Business daily apr 8th 2015 by HABA KWA HABA

Economy & Politics Ideas & Debate UK responds to Uhuru over travel advisories

If not arrested, corruption can retard economic growth

Life

Page 5

Page 9

Page 27

WEDNESDAY, APRIL 8, 2015

NO. 2069

Safa≥icom hunts down subsc≥ibe≥s fo≥ theft of ai≥time Suspect charged with breaking into the telco’s computers and stealing credit

Scientists unveil chemical trap for malaria mosquito

BY OKUTTAH MARK

No of Safaricom employees sacked over bribery and fraud cases Year

2014

2013

2012

2011

SOURCE SAFARICOM ANNUAL SUSTAINABILITY REPORT.

Thousands of Safaricom subscribers are under police radar for their involvement in a multi-millionshilling airtime time theft that took place last month. One of the suspects was yesterday charged in a Nairobi court with manipulating the telecoms FRAUD, Page 4»

WWW.BDAFRICA.COM KSH60 | TZ SH 1,700 | UGSH2,700 | RFr900

Counties told

to ≥ecove≥ money paid to oﬃcials BY GEORGE OMONDI

“We constantly monito≥ ou≥ business fo≥ f≥audulent activity and a≥e agg≥essively dealing with unlawful activity by pu≥suing p≥osecution to the fullest extent of the law,” BOB COLLYMORE, SAFARICOM CEO

TERROR VICTIMS REMEMBERED NAIROBI University students protest against last week’s killing of 148 people at Garissa University College by Al-Shabaab terrorists yesterday. JENNIFER MUIRURI

Controller of Budget Agnes Odhiambo has directed counties to recover any allowances that were irregularly paid out between July and December 2014, setting up governors for another showdown with members of county assemblies (MCAs). Ms Odhiambo has ordered counties that either breached guidelines set by the Salaries and Remuneration Commission (SRC) or internal budget limits, to immediately recover the money or prepare for sanctions. The directive follows the budget controller’s recent review of the administration of sitting and commuter allowances that has unearthed extensive abuse. “The findings show that some officers are paid monthly commuter allowances despite having been assigned official vehicles,” Ms Odhiambo says in the report that also requires counties to adhere to SRC circulars on staff remunerations and benefits. While the directive affects county executives as well as the MCAs, it is the latter who have frequently used their legislative and impeachment powers to defend their perks. Half-year report compiled by Office of the Controller of Budget (OCOB) indicates that 12 counties exceeded the BUDGET, Page 4»

BRIEFING

NEWS INDEPTH

City Hall mulls review of roundabouts rule

Sasini eyes proﬁt boost with Sh1bn land sale

FedEx bids for Dutch rival in expansion drive

Bank, insurance stocks slow down in 1st quarter

City Hall will in the next two days decide on whether to review the new traffic rules that bar motorists from making right turns on major roundabouts in Nairobi that yesterday caused heavy snarl-ups. Page 6»

Agricultural firm Sasini is set to sell 513.7 acres of its leasehold land, a transaction that will earn it Sh1 billion and potentially boost earnings in the current financial year.

US parcels delivery firm, FedEx Corp, plans to buy its Dutch rival TNT Express for an estimated $4.8 billion (Sh433.1 billion) as it aims to grow its footprint in the European market.

Page 7»

Page 15»

Key sectors at the Nairobi Securities Exchange (NSE) including banking and insurance comparably slowed down in the first quarter of the year, with analysts saying declining attraction is depressing share prices. Page 19»

Kenya fails to stem insecurity despite huge military spending Pages 12-13 »

BUSINESS DAILY | Wednesday April 8, 2015

TOP NEWS MASSACRE Five of them linked to the Garissa University massacre on April 2

Cou≥t o≥de≥s detention of 14 Ga≥issa attack suspects BY VINCENT AGOYA

A Nairobi court has ordered the detention of 14 suspected Al-Shabaab operatives, including five men linked to the Garissa University massacre in which over 145 students were killed. The five will spend a month in custody at an undisclosed police station in Nairobi while the rest will spend between five to 15 days at the Muthaiga and Kileleshwa police stations. Yesterday, prosecutor Daniel Karuri told the court that police are following strong leads allegedly linking the 14 to terrorism. Mohammud Adan Surrow is said to be the owner of a hotel in Garissa town where From left: Sahal Hussein, Hassan Aden, Mohammed Abdi, Osman Abdi and Mohammed the terrorists who attacked the university Aden in a Nairobi Court yesterday over the Garissa University terror attack. ANTHONY OMUYA stayed while Osman Abdi Dakane was a security guard at the ill-fated college. sity to help remove the dead “but instead Mr Dakane was allegedly arrested while was arrested at the University of Nairobi’s he started shooting pictures and making taking pictures of the dead and making Kabete campus hostels . He however dephone calls.” nied being a terrorist and told magistrate frantic telephone calls. Mohammed Abid Abikar, Hassan Adan “Preliminary investigations on his call Benson Nzakyo that he had come to Kenya Hassan andSahal Diriye Hassan allegedly data have revealed that he has been in conto study English. delivered weapons to the attackers. stant communication with several contacts “ I am sorry about what is happening in Somali suspected to be Al-Shabaab opto Kenya but I must state that I have nothThey were reportedly intercepted eratives,” Mr Karuri told the court. ing to do with it,” he said. The suspect is while crossing over to Somali after the The prosecutor also claimed that from among those to spend the next 15 days in bloodbath. A sixth suspect in the Garissa massacre, investigations it was established that some custody for profiling. Mr Rashid Charles Mberesero alias Rehani the attackers went to Mr Adan’s hotel in The Ugandan, Mr Andrew Katende, Dida, a Tanzanian, was not in court “ havwas arrested alongside Mr Antony Maina Garissa town. Mr Karuri said there was ing travelled with detectives and Mr Samuel Njuguna at a mall in Mloinformation that the Tanzato Garissa to gather more longo while in the company of a Spaniard nian was headed to Somali to evidence” after he confessed who has since been handed over to the join force with the terrorists. to being a member of the Alrespective foreign authorities for further “In light of this revelation it In light of this Shabaab. investigations. was necessary that investiga“The suspects are be- ≥evelation it was tors rush him to Garissa for Mr Mustafa Abdi Yusuf and Mr Abdi necessa≥y that further probing,” he said. Elimi Rage who said they are Kenyans and lieved to have been involved “born again” Christians but were still dein the attack on Garisaa uni- investigato≥s ≥ush The suspect is expected beversity on April 2 in which fore the Nairobi court on April tained for “verification” were arrested at him to Ga≥issa fo≥ 9 for a similar request for his the Nairobi Assemblies of God church. innocent students lost their fu≥the≥ p≥obing further detention. lives...investigations so far Among the suspects was Mr Hassan have established that they DANIEL KARURI, PROSECUTOR Documents presented in Munguti Muiya, who said he is a beggar court stated that the rest of the but the prosecution said had been arrested had contact with the attacknine suspects amongst them a Yemeni and while trying to “force his way into the NPC ers” the prosecutor told the court as he a Ugandan are suspected of being on surValley Road church last Sunday wearing a sought extended custodial orders. veillance mission for “soft targets.” Muslim head cap. He will be detained for He said members of the public reThe Yemeni, Mr Ahmed Mohamed Ali, five days at the Muthaiga police station. quested the security guard at the univer-

Weekly Weather Forecast East Africa www.businessdailyafrica.com

Follow your favourite stories online, plus more on markets, industry, policy and agribusiness FIND US ON FACE BOOK & TWITTER

businessdailyafrica BD_Africa

Monday

Tuesday

Thursday

Hi: 210C Lo: 130C

Hi: 220C Lo: 140C

Hi: 230C Lo: 130C

Hi: 220C Lo: 130C

Kampala

Hi: 26 C Lo: 150C

Hi: 25 C Lo: 120C

Hi: 26 C Lo: 140C

Hi: 26 C Lo: 130C

Dar-es-Salaam

Hi: 300C Lo: 190C

Hi: 280C Lo: 220C

Hi: 290C Lo: 220C

Hi: 290C Lo: 230C

Kigali

Hi: 250C Lo: 160C

Hi: 270C Lo: 120C

Hi: 270C Lo: 130C

Hi: 270C Lo: 140C

Bujumbura

Hi: 300C Lo: 170C

Hi: 310C Lo: 150C

Hi: 310C Lo: 140C

Hi: 300C Lo: 150C

BY BRIAN WASUNA

The Judiciary has hit back at President Uhuru Kenyatta’s directive to the Inspector General of Police to start training 10,000 recruits whose hiring had been stopped last year by the High Court. The Judiciary, in a statement, faulted Mr Kenyatta for engaging in an illegality by interfering and exerting undue pressure on the courts, adding that it was set to issue a judgment on the police row on May 8. President Kenyatta reached the decision following last Thursday’s terrorist attack at Garissa University College that saw Al-Shabaab murder 148 people. The 10, 000 recruits are set to report for training on Sunday. “It is important that the judges be allowed to make the determination on the matters before them as guaranteed by Article 162 of the Constitution without appearing to exert undue pressure on them,” said the Judiciary in a statement signed by spokesperson Naim Bilal. “The case has been fasttracked and due process must be allowed to take its natural course. The judges will reach a determination based on the facts and the law.” The Judiciary has further denied dragging its feet in determining the petition ﬁled by the Independent Policing Oversight Authority (IPOA),

arguing that it fast-tracked the hearing of the matter after Attorney-General Githu Muigai requested for a quick determination of the case. Yesterday, it denied claims that the matter had been in the courts for a year, arguing that IPOA’s suit was only ﬁled in August and determined in October before the government challenged the High Court decision.

Unconstitutional Prof Muigai in December appealed a decision by Justice Isaac Lenaola that declared the recruitment exercise unconstitutional after the judge said there was sufficient evidence that the process was marred by bribery. “In the instance case, I find and hold that the National Police Service Commission failed itself, it failed Kenyans, it failed the recruits, it failed the Constitution and it must be told so. I am satisfied that drastic action must be taken, painful or unpopular as it may be,” said Justice Lenaola during the ruling. The President said he would take full responsibility of the decision to recall the recruits for training. IPOA had filled a case seeking to have the process overturned and started afresh following complaints by the public. The move affected 1,215 would-be recruits out of the 10,000 meant to join the police training college at Kiganjo in August last year.

This index of businesses mentioned in today’s issue of the Business Daily is intended to include all signiﬁcant references to companies.

Friday

Hi: 250C Lo: 140C

Judicia≥y hits back at Uhu≥u ove≥ police ≥ec≥uits en≥olment

Index to companies

Wednesday

Nairobi

Chief Justice Willy Mutunga . FILE

ABC TV ..................................3

Swift Global ..........................7

Limuru Tea ..........................19

Naivas .................................. 6

Safaricom............................ 8

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

Mumias................................ 6

Telkom ................................. 8

ABC Capital.........................19

Sasini ....................................7

FedEx...................................15

KCB......................................19

ECB........................................7

KeNHA.................................16

Equity..................................19

KDN .......................................7

KePRA .................................16

ICF ...................................... 20

Airtel .....................................7

KRB...................................... 17

Brent Oil ............................ 20

Wednesday April 8, 2015 | BUSINESS DAILY

TOP NEWS

Safa≥icom c≥acks down on subsc≥ibe≥s in ai≥time f≥aud »From Page 1

ﬁrm’s computer system and stealing electronic airtime. Security systems The Directorate of Investigations He said Safaricom continues to invest (CID) is reportedly pursuing the mas- heavily in technology and security systerminds of the electronic theft and tems to track and identify fraudulent acabout 10,000 Safaricom subscribers tivity on its network given the evolving who bought the stolen airtime at half nature of opportunistic crimes. “We constantly monitor our busithe market price. The subscribers face a charge of ness for fraudulent activity and are aggressively dealing with unlawful activity handling stolen property. Alex Mutuku yesterday appeared by pursuing prosecution to the fullest before a magistrate at Nairobi’s Mili- extent of the law,” he added. mani law courts where his Mr Collymore was, case was set for hearing on however, categorical that May 19,2015. Whethe≥ you have the incident is not related Mr Mutuku is charged in any way to Safaricom’s stolen Sh100 with collaborating with othscratch card suppliers who ers, at an unknown place o≥ Sh100,000, have been able to uphold within Nairobi, to steal airthe same levels of scrutiny o≥ if you have time valued at Sh20,000 bein their business as Safaridisclosed a longing to Safaricom. com has. The charge sheet says custome≥’s data, Fraud architects the alleged crime was f≥aud is f≥aud The architects of the fraud committed by interfering with the functioning of Saare said to have broken into BOB COLLYMORE faricom’s computer system Safaricom’s computer sysSAFARICOM CEO with intent to procure the tems and stolen airtime suspect an advantage. which they sold in the market at half Bob Collymore, the Safaricom chief the retail price. Mr Mutuku is, for inexecutive, declined to comment on the stance, alleged to have bought airtime subject insisting that the matter was worth Sh20,000 for Sh10,000. under investigation. The perpetrators of the crime are “Unfortunately, we cannot make said to have created a huge market for speciﬁc comments on this query at this the stolen airtime by informing friends time as the case is still under investiga- and relatives where to buy from, caustion,” Mr Collymore, said. ing alarm within Safaricom.

UNHCR Country Representative Raouf Mazou (left) and Safaricom CEO Bob Collymore during the launch of Safaricom’s 2014 Sustainability Report in October last year. FILE Some of the stolen airtime was traced to friends and relatives of the masterminds, having been sent to them for free. Safaricom has used serial numbers of the stolen airtime to trail their circulation in the marketplace, blocking thousands of consumers found to have handled it. Unsuspecting subscribers whose phones were blocked and reported inability to use their phones soon found themselves under police radar, facing arrest for fraud. Most suspects were arrested at Safaricom’s Nairobi headquarters and handed over to CID oﬃcers at Parklands Police Station. The police are relying on Section 84B (b) of the Kenya Information and Communication Act to deal with the suspects. Safaricom has more recently been battling claims of fraudulent activities on its network. Last month, the telecoms operator refuted claims that its employees were involved in rigging an online customer’s competition. The telecoms giant, however, admitted that “the social media activation was compromised by one or possibly several tech-savvy individuals who deployed ‘Internet bots’

to increase their chances of winning in the competition”. In the year ended March 2014 Safaricom’s total revenue stood at Sh147 billion, with nearly 64 per cent coming from the voice calls segment of the business. Increased cases of electronic theft have seen Safaricom develop some of the most ruthless anti-fraud regulations in corporate Kenya that saw 56 employees get axed last year compared to 33 a year before. “Whether you have stolen Sh100 or Sh100,000, or if you have disclosed a customer’s data, fraud is fraud. We have let people go,” Mr Collymore said in a previous interview. The company also issued 16 employees with warning letters while seven were reported to law enforcement agencies. Safaricom says in its Annual Sustainability Report 2014 that it conducted 32 audit reviews in the period, three of which were the result of special requests from management. The investigations covered various frauds, including asset misappropriation, fraudulent expense claims and corruption cases. The report indicates that Safaricom assessed each of its 12 divisions

for risks related to economic crimes. Procurement fraud, losses during data migration, unauthorised termination of international traffic, underinvoicing and sabotage top the list of crimes under the investigators’ radar. Safaricom’s sustainability report highlights the firm’s performance on economic, environmental, social and governance fronts. The telecoms giant is among the few companies that regularly publish fraud statistics in a market where firms, according PricewaterhouseCoopers (PwC), prefer to remain silent on economic crimes fearing a public relations backlash. In 2012, Safaricom fought a court battle after it lost nearly Sh100 million in a fraudulent banking scheme hatched and executed by its agents. It sued 13 former agents for obtaining goods worth millions of shillings using forged banking slips.

Reputation loss Reluctance by most companies to sue or dismiss employees who have committed fraud for fear of reputation loss is also behind the rise in theft at the workplace, PwC said, adding that the extent of fraud could be appreciated better when the non-ﬁnancial implications are considered, including loss of customers, business reputation, and low employee morale. In Kenya, prosecution and sacking of workers due to fraud has mainly involved public servants and those employed by parastatals. PwC said in its global survey conducted in 2012 that Kenya recorded the highest level of economic crime among 78 countries last year, with procurement fraud and theft of assets and money at work rising. mokuttah@ke.nationmedia.com

Budget boss o≥de≥s counties to ≥ecove≥ illegal allowances Sh124,000-amonth limit set by SRC as sitting allowances for each MCA. The OCOB report shows that Uasin Gishu, headed by Governor Jackson Mandago, tops the list of reckless spenders, having paid its MCAs average sitting allowances of Sh312, 339 each in the ﬁrst half of the current ﬁscal year. Kakamega (Sh134,700), Kirinyaga (Sh141,894), Kisii (Sh148,699), Migori (Sh185,792), Nyandarua (Sh138,975) and Nyeri (Sh146,389) also breached the set limit. Others were Siaya (Sh142, 995), Taita Taveta (Sh124, 598), Trans Nzoia (Sh178,168), Turkana (Sh143,722) and Wajir (Sh126,958). The report also shows that Turkana county assembly spent Sh41.39 million on sitting allowances, exceeding its annual budget allocation of Sh10 million »From Page 1

by 413.9 per cent. The counties spent Sh3.72 billion on foreign and domestic travel in a spending spree that also beneﬁted staﬀ already allocated county government vehicles. The directive to recover money al-

ready paid out to the MCAs is particularly expected to rekindle the animosity with governors. Corruption and diﬀerences over travel and sitting allowances have been cited among the factors that led to a string of

impeachment motions against governors during the ﬁrst months in oﬃce. Similarly, poor counties lead the pack of heavy spenders in domestic and foreign travels. Turkana, which is among Kenya’s poorest regions, for instance spent Sh241.9

million on this budget-line followed by Tana River’s Sh183.94 million. The report shows that Wajir had already spent 87.5 per cent of its travel budget of Sh120 million by first half of the fiscal year. The reports shows that Nakuru County, headed by Governor Kinuthia Mbugua and Murang’a under Mwangi wa Iria, had already exceeded their annual travel budgets by 104.6 per cent and 135 per cent respectively in the first six months of the year. “This implies that funds meant for other activities were diverted to pay expenditure on travel,” the report says. The 47 counties had prepared a budget of Sh8.52 billion for domestic and foreign travels. By end of December, MCAs had spent Sh1.65 billion while county executives had taken Sh2 billion. omondi@ke.nationmedia.com

Wednesday April 8, 2015 | BUSINESS DAILY

ECONOMY & POLITICS NEWS I REVIEWS I ANALYSIS

UK ≥esponds to Uhu≥u with new t≥avel adviso≥ies SECURITY Move is

seen as another blow to the country’s battered tourist industry fore gunmen from Al-Shabaab group killed 148 people when they stormed Britain’s Foreign Office (FCO) said it had the Garissa University College campus no choice but to extend its warning to on Thursday UK citizens not to travel “We have a responsibility to to any part of the Keninform British citizens of poyan coast despite the tential threats aimed at both We have a discomfort it caused Kenya and the international ≥esponsibility to community. Our travel advice Kenyan authorities. The FCO said in a info≥m B≥itish solely reflects our objective assessment of the security posistatement yesterday citizens of tion and is kept under constant that the UK government had the respon- potential th≥eats review,” the statement said. sibility to warn its citiBritain toughened its zens of potential threats warning to citizens travelling STATEMENT BY BRITAIN’S FOREIGN OFFICE in any part of the world to Kenya on March 27 and the based on intelligence it FCO statement is UK’s first response to Kenya’s discomfort has gathered. The statement is seen as an apparent with the alert, which is a blow to the response to President Uhuru Kenyat- country’s battered tourist industry. ta’s rebuke of the latest travel advisory The previous advice issued in May with Kenya adding that the alert was told Britons to avoid a smaller portion of the coast, areas near the Somali borbased on untrue information. Mr Kenyatta’s comments came be- der and parts of Nairobi, citing threats BY PAUL REDFERN

Tourists wait at the Moi International Airport for a ﬂight back to the UK following a travel advisory last year. FILE including Somali Islamist group AlShabaab. The latest FCO travel warning advises Britons against non-essential travel to the Kenyan coast apart from the region around Diani Beach even as the authorities insisted that a large part of Kenya remains outside the marked region. “The vast majority of Kenya falls outside of our advice against all but essential travel,” the statement said.

Job loss fea≥s mount as mo≥e hotels shut down BY MATHIAS RINGA

More hotels in Kilifi and Kwale counties are expected to close down this week as the low tourist season sets in just after the relatively busy Easter holiday. The number of hotel workers rendered jobless is expected to rise above 30,000 as hotels across the region brace for a further decline in international guests. Yesterday, Kenya Association of Hotelkeepers and Caterers (KAHC) Coast branch executive officer Sam Ikwaye said that before Easter, 23 hotels in Malindi and Watamu resort towns in Kilifi county as well as those in Diani, Kwale county had already shut down due to the international tourist drought. As a result of the low season, he said, more hotels were expected to close down for renovations in Malindi, Watamu and Diani tourist towns. “In the wake of the low season, we expect the number of closed hotels to soar above 23 while more than 30,000 workers will be out of work,” he explained.

Closure 23 hotels in Malindi and Kilifi had already shut down due to lack of international visitors The KAHC official said hotels in Mombasa would now depend on domestic tourists and conferencing to stay afloat. He projected that hotels in Mombasa would have an average occupancy of between 40 per cent and 60 per cent this month down from occupancy of between 70 per cent and 90 per cent during the just ended Easter holiday. Mr Ikwaye said hotels in Diani would average at between 15 per cent and 30 per cent down from between 60 per cent and 95 per cent at Easter holiday. In Malindi, hotels currently havean occupancy of between 15 per cent and 20 per cent down from 50 per cent and 70 per cent over Easter. The KAHC official urged the government to address the security concerns to enable the United Kingdom, the US, France and Australia lift the travel ad-

visories which had crippled the sector. He appealed to the government to improve roads in resort towns, national parks and game reserves ahead of the next high tourist season. In Diani, Leopard Beach Resort general manager Mohammed Omar said the hotel occupancy had plummeted to below 30 per cent down from 98 per cent during Easter. He explained that over Easter the hotel had 80 per cent domestic guests while the rest came from Germany and Italy. “At the moment, we have few guests as majority of the locals who were here to celebrate Easter have returned home” he said. “During the low season, we shall depend on local and regional tourists as well as conferences to survive the hard times,” he added. In Malindi, Ocean Beach Resort general manager Robert Marini said the hotel had an occupancy of 20 per cent down from 70 per cent during Easter.

“This includes Kenya’s safari destinations in the national parks, reserves and wildlife conservancies; including the Aberdare National Park, Amboseli, Laikipia, Lake Nakuru, Masai Mara, Meru, Mount Kenya, Samburu, Shimba Hills, Tsavo.” Kenyan hoteliers however fear that the latest attack will further dampen interest from UK tourists. Already 23 hotels have closed in the ﬁrst three months of the year, and ho-

teliers also reported new cancellations but said the true extent of the damage would become clearer when European tour operators return to work after the Easter holiday. “The Garissa attack simply sealed our fate,” Mohammed Hersi, a Kenyan hotelier and chair of the Kenya Coast Tourism Association, told Reuters in Mombasa. Nearly 186,000 British nationals visited Kenya in 2012, according to the last official recorded figures, but numbers are reported to have fallen dramatically since then. The number of foreign tourists visiting Kenya is expected to have fallen by around 40 per cent in the year ending 2014 and will drop by a similar percentage in the first half of 2015. This outlook is behind Kenya’s anger at UK alerts. On Wednesday, just a day before the Thursday Garissa attack, Mr Kenyatta dismissed London’s advisories as meant to prevent UK’s taxi drivers from travelling to Kenya even as he highlighted US President Barack Obama’s planned July visit as a mark of confidence in the country’s security.

BUSINESS DAILY | Wednesday April 8, 2015

ECONOMY & POLITICS

City Hall mulls ≥eview of ≥oundabouts ≥ule afte≥ chaos

County ofﬁcers display rotten chicken meat at Central Police Station seized at Naivas Supermarket in Nakuru on April 3, 2015. SULEIMAN MBATIAH

TRANSPORT Closure leaves motorists held in trafﬁc jams for hours

Rotten chicken meat lands Naivas manage≥ in cou≥t

BY NEVILLE OTUKI

City Hall will in the next two days decide on whether to review the new traffic rules that bar motorists from making right turns on major roundabouts in Nairobi that yesterday caused heavy snarl-ups. County executive for roads Mohammed Abdullahi said they are monitoring the impact of the new rules in easing traffic jams. Mombasa Road yesterday morning choked with traffic blamed on drivers who lost direction upon learning there was no right turn and U-turns at the Nyayo Stadium roundabout, prompting delays of up to four hours. “We are monitoring this for another day or two to establish whether it is working or if we can improve on gray areas,” Mr Abdullahi told the Business Daily on Tuesday. The county executive, however, said he was hopeful the one-way continuous flow of vehicles would help ease snarl-ups when drivers get familiar with the new routes. “It may require motorists to go an extra kilometre, taking them a few minutes compared to previous situation where people spent hours stuck in one spot,” said Mr Abdullahi. To guide traffic flow at roundabouts, City Hall has barricaded passageways for making right and U-turns. 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 longterm solutions like building flyovers and dual carriage ways. But yester-

BY JAMES KARIUKI

Nyayo Stadium roundabout barricaded . Motorists were yesterday held up in traffic jams for up to four hours. DIANA NGILA day dozens of motorists were forced to change routes at the roundabouts on short notice, causing confusion. Motorists from Industrial Area using Lusaka Road to the city centre are not 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. However, the Westlands roundabout yesterday did not suffer as much as traffic flow was steady. “We have studied the traffic movement patterns of the city and established that the disuse of roundabouts will significantly ease flow,” said Mr Abdullahi who cited Mombasa Road on which three in every vehicles plying the route drive either towards or out of the central business district, calling the need for one-way continuous flow. Motorists from the city and Rhapta Road are not allowed to turn into

Westlands. They are instead expected to proceed to a U-turn at Brookside Drive then make their way back to Westlands. Equally, those from Westlands driving into Rhapta Road or Kangemi are not allowed to turn at the intersection, but will drive on to the U-turn near Consolata School. Exiting the road at Chiromo to Riverside Drive has also ceased with motorists required to proceed to Westlands roundabout and exit using Rhapta Road towards Kileleshwa. Nairobi Governor Evans Kidero announced the plan to do away with five roundabouts in March in managing traffic flow. Mr Kidero said they would be substituted by signalised intersections to improve flow by about 30 to 40 per cent. notuki@ke.nationmedia.com

West Pokot, Ba≥ingo join Tu≥kana bo≥de≥ suit BY MAUREEN KAKAH

West Pokot and Baringo counties have been allowed to join a suit where Turkana has sued the national government over natural resources and boundaries that have sparked ﬁghts in the three counties. High Court judge yesterday Isaac Lenaola allowed the two county governments to join the suit following allegations that their areas are behind the frequent raids in Turkana. Turkana wants the new boundaries declared illegal and the Interior secretary Joseph Nkaissery ordered to deploy National Police Service (NPS), Kenya Defence Forces (KDF) and National Intelligence Service (NIS) to protect their borders. “By consent, the county government of West Pokot and Baringo are hereby enjoined as interested parties

and should be served with documents of this case before close of business today,” said Justice Lenaola. Seven legislators from Turkana had also been allowed by the same judge to join the suit, the ﬁrst of its kind. Legal experts say it is likely to trigger similar suits amid escalating border rows between counties. The Attorney-General has been keen to settle the dispute out of court given that the case is between the national and the Turkana county government. Through lawyer Jotham Arwa, the Turkana county government and residents sought to have Kenya revert to the initial boundaries that existed before 1992. They say they have suﬀered indiscriminate killings, theft of livestock and destruction of property in violation of their fundamental rights.

