Bank Barons

Jaindi Kisero points out that commercial banks borrow money from you at 2% and lend it to the government at 8%.

Year end
ICDCI closed the year with a profit after tax of 295 million, up from 241m in 2004. While investment income dropped sharply from 355m to 240m, expenses remained flat at 80m. The increased profit comes from the 1st time inclusion of UAP Insurance results (ICDCI owns 24% of UAP which returned a profit of 334m) and this lifted up income from share of associated companies from 72m to 245m. In addition to a reduced stake in Uchumi, ICDCI also owns 1% of KCB and EA Breweries, among other investments. The company will pay a dividend of 3 shillings per share (same as in ’04) on December 7 to shareholders of record as at November 10th.

New Uni
The Great Lakes University of Kisumu, a new institution, is being built in Kisumu by the Tropical Institute of Community Health & Development (TICH) in Africa.

Flight plan
The Standard on Saturday reported that Air Kenya had cleared a 333 million shilling debt with Barclays bank to avoid being placed under receivership. In May, Barclays had appointed a Statutoty Manager when the airline defaulted on its debt.

Ugly face of food aid
American generosity must be good, not just for the world’s hungry, but also for American agriculture.

Illegitimate Parliament

Something I should have posted before, but quite relevant now that Parliament has passed two bills without a legitimate quorum voting

In May this year, the Daily Nation launched a quorum watch column to highlight the issue of lack of quorum in Parliament. It doesn’t give an actual summary of the attendance, duration or contribution of individual members of parliament, but it exhibits moments when the validity of debate, bills, and laws passed (if any) should be questioned.

Here are some excerpts from the month of June/July, and long before the Banana/Orange madness began that would take MP’s away from Parliament. Note that the parliamentary calendar during a year runs for 28 weeks.

Thursday June 9th (day after Budget Speech): Nation comments that Parliament failed to raise the required minimum to form a legitimate quorum that corresponds to their number each term – It currently stands at 30 (out of 222 members) At 5 PM, there were 12 members present, and by 6:15 PM, there were only 6.

June 16 (Thursday): At 6:12 PM, Wafula Wamunyinyi (NARC MP, Kanduyi) alerted temporary Speak Samuel Poghisio that the members in the House fell short of the number to conduct business. There were only 9 MP’s present, and House Rules require that there must be at least 30 MP’s present, excluding the one presiding (Speaker).

June 22 (Tuesday): Just 3 hours after Speaker Francis ole Kaparo warned members against absenteeism, the House was hit by a lack of quorum for a few minutes as Mutula Kilonzo (KANU nominated) informed temporary Speaker Samuel Poghisio that only 12 MP’s were present. Deputy Leader of Government Business George Saitoti, and Chief Whip Norman Nyagah “had a hard time trying to get more members into the Chamber.”

June 23 (Thursday): Only 13 MP’s were present as Finance Minister David Mwiraria responded to issues MP’s had raised regarding the Government’s expenditure. At one point, no MP stood to respond to Mwiraria’s speech, leading Speaker Kaparo to call on Mwiraria to respond to his own contribution. Elsewhere on that day, Speaker Kaparo described MP’s as being dishonest, selfish, lacking any ideology, ignorant of house rules and have put the house in disrepute.

June 23 (Thursday): Only 8 members in Parliament at 12: 15 PM – but no one alerted the Speaker.

June 28 (Tuesday): Bill on tax measures was being discussed when there were only 10 members present at 5:25 PM. No one alerted the Speaker.

July 5 (Tuesday): At 5:35 Wafula Wamunyinyi alerts temporary Speaker, Samuel Pogisho (MP KANU, Kacheliba) that there’s no quorum – only 15 (11 government, 4 opposition) MP’s are present at the time. Several MP’s grumble at Mr. Wamunyinyi’s move.

(Wednesday) July 13: Parliament has 74 MP’s present (a high) at 3:55 PM as they discuss the budget of the Office of the President (OP).

(Thursday) July 14: Discussion of the OP budget continues, but by 7:20 PM there are only 28 (21 government, 7 opposition) MP’s. The bell was rang, and quorum formed a few minutes later and MP’s passed the Bill at 7:36 PM. Although parliament normally adjourns at 6:30 PM, MP’s extended it by an hour to clear a backlog of work.

(Tuesday) 19 July: Discussion on the Forest Bill takes place with only 16 (14 government) MP’s present at 6:30 PM. No one alerts the speaker.

(Wednesday) 20 July: 2 private member bills are passed: One bill by David Koros (opposition KANU, Eldoret South) called on the Government to provide loans to mid-level colleges and was passed at 10:21 AM by 18 (14 government, 4 opposition) MP’s who are present. The other by Gor Sunguh (Government, Kisumu Town East) that seeks to regulate advertising is passed at 12:20 PM by 13 (11 government, 2 opposition) MP’s.

