Uh Oh

Here we go again The Indian Ocean Newsletter reports

Just a few months after the collapse of the Nyaga Stock Broker , a large company heavily indebted to its clients, another stockbroker on the Nairobi Stock Exchange (NSE) is in turn facing financial problems

Did the unintended collaboration of Coldtusker / Business Daily unearth the firm? This comes after several recent articles in the Business Daily on the renewal of broker licenses by the Capital Markets Authority.

Plastic cheaper: KCB lowering their credit cards fees. Annual fees for the KCB card will now be was 3,000 (~$47) from 4,000, while their Visa Gold will now be 4,000 (~63) from 6,000. Card penetration remain lows, I believe Barclays are the biggest company with 81,024 cards in 2007 (double 41,019 in 2006)

Entry-level opportunities (and expiry dates)
most from the daily papers last week
– Graduate trainees at the East African Portland Cement company (15/7)
– Management trainees at Unilever Kenya (7/7)
– Management trainees at Telkom Kenya (7/7)
– Young processionals program at the World Bank (15/7)

Safariom Day 16: Deals 3,939 Turnover 270.8 million shillings [$4.23 million] Avgerage 7.44 Closing 7.40 [+ 2.07%] High 7.55 Low 7.30 Last 7.45 Volume 36.4 million shares. Commentary: A constructive session. Bouts of indigestion are to be expected but those who had to flip [over leverage] have done so by now, given the volumes we have witnessed since the IPO. [Commentary and data provided by Rich.co.ke – Nairobi Stock Exchange Authorized Data Vendor]

13 thoughts on “Uh Oh

  1. adam23


    How can one access these daily papers for the job descriptions?..for those of us, outside Kenya. Or can post the job description, if not. I understand, it is alot of work.


  2. Jakarumba

    Banks, could someone come out and put it clearly that Drumond in in choppy waters?
    I have that feeling and last week I moved to African Alliance.

  3. Acolyte

    Now let me ask a question that may seem silly. If my stockbroker crashes, are my stocks safe?
    Second comment, I dont have any Kenyan stocks but these quick failing stockbrokers, the shorting of stocks by stockbrokers and lack of oversight makes it very unappealing for investors based abroad I tell you. We want to invest in kenya but at times the risk seems a tad bit much I tell you….

  4. fimbo

    I also don’t have any money on the NSE. Its just too much work keeping up with these shenanigans.

    Do you really need word verification on your blog?

  5. Peter Njenga

    I have been reading your blog for quite some time now. Very insightful.
    What stockbroker is this? I wonder where we should invest then.
    Keep it up!

  6. Anonymous

    hey just wondering what your take on MTN’s purchase of UUNET especially its implications on Kenya. does that mean MTN has entered the kenyan market stealthily

  7. MainaT

    FD is a long-standing basket case. If you recall, when Riba Capital did his famous rogue stockbroker’s post in 2006, somebody mentioned that it was in trouble then.

  8. bankelele

    Adam23: will try. The WB should be online

    Jakarumba: They treated some friends of mien really badly two years ago; we’ve never stepped back in

    Acolyte: Your shares should be ok. They are intermediaries, but they don’t hold the shares.

    Fimbo: brokers have let down a robust exciting market
    – & yes I need word verification

    Peter Njenga: I truly don’t know

    MainaT: brokers have let down the market. I guess former Chairman Jimnah Mbaru had the foresight to call for stronger brokers, but the club members did not want to invest to handle the increased volumes post-Kengen

    Maishinski: Mumias did the same thing for years (at 9 – 11), albeit with a much larger share pool

  9. Acolyte

    BTW Those annual fees for credit cards are exhorbitant! There are hardly any cards here that charge an annual fee of $63, now wonder card penetration is so low.

  10. Anonymous

    My card provider charges approx 7k per annum.

    Then they give me enough Air miles for a free return ticket to a distance equivalent to Nairobi-Mombasa.

    The ticket is obviously worth more – so I guess the charges are a formality…

    Plus I get air miles every time I spend – irrespective whether I pay in full at the end of the month (zero interest)!

    Am lovin it.

    When such perks get to Kenya, just gimme a hallar and I’ll relocate.


  11. Anonymous

    21.7 Million worth of shares transacted in a day (.6M shares).

    Either someone is offloading Access Kenya – and they don’t want you to know about it… or Price manipulation is in action – or both.

  12. adam23

    Chili on Drummond…I think the Business Daily boobed. I think the article meant Francis Thuo and not Francis Drummond. Let’s verify the accuracy of the article before we get all tangled up. Our financial writers???

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