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THURSDAY, OCTOBER 1, 2015

NO. 2195

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Constuction dip pulls down


second quate gowth to 5.5pc
TSC chief executive ofcer Nancy
Macharia. FILE

TSC out to
hie 70,000
teaches fo
thee months
BY BD TEAM

The government intends to hire


70,000 relief teachers to minimise
disruption of learning in public
schools caused by the ongoing
strike.
Recruitment of the relief tutors comes at a time when the
government is embroiled in legal
battles with the teachers over a
pay dispute.
In a notice dated September
29, the Teachers Service Commission (TSC) is calling on primary and secondary tutors to apply for jobs.
TSC chief executive Nancy Macharia called on registered teachers aged below 45 years to submit
their applications for the positions
before Monday, October 5.
Out of the intended recruitment of 70,000 relief teachers
sought
by TEACHERS, Page 4

Analysts say the


performance
makes it hard
for economy to
realise Treasurys
6.5 to 7 per cent
annual target
AGRICULTURE

BY NEVILLE OTUKI

Economic growth slowed down in the


second quarter of the year, shackled by
the near halving of activity in the key construction and manufacturing sectors in
the wake of persistent exchange rate turbulence and the resulting rise in the cost
of imported goods.
Ocial data released yesterday shows
that the economy grew by 5.5 per cent
between April and June, down from the
6 per cent growth reported for the same
period last year.

MANUFACTURING

NEWS INDEPTH

5.4%
Pages 12-13

2014

2015

4.6

10.2

16.6

9.9

Transport/
communication

5.7

6.2

Financial

7.9

Electricity
Construction

Agriculture

2.1

5.4

Manufacturing

8.3

4.5
SOURCE: KNBS

CONSTRUCTION

9.9%

The performance, which analysts


said had exceeded their expectations,
was, however, still better than the 4.9
per cent recorded in the rst quarter
of the year.
This is denitely better than I expected, said Aly-Khan Satchu, an independent analyst who runs Nairobi-based data
vending rm Rich Management. It is a
good outcome in light of the prevailing
climate that is underlain by turbulent exchange rate and rising interest rates.
Mr Satchu, however, said that at 5.5 ECONOMY, Page4

TOURISM

0.8%

British soldiers to be
tried locally in new deal

Del Monte pay pact


lifts wage bill by Sh61m

Firms have 30 days to


remit unclaimed assets

Safaricom Sacco plans


sale of Sh1bn shares

President Uhuru Kenyatta has


won a major concession from
the UK with a new military deal
that allows British soldiers who
commit crimes while in Kenya to
be tried locally. Page 5

Del Monte Kenya is facing a


higher wage bill after signing
a pay raise deal with workers
of between nine and seven per
cent, in addition to improved
allowances. Page 7

The Unclaimed Financial Assets


Authority has given companies
holding unclaimed assets a
month to submit them to the
government or be penalised.

Safaricom Sacco is seeking to


raise Sh1 billion through the sale
of shares to members to raise
funds for real estate investments
and grow its revenue base.

Page 19

Page 20

BRIEFING

Why the US hides 700


million barrels of oil
underground

4.5%

Growth in key sectors in the


second quarter (%)

BUSINESS DAILY | Thursday October 1, 2015

TOP NEWS

Judicial Sevice in
pomotions ow
with cout wokes

New pact

LABOUR Union says 475 employees are

affected by cancellation of new appointments


would aect employees interviewed in
April for promotions.
A fresh labour dispute is brewing in
The JSC says in the memo that it
the judicial arm of government where
would consider a few cross-departnearly 500 sta members have diered
mental transfers, but those aected
with their employer, the Judicial Servwould remain in the same pay grade
ice Commission (JSC), over cancellation
as their current positions.
of promotions that had been awarded
Employees have opposed the directive, arguing that it renders academic
in April.
The dispute has its roots in the JSCs
qualications they have since attained
publication of a notice on August 19,
redundant.
cancelling the cross-departmental proQualications for promotions within
motions that were granted to 475 emdepartments require employees to have
attained new qualication
ployees early in the year.
in the relevant discipline.
Employees who have
Clerical ocers would, for
worked in the courts for
at least three years and at- We ae consulting instance, only be promoted
tained additional academ- ou membes to after taking classes in proic qualications since they see what action to ciency.
were employed qualify for
Mr Sango said the untake next
ions members had opappraisal and promotion.
posed the guidelines, but
The JSC has recently
SANGO MAEWA
introduced a raft of guide- CHAIRMAN, KENYA JUDICIARY insisted it was too soon take
any action.
lines on sta assessment
STAFF ASSOCIATION
He, however, did not
and promotions, including a stop to cross-departrule out a strike or legal
mental movements thus
action against the JSC for
freezing sta advancement.
ignoring interviews that were done
The Kenya Judiciary Sta Assoin April.
ciations (KJSA) attempt to reach a neJSC commissioners conducted the
gotiated settlement with the JSC has
interviews and released a 74-page reopped, pushing the employees down
port, seen by the Business Daily, that
the strike path
recommends hundreds of employees
Our members have raised the isfor promotion. The interim report is,
however, yet to be signed by the 11 comsue with us and we have written to the
JSC seeking clarication. We are awaitmissioners.
ing a response from the JSC while also
Any ocer currently undertaking
further studies or training should notify
consulting our members to see what
my oce of the training and study being
action to take next, KJSA chairman
undertaken for purposes of ensuring
Sango Maewa said.
that the training is relevant to their perJudiciary Chief Registrar Anne
formance in the Judiciary and is being
Amadi did not return our phone calls
oered by a recognised institution, Ms
or reply to messages sent to her on the
Amadi says in a memo.
dispute. The August memo sent to all
bwasuna@ke.nationmedia.com
Judiciary sta said the new guidelines
BY BRIAN WASUNA

Nairobi

Kenya National Chamber of Commerce and Industrys economic diplomacy committee


chairman James Mureu (right) and the Kenya-Australian Chamber of Commerce chairman
Stephen Kuria during the signing of an MoU between the two organisations at the Serena Hotel yesterday. DIANA NGILA

MP wants House to pobe Waki epot claims


BY EDWIN MUTAI

A select committee will be formed to


look into allegations of skewed and
compromised investigations by
various government and non-State
agencies during the 2007 post-election violence if Parliament approves
a motion led by Ainabkoi MP Samuel Chepkonga.
If approved, Parliament may get
another opportunity to discuss the
report of the Commission of Inquiry
into the 2007/08 post-election violence, popularly known as the Waki
report, that was tabled in the House
in 2008 but never acted upon.
Mr Chepkonga, who chairs the
Justice and Legal Aairs Committee,
has written to Speaker of the National
Assembly Justin Muturi seeking to
establish the probe team.
The Waki report, which has since

Monday

Tuesday

Wednesday

Thursday

This index of businesses mentioned in todays issue of the Business Daily is intended to
include all signicant references to companies.

Friday

Nairobi

Hi: 250C
Lo: 140C

Hi: 210C
Lo: 130C

Hi: 220C
Lo: 140C

Hi: 230C
Lo: 130C

Hi: 220C
Lo: 130C

Kampala

Hi: 26 C
Lo: 150C

Hi: 25 C
Lo: 120C

Hi: 25 C
Lo: 120C

Hi: 26 C
Lo: 140C

Hi: 26 C
Lo: 130C

Dar-es-Salaam

Hi: 300C
Lo: 190C

Hi: 280C
Lo: 220C

Hi: 280C
Lo: 220C

Hi: 290C
Lo: 220C

Hi: 290C
Lo: 230C

businessdailyafrica

Kigali

Hi: 25 C
Lo: 160C

Hi: 27 C
Lo: 120C

Hi: 27 C
Lo: 130C

Hi: 27 C
Lo: 140C

Hi: 27 C
Lo: 140C

BD_Africa

Bujumbura

Hi: 300C
Lo: 170C

Hi: 310C
Lo: 150C

Hi: 310C
Lo: 140C

Hi: 310C
Lo: 140C

Hi: 300C
Lo: 150C

www.businessdailyafrica.com

Follow your favourite


stories online, plus more on
markets, industry, policy and
agribusiness

FIND US ON FACE BOOK & TWITTER

make their closing submissions. Mr


Ruto and Sang have led an appeal
against the use of ve recanted witness statements by the prosecutor .
Aware that following the 2007
post-election violence, various state
and non-state agencies carried out
independent investigations, either
on their own of in the exercise of
their statutory functions.some of
those agencies, including the Waki
commission either submitted or
publicised their ndings and or reports which are yet to be discussed
by the National Assembly, Mr Chepkonga said.
He said there have been concerns
over possible compromise and allegations that some of the witnesses
who testied before the presidential
commission of inquiry into the violence and other agencies may have
been procured.

Index to companies

Weekly Weather Forecast


East Africa

been adopted as part of the evidence


in a case facing Deputy President
William Ruto and former journalist
Joshua arap Sang at The Hague, is
yet to be discussed and adopted by
the National Assembly.
Mr Ruto and Sang are facing
crimes against humanity charges
at the International Criminal Court
(ICC).
The charges arose from the violence that followed announcement
of the presidential election results
in 2007 where former president
Mwai Kibaki was declared winner
over former prime minister Raila
Odinga.
Over 1,133 Kenyans died in the violence and another 650,000 were displaced from their homes. ICC prosecutor Fatuo Bensauda closed her case
against the two this month.
Defence lawyers are expected to

KPC..................................6

MTN................................17

UFAA.............................. 19

Del-Monte ...................... 7

PS .................................. 18

KBA................................ 19

Yahoo.............................11

LG .................................. 18

NSE................................ 19

Alibaba...........................11

Apple............................. 18

CMA ..............................20

Longhorn ...................... 16

GoPro ............................ 18

Safaricom.....................20

Simbapay...................... 16

HP.................................. 18

BoE ................................ 21

CBE.................................17

Phonejoy....................... 18

WTO .............................. 21

Thursday October 1, 2015 | BUSINESS DAILY

TOP NEWS
RADAR SCREEN

REUTERS

Traders work on the oor of the New York Stock Exchange: Dissident shareholders are reshaping the way chief executives manage their businesses and boardrooms.
FILE

Why US ms ae quick to give


boad seats to activist investos

arly in August, a call came into


Sysco Corp from Trian Fund
Management LP, warning
the food distributor that the activist
hedge fund was about to disclose a
large stake in the company.
Trian, run by veteran investor
Nelson Peltz, unveiled its 7.1 per cent
stake in Sysco on August 14, and asked
for board representation and for the
Houston-based company to improve
its protability and return money to
shareholders.
Six days later, Sysco awarded two
board seats to Trian.
For Sysco, it was better to reach a
quick agreement than risk a drawnout battle, a sentiment increasingly
felt across the corporate world.
Thats a signicant amount of
shares (owned by Trian), and were
at a key point in the business right
now, and really, they have a history of
bringing value to corporations, said
Sysco chief executive Bill DeLaney in
an interview, recounting the Trian approach to Reuters. We didnt want
to have a lot of disruption and a lot of
uncertainty in the business.
In the case of Cheniere Energy
Inc, Carl Icahn needed just 18 days
to clinch a deal for two board seats
after the activist bought 8.2 per cent
of the liqueed natural gas company
in August. ConAgra Foods Inc agreed
to a board settlement with Jana Partners in July, three weeks after the activist investor scooped up shares of
the processed food company.
While not all companies are as
quick to cut a deal as Sysco and
Cheniere, data reviewed by Reuters
shows that corporate management

BOADROOM COUP Companies cut deals

with dissidents to avoid costly proxy ghts


but critics are wary of their growing inuence
teams are reaching agreements with
shareowners can weigh in with a
activists at the fastest pace since the
vote, companies run the risk of
nancial crisis.
prioritising short-term expediency
The average number of days it
at the expense of long-term value,
takes companies to reach a settlesaid Stringer, who runs the $165.5
ment with activists threatening a
billion New York City Employees
proxy contest from the time of disRetirement System.
closure is 56, according to media and
Activists typically acquire chunks
research rm Activist Insight, down
of companies, and then push the comfrom 83 days in 2010 the furthest
panys management team to make
back the rms data on the
changes to boost shares,
subject goes.
such as buying back
The quickening pace of
stock, selling poorly perCompanies
forming units, or restrucactivist settlements shows
how dissident shareholdun the isk of turing the business. The
ers are reshaping the way
most eective way for an
pioitising
chief executives manage
activist to eect change
shot-tem
their businesses and their
is by being on the board
boardrooms. Backed by expediency at the of directors.
Companies previouspowerful institutional
expense of
ly could depend on large
investors, activists are
long-tem value institutional investors,
moving from outside
such as pension and muagitators to inuential
SCOTT STRINGER,
tual funds, to back their
insiders.
NEW YORK CITYS
Some investors worry
management teams in
COMPTROLLER
that companies are bowthe event of a proxy ght.
That guarantee has steadily faded.
ing to activists demands too easily,
According to Proxy Insight, the
to the detriment of their long-term
percentage of dissident proxy cards
shareholders interests.
that BlackRock, T.Rowe Price and
Boards have become quick on
Vanguard have voted to support
the trigger to grant seats to activist
investors just to avoid a proxy ght,
meaning they supported at least
said Scott Stringer, New York Citys
one dissident board candidate has
increased every year since 2011. For
Comptroller, who called the trend
T. Rowe Price, the percentage has
disturbing.
doubled to 50 per cent, the Proxy
When decisions are made before

The cost of proxy ghts


The average number of days it takes
companies to reach a settlement with
activists threatening a proxy contest
from the time of disclosure is 56, according to media and research rm
Activist Insight, down from 83 days
in 2010.
A study published last month by
professors at the University of Texas
at Austins McCombs Business School
referred to research that said the average cost of a proxy ght for both sides
is around $10.7 million
In proxy ghts where board seats
were sought at U.S. corporations, the
dissident shareholders success rate
rose to 73.1 per cent last year, compared to less than half in 2012, according to data from research rm FactSet

Insight data show. Last October,


activist Starboard Value LP won a
stando with Darden Restaurants
Inc, convincing shareholders to replace the entire board of the Olive
Garden parent with BlackRock
and State Street voting in support
of the dissident slate. Darden shares
have jumped 36 per cent since the
boards ouster.
Advisers to companies on activist
situations say that, while some settlements may look fast based on when
activists go public with their stake,
some occur after lengthy, behind-thescenes discussions with companies
and their other shareholders. These
advisers also concede that executives
will still ght if necessary, especially
against smaller upstart funds that
have less clout.
In the case of Sysco, the company
was up against a board nomination
deadline and one of its industrys
most venerable investors. Peltz has
agitated at several food and beverage
companies.
He was instrumental, for example,
in carving out snacks maker Mon-

delez International Inc from Kraft


Foods Inc in 2011.
Sysco unveiled last week a threeyear plan to achieve at least $400
million in annual operating income
growth through eciencies and cost
cuts. It said it was working on the plan
before Trian showed up.
I think companies are starting
to conduct a type of self-examination when they receive a phone call
or letter from an activist, said Francis Byrd, an independent corporate
governance consultant in New York.
Where companies are doing their
homework, they will say, maybe these
folks might have a point.
When chemical conglomerate
DuPont won its proxy ght against
Trian in May, its victory was seen as a
potential blow to activists that could
embolden more boards to ght dissidents to the bitter end. But 2015
has been marked more by truces
than battles.
One reason is the increasing aversion toward a proxy ght.
A study published last month by
professors at the University of Texas
at Austins McCombs Business School
referred to research that said the average cost of a proxy ght for both
sides is around $10.7 million. DuPont,
which spent $15 million to ght Trian,
has seen its stock drop 33 per cent
since the May win, shedding almost
$21 billion in market value.
For furniture company Ethan Allen, which is under siege by Sandell
Asset Management, such a proxy cost
is more signicant. If the $824 million
company spends the average amount
of money to ght Sandell, it would
equal about one-third of Ethan Allens
free cash ow, according to Thomson
Reuters data. Beyond the price tag,
companies are seeking to avoid the
distraction of an activist campaign
that gets nasty.
Activists are also becoming more
successful in winning the support of
other shareholders, such as mutual,
index and pension funds, which in
turn are putting pressure on companies to settle. For their part, companies no longer see giving one or two
seats to an activist as particularly
dilutive to their board.
Peltz, for example, is known for his
food industry expertise and for working closely with management teams
rather than against them.
While every proxy ght is dierent, the overall odds are not favourable to companies itching to ght, and
this can also make them reluctant to
participate in a protracted dispute. In
proxy ghts where board seats were
sought at US corporations, the dissident shareholders success rate rose
to 73.1 per cent last year, compared
to less than half in 2012, according to
data from research rm FactSet.
What would happen in the past,
the board would say, thanks-but-nothank you, said Byrd. Activists are
demonstrating that theyre being
reasonable. Theyre not looking to
change everything out.

BUSINESS DAILY | Thursday October 1, 2015

TOP NEWS

Constuction dags
second quate
gowth to 5.5pc
per cent, the second the global average of 16.1 per cent.
quarter growth makes
Activity in the construction, which
it dicult for the economy to realise the has for long kept the economy growTreasurys 6.5 to 7 per cent forecast for ing, also slowed down to 9.9 per cent
the year, adding that momentum has compared to 16.6 per cent in the second
been lacking in the third quarter and quarter of last year.
Construction, which mainly conis unlikely to pick up in the nal quarter of the year.
sists of infrastructure projects such as
The economy grew by 5.3 per cent roads, railways and real estate, grew at
last year helped by a robust six per cent the highest rate of 11.3 per cent in the
expansion in the second quarter, which rst three months of the year.
was the years best.
National Construction Authority
Analysts modest exchairman Steven Oundo
pectation for the third and
attributed the slowdown
to rising cost of loans and a
fourth quarter of the year
It is a good
weaker shilling, which has
is informed by the Central
Bank of Kenyas decision to outcome in light raised costs for private deincrease the policy rate in of the pevailing velopers.
The KNBS data, howevMay and June to a high of
climate that
er, shows that commercial
11.5 per cent, whose eect
is undelain
bank interest rates eased
has been the increase in
to an average of 15.38 per
commercial bank interest
by tubulent
rates beginning September,
exchange ate and cent from 16.68 per cent in
portending a slowdown in
the second quarter of 2014,
ising inteest contrary to Mr Oundos asconsumption.
The Kenya National Busertion.
ates
reau of Statistics (KNBS)
KNBS director-general
ALY-KHAN SATCHU
second quarter data, which
Zachary Mwangi says in
RICH MANAGEMENT
was released yesterday,
the agencys latest report
shows that activity slowed
that the (second) quarter
down in the manufacturing which grew of the year was characterised by a fairly
by 4.5 per cent compared to 8.3 per cent stable macroeconomic environment
in a similar period last year.
supported by a slowdown in ination
Kenya last week unveiled an indus- and decline in interest rates. The report
trialisation blue print aimed at spurring shows that the energy sector posted the
growth in the sector that has stagnated best performance, having grown 10.2 per
at 11 per cent of gross domestic product cent compared to 4.6 per cent in a simi(GDP) for the past 10 years compared to lar period last year, helped by increased

From Page 1

Economy growth between


April and June %

SOURCE: KNBS

geothermal and hydropower generation


alongside increased connection of homes
and schools to the national grid.
Kenyas economic mainstay agricultural sector, which accounts for slightly
over a quarter of GDP, expanded by 5.4
per cent in the review period compared
to 2.1 per cent last year, oering the muchneeded support to the economy.
The countrys macro-economic environment has this year been marked by
a persistent weakening of the shilling
against the dollar. The turbulence has
seen the Kenyan currency lose 16.3 per
cent of its value to the dollar since the beginning of the year to trade at Sh105.
The turbulence occurred in the wake
of falling revenues from tourism, tea and

Kenya Power workers instal a new


transformer in Mombasa in July. The
latest KNBS quarterly report shows
that the energy sector posted the best
performance. FILE
horticulture the countrys key foreign
exchange earners amid a rising import bill. The ongoing construction of
the Sh327 billion standard gauge railway linking the port city of Mombasa
and Nairobi kept the construction sector aoat, analysts said, pointing to the
fact that the sectors performance would
have been much worse in the absence of
the mega project.
The KNBS conrms that position,
stating that the 9.9 per cent construction sector growth was due to increased
public infrastructure projects.
Commercial banks lending to the
construction sector stood at Sh87.5 billion up from Sh77.1 billion last year while
cement consumption grew 4.8 per cent
to 459,022 tonnes.
The KNBS said growth in manufacturing was supported by reduced cost
of inputs such as electricity during the
second quarter.
In the food manufacturing sub-sector, there was an increase in the manufacture of soft drinks and processing of
canned foods which recorded growths
of 8.4 per cent and 19.2 per cent, respectively, the bureau said.
The Treasury has said that it expects
the economy to grow at between 6.5 per
cent and 7 per cent this year but hopes

of attaining the target now look to be


slipping away.
The many challenges facing the
economy have forced the International
Monetary Fund (IMF) to revise its fullyear growth projection from 6.9 per cent
to 6.5 per cent.
Kenyas current account has, for
instance, worsened by 61.8 per cent to
Sh151.2 billion in the second quarter,
meaning the country imported more
than it exported, piling pressure on the
shilling.
The worsening of the current account decit in the second quarter of
2015 could be attributed to the increase
in merchandise trade decit that deteriorated to a decit of Sh246.3 billion, the
KNBS said in its quarterly report.
A countrys net exports are one of
the four broad components of gross domestic product (GDP). The others are
investment, consumption and government spending.
Tourism declined for the seven consecutive quarters on the poor performance of hotels and restaurants as well as
accommodation, showing the extent to
which rampant insecurity has wreaked
havoc in the sector.
It, however, contracted at a much
slower pace of 0.8 per cent compared to
19.3 per cent last year second quarter.
Overall, the sector recorded a 1.9
per cent drop in hotel occupancies, the
KNBS said.
The nancial sector recorded a
growth of 6 per cent in the review period compared to 7.9 per cent in the same
quarter of 2014.
Credit to the private sector expanded
by 20.6 per cent from Sh1.7 trillion in the
second quarter of 2014 to Sh2.09 trillion
during the same period of 2015.
Since 2010, the best performing rst
quarters were in 2011 when the GDP grew
by 7.6 per cent and 2010 when it grew by
7.3 per cent.
notuki@ke.nationmedia.com

State moves to hie 70,000 elief teaches as stike bites


the government,
50,000 tutors will be posted to primary schools while the remaining will be
attached to secondary schools.
The teachers will be hired on a
three-month contract and will thereafter be considered on priority basis for employment on permanent
terms when vacancies arise, said Ms
Macharia.
The advert requires that applicants
for primary school teacher positions
must have P1 certicates while those
seeking to be secondary tutors need
to have a minimum of a Diploma in
Education.
Successful applicants must not ll
employment forms in more than one
station as this will lead to disqualication, the advert reads.
The public education sector has
been in turmoil since the beginning of
the new school term on August 31.
From Page 1

The more than 288,060 public


school teachers have boycotted work,
demanding a pay increase.
The teachers were awarded the
50-60 per cent salary increase by
the Employment and Labour Relations Court in June, but the TSC and
the government have since appealed
the ruling that is still pending at the
Court of Appeal.
The strike has paralysed the education sector in a crucial term when
more than 1.4 million students are
supposed to sit for national examinations.
Oral examinations for Form Four
candidates started on Monday and
will go on until October 6 before
the start of theory papers on October 12.
With fresh third-term dates, the
government attempted to re-open
the schools on Monday after the Em-

ployment and Labour Relations Court


suspended the teachers strike for 90
days last Friday.
Tutors, however, vowed to stay
away from the classrooms until they
were given directions by the court.
The government and the teachers
appeared before the Court of Appeal
yesterday morning for the hearing of a
case in which the TSC is appealing the
decision by the Labour Court to give
teachers a basic pay increment.

Amendment
Attorney-General Githu Muigai yesterday told Appellate Judges Erastus
Githinji, Philomena Mwilu, Festus
Azangalala, James Odek and Martha
Koome that the implementation of the
50 to 60 per cent basic pay award to
the teachers in the manner proposed
by the Labour Court would require a
constitutional amendment.

If judgment is allowed as it stands,


it will create an amendment to the
Constitution where Parliament can
appropriate funds, but will be limited
to what the courts have directed. We
state that it is not open for the judge
to disregard the constitutional framework, said Prof Muigai.
He said that the Constitution
provides that other than making
laws, Parliament has the power to
impose taxes and also decide how
public funds will be spent, a role
which even President Uhuru Kenyatta and his Cabinet secretaries cannot usurp.
It is a power the Constitution has
reserved to Parliament and to the extent the judge wanted through the order to allocate to teachers money not
budgeted for, it is the governments
position that the judge made an extreme error because he ignored the

Constitution, said the AG.


He said there is no procedure
known in law, other than the budgetary process, that can create Sh70
billion available to pay teachers.
Prof Muigai said that the order for
the government to immediately start
paying teachers enhanced backdated
salaries so as to cover the period July
1, 2013 to June 30, 2017, without appropriation from Parliament, is not
tenable.
President Kenyatta has maintained
that the increase in the teachers salaries is unsustainable and cannot be
implemented by the government.
The lowest paid teacher in Kenya
earns a minimum salary of Sh23, 692,
while the highest paid teacher earns
a minimum of Sh140,089.
Reporting by Sandra Chao, Ouma
Wanzala, Abiud Ochieng and Richard Munguti

Thursday October 1, 2015 | BUSINESS DAILY

ECONOMY & POLITICS

UK soldies to
be tied locally
unde new deal
PACT Kenyan laws to apply for

offences committed while off-duty


eration has run for 40 years,
and is currently valued at
President Uhuru Kenyatta has
about 58 million (Sh7.9 bilwon a major concession from
lion) a year, up from about
the United Kingdom with a
Sh2.5 billion three years ago.
new military deal that allows
The pact was extended by six
British soldiers who commit
months to October after the
crimes while in Kenya to face
initial deal expired to allow
justice in local courts.
for the talks.
The new agreement
The agreement allows up
to 10,000 British troops a year
which had stalled since
to conduct military exercises
2013 will see o-duty solin Kenyas harsh terrain bediers tried locally for breaking the law.
fore they are deployed to active operations in areas such
If a UK soldier commits
as Afghanistan and Iraq. The
an oence whilst o-duty,
deal also includes training of
normal Kenyan law applies
the Kenya Defence Forces.
as it would to any other UK
national in Kenya, the British
Kenya also wants more of
High Commission said in an
its soldiers to be trained in
e-mail response to the Busithe UK, up from the current
ness Daily questions.
two yearly.
If on-duty, UK military
There have been several
law would apply however,
unsolved crimes linked to
with proceedings to be held
British troops.
in Kenya, as directed by the
In 2013, Sergeant George
Judge Advocate General.
Madison shot and killed TilThe Judge Advocate Genam Leresh, an armed herdseral is the princiman, during a
pal judicial ocer
live re exerin the UK armed
cise in LolkanThe new
forces.
jau, Samburu
The new deal,
County, outside
ageement
which
awaits
the designated
will esult in
parliamentary
military trainapproval in the impoved militay ing grounds.
two countries, folHe was concapabilities fo
lowed a Monday
ned to barboth sides
meeting between
racks for seven
BRITISH HIGH COMMISSION
British premier
months while
David Cameron
a diplomatic
and President Kenyatta on
battle raged over where he
the sidelines of the ongoing
should be tried before being
UN General Assembly meetremoved from the country.
ing in New York in a bid to
In 2012, Agnes Wanjiru
strengthen security, economic
Wanjiku was found murand diplomatic ties.
dered in Nanyuki having last
Nairobi had threatened to
been seen with two British
end its military co-operation
soldiers. The case remains
deal with the UK unless lounsolved with the suspects
cal courts try British soldiers
having been deployed to Afwho commit crimes while on
ghanistan before questioning
training in Kenya.
by the Kenya Police.
That same year, some 200
The new agreement will
British soldiers were involved
result in improved military
in a bar brawl near the Lions
capabilities for both sides
Court Hotel in Nanyuki. The
and allow for concurrent jurisdiction, recognising that
bar was destroyed and several people injured. Some
the laws of both nations apply to visiting forces, said a
of the soldiers were airlifted
statement from the British
to Nairobi. No charges were
High Commission.
ever led.
Kenya-UK military co-opnotuki@ke.nationmedia.com
BY NEVILLE OTUKI

Food pices aise ination fo st time in 3 months


BY BD REPORTER

A spike in food prices helped lift ination


for the rst time in three months to 5.97
per cent.
The Kenya National Bureau of Statistics
(KNBS) said in a statement that ination
rose from 5.84 per cent in August.
Food costs outweighed drops in electricity, kerosene, petrol, and housing prices, the

statistics oce said. This was an aggregate


result from increases in prices of several
food items which slightly outweighed the
decreases, said KNBS.
Food has big eect on Kenyas ination
because it accounts for a larger share of
consumption. The cost of potatoes, milk,
sukuma-wiki and onions went up, the statistics oce said.
The central bank (CBK) has a medium

term ination target range of between 2.5


per cent and 7.5 per cent.
Ination has remained within this
target over the past 12 months, shifting
policy makers concern to the volatile
Kenya shilling.
The shilling has lost about 16.3 per cent
against the dollar this year on what the CBK
has blamed on speculative activities by currency dealers and weak scal position.

BUSINESS DAILY | Thursday October 1, 2015

ECONOMY & POLITICS

Police hunt fo gang led by 80-yea-old woman


BY ANGIRA ZADOCK

A road under construction. IFC mainly invests in infrastructure. FILE

Couption, taxes cut


Kenyas competitive
edge in global anking
SURVEY GCI report puts State at position 99 out of

Police are on the trail of a gang led by


a woman in her eighties that has been
robbing people in Nairobi for the last
three years.
Police say the gang of two men
and three women,, all of Asian origin,
mainly target electronic goods and
M-Pesa shops in Nairobi and neighbouring towns.
In all the cases reported to the police, the gang has not been reported to
use rearms. One of the gangsters is a
well-known suspect who was brought
up and lived in South C before he
moved away two years ago.
The elderly gang leader accom-

had arrived in Kenya the previous day


and wanted various denominations of
Kenyan currency.
The shop owner realised that they
were taking too long and became impatient. She told them that she wanted to
attend to another customer who wanted to buy milk from the next counter
but the young woman pleaded with
her to be patient.
She left to serve the other customer but when she came back to the MPesa counter, the two left hurriedly and
drove o in a car parked outside.
The shop owner later realised that
they had stolen all the money, but unfortunately did not get the details of
the car.

