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Kenya to cut diaspora cash
taxes from September
Page 6

More incentives needed to lure


investors

Mistakes to avoid on the


road to wealth creation

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Page 27

TUESDAY, APRIL 28, 2015

NO. 2083

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Shillings fall against dolla


signals ise in cost of living
Ination looms
large as Kenyan
currency touches
a new low of
Sh94 against
the greenback

BY CHARLES MWANIKI

Shilling/US Dollar exchange rate April


2011-2015

The Kenyan shilling continued its slide


against the major world currencies,
signalling a looming rise in the cost
of living in a country that is over-dependent on imported goods.
The shilling closed yesterdays
trading at 10 cents weaker at 94.35
to the dollar, staying on a losing path
that started last month and moving
closer to breaching the psychological

The Kenya shilling is exchanging at a three-and-ahalf year low to the dollar, wekened by lower dollar
inows and a globally strengthening US currency.

mark of 95 units to the dollar as rising


demand for the dollar continued to
weigh against weak inows.
Kenya is a net importer of consumer goods such as petroleum,
processed foods and clothing as well
as raw materials and machinery used
by its nascent manufacturing industry,
whose costs are expected to rise with
a weaker shilling pushing up the rate
of ination.
A weaker shil- SHILLING, Page4

NEW APPOINTMENTS

Old guad back


in Uhuu shake
up of paastatals
BY VICTOR JUMA

President Uhuru Kenyatta yesterday


made 302 appointments to 79 Stateowned companies that largely put
politicians and allies in charge even as
it recognised a few private sector professionals.
This is the rst batch of appointments
that gives the beneciaries three-year
directorships in the parastatals.
The long-awaited appointments, informed by the ndings of the Presidential Taskforce on Parastatal Reforms, are
meant to improve service delivery and efciencies besides dealing with rampant
corruption in the State-owned rms.
The administration is pleased to announce the rst batch of appointments to
State corporations in line with its transformative agenda for Kenya, State House
spokesperson Manoah Esipisu said in a
statement. In
JOBS, Page 4

JOHN NGUMI
CHAIRPERSON OF THE BOARD DIRECTORS
OF THE KENYA PIPELINE COMPANY

WAMBUI NAMU
MEMBER OF THE KENYA TRADE NETWORKS
AGENCY BOARD,

RICHARD LEAKEY
CHAIRPERSON OF THE KENYA WILDLIFE
SERVICE BOARD

OMINGO MAGARA,
CHAIRPERSON OF THE KENYA
INTERNATIONAL CONVENTION CENTRE

JUDY KIBAKI
MEMBER OF THE BOARD OF THE KENYA
INVESTMENT AUTHORITY

GACHAO KIUNA
MEMBER OF THE BOARD OF THE KENYA
INVESTMENT AUTHORITY

Bitam now
estates pofit
afte exit of
two diectos
BY FRED MBUGUA
IN PORT LOUIS, MAURITIUS

Financial services rm Britam has


revised its books for 2014 a month after they were published, reducing its
after tax prot by Sh342 million.
The reduction was revealed two
days after the resignation of two directors caught up in a corporate
governance crisis sparked by the
collapse of a Mauritius bank associated with the companys single largest shareholder.
Mr Dawood Rawat, the Mauritian business magnate wanted
for fraud, money-laundering and
embezzlement, and Mr Moussa Rawat, his nephew, left Britams board
on April 22, according to notices sent
to regulators the same day.
The notices were, however, not
made public within 24 hours as required by law. The duo represented
the interests of BAI Co (Mauritius),
which had a 23.34 per cent stake in
Britam and in which Mr Dawood Rawat had a controlling stake. The rm
has been placed under a conservator
by the Mauritian government after
evidence of overvalued assets and
understated liabilities emerged.
Britams revision to its nancial
statements has been attributed to an
issue with respect to the carrying
value of a local associate company.
The group has two associates
Housing Finance (46.04 per cent
stake) and Acorn Group Limited (25
per cent). Last week, the Mauritius
government said it would take control of Mr Rawats stake in the Kenyan rm as it begins a global hunt
for assets that can be seized and sold
o to repay victims of his fraud. The
search has so far
unearthed a castle BRITAM, Page 2

BUSINESS DAILY | Tuesday April 28, 2015

TOP NEWS

Bitam educes
afte-tax pot
by Sh342 million
insurer tries to get value for Mauritian
near Italys capital,
policyholders.
Rome, and property in places like the United Kingdom,
The conglomerate that Mr Rawat
Croatia and Romania.
owned is also invested in Botswana
The asset seizures are part of a plan
and Malta. Botswana regulators have
Mauritius Prime Minister Anerood Jugdelisted BAI (Botswana), in which BAI
nauth presented to parliament on Friday,
Co (Mauritius) holds an 80 per cent
whose aim is to compensate policyholdstake, and placed it in receivership.
ers and investors caught in the PonziGlobalCapital, in which Mr Rawats
type fraud aecting BAI Co (Mauritius)
rm owns a 48 per cent stake and conand its sister company Bramer Bank. A
trols a further 6 per cent, was also taken
Cabinet meeting held just hours before
o the stock exchange in Malta.
the parliamentary address agreed on
Kenya is isolated from what is happening, Mr Bhadain said.
wide-ranging legal and adIts only a 23 per cent holdministrative steps that will
see the State Insurance ComThe only link is ing and theres no control
pany of Mauritius (SICOM)
(exercised by the Mauritian
the investment BAI conglomerate over
replace BAI Co (Mauritius)
as a shareholder in BritishBritam, unlike in Malta
via the stock
American (Kenya) Holdings,
and Botswana).He, howexchange
the single largest shareholdever, acknowledged the
er in Britam.
risk of ripple eects from
ANDRE BONIEX
A yet-to-be-appointed
the scandal adding: But
BAI CO CONSERVATOR
national administrator for
now the situation is goa proposed National Property Fund and
ing to improve because the Mauritius
SICOMs board of directors will decide
government is giving the assurance
whether and when to sell the stake in
to all (Britam) investors that we are
the Nairobi-based regional nancial
stepping in.
services group.
Initial investigations by BAI Co
The countrys Financial Services min(Mauritius) conservators Andr Bonister Sudarshan Roshi Bhadain said the
ieux and Mushtaq Oosman, appointed
sale of BAI Cos stake in Britam to interby the Financial Services Commission,
ested parties was likely as the national
found that there were no operational
From Page 1

Index to companies
This index of businesses mentioned in todays issue of the Business Daily is
intended to include all signicant references to companies.
Britam.............................................1,2

Mumias............................................10

NHIF................................................... 6

NSE...................................................10

Telkom ...............................................7

Naivas ..............................................15

Kengen...............................................7

New KCC ..........................................16

Tata ....................................................7

Devki steel .......................................19

CMC ...................................................7

Stanlib .............................................19

TOYOTA ..............................................7

Apex steel........................................19

TransCentury.................................... 8

Brent oil ...........................................21

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Mr Andre Bonieux, a senior partner at PricewaterhouseCoopers and Mr Roshi Bhadain, Mauritius Minister for Financial Services,
one of two conservators of BAI Co (Mauritius) Ltd. COURTESY
Good Governance and Institutional Reform. COURTESY

or commercial ties between Britam and


BAI. The only (nancial) link is the
investment via the stock exchange, Mr
Bonieux told the Business Daily, adding that he and others in Mauritius with
a voice in what happens to the Britam
stake are in touch with Kenyan regulators and Britam executives on what
is going on in Mauritius.
He hinted at a possible sale of
GlobalCapital, suggesting multiple
suitors.
Britam, he says, remains the jewel
in the crown of Mr Rawats crumbling
empire, and that the Mauritius government and an administrator hired to
run his non-insurance businesses also
consider it his best investment.
Meanwhile, eorts to nd and freeze
assets owned by Mr Rawat and other
beneciaries of his scam continue. An
asset recovery unit run by Mauritian
police and public prosecutors has obtained Supreme Court orders freezing
shares and immoveable assets in the
country, even as the Attorney General
seeks mutual legal assistance to seize
other assets around the world. But is

this swift response to the fraud a case


of dj vu all over again? The intervention underway is reminiscent of the
resolution to a 2009 fraud scandal involving British-American Investments
(Trinidad & Tobago). Known as the
CLICO scandal, after BAI (T&T) Ltds
parent company Colonial Life Insurance Company, it, too, involved overvaluation of assets and was resolved
with a government bailout of the $100
billion conglomerate. Media reports
in several countries in the Caribbean
aected by the giant rms failure suggest many policyholders got the short
end of the stick.
Bhadain says Mauritius, which
is still reeling from the discovery of
another alleged $16.5-billion Ponzi
scheme last month (Belvedere, run
by two South Africans), is keen to take
the right actions to gain a reputation
for clean business. This, he says, is
why the State wants to protect policyholders.
The State has promised capital repayment for all policies, including those
oered under toxic single-premium in-

vestments at the heart of the fraud, only


imposing a haircut (loss of interest)
on the Ponzi scheme victims.
The Mauritian government has also
taken steps to clean house, with at least
a dozen appointees to various oversight
positions losing their jobs. An international arrest warrant for Mr Dawood
Rawat is still in place.
Former BAI (Mauritius) chief executive Oomeshsing Rishi Sookdawoor
is out on bond after being charged in
a Port Louis court with aiding Rawats
fraud.
At least one other unidentied BAI
ocial is facing a similar fate, reliable
sources say, even as a government minister conrmed the police and other
investigative bodies were looking at a
wider range of suspects. My government (has) saved the country from an
unimaginable nancial disaster, Sir
Jugnauth said, as he announced the
plan to sell BAI properties to pay policyholders. If we had not made decisions, our nancial system would have
tumbled as in Trinidad & Tobago.
FMbugua@ke.nationmedia.com

AG opposes bid by ms seeking


Sh4.2bn post-poll violence payout
BY BRIAN WASUNA

Attorney-General Githu Muigai


wants the High Court to dismiss a
Sh4.2 billion ($47.5 million) claim by
13 Ugandan and Rwandese rms for
losses they suered in the 2007-2008
post-election violence.
Prof Muigai says in court papers
that the government notied vehicle
operators of the dangerous state of
Kenyan highways leading to both the
Busia and Malaba borders, in addition to providing security convoys to
motorists plying the aected routes.
The rms, however, say their trucks
were looted and destroyed by the demonstrators while ferrying goods.
The transporters sued the government in 2009 for negligence, demanding Sh4.2 billion compensation for
special damages. They have also asked
for general damages, an amount they
say should be calculated at the courts
discretion.

The government issued advance


warnings to operators of motor vehicles operating along the Nakuru-Eldoret-Busia-Malaba highway and provided armed security. If the plaintis
suered economic loss, all of which
is denied, it was not occasioned by
any negligence of the government,
says the AG.
The 13 rms and three businessmen claim that the government,
through the police, failed to accord
their trucks adequate security, which
led to the loss of their property in the
chaos. They have also faulted the government for opening the highway for
use in clash-prone areas.
They claim they lost $22.9 million
(Sh2.03 billion) along with the trucks
and goods that were being transported across the country.
But Prof Muigai says the government deployed both police ocers
and Kenya Defence Forces personnel to maintain law and order on the

aected routes. He adds that the chaos


was a spur of the moment that could
not have been foreseen by the State.
The post-election clashes between December 2007 and February
2008 were spontaneous and as such
any damage to the plaintis, could
not reasonably be foreseen. The government in discharge of its duty deployed extra police ocers and Kenya
Army ocers to the aected routes,
he added.
Intraspeed Logistics, Kampala
City Traders Association, KATRACO
Uganda and Mugenga Holdings were
the owners of the 22 heavy duty trucks
destroyed in the chaos.
They have been joined by Dooba
Enterprises, Willex Uganda, SEBCO
Uganda, KPI Limited, Bunyonyi Safaris, Seven Hills Impex, Uganda Agricultural Tools, Board City, Bidco
Uganda and businessmen Suleiman
Bateganya, David Musana and Arthur
Turyahikayo.

Tuesday April 28, 2015 | BUSINESS DAILY

TOP NEWS
FRED MBUGUA

RADAR SCREEN

How Dawood Rawats deception was unavelled


FRAUD Most of his relatives were

running distressed assets blamed for


losses running into billions of rupees

he big mans black Merovervalued at 33.6 billion


cedes S600 with the
rupees (Sh89 billion) and
vanity licence plate
were only worth about Rs17.2
billion (Sh45 billion). The total
BA1 has not been seen in
liabilities, estimated at Rs26
weeks making the dash from
billion by BAI, were worked
his home in Curepipe to the
out to be Rs28 billion (Sh74
SSR International airport at
billion). Of this, Rs23 billion
one end of Mauritius or Port
(Sh61 billion) were the result
Louis at the other.
of the controversial Super
Dawood Rawat, whose
Cash Back Gold scheme that
friendship with the countrys
government ocials say was
previous Prime Minister has
being run like a Ponzi scheme.
been described by a current
The value of key subsidiaries
Cabinet minister as toxic,
like Iframac, Courts and the
is on the run. Once chairman
Apollo Bramwell Hospital
emeritus of the British American group of companies, he is
were also revised downwards
now a fugitive accused of protwith by the conservators.
ing from an elaborate scheme to
As a result the rm was not
cook the books at BAI Co (Mauin a position to meet its obligaritius) that saw liabilities played
tions, even if it had not lost Rs6
down and assets overvalued.
billion (Sh15 billion) loaned to
Bramer Bank when the liquidity
While Mauritian authoricrisis led to the loss of the banks
ties concede some of the
licence. The interim document,
former Britam directors comBAI Co (Mauritius) conservapanies were clearly in trouble,
it wasnt until his
tor Andr Bonieux
failure to make a
says, shows a clear
cash injection
trail of bad investled to Bramer
ments through subWe found
sidiaries involved in
Banks suspension that a cri- thee was a huge everything from car
sis was touched
dealerships to a prifaud case
o, revealing the
vate hospital. Britam,
ROSHI BHADAIN,
true extent of his
the 4.5 billion rupee
FINANCIAL SERVICES
deception.
jewel in the crown,
MINISTER
We found
stands in contrast
there was a huge
to distressed assets
fraud case, Financial Services,
like Iframac and the Apollo
Good Governance and InstituBramwell Hospital.
tional Reform minister Roshi
BAI Co also has a protable
Bhadain told the Business Daitoehold in Equity Bank and
ly during an interview in Port
Housing Finance through its
Louis on Friday.
Kenyan investment vehicle.
Policyholders money which
The main problem was the
had come into the insurance
underperformance of BAIs subsidiaries, said Mr Bonieux,
company had been passed out
through various subsidiaries in
listing the largest distressed
Mauritius. Some of the funds
investments as Iframac, the
taken (from) new investors
Apollo Bramwell Hospital
were being used to repay old
and Bramer Bank.
ones and the interest rates that
And, of course, some of the
they were giving were high, in
insurance products they were
some cases going up to 10, 12
selling were (being oered) at
and even 14 per cent (well above
too high a rate.
the average of three to four per
Under Mauritius law, insurcent). It had all the hallmarks
ance rms are barred from investing more than ten per cent
of what is commonly referred
of their assets in related parties.
to as a Ponzi scheme.
According to a condential
But as at December 31 last year,
report from the rms
BAI Co (Mauritius) had 58 per
cent of its assets tied up in strugconservators, as at December
31 last year, BAI Co (Mauritius)
gling related rms.
Ltds assets were substantially
This was down from a high

Mr Dawood Rawat is now a fugitive. FILE


of 85 per cent in 2009.
The companys regular insurance products such as its
various life cover, education
and pension schemes held by
some 135,000 people were
okay. The poison lay in three
single-premium investment
products, the most popular of
which was called Super Cash
Back Gold and oered unsustainable annual returns of up
to 14 per cent.
The involvement of Rawat
relatives in the management of
many of these subsidiaries, as
well as other holding companies, is also a red ag.
Seaton Investments, BAI
(Mauritius) Ltds loss-making
holding company, was headed
by Mr Dawood Rawats daughter, Adeela-Feistritzer Rawat. Its
board was stacked with male
relatives with the only person not a blood relation being Adeelas husband Claudio
Feistritzer.
Adeelas sister Laina headed
a division at BAI, and the failing
Apollo Bramwell Hospital was
headed by their sister-in-law,
Valerie Rawat. (BAIs ultimate
holding company, Bahamas
registered KLAD Investment,
is named for family members
Kerima, Laina, Adeela and
Dawood.) The path to recov-

ering from this crisis almost


certainly involves selling the
best-performing assets in
this case Britam. We have to
make sure serious bidders come
to the table. There must be a
proper bidding process, Mr
Bonieux said.
Id certainly like to do that
with full transparency for BAI
policyholders and management (and shareholders) in
Britam. It has to be planned.
There is no rush. But, having
said that, I dont think there is
a strategy to keep Britam for
a very long time. Bhadain,
whose relatively new Ministry
champions good governance,
says the crisis and Mauritius
response are an opportunity
for change.
Fraud happens, he said,
citing Enron and Lehman
Brothers in the United States,
and BCCI, the Maxwell Aair
and Polly Peck in the United
Kingdom. It has been dealt
with swiftly. The Finance
Minister decided the National Commercial Bank was going to take everything on board
and safeguard the interests of
(Bramer Banks) depositors
and employees. We reassured
(BAIs 135,000) regular policyholders that the government is
going to secure their policies.

Then we started a massive exercise to understand what had


happened, who was responsible
and why it happened.
The result was a decision to

re the chief executive of the


Financial Services Commission, the head of the Financial
Reporting Council, and a tenperson national committee on
corporate governance.
The name of the game is to
learn from these (crises) and
bring appropriate legislation to
make sure the loopholes people
are using to abuse the system
are closed down, Bhadain
says. Changes to the Insurance Act are being proposed,
for instance, to clarify the denition of related companies and
prevent the sort of transactions
that brought down Mr Rawats
empire. Is that sort of thing possible in Kenya? British-American Insurance (Kenya) Managing Director and Regional
Director of Insurance Steven
Wandera points out that Kenya
has tight restrictions on relatedparty transactions in the insurance industry, with the limit at
ve per cent and no ambiguity
over what counts.
Local regulators, he adds,
are conservative over how assets and liabilities are valued,
requiring the former cover the
latter. The Insurance Regulatory Authority also insists on
independent directors and investment committees, and approves all products oered.

BUSINESS DAILY | Tuesday April 28, 2015

TOP NEWS

Cost of living set


to ise as shilling
hits Sh95 to dolla
From Page 1

ling, however, has the


If ination goes up above the CBKs
impact of making Kenyan exports more target margins, the CBK will be forced
aordable and should therefore help to increase the base rate. This will in
drive volumes, besides translating to turn increase the cost of credit to the
private sector and ultimately slow down
better earnings for every dollar.
Analysts, however, said overreliance the rate of growth, said Commercial
on imports means the economy could Bank of Africa senior dealer Joshua
wipe out any benets the
Anene.
importers may get from a
Kenya imported goods
weaker shilling, leaving
worth
Sh1.618 trillion in
If ination goes
consumers in a worse po2014, up 15 per cent or
up above the
sition.
Sh210 billion more compared to Sh1.408 trillion
Taking all the market
CBKs taget
factors into consideration, magins, the CBK in 2013, according to the
a weaker shilling would inKenya National Bureau of
will be foced to Statistics (KNBS).
crease inationary pressure
and ultimately result in a incease the base
The value of imports
higher cost of living, said
rose only marginally by
ate
Sh32 billion or 6.5 per cent
Ecobank Kenya country
from Sh504.3 billion to
treasurer Bobby Otieno.
JOSHUA ANENE
CBA SENIOR DEALER
Sh537.1 billion meaning
Reduced inows from
that Kenyas trade decit
tea and tourism sectors,
payment of dividends by multinational widened by Sh177.7 billion to Sh1.08
companies and a reduction of inows trillion.
The imports were mainly in form of
via forex bureaus with the crackdown
on terrorism nancing have signicant- capital goods for infrastructure projects,
ly impacted the forex reserves.
fuel and manufactured goods.
Ination stood at 6.31 per cent in
The KNBSs producer price index
March up from 5.61 per cent in February (PPI) for the rst quarter of 2015 also
a gure that is still within the Central shows that the overall cost of producBank of Kenya (CBK) target of between tion for manufacturers increased by
2.5 and 7.5 per cent.
1.52 per cent compared to a decrease
In addition to the expected rise in the of 1.23 per cent recorded in the fourth
cost of living (ination), a weaker cur- quarter of 2014.
rency has a wider impact on the econThe main contributors to the rst
quarter increases were manufacture of
omy, especially on interest rates.

Shoppers at a supermarket in Nairobi. The cost of living is likely to rise due to an


increasingly weakening shilling. FILE
food products (up 1.79 per cent), manufacture of beverages (up 2.52 per cent)
and manufacture of rubber and plastic
products (up 2.85 per cent), the KNBS
says in the PPI report.
Costs associated with food and nonalcoholic beverages have the biggest
weighting in the monthly ination
index at 36 per cent and account for
up to 40 per cent of the producer price
index.
Consumers have been enjoying some
respite on ination helped by low cost
of petroleum products arising from a
recent dip in global crude oil prices.
Consultancy rm PricewaterhouseCoopers (PwC) put the total savings on
oil import bill in the past year at $200
million (Sh18.5 billion).

Oil prices have, however, rebounded


since January when a barrel was priced
at an average of $46 to an average of $65
a barrel today, meaning pump prices are
likely to rise in the Energy Regulatory
Commissions next two review cycles.
The shillings quick slide towards
the 95 units to the dollar has also gone
against the general expectation that
this exchange rate would only be realised progressively towards the end of
the year raising the possibility that
the shilling may drop further than the
projected levels.
We had not forecast that we would
get to 94 so early in the year and we have
breached that level quite easily. This
means we could see the exchange rate
anywhere between 95 and 98 to the dol-

lar by year-end, said Mr Otieno.


Dealers said the shillings weakening is also driven to some extent by domestic factors and not just the dollars
global strengthening.
Last week the dollar lost some
ground to other world currencies, a
development that was not felt in the
Kenyan market.
The CBK has, however, come in to
reassure the market that it is closely
monitoring developments in the foreign
exchange market and that it will continue to use appropriate monetary policy instruments to minimise exchange
rate volatility.
The bank has adequate foreign exchange reserves in excess of 4.5 months
of imports to cushion the exchange rate
against these short-term shocks and
volatility, the CBK said in a statement
issued on Tuesday last week.
The bank intervened in the market
yesterday with dollar sales as the shilling dropped to an intra-day level of
94.40/50.
It is the eighth time the CBK has intervened in the market in recent times
to minimise volatility through the sale
of dollars as the shilling depreciated
to cross a key psychological limit. The
regulator has, however, not sought
to determine the direction of the exchange rate.
The shilling has in the past been seen
as overvalued to the dollar and some
economists have advised the authorities
to allow it to depreciate gradually.
Last July as the shilling hit 88 units
to the dollar, Francis Mwega, a CBK
monetary policy committee member, said in a research paper that the
local currency was overvalued by 4.3
per cent.
The World Bank put the cumulative overvaluation over a decade at
33 per cent.
cmwaniki@ke.nationmedia.com

Old guad back in Uhuu shake-up of paastatals


making the appointments, the administration has tapped into the wisdom, experience and knowledge of our senior
citizens, while embracing the energy,
enthusiasm and innovation of our
young people.
The list of the appointees that was
gazetted yesterday includes John
Ngumi Standard Banks head of East
Africa investment banking who will
chair the Kenya Pipeline Company for
three years. Polycarp Igathe, the CEO
of Vivo Energy (formerly Shell), is the
new chairman of the Anti-Counterfeit
Agency while James Ndegwa is the
new chairman of the Capital Markets
Authority (CMA), replacing Mr Kungu
Gatabaki who left last year. It was not
immediately clear whether this individual is also the chairman of NIC Bank
who has a similar name.
Richard Leakey, the renowned conservationist, who served as managing
director of Kenya Wildlife Service, is
From Page1

Polycarp Igathe, Chairperson of the


Anti-Counterfeit Agency Board

Wenwa Akinyi Odinga , member of the


Board of the Kenya Medical Research
Institute

Margaret Saitoti, member of the National Oil Corporation of Kenya Board

back at the agency as its chairman.


Marsden Madoka who has been serving
as Kenya Revenue Authority chairman
got another big appointment, replacing Danson Mungatana as chair of the
Kenya Ports Authority (KPA).
Mr Kenyatta also appointed scores of
politicians and their relatives in an apparent move to widen his political base,
especially in areas where his coalition

received relatively few votes in the last


General Election.
Musikari Kombo, a western Kenya
politician, was among the big winners
having been appointed the chairperson
of the Water Services Trust Fund for
three years eective April 17.
Judy Kibaki, a daughter of former
president MWai Kibaki, joins the
board of the Kenya Investment Au-

thority alongside TransCentury CEO


Gachao Kiuna and Mombasa politician
Taib A. Taib.
Wenwa Akinyi Odinga, the sister
of Cord leader Raila Odinga, joins the
board of the Kenya Medical Research
Institute while Margaret Saitoti, the
widow of former Internal Security
minister George Saitoti, is among the
new directors appointed to the board

of the National Oil Corporation.


Mr Esipisu said the government
made an eort to ensure the appointments are inclusive in terms of communities, age, gender, and people with
disabilities.
The appointments reect the face of
Kenya, with all 47 counties represented
in honour of the diversity of all people
and communities of Kenya, he said.
They also comply with the constitutional imperatives on the appointment of women, youth and persons
with disabilities.
Women, youth and disabled currently form 31 per cent of the top parastatal management and their share is
expected to rise once the reorganisation
of the rms, including further appointments, is concluded.
The 302 appointees will be expected
to make a public declaration on ghting
corruption, Mr Esipisu said. Their hiring is the rst outcome of the reforms
study that took nearly 18 months.

Tuesday April 28, 2015 | BUSINESS DAILY

BUSINESS DAILY | Tuesday April 28, 2015

ECONOMY & POLITICS

Cout stops bankuptcy poceedings against Kambi


BY BRIAN WASUNA

The High Court has stopped bankruptcy proceedings against suspended Labour secretary Kazungu Kambi
over a Sh304 million loan owed to Development Bank by a rm associated
with him.
Justice Eric Ogola issued the order
following an application in which Mr
Kambi has denied culpability in the
debt owed to Development Bank by
Riva Oils Company.
The bank says Mr Kambi and two

other directors, Ezekiel Karisa and


David Tuitoek, had guaranteed the
loan to Riva Oil Company which had
operations in Tanzania, Uganda, and
Zambia.
In the application, Mr Kambi says
the lender never informed him of the
High Court judgment ordering him
and the other directors to settle the
outstanding loan amount.
Mr Justice Ogola has also stopped
Development Bank from asking Mr
Kambi to settle the debt until his application is determined.

Mr Kazungu Kambi,suspended Labour


secretary. FILE

Development Bank successfully


sued Riva Oils in 2013 for Sh304 million after the oil rm, Mr Kambi, Mr
Karisa and Mr Komen failed to defend
the suit. Mr Kambi led the suit against
Development Bank after it initiated
bankruptcy proceedings against him
for failing to pay the debt.
A temporary stay of execution of
the judgment delivered on April 2,
2013 and any subsequent proceedings is hereby issued pending the
hearing of this application on May 18.
By that time all the parties in this suit

Teasuy to cut taxes


on diaspoa cash
fom Septembe

Employes want
new NHIF ates
pegged on basic pay
BY WAINAINA WAMBU

PLAN Rotich says downward review is

expected to further reduce cost of transfer


home through ocial channels as an
impediment, prompting a strategy reKenya is set to cut charges on money
think by the government.
sent home by citizens living abroad
Mr Rotich said the downward refrom September in yet another measview is expected to further drive down
ure aimed at boosting remittances that
the cost of money transfer.
have become an important source of
The cost of sending cash in the
hard currencies.
country is estimated at 9.2 per cent
Treasury secretary
of the value of the transfer,
which is higher than the gloHenry Rotich said the
bal average of 8.96 per cent.
new rates are contained
We have
in a policy document on
The volume of cash ows
remittances that the Cen- analysed the cost from Kenyans abroad has
tral Bank of Kenya has
growing over the
of tansfeing been
crafted in partnership
years, hitting Sh140.9 bilwith the African Insti- money fom the lion last year.
tute for Remittances.
Apart from supporting
diaspoa...
household consumption and
We have analysed
HENRY ROTICH
real estate growth, diaspora
the cost of transferring
money from the diaspora
remittances have stabilised
to Kenya to identify areas in which we
the shilling amid dwindling fortunes
can lower charges such as taxation
of traditional foreign exchange earnand transfer fees, Mr Rotich told the
ers like tea, coee, horticulture and
Business Daily yesterday.
tourism.
Mr Rotichs policy announcement
Kenyans abroad have often cited
comes hot on the heels of a diaspora
the high cost of sending money back

shall have responded to this suit, Mr


Justice Ogola said.
The rm borrowed Sh250 million
in 2007 and the sum had accrued to
Sh304 million in 2010, which the
bank is demanding with interest of
17 per cent yearly pushing the debt
to Sh390 million. Mr Kambis lawyer
Philip Nyachoti said his client was not
aware of the judgment ordering Riva
Oils and its directors to pay Development Bank the outstanding loan hence
it was unfair to institute the bankruptcy
proceedings.

