Thanks for all the great comments on the 3rd anniversary post.
I’d also like to salute Kenyan Pundit, an inspiration to taking blogging mainstream, on her 4th anniversary (also the first blogger I met).
I’d also like to salute site sponsor Mama Mikes on their
new blog - hopefully that will spur more local companies to take up corporate blogging.
I’d also like to thank other financial bloggers who help share the burden of disseminating and discussing financial information as it occurs here – and these include Cold tusker, Fintrade Capital, Kenya Capital Investment Group, Nairobist, Odegle Nyang (who’s able to mix in political angles), Pesa Tu, Riba Capital, Aly Khan, Ka-Investor and Tannznia Common Cents to name a few.
Thank you for all the people who ay that they have been inspired to start blogging
You said, you said
- More AGM’s: absolutely! In fact anyone who goes to an AGM is welcome to submit a report here
- Monetization; absolutely, always on the look out for more sponsors. But this site will remain free. Even the WSJ and New York Times have realized that the free content is the way to go
- Background: white/ black does not matter. But I’ m shocked that there are people having trouble reading the white screen.
- Job postings: will continue. They have been useful to some, but not to others
- M I hear you on your points.
- More writing on economics and inflation local development, other African countries, entrepreneurship - Yes
- Politics? No, I’d rather not, there’s enough elsewhere
- Partnerships with other bloggers? Women perspectives? I’d appreciate AGM reports, and any other posts of note for republishing. It’s amazing who know more about economics than you do and where you can learn more from unexpected sources. E.g. talking to Binyavanga Wainaina in Arusha I was amazed by his views on the work ethics and entreprenual potential of the Chinese companies and Eritrean nationals. He should write more on economic issues along with literature!
Any other suggestions, e-mail is on the about page
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bankelele
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Anniversary Redux
» bankelele -
External relations & Diaspora issues
» bankelele Safaricom IPO
It appears 35% of the shares on offer may be reserved for foreigners, but they may have to pay more per share than local investors or other East African nationals.
IPO please: The necessity of a Safaricom IPO – IMF says Kenya is not paying developemtn debts
No vote
Kenyans abroad always demand the right to vote from any government in power, but without much success. The logistics are not that difficult to manage as other countries are showing;
- About two months ago, a notice appeared in the nation inviting citizens of Botswana wishing to vote in the national elections to come and register at their Nairobi high commission (Gigiri) over a three week period.
- And now the Russia federation has invited its citizens who wish to vote in the state duma elections to come and cast their vote at the Nairobi Russian embassy (Kilimani) all day on December 2 (Sunday) – and all they need are their passports!
– So maybe one day the Electoral Commission of Kenya will be able to assist the Diaspora vote
Diplomatic pass
And just this week the Kenya government has waived entry fees for spouses and children of diplomats working with the US Embassy in Kenya. Hope this is reciprocated by the US.
Strong Shilling
The dollar is the dollar and it has sunk across the board and will continue for the foreseeable future. But the Kenya shilling which is up 12.8% against the dollar is up against almost all major currencies. Using the handy CBK exchange rate tool shows the shilling up 6.6% against the pound 1.2% against the Euro, 12.8 against the (Dubai) Dirham and 6.7% up against the Yen. The shilling is also 5% up against China currency (this year) which was not even tracked by CBK a year ago. In Africa, it is up 10.9% against the SA Rand, and 8.1% & 4.3% against the Ug and Tz shillings respectively.
The impact of a strong shilling can be debated, but is there anything that can be done about it, short of cracking down on the Diaspora, (going back to currency controls) or slowing the economy?
The Central Bank has already taken a beating for the shilling.
