Business daily apr 9th 2015 by HABA KWA HABA

Bitange Ndemo

Technology can help us tackle terrorism Page 10

Ideas & Debate

Life

More lessons on public, private sector engagement

Garissa offers chance to confront biases

Page 9

Page 27

THURSDAY, APRIL 9, 2015

NO. 2070

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

Kenya’s poo≥ households in child-bea≥ing ≥at ≥ace Survey ﬁnds that they continue to have twice as many children as rich counterparts

Trends in total fertility rate, 1978-2014* *Data from 2003 and later are nationally representative, while data before 2003 exclude North Eastern region and several northern districts in the Eastern and Rift Valley regions.

BY GEORGE OMONDI

Kenya’s poor rural households have deﬁed the well-oiled birth control campaigns to retain their position as drivers of the country’s rapid population growth, a newly released demographic report says. On average, a rural woman has nearly twice the number of

children as her urban counterpart while the poorest family in Kenya today has three times as many children as a rich one, according to the Kenya Demographic and Health Survey (KDHS) report that was released yesterday. The survey, conducted by the Kenya National Bureau of Statistics (KNBS), however shows SURVEY, Page4»

SOURCE: KHS

MOURNING

CBK f≥eezes accounts of te≥≥o≥ funde≥s

KTDA sues watchdog over tea price probe The Kenya Tea Development Agency (KTDA) has sued the competition watchdog over a damning report indicating prevalence of cartels and price manipulation at the tea auction that cut farmers’ earnings. Page 5»

Wrigley ups stake with Sh5.8bn gum plant Multinational chewing gum manufacturer Wrigley Company has broken ground for a new Sh5.8 billion factory in Mavoko as it aims to double its production capacity and cement its leading position in the market. Page 7»

New Microsoft portal links SMEs to experts Access to professional services such as accounting, legal, human resource and marketing are some of the challenges that stifle growth of start-ups and small and medium-sized enterprises (SMEs) in Kenya. Page 15»

KQ stock dips as airline ﬂies into turbulent times Kenya Airways has shed 30pc over the past two months reverting to a Sh7.75 low on negative corporate reports, erasing price gains made between November last year and February 2015.

BY ALLAN ODHIAMBO AND OUMA WANZALA

Kenya has suspended the licences of 13 Somalia cash transfer ﬁrms and is preparing to freeze the bank accounts of dozens of individuals, NGOs and travel companies as it tightens the noose on suspected sympathisers of the Al-Shabaab terror group that killed 148 people in a deadly attack at Garissa University College. Inspector- General of Police Joseph Boinett on Tuesday published a special notice in the Kenya Gazette containing the names of the 85 entities suspected to have links with the terrorist group. The document showed that hotel and transport companies, as well as Muslim clerics and human rights organisations, risked having their bank accounts frozen. Somalis around the world rely heavily FROZEN, Page 4» on the informal

BRIEFING

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NEWS INDEPTH Developers cash in on rising demand for parking spaces Pages 12-13 »

First Lady Margaret Kenyatta (centre), Kenya Red Cross boss Abbas Gullet (in red jacket) and Ministry of Education principal secretary Belio Kipsang (right) enter Chiromo Mortuary yesterday to witness the body identiﬁcation process of Garissa University College students killed in a terrorist attack last week. See also page 2 JEFF ANGOTE

NAIROBI

BUSINESS DAILY | Thursday April 9, 2015

TOP NEWS

Kenya ≥u≥al bi≥th ≥ates defy family planning d≥ive »From Page 1

that the country’s birth lions of shillings in tax and donor funds rate has dropped from 4.6 children per to promote family planning through a family five years ago to 3.9 by end of string of campaigns in the mass media 2014 — mainly driven by a decline in in the past five years. the number of children in rich and urThe rural and poor households are ban families. likely to be isolated further in the wake The KNBS said the survey, which of a recent government directive to its covered 40,300 households across the departments and agencies to restrict 47 counties, found that urban house- advertisement to online platforms. holds on average raise three children While the number of Internet users compared to nearly five by their rural in Kenya grew to 26.1 million or 64.3 counterparts. per 100 citizens by October to DecemThe poorest families are, ber 2014, according to data however, struggling with prepared by the Communication Authority of Kenya, high level of dependency, I hope we all each having as many as sevthe users are mostly urban ag≥ee with us en children (fertility rate of and affluent. 6.5) compared to just three that it is time fo≥ “I’m looking forward (fertility rate of 2.8) for rich to presenting the finding smalle≥ families families. to governors,” said Director of Medical Services The statistics cast doubt NICHOLAS MURAGURI on the effectiveness of birth Nicholas Muraguri during DIRECTOR OF MEDICAL SERVICES control measures that the the launch of the sixth ediauthorities have been ustion of KDHS in Nairobi. “I ing to try to bring population growth hope we all agree with us that it is time rate down to three per cent or 1.5 mil- for smaller families.” lion births annually. High birth rate is With an average size of eight people among the factors identified as slowing per household, Wajir tops the list of coundown Kenya’s economic take-off. ties with big families. The combination Besides its stress on household of cultural practices among the mainly incomes, a large number of children pastoralist communities of West Pokot compels the government to allocate and Turkana have kept family sizes high substantial amounts of resources to the at an average of seven children each. social sector to run schools and primary Families in Kajiado, Migori, Homa health centres at the expense of develop- Bay, Bungoma, Samburu, Trans Nzoia, ment spending. Mandera, Garissa and Tana River have The Ministry of Health has spent bil- at least five children each, according to