BY NEVILLE OTUKI

Treasury secretary Henry Rotich. He said the government would reduce taxes on
diaspora cash to spur greater cash ow volumes into the country. FILE
conference early this month in Nairobi where President Uhuru Kenyatta promised to institute mechanisms of cutting costs on diaspora
remittance.
The government also hopes that
the increased competition among
commercial banks jostling for a pie
of the remittances business will result
in lower sending fees.
Foreign Aairs secretary Amina
Mohamed on Sunday asked Kenyans
in the US to widen their investment
back home, saying the government
would start oering preferential duty
waivers on their businesses.
We are exploring possibilities of
preferential duty waivers and other
concessions for diaspora businesses,

said Ms Mohamed in a statement from


the US.
The scal incentive plan comes
even as use of mobile money transfer
for international cash transfers is gaining prominence in the country since
it is exible and cheaper.
According to GSMA the global association of telecoms operators the
average cost of sending Sh9,336 ($100)
via mobile money is Sh375 ($4) less
than half the average cost of sending
money globally through traditional
money transfer channels.
Safaricom has partnered with
traditional service providers, Western Union and MoneyGram to move
money into Kenya via M-Pesa.
notuki@ke.nationmedia.com

The Federation of Kenya Employers


has asked employers to base the new
rates for National Hospital Insurance Fund (NHIF) on basic rather
than gross pay.
The new rates, which come into effect at the end of this month, require
workers earning Sh5,999 to pay
Sh150 which is the lowest deduction
and those earning above Sh100,000
to pay Sh1,700.
FKE chairman Linus Gitahi said
the decision by NHIF to base its new
rates on gross pay was confusing.
This paradigm shift of basing
statutory payments on gross earnings is misguided and punitive to
both employers and employees, Mr
Gitahi said.
The self-employed will now remit
Sh500 up from Sh160. The rates previously ranged between Sh30 and Sh320
for salaried workers.
Mr Gitahi added that NHIF should
ensure that the implementation of the
new rates is not challenged.
We must consider that once the
annual period of claim expires it becomes a saving for the NHIF and has
no future benet to the contributor,
he said.
The federation is set to meet with
NHIF to discuss the issue. In the meantime, it has advised members to base
the deductions on basic pay and not
the gross pay.

Thee tonnes of ivoy fom Kenya seized in Thailand


More than three tonnes of elephant
ivory have been found at a Thai port
stashed in a container shipped from
Kenya, customs said yesterday, the
second huge haul of tusks from Africa
in less than a week.
The discovery, which would be worth
millions of dollars on the black market,
was destined for Laos where the illegal
ivory trade ourishes.
Some 511 pieces of ivory, weighing
over three tonnes, was found on April

25 in a container marked as tea leaves


transported from Mombasa, Kenya,
and on to Laos, Thai customs said in a
statement. Scores of whole tusks- some
nearly two metres long- were among the
pieces seized.
A record four tonnes of African elephant ivory was seized at Bangkoks
main port on April 20, in a container
that arrived from the Democratic Republic of Congo and was also destined
for Laos. Once in neighbouring Laos,

authorities believe the ivory would


likely be sold on to buyers from China,
Vietnam or back into Thailand, countries where ivory ornaments are coveted
despite fears the trade is pushing wild
elephants to extinction.
Laos is increasingly being used as
a major transit point for such large volumes of illicit ivory and other wildlife
products, Chris Shepherd of conservation group Trac told AFP.
The increase in large-scale seizures

is of great concern. Whether the ivory is


coming from freshly killed elephants, or
from stockpiles of ivory in Africa, needs
to be investigated, he added.
Conservationists say poaching and
conict has destroyed large numbers of
African elephants, prompting experts
to warn the species could be wiped out
within decades. Thailand has launched
a crackdown on the ivory trade amid
mounting international pressure.
-AFP

Federation of Kenya Employers


chairman Linus Gitahi. JEFF ANGOTE

Tuesday April 28, 2015 | BUSINESS DAILY

CORPORATE NEWS
NEWS I REVIEWS I ANALYSIS

Ex-Telkom sta want boad pobed ove etiement cash


RETRENCHMENT Petitioners say they were misled

Lobry, Telkom Kenya chief executive,


board members Daniel Delestre, Gerald
Ries, Oliver Froisat and Ashif Kassam
to appear before MPs over the settlement of retrenched stas dues.
The petitioners also want Treasury
Secretary Henry Rotich summoned
by virtue of being the holder of the 30
per cent government shares in Telkom
Kenya after dilution of the shareholding from 49 per cent in favour of France
Telkom on December 31, 2007.

into abandoning a Sh3.2 billion severance pay claim


retrenchment. The settlement was initiated by Telkom Kenya and resulted
Former employees of Telkom Kenya in loss of close to Sh2 billion which the
want Parliament to investigate the petitioners agreed to forfeit on assumpboard of the telco over failure to pay tion that Telkom Kenya truly intended
compensation to 997 retrenched sta to settle the matter immediately, states
the petition which will be tabled in the
in 2006.
In a petition led in the National As- House this afternoon.
sembly dated April 24, the former emThe Constitution requires Speaker
Justin Muturi to promptly reployees are also seeking
Parliaments intervention
lay any petition from memto have lawyer Mohamed
bers of the public to MPs.
The settlement
Nyaoga and company secThe petitioners state that
was initiated by it later occurred to them that
retary Ngana Ivy answer
to claims of conict of
Telkom Kenya the settlement deal was a
interest, misconduct and
fraud and outright misrepand esulted in resentation by the board,
an attempt to defraud peloss of close to directors and advocates.
titioners through misrepresentation.
There is also a case of
Sh2 billion ...
The petitioners claim
conict of interest wherein
PETITION BY FORMER TELKOM
that the respondents
Mr Mohammed Nyaoga, who
KENYA EMPLOYEES
is a member of the board of
fraudulently, through
Telkom Kenya and also an
misrepresentation, led
them into abandoning a claim of advocate, was instructed to act on the
Sh3.2 billion severance pay and set- matter on behalf of Telkom and persontle for an out-of-court sum of Sh1.4 ally steered the negotiations leading to
billion as compensation following the the settlement deed, the petitioners, led
BY EDWIN MUTAI

Interrogated by MPs

National Assembly Speaker Justin Muturi. Retrenched Telkom Kenya employees


petition will be tabled in the House this afternoon. FILE
by John Ochanda, say. They want the
Justice and Legal Aairs Committee
chaired by Ainabkoi MP Samuel Chepkonga, a former Communications Commission of Kenya chief executive ocer,
to summon 12 individuals among them

suspended Investment Secretary Esther


Koimett and former KenGen managing
director Eddy Njoroge.
Mr Njoroge is the chairman of Telkom Kenyas board of directors. The
former employees also want Vincent

Tata opens Nakuu dealeship


fo John Deee fam machiney
BY MUGAMBI MUTEGI

Tata Africa Holdings has opened a


new dealership in Nakuru that will
exclusively sell agricultural equipment manufactured by Chicagobased rm John Deere.
Tata Kenya, a subsidiary of Indias Tata International, says the
new dealership is targeting farmers in the South Rift region,a signicant contributor to the countrys
food basket.
Demand for agricultural equipment like tractors is mainly driven
by farmers, the private sector, national
and county government.
The roll-out will see the introduction of a new business centre in
an area that has substantial agricultural activities where agricultural
machines are used to facilitate and
improve eciency in food production
through mechanisation, said Tata in
a statement.
John Deere manufactures plows,
tractors, fertiliser spreaders, self-propelled sprayers and combine harvesters among several other highly spe-

Uasin Gishu Governor Jackson


Mandago (second left) and Tata ofcial
David Nyoike look on as Charles Boit
tries out a John Deer tractor at the
re-launch of the farm machinery in
ldoret town in 2013. FILE

cialised farming equipment.


Tata Kenya has held the dealership rights for John Deere equipment since 2012.
Government-sponsored agricultural projects like the Galana-Kulalu
irrigation scheme at the Coast and
large scale projects by individual
farmers have increased demand for
farming equipment.
This demand has seen automotive
rms like Toyota Kenya venture into
the business, with last years launch of
the Yanmar and Case tractor brands

in a diversication strategy aimed at


cushioning it from a sluggish saloon
car market.
Other rms in the tractor business
include CMC Motors which sells the
New Holland and Bobcat brands and
FMD East Africa which deals in the
Massey Ferguson brand.
The new John Deere facility will
see competition in this sector increase, as manufacturers jostle for
customers.
In February, John Deere signed a
deal with Chase Bank to oer operator training, business training and agronomic skills as well as aordable
credit to equipment purchasers.
The dealerships commercial,
after-market, technical support and
service teams are committed to ensuring that all customers enjoy and
maintain real machine uptime so
that they can enjoy proper return on
their investment, said John Deere in
a statement.
The John Deere solutions for land
preparation, seeding, crop care and
harvesting introduce complete solutions for the farming future.

Attorney General Githu Muigai, the


principal adviser of the government,
is also listed among those to be interrogated by MPs.
The petitioners have also enjoined
Telkom Kenya as respondents.
They also want the House to investigate claims that the telco is about
to collapse and that France Telkom,
which owns 70 per cent of the company, is in the process of being sold to
third parties.
They want the House to take measures to protect the governments interests in the rm and ensure that it fulls
its obligations to the petitioners.
emutai@ke.nationmedia.com

Phoenix
Aviation will
operate the
aeroplane to
Lodwar. FILE

Tukana ailine launched to


connect Kitale and Lodwa
BY SAMMY LUTTA

A Turkana-based airline has been


launched to connect Kitale and Lodwar towns, a route where motorists
are frequently attacked by bandits.
Operated by Phoenix Aviation, the
airline will have two ights a week between the Wilson Airport in Nairobi
and the North Eastern territories.
The 12-seater plane plying the
route belongs to the Turkana Basin
Institute (TBI), an organisation that
was founded by renowned paleoanthropologist Richard Leakey.
Airline operations manager
Patrick Eyoko said every Monday
and Friday the plane will y from
the Wilson Airport then to Marsabit,
Ileret, Loiyangalani, Lodwar, Kitale
(nal destination) and on return it
will go back to Lodwar, Marsabit and

return to Wilson airport. Mr Eyoko


said they will also provide private
charter services across East Africa
for $1,350 (Sh127,102) per hour. Our
charges are based on a half-full plane,
it will cost $140 (Sh13,181) per a passenger from Kitale to Lodwar, said
the operator-in-charge who pointed
out that the fare could drop depending on demand.
TBI is a scientic research institution that studies fossils in the Turkana
basin which together with National
Museums of Kenya and Turkana county government erected a Turkana Boy
Monument that will be both a tourism
and a historical site for Kenya.
The introduction of Air Turkana
comes after a 35-seater Safarilink Airline ight was launched in September
last year to tap the opportunity that
was created by discovery of oil.

BUSINESS DAILY | Tuesday April 28, 2015

CORPORATE
NEWS
COUNTY BUSINESS

TansCentuy lines
up ight issue to pay
Sh7.5bn Euobond

Milk deliveies
to Bookside
ean Muanga
fames Sh250m
BY WAINAINA WAMBU

CASH CALL Shareholders expected to pump

Milk processor Brookside paid Sh250


million to Muranga dairy farmers last
year, a 10 per cent jump in their earnings from the previous year.
Brooksides director of milk procurement John Gethi said the company partnered with the Muranga
County government to collect raw
milk from farmers.
The county government, through
the Muranga County Creameries, collects milk from farmers, chills it at
Brooksides cooling stations at Maragua in Muranga and Othaya in the
neighbouring Nyeri County.

in nearly double rms market capitalisation

a third of its listing price of Sh50.


The exchange rate is also xed
Investment rm TransCentury is set
at Sh80.49 to the dollar, but this has
to launch a rights issue whose prodeteriorated to the current average
ceeds will be used to repay $80 million
of Sh94.
(Sh7.5 billion) convertible Eurobond
It is these major deviations in the
two factors that has seen the rm opt
it issued in 2011.
The decision, communicated to infor the rights issue ahead of the bonds
vestment analysts, is aimed at boostmaturity on March 25, 2016.
ing the companys cash position.
The bond has an annual interest
rate of six per cent besides
The cash call will see
an additional six per cent
shareholders pump in
to be paid at the end of its
nearly double the comTansCentuy
panys current market
life for investors who will
capitalisation of Sh4.5 will undetake a not have converted their
billion, with those sitting
into shares.
ights issue befoe portion
out the rights issue facing
Only a small portion
end of 2015
signicant dilution.
of the debt was converted
TransCentury will uninto shares amounting to
SIB NOTE
dertake a rights issue be6.9 million units in 2011,
fore end of 2015 to nance
with the investment rm
the repayment of the outstanding 2011
having set aside a total of 150.9 million
bond of approximately $80 million,
shares to accommodate a potential
said Standard Investment Bank (SIB)
full conversion.
in a note to investors.
Conversion of the debt into eqThe company conrmed the rights
uity would have eased pressure on
issue plans.
TransCentury which has little cash
SIB noted that debt conversion into
on hand.
equity is unlikely because of TransThe rm ended 2014 with a negative cash ow of Sh454.7 million, with
Centurys depressed stock price and
the current weakening of the shilling
most of its assets held in the form of
against the dollar.
property, equipment and receivables.
TransCentury is expected to publish
The bond conversion is set at between Sh40 and Sh49.6, but the stock
details of the rights issue, including
price has dropped to lows of Sh16.1 or
the expected gross proceeds and pricBY VICTOR JUMA

Key driver of economies


TranCentury CEO Gachao Kiuna reviewing the ongoing construction works at
the GZ Industries Aluminium Cans Factory near Emali. TransCentury is planning
a rights issue. FILE
ing of the new shares, in the coming
months.
Part of the money raised from the
cash call, together with an undisclosed new borrowing, will be used
to nance energy and road projects
among others.
Besides the fundraising, the company also announced that it had
teamed up with a partner to raise
its stake in its subsidiary Civicon to
78 per cent.
Its interest in Civicon, an engineering rm, previously stood at 62 per
cent. We view this transaction positively, SIB said of the Civicon deal.
Civicon business has a strong
pipeline of signed projects (double

current signed and running projects of


Sh7.7 billion) which we view as positive
for future revenue growth for TransCenturys engineering division.
The investment rm made a net
loss of Sh2.2 billion in the year ended
December compared to a net prot of
Sh626.4 million the year before.
The performance was partially
driven by the Sh1 billion loss incurred in divesting from Rift Valley
Railways.
The companys revenues also
dropped 13 per cent to Sh10.2 billion in what it attributed to delayed
projects.
vjuma@ke.nationmedia.com

Dairy is clearly becoming the leading generator of family income in


Muranga County. We have responded to this reality by partnering with
the county government in raw milk
collection,
we have also set up milk collection
booths at Kahuro, Murarandia, Kagunduini, Gitiani and Karangi centres where farmers can deliver their
milk, said Mr Gethi.
The county government of
Muranga has worked hard to position dairy as a key driver of rural
economies. We intend to retain our
position as the preferred market for
farmers milk in the area.
Brooksides sustained campaign
to have contracted farmers adopt
modern herd management methods had led to growth in raw milk
supply, he said.

Training has had an impact

BAT seeks photos of gaphic health wanings


parliament does not stop the ministry
from providing it with a digital storage
device and guidance documents on the
application of the pictograms.
The digital storage, BAT says would
give clarity as to the size of the health
warnings that the packets should carry
and how to apply them.
BAT made the revelation even as
it maintained that its is still opposed
to the regulations, terming them unconstitutional.

BY SANDRA CHAO-BLASTO

Cigarette manufacturer British American Tobacco Kenya (BAT) wants the


Ministry of Health to provide details of
graphic health warnings to be printed
on packets ahead of a June deadline.
BAT says it has written to Health
Secretary James Macharia and the Tobacco Control Board requesting the
information, but none of the parties
has responded.
As a result, Simukai Munjanganja,
the rms head of legal aairs says in
court documents that BAT is unable to
comply with provisions of the Tobacco
Control Regulations 2014.
The rst respondent has failed to
provide the information sought on
the basis that the regulations have
been tabled before the Parliament,
he said.

Shut down
A man smokes a cigarette. BAT is
ghting new tobacco regulations. FILE

The Health ministry is yet to respond to BATs application.


The cigarette maker argues that
the tabling of the regulations before

The rm has moved to the High Court


seeking to halt implementation of the
rules that are expected to come into
force by June 5 on grounds that the cost
of complying with will be enormous
and would may eventually force some
rms in the industry to shut down.
Under the new regulations players

in the industry will be required to pay


a Solatium Compensatory Contribution every nancial year amounting
to two per cent of the value of tobacco
products that have been manufactured
or imported.
The rm says that the contributions
are oppressive as tobacco manufacturers are already exposed to other taxes
adding that they had paid Sh14 billion
in taxes in the last nancial year.
The Solatium contribution will
have a signicant eect on the petitioner putting at risk further investment and the more than 80,000
direct and indirect employment opportunities generated in Kenya, argues BAT.
The new graphic images are meant
to discourage smoking of cigarettes.
The matter will be mentioned before Justice Mumbi Ngugi on May 6.

The increase in earnings shows that


our dairy training courses have had
an impact on production volumes. We
intend to increase the number of training courses so that more dairy farmers benet from knowledge on animal
husbandry, said Mr Gethi.
Brookside has set up a demonstration farm in Maragua where farmers
learn best practices in dairy production.
About 160,000 farmers countrywide supply the rm with milk.
The rm increased raw milk prices
by Sh2 last month to Sh40 for each
kilo delivered.
Brookside, he said, will continue
encouraging clean milk production to
ensure that the product bought from
farmers for processing is free of inhibitors and contamination.
He also urged farmers to control
livestock diseases by regular vaccination, especially of infectious diseases
such as mastitis, which he said lowers
milk production in sick animals.

Tuesday April 28, 2015 | BUSINESS DAILY

IDEAS & DEBATE


OPINIONS I REVIEWS I ANALYSI S

INVESTMENT Joint economic plan will only translate to development with adequate cash

Moe incentives
needed to lue
county investos

veloped with the support of Deloitte


East Africa, identies seven strategic
pillars of growthagriculture, tourism, health, education, nancial services, ICT and infrastructure.
The challenge will be to breathe
life into these documented ambitions which are on paper and bring
them to fruition.
BY THOGO JOSEPH
This can be done through establishcouple of years ago, a student
ment of an agricultural commodities
from a high school in Nairobi
exchange, creation of a lake region
presented a memorable sotourism circuit, set up of specialty
liloquy during the National Schools
hospitals in each county, creation of
Drama Festivals which had the presieducational centres of excellence, esdent in stitches.
tablishment of regional banks, creaThe narrative which sought to bring
tion of a lake-region ring road as well
to light the benets accruing from devas improving ICT infrastructure.
olution, tells the story of a ctional
This road map is designed to harness and steer development eorts by
character, Sylvester Ogwamfumbe,
leveraging on existing assets in the rewho moves to Nairobi from his rural
gion, addressing constraints and denvillage prospecting for greener pastures only to nd that life in the city is
ing key steps that leaders and citizens
not what it is made out to be.
of the region can take to realise the
After enduring untold and humilishared vision.
ating hardship in Lower Karen, the
It is, therefore, anticipated that the
disillusioned young man decides to go
development projects will be spread
back to his Nyamthoi county to start a
across the dierent counties Bomnew life.
et, Bungoma, Busia, Homa
Bay, Kakamega, Kericho,
The story ends with
Incentives
the young man boasting
Kisii, Kisumu, Migori,
about how his business
Nyamira, Siaya, Trans
should be
ventures have taken
Nzoia, and Vihiga.
fomulated
o, the types of clothes
Partnerships among
though a
these counties and the centhat is wearing and the
tral government is essential
dierent countries he
combined
and would create a practihas visited as a result
eot of county
cal framework through
of taking advantage of
govenments
which the county governthe opportunities presented by devolution in
ments eorts can be pooled
and the cental
his county.
to harness the abundant
govenment
Devolution
has
natural resources, build
brought
previously
on existing strengths and
non-existent developaddress challenges.
ment and opportunities
These projects will require the county governments to
closer to citizens. Within the devolved structure, Kenyans can now
sit-down-and-break-bread with the
participate in the planning and imcentral government and the private
plementation of development agenda
sector to ensure that the blueprint
in their region.
becomes reality.
It is perhaps drawing on this that
The Constitution authorises the
central government to levy or provide
at last weeks Governors Conference
exemptions in relation to income tax,
in Kisumu, President Uhuru Kenyatta launched the Lake Basin Economic
value added tax, import and export
Blueprint; a development master plan
duty and excise duty while county
initiated by 10 counties which identigovernments are only allowed to
es strategic areas of focus to realise
levy property taxes, entertainment
their growth potential.
taxes and other taxes authorised by
The blueprint, which has been destatute.

Other Voices
Kim Jong
North Korean leader

Andray Abrahamian (Reuters)


Recent rumours about North Korean
textbooks exhorting a young Kim Jong
Uns prowess as a driver and sailor have
sparked a renewed cycle of blogs and
articles musing on just how weird North
Korea is. Why is their propaganda so
odd, we ask. Do they believe it all? It is
hard to know whether they are even
true or not. It seems unlikely that North
Korean textbooks really are claiming
Kim could drive at age three, as this is
pretty much physically impossible. But
beating an adult in a sailing race when
9-years old? Sure, why not?

Barack Obama
US President

A trader weighs sh. Counties in the lake region are set to benet from a joint
economic plan. FILE
It unlikely that the 13 county governments will have enough from these
taxes to nance the projects. They require assistance from the central government which should be in the form
of either additional revenue allocation
or additional targeted tax incentives
aimed at encouraging private sector
participation, or both.
With alleged misappropriation
of amounts disbursed by the central
government plaguing the devolution
system, perhaps the targeted tax incentives might be the better option to
ensure that the envisaged benets are
realised at the grass roots level.
Already, the current law allows deduction of tax on interest from infrastructure and social services bonds.
Interest income accruing from
such listed bonds used to raise funds
for infrastructure and social services
is exempt from tax provided that the
bonds have a maturity of at least three
years.
In addition, expenditure of a capital
nature incurred for the construction
of public schools, hospitals, roads or
any such social infrastructure is tax
deductible, with prior approval of the
Finance minister.
There is also the 150 per cent investment deduction which is available to
investments exceeding Sh200 million
outside Nairobi, Mombasa or Kisumu
as well as industrial building deduction on capital expenditure incurred

on the construction of industrial buildings like hotels and schools.


All these incentives should be on
the lake regions doing-businessguide when marketing the blueprint
as an investment opportunity to the
private sector.
The question to the private sector is
what can you do for your county? It is
not what your county can do for you.
However, one may argue that
these incentives have been in place
for a while now and have done little
to stimulate up-take by the private sector. Perhaps it is time to come up with
dierent industry-specic and resultoriented incentives.
Focus should perhaps shift to focus
intangible incentives, for example, taxbreaks for the services industry. In this
case, services provided in relation to
the blueprint.
These additional incentives should
be formulated through a combined effort of county governments and the
central government and should address the unique aspects of the lake
regions operating environment.
These Lake Region 13 have thrown
down the gauntlet for the other 34
counties who now have to go to the
drawing table.
Mr Thogo is a tax expert at Deloitte.
The views expressed in this article are
personal.
E-mail: jthogo@deloitte.com

Anne-Marie Slaughter
(Project Syndicate)
Whatever Americas Republican Party
tries to claim during the 2016 presidential election campaign, Obamas policy
of engagement has worked, enabling US
to shape events in even the most closed
countries. So why do pundits continue
to debate Americas supposedly declining global inuence? One answer is that
domestic political dysfunction has severely handicapped the president.
Abu Bakr al-Baghdadi
Isis leader

Ranj Alaaldin (Guardian)


The leader of so-called Islamic State
(Isis), Abu Bakr al-Baghdadi, has reportedly been seriously wounded and is no
longer in control of the jihadi organisation following an air strike in western
Iraq. The development, once conrmed,
should be welcomed. But the international communitys efforts to defeat
Isis still have some way to go. Eliminating Baghdadi will, above all, undermine
Isiss aura of invincibility, something
that has allowed it to recruit international jihadis.

10

BUSINESS DAILY | Tuesday April 28, 2015

EDITORIAL & OPINION

Published by the Nation Media Group, Kimathi Street, Nairobi

Linus Gitahi: Chief Executive Ofcer | Tom Mshindi: Acting Editorial Director
Ochieng Rapuro: Managing Editor
P.O.Box 49010 GPO Nairobi Telephone: 254 20 328 8104 Fax: 254 20 214849
Email : bdfeedback@nation.co.ke www.bdafrica.com

Resolve hitches slowing


down Mumias opeations

umias Sugar Company


is once again in the news
for the wrong reason.
This time, leaking pipes are said
to have disrupted its operations,
limiting cane milling to just ve
days in a week.
One of the immediate impacts of
the leakages has been the spillage
of sucrose, something that is forcing the loss making miller to crush
more cane to generate reduced
amount of sugar.
As such, the cash-strapped miller
which closed its water bottling plant
just last month - is not only paying for
idle labour after cutting its operation
time from seven to ve hours but also
has to pay more for raw materials to
be wasted during processing.
Latest data shows that the rm
currently uses 17 tonnes of cane to
produce one tonne of sugar, seven
tonnes more than 10 tonnes of
sugarcane that an ecient factory
requires.
Yet this unfortunate turn of events
is by no means surprising. The rms
management had long seen it coming
when they shut down their machines
for regular maintenance ve months
ago, but failed to muster adequate
funds for spare parts. A few weeks
down the line, that funding hitch
looks set to trigger even a more vicious cycle of failures.
Because it is not crushing eciently, very soon it will nd it dicult not only to pay farmers but also

its workers. Moreover, disruption


in one type of operation ends up affecting other revenue stream chains
that depend on crushing of cane for
production.
Generation of electricity at
Mumias co-generation plant, for
instance, relies on bagasse while
ethanol production depends on the
molasses by-product. In short, the
miller risks stopping its operations
altogether if the current problem is
not addressed in time.
To be sure, the rms production disruption occasioned a record
drop in deliveries as farmers seek
alternatives to ensure that their
cane is crushed within 48 hours of
being cut.
That would not be a comforting
scenario for a publicly listed rm that
is looking to taxpayers and shareholders to help raise some Sh5 billion in
bailout package.
Mumias is already grappling with
litany of negativities, resulting from
an uneasy past that has been punctuated with accusations that range
from accounting malpractice to outright theft by managers. The rms
management must deal decisively
with the problem of leaking pipes to
ensure that it doesnt end up becoming yet another scandal.
It is encouraging that the rms
management has promised to once
again shut down its machines for one
week to repair the leaking pipes once
the spare parts land in the country.

NSE must play by maket ules

he capital markets regulators once again worked hard


to plant seeds of doubts in the
minds of the public over their commitment to nurturing the integrity
of the Nairobi Securities Exchange
(NSE) through their failure to abide
by the rules that govern similar markets globally.
For reasons that are only known
to the principal actors, two directors of nancial services rm
Britam resigned on April 22 and
the same was promptly reported
to the Capital Markets Authorities
(CMA) and the NSE as required
by law.
But the agencies, which cannot
claim not to have an understanding
that removal of information assymetry among investors is the reason
such reporting is required, decided

to sit on the information till Friday


April 25 at 7:30pm -- long after the
markets closed for the week.
Even then, the NSE only shared
the information on the resignation
of one of the two directors .
Ordinarily, the NSE immediately shares similar reports with
the media for public consumption - allowing all investors to trade with
the same amount of insight.
It needs no genius to see that
such kind of inaction does plant
the seeds of doubt in the minds of
ordinary investors as to the commitment of the CMA and NSE to
nurturing a market of integrity that
the Kenyan economy needs.
The NSE and CMA may deny it,
but all they have done is to tell everyone that some of the listed rms
are more equal than others.

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

Your qualications are impeccable... Unfortunately youre too gorgeous,


hiring you is risking a sexual harassment suit...

Fetilise secto must be fully libealised


NELSON MAINA
AGRICULTURE

hen government stepped


into the fertiliser business,
through importation and
distribution, the idea was to ensure as
many farmers as possible had access to
this all important component of crop
production at subsidised rates. Ironically, it has left all the players frustrated
and is has taken a toll on food security in
the country. From the government itself,
the private players and the farmers, everyone seems to be on edge.
For government, its cardinal role is
always to be actively involved in the entire fertiliser value chain from importation, distribution, and ensuring the fertiliser get to the intended users in time
for planting. But government seems to
have performed dismally on this front.
Right from poor handling of importation
which either leads to delays to importation in lower quantities that cannot
match the demand, the cycle has been
predictable in every harvest.
In fact, a report by Bridgenet Africa
placed delayed fertiliser distribution to
farmers as one of the causes of the 2009
drought that placed over 10 million Kenyans under food relief and led the then
President Mwai Kibaki to declare it a national disaster. Then there are the leaks
and pilferage in the distribution chain,
which the government has equally failed
to arrest. Key players here include the

greedy middlemen and cartels who buy


the subsidized fertiliser then repackages
it and sells it exorbitantly to unsuspecting
farmers. It has become commonplace to
hear that farmers especially in food baskets that should be supplying the bulk of
the countrys food narrate how they have
never seen or come across any subsidised
fertiliser and in fact have gone on to buy
their own following multiple delays in
planting as they waited for the government subsidy. The subsidy has never
beneted the very same people it set
out to benet; the small holder farmers.
The litany of woes by the farmers goes to
show how the government has lost grip
of one of the most crucial aspects in food
production.But the business of government involvement in fertiliser production
has equally had a negative eect on the
private sector players involved in fertiliser
distribution. While the private sector appreciates the crucial role of subsidised
fertilizer to farmers, it beats logic when
the same fertilizer is the cause of our
food security woes since it is not achieving the intended purpose. Government
only supplies 30 per cent to the fertiliser
to the farmers. But the millions of smallholder farmers in the country peg their
hope on that subsidised fertilizer which
they eventually dont get.
A simple two-pronged approach
would work for the benet of all. Government if keen on fertiliser distribution
should take and own the whole process a
100 per cent guaranteeing farmers timely
and hassle free access to the fertiliser. The
second approach which is more tenable
and practical would be for the government to step out of the fertiliser distribution chain and only be involved at the

VIEWS FROM ABROAD

policy level. This would mean creating a


favourable environment for private players to import, package and distribute the
fertilizer at reduced rates. Incentives like
reduced taxes would also inspire private
sector players to slash their prices for the
benet of the smallholder farmers.
The subsidised fertiliser costs Sh1,500
for CAN and Urea while the private companies sell them at between Sh1,900 to
Sh2,500. Studies have shown that the subsidised fertilizers serve a paltry 20 per
cent of the farmers leaving a staggering
80 percent unattended. Here is where the
government needs to do its math. Private
companies can easily come down to the
Sh1,500 subsidised price but the incentives are conspicuously missing.
Another added advantage with the
private sector being involved is the rich
and harmonised distribution channel through stockists and distributors.
Such channels have proven eective in
the sale of other agro inputs.
History has shown how liberalising
the market achieves results. In early 90s
after the elimination of retail price controls, import licensing quotas, foreign
exchange controls, and the phase-out of
external fertilizer donation programmes
that disrupted commercial operations,
Kenya has witnessed rapid investment in
private fertiliser distribution networks,
with over 15 importers, 600 wholesalers
and 10,000 retailers now operating in the
country. Full liberalisation would mean
elimination of government involvement
in the fertiliser supply chain and letting
the market forces and healthy competition prevail.
The writer is the PR and communications
manager, Elgon Kenya Limited

Opinions fom aound the wold

Iran wont play by the rules

Social media and child abuse

UKs warped logic on migrants

The announcement last month of a preliminary


agreement between
NEW YORK TIMES
NEW YORK
the US and Iran has led
some to believe that Tehran will now enter the
international system as a responsible actor.
But such optimism ignores the fact that Irans
current government still bears the imprint of a
long imperial history and long-standing Persian
regional ambitions. Iran is a country seeking
to assert its dominance in the region and it will
not play by the rules.

