Radar Screen

Page 3

Governor Kidero has his work cut out for him

Ideas & Debate
Page 9

China’s ‘unconditional aid’ for No need to attend extra African countries a big myth school to be successful
Page 27


NO. 1551


WWW.BDAFRICA.COM KSH50 | TZ SH 1,700 | UGSH2,700 | RFr900

Investo≥s ea≥n millions f≥om owne≥ship of NSE-listed fi≥ms
Stock rally in the past six months also boosts paper billionaires’ worth by large margins

Tou≥ism leads ≥ace fo≥ peace dividend afte≥ a calm vote
The tourism industry may be the swift winner from the election of Uhuru Kenyatta, the owner of hotels and a vast business empire, as East Africa’s biggest economy seeks to benefit from a vote that avoided a re-run of bloodshed of five years ago. Tourism is a vital sector for the nation of more than 40 million people and was one of the worst hit after a disputed presidential poll in December 2007 led to weeks of bloodletting, scaring away investors and tourists by the planeload. This time, the battle over who won the vote was fought by lawyers instead of armed thugs on the streets. A reformed Judiciary that reviewed the case commands more respect than it ever did, a victory for the rule of law that could also lift business confidence. Besides seeking more visitors, Kenya wants oil and gas investment to develop hydrocarbon discoveries, funds for a major new port in Lamu and other infrastructure, and investors to boost the nation’s position as a regional manufacturing hub. “Kenyan investment plans previously put on hold because of election-related uncertainty are now likely to be realised,” said Standard Chartered economist Razia Khan. Foreign investment “may take a while longer to see a meaningful increase PEACE GAINS, Page 4»









James Mwangi Sunil Shah The Ndegwas Bharat Thakrar Gideon Muriuki Benson Wairegi Peter Munga


159.5 107.3 135.7 31 30 25 28




Dividends declared for 2012 financial year
Equity Bank KCB NIC Bank Scangroup Co-op Bank Britam Equity Bank

A group of billionaire investors have entered a dividend windfall season riding on last year’s record profits by companies listed on the Nairobi Securities Exchange (NSE) companies, the latest financial reports indicate. High-level profitability, the highest since the 2008 global financial crisis, have seen many of the blue chip companies raise their dividend payouts, adding millions of shillings to the take-home of top shareholders. The club of shareholders set to rake in millions of

Dividend (Sh mn)


shillings from their investments in the listed firms

includes Sunil Shah, Equity Bank chairman Peter Munga and the family of former Central Bank of Kenya governor Phillip Ndegwa. The list also includes a select group of CEOs with big stakes in companies they manage: Bharat Thakrar of Scangroup, Equity Bank’s James Mwangi, Gideon Muriuki of Co-op Bank and Benson Wairegi of British American Investment Company (Britak). Besides the dividend harvest, these investors have seen their paper wealth rise significantly as share prices rose by double digits in the past six months. “There has been a sig- DIVIDEND PAYOUTS, Page 4»



Rare fish species dwindle as human activities take toll in Nile basin
Pages 12-13 »


UN report sees 6pc growth for E. Africa
Economic growth in East Africa is expected to remain among the fastest in Africa this year aided by natural resource discoveries, improved agricultural performance, and economic diversification. Page 5»

Helios to maintain stake in Equity Bank
Private equity firm Helios EB Investors has made a U-turn over the pledge to reduce its stake in Equity Bank and committed to remain the largest shareholder in the lender on improved returns. Page 8»

Unaitas shelves plans EABL stock to come to list at Nairobi bourse under pressure
Unaitas Sacco has announced that it will proceed with its ambitious expansion plan even as it ditched the proposal to list on the Nairobi Securities Exchange.
Page 19»

East African Breweries Limited may be currently overvalued by more than Sh100 a share, taking into account the recent financial results and the expectations for this year, analysts say.
Page 20»


BUSINESS DAILY | Tuesday April 2, 2013


Elect≥icity cost to go up on inc≥eased fuel, fo≥ex cha≥ges
ECONOMY Long term picture not enticing

Flood chaos

given Kenya Power’s push for tariff review
The increase in electricity costs contributed to a 0.96 per cent rise in Electricity consumers face higher utility costs for the average Kenyan bills for the month of March followhousehold in March, according to ing increase in fuel prices and a higher data released by the Kenya Bureau of forex charge. Statistics (KNBS). The forex charge went up to Sh1.69 “Housing, water, electricity, gas per KWh in March from February’s and other fuels’ index went up by Sh1.04, while the fuel adjustment cost 0.96 per cent between February and went up to Sh6.21 from Sh5.38. March 2013. This increase was mainly This means an increase in the cost caused by higher costs of electricity, of electricity for 50 units or KWh from kerosene, liquefied petroleum gas an average of Sh564 in February to (LPG) and other cooking fuels,” said KNBS in the monthly Consumer Price Sh638 in March, representing a 13.2 Index and Inflation Rate report for per cent increase. March. For those consuming an average Despite the shortof 200 units per month, the cost of power went up term reprieve expectfrom Sh3,042 to Sh3,338 ed with the rainfall, Housing, wate≥, the long-term picture in March. The cost of fuel was elect≥icity, gas and is less enticing for industries and home revised upwards by the othe≥ fuels’ index Energy Regulatory Comusers with more went up by 0.96 pe≥ thermal generators mission (ERC) on March 14, with the price of diecoming on-stream cent sel going up by Sh2.27 a and Kenya Power litre. This was attributed KENYA BUREAU OF STATISTICS REPORT pushing for a tariff to a weak shilling during review. Under the proposthe December/January als, domestic consumers of less than imports window, coupled with an 50 units per month would pay a fixed increase in crude oil prices. The monthly cost of electricity had charge of Sh200, up from the current reduced marginally since December, Sh120, while the cost of every unit following optimum power generation would go up from Sh2 to Sh5.1. from hydro sources, which reduced Those consuming between 50 and 1,500 units would see their energy reliance on thermal electricity gencharge rise to Sh11.4 from the cureration. Kenya’s interconnected installed rent Sh8.1 per unit, while for small commercial users, the energy charge capacity stood at 1,672MW in Januwould rise from Sh8.96 to Sh13.66 per ary, of which 120MW is from the exunit. Another upward review of the pensive emergency thermal power. A further 1,248MW is projected to be fixed rate would be effected on July 1 to injected into the grid by 2015, from Sh250 and later to Sh300 in 2015. both state-owned and independent thermal power producers. cmwaniki@ke.nationmedia.com

Ms Jane Awuor and her co-wife Jane Achieng’ ponder their next move after flood waters swept through their home in Kojiem village in Nyando. Deaths and loss of property have been reported as people are displaced by the rains pounding most parts of the country. TOM OTIENO


Vandalism leaves Nai≥obi ≥esidents in the da≥k

Power supplies for consumers in Nairobi were cut off during Easter following an outage on the pre-paid electricity vending system. Kenya Power said the fault that left households and businesses with losses, was caused by vandalism on its cable system in the city. “The problem affected data and communication connections hosted by Safaricom. “The vending systems, which are also on this line were affected,” said Migwi Theuri, Kenya Power’s communication manager in a telephone interview. Mr Migwi said the fibre lines were cut in Westlands on Friday and at Museum Hill roundabout on Saturday. “The cut cables at the Museum Hill roundabout hampered transmis-

Maintenance work at a power line. FILE

sion of data and communication to Stima Plaza,” said Mr Migwi. Emergency call services to call centres were also hindered.

Maintenance issues
The company is calling on Nairobi residents still experiencing power outages or system failure to contact

branch business heads for help. “They should be able to call branch business heads so that they are attended to. Some (clients) get problems and assume Kenya Power will know. It could be a localised problem (within an estate),” said Mr Migwi. Kenya Power uses Safaricom system provided by Jamii Telcom. The power distributor had on Saturday sent text communication to consumers, after numerous complaints, attributing the problem to emergency maintenance. “On Saturday and Sunday we had an upgrade of our IT system but it was about the same time the vandalism took place,” said Mr Migwi. Kenya Power rolled out its prepaid meters in 2012. The company targets fitting 520,000 prepaid meters by mid this year at a cost of Sh5.8 billion.


Highs Lows

The World
Highs Lows

Index to companies
This index of businesses mentioned in today’s issue of the Business Daily is intended to include all significant references to companies.
CCN ..................................................3 UN.....................................................3 KTB.................................................. 4 ICC................................................... 4 Tarda ................................................5 Uneca...............................................5 KAHC................................................6 MCTA................................................6 NCPB ................................................6 Honda ..............................................7 Tata ..................................................7 KEMRI...............................................7 KPWAU.............................................7 Equity...............................................7 Lonrho..............................................7 National Bank................................. 8 NSSF................................................ 8 CMC Holding................................... 8 JLR ................................................... 8 KCB.................................................. 8 Barclays.......................................... 8
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Tuesday April 2, 2013 | BUSINESS DAILY




Gove≥no≥ Kide≥o has his wo≥k cut out fo≥ him A
rguably East Africa’s commercial capital, the role of Nairobi in setting the tempo of political and economic activity in the region cannot be over-emphasised. Judging by the volume of traffic at Jomo Kenyatta International Airport and the port of Mombasa, Kenya is the uncontested gateway to East Africa by air and sea. Nairobi is also the most established city in terms of infrastructure and human capital. Its success in maintaining this leverage, however, lies in the county and national governments working in tandem to deepen Kenya’s stranglehold on these factors of comparative advantage. To understand the prime position that the city occupies in the region, consider this. Were Nairobi a country, it would be the richest in East Africa accounting as it is for 60 per cent of Kenya’s Sh3.7 trillion GDP — by far the largest in the region. To crown it all, Nairobi now hosts a newly upgraded United Nations office, which now has an Assembly status, making it the third of three UN headquarters in the world (after New York and Geneva) and the only one in the developing world.

Greater attention
These realities should lead us to the conclusion that for its importance, Nairobi deserves greater attention. Nairobi deserves a business-like environment where people work to eliminate the negative effects of the successive administrations that failed the city in the past. For its new UN diplomatic role, Nairobi should have an environmental agenda befitting an international capital. This will in turn make it easier to do business not only in the city but also in the country and region. Whatever Governor Evans Kidero and the new government have on the list of things to do, they must add the following: They must be alive to the dangers of air pollution arising from motorised transport. Many of the vehicles on our roads are not roadworthy — they emit dangerous levels of harmful smoke and cause preventable accidents because they are not properly serviced and maintained. Other jurisdictions have found an ingenious solution to deal with this menace. If your car has no evidence of service, has bad tyres or emits excessive smoke, then the fuel attendants at the gas station simply never fuel your car. In such circumstances, break-down vehicles are at hand to tow away your car to a garage. Our fuel stations, being registered legal business entities within Kenya, have a legal duty to protect the environment. The National Environmental Management Authority (Nema) and the

Kenya’s nerve centre
Nairobi is Kenya’s administrative, communications, and economic centre. The county has a large industrial complex which manufactures automobiles, food products, beverages, construction materials, cigarettes, chemicals, textiles, clothing, glass, and furniture, among others. It is linked by road with the rest of Kenya and by railroad with Mombasa on the Indian Ocean coast and Uganda throught western Kenya.

Nairobi Governor Evans Kidero arrives for his swearing-in ceremony at Uhuru Park on March 27, 2013. FILE
of treating dust-borne sicknesses and you have a very strong case for spending some resources and time on this. As the old adage goes “prevention is better than cure.” The place to start is holding property developers and owners accountable. Property development must not be considered complete without covering bare surfaces, including roads and footpaths. Dr Kidero must also go for the aesthetics and ensure that Nairobi has no poorly maintained buildings and that property owners refurbish and maintain them to set standards. This is a low hanging fruit for the new county government. All it has to do is re-introduce the bylaws governing paintworks on buildings. In many sections of Nairobi, one is often confronted by bad-looking buildings with rusted rooftops and dirty walls that have not been maintained for years. A fresh coat of paint will ensure that ours is a bright-looking city, besides creating thousands of jobs for painters and a big market for paint makers that themselves employ thousands of people. Yet the elephant in the house remains insecurity whose impact on business is immense and enduring. Insecurity must be dealt a blow with speed and finality. I am not a security expert but rather a victim whom at gunpoint lost a phone, wedding band and money. Digital technology and a convergence of data bases with citizens’ biometric details will go a long way in stemming crime. The county government must demand that all security personnel be digitally compliant and use close circuit cameras to monitor activity round the clock. Dr Kidero will soon find out that to realise his goals for Nairobi, he must deal with the outbreak and continued proliferation of indiscipline in nearly all facets of life in the city. One could say restoring some sense of discipline among city residents is the silver bullet that will help eliminate many of the problems that Nairobi faces as a growing city of three million residents. For a start, the new county government should just bring back and strictly enforce the Michuki rules. Too many lives are being lost on our roads and with it goes specialised human skills that have taken us years to nurture. The rules that aimed to tame rogue drivers, worked well with the late Michuki as Transport minister. This was simply because there was the will to enforce them and there is no reason this cannot be done again. The city authorities must also

adapt Rwanda-like clean-up exercise monthly, so that people identify with both the results of a clean environment and efforts to keep the city clean. In Kigali, you do not need to shine your shoes because there is no dust and mud from pot holes. Figure out the financial savings to the county just by mobilising over a million adults monthly in a clean-up exercise. If we cannot keep Nairobi clean, then perhaps let us relocate Unep to Kigali. Revive all the health centres that have hitherto remained dilapidated. Some time in the past, Nairobi had a reasonable managed health centre managed by City Council in every jurisdiction. The buildings are still there but in a state of disrepair. Full revival will go a long way in helping residents to cope with the high cost of treatment in private hospitals. In many of the low-income neighbourhoods, access to affordable quality health services remains only a pipe dream. Yet the basic infrastructure (found in the defunct Nairobi City Council dispensaries) exists. All that is needed is to refurbish these facilities, staff them with well-paid professionals and supply them with drugs and medical equipment regularly. And in the interest of the thousands of people who earn a living from micro and small enterprises, Dr Kidero will have to apply his management skills in reforming the city inspectorate department — that wing of his government that is in charge of security (council askaris) but are better known for their predatory, even criminal activities. These askaris could do with additional training in etiquette and professionalism.

Break cartels
He must break the cartels that have invested in old Land Rovers waiting at every intersection to tow away cars that have been impounded by police and the askaris merely to siphon money from the owners. If anything, the status of the County Security force should be made to be the envy of the national police force. If it works well, every child wishing to be a soldier would wish to work for Nairobi County. Finally to keep the reform agenda on track, Dr Kidero must put Nairobi on the team of African cities that will participate in an annual competition on an agreed criterion. This will add purpose to the job and keep the team on toes to attaining a truly global status. Mr Mugun is the Author of the books “How to Undo Life’s Airlocks” and “10 Critical Success Answers for SMEs”. He is presently Director of Special Projects at Strathmore Business School. @DavidMugun

Nairobi county administration must punish petroleum stations that fuel faulty vehicles. A simple gadget tells you about the level of smoke emission while a match stick head is enough to tell if your tyres are worn out. If the head cannot be fully lodged between your tyre threads, then yours are worn out. Then there is the very manageable irritant in dust. Ever wondered why in London or New York, there is no need to polish your shoes? Every bare surface has been covered by either concrete or grass. There is a direct relationship between dust-related infections and bare surfaces that generate dust. Managing dust would also significantly reduce the cost of cleaning offices and schools. Add to this the cost

” said Francis Mwangi. “We expect to see increased capital inflows and especially foreign direct investment. not least how Mr Kenyatta will juggle a case in The Hague while running a country.6 million are currently worth Sh2.9 per cent last year.7 per cent that went to China.lion for their ownership of 48. could be a boon for tourism. Equity Bank chairman Peter Munga Fellow investors in KCB Kanaksinh takes home Sh28 million for his 22. The list of top dividend earners in non-bank firms includes Scangroup’s CEO Bharat Thakrar who is set to earn Sh31 million for his 18. an investor. did not change with Saturday’s ruling that confirmed Mr Kenyatta as having won in a fair vote against Prime Minister Raila Odinga. a few manufacturers such as British representing a 16.” Ms Khan said. with just pockets of unrest marring the calm.” said one European diplomat in Nairobi. “We have been partners for many years. “We have not seen a change in demand for shares.25 imp≥ovement at KCB — will earn Sh107. the late Nelson Muguku. another base of Odinga support. NIC posted a net profit of Sh3 billion last year compared to Sh2. Prospects could now improve further. Chinese imports may almost match those from Europe but 26 per cent of Kenyan exports in 2011 headed to the European Union compared to 0. Whether the charges stand will be closely watched. About 350.8 per cent to 66 per cent culminating in higher profits. What is happening is that most investors are holding their stocks and this has seen a drop in trading volumes. the Equity Bank with Sh12. one of Kenya’s biggest tour firms. The bank posted the second largest — which benefited from high interest rates — topped the list of corporate net profit of Sh12 billion last year comgenerosity to shareholders followed by pared to Sh10. which is among Britam Group’s managing director Benson Wairegi (right) and Sunil Sanger of Orion Advisory Services Limited. adding that it was “not realistic” for Kenya to swiftly switch its economy towards China.3 a share for the year ended in dividends December 2012.9 billion. The payout million for his 56. he was someone we could talk to. which has rallied since January.3 million shares in Kenya’s biggest bank. “When Kenyatta was chairman of Kenya Tourism Board (KTB). The family.com/02042013 Tou≥ism secto≥ in pole position to enjoy peace dividend but that should also start to rise in the near-term. But it still puts Kenya behind its African neighbours.7 billion the year before.3 million. Mr Mwangi reckons that the sharp rally in the equities market despite the election season is a signal of the faith investors have in the market as a profitable investment option.3 billion the year before. allowing its chief executive. FILE the top shareholders at NIC Bank.” an analyst at Standard Investment Bank. however. Aides of Mr Kenyatta.7 million for the 24. tops the top investors to earn millist of dividend harvesters with a take-home of Sh159. remains one of the because of last year’s good performance. But in Mombasa. banking and education. talk of looking east if Western nations spurn their president.” said Suresh Sofat. including the family of vestors now stands at Sh1. to Sh1.9 per cent stake besides the rise in their paper wealth to Sh7 billion based on the lender’s share price of Sh52. although diplomats talk of a “pragmatic” approach that should avoid harming trade ties. But caution remains in the fact that old problems that annoy business. a desire to move on outweighed disappointment that their man lost. son of Kenya’s founding president.45 per cent dends.4 Karsandas and Sandip Babla are set to million shares in the bank where his earn a combined dividend of Sh91. Scangroup’s net profit dropped to Sh752 million in the year ended December compared to Sh911.2 per cent to 19 per cent last year but their interest income rose by a wider margin of 8. Kenya’s economy took a pummelling five years ago when weeks of post-election violence led to the killing of more than 1. Mr Bharat’s stake in the company is now valued at Sh3. Western firms may push to ensure their position in Kenya is not eroded.5 per cent growth. The economy grew 4. KCB topped the profitability chat James Mwangi. welcome words for Western states that have a policy of holding only “essential contacts” with ICC indictees. the chief executive of Somak Travel. He has insisted he can do both and says he will cooperate with the court to clear his name.85 the previous year. Equity Bank founders.5 The≥e has been lions of shillings in divimillion for his 3. such as corruption and red tape. The value of the two little-known inIn the past couple of years. “There is still the broader uncertainty of the ICC case. harvesting bilin dividends declared lions of shillings in the process.” said Mohammed Hersi of luxury Whitesands hotel.9 billion in 2011. of Kenya’s paper billionaires. Some businesses said 51-year-old mR Kenyatta.businessdailyafrica. Co-op Bank’s chief executive Gideon Muriuki remains in the list of top dividend harvesters with a total of Sh30 million for his 1. Vodafone . But both sides may work hard to avoid that. vjuma@ke.” Two people were killed when dozens of protesters took to the streets in the western city of Kisumu.19 per cent stake in the company. the nightmare of another spasm of violence has been averted. Equity. KCB.4 BUSINESS DAILY | Tuesday April 2.2 billion. lion. forecasting before the election that it could reach at least 5.1 million the year before on what the firm attributed to setup costs in West Africa. an Odinga stronghold.200 people.9 per share from the pe≥fo≥mance Sh1.1 per cent in 2011 while Equity Bank’s interest margin rose to an all-time high of 13 per cent in the quarter ended December 2012. 31 2012 recently. Barclays and Co-operative Bank’s loan books expanded by 5. The Kenyatta presidency.4 million KCB of the wealthiest individuERIC MUSAU al investors at the Nairobi STANDARD INVESTMENT BANK shares held by Mr Sunil bourse with 27. comes with additional baggage.4 per cent stake in the lender where his shareholding is currently valued at Sh980.5 to 5 per cent in 2012.3 mil. He is charged with crimes against humanity at the International Criminal Court (ICC) — an indictment that complicates his personal relations with Western states.” she said. has proven itself as a key route to wealth.5 to 6 per cent in 2013. This is despite the fact that the marketing services firm cut its dividend payout to Sh0. American Tobacco. The lenders raised their interest rates in reaction to the Central Bank’s decision to tighten liquidity in response to runaway inflation in the last quarter of 2011. We definitely will have more bookings.000 peo- ple were displaced from their homes. “Now we are good to go. Big names in the country include Diageo. peruse a document during the release of Britam’s full year results for the period ending December. helping the lenders to grow profit even as new borrowings slowed down. an analyst at most profitable firms at the NSE whose dividend payout policy amounts to milStandard Investment Bank. however. we will continue to be partners for many years.7 billion last year compared to Sh5. His family’s empire extends to dairies. »From Page1 Yet from the small-time shopkeeper who ran down stocks for fear of renewed looting to five-star hotel executives fretting about reservations.2 billion compared to Sh10. a significant stake in the bank that is Sunil Shah — the biggest individual shareholder paying its owners Sh1. Weekly trading volumes have dropped since the election in what analysts attribute to illiquidity caused by sustained demand for shares. 2013 TOP NEWS Kenya’s billionai≥es club sees fo≥tunes ≥ise in NSE windfall »From Page 1 nificant improvement their stake in the bank. -REUTERS See related stories on page 6 .6 from Sh0. the International Monetary Fund estimated. The financial results released last month show that investors in other services companies are also on the road to a dividend boom.” said Eric Musau. putting him firmly in the club Sh4.7 per share in 2011 on reduced profits. Commercial banks raised their lending rates to above 24 per cent last year compared to an average of 14 per cent in 2011. Chinese influence has grown sharply across Africa.decla≥ed because shares in the bank that crement from the previous of last yea≥’s good raised its dividend payout year’s Sh1 per share.9 milstake is now valued at Sh745. KCB said its interest margin stood at 10. “He understood tourism and was fighting hard for us all. The benchmark NSE 20 Share Index gained more than 200 points after the March 4 election to stand at 4861 on Thursday. Tullow and Canada’s Simba Energy. earning them higher returns on new and old loans that were re-priced upwards. have reduced The Ndegwa family.” Finance Minister Robinson Githae said soon after Kenyatta was declared winner on March 9.2 per cent to Sh7. Equity. is set to earn Sh135. Mr Musau reckons that banks lions of shillings for top owners. Mr Mwangi is also one The 56. Co-op Bank’s net profit rose 45. The bank’s stellar performance is linked to the high interest rate environment that widened interest margins against the backdrop of minimal loan defaults. Growth has still not returned to the 7 per cent level it reached in 2007 before the bloodbath began.nationmedia. The stock market. Mombasa’s biggest resort.4 million represents a 25 per cent in. up from 10. which has a 25 per cent shareholding in the bank – the maximum individuals are allowed in banking institutions – has defended that position by taking up its full rights in the past rights issues. promising the top shareholders millions of shil- lings in dividend earnings. “We have clients who were watching to see the outcome of the petition and the reaction that would follow.2 per cent rise in the stock price to Sh72. which were equally concerned by the vote because their economies were hit after 2007 when trade routes through Kenya shutdown. especially for investors with millions of shares.3 billion in 2011.7 billion after a 23.com FOR MORE ON THIS STORY SCAN THIS CODE OR LOG ON TO www. whose family owns the Heritage Group of hotels that range from a beach resort in Mombasa to an Indian Ocean island hideaway in Lamu.” Challenges remain.3 shares in Equity Bank currently worth billion. helped by robust growth in interest income.

improved East Africa. Natural resource discoveries are among the factors expected to drive economic growth in East Africa. FILE agricultural export commodities such horticulture. Exploration interest in Kenpected to realise a six per cent ya has particularly surged since growth this year compared to the country announced a year 5. followed by region is expected Recent a second find in the to post the fastest discove≥ies of same region. He said the county resources would be harnessed to revitalise the local economy and improve the lives of the people. “Even in agriculture. Kenya Sierra Leone and peace and has since demarcated eight new stability in Côte d’Ivoire. Mr Dado also warned “foreign” fishermen who he claimed were earning millions from fishing in River Tana without paying taxes. the implementation of the devolved system of governance will exert additional pressure on public spending.6 per cent in 2012—the secago its first oil strike by Britond highest for the continent this year. The governor. Improved output of report titled Africa Economic BY ALLAN ODHIAMBO The Ngamia 1 site in Turkana where British firm Tullow struck oil. exploration in recent years. Exports of the three commodities earned the country Sh218. we have the most potential in Coast if we use irrigation from River Tana. they have remained defiant. had stopped paying their mandatory dues to the then Tana River County Council from the beginning of the year. a new report showed. blocks for onshore and offshore “Increasing economic dioil and gas exploration to cater versity. “They capitalised on the transition and stopped paying taxes.” he said. leaving the government with a challenge of financing its overall budget. niobium of the top performing sub reand rare earth which are expected to earn the country foreign gions.” he said. Some crocodile farms are thriving in Mombasa from the reptiles taken out of River Tana. ish explorer Tullow Oil in the country’s The West Africa north. tea and coffee also remains an option for Kenya to grow its earnings in 2013 going by the forecast is for good weather. as well as the agricultural performance. Kenya. (Uneca) said the region is exTanzania and Mozambique. Revenue collection figures in Kenya have not been impressive since the start of the current fiscal year.com . to pay taxes to the county government.com Email: admin@madeingujarat. The United Nations Ecospurred by new finds in counnomic Commission for Africa tries such as Kenya.com Gove≥no≥ o≥de≥s agency to pay taxes BY DANIEL NYASSY Tana River County has ordered a regional development agency in the area to pay taxes or leave in a conflict that could become common as devolution takes root. is expected to public of Congo and Somalia remain among the fastest in Afwill help to improve prospects rica this year aided by natural in the sub region. growth for 2013 mine≥als a≥e The discoveries at 6. I am telling them that they must pay up or pack and go. “Fishermen come here and take our fish away from River Tana including crocodiles. Uganda. rising agricultural output and exports. a government agency carrying out irrigation farming.nationmed ia. “Recent discoveries of minerals in several African countries are expected to further expand fiscal space as well as public spending in countries such as Ghana. The UN agency said earnings from minerals and mineral resources would help countries such as Kenya to improve spending on programmes such as infrastructure which are key to spurring economic growth. ordered the Tana and Athi River Development Authority (Tarda). Even after we intervened.” Uneca said. buoyed by commodiof oil in Kenya trigexpected to ties—especially fu≥the≥ expand gered a rush which oil and minerals saw international fiscal space exploitation in oil and gas compacountries such as nies take up what UNECA REPORT remained of Kenya’s Ghana.6 per cent. Mauritania and Uganda. Hussein Dado. ‘‘Our county can produce enough food not only for Coast but for the entire nation and FOR export. which has remained one minerals such as gold. Additional returns from commodities could bring some relief to the new government which is expected to walk a tight rope as it juggles with options of sustaining economic growth through development spending without hurting consumers through higher taxes. “Consolidating peace and ensuring political Economic growth in East Africa.” resource discoveries.Tuesday April 2. Website: www. Although the country has taken bold steps towards fiscal consolidation in the recent years. has become a hot spot for oil and gas economic diversification. natural-resource discoveries are The country has also struck expected to boost growth in East substantial reserves on valuable Africa. and Horn of the continent. aodhiambo@ke. Revenue collection He said revenue collection had dropped by 60 per cent in the first three months of the year.” he said. The gravity of the situation is captured by the fact that the Kenya Revenue Authority (KRA) has a difficult task to collect Sh365 billion within four months if the government is to meet the fiscal year’s revenue target. Niger and 46 exploration licenCes.” the agency said in its income. another government body. exports and minerals to boost region’s income Report 2013. as well as new for the increased demand.madeingujarat.71billion in 2012. 2013 | BUSINESS DAILY 5 ECONOMY & POLITICS NEWS I REVIEWS I ANALYSIS UN ≥epo≥t sees 6pc economic g≥owth fo≥ E Af≥ica GROWTH Agricultural output. He said several ranches in the area including Galana Ranch. partly due to the effects of slowed economic performance. stability in the Democratic Reincluding Kenya.

