Feb 23rd 2015

Radar Screen Ideas & Debate Life
Future of solar lies in Like Schiphol Airport, JKIA Top selling principles for
pay-as-you-go investments too can be key driver of our all seasons and deals
Page 3 economic growth Page 13 Page 27
NO. 2037 MONDAY, FEBRUARY 23, 2015 WWW.BDAFRICA.COM KSH60 | TZ SH 1,700 | UGSH2,700 | RFr900
Billionai≥es pump big money COUNTY BUSINESS
into fast-g≥owing milk ma≥ket

Deepak Kamani BY VICTOR JUMA
becomes the Billionaire investors are queuing to pump big

money into Kenya’s dairy industry, attracted
MPs want part
latest entrant with by a rapidly expanding market whose size is
expected to more than double in the next 10
years.
of Sh1bn village
polytechnics cash
plans for a factory Deepak Kamani, the chairman of conglom-
erate Zuri Group and the man at the centre of
Pages 12 »
Deepak Kamani. FILE Alhaji Aliko Dangote. FILE Naushad Merali. FILE
in Nyandarua long-running Anglo-Leasing
financial scam, is the latest DAIRY, Page 4»
Helb e≥ects new hu≥dle fo≥ UP IN FLAMES

g≥aduates in job ma≥ket
BY DAVID HERBLING
Kenyan graduates who got govern-

Sh3,000
Amount firms are fined every
ment financial support for their uni- month if they do not disclose that a
versity studies will soon require the worker is a past Helb beneficiary
Higher Education Loans Board (Helb)
clearance to qualify for employment
with private companies, proposed sector is one of the strategies the
regulations aimed at reducing stu- agency is pursuing to enhance loan
dent loan defaults say. recoveries.
Helb chief executive Charles Ring- Currently, only those seeking
era said the agency was working with employment in government are re-
the Federation of Kenya Employers quired to get Helb clearance indicat-
(FKE) to develop guidelines that ing whether they are servicing or have
would require employers to screen completed repaying their loans.
new employees for student loan clear- Those seeking employment with
ance when hiring them. national and county governments and
“We are working with the FKE to parastatals must also get clearance
develop regulations that will ensure from the Kenya Revenue Authority
employers comply with subsection (KRA), credit reference bureaus as
16 of the Helb Act and in line with well as the Directorate of Criminal
Chapter 6 of the Constitution,” said Investigation. A police vehicle burns after Moi University students went on the rampage to protest the rape and death of a
Mr Ringera, adding that clearance In recent years,
ELDORET Third Year student who lived off-campus, yesterday. COPPERFIELD LAGAT
before employment in the private many applicants for HELB, Page 4»
Steel, cement prices Profit warnings from NSE inches toward Kenya shilling best
NEWS INDEPTH cut on low energy cost NSE-listed firms rise to 12 seven-year high performing in region
BRIEFING
Steel and cement manufacturers Profit warnings from companies Nairobi Securities Exchange (NSE) The shilling has gained on its East
Top TV stock-picker have joined food processors and listed at the NSE for their 2014 is edging towards a seven-year African peers to emerge the best
leads onslaught of long-distance buses in cutting performance have increased to high largely lifted by Safaricom performing regional currency so
class action suits prices as pressure mounts to a record 12, signalling a dividend which on Friday set a new all-time far this year helped by a wider
against acquisitions transfer benefit of low energy drought and share price erosions. trading peak of Sh15.50. export base and strong investor
Pages 16-17 » prices to consumers.Page 5» Page 8» Page 19» inflows.Page 20»
2 BUSINESS DAILY | Monday February 23, 2015
TOP NEWS
DON’T MISS PAGES 27-31

Index to companies
Major companies cited in today’s issue of the
Business Daily
Seeking staff solutions
HELB 1 Nairobi
Kenya Private
LI E
New KCC 4
Sector Alliance
Brookside 4 director Patrick
Obath (left),
Devki Group 5
the African
KAM 5 Management
Initiative
Transcentury 7 CEO Rebecca
Harrison and
Crown Beger 8
Pewins Cabs
EAPCC 8 MD Justus
Murithi during
MONDAYS - PERSONAL FINANCE
CMA 8 a meeting
for CEOs on
Telkom Kenya 8
practical and
Emirates 10 affordable
approaches
Delta 10 to training
and employee
YouTube 10
performance, at
EPZ 12 the Serena Hotel
last Thursday.
NSE 19 SALATON NJAU
CBK 19
Co-op Bank 19
Orascom 20 What is making news this week TUESDAYS - CONSUMER
Week ahead Orange Kenya and partner month of February. The inflation rate
launch solar product was on a downward trend to 5.53 per
EAST AFRICA WEATHER Monday, February 23, 2015 Orange Kenya and Green Light Planet cent last month from a high of 8.36 per
TODAY will partner to provide solar lighting to cent in August last year.
Court rules on controversial Kenyan homes in areas that have no or The recent drop in electricity and fuel
clauses in the Security Act limited access to electricity. prices is expected to further pull down
The High Court will rule on the The partnership is expected to be the cost of goods.
constitutionality of eight clauses similar to M-Kopo which is backed by
which had been suspended in the new Safaricom. Portland Cement holds
Security Act assented to by President Buyers of M-Kopo solar products pay annual general meeting
Uhuru Kenyatta last December. in small daily instalments through M- Mr Bill Lay will chair his first annual
The ruling was to be made on Friday Pesa. general meeting of listed cement
but the judges were yet to finalise on it. maker East African Portland Cement. WEDNESDAYS - HEALTH
CFI hosts economic debate Last year the meeting turned chaotic
Tuesday, February 24, 2015 for investors and public forcing Capital Markets Authority
East Africa : forecast The Certified Financial Institute, to cancel minutes submitted by the
NIC bank launches East Africa chapter, is set to host an board.
Nairobi Kampala Dar es Salaam leasing business unit economic meeting to offer a platform The government, majority shareholder
Mon 28°C 30°C 33°C Listed mid-tier bank, NIC, will be for investors and the public to debate at Portland, accused the management
Tue 28°C 28°C 32°C launching a new business arm, NIC various investment opportunities of creative accounting and breaching
Wed 30°C 28°C 32°C Leasing LLP. available in East Africa. corporate governance rules. The
The bank is looking at tapping into the The session will be facilitated by election of Mr Lay as chairman, who is
growing business of renting capital among others, Joseph Kieyah of backed by the government, was one of
assets, especially with the government Kippra, Chris Vroom, an expert on the issues that caused friction in the
embracing the practice. derivative markets, Paul Mwai of Afrika company.
Investment Bank and Donald Ouma Two weeks ago Portland said it would
Wednesday, February 25, 2015 from the Nairobi Securities Exchange. not pay out a dividend approved
by shareholders during the chaotic
Residents of Upper Hill Thursday, February 26, 2015 meeting.
THURSDAYS - INNOVATION
meet roads authority
Residents of Upper Hill in Nairobi will CFC Stanbic releases Saturday, February 28, 2015
meet officials of the Kenya Urban full year results
Roads Authority (Kura) to receive Listed lender CFC Stanbic will release Comesa’s sugar quota for
www.bd africa.com an update on road completion in the its financial statements for the year Kenya comes to an end
business area. ended December. The bank is one of Protection given to Kenyan sugar
Follow your favourite Construction work in the area has six classified as large lenders by the companies from cheap imports
stories online, plus more on taken over three years, causing huge Central Bank of Kenya, the industry from other Comesa countries will
markets, industry, policy and economic losses to residents and regulator. expire, opening the sector to new
agribusiness businesses. Upper Hill was rising fast competition.
as a new business hub for the capital Friday, February 27, 2015 The government has applied for a two
FIND US ON FACE BOOK & TWITTER
as businesses sought to evade the year extension arguing that the local
businessdailyafrica crowded Central Business District KNBS releases inflation industry will die because it is not ready
but the incomplete road work has figures for February for the competition. The application is
frustrated many. Kenyan National Bureau of Statistics yet to be approved. The protection has FRIDAYS - WEEKEND
BD_Africa will announce inflation figures for the previously been extended four times.
Monday February 23, 2015 | BUSINESS DAILY 3
TOP NEWS
RADAR SCREEN ERNEST CHITECHI
ELECTRICITY : Answer to Kenya’s power woes lie in launching more products for low income earners paid for in instalments
A solar-powered LED lamp. For the majority of Kenyan households, the high cost of available solar lighting solutions pushes it out of their reach. FILE
Futu≥e of sola≥ lies in pay-as-you-go investments

K
enya’s position astride the tially look cheap, cumulatively, these and awareness of solar products in SunnyMoney partnered with Angaza Their marketing costs are minimal
equator puts it in the most households spend about 15-25 per the schools they teach. Design, a technology company that and optimised as they combine radio
favourable position to lead cent of their income on lighting. The teachers then market solar provided the technology and the plat- advertisements and word-of-mouth.
the ongoing race to harvest and use Besides, the smoky fumes emit- lights to parents who want to invest form that enables remote operation The average customer often tells 20
solar energy. ted by kerosene lamps are not only a in their children’s education by pro- of the solar light. of their friends about their purchase
Because of its location alone, Ken- health hazard, but also affect the en- viding a clean lighting solution that The marketing pilot showed which generates interest across the
ya receives an average of 4.5kwH of vironment. It is estimated that one will help them do their homework promising results with a few adjust- community.
sunshine every day raising its poten- lamp emits up to 200kg of carbon after sunset. ments made to the model to incorpo- This sparks the market conditions
tial for using solar for lighting. Efforts dioxide, the second biggest cause of SunnyMoney’s innovation unit rate learning from the trials. needed for local shops and independ-
to tap this renewable source of energy global warming. has designed a distribution and SunnyMoney is now testing a dif- ent agents to sell a range of solar lights
has intensified in recent years as the Yet the reality is that only 20 per marketing model that mimics the ferent payment structure allowing at a fair price thus boosting their in-
world grapples with the threat of glo- cent of Kenyans have access to elec- kerosene-buying habits people in more flexible payment solutions like comes, keeping money in the local
bal warming. tricity, and only seven the lower income bracket. monthly and daily instalments. economy, and encouraging others to
Solar energy has be- per cent of those liv- In the pay-as-you-go model the so- This flexible mode of payment has enter the market too.
come the subject of in- ing in rural areas are lar lights get activated when a cash so far been piloted in Kenya where Solar lights are already trans-
tense scientific research
and billions of shillings Only 20 pe≥ connected to elec-
tricity, according to
or mobile-money payment is made
and they get locked when they run
at least a thousand households have
made the shift to a clean lighting
forming the continent. When a fam-
ily buys a solar light they can save up
have been pumped
into the sector to make cent of Kenyans the World Energy
Outlook 2014.
out of credit.
This way, the customer can switch
solution.
The company plans to replicate
to Sh7,000 a year (which often repre-
sents a large portion of their income),
it more affordable and
therefore more accessi-
have access to In the 93 per cent
rural households
to the clean and safe solar lighting
technology at a fraction of its upfront
the success of the pay-as-you-go
trials with similar projects in even
and the money saved is used to meet
other needs or invested.
ble to a larger segment of
the world’s population.
elect≥icity with no electricity,
children have to fin-
cost, benefiting from a progressive
and affordable repayment.
poorer regions, such as Malawi, and
also work with other partners to
Children are also able to study for
an extra hour each evening. Over half
Yet for the majority ish their homework On purchase, customers pay a extend the pay-as-you-go product of families see an improvement in
of Kenyan households, before nightfall. small deposit of Sh100 to Sh200 to range, to include phone charging their health, freed from headaches
the cost of available so- Those who can receive a pay-as-you-go solar light solar lights and possibly large solar and eye strain, and many report a
lar lighting solutions re- afford kerosene use with one week of light credit included. home systems. better quality of life with more time
mains too high, blocking the dim lamps that Every week the customer completes SunnyMoney’s innovation unit is to spend with their family after
their access. emit smoky fumes another payment of Sh100-Sh150 to still focused on increasing the afford- nightfall.
The little income that cause respira- pay for another week of light. ability of solar lights through product The United Nations has declared
earned first goes to food, clothing tory infections and eye strain. After eight to 10 weeks, the pay- financing like through savings and 2015 ‘The International Year of Light.’
and shelter taking clear energy to But now there is a solution from as-you-go solar light is fully paid off credit cooperatives and micro-finance One of the areas of focus is ‘study af-
the bottom of the list where luxury SunnyMoney, a social enterprise and it will not require any other institutions, and implementing recy- ter sunset’ where the use of portable
items belong. founded in 2008 by SolarAid to payment. cling systems to help minimise the solar-powered high-brightness LED
Most low income households are eradicate the use of kerosene lamps SuunyMoney first sold the pay-as- environmental impact of end-of-life lanterns will be promoted in regions
therefore condemned to purchasing in Africa, through trade and not aid, you-go solar lights in Kenya in Janu- products. where there is little or no reliable
small amounts of kerosene to light up by 2020. ary 2014 in Machakos after receiving Using a different distribution source of lighting.
their homes for a few hours before SunnyMoney distributes pico- funds to test the viability of the mar- model, SunnyMoney has a network
retiring early to bed. solar lights in rural East Africa and keting and distribution model from of almost 200 active dealers across Mr Chitechi works for Climate In-
Although using kerosene may ini- works with teachers who build trust the Kenya Climate Innovation Centre. more than 10 counties in Kenya. novation Centre (CIC)
TOP NEWS
Investo≥s plan to
pou≥ billions into
dai≥y indust≥y
»From Page 1 deep-pocketed inves- remains dominated by the informal
tor to target the dairy traders.
market with plans to build a fresh and Bobby Kamani, the CEO of Zuri Mr Eliud Kemboi receives milk at the Abai Farmer’s Co-operative Society in Cheptiret, Uasin Gishu last year. FILE
powdered milk plant in Nyahururu. Group, said his company’s decision to
Mr Kamani follows in the footsteps go into milk processing is informed by the processors operate higher margins amidst business disruption, deep units expected entry into the local dairy
of Africa’s richest man Aliko Dangote of the quest to diversify from its core activi- after forcing farmers to cut prices sig- certainty, and massive job losses that business.
Nigeria who has announced plans to set ties in the hospitality, floriculture and nificantly. Nixon Sigei, the chief execu- slowed economic growth to a paltry Brookside, which produces fresh
up a factory in Kenya to produce dry milk real estate development sectors. tive of New KCC, said higher volumes 1.7 per cent. milk and yoghurt, is set to expand its
for local and export markets. Industry data shows that processors result in bigger margins as economies The 2008 annual growth rate of 1.7 products and regional presence after
The upcoming ventures are expect- of fresh milk can expect gross margins of of scale apply. per cent represented a deep plunge the deal with Danone.
ed to intensify competition in a sector between 15 per cent and 20 per cent. “Kenya is a volume-driven market and from the previous year’s 7.1 per cent The firm, which has built up an esti-
that is dominated by Brookside Dairies Major dairy firms like Brookside bigger players take the larger margins,” that pushed the intake of processed mated 40 per cent market share after a
– the country’s largest milk and New Kenya Co-opera- Mr Sigei said, adding that while fresh milk to an all-time high of 423 million string of acquisitions, is the largest dairy
processor that is control- tive Creameries (KCC) make milk is the most popular dairy product, litres at the time. firm with annual sales of Sh15 billion.
led by the Kenyatta family a net profit of at least Sh13 others like fermented milk and yoghurt The majority of Kenyans, however, While rising incomes are expected to
Kenya is a
– which has been tightening from every litre of milk they trade with the highest margins of up to still buy raw milk from farmers or mid- boost demand for dairy products across
its grip of the sector with a volume-d≥iven buy from farmers at Sh38. 30 per cent. dle men who hawk the product at much the board, the entry of more players is ex-
series of acquisitions in the ma≥ket and Wholesale prices stand Consumption of processed milk rose lower prices. pected to increase competition that will
past five years. at an average of Sh88 per to a three-year high of 541.1 million litres Increased urbanisation and higher see firms leverage pricing and product
bigge≥ playe≥s
French food group litre, taking retail prices last year, having peaked at 549 million economic growth are expected to grow quality to gain market share.
Danone last year acquired take the la≥ge≥ to Sh96 per litre after the litres in 2011. the ranks of the population with the fi- Other big players in the dairy mar-
a 40 per cent stake in Brook- ma≥gins retailers have added their Official statistics show that pack- nancial muscle to consume packaged ket are Githunguri Dairy Farmers Co-
side and announced plans to trading margins. aged milk consumption rises and falls dairy products, an outlook that is attract- operative and Sameer Group – headed
help the company expand its NIXON SIGEI, Farm gate prices of milk in step with the performance of the ing new investments to the sector. by billionaire investor Naushad Merali
product portfolio and reach NEW KCC CHIEF EXECUTIVE have risen recently to about broader economy, highlighting the fact Mr Bobby Kamani said Zuri was un- — which acquired the Daima milk busi-
in East Africa. Sh40 per litre in the wake of that rich and middle-income households dertaking feasibility studies with the help ness from Adarsh Developers.
Rising interest in the processed milk persistent dry weather in producer areas in urban areas are the major targets of of Dutch consultants to guide its entry [email protected]
business is seen as preparing the players such as Nyandarua. dairy firms. in the dairy market.
for an anticipated leap in demand for the “The market has reacted, within the Intake of processed milk hit a low Details of the plan, including capital
commodity, driven by rapid urbanisa- realms of the supply and demand curve, of 398.5 million litres in 2008 when the expenditure, production capacity, and FOR MORE ON
tion, population and incomes growth. causing an upshot in retail prices,” John combination of post-election violence expected date of commissioning the THIS STORY
Milk processing also presents big Gethi, the general manager at Brookside, and the global financial crisis saw a ma- Nyahururu plant, will emerge from the SCAN THIS
businesses with the option of diversify- said in a statement. jor reduction in spending by companies market research. CODE OR LOG
ing into one of the most lucrative fast This means dairy firms make the and households. Nigeria-based Dangote Group is ON TO
moving consumer goods market that most money during rainy seasons when The fall in aggregate demand came working on similar details ahead of www.businessdailyafrica.com/23022015
Helb wants jobseeke≥s to be sc≥eened fo≥ loan clea≥ance

»From Page1 public jobs have servicing their loans after the one-year sponsored students (commonly known fundraising activities to meet rising de-
been kicked out of grace period upon graduating. Helb loan recovery (Sh, Bn) as the parallel degree students) in public mand for student loans.
interview rooms after failing to produce Mr Ringera said the law binding pri- Agency wants private firms to demand universities as well as those enrolled in The presidential task force on par-
Helb clearance certificates. vate sector employers to demand clear- Helb clearance when hiring staff as it private chartered universities. astatal reforms said the aim is to “trans-
A selection panel set up to estab- ance certificates from Helb before hiring tightens the noose on defaulters Treasury secretary Henry Rotich al- form Helb into an educational develop-
lish the Independent Electoral and new employees is expected to take legal Sh located Helb Sh4 billion in this year’s ment finance institution for financing
Boundaries Commission, for instance, effect immediately Education secretary 3.2Bn budget and the agency had recovered higher education with the interest on
Sh
disqualified lawyer Isaac Mutoka Shiv- Jacob Kaimenyi publishes the new regu- Sh3.2 billion by June 2014 for a total of loans retained at current levels and re-
1.9Bn
achi in 2011 from pursuing employment lations in the Kenya Gazette. Sh7.2 billion, barely a half of the Sh14.3 views approved by Cabinet”.
with the agency for failing to repay his The new provisions are meant to billion the agency needs to meet total In the current financial year, Helb
Helb loan. make Helb comply with Chapter Six of loan demands by students. has disbursed Sh6.2 billion to 144,580
Job seekers have to pay Sh1,000 to the Constitution – which provides guid- Mr Ringera said total loan applicants undergraduate students and another
get the clearance certificate from Helb, ing principles for governance – meet the nearly doubled to 110,000 last year from Sh153 million as bursaries to both un-
whether or not they benefited from the demands of the Leadership and Integ- 53,000 in 2013, a demand Helb is unable dergraduate and technical, industrial,
loan programme. rity Act. to meet at current financing levels. vocational and entrepreneurship train-
Private sector employees are cur- Helb has information sharing agree- “We are financing only 30 per cent of ing students.
rently not required to present Helb ments with the KRA, the National Hos- the students depending on their vulner- About 75,498 graduates owe Helb
clearance certificates before employ- pital Insurance Fund and the National SOURCE: HELB ability,” said Mr Ringera. Sh8.3 billion. A total of 88,520 graduates
ment but firms hiring graduates have Social Security Fund that it uses to track The number of universities has also have fully repaid loans worth Sh8.2 bil-
to notify Helb upon recruitment. past loan beneficiaries. grown to 68, including 22 public univer- lion. Helb said Sh13 billion disbursed to
Firms are fined Sh3,000 per month The latest bid to tighten the noose on Demand for Helb loans has increased sities, nine public university constitu- 144,040 loanees have not matured while
for each defaulting employee if they do defaulters comes after Helb stopped ad- sharply due to the double-intake admis- ent colleges and 17 chartered private 98,676 beneficiaries are currently serv-
not disclose to Helb that their workers vancing internship loans to undergradu- sions policy in public universities that has universities. icing loans amounting to Sh14.4 billion,
are past Helb beneficiaries. ate students and reduced the maximum overstretched the agency’s resources. President Uhuru Kenyatta plans to translating to a performance rate of 60.7
Helb also levies a monthly fine of loan amount to Sh50,000 from Sh60,000 This is further compounded by the transform Helb into a bank and allow per cent.
Sh5,000 on all past beneficiaries not per academic year. fact that Helb also extends loans to self- the agency to float bonds as part of its [email protected]
ECONOMY & POLITICS

NEWS I REVIEWS I ANALYSIS
Cement and steel Electricity cost comparison

against fuel charge
Fuel cost charge has dropped from Sh7.22 per
manufactu≥e≥s
kWh in July to Sh2.53 in January. Industrial
electricity tariff has dropped 29.3 per cent to
Sh13.29 per kWh over the same period.
cut ≥etail p≥ices

ECONOMY Reduction is in line with a call to
pass benefits of dropping energy cost
Mr Narendra Raval, the chairman of Devki Group which owns National Cement and
BY NEVILLE OTUKI us room to reduce the prices since Devki Steel Mills. FILE
SOURCE: ERC
October,” said Narendra Raval, the
Steel and cement manufacturers have chairman of Devki Group, the parent per month before costs started falling cember, has dropped from Sh7.22 per
joined food processors and long dis- company of National Cement, which since last August on lower fuel prices kilowatt hour (kWh) in July to Sh2.51
tance buses in cutting prices as pres- manufactures the Simba brand. and injection of additional geothermal this month. A 50kg bag of Blue Triangle – a
sure mounts on other producers to Other subsidiaries in the group energy to the grid. The lower prices of the building brand of East Africa Portland Cement
transfer benefit of dropping energy include Devki Steel Mills and Maisha Most cement firms in the country materials bode well for property de- – retails at about Sh640 down from
prices to consumers. Mabati Mills. The new ex-factory ce- rely on electricity to fire their plants, velopers and the government which is Sh660 last year in Nairobi while a simi-
National Cement has cut the ex-fac- ment prices are the lowest since they but several have indicated plans for a undertaking or planning to build key lar bag of Savannah Cement goes for
tory price of its Simba brand by Sh25 averaged Sh645 a bag last January switchover to coal-fired plants citing infrastructure development projects Sh630 down from Sh650.
to Sh575 per 50kg bag – retail prices from a peak of Sh740 in 2009. high power bills. Electricity tariff for including a 10,000km road network Last week, long distance buses an-
vary depending on the location due Steel prices have also shaved 30.3 industrial consumers has dropped by and Lamu Port and South Sudan Ethio- nounced fare cuts of up to 26 per cent.
transport cost component. Steel, criti- per cent compared to last year when about 30 per cent in the six-month pe- pia Transport (Lapsset) Corridor. The price of a two-kilogramme packet
cal for supporting structures, is priced they stood at $1,020 a tonne. Mr Raval riod, according to the energy regulator. Official data shows cement con- of maize flour has also dropped 22 per
11.2 per cent lower at Sh64,865 ($710) said the company had experienced Fuel surcharge, eased by the injection sumption rose 6.9 per cent to 4.2 cent to Sh85 on average compared to
per tonne. “some” reduction in its power bills of 280 megawatts of geothermal power million tonnes in 2013, driven by in- December.
“Lower energy bills have given previously standing at Sh65 million to the grid between August and De- creased construction projects. [email protected]
KAM ≥ules out fu≥the≥

≥eduction in cost of goods
BY EVELYN SITUMA
The Kenya Association of

Manufacturers (KAM) has
ruled out full-scale reduction
in commodity prices saying to
do so, firms need six months of
fixed energy prices.
The business lobby asked
the energy regulator to con-
sider reviewing energy prices
only twice a year to create sta-
bility in the market. KAM chairman Pradeep Paunrana. FILE
“We need predictability. If
prices are fixed for six months, Data produced by the lobby in- watts of geothermal power.
we’ll be able transfer the ben- dicates that firms experienced The geothermal power
efit to the consumer,” KAM 50 per cent increase in the cost has cut bills by about 30 per
chairman Pradeep Paunrana of power between July 2013 and cent since August following
said even as he added that his July 2014. Between July 2014 the drop in the fuel surcharge
firms had cut prices. He is the and January 2015, however, from Sh7.22 per kilowatt hour
managing director Athi River there was 27 per cent decrease (kWh) in July to Sh2.51 this
Mining Cement CEO. in power price, bringing the net month. This benefit is what
At the moment, there is no change from 2013 to December the State wants businesses to
clear schedule for reviewing 2014 to zero. pass to consumers.
electricity prices while fuel “If costs are passed immedi- The tariff charged by Kenya
prices are adjusted by Elec- ately to consumers, the indus- Power was increased last year
tricity Regulatory Commis- try will be forced to absorb im- by Sh3.25, increasing the base
sion every month. pact of frequent fluctuations,” rate to Kenya Power by 11 per
“Fix pricing for six months, KAM said. cent in July 2014.
firms should be able to budget President Uhuru Kenyatta Manufacturers now want
at least this far in advance,” last week urged manufacturers the State to drive down the cost
reads a proposal that KAM pre- to lower the price of goods fol- of power further by reducing
sented to government last week. lowing the injection 280mega- the tariff .
ECONOMY & POLITICS

COUNTY BUSINESS
Team picked to set One-stop bo≥de≥

post in Malaba
≥ules on diaspo≥a ≥eady fo≥ use
voting in 2017 poll

BY ALLAN ODHIAMBO
Contractors have completed and

handed over the Malaba one-stop
border post to be shared by Kenya
ELECTIONS Task force to come up with guidelines and Uganda, paving the way for its
commissioning to improve trade
for Kenyans abroad to participate in electoral process flow between the countries and the
Great Lakes region.
BY LYNET IGADWAH force would pave the way for Kenyans The Works ministry in Uganda
living abroad to participate in the 2017 handed over the facility to the Ugan-
The Foreign Affairs ministry has set up General Election or any referendum da Revenue Authority (URA), raising
a 10-member team to draft guidelines organised before that period. hope for faster clearance of cargo.
on how the close to 600,000 Kenyans In the last General Election, Ken- “Innovations have reduced the
living abroad will vote in the next Gen- yans in the diaspora were barred from time needed to travel from Mombasa
eral Election. casting votes for their preferred pres- to Uganda. Initially, it required 18 days,
The task force, chaired by Foreign idential candidate following unpre- which have since reduced to less than
Affairs diaspora and consular affairs paredness by the Independent Elec- five days. The OSBPs (one-stop bor-
director Washington Oloo, has been toral and Boundaries Commission der posts) would dramatically reduce
handed a three-year re- (IEBC). clearance time,” Richard Kamajugo,
newable term to finalise Despite the 10th Commissioner for Customs said.
its work. Parliament passing The one-stop border post concept
The Kenya Gazette no- The costs incu≥≥ed rules to guide the is aimed at harmonising transit clear-
tice published by Labour by the committee... registration of voters ance, with two officers from border-
Cabinet secretary Kazun- abroad, the Cabinet ing countries sitting under one roof
gu Kambi said his ministry
shall be def≥ayed opted not to approve to handle transit documents concur-
would meet the task force’s f≥om voted funds the listing on realising A resident of Mathare in Nairobi votes during a by-election on August 11, last year. rently to save time.
expenses. of the Minist≥y that IEBC did not have The Foreign Affairs ministry has picked a task force to prepare rules for Kenyans in Currently, traders in the region
“The costs incurred by structures and mecha- diaspora to participate in the 2017 General Election. FILE are hampered by strenuous customs
the committee, including
of Labou≥, Social nism in place to facili- clearance procedures in which goods
but not restricted to facili- Secu≥ity and Se≥vices tate the process. other things, to advise on profiling Kanyiri, Scholastica Ndambuki, Den- are separately inspected by officers
tation and payment of al- KENYA GAZETTE NOTICE Aside from finan- of Kenyans in the diaspora who are nis Muhambe, Karen Rono, Kariuki on either side of the border leading to
lowance in respect of the cial and time con- eligible to vote. It would also estab- Kimemia, Immaculate Kassait and massive delays.
members and secretariat straints, the electoral lish the extent to which Kenyans Peter Oduge. The special border posts will in-
of the committee, shall be defrayed commission faced logistics chal- living abroad could “progressively Kenyans in the diaspora play a key clude Taveta-Holili border and the
from voted funds of the Ministry of lenges in conducting the massive participate in General Elections and role in growth of the economy having Namanga border (Kenya-Tanzania),
Labour, Social Security and Services,” exercise of registering voters locally Referenda”. remitted an estimated Sh1.3 trillion Busia and Malaba borders (Kenya —
read the notice. and abroad. Other members of the task force are in 2014 alone. Uganda) and the Kanyaru-Akanyaru
The guidelines prepared by the task The task force is expected, among Lucy Kiruthu, Gregory Somba, Joseph [email protected] border (Burundi-Rwanda).
Catholics ≥ejoice
Indust≥ies lose Sh500m on illegal nut expo≥ts
BY GERALD ANDAE ine processors to run out of sup- them to middlemen who in
ply, which has seen them cut turn supply the processors.
Kenyan macadamia processing down on employment as their Ms Kariuki said plans were
factories are operating at only production falls below capac- underway to enable major
54 per cent of their installed ity,” she said, adding that sur- processors to open buying
capacity amid rising cases of veillance had been intensified centres close to farmers during
smuggling of nuts that have to curb the illicit trade. the harvesting season to facili-
forced the industry to shed Last year, the government tate direct purchase from the
Sh500 million annually. revoked close to seven licenc- growers and stop exploitation
Official statistics indicate es of macadamia factories that About Macadamia by brokers. She said sealing the
that the 15 factories are cur- were found to be taking part in The crop occupies about 7,945 existing loopholes in the sector
rently processing 35,582 tonnes illegal export of the raw nut. hectares of land in Kenya. would boost productivity.
per year against a combined ca- The macadamia is the sec- It is mainly produced by small- Marketing of nuts has expe-
pacity of 65,000 tonnes. ond major cash crop in nuts scale farmers. rienced a number of challenges
“The demand for raw nuts category, comprising 27 per since the 1990s after the liberal-
has been on the increase but cent of the total nut produc- isation of trade, spurring com-
cases of smuggling has made it tion, bringing in Sh2 billion in The PS said the illegal trade petition between processors
insufficient to support the in- sales annually. also damages macadamia trees and exporters of raw nuts.
stalled processing capacity in Ms Kariuki said smuggling because it encourages stripping Currently, the Agriculture,
the factories,” said Agriculture hurts the local nut industry as of nuts from the trees contrary Fisheries and Food Authority
PS Sicily Kariuki. it lowers Kenya’s competitive- to international best practices Act prohibits the export of raw
Ms Kariuki said raw nut ness because the smuggled raw whereby nuts should be allowed cashew nuts, raw pyrethrum,
exporters evade paying taxes nuts do not adhere to qual- to fall down on maturity. raw bixa or raw macadamia
Mombasa Catholic faithful celebrate during the
installation of Archbishop Martin Kivuva
resulting in revenue loss every
year and cutting the available
ity requirements, while other The crop occupies an esti-
macadamia producers carry mated 7,945 hectares of land
except with written author-
ity of the Cabinet secretary is-
Musonde to the county Catholic Archdiocese at the Mombasa volumes to be processed. out best agriculture practices, and is mainly produced by sued with the approval of the
Stadium on February 21. KEVIN ODIT. “The move has forced genu- including traceability. small-scale farmers who sell National Assembly.
ECONOMY & POLITICS
Union wa≥ns of c≥isis as mo≥e docto≥s ≥esign Public school