A record number (1,421) of minors were


abused after making
THE JAPAN TIMES
TOKYO
contact with unknown
adults on social media, a new report from the
National Police Agency has stated.
The reality of the online world, where people
can attempt to contact anyone, is one
where children and minors need to carefully
scrutinise unknown people. For many young
people, the Internet appears to be a virtual
world.

The British governments response to the


boatloads of refugees
THE GURDIAN
LONDON
trying to make it across
the Mediterranean was driven by a warped
logic. Tory minister Baroness Anelays claim
last year that supporting search and rescue
missions for sinking vessels was a pull factor,
encouraging more migrants to attempt the
dangerous crossing convinced others in the
EU. It has taken more than 1,000 deaths over
two weeks to force a reverse in EU policy.

Tuesday April 28, 2015 | BUSINESS DAILY

11

EDITORIAL & OPINION

Blame leades if devolution fails in you county


HARRISON IKUNDA
DEVELOPMENT

n course of my work I have had


opportunities to visit many
counties. I have had opportunities to interact with numerous
county leaders, among them MCAs
and county executives. Governors
have been rare to meet principally
due to their nature of work and the
many people who seek appointments with them, thus limiting
the opportunities.
Recently I was in West Pokot,
Turkana, Busia, Uasin Gishu, Baringo, Trans Nzoia, Narok and Laikipia
on a research mission.
In course of my meetings with

several MCAs from various counties (not just from the aforementioned) I did nd some of them very
informed on various issues aecting
their wards and the county in general. There are numerous challenges
and constraints aecting them but
some are very determined.
This notwithstanding there
are other structural and political challenges aecting counties.
Some of the laws being made could
be wanting and some ill-informed.
In other areas across the country
MCAs and governors relationship
is feckless.
In some areas it is the access to
the till that keep peace. Some of
impeachments or threat of them

Letters

are quite selsh, ill-informed or


as a result of misuse of the law to
self-serve.
By the way, I had a meeting
with some MCAs and if they take
you through their journey of being
elected it read of almost a harrowing experience. The kind of money
spent and the organization involved
means the fortunes spent from their
pockets or assets so to say have to
be recovered somehow.
How they recover is a matter of
conjecture. Some of the sponsors of
MCAs, MPs, Governors, and Senators among the elected ocials expect to be rewarded. This involves
jobs, tenders and such favours. This
is part of the reason the politics at

the highest level of presidency in


Kenya is also a tough job to crack.
The counties that will fail to
achieve signicant development
have their own leaders to blame as
a starting point.
The citizens in those counties
cannot claim that they did not have
an opportunity. This is why electing the right people not following
the politics of the stomach; clan or
nepotism will make all the dierence. If you elect the wrong man
or woman the consequence are for
you to bear squarely. Promises are
easier made at the election time,
implementation is the arbiter.
The writer is a Nairobi-based
researcher and consultant

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

Why security remains a national government function

he Constitution provides for


two levels of government
the national government
and 47 county governments. It
also clearly outlines the functions
of each levels of government in the
Fourth Schedule. The national government has already devolved over
90 per cent of the devolved functions and resources to the county
governments.
However, it looks like the county
governments are not satised with
their constitutional functions. They
have been shouting on the top of
their voices to have some national
government functions such as
security, education and environment devolved to the county governments.
This is outrageous especially
given that these governors have
failed to eectively deliver their
own functions as outlined in the
constitution.
Security is a national government function and it should remain
as such. Kenyans overwhelmingly
ratied the constitution with full
knowledge that this function was

Villagers protest against attacks by a criminal gang. FILE


under the national government.
This was for a simple reason, that
Kenya is not a federal state but a
unitary state with devolved units.
The government cannot aord
to fragment this country by creating a police service whose loyalty
is divided between the national
government and the county governments.
Like all other responsible citizens, governors should share with
security agencies any information
that is crucial to the security of this
country.
Therefore, governors should

stop misleading Kenyans that


they can only contribute to the
improvement of this countrys
security by being chairmen of the
county security and intelligence
committees and placing the Administration police under their
command.
Security as a function should
be a uniting factor for all Kenyans.
Putting the Administration Police
under governors is akin to creating tribal armies which is a threat
to our unity and national security.
This should never be allowed.
I would also like to give the

governors free advice, instead


of wasting time ghting over national government functions, they
would rather concentrate on their
functions.
Their in-trays are full, our health
services are in shambles, our ECD
infrastructure is still poor, most
Kenyans have no access to clean
water, our agricultural sector needs
reshaping and sothis calls for the
governors attention.
Kenyans want to see governors
transforming counties by carrying
out their constitutional mandates
and not ghting for the national
government functions.
Lastly, governors should
know that they are not a panacea
to Kenyan problems. They are at
loggerheads with MPs, senators,
the county assemblies and the national government
If the governors want to take
over all the national governments
functions, then why do we have the
national government? They want
to take over power through the
back door!
LAIRUKA SINDANI, Kitui

Policing wall between Kenya, Somalia will be a tough task

he construction of a
wall between Kenya
and Somalia is reported
to have started in earnest from
the Kiunga area bordering the
Indian Ocean.
It is aimed at preventing
illegal migrants, especially AlShabaab terrorists, from entering the country.

How the idea of the wall was


mooted remains a mystery to
most Kenyans.
It required extensive public
dialogue, followed by a parliamentary vote on the total cost
and the winning contractor
having been competitively selected.
Policing the 700 kilometre

- long wall will be a herculean


task. Moreover, insignicant effort is currently made in patrolling the border.
Serious and committed nations use helicopter gunships
tted with powerful cameras.
Theres no guarantee that
holes will not be drilled through
the wall or tunnels dug under it,

which will only serve as illegal


toll points for our gullible security personnel.
Shall we, in future, contemplate building a similar wall
to prevent cattle rustlers from
Uganda and Ethiopia from stealing our livestock?

AGGREY KULALI
Vihiga

MPs should
stand up fo
inteests of
ou childen
JOHN TSINJE
EDUCATION

he Kenya National Union of Teachers


(Knut) has threatened to call a strike
should Education secretary Jacob
Kaimenyi fail to de-gazette the Basic Education Regulations, 2015, on the grounds that
it seeks take heads of schools to task over
how they run school nances.
A section of MPs have faulted the minister for allegedly antagonising the teaching
fraternity by developing policies that oends
the teachers. As a parent, I nd the position
Parliament has taken intriguing. What it is
saying is that the Prof Kaimenyi should not
take any action that oends teachers.
Parliament is sending a dangerous message to the country: that Prof Kaimenyi
should not address the urgent policy glitches
that have undermined the ability of the government to improve the quality of education to the children in this country; that the
policy and governance framework of basic
education institutions are sound; and that
he should not meddle with them.
The fact of the matter is that education
needs shock therapy. We have serious dysfunctions that are aecting education in this
country. So much needs to be done at policy,
institutional and operational levels to make
education work for Kenya.

Policies
I understand that the substance of the
policies that Prof Kaimenyi is undertaking is anchored in Prof Douglas Odhiambo
Taskforce Report, 2010. The Task Force was
established to re-Align the Education Sector to the Constitution of Kenya 2010 and
Vision 2030landmark policy documents
that will dene the destiny of this country
for ages.
The ministry is said to have developed
a policy rework on EducationSessional
Paper No. 14 on Education and Training
and several pieces of legislations the most
relevant of which is the Basic Education
Act, 2013.
In issuing the Basic Education Regulations, 2015, the fees guidelines on Secondary
School fees, banning of ranking of schools
and students in national examinations, Kaimenyi is simply implementing the will of
parliament as embodied in the Basic Education Act, 2013 and the policy framework
that inform matters on education.
Instead of Knut dragging its members to
the streets, it should in fact petition the High
Court to declare the Basic Education Regulations, 2015, or sections of it, as null and void
by reason of its unconstitutionality.
As a parent, I urge Parliament to resist the
temptation of serving the interests of union
ocials . Parliament is betraying its political
role by pandering tyo the whims of teachers
unions. The interests of parents, guardians
and children needs as much protection.
The writer comments on topical issues

12

BUSINESS DAILY | Tuesday April 28, 2015

NEWS INDEPTH

Swelling Ethiopian emigation casts


doubt on touted economic miacle
GOVERNANCE Disenchantment marked by claims of repression inequality and youth

unemployment spread in a country celebrated for its impressive growth in the recent past

he 28 Ethiopian migrants of Christian


faith murdered by the Islamic State
(IS) on April 19 in Libya had planned
to cross the Mediterranean Sea in search of
work in Europe.
Commenting on the killings to Fana
Broadcasting Corporation (FBC), Ethiopian
government spokesperson Redwan Hussien
urged potential migrants not to risk their
lives by using dangerous exit routes.
Husseins call sparked anger among hundreds of Ethiopian youths and relatives of
the deceased, who took to the streets in the
capital Addis Ababa this week before the
demonstration was disbanded by the police,
local media reported.
Protestors cited the governments lukewarm response to the massacre of Orthodox Christians for their outrage, the Addis
Standard reported.
Later in the week, during a public rally
organised by the government in the capital,
violence again broke out between security
forces and protesters resulting in injuries
and the detention of over a hundred protesters, local and international media reported.
Almost two-thirds of Ethiopians are
Christians, the majority of those Orthodox
Copts who say that they have been in the
Horn of Africa nation since the rst century
AD as well as large numbers of Protestants. In the widely-reported incident in
Libya, IS militants beheaded 16 Ethiopian
migrants in one group on a beach and shot
12 in the head in another group in a desert

area. Eyasu Yikunoamilak and Balcha Be- ate all migrants in dangerous foreign counlete, residents of the impoverished Cherkos tries, the Washington-based VOA Amharic
neighbourhood in Addis Ababa, were among radio reported.
the victims, it was learnt, along with three
The rally earlier in the week came one
month before Ethiopia holds parliamentary
other victims from Cherkos.
Seyoum Yikunoamilak, elder brother of elections, the rst since the death of longEyasu, told FBC that Eyasu and Balcha left time leader Meles Zenawi, and current prime
their country for Sudan two months ago en minister Hailemariam Desalegn is expected
route to reach the United Kingdom for work to face little if any opposition challenge.
to help themselves and their families, but
We will redouble eorts to ght terrorism, Foreign ministry spokesman Tewolde
this was not meant to be.
I used to talk to them on phone while Mulugeta said in response to demands for
they were in the Sudan, Seyoum said in action from protesters.
Ethiopia is trying to create jobs so that
grief.
But I never heard from them since people do not fee l the need to leave to nd
they entered Libya one month
work, he added. Were trying
ago.
to create opportunities here for
Eyasu had previously been
our young people. We encourage
a migrant worker in Qatar
them to exploit those opportuniPevasive
ties at home.
and had covered his friends
epession
Nevertheless, disenchantexpenses with his savings to
and denial of
ment marked by asserted claims
reach Europe, said Seyoum.
of repression, inequality and unIn deance of the warning
fundamental
of the government spokesfeedoms has led employment has spurred a series
of protests against the regime
person, Meshesa Mitiku, a
long-time friend of Eyasu and to fustation and over the last few years.
Balcha living in Cherkos, told disillusionment...
These and other issues have
the Associated Press on April
prompted the exodus of EthioYARED HAILEMARIAM
pian migrants to Europe, ac20: I will try my luck too but
ETHIOPIAN RESEARCHER
not through Libya. Here there
cording to several observers.
is no chance to improve yourThe idea that the majority of
self. Mesheshas intentions came even af- Ethiopian migrants relocate due to ecoter learning about the fate of his friends. nomic reasons appears awed, contends
Ethiopian lawmakers declared a three-day Tom Rhodes, East Africa Representative
national mourning on April 21. The govern- of the Committee to Protect Journalists, in
ment also expressed its readiness to repatri- an email interview with IPS. Rhodes also

maintained that the violation of fundamental freedoms is closely tied with poverty and
economic inequality.
In an email interview with IPS, Yared
Hailemariam, a former senior researcher
for the Ethiopian Human Rights Council,
agreed. Pervasive repression and denial of
fundamental freedoms has led to frustration,
alienation and disillusionment among most
Ethiopian youth.
Citizens have the right to peacefully protest, said Felix Horne, East Africa researcher
with Human Rights Watch.
Its no surprise given the steps government takes to restrict peaceful protests that
disenfranchised youth would use the rare opportunity of an ocially sanctioned public
demonstration to express their frustrations.
Thats the inevitable outcome when there
are no other means for them to express their
opinions.
The main opposition parties say that the
government has failed to create job opportunities, making migration inevitable. The regime,
they charge, favours members of the ruling
Ethiopian Peoples Revolutionary Democratic
Front and creates economic inequality.
Recently dubbed an African tiger, Ethiopia is one of Africas most populous nations
with 94 million people (Nigeria has 173.6
million).
It has been celebrated for its modest economic growth over the last years. But the
average unemployment rate (the number of
people actively looking for a job as a percentage of the labour force) was stuck at 20.26
per cent from 1999 to 2014. The regime allocates state resources and job opportunities
to members of the ruling party who are organised in small-scale and micro enterprises,

Tuesday April 28, 2015 | BUSINESS DAILY

13

NEWS INDEPTH
a US-based non-governmental organisation
that spotlights land grabs, was recently denounced by Ethiopian ocials for its latest
report We Say the Land is Not Yours.
According to the government, the institute used unveried and unveriable
information.
In a reply to the Ethiopian Embassy in the
UK on April 22, the Oakland Institute challenged the governments claim that ongoing
development was improving life standards
in the country.
The institute maintained that the governments development endeavours are destroying the lives, culture, traditions, and livelihoods of many indigenous and pastoralist
populations, further warning that the strategy was unsustainable and creating a fertile
breeding ground for conict.

M I G R AT I O N

AFP

Tragic news

People (left) protest last week in Addis


Ababa over the killing of 28 Christian
migrants by Islamic State militants. Above:
Ethiopians mourn in Addis Ababa over
the killing of relatives and friends by the
militants. AFP
noted Horne. The CPJ representative agreed.
Ethiopian government authorities tend to
reward their political supporters and ethnic
relations with lucrative political and business
positions at the expense of ingenuity in the
business sector.
In its 2015 report, the World Bank shared
this discouraging view. Some 37 million Ethiopians one-third of the countrys population
are still either poor or vulnerable to falling
into poverty, the bank said, adding that the
very poorest in Ethiopia have become even
poorer over the last decade or so.
The UN Food and Agricultural Organisation (FAO) has estimated that about 29 per
cent of the population lives below the national poverty line. This explains Ethiopias
rank at 174 out of 187 countries on the UN
Development Programme (UNDP) Human
Development Index. The Oakland Institute,

More than half of Ethiopias farmers are cultivating plots so small as to barely provide
sustenance. These one hectare or less plots
are further aected by drought, an ineective and inecient agricultural marketing
system and underdeveloped production
technologies, says FAO.
Several studies indicate that this phenomenon has induced massive rural-urban
migration. According to Yared Hailemariam,
state ownership of land has contributed to
poverty and inequality.
People dont have full rights over their
properties, so they lack the motivation to
invest, he stressed. The ruling regime insists that land will remain in the hands of the
state, and selling and buying land is prohibited in Ethiopia.
Yared also pointed out that the ruling party
owns several huge businesses which has created unfair competition in the economy.
The partys huge conglomerates have
weakened other public and private businesses he told IPS. Only the ruling partys
political elite and their business cronies are
beneting at the expense of the majority of
the people.
The tragic news of the massacre in Libya came amid news of xenophobic attacks
against Ethiopian migrants in South Africa
last week including looting and burning of
properties. Unknown numbers of Ethiopian
economic migrants are also trapped in the
Yemeni conict, according to state media.
- IPS

Prime Minister Hailemariam Desalegn. Some 37 million Ethiopians are either poor or vulnerable
to falling into poverty. AFP

Illegal migrants rest after arriving at the Tunisian port city of Zarzis on Saturday. European leaders have
agreed, at a special crisis summit, to take a series of steps to tackle the migration headache. AFP

EU militay mission to tackle


smuggles faces ough seas
The Mediterraneans worst migrant shipwreck has spurred the
EU to plan a military mission
against people smugglers, but
it will be hard to implement and
risks reinforcing the image of an
uncaring Fortress Europe.
After more than 700 people
drowned in last weekends tragedy o the Libyan coast, European leaders agreed at a special
crisis summit to take a series of
steps to tackle the problem.
But while measures such
as tripling funding for search
and rescue missions is simple
enough, it is the plan to capture
and destroy the smugglers vessels before they can be used that
will cause future headaches.
If it goes ahead, it would be
the rst time the EU has carried
out such a military operation.
Rights groups have already
criticised the proposal, with the
Caritas organisation calling it
an unacceptable declaration of
war to migrants and refugees.
No matter how far beyond
the Mediterranean the EU expands Fortress Europe, it will
never stop people from risking
their lives to enter Europe if the
root causes of their situation are
not tackled, Caritas said in a
statement Friday.
But the real problem is how
such a mission would even work.
The questions are endless: how
to get European military assets
in place; whether they would
be just at sea or have boots on
the ground too; how to identify
which boats belong to smugglers; how to ensure there are
no migrants aboard. Over it all

THE FIGURES

700

Number of people
who drowned in recent
tragedy off the Libyan
coast.
EU leaders have
agreed on steps to
tackle the problem.

hangs the spectre of the NATO


air war that toppled Libyan
leader Moamer Kadha in 2011
which some in Europe blame
for the chaos and political vacuum that has led to the ood of
Mediterranean migrants.
The EUs diplomatic service
is due to present its blueprint
next week but it isnt simple...
there is a desire to make an
impact, but we have to do all
that in harmony, a European
source said.
Its not some little thing
where we go and shoot boats in
Libyan ports. Drones are one
method that has it been suggested the EU could use, but
experts were sceptical.
I dont believe in that at all,
European Parliament member
and defence specialist Arnaud
Danjean said. Youd come up
against legal and operational
hurdles very quickly. To identify one boat out of 200 in a
Libyan port as the one meant

to carry migrants requires good


intelligence, along with people
on the ground, not just drones,
he said.
The EUs naval Atalanta mission to disrupt Somali piracy o
the Horn of Africa is another
possible model. In May 2012,
commandos destroyed a pirate
base on the Somalian coast.
A blockade of Libyan ports
is another alternative.
But Europe must above all
nd a way of lling the legal
void that surrounds any such
action, said Danjean.
The EU wants an international mandate for any action
in Libyan territorial waters, and
Britain, Germany and France are
set to demand a UN Security
Council resolution.
EU diplomatic chief Federica
Mogherini will use a visit to New
York next week to meet key actors at the UN on the issue.
Russia, however -- mired in
a confrontation with Brussels
over Ukraine and an opponent
of the 2011 Libyan intervention
-- would almost certainly veto
any such resolution.
If Europe does go it alone,
military action is fraught with
risks. If trapped somewhere,
migrants will nd other corridors. It basically solves nothing,
a military source said.
Even more alarming for
European capitals, is the fact
that the Islamic State group
is active in Libya and would be
delighted to see the European
military come to them, they
would be easy targets, added
the source.

14

BUSINESS DAILY | Tuesday April 28, 2015

REGIONAL NEWS
AGRICULTURE Prices go up, forcing drinkers to pay more for the beverage at restaurants

JOHANNESBURG

Coee poduction
dips in Tanzania as
tempeatues ise
W

duction has dropped by 46 per cent


armer weather means that
Tanzania is producing less
in Tanzania a trend research precoee as higher temperadicts is likely to continue. Over that
tures aect yields, hurting both the
period, Tanzanias night-time average
nations producers and coee drinkers
temperature has risen by 1.4 degrees
who may pay more per cup, a South
Celsius.
According to the study, published
African university has found.
in the journal Agricultural and ForAccording to a study conducted
ests Meteorology, for each one-deby the University of Witwatersrand,
gree Celsius rise in mean minimum
researchers have established that
(night-time) temperature, farmers in
higher night-time temperatures are
Tanzania are likely to see
the main factor behind
a loss of approximately
a signicant decline in
137 kilogrammes of cofTanzanias Arabica cofCoee yields
fee yields.
fee per hectare. That is
Coee is Tanzanias
have declined to almost half the average
small producers produclargest export crop; on
thei lowest point tion, which is currently
average the country
in yeas, with
produces around 50,000
225 kilogrammes per
metric tonnes each year of
many fames in hectare.
which approximately 70
Negotiators at UN cliTanzania giving mate talks are working
per cent is Arabica. Sales
up
toward a global agreegenerate over $100 milALESSANDRO CRAPARO,
lion per year, according
ment to limit global
AUTHOR
to data from Tanzanias
warming to 2 degrees
Coee Board.
Celsius but the world
The East African nation produces
is currently on a path toward at least
less than one percent of the worlds
4 degrees Celsius of warming by the
Arabic coee, but the industry emturn of the century, scientists say.
Our forecast indicates that if the
ploys about 2.4 million people in
trend continues as has been observed
Tanzania and several millions in
during recent decades, then Arabica
neighbouring countries.
coee production in Tanzania will
Since 1966, however, coee pro-

SA says committed to Nigeria


ties despite envoys recall

A farmer picks coffee. Tanzania produces 50,000 metric tonnes every year. FILE

drop to 145 kg per hectare by the


year 2060, the University of Witwatersrand study said.
Researchers say the threat to Tanzanias coee production should spur
the countrys authorities to design
climate-smart practices that might
help cushion farmers from worsening losses.
The study, which looked at the impact of climate change on Tanzanias
Arabica coee production over the
past ve decades, warned that dwindling coee yields will aect incomes
and jobs not only in Tanzania but in
other coee producing countries such
as Kenya, Ethiopia, Brazil, Colombia
and Costa Rica, which could also see
temperature rises.
In Tanzania, Arabica coee is cultivated in the southern and northern
highlands along the slopes of Mount
Kilimanjaro and in the Mbeya region,
where the majority of small producers are based. Alessandro Craparo,
the studys author, told the Thomson

Reuters Foundation that if temperature increases follow the trend of the


past few decades, coee yields in Tanzanias highlands will likely to drop
to around 200 kg per hectare by the
year 2030.
Coee yields have declined to
their lowest point in years, with many
farmers in Tanzania giving up on coffee completely, Mr Craparo said.
Temperature changes are unlikely
to aect other coee species such as
Robusta, which is grown at lower altitude and is more climate-resilient
than Arabica, he said.
Godsteven Maro, a soil scientist
with the Tanzania Coee Research
Institute (TACRI), said falling coee
yields in Tanzania may also be related
to problems such as aging coee trees,
something the Witwatersrand study
acknowledges.
To attribute the trend solely to the
change in minimum temperature carries some subjectivity, he said.
-REUTERS

End of cuency black maket bings new challenges


Egypts currency black market, a
thorn in the side of successive governments, has virtually disappeared
in the past two months following a
central bank crackdown.
Yet, while the authorities hope this
will signal to foreign investors that
the economy has returned to normal
after four years of turmoil, Egyptian
businesses are suering.
Importers and exporters in particular say ocial measures to cap dollar deposits at Egyptian banks have
reduced foreign exchange liquidity
and stied business activitywithout achieving long-term stability in
the currency market.
The black market had ourished
as a slump in tourism and investment
since the overthrow of Hosni Mubarak in 2011 limited supply of hard
currency undermining an image of
relative price stability that authorities
have sought to portray for decades.

Black market ourished after Hosni


Mubarak was overthrown. AFP
After promising for months to eliminate the black market, the central
bank in February placed limits on
dollar-denominated bank deposits of
$10,000 a day and $50,000 a month,
soon after weakening the pound by
ve per cent over a few weeks.
The spread between the ocial
and black market rates, above 10 per
cent two years ago, sank to virtually
zero. Since then, the pound has been

BRIEFING

ocially trading between banks at


7.53 to the dollar.
Black market traders say volumes have fallen dramatically since
the cap on deposits was introduced,
with those who exchanged dollars
outside ocial channels deprived
of a place to keep their funds. (The)
measures massacred the currency exchange companies, the manager of a
Cairo exchange bureau said. There
is no demand (for dollars).
The International Monetary Fund
welcomed the central banks measures as a step that will make Egypt
more attractive to foreign investors.
But many local businesses are struggling to cope.
Mohamed Abu Basha, economist
at EFG Hermes, said the deposit cap
has made it harder for businesses to
open letters of credit.
Demand for dollars from banks
has outpaced supply, which business-

es say is squeezing the market.


Since companies cannot really
access the parallel market at large,
your place on the central banks priority list becomes really important,
said Abu Basha.
The central bank, which declined
to comment, emphasises strategic
needs such as food and energy in
weekly dollar auctions. Hard currency for other products is lower
priority, which businessmen complain has hurt commercial enterprises, especially those that import
costly goods like cars and electronics goods.
Medhat Khalil, chief executive of
Raya Holding which imports computers and telecommunications equipment, said the central banks failure
to supply currency to importers like
him has slowed down business.
-REUTERS

South Africa remains committed to maintaining friendly relations with Nigeria after Abuja
recalled its ambassador to Pretoria in the
wake of attacks on immigrants, the department of international relations has said.
Acting High Commissioner Martin Cobham
and Deputy High Commissioner Uche AjuluOkeke were asked to return to Nigeria for consultations in the latest sign of African countries discontent over South Africas handling
of attacks on foreigners. At least seven people
have been killed over the last month in a wave
of anti-immigrant violence centred on areas
of Durban and Johannesburg.

LONDON
Atlas Mara to spend Sh2bn
in major Rwanda bank
Atlas Mara, the African bank co-founded
by former Barclays boss Bob Diamond, is in
talks to invest $22.5 million (Sh2.1 billion)
in Banque Populaire du Rwanda (BPR) and
merge it with its existing Rwandan bank.
Atlas Mara said if successfully concluded it
will own 45 per cent of BPR and plans to buy
shares from other local shareholders to lift
its stake to more than 70 per cent. It plans to
merge it with BRD Commercial Bank, which it
bought last year.
The merger would create Rwandas largest
bank by branch locations and second largest
bank by assets with combined assets of approximately $305 million, Atlas Mara said.

CAPE TOWN
Vandals in South Africa
steal colonial monument
Vandals in South Africa have stolen a monument to Saartjie Baartman, Africas Hottentot Venus who was paraded in 19th century
Europe like a circus freak, police.
The incident in Hankey, in rural Eastern Cape
province, is the latest in a spate of assaults
on monuments that had, until now, chiey
targeted colonial symbols. The plaque was
vandalised with white paint, police spokeswoman Gerda Swart said, adding that a resident who witnessed a group of people lobbing paint at the memorial had reported the
incident. An investigation had been launched,
Mr Swart said.

BUJUMBURA
Protests over presidents
plan to run enters second
Protesters took to the streets in Burundi for
a second day after activists said at least ve
people were killed in unrest a day earlier triggered by the presidents plan to run for a third
term, a move critics say violates the constitution. The ght continues, protesters
chanted in the Musaga district of the capital
Bujumbura. A Reuters witness saw about
200 people demonstrating and tyres being
burned. Protesters say President Pierre Nkurunziza broke the constitution and the Arusha
peace agreement, which limits the president
to two ve-year terms, by saying on Saturday
he would run again in the June 26 vote.

Tuesday April 28, 2015 | BUSINESS DAILY

15

TUESDAY APRIL 28, 2015

p.16

STRATEGY
The 10,000-hour mastery rule
of successful businesses

p.17

VENTURE
Rewards of doing business
off the beaten track

Naivas foundes
son looks to gow
his own etail chain

with the view of having an out- ofcourt settlement to avoid public


embarrassment to the family.
Yes talks have taken place, but I was
not satised with the directions they
were taking and I decided that since
the matter is in the public domain, let
the law take its course and give the way
forward, said Mr Kagira.
He said through out his personal
and business dealings, he has learnt
not to trust people easily.
I dont trust people easily after
many years of betrayal. I even dropped
hiring lawyers to represent me in court.
I decided that there is no need of briefing someone on a matter that I understand better, said Mr Kagira.

PLAN Despite being caught up in family feud,


Kagira says he has big dreams for Greenmart
BY SIMON CIURI

ewton Kagira Mukuha is not


one to shy away from a good
ght.
And, he says he is not about to give
up his ght with his siblings for a stake
in Naivas Supermarket.
Conicts in the successful retail
chain rst emerged when Mr Kagira
sued his kin claiming he had not been
given his rightful inheritance.
In the course of the family feud, the
65-year-olds image and personality
have often taken a beating .
So even before we sat down for an
interview after 12 failed attempts, he
was keen to set the record straight.
Dont think you will be meeting a
broke drunkard who has squandered
all his money and investments on alcohol, Mr Kagira said on the phone
before the interview.
I am a family man who operates a
business that generates money for me. I

am neither poor nor rich, but I am not


struggling either, he said when we nally met for the interview at a small
hotel on Accra Road, Nairobi.
I want to expand Greenmart Supermarket. Its small at the moment,
but it has the potential to grow just
like Naivas.
The supermarket located in Nairobis Kayole estate has 25 employees
and is the subject of an auction suit
that nearly saw family members sell it
to recover a Sh12.1 million debt said to
have been advanced by Mr Kagiras late
mother to prop up his business.
He has obtained Court of Appeal
order blocking the auction,
But even as the case goes on, the
two-year family feud has already cost
Naivas a lucrative 51 per cent sale deal
to South African retail giant Massmart after Mr Kagira obtained a court
order blocking the transaction.
Massmart now looks set to enter the
Kenyan market alone after it booked

Sacks of maize

Newton Kagira Mukuha, the owner of Greenmart supermarket and one of Naivas Supermarket founders sons. MARTIN MUKANGU
a space at the upcoming Garden City
Mall on Thika Road, Nairobi.
Mr Kagira said he is not bothered by
the lost opportunity pointing out that
his idea is to establish his own outt
and exit from the family business.