Coast hotels set to lay off wo≥ke≥s in low tou≥ist season JOB CUTS Operators Back to wo≥k say casual staff will go on leave as the facilities embark on renovation BY MATHIAS RINGA At least 6. Mr Shalton Onyancha.600 whereas CAN while CAN will sell at Sh1. “Some hotels were forced to reduce overhead costs by temporarily relieving some staff of their duties until normalcy resumes. The Supreme Court’s Saturday ruling that upheld the election of Uhuru Kenyatta as Kenya’s fourth President has seen many traders in the city resume business. Mombasa and Coast Tourist Association chairman Mohamed Hersi said hotels in Mombasa would depend on conferences and domestic market during the low season.” Mr Kitoto said. Thousands of fishermen and curio dealers who provide support services to the industry would also be left without daily incomes. milk and meat to the leisure sector. a tours and travel operator.000 bags of DAP would be available at depots in the North Rift and parts of western and Nyanza by the end of this week. DAP is being sold at Sh2. Uganda.” he said. which rely on bed occupancy for threequarters of their earnings also bore the brunt of the business dip.6 BUSINESS DAILY | Tuesday April 2. “Now that politics is over and there is peace. Managing director Gedion Misoi said 200. JACOB OWITI The business community in Kisumu expects a gradual improvement in trade from weeks of depressed activity caused by uncertainty over the outcome of the presidential election. “We hope for the best in the high tourist season because there is peace and international travel agencies have confidence in our destination. Masai Mara and Samburu would remain open during the low season to serve locals. At least 2. Business was slowly picking up following weeks of uncertainty after the March 4 General Election. he said. Last week. mringa@ke. Kenya Association of Hotelkeepers and Caterers Coast executive officer Sam Ikwaye said that casual staff would be sent on unpaid leave as 33 hotels across the coastal region close down for renovations. 2. Guest houses. “The hotel industry is looking vibrant now and I already have a few bookings for next week unlike during the elections period when there were no tourists. most hotels in Mombasa remain open as we serve local holidaymakers. the Kisumu Hotels Managers Association said that bed capacity was at between 30 and 40 per cent against 70 per cent during for Easter holiday last year. said that he leased out about seven vehicles a day instead of the average of 15 per day during Easter. . “We shall have brought in close to two million bags of fertilisers for this planting season in addition to the fertiliser that is available in the private sector. the hotel has since January been having an occupancy of over 50 due to support from repeat tourists. “We have bookings from locals interested in game drives. Tour operators and car hire services also incurred losses during the period. Traders are also pegging their hopes on county governments to spur growth.500 down from Sh2.com Trader Masaku Wambua prepares to sell French beans at Wakulima Market yesterday.” said chairman Robinson Anyal. 200 bags had arrived at Kitale depot.000 casual workers in Malindi and Watamu towns are expected to be sent on unpaid leave as the investors. start repairs. Tanzania and South Africa to attract new business. Mr Ikwaye added that nine lodges and camps in Tsavo and Amboseli national parks would also close.nationmedia.500 in the private sector.” the managing director said yesterday at the Eldoret Depot. Association’s Coast vice-chairman Vikram Korla said less than 10 hotels in the South Coast would shut down in the low season sending hundreds of workers home. “Thousands of casual and contracted workers will be rendered jobless for three months as some hotels are shutting down owing to lack of guests. 1.600 bags at the Eldoret depot. The low tourist season kicks off shortly after the Easter holiday to mid-July when the high tourist season sets in. Last week. He puts the revenue loss suffered by 10 of the leading hotels in Kisumu at Sh10 million. Mr Korla said hotels in Diani had few guests since the beginning of the year Alternative plan The Mombasa and Coast Association plans to market their facilities in Ethiopia. He said the hotels had largely missed out on conference tourists and leisure travellers. Serena Beach Hotel general manager Tuva Mwahunga said the hotel had 90 per cent bed occupancy during Easter because of domestic tourism campaigns. The Supreme Court on Saturday confirmed Uhuru Kenyatta as the validly elected fourth President of Kenya with his closest challenger Raila Odinga accepting the judgment.” he said.000 bags were distributed to farmers between November and December. he said farmers would only be assured of quality fertiliser at NCPB stores. 2013 ECONOMY & POLITICS Businesses see g≥owth afte≥ Sup≥eme Cou≥t judgment BY LILIAN OCHIENG’ AND RAMENYA GIBENDI Calm is back in Kisumu after sporadic riots at the weekend. Farmers who have been cleared by the Ministry of Agriculture will be advised from the depots where to deposit the money. participants in conferences and workshops.” he said.” he added. Prof Misoi warned traders that they would be arrested if they were found selling subsidised fertilisers. the future is bright” Mr Onyancha said. Following reports that expired fertiliser worth more than 100 million had been impounded at the Mombasa port.000 workers in the hotel industry are set to be declared redundant this week following the onset of the low tourist season. Kenya Chamber of Commerce and Industry Nyanza chapter executive secretary Odhiambo Kitoto said businesses are set to recover as the political environment becomes stable.500 bags at Moi Bridge depot and 1. DIANA NGILA Nairobi NCPB sta≥ts sale of subsidised fe≥tilise≥ today BY DENNIS ODUNGA The National Cereals and Produce Board (NCPB) will from today distribute subsidised fertiliser for the long rains planting season which is already underway. mostly of Italian origin. because of the General Election with the exception of the Easter vacation.500 per 50-kg bag down from Sh4. “Despite the low number of guests. last year. The closure of hotels will reduce the market for farmers who supply fresh produce.” Mr Mwahunga said. Ashnil Hotels marketing manager Paul Kurgat said its lodges and tented camps in Tsavo East national park. “During low season. Another 800.

Regional expansion is becoming important as the East Africa Community (EAC) common market takes shape.65 billion. The annual demand for motorcy- Dr Isaac Kalua: He will own 10 per cent of Honda Motorcycle Kenya Ltd. with an initial production capacity of 25.53 2.63 per cent of the lender compared to 40.43 2. including Toyota. “The respondent shall not close its James Finlay (K) Limited. after South Africa and Nigeria and one of the few joint ventures between a Japanese conglomerate and a local investor. The auto maker said it will own 90 per cent in the Sh450 million-venture while environmentalist Isaac Kalua will own 10 per cent of the subsidiary. withdrew its financial support. Kenyan companies are opening subsidiaries in the region with banks following suit in an effort to offer seamless banking services in EAC — which has caught the eye of Equity Bank. giving room to the assemblers to produce cheaper vehicles. KCB and DTB. which is currently worth Sh1. FILE barring an executive director of a bank from holding more than five per cent of the institution’s capital. by more than Sh2 billion since 2010. 2000. who is a facilities management graduate from Yale University. meaning its investment has grown two-fold. He added that the PE firm could have mulled selling its shares in the bank had Equity Bank restricted its operations in Kenya. The new plant. says lender has room for growth BY DAVID HERBLING Private equity firm Helios EB Investors has made a U-turn over the pledge to reduce its stake in Equity Bank and committed to remain the largest shareholder in the lender on improved returns. which is a unit of Toyota Kenya. His direct stake has dropped to 3. commonly referred to as bodaboda.5 per cent to trade at Sh33. The judge agreed with the union’s argument that the closure of the hospital would affect HIV/Aids research project that the hospital has been running with Walter Reed Project-Kenya. saying it would affect patients and staff. Mr Mwangi’s stake is now worth Sh6 billion. The United States Military HIV Research Programme is run with the Kenya Medical Research Institute (Kemri). The family of the late Nelson Muguku has cut its stake. FILE successfully formed a joint venture with local investors before ending the cles in the country has increased from 16. the private equity fund reckons that Equity Bank is yet to hit its peak on the bank’s regional agenda and that it is keen to enjoy dividends of the growth as the lender’s top shareholder.” said Honda Motor Co in a statement. The stake is now worth Sh30 billion and Helios has earned Sh3. the Medical Practitioners and Dentists (Private Medical Institutions) Rules. Other players in the market include Yamaha Kenya.44 2. Dr Kalua.82 per cent in October 2011. opening way for free movement of factors of production in a market of 130 million people.9 per cent stake in Equity Bank. Individual top sharehold- Top shareholders Name Helios EB Britam Equity ESOP James Mwangi Equity Nominees a/c 00104 Fortress Highland Stanchart Nominees a/c 9069 Andrew Kimani Solidus Holdings StanChart Nominees a/c 9054 % 24. Honda is seeking larger share of the motorcycle market that is dominated by brands from China and India. The anchor shareholders were barred from selling their shares as a condition to listing at the NSE. Equity Bank posted a 16.86 3. Hyundai Motor Company and China’s Foton. Uganda. for public transport.215 in 2011 on the increased use of the bikes. hdavid@ke.000 units per year. including employees. Rwanda and South Sudan nearly doubled last year from Sh552 million to Sh1. Now. Honda said the Kenyan subsidiary will initially employ 60 workers and will produce several entry-level models to be marketed in Kenya. The company last month outsourced health services to Unilever Tea Health Centre in Kericho town and issued redundancy notice to the workers.25 and foreigners now own 46.97 2.293 in 2007 to 140. Honda’s Japanese rival Toyota un- partnership. Besides the regional market. has earned about Sh1. James Mwangi.43 per cent.” ruled Mr Justice Ongaya. will boost the profile of Kenya’s auto business at a time car dealers. 2013 | BUSINESS DAILY 7 CORPORATE NEWS NEWS I PROFILES I TRENDS Helios makes U-tu≥n on Equity exit OWNERSHIP PE company to remain largest James Finlay stopped f≥om closing hospital BY GALGALLO FAYO shareholder. The Kenya Plantation and Agricultural Workers Union (Kepawu) moved to court to protest the closure of the hospital. directors and founders.73 2. “The company will establish a system and capability for global parts sourcing as well as efficient production to deliver high quality products at affordable prices. who is also a director of Equity Bank. We still see a lot of potential in this bank. previously a director of Honda Vietnam’s office. Since debut on the NSE on August 7. Helios said during the meeting that the bank has a lot of potential. Chomogonday Central Hospital unless the closure is in accordance with the provisions of the Medical Practitioners and Dentists Act and. millionaires. 2006.” said Mr Lawani. Justice Brian Ongaya stopped James Finlay Limited from sending 53 health workers who were affected by the intended closure. Sixty workers Lonrho Motors was suspended from trading at the Nairobi Stock Exchange (now Nairobi Securities Exchange) after it was placed under receivership.45 2.49 per cent. Honda unveils local pa≥tne≥ in Sh450m moto≥cycle plant BY SIMON CIURI Japan’s Honda Motor Co has partnered with a local investor to start an assembly of motorcycles in Kenya opening in September to capture growing demand for bikes in the East Africa region. taking into account splits and bonus stocks in what has made its owners.Tuesday April 2. It will be the company’s third local subsidiary in Africa.38 Equity Bank shareholders at an AGM last week.9 per cent rise in net profit to Sh12 billion in the year to December —making the second most profitable bank in Kenya behind KCB. The subsidiary has appointed Yasuhiro Imazato as CEO. are showing a bias for local assembly.45 per cent from 5.08 billion compared to a loss of Sh330 million in 2009.com SOURCE: ANNUAL REPORTS ers of the bank have since 2008 earned billions of shillings from the sale of their shares after the end of a twoyear-lock-in for anchor shareholders. Imports of parts used in local assembly are exempted from the 25 per cent import duty levied on fully built units. but he has indirect interests through British American Investments and the bank’s Employee Share Ownership Plan amounting to 1. It went into partnership with Lonrho Motors —which was owned 20. India’s Tata Motors. The union said the closure would mean transfer of information held in confidence. “We have no plan to exit.6 billion over the past four years from share sale that he said were dictated by regulations The Industrial Court has stopped a multinational tea company in Kericho from closing a dispensary after it found that the company had failed to consult the employees’ union and notify the regulator. “With the regional growth to east and central Africa.5 per cent by local investors associated with former President Moi.45 7. . Honda Motorcycle Kenya Ltd. Honda will benefit from a lower tax bill through local assembly and offer competitive pricing. Liverpool-based Lonrho Plc. The move came after the parent company. in 1999 before buying it out.66 3. the share has appreciated by more than 900 per cent. jeopardising confidentiality. and Car &General that deals in TVS and Suzuki brands. the bank is growing very well and we foresee higher returns.nationmedia. The hospital established in the colonial period also serves the residents. Profits from its foreign subsidiaries including Tanzania.” Helios co-founder Temitope Lawani told Business Daily on the sidelines of the lender’s AGM last week. The bank has been one of the most sought after counters at the Nairobi Securities Exchange (NSE) having gained 70. The London-based PE said in 2007 that it would exit the bank in a period of between three and seven years through the Nairobi bourse after paying Sh11 billion to acquire a 24. which owned a 79. is the founder of Green Africa Foundation — which champions pursuit of economic development while reducing environmental risks commonly known as green economy.4 billion in dividends since 2008. the CEO.5 per cent stake.

” said CMC in its latest application. Treasury says it will weigh the strategic importance of participating in the rights before injecting additional capital in NBK. “RMA will be making the significant investments in terms of people.8 per cent drop in profits to Sh729 million in the year to December.41 0.” said Munir Ahmed. Treasury has not been participating in rights done by banks where we have stakes. NBK has never raised cash through a rights issue since listing at the Nairobi bourse in 1994.” finance minister Njeru Githae told the Business Daily last week.37 0.35 billion. JLR said last week that RMA Group will start distributing its brands Land Rover. 2013 CORPORATE NEWS GROWTH Cash call could cut government stake from 22 per cent if Treasury doesn’t participate inthe offer Trust Bank and Standard Chartered that have recently turned to right issues for expansion cash. Jaguar and Range Rover brands to RMA from February 3. The Treasury (which has a 22 per cent stake in the bank) is saying it might decide to sit out the rights issue. The bank is eyeing to raise the cash from shareholders next year to widen its reach and deepen its corporate banking business that has generated about 13 per cent of its loan book. The South-Africa based firm said RMA will invest in showrooms. FILE cate JLR plans to use RMA to gain market share in the regions luxury market through new brands like Range Rover 2013 and Jaguar F-Type in Kenya this year. CMC Holdings has moved back to court seeking to stop Jaguar Land Rover from dealing with a rival firm pending the conclusion of an appeal by the auto dealer. the managing director who took the helm in August following the retirement of Reuben Marambii. Diamond CMC in f≥esh cou≥t bid to stop Jagua≥ Land Rove≥ BY GALGALLO FAYO The matter CMC wants to stop JLR from dealing with RMA group pending conclusion of its appeal It maintains its business will suffer should the multinational auto firm be allowed to deal with RMA pending the appeal. “We need more capital to take us to top tier band by 2017 and be among the top five banks in Kenya. But CMC maintains its business will suffer should the multinational auto firm be allowed to deal with RMA pending the appeal. NBK is also seeking a wider retail network to boost its power to gather deposits and maintain its market share.5 billion and Sh1. The government’s shareholding in KCB dropped from 70 per cent in 1990 to 35 per cent in 1998 and 26. the respondent does not stand to suffer any prejudice by the issuance of the orders sought.2 per cent in 2007 and 17.” JLR said in a letter published in a local newspaper.” The additional capital is aimed at funding the bank’s plans to explore opportunities to further strengthen its business. The bank plans to open between 10 and 15 branches this year and 10 branches next year — which will benefit from the cash call that will also raise the bank’s capital levels to allow NBK close big-ticket corporate deals. It will join a number of banks including KCB.13 billion preference shares worth Sh5. “We’ll do an analysis to see how much we need. NBK says the additional capital will boost its capacity to lend to larger borrowers.1 billion respectively as a bailout package. “RMA Kenya and Jaguar Land Rover will be sharing their plans for the launch of the new operation over the coming days and weeks. whom its targeting to reverse the 52. The government has 79 per cent of the preference shares — which are stocks that pay a fixed dividend and do not have voting rights. .8 BUSINESS DAILY | Tuesday April 2.23 0.18 National Bank of Kenya managing director Munir Ahmed during an investors’ briefing in Nairobi last week. Lending to a single borrower is capped at 25 per cent of a financier’s core capital — which means NBK can lend Sh2. Mr Ahmed said.05 22. The drop was linked to costly deposits and the lender’s heavy reliance on consumer banking that accounts for about 85 per cent of its total NBK Top Shareholders % NSSF Treasury NIC Custodial a/c 077 Equity Nominee a/c 00084 Paul Wanderi Ndungu Stanchart Nominees a/c 9098J Ephraim maina Jubilee Insurance Craysell Investments APA Insurance 48. “Applicants will suffer irreparably if the respondent (JLR) is not restrained by an order of injection pending the appeal.6 billion. which saw the government and the NSSF inject Sh4.06 per cent stake in NBK and also holds 21 per cent of the bank’s 1. Family Bank. hdavid@ke. The JLR brands account for 30 per cent of CMC’s annual unit sales and their loss would hurt the auto firm whose operating profits have been falling since 2008. JLR threw CMC into a crisis last year with the announcement that it would transfer the rights to exclusively trade in Land Rover Defender. a move that will dilute government’s ownership.” said Mr Ahmed. service centres.34 0.63 per cent in December. The shares have their roots in 2000 when the bank was facing a crunch due to bad loans. Cooperative Bank.” If successful.50 0.33 0. “On the other hand.com National Bank mulls fi≥st ≥ights issue since listing BY DAVID HERBLING National Bank of Kenya (NBK) is planning its first rights issue to finance expansion in a transaction that could further cut the stake of the government in the mid-tier lender.” Sources familiar with the plans say RMA will lease facilities owned by auto dealer Marshalls East Africa in smaller towns and establish its own branch in Nairobi. and hire staff to enable it operate the franchise in the local market. the injunction will delay and further compli- CMC offices. SALATON NJAU SOURCE: ANNUAL REPORT loans advanced. “We will see whether it’s strategically important to maintain our shareholding but historically.29 0.4 billion to a single borrower while Kenya’s fifth largest bank. The National Social Security Fund owns a 48. premises. Range Rover and Jaguar after the High Court on March 19 dismissed a suit seeking to block the multinational from ending its pact with CMC.32 0. and parts inventory to ensure the best possible service levels are maintained. “Our aim is to cover all counties in Kenya. Treasury did not participate in KCB’s and Housing Finance rights issue that cut its stake in the two banks.nationmedia. can handle Sh7.

South Africa could teach China a thing or two about democracy if China was willing to listen. Senate Majority Leader Harry Reid. From a political point of view (democracy. there is little common ground between Angela Merkel and Putin – the good old times of “male bonding” between Schröder-Putin and Kohl-Yeltsin are long over. African countries. Xi Jinping. The author is professor of Economics. Mr Xi was not only addressing African leaders.” Well. In fact. China would be foolish not to use its leverage. not the least of which is South Africa. freedom of speech. If you complain that China has an unfair advantage in exports due to child labour or other labour rights violations. President Xi’s charm should not hypnotise Africans to think that China is so altruistic as to not have any conditions on its low-interest loans. the study’s point still carries merit. whether from the West or China. and Tanzanian president Jakaya Kikwete being entertained at Julius Nyerere International airport in Dar es Salaam on March 24. as any good host would do. it cannot escape conditions. 2013. He was criticising the West and the World Bank and the International Monetary Fund (IMF) for tying economic aid to conditions. mshomba@lasalle. [they] gain. Barack Obama US President Dana Milbank (Washington Post) Obama made an impassioned bid this week to revive prospects for gun-control legislation.C. And “internal affairs” has broad interpretation. is not necessarily wise to give aid with no condiWhen that proposal As long as China tions attached. (By the way. even if there are other contractors who can do a better job at a lower cost. or to restore macroeco≥ecipient. China rican leaders have the best interests of Harbour Engineering Company (CHEC) their own people at heart. countries are not equal to each other. According to a study by Carol Lancaster and Samuel Wangwe in 2000. for example. China will expect its contractors to be given priority for. A fellow Democrat. . As long as China is the donor (lender) and the African country is the aid-recipient (borrower). China will have leverage and will use it.. Germans. In terms of political belief. what is often called aid is actually a lowinterest loan. you are interfering with internal affairs. Africans are rightfully known for their kindness and politeness to their guests. Just as an example. Of course. but it’s difficult to escape the conclusion that his efforts come too late. most aid-dependent countries to a middle-income country no longer in need of significant amounts of external assistance and where donors have begun to phase out aid. “Managing a Smooth Transition from Aid Dependence in Africa. Tanzania’s first lady Salma Kikwete. especially if those guests bring or promise to bring gifts. However. China at least a major part of it. it of a new one. projects financed by China’s loans. may propose expansion of an existing notwithstanding the self-interest of the harbour or construction aid-giving countries. of course. We certainly are convinced that China’s insometimes oil sale agreements [and Stefan Meister (Guardian) Germany is Russia’s key political and economic partner in the EU. The point is that China’s aid is not as Another point to be made is that unconditional as President Xi is trying while policy conditionality can limit to make Africans believe. you might as well believe that there are no labour violations in China and that China does not manipulate its currency. if African leaders accept China’s aid. Mongols.” Botswana “has gone from being one of the poorest. From an economic point of view. There is no unconditional foreign aid. have many economic and trade agreements with the West. China flexibility and policy space of the aidestablished an Export-Import Bank that receiving countries. Angela Merkel German Chancellor From left: China’s first lady Peng Liyuan. Spanish. freedom of religion). China is a power house compared to any African country. no matter what the President of China may want us to believe. Japanese or even Americans. there is no A common scenario is that a Chinese company would propose a project to a denying that not all African countries given country and then help that country have good governance and not all Afsecure a loan. the host Who. Over two millennia. etary and exchange rate policies? A recent study. from a practical point of view. different from other donors. South Africa and a number of other African countries are more akin to the West than to China. Russians. if all African countries had the good governance Botswana has demonstrated over the years. China has not attempted to conquer its neighbours or spread its system of government on any scale remotely comparable to the Romans. With a 2. of course.Tuesday April 2. those donors know better than Africans themselves. China is in the best position to take the lead — and relieve the United States of a burden it has shouldered for too long. This gathering indicates commitdo require equipment purchases and ment to mutual respect and benefit. La Salle University in the US. but over the last two years – and especially since the return of Vladimir Putin as Russian president – there has been an increasing alienation between Berlin and Moscow. In 1994. Chinese president Xi Jinping. has promised Africa $20 billion in financial assistance with no strings attached. It is a government bank are important. In other words. no other nation has had as stable a pattern of world citizenship.” As long as Africa continues to be dependent on aid. why have African countries continued to nurture them? Now.200year history of non-aggression. if not the exclusive right to. Now. D. but it would be naïve to think that China is above it all. has killed plans for bans on assault weapons and large ammunition clips. conditionality would be inconsequential because Africa wouldn’t still be begging for aid. British.” gest that China will be doing anything While one can expect a certain bias. which to date continues to attempt to influence African countries for their sole benefit. they better be prepared not to criticise the Chinese government or its policies. he is implicitly placing a condition that African leaders must not interfere with China’s internal affairs. is quoted saying “we are parLatin America. some conditions by functions more or less like the one in the the donor countries and organisation United States. Some of the conditions set by the World Bank and the IMF are indeed quite intrusive. including loans carry more stringent conditions non-technical work. “The The President of New Banks in Town: South Africa. If those agreements produced gains only for the West.) When President says that China will not interfere with the internal affairs of African countries. If you can believe that. Therefore. Merkel has been a much more critical partner to Moscow than her predecessors and Russia’s poor human rights record is a common theme in German discourse on the country. 2013 | BUSINESS DAILY 9 IDEAS & DEBATE OPINIONS I REVIEWS I ANALYSIS GEOPOLITICS A recent study found Chinese loans carry tougher conditions than World Bank’s Other Voices Kim Jong-un North Korea Leader China’s ‘unconditional fo≥eign aid’ fo≥ Af≥ican count≥ies is a big myth tention is different from that of Europe. nomic stability without will have leve≥age would be implemented conditions on its monand will use it by CHEC. Mr Jacob Chinese Finance in Zuma. In fact. French. This is not to sugthan World Bank loans.edu Elizabeth Hoffman (Reuters) Nuclear escalation on the Korean Peninsula demands creative solutions. It’s not that Mr Zuma was hypnotised by President Xi’s promise of loans to Africa. is accepted.” by a think tank (Interticularly pleased that in our relationAmerican Dialogue) based in Washington. in country applies to the is the dono≥ their right mind would Export-Import Bank and the Af≥ican have been willing to asfor a low-interest loan count≥y is the aidsist Zimbabwe in 2008 with the understanding that the project. President Zuma was just stretching the truth with very common diplomatic rhetoric. AFP BY RICHARD MSHOMBA The President of China. concludes that although ship with China we are equals and that “Chinese banks impose no policy condiagreements entered into are for mutual tions on borrower governments. Republicans appear to have enough votes to block any meaningful expansion of background checks. China will also try to bring a lot of that] China Development Bank (CDB) its own people to do the work. with the primary purpose of subsidising This is not necessarily to say that and promoting Chinese exports.

a simple standoff over the procedure of hiring officials to serve on the board of Kenya Tourist Development Corporation (KTDC) threatens the wellbeing of this key sector.” Kenya’s past and p≥esent gove≥no≥s pointed Commissioners.3bn. Email: bdfeedback@nation. Please include your full names. The editor invites comments on our content and topical issues. Nairobi Linus Gitahi: Chief Executive Officer | Joseph Odindo: Editorial Director Ochieng’ Rapuro: Managing Editor P. By last December.” Opinions f≥om a≥ound the wo≥ld Lay emphasis on good English The Liberal Democratic Party’s panel on education has announced it will propose that all students in Japan take the Test of English as a Foreign Language to JAPAN TIMES enter and exit university. Governors in colonial Kenya remained subordinate to officials in London while in the US governors of states are subordinate to federal authorities on matters national. And shortly after the ruling. While Western nations have hailed Mr Kenyatta’s win. TOKYO The new proposal also includes a requirement for all aspirants to central government positions to take the exam from fiscal 2015. confused governors will grandstand. The agriculture sector must be helped to support satelite industries at the county level. despite its shortcomings. Unless he improves on our revenue collection. besides.co. There will be rough and tough times ahead. the proposal offers no genuinely effective measures for improving the teaching and learning of English in Japan. No conflict at all. Africa’s democracy is growing Kenya’s Supreme Court upheld Uhuru Kenyatta’s presidential election victory on Saturday and his main rival accepted the ruling. has power to dissolve unstable county governments. Britain renamed the territory as British East Africa Protectorate in 1895 and ap- VIEWS FROM ABROAD Wrong message at Obama meet Symbolism matters. implying administrative and political power. The territory’s name changed again in 1920 to Crown Colony and Protectorate of Kenya with Edward Northey as the transitional governor. mesmerised governors who dream of rendering the national government irrelevant and of exercising political absolutism in the counties. Mr Uhuru must walk the full length of this country assuring all Kenyans that they will not be discriminated against. USIU MACHARIA MUNENE LEADERSHIP F Resolve standoff at KTDC Reports that a lender is unable to disburse Sh180 million to the tourism sector because it lacks a board of directors to sanction allocations are regrettable. The last four had to deal with a rising anti-colonial tide. the County Commissioner ensures protection of national interests.. While grand-standing. There had been several insinuations that the court ruling was likely to spark off violence.Box 49010 GPO Nairobi Telephone: 254 20 328 8104 Fax: 254 20 214849 Email : bdfeedback@nation. Although that is one of the main problems that he has to deal with. Kenya had rulers with assorted titles. Among the most common title was “governor”.bdafrica. We believe in the rule of law.3bn against a target of Sh404. The developments in Kenya are yet another silver lining on Africa’s growing democracy. Judging by the suppressed anger that followed the Supreme Court’s decision to uphold Mr Kenyatta’s victory. to wield local power. 2013 EDITORIAL & OPINION Published by the Nation Media Group. it is not right. To get national funding for their programmes. When the president spoke at Georgetown University in 2009. The gold “IHS” monogram inscribed in the hall where Mr Obama spoke was duly covered. As part of efforts to improve the low level of English in Japan. and trappings of power. the total revenue collection stood at Sh360. or president. five men called “administrator” looked after company interests. national and county. There were other colonial era titles.. Orange Democratic Party (ODM). governors must account to Nairobi.. there is still some unresolved issues on how they will deal with his government given the cases at the International Criminal Court. Unfortunately. The sector plays a crucial role in boosting the country’s foreign exchange earnings and must be accorded all the support to thrive. telephone number and address in your letter. king.co. The governor gets glamour and manoeuvres local politics to deliver on promises. This situation should be addressed immediately and a board appointed to run this crucial agency which is charged with funding investors who put up tourism facilities. at independence. There are. However. Governor overshadows titles of temporary value such as “administrator”. Mr Kenyatta should reach out to all people and be the symbol of national unity as dictated by the Constitution. his advance team asked THE WASHINGTON TIMES that the Roman CathoWASHINGTON DC lic university cover an image derived from the first three Greek letters of the name of Jesus Christ.. however. This country has enough qualified people who can manage the affairs of KTDC. No such scruples and sensitivity were prescribed when Mr Obama recently joined Palestinian President Mahmoud Abbas in the West Bank for a news conference under the banner of a larger-than-life image of Yasser Arafat. provides their security and limousines flying the national flag. MacDonald probably sanitised the title governor. it also allowed us to reflect hard on the inner tenets of this nation. The Constitution called for election of senators to represent county interests but not necessarily the people in the county. with a proposed ¥1 trillion budget. the national position will prevail. My blood type is B negative. Raila Odinga THE NEW TIMES delivered a televised KIGALI statement accepting the court’s unanimous decision and congratulated Uhuru. is directed toward a crucial issue for Japan’s future. To spur economic growth. The title has been resurrected with much fun-fare. the last being James Hayes Sadler whose title changed to governor in 1905. While the Accord. It will be important for Mr Kenyatta to reach out to all nations and perhaps maintain Kenya’s foreign policy of non-aligment. Mr Kenyatta’s government will find it hard to balance it’s budget and meet the promises he made during his campaigns. complain. and has critical national functions at the county level. but at the end of the day democracy and respect of the decision of the Supreme Court prevailed. Mr Kenyatta will finally be judged on how he builds a solid economy. rom its official creation as British territory and then Crown Colony in Eastern Africa.com Uhu≥u should p≥io≥itise ou≥ economic g≥owth T he next Uhuru Kenyatta government will inherit an economy saddled by a huge public debt amounting to Sh1. Mostly identified with colonial Kenya. The title governor also connotes an officer who is subordinate to another such as emperor. however politically correct. It is on this that Kenyans will be watching him. but bureaucracy must not be allowed to creep into day-to-day functions of government and frustrate noble intentions such as boosting tourism. Kenya had 11 governors whose impact varied with prevailing challenges. governor arouses governance romanticism that is associated with glamour. Sadler helped to organise the first Legislative Council (LegCo) for appointed settlers with himself as the presiding officer. to adopt a winnertakes-it-all attitude.O. starting with Arthur Henry Hardinge. The influence of the US in drafting of Kenya’s new Constitution is apparent in the creation of two levels of government. That means that there was a Sh44bn shortfall. and Wiper Democratic Party together to implement the National Accord and Reconciliation Act will finally be dissolved.ke . and President Obama knows it. Elected county bosses enjoy political romanticism as thrilled governors. To comment. There were four commissioners. And in case of serious conflict.ke www. Malcolm MacDonald endeared himself by being nice to the incoming African government. Demand for funds to develop or upgrade tourist facilities is huge and KTDC must not continue sitting on money because of bad decisions made by a few individuals in government. Mr Kenyatta must put in place schemes to attract investors and offer them incentives to get into business. Odinga also wished Team Uhuru the best in their new job. Like a mature statesman. and flop.8 trillion. Macharia is a Professor of History and International Relations. the proposal.10 BUSINESS DAILY | Tuesday April 2. they ignore the fact that the national government organised swearing in ceremonies. Since the company failed. We should not throw away those gains.. widely regarded as “the father of modern terrorism. In a week’s time the Coalition government that brought together Party of National Unity (PNU).. As the last governor. “commissioner” and “prime minister”. prestige. Kimathi Street. “I was born a pessimist. Political temperature will occasionally rise and this country will look upon the Presidency to hold the nation together. gave this nation a proper power balance and allowed us to enact a new Constitution. Competition in the tourism sector is huge both regionally and globally and we cannot afford to compromise on opportunities that would hand the country an edge. Those who understand the relationship between national and county governments will develop their counties. Of importance will be need to increase support to small and medium sized enterprises and bring into the tax bracket many more people. From 1920 to 1963. Under the umbrella of the Imperial British East Africa Company led by William Mackinnon. The national government.