BY ERIC MATARA general of the union in South Rift said Sh40,000 a month? Is this fair labour
teache≥s set to
Doctors have warned of a looming cri-
last year alone 1,800 doctors resigned
from the public sector citing poor pay.
practice?”
Dr Oroko said devolution of health
unde≥go special
sis in the public healthcare system as
a large number of medics protesting
“These are patriotic doctors who would
have liked to work with the govern-
services was done in a hurry, hurting
service delivery in the 47 counties. needs t≥aining
poor remuneration flee to private sec- ment, but the working conditions He said: “Most counties have zero
tor and foreign countries in search for were terrible and they couldn’t take knowledge on how to manage the hu- BY ANNIE NJANJA
greener pastures. it anymore,” he said. man resource in health sector with de-
The Kenya Medical Practitioners, The union official lamented about layed salaries, stagnated promotions, All 288,000 teachers are set to undergo
Pharmacists and Dentists Union cited persistent neglect of healthcare and unpaid allowances and harassment by special needs training as the Educa-
the meagre budgetary allocation to the said that the few remaining health members of county assemblies among tion ministry moves to end discrimi-
Health ministry as a top threat to serv- Dr Samuel Oroko (right) addresses the practitioners are overwhelmed with other frustrations.” nation against learners with disabili-
ice delivery. Press early this month. KEVIN ODIT the doctor to patient ratio standing The official said the inter-county ties in public schools.
“We have witnessed continuous at one to 17,000 as opposed to the transfers had become a nightmare with Education secretary Jacob Kai-
reduction in percentage of total GDP 2014/2015 Budget.” one doctor for every 1,000 patients doctors being forced to resign from one menyi said the ministry had embarked
(gross domestic product) allocated Of the Sh1.75 trillion Budget in the recommended by the World Health county to seek fresh employment in on a new programme to prepare pub-
to health (funding),” said chairman current financial year, only Sh47.4 Organisation. another devolved unit of choice. lic school teachers to handle all types
Samuel Oroko. “The Abuja Declara- billion was allocated to health, out of “We have had perennial underpay- He called on the government to of learners, including those with spe-
tion of April 2001 requires all member which only Sh2.4 billion was meant to ment of doctors in Kenya resulting in centralise human resource manage- cial needs. At the moment, children
countries to allocate at least 15 per cent pay doctors, clinical officers, nurses massive brain drain,” he said. “Why do ment and leave counties to manage with mental and physical handicaps
of total GDP to health. In Kenya we and other healthcare staff. you pay a doctor, who works 15 hours infrastructure and supplies to save the have to be isolated and sent to sepa-
are trailing at three per cent based on Dr Oroko who is also the secretary a day and 450 hours a month, only health sector from collapse. rate schools or classes.
“We want to ensure that children,
regardless of their physical capability,
learn from the same schools but this
can only start when we have teachers
BACKLOG Mutunga appoints 15 judges to determine 15,494 suits in five days starting today who can deliver adequately,” said Prof
Judicia≥y bets on
Kaimenyi last week.
The Cabinet secretary also said his
ministry was reviewing the school
curriculum to accommodate learn-
15 mo≥e judges to
ers with disabilities. “We are aware
that it is a challenge but the govern-
ment is on course to ensure that we
offer inclusive education and give all
clea≥ cases backlog

children a fair chance,” he said.
Under the ministry’s special needs
investment programme, the govern-
ment plans to disburse learning funds
and allowance to the special needs
BY SANDRA CHAO-BLASTO The Chief Justice wants the team teachers.
to handle all the cases which are older Chief Justice Willy Mutunga (centre) launches the Judiciary Case Audit and
Milimani Law Courts in Nairobi is than five years. Institutional Capacity Survey at the Milimani Law Courts on Friday. COURTESY Needy students
expected to be the scene of the lat- “Many of these cases are older than Prof Kaimenyi spoke last week at a
est ambitious experiment by Chief the new practising lawyers. Behind disputes speedily determined. among the judicial officers with each KCB Foundation event where the or-
Justice Willy Mutunga as he moves every pending cases are lives and prob- According to the 2014 Judicial Case expected to handle more than 1,600 ganisation announced it would spon-
to clear backlog of cases that have ably generations ruined forever and Audit and Institutional Capacity Sur- cases. sor 40 students with disabilities join-
chocked the legal system over the we must bring justice to them starting vey, there are 426,508 cases pending in It takes an average of 12.5 years for ing secondary schools for the first time
past five decades. from the oldest,” said Dr Mutunga. courts as at June 2013 with the magis- a case to be filed and a judgment de- since its inception.
A team of 15 judges that Dr Mutun- Among the 15,000 cases, 11 were trate courts and the High Courts car- livered at the High Court. KCB Foundation chairperson Cath-
ga appointed on Friday are expected to filed between 1960 and 1970, 39 cases rying the bulk of the unresolved mat- Appointment of the 15 judge team erine Kola said: “As a foundation, we
sit in the chambers of Milimani Law filed between 1971 and 1980 and 1,000 ters. The survey showed that while the under the Judiciary’s Justice@Last in- believe that every child has a right to
Courts from today with a target of between 1981 and 1990. High Courts had 74,695 cases pending, itiative is expected to reduce the back- education and that is why under our
clearing 15,494 pending cases in five The build-up of unsettled civil suits the Civil Division contributed close to log within the Civil Division by up to scholarship programme this year,
days. This means each judge would be at the Judiciary had been attributed in- half of these cases. half of the pending cases by Friday. we made an additional investment
under pressure to handle at least 215 adequate judicial officers and absence At the moment the High Court to support bright needy students
cases per day, up to Friday. of automated systems that would see judges bear the greatest workload [email protected] with disabilities to progress to sec-
ondary school.”
The scholarship covers tuition fee,
T≥ansCentu≥y t≥ains youth in counties to plug technical skills gap textbooks and boarding equipment for
the four years of study. The foundation
will spend Sh78 million on scholar-
BY SIMON CIURI ya Industrial Training Institution and drawn from the technical institutions Last year, the government estab- ships for 240 students this year.
Mombasa Technical College. that we are now seeking to partner lished the Technical Vocational Edu- The beneficiaries were drawn from
Power and infrastructure company Officials said a total of 120 students with,” said TransCentury group chief cational Training Authority to overall over the country based on overall
TransCentury Group has partnered admitted in the first phase of TTTP will executive officer Gachao Kiuna. see the management and growth of performance and financial need.
with the national and county gov- undergo a one-year training with the “We recognise that the deficit in technical training institutions in the To date, KCB Foundation has spon-
ernments to train hundreds of young participants securing both internship technical skills is likely to slow down country. sored 840 needy students to second-
people as it seeks to plug technical and employment at TransCentury after effective implementation of major It allocated Sh2.5 billion for the ary schools.
skills gap. the course work. projects, like Kenya’s ambition to de- construction of technical training Prof Kaimenyi called for public-pri-
The pilot project dubbed the Each of the four institutions will velop the recently discovered petro- institutes in every county which vate partnership to ensure adequate
TransCentury Technical Training produce 30 students. “As a key industry leum resource,” said Mr Kiuna. will see about 60 vocational centres investments were made in education
Programme (TTTP) will start at four player TransCentury Group acknowl- The group intends to expand the built across the country as the State sector. “I call upon all stakeholders to
local institutions; Kiambu Institute edges that there is an existing gap that programme to other East African moves to plug technical skill gaps play part in the building bright futures
of Science and Technology, Rift Val- needs to be addressed, driven by the states, mainly in areas where it has that threatens Kenya’s industrialisa- for children with disability,” said the
ley Technical Training Institute, Ken- fact that over 70 per cent of our staff are operations. tion ambitions. minister.
CORPORATE NEWS
Dividend d≥ought Radisson Blu

gets Ge≥man
looms as 12 fi≥ms manage≥ as
in p≥ofit wa≥ning opening nea≥s
BY DAVID HERBLING
INCOME Weaker results linked to competition A German has been appointed to

head the upcoming Radisson Blu
and mismanagement, among other reasons Brokers on the floor of Nairobi Securities Exchange. Earnings alert by listed firms Hotel located in Nairobi’s Upper Hill
stood at eight in the 2013 financial year, compared to 10 in 2012 and two in 2011. FILE district ahead of its planned opening
BY HERBLING DAVID besides suffering share price ero- in June.
sion. Pan Africa’s share price stood at of the NSE with banks expected to an- were among the listed firms which The Brussels-based Carlson Rezi-
Profit warnings from companies listed Sh105 on Friday, representing a 11 per nounce double and triple digit profit saw profits plunge by more than a dor Group, which owns Radisson Blu
at the Nairobi Securities Exchange for cent drop from Sh118 on Wednesday growth next month. quarter in 2013. Crown Paints cited Hotel, rated five-star has hired Jens
their 2014 performance have increased when it issued the profit guidance Most companies retain most of challenges in its subsidiaries in Tan- Brandin as general manager.
to a record 12, signalling a dividend while Crown Berger shed Sh23 over their earnings to fund new invest- zania and Rwanda for the expected Mr Brandin, a career hotelier, will
drought and share price erosions. the same period. ments and strengthen their financial fall in earnings. be tasked with setting up Carlson Rezi-
Earnings alert from the listed Other companies that have made position, with lower profits leaving “The drop is as a result of very chal- dor’s first hotel in the region and woo
companies stood at eight 2013 finan- similar warnings are Sameer Africa, even less cash to be distributed as lenging market dynamics for subsid- holidaymakers and business travellers
cial year, compared to 10 in Sasini, Williamson Tea, dividends. iaries in our expansion programme visiting Kenya to the facility.
2012 and two in 2011. Sasini, Kapchorua Tea Only a few firms, including ciga- within the region,” Crown Paints said “The key remit for this appoint-
The weaker performance and Transcentury. rette manufacturer British American in a notice. ment was to ensure we brought in
has been linked to a mix of
Only a few Mumias, East Afri- Tobacco, pay out their entire profits The company reported a net profit someone with not only great com-
increased competition, mis- fi≥ms, including can Portland Cement as dividends. of Sh213.84 million for the year end- mercial expertise but also a person
management, travel adviso- ciga≥ette Company (EAPCC) ed December 2013, meaning that this committed to other key elements of
ries, lower capital gains at and Rea Vipingo have Cooling off demand year’s earnings will be lower than the role such as people development,”
the bourse and falling prices
manufactu≥e≥ already published their Reduced earnings also have the effect Sh160 million. Mark Willis, vice president Middle
of agricultural commodities B≥itish Ame≥ican results after issuing the of cooling off demand for a company’s TPS Eastern Africa, which oper- East and Sub-Saharan Africa for the
like tea. Tobacco, pay out profit warnings. stock unless investors see it as a tem- ated hotels under the Serena brand, Rezidor Hotel Group, said in an inter-
Paints manufacturer The announce- porary phenomenon. blamed insecurity, Ebola outbreak view with the Business Daily.
Crown Berger is the lat-
thei≥ enti≥e p≥ofits ments mean some The Capital Markets Authority and VAT on tourism for eating into its Mr Brandin has worked with
est to make such an an- as dividends of the firms will post (CMA) requires companies to make earnings for 2014. Carlson Rezidor for about 16 years
nouncement after TPS losses or record sig- the disclosures to warn investors of the Pan Africa Insurance attributes in Germany, Ireland, UK and was the
Eastern Africa and Pan Africa Insur- nificant declines in their profits, a risks of capital losses and reduced divi- its projected dip in profits to reduced general manager at Radisson Hotel
ance Holdings. move that could lead to a freeze or dend as a result of the profit fall. gains from its portfolio at the NSE and Kaliningrad in Russia for nearly four
Investors in the companies that cut in dividends. The earnings alert Kakuzi, East African Breweries slower sales of properties and plots. years before his Nairobi posting. The
have issued profit warnings are set have come from firms listed at the Limited, Eveready, National Bank, hotel, is set on a two-acre plot.
to get lower or no dividend this year, commercial and industrial segment Centum, Total, KQ and KenolKobil [email protected] The incoming boss will have to
fight for market share with established
five star hotels in Nairobi including
The Tribe, Serena, InterContinental,
Telkom denies deal with Ugandans in Sh3.6bn suit

Villa Rosa Kempinski, Crowne Plaza
and Hemingways.
The Sh7 billion Radisson Blu Nai-
robi is owned by businessman Michael
BY BRIAN WASUNA ability of the copper smelting venture Telkom Kenya, which later pulled the Kairu backed by four Nordic private
before agreeing a contract. plug on the deal. equity funds namely Swedfund,
Telkom Kenya has denied signing a “Telkom Kenya denies that it guar- The smelter says it relocated its Finnfund, Danish investment fund
copper smelting deal that has seen a anteed to provide 6,000 metric tonnes smelter to Telkom Kenya’s Industrial IFU and Norfund.
Ugandan-based firm make a claim of of copper from decommissioned ca- Area premises in Nairobi after the two Mr Kairu holds a 58.7 per cent stake
Sh3.6 billion for breach of contract. bles and that there was any agreement had principally agreed on the terms in Elgon Road Developments Ltd – the
The telco denied having any knowl- that Kilembe would shift its smelters of the deal. The Ugandan firm claims special purpose vehicle behind the lux-
edge of a deal purportedly inked in of copper experts from Uganda to Nai- that only Telkom Kenya chief executive ury hotel – followed by Swedfund (21.3
2010 where the Ugandan company, robi,” the firm says. Telkom was offered was yet to sign the contract, hence it per cent) while Finnfund and IFU each
Kilembe Copper Smelters, was to smelt reprieve after High Court judge Fred An Orange Telcom shop on Koinange got the impression that the deal was have a 10 per cent stake.
more than 6,000 tonnes of decommis- Ochieng set aside a judgment that Street in Nairobi. FILE as good as done. Norfund does not own an equity
sioned cables, other metals and alloys awarded Kilembe a compensation “Based on good faith and the in the hotel but provided part of the
for export. of Sh1.8 billion. The firm protested which have been rendered obsolete by fact that Telkom Kenya had pro- €7.85 million (Sh811.8 million) loan
Kilembe reckoned that Telkom the judgment because it had not re- fibre optic technology that transfers vided Kilembe with space within its advanced to the project through Af-
Kenya refused to meet terms of the sponded to the suit, arguing that the data faster than copper cables. premises, Kilembe had no reason to rinord, a joint venture fund backed by
deal, adding that it only smelt a mea- one-year window for responses had The sale of the decommissioned believe that the Telkom CEO would four Nordic countries.
gre 150 tonnes worth Sh135 million, not lapsed. The Sh1.8 billion compen- cables is aimed at saving telcos from deliberately withhold his signature,” The 271-bed Radisson Blu Nairo-
even after relocating its factory from sation was linked to an alleged rene- leaving the equipment to go to waste said Kilembe managing director Tho- bi also features conference facilities,
Jinja, in Uganda, to Industrial Area, in gotiated contract between the Uganda after investing heavily in their acqui- mas Eggenburg. three restaurants, pool bar and grill,
Nairobi, on assurance by the Kenyan smelter and Telkom to deal in 2,000 sition. “After noting that Kilembe had outdoor swimming pool, spa, sauna,
operator of good business. tonnes of metal with an agreement to The Ugandan smelter told the court exclusively dedicated its time and re- fitness centre and an underground
The telco said it had no deal with share the proceeds on a 50:50 basis. that it relocated to Kenya following sources to the project, Kilembe was car parking with 800 spaces. Carlson
Kilembe, and that the Ugandan firm Telcos globally have been selling the re-negotiated deal and that it got requested by Telkom to recover the Rezidor Hotel Group plans to open
was first expected to establish the vi- their decommissioned copper cables, the required licences with the help of redundant underground cables.” a three-star facility dubbed Park Inn
located in Westlands, Nairobi .
CORPORATE NEWS
Unive≥sity of Eldo≥et VC says most staff f≥om Rift Valley

BY GERALD ANDAE maining positions are taken by executives for nearly half of its 207 permanent employ-
from the Rift Valley. ees, 20.2 per cent (western), 19.8 per cent
The vice-chancellor of University of Eldoret Nyanza accounts for 13.6 per cent of sen- (Nyanza) and 2.9 per cent (eastern).
has rebutted accusations that the institu- ior staff, Western 4.5 per cent, Eastern 4.5 The lecturers union on Friday called on
tion’s senior management is dominated by per cent and Rift Valley (77.2 per cent) the police to offer security to its members
her ethic community by releasing a report Senator Isaac Melly (Uasin Gishu) last at the university following an attack over
showing that 75 of the top officials are from week led a demonstration at the university the allegations.
the Rift Valley. to eject the VC, Teresa Akenga on allegations The organising secretary of the Univer-
The report released Friday shows that of corruption and nepotism, prompting the sities Academic Staff Union (Uasu) Musalia
Western accounted for 25 per cent of the indefinite closure of the institution. Edebe said the stand-off at the university
Dr Silas Masinde Simiyu, the managing director, Geothermal varsity’s management board and the re- The university says Rift Valley accounts had put the lecturers in danger.
Development Company. FILE
House calls fo≥

p≥obe into GDC’s
Sh1.7billion deal
SCAM Team says Geothermal Corp
inflated transport cost for equipment
BY EDWIN MUTAI over 62 trucks and earth mov-
ers alleged to move the heavy
Parliament has ordered the anti- geothermal exploration equip-
graft agency to investigate how ment. The trucks are said to be
the Geothermal Development unused at GDC’s Menengai site
Corporation (GDC) inflated the in Nakuru.
transportation of power plant The committee criticised
equipment in a deal worth to the anti-graft agency and the
Sh1.7 billion. Director of Public Prosecutions
The corporation offered for delays in investigating the
Bonfide Clearing whistleblower’s
and Forwarding complaint.
a contract in 2012 The MPs also
to move geother- The committee noted that the
mal rigs and other c≥iticised the anti- commission was
equipment in 40
lots with each cost-
g≥aft agency and yet to conclude its
investigations into
ing Sh42 million Di≥ecto≥ of Public matters relating to
within a distance of P≥osecutions the Anglo Leasing
11 kilometres, bring- scandal, botched
ing the worth of the
fo≥ delays in police recruitment,
entire deal to Sh1.7 investigations the National Social
billion. Security Fund and
The same firm is Kenya Pipeline
said to have charged KenGen Company.
Sh20 million last year for a simi- GDC managing director Si-
lar contract covering a longer las Simiyu has been questioned
distance of 15 kilometres. before by Parliament over the
The National Assembly’s agency’s multi-billion shilling
Justice and Legal Affairs Com- procurement deals.
mittee says the huge difference This followed a rocky rela-
in the two similar contracts calls tionship between Dr Simiyu
for investigations into the deal and GDC’s former chair, Si-
awarded by GDC. mon Gicharu who claimed
The committee has direct- that the corporation lacked
ed the Ethics and Anti-Corrup- transparency.
tion Commission to establish Dr Simiyu, however, de-
whether GDC conspired with nied the allegations insisting
contractors to inflate the value that GDC’s financial dealings
of contracts and hand over the and operations were “above
file to the Director of Public board”.
Prosecutions by March 30. MPs have in the past ques-
The committee received tioned the sinking of Sh51.8
copies of GDC and KenGen’s billion in the past five years
rig move contracts from a into GDC without much to
whistleblower. The committee show for it.
has also asked for investigations [email protected]
into claims that GDC acquired om
CORPORATE NEWS GLOBAL
Mother and
daughter shop YouTube to ≥elease
f≥ee child≥en app
at Nakumatt
Lifestyle
Supermarket
≥unning on tablets
in Nairobi last
December.
Retailers
have been left
vulnerable by the YouTube is releasing a new
recent exodus of app for children soon, called
manufacturers YouTube Kids, which will run
to Egypt due on smartphones and tablets
to high costs. and focus on kid-appropriate
ANTHONY OMUYA content.
The free app from Google
Inc’s online video service will
be available for download
from today and will feature
kid-friendly design, with big
icons and minimal scrolling,
Supe≥ma≥ket chains vie to

according to details seen by
Reuters.
The app, which will be Kid-friendly design
separate from the mainstream The free app from Google
unlock Kenya ≥etail ma≥ket

YouTube mobile app, will also Inc’s online video service will be
feature parental controls such available for download from today
as a timer that can be used to and will feature kid-friendly design
limit a child’s screen time.
The Wall Street Journal ear-
lier reported the launch, say- ning to roll out child-friendly
RIVALRY Global chains and private equity investors opened in Nairobi this year. Nakumatt is ing the company is planning to versions of its most popular
are coveting local stores’ strong growth prospects also looking to expand by selling a quar-
ter of its shares, though the process has
announce the new app today
at a children’s entertainment
products in a bid to be “fun
and safe for children.”
taken more than five years. Managing industry conference. Internet companies such
When Kaleli Muli needed to buy rings for malls has been tightened, though shoppers director Atul Shah said the company was A YouTube spokeswoman as Google and Facebook Inc
his wedding, he popped into his local su- are undeterred. New market entrants face in talks with an investor but declined to confirmed the information. do not offer their services to
perstore in a suburb of Kenya’s capital to numerous challenges in addition to local give details. In December, USA Today re- children under 13.
avoid the hassle of a trip downtown to find competition. New investors still have to deal with de- ported that Google was plan- -REUTERS
a jeweller. They must race to complete buildings on lays in the construction of shopping malls
He left 20 minutes later clutching a plas- time, overcome legal hurdles and establish in big cities and lack of retail space in up-
tic bag with two gold bands worth Sh45,000
shillings ($492), happy with his purchase
reliable supply chains.
Wal-Mart’s bid to enter Kenya through
country towns.
Paul Kavuma of Catalyst Principal Part-
Emi≥ates ≥ejects Delta
but also the time saved.
Before the advent of hypermarkets,
an acquisition flopped in 2013 due to a court
case involving the owners of local retailer
ners, a $125 million (Sh11.37 billion) private
equity fund invested in a local pharmacy re- apology ove≥ 9/11 claim
the rings might also have cost hours of Naivas, which it sought to acquire through tail chain, warned that failure of real estate
shopping. its South African business, Massmart. developers to keep pace with the growth in Emirates Airline rejected tis. But Delta said Anderson
“It is more convenient and there is a “The dominance of local chains in the retail could curb investments. an apology by Delta over re- “didn’t mean to suggest the
wider variety of products that I can choose modern retail segment makes it difficult “The real estate industry has to also be marks by the US carrier’s chief, Gulf carriers or their govern-
from,” said the agri-business for new entrants and resistance modernising and evolving, not just within in which it said he appeared ments are linked to the 9/11 ter-
consultant, who also does his to foreign takeovers complicates Nairobi but also upcountry into other com- to suggest a link between Gulf rorists. We apologise if anyone
weekly grocery shopping and The dominance mergers and acquisitions,” said mercial centres,” he said. carriers and the September 11 was offended.”
bought his flat screen TV at research firm Euromonitor In- attacks. He “was reacting to claims
Nakumatt, Kenya’s largest
of local chains in ternational. Problems stocking shelves “Emirates rejects the apol- the Gulf carriers have been
retail chain. the mode≥n ≥etail French retailer Carrefour Retailers can also face problems stocking ogy issued by Delta Air Lines making that US airlines re-
Nakumatt and other lo- segment makes it says it will inaugurate its first shelves, said Ayisi Makatiani, managing in response to comments made ceived subsidies in the form
cal retailers have long served Kenyan store this year through partner at Fanisi Capital, a $50 million by its CEO... which intimated a of payments from the US gov-
Kenya’s market but now in-
difficult fo≥ new its Dubai-based franchisee Majid (Sh4.5 billion) private equity fund. link between the Gulf carriers ernment after the 9/11 attacks
ternational store chains and ent≥ants al Futtaim. “It is one thing to build beautiful su- and the 9/11 attacks,” the Du- and the bankruptcy proceed-
private equity investors are By contrast, Nakumatt, which permarkets. The other thing is can you get bai-based carrier said. ings that resulted.”
also coveting the strong EUROMONITOR INTERNATIONAL has annual sales of $750 million good, constant supply of eggs? Can you get Delta chief Richard Ander- But the Emirates statement
growth prospects in east Af- RESEARCH FIRM (Sh68.2 billion), bought four good, constant supply of quality vegeta- son lashed out at Gulf carriers said “we believe that the state-
rica’s leading economy. stores in Tanzania from South Africa’s bles?” he said. — Emirates, Abu Dhabi’s Eti- ments made this week by Mr
Kenya, with a GDP of $53.4 billion (Sh4.8 Shoprite last year, taking its total in east Fanisi has invested in a food distribution had and Qatar Airways—when Anderson were deliberately
trillion) , is a gateway to regional trade, but Africa to 52, as it ramps up its presence in business and a meat processor in Kenya to asked about claims that bank- crafted and delivered for spe-
it holds other attractions for retail investors. underserved neighbours. fill that supply gap. ruptcy protection for US air- cific effect.
Analysts say the penetration of formal retail It has 38 outlets in Kenya, up from 11 a Uchumi Supermarkets, Kenya’s only lines should be seen as govern- “This brings into question
is 25 to 30 per cent, double that of Africa’s decade and a half ago, eight in Uganda and listed retailer, prefers local suppliers where ment assistance. his credibility as a CEO of a US
biggest economy Nigeria. two in Rwanda. possible, said chief executive Jonathan “It’s a great irony to have public listed company, as well
In addition, the average value of a shop- In Kenya, the Naivas ownership row has Ciano. Retailers have been left vulnerable the UAE from the Arabian Pe- as the integrity of the submis-
per’s basket has risen 67 per cent in five been resolved in court and the company by a recent exodus of manufacturers to ninsula talk about that, given sion which his airline has sub-
years to $20 (Sh1,820), making Kenya the says it is open to talks with potential suit- Egypt from Kenya due to high costs. the fact that our industry was mitted to the US authorities,”
continent’s fastest-growing retail market, ors, although not with Massmart. Cadbury and Kenya’s Eveready closed really shocked by the terrorism it said.
say industry executives. “We are open to talks with parties that their production plants in Kenya last year, of 9/11, which came from ter- The US big three carriers
Nairobi’s shopping malls hit the head- can actually help us improve the business,” opting to supply the market with choco- rorists from the Arabian Penin- —Delta, American and United
lines in September 2013 when Islamic said Willy Kimani, Naivas’ head of business late and dry batteries from their plants in sula,” Mr Anderson said. — are reportedly lobbying the
militants attacked the upmarket West- development. Egypt instead. Out of the 19 hijackers of US government to slow the ex-
gate shopping centre and killed at least Massmart said it still wants to expand “If you have challenges in Egypt, of the four planes used in the at- pansion of Gulf carriers into
67 people. into east Africa, where it will open its Game course they won’t deliver,” Mr Ciano said. tacks, 17 came from the Gulf the US market.
It remains closed and security at other brand store at a new shopping mall to be - REUTERS — 15 Saudis and two Emira- -AFP
COUNTY BUSINESS
NEWS | FEATURES | ANALYSIS
MPs want pa≥t of Sh1bn village polytechnics cash

BUDGET House team “We may have to go for the money Mr Musyimi said in 2010, the
allocated to governors and take some government through the Economic
says lawmakers might of it to construct these important in- Stimulus Programme developed Jua
stitutions through CDF framework,” Kali shades in a bid to spur growth in
take some of the funds said Mr Musyimi last week. rural economies.
“We gave them the money in the “The majority of these shades are
to build the institutions current financial year, but they have sitting idle yet they consumed massive
done nothing in polytechnics.” investments. We must revive and equip
BY EDWIN MUTAI He added: “Once we construct these them,” he said.
NAIROBI facilities and equip them, we will then He said several educational centres
hand them over to governors to run of excellence that were constructed
Members of Parliament are headed for them.” through the Sh30 million per con-
a clash with governors over control of The House committee has asked stituency have not been completed
about Sh1 billion for village polytech- Mr Rotich and his PS Kamau Thugge or equipped.
nics previously administered by the to look for additional money for com- “The centres of excellence are sit-
Education ministry. pletion of stalled projects under MP- ting as white elephants.
The Budget and Appropriation run Economic Stimulus Programme “The CDF allocation to constituen-
Committee has notified Treasury sec- (ESP) that was started in 2010. cies is not enough to make them viable.
retary Henry Rotich of their intention “You will have to look for about Sh15 These buildings must be completed,”
to take control of Sh935 million ear- billion extra in this budget. There are said Mr Musyimi.
marked for transfer to the counties in things we have to do through Constitu- He said targeted interventions Parliamentary Budget Committee chairman Mutava Musyimi (left) with Treasury
the next Budget. encies Development Fund (CDF). We were needed to lift more than 40 per secretary Henry Rotich at a function in September, 2013. SALATON NJAU
The polytechnics have been de- need extra support in three areas,” the cent of Kenyans living below the pov-
volved to county governments, but Mbeere South MP told the Treasury of- erty line. revenue that is available in the budget. while taking them through the Budget
committee chairman Mutava Musyi- ficials at County Hall in Nairobi during Dr Thugge, however, told MPs that “There is really no room for additional Policy Statement for 2015/16.
mi said MPs may take part of the cash a meeting on the Budget Policy State- the Treasury’s hands were tied with expenditure beyond what is provided in
to build the institutions. ment 2015/16 last week. regard to the amount of discretionary the fiscal framework,” he told the MPs [email protected]
Kilifi cites cont≥act b≥each in suspension of ≥evenue collecto≥

BY NEHEMIAH OKWEMBAH however, claimed he had not received and automated systems for cess collec- weighbridges at Jaribuni, Mavueni, Kwa
KILIFI such a letter and vowed to move to court tion as well setting up an automated sys- Ndomo and Kokotoni, which were near
to block termination of the company’s tem for packing fees collection. completion, as well as 44 cess stations.
The Kilifi County government has sus- contract. However, at company offices in Ma- A spot check at Kwa Ndomo weigh-
pended services of a revenue collection In the letter, the county has accused lindi, operations manager Raymond bridge in Malindi revealed use of the old
company for allegedly failing to comply Rain Drops of failing to achieve the tar- Tsuma displayed an automated rev- manual receipting system in cess collec-
with contractual obligation. gets it committed itself to meet by not enue collection system he claimed the tion instead of the automated gadgets,
In a letter signed by secretary and submitting a project schedule on time firm installed more than two months which apparently had been withdrawn.
head of public service Owen Baya, Rain in line with their deal. It also accuses the ago. He also displayed device allegedly Rain Drops beat 37 other firms to win
Drops Limited ceased to operate in the firm of failing to submit infrastructure handed to county revenue staff for use in the tender last year, but MCAs and a
county on February 17. Governor Amason Kingi (left) with county development plan on time and not meet- cess and parking fees collection. section of the Executive were opposed
Rain Drops director Shaib Nzioka, secretary Owen Baya. GEORGE KIKAMI ing the deadline to install weighbridges He said the firm had so far installed to the deal.
Nye≥i hay fi≥m posts Sh70m WHOLESALE RETAIL
loss as he≥de≥s invade fa≥ms

BY DANIEL OTIENO germ to feed their livestock due to a lack of
NYERI pasture. The prices of hay had increased to
Sh300 from Sh200 per bale during the pre-
A hay producer has recorded a Sh70 mil- vious rainy season.
lion loss due to invasion of its farms by Mr Mburu said the Sh500 fine imposed Hay and Forage manager Peter Mburu at the
herders. on herders for illegal grazing had failed to company’s farm in Laikipia last week. JOSEPH KANYI
Hay and Forage Company general man- deter pastoralists from trespassing into their
ager Peter Mburu said pastoralists from as land. “We feel helpless because the herders will get manure,” said the herder. ��
far as Laikipia were grazing livestock on are armed and sometimes invade the farms Violent clashes are experienced every
their farms on the outskirts of Nyeri due to at night,” he said. dry season when farmers attempt to chase
adverse weather. But Daniel Leparashao, one of the herd- away the herders from their land.
“We are at a loss because armed pastoral- ers, said their animals were starving and Laikipia county commissioner Wil-
ists have invaded our fields. We are no longer asked Nyeri and Nyandarua residents to son Wanyaga has called for the deploy-
able to supply hay to some of our clients who allow the pastoralists to graze livestock ment of General Service Unit officers to
had contracted us,” said Mr Mburu. on their farms. guard some of the affected farms.
The drought being experienced in Laikip- “Some (residents) have harvested crops “We are aware of the issues and already
ia had increased the cost of fodder. in their farms and should allow our animals we are investigating those said to be hold-
Most farmers now rely on hay and maize to feed on the maize stalks. In return , they ing the guns,” he said.
+254 789511888 or +254 789516888 Office: +254 020 2180 399/669
COUNTY BUSINESS
Counties to cont≥ol
EPZ company loses cou≥t fight cha≥coal indust≥y
with ≥egulato≥ ove≥ shutdown and manage fo≥ests
BY CHARLES WANYORO
CONFLICT Ricardo EPZ International was closed for failure to pay rent, licence fees NAIROBI
BY ALLAN ODHIAMBO County governments are set to

