Google discovers the NSE

Google finance has begun covering the Nairobi Stock Exchange. It’s still in beta so it can only get better. Some information (mostly company managers) and financials are outdated, and it would be nice to see some blog contributions in addition to the news feeds like at Reuters Africa

Job & numbers

Citizen TV: 000’s are the reasons that several media stars have decamped to Citizen TV. For the KTN crew it was about playing one house against the other to raise the salary stakes before they moved on, but not for as much as they had hoped. For those left at KTN salary caps are now in order on a take it or leave it basis.

KCB: Deputy CEO Martin Oduor Otieno got elevated to lead KCB this month, despite the KCB board erroneously including a clause that CEO candidates should be under 50 years of age which the new MD is over by about a year.

Jobs available
most from the daily papers in the past week

African Development Bank: Research Economist, Senior Research Economist, Financial Management Specialist, Principal Environmentalist, Senior Gender Specialist, Principal Socio-Economist, Senior Statistician. Apply to recruit@afdb.org by 10/4

Barclays: Direct sales agents (ref: DSA07), direct sales team leader (DSTL07) D/L is 30/3

Brand & technologies Limited: managing director, finance manager, commercial manager, logistics manager, procurement manager, internal audit manager, hr & admin manager, ICT manager, brand managers (4). Apply through Deloitte at esd@deloitte.co.ke by 6/4

Senior financial planning coordinator at Celtel . Apply to hr@ke.celtel.com by 30/3

I & M Bank: Cashiers/Tellers, IS Security Administrator, ICT Management Trainees, Credit Administration Officer (Securities and Documentation), Credit Administration Officer (System Input and Maintenance), Credit Administration Officer (Monitoring and Control),

Young professionals (10) at KIPPRA. Details online and D/L is 20/4
– Also at KIPPRA – research consultants/associates, research assistant, editorial consultants in fields of macroeconomics, productive sector, private sector, social sector, infrastructure & economic service. Apply to eoi@kippra.or.ke by 20/4

Kenya Tea Development Authority: brand executive and a web administrator. Apply to recruitement@ktdateas.com by 10/4

Regional information & communication officer at Oxfam and D/L is 4/4

Senior Manager – Financial Systems & Analysis at Safaricom. D/L is 2/4

Management trainees at the Standard D/L is 11/4

World vision: Africa advocacy director, Africa Christian commitments director, and Africa communications director. Details online and D/L is 13/4
Also National Director, Uganda, Programme Director, North Sudan, Programme Director, Somalia. D/L is 20/4

Easter Tourism

The first of two tourism fairs (the other one is held before the Christmas) was held at Sarit center last weekend. It is meant to cater for the Easter holidays and the low tourist season which runs from around April to July.

With many more airlines flying to Mombasa – Kenya Airways (KQ), Air Kenya, EA Safari, Fly 540, Jetlink, there are fewer bundled packages (air fare, and hotel stay)now offered. Still there was 2 nights at Travelers Hotel (half board) in conjunction with Fly 540 priced at 25,256 shillings ($361) for the low season, compared to 30,800 ($440) in other months. Also Leopard Beach resort which has been rather quiet on the marketing front has re-emerged with more affordable fares – a similar 2 night stay/flight package is priced for Fly 540 (26,540), KQ (26,700 i.e. $381) or Air Kenya (26,520)

There are also quite a few packages to Northern and Western Kenya – places like Baringo, Samburu and Saiwa Swamp (22 km from Kitale) in addition to more foreign packages been sold at the fair with destinations in Ethiopia, Egypt, South Africa, Rwanda (to watch mountain gorillas) and Uganda (the new Kampala Serena), joining the usual Zanzibar and Dubai ones. These included honeymoon trips to the Kampala Serena at $420 per couple for 5 nights and another to Johannesburg & Cape Town for $2,400 per couple.

There were also some youth packages such as 2 nights/3 days camping at Masai Mara or Tsavo at 12,000 shillings ($171) p.p. from silver bird and a schools package (aimed at class trips) from Sarova to Shaba, Lion Hill or the Mara. (priced at about 60% discount)

Finally, Kenya Airways have a midweek to Dubai special at $500 for 2 tickets, while Emirates Airline (who were not at the fair) are said to have $160 ticket to Dubai that is used as a seat filler

Related: A report on the November tourism fair

Looking back on Kengen & Total

Total: In October last year, Total Oil held a cocktail party to reassure shareholders after some dismal 9 month results.