it’s preventing Europe from asserting itself as a collective whole. and enhanced agriculture are what Kenyans expect from county governments in the next five years. not least an increase in poverty levels. The new legislators complain as if they are being forced to take mortgages and car loans or live in Runda and Muthaiga. With over 800. Additionally. That is why we need younger leaders who will take interests of the people seriously instead of advocating for higher paychecks even before being sworn into office. To voters. It was a sideshow. tough times beckon with deadly ramifications. . Bremmer is the president of Eurasia Group. you are mistaken. for example. Were they living on Mars before being elected? No. Wafula Peter. one that’s playing out in the open. it has to first generate an unnecessary crisis. and lack of industries in rural towns. It is the duty of each governor to protect interests of his county and ensure that its development is at per with others. They should be paid and taxed like any other working Kenyans — on a take it or leave it basis. It appears that those we elected have turned against us too soon. he new MPs’ plot to disband SRC on grounds that is slashed their salaries from Sh851. This can easily bankrupt Kenya. Prof Ngugi wa Thion’go defied odds to write against female genital mutilation in his early writings. and Ochieng Oneko sacrificed their lives for Kenya’s independence. ow that the crisis in Cyprus has passed.000 shows how greedy the current crop of MPs are.2013. But not people who rob us by twisting the law. Establishing healthcare programmes. Cyprus may not have been another Greece.000 young people flooding the weak job market every year. we need to pay deserving civil servants more. Unless we safeguard our economy by keeping the wage bill at seven per cent and below. Bildad Kaggia. It is sad to learn that the plot has come at a time when the MPs are yet to do anything tangible for Kenyans. Reforms cut both ways. The system will only be perceived as successful if substantial benefits are achieved. that is what many will realise. If Cyprus had drowned in a sea of Mediterranean debt. Unless we grow the economy at 10 per cent for at least the next 15 years. VIA EMAIL. is suffering. They may be edited for clarity. not lords. Constitution empowers us to tame new legislators’ greed I t is evident that most of the new MPs who are waging a war against the Salaries and Remuneration Commission over reducing their pay did not read the Constitution before embarking on their campaigns. the Kenya version of the Arab Spring is nigh. 2013 | BUSINESS DAILY 11 EDITORIAL & OPINION MPs unwittingly cou≥ting st≥eet p≥otests BY KARIUKI MUIRI POLITICS he new MPs are dead serious in their threat to suspend the Constitution and disband the Salaries and Remuneration Commission (SRC) — reason? The body that is constitutionally mandated to align our public wage bill with the economy reduced their salaries. The country is now called again to fight the over 400 elected tyrants. The Cyprus affair proves that the European Union has parallel crisis narratives. It spoke to the new reality in the Eurozone: For anything to get done. So what does all this mean going forward? What hope can we have for a continent and an economic zone that needs to cry wolf any time it wants to herd the flock? If I were a European finance minister. There is no record showing that they were paid for their efforts. If Kenya’s history is anything to go by. even if that wasn’t the case. For far too long. poor infrastructure. picket Parliament. for instance that they left high paying jobs to go in politics. Governors need to remember that Kenyans voted for the devolved system of government hoping that it would serve them well. The MPs should understand that only those who are truly committed to serving the people should seek elective posts. they were humble Kenyans living average lives. and stop the self-serving. flaws inherent in the EU’s design — and distracting debt crises — often leave it unable to operate as a cohesive diplomatic body. When it comes to foreign policy. we cannot stand-by and watch as the new MPs plot to loot the Treasury. but other key EU players are wary of that budding relationship. His arguments were as relevant then as they are today yet nobody paid him for the effort. Days when T Kenyans protested on streets to get constitutional guarantees are back. the late Jomo Kenyatta. and friends to socialise with just like the MPs. Opinions expressed here are not necessarily those of the editor or publisher. My prediction is that 2017 will see more younger people take up seats in the August house. Days when people used all their money to run for political office then loot the Treasury are gone. let them serve us.Tuesday April 2. The people must now get organised against the legislators. We will use the constitutional provision which allows voters to collect enough signatures and cast a vote of no confidence in them because this is the only way of getting rid of selfish MPs While some of their arguments can be justified. but more or less unilaterally. Mind you. What. this is a demonstration that most of them are not in Parliament to represent them but to enrich themselves. The Germans are friendly to the Chinese. FILE to support. With over Sh80 billion unsettled development invoices currently. My generation wasted the 90’s fighting former President Moi’s dictatorship. The Constitution states that SRC can only be disbanded through the approval of Kenyans via a referendum. But it did reveal the phenomenon of the “manufactured crisis” of market forces and media frenzy that we are sure to see again. But crisis. 25 stand in opposition to a French-British push to provide arms to the Syrian rebels. Despite the different levels of development in counties. Not only is every faux-crisis a distraction that derails policy leaders. and another underlying one that gets less attention but is far more concerning. we can finally admit the obvious: The “crisis” it provoked did not deserve the attention it received. Cyprus was not Greece (or Italy. greedy people have run for political office with the sole aim of enriching themselves. governors’ are expected to work out a winning formula through hiring the right people and employing unique management skills. the leading global political risk research and consulting firm. Nor have the bailout terms set a precedent for future crises in the Eurozone’s periphery. space or legal considerations. With the new system of governance. That said. I’d tell you that the Eurozone is in existential peril. It will spare nobody including our new President-elect. We also have funerals to attend. manufactured or otherwise. we look forward to forgetting issues like unemployment. for the next few years. such are the sacrifices we expect from true patriots and nationalists. families A section of the National Assembly as members waited to be sworn into office on March 28. If you thought that the new Constitution that we gave ourselves is enough to set us on the path of reforms and shield us from such tyrants. Cosmas Mogere Voters expect a lot from county governors.000 per month to Sh532. is still the only thing that will bring some change to the continent. Why do people run for political office if their intention is to grow rich on the back of taxpayers? Why abandon a higher paying profession like law to join politics yet you are not ready to do public duty at a lower pay? Let us make this clear. or set any precedents for dealing with debt crises going forward. the Eurozone would not have gone under with it. MASENO. Muiri is a regular commentator on political issues The Cyp≥us takeaway: Mo≥e phony c≥ises to come BY IAN BREMMER ECONOMY N Letters The editor welcomes brief letters on topical issues. if he sides with the tyrants out to destroy our economy for selfish gain. to their utter horror. But that sideshow is still telling. meanwhile. Currently the public wage bill is over 12 per cent of GDP. Cyprus makes up a fraction of one per cent of the European Union’s GDP and it’s a backwater for sketchy Russian dealings. That approach allows a debt crisis in the EU’s smallest member to flare into the global spotlight. SRC is on the right track and should be congratulated for work well done. the politicians can forget huge salaries. outstanding education facilities and infrastructure. is the EU’s foreign policy at the moment? The French are intervening in Mali. unpatriotic MPs from carrying out the robbery. Of the 27 EU states. or Spain). and so crisis is what it will get — likely. the ridiculous pay for constitutional office holders and other parastatal bosses must be aligned to the economy accordingly. we are well on our way to bankruptcy. T ** Dalton Nyabundi. Now that they are public servants. Our political history notwithstanding. Intervening in Mali Europe. don’t let them down C ounty Governors ought to remember the heavy burden placed on their shoulders by Kenyans in terms of steering development.

3 metres per second from Sudan until Abu Simbel. The dam acts as a barrier.200 kilometres downstream. in some areas by several metres a year. compared to more than 50 recorded half a century earlier. says Nile river fisheries suffered a catastrophic decline following the construction of the Aswan High Dam in the 1960s. which once flourished in the Nile delta and northern lakes.” says Osman El-Rayis. including 50. Abdallah recalls a pan-sized fish he calls “kawara” that once gathered every summer in the Nile’s back eddies and deep pools on their way to spawn.” he says. Dozens more are listed as threatened or endangered. “or create a large volume of decaying organic matter that uses up all the dissolved oxygen that fish need to survive. says many of the fish he remembers from his childhood have disappeared entirely from the river.000 tonnes of hazardous contaminants. bottom-scouring moon fish is now rarely seen in the river. then is almost stagnant (further north). a snub-nosed fish that was captured and nurtured but never eaten. Fishermen say the plump. and preventing millions of tonnes of silt and organic matter from reaching the lower Nile. And polluted. And the once ubiquitous Nile minnow. according to the environment ministry. Research conducted in the 1970s found that aquatic biodiversity in the four Nile-fed Delta lakes in Egypt had decreased significantly. Over 4.” The impact is felt over 1. Without sedimentation. professor of chemistry at Alexandria University. assistant professor of biology at the American University in Cairo. devastating fish stocks. and African bony tongue.” she says. So there is no flow Fishing on River Nile in Luxor.200 square kilometre reservoir behind the High Dam. is poured into the lower Nile each year. disappeared from the lower reaches of the Nile in the last 40 years. Similar patterns were found in nearby Lake Burullus. Egypt. “The main reason is the change in environment. the 5. fisheries director at the Lake Nasser Development Authority. In Lake Nasser.12 BUSINESS DAILY | Tuesday April 2. “The dam helps regulate water better. “The High Dam was built to control the flood season so as to have more consistent agriculture. Anecdotes from the fishermen who inhabit the banks of the Nile today paint a different picture. which had become exceedingly brackish. The coastal erosion has allowed the sea to advance into a series of shallow lakes at the mouth of the Nile. including the elephant fish. including the sacred Oxyrhynchus. Surveys by the National Institute of Oceanography and Fisheries (NIOF) identified 34 species of fish in Lake Manzala.” he says. which can kill them directly. warns Olfat Anwar. “The current ranges from zero to 0. Juvenile fish are extremely susceptible to pollution.200-year-old relief in the Tomb of Mereruka in Sakkara depicts the staggering array of fish that once inhabited the Nile River and its wetlands. Researchers say most of the fish resources in the river have disappeared in the past 40 years due to overfishing. impeding the reproductive cycle and migratory routes of many fish species. It has also allowed predatory marine fish to invade spawning and nursery areas. Nile jewel cichlid. because there is almost no nutrient flow within Lake Nasser.” Grubich explains. the Nile delta is receding.5 million tonnes of industrial effluent. Justin Grubich. Ancient Egyptian fishermen with linen nets haul in their bounty. poisons aquatic life in the river and concentrates in the lakes at its mouth. AFP . populations of many fish species have declined to critical levels. The pollution. which also includes agricultural runoff and untreated sewage. a Nubian village elder. is now restricted to a few locations near Aswan. Researchers comparing historic fish collection records estimate that as many as 35 of these fish species. Lethal levels of water toxins may have already extirpated the jewelfish. Ibrahim Abdallah. “We haven’t seen them for many years. 2013 NEWS INDEPTH Ra≥e fish species dwindle as human activities take toll on the Nile basin ENDANGERED BY CAM MCGRATH Almost half of valuable fish depicted in ancient records are extinct in Egyptian waters and dozen more threatened A 4. but downstream there is no replenishment of soil and nutrients (to support aquatic life).” Almost half of the Nile fish depicted in ancient reliefs are now extinct from Egyptian waters. “Many varieties of fish are gone and the few that remain have been overfished. “One summer we found they had all disappeared. which moved in large schools in the shallows. killing freshwater species unable to tolerate the higher salinity.

At least a dozen Egyptian fishing vesoperates from a cluster of ports at the mouth of sels have been attacked or hijacked since 2005.pense and were only released after Egyptian cies has distracted people from the plight of authorities paid the hefty fine.” Fisheries consultant Alaa El-Haweet coneffect. But the figEarlier this month. loans and said it was prepared to The next boom is likely to be EXECUTIVE. After Dubai’s expansion plans are striking in that creating them at a cost of hundreds of millions they are being announced while the emirate is of dollars. Emirates NBD. boosting Dubai’s population Since then a string of state-owned and priabout 50 per cent by the end of this decade and vate firms have said they are reviving projects pushing it deeper into a range of industries. state-owned property firm Nakheel still many years away from working through sold about 70 per cent of the land. profiting from growth in industry and trade Apart from a few facilities such as a villa in a large region surrounding it. “Clashes are more Madani Ali Madani. but the journey In May.” he says. partly because fiBut Dubai’s ruler. imprison us. based In December. He said from around the world. lands: last month state-backed Meraas HoldFlorence Eid. “Since it the jou≥ney the≥e opened about 10 years ago EgypDozens of fishermen have been held for ransom. say boat Annual production from Egypt’s marine capture fisheries has remained around 125.Egyptian fishermen and wounded two others plies.the leg when Yemeni gunmen stormed aboard fishing on fish stocks. but unsustainable fishing practices. Four of the boat’s 12 crew members were seriously injured. a fisherman was shot in ures conceal the impact of pollution and over. they were to be embarking on another wave of growth during one of the emirate’s most spectacular projects. travelling parpollution. by the military. . and come coast of Egypt was kept closed fish in Libya. fierce. But we must Egyptian fishermen say the Egypt’s shallow coastal waters “alwestward journey along the most barren. “We can catch more fish in when their boat entered Tunisian waters. Many com. has grown. such as fahaka (Nile pufferfish) and Egypt’s Foreign ministry has intervened binny (barbel). they have thrived. chief executive of Londoning said it would spend $1. “But some have actually been strengthened timates. Nile perch and tiger and humiliated during the nine months the fish grow to monstrous size. “The economy now appears to be than 200 tiny. Hotel industry consultancy STR Global esweaker than assumed. “It’s a yan companies but don’t operate under the delicate balance. and a park 30 per cent But in some ways. CHIEF countries in Africa.500-kilometre coastline. Standard Chartered estimates $48 billion of bonds and loans will mature between 2014 A little over three years after a corporate and 2016.” Four kilometres off the coast of Dubai. spent months We can catch mo≥e “For years. Sheikh Monancing will not be as cheap and plentiful as hammed bin Rashid al-Maktoum. fisheries expert at likely to escalate when a foreign-flagged vesEgypt’s General Authority for Fisheries Re.which was licensed to operate in Yemeni waing boats are licensed to operate in Egypt’s ters. rather than on the ability ment including the world’s largest shopping of its real estate market to suck up money. g≥owth India. imp≥ison us. especially trawlers. just a few kilometres from Nakheel’s were set back by the crisis and shown to be archipelago. making a living has never been more but points out that many of the seized boats dangerous. that’s where the trouble begins. inness hub for the surrounding region. man-made islands bake under the sun. wheel.000 motorless vessels ply the coun“Competition over fishing territory is try’s 2. More than 4. AFP .IPS REUTERS Dubai gea≥s up fo≥ next.” Ayman says. that Dubai hoteliers plan to operating base for businessmen from around add 19. or worse. had attempted to ram their shrimp trawler Mediterranean waters and 120 in the Red Sea. the western in dingy foreign prisons. announcing Growth will depend more directly on services plans for a huge tourism and retail developthat Dubai provides. says Ayman ‘the Anchovy. Turkey and Djibouti AYMAN ‘THE ANCHOVY’. and operate not more than five The lake has also suffered from decades of kilometres from shore. from the port of Suez on the Red Sea. and this affected “All these boats are concentrated in a very the species composition of the lake. accorded. particularly sensitive to ecological changes. 2013 | BUSINESS DAILY 13 NEWS INDEPTH GROWTH from the south to the north.” where they are allowed to fish. A significant portion of an Egyptian fishing boat. In September 2012. supporting and laid out in the shape of a world map. in search of richer waters. which are suffering. and an underfunded hatchery allel to the coast until they reach Libya. But most of the debt pile it accumulated during last decthe buyers have lacked the cash or the will to ade’s boom and bust. mall. and a haven for money from cluding the largest. said some aspects of Dubai. But to get there they must cross member on an Egyptian trawler. cruise boat they insist to work near shore. a Libyan patrol boat opened fire on there is risky. mothballed during the crash or launching new ones. looted its equipment production now comes from remote fisheries and cargo. the fishermen had to buy food at their own ex“The apparent success of a handful of spe. which it will serve similar functions as Hong an archipelago of resorts and luxury housing Kong and Singapore in Asia. Another 40.” limited area. such as its role as a relatively safe financial centre. Moody’s Invesbe emba≥king on tors on its role as a tourism and busiService downgraded its credit anothe≥ wave of ratings of three Dubai banks. and sweep away its nets.” and a beach club. China and fast-growing It cited concern about problem FLORENCE EID. 2010. Madani claims “not more than 10 Egyptian and the loss of a seemingly insignificant spe.detained and their boats impounded. faced pirate attacks.” Decades of overfishing have left wo≥se. Some of this debt estate projects and battered balmight have to be restructured a The economy ance sheets.000 commercial fish. the TuniMEMBER OF EGYPTIAN TRAWLER “Fishing is very difficult in Egypt sian coast guard shot dead two and often doesn’t cover the cost of fuel and sup. thei≥ coast gua≥d have travelled beyond to Malta.as far as the Gulf of Aden. attracting anglers Egyptian crew spent in Libyan custody. But we into Libyan territory.Tuesday April 2. ARABIA MONITOR cut the ratings further. the bank said in a But it is laying the groundwork now appea≥s to research report. unable. signalled it was during the excesses of the last decade. Egyptian crews driven are captured without any nets further afield in search of fish have in the water.sel is involved. “It’s become a high stakes game. Catfish. Libya (and other countries).000.” he says. for another economic boom. but under fire from coast guard vessels. fishermen. structured debt at state-owned Dubai World Dubai is still littered with relics of the disaster. where piracy is a real tion. go ahead with development plans. o≥ Libyan territorial waters. based on its contacts with companies in the last few years. We know their coast guard can the ‘Eagle of the East’ after it allegedly drifted sink our boat. the next boom could ribigger than London’s Hyde Park. metric tonnes for nearly a decade. modest economic boom and spice trading days of the Arabian Gulf. one of 16 fishermen arrested Yet a few species of fish have not only survived. “We evolving for millions of years and have de. or tells IPS. Freshwater bodies are ing to ministry records. says AUC’s Grubich. “All of these species together have been “They are repeat offenders. Built five years ago.” Meanwhile. must find fish to support our families. the world’s tallest tower. including about $10 billion of redebt crisis drove it to the brink of default. We know tian boats. And programme. and took its crew hostage. in the form of unfinished real and Nakheel. and when you take out one umbrella of government regulations in order of the players… it tends to have a cascading to avoid paying taxes on their catch.” Sami Ibrahim. but rather poor distribu.” says El-Haweet. CREW of cat-and-mouse. more gradual. to secure the release of their crews.boats” are responsible for 90 per cent of the sovereignty violations. Plans even include more man-made isfrom food processing to diamond trading. over 100 hotels. is ≥isky.” The Red Sea is equally perilous. during the opening ceremony in Dubai on January 4.almost a third of the current number which it has enjoyed since the pearl fishing of about 63. and Most incidents go unreported. saving them is deemed a low priority. Four species of tilapia in 2010 when their boat crossed into Libyan inhabit the lake and support a healthy com.6 billion to build based research and advisory firm Arabia an island housing the world’s largest ferris Monitor. and extra-territorial waters. Fireworks explode around the Burj Dubai. including its role as an in the industry.found that they work on behalf of private Libveloped a food web. years . a push for growth in November. more she said.’ a crew can sink ou≥ boat. or shot and killed.000 captains. for Egypt’s commercial marine cedes that some Egyptian crews fish illegally. “Because they are not commercial fish. the islands are empty.waters told local newspapers he was beaten mercial fishery.” Madani told IPS. The “sea rage” incident was sparked after Competition has increased as Egypt’s fleet local fishermen claimed the Egyptian vessel.” Grubich explains.” sources Development (GAFRD) says the probThe search for fish has taken Egyptian boats lem is not overfishing. val the last one. second time. “Some neglect and mismanagement that resulted in have the ability to travel further out to sea. the Nile River on the Mediterranean Sea. abused by authorities. others.find fish to suppo≥t North African coast has become ou≥ families mercial fishing vessels now journey an increasingly dangerous game as far as Malta.” Hundreds of Egyptian fishermen have been But conservation action is desperately need.” Anwar in cases where boat owners are unwilling. The vast majority of Egypt’s fishing fleet threat.000 new hotel rooms in the next few the region and as a centre for entrepot trade.” he says. Dubai is laying groundwork for another economic boom. cies can collapse complex food chains.

The opposition in South Africa and regional analysts have asked why a South African military training mis- South Africa is facing queries about the country’s military training mission in the Central African Republic where it became directly entangled in an internal conflict. the defunct Ssese Gateway beach landing site and Guda landing site in Entebbe. The project targets to enhance food and nutrition security. as well as half a billion dollars from the African Development Bank and assistance from the European Union. which are considered as crops of strategic importance for Africa. near Tamper Landing Site in Entebbe. Maharaj said South Africa’s involvement there stemmed from calls by the African Union in the mid-2000s for African states to participate actively in moves to maintain stability and contribute to capacity-building in the central African state. They say the presence of the 400 South African troops was covered by a 2007 bilateral defence accord with Bozize. Scientists say the initiative will help narrow the yield gap facing Africa’s strategic crops . rice. said he would review resource deals signed by the previous government and promised to step down at elections in 2016. “I had woken up at around 7am to go fishing and found many young fish killed and floating near Tamper fish factory landing site.” Mr William Odhiambo said. Last year it eliminated subsidies on 95-octane gasoline. of unrest triggered by a political row Any deal with the IMF is likely to over the extent of his powers. Hadidi said the number of tourists in February was 845. Hadidi. . “We want to participate and benefit from the knowledge of the colleagues in the region. cassava. The unrest of the past two years has driven away tourists whose spending accounted for around a tenth of GDP before the uprising.000. an official said. tomorrow for talks with the governHe added that the country was still ment on a $4. and is focused on maize. threatening Egypt’s ability to buy in supplies of wheat.” he said. points to Africa’s importance to Glencore. a 12 per cent increase compared with a year earlier. uranium. though small for the world’s largest diversified commodities trader. media reports that Egypt opening of thei≥ was seeking aid from Arab The most populous Arab country has been labou≥ ma≥kets states Libya and Iraq. which has a history of coups and revolts. already delayed several times. rebel leader Michel Djotodia. the highest grade available. The government is working on an economic programme where it plans to cut back on subsidies of fuel. Djotodia was responding to questions about resource licences awarded to Chinese and South African firms by Bozize. and wheat. vest this year meant Egypt Spokesman Alaa would use locally-grown El Hadidi added that wheat in the place of the Egypt would not seek commodity that would any emergency loan Egypt seeks to otherwise have been imfrom the International Monetary Fund and boost investment ported. and share our ideas. ruled out an emerAn IMF delegation will arrive in Egypt gency loan. Zuma would be accompanied at the summit by his ministers for foreign affairs. Zuma’s spokesman Mac Maharaj said. The South African leader was invited by Chadian President Idriss Deby. 2013 REGIONAL NEWS Cairo signed deal with Fund last November but postponed final ratification in December IMF team to visit Egypt tomo≥≥ow fo≥ talks on loan cerns over power cuts and long queues at petrol stations. chair of the 10-nation Economic Community of Central African States. A Glencore spokesman confirmed the move but declined to disclose the price tag of the deal. Masood Ahmed. visited Cairo on March last November but postponed final 17. and fuel.14 BUSINESS DAILY | Tuesday April 2.8 billion loan. Zuma to join summit on Cent≥al Af≥ican Republic South African President Jacob Zuma will attend a summit of central African heads of state in Chad tomorrow which will consider responses to the rebel takeover in Central African Republic.” of political upheaval.” he told reporters. which has yet to be finalised.REUTERS Sudan’s President Omar Hassan al-Bashir will visit his long-time foe South Sudan for the first time since its independence this week. 2013. uranium and oil. though local media reports have said the plan. as suggested by the IMF. Maharaj told Reuters there was nothing unusual about the South African role in Central African Republic or Zuma’s participation in the extraordinary ECCAS summit in Chad. AFP measures. Opposition groups have been regularly calling protests against President Mohamed Mursi which have often degenerated into violence. The African neighbours agreed this month to resume cross-border oil flows and defuse tensions that have plagued them since South Sudan seceded in July 2011 following an agreement which ended decades of civil war. JUBA Bashir visits Juba for the first time since secession An anti-government demonstration in Port Said on February 22. saying the Fund would continue ratification in December in the face talks aimed at agreeing possible financial aid. Reserves of foreign currency have fallen to critically low levThe IMF said last week a technical delegation would visit Cairo in the els. He added that indications of a higher hareasing a deep economic crisis. of which it is the “first days of April”. “Egypt seeks to boost investment seeking a loan from the from these countries and Fund to ease economic EL HADIDI. a very sensitive issue at a time when Mursi is facing protests over his management of the country. world’s biggest importer. Bashir had originally planned to visit Juba a year ago but cancelled the trip. and it raised fuel prices in many sectors last month. director of the President Mohamed Mursi’s govIMF’s Middle East and Central Asia ernment initialed a deal with the IMF department. to join the extraordinary ECCAS summit in N’Djamena on April 3. An IMF deal will unlock billions of dollars in further support for Egypt. and oil. . Hadidi said. with some fishermen increasingly getting worried over allegations of poisoning. South African media reports have suggested the soldiers were defending South African mining interests in a country rich in diamonds. cementing new deals on oil and border security between the two countries. Shortages of subsidised diesel have paralysed transport in parts of the country as the Egyptian pound has lost nine per cent of its value against the dollar since late last year. LONDON Glencore’s Pacorini makes first Africa acquisition Glencore’s warehousing and logistics unit Pacorini has made its first move into Africa. a governable to buy essential imports. The fish poisoningclaims have been on since February last year. breaking into a major growth region for its parent with the acquisition of South African logistics group Access Freight. a statement which appeared to be a blow to South African aspirations to maintain a role in Central African Republic. sion in Central African Republic became directly entangled in the internal conflict there. . GOVERNMENT an opening of their labour strains after two years SPOKESMAN markets (for Egyptians). and to the bolt-on deals that are likely to be top of the list as the acquisitive group finalises and digests the $32 billion takeover of miner Xstrata. but they appear to have reached peak levels early last week when unknown fishermen used poison to kill hundreds of fish species at random. ment spokesman said on Sunday. Araby said this would include $1 billion from the World Bank in the fiscal year that begins in July. seeking to allay public conrequire Egypt to commit to austerity BY ULF LAESSING BRIEFING DAR ES SALAAM AfDB to fund Tanzania agriculture projects The agricultural sector in Tanzania is set to benefit from the African Development Bankfunded initiative known as the Support for Agricultural Research for Development of Strategic Crops (SARD-SC). SA media reports have suggested that soldiers were defending South African mining interests in a country rich in diamonds. On Friday. South Africa is facing questions about its role in Central African Republic after 13 of its soldiers were killed there last weekend as they fought alongside government troops trying to prevent rebels from ousting President Francois Bozize from power. could be pushed back to January. Central African Re- public’s new president. state security and defence.count≥ies and an “speculation” repeated tial commodities. but officials in Pretoria have denied this. The acquisition. He added he would seek aid from former colonial power France and the United States to retrain the ill-disciplined army.REUTERS KAMPALA Poisoning scare hits Uganda fishermen There is growing panic within the fishing sector in Uganda. as “(The supply) of wheat and loaves Cairo seeks to conclude a deal vital to of bread is safe. Mursi’s cabinet has said it plans to implement a subsidised fuel rationing system at the beginning of July. faced no “crisis” in fundHe played down as f≥om these ing the import of essen.