NAIROBI the authority was “dire and extremely ad- control the Sh30 billion charcoal
verse” considering the firm was just recov- industry and manage forests
Ricardo EPZ International has failed to ering after one year receivership under that were previously run by the
reverse a decision by the Export Process- Trans National Bank of Kenya which ap- local authorities after the Kenya
ing Zone Authority (EPZA) to shut down pointed Messrs Farid Sheikh and Denis Forest Service (KFS) devolved
its premises over rent arrears and unpaid Musyoka as receivers. nine of its functions.
licence fees. The authority said that the applicant’s The agency’s acting director
The company had moved to court to continued occupancy of the premises with- Emilio Mugo said counties will
compel EPZA to reopen its premises it shut out payment and without a valid trading take up the role of controlling
last year, leaving 650 employees jobless. license was depriving other Kenyans an charcoal burning, its taxation
It said the authority acted unfairly by opportunity to earn a living by making use and movement to markets.
shutting its operations over Sh20 million of the premises and that due to the huge The county governments
arrears, after talks to stagger the payments outstanding amount, it had been forced to will also oversee the use of
collapsed. The company, in its court ap- seek and pay for the services of auctioneers private forests and farmlands
plication argued the arrears accumulated which had so far not borne fruit. and will have the authority to
when it was placed under receivership by license residents to cultivate in Emilio Mugo, Kenya Forest Serv-
Trans National Bank. Valid licence un-gazetted lands. ice acting director. FILE
EPZA, through a letter dated April 10, 2014 He said the forest depart-
Shutting down and addressed to Mr Ndubai, suspended ment had already completed estry extension services, forests
High Court Judge George Odunga, how- the firm’s operations from April 11. sensitisation programmes to and game reserves that were for-
ever, said the company’s application failed In the letter, the company is accused of empower county governments merly managed by local authori-
to prove that EPZA acted unfairly in shut- violating the EPZ Act, which provides for and strengthen their capacity in ties were identified as being the
ting down its premises. valid licence for all companies in the EPZ, management of forests. ones to be devolved.
“In this case there is no contention that Employment Act that provides for when Speaking last week in Nai- “However, gazetted forests
the respondent (EPZA) made any prom- wage should be paid and Environmental robi, Mr Mugo stressed that and National Water Towers
ises or conducted itself in a manner which Textile workers at Ricardo EPZ in Athi River. Management and Coordination Act that partnership between KFS and Agency will remain under the
gave rise to legitimate expectation that The company was closed over rent arrears. governs disposal of waste. the county governments in the national government,” he said.
the applicant would retain possession of FILE “By copy of this letter, the Commis- implementation of policy on He said counties will be ex-
the suit premises,” he said in a judgment sioner of Customs Services Department national forests, legislation pected to set up measures for
delivered Tuesday. had reached with auctioneers appointed Kenya Revenue Authority and her officers and the rules and regulations increasing forest cover by ensur-
“Accordingly I decline to grant the or- to collect the debt. at the Athi River EPZ are hereby notified developed under the Forest Act, ing there are enough extension
ders sought herein. In the result the notice Mr Ndubai, in his application said a that Ricardo EPZ ceases to immediately 2005 would have to be strictly services.
of motion dated April, 30 2014 fails and is Sh3 million cheque issued to EPZA was enjoy any and all benefits/incentives of- adhered to. The official, asked County As-
dismissed with costs,” he further said. rejected and instead Ricardo EPZ was di- fered under the EPZ programme,” read According to the Kenya semblies to enact relevant legis-
Ricardo EPZ International chief execu- rected to clear the entire amount or stop the letter. Gazette Supplement No 116 of lation in conformity with their
tive, Richard Ndubai told the court that operations. August 9, 2013, specific forestry local needs and aspirations.
EPZA officials rejected an agreement they The company said the stand taken by [email protected] functions, among them farm for-
Investo≥s th≥eaten to ≥elocate ove≥ ≥ising insecu≥ity

reported in Kisumu in what is believed business organisations. Factory thefts
BY ANGELA OKETCH to be the work of a gang targeting busi- should be treated as isolated cases,”
KISUMU ness people. he said.
“This is the third time I am being But the rising insecurity has
Kisumu investors are threatening to robbed in the same fashion. Three peo- not spared residential homes. Last
relocate over rising insecurity. ple on a motorbike stopped me and month, Ahero ward representative
A fish processing company, J Fish stole Sh547,000 just after I closed my Maurice Aloo was shot and injured at
Kenya, that exports its produce to Asia business for the day,” said James Owino, his Bola home.
said escalating insecurity has made it a butchery owner in Kondele estate The attack came a week after the
difficult to post profit after having who was attacked two weeks ago. Kisumu deputy majority leader John
lost at least Sh20 million in recent “Something needs to be done. I can- Olum lost valuables estimated at
incidents. not keep on sweating for people and A trader arranges fresh tilapia for sale. A fish processing plant in Kisumu is threat- Sh250,000 in a robbery at his home.
“The first time our truck was car- they take as if they own it.” ening to close business over rising insecurity. FILE Late December, Eric Onunga the
jacked. In the second and the recent J Fish management wrote a protest director of Ounga commercial agen-
one, two tonnes of fish fodder worth letter to the county commissioner of gadgets that include light control pan- that will suffer,” he said. cies that deals with real estates and
Sh20 million was stolen. Who can ac- police expressing its disappointment els, magnetic doors and panic alarm The chairman of Kisumu chapter property management was accosted
cept such a loss?,” said the factory’s over insecurity in the town following switches. of chamber of commerce Israel Agina, by thugs at his home in Riat.
manager Raval Ravindra. the repeated attacks and no action be- Benson Onyango, the chairman however, maintains that the county is Kisumu city residents through
J Fish, which was established in ing taken despite several complaints Nile perch traders said the attacks at safe for business. chairman, Audi Ogada have protest-
1980, exports about 1.5 tonnes of fish filed with authorities. the factory will render them jobless if “Despite several cases of robberies, ed laxity by the security organs. “The
fodder to China and Japan weekly. It As a temporary measure, the com- the factory relocates. Kisumu is a county that thrives so well county government should bring to-
has employed over 250 workers and pany has been forced to incur extra “If the director decides to move in business. We have a good working gether the various stakeholders in a
over 1,000 fish traders. costs of hiring more night guards, two the factory to other towns or move to relationship with the police, we meet security conference to deliberate on the
A number of robberies have been police officers and installing security Uganda and Arusha, it is us the traders regularly with the stakeholders and issues ailing the county,” he said.
IDEAS & DEBATE

OPINIONS I REVIEWS I ANALYSIS
Like Schiphol Ai≥po≥t, JKIA too can

Other Voices
Jeb Bush
Presidential aspirant
be key d≥ive≥ of ou≥ economic g≥owth test to the fact that it is the gateway to
Dutch culture and plays an extremely
NUMBERS Dutch prominent role in promoting the coun-
try as a tourist destination. Apart from
airport generated the fact that the shops, restaurants,
Eugene Robinson (Washington Post)
lounges and rest areas are of the high-
Sh2.7trn, almost est quality with very friendly and pro- If I were a fiscal conservative, I’d begin
to suspect that Jeb Bush is as much of
fessional staff, the visual layout of the
twice Kenya’s current airport is a constant reminder that
a big-government Republican as his
big brother. He wants to spend more on
there is more that lies to the country
annual budget outside the confines of the terminal
the Pentagon, invest in infrastructure
and education, spur the economy
buildings. The success of the custom-
to four per cent annual growth - if I
er experience at Schiphol means that
didn’t know better, I’d say it all sounds
there are several repeat customers.
almost Keynesian. Oh yes, he says
THE NIT PICKER Sixty seven per cent of the total pas- he also wants to reform entitlement
sengers throughput in Schiphol are programmes and balance the budget.
BY CAROL MUSYOKA from outside the Netherlands. Please tell me how all of this adds up.
What does this all mean? Airports I got a feeling that he doesn’t have a
can be big business. distinctive foreign policy vision.
L
ast week a work trip led me to Kenya’s geographical location right
pass through my favourite air- in the middle of the continent contin- Benjamin Netanyahu
port Schiphol in the Nether- ues to undoubtedly place us, and Kenya Israel Prime Minister
lands. Coming in on the final descent Airways in particular, as the principal
into Amsterdam, I noted there were at hub for intra Africa travel. Which is
least four other flights in the sky above why the success of our national airline
us, leaving a tell tale trail of white jet is symbiotically related to the success
stream in their wake and I marvelled An aircraft at an airport. With the right business strategy and management, Kenya of Jomo Kenyatta International Air-
at the remarkable skills of the Dutch air can use the Jomo Kenyatta International Airport for greater economic growth . FILE port (JKIA). However, our airport lets
traffic controllers in keeping all these us down. But then again, it’s not like
planes safely in their own paths. About we have jaw dropping or awe inspir-
five kilometres to the west of our de- financial success as Schiphol’s aviation The Consumer Products and Serv- ing stories from the other competing
scending plane was another that was operations contribute Sh2.7 trillion) to ices business area develops and man- airports such as Ethiopia’s Bole and David Ignatius (Opinion)
moving at the same speed and altitude the Dutch GDP, with 500 companies ages the range of products and serv- Johannesburg’s Oliver Tambo. The two The rift between President Obama
as we were. located at the airport employing 65,000 ices available at Amsterdam Airport have relatively newer facilities, but the and Israeli Prime Minister Benjamin
Netanyahu over the Iranian nuclear
The similarity of movement was people. The airport is connected to Schiphol, the key objective of which (sad, bad and sometimes mad) attitude
issue is often described as a personality
certified when the landing gear for 323 direct destinations, resulting in is to ensure that passengers enjoy a of their employees and the general per-
dispute. But an Israeli official argued
our plane was released in perfect 52.6 million passengers and 1.5 million carefree and comfortable journey. The ception of being a weary traveller’s pit
this week that the break has been
synchronicity with the neighbouring tonnes of cargo annually. business area grants concessions for stop is completely lacking.
building for more than two years and
plane. That’s when I realised that both There are 425,565 take-offs and retail and catering outlets, services
reflects a deep disagreement about
planes would be landing at exactly the landings – collectively called air move- and entertainment facilities, and op- Successful airport how best to limit the threat of a rising
same time albeit on different runways. ments annually. This translates to 1,166 erates retail outlets and car parks. It It is also noteworthy that not a single Iran. It goes back to 2012, when the
I didn’t see the plane again as we de- daily air movements. Total real estate also creates advertising possibilities African airport appears in the top 50 Obama administration began secret
scended into heavy fog that clung to on the terminal side is 650,000 m2 with at Amsterdam list of busiest airports in the world. Yet, contacts with Iran through Oman.
the ground rendering visibility next five runways all of which Airport Schiphol. if you look at any global map, Africa sits
to zero and I assumed that the plane are on 6,886 acres. On the This generates 25 per plum in the centre and should natural- HSBC offices
landed without incident. revenue side, the airport cent of total revenues. ly be the centre of global aviation paths.
I became very curious about the generated Sh145 billion This goal has been Real Estate develops, But then pigs would fly and other su-
Bank implicated in tax evasion
size of Schiphol airport thereafter if in 2013 with a net profit manages, operates and pernatural stories. It also bears not-
two planes could land simultaneously of Sh23.6 billion. a financial success invests in property at ing that Schiphol Group’s sharehold-
and never meet again. It took at least
10 minutes for the plane to trundle
It’s not difficult to see
how the operating com-
as Schiphol’s and around Schiphol
and other airports
ers are: State of the Netherlands 69.8
per cent, Municipality of Amsterdam
along the interconnected network of
taxiways to the terminal. Often, the
pany - Schiphol Group
- manages to generate
aviation ope≥ation and generates 10 per
cent of total revenues.
20.0 per cent, Aérports de Paris eight
per cent and the Municipality of Rot-
vehicular traffic on the Amsterdam good revenues through cont≥ibute Sh2.7 From the property terdam 2.2 per cent. A Central and two
highways ran under the taxiways, the execution of their under management, municipal governments own one of the
confirming the fact that the airport business strategy. The t≥illion to GDP 33 per cent are used most successful airport businesses in Editorial (Telegraph)
expansion was a continuous evolu- business is run as a com- as offices while 44 per the world. We will take no lectures about
tion in a neighbourhood where land bination of four main op- cent are used as indus- Politics can be set aside to provide journalism from the likes of the BBC,
was a scarce resource. It bears noting erations: Aviation, Con- trial units. a world class institution, run on world the Guardian or the Times. Those media
that Amsterdam’s Schiphol is the 14th sumer Products and Alliances and Par- class business principles and delivering outlets that are this week sniping about
busiest airport in the world and the 4th Services, Real Estate and Alliances and ticipations, which generates eight a world class experience. With the right our coverage of HSBC were similarly
busiest in Europe. Participations. The Aviation business per cent of total revenues, consists of management and incentives, JKIA can dismissive in 2009 when we began to
But the airport is specifically and area operates at Amsterdam Airport Schiphol Group’s interests in the re- and should be a key driver of our eco- reveal details of MPs’ expenses claims,
strategically operated to connect Schiphol and provides services and fa- gional airports in the Netherlands and nomic growth engine. a fact that speaks volumes about their
Netherlands with all the important cilities to airlines, passengers and han- its interests in airports abroad. judgment and partiality. Unlike the
economic, political and cultural cit- dling agents. It generates 57 per cent of If you ever have the pleasure of fly- [email protected] Guardian, we are not cushioned from
ies in the world. This goal has been a the total revenue for the group. ing into Schiphol airport, you will at- Twitter: @carolmusyoka commercial reality by a generously-
endowed charitable trust.
EDITORIAL & OPINION
Published by the Nation Media Group, Kimathi Street, Nairobi

Linus Gitahi: Chief Executive Officer | Tom Mshindi: Acting Editorial Director
Ochieng’ Rapuro: Managing Editor
P.O.Box 49010 GPO Nairobi Telephone: 254 20 328 8104 Fax: 254 20 214849
Email : [email protected] www.bdafrica.com
Flawed CCTV su≥veillance

system se≥ves no pu≥pose
A
fter a tragedy, it is common government officials touted their
for investigations and intro- security function, going as far as
spection to follow. And be- promising that the cameras would “Yes, I did say that my door is always open... But my mind
yond the main investigation, other be equipped with face recognition remains closed...”
secondary inquiries often unearth software that would communicate
shocking details that would have presumably with gadgets carried
taken longer to come to light. by police on patrol, enabling them
In the early morning of February
7, Kabete MP George Muchai, his
two bodyguards and driver where
to arrest offenders.
But the county assembly re-
port describes the quality of the
EAC integ≥ation effo≥t still needs wo≥k
shot and killed near the Kenyatta images captured by the cameras past several days travelling across all start of this article. The EAC treaty ob-
Avenue-Uhuru Highway rounda- as being low and unreliable and the capitals of the five partner states ligates the five countries of Burundi,
bout. Several suspects have since recommends that they should be of the EAC. During my visits, I was in- Kenya, Rwanda, Tanzania and Uganda
been arrested and are assisting the upgraded. It also details how out of terested in the levels of engagements to cooperate in the field of energy. To-
police with investigations. 51 cameras commissioned, only 40 of key stakeholders with the EAC in- wards this end, the treaty envisages
But following the murders, were installed and out of these only tegration process. the adoption of policies and mecha-
focus shifted to the closed circuit 33 are still working. And to make COLLINS ODOTE During that same period, there nisms to promote the efficient exploi-
television cameras that dot vari- matters worse, traffic police do not DEVOLUTION were reports in the Kenyan media of a tation, development, joint research
ous city streets in the hopes that coordinate with the personnel in standoff between Tanzania and Kenya and utilisation of various energy re-
O
they would provide the police with the CCTV control room whose only n February 19, President regarding tour van operators and the sources available within the region. It
much-needed clues to murderers’ work is to stare at tiny screens the Uhuru Kenyatta jointly with decision by Kenya to ban Tanzanian is in pursuance of this treaty provision
identities and their get-away ve- whole day. In other words, taxpay- the President of Rwanda tour vehicles from picking and drop- that the region has developed an East
hicle. And while it appears a few ers are paying individuals to twid- commissioned the Kenya Electricity ping passengers at the Jomo Kenyatta African power master plan, an East
clues may have been gleaned from dle their thumbs. Generating Company’s (KenGen) 140 International Airport. African strategy on scaling up access
the system, this was not enough The absurdity of this sordid af- megawatts Olkaria I unit 4 and 5 geo- This was in retaliation to Tanza- to modern energy services.
to dispel nagging doubts that the fair is mind-boggling. Barely two thermal power plant in Naivasha. nia’s restrictions of the operations of In addition, East Africa has
CCTVs had performed way below years and half a billion shillings lat- The project is set to inject an ad- Kenyan tour operators in the country. emerged as one of the leading sourc-
expectation. er, technology that was expected ditional 140MW of electricity to the However, the debate about this was es of new discoveries of oil and gas in
Cue a damning report prepared to make police work easier in the national grid. I am not sure how many restricted to the bilateral agreements the world.
by the Nairobi County Assembly’s fight against crime is declared in- Kenyans asked themselves why it was between Kenya and Tanzania in the These developments point to the
Transport Committee on the se- adequate and proposals for a fresh significant for the president of Rwan- 1980s. There was very little reference importance of the regional bloc pursu-
curity system’s shortcomings and tender floated. da to be present during the launch to the East African Community, the ing its energy strategies collectively.
it appears another fresh can of The intentions of the surveil- that essentially looked like a Kenya provisions of the Common Market The events like the one last week in-
worms has just been prised open. lance project were noble but its project. and its relationship with the dispute volving both President Kenyatta and
According to the report, the CCTV execution has been nothing short During the same week, I saw in between the two countries. President Paul Kagame should not
cameras cannot capture reliable of scandalous. If Ms Nanjing Les the Rwandan media reports of the The treaty establishing the EAC just be good photo opportunities but
images to identify criminals and Information Technologies met launch of an 8.5 megawatt solar en- envisages deepened and widened co- must be evidence of clear cooperation
traffic offenders. all tender specifications, which ergy project in the country under operation among the partner states in among the EAC partners in driving the
Now these were definitely not individuals were responsible for the US-Africa Clean Energy Finance several fields ranging from tourism to integration agenda and solving the
intended to be your run-of-the-mill coming up with such appallingly Programme. The project is expected the environment, economic to social many challenges facing the region,
CCTVs that are often installed for low standards for the surveillance to expand electricity generation in and judicial to political. It envisaged including energy.
their cosmetic value. Instead, they equipment? The entire affair reeks Rwanda by six per cent. a gradual build up in the integration Traversing East Africa this past
were supposed to be the all-seeing of carefully orchestrated obsoles- These two seemingly unrelated stages. The first stage was agreement week, one gets the impression that
eyes that missed nothing in the In- cence intended to create another events made me think about the East and launch of a Customs union, fol- the levels of awareness by ordinary
tegrated Urban Surveillance Sys- opportunity for tenderpreneurs African Community integration proc- lowed by a common market. Currently, East Africans and their engagement
tem project mooted in early 2012 waiting in the wings for their turn ess, its status and the extent to which negotiations for a monetary union are in the integration project requires
following a series of deadly terror to eat. East Africans are aware of what is go- almost complete; they are just waiting much work to be done.
attacks in the central business We must be careful not to pump ing on within the community. for signing and possible launch. The writer is a senior lecturer, Uni-
district. any more money into this project I raise this because I have spent the Back to the energy example at the versity of Nairobi
This after the surveillance before a thorough audit of the
project had received a Sh8.5 bil- current surveillance system has
lion grant from the Chinese gov-
ernment and a Chinese firm – Ms
been carried out and the identi-
ties of those behind this farce VIEWS FROM ABROAD Opinions f≥om a≥ound the wo≥ld
Nanjing Les Information Technolo- made public. Why Americans lynched Mexicans Retire Mugabe, it’s good for you Time to change bad governance
gies – would later be awarded the Most countries in the West, Few groups have suffered more systematic After President Robert Mugabe fell at the For years, we have debated whether or not
tender to install the CCTV cameras which are not beset by the levels of mistreatment, abuse and murder than African- airport, I got a sense that Zimbabwe has its fair our institutions are capable of delivery and
for Sh430 million. insecurity witnessed here, are able Americans. share of “Comical alis”, hell bent on spreading how our civil service suffers from capacity
Although much public focus to monitor their urban areas with But, the story of mob violence against lies about Mugabe’s state of health. These constraints to cope with the multiple crises of
tended towards how the cameras unparalleled ease. We can achieve NEW YORK TIMES Mexicans in the THE STANDARD propagandists want THE DAWN governance that beset
would help in traffic flow man- the same but only if the firms and NEW YORK Southwest compels HARARE Zimbabweans to ISLAMABAD it. It would appear that
agement and the anticipated ar- individuals involved don’t set out us to rethink the history of lynching. Southern believe that at 91, Mugabe is still that sprightly with the present state of human resource
rest and prosecution of offenders, to short-change Kenyans. blacks were the group most often targeted, and much adored man he was in 1980, still capacity and weakened state institutions;
but comparing the histories of the South and possessing abundant energy needed for one improvement in governance is something that
the West strengthens our understanding to lead. Sadly for these officials who want the remains a distant dream. Further delaying
of mob violence in both. In today’s charged President to remain in power, giving them long-awaited decisions related to civil service
To comment... debate over immigration policy and the growth enough time to feather their nests, Mugabe reforms will only prolong the misery that the
The editor invites comments on our content and topical issues. Please of the Latino population, the history of anti- is human and is quite old by any standard — average Pakistani faces on a regular basis.
include your full names, telephone number and address in your letter. Mexican violence reminds us of the costs and whether African or European, and it’s inevitable So what are we to make of this never-
Email: [email protected] consequences of hate. that his health is now failing. ending cycle of neglect and incompetence?
EDITORIAL & OPINION
Putin’s agg≥ession must be met with bold leade≥ship Tax compliance,

YURIY GORODNICHENKO
DEMOCRACY
Because the existence of a Euro-
pean model continues to guide and
encourage those pursuing transpar-
pressure and the temptations of Rus-
sian patronage.
Putin knows this, which is why
promote austerity in the eurozone in
the face of anemic economic growth
and widespread unemployment.
p≥udence can
help manage
I
f the world should have ent, democratic governance in many the Kremlin has been reaching out If Putin has indeed set out to
learned one thing from the post-communist countries, there is to Euroskeptic parties and groups destroy the EU, such an approach
the ≥ising debt

recent months of tensions no question that Putin would benefit from both extremes of the political is the best way to help him. Europe
between Russia and the West, it is from the EU’s demise. spectrum. Putin’s narrative may be is in desperate need of growth, and
that Russian President Vladimir Europe’s attractiveness as a reminiscent of Soviet propaganda. achieving it will require bold leader-
Putin’s strategic ambition and skill model of democratic governance But that has not prevented it from ship from the EU’s most important RENALDO D’SOUZA
should never be underestimated. It would be greatly weakened. Aspir- being embraced by many at a time member state, Germany, and its most EXPENDITURE
is in this light that the West should ing EU member states would turn when the European project is already important leader, Chancellor Angela
view Putin’s recent overtures to elsewhere. Indeed, some current under great stress from the conti- Merkel. The German public must be Kenya’s debt situation like many developing
some within the EU. EU members, such as Hungary, nent’s economic crisis. made to understand what is at stake countries is one caused by a mismatch in gov-
There can be no doubting Putin’s where Euroskepticism and illiberal Unfortunately, the European es- – and why continuing on the current ernment income and expenditure. This mis-
awareness of the role that Europe- sentiment are already widespread, tablishment is not doing enough to path could end up delivering the EU match results in a deficit which necessitates
an ideals – and the possibility of EU might be tempted to follow Putin counter Moscow’s anti-European, di- into Putin’s hands. borrowing. Its debt-to-GDP ratio stands at 52
membership – has played in moti- down the path toward authoritar- vide-and-rule offensive. That is par- Yuriy is professor of econom- per cent, which is sustainable.
vating the struggle in Ukraine and ian rule. And countries in the region ticularly true in Berlin, where the ics at the University of California, In the past, external debt comprised a
constraining his actions. would be more exposed to Russian German government continues to Berkeley bigger proportion of total public debt but the
situation has since changed in favour of do-
mestic debt which stood at 53 per cent of total
public debt in December last year. But how to
The editor welcomes brief letters on topical issues. Opinions expressed here are not necessarily those of reduce the rising deficit? The answer is either
Letters the editor or publisher. They may be edited for clarity, space or legal considerations.
Send via e-mail to [email protected]
increasing government income or reducing
or managing its expenses. However, we are
in a situation where expenditure continues
to increase (particularly as a result of heavy
Utalii deserves more funding from government

investment in infrastructure and implement-
ing devolution).
How can the government increase its in-
come? I will attempt to answer this by analys-
T
he Utalii College is one of ing the components of income: tax revenue
Africa’s leading institutions and non-tax revenue. Income generated from
and is highly regarded for taxation accounted for 91.4pc (average during
training quality manpower for the 2013/2014 fiscal year) of total revenue. The
the hospitality and tourism in- ability of the government to increase revenue
dustry. largely depends on its ability to either increase
The institution’s curriculum, taxes or increase the level of tax compliance.
which is modelled along the best The former option would be received with
Swiss training, has proved rel-
much displeasure since most Kenyans feel
evant for decades.
overburdened by the existing tax structures,
Since its inception, the college
while attempts by the taxman to increase com-
has continued to be the market
pliance have been relatively ineffective.
leader in hospitality and tourism
studies. For this reason, the insti- With regards to the government’s ability to
tution is always considered as a reduce or manage its expenses, there exists a
model for those colleges interested fundamental problem. This is the composition
in offering similar training. of government expenditure. The 2013/2014
As the country embarks on fiscal year saw recurrent expenditure account
meeting its Vision 2030 pro- for 80.6pc of total expenditure with the rest as
gramme targets, Utalii will re- development expenditure. This is a worrying
main core to these grand economic scenario as much as consumption and govern-
plans. The human resource comment expenditure are critical components of
ponent in the delivery of quality the GDP equation. Wages and salaries account-
hospitality experience makes the ed for 38.3pc of total recurrent expenditure
hotel school a worthy partner in while other recurrent expenditure accounted
realisation of the country’s eco- for 42.9pc. Of the total recurrent expenditure
nomic dreams.
in the last fiscal year, domestic and foreign in-
To ensure the college produc- Tourism stakeholders at the Coast last year. Most hotels in the region draw their staff from the Utalii College. FILE
terest accounted for 13.9pc and 15.8pc of total
es the requisite personnel, it will
recurrent expenditure respectively. So what
require more resources from the ing matters. ternational Young Chef Olympiad puts the school in a class of few
needs to be done to limit our slide into further
State. Hospitality training is an In the same way the National held in India last month where elite institutions in the world.
expensive undertaking and allo- Youth Service is getting a lot of one Utalii student emerged top It is against this background debt? Increase tax compliance and ensure ef-
cating a lean budget to the school attention from the government, in his category. that the State owes the college ad- fective management of resources. Government
does it a great disservice. Utalii College also needs adequate The track record of Utalii in equate funding to enable it main- expenditure on development projects needs
Some analysts compare the funding for its graduates to com- tourism education speaks vol- tain the high standards of training. to increase for sustainability of income gen-
training of a quality hospitality pete favourably with global elite umes. The United Nations World Reduced funding will compromise eration. In addition, public resources need to
professional to that of a medic. schools such as Cornell in the US, Tourism Organisation (UNWTO) the unrivalled quality of education be managed better.
Utalii used to compete on equal Manchester Metropolitan Uni- Themes Foundation, which regu- the institution is known for. And although the CBK has done well to
footing when the college was get- versity in the UK, Strathclyte in lates quality of tourism and trav- Skilled human resource is the manage its debt, we need to avoid a situation
ting Swiss government funding. Scotland and Surrey University, el programmes, recognises Utalii backbone of quality service deliv- where government rather than households
Now the school is struggling to just to mention but a few. as the institution that meets their ery in the tourism industry. Kudos or investors would be the preferred target for
meet its financial obligations. So far, the college has proven standards. to Utalii for putting Kenya on the banks in terms of credit provision.
Where is government aid? The it is still a giant in this part of the In addition, the hotel school is world map in tourism studies. D’Souza is assistant manager, Group
lean budgetary allocations given world going by the exemplary also listed as a center of excellence BENARD AMAYA Strategy, at Chase Bank
to the institutions are not help- performance at the first ever In- by the UNWTO. This recognition Via email
16 BUSINESS DAILY | Monday February 23, 2015 Monday February 23, 2015 | BUSINESS DAILY 17
NEWS INDEPTH NEWS INDEPTH
too. But since her first case in 2011, no one has come The recent surge of state court class actions ing and that she was a valid investor advocating Timothy Coyne, a former New York City police
close to the volume filed by Kramer. She is always has so far drawn little scrutiny from lawmakers. on behalf of other Transatlantic shareholders. lieutenant, filed his first of four cases. Kramer’s
According to Cornerstone Research, a consult- represented by Gardy & Notis, a six-attorney con- The suits haven’t gone unnoticed, to be sure: The Kramer, who is 50 according to public records, hedge fund, Greentech Research, brought at least
ing firm, 94 per cent of all merger and acquisition tingency-fee firm with offices in Englewood Cliffs, settlements and the attorney fees, including those grew up in New Jersey, the daughter of an ac- two cases.
deals worth at least $100 million (Sh9.1 billion) N.J., and New York City. in Kramer’s cases, are reviewed for fairness and countant. A longtime friend of Kramer’s, former Kramer said she used her married name when
were challenged by a class action in 2013. In 2007 In addition to the 40 cases Reuters identified approved by judges. U-2 spy plane pilot Cholene Espinoza, described she held shares in a joint account with her hus-
the number was just 44 per cent. that were filed by Kramer, at least six more were But in Delaware, where most publicly traded the family as frugal. “They recycled their Ziploc band. Coyne could not be reached for comment.
The lawsuits are often nearly identical. They filed by either her husband or her hedge fund, US companies are incorporated and most of these bags,” she said. By the end of August 2014, Kramer, her hus-
parrot recent earnings statements or analyst re- Greentech Research LLC. Their total of 46 suits cases are filed, some judges have started to exam- In her 2011 book, The Little Book of Big Profits band and her hedge fund had filed class actions
ports as purported evidence that the price of a is at least 50 per cent greater than that of the in- ine the settlements more carefully. from Small Stocks, Kramer wrote that she scored in 17 states, according to court records and data
buyout is too low. They are filed within days of a dividual who appeared second-most frequently Among them is Travis Laster, a judge on Dela- her first big investing success in 1987, when she supplied by Cornerstone Research. She and her
deal announcement, as the challengers race to in the analysis. ware’s Court of Chancery, one of the most com- bought shares on the cheap after “Black Monday.” husband were appointed lead plaintiff or co-lead
be named “lead plaintiff,” entitling them to agree Mark Gardy of Gardy & Notis said in an email monly used forums for corporate disputes. He By the time she was 30, she has said, she was a mil- plaintiff at least 19 times.
to a settlement on behalf of the class. The role that “Kramer is a sophisticated investor who has has said that real corporate wrongdoing may go lionaire. She worked as an analyst and investment Most of their cases were brought within six
often allows their lawyers to collect the largest pursued shareholder advocacy through litigation.” undetected: Plaintiffs’ lawyers rush to file rather banker at Morgan Stanley and Lehman Broth- days of a deal announcement and settled within
share of the fees. Sometimes the lead plaintiff He added: “A lot of well-known activists employ than investigate potential problems, and defence ers, and managed a multibillion-dollar portfolio two months of being filed. In all cases, they were
holds only a tiny handful of shares in the de- the same law firms to file lawsuits against multi- lawyers would rather pay to settle even a meritless at the Cisneros Group of Companies, according represented by Gardy & Notis.
fendant company, meaning they have virtually ple companies.” case than delay the closing of a deal. to resumes she has posted online. She owns two It is unclear exactly what Kramer gained from
no money at stake. The new M&A class action litigation is remi- “The plaintiffs’ law firm gets what it wants: a Manhattan condos and co-owns a third. all this. Fifteen of the 19 cases in which she was ap-
niscent of the boom in shareholder class actions of fee. The defendants get what they want: a release By 2011, Kramer was the editor of her stock- pointed lead or co-lead plaintiff settled for more
Buyout cases the 1990s. Those lawsuits, too, were often brought of all claims against them. The defence lawyers picking newsletters. She was also affiliated with details about the deal negotiations, with no money
Kramer, for example, sued to stop the $3.2 billion by investors with tiny holdings, working with a get paid, usually by insurers,” Laster said in an two New York companies, Finance Scholars Group going to shareholders. The others were dismissed
(Sh292.5 billion) sale of Transatlantic Holdings handful of law firms. The lawyers hit companies email to Reuters. In a 2010 opinion involving and VJL Consulting, that provide services such at the plaintiffs’ request.
when she held only two shares of the reinsurance with cookie-cutter suits and secured settlements the proposed sale of Revlon Inc, Laster derided as expert witnesses to law firms, according to her “I feel bad,” Kramer said. “I really did want try to
Top TV stock-picke≥ leads

company’s stock, according to court records. that resulted in massive attorneys’ fees. some plaintiffs’ firms as “Pilgrims,” because, he LinkedIn profile and an online resume. She was see a valuation paid that is fair to shareholders.”
A trader works on In most buyout lawsuits, the settlements, too, Back then, the trigger was a drop in a compa- quipped: “Firms who are early filers are frequently a contributor for Forbes.com and an occasional What is certain is that defendants paid at least
the floor of the are almost identical: The defendants agree to ny’s stock price, and the boilerplate allegation was early settlers.” TV commentator, as well. $14 million (Sh1.3 billion) in fees to shareholder
New York Stock disclose a bit more information about the deal violations of federal securities laws. Corporations Another Delaware judge, Leo Strine, learned That February, she went on the PBS “Nightly attorneys to settle the cases in which Kramer had
Exchange. Buyout negotiations in return for a release from liabil- suspected that law firms were choosing plaintiffs while presiding over Kramer’s case challenging Business Report” with a stock tip: She told view- a lead role. Gardy & Notis stood to collect about
onslaught of class action