From left: US Ambassador to Kenya Robert Godec, Planning princial secretary Peter Mangiti and Health secretary James Macharia display copies of the 2014 Kenya Demographic and Health Survey report d uring its launch in Nairobi yesterday. ANTHONY OMUYA

the survey. By comparison, rich counties such as Kiambu, Nairobi, Murang’a, Kirinyaga, Nyeri and Nyandarua have no more

than three children each – lower than the national average rate of 3.9 births per woman. Nearly all the counties are grappling

with teenage pregnancies, led by those in Nyanza, Rift Valley and Coastal regions. Central and North Eastern region, which has strict religious norms, have the lowest number of teenage pregnancies. Health secretary James Macharia said the survey would inform the ministry’s 2015/16 spending plan. “We are going to use it not only to convince the Cabinet to support our 20142030 national health policy but also to push for more funding beginning with the budget for the next fiscal year,” Mr Macharia said. Aside from birth control, the KDHS report shows that the push for free education that former President Mwai Kibaki launched 12 years ago has had a knock-on effect on the number of births per woman. By end of last year —when the first beneficiaries of Kibaki’s free primary education campaign sat their Kenya Certificate of Secondary Education exam — women with at least secondary education had three children on average. By comparison, the survey shows, those without formal education had seven (birth rate of 6.5) children. Slightly more than 30 per cent of girls aged between 15 and 19 without education have started bearing children compared to only 12 per cent among the educated lot. The survey uncovered lowest use of contraceptives in counties where cultural practices still hold sway like Mandera (1.9 per cent), Wajir (2.3 per cent) and Garissa (5.5 per cent) and highest use of birth control measures in Kirinyaga (81 per cent), Makueni (80.3 per cent), Meru (78.2 per cent), Machakos (75 per cent), Kiambu and Tharaka-Nithi (74 per cent) and Nyeri (73.1 per cent). The rural-urban divide also widens when it comes to delivery as only half of births in rural areas benefit from skilled care compared to 82 per cent in towns.

State suspends licences of Somali money t≥ansfe≥ fi≥ms money transfer firms, known as “hawalas”, to do business and to send cash to relatives because of the almost nonexistent banking sector in Somalia. Somalia’s Central Bank governor Bashir Issa Ali confirmed that the Central Bank of Kenya had officially notified 13 Somali money transfer firms of the closure of their accounts even as he warned that the move would have a devastating impact on Kenya’s Somali community of one million people. “It’s going to hurt Somalis in Kenya more than Somalis in Somalia. The amount of money sent from abroad to Kenya is huge,” Reuters quoted Mr Ali as saying. Yesterday, Kenya Forex Bureaus Association CEO Antony Wachira said the licence of the money remittance providers (MRPs) had been suspended without notice and without being given an opportunity to defend themselves »From Page 1

Dahabshiil money transfer ﬁrm in Nairobi has been closed after a government directive. JENNIFER MUIRURI and had greatly inconvenienced their clients. “The regulator can conduct investigations while the MRPs are still in operation and therefore there is no reason for their immediate closure,” he said. Treasury principal secretary Kamau Thugge said yesterday investigations into the ﬁnancial activities of the suspected

entities and individuals were ongoing and that accounts of any individual or ﬁrm found aiding the Al-Shabaab would be frozen. Kenya’s move comes on the trail of a similar action by the UK and the US. Human rights groups have expressed concern that the drastic measures would leave thousands families in the war ravaged nation disadvantaged.

On February 6, 2015, US banks stopped money transfers to Somalia citing strict regulations set by the US Oﬃce of the Comptroller of Currency to curb money laundering and funding of terrorist organisations. Although major US banks stopped wiring money to Somalia years ago, California-based Merchant Bank continued doing so until recently when it decided to end the service to avoid potential penalties by regulatory agencies. A group of US Congress leaders in February protested the end of the remittances and demanded a meeting with the US government to develop a possible emergency plan to address the acute shortage of life saving money transmission services to Somalia, and to discuss how the US could move toward a sustainable, longer-term framework for facilitating lawful money transfers through transparent channels. “Decreasing remittances will exacerbate Somalia’s humanitarian situation.

Twenty-two aid organisations recently noted that about one-third of Somali families said they would not be able to aﬀord basic food, medicines and school fees without help from their relatives abroad,” the Congressional team said in a letter on February 7 following termination of remittance services to Somalia by Merchant Bank. The bank handled an estimated 80 per cent of the remittances from the US to Somalia. “Nearly all business startups in Somalia are funded by remittances, and with nearly three million Somalis already dependent on aid organisations, eliminating the ability to send money into Somalia could throw the country and its already vulnerable economy deeper into crisis,” the Congress leaders added. The end of bank money transfers, the only legal means for Somalis in the US to send money to needy families back home, has rattled many.

