Kasneb Newsline Issue 2 2016 PDF

KASNEB
KASNEB NEWSLINE
The Professional Journal of KASNEB Issue No. 2, April - June 2016
EDUCATIVE INFORMATIVE ENTERTAINING
TOPICS EMERGING ISSUES IN PORTFOLIO

ARBITRAGE THEORIES
LEADERSHIP COMPANIES ACT
SELF-ESTEEM
KASNEB
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KASNEB Newsline
CONTENTS Issue No.2, April - June 2016
KASNEB
Editor Honoraris
Pius M. Nduatih
Editorial Team
Staff members of KASNEB
3 Emerging issues in human capital 17 Portfolio analysis for strategic managers
Circulation Office
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P.O. Box 41362 - 00100
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E-mail: [email protected]
Website: www.kasneb.or.ke
KASNEB Newsline is the professional students

24 Arbitrage theories 33 Leadership qualities journal of KASNEB.
The views expressed in this journal are those of the

respective authors and do not necessarily reflect
those of KASNEB.
The Editor welcomes contributions from readers

especially students and trainers in accountancy, finance,
management, administration, ICT and cognate
subjects.
The Editor reserves the right to edit articles for the

purposes of clarity and brevity.
Trainers and students are free to photocopy

37 Companies Act, 2015 43 Self-esteem materials contained in this journal for purposes
X
of learning without seeking prior consent from
KASNEB.
E EMPTION
Reproduction is allowed without charge as
long as prior consent is sought and the source
acknowledged.
46 55 POLICY Correspondence should be addressed to:
The Editor
KASNEB Newsline
Marketing and Corporate Affairs Unit
P.O. Box 41362 - 00100, Nairobi
E-mail: [email protected]
KASNEB is ISO 9001:2008 certified

68 Pictorial 73 Prize winners
CONTRIBUTORS TO THIS ISSUE
Raymond Kiambati Kellen Kiambati Charles O. Owuor Joseph G. Muthama Samuel

KASNEB M. Karanja
NEWSLINE, Issue No. 2, April Isaac T. Maina1
- June 2016
From the CEO’s desk
G
lobalisation can be viewed as the integration of business activities across
geographical and organisational boundaries. Various factors have been
cited as catalysts for globalisation, key among them being advances in
technology and formation of economic trading blocks.
The impact of globalisation can be witnessed across many spheres, from consumers,
small and medium sized business entities to multinational corporations and
governments. The focus of human capital management has also been dynamically
transformed in the face of globalisation. Gone are the days when a workforce would
exclusively comprise of unicultured employees with a common domicile. It is not
uncommon today for organisations to engage employees from diverse backgrounds.
Further, buoyed by technology, employees are able to keep track of relevant global
Editor Honoraris
Pius M. Nduatih trends which inform their perception of the working environment, among other areas.
The above trends reflect just a tip of the monumental impact of globalisaton on
human capital management. Taking a cue from these developments, we feature a lead
article on managing globalisation and diversity in the workplace. The article explores
the pertinent issues surrounding human capital management in the global arena,
including the associated challenges. The writer further investigates the concept of
workforce diversity and its link with globalisation, concluding with a strong defense
of the belief that effective management is both an ethical and a business imperative.
The second article dwells on the role of product portfolio analysis in strategic
management, with specific focus on creating a competitive edge. The writer provides
insight on the various models of product portfolio analysis, including the Boston
Consulting Group (BCG) Growth Share matrix, the General Electric (GE) matrix and
Porter’s Five Forces model.
We have also featured other articles of interest to our wide readership, including on
arbitrage theory, the new Companies Act, 2015 and on matters of self esteem. In
addition, we have featured the Revised Exemption Policy 2016 among other updates
of relevance to students and other readers.
Welcome and enjoy your reading.
2 KASNEB NEWSLINE, Issue No. 2, April - June 2016

MANAGING GL BALISATION
AND DIVERSITY IN THE WORKPLACE
Emerging issues in human capital
RAYMOND KIAMBATI, Management Consultant
GLOBALISATION
The real wealth of a nation is its people. And
the purpose of development is to create an
enabling environment for people to enjoy
long, healthy and creative lives. This simple
but powerful truth is too often forgotten in
the pursuit of material and financial wealth.
Introduction
Involves movement of goods, people, capital, knowledge
G
lobalisation is compelling
organisations to rethink their
The system of interaction among Globalisation is linked to four major
future strategies. It is now widely
the countries of the world in order aspects:
recognised that transformation is a
to develop the global economy.
pre-requisite to their survival and growth. • Trade
Globalisation refers to the integration
Business organisations, especially public • Capital movements
of economics and societies all over
enterprises are experiencing winds of • Movement of people
the world. Globalisation involves
change. For the human capital (HC) function, • Spread of knowledge
technological, economic, political
there would not be a more exciting and
challenging opportunity than managing the
and cultural exchanges made Drivers of globalisation
possible largely by advances in
complexities of change and transformation.
communication, transportation and Driving factors of globalisation can be
HC today is playing a lead role along with
infrastructure. divided into four groups:
business functions in creating the necessary
momentum and internal capabilities. • Market Drivers
History of globalisation • Convergence of per capita income
What is globalisation? Globalisation is not just a recent
• Convergence of lifestyles
• Organisations behaviour as global
phenomenon. Some analysts have
customers.
Globalisation can be viewed as: argued that the world economy was
just as globalised 100 years ago as
• The integration of business activities
it is today. Yet the term has been
across geographical and organisational
used since the 1980’s, reflecting
boundaries.
technological advances that have
• The capacity to treat the world as
made it easier and quicker to
one market while dealing with many
complete international transactions,
culturally diverse merchants.
both trade and financial flows. The
• The process by which markets expand
most striking aspect of this has been
to include competitors and productive
the integration of financial markets
inputs without regard to national
made possible by modern electronic
boundaries.
communication.
KASNEB NEWSLINE, Issue No. 2, April - June 2016 3

HUMAN CAPITAL
Cost drivers
• Push for economies of scale
• Advances in transportation
• Emergence of newly
industrialised countries with
productive capability and low
labour costs.
Competitive drivers
• Growth of global networks
making countries The reason why there is no desk where you
have always sat is because we’ve outsourced
interdependent. your job to China
• Rise of new competitors
intent on becoming global
competitors. • The e-enablement of many HC Workplace flexibility is expected
• Increased formation of global processes; to be on the rise as the future
strategic alliances. • Greater sophistication in the workplace, the ‘virtual office’ is
HC information technology and characterised by creative and
Government drivers
new structures for international flexible work arrangements. As more
• Reduction on tariffs and other HC functions; employees work offsite - up to two
trade barriers. • Greater competition for thirds of an organisation in the 21st
• Privatisation of industry in talented staff at all levels of the century – there will be an increase
many parts of the world. organisation; in emphasis on performance and
• Creation of trading blocks such • More protracted and strategic results as opposed to the number
as the European Union. talent pipelines. of hours worked. In addition,
off-site employees can expect to
Significance of In particular, there has been a
attend fewer meetings. Specified
globalisation to human very strong marketing, corporate
work will become much more
capital management communication and IT influence on
collaborative and management will
the HC function. The HC function
spend nearly all its time managing
Globalisation has elevated is realigning itself in response
cross-functional work teams who
the impor tance of human to this process of cross-function
enjoy a lot of autonomy. In essence,
capitalmanagement (HCM) in globalisation (building new alliances
there will be a movement, a trend
organisations. These changes have with these functions), creating new
towards a decentralised model of HC.
led to the notion of the HC system activity streams and new roles and
as a strategic asset. Many of the skills required of the HC function.
HC managers will have to
arguments about processes of accommodate employees in
globalisation within the HC function The role of human capital their virtual work locations and
rest on the assumption that there managers in a changing find ways to manage corporate
has and continues to be longitudinal environment culture, socialisation and employee
change in the conduct of HC. In the orientation. In order to obtain and
intervening seven years a wide range Issues facing HC are expected to maintain a competent workforce,
of contextual changes have led to change dramatically in the next they must act as organisational
significant globalisation of activity, decades. Thus, HC professionals performance experts and shape
including: must play special roles in dealing employees behaviour without face
with these changes and develop to face meetings.
• The transfer of work abroad,
specific competencies to support
either to outsourced providers
these roles.
or on a global in-sourcing basis;

HUMAN CAPITAL
Another expected change in HC

is the ‘Global Business’ concept in
world trade, now a major growth
during the last years and the
growth of international businesses,
especially among small firms.
Organisations rely more and more
on an organisation’s HC specialists
as the facilitators of work across
borders and among different
cultures. Therefore, they must be
knowledgeable of other cultures,
languages and business practices.
They will be required to develop
and manage an international
workforce, maintain written and The “Global Business” concept will require HC specialists to manage an international workforce
unwritten corporate polices for
transportability to other cultures,
keep top management informed of employees from other cultures, Organisations must take into
the costs of not paying attention to HC managers will either have to account cultural differences
the transnational issues and provide learn new languages or else they that shape managerial attitudes
their services to a variety of locations will certainly have to have foreign when developing multinational
world-wide. speakers on their staff. But in order management programs. For
to facilitate communication among example, British managers
Concerning the recruitment in the people coming from a wide range value individual achievement
above mentioned ‘global business’ of language backgrounds, in most and autonomy, whereas French
it will be important to determine multinationals, it is preferred to managers appreciate competent
which strategy will be adopted by speak English. supervision, fringe benefits, security
the management. and comfortable conditions,
However, when we talk about while Indian managers give more
Globalisation will impact HC globalisation and culture, then importance on their culture and
managers by requiring new skills how does this relation influence tradition.
such as language capabilities. businesses and HC professionals’
For instance, in order to recruit attitudes? HC managers must therefore be
familiar with and understand
other cultural norms to promote
organisation diversit y. An
organisation that recognises and
promotes cultural diversity will
benefit because it will be employing
the market that it serves. With
increasing globalisation and
competition within the market, a
diverse workforce is conducive to
attracting and retaining a strong
client base. While competing in an
international market, employees
from diverse national backgrounds
In future, off-site employees will become a normal thing provide language skills and

HUMAN CAPITAL
Training and development is another

area. In the IT industry, training takes
on a new connotation. It is not just
about identifying training needs
and giving the required training.
It is foreseeing and anticipating
the requirements and developing
suitable training so that the
employees are well-equipped to
handle the challenges.
Another major challenge is how

we are able to incorporate all the
sub-systems in HC and help them
understanding of other cultures. HC and the willingness to modify job in achieving the ultimate goal –
professionals will also be responsible structure, job classification and the exceptional performance. People
for providing cultural sensitivity organisational structure as often have to be groomed to get in tune
training for the organisations and as quickly as necessary are with the performance culture.
employees and for managers important elements in a successful Creating an environment that
tHCoughout the entire organisation. recruitment and retention strategy stimulates the creation of knowledge
for IT professionals. This challenge of and its sustenance throughout the
Challenges faced by a managing expectations and change organisation is big challenge. No
human capital manager puts constant pressure on the HC longer can the HC department carry
professionals. on with its traditional functions.
Unlike the other industries where However, Human Resource
The challenge does not stop with
HC is considered a functional need, Information Systems (HRIS) is to be
recruiting the right person but with
there is a need to view HC as a put in place – to build and sustain
how we are going to manage the
partner or a business enabler. The a performance-driven culture. The
performance of our employees.
constant challenge faced in this role will shift to that of facilitator.
The challenge would be to create
area is to align HC to business. The HC will have to involve the whole
a performance culture where
five R’s therefore, assume utmost organisation in this process and act
opportunities are provided for
significance in HC strategy. The HC as a counselor and facilitator and
enhanced performance and where
team needs to get in right from that is the most gigantic challenge
giving out optimum performance
the stage of defining the business the HC of any organisation faces.
becomes a way of life.
strategy to Resourcing, Recruiting
the right talent, Retaining the talent,
Retraining and Restructuring.
RESOURCING
However, if we see the scenario of
HC in IT companies, we find that
flexibility appears to be the key RESTRUCTURING
RECRUITING
for success and survival as IT has THE 5 R’S OF
become such a dynamic field due HUMAN CAPITAL
to the constant developments MANAGEMENT
in the area of technology and
changing customer requirements.
Topping all these reasons is the RETRAINING RETAINING
trend of globalisation, which tries
the HC test of endurance. The ability

HUMAN CAPITAL
Competencies of a human
capital manager
In order to effectively deal with

all the changes/challenges, HC
professionals must develop
competencies that will allow them
to carry out their roles. These
competencies include:
• Flexibility
• Team work
HC professionals will be required to effective and competitive. They need
• Communication
produce quantifiable results that to respond to the demands of global
• Decisiveness
prove that their department is competitiveness by becoming more
• Leadership
delivering specified outcomes based familiar with language skills, cultural
• Strategic planning
on the objectives and goals set forth awareness and diversity promotion.
• Network building
by the organisation. Additionally, HC professionals
• Client service orientation
must be committed to continuous
• Organisational awareness In addition to delivering specific learning, being familiar with cutting
• Self confidence m e a s u ra b l e d e ve l o p m e nt s, edge communication.
• Sharing of expertise managers will also need to know
• Global and cultural what contributed to the results If HC managers won’t pay enough
understanding declared. This may mean that HC attention to their changing role,
• Multiple language professionals will be required to serious consequences could result,
competencies be familiar with and administer including the deterioration or even
In addition to increasing and employee survey and provide for perhaps the elimination of the HC
sustaining technological skills accurate data compilation and department.
relating to communication regression analysis.
developments, HC professionals may Conclusion
also be required to increase their As a result of the increase in
numerical and data compilations technology, innovation and
Research has shown that the
skills. As increasing demands merge globalisation over the last 20 years,
HC function in international
to provide specific measurable results HC professionals around the world
organisations has to meet a series
that prove effectiveness in their area, are forced to be more efficient,
of challenges. Three key conclusions
about the role of HC professionals
working in the field of international
recruitment selec tion and
assessment can be drawn:
• The added value of the HC

function in an international
firm lies in its ability to manage
the delicate balance between
globally coordinated systems
and sensitivity to local needs,
including cultural differences,
in a way that align with both
business needs and senior
management philosophy.

HUMAN CAPITAL
• There now appears to be a with line managers. They will need background, education, experience,
distinction to be made between to prove that their initiatives and physical appearance, capabilities/
international HCM and global programs are result-oriented, disabilities, geographic origin, family
HCM. providing specific measurable results status and any other characteristic
• In this transition, the old in terms of business competitiveness that is used to distinguish between
functional divides between that contribute positively to the people. In fact, anything that can
international recruitment, bottom-line of the organisation. affect workplace relationships and
international management They will be required to stay achievements.
development and international current with leading edge as more
reward management have and more organisations are faced Diversity means dissimilarities –
become increasingly weak. with the demands of globalisation differences – among people.
and strategic alliances with other
Over the last 20 years, the workplace Diversity embraces a wide range
organisations around the world.
has changed in more ways than one of characteristics unique to each
could have ever imagined, resulting individual. The primary categories of
from the increase in technology, DIVERSITY diversity are genetic characteristics
innovation and globalisation. The that affect a person’s self image
next decade will bring even greater Definitions: and socialisation and over which
change, impacting all facets of the the individual has relatively little
workplace, including major changes According to the Oxford Advanced
influence.
for the HC department and HC Learners’ Dictionary, diversity means
managers. In order to respond to a range of many people or things
that are very different from each
Current issues of diversity
the demands of globalisation, HC
other; the quality or fact of including
posing challenges and
managers will require new skills and
a range of many people or things.
opportunities in the
competencies relating to language
workforce
and culture, technology capabilities
According to the Chartered
to facilitate overseas communication,
Management Institute, the concept Diversity raises important ethical
methods to measure and quantify
of diversity encompasses any issues and social responsibility
effectiveness and evaluate strategies
sort of difference between two or issues and it is a critical issue for
and return on investment. Evidently,
more people. These differences organisations and if not handled
these new skills and competencies
may exist in terms of age, gender, well can bring an organisation to its
will result in an emerging new role
race, ethnicity, religion, sexual knees, especially in our increasingly
for HC managers, requiring them
orientation, socio-economic global environment. There are
to be strategic business partners,
supportive of the overall corporate
strategy.
Gender
The future role of HC professionals

Age
will change from a less administrative
role to more of a strategic role. Racial and ethnic
HC managers will continually minorities in the country Other
be required to prove their Religious affiliation
Expectations and values
effectiveness and their existence. WORKFORCE
Immigrants Lifestyle
They will be expected to understand DIVERSITY Skill level
international business practices and Education level
promote cultural diversity within Physically and mentally Economic class
disabled people Workstyle
the organisation. They will need to Function and /or position
understand the core business of the within the company
organisation and become partners

HUMAN CAPITAL
Employers that are able to overcome

resistance to diversity may also be
in a better position to handle other
types of change. This is because,
since companies are pursuing
growth strategies, they need
employees who are flexible in their
SIT Y
thinking and diversity may foster
I V E R such flexibility.
D As firms reach out to a broader

customer base, they need employees
who understand particular customer
preferences and a company with say
twenty different languages may have
competitive advantage for catering
to an increasingly diverse customer
base.
Workforce diversity enables generation of diversified and higher quality ideas beneficial to an organisation
Research has shown that workforce
diversity makes strategic sense.
several reasons why diversity is such high quality day care has made it This is because different opinions
a pressing concern and issue both in easier for women to help raise a provided by culturally diverse
the popular press and for managers family and also begin a productive groups were judged to be of a
and organisations. career. higher quality than those produced
by homogeneous groups.
Diversity creates certain advantages Diversity-friendly strategies can have
to the organisation and poses certain a significant impact on end results as Diversity promotes implementation
challenges in the workforce. long as they are considered socially of affirmative action that advocates
responsible and earning favourable for the rights of minorities and
women to be elevated to top
Advantages of diversity returns on products and services
provided to customers. corporate positions.
Effective management of diversity

can improve organisational
effectiveness. When managers Harnessing the power of diversity: Leverage critical opposites
effectively manage diversity, they
not only encourage other managers DIVERSITY is a specialised term describing a workplace that includes:
1. People from various backgrounds and cultures, and/or
to treat diverse members of an
2. Diverse businesses
organisation fairly and justly but also
realise that diversity is an important
Benefits of leveraged diversity
organisational capitalthat can help • Inspires innovation
an organisation gain a competitive • Enhances creativity
• Brings different frames of How to leverage diversity
advantage.
reference to a problem • Involve everyone
• Facilitate cross-pollination of ideas
According to Invancevich 2003, • Create cross-functional teams
changing needs, looks and age of the
workforce result in more concern for
child care, elderly care and training
in understanding diversity. However,

HUMAN CAPITAL
Challenges posed by a diverse

Influences
workforce processing of
social information
Diverse individuals continue to experience
unfair treatment in the workplace as a Society’s beliefs
about the traits GENDER
result of tHCee (3) major diverse workforce
of females and SCHEMA Influences self-
challenges. These are:
males esteem (only
• Factors influenced by managerial behaviour or
perception attitudes consistent
• Overt discrimination such as glass with gender schema
are acceptable)
ceiling
• Sexual harassment created in a diverse
cultural workforce.
Valian refers to such inaccurate characteristics of particular groups of
1. Factors influenced by managerial
preconceived notions of men and people. Managers who allow stereotypes
perception
women as gender schemas. Gender to influence their perceptions assume
schemas are preconceived beliefs erroneously that a person possesses a whole
According to Jones et al (2003) perception is
of ideas about the nature of men host of characteristics simply because the
the process tHCough which people select,
and women, their trait, attitudes, person happens to be of a certain gender,
organise and interpret what they see, hear,
behaviours and preferences. career, colour, lesbian/gay and so on (Mullins
touch, smell, and taste to give meaning and
2007 and Jones et al). For example African
order to the world around them. Most people
Managers and all organisational American men are often stereotyped as
tend to think that the decisions managers
members’ perceptions about one good athletes or a career woman to be a
make in organisations and the actions
another are also affected by their secretary.
they take are the result of some objective
past experience and acquired
determination of the issues involved and the
knowledge about people, events, (c) Bias
surrounding situation.
and situations - information that is
organised into pre-existing schemas. Inaccurate perceptions leading to unfair
Perception may be grouped into 3 groups:
treatment of diverse members of an
• Schemas (b) Stereotype - perception as a organisation can be due to biases. Biases
• Stereotype determinant of unfair treatment are systematic tendencies to use information
• Bias about others in ways that result in inaccurate
Stereotype is simplistic and often perceptions. There are several types of biases
(a) Schemas
inaccurate beliefs about the typical like:
A schema is an abstract knowledge structure
(i) Similar-to-me effect which is a tendency
that is stored in memory and makes possible
to perceive others who are similar to
the interpretation and organisation of
information about a person, event or I am a boy, so I I am a girl, ourselves more positively than we
must act like a boy so I must act perceive people who are different
situation. They can either be functional or
like a girl summed up as “birds of a feather
dysfunctional. They are functional if they
flock together”. This can lead to unfair
are relatively accurate depictions of the true
treatment of diverse employees simply
nature of a person or situation thus helping
because they are different from the
people make sense of the world around
managers who are perceiving them,
PINK
them.
BLUE
evaluating them, and making decisions

that affect their future in the organi-
They are dysfunctional if they cause
sation.
managers and members to perceive people
(ii) The social status effect is the tendency
and situation inaccurately and assume certain
to perceive individuals with high social
things that are not true. Psychologist Virginia

HUMAN CAPITAL
status more positively than those with

low social status. For example, a high
status person may be perceived as
smarter and more believable, capable,
knowledgeable, and responsible than a
low-status person, even in the absence
of objective information about either
person.
(iii) The salience effect is the tendency to
focus attention on individuals who are
conspicuously different from us. When
Inaccurate schemas and perceptual biases can lead to discrimination
people are salient, they often feel as
though all eyes are watching them
and this perception is not too far off but also illegal. For example, more 3. Forms of Sexual harassment
the mark. Such salient individuals are and more companies are facing
more often the object of attention than age discrimination lawsuits filed by There are two basic forms of sexual
others and often a manager may focus employees who believe they were harassment that is:
more attention on them than others, laid off from their jobs due to their • Quid pro quo sexual harassment occurs
for instance, such individuals may be age. when a harasser asks or forces an
perceived to be primarily responsible employee to perform sexual favours in
for outcomes and operations and are Other kinds of diverse employees
exchange for receiving some reward
evaluated more extremely positively may face even greater barriers, for
like promotion, receive a raise, obtain
or negatively. A salient individual may example, hindrances from climbing
some other work-related opportunity,
receive excessive praise for a good job the corporate ladder by the minority
mainly for employees to keep his or
but when s/he misses a deadline, s/he groups like women and the disabled.
her job or avoid receiving negative
is excessively chastised. This is termed as glass ceiling. Glass
consequences such as demotion or
ceiling alludes to the invisible
dismissal, for example, “sleep with me
2. Overt discrimination barriers that prevent minorities and
honey, or you are fired”.
women from being promoted to
Another challenge in the work force is overt • Hostile work environment sexual
top corporate positions. Others are
discrimination. Inaccurate schemas and harassment is the telling of lewd jokes,
stereotyped to be less educated or to
perceptual biases can lead well meaning displaying pornography, making
perform only certain technical jobs
managers and organisational members to sexually oriented remarks about
in organisations.
unintentionally discriminate against others someone’s personal appearance and
due to their inaccurate perceptions. other sex-related actions that make
Therefore there is substantial
the work environment unpleasant. It
evidence that diverse individuals
Overt discrimination is knowingly and occurs when organisational members
continue to experience unfair
willingly denying diverse individuals are faced with an intimidating, hostile,
treatment in the workplace as a
access to opportunities and outcomes in or offensive work environment because
result of biases, stereotypes and
an organisation. This is not only unethical of their sex.
overt discrimination. In one study,
equally qualified men were more Steps that managers can take to eradicate
than twice as likely as women to be sexual harassment include development and
called for a job interview and more communication of sexual harassment policy
than five times as likely to receive endorsed by top management, use of fair
a job offer. On the other hand, complaint procedures, prompt corrective
women are believed to accept lower action when harassment occurs, and sexual
pay than men as explained by the harassment training and education.
continuing gap in pay between men
and women.