lawsuits have ity. They also agree to pay the plaintiffs’ lawyers who were little more than figureheads. the sale of Transatlantic Holdings that she held ers that the share price of Animal Health Interna- $1.5 million (Sh137 million) of that, based on the
been flooding a mid-six-figure fee for what is typically just a In 2006, a leading class action firm then known only two shares of the company. In a rare move, tional, a maker of livestock medicine, “could really share of the billable hours the firm claimed in the
into state courts couple of months’ work. as Milberg Weiss Bershad & Schulman was in- Strine rejected the settlement. double” as a result of a commodities boom. cases. The rest of the money went to firms rep-
in recent years, Shareholders, and the plaintiffs who file a case, dicted for paying kickbacks to plaintiffs to file “I think that makes plaintiff Kramer not at all A few weeks later, a rival unexpectedly swooped resenting other plaintiffs who filed class actions
suits against acquisitions

since Congress almost never get a thing. Of the 77 settlements cases. Four partners were sentenced to prison, typical of any kind of rational investor in a com- in to buy the company, but the price rose only over the same deals.
and judges made reached in 2014, only five produced more than and the firm paid $75 million (Sh6.9 billion) to pany,” said Strine, then the head of the Court of about 10 per cent. Kramer filed a lawsuit against
it harder for $5 million (Sh457 million) for shareholders, ac- end the case. Chancery, according to a transcript of the 2013 Animal Health’s board in Delaware state court, Immaterial and unnecessary
shareholders cording to Cornerstone Research. Congress in 1995 passed a law that sought to hearing. “I don’t have any confidence, unfortu- claiming the buyout price was too low and seeking In her June interview with Reuters, Kramer said
to sue in federal A dozen or so plaintiffs’ law firms file the bulk curtail such abuses. Among other things, it nately, that there is a real plain- to halt the deal. “I was so livid,” she told Reuters she did not receive any money from Gardy & No-
court. AFP of the buyout cases, including the well-known limited each shareholder to serving as a tiff behind this.” in an interview. tis. She said she was referred to the firm by people
O
n June 25, stock-picker and TV commen- Kramer — who has written for the New York class action specialists Robbins Geller Rudman lead plaintiff five times in a three-year Kramer told Reu- In late May 2011, however, a little over two she knew. “I called lawyer friends and this friend
LITIGATION tator Hilary Kramer urged her website Post, MarketWatch.com and Forbes.com, and has & Dowd of San Diego and Faruqi & Faruqi of New period. However, the law didn’t ters that she was months after filing suit, Kramer and other plain- and that friend,” she said.
US investor with subscribers to sell their shares in a medi- been a regular commentator on Fox Business News
cal supply company. The stock had just soared on and Reuters — said in an interview that she gets
York. A few plaintiffs’ names crop up repeatedly, apply to state courts. unaware
Strine’s rul-
of tiffs agreed to a settlement that neither stopped
the deal nor changed the price. It merely required
Kramer appears to have made only one refer-
ence to an investor class action in her stock-tip
more than 40 a buyout announcement. no money from her cases. She said she challenges
“Our next move here is to lock in our hefty gains buyouts to make sure small investors are getting
Animal Health to disclose in securities filings some
technical details about the buyout negotiations,
newsletters. Bearing titles such as “Game Chang-
ers,” “Breakout Stocks Under $10” and “Inner Cir-
pending cases of over 100 per cent,” she wrote. the price they deserve. “Also, to show my subscrib- Litigation vs investment By the end of August 2014, Kramer, her husband such as that its adviser considered “unlevered free cle Pro,” the publications carry a list price of as
The buyout of Medical Action Industries Inc ers that I’m going to flex my muscles and show and her hedge fund had filed class actions in 17 cash flow” in determining if the price was fair. much as $3,500 (Sh319,973.50) a year.
over mergers came just weeks after Kramer had recommend- strength and lead for them,” she told Reuters. Stock-picker and TV commentator Hilary Kramer has sued to stop states, according to court records and data In all, the disclosures added fewer than five Referring to the $116 million (Sh11,300.80)
ed the stock. She later hailed it as one of her best Despite her claims to be demonstrating clout supplied by Cornerstone Research. She and her pages to Animal Health’s 75-page proxy statement. sale of Morton’s Restaurant Group in December
turns to courts picks of 2014. on their behalf, however, Kramer doesn’t appear
about $100 billion (Sh9.1 trillion) worth of corporate deals.
husband were appointed lead plaintiff or co- Animal Health denied any wrongdoing and said 2011, Kramer mentioned that “an investor has
But on June 26, one day after trumpeting the to have divulged her class actions to her subscrib- lead plaintiff at least 19 times. in court papers that it settled “to avoid lengthy sued” and noted that “these types of suits almost
seeking higher buyout in her newsletter, Kramer had something ers, a Reuters review of her newsletters found. Nor
A search of court records shows only one instance of a payment
to Kramer herself: a $2,000 (Sh182,842) fee awarded by a California and time-consuming litigation”. never have any impact.” She didn’t mention that
Fifteen of the 19 cases in which she was
buyout prices very different to say about it court: She filed a class has she mentioned her role as a repeat plaintiff
action lawsuit against Medical Action, to her TV viewers. Asked whether
judge to compensate her for the 15 to 30 hours she spent on a lawsuit
over the buyout of commercial landlord MPG Office Trust. appointed lead or co-lead plaintiff settled for
For that, the law firm representing Kramer,
Gardy & Notis, along with four firms that rep-
she was the investor.
In a December interview with Reuters, Kramer
for shareholders accusing the company of agreeing to
a sale price so low that it would cause
she discloses the suits to subscrib-
ers, she said she would show Reu- Firms representing all plaintiffs involved in class actions in which
more details about the deal negotiations,
with no money going to shareholders. The
resented other plaintiffs, collected attorney’s
fees of $525,000.
said she did not discuss her litigation with viewers
and subscribers because “my objective is based
shareholders “irreparable harm”. K≥ame≥ is a ters the language she had used, but Kramer has a leading role have earned at least $14 million (Sh1.3 others were dismissed at the plaintiffs’ In court papers, Gardy & Notis didn’t dis- on valuation and based on fundamentals of the
It wasn’t the first time Kramer had never provided it. billion), Reuters calculates. request. close its portion of the take, but said it worked numbers, and not everyone is really interested in
sued to stop a buyout. In fact, by the
sophisticated And as for fellow shareholders: 416.5 hours of a total 920 hours billed by plain- talking about cases.”
time she went to court to complain investo≥ who Her cases have never yielded a penny According to Cornerstone Research, a consulting firm, 94 per cent What is certain is that defendants tiffs’ lawyers. Shareholders got nothing. The most recent class action filed in Kramer’s
paid at least $14 million
about Medical Action, Kramer had has pu≥sued for them. of all merger and acquisition deals worth at least $100 million (Sh9.1
(Sh1.3 billion) in fees to
Kramer said she received no money as a name came in June. She and another plaintiff,
already filed more than 40 similar A search of court records shows billion) were challenged by a class action in 2013. In 2007 the number result of the case. Animal Health declined to represented by lawyers at Gardy & Notis and Rob-
sha≥eholde≥ was just 44 per cent. shareholder attorneys
lawsuits against other companies in- only one instance of a payment to comment. bins Geller, sued to stop the buyout of surgical-
volved in mergers or acquisitions. advocacy th≥ough Kramer herself: a $2,000 (Sh182,842) to settle the cases
supplies maker Medical Action Industries. Four
Kramer, for example, sued to stop the $3.2 billion (Sh292.5 billion) in which Kramer
That makes her the most litigious litigation fee awarded by a California judge to
had a lead role.
Litigation campaign months later, Medical Action agreed to disclose
of all American individual investors compensate her for the 15 to 30 hours sale of Transatlantic Holdings when she held only two shares of the The Animal Health lawsuit marked the start of additional information that it characterised as
MARK GARDY, LAWYER, reinsurance company’s stock, according to court records. Gardy & Notis
who have sued to block buyout deals, she spent on a lawsuit over the buy- a remarkable litigation campaign by Kramer “immaterial and unnecessary.”
GARDY & NOTIS stood to collect
according to a Reuters analysis of court out of commercial landlord MPG and Gardy & Notis. The case ended there — except for a dispute
Of the 77 settlements reached in 2014, only five produced more about $1.5 million
cases dating back to 2011. All told, she has sued Office Trust. (Sh137 million) In early May 2011, five weeks after suing Ani- between Medical Action and Kramer’s attorneys
to stop about $100 billion (Sh9.1 trillion) worth Her lawyers, on the other hand, got a payout for than $5 million (Sh457 million) for shareholders, according to mal Health and before reaching a settlement in over the legal fees, which is ongoing.
Cornerstone Research. of that, based
of corporate deals. every settlement. Firms representing all plaintiffs on the share the case, they began filing almost identical cases The two law firms argue they should get
Kramer is in the vanguard of a new type of involved in class actions in which Kramer has a of the billable against other companies, sometimes within a $925,000 (Sh84.6 million). Medical Action says
In addition to the 40 cases that were filed by Kramer, at least six
mass litigation. The kind of class action she brings leading role have earned at least $14 million (Sh1.3 hours the firm day of a deal announcement. they deserve zero.
more were filed by either her husband or her hedge fund, Greentech
is booming, with lawyers rushing into court al- billion), Reuters calculates. That figure does not claimed in the They sued over buyouts of companies rang- Kramer told Reuters in June she had stopped
Research LLC. Their total of 46 suits is at least 50pc greater than that
most as soon as any merger or acquisition is an- include fees in seven cases for which records are cases. The rest ing from California Pizza Kitchen to Interna- bringing cases, in part because she thought compa-
of the individual who appeared second-most frequently in the analysis.
nounced to argue that the sale price is too low. not available and four cases for which fees have of the money tional Coal Group Inc. In the month of May 2011 nies were being sold for fair prices. But she may not
The US Chamber of Commerce calls the cases yet to be awarded. In 2006, a leading class action firm then known as Milberg Weiss went to firms alone, Kramer and Gardy & Notis launched be completely out the game. Her fund, Greentech
“extortion through litigation.” Plaintiffs’ lawyers Buyout lawsuits by Kramer and others have Bershad & Schulman was indicted for paying kickbacks to plaintiffs to representing four class actions. Research, filed a case as recently as August.
say the lawsuits are a check on company direc- been flooding into state courts in recent years, file cases. Four partners were sentenced to prison, and the firm paid other Hillary Kramer. Later that summer, Kramer switched to fil- Of her lawyers, she said: “It seems like they
tors and advisers who may not be watching out since Congress and judges made it harder for $75 million (Sh6.9 billion) to end the case. plaintiffs. ILLUSTRATION BY STANSLAUS ing suits primarily under her married name, are doing well.”
for shareholders. shareholders to sue in federal court. MANTHI Hilary Coyne. The next year, her husband, - REUTERS
16 BUSINESS DAILY | Monday February 23, 2015 Monday February 23, 2015 | BUSINESS DAILY 17
NEWS INDEPTH NEWS INDEPTH
too. But since her first case in 2011, no one has come The recent surge of state court class actions ing and that she was a valid investor advocating Timothy Coyne, a former New York City police
close to the volume filed by Kramer. She is always has so far drawn little scrutiny from lawmakers. on behalf of other Transatlantic shareholders. lieutenant, filed his first of four cases. Kramer’s
According to Cornerstone Research, a consult- represented by Gardy & Notis, a six-attorney con- The suits haven’t gone unnoticed, to be sure: The Kramer, who is 50 according to public records, hedge fund, Greentech Research, brought at least
ing firm, 94 per cent of all merger and acquisition tingency-fee firm with offices in Englewood Cliffs, settlements and the attorney fees, including those grew up in New Jersey, the daughter of an ac- two cases.
deals worth at least $100 million (Sh9.1 billion) N.J., and New York City. in Kramer’s cases, are reviewed for fairness and countant. A longtime friend of Kramer’s, former Kramer said she used her married name when
were challenged by a class action in 2013. In 2007 In addition to the 40 cases Reuters identified approved by judges. U-2 spy plane pilot Cholene Espinoza, described she held shares in a joint account with her hus-
the number was just 44 per cent. that were filed by Kramer, at least six more were But in Delaware, where most publicly traded the family as frugal. “They recycled their Ziploc band. Coyne could not be reached for comment.
The lawsuits are often nearly identical. They filed by either her husband or her hedge fund, US companies are incorporated and most of these bags,” she said. By the end of August 2014, Kramer, her hus-
parrot recent earnings statements or analyst re- Greentech Research LLC. Their total of 46 suits cases are filed, some judges have started to exam- In her 2011 book, The Little Book of Big Profits band and her hedge fund had filed class actions
ports as purported evidence that the price of a is at least 50 per cent greater than that of the in- ine the settlements more carefully. from Small Stocks, Kramer wrote that she scored in 17 states, according to court records and data
buyout is too low. They are filed within days of a dividual who appeared second-most frequently Among them is Travis Laster, a judge on Dela- her first big investing success in 1987, when she supplied by Cornerstone Research. She and her
deal announcement, as the challengers race to in the analysis. ware’s Court of Chancery, one of the most com- bought shares on the cheap after “Black Monday.” husband were appointed lead plaintiff or co-lead
be named “lead plaintiff,” entitling them to agree Mark Gardy of Gardy & Notis said in an email monly used forums for corporate disputes. He By the time she was 30, she has said, she was a mil- plaintiff at least 19 times.
to a settlement on behalf of the class. The role that “Kramer is a sophisticated investor who has has said that real corporate wrongdoing may go lionaire. She worked as an analyst and investment Most of their cases were brought within six
often allows their lawyers to collect the largest pursued shareholder advocacy through litigation.” undetected: Plaintiffs’ lawyers rush to file rather banker at Morgan Stanley and Lehman Broth- days of a deal announcement and settled within
share of the fees. Sometimes the lead plaintiff He added: “A lot of well-known activists employ than investigate potential problems, and defence ers, and managed a multibillion-dollar portfolio two months of being filed. In all cases, they were
holds only a tiny handful of shares in the de- the same law firms to file lawsuits against multi- lawyers would rather pay to settle even a meritless at the Cisneros Group of Companies, according represented by Gardy & Notis.
fendant company, meaning they have virtually ple companies.” case than delay the closing of a deal. to resumes she has posted online. She owns two It is unclear exactly what Kramer gained from
no money at stake. The new M&A class action litigation is remi- “The plaintiffs’ law firm gets what it wants: a Manhattan condos and co-owns a third. all this. Fifteen of the 19 cases in which she was ap-
niscent of the boom in shareholder class actions of fee. The defendants get what they want: a release By 2011, Kramer was the editor of her stock- pointed lead or co-lead plaintiff settled for more
Buyout cases the 1990s. Those lawsuits, too, were often brought of all claims against them. The defence lawyers picking newsletters. She was also affiliated with details about the deal negotiations, with no money
Kramer, for example, sued to stop the $3.2 billion by investors with tiny holdings, working with a get paid, usually by insurers,” Laster said in an two New York companies, Finance Scholars Group going to shareholders. The others were dismissed
(Sh292.5 billion) sale of Transatlantic Holdings handful of law firms. The lawyers hit companies email to Reuters. In a 2010 opinion involving and VJL Consulting, that provide services such at the plaintiffs’ request.
when she held only two shares of the reinsurance with cookie-cutter suits and secured settlements the proposed sale of Revlon Inc, Laster derided as expert witnesses to law firms, according to her “I feel bad,” Kramer said. “I really did want try to
Top TV stock-picke≥ leads

company’s stock, according to court records. that resulted in massive attorneys’ fees. some plaintiffs’ firms as “Pilgrims,” because, he LinkedIn profile and an online resume. She was see a valuation paid that is fair to shareholders.”
A trader works on In most buyout lawsuits, the settlements, too, Back then, the trigger was a drop in a compa- quipped: “Firms who are early filers are frequently a contributor for Forbes.com and an occasional What is certain is that defendants paid at least
the floor of the are almost identical: The defendants agree to ny’s stock price, and the boilerplate allegation was early settlers.” TV commentator, as well. $14 million (Sh1.3 billion) in fees to shareholder
New York Stock disclose a bit more information about the deal violations of federal securities laws. Corporations Another Delaware judge, Leo Strine, learned That February, she went on the PBS “Nightly attorneys to settle the cases in which Kramer had
Exchange. Buyout negotiations in return for a release from liabil- suspected that law firms were choosing plaintiffs while presiding over Kramer’s case challenging Business Report” with a stock tip: She told view- a lead role. Gardy & Notis stood to collect about
onslaught of class action

lawsuits have ity. They also agree to pay the plaintiffs’ lawyers who were little more than figureheads. the sale of Transatlantic Holdings that she held ers that the share price of Animal Health Interna- $1.5 million (Sh137 million) of that, based on the
been flooding a mid-six-figure fee for what is typically just a In 2006, a leading class action firm then known only two shares of the company. In a rare move, tional, a maker of livestock medicine, “could really share of the billable hours the firm claimed in the
into state courts couple of months’ work. as Milberg Weiss Bershad & Schulman was in- Strine rejected the settlement. double” as a result of a commodities boom. cases. The rest of the money went to firms rep-
in recent years, Shareholders, and the plaintiffs who file a case, dicted for paying kickbacks to plaintiffs to file “I think that makes plaintiff Kramer not at all A few weeks later, a rival unexpectedly swooped resenting other plaintiffs who filed class actions
suits against acquisitions

since Congress almost never get a thing. Of the 77 settlements cases. Four partners were sentenced to prison, typical of any kind of rational investor in a com- in to buy the company, but the price rose only over the same deals.
and judges made reached in 2014, only five produced more than and the firm paid $75 million (Sh6.9 billion) to pany,” said Strine, then the head of the Court of about 10 per cent. Kramer filed a lawsuit against
it harder for $5 million (Sh457 million) for shareholders, ac- end the case. Chancery, according to a transcript of the 2013 Animal Health’s board in Delaware state court, Immaterial and unnecessary
shareholders cording to Cornerstone Research. Congress in 1995 passed a law that sought to hearing. “I don’t have any confidence, unfortu- claiming the buyout price was too low and seeking In her June interview with Reuters, Kramer said
to sue in federal A dozen or so plaintiffs’ law firms file the bulk curtail such abuses. Among other things, it nately, that there is a real plain- to halt the deal. “I was so livid,” she told Reuters she did not receive any money from Gardy & No-
court. AFP of the buyout cases, including the well-known limited each shareholder to serving as a tiff behind this.” in an interview. tis. She said she was referred to the firm by people
O
n June 25, stock-picker and TV commen- Kramer — who has written for the New York class action specialists Robbins Geller Rudman lead plaintiff five times in a three-year Kramer told Reu- In late May 2011, however, a little over two she knew. “I called lawyer friends and this friend
LITIGATION tator Hilary Kramer urged her website Post, MarketWatch.com and Forbes.com, and has & Dowd of San Diego and Faruqi & Faruqi of New period. However, the law didn’t ters that she was months after filing suit, Kramer and other plain- and that friend,” she said.
US investor with subscribers to sell their shares in a medi- been a regular commentator on Fox Business News
cal supply company. The stock had just soared on and Reuters — said in an interview that she gets
York. A few plaintiffs’ names crop up repeatedly, apply to state courts. unaware
Strine’s rul-
of tiffs agreed to a settlement that neither stopped
the deal nor changed the price. It merely required
Kramer appears to have made only one refer-
ence to an investor class action in her stock-tip
more than 40 a buyout announcement. no money from her cases. She said she challenges
“Our next move here is to lock in our hefty gains buyouts to make sure small investors are getting
Animal Health to disclose in securities filings some
technical details about the buyout negotiations,
newsletters. Bearing titles such as “Game Chang-
ers,” “Breakout Stocks Under $10” and “Inner Cir-
pending cases of over 100 per cent,” she wrote. the price they deserve. “Also, to show my subscrib- Litigation vs investment By the end of August 2014, Kramer, her husband such as that its adviser considered “unlevered free cle Pro,” the publications carry a list price of as
The buyout of Medical Action Industries Inc ers that I’m going to flex my muscles and show and her hedge fund had filed class actions in 17 cash flow” in determining if the price was fair. much as $3,500 (Sh319,973.50) a year.
over mergers came just weeks after Kramer had recommend- strength and lead for them,” she told Reuters. Stock-picker and TV commentator Hilary Kramer has sued to stop states, according to court records and data In all, the disclosures added fewer than five Referring to the $116 million (Sh11,300.80)
ed the stock. She later hailed it as one of her best Despite her claims to be demonstrating clout supplied by Cornerstone Research. She and her pages to Animal Health’s 75-page proxy statement. sale of Morton’s Restaurant Group in December
turns to courts picks of 2014. on their behalf, however, Kramer doesn’t appear
about $100 billion (Sh9.1 trillion) worth of corporate deals.
husband were appointed lead plaintiff or co- Animal Health denied any wrongdoing and said 2011, Kramer mentioned that “an investor has
But on June 26, one day after trumpeting the to have divulged her class actions to her subscrib- lead plaintiff at least 19 times. in court papers that it settled “to avoid lengthy sued” and noted that “these types of suits almost
seeking higher buyout in her newsletter, Kramer had something ers, a Reuters review of her newsletters found. Nor
A search of court records shows only one instance of a payment
to Kramer herself: a $2,000 (Sh182,842) fee awarded by a California and time-consuming litigation”. never have any impact.” She didn’t mention that
Fifteen of the 19 cases in which she was
buyout prices very different to say about it court: She filed a class has she mentioned her role as a repeat plaintiff
action lawsuit against Medical Action, to her TV viewers. Asked whether
judge to compensate her for the 15 to 30 hours she spent on a lawsuit
over the buyout of commercial landlord MPG Office Trust. appointed lead or co-lead plaintiff settled for
For that, the law firm representing Kramer,
Gardy & Notis, along with four firms that rep-
she was the investor.
In a December interview with Reuters, Kramer
for shareholders accusing the company of agreeing to
a sale price so low that it would cause
she discloses the suits to subscrib-
ers, she said she would show Reu- Firms representing all plaintiffs involved in class actions in which
more details about the deal negotiations,
with no money going to shareholders. The
resented other plaintiffs, collected attorney’s
fees of $525,000.
said she did not discuss her litigation with viewers
and subscribers because “my objective is based
shareholders “irreparable harm”. K≥ame≥ is a ters the language she had used, but Kramer has a leading role have earned at least $14 million (Sh1.3 others were dismissed at the plaintiffs’ In court papers, Gardy & Notis didn’t dis- on valuation and based on fundamentals of the
It wasn’t the first time Kramer had never provided it. billion), Reuters calculates. request. close its portion of the take, but said it worked numbers, and not everyone is really interested in
sued to stop a buyout. In fact, by the
sophisticated And as for fellow shareholders: 416.5 hours of a total 920 hours billed by plain- talking about cases.”
time she went to court to complain investo≥ who Her cases have never yielded a penny According to Cornerstone Research, a consulting firm, 94 per cent What is certain is that defendants tiffs’ lawyers. Shareholders got nothing. The most recent class action filed in Kramer’s
paid at least $14 million
about Medical Action, Kramer had has pu≥sued for them. of all merger and acquisition deals worth at least $100 million (Sh9.1
(Sh1.3 billion) in fees to
Kramer said she received no money as a name came in June. She and another plaintiff,
already filed more than 40 similar A search of court records shows billion) were challenged by a class action in 2013. In 2007 the number result of the case. Animal Health declined to represented by lawyers at Gardy & Notis and Rob-
sha≥eholde≥ was just 44 per cent. shareholder attorneys
lawsuits against other companies in- only one instance of a payment to comment. bins Geller, sued to stop the buyout of surgical-
volved in mergers or acquisitions. advocacy th≥ough Kramer herself: a $2,000 (Sh182,842) to settle the cases
supplies maker Medical Action Industries. Four
Kramer, for example, sued to stop the $3.2 billion (Sh292.5 billion) in which Kramer
That makes her the most litigious litigation fee awarded by a California judge to
had a lead role.
Litigation campaign months later, Medical Action agreed to disclose
of all American individual investors compensate her for the 15 to 30 hours sale of Transatlantic Holdings when she held only two shares of the The Animal Health lawsuit marked the start of additional information that it characterised as
MARK GARDY, LAWYER, reinsurance company’s stock, according to court records. Gardy & Notis
who have sued to block buyout deals, she spent on a lawsuit over the buy- a remarkable litigation campaign by Kramer “immaterial and unnecessary.”
GARDY & NOTIS stood to collect
according to a Reuters analysis of court out of commercial landlord MPG and Gardy & Notis. The case ended there — except for a dispute
Of the 77 settlements reached in 2014, only five produced more about $1.5 million
cases dating back to 2011. All told, she has sued Office Trust. (Sh137 million) In early May 2011, five weeks after suing Ani- between Medical Action and Kramer’s attorneys
to stop about $100 billion (Sh9.1 trillion) worth Her lawyers, on the other hand, got a payout for than $5 million (Sh457 million) for shareholders, according to mal Health and before reaching a settlement in over the legal fees, which is ongoing.
Cornerstone Research. of that, based
of corporate deals. every settlement. Firms representing all plaintiffs on the share the case, they began filing almost identical cases The two law firms argue they should get
Kramer is in the vanguard of a new type of involved in class actions in which Kramer has a of the billable against other companies, sometimes within a $925,000 (Sh84.6 million). Medical Action says
In addition to the 40 cases that were filed by Kramer, at least six
mass litigation. The kind of class action she brings leading role have earned at least $14 million (Sh1.3 hours the firm day of a deal announcement. they deserve zero.
more were filed by either her husband or her hedge fund, Greentech
is booming, with lawyers rushing into court al- billion), Reuters calculates. That figure does not claimed in the They sued over buyouts of companies rang- Kramer told Reuters in June she had stopped
Research LLC. Their total of 46 suits is at least 50pc greater than that
most as soon as any merger or acquisition is an- include fees in seven cases for which records are cases. The rest ing from California Pizza Kitchen to Interna- bringing cases, in part because she thought compa-
of the individual who appeared second-most frequently in the analysis.
nounced to argue that the sale price is too low. not available and four cases for which fees have of the money tional Coal Group Inc. In the month of May 2011 nies were being sold for fair prices. But she may not
The US Chamber of Commerce calls the cases yet to be awarded. In 2006, a leading class action firm then known as Milberg Weiss went to firms alone, Kramer and Gardy & Notis launched be completely out the game. Her fund, Greentech
“extortion through litigation.” Plaintiffs’ lawyers Buyout lawsuits by Kramer and others have Bershad & Schulman was indicted for paying kickbacks to plaintiffs to representing four class actions. Research, filed a case as recently as August.
say the lawsuits are a check on company direc- been flooding into state courts in recent years, file cases. Four partners were sentenced to prison, and the firm paid other Hillary Kramer. Later that summer, Kramer switched to fil- Of her lawyers, she said: “It seems like they
tors and advisers who may not be watching out since Congress and judges made it harder for $75 million (Sh6.9 billion) to end the case. plaintiffs. ILLUSTRATION BY STANSLAUS ing suits primarily under her married name, are doing well.”
for shareholders. shareholders to sue in federal court. MANTHI Hilary Coyne. The next year, her husband, - REUTERS
REGIONAL NEWS
RESOURCES Former symbol of colonial power now a lifeline for people who live by lake shore BRIEFING
Tanzanian wa≥ship that inspi≥ed N’DJAMENA

West Africa forces plan for
Boko Haram assault in March
‘Af≥ican Queen’ still going at 100 Niger, Chad and Cameroon are seeking to
pin down Boko Haram within Nigeria’s bor-
ders ahead of a ground-and-air offensive by
a regional task-force due to start from the
O
n Lake Tanganyika, a cen- defending the waters against Belgian end of next month, a senior Niger military
tury-old relic of World War I and British soldiers. official told Reuters. The Islamist group,
that became the stuff of Hol- Measuring 70 meters (230 feet) long which has killed thousands of people in a
lywood legend still plies the slate-grey and weighing 1,200 tonnes the Graf von six-year insurgency in Nigeria, has fought
waters -- but it is not clear for how Götzen dominated the lake for nearly a fierce battles with the three countries’ ar-
much longer. year, dwarfing all other ships. But when mies in southern Niger and northern Cam-
Once a feared gunship defending the outnumbered German land forces eroon, near Nigeria’s borders, in recent
the African lake for Kaiser Wilhelm retreated the warship was filled with weeks. Chadian forces have made incur-
II of Germany, the legendary vessel - cement and scuttled. The Belgians sal- sions into Nigeria to push back the jihad-
- which inspired the 1951 classic “The vaged the Graf von Götzen, towing her ist fighters, hundreds of whom have been
African Queen” -- has been sunk and to Kigoma harbour after the war but killed. Military chiefs meet next week to
refloated twice, renamed and repur- she sank again during a storm. finalise strategy.
posed as a ferry. As it marks 100 years In 1921, Winston Churchill ordered
of service, the MV Liemba, originally the ship raised once more. Despite the
CAPE TOWN
a symbol of colonial power, is now an years submerged the Graf von Gotzen
essential lifeline for the people who was still useable because the German South Africa’s President denies
live along the lake shore. crew, hoping to see the ship sail again, racist tag, assures whites
“Liemba is the only safe means of had coated the engines in thick protec- South African President Jacob Zuma on
transport along the lake,” said Mathew The restored warship today christened MV Liemba. AFP tive grease before sinking her. Thursday denied that he was a racist and
Mathia Mwanjisi, the ship’s captain. Rechristened the MV Liemba, after assured white people that they should not
“Historically it’s very important to alongside to sell fresh mangos. Farm- be cheaper to simply replace the MV the local name for the lake, it was put fear being “chased” out of Nelson Mande-
Tanzania as a country, but again it’s ers and fishermen haggle over prices. Liemba with a new ferry, ending a cen- into service as a cargo and passenger la’s “Rainbow Nation”. The president also
very important for the people along Launches laden with revellers come to tury of fascinating history. ferry in 1927. The original steam en- said that a new law preventing foreign
the coast of Lake Tanganyika.” welcome newlyweds home. Lai Bakari “It is carrying the history of the gines continued to operate until the ownership of land in South Africa applied
The tale of the warship and the bat- Kiunguti is a ship-bound trader with country,” said Bertram Mapunda, mid-1970s when they were replaced only to agricultural properties and not to
tle for lake Tanganyika inspired Brit- a makeshift stall below deck to serve a professor of history at Tanzania’s with diesel. Subsequent books, such private residences. Mr Zuma was reacting
ish novelist C.S. Forester to write his the ship’s passengers. Like many oth- University of Dar es Salaam. Mapun- as Giles Foden’s Mimi and Toutou Go to concerns raised by some white South
1935 novel “The African Queen”, later ers, her livelihood depends on the boat, da said the ship should be celebrated, Forth, have also explored the ship’s Africans after he told a rally of his ruling
adapted by Hollywood in the movie and as the MV Liemba ages she worries and preserved, just as German colo- history and its role in the Great War’s African National Congress that all the coun-
of the same name starring Humphrey for the future. nial-era buildings and railway lines East African campaign. try’s troubles began when the first white
Bogart and Katherine Hepburn. Piled “When the Liemba stops travelling are throughout the country. The MV The MV Liemba has also seen the settlers landed more than 300 years ago.
high with pineapples, maize and rice I will stay at home. That would make Liemba began its life in a shipyard in effects of more recent conflicts in Bu- “South Africa belongs to all who live in it,
-- as well as up to 600 passengers -- the me poor because it means I wouldn’t Papenburg, Germany, in 1913 where rundi and the Democratic Republic black and white,” he told parliament.
MV Liemba navigates the world’s long- work,” she said. it was named the Graf von Götzen of Congo. In 1997, she was used by
est lake every two weeks, from Kigoma, The MV Liemba requires constant after German East Africa’s former the United Nations refugee agency MBABANE
Tanzania, in the north to Mpulungu, maintenance, and may not stay afloat governor. (UNHCR) to carry more than 75,000
Zambia, in the south. much longer without a complete over- Before setting sail, the steamer was refugees returning home to DR Congo Mswati calls for protection
The journey of some 600 kilome- haul. Tanzania asked the German gov- taken apart, packed into 5,000 num- after fleeing war. against pro-democracy groups
tres is meant to take some three days, ernment for help repairing or replacing bered crates, and shipped to Dar es Today captain Mwanjisi says he is Swaziland’s King Mswati III has urged his
but is often longer as the ship hops the vessel in 2011 and KfW, a German Salaam. Then it was taken by railway proud to work aboard this storied ves- subjects to “protect the country” from pro-
from village to village, transforming government-owned development and porter to the shore of Lake Tangan- sel and of the vital serviceit provides. democracy groups which portrayed a neg-
into a lively aquatic carnival at each bank, is assessing whether rehabili- yika where it was reassembled in 1915, ative image of the nation abroad. Africa’s
stop. Children in leaky canoes paddle tation might be possible. But it may armed with cannon, and put to work -AFP last absolute monarch told the opening of
parliament that such activities had robbed
Swaziland of good opportunities.“It should
Families panic as last US bank cut ties with Somalia

deeply concern us when we hear people
who have no knowledge of our culture por-
traying it in bad light on some foreign fo-
rums,” he said. “It has deprived the nation
Somali families are panicking and ended remittance services to Soma- Hassan Hussein Bulale’s only source of key benefits that could contribute hand-
businesses are running short of lia over the last few years because of of income is $50 a month from a rela- somely to our sustainable development.
funds two weeks after the last major regulations that hold banks responsi- tive in the US. “If that money stops, it
US bank stopped transferring money ble if they transfer funds to “terrorist” will be devastation,” the elderly man,
JUBA
to the fragile Horn of Africa country, groups like Somalia’s al Shabaab. who lives in the city of Hargeisa, told
development groups said. Merchants Bank handled 60 to 80 Oxfam. South Sudan rebels spokesman
Somalia has no formal banking per cent of the money sent to Somalia While most transactions are a few quits peace negotiations
system due to decades of war, so So- from the US, which is the country’s hundred dollars sent to needy family A military spokesman for South Sudan’s
malis living abroad use money trans- biggest source of remittances, Adeso members, it is Somali business people rebels has quit, saying slow-moving peace
fer companies to send some Sh119 bil- and Oxfam said. and traders, trying to transfer thou- negotiations to end the ethnic-fuelled con-
lion home each year - far more than “There has been quite a lot of A Somali man withdraws money from sands of dollars, who have started flict were ignoring the demands of smaller
the country receives in aid, Oxfam panic from the diaspora with some an ATM. FILE feeling the impact of the Merchants factions. The move by Lul Ruai Koang, for-
and Adeso said in a report. (money transfer) branches actually Bank account closures. merly a rebel spokesman for military affairs,
Merchants Bank of California being closed,” said Degan Ali, the #IFundFoodNotTerror.“The money “Cash-flow is becoming a problem highlights the challenge of healing deep
closed its accounts with Somali- Somali-American executive direc- I send back to Somalia helps my in the system,” said Adeso’s Ali. “(The) divisions in a nation that only gained inde-
American transfer companies on tor of the charity Adeso. “There is siblings go to school,” tweeted Ifrah pipeline of cash coming in from the pendence in 2011, and has been torn apart
February 6, cutting off a lifeline to a bit of scrambling trying to find Ahmed. “They are not terrorists.” US is decreasing.”Somalia’s remit- by more than a year of fighting. Koang flew
millions in a country plagued by wide- alternative (money transfer op- Some 40 per cent of Somalis rely tance crisis has been intensifying back from Ethiopia, where the peace talks
spread hunger, recurrent drought and erators) to work with.”The Somali on remittances for daily needs, such for years. have been held, to government-controlled
an Islamist insurgency. community in the US has started a as food, medicines and school fees, Juba and was greeted by security officials
Virtually all major US banks have Twitter campaign using the hashtag Adeso said. Blind and white-haired, -REUTERS of President Salva Kiir, an ethnic Dinka.
MONEY & MARKETS