Thursday April 9, 2015 | BUSINESS DAILY

ECONOMY & POLITICS NEWS I REVIEWS I ANALYSIS

KTDA sues watchdog ove≥ tea p≥ice-ﬁxing p≥obe PLEA Agency wants competition authority

restrained from acting on punitive proposals gations made against it in the report. “Some KTDA officers were apThe Kenya Tea Development Agency proached with questionnaires which (KTDA) has sued the competition were filled out in answer to some spewatchdog over a damning report indi- cific questions and there was an assurcating prevalence of carance that the views communicated would be treated tels and price manipulation at the tea auction that with utmost confidentiality,” cut farmers’ earnings. says John Omanga, KTDA’s Some KTDA group secretary. The agency wants the office≥s we≥e KTDA, which represents High Court to quash the findings of the report that app≥oached with small scale farmers in Kenhighlighted the near mo- questionnai≥es... ya, filed the suit in fear of nopoly status of the tea punitive action from the JOHN OMANGA, KTDA agency, saying its ownCAK arising from the recSECRETARY ommendations made by the ership wards off possible Deloitte-prepared report. competition. KTDA says the Competition AuthorIt has asked the court to stop the ity of Kenya (CAK) tricked its officials competition watchdog from making into giving confidential information any decisions informed by the report. used to prepare a section of the report. The report indicates that KTDA lost The agency also claims it was not given focus and adopted unclear mandate to an opportunity to respond to many alle- the detriment of farmers. It also casts BY BRIAN WASUNA

East Africa Tea Trade Association stakeholders during a tea auction at Tea Trade Centre in Mombasa. FIE doubt on the business of the East African Tea Traders Association, which runs the weekly tea auction in Mombasa. Players at the Mombasa Tea Auction are accused of colluding to ﬁx prices and deny small-scale farmers their deserved earnings. Tea prices dropped to a sixyear record low last year. CAK accused various players, chief among them the KTDA, of manipulating the price of the highest tea grade, PF1, which is mainly

Low ea≥nings loom fo≥ tea fa≥me≥s as auction p≥ices fall BY GERALD ANDAE

Tea prices at the Mombasa auction have fallen by Sh19 a kilo in the last one week as buyers rush to release their stocks for fear of a decline in value in future, signalling low earnings for the farmers. A kilogramme of tea sold at $2.58 (Sh237) in the latest auction compared to $2.79 (Sh256) previously, coming as bad news to farmers who may have to contend with low bonus payment for a second year in a row. The ongoing rains are increasing the production, mainly in western Kenya, reversing the streak of good prices witnessed in the past three months. Harsh weather that had been witnessed from December last year aﬀected tea production across the country, raising the price of the beverage to a one-year high of $2.85 (Sh262) last month. Buyers argue that the rains that have started and the onset of summer this month in major export markets will increase

Drop A kilogramme of tea sold at Sh237 compared to Sh256 previously This may be second year in a row for low bonus payment

volumes and suppress the demand of tea at the auction, driving down the price. “Prices are likely to come down in the coming days as the demand of tea is likely to go down with the expected increase in volumes,” said Mr Peter Kimanga of the Global Tea and Commodities. Mr Kimanga noted that tea consumption is normally high during winter but the demand drops when summer starts as the intake of the beverage declines. Bad weather in tea growing zones had forced farmers to prune their crop at this time of the year even though the exercise is normally done in June. They had pruned in readiness for the rainy season. The low prices is coming at a time when statistics from the tea regulator indicates that the

exports grew marginally last year compared to the previous years. The government is in the process of establishing a commodity fund that will cushion tea farmers from ﬂuctuating prices. The State has contracted Jomo Kenyatta University of Agriculture and Technology to undertake a study and develop a model to guide the minimum price payable to smallholder farmers for green leaf delivered and also recommend a sustainable model and modalities for establishing a price stabilisation fund. The Ministry of Agriculture has said the study will take four months and the report is expected by the end of May. Tea farmers’ earnings dropped to Sh15.8 billion in bonus payment last year, which was the lowest in the past ﬁve years. Total earnings for the Kenya Tea Development Agency also decreased from Sh69.2 billion in 2013 to Sh52.9 billion in 2014, representing a 23 per cent decline.

produced by small-scale farmers. The weekly auction is the main outlet for Kenyan tea and was found to be in the hands of only a few buyers. Some regulations of the tea traders association were said to hinder competition. For instance, the number of brokers is capped at 12, the fee charged is ﬁxed at 0.5 per cent of the auction volumes while producers cannot become brokers, the report says as it takes issue

with near monopoly status of the tea agency, saying its ownership wards oﬀ possible competition. More than 14 years since the liberalisation of the industry, no new entity has been able to serve any of the 65 small-scale tea factories in Kenya. Yesterday, Competition Authority director-general Francis Wang’ombe said they are yet to be served suit papers, adding that the law mandates the authority to conduct market enquiry on uncompetitive behaviour. The tea agency reckons it has been accused unfairly. “I am aware that KTDA has been adversely mentioned in the report whose insinuations include that the agency has lost focus and adopted an unclear mandate to the detriment of farmers, and is guilty of many wrongs like abuse of a dominant position,” Mr Omanga added. Another report by the Tea Directorate published last year also accused KTDA of colluding with tea brokers and marketers to ﬁx green leaf prices. bwasuna@ke.nationmedia.com

PRESS STATEMENT

Clarification on media reports linking Britam Kenya to Bramer Bank Corporation and BAI Company (Mtius) Ltd. There has been enquiries on the relationship between British-American Investments Company (Kenya) Limited (Britam Kenya), Bramer Bank Corporation and BAI Company (Mtius) limited following the action of the Bank of Mauritius to revoke the banking license of Bramer Bank Corporation and the subsequent appointment of PwC by the Financial Services Commission as conservator to protect the interest of policy holders of BAI Company (Mtius) Limited. British-American Investments Company (Kenya) Limited (Britam) wishes to inform its investors, customers and the general public that: •

Britam (Kenya) is an independent legal entity separate from Bramer Bank Corporation and BAI Company (Mtius) Ltd (BAI).