They also want the government to evict what they say are raiders from Baringo and West Pokot counties who have occupied Turkana county. The residents want a declaration by the court that no other person or county government is entitled to exploit natural resources within Turkana unless they have been permitted by their assembly. They gave the example of Turkwel Gorge Electricity Power generation facility leased to Kenya Electricity Generating Company (Kengen) by the defunct Turkana County Council that was being controlled from West Pokot. The petition also seeks to compel the national government to bring to an end the incessant raids that are carried in Turkana. The case will be mentioned on April 28 before Justice Mumbi Ngugi and on May 26 for further directions.

A manager at Naivas supermarket chain was yesterday charged in a Nakuru court with oﬀering for sale rotten poultry meat. Stephen Karanja denied the charges when he appeared before Senior Resident Magistrate Judicaster Nthuku and was released on a Sh20,000 cash bail. The court heard that the supermarket’s Nakuru branch displayed 27 pieces of rotten chicken meat for sale to customers on April 3. Lawyer Francis Mwangi discounted the claims by the public health department, saying he read mischief since the aﬀected poultry meat pieces were being kept in the return-to-supplier deep freezer await-

ing collection by suppliers. He urged the court to visit the supermarket and confirm the claim, saying the exhibit was not removed from the sale counters as claimed by the public health department. Mr Karanja was arrested on Saturday after public health officers raided the retail store after customers complained about the meat. He failed to produce documents showing the origin of the products. The manager was charged with selling products unfit for human consumption. The public health department said that the move by the supermarket chain was aimed at increasing its sales while putting the lives of its consumers at the risk of contracting food poisoning.

EACC given ultimatum on p≥oof linking Ojienda to Mumias f≥aud BY BRIAN WASUNA

The High Court has given the antigraft watchdog until Friday to present detailed findings showing that lawyer Tom Ojienda and Nairobi governor Evans Kidero colluded to defraud Mumias Sugar Company of Sh280 million. Justice Isaac Lenaola told the Ethics and Anti-Corruption Commission (EACC) yesterday to file the investigation report after Prof Ojienda claimed the agency unlawfully obtained a warrant from Kibera Law Courts to investigate his Standard Charted Bank account. A report presented to Parliament by President Uhuru Kenyatta indicated that Prof Ojienda allegedly received Sh280 million from Mumias in 2012 for legal services he did not render. The payment, the EACC states, was approved by Dr Kidero who was then Mumias’ managing director. The EACC has been investigating claims that Dr Kidero wired Sh280 million to Prof Ojienda’s personal account for legal services to Mumias, which it believes were not rendered. Prof Ojienda now wants to stop any further investigations into his bank accounts. “The EACC is hereby granted three days to file its report on investigations into the accounts of Prof Ojienda & Wanyama Advocates and Prof Otieno

Sh280

The amount millions of Kenya shillings under dispute. Odek held in Standard Charted Bank, Nakuru branch,” the judge said. Prof Ojienda, who served as LSK chairman between 2005 and 2007, holds that any funds he received from the struggling sugar miller were for legal services he rendered. The senior counsel now wants Director of Public Prosecutions Keriako Tobiko to order investigations into Mr Michael Kasilon and Mr Eustase Waweru for perjury, claiming the oﬃcers lied to the Kibera court to convince the magistrate to issue the warrant. He argues that the EACC has no authority to meddle in matters regarding legal fees he charged the sugar company, as such issues can only be determined by the Advocates Disputes Tribunal. “The EACC and its investigators are neither the Advocates Complaints Commission nor the Disciplinary Tribunal thus lack any locus to even purport to investigate an alleged dispute paid by a client,” Prof Ojienda added. Justice Lenaola will give further direction on the matter on Friday.

Wednesday April 8, 2015 | BUSINESS DAILY

CORPORATE NEWS NEWS I REVIEWS I ANALYSIS

Sasini looks to p≥oﬁt boost with Sh1bn land sale

Sasini net profits (Sh mn) The firm is expected to make a large gain from the land sale in the current financial year

OUTLOOK The NSE-listed ﬁrm’s earnings last

peaked at Sh993m and hit Sh45m low in 2014 BY VICTOR JUMA

Agricultural ﬁrm Sasini is set to sell 513.7 acres of its leasehold land, a transaction that will earn it Sh1 billion and potentially boost earnings in the current ﬁnancial year. The land sale will be completed through the disposal of its subsidiaries Mweiga Estate and Wahenya Limited which hold 266.7 and 247 acres respectively. Sasini said in its latest annual report that the land would be sold at 737 times its book value, but did not disclose what the proceeds would be used for.

“Subsequent to the year ended September 30, 2014, the group made the decision to sell leasehold land with a net book value of Sh1.39 million at an estimated selling price of Sh1.02 billion,” the ﬁrm said. This means that Sasini will book a gain of Sh1 billion in the transaction, potentially boosting its proﬁt in the current year ending September from the exceptional item. This could in turn see the company raise its dividend in the period, having declared a payout of Sh0.25 per share for the year ended September last year. Proceeds from the sale could also be used to fund fresh investments by the

SOURCE: COMPANY REPORTS

Mr Naushad Merali FILE company. The large profit signals the fast appreciation of land values in the country, with Sasini taking a conservative stance in accounting of its land holdings. The firm said a revaluation of its leasehold land by Knight Frank Valuers Limited in September last year found the assets to be worth Sh3.74 billion. Despite the verdict, Sasini carried the leasehold land in its books at Sh20 million. “The revaluation has not been adopted in the financial statements,” the company said in a statement. The land sale is the latest sell-off seen among companies in which business-

man Naushad Merali has significant or controlling interests, signalling a reorganisation of his business empire. Mr Merali has earned billions of shillings from sale of all or part of his interests in several firms including Equatorial Commercial Bank (ECB), Airtel Kenya, Swift Global, and Kenya Data Networks (KDN). Sasini’s land sale comes at a time when the company’s margins have suffered from high operating costs and flat sales. It made a net profit of Sh45.4 million in the year ended September, half

of what it posted the year before. This came as sales dropped two per cent to Sh2.7 billion, with cost of goods sold rising 1.6 per cent to Sh2.07 billion. The company’s net profit last peaked at Sh993.7 million in 2010 when its turnover stood at Sh2.2 billion, underlining the falling margins over the years. Sasini has blamed the sluggish sales on a mix of reduced output and lower prices of its two key commodities –tea and coffee. The company also breeds dairy cattle, with its operations spread in Bomet, Mombasa, Nyeri and Kiambu. The Nairobi Securities Excange-listed firm is betting on cost-cutting and value addition to its products to grow earnings in the coming years. “The recent poor performance of black tea in the international markets has called for fresh thinking, and as a response to this, the company has implemented a raft of cost saving measures and value propositions, which included review of loss making enterprises,” the firm’s chairman James Mcfie said in a statement. “Value addition is an area we are currently interrogating with the view of ensuring that most of our products are sold as value added products.” vjuma@ke.nationmedia.com

BUSINESS DAILY | Wednesday April 8, 2015

CORPORATE NEWS COUNTY BUSINESS

Safa≥icom sc≥aps postpaid c≥edit limit befo≥e ≥eview IMPACT Customers who now exhaust their

monthly allocations will make a prepayment BY MUGAMBI MUTEGI

sometime last year and the process Safaricom has scrapped the credit came to an end beginning of this limit on its postpaid tariffs ahead of month,” a Safaricom customer care the planned revision of the bundles representative told the Business under the popular calling service Daily, with several others confirming the decision. later this month. Customers on the tarThe telecommunicaiff pay either Sh1,000 or tions firm on March 31 Te≥mination of Sh2,500 per month for a completed the phased elimination of the facility mix of talk time and text the p≥oduct is that allowed customers to messages (for use within not an option; spend up to Sh2,500 upon and outside Safaricom’s custome≥s will exhausting their monthly network) as well as data allocations before the re- have to be offe≥ed bundles. plenishment date. These resources are the ta≥iff unde≥ replenished All customers on the on the first new te≥ms.. Sh1,000 and Sh2,500 Kaday of every month. SAFARICOM OFFICIAL ribu postpaid tariffs will Subscribers who exnow have to make prepayhaust any of the resourcments if they use up their es beforehand were, unminutes, text messages or Internet til now, entitled to a credit of either bundles before the month ends. Sh1,000 or Sh2,500 extra credit for “We started resetting the credit use before the month ends. limits for postpaid customers to zero A customer who, for instance, spent

Safaricom customer care staff serve clients: The company has scrapped the credit limit on its postpaid tariffs. FILE Sh350 to buy extra bundles and text messages, would therefore receive a bill of Sh1,350 –an undefined billing system Safaricom has now scrapped. “Going forward any postpaid customer who exhausts his resources ahead of the due date will have to make a prepayment to access the service. At no point will customers get bills above their allocations,” said the Safaricom representative. Safaricom is this month expected to unveil a revised Karibu tariff proposition for its customers, having said the current rates have been financially unsustainable since their introduction in 2011.

Telkom Kenya plans shutdown of CDMA netwo≥k by end month BY JAMES KARIUKI

Kenya’s oldest phone operator Telkom Kenya will at the end of this month switch off its CDMA network that has served as a wireless version of its regular landline service. The firm, which trades under the brand name Orange, communicated to its customers the decision to terminate the Code Division Multiple Access (CDMA) service effective April 30. “Kindly visit your nearest orange shop to have your line migrated to our GSM network,” the notice reads. The move will lead to losses for CDMA phone users since their gadgets will become obsolete given that they are not compatible with the GSM network. Telkom assured its customers that they will be allowed to maintain their old numbers after the swap from the CDMA infrastructure to the GSM technology. The CDMA network was introduced to counter the Global System for Mo-

bile Communications (GSM) technology with its key market being homes and in offices. Fixed lines subscriptions have, however, registered a long-term decline despite Telkom’s rivals like Safaricom joining this niche market with desk phones powered by GSM network. Statistics from the Communications Authority of Kenya (CA) show that fixed wireless lines stood at 132,017 in December, down 7.5 per cent from 142,760 in September. The fixed line numbers are expected to drop even further with the cancellation of the CDMA service. While CDMA and GSM are virtually matched in terms of voice and data capabilities, the latter has been the most successful in the local market. Telkom’s CEO Vincent Lobry was quoted as saying that the switchover from CDMA to GSM was necessitated by rapid technological changes. “CDMA is fast becoming obsolete around the world and the maintenance of the same will not be a simple affair

Rather than cancel the tariff, Safaricom in January announced it will either increase the cost of each bundle or decrease its size at the current rates to maintain its customers while ensuring profitability. This will allow the firm to retain those already subscribed to the tariff and begin taking on new subscribers. “Termination of the product is not an option; customers will have to be offered the tariff under new terms, which are still being finalised,” a Safaricom official told the Business Daily in an earlier interview. “The new tariff will be made public in April and will take effect the fol-

lowing month. Those who choose to continue will be migrated.” The latest industry ﬁgures from the Communications Authority of Kenya (CA) show that Safaricom’s postpaid subscribers grew from 575,727 in September to 702,198 in December, a 22 per cent increase. Safaricom also has the Advantage Postpay plan which allows customers to spend as they wish and pay the accrued bill at the end of the month. The telecom ﬁrm also has special postpaid plans for corporate clients. pmutegi@ke.nationmedia.com

US takes on ﬁ≥st antit≥ust e-comme≥ce p≥osecution

Switch to GSM Telkom told its customers that they will be allowed to maintain old numbers after the swap from CDMA to GSM technology. for any telco in the mid and long term. This switchover will allow us to focus our strategic effort on the advancement of GSM technology in this market,” he said. The collapse of CDMA spells another major setback for Telkom Kenya after a well-planned move by its French owner France Telkom to sell its 70 per cent stake to Viettel Group flopped on major disagreements with the Kenya Government which holds a 30 per cent stake. The mobile operator also suffered a major blow when the India-based Essar sold its Yu mobile assets to the market leader Safaricom while its 2.7 million customers were absorbed by Airtel.

The US Department of Justice’s antitrust division has announced its first prosecution specifically targeting Internet commerce, saying a man has agreed to plead guilty to conspiring to illegally fix the prices of posters he sold online. David Topkins was accused of conspiring with other poster sellers to manipulate prices on Amazon.com Inc’s Amazon Marketplace, a website for third-party sellers, from September 2013 to January 2014, according to papers filed in San Francisco federal court. The Justice Department said Topkins also agreed to pay a $20,000 (Sh1.8 million) criminal fine and cooperate with its probe. His plea agreement requires court approval. Contact information for Topkins’ lawyer was not immediately available. No one answered a phone call to a David Topkins listed in San Francisco. Topkins was accused of conspiring with other poster sellers to use algorithms, for which he wrote computer code, to coordinate price changes, and then share information about poster prices and sales.

The Justice Department said this activity violated the Sherman Act, a federal antitrust law, by causing posters to be sold at “collusive, non-competitive” prices. “We will not tolerate anti-competitive conduct, whether it occurs in a smoke-ﬁlled room or over the Internet using complex pricing algorithms,” Assistant Attorney General Bill Baer of the Justice Department’s antitrust unit said in a statement. “American consumers have the right to a free and fair marketplace online, as well as in brick and mortar businesses.” Amazon Marketplace competes with eBay Inc in letting merchants sell goods online. It is separate from Amazon’s business where the Seattlebased company sells books, electronics and other goods online. Amazon was not charged in the case against Topkins. It did not immediately respond to a request for comment. The charge against Topkins carries a maximum 10-year prison term and $1 million ﬁne, the Justice Department said. — REUTERS

Wednesday April 8, 2015 | BUSINESS DAILY

IDEAS & DEBATE OPINIONS I REVIEWS I ANALYSIS

If it is not a≥≥ested, co≥≥uption can se≥iously ≥eta≥d economic g≥owth

Other Voices John Kerry US Secretary of State

ECONOMY Graft

kills business and investor conﬁdence while diminishing the national brand

Robert Frisk (Independent) Iran was reborn as a major Middle East nation when it agreed to limit its nuclear ambitions. If Iran and the West keep their word, however, and the distrust which even Secretary of State John Kerry admits still exists, turns into mutual conﬁdence, then this week’s compromise agreement — and compromise is admittedly a very dodgy piece of machinery in the Middle East –— could have an enormous political effect on the region. Iran could, over time, become America’s “policeman in the Gulf” as it was under the Shah’s reign.

Parents demonstrate at Nairobi Road Primary School in Nakuru in March over alleged land grabbings. Sustainable economic growth and corruption cannot live side by side. FILE

Tony Balir Former UK Premier

BY GEORGE WACHIRA

Sustainable economic growth and corruption cannot co-exist. With entrenched corruption, there is a mismatch between economic inputs and outputs with the latter being lower. Corruption diverts public resources through unaccounted for financial leakages. Even worse, corruption kills business and investor confidence while diminishing the national brand value. A Treasury Permanent Secretary in a previous government once estimated that corruption consumes about 25 per cent of the national budget. Last month a visiting Foreign Secretary from the UK remarked that corruption is a “tax” on the economy. Corruption can in deed bankrupt a nation as it did in Kenya in 1980/90s when the country was literally put on a caretaker status by the Breton Wood institutions. It is appropriate and timely that the executive has recently acknowledged that corruption is a major national problem needing full scale attention. This must be very welcome news to the business, investors and all hardworking Kenyans. It should however be appreciated that corruption has over decades penetrated virtually every area and level of Kenyan public service. This was recently compounded by the ascendancy into corruption by many elected officials at national and county levels. These are the leaders who should be partnering with the executive to fight corruption. Winning war on corruption will not be a walkover. It requires winning of the hearts and minds of all Kenyans and demonstrated resolve and

In Nigeria the president elect Muresults. Hard working Kenyans abhors corruption because in it they see theft hammadu Buhari will win or lose the of their hard earned resources. The unwar on corruption depending on how employed and the poor lose hope when quickly, resolutely and ferociously he they see millions of shillings going into launches his fight against corruption. already full pockets, instead of being This is in the clear knowledge that the corruption dragon is always many used to create jobs. steps and days ahead of government But what is most worrying is the bureaucracy. Kenyan culture of idolizing the moneyed persons irrespective of sources of To gain the hearts and minds of matheir wealth. Kenyans tend to vote for jority of Kenyans the executive should persons most endowed with loads of simultaneously launch a campaign to cash. This way we easily and knowingly weed out corruption at the lower levels put corrupt persons into elective posiof service delivery. This is where routions where they sanitise their wealth tine corruption painfully impacts Kenwhile furthering more corruption. . yans everyday. The ordinary Kenyan Yes it is possible to fully marshal the will hardly understand the complexicitizens against corruption, but only ties of national mega corruption, but will easily relate to impacts of routine if they are assured that it is a serious corruption by service providers and and sincere effort. For a few months law enforcers. after President Kibaki If the governgot into office in 2003, Ha≥d wo≥king ment is to launch an the public in general was effective campaign enthusiastic, united and Kenyans abho≥ against corruption, determined to eradicate co≥≥uption corruption under the sloit will need to underbecause in it they gan of zero tolerance for stand what causes see theft of thei≥ corruption. and sustains grand ha≥d ea≥ned However this euphoria corruption in Kenya. collapsed within months It should undertake ≥esou≥ce when a good number of an honest analysis of “hungry” former oppothe corruption DNA sition politicians took in Kenya. To start with, it will be interesting to office and immediately commenced understand why a high prevalence of accumulating illicit wealth .As a recorrupt deals occurs immediately after sult , the government lost moral high ground, and the war on corruption was national elections when new governimmediately and irretrievably lost. ments and officials take office. Is there a correlation between elective politics, It is usually during the initial few campaign funding, and corruption? days of a new government after elecAre unsuitable, inexperienced and cortions that the public are united in rupt persons appointed to sensitive ofreadiness for a grand noble action.

fices purely on basis of their political loyalty and election funding? When we opted for easier, quicker, and apparently cheaper project financing from the East, did Kenya unwittingly introduce systemic weaknesses in our procurement systems? I say this because many of corrupt deals in Kenya have been related to contractors and project partners from the East. It is said that Western businesses and financiers have often shunned quoting for projects in Kenya due to an apparent lowering of procurement standards and accountability. We need to interrogate this assertion, and if necessary undertaking a controls risk assessment on procurement systems especially in respect of the Eastern countries. There is nothing intrinsically wrong with contractors from the East or any country for that matter. The problem may be in our procurement policies and processes and unethical officials, politicians and power brokers. Yes, we welcome the new war on corruption, but it should be done professionally. It should not be a once off exercise targeting a number of individuals, but a formal and continuous program that focuses and delivers sustainable zero tolerance for corruption. Only then can we correctly and proudly pronounce that Kenya has strong governance and business ethics standards that can support sustainable economic development. The writer works at Petroleum Focus Consultants Wachira@petroleumfocus.com

Simon Jenkins (Guardian) The condor is back, wheeling dark overhead. Far beneath, the villagers shudder and lambs rush to their mother’s side. The shadow of Tony Blair brings with it memories of past wars and pestilences, of slick and spin. Blair merely loves Europe and promises there will be “chaos” if we don’t. Down on reality street, Europe may not be a grand election issue, but it is a niggling one. Voters are sceptical of the virtues of EU membership. Benjamin Netanyahu Israeli PM

Howard Jacobson (Independent) sraeli Prime Minister Benjamin Netanyahu lacks imagination. He is attentive to Jewish apprehension, but blind to the despair of others. To promise neither change nor hope to people dispossessed is inhumane and non-strategic. Thus does a lack of imagination fetter those on both sides of this conﬂict. And thus, more than ever, should it be clear that whoever doesn’t listen, whoever lacks the imaginative capacity to listen, will be forever padlocked to himself.

BUSINESS DAILY | Wednesday April 8, 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

Of what use is budget oﬃce if counties continue defying it?

t has now emerged that six counties – Nairobi, Homa Bay, Machakos, Murang’a, Meru and Trans Nzoia – have been spending money before banking it in their main account. This is in defiance of the Constitution which states that all revenues go to the County Revenue Fund. Time has come when rule of law should be invoked and no county should be left to continue with the reckless defiance. Counties know all too well that the Office of the Controller of Budget is a constitutional office with a mandate to monitor budget execution and reporting to Parliament every four months. The onus is on the relevant parliamentary committee to invite the public entity to answer the allegations – and if need be – Parliament can stop the transfer of funds to the County until transparency measures are put in place and in line with Article 225. But having said that, and before we get there, there is need for all county governments to promote fiscal discipline, improve accountability and transparency in their backyard. Although that is the policing role of the office of the controller of budget, governors must adhere to rules set by Parliament in governing public funds. The problem is that neither Parliament nor the office of the controller of budget has seen it

fit to invoke Article 225 and rein in on the fiscal indiscipline taking place at the counties. We have witnessed defiance from select counties and raw chest-thumping. Another emerging issue is that some counties are paying commuter allowances to officers who have already been allocated cars. The controller of budget has recommended that these monies should be recovered. Some other counties are paying allowances above the levels recommended to by the Salaries and Remuneration Commission. It is time that accounting officers learn the import of Article 226, which puts liability for the loss of public money in their hands. It states: If the holder of a public office, including a political office, directs or approves the use of public funds contrary to law or instructions, the person is liable for any loss arising from that use and shall make good the loss, whether the person remains the holder of the office or not.” We hope that it won’t be long before we start seeing the first culprits hurled to courts to answer charges. We cannot promote fiscal discipline within both the national government and in the devolved units without invoking penalties. If we don’t do that from the onset, we can prepare ourselves for mega-scandals.

Publish mine≥al laws

he management of natural resources is key to the economic growth of any country. That Kenya has been making moves to improve on this is a welcome development. Kenya has recently discovered oil that is in commercial quantities and the country should endeavour to exploit the commodity in a manner that is sustainable. At the end of the day such a resource is supposed to push the economic growth of the country. It is not just about oil. There have also been other minerals – such as niobium and coal – discovered in various parts of the country and which are also of commercial

quantities. It is now a well-known fact that some countries have mismanaged their natural resources. The resources have in turn become a curse for the country rather than the blessing they are supposed to be. This is the case for countries such as the Democratic Republic of Congo and South Sudan that face conﬂict. Kenya is working with the International Monetary Fund to ensure that laws are put in place to streamline the management of the resources. With only about three years away from oil production, this laws should be published soon to allow for public comment before they come into eﬀect.

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

“Some days the only good thing about my job is that the chair spins...”