HUMAN CAPITAL
related initiatives and top managers and differing perspectives of diverse

need to develop the correct ethical managers, subordinates, coworkers and
values and performance or business- customers. Assessing and evaluating
oriented attitudes that allow them to “the managing diversity program” and
make appropriate use of their human seeing if there is any improvement
Diverse individuals continue to experience unfair capital. in attitude towards diversity and so
treatment in the workplace as a result of biases,
on.
stereotypes and overt discrimination
Providing strong leadership that
takes a strong personal stand on Diversity awareness programs often have
Managing diversity to achieve the need for change and becoming the following goals:
Productivity in organisations a role model for behaviour required

• Providing organisation members with
for change, that is, appointing
accurate information about diversity.
Managing diversity means taking steps to someone to head efforts to
• Uncovering personal biases and
maximise diversity’s potential advantages improve opportunities for women
stereotypes and beliefs about different
while minimising the potential barriers such and minorities in the company’s
groups.
as prejudice and bias which can undermine workforce.
• Developing an atmosphere in which
the functioning of a diverse workforce. people feel free to share their differing
Effective management of diversity means 2. Strive to increase the accuracy
perspectives and points of view.
much more than hiring diverse employees. of perceptions
• Improving understanding of others
It means learning to appreciate and respond who are different from oneself.
To increase accuracy of perceptions,
appropriately to the needs, attitudes, beliefs,
managers should consciously 4. Increase diversity skills
and values that diverse people bring to an
attempt to open other points of view
organisation and correcting misconceptions
and perspectives and encourage Efforts to increase diversity skills focus on
about why and how different kinds of
their subordinates to do the same improving the way managers and their
employee groups are different from one
and they should not be afraid to subordinates interact with each other
another and finding the most effective way
change their views about a person, and on improving their ability to work
to utilise the skills and talents of diverse
issue, or event, but should encourage with different kinds of people. This means
employees.
their subordinates to be open to being able to communicate with diverse
changing their views in the light of employees as organisational members may
How to manage diversity disconfirming evidence. Managers have different styles of communication,
effectively should strive to avoid making snap and may differ in their language fluency,
judgment about people. Judgement use of words, nonverbal signals or the way
1. Secure top-management commitment should be made only when sufficient they perceive and interpret information.
and relevant information has been Managers and their subordinates must
Top management commitment to diversity gathered. learn to communicate effectively with
is crucial for the success of any diversity- one another if an organisation is to take
3. Increase diversity awareness advantage of the skills and abilities of its
diverse workforce. Education on different
The ability to appreciate diversity ways of communicating is essential and can
requires that people become help members to interpret certain kinds
aware of other perspectives and of comments and can help employees
various attitudes and experiences learn how to resolve misunderstandings.
of others. Many diversity-awareness Organisational members should strive
programs in organisation strive to solve communication difficulties and
to increase managers and misunderstandings as they occur rather than
workers awareness of their own letting problems grow.
attitudes, biases and stereotypes
Your computer is very powerful!

HUMAN CAPITAL
7. Change culture and

management systems
Change the performance appraisal

criteria to measure supervisors based
partly on their success in reducing
intergroup conflicts.
8. Consider the numbers

Language and cultural diversity pause a
major challange to “global businesses.” Looking at the numbers of members
of different minority groups and they should be encouraged to speak up and
5. Encourage flexibility women in various positions, at rectify the situation instead of being muffled.
various levels in the categorisation in
Managers and their subordinates must learn an organisation, can help managers 10. Reward employees for effectively
how to be open to different approaches and with important information about managing diversity
ways of doing things. This means employees potential problems and ways to
must not suppress their personal styles but rectify them. If members of a certain If effective management of diversity is
must be open to and not feel tHCeatened by group are much underrepresented a valued organisational objective, then
different approaches and perspectives and in particular kinds of jobs or units, employees should be rewarded for their
must be patient and flexible to understand managers need to understand why contribution to this objective. For example,
and appreciate diverse perspectives. this is the case and resolve any after settling a major race discrimination
Managers should also be flexible enough problems they might uncover. lawsuit, Coco Cola Company ties managers’
to incorporate the differing needs of diverse pay to their achievement of diversity
employees. Diversity suggests that people 9. Empower employees to management.
of certain religious callings might need time challenge discriminatory
off for holidays. behaviours, actions and remarks Managers can use multi-pronged approach
to increase diversity awareness and skills
6. Pay close attention to how Zero tolerance for discrimination in their organisations by use of films
organisaitonal members are evaluated should be implemented and and printed materials supplemented by
employees should be empowered to experiential exercise to uncover hidden
Vague performance standards should be challenge discriminatory behaviour biases and stereotypes. At times they can
avoided and whenever possible managers whether the behaviour is directed use a forum for people to learn about and
should rely on objective performance at them or if they witness it being discuss their differing attitudes, values and
indicators or ensure that adequate time and directed at another employee. This experiences which can be a powerful tool
attention are focused on the evaluation of means that if managers or employees for increasing awareness.
employees’ performance and that evaluators witness another organisational
are held accountable for their evaluations. member being unfairly treated, 11. Encourage mentoring of diverse
employees
Am not surprised. Performance Mentoring is a process by which an

by people from your community is
generally poor. I thought you experienced member of an organisation
would be an exception. provides advice and guidance to a less
experienced member and helps the less
experienced member learn how to advance
in the organisation and in his or her career.
A mentor can help to build an employee’s
confidence and make him or her feel
comfortable engaging in unfamiliar work
behaviours.

HUMAN CAPITAL
Central role that managers play in managing diversity There is a strong ethical imperative in many
societies that diverse people receive equal
Managers’ central roles in managing diversity are: opportunities and be treated fairly and justly.
Unfair treatment is illegal.
Specific Role Example
Figurehead Convey that the effective management of diversity is a valued goal and objective
The role of diversity in organisations
Leader Serve as a role model and institute policies and procedures to ensure that diverse Researchers feel that diversity is important
members are treated fairly. due to the following reasons:
Liaison Enable diverse individuals to coordinate their efforts and cooperate with one another. • Demographic changes in the workforce.
Monitor Evaluate the extent to which diverse employees are being treated fairly. Some European countries, for instance,
have very few young people to succeed
Disseminator Inform employees about diversity polices and initiatives and the intolerance of the ageing employees and thus the
discrimination.
need to integrate diversity into their
Spokesperson Support diversity initiatives in the wider community and speak to diverse groups to workforce to close the gap if their
interest them in career opportunities. organisations are to survive.
Entrepreneur Commit resources to develop new ways to effectively manage diversity and eliminate • Programs of affirmative action
biases and discrimination. and positive discrimination means
employers make an extra effort to hire
Disturbance handler Take quick action to correct inequalities and curtail discriminatory behaviour.
and promote those in protected groups
Capitalallocator Allocate resources to support and encourage the effective management of diversity. such as females or minority groups.
Negotiator Work with organisations such as suppliers and groups like labour unions to support and The aim is to voluntarily enhance
encourage the effective management of diversity. employment opportunities for women
and minorities.
Why effective management of diversity is both an ethical and a • Employers need to emphasise external
business imperative recruitment and internal development
of better qualified minority and female
employees.
Principles guiding managers in managing diversity
• Increasing number of women entering
Distributive justice: The principle of distributive justice dictates that the distribution the workforce need to be availed
of pay raises, promotions, job titles, interesting job assignment, office space and management positions.
other organisational resources among members of an organisation should be fair. The • There is need for fair, equitable pay to all
distribution of these outcomes should be based on meaningful contributions that employees of all classes in the diverse
individuals have made to the organisation such as time, effort, education, skills, abilities, workforce.
and performance levels and not irrelevant personal characteristics over which individual According to Ivancevich (2003), there is need
have no control over, such as age, gender or race. This does not mean the members of for diversity in the workforce because:
an organisation receive identical or similar outcomes; rather, it means that members who
• Companies are now restructuring
receive more outcomes than others have made substantially higher or more significant
their firms due to economic crises
contributions to the organisation.
in the global market. Restructuring
Procedural justice: The principle or procedural justice requires that manager use fair means changing reporting and
procedures to determine how to distribute outcome to organisational members. This authority relationships within a firm in
principle applies to typical procedures such as appraising subordinates’ performance, order to conduct business. In addition
deciding who should receive a raise or promotion. It also involves deciding who to lay there is emerging need in firms to
off when an organisation is forced to downsize by carefully appraising a subordinate’s go into downsising. Downsising is
performance, taking into account any environmental obstacle to high performance the laying off of employees. In the
beyond the subordinate’s control such as machine breakdowns and ignoring irrelevant process,colleagues are given new job
personal characteristics such as age or ethnicity (Findings from Jones et al 2008). responsibilities and feeling of trust

HUMAN CAPITAL
and job security are tHCeatened. Equal Need to address diversity

employment opportunity aims to
ensure that anyone regardless of race, Diversity is a top corporate priority to
colour, sex or religion or national origin differentiate firms from competition
has an equal chance for a job based on in response to an increasingly diverse
his or her qualifications. There is also consumer market place.
the needs of contingent workers which
include those not permanent and full The need to address diversity
time but are temporary, part-time or globally is critical “as none of us is
leased workers normally outsourced as strong as all of us” so there is need
and hired to handle extra job tasks to operate geographically in all areas
or workloads. Contingent employees of the world and thus face diversity
are becoming a widespread part of issues.
staffing mix of firms because part time
employees usually receive fewer fringe Work life balance is one of the six Diversity finds expression in many ways
benefits and often have flexible work global workforce challenges being
schedules. addressed. Others are global market
• Need for firms to outsource globally. place, cultural awareness, acceptance talents can damage any firm’s competitive
Outsourcing is the practice of hiring of women and integration of people position.
another firm to complete that which with disabilities, race discrimination
especially in lawsuits, hiring of There is need for HCM to address skill gaps
is most important and must be done
minorities are all now becoming an in order to avoid the consequences of not
efficiently. It is also known as employee
emerging need. having a workforce that can compete in the
leasing. It is meant to improve core
global economy.
business and to reduce risks.
• Differences in abilities of employees: According to Werner and De
Some differences in employees affecting Simone(2006), there is need to Conclusion

HCM programs are due to differences in recruit and develop skilled labour
abilities or skills which can be classified which is important for any company Diversity is the recognition of individual
as mechanical, motor coordination, concerned with competitiveness, differences that people are not
mental or creative. According to productivity and quality. This is to homogeneous and focuses on multiplicity
psychologist some abilities are a result eliminate mismatch between jobs of differences among people, on variety
of genetic factors that are rarely subject since jobs are growing to a number of people as heterogeneous groupings,
to change through training such as of multiple task demands requiring as individual differences are the basis of
finger dexterity and response to time high skills, more education and diversity.
but interpersonal skills and leadership higher levels of languages and
reasoning skills than the current It is aimed at harnessing these differences
are subject to change as they can be
ones. Therefore, a shortage of skilled which will create a productive environment
learnt.
in which everybody feels valued and where
their talents are being fully utilised tHCough
which organisational goals are met. Diversity
recognises and harnesses different individual
skills, talents and special contribution which
are tapped by the organisation to promote
its productivity.
Therefore, there is a strong ethical imperative

in many societies that diverse people receive
equal opportunities and be treated fairly and
justly. Unfair treatment is illegal.
None of us is as strong as all of us together.

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FOR MERGERS AND FOR CLOUD VALUATION OF TQM IN BUSINESS FINANCE ECONOMY REVISED SYLLABUSES
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BEATING
PORTFOLIO ANALYSIS FOR STRATEGIC MANAGERS
COMPETITION
PAUL M. MWANGI (CPA K, B.Com), Lecturer, Brightstar Institute of Business Studies
P
orfolio matrix models are
used for analysing the relative
position of each of an organi-
useful because it indicates the product cash
sation’s businesses in its industry
Real Unit Cost
requirements.
and the relationship among all of
the organisation’s businesses. The
This qualification is explained below:
two popular approaches include;
(a) Boston Consulting Group (BCG) The “Question Mark”: This is a product that
Growth Share Matrix. has not yet achieved a dominant market
position. It is a high user of cash because it
(b) General Electric Multifactor
is in a growth market.
Portfolio Matrix. Cumulative Output
The ‘Star’: This is the product that has
(a) Boston Consulting achieved a high market share and which is
Group (BCG) Growth Thus a company that has the highest
probably more or less self financing in cash
Share Matrix market share is likely to be more
terms.
profitable than its competitors.

Boston Consulting Group developed The ‘Cash Cows’: These are leaders in market
Research has confirmed that market
and popularised a strategy where there is a little additional growth but a
share and profitability are linearly
formulation approach called the lot of stability. These are excellent generators
related. Boston Consulting Group
growth-share matrix. The basic of cash and tend to use little because of the
Approach combined these two
idea underlying this approach is state of the market.
ideas to form a simple 2 x 2 matrix.
that a firm should have a balanced This has effects on a firm’s cash flow. The ‘Dogs’: Have little future and can be
portfolio of businesses. Profits are not always an appropriate a cash drain on the company. They are
indicator of portfolio performance candidates for divestment – Peter Drucker
It is a known fact that we become
– they reflect changes in the liquid described them as “investment in managerial
better at doing things the more we
assets of a company but do not ego”.
do them. This is the phenomenon of
indicate the true scope of future
a learning curve. This is manifested
development.
through labour efficiency, work
specialisation and methods Cash flow on the other hand is a key
Market Share
improvement. These benefits are Star Question Mark

determinant of a company’s ability
what we call the experience effects. to develop its product portfolio. Cash generated xxx Cash generated *
In addition to experience effects, Boston Consulting Group classifies Cash use xxx Cash use ---
growth brings about economies a firm’s products according to their 0 ---
of scale. Boston Consulting Group Cash cows ‘Dog’
cash usage and their cash generation
discovered that costs decline by along the above dimensions (market Cash generated +++ Cash generated *
up to 30% every time the output growth and relative market share). Cash use --- Cash use -
doubles. Thus the greater the Market share is useful because it is ++ 0
volume the lower your unit cost. an indicator of the product ability
to generate cash. Market growth is Relative market share

PORTFOLIO ANALYSIS
Strategic alternatives
High
• Build market share appropriate for Invest for Invest selectively
growth for growth ?
Industry/Market Attractiveness
question marks that must increase their
market share.
• Hold market share is appropriate for Invest selectively Harvesting
Medium ? Strategy
cash cows with strong share position. for growth
Cash generated by cash cows used to
support other businesses. Harvesting Divest
• Harvest - involves milking as much Low ?
short-term cash as possible from cash
cows that are not promising and dogs
and problem child. Strong Average Weak
• Divest - involves selling or liquidating Competitive Position
a business because resources invested
in it can be invested more profitably in
• Investment factors identified 5 forces that influence the state of
other businesses.
• Technological factors competition in the industry. These forces
• Other pest factors were presented as:
General Electric (GE) Matrix
Determinants of business strength (a) Threat of new entrants
GE and McKinsey jointly developed a
• Product quality A new entry brings extra capacity and more
multi-factor approach along the fundamental
• Distribution competitors such as easy to open a new
ideas advanced by Boston Consulting Group.
• Brand reputation restaurant but difficult to enter the aircraft
They used industry/ market attractiveness.
• Production capability industry.
• Management skills
Determinants of industry/market
Barriers to entry include: high capital
attractiveness Porter’s 5 forces
requirements, economies of scale, patents
• Market factors such as size, growth and licensing requirements, raw materials,
This was adopted from Porter’s
• Competitors access to distribution channels, product
competitive strategy. Michael Porter
differentials, reputation requirements and
switching cost of customers (time, money,
convenience).
Low business strength Medium business strength High business strength (b) Threat of substitute products/
High
High market attractiveness High market attractiveness High market attractiveness services
Build selectively Invest and build Leader: protect
A substitute product is a product offered
by another industry that has a potential to
Low business strength Medium business strength High business strength
Medium
satisfy the same customer need. Substitutes

Medium mkt. attractiveness Medium mkt. attractiveness Medium mkt. attractiveness
Harvest Select and manage Select and build place a limit on prices and or profits that a
Market attractiveness
firm/industry can earn.
(c) Bargaining power of customers

Low business strength Medium business strength High business strength
Low
Low mkt. attractiveness Low mkt. attractiveness Low mkt. attractiveness

Where customers have a strong growing
Divest Manage and earn Protect and refocus
bargaining power, they want low prices,
better quality or service and will set
Low Medium High competitors against one another at the
expense of the sellers’ profits. Buyers’
Business strength/Competitive strength

PORTFOLIO ANALYSIS
its industry. The firm has a broad scope

Suppliers
and serves many industry segments and
Threat of may even operate in related industries. The
new entrants
sources of cost advantage are varied and
depends on the structure of the industry.
Bargaining They may include:
power of
suppliers Industry • The pursuit of economies of scale
Suppliers competitors Buyers • Preference access/support to the
Intensity of Bargaining raw material, for instance, in security
rivalry power of
buyers services a cost advantage requires
extremely low overheads, plentiful
sources of low cost labour and efficient
Threat of
substitutes training procedures because of the
high turnover.
Substitutes • Relocating to cheaper areas.
The strategic logic of cost leadership usually

requires that a firm be the cost leader and
bargaining power grows when they become Generic strategies not simply one of the several firms vying for
more organised, where the production
this position. When there is more than one
represents a fraction of buyer’s cost, when Michael Porter developed the aspiring cost leader, rivalry among them is
products are undifferentiated, when the concept of generic strategies in intense because every point of the market
buyer’s switching costs are low and buyers 1985. He focuses attention on a share is viewed as critical to success.
are price sensitive because of low profits. specific type of generic strategies
(ii) Differentiation strategy
(d) Bargaining power of suppliers i.e. general classification used to
organise a large number of possible
A firm seeks to be unique in its industry
The suppliers tend to be powerful when they individual strategies. He suggested
along some dimensions that are widely
are concentrated and organised. They are that all competitive strategies can be
valued by its customers. It selects one
be able to advertise a better price, reduce reduced to three basic ones:
or more attributes that many buyers in
quantity supplied – suppliers are also
(i) Cost leadership strategy the industry perceive as important. It is
powerful where there are few substitutes,
(ii) Differentiation strategy rewarded for its uniqueness with a premium
when the supplied product is important
(iii) Focus strategy price. This means differentiation is peculiar
to suppliers’ products, when the cost of
to each industry, that is:
switching a supplier are high and when (i) Cost leadership
supply can downstream – best defence is to • It can be based on the product itself.
build relationship with, and win suppliers In this strategy, a firm sets out to • It can be based on the delivery systems
and so on. become the low cost producer in by which it is sold.
(e) The rivalry amongst current
COST
competitors in the industry
A segment is unattractive if it contains many

strong or aggressive competitors and if it is
in a declining industry. It is more unattractive
if fixed costs are high, exit barriers are high. LEADERSHIP
These conditions will lead to price wars, FOCUS
advertising battles new product introduction
and will make it expensive to compete. Benefits - Costs = Net Value Differentiation strategy

PORTFOLIO ANALYSIS
The cost variant of the focus strategy

ADVANTAGE depends on the difference between a
focuser target segment and other segments
TARGET SCOPE in the industry.
Low cost Product uniqueness
The target segment must have buyers with
unusual needs or special needs or else the
product and delivery systems that best serve
Broad
Cost leadership strategy Differentiation strategy the target segment must differ from those of
(Industry wide)
the other industry segments. The cost focuser
exploits differences in cost behaviour in
some segments while differentiation focuser
exploits the special needs of buyers in certain
Narrow Focus strategy Focus strategy
segments. Broadly targeting competitors
(Market segment) (Low cost) (Differentiation)
may be under performing in meeting the
needs of a particular segment, which opens
the possibility of differentiation focus. On
the other hand, broadly targeted compet-
• It can be based on the marketing in its target segment. The difference itors may be over performing in meeting the
approach used to communicate with between overall and focus differen- needs of segments, which means that they
the target market, among other factors. tiation is that, the focus differenti- are incurring higher than necessary cost in
ation looks for segments with special that segment. An opportunity focus may
In construction equipment, caterpillars
needs and meets them better than be present in just meeting the needs such
tractors have been differentiated using
its competitors. segments have and more.
product durability, spare parts availability,
good service, excellent dealer network and
so on.
(iii) Focus strategy
This is the third generic strategy which is

quite different from the other two strategies
because it depends on the choice of a narrow
competitive scope within an industry. A firm
using this strategy selects a segment or a
group of segments in the industry and tailors
its strategy to servicing with the exclusion
of others, by optimising its strategy for the
target market. The focuser seeks to achieve
a competitive advantage in its target
segment even though it does not possess a
competitive advantage in the overall market.
The focus strategy has two variants.
• The cost focus

• The differentiation focus
Under the cost focus, the firm seeks a cost

advantage in its target segment while in
differentiation focus, it seeks differentiation

PORTFOLIO ANALYSIS
(a) Offensive Warfare Strategies

(i) Frontal attack
This is a direct and head on attack on

competitors. It is generally considered
the riskiest and least advised of strategies.
The challengers attack the opponent’s by
attacking the opponents strengths rather
than weaknesses. This can be done by
matching the opponent’s product quality,
price, advertising and distribution strategy.
The opponent must not be in a superior
position.
(ii) Flanking attack
Attack the enemy where they are weak or

have no presence at all. This is good for
firms with the fewer resources. The attacks
can be directed against an opponent along
two strategic dimensions; geographic and
segmental dimensions.
Stuck in the middle strategy the competitors with sustained (iii) Encirclement attack
competitive advantage will quickly
Involves an attack to capture a wide share
eliminate that advantage.
Cost leadership of the opponent’s territory by making an
A firm that is stuck in the middle will offer that the market cannot refuse such as
earn a profit only if it is fortunate improving on the opponent quality, price
enough to have competitors that are advertising. To be effective the encirclement
also stuck in the middle. Becoming attack must be complete and swift. It is
stuck in the middle is often a aimed at diluting the defender’s ability to
manifestation of firms unwillingness retaliate.
Stuck in the to make a choice about how to (iv) Bypass attack

middle compete. It tries for a competitive
The key is to avoid competition by moving
advantage through every means and
Differentiation Focus to the uncontested fields. Strategies possible
achieves none.
under bypass attack include; diversifying
into unrelated product, diversifying into
A firm that engages in each generic strategy Offensive and defensive new geographic areas or developing new
but fails to achieve any of them is said to be strategies technology for existing products.
stuck in the middle. Such a firm poses no
competitive advantage and usually records Sustainable competitive advantage (v) Guerrilla attack
below average performance. exists in a customer’s mind and is Less ambitious in scope. It involves making
easily lost as a result of changes small attacks in different locations whilst
A firm that is stuck in the middle will in market place and way of doing remaining mobile. The aim is to destabilise
compete at a disadvantage because the business. Competitive advantage by-products rather than blows. Involves use
cost leader, differentiator or focuser will depends on the markets and existing of both conventional and unconventional
be better placed to compete effectively in competitors. To have a sustainable methods like; price cuts, advertising, legal
any segment. If a firm that is stuck in the competitive advantage, an actions.
middle is likely to discover a profitable buyer, organisation needs to have offensive
and defensive strategies.