NSE inches towa≥d Co-op pushes

fo≥ 60pc pie to
seven-yea≥ high on banking agents
Safa≥icom’s gains
BY JOHN GACHIRI
Co-operative Bank has reviewed its

tariffs as it seeks pushing 60 per cent
of transactions to agencies and mobile
TRADING Market shrugs off negative effects of money platform to reduce costs.
The bank has dropped the Sh20
capital gains tax as NSE 20 index hits new high NSE 20 Share Index
Feb 2008-Feb 2015 (Pts)
charged on deposits made through
an agent and Sh50 charged on rent
BY CHARLES MWANIKI There is a lot of liquidity in the money The NSE, buoyed by gains in the big- and schoolfees payments.
market at the moment, and it is tran- ger counters, has risen to its highest Co-operative Bank director for re-
Nairobi Securities Exchange (NSE) siting into the apex markets such as level since June 2008. tail banking Maurice Matumo said
is edging towards a seven-year high that of equities. We have also seen the the use of agencies and mobile-money
largely lifted by Safaricom which on big cap counters dominate demand, would allow staff to concentrate on
Friday set a new all-time trading peak with the market’s fortunes tied to the A client monitors trading on the Nai- other core activities.
of Sh15.50. improving general economic perform- robi Securities Exchange’s electronic “Reduction of customer numbers
The market shrugged off negative ance,” said Mr Nderi. board. Activity in the market continued inside the branches will free staff time
effects of the capital gains tax contro- Safaricom, by virtue of being the to improve on Friday. FILE to provide more personal attention
versy to hit a six-year eight-month largest listed company with a valua- to customers, especially those who
high on Friday with demand aided tion of Sh615 billion (25 per cent of require greater face-to-face interac-
by a highly liquid money market total), carries tion, such as financial advice,” said
market. a large weight in the research and analysis firm HTM Cap- Mr Matumo.
The NSE 20 share index indices. ital said they expected the economy Co-op Bank has recently conclud-
closed at 5,465 points, the The p≥evailing Other blue chips SOURCE: REUTERS to benefit from one-off additions of ed a retrenchment programme driven
highest since June 2008, moneta≥y policy that gained last week between two and 2.5 per cent from by Mckinsey aimed at reducing its
with market capitalisation included East Africa bank who did not wish to be named infrastructure projects such as the high cost of operation.
standing at Sh2.45 trillion.
envi≥onment Breweries Ltd (EABL) commenting on the threatened mar- standard gauge railway. The maximum daily amount that
Market analysts say the is a big facto≥ in which rose four per ket boycott by brokers. Lower fuel prices expected to re- can be withdrawn through the ATMs
uncertainty that has seen p≥icing cent to Sh345, while The outlook for the economy has sult in falling general prices should has been doubled to Sh40,000 from
the market record low Equity Bank gained been brighter this year, with a host of boost consumption which bodes Sh20,000.
trading turnover this year JOHNSON NDERI
nearly three per cent institutions and analysts, most notably well for services and consumer goods Co-op aims to have the bulk of
notwithstanding, the pric- ABC CAPITAL CORPORATE FINANCE to Sh54.50. the Treasury, expecting output to grow companies. transactions conducted through
ing is being determined by MANAGER Activity in the at a minimum six per cent compared Listed manufacturing companies ATMs, agencies and mobile banking
entirely different factors, market continued to to about 5.3 per cent in 2014. are eyeing dividend from participating platforms.
including prospects of eco- improve as well, with The Treasury expects the economy in the big infrastructure projects, a fac- Analysts say as more customers
nomic growth. turnover rising to Sh4.2 billion from to expand by 6.9 per cent thanks to tor already seen as positively impacting use alternative channels transaction
ABC Capital corporate finance Sh4 billion week-on-week. momentum picking up in a range of the valuations of cement stocks. costs for banks are bound to fall.
manager Johnson Nderi said as long “The market was buoyant today sectors like farming, real estate and Road, railway, energy and airport “Cheaper banking channels (such
as there is demand and supply of (Friday) matching the activity of the financial services. projects are seen as big potential win- as mobile and agency banking) should
shares, low volumes should not deter past two days, with investors not re- World Bank projects six per cent ners in the Treasury budget policy improve banks’ cost to income ratio
a price gain. acting negatively to the news yester- growth, same as Citi and ratings firm statement for Sh1.9 trillion Budget to 43.5 per cent from 50.2 per cent
“The prevailing monetary policy en- day that there might be a disruption in Fitch. Investment managers from 10 next fiscal year. currently,” said an industry report by
vironment is a big factor in pricing. trading,” said a dealer at an investment firms interviewed by Nairobi-based [email protected] London-based Exotix.
Cent≥al bank backs cheap oil impo≥ts to sho≥e up shilling

BY GEORGE NGIGI tional institutions and analysts—the against the backdrop of strengthen- have fallen by more than half, slicing
first being on IMF and Moody’s doubts ing of the dollar saw analysts predict a the value of oil imports in the country
Central Bank of Kenya (CBK) has dis- on prudency of loan provisioning in the weak shilling. which constitute nearly a third of Ken-
counted predictions that the shilling banking industry. “Our view is that the shilling will ya’s imports, at 30 per cent.
will lose against the dollar, citing re- “The Kenya shilling depreciation trade in the 90-93.50 range to the USD Central Bank is also taking comfort
duced import bill to contradict Citi and against the US dollar has been gradual in the short term (30 days) and 89-94 in in high foreign currency reserves aris-
a host of market analysts. and has now stabilised with a bias to- the medium term (180 days),” research ing from cash received in the two sov-
CBK said it is basing forecast of a wards strengthening or appreciation,” firm Stratlink said in a report released ereign bond sales made last year.
stronger local currency on the drop- said the financial market regulator in a early this month. Further, the IMF recently approved
ping fuel prices that should result in a statement posted on its website. “The Kenyan shilling is expected a precautionary loan to the government
lower import bill. On Friday, the shilling traded at 91.4 to gradually weaken in the near term. of Sh63 billion to be used to defend the
Analysts have been betting on a to the dollar, a marginal decline from Currency weakness may be driven by shilling in case of any external or inter-
weak shilling owing to low dollar in- the previous day 91.36. Shilling forecast 2015 US dollar strengthening, lower tourism nal shocks.
flows from the conventional foreign A strong shilling favours the Kenyan Consensus Economic Forecast —93.81 earnings and a widening trade deficit,” CBK proactive position is contrary
exchange earners—tourism and ag- economy whose imports hugely surpass (95.95 in two years) said investment firm Stanlib. to the laid back stance it took in 2011
riculture. exports. Poor performance by tourism Citi—94.50 A high import bill results in high de- when the shilling depreciated to lows
This is the second time in a week that industry due to security concerns and Standard Bank— 95 mand for the dollar giving it strength of 107 units to the dollar.
the regulator is responding to interna- low prices of agricultural products over the local currency. Global oil prices See also story on page 20
MONEY & MARKETS
Kenya shilling
coinciding with a period of relative ap-
Uganda Sh exchange rate Tanzania Sh exchange rate to preciation of the shilling against the
to Kenya Sh (2014-2015) Kenya Sh (2014-2015) other currencies. According to the
Both currencies have gradually Kenya Bureau of Statistics, (KNBS)
best pe≥fo≥ming
depreciated to the Kenya shilling Kenya’s exports to Uganda in the 11
over the past one year months to November 2014 stood at
Sh44.8 billion and those to Tanzania
at Sh32.24 billion.
≥egional cu≥≥ency
Exports to Uganda stood at Sh75.9
billion in 2011 while those to Tanza-
nia were Sh41.7 billion, according to
KNBS.
The total exports to African coun-
BANKING But analysts expect it to weaken tries in 2011 were Sh247.6 billion com-
pared to Sh231 billion at end of 2013 as
further to the dollar by end of the year SOURCE: REUTERS SOURCE: REUTERS per the latest annual totals.
Kenya’s other export destinations
include the Comesa region, the United
BY CHARLES MWANIKI destination. “The shilling has tended Kingdom and the Netherlands (horti-
to outperform the other regional cur- Standard Bank of South Africa see it culture).
The shilling has gained on its East rencies because Kenya has a larger bas- weakening further to the dollar, to the Real appreciation The Kenya shilling has strengthened
African peers to emerge the best per- ket of exporter proceeds than its neigh- 94.50-95 level by the end of the year. ‘‘They (CBK) are likely to welcome this over the past year to both the Euro and
forming regional currency so far this bours, such as horticulture, coffee, tea, Standard Bank noted the shilling’s moderate upward drift in the exchange the British Pound, at 11.8 and 2.7 per
year helped by a wider export base and diaspora flows, other commodities into appreciation on a trade-weighted ba- rate (to the dollar) as it would negate cent respectively. Both currencies have
strong investor inflows. the neighbouring countries, offshore sis— an indicator used to compare the real appreciation of the shilling,” said also weakened to the dollar in recent
The Ugandan shilling has depreci- flows into Kenyan debt and equities, exchange rate of a country against those Standard Bank in their African markets months as the US currency gains across
ated by 9.7 per cent this year to its Ken- and foreign exchange reserves,” said of their major trading partners— makes outlook for 2015. global markets.
yan counterpart to exchange Ecobank country treas- it unlikely that Central Bank will be too The exports to regional countries [email protected]
at 31.34 units, while the Tan- urer for Kenya Bobby keen to prop up the currency. have declined over a three-year period,
zanian shilling is exchanging Otieno.
at 20.02 units to the Kenya They (CBK) a≥e Mr Otieno said Ken-
shilling representing a 6.6 likely to welcome ya is still getting decent
per cent depreciation.
To the dollar—which
this mode≥ate
flows from conference
tourism, while the rela-
Local unit in a tight ≥ange on dolla≥ inflows
is main reference point in upwa≥d d≥ift in tive ease with which off- The Kenyan shilling was stable est since 2007. into a tight band of 91.25 to 91.75
trade—the Kenyan curren- the exchange ≥ate shore investors can enter against the dollar on Friday and trad- A Treasury bond auction of a two- against the US currency.
cy has depreciated by 1.1 per
cent this year, lower than Tan-
(to the dolla≥) as and exit the Kenyan mar-
ket and the stability of
ers said it was likely to trade in a tight year and re-opened 10-year notes “Any small move of the Kenya
range over the next few days. worth a total Sh25 billion ($273 shilling losing, people are using it
zania (5.09 per cent), Uganda it will negate ≥eal the Kenya shilling have Commercial banks posted the million) was oversubscribed, with to sell dollars,” said Ian Kahangara,
(3.3 per cent), Rwanda (1.75 app≥eciation also attracted inflows shilling at 91.40/50 per dollar, un- bids totalling Sh51 billion. a trader at National Bank.
per cent) and another key that provide the cur- changed fromThursday’s close. Traders also said the strength- The Central Bank of Kenya on
trading partner, Egypt (5.6 STANDARD BANK rency with support. The currency had firmed l, bu- ening of the local currency had Thursday said the shilling had
per cent). “Local exporters will oyed by a drop in importer demand caught some commercial banks stabilised after weakening in re-
In terms of trade, the weakening of however always advocate for a weak- for dollars and hard currency inflows off-guard, triggering a dollar sell- cent months and was now likely to
regional currencies to the Kenyan shil- er shilling so as to earn more foreign chasing high yields on local bonds off whenever the currency weak- strengthen against the greenback.
ling and the dollar creates concern for currency proceeds for their goods,” and fuelling a rally in shares that has ens slightly.
exporters given that the East African he added. sent the blue chip index to its high- This was hemming the shilling - REUTERS
countries form Kenya’s biggest export Forecasts on the shilling by Citi and
O≥ascom Const≥uction ta≥gets Sh22bn f≥om Egypt sha≥e offe≥

Orascom Construction plans to raise as controlled by Egypt’s billionaire Sawiris the smaller of Dubai’s two exchanges.
much as $241 million (Sh22 billion) in family, was once the biggest blue chip Political and investment ties between
a sale of new shares in Egypt over the on the Egyptian Exchange. Egypt and the United Arab Emirates
next few weeks, in a move that could But it effectively pulled out of the have deepened since Sisi took office
help to re-energise Cairo’s stock market bourse in 2013 when another Sawiris in 2014.
after years of political and economic company, Amsterdam-listed OCI NV, NASDAQ Dubai agreed with Egypt’s
turmoil. bought out the vast majority of its securities clearing house last year to
The company, which will offer up to shares, leaving only a tiny free float promote cross-listings, while UAE in-
15.8 million new shares representing 15 in Cairo. vestors will be able to clear their trades
per cent of its ordinary equity capital, The buyout was seen as a response in Egyptian stocks via NASDAQ Dubai,
said that it would price the shares at by the Sawiris family to tough condi- reducing risk.
between $13.33 and $15.23 each. tions under Islamist President Moham- Egypt’s stock market has surged
A bookbuilding process to determine ed Morsy. The economy deteriorated 40 per cent since the end of 2013 but
the final price for institutional investors and some members of the family were fund managers believe that to attract
will end next Thursday, Orascom Con- barred from leaving the country as part much more foreign capital, the $68
struction said in a statement. of a probe into tax evasion. billion market will need to list more
Retail investors will then be offered Now the economy is recovering blue chips.
shares between March 1 and 4 at the under President Abdel Fattah al-Sisi, EFG Hermes, CI Capital Investment
same price. A company official, speak- a former army general who oversaw and HSBC are joint bookrunners for
ing on condition of anonymity, subse- Morsy’s overthrow, and with the tax is- the Egyptian share offer, while EFG
quently told Reuters that the size of the sue resolved, the Sawiris family plan to Nassef Sawiris, chief executive officer of Orascom Construction Industries. AFP Hermes is sponsoring the Dubai list-
offer was likely to be about 10 per cent move the primary listing of their con- ing and Bank of America Merrill Lynch,
of ordinary equity capital, but a final struction assets back to Cairo. fertiliser and chemicals business. The NASDAQ Dubai. Barclays and HSBC are advisers for it.
decision had not been made. Orascom Construction is being spun construction firm plans to have a dual It would be the first listing of an
The engineering and building giant, off from OCI NV, which will retain its listing on the Egyptian Exchange and Egyptian stock on NASDAQ Dubai, -REUTERS
MONEY & MARKETS GLOBAL
G≥eece wins eu≥ozone extension

deal with st≥ict bailout conditions
ECONOMY
Deal is a tough
climb down for
popular premier
Europe on Friday granted
Greece a crucial four-month ex-
tension to its massive debt bail-
out, offering precious breathing
space, but at the cost of huge
concessions including a com- A customer prepares to pump gasoline into her vehicle at a Chevron
mitment to spell out reforms gas station in San Rafael, California.US oil output was 9.2 million
within two days. barrels a day. AFP
The 19 eurozone finance Greeks gather in front of the parliament during a pro-government demonstration in Athens. Greece
ministers reached the hard- rejected on February 16 an opening EU bailout offer as “absurd” and “unacceptable”. AFP
Oil ma≥kets edge

won deal at tense talks pitting
Greece against an angry Ger- Tomorrow, they will report back ly to the deal, with the Dow ing the co-author of reforms
many, suspicious that the new to Greece and decide whether and S&P 500 surging to fresh and of their destiny,” Varoufakis
radical leftist government in
Athens was looking to ditch its
to proceed with Friday’s agree-
ment, with the chance that the
records on Wall Street as fears
of a catastrophic exit by Greece
said, referring to the stringent
cost-cutting measures and re- up as US ≥ig count
likely to fall fu≥the≥
austerity obligations. compromise could be scrapped from the euro receded. forms attached to the original
The deal is a tough climb if officials are left unsatisfied. Two previous rounds of talks bailout.
down for popular Greek pre- Greek Finance minister failed in bitter acrimony amid But much-criticised over-
mier Alexis Tsipras, who swept Yanis Varoufakis said the deal Greek accusations that Berlin sight by Greece’s international
to power in January on a pledge marked a new era for Athens and other hardline member lenders will continue and the Oil markets edged up on Friday declined 3.7 per cent in the past
to tear-up Greek’s hated bailout and its relationship with the states were sabotaging a deal. government made a firm com- to halt a two-day drop, helped two sessions after government
programme, and he will have to European Union, after two “Everything we do is in mitment to freeze anti-austerity by expectations that data later data showed that US commer-
persuade Athens that this was painful bailouts put together my opinion for the interest of reforms so as to have them first in the day would show a con- cial crude inventories rose 7.7
the best deal possible. at the height of the debt crisis Greece,” said German Finance vetted by the eurozone. tinued decline in the US oil rig million barrels, more than dou-
“The meeting was intense to save the euro. minister Wolfgang Schaeuble, At stake for Greece is a cru- count, a clear sign of the pres- ble expectations.
because it was about building Athens claimed the rescues a conservative and Greece’s cial financial lifeline that would sure the tumble in crude has Brent has gained 34 per
trust between us,” said Euro- and the austerity measures it harshest critic who had initial- have evaporated on February 28 put on crude producers. cent from a mid-January low
group head Jeroen Dijsselblo- had to follow since its first 2010 ly rejected Athens’ request for a without a deal, including cru- A weekly survey by Baker as traders covered short posi-
em, after the talks ended with bailout had wrecked the Greek loan extension on Thursday. cial liquidity from the Europe- Hughes showed the US oil rig tions following a 60 per cent
a two-page statement setting economy, making it impos- “Being in government is a an Central Bank that is helping count fell to its lowest since Au- crash from June.
out the tough conditions Ath- sible to manage its mountain rendez-vous with reality. Quite keep Greek banks afloat. gust 2011, although US crude for
ens will have to fulfil. of debt. frequently it is not as nice as the If Athens sticks to its com- government data March delivery,
“This trust will be on the ba- “Today (Friday) was a pivotal dream,” Schaeuble added. mitments, it stands to receive indicated US oil which expires
sis of the agreements and chang- moment because Greece for five The specifics of the deal will up to 7.2 billion euros in funds output was 9.2 mil-
Eve≥ybody is later in the day,
es in the agreements which will years now has been lonely, iso- be a hard read in Athens, espe- still left in the EU portion of its lion barrels a day, looking at the was up 28 cents
have to be worked out.” lated in the Eurogroup. Today cially for supporters of the rul- 240-billion-euro bailout ($273 the highest since slowdown, which at $51.44.
In exchange for the exten- that isolation has broken,” Va- ing Syriza party who had hoped million). 1973. Trading was
sion, Greece agreed it will sub- roufakis said. for the end of the austerity and “Four months is the appro- “I assume we’re
will come in six quiet in Asian
mit a list of economic and other However, he warned: “If the creditor oversight so loathed by priate delay in terms of financ- going to continue to months o≥ so, but hours as China
reforms by today to the hated list of reforms is not agreed, this the Greeks. ing and future challenges,” Dijs- see another big fall you neve≥ know and some other
“troika” of creditors for review, agreement is dead.” “The Greeks left behind the selbloem said. and that’s going to countries were
and to see if they go far enough. Markets reacted positive- memorandum and are becom- - AFP provide support for TONY NUNAN, A RISK MANAGER closed for the
the market,” said Lunar New Year
Tony Nunan, a risk manager holiday. The market got sup-
at Mitsubishi Corp in Tokyo. port earlier in the week on re-
Japan stocks hit 15-yea≥ high as data suppo≥ts dolla≥ But near-term demand for newed geopolitical concerns
Opec oil is likely to remain after Islamic State laid claim
under pressure as US shale to a North African outpost in
Japanese stocks rose to a fresh 15-year high ing. The minutes had dented expectations Korea. The Australian Securities Exchange, production remains strong, Libya, threatening to use it to
on Friday with the dollar boosted by up- for an early interest rate hike by the Fed, one of the few major bourses in the region BP said this week. attack Europe.
beat US data, but continuing uncertainty driving US debt yields and the dollar lower. to open, saw its benchmark shed 0.4 per “Everybody is looking at the Meanwhile, offshore ma-
over the Greek debt negotiations weighed Japan’s Nikkei climbed to a fresh 15-year cent as corporate earnings disappointed. In slowdown, which will come in jors from BP to Chevron have
on the euro. high and was last up 0.3 per cent. addition to the US data, the greenback was six months or so, but you never slashed billions of dollars in in-
Spreadbetters expected a cautious “Now the market is relieved again on also supported as the ebb and flow of confi- know,” Mr Nunan added. vestment this year in response
start for European shares on lingering hopes for an earlier US rate hike,” said dence in the difficult talks between Greece “It may not slow down. I to the plunge in prices since
uncertainty, forecasting Britain’s FTSE to Nobuhiko Kuramochi, a strategist at Mi- and its lenders capped the euro. think this is the big fear.” mid-2014.
open flat, Germany’s DAX as much as 0.2 zuho Securities, noting that a stronger US The common currency was encouraged London Brent crude for “Everybody understands
per cent lower and France’s CAC down 0.3 economy is beneficial for Japan. A weaker earlier on Thursday after Greece was seen April delivery was trading 18 that current prices of $60 for
per cent. yen also helped Tokyo shares. to have caved in after weeks of haggling cents higher at $60.39 a barrel Brent are the bottom-end of
US weekly jobless numbers released MSCI’s broadest index of Asia-Pacific and asked for a six-month extension for its after settling down 32 cents on sustainability,” Mr Nunan said.
overnight proved better than expected, shares outside Japan was down 0.3 per cent, loans. But the euro’s rise fizzled after Ger- Thursday. “But $50 for WTI is probably
diffusing some of the pressure on the dol- with many of the regions’ markets closed for many snubbed the proposal, saying it was The contract is headed for too low for long-term sustain-
lar that followed dovish-sounding minutes the Lunar New Year holiday, including Chi- “not a substantial solution.” its first weekly decline in four ability.”
from the last Federal Reserve policy meet- na, Malaysia, Singapore, Taiwan and South -REUTERS weeks, of around 1.8 per cent. It -REUTERS
MARKET DATA
Agro Commodities Market Commodities
Early Morning wholesale commodity prices 20.02.2015
T≥easu≥e-t≥ove
COMMODITY Unit Kg Nairobi Kisumu Nakuru Eldoret Tharaka
CEREAL
Dry Maize Bag 90 2300 3400 2100 2000 2400
Green Maize
Finger Millet
Ext Bag
Bag
115
90
3500
7200
2500
7200
1800
6500
1800
7200
1700
8000 Caesarea
Sorghum Bag 90 3700 3600 3150 7650 3600
Wheat Bag 90 3400
LEGUMES Some of the gold
Beans Canadian Bag 90 6200 7400 5400 coins found on the
Beans Rosecoco Bag 90 6400 7000 5400 9000 5200
seabed off Israel’s
Beans Mwitemania Bag 90 6200 4900 9000 6000
Mwezi Moja Bag 90 Mediterranean
Dolichos (Njahi) Bag 90 6800 6000 11250 8000 coast, in the town
Green Gram Bag 90 11500 11800 12600 11700 8500
Cowpeas Bag 90 7200 8000 7200 7650 5000
of Caesarea,
Fresh Peas Bag 51 2600 2500 2500 2040 on February 18.
Groundnuts Bag 110 12500 10400 12000 12600 Scuba divers have
ROOTS & TUBERS
Red Irish Potatoes Bag 110 3000 3000 2800 2700 discovered the
White Irish Potatoes Bag 110 3100 3000 3000 2600 2700 largest trove of gold
Cassava Fresh Bag 99 1900 1800 2000
coins ever found
Sweet Potatoes Bag 98 3400 2000 3000 2200 2500
VEGETABLES off Israel’s coast —
Cabbages Ext Bag 126 2100 2000 2000 2000 800 about 2,000 pieces
Cooking Bananas Med Bunch 22 500 300 350 1000 300
Ripe Bananas Med Bunch 14 670 350 750 700 400
dating back more
Carrots Ext Bag 138 3000 3500 2500 2000 3000 than 1,000 years. AFP
Tomatoes Lg Box 64 5500 4500 2500 4000 4500
Onions Dry net 13 800 910 650 1100 600
Spring Onions Bag 142 1800 1400 900 1120 2000
Chillies Bag 38 3000 1300 3500
Cucumber Bag 50 2500
Capsicums Bag 50 3200 2500 3500 2500
Brinjals Bag 44 2200 1300 3000
Cauliflower crate 39 2600
Lettuce Bag 51 2400
FRUITS
Passion Fruits
Oranges
Bag
Bag
57
93
4800
3200
3000
3000
5000 3135
4000
Global Commodity Prices Unit Trusts
Lemons
Mangoes Local
Bag
Bag
95
126
2300
2200
1600
2400
2700
2500 2400 400
Effective date: 20th Feb 2015 Effective date: 19th February 2015
Mangoes Ngowe Sm Basket 25 900 1600 600 1200 MONEY MARKET FUND CURRENCY DAILY YIELD EFFECTIVE ANNUAL RATE
Limes net 13 700
AGRO COMMODITIES
Pineapples Dozen 13 720 600 480 1105 400
OLD MUTUAL SH 7.12% 7.36%
SOFTS
Pawpaw Lg Box 54 2200 1200 2500 3240 BRITISH AMERICAN SH 10.98% 11.61%
Avocado Bag 90 2500 1700 2500 1800 COMMODITY CURRENCY LAST NET CHNG
Kales Bag 50 2000 2800 2600 2000 300 AMANA SH 10.83% 11.38%
OTHERS SUGAR NO5 USD 382.80 -0.60 MADISON SH 10.46% 10.97%
Eggs Tray 300 280 300 390 330
COFFEE USD 184.05 -4.40 CBA SH 8.78% 9.11%
SOURCE: STATE DEPARTMENT OF AGRICULTURE. EMAIL [email protected]
COCOA USD 2987.00 -38.00 UAP SH 10.90% 11.51%
RUBBER JPY 221.00 0.00 ICEA SH 8.85% 9.25%
MSCI Emerging Markets Sector Indices GENCAP HELA SH 11.58% 12.09%
FROZEN OJ CON1 USC 133.00 -1.35
NAME LAST NET.CHNG PCT.CHNG OPEN HIGH LOW CLOSE
PAN AFRICA PESA+ SH 11.30% 11.96%
BRIC IC 656.11 -5.30 -0.80% 656.11 656.11 656.11 661.41 COTTON NO2 USC 64.37 -0.07
BELGIUM IC DAILY 905.64 10.55 1.18% 905.64 905.64 905.64 895.09 FIXED INCOME FUND CURRENCY BUY SELL
GRAINS
BELGIUM 850.41 5.96 0.71% 850.41 850.41 850.41 844.45
BELGIUM MID CAP 909.48 11.92 1.33% 909.48 909.48 909.48 897.57 CORN USC 388.75 -1.00 GENCAP HAZINA SH 113.40 109.43
BAHRAIN IC 91.41 -0.36 -0.39% 91.41 91.41 91.41 91.77 NABO AFRICA USD 101.42 101.42
MAIZE EUR EUR 155.75 1.25
BAHRAIN DOMESTIC 80.97 -0.32 -0.39% 80.97 80.97 80.97 81.29 BALANCED FUND
BRAZIL IC DAILY 430.04 -4.10 -0.94% 430.04 430.04 430.04 434.14 WHEAT USC 528.50 0.75
OLD MUTUAL / TOBOA SH 166.54 177.34
BRAZIL LARGE CAP 381.16 -4.46 -1.16% 381.16 381.16 381.16 385.61 ROUGH RICE USD 10.85 0.05
BRAZIL MID CAP 671.81 -3.47 -0.51% 671.81 671.81 671.81 675.28 BRITISH AMERICAN SH 197.92 203.70
OILSEEDS
CANADA IC 917.00 -8.40 -0.91% 917.00 917.00 917.00 925.40 BA MANAGED RETIREMENT SH 135.58 136.73
CANADA CAP 840.95 -7.05 -0.83% 840.95 840.95 840.95 848.00 SOY BEANS USC 1006.50 -0.75 MADISON SH 68.65 72.43
CANADA MID CAP 1,184.42 -14.16 -1.18% 1,184.42 1,184.42 1,184.42 1,198.58
SOY BEAN OIL USC 31.79 -0.04 AMANA SH 121.11 121.11
SWITZERLAND IC 1,280.74 16.23 1.28% 1,280.74 1,280.74 1,280.74 1,264.50
SWITZERLAND LRCP 1,306.09 16.86 1.31% 1,306.09 1,306.09 1,306.09 1,289.23 CANOLA CAD 473.60 3.70 ICEA SH 151.06 159.01
SWIZ 1,042.91 10.61 1.03% 1,042.91 1,042.91 1,042.91 1,032.31 GENCAP ENEZA SH 132.25 137.63
PALM OIL MYR 2264.00 -8.00
CHILE IC 864.03 4.32 0.50% 864.03 864.03 864.03 859.71
UAP SH 11.11 11.67
CHILE LARGE CAP 921.75 4.68 0.51% 921.75 921.75 921.75 917.07
CHINA IC 948.08 0.15 0.02% 948.08 948.08 948.08 947.94 PANAFRICA CHAMA+ SH 10.90 11.24
CHINA LARGE CAP 969.45 0.15 0.02% 969.45 969.45 969.45 969.30 METALS & MINING NABO AFRICA USD 126 126
CHINA MID CAP IC 920.54 0.14 0.02% 920.54 920.54 920.54 920.40
EQUITY FUND
COLOMBIA IC 896.97 -15.59 -1.71% 896.97 896.97 896.97 912.56 SYMBOL CURRENCY LAST NET CHG
COLOMBIA CAP 572.50 -12.49 -2.14% 572.50 572.50 572.50 584.99 OLD MUTUAL SH 421.48 451.60
100 OZ GOLD USD 1201.40 -5.70
CZECH REPUBL 442.78 0.12 0.03% 442.78 442.78 442.78 442.66 OLD MUTUAL EAST AFRICA FUND SH 163.04 172.55
CZECH REPUB LRCP 479.42 0.13 0.03% 479.42 479.42 479.42 479.29 SILVER JPY 63.00 -2.00
BRITISH AMERICAN SH 218.94 225.89
GERMANY IC 1,146.13 3.22 0.28% 1,146.13 1,146.13 1,146.13 1,142.91 HG COPPER USC 2.64 0.00
AMANA SH 122.84 122.84
GERMANY LARGE CP 1,205.01 3.05 0.25% 1,205.01 1,205.01 1,205.01 1,201.95
PLATINUM JPY 4416.00 -45.00 MADISON SH 53.40 56.68
GERMANY MID CAP 767.48 4.56 0.60% 767.48 767.48 767.48 762.92
DENMARK IC 2,644.52 4.81 0.18% 2,644.52 2,644.52 2,644.52 2,639.70 ALUMINIUM CNY 13005.00 5.00 CBA SH 172.39 172.39
DENMARK LARGE CP 987.42 10.65 1.09% 987.42 987.42 987.42 976.77
ICEA SH 161.00 169.48
DENMARK MID CAP 1,903.48 -3.56 -0.19% 1,903.48 1,903.48 1,903.48 1,907.03
EASEA IC 1,061.80 2.42 0.23% 1,061.80 1,061.80 1,061.80 1,059.38 GENCAP HISA SH 140.23 135.32
EASEA LARGE CAP 1,068.76 2.20 0.21% 1,068.76 1,068.76 1,068.76 1,066.55 UAP SH 10.95 11.50
EASEA MID CAP IC 1,032.15 3.40 0.33% 1,032.15 1,032.15 1,032.15 1,028.75 NABO AFRICA USD 101.79 101.79
EU IC 1,053.95 0.69 0.07% 1,053.95 1,053.95 1,053.95 1,053.26 OIL& GAS
EU LARGE CAP IC 1,053.75 -0.36 -0.03% 1,053.75 1,053.75 1,053.75 1,054.10
BOND FUND
SYMBOL CURRENCY LAST NET CHG
EU MID CAP IC 1,074.08 5.89 0.55% 1,074.08 1,074.08 1,074.08 1,068.20 OLD MUTUAL BOND FUND SH 100.69 103.08
EM EMEA IC 802.68 -5.10 -0.63% 802.68 802.68 802.68 807.78 LIGHT CRUDE USD 51.03 -0.13
BRITISH AMERICAN SH 138.97 141.81
EM EMEA LARGE CP 798.21 -7.03 -0.87% 798.21 798.21 798.21 805.23 NO 2 HT OIL USD 2.00 0.01 ICEA SH 98.21 99.20
EM EM ISLAMIC 999.40 -2.15 -0.21% 999.40 999.40 999.40 1,001.55
EMERGING MARKET 975.38 -2.76 -0.28% 975.38 975.38 975.38 978.14 BRENT CRUDE USD 60.20 -0.01 UAP SH 10.66 10.66
EM MDCP 1,217.90 1.83 0.15% 1,217.90 1,217.90 1,217.90 1,216.07 GAS OIL USD 575.25 7.00 PAN AFRICA PATA+ SH 10.56 10.89
SPAIN IC 1,415.54 29.79 2.15% 1,415.54 1,415.54 1,415.54 1,385.75
NATURAL GAS USD 2.92 0.09 SHARIAH COMPLIANT
SPAIN LARGE CAP 1,430.01 35.78 2.57% 1,430.01 1,430.01 1,430.01 1,394.24
SPAIN MID CAP IC 1,136.29 15.25 1.36% 1,136.29 1,136.29 1,136.29 1,121.04 GENCAP IMAN SH 119.03 113.08
MARKETDATA
MARKET DATA
Active Counters:
Eu≥ozone’s ACTIVE COUNTERS
xxxxxxxxxxxxxx
manufactu≥ing Britam
Total
Kenya
Kenya 19.20
27.00
Mumias
Kenya Power
Kenya
Kenya 17.05
3.05
Kenol
Longhorn
Kenya
Kenya 14.20
10.20
Kengen
Barclays
Kenya
10.65
16.10
Umeme
Housing Finance
Kenya 20.00
33.00
g≥owth ≥emains 0.52%

