Business daily apr 7th 2015 by HABA KWA HABA

Garissa Aftermath Ideas & Debate

Kenya gripped by presence of local terrorists

Use school and college alumni to boost growth

Life

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TUESDAY, APRIL 7, 2015

NO. 2068

Seven steps to climb the success ladder

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B≥itish companies ship out Sh25bn in 2014 dividends Earnings increase despite frosty diplomatic ties made worse by travel warnings, army training deal

BY CHARLES MWANIKI

British companies booked nearly Sh25 billion in dividend and fee payouts from Kenyan associates in 2014, even as the two countries continue to manage delicate diplomatic relations made diﬃcult by 2013’s ascension to power of President Uhuru Kenyatta while facing trial at the International Criminal Court (ICC). The huge earnings by the UK ﬁrms, which retain a sizeable grip on the Kenyan economy, have also come despite

the steady fall in trade between the two countries. Kenyan imports from her former colonial master in 2014 fell to the lowest level in seven years to Sh47 billion from Sh49 billion in 2013, according to data from the Kenya National Bureau of Statistics. The volume of Kenyan exports to the UK also dropped for the third year in a row, standing at Sh35.3 billion in 2014 from Sh37.1 billion a year earlier. Britain’s trading fortunes have continued to decline as Kenya pursues

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a ‘look east’ policy that began under former President Mwai Kibaki with India, China, and Japan as the main beneﬁciaries. Tellingly, Mr Kenyatta is yet to visit London on an oﬃcial engagement with the UK since coming to power two years ago. His two visits to the UK in 2013 and 2014 were to attend a conference on Somalia and to support First lady Margaret Kenyatta in the London Marathon respectively. UK investors in Kenya have, however, had no reason to DIVIDENDS, Page 4»

Top British investor earnings in dividends from listed Kenyan companies (Sh Bn) The British multinationals saw their earnings in dividends from Kenyan listed firms grow by 28 per cent last year, following improved financial performances by the firms. Company

2012

2013

2014

Vodafone Group (Safaricom)

5.37

7.36

10.44

Standard Chartered Plc

2.85

3.31

3.88

Barclays Plc

3.72

2.60

3.72

BAT UK

1.95

2.22

2.55

Diageo (EABL)

3.46

2.17

Helios (Equity Bank)

1.13

1.35

1.62

18.48

19.01

24.38

Sub-total

SOURCE: COMPANY FILINGS

Ponzi scheme fells B≥itam owne≥’s Mau≥itius bank BY VICTOR JUMA

A Mauritian bank associated with Britam’s director and top shareholder Dawood Rawat has lost its licence after it was found to have been running a Ponzi scheme. Bramer Banking Corporation (BBCL), which is part of Mr Rawat’s Seaton Investment conglomerate, had its licence revoked by the Bank of Mauritius last Thursday. The decision was linked to a $693 million (Sh63.7 billion) Ponzi scheme whose discovery led to a run on the bank, leading to a serious liquidity crisis. “The Bank of Mauritius has appointed PricewaterhouseCoopers (PwC) as receivers for BBCL,”

NEWS INDEPTH

Some of the Kenyans who turned up at KenCom bus terminus yesterday to donate blood to assist victims of the Garissa University College terrorist attack. DIANA NGILA

Pages 12-13 »

Reuters news agency reported the Prime Minister of Mauritius Anerood Jugnauth as having announced on Friday. “We had to act rapidly because we are in (the) presence of a Ponzi BANK, Page 4»

China ﬁrm buys Sh6.4bn stake in Centum project Centum Investment’s Two Rivers Development has attracted Sh14.3 billion in new funding, including one of the biggest equity investments in a local company by a Chinese Page 7» ﬁrm.

BRIEFING

NAIROBI

Anxiety as trafﬁc decongestion plan in Nairobi faces major test

Mr Dawood Rawat , Group Chairman Britam. FILE

BUSINESS DAILY | Tuesday April 7, 2015

TOP NEWS

B≥itish companies ship out Sh25bn in 2014 dividends complain as far as doing business with East Africa’s largest economy is concerned. In fact, the UK has maintained its stranglehold on the Kenyan economy with the presence of some of its biggest companies in key sectors. British companies Vodafone, Diageo, Barclays, BAT, Standard Chartered and private equity firm Helios hold significant stakes in some of the biggest companies listed at the Nairobi Securities Exchange (NSE), placing them in pole positions when it comes to the sharing of dividends. The 2014’s Sh24.6 billion dividend payout to UK companies represents a 28 per cent increase on the Sh19 billion they shipped out in the 2013 financial year.

»From Page 1

More than half Besides, the 2014 payout was more than half of the total Sh45 billion dividends and fees paid out by the 12 companies with majority British ownership at the NSE. Vodafone Group, whose earnings from dividends and M-Pesa fees from Safaricom surpassed Sh10 billion for the year ending March 2014, topped the list of ﬁrms that were rewarded handsomely. Vodafone earned Sh7.5 billion in dividends for its 40 per cent stake in Safaricom, plus an estimated Sh2.9 billion in M-Pesa fees. The UK company earned a combined Sh7.3 billion in 2013 from dividends and fees. The increase in Voda-

Payout windfall deﬁes f≥osty UK, Kenya ties

fone’s 2014 take-home came from the rise in Safaricom’s dividend payout to Sh0.47 a share (compared to 2013’s Sh0.31) and the rise in Safaricom’s M-Pesa revenue from Sh21.8 billion in 2013 to Sh26.56 billion in the year ending March 2014.

M-Pesa platform Vodafone Sales and Services Ltd (VSSL) owns proprietary rights over the M-Pesa platform and earns royalties accrued from use of the mobile money transfer solution. The fee is estimated at 11 per cent of total MPesa revenues. Standard Chartered Plc is next on the dividend windfall list with its Sh3.88 billion earnings from the 73.89 per cent stake in the Kenyan unit following the announcement of a Sh17 per share dividend last week. The company earned a Sh3.3 billion in dividend in 2013. Barclays Plc, which holds a 68.5 per cent stake in Barclays Kenya, is taking home Sh3.72 billion for the 2014 ﬁnancial year from Sh2.6 billion in 2013 after a 30 cents rise in dividend paid per share to Sh1.

BAT Kenya British American Tobacco Plc has earned Sh2.55 billion in dividends from its 60 per cent holding of BAT Kenya’s 100 million issued shares. BAT Kenya has continued its policy of paying out its entire earnings as dividends, with the 2014 payout per share hitting a record Sh42.50 from the Sh37

British ﬁrm Vodafone, which owns proprietary rights over M-Pesa, was among the top 2014 dividend earners. FILE paid out in 2013. BAT and StanChart are seen as mature companies that are unlikely to lower their high dividend payouts, promising a possible rise in future earnings for shareholders with growth in proﬁts. EABL’s majority shareholder Diageo’s dividend earnings remain unchanged at Sh2.1 billion, following the company’s decision to maintain its dividend payout at Sh5.50 a share. Diageo, the world’s largest producer of spirits, has a 50.03 per cent stake in EABL. UK-based PE fund Helios earned Sh1.62 billion from its 24.44 per cent stake in Equity Bank, which paid out a dividend of Sh1.80 a share in 2014. This was an increase of Sh300 million from the Sh1.3 billion earned in 2013. Helios is, however, set to earn less dividends going forward after it sold half of its stake in Equity to a consortium led by Norwegian sovereign fund Norfund. In the agriculture sector, UK

investors retain signiﬁcant stakes in Kakuzi, Limuru Tea, Williamson Tea, Rea Vipingo and Kapchorua. The Williamson family of Britain has a 51.46 per cent majority stake in Williamson Tea and a further 23.96 per cent shareholding in Kapchorua Tea through their investment vehicle Ngong Tea Holdings. These holdings earned the family Sh36.2 million in dividends in 2014 after Williamson Tea and Kapchorua announced dividends of Sh7 and Sh5 respectively. The family earned Sh40.7 million in 2013 from both ﬁrms. Camellia plc of England, which owns 50.7 per cent of Kakuzi through Bordure Ltd and Lintak Investments, earned Sh37.2 million out of an unchanged dividend of Sh3.75 a share. British multinational, Unilever Tea, earned Sh4.68 from a dividend payout of Sh7.50 per share paid by Limuru Tea, where it holds a 52 per cent stake. cmwaniki@ke.nationmedia.com

Kenya’s diplomatic relations with the United Kingdom have in the past two weeks been rattled by travel advisories and the uncertainty surrounding the 40-year-old British army training deal. President Uhuru Kenyatta has berated the UK and other Western nations for issuing advisories that he says do not reflect the real situation in Kenya thereby hurting the East African nation’s key tourism sector. The UK remains Kenya’s biggest tourist source market. The Kenyan government has refused to sign a new deal with the UK that allows British soldiers to train in northern Kenya every year unless London agrees to subject its soldiers who commit crimes in Kenya to face justice in local courts. “These are tough negotiations and there will be no backing down by Kenya on this issue. Kenya is not the same country as when these agreements were signed,” presidential spokesman Manoah Esipisu told British newspaper Mail on Sunday. It has now become clear that the frosty diplomatic relations are affecting Kenya’s co-operation with its international partners in key areas such as intelligence sharing. Mr Kenyatta last week dismissed the UK’s upgrading of its travel advisory warning its citizens against travelling to the Kenyan coast and the vicinity of the Somalia border, saying that the advisories were based on untrue information about Kenya’s security situation. On Wednesday, just a day before the Thursday terrorist attack on the Garissa University College, Mr Kenyatta dismissed London’s advisories as meant to prevent UK’s taxi drivers from travelling to Kenya even as he foisted US President Barack Obama’s planned July visit as a mark of confidence in the country’s security. -CHARLES MWANIKI

Ponzi scheme fells top B≥itam owne≥’s Mau≥itius bank scheme of about 25 billion rupees ($693 million),” he added without giving further details. A Ponzi is a scam where investors are promised or paid unrealistic returns from cash paid in by new members, necessitating an endless recruitment drive that eventually proves unsustainable. The development is expected to shake Mr Rawat’s business empire, which only recently tried to raise Rs350 million (Sh885.5 million) from British American Investment Co (Mtius) to save the bank. “On March 31, BAI Co (Mtius) had, by way of a letter copied to the bank informed BBCL of its willingness to invest Rs350 million in BBCL subject to all regulatory, corporate and »From Page 1

Britam top shareholders Mr Dawood Rawat is also a director of the company Investor Dawood Rawat

Stake (%) 20.3

Peter Munga

16.99

Jimah Mbaru

10.28

Jane Michuki

9.27

James Mwangi

5.37

Benson Wairegi

5.17 SOURCE: COMPANY REPORTS

shareholder’ approvals,” the Bank of Mauritius said in a statement. The Bank of Mauritius, which regulates the Island nation’s banks, also noted that an article appearing in the

press in Mauritius on April 4 had alleged that Mr Rawat had taken steps to transfer Rs1.4 billion (Sh3.5 billion) from Kenya to the troubled bank. The central bank, however, said that such a commitment was never communicated to it. “At no time did BBCL or Mr Rawat, for that matter, signify its or his intention to bring in Rs1.4 billion as alleged in the article,” the central bank said. The Mauritian is the single largest investor in Britam, which is listed on the Nairobi Securities Exchange (NSE). His interest in the ﬁnancial services company, held through two investment vehicles, stands at 20.3 per cent. He is followed by ﬁve Kenyan billionaire investors, who are his long-

term co-investors in the ﬁrm including Peter Munga and Jimnah Mbaru who have 16.9 per cent and 10.2 per cent stakes respectively. Ms Jane Michuki has a 9.2 per cent interest while Equity Bank’s CEO James Mwangi owns a 5.3 per cent stake. Britam’s chief executive Benson Wairegi holds a 5.1 per cent equity in the company. Besides his shareholding, Mr Rawat has in recent years moved to ﬁrm his grip on Britam through his own directorship and that of his allies. He joined Britam’s board in late 2013 alongside his nephew Moussa Rawat as part of changes in directorships across his conglomerate. Mr Rawat was forced to cede a third of his stake in Britam to local inves-

tors in 1984 to comply with a government directive that Kenyans needed to have significant ownership in the company. Then, at the height of President Moi’s era, Britam was only dealing in insurance but has now expanded with well-established property and asset management divisions. In 2006, Kenyan investors acquired an additional 30 per cent stake from BAI. It’s not clear at what stage the current local shareholders, led by Mr Munga acquired stakes in the financial services firm. Despite the twin dilutions, Mr Rawat has remained the single largest shareholder in the company with a stake valued at Sh10 billion. vjuma@ke.nationmedia.com

Tuesday April 7, 2015 | BUSINESS DAILY

ECONOMY & POLITICS NEWS I REVIEWS I ANALYSIS

Kenyans texting mo≥e, talking less on phone GROWTH The numbers of SMSs rose to

7.3bn messages in the period to December billion minutes recorded in the last quarter to 6.4 billion minutes posted Kenyans are talking less and texting during the quarter under review,” CA more on their mobile phones, the latest said in the report. statistics by the regulator indicates. Traffic to other mobile networks The Communications also decreased by 10 per Authority of Kenya (CA) cent to stand at 936 milsays in a report that on averlion during the quarter unage mobile phone subscribder review down from 1.0 The g≥owth er called for 73.3 minutes billion minutes registered per month in the quarter in SMS t≥affic previously. to December, down from could have been The reports also shows that majority of mobile sub84.1 minutes in the same as a ≥esult of scribers still prefer to call period last year and 85.6 minutes in three months the high festive within their networks, deseason spite the calling rates to rival to September. The number of short text operators having dropped CA messages (SMS) increased to almost the same as within to 7.3 billion in the period to network costs. December, up from 6.3 billion sent in The average calling rates stand at the same quarter in 2013 and 6.96 bil- Sh4 per minute and Sh1 for sending lion in three months to September. messages. “The decline in total traffic was par“The growth in SMS traffic could tially contributed by on-net traffic that have been as a result of the high festive dropped by 7.6 per cent down from 6.9 season which saw relatives and friends BY OKUTTAH MARK

CA data shows that Kenyans are talking less and texting more on their mobile phones. FILE exchange appreciation and well wish messages,” CA said in the report. Just like in the voice business, Safaricom maintained a tight grip on the SMS market. Safaricom SMS market share increased to 96.4 per cent in December from 95.8 per cent in September while Airtel stake reduced to 2.6 per cent from 5.5 per cent Orange’s volume of SMS grew to 72 million messages up from 40 million messages posted during the last quar-

ter, earning it an 0.9 per cent stake in December, up from 0.6 per cent in September. “This exponential growth in the number of messages sent from the Orange network was mainly contributed by on-net SMS and could be attributed to the promotion carried out by the operator which allowed users to earn bonus recharge of one Kenya Shilling for every SMS sent,” the regulator said. The drop in consumers monthly

spend on airtime comes in a period when voice prices have remained unchanged. This is a pointer that consumers were shifting their budgets to other items given that the number of mobile phone subscribers increased to 33.6 million in December compared to 32.8 in September, pushing the mobile phone penetration to 82.6 per cent of the population, 80 per cent in the period under review. Airtime has become a basic item just like food and utilities and it use has always comes under pressure when the cost of other basic items are on the rise. But the drop in talk time comes in a period when the cost of basic items including food items, electricity bills and fuel has been falling. A litre of petrol is retailing at Sh105 compared to Sh114 a year ago with a two kilogramme packet of maize ﬂour down at Sh94 down from Sh113.55 in March last year, according to the Kenya National Bureau of Statistics. okuttah@ke.nationmediacom

BUSINESS DAILY | Tuesday April 7, 2015

ECONOMY & POLITICS

Uhu≥u to ≥eceive CBK gove≥no≥ list next week as inte≥views sta≥t PROCEDURE Public Service Commission says the meetings will be

closed to the public to enable it come up with the best candidates BY ALLAN ODHIAMBO

Three most preferred candidates to succeed Njuguna Ndung’u as Central Bank of Kenya (CBK) governor will be known later in the week as closed interviews start this morning. The Public Service Commission (PSC) will test five short-listed candidates for the position as it aims to fill the influential slot by May. Current deputy CBK deputy governor, Dr Haron Sirima, the Economic Affairs director at Treasury, Dr Geoffrey Ngungi Mwau and former Planning Permanent Secretary and one time CBK deputy governor Dr Edward Sambili are among those short-listed to replace Prof Ndung’u who stepped down on March 3 after serving the maximum of two four-year terms. Dr Patrick Ngugi Njoroge and Dr Peninah Wanjira Kariuki also made the cut and will battle it out with the three veterans. A PSC source said three top candidates will be known by Friday and their names submitted to President Uhuru Kenyatta by next Friday to pick his preferred candidate. His choice would need to be approved by the Parliament. This is the first time the central banker will be chosen through open competition. Previous chiefs were named by the president without a formal application process. Seven out of 10 economists polled by Reuters last month expect the top job to go to Dr Sirima with the analysts saying that he is seen as a safe

Dr Haron Sirima. According to a recent poll by Reuters, the deputy CBK governor is seen as a safe bet. FILE

choice who would maintain the bank’s policy on price and exchange rate stability. PSC will today also conduct interviews for the CBK chairman position which attracted eight applicants with only four making it to the shortlist. “It will be a closed door interview to give candidates the best environment to present their competences and for panelists to evaluate the best three candidates for each post,” PSC chairperson Prof Margaret Kobia told the Business Daily. Dr Benard Mbui Wagacha, who is the outgoing CBK chairman and doubling up as President Uhuru Kenyatta’s economic aﬀairs advisor made it to the shortlist of new CBK chairman alongside veteran lawyer Jairus Mohammed Nyaoga. Others in the race to become the

new CBK chairman are Dr Benson Akong’o Ateng’ who is the current chairman of Consolidated Bank of Kenya and Mr Nicholas Bartuiyot Korir who presently is on secondment to Comesa Monetary Institute from Kenya School of Monetary Studies which he headed. Interviews for CBK deputy governor are expected later this month after the PSC re-advertised the position after 42 applicants failed to impress the selection panel. Public servants, bankers and serving CBK employees have been barred from the race for the position of deputy governor. In the cancelled round of CBK deputy governor recruitment, among the 42 applicants were top CBK staﬀ including Ms Rose Detho (Director in charge of Strategic Management), Gerald Arita Nyaoma, (Director Financial Markets), Daniel Mwirigi (Deputy Director Research) and Nicholas Korir, formerly Director Policy Analysis, who is currently on secondment to Comesa Monetary Institute. Ms Sheila M’Mbijjewe, who formerly sat in the inﬂuential CBK Monetary Policy Committee (MPC), was also among the applicants. Chief executives of the Higher Education Loans Board (Helb) and Commission on Revenue Allocation (CRA), Charles Mutuma Ringera and George Ooko respectively, also sought the deputy governor’s job. aodhiambo@ke.nationmedia.com

Controller of Budget Agnes Odhiambo. FILE

Six counties defy budget chief by spending money befo≥e banking BY NEVILLE OTUKI

Six counties have continued to defy the Controller of Budget in spending cash raised from levies and rates before depositing the money in their main bank account. The Controller of Budget said Nairobi, Homa Bay, Machakos, Murang’a, Meru and Trans Nzoia failed to deposit cash raised from car parks, land rates and billboards in the authorised County Revenue Fund (CRF) before its use. The Constitution requires that all revenues generated be paid into the Fund before they are released for spending. This is in a bid to create accountability and ensure governments follow budgets. “The office established that these counties did not deposit all locally generated revenue into the CRF as required by the Constitution, buy instead spent the funds at source,” Controller of Budget Agnes Odhiambo said in the half-year review of the counties’ budget. This made it difficult for the budget chief to effectively monitor the expenditure of the counties, especially at onset of the spending. “Money shall not be withdrawn from a Revenue Fund unless the Controller of Budget has approved the withdrawal,” adds the supreme law.

As a result, the six counties reported higher expenditures than the amounts approved by the Controller of Budget. The issue of spending at source has severally been raised by the Controller of Budget Agnes Odhiambo, prompting her in last year’s third quarter report to ask that action be taken against counties for repeatedly ignoring the law.

Treasury The Public Finance Management Act allows the Treasury to temporarily withhold up to half of the share of a county’s cash from the national government for devolved units that breach the law. The report also noted that counties were doing badly in raising local revenues. In the six months to December, the 47 devolved units generated Sh13.1 billion or 21 per cent of the annual target. Only Elgeyo/Marakwet, Marsabit and West Pokot managed to raise half of their annual local revenue target in the period to December. Poor performers were Mombasa, Trans Nzoia and Tana River that raised 10.4 per cent, 9.3 per cent and 7.4 per cent of their annual local revenue target. This has seen governors continue to rely heavily on the national government transfers to settle their pressing obligations, especially wages.

Galana i≥≥igation scheme ≥eady fo≥ its ﬁ≥st planting this week BY GERALD ANDAE

The maiden planting at the one-millionacre Galana-Kulalu irrigation scheme is set to start this week, bringing the ambitious plan aimed at reducing food shortage in Kenya closer to reality. Israeli firm Green Arava, which won the Sh14 billion contract to develop the model farm, will be planting the first maize crop on 1,000 acres for a start. The model farm, which is estimated at 10, 000 acres, is being used as a demonstration block for developing the entire one million acres set for irrigation. “We have planned to start planting the first crop this week under the model farm, and we hope that the weather will be favourable for the exercise,” said the

project manager Richard Kanui. The exercise was supposed to start last week but was hampered by the rains that have been pounding the region recently. Mr Kanui told the Business Daily that the first maize crop from the scheme is expected in August as it will only take three months to mature and it will be processed on the farm. Already, the contractor has placed an order for a milling plant from South Africa to process maize flour. The model farm will guide the structure of the irrigation scheme. The plant, said Mr Kanui, comes with a dryer, making it easy to contain cases of afflatoxin that are common in the area given its humid condition.

Investor interest The Israeli ﬁrm Green Arava won the Sh14 billion contract to develop the model farm Green Arava expects a minimum of 80 bags of maize from an acre under good farming practices borrowed from Israel The Ministry of Agriculture is evaluating a list of 80 local and international investors who have sent in applications to lease land.

“This is a state-of-the-art milling plant that has the ability to package the ﬂour once it has been processed,” he said. He said that Green Arava was al-

ready designing the logo that will be used on the packaging material to market the products from the irrigation scheme. The Galana project is expected to cut Kenya’s reliance on rain-fed agriculture that is blamed for the perennial food shortage by employing technology to cut cost of food production. Green Arava expects a minimum of 80 bags of maize from an acre under good farming practices borrowed from Israel. The centre pivotequipment that is being used to irrigate crop has been installed on the farm. Noam Ftecha, the lead engineer with Green Arava, said the equipment can perform several tasks, including ap-

plying liquid fertiliser. The Sh260 billion Galana project is a public-private partnership in which the government will be providing infrastructural services with the investors expected to plant crops and set up processing plants. Foreign investors top the list of ﬁrms lined up for the project. The Ministry of Agriculture is evaluating a list of 80 local and international investors who have sent in applications to lease land at the scheme. The applicants include ﬁrms from Brazil, Australia and China which have expressed interest in deploying technology to boost food production. gandae@ke.nationmedia.com

Tuesday April 7, 2015 | BUSINESS DAILY

CORPORATE NEWS NEWS I REVIEWS I ANALYSIS

China ﬁ≥m buys Sh6.4bn stake in Centum p≥oject

ment Trusts (REITs) for Two Rivers and Pearl Marina, a similar project in Uganda, to allow equity investors exit. “The characteristics of the asset oﬀer an opportunity to design a REIT around it, in turn creating a long term dollar asset which is highly liquid and desirable for institutional investors,” says the report.