PORTFOLIO ANALYSIS
TYPES OF ATTACK STRATEGIES (4) Bypass attack
Types of attack strategy Marketing examples (2) Flank attack
1. Frontal attack Head on competition usually undertaken by largest

competitors who have muscle (resources) to engage in
prolonged promotion or price wars.
2. Flank attack Attack the competition on its weakest spots (example
(1) Frontal attack
distribution) and take advantage of this weakness to grab
market share. ATTACKER DEFENDER
3. Encirclement attack Attack the competition on multiple fronts (using more than (3) Encirclement attack
one aspect of the marketing mix strategy).
4. Bypass attack Plan to enter markets not currently considered by
competition; create “blue ocean opportunities” - fight the
next war.
5. Guerrilla attack Used by smaller competitors to attack by surprise to
(3) Guerrilla attack
upset strategies of larger rivals; smaller competitor then
withdraws to attack another day.
(b) Defensive Warfare Strategies to extend its domain over new some post to serve as defensive corners
territories that can serve as future to protect a weak front. Used to occupy a
Only a market leader should play defense centres of defence and offence. position of potential future importance in
in order to hold on to its existing markets. This can be done through market order to deny that position to the opponent.
broadening or market diversification.
(i) Position defense (v) Counter offensive defence
(iii) Pre-emptive defence
This is defense of a current position by Attacking where one is being attacked.
consolidating resources within existing areas. This attack is the best form of This requires immediate response to any
It is the most basic idea of defense. It is weak defence. It involves actually competitors entering a segment. When a
in that while defending the current position, launching an offensive against an market leader is attacked he has to respond
others are planning future strategies. The enemy before he starts an offensive by a counter attack.
product they are defending might not be in against the firm. Pre-emptive
(vi) Contraction defence
the market in future. defence is launched where an attack
is anticipated. The firm plans to concentrate on a few
(ii) Mobile defence
areas and strategically withdraws from
(iv) Flank position defence
Mobility prevents the attacker’s chances of some areas. This involves giving up the
localising defense by accumulating its forces The market leader should not only weaker territories and re-assigning forces to
for a decisive battle. The leader attempts guard its territory but should have stronger territories. This is done when a firm
realises that it cannot defend all its territorial
profitability.
(2) Flank
Conclusion
(3) Preemptive (1) Position Gaining a competitive advantage is key to a
ATTACKER (4) Counteroffensive (6) Contraction
firm’s survival and growth. The competitive
DEFENDER advantage adopted by a firm should be
guided by market circumstances and
the relative strength of the competitors.
Market players should however note that a
(5) Mobile competitive strategy is not static but should
be adapted to changing market trends.

ARBITRAGE THEORIE$ AND
FORECASTING EXCHANGE RATES
Charles Okeya Owuor, Lecturer, Achievers School of Professionals, Nakuru
Suggested solution
Bank X Y
(Buying) Bid price $ /NZ $ $0.33 $0.32
(Selling ) Ask price $/NZ$ $0.335 $0.325
Step 1
Buy NZ$ at Bank Y @ $ 0.325/NZ$
$ 1,000,000
= = NZ$ 3,076,923.08
$0.325/NZ$
Step 2
Arbitrage and parity to its buying price; undertaking Sell NZ$ to buy $ @ Bank X $ $0.33/NZ$
theories such transactions yields profits. In = NZ$ 3,076,923.08 * $0.33/NZ$
addition, locational arbitrage leads = $ 1,015,384.62
What is arbitrage? to the realignment of currency Step 3

exchange rates as well.
Determine the profit
Arbitrage is the practice of taking = $1,015,384.62 - $1,000,000
advantage of a state of imbalance Locational arbitrage can occur when = $15,384.62
between two or more markets. A the spot rate of a given currency
Illustration two
person who engages in arbitrage is varies among locations. Specifically,
called an arbitrageur. The arbitrageur the ask rate at one location must be
The following quotes of exchange
exploits the imbalance that is present lower than the bid rate at another
rates are available:
in the market by making a couple of location. The disparity in rates can
matching deals in different markets, occur since information is not always Bank A B
with the profit being the difference immediately available to all banks. (Buying) Bid price NZ$/$ 0.2612 0.2388
If a disparity does exist, locational (Selling ) Ask price NZ$/$ 0.2844 0.2501
between the market prices.
arbitrage is possible, as it occurs, the
spot rates among locations should Required
Arbitrage can be defined as
capitalising on market discrepancies become realigned.
Given this information, is locational
in the prices quoted in the foreign
Illustration one arbitrage possible? If so, explain the
exchange markets by simultaneous
steps involved in locational arbitrage
buying and selling. It can also
Assume that the bid rate of a New and compute the profit from this
involve simultaneous lending and
Zealand dollar (NZ $) is US dollar arbitrage if you had NZ$100,000 to use.
borrowing in different currencies to
($) 0.33 while the ask rate is $
take advantage of the higher interest Suggested solution
0.335 at bank X. Assume also that
rates. It involves no risk and no
the bid rate of the New Zealand Step 1
capital of your own. It is an activity
dollar is $ 0.32 while the ask rate is
that takes advantages of pricing Buy $ at Bank B @ 0.2501 NZ$/$
$0.325 at bank Y. Given this
mistakes in one or more markets. $ 100,000
information, what would be your gain = = 399,840.06
There are three kinds of arbitrage. 0.2501
if you use $ 1,000,000 and executed
Step 2
locational arbitrage? That is, how
Locational arbitrage Sell $ to buy at Bank A @ $ 0.2612 NZ$/$
much will you end up with over and
= 399,840.06 * 0.2612
Locational arbitrage takes place above the $1,000,000 you started
= 104,438.22
when a particular currency can be with?
sold at a higher price compared

ARBITRAGE THEORIES
Step 3 Suggested solution then involves interest arbitrage to

Determine Profit take advantage of higher overseas
= $ 104,438.22 – 100,000 (i) FF per DM =2/0.2 = 10 FF/DM interest rates and covering the foreign
= $ 4,438.22 investment position by selling forward
(ii) DM the maturity value of the investment.
Triangular Arbitrage
Illustration 4
Foreign exchange quotations are
typically expressed in US $ regardless ? Assume the following information:
DM
$2/
of the country where the quotation
Amount to invest - $ 1,000,000
is provided. Cross exchange rates are Current spot rate of DM - $2/DM
used to determine the relationship 90 days forward rate of DM - $2.1/DM
US ($) $ 0.2/ff FF
between two non-dollar currencies. 90 days interest rate in the USA - 2%
If a quoted actual or market cross 90 days interest rate in country X - 4%
$ 2/ DM (DM currency)
exchange rate differs from the Cross exchange rate (?) = = 10 FF/DM
$ 0.2/FF
appropriate theoretical or should-be Required
rate, triangular arbitrage becomes Step 1:
feasible. Convert $ 10000 to DM @ $2 /DM What is the rate of return for investing in
$ 10000 country X?
= DM 5000
A typical triangular arbitrage strategy $ 2/DM
involves three trades: Suggested solution
Step 2:
(i) Exchanging the initial currency Assume Home country is USA
Convert DM to FF @ 11FF/DM
for a second;
= DM 5,000 * 11ff/DM 2.1 - 2
(i) Trading second currency for a = FF 55,000 4% - 2% ≠ * 100
third; 2
Step 3:
(i) and the third currency for the 2% ≠ 5%
initial (first currency). Convert FF to $ @ $0.2/FF
= 55,000FF * $0.2/ff Step 1:
Illustration 3 = $ 11,000 Convert/sell $ 1,000,000 to DM @ $2/DM
Step 4: $ 1,000,000
Assume two hypothetical currencies, = DM 500,000
$ 2/DM
Compute the profit
DM and FF have the following
= $11,000- $10,000 Step 2:
exchange ratse: = $1,000
Invest in a money market instrument in country X
DM value = $ 2 per DM (Treasury Bill) @ 4%
FF value = $ 0.20 per FF Covered Interest Arbitrage (CIA)
=DM 500,000 * 1.04
= DM 520,000
Required The opportunity to engage in
(i) Determine the appropriate/ covered interest arbitrage arises Step 3:
theoretical cross exchange of DM when the interest rate difference Get the matured investment after 90 days @ $ 2.1
with respect to FF. between the home interest rate and DM
(ii) Suppose a bank quotes cross = DM 520000 * 2.1/DM
foreign interest rate is not off-set by = $1,092,000
exchange of DM with respect the forward premium or discount of
to FF = 11 FF/DM, determine the foreign currency in the forward Step 4:
US $ amounts you will receive in market. Covered interest arbitrage Compute the profit
exchange for FF or you sell FF and = $ 1,092,000 - $ 1,000,000 = $ 92,000
involves converting the home
buy US $ if you have $10,000 to currency to the foreign currency, Step 5:
invest. investing in foreign currency and Compute the rate of return
covering against exchange rate risk
by selling forward the maturity value $ 92,000
= * 100
of the investment thereby locking-in $ 1,000,000
a rate. Covered interest arbitrage
= 9.2%

ARBITRAGE THEORIES
FORECASTING EXCHANGE Factors affecting exchange be stable. In so doing, the demand for the
RATES rates currency of more political stable countries
will appreciate as compared to those of
politically unstable countries.
Reasons for foreign investment Export/imports
The decision to invest capital in a If a country exports more goods, Inflation rate differential (Purchasing
project abroad should be based the importing country will have a Power Parity Theorem)
upon considerations of expected higher demand for the currency
Parity between the purchasing powers
returns and risk (this is the same of the exporting country so as to
of two currencies establishes the rate of
like investing locally). However, meet its obligations. The value
exchange between the two currencies.
these factors are different in different of the currency of the exporting
When inflation rate differential between
countries. They include: country will therefore appreciate.
two countries changes the exchange rate
The opposite is the case if a country
• Risk considerations also adjusts to correspond to the relative
imports more goods than exports.
• Return considerations purchasing powers of the currencies.
• Taxation
Political stability The decrease in expected inflation lowers the
Foreign exchange domestic nominal interest rate, and increase
Unsuitable political climate will make
expected dollar appreciation by more than
Foreign exchange refers to currencies the citizens lose confidence in their
the fall in the domestic interest rate.
and other instruments of payment currency. They would therefore wish
denominated in other countries to invest or just buy the currency of
This can be illustrated below.
currencies. the other countries they deem to
I (h) – I (f) *100
% E (f) =
I(f) + 1
Where % E(f ) is the percentage change in

the direct quote
I (h) is the inflation rate in the home market.
I (f) is the inflation rate in the foreign market.
Illustration 5
Assume that the direct quote between the $

and the £ is £1 = $ 1.5 and that the inflation rate
in UK is 10% and that in the US is 6%
Required
Compute the % change in the direct quote and

determine the new exchange rate.
Suggested solution
I (h) – I (f)
% E(f) = * 100
I(f) + I
0.06-0.10
= * 100
0.10+1
= -0.0364*100 = -3.64%

ARBITRAGE THEORIES
New exchange rate

= $ 1.5 (100-3.64%)
= $ 1.5 (1-0.0364)
= $ 1.5 (0.9636)
= $ 1.4454
Therefore new exchange rate is
1£ = $ 1.4454
Illustration 6
The following are the expected interest rate

and inflation rate in Canada and Britain over
the next six months.
The international Fisher Effect can Suggested solution
Country Interest Inflation rate
be explained as follows: % E(f) = I (h) – I (f) 100
Canada 9% 4% *
% E(f) = 1(h) – 1(f) * 100 1+I(f)
Britain 7% 2%
1+I(f) = 0.07 – 0.02 100
*
Where % E(f) = is the % change in direct quote 1+0.02
The current exchange rate between the
I(h) is the interest rate in the home market
Canadian dollar (C$) and the British pound I(f) is the interest rate in the foreign market = 0.05 100
*
(£) is 2C$ = 1£ 1.02
Illustration 7 = 4.902%
Required New exchange rate

Assume that the direct quote is country
Determine the 6 months forward exchange X is DM 1 =$0.5 while the general = 0.008437 (1+0.04902)
rate between the two currencies using the PPP interest in US is 6% and general interest
approach. rate incountry X is 3%. = 0.08851
Suggested Solution Suggested solution NB

I + I(f) = f(D/F) 0.06 – 0.03 * 100 = 0.02912*100
I+ I (h) s(D/F) 1+0.03 = 2.91 The IRP theory can be used to predict
or determine the forward rate using the
New exchange rate
= 1 + 0.02 = F(D/F) following formular
1+ 0.04 2C$/£
= 0.5 (1+0.0291)
= 0.5*1.02910 = 0.5145 I + I(f) = f(D/F)
Interest Rate Parity (IRP Theory ) or = 0.51455 I+ I (h) s(D/F)
International Fisher Effect Illustration 8 Where:
r(f) = interest rate in the foreign country F
This theory states that differences in interest f(h) = interest rate in the home country h
Assume that the spot exchange rate
rate in different markets can cause a flow F(D/F )= Forward rate between the home country and
of the Japanese Yen is $ 0.008437. The foreign country
of funds from markets with low interest
one year interest rate is 7% in the US S(D/F) = Spot rate between the home country and the
rate to markets with high interest rates. The foreign country
and 2% in Japan. What will the spot
interest parity condition states that returns
rate be in one year according to IFE?
on domestic and foreign deposits will be
equal.
PARITY CONDITIONS
Exchange rate forecasts
The key assumption for this condition is Purchasing power parity
Unbiased forward rate
capital mobility. The return on domestic
deposit is equal to the domestic interest rate.
Forward rate INTERNATIONAL Differences in
The return on foreign deposits is equal to the FISHER EFFECT inflation rates
premium or discount
foreign interest rate minus the expected rate
of appreciation of the domestic currency. Interest rate parity
Fisher effect
Differences in interest rates

ARBITRAGE THEORIES
Balance of payment CURRENT ACCOUNT CAPITAL ACCOUNT FINANCIAL ACCOUNT

Balance goods (visibles)
The term balance of payment refers to Export goods minus import goods
a system of government accounts that
catalogues the flow of economic transactions Balance services (invisibles) Balance financial
Export Services - Import services Balance capital
between the residents of one country and Foreigners buy Kenyan assets
Immigrants bring cash/assets
the residents of other countries. It is therefore or put money in Kenyan Banks
Balance income into Kenya - emigrants take
- Kenyans buy foreign assets or
the fund flow statement. Continuous deficit Income earned by Kenya firms abroad - cash/assets out of Kenya
put money in foreign banks
in the balance of payment is expected to income earned by overseas firms in Kenya
depress the value of a currency because Balance current transfers
Gifts/aid received - gifts and aid paid
such deficit would increase the supply of
that currency relative to its demand.
exchange to the country.

Government policies
• It enables the government to
meet its developmental plans
A national government may through its
whose budgets are set in local
Central Bank intervene in the foreign
currencies but may be financed
exchange market, buying and selling its
by foreign loans and aids.
currency as it sees fit to support its currency
• It may keep inflation under
relative to others. In order to promote cheap
control because the prices of
export, a country may maintain a policy of
imported goods will remain
undervaluing its currency.
stable as long as the exchange
rate is fixed. This is particularly
Types of exchange rates true for imported inflation. This rate may discourage investment by
• Long term investment plans foreign investors as they are uncertain about
Fixed Exchange rate can be worked out with the return to be earned on investment made
substantial accuracy and may under floating rates of exchange. It may also
This is that rate at which the value of a discourage export trade and may increase
minimise budget deficits with
currency remains stable vis-à-vis other inflation rates.
their negative effects.
currencies for a long period of time. These
rates of exchange are fixed by the Central Floating exchange rate Efficient market hypothesis
Bank through the process of pegging the
currency concerned, for example, if the When the rate of exchange of The efficient market hypothesis says that
currency is pegged to a Dollar, then its value a currency is floating it is left to no one should pay for currency forecasting
remains fixed to the value of the dollar and move in response to different services if the foreign exchange markets are
will move with movement in the value of forces (especially the balance of perfectly efficient. To be perfectly efficient
the dollar. payments). It is left to be determined the following assumptions have to be met:
by the forces of demand and supply
• Spot rates reflect all current information
Advantages of using fixed exchange rates of foreign currencies of a given
and adjust quickly to new information.
currency.
• It stabilises the export proceeds and
therefore it may stimulate exports for EXCHANGE RATE SYSTEMS
the period in which it is fixed.
• Foreign investors gauge the return FLOATING (FLEXIBLE)
FIXED EXCHANGE MANAGED
on their investments in local currency RATE SYSTEM EXCHANGE RATE SYSTEM EXCHANGE RATE SYSTEM
vis-à-vis their own currencies. A fixed
exchange rate will assure these investors
Government Exchange rate generally
of a stable return on their investment intervention to Supply and demand
determine the allowed to float but
maintain a fixed governements intervene to
which may induce foreign investors, exchange rate exchange rate
avoid sudden fluctuations
thus increasing the inflow of foreign

ARBITRAGE THEORIES
Exchange rates reflect all available Why multinationals in international transactions. Thus, exchange
information if: forecasts exchange rates? rate forecasting is very important to
• There are many well informed investors evaluate the benefits and risk attached to
with amply funds for arbitrage One of the goals of studying the the international business environment.
opportunities. behaviour of exchange rates is to be Forecasting will depend on the type of
• There are no barriers to movement of able to forecast exchange rates. An exchange rate regimes, like fixed rate system
funds from one country to another. assessment of the future exchange versus free-floating regime; it will also
• Transaction costs are negligible. rates is required for several decisions depend on the period of future forecast like
• It is impossible for any market analysis of the MNCs. Future exchange rates short term horizon versus long term horizon.
to consistently ‘beat the market’. will affect all critical characteristics of
• Because information that is useful for There are four approaches to forecasting
the firm such as costs and revenue.
currency forecasting tends to arrive foreign exchange rates:
randomly, exchange rates follow Various operations of MNCs use
a random walk, and this makes it exchange rate projections including: Forecasting using the balance of payment
impossible to beat the market. approach
• Hedging currency positions
• All currencies are fairly priced.
from exchange rate risk. Under a fixed exchange rate system the
These results in no undervalued currencies • Short term and long term government bears the responsibility to
and therefore no investors can earn unusually financing and investing ensure a BOP near zero. If the sum of
large profits in the foreign exchange market. decisions the current and capital accounts does
• Capital budgeting decisions not approximate zero, the government
Financial theorists define three forms of the • Earnings assessment is expected to intervene in the foreign
market efficiency hypothesis: • To assess foreign subsidiary exchange market by buying or selling official
• Weak form efficiency suggests that all earnings foreign exchange reserves. If the sum of the
information contained in past exchange • To buy or sell a product in a first two accounts is greater than zero, a
rate movements is fully reflected in foreign currency. surplus demand for the domestic currency
currency exchange rates, thereby exists in the world.
making information about recent Forecasting techniques
trends in a currency’s price ineffective To preserve the fixed exchange rate, the
for forecasting. Exchange rates forecasts are government must then intervene in the
• Semi-strong form efficiency suggests necessary to evaluate the foreign foreign exchange market and sell domestic
that current exchange rates reflect all denominated cash flows involved currency for foreign currencies or gold so
publicly available information, thereby
making such information useless for
forecasting.
Forecasting in practice
• Strong form efficiency suggests that
Foreign currency
current exchange rates reflect all per unit of domestic
pertinent information, whether publicly currency Technical or random
events may drive the
or privately available, thereby making it exchange rate from the Fundamental
so that even insiders are unable to earn long-term path equilibrium
path
abnormal returns.
• Statistical tests of the efficient market
hypothesis have not provided much
support, at least for the strong form.
Short-term forces may induce
Most research supports the weak form, noise - short-term volatility
while there are mixed results regarding around the long-term path
the semi-strong form.
Time

ARBITRAGE THEORIES
cross border equity investment in both

securities and foreign direct investment.
• Capital market liquidity is particularly
IMPORTS EXPORTS important to foreign institutional
investors. Cross-border investors are not
only interested in the case of buying
Imports BALANCE OF Exports
PAYMENTS assets, but also in the ease of selling
greater than greater than
exports imports those assets quickly for fair market
Currency Currency
leaves the returns to value if desired.
country the country • A country’s economic and social
infrastructure is an important indicator
Reduction Equilibrium Increased of that country’s ability to survive
of domestic re-established circulation of
consumption money unexpected external shocks and to
prosper in a rapidly changing world
Money Exports Imports Money economic environment.
supply increase increase supply • Political safety is exceptionally
diminishes increases
important to both foreign portfolio and
Prices
direct investors. The outlook for political
Prices
fall rise safety is usually reflected in political risk
Recession Inflation premiums for a country’s securities and
for purpose of evaluating foreign direct
Domestic Domestic investment in that country.
causes causes
• The credibility of corporate governance
practices is important to cross border
portfolio investors. A firm’s poor
as to bring the BOP back near zero. If the domestic currency and will be forced
corporate governance practices can
sum of the current and capital account is to devalue. For fixed exchange rate
reduce foreign investors’ influence
negative, an excess supply of the domestic countries, then business managers
and cause subsequent loss of the firm’s
currency exists in the world markets. Then use balance of payments statistics to
focus on shareholder wealth objective.
the government must intervene by buying help forecast devaluation or revalu-
• Contagion is defined as the spread of a
the domestic currency with its reserves of ation of the official exchange rate.
crisis in one country to its neighbouring
foreign currencies and gold. It is obviously
countries and other countries that
important for a government to maintain Asset market approach to
have similar characteristics – at least
significant foreign exchange reserve forecasting
in the eyes of cross-border investors.
balances to allow it to intervene effectively.
Contagion can cause an ‘innocent’
If the country runs out of foreign exchange The asset market approach assumes
country to experience capital flight with
reserves, it will be unable to buy back its that whether foreigners are willing
resulting depreciation of its currency.
to hold claims in monetary form
depends on an extensive set of
Balance of Payments Approach investment considerations or drivers.