-0.92% -3.13%
1.67% 0.00%
-0.49% 0.95%
0.00% 0.00%
-1.49%
‘meag≥e’ in Jan
Eurozone manufacturing growth
remained “meagre” in January as
factories slashed prices at the fast-
est rate since mid-2013, a survey
has said.
The latest Markit/CIPS eurozone
FebFeb
‘14 13 Feb‘15 Feb ‘14Feb 13 Feb‘15 Feb ‘14Feb 13 Feb‘15 FebFeb
‘14 13 Feb‘15 Feb ‘14 Feb‘15
Purchasing Managers’ Index (PMI)
rose to 51 in January from 50.6 in De- Earnings per share
Earnings per share
1.40
2.08 Earnings per share -1.09 Earnings per share 1.80 Earnings per share 1.40
Earnings per share 3.31 Earnings per share 0.38 1.29 Earnings per share 2.26
4.31
cember. Although this was only just Price to earnings ratio (p/e) 13.71 Price to earnings ratio (p/e) -2.80 Earnings per share Earnings per share
Price to earnings ratio (p/e) 12.98 Price to earnings ratio (p/e) 5.15 Price to earnings ratio (p/e) 7.89 Price to earnings ratio (p/e) 11.50
Dividend Yield 0.52% Price to earnings ratio (p/e) 26.84 Price to earnings ratio (p/e) 8.26 Price
Pricetoto
earnings ratio
earnings (p/e)
ratio (p/e) 8.85
7.66
above the 50 mark, which indicates Dividend Yield Dividend Yield 0.00% Dividend Yield 5.63% Dividend Yield 4.35%
2.22% Dividend Yield 2.93% Dividend Yield Dividend Yield
0.98% Dividend Yield 3.76% Dividend Yield 3.65%
5.30%
growth, it was the strongest figure
for six months.
Eurozone manufacturers are fac-
ing a duel problem of weak domestic EAUchumi
Portland ARM
EABL C&G
Bamburi EA Cables
Kenya Airways Crown Berger
KPLC
Kenya 66.00
demand and export performance, Kenya 18.80 Kenya
Kenya 89.50
244.00 Kenya 155.00
30.25 Kenya 11.75 Kenya
Kenya 137.00
14.45
0.00% 15.50
Markit said. On Friday, official data 2.17% 0.56%
7.49% -0.64%
-3.20% Kenya 0.00% -8.67%
0.35%
-1.27%
showed deflation in the eurozone
deepened in January with prices
falling 0.6% in the month com-
pared with a year earlier.
Markit’s survey found the falling
price of oil drove average manufac-
turing costs down at the fastest pace
for five-and-a-half years.
Lower cost pressures were
partly reflected in average selling
prices. Output charges fell for the Feb ‘14 Feb‘15 Feb ‘14 Feb‘15 Feb ‘14 Feb‘15 Feb ‘14 Feb‘15 Feb ‘14 Feb‘15
fifth month in a row and registered
Earnings
Earnings perper share
share -4.301.35 Earnings 2.74 Earningsperpershare
share 9.557.48 Earnings per share -6.35
1.37 Earnings per share 2.23
9.01
the biggest fall for more than a year Price to earnings ratio (p/e) 13.93
perper
Earnings share
share 8.82 Earnings Earnings per share Earnings per share
Price to earnings ratio (p/e) -15.35 Pricetotoearnings
earningsratio
ratio(p/e)
(p/e) 16.234.04 Price to earnings ratio (p/e) -1.85 6.48
and a half. Price to earnings
Price ratio
to earnings (p/e)
ratio (p/e) 32.66
27.66 Price Price to earnings ratio (p/e) 11.31 PricePrice
to earnings ratioratio
to earnings (p/e)(p/e) 15.21
Dividend Yield 1.60%
Dividend Yield 0.00% Dividend Yield
Dividend Yield DividendYield
2.25% Dividend
0.67% Yield 2.64% Dividend
7.10%
Yield
Dividend Yield 0.00%
6.45% Dividend YieldYield
Dividend 0.00%
1.28%
Mixed picture
The survey was carried out before
the European Central Bank (ECB)
announced its £820bn bond buying
programme, which Markit’s chief
Tracking the markets: Benchmark Index (Latest Data)
economist Chris Williamson, said Africa
should boost business and consum- JSE All Share Index USE All Share DSE All Share NGSE All share RSE All Share
er confidence in the eurozone and South Africa Uganda Tanzania Nigeria Rwanda
weaken the euro further, helping to 2,091.00 137.54
52,966.16 2,774.19 29,383.93
boost exports. 0.25% 1.01% 1.10% 0.35% 0.02%
The single currency has already
fallen more than six per cent versus
the US dollar since the start of the
year. Mr Williamson said: “Euro-
zone manufacturing showed signs
of pulling out of the doldrums at the
start of the year, but the rate of ex-
pansion remained disappointingly
meagre, vindicating the ECB’s deci-
sion to take drastic action to revive July ‘14 Feb‘15 July ‘14 Feb‘15 July ‘14 Feb‘15 July ‘14 Feb‘15 July ‘14 Feb‘15
the economy.
“The currency’s fall should ben-
efit exporting manufacturers in par-
World
ticular over coming months. Lower DJ Industrial Xetra Dax HangSeng Nikkei Sensex
oil prices will also help reduce man- New York Frankfurt Hongkong Tokyo Mumbai
ufacturers’ costs, with reduced fuel 17,985.77 10,975.72
24,832.08
18,332.30 29,199.54
0.19%
costs also freeing up more consumer -0.24% -0.24% 0.37% -0.89%
income to spend on goods.”
Markit said improvements in
business conditions were seen in
Germany, Spain, the Netherlands
and Ireland during January.
But this was offset by manufac-
turing downturns in France, Italy,
Austria and Greece.
The rates of contraction in
France and Italy stabilised, but
July ‘14 Feb‘15 July ‘14 Feb‘15 July ‘14 Feb‘15 July ‘14 Feb‘15 July ‘14 Feb‘15
Austria and Greece registered big-
ger downturns. - BBC
MARKET DATA
Nairobi Stocks African Indices

NAME LOCATION LAST NET.CHNG PCT.CHNG OPEN HIGH LOW CLOSE
NSE 20 Share Index 5,465.90 NSE 20 - SHR IDX KENYA 5,465.90 -7.91 -0.14% 5,473.81 5,473.81 5,473.81 5,473.81
Nairobi -0.14%
LUSE ALL SHARE INDEX ZAMBIA 6,192.23 7.91 0.13% 6,184.32 6,192.23 6,184.32 6,184.32
JSE ALL SHARE INDEX SOUTH AFRICA 52,966.16 130.61 0.25% 52,825.04 53,077.73 52,734.31 52,835.55
ALSIUG UGANDA 2,091.00 21.00 1.01% 2,070.00 2,070.00 2,070.00 2,070.00
ZSE INDUSTRIAL ZIMBABWE 168.13 -0.42 -0.25% 168.55 168.55 168.55 168.55
CFG INDEX MOROCCO 22,077.26 -15.98 -0.07% 22,109.65 22,125.07 22,004.13 22,093.24
MALAWI ALL SHR MALAWI 14,964.74 0.00 0.00% 14,964.74 14,964.74 14,964.74 14,964.74
DSE ALL SHR IDX TANZANIA 2,774.19 30.14 1.10% 2,744.05 2,744.05 2,744.05 2,744.05
NSE ALL SHARE/D NIGERIA 29,383.93 101.89 0.35% 29,282.04 29,460.45 29,036.52 29,282.04
EGX 30 IDX/D EGYPT 9,481.20 -56.03 -0.59% 9,538.28 9,575.94 9,481.20 9,537.23
TUN MAIN INDEX TUNISIA 5,313.92 3.79 0.07% 5,297.34 5,319.41 5,291.88 5,310.13
RSE ALLSHARE IND RWANDA 137.54 0.03 0.02% 137.54 137.54 137.54 137.51
Jan ‘14 Jan ‘15
Weekly Share Report

All Share Index (NASI) 176.00 PRICE PRICE WEEKLY SHARES SHARES EPS DPS TOTAL
Nairobi 0.20% 52 WK 52 WK YTD LAST PREV PRICE TRADED ISSUED MKT CAP. LATEST P/E PBV LATEST DIVIDEND
HIGH LOW % FRI FRI CHANGE LAST WEEK MN KSHS MN 12MNTH TRAILING TRAILING 12MNTH YIELD
AGRICULTURAL
EAAGADS 100.00 25.00 -5.95% 38.25 40.00 -4.38% 87,000 32,157,000 1,230.0 -1.30 -29.42 3.06 0.00 0.00%
KAKUZI 346.00 98.00 89.44% 345.00 244.00 41.39% 26,000 19,599,999 6,762.0 8.42 40.97 2.33 3.75 1.09%
KAPCHORUA TEA 180.00 120.00 2.92% 141.00 141.00 0.00% - 3,912,000 551.6 32.21 4.38 0.40 5.00 3.55%
LIMURU TEA 1185.00 570.00 44.49% 1114.00 1017.00 9.54% 50,000 1,200,000 1,336.8 23.80 46.81 5.43 7.50 0.67%
REA VIPINGO 27.50 27.50 0.00% 27.50 27.50 0.00% - 60,000,000 1,650.0 5.85 4.70 0.74 0.00 0.00%
SASINI 19.95 11.50 19.46% 15.00 13.45 11.52% 215,800 228,055,500 3,420.8 0.54 27.78 0.54 0.25 1.67%
WILLIAMSON TEA 320.00 240.00 20.97% 300.00 300.00 0.00% 300 8,756,320 2,626.9 81.36 3.69 0.41 7.00 2.33%
AUTOMOBILES & ACCESSORIES
CAR & GEN 62.00 30.00 -3.70% 49.50 52.00 -4.81% 2,500 40,103,308 1,985.1 6.57 7.53 0.95 0.60 1.21%
MARSHALLS 13.60 8.00 22.45% 12.00 11.90 0.84% 11,200 14,393,106 172.7 -11.90 -1.01 0.44 0.00 0.00%
SAMEER 9.40 5.50 10.00% 6.50 6.65 -2.26% 59,900 278,342,393 1,809.2 1.44 4.51 0.78 0.30 4.62%
BANKING
BARCLAYS 19.15 15.30 1.20% 16.90 16.70 1.20% 8,545,500 5,431,536,000 91,793.0 1.40 12.07 2.84 0.70 4.14%
CFC STANBIC 155.00 85.00 8.06% 135.00 131.00 3.05% 364,100 395,321,638 53,368.4 12.97 10.41 2.31 2.15 1.59%
DTBK 280.00 202.00 3.40% 242.00 243.00 -0.41% 338,100 220,100,096 53,264.2 21.61 11.20 2.54 2.10 0.87%
Jan ‘14 Jan ‘15 EQUITY 63.00 29.50 8.00% 54.50 53.00 2.83% 9,108,300 3,702,777,020 201,801.3 3.59 15.18 3.92 1.50 2.75%
HF 55.00 29.50 -12.57% 40.00 40.75 -1.84% 620,600 235,750,000 9,430.0 4.30 9.30 1.54 1.75 4.38%
I&M HOLDINGS 147.00 120.00 4.07% 125.00 122.00 2.46% 190,700 392,362,039 49,045.3 11.75 10.64 2.24 1.90 1.52%
FTSE Pan African Index 1,249.35 KCB 64.00 42.25 3.51% 59.50 59.00 0.85% 11,234,900 2,984,227,692 177,561.5 4.18 14.23 2.78 2.00 3.36%
Nairobi 0.00% NBK 39.25 22.25 6.06% 26.00 25.25 2.97% 136,200 280,000,000 7,280.0 2.32 11.21 0.59 0.33 1.27%
NIC BANK 85.00 54.50 13.04% 65.00 63.00 3.17% 552,400 639,945,603 41,596.5 6.12 10.62 2.00 1.00 1.54%
STAN. CHART. 350.00 285.00 3.88% 349.00 345.00 1.16% 61,500 309,159,514 107,896.7 29.42 11.86 2.98 14.50 4.15%
CO-OP BANK 25.00 17.00 7.50% 21.75 20.00 8.75% 5,553,600 4,889,316,295 106,342.6 1.86 11.69 2.48 0.50 2.30%
COMMERCIAL
EXPRESS (K) 8.50 3.80 5.65% 6.45 6.30 2.38% 130,800 35,403,790 228.4 0.01 645.00 1.15 0.00 0.00%
HUTCHINGS BIEMER 20.25 20.25 0.00% 20.25 20.25 0.00% - 360,000 7.3 -18.34 -1.10 - 0.00 0.00%
KQ 13.50 7.60 14.94% 10.00 10.55 -5.21% 834,900 1,496,469,035 14,964.7 -2.25 -4.44 4.78 0.00 0.00%
LONGHORN 30.75 8.00 1.62% 9.40 9.40 0.00% 368,300 243,750,000 2,291.3 1.62 5.80 1.27 2.00 21.28%
NATION MEDIA 345.00 230.00 0.76% 264.00 266.00 -0.75% 47,500 188,542,286 49,775.2 13.40 19.70 6.08 10.00 3.79%
SCANGROUP 78.00 40.00 -0.55% 44.50 45.00 -1.11% 108,400 378,865,102 16,859.5 2.70 16.48 2.06 0.40 0.90%
STANDARD GRP 42.00 25.25 26.62% 44.25 41.00 7.93% 10,000 81,731,808 3,616.6 2.41 18.36 1.99 0.50 1.13%
TPS EA 50.00 32.00 -7.43% 34.50 37.50 -8.00% 89,200 182,174,108 6,285.0 3.45 10.00 0.57 1.35 3.91%
UCHUMI 19.50 8.00 9.45% 10.50 11.55 -9.09% 352,300 364,959,616 3,832.1 1.45 7.24 0.95 0.30 2.86%
CONSTRUCTION & ALLIED
ARM CEMENT LTD 96.50 76.00 3.49% 89.50 86.00 4.07% 1,177,500 495,275,000 44,327.1 2.74 32.66 5.46 0.60 0.67%
Jan ‘14 Jan ‘15 BAMBURI 214.00 135.00 12.23% 155.00 152.00 1.97% 1,532,200 362,959,275 56,258.7 9.55 16.23 1.94 11.00 7.10%
CROWN BERGER 165.00 76.00 35.14% 137.00 150.00 -8.67% 3,900 23,727,000 3,250.6 9.01 15.21 2.39 1.75 1.28%
EA CABLES 17.00 13.50 -3.09% 15.50 15.70 -1.27% 151,700 253,125,000 3,923.4 1.37 11.31 1.63 1.00 6.45%
EAPC 110.00 51.00 13.79% 66.00 70.00 -5.71% 4,000 90,000,000 5,940.0 -4.30 -15.35 1.23 0.00 0.00%
Active
Active Counters
Counters ENERGY & PETROLEUM
KENGEN 14.20 8.70 2.43% 10.65 10.25 3.90% 2,610,400 2,198,361,456 23,412.5 1.29 8.26 0.34 0.40 3.76%
KENOLKOBIL 10.50 7.90 17.82% 10.20 10.00 2.00% 2,145,500 1,471,761,200 15,012.0 0.38 26.84 2.25 0.10 0.98%
Last fri Prev fri Net Total Shares
KENYA POWER 18.15 12.85 21.80% 17.05 16.05 6.23% 6,410,000 1,951,467,045 33,272.5 3.31 5.15 0.76 0.50 2.93%
Counter Price Price Change Traded TOTAL 32.00 20.00 13.54% 27.00 27.50 -1.82% 244,200 175,028,706 4,725.8 2.08 12.98 0.93 0.60 2.22%
Safaricom 15.35 14.85 3.37% 20,520,500 UMEME 23.00 13.00 -4.76% 20.00 20.00 0.00% 250,200 1,623,878,005 32,477.6 2.26 8.85 3.55 0.73 3.65%
KCB 59.50 59.00 0.85% 11,234,900 INSURANCE
BRITISH AMERICAN 40.00 16.40 -0.84% 29.50 29.00 1.72% 2,603,600 1,938,415,838 57,183.3 1.40 21.07 3.30 0.25 0.85%
Equity 54.50 53.00 2.83% 9,108,300
CIC INSURANCE 12.40 5.80 18.23% 11.10 11.05 0.45% 2,937,400 2,615,538,528 29,032.5 0.67 16.57 3.59 0.10 0.90%
Mumias 2.75 2.85 -3.51% 8,766,400 JUBILEE 550.00 300.00 20.00% 547.00 539.00 1.48% 111,500 59,895,000 32,762.6 38.00 14.39 3.06 7.00 1.28%
Barclays 16.90 16.70 1.20% 8,545,500 KENYA RE 21.00 16.00 8.50% 18.50 18.40 0.54% 2,175,500 699,949,068 12,949.1 4.29 4.31 0.72 0.60 3.24%
LIBERTY KENYA 26.00 14.75 4.30% 24.50 24.50 0.00% 1,131,700 535,707,499 13,124.8 2.15 11.40 2.48 1.00 4.08%
Gainers PAN AFRICA

INVESTMENT
145.00 87.00 -8.33% 105.00 118.00 -11.02% 28,700 96,000,000 10,080.0 13.05 8.05 3.02 4.50 4.29%
CENTUM INVEST. 84.50 34.25 1.64% 62.00 62.50 -0.80% 5,940,300 665,441,775 41,257.4 4.54 13.66 2.03 0.00 0.00%
Last fri Prev fri Net %
OLYMPIA 10.85 2.50 18.27% 6.30 6.45 -2.33% 47,600 40,000,000 252.0 0.38 16.58 0.32 0.00 0.00%
Counter Price Price Change Chng
TRANSCENTURY 31.00 18.00 -5.43% 18.35 18.65 -1.61% 127,900 280,284,476 5,143.2 1.06 17.31 0.97 0.40 2.18%
Kakuzi 345.00 244.00 101.00 41.39% INVESTMENT SERVICES
Sasini 15.00 13.45 1.55 11.52% NAIROBI SECURITIES EXCHG 28.00 15.00 19.95 20.50 -2.68% 372,900 194,625,000 3,882.8 1.35 14.78 5.32 0.25 1.25%
MANUFACTURING & ALLIED
Limuru Tea 1114.00 1017.00 97.00 9.54%
A. BAUMANN 11.10 11.10 0.00% 11.10 11.10 0.00% - 3,840,066 42.6 -2.02 -5.50 - 0.00 0.00%
Co-Op Bank 21.75 20.00 1.75 8.75% BOC GASES 190.00 123.00 20.80% 151.00 149.00 1.34% 900 19,525,446 2,948.3 10.38 14.55 2.03 5.20 3.44%
Standard Grp 44.25 41.00 3.25 7.93% BAT KENYA 1050.00 521.00 -1.10% 897.00 900.00 -0.33% 18,600 100,000,000 89,700.0 37.24 24.09 11.85 37.00 4.12%
CARBACID 46.75 19.60 13.79% 25.00 24.75 1.01% 2,581,600 254,851,988 6,371.3 1.93 12.95 3.85 0.30 1.20%
Losers EABL
EVEREADY EA
355.00
5.35
212.00
2.65
13.64%
27.03%
345.00
4.65
332.00
4.55
3.92%
2.20%
2,619,900
177,200
790,774,356
210,000,000
272,817.2
976.5
8.21
-0.85
42.02
-5.47
9.99
3.02
5.50
0.00
1.59%
0.00%
K. ORCHARDS 192.00 4.40 4.55% 115.00 110.00 4.55% 200 12,868,124 1,479.8 0.15 766.67 605.26 0.00 0.00%
MUMIAS 4.20 1.35 46.15% 2.75 2.85 -3.51% 8,766,400 1,530,000,000 4,207.5 -1.77 -1.55 0.40 0.00 0.00%
Last fri Prev fri Net %
Counter Price price Change Chng UNGA 56.50 18.00 12.58% 45.00 45.25 -0.55% 15,600 75,708,873 3,406.9 3.65 12.33 0.73 0.75 1.67%
Pan Africa 105.00 118.00 -13.00 -11.02% TELECOMMUNICATION & TECHNOLOGY
SAFARICOM 15.50 10.60 7.83% 15.35 14.85 3.37% 20,520,500 40,065,428,000 615,004.3 0.57 26.93 7.68 0.47 3.06%
Uchumi 10.50 11.55 -1.05 -9.09% GROWTH AND ENTERPRISE MARKET SEGMENT
Crown Berger 137.00 150.00 -13.00 -8.67% ATLAS DEVELOPMENT & SUPPORT LTD 13.75 11.30 11.40 11.95 -4.60% 96,700 433,063,193 4,936.9 -0.04 -285.00 0.00 0.00%
FLAME TREE GROUP HOLDINGS 14.00 8.00 - 8.85 8.70 1.72% 344,300 161,866,804 1,432.5 0.92 9.62 0.92 10.40%
TPS EA 34.50 37.50 -3.00 -8.00%
HOME AFRICA 6.50 3.20 -9.76% 3.70 3.80 -2.63% 1,347,500 405,255,320 1,499.4 0.05 74.00 - 0.00 0.00%
EAPC 66.00 70.00 -4.00 -5.71% KURWITU VENTURES LTD 1500.00 1500.00 - 1500.00 1500.00 0.00% - 102,272 153.4 -62.40 -24.04 0.00 0.00%
MARKET UPDATES TO RECEIVE NATIONMOBILE ALERTS ON YOUR CELLPHONE, SMS THE STOCK YOU WANT, E.G. STOCKS KENGEN, TO 20667.
6667. EACH
EACHALERT
ALERTCOSTS
COSTSSH5
SH5ABOVE
ABOVENORMAL
NORMALRATES.
RATES.
MARKET DATA MARKET DATA