•

Britam is a diversified financial services group listed in the Nairobi Securities Exchange with over 25,000 shareholders. One of Britam’s shareholders, British-American (Kenya) Holdings Limited that holds 23.34% stake, is related to BAI.

•

Bramer Bank Corporation is not a shareholder of Britam (Kenya).

•

There are common directorships between Britam, BAI and Bramer Bank Corporation. However, Britam is managed through an independent board of directors and management

•

There is no other relationship between Britam (Kenya) and BAI or Bramer Bank Corporation.

In this regard, we wish to reassure our investors, customers and the general public that there is no exposure to Britam in relation to the recent developments in Bramer Bank and BAI in Mauritius. Mr. Muthoga Ngera Director, Marketing & Corporate Affairs

Mrs. Nancy K. Kiruki Company Secretary

British-American Investments Company (Kenya) Limited (Britam) For more information please contact: Muthoga Ngera, Director, Marketing and Corporate Affairs on email mngera@britam.co.ke or visit http://www.britam.co.ke.

BUSINESS DAILY | Thursday April 9, 2015

ECONOMY & POLITICS COUNTY BUSINESS

Secu≥ity enfo≥cement setback as cou≥t ≥ules law unconstitutional BY ABIUD OCHIENG’

A section of a law that allows prosecutors to obtain orders to detain a person likely to commit a crime to keep the peace has been declared unconstitutional, dealing another setback to security laws. High Court Judge Mumbi Ngugi made the ﬁnding in a petition ﬁled by lawyer Boniface Masinde representing six people who were arrested in 2011 and 2013 at Wangige Market, Kiambu County, on suspicion that they were supporters of the Mungiki sect.

Justice Ngugi ruled that peace bond provisions are arbitrary and discriminatory, when weighed against the benchmarks set by the Constitution. “If one is suspected of having committed a speciﬁc crime, then by all means let him be arrested and charged in court in accordance with the law, with all the rights to which arrested or accused persons are entitled to,” said Judge Ngugi. The judge observed that the petitioners were ﬁrst arrested, kept in custody without being charged, then presented before a Court on the basis

The petitioners Anthony Mbuti, Robert Chege, Martin Weru, Douglas Kamau, GodfreyKahunguri and Patrick Kihuta had been arrested for being likely to commit a crime. that were suspected of being likely to commit a crime. The law requires that in cases where the police don’t have evidence, the person should be bonded to keep the peace. If he is unable to meet the terms of the

T≥easu≥y ≥eleases Sh1 billion owed to maize fa≥me≥s

bond, he is imprisoned for a term not exceeding three years. “How, one may ask, do the police determine who is likely to commit an oﬀence, and who should therefore be taken before a court to be bonded to keep the peace and be of good behaviour? Is it by one’s dress, their height or weight, their manner of walking, their hair?” Asked Judge Ngugi. The Attorney- General, Inspector General of Kenya Police and Director of Public Prosecutions, had defended the section saying that the intention behind the peace bond sections is to

prevent the commission of crimes. But Justice Ngugi said while the court fully appreciates the concern of the law enforcers when ﬁghting crime, the concerns raised by the petitioners were equally weighty. “The court cannot allow such oppressive laws to continue operating in the country when there is a constitutional dispensation under which Kenyans have set out very strong safeguards under Article 49 for persons who have been arrested on suspicion of having committed crimes,” Justice Ngugi said.

Investment confe≥ence

AGRICULTURE Move ends anxiety following

the Treasury’s failure to wire the money earlier BY GERALD ANDAE

The Treasury has released Sh1 billion owed to farmers by the National Cereals and Produce Board (NCPB) amid rising tension in the Rift Valley over the debts. Agriculture ministry Principal Secretary Sicily Kariuki yesterday said the board had received the funds, bringing to an end anxiety following the Treasury’s failure to wire the money after giving an undertaking a fortnight ago. “The Treasury released the funds on Tuesday and this will be used in paying farmers’ arrears,” said Ms Kariuki. Farmers, mainly in the Rift Valley, said they delayed planting because the money was supposed to buy farm inputs. The planting season started last week. “I rely on maize proceeds solely to get farm inputs, the delay in paying our dues has aﬀected my planting timetable,” said Frederick Muhorela, a farmer in Trans Nzoia. The delay comes at a time when maize seed prices have increased by 20 per cent, piling pressure on farmers already grappling with the high cost of production. A 10 kilogramme bag of maize seed is selling at Sh1,800, up from Sh1,500 in the last planting season while a 25 kilogramme bag goes for Sh4,500 from Sh3,750, the ﬁrst increase in 10 years. The board has been expecting the funds to pay farmers for the 452,518 bags it took on credit after exhausting the initial allocation of Sh2.7 billion. Tension has been building in the Rift Valley over the debt and the fact that NCPB had stopped buying maize from farmers, exposing them to middlemen. Middlemen have been taking advantage of farmers with pressing needs to buy