Asset Market Approach
These drivers include the following:
The balance of payments is the second most utilised The asset market approach argues that exchange rates are
theoretical approach in exchange rate determination: • Relative real interest rates
determined by the supply and demand for a wide variety of
• The basic approach argues that the equilibrium exchange are a major consideration for
financial assets:
rate is found when currency flows match up current and investors in foreign bonds
• Shifts in the supply and demand for financial assets alter
financial account activities. and short term money market
exchange rates.
• This framework has wide appeal as BOP transaction data instruments.
• Changes in monetary and fiscal policy alter expected
is readily available and widely reported. • Prospects for economic
returns and perceived relative risks of financial assets,
• Critics may argue that this theory does not take into growth and profitability are
which in turn alter exchange rates.
account stocks of money or financial assets. in important determinant of

ARBITRAGE THEORIES
fundamental approach is based on a wide

range of data regarded as fundamental
economic variables that determine exchange
rates. These fundamental economic variables
are taken from economic models. Usually
included variables are GNP, consumption,
trade balance, inflation rates, interest rates,
unemployment, productivity indexes, and
so on. in general, the fundamental forecast
is based on structural (equilibrium) models.
These structural models are then modified
to take into account statistical character-
istics of the data and the experience of
the forecasters. It is a mixture of art and
science. Often regression analysis is used
in fundamental forecasting. In a regression
set-up, a dependent variable (effect) is
forecast using an independent variable
• Speculation can both cause a foreign it. This is because their actions in the (cause); constant and slope coefficients for
exchange crisis and make an existing market due to the model’s forecast the straight line equation of the estimate of
crisis worse. will cause the currency values to the dependent variable are obtained. From
move as suggested by the model the regression equation, one can forecast the
Technical forecasting immediately instead of in the future. dependent variable for a given time period.
Technical analysts, traditionally referred to

Also, MNCs often prefer long term Steps involved in fundamental forecasting
as chartists, focus on price and volume data
forecasts. Technical forecasting is
to determine past trends that are expected • Selection of Model (for illustration, PPP
typically conducted for short time
to continue into the future. The single most model) used to generate the forecasts.
horizons.
important element of technical analysis • Collection of St, Xt ( in the case of PPP,
is that future exchange rates are based exchange rates and CPI data needed)
Fundamental forecasting
on the current exchange rate. Exchange • Estimation of model, if needed
rate movements similar to equity price (regression, other methods)
Fundamental forecasting is based
movements, can be subdivided into three • Generation of forecasts based on
on underlying relationships between
periods estimated model. Assumptions about
the currency’s value and one or
Xt + T may be needed.
• Day to day movement which is more economic factors like relative
• Evaluation, forecasts are evaluated. If
seemingly random interest rates, inflation differentials,
forecasts are very bad, model must be
• Short term movements extending from trade deficits, budget deficits, real
changed.
several days to trends lasting several GDP, money supply and so on. The
months.
• Long term movements which are Fundamental forecasting
characterised by up and down long
• Fundamental forecasting is based on the fundamental relationships between
term trends.
economic variables and exchange rates.
Limitations of using technical forecasting • A forecast may arise simply from a subjective assessment of the factors that affect
to predict exchange rates exchange rates.
• A forecast may be based on quantitative measurements (with the aid of regression
Even if a technical forecasting model turns models and sensitivity analysis) too.
out to be valuable, it will no longer be
valuable once other market participants use

INDISPENSABLE QUALITIES
OF A BUSINESS L ER
Joseph G. Muthama, Lecturer and management consultant
A
ccording to Roger E. Dickson, organisational objectives and goals.
author of a Christian book Exemplary leadership plays a pivotal
Finding the Priceless Pearl, role in determining organisational
pearls are as the result of years of success. Conversely, poor leadership
pain and struggle. It all begins when can very easily lead to the downfall
a small foreign particle becomes of an organisation.
lodged in the muscle of an oyster
shell. Over many years, the oyster B e l o w, we highlight the
seeks to weaken the pain by coating indispensable qualities that are the
the foreign particle with nacre, the hallmark of a great leader.
substance out of which the oyster
shell is made. After years of coating, Persistence
appointed. They are later vetted by
a beautiful pearl is formed. Once the
both the Parliamentary Committee Modern organisations operate in
awesome pearl is formed, it takes
on Appointments and the members turbulent environments and success
great struggle on the part of those
of National Assembly. This kind of can be elusive. Today’s leader must
who search for pearls to discover
selection or appointment rigour is not be a person who lets go easily.
those oyster shells that actually
what is required to ensure selected Because of the many stumbling
habour the pearls.
leaders have what it takes to lead an blocks on the road to success, a
organisation. leader must of necessity have the
The process of pearl formation can
be likened to the rigorous hiring or nerves of steel we call persistence.
Vincent Lombardi once said “The
recruitment exercise organisations Persistence helps the leader to
quality of a person’s life is in direct
go through or must put candidates face the problems or challenges
proportion to their commitment to
for managerial position through head on. John Calvin Coolidge,
excellence, regardless of their chosen
to ensure they get the best in Jr, the 30th US President once
field of endeavours.“ As a matter of
terms of leadership qualities. These quipped: “Nothing in
fact, organisational management
recruitment exercises may cost the the world can
requires a lot of commitment,
organisation a lot of money but it
patience, sacrifice, tolerance,
pays of in the end if they manage to
consultation and dedication
hire the right persons to lead.
in order to realise the
Cabinet and Principal Secretaries,

for instance, are subjected to a
rigorous recruitment and selection
exercise before being

LEADERSHIP
TAKING THE
PATH OF LEAST
RESISTANCE
IS THE MOST
DIRECT ROUTE TO
FAILURE
take the place of persistence. Talents our leaders continue to abuse the pays dividends in the end.
will not; nothing is more common tenets of Chapter 6 with impunity. Remember character is much easier
than unsuccessful men with talent. Mark Caine says “The first step towards kept than recovered. According to
Genius will not; unrewarded genius is success is taken when you refuse to be the late Bob Marley, a leader of the
almost a proverb. Education will not; a captive of the environment in which reggae band, Bob Marley and the
the world is full of educated derelicts. you first find yourself.” It is of great Wailers, “The greatest of a man is not
Persistence and determination alone importance for a leader to internalise in how much wealth he acquires, but in
are omnipotent.” The slogan “press soundness of moral character and his integrity and ability to affect those
on” has solved and will always solve desist from unethical acts and being around him positively.”
the problems of the human race. immoral. In other words, he must
refuse to compromise his principles Notably, leadership is about
Integrity at all cost in order to protect his influence and, therefore, the need
reputation and/or that of his for a leader to have positive mental
In order for to be competitive and organisation. The need for a leader to attitude cannot be overemphasised.
successful in leadership, a leader be honest, trustworthy, impartial and Article 73(2a) under Chapter 6 of the
must have both personal and morally upright cannot be gainsaid. Constitution of Kenya 2010 states
professional integrity. This integrity Chinua Achebe, a renowned literary that “the principles of leadership
must be impeccable and beyond icon once said “One of the truest and integrity include objectivity and
reproach. Because of the importance test of integrity is its blunt refusal impartiality in decision making, and
integrity carries in leadership, the to be compromised.” Research has in ensuring that decisions are not
Kenyan Constitution has in fact shown that those organisations that influenced by nepotism, favouritism,
dedicated a whole chapter (Chapter uphold an organisational culture of other improper motives or corrupt
6) to leadership and integrity. It is integrity have increased bottom-line practices.”
unfortunate, however, that many of performance. Upholding integrity
Warren Buffet succinctly put it thus
“In looking for people to hire, look for
INTEGRITY three qualities; integrity, intelligence
and energy. And if they don’t have the
IS CHOOSING first one, the other two will kill you.”
YOUR ACTIONS
Accountability
BASED ON
VALUES RATHER A good leader is accountable to
THAN PERSONAL his/her followers. This means that

he is responsible for his decisions
GAIN or actions and is freely willing to

LEADERSHIP
ACCOUNTABILITY
IS THE GLUE THAT TIES
COMMITMENT TO THE
RESULT
Bob Proctor
explain them when need arises. for a leader to be dynamic. Victor White who enunciated “The only
Accountability goes a long way to Hugo, a French poet, novelist and sense that is common in the long
protect the character of a leader. The playwright once said “An invasion of run is the sense of change and we
late Myles Munroe said “The greatest armies can be resisted, but not an idea all instinctively avoid it.” Remember
investment in leadership is not in whose time has come.” your decisions as a leader have
things but in people; creating leaders consequences. These consequences
is the ultimate purpose of leadership” We live in a world of rapid more often than not determine
As much as you would like to be technological changes and your organisation’s achievements.
effective in your leadership, you advancement. The business world has Dwelling in the past and living on
must be accountable to the people not been spared by these changes. the past experience is both futile and
you lead. This calls for an organisational dangerous for a leader. “Dinosaurs”
leader to be technologically savvy and anachronistic leaders have no
Regrettably, leaders who still do in order to remain competitive and room in modern management and
not want to be accountable to their relevant. It behooves leaders to be leadership practices.
employees/followers still exist. They innovative and creative so as to
still hold on to the old-fashioned way quickly adapt. Apple co-founder
Commitment
of leadership that believes “the boss Steve Jobs concisely explains
is always correct.” “innovation distinguishes between
A leader must be irrevocably
a leader and a follower.” This means
committed to his duties in order
In this day and age, being that a leader should be flexible,
to be successful in the current
accountable to your subordinates decisive, dependable, enthusiastic
business landscape. Albert Einstein,
does not necessarily mean that you and persuasive when dealing with
a theoretical physicist once said
are being demeaned. Consensus customers as well as their followers
“Only one who devotes himself to a
building is for the betterment or subordinates. This can be
cause with his whole strength and soul
of the overall wellbeing of the encapsulated in a quote from E.B
organisation. Being accountable
includes financial prudence and
probity. In essence, a leader should THE HIERARCHY OF COMMITMENT
not oppose employees when putting
a spoke in the organisational wheel.
This undoubtedly makes employees
Level of commitment
feel part and parcel of the team.

I will do it!
Commitment I will lead others to do it...
I have to do it!
Dynamism Compliance
I can do it when I am told to...
In today’s business arena, change is Complain Why should I do it?

If nobody says so...
inevitable. Competition has become
Non-committal/Condemn I will not do it!
the order of the day, hence the need
I will influence others...

LEADERSHIP
Commitment to the mission and

vision of the organisation is the only
remedy for making things happen in
the organisation and the leader is at
the heart of this happening.
Knowledgeable
As the saying goes, knowledge

is power; a leader ought to be
COMMITMENT knowledgeable about various
disciplines in order to be competent
People follow those who know more than them. Leaders
EITHER YOU DO and effective. Dr. Samuel Johnson must constantly read in order to keep ahead of the followers.
OR YOU DON’T, said “Integrity without knowledge is
THERE IS NO IN-BETWEEN weak and useless, and knowledge
without integrity is dangerous and as keep abreast of developments in the
dreadful.” Hence, a leader should business environment in order to be ahead
have both integrity and knowledge. of the game. No wonder someone said that
“ when a leader stops to read, he stops being
can be a true master. For this reason
It is said that information is power in a leader.”
mastery demands all of a person.”
today’s world. Hence, it is imperative
More often than not and unbeknown for a leader to have a wealth of Conclusion
to them, leaders are judged by knowledge on various disciplines
their followers on the way they like mathematics, psychology, In a nutshell, organisation leadership plays
are committed to organisational sociology, managerial economics, a key role in determining an organisation’s
goals and objectives. Lack of accounting, computing, knowledge performance and success. Transformation
loyalty and low attitude towards management and marketing, among of organisations is bound to happen when
the organisation goals could have others. This will go a long way to the leaders posses the forgoing qualities.
disastrous and devastating effects assist him when it comes to planning, “Non-growing organisations are as a result
to entire organisation performance. organising, directing and controlling of non-growing leaders,” demystified John
Somebody said, “There are five types the affairs of the organisation. Alvin C. Maxwell.
of leaders; those who make things Toffler said “The illiterate of the 21st
happen; those who think they make century will not be those who cannot
things happens; those who watch read and write, but those who cannot
things happen, those who wonder learn, unlearn and relearn.” Thus a
what happened and those that did not leader should practice continuous
know that anything ever happened.” learning and improvement as well
COMMITMENT
MEANS STAYING LOYAL
TO WHAT YOU SAID
YOU WERE GOING
TO DO LONG AFTER
THE MOOD YOU
SAID IT IN
HAS LEFT
YOU.

Companies Act, 2015
Changes that make registration and operation of a business easier
Samuel M. Karanja, Principal, Adex School, Kakamega
Introduction It makes businesses easy to • A company’s objects are now not deemed
register and operate to restrict its capacity; a company may
I
n tune with the wishes of many transact only subject to its own limitations.
entrepreneurs, Kenya has finally joined The introduction of sole membership • The members of a private company may
the league of countries that have made of private companies; entrepreneurs pass written resolutions circulated in hard
far-reaching changes to their Companies will no longer be required to copy or electronic form.
Acts. The Companies Act 2015 (the Act) is incorporate a company with at least • A company may notify shareholders of
among a suite of new laws intended to two member s(as required under the notices and announcements through its
streamline business in Kenya, by making it previous Companies Act (Cap 486)). website.
easier for entities to establish a presence and This takes into consideration the • Sector-specific model articles of association
operate. The Act takes into consideration, Government’s intention to increase shall be prescribed.
developments in technology and procedure, and facilitate entrepreneurial activity The Act codifies directors’ fiduciary duties, as
to boost the ease of doing business. In in Kenya. This creates a chance for stipulated under common law. These include:
addition, the Act unifies and gives life to incubation of new businesses in duty to exercise reasonable care, skill and
the now generally accepted principles of Kenya. diligence, duty to act within powers and duty
corporate governance as required by the to avoid conflicts of interest in respect of
Capital Markets Authority and the Mwongozo Several provisions that remove accountability and transparency. The following
Code of Governance for State Corporations. previous procedural bureaucracy for provisions have been introduced:-
compliance have also been codified.
Below are some of the changes to the These include:- • Private companies must file financial
Companies Act that entrepreneurs, statements within 9 months of the
• No obligation for a private accounting period with the Registrar of
accountants, managers and other
company to have a company Companies (RoC).
stakeholders need to know.
secretary, where its paid-up • Resolutions, written memorandum and
capital, does not exceed Kshs. agreements affecting the company’s consti-
5 million. tution are to be filed at the Companies
• Private companies are allowed Registry within 14 days of their passing.
to have only one director, while • Directors’ fixed term service contracts
public companies must have at in excess of two (2) years will require
least two directors. shareholders’ approval.
• The minimum age of a director • The requirements for valid execution of
is now 18 years, down from a document by a company have been
the previous 21 years, with no changed to signing by one director in the
prescribed maximum age. presence of an attesting witness.

COMPANIES ACT
• The Registrar of Companies is to be informed

of changes in a company’s directorship
or directors’ addresses within 14 days of
effecting the change.
• Transfer by the company of a substantial
non-cash asset to director shall only be by
resolution. A non-cash asset is considered
substantial where its value exceeds 10% of
the company’s assets and is more than Kshs
5 million, or one that exceeds Kshs 10 million.
• An application may be made to the Attorney
General or the official receiver for a disquali-
fication order against a director or company
secretary, where he/she is unfit to hold office,
or where the company becomes insolvent.
The duration of such an order is between 2
to 15 years.
• Takeovers and mergers will now be governed
by the Act (once it comes into force), as Sorry sir, the shareholders had not approved the golden parachute
opposed to the previous position, where
takeovers were governed by the Capital
Markets Act (Cap.485A) and the regulations
replaced with legal concepts • A company must have at least one
made thereunder.
such as administration, natural person as a director (all
• The introduction of comprehensive Financial
liquidation and moratorium companies have 6 months to rectify
Reporting requirements in line with Interna-
which are governed by the this).
tional Accounting Best Practice (developed
Insolvency Act 2015. • Companies can buy back shares
after Enron and Parmalat) which includes
from other shareholders.
amongst others setting out the functions, Other issues of concern in the act are: • Kshs. 6.75 million (~$67,500) is the
remuneration terms and extent of liability of
• Memorandum (can be one minimum paid-up share capital for a
Auditors (exemption of liability is proscribed).
page long) & articles are simpler. public company (this will affect some
• Golden parachutes which are common place
• Role of the company secretary land owning companies and large
during the exit and/or ouster from office of
has been clarified. Corporate property developers).
any director, are subject to approval by the
governance has been clarified • Public companies need to know
shareholders.
with penalties for directors who the true owners behind proxies
• Winding up (which was previously governed
and management including are.
and available under the old Companies
for conflict of interest. • Share buy backs are now allowed.
Act 1948) is now repealed as a whole and
• 3 0 % m a x i m u m • All shareholders have rights to
local shareholding by a foreign pre-emption when companies create
company. new shares - (and this can only be from
• It gives minority shareholders profits, not new money).
cour t powers if main • MBO and LBO:’s banks could not
shareholder/management finance acquisitions, but now they
are prejudicial or make bad can. For instance, management can
decisions/transactions on use the assets of the company to
behalf of the company. secure financing to buy it or pay off
• New company is able to do foreign outgoing shareholders - (this
anything including borrow opens another exit opportunity for
unless if it is restricted. investors).
Minimum age for a director is 18 years

Summit Institute of Professionals
Centre of excellenee
FULLY ACCREDITED BY THE MINISTRY OF EDUCATION AND KASNEB
*Highly qualified, experienced and passionate lecturers * Flexible study sessions

*Full syllabus coverage and intesive revision *Free computer package
*Free Internet *Spacious and stocked library *Convenient location
ACCOUNTING COURSES OFFERED

* Accounting Technicians Diploma (ATD)
• Level I, Level II and Level Ill • Fees is payable in fo
uin r stallments.
* Certified Public Accountants (CPA) • Single subjects also offered.
* Certified Secretaries (CS)
* Certified Credit Professionals (CCP) • Examinations Body - KASNEB
• Associate in Procurement and Supply of Kenya (APS-K) Levels I & II

• Certified Procurement and Supply Professional of Kenya (CPSP-K)
• Certified Investment and Financial Analysts (CIFA)
• Early Morning Classes

• Day Classes • Late Evening Classes ,.., 7.45 p.m. - 9.45 p.m.
I y o f s tudies
For more information please contact Visit us at; Union Towers, 3rd fir above Galito's
Director of Studies: Tel: 0720322961 I 0721627388 Mai Avenue & Mama Ngina Street
P. 0. Box 621 - 00300 Nairobi - Kenya Junction (Opp. Hilton Hotel)
www.summitinstitute.ac.ke
o
o
For more information please contact Visit us at; Union Towers, 3rd fir above Galito's
Director of Studies: Tel: 0720322961 I 0721627388 Mai Avenue & Mama Ngina Street
P. 0. Box 621 - 00300 Nairobi - Kenya Junction (Opp. Hilton Hotel)
www.summitinstitute.ac.ke
BECAUSE I know my college is
accredited by KASNEB
I can trust the training
am getting
Before you enroll,

ask if the college
is accredited by KASNEB
Path Institute of Technology and Entrepreneurship

KITENGELA COURSES OFFERED:
KASNEB
• Accounting Technicians Diploma (ATD)
• Certified Public Accountants (CPA) Parts I - III
KASNEB • Certified Secretaries (CS) Sections 1 and 2
• Diploma in Information Communication Technology (DICT)
• Certified Information Communication Technologists (CICT)
KNEC/ICM
• Certificate/ Diploma in Business Management
• Certificate/ Diploma in Sales and Marketing
• Certificate/ Diploma in Supply Chain Management
• Certificate/Diploma in Information Communication Technology
• Certificate/Diploma in Human resources management
• Certificate/Diploma in Financial management
• Certificate/Diploma in Marketing management
• Certificate/Diploma in Business Start-up and Entrepreneurship
• Certificate/Diploma in Community Development and Social Work
PITE
• Certificate in MS Office,
• Certificate in Computerised Accounting,
• Certificate in Web Design,
• Certificate in Computer Programming,
• Entrepreneurship short courses and seminars
• Production skills in soap-making, cosmetics, exercise books, paints
and dyes, animal feeds, cakes, juices, yoghurt e.t.c
• Languages: Kiswahili, French and English
INTERNATIONAL COMPUTER DRIVING LICENCE (ICDL)

ICDL registration every Monday
PATH Institute of Technology and Entrepreneurship
P.O. Box 799 - 00241 Kitengela
Mobile: 0700392770
Email: [email protected] Hostels available at reasonable rates
Website: www.pathinstitute.ac.ke
SELF-ESTEEM
ISAAC T. MAINA (CPA), Lecturer, Excel Institute of Professionals, Thika
A different way to heal your All our efforts of increasing our self-esteem
self-esteem WHAT YOU are futile for in the end, all such efforts lead
only to fear; the fear of losing everything we
THINK OF YOURSELF
T
o say that our self-esteem is low is to have ever gained.
compare it to something higher. But IS MUCH MORE
to be able to attain that higher degree There is a different way to heal
could only mean that there is still something
IMPORTANT THAN
beyond that. How high is high enough? How WHAT PEOPLE The healing of our wounds can no longer
much increase is really necessary? In truth, depend on the external actions we take
it is not an increase in self-esteem that we THINK OF YOU such as working harder, eating healthier
should aim for, but a complete healing of or studying longer hours. The only way to
Are you confident because you are
our wounded sense of self worth. healing is to be healed from within because
beautiful? But what if you mingle
our wounds are not wounds of the body,
with others who are more beautiful
You need to rebuild from the than you? And for how long will you
but of the soul.
ground up stay that way? What happens when Deep in our souls, we feel a great emptiness
you grow old and that beauty fades? and uncertainty. We feel compelled to
Before we could attain true healing, we must
measure up to the standards of other people
first recognise our wounds. Before we could Are you secure with your success?
while at the same time, not being able to
rebuild our sense of worth, we must first What if the business or the reputation
measure up to our own sense of wholeness.
acknowledge how broken it really is. you’ve built suddenly falls? What are
you worth by then? For how long We try to be strong, yet it seems we could
Where is your self-esteem founded? How firm could you hold on to your riches? never be strong enough. We even try to be
is that foundation from which it is currently Can you still enjoy any of it to your good, but we could never be good enough.
built? grave?

SELF-ESTEEM
It’s NOT WHAT

YOU ARE that
is holding you
back. It’s what
YOU THINK YOU
ARE NOT.
Your worth is not in what you wrinkles on her face, she radiated a beauty
possess, but in Him who possesses beyond understanding; one that endeared her
you. to the whole world. Marylyn Munroe may have
been considered one of the most “beautiful”
Your worth is not in how you can ladies of her time but how many lives were
Beyond the masks of perfection, many souls are hurting cover up your imperfections, but in positively touched by her “beauty.” Yet, the inner
how God can make you perfect by beauty of Mother Teresa’s being lingers on in
We are always followed by our sense of receiving all that He could ever give the minds and souls of many. You are loved and
shame and so we hide ourselves with to you. remembered more for your inner beauty than
masks of perfection and of beauty. Beyond your outward physical appearance. That is the
Only in losing everything can you bottom line.
that mask however, we feel inadequate, and
realise how broken you are. Only in
exhausted from trying over and over again.
being broken can you be healed by 2. Intelligence
knowing how valuable you are to the
How we could achieve healing only One who can heal you. Our intellect, no matter how advanced it may
be, is nothing as compared with the minds of
Healing begins when we STOP our frantic Below are common areas of our angels. Similarly, no matter how great angels’
efforts to keep up with others. Healing begins self-esteem’s woundedness. Let us wisdom may be, it is nothing as compared to
when we are able to face our worst pictures try to find their healing by bringing the depths of God’s wisdom. God can grant us
of ourselves and still believe that we are them to the light of God’s love for us wisdom we could never find in all the books
worth something. from the ultimate source of joy and of the world, but this is not the reason why we
self-worth. should feel more worthy or less worthy in His
What are you worth? Presence.
Common areas of our
You are worth more than you ever thought woundedness 3. Strength
yourself to be. You are worth more than your
body or your intelligence or your strength. We have but a limited time on earth. The
1. Beauty
You are worth more than your success and healthiest and the strongest among us cannot
your riches. These things are given to you Even the most beautiful among us
but they are not the essence of who you are. will grow old someday. The beauty
that we envy now is but a fleeting
Your real worth is your likeness to God joy. Others are not worthier to be
Himself. It is that spark which came from loved just because they are more
ancient times, that breath which made you beautiful. We become beautiful
think and move and love. because of God’s great love for
us. He bequeaths us the inner
Because you can be a vessel of God’s joy, you
beauty that pulls others towards us
are worth something. Because you can be an
irrespective of our outward physical
object of His love, you are worth so much
appearance. Was Mother Teresa a
more than all the stars combined.
beauty queen? No! Yet with all the This is the guy responsible for how you feel

SELF-ESTEEM
even live for two centuries. To base our worth on

our physical strength is to look down on people
just because they are disabled or sick or dying.
Every man has God’s dignity in him, no matter I
love
his physical strength. me
4. Wealth/success
Wealth does not indicate that one man is

better than the other. It just means that one
is more endowed with money or possessions.
Endowments are of different nature. These You must love yourself first before others can do Be your own cheer leader
are the ones that counts for wealth. Each one
of us is endowed differently so that we can all
gift to each other. Let each one mind towards achieving our goals. We must also
complete the mosaic of the world. The material
his own and improve the gift he is learn to accept what we cannot change and
things we own will someday rot and decay. The
given. seek God’s wisdom to know the difference.
worldly success we have will one day fade away.
Otherwise, we will always be comparing
None of these will be written on your epitaph.
7. Goodness/ Holiness ourselves with others and in the process
Our contribution to humanity is finally what
erode our sense of self-worth. We therefore
determines how wealthy we are. And this is what Only God is holy. No person is really cannot wallow in self pity. We are our own
should count for our worth. This is not to say that holy no matter how good he or she worst enemy. We use standards of self worth
material wealth and success is bad; but it should appears to be. If we had no need created by man to judge ourselves. As a
not be used as the measure of a man’s worth or a to be saved from ourselves, Jesus result, we punish our inner selves in an effort
reason to look down upon others. Just because wouldn’t have died for us all. Let none to live up to those standards. Yet if we were
Jane lives in a posh estate and you live in a slum boast therefore that he is kinder or to remain true and comfortable to whom
should not make you feel unworthy. It should braver or more patient. We do not God has created us to be, we would be much
only make you feel challenged; and that is only if earn God’s love with our goodness. happier. We must stop judging ourselves
you feel uncomfortable where you are. If wealth We become good because God has harshly against others. We must learn to be
meant all that, most of us would be unworthy. guided us patiently towards the path our own cheer leaders. Within ourselves is a
of His goodness. All that we can offer never-drying source of self-worth installed
5. Social skills God is our gratitude for all the GRACE and certified by our Maker. Whenever the
granted to us. whispers of inferiority and self-pity ring in
Other people may be better at mingling in
social events and in communicating with other your ears, you can always run back inside
Conclusion yourself to draw from that eternal and divine
people. They appear attractive, they attract the
admiration of many. Just because we are not source. With each new day, you can stand on
It is a fact of life that there will always
good at that does not mean we should hold the roof top and declare, “I have the brand
be those below and above us in
ourselves in high esteem. We have other abilities of God on me, I am unique and special, I am
many aspects and all walks of life. We
that those others may not have. Just as they the best in my own way. No one can ever
must learn to be contented, one step
shine at social events, we too have our moments take that away from me. To God be the glory.”
at a time, at all stages of our progress
of shining on account of our unique abilities. In
spite of our station or position, as created by
man, we all have some one who looks up to us.
6. Talent
What is talent? It is but a gift from God, and for

this, no one should boast. Each one is given a
unique gift for in truth, we are God’s wonderful
Have a winner mentality It’s all in the mind

I. HOW TO CREATE A STUDENT
ACCOUNT ON THE KASNEB
STUDENT PORTAL
All students are required to open a
student account on the KASNEB website.
To open the account, follow the steps below:
1. Click on the student login link then

choose the student icon or proceed
to click the student icon if you use the
direct link (http://online.kasneb.or.ke )
to the student portal.
2. Click on create account and select
whether you have a Student Registration
Number or not and proceed to provide
names, preferred email address and a
strong password (which will be used
for future access to self information)
your registration number is Once the website upgrade is finalised in the
and click save.
NAC/68148, provide 68148 as near future, you will be able to:
3. Provide the email address and password
the registration number) and
used when creating the account and • Edit your contact address
click save.
click unlock to login in. • Check payment status
4. Select the “Registration Details” tab. Benefits • Book for examinations.
5. Access the “Course Choice” tab.
Students are hereby advised to ensure they have
6. Select the examination from the You will be able to:
active student accounts given that with effect from
dropdown box, click on the “Yes”
• Download authority to sit for 1 July 2017, timetables, result summaries and other
checkbox and provide the registration
examination/timetable individualised communication will be channelled
number without the prefix (e.g. if
• Result summary. through the student accounts.
II. CALLING ON KASNEB STUDENTS • KASNEB registration number.