Opportunities
most from the daily papers this week
- Africa development bank: portfolio officer, private sector development, chief communication specialist (external relations &comms), ombudsperson, senior investment officer (investments & trading room – treasury), principal (infrastructure, regional integration & trade), principal trade regulation officer (infrastructure, regional integration & trade). Apply to recruit@afdb.org, by 30/11
- Africa online: group head of HR, group head of marketing. Apply to jobs@biz-deas.biz by 7/12
- Consumers insight: associate research director, senior research manager senior research executive, HR manager, front office coordinator jobs@ciafrica.com by 30/11
- Gro FIN – SME finance: business development managers in Kenya Uganda Tanzania. Apply to hr@grofin.com by 3/12
- Hashi empex: supply & planning manager, transport & logistic mgr, sales & marketing mgr, operations mgr. apply to hr@hashiempex.com by 7/12
- Housing finance: service delivery manager, credit risk officer. Apply to esd@deloitte.co.ke
- K-Rep bank: finance manager, regional manger (coast, nyanza, western, eastern, Nairobi provinces), monitoring & evaluation officer, microfinance officer intern. Apply by 7/12 though snail mail
- KTN on-screen talent search. Email screen1@eastandard.net
- Kenya film corporation : Internal auditor, communications officer, legal officer. Apply to info@filmingkenya.com by 30/11
- Business development manager at nation media group apply to bdm@nation.co.ke by 30/11
- NOCK: fuel business cared coordinator, alternative business executive. Apply to hr@nockenya.co.ke by 13/12
- Financial advisors at Winton investment services. Apply to jobs@wintoninvestments.com
tenders
- Resellers at Africa online resellers
- Malta Guinness business distributors for east Africa breweries d/l is 20/12- International tender from Kenya Pipeline Company and Kenya petroleum refineries ltd for an LPG import, handling, import, storage bottling facility. d/l is 21/1
- International tender for modernization of number plates by the Kenya Government (Office of the Vice president and Ministry of Home Affairs) d/l is 21/12 -
Mea culpa: more stockbrokers
» bankelele I have always been an advocate for more stockbrokers in the country especially to served in the rural areas.
But, as narrated in real lean times, there is a serious shortage of investors, not brokers.
This is because most Kenyan shareholders are buy and hold investors not active traders or speculators. This seen where companies with huge numbers of shareholders have relatively small numbers of CDS accounts (many of which are ghost companies created to increase IPO allocations).
So for those stockbrokers such as Discount Securities and CFC who have built nationwide branches, the volumes of investors and trades at theses offices are relatively low. – As a trip to the Mombasa and Nairobi offices of these brokers showed quick services, sparse halls and low activity. Such places only become strained before and after IPO’s but otherwise return to a slow pace.
So who should bridge the gap – productively and profitably? Stock agents, and stockbrokers through partnerships (such as CFC through Postal Corporation), Suntra (through Postbank) and Ngenye Kariuki (through K-Rep bank) to handle the everyday action, but not by stockbrokers opening up nationwide branches.
Next time you see a crowds around the block will be the Safaricom IPO in December.
Other Thursday briefs’
NSE:
- Speaking of Safaricom, there was a story in the Wall Street Journal focusing on if it the $500 million IPO will be accessible to foreign investors. A co-listing in London is possible using GDR’s
- Best wishes to NSE Chairman Jimnah Mbaru who will be contesting the Starehe parliamentary seat and stockbroker Ngenye Kariuki in Kiharu.
Banking:
- The government will sell 2/3 of the 90% shareholding in Development Bank of Kenya.
- K-rep to raise 500 million through a bond
- Islamic banking spreads as both K-Rep (Halat) and National Bank (Al Mumin) add Shariah complaint banking products
Real estate:
- Is the property boom over? Apartments are going vacant while office spaces are full, and what impact will that have on banks holding mortgages and real estate investment portfolios? Hat tip Kamau
- Tororo cement of Uganda will construct a cement factory in Kitengela
- The Ministry of housing to construct 526 houses for civil servants in Ngara phase II
Awards & events:
- East Africa's most respected company crowned this weekend in Tanzania
- Bank awards by Thinkbusiness.co.ke to be awarded on 5th December
- Strathmore University hosts a microfinance seminar starting November 23
- An ICT outsourcing expo is being held at the safari park hotel from November 27.