Bungoma youth
petition EACC
on wheelbaows

140 as regional rival Rwanda climbs to position 58

BY LILLIAN MUTAVI

regular payments and bribes as well


as favoritism in decisions made by
government ocials.
Corruption and burdensome taxes
Besides Rwanda, Kenyas other
have cut Kenyas competitiveness in
neighbours were ranked below it
the latest ranking by the World Ecowith Ethiopia jumping nine places
nomic Forum (WEF).
The country is ranked 99th out of
to 109. Uganda was at 115 while Tan140 economies in the 2015-16 Global
zania is ranked 120.
Competitiveness Index (GCI) released
The index provides a glimpse into
yesterday, down from 90 last year and
the key factors that determine ecotrails regional rival Rwanda-which has
nomic growth and a countrys level of
risen to position 58.
present and future prosperity.
Corruption was cited as the most
By doing so, it aims to build a
problematic factor in doing business
common understanding of the main
with weak institutions in
strengths and weakgovernment also pulling
nesses of an economy so
stakeholders can work toKenyas score down.
High corporate taxes
By doing so it gether to shape economic
agendas that address chalhas also dimmed Kenaims to build
lenges and enhance opporyas competitiveness. The
a common
government takes 38.1 per
tunities, the report adds.
cent of the prots posted
Kenya performed relundestanding
by rms in form of taxes
atively well on the qualof the main
compared 28.8 per cent in
ity of the education sysstengths
and tem where it scored 4.3
South Africa and 33.5 per
cent in Rwanda.
weaknesses... points out of seven to see
Kenya had an averit ranked at position 36.
GCI REPORT
age score of 3.9 points
Other areas of good
from a maximum seven across 114
performance are nancing through
indicators that range from labour,
local equity market (4.4 points), the
countrys capacity to attract talent (3.7
macroeconomic stability, educapoints) and capacity for innovation
tion, institutions and infrastructure
(4.3 points).
among others.
But terrorism which has severely
In all the indicators that are coraected tourism at the coast is shown
ruption-related, the country scored
poorly reecting the weakness in comto be a major drawback. Kenya has
bating the vice that has remained rootbeen ranked last in the business costs
ed in Kenyas government and private
of terrorism showing the huge amount
sector. For example, the index gives a
being lost due to the terror attacks as
poor score of 2.9 (out of 7) for diverwell as the insurance covers and sesion of public resources.
curity costs.
Diversion of resources for key proThe country also ranks low at pogrammes like infrastructure has been
sition 134 on the cost associated with
blamed for slowing down the improveinsecurity and organised crime. Poments necessary to attract and retain
lice services are put to be unreliable
investors in the country.
in the country.
The report also paints a poor
picture of the country in terms of irgnjoroge@ke.nationmedia.com

A group of Bungoma youth has petitioned the Senate, the ethics agency
and the Directorate of Criminal Investigations to review county government tenders, including the purchase
of wheelbarrows at Sh109,000 each,
saying they were inated.
The petitioners also cite embezzlement of funds, nancial impropriety
and skewed employment.
We have ocially brought our
petition; before it was hearsay that
the county spent Sh109,000 on a
wheelbarrow. We want a clear investigation on the matter, said Dalton
Simiyu, 24.
They also asked the Ethics and
Anti-Corruption
Commission
(EACC) to investigate the acquisition of 32 acres of land at Musikoma
at Sh6 million per acre, which they
said was inated.
The county government bought a
Toyota Fortuner at Sh9.6 million and
raised the budget for a maize meal
programme in Kamukuywa from
Sh376 million to Sh1.2 billion, stated
the petition.
Farmers got local cows at Sh82,000
each, believing these were exotic and
pure breed dairy cows, they claimed
in a list that also contained an oce
partitioning project whose budget was
Sh15 million and the fencing of the
governors oce at Sh26 million.
The petitioners questioned the recruitment process, accusing the Public
Service Board of biased hiring and disregarding requirement of minimum
qualications.
Mr Michael Mubea, the EACC
deputy chief executive, said 15 counties, including Bungoma, were being
investigated for graft.
The wheelbarrow case had been
investigated but the ethics agency will
also work on the list of petitions presented by the youth, he said.

BY KIARIE NJOROGE

panies her youthful accomplices to


targeted outlets posing as a rst time
visitor to Kenya and in desperate need
to change foreign currency into local
money.
The gang has been captured on
several CCTV cameras but very little
is known about their personal details
and residence. Langata OCPD Elijah
Maina yesterday said they were investigating a case where the gang stole
money from an M-Pesa shop in Dam 2
Estate in Langata on Saturday.
The octogenarian and another
young woman went to the M-Pesa shop
and pretended they wanted to withdraw Sh70,000. The young woman told
the shop owner that the elderly woman

The 20-inch 450-kilometre Kenya Pipeline Companys pipeline under


construction at Kokotoni in Mombasa in July. FILE

KPC to lease pivate oil stoage


facilities in Naiobi, Mombasa
BY ALLAN ODHIAMBO

The Kenya Pipeline Company (KPC)


plans to lease oil storage facilities
from private investors in Nairobi
and Mombasa in a bid to improve
product distribution and supply.
The KPC said it targets to lease already operational terminals in Nairobi and Mombasa with a capacity
of 30 million litres and 100 million
litres, respectively.
The terminal must be t for
purpose for immediate use, the
company said as it called for bids
by interested terminal owners.
Several private rms such as
Vivo, KenolKobil, Hashi Ampex,
Petrocity, Gapco and Total Kenya
have petroleum depots and terminals in Nairobi and Mombasa.
Investors and marketers are currently deprived of reliable storage to
suit their demands to service East
Africa and its hinterland.
Extra storage is critical to oil
marketers in the region because of
thin prot margins from sales. In
fragmented markets such as East
Africas, bulk supplies hold the key
to protability. The government in
September last year took over the
management of a private oil terminal in Kipevu, Mombasa, raising

hopes of lower storage penalties


for oil marketers, which will ultimately lower product prices.
The KPC now runs the facility
owned by international storage logistics rm VTTI under a ve-year
lease deal. The newly leased facility provides an alternative to the
strained national storage tanks at
the State-owned Kipevu Oil Storage
Facility, which have been blamed for
high demurrage charges.
Oil marketers have been paying
penalties for delays occasioned by
tankers failing to ooad due to a
lack of adequate storage.
VTTI bought out the 111-million
litre facility as an incomplete asset
from the troubled Triton Limited.
But oil majors had been hesitant
to use it since it is majority owned
by Vitol, which has signicant stake
in Kenya Shell.
The terminal is linked to the KPCs
main line from Mombasa to Nairobi,
which allows products to be pumped
from the coastal town to Nairobi, Eldoret and Kisumu. Besides leasing
storage facilities, the KPC targets to
more than double the capacity of its
Nairobi fuel terminal to cater for extra petroleum products when a new
pipeline from Mombasa becomes operational in 2016.

Thursday October 1, 2015 | BUSINESS DAILY

CORPORATE NEWS

Baclays denies ole in 134-ace Kaen land tansfe saga


BY BRIAN WASUNA

Barclays Bank has denied any involvement in the alleged illicit transfer of a
134-acre piece of land in Karen whose
dealings have sucked in past and
present senior government ocials.
The lender yesterday told a Nairobi
High Court that it only held the land as
security for a loan taken by a business-

man at the centre of the saga, Horatius


Da Gama Rose, and released it in 1988
after the debt was repaid in full.
Barclays director of legal services
Waweru Mathenge said the lender only
oversaw the transfer of the land from its
original owner Arnold Bradley to Mr Da
Gama Roses father Francis. Barclays
holds that it was the executor of Mr Bradleys will and that it was legally trans-

Del Monte signs


pay ise deal fo
1,771 wokes
AGREEMENT Employees get 7-9pc

award and improved allowances


times in the year such as during planting and harvesting
Fruit grower and juice procof pineapples.
essor Del Monte Kenya is facThe deal on higher pay and
ing a higher wage bill after
allowances comes at a time
when Del Monte is embroiled
signing a pay raise deal with
workers of between nine and
in a legal ght with Muranga
seven per cent, in addition to
County over the renewal of
improved allowances.
its land lease set to expire in
The 1,771 workers of the
2022.
Thika-based fresh produce
Governor Mwangi wa
company both temporary
Iria demanded 6,000 acres
and permanent are set to
of land from Del Monte as a
earn higher allowances for
condition to renew its land
housing, travel and overlease, the juice maker said in
time, as well as enjoy paid
court lings.
Miami-based
leave under the
parent company
new
two-year
Fresh Del Monagreement that
Its a good deal tes net sales
will be backdated
to April.
given the cuent grew by nearly
tenth to hit
The collective
situation. It was a$3.9
billion in
bargaining agreea potacted
ment was signed
the period ended December
on Tuesday benegotiation
2014 in what the
tween the Kenya
BONIFACE KAVUVI, SECRETARY
company said
Union of ComGENERAL, KUCFAW
mercial, Food and
was buoyed by
Allied Workers and
expanded proDel Monte Kenya Ltd.
duction in our new Saudi
Its a good deal given the
Arabian juice operation and
current situation. It was a proour Kenya facility.
tracted negotiation. It took us
Del Monte owns and opervery long because the compaates a juice and food cannery
ny is having other challenges,
as well as a warehouse in Thisaid union secretary general
ka where it has a 10,600-acre
pineapple plantation under
Boniface Kavuvi.
leasehold. It produces and
Implementing the new
markets pineapple, peaches,
demands is expected to see
fruit cocktail, pears, tomatoes,
Del Montes sta costs rise
fruit juices and other fruit and
by Sh61.7 million annually,
vegetables.
according to the signed pay
Del Monte competes with
deal documents seen by the
Kevian, maker of PickNPeel
Business Daily.
fresh juice, Coca-Colas
Del Monte Kenya has 219
permanent employees while
Minute Maid, Splash by Britathe rest are seasonal workers
nia Allied and Kenylon.
who only get hired at certain
hdavid@ke.nationmedia.com
BY DAVID HERBLING

ferred to Francis Da Gama Rose.


Mr Mathenge said Mr Da Gama Rose
used the land as security for loans between 1983 and 1988.
He stated that there is no record to
show that the land was transferred to
Muchanga Investments, another rm
owned by the Da Gama Rose family.
Barclays transferred the property
to Da Gama Rose Investments as execu-

tor of Mr Bradleys estate. By January


31, 1983 the executorship had been nalised. There are no records showing
that Barclays dealt with the land in regards to Habenga Holdings, Catherine
Nganga or John Mugo, he said.
Mr Da Gama Rose, former NSSF
managing trustee Jos Konzolo and
Carmelina Mburu, the widow of Nairobis rst provincial commissioner are

engaged in a vicious legal battle for the


land, claiming ownership. Muchanga
Investments, owned by Mr Da Gama
Rose, led the suit last year.
Lady Justice Lucy Gacheru summoned Barclays to explain the transfer
of the property to Mr Da Gama Rose.
Justice Gacheru extended orders
stopping interference with the property until October 30.

BUSINESS DAILY | Thursday October 1, 2015

CORPORATE NEWS
ADVERTS Firm says move is an act of good faith but does not amount to admitting liability

Aitel emoves
M-Pesa banding
fom agent shops
including its symbols on the advertising billboards of its agents.
Airtel Kenya says it has removed all MSafaricom says it had written a
Pesa branding from its mobile money cease and desist letter to Airtel on
agency outlets in response to a court May 15 over the use of its logo by Aircase led by Safaricom claiming tel Money agents after investigations
showed infringement in 69 outlets
breach of its trademark.
Linda Kaai-Kiriko, Airtels legal across the country.
The telco, which
and regulatory aairs
has a commanding
manager, says in court
lead market share,
documents that the reclaimed that Airtel
moval of the references
Aitel acted with
initially wrote to it
to M-Pesa in all its adspeed and deleted
vertising boards is an
saying it was not
all efeences to the aware of the tradeact of good faith but does
not amount to admitting
mark
infringeplainti s sevices
any liability.
ment and that it
Upon realising that
would undertake
LINDA KAAI-KIRIKO, AIRTELS LEGAL AND
this suit had been led
investigations and
Airtel acted with speed
revert.
REGULATORY AFFAIRS MANAGER
and deleted all references
Airtel
later
to the plaintis services
wrote an e-mail
from its boards by July 14, says Ms to Safaricom seeking a way forward
Kaai-Kiriko in the court papers.
on the shared agents branding on
Safaricom moved to court in June May 27.
claiming that Airtel was infringing on
Ms Kiriko claims that Airtel enits M-Pesa trademark for the promo- gaged its rival in discussions to nd
tion and marketing of Airtel Money by an amicable solution after the rm re-

Stima Sacco
in Sh1.3bn
housing plan
BY MUGAMBI MUTEGI

BY SANDRA CHAO-BLASTO

Airtel Kenya CEO Adil El Yousse. FILE

ceived the demand notice with Airtel


Kenya CEO Adil El Yousse and Safaricom chief executive Bob Collymore
leading the conversations.
Safaricom led the instant suit despite the fact that the chief executives
of the two companies were in direct
communication with each other on
the subject matter demonstrating the
seriousness with which the issue was
being treated, she said.
Airtel says in court documents that
it had approached some of Safaricoms
M-Pesa agents after the Competition
Authority compelled Safaricom to remove and nullify all the clauses that
provided for exclusivity of trade with
them in June last year.
Airtels legal aairs ocer claimed

that the agents who agreed to enter


into contract with it did not object
to the mobile money branding on
their premises, saying they wanted
the signage to show that they also
oered Airtel Money services in addition to M-Pesa so as not to mislead
customers.
We agreed to put the notices on
the boards as requested by the agents
merely stating that the alternative
competing services were also available at the respective sites, she said.
Safaricoms in-house counsel Daniel
Ndaba however argues in court documents that the agreement of the retailer to the branding of their outlets
was not a licence for Airtel to infringe
on the M-Pesa trademarks.

Stima Sacco is set to construct 340 residential houses in Machakos at a cost of


Sh1.3 billion, becoming the latest co-operative society to deepen its investment
in the real estate sector.
The gated community is to be built
on a 19.6 acre piece of land in Matungulu
(along Kangundo Road) and will comprise three-bedroomed maisonettes and
bungalows, two-bedroomed apartment
blocks and a kindergarten.
Stima Investments Cooperative Society Limited, an aliate of Stima Sacco, is
overseeing the project that it expects to
break ground in November and complete
in about 18 months.
Co-operative societies like Mwalimu,
Chai and Safaricom Saccos are currently
undertaking several multi-billion shilling
real estate projects in the country, selling
the housing units to both members and
non-members.
We expect to receive all regulatory
approvals and thereafter oat a tender
for construction, said Stima Investments
CEO Nelson Irungu in an interview.
We are targeting the middle class who
are increasingly settling in the area. The
houses will be sold to both members and
outsiders for between Sh4 million and
Sh6 million.
The 41-year-old sacco has a membership of 54,000 and was ranked third largest in the country by the sector regulator
last year.

Global hotel band Sheaton


announces Kenya enty plans
BY DOREEN WAINAINAH

Global hotel brands Four


Points and Radisson Blu
Residence are set to enter the
Kenyan market in global expansion plans.
The announcement of their
entry was made yesterday during the annual Africa Hotel Investment Forum.
Four Points to be developed
by Sheraton Hotels, a subsidiary of Starwood Hotels will be
located near Jomo Kenyatta
International Airport where
it will be targeting travellers
to and from Kenya.
The hotels said the plans
were part of their expansion
into the Africa and Indian
Ocean regions.
Africa is a market with
huge potential. With economic
growth, a rising middle class
and rapid urbanisation, the
demand for travel and quality

A Radisson Blu Hotel in Upper


Hill. DIANA NGILA
lodging will continue to grow
and provide us with a signicant opportunity to grow our
brands and play our part in
supporting many emerging
markets across the continent,
said Michael Wale, president of
Starwood, Europe, Africa and
the Middle East.
The 194-room Four Points
will be operated under a franchise arrangement.

The 123-room Radisson Blu


Residence by Carlson Rezidor
is expected to start receiving
guests in late 2016.
The high-end property located next to State House will
be the fth of its kind in the region, but the rst in Kenya.
Among the target countries for future projects are
Nigeria, Ghana, Ethiopia,
Mozambique, Angola, Kenya,
Tanzania, and South Africa,
said Andrew McLachlan,
Vice President Business Development Africa and Indian
Ocean Islands at Rezidor.
Carlson Rezidors total portfolio in 27 countries in Africa
now features 65 hotels (30 hotels with 6,700 rooms in operation and 35 hotels with 7,600
rooms under development).
Starwood has 34 hotels and
a pipeline of 20 hotels under
development.

Thursday October 1, 2015 | BUSINESS DAILY

IDEAS & DEBATE


OPINIONS I REVIEWS I ANALYSIS

Other Voices
Jeremy Corbyn
Britains Labour Party leader

Asa Bennet, The Telegraph


Jeremy Corbyn doesnt want to sit in No 10.
He wants to protest outside it. The Labour
Party is pretending that voters dont exist.
Imagine you are the leader of a political party. That party hasnt won a general election
for a decade. Its unlikely to be in a position
to win an election for another decade. What
can you do? If youre Corbyn, you do something that is breathtaking in both its audacity and its simplicity. You just pretend the
voters dont exist. You simply ignore them.
Barack Obama
US president

Workers build the Grand Renaissance Dam near the Sudanese-Ethiopian border. Infrastructure and energy provision remain
key challenges for Africa. AFP

Is issuing debt instuments


a viable option fo Afica?
BY ROBBIE CHEADLE AND
JOHN GEEL

e live in a world where debt


has become a part of life.
As much as we are certain
that the sun will rise in the morning,
we know that we will fund high value
items using long-term debt. The same
applies to our governments which we
rely on to make sensible and considered decisions on our behalf.
Post the 2008 global nancial crisis, bank funding has become more
dicult to obtain. As a result, African
governments, which desperately need
to grow their economies to alleviate
large scale poverty in their countries,
are turning more and more to domestic
central government marketable debt
instruments (Government Marketable Debt) and sovereign debt as an
alternative method of funding their domestic development requirements.
Infrastructure and the ability to
provide electricity are major inhibitors
to growth in most African countries
and the lure of government marketable
debt and sovereign debt as a method of
funding capital intensive infrastructure projects is very strong.
The ve largest economies in Af-

FUNDING Governments must consider cost

implications of incurring additional debt and


ability to fund interest and repayments
rica, namely Nigeria, South Africa,
Egypt, Morocco and Kenya are all
restrained, to some extent, by poor
infrastructure, including their ability
to provide electricity.
Based on the World Bank 2015 Ease
of Doing Business Survey the ability of
these ve countries to provide electricity (calculated using the formula 1-(relevant countries rating per the survey /
the total number of participants in the
survey) is as follows: Nigeria one per
cent, South Africa 16 per cent, Egypt
44 per cent, Morocco 52 per cent and
Kenya 20 per cent.
Similarly, the extent that infrastructure deters investment in these
same ve countries, according to the
participants in the Frasier Institute
Annual Survey of Mining Companies
2014 is as follows: Nigeria 89 per cent,
South Africa 43 per cent, Egypt 45 per
cent, Morocco 31 per cent and Kenya
38 per cent.
The attractiveness of using government marketable debt and sovereign

debt is compounded by the numerous


publications and research documents
promoting the usefulness of these instruments as a viable method of funding for African governments.
In considering whether the assumption of additional government
debt is really an option, African governments need to carefully consider
a number of factors, including most
importantly their existing debt position on a holistic basis.
The published debt gures for the
countries of the world tend to be split
up into total domestic government
debt and sovereign debt with the result
that each governments total indebtedness is not that easy to establish. Total
domestic government debt for African
countries has generally increased between 2013 and 2014. The ve African countries with the highest levels
of total domestic government debt as
a percentage of gross domestic product (GDP) for 2014 are Zimbabwe
at 181 per cent, Egypt at 94 per cent,

Morocco at 77 per cent, Ghana at 73


per cent and Mauritius at 61 per cent.
Kenya at 59 per cent and Mozambique
and South Africa at 47 per cent each
are also among the more indebted African countries.
If the sovereign debt owing by African countries is brought into the equation, the total debt position for certain
countries becomes fairly concerning,
particularly against the current backdrop of declining global mineral prices,
declining global foreign direct investment (FDI), inadequate energy supplies, lower growth rates and weaker
exchange rates.

Useful tool
In conclusion, Government Marketable Debt is a useful tool available to
African governments to fund much
needed infrastructure projects and
power initiatives.
However, the ability of improved
infrastructure and electricity generation to contribute to each countries
anticipated GDP growth and FDI
inows needs to be compared to the
cost implications of incurring additional government debt and the governments ability to fund interest and
debt repayments timeously.
The potential negative cash ow
implications of paying interest and settling government debt that is denominated in a foreign currency, particularly the continuously strengthening US
dollar, also needs to be considered.
Cheadle is Associate Director,
Deal Advisory and Capital Markets
at KPMG and
Geel is Managing Partner, Deal
Advisory at KPMG

Michael Hudson, International


News
In his Orwellian September 28, 2015 speech
to the United Nations, President Obama said
that if democracy had existed in Syria, there
never would have been a revolt against Assad. By that, he meant Isil. Where there is
democracy, he said, there is no violence of
revolution.This was his threat to promote
revolution, coups and violence against any
country not deemed a democracy. He
redened the word in the international political vocabulary.
Jacob Zuma
South Africa president

Aditi Lalbahadur, Mail & Guardian


The principles that South Africa applies in arriving at its foreign policy decisions are not
always clear. There is plenty of evidence to
show that Jacob Zumas government seeks
to balance multiple interests while being responsive to the context within which issues
emerge. But the principles that South Africa
applies in arriving at its foreign policy decisions are not always clear. This makes it difcult for observers to understand, if they are
not attuned to these multifarious factors and
the weighting that they are afforded.

10

BUSINESS DAILY | Thursday October 1, 2015

EDITORIAL & OPINION

Published by the Nation Media Group, Kimathi Street, Nairobi

Joe Muganda Chief Executive Ofcer | Tom Mshindi: Editor-in- Chief


Ochieng Rapuro: Managing Editor
P.O.Box 49010 GPO Nairobi Telephone: 254 20 328 8104 Fax: 254 20 214849
Email : bdfeedback@nation.co.ke www.bdafrica.com

Audit vasity couses


fo quality and stang

he stoppage of certain courses, including engineering


and law, from being taught
in some universities has put the
higher education sector under the
spotlight. It has revealed the need

to audit the courses currently being


oered by universities on the basis
of whether they are accredited and
meet the expected quality in terms
of instruction, curriculum, stang,
materials and research.
There is a supervision lacuna
in the way universities are rushing
ahead and starting to oer courses
without consulting with the relevant
professional bodies or even seeking to
meet their own regulations on quality
instruction. You now have some varsities oering medical degrees even
without teaching hospitals. The trend
is costing parents and students money, time and even their entire livelihoods. You now have students who
have completed and graduated in
some courses only to be told that
the same had not been accredited
by the relevant authorities.
While some of the graduates were
expecting to be absorbed into the job
market, they have found themselves
in a situation where they have to retrain, or go into menial jobs as if they
had no papers yet they have spent
years and money in training.
But the main blame it to be
placed on the hands of the university authorities who fail to take heed
of the warnings issued to them. They

should be held accountable. There are


now universities scattered all over the
country, but one must ask whether
such institutions are even able to attract lecturers and other workers to
keep them running.
The deterioration in the management of public universities has been
taking place for just over a decade
now, but can be traced more squarely
with the onset of the parallel degree
programmes where even those holding minimum qualications found
their way to the universities.
The institutions appear to be driven by their intention to make money.
They introduce as many courses as
possible without regard to their ability to teach them properly.
There are many cases where you
have classes with hundreds of students, but they have only one lecturer
who is expected to mark the tests as
well as their term papers in a competent manner. Even invigilating a
class of 600 students during exams
becomes an arduous task that will
probably leave room for many students to cheat.
At the end of the day, one must
wonder what quality of graduates
will be produced in such an environment. Private universities that
have the necessary class materials,
do research and insist on quality
teaching are therefore occupying
the enviable position of being able
to produce graduates who are better
prepared for the job market.

Pay supplies pomptly

eports that leading retail


chains are holding more
than Sh8 billion they owe
suppliers for goods delivered to
their stores, though seemingly a
problem that aects only a small
fraction of the Kenyan economy,
must be taken seriously.
This is because in delaying to
pay for goods that have been delivered and in most cases sold, the
retailers are infusing a great deal of
ineciency into the economy that
ultimately harms the consumers.
Holding such a large amount of
money leaves manufacturers and
other suppliers in a tight liquidity
position.
It leaves many of the suppliers
with the unenviable option of procuring loans to keep their operations aoat.

And because commercial bank


lending rates are high and rising,
the manufacturers are made to incur very high cost of capital, which
they pass on to the consumer in the
form of higher priced goods.
This has the macro-eect of
increasing the rate of ination in
the economy and cancelling out the
little gains the manufacturers may
have made from recent eorts to
reduce the cost of energy with the
supply of cheaper power.
Most importantly, one hopes
that the retailers inability to pay
suppliers is informed by tangible
market challenges away from blatant use of market power to squeeze
manufacturers in order to increase
their prots as was recently found
to have been happening in the
United Kingdom.

To comment...
The editor invites comments on our content and topical issues. Please
include your full names, telephone number and address in your letter.
Email: bdfeedback@nation.co.ke

Honesty is the best policy? I disagree... We once had an oce party, people got
drunk and started being honest with each other... It wasnt pretty...

Lets pepae adequately fo El Nio


BITANGE NDEMO
PREPAREDNESS

e are all waiting with bated


breath to see whether scientists dire predictions of El
Nio will happen. Of course it the responsibility of the scientist to warn us,
and ours to prepare.
What raises eyebrows is our reaction
to disaster predictions. We react the same
way our great grandfathers would have
reacted, with characteristic fatalism
borne of our cultures. We attribute occurrence of future events to God. We
throw our hands in the air and say, ya
mungu ni mengi.
It is a defeatist cultural belief. Many
countries have accumulated enormous
amount of data to be able to predict
many future events. We must take it as a
certainty and begin planning for its occurrence.
National and county governments are
showing o with their huge budgets set
aside to ght El Nio. In any strategy, it
is not the budget that ghts it is hearts
and minds that are important. I would
hope by now that residents of Budalangi
and Nyando river catchment areas, lower Tana delta and informal settlements
along the river banks of Nairobi, especially in Kibra, Mukuru and Mathare have
been moved to higher grounds.
We also must be cognisant of changing
patterns of ooding. Torrential rainfalls
in Ngong Hills will devastate residents
of Ongata Rongai more than ever before.
This is because we now have many people living on the slopes whose houses act
as water collection points that feed the

raging oods downstream.


It is imperative that we map out patterns of settlement and their environmental impact. We are seeing more and
more ooding in the Rift Valley that has
never had a history of ooding. Last year,
ooding in Narok killed 15 people even
as we failed to address the bigger issue
of environmental degradation.
We have refused to relate our own
actions to the eects of climatic change
and what we see on the ground. Flooding in Narok was a direct consequence
of the depletion of the Mau Forest and
settlement patterns. In April 2012, seven
church youths died in Hells Gate, which
lies a few kilometres from Naivasha and
Mau. Yet we never use historical facts
to inform and prepare those who may
be aected.
We must connect the dots of disaster
points to problem sources if we want to
deal sustainably with environmental
disasters. Nairobi and its environs are
growing haphazardly when virtually
every city on the globe aspires to be a
smart city. A smart city as dened by
Southampton City Council, uses digital
technologies or information and communication technologies to enhance quality and performance of urban services,
to reduce costs and resource consumption, and to engage more eectively and
actively with its citizens.
Unfortunately, we politicise even
the science of planning. Recently, a
prominent politician opposed the Kidero drums. This trac experiment was
conducted by a globally respected rm
that has executed many smart cities plans
globally but its work was threatened by
a political populist.
Although initially frustrating, it has
worked in Westlands and other areas
by unclogging the ow of trac in key
arteries.

VIEWS FROM ABROAD

It is such experiments that we must


emulate now in order to get it right
during emergencies. Even without an
emergency, you can die in the trac
jam in Nairobi today while being taken
to hospital in an ambulance. Most drivers, perhaps because they never went to
proper driver training schools, nd ambulances a bother and hardly create any
space for them to pass.
So no matter how much money we
have as a war chest for any disaster, it
is pointless if our culture on the roads
remains backwards. We need multiple
simulation and punishment to ignorant
drivers to attain the level of preparedness
needed to see us through El Nio and
similar disasters in the future.
Many of the drainage systems are
clogged in major cities including those
that are claiming to have set aside funds
for the impending disaster. Logic would
dictate that some of the money be used
to unclog the drainage systems.
Big cities must link up with mobile
network operators and broadcasters to
collaborate especially in the use of SMS
as well as broadcasts to inform people in
disaster points.
In the past, we have been stuck on an
impassable highway for hours when SMS
or broadcast can inform people to use
alternative routes. By law, broadcasters
are supposed to give a few minutes for
public information such as emergency
and disaster broadcasts.
This facility must be used ahead of
time to educate drivers to avoid using
roads and to allow emergency vehicles
deal with problems more eectively.
Former British PM Winston Churchill
once said: Plans are of little importance,
but planning is essential.
The writer is an associate professor
at University of Nairobis Business
School

Opinions fom aound the wold

Differences deepen Syrian crisis

Water on Mars great news

Leaders are elected on merit

Speaking at the UN on Monday, President Obama


and President Vladimir Putin of Russia affirmed
the need for international cooperation. But
those sentiments are
NEW YORK TIMES
NEW YORK
undermined by profound
differences on the nature of the Syrian crisis
differences that provide little hope for resolving a
conflict that has killed more than 250,000 people. Mr
Putins increased aggressiveness in Syria could result
in a new era of Russian-American competition.

When ancient explorers set off from home they


would follow the water, along rivers and coastlines,
from lake to lake. There was little else they could do;
for water is unique. The
THE GUARDIAN
LONDON
US space agency put the
same intuition at the heart of its exploration of Mars.
On our home planet, where there is water, life is
never far away. And it is this that makes Nasas latest
discovery so exciting: that water may flow on Mars
today, at least in the warmer months of summer.

Last week, Church of Uganda Archbishop Stanley


Ntagali made an instructive statement to Ugandans,
especially those aspiring for political office in the
forthcoming poll. The
DAILY MONITOR
KAMPALA
Archbishop said many
politicians are distributing money to voters in
exchange for votes, and cautioned them to desist
from bribery because good leaders are elected on
merit. Voter bribery is not new in Uganda. It has, in fact,
become the norm in Ugandas electoral process.