Lorries queue to deliver maize to the National Cereals and Produce Board, Eldoret depot in January. FILE a 90kg bag of maize at Sh1,500. NCPB was offering Sh2,300 per bag. Baringo Senator Gideon Moi challenged Deputy President William Ruto to convene an urgent meeting of all elected leaders from the Rift Valley and agricultural stakeholders to discuss the future of the sector, especially maize farming. The Agriculture ministry had requested for Sh1.9 billion from the Treasury under the second supplementary budget which is yet to be tabled in Parliament for approval. Of the Sh1.9 billion, Sh700 million was set for debt settlement with the balance being used to buy more grain. NCPB has so far paid for 1.4 million bags and taken 452,518 bags on credit. Farmers opted for the credit facility because the board was offering higher prices compared to middlemen. Low maize prices have come as a relief to consumers who are currently enjoying reduced flour prices. A two kilogramme packet is selling at Sh80 down from Sh120 last August. gandae@ke.nationmedia.com

Eldoret

Participants follow proceedings during the Nandi Investment Conference and Exhibition held at Kapsabet Showground yesterday. The three-day event ends tomorrow. JARED NYATAYA

Cou≥t declines to cancel bond fo≥ MP accused of ≥ape BY MAUREEN KAKAH

A Nairobi court yesterday declined to cancel the Sh100,000 bond granted to Imenti Central MP Gideon Mwiti, accused of rape, amid allegations that he was intimidating witnesses. Chief Magistrate Lucy Mbugua said that there was nothing on record to show that Mr Mwiti has interfered with evidence or intimidated witnesses after the day he was ﬁrst arraigned in court on April 2. “Prosecution said that at the time he was ﬁrst charged, there was a report about interfering with evidence but no application had been formally made then and that they were not

opposed to bond then. I ﬁnd that there is no information regarding this attempts after that date,” the chief magistrate ruled. The magistrate, however, warned that should the MP fail to appear in court after every two weeks as from April 21, the bond terms would be cancelled. “He is a free man now, but of course if he fails to appear in court after every two weeks as I have ordered, the ﬁrst thing this court would do is to cancel the bond,” she said. The chief magistrate also issued an order stopping the MP, his family or agents from contacting the victim or her relatives in any manner.

Mr Mwiti is out on a Sh100,000 bond. He is facing three charges of raping, intimidating and assaulting a woman in his Nairobi office. The MP is alleged to have committed the offences on March 21 at Tana Club on Woodvale Grove in Westlands, Nairobi. Mr Mwiti and his co-accused, Dr David Muchiri, yesterday appeared in court, where they were charged afresh after an amendment on the charge sheet was made to omit the victim’s full names. Mr Mwiti, denied the charges of rape, intimidation and assault while Dr Muchiri pleaded not guilty of aiding the MP to commit the offence of rape.

Thursday April 9, 2015 | BUSINESS DAILY

CORPORATE NEWS NEWS I REVIEWS I ANALYSIS

W≥igley ups stake with Sh5.8 billion chewing gum plant MANUFACTURING Company breaks ground

for facility in Mavoko, which is set to open in 2017 BY MUGAMBI MUTEGI AND NEVILLE OTUKI

Multinational chewing gum manufacturer Wrigley Company has broken ground for a new Sh5.8 billion factory in Mavoko as it aims to double its production capacity and cement its leading position in the market. The Chicago-based ﬁrm, which produces Big G, PK, Doublemint, Juicy Fruit and Orbit brands, says the new plant will be operational by April, 2017 and will see its annual output double to 7.84 billion pellets. Euromonitor International places

Wrigley East Africa as the market leader in Kenya’s chewing gum industry with a 75 per cent market share, a position it is now likely to defend or bolster once production at the new factory commences. “The upcoming factory will be double the capacity of our existing facility in Industrial Area,” Wanja Mwangi, Wrigley East Africa’s corporate aﬀairs manager told Business Daily, adding that the old factory will be shut upon commissioning of the new one. “This investment in an enhanced facility gives us the chance to diversify into other types of confectionaries besides chewing gum in the future.”

From left: Wrigley Global President Martin Radvan, Machakos Governor Alfred Mutua, Industrialisation secretary Adan Mohamed and US Ambassador Robert Godec look at a model of the Wrigley plant during the ground-breaking yesterday. COURTESY