Opportunities:
- Equity Bank: business growth & development managers, credit managers, archives & record manager. Details online. D/L is 30/11
- Ernst & young: managing director E&Y advisory services ltd (EYAS) details online. D/L is 7/12
- ICPAK: business & professional development officer. Apply to icpak@icpak.com by 30/11
- KTN TV onscreen positions - full & part time. Apply to screen@eastandard.net by 23/11
- KTDA; General manager trading, head of strategy & planning, Network administrator, treasury & trade finance officer, marketing executive. Apply to recruitment@ktdateas.com by 26/11 -
Thanksgiving Portfolio
» bankelele Earlier: Thanksgiving 2006 portfolio
The Stable
Diamond Trust
Express
ICDCI
KCB
Scangroup
Sameer
Stanbic (UG)
Total
* Uchumi (suspended)
What's changed?
In: ICDCI
Out: None
Increase: Diamond Trust (rights), Scangroup
Lightened: KCB
Dividends expected: no interims
Unexpected gains/losses:
New listings not taken on: Kenya Re
Best performer: Stanbic (Ug)
Worst Performer: Total (though the dividend is assured)
Looking forward to: none really. I sat out of the Kenya Re IPO, and then didn’t really want it after the shares listed - maybe next year. Same with the Safaricom IPO which is getting dangerously close to the election, but which I expect to sit out again and instead give the money I have to some candidates (2 parliamentary, 1 civic) toward election expenses.
Lessons learnt: (i) you should not try and time trades e.g. company books for dividend close on Thursday, so you try and buy shares on Tuesday – just won’t work; think and trade long term (ii) attempts to buy low and sell high by setting a price based on yesterday’s high/low also won’t work; so think long term and don’t worry about intra-day prices
Performance Summary: The Motley Fool advises that investors should beat the share index to consider their returns a success. The NSE 20 share index is up 1% in the last six months while my portfolio is down 0.7% from May 2007. The actual share holdings are up about 13% but with the cash taken out from when KCB shares sold, the net position is down. -
3rd Anniversary: Idea Exchange
» bankelele It’s almost the third anniversary of this blog (started in November 2004) and it’s time to reflect on the 800 or so posts that appear here. It’s been great channeling everyday stories and knowledge and new, finding obscure pieces in the Kenya Gazette or the classifieds and building something worthwhile to write about. Also, some posts have been obscure, trivial, and forgotten a day after.
Now there’s a support group of other financial bloggers (see the blog roll to the right) to spread the financial word as well as the Business Daily which has been a great resource for me over the last year - and I truly enjoy it though I question its long term viability.
Dear readers: Idea exchange
This is also a chance to improve going forwards and readers are invited to offer their suggestions;
- Why do you read this? What do you hate?
- What topics would you liked to see covered more? Or less? As long as there are shillings involved, it’s worth blogging about.
- Do you like the design? Go back to black?
- More posts or less?
- What features, enhancements, tools, can be added to enhance the information and participation at this blog? Digg etc?
- What blogs would you like to introduce here? Preferably financial, social, or economic with an African or development focus
- Would you like to advertise or collaborate on an idea? Remember this has been an one man shop with full time social, family, and work activities
- Any other ideas? Comment her or drop a line via the contact page -
Financial Friday
» bankelele Earlier results showed that tax collection is not profitable, but neither is dealing with the strong shilling.
The Central Bank of Kenya year ended June 2007 shows the bank recorded a 386 million shillings loss down from a 4.5 billion profit in 2006. This was largely due to a forex loss of lost 9.8 billion shillings as the shilling remained strong against the US dollar, Euro and Sterling pound.
How much currency is circulating in Kenya? 90 billion shillings ($1.34 billion), in currency up from 76 billion in June 2006.
Bank in law
You don’t start a marriage by locking out the in-laws, but that’s what’s happening with CFC Stanbic as CFC stockbrokers have suspended trades in Stanbic Uganda shares to clear up a backlog of orders.