Thursday October 1, 2015 | BUSINESS DAILY

11

EDITORIAL & OPINION

Yahoos Alibaba spino toubles may outlast boss


ROBERT CYRAN
CHALLENGES

he troubles with Yahoos


spino of Alibaba could last
longer than Marissa Mayer.
The internet rms boss says the
company still plans to rid itself of
a $22 billion stake in the Chinese
e-commerce company. Whether
the deal will be tax-free, though, is
an issue that authorities could take
years to resolve.
With Yahoos business stagnant
and competition rising, the chief
executive may be gone before the
wrangling ends. If everything goes
as planned, the $28 billion company

could save more than $6 billion in


payments to Uncle Sam.
Earlier this month, however, the
Internal Revenue Service declined to
say it would approve the transaction,
stating that the income consequences of spinos were under review.
Yahoo might still realize the tax
benets if it closes the transaction
before years end, because the IRS
said it will not apply any new restrictions retroactively. But theres
no guarantee the Feds wont challenge the deal in any event. The commotion draws even more attention to
Mayers failure to rejuvenate Yahoo
since she took the helm three years
ago. Revenue from the companys

Letters

mobile, video and social-networking


businesses did grow 60 per cent last
quarter from a year earlier, and it now
accounts for about a third of all sales.
Unfortunately, those businesses pay
handsomely to acquire internet trafc. Strip out these costs, and Yahoos
revenue was at. Meanwhile, income
next year is projected to be about half
of what it was in 2012.
Turning things around wont
get any easier. Advertising is a cyclical business, and the U.S. economic
recovery is getting long in the tooth.
The end of Yahoos search agreement
with Yahoo Japan in 2017 may vaporize $150 million of annual EBITDA.
The rise of advertisement blockers

will also hit the companys rapidly


growing mobile business.
And Facebook is sucking up a
greater chunk of internet advertising dollars, thanks to its intimate
knowledge of its users. No wonder
enthusiasm for Mayer seems to be
fading. Her appearance this week at
an interactive advertising conference
in New York attracted far fewer fans
than a year ago.
Yahoo has had six chief executives
over the past decade. None has managed to lead the company to success.
It may be time to admit that the task
is too much for any mere mortal.
The author is a Reuters Breakingviews columnist

The editor welcomes brief letters on topical issues. Opinions expressed here are not necessarily those of
the editor or publisher. They may be edited for clarity, space or legal considerations.
Send via e-mail to bdfeedback@ke.nationmedia.com

Jobseekers should not be charged for clearance certicates

his is a passionate appeal


to the government. Most
jobs advertised nowadays
are accompanied by a requirement
that the applicant should submit,
among others, certicates attesting to their good character.
In as much as this is a noble
requirement, more so enshrined
in the Constitution, especially in
Chapter Six, the process of going
about obtaining what is termed as
clearance certicates results in injustice that cannot be the object of
any well-meaning requirement.
Of concern are those bodies that
demand (for that is what happens
when something is mandatory and
a precondition) for payment of fees
before the clearance certicates
are issued.
Among them are the Higher Education Loans Board (Helb), the

Jobseekers queue to submit their


applications. FILE
National Police Service (mostly
for certicates of good conduct

which ideally should just be police


records) and the Credit Reference
Bureau (CRB), among others.
This is where the Kenya Revenue Authority (KRA) has an upper
edge. It issues the tax compliance
certicates and tax clearance certicates for free. All you need is to
be compliant.
Why should the above bodies
add agony to those seeking the
certicates, hustlers who do
not have money in the rst place?
Yet all they do is delve into their
records to obtain what is already
stored?
Arent all these bodies already
funded by the taxpayers, their employees being paid to do their work
and expected to serve?
Do the mathematics and your
realise these bodies have become
revenue generating entities instead

of providing services. I vividly remember asking why one should


pay to get Helbs clearance certicate, yet they never took a loan
from Helb in the rst place.
I hope this gets to the attention
of the president, the deputy president, politicians and consumer society organisations so that citizens
stop paying for vital records.
The KRA can lead the way by
showing these bodies how to go
about oering services that facilitate trust and condence of
the citizenry.
If anything, with KRA, the application to obtain a certicate can
be done online from anywhere in
the globe and there is even a feature to conrm the authenticity of
the certicate issued.
MAINA ROY
via email

Garissa town residents have been neglected due to insecurity

arissa town has in the


past few years been reduced from a once vibrant and fast-growing town to a
ghost town.
Traders who were lucky to
survive the terrorist attacks had
to close shops and relocate their
businesses.
Some workers like teachers have
vowed never to return thereby paralysing education.
Minorities who had called Garissa home for many years are in
constant fear and nd it hard deciding whether to sell their hardearned investments and properties
and relocate, or stay put.
The local leadership has made
it a non-issue with no attempts to

calm down or assure those still living in town of a better and improved
situation.
Both the national and county
governments have equally assumed
an air of nonchalance.
What these leaders dont realise is the fact that we need the
minorities to steer the town back
to its glory days of economic prosperity yet nothing has been done
to console and encourage them to
continue as before.
Local residents are now feeling the pinch as they are nding
it dicult to get tenants for their
properties while demand for local
products has fallen because consumers are eeing.
Sadly, victims of Al-Shabaab at-

tacks have to date not been compensated.


The head of state is yet to visit
the county to console the bereaved
families.
The government never thought
of coming up with a contribution
kitty like was done for Westgate
shopping mall victims in Nairobi.
We wonder for how long some
Kenyans will be treated more equal
than others.
Other than Al-Shabaab, the government also chose to make matters worse by brutally and mercilessly applying reactionary tactics
on innocent Garissa residents.
The other day, uniformed ofcers joined forces to unleash an
unjustiable and unreasonable

attack on peace-loving citizens.


A number of families lost their
relatives, others suered serious
and permanent injuries, business
premises were brought down and
others in the market centre were
torched, resulting in many more
shutting down.
It is disheartening that a government that is looked upon for
protection has decided to inict
more pain and injuries to an already wounded society.
Its our hope and prayer that the
peace that has been restored since
the appointment of regional coordinator Mohamud Ali Saleh will
bring back the Garissa we know.
HASSAN ABDILLE
via email

Motoists also
have a ight to
fai heaing
GAD OUMA
REGULATIONS

n May 10, 2013 then Roads minister


Franklin Bett gazetted the Kenya Roads
(Kenya National Highway Authority)
Regulations 2013, which were expected to enhance and promote good management, rehabilitation and maintenance of our roads.
It was the hope of the government that these
regulations would ultimately ensure that there
is sustainable and long-lasting use of our roads.
The Kibaki government spent billions of shillings to construct new roads throughout the
country and it was with this in mind that it
was deemed necessary to introduce these
regulations.
In implementing the regulation, the Kenya National Highways Authority has, among
other things, established mobile weighbridges
at various points on our roads. The ocers or
agents of the authority manning these weigh
bridges have unfortunately gained notoriety
for constantly harassing and seeking bribes
from motorists with impunity.
Of great concern to Kenyans is that in instances where alleged breach of regulations
take place, the agents and employees of the
KeNHA purport to charge the motorists with
alleged oences of overloading and thereafter
proceed to agrantly prescribe a fee as penalty
without aording the motorists due process
and fair administrative action which is lawful,
reasonable and procedurally fair as guaranteed
by Article 47 of our Constitution.

Unlawful
What in fact happens in most of these instances is the unlawful detention of driving
licences and other properties belonging to
the helpless and innocent motorists who are
subjected to a dubious and opaque process in
clear contravention of the Constitution.
The purported fees levied pursuant to overloading charges are only in the knowledge of
KeNHA ocials and are in fact nes arbitrarily
imposed as penalties for contravening the regulations. Contrary to the practice under these
regulations, the Constitution guarantees the
right to a fair hearing. It is therefore a legitimate expectation of all motorists that KeNHA
or any other enforcement agency shall aord
them a fair hearing as envisaged in Article 50 of
the Constitution. Furthermore, it is also a constitutional right that upon being informed of a
charge of overloading by KeNHA, the alleged offender would be subjected to due process rather
than arbitrary imposition of penalties.
Our courts have previously pronounced
themselves on the legality of some aspects of
the regulations by stating that the penalties imposed by KeNHA are by their very nature penal
provisions and the mere fact that the penalty is
euphemistically called a fee does not change its
intrinsic character of being a penalty.
The oence of overloading is therefore subject to strict proof. There can be no presumption
in law or in the regulations that a motorist is
automatically guilty the moment he is accused
of overloading.

12

BUSINESS DAILY | Thursday October 1, 2015

NEWS INDEPTH

Why the US
hides 700 million
baels of oil
undegound

THE
FIGURES

700
million

Amount of crude
oil barrels buried
underground
on four sites
across the US for
emergency

The worlds
superpowers
store an enormous
stockpile of oil in
secure caverns and
tanks around the
world. So why cant
we use it?

omething important, and valuaA couple of years later, the US began


ble, has been quietly hidden along building its SPR, lling caverns full of
Americas Gulf Coast. Across four crude oil. Were oil supplies to be severely
secure sites in unassuming locations lies disrupted in the future, now the US would
nearly 700 million barrels of oil buried have its own stores to tide them through
underground. A total of 60 subterranean a price spike and alleviate pressure on
caverns, carved into rock salt beneath global markets.
the surface, constitute the United States
As a government website boasts,
massive Strategic Petroleum
The SPRs formidable size
All of ou sites ae makes it a signicant deterReserve (SPR).
The facility was set up 40
located in what rent to oil import cutos and
years ago and there are now we call salt domes a key tool of foreign policy.
Its a neat, but expensive, idea.
many other huge oil stockThe current years budget for
piles dotted around the
BOB CORBIN
maintaining the SPR is Sh21
world. In fact, a whole host
US DEPARTMENT OF ENERGY
billion ($200million).
of countries have poured
Bob Corbin at the US Debillions of dollars into developing such facilities and
partment of Energy is the
more are on the way. But what are these person in charge of making sure that
reserves and why would anyone want money is spent wisely. All of our sites
to bury oil back into the ground in the are located in what we call salt domes,
rst place?
he explains.
The answer lies in the energy crisis of
The salt is impervious to the crude
1973. Arab oil exporters had cut o the oil, theres no mixing, no breaking down,
West from their supplies in response to so its a great storage facility. Corbin, who
US support for Israel during the Yom served for 22 years with the military in
the US Coast Guard, is proud of the four
Kippur War.
The world was so dependent on oil sites, which stretch from Baton Rouge,
from the Middle East that prices skyrock- Louisiana to the largest of the four, near
eted and petrol was soon being rationed the tiny city of Freeport, Texas. He refers
at US lling stations. In some cases, it to the vast salt storage chambers as my
dried up completely. People feared that caverns. The sites themselves, he says,
any petrol they had might be stolen and are very impressive.
But theres not much to see above
a few even took to protecting their cars
ground merely some wellbore heads
with rearms .

21

Sh

billion

The cost of
maintaining the
US Strategic
Petroleum
Reserves this
year.

4.6

Sh

trillion

The value of the


US strategic oil
stock pile.

and pipelines. The wellbores themselves


plunge thousands of feet into the caverns
below and can push water in at high pressure to retrieve the oil through a process
of displacement.
Corbin adds that managing such infrastructure comes with unique challenges.
The salt caverns are not completely stable,
for example. Sometimes bits of the walls
or ceilings may crumble away, causing
damage to machinery which has to be
carefully replaced. Its not possible for
workers to enter the caverns physically
so, like drilling oil out of a natural well,
it has to be done remotely.
However, special tools can be used to
give a little visibility. Periodically when
caverns are empty you can actually shoot
sonar images of the caverns, says Corbin.
And that gives you a three-dimensional
way of looking at them. Some have interesting shapes, he adds. The outline of one
chamber, for example, would resemble a
large ying saucer.
America has, in the past, relied on the
SPR to help get it out of sticky situations.
Take the rst Gulf War for example, in
which oil distribution in the Middle East
was disrupted. Or Hurricane Katrina in
2005, when requests for emergency oil
were approved within 24 hours of the
storms landfall.
The US is far from the only country
which has invested heavily in strategic oil
reserves. Japan has a series of sites where

Thursday October 1, 2015 | BUSINESS DAILY

13

NEWS INDEPTH
well over 500 million barrels of oil are stored
in large above-ground tanks. The facility at
Shibushi, for example is just o-shore. Following the catastrophic earthquake and
tsunami which struck Japan in 2011, calls
were made to expand the countrys oil stocks
in case of crises in the future which might
hamper oil distribution again.
The International Energy Agency (IEA)
oversees the release of oil from a wide range
of reserves internationally. Martin Young is
head of the agencys Emergency Policy Division: When a country signs up to the IEA
there are various obligations, he says. One
of the key obligations is to hold oil stocks
equivalent to 90 days imports.

Afican states
appove oil and
gold tax to pay
fo childens food

Specialised storage
But not all countries have salt domes to store
oil underground. Nor do all countries even
have large, specialised storage facilities
for SPR purposes. The UK, for instance,
has neither.
What the UK has is an obligation on
industry to hold oil at their existing sites
above what they would normally do, explains Young. That oil is quietly kept aside
by rms so that the government can access
it immediately, if and when its needed.
Two nations which are not members of
the IEA, India and China, have in recent
years ploughed funds into their own SPRs.
The Chinese in particular have ambitious
plans. A diverse array of storage locations,
dotted across the land will, it is hoped, eventually store almost as much as the Americans in a combination of state-owned facilities and commercial stockpiles.
The Chinese dont have the luxury of salt
caverns and have to opt instead for much
more expensive storage above ground in
tanks. Theyre easy to spot on Google Earth
and in satellite photos just look for the
rows of large white dots. The SPR site in
Zhenhai is just one of these and it currently
holds its full capacity of 33 million barrels.
It was big, says Young, who visited the
location a few years ago. What you see is
a whole load of oil tanks co-located with a
couple of oil reneries.
Narongpand Lisapahanya, an oil and gas
analyst at investment group CLSA, says that
spending money on developing an SPR is all
part of Chinas plan to be treated seriously

A man walks from a Lagos gas station with petroleum containers during a 2012 shortage. States now
opt to have petroleum reserves to minimise adverse economic effects of shortages. FILE

as a global superpower. If youre going to


be a superpower, youre going to have to
have the reserve, he says with a laugh. It
helps you become part of treaties globally. If
another superpower, during energy events,
asks for a release of reserves then China can
now take part.
No modern superpower, then, is complete without an SPR to call its own. While
the growth of reserves around the world is
generally welcomed, there are some who
worry that countries outside the IEA could
use their reserves to manipulate global oil
prices by selling o stocks at opportune
moments.
Of course, mitigating nasty price spikes is
exactly why SPRs were invented in the rst
place, as Carmine Diglio at the US Department of Energy explains: Protecting the US
economy from sharp increases in domestic
petroleum product prices was the purpose
of the SPR in 1975 and it remains the purpose of the SPR today, he says.
But theres an important line to draw
between that and using an SPR for ad hoc
manipulation of the worlds markets. On this
point, Martin Young is emphatic: The oil
stocks are not there for price management
as such, he explains, theyre there to correct a shortage in the market because of a

A man sits outside a closed electronics shop in Tokyo. Many traders were forced to close shop
after the economy shrunk in 2009 due to an oil crisis. Japan today has petroleum reserves. AFP

supply disruption. Theres a continual debate


about how SPR stocks should be used, though.
Some people think releases could be more aggressive while others question whether the
US has always taken full advantage of its SPR
oil, which is valued at roughly Sh4.6 trillion
($43.5bn).
For some folks, 700 million barrels in the
ground just looks like a gigantic pot of money,
comments Sarah Ladislaw, at the Centre for
Strategic and International Studies in Washington DC.
Few, though, would support initiatives to
fundamentally change how SPRs are used in
the US or elsewhere. The emphasis is denitely
on planning for emergencies and mitigating
supply problems.
Governments and the IEA prepare for such
situations by working out how they would draw
oil from SPRs in the event of a crisis.
There are even specialist rms which help
with this sort of planning, such as EnSys, which
has developed a sophisticated computer model
to simulate future pricing uctuations in the
oil industry.

Geopolitical mechanisations
This expertise helps EnSys to advise groups
which control SPRs as to when and why they
might consider distributing oil to local reneries. As CEO Martin Tallett explains, its
a numbers game. By how many barrels will
your imports be short during a given crisis?
How much would have to be released from an
SPR to ease that?
What we would do is sit down with somebody and say, OK, theres disruption in the Middle East, maybe North Africa as well, he says.
And we really start from the numbers rather
than spending a lot of time understanding indepth the geopolitical machinations that could
have caused the disruption.
As governments and energy bodies continue
planning for the worst, oil stockpiles only look
set to get bigger and bigger. Its obvious that
the US and many other countries believe their
SPRs are a good investment.
Despite all the preparations, its still possible that, during a future crisis, oil might not be
distributed quickly enough from the strategic
reserves. Would we get a repeat of 1973? Bob
Corbin, for one, wont say: I wouldnt want to
speculate on what could or could not occur, he
comments. Were prepared to deliver whenever we need to.
-BBC

Congo-Brazzaville, Guinea, Mali and Niger have agreed


to divert a portion of state revenues from oil, gold,
phosphate and uranium to a UN fund to ght childhood malnutrition.
From 2017, $0.01 (0.07) from every barrel of oil
and $0.60 from every gram of gold will go to pay for
supplements.
The scheme is expected to raise about Sh10.5 billion ($100m) a year.
Chronic malnutrition in sub-Saharan Africa affects more than one in three children under ve, the
UN says.
The scheme called Unitlife, which will be managed by the UN childrens agency (Unicef), was announced at the UNs annual gathering of world leaders in New York.
Ending hunger was one of 17 Sustainable Development Goals launched by at the UN on Friday.
The UN says it would take around $50bn over the
next 10 years to reduce by 40 per cent the number of
children under the age of ve whose growth is stunted
from malnutrition.
The UNs Philippe Douste-Blazy, who is leading the
Unitlife project, said he hoped to gradually add more
countries, like top oil producers Nigeria and Angola.
A similar scheme already takes 1 euro ($1.12;
0.74) per air ticket from countries signed up to the
it to fund projects ghting HIV/Aids, malaria and tuberculosis.

RESOURCE RICH CONTRIBUTORS:


CONGO-BRAZZAVILLE
Most of its GDP is from oil;
UNDP Human Development Index ranking: 140
out of 187 nations

GUINEA
Rich in iron ore, bauxite, diamonds and gold; UNDP
Human Development Index ranking: 179

MALI
One of Africas top gold producers; UNDP Human
Development Index ranking: 176

NIGER
One of the worlds leading uranium producers; UNDP
Human Development Index ranking: 187

A gold miner pans for gold in Koatie, Mali, , a few miles


from the border with its southwestern neighbour Guinea. AFP

14

BUSINESS DAILY | Thursday October 1, 2015

REGIONAL NEWS
AVIATION Regional states in talks to liberalise airspace, opening carrier to more business

Aispace deal oes KQ new lease of life


BY BD CORRESPONDENT

IN KAMPALA

enya is among four countries


drafting a new aviation plan
that could hand the ailing national carrier a new lease of life. Other
countries are Uganda, Rwanda and
South Sudan.
The four countries, which initially broke away from the East African
Community to form the Northern
Corridor Summit, are on the verge
of concluding talks to form a one airspace area.
The plan was initially raised by
South Sudan President Salva Kiir and
his Ugandan counterpart Yoweri Museveni as a way of dealing with Kenya
Airways high ticket prices.
However, deliberations on the
matter look set to turn around the
airlines fortunes.
Ocials in charge of aviation in
the ministries of transport of the
four countries and their directors
have agreed to liberalise the regional air space. Eectively, the agreement could see Kenya Airways and
RwandaAir, the only two operational
national carriers, assume the role in
the four countries, opening them to
bigger volume of business.
The two airlines will get full benets of a national carrier in South Sudan and Uganda airspace.
Regional director Eastern and
Southern Africa in the oce of the
International Civil Aviation Organisa-

KAMPALA
Ugandan shilling weakens due
to corporate, dollar demand
The Ugandan shilling lost substantial ground
on Tuesday, touching a key psychological
level as it was hammered by surging appetite
for dollars from corporate clients and commercial banks. Commercial banks quoted the
shilling at 3,690/3,700, weaker than Mondays close of 3,665/3,675. Traders have mentioned 3,700 in recent weeks as the next key
support level, saying breaching it was likely
to alarm the central bank and possibly trigger an intervention. Theres signicant buying interest (for dollars) from both corporate
clients and in the interbank, said David Bagambe, trader at Diamond Trust Bank.
Most corporate demand, he said, was coming from rms in the manufacturing and energy sectors.

JOHANNESBURG
South Africa raises its 2015
maize forecast after survey

A Kenya Airways plane at Jomo Kenyatta International Airport. FILE


tion Council Barry Kashambo said a
liberalised airspace will reduce fares
and increase exibility in travel.
The whole process is aimed at
eliminating restrictions and providing
guiding principles that will promote
and ease movement of persons, goods
and cargo by air, Mr Kashambo.
Together, Uganda, Kenya, Rwan-

da and South Sudan will negotiate


air service agreements with foreign
countries as one bloc.
The greatest benet is expected to
come from the classication of ights
between the four countries as domestic, building on the recent move to
allow use of national identication
card as a travel document to ease
movement within the bloc.

Partner states should develop


budgets and work plans for the establishment of a seamless Northern
Corridor airspace bloc and report
progress during the 11th summit,
said a directive signed by Presidents
Kenyatta, Kagame, Museveni and
Salva Kiir at the June summit meeting in Kampala, Uganda.

Rwandan ebel leades sentenced in Gemany


A German court has sentenced two
Rwandan rebel leaders for masterminding attacks on civilians in
the DRC.
Ignace Murwanashyaka and
Straton Musoni were accused of
ordering militias to commit mass
murder and rape between 2008
and 2009.
The trial took place under a law
which allows the prosecution of
foreigners for crimes committed
outside Germany. It was hailed as a
breakthrough in bringing Rwandan
rebels to justice.
Murwanashyaka, who is the
leader of the Democratic Forces for
the Liberation of Rwanda (FDLR),
was given a 13-year sentence, while
Musoni, his deputy, was sentenced
to eight years. Musoni was released
immediately because of the time he
has already spent in custody.
The presence of the FDLR in
eastern DR Congo was one of the
key factors behind years of conict
which have led to an estimated ve

BRIEFING

Rwandan war criminal Straton Musoni pictured in Stuttgart court in


2011. AFP
million deaths in the region.
The two men, who were arrested

in 2009, had both been living in Germany since the early 1990s and from
there co-ordinated attacks on civilians in the east of the DR Congo.
They faced accusations that they
ordered the killing of people because
they were not co-operating with the
FDLR. At the start of the trial four
years ago, German prosecutor Christian Ritscher said the two defendants had knowledge of everything,
at least most of it. The FDLR was
established by ethnic Hutus accused
of taking part in the 1994 Rwandan
genocide, who later set up their base
in DR Congo.
It became one of the most powerful rebel forces operating in the east
of the country but has rarely inltrated Rwanda. Rwanda, now led
by ethnic Tutsis, sees the FDLR as a
threat to its stability and, along with
the UN, has repeatedly demanded
its disarmament.
It has twice invaded DR Congo,
saying it is trying to prevent attacks
by the FDLR.

The UN had been planning to


launch an oensive with DR Congos army against the rebels at the
beginning of this year, but pulled
out because of a row over the human rights record of two Congolese
generals who were involved in the
mission.
The two men, who were arrested
in 2009, had both been living in Germany since the early 1990s and from
there co-ordinated attacks on civilians in the east of the DR Congo.
They faced accusations that they
ordered the killing of people because
they were not cooperating with the
FDLR. At the start of the trial four
years ago, German prosecutor Christian Ritscher said the two defendants had knowledge of everything,
at least most of it.
The FDLR was established by
ethnic Hutus accused of taking
part in the 1994 Rwandan genocide, who later set up their base in
DR Congo.
-BBC

South Africa slightly raised its 2015 maize


output forecast to 9.94 million tonnes after
silo delivery data suggested the crop was
slightly bigger than previously thought.
South Africa is still expected to reap its lowest staple crop harvest since 2007, around a
third less than the 2014 crop due to scorching
drought which pushed prices to record highs
in July. The crop in Africas biggest producer
will consist of an estimated 4.7 million tonnes
of white maize and 5.24 million tonnes of yellow, the governments Crop Estimates Committee said in its nal forecast for the year.

BUJUMBURA
Burundi ination down to
4.2 pc year-on-year in Aug

Burundis ination eased to 4.2 per cent


year-on-year in August from eight per cent
in July, ofcials said, as a surge in food prices
exacerbated by a political crisis showed
signs of slowing. More than 130 people have
died, the UN estimates, since protesters took
to the streets in April, accusing the president
of breaking the constitution by standing
again in elections. Year-on-year ination initially soared, from 4.7 per cent in March, as
unrest drove up the price of essential commodities.

KIGALI
Rwanda central bank holds
says private sector credit up
Rwandas central bank held its repo rate at
6.5 per cent on Tuesday, saying it was achieving its objective of increasing nancing to the
economy without the exchange rate suffering signicant pressure.
Rwanda has held the benchmark rate steady
since June 2014, when it cut the repo rate by
50 basis points. Central bank governor John
Rwangombwa also told a news conference
that he expected ination to be in the range
of 3.3 per cent to 4.6 per cent by the year
end. He had previously forecast that ination
would not exceed 3.5 per cent by the end of
2015. Rwandas urban ination rate, which
the central bank watches for monetary policy
purposes, rose to three per cent year-on-year
in August from 2.3 per cent a month before.

Thursday October 1, 2015 | BUSINESS DAILY

BUSINESS DAILY

BUSINESS

THURSDAY, OCTOBER 1, 2015

TECHNOLOGY
SYSTEMS
INNOVATIONS
INFORMATION
GADGET REVIEWS

New mobile pesciption app enables


patients stick to thei medication plan

inside>>

HEALTH

MobiDawa aims
to tackle the issue
of non- adherence,
which has become a
growing concern to
medical practitioners

Different thinking
needed for digital
education delivery

Page 16>
TECHNOLOGY

BY ANGELA OKETCH

Computer scientist James Odede has


developed a mobile phone prescription
software to help patients take the right
medication at the right time.
The software called MobiDawa which
is available on Google Play store helps
patients to search for information about
drugs, dosage and prescriptions.
It also has a reminder notication,
improving patients adherence to drugs
and outcomes.
Non-adherence to medications is currently estimated to cause about 50 per
cent of all treatment failures, according
to medics.
The practice of medicine and public
health supported by mobile devices has
emerged in recent years in Kenya and
other developing countries as a means
of providing greater access to larger segments of the population and improving
the capacity of health systems in such
countries.
MobiDawa joins a number of rms
such as WelTel, mPedigree and the recently launched Hello Doctor which have
partnered with Safaricom and Commercial Bank of Africa to oer medical consultations on their phones.
Mr Odede says he has been a victim of
wrong drug dosage that almost cost him
his life and drove him to come up with
the app that can curb such disasters.
I have suered in the hands of quacks
posing as medics and after completing
my course last year, I decided to do something that would enable patients to get
the right treatment and avoid what happened to me, said the Maseno University graduate.
Mr Odede and MobiDawa co-founder
Simeon Obwogo who is also a software
developer came up with the handy tool
that makes it easier to stick to strict medication orders, especially when taking
multiple prescriptions.
According to Kisumu County Chief

MobiDawa app developer James Odede shows a client how the application works.
Right, a user looks at some features of the application. ANGELA OKETCH

Ocer of Health Ojwang Lusi, non-adherence means that patients take their
mediation in the wrong way, in the wrong
dose or in combination with an incompatible second drug. Some patients do
not know the importance of taking medications regularly
It will be a bit dicult for everyone
to use the application more so the older
people but if they can make use of it, it
will address the issues of prescription
and wrong dosage, Dr Ojwang said.

How it works
A patient c an download the application
Mobidawa from the google play store and
search for the name of the drug he wants.
The application contains names of top
100 drugs used in the country.
Users must enter their ages, weights,
and gender, among other details, to know
the dosage they would require. They will
then be instructed on how to take the
drug and what to avoid when under
medication.
A feedback portal is also provided for
patients to say whether they got well after
taking their medicine, whether they experienced any complications or not and
if they would use the drug again.
Patients can search for information

about their medication in the drug database.


Other than the dosage, the application also provides drug uses, side eects
and precautions, said Mr Odede during the East African Community Lake
Victoria Basin Commission Secretariat
Conference on Integrated Population,
Health and Environment in Kisumu last
month. The mobile phone application
can be used on both smartphones and
feature phones.
Developed four months ago, the app
aims to serve as a guide for over-thecounter drugs so that patients can make
informed decisions by themselves.
Users can also provide feedback to
pharmaceutical companies on the side
eects of the medicines for the companies to improve their service.
Patients sometimes buy drugs over
the counter but develop side eects,
our application provides a platform to
report on the side eects of such drugs,
he said. They also work with companies
in what he terms a business- to-business
approach: We target pharmaceutical
companies, governments and insurance
companies to pay for our services while
making it free for the end users.
We plan to charge them per patient

Longhorn bets on
digital books to open
new revenue chapter

Pages 16-17>
SECURITY

feedback for surveys done via our app.


Government institutions are also interested in the data and we shall include
them, said Mr Odede.
Patients can order and pay for the
drugs through MobiDawa and wait for
them to be delivered.
We intend to use Orange Billing API
to facilitate the payment process. This is
also to ensure continuous supply of drugs
for patients with terminal diseases and
cannot easily access the medicine.
The app developers also say they are
in talks with the Pharmacy and Poisons
Board to verify and increase the content
of the application.
AOketch@ke.nationmedia.com

Phonejoy Gamepad
2 offers Android
enthusiasts great
user experience

Page 18 >>
GADGET REVIEW

15

16

BUSINESS DAILY | Thursday October 1, 2015

Thursday October 1, 2015 | BUSINESS DAILY

DigitalBusiness

DigitalBusiness
Technology
MBUGUA NJIHIA

Longhon bets on digital books to open new evenue chapte


STRATEGY NSE-listed

publisher plans to link


up with local ICT rms
to offer its content on
learners devices

Tech
Talk
BY OKUTTAH MARK
New Ushahidi BRCK Education head Nivi Mkherjee (right) with pupils. FILE

Dieent thinking needed


fo digital education delivey

hink Dierent, the two


words made famous by
Apple under the leadership of the late Steve Jobs in an
advertising campaign back in
1997 have never jumped into active memory as they did when the
team at Ushahidi launched BRCK
Education with Nivi Mukherjee
the head of the new division.

The opportunity
The Jubilee government had
education on its transformative
election agenda and the road to
Vision 2030 would be catalysed
by turning education on top of its
head and going digital. The budget
estimates for this run into the billions of shillings with the digital
dividend projected at several factors of that.

The problem
Tethered thinking saw organisations with vested interest, work
simply with what is available in
the market at face value. Partnerships with original equipment
manufacturers (OEMs) made
the most sense but middlemen
drove up prices. Some even opted to setup manufacturing plants.
Everyone seemed focused on the
laptop supply side of what is a
massive ecosystem.

A different path
Problems are solved in dierent
ways but it is always smarter to
increase strategic odds at tackling
a problem by ensuring that you
have as many parts of the solution
matrix under your control or easily addressable. That is the core of
solution architecture.
The primary consumer at scale,
for whom the benets of digital
education will be felt most, is the
rural pupil. Despite the govern-

17

ments best intentions at rural


electrication it will take years to
achieve universal coverage. The
structure of our learning also does
not require 100 per cent digital
engagement but that learning is
augmented by technology. Therefore mobility is key to ensure that
sharing of resources is easy. Form
factor must rank high due the nature of interactions by the target
audience and security considered
given that most schools have basic
facilities.
Here is how the KioKit checks
all the boxes on the solution matrix. The BRCK is a ruggedised
WiFi router with an onboard
battery plus storage capable of
connecting 50 devices with content caching in the expected event
of power and connectivity outage.
The Kio tablet is designed for use
by children and has multimedia
capabilities.
Ruggedised for a longer life
span, they are also locked to discourage theft, with the design also
making it stand out. Controls for a
connected world are also inbuilt
to ensure child safety.
These two main devices; one
wireless router and upto 40 tablets are nested into a mobile unit,
hence the kit. The case is hardened, water resistant and designed
to charge the entire system via a
single plug.
The backend also runs on local cloud infrastructure by service
provider Angani and the cost benets of this are immense especially
in light of content streaming and
syncing via mobile data or other
available connectivity options.
As with all innovation, it seems
obvious after the fact.
Mr Njihia is CEO of Symbiotic |
www.mbuguanjihia.com | @mbuguanjihia

onghorn publishes is betting on digital books to reach a wider audience


and grow its revenue.
The only Nairobi Securities Exchange
(NSE)- listed publisher in an interview with
the Business Daily said it has digitised all its
books available on hardcopy and are currently available on Amazon and Worldreader.
The rm has also signed a partnership
with Samsung to avail its digitised content
on its devices and is also seeking partnership with local mobile telecommunication
rms to oer the same.
Simon Ngigi, Longhorn managing director said that other than reducing the printing costs, digital content is easy and faster
to distribute.
The publisher is also targeting to capture
the tech savvy and the youth who prefer interacting with computer devices as opposed
to hardcopy books.
What we see in the coming years is that
more and more revenue will be generated
from the digital books, Mr Ngigi said.
By availing all our books in digital formats, this is not only a win to us but also to
our customers since the pricing of the digital
books is almost half the cost of the hardcopies which oers quite some savings to our
clients, he added.
To mitigate the chances of copyright in-

Pupils use
laptops to
conduct
their studies.
Longhorn
Publishers
has
positioned
itself to
provide digital
content for
learners.
JARED NYATAYA

fringement of the digitised books he said that


all the books are encrypted by the IT platform
providers they have partnered with.
As a matter of fact we are experiencing
more abuse of copyright infringement on our
hardcopy books compared to the digitised versions, Mr Ngigi said.
The rm which recorded a 24.4 per cent
drop in net prot following reduced sales in
the year ended June 30, is also targeting county
governments with its digitised content .
The company registered Sh71.7 million in
prot after tax compared to Sh94.9 million
made in the previous year.
During the same period, the rms revenues dipped by 39.3 per cent to Sh848.4
million compared to Sh1.4 billion in the same
period last year.
The book-selling company, suered from

low sales that was also reected in the decline


in the gross prot by 30.1 per cent to stand at
Sh474.6 million.
The reduction in the turnover was mitigated by signicant saving in the companys
selling and distribution costs in the exports
markets, the rm said in a statement issued
last week.