WITH DISABILITIES • Current email, telephone number and
postal address.
We are in the process of enhancing disability • Nature of disability.
mainstreaming at KASNEB. This is in an effort to Whether registered with the National Council
improve our service delivery to our students with for Persons with Disability and if so, details
disabilities. of the registration.
In this connection, KASNEB wishes to invite any Students with disability are encouraged to
student with a disability to forward the following register with the Council. Further details on
details to KASNEB: the Council are available on the Council’s
• Full name and National Identification/Passport website www.ncpwd.go.ke
Number.

III. KASNEB STUDENT FEE COLLECTION ACCOUNTS WITH BANKS
Students, trainers, parents/guardians/sponsors, employers and other stakeholders

are hereby informed that KASNEB has opened student fee collection accounts with
the following banks:
a) National Bank of Kenya Ltd. (NBK)

Account Number: 01001031572601
b) Equity Bank Ltd.

c) Kenya Post Office Savings Bank (Postbank)

d) Co-operative Bank of Kenya Ltd.

The bank accounts are already operational. KASNEB is in the process of opening
additional bank accounts. Student will be informed accordingly.
Students are required to complete the appropriate KASNEB forms and relevant fee
deposit slips (except for Postbank which does not use deposit slips). The students will
be issued with one copy of the deposit slip and a computer generated slip for their
records. However, for Postbank only a computer generated receipt will be issued.
Upon payment of the requisite fees to the bank, a cash deposit receipt will be issued
to the payee. The completed KASNEB forms will be left with the bank for onward
transmission to KASNEB together with one copy of the deposit slip.
Students are advised that payment of fees at KASNEB offices will soon be phased
out and therefore they should utilise the available channels through the banks.
Note: Students should ensure that all documents requiring certification, such as copies
of academic and professional certificates and identity card/passport are certified
before being handed over to the bank.
IV. BANNING OF MOBILE PHONES FROM

THE EXAMINATIONS ROOM
All students are hereby informed that mobile phones

were banned from the examinations room with effect
from the November/December 2014 sitting.
Students are further required to note that disciplinary

action will be taken against any student found in
possession of a phone in the examination room,
regardless of whether the phone was in use or not at
the time of its detection.

V. KASNEB SERVICES NOW AVAILABLE AT HUDUMA CENTRES
We are pleased to inform our stakeholders that KASNEB services are now available at the following Huduma Centres:
KASNEB MOBILE NUMBER

NAME HUDUMA CENTRE Email
SAFARICOM AIRTEL
Anne K. Wandeto Kibera, Nairobi 0701698149 0737018536 [email protected]
Anthony M. Kimani Nyeri 0701698213 0737256315 [email protected]
Caroline M. Makutwa GPO, Nairobi 0701699013 0737315992 [email protected]
Christine M. Ndwiga Meru 0701699017 0737422739 [email protected]
Collins M. Okomo Kisumu 0701699026 0737492586 [email protected]
Edith A. Were Mombasa 0701699078 0737516847 [email protected]

Egrah K. Masese Kisii 0701711465 0737543023 [email protected]
Maurice O. Gwaye Makadara, Nairobi 0701713039 0737618421 [email protected]
Modesta C. Langat Nakuru 0795431440 0735031908 [email protected]
Timothy K. Rotich Eldoret 0701713366 0737831524 [email protected]
The services offered at the KASNEB counters at the

Huduma Centres include:
(a) Inquiries
(b) Fee payment at the Huduma Centre using Posta Pay
(c) Student registration
(d) Examination entry
(e) Exemptions
KASNEB Desk at Huduma Centre, Nakuru
(f ) Registration renewal
(g) Request for dispatch of certificates
VI. KASNEB CONTACTS
+254 - (020) 4923000 www.kasneb.or.ke
0722201214
0774201214
0780201214 KASNEBOfficial
0734600624
0792000638
0792002351
[email protected] @KASNEBOfficial
KASNEB Towers, Hospital Road, Upper Hill

P.O. Box 41362 - 00100 Nairobi - Kenya

VII. CICT EXAMINATION
ICT PROJECT
WORK
GUIDELINES
INTRODUCTION
The CICT examination syllabus

requires candidates to undertake
project work before they can be
awarded the final certificate of
the professional examination. A
candidate will not be awarded the
final certificate before successfully
completing the project work.
Candidates are required to

undertake the project work within
twelve (12) months after successfully
completing CICT Part III. Candidates
who commence the ICT Project after
(d) The project should therefore project report which will among other
one year period since completing
be carefully selected in order things, contain selected samples of
Part III examination papers will be
to allow candidates to develop evidence that demonstrate the skills
required to pay late project fee of
systems that demonstrate used to develop the solution.
50% of the normal ICT Project fee.
skills of practical application
and problem solving, as well as Candidates will be required to make
In executing the project work,
techniques of documentation an oral presentation of their project
candidates will be expected to:
and system testing. to a KASNEB examiner.
(a) Produce complete, well-docu- Candidates are advised to identify 1. PROJECT PROPOSAL
mented information systems. projects that will allow them to
develop systems which will run on Candidates with the assistance
(b) Demonstrate that they can
the equipment available at their of their trainers will be required
solve information processing
training institutions. The systems to develop suitable ICT project
problems using the most
may be developed on standalone proposals. Candidates are advised
appropriate means available
or networked computers. to choose projects which can be
to them.
completed within a duration
(c) Develop complete working On completion of the project, of four months including the
solutions to business problems. candidates will be expected to preparation of a project proposal.
prepare and submit to KASNEB a

ICT PROJECT WORK GUIDELINES
1.1 The project work will involve: 2. ANALYSIS 3. DESIGN
• Finding out how the current
system works. 2.1 Investigation The design of a system is crucial in
• What are its inputs and outputs. project work because poor design will
Once a candidate has prepared
• What the users would like the mean that the project will not be success-
a project proposal, he/she must
new system to do. fully implemented. The following critical
make a full investigation of the
elements should be included in the
1.2 The candidates will specifically user’s needs (a user may be a
system design:
be expected to: person or organisation known to
• Analyse a real problem, the candidate or the candidate
3.1 Overall system design
identify the requirements of a may have a potential user in mind
potential user and identify the like in the case of a game or an A brief description of the input,
parts which are possible for a expert system). processing and the output that make
computer solution. up the system.
• Undertake a feasibility study The exercise of designing a
questionnaire or preparing a 3.2 Development of a conceptual
and prepare a feasibility study
list of questions and holding model
report. The feasibility study
report will form part of the interviews should be regarded as A conceptual data model of the new
project proposal. an important part of the project system should be developed. This will
• Determine the requirements work. show entities, attributes and relation-
of computer solution, identify ships.
The following details are
possible solutions and select the
expected from the investigation: 3.3 Input content, format and
appropriate solution.
• Select and apply appropriate validation
techniques and principles to • Input data.
The design of database structure; tables
develop algorithms for the • Processes.
and their relationships, validation rules,
solution to the problem. • Output information (reports
default values and primary keys.
• Implement the algorithms and analyses).
to produce documented • Other requirements. 3.4 Naming convention
and tested system using the 2.2 The analysis report Identification of a naming convention
available and appropriate
The analysis report should and consistently applying it in naming
existing software and hardware.
include the following: of the objects used in the candidate’s
• Draw a schedule of activities
information system.
which will guide the candidates • Introduction.
in completing the project. • Investigation. 3.5 Data validation
• Submit a project proposal • Objectives of the new
The method used for data validation
(1,000 words maximum) to the system.
should be clearly stated. There must be
training institution with a copy • Constraints.
a checklist of facts to be recorded for each
to KASNEB. The feasibility study • Limitations of the existing
data item.
report should be attached to the system.
project proposal. • Proposed solution.
3.6 Output
Eleven percent (11%) of the total marks Nineteen percent (19%) of the
This involves the design of various reports
will be awarded for the development of total marks will be awarded for
which are to be produced by the new
a suitable project proposal. the analysis of the proposed
system.
system.

ICT PROJECT WORK GUIDELINES
3.7 The user interface 4.2 Testing 5.2 Originality
• All candidates are cautioned against
Samples of the user interface should be Testing should include:
plagiarism as it will lead to cancel-
part of the design.
• Testing objectives. lation of the affected candidate’s
• Designing a test plan. project work.
3.8 Charts showing overall system
• Steps in software testing. • Each candidate is required to
design
• Drawing up a test plan. include a one sentence declaration
These include systems flowcharts, system • Selecting test for the test of anti-plagiarism to be placed after
outline charts or other types of system plan. the title page and before the table
charts. • Presenting test results. of contents in the project report.
Ten percent (10%) of the total The declaration should be dated and
3.9 Module design and specification
marks will be awarded for the duly signed by the candidate.
Detailed design of programs, modules
system coding and testing.
or macros should be specified in this 6. PROJECT TIMELINES
section using, for example, pseudo codes
5. THE PROJECT REPORT 6.1 Candidates who wish to
or structured charts.
undertake their project work
The candidate will submit project
3.10 Security and backup design following the June examination
reports to KASNEB upon completion
sitting will be expected to adhere
An inclusion on the system’s security and of the project.
to the following timelines:
backup should be part of the design.
5.1 The project report should Submission of
30 September
3.11 Design of a test strategy include the following: project proposal
• Title page. Project execution 31 December

A test strategy should include:
• Table of contents. Submission
• Logical testing. of reports to 2 January
• Sections on:
KASNEB
• Functional testing. – Analysis.
Project
• System testing. – Design. 8 January to
presentation
• Recovery testing. – Testing. to KASNEB 21 January
• User acceptance testing. examiners
– Systems maintenance
Thirty percent (30%) of the total marks (technical) manual. 6.2 Candidates who wish to
will be awarded for the design of the – User manual. undertake their project work
proposed system. – An appraisal of the following the December
project. examination sitting will be
4. SYSTEM CODING AND TESTING • Appendices showing for expected to adhere to the
example; following timelines:
4.1 Coding – Input documents.
Submission of
– Annotated program 31 March
Candidates will be expected to write well project proposal
listings.
documented programs using appropriate Project execution 31 June
– Test runs, annotated
programming languages. Submission of
and cross-referenced 1 July
reports to KASNEB
test plan. Project
presentation 8 July to 21
Thirty percent (30%) of the total to KASNEB July
marks will be awarded for the examiners
project report.

VIII. REMINDER TO STUDENTS ON SOME POLICY REQUIREMENTS
I. APPEALS FOR REVIEW OF MARKING III. CHANGE OF REGISTRATION FROM ONE QUALIFICATION TO ANOTHER FOR NEW
(i) Students are ADVISED not to make the appeal decision in a rush STUDENTS
and to note that a candidate’s external circumstances that Students who have applied and registered for a particular KASNEB
could have affected his or her performance are not considered qualification and who thereafter wish to change to another
during the review of marking. KASNEB qualification shall be allowed to do so without paying
(ii) All appeals should be on the designated form. The form is the applicable student registration fees provided that the following
available for download on the KASNEB website. conditions are fulfilled:
(iii) The appeal form should be received by KASNEB within fourteen
(14) days after the date of release of the examination results. (i) The application for the change is made before the date of the
This date is indicated in the examination result notification. late examination entry for the sitting immediately following
Students paying through the banks or other agents are advised the date of registration. Such an application must state the
to personally send the forms attaching copies of deposit slips to reasons for the change and include a request for cancellation
KASNEB so as to be received within the stated deadline. Appeal of the previous registration.
forms received after the stated deadline will not be considered. (ii) An administrative charge equivalent to 15% of the registration
(iv) The candidate’s name should NOT appear anywhere on the fees earlier paid shall be levied at the time of application.
form. (ii) Examination fees paid for the previous qualification shall be
(v) A remarking fee shall be charged at Sh. 5,000 per paper transferable to the new qualification, provided that all other
for diploma level examinations and Sh.7,500 per paper for rules relating to examination fees shall apply.
professional level examinations. (iv) An application for change of registration under the above
(vi) A refund of the remarking fee, less an administrative charge of conditions shall only be allowed once for each student.
15% shall be made if, after the remarking, the student’s results
for a particular paper change from FAIL to PASS. IV. ADHERENCE TO DEADLINES FOR PAYMENT OF REGISTRATION, EXAMINATION AND
(vii) Feedback on remarking shall be provided to candidates within OTHER FEES
a period of between two and three weeks after the expiry of (i) All students are required to strictly adhere to the set deadlines
the deadline for receipt of appeals. for payment of fees including for registration, examination
entry, exemptions and registration renewal. Details on the
II. DEFERMENT OF EXAMINATIONS applicable fees and deadlines are available on the KASNEB
Deferment of fees shall be allowed subject to the following website.
conditions: (ii) No student shall be allowed to sit for examinations unless he or
(i) A formal application shall be made by the student for deferment she has paid all the applicable fees. Where in doubt, students
of examination fees to the subsequent sitting. are advised to confirm with KASNEB about their status with
(ii) Deferment of fees is not automatic and shall only be allowed on regard to registration and examination entry by latest thirty
the basis of medical reasons, change of work station or similar (30) days before the date of commencement of examinations.
extraneous circumstances as approved by the Secretary and
Chief Executive. V. CERTIFICATION OF DOCUMENTS
(iii) All relevant evidence should be attached to the application (i) Students are required to ensure that all copies of academic
letter. Applications received without any evidence attached and professional transcripts, testimonials, identity cards or
SHALL NOT be considered. passport documents and passport photos are duly certified
(iv) A student shall be allowed to defer fees to the subsequent by an authorized person before they are submitted to KASNEB.
sitting only once in any particular level or section. The full (ii) All such documents should be certified by the same person.
amount of deferred fees not utilised in the subsequent sitting (iii) Additional information on certification is available at the back
shall be forfeited to KASNEB. of the registration and exemption forms and on the KASNEB
(v) An administrative charge equivalent to 15% of the applicable website.
examination fees shall be levied as a precondition for the
deferment of the examination fees.
(vi) An application for deferment together with the supporting
evidence must be received at least thirty (30) days before the
commencement date of the examination, except for medical
reasons.

EXAMINATION DATES
EXAMINATIONS NOTICE - NOVEMBER 2016 EXAMINATIONS
Students of KASNEB, parents, sponsors, guardians, training institutions and other stakeholders are hereby notified of the following important dates and information.
1. Examination dates for the November 2016 examinations are as follows:
(a) Accounting Technicians Diploma (ATD), Diploma in Information Communication Technology (DICT) and Diploma in Credit Management (DCM)
Levels I, II and III
Monday, 21 November 2016 and Tuesday, 22 November 2016
(b) CPA, CS, CICT ,CIFA and CCP Parts I, II and III
Monday, 21 November 2016, Tuesday 22 November 2016, Wednesday, 23 November 2016, Thursday, 24 November 2016 and Friday, 25 November 2016
(c) Foreign Accountancy Qualifications (FAQ) - Wednesday, 23 November 2016 and Thursday, 24 November 2016
(d) Foreign Secretaries Qualifications (FSQ) - Wednesday, 23 November 2016
(e) Kenya Institute of Supplies Management -
(i) Associate in Procurement and Supply of Kenya (APS-K) - Levels I and II
Monday, 21 November 2016, Tuesday 22 November 2016 and Wednesday, 23 November 2016
(ii) Certified Procurement and Supply Professional of Kenya (CPSP-K) - Parts I and II
Monday, 21 November 2016, Tuesday 22 November 2016, Wednesday, 23 November 2016, Thursday, 24 November 2016 and Friday, 25 November 2016
2. Closing dates
The closing dates for late registration, normal examination entry and late examination entry for the November 2016 examinations are as shown below:
(a) Late registration - Monday, 15 August 2016
(b) Normal examination entry - Monday, 15 August 2016
(c) Late examination entry - Friday, 30 September 2016
3. Examination brochures and forms are obtainable on request, free of charge:

(a) In Kenya:
(i) Either in person at the offices of KASNEB, or through the post.
(ii) KASNEB Huduma Centre outlets
(III) Any Kenya National Library Service (KNLS) branches countrywide.
(iv) Training institutions offering KASNEB courses.
(b) Outside Kenya at the following offices in Eastern and Central Africa:
(i) In Uganda at DMK Associates, Sabina Baiga House, Bombo Road, 2nd floor suite 05 - Kampala, Makerere University Business School (MUBS) - Nakawa,
Kampala International University - Kansanga, Busoga University - Iganga, and Bugema University, Kampala Campus - Bombo Road.
(ii) In Rwanda at Kigali Institute of Management - Rimera, University of Rwanda, College of Business and Economics, Gikondo - Kigali, University of Kigali, Kacyiru
Campus and Kigali Independent University (ULK).
(iii) In Cameroon at Maaron Business School, 10 Rue, Joffre, Akwa - Douala, IPC Douala and Fomic Business School, Buea, Cameroon.
(v) In South Sudan, at the University of Juba and South Sudan Institute of Professional Studies.
(c) Forms can also be downloaded from the website; www.kasneb.or.ke
4. Method of payment of fees

Attention of students is drawn to the “Guide to the November 2016 examinations” regarding secure methods of paying fees to KASNEB.
(a) In Kenya. Students are advised to pay through the KASNEB fee collection accounts in any branch of the following banks:
(i) National Bank of Kenya Ltd. (NBK). - Account No.01001031572601.
(ii) Equity bank Ltd. - Account No.0170299238025.
(iii) Kenya Post Office Savings Bank (Postbank) - Account No.0744130009246.
(iv) Co-operative Bank of Kenya Ltd. - Account No.01129128535900.
Students November also make payment in person at KASNEB offices in cash, by cheques/bankers cheques/drafts drawn in the name of KASNEB or through the post.
However, students are advised that payment at KASNEB offices will soon be phased out and therefore they should utilise the available payment channels through
the banks.
(b) Outside Kenya. Students are advised to pay the applicable fees in dollars at any branch of KCB in their countries to KASNEB KCB collection account number
1123096465, domiciled at Capital Hill Branch, Nairobi. Thereafter, students should submit their documents to KASNEB together with a copy of the bank deposit
slip. Students are individually and personally responsible for ensuring that fees are paid to KASNEB. Consequently, students who pay fees through third parties
should ensure that such parties are honest and reliable and will therefore remit the fees to KASNEB without delay. Bankers Cheques/Drafts should be drawn
payable to KASNEB and Inter-State Money Orders should be payable at City Square Post Office - Nairobi. Examination entry/annual registration renewal forms and
remittances which are sent by post should be posted at least one week before the closing date to ensure that they are received in time.
5. All students who sat for the May 2016 examinations should ENTER for the November 2016 examinations immediately upon confirmation of their May 2016
examination results.
6. All continuing students of KASNEB are required to update their annual registration renewal position by 1 July of each year. New students are required
to note that the registration renewal fee is due on 1 July following the examinations sitting to which they are first eligible to enter.
REVISED KASNEB
EXEMPTION POLICY - 2016
INTRODUCTION
The revised examination syllabuses of KASNEB were Students are reminded that an exemption granted in a
implemented with effect from 1 July 2015 and examined particular paper will be forfeited if one subsequently enters
from the November 2015 examination sitting. Under the to sit the paper. Similarly, a student should not apply for
revised syllabuses, the structure of the examinations and exemption in a particular paper if he/she has already sat
content of various papers were reviewed, which necessitated the paper and failed.
a review of the exemption policy.
This policy addresses exemptions for holders of the following
Under the revised exemption policy, exemptions will qualifications:
continue to be granted on a paper by paper basis. However,
(1) KASNEB professional, diploma and technician
students are advised that the exemptions specified under
qualifications.
this policy are not automatic. For an exemption to be granted
in any one paper, the applicant must prove that he/she (2) Undergraduate and postgraduate degrees from
attempted and passed an equivalent paper whose content recognised universities based in Kenya or outside Kenya.
at least match that of the paper for which an exemption is (3) Diploma qualifications offered by the Kenya National
sought. This means that students will be granted exemptions Examinations Council (KNEC), Kenya Institute of
in those papers in which they demonstrate sufficient Management (KIM) and the Kenya School of Law (KSL).
coverage of course content in their respective qualifications.
(4) ACCA and ICSA qualifications.
For this purpose, an applicant may be required to submit
the university catalogue detailing the course content for a
Applications for exemptions will only be considered if the
specific paper under consideration.
student has completed the course for which he/she seeks
exemption, including the project or thesis where applicable.
Applicants for exemptions should complete the official
Application for Exemption Form (also available for download
The exemptions under each of the above qualifications are
on the KASNEB website: www.kasneb.or.ke) and attach
explained below:
the required documents specified in the form, including
certified copies of academic and professional certificates
A. EXEMPTIONS FOR KASNEB GRADUATES WISHING TO
and transcripts. Students awaiting graduation should
PURSUE OTHER KASNEB QUALIFICATIONS
attach certified copies of transcripts and a letter from the
university confirming that the student has completed the Holders of KASNEB technician, diploma and professional
undergraduate studies and is awaiting graduation. qualifications who wish to pursue other professional
qualifications offered by KASNEB will be eligible for
Applications for exemptions should ideally be submitted
exemption in the common or equivalent papers undertaken
at the time of registration or before payment for the first
in their current qualification(s).
examination. Where, subsequent to registering with
KASNEB, a student obtains a qualification for which he/ Holders of the KASNEB diploma qualifications will be
she is eligible to seek exemption(s), the student may still eligible to a maximum of six (6) exemptions in Part I of the
apply for exemptions provided that such exemptions relate professional qualifications depending on the professional
to subsequent section(s) for which the student has not qualification under consideration.
attempted any of the papers.
Holders of the KASNEB technician qualifications will be
eligible to a maximum of three (3) exemptions in Part I of
the professional qualifications.