Add≥ess capacity gaps in Islamic banking JAAFAR SHEIKH ABDULKADIR BANKING

ith the uptake of Islamic financial services surging by day, governments and financial institutions are increasingly tightening the operational environments to seal loopholes and guarantee seamless products and services. Focus has been on structuring the operational architecture, by setting up several gate-keeping organs and systems. Islamic banking operates on the basis of the Shari’ah principles that promote the sharing of risks and rewards between parties, prohibition of interest, abhors financing activities that contradicts the Shari’ah rules and regulations and also forbids transactions that are clouded with uncertainties. One of the distinctive features in the provision of Islamic financial services is the existence of a Shari’ah Supervisory board that comprises of independent religious scholars and other experts in Islamic jurisprudence or Islamic commercial law. The directors or the shareholders of the Islamic financial institutions cannot be members of the Shari’ah supervisory boards as dictated by Shari’ah governance standards. Providers of Islamic banking solutions have been keen to develop an operational infrastructure to meet regulatory procedures set by the Central Bank of Kenya. In October for example, KCB Group picked three Islamic banking experts to run the Bank’s Sharia Advisory Commit-

tee, ahead of the lender’s official launch of Islamic banking services in Kenya on Thursday next week. The development of new financial products and other related innovations continues to generate challenges that have no direct references in the primary sources of the Islamic Shari’ah. For instance, the practice of charging penalties on late payments by the Islamic financial institutions was a ruling arrived at by the Scholars for the purpose of instilling discipline in customers who are negligent and fail to honour their financial commitments as expected. However, the penalties cannot be factored into the books of the financial institutions but should be diverted to charitable causes under the guidance of the Shari’ah Supervisory boards. There are two broad categories of corporate governance roles that are exclusive to the Islamic financial institutions. Firstly, there is need to re-assure stakeholders that their activities are fully compliant with Shari’ah standards and principles . Secondly, the stakeholders have a strong need to be assured that the institution maintains and improves sustainable growth. The Shari’ah Supervisory Board focuses on the Shari’ah compliance of financial structures that includes documentations, contracts, product development and the transactional processes. The board is entrusted with the duty of directing, reviewing, supervising, advising and guiding the activities of the Islamic financial institutions in a manner that enhances

VIEWS FROM ABROAD

the compliance with the Islamic Shari’ah rules and principles. The financial reports of the financial institutions offering Islamic finance should reflect the Shari’ah supervisory boards ’ clear statement that confirms that the earnings realized from sources that are non- Shari’ah compliant have been allocated to charitable causes . One of the challenges facing the Islamic finance industry is the shortage of skilled manpower that includes the Shari’ah scholars who have a good grasp of both the Islamic jurisprudence and the dynamics of financial and commercial activities. Investment in continuous trainings and capacity-building of the Shari’ah scholars, policy makers, Islamic bankers and other stakeholders shall help to bridge the skills gap in the market and facilitate the growth of the industry. The Kenya Bankers Association, the Central Bank of Kenya and the Capital Markets Authority are some of the key stakeholders in the financial sector that have so far undertaken some commendable initiatives to promote the understanding of the strategic importance of Islamic finance to the Kenyan economy. Institutions of higher learning and other relevant agencies need to develop appropriate curriculum to address the capacity gaps in the provision of Islamic finance in a bid to make Kenya the Islamic financial hub in East and Central Africa. The writer is head of Islamic banking at KCB Group

Opinions f≥om a≥ound the wo≥ld

Speaker shouldn’t protect Zuma

Improve intelligence to ﬁght terror

Nigeria has done Africa proud

House Speaker Baleka Mbete chose to misunderstand the fact that all MPs enjoy equal status in the house by virtue of having been legitimately MAIL & GUARDIAN elected by the JOHANNESBURG country’s voters. She warned opposition MPs that they were not equal to Zuma. How are we to ﬁx the defect when the speaker becomes blatantly partisan and shirks her responsibilities to be even-handedly in control of parliamentary business? Perhaps assigning the speaker position to a party different from the president’s could be a solution to the problem of how to separate these powers.

Last week, the US Embassy warned its citizens in Uganda about a possible terror threat. Police followed it up with increased vigilance and surveillance of target DAILY MONITOR KAMPALA places, including, securing border points. Police, however, did not rule out the terror threat and appealed to citizens to be more vigilant and report any suspicious people and items. Police needs every citizen’s eyes and ears in the ﬁght against criminality, including terrorism. The best way to defeat terrorism is to arrest its masterminds before they kill people or destroy any property. This requires good and credible intelligence and prosecutors.

Nigeria has just concluded successful presidential elections amid a scale-up of violent Islamist insurgency in the north-eastern THE NEW TIMES part of the country. KIGALI Boku Haram has taken over the country’s image, just as ISIL has done to the Arab world. Prophets of doom had already predicted that whichever side won, violence was bound to break out and with heavy consequences. None of that happened and yet there was a change of guard at the very top, in favour of the opposition. Countries chart the course drawn according to the wishes of its people. They do not follow scripts written by outsiders. Nigeria has proven just that.

Wednesday April 8, 2015 | BUSINESS DAILY

EDITORIAL & OPINION

The≥e a≥e positive ways of engaging students online ASHFORD KIMANI EDUCATION

ith the ban on holiday tuition, it is time to look for alternative avenues for keeping our learners focused. Most parents are grappling with what to do with teenagers especially after getting used to years of tuition during school holidays. It is also a risk having to keep these energetic teenagers idling in the houses for a whole month. The holiday tuition, apart from oﬀering teaching, was also helping in containing the teenagers from roaming around the streets. It was a management tool to keep ‘devils

at bay.’ However, with the ban now in place, many estates are littered with teenagers. The parents must be very worried because when they report to work in the morning they cannot ascertain what their teenagers may be up to. Every parent feels that their son/daughter is not ‘safe’ in the house whenever he/she goes to work. Many parents are not paying for the tuition because of the learning but rather as a way of ‘holding’ the teenagers in schools. We should begin to look for alternatives that can ﬁll the vacuum. Instead of parents and teachers

Letters

sitting down and whining they can think outside the box. Supposing, you did it through the social media? Apart from the possible risk of teenagers misusing the social media there are many positive ways of using this modern forum for the beneﬁt of our learners. One day I posted some KCSE English mock exam papers on my WhatsApp and my Facebook wall. I then alerted my students through a short text message via mobile phone. Within 24 hours most of my students had not only accessed them but they had also attempted all the questions in the three papers.

This was very encouraging considering that even the assignments that I give them in school are never done with this speed and accuracy. I received, for the ﬁrst time, very convincing answers. What amazed me most is the fact that the students were able to conduct a ‘discussion’ on social media regarding some challenging questions. In the end I had reached out to my students all of whom were at home on holiday. The level of participation on social media ‘tuition’ is higher considering that students are trying to outdo each other. The writer teaches in Kiambu

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

Set up commission of inquiry into Garissa massacre

n old adage states that wise people learn from mistakes but fools don’t. Political analysts argue that history always repeats itself where lessons are learned. Last week’s Garissa University College massacre happened in the same fashion and design like the Westgate Shopping Mall attack in 2013. The Garissa attack calls for thorough scrutiny to unravel the root cause. Glossing over serious security lapses is bad for the country. Civilised societies will strive to bring such tragedies to closure through a judicial inquiry. Kenyans are looking to the government to institute a probe to help the country respond better to future catastrophes. Both the Garissa and Westgate attacks were perpetrated by terrorists and targeted soft spots. While the former involved a learning institution, the latter was aimed at a shopping mall. In the two cases, victimswere taken hostage and killed en masse. Why didn’t we draw some lessons from the mall attack? The Kenyan security system failed once again to take swift remedial measures. Just like in the mall case, the university tragedy conﬁrmed poor action on intelligence provided to the security chiefs. Since the twin attacks have many similarities, ﬁndings of the mall terror attack would have provided insights into how to thwart terror attacks on soft targets. Kenyans are asking many questions regarding the attack. Why did the security bosses take too long to react to the distress call by the students? What was the importance of taking the security bosses and

Why Kenya is on the f≥ontline of new p≥oxy wa≥s in Af≥ica MUMBI Z. NGUGI TERRORISM

e are a shell-shocked but resilient people who will dust ourselves off once more, and get on with the business of living our lives but many must be wondering: why us? Why are terrorists targeting our universities, malls, hotels, markets, buses, quarries … why Kenya? The hard reality is that Africa is once again a theatre for wars instigated by foreign powers in pursuit of ideological and geopolitical agendas that have nothing to do with the continent. That is essentially what proxy wars are about; a military strategy through which world powers achieve their political objectives of world domination by stoking violence in foreign lands. It is an extremely cost-effective method which ensures that others fight and die for you in far-away foreign lands. And there is a horrifying precedent in Africa that for nearly half a century caused the stagnation of the continent’s socio-economic development and democratization. Yes, it is the Cold War, thus named because it ended without a single bullet ever being fired by the armies of the two rival superpowers, the US and Soviet Union. This is due to the nuclear weapons capability of both countries which meant that direct military confrontation would result in mutually-assured destruction, a risk none of the bitter foes were willing to take.

Failed

Friends and relatives of the Garissa University College terrorist attack victims pay tribute at Victoria Park in Kisumu on Monday. TONNY OMONDI not the GSU Recce squad to scene? Belatedlresponse may have caused the high number of casualties. Like in all other tragedies, the response time determines how many people rescuers can save. Kenyans must remain united if they want to defeat the menace of terrorism. Closely knit societies are diﬃcult for terrorists to penetrate. We are paying a heavy price for not being patriotic enough and thereby giving the killers a leeway to get into the country. Leaders are guilty of perpetuating divisive politics. Time is ripe to engage ideological-based politics in place of ethnic politics. Disunity is the strongest weapon used by terrorists. That is why they are keen to divide the population along religious lines.

BENARD AMAYA via email **********

t’s disheartening that even during national tragedies, the government behaves like a pauper. Following the Garissa University College attacks where 147 people were massacred by AlShabaab terrorists, parents and relatives of the deceased are being subjected to more agony trying to identify their loved ones . Why can’t the government fund DNA testing whereby the victims DNA can be matched to those of their relatives? It might be an expensive venture but it will save the parents and relatives the pain of spending days at the morgue. ANTONY ALEX IRUNGU

via email ********** ecurity personnel should be deployed to all learning institutions. It is very necessary

to have tight security at crowded places such as churches, crusades and other public places. The soft spots are the areas the terrorists are now concentrating on. After the Westgate attack, security was tightened n major joint places across the country, especially Nairobi. After some time, the same was scaled down and security personnel became slack in their work. The security checks that were previously experienced also dwindled. This shows that the lifespan of security operations are short lived. This is what the terrorists know and capitalise on. This calls for the need to invest in long time measures other than short measures. COLLINS KIPKORIR

via email

But what is rarely mentioned is that the real theatre of Cold War military warfare was the deadly decades-long civil wars in Africa and other parts of the world in which millions of locals lost their lives. For example, most of southern Africa from Mozambique, South Africa, Namibia and Angola was in ﬂames during the Cold War as a result of this superpower rivalry. In fact, some of the more enterprising African dictators did brisk business by switching ideological sides depending on the highest bid for their loyalty. And how is the Cold War relevant to the frequent terrorist attacks in Kenya? The emerging consensus today is that the terrorism is inspired by global Jihadism. The parallels between the political ideologies of Soviet-era communism and Jihadism are uncanny. Both are revolutionary, expansionist and totalitarian political ideologies which use terror tactics to instill fear and control society. Further, the two ideological systems exploit local grievances, whether real or constructed, to incite targeted the population. Why has our country become a theatre of this new global war? Apart from the obvious institutional weaknesses, some of the geopolitical reasons are the country’s proximity to Somalia, considered the African equivalent of Afghanistan and the ultimate failed state. The writer is a PhD research fellow at the United Nations University in Maastricht, The Netherlands

BUSINESS DAILY | Wednesday April 8, 2015

NEWS INDEPTH

Kenya fails to stem insecu≥ity despite huge milita≥y spending TERRORISM Country has one of highest defence budgets

in Africa, purchased Sh19.8bn worth of advanced weapons

n a prepared speech after the murder of dozens of Kenyans last year, President Uhuru Kenyatta declared a national war on terror. “This is a war against Kenya and Kenyans,” he said. “It is a war that every one of us must fight.” It was a speech he gave in December after the killing of 36 miners working in a quarry not far from the border with Somalia. They were reportedly slain by members of the terrorist group Al-Shabaab. Once again, a few days ago, Kenyans reeled in shock, but this time at news of the massacre of at least 147 students by a small rebel band filtered through the media. Garissa University College lies northeast of Nairobi, near to the border with Somalia. A small school with a staff of 75, it was recently upgraded to give technical and vocational degrees as part of Moi University. Computer science and information technology were introduced last year. But the bucolic nature of the college, highlighted by a flock of sheep, green leaves and natural springs, was apparent on the school’s website. Despite its peaceful appearance,

the university college was a known target for the fury of the Somali-based Al-Shabaab group which has been at war with Kenya for many years. The fact that only a small handful of security guards were on duty when the attack began shocked many. The slaughter began in the dark pre-dawn hours of April 2 while everyone slept until they were awakened by the popping sounds of gunﬁre. The militants urged students to cooperate. “If you want to survive, come out. If you want to die, stay inside,” they warned the still-groggy students. “I knew those guys were lying,” said a 23-yearold student Elosy Karimi who described to a reporter how she hid in the ceiling above her bunk bed for over 24 hours. President Barack Obama, still planning a trip to Kenya, commiserated: “Words cannot adequately condemn the terrorist atrocities that took place at Garissa University College, where innocent men and women were brazenly and brutally massacred. We join the world in mourning them, many

Soldiers guard the entrance of Garissa University College. A small school with a staff of 75, it was recently upgraded to give technical and vocational degrees as part of Moi University. FILE

of whom were students pursuing an education in the pursuit of a better life for themselves and their loved ones. “ “They represented a brighter future for a region that has seen too much violence for far too long.” It was particularly inexplicable as there had been recent warnings of an Al-Shabaab attack at Garissa and other universities. A travel advisory issued by the British government just days earlier had warned against travel to Garissa. While some foreign media outlets describe Kenya as “powerless in the face of a ruthless terrorist organisation,” Kenya is a major military power in the region, having one of the highest defence budgets in Africa, thanks to two decades of a steady increase in military spending.

Highest in East Africa According to the Stockholm International Peace Research Institute (SIPRI), an independent research organisation, the country purchased Sh19.8 billion ($216 million) worth of advanced weapons in ﬁve years between 2010 and 2014, up from Sh919.4 million ($10 million) between 2005 and 2009 — marking a huge jump in the period — which is the highest in the East Africa. Yet four gunmen managed to hold oﬀ elite counter-terror police and military units called to the scene while they systematically massacred

“hostages.” This is hardly unprecedented,” Patrick Gathara, a security analyst wrote in Al Jazeera news service. “Much the same happened at Westgate (Mall) where four gunmen supposedly kept hundreds of cops and soldiers at bay for four days, apparently taking time oﬀ to pray and relax while the security agents looted the mall.” “The government responded with a crackdown that targeted the ethnic Somali population within Nairobi— little more than an exercise in scapegoating and extortion,” he said. “Similarly, Garissa itself, which is populated mainly by ethnic Somalis, has been the site for ‘security operations’—another term for collective punishment — for well over half a century.” Government’s failure to stem the rise in insecurity has not gone unnoticed in the Kenyan community, especially since Kenya’s incursion into Somalia in Operation Linda Nchi in 2011. A reduction of troops was expected in 2014 after complaints by the Somali government. A Twitter feed titled #GarissaAttack quickly ﬁlled up with comments and complaints. Ory Okolloh Mwangi, well-known ‘Kenyan pundit’, wrote:“When you look at the resources poured into winning one single seat in Kajiado Central, and then how we are responding to Garissa. Ai?” Senator James Orengo pleaded: “We know very well the consequences of a war of occupation. We must withdraw our troops from Somalia to end this. We must rethink our strategy and have a targeted and principled way of engaging Somalia rather than put our people at risk.” Questions are forming, wrote Mr Gathara, about whether this disaster is just the latest in a series of preventable terrorist atrocities that have now claimed more than 350 lives in the last two

Wednesday April 8, 2015 | BUSINESS DAILY

NEWS INDEPTH

A histo≥y of Somalia’s Al-Shabaab te≥≥o≥ists

The man alleged to be behind the terror attack on Garissa University that left 147 students dead and scores more injured . He is a former teacher at a Madrassa Islamic school. FILE Al-Shabaab ﬁghters perform military drills at a village in Mogadishu, Somalia. AFP

years. An earlier security operation, a week into the Kenyatta presidency, saw the indiscriminate arrest of over 600 Garissa residents, including newly-elected local leaders, by a security team the government itself had described as “rotten”, wrote Mr Gathara. “Now, after the latest Garissa atrocity, President Kenyatta has issued another directive of dubious legality,” continued Mr Gathara, namely calling up 10,000 new oﬃcers despite a court order freezing

police recruitment following a corruption-riddled exercise last year. “What is Kenya’s plan as far as Somalia is concerned?” asked Abdullahi Boru Halakhe, East Africa researcher with Amnesty International, regarding the Kenya’s troops stationed in Somalia. “What does the exit plan look like? Is it two years? Is it three years”? -INTER PRESS SERVICE

Who are Al-Shabaab? Al-Shabaab means The Youth in Arabic. It emerged as the radical youth wing of Somalia’s now-defunct Union of Islamic Courts, which controlled Mogadishu in 2006, before being forced out by Ethiopian forces. There are numerous reports of foreign jihadists going to Somalia to help Al-Shabaab, from neighbouring countries, as well as the US and Europe. It is banned as a terrorist group by both the US and the UK and is believed to have between 7,000 and 9,000 ﬁghters.

The loss of Kismayu has hit Al-Shabaab’s ﬁnances, as it used to earn money by taking a cut of the town’s lucrative charcoal trade. Although African Union (AU) forces are trying to squeeze Al-Shabaab further, the group is still able to carry out suicide attacks in Mogadishu and elsewhere. Al-Shabaab advocates the Saudi-inspired Wahhabi version of Islam, while most Somalis are Suﬁs. It has imposed a strict version of Sharia in areas under its control, including stoning to death women accused of adultery and amputating the hands of thieves.

What drives Al-Shabaab?

What are Al-Shabaab’s foreign links?

Al-Shabaab is suspected of links to grenade attacks across Kenya. Al-Shabaab has staged numerous attacks in Kenya. The April 2 massacre at Garissa University, near the border with Somalia, is the bloodiest so far. At least 147 people died when gunmen stormed the university at dawn and targeted Christian students. Previously the worst attack was on Nairobi’s Westgate shopping centre in 2013, when at least 68 people died. In Westgate, and other attacks, the militants spared Muslims, while killing those unable to recite verses from the Koran. There are also regular gun and grenade attacks attributed to Al-Shabaab both in border areas, where many Kenyans are ethnic Somalis, and in Nairobi. Kenya has sent its troops into Somali territory, where they have joined the African Union force battling the militants. Al-Shabaab has also set up a recruiting network in Kenya, especially around the port city of Mombasa, which has a large Muslim population.

In a joint video released in February 2012, former Al-Shabaab leader Ahmed Abdi Godane said he “pledged obedience” to Al-Qaeda head Ayman al-Zawahiri. The two groups have long worked together and foreigners are known to ﬁght alongside Somali militants. There have also been numerous reports that Al-Shabaab may have formed some links with other Islamist groups in Africa, such as Boko Haram in Nigeria and Al-Qaeda in the Islamic Maghreb, based in the Sahara desert.

How much of Somalia does Al-Shabaab control?

President Uhuru Kenyatta ﬂanked by Deputy President William Ruto, addresses the nation at State House , Nairobi following the Garissa University College terror attack last week. AFP

Although it has lost control of most towns and cities, it still dominates in many rural areas. It was forced out of the capital, Mogadishu, in August 2011 and left the vital port of Kismayu in September 2012.

What is happening in Somalia? Somalia has not had an eﬀective national government for more than 20 years, during which much of the country has been a war-zone. Al-Shabaab gained support by promising people security. But its credibility was knocked when it rejected Western food aid to combat a 2011 drought and famine. With Mogadishu and other towns now under government control, there is a new feeling of optimism and many Somalis have returned from exile, bringing their money and skills with them. Basic services such as street lighting, dry cleaning and rubbish collection have resumed in the capital. However, Al-Shabaab continues to stage periodic attacks in both Somalia and neighbouring countries. -BBC

BUSINESS DAILY | Wednesday April 8, 2015

REGIONAL NEWS TERRORISM President-elect vows to cut reliance on neighbouring armies

Nige≥ia neighbou≥s hope fo≥ a f≥esh sta≥t with Buha≥i Surveying the charred ruins of the caliphate out of Nigeria’s northeast, northern Nigerian town of Malam Faeven forced a poll delay as a regional tori, which Chadian troops and his force launched an offensive to drive own soldiers from Niger liberated them back. from Boko Haram last week, Colonel But it has been Chad’s battle-hardToumba Mohamed paused to reflect ened troops, and not Nigeria’s, that on Nigeria’s landmark election. have led in the offensive, expelling As the two nations’ forces poured Boko Haram from the major towns in into the border town on Tuesday, drivthe north in just a matter of weeks. ing out the Islamist fighters, Nigeria’s Malam Fatori —seized by Boko election commission was announcing Haram in November in fighting that the victory of opposition candidate sent hundreds of Nigerian troops stationed there fleeing into Niger — was Muhammadu Buhari. one of the group’s last “We hope that finally border footholds. the armies of Chad and Niger will be able to fight The fall of the town Boko Haram side by side We came he≥e to marked the end of the with the Nigerian army,” help ou≥ b≥othe≥ first phase of regional said Toumba, who expects action, General Seyni count≥y, when to see changes when BuGarba, Niger’s army hari, a former general and chief of staff, told prithey come to Muslim from the north, is vate Niger television take cont≥ol of sworn in. station Ténéré. the towns we’ve Boko Haram’s six-year “The second phase insurgency in northern is to secure the whole libe≥ated, we’ll Nigeria, and incumbent of the conquered terrileave tory with mopping up President Goodluck GENERAL BRAHIM SEID operations everywhere Jonathan’s failure to MAHAMAT, CHAD ARMY CHIEF that Boko Haram can be decisively counter the found. We need to be threat, were a key issue able to secure the whole of the Lake in the Nigerian election. Chad basin,” he said on Sunday. Gains by the Islamist movement, which is seeking to carve a Buhari has called Nigeria’s reli-

JOHANNESBURG South Africa detains girl trying to join Islamic State South African authorities detained a 15-yearold girl who was travelling to join Islamic State, the state security ministry said on Monday, the country’s ﬁrst known arrest linked to the militant group. The ministry said it was investigating whether Islamic State had a recruitment network in South Africa. The teenager was stopped at Cape Town airport on Sunday after evidence was found in her bedroom indicating she had been in contact with Islamic State recruiters, the ministry said.

LILONGWE Malawi earmarks $20m to purchase maize grain

Chadian soldiers display arms captured from Boko Haram militants on April 3, 2015 in Malam Fatori, in northeastern Nigeria. AFP

ance on neighbouring armies a disgrace and has vowed to restore the territorial integrity of Africa’s most populous nation. There is still work to be done. Boko Haram set Malam Fatori on ﬁre before withdrawing to the former Nigerian army camp outside of town to dig in and ﬁght. In clashes on Wednesday, 170 militants were killed, while nine Chadian soldiers died and another 16 were wounded. “Boko Haram no longer has a stronghold. But they are still a threat that must be cleaned up,” General Seyni Garba, the head of Niger’s army, said during a visit to Malam

Fatori on Friday. To date, problems of communication and coordination have stymied military cooperation between Nigeria and its neighbours. But it has also struggled to overcome distrust between armies that have not always fought on the same side. Chad occupied parts of Nigeria’s north in the 1980s. Chad army chief General Brahim Seid Mahamat said on Friday times have changed. “We came here to help our brother country. When they come to take control of the towns we’ve liberated, we’ll leave.” -REUTERS

Statue of Af≥ikane≥ he≥o defaced in new SA attack A statue of an Afrikaner hero was defaced in South Africa on Sunday, the latest in a series of anti-colonial protests that has forced the country to square its racist past with the spirit of reconciliation championed by Nelson Mandela. “I wouldn’t go up to the Nelson Mandela statue and spoil it with paint,” said Jaco Cronje, a businessman standing in front of the paintsplattered statue of the country’s ﬁfth president Paul Kruger in Pretoria, the country’s administrative capital. “There’s only one word to complete the rainbow nation and that’s respect,” said Cronje. A wave of attacks against the country’s colonial heritage began in March when young protestors at the University of Cape Town threw excrement at

a statue of Cecil Rhodes, eventually forcing the university to remove the statue of the British imperialist. The protests have gained traction in a country where over 20 years of democracy has yielded little for blacks, who today earn signiﬁcantly less than whites and are more likely to be unemployed. Constance Tjale, a 48-year-old waitress at Cafe Riche, a restaurant that looks out on the Kruger statue, showed AFP photos on her mobile phone of people wearing the red shirts of the Economic Freedom Fighters, the third-biggest party in South Africa, splashing the statue with neon green paint on Sunday. Pretoria’s mayor has also voiced support for the protesters calling for the statue to be moved from Church

BRIEFING

People look at the defaced statue of Paul Kruger in Church Square, Pretoria on April 6, 2015. FILE Square. Kruger led the Afrikaners to victory over the British in the First Boer War of 1881. He is still a hero to the white ethnic group that introduced apartheid. “It’s just one small painting,” said Blessing Manale, spokesman

for Mayor Kgosientso Ramokgopa, whose Tshwane municipality includes Pretoria. Manale said the city is moving forward with pressing criminal charges, but added that the mayor is considering relocating the statue and replacing it with “new” installations. “What do we do with all these pieces of South African history? We just want it to be balanced,” said Ramokgopa. On Monday morning, a group of girls did a traditional Zulu dance in front of the paint-smeared statue, while others posed for photos. “People are stupid, or maybe they are bored, they throw paint instead of going to church,” said David Mbada, a 53-year-old man standing in front of the Kruger statue. -AFP

Malawi will set aside $20 million for imports of its staple maize in 2015 because ﬂoods and drought were expected to cause a substantial decrease in this year’s harvest, ministers said. Torrential rains have forced Malawi, which had a bumper crop of 3.9 million tonnes in 2014 and a surplus of over a million tonnes, to declare half of the country a disaster zone. “We are setting aside about $20 million to import maize because if we don’t do that millions of our people will suffer ... this is being set aside in our 2015/16 budget,” Finance Minister Goodall Gondwe told Reuters.

LUSAKA Zambia goes after miner First Quantum over layoffs The Zambian unit of Canada’s First Quantum Minerals said more than 300 workers were being laid off at its Kansanshi mine, drawing a government call for redundancies to be cancelled on the grounds it had not been informed as required by law. Kansanshi said in a statement 343 workers were being laid off at the mine, mainly from contracting companies building a smelter which was completed in December 2014. The company said government ofﬁcials had been told of the job losses late last year and that affected workers were employed by companies outside its control. It said every effort would nonetheless be made to redeploy them.

HARARE Zimbabwe’s former V-P expelled from Mugabe party

Zimbabwean President Robert Mugabe’s ruling ZANU-PF has expelled former vice president Joice Mujuru, completing the purging from national politics of a woman who only a year ago was seen as frontrunner to succeed the 91-year-old leader. Mujuru lost her positions in the party and government in December and had become an ordinary ZANU-PF member. ZANU-PF spokesman Simon Khaya Moyo said the ruling party’s top decision-making organ politburo had agreed to dismiss Mujuru. The party cited at least 10 reasons which include plotting to remove Mugabe from ofﬁce, alleged corruption and bringing the party into disrepute, charges which she has previously denied.