Reap big
Longhorns push for digital books comes on the
backdrop of a government initiative to avail all
pupils with computer devices starting January.
That means reading materials to be used must
be provided in the digital format.
Publishers, animators and local universities
are among those tipped to reap big from Kenyas Sh17 billion Digital Literacy Programme.
Victor Kyalo , the ICT Authority chief ex-

ecutive said time was long overdue for Kenyas education sector to go digital, adding that
opportunities presented by the shift far outweigh the costs.
The next phase of the knowledge economy
will require a smart society where people can
exploit their talents, identify opportunities
and be able to grow with those opportunities, he said.
Last week David Waweru the Kenya Publishers Association chairman pointed out that
the initiative will only pay o provided that,
among other things, freedom of the Press is
preserved by stakeholders.
The spirit of digital is to provide more opportunities to readers, writers, and content
creators; not limiting options. It is about greater
liberalisation of content creation and provision, not about consolidation, he said during

the launch of the 18th Nairobi International


Book Fair at Nairobis Sarit Centre.
As publishers, we must engage top gear in
creating digital content. Having said that, we
believe that the digital book will coexist with
the physical book; the two are not mutually
exclusive, he added.
The Kenya Institute of Curriculum Development (KICD) also organised a conference
from yesterday to October 2 that features renowned researchers, innovators, and practitioners across all levels of education in Kenya,
providing delegates with insights on the latest
trends and practical tools for the advancement
of mobile and online learning.
Advancements in technology are not limited to just improving how processes or machines work, but are now taking centre stage
in how teaching and learning occur, KICD said
in a statement.
Other than the publishers computing device manufacturers have recently unveiled
devices targeting e- learning.
Last week BRCK Education, a division
of BRCK - a Nairobi based technology rm
launched its BRCK KioKit into the market.
The tablet, a component of a portable kit
made up 40 ruggedised BRCK Kio tablets that
cost Sh524,497 ($5,000) will be running webbased content and locally cached videos that
will oer the pupils exposure to educational
information. A piece cost Sh10,385 ($99). The
rm has also entered into partnership with several international and local organisations such
as Pearson, Intel- Education, e-Limu, KnowZone, and e-Kitabu in an eort to rene learners experience of accessing digital content.
We wanted to take a holistic approach to
education, hence the design of an easy to use
digital solution that is uniquely tailored for the
African environment. We are deploying a content-agnostic solution that allows us to curate
localised and culturally relevant digital content
that will improve the learning experience and
give a digital edge to millions of children across
the continent, said Erik Hersman, BRCK CEO
during the launch.
mokuttah@ke.nationmedia.com

Tech bytes
Konza authority signs investment
partnerships with US business lobby
Konza Technopolis Authority has signed a partnership with an American business lobby, The National
Business League (NBL) aimed at linking up with
international markets. Through the agreement, local SMEs stand acquire development opportunities
through export promotion, joint ventures, strategy
alliance and direct investments.
The NBL is national federation of individuals, rms
and associations engaged in business enterprises,
with members drawn from over 37 states whose
aim is to support its members access business opportunities in deferent parts of the world.
We have received more than 200 expressions of
interest from investors both local and international.
We have registered good interest from the private
sector particularly the telecom operators and leading banks who want to locate their data centres and
other ICT investments in Konza said Eng John Tanui
(right), CEO KoTDA.

SimbaPays bank accounts opening app


earns rm slot in global DEMO event
SimbaPay a digital money transfer provider is the
winner of the prestigious DEMO Africa 2015 event
which was held in Lagos, Nigeria.
SimbaPay now automatically qualies for the global
DEMO event that will be held in Silicon Valley, US.
At DEMO Africa 2015, SimbaPay showcased a new

service which enables Africans living abroad to


seamlessly open bank accounts in Africa using its
app.
We are totally excited and dedicate this win to our
customers. Its because of their continued feedback and support that we were able to develop our
new in-app bank account opening service, Nyasinga Onyancha, CEO of SimbaPay commenting said
in a statement.Also in Lagos as part of the team
that made the Demo Africa winning pitch was Dan
Howard, vice president of engineering at SimbaPay.
He added that This win is an awesome reward and
inspiration for the endless customer-driven innovations were undertaking in the remittances space.
DEMO Africa 2015 launched 30 of the most innovative start-ups in Africa and highlighted some of the
best new technology innovations from across the
continent. The 30 nalists were the top picks from
two rigorous screening processes of over 600 applicants on their ability to link creativity, innovation
and effectiveness.

The nal vetting and adjudication was done by a


pan-African panel of judges comprised of entrepreneurs, Vice Chancellors and academia.

Commercial Bank of Ethiopia eyes new


software to enhance fraud detection
The Commercial Bank of Ethiopia (CBE) has
launched NetGuardians and TeamMate systems to
further enhance its capacity to protect customers
data and mitigate against risks.
The systems were implemented by SOFGEN, a leading global banking technology consulting company,
which is part of the giant TechMahindra group of
companies.
The NetGuardians and TeamMate systems enable
the lender to see all transactions across the bank
from multiple angles, in real-time, round the clock,
giving it the ability to immediately detect any suspicious movements and take preventive action.
Investment in technology that protects against
risks like fraud, data theft and information leaks is

critical to build trust, as well as to our overall service delivery and performance, says Ephrem Mekuria, communications manager at CBE.
NetGuardians and TeamMate systems are designed
on the recognition that human behaviour is behind
fraudulent transactions, and it uses smart behaviour analytics based on policy rules and predictive
analytics.
With big data to correlate actions from across the
different bank systems, it can identify potential
fraud before it happens. It tracks and audits all activities continuously, in real time, and instantly
alerts risk managers to any deviations.
We recognise that CBE is strongly motivated to
improve fraud mitigation, operational and IT risk
management, transparency, and governance. Were
committed to providing them with innovative solutions that are directly aligned with their needs and
meet their most serious challenges, NetGuardians
CEO Jol Winteregg said.

Tech in action
BY OKUTTAH MARK

Mobile payments m
Beyonic tagets NGOs
Mobile payments rm Beyonic has
signed a partnership with Mobile
Accord in a deal that will increase
its footprint across Africa with a
focus on NGOs.
Beyonic operating in Kenya
and Uganda says the deal with
developer Mobile Accord will
build its relationship with leading mobile carriers to expand to
25 additional countries.
Mobile Accord works with 78
mobile carriers in 44 countries in
Africa and Asia, a footprint making the deal juicy for Beyonic.
Mobile Accord and Beyonic will
implement the roadmap, starting
with 10 markets: Cote DIvoire,
Ghana, Liberia, Malawi, Mozambique, Niger, Rwanda, Sierra Leone, Tanzania, and Zambia.
Beyonics platform enables
businesses to deploy, track and
manage two-way mobile money
payments over multiple mobile
carriers.
For those working in emerging markets, cash payments are
riddled with security and logistical issues. Over the past few years,
mobile money has become popular both for businesses looking
to move away from cash, and for
individuals who do not have the
means to open traditional bank
accounts, said Luke Kyohere,
CEO, Beyonic
Beyonics system allows NGOs
and businesses to utilise mobile
money with very little set-up and
we are excited to expand this tool
across Africa.
Mobile money allows those in
emerging markets to pay or receive
money through even the most basic phones.
Mobile payments enable fast,
secure money transfers and reduce losses associated with cash

Beyonic has deals with rms like MTN


and Safaricom. FILE
payments.
However, until now, businesses
making mobile payments needed
to connect individually to every
carrier they wanted to send money
through, a time-consuming process for organisations operating in
many countries.

One platform
Beyonics cross-carrier solution
allows businesses to manage
payments in multiple countries
through one platform.
Using Beyonics online interface, companies can manage payments to employees, aid beneciaries, and vendors.
The ability to make and track
payments across any network
opens up mobile money to businesses that did not have the resources to connect to every carrier
in a country.
Beyonic has deals with, among
others, MTN, Airtel Uganda and
M-Pesa, and organisations like
Save the Children, Educate! and
Innovations for Poverty Action.

blog of the week


\ http://www.Diasporamessager.com
The International Telecommunications Union has awarded President Uhuru Kenyatta a
prestigious award for promoting the use of ICT for sustainable development.
The ICTs in Sustainable Development Award honours the important contributions made by
leaders, on behalf of their countries, towards harnessing the potential of information and
communication technologies (ICTs) for sustainable development.
President Kenyatta was given the award for the impressive progress Kenya has made in ICT
development and the important role technology is playing in achieving development and service
delivery goals.
The award is also meant to encourage nations to seek technological solutions to meet national
and global aspirations for a sustainable and inclusive future.
NOTE: Blog quotes in this section are edited and do not in any way represent the views of

this newspaper or its editors.

16

BUSINESS DAILY | Thursday October 1, 2015

Thursday October 1, 2015 | BUSINESS DAILY

DigitalBusiness

DigitalBusiness
Technology
MBUGUA NJIHIA

Longhon bets on digital books to open new evenue chapte


STRATEGY NSE-listed

publisher plans to link


up with local ICT rms
to offer its content on
learners devices

Tech
Talk
BY OKUTTAH MARK
New Ushahidi BRCK Education head Nivi Mkherjee (right) with pupils. FILE

Dieent thinking needed


fo digital education delivey

hink Dierent, the two


words made famous by
Apple under the leadership of the late Steve Jobs in an
advertising campaign back in
1997 have never jumped into active memory as they did when the
team at Ushahidi launched BRCK
Education with Nivi Mukherjee
the head of the new division.

The opportunity
The Jubilee government had
education on its transformative
election agenda and the road to
Vision 2030 would be catalysed
by turning education on top of its
head and going digital. The budget
estimates for this run into the billions of shillings with the digital
dividend projected at several factors of that.

The problem
Tethered thinking saw organisations with vested interest, work
simply with what is available in
the market at face value. Partnerships with original equipment
manufacturers (OEMs) made
the most sense but middlemen
drove up prices. Some even opted to setup manufacturing plants.
Everyone seemed focused on the
laptop supply side of what is a
massive ecosystem.

A different path
Problems are solved in dierent
ways but it is always smarter to
increase strategic odds at tackling
a problem by ensuring that you
have as many parts of the solution
matrix under your control or easily addressable. That is the core of
solution architecture.
The primary consumer at scale,
for whom the benets of digital
education will be felt most, is the
rural pupil. Despite the govern-

17

ments best intentions at rural


electrication it will take years to
achieve universal coverage. The
structure of our learning also does
not require 100 per cent digital
engagement but that learning is
augmented by technology. Therefore mobility is key to ensure that
sharing of resources is easy. Form
factor must rank high due the nature of interactions by the target
audience and security considered
given that most schools have basic
facilities.
Here is how the KioKit checks
all the boxes on the solution matrix. The BRCK is a ruggedised
WiFi router with an onboard
battery plus storage capable of
connecting 50 devices with content caching in the expected event
of power and connectivity outage.
The Kio tablet is designed for use
by children and has multimedia
capabilities.
Ruggedised for a longer life
span, they are also locked to discourage theft, with the design also
making it stand out. Controls for a
connected world are also inbuilt
to ensure child safety.
These two main devices; one
wireless router and upto 40 tablets are nested into a mobile unit,
hence the kit. The case is hardened, water resistant and designed
to charge the entire system via a
single plug.
The backend also runs on local cloud infrastructure by service
provider Angani and the cost benets of this are immense especially
in light of content streaming and
syncing via mobile data or other
available connectivity options.
As with all innovation, it seems
obvious after the fact.
Mr Njihia is CEO of Symbiotic |
www.mbuguanjihia.com | @mbuguanjihia

onghorn publishes is betting on digital books to reach a wider audience


and grow its revenue.
The only Nairobi Securities Exchange
(NSE)- listed publisher in an interview with
the Business Daily said it has digitised all its
books available on hardcopy and are currently available on Amazon and Worldreader.
The rm has also signed a partnership
with Samsung to avail its digitised content
on its devices and is also seeking partnership with local mobile telecommunication
rms to oer the same.
Simon Ngigi, Longhorn managing director said that other than reducing the printing costs, digital content is easy and faster
to distribute.
The publisher is also targeting to capture
the tech savvy and the youth who prefer interacting with computer devices as opposed
to hardcopy books.
What we see in the coming years is that
more and more revenue will be generated
from the digital books, Mr Ngigi said.
By availing all our books in digital formats, this is not only a win to us but also to
our customers since the pricing of the digital
books is almost half the cost of the hardcopies which oers quite some savings to our
clients, he added.
To mitigate the chances of copyright in-

Pupils use
laptops to
conduct
their studies.
Longhorn
Publishers
has
positioned
itself to
provide digital
content for
learners.
JARED NYATAYA

fringement of the digitised books he said that


all the books are encrypted by the IT platform
providers they have partnered with.
As a matter of fact we are experiencing
more abuse of copyright infringement on our
hardcopy books compared to the digitised versions, Mr Ngigi said.
The rm which recorded a 24.4 per cent
drop in net prot following reduced sales in
the year ended June 30, is also targeting county
governments with its digitised content .
The company registered Sh71.7 million in
prot after tax compared to Sh94.9 million
made in the previous year.
During the same period, the rms revenues dipped by 39.3 per cent to Sh848.4
million compared to Sh1.4 billion in the same
period last year.
The book-selling company, suered from

low sales that was also reected in the decline


in the gross prot by 30.1 per cent to stand at
Sh474.6 million.
The reduction in the turnover was mitigated by signicant saving in the companys
selling and distribution costs in the exports
markets, the rm said in a statement issued
last week.

Reap big
Longhorns push for digital books comes on the
backdrop of a government initiative to avail all
pupils with computer devices starting January.
That means reading materials to be used must
be provided in the digital format.
Publishers, animators and local universities
are among those tipped to reap big from Kenyas Sh17 billion Digital Literacy Programme.
Victor Kyalo , the ICT Authority chief ex-

ecutive said time was long overdue for Kenyas education sector to go digital, adding that
opportunities presented by the shift far outweigh the costs.
The next phase of the knowledge economy
will require a smart society where people can
exploit their talents, identify opportunities
and be able to grow with those opportunities, he said.
Last week David Waweru the Kenya Publishers Association chairman pointed out that
the initiative will only pay o provided that,
among other things, freedom of the Press is
preserved by stakeholders.
The spirit of digital is to provide more opportunities to readers, writers, and content
creators; not limiting options. It is about greater
liberalisation of content creation and provision, not about consolidation, he said during

the launch of the 18th Nairobi International


Book Fair at Nairobis Sarit Centre.
As publishers, we must engage top gear in
creating digital content. Having said that, we
believe that the digital book will coexist with
the physical book; the two are not mutually
exclusive, he added.
The Kenya Institute of Curriculum Development (KICD) also organised a conference
from yesterday to October 2 that features renowned researchers, innovators, and practitioners across all levels of education in Kenya,
providing delegates with insights on the latest
trends and practical tools for the advancement
of mobile and online learning.
Advancements in technology are not limited to just improving how processes or machines work, but are now taking centre stage
in how teaching and learning occur, KICD said
in a statement.
Other than the publishers computing device manufacturers have recently unveiled
devices targeting e- learning.
Last week BRCK Education, a division
of BRCK - a Nairobi based technology rm
launched its BRCK KioKit into the market.
The tablet, a component of a portable kit
made up 40 ruggedised BRCK Kio tablets that
cost Sh524,497 ($5,000) will be running webbased content and locally cached videos that
will oer the pupils exposure to educational
information. A piece cost Sh10,385 ($99). The
rm has also entered into partnership with several international and local organisations such
as Pearson, Intel- Education, e-Limu, KnowZone, and e-Kitabu in an eort to rene learners experience of accessing digital content.
We wanted to take a holistic approach to
education, hence the design of an easy to use
digital solution that is uniquely tailored for the
African environment. We are deploying a content-agnostic solution that allows us to curate
localised and culturally relevant digital content
that will improve the learning experience and
give a digital edge to millions of children across
the continent, said Erik Hersman, BRCK CEO
during the launch.
mokuttah@ke.nationmedia.com

Tech bytes
Konza authority signs investment
partnerships with US business lobby
Konza Technopolis Authority has signed a partnership with an American business lobby, The National
Business League (NBL) aimed at linking up with
international markets. Through the agreement, local SMEs stand acquire development opportunities
through export promotion, joint ventures, strategy
alliance and direct investments.
The NBL is national federation of individuals, rms
and associations engaged in business enterprises,
with members drawn from over 37 states whose
aim is to support its members access business opportunities in deferent parts of the world.
We have received more than 200 expressions of
interest from investors both local and international.
We have registered good interest from the private
sector particularly the telecom operators and leading banks who want to locate their data centres and
other ICT investments in Konza said Eng John Tanui
(right), CEO KoTDA.

SimbaPays bank accounts opening app


earns rm slot in global DEMO event
SimbaPay a digital money transfer provider is the
winner of the prestigious DEMO Africa 2015 event
which was held in Lagos, Nigeria.
SimbaPay now automatically qualies for the global
DEMO event that will be held in Silicon Valley, US.
At DEMO Africa 2015, SimbaPay showcased a new

service which enables Africans living abroad to


seamlessly open bank accounts in Africa using its
app.
We are totally excited and dedicate this win to our
customers. Its because of their continued feedback and support that we were able to develop our
new in-app bank account opening service, Nyasinga Onyancha, CEO of SimbaPay commenting said
in a statement.Also in Lagos as part of the team
that made the Demo Africa winning pitch was Dan
Howard, vice president of engineering at SimbaPay.
He added that This win is an awesome reward and
inspiration for the endless customer-driven innovations were undertaking in the remittances space.
DEMO Africa 2015 launched 30 of the most innovative start-ups in Africa and highlighted some of the
best new technology innovations from across the
continent. The 30 nalists were the top picks from
two rigorous screening processes of over 600 applicants on their ability to link creativity, innovation
and effectiveness.

The nal vetting and adjudication was done by a


pan-African panel of judges comprised of entrepreneurs, Vice Chancellors and academia.

Commercial Bank of Ethiopia eyes new


software to enhance fraud detection
The Commercial Bank of Ethiopia (CBE) has
launched NetGuardians and TeamMate systems to
further enhance its capacity to protect customers
data and mitigate against risks.
The systems were implemented by SOFGEN, a leading global banking technology consulting company,
which is part of the giant TechMahindra group of
companies.
The NetGuardians and TeamMate systems enable
the lender to see all transactions across the bank
from multiple angles, in real-time, round the clock,
giving it the ability to immediately detect any suspicious movements and take preventive action.
Investment in technology that protects against
risks like fraud, data theft and information leaks is

critical to build trust, as well as to our overall service delivery and performance, says Ephrem Mekuria, communications manager at CBE.
NetGuardians and TeamMate systems are designed
on the recognition that human behaviour is behind
fraudulent transactions, and it uses smart behaviour analytics based on policy rules and predictive
analytics.
With big data to correlate actions from across the
different bank systems, it can identify potential
fraud before it happens. It tracks and audits all activities continuously, in real time, and instantly
alerts risk managers to any deviations.
We recognise that CBE is strongly motivated to
improve fraud mitigation, operational and IT risk
management, transparency, and governance. Were
committed to providing them with innovative solutions that are directly aligned with their needs and
meet their most serious challenges, NetGuardians
CEO Jol Winteregg said.

Tech in action
BY OKUTTAH MARK

Mobile payments m
Beyonic tagets NGOs
Mobile payments rm Beyonic has
signed a partnership with Mobile
Accord in a deal that will increase
its footprint across Africa with a
focus on NGOs.
Beyonic operating in Kenya
and Uganda says the deal with
developer Mobile Accord will
build its relationship with leading mobile carriers to expand to
25 additional countries.
Mobile Accord works with 78
mobile carriers in 44 countries in
Africa and Asia, a footprint making the deal juicy for Beyonic.
Mobile Accord and Beyonic will
implement the roadmap, starting
with 10 markets: Cote DIvoire,
Ghana, Liberia, Malawi, Mozambique, Niger, Rwanda, Sierra Leone, Tanzania, and Zambia.
Beyonics platform enables
businesses to deploy, track and
manage two-way mobile money
payments over multiple mobile
carriers.
For those working in emerging markets, cash payments are
riddled with security and logistical issues. Over the past few years,
mobile money has become popular both for businesses looking
to move away from cash, and for
individuals who do not have the
means to open traditional bank
accounts, said Luke Kyohere,
CEO, Beyonic
Beyonics system allows NGOs
and businesses to utilise mobile
money with very little set-up and
we are excited to expand this tool
across Africa.
Mobile money allows those in
emerging markets to pay or receive
money through even the most basic phones.
Mobile payments enable fast,
secure money transfers and reduce losses associated with cash

Beyonic has deals with rms like MTN


and Safaricom. FILE
payments.
However, until now, businesses
making mobile payments needed
to connect individually to every
carrier they wanted to send money
through, a time-consuming process for organisations operating in
many countries.

One platform
Beyonics cross-carrier solution
allows businesses to manage
payments in multiple countries
through one platform.
Using Beyonics online interface, companies can manage payments to employees, aid beneciaries, and vendors.
The ability to make and track
payments across any network
opens up mobile money to businesses that did not have the resources to connect to every carrier
in a country.
Beyonic has deals with, among
others, MTN, Airtel Uganda and
M-Pesa, and organisations like
Save the Children, Educate! and
Innovations for Poverty Action.

blog of the week


\ http://www.Diasporamessager.com
The International Telecommunications Union has awarded President Uhuru Kenyatta a
prestigious award for promoting the use of ICT for sustainable development.
The ICTs in Sustainable Development Award honours the important contributions made by
leaders, on behalf of their countries, towards harnessing the potential of information and
communication technologies (ICTs) for sustainable development.
President Kenyatta was given the award for the impressive progress Kenya has made in ICT
development and the important role technology is playing in achieving development and service
delivery goals.
The award is also meant to encourage nations to seek technological solutions to meet national
and global aspirations for a sustainable and inclusive future.
NOTE: Blog quotes in this section are edited and do not in any way represent the views of

this newspaper or its editors.

18

BUSINESS DAILY | Thursday October 1, 2015

DigitalBusiness
Gadget reviews

GADGET360

Apple Watch software enhances features


Apple Watchs new software brings useful enhancements, though its not the same as getting a new watch.
That same watch can now do more. For the rst time, non-Apple apps are able to display video and use the watchs sensors
and controls. In addition, the watch now works with Wi-Fi, extending how far you can go without a phone with you. These
enhancements address many of
my initial frustrations with the
watch. But the hardware itself
isnt changing, apart for some
new colour and band choices. The
watchOS 2 update for Apple Watch
arrived Monday, delayed by a week
as Apple xed an unspecied bug.

Phonejoy Gamepad 2 oes Andoid


enthusiasts geat use expeience
UPGRADE New version of the brand xes weaknesses
in rst model making a delight to use with long battery life
The Phonejoy looks like a miniature controller and can be used like one, if youre
gaming on a tablet or a smart TV but it
actually splits down the middle and can be
stretched like an accordion to wrap around
your phone. The result is something like a
PlayStation Portable, and if youre a fan of
the idea, you can install a PSP emulator from
the Play Store, assuming you have a stash of
legal PSP games available, of course.
In our review of the original Phonejoy
gamepad, wed noted that we really liked the
little gamepad, and found it comfortable to
use with (and without) a phone. There were
a few issues though the shoulder buttons
were spongy, and the analog sticks were too
short to use comfortably, and worst of all,
there were some pretty serious compatibility issues.
The new version of the Phonejoy, which
weve been using for a week now addresses
all these issues, and the result is a controller
that is a delight to use with a battery that is
still going strong after 10 hours of gaming.
Compatibility is also not as much of a prob-

Specs
The small, yet chunky Phonejoy
Gamepad 2 is almost unchanged in
terms of design.
Its a little too thick to just slip into
your jeans, but small enough to put into
a jacket pocket or cargo pants.
The buttons all feel very solid, and
clicky.

lem as it was last year, though the credit for that


lies with Android.
The small, yet chunky Phonejoy Gamepad 2 is
almost unchanged in terms of design, and while
its a little too thick to just slip into your jeans,
its small enough to put into a jacket pocket or
cargo pants.
The interlinked metal section in the middle is
reassuringly solid looking, and springs back with
a snap this might change over time, but one
year down the line, the Kickstarter edition of the

original Phonejoy is still feeling pretty solid.


The LG G3 just about ts into the Phonejoy Gamepad 2, though the ideal size is a little
smaller - around 5-inches. If your phone is bigger
than six inches then it wont t in the controller
youll have to prop it up on a stand while gaming instead.
The buttons all feel very solid, and clicky. The
D-pad is still a little spongy though its better
than last year, but this is one area where there is
still room to improve.
The same is true for the analog sticks theyre
a denite improvement over the original, but
compared to the full controller style gamepads
like the Amkette Evo Gamepad Pro, this is still
pretty short, and not as satisfying. Its a necessary
compromise to allow you to slip your Phonejoy
into your pocket, but it does feel a little sti as
a result.
Connecting the Phonejoy Gamepad 2 to your
phone is really simple, and the companion app
allows you to nd games you can play easily. It
divides games into dierent genres, and also
shows the prices, so you can scoop up the best
free games if you want. The Phonejoy app also
includes a section for emulators, in case you want
to have some retro fun.
The overall experience of using the new Phonejoy Gamepad 2 is great.

GoPro unveils Hero-action camera


GoPro, the popular action camera maker, has launched its
new entry-level Hero+ action camera.
The GoPro Hero+ features Wi-Fi and Bluetooth connectivity,
but skips the LCD touchscreen on the top-end offering.
It can record videos at 1080p (full-HD resolution) at 60fps
and click images at 8-megapixel, offering an image resolution of 3264x2448 pixels.
The new action camera supports up to 64GB Class 10
microSD cards. Similar to the other GoPro action cameras, the Hero+ is also rugged,
to
durable and waterproof up
40 metres.
The company claims that the
GoPro Hero+ can automatically
adjust frame rates according to
lighting conditions.

HP announces new line of LaserJet printers


HP announced a new line of enterprise class multifunction LaserJet printers. The new printers aim to secure
the businesses print environment.
HP cited a Ponemon Institute study that showed the growing importance of printer security, stating that 56 per cent
of enterprise companies ignore printers in their endpoint
security strategy, and 64 per cent of IT managers believe
that their printers are likely to be infected with malware.
The new enterprise range of printers and MFPs incorporate
three new proprietary features. HP SureStart checks for the
integrity of the BIOS at startup, and is capable of automatically restoring a golden copy of the BIOS stored in a protected part of the system when compromised.

- GADGETS 360

Tech Demystied

How to protect computers against blackouts and power surges


Most people are familiar with blackouts;
they are when the lights go out due to loss of
electricity. This can be caused by a number of
things, such as downed power lines, scheduled shutoffs, or some other event that causes power to be cut.
Most people experience this a handful of
times a year and, depending on the situation,
blackouts arent that big of a deal. However,
they can wreak havoc on your electronics at
home or in your ofce. But why is this?
Its because a blackout is exactly the same

as pulling the power cord right out from the


back of your computer. Aside from the fact
you might lose whatever le it is you were
working on, they will also force all of your
programs and your operating system to stop
instantly.
Now that you know about blackouts, lets
look into the lesser known brownout. A
brownout is when electricity dips, surges,
or is just all around unclean. If you think of
electricity like water, it normally comes into
your house at a fairly consistent rate with the

same amount of pressure.


Now, normally brownouts arent that big of
a deal, but they can cause some of the same
issues associated with power outages, and
they can often be paired with spikes in power
also known as power surges.
Power surges are exactly what they sound
like, with excess power owing into your
house.
The worst part about power surges is that
under most circumstances you cant see
one actually happen. They are often very fast

and their effects are not immediately known.