fits and sells car accessories. Mr Gakuru is a preacher. Mr Gakuru has enjoyed the business because. I know that when you mistreat one client. “I contract respectable institutions to come every month and train my employ- ees on tips and other secrets of success in business. This way. must attend the training sessions monthly. APRIL 2. he said that he continuously goes for training and pays for online courses or read manuals.” Mr Gakuru has set shop off the main Nakuru. the journey from a small stall in the suburbs to owning property in the central business district has been without hitches thanks to personalised service that invites referrals. Proprietor Gakuru is keen on employee commitment and devotion to God. The garage fits car tracking systems and is an importer of body parts and windscreens. you will lose another 10. he told Business Daily. he adds. STRATEGY Mburu M buru Gakuru rates trust and honesty as the some of the key foundations of his garage business of 20 years. His employees are required to obey the company’s code of conduct. his employees are required to make a commitment of giving only the best service and being available for regular training in line with the market trends. he says. the proprietor says. spare parts sale. He told Business Daily: “I make sure that the standard of service offered is second to none. 2013 | BUSINESS DAILY 15 TUESDAY. He has a library in his office.nationmedia. we cannot stay in business. He also says that the service Seas Motors Garage offers is the best. Mr Gakuru reckons that the gains are higher than the cost of the courses. Pay fees “As a full-time preacher of the gospel. Trust. in the outskirts of Nakuru Town. This is how he is able to get stocks with ease and consistently. he is keen on the needs of the less fortunate.” He explains: “Without integrity and honesty. Stealing from a client’s car is one of the forms of dishonesty and those caught with their hands in the cookie can are given “immediate dismissal. has made communication easier. He offers related services like repairs. which he used to buy a few spare parts and get a space. comes in handy when a client wants to overhaul a car. feed some elderly persons here in town. Employees are trained to be honest and trustworthy. The parts business. you can be sure to get it in the same state. and if you bring your car here. and insurance. SULEIMAN MBATIAH How to succeed Proprietor writes formula for success in Nakuru While other employers are cautious about on-the-job training.com “My garage is clean. for example. with all parts intact. orders are made on the Internet. “Most insurers bring clients’ vehicles here for any repairs.” Employees have been trained in the ways of honesty. he has made business contacts in as far places as Japan and other parts of the world.Eldoret Highway and sells both new and used vehicles. No media ad He points out that although he has never used the media to advertise his services.” To achieve such a feat. I have also taken it as my responsibility to help those that I can. mgakii@ke. He has benefited from referrals more than media advertising to grow. 2013 ENTERPRISE INNOVATION: Creativity offers man piped water and gas at no cost Pages 16-17 AGRICULTURE: Farmers reap from wonder tree Page 18 daily operations and is in charge of employee wellness. well-organised. While many employers do not pay attention to training on the job. Couple builds town’s top ga≥age on t≥ust and quality se≥vice Gakuru partners with wife to leave a mark on vehicle repair business BY MERCY GAKII Mr Gakuru (left) with one of his employees yesterday. he says. the world-of-mouth marketing that continues to build his customer tree and guarantees Seas Motors Garage repeat purchase. but those who fail the test are asked to leave the company. is worth-ofmouth marketing.000. and I pay for it. those who fail the test are dismissed. Technology. For husband and wife. they used part of the money to pay for a small space in the municipal council market in Shabab area. All employees. where. which they agree to before starting to work. This is how he saves costs of travel.Tuesday April 2.” Almost at the end of this interview. This is the strength that has given him referrals. His wife operates the insurance agency wing of the business while supervising . Together with his wife Faith Mburu. but was again offered the chance. They also must be part of the morning devotions that he conducts in the premises daily. Seas Motors Garage says it increases gains. once he did when he was denied “an opportunity to deal in speed governors.” When he was starting off. which he uses for reference even during the interview. he only had a training in mechanical engineering and a capital of Sh5.” Other than following up on debtors. and I take care of my extended family too.” he adds. I pay fees for some needy students. which is cheaper than advertising in the mainsteam media. I insist on and remind our employees to always be trustworthy.” Mr Gakuru says the treatment “occasioned me to buy space to let customers know that I am qualified to offer the services.

It is all town. “I have free fuel. his home. 2013 ENTERPRISE PEOPLE | IDEAS | NEWS CREATIVITY Laban Okumu has been finding practical technica Innovato≥ b≥ings coveted u≥ban lifestyle to village To succeed in business. they would unanimously pick me on the premise that I am emergency arises. As such. a poultry farmer in Uasin Gishu County. he piped water to several acBY RAMENYA GIBENDI A Laban Okumu redirects where he farms Tilapia a cessible locations from are charge Sh2 for eve can of water. off 10. practically it is not easy to put as much disease. The only difference and built a modest resabout commitment ervoir to collect and dibetween him and an urrect water by gravity to ban dweller — he incurs LABAN OKUMU. They are employees with responsibility like any other.” says Mr Shiyuka. Yet the conadvantage of available and flexible since othsequences of treating a business the fact that casually are grave. Mr Kiunga is the author of EntrepreIn fact. which belongs to Kenchic. you must regard yourself as a faithful employee of your firm and observe all protocol of employment. Before Mr Okumu piped water into creativity. he uses a 70-kilogramme bag of commercial feeds every week. t≥eat you≥ business like a job adhere to official working schedules. sleepless nights came to mind. anywhere and you can access cash at will was offended. a flush toilet and 24a spring at the slopes on the Nandi eshour electricity supply are concarpments. Mr Okumu has also alarm system to enable Poult≥y fa≥me≥s adopt imp≥ BY GERALD ANDAE Poultry farmers in the North Rift are adopting a dual purpose improved indigenous breed of chicken called Kenbro given its low cost of maintenance and higher earnings. All one needs i of pipes and taps. The eggs from this type of chicken are in high demand with one selling at Sh30 compared to Sh15 for those from indigenous breeds and Sh12 for exotic breeds. Kenbro. where 70 per cent of the expenditure emanates from feeds. I always ask them BY MURORI KIUNGA why they think business is better than employment. most start-up entrepreneurs have to work 9am to 9pm.” h Neighbours who lik had water supplied to th for which they pay a flat of Sh100. which he considers as low compared to those who are rearing layers or broilers.” says Mr while others struggled to fetch water Okumu. are not heavy feeders and they can also feed on other types of feeds. There is no threat of dismissal or agonies anywhere. This comes against a backdrop of increased cost of production for broilers and layers variety. ban life in his rural village with my small in his homestead in Kajulu identified a spring atop in the outskirts of Kisum the Nandi escarpments ≥esou≥ces. The assumption by most people is that simply because there is money flowing into individuals running own businesses are not your business every day. unlike the exotic breeds. a challenge that gave me much more. a poultry fa his Kenbro chicken . upcountry bus station. but with the Kenbro breed. there are no warning letters or was available for them at any time and to go push to meet targets and deadlines. it can only be managed. sidered the preserve of middle class or “That’s when I knew my wife and upper class urban Kenyan homes.30am and drop her at the cash. you their employers. or leave days and remuneration. ENTREPRENEUR no monthly charges. that is now a thing of the past. Let old woman that early. FOTOSEARCH To be successful. When I told him to people around you know this in clear terms. was developed by a French company. until business grows. But women in my village were struggling one Laban Okumu will tell you otherwith the water problem. When I quit employment to start my own people to treat their business with the same firm many people including my close friends seriousness as their jobs. Kenbro keeps pure exotic breeds of she spends a lot on feeds b them off after six weeks. you don’t have to reme as one who had no job. they would earn far Immediately. 000 Mr Okumu has used from his savings to buy his ingenuity to blend the PvC pipes and cement serenity of a rural lifestyle I believe a lot can be to construct a water storwith the convenience of urage tank. home the following day at o≥ to access Set definite working hours. This has played a significant role in cutting down the cost that I incur in buying commercial feeds.” says the father His simplicity in dressing and charof eight. It is easier for a camel to go through the eye of a needle than for most employed garded me as unemployed even up to today. “I feed these birds with cabbages and sukuma wiki. He used Sh7. The challenge was that many people re. Unlike most employed people who Email: murorikiunga@yahoo. and family members regarded and treated In self-employment. According to the farmer who has 150 birds. a poultry farmer who Patrick Shiyuka. you are concocting employed. by self or by their firms. . he If you show them that you are available any time.” says Patrick Shiyuka. one night a friend ful employee of your firm and called me requesting if I could pe≥mission to observe all protocol of employpick his mother-in-law at his be out of office ment. Then an idea to help other villagers His story dates back to 2002 when he says his wife had just delivered twins struck him. water “Within a week I had and power in my home just like what plenty of water flowing in the home most town residents enjoy. In social meetings of waiting until the end month if there was something to be Neve≥ take or begging for an advance when done. people. The truth is that they are employed a recipe for failure. acter reveals little about him until he The Kisumu Water and Sewerage starts showing you around his homeCompany (Kiwasco) draws its water stead and the various products of his supplies from the same hills. start-up business owners shoulder a neurial Journey: From Employment to heavier burden of performance than employed Business. 42-year-old.effort. “For long. they felt I port to anyone. Triza Wanjiku. In a recent forum I was asked a key question Some tell me they work hard and earn lit—what was my biggest challenge in business tle money and they feel if they put the same after quitting employment? effort in their own work.” he says.16 BUSINESS DAILY | Tuesday April 2. we had registered numerous losses as a result of high cost in maintaining broilers or layers. When employed people tell me of their desire to start a business. The water trolled from his home. and they feed on them so well. call a taxi since I too report to work early. two kilometres away. according to the stakeholders.com and needed plenty of water in an area where villagers had to walk two to bathroom installed with a three kilometres to fetch water from shower. his homestead. Mr Shiyuka notes that Kenbro chicken. without off or leave days. wise. then with no done as demonst≥ated plumbing background. he had tried sinking a Three well-tended fish ponds at well to no avail so he converted the 90the entrance to his homestead introduce you to the imagination of this feet hole into a septic tank for his modern bathroom and toilet. I tried to solve Often I get into trouble when I try to conit then but later realised it affected almost all vince them that this is hardly the case because self-employed people and like an incurable whereas business is more than doing what they do. ers have to get permission from you don’t have To succeed in business. to ask fo≥ must regard yourself as a faithIn fact. not necessarily commercial ones. hours in the morning evening to avoid wasta “I believe a lot can be strated with my small r about commitment. The Never take advantage of the fact argument was he and his wife have to report to work early and that you don’t have to ask for perit would be inconveniencing to wake up the mission to be out of office or to access cash.

y farmer at Kapchegenya village in Uasin Gishu County with bro chicken are improved indigenous breeds.Tuesday April 2. Yet in all this.5 kg in seven weeks. During the world economic recession of 2008-2009. enterprise development and economic policy. but says the high initial investment cost is a huge deterrent for many. According to Humphrey Mbugua. the African economies surprised the world with sterling performance. which he sells. while the returns are growing each second. JARED NYATAYA “I use not less than Sh64. Ms Mwangi who keeps 300 birds uses a 70-kilogramme bag of broiler mash daily that costs Sh3.” says Dr Mbugua. is broken or someone diverts water. 2013 | BUSINESS DAILY 17 PEOPLE | IDEAS | NEWS ENTERPRISE BUSINESS GROWTH cal solutions to the various challenges of rural living despite having no formal training About his work He used Sh7. Kenbro is a hardy breed. given the potential it portends. “With good management. take an appropriate insurance cover. or after three weeks of brooding it can be managed on free range with minimal supplementary feeding and be ready for consumption or sale after 10 to 14 weeks. compared to hybrid chicken and can be farmed free-range like the indigenous birds. Businesses are running as usual and the peaceful elections preserved the economy as no losses were reported. Mr Okumu has built himself a biogas plant that has the potential to supply his two wives with 12-hour continuous gas supply. adding that they start laying eggs at five and a half to six months and can attain up to four kilogrammes. according to Dr Mbugua.” he observes. He is rearing fish in three fishponds. it makes sense to do business in Af≥ica A cooking stove that uses biogas from cow dung. And of course our politics is getting sanitised by the day as demonstrated last week. the growing and resilient economies are a wonder to the whole world.” he says. he says.000 to buy pipes and build a tank that now supplies water to his home from a spring. he says. noting that the production ability of this breed is near a hundred percent. which he says mature after six to seven months. Africa is attracting investment from all over the world as opposed to aid. n be done as demonll resources. It makes great economic sense to do business here. “I also have modified this ordinary charcoal iron box to use gas in ironing although I have the option of solar power. minimise your cash balance at the shop and maximise the physical security at the premises. He says he would like to help everyone in the rural areas use biogas as the raw materials are readily available. rgibendi@ke. And while neighbours and visitors alike marvelled at the inventiveness of Mr Okumu. and it must remain attractive to the insiders. he found another use for the constant supply of water — he ventured into fish farming by constructing three fish ponds with a combined population of 2. While a few investors and entrepreneurs were fearful and closed shop. But the economy has not just survived the elections. The electoral process has been associated with violence in the past. This. “I am thinking of increasing my ponds because what I have hardly satisfies the many traders who flock to my home when I harvest. He has improvised an alarm system to detect illegal water connections or tampering with his piping. Kisumu. This is because the cost of commercial feeds has gone up and s of broilers says s before selling s. the pressure levels will be distorted thus setting off the alarm. The post-election violence of 2007 only magnified an existing problem and gave it the attention of the international community. “When the pipe breaks. Mr Odhiambo is the Managing Consultant of Elim Consulting. Mr Shiyuka collects 149 eggs daily. To do business around this season. is that they do well with any type of commercial feeds. Mr Okumu mastered the art of fish breeding and no longer buys fingerlings. The 2012 results by companies are still attracting investment. high quality meat that is very popular with consumers. Dr Mbugua says the breed matures faster than local birds with proper feeding. Besides all the creativity of Mr Okumu who by his own admissions has no formal training in any field. a majority of us continued making money. Instead he sells them to villagers who are slowly taking to fish farming.” he says. The question in many people’s minds was: what if it gets ugly and my business gets affected? Political risk in Kenya is real. However. Political risk in Africa is getting smaller by the day. He heads a 10-man live-band where is the lead guitarist. it has prospered during the process. Another advantage of this breed. OWITI ia and mudfish. political risk is not a deterrent to business in Kenya or Africa at large.870. afternoon and stage.000 fish. Supreme Court judges during the hearing of the just-concluded Presidential election petiton. FILE . the best protection to your business in any politically unstable area is to remain relevant in the community you are working. which conducts training. Depending on what the farmer wants. JACOB OWITI illegal connections or tampering with the piping. It is all .” says Ms Wanjiku.000 on feeds alone. I believe Kenyans learnt the hard way the importance of peace after 2008. He says he gets plenty of gas from cow dung from his three cows and believes people who keep huge herds of cattle can get much more gas and save on fuel and the environment. was necessitated by the ever-shrinking fish output Mr Okumu washes his hands in the shower he installed in his home. The alarm is set-off when the pressure levels falls below certain levels. He has built a biogas plant that supplies cooking gas in his two homesteads. the bird can be managed to produce eggs or meat. JACOB OWITI om where villagers every 20-litre jerry ter is centrally conme. In the process. liked his idea have o their homesteads flat monthly charge ds is to foot the cost also improvised an ble him detect any from Lake Victoria that increased demand for the commodity that he sells to fish mongers. WILLIAM ODHIAMBO cts water into one of his fishponds in Kajulu village. The NSE 20 Share Index is bullish and demand is building up. After attending a few seminars on fish farming. “I make and service all the guitars myself. Despite political ≥isk. even before 2007.nationmedia. ast week. He sells water to his neighbours at Sh2 for a 20-litre can and Sh100 per month for a permanent connection. he heads a 10-man live-band where is the lead guitarist while his brother plays the bass guitar. advisory and research on finance. whether high or medium yield. even flew away.com L ≥oved indigenous b≥eed of chicken this type of breed that I keep is a heavy feeder. Out of 150 hens.” says Dr Mbugua. Kenya is attractive to outsiders.” says Mr Okumu while demonstrating how it works. While most people in the ru- ral areas rely on firewood and charcoal for fuel. This informed the wait-and-see attitude among the business community in the just-concluded elections. “Kenbro lays more eggs than indigenous chicken and has lean. this breed is the best for farmers given their resilient nature. there were billions of shillings lost and some businesses never recovered. the whole country held its breath as we awaited the judgement of the highest court in the land. technical advisor Kenya Poultry Breeders Association. it can achieve 1. When managed as a broiler with commercial feeds. He keeps Tilapia and mud-fish. Further. opening for two ng. soft.” he explains.

timber users are experiencing a serious shortage of hard wood like camphor and mahogany. he says.000 seedlings at his Kiandu home in Nyeri. one of the driest areas in the country. says that the unfortunate thing was that the tree.XINHUA Exotic sh≥ub seedling sets Nye≥i flo≥ist on path to ≥iches BY BONIFACE MWANGI When George Mutahi Kiranga visited a friend in Nairobi. It’s a conifer with shallow roots. leaves and fruits are good fodder for livestock and especially in the dry season when herbage becomes scare as grasses and shrubs dry up and become scorched.500 and Sh3. “For the last four years. he gave him one. he came across a tree seedling that resembled cider. which he sells to his customers at between Sh3. It takes long to mature and produce seeds but can be bred using propagation techniques. The Mukau tree (Melia volkensii) is mainly grown for its timber. “If the new county government would buy stock from us and involve us in landscaping. formerly ICRAF.com . Saw millers coming from far have flocked our region looking for the tree making its farm gate price to skyrocket. . The prices of Mukau tree are usually good with timber fetching more than four times higher compared to exotic tree species like cypress.000 shillings while taken to longer distances especially those seriously affected by the logging ban.” says Mr Kiranga. which he says is a guarded secret so that nobody “steals” his idea. At harvesting time. Mr Kiranga. ease p≥essu≥e on fo≥ests W A single mukau tree will grow to between six to 10 meters in height while laterally expanding to 25 centimetres in diameter. saw millers have found an alternative deciduous tree growing in many dry areas in Kenya and the rest of East Africa. the biggest problem with this species is its propagation constrains.” says Beatrice Nduda. the tree had become I decided to do more propagation and increase their number for sale. At the moment. With the rising popularity of the tree as a source of timber. Mature seeds can be collected all the year round and a mature tree can produce up to 300kg of fruit annually. the fruits have high moisture contents (about 40 percent) and must be dried. Research has also shown that the tree has other important attributes. Fa≥me≥s ≥eap f≥om wonde≥ t≥ee. Since his friend had two. It exhibits poor germination performance. “It is a hardy and well adapted tree for dry parts with good produce in form of timber and fuel wood products. which grows up to 10 feet high. researchers at the World Agroforestry Logging in Sabor Forest in Keiyo District. It also grows fast with a rotation of 10 to 15 years. the Mukau contains compound toxic to insect and in these marginal areas has been traditionally used to control ticks and fleas. the tree has been the great source of income for me and it has enabled me to meeting my family’s daily basic needs.18 BUSINESS DAILY | Tuesday April 2. which is durable and termite resistance. A shrub. When he later visited the person he sold the tree to.7 per cent national coverage through banning of timber harvesting.000. High temperatures and a mean annual rainfall of between 300 and 800 mm characterise them. He says he developed a new way to propagate the tree. its biggest problem is that it is limited by height and rarely produces good quality timber. which distinguishes it from other cider trees and makes it possible to be grown in a flower vessel. Provides timber for building and furniture industry. He discloses that the business earns him more than what he used to earn when he was a councillor. The tree is found at altitudes of 3501. The move by the government to ban logging in public forests has resulted in a shortage of valuable timber used in building and the furniture industry. The tree grows up to ten feet tall forming a cone shape with shallow roots. Ethiopia.700 metres above sea level. With the government actively encouraging in forest re-growth to increase the paltry 2. acacia species provides most of the fuel wood requirements. Research has also established that extracts of Mukau possess larvicidal and growth inhibiting effects on insects. The business. Local inhabitants have to resort to other type of building materials like stone and bricks to construct their dwellings. Its price ranges from Sh600 to 1. Mr Kiranga says: “The growth of these trees is very slow so they are not common in the market. These areas straddle Kenya.000 and 5. This increased demand has also added value to marginal areas in the country. an added benefit for the arid parts. says the 72-year-old man. Researchers at the Kenya Forestry Research Institute in collaboration with the Japan International Cooperation Agency have developed practical seed cracking techniques to improve water penetration and germination rates. with landscaping of their compounds. Like the neem tree (Azadirachta indica). The entrepreneur says that given an opportunity to landscape the Nyeri County. He urged the friend to give him one of the seedlings for planting in his compound but little did he know that with time.” he says.nationmedia. In a country where three-quarter of the land surface is dry.” He says the tree is used to beautify homes and drive ways. they also do not grow very tall thus suitable for decorating places.” Four years later. JARED NYATAYA Centre report that they can support cultivation of Mukau with a lot of benefits to the communities. However. mostly home owners. Obtaining wood for furniture and building in dry parts of the continent is one of the biggest challenges. he would change the face of the town by making it a unique. with high mortality in young seedlings. precious wood products have become scarce. Mr Kiranga also offers advises those who want to design for themselves on the steps to follow when planting and how to attend to flowers and the trees. The tree is also planted around homestead to provide firewood and shade. Grown is dry parts of East Africa. Mr Kiranga has nurtured more than 2. The flowers of the tree also provide excellent bee forage. its seeds are fetching as much as Sh200 as farmers scramble for them.000 depending on the size. poor in supporting arable agriculture. Mukau has some properties against some tumour cell lines. 2013 ENTERPRISE PEOPLE | IDEAS | NEWS AGROFORESTRY Loggers find alternative source of timber following ban on exploitation of forest resources ith the government’s effort to conserve gazetted forests. mwangib@ke. In most dry lands regions in Africa. Contains toxic substances that are used to control ticks and fleas. While the soils in these areas are Benefits of Mukau tree Timber from the tree is used in making of log hives. Tanzania and Somalia. we can turn Nyeri town into a golden town just like some cities in Italy — the origin of the tree. And to attract more customers. This made him to come up with an idea of propagating the plant whose origin is Italy for sale. In human medicine. Its twigs. “It was difficult to breed the tree yet it was so beautiful.000 in most of the dry areas but has also been sold at Sh2. does not produce seeds early and therefore it was difficult to multiply it. commonly known as Golden Italian Cyprus. And if one had to wait for the tree to produce seeds. “I had almost given up in nurturing the golden Italian cyprus but when I saw how beautiful About the plant Golden Italian Cyprus is an exotic tree whose origin is Italy. has enabled him to earn a living and support his family. The florist also helps his customers. “There has been an increased demand of Mukau for the last few years. It is grown in homesteads to provide firewood and shade. It has also been used against the desert locust (Schistocerca gregaria). a farmer in Kitui. making other counties envy us. it is also a choice timber for the making of log hives. The timber is used in the building industry as well as furniture.” he says. then it would take many years since it takes a lot of time to mature and produces seed. it would be a source of his livelihood. who is the proprietor of Gadernia Trees and Flowers Nursery in Nyeri town. I thought of trying propagation and it succeeded. he sold the tree his friend had given him at Sh3. Most soils in these areas are sandy. Its striking beauty and scent caught his attention.” says Abdi Zeila. a researcher with the Nairobi-based World Agroforestry Centre. he found out that the it had become very beautiful and this is when he decided to nurture the ones he was left it and got the urge to propagate more for sale since they were not common in the country. growing of a good quality hard wood has brought hope to the efforts of emancipating inhabitants in these regions from poverty and other social maladies. Mr Kiranga adds that after propagating the four seedlings. clay and shallow stony soils.

last year. leaving only five candidates in the race to succeed Mr Lamy. NSE under the Growth rebranded last year from and Enterprise Market Muramati Tea Sacco and Segment were not feasihas since targeted growble due to stringent rules Fo≥ a coope≥ative ing towns for expansion. 2013 | BUSINESS DAILY 19 MONEY & MARKETS PRICES I RESULTS I DATA Tough ≥ules fo≥ce Unaitas to shelve NSE listing plans BY SAM KARANJA PEFORMANCE Co-operative society opts to focus on expansion strategy following strong financial results in 2012 can be accommodated.048 members by December 31.com Sea≥ch fo≥ WTO di≥ecto≥-gene≥al ente≥s c≥ucial stage BY ALLAN ODHIAMBO The race for the World Trade Organisation’s (WTO) top job has entered a crucial phase as consultations begin to shortlist applicants who best qualify for the position. The first round of talks will be concluded by April 9. he said. It was founded by a others while new members are always small group of tea farmers in Murang’a welcome. She left three years later to join the United Nations Environment Programme as deputy director and UN assistant secretary-general. posal to list on the Nairobi Securities The Murang’a-rooted Sh4 billion asExchange (NSE). Jonathan Fried and the Trade Policy Review Body Joakim Reiter. John Kwadwo Kyerematen are the only candidates from Africa hoping to succeed Pascal Lamy as director-general of the WTO when he retires in August after completing two four-year terms at the helm of the global trade body. For stock exchange registers. listing on NSE. “The loan book also grew tremendously during the same period. rising from Sh1. They will be picked in three rounds with only two making it to the final one. samkache@gmail. “In respecting the dignity of the candidates and the members nominating them. members who nominated candidates will be informed of the outcome immediately after each round and before the rest of the membership. Mr Mwangi asked the Capital Marnalists on the sidelines of the society’s kets Authority (CMA) to engage with annual general meeting in Murang’a stakeholders and see how the societies town last Thursday said that Unaitas Nation Media Group chief executive Linus Gitahi (centre) with Unaitas Sacco chief executive Tony Mwangi (left) and chairman Joseph Ngaai at the co-operative society’s annual general meeting in Murang’a last week. that is set last week’s AGM that plans to list on the to move its headquarters to Nairobi. the outcome of this first round of consultations will be reported to all members at an open-ended meeting of heads of delegation to be held as soon as possible following the conclusion of the first round of consultations. while addressing jourconstant. has served as a civil servant for 26 years.” he said in his report. Unaitas strategy this year. He will be assisted by chairpersons of the Dispute Settlement Body. This process will be repeated after each round of consultations. which have susissued and authorised stocks remain tained a number of banks in the area. “The outcome of the consultations shall be reported to the membership at each stage.” said Mr Gitahi. in 1993 and has slowly grabbed a large shares can change hands daily but the share of tea accounts. presence.” Mr Bashir said. since it re-branded a few months ago. so as to ensure transparency. In total it will pay out Sh36 million to shareholders from a Sh179 million surplus. Mr Mari Pangestu of Indonesia and Brazilian Roberto Carvalho de Azevêdo have also been nominated for the WTO job. it will always have chalwill always have lenges as the share capiHe said that the firm challenges as the had opened branches in tal is unlimited unlike a company which has auOngata Rongai and most sha≥e capital is recently Nakuru town as it thorised share capital. SAMUEL KARANJA had seen a huge growth of membership. Homestretch Others eyeing Mr Lamy’s position include Mexico’s Herminio Blanco. .90 dividend per share of Sh10. would focus on intensive loan recoveries. Accordingly. it ties in addition to the 15 Unaitas already operates. UNAITAS SACCO tives’ register is open for Unaitas was launched existing stakeholders to on July 17 last year to faciliincrease holding without buying from tate the expansion. Unaitas is set to pay Sh0. “The CMA should provide the Unaitas Sacco has announced that it structures where we can list and rewill proceed with its ambitious expanmain compliant with other regulators sion plan even as it ditched the prolike Sasra (Saccos Societies Regulatory Authority). Ms Amina Mohamed of Kenya (pictured) and Ghana’s Trade minister Alan Talks to shortlist the best candidates for the WTO top job begin today. She joined the public service as a legal adviser in the Ministry of Foreign Affairs and rose through the ranks to the position of PS in the Justice ministry in 2008.3 billion. Nation Media Group CEO Linus Gitahi who was the chief guest during the event challenged the Sacco to remain on upward trajectory and continue to serve its clients diligently. mostly from outside Murang’a. In short. and Ahmad Hindawi of Jordan. CHIEF EXECUTIVE. Sacco chairman Joseph Ngaai said that the strong performance last year would boost Unaitas’ expansion plans. a law graduate from the University of Kiev. Africa like other emerging market countries is seeking to have one of their own in charge of the Genevabased trade club. The firm witnessed a 137 per cent increase in members from 47. Unaitas says total assets grew from Sh2. Four candidates would be expected to withdraw in the first round of talks and another three in the second round. Costa Rica’s Anabel González. accounting for 39 per cent rise. Unaitas hails from the same roots as Equity Bank in Murang’a. “The result acts as a strong base for Unaitas to position itself for an ambitious financial and operational performance in 2013 where we have projected a 60 per cent rate growth in assets and 70 per cent in turnover. An informal meeting between Mr Bashir and heads of delegations from the competing countries on March 13 agreed that the selection be conducted in three rounds with only two candidates making it to the final round.” he told Business Daily. He said that non-performing loans had fallen by more than 10 percentage points.9 billion in 2012. Mr Mwangi.533 as at December 31 2011 to 113. New Zealand’s Tim Groser. inclusiveness and full participation in every step of the process.TONY MWANGI. Kenya’s nominee. Chief executive Tony Mwangi said at sets financial services firm.Tuesday April 2.5 billion to Sh2. and an efficiency rate of 65 per cent. after the top jobs at the IMF and the World Bank went to a European and an American. “I urge you to remain focused in your vision and also balance both short term and long term plans. a coopera. Mr Mwangi said that society to four more branches would “For a cooperative pa≥ticipate in any be opened in selected counsociety to participate in any listing on NSE. South Korea’s Taeho Bark. by the regulator.” unlimited aims to establish a national he said.” said Mr Mwangi. A time table on the selection process shows that WTO General Council chairman Shahid Bashir will today commence consultations aimed at helping members build consensus and gradually trim the number of applicants for the position of director-general until a final candidate is appointed not later than May 31. Equity has within a decade catapulted itself into the top five bank rank — from a non-bank institution — perhaps providing incentives for other institutions to follow suit. reduction in portfolio concentration risk and loan book growth.” Mr Bashir said.8 billion in 2011 to Sh3.