The detailed list of exemptions for KASNEB graduates is (2) University graduates will be eligible for exemptions in Part I
provided under Schedule I of this policy. of the professional examinations based on equivalent units
undertaken at undergraduate or postgraduate degrees, except
B. EXEMPTIONS FOR HOLDERS OF VARIOUS UNIVERSITY that for the under mentioned papers, exemptions will only be
DEGREES considered based on the conditions specified below:
Exemptions will be granted to holders of undergraduate and Paper Examination Qualifying degrees
postgraduate degrees from recognised universities based Management CPA • Holders of undergraduate business degrees
in Kenya or outside Kenya who have sat and passed units Accounting with specialisation in accounting
• Holders of undergraduate business degrees
considered to be equivalent to those under the respective
with specialisation in either finance/
professional qualifications of KASNEB. micro finance must demonstrate that
they undertook an equivalent unit before
For certain foreign universities, students may be required consideration for exemption in the paper
to obtain a written confirmation on recognition of their Public CPA/CS/ Holders of undergraduate business
universities in Kenya from the Commission for University Finance and CIFA/CCP degrees with specialisation in either
Education (CUE) in Kenya. Taxation accounting/finance/micro finance. No
exemption will be granted in the paper
In granting exemptions, priority will be accorded to the if a student pursued a unit with only a
units covered in undergraduate degree programmes and public finance component
in particular, the areas of specialisation (also referred to as Financial CIFA • Holders of undergraduate business degrees
majors/concentrations/options). Where a student has pursued Institutions with specialisation in either finance/micro
and Markets finance/financial engineering
a postgraduate degree programme, consideration will also be
• Holders of undergraduate business degrees
given as to whether the postgraduate degree programme is with specialisation in accounting must
a progression of the specialiasation at undergraduate degree prove that they undertook an equivalent
level. unit before consideration for exemption
in the paper
University graduates whose degree certificates and Credit CCP Holders of business related degrees with
transcripts are in a language other than English will be Management specialisation in credit management
required to include certified copies of the degree certificates
Note:
and transcripts together with a set of these documents
translated into English by a qualified translator. The translated • No exemptions will be granted in the Computer Applications
documents should bear the official rubber stamp of the – Practical paper and Operating Systems – Practical paper in
translator indicating the name, telephone number and CICT Part I.
physical address. • Graduates of universities based in non-commonwealth
member countries will not be exempted in the Commercial
Law paper in Section 1 of the respective professional examina-
University graduates are further required to note that:
tions.
(1) Those who have only attempted introductory papers
(3) No exemptions shall be granted in Part II of the professional
in their undergraduate or postgraduate degree
qualifications unless the paper(s) for which the exemptions
programmes, such as Introduction to Financial
are sought were covered at undergraduate degree level as
Accounting or Introduction to Economics will not
options/concentrations/majors and not just as units. The
qualify for exemptions in the respective papers in the
exemptions in Part II of the professional qualifications will
professional examinations of KASNEB. To qualify for
however be limited to the following papers subject to the
an exemption in the Economics paper, for instance, a
conditions specified below:
candidate must demonstrate that he has sufficiently
covered micro and macro-economics, ideally as two
distinct papers.

(4) No exemptions shall be granted in Part III of the
Paper Examination Qualifying degrees
professional examinations except to KASNEB graduates.
Company Law CPA/CS/CCP • Holders of Bachelor of Laws (LLB)
degree from universities based within The detailed list of exemptions for various categories of
the East African region
• Holders of LLB degrees from outside the university degrees is provided under Schedule II of this
EA region and have been admitted as policy. This list will be regularly updated as applications for
advocates of the High Court of Kenya exemptions continue to be received.
Financial CPA/CS/CCP Holders of undergraduate business
Management degrees with specialisation in either C. EXEMPTIONS FOR HOLDERS OF DIPLOMA QUALIFICATIONS
accounting/finance/ economics OFFERED BY THE KENYA NATIONAL EXAMINATIONS COUNCIL
and finance (issued as one option)/ (KNEC), KENYA INSTITUTE OF MANAGEMENT (KIM) AND
financial engineering
KENYA SCHOOL OF LAW (KSL)
Management CPA/CS/CCP Holders of undergraduate degrees
Information in computer science/business Holders of diploma qualifications offered by the Kenya
Systems information technology degree National Examinations Council (KNEC), Kenya Institute of
or other degrees with a minor in Management (KIM) and Kenya School of Law (KSL) will be
Information Technology (minor
eligible for exemptions in certain papers under Part I of the
must be indicated on transcripts and
degree certificate) professional qualifications. The exemptions to be granted
will be based on the area of specialisation in the respective
Quantitative CPA/CIFA/CCP Holders of undergraduate degrees
diploma qualification.
Analysis with specialisation in either:
• Management science or operations
research The list of exemptions for the diploma qualifications offered
• Financial economics or economics and by KNEC, KIM and KSL is provided under Schedule III of this
statistics (issued as one option) policy. This list will be regularly updated as applications for
• Actuarial science (JKUAT)
• Mathematics exemptions continue to be received.
• Financial engineering (JKUAT)
Principles and CS Holders of business related degrees

D. EXEMPTIONS FOR HOLDERS OF THE ASSOCIATION OF
Practice of with specialisations in management,
Management human resource management or CERTIFIED CHARTERED ACCOUNTANTS (ACCA-UK)
marketing management options AND INSTITUTE OF COMPANY SECRETARIES AND
ADMINISTRATORS (ICSA-UK) QUALIFICATIONS
Database Systems CICT Holders of Bachelor of Computer
Science/Business Information
Holders of the ACCA and ICSA qualifications wishing to
Technology degree
pursue KASNEB professional qualifications will be eligible
Systems Analysis CICT Holders of Bachelor of Computer for exemption in certain papers undertaken in the respective
and Design Science/Business Information
qualification.
Technology degree.
Corporate Finance CIFA Holders of undergraduate business The list of exemptions for holders of the ACCA and ICSA
degrees with specialisation in either qualifications is provided under Schedule IV of this policy.
accounting/finance/economics
and finance (issued as one option)/ Exemptions for holders of other foreign qualifications will be
financial engineering considered as applications are received.
Marketing and CCP Holders of Bachelor of Commerce/
Public Relations Business Administration (marketing/
public relations option) degrees

SCHEDULE I
EXEMPTIONS FOR KASNEB PROFESSIONAL, DIPLOMA AND

TECHNICIAN EXAMINATIONS GRADUATES
I. EXEMPTIONS FOR KASNEB PROFESSIONAL EXAMINATIONS GRADUATES
CPA graduates CS graduates

Exemptions in CS • Commercial Law Exemptions in CPA • Financial Accounting
• Business Communication • Commercial Law
• Economics • Entrepreneurship and Communication
• Principles of Accounting • Economics
• Public Finance and Taxation • Public Finance and Taxation
• Company Law • Company Law
• Financial Management • Financial Management
• Principles and Practice of Management • Management Information Systems
• Management Information Systems • Strategy, Governance and Ethics
Exemptions in CICT • Introduction to Computing Exemptions in CICT • Introduction to Computing
• Entrepreneurship and Communication • Entrepreneurship and Communication
• Principles of Accounting • Principles of Accounting
• Strategy, Governance and Ethics • Strategy, Governance and Ethics
Exemptions in CIFA • Financial Accounting Exemptions in CIFA • Financial Accounting
• Financial Mathematics • Entrepreneurship and Communication
• Entrepreneurship and Communication • Economics
• Economics • Public Finance and Taxation
• Public Finance and Taxation • Regulation of Financial Markets
• Corporate Finance • Corporate Finance
• Financial Statements Analysis • Strategy, Governance and Ethics
• Quantitative Analysis Exemptions in CCP • Commercial Law
• Strategy, Governance and Ethics • Entrepreneurship and Communication
Exemptions in CCP • Commercial Law • Economics
• Entrepreneurship and Communication • Principles of Accounting
• Economics • Public Finance and Taxation
• Principles of Accounting • Company Law
• Public Finance and Taxation • Financial Management
• Company Law • Management Information Systems
• Financial Management • Strategy, Governance and Ethics
• Management Information Systems
• Quantitative Analysis CICT graduates
Exemptions in CPA • Financial Accounting
• Strategy, Governance and Ethics
• Entrepreneurship and Communication
• Management Information Systems

SCHEDULE I (continued)
EXEMPTIONS FOR KASNEB PROFESSIONAL, DIPLOMA AND

TECHNICIAN EXAMINATIONS GRADUATES
Exemptions in CS • Business Communication Exemptions in CCP • Entrepreneurship and Communication

• Principles of Accounting • Economics
• Principles and Practice of Management • Principles of Accounting
• Management Information Systems • Public Finance and Taxation
Exemptions in CIFA • Financial Accounting • Financial Management
• Entrepreneurship and Communication • Management Information Systems
• Strategy, Governance and Ethics • Quantitative Analysis
Exemptions in CCP • Entrepreneurship and Communication • Strategy, Governance and Ethics
• Principles of Accounting
• Management Information Systems CCP graduates
• Strategy, Governance and Ethics Exemptions in CPA • Financial Accounting
• Commercial Law
CIFA graduates • Entrepreneurship and Communication
Exemptions in CPA • Financial Accounting • Economics
• Entrepreneurship and Communication • Public Finance and Taxation
• Economics • Company Law
• Public Finance and Taxation • Financial Management
• Financial Management • Management Information Systems
• Management Information Systems • Quantitative Analysis
• Quantitative Analysis • Strategy, Governance and Ethics
• Strategy, Governance and Ethics Exemptions in CS • Commercial Law
• Advanced Financial Management • Business Communication
Exemptions in CS • Business Communication • Economics
• Economics • Principles of Accounting
• Principles of Accounting • Public Finance and Taxation
• Public Finance and Taxation • Company Law
• Financial Management • Financial Management
• Principles and Practice of Management • Principles and Practice of Management
• Management Information Systems • Management Information Systems
• Financial Markets Law Exemptions in CICT • Introduction to Computing
Exemptions in CICT • Introduction to Computing • Entrepreneurship and Communication
• Principles of Accounting • Strategy, Governance and Ethics

EXEMPTIONS FOR KASNEB PROFESSIONAL, DIPLOMA AND TECHNICIAN EXAMINATIONS GRADUATES
Exemptions in CIFA • Financial Accounting Diploma in Credit Management (DCM)
• Entrepreneurship and Communication Exemptions in CCP • Credit Management
• Economics • Commercial Law
• Public Finance and Taxation • Principles of Accounting
• Corporate Finance • Public Finance and Taxation
Exemptions in CPA • Commercial Law
• Quantitative Analysis
• Strategy, Governance and Ethics • Public Finance and Taxation
Exemptions in CS • Commercial Law
• Business Communication
II. EXEMPTIONS FOR KASNEB • Principles of Accounting
DIPLOMA EXAMINATIONS GRADUATES • Public Finance and Taxation
Exemptions in CICT • Entrepreneurship and Communication
Accounting Technicians Diploma (ATD) • Principles of Accounting
Exemptions in CPA • Financial Accounting Exemptions in CIFA • Financial Mathematics
• Commercial Law • Entrepreneurship and Communication
• Entrepreneurship and Communication • Public Finance and Taxation
• Economics
• Management Accounting
• Public Finance and Taxation III. EXEMPTIONS FOR KASNEB
Exemptions in CS • Commercial Law TECHNICIAN EXAMINATIONS GRADUATES
• Business Communication
• Economics Accounting Technicians Certificate (ATC)
• Public Finance and Taxation • Financial Accounting
• Principles of Accounting • Commercial Law
Exemptions in CS
Exemptions in CIFA • Financial Accounting
• Financial Mathematics • Entrepreneurship and Communication
Exemptions in CICT
• Economics • Financial Accounting
• Public Finance and Taxation Exemptions in CIFA
Exemptions in CCP • Commercial Law • Commercial Law
• Entrepreneurship and Communication Exemptions in CCP • Entrepreneurship and Communication
• Economics • Principles of Accounting
• Public Finance and Taxation
Information Communication Technology Technicians (ICTT)
Exemptions in CICT • Introduction to Computing
Diploma in Information Communication Technology (DICT) • Computer Applications - Practical
• Computer Applications Practical • Computer Support and Maintenance
Exemptions in CPA • Entrepreneurship and Communication
• Computer Support and Maintenance Exemptions in CS • No exemptions
Exemptions in CPA • Entrepreneurship and Communication Exemptions in CIFA • Entrepreneurship and Communication
Exemptions in CS • Business Communication Exemptions in CCP • Entrepreneurship and Communication
Exemptions in CIFA • Entrepreneurship and Communication Credit Management Technicians (CMT)
Exemptions in CCP • Entrepreneurship and Communication Exemptions in CCP • Credit Management
• Principles of Accounting • Commercial Law
• Economics

EXEMPTIONS FOR KASNEB PROFESSIONAL, DIPLOMA AND TECHNICIAN EXAMINATIONS GRADUATES

Investment and Securities Technicians (IST)
• Economics Exemptions in CIFA • Entrepreneurship and Communication
• Economics
Exemptions in CS • Commercial Law
• Financial Institutions and Markets
• Economics
Exemptions in CPA • Entrepreneurship and Communication
• Economics
Exemptions in CIFA • Entrepreneurship and Communication
Exemptions in CS • Economics
• Economics
Exemptions in CCP • Commercial Law
SCHEDULE II
EXEMPTIONS FOR VARIOUS TYPES OF DEGREES

EXEMPTIONS IN:
QUALIFICATION
CPA CS CICT CIFA CCP
Bachelor of Section 1: Section 1: Section 1: Section 1: Section 1:

Commerce/Business • Financial Accounting • Organisational Behaviour • Entrepreneurship and • Financial Accounting • Commercial Law
Management • Commercial Law • Commercial Law Communication • Financial Mathematics • Entrepreneurship and
(Accounting option) • Entrepreneurship and • Business Communication Section 2: • Entrepreneurship and Communication
Communication Section 2: • Principles of Accounting Communication Section 2:
Section 2: • Economics Section 2: • Economics
• Economics • Principles of Accounting Graduates with a minor in • Economics • Principles of Accounting
• Management Accounting Section 3: Information Technology, • Financial Institutions Section 3:
Section 3: • Financial Management as indicated on the degree and Markets • Financial Management
• Financial Management Nb: certificate, will also be Section 3: Nb:
Nb: (i) Exemptions in the exempted in the following Corporate Finance (i) Exemptions in the
(i) Exemptions in the Public Public Finance and papers: Nb: Public Finance and
Finance and Taxation paper Taxation paper will • Introduction to Exemptions in the Taxation paper will
will only be considered if only be considered Computing Public Finance and only be considered if an
an applicant has covered if an applicant has • Computer Support and Taxation paper will applicant has covered
an equivalent paper or a covered an equivalent Maintenance only be considered if an an equivalent paper or
paper with a bias in taxation paper or a paper with • Systems Analysis and applicant has covered a paper with a bias in
practice. a bias in taxation Design an equivalent paper or taxation practice.
(ii) Graduates with a minor in practice. a paper with a bias in (ii) Graduates with a
Information Technology, (ii) Graduates with a taxation practice. minor in Information
as indicated on the degree minor in Information Technology, as
certificate, will also be Technology, as indicated on the
exempted in the Management indicated on the degree certificate,
Information Systems paper. degree certificate, will also be exempted
will also be exempted in the Management
in the Management Information Systems
Information Systems paper
paper.

SCHEDULE II (continued)
EXEMPTIONS IN:
QUALIFICATION

Commerce/ Business • Financial Accounting • Organisational Behaviour Entrepreneurship and Financial Accounting Commercial Law
Management • Commercial Law • Commercial Law Communication Financial Mathematics Entrepreneurship and
(Finance Option • Entrepreneurship and • Business Section 2: Entrepreneurship and Communication
and Micro-Finance Communication Communication Principles of Accounting Communication Section 2:
Option) Section 2: Section 2: Section 2: Economics
• Economics • Economics Graduates with a minor in Economics Principles of Accounting
Section 3: • Principles of Accounting Information Technology, Financial Institutions and Section 3:
• Financial Management Section 3: as indicated on the degree Markets Financial Management
Nb: • Financial Management certificate, will also be Section 3: Nb:
(i) Exemptions in the Nb: exempted in the following Corporate Finance Exemptions in the Public
Management Accounting (i) Exemptions in the papers: Finance and Taxation paper
paper will only be considered Public Finance and • Introduction to Nb: will only be considered if
if an applicant has covered an Taxation paper will Computing Exemptions in the an applicant has covered an
equivalent paper only be considered • Computer Support and Public Finance and equivalent paper or a paper
(ii) Exemptions in the Public if an applicant has Maintenance Taxation paper will with a bias in taxation.
Finance and Taxation paper covered an equivalent • Systems Analysis and only be considered if an Graduates with a minor in
will only be considered if paper or a paper with Design applicant has covered Information Technology,
an applicant has covered an a bias in taxation. an equivalent paper or as indicated on the
equivalent paper or a paper (ii) Graduates with a a paper with a bias in degree certificate, will
with a bias in taxation. minor in Information taxation also be exempted in the
(iii) Graduates with a minor in Technology, as Management
Information Technology, indicated on the Information Systems paper
as indicated on the degree degree certificate,
certificate, will also be will also be exempted
exempted in the Management in the Management
Information Systems paper. Information Systems
paper.

Economics and • Financial Accounting • Commercial Law Entrepreneurship and • Financial Accounting • Commercial Law
Finance • Commercial Law • Business Communication Communication • Financial Mathematics • Entrepreneurship and
• Entrepreneurship and Section 2: Section 2: • Entrepreneurship and Communication
Communication • Economics • Principles of Accounting Communication Section 2:
Section 2: • Principles of Accounting Section 2: • Economics
• Economics Section 3: • Economics • Principles of Accounting
Section 3: • Financial Management Section 3: Section 3:
• Financial Management • Corporate Finance • Financial Management

Financial Economics • Financial Accounting • Commercial Law • Entrepreneurship and • Financial Accounting • Commercial Law
• Commercial Law • Business Communication Communication • Financial Mathematics • Entrepreneurship and
Communication • Economics • Principles of Accounting Communication Section 2:
Section 2: • Principles of Accounting Section 2: • Economics
• Economics • Economics • Principles of Accounting
Section 4: Section 4: Section 4:
• Quantitative Analysis • Quantitative Analysis • Quantitative Analysis
Bachelor of Science Section 1: Section 1: Section 1: Section 1: Section 1:

(International • Financial Accounting • Organisational Behaviour • Entrepreneurship and • Financial Accounting • Commercial Law
Business • Commercial Law • Commercial Law Communication • Financial Mathematics • Entrepreneurship and
Administration) • Entrepreneurship and • Business Communication • Entrepreneurship and Communication
– Finance Communication Section 2: Communication Section 2:
Concentration/ Section 2: • Economics Section 2: • Economics
Major • Economics • Principles of Accounting • Economics • Principles of Accounting
Section 3: Section 3: • Financial Institutions Section 3:
• Financial Management • Financial Management and Markets • Financial Management
Section 3:
• Corporate Finance

EXEMPTIONS IN:
QUALIFICATION
Bachelor of Arts Section 1: Section 1: Section 1: Section 1: Section 1:

(Economics) • Financial Accounting • Organisational Behaviour • Entrepreneurship and • Financial Accounting • Entrepreneurship and
• Entrepreneurship and • Business Communication Communication • Financial Mathematics Communication
Communication Section 2: Section 2: • Entrepreneurship and Section 2:
Section 2: • Economics • Principles of Accounting Communication • Economics
• Economics • Principles of Accounting Section 2: • Principles of Accounting
• Economics

in Economics and • Financial Accounting • Business Communication • Entrepreneurship and • Financial Accounting • Entrepreneurship and
Statistics • Entrepreneurship and Section 2: Communication • Financial Mathematics Communication
Communication • Economics Section 2: • Entrepreneurship and Section 2:
Section 2: • Principles of Accounting • Principles of Accounting Communication • Economics
• Economics Section 2: • Principles of Accounting
• Quantitative Analysis • Economics Section 4:
Section 4: Quantitative Analysis
Bachelor of Arts Section 1: Section 1: Section 1: Section 1: Section 1:

(General) • Entrepreneurship and • Organisational Behaviour • Entrepreneurship and • Entrepreneurship and • Entrepreneurship and
Communication • Business Communication Communication Communication Communication
• Commercial Law (only in • Commercial Law (only • Commercial Law (only
selected cases where paper in selected cases where in selected cases where
covered) paper covered) paper covered)

Education (Arts) Financial Accounting Organisational Behaviour Entrepreneurship and Financial Accounting Commercial Law
Commercial Law Commercial Law Communication Financial Mathematics Entrepreneurship and
Entrepreneurship and Business Communication Section 2: Entrepreneurship and Communication
Communication Section 2: Principles of Accounting Communication Section 2:
Section 2: Economics Section 2: Economics
Economics Principles of Accounting Economics Principles of Accounting

Commerce Financial Accounting Organisational Behaviour Entrepreneurship and Financial Accounting Commercial Law
(Actuarial Science) Commercial Law Commercial Law Communication Financial Mathematics Entrepreneurship and

(Actuarial Science) Financial Accounting Business Communication Entrepreneurship and Financial Accounting Entrepreneurship and
- JKUAT Entrepreneurship and Section 2: Communication Financial Mathematics Communication
Communication Economics Section 2: Entrepreneurship and Section 2:
Section 2: Principles of Accounting Principles of Accounting Communication Economics
Economics Section 2: Principles of Accounting
Section 4: Economics Section 4:
Quantitative Analysis Section 4: Quantitative Analysis
Quantitative Analysis

(Management Financial Accounting Organisational Behaviour Entrepreneurship and Financial Accounting Commercial Law
Science Option) Commercial Law Commercial Law Communication Financial Mathematics Entrepreneurship and
Section 4: Section 4: Section 4:
Quantitative Analysis Quantitative Analysis Quantitative Analysis

EXEMPTIONS IN:
QUALIFICATION
Section 1: Section 1: Section 1: Section 1: Section 1:

Bachelor of Commercial Law Organisational Behaviour Entrepreneurship and Entrepreneurship and Commercial Law
Purchasing and Entrepreneurship and Commercial Law Communication Communication Entrepreneurship and
Supply Chain Communication Business Communication * Principles of Accounting Section 2: Communication
Management Section 2: Section 2: – certain cases only Economics Section 2:
Economics Economics upon further review of * Financial Mathematics Economics
* Financial Accounting – certain * Principles of Accounting application and Principles of *Principles of Accounting
cases only upon further review of – certain cases only Accounting – certain – certain cases only upon
application upon further review of cases only upon further further review of application
application review of application
Bachelor of Business Section 1: Section 1: Section 1: Section 1: Section 1:

Administration Financial Accounting Organisational Behaviour Entrepreneurship and Financial Accounting Commercial Law
(Management Commercial Law Commercial Law Communication Financial Mathematics Entrepreneurship and
Option) Entrepreneurship and Business Communication Section 2: Entrepreneurship and Communication
and Communication Section 2: Principles of Accounting Communication Section 2:
Bachelor of Business Section 2: Economics Section 2: Economics
Management Economics Principles of Accounting Economics Principles of Accounting
(International Section 3:
Business Principles and Practice of
Management – Management
MKU)