Scarcity of land

INVESTMENT Aviation Industry Corporation of China

and ICDC are among ﬁrms investing in Two Rivers mall BY JOHN GACHIRI

Centum Investment’s Two Rivers Development has attracted $155 million (Sh14.3 billion) in new funding, including one of the biggest equity investments in a local company by a Chinese ﬁrm. The listed ﬁrm has received the money for the mixed property development in the form of debt and equity. Centum said that Aviation Industry Corporation of China (Avic) had invested $70 million (Sh6.4 billion) in Two Rivers for a 38.9 per cent stake, valuing the project at about Sh16.6

billion. State-owned investment ﬁrm ICDC, which also has a 23 per cent stake in Centum, made a $5 million (Sh462.5 million) equity investment while Cooperative Bank contributed Sh7.2 billion in debt funding for the project. “The investment by Avic is particularly noteworthy being one of the largest foreign direct investments in this region by a Chinese corporation into a private enterprise,” Centum said in a statement. Besides the equity investment, Avic is also the main contractor for the Two Rivers project. The project is being put up on a 102 acre site along Limuru Road

An artist’s impression of the Two Rivers mall which is being built in Nairobi. COURTESY and will consist of a mall, a hotel, apartments and oﬃce blocks. South African hotelier City Lodge is putting up a three-star hotel on the property. The upcoming mall, billed as the largest in East and central Africa with a gross lettable area of 62,000 square metres, is set to open in October with French retailer Carrefour as the anchor tenant. Centum has, in recent years, raised billions of shillings for the Two Rivers and other projects it has under-

taken to diversify from stock market investments. In February 2013 the company raised Sh4.2 billion by issuing a corporate bond and recently opened talks with institutional investors with the aim of raising as much as Sh8 billion through another bond. Dyer and Blair Investment Bank and Equity Investment Bank are the joint transaction advisors for the bond. A presentation by Centum says that the ﬁrm plans to issue Real Estate Invest-

Two Rivers is expected to generate $25 million (Sh2.3 billion) in annual rental income, representing a yield of around 14 per cent in dollar terms. The ﬁrm has a Sh34.5 billion portfolio with real estate accounting for the lion’s share at Sh11.85 billion. Players in the property sector say that scarcity of land in urban areas, coupled with a growing middle class, is creating a strong market for mixed developments in Kenya. “Rapid population increases and urbanisation has led to insuﬃcient availability of land in urban areas and has added strain to services and infrastructure,” the Royal Institution of Chartered Surveyors said in a market report. jgachiri@ke.nationmedia.com

BUSINESS DAILY | Tuesday April 7, 2015

CORPORATE NEWS COUNTY BUSINESS

Telcom ﬁ≥ms cut investments in data, voice inf≥ast≥uctu≥e

Ke≥oche seeks dist≥ibuto≥s in counties afte≥ plant upg≥ade BY MUGAMBI MUTEGI

Operators spent Sh30bn in 2013, Sh3.5 bn less compared to the previous year UPGRADE

BY OKUTTAH MARK

Mobile operators have scaled back their investment in voice and data infrastructure despite a major increase in subscriber numbers, according to a latest sector report by the Communications Authority of Kenya (CA). The move could lead to congestion of the firms’ networks and further worsen their quality of service record. The regulator last year found Safaricom, Airtel and Telkom Kenya, which operates the Orange brand, to have substandard service. The report for the quarter ended December shows that the operators spent Sh30 billion in 2013 to establish and upgrade their voice networks, Sh3.5 billion less compared to the previous year. This is the second consecutive cutback in the capital-intensive sector, a move that could either signal cheaper cost of new technologies or that the operators believe their current level of investment is sufficient to support their customer base. Investment by the telecommunication firms in voice services last peaked at Sh34.5 billion in 2011, following the

all-time high of Sh40.2 billion in 2009 when most of the investment was associated with rollout of masts across the country. The operators spent even less on data infrastructure at Sh3.5 billion in 2013, nearly halving the previous year’s investment of Sh6.1 billion. The firms have been upgrading their 2G network to 3G which offers relatively faster Interned speeds. Reduced capital spending came as the number of subscribers increased significantly in the quarter ended December and it remains to be seen whether the divergence in investment and customer growth will lead to poorer quality of service. Mobile subscriptions rose to 33.6 million in the quarter, up from 32.8 million registered during the previous three-month period. That of Internet subscriptions increased to 26.1 million from 23.2 million in the same period. Consumers are likely to be the hardest hit by the decision by the operators to scale down on their investment, with previous CA report on quality of services showing that none of the operators was complaint.

Voice revenues vs investments (Sh bn) Reduced investment comes amid non-compliance with set quality standards Revenues

investment

2009

90.3

40.2

2010

104.5

27.1

2011

116.6

34.5

2012

133.5

33.8

2013

140.2

30.3 SOURCE: CA REPORT

The CA expects the operator to achieve a score of 80 per cent on the eight indicators including speech quality, completed calls, call success rates and call drop rate. Safaricom, Airtel and yuMobile tied on a score of 50 per cent in the year to June while Telkom Kenya had a 62.5 per cent rating. The scaling down of investment follows stiﬀ competition in the sector that has seen only Safaricom turn a proﬁt. A major cut on investment in the

Mobile operators have been upgrading their 2G network to 3G which offers relatively faster Interned speeds, although they have now cut back investment in voice and data infrastructure. . FILE sector was witnessed in the year 2010 at the height of tariff price wars that saw the calling rates come down by more than 50 per cent, with the total amount spent by the operators during that year declining to Sh27 billion from Sh40 billion in the previous year. The CA report shows that operators’ revenues increased significantly, implying improved margins in the wake of reduce capital spending. Revenues from voice services –the most important segment— rose to Sh140.2 billion in 2013 or five per cent higher compared to the previous year’s Sh133.5 billion. Data revenues, however, dropped for the first time to Sh21.9 billion representing a 14.4 per cent contraction compared to Sh25.6 billion in 2012. mokuttah@ke.nationmedia.com

Sma≥t tech to powe≥ Konza se≥vices, says CEO BY OKUTTAH MARK

Konza City Technopolis is betting on the use of smart technology solutions to enhance the city’s efficiency and integrate infrastructure and services. John Tanui, CEO Konza Technopolis Development Authority, said smart concepts will be designed into the city using the most modern Internet and telecommunications networks. The city will use a single converged Internet Protocol (IP) network as the platform to plan, build, and manage day-to-day city operations. “The Konza IP network will allow for significant new efficiency in every aspect of life within Konza, enhancing productivity, improving availability of and access to public services,” said Mr Tanui. “Smart technology in Konza City will be integrated in transportation operations, sanitary collection, treat-

Konza City. Kenya’s leading ICT players are expected to form the bulk of pioneer investors and partners in Konza Techno City. FILE ment and re-use operations, storm drainage operations, water system operations, electrical system, e-Governance data centres, security parking and Informational signage landscaping,” he added. Mr Tanui further noted that the smart technology integration was benchmarked from best

practices of smart cities globally and would create “added value by improving eﬃciency, enhancing economic potential, reduced costs, opening the door to new business and services, and improving the living conditions of Konza City citizens.” The Techno City will host the

Konza Campus, a shared ICT platform for education systems for both local and international universities. Kenya’s leading ICT players are expected to form the bulk of pioneer investors and partners in Konza, with good interest registered by telecom operators and leading banks to locate their data centres and other ICT investments to Konza. Upon completion of Phase 1, Konza City is expected to create over 20,000 direct and indirect jobs. The technopolis is expected to host various amenities including ICT research centres, a university complex, oﬃces, residential houses and parks. The project is being implemented as a public private partnership, in which the Government will take a minimal role, developing the public infrastructure and regulatory guidelines.

Keroche Breweries has started recruiting distributors as part of a fresh bid to increase its products’ reach following the commissioning of a higher capacity factory last week. The Naivasha-based brewer is seeking 15 super distributors (depot owners) and 45 distributors in Western, Nyanza, and Rift Valley regions where the ﬁrm lacks a sales network. Keroche recently advertised positions for 20 sales managers and ﬁve brand managers ahead of the commissioning of a new Sh5 billion plant on March 31 which will see its annual brewing capacity increase tenfold. “We currently have approximately 45 distributors in Nairobi and Central Kenya,” said Kabutha Nduati, Keroche’s managing director. “The new team will ensure that the higher amount of product coming out of the factory reaches our customers across the country.” Super distributors will require a working capital of Sh10 million to begin their business and they will be acting like depot points, receiving their products directly from the factory. Distributors on the other hand will have to invest approximately Sh5 million as working capital, aside from having a minimum of two lorries and tow pick-up trucks. An advert placed by the brewer indicates that it is looking for distributors in Homa Bay, Kisumu, Migori, Kisii, Siaya, Busia, Bungoma, Vihiga, Kakamega, Bomet and Kericho counties. Others are Kajiado, Laikipia, Baringo, Nandi, Elgeyo Marakwet, Uasin Gishu and Trans Nzoia counties. “We currently do not have any distributorship presence in these counties,” said Mr Nduati, adding that this team will to work with the newly recruited sales employees. Keroche, which startedoperations in 1998, has been producing at peak capacity for several years but still failed to churn our enough volumes to meet customer demand. The brewer last week commissioned the new factory that will see its annual capacity grow from 10 million litres to 100 million litres, hence the need to revamp its sales and distributor network.

Keroche factory in Naivasha. FILE

Tuesday April 7, 2015 | BUSINESS DAILY

IDEAS & DEBATE OPINIONS I REVIEWS I ANALYSI S

MENTORSHIP Education and knowledge are tools we have within our reach to tackle poverty

Use school and college alumni to boost Kenya’s economic g≥owth

Other Voices Barack Obama US President

Colbert I. King (Washington Post)

BY CAROLINE MUGO

xactly 20 years ago, a group of us graduated from an all-girls secondary school situated in a Nairobi suburb. Only recently, at least 70 out of the 90 in my class were reunited, thanks to the power of social media. Mukumu Girls’ alumni association member, Justice Hellen Wasilwa, talks to students during a mentorship programme at the So we are now planning to mark our 20-year anniversary with a reunion. school in Kakamega County. ISAACK WALE But more important than feting the or old student associations, is not a new doctors, engineers, architects, marketcompetitiveness race. occasion, we have been contemplatone and in some countries, old student ers, accountants, bankers, traders, reOurschool curricular has however ing ways in which we can give back associations have a significant influsearchers, entrepreneurs, economists been criticised for its disconnect with to the school that, in hindsight, significantly contributed to who we have ence on the development of the instituand politicians, among others. today’s global realities. It is viewed as become today. tions they once called school. not fully designed to equip graduates at There is enough knowledge, reIdeas are endless as to the possible all levels with the relevant skills to set In Kenya or Africa, however, the sources and networks in any one ways we could make an impact. The concept of giving back has not set deep them up for enterprise in the globally such group to make a phenomenal enough roots. It is somewhat strong competitive environment. idea which has earned my vote, howdifference to any school. ever, is the proposal that we establish in the more affluent schools, which Old students therefore have a role A strong partnership between the a fund that will support any student to play in helping fill this relevance gap are most likely to be private, but very current school’s management board, who is struggling to meet their tuition between the real needs on the ground weak in the public schools’ domain. parents, teachers and the respective and other financial needs, as well as Yet, public schools and learning instiand what the curriculum offers by proalumni will promote faster infrafor rewarding top performing students tutions in Kenya can be credited with viding valuable practical insights to structure development, expansion with scholarships at the school. generating the greater proportion of programmes, modernisation and imboth students and teachers. While that is an ongoing conversaprovement of facilities, replacement Secondly, we need to double or trethe workforce available today. tion, it is one that has got me thinking ble our productivity if we are to survive of books and equipment, setting up At the moment, education has about the role that we play or don’t play capabilities such as ICT and other cothe highly competitive global environreceived considerable attention as in the welfare of institutions of learncurricular capabilities. These partnerment. To do this in the near term, we far the national budget allocation is ing we went through as old ships can also deepen focus in the areas must consider increasing the role of concerned, taking 25 boys and girls. If the truth of scholarships and student aid. women in the work force. The old girls per cent share of the A typical alumni be told, most Kenyans are the additional voice we need to that An association of old students is national cake. association who went to local schools however not only about material conof the parents and teachers in buildThis is mostly in will possess a would never dream of havtribution. It is an avenue for mentoring capacity among school girls if we support of free eduing their children attend ship of students given the wide range of hope to see more of them entering the cation and tuition in wide ≥ange of skills and knowledge from the various work place soon. the same schools they secondary schools. p≥ofessions professions. It is rare that pupils and Our economic future actually dethemselves attended. Still, facilities are inand skills students ever get to mix with entrepreadequate and basic pends on such paradigm shifts. Most will not even reneurs or executives at the earlier stages It’s not all smooth sailing however veal which schools they learning equipment of their schooling. Alumni mentors can and there are challenges to this intenattended. Reason? They lacking altogether in achieve these beneficial interactions tion. There are fewer professionals remember a run down, many schools. and while doing so provide insightful willing to mentor positively today as dilapidated and neglected establishTo fully reform, equip and enerment with poor or declining academic career guidance at these early stages. gise Kenya’s education system will a result of brain drain, poor remuperformance. This is more so in the The question then is why it is more neration, poor working conditions take more than just the government, rural and marginalised areas where important now than ever before for and limited rights of unions in some parents and teachers. It will take a conditions are less forgiving. the old students to get more involved professions. fourth force-the old student. in what is happening back at their old But whatever the cause to shy All these have an effect on the imAnd that could only happen if the schools. Well, it has a lot to do with the pression that old students working away from any association with our culture of giving back to our former former schools, it is time to give these economy. those professions will give to the aspirinstitutions of learning takes root. A physical landmarks of our past lives strong association of the old students ing professionals. Balance is therefore First, education and knowledge is is an extremely effective tool in the key when dealing with the young, resta rethink. one of the tools we have within our reach to tackle the poverty that is still less and highly impressionable. advancement and improvement of Old students have a place in the rife in our country. This is because public schools. A typical alumni aseducation system, whether at primary, secondary or institutions of higher Ms Mugo is a Mombasa-based finance sociation will possess a wide range becoming a knowledge economy is learning. The concept of school alumni key to Kenya surviving the stiff global professional (cmugo1@gmail.com) of professions and skills; educators,

It’s a scary thought, but here it is: If some red states were to openly defy the authority of President Obama in the exercise of his constitutional duties, would today’s Republican Congress side with him? Or would they honour the insurrection. American history teaches that we are on a dangerous path. A little more than 150 years ago, this country experienced another bombastic phase. Hatred of a president and his government’s policies produced a bloody schism thated to an accord grounded in hope but which papered over a disharmony still lingering today.

David Cameron UK Premier

Nick Cohen (Guardian) Nothing is more dishonest than David Cameron’s slogan that a vote for the Conservatives is a vote for “competence over chaos”. Nothing is more disreputable than the failure of our allegedly ferocious 24/7 media to examine it. Cameron’s decision to hold a referendum on Europe in 2017, should the Tories win, will bring political, constitutional and economic chaos. I suspect he is bailing out because he knows it all too well. Shinzo Abe Japan PM

Fred Hiatt (Washington Post) Has World War II ended in the Pacific theater? That might seem a silly question in a year when the leaders of Japan and South Korea are coming, separately, to Washington in part to mark the 70th anniversary of the Allies’ victory in Asia.It’s striking that Japanese officials have to point out as a significant accomplishment when their prime minister, Shinzo Abe, and South Korea’s president, Park Geunhye, shake hands.

BUSINESS DAILY | Tuesday April 7, 2015

EDITORIAL & OPINION

Published by the Nation Media Group, Kimathi Street, Nairobi

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

Sea≥ch fo≥ CBK gove≥no≥ should be t≥anspa≥ent

s the Public Service Commission (PSC) starts to pick the final shortlist of the persons to succeed Njuguna Ndung’u as Central Bank of Kenya governor today, it’s critical for the panel to stick to merit. Selection of high profile public servants, including principal secretaries and board chairpersons, has been faced with bias claims and alleged influence by politicians. The process of hiring the central bank chief should be seen to be free of any interference amid jockeying by politicians to push for their favourite candidates. This is the first time the central bank chief will be chosen through open competition. Previous chiefs were named by the president without a formal application process. We need a governor whose track record is already known and one who will maintain the bank’s policy on price and exchange rate stability as well as police the banking sector without interference. This can only happen if the person is picked transparently and not through the influence of third parties that the governor may pledge allegiance to. Prominent economists at the World Bank and the International Monetary Fund (IMF) were locked out of the race for three top positions at the Central Bank of Kenya (CBK) despite their long ex-

perience in policy making. This has led to unsupported allegations that the shortlist was being done with the preferred candidate in mind. Five candidates have been shortlisted for the position of CBK governor. Present deputy governor, Dr Haron Sirima, the Economic Affairs director at the Treasury, Dr Geoffrey Ngungi Mwau and former Planning permanent secretary and one time CBK deputy governor Dr Edward Sambili are among those shortlisted to replace Prof Ndung’u who stepped down on March 3 after serving the maximum of two four-year terms. Dr Patrick Ngugi Njoroge and Dr Peninah Wanjira Kariuki also made the cut and will battle it out with the three veterans. Names of the top three will be submitted to President Uhuru Kenyatta by mid-April to pick his preferred candidate. His choice would need to be approved by Parliament. This process clearly shows that the process of tapping the governor is a political one. But we don’t need a governor who will politicise issues. And Kenya can only guard against this fear by ensuring that names handed to the political class have been selected with merit. Therefore, the PSC must fulfil its promise to make sure the new governor is well-known and respected through a transparent process.

End the caliphate d≥eam

he Garissa University College killings have exposed the greater threat that we face over homegrown terrorists. The proﬁle of the mastermind, Mohammed Abdullahi a lawyer, is a sharp contrast to the long-held suspicion that the Al-Qaeda-backed Al Shabaab was radicalising the unemployed youth and taking advantage of their societal helplessness. At the moment, combating radicalisation of the youth is a disjointed mess. What is required is a clear strategy – both overt and covert; a working relationship with the community leaders, and a national awakening of the imminent caliphate threat that hangs on our country. The war declared on us is no longer about Kenya’s military presence in Somalia. The larger

aim is the restoration of what has come to be identified as the Islamic Caliphate and Kenya falls within the larger map. The Islamic extremists – most of them affiliated to ISIS – are fighting in Yemen, northern Nigeria, Libya, Iran, Iraq, Egypt and now Somalia. The presence of AU soldiers in Somalia disturbs their forceful emergence and neither will the withdrawal of Kenyan soldiers – nor their presence - quash the radicals dream of turning Kenya as part of the caliphate. The onus is thus on Kenyans to be more vigilante and more pro-active in providing intelligence. The duty will also be on the state to act on the provided intelligence fast. The Garissa raid should mark the end our business as usual stand on national security. We must end the caliphate dream.

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“We rarely back up our computers... We do a lot of wrong things around here, we don’t mind losing incriminating data...”

Customised ag≥icultu≥e can spu≥ g≥owth CHUCK MAGRO DEVELOPMENT

e marvel that Nike can let us design custom shoes to ﬁt our own needs and style, or that we can use healthcare apps to access round the clock, tailored health resources we may require. Very quietly, the agricultural sector is going through a similar transformation of “mass customisation”, in order to increase food production by 50 per cent by 2030 to meet growth in demand and to alleviate malnutrition. This challenge of growing more with less is being discussed in the ongoing UN negotiations to create a set of new “Sustainable Development Goals” which will replace the Millennium Development Goals when they expire this year. I believe that customised technologies will play a central role in delivering the sustainable development goals for agriculture and food security. Let me explain why. In the context of these UN meetings, precision agriculture is the key to giving each farm the exact things it needs to sustainably intensify its production over the long term. We call it the Four R’s: delivering the right nutrients, at the right rate, at the right time and in the right place. And at the very core of precision agriculture is the eﬀective and customised use of technologies and innovations. For example, many farmers today are using sophisticated GPS technology on their tractors and combines to inform their decision-making. This technology

allows them to map the precise range of soil types on their farm so that they can choose the right seeds and apply the right amount and type of fertilizers on their ﬁelds – not more, not less – to achieve the best yields while helping avoid runoﬀs. The same technology can help them to identify potential pest problems, when to plant or harvest, and even how much water is required, so that less is wasted. Maximsing productivity also reduces the need create more farmland by cutting down forests or converting other natural habitats, thereby preserving biodiversity. In fact, it is estimated that improvements to crop yields, as opposed to putting more land into agricultural production, have saved around 34 percent of the total carbon emissions caused by humans through the year 2005. In essence, data is enabling farmers to get the most out of their land while also being good stewards of the environment. In some regions, this shift may look like a more streamlined use of inputs. Even an agricultural powerhouse like China has committed to more targeted fertilization as a strategy from 2020 on. In other regions, most notably in sub-Saharan Africa, where fertilizer use is lowest, 65 percent of soils are degraded due to continuous farming without replacing vital nutrients in the soil, and better access to fertilizers will be needed. Declining soil health has contributed to cereal crop yields of only around onetenth those in the United States, which perpetuates hunger and malnutrition on the continent, never mind the estimated

VIEWS FROM ABROAD

economic loss of $68 billion per year. For those farmers in Africa without access to more complex technology, even simple methods like microdosing of fertilizers, whereby small amounts are delivered specifically to each seed during planting, can play an important role. Helping to get precision agriculture to scale will require several barriers to be overcome. To begin with, the right rural infrastructure must be in place, in the form of electrification, roads, railways and ports. More should be invested in helping rural areas be connected to the Internet and via mobile phones. Lastly, education and research must continue to be supported. It is estimated by the International Food Policy Research Institute that an extra $88 billion spent on agricultural infrastructure over the next 15 years would give benefits of $2.96 trillion. But it doesn’t have to just be spending on long-term research; there is value all along the agricultural value chain if the right talent, especially youth, is educated on how to generate more agricultural innovation and deploy existing innovations more widely. The challenge to feed the growing population of the world and eradicate malnutrition is huge. When farmers have access to the right products, knowledge and tools, they feed our planet, but they can also lift themselves out of poverty and contribute to their countries’ broader development. The writer is CEO of Agrium and a board member of the International Fertiliser Industry Association.

Opinions f≥om a≥ound the wo≥ld

Strengthen ﬁght on terrorism

Why Cosatu is a house of cards

Beef up war on corruption

East Africans must condemn the attack by armed Al-Shabaab militants on Garissa University College in Kenya last week. What happens in Kenya DAILY MONITOR KAMPALA affects us all. Even worse, the symbolism of this attack must jolt us into action. This means the terrorists have invaded even places once considered havens of reason and tolerance; above all — safe for our children. This attack must jerk us into wakefulness, it must impel us to educate our communities about anti-terror preparedness in our public spaces.

The crumbling of trade union federation Cosatu continued apace this week. First there was the long-expected ﬁring of general secretary Zwelinzima Vavi. Then MAIL & GUARDIAN JOHANNESBURG there is the labour federation’s own documentation of how bad its ﬁnancial situation is. Breakaways, a weak economy and retrenchments have meant a loss of some members and the rebel unions are refusing to remit funds to the federation. There are also accusations of corruption. How can Cosatu honestly represent workers when its leaders have jumped on such a gravy train?

The Justice ministry has pledged to clamp down on those involved in the misuse of public funds. This should extend to those responsible for delays THE NEW TIMES KIGALI in implementing government projects. The Government should strengthen ﬁnancial reporting and monitoring systems so that cases of corruption are detected early. Also, leaders should take responsibility for mistakes committed by those under them. Otherwise, the ﬁght against graft and mismanagement of public funds could end up in a wild goose chase.

Tuesday April 7, 2015 | BUSINESS DAILY

EDITORIAL & OPINION

Bill should seek to make audit oﬃce mo≥e eﬀective JOHN NDUNYU TAXATION

There is no doubt Kenya is experiencing a new dispensation with regards to governance of public resources. The empowered public (thanks to the 2010 constitution) expects public spending will be more transparent and hopefully, the eﬀectiveness and eﬃciency of public resources use will be enhanced. The reality is that resources are scarce yet demands for public spending in areas such as salaries are on the rise bringing into focus the role of the Auditor General (A-G). Past A-G reports have highlighted serious cases of mismanagement or

theft of Public resources. The latest audit report for the fiscal year 2012/ 2013 covering ministries, departments, agencies and funds indicated that only 12 per cent of the entities audited received a clean audit opinion (i.e. unqualified). The same situation affects receipts received into the Exchequer Account. The role of the A-G is therefore even more critical now for a number of reasons. First, entities subject to audit have increased. Article 229 (4) defines the responsibilities of the A-G to include audits of National and County governments, State corporations, courts, both houses of Parliament, commissions and independent offices estab-

Letters

lished by the constitution, funds and authorities managed by national and county governments and any other entity that legislation requires the AG to audit. Secondly, public expenditure is rising. According to Budget Implementation and Review Report (BIRR) issued by the Office of Controller of Budget, expenditure for the fiscal year 2013/2014 amounted to Sh1.6 trillion, up from Sh1.2 trillion and Sh920 billion in the fiscal years 2012/2013 and 2011/2012 respectively. This means the A-G’s coverage must increase. Thirdly, Article 229 (4) of the constitution requires that within 6 months of closing the financial year, the auditor -general should audit and

report to the national or county assembly, as the case may be. It is imperative therefore that the ongoing review of the Public Audit Bill 2014 be exhaustive and robust to ensure the office of the auditor general is positioned to respond to these new requirements. Among the key issues this Bill must address is the capacity of the office to discharge its constitutional mandate effectively and independently. Ultimately, the independence of the office of the A-G as established under Articles 248 (3) and 249 of the Constitution, must be actualised to ensure its effectiveness. Mr Ndunyu is a Partner at KPMG Kenya

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

Lessons State must learn in war against terrorism

he government must identify and seal the loopholes that led to last Thursday’s Garissa University College terrorist attack, which has shocked the international community. I reiterate the words of the US ambassador to Kenya that the government should learn from the attack. It is quite disturbing to see the 142 university students massacred like flies. The most painful part is that one of the terrorists was a former Law student at the University of Nairobi. The question is how many others are like Abdirahim Mohamed Abdullahi? The solution is to carry out a comprehensive research on what pushes young men into radicalisation. Looking at the value bases for the youth would provide one of the solutions for fighting the vice. Another would be for the government to review its strategies and ways of fighting terrorism. What did the government do to thwart the plan after warnings were issued? That is one of the things that it needs to review. Another question would be what was the source of the information? If it was not from the intelligence service, then a lot more review on the NIS needs to be done. There is no other option but to win the war against terrorism. The government might block the terrorist from incoming in, but how will it handle radicalisation? It is food for thought as to

Denis Kirui, 19, a survivor of the Garissa University College terrorist attack is comforted by a relative on arrival in Kericho town on Sunday. where did the rain start beating us. An island of peace is slowly transitioning into a fountain of bloodshed. Very sad. As citizens of this nation, we call upon the government to ensure our security. Let every sector be involved in searching for solutions for the sake of Kenyans. I will go back to the case of Abdullahi. His disappearance was reported to the police. The parents did their part. What if the police or the intelligence service had tracked, his whereabouts, would the attack wouldn’t have been thwarted? This exposes the fact little ac-

tions are done on intelligence information. This is another point that must be looked at with seriousness. The ﬁght against terrorism is possible, it has been in other countries.

COLLINS KIPKORIR Multimedia University

he gruesome terrorist attack in Garissa last week in which 147 lives were snuﬀed out by Al- Shabaab has sent ripples of justiﬁable anger across the country. The whole world has joined Kenyans of all divides in mourning and condemning the cruelty

manifested in the Garissa University massacre. However, talk among folks in the streets shows that Kenyans risk being divided along sectarian lines, a key AlShabaab objective in their war. It is slowly turning into a blame game where fingers are being pointed at a certain community and or religion, worse still; terrorism is gradually being equated to a religion rather than being viewed in its true form. As Kenyans, we must refuse to go down the filthy road of religious intolerance and turning against one another. We must unite and face the enemy in unison regardless of our religious, ethnic, political or racial differences . It is what the country desperately needs if we are to triumph over terrorism. Religious leaders must come out and unequivocally preach peace and unity among their flock, encourage religious tolerance and make their congregations understand that terrorism does not have any bearing with any religion. We have witnessed AlShabaab butcher innocent civilians in Somalia yet when they cross the border into Kenya they play their religion card. Kenyans must read between the lines here to see the bigger picture. Unity is our magic wand, by so doing, terrorist groups will not thrive in our midst hiding behind the covers of religion.