Wednesday April 8, 2015 | BUSINESS DAILY

PAGES 16-17 : Investors in road

projects to be compensated for damages by overloaded trucks

WEDNESDAY, APRIL 8, 2015

PAGE 18 : Sh22bn Kisumu

port project signals better days for towns

FedEx bids fo≥ Dutch ≥ival in global expansion d≥ive US company, which has operations in Kenya, offers to buy TNT Express for $4.8 billion BY ALLAN ODHIAMBO

FedEx ofﬁce in downtown Nairobi. FedEx and TNT Express both have operations in Kenya. DIANA NGILA

US parcels delivery firm, FedEx Corp, plans to buy its Dutch rival TNT Express for an estimated $4.8 billion (Sh433.1 billion) as it aims to grow its footprint in the European market. Both FedEx and TNT Express have operations in Kenya and are among the preferred shippers for international parcels alongside DHL and the Postal Corporation of Kenya’s expedited mail services (EMS). FedEx said on Tuesday it will offer eight euros (Sh793.2) in cash per ordinary TNT Express share, in a deal that would give the US firm a head start where main rival United Parcel Services (UPS) failed two years ago after its bid for the Dutch firm was blocked on competition concerns. UPS pulled out of the deal in 2013 following opposition from EU competition authorities, saying it saw “no realistic prospect” of approval for its bid from the European Commission. Following the collapsed buyout by UPS, TNT started a restructuring programme, cutting

COMBINED FIRM WOULD BE STRONG GLOBAL COMPETITOR IN THE TRANSPORTATION costs, selling operations and investing heavily in its road network to retain customers amid weak market conditions for the parcel deliveries in Europe. FedEx and TNT Express expect the deal to be completed in the ﬁrst half of 2016. “The combined companies would be a strong global competitor in the transportation and logistics industry, drawing on the considerable and complementary strengths of both FedEx and TNT Express,” FedEx said in a statement. The two companies said the deal has been

Insecu≥ity ≥isks inc≥easing cost of logistics BY GEORGE OMONDI

A recent terror attack on Garissa University has refocused attention on Kenya’s status as a regional transport and logistics hub status even as State agencies play down the threat posed by Somali-based Al-Shabaab militants. Anxiety over frequent attacks has especially gripped East African shippers following recent downgrading of neighbouring Sudan, South Sudan and Djibouti to the list of red countries. The three states join Niger, Nigeria, Mali, Somalia and Somaliland in this list. Countries across the globe are classified according to their security risk profiles and are either regarded as red, white or green with the classification determining the level of security measures applicable Raising Kenya’s risk profile from white to red will increase cost of doing business in the region as transporters and insurers adjust charges on goods passing through the country. The classification could also result in strict security measures such as rigorous screening of packaged items and restric-

Profile Charges Raising Kenya’s risk profile from white to red will increase cost of doing business in the region as transporters and insurers adjust charges on goods passing through the country. Classification could also result in rigorous screening of packaged items and restriction on the value of goods.

tion on the value of goods allowed to pass across the country’s borders. But government oﬃcials have dismissed security worries over major transnational highways, saying Kenyan roads remain among the safest in sub-Saharan Africa. “This is a very sensitive matter but any suggestion that Kenya should be on the watch-list is ridiculous,” said an oﬃcial in the transport sector agency. “The security arrangement on the North Corridor, for instance, is among the best in East Africa.” Kenya provides transport and logistic connections to most landlocked states in

eastern Africa.. As a white country , it is still considered to have a certain level of risk, but not as high as a red one while green countries such as France have a minimal security risk level. As a country that trades more with the European Union and United States, Kenyan oﬃcials are keen to defend the safety records of transnational roads to ease logistical burden on traders who rely on them to get to markets. Mr Oliver Facey, Vice -President of Operations for DHL Express Sub-Saharan Africa says global security breaches such as terrorist threats and the trading of illegal substances, have resulted in the global transportation of goods being subjected to a number of security regulations, largely driven by the EU and US. “In order to trade with the EU and the US, red countries have to comply with set regulations and conditions”, he said in a statement. Mr Facey said while the rules should not hamper trade between certain red countries and the rest of the world, consumers and businesses need to be aware of them and understand that certain items cannot be moved as easily as others.

unanimously recommended by TNT Express’ supervisory board, adding that TNT’s largest shareholder, PostNL would tender its 14.7 percent stake in TNT to the FedEx offer. “We believe that this strategic acquisition will add significant value for FedEx share owners, team members and customers around the globe. This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends —especially the continuing growth of global e-commerce — and positions FedEx for greater long-term profitable growth,” Frederick W. Smith, chairman and CEO of FedEx Corp, said. TNT Express said the deal would provide customers with bigger and better options for shipping parcels. “This offer comes at a time of important transformations within TNT Express and we were fully geared to executing our stand-alone strategy..” Tex Gunning, CEO of TNT Express, said. aodhiambo@ke,natuionmedia.com

BUSINESS DAILY | Wednesday April 8, 2015

Wednesday April 8, 2015 | BUSINESS DAILY

DISTRIBUTION | TRAVEL | FINANCING

DISTRIBUTION | TRAVEL TRAVEL || FINANCING DISTRIBUTION|

TRANSPORT

MOMBASA PORT WEEKLY

Investo≥s in ≥oad p≥ojects to be compensated fo≥ damages by ove≥loaded t≥ucks INFRASTRUCTURE The Government plans to tarmac over

Road network

10,000kms of roads in five years under the annuity deal road deterioration specifically due to overloading and report to the contracting authority,” said the Investors building roads under the annuity pro- Roads ministry in a notice to investors eyeing the gramme will be compensated for damages caused contracts. by overweight trucks. Claims for compensation will be verified by an The government plans to tarmac 10,000 kilo- independent engineer, the ministry said, and a demetres of roads across the country over the next termination made on any compensation. The projects are being implemented by the five years under the annuity programme which is based on a finance-design-build-maintain and Kenya National Highways Authority (KeNHA), Kenya Urban Roads Authority (Kura) and Kenya transfer contract model. The Treasury will then repay the loans in equal Rural Roads Authority (KeRRA). instalments (annuity) over eight years, starting from They are intended to support the primary growth the time the road section is completed. sectors of commerce, tourism, agriculture and rural The government plans production, and extracto build 2,000 kilometres tive industries. THE TRANSPORT MINISTRY HAS of small roads mostly in The Transport and KICKED OFF THE RECRUITMENT OF rural areas, within the Infrastructure ministry INDEPENDENT ENGINEERS TO HELP current financial year on Thursday kicked off MANAGE THE PROJECT WHICH WILL BE ending in June, under the recruitment of inIMPLEMENTED IN THREE PHASES dependent engineers to the programme. help manage the project In the next fiscal year starting July this year, 3,000 kilometres made up which will be implemented in three phases and of 80 per cent small roads and 20 per cent high- divided in lots. ways will be built. There are further plans to tar“The consultancy services to be provided by mac 5,000 kilometres of roads in the 2016/2017 the independent engineer shall involve monitoring compliance with the terms of the project financial year. “The government will be responsible for axle agreement by the parties to the contract during load control along the project roads. However, the the concession period,” the ministry said in a call consortium shall be required to monitor axle loads for bids that closes on April 17. along the contracted roads and shall assess any The new road financing and construction

The government plans to build 2,000 kilometres of small roads mostly in rural areas within the current financial year ending in June. In the next fiscal year, 3,000kms made up of 80pc small roads and 20pc highways will be built. There are further plans to tarmac 5,000kms of roads in the 2016/2017 financial year. The projects are intended to support the primary growth sectors of commerce, tourism, agriculture and rural production as well as extractives.

BY ALLAN ODHIAMBO AND ANNIE NJANJA

Cargo containers stacked at the port of Mombasa. FILE

Mombasa po≥t handles 164,000 met≥ic tonnes ca≥go ove≥ Easte≥

ore than 164,000 metric tonnes of lose cargo were delivered out of the port of Mombasa in the week ahead of the ended Easter holidays. The port also facilitated delivery of 9,393 Twenty Foot equivalent units (TEUs) during the week characterised by busy moments as port users rushed to beat the long weekend deadline. However, for the port it was business as usual as operations were scheduled to move on 24/7 basis as is the norm. The port services are provided round the clock except on May 1 and December 25 of every year which are observed as Labour Day and Christmas respectively. Last week was one of those unusual weeks in the port since key stakeholders would not come together for their scheduled weekly meeting on Friday which marked the beginning of Easter holidays. However, KPA general manager operations, Capt. Twalib Khamis confirmed that the authority had issued a notice to the ships agents and other key stakeholders to the effect that normal port operations would continue despite the holidays. As usual, road transport handled the highest volumes clocking 135,885 metric tonnes and 9,123 TEUs. Cargo that exited the port by rail recorded only 270 TEUs while conveyor belt accounted for 28,909 metric tonnes. Among the notable imports was bulk clinker, key ingredient for manufacturing cement which accounted for 69,373 metric tonnes .This was yet another week that bulk clinker was dominating conventional cargo operations . Hundreds of trucks snaked into the port to load the commodity which is traditionally delivered directly from vessels upon arrival at the port of destination. Conventional cargo berths handled 25 vessels that also discharged 29,244 metric tonnes of bulk wheat and another 28,148 metric tonnes of unspecified general cargo. The section saw 4,017 units of motor vehicles rolling off car carriers to go into the regional markets. Also discharged at the section were 17,480 metric tonnes of bulk

fertilizer and another 5992 metric tonnes of project cargo.

28,148 The volume in metric tonnes imports discharged by vessels at the port of Mombasa the previous week

During the week under review, the port facilitated loading for export 6,441 metric tonnes of lose cargo and 11,482 TEUs (full and empty). The container operations section handled 11 vessels and reported total container yard population of 12,813 TEUS down from 13,100 TEUS the previous week. Local bound containerised import cargo registered 2,546 TEUs while transit bound recorded 5,356 TEUs. Uganda bound cargo recorded 3,698 TEUS, followed by South Sudan with 641 TEUS, Democratic Republic of Congo with 367 TEUs. Rwanda and Tanzania registered 250 TEUs and 294 TEUs respectively. The container operations section had a total of 3,917 TEUS ready for collection and another 1,312 TEUs awaiting pick-up orders. There were another 3,411, full exports nominated and un-nominated, 502 TEUs for Transhipment, 2,790 TEUs empties and 881 TEUs at the Customs Warehouse. The focus for the next fortnight indicates that 15 container carriers will be calling at the port to discharge 6224 TEUs and load another 9663 TEUs. The conventional cargo section is expected to handle a total of 320,726 metric tonnes with imports accounting for 287,036 metric tonnes and the remaining for exports. Meanwhile Capt. Twalib Khamis conﬁrmed that port operations went on normally with minimal interruptions during the Easter holiday period. He said both ship and yard operations went on as usual and deliveries through the exit gates were apt. -KPA

Police impound an overloaded truck along Waiyaki Way, Nairobi, on February 23, 2015. Road contractors under the annuity programme will be requited to monitor axle loads, assess any road deterioration and report the matter to the contracting authority. SALATON NJAU model will double the fuel levy to as much as Sh18 a litre. The Kenya Roads Board (KRB) recently wrote to the Treasury proposing a tax of Sh6 per litre of diesel and petrol as the road annuity levy and an

addition of Sh3 per litre to go towards the fuel levy beginning July — eﬀectively doubling of the fuel levy to Sh18 per litre of fuel. KRB, which collects and manages Kenya’s road maintenance levy fund, reckons that the current

East Af≥ica feels p≥essu≥e of ≥ising vehicle impo≥ts vehicles getting into the region and using the roads has put pressure on the existing infrauthorities in Nairobi, Kampala, and structure, necessitating the expansion of road Kigali are caught in a race to expand networks in major cities. key road infrastructure following an The need for more roads is independent of the developing EAC railway project and the exupsurge in vehicle traffic. The traffic woes around East African capital panding of Eastern and Northern Corridors. cities reflect the high number of vehicles cleared The expansion of roads will ensure the at the Port of Mombasa which has grown sharply number of vehicles getting into the region will over the years, piling pressure on governments not cram the existing roads, which were previin the region to expand existing infrastructure ously designed to accommodate fewer units. facilities. After the expanA total of 157,856 sion of Thika road motor vehicles were and building of A TOTAL OF 157,856 MOTOR VEHICLES WERE DISCHARGED IN discharged in 2014 Eastern, Southern 2014 COMPARED TO 136,915 UNITS compared to 136,915 and Northern byCLEARED THE PREVIOUS YEAR pass, the Kenyan units cleared the pregovernment has also vious year, an increase embarked on the exof 20,941, statistics by pansion of road networks within the city, Kenya the Kenya Ports Authority (KPA) showed. In 2012, 120,268 units were cleared at the National Highways Authority (Kenha) recently Mombasa port, which also serves landlocked announced. Plans are underway to expand the Karencountries like Uganda, Rwanda, Burundi and South Sudan. Tanzania does most of its impor- Bomas and Karen-Kikuyu roads to improve tations through the Dar es Saalam port. traffic flow in Nairobi, because the congestion Projections showed that the number of cars on the Ngong and Lang’ata roads spills into the getting into the East Africa region is expected Central Business District (CBD). There are also plans to construct a 12.3 kiloto grow progressively. The growing number of BY ANNIE NJANJA

metres dual road crossing the CBD, a move expected to ease Nairobi’s heavy traﬃc jam, which the governments says costs the city Sh50 million a day in lost productivity. Kenya Roads Urban Authority (Kura), which is charged with the mandate of managing, developing and maintaining all public roads in cities and towns in the country, has been instrumental in ensuring that the road network is expanded too. Several multi-billion shilling projects are underway and include the rehabilitation of road networks in Upperhill, Eastleigh, Voi and Eldoret. The Ugandan government has also been working on its road networks in a bid to decongest Entebbe City and to open up other parts of the country. Current statistics indicate that Entebbe Road carries the highest number of vehicles in Uganda every day, at 51,834, followed by Jinja Road, which serves 42,857 units. Uganda is working to expand the Northern Bypass into a dual carriage way, a move the Uganda National Roads Authority says move will help decongest the city by elimination of roundabouts. The bypass will connect motorists using Entebbe Express Highway to the city centre while

a road in Kalerwe will be used by those using Entebbe Express Highway into the city. The Northern Bypass will run through Bweyogerere, Kireka, Naalya, Kiwatule, Kigoowa, Bukoto, Mulago, Makerere, Bwaise, Kawaala, Namungoona and Busega. The Southern Bypass, whose construction is yet to start, will cover 17 kilometre and will connect the Kampala-Jinja highway and the Kamplala-Entebbe highways, further reducing traffic jams in the city. The country has also improved its road networks in rural areas. For instance, the 103 kilometre Portal-Lamia road was opened for use last month while construction of the 82 kilometre stretch between Malaba and Bugiri is nearing completion. Expansion of roads in Rwanda is primarily aimed at positioning the country as an investment destination, unlike Kenya and Uganda whose main mission is to clear the traffic mess that hits the two capital cities every day. Rwanda’s traffic congestion is yet to exceed international limits, but current trends indicate that more vehicles are getting into the roads forcing the government to rework existing infrastructure. The country has also embarked on road network expansion.

levy charged at Sh9 per litre — which was set in June 2006 — is no longer feasible given the rise in raw materials, labour and transport costs, which has in turn increased the cost of building and maintaining the road network. “We are likely to

have an improvement in the fuel levy in the next financial year. We want a doubling of the rate and have already discussed with the Treasury,” Jacob Ruwa, executive director of KRB told the Business Daily in February. He further said: “The annuity programme has a road maintenance bit and it is natural that it will eat from the road maintenance levy fund. The figures are still being worked on,” said Mr Ruwa in an interview. The proposal will help the government raise the Sh260 billion required to fund the annuity programme over the next 10 years. Road construction in Kenya has often lagged due to cash shortfalls, with only 14,100km or 8.7 per cent of the total network, tarmacked. About 49 firms, 45 per cent locals, have been shortlisted in the project that will create nearly 137,000 direct jobs. aodhiambo@ke.nationmedia.com and Anjanja@ ke.nationmedia.com

Wednesday April 8, 2015 | BUSINESS DAILY

DISTRIBUTION | TRAVEL TRAVEL || FINANCING DISTRIBUTION|

TRANSPORT

to be compensated fo≥ damages by ove≥loaded t≥ucks Road network The government plans to build 2,000 kilometres of small roads mostly in rural areas within the current financial year ending in June. In the next fiscal year, 3,000kms made up of 80pc small roads and 20pc highways will be built. There are further plans to tarmac 5,000kms of roads in the 2016/2017 financial year. The projects are intended to support the primary growth sectors of commerce, tourism, agriculture and rural production as well as extractives.

of ≥ising vehicle impo≥ts metres dual road crossing the CBD, a move expected to ease Nairobi’s heavy traﬃc jam, which the governments says costs the city Sh50 million a day in lost productivity. Kenya Roads Urban Authority (Kura), which is charged with the mandate of managing, developing and maintaining all public roads in cities and towns in the country, has been instrumental in ensuring that the road network is expanded too. Several multi-billion shilling projects are underway and include the rehabilitation of road networks in Upperhill, Eastleigh, Voi and Eldoret. The Ugandan government has also been working on its road networks in a bid to decongest Entebbe City and to open up other parts of the country. Current statistics indicate that Entebbe Road carries the highest number of vehicles in Uganda every day, at 51,834, followed by Jinja Road, which serves 42,857 units. Uganda is working to expand the Northern Bypass into a dual carriage way, a move the Uganda National Roads Authority says move will help decongest the city by elimination of roundabouts. The bypass will connect motorists using Entebbe Express Highway to the city centre while

BUSINESS DAILY | Wednesday April 8, 2015

Sh22bn Kisumu po≥t p≥oject spells bette≥ days fo≥ towns IMPACT Homa Bay, Mbita and Luanda K’otieno have

been in an economic lull, but consultants expect change BY ALLAN ODHIAMBO

FACTBOX

Three townships on the shores of Lake Victoria are expected to benefit from the planned construction of a modern Sh22.5 billion port in Kisumu as Kenya eyes bigger trade in the region. The piers in Homa Bay, Mbita and Luanda K’otieno are projected to register enhanced activity when a new port in Kisumu becomes operational. Before the collapse of the lake transport system, Homa Bay was a main shipping points for goods to neighbouring Tanzania. Vessels from Kisumu docked in Homa Bay and offloaded cargo which was then transported by truck to the Tanzanian border two hours away. Mbita and Lunda K’otieno currently host regular ferry services by private firms and the construction of a new port facility in Kisumu is expected to boost trade in merchandise. “We expect an effect on the operations of the various

Background An impenetrable water hyacinth has affected lake transport. Plans are underway to extend the standard gauge railway to Kisumu to quicken cargo transportation piers around the lake once the new port is operational. A lot of bulky agricultural produce and ﬁsh and ﬁsh products are easier ferried by water,” a consultant involved in the project told Shipping & Logistics. This came as a consortium led by Maritime & Transport Business Solutions (MTBS) of Netherlands said it will structure the public private partnership (PPP) contract for the planned modern Sh22.5 billion port in Kisumu. The consortium was awarded a contract by the Treasury last month to advice on the project. “MTBS shall provide all support in preparing and ex-

ecuting the transaction, including market forecasting, PPP structuring, contract and transaction process design and implementation support,” the Dutch ﬁrm said in an update. The project, to be implemented by the Kenya Ports Authority (KPA), will be on a BOT (Build-OperateTransfer) basis. Kisumu is deemed a critical hub for trade with neighbouring countries such as Tanzania and Uganda and by extension Rwanda and Burundi as well as those in the Great Lakes Region. For decades the port registered robust business activity helped by a reliable railway system and maritime vessels that ferried cargo to ports such as Mwanza and Bukoba in Tanzania and Jinja and Port Bell in Uganda. Lake Victoria’s economic activity has been eroded by a number of factors, including a derelict railway infrastructure. aodhiambo@ke.nationme dia.com

MARITIME BRIEFING Comesa clears bulk of NTBs

Mombasa port handled less cargo to Rwanda and Tanzania in 2014

Over 80 per cent of Non-Tarrif Barriers (NTB) have been resolved, according to a report presented at the Comesa Policy Organs meeting held last week in Addis Ababa. Results displayed on www.tradebarriers.org, an online system developed for reporting, monitoring and eliminating NTB’s, indicate that 385 out of 476 NTBs reported at the portal as at of March 25, have been resolved. The online portal captures, monitors and traces the success of eliminating NTBs in the larger Comesa region and the smaller East African Community (EAC) and South African Development Community (SADC), providing an orderly and transparent process of identifying and eliminating trade barriers in the regions. The report also highlighted several categories of NTB’s that it termed as “most restrictive to trade in the region.” The non-tariff barriers highlighted are; governments’ involvement in trade and their tolerance on restrictive practices, tedious customs and administrative entry procedures, technical barriers and food safety and health measures. However, charges on imports and issues related to transit clearance and other procedural restrictions were also blamed for slow trade within the regions. The report said that “Part of the reason why reported NTBs take long to resolve is the different understanding the parties involved have regarding them.”

Rwanda and Tanzania bound cargo handled by the port of Mombasa declined by 1.7 per cent and 2.4 per cent respectively in 2014, when compared to the records of the previous year. The latest results indicate that cargo destined to Rwanda were 235,912 tonnes down from 240,099 tonnes while Tanzania posted 187,848 tonnes from 192,475 tonnes in 2013. This is according to statistics released by Mr Gichiri Ndua, Kenya Ports Authority managing director, while addressing stakeholders in a meeting held in Kigali last month. The decline is a contrast of results posted by Uganda, Burundi and South Sudan over the same period. Cargo destined for Uganda marked the highest volume after posting a 610,000 tonnes increase from 4.9 million tonnes recorded in 2013, largely boosting trade at the port. Rwanda preferred using the Central to Northern corridor since it’s 200 kilometres shorter, translating to less logistical challenges and cost. The central corridor links Rwanda to Port Dar es Saalam through Rusumo border post. Despite a decline in Rwanda’s and Tanzania’s cargo volume, the port of Mombasa recorded a throughput of 24.875 million in 2014, an 11.5 per cent increase.

-ANNIE NJANJA

Wednesday April 8, 2015 | BUSINESS DAILY

MONEY & MARKETS NEWS I REVIEWS I ANALYSIS

Bank, insu≥ance stocks slow down in ﬁ≥st qua≥te≥

Limu≥u Tea dips into loss as p≥ices fall BY MUGAMBI MUTEGI

MARKET Waning attraction depressing prices as

other counters achieve optimum valuations per cent—translating to a Sh102 billion value gain to Sh665 billion— has acKey sectors at the Nairobi Securities counted for the bulk of total NSE marExchange (NSE) including banking and ket cap gain of Sh120 billion to Sh2.42 insurance comparably slowed down in trillion. the first quarter of the year, with ana“The basis of pricing of shares is lysts saying declining attraction is de- demand and supply. We have seen foreigners exiting the market this year and pressing share prices. During the quarter, insurance stocks therefore the demand that had been have gained 11 per cent compared to 34 high in the past and driven share prices per cent in the correspondis simply not there,” said ing quarter of 2014 and ABC Capital corporate finance manager Johnson 63.2 per cent for the whole The demand that Nderi. of 2014 when the segment In the first quarter, was the star performer at had been high in foreign investors drew the bourse. the past and d≥iven out of the market a net The banking segment sha≥e p≥ices is of Sh3.16 billion, which is up 2.2 per cent this year, compared to a full-year 2014 simply not the≥E was to a large extent due gain of 20 per cent and a to profit taking. four per cent gain in the In terms of capitaliJOHNSON NDERI, sation gain, the bankfirst quarter of last year. ABC CAPITAL CORPORATE FINANCE ing segment is up Sh19 The manufacturing MANAGER billion to Sh875 billion, segment is flat so far, with compared to a gain of a gain of only 0.1 per cent. The segment had opened 2014 on a Sh28 billion in quarter one 2014 and slower note by falling 7.2 per cent in Sh141 billion gain for the full year quarter one, but regained its momen- 2014. tum to end the year 12.4 per cent higher Insurance counters collectively compared to 2013. gained Sh56 billion in 2014, half of the Safaricom’s year-to-date gain of 18 gains recorded in the first quarter. The BY CHARLES MWANIKI

Investment brokers at the Nairobi Securities Exchange. FILE segment has registered a gain of Sh14 billion so far year. Agriculture, energy and construction sector stocks have however shown improvement in the ﬁrst quarter of 2015 compared to 2014, registering gains of 20.7 per cent, 4.2 per cent and 4.3 per cent respectively. Last year the agriculture stocks were collectively up by 15 per cent, energy down 2.9 per cent while construction was down 2.2 per cent. Some analysts have pointed out key counters in the banking segment which have enjoyed a good run have nearly achieved their optimum valuations at the bourse based on their underlying fundamentals. In an analysis released in November last year covering the three largest indigenous Kenyan banks (Equity, KCB and Co-operative), Citi’s global invest-

ment banking arm said the banks have little room for improvement because they have already shown good balance sheet utilisation. Analysts at Stratlink Africa say however that these financial sector stocks still provide the safest bet of a continuation of the market’s Bull Run owing to the good financial performance of the various companies at a time their peers across other segments are reporting depressed earnings. “We expect the market to regain its bullish trend driven, notably, by sentiment around companies listed in the financial services segment majority of which reported bullish results for the year ended December 2014,” Stratlink has said in its April 2015 market outlook. cmwaniki@ke.nationmedia.com

Limuru Tea has plunged into fullyear loss on falling tea prices that offset an increase in green leaf volumes. The company has reported a Sh331 million loss compared to a net profit of Sh28.5 million the previous year, with revenues for the year dipping 11 per cent to Sh92 million. The firm has valued its tea plantation at Sh196.7 million— down from Sh201.7 million—offsetting any benefit the 14 per cent increase in green leaf volumes to 3.4 million kilos made. “The decrease in pretax profit is largely attributed to the reduced tea auction prices and the loss on revaluation of biological assets in line with the declining tea prices,” the company said, adding that prices last year fell 16 per cent to Sh180 per kilogramme. Tea prices have for the past two years plummeted on increased volumes, significantly reducing small farmers’ bonus earnings to Sh15.8 billion last year, the lowest in the past five years. Prices of the commodity have however been increasing since the beginning of this year, raising hopes for farmers including Limuru Tea. Mid last month, tea prices at the Mombasa auction hit a one-year high as severe drought took a toll on the volumes.