Luckily, though, most modern electronics
are designed with some resilience to power
surges.
Lets talk about ways we can mitigate the
effects or at least protect your electronics
from them.
First of all, buy a surge protector. I could go
into the nitty gritty of what to look for, but
buy a good brand , and the higher number
of Joules, the better. Generally, a good surge
protector will be about $30. Surge protectors

will help protect your electronics, are pretty


cheap, and give you a ton more outlets to
use! So buy one.
So what about brown outs and black outs?
Well the answer is a UPS or (Uninterrupted
Power Source). Basically, this is just a battery
for your electronics. The idea of a UPS though
is not to power your electronics for a long
time. Rather, its to power your electronics
for just long enough so that you can do a safe
power down.
- TECH TALK

Thursday October 1, 2015 | BUSINESS DAILY

19

MONEY & MARKETS


NEWS I REVIEWS I ANALYSIS

Agency gives ms 30 days to emit unclaimed assets


ULTIMATUM Authority tells companies to comply

or risk 25pc penalty of asset value in their possession


tivity such as withdrawal or request for
a statement. Other unclaimed assets
Companies holding unclaimed assets include bankers cheques not cashed for
have been given a month to submit two years, contents in safe deposit boxthem to the government or be penal- es unclaimed for more than two years,
court awards exceeding two years, and
ised.
The Unclaimed Financial Assets utility deposits held for over two years
Authority (UFAA) said yesterday it since termination of services.
Matured life insurance policies unwould impose the penalties this year
after giving a four-year grace period claimed for more than two years and
shares, whose dividends have not been
for companies to comply.
The Act came to being in October collected for more than three years, are
2011 so holders of unclaimed assets have also in the list.
no excuse not to surrender
The authority has collect we will impose the pened Sh3.4 billion and expects
alties said chief executive
to double the amount by end
Holdes of
Kellen Kariuki.
of the year should there be
unclaimed
Companies are recompliance with this years
quired to submit unassets have no deadline. Banks have submitted the bulk of the assets at 62
claimed assets in their
excuse not to
per cent of the total.
books as at the end of
suende
Ms Kariuki said the auJune each year to the
authority by the rst day KELLEN KARIUKI, UFAA BOSS thority had expected higher
collections from insurance
of November of the same
year. Failure to forward the assets at- companies, pension schemes, saving
tracts a penalty equal to 25 per cent of societies, saccos and government instithe value of the assets that should have tutions but there was low compliance
been submitted.
levels in those sectors.
The law gives the authority powers
The authority said institutions
which were not sure of the asset value to audit any premise to ensure complithey were holding would be allowed to ance. It also compels the institutions to
submit what they were certain of be- provide information to the authority.
fore the deadline and seek a two-month
Organisations that have complied
extension to surrender any remaining include KCB Group which has remitamount.
ted the highest sum of Sh700 million,
Some of the assets that are consid- Standard Chartered with Sh500 milered unclaimed include cash in bank lion, the defunct Kenya National Asaccounts for a period exceeding ve surance Corporation Sh340 million and
years without any owner-initiated ac- Barclays Bank at Sh200 million.
BY GEORGE NGIGI

Unclaimed Financial Assets Authority chief executive Kellen Kariuki speaks at the Stanley Hotel in Nairobi yesterday on public
awareness campaign to run in October. SALATON NJAU

Regulations on the unclaimed nancial assets are yet to be passed by Parliament. The authority, however, maintained companies have to comply with
the Act because the rules were to give
guidelines on how the authority was to
pay out collected funds and not how the
holders were to submit the assets.
The Kenya Bankers Association
(KBA) supported the UFAAs position urging its members to observe
the deadline.
The regulations are yet to be published and various institutions may be

waiting to ensure consistency in compliance, however, this should not deter reporting and remitting unclaimed
funds, particularly now that the authority is operational, said chief executive
Habil Olaka.
Upon receiving the assets, the authoritys rst mandate is to search for
the legal owners of the assets or their
heirs in cases where the owners are
deceased.
The authority has not paid out any
of the beneciaries who have laid claim
of assets forwarded to them due to ab-

sence of the regulations. The beneciary


have, however, been given an undertaking to be paid once the guidelines are
approved.
Claims from the fund, so far, have
been low and are estimated at Sh32
million.
The authority is pushing to have
unclaimed assets held by companies
disclosed in nancial reports to ease
tracking. Public listed companies have
been disclosing unclaimed dividends
but other assets remain condential.
gngigi@ke.nationmedia.com

UK popety m seeks Sh5bn ahead of Naiobi listing


BY JOHN GACHIRI

UK-based St Pauls Property Trust is


seeking to raise Sh5 billion from the
local market ahead of its listing on the
Nairobi Securities Exchange (NSE).
The company is planning to list on
the NSEs Growth Enterprise Market
Segment (GEMS) by the end of the
year.
We are planning to raise Sh4 billion
through listing on the NSE but have a
green shoe option of Sh1 billion, said
Richard Britten-Long, a director at St
Pauls.
This means the rm will take up
to Sh5 billion if there is an oversubscription.
The company said it could not give
ner details such as the listing price or

how many shares will be listed pending


regulatory approval.
The rms strategy is to buy highgrade oces that can house government departments, which normally
tend to sign long term leases and do
not default on payments, ensuring stable and reliable rental income.
Funds raised from the Kenyan market will be used to buy up to four rental
properties outside London and whose
tenant is the UK government or town
councils.
St Pauls Trust will then borrow using
the additional properties as collateral
and use the debt to buy properties that
have the ability to be shaped up and
then sold or rented at a premium.
The NSE listing is meant to tap into
the local capital market where there is

St Pauls Property Trust director Richard


Britten-Long. SALATON NJAU
demand from fund and pension managers who want to diversify their portfolios in light of the bourses bear run,
which has touched a three-year low.
The company has chosen Kenya

for its primary listing due to the demand for, and relatively low supply
of, high quality and risk-averse listed
commercial property vehicles. Several
successful listed property vehicles are
already listed on the Johannesburg
Stock Exchange, said St Pauls Trust
in a statement,
Analysts say that they expect the
bourse to remain suppressed due to
the numerous prot warnings that
have been issued in recent months.
We remain neutral with a negative
bias on equities given the signicantly
lower earnings growth prospects for
this year. The market is now purely a
stock pickers market, with few pockets
of value, said a market report by Cytonn
Investments.
Pension and fund managers are

also showing interest in returns that


are denominated in another currency
in light of the weakening shilling, which
has touched Sh105 to the dollar, a 14 per
cent depreciation since the beginning
of the year.
Kenswick will manage St Pauls
property portfolio while Burbidge
Capital are the nominated advisors.
Coulson Harney will handle the legal
work, Deloitte are the reporting accountants and Levanter Africa are in
charge of communications.
St Pauls will also join its compatriot
Atlas Development and Support Services which cross-listed on the NSE in
December 2014.
East African Data Handlers and Empire Microsystems are other rms that
plan to list on the NSEs GEMS.

20

BUSINESS DAILY | Thursday October 1, 2015

MONEY & MARKETS

Safaicom Sacco plans Sh1bn shae sale


to membes fo eal estate investments
DIVERSIFICATION Society to build a 15-storey

ofce complex in Nairobis Westlands area


Mr Ochiri said the sacco is awaiting
approval of the design of the complex
Safaricom Sacco is seeking to raise Sh1
from the Nairobi County government.
billion through the sale of shares to
He said the organisation had already
received approval from the
members to raise funds for
Sacco Societies Regulatory
real estate investments and
Authority (SASRA) and the
grow its revenue base.
The saccos management Pat of the funds Capital Markets Authority (CMA) to mobilise new
said yesterday it would use
will go into
funds from members.
the money raised to, among
The building will have a
other things, construct a constuction of
15-storey oce complex in
the Safaicom swimming pool at the top,
green energy and will be
Nairobis Westlands area,
Sacco oce
made of about 50 to 60 per
opposite the Safaricom
complex
cent glass . Only members
headquarters.
are eligible to buy the shares.
The sale of the shares has
GEORGE OCHIRI
begun and is set to close on SACCOS CHIEF EXECUTIVE Recently, the sacco expanded its membership base to
September 30, 2016.
Safaricom Sacco is diverinclude employees of comsifying its portfolio to grow returns for
panies aliated to Safaricom.
members. Part of the funds mobilised
The funds we raise will also go
will go into construction of the Safatowards increasing the threshold for
ricom Sacco oce complex, said the
members loans to an upper limit of
Saccos chief executive George Ochiri
Sh10 million, said Mr Ochiri.
in a statement.
He said the sacco planned to introBY SIMON CIURI

Safaricom Limited shareholders follow proceedings during last years Annual General
Meeting in Nairobi. Safaricom Sacco membership base include s all employees of
companies afliated to the telcom rm. FILE
duce collateral-backed lending. The
company further said that it intended
to introduce new products such as asset nance and mortgages. In the event
we do not achieve full subscription, the
board still has the option to review nancing options from the nancial
market, Mr Ochiri said.
The sacco was founded in 2001
targeting Safaricom employees who
may want to borrow money from the
host institution for investment. It currently has 8,000 members and an asset
base of Sh2.8 billion and is seeking to

implement a strategic plan targeting


to grow its business fourfold by 2018.
Some 6,600 of the members have already taken loans with the sacco.
Of late, various saccos have been
diversifying into other sectors to boost
their revenue instead of relying on
their core business of taking deposits
and lending to their members.
One of the major attractions of the
saccos has been relatively lower lending
rates compared to other nancial institutions such as commercial banks.
sciuri@ke.nationmedia.com

Shilling ms
to 4-week high,
stocks down
The shilling strengthened to a
four-week high yesterday due to
tight liquidity and commercial
banks ooading their long dollar positions, while stocks were
down for a fourth straight session.
At close of trade at 1330
GMT, commercial banks quoted
the shilling at 104.55/75 to the
dollar, compared with Tuesdays
close of 105.25/35.
Its due to people unwinding their long (dollar) positions,
and also the overnight rates are
quite punitive, a senior trader
at one commercial bank said.

Lending rates
Tight shilling liquidity in the
money markets has driven overnight lending rates to shoot up
to a high of 28 percent from 13
per cent earlier this month.
A second trader said the
central banks activity in mopping up liquidity had contributed to those high rates. They
have made it very expensive to
run any long foreign currency
position, he said.
- REUTERS

CMA geas up fo launch


of deivatives exchange
to address volatility in interest rates, currency and, in the
longer term, volatility in prices of commodities, said Mr
Muthaura.
The Nairobi Securities Exchange (NSE) also plans to put
up a derivatives market and
has in the past run market
simulation with brokers.

BY JOHN GACHIRI

The EastAfrican Newspaper will


on 17th October 2015 publish
a special report celebrating
nancial institutions that
have excelled in championing
nancial inclusion. Issues to be
covered in the report include:
Regulation and nancial
inclusion
Agent banking and its impact
Mobile phones as
invaluable nancial tools
Bringing down the barriers
to nancial inclusion
Advancing womens nancial
inclusion
Youth nancial inclusion
The global push for universal
access to nance by 2020
To advertise call:
Dorothy Wakoli 254-724 158 370
Email: dwakoli@ke.nationmedia.com

The Capital Markets Authority


(CMA) is stepping up preparations for the introduction of an
exchange for derivatives, which
are used for hedging risk.
The CMA has partnered
with the Dubai Financial
Services Authority to train
local players on how the proposed exchange will work.
The derivatives market is
one of the key targets for the
CMA and so far the regulators
has set out the rules for market players.
The establishment of a
vibrant derivatives markets
in Kenya is one of the key
projects under the Capital
Market Master Plan whose
delivery is key to deepening
the capital market in Kenya,
said CMA acting chief executive Paul Muthaura.
He added that the regulators has blended international
best practices and local realities in coming up with regulations for the derivatives
market.
Kenyas regulatory frame-

Services hub

Mr Paul Muthaura, the acting


CMA chief executive. FILE
work on the planned exchange,
he said, has been aligned to the
International Organisation of
Securities Commissions principles and takes into account the
countrys status as a developing economy.
The establishment
of
a derivatives market is expected to attract both domestic
and foreign participation and
to benet all sectors of the
economy through, among
others, providing products

We are set to launch our derivatives market, Real Estate Investment Trusts and Exchange
Traded Funds, all with an aim
of broadening our product
oering and deepening our
capital market while further
strengthening our position as
the nancial services hub for
East and Central Africa, said
NSE chief executive Georey
Odundo in August.
Derivatives are so called
because they are derived
from other assets called
underlying assets such as
equities, bonds or mortgages.
They are intended to mitigate
against risks an investor may
incur when prices of the assets
change.

Thursday October 1, 2015 | BUSINESS DAILY

21

MONEY & MARKETS GLOBAL

Cental banks ole


unde scutiny on
loss of autonomy

WTO names
top isks to
tade gowth

INDEPENDENCE Inuence of Fed on monetary

policy erodes regulators domestic mandates


Chief among the questions is whether
sures and the below-target U. ination
the worlds most inuential central
rate, then surely every future push to
bank, along with many of its peers, is
raise rates will simply strengthen the
trapped at near zero interest rates as
currency again and re-ignite the same
chain reaction.
the economic cycle crests and ination atlines, due to a rapid cooling of
You cant run a independent, doChina and other emerging economies
mestically-focused monetary policy
and a commodity price slump.
in this environment, said Salman
The uncomfortable
Ahmed, chief strategist at
prospect of heading into
asset managers Lombard
another economic slowOdier, adding that a major
The elative
down with no interest
complication is the huge
paucity of the uncertainty internally at
rate ammunition to ght
the downturn is at the root monetay policy the Fed about just how
of much that investment
toolkit inceases the worlds second biggest
economy, China, is actually
angst.
the fagility of performing.
The relative paucity
What has happened is
of the monetary policy
the expansion
toolkit increases the fragilthat central banks have lost
WILLEM BUITER, CHIEF
ity of the expansion, with
control to calibrate moneECONOMIST, CITI
risks that an adverse shock
tary policy to only domestic
could lead businesses and consumers
economic data.
to retrench and thereby transform a
The Fed may be in the hot seat,
mid-cycle slowdown into something
but the Bank of England has a simisignicantly worse, wrote Citi chief
lar dilemma.
economist Willem Buiter.
The Bank of Japan and European
Yet by subsequently insisting a rate
Central Bank dier only in that theres
rise was still on the cards this year, the
no domestic pressure yet to tighten
Fed simultaneously removed any lowpolicy. But their attempts to avoid
rates balm and confused many as to
deep deation and reach explicit inits reaction function.
ation targets seem to be similarly
Just which of the global pressures
sideswiped by global rather than dothat stayed its hand only two weeks
mestic developments. And thats not
ago weakening China, emerging
changing any time soon.
markets and commodity prices will
In a world thats wound down very
disappear again by year end?
little of its overall indebtedness some
seven years after the credit crash was
And if the rise of the dollar is at
supposed to launch a wave of delevleast partly behind both those pres-

Britains Labour Party Leader Jeremy Corbyn makes his keynote address on the third
day of the annual Labour Party Conference in Brighton, England on Tuesday. AFP
eraging, relatively slow growth and
over-reliance on cheap credit to cope
with that funk has zombied global
economies for years to come, Ahmed
added.
And in such a low growth world,
political pressure to bring central
banks into a more centrally-directed
policy framework will only increase.
The debate in Britain has shifted
squarely in that direction already:
the new left-wing leader of Britains
main opposition Labour Party, Jeremy
Corbyn, and his nance spokesman,
John McDonnell, are both long-standing critics of Bank of England independence.
McDonnell, who this week assembled a panel of advisers including Nobel laureate Joseph Stiglitz and French
economist Thomas Piketty, advocates
a Peoples QE where the BoE would
be instructed to buy bonds sold by a
new national development bank for
infrastructure projects.
And one of those advisers, academic economist and former BoE
policymaker David Blanchower,

said on Tuesday Labour was right to


debate the banks mandate beyond
pure ination targeting.
It should include new objectives
for the monetary policy committee
such as growth, employment and perhaps even earnings, he wrote, adding
the Feds model of seeking employment, stable prices and moderate
long-term borrowing rates would
be better.
But given the Fed is itself in a peculiar bind, that model may not impress
some central bank critics.
And the concern among some
economists and investors is that
greater political control may leave
the bank compromised in future to
more extreme, short-term whims of
parties in power.
British economist George Magnus
said there may be a case for better coordination between government and
central bank and some lines between
the two had indeed blurred. But he
warned of the danger of crossing the
Rubicon on central bank independence. - REUTERS

World trade will grow by 2.8 per cent


this year and could be pegged back
further by a US interest rate rise, Chinas economic slowdown or Europes
refugee crisis, the World Trade Organization said yesterday.
The forecast, revised down from
a 3.3 per cent forecast made in April,
means 2015 will be the fourth year in
a row with trade growth of less than
three per cent, half the annual average in 1990-2008 before the nancial
crisis hit.
The WTOs forecast implies growth
will quicken this year, from 2.5 per cent
growth in 2014. But its expectations
have repeatedly proved overly optimistic as hopes of global economic
recovery have receded.
There were still big potential risks
to its latest numbers.
These include a sharper-thanexpected slowdown in emerging and
developing economies, the possibility
of destabilising nancial ows from an
eventual interest rate rise by the US
Federal Reserve, and unanticipated
costs associated with the migration
crisis in Europe, the WTO said in a
statement. The Chinese slowdown already caused the WTO to cut its 2015
forecast for growth in Asian imports to
2.6 per cent, down from a 5.1 per cent
projection in April, and Asian exports
to 3.1 percent from the previous 5.0
percent forecast.
Chinas falling demand was one major reason why global trade shrank in
the rst two quarters of 2015, contracting from the previous quarter by an
average of 0.7 per cent. Falling demand
in Brazil and oil and commodity prices
also contributed. However, year-onyear global growth for the year to date
is still positive, at 2.3 percent from the
same period of 2014.
-REUTERS

Asia shaes on tack fo wost quately loss in fou yeas


Asian stock markets rallied yesterday
after sliding to 3-year lows, but concerns
lingered over slumping commodities
prices and Chinas cooling economy.
European markets were set to follow Asia higher, with nancial spreadbetters expecting Britains FTSE 100,
Germanys DAX and Frances CAC 40 to
open as much as 1.2 percent higher.
US stock futures rose 0.8 per cent,
suggesting a stronger opening on Wall
Street later in the session.
MSCIs broadest index of Asia-Pacic
shares outside Japan rose 1.6 per cent
after plumbing its lowest since June
2012 on Tuesday on fears that Chinas
slowdown would curb its huge appetite
for commodities and resources.
The index was on track for a 2.9 per-

cent decline in September, extending


losses for the quarter to 17.7 per cent,
its worst quarterly performance in
four years.
Japans Nikkei brushed aside an
unexpected drop in the countrys industrial output to close up 2.7 per cent,
paring losses for the quarter to 14.1 percent, its deepest since 2010.
The current environment represents a winding back of the overly
bullish expectations of both commodity
demand and Chinese growth to a more
balanced expectation of progressive,
not exponential, growth, said Angus
Gluskie, managing director of White
Funds Management in Sydney.
Demand for the safe-haven yen
eased as global stocks steadied and

An investor at the Jakarta Stock


Exchange. AFP
some semblance of calm returned to
markets, but traders said month-end
and quarter-end ows meant that volatility is likely to remain a feature.
The dollar index against a basket of

major currencies edged up 0.2 per cent.


The dollar fetched 119.96 yen, having
turned around from a low of 119.24. The
euro slipped 0.1 per cent to $1.1231.
Commodity currencies languished,
with the Canadian dollar slipping 0.1
per cent to an 11-year low of C$1.3407.
Traders said US non farm payrolls
data on Friday could help strengthen,
or weaken, the case for the Federal Reserve raising US. interest rates before
the end of the year, thus setting the tone
for the dollar.
The market will also be keeping an
eye on Fed Chair Janet Yellen, who is
due to give welcome remarks at a conference later on Wednesday.
And commodities and global nancial markets face a major test of nerves

on Thursday, when the closely-watched


Chinese Purchasing Managers Index
(PMI) is likely to show the countrys
factory sector shrank for the second
month in a row in September.
Chinas CSI300 climbed 1.2 per cent,
helping reduce losses for the quarter
to 28 percent. The Hang Sengs 1.7 per
cent gain also helped shrink losses to
20 percent for the quarter.
South Koreas Kospi reversed earlier losses to end the day 1 percent
higher, paring losses to 5.4 percent for
the quarter.
Australian shares closed up 2.1
percent, for a quarterly decline of 8
percent.
-REUTERS

22

BUSINESS DAILY | Thursday October 1, 2015

MARKET DATA
Agro Commodities Market
Early Morning wholesale commodity prices Date 30-09-2015
COMMODITY
Unit
Kg
Nairobi
Mombasa
CEREAL
Dry Maize
Bag
90
2900
2600
Green Maize
Ext Bag
115
2000
5600
Finger Millet
Bag
90
7200
7650
Sorghum
Bag
90
3400
3600
Wheat
Bag
90
3300
LEGUMES
Beans Canadian
Bag
90
5800
Beans Rosecoco
Bag
90
5800
6000
Beans Mwitemania
Bag
90
5600
5300
Mwezi Moja
Bag
90
5400
Dolichos (Njahi)
Bag
90
11000
10800
Green Gram
Bag
90
9800
9450
Cowpeas
Bag
90
7200
5400
Fresh Peas
Bag
51
2500
1750
Groundnuts
Bag
110
13500
14850
ROOTS & TUBERS
Red Irish Potatoes
Bag
50
2600
2500
White Irish Potatoes
Bag
50
2800
3000
Cassava Fresh
Bag
99
2200
1800
Sweet Potatoes
Bag
98
3400
2900
VEGETABLES
Cabbages
Ext Bag
126
1400
2000
Cooking Bananas
Med Bunch 22
520
750
Ripe Bananas
Med Bunch 14
600
500
Carrots
Ext Bag
138
1600
2300
Tomatoes
Lg Box
64
4800
5000
Onions Dry
net
13
800
700
Spring Onions
Bag
142
2600
4800
Chillies
Bag
38
1900
1700
Cucumber
Bag
50
2000
2000
Capsicums
Bag
50
2000
2500
Brinjals
Bag
44
1980
1800
Cauliower
crate
39
1950
1950
Lettuce
Bag
51
1700
2000
FRUIT
Passion Fruits
Bag
57
4800
5500
Oranges
Bag
93
2700
2600
Lemons
Bag
95
2800
2400
Mangoes Local
Bag
126
2200
1800
Mangoes Ngowe
Sm Basket 25
1200
2000
Limes
net
13
910
1500
Pineapples
Dozen
13
780
960
Pawpaw
Lg Box
54
2400
1000
Avocado
Bag
90
2300
3000
Kales
Bag
50
1200
1500
OTHERS
Eggs
Tray
300
360

Commodities
Kisumu

Nakuru

Eldoret

Embu

Isiolo

Taveta

3000
1600
6200
3200

2300
1600
5800
3150

2500
720
6300
4950
2800

2200
4025
6000
3600
4800

3500
4500
9000
4500
4500

3150

7200
6500

5000
5000
4500

5400
5400

5400
4500
4950

9200
7200
2500
10000

11700
9400
7200
3500
13200

9450
8550
4050
1275
10800

7200
6300
7200
13500

3500
3500
2000
2500

4500
4500
3000
3000

1200
1100

1000
300
300
3000
5000
1170
1400
1400

350
750
1200
4000
750
1500
2000

1800
1200
1000
720
1400
4600
715
800

2200
1300

1700
1700
900

1750

3000
3000
1700
2800
1800

5000
3200
2700
3500
500

2280
4200

5800
5800
5600
5600
10000
9500
5000
3570
15000
2700
2700
1900
2200
1890
440
450
3500
1600
750
4260
4750
2000

Ottawa

14000
2500

2500

1800
2400

3000
3500

1400
850

2500
300

6900
4500
1040

2000
500

2200
3900
5610
8885
5200

Global Commodity Prices

7000
5000

Effective date: 30th September 2015

2000
500

AGRO COMMODITIES

650
1500
1800
1200

480
3000
2000
1100

1040
2160
1500
1300

1350
1890
3500
500

700
900
1700
1200

2000
1000

280

300

360

280

330

300

MSCI Emerging Markets Sector Indices


NET.CHNG
-12.25
-3.31
4.75
-0.25
9.14
-10.14
-5.70
-0.12
-33.06
-15.82
-3.51
3.18
11.22
-5.22
-3.57
-1.57
1.14
-7.22
-8.15
-16.04
3.91
-2.00
-5.33
-26.62
17.35
-20.34
4.30
10.96
-2.98
4.02
-3.08
-38.71
0.00
3.49
2.81
-13.91
11.35
-2.50
1.72
4.93
-10.03
1.18
51.18
-5.78
4.44
-35.06
5.66
10.45
0.06
-0.13
-10.72
25.97
0.00
-0.08

PCT.CHNG
-2.49%
-0.41%
0.65%
-0.31%
1.27%
-0.84%
-0.59%
-0.02%
-4.64%
-2.59%
-0.95%
0.33%
0.41%
-0.57%
-0.39%
-0.17%
0.16%
-0.85%
-0.99%
-1.11%
1.29%
-0.25%
-0.55%
-2.89%
2.36%
-2.01%
1.18%
1.19%
-0.31%
0.74%
-0.71%
-4.55%
0.00%
1.33%
0.46%
-1.34%
0.98%
-0.18%
0.16%
0.78%
-1.59%
0.13%
1.31%
-0.44%
0.79%
-2.15%
0.89%
0.94%
0.01%
-0.01%
-1.05%
1.52%
0.00%
-0.01%

OPEN
478.81
803.60
731.46
81.53
726.11
1,195.20
964.29
686.98
678.62
594.89
367.11
957.77
2,778.49
917.40
916.01
900.92
703.25
840.42
814.52
1,426.34
306.69
783.96
967.12
894.62
752.73
991.54
367.34
932.81
953.29
545.14
429.33
811.79
787.12
266.29
616.64
1,024.05
1,167.26
1,349.35
1,102.52
634.70
620.07
933.16
3,961.49
1,320.09
564.73
1,593.50
641.25
1,119.50
809.99
1,100.08
1,013.04
1,739.24
1,209.22
1,021.64

A dairy farmer protests


the Trans-Pacic
Partnership (TTP) in
Ottawa, Ontario. A
cow and hundreds of
dairy farmers driving
tractors blocked road
access to Canadas
Parliament onTuesday
to protest agricultural
concessions in trade
talks with other Pacic
Rim countries. AFP

7200

SOURCE: STATE DEPARTMENT OF AGRICULTURE. EMAIL MARKETINFO@KILIMO.GO.KE

NAME
LAST
478.81
BRIC IC
BELGIUM IC DAILY 803.60
731.46
BELGIUM
81.53
BAHRAIN IC
726.11
CANADA IC
SWITZERLAND IC 1,195.20
964.29
SWIZ
686.98
CHILE IC
678.62
CHINA IC
594.89
COLOMBIA IC
367.11
CZECH REPUBL
957.77
GERMANY IC
2,778.49
DENMARK IC
917.40
EASEA IC
EASEA LARGE CAP 916.01
900.92
EU IC
703.25
EM EMEA IC
840.42
EM EM ISLAMIC
EMERGING MARKET 814.52
1,426.34
SPAIN IC
306.69
FINLAND IC
783.96
FRANCE IC
UNITED KINGDOM 967.12
GOLDEN DRAGON IC 894.62
752.73
GREECE IC
991.54
HONG KONG IC
367.34
HUNGARY IC
932.81
INDONESIA IC
953.29
INDIA IC
545.14
ITALY IC
JORDAN EGYPT MOR 429.33
811.79
JAPAN IC
787.12
KOREA IC
266.29
KUWAIT IC
EM LATIN AMERICA 616.64
1,024.05
ASIA IC
1,167.26
MEXICO IC
1,349.35
MALAYSIA IC
NETHERLANDS IC 1,102.52
634.70
NORWAY IC
620.07
NEW ZEALAND IC
933.16
OMAN IC
3,961.49
PHILIPPINES
1,320.09
PAKISTAN IC
564.73
POLAND IC
1,593.50
QATAR IC
641.25
RUSSIA IC
1,119.50
SWEDEN IC
809.99
SINGAPORE IC
SOUTH EAST ASIA 1,100.08
1,013.04
THAILAND IC
1,739.24
TURKEY IC
1,209.22
TAIWAN IC
1,021.64
SOUTH AFRICA

Fames potest

HIGH
478.81
803.60
731.46
81.53
726.11
1,195.20
964.29
686.98
678.62
594.89
367.11
957.77
2,778.49
917.40
916.01
900.92
703.25
840.42
814.52
1,426.34
306.69
783.96
967.12
894.62
752.73
991.54
367.34
932.81
953.29
545.14
429.33
811.79
787.12
266.29
616.64
1,024.05
1,167.26
1,349.35
1,102.52
634.70
620.07
933.16
3,961.49
1,320.09
564.73
1,593.50
641.25
1,119.50
809.99
1,100.08
1,013.04
1,739.24
1,209.22
1,021.64

LOW
478.81
803.60
731.46
81.53
726.11
1,195.20
964.29
686.98
678.62
594.89
367.11
957.77
2,778.49
917.40
916.01
900.92
703.25
840.42
814.52
1,426.34
306.69
783.96
967.12
894.62
752.73
991.54
367.34
932.81
953.29
545.14
429.33
811.79
787.12
266.29
616.64
1,024.05
1,167.26
1,349.35
1,102.52
634.70
620.07
933.16
3,961.49
1,320.09
564.73
1,593.50
641.25
1,119.50
809.99
1,100.08
1,013.04
1,739.24
1,209.22
1,021.64

CLOSE
491.06
806.90
726.71
81.78
716.98
1,205.34
969.99
687.10
711.67
610.71
370.62
954.59
2,767.27
922.62
919.58
902.49
702.11
847.63
822.67
1,442.39
302.78
785.96
972.45
921.24
735.38
1,011.88
363.05
921.84
956.26
541.12
432.41
850.49
787.12
262.79
613.83
1,037.96
1,155.91
1,351.85
1,100.80
629.77
630.10
931.98
3,910.31
1,325.88
560.29
1,628.57
635.59
1,109.06
809.93
1,100.21
1,023.76
1,713.27
1,209.22
1,021.72

CURRENCY LAST

NET CHNG

9.02%

BRITISH AMERICAN

SH

12.12%

12.88%

UAP

SH

12.10%

12.86%

GENCAP HELA

SH

14.50%

15.30%

16.82%

18.31%

13.95%

14.87%

-0.25

MADISSON

SH

13.53%

14.49%

2.00

CIC

SH

15.40%

16.36%

CBA

SH

12.21%

12.87%

STANLIB

SH

12.22%

12.93%

ICEA

SH

14.14%

15.18%

EQUITY MONEY MARKET FUND

SH

14.37%

15.36%

NABO AFRICA

96.25

COFFEE

USD

147.50

COCOA

USD

3184.00

JPY

153.00

0.00

FROZEN OJ CON1 USC

106.55

-0.25
0.67

GRAINS

FIXED INCOME FUND

CORN

USC

389.50

0.50

MAIZE EUR

EUR

163.00

0.50

WHEAT

USC

507.00

3.25

ROUGH RICE

USD

13.25

-0.08

OILSEEDS
SOY BEANS

USC

886.25

2.00

SOY BEAN OIL

USC

27.20

-0.26

CANOLA

CAD

477.50

0.60

PALM OIL

MYR

2264.00

-8.00

METALS & MINING


SYMBOL

CURRENCY

LAST

EFFECTIVE ANNUAL RATE

SH

9.20

60.31

8.67%

SH

370.80

USC

DAILY YIELD

SH

PAN AFRICA PESA+

USD

COTTON NO2

CURRENCY

OLD MUTUAL

AMANA

SUGAR NO5

RUBBER

Effective date: 29th September 2015


MONEY MARKET FUND

SOFTS
COMMODITY

Unit Trusts

NET CHG

SH

96.25

CURRENCY

BUY

SELL

SH

112.25

116.32

GENCAP HAZINA
CIC

SH

9.68

9.92

NABO AFRICA

SH

92.06

92.06
159.26

BALANCED FUND
OLD MUTUAL / TOBOA

SH

149.56

BRITISH AMERICAN

SH

181.82

187.14

GENCAP ENEZA

SH

114.80

118.96

UAP

SH

10.88

11.42

AMANA

SH

126.57

126.57

MADISSON

SH

58.65

61.89

PAN AFRICA CHAMA+

SH

10.63

10.96
125.78

STANLIB

SH

125.78

EQUITY BALANCED FUND FUND

SH

98.31

96.38

NABO AFRICA

SH

100.82

100.82

ICEA

SH

127.55

134.26

CIC

SH

12.74

13.34

EQUITIES FUND

SH

100 OZ GOLD

USD

1,122.80

-4.30

OLD MUTUAL

SH

362.20

388.08

SILVER

JPY

55.00

-2.00

OLD MUTUAL EAST AFRICA FUND

SH

145.23

153.70

HG COPPER

USC

2.26

0.01

BRITISH AMERICAN

SH

190.35

196.4

CBA

SH

150.80

150.80

PLATINUM

JPY

3,594

36.00

AMANA

SH

123.16

123.16

ALUMINIUM

CNY

11,650

5.00

GENCAP HISA

SH

122.17

126.60

PALLADIUM

JPY

2,545

56.00

MADISSON

SH

45.57

48.37

UAP

SH

9.54

10.02

STANLIB

SH

174.33

174.33

ICEA

SH

134.18

141.24

NABO AFRICA

SH

95.23

95.23

CIC

SH

12.89

13.57

OIL& GAS
SYMBOL

CURRENCY

LAST

NET CHG

LIGHT CRUDE

USD

45.04

-0.19

NO 2 HT OIL

USD

1.49

0.00

BOND FUND
OLD MUTUAL BOND FUND

SH

96.07

98.36

BRITISH AMERICAN

SH

135.93

138.70

BRENT CRUDE

USD

48.04

-0.19

UAP

SH

11.34

11.34

GAS OIL

USD

461.25

-3.75

ICEA

SH

91.07

91.99

NATURAL GAS

USD

2.60

0.01

PAN AFRICA PATA+

SH

9.70

10.00

STANLIB FUND B1

SH

99.00

99.00

KEROSINE

JPY

48,440.00

-30.00

STANLIB FUND A

SH

98.15

98.15

SH

110.24

116.04

SHARIAH COMPLIANT
SOURCE: THOMSON REUTERS

GENCAP IMAN

Thursday October 1, 2015 | BUSINESS DAILY

23

MARKET DATA

Banke sees
global nancial
cises theat in
climate change
Climate change threatens global
nancial crises and long-term declines in wealth unless world leaders urgently seal a deal to limit it, the
head of the Bank of England said on
Tuesday.
The challenges currently posed
by climate change pale in signicance
compared with what might come,
Mark Carney told business leaders in
a speech in London. The far-sighted
amongst you are anticipating broader
global impacts on property, migration
and political stability, as well as food
and water security.
Speaking as world leaders scramble to lay the groundwork for a new
United Nations agreement to limit
climate change at talks in Paris starting in November, Carney warned that
the window of opportunity is nite
and shrinking. His comments come
the day after French President Francois Hollande warned that if no deal
was reached in Paris, it will be too late
for the world, in an address to the UN
General Assembly in New York.