The factory will increase competition in the market where Wrigley’s main competitors include Lotte Confectionery Company that has a 14 per cent share, according to Euromonitor. The international research firm classifies Kenafric industries in a different category from Wrigley, placing the family business as the market leader in the sugar confectionery industry with a 22

per cent market share. Kenafric, which is also in the stationery and footwear business, produces a wide range of confectioneries including chiclets, toffees, chewing gum and lollipops. The company produces over 100 tonnes of hard boiled sweets, toﬀees, bubble and chewing gum daily. The ﬁrm, whose main chewing gum brand is called Fresh, in 2012 unveiled a Sh1 billion factory that

was to see them upscale their production, including increasing exports. Euromonitor says Kenya’s chewing gum industry is set to experience growth, noting that sugar-free gums will in particular beneﬁt from an increasingly health -conscious youth. “The higher demand for gum expected in Kenya is set to derive from higher numbers of working young adults who regard gum as a functional product which not only freshens the breath but also helps to improve overall concentration,” the research ﬁrm says. Wrigley, a subsidiary of Virginiabased Mars, opened its maiden factory in Kenya in 1972. It is the multinational’s only manufacturing plant in Africa, serving Uganda, Tanzania, Rwanda, Burundi, Ethiopia and South Sudan. The company says the plant, which is being built on a 20-acre piece of land, is in response to growing opportunities in these markets. “Our choice of Kenya for this investment is highly intentional – Kenya has been a great host to us for the past four decades and we know it is a nation with great potential as the foremost economic and business hub in east and central Africa,” Wrigley Global President Martin Radvan said.

BUSINESS DAILY | Thursday April 9, 2015

CORPORATE NEWS

Mau≥itius takes ove≥ B≥itam di≥ecto≥’s bank afte≥ Sh63.7 billion Ponzi scandal SCAM Government

set to create new ﬁrm to take over Dawood Rawat’s Bramer BY VICTOR JUMA

The Mauritius government was yesterday getting ready to take over Britam’s top owner Dawood Rawat’s bank whose license was withdrawn for running a Ponzi scheme. Mauritius’ Finance minister Vishnu Lutchmeenaraidoo told news agencies Tuesday that the state would assume ownership of the Bramer Banking Corporation (BBCL) by end of the week. The move comes after the island nation’s authorities appointed two PricewaterhouseCoopers (PwC) oﬃcials as conservators of British American Insurance Co (Mtius), a subsidiary of Mr Rawat’s conglomerate Seaton Investment. The decision to temporarily place the management of BAI Co under government appointees was made to “to safeguard the interests of poli-

cyholders”, signalling fears that the insurance business could be exposed to the troubled Bramer Banking Corporation (BBCL). Bramer lost its licence last week after an on-site inspection found evidence that it had been running a Sh63.7 billion Ponzi scheme. A Ponzi is a scam where investors are promised or paid unrealistic returns from cash paid in by new members, necessitating an endless recruitment drive that eventually proves unsustainable. The bank resumed operations yesterday, in receivership, after the Bank of Mauritius granted it a new licence to provide restricted banking services including cash withdrawals capped at Sh128,000 per day. A new company, the National Commercial Bank, has been created to take over Bramer. The new entity’s operating licence isto be issued by the end of this week. The Ponzi revelation is expected to shake Mr Rawat’s business empire, which only recently tried to raise Rs350 million (Sh885.5 million) from British American Investment Co (Mtius) to save the bank. The Bank of Mauritius also noted that an article appearing in the press in Mauritius on April 4 had alleged

Mr Dawood Rawat, the Britam director whose bank has been linked to a Ponzi scheme. FILE that Mr Rawat had taken steps to transfer Rs1.4 billion (Sh3.5 billion) from Kenya to the troubled bank. The central bank, however, said that such a commitment was never communicated to it. Mr Rawat is a director and the single largest investor in Britam which has issued a statement saying it has no exposure to the Mauritian’s businesses, noting that only common directorships and ownership exist. Britam’s CEO Benson Wairegi

High p≥emiums lift Libe≥ty insu≥ance ea≥nings to Sh1.14bn BY VICTOR JUMA

Insurance firm Liberty Kenya posted a 3.8 per cent rise in net profit for the year ended December 2014, helped by increased premiums. The insurer’s net profit in the period stood at Sh1.14 billion compared to Sh1.1 billion the year before. This came as premiums grew 8.6 per cent to Sh8 billion, with investment income increasing 12.8 per cent to Sh2.9 billion. Claims rose 12.3 per cent to Sh3.4 billion as operating expenses expanded by the largest margin at 17.1 per cent to Sh3.5 billion. The insurance firm said the higher expenses were driven by investment in technology and distribution, noting that these capital expenditures are expected to pay off in the coming years. “A significant investment

was made in these areas in 2014 and although the resulting costs had a negative impact on profitability, we believe that significant benefits will be realised from these initiatives in the coming years,” the company said in a statement. Liberty’s board has recommended a dividend payout of Sh0.5 per share, half of what it paid out on the 2013 results. The lower dividend signals the company’s preference to preserve cash for future expansion. The dividend paid on the 2013 earnings was mostly in the form of new shares, a process technically referred to as scrip dividend. The unique dividend enabled the insurer to retain Sh940 million or 85 per cent of the Sh1.1 billion net profit earned in the year ended December 2013.

is a director of the collapsed bank where Mr Rawat is also a board member. The nationalised entity is expected to have a new board of directors. Mr Rawat holds a 20.3 per cent interest in Britam, making him the single largest investor in the Nairobi Securities Exchange-listed firm. He is followed by five Kenyan billionaire investors, who are his longterm co-investors in the firm including Peter Munga and Jimnah Mbaru who have 16.9 per cent and 10.2 per cent stakes respectively. Besides his shareholding, Mr Rawat has in recent years moved to firm his grip on Britam through his own directorship and that of his allies. He joined Britam’s board in late 2013 alongside his nephew Moussa Rawat as part of changes in directorships across his conglomerate. Mr Rawat was forced to cede a third of his stake in Britam to local investors in 1984 to comply with a government directive that Kenyans needed to have significant ownership in the company. In 2006, Kenyan investors acquired an additional 30 per cent stake from BAI.