Commerce • Financial Accounting • Organisational Behaviour • Entrepreneurship and • Financial Accounting • Commercial Law
(Marketing Option) • Commercial Law • Commercial Law Communication • Entrepreneurship and • Entrepreneurship and
• Entrepreneurship and • Business Communication Section 2: Communication Communication
Communication Section 2: • Principles of Accounting Section 2: Section 2:
Section 2: • Economics • Economics • Economics
• Economics • Principles of Accounting • Principles of Accounting
Section 3: Section 3:
• Principles and Practice of • Marketing and Public
Management Relations
Bachelor of Business Section 1: Section 1: Section 1: Section 1 Section 1

Information • Financial Accounting • Organisational Behaviour • Introduction to • Financial Accounting • Commercial Law
Technology • Commercial Law • Commercial Law Computing • Financial Mathematics • Entrepreneurship and
• Entrepreneurship and • Business Communication • Entrepreneurship and • Entrepreneurship and Communication
Communication Section 2: Communication Communication Section 2
Section 2: • Economics • Computer Support and Section 2: • Economics
• Economics • Principles of Accounting Maintenance • Economics • Principles of Accounting
Section 4 Section 4: • Principles of Accounting Section 4:
• Management Information • Management Section 3: • Management Information
Systems Information Systems • Database Systems Systems
• Systems Analysis and
Design
Bachelor of Science Section 1: Section 1: Section 1: Section 1 Section 1

in Financial • Financial Accounting • Entrepreneurship and • Entrepreneurship and • Financial Accounting • Entrepreneurship and
Engineering • Commercial Law Communication Communication • Financial Mathematics Communication
(JKUAT) • Entrepreneurship and • Commercial Law Section 2: • Entrepreneurship and • Commercial Law
Communication Section 2: • Principles of Accounting Communication Section 2
Section 2: • Economics Section 2: • Economics
• Economics • Principles of Accounting • Economics • Principles of Accounting
Section 3: Section 3: • Financial Institutions Section 3:
• Financial Management • Financial Management and Markets • Financial Management
Section 4 Section 3: Section 4
• Quantitative Analysis • Corporate Finance • Quantitative Analysis
Section 4

EXEMPTIONS IN:
QUALIFICATION

in Mathematics and • Entrepreneurship and • Business Communication • Introduction to • Entrepreneurship and • Entrepreneurship and
Computer Science Communication Section 4: Computing Communication Communication
Section 4: • Management • Entrepreneurship and • Financial Mathematics Section 4:
• Management Information Information Systems Communication Section 4: • Management Information
Systems • Computer Support and • Quantitative Analysis Systems
• Quantitative Analysis Maintenance • Quantitative Analysis
• Section 3:
• Database Systems
• Systems Analysis and
Design

Bachelor of Science • Entrepreneurship and • Business Communication • Entrepreneurship and • Entrepreneurship and • Entrepreneurship and
in Mathematics Communication Communication Communication Communication
Section 4: • Financial Mathematics Section 4:
• Quantitative Analysis Section 4: • Quantitative Analysis

Bachelor of Laws • Financial Accounting • Organisational Behaviour • Entrepreneurship and • Entrepreneurship and Commercial Law
(LLB) • Commercial Law • Commercial Law Communication Communication Entrepreneurship and
• Entrepreneurship and • Business Communication Nb: Nb: Communication
Communication Section 3: Advocates of the High Court (i) Advocates of the Section 2:
Section 3: • Company Law of Kenya, or those who High Court of Economics
Company Law Nb: demonstrate sufficient Kenya, or those Section 3:
Nb: (i) Advocates of the coverage of Financial who demonstrate Company Law
(i) Advocates of the High Court High Court of Accounting at degree level, sufficient coverage Nb:
of Kenya, or those who Kenya, or those will also be considered for of Financial (i) Advocates of the High
demonstrate sufficient who demonstrate exemption in the Principles Accounting at Court of Kenya, or those
coverage of Financial sufficient coverage of of Accounting paper. degree level, will who demonstrate
Accounting at degree level, Financial Accounting also be considered sufficient coverage of
will also be considered for at degree level, will for exemption in the Financial Accounting
exemption in the Financial also be considered Financial Accounting at degree level, will
Accounting paper. for exemption in paper. also be considered
(ii) Applicants who have the Principles of (ii) (ii) Applicants who for exemption in the
undertaken papers in micro Accounting paper. have undertaken Principles of Accounting
and macro economics at (ii) Applicants who papers in micro and paper.
degree level will also be have undertaken macro economics (ii) Applicants who
considered for exemption in papers in micro and at degree level will have undertaken
the Economics paper. macro economics also be considered papers in micro and
at degree level will for exemption in the macro economics
also be considered Economics paper. at degree level will
for exemption in the also be considered
Economics paper. for exemption in the
Economics paper.
Nb: Additional degrees will be incorporated as applications continue to be received.

SCHEDULE III
EXEMPTIONS FOR HOLDERS OF DIPLOMA QUALIFICATIONS OFFERED BY
KENYA NATIONAL EXAMINATIONS COUNCIL (KNEC), KENYA INSTITUTE
OF MANAGEMENT (KIM) AND KENYA SCHOOL OF LAW (KSL)
EXEMPTIONS IN:
QUALIFICATION

Diploma in • Financial Accounting • Commercial Law • Entrepreneurship and • Financial Accounting • Commercial Law
Accountancy • Commercial Law • Business Communication • Entrepreneurship and • Entrepreneurship and
and • Entrepreneurship and Communication Section 2: Communication Communication
Diploma in Banking Communication Section 2 • Principles of Nb: Section 2:
and Finance (KNEC) • Principles of Accounting Consideration may be • Principles of
Accounting given for exemption Accounting
in the Financial
Mathematics paper
where applicant has
attempted an equivalent
paper.
Diploma in Business Section 1: Section 1: Section 1: Section 1: Section 1:

Administration • Commercial Law • Commercial Law • Entrepreneurship and • Entrepreneurship and • Commercial Law
• Entrepreneurship and • Business Communication Communication • Entrepreneurship and
Diploma in Communication Communication Nb: Nb: Communication
Management – Nb: Nb: Exemption in Principles Exemption in Financial Nb:
Purchasing and Exemption in Financial Accounting • Exemption in of Accounting may be Accounting may be Exemption in Principles
Supplies may be considered where Organisational considered where the considered where the of Accounting may be
the candidate has passed an Behaviour may be candidate has passed candidate has passed considered where the
Diploma in introductory and subsequent considered where an introductory and an introductory and candidate has passed
Human Resources paper in Accounting, such as candidate has passed subsequent paper subsequent paper an introductory and
Management Finance and Cost Accounting I an equivalent paper. in Accounting, such in Accounting, such subsequent paper
and II. • Alternatively, as Finance and Cost as Finance and Cost in Accounting, such
(KIM) exemption in Principles Accounting I and II. Accounting I and II. as Finance and Cost
of Accounting may be Accounting I and II.
considered where the
candidate has passed
an introductory and
subsequent paper
in Accounting, such
as Finance and Cost
Accounting I and II.
• (maximum number of
exemptions: 3 papers)
Diploma in Law Section 1 Section 1 Section 1

(KSL) • Commercial Law • Commercial Law • Commercial Law

SCHEDULE IV
EXEMPTIONS FOR ACCA (UK) AND ICSA (UK) HOLDERS
EXEMPTIONS IN:
QUALIFICATION

ACCA (UK) • Financial Accounting • Commercial Law • Entrepreneurship and • Financial Accounting • Commercial Law
• Commercial Law • Business Communication Communication • Financial Mathematics • Entrepreneurship and
Communication • Principles of Accounting • Principles of Communication Section 2:
Section 2: Section 3: Accounting Section 3: • Principles of
• Management Accounting • Financial Management • Corporate Finance Accounting
(where an equivalent • Principles and Practice of Section 4: Section 3:
paper is passed) Management • Financial Statements • Financial
Section 3: Analysis Management
• Financial Management • Quantitative Analysis Section 4:
• Financial Reporting • Quantitative Analysis
Section 4:
• Auditing and Assurance
(where an equivalent
paper is passed)
ICSA (UK) Section 1: Section 1: Section 1: Section 1: Section 1:

• Financial Accounting • Organisational Behaviour • Introduction to • Financial Accounting • Commercial Law
• Commercial Law • Commercial Law Computing • Entrepreneurship and • Entrepreneurship and
• Entrepreneurship and • Business Communication • Entrepreneurship and Communication Communication
Communication Section 2: Communication Section 2: Section 2:
Section 2: • Economics Section 2: • Economics • Economics
• Economics • Principles of Accounting • Principles of Section 3: • Principles of
Section 3: Section 3: Accounting • Corporate Finance Accounting
• Financial Management • Financial Management Section 5: Section 4: Section 3:
Section 4: • Principles and Practice of • Strategy, Governance • Quantitative Analysis • Financial
• Management Management and Ethics Section 5: Management
Information System Section 4: • Strategy, Governance Section 4:
• Quantitative Analysis • Corporate Secretarial Practice and Ethics • Management
Section 5: • Management Information Systems Information System
• Strategy, Governance and • Law and Procedure of Meetings • Quantitative Analysis
Ethics Section 5: Section 5:
• Human Resource Management • Strategy, Governance
• Governance and Ethics and Ethics
Section 6:
• Strategic Management

PICT RIAL
CSR Donation of blankets and mattresses to Kaimosi Special
School for the mentally handicapped on Saturday, 11 June
2016 in Tiriki, Vihiga
5th Rift Valley Technical Training Institute (RVTTI) International Conference from Thursday, 26
May 2016 to Saturday, 28 May 2016
KCA University Western Career Fair 2016 organised by KCA University on Friday, 29 April 2016 at The 6th Annual High Schools Technical Subjects Exhibition and Higher Institutions Career Fair
Christ is the Answer Ministries (CITAM), Kisumu in Nakuru High School on Friday, 17 June 2016

KNLS Donation of reading materials and branded book shelves to
ten Kenya National Library Services (KNLS) branches from
Monday, 20 June 2016 to Friday, 24 June 2016
Kithasyu,Kibwezi Kinyambu,Kibwezi Isiolo
Lusumu, Kakamega Kimilili Kapsabet
Koru Awendo

PICTORIAL
PRIZE AWARDS
Prize Award Ceremony for the May 2015 Examination sitting held on Friday, 8 April 2016 at the Hilton Hotel, Nairobi

PRIZE AWARDS
Cameroon stakeholders forum organised by Cameroon

Association of KASNEB Students (CAKS) in Douala, Cameroon
on Saturday, 28 May 2016. Examination certificates were
issued during the forum.

Extelcoms House, 9th & 10th Floors
the National values. Haile Selassie Avenue
•Conduct and participateUsiseme
in trainings and Kijana Tu!
P.O BOX 30510 – 00100 NAIROBI Sema Kijana Mwadilifu!!!
sensitizations on national values. TELEPHONE: 020 2224029
EXT. 200
•Mainstream national values into the creative FACEBOOK: cohesion.go.ke
arts through songs, drama, poems and TWITTER: @CohesionKe
dances.
THE ROLE OF THE YOUTH IN THE PROMOTION OF THE NATIONAL VALUES AND PRINCIPLES OF GOVERNANCE
1.0 INTRODUCTION Embrace, uphold, practice and disseminate •They will ensure full participation youth in •Refu
Youths have the capacity to utilise their skills, national values as stipulated in Article 10 (2) of the socio-economic and political processes that
The National Values and Principles of Gover- energy and vibrancy to transform the the Constitution of Kenya, 2010. in our country. •Rec
nance in Article 10 of the Constitution are the socio-economic environment for a value driven Respect each others’ culture and engage in •The will ensure different ethnic and social natio
fundamental beliefs of our nation, guiding the society. activities that promote coexistence amongst groups live harmoniously. •Org
choices, actions, and behaviour of all Kenyans. Youths have the capacity to harness their different ethnic groups. •Conflicts will be resolved peacefully and ties o
They exert influence on the way the citizens potential in business for socioeconomic, envi- Disseminate the provisions of the Constitution effectively.
relate with each other and how communities ronmental development and sustainable peace. on issues related to National Values and Princi- •They will encourage socially acceptable
engage with others. ples of Governance. behaviors within the youth.
THE
Exploit the opportunities that are provided for •National Values will enhance access to
The National Values and Principles of Gover- in the Constitution of Kenya, 2010 that are social justice and respect for the rule of law.
nance are: patriotism, national unity, sharing and geared towards the promotion of National
devolution of power, the rule of law, democracy Values.
and participation of the people; human dignity, Uphold integrity and accountability in positions
equity, social justice, inclusiveness, equality, entrusted to them.
human rights, non-discrimination and protec- Observe the rule of law and advocate for social
tion of the marginalized; good governance,
POWER justice.
4 H...
YOUTH
integrity, transparency and accountability; and Refuse to follow any agenda that are driven by
sustainable development. selfish interests rather, be guided by National
Values.
the power of youth
Who is a youth? Initiate and participate in campaigns that
Youths are dynamic in their thinking and can preserve the environment for sustainable 5.0 What strategies can the youth use
A youth is a person between the ages of 18 thus generate solutions to many societal development. to promote National Values?
and 35 years as defined by the Constitution of problems arising from failure to embrace
•Embrace, uphold and disseminate the
Kenya (2010). national values. 4.0 How will National Values benefit the youth? Yo
Youths account for 38% of the population and They have the capacity to influence leaders and National values in the Constitution of Kenya
constitute 60% of the total labour force peers in the process of promoting national They will have fair access to opportunities. (2010).
according to the National Council forE Popula- values •Monitor and evaluate implementation of
HT N Iin society.
HTUOY EHT FO ELOR EHT
tion and Development (NCPD) report, 2013. They will instill a sense of social responsibility; National Values by all state and public
SEULAV L 3.0AWhatN O
is the role Iyouth
of the TA in the N EHT FO NOITOM officers
ORP
2.0 Why Engage the Youth In the Promotion promotion of the National Values and They will enhance youths interaction with •Speak out against those who fail to uphold M
of National Values? ECNANPrinciples RE ofV OG FO SE
Governance? familyLandP ICN
the community henceIbuilds
RaP DN A
national values.
•Commend and emulate those who practice Dire
unified nation.
The youth are the largest and the most active Take advantage of available education and the National values.
age group in the country. training opportunities in National Values and They will define youths identity as a Kenyan. •Conduct and participate in trainings and
Young people have the potential to provide a Principles of governance. sensitizations on national values.
!embracing
creative perspective in !!ufNational
ilidawM an
Sustain peaceful ajiK
co-existence ameSThey!will
and national uensure
T protection
ana jiK
of human rights eme•Mainstream
sisU national values into the creative
Values and Principles of Governance. unity, through respect for human dignity, patrio- and responsibility. arts through songs, drama, poems and
tism and loyalty to the country. dances.
Ministry of Interior and Coordination of National Government

Directorate of National Cohesion and National Values
With Kenya being an investment

destination, ICIFA’s mission is to develop a
talent pipeline for Investment & Financial
Analysts in developing economies within
the Sub-Saharan Africa.
Being an ICIFA member provides an
opportunity for networking, gaining
more knowledge in financial markets,
professional growth through trainings and
many more.
ICIFA as a professional body is now
recognised under the Investment and
Financial Analysts Act of 2015 ( No. 13
of 2015) and is dedicated to regulating
professionals in financial markets in an
effort to protect investors wealth.
We invite eligible members to join our
membership under the Full Membership
category. Membership is open to all CIFA
graduates.
Registration fee is Kshs 6,000.
Yearly subscription is Kshs. 6,000.
Affiliate member of ACIIA and APSEA

INSTITUTE OF CERTIFIED INVESTMENT AND
FINANCIAL ANALYSTS
P.O. Box 48250-00100 NAIROBI
KASNEB TOWERS, Hospital Road Upperhill, Nairobi Kenya.
Mobile: 0726498698 Email: [email protected]
Website: www.icifa.co.ke

PRIZE
WINNERS
NOVEMBER 2015 EXAMINATIONS
TECHNICIAN COST ACCOUNTING COMPUTER MATHEMATICS
EXAMINATIONS ATC/162564 ICT/6333
MARIAM HAMADI SUDI JACKLINE NALIAKA MURIANI
ACCOUNTING TECHNICIANS Donor: KASNEB Donor: KASNEB
CERTIFICATE (ATC) EXAMINATION ENTREPRENEURSHIP AND
RUNNER UP
COMMUNICATION
ATC - LEVEL I COST ACCOUNTING (COMMON PAPER)
INTRODUCTION TO FINANCIAL ATC/165786 ICT/6302
ACCOUNTING JOSEPH MWANZANJE NYAWA CARLOS MUTUA MUITHYA
ATC/151735 Donor: KASNEB Donor: KASNEB
AUGUSTINE ISAAC OLAHO TAXATION COMPUTER APPLICATIONS (THEORY)
Donor: KASNEB ATC/165431 ICT/6333
INTRODUCTION TO LAW SIMON MURIITHI GITHEMO JACKLINE NALIAKA MURIANI
(COMMON PAPER) Donor: KASNEB Donor: KASNEB
ATC/166706 AUDITING COMPUTER APPLICATIONS
PERIS JEPKOECH SEREM ATC/161350 (PRACTICAL)
Donor: KASNEB HELLEN MUTHONI MWAURA ICT/6182
PRINCIPLES OF MANAGEMENT Donor: KASNEB TONNY WAMULA MASAWI
(COMMON PAPER) Donor: KASNEB
BEST OVERALL IN A LEVEL
ATC/166543
COMPUTER NETWORKING
DOMINIC KYALO YAKI ATC LEVEL I
ICT/6203
Donor: KASNEB ATC/170988
NICHOLAS KIPRONO TOO
TINA MBEYU MUSYOKI
BUSINESS MATHEMATICS Donor: KASNEB
Donor: KASNEB
(COMMON PAPER)
ATC/166114 ATC LEVEL II ICTT - LEVEL II
VICTOR OUKO AGWANDA ATC/167354 INTERNET SKILLS
Donor: KASNEB ROBERT KIPKORIR KEMBOI ICT/6169
Donor: KASNEB MERCYLINE ACHIENG OKELLO
ATC - LEVEL II
Donor: KASNEB
FINANCIAL ACCOUNTING INFORMATION COMMUNICATION
COMPUTER SUPPORT AND
ATC/166701 TECHNOLOGY TECHNICIANS
MAINTENANCE
JOEL KURIA NJUGUNA (ICTT) EXAMINATION
ICT/6167
Donor: KASNEB
ICTT - LEVEL I KEVIN ODERO ODHIAMBO
FUNDAMENTALS OF INFORMATION Donor: KASNEB
INTRODUCTION TO COMPUTING
COMMUNICATION TECHNOLOGY
ICT/6203 PROGRAMMING CONCEPTS
(COMMON PAPER)
NICHOLAS KIPRONO TOO ICT/5214
ATC/167250
Donor: KASNEB HANNAH NJOKI MUCHUCHA
RACHEAL KAMWENDE NGUGI
Donor: KASNEB
Donor: KASNEB

PRIZE WINNERS
FOUNDATIONS OF ACCOUNTING CMT - LEVEL II ENTREPRENEURSHIP AND
(COMMON PAPER) COMMUNICATION
ECONOMICS
ICT/6151 (COMMON PAPER)
(COMMON PAPER)
CYNTHIA SYLVIA OKUSIMBA ATD/1468
CMT/1044
Donor: KASNEB DOREEN SOITA MUHANDO
DRAKE AKOYA SINGA
Donor: KASNEB
INFORMATION SYSTEMS Donor: KASNEB
ICT/6167 INFORMATION COMMUNICATION
MARKETING AND CUSTOMER
KEVIN ODERO ODHIAMBO TECHNOLOGY
RELATIONS
Donor: KASNEB (COMMON PAPER)
CMT/1094
ATD/254
DICKSON MUKABURU GATHURA
BEST OVERALL IN A LEVEL DANIEL ONYANGO ODUK
Donor: KASNEB
ICTT LEVEL I Donor: KASNEB
LAW GOVERNING CREDIT
ICT/6333
PRACTICE ATD - LEVEL II
JACKLINE NALIAKA MURIANI
CMT/1044
Donor: KASNEB FINANCIAL ACCOUNTING
DRAKE AKOYA SINGA
ATD/2806
ICTT LEVEL II Donor: KASNEB
LORNA KERUBO
ICT/6151
Donor: KASNEB
CYNTHIA SYLVIA OKUSIMBA BEST OVERALL IN A LEVEL
Donor: KASNEB PRINCIPLES OF MANAGEMENT
CMT LEVEL II
(COMMON PAPER)
CMT/1044
INVESTMENT AND SECURITIES ATD/895
DRAKE AKOYA SINGA
TECHNICIANS (IST) EXAMINATION JACKLINE WANJA KABURU
Donor: KASNEB
Donor: KASNEB
IST - LEVEL I
DIPLOMA RUNNER UP
FINANCE AND INVESTMENTS EXAMINATIONS
IST/323 PRINCIPLES OF MANAGEMENT
CALVIN KIMUCHOSI MAUKA ACCOUNTING TECHNICIANS (COMMON PAPER)
Donor: KASNEB DIPLOMA (ATD) EXAMINATION ATD/3229
SIMON KAMAU KARUMA
LAW AND REGULATIONS GOVERNING
ATD - LEVEL I Donor: KASNEB
FINANCIAL MARKETS
IST/323 INTRODUCTION TO FINANCIAL BUSINESS MATHEMATICS AND
CALVIN KIMUCHOSI MAUKA ACCOUNTING STATISTICS
Donor: KASNEB ATD/1544 (COMMON PAPER)
ROSEMARY WANJA MWIGE ATD/409
CREDIT MANAGEMENT TECHNICIANS Donor: KASNEB JOSEPH KATEE MALUKI
(CMT) EXAMINATION Donor: KASNEB
RUNNER UP
FUNDAMENTALS OF FINANCE
CMT - LEVEL I
INTRODUCTION TO FINANCIAL ATD/2542
FUNDAMENTALS OF CREDIT ACCOUNTING STEPHEN OKOTH OWINO
MANAGEMENT ATD/9717 Donor: KASNEB
CMT/1090 EMMACULATE MORAA MOGAKA
DORCAS JELAGAT KIMARU Donor: KASNEB RUNNER UP
Donor: KASNEB
COMMERCIAL LAW FUNDAMENTALS OF FINANCE
(COMMON PAPER) ATD/2343
ATD/416 YONGA MANGALE
CHARITY WAIRIMU MWANGI Donor: KASNEB
Donor: KASNEB