Human ≥esou≥ce ≥epo≥t paints gloomy pictu≥e fo≥ NGO secto≥ jobs BY JOHN GACHIRI

Low levels of donor funding will result in layoffs in the civil society sector even as most employers expect little change, a human resource report says. The Talent Report 2015 by Corporate Staffing Services (CSS), a human resource consultancy, says reduced donor funding will force some nongovernmental organisations (NGOs) to undertake cost-cutting measures, including layoffs. Local NGOs have found it difficult to attract funding due to donors such as the European Union cutting back on aid following tough economic times. Proposed legislation such as capping the amount an NGO can receive from

foreign donors to 15 per cent is also worsening the industry outlook. “The majority of employers are looking to keep the number of staff at the same level, while an equal number expect an increase in the number of staff in the next quarter. Only a small portion of the employers anticipate staff layoffs, especially NGO sector due to lack of funding,” says the report. The firm carried out a survey between January and February this year and sought views from human resource managers who are members of the Institute of Human Resource Management (IHRM Kenya). Most of the managers surveyed came from the private sector (52 per cent), 32 per cent from the public sec-

Survey 80.2 per cent of managers surveyed expect staff levels to either increase or stay the same while 11.4 per cent expect job losses.

tor while the NGO sector contributed 16 per cent of the respondents. The report said 80.2 per cent of managers surveyed expect staﬀ levels to either increase or stay the same, 11.4 per cent expect job losses while 7.77 per cent are unsure of whether their work force will change. Human resource managers at the same time said talent retention and attraction is becoming a major issue

and that companies are now offering more than cash benefits to employees. “This means paying market rate and where possible having other incentive programmes and benefits such as medical, pension and training, as well as rewarding performance and improving on employee relations by involving staff in decision-making,” said IHRM Kenya executive director Samson Osero. In cases where companies get the right people, getting them to leave jobs is also difficult since employees are using offers to get better deals from their employers. Even with the large number of applicants, it still proves difficult to find top talent with positive attitude towards work with 45.3 per cent of the respondents saying the candidates who

apply for vacancies are of “poor quality” and that most of them do not fit in the positions. The managers said some 34.3 per cent of the applicants accept job offers then later withdraw as they use job offers as a bargaining tool with current employers to secure improved counter offers. CSS chief executive Perminus Wainaina said the fall in fuel prices was however expected to increase demand for goods and services which would in turn lead to higher production in some sectors and create additional jobs in certain sectors. “This will translate to more job opportunities in production and distribution sectors.”

BUSINESS DAILY | Wednesday April 8, 2015

MONEY & MARKETS

Safa≥icom sheds Sh28bn as fo≥eign investo≥s sell fo≥ p≥oﬁt BY CHARLES MWANIKI

Safaricom shed Sh28 billion in value yesterday closing the day 4.2 per cent lower at Sh15.90 as foreign investors sold the stock on proﬁt taking. Safaricom’s fall below the Sh16 level for the ﬁrst time in two weeks meant that the company’s valuation at close of NSE trading stood at Sh637 billion, compared to Thursday Sh665 billion when the share price stood at Sh16.60. Equity Bank also saw a decline in share price to close three per cent down at Sh49.50, which combined with Safaricom’s decline helped push the main NSE 20 Share Index lower by 17 points to close at 5179. “Foreign investors were largely selling Equity, Safaricom, Centum and KenolKobil and buying KCB and Barclays, with their participation at 55 per cent of the day’s turnover,” said a dealer at

an investment bank. The NSE All share index was down by 2.2 points to 171, as market turnover declined to Sh775 million from Thursday’s Sh979 million although the number of shares traded went up from 35 to 36 million. Although KCB was up 50 cents to Sh61, and EABL up Sh3 to Sh324 among the top counters, the declines in Equity and Safaricom had the effect of pushing market capitalisation at the bourse lower by Sh40 billion to Sh2.38 trillion. Safaricom and KCB were the top movers in the market, trading 25.3 million and 3.16 million shares respectively. Safaricom accounted for over half the total traded turnover at the market yesterday having moved shares worth Sh403 million. With KCB moving shares worth Sh193.3 million, both counters combined to account for 77 per cent of

An investor at NSE trading ﬂoor. Safaricom’s new market value is Sh637 billion . FILE the day’s trade turnover. The top gainers were drawn from the medium and small cap stocks, led by Total which was up 7.2 per cent at Sh26, and Home

Afrika which closed higher by 4.6 per cent at Sh3.40. The bonds market was upbeat with bonds worth Sh1.82 billion traded in

Pay fo≥ custome≥s of b≥oke≥ages that collapse to double

Shilling steady at 92.65, but expected to fall

LAWS The new rules are in proposals awaiting

the EAC council of finance ministers’ approval munity (EAC) and are waiting to be agreed upon by the council of finance Kenya will nearly double the comministers in the region. It means the pensation paid to investors who lose rules will be applied in each country money when a brokerage collapses within the EAC once adopted. so as to maintain confidence in the Already the rules have been discussed and adopted by the East Afristock market. The Investor Compensation Fund can Securities Regulatory Authorities (ICF) will pay up to Sh92,000 ($1,000), (EASRA) and are only awaiting the a substantial increase regional finance minfrom the Sh50,000 maxisters’ approval. imum previously paid EASRA expects the The statuto≥y to every person who new rules to be adoptloses cash in the event manage≥ shall pay ed and be applicable by June this year. of the insolvency of the all valid claims “Eligible investors broker. The amount paid will within six months of shall be compensated however rise in the event up to $1,000 (Sh92,000) its appointment the Kenya shilling deprein respect of aggregate NEW EAC PROPOSALS ciates against the dollar claim. The (administrator of the) ICF may adsince the payment is expressed in the green back rather than just the amount taking into account in local currency. the size of the investor compensation fund,” say the rules. More or less cash can be paid depending on the size of the compensaThey also specify that compensation fund. Kenya has been building tion will be paid within six months the compensation fund to buttress after the collapse of a broker rather its financial standing. than the long time it has been taking in Kenya such as in the cases of It has also taken a 5.1 per cent brokers who collapsed between 2007 shareholding in the Nairobi Securiand 2009. ties Exchange following demutualisation, with the dividend going to the An investor who has lost money is fund. The new rules are contained in also required to inform the statutory manager of a collapsed intermediproposals by the East African Com-

13 deals, compared to a turnover of Sh1.01 billion realised last Thursday in 11 deals. cmwaniki@ke.nationmedia.com

BY GEOFFREY IRUNGU

Investors outside the ofﬁces of collapsed Nyaga Stockbrokers in March 2008. Investors will be paid up to Sh92,000, a substantial increase from the Sh50,000 maximum previously paid, in new proposals. FILE ary of the ﬁnancial loss within three months of the announcement of the fall of a broker.

Suffered pecuniary loss “Where a statutory manager has been appointed, every investor who has suﬀered a pecuniary loss shall within three months of the announcement notify the statutory manager of such a loss. … The statutory manager shall pay all valid claims within six months of its appointment,” say the proposals. The rules state that the ICF will be administered by an independent body. Currently, the ICF is administered by the Capital Markets Authority (CMA)

in Kenya. The ICF will be allowed to receive cash from various sources including the contributions market intermediaries pay into it, interest and returns from cash it has received, ﬁnes or penalties imposed on those who contravene CMA laws and rules. The ICF administrator is required to have the fund audited every year by an independent ﬁrm and keep records that show in detail all the transactions it has been involved in. Kenya has seen several brokers collapse: they include Francis Thuo and Partners in 2007, Discount Securities in 2009 and Nyagah Stockbrokers in 2007. girungu@ke.nationmedia.com

The shilling held steady yesterday, but traders said it would weaken in coming days as the market saw the full extent of the damage to the country’s battered tourism industry from a militant attack on a university. Gunmen from the Al-Qaedaaligned Al-Shabaab group killed 148 people when they stormed the Garissa University College campus, about 200km from the Somali border, last Thursday. The shilling fell in reaction to the early reports of the attack on Thursday but markets were closed on Friday and Monday for Easter. At 10am yesterday, commercial banks quoted the shilling at 92.65/85 to the dollar, compared with Thursday’s close of 92.70/80. “We expect the shilling to weaken further because too many things are aﬀecting the market. Firstly it’s because of the Garissa attack, which is really going to turn down tourism,” Vimal Chudasama, treasury manager at Chase Bank, said. “Secondly, globally the dollar is being bought. Globally the US economy is doing well, so there is also demand from the oﬀshore banks as well.” Hoteliers said tourists had started cancelling trips after the attack, further hurting an industry that is a key source of foreign exchange. Chris Muiga, senior trader at National Bank, said he thought the news of the attack was already priced in. Traders forecast the shilling, which has lost 2.3 per cent so far this year, would trade in the 92.60 to 93.00 range in the next few days. -REUTERS

Wednesday April 8, 2015 | BUSINESS DAILY

MONEY & MARKETS GLOBAL

Global stocks ≥ise, boosted by M&As and Fed fo≥ecast

Bank to keep close eye on UK cu≥≥ent account deﬁcit

POSITIVE Japan’s Nikkei rose 1.2 per cent and

Chinese stocks climbed more than two per cent Global stocks rose yesterday, as many announced their desire to take over European bourses re-opening after TNT Express,” said Naeem Islam, the Easter break took on the positive chief market analyst at Avatrade. tone set by US markets overnight, “The Fed is still data-dependent with sentiment boosted by a potential and any weakness in the economic trans-Atlantic acquisition. data is equal to the presence of cheap money. We now have a question mark FedEx Corp made a 4.4 bilon a summer rate hike,” he said. lion-euro ($4.8 billion) bid to buy US stock futures were pointing to Dutch package-delivery company a slightly higher open on Wall Street. TNT Express, sending TNT shares MSCI’s broadest index of Asia-Pacific jumping almost a third in value and shares outside Japan gained 0.3 per lifting shares across the sector and cent, Japan’s Nikkei rose 1.2 per beyond. cent and Chinese stocks climbed The M&A feel-good factor for more than two per cent stocks dovetailed with to a seven-year high as the generally low governquarterly earnings season ment bond yields, as Me≥ge≥s and approached. expectations of the first US interest rate increase acquisition news In currencies, the bigsince June 2006 continis back today in gest mover was the Ausue to cool after last Frifull th≥ottle afte≥ tralian dollar, which ralday’s relatively weak lied more than one per FedEx announced cent after the country’s employment data. The pan-European desi≥e to take ove≥ central bank surprised FTSEurofirst index of some by leaving interest TNT Exp≥ess leading 300 shares was rates at a record low 2.25 up one per cent in early per cent. NAEEM ISLAM trade at 1602 points. The Aussie was up 1.1 Shares in TNT Express were up 31 per cent at $0.7676 4, pulling away per cent, easily the biggest gainers from the six-year low of $0.7534 in Europe. plumbed last week. Germany’s DAX, France’s CAC 40 But given the risks facing the Ausand Britain’s FTSE 100 were also up tralian economy, such as sliding pricone per cent. Spain’s IBEX reached its es for iron ore, the country’s biggest highest level since January 2010. . export, the central bank did leave the “Mergers and acquisition news is door open for future action, saying back today in full throttle after FedEx further easing might be appropriate.

Chinese yuan notes: Chinese stocks rose to seven -year high. AFP The euro was flat at $1.0922 EUR=, after earlier trading as high as $1.1036 overnight. The dollar was 0.2 percent stronger at 119.80 yen, up a full yen from Monday’s low. The dollar was struggling, however, to regain all its losses in the wake of last Friday’s US jobs report, which showed sub-par job creation in March and downward revisions to the pace of hiring in the previous two months. The 10-year Treasury yield recovered from two-month lows struck overnight, and was back at a level prior to the jobs data release at around 1.90 per cent. Comparable German yields were also little changed from the previous trading session at around 0.18 per cent. Greek and other peripheral euro zone yields were all as much as 5 basis points lower. Greek finance minister Yanis Varoufakis said on Sunday that Greece “intends to meet all obligations to all its creditors, ad infinitum,” seeking to quell fears of a default before

a big loan payment Athens owes the International Monetary Fund later this week. “Varoufakis pledged to meet this week’s upcoming 440 million-euro IMF payment on Thursday, easing earlier concerns that the government was to prioritize wages and pension payments over the repayment,” said Deutsche Bank strategist John Reid. In commodities, crude oil dipped, giving back some of the gains made overnight as the market reassessed how quickly Iran might increase exports after a preliminary nuclear deal. Goldman Sachs said prices needed to remain low for months to achieve a slowdown in US output growth. US crude CLc1 was down 1.4 percent at $51.40 a barrel after rallying 6 per cent on Monday. Brent also shed 1.4 per cent to $57.31 a barrel LCOc1 following its 5.7 per cent jump. Gold retreated as the dollar rebounded. It was last down to $1,211.40 an ounce after hitting a seven-week peak of $1,1224.10 on Monday. -REUTERS

Oil p≥ices fall as I≥an, China discuss supplies Brent crude prices fell almost $1 a barrel yesterday, with an Iranian delegation in Beijing this week to push for more oil sales. Oil markets were also pressured as Goldman Sachs said prices needed to remain low for months to achieve a slowdown in US output growth. China is Iran’s largest trade partner and also its largest oil client, having bought roughly half of Iran’s total crude exports since 2012, when sanctions against Iran were tightened. Brent May crude LCOc1 had dropped almost $1 to $57.26 a barrel by 0700 GMT. US May crude CLc1 was down 50 cents at $51.64 a barrel. Goldman said in a research note it expected US crude inventories to top out in April and subsequently draw

down at 350,000 barrels per day during May-September, when demand for fuel to power cars and air conditioners is at its greatest. Still, the bank said it saw little upside for its $40 a barrel forecast over the next three months as inventories would likely rise again by October, pressuring prices into 2016. “Prices need to remain low in coming months to achieve a suﬃcient and sustainable slowdown in US production growth,” the bank said, adding that the US production outlook for 2016 makes its forecast for $65-a-barrel oil next year look too high. On Monday, energy information group Genscape said its data showed Cushing stocks rose by only 169,000 barrels in the week to April 3.

In numbers Brent crude prices fell almost a dollar a barrel China is Iran’s largest trade partner

The American Petroleum Institute was to release its weekly oil inventories data yesterday while the Energy Information Adminis-

tration will publish its data today at 1030 EDT. US commercial stocks were seen extending their record build for the 13th consecutive week, while gasoline inventories likely continued to drop, a Reuters survey showed. Yet West Texas Intermediate may get another boost as reﬁneries return from maintenance and take more crude to prepare for peak summer fuel demand, said Ric Spooner, chief analyst at CMC Markets in Sydney. “A lot of people are waiting to see some improvement in the supplydemand balance and we’re getting closer to the time when it might happen,” Spooner said. -REUTERS

Britain’s large current account deficit could damage market sentiment towards the country if the economic environment deteriorates, the Bank of England said yesterday. Minutes from the BoE’s Financial Policy Committee meeting on March 24 showed members were worried about Britain’s current account deficit, noting it was high by historical standards. “(The) current account deficit was large and could, in adverse circumstances, trigger the deterioration in market sentiment towards the United Kingdom,” the minutes said. The deficit narrowed as a percentage of the economy in the fourth quarter after matching its record high in the previous three months. But for 2014 as a whole, the shortfall widened to 5.5 per cent of GDP, the largest deficit since records began in 1948. “The committee agreed to keep their assessment of this risk under close review and would monitor the maturity and liquidity of the financing of the deficit.” FPC members said “fragile” market liquidity was also a concern, although there was a range of views on its causes, hinting at the arguments currently being aired in the wider financial sector. Banks have blamed a welter of new capital rules for making market-making less profitable. Regulators have so far been cautious about endorsing such arguments in public. The FPC cited a decline in marketmaking activities at some financial firms. “It was also noted that these developments had reflected, in part, changes in the regulatory framework designed to make institutions more resilient although pre-crisis levels of liquidity had not been available in times of stress,” the FPC said. Regulators will report to the FPC, initially in June, on why liquidity has become fragile so that the committee can consider responses. The committee said Britain’s banks had low exposures to Greece, which is in the midst of negotiating with its euro zone partners to resolve a funding squeeze. “Nevertheless, the committee judged that, were Greece and its euro area partners to be unable to reach an agreement, more significant effects could arise.” Given the risks regarding Greece and the euro zone, BoE staff had been working closely with the finance ministry and the Financial Conduct Authority to ensure that contingency plans were in place, the FPC said. -REUTERS

BUSINESS DAILY | Wednesday April 8, 2015

MARKET DATA Agro Commodities Market Early Morning wholesale commodity prices 07.04.2015 COMMODITY Unit Kg Code CEREAL Dry Maize Bag 90 20 Green Maize Ext Bag 115 19 Finger Millet Bag 90 41 Sorghum Bag 90 42 Wheat Bag 90 48 LEGUMES Beans Canadian Bag 90 4 Beans Rosecoco Bag 90 5 Beans Mwitemania Bag 90 7 Mwezi Moja Bag 90 6 Dolichos (Njahi) Bag 90 35 Green Gram Bag 90 46 Cowpeas Bag 90 45 Fresh Peas Bag 51 27 Groundnuts Bag 110 44 ROOTS & TUBERS Red Irish Potatoes Bag 110 29 White Irish Potatoes Bag 110 30 Cassava Fresh Bag 99 43 Sweet Potatoes Bag 98 31 VEGETABLES Cabbages Ext Bag 126 9 Cooking Bananas Med Bunch 22 2 Carrots Ext Bag 138 13 Tomatoes Lg Box 64 32 Onions Dry net 13 22 Spring Onions Bag 142 23 Chillies Bag 38 11 Cucumber Bag 50 14 Capsicums Bag 50 12 Brinjals Bag 44 8 Kales Bag 50 15 CauliямВower crate 39 10 Lettuce Bag 51 17 FRUITS Passion Fruits Bag 57 25 Oranges Bag 93 24 Lemons Bag 95 16 Mangoes Local Bag 126 21 Ripe Bananas Med Bunch 14 3 Mangoes Ngowe Sm Basket 25 36 Limes net 13 18 Pineapples Dozen 13 28 Pawpaw Lg Box 54 26 Avocado Bag 90 1 OTHERS Eggs Tray 47

Commodities Nairobi

Mombasa

Kisumu

Nakuru

Loitoktok

2500 3600 7200 4000

2800 5600 7900 2700

3400 3000 7200 3600

2100 2000 6500 3150

2000 2500

8000 7600

6400 6400 4900 4500 6000 10800 7200 4500 12500

6300 6500 6300 6300 6800 11500 7400 3800 13000

6800 6500 7650 9900 6300 5500 14080

13000 8200 2500 10000

2300 2400 2000 3600

3500 4000 1500 3000

3200 3200 2100 2500

3000

2800 540 4200 5500 900 2200 3400 2300 3000 2000 3000 2800 2400

4700 700 6500 6400 1000 3800 4900 2000 2000 1760 250 3900 3000

2500 300 5000 4500 1040 1500 1400

350 2500 3000 850 1500 3500

2600 1400 3300

3500 3000 800 3000

4800 3500 2600 2700 640 1100 900 720 2000 2600

5500 3200 4000

3000 3000 1700 2800 300 1800

5000 2600 2700 2800 750

630 1300 1600

480 2500 2500

300

475 1250 600 900 1100 3300 360

300

2500

280

France

4000 4000

3000 500 5000 2500 1250

AFP 1800

Global Commodity Prices 3000 450

PCT.CHNG -10.13% -1.63% 0.73% 9.65% -0.19% -1.99% 1.40% -1.92% -8.89% -1.07% -1.28% 2.37% -4.40% 2.23% 0.65% 0.83% -0.83% 0.70% 1.18% 1.06% 11.07% 2.17% -3.08% -1.05% 2.36% -9.77% -4.62% -0.86% -4.19% 1.32% 0.82% -4.56% 0.15% -5.88% -4.04% 2.22% -13.06% 1.48% -5.80% -7.40% 0.72% -1.52% -1.11% 9.99% -2.53%

OPEN 413.01 1,059.25 139.08 2,208.10 558.85 270.72 512.39 437.86 93.23 1,897.57 4,202.13 71.39 2,282.99 301.98 336.14 497.53 1,881.98 537.52 122.59 166.93 925.67 6,675.20 1,059.68 1,222.06 563.20 515.67 668.84 298.90 255.21 643.45 758.92 4,653.89 638.93 732.52 2,107.68 1,356.97 121.62 1,724.33 972.79 766.25 1,324.28 524.99 353.20 344.70 556.29

HIGH 413.01 1,059.25 139.08 2,208.10 558.85 270.72 512.39 437.86 93.23 1,897.57 4,202.13 71.39 2,282.99 301.98 336.14 497.53 1,881.98 537.52 122.59 166.93 925.67 6,675.20 1,059.68 1,222.06 563.20 515.67 668.84 298.90 255.21 643.45 758.92 4,653.89 638.93 732.52 2,107.68 1,356.97 121.62 1,724.33 972.79 766.25 1,324.28 524.99 353.20 344.70 556.29

LOW 413.01 1,059.25 139.08 2,208.10 558.85 270.72 512.39 437.86 93.23 1,897.57 4,202.13 71.39 2,282.99 301.98 336.14 497.53 1,881.98 537.52 122.59 166.93 925.67 6,675.20 1,059.68 1,222.06 563.20 515.67 668.84 298.90 255.21 643.45 758.92 4,653.89 638.93 732.52 2,107.68 1,356.97 121.62 1,724.33 972.79 766.25 1,324.28 524.99 353.20 344.70 556.29

Effective date: 6th April 2015

MONEY MARKET FUND

AGRO COMMODITIES CURRENCY LAST NET CHNG

COMMODITY 330

CLOSE 459.55 1,076.76 138.07 2,013.71 559.92 276.20 505.31 446.43 102.33 1,918.03 4,256.70 69.74 2,388.05 295.41 333.97 493.43 1,897.71 533.79 121.16 165.18 833.43 6,533.16 1,093.36 1,235.04 550.23 571.51 701.25 301.50 266.38 635.03 752.73 4,876.14 637.95 778.27 2,196.42 1,327.55 139.90 1,699.20 1,032.66 827.47 1,314.83 533.10 357.17 313.40 570.73

Unit Trusts Effective date: 2nd April 2015

SOFTS

MSCI Emerging Markets Sector Indices LAST NET.CHNG 413.01 -46.536 1,059.25 -17.507 139.08 1.006 2,208.10 194.393 558.85 -1.076 270.72 -5.484 512.39 7.086 437.86 -8.575 93.23 -9.1 1,897.57 -20.458 4,202.13 -54.573 71.39 1.656 2,282.99 -105.057 301.98 6.576 336.14 2.179 497.53 4.101 1,881.98 -15.73 537.52 3.73 122.59 1.425 166.93 1.748 925.67 92.241 6,675.20 142.044 1,059.68 -33.673 1,222.06 -12.977 563.20 12.97 515.67 -55.837 668.84 -32.409 298.90 -2.597 255.21 -11.164 643.45 8.413 758.92 6.196 4,653.89 -222.25 638.93 0.98 732.52 -45.752 2,107.68 -88.744 1,356.97 29.415 121.62 -18.277 1,724.33 25.131 972.79 -59.871 766.25 -61.219 1,324.28 9.456 524.99 -8.11 353.20 -3.966 344.70 31.302 556.29 -14.434

World Health Organisation (WHO) chief Margaret Chan visits the Rungis international market in Rungis, outside Paris to mark the World Health Day. Each year WHO selects a priority area of global public health concern as the theme to mark it founding anniversary in 1948.