BY OKUTTAH MARK

A local cloud data storage firm Angani Limited is betting on hourly pricing of its services to get a piece of a market that is still largely untapped. With cloud computing, applications and files are stored on a large, centralised supercomputer or network where end-users can access the information using less complex machines over the Internet. It also provides an easy to use, cost efficient, flexible, dynamic and secure environment for modern businesses. Unlike other firms that are either billing per month or annually, Angani solutions are charged at an hourly rate, ranging from Sh1.99 to Sh79.99 per hour depending on data size and whether the traffic is local or international. Founded in June 2013, Angani now joins the list of firms that have shown interest in this sector including IBM, Microsoft, Safaricom and SEACOM through its subsidiary Pamoja Services.

vjuma@ke.nationmedia.com

Pa≥tne≥ship launched

Nairobi

Cloud data sto≥age ﬁ≥m bets on p≥icing to woo use≥s

Shamira Dostmohamed (left), acting Equatorial Commercial Bank MD, and Post Ofﬁce Savings Bank acting MD Anne Karanja during the launch of an agency partnership yesterday. SALATON NJAU

Virtualising Cloud computing is currently gaining traction among corporate organisations and government that want to cut down on their capital and operational expenses. Mr Phares Kariuki, the CEO of Angani said while IT infrastructure is necessary to keep companies functioning, it does not typically add any direct value to products or services. “This is the problem that Angani seeks to solve. By buying infrastructure in bulk, virtualising it and proceeding to lease it out to you at a reduced rate, we take away the expense and headache of having to maintain your own IT infrastructure in-house,” Mr Kariuki said. He added that his firm has adopted the pay- as- you- go model which allows companies and individuals to only pay for infrastructure they use and also gives them flexibility to increase or reduce computing capacity instantly depending on need. In Kenya the demand for cloud computing technology has been made possible by investment in fibre optic cables across the country. The public sector is emerging as the key driver to the adoption of cloud technology, with the government automating most of its agencies as it seeks to offer services online such as, KRA’s iTax and Treasury’s IFMIS project and the Huduma Centres.

Thursday April 9, 2015 | BUSINESS DAILY

IDEAS & DEBATE OPINIONS I REVIEWS I ANALYSIS

DEVELOPMENT Businesspeople must strive to work with and not against the government

Mo≥e lessons on public, p≥ivate secto≥ engagement

must work with and not against the government. Most of what they do is going to be far more effective if it is indeed away from the public glare. But the challenge with such an approach is that much of it goes unrecognised, and even where the private sector agenda is advanced MIKE ELDON as a direct result of quiet negotiation it’s too easy to assume it was not a fachursday, April 2, 2015 was a tor. It’s the lot of unsung heroes on both sides, and one they willingly accept terrible day for Kenya. It will — given that the macho alternative, forever be associated with the devastating attack on Garissa Univerwhile offering instant gratification, sity in which so many innocent people is actually quite unlikely to deliver died. But for me and others who had the goods. been invited to lunch at State House In some neighbouring countries, that day for the 4th President’s Round where the atmosphere is less liberal, Table with the private sector it was a the private sector’s attempts to speak out have, with some justification, seen day of mixed emotions. On the one hand we were still learning of the horthem branded as supporters of the oprors of the latest Al-Shabaab outrage, position as a result of which they have but at the same time we were inspired been shunned by government. How by the constructive collaboration bethe private sector should behave is tween the public and the private and a delicate matter. And as I have said by the decisiveness of before, there is a place the country’s CEO. for “good-cop-badEven if the terrorists cop” strategies. The Which selfhad not chosen this day hard-ball approach of ≥especting on which to launch their much of civil society ≥epo≥te≥ o≥ unspeakable attack, the offers a good compleedito≥ would be media would still have ment to the inevitably given negligible space to softer touch of busiinte≥ested in such what was being agreed ness, and of course peace-lovebetween the governcircumstances vary and-unity ment and the private widely, over time and outpou≥ings? sector. After all, it was across situations. Is KEPSA always on just lovey-dovey stuff, target in how it selects about working together harmoniously to build a better Kenthe priority issues for its National Busiya. Which self-respecting reporter or ness Agenda? I for one have no problems with its choices, and if significant editor would be interested in such progress in creating an enabling envipeace-love-and-unity outpourings ronment for business is to be made, it when there’s so much juicy material must be very selective. At this Presiaround on corruption, political manoeuvring, crime and suchlike? dential Round Table the focus was on integrity, the improvement of governI should add that some observers aren’t happy about the private sector’s ment processes and the further spread “cosyness” with the high and mighty. of e-government. Surely one can’t argue with such a trio. They should be much tougher, such critics feel, citing areas where progress In his remarks, KEPSA chairman should be made but is not. Vimal Shah praised the responsiveness of the government, delighted that so I have written about this dilemma before, and I am not shy to repeat that much had been so swiftly agreed in the being polite and respectful is not a sin, morning meeting that had preceded and that it is not necessarily a sign of the lunch. And when CS for Industrialisation and Enterprise Development weakness. Of course it is guaranteed to attract Adan Mohamed and Deputy President negligible media coverage if any, but William Ruto followed him, they too I firmly believe that businesspeople appreciated the way the government

Other Voices David Cameron British PM

Peter Ford (Guardian) Foreign policy is virtually absent from the election campaign. But if British Prime Minister David Cameron had had his way, we could have been embroiled by now – more than we already are – in yet another Middle East war. As it is, his Syria policy has still backﬁred, contributing to the rise of jihadism in our own back yard. Cameron should not be let off the hook for supporting the armed opposition in Syria.