Rising temperatures
Scientists have underlined the urgency of preventing temperatures
rising more than two degrees Celsius
(3.6 Fahrenheit) from pre-industrial
times, although analysts warn the
world is heating far faster.
Several nations and private sector
bodies have promised to cut greenhouse gas emissions, blamed for the
severe weather and rising temperatures, but there remain deep international divisions over a long-awaited
deal. A Canadian economist who has
been the governor of the central bank
since 2013, Carney said that scientic
evidence indicated climate change
will threaten nancial resilience and
longer-term prosperity.
He said the number of weatherrelated loss events for insurers had
tripled since the 1980s, while ination-adjusted losses for the sector
had increased ve-fold to $50 billion a
year. The catastrophic impacts of climate change including oods and
storms and nancial costs of shifting
to a low-carbon economy will only
be felt over a longer period than the
three to 10 year horizon used in the
nancial industry, he warned.
In other words, once climate
change becomes a dening issue for
nancial stability, it may already be
too late, Carney said.
The Earth is currently on track for
temperatures to rise 3.5 degrees, according to Climate Interactive.
A 3.5 degree rise would mean a
world we cannot adapt to, according to the bodys co-director Andrew
Jones.
-AFP

WINNERS AND LOSERS - YTD


BAT

OLYMPIA CAPITAL
Kenya

4.35
-1.14%

Jan 15

Sept 15
-1.04
-4.18
0.00%

Earnings per share


Price to earnings ratio (p/e)
Dividend Yield

KCB
Kenya

Jan 15

47.00
-1.57%

Sept 15
5.63
8.35
4.26%

Earnings per share


Price to earnings ratio (p/e)
Dividend Yield

TOTAL

Kenya

817.00
3.68%

Jan 15

Sept 15

Jan 15

42.55
19.20
5.20%

Earnings per share


Price to earnings ratio (p/e)
Dividend Yield

KenGen

Jan 15

Centum
Kenya

Sept 15
1.29
6.47
4.79%

Earnings per share


Price to earnings ratio (p/e)
Dividend Yield

19.15
2.13%

Jan 15
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield

Kenya

Sept 15
2.26
8.47
3.66%

Earnings per share


Price to earnings ratio (p/e)
Dividend Yield

8.35
0.60%

Kenya

DTB

Kenya

52.00
0.00%

Jan 15
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield

Barclays
Kenya

Sept 15
10.44
4.98
0.00%

TPS EA.
200.00
0.00%

Jan 15
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield

Sept 15
21.92
9.12
1.20%

13.15
0.77%

Sept 15
1.54
8.54
7.60%

Kenya

29.50
-2.48%

Jan 15

Sept 15
1.35
21.85
4.58%

Earnings per share


Price to earnings ratio (p/e)
Dividend Yield

Eveready
Kenya

3.05
0.00%

Jan 15

Sept 15

Earnings per share


Price to earnings ratio (p/e)
Dividend Yield

-0.85
-3.59
0.00%

Tracking the markets: Benchmark Index (Latest Data)


Africa
JSE All Share Index
South Africa

Aug Sept
15 15

1,924.00
1948.00
-1.64%
0.00

Jan 15Jan 15

NGSE All share

Tanzania

Uganda

49,976.27
50767.02
1.20%
-54.16

Jan 15Jan 15

DSE All Share

USE All Share

Aug 15
Sept 15

2,531.08
2576.77
0.69%
0.00

Jan 15

RSE All Share

Nigeria

Aug 15
15
Sept

Rwanda

135.46
142.34
0.00%
0.00

30,574.01
29909.44
-0.81%
-796.18

Jan 15Jan 15

Aug 15
Sept 15

JanJan
15 15

Aug
1515
Sept

World
Xetra Dax

DJ Industrial

9,688.73
11027.34
2.52%
0.38%

17477.40
16,049.13
0.40%
0.30%

Jan 15Jan 15

Aug Sept
15 15

Jan 15
Jan 15

Aug Sept
15 15

Mumbai

Tokyo

Hongkong

Aug
1515
Sept

27878.27
26,154.83
-0.67%
1.46%

20620.26
17,388.15
0.49%
2.70%

23814.65
20,846.30
-0.74%
1.41%

JanJan
1515

Sensex

Nikkei

HangSeng

Frankfurt

New York

Jan 15Jan 15

Aug 15
Sept 15

JanJan
15 15

Aug
1515
Sept

24

BUSINESS DAILY | Thursday October 1, 2015

MARKET DATA
African Indices

Nairobi Stocks

NAME

NSE 20 Share Index

4,173.52
-0.37%

Nairobi

NSE 20 - SHR IDX


LUSE ALL SHARE INDEX
JSE ALL SHARE INDEX
ALSIUG

Jan 15

PineBridge -27 Index

768.88
-0.65%

Nairobi

Jan 15

Sept 15

Active Counters
Last fri
Counter

Price

Prev fri
Price

Safaricom

15.20

15.15

BAT Kenya

%
Change

Total Shares
Traded

0.33%

16,375,500

817.00

788.00

3.68%

1,179,600

KCB

47.00

47.75

-1.57%

868,900

KQ

5.50

5.65

-2.65%

644,700

45.00

44.50

1.12%

597,900

Equity

Gainers
Lastfri
Counter

Price

Prev fri

net

Price

Change

Change

Crown Berger

64.00

61.00

3.00

4.92%

Unga

43.00

41.00

2.00

4.88%

BAT Kenya

817.00

788.00

29.00

3.68%

Home Africa GEMS 1.80

1.75

0.05

2.86%

Nairobi Securities Exchg21.25 20.75

0.50

2.41%

net
Change

%
Change

Losers
Counter

Lastfri
Price

Prev fri
Price

Atlas Dev. Ltd GEMS 3.50

3.85

-0.35

-9.09%

Flame Tree GEMS

7.00

7.60

-0.60

-7.89%

Uchumi

10.05

10.40

-0.35

-3.37%

WPP Scangroup

30.00

31.00

-1.00

-3.23%

5.50

5.65

-0.15

-2.65%

KQ

CLOSE

4,173.52

4,173.52

4,173.52

4,189.22

ZAMBIA

5,800.24

0.00

0.00%

5,800.24

5,800.24

5,800.24

5,800.24

SOUTH AFRICA

49,976.27

592.34

1.20%

49,933.38

50,081.47

49,669.36

49,383.93

-32.00

-1.64%

1,956.00

1,956.00

1,956.00

1,956.00

0.02

0.02%

131.91

131.91

131.91

131.91

MOROCCO

19,514.48

24.88

0.13%

19,474.47

19,525.65

19,474.47

19,489.60

MALAWI

15,824.68

5.38

0.03%

15,819.30

15,819.30

15,819.30

15,819.30

NIGERIA

30,574.01

-250.99

-0.81%

30,825.00

30,906.27

30,571.49

30,825.00

TANZANIA

2,531.08

17.32

0.69%

2,513.76

2,513.76

2,513.76

2,513.76

EGYPT

7,332.88

1.35

0.02%

7,333.86

7,366.08

7,332.53

7,331.53

TUNISIA

5,274.51

-17.42

-0.33%

5,292.86

5,292.86

5,259.84

5,291.93

RWANDA

135.46

0.00

0.00%

135.46

135.46

135.46

135.46

Daily Share Report


52 WK
HIGH
AGRICULTURAL
100.00
EAAGADS AIMS
383.00
KAKUZI
242.00
KAPCHORUA TEA AIMS
1248.00
LIMURU TEA AIMS
19.50
SASINI
435.00
WILLIAMSON TEA AIMS
AUTOMOBILES & ACCESSORIES
62.00
CAR & GEN
13.60
MARSHALLS
7.10
SAMEER
BANKING
18.00
BARCLAYS
141.00
CFC STANBIC
280.00
DTBK
63.00
EQUITY
55.00
HF
141.00
I&M HOLDINGS
65.50
KCB
29.00
NBK
85.00
NIC BANK
357.00
STAN. CHART.
23.25
CO-OP BANK
COMMERCIAL
13.75
ATLAS DEV. LTD GEMS
8.50
EXPRESS (K) AIMS
20.25
HUTCHINGS BIEMER
11.50
KQ
LONGHORN PUBLISHERS AIMS 30.75
316.00
NATION MEDIA
47.50
STANDARD GRP
40.00
TPS EA
14.00
UCHUMI
52.00
WPP SCANGROUP
CONSTRUCTION & ALLIED
95.00
ARM CEMENT LTD
181.00
BAMBURI
187.00
CROWN BERGER
17.00
EA CABLES
75.00
EAPC
ENERGY & PETROLEUM
13.15
KENGEN
10.50
KENOLKOBIL
18.50
KENYA POWER
32.00
TOTAL
23.00
UMEME
INSURANCE
40.00
BRITISH AMERICAN
12.40
CIC INSURANCE
600.00
JUBILEE
20.00
KENYA RE
28.00
LIBERTY KENYA
141.00
PAN AFRICA
INVESTMENT
84.50
CENTUM INVEST.
4.85
HOME AFRICA GEMS
KURWITU VENTURES LTD GEMS1500.00
10.85
OLYMPIA
22.75
TRANSCENTURY AIMS
INVESTMENT SERVICES
NAIROBI SECURITIES EXCHG 28.00
MANUFACTURING & ALLIED
11.10
A. BAUMANN AIMS
165.00
BOC GASES
1050.00
BAT KENYA
30.00
CARBACID
355.00
EABL
5.35
EVEREADY EA
14.00
FLAME TREE S GEMS
192.00
K. ORCHARDS AIMS
3.85
MUMIAS
56.50
UNGA
TELECOMMUNICATION & TECHNOLOGY
SAFARICOM
17.90

GEMS

MARKET UPDATES

LOW

-0.37%

CFG INDEX

RSE ALLSHARE IND

Sept 15

PCT.CHNG

131.93

TUN MAIN INDEX

Nairobi

NET.CHNG

1,924.00

EGX 30 IDX/D

146.92
0.04%

HIGH

-15.70

UGANDA

DSE ALL SHR IDX

All Share Index (NASI)

OPEN

4,173.52

ZIMBABWE

NSE ALL SHARE/D

Sept 15

LAST

KENYA

ZSE INDUSTRIAL

MALAWI ALL SHR

Jan 15

LOCATION

52 WK
LOW

YTD
%

PRICE (KSH)
SEP-30-2015

PRICE (KSH)
SEP-29-2015

DAILY
PRICE
CHANGE

DAILY
TRADED
SHARES

SHARES
ISSUED

MKT CAP.
KSHS MN

EPS
LATEST
12MNTH

P/E
TRAILING

PBV
TRAILING

DPS
LATEST
12MNTH

TOTAL
DIVIDEND
YIELD

27.00
171.00
115.00
771.00
11.50
240.00

-28.57%
72.22%
44.53%
40.73%
27.24%
49.19%

29.50
315.00
198.00
1085.00
16.35
361.00

30.00
310.00
198.00
1085.00
16.35
370.00

-1.67%
1.61%
0.00%
0.00%
0.00%
-2.43%

1,200
1,600
1,700

32,157,000
19,599,999
3,912,000
1,800,000
228,055,500
8,756,320

964.71
6,722.80
778.49
1,953.00
3,637.49
3,231.08

0.25
8.17
-5.82
-0.28
0.54
23.77

118.00
38.56
-34.02
30.28
15.19

2.36
2.13
0.56
5.28
0.59
0.50

0.00
3.75
5.00
1.00
0.25
40.00

0.00%
1.19%
2.53%
0.09%
1.53%
11.08%

37.25
8.15
4.00

-25.93%
27.55%
-32.50%

40.00
12.50
4.10

40.00
12.50
4.05

0.00%
0.00%
1.23%

2,100
2,900

40,103,308
14,393,106
278,342,393

1,604.13
179.91
1,141.20

6.57
-11.90
-0.24

6.09
-1.05
-17.08

0.77
0.46
0.49

0.60
0.00
0.00

1.50%
0.00%
0.00%

12.50
85.50
193.00
36.50
20.00
105.00
42.25
16.00
41.00
220.00
17.05

-21.86%
-28.23%
-14.89%
-11.00%
-50.82%
-13.01%
-16.23%
-31.72%
-24.35%
-31.94%
-8.50%

13.15
87.00
200.00
45.00
22.25
107.00
47.00
16.85
43.00
231.00
18.20

13.05
89.00
200.00
44.50
22.50
107.00
47.75
16.90
43.50
228.00
18.30

0.77%
-2.25%
0.00%
1.12%
-1.11%
0.00%
-1.57%
-0.30%
-1.15%
1.32%
-0.55%

110,900
2,500
5,200
597,900
203,700
868,900
11,000
77,800
22,100
82,800

5,431,536,000
395,321,638
220,100,096
3,702,777,020
352,416,667
392,362,039
3,025,219,832
308,000,000
639,945,603
309,159,514
4,889,316,295

71,424.70
36,369.59
44,020.02
171,253.44
8,017.48
41,982.74
147,479.47
5,189.80
27,837.63
69,251.73
89,963.42

1.54
14.38
21.92
4.55
4.21
13.56
5.63
3.11
7.07
33.21
1.64

8.54
6.05
9.12
9.89
5.29
7.89
8.35
5.42
6.08
6.96
11.10

2.21
1.49
2.10
3.23
0.86
1.92
2.19
0.38
1.32
1.97
2.08

1.00
6.15
2.40
1.80
1.50
2.90
2.00
0.00
1.00
17.00
0.50

7.60%
7.07%
1.20%
4.00%
6.74%
2.71%
4.26%
0.00%
2.33%
7.36%
2.75%

3.50
4.05
20.25
5.00
6.00
143.00
31.00
28.25
6.40
30.00

-32.26%
0.00%
-35.06%
-32.97%
-44.49%
-2.16%
-18.24%
3.48%
-31.49%

3.50
4.20
20.25
5.50
6.25
144.00
34.00
29.50
10.05
30.00

3.85
4.20
20.25
5.65
6.20
146.00
34.00
30.25
10.40
31.00

-9.09%
0.00%
0.00%
-2.65%
0.81%
-1.37%
0.00%
-2.48%
-3.37%
-3.23%

198,200
18,200
644,700
22,500
17,500
1,500
15,000
124,800
50,400

433,063,193
35,403,790
360,000
1,496,469,035
243,750,000
188,542,286
81,731,808
182,174,108
364,959,616
378,865,102

1,775.56
162.86
7.29
8,529.87
1,620.94
27,715.72
2,778.88
5,146.42
3,667.84
12,123.68

-2.53
-2.18
-18.34
-13.35
1.62
13.10
2.57
1.35
1.45
1.50

-1.38
-1.93
-1.10
-0.41
3.86
10.99
13.23
21.85
6.93
20.00

0.75
2.63
0.84
3.32
1.53
0.49
0.91
1.39

0.00
0.00
0.00
0.00
2.00
10.00
0.50
1.35
0.30
0.00

0.00%
0.00%
0.00%
0.00%
32.00%
6.94%
1.47%
4.58%
2.99%
0.00%

43.00
135.00
54.00
11.00
50.00

-49.71%
21.58%
-45.05%
-29.32%
-13.79%

43.50
168.00
64.00
11.30
50.00

43.25
169.00
61.00
11.45
50.00

0.58%
-0.59%
4.92%
-1.31%
0.00%

17,300
300
36,100
23,500
3,500

495,275,000
362,959,275
23,727,000
253,125,000
90,000,000

21,296.83
61,340.12
1,459.21
2,923.59
4,770.00

3.01
9.80
9.01
1.37
-4.30

14.45
17.14
7.10
8.25
-11.63

2.65
2.11
1.12
1.19
0.93

0.60
12.00
1.75
1.00
0.00

1.38%
7.14%
2.73%
8.85%
0.00%

7.20
7.55
13.00
18.00
16.00

-19.42%
1.72%
10.73%
-21.88%
-17.38%

8.35
8.85
15.80
19.15
17.35

8.30
8.85
16.00
18.75
17.35

0.60%
0.00%
-1.25%
2.13%
0.00%

122,900
49,300
104,200
9,600
-

2,198,361,456
1,471,761,200
1,951,467,045
175,028,706
1,623,878,005

18,136.48
12,951.50
30,930.75
3,238.03
28,011.90

1.29
0.74
3.31
2.26
1.34

6.47
11.96
4.77
8.47
12.95

0.27
1.95
0.71
0.66
3.08

0.40
0.20
0.50
0.70
0.90

4.79%
2.26%
3.16%
3.66%
5.19%

14.00
6.00
400.00
15.45
18.75
60.00

-43.70%
-27.08%
11.56%
11.14%
-8.60%
-45.83%

16.50
7.05
504.00
19.05
21.00
65.00

16.75
7.00
502.00
18.95
21.25
65.00

-1.49%
0.71%
0.40%
0.53%
-1.18%
0.00%

91,300
163,000
1,500
242,900
14,500

1,938,415,838
2,615,538,528
59,895,000
699,949,068
535,707,499
144,000,000

32,856.15
18,177.99
30,067.29
13,299.03
11,651.64
9,648.00

1.31
0.43
48.00
4.48
2.14
9.07

12.60
16.40
10.50
4.25
9.81
7.17

1.84
2.28
2.82
0.74
2.13
1.87

0.30
0.10
8.50
0.70
0.50
0.00

1.82%
1.42%
1.69%
3.67%
2.38%
0.00%

45.00
1.70
1500.00
2.50
12.00

-14.75%
-57.32%
-15.38%
-29.72%

52.00
1.80
1500.00
4.35
13.60

52.00
1.75
1500.00
4.40
13.60

0.00%
2.86%
0.00%
-1.14%
0.00%

59,000
103,800
13,900
2,100

665,441,775
405,255,320
102,272
40,000,000
280,284,476

34,935.69
709.20
153.41
176.00
3,783.84

10.44
-0.04
-62.40
-1.04
-8.53

4.98
-45.00
-24.04
-4.18
-1.59

1.71
0.22
0.72

0.00
0.00
0.00
0.00
0.00

0.00%
0.00%
0.00%
0.00%
0.00%

21.25

20.75

2.41%

23,900

194,625,000

4,087.13

2.13

9.98

5.67

0.38

1.79%

1.65
10.79
2.30
8.08
1.98

0.00%
4.23%
5.20%
2.01%
2.15%
0.00%
0.00%
0.00%
0.00%
1.74%
4.21%

18.00
11.10
115.00
670.00
14.00
261.00
2.65
6.50
41.50
1.35
34.25

0.00%
-1.60%
-13.22%
-31.03%
-8.77%
-17.57%
-9.09%
-2.56%
3.14%

11.10
123.00
817.00
14.95
279.00
3.05
7.00
100.00
1.85
43.00

11.10
123.00
788.00
15.00
281.00
3.05
7.60
100.00
1.90
41.00

0.00%
0.00%
3.68%
-0.33%
-0.71%
0.00%
-7.89%
0.00%
-2.63%
4.88%

1,179,600
7,900
347,800
5,100
22,300
371,900
100

3,840,066
19,525,446
100,000,000
254,851,988
790,774,356
210,000,000
161,866,804
12,868,124
1,530,000,000
75,708,873

42.62
2,245.43
80,000.00
3,899.24
229,324.56
630.00
1,133.07
1,286.81
2,983.50
3,104.06

-2.02
11.76
42.55
1.93
11.31
-0.85
0.99
0.15
-1.77
3.65

-5.50
10.46
19.20
7.75
24.67
-3.59
7.07
666.67
-1.05
11.78

526.32
0.27
0.69

0.00
5.20
42.50
0.30
6.00
0.00
0.00
0.00
0.00
0.75

11.85

7.83%

15.20

15.15

0.33%

16,375,500

40,065,428,000

606,991.23

0.80

19.00

7.60

0.64

AIMS

TO RECEIVE NATIONMOBILE ALERTS ON YOUR CELLPHONE, SMS THE STOCK YOU WANT, E.G. STOCKS KENGEN, TO 20667.
6667. EACH
EACHALERT
ALERTCOSTS
COSTSSH5
SH5ABOVE
ABOVENORMAL
NORMALRATES.
RATES.

Thursday October 1, 2015 | BUSINESS DAILY

MARKET DATA

MARKET DATA
Equities & Bonds
Kenya Treasury and Infrastructure Bonds

Share Price Performance Scorecard


SCORECARD AS AT 30TH SEPT 2015
NAME
A BAUMANN
ATLAS DEVPNT & SPPRT SERV
ATHI RIVER MINING
BAMBURI
BARCLAYS KEN
BAT KENYA
BOC KENYA
BRITISH AMERICAN
CAR & GENERAL
CARBACID INV
CENTUM INV
CFC STANBIC BANK
CIC INSURANCE
CO-OP BANK
CROWN BERGER
DIAMOND KEN
EA CABLES
EA PORT CEM
EAAGADS
EA AFR BREW
EQUITY BANK
EVEREADY EA
EXPRESS KEN
FLAME TREE HLDNGS
G WILLIAMSON
HUTCHINGS BIEMER
HOME AFRICA LIMITED
HOUSING FIN
I&M HOLDING
JUBILEE HLDS
KAKUZI
KAPCHORUA
KEN ORCHARDS
KENGEN
KENYA AIRWAYS
KENYA COM BK
KENOLKOBIL
KENYA POWER
KENYA RE
KURWITU
LIBERTY HOLDINGS
LIMURU TEA
LONGHORN
MARSHALL
MUMIAS SUGAR
NAIROBI SECURITIES
NATION MEDIA
NATL BANK KEN
NIC BANK
OLYMPIA CAPITAL
PAN AFR INS
SAFARICOM
SAMEER AFRICA
SASINI
WPP SCANGROUP
STANDARD GRP
STD CHART KEN
TOTAL KENYA
TPS (EA)
TRANSCENTURY
UCHUMI SUPER
UNGA GROUP

PREVIOUS
11.10
3.85
43.25
169.00
13.05
788.00
123.00
16.75
40.00
15.00
52.00
89.00
7.00
18.30
61.00
200.00
11.45
50.00
30.00
281.00
44.50
3.05
4.20
7.60
370.00
20.25
1.75
22.50
107.00
502.00
310.00
198.00
100.00
8.30
5.65
47.75
8.85
16.00
18.95
1500.00
21.25
1085.00
6.20
12.50
1.90
20.75
146.00
16.90
43.50
4.40
65.00
15.15
4.05
16.35
31.00
34.00
228.00
18.75
30.25
13.60
10.40
41.00

CLOSE
11.10
3.50
43.50
168.00
13.15
817.00
123.00
16.50
44.00
14.95
52.00
87.00
7.05
18.20
64.00
200.00
11.30
50.00
29.50
279.00
45.00
3.05
4.20
7.00
361.00
20.25
1.80
22.25
107.00
504.00
315.00
198.00
100.00
8.35
5.50
47.00
8.85
15.80
19.05
1500.00
21.00
1085.00
6.25
12.50
1.85
21.25
144.00
16.85
43.00
4.35
65.00
15.20
4.10
16.35
30.00
34.00
231.00
19.15
29.50
13.60
10.05
43.00

% 1D
0.00
-9.09
0.58
-0.59
0.77
3.68
0.00
-1.49
0.00
-0.33
0.00
-2.25
0.71
-0.55
4.92
0.00
-1.31
0.00
-1.67
-0.71
1.12
0.00
0.00
-7.89
-2.43
0.00
2.86
-1.11
0.00
0.40
1.61
0.00
0.00
0.60
-2.65
-1.57
0.00
-1.25
0.53
0.00
-1.18
0.00
0.81
0.00
-2.63
2.41
-1.37
-0.30
-1.15
-1.14
0.00
0.33
1.23
0.00
-3.23
0.00
1.32
2.13
-2.48
0.00
-3.37
4.88

% 5D
0.00
-15.66
-1.14
-4.00
1.15
8.93
0.00
-3.23
0.00
4.91
-1.89
-3.33
0.71
-0.55
7.56
0.50
-0.44
-5.66
-1.67
-3.79
-1.64
1.67
-8.70
-2.10
7.44
0.00
5.88
2.30
-1.83
0.80
-8.16
-0.50
0.00
0.60
-3.51
-0.53
1.72
-1.25
2.14
0.00
-1.18
0.00
-11.35
2.46
-2.63
2.41
-4.00
-0.30
-0.58
-2.25
-2.26
0.66
2.50
3.81
-4.00
0.00
0.87
-1.54
1.72
6.25
-0.99
5.52

% 1M
0.00
-42.15
-11.68
9.09
2.33
9.52
5.13
3.13
0.00
-9.12
8.33
-3.33
5.22
2.82
-8.57
2.56
-13.08
-7.41
-1.67
3.33
16.88
-7.58
-2.33
0.00
-9.30
0.00
-12.20
9.88
-1.83
-6.67
-7.89
-7.48
0.00
11.33
-3.51
6.82
4.73
6.76
14.76
0.00
0.00
0.00
-5.30
0.00
2.78
6.25
-12.73
-2.88
1.18
-11.22
-0.76
7.42
1.23
-8.40
-9.77
-10.53
-1.70
-5.43
-8.53
-2.86
23.31
6.83

% 3M
0.00
-68.18
-42.00
9.09
-15.43
10.26
-11.51
-19.51
-9.09
-17.63
-20.61
-23.68
-11.32
-16.32
-20.99
-11.50
-29.60
-13.04
-22.88
-8.22
-5.26
-25.61
-16.00
-17.65
-12.80
0.00
-37.93
-18.35
-8.55
-10.32
2.61
52.31
0.00
-9.73
-25.17
-14.55
4.73
-13.90
6.42
0.00
-13.40
-9.58
-14.97
-0.40
-21.28
7.05
-27.64
-12.69
-19.63
-12.12
-13.91
-7.60
-18.81
-0.61
-29.82
-15.00
-22.48
-11.95
-15.71
5.84
12.29
-8.02

% 6M
0.00
-69.57
-45.63
5.00
-24.86
2.13
-8.89
-38.32
-14.44
-31.26
-17.46
-30.40
-28.43
-13.33
-46.22
-17.36
-27.10
-15.25
-9.92
-13.89
-12.62
-22.78
-25.00
-25.53
25.78
0.00
0.00
-39.86
-14.40
-9.19
13.72
52.31
-10.71
-15.23
-34.13
-22.95
-5.35
-11.73
1.60
0.00
-14.29
-3.47
-28.98
4.17
-19.57
7.05
-41.46
-31.22
-27.12
-26.89
-49.61
-8.98
-26.13
18.05
-31.82
-9.93
-33.04
-24.90
-11.94
0.00
-6.07
-2.27

Corporate Bonds
SEPTEMBER 30, 2015

25

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE


ISSUE
MATURITY
ISSUED VALUE
COUPON
DATE
DATE
IN MILLIONS
(%)

ISSUE NO.
CENTUM BOND SENIOR UNSECURED FIXED RATE AND EQUITY LINKED NOTES
26-SEP-12
18-SEP-17
CTNB.BD.18.09.17/13.50
26-SEP-12
18-SEP-17
CTNB.BD.18.09.17/12.75
15-JUN-15
8-JUN-20
CTNB.BD.08.06.20/13
15-JUN-15
8-JUN-20
CTNB.BD.08.06.20/12.5
15-JUN-15
8-JUN-20
CTNB.BD.08.06.20/12.5V
CONSOLIDATED BANK OF KENYA LTD MEDIUM TERM NOTE PROGRAMME
CON.BD-FXD(SN)/2012/7YR
30-JUL-12
24-JUL-19
30-JUL-12
22-JUL-19
CON.BD-FXD(SBN)/2012/7YR
30-JUL-12
22-JUL-19
CON.BD-FR(SN)/2012/7YR
SHELTER AFRIQUE MEDIUM TERM NOTES
17-DEC-12
14-DEC-15
FXD 2/2012/3YR 2ND TRANCHE
30-SEP-13
24-SEP-18
FXD 1/13/05YR
30-SEP-13
24-SEP-18
FR 1/13/05YR
MRM
27-OCT-08
17-OCT-16
FR (MRM) 2008/8YR
27-OCT-08
17-OCT-16
FXD (MRM) 2008/8YR
CFC STANBIC BANK SENIOR & SUBORDINATED BOND ISSUE
7-JUL-09
7-JUL-16
FR (CFC STANBIC) 2009/7YR
7-JUL-09
7-JUL-16
FXD (CFC STANBIC) 2009/7YR
KENGEN PUBLIC INFRASTRUCTURE BOND OFFER 2019
2-NOV-09
31-OCT-19
FXIB 1/2009/10YR
SAFARICOM LTD DOMESTIC MEDIUM TERM NOTE
20-DEC-10
20-DEC-15
FR2 (SAFARICOM LTD) 2009/5YR
20-DEC-10
20-DEC-15
FXD2 (SAFARICOM LTD) 2009/5YR
HOUSING FINANCE MEDIUM TERM NOTE
22-OCT-12
14-OCT-19
FXD (HFCK) 02/2012/7YR 2ND TRANCHE
26-OCT-10
2-OCT-17
FR (HFCK) 2010/7YR
26-OCT-10
2-OCT-17
FXD (HFCK) 2010/7YR
I&M MEDIUM TERM NOTE
13-DEC-13
8-MAR-19
FXD I&M-01/13/5.25
13-DEC-13
8-MAR-19
FRN I&M-01/13/5.25
BRITAM MEDIUM TERM NOTE
22-JUL-14
15-JUL-19
BRTB.BD.22/07/19-0037-13
UAP HOLDINGS MEDIUM TERM NOTE
28-JUL-14
22-JUL-19
UAP.BD.22.07.2019
NIC MEDIUM TERM NOTE
8-SEP-14
9-SEP-19
NIC.BD.09/09/19-0039-12.5
CIC INSURANCE GROUP LTDMEDIUM TERM NOTE
8-OCT-14
2-OCT-19
CIC.BD.22.07.2019
CFC STANBIC MULTICURRENCY MEDIUM TERM NOTE
15-DEC-14
8-DEC-21
CFCB.BD.08/12/21-0042-12.95
CBA FIXED MEDIUM TERM NOTE
22-DEC-14
14-DEC-20
CBAB.BD.14/12/20-0041-12.75
EABL FIXED MEDIUM TERM NOTE
23-MAR-15
19-MAR-18
EABB.BD.19/03/18-0043-12.25
CHASE BANK FIXED MEDIUM TERM NOTE
10-JUN-15
2-JUN-22
CHBD.BD.02/06/22-0044-13.5

PRICE
(%)

TOTAL VALUE
TRADED(KSH)

% 1Y
0.00
-51.40
15.07
-24.64
-5.00
-12.14
-53.52
-14.89
-45.14
-22.39
-30.95
0.00
-16.32
-43.36
-25.93
-25.90
-31.51
-32.95
1.09
-12.62
-37.76
-46.15
24.48
0.00
0.00
-52.91
0.00
3.70
47.20
37.50
36.99
-16.92
-40.54
-18.97
-4.32
12.86
4.10
3.70
23.30
-75.49
20.19
-9.76
-9.57
-54.14
-35.19
-42.28
-25.64
-49.22
17.83
-39.71
12.76
-26.38
0.74
-30.42
-26.35
-16.31
0.00
-3.37
5.52

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE


ISSUE
DATE

MATURITY
DATE

SEPTEMBER 30, 2015

ISSUED VALUE

COUPON

IN MILLIONS

(%)