PATRICK KIMINTA via email

Outline of a ≥oadmap to an I≥an nuclea≥ deal SHARON SQUASSONI POLICY

t historic moments, we sometimes expect to hear historic language. But that was not the order of the day in Lausanne, Switzerland, as diplomats concluded their marathon negotiating session to reach a nuclear deal with Iran. In the carefully crafted statement by the European Union’s Federica Mogherini and Iranian Foreign Minister Zavad Zarif, the outcome of eight days of talks was awkwardly referred to as “solutions on key parameters of a Joint Comprehensive Plan of Action (JCPOA).” While this is certainly an upgrade from the November 2013 Joint Plan of Action (it is now “comprehensive”), it is far from done. The Lausanne arrangement is not a treaty, it is not a framework agreement, it is not signed, it may not even be an agreement. In his remarks, President Barack Obama stated that “nothing is agreed until everything is agreed.” For the moment, it is an understanding. Curiously, the four issues that were outstanding at the beginning of the week were barely mentioned in the joint statement. These were the duration of the agreement, the disposition of the stockpile of nuclear material, the phasing out of sanctions and research and development (R&D) on advanced centrifuges. The Mogherini-Zarif statement made no mention of any timelines, either for the agreement or for sanctions, and the only reference to the stockpile was that it would be limited for a specified duration. Despite these (and likely other) gaps, the Mogherini-Zarif statement was specific about some issues. Clearly, both sides agreed on the parameters for Iran’s Arak heavy-water reactor; its redesign, along with Iran’s pledge not to reprocess spent fuel and not to build other heavy-water reactors in the next 15 years, significantly cuts off the plutonium route to the bomb. The next few months will be crucial. The push for a framework agreement this week likely had one purpose: to give Iranian negotiators time to take the outlines of an agreement back to Tehran for final approval. Agood deal will limit Iran’s nuclear programme but not forever. It will only buy time, but such time is necessary and valuable to both parties of the agreement. With additional monitoring and restrictions, Iran has the opportunity to demonstrate that it is complying with its rights and responsibilities under the Nuclear Nonproliferation Treaty, that it has a verifiably peaceful nuclear energy programme that could benefit from uranium enrichment and that its capabilities present a commercial opportunity to its neighbours rather than a threat. This could take a few more decades and a few more historic moments. The writer is a senior fellow at the Centre for Strategic and International Studies (CSIS) in Washington, DC

BUSINESS DAILY | Tuesday April 7, 2015

NEWS INDEPTH

Left turn only from Rhapta Rd

RECONFIGURATION OF MOVEMENTS AT WESTLANDS

A section of the Nyayo Stadium roundabout barricaded to facilitate its removal in a push by the government to ease trafﬁc jams around Nairobi. DIANA NGILA/SALATON NJAU

Anxiety as t≥aﬃc decongestion plan in Nai≥obi faces majo≥ test TRANSPORT Sections of roads closed as State experiments

t is make or break for City Hall and the Transport ministry when a two-week experimental project to ease congestion in Nairobi through the removal of key roundabouts faces its first major test this morning. For the first time on a busy workday, motorists in Nairobi will have to navigate key roads without the luxury of roundabouts that have been blamed for the nauseating traffic gridlocks around the city. Contractors over the Easter break blocked three roundabouts on the city’s main Uhuru Highway and Waiyaki Way as part of the new traffic management system where right turns are not allowed on intersections to avoid possible blockage of the general flow of vehicles. The affected points include The Mall intersection in Westlands where motorists from the city and Rhapta Road will no longer be allowed to turn into Westlands. They will instead proceed to a U-turn at Brookside Drive then make their way back to Westlands. Those from Westlands driving into Rhapta Road or Kangemi will not be allowed to turn at the intersection, but will drive on to the U-turn near Consolata School. Motorists from Industrial Area using Lusaka Road to the city centre will not be

allowed to take a turn at the Nyayo Stadium intersection, but will instead drive in the opposite direction and take their turn at the South C bridge.

No right turn Motorists from the central business district (CBD) or Bunyala Road seeking to join Langata Road at the Nyayo Stadium intersection will also not be allowed to turn right, but will have to drive on and take their turn at the South C bridge. Further, motorists from Langata Road either trying to join Mombasa, Lusaka or Bunyala roads from the Nairobi West area will have to drive on and take their turn at the Uhuru highway/Hailesellasie intersection. Exiting the road at Chiromo to Riverside Drive will also cease because motorists will be required to proceed to Westlands Roundabout and exit using Rhapta Road towards Kileleshwa. Motorists entering South C from South B through the overpass on Mombasa will not be allowed to make a right turn towards Nairobi West. Motorists joining Hailesellasie avenue from Uhuru park have also been banned from making right turns towards Upper Hill.

Success An experimental ban on right turn on the

No left turn at Riverside Drive

Replacement of roundabouts with signalised junctions

for two weeks removal of ﬁve roundabouts to ease snarl-ups BY ALLAN ODHIAMBO

U turn entry to Westlands (Near Brookside Groove) Requires capacity enhancement. Short term solution may be police trafﬁc control.

Ring

Waiyaki wa y

a Rd t p a Rh

Entry points to Westlands via Woodvale Groove to School Lane

Entry points to Westlands via Pio Gama Pinto Rd

91.4bn

Estimated economic cost of congestion in Nairobi per year.

288m

The amount of money the government will use in the project to remove ﬁve roundabouts (University Way, Kenyatta Avenue, Haille Selassie, Bunyala Road, Lusaka Road).

Khoja mosque/Old Nation roundabout within the CBD has proved an instant success, easing traffic congestion on the stretch linking the CBD to the Ngara area. It will, however, be interesting to see if the success is replicated on Uhuru highway and Waiyaki Way that are notorious from traffic congestion. Critics will keenly observe how City Hall, the Transport ministry and the National Transport Safety Authority (NTSA) deals with an expected upsurge of traffic on Mbagathi Way as motorists attempt to dodge the pain

Signalised pedestrian and cyclist crossing

Signalised junction

of having to drive to the South C bridge before turning back to rejoin Langata Road at Nyayo Stadium.

Mbagathi Road By yesterday several public service vehicles (PSVs) plying the Rongai, Karen and Langata routes had opted to use Mbagathi road to exit the CBD, triggering traffic congestion around the City Mortuary roundabout and affecting movement on the busy Ngong Road. Officials would also have to deal with motorists making illegal turns on the

Tuesday April 7, 2015 | BUSINESS DAILY

NEWS INDEPTH

THE FIGURES

6,047 vehicles The number of cars that use University Way roundabout per hour during evening rush hour.

4,600 vehicles Mu seu mH ill

ass p r e Ov e b Glo

Right turn back to Westlands at Chiromo

The number of cars that use Bunyala roundabout per hour during evening rush hour.

ay ghw

i ru H

Left turn only from Upper Hill

Rd ome

d Langata R

Rd basa Mom

Suspended registration He said City Hall has also suspended registration of new matatus in Nairobi pending

Left turn only

Left turn only from Aerodome Rd

Left turn only from Langata Rd to Uhuru Highway

a demand analysis of all routes. Traffic police officers will man the control rooms to monitor offences and alert officers on the ground as the government pushes on with the new traffic management system. The removal of the roundabouts is expected to be a quick fix improvement of the flow of vehicles along the main road as authorities develop long-term solutions. In 2012, a near similar system complete with traffic lights and cameras was procured at a cost of Sh400 million but has failed to take off. aodhiambo@ke.nationmedia.com

way High

y hwa u Hig Uhur

stretches between Bellevue and Nyayo Stadium and Bunyala road and the Railways bridge on Uhuru highway in order to beat the bans on right turns at the Bunyala and Nyayo stadium roundabouts. Some motorists were by yesterday making illegal turns across the island on Uhuru highway just before the railways bridge to avoid driving down to the Hailesellasie roundabout to connect to either Mombasa, Bunyala or Lusaka roads. City Hall last month said that there are an

d ala R Buny ru Uhu

Channelisation of Lower Hill Rd / Haille Selassie

estimated half a million vehicles in the capital and that about 7,000 new vehicles are added to its roads every month. “Nairobi loses Sh85 billion per year due to traﬃc jams not to mention the long time it takes to move around the city, which is discouraging investment in the city,” Governor Evans Kidero said when the traﬃc decongestion plans were unveiled in March.

RECONFIGURATION OF MOVEMENT ON BUNYALA ROAD / LUSAKA ROAD

Uhu

Left turn only

The number of cars that use Kenyatta Avenue roundabout per hour during evening rush hour.

6,500 vehicles

Channelisation of Upper Hill Rd / Haille Selassie

y hwa u Hig Uhur

Left turn only

y hwa u Hig Uhur

CLOSE UP OF A SIGNALISED JUNCTION

Tom Mb oya

5,228 vehicles

Channelise to ensure left turn only to River Road and Tom Mboya street. Concrete barrier Channelise to ensure left turn only from Moi Avenue

Aero d

Left turn only from Ring Rd

The number of cars that use Westlands roundabout per hour during evening rush hour.

RECONFIGURATION OF MOVEMENT ON OLD NATION ROUNDABOUT

No right turn from Baricho Rd to Lusaka Rd

ka Lusa

Left turn only

RECONFIGURATION OF MOVEMENT ON KIGANJO AVENUE BRIDGE One way over bridge (Kiganjo Avenue) No right turn from Tsavo Road to Mombasa Road

5,300 vehicles The number of cars that use Lusaka roundabout per hour during evening rush hour.

BUSINESS DAILY | Tuesday April 7, 2015

REGIONAL NEWS AID Fate of $3bn a year aid hangs in the balance, with signs that president seeks to stay put

TRIPOLI

Weste≥n dono≥s face dilemma ove≥ Kabila te≥m The expiry of Congolese President the donors’ efforts and programmes Joseph Kabila’s second mandate next for governance reform,” said Thierry year, a crucial test of governance, risks Vircoulon, central Africa project diexposing the limitations of Western rector for International Crisis Group donors trying to promote democracy (ICG). “The deep reason for this: the and transparency in return for the bilmaintaining of a kleptocratic governlions they have spent on aid. ance is key to Kabila’s survival.” At issue is Kabila’s future; opposiThe dilemma for Western dotion activists as well as Washington nors is clear: Can they attach poand other Western countries fear he litical strings to a $3 billion a year international aid programme that acis seeking ways to extend his tenure counts for almost all the beyond a constitutional humanitarian spending limit, in the manner of in a country that ranks many African leaders We Congolese, 186th out of 187 countries before him. US President Barack and especially the on the UN Human DevelObama personally called opment Index and has an young people, Kabila on Tuesday, urging average life expectancy of him to organise timely, want the count≥y 50 years? In private comments, credible and peaceful to change they also say that any preelections and think of CONGOLESE CITIZEN cipitous cuts in financing his legacy, the latest of for a UN peacekeeping many appeals. mission could allow civil Yet, when a US diploconflict to reignite, with memories mat was briefly detained along with still fresh of a war in 1998-2003 war 40 activists and journalists at a prodemocracy event co-sponsored by the that sucked in half a dozen neighUS embassy this month, the governbours and cost millions of lives. ment was unrepentant, saying the But political frustration is also Democratic Republic of Congo was rising in Congo, although the government says that, under Prime “not a sub-prefecture of the United Minister Augustin Matata Ponyo, States”. “The government has sabotaged all it has improved accountability and

Libya to run own oil sales, deposit revenues abroad

Protesters run after Democratic Republic of Congo soldiers opened ﬁre to disperse a crowd of demonstrators during a protest in January against moves to allow President Joseph Kabila to extend his hold on power. AFP reduced corruption. Foreign powers did succeed in February in helping to persuade the government to release a calendar for local and national elections over the next two years. Kabila has refused to comment on his political future, though a spokesman has said that he intends to respect the constitution. He took oﬃce in 2001 after the assassination of his father, and won disputed elections in 2006 and 2011. He is constitutionally required to step down after an election scheduled for November 2016. But at least 40 people died in violent protests in January against a proposed law that would require a national census before the next election —a move that opponents said was intended to delay the vote. Activists in Kinshasa and the eastern city of Goma have accused authorities of intimidating them to silence criticism. “The only crime of these young

compatriots is of being conscientious citizens, engaged and peaceful, and of having had the idea of debating about democracy and good governance,” said the pro-democracy youth organisation Lucha. In the streets of Kinshasa, many feel not enough has been done to spread the wealth from a mining boom, concentrated in the hands of a small elite, among the population of 68 million. “We Congolese, and especially the young people, want the country to change,” said Ange, a money changer in the Barumbu commune. “The government treats us like animals.” Matata, however, says strong economic growth of 9.5 percent last year is starting to be felt by the general public through advances in infrastructure, agriculture and education. -REUTERS

Af≥ican campaigne≥s take aim at immovable leade≥s

ed up with immovable African presidents and political dynasties, campaigners across the continent are joining forces to “turn the page” on leaders who see power as an end in itself. As Nigeria marked its ﬁrst ever democratic change of power following national elections, a report published this week by the Tournons La Page (Turn the Page) campaign group highlighted just how unusual incumbent Goodluck Jonathan’s decision to concede defeat was. According to the report, 88 percent of Togolese and 87 percent of people in Gabon have only known one ruling family. Burkina Faso dictator Blaise Compaore was driven out by his people last October after 27 years of rule while President Paul Biya of Cameroon and his Congolese counter-

Senegalese singer Youssou N’dour is leading pro-democracy campaigns. AFP part Denis Sassou Nguesso have each accumulated more than30 years in power. Cameroon’s democracy hunters may well be casting envious glances over the border to Nigeria where Muhammadu Buhari scored a narrow electoral victory over Jonathan in the country’s March 28 poll. With a raft of upcoming elections

BRIEFING

in mind, the regional appeal to turn the page was launched late last year by NGOs in 30 African and European countries and signed by prominent African ﬁgures including Senegalese singer Youssou N’dour and Cameroonian historian Achille Mbembe. The call for change harks back to the multi-party politics which began to emerge in the 1990s. Twenty years on the campaigners are seeking to energise ordinary people and make a round of elections throughout Africa over the next couple of years result in an end to the dynasties. “We realised that Congolese civil society was becoming more amorphous... and was not playing its role,” said Jean-Chrysostome Kijana, head of the New Dynamic of Civil Society group founded in the Democratic Republic of Congo in 2013.

He was in Paris for a conference organised by ‘Turn the Page’, at which he spoke alongside campaigners from Cameroon, Congo Gabon and Togo. New movements are springing up and inspiring each other; “Enough is Enough” in Senegal and the “Citizens’ Broom” in Burkina Faso were trailblazers, recently joined by similar groups in Chad and the Democratic Republic of Congo. The fall of Compaore in Burkina Faso and the proposal by Senegal’s President Macky Sall to reduce his own mandate by two years have fuelled hopes that public mobilisation elsewhere can bring about change. “We have to understand, in Africa too, that we are able to oﬀer an example, and that power is not an end in itself,” Sall said last month as he made his announcement. -AFP

Libya’s Prime Minister Abdullah al-Thinni said his government would run its own oil sales and deposit revenues abroad in a bid to divert proceeds away from a rival, self-declared administration in Tripoli. Crude revenues are at the heart of a battle for control of the North African OPEC producer that has pitted the two rival camps against each other in a growing conflict, four years after the fall of Muammar Gaddafi. The fighting has worsened as militants loyal to Islamic State have become involved and exploited the chaos to carry out a series of high profile attacks.

ACCRA IMF approves three-year $918m assistance for Ghana The International Monetary Fund has approved a three-year $918 million financial assistance deal for Ghana aimed at restoring economic stability and boosting job growth, and said it would disburse about $114.8 million immediately. The deal should help government efforts to tame inflation, reduce a budget deficit and restore currency stability. Sustained GDP growth of around eight per cent per year, coupled with a stable democracy, made Ghana one of Africa’s best-performing economies. But the government forecasts growth at 3.9 per cent for 2015, below an IMF forecast for sub-Saharan Africa.

FREETOWN Kailahun district records first Ebola case in months Sierra Leone’s eastern district of Kailahun, once a hotbed of Ebola, has recorded its first case in nearly four months, threatening progress made to stamp out the disease, officials said. A 9-month-old boy tested positive for Ebola after dying in Kailahun, the district on Guinea’s border that recorded Sierra Leone’s first Ebola case last May and was for months the epicentre of the crisis. Kailahun went from recording up to 80 infections per week in June to zero cases at the end of last year. Nearly 3,800 people have died of Ebola in Sierra Leone but weekly cases are falling as steps to control the disease take hold.

CAIRO Militants attack church and police in Cairo, Alexandria Islamist militants hit Egypt’s two largest cities on Sunday with a bombing in Cairo and an attack on a church in Alexandria, leaving one policeman dead and seven people wounded, security sources said. In a separate incident, the leader of a militant group that has targeted police and soldiers around the capital was killed in a ﬁreﬁght with security forces early on Sunday, the interior ministry said. Egypt is facing an insurgency based in North Sinai that has killed hundreds of soldiers and police since the army toppled Islamist president Mohamed Mursi in 2013 following mass protests against his rule.

Tuesday April 7, 2015 | BUSINESS DAILY

ENTERPRISE SUCCESS

AGRICULTURE

Tech entrepreneur unlocks markets for poor farmers

Chebet’s ‘new face of Africa’ shines on designer bags

Pages 16-17

Page 18

eventually cracked it.” Mr Vora said he made a fortune from his maiden deal but could not divulge details citing confidential clauses signed with the client. Orange Kenya later gave Sintel exclusive rights to print their scratch cards for the local market. “The experience was humbling, we learnt how to take control of a challenge no matter how big it seems to be,” said Mr Vora. A few months after the Orange transaction Mr Vora approached Safaricom for another deal. In September 2012, the firm secure a multi-million deal with Safaricom to print scratch cards. The company could not divulge details surrounding the transaction only saying that the business was profitable.

Secured a deal

Local sc≥atch ca≥d, cheque p≥inte≥ joins the big league GROWTH Bipin Vora’s security documents printing ﬁrm has deals

with Safaricom, Orange Mobile, Vodafone Uganda and six banks used for 20 years and not many people were interested in it when we bought he small signpost at the en- it. We acquired the six and a-half acres trance to Bipin Vora’s firm in of land together with old buildings,” Thika Light Industries area Mr Vora, 61, told the Business Daily in an interview. may give the wrong impression that one is meetThe property cost ing a commoner trying out Sh920 million, funded We sought his luck. through borrowing and acc≥editation But Mr Vora is a sucfamily cash. by the Kenya cessful businessman who One year after rebranding Mr Vora is behind Sintel Security Banke≥s sought business from Print Solutions Ltd which Association and Orange Kenya and after prints airtime scratch ≥olled out the months of lobbying he secards with a clients base that includes regional se≥vice in 2014 cure a two-year contract to print scratch cards for telecom firms Safaricom, Orange Mobile Kenya and BIPIN VORA, FOUNDER, SINTEL the firm. SECURITY PRINT SOLUTIONS LTD Vodafone Uganda. “This was the most Sintel Technology, cotrying moment for us. owned with Mr Vora’s wife Vasanti, We were starting off and securing the was registered in 2010 and renamed business was very involving, almost Sintel Security Print Solutions Ltd in impossible. We requested to be given 2011. “This place was deserted and dis- an opportunity to prove ourselves and BY SIMON CIURI

Mr Bipin Vora, the founder of Thikabased Sintel Security Print Solutions Ltd. COURTESY

“We had already secured a deal with Orange and their recommendations. My business principle has been to take necessary risk, if I fail there must be lessons learnt, if I succeed that’s an additional challenge and motivation to take on the next risk, no complacency,” he said. Mr Vora said that Sintel does not have exclusive rights to print Safaricom’s scratch cards. Safaricom chief executive Bob Collymore could not be reached for comment on how many local companies print their scratch cards, while corporate affairs director Nzioka Waita’s mobile phone was off when we tried to reach him. Mr Vora said that activating printed scratch cards is done by mobile phone operators while outsourced companies mainly design, print and supply them according to specifications including serial numbers. After the success with Safaricom and Orange, Sintel diversified into printing cheque books targeting local lenders. “We noticed that there was a gap given there were few players in this business. We sought accreditation by the Kenya Bankers Association and eventually rolled out the service in 2014,” said Mr Vora. Britain’s Dela Rue has been the main printer of Kenyan currency and cheque books. Mr Vora said they print cheque books for

six banks. Initially, Sintel used to print cheque books in the UK but later bought machines and now does the job locally. “Competition never worries me, I believe the ocean is big enough for everyone to get a sip,” he said. “I am not yet rich but I am working on getting there, we have achieved only 20 per cent of what we want to do,” he said when I asked him about Sintel’s annual turnover and how much he is worth. Sintel has 150 employees and the number is set to rise given that the firm plans to re-package Sim cards targeting the East and Central Africa market. Kenyan born Vora attended Allidina Vishram High School in Nairobi and graduated with a Bachelor of Arts in Economics degree from the University of Nairobi. His first job was at a carton making company. His father and brother inspired him to set up his business. “My father used to work in a bank while my brother operated numerous petrol stations, their success and aggressiveness greatly influenced me into entrepreneurship,” said the father of two Mr Vora operates numerous companies including Petroleum and Industrial Services which does maintenance work for petrol stations and sells pumps to oil companies. It has operations in Kenya, Uganda, Tanzania, Rwanda and Burundi. He also owns Bags and Bailers. Mr Vora is the publisher of collapsed The Analyst magazine. He said the current printing business is sensitive and requires security checks, balance, accuracy and a lot of funds. After work, he likes watching sports, reading and travelling. Succession planning, he said, is inevitable to ensure continuity when he retires. “Invest in what you understand most and be passionate about the same. Don’t enter into business hoping for quick profit; always remember that your clients are your bosses and you are accountable to them; their decisions define whether you will make profit or losses,” advised Mr Vora as we parted. Sciuri@ke.nationmedia.com

BUSINESS DAILY | Tuesday April 7, 2015

Tuesday April 7, 2015 | BUSINESS DAILY

ENTERPRISE

PEOPLE | IDEAS | NEWS

Tech ent≥ep≥eneu≥ unlocks ma≥kets fo≥ poo≥ fa≥me≥s AGRICULTURE M-farm gives farmers platform

to connect to buyers, cutting out middlemen where Ms Abass is currently the chief executive officer (CEO). The company runs an online plats an avid reader, Jamila Abass came across many stories of chal- form dubbed M-farm that now boasts lenges facing Kenya’s agricultural of over 10,000 registered farmers from sector, from food insecurity to farmers 100 in 2011. earning little from their produce. Through the portal, the company is What concerned her was how man- able to organise farmers into groups alufacturing companies and retailers lowing them to fetch competitive prices by selling in bulk. struggled to get adequate “If each person works supplies from farms and alone, it becomes hard to farmers lacked markets. If each pe≥son access markets or attract Ms Abass who studied big buyers looking for volcomputer software engiwo≥ks alone, it neering decided to use her umes of farm produce,” becomes ha≥d to information technology she said. access ma≥kets o≥ skills to connect farmers to Due to the connection att≥act big buye≥s they have with farmers buyers directly, cutting out the middlemen who offer looking fo≥ volumes through the M-farm platform, Ms Abass notes that low prices. of fa≥m p≥oduce they are able to monitor With her two friends, JAMILA ABASS, TECH their crop cycle and predict the 30-year-old developed how much each group will a business plan for an onENTREPRENEUR line agricultural portal that harvest, making it possible sought to close the information gap be- to easily link them to markets. tween the farmers and the market. M-farm has turned into a success, In 2010, they won a Sh1,000,000 signing contracts with exporting firms (€10,000) capital investment prize at and local companies such as Fresh and the IPO48 competition—a two-day Crips, and Naivas supermarkets. boot camp aimed at giving technology “They give us orders. We buy from enthusiasts a platform to launch their our farmers’ groups and deliver the web or mobile start-ups. farm produce to the companies. Then Their start-up emerged top out of the the companies pay us a commission 37 participants. With the money, the trio fee,” she said. founded the M-farm Company in 2011, Since low yields and poor quality BY SARAH OOKO

Successful business owners turn their own luck by working hard, remaining focused on their goals and taking steps to where they are considered lucky. File

Keep jumping until that g≥eat chance finds you in the ai≥ their goals, and as columnist Sunny Bindra wrote, “no one wants to say I made it because I happened to be in the right place at the right time doing the right thing.” Yet still being in the right place at the right time is not purely a matter of chance. You have got to make a choice to be somewhere at some time to have a chance. I like the analogy of a young man who wanted BY MURORI KIUNGA to excel in business. He went to a seasoned entrepreneur, reputed not only for his vast investment ne question many people ask often is but also for his business acumen. whether good luck plays any crucial role He asked advice on how to succeed in busiin success of a venture. The other side of ness. “You must jump at every opportunity that the question is whether bad lack can drive you out arises to make money,” the aging guru advised of business and condemn you to eternal failure. sagaciously. Several schools of thought argue that business The spirited youth almost jumped out of his success comes from developing a good product, office as if to pounce on an opportunity — quite marketing it better than your competitors, pre- overwhelmed that he had discovered the key to dicting trends, analysing data, as well success. However, a pertinent quesas crafting executing fine strategies. tion arose quite timely, “but sir, how Many successful Quite remarkably we have successdo I know when an opportunity arispeople talk ful entrepreneurs who do not adhere or es?” he asked. have a clue about this logical approach. The business wizard answered: about how sma≥t We have successful people who have “You can’t tell my son. You have to o≥ how ha≥d used a path that cannot be replicated keep jumping until an opportunity they toiled o≥ nor attributed directly to their extraorfinds you in the air.’’ pe≥seve≥ed dinary efforts. The opponents of this The point where coincidence school of thought argue that if success stops and good luck begins, or in was that simple, the mystery of entreother words how just happening to preneurship would have been scientifi“be in the right place at the right time” cally or otherwise unravelled long time ago. can so dramatically change your life for better is But then how do I explain situations where very thin. But one things is crystal clear—the more some entrepreneurs seem to have a Midas touch you keep jumping the higher the chance that an on everything they do. Someone starts a small opportunity will find you in the right place at the business and within a short time they have man- right time. You have got to be in so many places aged to have their products approved by Kenya all the time to increase the chances of being in the Bureaus of standards, they have secured shelves right place at the right time. This does not mean doing so many businesses. in major supermarkets and have hired the most qualified and dedicated staff. A person with no It does mean doing one thing in many ways all apparent impressive past record or connections the time until you find the one that works well. manages to get the usually hard to get government For example you can increase your online and off contracts and within a matter of years, they have line exposure, use different marketing strategies spread the wings across the borders. and reach out to more prospects to increase your How do really explain a situation where a be- chances of hitting the jackpot. When you eventulow average graduate gets a well-paying job im- ally hit, many people will say you were lucky. mediately after college while her above average Mr Kiunga is a business trainer and the author colleagues toil for years without a job? Many successful people talk about how smart of “The Art of Entrepreneurship: Strategies to or how hard they toiled or persevered to attain Succeed in a Competitive Market.”