. The debt to buy a stake at another company but the ininterim DPS fell by 40 per terest jumped quite high. The Nairobi Securities Exchange (NSE) 20 Share Index gained 147. Markets watchers say the reduced political risk which coincided with a strong return to the market of foreign investors will lift the bourse and bridge last weekend’s rebound. Safaricom.83 points.20 BUSINESS DAILY | Tuesday April 2.” said Mr Musau.55 billion from previous week’s Sh2.13 per cent on the previous week to close the four-day trading week at 4860. Equity turnover rose by eight per cent in the week to Sh2. Investors will also be keen to take advantage of fairly priced stocks. The high. ABC Capital reckoned that EABL which has made a foray into new markets of South Sudan and the Great Lakes Region while aggressively protecting its East African turf. The dominant brewer is banking on low beer penetration.63 million.” cent to Sh1. Others say that attractive dividends that have been declared by several companies will help keep demand up as investors try getting into the registers before they close. The main reawhich is a mature company and is exBY GEOFFREY IRUNGU 10% 13% 10% 2. the net profit also fell by 14 per cent to “Fall in dividend per share (DPS) by Sh3.061 3.55 billion from previous week’s Sh2. The stock hit a high of Sh320 with a low of Bank. taking into account the rose by 10 per cent. at Standard Investment they claim.6 per cent to Sh355 while Jubilee Insurance gained 15. which announced a Sh10 per share dividend and a bonus issue last week saw its share price rise by 10. parent firm of the company. also rebounded by 3. a share instead of the Sh311 average a senior research analyst price it traded last Friday.13 per cent on the previous week to close the four-day trading week at 4860.” said Eric Musau.204 2.nationmedia.541 Growth% company’s stock is over-priced by Sh100 son for the reduced profit is the finance costs that more than tripled to Sh2.9 points registered on March 12. growing middle class and the new markets to grow. recent financial results and the expecta“Our analysis shows the share is tions for this year. The share price is receding and expected to continue dropping.” said Mr Nderi. “If the share is overvalued this year. Selling and distribution costs Sh100 a share. the ing expenses. said though EABL price was high. ABC Capital said the firm was eying growth from the middle-class.5 million.50 as the comsaid Mr Musau. Index gains The Nairobi Securities Exchange (NSE) 20 Share Index gained 147. was to buy In the six months to December 2012.8 billion. The company’s DPS fell by 40 per cent to Sh1. at least Sh100 higher than the price it The price should be about Sh200 should be valued at and we have recommended a sell. there was room for growth.36 billion on the back of strong foreign inflows.” said Mr Mutai.83 points largely on account of large caps.” said Standard Investment Bank research note.022 billion. well as the fierce competi“The firm took a lot of RESEARCH ANALYST tion in the industry.755 221% -14% East African Breweries bottling plant in Ruaraka. “You will have buyers such as foreign investors who are looking at the longterm but still want to get the share. Kenya. Sh310 last Friday. Nation Media Group.2 per cent ahead of its 2012 earnings announcement this month. it may not necessarily be the case in future because some investors may decide to look at the long term. especially in view of the ongoing investments. girungu@ke. a dealer at Tsavo Securities.com Retu≥n of fo≥eign investo≥s to sho≥e up bou≥se afte≥ poll BY CHARLES MWANIKI Analysts were betting on a stock bull-run as the market resumes trading today after a long Easter break and conclusion of the presidential elections. the largest capitalised company on the NSE. foreign investor inflows jumped 125 per cent weekon-week to Sh1. even as the net revenues 40 per cent is not good for the brewer went up by 10 per cent.” said ABC Capital in a note to investors. Caleb Mutai.633 16. “The risks and fears associated with the elections have gone and with investors showing willingness to come into the market we are seeing the recovery of the bourse. EABL recorded the highest foreign inflows at Sh433.23 points or 3. analysts say. Noting that EABL was equally pressured by smaller brewers. while Kenya Airways recorded the highest foreign outflows at Sh19.50 as it sought to conserve cash for its capital expenditure. But they may have to wait for four to five years before realising a good return on their investments. 2013 MONEY & MARKETS EABL stock to come unde≥ p≥essu≥e ove≥ debt SHARES Analysts say the beer brewing EABL Performance Firm was weighed down by high costs including servicing a loan from the parent firm. pushing down its net profit by 14 per cent in the half year to December 2012.” said ABC Capital.4 per cent tosix shillings per share as foreign investors turned net buyers on the counter. Six months to Dec312012 Sh-bn Net Revenue Cost of sales Selling and distribution costs Net finance costs 30. “Following a three-week lull. But Mr Musau said investors who are buying while looking four to five years down the line may still buy the share. “Underdogs in the name of Keroche and Heineken are taking off pebbles from its most profitable region. Stock analysts say foreigners are driving equities after the mid-month profit-taking saw the bourse drop from the four-year high 4985. pany sought to conserve cash for its capital expenditure amid huge financThe loan provided by Diageo. Equity turnover rose by eight per cent in the week to Sh2. Sh100 highe≥ than company as well as capital Analysts point to the fall expenditure were likely to in dividend per share (DPS) the p≥ice it should continue to eat into the and the expected payout as company’s profit. be valued at ERIC MUSAU. Serengeti Breweries.1 bilEast African Breweries Limited (EABL) lion during the six months compared may be currently overvalued by over to 2011. Suntra Investment Bank market analyst Johnson Nderi said the market was bound to experience renewed investor confidence after the political risk occasioned by the fiercely contested elections dissipated with the Supreme Court judgment that Uhuru Kenyatta was validly elected.36 billion. FILE pected to increase its dividend payout. is under Net profit SOURCE: COMPANY REPORTS threat from SAB Miller.23 points or 3.Ou≥ analysis shows Mr Musau said the est price reached in the last the sha≥e is at least heavy financing costs of the 12 months is Sh325 .

meaning a majority of surveyed firms are pessimistic about the future. . and it comes days after official figures showed Japan’s factory output slowed in February. which seemed to have blame for the increased abated until political griddownside risks to the lock in Italy and the crisis he argued.” rates.Tuesday April 2. sending the benchmark Nikkei 225 stock index soaring in the past four months. He is with board member Jorg Asmussen. major policy announcements for the time being The European Central Bank will hold for the time being.” Shimoda said. has stoked speculation that the BoJ will launch a new wave of aggressive policy measures Cautious step . dubbed “Abenomics”. . allowing the markets to enjoy an exwe believe no more change to the key tended period of calm. “First of all. Schulz argued that a rate cut was also unlikely because it would take one of the ECB’s other key rates. Those figures represent the percentage of firms saying business conditions are good minus those saying they are bad and are a key measure used by the BoJ in formulating monetary policy.REUTERS Uncharted territory Newedge Strategy analyst Annalisa Piazza predicted the ECB chief would use similar wording again this time. The 0. His vow to beat dethat tend to weaken the yen. in their view.” said Piazza at Newedge Strategy. 2013 | BUSINESS DAILY 21 MONEY & MARKETS GLOBAL Bank changes tack in new effo≥t to fix the eu≥ozone c≥isis ECONOMY ECB says will not cut rates or make Fo≥me≥ Mo≥gan Stanley wo≥ke≥ launches fund A former fund manager at Morgan Stanley Asset and Investment Management launched a Japanese equity longshort hedge fund on Monday. pumped more than Schulz said. the central bank has in core countries and the pa≥liaments slashed its key interest periphery to behave.AFP Manufacturers’ capital spending plans remained in the negative territory. Commerzbank’s Schubert pointed out that both Draghi and other governing council members have suggested that a negative deposit rate could bring with it “severe consequences”. many Japanese fund managers have set up new hedge fund companies in the region’s hubs in Hong Kong or Singapore. although the nation squeaked out of recession in the last quarter of 2012. said his long-short fund — the UMJ Galleyla Fund — has the capacity to take in up to 20 billion yen ($213 million). which has already received start-up capital from two foreign investors. AFP 17-country area “is likely to be owing to the political trends in Italy and Cyprus. Falling prices are bad for the economy because they encourage consumers to put off spending in the belief goods will be cheaper in the future. er. CHRISTIAN SCHULZ. Japan’s overall economic picture remains unsteady. “A sudden move would be seen as a sign of panic” and would only serve to erode confidence still further. flation. “The ball remains off from cutting rates or announcing in the court of national governments any other policy moves at its meeting and parliaments. The ECB has never hesitated to act gerous precedents enforced by credias firefighter in the long-running critor countries in Cyprus are mostly to sis. “This would take the ECB into un- Japan indust≥ies ≥egiste≥ fi≥st g≥owth in th≥ee qua≥te≥s Confidence among large Japanese manufacturers improved in the first quarter. analysts said. at least until recently when elections in Italy ended rates is likely as the governing council in a political stalemate and Cyprus’s appears to regard a rate cut as a less parliament rejected the terms of a effective tool.2 percent expansion in GDP on an annualised basis in the quarter to December was welcome news for Abe. “I chose to stay in Japan because I have my family here. as Tokyo works to reverse years of limp growth in the world’s third-largest economy. Shimoda said his fund has been gaining attention from foreign investors after expectations for Prime Minister Shinzo Abe’s reflationary fiscal and monetary policies helped boost Tokyo shares by more than 40 per cent since November. The fund. The BoJ’s latest Tankan survey showed sentiment at minus 8 for big firms between January and March from minus 12 three months earlier.” Shimoda said.” chartered territory and should thus be an emergency measure only.AFP Built confidence It was a rare launch in Japan in the past year. forcing many domestic pension funds to review their portfolios in hedge funds. The ball ≥emains economy. tional creditors.” the expert argued. the latest decline looks likely to keep its gunpowder dry in sentiment indicators across the Eyes will be on ECB chief Mario Draghi (right) when he holds his regular monthly news conference on Thursday. But they were cautious in their capital spending plans and the figures remained in negative territory. ECB watchers say the central bank Furthermore. but Galleyla decided to stay in Japan. betting on interest from overseas investors after a recent surge in Tokyo stocks. but “the prevailing consensus was to leave rates unchanged. “I’ve built my confidence as I was able to produce healthy investment results after managing this fund for the last three years. highlighting the weak state of the economy and underscoring the size of the government’s task in sparking sustained growth. a central bank survey showed Monday. the founder and president of Galleyla Investment. governments to solve the eurozone’s “The failure in Italy to form a government. 0. Markets have cheered Abe’s policies.” But the uptick was not as strong as some observers had expected. since it currently stands at zero per cent. The economy “has come out of the worst period”.” said Berenberg Bank this week so as to keep up pressure on economist Christian Schulz.” she said. entirely at Thursday’s meeting. a mantra led by his boss Prime Minister Shinzo Abe. Pushing the deposit rate into negative territory is potentially risky because while it could spur banks to lend money rather than paying a penalty to the ECB. “A refi rate cut cannot be ruled out The moves appeared to pay off. The deposit rate is the rate which the ECB pays out to banks for parking their money with it. talks up his plans to stoke the economy and reverse years of falling prices which have crimped private spending and corporate investment. whose first few months in office have seen renewed optimism over the state of the economy which has suffered growth-sapping deflation for years. into negative territory.3 Analysts are almost BANK ECONOMIST trillion) into the banking unanimous that additional rate cuts are not on system to avert a credit the cards.3 billion-loss cover-up scandal of Tokyo-based asset manager AIJ Investment in early 2012 rocked the fund industry. Haruhiko Kuroda. Still. while speculation over monetary easing measures has helped push down the value of the yen. after the $1. she said. we don’t expect any changes in policy. the ECB may raise the of national Throughout the cripressure on governments gove≥nments and sis. said Takeshi Minami. the level of the key rate is not the main problem But while all eyes will be on ECB chief Mario Draghi to calm the markets but the fact that lending rates in the once again when he holds his regular periphery do not reflect the low policy monthly news conference on Thursrate. I also felt it was more efficient to stay here to conduct research and to be close to companies. . and these can hardly be tackled through lower rates. on its deposit facility. helping the country’s exporters. “There is no doubt that the mood has improved thanks to the weaker yen.” he said. day.” Schubert said. Draghi conceded that a rate cut had in fact been discussed. Tsukasa Shimoda. but also the potentially dancrisis. In recent years. we suspect the current economic scenario has not deteriorated enough to convince more governing council members to support the idea of a cut. it would also reduce profitability and force banks to raise lending rates they charge customers to make up the difference. softening demand and hurting producers. he said. BERENBERG 1.” said Commerzbank tough bailout deal with its internaeconomist Michael Schubert. “In a nutshell.” in Cyprus sent shockwaves “By allowing market in the cou≥t through financial markets uncertainty for a bit longonce again.0 trillion euros ($1. “However.75 per cent since July. is expected to reach capacity within one to two years. crunch and sought to The ECB has held its benchmark tame borrowing costs in worst-hit refi rate steady at an all-time low of countries by buying up their sovereign bonds. At the last meeting in February. The fund will slowly close subscription when its asset size approaches capacity. The results marked the first improvement in three quarters with companies expecting a pick-up in sales and profits. economist at Norinchukin Research Institute. The Bank of Japan (BoJ) holds a policy meeting this week as its new governor.

00 -3.2 7.212.5% 0.6 172.50 87.0 1.888 1.00 0.13 22.42% 11.00 -45.14 67.063.604 36.0 4.8 12.00 264.70 3.31 0.00 30.86 95.000.08 SOFTS SYMBOL SYMBOL COFFEE SUGAR NO5 COCOA SUGAR COFFEE WHEAT COTTON NO2 MAIZE PALM OIL RUBBER CORN SOY BEANS COCOA CURRENCY CURRENCY USD USD USD USD USD USC EUR MYR JPY USD USX USD LAST LAST 148.17 1055.4 100.03% 10.240 1.0% -0.6 11.9% -0.42 17.260 2. BANK LTD TICKER SAB SJ AGL SJ SOL SJ MTN SJ SBK SJ AMS SJ ANG SJ TLW GN IAM MC DANG NL OCIC EY ATW MC NB NL BCE MC ETEL EY VODE EY BCP MC LAC MC ADH MC SNTS BC GUARANTY NL ZENITH NL CGI MC GUINNES NL CIB EY FIRSTBAN NL ABUK EY EABL KN SAFCOM KN MCB MP EMOB EY TMGH EY PGH TU ETIT BC IBTCCB NL SBM MP BCBL KN BT TU EQBNK KN KNCB KN SECTOR BEVERAGES MINING OIL & GAS TELECOMMUNICATIONS BANKING & FINANCE MINING MINING OIL & GAS TELECOMMUNICATIONS BUILDING MATERIALS CONSTRUCTION BANKING & FINANCE BREWERIES BANKING & FINANCE TELECOMMUNICATIONS TELECOMMUNICATIONS BANKS BUILDING MATERIALS REAL ESTATE TELECOMMUNICATIONS BANKING & FINANCE BANKING & FINANCE REAL ESTATE BEVERAGES BANKS BANKS CHEMICALS BREWERIES TELECOMMUNICATIONS BANKING & FINANCE TELECOMMUNICATIONS REAL ESTATE HOLDING COMPANIES-DIVERS BANKS BANKS BANKING & FINANCE BANKING & FINANCE BANKING & FINANCE BANKING & FINANCE BANKING & FINANCE COUNTRY SOUTH AFRICA SOUTH AFRICA SOUTH AFRICA SOUTH AFRICA SOUTH AFRICA SOUTH AFRICA SOUTH AFRICA GHANA MOROCCO NIGERIA EGYPT MOROCCO NIGERIA MOROCCO EGYPT EGYPT MOROCCO MOROCCO MOROCCO BRVM NIGERIA NIGERIA MOROCCO NIGERIA EGYPT NIGERIA EGYPT KENYA KENYA MAURITIUS EGYPT EGYPT TUNISIA BRVM NIGERIA MAURITIUS KENYA TUNISIA KENYA KENYA PRICE PRICE CHANGE* MKT CAP P/E SHARES IN US$ US$MN ISSUE MN 52.48 -0.8 28.2 32.4 12.0 29.9 8.38 18.9 7.00 3400.0 -47.935 16.44 NET CHG 0.33 105.2 1.040.7 11.836 19.1 790.6% 2.6% 0.90% 9.9 187.06 44.89 67.03 0.04 26.32 13.7 9.6 7.00 2583.44 153.9 per cent yearon-year.3 10.07 6. surpassing the central bank’s range target of 5.824 2.0 23.687 315 1.52% 9.00 3.535.623 2.4 26.396.KE Unit Trusts Effective date: 26th March 2013 MONEY MARKET FUND ANNUAL RATE OLD MUTUAL COMMERCIAL BANK OF AFRICA STANBIC ZIMELE BRITISH-AMERICAN AFRICAN ALLIANCE KENYA SHILLING FUND SUNTRA INSURANCE COMPANY OF EAST AFRICA MADISON AMANA CAPITAL GENCAP HELA FUND CIC FIXED INCOME FUND AFRICAN ALLIANCE KENYA STANBIC FIXED INCOME FUND B1 STANBIC FIXED INCOME A STANDARD INVESTMENT BANK GENCAP HAZINA FUND CIC BALANCED FUND OLD MUTUAL / TOBOA ZIMELE BRITISH-AMERICAN BRITISH-AMERICAN MANAGED RETIREMENT FUND SUNTRA INSURANCE COMPANY OF EAST AFRICA CFC SIMBA FUND MADISON ASSET AMANA GENCAP ENEZA FUND CIC EQUITY FUND OLD MUTUAL OLD MUTUAL EAST AFRICA FUND COMMERCIAL BANK OF AFRICA BRITISH-AMERICAN AFRICA ALLIANCE KENYA SUNTRA INSURANCE COMPANY OF EAST AFRICA STANDARD INVESTMENT BANK STANBIC DYER & BLAIR MADISON ASSET AMANA GROWTH GENCAP HISA FUND CIC BOND FUND OLD MUTUAL BOND FUND BRITISH-AMERICAN DYER & BLAIR SHARI’AH COMPLIANT INVESTMENTS GENCAP IMAN FUND CURRENCY SH SH SH SH SH SH SH SH SH SH SH SH CURRENCY SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH DAILY YIELD 8.42% 9.08 0.4% -0.0 2.25 17.44 36.9 904.1 1. Food ingredients quickened Indonesia’s inflation in March to 5.6 180.061 1.52% 8.2 11.80 41.49 .1% -0.86 31.30 -1.67 12.1 17.76 1.93 109.00 1.664.78 104.2% 0.02 0.970.9 261.129 7.880 10.00 52.0 14.435 19. 2013 MARKET DATA Commodities Agro Commodities Market Early Morning wholesale commodity prices for 28th March 2013 COMMODITY CEREAL Dry Maize Green Maize Finger Millet Sorghum Wheat LEGUMES Beans Canadian Beans Rosecoco Beans Mwitemania Mwezi Moja Beans Dolichos (Njahi) Green Gram Cowpeas Fresh Peas Groundnuts ROOTS & TUBERS Red Irish Potatoes White Irish Potatoes Cassava Fresh Sweet Potatoes HORTICULTURE Cabbages Cooking Bananas Ripe Bananas Carrots Tomatoes Onions Dry Spring Onions Chillies Cucumber Capsicums Brinjals Cauliflower Lettuce Passion Fruits Oranges Lemons Mangoes Local Mangoes Ngowe Limes Pineapples Pawpaw Avocado Kales OTHERS Eggs Unit Bag Ext Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Ext Bag Med Bunch Med Bunch Ext Bag Lg Box net Bag Bag Bag Bag Bag crate Bag Bag Bag Bag Bag Sm Basket net Dozen Lg Box Bag Bag Tray Kg 90 115 90 90 90 90 90 90 90 90 90 90 51 110 110 110 99 98 126 22 14 138 64 13 142 38 50 50 44 39 51 57 93 95 126 25 13 13 54 90 50 Code 20 19 41 42 48 4 5 7 6 35 46 45 27 44 29 30 43 31 9 2 3 13 32 22 23 11 14 12 8 10 17 25 24 16 21 36 18 28 26 1 15 47 Nairobi 3200 3600 5500 5400 Mombasa Kisumu 2850 4900 8100 3600 3600 2400 7200 4000 Nakuru Eldoret 2600 1800 5200 2700 3600 2500 2250 6720 4050 3500 Food p≥ices up Jakarta An Indonesian vendor arranges fruits at a market in Jakarta yesterday.702.90 -7.00 2147.00 4810.1 17.241 2.95% 9.9% -2.00 14565.26% 9.1% -1.881 7.61 0.0% -1.2 12.95 35.089 741 1.99 100.10 17.7% -0.5 8.GO.4 1.0 5.2% 1.75 -3.3 1593.3 4.00 23.5 88.1% 2.10 -2. MINISTRY OF AGRICULTURE.00 12.8% 1. EMAIL MARKETINFO@KILIMO.0 19.20 7.29 0.7% -1.06 177.460 1.60 0.5 18.20% 7.64 593.247 29. AFP 4200 6200 6200 4200 7200 6500 4000 1700 13000 2400 2500 2200 4300 1700 480 560 3000 5200 700 2200 3000 1900 2800 2000 2800 2600 3800 1900 1900 800 700 910 2200 2800 1300 300 6000 6000 7200 6300 4500 1750 13200 1750 2300 1600 3200 1900 500 700 3250 4800 850 1500 1520 2250 4000 1760 1950 1800 6000 3000 2400 2500 1000 600 960 1000 3250 1200 360 7500 7200 7200 8000 2500 9400 4000 4000 1600 1800 900 300 300 3500 4000 600 1100 1100 1500 1200 5000 4500 4500 8100 6300 6300 2700 9900 3300 3300 2600 1200 500 350 2000 3500 750 1200 3800 4000 3000 8100 8100 9000 11250 6300 2040 10800 2600 2400 1600 700 1000 630 1200 5200 650 1000 Africa investor performance index 28th March 2013 COMPANY SAB MILLER ANGLO AMERICAN SASOL MTN GROUP STANDARD BANK ANGLO PLATINUM ANGLOGOLD ASHANTI LTD TULLOW OIL PLC MAROC TELECOM DANGOTE CEMENT PLC ORASCOM CONSTRUCTION ATTIJARIWAFA BANK NIGERIAN BREWERIES BANQUE MAROCAINE DU COMMERCE TELECOM EGYPT VODAFONE EGYPT BANQUE CENTRALE POPULAIRE LAFARGE DOUJA PROM ADDOHA SONATEL SN GUARANTY TRUST BANK ZENITH BANK CGI GUINNESS NIGERIA PLC COMMERCIAL INTERNATIONAL BANK FIRST BANK ABU KIR FERTILIZERS EAST AFRICAN BREWERIES SAFARICOM LTD MAURITIUS COMM.73 142.398 3.0 173.0 13.98 149.07 179.4 16.3 10.56 4.92 4.5% 3.0% 0.98 19.66 103.00 0.39% SELL 100.1% 0.6% 1.80 35.4% -6.4 11.00 350.50 0.36 0.792 32.822 1.00 510.468 2.5 28.00 1.0 250.49 137.136 4.656 10.03 7.299 6.28 122.598 1.8 40.55 909.2% -2.10 0.1 1.6% 11.00 0.2% 86.9% 7.917 2.00 5.81 -0.00 NET CHG CHG NET 0.562.88 0.0 673.00 0.386 3.50 1.00 317.2 1750 3000 2600 900 2000 1800 650 1200 1400 1500 300 3800 2600 2200 600 400 2500 2400 800 290 2850 3500 3200 800 910 1080 1600 500 310 SOURCE: MARKET RESEARCH AND INFORMATION.45 Global Commodity Prices 27th March 2013 METALS & MINING SYMBOL SYMBOL CURRENCY LAST LAST CURRENCY USD USD JPY JPY USC JPY JPY USX JPY CNY 1132.75 9.9 879.00 0.3% -2.17 0.861.93 182.1% 2.09 129.39 6.0 384.151 773 1.5 per cent.89 71.69 0.89 GOLD 100 OZ GOLD SILVER SILVER PLATINUM HG COPPER PALLADIUM PLATINUM HG COPPER ALUMINIUM ALUMINIUM NATURAL GAS OIL GAS USD 188.052.279 992 3.00 0.50 -0.58 147.00 100.3 10.18 163.81 55.6% -2.9 10.55 13.00 0.1 10.04 144.67 4.75 23.391.4% -0.5 8.41 329.64 12.52 0.431.89 12.5 101.014 15.8 2.62 0.2 12.2% 6.2 31.94% EFFECTIVE 8.86 104. the statistics office said.10 4.6 2.68 100.44 155.10 121.45 1.43 1.6 9.161 3.33 150.55 0.32 173.25 2.035 1.1 14.00 4159.9 597.431.707.1% -2.39 0.632.0 84.896 9.75 58.6% 4.92 70.4 9.22 105.9% 1.0 47.1 38.87 104.41 9.884 4.6% -2.0% 0.45 SYMBOL BRENT CRUDE LIGHT CRUDE GAS OIL NO 2 HT OIL LIGHT CRUDE GAS NATURAL LIQUID PROP HEATING OIL BRENT CRUDE CURRENCY LAST USD USD USD USD USD USD USD USD USD 72.92 137.5 9. BANK MOBINIL T M G HOLDING POULINA GROUP HOLDING ECOBANK TRANSNATIONAL INC STANBIC IBTC BANK PLC STATE BANK MAURITIUS BARCLAYS BANK KENYA BANQUE DE TUNISIE EQUITY BANK LIMITED KENYA COMM.5 315.474.1 8.0% 2.6% -4.1 240.3 1.0 100.6 OIL & GAS NET CHG CHG NET 14.44 0.22 BUSINESS DAILY | Tuesday April 2.00 0.0% -0.36 2.4 42.702 4.3 3.4% -0.00 343.2 3.00 0.8 17.12 19.5 205.4% -1.0 17.29 3.00 25.55 12.370.90 526.0 30.01% BUY 9.750.