YIELD
(%)

PRICE
(%)

ONE YEAR BONDS


FXD 1/2015/1YR

29-SEP-15

26-SEP-16

24,970.05

19.06

18.5558

100.10

FXD 4/2013/2YR

24-DEC-13 21-DEC-15

25,251.00

11.55

100.62
100.02

100,000,000

TWO YEAR BONDS

FXD 1/2014/2YR

24-MAR-14 21-MAR-16

20,000.00

10.80

FXD 2/2014/2YR

26-MAY-14 23-MAY-16

20,130.15

10.79

99.99

FXD 3/2014/2YR

25-MAY-15 19-DEC-16

20,223.35

10.89

97.97

FXD 1/2015/2YR

23-JAN-15

20-FEB-17

23,592.55

11.47

101.06

FXD 2/2015/2YR

29-JUN-15

26-JUN-17

11,184.64

12.63

97.58

FIVE YEAR BONDS


FXD 2/2010/5YRP

30-NOV-10 23-NOV-15

14,973.10

6.67

98.39

FXD 1/2011/5YR

31-JAN-11

25-JAN-16

22,083.10

7.64

98.17

FXD 1/2012/5YR

28-MAY-12 22-MAY-17

31,079.55

11.86

FXD 1/2013/5YR

29-APR-13

23-APR-18

20,240.75

12.89

FXD 2/2013/5YR

1-JUL-13

25-JUN-18

26,340.05

11.31

FXD 3/2013/5YR

25-NOV-13 19-NOV-18

14,937.80

11.95

100.47

FXD 1/2014/ 5YR

28-APR-14 22-APR-19

25,540.95

10.87

96.98

100.99
14.2458

96.76

50,000,000

100.38

FXD 2/2014/ 5YR

23-JUN-14

17-JUN-19

16,418.25

11.93

100.15

FXD 1/2015/ 5YR

29-JUN-15

22-JUN-20

11,996.96

13.19

96.42

102.16

TEN YEAR BONDS


FXD 1/2006/10YR

27-MAR-06 14-MAR-16

3,451.05

14.00

FXD 2/2006/10YR

29-MAY-06 16-MAY-16

5,028.10

14.00

102.89

FXD 1/2007/10YR

29-OCT-07 16-OCT-17

9,308.80

10.75

99.39

FXD 1/2008/10YR

29-OCT-07 12-FEB-18

2,992.75

10.75

99.34

FXD 2/2008/10YR

28-JUL-08

13,504.70

10.75

99.32

FXD 3/2008/10YR

29-SEP-08 28-SEP-18

4,151.60

10.75

99.29

FXD 1/2009/10YR

27-SEP-09 15-APR-19

4,966.85

10.75

96.59

16-JUL-18

FXD 1/2010/10YR

26-APR-10 13-APR-20

19,394.15

8.79

87.89

FXD 2/2010/10YR

1-NOV-10

19-OCT-20

18,849.90

9.31

90.05

FXD 1/2012/10YR

25-JUN-12

13-JUN-22

16,803.75

12.71

100.60

FXD 1/2013/10YR

1-JUL-13

19-JUN-23

12,643.05

12.37

91.04

FXD 1/2014/10YR

25-MAY-15 15-JAN-24

5,063.88

12.18

97.84

25-SEP-06 11-SEP-17

4,031.40

13.75

105.03

ELEVEN YEAR BONDS


FXD1/2006/11YR
TWELVE YEAR BONDS
FXD1/2006/12YR

28-AUG-06 13-AUG-18

3,900.95

14.00

105.21

FXD1/2007/12YR

28-MAY-07 13-MAY-19

4,864.60

13.00

105.67

109.04

FIFTEEN YEAR BONDS


FXD1/2007/15YR

26-MAR-07 7-MAR-22

3,654.60

14.50

FXD2/2007/15YR

25-JUN-07 6-JUN-22

7,236.95

13.50

99.31

FXD3/2007/15YR

26-NOV-07 7-NOV-22

17,568.00

12.50

99.44

FXD1/2008/15YR

31-MAR-08 13-MAR-23

7,830.90

12.50

100.61

FXD1/2009/15YR

26-OCT-09 7-OCT-24

9,420.45

12.50

98.33

FXD1/2010/15YR

29-MAR-10 10-MAR-25

20,823.73

10.25

88.16

FXD2/2010/15YR

25-APR-11

8-DEC-25

13,513.10

9.00

79.38

13.50
12.75
13.00
12.50

105.26
99.96

1,480.60
196.50
1.00

13.25
13.60

99.17
100.00

FXD1/2012/15YR

24-SEP-12

6-SEP-27

21,089.45

11.00

85.30

500.00
4,239.70
760.30

12.75
12.75

100.71
100.00

FXD1/2013/15YR

25-FEB-13

7-FEB-28

40,886.33

11.25

90.07

FXD2/2013/15YR

29-APR-13

10-APR-28

17,385.85

12.00

95.85

TWENTY YEAR BOND

13.00

100.00
100.00

FXD1/2008/20YR

30-JUN-08 5-JUN-28

20,360.95

13.75

106.30

97.91
2,402.09

12.50

100.00
100.00

FXD1/2011/20YR

30-MAY-11 5-MAY-31

9,365.80

10.00

79.84

FXD1/2012/20YR

26-NOV-12 1-NOV-32

43,082.72

12.00

87.63

14,062.00

12.50

101.83

TWENTY FIVE YEAR BOND

200.00
4,287.00

8.00

93.84
103.00

2,969.10
1,166.50
5,864.40

13.00

94.03

8.50

94.67

3,429.00
226.00

12.80

102.06

6,000.00

13.00

2,000.00
5,514.50

621.50
1,378.50

TRADED(KSH)

ISSUE NO.

2,917.10
1,250.80
3,899.22
2,100.77
2,100.77

1 50,000

TOTAL VALUE

FXD1/2010/25YR

28-JUN-10

28-MAY-35

20,192.50

11.25

82.23

28-FEB-11

21-JAN-41

23,888.95

12.00

85.54

THIRTY YEAR BOND


SDB 1/2011/30YR

INFRASTRUCTURE BONDS
IFB 1/2009/12YR

23-FEB-09 8-FEB-21

19,726.85

12.50

105.16

IFB 2/2009/12YR

7-DEC-09

22-NOV-21

18,897.65

12.00

102.41

99.95

IFB 1/2010/8YR

1-MAR-10

19-FEB-18

15,908.05

9.75

98.55

13.00

99.98

IFB 2/2010/9YR

31-AUG-10 19-SEP-19

32,871.55

6.00

83.99

12.50

99.84

IFB 1/2011/12YR

3-OCT-11

18-SEP-23

43,447.35

12.00

96.80

IFB 1/2013/12YR

30-SEP-13

15-SEP-25

38,841.68

11.00

94.90

IFB 1/2014/12YR

27-OCT-14

12-OCT-26

35,060.55

11.00

IFB 1/2015/12YR

30-MAR-15 15-MAR-27

25,695.35

11.00

15.6

83.93

300,000,000

IFB 1/2015/12YR

30-MAR-15 15-MAR-27

25,695.35

11.00

15.25

83.93

245,000,000

5,000.00

13.00

102.49

5,080.00

12.95

102.02

7,000.00

12.75

100.92

9,047.35

12.25

100.20

IFB 1/2015/12YR

30-MAR-15 15-MAR-27

25,695.35

11.00

13.9077

83.93

200,000,000

4,822.40

13.25

99.99

IFB 1/2015/12YR

30-MAR-15 15-MAR-27

25,695.35

11.00

14

83.93

105,000,000

IFB 1/2015/12YR

30-MAR-15 15-MAR-27

25,695.35

11.00

13.5

83.93

200,000,000

84.41

26

BUSINESS DAILY | Thursday October 1, 2015

MARKET DATA
Global Markets & Currencies
Currencies

Global Indexes

Kenya Shilling
CURRENCY
US DOLLAR
STG POUND
EURO
SA RAND
KES / USHS
KES / TSHS
KES / RWF
KES / BIF
AE DIRHAM
CAN $
S FRANC
JPY (100)
SW KRONER
NOR KRONER
DAN KRONER
IND RUPEE
HONGKONG DOLLAR
SINGAPORE DOLLAR
SAUDI RIYAL
CHINESE YUAN
AUSTRALIAN $
SOURCE CBK

BUY
105.19
159.41
118.21
7.56
34.97
20.45
6.93
14.70
28.64
78.44
108.08
87.67
12.53
12.40
15.85
1.60
13.57
73.83
28.05
16.55
73.76

DAILY
SELL
105.39
159.75
118.45
7.58
35.13
20.53
7.01
14.82
28.70
78.61
108.32
87.87
12.56
12.44
15.88
1.60
13.60
74.02
28.10
16.59
73.94

MEAN
105.29
159.58
118.33
7.57
35.05
20.49
6.97
14.76
28.67
78.53
108.20
87.77
12.55
12.42
15.87
1.60
13.59
73.92
28.08
16.57
73.85

US Dollar
BACKGROUND
EURO
JAPANESE YEN
BRITISH POUND
SWISS FRANC
AUSTRALIAN DOLLAR
SWEDISH KRONA
CANADIAN DOLLAR
CHINESE YUAN
NORWEGIAN KRONE
BOSNIAN MARK
DANISH KRONE
RUSSIA ROUBLE
TURKISH LIRA
ICELAND KRONA
INDIAN RUPEE
POLISH ZLOTY
CZECH KORUNA
HUNGARIAN FORINT
UKRAINE HRYVNIA
ISRAEL SHEKEL
ALBANIAN LEK
BULGARIAN LEV
SERBIAN DINAR
CYPRUS POUND
ESTONIAN KROON
GEORGIAN LARI
THAI BAHT
GIBRALTAR POUND
CROATIAN KUNA
KAZAKHSTAN TENGE
LITHUANIA LITAS
LATVIAN LATS
MOLDOVAN LEU
MACEDONIA DENAR
MALTESE LIRA
ROMANIAN LEU
SLOVAK KORUNA
SERBIAN DINAR
ARMENIAN DRAM
UAE DIRHAM
ANGOLAN KWANZA
BURUNDI FRANC
BOTSWANA PULA
CONGO FRANC
CAPE VERDE ESCUDO
DIJIBOUTI FRANC
ALGERIAN DINAR
EGYPT POUND
ETHIOPIAN BIRR
GHANAIAN CEDI
GAMBIAN DALASI
ERITREA NAFKA
GUINEA FRANC
KENYA SHILLING
COMORO FRANC
LIBERIAN DOLLAR
LESOTHO LOTI
LIBYAN DINAR
MOROCCAN DIRHAM
MALAGASY ARIARY
MAURITANIAOUGUIYA
MALAWI KWACHA
MOZAMBIQUEMETICAL
NIGERIAN NAIRA
RWANDA FRANC
SC RUPEE
SUDANESE DINAR
SUDAN POUND
ST HELENA POUND
SIERRALEONLEON
SAO TOME DOBRA
SOMALI SHILLING
SWAZILAND LILAGENI
TUNISIAN DINAR
TANZANIA SHILLING
UGANDA SHILLING
CFA FRANC
CFA FRANC
MAURITIUS RUPEE
SOUTH AFRICA RAND
ZIMBABWE DOLLAR

FTSE 100

BID
1.12
120.32
1.52
0.97
0.70
8.39
1.34
6.36
8.48
1.71
6.66
65.49
3.03
127.17
65.58
3.78
24.24
279.26
21.05
3.92
124.07
1.75
59.99
0.40
11.70
2.35
36.32
1.51
6.82
271.80
2.85
0.51
19.97
54.78
3.41
3.94
21.55
106.61
470.00
3.67
134.85
1,566.00
0.09
915.00
98.28
176.70
105.80
7.83
20.72
3.68
38.60
15.12
7,294.50
104.75
437.15
87.00
13.81
1.37
9.69
3,200.00
286.00
549.20
42.00
198.00
707.00
12.94
200.02
2,025.50
1.55
4,145.00
21,205.00
642.00
13.81
1.96
2,155.00
3,688.00
585.26
585.26
35.45
13.82
378.00

ASK
1.12
120.33
1.52
0.97
0.70
8.39
1.34
6.36
8.48
1.76
6.66
65.50
3.03
127.46
65.59
3.78
24.28
279.66
21.25
3.93
124.67
1.75
60.19
0.40
11.71
2.43
36.34
1.51
6.82
272.10
2.85
0.51
20.20
55.15
3.42
3.94
21.60
107.03
475.00
3.67
135.85
1,586.00
0.10
935.00
99.38
178.40
106.15
7.83
21.12
3.74
39.60
15.62
7,794.50
104.95
438.15
88.00
13.84
1.37
9.71
3,250.00
298.08
561.50
42.84
198.10
716.00
13.26
201.02
2,035.60
1.56
4,245.00
22,519.00
649.00
13.85
1.97
2,165.00
3,698.00
594.26
602.86
35.65
13.83
381.00

CLOSE

INDEX (REGION/COUNTRY)

YTD

52 WEEK

CHG

% CHG

% CHG

HIGH

3-YR
LOW

% CHG

% CHG
4.6

GLOBAL
THE GLOBAL DOW (WORLD)

2,200.33

-12.27

-0.55

-12

2,639.52

2,200.33

-13.2

THE GLOBAL DOW EURO (WORLD)

1,846.63

-12.12

-0.65

-5.1

2,305.98

1,752.10

-2.3

9.5

DJ GLOBAL INDEX (WORLD)

288.56

-1.97

-0.68

-10.1

341.62

288.56

-10

4.4

DJ GLOBAL EX U.S. (WORLD)

199.02

-2.86

-1.42

-11.6

246.68

199.02

-15.2

-0.1

DJ ASIA-PACIFIC TSM (ASIA-PACIFIC)

1,269.58

-34.41

-2.64

-11

1,619.39

1,269.58

-12.8

0.5

ALL ORDINARIES (AUSTRALIA)

4,958.10

-187

-3.63

-8

5,954.80

4,958.10

-6.4

S & P/ASX 200 (AUSTRALIA)

4,918.40

-195.1

-3.82

-9.1

5,982.70

4,918.40

-7.1

3.9

DOW JONES CHINA 88 (CHINA)

245.31

-4.89

-1.96

-17.2

408.69

185.44

27.6

8.6

SHANGHAI COMPOSITE (CHINA)

3,038.14

-62.62

-2.02

-6.1

5,166.35

2,290.44

28.5

13.3

HANG SENG (HONG KONG)

20,556.60

-629.72 -2.97

-12.9

28,442.75

20,556.60

-10.4

-0.5

S & P BSE SENSEX (INDIA)

25,778.66

161.82

0.63

-6.3

29,681.77

24,893.81

-3.2

11.2

JAKARTA COMPOSITE (INDONESIA)

4,178.41

57.91

1.41

-20.1

5,523.29

4,120.50

-18.7

-0.7

NIKKEI 300 (JAPAN)

277.30

-13.03

-4.49

-2.5

343.20

22.8

NIKKEI STOCK AVG (JAPAN)

16,930.84

-714.27 -4.05

-3

20,868.03

TOPIX INDEX (JAPAN)

1,375.52

-63.15

-4.39

-2.3

1,691.29

KUALA LUMPUR COMPOSITE (MALAYSIA) 1,603.32

-5.11

-0.32

-9

NZSX-50 (NEW ZEALAND)

-86.71

-1.52

0.8

ASIA PACIFIC

5,612.42

238.07

3.8

14,532.51

4.7

24

1,177.22

3.7

23.1

1,862.80

1,532.14

-13.2

-0.7

5,957.85

5,132.02

6.4

13.5
27.8

KSE 100 (PAKISTAN)

32,214.58

-475.44 -1.45

0.3

36,228.88

28,927.04

8.4

PSEI (PHILIPPINES)

6,859.29

43.7

0.64

-5.1

8,127.48

6,791.01

-5.8

8.7

STRAITS TIMES (SINGAPORE)

2,787.94

-3.98

-0.14

-17.2

3,539.95

2,787.94

-14.9

-3.1

KOSPI (SOUTH KOREA)

1,942.85

...

CLOSED

1.4

2,173.41

1,829.81

-4.4

-0.8

COLOMBO STOCK EXCHANGE (SRI LANKA) 7,085.38

6.74

0.1

-2.9

7,605.79

6,782.43

-2.3

5.9

WEIGHTED (TAIWAN)

8,132.35

...

CLOSED

-12.6

9,973.12

7,410.34

-9.5

1.7

SET (THAILAND)

1,348.84

-3.29

-0.24

-9.9

1,615.89

1,301.06

-14.9

1.3

EUROPE
STOXX EUROPE 600 (EUROPE)

339.23

-2.34

-0.69

-1

414.06

310.03

-1.1

8.1

STOXX EUROPE 50 (EUROPE)

2,905.25

-20.28

-0.69

-3.3

3,591.47

2,781.33

-5.3

4.9

EURO STOXX 50 (EURO ZONE)

3,029.86

-9.58

-0.32

-3.7

3,828.78

2,874.65

-6.1

7.3

EURO STOXX (EURO ZONE)

317.56

-1.29

-0.4

-0.7

392.35

288.41

-1.4

9.1

ATX (AUSTRIA)

2,187.68

19.22

0.89

1.3

2,681.44

2,032.13

-0.7

1.5
11.6

BEL-20 (BELGIUM)

3,296.76

-21.13

-0.64

0.4

3,905.71

2,887.73

2.3

PX 50 (CZECH REPUBLIC)

959.40

-2.98

-0.31

1.3

1,058.40

901.30

-3.2

0.2

OMX COPENHAGEN (DENMARK)

815.78

-15.31

-1.84

20.8

923.55

611.68

18.1

21.9

OMX HELSINKI (FINLAND)

7,563.22

28.87

0.38

-2.5

9,374.42

7,010.83

-1.4

11.4

CAC 40 (FRANCE)

4,343.73

-13.32

-0.31

1.7

5,268.91

3,918.62

-1.6

DAX (GERMANY)

9,450.40

-33.15

-0.35

-3.6

12,374.73

8,571.95

-0.3

9.4

BUX (HUNGARY)

20,932.82

266.1

1.29

25.8

22,850.53

15,686.69

17

FTSE MIB (ITALY)

20,726.75

-32.74

-0.16

24,031.19

18,078.97

-0.8

11.1

AEX (NETHERLANDS)

412.11

-0.21

-0.05

-2.9

509.24

376.27

-2.1

8.4

ALL-SHARES (NORWAY)

611.63

0.94

0.15

-1.3

711.22

575.27

-9.6

7.3

WIG (POLAND)

49,257.71

25.97

0.05

-4.2

57,379.45

48,602.02

-10.2

PSI 20 (PORTUGAL)

4,896.39

-69.81

-1.41

6,324.88

4,606.25

-14.7

-2

RTS INDEX (RUSSIA)

784.11

8.38

1.08

-0.8

1,123.72

629.15

-30.2

-19

IBEX 35 (SPAIN)

9,393.90

-0.3

-0.003

-8.6

11,866.40

9,291.40

-13.2

6.8

SX ALL SHARE (SWEDEN)

466.99

0.53

0.11

-1.5

564.90

405.51

4.3

12.1

SWISS MARKET (SWITZERLAND)

8,323.48

-57.74

-0.69

-7.3

9,526.79

7,899.59

-5.8

8.6

BIST 100 (TURKEY)

74,257.65

942.66 1.29

-13.4

91,412.94

71,299.43

-0.9

3.8

FTSE 100 (U.K.)

5,909.24

-49.62

-0.83

-10

7,104.00

5,898.90

-10.8

FTSE 250 (U.K.)

16,442.49

-171.67

-1.03

2.2

18,263.46

14,426.74

6.9

11.9

AMERICAS
DJ AMERICAS (AMERICAS)

455.30

0.13

0.03

-10.2

524.44

MERVAL (ARGENTINA)

9,659.57

248.2

2.64

12.6

12,548.99

SAO PAULO BOVESPA (BRAZIL)

44,131.82

175.19

0.4

-11.7

S & P/TSX COMP (CANADA)

13,036.96

32.38

0.25

-10.9

SANTIAGO IPSA (CHILE)

2,936.17

3.66

0.12

IPC ALL-SHARE (MEXICO)

42,121.51

228

0.54

CARACAS GENERAL (VENEZUELA)

11,871.34

-265.56 -2.19

454.62

-7.4

7,581.72

-23

57.9

58,051.61

43,956.63

-18.4

-9.3

15,450.87

13,004.58

-12.9

1.9

-7.2

3,359.04

2,903.95

-9.7

-11.5

-2.4

45,773.31

40,225.08

-6.4

207.6

15,580.47

2,808.13

308.1

237.8

SOURCE: WSJ MARKETS

Global Indices
NAME

LOCATION

LAST

NET.CHNG PCT.CHNG

LOW

CLOSE

DJ INDU AVERAGE

NEW YORK

16,049.13

47.24

0.30%

16,001.76

OPEN

16,118.89 15,942.37

16,001.89

FTSE EUROTOP 100

LONDON

2,727.64

71.46

2.69%

2,655.56

2,728.09

2,655.56

2,656.18

XETRA DAX PF/D

FRANKFURT

9,688.73

238.33

2.52%

9,674.61

9,696.13

9,596.95

9,450.40

CAC 40 INDEX/D

PARIS

4,464.77

121.04

2.79%

4,433.76

4,468.25

4,413.08

4,343.73

21,261.31 20,971.28

20,726.75

8,526.26

8,428.07

8,323.48

FTSE MIB/D

MILAN

21,248.98

522.23

2.52%

21,039.60

SMI PR/D

SWITZERLAND

8,516.01

192.53

2.31%

8,449.32

HIGH

HANG SENG INDE/D

HONG KONG

20,846.30

289.70

1.41%

20,795.93

20,939.39 20,683.11

20,556.60

NIKKEI 225 INDEX

TOKYO

17,388.15

457.31

2.70%

17,193.84

17,460.97

17,179.40

16,930.84

ALL ORDINARIES

AUSTRALIA

5,058.60

100.48

2.03%

4,958.10

5,058.60

4,958.10

4,958.12
3,608.29

STRAITS TIMES/D

SINGAPORE

3,614.24

5.95

0.16%

3,598.31

3,625.76

3,590.11

SSE COMPOSITE/D

SHANGHAI

3,053.32

15.19

0.50%

3,052.84

3,073.30

3,039.74

3,038.14

S&P SENSEX/D

MUMBAI

26,154.83

376.17

1.46%

25,986.52

26,179.70

25,918.21

25,778.66

NAME
ANGLO AMERICAN/D
ASSOC.BR.FOODS/D
ADMIRAL GROUP/D
ABDN.ASSET.MAN/D
AGGREKO/D
ANTOFAGASTA/D
ARM HOLDINGS/D
ASHMORE/D
AVIVA PLC/D
ASTRAZENECA/D
BAE SYSTEMS/D
BARCLAYS/D
BRIT AM TOBACC/D
BG GROUP/D
BR LAND CO/D
BHP BILLITON/D
BUNZL/D
BP/D
BURBERRY GRP/D
BT GROUP/D
CARNIVAL/D
CENTRICA/D
COMPASS GROUP/D
CAPITA PLC/D
CRODA INTL/D
CRH/D
DIAGEO/D
MAN GROUP/D
EVRAZ PLC/D
EXPERIAN/D
FRESNILLO/D
G4S/D
GKN/D
GLENCORE/D
GLAXOSMITHKLIN/D
HAMMERSON/D
HARGREAVES LS/D
HSBC HOLDINGS/D
ICAP PLC/D
IAG/D
INTERCONT HOTE/D
IMI PLC/D
IMPERIAL TOBAC/D
INTERTEK GROUP/D
ITV/D
JOHNSON MATTHE/D
KAZ MINERALS/D
KINGFISHER/D
LAND SECS GROU/D
LEGAL & GENERA/D
LLOYDS BNK GRP/D
MEGGITT PLC/D
MARKS & SP./D
MORRISON SUPMK/D
NATIONAL GRID/D
NEXT/D
OLD MUTUAL/D
PETROFAC/D
POLYMETAL INT/D
PRUDENTIAL/D
PEARSON/D
RECKIT BNCSR G/D
ROYAL BANK SCO/D
RDS A/D
RELX/D
ROYAL DTCH SHL/D
REXAM/D
RIO TINTO/D
ROLLS ROYCE PL/D
RANDGOLD RES./D
RSA INSRANCE G/D
SABMILLER/D
SAINSBURY(J)/D
SCHRODERS/D
SCHRODERS NV/D
SAGE GROUP/D
SHIRE/D
STANDARD LIFE/D
SMITHS GROUP/D
SMITH&NEPHEW/D
SERCO GROUP/D
SSE PLC/D
STANDRD CHART /D
SEVERN TRENT/D
TATE & LYLE/D
TULLOW OIL/D
TESCO/D
UNILEVER/D
UNITED UTIL GR/D
VEDANTA RES/D
VODAFONE GROUP/D
WEIR GROUP/D
WOLSELEY/D
WPP PLC/D
WHITBREAD/D
KENYA AIRWAYS/D

LAST
550.70
3299.00
1495.00
296.30
906.50
498.60
935.00
247.20
450.23
4201.00
448.80
245.70
3629.00
951.10
831.50
996.00
1769.00
332.65
1359.00
421.25
3426.00
227.70
1041.00
1197.00
2744.00
1739.00
1765.00
152.04
73.50
1059.00
595.50
230.60
265.00
88.49
1263.00
621.00
1207.00
497.63
455.50
586.50
2259.00
941.50
3396.00
2416.00
246.70
2470.00
80.15
357.30
1250.00
239.20
75.39
476.20
500.50
167.50
912.60
7561.50
188.10
769.00
571.00
1385.80
1112.00
5996.00
315.00
1551.00
1122.00
1555.00
525.50
2210.00
669.34
3836.00
398.40
3723.50
260.40
2783.00
2146.00
500.00
4513.73
386.50
1000.00
1148.00
101.60
1495.64
638.80
2188.00
587.00
172.10
182.30
2690.00
918.63
436.40
207.94
1153.66
3765.00
1370.00
4686.00
5.50

CLOSE
543.10
3205.00
1455.00
293.00
876.00
491.70
919.00
243.40
428.40
4129.50
436.90
239.00
3521.00
949.60
821.50
979.00
1739.00
326.20
1316.00
413.25
3312.00
222.80
1015.00
1190.00
2656.00
1700.00
1718.00
148.60
72.00
1031.00
596.50
227.40
255.50
80.25
1237.50
612.50
1179.00
485.55
447.00
570.00
2209.00
944.50
3334.00
2346.00
243.20
2410.00
72.70
347.90
1234.00
230.40
73.36
464.10
488.40
156.10
900.90
7470.00
182.10
762.50
558.00
1330.50
1099.00
5820.00
308.60
1537.00
1095.00
1543.00
517.00
2149.50
651.00
3844.00
391.90
3700.00
229.30
2716.00
2116.00
491.40
4431.00
375.50
994.50
1122.00
100.50
1437.00
624.10
2136.00
577.50
166.60
171.30
2603.00
905.50
440.30
204.35
1144.00
3656.00
1325.00
4577.00
5.65

NET.CHNG
7.60
94.00
40.00
3.30
30.50
6.90
16.00
3.80
21.80
71.50
11.90
6.70
108.00
1.50
10.00
17.00
30.00
6.45
43.00
8.00
114.00
4.90
26.00
7.00
88.00
39.00
47.00
3.80
1.50
28.00
-1.00
3.10
9.50
8.24
25.50
8.50
28.00
12.10
8.50
16.50
50.00
-3.00
62.00
70.00
3.50
60.00
7.45
9.40
16.00
8.80
2.03
12.10
12.10
11.40
11.70
90.00
6.00
6.50
13.00
55.50
13.00
176.00
6.40
14.00
27.00
12.00
8.50
60.50
18.50
-8.00
6.50
23.50
31.10
67.00
30.00
8.60
82.00
11.00
5.50
26.00
1.10
58.00
14.70
52.00
9.50
5.50
11.00
87.00
13.50
-3.90
3.60
10.00
109.00
45.00
109.00
-0.15

PCT.CHNG
1.40%
2.93%
2.75%
1.13%
3.48%
1.40%
1.74%
1.56%
5.09%
1.73%
2.72%
2.80%
3.07%
0.16%
1.22%
1.74%
1.73%
1.98%
3.27%
1.94%
3.44%
2.20%
2.56%
0.59%
3.31%
2.29%
2.74%
2.56%
2.08%
2.72%
-0.17%
1.36%
3.72%
10.27%
2.06%
1.39%
2.37%
2.49%
1.90%
2.89%
2.26%
-0.32%
1.86%
2.98%
1.44%
2.49%
10.25%
2.70%
1.30%
3.82%
2.77%
2.61%
2.48%
7.30%
1.30%
1.20%
3.29%
0.85%
2.33%
4.17%
1.18%
3.02%
2.07%
0.91%
2.47%
0.78%
1.64%
2.81%
2.84%
-0.21%
1.66%
0.64%
13.56%
2.47%
1.42%
1.75%
1.85%
2.93%
0.55%
2.32%
1.09%
4.04%
2.36%
2.43%
1.65%
3.30%
6.42%
3.34%
1.49%
-0.89%
1.76%
0.87%
2.98%
3.40%
2.38%
-2.65%

LI E

Thursday October 1, 2015 | BUSINESS DAILY

MOTIVATION

Feebies you can


use to keep you
employees happy
Page 28

27

SPORTS
Why ae English
teams stuggling in
Euope?
Page 31

MANAGEMENT

How cultual oientation aects business


RESEARCH European and

North American nations


value innovation and
challenging status quos
BUSINESS TALK
SCOTT BELLOWS

ipchirchir formed a payment solutions company in 2010 based in


Mombasa. He excitedly told clients
about Mombasa as an idyllic place to locate a
corporate headquarters, with its ancient history, mix of cultures and beautiful beaches,
all visible from his oce window.
In a few years, he expanded the business
to serve markets in East Africa to South
America and Southeast Asia.
As Kipchirchir grew his product oering,
he decided to set up a satellite product development oce to incorporate innovative new
sta from a new region. He narrowed down
his choices to Hyderabad in India, Silicon Valley in the US and Shanghai in China.
Each area oered positives and negatives. However, Kipchirchirs main criteria
entailed the creativity and innovation of
the region.
In his research, he found out that the
Global Innovation Index ranked China
29th in the world. India featured a dismal
81st in the ranking, only a few spaces ahead
of Kenyas 92nd place nish. All but one of
the top 10 most innovative countries hailed
from Europe and North America, with the
US at fth place.
Kipchirchir wondered why the manufacturing hub of the world and the programming capital of the globe featured so poorly
in the ranking.
When Bloomberg compiled its own innovation index, it layered in education systems
and amounts spent on research and development. The dierent type of indicators resulted in South Korea and Japan in the top
slots, with North American and European
nations taking most of the next 20 places.
Even Bloomberg ranked China poorly at
22nd and India did not even feature.
Kipchirchir contemplated the discrepancies among the economic powerhouses of the
world. While Japan and the US historically
generated more than 200,000 patents each
year according to the World Bank, China

Business leaders
must consider
a cultures
orientation
towards
business and
innvoation when
determining
satellite
expansion and
new growth
markets. FILE

Roman culture developed from Greek


had grown to more than 700,000 annually
led patents. The worlds second largest cultural underpinnings. Greek traditions
country, India, only led under 11,000 pat- valued the pursuit of knowledge, questioning ones surroundings and ones own existents each year.
So Kipchirchir eliminated India from ence and debating with ones neighbours.
consideration due to the lack of patents for
When the apostles traveled to the Greeksuch a large nation. Comparatively, Kenyans inuenced cities, they took advantage of
le around 120 patents each
the Greek culture of welcomyear. However, how could
ing foreign visitors to speak in
experts not consider China
their city centres and temples.
Some cultues
innovative?
Locals enjoyed gaining new pernatually
spectives, debating new ideas
Kipchirchir preferred
suppot
and changing their opinions.
Shanghai due to lower
The Apostle Paul in particular
set-up costs for a branch
ceativity
used Greek traditions to enter a
oce.
and celebate
city and speak and debate with
Friends in the hightech industry pointed Kipresidents.
innovation,
chirchir towards research
Usually only when the inwhile othes
that originated out of the
uence began to threaten the
University of Michigan and
value the status perceived political order city
that has been extensively
ocials would clamp down
quo
tested and expanded by
and impede Paul. Christianity
USIU. Some cultures natuinitially spread overtly all over
rally support creativity and celebrate inno- the Roman world until later covertly due
vation, while others value the status quo, to intense political persecution or scapeharmony and not rocking the boat.
goating.
Kipchirchir was stunned by the cultural
A religion could not have spread throughinuences on innovation and pulled the re- out the ancient Chinese Kingdoms in such
search to delved deeper.
a manner. Taoism and Confucianism develTake an anecdotal snippet from the major oped as the dominant religions of ancient
Western versus Eastern religions. Christi- China. Taoism places enormous emphasis
anity mainly spread during the time of the in harmony and balance. The concept of the
apostles due to the curiosity of Roman citi- Yin and Yang, with good and evil coexisting
zens throughout the Mediterranean.
in equilibrium, has featured prominently

on the South Korean ag and comes from


Taoism. Confucianism taught an attitude of
respect, especially for ones parents, teachers,
and elders. Ancient Chinese Kings prized
Confucianism and Taoism because the harmony encouraged citizens to accept the realities of life and focus on inward peace and
oneness with ones surroundings.
Rulers felt that such principles would
quell any temptations to dissent and threaten the political structures of the time.
The concepts became even more important as socio-political wisdom. So dynasties
themselves spread the religions as a means
of keeping order.
Researcher Richard Nisbett uncovered
that a cultures innovation orientation largely stems from its ancient economic activity.
Societies traditionally involved in shing
developed more truth-obsessed and curious
cultures while agrarian farming-founded
societies valued harmony and balance.
The shing societies did not need their
neighbours assistance to conduct their activities, while farming societies required help
during planting, harvest, drought, insect infestations, among other eventualities.
So Greece with its shing economy encouraged debate while the Chinese kingdoms with their farming economies fostered
accord and balance.