And he reckoned that Sh250 million, viewed against the accumulated


wealth since Naivas started operating
25 years ago is a fair compensation.
Mr Kagira said that family
members have approached him

Mr Kagira said Naivas was started


from scratch by the family and that he
had to sell 20 sacks of maize to raise
Sh20,000 to secure a stake in the supermarket in the early 1990s.
The Naivas family includes Simon
Gashwe (the Naivas chairman), David
Kimani, Peter Kago, Grace Wamboi and
Linet Wairimu.
Mr Kagira has sued Mr Gachwe
and Mr Kimani accusing them of taking over Naivas and leaving him in
the cold.
He said the inghting started after
their father died in 2010 and Mr Gachwe allegedly nominated himself as the
administrator of his fathers wealth.
Mr Kagira lives in Nairobis Komarock Estate with his wife and maintains that his motivation comes from
the Bible.
Sciuri@ke.nationmedia.com

Seven cool jobs you pobably neve thought about

hen it comes to low paying


drudgery with a dismal future, newspaper reporter
and lumberjack have been called the
worst. On the other hand, some jobs
seem more like play. Just for a lark,
the folks at London-based shopping
site Savoo scoured postings on US job
boards, help-wanted ads in American
media, and other sources state side to
nd the occupations that sound like
the most fun. They came up with this
ranking,

1. Disneyland face character


Sh3.02 million
Job description: Dress up and perform as a famous Disney character
Requirements: Strict rules regarding height and appearance, plus some
acting ability. Must be good with children.
2. Video game player Sh4.7 million, plus newest game releases
Job description: Assist other players to achieve higher scoring levels
in games.

Requirements: Love for video


games, plus some teaching ability.
3. Ice cream taster -Sh5.6 million,
plus unlimited ice cream
Job description: Evaluate ice cream
in terms of taste, texture, smell, and
other elements to assure quality
control.
Requirements: Bachelors degree
in food science preferred.
4. Blimp pilot Sh6.6 million
Job description: Fly around in a
blimp to make advertisements visible

from below. Requirements: Must have


blimp pilot certication.
5. Crossword puzzle writer Sh6.6
million
Job description: Create crossword
puzzles, of varying degrees of diculty,
for newspaper syndicates and other
media outlets.
Requirements: Ability to work
on deadline, and a wide-ranging
vocabulary.
6. Food stylist Sh7.2 million
Job description: Prepare and ar-

range food for ads and other photo


and video shoots.
Requirements: A passion for food,
with a creative eye. Training and experience in the eld preferred.
7. Voiceover artist Sh7.5 million
Job description: Speak in commercials, as well as in lm and TV
Requirements: A pleasant voice.
No special training, but experience
preferred.
-ENTREPRENEUR.COM

16

BUSINESS DAILY | Tuesday April 28, 2015

Tuesday April 28, 2015 | BUSINESS DAILY

Entepise

PEOPLE | IDEAS | NEWS

Entepise

PEOPLE | IDEAS | NEWS

Rewads of doing business o the beaten tack

QUOTES

Reasons that beed ange and


esentment at the wokplace
structively:

VENTURE

Brave and adventurous


entrepreneurs thrive in
the middle of nowhere
Most business failure stems from expecting too much within a short time . FILE

The 10,000-hou mastey ule


of unning a successful business
Gladwell examines the factors that contribute to
high levels of success in all areas of life. Using
numerous examples of highly successful people like Bill Gates, he comes with what he calls a
10,000-hour rule.
The 10,000-hour rule simply states that one
needs at least 10,000 hours to gain mastery in any
BY MURORI KIUNGA
eld. This resonates very well with another study
conducted by John Hayes, a cognitive psychology
ast weekend, I did something I had never professor at Carnegie Mellon University.
done before. For the rst time in my career I
Professor Hayes investigated the role of eort,
played the role of a marriage counsellor.
practice, and knowledge in top performers. He
A business friend called and told me that he based his study on thousands of musical pieces
had a serious domestic issue which threatened produced between the years of 1685 to 1900, with
core objective of establishing how long after one
to tear apart his marriage.
It involved money and business. At rst I was becomes interested in music it takes to become
relieved that it had nothing to do with indelity world class.
and physical abuse. But then I remembered readHe concentrated on 500 pieces popular coning somewhere that statistics show that about ceded to be the masterpieces, frequently played
80 per cent of all divorces are caused by issues to the world and studied 76 composers who created them.
related to money.
Quite remarkably, he established
This implies that all problems
Not a single
that almost all the masterpieces were
that pastors and counsellors say
peson poduced
written after 10 years of the composcould spell doom to marriages such
incedible wok
ers career. Out of 500 there were only
as indelity, alcohol abuse and so on
without putting
three exceptions, which were written
are responsible for only 20 per cent
in a decade of
in years eight and nine.
of break-ups.
pactice st
This means that spouses are more
The discovery that not a single perat home handling the for better, for
son produced incredible work without
worse, in sickness and in health part
putting in a decade of practice rst,
of the vow than handling for richer,
not even genius like Mozart, is quite
remarkable breakthrough in the study
for poor part of it.
In brief, my friend has been in business for the of personal development. Prof Hayes called this
last six years, but according to his wife, the busi- period, 10 years of silence. It is a tough period
ness does not seem to be heading anywhere near which is manifested by hard work, hardly any
paradise as she was promised when they began gain and little recognition.
it. The wife who has a good and stable job feels
Both 10,000-hour rule and 10 years of silence
that she has sacriced enough for the family and guratively underscore the element of time in
business, and she was not ready to put a cent more, success. It may take less or more for any business
or be part of it. She was bitter for supporting the or person to achieve mastery that can be apprebusiness and shouldering almost all family re- ciated by others.
Most business failure and stress springs from
sponsibilities with her salary. She went short of
blaming her husband for being a non-performer. expecting too much within a short time. This may
She felt they could be better of economically with- be a serious issue especially in a set up where parout the business.
ties who are not involved in the day-to-day runThe man on the other side maintained that the ning such as spouses, nancing partners have
business is on course and requires a little bit of high hopes on quick returns.
time and funding to cross the valley and reach Ca- Mr Kiunga is a business trainer and the author
naan, something that annoyed the wife more.
of The Entrepreneurial Journey: From EmployI drew my lessons from the Outliers: The Sto- ment to Business
ry of Success by Malcolm Gladwell. In this book E-mail: Murorikiunga@yahoo.com.

The greatest
solution of all is
to live and work
in partnership
with yourself,
your family and
friends, your work
and community,
your nation, your
world, nature, and
spirit.

efore Gichuchu Okeno spends


the night at his remote gemstone
mine, he always asks one of his
men to check his bedroom for scorpions
and snakes.
The deadly creatures are a daily concern
for the 48-year-old, much more so than the
wild elephants and bualo that roam his
property in the middle of the Kenyan bush
and more of a worry than the risk of a lion
wandering in from the nearby Tsavo East
National Park, which isnt fenced o.
This is an isolated and harsh spot in
southern Kenya. The nearest town Voi is
a three-hour drive away along packed dirt
tracks strewn with rocks and potholes.
It can be blazing hot, and you have to
truck in everything you need water, food,
fuel and electricity generators. Your mobile
phone will denitely not get a signal.
Mr Okeno says that he and his workers
could do with more heavy machinery
But what Mr Okenos land does have,
under its red soil, is a gemstone called tsavorite garnet.
A brilliant green colour similar to emerald, it is much in demand on the global jewellery market, particularly in Asia.
The houses at the mine often come with
added snakes and scorpions
And while tsavorites may not be as expensive as emeralds, their wholesale price
is still about $1,200 per gramme (800). So
for Mr Okeno, it can be a lucrative business
when times are good.
However, doing business o the beaten track inevitably comes with complications and diculties, wherever you are on
the globe.
We spoke to Mr Okeno and two very different, but equally remotely-based, small
rms in other parts of the world about the
challenges they have to endure while running their successful businesses.

MARC ALLEN,
AUTHOR AND PRESIDENT AND
PUBLISHER OF NEW WORLD
LIBRARY,
Man Eaters area near Voi town. This is an isolated and harsh terrain where an enterprising Kenyan, Gichuchu Okeno, mines a gemstone called
tsavorite garnet. FILE
Mr Okenos mine is little more than a
big hole in the ground, where he and his six
employees toil with one jackhammer and
some shovels and axes. He admits that it is
a laborious process.
What we lack is an excavator (digger),
says Mr Okeno, who has built two simple,
small buildings with corrugated iron roofs
to house him and his workers when they
are on site.I know we are on the right track,
but without the right equipment everything
takes so much longer.
Yet getting the tsavorites out of the
ground is not Mr Okenos biggest challenge,
instead it is selling them for a good price.
He uses Facebook to promote his gemstones around the world
There is no way we can get high prices
locally, he says, complaining that dealers
from China and Thailand base themselves
in Kenya to buy up the local supply and sell
it for twice as much in Asia.
Mr Okeno, who set up the mine a few
years ago, after previously working as a safari tour operator, instead tries to sell his
stones directly to overseas buyers.
To promote himself, and nd new customers, he maintains a Facebook page,

which he updates when he visits his ofce in Voi.


A world away in Canadas far north, hotelier Leo Martel also knows a thing or two
about long-distance driving.
His hotel is based in a tiny former mining
community called Keno City (population,
15), in the countrys Yukon territory.
Leo Martels hotel is a very long way away
from a signicant population centre
At the end of a road known as the Silver
Trail, it is a seven-hour car journey north
from Whitehorse, the Yukons capital.
Its not a casual drive, says Mr Martel,
64, a retired carpenter from Quebec who
fell in love with Keno City when he worked
in a nearby mine, and decided to make it
his home. He bought the hotel eight years
ago, and it is now open all year round. Every
couple of months he has to travel down to
Whitehorse to stock up on everything the
Keno City Hotel needs, such as huge quantities of fresh meat and produce for the freezer,
canned food, and lots and lots of alcohol.
If the isolated location of the 10-room
hotel was not enough of a commercial
challenge for Mr Martel, you have to also
remember that the Yukon gets brutally cold

winters. With mountains, lakes and forests


it is a visually stunning part of the world,
but winter temperatures can plummet to
-30C or below for weeks on end.
However, Mr Martel says that for many
visitors the hotels very isolation is all part
of the attraction.
While the Keno City Hotel doesnt have
an easy time buying its alcohol, 8,374 miles
(13,477km) away in the South Atlantic the
worlds most isolated distillery faces a challenge in trying to sell its products.
The St Helena Distillery is based on
the British Overseas Territory of the same
name, a small island measuring just 47 sq
miles (121 sq km).
The facility was opened in 2006 by Welshman Paul Hickling after he and his St Helena-born wife moved to the island from the
UK. The 57-year-old makes a range of products, including a gin, brandy, coee liqueur,
and a spirit made from St Helena grown
prickly pears, the fruit of a cactus plant.
Mr Hicklings products are a hit with the
4,500 people who live on St Helena, but hed
like to increase exports.
-BBC

I can honestly say


that I have never
gone into any
business purely
to make money.
If that is the sole
motive then I
believe you are
better o not doing
it. A business has
to be involving, it
has to be fun, and
it has to exercise
your creative
instincts.
RICHARD BRANSON
ENGLISH BUSINESSMAN AND
INVESTOR

Milk pocessos bet on taining fames to cub shotage


BY GERALD ANDAE

Grappling with perennial milk shortage,


processors are now betting on training farmers to boost production and turn the dairy
sector into a protable enterprise.
New KCC, a milk processor, has sponsored 90 producers for a one-week tour to
Israel, a country that has transformed its
dairy sector despite its desert climate.
Many dairy keepers in Kenya are subsistent farmers despite having the ability to produce more milk for commercial

17

purposes. The farmers on tour will learn


how the Israeli dairy industry uses modern
techniques to reach production of 12,000
kilogrammes per cow throughout the year,
against an average of 2,500 kg that farmers
in Kenya get.
The New KCC managing director Nixon
Sigey said most dairy farmers rely on pasture from elds to feed their cows which is
in low supply during dry spells.
We are now focusing on training to
improve productivity and ensure farmers
understand that dairy farming is a serious

commercial entity and not a pastime business, said Mr Sigey. He said the farmers will
get an opportunity to learn and emulate feed
preservation techniques used in Israel. They
will also learn modern, technological and
ecient ways of dairy farming.
The tour was organised by the New KCC
extension wing, Platinum Ultra Events Limited and Israel Dairy School.
Processors are betting on training farmers to boost dairy supply of milk which has
impacted negatively on production of powder milk with some forced to shelve expan-

sion plans to Middle East markets. Some


processors are now re-constituting stocks
of powder to liquid milk.
Consumption of processed milk rose
to a three-year high of 541.1 million litres
last year, having peaked at 549 million litres in 2011.
Ocial statistics show that packaged
milk consumption rises and falls in step with
the performance of the broader economy.
A majority of Kenyans, however, still buy
raw milk from farmers or middle men who
hawk it at much lower prices.

. I dont know the


key to success, but
the key to failure
is trying to please
everybody.
- BILL COSBY
US ACTOR

BY SRIRAM BHARATAM

Holding on to anger is like grasping a hot coal with the intent of


throwing it at someone else; you are
the one who gets burned.
- Buddha

o you remember the last time you


got angry with your colleague or
your boss, or generally with your
workplace? And why? May be you did not
get the promotion you expected! May be
your colleague got the recognition while
you slogged all night to prepare the report
or even worse your boss is never happy, no
matter how hard you work.
Lets quickly see the top ve reasons
for employee disappointment and anger
at work (excluding client and personal
pressures)
Employer not meeting the employees
expectation during appraisal a raise, a
change in designation, or promotion.
Employee not given free hand to take decision related to his or her role/ project
Constant pressure of work and high expectation from the employer,
Frequent changes in the project work/
schedules or in the role.
Better pay to another employee for the
same work.
It is but natural for an employee to feel
hurt, angry, discouraged when facing such
situations. And while you feel the anger,
you may never even realise that your anger, anxiety or expression can seriously
impact your colleagues, your workplace
and the whole organisation. Anger never
solves anything, it builds nothing, but it
can destroy everything.
Anger is one of the many emotions we
feel and is nothing to feel bad about. Feeling the emotion is not wrong. Letting it get
toxic is wrong. It is very important for each
of us to reect upon such emotion and see
if the emotion is causing harm to you, your
colleagues and your career. Please get it
right, it doesnt mean that you can never
get angry. Anger is a part and parcel of life.
You cannot do anything to avoid it and you
should not curb it. You should also not let
it control you to an extent that you act out
and worsen situations.
Find the reason behind your anger,
which is unclear at times and nd a solution to it. This is even more so at the
workplace, be it with your boss or your colleagues or your employer. In other words,
you should use your anger towards solving
an issue instead of making it worse. You
will not be punished for your anger, but
you will be punished by your anger
Compiled below are a few tips that
will help you deal with your anger con-

1.Embrace the feeling of anger


Dicult as this may sound, you must learn
to embrace anger. The notion that anger is
poison is true but curbing it, keeping it to
yourself, and trying to stu it inside is even
more dangerous. Keeping your anger to
yourself can mentally destroy you. But you
shouldnt be vengeful either. You should
learn to accept that fact that everyone gets
angry and that you can channel the anger
to achieve the required results instead of
letting it get the better of you.
2. Learn about the types and reasons
Anger may be of dierent types in different forms. Some people are explosive
when they get angry. They burst out on
the spot and say or do things that they
eventually regret. Some others try to curb
it in and avoid talking about it. There are
also people who use sarcasm, irritation,
and passive aggression to channel their
anger. All these methodologies are selfdestructive.
3. Dealing with your own self during anger
It is important to recognise the feelings
that may lead to anger. When you end
up in an argument at the workplace, rst
try not taking the interaction personally,
secondly do not get into a battle of egos,
and lastly avoid competing with your
own anger.
Here are some tips to manage your anger
in the right way:
1.Explosive anger: The best way to deal
with this type of anger is to wait. When
you are angry, you will not be able to feel
anything else. You will only see the mistake
or the problem and in this state, you will
make the worst decisions. Take some time
to calm down and get back to the situation
with a calmer mind.
2. Curbing it in: Avoiding a situation will
not give you any solutions. You should take
it head-on but gently. You should believe
that you could only better after solving
the problem. If someone hurt you or if a
colleague made a mistake, you should confront that person in a positive manner.
3.Sarcasm: Stop hiding your anger
behind sarcasm. Start saying things
straight. This will keep you from getting
bitter and using comments that can damage feelings.
4.Irritation: People who are constantly
irritated dont usually know the reason
behind their anger. Identify the cause and
youll know why even a dirty sock makes
you fume.
Mr Sriram is the Founder & Chief Mentor of Kuza Biashara Limited, a capacity
building organization coaching youth &
SME owners in Kenya. He also chairs Entrepreneurs Organisation for Africa.
E-mail: sri@kuzabiashara.co.ke

16

BUSINESS DAILY | Tuesday April 28, 2015

Tuesday April 28, 2015 | BUSINESS DAILY

Entepise

PEOPLE | IDEAS | NEWS

Entepise

PEOPLE | IDEAS | NEWS

Rewads of doing business o the beaten tack

QUOTES

Reasons that beed ange and


esentment at the wokplace
structively:

VENTURE

Brave and adventurous


entrepreneurs thrive in
the middle of nowhere
Most business failure stems from expecting too much within a short time . FILE

The 10,000-hou mastey ule


of unning a successful business
Gladwell examines the factors that contribute to
high levels of success in all areas of life. Using
numerous examples of highly successful people like Bill Gates, he comes with what he calls a
10,000-hour rule.
The 10,000-hour rule simply states that one
needs at least 10,000 hours to gain mastery in any
BY MURORI KIUNGA
eld. This resonates very well with another study
conducted by John Hayes, a cognitive psychology
ast weekend, I did something I had never professor at Carnegie Mellon University.
done before. For the rst time in my career I
Professor Hayes investigated the role of eort,
played the role of a marriage counsellor.
practice, and knowledge in top performers. He
A business friend called and told me that he based his study on thousands of musical pieces
had a serious domestic issue which threatened produced between the years of 1685 to 1900, with
core objective of establishing how long after one
to tear apart his marriage.
It involved money and business. At rst I was becomes interested in music it takes to become
relieved that it had nothing to do with indelity world class.
and physical abuse. But then I remembered readHe concentrated on 500 pieces popular coning somewhere that statistics show that about ceded to be the masterpieces, frequently played
80 per cent of all divorces are caused by issues to the world and studied 76 composers who created them.
related to money.
Quite remarkably, he established
This implies that all problems
Not a single
that almost all the masterpieces were
that pastors and counsellors say
peson poduced
written after 10 years of the composcould spell doom to marriages such
incedible wok
ers career. Out of 500 there were only
as indelity, alcohol abuse and so on
without putting
three exceptions, which were written
are responsible for only 20 per cent
in a decade of
in years eight and nine.
of break-ups.
pactice st
This means that spouses are more
The discovery that not a single perat home handling the for better, for
son produced incredible work without
worse, in sickness and in health part
putting in a decade of practice rst,
of the vow than handling for richer,
not even genius like Mozart, is quite
remarkable breakthrough in the study
for poor part of it.
In brief, my friend has been in business for the of personal development. Prof Hayes called this
last six years, but according to his wife, the busi- period, 10 years of silence. It is a tough period
ness does not seem to be heading anywhere near which is manifested by hard work, hardly any
paradise as she was promised when they began gain and little recognition.
it. The wife who has a good and stable job feels
Both 10,000-hour rule and 10 years of silence
that she has sacriced enough for the family and guratively underscore the element of time in
business, and she was not ready to put a cent more, success. It may take less or more for any business
or be part of it. She was bitter for supporting the or person to achieve mastery that can be apprebusiness and shouldering almost all family re- ciated by others.
Most business failure and stress springs from
sponsibilities with her salary. She went short of
blaming her husband for being a non-performer. expecting too much within a short time. This may
She felt they could be better of economically with- be a serious issue especially in a set up where parout the business.
ties who are not involved in the day-to-day runThe man on the other side maintained that the ning such as spouses, nancing partners have
business is on course and requires a little bit of high hopes on quick returns.
time and funding to cross the valley and reach Ca- Mr Kiunga is a business trainer and the author
naan, something that annoyed the wife more.
of The Entrepreneurial Journey: From EmployI drew my lessons from the Outliers: The Sto- ment to Business
ry of Success by Malcolm Gladwell. In this book E-mail: Murorikiunga@yahoo.com.

The greatest
solution of all is
to live and work
in partnership
with yourself,
your family and
friends, your work
and community,
your nation, your
world, nature, and
spirit.

efore Gichuchu Okeno spends


the night at his remote gemstone
mine, he always asks one of his
men to check his bedroom for scorpions
and snakes.
The deadly creatures are a daily concern
for the 48-year-old, much more so than the
wild elephants and bualo that roam his
property in the middle of the Kenyan bush
and more of a worry than the risk of a lion
wandering in from the nearby Tsavo East
National Park, which isnt fenced o.
This is an isolated and harsh spot in
southern Kenya. The nearest town Voi is
a three-hour drive away along packed dirt
tracks strewn with rocks and potholes.
It can be blazing hot, and you have to
truck in everything you need water, food,
fuel and electricity generators. Your mobile
phone will denitely not get a signal.
Mr Okeno says that he and his workers
could do with more heavy machinery
But what Mr Okenos land does have,
under its red soil, is a gemstone called tsavorite garnet.
A brilliant green colour similar to emerald, it is much in demand on the global jewellery market, particularly in Asia.
The houses at the mine often come with
added snakes and scorpions
And while tsavorites may not be as expensive as emeralds, their wholesale price
is still about $1,200 per gramme (800). So
for Mr Okeno, it can be a lucrative business
when times are good.
However, doing business o the beaten track inevitably comes with complications and diculties, wherever you are on
the globe.
We spoke to Mr Okeno and two very different, but equally remotely-based, small
rms in other parts of the world about the
challenges they have to endure while running their successful businesses.

MARC ALLEN,
AUTHOR AND PRESIDENT AND
PUBLISHER OF NEW WORLD
LIBRARY,
Man Eaters area near Voi town. This is an isolated and harsh terrain where an enterprising Kenyan, Gichuchu Okeno, mines a gemstone called
tsavorite garnet. FILE
Mr Okenos mine is little more than a
big hole in the ground, where he and his six
employees toil with one jackhammer and
some shovels and axes. He admits that it is
a laborious process.
What we lack is an excavator (digger),
says Mr Okeno, who has built two simple,
small buildings with corrugated iron roofs
to house him and his workers when they
are on site.I know we are on the right track,
but without the right equipment everything
takes so much longer.
Yet getting the tsavorites out of the
ground is not Mr Okenos biggest challenge,
instead it is selling them for a good price.
He uses Facebook to promote his gemstones around the world
There is no way we can get high prices
locally, he says, complaining that dealers
from China and Thailand base themselves
in Kenya to buy up the local supply and sell
it for twice as much in Asia.
Mr Okeno, who set up the mine a few
years ago, after previously working as a safari tour operator, instead tries to sell his
stones directly to overseas buyers.
To promote himself, and nd new customers, he maintains a Facebook page,

which he updates when he visits his ofce in Voi.


A world away in Canadas far north, hotelier Leo Martel also knows a thing or two
about long-distance driving.
His hotel is based in a tiny former mining
community called Keno City (population,
15), in the countrys Yukon territory.
Leo Martels hotel is a very long way away
from a signicant population centre
At the end of a road known as the Silver
Trail, it is a seven-hour car journey north
from Whitehorse, the Yukons capital.
Its not a casual drive, says Mr Martel,
64, a retired carpenter from Quebec who
fell in love with Keno City when he worked
in a nearby mine, and decided to make it
his home. He bought the hotel eight years
ago, and it is now open all year round. Every
couple of months he has to travel down to
Whitehorse to stock up on everything the
Keno City Hotel needs, such as huge quantities of fresh meat and produce for the freezer,
canned food, and lots and lots of alcohol.
If the isolated location of the 10-room
hotel was not enough of a commercial
challenge for Mr Martel, you have to also
remember that the Yukon gets brutally cold

winters. With mountains, lakes and forests


it is a visually stunning part of the world,
but winter temperatures can plummet to
-30C or below for weeks on end.
However, Mr Martel says that for many
visitors the hotels very isolation is all part
of the attraction.
While the Keno City Hotel doesnt have
an easy time buying its alcohol, 8,374 miles
(13,477km) away in the South Atlantic the
worlds most isolated distillery faces a challenge in trying to sell its products.
The St Helena Distillery is based on
the British Overseas Territory of the same
name, a small island measuring just 47 sq
miles (121 sq km).
The facility was opened in 2006 by Welshman Paul Hickling after he and his St Helena-born wife moved to the island from the
UK. The 57-year-old makes a range of products, including a gin, brandy, coee liqueur,
and a spirit made from St Helena grown
prickly pears, the fruit of a cactus plant.
Mr Hicklings products are a hit with the
4,500 people who live on St Helena, but hed
like to increase exports.
-BBC

I can honestly say


that I have never
gone into any
business purely
to make money.
If that is the sole
motive then I
believe you are
better o not doing
it. A business has
to be involving, it
has to be fun, and
it has to exercise
your creative
instincts.
RICHARD BRANSON
ENGLISH BUSINESSMAN AND
INVESTOR

Milk pocessos bet on taining fames to cub shotage


BY GERALD ANDAE

Grappling with perennial milk shortage,


processors are now betting on training farmers to boost production and turn the dairy
sector into a protable enterprise.
New KCC, a milk processor, has sponsored 90 producers for a one-week tour to
Israel, a country that has transformed its
dairy sector despite its desert climate.
Many dairy keepers in Kenya are subsistent farmers despite having the ability to produce more milk for commercial

17

purposes. The farmers on tour will learn


how the Israeli dairy industry uses modern
techniques to reach production of 12,000
kilogrammes per cow throughout the year,
against an average of 2,500 kg that farmers
in Kenya get.
The New KCC managing director Nixon
Sigey said most dairy farmers rely on pasture from elds to feed their cows which is
in low supply during dry spells.
We are now focusing on training to
improve productivity and ensure farmers
understand that dairy farming is a serious

commercial entity and not a pastime business, said Mr Sigey. He said the farmers will
get an opportunity to learn and emulate feed
preservation techniques used in Israel. They
will also learn modern, technological and
ecient ways of dairy farming.
The tour was organised by the New KCC
extension wing, Platinum Ultra Events Limited and Israel Dairy School.
Processors are betting on training farmers to boost dairy supply of milk which has
impacted negatively on production of powder milk with some forced to shelve expan-

sion plans to Middle East markets. Some


processors are now re-constituting stocks
of powder to liquid milk.
Consumption of processed milk rose
to a three-year high of 541.1 million litres
last year, having peaked at 549 million litres in 2011.
Ocial statistics show that packaged
milk consumption rises and falls in step with
the performance of the broader economy.
A majority of Kenyans, however, still buy
raw milk from farmers or middle men who
hawk it at much lower prices.