1.26% Marshalls Kenya 12.85 28.24% Sameer Kenya Kakuzi 5.27 6.00% April ‘12 Price to earnings ratio (p/e) Earnings per share Dividend Yield April 13 6.80 0. At the weekend.08% Sensex Mumbai 18.34 % April ‘12 Price to earnings ratio (p/e) Earnings per share Dividend Yield April 13 18.2680. The Aussie fell 0.88% Kenya 80.00% LUSE All Shares Zambia 4.90% April ‘12 April 13 April ‘12 Price to earnings ratio (p/e) Earnings per share Dividend Yield April 13 3.37% April ‘12 Price to earnings ratio (p/e) Earnings per share Dividend Yield April 13 -2. The euro has major support around $1. The official Purchasing Managers’ Index reached 50.34 5.25% April ‘12 Price to earnings ratio (p/e) Earnings per share Dividend Yield April 13 3.0393.744.22% Dividend Yield Tracking the markets: Benchmark Index (Latest Data) Africa TUN Main Index Tunisia 4.3 per cent to $1.86 1.95 . 037 0.95 1. just above a four-month low of $1.87 . while the Aussie dollar was tripped up after data showed a slower rebound in Chinese factory activity in March than expected. jumped over 100 basis points in the wake of the Cyprus bailout. The yen firmed across the board as a few large purchases of the Japanese currency made a splash on a day with low liquidity and few participants.0. slipping 0. Appetite for Italian debt has been hurt by the deadlock in the country’s politics since inconclusive elections a month ago.000 euros.8 per cent retracement of its July-February rally.20.37 + 0.” said Daisuke Karakama. AGRICULTURAL AND AUTOMOBILES Sasini Kenya 11. when it hit a 14-month high of $1. yen fi≥me≥ The euro sagged yesterday to approach a four-month low on concerns about the spillover from Cyprus’ bailout terms.183.02 7.78 2.50 0.69% April ‘12 Price to earnings ratio (p/e) Earnings per share Dividend Yield April 13 .2791. Cyprus also reminded people of all the problems that dissuaded people from buying it before: low growth.16 0.93 6. unemployment and so on.00% April ‘12 Price to earnings ratio (p/e) Earnings per share Dividend Yield April 13 5. while Italian borrowing costs reached their highest since November at a 5-year bond auction last week.2 percent to $1.50% Xetra Frankfurt 7.30% Borrowing costs “It wouldn’t be unusual for the euro to drop to $1.00% Limuru Tea Kenya 460.54 +0. The common currency has slid steadily since February.38% CASA All Shares Morocco 9. The euro started the new quarter with a whimper. 2013 | BUSINESS DAILY 23 MONEY MARKETS Eu≥o nea≥ new low on fea≥s ove≥ Cyp≥us.75 1.2. seen by economists as one of the next potential candidates for a euro zone bailout.02 19.2750 hit last Wednesday.05 .REUTERS Price to earnings ratio (p/e) 93. 860.95% April ‘12 Price to earnings ratio (p/e) Earnings per share Dividend Yield April 13 2. 397.165.00% Rea Vipingo Kenya 20.70% DJ Industrial New York 14.Tuesday April 2.00% Car & General Kenya 23.36% FTSE London 2.00% JSE All Share Johannesburg 39.9 in March. stopping short of market expectations of a jump to 52 from February’s 50.42 84. a 61.00 5. But a break there could open the way for a test of last year’s low near $1.30% EAAGARDS Kenya 25. Antipodean currencies were also off on Monday after underwhelming Chinese manufacturing data.17% April ‘12 April 13 April ‘12 April 13 April ‘12 April 13 April ‘12 April 13 April ‘12 April 13 World Nikkei Tokyo 12.75 -4. market economist at Mizuho Corporate Bank.68 4.00 0.84 .1. President Giorgio Napolitano summoned 10 “wise men” to propose a series of urgent measures that could be backed by all parties.20 + 0. but the move offered little hope of overcoming the deep political divisions. well above the initially touted cut of 30 to 40 percent.37% April ‘12 April 13 April ‘12 April 13 April ‘12 April 13 April ‘12 April 13 April ‘12 April 13 .31 + 0.72 8.77 + 0.05% CASE30 Index Egypt 5.1.60% Year to date Year to date Year to date Year to date April ‘12 Price to earnings ratio (p/e) Earnings per share Dividend Yield April 13 6.05 .06 4. .25.11. reinforcing the common currency’s weakness.91 + 0.3711.63 % Kapchorua Kenya 120.74 Earnings per share 2.578.50 3.431.88 0. with most markets closed for Easter holidays.43 25.40 0.00% Williamson Tea Kenya 228.00 0.1.36 4. Borrowing costs in Slovenia. 835. 795. the Cypriot central bank confirmed that major depositors in Cyprus’s biggest bank would lose around 60 percent of savings over 100.00 0. At the weekend.

10 6.00 40.00% #DIV/0! 1.00 8.89 Mar’ 12 Mar’ 13 TUN MAIN INDEX PineBridge-27 Index Nairobi 650.500 8.30 0.00 184.00 145.50 21.29% 9.725.614 495.75 113.00 3.83 763150.00 0.00 36.300.415 1.980.11 6.49 6.356.10 3.700.000 23.95 2.27 6.50 1.90 17.05 4233296.381.52 525094.00 68.03 26.00 16.496.88% 0.124 1.496.00 22.11% 8.34% 0.00 72.98% 2.20 7.675 1.84 1.51% 42.61 9.40 14.000 362.12 11.48% 2.92% 88.00% 119.000.29 17.937.61 -510986203.25 53.464 7.64 75. CITY TRUST OLYMPIA TRANSCENTURY A.300 47.27 1.56 6.14 5.00 21.00 0.873.000 33.00 14.541.50 22.425.50 14.34 1.00 148214617.19 8605457.00 311.558 21.54 1.00 48.60% -9.200.50 80.25 355.08% 80.756.400 22.26% -11.966.50 11. 820.00 1.09 1.25% 1.00 21.440 178.296 MKT CAP.00 23.35 30.60 59.895.03 504758.21 2.00 321.83 0.700 72.22 TOTAL DIVIDEND YIELD 4.494.000.700 5.00 0.729.00 0.40 1.60 10.90 448.29% 24.00 0.30% 8.85% 2.00 48.372.10 3905884.984.00 13.500 326.00 24.83 11.91% 0.83 18.440.50 14.Chng 0.56 39.00% 0.263.STOCKS STOCKSKENGEN.83 4.36 27.200 22.179.00% 1.28% 0.05 17.361.00 0.00 -1.05% 0.71% 66.00% 2.000 298.55 3.39 9.51 1.05 32.840.73% 3.000.58 50.36% 3.364 2.000 37.00 9.63% 0.68 529527.00 0.95 53.92% 8.860.767.469.25 11.50 17.960 785.92 1328211.27% 0.52 8.99 6.342.300.50 22.30 0.426.846.31% 3.789.50 31.75 224.70 10.520.22% 2.00 126.05 7.284 3.17 11134007.51 11.000.500 1.00% -6.320 33.81 0.10 5.314 40.40 1.75 3.50 67.71 11.300 4.84% 103.000 96.57% 72.36 25.09 3445041.00 1.471.G.862.82% 0.000 387.00 35400.24 4532340.950.00 325.00 51.148 309.44 4.50 18.58% EQUITY HF KCB NBK NIC BANK STAN.11% 5.860.100 27.603.717.25 3794437.13% -2.86 6.40 3.25 1027918.52 952815.54 -1.74 7.50 0.128 81.05 47.00 20.778.496.00 14.926.23% -78.00 35.000.96 4.400 5.00% 37.00 0.40 5.255.18% -5.46 13.25 0.00 57.05 150.59% 0.50 145.335.00 12.50 10.574.68 22.336.56% 0.00% 2.41 4.100 4.000 542.706 1.25 3.777.013.59 0.99% TELECOMMUNICATION & TECHNOLOGY 34.009.44% 9.76% 4.865 630.00 0.500 1.400 766.23 31169811.69 254929.86 18.859.839.00 12.42 2925038.50 -1.049.41% -4.60 2.265.67% AUTOMOBILES & ACCESSORIES Mar’ 12 Mar’ 13 All Share Index (NASI) Nairobi 117.88 9.727.000 228.65 -21.63% -1.TO TO6667.00 19.478 182.20 1.362.83% -2.88% -10.23 -2.385.96% 6.245.92 4.000 55.00% 2.00 10.00 375.000 253.164.41 1708823.00 540.223.000 2.00 19.00 15.86 1.85 6.83% 8.372.467.96% 2.084.520.37 4900.000.05% 2.000 57.78 0.12 53.337.00 47.70% 10.36 19.EACH EACHALERT ALERTCOSTS COSTSSH5 SH5ABOVE ABOVENORMAL NORMALRATES.00 14.00 32.79 39.00 49.000 90.200 22.50 12.000.00 24.90 33.93 8.00% 0.00 -9.54 1305973.34% 11.644.50% 0.55 0.94 3423154.00 75.959.00 8.46 5.77% 52 WK LOW YTD % PRICE THIS THUR 25.00 530.106 278.00 0.45 52.00% 0.08 4.000 32.00 20.50 -4.00 310.27% 50.25 1.8 -27.88% 10.00 0.256 1.080 35.258 14.50 0.30 0.50 12.36 3.79% -1.69 0.89 High 4.47 4.25 1.096.500.17% 0.774.00 10.000.00 24.34 23.74% 95.25 41.10 417384.25 76.00% 4.83 4.000 424.000.24% 1.00 6.06 8.02 10.05 4.50 11.000.30 0.900 1.45 10.72 7.728.000.000 12.458.44 1.300 3.08 4214598.055.00 4.400 440.292.00 0.525.00 2.00% 11.15 3.05 220.31% 14.50 0.000 9.000.000 552.56 516471.00 29.48 33.60 1.00 57.G. CHART.000 MARKET UPDATES TO TO RECEIVE RECEIVE NATIONMOBILE NATIONMOBILE ALERTS ALERTS ON ON YOUR YOUR CELLPHONE.386.47 0.25 11.79 8.34 PBV TRAILING 4216801.700 10.543.60% 6.51 1.25 61.19 1.860.200 214.70 4.00 30.33 32.80 8.35 -0.75 EPS INTERIM 6 MNTH 4.40% -6.25 13.10 101.190.15% 5.00% 25. CELLPHONE.50 0.00 25.31% 153.38 652309.45 5.00 WEEKLY PRICE CHANGE 5.840 13.00% 2.00% 4.42 21.700 19.00 315.00% -15.50 224.53 10.34 3.744.543.230.17 80.89 Close 4.86 18.20 486393. RATES.702.00 9.25 8.41% 60.24 67.13 322386.74 -9.97% -0.183.855 2.20 4. 6667.75 7.05 3207103.913.514 1.403.50% 8.000 395.716.07 8.441.69 39.25 1.15% 51.50 9.000 193.344.666 10.536.174.00 6.51 0.25 34.42 92037.35 0.60 0.940.35 734524.422.91% 15.44 3.00 182.00 180.90% 1.000.00% -1.451.562 5.00 19.65 10.36% 185.085 92. CO-OP BANK COMMERCIAL EXPRESS (K) HB KQ LONGHORN NATION MEDIA SCANGROUP STANDARD GRP TPS EA UCHUMI CONSTRUCTION & ALLIED ARM CEMENT LTD BAMBURI CROWN BERGER EA CABLES Mar’ 12 Mar’ 13 Active Counters Last Counter Thu Previous Fri % Change Shares Traded EAPC ENERGY & PETROLEUM KENGEN KENOLKOBIL KPLC TOTAL UMEME INSURANCE BRITISH AMERICAN CIC INSURANCE Safaricom KCB KenolKobil Mumias Barclays 6.372.681 280.99 2183421.765.896.35 10.39 -49.541.629.00 182.58 11.15 55.50 7.80 39.567.638 220.00 4.045 175.823.39% 3.000 2.999 3.00 160.915.248.55% -0.36% 53.790 360.63% MARKET DATA DATA MARKET African Indices Indices African Name NSE 20 .14% 2.60 22.50 18.33% 1.00 280.90% 4.99 16.440 59.00 3.25 1.000.55 32.83 4.530.00 14.00 0.00 5.000.000 19.47 -18.474.11% 10.00% 16.830.091.970.19% 57.35 448.62 9863659.05 20.50 10.00 15.68% -0.86% 0.200 12.45% 113.118.82 9.25 1.850 515.44 0.00 33.50 0.000.300 6.77 1.00 67.26% -0.50 3.41% 8.000 41.02 125.04 1.25 16.69% 25.85 6.56% 71.83 8.468.38% 0.866.75 1.280 31.77% 0.25 1.63% 5.00 15.00% 0.87 39.91 -0.600 5.137.200 5.574.31 10.76% 5.75 143.67 1.35 16.481.43 3.00 2. KSHS MN.714 68.66 4.300 4.00 355.37 9064140.00 3.000.36 18509.20 5.38 15.433.00 2.10 0.612.39% Standard Grp Jubilee Centum Invest.78% 0.17 -5.89 5.33% 0.00 12.508 33.75 0.00 32.89% 3.761.00 460.00 0.922 526.55 0.44 245586.35 8.51 12.32 2.46 -0.36% Weekly Share Report Weekly Share Report Daily Share Report 52 WK HIGH AGRICULTURAL EAAGADS KAKUZI KAPCHORUA TEA LIMURU TEA REA VIPINGO SASINI WILLIAMSON TEA CAR & GEN CMC MARSHALLS SAMEER BANKING BARCLAYS CFC STANBIC DTBK 18.000 80.50 74.00 14.521.95% 5.700 176.00 3655594.163.50 17.25 34.783.440. 2013 MARKET DATA MARKET DATA MARKET DATA Nairobi Stocks Stocks Nairobi NSE 20 Share Index Nairobi 4860.25 5.531.157.50% 0.163.77 7533663.41% 4.00 21.275.00 3.500 24.443.E.64 33.87% 4.00 71.19 6.99% 0.823.100.770.742.24 33.800 263.405.200 600 413.520 934.108 265.34% 0.05 1.00 0.500 78.88 18.11 32.84% 0.75 2.498 1.82 DPS LATEST 12MNTH 1.50 37.35% 0.159.00 90.000.21 15.95 228.88% 122.38 1.02 10.505.60% 134.00 225.06 -23.298.80% 14.00 2.00 1.00 120.99 6.800 2.05 14.425.496.117.50 0.205.00 60.138.90 2.99% 7.860.000 75.10 100.808.1034936492.00 23.03 2.263.35 10.00 88.742.41% 10.700 50.00% -47.00 3.225 1.50 145.651.80 -0.75 15.00 16.75 0.00 21.00 25.40 0.95 9.612.00% 1.00% 2.60 Losers Last Counter Thu Previous Fri Net Change % Chng BOC GASES BAT KENYA CARBACID EABL EVEREADY EA K.50 10.24 33.037.000 665.76 637653.80 10.900 84.50 22.02 5.58% 0.79% 13.00 89.361.00 8.44 1.513.50 111.25 38.47 11.50 20.652 2. WANT.86 18.700 3.97% -6.71% -56.500 SHARES ISSUED MN 32.000 60.70 0.36% 72.75 42.59 1262151.65 5.343.10 0.16 Net.00 183.43 10.45 55.22 4.00 154.00 0.84 -6.17 5.514 4.00 182.56% 5.05 9.077.000 157.32 P/E TRAILING 18.88% 15.00 0.525.57% 0.393.70% 30.30 3.10 4.81% 22.393 5.86 18.22% 102.456 1.912.41 4.316.45 -0.00 41.00% 60.446 100.00 121.80 234287.Chng 30.00% 10.50 1.00% 1.918 93.424 582.951.943.25 1.50 301.50 49.860.000.013.69% 6.02 1.00 130. E.35 4.000 1.17% -0.00 5.000 29.73% 4.50 -6.00 180.321.28 2.162.25 10.270.50 33.85 226.818 9.70 34.00 8.112.80 38.00 0.6 35 1.89 Low 4.742.90 0.200 157.55% -4.00 20.00 17.60 315.58 1.48% -0.05 33.31% 43.41 0.913.53 26.00% 6.42 3.00 22.09% 55.00 3.11 -3.117.24 33.00 258.76% -2.02 75.18% 7.26% 0.623.920 469.03% Open 4.00 3.740.000 273.265 790.00 470.882.80 0.59 4349568.900 195.50 13.40 -23.94 0. .50 321.200 7.00 182. BAUMANN MANUFACTURING & ALLIED 18.034 58.50 10.340.920 123.606.00 500.00% 0.45 0.25% 1.165.45% 34.700 21.577.484 562.45 258.80 Gainers Last Thu Previous Fri Net% Counter Change Chng LIBERTY KENYA HOLDINGS 11.700 251.76% 2.615.868.093 2.45% 5.700 6.876.00 1.50 65.27 Pct.56% 146.50 0.000 16.80 14.449.98 12.020 235.906.50 20.50 7.00 13.05 5.00 0.161.00 0.22 23.SMS SMSTHE THESTOCK STOCKYOU YOUWANT.50 7.25 291. KENGEN.55 14.30 1.65% 73.06 19.275 23.77% 4.878.91 0.188.11 1.52% 3.000 2.440 14.83% 10.400 2.80 6.520.11% -4.100 8.00% 0.00 0.198.25 24.00 0.72 93.59% .60 3.55 5.25% 15.00 8.60 54.50 31.00 10.762 6.543.00% -0.00 4.87 11.00 24.719.50 14.362.924.00 148.00 0.62 6012017.00 820424.50 13.999.50 219.32 0.431.000 3.52% 1.077.75 50.762.003.914.39 1906977.55 10.117.925.24 33.845.915 5.27% 0. ORCHARDS MUMIAS UNGA ACCESS SAFARICOM Total Sameer Unga KenolKobil Transcentury 13.20% 0.88 0.100 1.066 19.10 PRICE PREV FRI 24.00 7.00 13.249.50 19.600 9.26 3.08% 0.88% 10.000 9.709.90 1.83 4.400 160.21 2.776 EPS LATEST 12MNTH 1.00% 19.312 123.10 14.25 500.500 123.00 10.75 11.00% -5.81% -19.03 3256991.32% 7.04 974507.45 9. Equity Nation Media 31.84% 0.50 -1.00 4.572 284.060 20.81% 0.00% 0.882.00 0.02% 3.420.75 1.00 4.03 2308333.900 1.42 -5.50 217.000 1.08% 0.750.419.000 10.50 66.15% 3.15% 1.00 260.100 1.600 141.873 208.625.00% 1.SHR INDEX LUSE ALL SHARE INDEX JSE ALL SHARE INDEX ALSIUG ZSE INDUSTRIAL CFG INDEX MALAWI ALL SHR DSE ALL SHR IDX NSE ALL SHARE EGX 30 IDX/d Country Kenya Zambia South Africa Uganda Zimbambwe Morocco Malawi Tanzania Nigeria Egypt Tunisia Last 4.000 2.35 5.00 24.29 5.43% -9.40 16.996.48% -5.43% 0.40 3.30 1442091.18 -11.13% 33.95 20.23% -2.00% 5.95 16.093.59% -0.599.891.496.71 6.09% 0.096 3.15% 3.00 400.335.25 0.700 24.10 1.50 86.63% 3.520.00 16.00 17.00 3.372.742.600 10.460.93 84.30% 0.00 JUBILEE KENYA RE PAN AFRICA INVESTMENT CENTUM INVEST.460.36% 0.600 83.356 210.057.200 1.567.45% WEEKLY TRADED SHARES 5.400 3.24 BUSINESS DAILY | Tuesday April 2.00 7.00% -0.750 4.15 3.000.708.80 5.00 16.049 19.500.50 20.00% 82.700 13.70% 0.50 5.265 7.775 5.84% 2.00 8.68 1.00 135.00% 2.81 0.200 40.44% 55.777.536.18% 14.000 1.000 1.58 -0.00 540.00 9.005 1.000 700.50 0.000 4.45 61.00 4.

58 55.08 13.09 87.57 54.50 12.47 1.80 4.15 2.7500 13.32 32.300 0.92 0.48 6.65 60.81 5.35 4.75 10.88 7.25 15.000.83 0.50 REA VIPINGO 21.90 0.40 48.25 13.00 4.95 SAMEER AFRICA 5.432 5.50 228.00 16.352.00 115.86 -2.54 7.00 12.26 2.0000 12.00 1.500.14 0.00 0.00 84.50 22.809.000 600.50 70.550.82 % 1Y 0.000 100.00 CLOSE 11.00 36.25 2.30 CROWN BERGER 47.33 -0.69 7.28 -14.15 9.000.33 3.50 12.75 10.51 -7.51 48.688.00 13.95 71.1140 12.08 9.00 59.00 0.967.000.98 3.50 16.580 2.00 13.909.00 0.50 14.00 13.00 EA CABLES 15.61 42.45 CAR & GENERAL 22.500 1.04 0.504.75 13.000 13.75 CARBACID INV 134.50 EA AFR BREW 311.88 -1.25 258.00 3.01 22.4960 11.06 46.79 -6.84 -0.22 5.049.1000 12.0900 12.2500 800.48 -0.0000 13.14 17.13 1.91 -8.23 12.00 25. ONE YEAR BONDS FXD2/2012/1YR FXD3/2012/1YR TWO YEAR BONDS FXD1/2011/2YR FXD 2/2011/2YR FXD 3/2011/2YR FXD 4/2011/2YR FXD 1/2012/2YR FXD 2/2012/2YR FXD 3/2012/2YR FXD 4/2012/2YR FXD 1/2013/2YR FXD 2/2013/2YR FIVE YEAR BONDS FXD 2/2008/5YR FXD 3/2008/5YR FXD 4/2008/5YR FXD 1/2009/5YR FXD 1/2010/5YR FXD 2/2010/5YR FXD 1/2011/5YR FXD 1/2012/5YR SIX YEAR BONDS FXD1/2007/6YR SEVEN YEAR BONDS FXD2/2006/7YR FXD1/2007/7YR EIGHT YEAR BONDS FXD1/2006/8YR FXD1/2007/8YR NINE YEAR BONDS FXD1/2006/9YR TEN YEAR BONDS FXD1/2003/10YR FXD2/2003/10YR FXD1/2006/10YR FXD2/2006/10YR FXD1/2007/10YR FXD1/2008/10YR FXD2/2008/10YR FXD3/2008/10YR FXD1/2009/10YR FXD1/2010/10YR FXD2/2010/10YR FXD1/2012/10YR 23-JUN-03 25-AUG-03 27-MAR-06 29-MAY-06 29-OCT-07 29-OCT-07 28-JUL-07 29-SEP-08 27-SEP-09 26-APR-10 1-NOV-10 30-JUN-12 25-SEP-06 28-AUG-06 28-MAY-07 26-MAR-07 25-JUN-07 26-NOV-07 31-MAR-08 26-OCT-09 29-MAR-10 27-DEC-10 24-SEP-12 25-FEB-13 30-JUN-08 30-MAY-11 26-NOV-12 28-JUN-10 28-FEB-11 3-OCT-11 23-FEB-09 7-DEC-09 1-MAR-10 31-AUG-10 24-APR-06 27-FEB-06 26-FEB-07 25-DEC-06 30-JUL-07 30-APR-07 28-APR-08 25-AUG-08 27-OCT-08 21-SEP-09 24-MAY-10 30-NOV-10 31-JAN-11 28-MAY-12 28-FEB-11 25-APR-11 26-SEP-11 28-NOV-11 30-APR-12 27-AUG-12 29-OCT-12 24-DEC-12 25-FEB-13 25-MAR-13 27-FEB-12 26-MAR-12 MATURITY DATE ISSUED VALUE IN MILLIONS COUPON (%) (%) THIS WEEK HIGHEST YIELD LOWEST YIELD TOTAL VALUE (%) (KSHS) 25-FEB-13 25-MAR-13 25-FEB-13 22-APR-13 23-SEP-13 25-NOV-13 28-APR-14 25-AUG-14 27-OCT-14 22-DEC-14 23-FEB-15 23-MAR-15 22-APR-13 19-AUG-13 21-OCT-13 15-SEP-14 18-MAY-15 23-NOV-15 25-JAN-16 22-MAY-17 22-APR-13 16-DEC-13 21-JUL-14 17-FEB-14 16-FEB-15 13-APR-15 10-JUN-13 12-AUG-13 14-MAR-16 16-MAY-16 16-OCT-17 16-OCT-17 16-JUL-18 28-SEP-18 15-APR-19 13-APR-20 19-OCT-20 13-JUN-22 11-SEP-17 13-AUG-18 13-MAY-19 7-MAR-22 6-JUN-22 7-NOV-22 13-MAR-23 7-OCT-24 10-MAR-25 8-DEC-25 6-SEP-27 7-FEB-28 5-JUN-28 5-MAY-31 1-NOV-32 28-MAY-35 21-JAN-41 18-SEP-23 8-FEB-21 22-NOV-21 19-FEB-18 19-SEP-19 10.78 6.80 1.50 31.00 101.25 9.15 43.86 -13.00 66.00 TOTAL KENYA 13.00 20.00 5.89 -4.0000 12.95 41.00 PAN AFR INS 56.54 -6.99 0.00 3.57 50.38 0.63 7.42 -4.994.00 23.79 1.855 11.25 12.85 KENYA COM BK 40.000 7.87 0.00 80.0000 500.26 46.8260 11.50 NIC BANK 52.23 9.84 30.25 JUBILEE HLDS 249.00 KENGEN 14.59 18.14 5.50 CO-OP BANK 16.87 3.704.787.00 20.00 10.00 101.69 2.65 46.72 101.12 18.25% 12.13 -4.17 11.00 9.045.57 45.26 -0.60 0.50 9.68 42.75 10.7500 13.76 11.90 BAT KENYA 539.86 -2.68 84.60 AVERAGE TRADED YIELD (%) (KSHS) TOTAL VALUE ISSUE NO.64 0.82 8.700 1.86 0.00 5.15 14.74 -4.60 10.00 KENYA RE 15.65 10.31 4.00 18.125.00 LONGHORN 9.94 26.00 14.71 -12.86 14.13 15.14 32.44 25. 2013 | BUSINESS DAILY 25 MARKET DATA Share Price Performance Scorecard SCORECARD AS AT 28TH MARCH 2013 NAME PREVIOUS A BAUMANN 11.75 18.00 KAKUZI 76.34 0.19 0.10 ACCESS KENYA 9.56 -7.87 0.12 39.316.000 12.41 1.90 7.67 9.636 11.50 12.48 -8.00 EAAGADS 25.81 21.33 9.70 2.625.50 -25.13 30.75 14.043.64 16.982.00 -2.0000 10.34 34.00 6.00 0.70 16.11 59.00 CENTUM INV 19.000 621.72 8.999.15 -6.00 -1.25 1.906.33 -0.69 8.00 301.99 2.420 2.00 29.00 BRITISH AMERICAN 8.970.58 -0.50 10.90 4.00 2.16 0.63 50.00 11.89 14.25 EVEREADY EA 2.590.09 25.500.00 OLYMPIA CAPITAL 4.600.7500 13.823.0000 100.500.00 13.00 -3.38 14.99 -3.22 45.102.67 21.69 0.000 5.77 2.00 14.00 BOC KENYA 101.50 12.9000 12.63 -0.22 39.62 30.00 6.00 1.41 1.00 14.8900 13.75% 8.26 0.00 NATL BANK KEN 20.50 20.87 113.90 2.093.00 11.45 448.71 2.26 32.378.00 8.88 0.70% 8.90 10.08 % 1M 0.50 32.344.99 56.08 3.04 3.998.39 14.08 20.74 3.000 463.00 9.77 8.60 LIMURU TEA 460.00 14.51 42.63 -1.00 19.45 KENYA AIRWAYS 10.038.08 0.48 43.47 5.96 30.500 25.416.50 STD CHART KEN 301.83 37.00 0.10 3.00 33.05 MARSHALL 12.00 8.00 0.05 6.75% 13 9 IFB 1/2011/12YR IFB 1/2009/12YR IFB 2/2009/12YR IFB 1/2010/8YR IFB 2/2010/9YR .00 0.67 7.70 15.00 2.32 8.00 37.94 1.82 18.828.00 540.000 97.93 42.09 33.59 18.910.00 65.25 53.00 64.04 60.25 HOUSING FIN 24.85 -57.48 50.37 13.75 10.95 6.15 -1.40 MUMIAS SUGAR 4.55 32.50 -25.Tuesday April 2.00 0.60 460.439.10 8.50 BAMBURI 218.00 -14.33 -5.83 0.8440 13.2500 13.75 13.92 -50.269.71 14.88 6.777.50 CIC INSURANCE 5.89 6.25 0.526.75 KENOLKOBIL 10.94 0.96 4.10 EXPRESS KEN 3.00 82.2500 13.70 3.5000 13.54 2.55 0.38 0.083.83 10.58 9.088.000 13.46 22.200.00 2.57 6.75 UNGA GROUP 15.98 31.300 13.88 0.35 2.000.45 41.78 75.00 12.63 3.36 -25.96 3.307 12.000 2.00 8.4390 10.87 10.02 10.26 119.00 KEN ORCHARDS 3.500.93 8.402.314.244.468.50 130.901.22 59.00 56.8440 12.78 4.000.000 12.50 4.00 3.979.44 0.5500 13.25 13.75 DIAMOND KEN 146.16 20.63 -0.10 51.61 5.00 -1.00 22.33 14.22 2.00 1.35 17.000.60 31.75 8.9400 9.11 19.50 0.7500 13.00 53.2000 4.60 196500.62 54.182.87 0.50 13.37 0.00 12.00 0.BD-FXD(SBN)/2012/7YR 30-JUN-12 CON.67 39.864 13.500.89 1.000.00 9.00 0.70 ISSUE DATE ISSUE NO.13 23.67 % 5D 0.99 13.62 -30.94 3.00 79.25% 7.75 50.20 SASINI 12.25 57.54 6.419.00 16.28 17.00 TRANSCENTURY 32.55 CITY TRUST 448.BD-FXD(SN)/2012/7YR 30-JUN-12 CON.20 ATHI RIVER MINING 67.67 4.68 2.00 17.00 0.000 10.28 21.00 EQUITY BANK 33.25 8.35 10.00 11.45 49.88 43.26 0.50 9. CONSOLIDATED BANK OF KENYA LTD MEDIUM TERM NOTE PROGRAMME CON.69 65.50 217.59 3.84 -2.00 0.000 13.00 STANDARD GRP 28.33 -4.44 0.969.17 16.44 8.33 -5.89 19.90 9.50 0.75 10.97 2.37 -2.25 TPS (EA) 54.00 0.97 5.91 30.30 8.00 1.00 -4.10 17.95 53.50 NATION MEDIA 349.87 17.08 5.096.809.80 0.98 0.00 30.568.00 8.79 12.00 CMC HOLDINGS 13.37 2.174.00 15.88 24.7500 13.72 35.50 6.90 16.83 0.00 0.00 HB 20.80 7.00 23.61 0.35 7.87 0.00 19.989.64 6.25 24.00 19.67 40.30 -2.000.00 0.00 1.9300 400.00 50.572.9300 12.7500 300.26 -0.15 10.38 -68.15 3.980.00 % 1D 0.25 12.93 8.41 -12.50 G WILLIAMSON 228.53 1.50 9.000 100.998.000 13.75 6.50 12.00 33.79 9.59 17.2000 280.23 5.76 1.5000 22.78 % 3M 0.5000 700.999.000 Weekly Corporate Bonds BONDS WEEKLY STATISTICS ISSUE DATE MATURITY DATE ISSUED VALUE IN MILLIONS COUPON (%) 1480.24 0.21 500.24 -0.75 LIBERTY KENYA HOLDINGS 10.198.07 10.00 -0.50 355.50 32.02 6.000 1.261.00 71.00 108.13 0.75 6.000 13.65 90.72 20.00 120.85 68.BD-FR(SN)/2012/7YR 30-JUN-12 SHELTER AFRIQUE MEDIUM TERM UNSECURED NOTES FR 1/2011/3YR 11-JUL-11 FXD 1/2011/3YR 11-JUL-11 FXD 2/2012/3YR 2ND TRANCHE 17-DEC-12 PTA BANK LTD FLOATING RATE BOND FR(MTN)/2007/7YR 15-OCT-07 BARCLAYS BANK MEDIUM TERM FLOATING RATE NOTES FR (MTN)/2007/7YR 19-NOV-07 FXD (MTN)/2008/7YR 14-JUL-08 FXD (MTN)/2008/7YR 14-JUL-08 MRM FR (MRM) 2008/8YR 27-OCT-08 FXD (MRM) 2008/8YR 27-OCT-08 CFC STANBIC BANK SENIOR & SUBORDINATED BOND ISSUE FR (CFC STANBIC) 2009/7YR FXD (CFC STANBIC) 2009/7YR 7-JUL-09 7-JUL-09 24-JUL-19 24-JUL-19 24-JUL-19 7-JUL-14 7-JUL-14 14/12/2015 31-OCT-14 19-NOV-14 14-JUL-15 14-JUL-15 3-JAN-17 3-JAN-17 7-JUL-16 7-JUL-16 22-DEC-14 31-OCT-19 3-NOV-14 3-NOV-14 3-NOV-14 14-OCT-19 2-OCT-17 2-OCT-17 ELEVEN YEAR BONDS FXD1/2006/11YR TWELVE YEAR BONDS FXD1/2006/12YR FXD1/2007/12YR FIFTEEN YEAR BONDS FXD1/2007/15YR FXD2/2007/15YR FXD3/2007/15YR FXD1/2008/15YR FXD1/2009/15YR FXD1/2010/15YR FXD2/2010/15YR FXD1/2012/15YR FXD1/2013/15YR TWENTY YEAR BONDS FXD1/2008/20YR FXD1/2011/20YR FXD1/2012/20YR FXD1/2010/25YR THIRTY YEAR BOND SDB 1/2011/30YR INFRASTRUCTURE BONDS 12.00 BARCLAYS KEN 16.00 3.54 2.28 9.00 0.00 39.70 34.40 156.33 38.09 1.75 UCHUMI SUPER 21.98 55.00 -9.000 FXD2 (CFC STANBIC) 2010/4YR 27-DEC-10 KENGEN PUBLIC INFRASTRUCTURE BOND OFFER 2019 FXIB 1/2009/10YR 2-NOV-09 SAFARICOM LTD DOMESTIC MEDIUM TERM NOTE FR (SAFARICOM LTD) 2009/5YR FXD (SAFARICOM LTD) 2009/5YR FXD2 (SAFARICOM LTD) 2009/5YR HOUSING FINANCE MEDIUM TERM NOTE FXD (HFCK) 02/2012/7YR 2ND TRANCHE FR (HFCK) 2010/7YR FXD (HFCK) 2010/7YR 2-NOV-09 2-NOV-09 2-NOV-09 22-OCT-12 26-OCT-10 26-OCT-10 TWENTY FIVE YEAR BOND 12.44 -16.59 0.4000 32.7500 1.24 53.50% 7.52 30.810.46 22.00 KAPCHORUA 120.72 3.79 84.10 1.00 55.00 9.86 26.263.46 0.58 3.36 11.76 4.00 145.56 -1.00 2.4000 13.80 6.05 KENYA POWER 19.38 -21.50% 12.39 19.00 2.91 -33.0000 700.81 -15.167 5.516.00 14.50 10.36 -2.77 0.00 17.74 29.35 8.15 3.80 38.030 16.00 12.400.05 CFC STANBIC BANK 58.00% 12.50 EA PORT CEM 53.05 3.52 -0.000 500.44 10.23 66.03 3.00 44.05 11.00 0.468.0900 12.000 13.82 38.010.94 10.93 17.70 13.75 SAFARICOM 5.04 -2.21 18.11 -4.630.98 -2.00 8.92 1.47 35.50% 12.50 311.64 0.08 8.35 0.00 0.50 13.10 SCANGROUP 72.001.69 11.19 19.70 23.00 19.70% 13.462.68 -7.000 500.56 8.28 Equities & Bonds Weekly Treasury and Infrastructure Bonds BONDS WEEKLY STATISTICS % 6M 0.80 7.28 11.2800 7.53 27.92 34.75 1.40 4.2500 13.74 0.59 6.27 12.92 1.00 32.00 15.