(Friday) July 22: Vote on the draft constitution/referndum extends to midnight before a full house.

(Tuesday) 26 July: Debate on ministry of agriculture only 19 in house at 5:30 – 15g 4 op – no one alerted the speaker over lack of quorum until 6:30 when the house adjourned. Also six question in the order paper were deferred as ministers and MPs failed to show up

(Wednesday) 27 July: parliament adjourns early due to a lack of quorum during a debate on the 8.3 billion budget of the ministry of agriculture.

Tea warning

With tea in abundance in China, more and more is being shipped abroad – and expanding sales by Chinese tea growers are causing alarm in other developing countries that depend on growing tea, like India, Sri Lanka, Indonesia, Bangladesh, Kenya, Malawi and Zimbabwe.

In 2004, Kenya surpassed Sri Lanka to become the world top producer of tea with the her top 4 export destinations being Pakistan (23.2%), UK (15.1%), and Egypt (19%).

24 hour wedding cycle

Another reason for my on-going new car search showed up over the weekend. I got ready to attend a wedding, but as I tried to leave for the Church, the car would not start. Since I was all dressed up, I didn’t bother tinkering with the engine and just left the keys at home and started a three-matatu trip to the wedding.

Call me mzungu
The wedding was card only and was at a posh hotel on Thika road. I arrived there a full half-hour before the wedding was scheduled to start and sat to have a beer and read a newspaper while I waited for the other guests. 30 minutes later, I was still on the lawn with a handful of guests as watched preparations continue unhurriedly. Organizers of the wedding were sipping some drinks that clearly were not sold at the hotel and it was clear that the wedding was not going to happen any time soon. Having had one drink from the hotel at 200/= I decided to step off the grounds and take a cool down at a more affordable place and I made a long walk to a joint called Fifi’s that was recommended by a friend.

Fifi’s is a nice joint next to the gate of the USIU campus and had an interesting  mid-day crowd – a mix of dreadlocks which seemed to be the hairstyle of choice for men there, while some girls dressed like they just got off from K street. The guys playing pool were very good – accurate shooters with their own personal cue sticks, while other patrons put their student bags on the bar counter as they sipped their drinks. I had 2 drinks there as I finished my paper before i retuned to the hotel. I was back at the service 90 minutes after it was scheduled to have started but i still arrived just as the bride was finishing her walk up the aisle. This African time is quite common at weddings but is sometimes frustrating especially towards the end of the year when people often plan to attend two weddings in a single day.

He who is without sin
Anyway, after some singing, the pastor proceeded to give a sermonette before he proceeded to the vows. He described the couple in wonderful terms, as good people, who had ‘ministered to’ for a long time – but they went astray and she got pregnant! – but who have done the right thing and decided to get married today

This shocked me because I know the bride well but only found out a few days ago that she was expecting. She’s not showing and her condition was not visible even with the trim white dress she wore at the wedding. The couple appeared unfazed but this but I was horrified at what I felt was an intrusion into their privacy and a permanent smear on their big day. The pastor had no right to make such an announcement and this should have remained a private matter. Several weddings that I have attended have been followed by the arrival of a baby before nine months.

Good people can make bad decisions or get into situations and some churches need to accept some facts about modern life today and should adapt if they wish to retain their congregations and members.

Bootleg country
Back in town I took a walk around and discovered the beauty of bootleg DVD’s. The popular packages now are star packs where you’ll get 5 of Julia Roberts, Denzel, or another stars’ movies on 1 DVD of reasonably good quality for 500 shillings ($6.85). You can also get an entire season of the Sopranos or Friends (13 episodes) on 1 DVD. The DVD’s are put together presumably in the Far East, and have misspellings like “the best of Van Diesel” or the movies combined without logic – I found a DVD with Blade 3, Oceans 12, Alexander, Forgotten and the Grudge.

The Kenya Revenue Authority also plans to clamp down on the importation of second hand phones which are often brought in duty-free as personal items but end up being sold around the country.

From dusk till dawn
The next morning I went to Choices at about 8 a.m. to watch the Grand Prix live from China. There were many vehicles at the entrance already and much noise on the street. When I entered, I found that this was from a group of about twenty laughing and very drunk young men and women who were being escorted out of the club after a night of drinking. The vehicles at the front were eager taxi drivers all waiting to drop these people home. The patrons were in no hurry to finish up their drinks and kept pestering the watchmen to buy one more beer or allow them back in to use the bathroom. After a few minutes they let us in (i.e the sober people who had just arrived) and we watched a great race – after which I continued my car search at dealers in Nairobi West.