. I dont know the


key to success, but
the key to failure
is trying to please
everybody.
- BILL COSBY
US ACTOR

BY SRIRAM BHARATAM

Holding on to anger is like grasping a hot coal with the intent of


throwing it at someone else; you are
the one who gets burned.
- Buddha

o you remember the last time you


got angry with your colleague or
your boss, or generally with your
workplace? And why? May be you did not
get the promotion you expected! May be
your colleague got the recognition while
you slogged all night to prepare the report
or even worse your boss is never happy, no
matter how hard you work.
Lets quickly see the top ve reasons
for employee disappointment and anger
at work (excluding client and personal
pressures)
Employer not meeting the employees
expectation during appraisal a raise, a
change in designation, or promotion.
Employee not given free hand to take decision related to his or her role/ project
Constant pressure of work and high expectation from the employer,
Frequent changes in the project work/
schedules or in the role.
Better pay to another employee for the
same work.
It is but natural for an employee to feel
hurt, angry, discouraged when facing such
situations. And while you feel the anger,
you may never even realise that your anger, anxiety or expression can seriously
impact your colleagues, your workplace
and the whole organisation. Anger never
solves anything, it builds nothing, but it
can destroy everything.
Anger is one of the many emotions we
feel and is nothing to feel bad about. Feeling the emotion is not wrong. Letting it get
toxic is wrong. It is very important for each
of us to reect upon such emotion and see
if the emotion is causing harm to you, your
colleagues and your career. Please get it
right, it doesnt mean that you can never
get angry. Anger is a part and parcel of life.
You cannot do anything to avoid it and you
should not curb it. You should also not let
it control you to an extent that you act out
and worsen situations.
Find the reason behind your anger,
which is unclear at times and nd a solution to it. This is even more so at the
workplace, be it with your boss or your colleagues or your employer. In other words,
you should use your anger towards solving
an issue instead of making it worse. You
will not be punished for your anger, but
you will be punished by your anger
Compiled below are a few tips that
will help you deal with your anger con-

1.Embrace the feeling of anger


Dicult as this may sound, you must learn
to embrace anger. The notion that anger is
poison is true but curbing it, keeping it to
yourself, and trying to stu it inside is even
more dangerous. Keeping your anger to
yourself can mentally destroy you. But you
shouldnt be vengeful either. You should
learn to accept that fact that everyone gets
angry and that you can channel the anger
to achieve the required results instead of
letting it get the better of you.
2. Learn about the types and reasons
Anger may be of dierent types in different forms. Some people are explosive
when they get angry. They burst out on
the spot and say or do things that they
eventually regret. Some others try to curb
it in and avoid talking about it. There are
also people who use sarcasm, irritation,
and passive aggression to channel their
anger. All these methodologies are selfdestructive.
3. Dealing with your own self during anger
It is important to recognise the feelings
that may lead to anger. When you end
up in an argument at the workplace, rst
try not taking the interaction personally,
secondly do not get into a battle of egos,
and lastly avoid competing with your
own anger.
Here are some tips to manage your anger
in the right way:
1.Explosive anger: The best way to deal
with this type of anger is to wait. When
you are angry, you will not be able to feel
anything else. You will only see the mistake
or the problem and in this state, you will
make the worst decisions. Take some time
to calm down and get back to the situation
with a calmer mind.
2. Curbing it in: Avoiding a situation will
not give you any solutions. You should take
it head-on but gently. You should believe
that you could only better after solving
the problem. If someone hurt you or if a
colleague made a mistake, you should confront that person in a positive manner.
3.Sarcasm: Stop hiding your anger
behind sarcasm. Start saying things
straight. This will keep you from getting
bitter and using comments that can damage feelings.
4.Irritation: People who are constantly
irritated dont usually know the reason
behind their anger. Identify the cause and
youll know why even a dirty sock makes
you fume.
Mr Sriram is the Founder & Chief Mentor of Kuza Biashara Limited, a capacity
building organization coaching youth &
SME owners in Kenya. He also chairs Entrepreneurs Organisation for Africa.
E-mail: sri@kuzabiashara.co.ke

18

BUSINESS DAILY | Tuesday April 28, 2015

Entepise

PEOPLE | IDEAS | NEWS

Meet ventue capital m Y Combinatos bold boss


WHIZ KID Sam Altman is diversifying the

companys portfolio as well as driving efforts


to raise opportunities for minority founders

enture capital rm Y
Combinator
deed
expectations when it
replaced co-founder and longtime president Paul Graham
with Sam Altman, the whiz kid
behind social networking app
Loopt.
A year into his tenure, Altman
continues redening his rms
identity, making bigger and
bolder bets on startups from
across the spectrum. Meet the
new boss.
It was mid-2012, and it was
time for a change. Computer
programmer and entrepreneur Paul Graham realised that
Y Combinator, the inuential
Silicon Valley venture capital
rm and seed-stage accelerator
he co-founded in 2005, needed to
expand its horizons to keep pace
with the explosive growth of the
global startup culture.
Graham also recognised that
he was not the one to spearhead
this next phase in the rms life
cycle, so he began taking steps
to relinquish his presidency and
identify a successor.
Grahams search eschewed
the usual suspects and zeroed
in on Sam Altman, the young
co-founder of Loopt, a location-based social networking

app and graduate of Y Combinators rst-ever funding batch.


After Loopt was acquired in 2012
by debit-card issuer Green Dot
for $43.4 million (Sh4.04 billion),
the Stanford-educated Altman
launched early-stage venture
fund Hydrazine Capital.
It invested in startups like HR
software provider Zenets, now
valued at $650 million (Sh6.05
billion), and DNA-printing
tech developer Cambrian Genomics.

Entrepreneurial innovation
He also was an angel investor in Y Combinator-backed
companies such as digital payments juggernaut Stripe before
joining YC in 2011 as a part-time
partner.
Graham who in 2009 had
proclaimed Altman one of the
ve most interesting startup
founders of the past 30 years,
alongside icons like Apples
Steve Jobs and Googles Larry
Page and Sergey Brin knew
hed found his man.
Sam is what YC needs at
this stage in its evolution, Graham wrote in a February 2014
blog post announcing Altman
as president. Hes one of those
rare people who manage to be

cluding IA Ventures and AME


Cloud Ventures. Ive worked
for a lot of VCs nowabout 15
dierent funds and close to a
hundred angels. YC is there for
you. Theyre really helpful. The
lessons are very concrete. Other incubators are much fuzzier
and much less useful.
What has changed is the
sheer breadth of startups under YCs umbrella.

Compelling concept
Altman has vowed to boost the
number of dollars invested by
a factor of 10 over the next
decade, and while hes particularly bullish on verticals like
biotech, nuclear energy and
cyber-security, no compelling
concept is o-limits.
The winter 2015 batch ran
President of Y Combinator, Sam Altman speaks at TechCrunch Disrupt NY 2014 - Day 1 on May 5, 2014 in
the gamut from BuildScience,
New York City. AFP
a platform for commercial real
estate management, to curated
man augmentation and virtual YC vs start a company. [YC is] wine-buying site Underground
both fearsomely eective and
reality. Beyond diversifying his going to be an incredibly im- Cellar. And while software still
yet fundamentally benevolent
rms portfolio, Altman is driving portant force in the world. I dominates, hardware-focused
which, though few realise it,
eorts to diversify Silicon Valley decided it was more impact- companies made signicant
is an essential quality in earlystage investing. Sam is one of the
itself by increasing opportunities ful than any single company I strides, accounting for about
smartest people I know, and unfor minority founders.
could go run.
15 percent of the group.
derstands startups better than
Altmans vision for Y ComWe dont have any preconI started Loopt when I was
perhaps anyone I know, includ19. All throughout my life I have binators future builds on the ceived notions, Altman stressing myself.
been deeply immersed in start- core principles and philoso- es. We dont know where the
A year into his presidency,
ups, either because I was run- phies that Graham and co- next $10 billion company is
ning one or investing in them or founders Jessica Livingston coming from. Theyre all nonAltman is extending YCs reach
helping them. At this point, Ive (Grahams wife), Robert Morris obvious. We try to have a totally
and scope, positioning the rm
probably worked with a thou- and Trevor Blackwell installed open mind. I tell the partners
to capitalise on the next wave
sand startups in some way or an- a decade ago.
our goal is to nd as many $10
of entrepreneurial innovation
other, says Altman, who turned
The rms signature ap- billion-plus companies as we
across verticals like energy, articial intelligence, robotics, hu30 in April. After Loopt, it was proach remains
can, and because
essentially the
that is so restricThe m uns
tive, we have no
same: It still runs
two theeother restrictions.
two three-month
If we believe a
funding cycles
month funding
each year, oering
company can be
cycles each
startups hands-on
huge, then were
yea, oeing
mentorship at its
going to fund it, no
statups handsMountain View,
matter what their
on mentoship
Calif, headquarand Sh11.16m in business is.
ters and $120,000
Each new fundnances
(Sh11.16 million)
ing cycle yields
in nancing in
thousands
of
exchange for seven per cent pitches, but fewer than three
of equity. The startup found- per cent of hopefuls gain eners relocate to the Bay Area trance to the program.
for the entirety of the proAltman says candidates
gram, which includes weekly can dramatically improve
dinners keynoted by special their chances by following
guests and culminates in a basic ve-step formula for
Demo Day, when partici- success: Build a prototype of
pants present their products their idea; get it in front of
and services to a handpicked users or customers; let those
audience of potential investors users identify aws and poand advisors.
tential improvements; focus
Participants applaud the on growth; explain the probexperience. YC is very tacti- lem the startup is tackling with
cal. Its acutely useful, says clarity and eciency.
The very best founders Ive
Max Hodak, founder and
CEO of cloud-based life-sci- met were able to explain to me
ence research lab Transcrip- in two or three sentences why
tic, a member of YCs winter what they were doing was im2015 class and the recipient of portant or why it had a chance
more than $14 million in ven- of being big, Altman says.
ture funding from investors in- - ENTREPRENEUR.COM

Tuesday April 28, 2015 | BUSINESS DAILY

19

MONEY & MARKETS


NEWS I REVIEWS I ANALYSIS

Pice of land in
Loesho jumps as
upmaket cools o
REAL ESTATE Cost increases by 41pc,

with an acre going for Sh70.7 million

Top suburbs in
Nairobi

Average price per


acre (Shs in mn)

Upperhill

484.8

Parklands

384.1

Westlands

379.2

Eastleigh

292.6

Kileleshwa

260.3

Lavington

215.1

Gigiri

192.9

Spring
Valley

144

Muthaiga

107.5

10

Nyari

107.2

EAGC to help
fames access
Sh400bn India
pulses maket
A house in Ridgeways. FILE

SOURCE: HASS & STANLIB LAND INDEX

BY JOHN GACHIRI

Plots at Ridgeways and Loresho residential areas have substantially appreciated as other city suburbs showed
signs of cooling o.
The Nairobi Land Index by Hass
Consult and Stanlib Investments
shows between March 2013 and March
2014 the average price of land in Ridgeways and Loresho increased by 41.4
per cent and 41 per cent respectively,
well above the 17.6 per cent average for
18 suburbs making up the index.
The report found that the price of
an acre of land in Ridgeways as at the
end of March was Sh64.9 million while
a similar plot in Loresho was going for
Sh70.7 million. Stanlib regional direc-

tor James Muratha said the road network that has opened up Ridgeways
including through the northern bypass is the main reason for the land
price appreciation.
The upgrade in infrastructure
around this area has really boosted
Ridgeways, said Mr Muratha.
He added prices in the area have
also risen as a result of the suburb
neighbouring the diplomatic blue
zone of Gigiri and Runda.
The latest Nairobi Land Index
report, however, said that while average land prices in major suburbs
are still rising, the pace has generally
decelerated.
The average price of land in Nairobi increased by 17.9 per cent in 2014

that is lower than the 42.5 per cent


growth seen 2009. The slow pace is a
result of major suburbs entering the
mature phase of development.
Mr Muratha expects investors to
become pickier on where to buy land
since strong land price growth is not
guaranteed for all suburbs.
These results highlight the degree
to which selecting the right location
for land investments is now critical to
returns. As the index reveals, almost
any land purchase across Nairobi
would have made very high returns
in 2008 and 2009.
Land prices in Eastleigh and Runda had annual returns of 1.5 per cent
and 7.5 per cent respectively, that are

Devki, Tononoka in ace to


supply Sh300m SGR steel
BY GEOFFREY IRUNGU

Five Kenyan companies have submitted bids for a Sh300 million contract
to supply steel to the standard gauge
railway (SGR).
They are Apex Steel Mill Corporation,
Steel Makers Ltd, Devki Steel Mills, Prime
Steel Ltd and Tononoka Steel.
China Road and Bridge Corporation
(CRBC), doing the construction of the
railway, said one or more rms will be
awarded the tender set to be the rst of
two this year.
It said this was the rst major local
steel supply contract at $3.7 million
(Sh330 million). CRBC had previously
bought smaller consignments from different Kenyan steel makers.
CRBC will now evaluate the quotations and will select a suitable supplier
based on the stability of their production capacity, good sales performance,
excellent quality control and lower
price variations, said the company in
the statement.
The 5,250 tonnes of steel bars are
expected to meet requirements for the
construction of culverts and bridges
foundation for about three months.
We have tested the steel suppliers

products that are participating in this


process in our SGR project centre lab and
they have met the requirements for the
project, said James Chen, CRBC, business manager of department for external relations and cooperation for the
SGR project.
Local companies say they have adequate capacity to provide steel for the
construction of the new railway while
continuing regular supply to other steelintensive industries. However, this might
push up the prices of the commodity due
to the inability of the manufacturers to
adjust production in the short run.
CRBC expects to buy more steel towards the end of this year. Mr Chen said
the rm was keen on sourcing most of
the material locally, noting that buying within Kenya is quicker and would
contribute towards the growth of local
businesses.
Compared to international suppliers, local suppliers can supply materials
more eciently and timely, which is benecial to material planning and inventory management. At the same time if
the material is procured locally, we can
avoid complicated import procedures
and relieve the stress of transport, said
Mr Chen.

BY JOHN GACHIRI

lower than other asset classes such


as stocks and bonds. Data from the
Nairobi Land Index indicates the
average price of an acre in Eastleigh
was Sh292.6 million while an equivalent acre in Runda was priced at Sh67
million.
Karen, Kileleshwa, Kilimani, Langata, Lavington, Spring Valley, Upperhill, Westlands, Donholm, Gigiri, Kitisuru, Loresho, Muthaiga, Nyari and
Parklands were the other suburbs included in the report.
Upperhill was the priciest suburb
with an acre going for Sh484.8 million
as at March this year.
On average prices in Nairobi have
increased by 549.9 per cent since
2007. The current slow appreciation
is, however, expected to give buyers a
reprieve in the long-term since cost of
land as a percentage of the development will reduce.
jgachiri@ke.nationmedia.com

State wans
counties fo
delaying sacco
emittances
BY GITONGA MARETE

Accounts of counties and rms


defaulting on remittance of sacco
contributions will be frozen.
Deputy commissioner of Cooperatives Development and
Marketing Georey Karuku
said: We are shocked to hear
counties have defaulted on remittance of money deducted
from workers salaries. This is
illegal and we call upon saccos
to take up the matter with us.
The law allows us to send demand notices to those concerned
and even order banks to freeze
their accounts if they dont cooperate.
Mr Karuku, who spoke on
Saturday in Mombasa during
the Kenya Union of Savings &
Credit Co-operatives (Kuscco)
regional council meeting, was
reacting to reports that Mombasa County was holding Sh69
million in members contributions to Jitegemee Sacco.

Stance
Kuscco has says there is no
reason why counties should hold
money already deducted from
Since it (money) has not
been remitted it appears as
though members have defaulted on their repayment so they
are not eligible for more loans,
said Jitegemee executive ocer
Simeon Mwakoi during their annual general meeting at Tononoka Hall.
Kuscco national chairman
George Magutu (above) said
some counties were frustrating
saccos operations in the country,
noting that there was no reason
for employers to hold money they
had already deducted from workers salaries.
However, county secretary
Hamisi Mwaguya said the money
was part of arrears that had accrued when the defunct municipal council was in oce.

The East Africa Grain Council (EAGC)


will help small-scale farmers access
Indias Sh400 billion pulses market.
EAGC has said New Delhi is looking
to import about four million metric
tonnes of pulses yearly to meet the
rising demand.
The grain industry umbrella group
said the project will enable small scale
farmers in the region export beans,
chickpeas, cowpeas, lentils, lupins,
pigeon peas vegetables and other
pulses to India.
Under the Supporting India Trade
and Investments with Africa (Sita)
programme, Kenyan farmers will
get nancial and technical support
as well as reduction of tari barriers
over a three-year period.
Through the Sita programme,
EAGC members in Tanzania, Kenya
and Uganda, who include grain and
pulses producers, traders and processors, will be supported to produce and
export to India, said the lobby.
EAGC and the Indian government
are still in discussion on how much nancial assistance will be given.
The lobby and the International
Trade Centre are implementing the
project. The growing Indian population, made up mostly of vegetarians, has created strong demand for
pulses which cannot be met by local
farmers.
India is the biggest producer, consumer and importer of pulses in the
world. Pulses are the major source of
protein for vegetarian Indians, and
protein content in most of the pulses
is more than one-fth by their weight,
said Indian High Commissioner to
Kenya Yogeshwar Varma.
The EAGC said that regional farmers will have easier access to the lucrative market than Kenyans due to
lower tari barriers. Tanzania and
Uganda have duty-free access to India that Kenya does not have, said
the EAGC in a statement.

Indian High Commissioner to Kenya


Yogeshwar Varma. DIANA NGILA

20

BUSINESS DAILY | Tuesday April 28, 2015

Tuesday April 28, 2015 | BUSINESS DAILY

21

MONEY & MARKETS GLOBAL

Top 20 multi-billion dolla copoate


takeoves that have been abandoned
ACQUISITIONS

Top 20 Abandoned deals since 1980

Regulators and
shareholders can
derail large or
small bids

Comcast has abandoned its bid to buy rival Time Warner Cable in the sixteenth targets withdrawal deal in decades.

Comcasts failed bid for Time


Warner Cable

DATE WITHDRAWN ACQUIRER

Rio Tinto

Nov. 25, 2008

BHP Billiton Ltd

AstraZeneca

May 26, 2014

Pzer Inc

Sprint Nextel

July 13, 2000

MCI World Corn

ABN-AMRO Holding

Oct. 5, 2007

Barclays PLC

Telecom Italia

May 21, 1999

Deutsche Telekom AG

Time Warner

Aug. 5, 2014

21st Century Fox Inc

Warner-Lambert

Feb. 7, 2000

American Home Products

AT&T Wireless

Oct. 24, 2000

Shareholders

Rio Tinto PLC-WA Iron Ore

Oct. 18, 2010

BHP Billiton-WA Iron Ore Asts

Allergan

Nov. 19, 2014

Valeant Pharmaceuticals

Endesa

April 2, 2007

E ON AG

Walt Disney

April 28, 2007

Comcast

Shire

Oct. 20, 2001

AbbVie

MediaOne Group

May 1, 1999

Comcast

Total Fina

Sept. 13, 1999

Elf Aquitaine

Time Warner Cable

April 24, 2015

Comcast

Honeywell International

Oct. 2, 2001

GE

Yahoo!

May 3, 2008

Microsoft

TeliaSonera

June 30, 2008

France Telecom

US WEST

July 19, 1999

Global Crossing

Potash Corp

Nov. 14, 2010

BHP Billiton

DEAL VALUE( EXCLUDING DEBT)-$ BILLIONS


0

When people hear that one company


is buying another for however-many
billions of dollars, most assume its a
done deal. The truth is that regulators
and shareholders have been known
to axe mergers and acquisitions both
large and small. Despite the fame of
the names involved, Comcasts $45
billion deal for TimeWarner Cable
doesnt even make it into the top 10
of failed mergers. -REUTERS

$45bn

TARGET

20

40

60

80

100

120

140

SOURCE: THOMSON REUTERS

Zimbabwe beats
Q1 tax taget but
tax, oyalties fall
Zimbabwes tax collections were ve
percent above target at $897 million
during the rst quarter of this year but
revenue from companies and mining
royalties fell, the head of the national
tax agency said.
Zimbabwe nances its entire budget
from taxes because lenders like the International Monetary Fund (IMF)and
World Bank have said they will only
resume lending to the country once
it clears its debts with the global lenders.
Gershem Pasi, the Zimbabwe Revenue Authority (ZIMRA) commissioner
general said in his January-March report that taxes from individuals were
$200 million compared to a target of
$192 million after the agency launched
an assault on tax defaulters.
But revenue from companies was
$71.6 million, 12 per cent below target
and down 32 per cent from the same
period last year.
Mining royalties brought in $19.6
million instead of the targeted $32.5
million, said Pasi, blaming this on low
prices of platinum and gold, Zimbabwes
two largest mineral exports. ZIMRA collected $79 million from mining royalties
in the rst quarter of 2014. -REUTERS

Cude holds nea ve-month


high on US ig count, Yemen
Brent crude prices held near a
4-1/2 month high above $65 a
barrel yesterday, supported by
concerns over ghting in Yemen
disrupting Middle East supplies
and signs that US shale output
may have started to decline.
The number of active US rigs
drilling for oil has fallen for a
record 20 weeks in a row to the
lowest since 2010, according
to Baker Hughes data, fuelling
expectations of a drop in US
production.
Brent had edged down 5
cents to $65.23 a barrel by
0623 GMT, after posting its
third weekly gain last week
and touching a Dec. 10 high
of $65.80.
US crude fell 14 cents to
$57.01 a barrel, after rising for
the sixth consecutive week in
its longest stretch of gains since
the rst quarter of 2014.
Sustaining the recent oil
price rally requires rmer demand and a tangible supply
response, Barclays analysts
said in a note.
The cart is moving ahead
of the horse, and we take a cautious view on further price appreciation over the near term.

The Business Daily on 29th April, 2015, will publish


an informative report on POS Systems focusing on:
POS solution providers
Benefits offered by adoption of a good
quality POS system
Recent innovations in POS solutions.
Point of sale software solutions,
Offshore oil rig. FILE
The latest rig count points to
a slight decline in US oil production between the second
and third quarter, resulting
in a 200,000 barrels per day
(bpd) growth year-on-year in
the fourth quarter, Goldman
Sachs analysts said in an April
24 note.
But next years output is
expected to grow at a faster
pace of 280,000 bpd due to
increased productivity and a
backlog of uncompleted wells,
the bank said.
Fighting in Yemen raged on
as Saudi Arabia continued its
air strikes against Houthi militia forces in Aden, but there

were no fresh moves towards


dialogue.
While the Yemen crisis has
raised the risk premium for
oil, Shunling Yap, a senior oil
analyst at BMI Research, said
supply from the worlds top exporter Saudi Arabia remained
steady and there was no immediate threat to major oil shipping routes in the region.
Libyas oil output is set to
fall again as a strike by Libyan
security guards over salary payments has forced the closure of
the western El Feel oileld, a
spokesman for state oil rm
NOC said on Sunday.
-REUTERS

To advertise in this feature please contact:


Martin Kinyua on 0720 380 733 or
Tel:
Email: mkinyua@ke.nationmedia.com

22

BUSINESS DAILY | Tuesday April 28, 2015

MARKET DATA
Agro Commodities Market

Commodities

Early Morning wholesale commodity prices Date 27.04.2015


Unit

Kg

Nairobi Mombasa

Dry Maize

Bag

90

3000

3100

Green Maize

Ext Bag

115

3800

7800

Finger Millet

Bag

90

7500

8100

Sorghum

Bag

90

4000

3600

Wheat

Bag

90

Beans Canadian

Bag

90

7800

Beans Rosecoco

Bag

90

7500

7000

7000

6750

Beans Mwitemania

Bag

90

7500

7100

4900

6750

Mwezi Moja

Bag

90

7500

Dolichos (Njahi)

Bag

90

11000

10800

9000

10800

Green Gram

Bag

90

13000

11250

10800

10350

Cowpeas

Bag

90

7200

6750

8200

7200

5400

Fresh Peas

Bag

51

4000

6500

2500

5000

2550

Groundnuts

Bag

110

14000

14850

10000

11000

12600

12000

Red Irish Potatoes

Bag

50

3500

3800

4000

4200

3000

4500

White Irish Potatoes

Bag

50

3600

4300

4000

4200

2800

Cassava Fresh

Bag

99

1900

1700

2100

Sweet Potatoes

Bag

98

3500

3500

2500

3000

2000

Cabbages

Ext Bag

126

3000

2800

2500

2500

2800

2700

Cooking Bananas

Med Bunch

22

540

600

300

350

1200

350

Ripe Bananas

Med Bunch

14

650

500

300

750

560

Carrots

Ext Bag

138

4800

8300

4500

2400

2000

5000

COMMODITY

Kisumu

Nakuru

Eldoret

Kisii

3200

2500

2500

3200

3000

2400

1800

7200

7000

5850

3600

3550

4500

Call fo change

CEREAL

6400

Kolkata

3400

Indian labourers work


on machines inside a
jute mill at Jagatdal
some 75kms north of
Kolkata. While Narendra
Modi may be the toast of
Indias titans of industry,
bosses of the army of
small and mediumsized businesses
(SMEs) are beginning
to grow impatient for
change a year into his
premiership.

LEGUMES
7600
7200

7000
9200

4500
13000

ROOTS & TUBERS

2300

VEGETABLES

AFP

Tomatoes

Lg Box

64

6500

6400

6000

3500

4500

6000

Onions Dry

net

13

1000

1100

1300

1000

1040

700

Spring Onions

Bag

142

1900

3400

1500

1500

1400

1600

Kales

Bag

50

1500

1700

1700

1200

1400

2000

Chillies

Bag

38

2800

2300

1400

2500

2600

2500

1400

2500

Cucumber

Bag

50

2000

2000

Capsicums

Bag

50

2700

2000

Brinjals

Bag

44

2000

Cauliower

crate

39

2800

4700

Lettuce

Bag

51

2800

3000

Passion Fruits

Bag

57

4800

4500

3000

5000

3420

2850

Oranges

Bag

93

2800

3000

3000

3200

4800

2800

2700

African Index Weekly Commentary 24-04-2015

2500

COMPANY

FRUITS

Lemons

Bag

95

2800

3200

1600

Mangoes Local

Bag

126

2700

1500

2400

2400

Mangoes Ngowe

Sm Basket

25

950

750

1600

700

Limes

net

13

1000

1000

Pineapples

Dozen

13

720

900

650

480

1170

600

Pawpaw

Lg Box

54

1900

700

1300

2500

2700

650

Avocado

Bag

90

2500

3000

1500

2500

1600

900

310

360

300

280

360

330

OTHERS
Eggs

Tray

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

Unit Trusts
Effective date: 24th April 2015
MONEY MARKET FUND
CURRENCY
OLD MUTUAL
SH
BRITISH AMERICAN
SH
CBA
SH
UAP
SH
ICEA
SH
CIC
SH
AMANA
SH
MADISON ASSET
SH
GENCAP HELA
SH
PAN AFRICA PESA+
SH
STANLIB
SH
NABO AFRICA
USD
FIXED INCOME FUND
CURRENCY
GENCAP HAZINA
SH
NABO AFRICA
USD
CIC
SH
BALANCED FUND
OLD MUTUAL / TOBOA
SH
BRITISH AMERICAN
SH
BA MANAGED RETIREMENT
SH
AMANA
SH
ICEA
SH
GENCAP ENEZA
SH
MADISON ASSET
SH
UAP
SH
PAN AFRICA CHAMA+
SH
NABO AFRICA
USD
STANLIB
SH
CIC
SH
EQUITY FUND
OLD MUTUAL
SH
OLD MUTUAL EAST AFRICA FUND
SH
AMANA
SH
BRITISH AMERICAN
SH
CBA
SH
ICEA
SH
GENCAP HISA
SH
MADISON ASSET
SH
UAP
SH
NABO AFRICA
USD
STANLIB
SH
CIC
SH
BOND FUND
OLD MUTUAL BOND FUND
SH
BRITISH AMERICAN
SH
ICEA
SH
UAP
SH
PAN AFRICA PATA+
SH
STANLIB FUND B1
SH
STANLIB FUND A
SH
SHARIAH COMPLIANT
SH
GENCAP IMAN

DAILY YIELD
7.28%
9.72%
8.99%
11.01%
10.30%
11.42%

EFFECTIVE ANNUAL RATE


7.53%
10.21%
9.34%
11.64%
10.85%
12.11%

9.41%
10.06%
10.34%
10.02%
100.27
BUY
114.52
98.36
9.92

9.83%
10.45%
10.89%
10.49%
100.27
SELL
110.51
98.36
10.81

164.59
195.82
142.97

175.27
201.55
144.18

144.69
133.89
65.00
11.05
10.52
110.94
131.12
13.91

152.30
129.20
68.58
11.6
10.85
110.94
131.12
14.57

414.98
161.89

444.64
171.33

214.31
169.06
152.99
139.82
51.44
11.10
101.01
188.78
14.89

221.12
169.06
161.04
134.93
54.61
11.65
101.01
188.78
15.67

101.48
138.02
98.82
10.85
10.12
100.26
99.55

103.89
140.84
99.82
10.85
10.43
100.26
99.55

118.78

112.84

TICKER

SECTOR

COUNTRY

PRICE
US$

SAB MILLER
SAB SJ
BEVERAGES
ANGLO AMERICAN
AGL SJ
MINING
SASOL
SOL SJ
OIL & GAS
MTN GROUP
MTN SJ
TELECOMMUNICATIONS
STANDARD BANK
SBK SJ
BANKING & FINANCE
ANGLO PLATINUM
AMS SJ
MINING
ANGLOGOLD ASHANTI LTD
ANG SJ
MINING
TULLOW OIL PLC
TLW GN
OIL & GAS
MAROC TELECOM
IAM MC
TELECOMMUNICATIONS
DANGOTE CEMENT PLC
DANG NL
BUILDING MATERIALS
ORASCOM CONSTRUCTION
OCIC EY
CONSTRUCTION
ATTIJARIWAFA BANK
ATW MC
BANKING & FINANCE
NIGERIAN BREWERIES
NB NL
BREWERIES
BANQUE MAROCAINE DU COMMERCE BCE MC
BANKING & FINANCE
TELECOM EGYPT
ETEL EY
TELECOMMUNICATIONS
VODAFONE EGYPT
VODE EY
TELECOMMUNICATIONS
BANQUE CENTRALE POPULAIRE
BCP MC
BANKS
LAFARGE
LAC MC
BUILDING MATERIALS
DOUJA PROM ADDOHA
ADH MC
REAL ESTATE
SONATEL SN
SNTS BC
TELECOMMUNICATIONS
GUARANTY TRUST BANK
GUARANTY NL
BANKING & FINANCE
ZENITH BANK
ZENITH NL
BANKING & FINANCE
CGI
CGI MC
REAL ESTATE
GUINNESS NIGERIA PLC
GUINNES NL
BEVERAGES
COMMERCIAL INTERNATIONAL BANK CIB EY
BANKS
FIRST BANK
FIRSTBAN NL
BANKS
ABU KIR FERTILIZERS
ABUK EY
CHEMICALS
EAST AFRICAN BREWERIES
EABL KN
BREWERIES
SAFARICOM LTD
SAFCOM KN
TELECOMMUNICATIONS
MAURITIUS COMM. BANK
MCB MP
BANKING & FINANCE
MOBINIL
EMOB EY
TELECOMMUNICATIONS
T M G HOLDING
TMGH EY
REAL ESTATE
POULINA GROUP HOLDING
PGH TU HOLDING COMPANIES-DIVERS
ECOBANK TRANSNATIONAL INC
ETIT BC
BANKS
STANBIC IBTC BANK PLC
IBTCCB NL
BANKS
STATE BANK MAURITIUS
SBM MP
BANKING & FINANCE
BARCLAYS BANK KENYA
BCBL KN
BANKING & FINANCE
BANQUE DE TUNISIE
BT TU
BANKING & FINANCE
EQUITY BANK LIMITED
EQBNK KN
BANKING & FINANCE
KENYA COMM. BANK LTD
KNCB KN
BANKING & FINANCE

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

53.91
15.86
39.32
19.03
14.42
24.62
10.96
9.20
12.89
0.89
37.36
36.58
0.99
22.29
1.33
9.80
22.55
173.27
3.04
39.67
0.14
0.11
73.46
0.86
7.06
0.05
21.03
3.45
0.19
7.21
17.09
1.31
2.69
0.09
0.14
0.03
0.17
5.52
0.53
0.69

PRICE
CHANGE*
-1.2%
4.3%
1.1%
0.2%
-1.0%
-2.0%
-4.4%
0.1%
2.4%
-3.0%
0.0%
-1.0%
-5.4%
0.7%
-6.2%
-6.8%
1.8%
-0.3%
1.0%
-0.7%
-3.2%
-4.4%
0.7%
-1.4%
-3.8%
5.4%
0.0%
-5.2%
-0.8%
0.0%
-0.2%
0.6%
-1.2%
8.1%
-6.1%
-0.1%
-2.1%
0.6%
4.0%
-0.8%

MKT CAP
US$MN

P/E

90,174.34
22,148.36
26,693.94
34,684.02
22,753.46
6,573.69
4,428.45
8,327.05
11,334.98
15,179.96
7,731.02
6,950.50
7,385.83
4,000.60
2,271.07
2,353.05
3,903.54
3,032.22
980.97
3,966.87
4,194.84
3,523.98
1,352.30
1,287.81
6,411.22
1,727.54
1,769.47
2,731.57
7,462.20
1,768.74
1,708.73
2,712.79
484.22
1,607.88
1,389.16
922.07
905.76
828.52
1,974.71
2,068.14

20.2
5.7
12.3
15.6
12.8
20.2
12.4
436.8
18.1
18.6
-39.6
14.9
28.4
54.5
7.9
7.4
14.3
18.9
5.2
12.6
8.0
6.9
35.5
0.0
13.3
5.1
10.9
37.7
26.2
12.4
-47.8
30.8
14.2
4.9
10.3
10.1
15.7
10.8
11.3

SHARES IN
ISSUE MN
1,672.6
1,396.7
678.9
1,822.2
1,577.8
267.0
404.0
904.9
879.1
17,040.5
206.9
190.0
7,562.6
179.5
1,707.1
240.0
173.1
17.5
322.6
100.0
29,431.2
31,396.0
18.4
1,505.9
908.2
32,632.0
84.1
790.8
40,065.4
237.8
100.0
2,063.6
180.0
17,212.2
10,000.0
30,374.0
5,431.5
150.0
3,702.8
2,984.2

Global Commodity Prices


Effective date: 27th April 2015
OIL& GAS

METALS & MINING

SOFTS
SYMBOL CURRENCY

LAST

NET CHG

SYMBOL CURRENCY

LAST

NET CHG

SYMBOL

CURRENCY

LAST

NET CHG

SUGAR NO5

USD

371.60

-3.10

100 OZ GOLD USD

1182.00

6.80

LIGHT CRU DE USD

56.77

-0.38

COFFEE

USD

173.00

-3.00

SILVER

JPY

60.00

0.00

NO 2 HT OIL

1.92

-0.01

COCOA

USD

2860.00

54.00

HG COPPER

USC

2.74

0.05

BRENT CRUDE USD

64.76

-0.52

RUBBER

JPY

211.00

0.00

PLATINUM

JPY

4316.00

6.00

GAS OIL

584.00

-3.25

FROZEN CON1 USC

113.95

-4.65

ALUMINIUM

CNY

13325.00

120.00

NATURAL GAS USD

2.49

-0.04

COTTON NO2 USC

67.09

0.59

KEROSINE

59000.00

-130.00

USD

USD

JPY

Tuesday April 28, 2015 | BUSINESS DAILY

23

MARKETDATA
DATA
MARKET

Geece now
eshues
Euope,IMF
talks team
Greek Prime Minister Alexis Tsipras
yesterday reshued his team handling
talks with European and IMF lenders,
after his nance minister was sharply
criticized for his performance at a euro
zone meeting last week.
Athens is dangerously close to bankruptcy and is scrambling to nd a deal
with increasingly furious lenders to unlock aid before it runs out of money or
defaults on debt payments in May.
Tsipras and senior aides expressed
support for Yanis Varoufakis and agreed
the nance minister would supervise a
new team negotiating a reforms deal
with lenders, but appointed deputy
Foreign Minister Euclid Tsakalotos as
coordinator of the group, a government
ocial said.
The appointment suggested Tsakalatos, an Oxford-educated economist and
professor who is soft-spoken and wellliked by ocials representing creditors,
would have a more active role in faceto-face talks from now on.
Varoufakis, a brash and outspoken
economist who has rubbed many of his
peers up the wrong way, was left isolated
at a Eurogroup meeting in Riga and returned empty-handed at a time when
Athens desperately needs new aid to
avoid bankruptcy.