6200

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

NAME CI-UAE CI-AC AMER. CI-ASIA PAC CI-ARGENTINA CI-BRIC BRIC BRIC GROWTH BRIC VALUE CI-BAHRAIN CI-BRAZIL FREE CI-CHILE CI-CHINA FREE CI-COLOMBIA CI-CZECH REPUBLI CI-EAFE+EM CI-EU CI-EGYPT CI-AC EUROPE CI-C.FE CI-GOLD DRAGON CI-HUNGARY CI-INDON. FREE CI-INDIA CI-JOEG & MA CI-KOREA CI-KUWAIT CI-SRI LANKA CI-MOROCCO CI-EM E.EUROPE CI-EM FAR EAST CI-EM ASIA CI-EM EUROPE CI-MALAYSIA FREE CI-OMAN CI-PERU CI-PHILIPP.FREE CI-PAKISTAN CI-POLAND CI-QATAR CI-RUSSIA SOUTH EAST ASIA CI-THAILAND FREE CI-TAIWAN CI-ISRAEL CI-SOUTHAFRICA

WHO health inspection

CURRENCY

DAILY YIELD EFFECTIVE ANNUAL RATE

OLD MUTUAL

7.41%

7.67%

BRITISH AMERICAN

10.87%

11.48%

CBA

9.00%

9.35% 11.36%

SUGAR NO5

USD

364.10

-3.20

UAP

10.76%

COFFEE

USD

173.00

-3.00

ICEA

10.86%

11.47%

AMANA

10.72%

11.26% 12.09%

COCOA

USD

2801.00

1.00

RUBBER

JPY

207.00

-1.00

FROZEN OJ CON1 USC

118.20

-6.60

COTTON NO2

65.46

0.12

USC

GENCAP HELA

11.58%

PAN AFRICA PESA+

10.46%

11.03%

STANLIB

9.93%

10.40%

FIXED INCOME FUND

GRAINS

GENCAP HAZINA

CURRENCY

BUY

SELL

114.45

110.45

USD

100.97

CORN

USC

384.25

-0.75

NABO AFRICA

MAIZE EUR

EUR

155.75

1.25

BALANCED FUND

WHEAT

USC

523.25

-4.50

OLD MUTUAL / TOBOA

164.45

175.12

-0.04

BRITISH AMERICAN

196.48

202.23 144.94

ROUGH RICE

USD

10.79

OILSEEDS

BA MANAGED RETIREMENT

143.72

AMANA

126.70

ICEA

145.09

156.63

134.19

129.50

SOY BEANS

USC

975.50

-3.00

SOY BEAN OIL

USC

31.14

-0.12

GENCAP ENEZA

CANOLA

CAD

457.10

-1.20

UAP

11.09

11.64

PALM OIL

MYR

2264.00

-8.00

PAN AFRICA CHAMA+

10.73

11.06

STANLIB NABO AFRICA

METALS & MINING

132.21

102.90

444.92

EQUITY FUND

SYMBOL CURRENCY 100 OZ GOLD

SH USD

LAST

NET CHG

USD

1211.20

-7.40

OLD MUTUAL

415.25

OLD MUTUAL EAST AFRICA FUND

161.90

171.34

AMANA

127.04

127.04 222.72

SILVER

JPY

65.00

1.00

BRITISH AMERICAN

215.86

HG COPPER

USC

2.73

-0.02

CBA

170.88

PLATINUM

JPY

4510.00

10.00

ICEA

154.04

166.38

ALUMINIUM

CNY

13400.00

15.00

GENCAP HISA

141.29

136.35

UAP

11.02

11.57

STANLIB

193.23

USD

113.03

NABO AFRICA

OIL& GAS

BOND FUND NET CHG

OLD MUTUAL BOND FUND

100.09

102.47

51.64

-0.50

BRITISH AMERICAN

143.72

144.94

1.76

-0.01

ICEA

98.05

96.32

UAP

10.79

STANLIB FUND B1

100.44

SYMBOL

CURRENCY

LIGHT CRUDE

USD

NO 2 HT OIL

USD

LAST

BRENT CRUDE

USD

57.79

-0.33

GAS OIL

USD

539.50

0.75

STANLIB FUND A

99.76

NATURAL GAS

USD

2.68

0.03

PAN AFRICA PATA+

10.29

10.59

KEROSINE

JPY

54600.00

0.00

SHARIAH COMPLIANT SH

119.77

113.78

GENCAP IMAN

Wednesday April 8, 2015 | BUSINESS DAILY

MARKETDATA DATA MARKET

Aust≥alia ≥ates held at 2.2pc to b≥eathe life into economy Australia’s central bank Tuesday left interest rates on hold at 2.25 per cent for the second successive month, but kept the door open for further cuts as the economy continues to struggle. The Reserve Bank of Australia (RBA) said after its monthly board meeting that it was “appropriate to hold interest rates steady for the time being”. In February the bank slashed its official cash rate by 25 basis points to a record-low of 2.25 per cent — its first reduction in 18 months. “Further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target,” the RBA said in a statement. The Australian dollar strengthened by almost 1 US cent to trade at 77.11 US cents. The “Aussie” has taken a hit in recent months as commodity prices plunge while investors have been betting on the US Federal Reserve to hike interest rates, which boosts the US dollar. The Australian economy has struggled as it exits an unprecedented mining investment boom that helped it avoid recession for more than two decades.

Morning gains With inflation low, the economy expanding at a below-trend pace and the unemployment rate at multi-year highs, the central bank cut the cash rate in February to spur growth. The bank’s decision to hold off another cut surprised markets and the benchmark S&P/ASX200 index pared most of its morning gains and failed to end above the psychological 6,000point mark. But a majority of economists had forecast the central bank to remain on the sidelines to see whether the last easing was a sufficient boost to the economy. Most expected a cut in May instead. “They’ve still maintained their easing bias,” JP Morgan senior economist Ben Jarman told AFP. “For a board that took a long time to get over the line to cut again in February, they obviously want to give the last rate cut some time to breathe life into the economy. “They are sitting back and looking for signs of that occurring.” While economists fear the low rates could overheat the housing market, the RBA said it was cautiously optimistic about it, noting that although prices were still rising sharply in Sydney, trends were varied across other cities. The RBA added that the Australian dollar — which it has long said needed to decline more to boost growth in non-mining sectors — was likely to depreciate further as commodity prices weaken. -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

46.75 1.63%

Jul ‘14

Mar‘15 2.70 17.31 0.86%

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% 0.00%

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

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

CLonghorn &G Kenya

-0.28 -4014.29 0.09%

30.25 8.55 -3.20% -1.16%

Jul ‘14

USE All Share

July ‘14

Mar‘15

July ‘14

Mar‘15

Kenya Kenya

Jul ‘14

Mar‘15

43.50 -0.57%

11.75 799.00 0.00% -0.12%

Jul ‘14

July ‘14

Mar‘15 3.65 11.92 1.72%

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

Mumias KPLC Kenya

Mar‘15

14.452.20 0.35% -4.35%

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 18.78 PricePrice 0.00% YieldYield Dividend 5.32% Dividend

2.23 -1.77 6.48 -1.24 0.00% 0.00%

RSE All Share Rwanda

137.25 -0.03%

35,065.30 -1.86%

2,668.04 1.84%

July ‘14

48.00 11.88 1.49%

Nigeria

Tanzania

2,063.00 -0.39%

52,633.14 0.77%

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) 5.284.04 Price to earnings ratio (p/e) Yield 2.64% Dividend Dividend Yield 23.39%

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 0.00%

1124.00 0.00%

Mar‘15

July ‘14

Mar‘15

World DJ Industrial

Xetra Dax 12,086.23 0.99%

17,880.85 0.66%

July ‘14

Mar‘15

July ‘14

Nikkei

HangSeng

Frankfurt

New York

Mar‘15

Mumbai 19,640.54 1.25%

25,275.64 0.77%

July ‘14

Sensex

Tokyo

Hongkong

July ‘14

Mar‘15

28,516.59 0.04%

July ‘14

Mar‘15

BUSINESS DAILY | Wednesday April 8, 2015

MARKET DATA African Indices

Nairobi Stocks

NAME

NSE 20 Share Index

5,179.76 -0.33%

Nairobi

LOCATION

LAST

KENYA

5,179.76

-17.10

-0.33%

NSE 20 - SHR IDX LUSE ALL SHARE INDEX

NET.CHNG

PCT.CHNG

OPEN

HIGH

5,196.86

LOW

5,196.86

ZAMBIA

6,119.53

15.82

0.26%

6,103.71

6,119.53

6,103.71

SOUTH AFRICA

52,633.14

403.82

0.77%

52,667.65

52,727.11

52,571.34

52,229.32

UGANDA

2,063.00

ZIMBABWE

156.79

5,600.00

JSE ALL SHARE INDEX

5,500.00

ALSIUG

5,400.00

ZSE INDUSTRIAL

5,300.00

CFG INDEX

MOROCCO

5,200.00

MALAWI ALL SHR

MALAWI

5,100.00

DSE ALL SHR IDX

TANZANIA

2,668.04

48.21

1.84%

2,619.83

5,000.00

NSE ALL SHARE/D

NIGERIA

35,065.30

-662.82

-1.86%

35,728.12

35,729.20

34,846.46

35,728.12

4,900.00

EGX 30 IDX/D

4,800.00

TUN MAIN INDEX July ‘14

March ‘15

171.15 -1.29%

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 Price

Prev fri Price

15.90

16.60

KCB

61.00 9.05

KenolKobil Mumias Equity

Total Shares

Change

Safaricom

Traded

-4.22%

25,345,600

60.50

0.83%

3,168,200

9.00

0.56%

1,857,000

2.20

2.30

-4.35%

1,175,200

49.50

51.00

-2.94%

1,145,800

Gainers Last fri Counter

Total Home Africa

Price

Prev fri Price

Net

Change

Chng

26.00

24.25

1.75

7.22%

3.40

3.25

0.15

4.62%

NIC Bank

57.50

55.50

2.00

3.60%

Pan Africa

128.00

125.00

3.00

2.40%

9.45

9.25

0.20

2.16%

FTG

Losers Counter

Standard Grp

Last ri Price

Prev fri Net price Change

% Chng

33.25

35.75

-2.50

-6.99%

Mumias

2.20

2.30

-0.10

-4.35%

Safaricom

15.90

16.60

-0.70

-4.22%

9.50

9.80

-0.30

-3.06%

49.50

51.00

-1.50

-2.94%

CIC Insurance Equity

-0.39%

2,071.00

0.58%

155.89

21,277.56

-66.15

-0.31%

21,346.86

21,366.79

21,277.56

21,343.71

15,485.15

74.26

0.48%

15,410.89

EGYPT

8,716.37

208.13

2.45%

8,515.50

8,718.97

8,515.50

8,508.24

TUNISIA

5,384.93

41.61

0.78%

5,357.16

5,385.59

5,357.16

5,343.32

RWANDA

137.25

-0.04

-0.03%

137.25

137.29

Share Report

All Share Index (NASI)

Counter

RSE ALLSHARE IND

-8.00 0.90

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 7.50 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 %

VWA LAST PRICE

VWA PREV PRICE

DAILY PRICE CHANGE

TOTAL TRADED SHARES

SHARES ISSUED

EPS LATEST 12MNTH

P/E TRAILING

PBV TRAILING

DPS LATEST 12MNTH

TOTAL DIVIDEND YIELD

-19.64% 55.56% -5.11% 45.78% 0.00% 11.67% 12.90%

33.75 280.00 130.00 1124.00 27.50 14.15 280.00

33.75 280.00 130.00 1124.00 27.50 14.35 280.00

0.00% 0.00% 0.00% 0.00% 0.00% -1.39% 0.00%

200 20,000

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

1,085,298,750.0 5,487,999,720.0 508,560,000.0 1,348,800,000.0 1,650,000,000.0 3,226,985,325.0 2,451,769,600.0

-1.30 8.17 32.21 -0.28 5.85 0.54 81.36

-25.96 34.27 4.04 -4014.29 4.70 26.20 3.44

2.70 1.89 0.37 5.47 0.74 0.51 0.39

0.00 3.75 5.00 1.00 0.00 0.25 7.00

0.00% 1.34% 3.85% 0.09% 0.00% 1.77% 2.50%

-8.33% 22.45% -5.83%

49.50 12.00 5.75

49.50 12.00 5.65

0.00% 0.00% 1.77%

4,400 6,100

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

1,985,113,746.0 172,717,272.0 1,600,468,759.8

6.57 -11.90 -0.24

7.53 -1.01 -23.96

0.95 0.44 0.69

0.60 0.00 0.00

1.21% 0.00% 0.00%

-0.90% 1.61% 1.70% 2.00% -18.03% 3.25% 6.14% -3.03% -3.48% 0.90% 5.00%

16.45 126.00 234.00 49.50 37.25 127.00 61.00 23.50 57.50 336.00 21.00

16.55 126.00 239.00 51.00 37.50 127.00 60.50 24.00 55.50 338.00 21.00

-0.60% 0.00% -2.09% -2.94% -0.67% 0.00% 0.83% -2.08% 3.60% -0.59% 0.00%

636,400 9,000 3,300 1,145,800 92,100 5,200 3,168,200 13,500 15,800 1,700 324,700

5,431,536,000 395,321,638 242,110,105 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

89,348,767,200.0 49,810,526,388.0 56,653,764,570.0 183,287,462,490.0 8,781,687,500.0 49,829,978,953.0 182,037,889,212.0 6,580,000,000.0 36,796,872,172.5 103,877,596,704.0 102,675,642,195.0

1.54 14.38 21.92 4.55 4.21 13.56 5.63 3.11 7.07 33.21 1.64

10.68 8.76 10.68 10.88 8.85 9.37 10.83 7.56 8.13 10.12 12.80

2.76 2.16 2.46 3.56 1.44 2.27 2.85 0.53 1.77 2.87 2.39

1.00 6.15 2.40 1.80 1.50 2.90 2.00 0.00 1.00 17.00 0.50

6.08% 4.88% 1.03% 3.64% 4.03% 2.28% 3.28% 0.00% 1.74% 5.06% 2.38%

-9.68% 0.00% -8.62% -6.49% -10.65% 1.66% 2.88% -8.78% 4.48%

5.60 20.25 7.75 8.55 240.00 46.75 33.25 34.00 10.50

5.60 20.25 7.95 8.65 235.00 46.00 35.75 33.75 10.50

0.00% 0.00% -2.52% -1.16% 2.13% 1.63% -6.99% 0.74% 0.00%

7,500 78,100 46,000 7,300 12,900 1,700 6,100 31,400

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

198,261,224.0 7,290,000.0 11,597,635,021.3 2,084,062,500.0 45,250,148,640.0 17,711,943,518.5 2,717,582,616.0 6,193,919,672.0 3,832,075,968.0

0.01 -18.34 -2.25 1.62 13.10 2.70 2.57 3.45 1.45

560.00 -1.10 -3.44 5.28 18.32 17.31 12.94 9.86 7.24

1.00 3.71 1.15 5.53 2.16 1.50 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% 23.39% 4.17% 0.86% 1.50% 3.97% 2.86%

-6.98% 14.39% 7.21% -1.54% 1.72%

78.50 159.00 119.00 15.50 59.00

80.00 159.00 119.00 15.95 59.00

-1.88% 0.00% 0.00% -2.82% 0.00%

2,200 2,300 80,600 1,400

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

38,879,087,500.0 57,710,524,725.0 2,823,513,000.0 3,923,437,500.0 5,310,000,000.0

3.01 9.80 9.01 1.37 -4.30

26.08 16.22 13.21 11.31 -13.72

4.79 1.99 2.07 1.63 1.10

0.60 12.00 1.75 1.00 0.00

0.76% 7.55% 1.47% 6.45% 0.00%

5.34% 3.45% 20.76% 1.04% -9.52%

10.90 9.05 17.40 26.00 19.00

10.85 9.00 17.45 24.25 19.00

0.46% 0.56% -0.29% 7.22% 0.00%

111,700 1,857,000 36,400 4,800 1,400

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

23,962,139,870.4 13,319,438,860.0 33,955,526,583.0 4,550,746,356.0 30,853,682,095.0

1.29 0.74 3.31 2.26 1.34

8.45 12.23 5.26 11.50 14.14

0.35 2.00 0.78 0.89 3.37

0.40 0.20 0.50 0.70 0.90

3.67% 2.21% 2.87% 2.69% 4.75%

-12.61% 2.08% 26.67% 10.26% 8.60% 4.17%

26.00 9.50 570.00 18.60 25.00 128.00

26.00 9.80 570.00 18.80 25.25 125.00

0.00% -3.06% 0.00% -1.06% -0.99% 2.40%

921,800 213,600 200 14,400 3,900 200

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

50,398,811,788.0 24,847,616,016.0 34,140,150,000.0 13,019,052,664.8 13,392,687,475.0 12,288,000,000.0

1.47 0.43 48.00 4.48 2.15 9.07

17.69 22.09 11.88 4.15 11.63 14.11

2.91 3.07 3.19 0.73 2.53 3.68

0.30 0.10 8.50 0.70 1.00 0.00

1.15% 1.05% 1.49% 3.76% 4.00% 0.00%

-2.46% 11.54% -4.13%

60.50 5.65 18.10

59.50 5.80 18.55

1.68% -2.59% -2.43%

370,000 2,900 4,700

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

40,259,227,387.5 226,000,000.0 5,073,149,015.6

4.54 0.38 1.06

13.33 14.87 17.08

1.99 0.29 0.95

0.00 0.00 0.40

0.00% 0.00% 2.21%

19.65

19.90

-1.26%

115,400

194,625,000

3,824,381,250.0

2.13

9.23

5.24

0.38

1.93%

0.00% 6.40% -11.89% -3.45% 4.22% 5.41% 1.82% 17.95% 10.06%

11.10 133.00 799.00 20.75 324.00 3.90 112.00 2.20 43.50

11.10 133.00 800.00 21.00 321.00 3.90 112.00 2.30 43.75

0.00% 0.00% -0.12% -1.19% 0.93% 0.00% 0.00% -4.35% -0.57%

5,800 31,800 16,200 5,700 1,175,200 2,500

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

42,624,732.6 2,596,884,318.0 79,900,000,000.0 5,288,178,751.0 256,210,891,344.0 819,000,000.0 1,441,229,888.0 3,366,000,000.0 3,293,335,975.5

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

-5.50 11.31 18.78 10.75 39.46 -4.59 746.67 -1.24 11.92

1.78 10.55 3.20 9.38 2.53 589.47 0.32 0.70

0.00 5.20 42.50 0.30 5.50 0.00 0.00 0.00 0.75

0.00% 3.91% 5.32% 1.45% 1.70% 0.00% 0.00% 0.00% 1.72%

18.15%

15.90

16.60

-4.22%

25,345,600

40,065,428,000

637,040,305,200.0

0.57

27.89

7.95

0.47

2.96%

-20.73% -

11.40 9.45 3.40 1500.00

11.40 9.25 3.25 1500.00

0.00% 2.16% 4.62% 0.00%

1,400 33,100 341,500 -

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

4,936,920,400.2 1,529,641,297.8 1,377,868,088.0 153,408,000.0

-0.04 0.92 0.05 -62.40

-285.00 10.27 68.00 -24.04

0.00 0.92 0.00 0.00

0.00% 9.74% 0.00% 0.00%

MKT CAP. KSHS MN

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.

Wednesday April 8, 2015 | BUSINESS DAILY

MARKET DATA

MARKET DATA Equities & Bonds Kenya Treasury and Infrastructure Bonds

Share Price Performance Scorecard SCORECARD AS AT 7TH 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 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

CLOSE 11.10 11.40 78.50 159.00 16.45 799.00 133.00 26.00 49.50 20.75 60.50 126.00 9.50 21.00 119.00 234.00 15.50 59.00 33.75 324.00 49.50 3.90 5.60 9.45 280.00 20.25 3.40 37.25 127.00 570.00 280.00 130.00 112.00 10.90 7.75 61.00 9.05 17.40 18.60 1500.00 25.00 1124.00 8.55 12.00 2.20 19.65 240.00 23.50 57.50 5.65 128.00 27.50 15.90 5.75 14.15 46.75 33.25 336.00 26.00 34.00 18.10 10.50 43.50

% 1D 0.00 0.00 -1.88 0.00 -0.60 -0.12 0.00 0.00 0.00 -1.19 1.68 0.00 -3.06 0.00 0.00 -2.09 -2.82 0.00 0.00 0.93 -2.94 0.00 0.00 2.16 0.00 0.00 4.62 -0.67 0.00 0.00 0.00 0.00 0.00 0.46 -2.52 0.83 0.56 -0.29 -1.06 0.00 -0.99 0.00 -1.16 0.00 -4.35 -1.26 2.13 -2.08 3.60 -2.59 2.40 0.00 -4.22 1.77 -1.39 1.63 -6.99 -0.59 7.22 0.74 -2.43 0.00 -0.57

% 5D 0.00 -0.87 -1.88 0.00 0.30 0.00 -1.48 -3.70 6.45 -4.60 -4.72 0.80 -3.55 -1.18 0.00 -3.31 -1.90 0.00 4.65 4.18 -4.81 -1.27 0.00 1.07 -2.44 0.00 6.25 0.00 0.00 2.70 0.00 0.00 0.00 10.66 -5.49 0.83 -4.23 -3.87 0.54 0.00 0.00 0.00 -1.16 0.00 -10.20 -1.01 -3.23 -3.09 -3.36 -5.83 1.59 0.00 -6.74 3.60 -1.39 2.19 -11.92 -2.33 -0.95 1.49 3.72 -2.33 -3.33

% 1M 0.00 -0.87 -6.55 -0.62 -2.08 -5.89 -2.21 -9.57 -7.48 -14.43 1.68 -2.33 -15.93 1.20 -12.50 -4.49 -4.62 -1.67 -10.00 8.36 -3.88 -8.24 -8.94 8.00 2.19 0.00 -4.23 -3.25 0.79 5.56 -15.15 -7.80 0.00 -7.63 -20.51 3.39 -9.50 -2.25 0.54 0.00 3.09 0.90 -7.07 -1.64 -18.52 -0.51 4.35 -7.84 -8.73 -5.83 -3.03 0.00 0.63 -10.85 -9.58 -2.60 -22.67 -4.55 -7.96 0.00 0.56 -3.67 -8.90

% 3M 0.00 -5.00 -4.27 13.57 0.92 -11.22 5.56 -8.77 1.02 -6.74 -5.47 0.80 -3.55 13.21 7.21 -1.68 -3.13 1.72 -19.16 6.23 0.00 11.43 -0.88 9.88 12.45 0.00 -15.00 -19.46 4.10 25.27 55.56 -5.11 1.82 14.74 -14.36 8.93 4.02 9.09 7.51 0.00 6.38 45.78 -21.56 14.29 15.79 -7.53 -11.44 -6.00 -4.96 -1.74 8.47 0.00 14.39 -11.54 9.27 -0.53 -6.34 -0.88 -3.70 -5.56 0.28 1.94 4.19

% 6M 0.00 -12.78 6.00 -3.52 -15.27 -17.90 -21.80 8.39 -22.43 -3.20 -1.56 -14.80 -2.33 0.00 -13.01 0.65 -16.90 -16.15 16.13 -1.98 11.43 -31.71 -6.98 0.00 0.00 -22.80 -7.30 26.11 27.27 -13.33 10.89 3.32 -14.36 4.27 -2.69 17.97 1.92 13.64 27.97 -65.10 13.21 10.00 -13.63 -22.83 -14.55 -17.27 -37.22 2.40 0.00 24.71 -12.21 -3.41 2.75 0.76 -0.30 -11.86 -10.53 0.00 2.44 -8.42

% 1Y 0.00 -8.19 -20.10 0.00 53.36 -5.00 44.04 50.00 -36.15 64.63 17.76 0.00 5.26 40.83 4.00 -2.21 -35.87 16.38 25.10 54.69 13.04 30.23 5.66 0.00 0.00 6.43 0.00 83.87 147.79 -9.72 2140.00 -7.23 -41.06 32.61 -10.40 15.23 -1.33 64.47 81.29 -35.47 20.00 -33.33 -21.57 -12.96 -8.00 29.89 6.67 0.00 27.71 -15.44 -17.25 3.31 20.91 7.35 2.97 -19.53 0.00 -28.08 89.13

Corporate Bonds APRIL 7, 2015

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

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

COUPON (%)

PREVIOUS PRICE

2,917.10 1,250.80

13.5000 12.7500

105.2550 99.9620

1,480.60 196.50 1.00

13.2500 13.6000

99.1677 100.0000

500.00 4,239.70 760.30

12.7500 12.7500

1,300 700

100.7057 100.0000

11.5000

99.4819 85.5534

621.50 1,378.50

13.0000

100.0000 100.0000

97.91 2,402.09

12.5000

100.0000 100.0000

15,625 200.00 4,287.00 4,287.00

TOTAL VALUE TRADE (KSHS)