Only in Kenya
On a matatu ride back from Choices on Sunday morning, I sat behind the driver, and there was a box stationed on the spacious ledge in front of my seat. It appeared to be nudging my leg, but I didn’t pay attention to it. It wasn’t till I was almost home that I looked down at the box, which was a carton, with a hole in one top corner – and sticking out of the box was the head of a live chicken. It was being taken to someone’s house, obviously as a Sunday afternoon gift or dinner, and it kept looking up at me. It appeared to be having difficulty breathing in the stuffy vehicle, and it kept opening and closing its beak. I felt sorry for the bird and felt like turning around and offering 2 or 300 to the owner of the bird so I could buy and release this chicken to freedom on this special Sunday.

But my humanitarian moment was spoilt when I realized that I was also holding a take-home lunch consisting of chips and fried quarter chicken from Kenchic.

Moi Day weekend

Corporate Week

Athi River Mining Bond
Athi River Mining launched an 800 million shilling ($11 million) long-term bond with a final maturity in 2010, and priced at 1.75% above the 91 day T-Bill. The proceeds of the issue will be applied as follows: 600 million towards completion of clinker plant in Kaloleni (Mombasa – expected completion in April 2006) and 200 million towards repayment of short-term bank debts. The bond can be bought between October 18th and 24th with settlement on the 27th and it will be listed on the NSE from November 7th. ARM expect the new plant investment will double profits in 5 years and increase the company’s turnover to kshs 3 billion and make it the lowest cost cement producer in the region. However the biggest risk facing the industry is power supply, energy price -which account for 40% of cement production costs .

CFC Rights Issue
On the same day the Uchumi rights issue came to an end, CFC Bank announced one of their own. The Bank will increase their share capital to match their expanded asset base (over 18 billion shillings) and to comply with CBK requirements. CFC have called for an extraordinary general meeting on October 31 where shareholders will be asked to approve (i) authorised share capital to be increased from 720 million to 1 billion shillings by creating 56 million new shares of 5/= to rank pari passu with existing 144m shares (ii) a rights issue where 12 million of the new shares will be offered to existing shareholders in a ratio of 1 new for each 12 held.

KPLC year end
Kenya power & lighting company announced their results for the year ended in June 2005. Revenue increased from 23.9 to 29 billion shillings (inclusive of “fuel cost recoveries” amounting to 6.6b). Total operating costs also increased from 23 to 27b. Profit after tax increased from 458m to 1.27b shillings and the company announced a first and final divided of 1.5 shillings per share to be paid in December.

Insurance reform
Insurance companies will be asked to compile better financial reports and accounts using a standard template. For 2004, insurance companies published accounts using a variety of formats with some omitting director names, net assets and profit/loss information.

Separately, the industry regulator body, the office commissioner of insurance, could soon be an independent agency – it is currently a department of the Ministry of Finance. Critics say this has limited its authority to enforce specific industry requirements, resulting in the collapse of a number of insurance companies.

Cultural

Gala night
The Marketing Society of Kenya 2005 Gala Night will be held on Friday October 14th at the Karen Blixen museum. Costs are 2,500 for students, 3k for individual and 30k for corporate tables.

Museum Closing
The Nairobi Museum will close for 20 months for a facelift and expansion project dubbed “museum in change” – from October 15th to July 2007. However the snake park and regional museums will remain open.

Kenyan lives

Constitution
A writer in India looks at the referendum debate and how it will affect Kenyan-Indians.

Athletics
Kenyans in Alaska? Yes, they are athletes at the University of Alaska-Anchorage.

Sport weekend

Saturday 08 October
07:00 SS2 Formula One: Japanese Qualifying LIVE
07:00 SS1 Super Series: Australia vs. Rest of the World Xi 3rd ODI, LIVE
17:45 SS2 WC Qualifier:: Rwanda vs. Angola, LIVE
17:45 SS3 WC Qualifier:: Cameroon vs. Egypt, LIVE
17:45 SS6 WC Qualifier:: England vs. Austria, LIVE
20:45 SS6 WC Qualifier:: Denmark vs. Greece, LIVE
22:30 SS3 WC Qualifier:: Tunisia vs. Morocco, LIVE

Sunday 09 October
04:00 SS6 Diego Corrales vs. Jose Luis Castillo, LIVE repeat @ 18:00 – 19:00 SS1
07:30 SS2 Formula One: Japanese Main Race, LIVE repeat @ 18:00 – 20:00 SS2
22:30 SS3 WC Qualifier:: Bolivia vs. Brazil, LIVE

Not much sports, but at least I have a wedding to attend on Saturday.