Jamila Abass, founder of M-farm, an agriculture portal that helps farmers sell their produce. PHOTO/COURTESY

produce are major contributors to losses incurred by small-scale farmers, the M-farm platform educates farmers on new agricultural technologies and tips for growing various crops that meet market demands. “Farmers can also get in touch through the platform or by mobile phone to seek solutions for unique farming challenges that may be bothering them,” she said. M-farm also provides up-to-date

market prices through an app or SMS, direct to farmers at a cost. The prices help farmers make decisions on which markets to target. Another income stream for the company includes yearly subscription fees it charges farmers registered on the M-farm platform. Ms Abass said that developing a web portal and pulling users to it is just a small part of any business dealing with online platforms. To

How to ﬁgu≥e out a company’s voice

ne of the biggest branding mistakes companies make is not paying enough attention to their tone of voice. “Voice” is one of those concepts that may sound better suited to the literary world than the business world. In literature, it refers to how you come across in your writing. In marketing, your tone of voice can be a significant differentiator. Companies spend a great deal of time on logos, colour selection and other cues they think of as “branding”—the look and feel of their website, collateral and signage. But very few take the time to consider the benefits of employing a unique voice. Consider this: If you were to mask the logo on your website, would you sound unique? Or would you sound like everyone else (i.e., your competitors)? Your tone of voice isn’t about what you say but how you say it—and it’s about the impression your brand leaves on customers. Developed correctly, your tone of voice can be the secret sauce in your content recipe.

1.Deﬁne what makes you you Marketers call this developing a “brand po-

sitioning statement” or “mission statement.” Whatever you call it, the idea is to define who you are. Or, as Dr. Seuss wrote, “Today you are you, that is truer than true. There is no one alive who is youer than you.” He wasn’t talking about marketing, but he might as well have been. Ask yourself these key questions: “What’s unique about your business?” “What’s special about your products?” “What’s special about the way you do business?” “What’s your company culture like? (Are you buttoned-up or playful?)” “How do your employees relax together? (Do you play beer pong in the parking lot or have morning yoga sessions?)“ This should help you come up with a few keywords that best define who you are. But go beyond the generic. “Don’t fall into the trap of choosing trite, nondifferentiating factors such as ‘friendly,’ ‘honest,’ ‘reliable’ and so on as brand values,” says Andrew Bredenkamp, founder and chairman of Acrolinx, a software platform that helps companies hone their tone of voice. Such attributes are just

one big duh, or “the least you would expect from any company,” he says. “They may be important to your service, but they won’t help you create a distinctive tone.” It’s also wise to avoid buzzwords and clichés like “cutting-edge,” “proactive” or “revolutionary.” “If you’re looking to be different, they put you at a disadvantage right from the start,” Mr Bredenkamp notes. Instead, identify more descriptive terms that reflect specifically who you are and how you wish to be perceived. Translate those words into a style. Abstract attributes in isolation don’t mean much, so develop some detail around them. Make them real and practical. For example, if one of your brand values is “creative,” what exactly do you mean? When and how are you creative? How does your creativity help clients? Or, if one of your brand values is “unusual,” what exactly does that mean? Flesh out those words with a few sentences or a story. 2.Write it down. I almost said “create a style guide,” but I worried I’d lose those of you who might think

Let your business speak for itself through the impression it leaves to customers . FILE such a notion would be pedantic—especially for growing, scrappy businesses. But I think it’s important for entrepreneurs. Often, the brand voice of an organisation grows organically from the founder’s personality and values. That’s great, but what happens when the company grows ? That’s when you’ll be glad you wrote all this stuﬀ down. So what goes into a style guide? Start with

be successful, she said that one needs to focus on ‘entertaining’ the users so that they don’t abandon the platform. M-farm achieves this through continuous research and innovations geared towards meeting farmers’ needs. “We go to the ground almost every week to identify gaps or challenges that farmers are facing,” said Ms Abass. The company is now in the final stages of developing a precision agriculture online tool, which will digitally ‘walk’ with farmers from the time they plant until when harvests are made. “If they are planting tomatoes, for instance, they will just click on the platform. It will then provide practical information on what they need to do at each stage of the crop cycle such as when to prune, weed, apply fertilisers and manage pests,” the CEO of M-farm said. These strategies have seen the company expand over the last five years whilst increasing its profit margin and attracting more clients. M-Farm’s success also led to Ms Abass winning the 2015 prestigious Aspen Fellowship Award, which provides the entrepreneur with a platform for sharing her knowledge and experience, to help curb global food insecurity. She attributes the company’s success to persistence, patience and passion for work. “These are the 3 Ps that help startups succeed,” she said. She advises entrepreneurs to avoid being crippled by the fear of failure. “Just give the business your best and stay optimistic.” sooko@ke.nationmedia.com

some of the basic information noted above, and add from there. A couple of important points to spell out: Pronouns. Companies tend to be all over the map with these, using the first person (“we” and “us”) in one sentence and the third person (“Abbading Inc.”) elsewhere. First person tends to be warmer and create a more accessible tone, while third person tends to feel more detached and paternal. Pick one based on your brand voice and stick with it. The same goes for your audience: Use “you” or “customers” consistently. Jargon. I used to take a hard line against jargon and insider language—as in, don’t use it. But lately I’ve rethought that rule, because jargon can sometimes include key phrases that are necessary to signal a shared mindset. Be sure to use only terms that clarify rather than obfuscate. Sweat the small stuff. Don’t think about your voice only in the most obvious places, like your website’s homepage and your Facebook page. Take it further. Consider how you can use your voice as a differentiator in surprising places, like on your 404 page, email confirmation or “Thank You” page.

MANAGEMENT

Managing change in you≥ business need not be messy

“If you focus on results, you will never change. If you focus on change, you will get results.” – Jack Dixon BY SRIRAM BHARATAM

re you struggling to wake up 30 minutes earlier than you have been waking up all your life? Trying to take your dog for an evening walk, something you’ve never done? Trying to move to a new ERP System? If yes, then worry not, you are one among the many millions of people who are going through the turmoil of change. If change management is not part of your life or your business’s growth strategy, you are walking the wrong path. To remain relevant as leaders or as a business, we need to constantly manage change, re-evaluate ourselves, our products, services, business model, the impact we have on our clients, our employees and even the community at large. But, most of us prefer or worse accept the way things are happening and stay in our comfort zone, either avoiding to change or postponing the change. As humans, we fear the unknown, it is always uncomfortable. We assume change is messy. Workplaces are changing, their role and nature are becoming increasingly dynamic. That makes it even more important for you to brace up yourself and your employees to be prepared to manage change more eﬀectively. This means workplaces, work management, work processes and work styles have to undergo change, by whatever name you choose to call it —re-engineering, rightsizing, restructuring, or turnaround. Not everyone in the workplace will accept changes without negativity. It is your leadership and preparedness to handle such change that will pave the way out and to get everyone on board. If you take a look at successful businesses and understand their strategies, you will see that they have paid a great deal of attention to change management, which is why driving proﬁtability consistently comes easily to them. We have a few tips that will ensure that this process is not a burden for you:

Recognise that change is constant -ENTREPRENEUR

it’s just that we need to recognise the change. Imagine how the ﬁrst born child adapts to change when the subsequent ones arrive and learn to share the toys, the love, the attention that was all theirs (albeit a few quarrels and complaints). Our careers and jobs and business are no diﬀerent. Recognising that change is constant helps us be more prepared to manage it. Wise men have always quoted that “the more we understand that change will happen, the less upset and surprised we will be when we encounter that change”

Life teaches us naturally to change,

Understand the change The main obstacle to change is the fear of the unknown. Why not deal with the demon by understanding it. Make an attempt to understand what drives the change and what drives people to change. Recognise the patterns, the movements and the situations. This understanding gives you a direction to deal with the change itself more comfortably.

Get rid of bad choices and keep the good ones Whether it is people or habits, you must keep the bad inﬂuences away. Certain people can demoralise you and stop you from changing and just pull you down. Some of your negative habits can fuel this. Eliminating them as you handle change will increase your chances of winning over the change.

Be optimistic and positive Do not worry about the things you would have to handle as part of the change. Instead look at the change as an opportunity to pick a new skill or dust your skill out or simply put to use the years of experience you amassed. Encourage your team also to constantly keep refreshing their skills.

Frame the big picture in your mind Change can be scary if you look at it from in its narrow perspective. Look for the big picture, look for what good it can do for you in the long run and in the larger perspective. Frame that in your mind and adapt it to manage change. Experts say that change management must become a part of your corporate culture for it to be smooth. The first step is the most difficult one, but with courage, patience and persistence, you can avoid the mess and reap the benefits. Mr Bharatam is the founder and chief mentor of Kuza Biashara Limited, a capacity building organisation coaching youth and SME owners in Kenya. He also chairs Entrepreneurs’ Organisation for Africa. sri@kuzabiashara.co.ke & via twitter @Sbharatam

BUSINESS DAILY | Tuesday April 7, 2015

Tuesday April 7, 2015 | BUSINESS DAILY

ENTERPRISE

PEOPLE | IDEAS | NEWS

Tech ent≥ep≥eneu≥ unlocks ma≥kets fo≥ poo≥ fa≥me≥s AGRICULTURE M-farm gives farmers platform

Successful business owners turn their own luck by working hard, remaining focused on their goals and taking steps to where they are considered lucky. File

Jamila Abass, founder of M-farm, an agriculture portal that helps farmers sell their produce. PHOTO/COURTESY

How to ﬁgu≥e out a company’s voice

1.Deﬁne what makes you you Marketers call this developing a “brand po-

MANAGEMENT

Managing change in you≥ business need not be messy

“If you focus on results, you will never change. If you focus on change, you will get results.” – Jack Dixon BY SRIRAM BHARATAM

Recognise that change is constant -ENTREPRENEUR

Life teaches us naturally to change,

BUSINESS DAILY | Tuesday April 7, 2015

ENTERPRISE

PEOPLE | IDEAS | NEWS

Chebet’s ‘new face of Af≥ica’ shines on designe≥ bags PLAN Her desire was to make original chic

bags but ended up with a thriving business BY MARGARETTA WA GACHERU

But one of the biggest problems that hebet Mutai calls herself and she has in her business, WazaWazi, her fashion designs “the new which she registered in 2007 (shortly face of Africa.” She says she after her first child was born) is the wants the world to know that Africa shortage of leather, which she says stands for elegance, beauty, chic and is understandable given Bata makes style — not simply war, starvation, strife leather shoes. But that doesn’t help her and Ebola. solve one of her big challenges—the “We may not have fact that demand for her chic leather bags exceeds big money, but we have her supply. big ideas, imagination The i≥ony is that A business woman and originality which is today, I make my disinclined to let obstadistinctly our own,” says the 31-year-old former living off of dead cles hold her back for very long, Chebet is alWorld Bank employee cows..I neve≥ ways prepared to innoturned ‘bag artist” (and entrepreneur) as she studied design no≥ vate and adapt. “When I now calls herself. do I know how... can’t get enough leather The child of Rift Valley or I don’t have enough CHEBET CHEMUTAI farmers who brought her cash in hand, I go for up knowing how to plant, canvas,” she says, noting weed and harvest crops from an early that she’s been blending materials as age, Chebet says that experience conwell as styles of African design ever vinced her she wasn’t a farmer. Nor since she took the leap of faith, left does she have an affinity for farm her salaried position with the World animals despite having grown up Bank and began to pursue the career around her beloved grandmother’s she is most passionate about which is dairy cows. in fashion and design. “The irony is that today, I make “I never studied design, nor do my living off of dead cows,” she said, I even know how to sew,” says the laughing at the fact that her best bags Kenyatta University (KU) graduate are made out of leather, most of which whose double major was in French she buys from Bata in Limuru. and Economics. But it was apparent

Ms Chebet Mutai, co-owner WazaWazi, a leather designer bags making company at their workshop in Industrial Area . FILE

since her early days at KU that she not only had an eye for fashionable bags, but also had an extraordinary aptitude for marketing as well. “It all began with one bag that I’d bought in Eastleigh for Sh900. It was just plastic, made in China, but my classmate coveted it, so I sold it to her for Sh2,000.” Chebet quickly went back to

Eastleigh and bought ten more bags, which were snatched up just as quickly by other classmates. But after she bought and sold 20 more, she realised those bags no longer appealed to her since they’d been copied and were now everywhere. “So I got a loan form a dear friend and took my ﬁrst trip to Dubai,” she said. These bags also sold well, but

Chebet realised she wanted to make original bag designs of her own. “I was just starting up that side of the business when I got a call from the World Bank to come for an interview.” Chebet had almost forgotten she’d applied “everywhere” for a job after she’d graduated. “I was just about to board a plane to take my third trip to Dubai when the call came.” She went for the interview, got the job of Technical Assistant, a position that took her frequently to West Africa where she met the proudest Africans she’d ever seen. “They were unapologetically African,” she recalls, noting they had that “new face of Africa’ that she now aims to reﬂect in all her designs. She was still selling imported bags at the time. She was then invited to attend a forum for women working in the formal sector who were also entrepreneurs on the side. “That’s when I realised I no longer wanted to split my interests. I quit my salaried position soon after that, went into partnership with a friend and have been designing original bags ever since.” Explaining that WazaWazi, her brand name brings together two Swahili word to mean ‘open minded’, Chebet says open-mindedness is the core of her business philosophy and the basis of her constantly dreaming up new designs as well as new strategies of marketing and distributing her designer bags. Currently, her bags come in all sizes, styles and shapes and include everything from wallets, messenger bags, hand-bags, leather backpacks and even luggage she feels could just as easily be sold in New York as in Nairobi. The easiest place to see them, apart from her leather workshop in Industrial Area, is at the African Heritage shop in the Kempinski Hotel. margarettag@hotmail.com

Five tips to becoming a successful lifestyle ent≥ep≥eneu≥ The Internet has been used by academia since the 1980’s, but in the last 15 years it has become what we know today as 2.5 billion people log onto the Internet every day, and it’s estimated that the number will double in the next ﬁve years For entrepreneurs looking to start or grow a business, the Internet oﬀers a fairly unlimited and mostly untapped customer base. There are many successful lifestyle entrepreneurs, but they are just scratching the surface of the opportunity that’s available. A “lifestyle entrepreneur” is an entrepreneur who makes their living online. They don’t have a physical location or need one to operate. All they need is a laptop and connection to the Internet to manage their business. If this type of entrepreneurship

model appeals to you, here are six steps you can use to become a location-independent lifestyle entrepreneur.

. Pick a profitable target audience I’m not going to give you the standard “choose your niche” advice. While being specific can help, it’s not always necessary. Where niching helps is when you become industry-specific. Idea specific is a lot harder to niche. The more important point is to make sure your “niche,” or target audience, can afford to pay you. Too many entrepreneurs pick a group that interests them but can’t afford their products and services. You are creating a business; there has to be a potential to generate income with whatever audience you pick.

. Build a simple foundation The foundation of a lifestyle entrepreneur’s business is their website. A website, however, will be a constant work in progress and holds too many entrepreneurs back. You don’t need all the fancy widgets and plugins. You don’t need the best looking website in the world. The only way your website hurts you is if it’s too cluttered and confusing. Zen Habits has over a million readers, which proves simple works as long as the content is good.

. Focus on what works for you The Internet has given us access to success. You see successful lifestyle entrepreneurs talking about what’s working for them and you’re tempted to copy. Successful entrepre-

neurs model success. They don’t copy. You have to ﬁgure out what works for you and your business. Just because it worked for someone else, doesn’t mean it will help your business. The best things you can do are to test and learn what works.

. Get exposure and grow your audience Creating a strong social media is one great way to build your audience but there are strategies that could get you better results. Be a guest on podcasts. There are podcasts that get more downloads than radio stations have listeners. Write for large authority sites. Writing for large websites such as the Huﬃngton Post and Entrepreneur have grown my email list from 3,000 people to over 20,000 in less than a year.

. Offer value and charge what you’re worth When you provide value through your free content, people will want to dig deeper. Your paid content is what they turn to. Too many entrepreneurs don’t charge based off of the value they provide. Offer your value by consistently creating free content that’s better than other’s paid content. Charge a fair but profitable price for your premium offerings. Lifestyle entrepreneurs value their time above everything else, so their time is the most expensive service they offer. If this type of business appeals to you, know that it’s possible and profitable. Do your homework and use these five steps to build the kind of business that best supports your life you. -ENTREPRENEUR.COM

Tuesday April 7, 2015 | BUSINESS DAILY

MONEY & MARKETS P R I C ES I R ES U LTS I DATA

Dubai oil explo≥e≥ oﬀe≥s Lamu Basin stake fo≥ Sh2.3bn STRATEGY Milio E&P wants new investor to

fund surveying and drilling in Blocks L20 and L6 thought to have over two billion barrels vestors. Milio E&P owns 60 per cent of Block L6, while FAR and PancontinenA Dubai-based company exploring for tal—both of which are involved in exoil and gas in the Lamu Baploration—hold 24 and 16 sin is seeking new partners per cent, respectively. The to take up stakes in blocks two companies with minorIn total, only ity holdings in the block are estimated to contain over listed on the Australian two billion barrels of oil. 16 wells have Stock Exchange. Milio Exploration and been d≥illed in “New regional evaluProduction (Milio E&P) the Lamu play ation confirms large rewants new partners to finance the surveying and fai≥way to date, serves potential in the drilling in Block L20 and onshore extension of the few of these L6 at a price of more than proven hydrocarbon play penet≥ating .... fairway with both oil and Sh2.3 billion. The firm has appointed gas sources in Block L6…reENVOI CONSULTANTS UK-based Envoi, a consulsource potential in Block L6 tancy on upstream oil and alone is 2.3 billion barrels,” gas industry, to advise on the sourcing said the prospectus prepared by Envoi of the partnership for the Kenyan subfor Milio E&P Kenya. sidiary, Milio E&P Kenya. Milio’s Kenya subsidiary is expect“Milio is offering a negotiable intering the new partners to contribute est in the combined acreage to a stratowards settling their past costs of exploration—which are not disclosed in tegic partner willing to fund the new seismic (exploration) and (drilling of) the prospectus. a well in Block L6 where the potentially The document says details of the very large lead is a primary target,” said partnership can be obtained by interEnvoi in its advisory to prospective inested investors on signing a non-disBY GEOFFREY IRUNGU

closure (or conﬁdentiality) agreement with Milio E&P Kenya. The new partner(s) is also expected to fund a seismic (or geological) survey estimated to cost up to Sh1 billion ($11 million), plus drilling a well in the onshore part of L6, estimated to cost between Sh1.1 billion and Sh1.3 billion ($12-14 million), before May 2016.

Exploration This means Milio Kenya is seeking a partner to inject up to Sh2.3 billion, besides meeting some unspecified costs of past exploration. This is not the first equity sale bid by firms drilling in Kenya amidst tight finance markets following slide in oil prices. Only last week, another exploration firm, Swala Energy, said it had received bids to buy part of its stake in Block 12B near Kisumu. “In total, only 16 wells have been

An offshore oil platform. Milio E&P is looking to sell part of its oil and gas exploration block off the coast of Lamu for ﬁnance survey and drilling works before May Next year. FILE drilled in the Lamu play fairway to date, with few of these penetrating below the tertiary (where most crude can be recovered from reserves). Large areas including the whole of Milio’s Block L20 remain totally undrilled,” said Envoi in the prospectus prepared for investors. Milio has up to May next year to drill a well in L6, giving it time to raise cash and do the actual work in the block. Prospects for the Coast region in terms of having both oil and gas have risen since 2012 when Apache discovered over 52 meters of net gas pay at Mbawa-1. Last year, BG Sunbird-1 well, located some 150 kilometers oﬀshore Mombasa, encountered 14 meters of oil column topped by nearly 30 meters of gas col-

umn. According to the Envoi advisory, L6 has potential for gas which can be used to generate electricity, given that a transmission line has been recently completely in the vicinity. It notes that a discovery of only 50 billion cubic feet could generate as much, or even more, revenue than an oil discovery in the same location with a payback period of 24 months. “Finding gas which, through existing local infrastructure, could quickly and easily provide power to a large undersupplied markets is very commercially attractive,” said the prospectus. Kenya has already conﬁrmed commercial quantities of oil, but production is not expected to start until 2018 at the earliest. girungu@ke.nationmedia.com

Mic≥olende≥ sets aside Sh300m fo≥ SMEs in Nai≥obi estate BY JOHN GACHIRI

Microfinancier Speed Capital has set aside Sh300 million for its newest branch in the populous Kawangware area in Nairobi. The institution said its eighth branch targets small businesses in the area, requiring working capital of up to Sh2 million. “We will be spending over Sh300 million on business borrowers in the region taking working capital of between Sh100,000 and Sh2 million for their business expansion,’’ said chief executive Dan Githua in a statement. ‘‘Speed Capital will cut down the usual loan processing bureaucracy by offering quick financial solutions to the SMEs in this region,” the state-

Speed Capital managing director Daniel Githua . DIANA NGILA ment read in part. The microﬁnacier targets small businesses that need to buy equipment such as food warmers, tea urns and handcarts.

Speed Capital recently said it plans to raise as much as Sh2 billion within the next three years to expand its core business of lending to SMEs that need

quick access to finance. Equity Investment Bank was appointed the transaction advisor for the planned fund-raising. Speed Capital has an asset base of Sh400 million, but it expects this to grow to Sh1 billion by the end of this year and add another three branches over the period. Other microlenders that have also revealed plans to increase capital bases include Sumac DTM and Choice Microfinance. Unaitas Sacco also said that it will increase its lending to SMEs in areas other than agriculture whose returns are more volatile due to fluctuating prices of commodities. “Credit strategy 2015 is an effort to employ various activities that are

aimed at reducing the high level of risk on agri-based loans by moderating the concentration to high-return low risk sectors such as real estate, asset ﬁnance and investment groups,” said Unaitas Sacco’s 2014 annual report. The sacco doubled its asset base in 2014 after it increased membership. This was made possible by the strategic decision to move its base to Nairobi from Murang’a where it was founded. Unaitas Sacco’s total share capital increased to Sh1.44 billion in 2014 from Sh693 million a year earlier as a result of an aggressive membership recruitment drive that has resulted in members increasing by 43 per cent to 200,000 from 140,000 over the same period.

BUSINESS DAILY | Tuesday April 7, 2015

MONEY MARKETS COUNTY&BUSINESS

E Af≥ica’s natu≥al ≥esou≥ces management skills up, says IMF BY GEOFFREY IRUNGU

Eastern African countries are improving ability to manage natural resources, thanks to technical assistance from a group aﬃliated to the International Monetary Fund (IMF), the fund said. The steering committee of the IMF Africa Regional Technical Assistance Centre East (East AFRITAC), which brings together donors and representatives of the countries, said the centre would continue to provide technical support to manage the economies. Kenya, Uganda and Tanzania have already discovered commercial quantities of hydrocarbons which are waiting for exploitation. AFRITAC is assist countries the region to achieve better

operations, payments systems, and economic and ﬁnancial statistics. The steering committee oversees activities and provides guidance on AFRITAC’s operations.

systems for public ﬁnancial management, revenue administration, ﬁnancial sector regulation, transparency and accountability.