Shares vs. Holiday vs. Election expenses
The much anticipated Safaricom IPO edges into danger zone as the IPO could be pushed back to start on December 10th, not the 3rd.
Hedge funds to Africa
There was the Equity - Helios deal announced this week.
Another prime opportunity would be for a hedge fund to invest in Transcentury
PSD blog puts the new investment interest in Africa in a historical perspective with China and other Asian countries recognizing an opportunity to stake out the long term
Hedge Funds a year ago -
Equity goes Giga
» bankelele The story of the day and probably going to be the deal of the year (trumping CFC/Stanbic merger - which while being 6X larger, is not really foreign direct investment - FDI into Kenya) is that Equity Bank is selling a 25% stake to Helios Investors - (official). The deal to sell 90.5m new at shares 122 shares ($1.80) will bring in about 11 billion ($160 million) in new capital to the Bank.
When last months’ post discussed local banks needing
to raise capital a deal of this size was not in the picture. With the new capital Equity will be able to do business up to 150 billion shillings (about
where Barclays is today) – but that growth cannot be organic, so you can look to Equity to buy up a half dozen smaller banks.
Other shareholders must approve the deal in which their stake will be reduced. Fortunately for top managers they will retain their stake while falling under the 5% CBK limit for managers.
Others
- Diamond Trust opens a Branch in Malindi: Way to go after those Italian
accounts
- NIC Bank to buy a stockbrokerage firm.
- Safaricom data costs up: Bamba net a USB modem service was introduced in August 2007 at a cost 6,000 shillings to connect and 2,000 ($28) per month for unlimited net usage up to 700MB then 10 per MB thereafter. Now a new one costs 12,500 and 12.6 per MB after 8,000 shillings worth of free internet.
Opportunities
Joint Voluntary Agency - Financial Comptroller Position: The Joint Voluntary Agency (JVA) operates a US refugee resettlement program in
eastern and southern Africa through a Cooperative Agreement with the Department. It is seeking a Financial Comptroller position (chief accounting officer for JVA Kenya)
Requirements: Professional Certification in Accounting such as CPA, ACCA or equivalent, Bachelor's degree in commerce or business administration with
specialization in accounting, Four or more years work experience in the NGO sector at management level with supervisory duties, among others. Interested and qualified applicants should submit a cover letter and a résumé by November 20, 2007 to the
Human Resources Manager - hr@jvakenya.org
advertise your job postings here- but preferably only for companies that enable online or e-mail applications
Also
- Capital Markets Authority: Chief executive, Manager legal affairs, National Bank of Kenya - deputy managing director. apply through Hawkins
associates by 27/11
- Nairobi Stock Exchange; head of legal & compliance. apply through Deloitte -
CFC-Stanbic Bank EGM: merger approved
» bankelele An extraordinary general meeting to approve the CFC – Stanbic merger was held on November 12 at the Intercontinental Hotel
Deal: Stanbic is the largest bank in Africa with a presence in 18 Africa countries and 21 others around the world (including Bank of America in Argentina which they just bought). It has asset of $140 billion and 43,000 employees – and by combining their (relatively) small Kenyan operation with CFC, they will become the 4th largest bank in Kenya.
Approval got: CMA, CBK, monopolies commission
Approval to be got: shareholders, SA reserve bank, NSE
Deal should be complete in about a month
The meeting was led by CFC Chairman Charles Njonjo. Fellow director J. Kierini introduced the board and, other dignitaries present who including D. Ndonye (Deloitte), Jimnah Mbaru, Kaplan & Stratton advisers, and Craig Bond and a team from Stanbic include his son who works at Stanbic Kenya.
CFC MD Soundararajan explained rationale for the merger - synergies, very similar and complementary customers, regional opportunities, and enhanced capital adequacy. Customers will get a one stop shop for all their business, staff get to work in a bigger bank with more careers opportunities (and all employees are assured of retaining their jobs).