12.5000

100.0000

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE ISSUE

MATURITY

DATE

YIELD (%) PRICE

26-AUG-13

24-AUG-15

17,927.40

12.9390

FXD 4/2013/2YR

24-DEC-13

21-DEC-15

25,251.00

11.5530

100.7496

FXD 1/2014/2YR

24-MAR-14

21-MAR-16

20,000.00

10.8030

100.2806

FXD 2/2014/2YR

26-MAY-14

23-MAY-16

20,130.15

10.7930

100.2106

FXD 3/2014/2YR

22-DEC-14

19-DEC-16

8,905.12

10.8900

100.1030

FXD 1/2015/2YR

23-JAN-15

20-FEB-17

23,592.55

11.4700

100.9404

FXD 1/2010/5YR

24-MAY-10

18-MAY-15

11,924.85

6.9510

98.9033

FXD 2/2010/5YR

30-NOV-10

23-NOV-15

14,973.10

6.6710

97.2455

FXD 1/2011/5YR

31-JAN-11

25-JAN-16

22,083.10

7.6360

97.0450

FXD 1/2012/5YR

28-MAY-12

22-MAY-17

31,079.55

11.8550

101.7242

101.1994

FXD 1/2013/5YR

29-APR-13

23-APR-18

20,240.75

12.8920

FXD 2/2013/5YR

1-JUL-13

25-JUN-18

26,340.05

11.3050

100.3825 101.6262

11.0746

104.7640

FXD 3/2013/5YR

25-NOV-13

19-NOV-18

14,937.80

11.9520

FXD 1/2014/ 5YR

28-APR-14

22-APR-19

25,540.95

10.8700

97.8865

FXD 2/2014/ 5YR

23-JUN-14

17-JUN-19

16,418.25

11.9340

101.3943

24-APR-06

13-APR-15

3,060.25

13.5000

102.2668

FXD 1/2006/10YR

27-MAR-06

14-MAR-16

3,451.05

14.0000

102.1563

FXD 2/2006/10YR

29-MAY-06

16-MAY-16

5,028.10

14.0000

103.9277

FXD 1/2007/10YR

29-OCT-07

16-OCT-17

9,308.80

10.7500

99.3880

FXD 1/2008/10YR

29-OCT-07

16-OCT-17

2,992.75

10.7500

95.8019

FXD 2/2008/10YR

28-JUL-08

16-JUL-18

13,504.70

10.7500

100.4667

FXD 3/2008/10YR

29-SEP-08

28-SEP-18

4,151.60

10.7500

94.9482

FXD 1/2009/10YR

27-SEP-09

15-APR-19

4,966.85

10.7500

96.1897

FXD 1/2010/10YR

26-APR-10

13-APR-20

19,394.15

8.7900

86.1135

FXD 1/2006/9YR TEN YEAR BONDS

FXD 2/2010/10YR

1-NOV-10

19-OCT-20

18,849.90

9.3070

91.4516

FXD 1/2012/10YR

25-JUN-12

13-JUN-22

16,803.75

12.7050

107.2197

FXD 1/2013/10YR

1-JUL-13

19-JUN-23

12,643.05

12.3710

12.3000

100.3153

200,000,000

FXD 1/2014/10YR

27-JAN-14

15-JAN-24

30,520.25

12.1800

12.3500

99.0598

200,000,000

25-SEP-06

11-SEP-17

4,031.40

13.7500

97.6357

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

28-AUG-06

13-AUG-18

3,900.95

14.0000

105.2139

FXD1/2007/12YR

28-MAY-07

13-MAY-19

4,864.60

13.0000

104.9016

FIFTEEN YEAR BONDS FXD1/2007/15YR

26-MAR-07

7-MAR-22

3,654.60

14.5000

109.0397

FXD2/2007/15YR

25-JUN-07

6-JUN-22

7,236.95

13.5000

108.2496

FXD3/2007/15YR

26-NOV-07

7-NOV-22

17,568.00

12.5000

99.9310

FXD1/2008/15YR

31-MAR-08

13-MAR-23

7,830.90

12.5000

100.6070

FXD1/2009/15YR

26-OCT-09

7-OCT-24

9,420.45

12.5000

102.7808

FXD1/2010/15YR

29-MAR-10

10-MAR-25

20,823.73

10.2500

87.1031

FXD2/2010/15YR

25-APR-11

8-DEC-25

13,513.10

9.0000

81.9916

FXD1/2012/15YR

24-SEP-12

6-SEP-27

21,089.45

11.0000

FXD1/2013/15YR

25-FEB-13

7-FEB-28

40,886.33

11.2500

12.6000

91.1799

750,000,000

FXD1/2013/15YR

25-FEB-13

7-FEB-28

40,886.33

11.2500

12.7267

91.1799

200,000,000

FXD2/2013/15YR

29-APR-13

10-APR-28

17,385.85

12.0000

97.0362

91.7296

TWENTY YEAR BOND

7,000,000

FXD1/2008/20YR

30-JUN-08

5-JUN-28

20,360.95

13.7500

112.6478

FXD1/2011/20YR

30-MAY-11

5-MAY-31

9,365.80

10.0000

79.8372

FXD1/2012/20YR

26-NOV-12

1-NOV-32

43,082.72

12.0000

93.0683

28-JUN-10

28-MAY-35

20,192.50

11.2500

91.8177

28-FEB-11

21-JAN-41

23,888.95

12.0000

91.0563

19,726.85

12.5000

105.1593

100.0000

THIRTY YEAR BOND

3,429.00 226.00

12.8000

100.0000

INFRASTRUCTURE BONDS

6,000.00

13.0000

100.0000

2,000.00

13.0000

99.9807

5,514.50

12.5000

18,000,000

TWENTY FIVE YEAR BOND FXD1/2010/25YR

100

SDB 1/2011/30YR

IFB 1/2009/12YR

23-FEB-09

8-FEB-21

IFB 2/2009/12YR

7-DEC-09

22-NOV-21

18,897.65

12.0000

102.4081

IFB 1/2010/8YR

1-MAR-10

19-FEB-18

15,908.05

9.7500

98.2874

100.0000

IFB 2/2010/9YR

31-AUG-10

19-SEP-19

32,871.55

6.0000

IFB 1/2011/12YR

3-OCT-11

18-SEP-23

43,447.35

12.0000

13.0000

100.0000

5,080.00

12.9500

100.0000

285,800,000

NINE YEAR BONDS

13.0000

5,000.00

TOTAL VALUE TRADED (KSH)

FIVE YEAR BONDS

2,969.10 1,166.50 5,864.40

12.7500 12.750

(%)

TRADED

FXD 3/2013/2YR

8.0000 8.0000

7,000.00 7000.00

IN MILLIONS

APRIL 7, 2015

COUPON

TWO YEAR BONDS

93.8370 96.5610 96.5610

8.5000

ISSUED VALUE

100.0000 20,000,000

IFB 1/2013/12YR

30-SEP-13

15-SEP-25

38,841.68

11.0000

IFB 1/2014/12YR

27-OCT-14

12-OCT-26

35,060.55

11.0000

IFB 1/2015/12YR

30-MAR-15

15-MAR-27

25,695.35

11.0000

88.4106 11.1804

102.6057

58,700,000

99.6845 98.4647 11.5152

98.1874

100,000,000

BUSINESS DAILY | Wednesday April 8, 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 92.69 138.22 101.23 7.86 32.14 19.92 7.38 16.69 25.23 74.31 96.74 77.51 10.82 11.66 13.54 1.49 11.96 68.44 24.71 14.97 71.33

SELL 92.86 138.49 101.44 7.88 32.42 20.07 7.48 16.94 25.28 74.47 96.97 77.68 10.84 11.69 13.57 1.49 11.98 68.58 24.76 15.00 71.52

MEAN 92.78 138.35 101.33 7.87 32.28 19.99 7.43 16.82 25.26 74.39 96.86 77.60 10.83 11.68 13.56 1.49 11.97 68.51 24.73 14.98 71.43

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 1.09 119.90 1.49 0.96 0.77 1.25 8.62 8.03 1.80 6.88 55.32 2.58 135.90 62.29 3.73 25.24 274.88 23.51 3.93 128.91 1.80 59.99 0.40 11.70 2.23 1.49 7.01 185.78 2.85 0.51 17.63 56.39 3.41 4.06 21.55 110.31 474.10 3.67 107.98 1,545.00 0.10 915.00 99.96 6.20 177.00 97.41 7.63 20.35 3.83 42.60 15.00 6,780.00 685.00 92.40 457.00 84.00 11.78 1.37 9.88 3,022.00 289.00 428.10 35.52 199.05 13.16 200.02 2,025.50 1.54 4,300.00 21,875.00 705.00 11.78 32.57 1.95 1,850.00 2,990.00 603.79 603.73 36.03 11.79 378.00

ASK 1.09 119.91 1.49 0.96 0.77 1.25 8.62 8.03 1.81 6.88 55.33 2.58 136.21 62.30 3.74 25.28 275.04 23.57 3.94 129.51 1.80 60.19 0.40 11.71 2.25 1.49 7.01 185.83 2.85 0.51 17.73 56.97 3.42 4.07 21.60 110.51 477.10 3.67 109.06 1,595.00 0.10 935.00 101.46 6.20 178.00 97.81 7.63 20.55 3.85 43.60 15.50 7,280.00 696.00 92.60 458.00 85.00 11.82 1.37 9.91 3,105.00 292.35 448.43 37.19 199.15 13.82 201.02 2,035.60 1.54 4,400.00 23,230.00 712.00 11.83 32.59 1.95 1,860.00 2,998.00 610.79 609.73 36.23 11.80 381.00

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

3577

38.5

1.09

0.7

2.2

8.16

SCHNEIDER ELECTRIC SE

FRANCE

ELECTRICAL COMPONENTS&EQUIPMENT

73.89

ANHEUSER-BUSCH INBEV

BELGIUM

BREWERS

115.7

0.78

1.07

2.44

21.9

13.61

1.2

1.05

3.3

23.3

48.94

VODAFONE GROUP

UNITED KINGDOM

MOBILE TELECOMMUNICATIONS

222.2

2.15

0.98

-1.11

-0.2

0.47

ZURICH INSURANCE GROUP

SWITZERLAND

FULL LINE INSURANCE

330.5

0.92

1.5

20.49

SANOFI SA

FRANCE

PHARMACEUTICALS

93.73

0.8

0.86

2.22

23.9

24.99

BANCO SANTANDER S.A.

SPAIN

BANKS

7.07

0.05

0.77

2.79

2.1

4.95

BANCO BILBAO VIZCAYA ARGN SPAIN

BANKS

9.66

0.07

0.74

3.45

24.2

11.85

HSBC HLDGS

UNITED KINGDOM

BANKS

582.3

3.7

0.64

0.66

-4.3

-4.73

FINANCIERE RICHEMONT

SWITZERLAND

CLOTHING&ACCESSORIES

78.95

0.45

0.57

-1.19

-11.1

-8.52

AXA

FRANCE

FULL LINE INSURANCE

23.92

0.11

0.48

1.64

24.5

23.78

RECKITT BENCKISER GRP

UNITED KINGDOM

NONDURABLE HOUSEHOLD PRODUCTS

5832

0.47

-0.48

11.9

20.12

UBS GROUP

SWITZERLAND

BANKS

18.54

0.07

0.38

1.64

8.5

-0.75

BNP PARIBAS

FRANCE

BANKS

57.24

0.21

0.37

1.87

16.2

-1.26

BT GROUP PLC

UNITED KINGDOM

FIXED LINE TELECOMMUNICATIONS

442.9

1.5

0.34

-2.44

10.3

15.55

PRUDENTIAL

UNITED KINGDOM

LIFE INSURANCE

1679.5

4.5

0.27

-0.21

12.6

26.85

GLAXOSMITHKLINE

UNITED KINGDOM

PHARMACEUTICALS

1569.5

0.26

...

14.1

-0.85

DEUTSCHE BANK

GERMANY

BANKS

32.77

0.08

0.24

3.6

31.2

-0.53

TELEFONICA S.A.

SPAIN

FIXED LINE TELECOMMUNICATIONS

13.32

0.03

0.23

-0.78

11.7

16.98

BG GRP

UNITED KINGDOM

INTEGRATED OIL&GAS

852.9

1.5

0.18

-2.34

-1.4

-25.09

BP PLC

UNITED KINGDOM

INTEGRATED OIL&GAS

442.85

0.75

0.17

-0.17

7.7

-8.77

LVMH MOET HENNESSY

FRANCE

CLOTHING&ACCESSORIES

163.55

0.25

0.15

0.8

23.7

35.23

ASTRAZENECA

UNITED KINGDOM

PHARMACEUTICALS

4645

4.5

0.1

-0.87

17.59

ABB

SWITZERLAND

INDUSTRIAL MACHINERY

20.74

0.02

0.1

1.52

-1.9

-10.14

NESTLE

SWITZERLAND

FOOD PRODUCTS

73.15

0.05

0.07

0.3

8.61

ALLIANZ SE

GERMANY

FULL LINE INSURANCE

163.5

0.05

0.03

2.03

32.98

DEUTSCHE TELEKOM

GERMANY

MOBILE TELECOMMUNICATIONS

17.03

-0.02

-0.09

0.03

28.5

48.41

SIEMENS

GERMANY

DIVERSIFIED INDUSTRIALS

100.85

-0.1

0.75

7.6

1.89

NATIONAL GRID

UNITED KINGDOM

MULTIUTILITIES

876.9

-1.6

-0.18

-0.52

-4.5

6.48

ROYAL DUTCH SHELL A

UNITED KINGDOM

INTEGRATED OIL&GAS

2024.5

-6.5

-0.32

-0.49

-6

-7.77

L’AIR LIQUIDE

FRANCE

COMMODITY CHEMICALS

119.8

-0.4

-0.33

-0.29

16.5

22.21

ROCHE HOLDING PART. CERT.

SWITZERLAND

PHARMACEUTICALS

266.5

-0.9

-0.34

1.25

-1.3

1.22

NOVARTIS AG

SWITZERLAND

PHARMACEUTICALS

96.1

-0.35

-0.36

-0.1

4.1

28.39

LLOYDS BANKING GROUP PLC

UNITED KINGDOM

BANKS

79.08

-0.31

-0.39

0.04

4.3

2.83

RIO TINTO

UNITED KINGDOM

GENERAL MINING

2751

-11

-0.4

-2.08

-8.3

-18.54

SAP

GERMANY

SOFTWARE

67.07

-0.33

-0.49

1.09

15.1

13.7

STANDARD CHARTERED

UNITED KINGDOM

BANKS

1076.5

-5.5

-0.51

-2.4

11.8

-15.96

BASF

GERMANY

COMMODITY CHEMICALS

92.64

-0.61

-0.65

0.62

32.6

15.76

CREDIT SUISSE GROUP AG

SWITZERLAND

BANKS

26.34

-0.21

-0.79

1.5

-9.24

ENI

ITALY

INTEGRATED OIL&GAS

16.08

-0.16

-0.99

0.25

10.8

-11.65

Global Indices NAME

LOCATION

LAST

NET.CHNGPCT.CHNG

DJ INDU AVERAGE

NEW YORK

17,880.85

117.61

FTSE EUROTOP 100

LONDON

3,226.08

46.20

1.45%

3,177.95

3,226.20

3,177.95

3,179.88

XETRA DAX PF/D

FRANKFURT

12,086.23

118.84

0.99%

12,057.34

12,108.54

12,035.70

11,967.39

CAC 40 INDEX/D

PARIS

5,140.86

66.72

1.31%

5,106.36

5,142.13

5,096.00

5,074.14

23,614.39

0.66%

OPEN

HIGH

LOW

17,755.50

17,941.79

17,646.80

17,763.24

FTSE MIB/D

MILAN

305.86

1.31%

23,502.00

23,623.36

SMI PR/D

SWITZERLAND 9,220.59

89.99

0.99%

9,169.48

9,234.13

HANG SENG INDE/D

HONG KONG

192.89

0.77%

25,214.33

25,297.80

25,152.57 25,082.75

25,275.64

23,477.02 23,308.53 9,164.84

9,130.60

NIKKEI 225 INDEX

TOKYO

19,640.54

242.56

1.25%

19,539.03

19,667.48

19,501.31

19,397.98

ALL ORDINARIES

AUSTRALIA

5,893.20

23.46

0.40%

5,869.70

5,947.80

5,868.10

5,869.74

STRAITS TIMES/D

SINGAPORE

3,465.62

12.71

0.37%

3,469.38

3,476.20

3,459.94

3,452.91

SSE COMPOSITE/D

SHANGHAI

3,960.98

97.05

2.51%

3,899.42

3,961.67

3,891.73

3,863.93

S&P SENSEX/D

MUMBAI

28,516.59

12.13

0.04%

28,582.33

28,641.08

28,274.36 28,504.46

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 1017.00 2924.00 1562.60 465.80 1589.00 734.50 1097.25 292.70 561.20 4664.00 528.00 257.18 3616.00 893.80 852.25 1458.50 1883.50 453.00 1730.00 445.16 3311.00 261.00 1193.00 1141.00 2834.00 1779.00 1910.25 206.80 193.50 1154.50 708.50 302.10 362.70 288.35 1588.00 679.50 1162.00 585.38 536.00 589.63 2672.00 1285.00 3161.00 2588.00 253.50 3458.00 218.50 367.10 1278.00 284.72 80.25 559.00 561.00 198.60 893.10 7075.00 232.20 1009.00 581.50 1695.80 1437.00 5949.00 353.50 2083.00 1159.75 2189.00 582.05 2835.00 953.00 4828.00 431.80 3648.50 269.00 3259.00 2472.00 473.00 5300.01 482.70 1138.00 1151.00 147.20 1544.72 1091.00 2137.00 643.00 303.90 250.62 2897.00 959.34 505.78 224.90 1780.00 4046.00 1547.00 5275.99 7.60

CLOSE 997.00 2866.00 1551.00 464.90 1568.00 718.00 1099.00 288.40 553.00 4645.00 524.50 254.75 3577.00 852.90 838.50 1431.50 1855.00 442.85 1715.00 442.90 3310.00 253.20 1183.00 1115.00 2793.00 1762.00 1890.50 208.00 191.40 1130.00 691.50 298.80 360.70 280.75 1569.50 667.50 1162.00 582.30 537.00 598.50 2626.00 1271.00 3131.00 2529.00 251.00 3395.00 211.50 362.80 1259.00 281.20 79.08 550.50 554.00 195.70 876.90 7055.00 227.40 962.50 569.00 1679.50 1436.00 5832.00 349.60 2024.50 1156.00 2126.50 584.00 2751.00 943.50 4790.00 428.20 3616.00 260.40 3223.00 2449.00 469.90 5160.00 480.00 1116.00 1147.00 144.20 1508.00 1076.50 2097.00 626.00 284.70 244.30 2856.00 938.00 479.20 222.20 1737.00 4019.00 1539.00 5255.00 7.95

NET.CHNG 20.00 58.00 12.00 0.90 21.00 16.50 -1.00 4.30 8.50 18.00 4.00 2.40 39.00 40.90 13.50 27.00 28.00 10.10 15.00 2.20 1.00 7.80 10.00 29.00 41.00 17.00 20.50 -1.20 2.10 25.00 17.00 3.30 2.00 7.70 18.50 12.00 0.00 3.20 -1.00 -8.50 46.00 14.00 30.00 59.00 2.50 61.00 7.00 4.30 19.00 3.50 1.17 8.50 7.00 2.90 16.20 20.00 4.80 46.50 12.50 17.00 1.00 117.00 3.90 58.50 4.00 62.50 -1.50 84.00 9.50 38.00 3.60 32.50 8.60 36.00 23.00 3.10 140.00 2.70 22.00 4.00 3.00 37.00 14.50 40.00 17.00 19.20 6.30 41.00 21.50 26.30 2.70 43.00 27.00 8.00 25.00 -0.35

PCT.CHNG 2.01% 2.02% 0.77% 0.19% 1.34% 2.30% -0.09% 1.49% 1.54% 0.39% 0.76% 0.94% 1.09% 4.80% 1.61% 1.89% 1.51% 2.28% 0.87% 0.50% 0.03% 3.08% 0.85% 2.60% 1.47% 0.96% 1.08% -0.58% 1.10% 2.21% 2.46% 1.10% 0.55% 2.74% 1.18% 1.80% 0.00% 0.55% -0.19% -1.42% 1.75% 1.10% 0.96% 2.33% 1.00% 1.80% 3.31% 1.19% 1.51% 1.24% 1.48% 1.54% 1.26% 1.48% 1.85% 0.28% 2.11% 4.83% 2.20% 1.01% 0.07% 2.01% 1.12% 2.89% 0.35% 2.94% -0.26% 3.05% 1.01% 0.79% 0.84% 0.90% 3.30% 1.12% 0.94% 0.66% 2.71% 0.56% 1.97% 0.35% 2.08% 2.45% 1.35% 1.91% 2.72% 6.74% 2.58% 1.44% 2.29% 5.49% 1.22% 2.48% 0.67% 0.52% 0.48% -4.40%

Wednesday April 8, 2015 | BUSINESS DAILY

LI E

WATER Wastage should wo≥≥y homes

MASTERS Whe≥e golfe≥s a≥e t≥eated like kings

Page 30

Page 31

H E A LT H

Scientists discove≥ chemical t≥ap fo≥ mala≥ia mosquito RESEARCH Icipe and others say naturally

occurring Cedrol to support other methods of killing mosquitoes before they reach human beings. A partnership of local and international But these indoor malaria control inresearchers has for the first time dis- terventions have not been 100 per cent covered a naturally occurring chemi- effective due to various factors. For instance, even though ITNs are cal that attracts pregnant mosquitoes to certain breeding sites, ranking as a distributed to high-risk populations major development in efforts to con- free of charge by the government, the trol malaria. 2010 Malaria Indicator Survey statisFemale Anopheles gambiae mos- tics show that only 42 per cent and 41 quitoes were more likely to lay eggs in per cent of children (below five years) water containing a chemical known and pregnant women sleep under one as Cedrol than in those without it, the respectively. Statistics also show that only about chemical’s scent pulled them to those 10 per cent of households in malaria ensites, the scientists found. “This paves the way for the develop- demic regions have their interior walls ment of new attract-and-kill strategies sprayed with pesticides targeting mafor malaria control,” says the study pub- laria-carrying mosquitoes. lished in the Malaria Journal by the In other instances, mosquitoes may OviART research group, a team com- bite people outside, thereby transmitprising of researchers from Icipe, the ting malaria parasites to them before London School of Hygiene and Tropical they get into their households. Medicine, the Swedish Royal Institute To address this challenge, the Oviof Technology and the UK’s Durham ART researchers focused on what the Anopheles gambiae University. mosquitoes do after The female anopheles they feed on a blood mosquito, responsible for The female transmitting malaria, mates meal rather than beanopheles only once in her lifetime. fore that. mosquito, that The sperms she receives “To improve are then stored within her t≥ansmits mala≥ia, vector control and body in a special sac known mates only once in work towards malaria elimination, as spermatheca, which will he≥ lifetime we need to look bebe used to fertilise eggs that yond blood-feedthe mosquito will lay over ing to better unher lifetime. derstand mosquito Each time the mosquito wants to fertilise the eggs, it needs to behaviour at other times in her life,” feed on a blood meal which is sought said Mike Okal, an Icipe researcher and PhD student at teh the London from human beings or animals. “So at this point, if they suck blood School of Hygiene, who co-authored from a person infected with malaria the study. The researchers discovered that afit will pick the malaria parasites and pass it to other healthy individuals they ter feeding on blood from a person, the bite afterwards,” says Dr Njagi Kiambo mosquitoes lay eggs in a pool of water. from the Ministry of Health Division of But the team noticed that some pools Malaria Campaign. would be full of larvae while others reIt is for this reason that malaria mained empty. “For the past six years, we have been prevention strategies, such as the use of insecticide treated bed nets (ITNs) studying how the major malaria-transand Indoor Residual Sprays (ITNs) aim mitting mosquito in Africa selects which BY SARAH OOKO

Xxxxxx SARAH OOKO

pool to lay her eggs in, and asking how that choice could be manipulated so we can intercept and kill her before she lays hundreds of eggs,” said Mr Okal. The research team in Kenya— at Icipe’s Thomas Odhiambo Research Station in Mbita on the shores of Lake Victoria — set up a number of pools of water with various infusions such as grasses, diﬀerent soils, and rabbit food pellets. By counting the number of mosquito larvae in each, the researchers then judged which pools the mosquitoes preferred to lay eggs in. The researchers quickly honed in on one particular soil, which they dubbed their ‘magical mud’. “We found that mosquitoes were more than twice as likely to lay eggs in water infused with this particular soil than in water fresh from Lake Victoria,”

explained Mr Okal. After various tests conducted by their colleagues at the Swedish Royal Institute of Technology, the OviART team found that the soil contained a chemical known as Cedrol which was also discovered in 50 per cent of the natural habitats where the mosquitoes normally breed in Lake Victoria.

Two choices Cedrol was then tested at Icipe on pregnant mosquitoes in laboratory cages as well as those in the wild. They were offered two choices: lake water and lake water treated with Cedrol. The researchers observed that the caged mosquitoes were two times more likely to lay eggs in water with Cedrol than in the untreated pool. During ﬁeld tests, it was also discovered that wild mosquitoes were three

times more likely to be caught in traps baited with Cedrol than in traps without the chemical. As the chemical has the ability to attract the mosquitoes over large distances, the researchers noted that this could provide a novel tool for curbing malaria transmission in areas where current gold standard indoor interventions — such as IRS or ITNs are not enough for malaria elimination. Malaria is still the leading cause of death in Kenya, killing about 23,000 people annually based on the 2014 Economic Survey. The Anopheles gambiae mosquitoes are among the major contributors to fatal cases of the disease in Kenya just as in other sub-Saharan African nations. sooko@ke.nationmedia.com

BUSINESS DAILY | Wednesday April 8, 2015

Life: Health

Say bye to snacks fo≥ healthie≥ living by having eating patte≥n

STUDY

FOOD HABITS

Choose balanced meals throughout the day to hit your personalised calorie demands

Treating a snakebite: Upto 32,000 people die from snake bites every year in sub-Saharan Africa, say researchers.

Poisonous snakes ‘milked’ fo≥ potent new anti-venom

outines help stabilise us. Without them, our days would fall to chaos, and we wouldn’t be able to manage our time and conduct our business as well. It’s no wonder, then, that the same logic applies to your diet and ﬁtness routines. As the old cliché goes, consistency is key. In two studies, researchers actually found that people in a test group that was served the same meal every day ended up eating less calories each day than a group that had more variety. This phenomenon is called “habituation” — or to put it simply, getting used to repeating stimuli. The Daily Mail cleverly dubbed this potential diet trick as “boredom.” It doesn’t have to be, though. Now, unlike the study, I’m not suggesting that you eat the same things every day at the same time. Rather, you should have models to follow. For example, my breakfast usually consists of two eggs, greek yoghurt and healthy cereal. My lunch consists of vegetables and either chicken or ﬁsh and a side such as rice. I’m most consistent with dinner. Every night I eat fruit, including an apple, grapes and berries. The key is to have balanced meals throughout the day to hit your personalised calorie goal. (Of course, calories aren’t the only measurement that matters, but it is the most widely applicable for most people.)

Great start Think of it like blocking out time on your schedule — even if it’s in your head. When you set expectations for the day, it’s easier to follow through. The trick to getting started is to form a baseline. Slowly get into the habit of eating healthier foods every meal, and eventually, you’ll be able to play with the formula. A great start is incorporating recommended servings of fruit and vegetables into your diet. Being consistent with the times you eat is also a healthy habit to form. If you eat each meal at a similar time every day, your body will adjust and you’ll be less likely to snack. The same applies for exercise. To form your baseline, try repeating a heart-raising activity, such as jogging or biking, for 10 to 20 minutes every day or every other day. Eventually, you’ll be habituated to it, and you’ll need to increase intensity, either by exercising longer or doing something more challenging. Treat it as a challenge, and it’ll become a

Your fruit, your health: Incorporate recommended servings of fruit and vegetables.

fun habit with immense beneﬁts.

Whole grains “Improvement and change occur when you do things often,” writes Tony Horton, the trainer best known for the P90X ﬁtness programme. “Stopping and starting all the time will kill any momentum you need to succeed. You must ﬁnd ways to stay in the game.” Consistency can be best friends with productivity, as long as you continue to make small improvements. And not only will building a routine help you live a healthier life, it will also help build

a healthier business. According to a 2012 study published in Population Health Management, individuals whose diets consisted of whole grains, fruits and vegetables were 66 percent more likely to report being more productive than people who ate poorly. Employees with a regular ﬁtness routine reported 50 percent higher levels of productivity compared to infrequent exercisers. As with any health decisions, always speak to a doctor and/or nutritionist before making any big changes.

