23:00
A formal statement is out today after Monday's press conference where the bank’s management revealed that through their 2008 IPO, Co-op Bank had raised Kshs. 5.4 billion (~$77 million) but short of a revised target of Kshs 6.7 billion as 66,576 shareholders bought 546 million shares. The Business Dailyreports the shares will be allocated 60% to individual investors (340.5 million shares) , 30% to institutions (171 m shares ) and staff will get 9% (52.6 m shares)
Capital raising: the offer was not underwritten (by D&B winner - best lead transaction advisor and best investment bank), but despite the shortfall, what was raised should be enough for a few years. Co-op’s capital adequacy goes from 9% to about 18%, which is not bad [10 billion would have taken to this to 22%]
Other banks that have been reported to have engaged in recent private capital raising include K-Rep and Southern Credit while others who may need to tap shareholders next year could Chase, CBA, CFC Stanbic and even KCB (for the third time in five years?)
Glass Half Full: Though Co-op had initially set out to raise Kshs 10 billion, their listing came at a tough time and was not received as enthusiastically as past IPO’s. Still it had some positives but came in a tough market before the target was revised down, but has some positives
- For the bank: 66,000 shareholders is a manageable register , and since they did a lot of the placement and receiving work in house, the IPO was not as costly as others (budgeted at Kshs. 248 million)
- For new shareholders: no refunds to queue for, and for once a 100% allocation
- For other serious investors, a brief return to sanity as the IPO speculators with their borrowed funds kept away – Co-op was the fall guy that injected some reality back into IPO process and share investments.
2009 IPO’s: Next year could see the entry of Nakumatt supermarkets, bread maker a DPL and others from the private sector.
From the public sector (Government side) comes a series of planned privatizations a few of which could be IPO candidates to assist the Government in fund-raising:
Top of my my wish list is Kenya Pipeline, whose much improved governance saw a consortium of banks line up this month to offer the company funds for expansion (a few years ago KPC was using dubious financial intermediaries) and Kenya Wine Agencies. In addition, more shares of Kengen East African Portland Cement Company and National Bank will be sold to the public.
Other non-IPO candidates will be targeted at strategic partners [for Kenya Ports Authority- and TEAMS (submarine cable)] while private investors may be sought to invest in the sugar companies [Chemelil, Sony, Nzoia, Miwani, Muhoroni] hotels of Kenya Tourism Development Corporation, banks [Consolidated Bank, Development Bank of Kenya] and food processors [Kenya Meat Commission, New Kenya Co-operative Creameries]
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21:28
Would a Barack Obama even be possible in Kenya?
» Paza Sauti Barack Obama is now the president elect and Kenyans appear to be even more excited than the Americans about the prospect of an Obama presidency. I understand the excitement and even share in it, however now that some of the dust has settled Obama's victory got me thinking. Is Barak Obama even possible in Kenya. I will not mentioned the issues we have with tribe and ethnicity. Though they are huge. Even without these Kenyans are a unique set of people, an a diverse group. I recall when Richard Leakey and full blooded third generation white Kenyan attempted to run for president. He was rewarded with forty lashes of the nyahunyo and Kenyan sneers saying " Huyu Mzungu hajui kuwa tuli pata uhuru." What if he was the man for the job? What if Kenyan would have been better off with a Richard Leakey? What if the man for the job is different from the regular Kenyan? These are not part of the national discourse as we shout OBAMA OBAMA OBAMA. For Kenyans your cultural heritage in an inherent part of the equation of your eligibility.
Now to many Kenyans Leakey is an extreme example but how different would this be from Obama's historic victory in the USA. Kenya has a number of nationals who have only been allowed to participate on the periphery of Kenyan politics.Like minorities in the USA they have been allowed to participate on all other areas with relative success but have been kept away from the political arena. First, its the Asian or rather Kenyan's of Indian decent. These Kenyans have been stereotyped as corrupt and no good elements, I know we have had our share of no good Kenyan Indians, but it is no reason to black list the this or any other community based on the actions of a few. Kenyans will willingly accept Patel's contribution to the economy, even cheer Rajit where it concerns hockey and cricket, but do not touch siasa or atleast the highest levels of siasa. Hiyo ni kazi ya mwafrika mweneji wa kabila yangu. Perceptions of so called Kenyan Arabs is no better. Then there is the so called half-caste, who we canot quite place. Kenyans continue to view our lighter skinned brothers as peripheral to the nation's destiny.