Technical assistance The IMF released the statement following a meeting in Kampala, Uganda. The meeting was attended by member countries and representatives of donors including the African Development Bank, the UK, EU, Germany, and the Netherlands, the East African Community and IMF staﬀ. East AFRITAC, located in Dar es Salaam, is one of nine regional IMF technical assistance centres around the world and serves Eritrea, Ethiopia, Kenya, Malawi, Rwanda, Tanza-

Natural-resource wealth

Visitors tour the Ngamia 1 oil well in Turkana county in 2012. Kenya, Uganda and Tanzania have discovered commercial quantities of hydrocarbons. FILE nia and Uganda. The IMF outfit also collaborates with the countries on fiscal analysis, financial sector regulation and supervision, monetary policy and

“They (steering committee) also supported the centre’s (AFRITAC) enhanced work on regional integration and in building capacity to manage member countries’ natural-resource wealth,” said the IMF in a statement. The IMF said the meeting also involved sharing of experiences on economies of the region. “Oﬃcials shared experiences on success stories ranging from developing more robust, accountable and

Investo≥ demand fo≥ EABL’s bond su≥passes ta≥get with Sh9bn bids Issue oversubscribed as beer brewer expected Sh5 billion FINANCE

row. The lead arrangers for the issue were Barclays Bank of Kenya, Barclays The first tranche of East African BrewFinancial Services, CfC Stanbic and eries Ltd (EABL) bond has attracted SBG Securities. over Sh9 billion to far exceed the Sh5 SBG Securities was also the sponbillion target. soring broker. In a statement announcing the reThe transaction counsel were sults, EABL said it hit Sh9,047,350,000 Coulson Harney Advocates while subscriptions against the Sh2.5 billion reporting accountants were Priceminimum needed for the issue to be waterhouseCoopers. a success. The cash is part of a restructurInvestors in the bond will be paid ing of EABL balance sheet in addi12.25 per cent a year as interest (coution to capital expenditure and genpon) for a period of three eral use. years. “It is for general use In terms of tenor and and for capital expendiIt is fo≥ gene≥al ture, replacing our now return, the closest listed government security is a use and fo≥ capital retired commercial paexpenditu≥e, per programme,” EABL’s two-year bond issued in February 2013 at a coupon chief executive Charles ≥eplacing ou≥ rate of 12.8 per cent. Ireland said in an earlier now ≥eti≥ed Due to the oversubcommunication, noting scription, an investor will comme≥cial pape≥ the issue was “part of a not get the full amount series of moves to ensure p≥og≥amme we have a well-structured asked for, but will be allocated 55.285 per cent of CHARLES IRELAND, CEO EABL balance sheet”. the bid amount. In the six months to This means the offer December 2014, EABL’s does not have a greenshoe option, debt costs went up to Sh2.18 billion which allows an issuer to take more compared to Sh2.04 billion in December 2013. By last December, the than the targeted amount if there is short-term borrowing stood at Sh9.67 an oversubscription. billion down from Sh12.54 billion in The fund-raising came only two months after the beer manufacturer June 2014, while bank overdraft fell retired its Sh5.4 billion debut comto Sh566 million from Sh1.75 billion mercial paper taken last year. over the six-month period. EABL’s majority shareholder, DiaPotential investors for the threegeo, has also advanced the Kenyan year paper were required to put in a subsidiary Sh19.5 billion five-year minimum of Sh100,000. loan according to its books. The proposed date for uploading Some analysts have argued that the notes into investors’ central dethe proceeds from the bond are partly pository and settlement accounts is today while the listing date is tomorintended to settle some of the inter-

transparent public financial management systems, revenue administration, strengthened financial sector regulation and supervision frameworks to safeguard financial stability,” said the IMF in the statement. During the meeting, East AFRITAC assessed activities since May 2014 and discussed the operations programme for 2015 to 2020. The steering committee noted substantial scaling up of capacity development activities in support of the East African Community’s economic integration. IMF and other donors said they would increase their contributions in the upcoming programme though they did not disclose how much they paid in the past financial year.

Egypt non-oil p≥ivate secto≥ sh≥inks fo≥ thi≥d month in a ≥ow Egypt’s non-oil private sector shrunk in March for the third month in a row, though at a slower pace than last month’s contraction, with output declining and new orders showing a slight pick up, a corporate survey showed. The HSBC Egypt Purchasing Managers Index showed a reading of 49.6 in March, a milder slowdown than February’s 46.8, but a contraction nonetheless. A reading above 50 indicates expansion and below 50, contraction. February saw the sharpest contraction since September 2013, and the survey showed many of the same trends continuing to weigh on the economy in March, including a weak currency boosting input costs and subdued demand dampening output and employment.

BY GEOFFREY IRUNGU

Outlook

EABL Group managing director Charles Ireland. SALATON NJAU

company loans. “We believe part of the strategy for this oﬀer is to also partially reduce the related party, arm’s length foreign-denominated loan payable in 2017, ” said analysts at Standard Investment Bank.

EABL net proﬁt grew by 11 per cent in the half year to last December, to Sh4.6 billion compared to Sh4.1 billion in the same period in the previous year. girungu@ke.nationmedia.com

“Egypt’s non-oil private sector remained in contraction territory in March, continuing the trend observed so far in 2015,” Markit economist Philip Leake said. “As a result, the outlook for Egypt remains uncertain, with the depreciating pound providing a key source of instability.” For the fourth straight month, Egypt’s non-oil private sector shed jobs in March, with some survey respondents saying employees had left to search for better opportunities. New orders picked up slightly in March after two months of contraction, though some respondents mentioned the negative impact of economic and political insecurity on their order books. Meanwhile, the Saudi Arabia’s stock market rebounded moderately on Monday after an uptick in oil prices, while Egypt became more stable following a bout of heavy proﬁt-taking. -REUTERS

Tuesday April 7, 2015 | BUSINESS DAILY

MONEY & MARKETS GLOBAL

G≥eece moves to quell fea≥s it will default on loans

Asia sha≥es ≥ise afte≥ poo≥ US jobs data

April 24. “It is necessary to restore the Greek economy’s funding ﬂow,” Labor Minister Panos Skourletis told the Greek Ependysi newspaper on Saturday, accusing the country’s lenders of taking advantage of Greece’s funding limits to add pressure on Athens. “Whether the country will meet its external obligations depends on our lenders’ ﬁnal political choices and stance,” he said, adding that pensions and wages were not at risk.

Asian shares rose and the dollar steadied but remained under pressure yesterday, after a dismal US jobs report led investors to pare bets the US Federal Reserve would hike interest rates anytime soon. Major European markets were closed from Friday to yesterday for the Easter holiday, reopening today. Labour Department data showed US employers added the fewest jobs in more than a year in March. The rise of 126,000 jobs was well below expectations for a gain of 245,000 forecast by a Reuters poll of economists. MSCI’s broadest index of Asia-Paciﬁc shares outside Japan rose 0.7 per cent to push to its highest levels since September 2014. Japan’s Nikkei stock average slumped 0.3 per cent, though it pared earlier sharp losses as the yen gave up gains against the dollar. US stock markets were closed on Friday for the Easter holiday, but US stock futures fell after the jobs data, suggesting a lower open on Wall Street later yesterday. US S&P e-mini equity futures were thinly traded in Asian time, and were down 0.7 per cent after shedding one per cent on Friday. The yield on benchmark 10-year Treasury notes, which moves inversely to prices, hit nearly two-month lows of 1.8 per cent on Friday, and stood at 1.829 percent in Asian trading, keeping pressure on the greenback. “The dollar will likely remain pressured for some time on easing expectations for the Federal Reserve’s rate hike in June,” said Park Yu-na, an analyst at Dongbu Securities, after the South Korean won climbed to a two-month high against the US currency.

-REUTERS

AGREEMENT Athens is scheduled to make

$494m loan repayment to IMF on Thursday over the IMF payment, although Greek Finance Minister Yanis Varthe government later denied that oufakis said on Sunday that Greece was its stance. “intends to meet all obligations to IMF Managing Director Chrisall its creditors, ad infinitum,” seeking to quell default fears ahead of a tine Lagarde said in a statement big loan payment Athens owes the after meeting with Varoufakis that IMF later this week. she welcomed his confirmation that the loan payment due would be Following a meeting with the head of the Internationmade on schedule. al Monetary Fund, Va“I welcomed confirroufakis told reporters mation by the minister I welcomed the government plans to that payment owing “reform Greece deeply” confi≥mation that to the Fund would be and would seek to im- payment owing to forthcoming on April prove the “efficacy of the Fund would 9th,” Lagarde said. negotiations” with its She said due dilibe fo≥thcoming gence efforts in Athens creditors. and talks with teams in Greece has not reon Ap≥il 9th ceived bailout funds Brussels over the terms CHRISTINE LAGARDE of Greece’s bailout would since August last year IMF MD “resume promptly on and has resorted to Monday.” measures such as borrowing from state entities to tide The euro zone country is fast it over. running out of cash, but the bailout extended by the IMF, European It offered a new package of reCommission and European Central forms last week in the hope of unBank has been frozen until the leftlocking funds, but has yet to win ist-led government reaches agreeagreement on the proposals with ment on a package of reforms. its EU and IMF lenders. Most urgently, Athens is on the After a first set of planned meashook for a roughly 450 million euro ures failed to impress lenders, Ath($494 million) loan repayment to ens offered a more detailed package on Wednesday. the IMF due this Thursday. The interior minister suggested But it arrived too late to be dislast week the government would cussed at a teleconference with prioritize wages and pensions euro zone deputy finance minis-

IMF managing director Christine Lagarde. AFP

ters. The government is hoping approval of its reform proposals will free up the remaining aid of 7.2 billion euros under its bailout and lead to the return of about 1.9 billion euros in profits made by the European Central Bank on Greek bonds. Greece now has its hopes set on another meeting of euro zone deputy finance ministers on April 8-9, although it is unlikely that a deal could be reached by then. The next meeting of euro zone finance ministers will take place on

Oil climbs afte≥ Saudi A≥abia inc≥eases p≥ices fo≥ c≥ude sales Oil futures climbed more than $1 a barrel yesterday, after Saudi Arabia raised prices for crude sales to Asia for a second month, signalling better demand in the region. International benchmark Brent regained ground after tumbling as much as ﬁve per cent on Thursday, when a preliminary nuclear deal was ﬁnally reached between world powers and Iran. More Iranian oil could enter global markets if that is followed by a comprehensive deal by June. But analysts warned a ramp-up in exports could take months and would likely not happen before 2016. “While clearly a bearish headline,

a ﬁnal deal and full lifting of sanctions still faces a number of obstacles,” Morgan Stanley analysts said in a note. “Even if a ﬁnal deal is reached, we do not expect any physical market impact before 2016,” the analysts said. Brent crude for May delivery LCOc1 touched a high of $56.19 a barrel and was up $1.19 from Thursday at $56.14 by 2.35 a.m. EDT. US crude for May delivery CLc1 was $1.21 higher at $50.35 a barrel, after earlier touching $50.48. There was no settlement in either Brent or US crude futures on Friday as markets were closed for the start of the Easter holiday.

Demand

Brent regained ground after tumbling More Iranian oil could enter global markets by June after comprehensive nuclear deal Increased prices in Asia signal better demand in the region

Despite the sanctions on Iran,

China’s imports from the OPEC producer are set to rise from August as a Chinese state trader has signed a deal with the National Iranian Oil Company to buy more condensate. The world’s top exporter Saudi Arabia kept output steady and cut its official selling prices (OSPs) sharply late last year in a fight for market share during a global supply glut. Its ability to raise prices for April and May suggests its strategy is working, although competition has kept its flagship Arab Light at a discount to Oman/Dubai quotes, analysts said. “There is still competition for the Asia market even though it is also a sign that some of the production

elsewhere is less able to compete in the market right now,” said Shunling Yap, a senior oil and gas analyst at BMI Research. On the supply front, the number of rigs drilling for oil in the United States declined by 11 last week to 802, the smallest drop since December, a weekly survey by oil service ﬁrm Baker Hughes showed on Thursday. Two weeks of small declines in the US rig count have raised expectations that drilling activity is nearing a level that could dent output, bolster prices and coax rigs back to the ﬁeld after a precipitous cull since October. -REUTERS

BUSINESS DAILY | Tuesday April 7, 2015

MARKET DATA Agro Commodities Market Early Morning wholesale commodity prices 2.04.2015 COMMODITY Unit Kg Nairobi Mombasa CEREAL Dry Maize Bag 90 2500 2800 Green Maize Ext Bag 115 3600 5800 Finger Millet Bag 90 7200 7900 Sorghum Bag 90 4000 2700 Wheat Bag 90 LEGUMES Beans Canadian Bag 90 6300 Beans Rosecoco Bag 90 6500 6800 Beans Mwitemania Bag 90 6300 6500 Mwezi Moja Bag 90 6300 Dolichos (Njahi) Bag 90 6800 7650 Green Gram Bag 90 11500 9900 Cowpeas Bag 90 7400 6300 Fresh Peas Bag 51 3800 5000 Groundnuts Bag 110 13000 14080 ROOTS & TUBERS Red Irish Potatoes Bag 110 2300 2500 White Irish Potatoes Bag 110 2400 2700 Cassava Fresh Bag 99 2000 1600 Sweet Potatoes Bag 98 3600 3100 VEGETABLES Cabbages Ext Bag 126 2800 4100 Cooking Bananas Med Bunch 22 540 800 Carrots Ext Bag 138 4200 6400 Tomatoes Lg Box 64 5500 5200 Kales Bag 50 3000 4000 Onions Dry net 13 900 1000 Spring Onions Bag 142 2200 3800 Chillies Bag 38 3400 3800 Cucumber Bag 50 2300 1500 Capsicums Bag 50 3000 2500 Brinjals Bag 44 2000 2200 Cauliﬂower crate 39 2800 5070 Lettuce Bag 51 2400 2700 FRUITS Passion Fruits Bag 57 4800 5000 Ripe Bananas Med Bunch 14 640 450 Oranges Bag 93 3500 3000 Lemons Bag 95 2600 3200 Mangoes Local Bag 126 2700 Mangoes Ngowe Sm Basket 25 1100 1400 Limes net 13 900 900 Pineapples Dozen 13 720 900 Pawpaw Lg Box 54 2000 900 Avocado Bag 90 2600 3000 OTHERS Eggs Tray 300 330

Commodities Kisumu

Nakuru

Kisii

Eldoret Marimanti Isiolo

3400 2500 5600 3600

2100 2000 6500 3150

3000

2200 2500 7200 5400

2400 2000 10500 2500 5400

3000 5000 9000 4500

5200

5800

10600 11700 6300 2040 12600

11250 10600 5000 600

13500 9000

3500

2000 1800

3000

2100

1700

2000 2500

3000 350 5000 4500 3600 600 1700

2400 1000 1800 3400 2000 1400 780

800 300 5000 5000 300 600 2500

800 6300 4500 1500 1300 600

400 2000

6400 700 4500

6000 3400

8000 7600 4900 4500 6000 13000 8200 2500 10400 2500 2500 2100 2500 2700 300 5000 3500 3500 1040 1500 1400

6400 6400

8800 7200 11250

10800 7200 4500 12500

13200

2500 3000

350 2500 3000 800 850 1500 3500 3500 3000 3000

2500

3000 300 3000 1600 2500 1800

5000 750 2600 2700 2800

3705 600 3200

600 1200 1600

480 2500 2500

300

280

2400 700 600 650 900 320

LAST NET.CHNG 413.014 -10.13 413.023 -10.13 1059.25 -1.63 823.953 -1.88 318.311 -1.2 323.106 -0.92 223.216 -2.39 218.598 -2.62 139.079 0.73 146.308 0.05 524.235 0.42 485.689 -0.5 179.309 1.02 162.612 0.09 189.046 -0.2 165.53 -1.11 2208.099 9.65 3006.021 9.65 711.594 0.77 589.918 0.29 147.5 -0.76 178.516 1.8 145.94 1.29 182.323 -0.31 558.847 -0.19 270.72 -1.99 512.393 1.4 298.007 -0.77 437.857 -1.92 242.209 -3.31 93.226 -8.89 93.238 -8.89 1897.567 -1.07 1548.261 -11.49 859.035 0.63 279.258 -9.98 361.364 -3.38 117.474 -13.56 4202.127 -1.28 1566.731 -2.2 239.714 -2.85 163.174 -3.76 363.433 0.36 247.39 -0.58 71.391 2.37 71.398 2.41

PCT.CHNG OPEN -46.536 413.014 -46.552 413.023 -17.507 1059.25 -15.804 823.953 -3.855 318.311 -2.995 323.106 -5.458 223.216 -5.88 218.598 1.006 139.079 0.08 146.308 2.212 524.235 -2.437 485.689 1.815 179.309 0.143 162.612 -0.384 189.046 -1.864 165.53 194.393 2208.099 264.638 3006.021 5.465 711.594 1.705 589.918 -1.136 147.5 3.15 178.516 1.852 145.94 -0.564 182.323 -1.076 558.847 -5.484 270.72 7.086 512.393 -2.32 298.007 -8.575 437.857 -8.282 242.209 -9.1 93.226 -9.101 93.238 -20.458 1897.567 -200.999 1548.261 5.348 859.035 -30.946 279.258 -12.658 361.364 -18.434 117.474 -54.573 4202.127 -35.317 1566.731 -7.032 239.714 -6.371 163.174 1.313 363.433 -1.431 247.39 1.656 71.391 1.678 71.398

HIGH 413.014 413.023 1059.25 823.953 318.311 323.106 223.216 218.598 139.079 146.308 524.235 485.689 179.309 162.612 189.046 165.53 2208.099 3006.021 711.594 589.918 147.5 178.516 145.94 182.323 558.847 270.72 512.393 298.007 437.857 242.209 93.226 93.238 1897.567 1548.261 859.035 279.258 361.364 117.474 4202.127 1566.731 239.714 163.174 363.433 247.39 71.391 71.398

An inspector (in white coat) speaks with a Gouda cheese maker at a market at the opening of the Dutch Cheese season. Gouda is one of the most popular cheeses in the world, accounting for 50 to 60 per cent of the world’s cheese consumption.

910 3780 2100 360

13500 5300

1800 400

AFP

Global Commodity Prices Effective date: 2 April 2015

500 800 330

350

CLOSE 459.55 459.575 1076.757 839.757 322.166 326.101 228.674 224.478 138.073 146.228 522.023 488.126 177.494 162.469 189.43 167.394 2013.706 2741.383 706.129 588.213 148.636 175.366 144.088 182.887 559.923 276.204 505.307 300.327 446.432 250.491 102.326 102.339 1918.025 1749.26 853.687 310.204 374.022 135.908 4256.7 1602.048 246.746 169.545 362.12 248.821 69.735 69.72

CURRENCY LAST NET CHNG

CURRENCY

DAILY YIELD EFFECTIVE ANNUAL RATE

OLD MUTUAL

7.41%

7.67%

BRITISH AMERICAN

10.87%

11.48%

CBA

9.00%

9.35%

SUGAR NO5

USD

366.90

8.80

UAP

10.76%

11.36%

COFFEE

USD

173.00

-3.00

ICEA

10.86%

11.47%

COCOA

USD

2762.00

14.00

AMANA

10.72%

11.26%

GENCAP HELA

11.58%

12.09%

PAN AFRICA PESA+

10.46%

11.03%

STANLIB

9.93%

10.40%

RUBBER

LOW 413.014 413.023 1059.25 823.953 318.311 323.106 223.216 218.598 139.079 146.308 524.235 485.689 179.309 162.612 189.046 165.53 2208.099 3006.021 711.594 589.918 147.5 178.516 145.94 182.323 558.847 270.72 512.393 298.007 437.857 242.209 93.226 93.238 1897.567 1548.261 859.035 279.258 361.364 117.474 4202.127 1566.731 239.714 163.174 363.433 247.39 71.391 71.398

MONEY MARKET FUND

AGRO COMMODITIES COMMODITY

Unit Trusts Effective date: 2 April 2015

SOFTS

MSCI Emerging Markets Sector Indices NAME CI-UAE CI-UAE CI-AC AMER. CI-ACAMER. CI-AC AMER.R G. CI-AC AMER.R G. CI-AC AMER.R V. CI-AC AMER.R V. CI-ASIA PAC CI-ASIA PAC CI-C.A/P EX JP CI-C.A/P EX JP CI-C.AP EX JP G CI-C.AP EX JP G CI-C.AP EX JP V CI-C.AP EX JP V CI-ARGENTINA CI-ARGENTINA CI-C.AS EX JP CI-C.AS EX JP CI-C.A EX JP V. CI-C.A EX JP G. CI-C.A EX JP G. CI-C.A EX JP V. CI-BRIC BRIC BRIC GROWTH BRIC GROWTH BRIC VALUE BRIC VALUE CI-BAHRAIN CI-BAHRAIN CI-BRAZIL FREE CI-BRAZIL FREE CI-BRAZIL FREE G CI-BRAZIL FREE G CI-BRAZIL FREE V CI-BRAZIL FREE V CI-CHILE CI-CHILE CI-CHILE G. CI-CHILE G. CI-CHILE V. CI-CHILE V. CI-CHINA FREE CI-CHINA FREE

Netherlands

6000

2600 1350

3500 2700

Cheese inspection

JPY

207.00

1.00

FROZEN OJ CON1 USC

124.85

1.15

COTTON NO2

63.35

0.77

USC

GRAINS

FIXED INCOME FUND GENCAP HAZINA

CURRENCY

BUY

SELL

114.45

110.45

USD

100.97

CORN

USC

385.25

3.50

NABO AFRICA

MAIZE EUR

EUR

155.75

1.25

BALANCED FUND

WHEAT

USC

539.50

11.00

OLD MUTUAL / TOBOA

164.45

175.12

0.06

BRITISH AMERICAN

196.48

202.23 144.94

ROUGH RICE

USD

10.85

OILSEEDS

BA MANAGED RETIREMENT

143.72

AMANA

126.70

ICEA

145.09

156.63 129.50

SOY BEANS

USC

986.25

-3.50

SOY BEAN OIL

USC

30.90

0.21

GENCAP ENEZA

134.19

CANOLA

CAD

461.30

1.00

UAP

11.09

11.64

-8.00

PAN AFRICA CHAMA+

10.73

11.06

PALM OIL

MYR

2264.00

STANLIB NABO AFRICA

METALS & MINING SYMBOL CURRENCY 100 OZ GOLD

132.21

USD

102.90

444.92

EQUITY FUND LAST

NET CHG

OLD MUTUAL

415.25

OLD MUTUAL EAST AFRICA FUND

161.90

171.34

AMANA

127.04

215.86

222.72

USD

1197.60

-10.50

SILVER

JPY

64.00

-1.00

BRITISH AMERICAN

HG COPPER

USC

2.75

-0.01

CBA

170.88

PLATINUM

JPY

4471.00

74.00

ICEA

154.04

166.38

ALUMINIUM

CNY

13390.00

10.00

GENCAP HISA

141.29

136.35

UAP

11.02

11.57

STANLIB

193.23

USD

113.03

100.09

102.47

NABO AFRICA

OIL& GAS SYMBOL

BOND FUND

CURRENCY

LIGHT CRUDE NO 2 HT OIL

USD USD

LAST

NET CHG

49.09

-1.00

1.69

-0.05

OLD MUTUAL BOND FUND BRITISH AMERICAN

143.72

144.94

ICEA

98.05

96.32

UAP

10.79

STANLIB FUND B1

100.44

BRENT CRUDE

USD

55.31

-1.79

GAS OIL

USD

519.00

-14.75

STANLIB FUND A

99.76

NATURAL GAS

USD

2.69

0.09

PAN AFRICA PATA+

10.29

10.59

KEROSINE

JPY

53300.00

-1180.00

SHARIAH COMPLIANT SH

119.77

113.78

GENCAP IMAN

Tuesday April 7, 2015 | BUSINESS DAILY

MARKETDATA DATA MARKET

Afte≥ a yea≥ in wa≥, Uk≥aine at financial b≥eaking point Bruised and battered after a year of armed conflict, Ukraine has been crippled by a combination of monetary, budgetary, industrial, banking and energy crises that could make it dependent on outside help for decades. The country has suffered a series of shocks that have obliterated its fragile economy. Its vital heavy industry, in the east, has been completely hamstrung, with production plunging by a fifth — not helped by a sharp decline in steel prices. In addition, with foreign investors fleeing the uncertainty, the value of the local currency, the hryvnia, has fallen by around 50 per cent since the beginning of the year. “Like many emerging markets, this has a direct effect on households, businesses and public finances, because both private and public debt is denominated in foreign currency,” said Julien Marcilly, chief economist at insurance firm Coface.