Shareholder questions
Dilution of minority shareholding? : Management said they are getting into a bigger entity
Are major shareholders bailing? : Gambit will get paid in new shares but also about 5.8 billion shillings. MD answered that shareholders are staying and the company is not going anywhere
Mgmt. afraid to say that CFC being ; Management says it’s a merger, as it is not a sale, new entity will have 40% CFC and 60% Stanbic shareholders
if CFC is growing well, why sell? Need for capital is important. MD said that he needs about $100 million, while new entity will have around $60 – 70 million. Merger will enhance the company’s growth plans
Due diligence on Stanbic? ; Done and they shared strategies which each other to see if they were on the same path. Also board member (and lawyer) Fred Ojiambo denied that a 25 billion shilling lawsuit had eroded the value of Stanbic (K) saying that claim had no firm base
Why no bonus shares instead of selling out?: MD said CFC had in the past given the largest bonus divided in the history of NSE 21 for 1 and the board will consider that at the right time
This is it: The historic moment passed in a flash as the Chairman proposed that all six resolutions be passed in a single vote since they were all interdependent.
The resolutions passed in a single vote;
- Created 117 million new shares to accommodate Stanbic
- Empowered the directors to allot shares to Stanbic
- Changed the name of the company to CFC Stanbic Holdings
- Transferred the bank business (assets, liabilities, employees, creditors etc.) to Stanbic
- Amended the new articles of association
- Changed the business of the company from a bank to holding company
Now CFC Stanbic holding co to remain listed on the NSE while CFC Stanbic Bank will be a 100% owned subsidiary
Other speakers
Craig Bond: The Head of Stanbic Africa, said they got lucky in Kenya as the first bank they identified turned out to be the right partner offering great synergies; in Nigeria they have looked at 6 banks which have not panned out. He said that Stanbic which intends to be the ‘best emerging markets bank’ in the world had identified 3 countries that they intended to dominate in Africa – SA, Nigeria and Kenya where they intend to break into the top 2 (not remain #4), by rapidly expand branches in 2008
Commenting on the largest bank in the world ICBC buying 20% of Stanbic (it’s 70% owned by government of china) - he said China is coming to Africa in a big way for her resources, and it offered Stanbic cheap money with the promise to match them $ for $ in any investment in Africa
NSE Chairman Jimnah Mbaru said he was proud that the deal happened under his watch and confirmed that he expected NSE to approve the deal by end of the week. He looked forward to having a big institution with the capital to enable economy to meet growth goals in terms of resources. And finally called out to family owned companies to see what could happen if they transform themselves into institutions as the late Mr. Jani had done with his firm which was now merging with Stanbic.
There were further tributes to the late Mr. Jani who created the company in 1951 with a vision for into to partner with an international power house, MD Soundararajan and directors Njonjo and Kierieni for making the deal happen
Humorous moment: Chairman Charles Njonjo was sad that there were only ‘5’ shareholders present when the meeting started, but got happy as the numbers had reached about 100 by the time it ended. However it didn’t really matter as he had 45% proxies from Africa Liaison and Gambit while fellow director Kierieni had 30%.
Goodies: souvenir pen, umbrella, big lunch box with little food from intercontinental – (fanta, cake, apple, and bit of goat, chicken and sausage)
other news
Barclays launched tranche one of its bond - 1 billion shillings, maturing in November 2014.
Rwanda and Burundi to join the East Africa Development Bank once they subscribed via share capital
Equity Bank extends banking hours to almost match office hours; 8 a.m. – 4:30 p.m. on weekdays and 8 a.m. – Noon on Saturday
The National Housing Corporation is offering investors loans to build rural and peri-urban homes. The maximum loan amount is only 1.5 million shillings – and it’s advanced at 13% over up to 10 years
Sasanet investors want to notify partners, bankers, and other companies (including safaricom) that the company had not refunded investors their funds.