00 704.00 0.74 96.30 1.59% 0.40 -0.39 1.04% 20.00 2.07 1.5 -165.28 1.00 1..27 0.27 1.70% -11.00 -1.182.61 109.19 -0.44 MEAN 85.00 276.64 3.90 0.26 3.19 263.34 0.92 15.63 2.00 1.70 8.127.02 3.10 14.00 128.526.32 8.431.25 1.87 13.835.50 1.87 3.781.85 0.898.00 3.62 1.00 375.129..43 31.19% 3.00 2.93% -24.29 2.00 0.52 4.00 1.00 775.18 1.41 18.07 -0.37 3.50 233.250.423.00 3.24 1.722.12 -0.61 -8.00 1.13 3.61 2.00 -4.30 8.20 31.CHNG -30.40 17.50 0.293.595.601.00 -1.75% 29.450.54 276.82% 1.405.10 1.95 1.71 514.55 150.341.00 2.67 761.50 NET.80 3.476.00 -1.308.00 390.90 -3.81 13.52 0.58 11.90 2.840.78 7.00 4.46 18.00 -7.22 1.45 158.00 128.00 1.00 34.04 1.63 -4.00 109.50 2.60 1.231.09 23.89 -2.02% 34.50 2.19% -1.38% 6.10 0.00 297.007.03% 24.00 3.50 1.00 2.15 381.3191 131.74% 3.325.622.88 18.60 -0.51 1.00 -3.96 5.84 13.09 0.699.77 YTD 52-WK 17.77 90.77 367.01 -0.50 0.65 1.41 -0.55 1.00 186.60 -4.50 1.53 21.00 638.02 2.29 84.00 -3.09 174.97 -1.63 20.21 28.50 11.FOODS/D ADMIRAL GROUP/D ABDN.00 876.55 -0.61 26.02 6.00 0.51 0.45 7.04 8.86 1.50 17.04 68.791.ON SE UNILEVER UNILEVER CVA NESTLE BARCLAYS TESCO BNP PARIBAS MOET HENNESSY LOUIS VUITT GLAXOSMITHKLINE HSBC HLDGS ROCHE HOLDING PART.00% 2.20 -0.72 1.35 18.50 3.30 18.703.87 -6.00 -0.595.24 9.93 0.58% 3.62 1.50 349.77 -0.55 40.40 287.11 200.31 -2.13 10.01 1.10 -0.02 3.00 491.011.025.32 -0.00 381.00 1.520.64 2.16 2.695.50 171.20 1.29 1.66 14.00 1.27 12.55% 10.00 395.55 1.88 90.66 13.89% 10.60 74.50 13.28% -1.90 3.50 5.52 1.48 0.50 543.02 201.64% -0.09 1.44 3.50 2.696.25 3.64 15.00-20.82 31./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 ROYAL DTCH SHL/D ROYAL DTCH SHL/D REED ELSEVIER/D REXAM PLC/D RIO TINTO/D ROLLS ROYCE PL/D RANDGOLD RES.53 -0.71 1.26 -1.76% 0.59% 10.75 516.42% 25.08% 0.254.03% -24.991.39% 4.10 2.20 3.26 BUSINESS DAILY | Tuesday April 2.40 11.91% 3.67 22.130.28 30.94 7.04 1.14 -0.30 17.545.256.80 287.09 22.00 -0.39 18.44% 51.50 0.00 3.00 30.90 -5.80 0.007.10 8.12 237.30 -4.50 628.03 68.03 .00 378.00 361.43% OPEN 14.14 -0.00 377.612.00 3.86 13.80 295.00 825.84 5.65% -26.79 898.96 3.13 33.50 -0.246.03 -0.80 357.57 -0.842.53 1.01% 5.14% -1.20 0.47% -3.40 273.75 75.68% -57.40 2./D RSA INSRANCE G/D RESOLUTION/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 XSTRATA/D LAST 1.00 0.785.20 -12.32 278.49 37.02 -0.01 0.248.65 8.52 0.77% 52.276.00 1.70 839.00 0.55 10.03 693.92 5.90 1.41 511.50 274.60 0.45% -4.50 1.23 21.50 67.57 11.709.236.00 829.75 429.790.75 0.68 8.12 904.80 14.22 30.93 PHARMACEUTICALS BREWERS SOFTWARE MULTIUTILITIES FOOD PRODUCTS FOOD PRODUCTS FOOD PRODUCTS BANKS FOOD RETAILERS&WHOLESALERS BANKS CLOTHING&ACCESSORIES PHARMACEUTICALS BANKS PHARMACEUTICALS ELECTRICAL COMPONENTS&EQUIPMENT INTEGRATED OIL&GAS PHARMACEUTICALS COMMODITY CHEMICALS COMMODITY CHEMICALS MOBILE TELECOMMUNICATIONS TOBACCO APPAREL RETAILERS MOBILE TELECOMMUNICATIONS CLOTHING&ACCESSORIES BANKS FULL LINE INSURANCE BANKS BANKS BANKS FIXED LINE TELECOMMUNICATIONS INTEGRATED OIL&GAS BANKS TELECOMMUNICATIONS EQUIPMENT FULL LINE INSURANCE DIVERSIFIED INDUSTRIALS INTEGRATED OIL&GAS INDUSTRIAL MACHINERY GENERAL MINING INTEGRATED OIL&GAS INTEGRATED OIL&GAS 3.55 13.70 813.30 250.176.00 1.76 14.54 2.50% 2.60 20.55 0.82 -3.80 89.41 -13.00 9.33 Europe’s Blue Chips Based on one day performance in local currency COMPANY ASTRAZENECA ANHEUSER-BUSCH INBEV SAP E.26 89.40 0.55 129.00 428.30 -0.90 -0.425.726.59 42.09% 15.90 22.299.421.20 11.15 15.00 882. WSJ MARKET DATA GROUP Global Indices NAME DJ INDU AVERAGE FTSE EUROTOP 100 XETRA DAX PF CAC 40 INDEX FTSE MIB SMI PR HANG SENG INDEX NIKKEI 225 INDEX ALL ORDINARIES STRAITS TIMES SSE COMPOSITE S&P SENSEX LOCATION NEW YORK LONDON FRANKFURT PARIS MILAN SWITZERLAND HONG KONG TOKYO AUSTRALIA SINGAPORE SHANGHAI MUMBAI LAST 14.40 0.61 -2.36% 0.28 94.M.50 -0.27% -1.00 48.00 186.50 3.85 0.70 0.11 2.24% 55.299.780.00 1.54% -0.23 116.482.20 3.71 23.53% -0.24 105.59 87.65 1.089.36 1.25 62.30 -0.00 -0.00 2.40 0.75 73.56 9.20 1.23 9.00 527.00 758.70 11.91% 1.924.59 357.44 7.882.22% -8.11 1.12 0.90 764.578.59 9.704.10 1.32 0.12 8.813.00 3.085.15 3.784.00 -0.45 48.00 350.10 2.16% 3.51 3.931.50 297.03 17.81% 4.26 28.289.50 51.94% 3.00 867.33 0.42 81.70 219.338.00 270.70 10.145.00 186.70 0.57 11.00 1.24 0.373.02 0.02% 7.255.00 5.63% 21.30 8.69 364.100.10 2.13 0.98 22.194.55% -11.06 1.40 1.85% 14.50 459.129.00 13.88% 14.80 1.00 2.00 -1.790.15 32.78 68.00 463.82 22.319.87 -3.52 6.60 -6.952.34 84.00 2.33 12.70 78.00 1.90 1.02 1.42 3. ERICSSON B ZURICH INSURANCE GROUP SIEMENS ENI ABB RIO TINTO BP PLC ROYAL DUTCH SHELL A SWITZERLAND SPAIN FRANCE GERMANY SWEDEN SWITZERLAND GERMANY ITALY SWITZERLAND UNITED KINGDOM UNITED KINGDOM UNITED KINGDOM 264.481.50 -0.00 34.99 22.530.20 158.43 9. ALLIANZ SE STANDARD CHARTERED COUNTRY UNITED KINGDOM BELGIUM GERMANY GERMANY UNITED KINGDOM NETHERLANDS SWITZERLAND UNITED KINGDOM UNITED KINGDOM FRANCE FRANCE UNITED KINGDOM UNITED KINGDOM SWITZERLAND FRANCE UNITED KINGDOM SWITZERLAND FRANCE GERMANY GERMANY UNITED KINGDOM SWEDEN UNITED KINGDOM SWITZERLAND SPAIN GERMANY UNITED KINGDOM DAILY LOCAL CURRENCY % PERFORMANCE IN LOCAL CURRENCY FTSE 100 NAME ANGLO AMERICAN/D ASSOC.00 57.07 1.60 1.50 0.81 18.585.60 0.13 14.53 123.37 US Dollar BACKGROUND EURO JAPANESE YEN BRITISH POUND SWISS FRANC GOLD SILVER AUSTRALIAN DOLLAR CANADIAN DOLLAR SWEDISH KRONA NORWEGIAN KRONE DANISH KRONE RUSSIA ROUBLE TURKISH LIRA ICELAND KRONA POLISH ZLOTY CZECH KORUNA HUNGARIAN FORINT UKRAINE HRYVNIA ISRAEL SHEKEL ALBANIAN LEK BOSNIAN MARK BULGARIAN LEV SERBIAN DINAR CYPRUS POUND ESTONIAN KROON GEORGIAN LARI GIBRALTAR POUND CROATIAN KUNA LATVIAN LATS KAZAKHSTAN TENGE LITHUANIA LITAS MACEDONIA DENAR MALTESE LIRA ROMANIAN LEU ANGOLAN KWANZA BURUNDI FRANC BOTSWANA PULA CONGO FRANC CAPE VERDE ESCUDO DIJIBOUTI FRANC ALGERIAN DINAR EGYPT POUND ERITREA NAFKA ETHIOPIAN BIRR GHANAIAN CEDI GAMBIAN DALASI GUINEA FRANC KENYA SHILLING COMORO FRANC LIBERIAN DOLLAR LESOTHO LOTI LIBYAN DINAR MOROCCAN DIRHAM MALAGASY ARIARY MAURITANIAOUGUIYA MAURITIUS RUPEE MALAWI KWACHA MOZAMBIQUE METICAL 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 SOUTH AFRICA RAND ZAMBIAN KWACHA ZIMBABWE DOLLAR BID ASK 1.66 2.00 31.69 2.975.60 263.50 0.81 123.30 0.32% 15.31 1.041.50 221.36% 6.00 4.243.00 1.66 1.00 2.14 8.95 1.80 0.03% 35.24 -2.00 1.513.14 3.50 2.MAN/D AGGREKO/D AMEC/D ANTOFAGASTA/D ARM HOLDINGS/D ASHMORE/D AVIVA/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 B SKY B/D BT GROUP/D CARNIVAL/D CENTRICA/D COMPASS GROUP/D CAPITA PLC/D CRODA INTL/D CRH/D CAPITAL SHOP C/D DIAGEO/D MAN GROUP/D EURASIAN/D EVRAZ PLC/D EXPERIAN/D FRESNILLO/D G4S/D GKN/D GLENCORE INT/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 KAZAKHMYS/D KINGFISHER/D LAND SECS GROU/D LEGAL & GENERA/D LLOYDS BNK GRP/D MEGGITT PLC/D MARKS & SP.27% 0.00 0.50 -0.025.28% 0.538.35 7.65 291.76 0.518. -1.526.00 1.051.50 0.58 3.00 1.00 1.00 5.35 89.040.70 1.96 HIGH 14.64 14.516.88 -1.64% -26.527.53 -0.98 91.61% 7.19 61.00 0.108.92 2.06 13.750.132.90 48.00 1.442.A.335.33 1.007.00 19.75 -3.63 -0.65 7.11 -2.670.80 -2.87 18.76 2.95 0.393.00 362.33% 8.00 -1.70 0.34 0.14 7.86% 10.05 3.00 1.26 -0.70 921.43 CLOSE 14.12 -7.00% -19.00 1.205.00 2.80 15.91% 30.72% -1.00 1.74 7.35 380.11% 0.83 1.00 -0.48 0.50 0.77% -12.10 1.95% 10.37 3.57 252.62% 50.20 1.75 4.329.20 -4.69 491.00 4.709.77 12.02 68.81% 0.50 -3.88 1.00 708.A.704.36 30.06 31.89 1.46 109.00 11.00 31.19 0.50 6.70 483.82 12.53 2.40 18.96 68.00 -0.09 15.80 0.20 -0.99 60.80 1.CHNG 52.79% INDUSTRY LAST CHG % CHG 1.351.26 5.70 2.00 0.00 1.50 1.86 7.50 0.280.48 -1.50 2.076.46 .00 895.74% 3.32 84.12 0.00 0.00 0.731.01 934.321.43 1.356.236.53 59.28 237.15 1.85 -6.00 90.00 201.28% 41.62 18.00 11.00 116.149.53 290.00 1.19 0.45% 43.00 6.00 7.45 1.00 5.00 30.85 7.784. 2013 MARKET DATA Global Markets & Currencies Currencies 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 $ BUY 85.69 1.10 4.70 7.03 94.90 1.04 -0.20 1.80 396.12% -8.00 342.00 401.236.64 0.71 1.62 2.52 16.50 1.376.238.62 2.551.78 -15.67% 79.93 1.278.BR.02 -0.50 0.00 4.35 12.50 0.063.313.78 1.45 95.22 9.90 0.60 302.96 -6.38 0.23 -0.38 0.44 35.288.13 1.12% 14.130.50 0.22 247.37 7.99% -0.00 0.00 1.36% 11.00 6.263.50 -0.85 1.20 1.50 1.299.69 47.40 1.704.941.90 1.40 -0.21 0.775.69% 19.CHNGPCT.50 77.77 NET.09 -0.52% 0.17 22.88% 1.87 80.01 -0.21 18.00 0.79 3.00 SOURCES: SIX FINANCIAL INFORMATION.005.90 1.270.30 0.45 94.00 172.30 18.80 4.77 89. SCHNEIDER ELECTRIC BG GRP NOVARTIS AG L’AIR LIQUIDE BASF DEUTSCHE TELEKOM BRITISH AMERICAN TOBACCO H&M HENNES&MAURITZ B VODAFONE GROUP FINANCIERE RICHEMONT BANCO SANTANDER S.96 13.00 0.07% -8.00 1.22 19.464.17 -8.695.20 8.15% 0.42 15.40 14.00 277.248.00 382.05 3.04 1.50 1.246.979.306.00 918.70% 18.35 0.527.56 1.40 18.00 854.18 -0.00 383.597.80 0.13% 13.59% 16.44 1.321.32 3.50 384.00 -4.73 1.179 -4.15 25.109.68 9.00 511.90 -3.75 383.01 18.60 1.10 8.00 276.10 20.527.72 1.34% 2.00 336.35 1.00 0.99 1.08% 46.CHNG PCT.50 392.00 0.00 627.47% 8.81 1.75 9.55 257.322.00 13.03 866.00 2.38% -41.70 7.45 3.62 -23.301.00 363.00 1.53 -0.50 1.75 -17.60 0.00 -2.436.00 0.74% 2.55 2.96 5.18% 0.35 0.00 2.63 -4.00 1.52 1.712.65 109.74% 29.03 3.53 2.70 0.65 630.00 2.78 16.09% 6.50 0.25 9.568.90 0.122.95 0.30 15.437.88 525.27 20.10% 0.23% 0.041.00 0.03 2.76 109.40 -1.63 12.70 84.58 0.70 1.00 4.90 15.25 -0.86 150.25 85.40 23.31 3.93 0.00 4.93 0.00 1.03 5.04 1.872.87 90.86 2.353.40 861.03 7.88% -20.10% 2.072.12 14.00 1.138.688.60 2.52 5.50 -1.390.77 CLOSE 1.09 3.25 9.24% 4.789.02 6.20 -22.345.10 378.41% 2.10 13.20% -1.16 89.25 0.90 3.04 133.25 30.431.37% 0.ASSET.00 1.50 540.00 290.10 2.15 780.34 2.00 85.64 129.422.77% 5.00 2.22 SELL 85.00 1.060.700.390.72 129.00 697.82 5.00 1.25 34.10 0.711.95 0.031.37 1.710.00 0.68 0.30 -13.01 85.77% 0.245.00 1.58% -20.00 -0.45 -0.065.62 2.00 0.134.555.20% -0.20 284.367.16 2.585.78 89.10 390.80 751.17 13.72 7.52 1.618.80 2.80 20.83 5.70 24.702.751.19% 11.307. CERT.778.02 38.67 2.035.27 19.49 830.065.54 LOW 14.452.40 0.00 1.50 1.00 367.47% 2.53 5.29 6.26 1-WK 1.89% 6.11 -1.23 -0.30 -2.59 1.00 1.52 0.00 4.253.00 18.82 459.60 -0.28 1.45% -4.00 2.38 9.397.26 2.38 1.90 0.02 1.979.90 868.98 202.294.22 288.50% 12.00 2.40 272.55% 11.75% 12.00 283.30 2.00 479.293.95 -27.00 1.62 14.80 6. TOTAL DEUTSCHE BANK TELEFON L.00 1.795.50 3.686.00 1.20 BANCO BILBAO VIZCAYA ARGN SPAIN UBS TELEFONICA S.28 1.41 3.47 222.539.50 702.00-19.45% 0.432.

” says Greene. the computer programmer entrepreneur who started Viaweb. notes Greene. they’re flexible and they love. . 2012). “you are going to hire the people that have the MBAs. look for somebody who is already doing what you see yourself doing in five to 10 years. it’s that you have reached that level of experience or practice. they are excited. Einstein attributed his own success to persistence. says Greene. No need to attend ext≥a school. by the time he was nine years old.” Greene says and the best way to become an entrepreneur is to try building businesses.” Don’t focus on making money in your 20s: “Tune out the idea of making your first million. 2000). achieving what he calls a “high-level intuitive feel” for their specialty. Mozart had already put in 10.000 to 20. Graham “can tell after one minute if he has the next Zuckerberg or this guy is useless. pursue experience over money. It’s completely bogus. have an unyielding focus and work ethic. 2013 | BUSINESS DAILY 27 MANAGEMENT: MANAGEMENT HowXXXXmbling Remain humble to downyou≥ ente≥p≥ise g≥ow 29 Page 28 Page 29 ENTERPRISE: You≥ child’s school should c≥eate a st≥ong cha≥acte≥ PERSONAL FINANCE SKILLS Forget entrepreneurship college. athletes and artists who rise above the rest in their field. If you are going to try to approach a master to be your mentor. Greene studied the lives of exceptionally successful people for his latest book. In the highly competitive interview process for Y Combinator. It’s the personal commitment to a topic. Mastery (Viking/ Penguin. Here are recommendations from Greene for entrepreneurs eager to be the next Steve Jobs. he says.000 hours researching and writing his last five books. FOTOSEARCH and maintaining the long hours and fervent curiosity required to rise to the level of “mastery” in a field. If you aren’t going to start your own business. problem or skill that is ultimately necessary for motivating Learn by doing: According to Greene. Greene says. would disagree.000 hours of work. learning entrepreneurship in school is inane. Building a company will inevitably confront you with unexpected challenges. he says. Part of what makes Greene popular is that he studies powerful people and then breaks down their process such that others can emulate it. you won’t push through all the crap the world is going to throw at you. Henry Ford’s first two automobile companies failed miserably. In Mastery. Chose a topic to focus on that you are deeply in love with: “Masters and highly successful people are emotionally and personally engaged in their work” on a level beyond intellectual curiosity. Greene interviewed Paul Graham. “You want somebody who matches your spirit.MANAGEMENT & LI E Tuesday April 2. the patience. “ Otherwise you are never going to have the energy. A healthy mentorship relationship is like that between a parent and a child.ENTREPRENEUR. you will give up too easily. wait to do so until you have already started amassing a body of work. and it is because they are openminded. A good mentor should be older than you and at a point in his or her career that he or she is wants to give back.” If you aren’t going to start your own business. you don’t want a stuffy conservative type mentor.com. having put in more 20. says Greene. says Greene. at least work in as small a company as possible to learn diverse skills. Greene de- A confident entrepreneur.” veloped a near cult-following for his methodical and. it’s like Legos. the best way is to practically build businesses. As an entrepreneur. Machiavellian breakdown of power and the people who wield it in The 48 Laws of Power. select a mentor: When selecting a mentor. an accelerator for startup entrepreneurs. Greene examines the cultural poster-children for naturalborn genius: Mozart and Einstein. and your ability to adjust your path to deal with those surprises is critical. When you have some experience. some say. too.” says Greene. Avoid large corporations and business school. “We have to get rid of that oldfashioned notion of genius and creativity. they have a childlike interest. The fascination we have in prodigies. Rather. “Being an entrepreneur is making something. For example. and a partner of Y Combinator. You are there to accumulate as much experience building a business and you want to build several. You will learn more than you could earn in those years. equaling the efforts of an average person in his or her 20s. a company acquired by Yahoo in 1998 to become the Yahoo Store.” He holds himself to the standard he preaches. “It’s not a question of some natural talent or brilliance that you have. those politicians. In the first five to 10 years after college. If you are a very rebellious type. They are going Be flexible and creative: For the book. It’s about learning. the ability to put up with the criticism. at least work in as small a company as possible to learn as many skills as possible.” says Greene. entrepreneurs. He says that there is no such thing as being born into superior success. he says. author of the popular The 48 Laws of Power (Penguin. Robert Greene. the persistence. Personality is important. scientists. if possible. is “bogus. “You want to actually psychologically desire failure because it is how you are going to learn.COM .” Greene told Entrepreneur. highly successful people lea≥n by doing T he notion of a miraculous genius being born smarter and more capable than the rest of us mere mortals charms our curiosity. says author to bring in that nuts-and-bolts knowledge.” Exceptional talent is about hard work. Greene says.