Equities & Bonds
Share Price Performance Scorecard Kenya Treasury and Infrastructure Bonds
SCORECARD AS AT 20TH FEB 2015 BONDS WEEKLY STATISTICS FEBRUARY 20, 2015
NAME PREVIOUS CLOSE % 1D % 5D % 1M % 3M % 6M % 1Y ISSUE MATURITY ISSUED VALUE AVERAGE TOTAL NUMBER OF
A BAUMANN 11.10 11.10 0.00 0.00 0.00 0.00 0.00 0.00
ATLAS DEVPNT & SPPRT SERV 11.50 11.40 -0.87 -4.60 -5.79 - - - DATE DATE IN MILLIONS COUPON TRADED YIELD VALUE TRADES
ATHI RIVER MINING 89.00 89.50 0.56 4.07 11.18 2.87 7.83 1.13 ISSUE NO. (%) (%) (KSHS)
BAMBURI 156.00 155.00 -0.64 1.97 1.97 3.33 -9.88 -25.48
BARCLAYS KEN 16.90 16.90 0.00 1.20 3.68 0.00 -5.59 4.97 TWO YEAR BONDS
BAT KENYA 898.00 897.00 -0.11 -0.33 -0.33 -4.88 11.99 64.29
FXD 1/2013/2YR 25-FEB-13 23-FEB-15 20,445.00 12.844
BOC KENYA 151.00 151.00 0.00 1.34 7.86 7.86 8.63 -8.48
BRITISH AMERICAN 29.50 29.50 0.00 1.72 1.72 13.46 25.53 54.45 FXD 2/2013/2YR 25-MAR-13 23-MAR-15 19,960.65 12.940
CAR & GENERAL 52.00 49.50 -4.81 -4.81 1.02 -10.00 12.50 58.40
CARBACID INV 24.75 25.00 1.01 1.01 6.38 19.05 -7.41 -35.90 FXD 3/2013/2YR 26-AUG-13 24-AUG-15 17,927.40 12.939
CENTUM INV 62.00 62.00 0.00 -0.80 -3.88 -1.59 31.22 55.97
CFC STANBIC BANK 134.00 135.00 0.75 3.05 8.87 10.66 8.87 32.35 FXD 4/2013/2YR 24-DEC-13 21-DEC-15 25,251.00 11.553
CIC INSURANCE 11.35 11.10 -2.20 0.45 12.12 13.27 24.02 0.00 FXD 1/2014/2YR 24-MAR-14 21-MAR-16 20,000.00 10.803
CO-OP BANK 21.50 21.75 1.16 8.75 13.28 11.54 14.17 20.83
CROWN BERGER 150.00 137.00 -8.67 -8.67 21.24 10.48 37.00 64.07 FXD 2/2014/2YR 26-MAY-14 23-MAY-16 20,130.15 10.793 11.1555 20,000,000 1
DIAMOND KEN 243.00 242.00 -0.41 -0.41 1.68 -2.02 -4.72 10.00
EA CABLES 15.70 15.50 -1.27 -1.27 -2.52 0.98 -3.13 -0.64 FXD 3/2014/2YR 22-DEC-14 19-DEC-16 8,905.12 10.890
EA PORT CEM 66.00 66.00 0.00 -5.71 14.78 8.20 -10.81 -7.69 FIVE YEAR BONDS
EAAGADS 39.50 38.25 -3.16 -4.38 -1.92 -6.71 24.39 37.84
EA AFR BREW 350.00 345.00 -1.43 3.92 11.65 17.35 17.75 51.98 FXD 1/2010/5YR 24-MAY-10 18-MAY-15 11,924.85 6.950
EQUITY BANK 54.00 54.50 0.93 2.83 6.86 12.37 18.48 68.99
EVEREADY EA 4.70 4.65 -1.06 2.20 16.25 20.78 50.00 45.31 FXD 2/2010/5YR 30-NOV-10 23-NOV-15 14,973.10 6.671
EXPRESS KEN 6.55 6.45 -1.53 2.38 6.61 -7.86 3.20 41.76 FXD 1/2011/5YR 31-JAN-11 25-JAN-16 22,083.10 7.636
FLAME TREE HLDNGS 8.65 8.85 2.31 1.72 6.63 2.31 - -
G WILLIAMSON 300.00 300.00 0.00 0.00 -2.91 7.14 11.11 -1.64 FXD 1/2012/5YR 28-MAY-12 22-MAY-17 31,079.55 11.855 12.2500 100,000 1
HUTCHINGS BIEMER 20.25 20.25 0.00 0.00 0.00 0.00 0.00 0.00
HOME AFRICA LIMITED 3.70 3.70 0.00 -2.63 -6.33 -12.94 0.00 0.00 FXD 1/2013/5YR 29-APR-13 23-APR-18 20,240.75 12.892
HOUSING FIN 40.00 40.00 0.00 -1.84 -17.53 -8.57 -9.60 19.40 FXD 2/2013/5YR 1-JUL-13 25-JUN-18 26,340.05 11.305
I&M HOLDING 128.00 125.00 -2.34 2.46 0.81 -3.10 -8.09 0.00
JUBILEE HLDS 540.00 547.00 1.30 1.48 21.29 21.83 36.75 73.10 FXD 3/2013/5YR 25-NOV-13 19-NOV-18 14,937.80 11.952
KAKUZI 341.00 345.00 1.17 41.39 72.50 72.50 102.94 187.50
KAPCHORUA 141.00 141.00 0.00 0.00 -6.00 -4.73 6.02 -14.02 FXD 1/2014/5YR 28-APR-14 22-APR-19 25,540.95 10.870 11.5519 1,300,000,000 5
KEN ORCHARDS 115.00 115.00 0.00 4.55 4.55 -8.00 900.00 3733.33
FXD 2/2014/5YR 23-JUN-14 17-JUN-19 16,418.25 10.934
KENGEN 10.55 10.65 0.95 3.90 11.52 -3.18 -4.48 -8.19
KENYA AIRWAYS 10.00 10.00 0.00 -5.21 6.38 29.03 4.17 -14.89 EIGHT YEAR BONDS
KENYA COM BK 59.00 59.50 0.85 0.85 1.71 6.25 5.31 33.71
KENOLKOBIL 10.25 10.20 -0.49 2.00 13.97 9.68 26.71 6.81 FXD1/2007/8YR 26-FEB-07 16-FEB-15 2,630.10 12.750
KENYA POWER 17.60 17.05 -3.13 6.23 14.43 4.28 16.78 18.40
NINE YEAR BONDS
KENYA RE 18.50 18.50 0.00 0.54 4.52 10.45 5.71 -5.61
KURWITU 1500.00 1500.00 0.00 0.00 0.00 0.00 - - FXD1/2006/9YR 24-APR-06 13-APR-15 3,045.25 13.500
LIBERTY HOLDINGS 24.25 24.50 1.03 0.00 4.26 7.69 38.42 50.31
LIMURU TEA 1114.00 1114.00 0.00 9.54 31.83 1.27 66.27 79.68 TEN YEAR BONDS
LONGHORN 9.40 9.40 0.00 0.00 4.44 -64.53 -39.94 -33.80
MARSHALL 12.00 12.00 0.00 0.84 5.73 20.00 25.65 0.42 FXD1/2006/10YR 27-MAR-06 14-MAR-16 3,451.05 14.000
MUMIAS SUGAR 2.85 2.75 -3.51 -3.51 -17.91 44.74 34.15 -8.33 FXD2/2006/10YR 29-MAY-06 16-MAY-16 5,028.10 14.000
NAIROBI SECURITIES 20.00 19.95 -0.25 -2.68 0.00 -5.00 - -
NATION MEDIA 265.00 264.00 -0.38 -0.75 -4.69 -10.81 -15.38 -14.56 FXD1/2007/10YR 29-OCT-07 16-OCT-17 9,308.80 10.750
NATL BANK KEN 26.25 26.00 -0.95 2.97 2.97 6.12 -3.70 -24.09
NIC BANK 65.00 65.00 0.00 3.17 0.00 -2.26 -5.80 4.00 FXD1/2008/10YR 29-OCT-07 16-OCT-17 2,992.75 10.750
OLYMPIA CAPITAL 6.15 6.30 2.44 -2.33 -15.44 1.61 26.00 31.25 FXD2/2008/10YR 28-JUL-08 16-JUL-18 13,504.70 10.750
PAN AFR INS 110.00 105.00 -4.55 -11.02 -10.26 -10.26 -17.97 -15.32
REA VIPINGO 27.50 27.50 0.00 0.00 0.00 0.00 0.00 0.00 FXD3/2008/10YR 29-SEP-08 28-SEP-18 4,151.60 10.750
SAFARICOM 15.15 15.35 1.32 3.37 10.04 12.45 19.92 34.65
SAMEER AFRICA 6.60 6.50 -1.52 -2.26 -0.76 4.84 -8.45 4.00 FXD1/2009/10YR 27-SEP-09 15-APR-19 4,966.85 10.750
SASINI 15.35 15.00 -2.28 11.52 18.11 9.09 -1.64 -11.50 FXD1/2010/10YR 26-APR-10 13-APR-20 19,394.15 8.790
SCANGROUP 45.00 44.50 -1.11 -1.11 0.56 4.09 -2.73 -9.64
STANDARD GRP 44.00 44.25 0.57 7.93 22.07 20.41 34.09 27.34 FXD2/2010/10YR 1-NOV-10 19-OCT-20 18,849.90 9.307 13.1400 100,000 1
STD CHART KEN 348.00 349.00 0.29 1.16 3.87 5.44 10.79 19.52
TOTAL KENYA 27.25 27.00 -0.92 -1.82 0.93 9.09 9.09 17.39 FXD1/2012/10YR 30-JUN-12 13-JUN-22 16,803.75 12.300
TPS (EA) 34.25 34.50 0.73 -8.00 -4.83 -8.00 -1.43 -23.33 FXD1/2013/10YR 1-JUL-13 19-JUN-23 12,643.05 12.371
TRANSCENTURY 18.30 18.35 0.27 -1.61 -6.62 -4.68 0.00 0.00
UCHUMI SUPER 11.00 10.50 -4.55 -9.09 -18.92 8.25 -18.29 -42.93 FXD1/2014/10YR 27-JAN-14 15-JUL-24 30,520.25 12.180 11.7083 324,300,000 6
UNGA GROUP 44.75 45.00 0.56 -0.55 13.21 12.50 33.33 81.82
ELEVEN YEAR BONDS
FXD1/2006/11YR 25-SEP-06 11-SEP-17 4,031.40 13.750
Corporate Bonds
TWELVE YEAR BONDS
BONDS WEEKLY STATISTICS FEBRUARY 20, 2015
ISSUE MATURITY ISSUED VALUE FXD1/2006/12YR 28-AUG-06 13-AUG-18 3,900.95 14.000
DATE DATE IN MILLIONS COUPON TOTAL VALUE NUMBER OF
ISSUE NO. (%) (KSHS) TRADES FXD1/2007/12YR 28-MAY-07 13-MAY-19 4,864.60 13.000
CENTUM BOND SENIOR UNSECURED FIXED RATE AND EQUITY LINKED NOTES
CTNB.BD.18.09.17/13.50 26-SEP-12 18-SEP-17 2,917.10 13.500 FIFTEEN YEAR BONDS
CTNB.BD.18.09.17/12.75 26-SEP-12 18-SEP-17 1,250.80 12.500
CONSOLIDATED BANK OF KENYA LTD MEDIUM TERM NOTE PROGRAMME FXD1/2007/15YR 26-MAR-07 7-MAR-22 3,654.60 14.500
CON.BD-FXD(SN)/2012/7YR 30-JUN-12 24-JUL-19 1480.60 13.250 FXD2/2007/15YR 25-JUN-07 6-JUN-22 7,236.95 13.500
CON.BD-FXD(SBN)/2012/7YR 30-JUN-12 24-JUL-19 1965.00 13.600
CON.BD-FR(SN)/2012/7YR 30-JUN-12 24-JUL-19 1.00 FXD3/2007/15YR 26-NOV-07 7-NOV-22 17,568.00 12.500
SHELTER AFRIQUE MEDIUM TERM UNSECURED NOTES
FR 1/2011/3YR 11-JUL-11 7-JUL-14 1,416.79 FXD1/2008/15YR 31-MAR-08 13-MAR-23 7,830.90 12.500
FXD 1/2011/3YR 11-JUL-11 7-JUL-14 1,083.21 12.750
FXD 2/2012/3YR 17-DEC-12 14/12/2015 500.00 12.750 FXD1/2009/15YR 26-OCT-09 7-OCT-24 9,420.45 12.500
PTA BANK LTD FLOATING RATE BOND
FXD1/2010/15YR 29-MAR-10 10-MAR-25 20,823.73 10.250 11.0000 6,800,000 1
FR(MTN)/2007/7YR 15-OCT-07 31-OCT-14 1,000
BARCLAYS BANK MEDIUM TERM FLOATING RATE NOTES FXD2/2010/15YR 27-DEC-10 8-DEC-25 13,513.10 9.000 12.5075 5,000,000 1
FR (MTN)/2007/7YR 19-NOV-07 19-NOV-14 1.500
FXD (MTN)/2008/7YR 14-JUL-08 14-JUL-15 1,300 13.000 FXD1/2012/15YR 24-SEP-12 6-SEP-27 21,089.45 11.000
FXD (MTN)/2008/7YR 14-JUL-08 14-JUL-15 0.700
MRM FXD1/2013/15YR 25-FEB-13 7-FEB-28 40,886.33 11.250
FR (MRM) 2008/8YR 27-OCT-08 3-JAN-17 13,785
FXD (MRM) 2008/8YR 27-OCT-08 3-JAN-17 6,215 13.000 FXD2/2013/15YR 29-APR-13 10-APR-28 17,385.85 12.000
CFC STANBIC BANK SENIOR & SUBORDINATED BOND ISSUE TWENTY YEAR BONDS
FR (CFC STANBIC) 2009/7YR 7-JUL-09 7-JUL-16 9,790
FXD (CFC STANBIC) 2009/7YR 7-JUL-09 7-JUL-16 24,020 12.500 FXD1/2008/20YR 30-JUN-08 5-JUN-28 20,360.95 13.750
FXD2 (CFC STANBIC) 2010/4YR 27-DEC-10 22-DEC-14 2,500 7.250
KENGEN PUBLIC INFRASTRUCTURE BOND OFFER 2019 FXD1/2011/20YR 30-MAY-11 5-MAY-31 9,365.80 10.000
FXIB 1/2009/10YR 2-NOV-09 31-OCT-19 15,625.00 12.000 312,500 1
SAFARICOM LTD DOMESTIC MEDIUM TERM NOTE FXD1/2012/20YR 26-NOV-12 1-NOV-32 43,082.72 12.000 13.4452 2,552,000,000 ` 21
FXD2 (SAFARICOM LTD) 2009/5YR 20-DEC-10 20-DEC-15 4,287 7.750 TWENTY FIVE YEAR BOND
FR2 (SAFARICOM LTD) 2009/5YR 20-DEC-10 20-DEC-15 2,000
HOUSING FINANCE MEDIUM TERM NOTE FXD1/2010/25YR 28-JUN-10 28-MAY-35 20,192.50 11.250
FXD (HFCK) 02/2012/7YR 22-OCT-12 14-OCT-19 2,969.10 13.000 500,000 1
FR (HFCK) 2010/7YR 26-OCT-10 2-OCT-17 1,167 THIRTY YEAR BOND
FXD (HFCK) 2010/7YR 26-OCT-10 2-OCT-17 5,864 8.500
I&M MEDIUM TERM NOTE SDB 1/2011/30YR 28-FEB-11 21-JAN-41 23,888.95 12.000
FRN I&M-01/13/5.25 13-DEC-13 8-MAR-19 3,429 (182+2%)
FXD I&M-01/13/5.25 13-DEC-13 8-MAR-19 226 12.800 INFRASTRUCTURE BONDS
BRITAM MEDIUM TERM NOTE IFB 1/2011/12YR 3-OCT-11 18-SEP-23 43,447.35 12.000 11.8033 60,300,000 4
BRTB.BD.22/07/19-0037-13 22-JUL-14 15-JUL-19 6,000 13.000
UAP HOLDINGS MEDIUM TERM NOTE IFB 1/2009/12YR 23-FEB-09 8-FEB-21 19,726.85 12.500 12.2116 3,000,000 1
UAP.BD.22.07.2019 28-JUL-14 22-JUL-19 2000.00 13.000
NIC MEDIUM TERM NOTE IFB 2/2009/12YR 7-DEC-09 22-NOV-21 18,897.65 12.000
NIC.BD.09/09/19-0039-12.5 8-SEP-14 9-SEP-19 5514.00 12.500
CIC INSURANCE GROUP LTD. MEDIUM TERM NOTE IFB 1/2010/8YR 1-MAR-10 19-FEB-18 15,908.05 9.750
CIC.BD.2.10.2019 8-OCT-14 2-OCT-19 5000.00 13.000 IFB 2/2010/9YR 31-AUG-10 19-SEP-19 32,871.55 6.000
CFC BANK MULTICURRENCY FIXED MEDIUM TERM NOTE
CFCB.BD.08/12/21-0042-12.95 15-DEC-14 8-DEC-21 5080.00 12.950 IFB 1/2013/12YR 30-SEP-13 15-SEP-25 38,841.68 11.000 10.9000 50,000,000 1
CBA FIXED MEDIUM TERM NOTE
CBAB.BD.14/12/20-0041-12.75 22-DEC-14 14-DEC-20 7000.00 12.750 IFB 1/2014/12YR 27-OCT-13 12-OCT-26 35,060.55 11.000 10.7004 1,852,900,000 15
MARKET DATA
Global Markets & Currencies
Currencies Europe’s Blue Chips FTSE 100
Kenya Shilling Based on one day performance in local currency NAME LAST CLOSE NET.CHNG PCT.CHNG
CURRENCY BUY SELL MEAN ANGLO AMERICAN/D 1235.50 1223.00 12.50 1.02%
US DOLLAR 91.33 91.48 91.40 % PERFORMANCE IN LOCAL CURRENCY ASSOC.BR.FOODS/D 3042.00 3057.00 -15.00 -0.49%
STG POUND 140.85 141.11 140.98 ADMIRAL GROUP/D 1465.00 1460.00 5.00 0.34%
EURO 103.77 103.94 103.86 COMPANY COUNTRY INDUSTRY LAST CHG % CHG 1-WK YTD 52-WK ABDN.ASSET.MAN/D 461.50 460.50 1.00 0.22%
SA RAND 7.83 7.85 7.84
KES / USHS 31.26 31.43 31.35 AGGREKO/D 1690.00 1676.00 14.00 0.84%
NOVARTIS AG SWITZERLAND PHARMACEUTICALS 97.25 1.4 1.46 2.69 5.3 33.04
KES / TSHS 20.06 20.20 20.13 ANTOFAGASTA/D 752.50 748.00 4.50 0.60%
KES / RWF 7.48 7.58 7.53 FINANCIERE RICHEMONT SWITZERLAND CLOTHING&ACCESSORIES 84.35 1.2 1.44 2.87 -5 -4.2 ARM HOLDINGS/D 1100.00 1099.00 0.00 0.00%
KES / BIF 16.94 17.18 17.06 ASHMORE/D 308.80 308.20 0.60 0.19%
AE DIRHAM 24.86 24.91 24.89 UNILEVER CVA NETHERLANDS FOOD PRODUCTS 37.39 0.52 1.41 0.96 14.5 31.92 AVIVA PLC/D 549.50 548.50 1.00 0.18%
CAN $ 73.15 73.31 73.23 ASTRAZENECA/D 4399.00 4427.50 -28.50 -0.64%
S FRANC 96.13 96.31 96.22 VODAFONE GROUP UNITED KINGDOM MOBILE TELECOMMUNICATIONS 228.4 2.95 1.31 -1.72 2.6 -1.17
BAE SYSTEMS/D 526.50 525.50 1.00 0.19%
JPY (100) 76.80 76.94 76.87
SANOFI SA FRANCE PHARMACEUTICALS 87.84 1.13 1.3 1.28 16.1 19.54 BARCLAYS/D 263.45 260.40 3.05 1.17%
SW KRONER 10.83 10.86 10.84
NOR KRONER 12.03 12.05 12.04 BRIT AM TOBACC/D 3641.00 3660.50 -19.50 -0.53%
DAN KRONER 13.94 13.96 13.95 MOET HENNESSY LOUIS VUITT FRANCE CLOTHING&ACCESSORIES 160.8 2.05 1.29 1.45 21.6 30.95 BG GROUP/D 962.10 951.50 10.60 1.11%
IND RUPEE 1.47 1.47 1.47 BR LAND CO/D 814.50 824.50 -10.00 -1.21%
HONGKONG DOLLAR 11.77 11.79 11.78 NESTLE SWITZERLAND FOOD PRODUCTS 72 0.9 1.27 2.42 -1.3 9.51 BHP BILLITON/D 1575.88 1572.00 4.00 0.25%
SINGAPORE DOLLAR 67.12 67.25 67.18 BUNZL/D 1913.00 1914.00 -1.00 -0.05%
UNILEVER UNITED KINGDOM FOOD PRODUCTS 2805 35 1.26 0.57 6.7 15.77
SAUDI RIYAL 24.34 24.39 24.36 BP/D 444.50 445.70 -1.20 -0.27%
CHINESE YUAN 14.60 14.63 14.61 BURBERRY GRP/D 1896.00 1902.00 -6.00 -0.32%
RECKITT BENCKISER GRP UNITED KINGDOM NONDURABLE HOUSEHOLD PRODUCTS 5705 70 1.24 0.8 9.5 15.25
AUSTRALIAN $ 71.24 71.42 71.33
BT GROUP/D 438.30 436.90 1.40 0.32%
AXA
US Dollar FRANCE FULL LINE INSURANCE 21.25 0.25 1.17 1.97 10.6 7.38 CARNIVAL/D
CENTRICA/D
2909.00
253.12
2942.00
257.10
-33.00
-4.00
-1.12%
-1.56%
BACKGROUND BID ASK BNP PARIBAS FRANCE BANKS 51.43 0.52 1.02 6.24 4.4 -11.9
COMPASS GROUP/D 1124.13 1127.00 -1.00 -0.09%
EURO 1.13 1.13
DIAGEO UNITED KINGDOM DISTILLERS&VINTNERS 1884 17.5 0.94 2.56 1.9 -0.97 CAPITA PLC/D 1163.00 1161.00 2.00 0.17%
JAPANESE YEN 118.68 118.69
CRODA INTL/D 2799.00 2791.00 8.00 0.29%
BRITISH POUND 1.54 1.54
SWISS FRANC 0.95 0.95 TELEFONICA S.A. SPAIN FIXED LINE TELECOMMUNICATIONS 13.27 0.12 0.91 0.68 11.3 17.98 CRH/D 1841.00 1832.00 9.00 0.49%
GOLD LBMA 1,204.30 1,204.40 DIAGEO/D 1876.00 1884.00 -8.00 -0.42%
ZURICH INSURANCE GROUP SWITZERLAND FULL LINE INSURANCE 309 2.5 0.82 1.38 -0.9 15.13 MAN GROUP/D 187.00 183.70 3.30 1.80%
SILVER 16.39 16.43
AUSTRALIAN DOLLAR 0.78 0.78 EVRAZ PLC/D 192.20 190.60 1.60 0.84%
SIEMENS GERMANY DIVERSIFIED INDUSTRIALS 97.48 0.68 0.7 1.58 4 2.42
CANADIAN DOLLAR 1.24 1.24 EXPERIAN/D 1191.00 1192.00 -1.00 -0.08%
SWEDISH KRONA 8.41 8.41 BANCO SANTANDER S.A. SPAIN BANKS 6.45 0.04 0.67 2.61 -6.8 3.39 FRESNILLO/D 830.00 836.50 -6.50 -0.78%
NORWEGIAN KRONE 7.59 7.59 G4S/D 282.90 282.80 0.10 0.04%
BOSNIAN MARK 1.69 1.74 BANCO BILBAO VIZCAYA ARGN SPAIN BANKS 8.79 0.05 0.62 3.42 11.9 1.6 GKN/D 382.67 380.20 2.50 0.66%
DANISH KRONE 6.56 6.57
RUSSIA ROUBLE 61.84 61.85 GLENCORE/D 286.10 283.55 2.55 0.90%
RIO TINTO UNITED KINGDOM GENERAL MINING 3220 18.5 0.58 2.17 7.3 -11.23
TURKISH LIRA 2.45 2.46 GLAXOSMITHKLIN/D 1533.50 1526.50 7.00 0.46%
ICELAND KRONA 132.03 132.33 DAIMLER GERMANY AUTOMOBILES 84.08 0.45 0.54 1.07 21.9 27.01 HAMMERSON/D 660.00 672.50 -12.50 -1.86%
INDIAN RUPEE 62.21 62.23 HARGREAVES LS/D 1063.00 1053.00 10.00 0.95%
POLISH ZLOTY 3.68 3.68 L’AIR LIQUIDE FRANCE COMMODITY CHEMICALS 115.5 0.6 0.52 -0.39 12.3 16.97 HSBC HOLDINGS/D 604.51 601.90 2.60 0.43%
CZECH KORUNA 24.17 24.23 ICAP PLC/D 520.00 516.00 4.00 0.78%
HUNGARIAN FORINT 268.77 269.05 SAP GERMANY SOFTWARE 60.77 0.24 0.4 0.13 4.3 4.17 IAG/D 557.50 564.00 -6.50 -1.15%
INDIAN RUPEE 62.21 62.23
CREDIT SUISSE GROUP AG SWITZERLAND BANKS 23.12 0.09 0.39 5 -7.8 -18.28 INTERCONT HOTE/D 2547.25 2548.00 0.00 0.00%
UKRAINE HRYVNIA 27.75 28.25
ISRAEL SHEKEL 3.86 3.86 IMI PLC/D 1434.00 1417.00 17.00 1.20%
ALBANIAN LEK 123.66 123.96 UBS GROUP SWITZERLAND BANKS 16.47 0.06 0.37 3 -3.6 -11.64 IMPERIAL TOBAC/D 3065.14 3087.00 -21.00 -0.68%
BULGARIAN LEV 1.72 1.72 INTERTEK GROUP/D 2533.00 2524.00 9.00 0.36%
SERBIAN DINAR 59.99 60.19 ABB SWITZERLAND INDUSTRIAL MACHINERY 20.2 0.07 0.35 1.61 -4.4 -10.62 ITV/D 233.30 233.40 -0.10 -0.04%
CYPRUS POUND 0.40 0.40 JOHNSON MATTHE/D 3438.50 3437.00 2.00 0.06%
ESTONIAN KROON 11.70 11.71 BT GROUP PLC UNITED KINGDOM FIXED LINE TELECOMMUNICATIONS 436.9 1.5 0.34 -0.5 8.8 5.79
KAZ MINERALS/D 257.30 252.50 4.80 1.90%
GEORGIAN LARI 2.15 2.21 KINGFISHER/D 339.23 347.90 -8.70 -2.50%
GIBRALTAR POUND 1.54 1.54 DEUTSCHE TELEKOM GERMANY MOBILE TELECOMMUNICATIONS 15.65 0.05 0.32 -1.82 18.1 29.51
LAND SECS GROU/D 1222.00 1234.00 -12.00 -0.97%
CROATIAN KUNA 6.80 6.81
ALLIANZ SE GERMANY FULL LINE INSURANCE 146.9 0.45 0.31 -1.14 7 13.31 LEGAL & GENERA/D 273.10 272.80 0.50 0.18%
KAZAKHSTAN TENGE 185.18 185.23
LITHUANIA LITAS 2.85 2.85 LLOYDS BNK GRP/D 78.01 77.23 0.78 1.01%
PRUDENTIAL UNITED KINGDOM LIFE INSURANCE 1604.5 4.5 0.28 0.31 7.5 19.74 MEGGITT PLC/D 573.50 568.00 5.50 0.97%
LATVIAN LATS 0.51 0.51
MOLDOVAN LEU 18.98 19.08 STANDARD CHARTERED UNITED KINGDOM BANKS 966.8 0.8 0.08 1.09 0.4 -26.53 MARKS & SP./D 494.91 497.30 -2.30 -0.46%
MACEDONIA DENAR 53.96 54.50 MORRISON SUPMK/D 187.60 187.10 0.50 0.27%
MALTESE LIRA 3.41 3.42 BARCLAYS UNITED KINGDOM BANKS 260.4 0.05 0.02 1.54 6.9 1.8 NATIONAL GRID/D 900.41 891.10 9.40 1.05%
ROMANIAN LEU 3.92 3.92 NEXT/D 7312.35 7370.00 -55.00 -0.75%
SLOVAK KORUNA 21.55 21.60 ENI ITALY INTEGRATED OIL&GAS 16.25 UNCH. ... 2.59 12 -6.23 OLD MUTUAL/D 218.20 218.40 -0.20 -0.09%
SERBIAN DINAR 106.00 106.41
PETROFAC/D 829.06 812.00 17.00 2.09%
ARMENIAN DRAM 476.50 481.50 LLOYDS BANKING GROUP PLC UNITED KINGDOM BANKS 77.23 -0.06 -0.08 2.5 1.9 -4.9
ANGOLAN KWANZA 105.30 106.30 POLYMETAL INT/D 586.00 586.50 -0.50 -0.09%
BURUNDI FRANC 1,532.20 1,582.20 DEUTSCHE BANK GERMANY BANKS 28.87 -0.03 -0.09 1.82 15.5 -18.83 PRUDENTIAL/D 1607.40 1604.50 3.00 0.19%
BOTSWANA PULA 0.10 0.10 PEARSON/D 1384.00 1398.00 -14.00 -1.00%
CONGO FRANC 913.00 943.00 ING GROEP NETHERLANDS BANKS 12.6 -0.02 -0.2 1.98 16.3 20.24 RECKIT BNCSR G/D 5677.50 5705.00 -30.00 -0.53%
CAPE VERDE ESCUDO 95.73 97.23 ROYAL BANK SCO/D 398.55 395.90 2.70 0.68%
DIJIBOUTI FRANC 177.00 178.00 BAYER GERMANY SPECIALTY CHEMICALS 124.8 -0.25 -0.2 -1.3 10.4 22.47 ROYAL DTCH SHL/D 2114.50 2109.00 5.50 0.26%
ALGERIAN DINAR 94.25 94.75 REED ELSEVIER/D 1181.00 1178.00 3.00 0.25%
EGYPT POUND 7.63 7.63 BASF GERMANY COMMODITY CHEMICALS 82.71 -0.22 -0.27 -0.65 18.4 -0.05
ROYAL DTCH SHL/D 2197.00 2198.00 -1.00 -0.05%
ETHIOPIAN BIRR 20.23 20.43
GHANAIAN CEDI 3.49 3.51 HSBC HLDGS UNITED KINGDOM BANKS 601.9 -3.6 -0.59 0.62 -1.1 -8.33 REXAM/D 563.00 569.50 -6.50 -1.14%
GAMBIAN DALASI 42.60 43.60 RIO TINTO/D 3238.50 3220.00 18.50 0.57%
ERITREA NAFKA 14.90 15.40 BHP BILLITON UNITED KINGDOM GENERAL MINING 1572 -15.5 -0.98 0.19 13.2 -20 ROLLS ROYCE PL/D 959.00 962.00 -3.00 -0.31%
GUINEA FRANC 7,025.00 7,225.00 RANDGOLD RES./D 4949.00 5025.00 -76.00 -1.51%
BP PLC UNITED KINGDOM INTEGRATED OIL&GAS 445.7 -5.6 -1.24 -1.87 8.4 -9.96
RWANDA FRANC 685.00 696.00 RSA INSRANCE G/D 452.60 452.00 0.60 0.13%
KENYA SHILLING 91.40 91.50 SABMILLER/D 3575.00 3585.00 -10.00 -0.28%
ASTRAZENECA UNITED KINGDOM PHARMACEUTICALS 4427.5 -57.5 -1.28 -2.71 -2.8 11.05
COMORO FRANC 431.95 432.95 SAINSBURY(J)/D 269.30 269.10 0.20 0.07%
LIBERIAN DOLLAR 84.00 85.00
SCHRODERS/D 2997.00 3001.00 -4.00 -0.13%
LESOTHO LOTI 11.62 11.64
LIBYAN DINAR 1.36 1.36 SCHRODERS NV/D 2277.00 2290.00 -13.00 -0.57%
MOROCCAN DIRHAM 9.54 9.55 Global Indices SAGE GROUP/D
SHIRE/D
470.20
5135.00
472.00
5135.00
-1.70
0.00
-0.36%
0.00%
MALAGASY ARIARY 2,805.00 2,885.00
MAURITANIAOUGUIYA 289.00 292.35 NAME LOCATION LAST NET.CHNGPCT.CHNG OPEN HIGH LOW CLOSE STANDARD LIFE/D 421.00 408.50 12.50 3.06%
MALAWI KWACHA 428.54 450.42 SMITHS GROUP/D 1198.00 1186.00 12.00 1.01%
MOZAMBIQUE METICAL 33.43 34.37 DJ INDU AVERAGE NEW YORK 17,985.77 -44.08 -0.24% 18,028.67 18,028.67 17,924.60 18,029.85 SMITH&NEPHEW/D 1183.00 1186.00 -3.00 -0.25%
NIGERIAN NAIRA 198.90 199.00 SERCO GROUP/D 214.05 200.40 14.10 7.04%
FTSE EUROTOP 100 LONDON 3,045.19 -2.48 -0.08% 3,049.96 3,052.97 3,043.86 3,047.67
SC RUPEE 13.47 14.14
SSE PLC/D 1524.70 1535.00 -10.00 -0.65%
SUDANESE DINAR 200.02 201.02 XETRA DAX PF/D FRANKFURT 10,975.72 -26.22 -0.24% 10,976.77 10,991.96 10,965.55 11,001.94 STANDRD CHART /D 976.00 966.80 9.20 0.95%
SUDAN POUND 2,025.50 2,035.60
ST HELENA POUND 1.54 1.54 CAC 40 INDEX/D PARIS 4,819.32 -13.96 -0.29% 4,821.38 4,827.30 4,815.71 4,833.28 SEVERN TRENT/D 2026.65 2033.00 -7.00 -0.34%
SIERRALEONLEON 4,330.00 4,430.00 TATE & LYLE/D 580.50 585.00 -4.50 -0.77%
FTSE MIB/D MILAN 21,784.26 -5.72 -0.03% 21,628.07 21,807.19 21,611.63 21,789.98
SAO TOME DOBRA 20,946.00 22,245.00 TULLOW OIL/D 407.60 398.20 9.40 2.36%
SOMALI SHILLING 704.00 711.00 SMI PR/D SWITZERLAND 8,905.35 5.17 0.06% 8,910.73 8,925.75 8,896.17 8,900.18 TESCO/D 238.65 239.95 -1.30 -0.54%
SWAZILAND LILAGENI 11.62 11.65 UNILEVER/D 2779.00 2805.00 -26.00 -0.93%
THAI BAHT 32.55 32.57 HANG SENG INDE/D HONG KONG 24,832.08 47.20 0.19% 24,836.05 24,871.79 24,806.06 24,784.88
UNITED UTIL GR/D 936.00 941.50 -5.50 -0.58%
TUNISIAN DINAR 1.93 1.94 NIKKEI 225 INDEX TOKYO 18,332.30 67.51 0.37% 18,336.50 18,360.92 18,297.67 18,264.79 VEDANTA RES/D 599.50 575.00 24.50 4.26%
TANZANIA SHILLING 1,829.00 1,839.00
VODAFONE GROUP/D 229.20 228.40 0.80 0.35%
UGANDA SHILLING 2,864.00 2,874.00 ALL ORDINARIES AUSTRALIA 5,845.63 -24.20 -0.41% 5,869.80 5,876.40 5,837.70 5,869.83
CFA FRANC 578.14 585.14 WEIR GROUP/D 1916.00 1862.00 54.00 2.90%
CFA FRANC 578.14 584.14 STRAITS TIMES/D SINGAPORE 3,435.66 19.75 0.58% 3,428.71 3,443.05 3,425.89 3,415.91 WOLSELEY/D 3984.00 3975.00 9.00 0.23%
MAURITIUS RUPEE 33.29 33.39 SSE COMPOSITE/D SHANGHAI 3,247.43 25.07 0.78% 3,230.88 3,255.73 3,230.77 3,222.36 WPP PLC/D 1503.00 1506.00 -3.00 -0.20%
SOUTH AFRICA RAND 11.62 11.63 WHITBREAD/D 5010.00 5025.00 -15.00 -0.30%
ZIMBABWE DOLLAR 378.00 381.00 S&P SENSEX/D MUMBAI 29,199.54 -262.73 -0.89% 29,446.21 29,462.09 29,178.26 29,462.27 KENYA AIRWAYS/D 10.00 10.00 0.00 0.00%
LI E
MANAGEMENT PERSONAL FINANCE
LEADERSHIP
W≥iting on the wall fo≥
companies banking on
competitive advantage
Page 28
SPORTS
Money Man
vs Pac Man:
Reactions to
mega boutPage 31
Top selling p≥inciples fo≥ all seasons and deals

that quickly, at which point I simply say, “I
understand. I just wanted you to know my
intention.”
6. Not asking for the close early enough

I noticed my sales team was presenting long
after the buyer had seen enough. Ask, “have
you seen enough information to make a deci-
sion?” This works like a miracle with custom-
ers saying, “no I haven’t,” allowing the sales
person to continue with the presentation.
7. Waiting until the end of the presenta-

tion to share the price
This is a mistake because most of us were
taught to build value, then show the price.
This results in a buyer that, no matter how
intrigued they might be by your presenta-
tion, is wondering the entire presentation
what the cost is.
After letting the buyer know my intention,
I then share the price. Don’t wait to answer
“how much?”
They may tell you before the presentation,
“that is too high,” at which point you can sim-
ply agree with the customer. “Of course it’s too
much, you haven’t even seen what it will do.
Allow me to show you why it’s this price and
what it will do for you and why it is the best
value in the marketplace.”
Bringing price up early makes you look
Ask these questions: “How do you feel When making confident, shows you have nothing to hide.
BEST PRACTICE Sales changed and organisations, about our price?” “How do you feel about our a presenta-
term?” “Why would you do business with me tion, do not 8. Ignoring influencers
managers and their teams have to follow suit when you have done it with our competitor delay to close I have made the mistake many times where I
for so long?” a deal when put too much attention on the decision-maker
S
ales people, sales organisations and nals. You being present is more important If you don’t get the answers to the hard you believe and missed the influencers. Ask, “Who else
sales teams have to change the way than the presentation. Of course, you want questions you will find yourself not closing prospects other than yourself will influence your deci-
they are handling customers in this a great presentation, but never become so deals and not learning why. have enough sion or that you would like involved?” Find
competitive world. The old ways of selling dependent that you are unable to know what information. out why they are important to the decision
are changing. is important, who the influencers are and 4. Believing price solves clients’ problem and what is most important to them.
Here are 10 essential selling principles that when you are getting the buy in and when No one buys a price, ever! I have been in sales
most sales people and sales organisations ei- you are not. my entire adult life and have been tricked by 9. Using a free trial to close a deal
ther get wrong or don’t implement: thousands of buyers who said “price is the Free trials without some timeline and com-
3. Not asking hard questions only issue.” Your buyer may seem obsessed mitment to invest money and energy almost
1. Not selling the solution It is my experience that sales with price, demands your low- never work and become cash flow problems
People and companies buy things only in people miss opportunities to est price and claims the budget for the company that offers them. Grow up
an attempt to solve a problem. Sales people build trust by not asking the Sales cannot be violated. Despite all and close the deal or go get another customer,
spend too much time on the offer rather than hard questions. This either this, every one of them will pay a because free will break your company.
people miss
assuring the buyer that the product, com- comes from naivety or a lack higher price.
pany and individual will solve the problem. of proper training to truly get oppo≥tunities 10. Not practising urgency
This typically results in presentations that in communication with the to build t≥ust 5. Presenting without the in- Too many sales organisations never insist on
are too long and prices that are too low. Focus client. I was on a sales call by not asking tention to close closing a deal for fear of appearing to be a nui-
on how your product and the company can with one of my top people When I start a presentation I sance. If you truly believe in your company,
the ha≥d
solve the three most critical problems your and while he was presenting make it clear to the prospect product and service, you must learn how to
client is trying to solve. to the group I sensed that the questions that my intention is to have the insist on closing the transaction now. Your
decision-maker wasn’t buying product or service being used by sales team should train and drill on how to
2. Focus on ‘sales presentation’ what he was saying. the client this week. “Thanks for your time press without being unprofessional or ap-
I have seen sales people spend hours creating I interrupted, “you don’t believe a word of today, my goal is to have my product to your pearing to pressure.
presentations and then become so depend- what he is saying, do you?” The client started company by the end of this week.”
ent upon the slideshow and every detail that laughing and said that was exactly what he The customer usually then tells me -ENTREPRENEUR
they are no longer aware of vital buying sig- was thinking. they have no intention of doing anything
Life: Finance
An M-Pesa agent: long distance runners and the development of sim-

The money trans- ple cell phone based money transfer, championed
fer service is under by Safaricom’s M-Pesa. While the athletes are still
threat from many crossing the line first, M-Pesa is under threat on sev-
fronts, includ- eral fronts with the regulator wanting to cut in the
ing banks coming competitors to Safaricom’s once dominant advan-
up with cashless tage. Plus, for example, banks like Equity Bank, that
transaction plans. has almost half the bank accounts in Kenya —plans
to issue smart phones to retailers to allow cashless
transactions using the new micro chip cards in a
move expected to increase the bank’s income from
its payments processing business.
Competition to established market leaders often
comes from the most unexpected places, with a sort
‘Black Swan’ like unimagined unpredictability. For
instance, in education, the world’s largest school
could be considered to the newly created non-profit
Khan Academy that has 10 million students par-
ticipating world wide in a month.
Their motto is providing free world class educa-
W≥iting on the wall fo≥ companies

tion to everyone, anywhere.
Khan was a futures trader, not even a teacher,
who began when he was asked to teach his niece
math and began doing it in an entreating manner
banking on competitive advantage

uploading videos on You Tube and it just grew from
there – transforming old style chalk board. This has
provoked a questioning fundamental assumptions
about ideas of what is possible in education.
BY DAVID J. ABBOTT growth in stock market value in the 70 year period. Companies don’t generally innovate, it is markets
STRATEGY Kodak despite inventing digital photography did influenced by fast-changing technology and con-
A
ll competitive advantage is temporary in not keep pace with the times and today barely ex- sumer demand that constantly innovate. Markets
True strategies are Kenya today. The idea of a sustainable ists. Only one of the original 100 to survive and are dynamic, but despite the hype most companies
competitive advantage is a myth. Compa- outperform the market over the 70 years was GE are not. Companies are often unresponsive to what
commitments costly nies are poor runners in a Red Queen’s race where – General Electric. is happening and just do their best to catch up.
one has to run fast just to stay where they are. One would find the same pattern, in the much It is questionable if most companies have a stra-
to reverse in terms of In 1917, Bertie Forbes, publisher of the American newer, Nairobi Securities Exchange, the market tegic plan, rather than an operational plan in a ‘to
Forbes magazine created his first list of the largest leaders of yesterday, say 20 years ago, are not those do’ list style. True strategies involve commitments
resources invested US companies. Seventy years later the magazine today. Market leaders of tomorrow that understand that are difficult or costly to reverse once made and
published the original list and asked ‘where are the Red Queen race nature of business may be com- involve significant inputs of time, finance and other
they now’? Sixty-one on the original list had either panies that don’t even exist yet. resources. Writing is on the wall for Kenyan business
ceased to exist, or merged or gone bankrupt. The Red Queen’s race refers to an incident that — a sustainable competitive advantage does not ex-
Twenty-one were still around but dropped out appears in Lewis Carroll’s Through the Looking- ist, there is just a never ending Red Queen’s race to
of the top 100 list. Of the remaining 18, included Glass that involves the Red Queen, a representation create sources of a temporary advantage.
were Citigroup and Proctor & Gamble that have of a queen in chess, and Alice constantly running As Jeff Bezos, the founder of Amazon said: “There
a presence in East Africa. but remaining in the same spot. are two kinds of companies, those that work to
One would think these could be called ‘excel- “Well, in our country,” said Alice, still panting a charge more and those that work to charge less”.
lent’ companies. But the answer is: No. In looking little, “you’d generally get to somewhere else — if you David is a management consultant
deeper, with the exception of GE and Kodak every run very fast for a long time, as we’ve been doing.” [email protected] and author of ‘The Manager
one of them had under performed the average Kenya is known globally for the prowess of its And The Red Queen’s Race’.
What is the meaning of ‘the custome≥ is always ≥ight’ ?