Now I have to be fair here. The Mafrika is not solely at fault here. The entire Kenyan family has to play in the same sandbox; and want to play together. We have had selective self-segregation in our schools, residential areas, clubs and pubs, based on race, tribe, religion and or national origin. We need to grow. So for all the faults that are sited about America and American society, we as Kenyans have a lot to learn and grow on treating our own as equals. We need to expose our own issues, we will never change unless we Paza Sauti.
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19:56
Go Ye To All The Banks And Borrow
» For Love and Money Go Ye To All The Banks And Borrow
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16:22
Kenya Imposes Strict Sanctions Against Somalia’s President....lol!!
» You Missed This 
Bwa ha ha ha ha! Bwa ha ha ha ha!
Yes folks, this Wetangula man is in fact a comedian. He has slapped President Abdullahi Yusuf with a travel ban..lol. Progress is seeing Kenya actualize the credibility to issue sanctions. Well, henceforth, the president of Somalia is barred from crossing the Kenyan border. But that’s not all folks; included in the adverse action is an order to freeze the presidents’ assets in Kenya. I imagine that would include bank accounts and real estate. Meanwhile, an internationally sort Rwandese fugitive is investing heavily in Kenya’s real estate and industry, operating several fat bank accounts and living nondescriptly in expensively furnished cellars of ambassadorial mansions ‘under construction’.
So what did Mr. President do to deserve such shabby treatment from a government that respects the AU charter on the sovereignty of countries such as Zimbabwe? He fired his non-performing Prime Minister and replaced him with his ally. More like a hybrid cabinet reshuffle…affecting one person. The kind of thing Moi used to do by the roadside while munching on roast maize and sweet bananas.
Of course no Kenyan wants to see Somalia disintegrate further. Its proximity alone should be reason enough for worry. But even with that said, don’t you find it a tad strange that our government continues to offer the African explanation when taken to task on Zimbabwe. Zimbabwe might not be an officially recognized war zone but the suffering of its people is incredible.
Responsible governments must join the International Community in pressurizing Mugabe to step down. As they do so, they must also ask the AU to close shop.
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11:31
Making Fun of the Christians
» What An African Woman Thinks Someone's having a laugh at our expense.
(We, the Christians. Because, I can no more disown them than disown myself. No matter how much I bristle, and kick up a fuss sometimes.)
Someone can be pretty funny too. Mostly because what she says rings pretty true.
Like No. 56: Christian culture likes grunge fonts.Christian items marketed to teens usually use an "extreme," "edgy" or "grunge" font. Like teenagers will not respond to your basic Helvetica.
And No. 39: Christian culture likes side hugs.When greeting someone of the opposite sex, Christians often employ the side hug. This is an unwritten rule of greeting so that you don't mash your naughty bits together and trigger stumbling.
Of course I've been to a no. 57 wedding. More times than I can remember. Which self-respecting Christian hasn't?If you have been involved in Christian culture for any amount of time, there is a very good chance you have been to a wedding where Steven Curtis Chapman's "I Will Be Here" was sung.
And some of them are pretty insightful too: Sample No. 32Christian culture likes to dissect prominent Christians' lives and figure out how they do stuff. They study what their daily life looks like, how they balance family and ministry, how many books they've published, and how large their churches that they founded are. Then they make study groups based on this or preach a sermon series on it. It makes us feel good to get it down in black and white so we can have steps mapped out.
I saved my personal best, No. 24, for (almost, but not quite)last: Catchphrases.Christian culture enjoys a catchy quip on a t-shirt or bumper sticker. These quips are intended to provoke and possibly shame their reader.
No. 9, Acting Happy, is the first runner up in my book:Christian culture places great value on acting happy. It mandates that if you know Jesus you will know peace and joy, and it parlays these two things into acting as if everything in your life is perfect. (Remember, you are a walking advertisement for Jesus.)
Seriously, when you look at us through these lenses, you've got to admit, we do come off as positively weird. And really, she hasn't made any of this stuff up.
So instead of taking offense, I'm all LOL. There's definitely worse things you can be than the butt of someone's joke.
Hmm. I probably could and should contextualise this list a little, draw up a Kenyan list.
Off to consider it.It's my window, but I don't own the view.
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The Coming Revolution: Who Wants To Fool With This 200 Kgs Gorilla?
» You Missed This 
You don’t fool around with a 200 kilo Gorilla.
You just don’t.