Dinner
He was later criticised by media for
failing to appear at a state dinner after
the meeting. He responded by tweeting a quotation by American statesman
Franklin Roosevelt which read they are
unanimous in their hate for me; and I
welcome their hatred.
Prominent conservative lawmaker
Dora Bakoyannis was among those
calling for his head, telling Skai TV
that Varoufakis was a drag on the
talks and that the best thing he can do
is to resign.
Support for Finance Minister Yanis
Varoufakis, who has been targeted by
international media reports, was conrmed during the meeting, the government ocial said, referring to a Sunday
meeting of Tsipras with top aides.
Related Coverage
The nance minister always acts
in line with collective decisions and the
governments leadership.In another
move suggesting a less prominent role
for Varoufakis, his general secretary
Nikos Theocharakis, who had been
leading technical-level talks with the
so-called Brussels Group of lenders,
will now focus on drawing up a plan
for growth to be the basis for a new deal
with lenders in June.George Chouliarakis, considered close to the powerful
deputy Prime Minister Yannis Dragasakis, will take over responsibility for
talks with the Brussels group.
REUTERS

ACTIVE COUNTERS
Scan Group

Williamson Tea
280.00
0.00%

Jul 14

Apr15
81.36
3.44
2.50%

Earnings per share


Price to earnings ratio (p/e)
Dividend Yield

Kakuzi
Uchumi
Kenya

44.75
0.00%

Jul 14

Apr15
2.70
16.57
0.89%

Earnings per share


Price to earnings ratio (p/e)
Dividend Yield

EABL
Eaagards

284.0018.80 Kenya
Kenya
9.65%
2.17%

Kenya

Jul 14

Kenya

Apr15

244.00
33.25
7.49%
-5.00%

Jul 14

Apr15

8.171.35 Earnings
Earnings
share
perper
share
13.93
34.76
Price
to earnings
ratio
(p/e)
Price
to earnings
ratio
(p/e)
1.60%
1.32%

Earnings
share
Earnings
perper
share
Price
to earnings
ratio
(p/e)
Price
to earnings
ratio
(p/e)
Dividend
Yield
Dividend
Yield

Dividend
Yield
Dividend
Yield

Jubilee

Limuru
Kenya

Jul 14

Apr15

Earnings per share


Price to earnings ratio (p/e)
Dividend Yield

C&G
Longhorn
Kenya

-0.28
-3400.00
0.11%

30.25
7.75
-3.20%
-2.52%

Jul 14

USE All Share

Jul 14

Apr15

Jul 14

Apr15

Kenya
Kenya

Jul 14

Apr15

50.00
0.00%

11.75
712.00
0.00%
0.14%

Apr15

Jul 14
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield

Mumias
KPLC
Kenya
Kenya

Jul 14

-6.35
per share
42.55 Earnings
Earnings
per share
-1.85
to earnings
ratioratio
(p/e)(p/e)
to earnings
16.73 PricePrice
0.00%
YieldYield
Dividend
5.97% Dividend

Jul 14

Apr15
3.65
13.70
1.50%

14.452.15
0.35%
-4.44%

Apr15
2.23
-1.77
6.48
-1.21
0.00%

RSE All Share


Rwanda

137.05
0.00%

34,317.54
-0.49%

2,691.67
1.23%

Jul 14

48.00
11.88
1.49%

Nigeria

Tanzania

2,038.00
-1.47%

55,188.34
0.92%

BAT Airways
Kenya

Apr15

NGSE All share

DSE All Share

Uganda

South Africa

Earnings per share


Price to earnings ratio (p/e)
Dividend Yield

per share
1.627.48 Earnings
Earnings per share
Price to earnings ratio (p/e)
4.784.04 Price to earnings ratio (p/e)
Yield
2.64% Dividend
Dividend Yield
25.81%

Tracking the markets: Benchmark Index (Latest Data)


Africa
JSE All Share Index

Jul 14

Apr15

Earningsper
pershare
share
-1.30
8.82 Earnings
Pricetotoearnings
earningsratio
ratio(p/e)
(p/e)
-25.58
27.66 Price
DividendYield
Yield
0.00%
2.25% Dividend

Unga
570.00
0.00%

952.00
0.00%

Apr15

Jul 14

Apr15

World
DJ Industrial

Xetra Dax
11,772.30
-0.33%

18,080.14
0.12%

Jul 14

Apr15

Jul 14

Nikkei

HangSeng

Frankfurt

New York

Apr15

Apr15

Mumbai
19,983.32
-0.18%

28,433.59
1.33%

Jul 14

Sensex

Tokyo

Hongkong

Jul 14

Apr15

27,218.79
-0.80%

Jul 14

Apr15

24

BUSINESS DAILY | Tuesday April 28, 2015

MARKET DATA
African Indices

Nairobi Stocks

NAME

NSE 20 Share Index

5,056.27
-0.10%

Nairobi

JSE ALL SHARE INDEX

5,500.00

ALSIUG

5,400.00

ZSE INDUSTRIAL

5,300.00

CFG INDEX

5,200.00

MALAWI ALL SHR

5,100.00

DSE ALL SHR IDX

5,000.00

NSE ALL SHARE/D

4,900.00

EGX 30 IDX/D

4,800.00

TUN MAIN INDEX


April15

RSE ALLSHARE IND

171.59
-0.56%

Nairobi

182.00
177.00
172.00
167.00
162.00
157.00
152.00
147.00
July 14

April 15

FTSE Pan African Index

1,235.73
0.01%

Nairobi
1500.00
1450.00
1400.00
1350.00
1300.00
1250.00
1200.00
1150.00
July 14

April 15

Active
Active Counters
Counters
Last fri

Prev fri

Price

Price

Change

Total Shares
Traded

Safaricom

17.10

17.30

-1.16%

2,988,200

Mumias

2.15

2.25

-4.44%

1,206,400

22.25

22.50

-1.11%

1,205,700

KCB

63.00

63.00

0.00%

933,600

Co-Op Bank

20.00

20.75

-3.61%

686,300

British American

Gainers
Last fri

Prev fri

Net

Price

Change

Counter

Price

Kakuzi

284.00

259.00

25.00

9.65%

3.15

3.05

0.10

3.28%

Home Africa

Chng

Total

24.50

23.75

0.75

3.16%

Sasini

16.25

16.00

0.25

1.56%

HF

34.25

33.75

0.50

1.48%

Last fri
Price

Prev fri
price

Net
Change

Losers
Counter

%
Chng

Umeme

17.10

19.00

-1.90

-10.00%

Sameer

5.30

5.70

-0.40

-7.02%

Eaagads

33.25

35.00

-1.75

-5.00%

Mumias
Pan Africa

5,056.27

-4.82

NET.CHNG

PCT.CHNG
-0.10%

OPEN

HIGH

5,061.09

LOW

5,061.09

CLOSE

5,061.09

5,061.09

ZAMBIA

6,009.26

13.69

0.23%

5,995.57

6,030.34

5,995.57

5,995.57

SOUTH AFRICA

55,188.34

501.80

0.92%

54,962.46

55,355.12

54,686.54

54,686.54

UGANDA

2,038.00

-30.00

-1.47%

2,068.00

2,068.00

2,068.00

2,068.00

ZIMBABWE

157.10

-0.47

-0.30%

157.57

157.57

157.57

157.57

MOROCCO

21,109.45

36.73

0.17%

21,115.21

21,115.21

21,109.45

21,072.72

MALAWI

15,959.25

34.01

0.21%

15,925.24

15,925.24

15,925.24

15,925.24

TANZANIA

2,691.67

32.78

1.23%

2,658.89

2,658.89

2,658.89

2,658.89

NIGERIA

34,317.54

-168.18

-0.49%

34,485.72

34,505.72

34,316.72

34,485.72

EGYPT

8,493.68

-140.18

-1.62%

8,634.90

8,693.85

8,493.68

8,633.86

TUNISIA

5,502.96

21.93

0.40%

5,495.15

5,502.96

5,468.49

5,481.03

RWANDA

137.05

0.00

0.00%

137.05

137.05

137.05

137.05

Daily Share Report

All Share Index (NASI)

Counter

LAST

KENYA

LUSE ALL SHARE INDEX

5,600.00

July 14

LOCATION

NSE 20 - SHR IDX

2.15

2.25

-0.10

-4.44%

120.00

125.00

-5.00

-4.00%

MARKET UPDATES

52 WK
HIGH

52 WK
LOW

AGRICULTURAL
100.00
26.00
EAAGADS
346.00
110.00
KAKUZI
180.00
120.00
KAPCHORUA TEA
1185.00
620.00
LIMURU TEA
27.50
27.50
REA VIPINGO
18.50
11.50
SASINI
319.00
240.00
WILLIAMSON TEA
AUTOMOBILES & ACCESSORIES
62.00
31.00
CAR & GEN
13.60
8.00
MARSHALLS
9.40
5.20
SAMEER
BANKING
18.45
15.05
BARCLAYS
155.00
104.00
CFC STANBIC
280.00
216.00
DTBK
63.00
31.00
EQUITY
55.00
32.00
HF
147.00
120.00
I&M HOLDINGS
65.50
42.25
KCB
34.00
22.25
NBK
85.00
55.00
NIC BANK
357.00
290.00
STAN. CHART.
25.00
17.10
CO-OP BANK
COMMERCIAL
8.50
4.15
EXPRESS (K)
20.25
20.25
HUTCHINGS BIEMER
13.50
7.00
KQ
30.75
7.30
LONGHORN PUBLISHERS
325.00
222.00
NATION MEDIA
247.00
40.00
SCANGROUP
47.50
26.25
STANDARD GRP
49.50
32.00
TPS EA
15.60
8.00
UCHUMI
CONSTRUCTION & ALLIED
95.00
72.00
ARM CEMENT LTD
206.00
135.00
BAMBURI
165.00
83.00
CROWN BERGER
17.00
13.50
EA CABLES
110.00
51.00
EAPC
ENERGY & PETROLEUM
13.15
8.70
KENGEN
10.50
7.90
KENOLKOBIL
18.50
12.85
KENYA POWER
32.00
22.00
TOTAL
23.00
13.00
UMEME
INSURANCE
40.00
16.40
BRITISH AMERICAN
12.40
7.50
CIC INSURANCE
599.00
301.00
JUBILEE
21.00
16.00
KENYA RE
26.00
15.10
LIBERTY KENYA
142.00
101.00
PAN AFRICA
INVESTMENT
84.50
35.00
CENTUM INVEST.
10.85
2.50
OLYMPIA
30.00
16.00
TRANSCENTURY
INVESTMENT SERVICES
15.00
NAIROBI SECURITIES EXCHG 28.00
MANUFACTURING & ALLIED
11.10
11.10
A. BAUMANN
165.00
123.00
BOC GASES
1050.00
521.00
BAT KENYA
37.00
19.60
CARBACID
355.00
250.00
EABL
5.35
2.65
EVEREADY EA
192.00
4.40
K. ORCHARDS
3.85
1.35
MUMIAS
56.50
22.00
UNGA
TELECOMMUNICATION & TECHNOLOGY
SAFARICOM
17.50
11.75
GROWTH AND ENTERPRISE MARKET SEGMENT
ATLAS DEVT & SUPPORT
13.75
11.00
8.00
FLAME TREE GROUP HOLDINGS 14.00
5.80
2.90
HOME AFRICA
1500.00
KURWITU VENTURES LTD 1500.00

YTD
%

VWA
LAST
PRICE

VWA
PREV
PRICE

DAILY
PRICE
CHANGE

DAILY
TRADED
SHARES

SHARES
ISSUED

EPS
LATEST
12MNTH

P/E
TRAILING

PBV
TRAILING

DPS
LATEST
12MNTH

TOTAL
DIVIDEND
YIELD

-16.67%
43.89%
-8.76%
23.48%
0.00%
24.51%
12.90%

33.25
284.00
125.00
952.00
27.50
16.25
280.00

35.00
259.00
125.00
952.00
27.50
16.00
280.00

-5.00%
9.65%
0.00%
0.00%
0.00%
1.56%
0.00%

2,000
300
17,800
-

32,157,000
19,599,999
3,912,000
1,200,000
60,000,000
228,055,500
8,756,320

1,069,220,250
5,566,399,716
489,000,000
1,142,400,000
1,650,000,000
3,705,901,875
2,451,769,600

-1.30
8.17
32.21
-0.28
5.85
0.54
81.36

-25.58
34.76
3.88
-3400.00
4.70
30.09
3.44

2.66
1.92
0.35
4.64
0.74
0.59
0.39

3.75
5.00
1.00
0.25
7.00

0.00%
1.32%
4.00%
0.11%
0.00%
1.54%
2.50%

-15.74%
22.45%
-5.00%

45.50
12.00
5.30

45.50
12.00
5.70

0.00%
0.00%
-7.02%

100
2,800

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

1,824,700,514
172,717,272
1,475,214,683

6.57
-11.90
-0.24

6.93
-1.01
-22.08

0.87
0.44
0.63

0.60
-

1.32%
0.00%
0.00%

-7.49%
0.00%
-3.40%
-1.00%
-26.23%
0.00%
10.53%
-5.05%
1.74%
3.58%
3.75%

15.60
124.00
228.00
49.50
34.25
120.00
63.00
23.25
59.00
347.00
20.00

15.45
124.00
227.00
49.50
33.75
123.00
63.00
23.50
58.50
347.00
20.75

0.97%
0.00%
0.44%
0.00%
1.48%
-2.44%
0.00%
-1.06%
0.85%
0.00%
-3.61%

192,200
13,000
20,500
554,800
110,600
165,400
933,600
33,200
31,800
7,000
686,300

5,431,536,000
395,321,638
242,110,105
3,702,777,020
352,416,667
392,362,039
2,984,227,692
308,000,000
639,945,603
309,159,514
4,889,316,295

84,731,961,600
49,019,883,112
55,201,103,940
183,287,462,490
12,070,270,845
47,083,444,680
188,006,344,596
7,161,000,000
37,756,790,577
107,278,351,358
97,786,325,900

1.54
14.38
21.92
4.55
4.21
13.56
5.63
3.11
7.07
33.21
1.64

10.13
8.62
10.40
10.88
8.14
8.85
11.19
7.48
8.35
10.45
12.20

2.62
2.12
2.40
3.56
1.32
2.15
2.94
0.53
1.82
2.96
2.28

1.00
6.15
2.40
1.80
1.50
2.90
2.00
1.00
17.00
0.50

6.41%
4.96%
1.05%
3.64%
4.38%
2.42%
3.17%
0.00%
1.69%
4.90%
2.50%

-6.45%
0.00%
-14.37%
-14.05%
-14.83%
-1.10%
0.72%
-6.76%
4.48%

5.60
20.25
7.30
7.75
225.00
44.75
35.00
34.75
10.65

5.80
20.25
7.45
7.95
224.00
44.75
35.00
34.50
10.50

-3.45%
0.00%
-2.01%
-2.52%
0.45%
0.00%
0.00%
0.72%
1.43%

200
423,800
74,400
1,400
6,200
7,000
27,200

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

198,261,224
7,290,000
10,924,223,956
1,889,062,500
42,422,014,350
16,954,213,315
2,860,613,280
6,330,550,253
3,886,819,910

0.01
-18.34
-2.25
1.62
13.10
2.70
2.57
3.45
1.45

560.00
-1.10
-3.24
4.78
17.18
16.57
13.62
10.07
7.34

1.00
3.49
1.04
5.19
2.07
1.58
0.57
0.97

2.00
10.00
0.40
0.50
1.35
0.30

0.00%
0.00%
0.00%
25.81%
4.44%
0.89%
1.43%
3.88%
2.82%

-12.79%
7.91%
-0.90%
-3.70%
-5.17%

76.00
150.00
110.00
15.55
55.00

75.00
150.00
110.00
15.60
55.00

1.33%
0.00%
0.00%
-0.32%
0.00%

1,500
205,100
100
24,000
1,400

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

37,640,900,000
54,443,891,250
2,609,970,000
3,936,093,750
4,950,000,000

3.01
9.80
9.01
1.37
-4.30

25.25
15.31
12.21
11.35
-12.79

4.63
1.88
1.92
1.63
1.02

0.60
12.00
1.75
1.00
-

0.79%
8.00%
1.59%
6.43%
0.00%

-5.34%
3.45%
20.07%
-1.04%
-9.52%

9.80
9.05
17.40
24.50
17.10

9.75
9.00
17.35
23.75
19.00

0.51%
0.56%
0.29%
3.16%
-10.00%

183,000
82,700
76,500
28,900
345,800

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

21,543,942,269
13,319,438,860
33,955,526,583
4,288,203,297
27,768,313,886

1.29
0.74
3.31
2.26
1.34

7.60
12.23
5.26
10.84
12.73

0.31
2.00
0.78
0.84
3.03

0.40
0.20
0.50
0.70
0.90

4.08%
2.21%
2.87%
2.86%
5.28%

-24.37%
-3.65%
26.67%
4.69%
0.00%
4.17%

22.25
9.25
570.00
18.05
23.25
120.00

22.50
9.25
570.00
17.85
23.25
125.00

-1.11%
0.00%
0.00%
1.12%
0.00%
-4.00%

1,205,700
251,500
41,200
16,000
700
5,000

1,938,415,838
2,615,538,528
59,895,000
699,949,068
535,707,499
96,000,000

43,129,752,396
24,193,731,384
34,140,150,000
12,634,080,677
12,455,199,352
11,520,000,000

1.47
0.43
48.00
4.48
2.14
9.07

15.14
21.51
11.88
4.03
10.86
13.23

2.49
2.99
3.19
0.70
2.35
3.45

0.30
0.10
8.50
0.70
0.50
-

1.35%
1.08%
1.49%
3.88%
2.15%
0.00%

0.00%
6.73%
-16.80%

61.00
5.50
16.10

61.00
5.55
16.10

0.00%
-0.90%
0.00%

83,600
11,800
-

665,441,775
40,000,000
280,284,476

40,591,948,275
220,000,000
4,512,580,064

4.54
0.38
-8.53

13.44
14.47
-1.89

2.00
0.28
0.85

0.00%
0.00%
0.00%

19.50

19.55

-0.26%

17,100

194,625,000

3,795,187,500

2.13

9.15

5.20

0.38

1.95%

0.00%
8.00%
-21.70%
-5.75%
3.57%
21.62%
0.00%
15.38%
25.79%

11.10
135.00
712.00
20.25
320.00
4.40
110.00
2.15
50.00

11.10
135.00
711.00
20.50
319.00
4.50
110.00
2.25
50.00

0.00%
0.00%
0.14%
-1.22%
0.31%
-2.22%
0.00%
-4.44%
0.00%

4,500
138,400
323,200
53,600
1,206,400
-

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

42,624,733
2,635,935,210
71,200,000,000
5,160,752,757
253,047,793,920
924,000,000
1,415,493,640
3,289,500,000
3,785,443,650

-2.02
11.76
42.55
1.93
8.21
-0.85
0.15
-1.77
3.65

-5.50
11.48
16.73
10.49
38.98
-5.18
733.33
-1.21
13.70

1.81
9.40
3.12
9.26
2.86
578.95
0.31
0.81

5.20
42.50
0.30
5.50
0.75

0.00%
3.85%
5.97%
1.48%
1.72%
0.00%
0.00%
0.00%
1.50%

23.13%

17.10

17.30

-1.16%

2,988,200

40,065,428,000

685,118,818,800

0.57

30.00

8.55

0.47

2.75%

-25.61%
-

11.00
9.75
3.15
1500.00

11.00
9.75
3.05
1500.00

0.00%
0.00%
3.28%
0.00%

1,300
393,200
-

433,063,193
161,866,804
405,255,320
102,272

4,763,695,123
1,578,201,339
1,276,554,258
153,408,000

-0.04
0.92
0.05
-62.40

-275.00
10.60
63.00
-24.04

0.92
-

0.00%
9.44%
0.00%
0.00%

MKT CAP.
KSHS

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

Tuesday April 28, 2015 | BUSINESS DAILY

MARKET DATA

MARKET DATA
Equities & Bonds
Kenya Treasury and Infrastructure Bonds

Share Price Performance Scorecard


SCORECARD AS AT 27TH MARCH 2015
NAME
A BAUMANN
ATLAS DEVPNT & SPPRT SERV
ATHI RIVER MINING
BAMBURI
BARCLAYS KEN
BAT KENYA
BOC KENYA
BRITISH AMERICAN
CAR & GENERAL
CARBACID INV
CENTUM INV
CFC STANBIC BANK
CIC INSURANCE
CO-OP BANK
CROWN BERGER
DIAMOND KEN
EA CABLES
EA PORT CEM
EAAGADS
EA AFR BREW
EQUITY BANK
EVEREADY EA
EXPRESS KEN
FLAME TREE HLDNGS
G WILLIAMSON
HUTCHINGS BIEMER
HOME AFRICA LIMITED
HOUSING FIN
I&M HOLDING
JUBILEE HLDS
KAKUZI
KAPCHORUA
KEN ORCHARDS
KENGEN
KENYA AIRWAYS
KENYA COM BK
KENOLKOBIL
KENYA POWER
KENYA RE
KURWITU
LIBERTY HOLDINGS
LIMURU TEA
LONGHORN
MARSHALL
MUMIAS SUGAR
NAIROBI SECURITIES
NATION MEDIA
NATL BANK KEN
NIC BANK
OLYMPIA CAPITAL
PAN AFR INS
REA VIPINGO
SAFARICOM
SAMEER AFRICA
SASINI
SCANGROUP
STANDARD GRP
STD CHART KEN
TOTAL KENYA
TPS (EA)
TRANSCENTURY
UCHUMI SUPER
UNGA GROUP

PREVIOUS
11.10
11.00
75.00
150.00
15.45
711.00
135.00
22.50
45.50
20.50
61.00
124.00
9.25
20.75
110.00
227.00
15.60
55.00
35.00
319.00
49.50
4.50
5.80
9.75
280.00
20.25
3.05
33.75
123.00
570.00
259.00
125.00
110.00
9.75
7.45
63.00
9.00
17.35
17.85
1500.00
23.25
952.00
7.95
12.00
2.25
19.55
224.00
23.50
58.50
5.55
125.00
27.50
17.30
5.70
16.00
44.75
35.00
347.00
23.75
34.50
16.10
10.50
50.00

CLOSE
11.10
11.00
76.00
150.00
15.60
712.00
135.00
22.25
45.50
20.25
61.00
124.00
9.25
20.00
110.00
228.00
15.55
55.00
33.25
320.00
49.50
4.40
5.60
9.75
280.00
20.25
3.15
34.25
120.00
570.00
284.00
125.00
110.00
9.80
7.30
63.00
9.05
17.40
18.05
1500.00
23.25
952.00
7.75
12.00
2.15
19.50
225.00
23.25
59.00
5.50
120.00
27.50
17.10
5.30
16.25
44.75
35.00
347.00
24.50
34.75
16.10
10.65
50.00

% 1D
0.00
0.00
1.33
0.00
0.97
0.14
0.00
-1.11
0.00
-1.22
0.00
0.00
0.00
-3.61
0.00
0.44
-0.32
0.00
-5.00
0.31
0.00
-2.22
-3.45
0.00
0.00
0.00
3.28
1.48
-2.44
0.00
9.65
0.00
0.00
0.51
-2.01
0.00
0.56
0.29
1.12
0.00
0.00
0.00
-2.52
0.00
-4.44
-0.26
0.45
-1.06
0.85
-0.90
-4.00
0.00
-1.16
-7.02
1.56
0.00
0.00
0.00
3.16
0.72
0.00
1.43
0.00

% 5D
0.00
-3.51
2.70
0.00
0.00
-9.30
0.75
-9.18
0.00
-1.22
2.52
-0.80
0.00
-6.98
8.91
0.88
-0.64
-6.78
-7.64
-3.03
4.21
10.00
-1.75
-0.51
0.72
0.00
5.00
-2.14
-4.00
0.71
1.43
-11.35
0.00
-1.51
0.69
-1.56
2.26
1.75
1.40
0.00
-2.11
0.00
-4.32
0.84
-4.44
-0.51
-4.66
1.09
2.61
0.00
-4.76
0.00
-0.87
-6.19
4.84
1.70
-6.04
0.87
4.26
2.21
-8.52
2.90
10.50

% 1M
0.00
-4.35
-4.40
-6.25
-9.57
-12.21
0.00
-14.42
-2.67
-3.57
-3.17
-0.80
-7.04
-4.76
-7.56
-5.39
0.32
-3.51
-6.99
-1.23
-2.94
11.39
-6.67
2.09
-2.44
0.00
-1.56
-8.67
-4.00
0.00
2.53
-3.85
-1.79
-1.51
-13.10
4.13
-4.74
-3.06
-3.99
0.00
-5.10
-15.30
-11.43
0.42
-4.44
-2.26
-7.79
-5.10
0.85
-6.78
-6.25
0.00
3.01
-6.19
17.33
-3.76
-7.28
2.97
-5.77
3.73
-8.26
-1.84
14.94

% 3M
0.00
-8.33
-6.75
-2.60
-3.70
-20.89
-2.88
-22.61
-8.08
-17.35
-3.94
-0.80
-6.57
4.44
-5.17
-5.39
-3.42
-8.33
-10.14
1.59
-8.33
10.00
-9.68
18.90
-6.67
0.00
-19.23
-29.74
-3.23
24.18
30.28
-16.67
0.00
2.08
-32.72
8.62
-1.63
14.47
4.94
0.00
0.00
2.81
-22.11
2.56
-27.12
-2.26
-16.04
-7.00
-12.59
-13.39
4.35
0.00
21.28
-15.87
25.48
0.00
-4.76
1.76
-7.55
-7.95
-12.02
-16.14
19.05

% 6M
0.00
-13.14
-3.23
-7.42
-28.37
-10.00
-12.75
-25.41
-14.74
6.09
3.33
-7.04
-5.88
-10.57
-12.31
-3.42
-15.38
-22.67
16.36
-1.98
15.79
-25.83
-2.10
0.00
0.00
-25.14
-9.77
24.73
32.09
-28.57
-39.23
-10.50
-18.89
17.76
-8.12
3.57
3.14
2.20
-3.84
-69.00
18.23
16.22
-4.88
-23.73
-10.58
-12.59
-24.66
2.56
0.00
40.16
-18.46
16.07
6.55
-11.39
2.36
-5.77
-11.46
0.00
12.11
25.00

% 1Y
0.00
-11.63
-18.92
-7.14
28.29
-8.78
23.27
41.09
-39.10
55.41
0.00
0.00
-12.09
30.95
-0.87
1.63
-41.18
17.70
9.22
36.55
29.41
14.29
0.36
0.00
0.00
1.48
0.00
86.89
144.83
-10.07
1579.39
-16.24
-42.75
26.63
1.12
16.78
-10.86
21.09
53.55
-42.16
32.60
-32.81
-27.18
-21.19
-4.84
18.28
-10.45
0.00
31.03
-23.19
-2.11
-3.76
8.53
9.46
-2.00
-14.20
0.00
-26.04
100.00

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE


ISSUE
DATE

MATURITY
DATE

APRIL 27 2015

ISSUED VALUE

COUPON

TRADED

IN MILLIONS

(%)

YIELD

PREVIOUS
PRICE
%)

ISSUE NO.