Urban transport gets more expensive as all the major transporters Citi hoppa, KBS and matatu owners start a blanket 10 shilling per ride fare hike to counter rising fuel prices
opportunities
Celtel territory sales executives (17). D/l is 16/11
IT manager at EA Cables. apply thru deloitte esd@deloitte.co.ke
Jamii telecommunications: account managers (3). d/l is 16/11
KBR various jobs in Iraq, Afghanistan pr Kuwait. But …
Madison: finance manager, senior investments manager
Microsoft: public sector lead account manager - public sector & education solution sales professional (business productivity), infrastructure consultant, MBA graduate
Head of ICT services - Standard Group. d/l is 13/11
Chief operating officer at Renaissance capital. apply to coo@rencap.com by 19/11 -
What about Shariah depositors?
» bankelele A glance at the latest report from the deposit protection fund, omits two Shariah banks licensed this year - (Gulf African and Family Community) from the list of institutions whose deposits are protected by the deposit protection fund (DPF)
A further reading of Islamic banking indicates that such banks guarantee depositors funds - but then don't all banks do that? -
LAG
» bankelele 
Interpreting a local American Gangster
Having watched ‘American Gangster’ over the weekend then spent a couple of trips around town with a major business player, you get to understand why a certain group of people with mundane jobs can get so wealthy.
It’s understandable how the police do it (roadside bribes), but you can also bodyguards, drivers, personal assistants (PA’s) and even secretaries to that list
They are not necessarily corrupt but they are around centre of power and power players and have a chance to observe. By working closely supporting business and political leaders, they are unique situated to be around when the big deals happen, know what major developments are taking place and are able to spot arbitrage opportunities before anyone else.
Focus on drivers: They are in the company of ministers and other business leaders who talk deals in the cars and over their phones. Like the Frank Lucas character (played by Denzel Washington) in the movie American Gangster, drivers/bodyguards their bosses to meetings and get to see secret deals/big investments develop made by their boss whether it’s a new block of apartments, factory or even a new mistress. They also overhear conversations between the boss and engineer/architect/banker who’s sometimes in the car or over the phone as the boss dashes to/from meeting these same people.
The boss may be buying a building, but his driver may buy a small piece of land in the area or drop a line to a distant buddy to make another small deal. They observe secrets and learn skills at the same time.
Also bosses are human and have a compulsion to brag and backbite like all the rest of us - discussing with their driver the merits or demerits of an ongoing investment, or whether the person who has just hung up is a genius or an imbecile.
So it’s no surprise when a driver retires, he often has a sawmill, matatu or two, and three pieces of land or buildings, with wives scattered all over the country to manage them
His boss never groomed him and he never waited for Christmas or when the bosses’ good fortune sparked a feeling of goodwill and generosity that made him throw some crumbs at his henchmen.
So the driver creates a mini-empire silently over time to cater for his/her retirement, completely legitimate and by one who uses an opportunity to the maximum. -
Diamond Trust; Rights Reloaded
» bankelele Pressure is on for banks to raise capital and Diamond Trust are back to ask their shareholders to chip in. In November 2006 they raised 735 million, and this time they are set to raise 1.6 billion ($24 million)
What has changed
Then ; Now
Nov ’06 ; Nov ‘07
New shares 15.5 million ; 23.3 million
Price 50/= ; 70/= (a 20% discount each time)
Ratio 1:8 ; 1:6 (1 new share for 6 owned)
Result: oversubscribed; ? (Likely to be the same)
cost of the offer
Budget:2006 offer - 41.6 million ; 2007 offer - 54.7 million
What costs more: :
Advertising - up 250% (2.5m)
CMA approval – up 104% (4m)
Placing commission – up 100% (24.5m)
Printing & postage - up 29% (9m)
Registrar & data - up 29% (3m)
Legal fees – up 16% (4m)
Costs less
NSE listing fees – down 436% (0.09m)
Reporting accountant fees – down 200% (2m)
Sponsoring stockbroker fee – down 50% (1.74m)
Unchanged
NSE listing fees (0.5m), PR activities (0.5m)
calendar
record date 16/10, rights start trading 2/11, last day trade rights 12/11, last date to pay for rights 27/11, new share trade 11/12, new share certificates 18/12. -
Bank Wars
» bankelele Equity vs. Barclays
Equity Bank is often cited as being what caused banks, especially Barclays Bank to change their focus. But is it true, or is Barclays expanding all over Africa not just Kenya, in terms of opening new branches and expanding into the retail sector.
political muscle: A recent editorial strongly defended Equity and it has also received strong defense from Government ministers whenever allegations have been thrown against the bank.
