Kenya Light and Power Company (KPLC) is reported to be seeking a licence to sell fibre capacity and will invest Kshs. 2.2 billion if it gets the go-ahead. Funding for the investment is coming from the European Investment Bank under its Energy Sector Recovery Project and KPLC has chosen a German company (Fichtner Gmbh) to provide consultancy services for the project which will connect Nairobi, Mombasa, Nakuru, Kisumu, Eldoret, Nyeri and Tororo in Uganda providing a national backbone for telecommunications players.
This Week
The Blues
It’s that time of the month again.
Stanchart Top Bank
Market Intelligence published their eighth annual banking survey this week, and ranked Standard Chartered as the top bank in Kenya, followed by Barclays and surprisingly coming third was Equity Bank no. Other rankings are Citibank 9th, KCB 25, National Bank 26, and Co-operative Bank at number 30.
Corruption
The Economist took its bi-monthly look at Kenya and notes that the prosecution of anti-corruption cases will continue to fail as long as they are handled by the Attorney General’s office – and that Parliament should transfer these powers to the Anti-Corruption Commission.
Privatization
Both the Daily Nation and the East African Standard condemned the Privatisation Bill passed last week in Parliament, because it handed the entire privatisation process over to a “Gang of Eleven” – political appointees handpicked by the president and the Minister for Finance and who are not subject to approval of the Parliament . Earlier drafts of the Bill had provided for the involvement of bodies such as the Law Society of Kenya, the Institute of Certified Public Accountants of Kenya and the Federation of Kenya Employers in the privatisation process.
Elsewhere, India has abandoned plans to privatise a dozen profitable state-owned companies.
Airport Hotel booming
The new Panari Hotel is doing roaring business from airline passengers and crews. Because of its location on Mombasa Road, about halfway between Nairobi city and JKIA , hotel guests rarely have to worry about traffic jams on their way to the airport for their flights. It is also quite convenient for Wilson Airport passengers.
Debt forgiveness
The Kenya Planters Coffee Union (KPCU) has re-opened a debt moratorium window 1st September to December 31st 2005. This will extend debt relief to farmers by giving them a chance to repay principal amount (no interest will be charged) from 31st December 1991 to 31st December 2001 with all interest payments forgiven.. However, this is not likely to fly as coffee farmers are asking the government for complete, 100% debt forgiveness including principal.
Sports Weekend
Saturday 20 August
12:30 – 15:00 MNET/SS1 Tri-Nations:: Australia vs SA,
13:00 – 14:15 SS2 Formula One: Turkish Qualifying,
14:10 – 17:00 SS3 FA Premiership:: Man Utd vs Aston Villa,
14:15 – 16:30 SS2 Scottish:: Rangers vs Celtic,
17:00 – 19:15 SS3 FA Premiership:: Liverpool vs Sunderland,
17:00 – 19:15 SS6 FA Premiership:: Newcastle vs West Ham,
19:15 – 21:30 SS3/CSN FA Premiership:: Birmingham vs Man City,
22:45 – 01:00 SS7 Spanish Super Cup: Barcelona vs Real Betis,
Sunday 21 August
14:30 – 17:00 SS2 Formula One: Turkish Main Race,
15:00 – 17:45 SS3 FA Premiership:: Bolton vs Everton,
17:45 – 20:15 SS3 FA Premiership:: Chelsea vs Arsenal,
18:00 – 21:00 SS1 IAAF GP: GP – Sheffield,
KQ follow-up
Results are out following the Kenya Airways director elections which were again decided by KLM (120m shares) and the Government in Kenya (106m shares), the major shareholders, who were in harmony in their voting this time. Minor shareholders (i.e. the rest of the top 10 owners) had limited impact on the outcome.
New directors in bold are:
Neil Canty: for 251m votes, against 5.6m votes (against all major shareholders for; one minor shareholder against)
Joram Kariuki for 500,000 votes, against 256m (all major shareholders against)
Ayisi Makatiani for 241m, against 15m (all major shareholders for; some minor shareholders against)
Evanson Mwaniki: for 241m, against 15m (all major shareholders for; some minor shareholders against
Chris Obura: for 15m, against 241m (1 minor shareholders for; KLM, Government & other minor shareholders against)
Japheth Rob: for 745,000, against 256m (all major shareholders against)
Lois Wambua: for 934,000, against 241m (all major shareholders against)
Also, the East African Standard has an intriguing take on the exit of former Chairman, Isaac Omolo Okero.
Redemption?
Eliud Kipchoge (centre) beats Kenenisa Bekele (left) and Hicham El Guerrouj (left)in Paris in 2003
Now that Kenyans are no longer the favourites, can they Kenya pull out more suprises and regain some track and field glory? Find out at the following upcoming events on Super Sport this month:
Friday 19 August: 20:45 – 21:30 SS6 IAAF Golden League: Weltklasse, LIVE
Sunday 21 August: 18:00 – 21:00 SS1 IAAF GP: GP – Sheffield, LIVE
Tuesday 23 August: 20:30 – 23:00 SS1 IAAF GP: Super GP – Linz, LIVE
Friday 26 August: 21:00 – 23:30 SS2 IAAF Golden League: Memorial Van Damme, LIVE
Sunday 28 August: 18:00 – 21:00 SS1 IAAF GP: GP – Rieti, LIVE
At the Nairobi Stock Exchange
IPO
Kengen
Kengen has now invited tenders for the advertising and public relations services (deadline September 8) for its IPO. The transaction and legal advisors they selected earlier are now hard at work towards the IPO which is expected early next year.
Equity
While Equity Bank management have told their staff that their IPO will be in October 2005, they have not publicly engaged any IPO advisory firms and partners.
Others
Other firms which have expressed interest are not expected to be ready for at least another year.
Buyouts
Barclays
Absa Bank of South Africa is expected to buy Barclays Kenya and 10 other Barclays Africa operations within the next two years following the successful conclusion of Barclays return to South Africa through a majority buyout of Absa. to buy Barclays Kenya
Pan African Insurance
South African underwriter, Sanlam has offered to purchase Africa Life (SA) which owns 50% Pan Africa Life Assurance Company which is listed at the NSE
Uchumi Rights
The Capital Markets Authority has approved an Uchumi Rights issue, to take place later this year which is expected to raise 1.2 billion shillings for the supermarket chain. The Uchumi shares register will close next Monday (August 22) and only shareholders of record will be allotted rights to subscribe to new ordinary shares.
Bad Loan
“Never borrow to play the market” is advice that is given the world. Yet Co-operative Bank is marketing a personal loan geared towards enabling people to buy shares at the Nairobi Stock Exchange. Terms are no security required for amounts below 500,000 and the maximum loan term is 36 months at competitive interest rates.
Sterling Comeback
Sterling Securities has been re-admitted as a broker at the NSE. The company has first had its license first suspended in 1999 following operational and managerial constraints
Daily Results
The NSE has set-up a daily price list, available at the end of each trading day at its web site click on the picture. It’s an excel spreadsheet with a major error – that can give you 27 copies if you choose to print it.