Suffering Gross domestic product contracted 6.8 per cent last year, according to official statistics and the central bank is bracing for a decline of as much as 7.5 per cent in 2015. Ukraine is also suffering a debt crisis, with its proportion of public debt to gross domestic product (GDP) expected to spiral to 94 per cent this year, according to the International Monetary Fund — from a healthy 40 per cent in 2013. “There is a banking crisis, a monetary crisis and an economic crisis that translated into a strong contraction of GDP last year. This year, there will probably also be an energy crisis,” said Francis Malige, managing director for Eastern Europe and the Caucasus at the European Bank for Reconstruction and Development. The international community, desperate to avoid a collapse in the Ukrainian economy that could be a propaganda coup for Russia, has rushed to its aid. In April 2014, the IMF sketched out a bailout plan worth some $17.5 billion to come in a series of tranches — $5 billion of which has already been paid out. This is part of a package of $40 billion pledged by the international community to help Ukraine back on its feet. The European Union has offered Ukraine about 1.6 billion euros ($2 billion) in short-term assistance and put together a wider package worth about 11 billion euros. Ukraine has encountered huge difficulties in borrowing on the open market, raising only small sums over short periods of time. -AFP

ACTIVE COUNTERS Scan Group

Williamson Tea 280.00 0.00%

Jul ‘14

Mar‘15 81.36 3.44 2.50%

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

Kakuzi Uchumi Kenya

46.00 0.00%

Jul ‘14

Mar‘15 2.70 17.04 0.87%

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

EABL Eaagards

280.0018.80 Kenya Kenya 0.00% 2.17%

Kenya

Jul ‘14

Kenya

Mar‘15

244.00 33.75 7.49% 4.65%

Jul ‘14

Mar‘15

8.171.35 Earnings Earnings share perper share 13.93 34.27 Price to earnings ratio (p/e) Price to earnings ratio (p/e) 1.60% 1.34%

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

Mar‘15 23.80 47.23 0.67%

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

CLonghorn &G Kenya

30.25 8.65 -3.20% -0.57%

Jul ‘14

USE All Share

July ‘14

Mar‘15

July ‘14

Mar‘15

Kenya Kenya

Jul ‘14

Mar‘15

43.75 -1.69%

11.75 800.00 0.00% 0.25%

Jul ‘14

July ‘14

Mar‘15 3.65 11.99 1.71%

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

Mumias KPLC Kenya

Mar‘15

14.452.30 0.35% -4.17%

Jul ‘14

Mar‘15

-6.35 per share 42.55 Earnings Earnings per share -1.85 to earnings ratioratio (p/e)(p/e) to earnings 18.80 PricePrice 0.00% YieldYield Dividend 5.31% Dividend

2.23 -1.77 6.48 -1.30 0.00% 0.00%

RSE All Share Rwanda

137.29 0.00%

35,509.88 3.25%

2,668.04 1.84%

July ‘14

48.00 11.88 1.49%

Nigeria

Tanzania

2,071.00 -0.62%

52,158.78 -0.23%

BAT Airways Kenya

Mar‘15

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) 5.344.04 Price to earnings ratio (p/e) Yield 2.64% Dividend Dividend Yield 23.12%

Tracking the markets: Benchmark Index (Latest Data) Africa JSE All Share Index

Jul ‘14

Mar‘15

Earningsper pershare share -1.30 8.82 Earnings Pricetotoearnings earningsratio ratio(p/e) (p/e) -25.96 27.66 Price DividendYield Yield 0.00% 2.25% Dividend

Unga 570.00 0.18%

1124.00 0.00%

Mar‘15

July ‘14

Mar‘15

World DJ Industrial

Xetra Dax 11,981.46 -0.17%

17,756.24 0.33%

July ‘14

Mar‘15

July ‘14

Nikkei

HangSeng

Frankfurt

New York

Mar‘15

Mumbai 19,312.79 1.46%

25,275.64 0.77%

July ‘14

Sensex

Tokyo

Hongkong

July ‘14

Mar‘15

28,260.14 1.08%

July ‘14

Mar‘15

BUSINESS DAILY | Tuesday April 7, 2015

MARKET DATA African Indices

Nairobi Stocks

NAME

NSE 20 Share Index

5,196.86 -0.83%

Nairobi

LAST

KENYA

5,196.86

-43.67

-0.83%

LUSE ALL SHARE INDEX

CLOSE 5,240.53

-0.54%

6,136.93

6,103.71

6,136.93

-0.23%

52,299.54

52,446.12

52,158.78

52,281.14

UGANDA

2,071.00

ZIMBABWE

155.89

5,300.00

CFG INDEX

MOROCCO

5,200.00

MALAWI ALL SHR

MALAWI

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

-13.00

-0.62%

2,084.00

-0.12

-0.08%

156.01

21,645.87

-187.32

-0.86%

21,830.96

21,846.73

21,645.87

21,833.19

15,410.89

49.35

0.32%

15,361.54

TANZANIA

2,668.04

48.21

1.84%

2,619.83

NIGERIA

35,509.88

1117.32

3.25%

34,380.14

35,837.39

34,380.14

34,392.56

RSE ALLSHARE IND

EGYPT

8,891.73

-207.60

-2.28%

9,096.90

9,112.29

8,891.59

9,099.33

TUNISIA

5,340.86

25.49

0.48%

5,323.57

5,344.47

5,312.03

5,315.37

RWANDA

137.29

0.00

0.00%

137.29

Weekly Share Report

All Share Index (NASI)

173.39 -1.04%

Nairobi

182.00 177.00 172.00 167.00 162.00 157.00 152.00 147.00 July ‘14

March ‘15

FTSE Pan African Index

1,234.76 0.00%

Nairobi 1500.00 1450.00 1400.00 1350.00 1300.00 1250.00 1200.00 1150.00 July ‘14

March ‘15

Active Active Counters Counters Last fri

Prev fri

Price

Change

Total Shares Traded

Safaricom

16.60

15.85

4.73%

37,651,000

KCB

60.50

0.00%

16,010,300

Equity

51.00

0.00%

11,507,000

British American

26.00

26.25

-0.95%

7,962,100

2.25

2.50

-10.00%

7,780,500

Gainers Prev fri

Net

Counter

Price

Change

Chng

KenGen

10.85

9.95

0.90

9.05%

Umeme

19.00

17.50

1.50

8.57%

Car & Gen

49.50

46.75

2.75

5.88%

Transcentury

18.55

17.55

1.00

5.70%

Sasini

14.35

13.85

0.50

3.61%

Last fri Price

Prev fri price

Net Change

Losers Total

5,240.53

-122.36

ZSE INDUSTRIAL

Counter

LOW

5,240.53

-33.22

ALSIUG

Last fri

HIGH

5,240.53

6,103.71

5,400.00

Mumias

OPEN

52,158.78

5,500.00

Counter

PCT.CHNG

ZAMBIA

JSE ALL SHARE INDEX

March ‘15

NET.CHNG

SOUTH AFRICA

5,600.00

July ‘14

% Chng

24.25

26.00

-1.75

-6.73%

Express (K)

5.60

6.00

-0.40

-6.67%

Eaagads

33.75

35.75

-2.00

-5.59%

Centum Invest.

59.50

63.00

-3.50

-5.56%

7.95

8.40

-0.45

-5.36%

LOCATION

NSE 20 - SHR IDX

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 5.40 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 33.25 HF 147.00 120.00 I&M HOLDINGS 64.50 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 7.60 KQ 30.75 7.90 LONGHORN PUBLISHERS 325.00 225.00 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 76.00 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 17.00 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 DEVELOPMENT 13.75 11.00 8.00 FLAME TREE GROUP HOLDINGS 14.00 5.80 3.00 HOME AFRICA 1500.00 KURWITU VENTURES LTD 1500.00

YTD %

PRICE LAST FRI

PRICE PREV FRI

DAILY PRICE CHANGE

SHARES TRADED LAST WEEK

SHARES ISSUED

MKT CAP. KSHS MN

EPS LATEST 12MNTH

P/E TRAILING

PBV TRAILING

DPS LATEST 12MNTH

TOTAL DIVIDEND YIELD

-23.21% 55.56% -5.11% 45.78% 0.00% 11.67% 12.90%

33.75 280.00 130.00 1124.00 27.50 14.35 280.00

35.75 277.00 130.00 1124.00 27.50 13.85 287.00

-5.59% 1.08% 0.00% 0.00% 0.00% 3.61% -2.44%

125,900 2,900 10,200 18,200

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

1,085.3 5,488.0 508.6 1,348.8 1,650.0 3,272.6 2,451.8

-1.30 8.17 32.21 23.80 5.85 0.54 81.36

-25.96 34.27 4.04 47.23 4.70 26.57 3.44

2.70 1.89 0.37 5.47 0.74 0.52 0.39

0.00 3.75 5.00 7.50 0.00 0.25 7.00

0.00% 1.34% 3.85% 0.67% 0.00% 1.74% 2.50%

-8.33% 22.45% -8.33%

49.50 12.00 5.65

46.75 11.95 5.65

5.88% 0.42% 0.00%

1,000 2,300 212,500

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

1,985.1 172.7 1,572.6

6.57 -11.90 -0.24

7.53 -1.01 -23.54

0.95 0.44 0.67

0.60 0.00 0.00

1.21% 0.00% 0.00%

-1.50% 1.61% 2.98% 4.00% -17.49% 3.25% 6.14% -3.03% 3.48% 2.99% 6.25%

16.55 126.00 239.00 51.00 37.50 127.00 60.50 24.00 55.50 338.00 21.00

17.25 125.00 241.00 51.00 37.50 125.00 60.50 24.50 58.50 337.00 21.00

-4.06% 0.80% -0.83% 0.00% 0.00% 1.60% 0.00% -2.04% -5.13% 0.30% 0.00%

8,105,500 47,700 654,100 13,544,800 301,800 432,200 11,145,200 123,200 527,300 187,000 2,773,000

5,431,536,000 395,321,638 220,100,096 3,702,777,020 235,750,000 392,362,039 2,984,227,692 280,000,000 639,945,603 309,159,514 4,889,316,295

89,891.9 49,810.5 52,603.9 188,841.6 8,840.6 49,830.0 180,545.8 6,720.0 35,517.0 104,495.9 102,675.6

1.54 14.38 21.92 4.55 4.21 13.56 5.63 3.11 7.07 33.21 1.64

10.75 8.76 10.90 11.21 8.91 9.37 10.75 7.72 7.85 10.18 12.80

2.78 2.16 2.51 3.66 1.45 2.27 2.82 0.55 1.71 2.89 2.39

1.00 6.15 2.40 1.80 1.50 2.90 2.00 0.00 1.00 17.00 0.50

6.04% 4.88% 1.00% 3.53% 4.00% 2.28% 3.31% 0.00% 1.80% 5.03% 2.38%

-9.68% 0.00% -6.90% -5.95% -6.84% 1.66% 10.07% -8.78% 0.50%

5.60 20.25 7.95 8.65 235.00 46.00 35.75 33.75 10.50

6.00 20.25 8.40 8.75 244.00 46.50 37.75 33.50 10.85

-6.67% 0.00% -5.36% -1.14% -3.69% -1.08% -5.30% 0.75% -3.23%

54,600 770,600 207,700 78,400 16,700 1,400 29,900 108,400

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

198.3 7.3 11,896.9 2,108.4 44,307.4 17,427.8 2,921.9 6,148.4 3,832.1

0.01 -18.34 -2.25 1.62 13.10 2.70 2.57 3.45 1.45

560.00 -1.10 -3.53 5.34 17.94 17.04 13.91 9.78 7.24

1.00 #DIV/0! 3.80 1.17 5.42 2.13 1.61 0.56 0.95

0.00 0.00 0.00 2.00 10.00 0.40 0.50 1.35 0.30

0.00% 0.00% 0.00% 23.12% 4.26% 0.87% 1.40% 4.00% 2.86%

-8.72% 15.11% 7.21% -1.23% 1.72%

80.00 159.00 119.00 15.95 59.00

79.50 160.00 119.00 15.50 57.00

0.63% -0.62% 0.00% 2.90% 3.51%

59,300 449,700 115,400 900

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

39,622.0 57,710.5 2,823.5 4,037.3 5,310.0

3.01 9.80 9.01 1.37 -4.30

26.58 16.22 13.21 11.64 -13.72

4.88 1.99 2.07 1.67 1.10

0.60 12.00 1.75 1.00 0.00

0.75% 7.55% 1.47% 6.27% 0.00%

-2.43% 6.32% 23.53% 9.38% -14.29%

10.85 9.00 17.45 24.25 19.00

9.95 9.50 17.95 26.00 17.50

9.05% -5.26% -2.79% -6.73% 8.57%

2,267,800 6,866,900 5,664,600 17,200 294,000

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

23,852.2 13,245.9 34,053.1 4,244.4 30,853.7

1.29 0.74 3.31 2.26 1.34

8.41 12.16 5.27 10.73 14.14

0.35 1.99 0.78 0.83 3.37

0.40 0.20 0.50 0.70 0.90

3.69% 2.22% 2.87% 2.89% 4.75%

-9.24% 2.60% 26.44% 8.50% 7.53% 0.83%

26.00 9.80 570.00 18.80 25.25 125.00

26.00 9.95 570.00 18.80 24.50 128.00

0.00% -1.51% 0.00% 0.00% 3.06% -2.34%

5,199,500 1,247,200 20,100 1,351,500 61,000 31,400

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

50,398.8 25,632.3 34,140.2 13,159.0 13,526.6 12,000.0

1.47 0.43 48.00 4.48 2.15 9.07

17.69 22.79 11.88 4.20 11.74 13.78

2.91 3.17 3.19 0.73 2.56 3.59

0.30 0.10 8.50 0.70 1.00 0.00

1.15% 1.02% 1.49% 3.72% 3.96% 0.00%

3.28% 13.46% -5.68%

59.50 5.80 18.55

63.00 5.90 17.55

-5.56% -1.69% 5.70%

4,737,900 77,700 37,700

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

39,593.8 232.0 5,199.3

4.54 0.38 1.06

13.11 15.26 17.50

1.95 0.29 0.98

0.00 0.00 0.40

0.00% 0.00% 2.16%

19.90

19.95

-0.25%

3,084,800

194,625,000

3,873.0

2.13

9.34

5.31

0.38

1.91%

0.00% 8.00% -12.11% 0.00% 2.60% 5.41% 1.82% 23.08% 11.95%

11.10 133.00 800.00 21.00 321.00 3.90 112.00 2.30 43.75

11.10 135.00 811.00 21.00 324.00 3.95 112.00 2.25 43.50

0.00% -1.48% -1.36% 0.00% -0.93% -1.27% 0.00% 2.22% 0.57%

136,100 96,900 166,100 897,300 21,100 10,498,100 12,900

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

42.6 2,596.9 80,000.0 5,351.9 253,838.6 819.0 1,441.2 3,519.0 3,312.3

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

-5.50 11.31 18.80 10.88 39.10 -4.59 746.67 -1.30 11.99

#VALUE! 1.78 10.57 3.24 9.29 2.53 589.47 0.33 0.71

0.00 5.20 42.50 0.30 5.50 0.00 0.00 0.00 0.75

0.00% 3.91% 5.31% 1.43% 1.71% 0.00% 0.00% 0.00% 1.71%

21.00%

16.60

0.00%

44,786,300

40,065,428,000

665,086.1

0.57

29.12

8.30

0.47

2.83%

-21.95% -

11.40 9.25 3.25 1500.00

11.50 9.55 3.20 1500.00

-0.87% -3.14% 1.56% 0.00%

8,900 194,800 2,874,100 -

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

4,936.9 1,497.3 1,317.1 153.4

-0.04 0.92 0.05 -62.40

-285.00 10.05 65.00 -24.04

0.00 0.92 0.00 0.00

0.00% 9.95% 0.00% 0.00%

#DIV/0!

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

Tuesday April 7, 2015 | BUSINESS DAILY

MARKET DATA

MARKET DATA Equities & Bonds Kenya Treasury and Infrastructure Bonds

Share Price Performance Scorecard SCORECARD AS AT 2ND APRIL 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 11.40 78.50 160.00 16.45 798.00 135.00 27.00 49.50 21.75 63.00 126.00 9.85 21.25 119.00 242.00 16.00 59.00 32.25 316.00 52.00 3.90 5.60 9.20 280.00 20.25 3.20 37.75 127.00 569.00 280.00 130.00 112.00 10.05 8.10 60.50 9.25 17.85 18.50 1500.00 25.00 1124.00 8.70 12.00 2.40 19.90 245.00 24.00 59.50 5.90 121.00 27.50 17.00 5.50 14.35 46.00 38.25 345.00 26.25 33.75 18.25 10.10 44.50

CLOSE 11.10 11.40 80.00 159.00 16.55 800.00 133.00 26.00 49.50 21.00 59.50 126.00 9.80 21.00 119.00 239.00 15.95 59.00 33.75 321.00 51.00 3.90 5.60 9.25 280.00 20.25 3.25 37.50 127.00 570.00 280.00 130.00 112.00 10.85 7.95 60.50 9.00 17.45 18.80 1500.00 25.25 1124.00 8.65 12.00 2.30 19.90 235.00 24.00 55.50 5.80 125.00 27.50 16.60 5.65 14.35 46.00 35.75 338.00 24.25 33.75 18.55 10.50 43.75

% 1D 0.00 0.00 1.91 -0.62 0.61 0.25 -1.48 -3.70 0.00 -3.45 -5.56 0.00 -0.51 -1.18 0.00 -1.24 -0.31 0.00 4.65 1.58 -1.92 0.00 0.00 0.54 0.00 0.00 1.56 -0.66 0.00 0.18 0.00 0.00 0.00 7.96 -1.85 0.00 -2.70 -2.24 1.62 0.00 1.00 0.00 -0.57 0.00 -4.17 0.00 -4.08 0.00 -6.72 -1.69 3.31 0.00 -2.35 2.73 0.00 0.00 -6.54 -2.03 -7.62 0.00 1.64 3.96 -1.69

% 5D 0.00 0.88 -3.03 -0.62 -2.07 -1.23 -1.48 0.97 5.88 0.00 0.00 0.00 -1.01 0.00 0.00 -2.05 4.25 0.00 -8.78 -1.23 2.51 -2.50 -6.67 -3.65 7.28 0.00 3.17 -1.96 0.00 -0.18 11.11 0.00 0.00 1.88 -10.67 0.00 -7.69 -2.79 0.27 0.00 1.00 0.00 -1.14 0.42 -2.13 1.79 -4.47 -1.03 -6.72 0.00 -3.10 0.00 0.91 -1.74 4.74 3.37 -5.30 -0.59 -7.62 1.50 4.51 -2.33 -0.57

% 1M 0.00 -0.87 -8.57 0.63 -3.78 -7.62 -2.21 -11.11 4.76 -12.50 -0.83 -3.08 -12.89 -5.62 -16.78 -4.02 -1.85 -1.67 -14.01 5.94 -4.67 -4.88 -11.81 -0.54 -6.67 0.00 -10.96 -4.46 0.79 5.56 -15.15 -7.80 -2.61 -11.43 -19.70 1.68 -12.20 -2.24 3.58 0.00 2.02 0.90 -3.89 0.00 -14.81 2.58 -9.27 -4.95 -13.28 -6.45 -3.10 0.00 6.07 -8.87 -7.42 -8.91 -20.11 -3.98 -15.65 -2.17 3.06 3.45 -8.38

% 3M 0.00 -7.32 -6.98 14.39 -1.19 -11.21 6.40 -12.61 -8.33 -4.55 -3.25 1.61 -2.00 7.69 7.21 0.84 1.59 1.72 -19.64 6.29 0.99 0.00 -9.68 12.12 12.90 0.00 -21.69 -19.79 1.60 26.67 55.56 -5.11 1.82 6.90 -8.62 6.14 4.65 22.46 10.59 0.00 8.60 45.78 -10.82 22.45 17.95 -4.10 -17.54 -3.03 -3.48 1.75 4.17 0.00 17.31 -5.83 10.38 2.22 2.88 1.20 -7.62 -8.78 -4.87 0.48 10.76

% 6M 0.00 -8.57 8.16 -3.22 -15.70 -6.34 -21.21 7.61 -22.94 -3.25 -0.79 -14.78 -3.45 3.48 -13.09 5.28 -19.73 -15.63 13.03 2.51 -14.29 -32.93 1.82 0.00 0.00 -22.28 -8.63 14.23 30.23 -7.80 27.27 6.90 -14.52 3.42 -3.23 21.18 3.30 12.22 27.73 -69.11 15.38 15.00 -10.56 -24.19 -10.28 -29.30 -16.55 1.63 0.00 30.20 -15.67 -0.69 8.88 3.62 1.20 -3.00 -4.93 0.00 1.45 13.64

% 1Y 0.00 -9.09 -20.90 0.61 33.33 -5.00 44.44 59.68 -32.80 67.61 17.76 0.00 5.00 41.67 6.22 0.00 -29.76 16.38 20.22 61.90 11.43 24.44 -3.45 0.00 0.00 8.70 0.00 86.89 150.00 -9.72 2140.00 -10.33 -39.31 31.52 -12.20 20.76 1.08 52.11 81.29 -33.46 20.00 -30.30 -24.44 -11.93 -13.95 30.34 5.04 0.00 33.87 -18.71 -16.57 -4.66 23.28 8.68 3.19 -22.41 0.00 -28.08 86.17

Corporate Bonds APRIL 2, 2015

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE ISSUE

MATURITY

DATE

APRIL 2, 2015

ISSUED VALUE

COUPON

AV. TRADED

IN MILLIONS

(%)

YIELD (%)

TOTAL VALUE NUMBER OF (KSHS)

TRADES

ISSUE NO. TWO YEAR BONDS FXD 1/2013/2YR

25-FEB-13

23-FEB-15

20,445.00

12.844

FXD 3/2013/2YR

26-AUG-13

24-AUG-15

17,927.40

12.939

FXD 4/2013/2YR

24-DEC-13

21-DEC-15

25,251.00

11.553

FXD 1/2014/2YR

24-MAR-14

21-MAR-16

20,000.00

FXD 2/2014/2YR

26-MAY-14

23-MAY-16

20,130.15

10.793

10.6544

5,600,000

FXD 3/2014/2YR

22-DEC-14

19-DEC-16

8,905.12

10.890

10.8000

500,000,000

FXD 1/2015/2YR

23-FEB-15

20-FEB-17

23,592.55

11.470

FXD 1/2010/5YR

24-MAY-10

18-MAY-15

11,924.85

6.950

8.4470

17,050,000

FXD 2/2010/5YR

30-NOV-10

23-NOV-15

14,973.10

6.671

10.3130

58,550,000

FXD 1/2011/5YR

31-JAN-11

25-JAN-16

22,083.10

7.636

10.5098

39,900,000

10.803

FIVE YEAR BONDS

FXD 1/2012/5YR

28-MAY-12

22-MAY-17

31,079.55

11.855

11.2389

422,150,000

FXD 1/2013/5YR

29-APR-13

23-APR-18

20,240.75

12.892

11.0124

285,800,000

FXD 2/2013/5YR

1-JUL-13

25-JUN-18

26,340.05

11.305 11.5870

26,000,000

FXD 3/2013/5YR

25-NOV-13

19-NOV-18

14,937.80

11.952

FXD 1/2014/5YR

28-APR-14

22-APR-19

25,540.95

10.870

FXD 2/2014/5YR

23-JUN-14

17-JUN-19

16,418.25

10.934

24-APR-06

13-APR-15

3,045.25

13.500

FXD1/2006/10YR

27-MAR-06

14-MAR-16

3,451.05

14.000

10.5098

22,150,000

FXD2/2006/10YR

29-MAY-06

16-MAY-16

5,028.10

14.000

10.6451

5,200,000

11.1583

8,900,000

NINE YEAR BONDS FXD1/2006/9YR TEN YEAR BONDS

FXD1/2007/10YR

29-OCT-07

16-OCT-17

9,308.80

10.750

FXD1/2008/10YR

29-OCT-07

16-OCT-17

2,992.75

10.750

FXD2/2008/10YR

28-JUL-08

16-JUL-18

13,504.70

10.750

FXD3/2008/10YR

29-SEP-08

28-SEP-18

4,151.60

10.750

11.3688

5,300,000

FXD1/2009/10YR

27-SEP-09

15-APR-19

4,966.85

10.750

11.4773

8,850,000

FXD1/2010/10YR

26-APR-10

13-APR-20

19,394.15

8.790

12.1477

FXD2/2010/10YR

1-NOV-10

19-OCT-20

18,849.90

9.307

FXD1/2012/10YR

30-JUN-12

13-JUN-22

16,803.75

12.300

12.2121

44,300,000

FXD1/2013/10YR

1-JUL-13

19-JUN-23

24,301.46

12.371

12.3315

457,100,000

FXD1/2014/10YR

27-JAN-14

15-JUL-24

30,520.25

12.180

12.2767

300,000,000

25-SEP-06

11-SEP-17

4,031.40

13.750

11.4875

17,000,000

12.2636

22,150,000

12.5829

31,750,000

12.7446

14,750,000

12.2938

629,400,000

13.7500

250,000

13.1695

1,281,350,000

44,500,000

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

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE ISSUE MATURITY ISSUED VALUE DATE DATE IN MILLIONS

ISSUE NO. CORPORATE BONDS CENTUM BOND SENIOR UNSECURED FIXED RATE AND EQUITY LINKED NOTES 26-SEP-12 18-SEP-17 CTNB.BD.18.09.17/13.50 26-SEP-12 18-SEP-17 CTNB.BD.18.09.17/12.75 CONSOLIDATED BANK OF KENYA LTD MEDIUM TERM NOTE PROGRAMME 30-JUN-12 24-JUL-19 CON.BD-FXD(SN)/2012/7YR 30-JUN-12 24-JUL-19 CON.BD-FXD(SBN)/2012/7YR 30-JUN-12 24-JUL-19 CON.BD-FR(SN)/2012/7YR SHELTER AFRIQUE MEDIUM TERM UNSECURED NOTES 11-JUL-11 7-JUL-14 FR 1/2011/3YR 11-JUL-11 7-JUL-14 FXD 1/2011/3YR 17-DEC-12 14/12/2015 FXD 2/2012/3YR PTA BANK LTD FLOATING RATE BOND 15-OCT-07 31-OCT-14 FR(MTN)/2007/7YR BARCLAYS BANK MEDIUM TERM FLOATING RATE NOTES 19-NOV-07 19-NOV-14 FR (MTN)/2007/7YR 14-JUL-08 14-JUL-15 FXD (MTN)/2008/7YR 14-JUL-08 14-JUL-15 FXD (MTN)/2008/7YR MRM 27-OCT-08 3-JAN-17 FR (MRM) 2008/8YR 27-OCT-08 3-JAN-17 FXD (MRM) 2008/8YR CFC STANBIC BANK SENIOR & SUBORDINATED BOND ISSUE 7-JUL-09 7-JUL-16 FR (CFC STANBIC) 2009/7YR 7-JUL-09 7-JUL-16 FXD (CFC STANBIC) 2009/7YR 27-DEC-10 22-DEC-14 FXD2 (CFC STANBIC) 2010/4YR 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 FXD2 (SAFARICOM LTD) 2009/5YR 20-DEC-10 20-DEC-15 FR2 (SAFARICOM LTD) 2009/5YR HOUSING FINANCE MEDIUM TERM NOTE 22-OCT-12 14-OCT-19 FXD (HFCK) 02/2012/7YR 26-OCT-10 2-OCT-17 FR (HFCK) 2010/7YR 26-OCT-10 2-OCT-17 FXD (HFCK) 2010/7YR I&M MEDIUM TERM NOTE 13-DEC-13 8-MAR-19 FRN I&M-01/13/5.25 13-DEC-13 8-MAR-19 FXD I&M-01/13/5.25 BRITAM MEDIUM TERM NOTE 22-JUL-14 15-JUL-19 BRTB.BD.22/07/19-0037-13 UAP HOLDINGS MEDIUM TERM NOTE 28-JUL-14 22-JUL-19 UAP.BD.22.07.2019 NIC MEDIUM TERM NOTE 8-SEP-14 9-SEP-19 NIC.BD.09/09/19-0039-12.5 2 CIC INSURANCE GROUP LTD. MEDIUM TERM NOTE 8-OCT-14 2-OCT-19 CIC.BD.2.10.2019 2 CFC BANK MULTICURRENCY FIXED MEDIUM TERM NOTE 15-DEC-14 8-DEC-21 CFCB.BD.08/12/21-0042-12.95 2 CBA FIXED MEDIUM TERM NOTE