Now that the 2006 results have been finalized, here are some other things shareholders were told at the event.

  • Company experienced difficulty with the up-front payment of taxes and ineffectiveness at the oil refinery in Mombasa.
  • Total had made a provision of 100 million shillings for an oil marketing case, but that very day the high court had ruled in their favour.
  • The Chairman (Mr. Nguer) promised that the results at the end of the year would be much better than the 9-month ones
  • More comparisons to Kenol: he said that Kenol share price was 115 shillings in April and 109 on that day in October, while total had similarly changed from 44 to 37/38. He also said that while their operations were down 9%, Kenol’s were down 30%. [Today March 2007 – Kenol is 85 and Total 30]
  • Commenting on Mobil oil exit and entry of Tamoil (of Libya) to Kenya, Nguer remarked that the sector was stable but that oil marketing was unique in Kenya and some multi–nationals could not understand this.
  • On threats by Minister of Finance to fix oil prices, he said he did not see the country going back on its 1994 deregulation of the sector prices

Kengen: The surprise announcement last week that a Geothermal Development Company  (GDC) would be hived off from Kengen prompted a look back at the company’s pre-IPO prospectus. And sure enough in the future outlook for the company, the Kengen prospectus does mention the state will set up a geothermal development company to undertake high-risk activities such as exploration and drilling. It will be financed by appropriations from parliament and will take over Olkaria from Kengen.

Also that:

  • Regulator (ERB?) will be empowered to set the price of fossil fuels bought by Kengen i.e. diesel. This is likely to affect independent power producers.
  • New rural electrification authority. Any impact on KPLC?
  • Kengen to bill KPLC at 2.36, not 1.76 per kWh which has become a hot button issue in this election year.

Sugar crisis countdown

Mumias is Kenya’s main sugar company with diversified operations and whose future plans include ethanol production and electricity generation.

However, while they believe they are ready to compete in the future, they worry that other companies and the sector will be negatively affected and could collapse after March 2008 when an import restriction expires – thus allowing unlimited amounts of sugar to be imported duty-free from other COMESA countries.

As such they are commissioning a study (pre-proposals to be sent to the company by 5/4) to see what impact this will have on the sector and calling for urgent action.

Issues they are raising:

  • Other countries – Brazil, Pakistan, Australia, Mauritius, SA, Zambia etc. protect their sugar sectors through tariff and other non-tariff means like subsidies – so why not Kenya?
  • Is the sugar imported from COMESA country Egypt – truly Egyptian in origin? Mumias suspects much of it is dumped from Brazil and under-invoiced by the time it reaches Mombasa. Malawi and Swazi sugar are also suspect.
  • The sugar sector has not been supported in terms of tax breaks, subsidies, infrastructure and incentives like other Kenyan agricultural sectors such as coffee, dairy, tea, and livestock. Also, when the sector was liberalized/privatized it was not recapitalized as expected leaving companies with debt burdens.
  • Does Kenya benefit from COMESA more than it loses by supporting the local sugar industry? What is the value of Kenya exports to / imports from other COMESA countries? Are sugar, ceramic, textiles and rice from Egypt truly Egyptian products? What is the value of exports to COMESA by Kenyan owned companies?
  • Ascertain Kenya sugar contribution to the economy in terms of taxes, infrastructure, and employment.

For Mumias: It’s troubling that you can buy rice from Pakistan at Uchumi or Nakumatt is priced cheaper than the local Mwea rice (which I buy). So what will happen with sugar? The March 2008 date has always been a crucial day for any Mumias shareholder to consider and the company will certainly benefit from a continued exemption. Mumias makes a great deal of mileage as the only widely circulated Kenya branded sugar product – with the connotation of buy Kenyan, your taxes at work etc.

Homeless African Banks

Regional African banking institutions seem to be having some trouble with their host nations.

First, it was the African Development Bank which is hosted by Tunisia after war broke out in Ivory Coast. A Wall Street Journal story earlier this month highlighted the dilemma posed by US pressure to have this African Bank hosted in an African, i.e. sub-Saharan country, but at the same time not shut the door on a return to Ivory Coast.

Now it’s the African Export-Import Bank which is about to be evicted from Egypt. This stems from a long running dispute when Egypt, upset that one of their own was not elected president of the bank, locked out the incoming president and froze their funding of the bank. Bank shareholders met thereafter and resolved that the election of the president was in order and asked that Egypt accept and respect that decision. Now Egypt has decided to sell their shares in the bank – resulting in the members looking for a new headquarters.