Equity has also not been shy in employing political muscle themselves. The delayed conversion of rival building society into Family Bank has been linked to Equity's influence and the bank was also instrumental suffocating pyramid schemes who grew to rival banks for deposits while ironically relying on banks for their massive fund transfers to/from investors.
Equity in 2008: Even if 2008 brings in a new government, Equity Bank should be ok. While the current government has been kind to Equity, giving it the space and access to market, environment to expand, Equity has been smart to use their access to Government to grow, without necessarily going to bed with the government. I.e. targeting government and parastatal deposits and banking business. Equity has expanded nationwide and has customers throughout the country and a positive image as a mwananchi bank. Think Kenol, not Mugoya for Equity next year, if the election follows the current polls
other banking briefs
Barclays bond: Barclays Kenya will issue a $75 million bond over 7 years.
Seem receptive, though their last bond to finance a mortgage business was scuttled by former finance minister who asked that the bank invest new money into Kenya, not borrow from the local market. That should whet the appetite for corporate investors who may be put off by the anticipated over-subscription (wasted funds, lost opportunity, delayed refunds) of a Safaricom IPO
But is Barclays parent in trouble? The global financial crisis has also taken done in the Citi (bank) CEO
Merger slows It's a shame that the CFC-Stanbic merger can be jeopardized by a frivolous lawsuit frivolous lawsuit. How does a 50 million shilling dispute balloon into a 25 billion shilling lawsuit for damages?
City Finance is expected to be taken over by new owners. Kenya's smallest bank should get a boost from new owners - as it is the only loss making bank so far this year. As at June this year, it had assets of just 510 million shillings ($7.7 million) in assets, deposits of of 131m, and loans 218m.
Collapsed banks update: Capital Finance and Pioneer Building Society are to be wound up while customers of Daima Bank will be paid another dividend
Bad loan relief?: The interest rates advisory centre offers loan and mortgage interest recalculation, financial cost assurance (overdraft, loan interest), in-duplum interest recalculation for the period (1/1/2001 to 31/7/2005) and informs its clients that that all bank charges from 1/11/89 may be illegal!
Though IRAC won against Housing Finance, bad debt relief may be a pipe dream for most, except for a few instances
Other corporate news
Keroche going into beer production after huge bill handed to them of unpaid taxes. This is the last thing that Kenya Breweries wanted to hear
The Minister for Finance has approve the takeover of Kobil Petroleum by sister company Kenya Oil Company Limited (Kenol). But Kobil is/was a Delaware corporation?
Fake sugar: Strange saga of a ship which arrived at Mombasa with contraband sugar already packaged in Mumias sugar bags – ready to go to store shelves. Packing sugar in their 'produced in Kenya' branded bags has been a key branding initiative by Mumias to differentiate it from imported sugar and seems to have worked, but counterfeiters can only be kept at bay for so long
Wananchi TV: convergence as Kenya's largest ISP wananchi is going into partnership with GTV to begin high speed cable and satellite TV all in one package.
Also mobile TV on phones : a few months ago, the bosses of Kenya Broadcasting Corporation were on TV from a golf tournaments talking about their plans for the rest of the year which included launching a new radio station and also coming up with the first news broadcast via mobile phones by September. (Read on - KBC is a shareholder in the local multichoice Kenya)
Opportunities
- A new Equity Fund in Kenya urgently looking for a financial systems engineer with banking experience. Apply to ndeman2@yahoo.com
- Apprentice to Africa. The Apprentice Challenge comes to Africa – with $200,000 in prize money
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