and hobnobbing you successful but end up with hor. Be brief and practical. success. Sammy Wanjiru won five of his seven marathons and was the youngest runner to win four “major” marathons. and your dange≥ous When you start a busico-workers line up ness. Sooner or later you’re also going to want to share what’s supposed to happen with a partner.you start losing focus. account for what you spend and what you deposit —not profit as it appears on the books. your product and your team — until there’s a business purpose for them.28 BUSINESS DAILY | Tuesday April 2. and you feel new things and grow.” Jos Hermens. So. history. But the new success. I’ve seen it done well with pictures. and it seems that That is when to remind yourself time for reflection is constantly in. you’re always availa. when. you’re used into a neat. You’ll add some thoughts about mission statements and mantra when you want. where deals revolve Success can be one around your experSuccess can of the most dangerous tise. The only sopressure to be there when needed. seem much more important than If you are like me when I was those old friends and recreational starting out. another. “It is a huge tragedy. Strategy: Strategy is about deciding how to focus a business offering on a key target market. Don’t make it for anybody else. Review schedule: Set aside time for a plan verses actual review once a month to compare what you planned would happen in your business to what really happened. all careers have serious chal. Whether you’re part of a larger organisation or run a business on your T Tiger Woods was brought down by a scandal and injuries. ≥emain humble to g≥ow MANAGEMENT Tiger Woods’ case offers many lessons in humility and power CANUTE WASWA STAYING AHEAD iger Woods is on his way back. This is not a term paper. but difficult to put all of the are about comprothis is not to reasons for early success mise. .but even success has to be managed. you should take the trouble to do a summary. happen is. useful stories. You call to your business and cabe the most reer. clean packto getting your way. Here. It was good a casual night out or watching a footmonth ago.You have to manage employees lenges fraught with danger. Yet.pursuits. then pen to your business. Planning is a process that includes review and revision. Then you need more infrastruc. The ace golfer is making headlines. your milestones. and who’s responsible. At 21. If you’re not careful. You know that people at the of. a long distance expert and manager of Ethiopian great Haile Gebrselassie. 2013 Life: Management Business success is a tough test. Your plan is for you first. And here’s why: the shots. success can sometimes be more options and distractions. That’s not to say that success is bad by any means. Planning is not a te≥m pape≥. happen to you≥ port decision-making. has milk today. It can start with just bullet points.” Reports say Sammy Wanjiru fell from the second-floor balcony of his house. without question. Do it because it helps you divide and manage big goals into practical steps. Your plan is never done. but in that process. but he is also dating Olympic ski champion Lindsey Vonn. create many versions for new ideas. By recording what is supposed to happen you’ll be able to better manage why. It’s mostly a reminder for you and your team. Playing golf with potential clibad day. “He could have won two. It’s a place where you keep track of the market. was quoted as saying. you need to manage cash from the beginning. FILE plan really needs at the early stages is: Milestones: What’s supposed to happen. Success is wonderful and worth pursuing. He was an incredible talent. vendor. Month by month. there isn’t enough behind you. tic expectations that most times are As you succeed you get to a place hard to live up to. ble by cell phone. but if you use the same ball match together. You the most dangerous thing to hapwin one client. Cash flow: Because profits don’t guarantee enough cash to pay your bills. He died at his home in the town of Nyahururu. again. how do you find time to write a business plan? You don’t. Basic numbers: Simple spreadsheet projections for sales. At that point. It is can’t wait. ture and have to hire and train help. surprisingly. You are always planning. Keep track of these main elements and grow your plan organically as your business grows. say it is a bad age of lessons learned. lists and numbers. costs and expenses. whose job performance reflects on the most dangerous thing that can your own. but money as it shows in the bank. Instead of looking at it as a document. And you’ll be able to set performance metrics and develop accountability for different tasks and milestones. bank or investor. three more Olympic Games. But more opportunities mean Yes.that humility does not come easily terrupted by matters that you feel to the successful entrepreneur.without humility it is hard to learn fice rely on your input. your cookies will probably taste like the wrong end of a come with a list of new priorities. thing to historical data to supUnfortunately. then another. All your business I People who use plans well. your roots. you might try ents.with industry insiders suddenly rible or lacklustre results. Not only has he returned to No 1 in the world for the first time since his career was derailed by a scandal and a string of injuries. Often. lution is to cut through the clutter You are an indispensable piece of the and the clamour by getting back to puzzle at work. however. have the basics at finge≥tips BY TIM BERRY f you’re serious about starting your business — even if you don’t have anything down in writing — you’ve already started to plan. but your planning process is your key to good management. Ask Tiger Woods. AFP own. You’ll add plans for organisational growth and structure as they become necessary. it’s a plan. It’s while relationships business. When you are communicating with someone else and need your business plan in one place. People will tend to have unrealis. thing by any You have to be careful You looked formeans ward to weekends because some of the lessons learnt are only learnt when you would in hindsight hang out with It is like the milk in friends. when and how things go wrong. going for after-work drinks to repeat your process of what made with colleagues. team and market. think of your business plan as a place on your computer where you collect ideas. you can spin it out from its components to a document. the late Wanjiru became the first Kenyan to win a gold medal in the marathon in 2008. goals and projections. the cradle of Kenyan longdistance races. enjoying a your cookie recipe. and everyone looks to you for things that can happen sometimes direction. in the Rift Valley. Don’t bother with the parts you won’t use — like descriptions of yourself. employee. he had the promise to dominate the distance for another decade. add descriptions of the business entity. almost contrary to his nature. There’s always a latest version and it lasts just a few weeks.

taking up their values and imitating them. Children. Matters have since changed drastically. What does this mean for the Leaders of Family Business whose children are now in primary or secondary school? What does it mean for them as they select schools for their scions to attend? Leaders need to understand that in this context. They do this by allowing the cubs to smell their mouths after they eat. The downside is that bears accustomed to eating human food and garbage pass on this preference to their cubs. signal their availability to join a pool of talent waiting to be ‘“hired’’ once a call that matches their skills comes in. How things are done in school. leaders should make diligent inquiry into the underlying values. The company is fundamentally challenging the assumption that employees need to be physically present to do their best work. making them a menace to humanity. firms simply select the nature and number of employees. nor do they have to check in at the office. Many schools are gauged by their average marks and numbers of students placed in public universities. Right from primary school. Because of their keen sense of smell (a polar bears can smell seals 30km away). engage with others (teachers and students alike) and build future networks. LiveOps — a cloud-based customer service provider — maintains a virtual workforce of independent agents who. especially those in boarding schools will conform to the administrations requirements. what is encouraged/ discouraged by the administration is critical in a child’s development. Rethinking what their employees do Traditional organisations assign employees to teams. Our research shows that innovating how a company engages with its workforce is an often overlooked way of increasing business model performance. Not all of these innovations are likely to be appropriate for every organisation. leaders should encourage their children to use their time in school to build character. Netessine is the Timken Chaired Professor of Global Technology and Innovation at Insead. they are geared for success. Kenya’s 8-4-4 education system glorified entrance into university as the ultimate goal of acquiring an education. Mr Mutua is a Humphrey Fellow and a leadership development consultant focused on family businesses. it is important that the schools values are congruent with those at home. The young bears grow up and resort to rummaging through garbage bins and breaking into homes and cars to get food. and then assign them working hours and responsibilities. have originated in these passion projects. the school and home cultures should be congruent. As far as possible. Leaders should remember that while they can later supplement an average students school fees to pursue parallel degrees. Children rarely played in the open. the parent company behind Wordpress (the leading blog platform). Parallel programmes have been introduced in public universities. or wherever they happen to be located. work from home. The basic structure of the firm-employee relationship hasn’t changed much over the last 50 years. some of Google’s most well-known products. managers assign them to the projects that would suit them best. Performance at primary/ secondary school level. 2013 | BUSINESS DAILY 29 Life: Labour Tid Bits Liberate employees and recharge the business BY KARAN GIROTRA AND SERGUEI NETESSINE A young woman studies online.mutua@googlemail. especially in a child’s formative years. Y oung bears are taught how to forage by their mothers. with little care given to the welfare or development of the students. is not the life and death struggle of the yesteryears. projects and tasks. Based on the firm’s assessment of each employee’s talents and interests. they cannot supplement poor character formation. Challenge your assumptions about employee-employer relations. Given that they spend more than 75% of their time in school. such as Gmail and Google News. Second.Tuesday April 2. France. FOTOSEARCH Education should help c≥eate st≥ong cha≥acte≥ in you≥ child Important points PETER MUTUA Leaders of family business should consider a school’s culture to be more important than its academic performance. Business leaders should encourage their children to build future networks. The famed Google initiative allowing engineers to spend 20 per cent of their time working on passion projects directly challenges the notion that employees should only focus on their assigned work. They’re doing so by: Rethinking who their employees are Traditional organisations identify a set of individuals as their ‘’employees’’ before they’re fully aware of each person’s talents and needs. academies sprang up whose sole claim to fame was the average student’s marks and the number of children taken to national schools. acceptable and unacceptable behaviour in the schools they send their children to. Lastly. Email: p. while important. The staff have no set working hours. High schools were not left behind. Relying on a forecast of organizational needs.m. long wait times and calls routed to incompetent agents. remember that attaining high marks in national examinations is not the best or only means by which to evaluate a school. a school’s culture. Girotra is a professor at Insead in Fontainebleau. So it is with human institutions such as schools where young students look up to their elders and teachers for direction as to what is good or evil. forcing some to duplicate what they see in high performing schools in a bid to climb up the ranks.com Rethinking where and when their employees work All employees at Automattic. Reportedly. LiveOps gathers enough data on employee performance to intelligently route calls to the best available agent. but they do highlight how important it is for firms to challenge their assumptions about the employee-employer relationship. students at local universities on a visit to the Alliance High School. this scent of food permanently registers as being good and acceptable by the cub. LiveOps’ unique approach eliminates the multiple inefficiencies associated with traditional call centres: idle employees. is much more impor- tant than its academic performance. What is the leader of Family Business to do? First. ensuring that any student who meets the basic university qualifications can pursue any course of their choice. If this happened in our school. FILE .” Andrew Nzioka and Martin Mariga. A few pioneering companies are challenging this traditional model and discovering unprecedented opportunities along the way. If they graduate with this and nothing else. Building character during the formative years is much more important. FAMILY BUSINESS We couldn’t believe our eyes when we visited Alliance High School. especially for those who will in future take up roles of leadership in the family business. based on their schedules. Leaders of Family Business should encourage their children to use their time in school to build character and strong networks. right there on the clothes lines were Man U and Arsenal jerseys put out to dry… and there was no one looking after them. Holiday tuition transformed itself from an optional remedial measure for slower students and being accepted as part of the school calendar. the clothes would disappear in a flash. The sole objective of secondary schools became to insert as many students into the public universities. It was not unusual to hear of schools using unconventional tactics such as registering better performing students in one unit and lesser performers in another.

The next step would be to find a way of advocating for responsible behaviour.4) 17 Subversive addition to quartet of writers? (5. FILE tinued appeared to be informed by the resistance to behaviour change. One had the message: “Do not cross Mombasa Road blindfolded” It seems the public want such hidden messages. We should help them to communicate effectively by suggesting better ways of passing the message. one strategy is to create a win-win situation where your target wins by continuing to do what they have been doing and you win by your intervention getting acceptance. The new communication that has since been discon- Many children To their shock the poor indicated that from the communication. 2013 Life: Marketing Suga≥-coating adve≥tisement confuses the message MARKET TALK BY BONIFACE NGAHU classic example of how messages can be taken literally was the promotion of family planning by the government several decades ago. Learn to communicate sensitive matters without obscuring the meaning or offending sensibilities T he recent uproar about the advertisement encouraging unfaithful couples to use condoms provides some interesting perspectives. Kenyans and religious leaders were up in arms against the new approach which they claimed was encouraging promiscuity. The main challenge the advertisement was attempting to address is the increasing rate of HIV/Aids infections among married couples.4) 15 Give pounds to old sculptor (9) 16 One sent to cover unsatisfactory private road (3-5) 18 French clown once very worried (7) 19 Substitute’s reputation not good (5-2) 20 Pure speed about to go to the head (6) 22 Wine lifts atmosphere. The other was a perfect small nuclear unit with a beautiful house in the background and a saloon car. This means society appreciated that this is a serious problem. The cartoonist referred to an incident where Jesus asked anyone who has never committed adultery to cast the first stone at a woman who a mob had accused of the same offence. One was poor with many children and a dilapidated house in the background. Besides. Another Times Crossword 23.4) 13 Conan Doyle’s behind a bit of capital that’s raised (7. The only complaint I heard was that the advert may have given some people ideas. having chips in (5) 7 Mixer in litres taken in drunken spree (7) 8 Marine mammal’s elegance tak-ing fish in sound (4. E-mail: b ngahu@sboresearch.co. lake is flowing into sea (9) 10 A mark to scrub for Eisenstein’s maid (5) 11 Oil. I imagine they have conducted research and found that previous campaigns against extra marital affairs may not have been quite successful. But there is the risk of this being taken literally . Advertisers should ensure their messages get through to potential beneficiaries by making them as simple and as clear as possible. The other complaint from parents was that children were asking far too many questions about it. Let us not just blame those who are attempting to communicate sensitive messages about real problems. I had put on part of face (5) 12 During organised day in Rome. messages must be as simple as possible. they got the message that you should have many children if you are poor. The biggest problem was that the advertisement was being taken literally and was hence perceived to be unsuitable for family TV viewing. The sponsors of the recent condom advert have experience in passing different messages to the public and they were probably avoiding the risk of the message getting lost in sugar-coating.30 BUSINESS DAILY | Tuesday April 2. of Troilus and Cressida?(5) 25 Bars of music at last in Chopin’s works (9) 26 To cry is not right any more (7) 27 Easily defeat in recount that’s ordered (7) Down 1 Shakespeare’s all-round reputation (6) 2 Picking up fruit-tree I left to fall back (7) 3 A hundred pennies drop: the game is up! (9) 4 What’s placed by plate? Resignation. It appears that we are insulating the future generations from the harsh realities of life by failing to effectively pass some messages that are essential for survival. We should not bury our heads in the sand like the proverbial ostrich. They also took the poster to mean that children belong to the government and it should take care of them. We must also appreciate the risks of being taken literally when communicating sensitive messages. In addressing resistance to change. It is obvious Pope Francis would not approve the airing of such an advert but you may want to consider the dilemma facing its sponsors. say. around one March (5) 25 Dog needs a clean up (3) 23. I remember how parents fought the introduction of sex education in schools. The government later engaged researchers to understand why the reproductive health behaviour among the poor was not changing despite so much communication to the community. no question about it? On the contrary (7) 5 All delivered after capture (7) 9 Moved by gravity. Sponsors either know something that we don’t know or we are not willing to accept reality. I also remember an old condom advert that was not so explicit. These are matters that require bold approaches and I hope that those who blocked the advertisement will address the challenges facing our society using other strategies. Mr Ngahu is the Marketing Director of SBO Research. This is why the society should boldly address controversial issues.5) 14 Erect radar site at sea. where access can be controlled (10. How do you communicate such a sensitive matter without raising eyebrows and hackles? There were no complaints about the previous Wacha Mpango wa Kando (stop extra marital affairs) advert.ke. Twitter @bngahu A woman displays a female condom to a group in Nyeri.908 Across 1 Style that’s plain.9) 21 A couple of points fixed as I desire (9) 23 Dismiss as valueless ultimate in hot spots (5) 24 The start — literally. This debate captured the imagination of the Nation cartoonist who wondered how Jesus would respond to critics of the advertisement that caused such heated debate.5) 5 Announced best film (3) 6 Way to eat some weeks. pressure for minimum ups and downs (4. Clinics had put up posters which displayed two families. sadly (6.907 .

Tuesday April 2.89 million) per week just to stay in Formula One. 2013 | BUSINESS DAILY 31 Life: SPORTS Pixie piper Ai≥lines told to cha≥ge obese people mo≥e Airlines should charge obese passengers more. every column and every 3x3 box contains 1-9.” he said. has never managed in the top flight and joins 16thplaced Sunderland six weeks after quitting third-tier Swindon Town. Tuesday’s match will be a contrast in styles with Bayern usually favouring a 4-2-3-1 system while Juve play a 3-5-2 style with Andrea Pirlo attempting to orchestrate their attacks from midfield. Real Madrid host Turkish league leaders Galatasaray while the surprise survivors and Spain’s third team Malaga are at home to Borussia Dortmund. While Bayern. A classic is on the cards.” The first would charge passengers according to how much they and their baggage weighed.” Tail-enders Marussia hope to take advantage of Russia’s growing interest in Formula One and boost their tight budget after signing a sponsorship deal with a Russian betting company. The special is called “Enslavery to Love and Lust” and costs around 800 yen ($8.” he added. while Barcelona are 13 points clear of Real Madrid in La Liga. Bharat Bhatta. Barcelona bounced back from a 2-0 first-leg defeat to Milan in the last 16 to triumph 4-0 at home. ‘‘Obviously if you want to move up you need a much bigger budget.25 million pounds ($1. “The first one is always the most important and I’m glad that Liga Stavok has made that historic breakthrough. A second model would use a fixed base rate. chief executive officer the Flamboyant Di Canio appointed Sunderland’s head coach Sunderland entrusted flamboyant Italian Paolo Di Canio with the task of securing their Premier League survival when they appointed him as head coach in place of the sacked Martin O’Neill. last season’s losing finalists. The team will today host Juventus while PSG will play Barcelona. we’ve just updated the tradition to fit our times”. Di Canio. including Juventus. have an intriguing first-leg tie in the French capital. “Paolo is hugely enthused by the challenge that lies ahead of him. Bayern coach Jupp Heynckes said: “We played textbook football at times today and the title cannot really slip away any more. in Munich tournament favourites Barcelona and Paris St Germain. said Fujioka. squeezed into the last eight on away goals after beating Arsenal 3-1 in London before a surprise 2-0 home defeat in the second leg. Five of the quarter-finalists are far ahead of their rivals in their own leagues and look set to finish as domestic champions long before the end of the season — enabling them to concentrate their efforts on Champions League success if they advance to the last four. Bayern. Andy Webb. but they showed that aberration was behind them. The quarter-final draw kept alive those prospects at the same time as serving up four intriguing last-eight ties which kick off on Tuesday when Bayern host Juventus and PSG play Barcelona. Vowz Bar has been going strong for 13 years and the cocktail list includes the vodka and cognac-based “Perfect Bliss” as well as “Infinite Hell” . arguing that “pay as you weigh” pricing would bring health. The 44-year-old’s appointment prompted former British foreign secretary David Miliband to quit the Sunderland board. Anatoliy Tymoshchuk. until Robert Lewandowski scored a late goal to give Dortmund a 2-1 win at VfB Stuttgart. Bhatta put together three models for what he called “pay as you weigh airline pricing. “People would gather in a Buddhist temple and drink together. .” chairman Ellis Short said on the club’s website after Di Canio signed a two-and-a-half year contract. West Ham United and Celtic. Eu≥ope’s elite football teams lock ho≥ns in qua≥te≥ finals CHAMPIONS LEAGUE Intriguing last-eight ties kick off today The Champions League tie between Bayern Munich and Juventus is the outstanding pairing of the round but there are glittering jewels — and duels — to savour everywhere in the quarterfinals of Europe’s elite soccer competition this week. to maintain this level. Juventus beat Inter Milan 2-1 on Saturday to move 11 points clear of AC Milan at the top of Serie A. did not reveal the financial details of the one-year deal with Liga Stavok (Betting League) but saw it as just the start of many good things to come. the German champions-elect. raspberry liqueur and cranberry juice concoction with a splash of tonic water. He is passionate. They are more connected with each other. Despite the absence of any English Premier League teams in the last Buddhist monk ≥uns ba≥ in Japan Japanese Buddhist monk Yoshinobu Fujioka enjoys bringing his congregation together. the Italian champions-elect. who also works at a temple just outside Tokyo. reduce fares. the distance between them and myself diminishing. Bayern are 20 points clear of Borussia in Germany and would have been crowned champions on Saturday. AFP Marussia sign sponsorship deal to boost tight team budget Russian-licenced team. where Buddhist chants replace karaoke songs and the shaven-headed bartenders serve up sermons and homilies along with the drinks. who enjoyed a colourful playing career with clubs. one cocktail at a time. and Daniel van Buyten celebrate after a past game. “It costs us 1. financial and environmental dividends. Last Week’s Friday’s Solution . with goals from Fabio Quagliarella and Alessandro Matri giving them victory over Inter. AC Milan. therefore. “To the degree that passengers lose weight and. Lazio. You solve the puzzle with reasoning and logic and not mathematical ability Bayern Munich players (from left) Xherdan Shaqiri. driven and raring to get started. the savings that result are net benefits to the passengers. an associate professor at Sogn og Fjordane University College. Marcio Rafinha.” Bhatta wrote this week in the Journal of Revenue and Pricing Management. Peruvian striker Claudio Pizarro scored four with Dutchman Arjen Robben adding two more in a dazzling performance that will put Juve on full alert. this year’s final in London could feature a “Clasico” between Real and Barca or an all-German final between Borussia and Bayern. eight for the first time since 1996. The clash between Real Madrid and Galatasaray brings together more old club mates: Jose Mourinho.” Juventus though had a good win of their own. He argues that carrying lightweight passengers will reduce the use of environmentally costly fuel.51). Fujioka owns the 23-seat “Vowz Bar” in central Tokyo. “They become totally different believers here.a vodka. face Juve. with an extra charge for heavier passengers. a Norwegian economist has suggested.REUTERS SUDOKU PUZZLE How to play 236 Fill the grid so that every row. after their staggering demolition of former European champions Hamburg. It was important to fill up on confidence but Tuesday’s game will be different with Juve being a top European team and much more aggressive. Didier Drogba and Wesley Sneijder. two more teams set to be crowned domestic kings soon. said that airlines should follow other transport sectors and charge by space and weight.

“Six bodies were found between Saturday night and this (Sunday) afternoon. Anti-poacher plane kills five A South African military helicopter crashed during an anti-rhino poaching patrol over Kruger National Park.10 -4. as reports emerged of child soldiers killed in the fight for the capital.467.38 FTSE 100 2. A 35-year-old woman in the eastern province of Anhui became ill on March 9 and is in critical condition.795.78 CURRENCY RATES FTSE MIB 15.23 Rebels form C Africa govn’t The Central African Republic’s prime minister has named mostly rebels and opposition figures to his new postcoup government. which has been assisting rangers in the fight against rhino poaching.300 480. It is complicated and there is rain. Hillblom Islet Research Centre at UCLA and the Diabetes Centre at the University of Florida reported in the journal Diabetes.431.SouthAfrican President.” Brigadier General Xolani Mabanga said in a statement.31 +6. The craft was an Agusta 109 deployed to Kruger. reports said.384.32 BUSINESS DAILY | Tuesday April 2.81 90.23 642. Prime Minister Nicolas Tiangaye — who has been allowed to keep his post by new strongman Michel Djotodia. — a sub-type that had not previously been transmitted to humans — the government said Sunday. page 28 www. Among the females in the trial.19 NIKKEI 225 12. lecturer. by the military. it said.83 117.000 15 1932 4860. All three initially suffered fever and coughs but later developed severe pneumonia and problems with breathing. in the late 1980s. 2013 FIND US ON FACE BOOK & TWITTER Your minute of the day TOMORROW: Elections with a diffe≥ence— expe≥iences and lessons IDEAS & DEBATE businessdailyafrica BD_Africa JacobZuma. Herbs reduce hot flashes Perimenopausal women who took a Chinese herbal formula called EXD (Er-xian decoction) experienced a significant reduction in the number of menopausal hot flashes.599. researchers from the Larry L. “The rescue exercise is still going on slowly.236.798 20. China National Radio reported on Monday. Ralph Waldo Emerson an American essayist.486 3.179 S&P SENSEX 18.835.42 +19.46 TSh USh SAR 18.63 -165.43 £: 129. adding that the accident occurred on Saturday.72 -15.578.308.54 +52.78 30. WEATHER High 27°C (81°F) Low 160C (620F) Nairobi: 3-day forecast High Low Tue Wed Thu Mostly Sunny Mostly Sunny Mostly Sunny 27°C 26°C 26°C 17°C 17°C 16°C . 1803 – 1882 Late Diana ‘went to gay bar’ Queen singer Freddie Mercury disguised the late Princess Diana as a male model and smuggled her into a notorious gay bar. The pope delivered his “Urbi et Orbi” blessing to Rome and the world from the same balcony of St Peter’s Basilica where he made his first appearance after his momentous election to the papacy on March 13. part of Operation RHINO. but they will continue working there until every point is sifted.072. according to a memoir serialised in Britain’s Sunday Times.000 troops after routing Al Qaedalinked forces from northern cities.62 +0. Another 62 miners remain missing under two million cubic metres of earth east of the Tibetan capital Lhasa.979. Download free QR Readers from the web and scan this QR (Quick Response) code with your smart phone for pictures. Latin America’s first pontiff also issued an appeal for hostages held by militants in Nigeria and condemned human trafficking as “the most extensive form of slavery in this 21st century”.299. This brings the total number confirmed dead to 25.23 TOTAL SHARES TRADED EQUITY TURNOVER IN SH BONDS TURNOVER TOTAL DEALS (BONDS) TOTAL DEALS (EQUITY) NSE 20 SHARE INDEX NSE ALL SHARE INDEX PBI 27 FTSE NSE KENYA 15 INDEX FTSE NSE KENYA 25 INDEX FTSE NSE KENYA BOND INDEX PREVIOUS 1590.731.87 -27. HE SAID Do not go where the path may lead.335. Mercury and fellow comedian Kenny Everett dressed Diana in an army jacket.000 28 2035 4830. and more stories Health NEWS Diabetes drug may harm user Type 2 diabetes patients who are on incretin therapy have a higher risk of developing abnormalities in their pancreas compared to their counterparts on other types of diabetes therapies.” he said. 2. “A preliminary investigation is currently under way to establish the sequence of events that led to the fatal crash of the helicopter.75 154. the army said Sunday.com GLOBAL MARKET WATCH DJ INDU. Some searchers dug with their bare hands to avoid damaging bodies or because the disaster had blocked roads needed to deliver large-scale rescue equipment. while a man aged 27 in the city got sick on February 27 and died on March 10.5 HANG SENG 22. The chip is attached to the vagus nerve which plays a role in appetite as well as a host of other functions within the body. updating an earlier toll of 19.96 -157.03 153.” Dar es Salaam Regional Commissioner Saidi Mecky Sadicky told AFP.37 +9.bdafrica. the National Health and Family Planning Commission said on its website. 14. “The helicopter was on a scheduled aerial patrol of the Kruger National Park as EU overhauls Mali army The EU began an ambitious top-to-toe overhaul yesterday of Mali’s ragtag army.21 9. a huge game reserve in the north of the country. officials said as hope faded of finding those missing two days after the accident.338.22 Market Activity LAST MARKET CAP IN SH BN 1. south London.072.13 SMI PR/d 7. The new government includes eight ministers from the former opposition and a close ally to ousted president Francois Bozize. As France prepares to withdraw its 4.78 157. with about 3.24 STRAITS 3. 4.43 157. the anti-rhino poaching operation. Animal trials of the electronic implant are about to begin and its makers say it could provide a more effective alternative to weight-loss surgery. Two Chinese die of bird flu Two people in China have died after being infected with H7N9 avian influenza Pope prays for Syria solution Pope Francis prayed for a “political solution” in Syria and for “reconciliation” on the Korean peninsula in his first Easter Sunday message in front of a crowd in St Peter’s Square.500. cap and sunglasses for a night out at the Royal Vauxhall Tavern.91 650. the first of four Malian battalions begins training with battle-hardened European instructors on April 2 as part of a wider effort to bring the army up to scratch as quickly as possible.622 35993800 857. War on obesity goes digital UK-based scientists have designed an ‘intelligent’ microchip which they claim can suppress appetite.93 SSE COMP. killing five people.77 +131.00 3.3191 $: 85.813. 25 die in Dar building mishap The death toll from a building which collapsed in Tanzania’s economic capital Dar es Salaam reached 25 on Sunday.500. videos. researchers from the University of Hong Kong reported in Menopause.07 90. Comedian Cleo Rocos describes in her book “The Power of Positive Drinking” how she. far from ready to take the place of foreign troops to defend the West African nation against fresh attacks by Islamist insurgents. and poet.67 +33.02 XETRA DAX 7. go instead where there is no path and leave a trail. An 87-year-old man in Shanghai fell ill on February 19 and died on March 4.83 ALL ORDI.22 CAC 40 3.705.500 emergency workers battling snow and altitude sickness to search for them.55 €: 109.619.USgolfer. page14 TigerWoods.44 117. whose rebels seized the capital a week ago — named a 34-member cabinet on Sunday that includes nine ministers from the Seleka rebel coalition. a reduction in the frequency of daily hot flashes of 62 per cent was observed. 21 bodies found in landslide Rescuers have recovered 21 bodies three days after a massive landslide in Tibet buried more than 80 mine workers.