A new anti-venom to treat victims of potentially deadly snake bites in sub-Saharan Africa is just a few years away from reality, according to scientists at the Liverpool School of Tropical Medicine (LSTM). They aim to create a potent new anti-venom that can be stored safely at room temperature, without the need for refrigeration. Dr Robert Harrison is leading the research at LSTM’s Alistair Reid Venom Research Unit, where he has collected 21 species — 450 animals in total — of sub-Saharan Africa’s most deadly snakes. Harrison and his team have been extracting venom from the reptiles, using a process known as ‘milking’, to concoct a new anti-venom that he hopes will prevent the deaths and severe injuries of snake bite victims. “32,000 people are dying from snake bite every year in sub-Saharan Africa. But it’s not only that; other people who survive the bite — about 100,000 of them — are living with severe disabled limbs or legs, just really very disabling conditions,” said Harrison. He added that the impact on communities can be particularly severe if a snake bite renders a family’s main bread-winner unable to work: “People are exposed to snakebite by whatever they’re doing and wherever they’re doing it. And what it does is affect these people dramatically, because the loss of the main income earner for instance because his arm can no longer function or he’s had his leg amputated as a result of snakebite. Or, god forbid, he dies from snakebite then you can see how massively that would affect this tiny little family unit that is living on probably less than a dollar a day.” Anti-venoms are made by first ‘milking’ the venom from a snake before injecting it in low doses into a horse or sheep. The animal doesn’t become ill, but the venom induces an immune response that produces anti-bodies in the animal. These anti-bodies are then extracted from the animal’s blood to create anti-venom. In rural areas of sub-Saharan Africa where people are exposed to various species of deadly snakes, the current treatment involves a broad-spectrum anti-venom to cover all the snake species that could be responsible. But the current method for producing anti-venoms means the animals make only a small amount of anti-body to any one species; resulting in a weak anti-venom. Patients are, therefore, having to be treated with multiple vials; carrying an increased risk of side-effects and making the treatment largely unaffordable to rural subsistence farmers. According to the UK’s Medical Research Council, a single vial of the most effective broad-spectrum antivenom currently costs about $140 per vial, and because several vials are needed to achieve a cure it can cost over $500 per treatment; an insurmountable cost for people who often earn less that $1 a day. -REUTERS

-ENTREPRENEUR

Wednesday April 8, 2015 | BUSINESS DAILY

Life: Health

Follow sleep hygiene ≥oute o≥ consult an expe≥t LIFE COACHING DR FRANK NJENGA

n a recent entrepreneur retreat, we were informed by our trainer that the best way to succeed is to manage our stress levels and to practise self-care which includes exercising regularly, eating healthy foods, pursuing creative outlets and getting plenty of sleep. My problem is that I have a problem getting sleep and I do not want to go into taking sleeping pills. If I wake up in the middle of the night, I hardly get back to sleep and end up having a rough day. Is there a way out of insomnia?

ou seem to have attended a good training programme in which the fundamentals of good health were given prominence. Experts in health are more and more inclined to put emphasis on the preventive aspects of medicine not only because in the long run it is cheaper but in the case of an entrepreneur, health is the number one asset in the balance sheet. Many conversations around entrepreneurship forget to mention the health aspects of the whole enterprise failing in the process to recognise the centrality of health in the ﬁnal equation to success. It goes without saying that both physical and psychological well-being is central to the proper formulation and running of enterprise. The aspect of stress management is of critical importance, mainly because setting up of a business, is in a sense of transitional state. It is well known that transitional states can be very stressful. The most stressful stage in the life of a human being is at the time of being born.

Bottom Line Fish oil supplements might make cancer chemotherapy less effective — but many people with cancer were taking those supplements in a recent survey. All six of the fish oil supplements the researchers tested contained a specific fatty acid that’s been found to reduce the effectiveness of chemotherapy in mice, the researchers report in JAMA Oncology. People receiving chemotherapy should refrain from taking fish oil supplements and discuss any supplement with their doctors, said Dr Emile Voest, the study’s lead author

It is at this time that many things go wrong and great care must be taken at the time of birth. The next transition is at adolescence and as you must know, this is a testing time for both parents and their children. Early childhood, marriage, parenthood and retirement are all stressful times in the life of a human being. You are in the transition of moving from one stage to the one of being an entrepreneur. As would happen in any other of the stages above, stress levels are expected to rise, and sleep problems are the most obvious sign. Just to get the basics out of the way, sleep is one of the most important part of our daily lives. It is the so-called restorative phase of life, in which the body goes into the repair mode, correcting all these bits and pieces of itself that have been depleted during the working hours. Without sleep, the body wears out and becomes most inefficient. The repair work goes on during REM (Rapid Eye Movement Sleep) and so, it is important that you aim to achieve just that type of sleep. Alcohol which is taken by some people takes away REM sleep and that is why when a drunk person wakes up in the morning, tiredness and headaches are the first things they feel. You may also want to know that sleep problems come in many shapes and forms. As an example, the sleep challenges we all have when we have exciting news may be considered normal. A young man whose proposal for marriage has been accepted by his girlfriend, might be unable to sleep for several days. A few days before an important exam will find many students sleepless. Similarly, a mother with a sick child will lose sleep just like the person who is late in mortgage repayments. Difficulties in falling asleep are completely different from problems of waking up at 3am accompanied by

Sleep is one of the most important part of daily lives.

tossing and turning until 6am, when a deep sleep threatens just as time for getting up arrives. The former is associated with stress and anxiety while the latter is more common in clinically depressed persons. Before you consider sleeping pills therefore, make sure that the sleep problem has been adequately addressed by an expert. You may or may not know something about sleep hygiene. There are a number of things you can do to improve the chances of a good night’s sleep. It is advised that you go to bed at the same time everyday (if you can) That

way, your biological clock is stable and promotes a regular cycle, particularly if you are able to wake up at the same time daily. The role of regular exercise in the promotion of good sleep is not emphasised enough. Other simple things you can do to improve sleep include making sure your bedroom is dark with minimal noise. Some people ﬁnd thick curtains and ear plugs helpful. Your bed is only intended for sleep, not for resting on during the day or other times. Whereas some people ﬁnd exercise in the evening to be useful, most are so stimulated that by the time they go to bed after an evening of heavy exercise,

the body is too charged to sleep. Coﬀee, tea and alcohol have adverse eﬀects on sleep for many people. Although alcohol makes you drowsy, it leads to poor sleep without REM! Too much food late at night, computer games, horror movies and important and deep conversations with loved ones can sometimes lead to high stimulation and lack of sleep. If you stay in bed for more than 2030 minutes without sleep, then get up and out of bed; read a book or Bible, watch non stimulating TV or listen to quiet music, then go to bed when you feel sleepy. Good sleep hygiene is important. When all else fails, see your doctor.

Is fish oil safe during chemotherapy? from the Netherlands Cancer Institute in Amsterdam. “I’m always discussing it with my patients,” he said. “Please have an open relationship with me and tell me what you’re taking.” He and his colleagues say omega-3 fatty acids are consumed by about a fifth of Americans with cancer — usually through fish oil. Fish oil is often sold in capsules for about $10 or $11 for 100 pills. The researchers had previously found that even a small amount of two fatty acids reduced the effectiveness of chemotherapy in mice with cancer.

These fatty acids may ultimately enable cancer cells to repair themselves faster after chemotherapy, Voest said. When his team looked for the two fatty acids in six ﬁsh oil supplements, one was not detected but the fatty acid called 16:4(n-3) was ubiquitous. The researchers also surveyed 400 people receiving treatment for cancer in November 2011. Of 118 people who returned the surveys, 35 percent reported using nutritional supplements and 11 percent reported using omega3 fatty acid supplements. In another part of the study, the re-

searchers then had 30 volunteers without cancer take 10 or 50 millilitres of the three ﬁsh oil supplements. Levels of 16:4(n-3) peaked in their blood about four hours after taking the 10 mL supplements; levels returned to normal after about eight hours. Levels of the fatty acid remained elevated longer among those taking 50 mL. Furthermore, when 20 volunteers ate mackerel or herring, levels of 16: 4(n-3) in their blood went up. Eating salmon or tuna had little or no eﬀect, however. The researchers conclude that until

more is known, people on chemotherapy should avoid ﬁsh oil - and herring and mackerel - the day before and after their treatments. They note that the Dutch Cancer Society and the Dutch National Working Group for Oncologic Dieticians recommend that people receiving chemotherapy avoid ﬁsh oil. “It’s an intriguing observation, which warrants further investigation,” said Dr Powel Brown, chairman of the Department of Clinical Cancer Prevention at the University of Texas. -REUTERS HEALTH

BUSINESS DAILY | Wednesday April 8, 2015

Life: Health

How i≥≥egula≥ wate≥ supply leads to ≥ise in wate≥ bo≥ne diseases

TIMES CROSSWORD 24039

Precious commodity: Unsafe and erratic supply contributes to water-borne diseases. JOSEPH KANYI

DOCTOR ON CALL EDWARD OMETE The just ended celebrations of the World Water Day show that some progress has been made but we still have a way to go in terms of delivering this crucial commodity to the population. Many declarations have been made promising water to every household, but missed. And deadlines extended. Part of the blame lies with the government but citizens are also guilty. A few facts regarding water supply. It is recommended that every person has at least 20 litres of water daily for adequate hygiene, food, drinking.... This figure may be attained in sections of the city and even surpassed but is seldom reached in most rural areas. Quite ironical though “waste” water through toilet flushing accounts for much of this urban use. Houses built in the ‘70s, ‘80s and even ‘90s still have the large cistern tanks with four gallons. With an average three toilet flushes per person daily, this translates to about 40

litres for toilet use. A pretty interesting data visualisation tool shows the peak demand for water is during public holidays, weekends and especially if schools are closed. Demand also increases in cold weather. Alcohol consumption and entertainment gatherings on weekends are the link. Water is important because unsafe and erratic supply is a contributor of water-borne diseases. In rural areas water vendors with donkeys supply the homes, offices and hotels with this commodity. There is a correlation in the peak of diarrhoeal conditions mirrored to when regular water supply ceases. The economic cost of managing water borne diseases has been shown to be more than the cost of ensuring adequate clean water supply to the households. Yet the latter remains elusive. Three main factors are to blame for water-borne diseases. The first one being the laxity of public health officials. Ideally water vendors should be inspected and issued with medical

Smart meters The few people doing this push the water expenditure in these areas up to three times by making people buy water. Water stakeholders need to discuss how this issue can be tackled. Innovations in smart meters, billing and stiﬀer penalties for utility infrastructure tampering must be discussed. Water ﬁrms must also shift to renewable power sources like solar and wind where feasible to bring down their pumping costs. Newer ways of paying for commodity like a water levy via airtime may be considered if there is a correlation between water use and phone bills. @edwardomete Email: info@healthinfo.co.ke

TIMES 24038

17 women meet in hospital to visit boyf≥iend A philandering Chinese man who secretly had 17 girlfriends was exposed when all of his paramours arrived at the same time to visit him in the hospital. The Changsha man, identiﬁed by the surname Yuan, was hospitalised March 24 with nonlife-threatening injuries from a car accident and doctors got into contact with a number of people they believed to be family members. However, the 17 people who turned up at the hospital were

revealed to be Yuan’s girlfriends, who were unaware of each others’ existence until they all ar-

rived at the hospital at the same time. A girlfriend who identiﬁed herself as Xiao Li said she has spoken with several of the other women and discovered many of them had been regularly giving him money. She said one of the women had been supporting him ﬁnancially for nine years. Yuan, who also allegedly fabricated his education background to get a job with a large company, is facing a fraud charge.

16 17

19 20

Across

(7)

1 Paper ﬁnished? Stop working! (5,2)

3 Cutting device into which writing implement goes? Right (9)

5 Farm animal was found with horse or bull (7) 9 Write sign on label, a magical symbol (9)

4 Cut new academic work that’s the next thing here (11)

10 Hero’s expression of delight (5)

5 Part of skirt that may attract attention (3)

11 Back one form of gambling in ship (5)

6 Russian writer turns on left (5)

12 Source of illumination one badly needed, left in dark (4,5)

7 Surrounded by feelings of dread, doctor is brought in (7)

14 Thus ennui acts — I could become apathetic (14)

8 Pile — has something small and sharp and unknown inside? (8)

17 Political group in power, with margin increased by miles (8,6)

13 Bad smell rising — ﬁsh smell — past its sell-by date? (11)

21 Emotional release is beyond heretical group (9)

15 Water a mother pig (5,4)

23 Source of wood in kit as ordered (5)

16 Used by writer, it gives no impression of character (5,3)

24 With major difﬁculty, returned parent to old country (5)

18 Temporarily appointed, I’m put in grave situation initially (7)

25 Break-up of empire left-winger initially staged (9)

19 Person speaking as absolute monarch (7)

26 Stuff English family assembled in dish (7)

20 Couple working together in text and e-mail (6)

27 More excited by article showing mathematical achievement (7)

22 From a large number of Indians, heard expression of regret (5)

Down

25 Criticise all in many words, initially

1 Worker taken from pool, perhaps, getting unusually tipsy after short time (6) 2 Maiden appearing shortly in rainy season

SUDOKU PUZZLE

227

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

C A S E L O A D L E A D O N A M E M O B V S H O R T E N I N G S T E W U T D E O A R A S H R O P S H I R E L A D L E W T R O U S T R I N G Y C H AMF E R E E E R ME D U L L A R A P T O R S L N I E L S P F E E L G O O D F A C T O R L A N T C B A MA L T I N C A P A C I T Y N E T P R T E O D E N S E H E A D G E A R

SUDOKU 226

certificates. Their water should also be tested regularly to vouch for quality. This rarely happens. Secondly, public water supply companies should be supported to have bowsers. These can take over supply whenever power is disconnected. Because their charges are lower, they help the poor achieve adequate and clean water. On average a jerry can of water retails at Sh20 but jumps to Sh40 in scarcity. Coincidentally, most public utilities deliver water at about 20 cents a litre. With adequate bowsers, the price will be lowered and more families and businesses can afford adequate amounts. The third and main cause of the problem is that many water supply firms’ power disconnection is due to failure to pay water bills. It is indeed true that a part of the citizenry especially in the densely populated urban areas and informal settlements does not pay for utility bills.

Wednesday April 8, 2015 | BUSINESS DAILY

PREMIER LEAGUE 2-1 defeat leaves Pellegrini side at a distant fourth

Man City hopes of ≥etaining EPL c≥own in tatte≥s with loss to Palace P alace left Manchester City’s hopes of retaining their Premier League crown in tatters after a 2-1 win at Selhurst Park on Monday to leave Manuel Pellegrini’s side trailing a distant fourth in the title race. The defeat kept City nine points behind leaders Chelsea and seemingly now in a battle to finish above Arsenal and Manchester United. Chelsea, who have eight matches to play, have 70 points, followed by Arsenal on 63, Manchester United on 62 and City on 61. That trio all have seven matches remaining. Impressive Palace defended resolutely to withstand early City pressure before taking the lead through Glenn Murray after 34 minutes. He swept in from close range after Scott Dann’s shot bounced off goalkeeper Joe Hart’s leg into his path. The goal stood despite City claiming Palace had been offside in the build-up, but there was no argument about Palace’s second three minutes into the second half. Fernandinho brought down the outstanding Murray 20 metres from goal and Jason Puncheon swept his curling free kick over the wall and past Hart into the corner of the goal. Yaya Toure gave City some hope with a thunderous drive after 78 minutes but although Palace dealt his team what could be a fatal blow to their title hopes, Pellegrini was not conceding the race was over yet. “We lost to an offside goal and a beautiful free kick and we did not take our chances,” he told Sky Sports. “We are not talking about the title now, or Chelsea. We are just trying to win our games. We have seven games left they are all very important, there are 21 points and all we must do is win our games.” City came to Palace after a run of patchy form with only four wins in their last 13 matches in all competitions and were almost dealt an early blow in the second minute when Wilfried Zaha blasted his angled drive over.

SPORTS BRIEFING SPORTS BRIEFING Bolt coach Mills says sprinter headed for more gold, American Gatlin no headache

Man City manager Manuel Pellegrini talks to the club’s James Milner during the English Premier League match between Crystal Palace and Manchester City on Monday. Crystal Palace won the game 2-1. AFP City soon settled with David Silva and Sergio Aguero combining well up front, and Aguero came close to opening the scoring after 19 minutes but saw his shot cannon away oﬀ the foot of Julian Speroni’s right-hand post. The match also had echoes of Liverpool’s visit to Selhurst Park 11 months ago when they were leading 3-0 with 11 minutes to play, only for Palace to end their title hopes by drawing 3-

Palace manager Alan Pardew told Sky: “We showed diligence, character and resilience tonight. We had two quality moments for the goals -- it was a shame we did not have more oﬀensive moments tonight, but we will have other games when that happens.” -REUTERS

Usain Bolt is happy with his condition in the leadup to August’s world championships and will not be denied more sprint gold by American Justin Gatlin, according to his coach Glen Mills. “We take all competitors with a level of seriousness and I don’t see Gatlin as a joke, but the truth of the matter is Usain at his best doesn’t have much to worry about,” Mills told Reuters in an interview. Jamaican Bolt will bid for a third 100 metres gold and a fourth 200m gold in succession at the Aug. 22-30 meeting in Beijing. In Bolt’s absence, Gatlin dominated the Diamond League last season, ending the year as world leader in the 100 and 200m with personal best times of 9.77 and 19.68 seconds respectively. “It’s good for the sport and creates the kind of interest, but those kinds of things don’t affect us in any way because Usain and myself knows what we can get him to do when he’s fully fit and ready and that’s what we’re working to do,” said Mills, who has guided Bolt since 2005. “When we are ready and he’s peaked then let’s hear the shout, ‘I’m sure it will be Usain Bolt!’” The 100 and 200m world record holder, Bolt won both events at the 2008 and 2012 Olympics. Having taken time off last year, the 28-year-old told Reuters he was looking to set quick times this season. “I always try to wait until I run my first race (to set targets), but for me the aim is always to go to the championship and to defend my titles,” he said. “But I want to run really fast this season so I’m working on it.” Mills said Bolt had stepped up his preparation sincerunning 46.37 seconds over 400m on March 14 in Kingston. “He has made significant strides since the last time you saw him (in competition),” he said. Bolt, who will compete on wildcard entries in Beijing, was also satisfied with his condition as he gears up for his April 19 race in Rio de Janeiro, the host city for next year’s summer Usain Bolt. AFP Olympics.

Maste≥s a golf heaven whe≥e mobile phones a≥e p≥ohibited

olfers glide along as if walking on air and the crowd is polite and smiling at Augusta National Golf Club, where time stands still like a Norman Rockwell study of bygone days when the Masters rolls around. The deep green grass is perfectly groomed and azaleas are in bloom when the ﬁrst major championship of the year returns to the Georgia pines each April for a glorious reunion where more golf history will be made. “The Masters is a monument

to everything great in golf,” Jack Nicklaus, winner of a record six Masters, said of the tournament co-founded by legendary Georgia golfer Bobby Jones. Players are treated like royalty at the tournament founded in 1934 and where the focus is strictly on golf and tradition, while the memory of greats such as Sarazen, Hogan, Snead, Palmer, Nicklaus and Player and their exploits hang in the air. Fans, or patrons as they are known at Augusta, lucky enough to have se-

Tiger Woods walks onto a green during a practice round prior to the start of the 2015 Masters on Monday. AFP

cured tickets, or held them through the decades or had them willed down to them, feel part of a civilised family outing staged on a grand scale. The feeling is reinforced by throwback prices at concession stands, where a pimento cheese sandwich goes for $1.50, the ham and cheese, $2.50, a beer for $4 and chips or candy for $1. Former CBS sports president Neal Pilson, who negotiated 19 of the oneyear deals that has kept the Masters on the US TV network from 1956 to the

present day, calls it “the most unique event in American sports.” Green is the colour of the Masters, from the paper cups for soft drinks and beer, to the plastic wrapping of the sandwiches, to the jackets worn by members of the exclusive club and draped over the shoulders of the latest champion. Cell phones, beepers and other electronic devices are prohibited and grounds for dismissal. -REUTERS

BUSINESS DAILY | Wednesday April 8, 2015

MARK TO MARKET MARKET ANALYSIS With Rufus Mwanyasi

www.businessdailyafrica.com

The ≥isks and ≥ewa≥ds of looming Reits OUTLOOK With housing demand exceeding

supply, Reits should be a preferred solution

ermany’s public sector posted a total budget surplus in 2014 of 6.4 billion euros ($6.95 billion), helped by strong tax revenues in a recovering economy, compared with a deﬁcit of 7.2 billion the previous year, the Federal Statistics Oﬃce said yesterday. The surplus took into account provisional quarterly results at federal, state and municipal level plus the social security system.

ince touching an all-time high of struments. The need to “lock-in” prices Sh27 last September, the Nairobi for proper planning and trading should Securities Exchange (NSE) has come naturally for the vast agricultural base in the country. Furthermore, the so far shaved off a third of its value as transformative nature of commodispeculators piled up on the sell side. ties exchanges could serve as motivaYear-to-date price movement has remained inside a tight range as expection. Take for instance, the Ethiopian tations of the capital gains tax made Commodities Exchange (ECX) which started in 2008, now boasts an indirect the stock unattractive. reach to over 2.4 million farmers and Despite reporting a 16.5 per cent a membership of 450 members and jump in earnings before tax and a 32 per cent rise in total income in a recent 7,800 clients (of which 12 per cent are release of its last year’s performance, farmer cooperative unions). price has remained Similarly, the Equity Derivatives Marunmoved. This raises The set-up of ket, formally SAFEX, a bunch of questions. Af≥ica Exchange in South Africa has Is the market forecasting a lacklustre year in had great success and Holdings and Eleni terms of market activity is estimated some 20 LLC poses a se≥ious or is it simply discountper cent of commercial th≥eat fo≥ the ing planned initiativesfarmers in the country de≥ivatives... derivatives market and use it for hedging purreal estate investment poses. White maize, trusts (Reits). its flagship contract, The answer is unconstitutes the largest known. However, much as the former contract, accounting for some 40 per could be right (long-term turnover cent of trading value. I do not see why ratios stand below 10 per cent comNSE cannot achieve the same level of pared to 120 per cent in developed success. markets such as United States and in Second, the Reits market should other emerging markets such as India find success as well. With the annual which boasts turnover ratios of over 50 demand for housing in the country per cent) I breakdown the later with the outstripping supply by as much as assumption that the market is wrong 150,000 units, Reits are the quickest in its view. option to bridge this gap. Ernst and First, I believe the much-awaited Young’s Global Perspectives: 2013 Rederivatives market will succeed based its report says the global Reits induson the inherent need for hedging intry has been a major participant in

16 states

A block of apartments under construction. Kenya’s housing demand stands at 150,000 units. FILE transaction markets in the last three years. Real Capital Analytics (RCA) estimates Reits accounted for 14 per cent of transactions by volume in 2012. In the past 15-20 years, global returns in this sector have outperformed the broader markets. Three-year total returns ending 2012 stand at an impressive 38.6 per cent. Moreover, history shows that Reits have eventually proven to be popular with investors who come to view stocks as too risky and bonds as not having enough yields. Finally in conclusion, I strongly believe the inherent demand for the two markets holds a long-term potential for the NSE. Nonetheless, investors should proceed with caution since emerging

competition (rival exchanges are being set up in the region) could stiﬂe future competitiveness. The set-up of Africa Exchange Holdings and Eleni LLC poses a serious threat for the derivatives exchange. On Reits, a rise in interest rates would make their returns comparatively less attractive and subsequently markets may face selling pressure as Reits borrowing costs increase. Therefore existing and prospective Reits managers will need to structure units that can oﬀer attractive yields to investors. With this market guide, I hope investors will begin to view the stock with a fresh pair of eyes. Mr Mwanyasi is investment manager at African Asset Management.

GLOBAL MARKET WATCH DJ INDU 17880.85 117.61

FTSE 100 3226.08 46.20

XETRA DAX 12086.23 118.84

CAC 40 5140.86 66.72

FTSE MIB 23614.39 305.86

SMI PR 9220.59 89.99

2,389.54

2,420.84

36,341,100

35,556,200

EQUITY TURNOVER IN SH

775,509,612

979,079,325

1,821,500,000

1,011,900,000

TOTAL DEALS (EQUITY)

1,625

1,702

5,179.76

5,196.86

NSE ALL SHARE INDEX

171.15

173.39

FTSE NSE KENYA 15 INDEX

231.27

FTSE NSE KENYA 25 INDEX

231.52

NSE 20 SHARE INDEX

FTSE NSE KENYA BOND INDEX FTSE ASEA PAN AFRICAN INDEX

HANG SENG 25275.64 192.89

NIKKEI 225 19640.54 242.56

ALL ORD. 5893.20 23.46

SSE COMP 3960.98 97.05

S&P SENSEX 28516.59 12.13

HE SAID

TOTAL SHARES TRADED

TOTAL DEALS (BONDS)

International pressure This has put Europe’s biggest economy under international pressure to spend more to help revive a moribund global economy. Last month the cabinet approved plans to boost spending by 15 billion euros over the coming four years. -REUTERS

$: 92.69 €: 100.23 £: 138.22

TSh USh SAR

19.92 32.14 7.86

FIND US ON FACE BOOK & TWITTER LAST

BONDS TURNOVER

The federal government received 2.3 billion euros more than it spent and the 16 states were 1.6 billion euros in the black. The social security system posted a surplus of 3 billion euros. However, local authorities recorded a deﬁcit of 0.7 billion euros. Berlin, which has preached budget discipline to its euro zone partners, balanced its federal budget for the ﬁrst time in almost half a century last year.

CURRENCY RATES

Market Activity MARKET CAP IN SH BN

Ge≥many posts public secto≥ su≥plus of $6.95 billion in 2014

92.39

1,234.76

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

“Values are not just words, values are what we live by. They’re about the causes that we champion and the people we ﬁght for.” - John Kerry United States Secretary of State

businessdailyafrica BD_Africa