2,917.10 1,250.80 1480.60 1965.00 1.00 1,416.79 1,083.21 500.00

COUPON (%)

TOTAL VALUE TRADE (KSHS)

NO OF TRADES

13.250 13.600

13,000,000

28-AUG-06

13-AUG-18

3,900.95

14.000

FXD1/2007/12YR

28-MAY-07

13-MAY-19

4,864.60

13.000

FXD1/2007/15YR

26-MAR-07

7-MAR-22

3,654.60

14.500

FXD2/2007/15YR

25-JUN-07

6-JUN-22

7,236.95

13.500

FXD3/2007/15YR

26-NOV-07

7-NOV-22

17,568.00

12.500

FXD1/2008/15YR

31-MAR-08

13-MAR-23

7,830.90

12.500

FXD1/2009/15YR

26-OCT-09

7-OCT-24

9,420.45

12.500

FXD1/2010/15YR

29-MAR-10

10-MAR-25

20,823.73

FIFTEEN YEAR BONDS

13.500 12.500

12.750 12.750

FXD1/2006/12YR

FXD2/2010/15YR

27-DEC-10

8-DEC-25

1,000

FXD1/2012/15YR

24-SEP-12

1.500 1,300 0.700

FXD1/2013/15YR

25-FEB-13

FXD2/2013/15YR

29-APR-13

13,785 6,215

13.000

400,000 400,000

1 1

13,513.10

9.000

6-SEP-27

21,089.45

11.000

7-FEB-28

40,886.33

11.250

10-APR-28

17,385.85

12.000

TWENTY YEAR BONDS FXD1/2008/20YR

30-JUN-08

5-JUN-28

20,360.95

13.750

FXD1/2011/20YR

30-MAY-11

5-MAY-31

9,365.80

10.000

FXD1/2012/20YR

26-NOV-12

1-NOV-32

43,082.72

12.000

9,790 24,020 2,500

12.500 7.250

750,000

15,625.00

12.000

8,125,000

4,287 2,000

7.750

2,969.10 1,167 5,864

13.000

39,900,000

SDB 1/2011/30YR

8.500

8,000,000

INFRASTRUCTURE BONDS

3,429 (182+2%) 226 12.800

31,000,000

8,200,000

6,000

10.250

TWENTY FIVE YEAR BOND FXD1/2010/25YR

28-JUN-10

28-MAY-35

20,192.50

28-FEB-11

21-JAN-41

23,888.95

11.250

THIRTY YEAR BOND

13.000

2000.00

13.000

5514.00

12.500

31,000,000

5000.00

13.000

5080.00

12.950

12.000

14.0000

100,000

IFB 1/2011/12YR

3-OCT-11

18-SEP-23

43,447.35

12.000

11.0167

1,084,950,000

IFB 1/2009/12YR

23-FEB-09

8-FEB-21

19,726.85

12.500

10.8300

17,050,000

IFB 2/2009/12YR

7-DEC-09

22-NOV-21

18,897.65

12.000 10.8000

33,300,000

IFB 1/2010/8YR

1-MAR-10

19-FEB-18

15,908.05

9.750

IFB 2/2010/9YR

31-AUG-10

19-SEP-19

32,871.55

6.000

24,400,000

IFB 1/2013/12YR

30-SEP-13

15-SEP-25

38,841.68

11.000

11.0566

4,100,000

24,000,000

IFB 1/2014/12YR

27-OCT-14

12-OCT-26

35,060.55

11.000

11.3000

200,000,000

IFB 1/2015/12YR

30-MAR-15

15-MAR-27

25,695.35

11.000

11.3941

1,577,600,000

BUSINESS DAILY | Tuesday April 7, 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 92.50 137.16 99.71 7.72 32.24 19.86 7.38 16.74 25.18 73.42 95.85 77.35 10.69 11.55 13.35 1.49 11.93 67.96 24.66 14.92 70.21

SELL 92.67 137.42 99.91 7.74 32.41 20.00 7.48 16.98 25.23 73.59 96.12 77.51 10.72 11.58 13.38 1.49 11.95 68.11 24.70 14.95 70.40

MEAN 92.58 137.29 99.81 7.73 32.33 19.93 7.43 16.86 25.21 73.51 95.98 77.43 10.71 11.57 13.36 1.49 11.94 68.04 24.68 14.94 70.30

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

Europe’s Blue Chips

Currencies

BID 1.09 119.76 1.48 0.96 0.76 1.26 8.63 7.97 1.78 6.87 56.78 2.59 135.25 62.13 3.74 25.31 275.47 23.48 3.95 128.71 1.80 59.99 0.40 11.70 2.24 1.48 7.01 185.65 2.85 0.51 17.38 56.29 3.41 4.06 21.55 110.19 471.85 3.67 107.70 1,558.10 0.10 913.00 100.20 6.20 176.65 97.11 7.63 20.20 3.82 42.60 15.00 7,000.01 685.00 92.75 457.00 84.00 11.93 1.37 9.86 2,900.00 312.00 427.90 37.00 199.00 13.20 200.02 2,025.50 1.54 4,300.00 21,851.00 705.00 11.93 32.46 1.95 1,850.00 2,995.00 603.12 603.12 36.00 11.94 378.00

ASK 1.09 119.77 1.48 0.96 0.76 1.26 8.63 7.98 1.79 6.87 56.98 2.59 135.57 62.15 3.74 25.36 275.79 24.48 3.95 129.55 1.80 60.19 0.40 11.71 2.26 1.49 7.02 185.70 2.85 0.51 17.48 56.87 3.42 4.06 21.60 110.39 474.85 3.67 108.70 1,578.10 0.10 943.00 6.20 97.43 7.63 20.75 3.86 43.60 15.50 7,500.01 697.00 92.85 458.00 85.00 11.96 1.37 9.87 3,004.00 320.00 447.90 37.74 199.10 13.70 201.02 2,035.60 1.54 4,400.00 23,209.00 712.00 11.97 32.48 1.95 1,860.00 3,005.00 610.12 609.12 36.30 11.95 381.00

Based on one day performance in local currency % PERFORMANCE IN LOCAL CURRENCY COMPANY

COUNTRY

INDUSTRY

LAST

CHG % CHG

1-WK

YTD

52-WK

BRITISH AMERICAN TOBACCO

UNITED KINGDOM

TOBACCO

3538.5

1.43

-0.38

1.1

6.25

LLOYDS BANKING GROUP PLC

UNITED KINGDOM

BANKS

79.39

1.11

1.42

0.43

4.7

4.92

CREDIT SUISSE GROUP AG

SWITZERLAND

BANKS

26.55

0.37

1.41

2.31

5.9

-8.39

GLAXOSMITHKLINE

UNITED KINGDOM

PHARMACEUTICALS

1565.5

19.5

1.26

-0.25

13.8

-1.76

BP PLC

UNITED KINGDOM

INTEGRATED OIL&GAS

442.1

5.4

1.24

-0.34

7.6

-8.71

ROYAL DUTCH SHELL A

UNITED KINGDOM

INTEGRATED OIL&GAS

2031

1.15

-0.17

-5.7

-8.08

SANOFI SA

FRANCE

PHARMACEUTICALS

92.93

1.09

1.35

22.8

23.79

SCHNEIDER ELECTRIC SE

FRANCE

ELECTRICAL COMPONENTS&EQUIPMENT

73.11

0.76

1.05

1.36

20.6

13.42

DEUTSCHE BANK

GERMANY

BANKS

32.69

0.33

1.02

3.35

30.8

-1.07

ALLIANZ SE

GERMANY

FULL LINE INSURANCE

163.45

1.6

0.99

32.51

UBS GROUP

SWITZERLAND

BANKS

18.47

0.15

0.82

1.26

8.1

-0.81

BNP PARIBAS

FRANCE

BANKS

57.03

0.46

0.81

1.49

15.8

-0.82

HSBC HLDGS

UNITED KINGDOM

BANKS

578.6

4.6

0.8

0.02

-4.9

-5.61

BT GROUP PLC

UNITED KINGDOM

FIXED LINE TELECOMMUNICATIONS

441.4

3.4

0.78

-2.78

9.9

16.19

BASF

GERMANY

COMMODITY CHEMICALS

93.25

0.7

0.76

1.28

33.4

15.52

ENI

ITALY

INTEGRATED OIL&GAS

16.24

0.11

0.68

1.25

11.9

-10.67

ANHEUSER-BUSCH INBEV

BELGIUM

BREWERS

114.5

0.7

0.62

2.23

48.18

DIAGEO

UNITED KINGDOM

DISTILLERS&VINTNERS

1868.5

0.48

-1.4

1.1

0.92

DAIMLER

GERMANY

AUTOMOBILES

90.15

0.42

0.47

1.9

30.7

29.25

ABB

SWITZERLAND

INDUSTRIAL MACHINERY

20.72

0.09

0.44

1.42

-2

-9.99

L’AIR LIQUIDE

FRANCE

COMMODITY CHEMICALS

120.2

0.4

0.33

0.04

16.9

22.64

NOVARTIS AG

SWITZERLAND

PHARMACEUTICALS

96.45

0.3

0.31

0.26

4.4

29.9

ASTRAZENECA

UNITED KINGDOM

PHARMACEUTICALS

4640.5

0.3

-0.97

1.9

18.24

FINANCIERE RICHEMONT

SWITZERLAND

CLOTHING&ACCESSORIES

78.5

0.2

0.26

-1.75

-11.6

-8.13

BAYER

GERMANY

SPECIALTY CHEMICALS

140.3

0.35

0.25

0.83

24.2

43.75

SIEMENS

GERMANY

DIVERSIFIED INDUSTRIALS

100.95

0.25

0.85

7.7

2.93

TELEFONICA S.A.

SPAIN

FIXED LINE TELECOMMUNICATIONS

13.29

0.03

0.23

-1.01

11.5

16.57

TOTAL

FRANCE

INTEGRATED OIL&GAS

46.37

0.09

0.21

-0.48

9.1

-3.16

PRUDENTIAL

UNITED KINGDOM

LIFE INSURANCE

1675

0.18

-0.48

12.3

27.18

ING GROEP

NETHERLANDS

BANKS

13.67

0.02

0.15

2.17

26.2

29.16

RECKITT BENCKISER GRP

UNITED KINGDOM

NONDURABLE HOUSEHOLD PRODUCTS

5805

0.09

-0.94

11.4

18.32

BANCO SANTANDER S.A.

SPAIN

BANKS

7.02

UNCH.

0.04

2.01

1.3

3.76

UNILEVER CVA

NETHERLANDS

FOOD PRODUCTS

38.93

0.02

0.04

0.14

19.3

31.08

DEUTSCHE TELEKOM

GERMANY

MOBILE TELECOMMUNICATIONS

17.05

UNCH.

-0.03

0.12

28.6

47.77

UNILEVER

UNITED KINGDOM

FOOD PRODUCTS

2813

-2

-0.07

-1.33

10.18

VODAFONE GROUP

UNITED KINGDOM

MOBILE TELECOMMUNICATIONS

220.05

-0.4

-0.18

-2.07

-1.2

-0.11

SAP

GERMANY

SOFTWARE

67.4

-0.13

-0.19

1.58

15.7

14.28

BHP BILLITON

UNITED KINGDOM

GENERAL MINING

1470

-3.5

-0.24

-2.49

5.9

-21.89

ROCHE HOLDING PART. CERT.

SWITZERLAND

PHARMACEUTICALS

267.4

-0.7

-0.26

1.6

-0.9

1.29

RIO TINTO

UNITED KINGDOM

GENERAL MINING

2762

-10

-0.36

-1.69

-7.9

-18.16

Global Indices NAME

LOCATION

LAST

NET.CHNGPCT.CHNG

DJ INDU AVERAGE

NEW YORK

17,756.24

58.06

0.33%

OPEN

HIGH

LOW

17,699.52

17,815.03

17,673.49

17,698.18

FTSE EUROTOP 100

LONDON

3,175.90

-11.66

-0.37%

3,184.02

3,188.40

3,175.64

3,187.56

XETRA DAX PF/D

FRANKFURT

11,981.46

-19.92

-0.17%

11,991.62

12,020.11

11,950.70

12,001.38

CAC 40 INDEX/D

PARIS

5,073.52

11.30

0.22%

5,068.06

5,080.53

5,059.42

5,062.22

FTSE MIB/D

MILAN

23,326.19

-32.80

-0.14%

23,407.38

23,453.85

SMI PR/D

SWITZERLAND 9,123.13

-14.13

-0.15%

9,124.74

9,157.67

HANG SENG INDE/D

HONG KONG

25,275.64

192.89

0.77%

25,214.33

25,297.80

23,289.91 23,358.99 9,117.03

9,137.26

25,152.57 25,082.75

NIKKEI 225 INDEX

TOKYO

19,312.79

277.95

1.46%

19,141.93

19,433.89

ALL ORDINARIES

AUSTRALIA

5,869.74

36.83

0.63%

5,832.90

5,877.80

5,832.90

STRAITS TIMES/D

SINGAPORE

3,453.75

6.73

0.20%

3,446.60

3,454.80

3,444.80

3,447.02

SSE COMPOSITE/D

SHANGHAI

3,826.69

16.39

0.43%

3,827.69

3,835.45

3,775.89

3,810.29

S&P SENSEX/D

MUMBAI

28,260.14

302.65

1.08%

27,954.86

28,298.34

27,889.02

27,957.49

19,115.14 19,034.84 5,832.92

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 ROYAL DTCH SHL/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 996.50 2861.00 1550.00 464.90 1570.00 719.00 1097.00 288.00 551.00 4630.50 524.08 254.75 3566.60 853.50 837.00 1432.00 1855.00 442.05 1720.00 443.05 3305.00 252.80 1183.50 1114.00 2793.00 1760.00 1888.13 207.77 192.50 1127.00 690.00 299.00 360.60 280.70 1569.24 667.50 1161.25 582.10 536.75 597.50 2624.00 1268.00 3129.00 2526.00 249.90 3396.00 210.76 363.00 1257.00 281.30 79.05 551.00 550.00 195.87 877.00 7045.00 227.30 960.13 569.50 1679.00 1440.00 5822.00 349.90 2024.50 1156.00 2127.00 582.00 2755.68 945.00 4780.00 427.40 3604.50 260.07 3222.00 2445.00 469.40 5155.00 479.60 1113.50 1144.00 142.70 1502.00 1075.50 2095.00 626.55 285.07 244.30 2854.00 936.55 479.10 222.45 1741.00 4014.64 1539.00 5250.00 8.00

CLOSE 1016.50 2816.00 1540.00 464.00 1551.00 733.50 1095.00 287.70 549.00 4640.50 524.00 249.30 3538.50 851.40 837.50 1470.00 1840.00 442.10 1731.00 441.40 3258.00 254.80 1172.00 1115.00 2757.00 1745.00 1868.50 204.00 197.50 1121.00 700.00 297.30 358.80 284.10 1565.50 668.00 1162.00 578.60 528.50 600.00 2642.00 1268.00 3045.00 2513.00 251.90 3387.00 213.70 368.00 1255.00 280.50 79.39 548.50 530.50 195.10 878.50 7000.00 225.20 963.00 577.00 1675.00 1443.00 5805.00 345.40 2031.00 1152.00 2132.00 581.00 2762.00 950.00 4801.00 426.60 3570.00 258.10 3208.00 2449.00 468.80 5260.00 477.50 1117.00 1132.00 144.60 1503.00 1082.00 2084.00 608.00 283.90 243.25 2813.00 939.50 495.80 220.05 1695.00 3991.00 1513.00 5225.00 8.10

NET.CHNG -20.00 45.00 10.00 0.90 19.00 -14.50 2.00 0.30 2.00 -10.00 0.00 5.45 28.00 2.10 -0.50 -38.00 15.00 -0.05 -11.00 1.65 47.00 -2.00 11.00 -1.00 36.00 15.00 19.50 3.70 -5.00 6.00 -10.00 1.70 1.80 -3.40 3.50 -0.50 -1.00 3.50 8.50 -2.50 -18.00 0.00 84.00 13.00 -2.00 9.00 -3.00 -5.00 2.00 0.80 -0.34 2.50 19.50 0.70 -1.50 45.00 2.10 -2.50 -7.50 4.00 -3.00 17.00 4.50 -6.50 4.00 -5.00 1.00 -6.50 -5.00 -21.00 0.80 34.50 1.90 14.00 -4.00 0.70 -105.00 2.10 -4.00 12.00 -1.80 -1.00 -6.50 11.00 19.00 1.20 1.05 41.00 -3.00 -16.70 2.40 46.00 24.00 26.00 25.00 -0.10

PCT.CHNG -1.97% 1.60% 0.65% 0.19% 1.23% -1.98% 0.18% 0.10% 0.36% -0.22% 0.00% 2.19% 0.79% 0.25% -0.06% -2.59% 0.82% -0.01% -0.64% 0.37% 1.44% -0.78% 0.94% -0.09% 1.31% 0.86% 1.04% 1.81% -2.53% 0.54% -1.43% 0.57% 0.50% -1.20% 0.22% -0.07% -0.09% 0.60% 1.61% -0.42% -0.68% 0.00% 2.76% 0.52% -0.79% 0.27% -1.40% -1.36% 0.16% 0.29% -0.43% 0.46% 3.68% 0.36% -0.17% 0.64% 0.93% -0.26% -1.30% 0.24% -0.21% 0.29% 1.30% -0.32% 0.35% -0.23% 0.17% -0.24% -0.53% -0.44% 0.19% 0.97% 0.74% 0.44% -0.16% 0.15% -2.00% 0.44% -0.36% 1.06% -1.24% -0.07% -0.60% 0.53% 3.13% 0.42% 0.43% 1.46% -0.32% -3.37% 1.09% 2.71% 0.60% 1.72% 0.48% -1.23%

LI E

MANAGEMENT

One of the best lessons the wealthy have learnt is to think long-term in value and actual work

he rich are getting richer as the median household income not only fails to rise, but has stagnated. There are people that are making less than $44,000 a year and struggling to live. Grit your teeth and bemoan your situation, but if you’re like most people, you want to know how the rich do it. I’ll share seven ways they build wealth. 1. Work toward long-term, not shortterm goals Long-term goals take a minimum of one to ﬁve years to accomplish. Long-term goals are excellent motivators. They enable you to look beyond the moment and put into perspective why you are spending your time today as you are. Your daily tasks should have a direct connection to your long-term goals. If they don’t, you need to re-examine them and decide whether to cut them out completely or reduce the time you are spending on them. To stay focused on your long-term goals, it is vital to set a date they will be accomplished. Put a note on your phone, your planner or on an index card taped to your computer. It should be somewhere where you will see it every day and be reminded of what you are working toward.

CHARACTER Kenya must get its t≥ust back

SAFARI RALLY Splashes of mud to speed glo≥y

Page 28

Page 31

PERSONAL FINANCE

Seven tested steps the ≥ich take to keep climbing the ladde≥ of gold and silve≥ WAY UP

Tuesday April 7, 2015 | BUSINESS DAILY

2. Understand the best goals play out over time, not spontaneously The rich understand that the best goals play out over time. They don’t happen spontaneously. Goal setting is an ongoing activity. The rich know that they need to remind themselves to stay on track. The rich don’t write down their goals and put them away. They make regular appointments on their calendars to review their goals. The destination for long-term goals may not seem to change but the steps they take to get there will. No matter whether your long-term goal will take five or 20 years, remember that the journey takes time. Keep moving forward, knowing that over time you must attain your goals. 3. Create long-term value that pay dividends. You need to build businesses that will pay you long-term dividends into the future. In some types of business, such as trading, you need to trade over and over to keep revenue coming in. Each day you are starting fresh. You need to find add-on businesses that will generate residual revenue for you and don’t require starting from scratch each month. 4. Acknowledge weaknesses and outsource The rich know that it is more efficient to capitalize on strengths. They do not waste time trying to “fix” weaknesses. Instead they acknowledge those weaknesses, outsource to appropriate sources and do what they love. Even in down times in the economy, outsourcing remains popular. The pace of changes in technology will continue to drive the

outsourcing need, which shows no signs of slowing down. If your core competency is customer contact, it’s crucial that you spend your time and focus there. Don’t bother wasting time trying to master the tasks you are only mediocre at. 5. Go ‘all in’ on projects that best use strengths Rich, successful people don’t jump out of bed without a plan. That fine-tuned plan doesn’t just list goals. Those goals are carefully honed, focusing on big goals that we know are attainable because they are aligned with our strengths. The wealthy get richer because they determine what their strengths are and then invest all of their efforts into it. Not only do they not attempt to fix their weaknesses but they ignore them altogether. There’s no time to waste. 6. Follow passions and work harder than anyone else The average person believes that the rich work all the time. They do. The difference is they find and follow their passion. Then they work harder than anyone else does. They’ll tell you they don’t feel like it is work because they’re doing what they love and getting paid for it — and very well at that. The average person’s mentality equates making money with working hard, whether physically or mentally. As Confucius said, “Choose a job you love, and you will never have to work a day in your life”. 7. Never quit when goals are achieved and strive to be better The upper class don’t rest on their laurels. This is the biggest obstacle that keeps most people from getting richer. The average person sets goals, achieves them and then sits back and relaxes. The rich never quit. Once they

Take time to ﬁnd where your heart is, go for it and keep working harder than the average person.

achieve their goals, they set more goals. They look for goals that will better themselves. They challenge themselves to be better, to reach the next level. The rich know there is always more to learn, more to accomplish and more money to be made. There you have seven ways that the rich get richer. Which can you use to start making your money dreams come true today? -ENTREPRENEUR

BUSINESS DAILY | Tuesday April 7, 2015

Life: Management LIFE SKILLS Empty and cheap talk is lacking respect for yourself and others

G≥aft list: A chat with Kenyans on cha≥acte≥ also is essential for our society to function successfully. Each individual must do his or her part. CANUTE WASWA Now, let me give a crash course in economics. There is something known as public In the last one week, I have watched with goods. Public goods are those that society sadness as public officers are named in requires and that benefit everyone, but that connection with corruption. Some have the private sector has no economic incenstepped aside. Some have vowed not to. tive to provide. Public goods benefit everyone, whether Many continue to plead their innocence. The theatrics have only made me reflect they pay for them or want them or not. The most basic public good is defending the the more about trust. Wouldn’t it be nice if people just did populace from attack and invasion. Other public goods include the highway system what they said they would do? Now, imagine an entire country where and traffic lights, clean air and water, and all people are judged not on their race, their public education. wealth, fame or success, but, first and foreThe government provides public goods most, on whether they keep their prom- by administering the budget and overseeises and always do what they say. Where ing the delivery of the goods. And that is why it really hurts when a person is judged on whether his word is his bond — on his honesty and integrity. public servants are accused of using the Isn’t that a place where we would all like same budget for their own personal benefits as opposed to managing it to live? in trust. This attribute is called T≥ust in But did you know that character. highly principled leaders The 2015 Edelman business, media and their organisations perTrust Barometer points to and NGOs is at form especially well? an “evaporation of trust” its lowest level According to a new study in institutions and leaders by KRW International, a Minworldwide. The annual sursince the 2008 neapolis-based leadership vey finds a decline in trust financial c≥isis overall, with more countries consultancy, CEOs whose classified as distrusting than employees gave them high trusting. marks for character had an Globally, trust in business, average return on assets of media and NGOs is at its low9.35 per cent over a two-year est level since the 2008 financial crisis. period. That’s nearly five times as much as what Yet living a life of good character is in everyone’s self-interest. It is the most im- those with low character ratings had; their portant gift you can give yourself and will ROA averaged only 1.93 per cent. benefit you forever through thick and thin When public servants don’t do what we in ways you may not yet imagine. wananchi have entrusted them to do, we Besides the individual, character in life all get hurt.

STAYING AHEAD

Integrity Centre: Kenya’s head ofﬁces of the ethics agency. It is disheartening that public ofﬁcers can use their budgets for personal gains. FILE

Your integrity is your most important virtue. History has proved that when you cheat, your “success’ is false. When you break a promise, you are showing that your word is meaningless. When you lie, you deceive others and lose their respect. Bad character destroys your reputation and breaks the trust others have in you.

As Billie Jean King said, “Saying one thing and doing another shows lack of respect for yourself and others and can destroy the trust others have in you. Every aspect of your life gets better when you are truly honest with yourself and others” Mr Waswa, a management and HR specialist is the managing director of Outdoors Africa. E-mail: waswa@outdoorsafrica.co.ke.

Eve≥y mo≥ning gives you oppo≥tunity to become bette≥

very morning, when we are given the privilege to wake up and embark on a new day, we are also given the opportunity to grow as individuals. One of the most important questions you can ask yourself daily is, “How can I grow today?” That particular question is powerful because when you start your day by asking yourself what are the ways you can grow, your mind will go to work on ﬁnding the answers. For the longest of time, I would constantly focus more on my work than I would on myself. I would become more frustrated as time went on, because here I was spending a ridiculous amount of time working on tasks, projects and other things while not focusing one bit on growing into a better me.