PRIZE WINNERS
BEST OVERALL IN A LEVEL PROGRAMMING CONCEPTS PROFESSIONAL
ATD LEVEL I
DIC/5 EXAMINATIONS
ATD/2937 BONFACE SHIAKWILA LUMITI
SAMWEL RIOBA OKEROSI Donor: KASNEB CERTIFIED PUBLIC ACCOUNTANTS (CPA)
Donor: KASNEB EXAMINATION
ATD LEVEL II
ATD/3089 DICT LEVEL I CPA PART I – SECTION 1
DENNIS MUNYAO WAMBUA DIC/6 FINANCIAL ACCOUNTING
Donor: KASNEB SAMWEL OTIENO OUMA (COMMON PAPER)
Donor: KASNEB NAC/222340
RUNNER UP
DICT LEVEL II MARTIN NYAKUNDI NYAIGOTI
ATD LEVEL II DIC/55 Donor: ERNST & YOUNG
ATD/9208
JOB KANYIRI NJORA COMMERCIAL LAW
VICTOR MUTUNGWA MULI
Donor: KASNEB (COMMON PAPER)
Donor: KASNEB
NAC/263178
DIPLOMA IN CREDIT PATRICK KIOKO MUSYOKA
DIPLOMA IN INFORMATION
COMMUNICATION MANAGEMENT (DCM) Donor: KINYORI & ASSOCIATES
TECHNOLOGY (DICT) EXAMINATION EXAMINATION
ENTREPRENEURSHIP AND
DICT - LEVEL I DCM - LEVEL I COMMUNICATION
(COMMON PAPER)
INTRODUCTION TO COMPUTING FUNDAMENTALS OF CREDIT
NAC/261890
DIC/6 MANAGEMENT
MILLICENT KALULU WILLY
SAMWEL OTIENO OUMA DCM/24
Donor: KING’ANG’I KAMAU & COMPANY
Donor: KASNEB ISABEL ACHIENG OLUOKO
CERTIFIED PUBLIC ACCOUNTANTS
COMPUTER MATHEMATICS Donor: KASNEB
DIC/128 CPA PART I – SECTION 2
VIVEK VILESH CHOHAN DCM - LEVEL II
Donor: KASNEB ECONOMICS
CREDIT MANAGEMENT
(COMMON PAPER)
COMPUTER APPLICATIONS DCM/33
NAC/256824
PRACTICAL I MICHAEL NYENDO TELEWA
MARK MACKENZIE MUTISYA
DIC/6 Donor: KASNEB
Donor: WACHIRA IRUNGU & ASSOCIATES
SAMWEL OTIENO OUMA
LAW GOVERNING CREDIT
Donor: KASNEB MANAGEMENT ACCOUNTING
PRACTICE
NAC/265975
DICT - LEVEL II DCM/33
MESHACK MUTIE NGUI
MICHAEL NYENDO TELEWA
COMPUTER NETWORKING Donor: MUGO & COMPANY CERTIFIED
Donor: KASNEB
DIC/55 PUBLIC ACCOUNTANTS
JOB KANYIRI NJORA
Donor: KASNEB BEST OVERALL IN SECTION (S)
DCM LEVEL I
INTERNET SKILLS SECTION 1 ONLY
DIC/55 DCM/24
NAC/263178
JOB KANYIRI NJORA ISABEL ACHIENG OLUOKO
PATRICK KIOKO MUSYOKA
Donor: KASNEB Donor: KASNEB
Donor: RSM ASHVIR
COMPUTER SUPPORT AND DCM LEVEL II
SECTION 2 ONLY
MAINTENANCE DCM/33
NAC/258536
DIC/84 MICHAEL NYENDO TELEWA
EVANS OOKO AKATCH
MARY NZULA MWEU Donor: KASNEB
Donor: KASNEB Donor: RSM ASHVIR

PRIZE WINNERS
SECTIONS 1 AND 2 (COMBINED) QUANTITATIVE ANALYSIS RUNNER UP (1)
NAC/257998 (COMMON PAPER)
ADVANCED MANAGEMENT
DEBORAH NTHOKI MUINDI NAC/242990
ACCOUNTING
Donor: RSM ASHVIR RONO KIMUTAI VICTOR
NAC/241864
Donor: MHASIBU SACCO LIMITED
CPA PART II – SECTION 3 DOUGLAS RUTTO KIPROTICH
BEST OVERALL IN SECTION (S) Donor: KASNEB
COMPANY LAW
(COMMON PAPER) SECTION 3 ONLY RUNNER UP (2)
NAC/243804 NAC/232120 ADVANCED MANAGEMENT
AGNES WANJIKU KIBARA YVES ISHIMWE DARAFU ACCOUNTING
Donor: KASNEB Donor: MAZARS CERTIFIED PUBLIC NAC/220725
ACCOUNTANTS (KENYA) JOYCE NYAMBIA KAROBIA
RUNNER UP
Donor: KASNEB
COMPANY LAW RUNNER UP
(COMMON PAPER) ADVANCED FINANCIAL MANAGEMENT
SECTION 3 ONLY
NAC/230777 NAC/173065
NAC/259678
NELLY MWENDWA KIRIMI ANNA KATAA KATIWA
JACOB MUKUNDI KARIUKI
Donor: KASNEB Donor: DELOITTE & TOUCHE
Donor: KASNEB
FINANCIAL MANAGEMENT SECTION 4 ONLY CPA PART III – SECTION 6
(COMMON PAPER) NAC/251256 ADVANCED PUBLIC FINANCE AND
NAC/232120 JESCA ALICE NABIRYE TAXATION
YVES ISHIMWE DARAFU Donor: H. W. GICHOHI & COMPANY NAC/198759
Donor: KIGO NJENGA & COMPANY
SECTIONS 3 AND 4 (COMBINED) JOHN KIGURU MBUGUA
CERTIFIED PUBLIC ACCOUNTANTS (KENYA)
NAC/250618 Donor: PKF KENYA
RUNNER UP JUSTUS KYALO MANYALA ADVANCED AUDITING AND
Donor: MBAYA & ASSOCIATES ASSURANCE
FINANCIAL MANAGEMENT
NAC/230608
(COMMON PAPER) CPA PART III – SECTION 5
NAC/240033 CECILIA WAYUA SYANO
BILLY ODHIAMBO OCHIENG RUNNER UP (2) Donor: MR. DANIEL M. NDONYE
Donor: KASNEB ADVANCED FINANCIAL REPORTING
STRATEGY, GOVERNANCE AND
NAC/179861
FINANCIAL REPORTING ETHICS (COMMON PAPER)
NAC/256979 NAC/90574 RUTTO ALEX
VELMA ACHIENG OMONDI JOSEPH MUKANGA KARIUKI Donor: MURDOCH McCRAE & SMITH
Donor: PRICEWATERHOUSE COOPERS Donor: KASNEB
BEST OVERALL IN SECTION (S)
CERTIFIED PUBLIC ACCOUNTANTS
RUNNER UP (3) SECTION 5 ONLY
CPA PART II – SECTION 4 NAC/235202
GEORGE NJUGUNA NJUBI
AUDITING AND ASSURANCE ETHICS (COMMON PAPER)
NAC/234689 NAC/242617 Donor: INSTITUTE OF CERTIFIED PUBLIC
RODGERS KALOKI MUTUA JUDITH NDETO MUSAU ACCOUNTANTS OF KENYA (ICPAK)
Donor: CARR STANYER GITAU & COMPANY Donor: KASNEB SECTION 6 ONLY
NAC/198759
MANAGEMENT INFORMATION ADVANCED MANAGEMENT
JOHN KIGURU MBUGUA
SYSTEMS (COMMON PAPER) ACCOUNTING
NAC/265416 NAC/236676 Donor: FIDELITY INSURANCE COMPANY
IMMACULATE ATIENO AGENG’A TERESIA MBUTHIA LIMITED
Donor: DELOITTE & TOUCHE Donor: KPMG KENYA

PRIZE WINNERS
SECTIONS 5 AND 6 (COMBINED) SECTION 2 ONLY SECTIONS 3 AND 4 (COMBINED)
NAC/238039 NSC/262652 NSC/217095
SYLVAIN NSABIMANA SAMWEL MACHARIA KARANJA VICTOR MUTHOKA WAMBUA
Donor: INSTITUTE OF CERTIFIED PUBLIC Donor: KASNEB Donor: SACCO SOCIETIES
ACCOUNTANTS OF KENYA (ICPAK) REGULATORY AUTHORITY (SASRA)
SECTIONS 1 AND 2 (COMBINED)
NSC/262652
BEST LADY GRADUATE CS PART III – SECTION 5
NAC/174456 SAMWEL MACHARIA KARANJA
Donor: KASNEB HUMAN RESOURCE
MARY MUGURE KUNG’U
MANAGEMENT
Donor: ASSOCIATION OF WOMEN
CS PART II – SECTION 3 NSC/257341
ACCOUNTANTS OF KENYA (AWAK)
COMPANY LAW MOHAMED NOOR HASSAN
(CS only) Donor: SAVANNA & ASSOCIATES
CERTIFIED SECRETARIES (CS)
NSC/173690
EXAMINATION RUNNER UP
ANTHONY KARANJA MAINA
CS PART I – SECTION 1 Donor: AFRICA REGISTRARS HUMAN RESOURCE
CERTIFIED PUBLIC SECRETARIES MANAGEMENT
ORGANISATIONAL BEHAVIOUR NSC/217456
NSC/253863 PRINCIPLES AND PRACTICE OF
KENNEDY ONDIEK OSORE
DOROTHY KANYUA NJERU MANAGEMENT
Donor: KASNEB
Donor: PARKER RANDALL NSC/251298
SAMUEL OMBOKE NYABUTE FINANCIAL MARKETS LAW
BUSINESS COMMUNICATION NSC/241394
Donor: KASNEB
NSC/260032
OYOLO JANESYLVIA ANGUBA
MARTIN WEKESA MABONGA CS PART II – SECTION 4 Donor: KASNEB
Donor: VISION INSTITUTE OF
CORPORATE SECRETARIAL GOVERNANCE AND ETHICS
PROFESSIONALS
PRACTICE NSC/203878
CS PART I – SECTION 2 NSC/264306 FRIDAH MUMBUA MUSAU
MIKE OGERA MARERI Donor: KIMANI KERRETS &
PRINCIPLES OF ACCOUNTING
Donor: NGURU MUREGI & COMPANY
(COMMON PAPER)
ASSOCIATES
NSC/262652
RUNNER UP
SAMWEL MACHARIA KARANJA LAW AND PROCEDURE OF
Donor: KINYORI & ASSOCIATES MEETINGS GOVERNANCE AND ETHICS
NSC/252500 NSC/251491
PUBLIC FINANCE AND TAXATION
ZAHRA RINAH NECHESA JOSEPH MUCHINAH GITAU
(COMMON PAPER)
Donor: QUANTUM REGISTRARS Donor: KASNEB
NSC/262652
SAMWEL MACHARIA KARANJA CS PART III – SECTION 6
BEST OVERALL IN SECTION (S)
Donor: PKF KENYA
SECTION 3 ONLY STRATEGIC MANAGEMENT
BEST OVERALL IN SECTION (S) NSC/255227 NSC/248309
LILIAN JEPLETING KOECH JACOB OLUOCH MINIGA
SECTION 1 ONLY
NSC/253863
DOROTHY KANYUA NJERU SECTION 4 ONLY PUBLIC POLICY AND
Donor: INSTITUTE OF CERTIFIED PUBLIC NSC/252500 ADMINISTRATION
ZAHRA RINAH NECHESA NSC/237578
SECRETARIES OF KENYA (ICPSK)
Donor: KASNEB CONSOLATA MWIKALI VUNDI
Donor: KASNEB

PRIZE WINNERS
GOVERNANCE AND COMPUTER SUPPORT AND WEB DESIGN AND E-COMMERCE
SECRETARIAL AUDIT MAINTENANCE CTP/1811
NSC/209849 CTP/2745 JOHN MUTHUA MUMBI
BENJAMIN BETT CHERUIYOT ERIC KIOKO MUOKA Donor: KASNEB
Donor: H.W. GICHOHI & COMPANY Donor: KASNEB
DATA COMMUNICATION AND
BEST OVERALL IN SECTION (S) BEST OVERALL IN SECTION (S) COMPUTER NETWORKS – PRACTICAL
CTP/2580
SECTION 5 ONLY
SECTION 1 ONLY DAVID CHOMBA KIMANI
NSC/257341
CTP/2193 Donor: KASNEB
MOHAMED NOOR HASSAN
ERICK KIMINZA MAKAU
Donor: INSTITUTE OF CERTIFIED PUBLIC BEST OVERALL IN SECTION (S)
Donor: KASNEB
SECRETARIES OF KENYA (ICPSK)
SECTION 3 ONLY
SECTION 6 ONLY RUNNER UP
CTP/2336
NSC/209849 SECTION 1 ONLY PAUL MBUGUA WAINAINA
BENJAMIN BETT CHERUIYOT CTP/2745 Donor: KASNEB
Donor: AXIS KENYA ERIC KIOKO MUOKA
SECTION 4 ONLY
SECTIONS 5 AND 6 (COMBINED) Donor: KASNEB
CTP/2200
NSC/250746 SECTION 2 ONLY ALBERT MMBOYI MUHATIA
JAMES KINOTI KIRERA CTP/2668 Donor: KASNEB
Donor: KPMG KENYA BENJAMIN MAINGI MUTHONI
Donor: KASNEB
BEST LADY GRADUATE CTP/2580
NSC/237578 SECTIONS 1 AND 2 (COMBINED) DAVID CHOMBA KIMANI
CONSOLATA MWIKALI VUNDI CTP/2745 Donor: KASNEB
Donor: WOMEN ON BOARDS ERIC KIOKO MUOKA
Donor: KASNEB CICT PART III - SECTION 5
NETWORK KENYA
SOFTWARE ENGINEERING
CICT PART II - SECTION 3
CERTIFIED INFORMATION CTP/2077
DATABASE SYSTEMS OBADIAH KIMWETICH CHESIRE
COMMUNICATION TECHNOLOGISTS
CTP/2572 Donor: KASNEB
(CICT) EXAMINATION
DANIEL KITHUKA NZAU
MOBILE APPLICATION DEVELOPMENT
CICT PART I - SECTION 1 Donor: KASNEB
CTP/2133
INTRODUCTION TO COMPUTING SYSTEM ANALYSIS AND DESIGN TEBLON MONG’INA ONDIMU
CTP/2668 CTP/2179 Donor: KASNEB
BENJAMIN MAINGI MUTHONI DANIEL NYANGWONO OMERI
Donor: KASNEB CICT PART III – SECTION 6
Donor: KASNEB
STRUCTURED PROGRAMMING SYSTEMS SECURITY
COMPUTER APPLICATIONS –
CTP/2148 CTP/1716
PRACTICAL
KENNETH MACHARIA WANGUI JOHN KAMAU IBARE
CTP/2193
ERICK KIMINZA MAKAU
Donor: KASNEB INFORMATION SYSTEMS PROJECT
CICT PART II - SECTION 4
MANAGEMENT
CICT PART I - SECTION 2 OBJECT ORIENTED CTP/1716
OPERATING SYSTEMS – PRACTICAL PROGRAMMING JOHN KAMAU IBARE
CTP/2438 CTP/2200 Donor: KASNEB
WINFRED WAIRIMU MURIUKI ALBERT MMBOYI MUHATIA

PRIZE WINNERS
RESEARCH METHODS BEST OVERALL IN SECTION (S) BEST OVERALL IN SECTION (S)
CTP/2257
DAVID BAIYA MWATHI SECTION 1 ONLY SECTION 3 ONLY
Donor: KASNEB ISP/4746 ISP/4398
ICT PROJECT DEVONA NYARONGO SIKEBU FLORENCE WANGARI WAHINYA
CTP/1515 Donor: KASNEB Donor: STAR COLLEGE OF MANAGEMENT
MARK ONGORO OLANG’O STUDIES
SECTION 2 ONLY
Donor: KASNEB
ISP/4354 SECTION 4 ONLY
BEST OVERALL IN SECTION (S) FRANCIS KARIMI WACERA ISP/4487
SECTION 5 ONLY Donor: KASNEB MILLER SAMMY OCHIENG’
CTP/1548 Donor: STAR COLLEGE OF MANAGEMENT
MWENDWA BRIAN KIMONDIU STUDIES
ISP/4703
Donor: KASNEB
VIVIAN MUTHONI MURIGI SECTIONS 3 AND 4 (COMBINED)
SECTION 6 ONLY Donor: INSTITUTE OF ISP/3974
CTP/1716
CERTIFIED INVESTMENT AND JOAN JEBIWOTT KEMBOI
JOHN KAMAU IBARE
Donor: KASNEB FINANCIAL ANALYSTS (ICIFA) Donor: INSTITUTE OF CERTIFIED
INVESTMENT AND FINANCIAL
RUNNER UP CIFA PART II – SECTION 3 ANALYSTS (ICIFA)
SECTION 6 ONLY REGULATION OF FINANCIAL
CTP/2257 CIFA PART III – SECTION 5
MARKETS
DAVID BAIYA MWATHI ISP/4277 FIXED INCOME INVESTMENTS
Donor: KASNEB
DANSON IRUNGU KARIUKI ANALYSIS
SECTIONS 5 AND 6 (COMBINED) Donor: KASNEB ISP/2626
CTP/2257 SAMUEL NGUGI KANYI
DAVID BAIYA MWATHI CORPORATE FINANCE
Donor: KASNEB
Donor: KASNEB ISP/4100
DANIEL KAMONGO NJOGU ALTERNATIVE INVESTMENTS ANALYSIS
BEST LADY GRADUATE
Donor: KASNEB ISP/2626
CTP/550
SAMUEL NGUGI KANYI
CHARITY KARIMI MUGENDI FINANCIAL STATEMENTS
Donor: DR. JONAH K. AIYABEI
Donor: KASNEB ANALYSIS
ISP/4252
CIFA PART III – SECTION 6
CERTIFIED INVESTMENT AND JOSEPH MWANIKI LEMEREU
Donor: PROF. JOSIAH ADUDA ADVANCED PORTFOLIO MANAGEMENT
FINANCIAL ANALYSTS (CIFA)
ISP/3124
EXAMINATION
CIFA PART II – SECTION 4 ELIZABETH WANJUGU WAIRIMU
CIFA PART I – SECTION 1 Donor: DR. GEORGE O. WAKAH
EQUITY INVESTMENTS
FINANCIAL MATHEMATICS ANALYSIS INTERNATIONAL FINANCE
ISP/4746 ISP/4453 ISP/3790
DEVONA NYARONGO SIKEBU
ALEX MOKAYA MOMANYI JOSHUA KILONZO MUTUKU
Donor: KASNEB
CIFA PART I – SECTION 2 PORTFOLIO MANAGEMENT DERIVATIVES ANALYSIS
FINANCIAL INSTITUTIONS AND ISP/4487 ISP/3211
MARKETS MILLER SAMMY OCHIENG’ JOSPHAT NGUNDO MURIUKI
ISP/4636
MOSES MWENDA ANANGA
Donor: KASNEB

PRIZE WINNERS
BEST OVERALL IN SECTION (S) CCP PART II – SECTION 3 CREDIT MANAGEMENT IN THE
FINANCIAL SECTOR
SECTION 5 ONLY MARKETING AND PUBLIC
CCP/2089
ISP/2626 RELATIONS
JAMES KAMAU UGI
SAMUEL NGUGI KANYI CCP/2182
Donor: INSTITUTE OF CREDIT
Donor: INSTITUTE OF CERTIFIED PATRICK KIAMBATI MWIRICHIA
MANAGEMENT (ICM)
INVESTMENT AND FINANCIAL ANALYSTS Donor: KASNEB
SECTION 6 ONLY CCP PART III – SECTION 6

CCP PART II – SECTION 4
ISP/3211
DEBT RECOVERY
JOSPHAT NGUNDO MURIUKI LAW GOVERNING CREDIT
CCP/2066
Donor: INSTITUTE OF CERTIFIED PRACTICE
PATRICK WANDETO MURAGURI
CCP/2124
INVESTMENT AND FINANCIAL ANALYSTS Donor: KASNEB
CAROLINE KOKI KISAULU
(ICIFA)
Donor: KASNEB CORPORATE LENDING
SECTIONS 5 AND 6 (COMBINED) CCP/1541
ISP/2593 BEST OVERALL IN SECTION (S) JOHNSON HENRY RANDU
CONSTANTINE GATHOGO MUNGAI KASNEB
SECTION 3 ONLY
Donor: DR. GEORGE O. WAKAH
CCP/2124
CREDIT PRACTICE
CAROLINE KOKI KISAULU CCP/2066
BEST LADY GRADUATE
ISP/2690 Donor: KASNEB PATRICK WANDETO MURAGURI
LUCY WANJIKU KIBUTHI SECTION 4 ONLY Donor: KASNEB
Donor: STAR COLLEGE OF CCP/1891
MANAGEMENT STUDIES BEST OVERALL IN SECTION (S)
LUCY WAIRIMU RICHU
Donor: KASNEB SECTION 5 ONLY
CERTIFIED CREDIT PROFESSIONALS CCP/2108
(CCP) EXAMINATION ESTHER WANGECHI MURIUKI
CCP/1891
Donor: KASNEB
LUCY WAIRIMU RICHU
CCP PART I – SECTION 1
Donor: KASNEB SECTION 6 ONLY
CREDIT MANAGEMENT CCP/1541
CCP/2291 CCP PART III – SECTION 5 JOHNSON HENRY RANDU
BETHWEL WESONGA NYARANGA STRATEGY, GOVERNANCE AND Donor: KASNEB
Donor: INSTITUTE OF CREDIT ETHICS (COMMON PAPER) SECTIONS 5 AND 6 (COMBINED)
MANAGEMENT (ICM) CCP/2108 CCP/2129
ESTHER WANGECHI MURIUKI PETER NDERITU GITHAIGA
BEST OVERALL IN SECTION (S) Donor: KPMG KENYA Donor: SACCO SOCIETIES REGULATORY
SECTION 1 ONLY AUTHORITY (SASRA)
CCP/2255 RUNNER UP
WILLIAM MOMANYI KEGICHA
Donor: KASNEB
ETHICS(COMMON PAPER)
Once
SECTION 2 ONLY
CCP/2151 you have experienced
CCP/2255
WILLIAM MOMANYI KEGICHA
NAHASHOWN THEURI MUSHANGI
Donor: KASNEB
EXCELLENCE
Donor: KASNEB BANKING LAW AND PRACTICE you will
CCP/877
ALOUISE OBOLL NG’ONG’A
never again
CCP/2255
WILLIAM MOMANYI KEGICHA Donor: KASNEB be content with
Donor: KASNEB mediocrity
Thomas S. Monson

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KASNEB

EDUCATIVE INFORMATIVE ENTERTAINING

TOPICS EMERGING ISSUES IN PORTFOLIO

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CONTRIBUTORS TO THIS ISSUE

Raymond Kiambati Kellen Kiambati Charles O. Owuor Joseph G. Muthama Samuel

Welcome and enjoy your reading.

2 KASNEB NEWSLINE, Issue No. 2, April - June 2016

KASNEB NEWSLINE, Issue No. 2, April - June 2016 3

4 KASNEB NEWSLINE, Issue No. 2, April - June 2016

Another expected change in HC

KASNEB NEWSLINE, Issue No. 2, April - June 2016 5

Training and development is another

Another major challenge is how

6 KASNEB NEWSLINE, Issue No. 2, April - June 2016

In order to effectively deal with

• The added value of the HC

KASNEB NEWSLINE, Issue No. 2, April - June 2016 7

The future role of HC professionals

8 KASNEB NEWSLINE, Issue No. 2, April - June 2016

Employers that are able to overcome

D As firms reach out to a broader

Effective management of diversity

KASNEB NEWSLINE, Issue No. 2, April - June 2016 9

Challenges posed by a diverse

evaluating them, and making decisions

10 KASNEB NEWSLINE, Issue No. 2, April - June 2016

status more positively than those with

KASNEB NEWSLINE, Issue No. 2, April - June 2016 11

related initiatives and top managers and differing perspectives of diverse

Productivity in organisations a role model for behaviour required

12 KASNEB NEWSLINE, Issue No. 2, April - June 2016

7. Change culture and

Change the performance appraisal

8. Consider the numbers

Am not surprised. Performance Mentoring is a process by which an

KASNEB NEWSLINE, Issue No. 2, April - June 2016 13

14 KASNEB NEWSLINE, Issue No. 2, April - June 2016

and job security are tHCeatened. Equal Need to address diversity

Some differences in employees affecting Simone(2006), there is need to Conclusion

Therefore, there is a strong ethical imperative

KASNEB NEWSLINE, Issue No. 2, April - June 2016 15

EDUCATIVE INFORMATIVE ENTERTAINING

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