TOTAL
VALUE TRADED
(KSHS)

TWO YEAR BONDS


FXD 3/2013/2YR

26-AUG-13

24-AUG-15

17,927.40

12.9390

101.1994

FXD 4/2013/2YR

24-DEC-13

21-DEC-15

25,251.00

11.5530

100.7087

FXD 1/2014/2YR

24-MAR-14

21-MAR-16

20,000.00

10.8030

100.2806

FXD 2/2014/2YR

26-MAY-14

23-MAY-16

20,130.15

10.7930

100.1729

FXD 3/2014/2YR

22-DEC-14

19-DEC-16

8,905.12

10.8900

100.2546

FXD 1/2015/2YR

23-JAN-15

20-FEB-17

23,592.55

11.4700

101.0594

FIVE YEAR BONDS


FXD 1/2010/5YR

24-MAY-10

18-MAY-15

11,924.85

6.9510

98.9033

FXD 2/2010/5YR

30-NOV-10

23-NOV-15

14,973.10

6.6710

97.2455

FXD 1/2011/5YR

31-JAN-11

25-JAN-16

22,083.10

7.6360

97.0450

FXD 1/2012/5YR

28-MAY-12

22-MAY-17

31,079.55

11.8550

101.7292

FXD 1/2013/5YR

29-APR-13

23-APR-18

20,240.75

12.8920

103.9832

FXD 2/2013/5YR

1-JUL-13

25-JUN-18

26,340.05

11.3050

100.3825

FXD 3/2013/5YR

25-NOV-13

19-NOV-18

14,937.80

11.9520

102.5966

FXD 1/2014/ 5YR

28-APR-14

22-APR-19

25,540.95

10.8700

97.8865

FXD 2/2014/ 5YR

23-JUN-14

17-JUN-19

16,418.25

11.9340

101.3943

24-APR-06

13-APR-15

3,060.25

13.5000

102.2668

NINE YEAR BONDS


FXD 1/2006/9YR
TEN YEAR BONDS
FXD 1/2006/10YR

27-MAR-06

14-MAR-16

3,451.05

14.0000

102.1563

FXD 2/2006/10YR

29-MAY-06

16-MAY-16

5,028.10

14.0000

103.9277

FXD 1/2007/10YR

29-OCT-07

16-OCT-17

9,308.80

10.7500

99.3880

FXD 1/2008/10YR

29-OCT-07

16-OCT-17

2,992.75

10.7500

95.8019

FXD 2/2008/10YR

28-JUL-08

16-JUL-18

13,504.70

10.7500

97.5365

FXD 3/2008/10YR

29-SEP-08

28-SEP-18

4,151.60

10.7500

94.9482

FXD 1/2009/10YR

27-SEP-09

15-APR-19

4,966.85

10.7500

96.1897

FXD 1/2010/10YR

26-APR-10

13-APR-20

19,394.15

8.7900

86.1135

FXD 2/2010/10YR

1-NOV-10

19-OCT-20

18,849.90

9.3070

91.4516

FXD 1/2012/10YR

25-JUN-12

13-JUN-22

16,803.75

12.7050

103.2849

FXD 1/2013/10YR

1-JUL-13

19-JUN-23

12,643.05

12.3710

FXD 1/2014/10YR

27-JAN-14

15-JAN-24

30,520.25

12.1800

12.2500

99.8158

345,000,000

FXD 1/2014/10YR

27-JAN-14

15-JAN-24

30,520.25

12.1800

12.2300

99.8158

345,000,000

25-SEP-06

11-SEP-17

4,031.40

13.7500

97.6357

101.0156

ELEVEN YEAR BONDS


FXD1/2006/11YR
TWELVE YEAR BONDS

Corporate Bonds
APRIL 27, 2015

25

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE


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

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

PREVIOUS
PRICE
(%)

TOTAL
VALUETRADED

FXD1/2006/12YR

28-AUG-06

13-AUG-18

3,900.95

14.0000

105.2139

FXD1/2007/12YR

28-MAY-07

13-MAY-19

4,864.60

13.0000

104.9016

FIFTEEN YEAR BONDS


FXD1/2007/15YR

26-MAR-07

7-MAR-22

3,654.60

14.5000

109.0397

FXD2/2007/15YR

25-JUN-07

6-JUN-22

7,236.95

13.5000

105.5567

FXD3/2007/15YR

26-NOV-07

7-NOV-22

17,568.00

12.5000

99.9310

2,917.10
1,250.80

13.5000
12.7500

105.2550
99.9620

FXD1/2008/15YR

31-MAR-08

13-MAR-23

7,830.90

12.5000

100.6070

1,480.60
196.50
1.00

13.2500
13.6000

99.1677
100.0000

FXD1/2009/15YR

26-OCT-09

7-OCT-24

9,420.45

12.5000

102.7808

FXD1/2010/15YR

29-MAR-10

10-MAR-25

20,823.73

10.2500

88.1557

500.00
4,239.70
760.30

12.7500
12.7500

100.7057
100.0000

FXD2/2010/15YR

25-APR-11

8-DEC-25

13,513.10

9.0000

81.9916

FXD1/2012/15YR

24-SEP-12

6-SEP-27

21,089.45

11.0000

89.7601

1,260.40
739.60

11.5000

99.4819
85.5534

FXD1/2013/15YR

25-FEB-13

7-FEB-28

40,886.33

11.2500

90.8891

FXD2/2013/15YR

29-APR-13

10-APR-28

17,385.85

12.0000

95.5914

100.0000
100.0000

TWENTY YEAR BOND

13.0000

FXD1/2008/20YR

30-JUN-08

5-JUN-28

20,360.95

13.7500

112.6478

97.91
2,402.09

12.5000

100.0000
100.0000

FXD1/2011/20YR

30-MAY-11

5-MAY-31

9,365.80

10.0000

79.8372

FXD1/2012/20YR

26-NOV-12

1-NOV-32

43,082.72

12.0000

13.0650

93.1196

100,000,000

15,625

12.5000

100.0150

FXD1/2012/20YR

26-NOV-12

1-NOV-32

43,082.72

12.0000

13.0000

93.1196

100,000,000

8.0000

93.8370
103.0000

FXD1/2012/20YR

26-NOV-12

1-NOV-32

43,082.72

12.0000

13.0300

93.1196

100,000,000

2,969.10
1,166.50
5,864.40

13.0000

100.0000

28-JUN-10

28-MAY-35

20,192.50

11.2500

91.8177

3,429.00
226.00

12.8000

28-FEB-11

21-JAN-41

23,888.95

12.0000

91.0563

6,000.00

13.0000

96.8124

IFB 1/2009/12YR

23-FEB-09

8-FEB-21

19,726.85

12.5000

105.1593

2,000.00

13.0000

99.9807

IFB 2/2009/12YR

7-DEC-09

22-NOV-21

18,897.65

12.0000

102.4081

5,514.50

12.5000

100.0000

IFB 1/2010/8YR

1-MAR-10

19-FEB-18

15,908.05

9.7500

98.2874

IFB 2/2010/9YR

31-AUG-10

19-SEP-19

32,871.55

6.0000

88.4106

IFB 1/2011/12YR

3-OCT-11

18-SEP-23

43,447.35

12.0000

102.1552

IFB 1/2013/12YR

30-SEP-13

15-SEP-25

38,841.68

11.0000

99.3605

IFB 1/2014/12YR

27-OCT-14

12-OCT-26

35,060.55

11.0000

98.4647

IFB 1/2015/12YR

30-MAR-15

15-MAR-27

25,695.35

11.0000

97.3907

621.50
1,378.50

200.00
4,287.00

8.5000

100

TWENTY FIVE YEAR BOND


FXD1/2010/25YR
THIRTY YEAR BOND

100.0000

SDB 1/2011/30YR

INFRASTRUCTURE BONDS

5,000.00

13.0000

100.0000

5,080.00

12.9500

100.0000

7,000.00

12.7500

99.7589

9,047.35

12.2500

100.2003

26

BUSINESS DAILY | Tuesday April 28, 2015

MARKET DATA
Global Markets & 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
94.15
142.88
102.35
7.78
31.81
20.57
7.26
16.44
25.63
77.42
98.62
79.11
10.91
12.11
13.72
1.48
12.15
70.68
25.10
15.18
73.63

SELL
94.30
143.16
102.56
7.80
31.97
20.71
7.36
16.68
25.67
77.59
98.91
79.26
10.93
12.14
13.75
1.48
12.17
70.80
25.15
15.21
73.79

MEAN
94.22
143.02
102.46
7.79
31.89
20.64
7.31
16.56
25.65
77.50
98.77
79.19
10.92
12.13
13.73
1.48
12.16
70.74
25.12
15.19
73.71

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

FTSE 100

Europes Blue Chips

Currencies

BID
1.08
119.22
1.51
0.96
0.78
1.22
8.62
7.78
1.77
6.88
51.45
2.72
135.48
63.68
3.71
25.31
278.32
22.90
3.93
129.20
1.80
59.99
0.40
11.70
2.27
1.51
7.00
185.93
2.85
0.51
18.05
56.52
3.41
4.08
21.55
111.05
473.50
3.67
108.69
1,545.30
0.10
909.00
100.23
6.22
177.00
97.65
7.63
20.40
3.85
42.60
15.00
7,027.63
685.00
94.30
457.70
84.00
12.08
1.37
9.90
2,994.00
310.00
431.45
34.80
198.95
13.09
200.02
2,025.50
1.53
4,325.00
21,936.00
703.00
12.08
32.68
1.95
1,905.00
2,998.00
605.35
605.35
35.60
12.10
378.00

ASK
1.08
119.26
1.51
0.96
0.78
1.22
8.62
7.79
1.82
6.88
51.51
2.73
135.78
63.69
3.71
25.34
278.72
23.00
3.94
129.38
1.80
60.19
0.40
11.71
2.29
1.51
7.01
185.98
2.85
0.51
18.45
57.11
3.42
4.08
21.60
111.45
476.50
3.67
109.78
1,565.30
0.10
939.00
101.73
6.22
178.00
98.16
7.63
20.60
3.87
43.60
15.50
7,527.63
696.00
94.50
458.70
85.00
12.13
1.37
9.91
3,149.00
318.00
451.45
35.50
199.05
13.74
201.02
2,035.60
1.54
4,425.00
23,295.00
710.00
12.13
32.69
1.95
1,915.00
3,008.00
610.35
610.35
35.90
12.11
381.00

Based on one day performance in local currency


% PERFORMANCE IN LOCAL CURRENCY
COMPANY

COUNTRY

INDUSTRY

LAST

CHG % CHG

1-WK

YTD

52-WK

BNP PARIBAS

FRANCE

BANKS

58.99

0.98

1.69

7.04

19.8

5.75

RIO TINTO

UNITED KINGDOM

GENERAL MINING

3003.5

45.5

1.54

7.23

0.1

-8.39

FINANCIERE RICHEMONT

SWITZERLAND

CLOTHING&ACCESSORIES

84.3

1.1

1.32

2.74

-5.1

-4.64

BARCLAYS

UNITED KINGDOM

BANKS

261.75

3.3

1.28

2.53

7.5

3.87

ING GROEP

NETHERLANDS

BANKS

13.97

0.18

1.27

3.87

29

37.98

BANCO SANTANDER S.A.

SPAIN

BANKS

6.66

0.08

1.26

1.59

-2.9

-2.37

DAIMLER

GERMANY

AUTOMOBILES

87.16

0.97

1.13

2.77

26.4

28.65

LVMH MOET HENNESSY

FRANCE

CLOTHING&ACCESSORIES

161.05

1.75

1.1

-2.66

21.8

25.27

SIEMENS

GERMANY

DIVERSIFIED INDUSTRIALS

99.33

1.05

1.07

0.38

1.89

BASF

GERMANY

COMMODITY CHEMICALS

91.39

0.92

1.02

2.48

30.8

11.36

BAYER

GERMANY

SPECIALTY CHEMICALS

135.3

1.15

0.86

1.35

19.7

39.47

VODAFONE GROUP

UNITED KINGDOM

MOBILE TELECOMMUNICATIONS

232.25

1.9

0.82

2.58

4.3

7.32

BT GROUP PLC

UNITED KINGDOM

FIXED LINE TELECOMMUNICATIONS

467.6

3.7

0.8

3.91

16.5

25.67

STANDARD CHARTERED

UNITED KINGDOM

BANKS

1070

0.75

1.9

11.1

-17.76

UNILEVER CVA

NETHERLANDS

FOOD PRODUCTS

41.3

0.28

0.69

0.1

26.5

36.66

SANOFI SA

FRANCE

PHARMACEUTICALS

95.86

0.51

0.53

0.22

26.7

25.14

DEUTSCHE BANK

GERMANY

BANKS

31.58

0.16

0.53

2.85

26.4

-1.17

ANHEUSER-BUSCH INBEV

BELGIUM

BREWERS

113.6

0.5

0.44

-0.57

21

43.92

DIAGEO

UNITED KINGDOM

DISTILLERS&VINTNERS

1870.5

6.5

0.35

-0.32

1.2

3.6

NESTLE

SWITZERLAND

FOOD PRODUCTS

74.5

0.25

0.34

-1.91

2.1

10.86

UBS GROUP

SWITZERLAND

BANKS

19.32

0.06

0.31

2.49

13

8.56

SAP

GERMANY

SOFTWARE

69.12

0.21

0.3

3.77

18.6

20.25

GLAXOSMITHKLINE

UNITED KINGDOM

PHARMACEUTICALS

1534.5

0.26

-2.6

11.5

-7.06

PRUDENTIAL

UNITED KINGDOM

LIFE INSURANCE

1632

0.25

-0.27

9.4

21.52

LLOYDS BANKING GROUP PLC

UNITED KINGDOM

BANKS

79.1

0.11

0.14

0.44

4.3

4.78

SCHNEIDER ELECTRIC SE

FRANCE

ELECTRICAL COMPONENTS&EQUIPMENT

69.4

0.01

0.01

-0.32

14.5

1.49

BANCO BILBAO VIZCAYA ARGN SPAIN

BANKS

9.37

UNCH.

...

1.88

20.5

7.29

UNILEVER

UNITED KINGDOM

FOOD PRODUCTS

2974

-1

-0.03

-0.6

13.2

14.83

RECKITT BENCKISER GRP

UNITED KINGDOM

NONDURABLE HOUSEHOLD PRODUCTS

5991

-10

-0.17

0.86

15

21.01

BRITISH AMERICAN TOBACCO

UNITED KINGDOM

TOBACCO

3746.5

-6.5

-0.17

0.6

9.4

ENI

ITALY

INTEGRATED OIL&GAS

17.03

-0.06

-0.35

1.01

17.4

-9.12

ABB

SWITZERLAND

INDUSTRIAL MACHINERY

20.68

-0.14

-0.67

-0.53

-2.2

-10.09

TELEFONICA S.A.

SPAIN

FIXED LINE TELECOMMUNICATIONS

13.66

-0.1

-0.69

1.34

14.6

14.22

BG GRP

UNITED KINGDOM

INTEGRATED OIL&GAS

1167.5

-9

-0.76

-2.1

35

1.52

NOVARTIS AG

SWITZERLAND

PHARMACEUTICALS

99.8

-0.8

-0.8

2.67

8.1

33.42

ROCHE HOLDING PART. CERT.

SWITZERLAND

PHARMACEUTICALS

276.6

-2.3

-0.82

2.37

2.5

8.39

TOTAL

FRANCE

INTEGRATED OIL&GAS

48.01

-0.41

-0.85

-1.77

12.9

-3.88

AXA

FRANCE

FULL LINE INSURANCE

22.87

-0.24

-1.04

-2.41

19.1

21.07

BP PLC

UNITED KINGDOM

INTEGRATED OIL&GAS

478.4

-5.75

-1.19

-0.2

16.4

-2.24

ROYAL DUTCH SHELL A

UNITED KINGDOM

INTEGRATED OIL&GAS

2066

-25.5

-1.22

-1.1

-4.1

-8.36

Global Indices
NAME

LOCATION

LAST

NET.CHNGPCT.CHNG

DJ INDU AVERAGE

NEW YORK

18,080.14

21.45

0.12%

OPEN

HIGH

18,056.42

18,108.87

LOW

CLOSE

18,009.08 18,058.69

FTSE EUROTOP 100

LONDON

3,250.48

-8.23

-0.25%

3,256.36

3,272.53

3,243.58

3,258.71

XETRA DAX PF/D

FRANKFURT

11,772.30

-38.55

-0.33%

11,881.25

11,901.89

11,729.04

11,810.85

CAC 40 INDEX/D

PARIS

5,145.73

-55.72

-1.07%

5,198.79

5,208.33

5,135.89

5,201.45

FTSE MIB/D

MILAN

23,254.26

-173.09

-0.74%

23,449.13

23,467.06

23,154.64

23,427.35

SMI PR/D

SWITZERLAND 9,233.76

-68.36

-0.73%

9,340.24

9,346.08

9,228.66

9,302.12

HANG SENG INDE/D

HONG KONG

28,433.59

372.61

1.33%

28,245.14

28,588.52

28,245.14 28,060.98
19,909.86 20,020.04

NIKKEI 225 INDEX

TOKYO

19,983.32

-36.72

-0.18%

20,063.80

20,069.24

ALL ORDINARIES

AUSTRALIA

5,954.85

48.074

0.81%

5,906.80

5,956.90

5,906.80

5,906.77

STRAITS TIMES/D

SINGAPORE

4,458.29

15.92

0.36%

4,451.83

4,466.07

4,446.62

4,442.37

SSE COMPOSITE/D

SHANGHAI

4,528.10

134.41851

3.06%

4,441.93

4,529.74

4,441.93

4,393.69

S&P SENSEX/D

MUMBAI

27,218.79

-219.15

-0.80%

27,565.49

27,567.28

27,160.45

27,437.94

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

LAST
1086.50
2792.00
1571.00
472.69
1651.00
788.50
1174.00
306.40
527.61
4680.50
512.00
259.80
3696.00
1164.00
834.50
1547.00
1847.00
473.60
1787.27
464.80
3155.40
265.80
1168.33
1130.00
2957.00
1877.00
1857.50
207.90
188.00
1181.00
719.50
303.10
362.00
309.55
1522.88
669.24
1180.40
646.50
559.30
570.00
2830.00
1231.00
3323.00
2673.00
265.08
3390.00
249.40
353.90
1263.00
262.88
78.15
544.00
546.18
191.80
898.18
7115.00
228.70
864.50
542.50
1645.11
1359.00
5929.00
350.69
2054.00
1106.00
2080.42
583.08
2984.50
1046.33
4933.00
415.94
3517.00
265.50
3290.00
2511.00
483.30
5595.00
466.00
1127.00
1169.00
131.60
1589.00
1093.50
2174.00
620.00
426.20
220.85
2942.00
995.50
645.50
230.50
1737.00
3935.00
1580.85
5350.00
7.45

CLOSE
1082.00
2771.00
1581.00
473.60
1672.00
793.50
1186.00
305.30
531.00
4749.50
515.00
261.75
3746.50
1167.50
838.00
1564.00
1854.00
478.40
1796.00
467.60
3148.00
264.50
1169.00
1134.00
2978.00
1900.00
1870.50
208.70
188.80
1190.00
723.50
303.60
363.00
311.20
1534.50
674.50
1181.00
629.70
559.50
572.00
2829.00
1224.00
3305.00
2684.00
269.60
3412.00
253.40
355.20
1269.00
263.40
79.10
544.50
554.50
194.10
906.10
7175.00
231.00
874.50
551.50
1632.00
1360.00
5991.00
353.90
2066.00
1116.00
2092.00
583.00
3003.50
1050.00
4950.00
422.30
3554.00
268.10
3306.00
2532.00
484.70
5615.00
469.90
1135.00
1184.00
134.90
1605.00
1070.00
2198.00
605.00
418.00
224.80
2974.00
1003.00
631.50
232.25
1755.00
3938.00
1574.00
5335.00
7.45

NET.CHNG
4.50
21.00
-10.00
-0.80
-21.00
-5.00
-12.00
1.10
-3.00
-69.00
-3.00
-1.95
-50.50
-3.50
-3.50
-17.00
-7.00
-4.80
-8.00
-2.80
8.00
1.30
-1.00
-4.00
-21.00
-23.00
-13.00
-0.80
-0.80
-9.00
-4.00
-0.50
-1.00
-1.65
-12.00
-6.00
0.00
16.80
0.50
-2.00
1.00
7.00
18.00
-11.00
-4.50
-22.00
-4.00
-1.30
-6.00
-0.50
-0.94
-0.50
-8.00
-2.30
-7.90
-60.00
-2.30
-10.00
-9.00
13.50
-1.00
-62.00
-3.30
-12.00
-10.00
-11.00
0.00
-19.00
-3.00
-17.00
-6.40
-37.00
-2.60
-16.00
-18.00
-1.40
-20.00
-3.90
-8.00
-15.00
-3.30
-16.00
23.50
-24.00
15.00
8.20
-3.95
-32.00
-7.50
14.00
-1.75
-18.00
-3.00
7.00
15.00
0.00

PCT.CHNG
0.42%
0.76%
-0.63%
-0.17%
-1.26%
-0.63%
-1.01%
0.36%
-0.56%
-1.45%
-0.58%
-0.74%
-1.35%
-0.30%
-0.42%
-1.09%
-0.38%
-1.00%
-0.45%
-0.60%
0.25%
0.49%
-0.09%
-0.35%
-0.71%
-1.21%
-0.70%
-0.38%
-0.42%
-0.76%
-0.55%
-0.16%
-0.28%
-0.53%
-0.78%
-0.89%
0.00%
2.67%
0.09%
-0.35%
0.04%
0.57%
0.54%
-0.41%
-1.67%
-0.64%
-1.58%
-0.37%
-0.47%
-0.19%
-1.19%
-0.09%
-1.44%
-1.18%
-0.87%
-0.84%
-1.00%
-1.14%
-1.63%
0.83%
-0.07%
-1.03%
-0.93%
-0.58%
-0.90%
-0.53%
0.00%
-0.63%
-0.29%
-0.34%
-1.52%
-1.04%
-0.97%
-0.48%
-0.71%
-0.29%
-0.36%
-0.83%
-0.70%
-1.27%
-2.45%
-1.00%
2.20%
-1.09%
2.48%
1.96%
-1.76%
-1.08%
-0.75%
2.22%
-0.75%
-1.03%
-0.08%
0.44%
0.28%
0.00%

LI E

MANAGEMENT

INVESTMENT People must learn that making a lot

of money is one thing while getting rich is another

MANAGEMENT
Deal with butal facts
in business o peish
Page 28

27

FOOTBALL
Eden Hazads
sta shines

Page 31

PERSONAL FINANCE

Avoid these common


money mistakes on
oad to wealth ceation
here is a dierence between being
rich and having wealth.
Wealth is the abundance of
something in such surplus that no conditions can destroy it. Making a lot of money
is one thing, getting rich another. Creating
wealth, well, thats what very few people
ever learn. You have heard the expression
get rich quick, but you will never hear
get wealthy quick.
Ever hear the saying, money never
sleeps? The wealthy take this literally
and believe that money must work around
the clock to grow. The wealthy respect and
pay attention to their money knowing that
nothing multiplies without attention. They
also know money wants to be loved and
acknowledged.
Sound crazy? Show me someone that

Tuesday April 28, 2015 | BUSINESS DAILY

doesnt pay attention to their money or is


disrespectful of it and I will show you someone lacking money.
The wealthy also avoid mistakes that big
income earners and the rich make. Here are
some common money mistakes you must
avoid to create wealth:

. Seeking comfort, not freedom


Comfort is the enemy of abundance
and the most dangerous element of
nances.
The entire middle class is built on seeking comfort. The wealthy seek freedom
and so much abundance that money is no
longer dependent on their eorts. More is
the mantra, abundance is the armation,
comfort isnt on their menu and freedom
is the focus.

. Diversication
You can never get truly wealthy by diversifying your investments. Wall Street has
done a great job of selling the public on this idea
of diversifying because it benets Wall Street.
Mark Cuban says Diversication is for idiots.
Andrew Carnegie said put all your eggs in one
basket and then watch that basket.
If you want to create real wealth learn everything you can about a space and go all in.

. Depending on one income ow


No matter how big your income is, never
depend on one ow. I knew an executive
who was earning $350,000 a year, the top one
per cent of all incomes. Suddenly the industry
she worked in came to halt and her one income
ow was shut down. This has happened to many
Americans, destroying trillions of dollars of pretended wealth.
To create wealth, you must make investments that will create dependable streams of
income ows, independent of your main source
of income. I use rental income from apartments
and partnerships in other companies to throw
o passive ows of income. I continue to pay
attention to each of these ows to make them
stronger. This is not diversication its fortication of wealth.

. Comparing to others
Seventy-six per cent of working Americans are living paycheque to paycheque.
Comparing your nances to others will ensure
you never create wealth. People often compare
their situation to some starving nation in a remote part of the world to justify being better

Most entrepreneurs
seek comfort from
their businesses
instead of focusing
on wealth creation.

o. Another persons nances, good or bad, will


not pay your bills, wont fund your retirement
and will not provide you peace of mind. Dont
compare your nances to someone elses.

. Investing in trends
Avoid investing in the latest and greatest
technologies that can be displaced by new
technological developments.
Warren Buett invests in electricity, railroads,
banks, insurance, soft drinks, food companies
and candy. Dont get on the roller coaster. Take the
longer, slower ride that guarantees arrival.

. Trusting without proof


The single biggest mistake of my nancial
life was navely trusting a group of people
because I liked them and it felt right. I neglected
to get proof that they were actually as they presented. Instead I went with my feelings and was
deceived. By the time I gured out something
was wrong, I was out millions.
Disregard your feelings when it comes to people and always look for solid evidence. If you are
so close to people that you are not willing to ask
them to provide evidence, make it a policy not
to do business with them.

. Saving to save
It is impossible to create real wealth just
by saving money. The banks only pays .25
per cent, so it will take you 40 years to grow your
money 10 per cent if rates stay where they are.
More importantly, money that sits around idle
always seems to nd an emergency to fund.
Dave Ramsey suggests you not carry cash or
credit cards because when either is available -youll create a reason to use it.
To guarantee my wealth, since the age of 25,
I moved surplus money into future investments
accounts that I could not easily access, so that
money was available for investments when I
nally had the knowledge and courage to do
so. This kept me broke and having to hustle
constantly.

. Pretender spender.
On the other end of the spectrum is the
pretender spender. They try to impress
others with how they spend money. Its not their
money, it is always someone elses. Sports cars,
expensive clothes, designer bags, shoes, VIP tables the list is endless.
The wealthy are not trying to impress anyone,
they are seeking freedom. When the wealthy hit
auence and abundance, they start throwing
money around on ridiculous things cars, boats,
planes, vacation homes. By then, it no longer
matters that the things are poor investments.
The very wealthy may appear to be aunting
their money with extravagances, but in reality
they are not. The money they are spending is
miniscule compared to the abundance theyve
created. Sounds good doesnt it? So what will it
be for you: middle class, rich or wealthy?
You know money wont make you happy and
just getting by wont either. There is a price to be
paid for whatever choice you make. Wealth provides you with options and the person that has
options has freedom. - ENTREPRENEUR

28

BUSINESS DAILY | Tuesday April 28, 2015

Life: Management
EXTINCTION Companies that are slow to adapt to change end up collapsing regardless of their size in the market

Deal with butal


facts in business
o isk peishing
tinent. Once in Europe they can seek out a
country that has a liberal enough asylum
and immigration policy to house them and
provide them with welfare assistance until
STAYING AHEAD
they can nd work. Sweden and Germany
are two particularly popular destinations
CANUTE WASWA
in this regard.
Just think how crazy this is: Africa has
he rst step in Alcoholics Anony- masses of low-wage workers, like China. It
mous involves is admitting that sits right next to Europe. It could be and
should be the Taiwan of the eastern Medithere is a problem.
This is considered the most vital step, terranean, but instead it is throwing in the
and it is also the only step that members towel as her young people literally risk life
must work completely. If the individual and limb to sneak into Europe.
That means that for Africa to unlock her
does not accept this rst step it will not be
possible for them to benet from the rest of potential, she must do what Jim Collins in
the programme. This is because it is only the his book Good to Great calls confronting
feelings of powerlessness and unmanage- the brutal facts. Anybody who succeeds
ability that motivates memmust be able to confront
bers to make radical changes
the brutal facts of their curAnybody who
to their life.
rent reality, whatever they
My thinking about AA
might be.
succeeds must
has been triggered by the inBut how does this whole
be able to
creasing number of distressnarrative t in with your busiconfont the
ing stories about migrants
ness? Simple. Many people get
into business not knowing
drowning in the Mediterbutal facts of
ranean while attempting to
how hard it is to actually be
thei cuent
reach the coastline of southsuccessful. They are misled
eality, whateve
ern Europe.
by the person who gets them
they might be
Most of those attempting
in, and they think that their
to enter Europe illegally are
path to success and nancial
coming from across Africa, others from the freedom will be easy. Then when they nd
Middle East. Setting sail from lawless Lib- out that its not, they get discouraged and
ya they are attempting to reach mainland quit. The story is the same over and over.
Europe where they rightly anticipate that They get in. Its harder than they thought.
they will be able to take advantage of the They get discouraged. They quit.
European Unions internal open-border arOne brutal fact of business is just the fact
rangements to travel freely across the con- that you have to do things that scare you.