E
very business owner and successfully bridge any gap between Although it may seem hard to do This will help you figure out next steps that you should hide behind the fine
customer-facing employee their company’s performance and a with an agitated, disappointed cus- and how to deal with the issue. print of your terms and conditions.
has heard the saying “the client’s expectation. tomer, employees need to listen and 2. Own your mistakes, but only But if someone expected you to pro-
customer is always right.” Mastering this art is highly rel- be sympathetic to a complaint. Avoid your mistakes. vide a service that you clearly don’t
This makes the companies who evant to service-based businesses. becoming defensive, as this will usu- Accepting the company’s mistakes provide, point that out. Providing
say it — and the customers who hear With product-companies, there’s less ally escalate the situation, rather than is the #1 rule for crisis communica- a better understanding might give
it — feel good. But it’s simply not al- ambiguity in customers’ dissatisfac- diffuse it. tions. If your service fell short in any you a better chance at retaining that
ways true in the real world. tion: Complaints usually center on the Then when it’s appropriate, ask way and the customer is upset, im- customer.
Early on as my company, Luggage product’s being broken or the wrong questions to understand what the mediately acknowledge where the 3. Outline how you’re going to
Forward, was being developed, I re- color. On the other hand when serv- person was hoping to receive from company failed. This is important make things right.
ceived a valuable piece of advice: “Cus- ices are provided, there’s a lot of room the company’s service or if the organ- for demonstrating that you stand If at all possible, try to resolve any
tomers are not always right. They’re for interpretation of how a customer’s ization could have done something behind your service and are inter- issues on the spot. Train employees
just never wrong.” This small, but expectations shouuld be met. differently. Figure out whether what ested in resolution. to assess the situation and empower
important distinction has enabled Based on my experience, I suggest happened was your company’s fault If any part of a customer’s dissatis- them to create a resolution without
me to approach customers’ issues in following these steps to achieve mutu- at all. faction doesn’t pertain to the service a manager’s approval. If clients can
a more productive manner. ally satisfactory resolution of issues Diligently uncovering the expecta- that he or she could have reasonably have their problem fixed as soon
What separates the truly excep- arising from a companyservices: tions of the customer and how they expected you to provide, be sure to as possible, everyone will be much
tional customer-service organiza- 1. Listen first. Ask questions were not met lets you understand the say this. (This is the “customer is not happier.
tions from the rest is their ability to later. person’s position and starting point. always right” part.) It doesn’t mean -ENTREPRENEUR
Life: Management
How ave≥age students end up One of the peo-

ple to watch out
getting all the luc≥ative jobs

for is the know-
it-all type who
keeps talking
and interrupt-
CAREERS Managers are keen on meeting group write it out in a test and how many hours ing colleagues.
you slave away behind a computer screen
objectives, not impressive CVs and school papers has very little to do with the value decision
makers are looking for. It is about your abil-
sire to work for? What makes them this ity to help them achieve their objectives.
marketable? Repeat after me; their objectives. I’ll break
CULTURE
Fou≥ people that
The answer is to become attractive, too. this down; and, excuse me if it hurts.
SERAPHINE RULIGIRWA- To have something most other people do You were a straight ‘A’ student, you gradu-
KAMARA not. To be deemed worthy of pursuit by the ated top of your class and your resume is a
top orgnisations known to pay well. yardstick for excellence. Wonderful! They
meetings should
Y
ou know of lucky people who seem Ahead of our KCPE examinations, the are only interested in you only if you can
to rise towards the peak in chosen
fields. You worked together but
they left to join another organisation at
goal was to earn high enough
marks to join a national school.
At KCSE level, the goal was to
show them what you can do.
Look, I know your parents
told you to work hard and you
tame fo≥ p≥og≥ess
G≥eat
A
a more senior level. Four years later, you excel and join top universities would get a great job. You droning speaker, a dull PowerPoint presentation
are still working towards a promotion and that were few then. Now I see companies a≥e probably have a great job and and a pot of stale coffee. Who doesn’t love meet-
a Sh15,000 pay increase after completing the word university plastered att≥acted to you could go much higher but ings? OK, who does love them?
your 4th certificate course in delegation, all over nondescript build- someone who it is just not happening. Great Many people have joined the anti-meeting camp, with 47
strategy execution or those so-called time ings. companies are attracted to per cent of the employees surveyed in 2012 by Salary.com,
is somebody,
management programmes that end up wast- The desirable national someone who is somebody, saying meetings are their biggest time suck at work.
ing your time. schools and universities had who is doing who is doing great things and Poorly run meetings receive a bad rap. But a good session
You keep updating your LinkedIn profile pass marks. You didn’t just g≥eat things definitely going places. increases productivity and facilitates collaboration among
and are now wondering whether such at- walk in. They picked you based It doesn’t help to go to other team members. The key difference between a great meet-
tempts are in vain. Former colleagues are on on your academic excellence. places if you are carrying your ing and an epic waste of time? The participants.
the last stretch to reaching regional manage- The career marketplace works a little dif- success obstacles along with you. You want The following are three personalities you will want
ment status. Wow, you are impressed. ferently. It assumes that you already have to pay more attention to doing great things at every meeting as they naturally play off one another’s
These were not the ‘A’ students in college the smarts and concentrates more on the that create real value and being a profes- strengths and keep their colleagues on task:
as you recall and looking at how much you value of those smarts. This is where naive sional who stands for truly meaningful The leader sets the tone and agenda for the meeting
put in on a daily basis, any serious organisa- bookworms get outsmarted. Employers are values. and ensures that everyone contributes. She knows how
tion should elevate you. keen on their esteem, their positioning, their You are going to achieve that by reverse to delegate and listen and then acts swiftly to mediate
How is it that they seem to be so attrac- market share and their results. orchestration. Start with the people, things conflicts.
tive to the branded companies you so de- How much you know, how well you can and places you desire to attract and work A team player would ideally be one among many such
backwards to yourself. Needless to mention, players at the meeting. But often individuals attend meet-
you are not going to do this well if you do not ings with their own agendas. At least one team player is
appreciate values the employers or partners useful for bringing energy and enthusiasm to the group.
you’d like to attract espouse. This person builds momentum by jumping on assignments
It is in those values and ethos that all and tackling conflicts as they arise.
your magical answers lie. That is your first The creative mind type is the idea person, offering fresh
assignment. Find out what kind of people ideas and solutions and working well with the team player
they hire. It will likely be creative think- to bring concepts to fruition.
ers, confident presenters, entrepreneurial In contrast, the meeting would be better off without the
minds, self-starter managers who demon- following four types in the conference room:
strate ownership and responsibility and The negative Nancy is someone whose favourite phrase
exhibit leadership without titles. is “this will never work.” Being realistic is one thing but this
Have these down and build your pro- person rarely has something useful to contribute.
file based on these principles. Not your The unprepared one asks questions that make it clear
LinkedIn profile but rather your person- that he hasn’t prepared. He can’t offer an educated opin-
ality profile. ion and wastes everyone’s time gathering information he
Use your current employment to show- should have collected beforehand.
case this profile by living it every single The know-it-all thinks she’s at a meeting of one, with
minute. Work that profile until you per- everyone else serving as her audience. She provides lengthy
sonify it. Build the professional capital you remarks on every point, drowning out others’ opinions.
gain from being a model of human talent The quiet one might have great ideas, but never voices
as you focus on attracting best career op- them. This isn’t someone who is desirable to have at a brain-
portunity. storming session or a planning meeting.
Most people want the momentum but When you bring several diverse personalities together,
few understand you have to work at it. Keep they’re bound to disagree occasionally. Conflict can be a
your eyes on the prize ahead. Exciting, de- great catalyst for progress, but interpersonal clashes aren’t
manding, and even scary? Good. If it isn’t likely to lead to your company’s next big idea. These con-
scary, you’re on the wrong track. flicts almost guarantee an off-topic meeting and provide
You receive trust, respect, credibility and fodder for office gossip.
a unique positioning in the marketplace.... To avoid nasty conflicts, structure your meetings around
These quickly transform into great oppor- 30-minute time limits. If conflicts do flare, redirect the con-
tunities, money, recognition, whatever you versation so the meeting can end on time. And to meet this
want. Yes, literally. goal, establish a “no-criticism zone” and encourage team
members to embrace different views.
Seraphine is an expert on atti-
At work, the trust and credibility you get — not colourful CV — is directly proportional to your tude and human potential. Email: -ENTREPRENEUR
salary and perks. [email protected]
Life: Law
Business skills fo≥ conve≥ting

TIMES CROSSWORD 25,195
good ideas into silve≥ and gold

money out of your innovation you need sation and that is debt and equity. Debt
ENTERPRISE Woo venture business skills. capital is out of reach for most young
In Kenya, many innovations lie in innovators as most of them lack collat-
capitalists by giving your waste and many get lost. The simple eral security. Furthermore, the initial
reason for this is that the innovators cash flows are not certain, therefore,
ideas a legal foundation were unable to commercialise their exposing the innovator to a high liquid-
ideas due to lack of business skills. The ity risk. Not many lenders are willing to
innovators seemed to be more techni- finance new ideas.
cal than enterprising. When promising In my view the most viable source of
BUSINESS LAW innovations lie in waste then this hurts financing would be equity in the form
the economy. of venture capital. There are a number
CATHY MPUTHIA One of the biggest challenges that of venture capitalist firms that are will-
innovators face in developing their in- ing to finance innovations.
The five essential entrepreneurial novations is limited finance. Commer- The benefits accrue jointly to both
skills for success include concentration, cialisation is an expensive affair that parties as agreed. If it is true that there Across1 Down
discrimination, organisation, innova- requires heavy capital investment. are a number of venture capitalists Travelaroundinvehicletakingoneforar 1Stomachaboy’sfilledafterevery-
tion and communication. Innovators have two main options seeking out innovations to invest in ide?(5) oneelsehaslefttable?(9)
of raising the capital for commerciali- and there are a number of innovations 4Halfoftheseatstoberemovedrepeatedly 2PoormarkinaspectofEnglishLanguage?
indance(3-3-3) Notright,notright!(5)
-Harold S. Geneen then what could the gap be?
9Cheeseleft—thisperson’swantingsom 3Sofinal,itupsetdepartinglover?(4,4)
Here is a checklist for innovators to
F
ethinghot(9) 4Criminal’sfirstperiodinprison(4)
rom the quote above it is clear that attract venture capitalists: 10Headlesschickenorsomeotherbird(5) 5Sailorabouttofacebattlegivingemotion
while innovation is a key ingredi- The industrial or commercial ap- 11Attempttoavoidthirdinphysics,auniver alresponse(10)
ent of success, as a standalone it plicability: For a venture capitalist to be sitydegreetobringdis-tress(6) 6BomberinlocationoffScottishmainla
is not sufficient for growth. A number interested in your innovation it must 12Change,note,hoardedinasortofavar nd(6)
of other skills are important for success have commercial applicability. Invent ice(8) 7Earlyscientistusinghollowvesselfilledw
of your enterprise. While the Kenyan to solve a problem. 14Onecharacterhasnohesitationgettingi ithnitrogen(9)
Government has put in place a number Corporate governance: Form a ntopoet—notaseriousstudent(10) 8WomanentertainedbyAmericanniec
of policies to stimulate innovation, in- company as the legal entity to run with 16Advocateoftheutilitarianfacto-ry(4) es(5)
cluding Vision 2030 and the Science, the innovation and ensure its corporate 19Boat’spassagearoundlake(4) 13WithdefectiveC,awreckedpianoisdrea
Technology and Innovation Policy, in- structure is well defined. Keep proper 20Flattenedshopbuildinginasec- dfulforpianist(10)
ond?Onthecontrary(10) 15Minusculecow,onegettingmed-
novators need to take personal initia- financial records and have in place a
22Author’snewventurepenningintroduct icalattention?(5-4)
tive to thrive. good board.
iontoguidebook(8) 17Deceived,putrightdayslater(3,6)
Being innovative alone is not enough Protect your innovation: Protection
23Mumisholdingreligiousbooks— 18Speedofcomputeroperationmakesperf
for success. Innovators should acquire shows that your innovation is indeed oneapparentlypraying?(6) ormanceadisappoint-ment(8)
some business skills to ensure their in- original and fortifies the venture capi- 26Artistdiedhavinghadworkput 21Startplaystrippedtothewaist?(3,3)
novation grows for greater impact. talist’s position in the market. backaroundgallery(5) 22Mistakesmadebynoviceslosinghearta
Many times inventors die without Avoid being a loose cannon ball 27Rainswampingeverything?DrFosterw ndkeepingquiet(5)
seeing the fruit of their ideas. about your innovation before setting ouldhavelikedpuddlethus!(9) 24Thatistosaywhatawiseoneissuppose
I will use the case of Daisuke Inoue, ground for venture capitalists. Avoid 28Warriorisbroughtbackbyname- dtosay?(2,3)
the inventor of the karaoke machine. talking big and marketing without hav- lesscomrade—forburial,say(9) 25Grantnotinitiallyavailablefortreatme
While I don’t know if he is still alive, he ing in place something that would woo 29Ratherdismissiveofresistanceseenasi ntroom(4)
failed to patent his innovation despite investors. Venture capitalists are turned nsignificant(5)
its global repute. Had he did, his story off by big talk and little action.
would have been different.
Innovators ought to get business Venture capitalists have little respect for people Mputhia is the Founder of C M Advo-
skills to boost their creations. It is not
enough to have an innovation, to make
talking big without substance. cates. [email protected].
Twitter: - @cm_advocates
SUDOKU PUZZLE 196
How to play
Fill the grid so that every row, every column and every 3x3 box
contains 1-9.
FRIDAY’S SOLUTIONS You solve the puzzle with reasoning and logic and not
mathematical ability
WORD WHEEL QUICK CROSSWORD
CODEWORD
(Solution 505) Due to a technical hitch, we will
Solution no. 3171
ORGANICS publish the solutions to quick
crossword 0704 tomorrow
SUDOKU 195 TIMES 25,194

WORD BUILDER
Solution no. 511
TRIO 506
IOC
Money Man vs Pac Man: Reactions to mega bout

TITLE FIGHT The showdown on the Strip is “May Day is Pay Day” - Jamal.
“Outrageous in Vegas” - Jake Hay-
likely to be one of the richest, if not the richest, ward.
“Money Man vs Pac Man” - Chris
fights of all-time with estimates at Sh18 billion Brophy.
“The Wait is Over...” Ajinwood
I
t’s On” - a common reaction as news “Mayweather announces he’s Although not everyone is con-
broke that the long-awaited show- fighting Manny Pacquiao. Good luck vinced...
down between Floyd Mayweather guys. A fight we all been waiting for” “The Ultimate Pension Plan” - pop
and Manny Pacquiao will go ahead. - Britain’s two-time world champion band Honours.
The boxers are set to finally clash at Amir Khan. “The 5 Year Engagement” - Dip.
the MGM Grand Hotel in Las Vegas on
Saturday 2 May. How much is it worth? Can I watch the fight?
Mayweather is unbeaten in 47 pro- The showdown on the Strip is likely to Yes, but be prepared to pay and be
fessional fights; Pacquiao has 57 wins be one of the richest, if not the richest, ready for a late night if you’re in Eu-
and five losses from 64 contests. fights of all-time. rope, where the time difference means
Here, we look at reaction to the “It’s not wandering into the realms the fight might not start until the early
news, the tale of the tape, odds, what of fantasy to suggest they might come hours of Sunday, May 3.
promoters and journalists are saying, away with $100m (Sh9 billion) apiece,” Pacquiao is contracted to HBO and
and throw a few names into the ring said BBC boxing commentator Mike Head to head Mayweather to Showtime, which was
about how the bout might be billed... Costello Floyd Mayweather Manny Pacquiao one reason for the protracted negotia-
“The details haven’t been released Money Nickname Pac Man
tions, but the rival firms are collaborat-
What are the boxers saying? at this stage as to what they are guar- ing on a pay-per-view telecast.
Las Vegas, USA Home town General Santos City, Philippines
Mayweather (American, 37): “What anteed. The final earnings won’t be “This is the biggest boxing event of
the world has been waiting for has known until after the fight and the 24 February 1977 (37) Date of birth 17 December 1978 (36) all time, we’re confident of that,” said
arrived. Mayweather vs Pacquiao on pay-per-view sales. Orthodox Stance Southpaw Ken Hershman, president of HBO
May 2, 2015 is a done deal. “This is a fight between the two best 5ft 8in Height 5ft 6in
Sports. “We couldn’t be prouder to be
“This will be the biggest event in boxers of the current era. It’s actually a part of it and help craft it.”
47 fights, 47 wins (26 KOs) Pro record 64 fights, 57 wins (38 KOs), 5
the history of the sport. Boxing fans quite rare in boxing that the two best Mayweather-Pacquiao is expected
losses, 2 draws
and sports fans around the world will fighters in any era happen to be in the to break the record for pay-per-view
witness greatness on May 2.” same weight division. WBC & WBA welterweight, WBC Current titles WBO welterweight buys in the United States. The current
light-middleweight
Pacquiao (Filipino, 36): “I am very “It is even more rare that they record of 2.4 million was set when May-
happy that Floyd Mayweather and I meet together in the same ring. This weather fought fellow American Oscar
can give the fans the fight they have is a monster fight.” Evander Holyfield. - love him or hate him.” de la Hoya in 2007.
wanted for so many years. “Once it’s made, the PR machine
“I dedicate this fight to all the fans The promoters’ view goes into overdrive. It’s like the circus What’s in a name? What are the odds?
who willed this fight to happen and, Pacquiao’s promoter Bob Arum, of coming to every town in America,” This could be one bout that sells itself, The fight is expected to draw record
as always, to bring glory to the Phil- Top Rank Promotions, said his fighter Maloney told BBC Radio 5 live. but already speculation has started on betting, with tens of millions wagered
ippines.” would start training on March 9. “I think they will do a world tour. It how to brand it. in Nevada’s legal sports books.
“This fight took five or six years of wouldn’t surprise me if they come to Boxing has a rich history of bigging “Outside of the Super Bowl, this
Reaction from elsewhere negotiating, arguing, and egos get- England and do a press conference be- up its biggest bouts - who could forget could be the single biggest wagering
“Can’t wait to see @FloydMayweather ting in the way before it finally came cause England has a massive pay-per- Muhammad Ali’s Thriller in Manila event we’ve ever had,” said Jay Korne-
and @MannyPacquiao fight on May to fruition. view market they will want to catch. and Rumble in the Jungle? gay, Westgate Las Vegas sports book
2! #MayweatherPacquiao” - tweeted “I equate this to five or six years of “Manny Pacquiao is a very proud Perhaps less well known is Ali’s director.
former boxing champion Sugar Ray Super Bowls all wrapped into one fight. person. He said this fight is not just 1981 fight in the Caribbean, billed as Mayweather is the strong odds-on
Leonard, who won titles in five weight It will be the biggest boxing event of all- about boxing, it’s about my country, the Drama in Bahama, where he lost favourite to win, according to British
divisions. time. Boxing needs this fight.” the Philippines. He is going in there on points to Trevor Berbick. bookmakers.
“Mayweather v Pacquiao is on!!!! Kellie Maloney formerly managed with a lot of pride and honour We asked followers of the BBC Approximate odds: 1-3 Mayweather.
Fight everyone wants to see! May 2nd! I Britain’s world heavyweight champi- “Floyd Mayweather is the flashiest, Sport account on Twitter to come up 5-2 Pacquiao. 20-1 Draw.
can’t wait!!” - undefeated Welsh fighter on Lennox Lewis, and was part of the most arrogant fighter I’ve ever come with their own ideas. Here are some
Joe Calzaghe. team that negotiated his fight against across. He’s just great for the business of the best: -BBC
Nadal stunned by Fognini in Rio

as clay winning st≥eak b≥oken
F
abio Fognini pulled off a huge said the world number 28, who has win over Uruguayan Pablo Cuevas fin-
upset, stunning top seed and been in good form this year since win- ished at 3.30 a.m. on Saturday.
holder Rafa Nadal 1-6 6-2 7-5 in ning the Australian Open doubles title Fognini played a long last eight
the Rio Open semi-final on Saturday. with Simone Bolelli last month. match that lasted more than three
The Italian’s spectacular victory “Rafa is always difficult. From the hours on Friday before he overcame
ended world number three Nadal’s second set I played really well, and I Argentine Federico Delbonis. Spanish tennis player Rafael Nadal returns the ball during his ATP Rio Open semi-fi-
52-match winning streak in semi-fi- tried to change a little bit to be more “I’m super happy, and obviously nal match against Italian Fabio Fognini in Rio de Janeiro, Brazil on February 21. AFP
nals on clay and earned him a place in positive on court,” he was quoted as tomorrow I will have to battle David,
the final against David Ferrer. saying on the ATP Tour website. who has always beaten me ... I will ob- this week in Rio,” Fognini said after his final with a 7-5 6-1 win over Austrian
“I’m really happy about this match. Nadal had complained of poor viously be happy if I win. If I lose, I will win that took two hours and 17 min- Andreas Haider-Maurer.
I beat the best player on this surface,” scheduling after Friday’s quarter-final also leave with the good memories from utes. Second seed Ferrer reached the -Reuters
The OUTL OO K
ECONOMIC ANALYSIS & COMMENTARY with Anzetse Were
www.businessdailyafrica.com
GOVERNANCE Imposing taxes is one of the most intellectually lazy ways of generating income Russian economy
This is how county still at ≥isk f≥om
oil p≥ice, sanctions
leade≥s can att≥act The Russian economy and ruble are still
at risk from oil price volatility, Western
sanctions and speculative behaviour on
sma≥t investment
the foreign exchange market, the central
bank’s First Deputy Governor Ksenia Yu-
dayeva said on Friday.
“It’s premature to say that crisis trends
in the economy have been overcome,” she
T
he decentralisation of govern- advantages can be further capitalised told the Federation Council, Russia’s up-
ment has ushered in counties upon and new competitive advan- per house of parliament.
complete with power previ- tages created and actualised. She added that the central bank was
ously exercised at the central level. Further, it is crucial that impor- ready to reduce its minimum require-
But after the last General Election tant county leaders are identified. ments for banks’ loan-loss provisioning if
and creation of the county structures, These include both those who live they encountered financial difficulties.
most local governments did the pre- in the county and those with an at- “If suddenly there is crisis with pay-
dictable and determined that the best tachment to the entity. Kisii governor James Ongwae and other county leaders during a past meeting in ments we can use the measure of reduc-
way to generate investment revenue These leaders should be iden- Naivasha. County governments should develop investment and entrepreneurial ing reserve requirements,” she said.
was by imposing more taxes. tified from all levels and include activities. FILE “Experience shows that this measure
Arguably this is one those in the pri- helps with (financial) shortcomings be-
of the most intellectually vate and public to make the units attractive for in- source pool of employable individu- fore they arise.”
lazy means of generating The≥e a≥e sectors, NGO vestment to both foreign and local als with skills which can be effectively The Russian economy is set to see its
income. sector, village investors. employed at the county level. first recession this year since the after-
I argue here that nume≥ous c≥eative elders, women This includes reducing adminis- Counties should, in the long math of the 2008-2009 global financial
there are numerous cre- st≥ategies that and youth lead- trative and regulatory costs of doing term, consider setting up invest- crisis as sanctions imposed on Moscow
ative strategies; short, counties can ers as well those business, creating clear implementa- ment funds where excess revenue for its role in the Ukraine conflict and a
mid and long term, that from the disabil- ble strategies for ensuring stability can gain interest. sharp drop in oil prices bite.
counties can deploy to deploy to att≥act ity community. and security, developing robust ed- This can be divided into short, Yudayeva added that the peak of ruble
attract the right type of the ≥ight type of The coun- ucation and health structures and medium and long term strategies volatility had ended.
investment which can investment which ty leadership addressing corruption by develop- which include deposits, Treasury The rouble fell to a record-low of 80
yield revenue. should be con- ing transparent county level public bills, Treasury and corporate bonds rubles per dollar in mid-December, but
An important action
can yield ≥evenue sulted to develop financial systems. as well as strategic equities with the has recovered since and has been trading
that can be taken imme- an investment ultimate aim of creating a county mostly between 60 rouble and 70 rubles
diately is to determine strategy in order Define skill needs ‘‘sovereign wealth fund’’. this month.
competitive advantages to, among other Counties can, in the medium to long Finally, county governments Meanwhile Kiev has accused Russia of
of a county and build on them. things, identify county needs (health, term, make efforts to define skill should make efforts to learn from sending more tanks and troops into east-
The strategies should articulate a education, infrastructure etc), viable needs and map out career paths of investment and entrepreneurial ern Ukraine and said they were heading
means through which the county can projects related to meeting these employees. activities so as to structure future towards the rebel-held town of Novoa-
capitalise on economically viable ac- needs, sources of funding, develop They can identify people suited investment drives in a productive zovsk on the southern coast, expanding
tivities that already exist, consult with capacity required to raise funds and for key jobs as well as develop pro- way. their presence on what could be the next
industry experts on how they can be source skilled individuals needed to grammes — in conjunction with sec- Ms Were is a development econo- key battlefront.
made more profitable and create an manage and implement projects. In ondary schools, vocational schools mist. [email protected];
executable means through which the the mid-term counties need to strive and universities — to create a re- twitter: @anzetse - REUTERS
GLOBAL MARKET WATCH CURRENCY RATES

DJ INDU FTSE 100 XETRA DAX CAC 40 FTSE MIB SMI PR
ALL ORD. S&P SENSEX $: 91.33 TSh 20.06
HANG SENG NIKKEI 225 5,845.63 SSE COMP. 29,199.54 €: 103.77 USh 31.26
17,985.77 3,045.19 10,975.72 4,819.32 21,784.26 8,905.35 24,832.08 18,332.30 -24.20
-2.48 -13.96 -5.72 3,247.43 -262.73 £: 140.85 SAR 7.83
-44.08 -26.22 5.17 47.20 67.51 25.07
Market Activity
LAST WEEK PREVIOUS WEEK
HE SAID
MARKET CAP IN SH BN 2,457.36 2,400.61
TOTAL SHARES TRADED 105,512,200 154,742,800
EQUITY TURNOVER IN SH 4,243,728,237 4,006,079,625 “With an eye made quiet
BONDS TURNOVER 6,175,312,500 6,730,000,000 by the power of harmony, www.businessdailyafrica.com
TOTAL DEALS (BONDS) 60 82
TOTAL DEALS (EQUITY) 10,456 9,635
and the deep power of
NSE 20 SHARE INDEX 5,465.90 5,340.08 joy, we see into the life of
NSE ALL SHARE INDEX 176.00 171.94
things.”
PINEBRIDGE INDEX 888.09 869.75
FTSE NSE KENYA 15 INDEX 229.81 226.45 Download the NMG PLAY app on Google - William Wordsworth
FTSE NSE KENYA 25 INDEX 231.00 227.80 Play and scan this QR code with your English Poet
FTSE NSE KENYA BOND INDEX 92.69 92.72 smart phone for pictures, videos and (1770–1850)
FTSE ASEA PAN AFRICAN INDEX 1,249.35 1,236.65 more stories

Feb 23rd 2015

Uploaded by

Copyright:

Available Formats

Feb 23rd 2015

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Feb 23rd 2015

Uploaded by

Copyright:

Available Formats

Radar Screen Ideas & Debate Life

Billionai≥es pump big money COUNTY BUSINESS

into fast-g≥owing milk ma≥ket

becomes the Billionaire investors are queuing to pump big

Helb e≥ects new hu≥dle fo≥ UP IN FLAMES

Kenyan graduates who got govern-

DON’T MISS PAGES 27-31

Orascom 20 What is making news this week TUESDAYS - CONSUMER

Futu≥e of sola≥ lies in pay-as-you-go investments

Helb wants jobseeke≥s to be sc≥eened fo≥ loan clea≥ance

ECONOMY & POLITICS

Cement and steel Electricity cost comparison

cut ≥etail p≥ices

KAM ≥ules out fu≥the≥

The Kenya Association of

ECONOMY & POLITICS

Team picked to set One-stop bo≥de≥

voting in 2017 poll

Contractors have completed and

ECONOMY & POLITICS

Union wa≥ns of c≥isis as mo≥e docto≥s ≥esign Public school

clea≥ cases backlog

Dividend d≥ought Radisson Blu

INCOME Weaker results linked to competition A German has been appointed to

Telkom denies deal with Ugandans in Sh3.6bn suit

Unive≥sity of Eldo≥et VC says most staﬀ f≥om Rift Valley

House calls fo≥

CORPORATE NEWS GLOBAL

Supe≥ma≥ket chains vie to

unlock Kenya ≥etail ma≥ket

MPs want pa≥t of Sh1bn village polytechnics cash

Kiliﬁ cites cont≥act b≥each in suspension of ≥evenue collecto≥

Nye≥i hay ﬁ≥m posts Sh70m WHOLESALE RETAIL

loss as he≥de≥s invade fa≥ms

BY ALLAN ODHIAMBO County governments are set to

Investo≥s th≥eaten to ≥elocate ove≥ ≥ising insecu≥ity

IDEAS & DEBATE

Like Schiphol Ai≥po≥t, JKIA too can

EDITORIAL & OPINION

Published by the Nation Media Group, Kimathi Street, Nairobi

Flawed CCTV su≥veillance

EDITORIAL & OPINION

Putin’s agg≥ession must be met with bold leade≥ship Tax compliance,

the ≥ising debt

Utalii deserves more funding from government

NEWS INDEPTH NEWS INDEPTH

Top TV stock-picke≥ leads

onslaught of class action

suits against acquisitions

NEWS INDEPTH NEWS INDEPTH

Top TV stock-picke≥ leads

onslaught of class action

suits against acquisitions

Tanzanian wa≥ship that inspi≥ed N’DJAMENA

Families panic as last US bank cut ties with Somalia

MONEY & MARKETS

NSE inches towa≥d Co-op pushes

Co-operative Bank has reviewed its

Cent≥al bank backs cheap oil impo≥ts to sho≥e up shilling