To emphasize this point many Americans would replace the words “fool around” with one four letter word for emphasis. It really matters little that you may be more intelligent than the Gorilla or that you have gone to school and it has not. When you come face to face with it, you just have to get out of the way pronto.
As far as Kenya is concerned Kenyans in the Diaspora cannot be ignored. To me they are that 200 kilo Gorilla. For starters they played a very key role in the last general elections and I am surprised that the Waki report does not mention them. Many people still don’t know it but they were ODM’s secret weapon. PNU also got a lot of “teeth” from Kenyans out there. Secondly they have been Kenya’s top foreign exchange earner for years with their remittances back home. In fact several industries in Kenya these days owe their very existence to our beloved brothers and sisters in the Diaspora.
Lets take a quick peep into history. Historians tell us that soldiers returning from the first and Second World War were major catalysts in our struggle for independence from our colonial masters. They came back different people after seeing the world out there. In my humble view Kenyans in the Diaspora will play an even more significant role in the coming revolution that will sweep right across the continent and leave Africa barely recognizable from the old stereotypes of everything that has gone wrong.
But there is a major problem currently best illustrated by the dramatic change that takes place to diasporans when they return home. More so I am talking about their political views. I have several friends who have argued with me for hours about things I have said here on Kumekucha when they are out there. But when they come back home they quickly change their positions and begin to agree with me on almost everything. Folks in other words it is really important to be on the ground or at least to have your ears on the ground. Of course this blog helps in that a lot and that is why some folks are really upset with it. (But that is a story for another day).
Indeed I made that mistake of assuming things in the early years of this blog. In the run up to the constitutional referendum of 2005 I predicted in this blog that the Yes, banana vote would prevail. Many readers of this blog do not know it but they have benefited immensely from that mistake I made because I went to great pains to ensure that never again, no matter where in the world I am would I lose touch with the ordinary Kenyans on the ground. I dare say many comments on this blog from our brothers and sisters out there clearly demonstrate that they are a little out of touch.
But as I said earlier, Diasporans cannot be ignored and they are a constituency that is way too powerful to be disregarded. I am aware that some prominent bloggers here love to call them “voteless”. Whatever that means. But I am talking about an influence that reaches into the ballot box even where no direct voting takes place.
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In my book they are much more powerful than the legislature that was busy this afternoon flexing its' muscles, with some MPs emphasizing the superiority of parliament and some accusing each other of “playing to the gallery”. Now that is very strange indeed because isn’t that exactly what an MP is supposed to do? They are all elected by the people who ultimately wield the real power as some of those cocky braggarts will discover in the not too distant future. MPS are supposed to play to the gallery of the people. The people are the ultimate law makers in the country and they speak through their leaders. However in Kenya things have been a little different. The Parliamentarians are the bosses and the people are pawns to be conned and cheated and bribed at election time.
Not any more.
Mark my words. Not any more. And NEVER AGAIN.
The Daily Nation says that our hero Fredrick Odhiambo is lucky to be alive. Well the guy in Iraq who threw shoes at President George Bush is not admitted to a hospital is he? And yet that was much more life-threatening. Read the amazing confessions of Fredrick Odhiambo.
The hottest story on Kumekucha this past weekend;
Is Safaricom's Michael Joseph a threat to the ruling class and the rich and powerful?
Which member of the current executive in Kenya was carried out of a function recently, unconscious due to overindulgence in hard drinks? Millions of Kenyans have never known that this man has had a drinking problem for years. The amazing story is in this weeks’ Kumekucha Confidential. Subscribe now, it is FREE. Send a blank email now to:
kumekucha-subscribe@yahoogroups.com
If you are already a subscriber you do not have to do anything. The hot info should already be in your email in-box.
Plenty of Kenyan jobs available at this site.
Be sure to check out this mouth-watering African dishes in Nairobi.
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3:53
Half-Hour for Haiti: Invest in Hope and Justice for Haiti
» Black Looks 2008 has been a year of great tragedy, but also great hope, for all of us at the Bureau des Avocats Internationaux (BAI) and the Institute for Justice & Democracy in Haiti (IJDH). The bad news from Haiti kept coming, from April’s food crisis to August’s hurricanes and November’s school collapse. As usual, it was [...]SHARETHIS.addEntry({ title: "Half-Hour for Haiti: Invest in Hope and Justice for Haiti", url: "http://www.blacklooks.org/2008/12/half-hour_for_haiti_invest_in_hope_and_justice_for_haiti.html" });
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