Innovation
Through centuries of migration and cultural
export, European, North American, secular
Middle Eastern and Australasian nations
value innovation, challenging status quos
and creativity in their education systems,
workplaces and families. East Asian and
Southeast Asian countries, on the other
hand, incorporate respect, harmony, decency and togetherness.
New technologies historically originate
more in the former but become copied or
perfected and enhanced in the latter.
Business leaders must consider a cultures orientation towards dierent desirable attributes when determining satellite
expansion and new growth markets instead
of merely looking into statistics.
Read about Kenyas cultural business
orientation at: http://www.businessdaily
africa.com/How-tribal-culture-inuences-business/-/539444/1799714/-/yutiei//index.html
Prof Scott is the director of the New
Economy
Venture
Accelerator
at
USIUs Chandaria School of Business,
www.ScottProfessor.com, and may be
reached on: info@scottprofessor.com or
follow on Twitter: @ScottProfessor

Look for the cutting-edge Innovation and Creativity Forum coming up on October 30. In next weeks edition of Business Talk, we explore Innovation Success. Read current and prior Business Talk articles on the Business Dailys website and www.usiu.ac.ke/blog/businessdaily .

28

BUSINESS DAILY | Thursday October 1, 2015

Life: MANAGEMENT

. Negotiate discounts with local


merchants for your employees.
Hotels, retail stores, restaurants and
amusement parks may offer discounts
on their various attractions, including
lodging and food, through corporate
customer programmes.
Dont forget to offer employees free or
discounted prices on your own company
products and services.

. Let employees buy excess inventory from your business at


a signicant discount via sample sales or employee auctions.
Arrange these purchases in conjunction with regularly scheduled
companywide yard sales for employees to buy and sell their personal
belongings.

. How about an interest-free computer


loan programme?
Making it easier for employees to buy
computers for their personal use increases
the technical productivity of employees on
the job. The company buys the system, allows
the employee to take it home, and deducts the
payments from his or her paycheque.

Feebies that
will keep you
employees happy

. Ask a local dry cleaner for


free pickup and delivery of
your employees clothes.
Or ask a garage for free transportation to and from work for employees having their cars serviced
there. Many businesses are willing
to provide this service to capture
and keep new customers.

here are plenty of benets that


will cost your company little or
nothing but reap huge rewards
in terms of employee satisfaction and
loyalty. Consider these ideas:

. Offer free lunchtime seminars to employees. Healthcare workers, nancial


planners, safety experts, lawyers
and other professionals will often
offer their speaking services at
no charge. Education is benecial
for both your employees and your
business.

-ENTREPRENEUR

. Offer a prepaid legal services plan administered


through payroll but paid for by the employee.
Like insurance, the purpose of the prepaid legal
service is to provide protection against the emotional
and nancial stress of an employees legal problems. Such
services include phone consultations regarding personal
or business-related legal matters, contract and document
review, preparation of wills, legal representation in cases
involving motor vehicle violations, trial defense services,
and audit legal services.

. Offer supplemental insurance plans that are administered through payroll but are
paid for by the employee.
Carriers of health, life, car and accident insurance typically offer these
plans at a lower rate to employers,
so everybody benets.

Keep the zeal of a rookie no matter how high you climb

n the Drake song 0 to 100, the obvious theme is reaching a point of


success at a fast pace. A few lines
later, theres a lyric, Im the rookie
and the vet.
Its a great line. Imagine possessing
the best qualities of the enthusiastic
up-and-comer with the wisdom and
experience of an industry lifer. The
key to success in life and business is to
combine the best qualities of both the
rookie and the veteran. Heres how:
The rookie approaches with
the beginners mind. This is an at-

titude of openness, eagerness and lack


of preconceptions even when studying
a subject at an advanced level. Rookies are always looking for information
and experiences that will help them
accelerate their professional development. They are the antithesis of the
know it all.
The rookie is willing to pay
their dues. The enthusiasm that
comes with being the newcomer
usually partners with a bring it on
approach. Unfortunately, for many
experienced leaders, cynicism and

complacency too often replace that


unbridled enthusiasm. As a veteran,
revisit the pay your dues mentality. Youll be amazed at how much
you can accomplish with an attitude
change.
A veteran uses accumulated
knowledge to make strategic decisions. The great advantage of experience is having a history to draw upon.
Eectively using collective knowledge
from the past and relating it to current dilemmas is a veterans play not
available to the rookie.

A veteran keeps cool under


pressure. Since rookies are encountering most experiences for the
rst time, its easy to let the imagination run to the worst-case scenario,
which is hardly productive. The veteran shouldnt be rattled by a fork in
the road. Rather, he or she can use
experience to focus on whats really
important making the right decision and following up with corrective action.
A veteran knows whom to ask
for advice. For the rookie, knowing

where to go for answers can be half


the battle but deciding whom to
trust is another matter. On the other
hand, an experienced executive knows
where to go and more importantly,
whose advice to weigh more heavily
than others.
Aim to strike a balance between the
zeal of a newcomer and the savviness
of a seasoned player. If you can harness the best traits of both the rookie
and the vet, youll reach MVP (most
valuable professional) status.
- ENTREPRENEUR

Thursday October 1, 2015 | BUSINESS DAILY

29

Life:
MARKETING
Life:
MANAGEMENT
MARKET Worrying number of experienced salespeople have become innecient

BottomLine

Dont give up sending your pitch to journalists, especially if you


know its a great story idea. FILE

Ways to get journalists to


notice your media pitch
Lack of requisite support structures, rejection by buyers and lack of a proper foundation affect the growth of many sales people. FILE

Reasons many salespeople ae


not gowing in the pofession

ouve written what you think is a great media pitch.


Youve done your research, written and rewritten, read
and re-read. You just know that this is going to score
a win for the client.
You send it out, expecting the best, but all you hear are
crickets chirping. How can this happen?
Dont give up, especially if you know its a great story idea.
There are things you can do besides letting your failed pitch
attempt slide into the trash bin.
When youve sent your pitch and theres no response, here
are six options to redeem yourself:

1. Re-send the pitch.

SALES PITCH
JOHN KAGECHE

ost salespeople fall on the


wayside and many grow
into ineciency. This is
the tragedy of the sales profession.
A worrying number of experienced
salespeople arent really growing in
experience. Their 10 years experience
is in fact one year experience ten times.
It is a matter of duration not merit.
This tragedy is aggravated by the
fact that the last decade has fundamentally shifted the sales landscape.
Technology is rapidly shifting what
was for a long time a one way street
into a dual carriageway. Buyers have
greater access to information and
options beyond the average salesperson.
What is the source of this tragedy?
First, is it is foundation the environment that shapes our formative years.
Education, society and upbringing
prepare us for a desk job. As such, the
baseline for growth in employment
is from zero because a footing exists,
plus the organisation structure supports it.
On the other hand, how many
teachers, role models or parents tell
their mentees to study hard and be
salespeople? Close to nil. Many people,
therefore, are not born salespeople but
have it thrust upon them. Small wonder then that only a handful achieve
greatness.

Selling, on the other hand, starts around at the novices struggling to get
from below zero and reaching zero is to zero and feels that he has arrived. He
a feat in itself. To successfully reach stops learning, developing and growthe zero base line, sellers must rst ing. He gets sloppy and inadvertently
unlearn what they learned for close to breaks his prospecting pattern; he
two decades and in an environment wings his presentations and gets too
that treats them as outcasts.
casual with buyers.
For a moment it works; the momenLacking the requisite support
structures (for example, a competent tum he has built in the past year carries
sales manager) makes it a losing bat- him forward. Soon though, he realises
he has been decelerating. What was
tle for many.
Secondly, the nature of selling once a steady gush is reduced to spurts.
makes things hard. Unlike the desk This becomes his new normal.
It is especially dicult to get out
job where work comes to you, selling
of this predicament if the
requires that we
salesperson lacks a selsh
are always looking
for work. To thrive,
drive
to keep him going; not
Even with
the search must remerely achieving targets for
apidly changing the sake of it (which incidenmain never ending.
Its the very lifeline
tally is unsustainable as a
technology
of the role.
motivation tool) but a burneplacing many
ing desire for, say, recogniSalespeople
jobs, the one
tion, helping others, getting
have to learn to rea degree or keeping up with
main aoat in the
pofession that
the Joneses.
oods of internal
is still gowing is
Interestingly, even those
pressure for numwith desk jobs in time nd
bers and external
sales
it necessary to acquire sales
rejection by buyskills for their side hustles.
ers. Rejection is
painful and it torpedoes many sales Globally, even with rapidly changing
boats. They rapidly sink and the cap- technology replacing many jobs, the
tain jumps ship.
one profession that is still growing
Sometimes the captain stays on is sales. Paradoxically, the salesperboard because he is seasoned in son isnt.
Arresting this anomaly is a joint
steering clear o the waters. He thus
remains experienced in his comfort eort that pools together the saleszone. Naturally, growth is stunted.
persons attitude and enabling supAnother reason why many sales- port structures.
people grow into ineciency is their
attitude. Having grown a year past base
Kageche is lead facilitator, Lend
line, the sales person wallows in the Me Your Ears, a sales training and
miasma of the progressive pats on the development rm. Email:lendmeyo
back he has been receiving. He looks urears@consultant.com

Yes, its okey to send it again. Sometimes, the journalist simply


didnt see it the rst time around. If theyre like most reporters, their inbox is full to the brim with media pitches.
When you re-send it, add a note to say, Just wanted to follow up on this. Please let me know if you have any questions or
need anything further. Always thank them for their time.

2. Rewrite the pitch and send again.


If youve sent the pitch and followed up and still havent heard
anything, you might need to rewrite it. Take a careful look
at the subject line and the pitch itself to see if you could take
another approach.

3. Try social media.


Youve tried email, but thats not working. Contact the reporter
through social media.
If youre already following them and have reached out this
way before, you have an established relationship. If not, its
still perfectly acceptable to try this method. See what outlets
theyre active on.

4. Pick up the phone.


Yes, its taboo but it can be eective when used strategically.
Rehearse your message prior to calling. Keep it brief and
be sure to include your number.

5. Look for another media outlet.


Youve created the perfect pitch for what you thought was the
perfect outlet, but it wasnt a t.
Why not choose another outlet? This may require rewriting the pitch to be a t for that reporter or publication, but it
could pay o if you get a response.

6. Figure out another way to get the news out.


Youve tried creating a spot-on pitch and attempted to get
it in front of what you thought was the perfect target. Youve
followed up a couple of ways, and still received no response.
Now what? Turn to self-publishing if your news or story still
needs to get out. There are a number of options, including
blog posts, LinkedIn, contributed articles, speaking abstracts
and infographics.
- ENTREPRENEUR

30

BUSINESS DAILY | Thursday October 1, 2015

Life: MARKETING

Tied and tue tactics to help


you set you ve-yea goals
W
here do you see yourself in ve
years? Will you be a workaholic,
living the simple life or will you
be a successful entrepreneur with a million-dollar business?
There is no substitute for classic goal setting. Here are a few tried-and-true tactics
to propel your business to success.

Evaluate your goals regularly


Goal setting is a process of discovery as
much as it is a way to get the job done.
As you monitor your goals, ask yourself:
Does this goal matter?
Being a leader means nding the
path, explains author Kevin Hall in his
book, Aspire: Discovering Your Purpose
through the Power of Words. But before
you can help someone else nd their path,
you must know yours.
By evaluating your goals regularly, you
can make sure to focus on whats important

10

11

13

12

15

14

16

17

18

19

21

Review your goals every day


Goal setting is like getting on the scale
youll see greater success if you do it every
morning. As entrepreneurs, dreaming
big is standard practice. The distinguishing factor between the big dreamers and
the big doers is that the doers take action.
Sometimes our biggest life goals seem
so overwhelming. We rarely see them as
a series of small, achievable tasks, writes
Jack Caneld in his book, The Success Principles: How to Get from Where You Are to
Where You Want to Be.But in reality, breaking down a large goal into smaller tasks
and accomplishing them one at a time is
exactly how any big goal gets achieved.
Behaviour science expert and writer
James Clear calls these smaller goals
systems. If youre a coach, he explains,
your goal is to win a championship. Your
system is what your team does at practice
each day. If youre an entrepreneur, your
goal is to build a million-dollar business.
Your system is your sales and marketing
process.

TIMES CROSSWORD 24,962


1

By breaking down your long-term goals into smaller daily tasks, evaluating your plans regularly and being adaptable, you will enjoy the benets of your efforts. FILE
to you. For example, if your goal is to run
10 miles a day but youre starting to have
knee problems, then you may ask yourself
if your goal is really to run (as an end in itself) or to enjoy a healthier lifestyle. This
kind of exibility will get you what you really want and may save you from having
surgery down the road.

Zig zag your way to the top


While the idea of racing toward your
goals at breakneck speed is seductive,
there are unexpected obstacles that inevitably complicate any business.
The road to success is never a straight
line, writes Rich Christiansen in The
Zig Zag Principle. The diversions and
detours I had often found so frustrat-

ing had actually created more stable and


solid businesses. On the other hand and
without exception each time I had raced
directly at a target with high velocity, I
had failed.
Zigzagging requires you to be nimble
and exible and to take advantage of multiple opportunities. When a challenge comes
along, consider your goal and whether it
would be best to forge directly ahead or to
pivot toward a dierent, short-term goal. It
may not be the straightest path, but being
adaptable is the clearest path to success.
Some of the most successful entrepreneurs have achieved their success in part
by practicing disciplined goal setting.
- ENTREPRENEUR

TIMES 24,961

Scientists look fo biofuel clue in panda poo


Researchers are examining the excrement of
giant pandas to try to understand how they can digest
tough bamboo, hoping for
clues on how to develop new
generations of biofuel.
The genetic make up of endangered pandas is that of
a carnivore but the animals
have adapted to a diet consisting almost exclusively of
bamboo.
While a few scientic studies
have looked into the digestive tract of the panda, the researchers say their
study is the rst to focus on the microorgan-

isms in

the animals gut.


We can look for new enzymes
which could be used to degrade
tough biomass, said Korneel
Rabaey, professor for biochemical and microbial technology
at Ghent University, standing
outside the giant panda enclosure at the Pairi Daiza zoo in
Belgium.
The results of the study may
point to new, cheaper, ways
to produce so-called second
generation biofuels made from
plants and biomass not destined for consumption such as corn stalks.

H O C U S
S U S T A IN E D
H
A
U
U
O
P
U
U
A B L E
T
U
M
T
E
P
A
P A R
I L
I F
E
F
E
A S C E R T A IN E D
R Y E
R
E
I L
E
I S
V E N D E T T A
N U T T E R
K
E
S
V
M
I
T R IF L E
E A U D E N IL
L
M
S
R
N
P
T
O A R
Z A R A T H U S T R A
A
R
S
A
L
I
S
F IT T IN G
C O G N A T E
E
D
O
F
N
L
H
H
T R A IN B A N D
E A T U P

SUDOKU 089

22

23

24

25

26

27

Across
1 Means to help engineers joining
training programme (8)
5 French city, mostly chilly when spring
begins (6)
9 Computing trouble? Start off showing
some common sense (8)
10 Dog collar returned and put away
(4,2)
12 Rhubarb ready for picking after very
little time (5)
13 He plays rugby game, then he soaks in
water and departs (5,4)
14 In the event, tip-top notion will need
further development (5-2-5)
18 Oscars off to the sea, taking a spin in
a motor to Lands End (7,5)
21 Protective garments formerly,
covering legs? Quite the opposite (9)
23 Bit of a smooth operator? I wish! (5)
24 High-ier beginning to inquire about
careers? Hes put off (6)
25 Recalled artist at Christmas party
being a famous painter (8)
26 Old coin with head of the queen?
Right (6)
27 Peacekeepers ultimately want
number set free (8)

20

Down
1 Agreed southern town is off-limits (6)
2 Left wing agent given hearing (6)
3 Cuckoo at top of mast? (2,3,4)
4 Force tax to come down on delivery
truck? Its gone up (8,4)
6 Lecture means nothing to class (5)
7 Refer to new school thats set up as
very attractive (8)
8 Try a dip I concocted in haste (8)
11 Coin the wife banked, back from
Cornwall? (5-7)
15 Type of sh brill served around
noon, maybe (9)
16 Given slap, unpleasant person full of
discomfort (8)
17 Conserve ocean, having reduced
pollution (8)
19 Who might give order to preach? (6)
20 Passion is stronger in EastEnders
broadcast (6)
22 Female physicians stroke of luck (5)

SUDOKU PUZZLE

090

How to play
Fill the grid so that every row, every column and every 3x3 box
contains 1-9.
You solve the puzzle with reasoning and logic and not
mathematical ability

Thursday October 1, 2015 | BUSINESS DAILY

31

Why ae English teams stuggling in Euope?


FOOTBALL Chelsea and Arsenal losses on Tuesday continued Premier League clubs poor performance

rsenal and Chelsea slipped to defeat on


another night of Champions League embarrassment for the English elite - grim
statistics lying around their feet like rubble, proof
that the glory days are over.
The Premier Leagues nest have so far played
six group games in Europes biggest tournament
and ve have ended in defeat. Manchester City and
Manchester United played their second games
last night having both lost their rst.

How the mighty have fallen.


In 24 group games last season the Premier
Leagues four representatives - substitute Liverpool for Manchester United - lost only six games.
And in the Champions League years between
2003-04 to 2011-12, the most English defeats in a
Champions League group stage was ve - a
gure already equalled this season.

So where has it all gone wrong? And is this a


sign of things to come?
From 2005 onwards, when Liverpool famously
came from three goals down to beat AC Milan on
penalties in Istanbul, the power of the Premier
League cast a giant shadow over the Champions
League - now the aura has been stripped away and
those who once ruled are reduced to the ranks.
Arsenal were defeated nalists against Barcelona in Paris in 2006 and even though AC Milan
got revenge on Liverpool in Athens the following
year, Manchester United and Chelsea were also
in the last four.
Manchester United won an all-Premier League
nal against Chelsea in Moscow in 2008, with Liverpool also semi-nalists, while both those nalists were in the semis again, along with Arsenal,
in the following year before Sir Alex Fergusons
side lost to Barcelona in Rome.
Slowly but surely, however, the Champions
League has since been a tale of diminishing returns for the Premier League, overtaken not just
by La Liga giants Real Madrid and Barcelona, but
also Bayern Munich and more besides.
United reached the nal in 2011, while Chelsea
won the Champions League almost freakishly
against Bayern in their own Allianz Arena a
year later - but there was no Premier League
presence in the last eight in 2013 and 2015, with
only Chelsea reaching the semi-nal in the intervening year.
Whereas once a meeting with Premier League
clubs may have been daunting, it is
now greeted with relish and not only
the big names fancy their chances.

Arsenal have been unseated by unfancied


Croatians Dinamo Zagreb and Olympiakos so far
this season, while Chelsea have been beaten by
FC Porto, Manchester United by PSV Eindhoven
and Manchester City by Juventus.
Past reputations count for nothing. The Gunners may be most embarrassed of all. They are
bottom of Group F and look in serious trouble
before they have even faced their two toughest
games against Bayern Munich.
Olympiakos arrived at Arsenal on the back
of run of 12 straight losses in England and had
never won a Champions League game on this
soil. The record has now been set straight.
The Premier League can bill itself as the best
in the world and boasted the richest summer
transfer window in history in 2015, with outlay
passing 870m - the total calendar year spending also soared past 1bn for the rst time - but it
seems this is very much a case of The Emperors
New Clothes for their European rivals.

Where does the world-class talent go?


The Premier League might be awash with
cash but are they getting better? Can they attract
world-class talent? Cristiano Ronaldo, Sergio Ramos, Karim Benzema etc were linked with moves
to English clubs but none arrived.
Did Ronaldos 80 million move from Manchester United to Real Madrid days after their
2009 Champions League nal loss to Barcelona
signal the beginning of the end for the Premier
Leagues great European era?
Since then it has been accepted that the greatest talent lies in Spain with Ronaldo at Real and
Lionel Messi at Barcelona - while another true,
albeit awed, superstar left the Premier League
when Luis Suarez left Liverpool to move to the Nou
Camp for 75 million in summer 2014.
-BBC

Is the Premier League taking its toll?


So unpredictable that they cannot rest their
best players for Europe - but then again, do Barca really rest players regularly? One signicant
transfer deal that did not happen may hint at why
life in the Champions League is getting tougher
for those who want to exercise European as well
as domestic domination. The landscape is shifting. The Premier League may not be the best
league in the world but it is arguably the most
competitive - and this may take its
toll when it comes to Champions
League time.

Chelsea manager Jose Mourinho


during the match between FC Porto
and Chelsea at Estadio Do Dragao,
Porto, Portugal , on Tuesday. AFP

Arsenal manager Arsene Wenger


during the between Arsenal and
Olympiakos at The Emirates Stadium
in London on Tuesday. AFP

SPORTS BRIEFING
Injury-plagued NBA player
undergoes surgery again
Chicago Bulls guard Derrick Rose, the injury-nagged former NBA Most Valuable Player, suffered a left orbital fracture in practice and was done for surgery yesterday.
Rose was struck in the face by an elbow
during a pre-season workout and taken
to a nearby hospital where doctors diagnosed the orbital break.
A timetable for Roses return to the Bulls
will be determined after the operation.
Rose has been hindered by a series of knee
injuries since winning the 2011 NBA Most
Valuable Player Award. Since the start of
the 2011-12 season, Rose has played in

only 100 regular season games. Rose, 26,


tore a left knee ligament in the 2012 NBA
playoffs and missed the entire 2012-13
season.
He suffered a right knee injury in November of 2013 that caused him to miss the remainder of the 2013-14 campaign.
Last season, Rose missed 31 games, some
of them due to an operation on his right
knee in February.
Rose helped the US squad win the World
Championships in 2010 and 2014. New
Bulls coach Fred Hoiberg already lost Mike
Dunleavy Jnr underwent back surgery last
week and is expected to miss eight to 10
weeks.

Tom Brady free to play


after court adjourns case
New England Patriots quarterback Tom Brady
is all but certain to remain free to play for the
rest of the season after a court ruled on Tuesday that the NFLs appeal in the Deategate
case would not be heard before February.
The court granted a request by the league and
players union for an expedited hearing, with
the league ordered to le a brief by October
26, with Bradys attorneys to reply by December 7 and the league having until December
21 to respond.
The appeal would be heard the week of February 1 with the Super Bowl set for February 7 at
the new home stadium of the San Francisco

49ers. The timing virtually ensures Brady


would not face a ban this season even if the
ruling in the controversy about underinated
footballs that has haunted the Patriots since
last years American Conference nal.
NFL commissioner Roger Goodell looked into
the controversy of balls found to be below NFL
air pressure minimums and banned Brady for
the rst four games of this season.
Brady appealed the ban to Goodell and he upheld his punishment in July. Brady then took
the matter to US District Court and earlier
this month had the suspension thrown out
by judge Richard Berman a verdict the
New England Patriots quarterback Tom
league has now pushed to the US Court of
Brady. REUTERS
Appeals.

32

BUSINESS DAILY | Thursday October 1, 2015


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Army seizes coup barracks


Burkina Fasos interim government says
the army has retaken the barracks of the
presidential guard that staged a coup earlier this month. Ofcials announced the
takeover in a televised statement. It is not
clear if there were any casualties. Earlier,
a BBC correspondent in the capital Ouagadougou said shots and explosions were
heard and smoke seen rising from the barracks. The army accuses the presidential
guard of not laying down arms after the
coup. Coup leader Gen Gilbert Diendere,
whose whereabouts are still unknown,
had called on the elite force to surrender
to avoid a bloodbath.
He told the AFP news agency that he
feared there had been many deaths as
the barracks were seized.

The army had surrounded the barracks


all day and army spokesman Capt Guy
Herve Ye said artillery was red at the
complex before soldiers moved in and
took control.

Islamist charged at ICC


A suspected Islamist militant accused of
destroying cultural sites in Timbuktu is due
to appear before the International Criminal
Court (ICC), in the rst case of its kind.

Ahmad al Faqi al-Mahdi is suspected of


war crimes over the destruction of nine
mausoleums and a mosque in the ancient
Malian city in 2012.
He was handed over by Niger after the ICC
issued a warrant for his arrest. Islamists
occupied the city until they were ousted
by French forces in 2013.
In a statement, the ICC said the suspect
would be informed of the charges
against him during yesterdays initial
hearing.

CAR capital in lockdown


The capital of the Central African
Republic is under a night-time curfew
after days of intense ghting between
Christian and Muslim groups.
Fierce clashes between the two groups

2,059.77

22,477,900

26,549,200

1,427,981,299

602,007,080

1,488,650,000

301,650,000

TOTAL SHARES TRADED


EQUITY TURNOVER IN SH
BONDS TURNOVER

erupted after the killing of a Muslim taxi


driver in Bangui on Saturday.
At least 36 people have died in the
violence, and the UN says it has forced
nearly 30,000 people to ee.
We fear that the violence were seeing
in Bangui is a return to the dark days of
late 2013 and 2014, when thousands
were killed and tens of thousands had
to ee their homes, said Leo Hobbs, a
spokesman for the UNs refugee agency.

PREVIOUS

2,063.64

TOTAL DEALS (BONDS)

25

14

TOTAL DEALS (EQUITY)

1,440

1,556

NSE 20 SHARE INDEX

4,173.52

4,189.22

NSE ALL SHARE INDEX

146.92

146.86

PINEBRIDGE INDEX

768.88

773.94

FTSE NSE KENYA 15 INDEX

192.96

193.2

FTSE NSE KENYA 25 INDEX

192.72

193.13

FTSE NSE KENYA BOND INDEX


FTSE ASEA PAN AFRICAN INDEX

90.52

90.52

1,081.22

1,088.32

HE SAID
Eort only fully
releases its reward
after a person
refuses to quit.

allegation the country has denied.


A defence lawyer told reporters
outside the court that the accused
were innocent men who had been
framed and said they would challenge
yesterdays order in the high court.

Bombers get death sentence


A court in the western Indian city of Mumbai has sentenced ve people to death
over the 2006 serial bombings of commuter trains.
Seven of the 12 men convicted for the
blasts have been given life sentences.
Seven blasts ripped through trains in the
evening rush hour on 11 July 2006, killing
189 people and injuring more than 800.
The attack was blamed on Islamic
militants backed by Pakistan, an

Environment
NEWS

US state executes woman


A woman in the US state of Georgia has
been executed despite a number of lastditch appeals, including one by the Pope,
to try to block her execution.
Kelly Gissendaner (pictured), 47, was the
rst woman put to death in the southern
US state in 70 years. Lawyers led at least
three appeals with the US Supreme Court
to try to delay the sentence hours before
she died. Gissendaner planned but did not
carry out her husbands murder in 1997.
Her former lover, Gregory Owen, who

killed Douglas
Gissendaner,
was given life
in prison as
part of a plea
bargain. Pope
Francis, who
was recently on
a US tour, urged
the review board to reconsider. But on
Tuesday afternoon, the board announced it
was not granting clemency.

Russia starts Syria air strikes


Russia appears to have begun carrying out
air strikes in Syria against opponents of
President Bashar al-Assad, a US defence
ofcial says. The ofcial said the strikes
reportedly came in the area of the western
city of Homs. Washington was informed

-Napoleon Hill
American Author
1883-1970

in advance that they were about to take


place. The development came amid reports that President Assad had formally
requested Russian military support. Reports from Russia say the upper house of
the Russian parliament granted President
Vladimir Putin approval to deploy the Russian air force in Syria.

Migrant killed on rail tracks


A migrant has been killed on the Eurotunnel tracks trying to make it to the UK.
The man is the 13th migrant to die trying
to get to Britain since late June, and the
fourth in 10 days. The mans nationality is
not conrmed, although the BBC has been
told by people in the migrant camps in Calais he was Eritrean. A spokesman for Eurotunnel said a man was found unconscious
beside the tracks on the French side.

Rare tree seeds germinated

N Zealand plans marine reserve

Data reveals water on Mars

UK scientists have successfully germinated


seeds from the critically endangered Japanese
Birch, a species that has just 21 known trees
remaining.
The seeds were collected last year during an
expedition to a remote location in mountains
near Tokyo. Experts suggest that the remaining wild population of Betula chichibuensis is
too small to sustain itself unaided.

New Zealand has revealed plans to turn an


area of the South Pacific about the size of
France into a marine reserve. The Kermadec
Ocean Sanctuary lies north of the mainland
and includes a chain of islands and underwater
volcanoes. Prime Minister John Key made the
announcement at the United Nations General
Assembly in New York. Fishing and mining will
be banned in the protected area.

Scientists think they can now tie dark streaks


seen on the surface of Mars to periodic flows of
liquid water. Data from a Nasa satellite shows
the features, which appear on slopes, to be associated with salt deposits. Crucially, such salts
could alter the freezing and vaporisation points
of water in Marss sparse air, keeping it in a fluid
state long enough to move. The findings were
reported in the journal Nature Geoscience.

Download the NMG PLAY app on Google Play


and scan this QR code with your smart phone
for pictures, videos and more stories

WEATHER
High 25C (78F) Low 140C (560F)

Nairobi: 3-day forecast


Thu
Fri
Sat

Mostly Sunny
Mostly Sunny
Mostly Sunny

High

Low

23C

14C

25C

15C

25C

14C

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