Jim Rohn once said, “Work harder on yourself than you do your job. If you work hard on your job you can make a living. If you work hard on yourself you can make a fortune.” Over the years, I have found that profound quote to hold an incredible amount of truth. The day I started asking myself, “How can I grow today?” is the day my life and business changed for the better. After I went through my morning routine, I would write down on a note card what I was going to focus on for that day in terms of growth. Somedays it would be to practice forgiveness. Other days it might be to learn a new skill or practice something I felt I was lacking in. Whatever the case, I made sure I got better and grew as an

A new day: You must move out of the comfort zone. individual daily. We all grow older in age, but growing as an individual is optional. It’s a

choice you and only you can make. Every experience, thought, relationship and encounter in life gives us the opportunity to grow, whether negative or positive. When you make the firm decision to grow on a daily basis, you begin to reap the real beauty and joy that life has to offer. There is no better satisfaction than to know deep down that you are growing more and more into the person you were put here to be. Since growth is optional, that leaves the majority of the population to take the easy way out and not focus on daily growth. The reason most don’t commit to daily growth is because it requires you to move out of your comfort zone. You can’t grow while you’re comfortable. Learning a new skill, refining an old

one, changing your thought process, reading more or waking up earlier than normal requires you to move past your comfort zone. Decide. Becoming the best you and growing daily doesn’t just happen by accident. It starts with a firm and bold decision. Just like anything in life, we are provided with decisions. Take the time right now to make the decision that you will grow as an individual every day, somehow, someway. Create your own daily growth programme. Whatever works best for you, do it. As long as you make a firm decision that you will grow somehow, someway is all that really matters. You owe it to yourself to reap the full benefits that life has to offer. -ENTREPRENEUR

Tuesday April 7, 2015 | BUSINESS DAILY

Life: Management

G≥aduate f≥om assets ≥at ≥ace to invest wisely agining that investing is something to be done once and for all, these believe that the income they receive is meant for their enjoyment as a reward for their wisdom in making good investment decisions. These soon come to their doom when the tide turns in their industry or sector. While it is important for family business to keep sowing through investment, it is also critical that Leaders of Family Business separate income from investments into seed for reinvestment.

PORTFOLIO Does it make sense to have

shares in companies you don’t assess? FAMILY BUSINESS PETER MUTUA Now He who supplies seed to the farmer and bread to eat will also supply you with seed and multiply it and enlarge the harvest that results from your righteousness. 2 Corinthians 9:10 ISV

New ventures

ulius Muya, a trainer for the International Leadership Foundation’s Transforming Leadership seminar, told the story of a man who, as he drove around a residential area looking for propThe Nairobi Securities Exchange: Do you know the number of shares you have in listed comerty to buy, came upon an empty plot. It panies? was large, fully serviced and right next to the road. The area around this plot was bought it and forgot about it. Consequently, many Leaders of Famdeveloping rapidly and he could see, with Investment, especially in land, has grad- ily Business are avid collectors of property his futuristic eye, the opportunities this uated into a craze especially now when rather than true investors. there seems to be no limit to the prices land land held. They anxiously look out for the next The gentleman did not waste time. He will fetch in both rural and urban areas. big thing; they own plots in every county, immediately called his Stories of newly minted mil- farms and rural homes they never visit and lionaires abound, of “chamas” share portfolios they have never examined. agent and gave him the Many Leade≥s details of the plot togeth(formal and informal invest- Such “investors” operate on the vague noer with firm instructions ment groups) that have made tion that whatever it is they bought must of Family to find out who the ownfortunes by buying land and be multiplying in value. Business a≥e er was and what price he Others look after their investments well, letting it appreciate. avid collecto≥s was asking for. He went While some individuals they ensure that they generate regular, infurther to offer a special and groups consistently re- cremental returns. However, some of these of p≥ope≥ty bonus if the agent could evaluate their investments Leaders of Family Business live miserly, ≥athe≥ than t≥ue convince the owner to sell for growth and profits, large poor quality lives in spite of substantial investo≥s the land to him. numbers hang on to their in- incomes; they consider it sacrilegious to vestments in the hope of bet- spend money on anything that doesn’t When they met the ter deals from their seed. next day the agent had a generate a future income. They plan to Sadly, a number of such “investors” “enjoy life” sometime in the future when quizzical look in his eyes. When his principal eagerly demanded answers to the never reap from what they sow because they finally have “enough”. That time questions he had posed he dropped the they are so busy amassing property that rarely comes. bombshell: the plot in question belonged they never assess the state or quality of Another group of Leaders of Family to the man who was keen to buy. He had their acquisitions. Business goes to the other extreme. Im-

Treating all income as either seed for investment or money to spend on immediate needs has catastrophic short, medium and long-term consequences. The sole purpose of investment is to reap fruit in the form of interest, rent or dividend going into the future. Any venture that demands continuous investment without generating returns does not qualify as an investment and should be re-evaluated for viability. Leaders of Family Business also recognise that a portion of the income they receive from their ventures is also meant for enjoyment in the present; that there is nothing wrong with improving their lifestyles using the incomes generated from hard-earned proﬁts. Failure to do this often indicates either greed or spiritual poverty, both of which can be unbearable, destructive masters. Leaders of Family Business should recognise that investment is a continuous process; they should always be planting seeds in the hope for future returns. Therefore, a portion of all returns they receive from investments should be reinvested into new ventures for greater gains. Mutua is a Humphrey Fellow and a leadership development consultant focused on family businesses. Email: p.m.mutua@googlemail.com

How to ﬁnd space fo≥ you≥ business in a c≥owded ma≥ket

bout 476,000 new businesses are created each month according to reports. Many will struggle during the first few years — and half will fail. On the other hand, half will succeed. Knowing what separates those that bottom out from those that bubble up is what can make the difference in the health and longevity of a start-up. A solid, defined brand — the driving force within a company and the promise to its customers that both moves the business forward and keeps it on track— is essential to a business’s success. But it’s not as easy as it sounds. “We’re going to be green.” “We’re going to be the company that cares.” “We’re

going to be luxury.” There are 30 million companies in the US alone — each one with its own brand. How do you find a place for your new business in all this? How do people recognise you through all this chatter? While each brand is different, there’s a similar path that successful companies take to find their place.

Clearly define your business idea You need to have a clear place in the market. Think about what makes your product or service different versus others in the marketplace. Once clear on what you offer and where you’ll play, focus on how you can do it in a superior way. It all starts with a

Successful brands are typically fuelled by a bigger vision or ideal other than financial success. An ideal serves as a guidepost that will keep your business on track. To find this for your business, fill in the blank: “We exist to_______.”

You can ﬁnd a room even in markets that are congested. JOSEPH KANYI

clear business idea and a compelling, superior oﬀering.

2. Have an ‘ideal’ for your busi-

ness

Identify your target Your product won’t appeal to all, and it can be very expensive to try to do so. A well-deﬁned target will help you build a better product and come up with better ideas. Understand your business’s math You need to understand the basic math that determines how viable your business can be. You should be

able to answer simple questions such as: “How much does it cost to produce the product?”, “How much do I need to sell it for?” and “How long will it take to pay out?”

Have a plan Draw up a brand plan — a physical document that describes what you want your brand to stand for, what you’ll oﬀer, which customers you want to attract, how you’ll reach them, how you’ll make money and how you’ll measure success. This not only brings discipline to your business endeavour, but also becomes the business plan to share with potential investors down the road. -ENTREPRENEUR

BUSINESS DAILY | Tuesday April 7, 2015

Life: Enterprise

Kenyan ﬁ≥ms take Af≥ica d≥eam to new high despite chaos

attention to such businesses. I also met Mike Macharia, the CEO of Seven Seas Technologies, as he addressed Aly Khan’s Mind Speak Forum. He also mentioned how he started his business in Rwanda as a young man. His company also has presence in Zimbabwe, a fact that surprised many in the audience. He explained that there are many opportunities in chaos that entrepreneurs shouldn’t miss. An analogy of how a business in Zimbabwe would increase its staﬀ numbers as the country’s currency lost value in many folds. Since that business was being paid in forex currency, devaluation meant one could increase talent pool without aﬀecting the wage bill. Mr Macharia has his sights on African market, arguing that what can work in one market should be scaled to the whole continent.

TIMES CROSSWORD 24038 1

17 15

Global award

Mr Vimal Shah, the CEO of Bidco: The edible oils manufacturer is one of the Kenyan companies that started small but now operates in the region. FILE

MARKET TALK BONIFACE NGAHU

n the last two weeks I have interacted with CEOs of Kenyan companies that have regional presence. One of them was Vimal Shah, the CEO of Bidco when he was addressing marketing professionals. In his ﬁreside talk he said that Bidco has changed its name to Bidco Africa, which is a conﬁdence vote. He also mentioned that the prospects for Kenya are looking bright on the continent. Here is a man who once sold life insur-

ance while in college and also hawked cooking oil and soaps when the company was small. When they were changing from a textile business to edible oils, Bidco could not access funds from the bank. Banks argued that they had no experience in the cooking oil business and their plan was, therefore, not bankable. The International Monetary Fund (IMF) bought their idea but advised that they start small; they did. The same happened when they came up with the idea of having a palm oil plantation, which was a new idea in Africa. This time round they could only fund the project from internal funds. The point here is that every business starts small and banks should pay more

At the marketers’ Mindspeak event, Joshua Oigara, the CEO of KCB, which also has a presence in the region, mentioned that one should not reinvent the wheel but get the wheel and apply it for the better of the world. The KCB M-Pesa account seems to be driven by one wheel that Safaricom has the M-Pesa mobile money solution. The new account is said to have increased access to credit especially to the youth and small businesses with no need to visit the bank hall. Wherever one is in Africa such a product will deﬁnitely have takers. Equity Bank also announced that they were creating a war chest of Sh20 billion to enter 10 new African markets in the next ﬁve years. Their planned countries of entry include Somalia, Ethiopia, Malawi, DR Congo, Nigeria and Ghana. I met Equity CEO James Mwangi at Ernest & Young Entrepreneur of Year Award ceremony last year. He was the global award winner the previous year courtesy of his disruptive banking business model. Here is to the African multinationals born in Kenya. The writer is the marketing director of SBO Research. E-mail: bngahu@sborese arch.co.ke, Twitter @bngahu.

TIMES 25,037

Sea lion inju≥es man posing fo≥ pictu≥es holding fish A man was injured on Sunday after he was pulled into the water by a sea lion that jumped from the water at a San Diego marina and grabbed a fish he was holding, authorities said. The sea lion jumped onto the railing of a boat at the Hyatt Mission Bay Marina and snatched a fish being held by a man on the boat, said San Diego Fire Rescue spokesman Lee Swanson. The man was pulled into the water for about 15 seconds,

Swanson said, and was brought to a hospital where he was treated for cuts on his arm and hand. Media, citing witnesses including lifeguards, reported the man was posing for a photo with the large ﬁsh when the incident occurred. California sea lions, many of them pups, have been washing ashore stranded and hungry in record numbers in recent months.

Z I Z Z S T R A T H S P E Y A E V O N O O U B O B T A I L E D O U S E L A R R E E D S E G L A Z I E R S U L L E N L E A U S S I N C I D E N T A LMU S I C O O C W E O N E WG A T E C A L E N D A R E A P R N E P R O P E R E D I T O R S S D A A N G D H T R I E R D R E AML I K E O C E I S A U E WH E E L HO U S E OM I T

SUDOKU 225

Across 1 Everyone patient with me today, swimming in a cold sea (8) 5 Church roofs have to come ﬁrst (4,2) 8 Cutting off fat (10) 9 Feeble people when rebuffed are nervous (4) 10 A bookstore’s to engage boy to introduce royal poems (1,10,3) 11 Mean to eat roast, initially hard to chew (7) 13 Cut corner in Beetle, having to cover miles (7) 15 Boring into me, start to amputate centre of organ (7) 18 Parrots savaged by them? (7) 21 Sense of optimism for catching ﬁsh — decent bit of evidence (4-4,6) 22 Grain some animal took (4) 23 Lack of resources, wanting a coin in Machu Picchu? (10) 24 All having intelligence in foreign port? (6) 25 Gown and mortarboard, or just mortarboard? (8)

Down 1 Cellist packs acceptable clothes (7) 2 Such a mate son fussed over (9) 3 Hired Jones’s partner, heading for nasty disappointment (3-4) 4 Girl wrongly sent inside: call for this? (7) 5 By some wood, golden bird’s endless twittering (9) 6 Son of David, a second-rate Strauss opera that closes early (7) 7 Love greenery, when right out — it’s late (7) 12 What’s set to explode? (9) 14 Extremely dangerous cold — best for it to be treated (9) 16 Fell out with fairies here (7) 17 Left not defeated — British leaving (7) 18 Old advice about listening equipment that’s legally binding (3,4) 19 One taken on march up mountain needing heart perhaps (7) 20 Mister, a shilling! — heartfelt plea (7)

SUDOKU PUZZLE

226

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 7, 2015 | BUSINESS DAILY

KCB SAFARI RALLY Jaspreet Chatthe wins

Clouds of dust and splashes of mud in ﬁght fo≥ speed glo≥y BY KOOME KAZUNGU

he just ended KCB Safari Rally was a tale of resilience and endurance seen in punctures, misfiring engines, and drama. Car manufactures grabbed the precious chance to showcase their high-powered engines ranging from Land Rover, Ford, Subaru, Audi VW, and Toyota. Traders did a roaring business rally enthusiasts followed the action from KICC, Machakos County, Naromoru, Nanyuki and Meru Town. Sports and Culture Cabinet Secretary Hassan Wario flagged off the event that others have said is “one of our international sports which brings tourists to Kenya.” Baldev Chager was the first off the ramp and, by noon, 20 rally cars had passed through the Konza stage with Finland ace Tapio Laukkanen leading followed by Raaji Bharij. Tapio continued with his dominance at Cs2 with a time of 25.59 minutes while Raaji Bharji trailed by a minute. Hapz Sagoo rolled in his Subaru Impreza while Imran Mogul was disappointed after his Subaru N10 broke rear drive shafts at the Konza Stage. Others who dropped out on Day One were Rupesh Chauhan, Khan and Rob Hellier.

Heavy downpour By end of Day One, Tapio had powered his Subaru Impreza, navigated by Pasi Torma, to victory, with Raaji’s Mitsubishi Evolution coming in second position. An S2000 Proton Neo Satria gave Kenya’s Carl ‘Flash’ Tundo a third place followed by Jaspreet Chatthe, Manvir Baryan, Onkar Rai, Baldev Chager then Ian Duncan, who had clocked 49 minutes 56 seconds to a top-8 ﬁnish. The Day One leg was staged on closed pri-

vate farm roads in Konza and Machakos areas. On Saturday, action was in the Mount Kenya region where the drivers would tackle 420km on Day 2, traversing Lengetia in Naro Moru, Loldaiga in Nanyuki, Ngare Ndare, and Nkunga stretches. The drivers tackled the Lengetia stretch for 29.75km with Ian Duncan emerging the fastest overall by a time of time 23.50 minutes, while Tapio extended his lead by 1:10.37. The real challenge came at Ngare Ndare stage. A few minutes before the drivers covered the Ngare Ndare route, there was a heavy downpour that changed the terrain a dusty stretch to a muddy, slippery one, testing the drivers’ skill and ability to ﬁght.

Alaster Cavenagh’s Porsche 911 in full ﬂight on CS Nkunga stage during the Day 2 of the KCB Safari Rally. ANWAR SIDI

By mid-afternoon, the Kisima stage was cancelled since there was less time left. With Finland’s Tapio Laukannen out, eyes focused on Ian Duncan , Carl Tundo and Jaspreet Chatthe who were dominating most of the stages. Tundo grabbed the lead. By 11.30am, 31 seconds were separating Chatthe and Duncan and it was whether Chatthe would beat Kenya’s six times champions. At Kibirichia market, the only women in the race Tash Tundo and her navigator Chantel were locked out after their car broke down due to a

clutch failure. Baldev was the hero with three stages to go as he navigated the Spectators stage at the ASK showground, followed by Manvir, Chatthe, Rajbir, Ian and Tundo. At the ﬁnal bend, it was Jaspreet Chatthe in his Evo 10 followed by Ian Duncan and Tundo racing for honours. But it was Jaspreet who powered his Lancer Evo X to an amazing podium ﬁnish. kkazungu@ke.nationmedia.com

Very bad! Tapio Laukannen proved a force to reckon with on the Loldaiga 44 km stage, going faster than Ian by 9.79 minutes. Tapio’s Subaru, ﬁve Evo X cars, one Proton, two R5 Ford Fiestas, and a Skoda Fabia fought for the bragging rights. Quentin was disappointed after retiring early. “This is very bad, Skoda isn’t yet strong for Africa, I am truly disappointed,” he was heard lamenting. The Meru Forest stretch saw Farhaaz Khan retire from the rally after his Mitsubishi Evo-9 misﬁred, while Kibirichia, Nkunga, and Loldaiga stages sent most of the drivers packing. Tejveer Rai left at Loldaiga, Tash Di Cangio at Kibirichia, the land of Irish potatoes. Nikhil Sachania was lucky to escape unhurt after his Fiat crashed with a police Landcruiser after a gear failure at the exit of the last stage.

Ian Duncan and Amaar Slatch splash through mud in their Mitsubishi Evo 10. ANWAR SIDI

SPORTS BRIEFING Serena praises experience after eighth Miami crown Serena Williams’ latest landmark achievement —an eighth Miami hardcourt crown — sends the US superstar into the claycourt season surrounded by talk of an even greater feat — the calendar Grand Slam. At 33, the world number one is playing as well as ever. In fact, she says she has a greater understanding of the game now, making her better able to use her astonishing power and array of shots to good effect. “I actually think that I read the game better,” Williams says. “Like when I’m playing an opponent, after three games I’m like, ‘OK,

now I know what you’re going to do ... or when the coach comes out I really key in on what they change their games to. “I don’t think I did that before. I think that’s just experience and age.” Williams is 18-0 in 2015, a perfect run that included her 19th Grand Slam title at the Australian Open. Although age doesn’t seem to be dimming her physical abilities, injuries remain a potential stumbling block -- witness the sore knee that forced her to withdraw from the WTA premier level tournament at Indian Wells a fortnight before Miami. Only three women have won all four major titles in one year — Maureen Connolly

Djokovic cites conﬁdence on beating Murray at Miami

Serena Williams. AFP

Brinker in 1953, Margaret Court in 1970 and Stefﬁ Graf in 1988.

Novak Djokovic, entering the 141st week of his career at number one in the world and fresh off a milestone fifth Miami Masters title, just wants to keep up the pace as long as he can. “I’m trying to enjoy the moment and also utilise this time of my career. I’m feeling confident and physically fit,” Djokovic said Sunday after a gritty three-set triumph over Andy Murray in the Miami final. “I’m trying to use that. That’s what I’m thinking about right now,” added the 27year-old Serb, who goes into the European claycourt season highlighted by the French

Open having won the three biggest tournaments of the first quarter of the year: the Australian Open and both the Indian Wells and Miami Masters. “I am aware that this cannot go forever,” Djokovic said. “There is going to be eventually a change of generations, some players that are going to start playing better and be stronger. “But until that time comes, I’m going to try to stay as long as I can on the top and fight for the biggest titles.” With 4,000 points separating him from Federer at number two in the world, Djokovic is poised to finish at number one in the world for the fourth time in five years.

BUSINESS DAILY | Tuesday April 7, 2015

Your minute of the day

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If not a≥≥ested, co≥≥uption can se≥iously ≥eta≥d economic development in Kenya

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GEORGE WACHIRA YoussouN’dour,Senegalese singer, page 14

Barack Obama, US President, page 9

IDEAS & DEBATE

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GLOBAL MARKET WATCH DJ INDU 17,756.24 58.06

FTSE 100 3,175.90 -11.66

XETRA DAX 11,981.46 -19.92

CURRENCY RATES CAC 40 5,073.52 11.30

FTSE MIB 23,326.19 -32.80

SMI PR 9,123.13 -14.13

HANG SENG 25,275.64 192.89

NIKKEI 225 19,312.79 277.95

ALL ORD. 5,869.74 36.83

SSE COMP. 3,826.69 16.39

S&P SENSEX 28,260.14 302.65

$: 92.50 €: 99.71 £: 137.16

TSh USh SAR

19.86 32.24 7.72

Market Activity LAST WEEK

MARKET CAP IN SH BN

Muslims ﬂee CAR attacks

Burkina Faso hunts kidnappers

Militants kill Mali woman

Tens of thousands of Muslims are ﬂeeing to neighbouring countries by plane and truck as Christian militias stage brutal attacks, shattering the social fabric of war-ravaged Central African Republic (CAR). Christian vigilantes wielding machetes have killed scores of Muslims, who are a minority, and burned and looted their houses and mosques in recent days, according to witnesses, aid agencies and peacekeepers. Tens of thousands of Muslims have ﬂed their homes. The cycle of chaos is fast becoming one of the worst outbreaks of violence along Muslim-Christian fault lines in recent memory in sub-Saharan Africa.

Burkina Faso authorities plan to cross into Mali and Niger to hunt the kidnappers of a Romanian mineworker seized in the far north of the West African nation, a minister said on Sunday. The security officer was taken on Saturday when five armed men attacked the manganese mine in Tambao, 350 kilometres northeast of the capital, Ouagadougou. The unidentified gunmen took off in the direction of the nearby border with Mali, according to security officials in both countries. “This is an area which borders the two countries,” said a high-ranking Burkinabe army officer when he spoke to AFP.

Militants shelled the largest city in restive northern Mali on Sunday, killing a woman and wounding three of her family including a toddler as they slept, hospital and security sources told AFP. A police ofﬁcial in Gao said the deadly rocket strike hit a household in the north, while two more landed near a clinic in the city centre.

Cairo bomb kills policeman An Egyptian policeman has been killed in a bomb blast next to a checkpoint on a bridge in Cairo. The explosion, in the upmarket Zamalek district, injured several more people on the May 15 bridge. A militant Islamist group named Ajnad Misr (Soldiers of Egypt) said that it had carried out the attack. The groups leader was later killed.

Uncertainty in UK elections In one month, Britain votes in a general election likely to put the nail in the cofﬁn of two party politics and herald an uncertain future of coalitions, alliances and horsetrading. Neither of the two parties which have dominated parliament since the 1920s, the Conservatives and the Labour, is expected to win the 326 House of Commons seats out of 650 needed to govern alone.

Health NEWS

2,431.64

130,782,600

EQUITY TURNOVER IN SH BONDS TURNOVER

134,069,000

3,948,373,582

4,318,053,218

7,374,275,000

5,482,450,000

TOTAL DEALS (BONDS)

100

TOTAL DEALS (EQUITY)

7,639

9,583

5,196.86

5,242.35

NSE 20 SHARE INDEX NSE ALL SHARE INDEX

173.39

174.16

PINEBRIDGE INDEX

887.17

888.93

FTSE NSE KENYA 15 INDEX

231.27

228.57

FTSE NSE KENYA 25 INDEX

231.52

229.96

FTSE NSE KENYA BOND INDEX FTSE ASEA PAN AFRICAN INDEX

92.39

93.28

1,234.76

1,225.93

“The moment of victory is much too short to live for that and nothing else.”

Swine ﬂu kills ﬁve in Jordan

A bus plunged 100 meters into a river in southwest China on Saturday killing 21 people, state media reported. An additional three people were also injured when the bus carrying 24 passengers went off a mountain road onto a dry river bed, the official Xinhua News Agency said. Fatal road accidents are a serious problem in China, where the highway network and number of new drivers are expanding rapidly while traffic laws and safety are widely flouted. Investigators believe the bus was illegally using a road intended for smaller vehicles in Bijie city, Guizhou province, the report said.

Five people have died in Jordan since the beginning of the year from swine flu, the health ministry said Sunday, adding that it has recorded 130 cases of the virus. “The health ministry has this year registered five deaths from the H1N1 virus and 30 cases,” a senior ministry official told a news conference. Daifallah Lozi said the deaths included elderly people, children under five and those with chronic ailments. He urged Jordanians to seek vaccination against the H1N1 strain of flu, which has now killed 30 people in the country since 2009. The World Health Organisation declared the swine flu pandemic.

The Philippines has become the latest country to require two airline crew in the cockpit at all times, a statement said Sunday, after the co-pilot of a German plane deliberately crashed it last month. This is after investigators concluded co-pilot Andreas Lubitz intentionally smashed a Germanwings ﬂight into the French Alps.

TOTAL SHARES TRADED

SHE SAID

21 die in Chinese bus crash

Two pilots order in Philippines

PREVIOUS WEEK

2,420.84

Skin cancer’s holiday link

Personal cancer vaccines plan

Hospital builds sleep app

A boom in cheap package holidays in the 1960s is partly behind the “worrying rise” in skin cancers in pensioners, Cancer Research UK suggests. The charity says that although all ages are at risk, many older people would not have been aware of how to protect themselves four decades ago. Figures show that 5,700 over-65s are diagnosed with the condition each year.

Tailor-made cancer vaccines that target unique genetic errors in a patient’s tumour have been developed in the US. Safety tests on three people, published in the journal Science, showed the immune system could be trained to ﬁght skin cancers. The American team say the early results mark a “signiﬁcant step” towards personalised cancer vaccines.

A free app to improve children’s sleep has been launched by doctors at the Evelina Children’s Hospital in London. They think it will help the two million parents in the UK who express concern about their child’s sleep and ease pressure on the NHS. Kids Sleep Doctor gives parents tailored advice, such as dealing with night terrors or up-all-night teens.

- Martina Navratilova American tennis player and coach

Download the NMG PLAY app on Google Play and scan this QR code with your smart phone for pictures, videos and more stories

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

Nairobi: 3-day forecast Tue Wed Thu

Mostly Sunny Mostly Sunny Mostly Sunny

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Low

25°C

14°C

25°C

14°C

24°C

16°C