Identify
obstacles in your
business as well
as new trends to
help you change
strategies as
well as stay
relevant and
competitive.

You cant just post Facebook status updates


and be successful. You have to actually pick up
the phone, or get out of your house, and talk to
real people, and market your business.
In his book, Jim Collins explains how in
confronting the brutal facts, the good-to-great
companies left themselves stronger and more
resilient, not weaker and dispirited. There
is a sense of exhilaration that comes in facing head-on the hard truths and saying, We
will never give up. We will never capitulate.
It might take a long time, but we will nd a
way to prevail.
The brutal facts for most companies are
largely the same. Much like biology, companies can suer a form of extinction. As in
biology, it often happens because the environment changes and the company cannot
adapt fast enough to survive.
In the business world, the pace of evolution is much faster. The limiting factors cannot be controlled. However, one advantage
over nature is that the crisis can actually be
made aware of. In other words, a company

can face the problem and come up with a solution over time. A creature does not usually
have this luxury. The bigger the animal, the
more likely it will become extinct. The same
can be true for companies given the inertia
and a lack of focus.
Will Rogers said it a long time ago: Even if
youre on the right track, youll get run over if
you just sit there. The atter the world gets,
the faster that will happen. Sometimes I get
the feeling that Africa got itself on the right
track with reform wholesale, but then, for
a lot of tangible and intangible reasons, it
just sat there and reform stalled. The more
Africa just sits there, the more it is going to
get run over.
While people are trapped in denial they
will not be able to develop the motivation
to stop their behaviour. And Africa wont go
down alone. It will go down with you.
I hope you see the connection.
Mr Waswa is a management and HR specialist and managing director of Outdoors Africa.
E-mail: waswa@outdoorsafrica.co.ke.

Fou ways to build successful stat-up and keep it aoat

he business world is in a constant state of evolution.


From edgling startups to
well-established ventures, companies
today need to be ready to pivot as unpredictable markets could demand a
shift in a business model. At times, it
can seem dicult (even impossible)
to weather these extraneous forces -especially as a new venture. Here are
tips on how to start your company in
the face of uncertainty and keep it going, come what may:

. Act small, dream big


When starting a new venture in
an emerging market or with an
untested model, its important to keep
costs as close to zero as possible. Those
whove bootstrapped their company
know this better than anyone.

When we started InstaBrand, we


worked out of my dining room for
months to keep overhead costs down.
We started with only a few hundred
dollars, and it was very, very carefully
spent. Instead of hiring developers or
bringing on a technical co-founder,
the entire system and workow were
built in Google Docs the personal
version.
Keeping costs close to zero gave us
something others didnt have time.
We could run our bootstrap operation indenitely, and every dollar we
brought in was a dollar used to grow
the company.
While trying to grow our business
model, we made a lot of small mistakes. But those mistakes turned out
to be the keys to our success.
Instead of building our ideal cus-

tom website for big bucks, we put up


a Squarespace site and invested just
a few hours into doing so. Instead of
spending money on marketing, we
went to trade shows to network often nding ways to attend for free.
When testing new concepts that required ad spend, like Google Adwords
for example, we would build $5 campaigns instead of $500 campaigns.
We were able to learn from our
mistakes at a lower cost and stay
dynamic.

. Being exible is better than


being right
Inuencer marketing was brand
new and basically untested when we
rst started the company two years
ago. Whatever long-term commitments we made a lease, building

technology, signing up for a SaaS tool


we asked if it would still be useful if
we pivoted in another direction and
how quickly could we recoup the cost if
not. Always staying exible allowed us
to be dynamic and adapt with emerging market trends.

. Build a smart team


At rst, we didnt have the funds
or the resources to attract experienced talent. We started by hiring
people who could quickly learn a task
and solve problems.
The result for us was a team that
took a very fresh approach to some
of the ad industrys oldest rituals and
problems. We learned as we went, and
team members were quickly switching and taking on new roles based on
skill and performance. By hiring peo-

ple who could handle any challenge


or task thrown at them, we were able
to keep our core team strong as the
market changed and shifted.

. Be passionate, and start


networking
In business, its important to
hang with the right crowd.
These people can be board members, advisers or friends. Find people
who have realised success in their lives
and can teach and guide you. Surround
yourself with a diverse group so that
you have dierent experiences and
skill sets to draw upon.
You dont need to wait until you
have funding, a cool oce space or
a rockstar team to start approaching
these people. All you need is passion.
- ENTREPRENEUR

Tuesday April 28, 2015 | BUSINESS DAILY

29

Life: Management

Suviving the bad and good times in family entepise


CHALLENGES Investments always face

hurdles no matter how well you plan


FAMILY BUSINESS
PETER MUTUA
The owners servants came and asked him, Master, you sowed good seed in
your eld didnt you? Then where did these weeds come from? He told them,
An enemy did this! The servants asked him, Do you want us to pull them
out? He said, No, if you pull out the weeds you might pull out the wheat
with them. Let them both grow together until the harvest and at harvest
time I will tell the reapers Gather the weeds rst and tie them in bundles for
burning but bring the wheat into my barn
Matthew 13:27-30

Managing a successful business has its rewards and challenges.

aisy Katathi* worked hard to


establish herself and her family
business.
Starting o as a housemaid, she and
her casual labourer husband Musyoka*
painstakingly saved every month. Finally,
after more than four years, they bought
a plot of land on which they built their
rst home.
Musyoka thereafter graduated from
casual labour to driving a matatu while
Katathi opened a milk parlour adjacent
to their house. The business venture took
o, allowing Musyoka to leave his job as a
driver to join his wife in the shop. Diversifying into trading cereals, Katathi and
Musyoka eventually joined the big leagues
and are now considered the leading business owners in their town.
In August last year, Katathi went for
a routine medical examination; it was
found that a growth in her ovaries was
cancerous. She was immediately put on
chemotherapy.
Sadly, the treatment did not work and
she has now been put on a more aggres-

Business reality
Leaders of family business should
recognise that it is not possible to
perpetually enjoy a harvest free of adversity.
When unpleasant circumstances accompany immense nancial gain form
investments these should be borne
with grace.
Business leaders who go through
unfortunate circumstances parallel to
bountiful harvests should not be made
to feel guilty for having invested well.

sive regimen. Relatives, family and friends


prayed for the best.
Samson Oketch* and his wife Siprosa*
were gifted a small transport business by
her parents when they got married.
Through prudent cost management and
investment, they grew the business venture
to the point where they are now prominent
transporters in Kakamega. In addition to

trucks, they also own a wholesale shop, several commercial and residential buildings.
Their monthly rental income is estimated
to be in the tens of millions.
Sadly, the Oketch children have never
taken o in spite of excellent upbringing,
consistent parental supervision all combined with a high cost education.
The rst-born, Darren* is a wellknown local philanderer cum drunkard.
Their second child, Wilfrida*, is, to put it
gently, a lady of questionable virtue who
seems addicted to unknown drugs. Only
the third born, Alfred* seems to show mild
potential; Samson and Siprosa wait for
him to complete his university studies
with bated breath.
Both these couples have reaped incredible nancial rewards from careful investment and have taken every measure to
ensure that they and their loved ones are
nancially secure.
Both have done all they can to live balanced, healthy lives and to bring up their
children to the best of their ability. Yet both
couples are faced with a traumatic present

and an uncertain future.


Some around them counsel them to
repent of their sins naming greed, bitterness and immorality as some of the vices
that could possibly have spawned these
conditions. While the couples fervently
seek divine intervention, none are aware
of any conscious wrongdoing.
Leaders of family business should
recognise that on this side of heaven
there is no such thing as a perfect harvest
one in which only good seeds grow to
maturity and where no unpleasantness
interferes with the return from diligent
investment.
No matter how well leaders balance
seed and harvest from investment, there
always are painful factors to deal with
physically, emotionally or spiritually. These
must be taken along with good outcomes
as a reality of being mortal.
No matter how wisely and strategically
family business invests it is not humanly
possible to rene harvests from investment
to the extent where one continuously enjoys benets without discomfort, pain or
loss. Runs of perpetual good fortune do
not exist.
Even those leaders of family business
who meticulously invest for themselves
and future generations are occasionally
disappointed by the outcomes of their ventures or ospring. They must learn to take
these unpleasant developments stoically
even as they celebrate positive results.
Not all unpleasant circumstances are
necessarily signs, as some believe, that the
family business amassed wealth through
unscrupulous means. They may just be
divine interventions that demonstrate
that all human beings are equal and vulnerable to the same sets of laws regarding
the harvest.
Mr Mutua is a Humphrey Fellow and a
leadership development consultant focused
on family businesses. His email address is
p.m.mutua@googlemail.com.

How publishing thives on social media platfoms

he conversation about how


social media is changing publishing has been going on since
the dawn of the platform. Ten years
ago, prognosticators were sure social
networks would usher in a new era
for publishing. Five years later, social
media spelled doom for the industry
as a whole.
Yet, instead of transforming publishing into a mass of niche blogs and
feeds or bringing about the end of the
business, social media has become a
set sophisticated tools for matching
content to reader interests, growing
communities and building brands.

. Matching content to interests


It is tempting to think of social
media as a generic channel for
broadcasting to the world. In actual-

ity, social media enables the formation


and maintenance of an almost limitless number of smaller communities,
each organised around a relatively
narrow theme. It empowers publishers by enabling them to market relevant content to these communities
more eectively.
Instead of relying on a single frontpage spread, for example, traditional
publishers can tune their content for
several dierent Twitter streams. By
sharing the right content to thoughtfully selected audiences, publishers
can pique their followers interest and
increase trac.

. Social means community


Another common misconception about social media is measuring the impact only by generated

vibrant and engaging online community. It is this community that will do


the sharing that is critical to success.
Each social channel, from Facebook and Tumblr to Pinterest, has
its own style of engagement. By optimising content that best ts the community on each channel, a publisher
can keep readers talking and engaging with content and drawing more
attention.

Social media publishing helps rms to


build brands and customer loyalty.
trac. A great social media strategy
certainly includes getting more visits,
but the goal has to be about creating a

. A great brand requires great


social
You cannot measure the eectiveness of a brand with a simple costper-click metric, and you cant easily
evaluate your social media community
this way either. But brands increase
reader loyalty, enhance the ecacy
of acquisition strategies and keep

customers coming back for more.


Publishers can leverage social tools
to strengthen their brands and increase awareness; this requires consistent messaging and engagement
with readers and viewers wherever
they may be exactly what is now possible with social media.

. Another tool in your toolbox


Has the death knell been rung
for publishing? Far from it. The
best distribution channel on the web
is still more porous than the content
it carries. Social media has led to signicant consolidation and increased
competition for eyeballs.
Publishers may no longer own both
content and distribution, but content
is still what matters.
- ENTREPRENEUR

30

BUSINESS DAILY | Tuesday April 28, 2015

Life: Enterprise

Fuits of devolution
evident in govenos
Kisumu confeence

Kisumu governor Jack Ranguma waves to delegates at Tom Mboya Labour College last week.
TONNY OMONDI

MARKET TALK
BONIFACE NGAHU

he devolution conference in Kisumu


last week brought to light the many
fruits of devolution.
First was the number of stakeholders involved from governors, central and county
government ocials. Their huge numbers
put the accommodation and conferencing
abilities of the city to a test. It was said the
city didnt have enough accommodation
for the guests and some had to seek accommodation in other towns such as Bondo.
In terms of conferencing someone mentioned to me that air conditioned tents

were brought in from Mombasa.


Business in Kisumu was booming catering
for the needs of the guests. Those in the tourism industry were some of the major beneciaries. Hotels, restaurants, car hire companies,
Lake Victoria beaches, sh market, Impala
Sanctuary and bars are some of the players
who cashed in on the event as well as other
businesses. There was a report that at some
point the whole town run out of conference
badge pins a good indicator of the scale of
opportunities. This also makes the conference
a hustlers paradise that needs to be watched
by opportunistic investors every year.
Another factor that seems to have been
in play was the festive mood in the city. The
mood was all over the place with most pictures indicating happy and smiling faces.
When people are in such a mood they are
normally willing to spend more which has a

multiplier eect on the economy. The mood


is also a good signature of African hospitality
which signies a good destination for visitors.
The conference also seemed to mark a tipping
point for the third largest city as it helped it
to reclaim its lost glory.
In terms of the content, all the key speakers were bullish about devolution. From the
speeches it can be concluded that the model
is delivering results for Kenyans in the grassroots. The Opposition, government, and envoys were united in the opinion that devolution is working and can only get better.
The devolution supplements in the daily
newspapers also highlighted some great
initiatives by county governments aimed at
improving the peoples livelihoods including infrastructure, agriculture, education and
health projects.
Another event around the conference
was the launch of the National Youth Service (NYS) slum upgrade initiative by President
Uhuru Kenyatta in Kisumu. The programme
which has uplifted dignity and livelihood of
the slum dwellers in Nairobis Kibera slums
was highly welcomed by the Kisumu County
governor Jack Ranguma and the youth. In
the programme the NYS is expected to work
with about 4,000 local youths in building infrastructure in Kisumus the slum areas. The
President advised the youths to spend the
money earned wisely and not to waste it on
alcohol or marrying second wives.
Something of concern was the picture
of the governors that is exclusively male. I
thought that the county voters should vote for
some women governors in future to change
the look and feel of the Council of Governors
which shouldnt be like a bull dance. Market
Talk has in many occasions highlighted the
impact of having women in top positions with
improvement in governance being one of the
many benets. It is said that the voters may
have been misled to believe that since every
county has a woman representative, therefore, the governor and Senate positions are
meant for men. Still, could it be possible that
a man can be voted as a county women representative as far as he is a father of girls?
As we celebrate the fruits of devolution
we should also congratulate the Cabinet secretary Ann Waiguru for the great job she has
been doing.
The writer is the marketing director of SBO
Research. E-mail: bngahu@sboresearch.c
o.ke, Twitter: @bngahu.

TIMES 25,051

Mixed eactions to pesidents populist gestue


A woman who bashed President
Nicolas Maduro (right) on the head
with a mango has been promised a
new house for her troubles in a surreal tropical tale that has gone viral
in Venezuela.
The 52-year-old president was driving a bus through a crowd last weekend in the central state of Aragua
when someone in the crowd tossed the fruit at
him. It says: If you can, call me, the former bus
driver said later during the week, as he displayed
the fruit with a name and phone number scrawled
on it on television.
Marleny Olivo had a problem with her house. (Of-

cials) called her. She was scared.


She couldnt believe it was true. ...
Ive approved an apartment for you,
Marleny, as part of the Grand Venezuelan Housing Mission, he added,
vowing to eat the mango.
Venezuelas ever ebullient cybersphere did not miss a beat, with the
presidents populist gesture drawing admiration
and derision, plus plenty of jokes.
If for a mango they give you apartments, then
you know what to do: throw him a pineapple!
quipped Dolar Today, a website that quotes the
black market for dollars and is hated by Maduro.

F O R MA T
T U R N C O A T
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I N D I C A T I V E
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E A S T E R N
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N UMB E R

SUDOKU 240

TIMES CROSSWORD 24052


6

10

12

11

15

14

13
16

19

18

17

20
21

22

24

23

26

25

28

27

Across
1 Bears appetite (7)
5 Share expenses with some Europeans
after game (2,5)
9 Known to very few, the knack of
sleeping well? (3,6)
10 Its emphatically uttered through
part of ones mouth (2,3)
11 Do talk English in the centre (5)
12 Acting so violently when capturing
one belligerent (9)
13 Strong poker hand confronted with a
deadpan expression (8-5)
17 Unfortunately, not a richer man like
Getty or Rockefeller, say (5,8)
21 To a degree, cultivate old fruit in
Mexico (9)
24 Run into parents in European city (5)
25 Henry and one of his queens turned
to hair colouring (5)
26 This is not out of order for a religious
Oriental (9)
27 Second speaker who follows a
celebrity? (7)
28 Animated production of Pygmalion
(7)

Down
1 Staff accommodating husbands
funny routine (6)

2 Tyrants awful prose repeated


endlessly (9)
3 One who encourages a nondrinker to
split a drink (7)
4 Where Rosemary, for one, is in her
element (9)
5 Annoy minority area, removing
hospital (3,2)
6 Ask questions after operation re bed
if poorly (7)
7 Steaming with limited room to
manoeuvre (5)
8 Serious crime one group of police
discovered in house (8)
14 Breaking new ground can be so
stressful (9)
15 Constable, say, supporting part of
case against swindler (3,6)
16 Suddenly grasps short musical
pieces (8)
18 Horse on a racecourse, one holding
up Derby, perhaps (3,4)
19 Senate building or temple in Rome
(7)
20 Aid to meditation used by shaman
traditionally (6)
22 Godsend married woman needed (5)
23 Laboratory apparatus some expert
researchers initially put together (5)

SUDOKU PUZZLE

241

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

Tuesday April 28, 2015 | BUSINESS DAILY

TALENT Future bright for Belgian winger whose prowess in the eld charms Chelsea fans

Eden Hazads sta shines with


PFA Playe of the Yea honou
C
helsea believe Eden Hazard is the third
best performer in world football so it was
little surprise the Belgium winger was
voted the Professional Footballers Association
(PFA) Player of the Year.
According to his club manager Jose Mourinho, only World Player of the Year Cristiano
Ronaldo of Real Madrid and Barcelona great
Lionel Messi are in better form than the 24year-old Hazard.
To the fans of Premier League championselect Chelsea, their No.10 is the modern-day
equivalent of the much-loved Gianfranco Zola
in both style and substance.
Hes a kid but he knows that he is one of
the three best players in the world, he is coping with that responsibility, Mourinho told
reporters recently.
Ive had lots of stars. Hopefully in every
club Ive worked Ive had stars but he is the
humble star.
The diminutive Zola charmed supporters
up and down the land with his twinkle-toed
trickery and endearing humility during the
Italians seven years at Stamford Bridge between 1996-2003.
One opposition defender described the moment that Zola left him with twisted blood, so
good was his dazzling footwork, and the same
can now be said for the quicksilver Hazard.
Such is his importance to Chelsea that Mourinho took the 5-foot-8 (1.73-metre) Belgian to
one side before last weeks 1-0 home victory over
Manchester United to tell him that he was his
sides potential match-winner -- and he duly
obliged with the only goal of the game.
Physically, mentally hes getting very, very
strong, said Mourinho. He understands his
role.
He understands clearly that especially in
a moment where the team doesnt have all its
power, he understands when the game becomes
strategic. He understands his talent is fundamental for the team.

Chelseas midelder Eden Hazard on his way to scoring their sixth goal of the UEFA Champions League,
Group G, football match between Chelsea and Maribor at Stamford Bridge in London on October 21. AFP

It was third time lucky for Hazard on Sunday because he was also on the shortlists for the
main prize and the PFA Young Player of the Year
awards in each of the previous two seasons.
He was also runner-up for the young player
award on Sunday behind Tottenham Hotspurs
Harry Kane.
Hazard becomes the second Chelsea player
to win the PFA vote, after captain John Terry
in 2005, and his team mates are in no doubt as
to his value to the side.
Eden is a quality player and he has the qualities to play even better, said hard-man defender
Branislav Ivanovic earlier this year.
Its hard to say how close he is to Messi...
but for us at Chelsea he is like Messi is for Barcelona.
The Londoners started the campaign play-

ing silky, owing football as they sought glory


in four dierent competitions.
The sheer grind of playing three games
a week all season has led to inevitable tiredness creeping into their performances in recent weeks but Hazard has been consistency
personied.
Im playing my best season ever, he said.
With my experience, I succeed in managing the
strong and weak moments in a game better.
Last year I played a good season but I disappeared in some games. This season I cant
really remember a game where I really wasnt
into it.
Its impossible to be on top form in 40 or 50
games in a season but Ive been the best player
in the team several times, said Hazard.
- REUTERS

Masaku Sevens set fo


June 27 as Zuku TV
wins boadcast ights
BY KOOME KAZUNGU

he 2015 Masaku Sevens will kick o with


a pre-tournament for emerging teams
during the weekend of June 27-28 before
the main event set for June 30 to July 5.
Primary schools will savour the refurbished
Kenyatta Stadium on June 30, with secondary
schools and colleges having their clashes on
July 1-2, paving the way for the three-day main
event that will end on July 5.
Machakos County government has installed
closed-circuit television cameras and beefed up
security ahead of the event.
I want to tell participants that Machakos
is safe and we are leaving nothing to chance ,
there will patrols randomly and heavy security,
says executive for Tourism Culture and Sports,
Faith Wathome.
International teams set to grace the event include Spains Bera Bera Rugby Taldea, the Boyne
Rugby Club from Ireland, Scotlands Edinburg
Accies, Club de Pueyrredon of Argentina, and
Tabusoro Angels Ladies Team from Norway
while France will be represented by the Froggies Sevens rugby team. Oslo Rugby club will
participate alongside the Tabusoro while Fiji
will be represented by Uprising Rugby Club.
The Masaku Sevens has attracted the interest
of Zuku that has been awarded the broadcasting rights for the tournament.
Zuku will this year invest $1.5 million
(Sh140.9 million) in delivering 50 per cent local content.
We are fully behind supporting rugby this
year we will be changing our gear from international sports to more local content as we set our
sights on injecting more money back in Kenya,
says Zuku TV director Mandy Rodgers.
The company has partnered with Kenya
Rugby Union in a deal that will see Zuku broadcast 20 to 30 rugby games this year.
During last years edition, Tabadamu from
Fiji took the top honours winning Sh1 million
after emerging the overall champions of the
rugby event.
Masaku Sevens raked in Sh200 million last
year with supermarkets hitting a three-month
target in one weekend of the rugby event.

SPORTS BRIEFING
Barcelona to keep eye on ball
in La Liga title race despite win
Barcelona coach Luis Enrique has
stressed his side wont take their eye off
the ball despite having a comfortable
run-in to the end of the La Liga season as
they chase a fth title in seven years.
A 2-0 win over local rivals Espanyol on
Saturday ensured Barca maintained a
two-point lead over Real Madrid at the
top of the table with just ve games remaining. However, whilst Real have to
face Champions League-chasing Sevilla
and Valencia in the coming weeks, four
of Barcas last ve games come against

sides in the bottom half of the table,


starting with the visit of Getafe today.
Whether the run-in is easier or not is in
theory, but you need to show that on the
eld, said Enrique.
Who would have thought we would take
one point from two games against Malaga? We will continue to approach all the
games until the end of the season in the
same way.
Lionel Messi and Neymar both scored
as Barcelona moved ve points clear in
Spains La Liga title race at the weekend,
despite having a player sent off in the
Catalan derby at Espanyol.

Chelsea plans to play friendly


match against Sydney in June

Barcelona coach Luis Enrique. AFP

Chelsea will play a friendly against Sydney


FC in June on their rst visit to Australia
in 50 years, with many of their top players making the trip, the A-League club
said yesterday. The match, at Sydneys
83,000-capacity Olympic Stadium on June
2, comes just days after the end of the
English Premier League season. Chelsea
are currently 10 points clear at the top of
the table with ve games left. Sydney FC
remain in the hunt for a third A-League
crown and will play in a home nal in next
months playoffs. Australia is uncharted

territory for the modern Chelsea, and I


cant wait to see our many fans there as
we show our appreciation for their longdistance support of the club, Chelsea
chairman Bruce Buck said in a statement.
Many of the teams big names will take
part, including John Terry, Didier Drogba,
Diego Costa and Cesc Fabregas. The game
will be Chelseas only match in Australia
and will be played just days after Sydney
meet Tottenham Hotspur at the same venue on May 30. Chelseas match extends
a busy off-season schedule of European
giants playing in Australia including Manchester City and Real Madrid.

31

32

BUSINESS DAILY | Tuesday April 28, 2015

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MARKET CAP IN SH BN

Five die in Burundi protests

Benin president wont vie


Benin President Thomas Boni Yayi has
promised to leave power when his
mandate expires next year as crowds
across the cotton producer voted in
legislative elections.
Gains for Boni Yayis opponents could
complicate his plans to undertake
the constitutional reform that his
government says is needed to ght graft
and guarantee the electoral process.

Nepalis ee capital city


Thousands of Nepalis began eeing
the capital Kathmanduyesterday,
terror-stricken by two days of powerful
aftershocks and fearing shortages of
food and water after an earthquake that
killed more than 3,200 people.
Roads leading out of the mountain valley
city of one million were jammed with
people, many with babies in their arms,
trying to climb onto buses or hitch a ride
aboard cars and trucks.

Health
NEWS

said late on Sunday. The southern


Bamako government and another
coalition of pro-government armed
groups accepted the proposal in early
March, but the Tuareg coalition refused
after consultations with its supporters in
northern Mali.

demonstrating and tires being burned.


Protesters say President Pierre
Nkurunziza broke the constitution and
the Arusha peace agreement, which
limits the president to two ve-year
terms, by saying on Saturday he would
run again in the June 26 vote.

Protesters took to the streets in Burundi


for a second dayyesterday after activists
said at least ve people were killed
in unrest a day earlier triggered by
the presidents plan to run for a third
term, a move critics say violates the
constitution. The ght continues,
protesters chanted in the Musaga
district of the capital Bujumbura. A
Reuters witness saw about 200 people

Togo elections peaceful


Opponents allege a secret bid to scrap
term limits so the president can run for a
third term from 2016.

Mali rebels to sign deal


Rebels from north Mali told mediators
they will initial a long-delayed UNbrokered peace proposal on the future
of Malis north next month, a spokesman
for the lead northern separatist group

Yemen ghting escalates

Clinton Foundation tax errors

Air raids, naval shelling and ground


ghting shook Yemen on Sunday in
some of the most widespread combat
since a Saudi-led alliance intervened
last month against Iranian-allied Houthi
militia who have seized large tracts of
the country. There were at least ve air
strikes on military positions and an area
near the presidential palace compound
in the Houthi-held capital Sanaa at dawn
on Sunday, while warships pounded an
area near the port of the southern city of
Aden, residents said.
The explosions were so big they shook
the house, waking us and our kids up.
Life has really become unbearable in
this city, a Sanaa resident who gave his
name as Jamal told Reuters.

The Clinton Foundations acting chief


executive admitted that the charity
had made mistakes on how it listed
government donors on its tax returns
and said it was working to make sure
it does not happen in the future.
The non-prot foundation and its list
of donors have been under intense
scrutiny in recent weeks. Republican
critics say the foundation makes
Hillary Clinton, who is seeking the

Togos presidential election took place


without major incidents, although
turnout appears to have been just over
50 per cent, West African and local
election observers said on Sunday.
No results have yet been published, but
incumbent Faure Gnassingbe is widely
expected to win a third term. The vote on
Saturday pitted Gnassingbe against four
challengers, led by Jean-Pierre Fabre.

TOTAL SHARES TRADED


EQUITY TURNOVER IN SH
BONDS TURNOVER

PREVIOUS

2,400.44

2,413.11

11,002,000

28,251,300

409,868,034

898,435,655

1,055,750,000

593,100,000

TOTAL DEALS (BONDS)

15

15

TOTAL DEALS (EQUITY)

1,681

1,732

5,056.27

5,061.09

NSE 20 SHARE INDEX


NSE ALL SHARE INDEX

171.59

172.55

FTSE NSE KENYA 15 INDEX

229.51

229.51

FTSE NSE KENYA 25 INDEX

229.67

229.67

FTSE NSE KENYA BOND INDEX

92.71

92.43

FTSE ASEA PAN AFRICAN INDEX 1,235.73

1,235.57

HE SAID
We are what
we repeatedly
do. Excellence,
then, is not an
act but a habit.

- John Gardner
American novelist & essayist
(19331982)

Democratic presidential nomination in


2016, vulnerable to undue inuence.

Violence rocks Baltimore


Baltimores mayor and police again
blamed outside agitators for violence
and vandalism that ared during a
mostly peaceful protest over last
weeks death of a young black man
who sustained an unexplained spinal
injury while under arrest.
A day after thousands of
demonstrators marched through
the city demanding justice in the
investigation into the April 19 death
of Freddie Gray, 25, Mayor Stephanie
Rawlings-Blake condemned the
lawlessness that erupted on Saturday.

No life-saving surgery for billions

Niger schools shut over meningitis

Ebola drug cures infected monkeys

Two-thirds of the worlds population have


no access to safe and affordable surgery,
according to a new study in The Lancet
more than double the number in previous estimates. It means millions of people
are dying from treatable conditions such
as appendicitis and obstructed labour.
Most live in low and middle-income countries.

All schools in and around Nigers capital, Niamey, have been shut because of
a meningitis outbreak that has killed 85
people this year. A shortage of vaccines
has caused the outbreak to spread, the
authorities say. A campaign to vaccinate
all children between two and 15 will begin
on Friday, but only half of the 1.2m doses
needed are currently available.

An experimental drug has cured monkeys


infected with the Ebola virus, US-based
scientists have said. The treatment,
known as TKM-Ebola-Guinea, targets the
Makona strain of the virus, which caused
the current deadly outbreak in West Africa. All three monkeys receiving the treatment were healthy when the trial ended
after 28 days.

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

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

Nairobi: 3-day forecast


Tue
Wed
Thu

Mostly Sunny
Mostly Sunny
Mostly Sunny

High

Low

25C

14C

25C

14C

24C

16C