Barack Obama US President

President Uhuru Kenyatta joins other delegates at the launch of the Kenya International Investment Conference 2014 in Nairobi in November. The State and the private sector should work together to promote enterprise. FILE and the private sector were working together for the good of the country. William Ruto made an important point when he emphasised the need to meet continuously and frequently. For when people keep a distance from one another it is too easy for negative stereotypes to be reinforced, and for the natural mistrust between the sectors to be perpetuated. Now to the climax of the meeting, to the address of the President, who put on a stunningly impressive performance. He started by stating that he was very pleased with the progress being made as a result of the Round Tables. “I wanted this government to be business-friendly, to help this country be competitive and to promote prosperity and the creation of jobs,” he said, while admitting that they have not moved at the pace he would have wanted. “We must up the pace and conclude issues. We must quickly overcome legislative and bureaucratic hurdles, and it’s more important that we do so now, as we worry about increasing competition from neighbouring countries.” The President then made a ﬁne managerial point: “We are not meeting here to sort out minor details. Some of what we discussed this morning should have been handled at the Ministerial Stakeholder Fora, which should be

meeting monthly and be action-oriented and deliver results.” The President added that he had instructed his Chief of Staff to give him regular briefs of these meetings, including the minutes. “We are here to look at strategic competitiveness issues, at what we need to do to be the regional hub – not to talk about VAT refunds or Import Declaration Form problems. The ministers have full authority to do their jobs,” he reminded them, his impatience with indecisiveness and pettiness obvious. What an execution-focused leader! What a contrast to how he once described his predecessor as a “hands off, eyes off president” at a lunch of the American Chamber of Commerce. Here’s how the President concluded: “We must work to narrow the gap and operate as a seamless team, with no differences and with a single, clearminded objective. It is why I apologised recently for past injustices, because it’s not good to be looking in the rear-view mirror – the view through the front windscreen is much broader. The past is to learn from, not to live in.” Well said, Mr President. And I hope those charged with rapid response to security challenges take note. mike.eldon@depotkenya.org

David Ignatius (Washington Post) There’s a buoyant sense at the White House this week — a feeling that a much-embattled President Obama has achieved the goal he set in January 2009 of engaging Iran on the basis of “mutual interest and mutual respect.” But like the dog who catches the car he’s been chasing, Obama must now worry about what to do next. The ﬁrst priority is pinning down the deal that Secretary of State John F. Kerry reached last week. Benjamin Netanyahu Israeli Premier

Jeffrey Goldberg (The Atlantic) If Benjamin Netanyahu would only move away from his maximalist goal of raising the deal and think instead about shaping the deal in ways that could meet many of Israel’s needs, he would have a much greater chance of success. In order to do this, he needs a domestic partner. He himself has close to zero credibility in the White House, which sees him as a political adversary on par with John Boehner. It seems fairly obvious that if Netanyahu indeed believes that Iran poses a unique threat to Israel’s survival,

BUSINESS DAILY | Thursday April 9, 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

Financial agencies must combat te≥≥o≥ funding

f truth be told, we have taken a lot of liberties with our security. From allowing foreigners to abuse the Kenyan migration documents and national identity card, we have readily exposed the citizenry to security threats. And it is not like we are helpless. Reports that the government has frozen the accounts of individuals and NGOs suspected to be linked to terrorism though belated should be supported. As early as during the 1998 terrorist attack on Nairobi, NGOs were identiﬁed as conduits of terror cash. Unsurprisingly, the sector and its foreign supporters are quick to chant freedom and democracy as soon as measures meant to make their funding more transparent are mooted. Admittedly, not all government scrutiny is well meaning. In fact malice and politics might get in the way. But if in the process of trying to thwart deaths of citizen we do make some mistakes, it is better than burying our school children as we are doing after the Garissa attacks that led to the loss of over 140 students. And if the mistakes result in some people not enriching themselves, as a nation we would have nothing much to mourn about. Central Bank of Kenya, Kenya Revenue Authority and the Ethics and Anti-Corruption Commission should know that their mandates

extend beyond the narrow realms of normal operations. They are supposed to watch anyone moving cash beneath the official radar. But do they do it? For years now, we have witnessed national institutions like Eldoret International Airport being used by smugglers to land tonnes of ill-documented goods from the Middle East. It has particularly been popular with Somali traders operating in Eastleigh—at one point forcing the government to close it down. Political pressure though quickly came to bear and the airport was opened without the public ever being told whether issues were fully addressed. Again, during the Kibaki era, we saw billions flowing into the country’s real estate sector, incidentally at a time piracy in Somalia was at its peak. An attempt to do an audit of the properties was quickly shelved. In view of the damage terrorists are causing in our country, it is time we worried less about political correctness and more about saving lives and the economy. We must particularly look at licensing of financial institutions including banks and forex bureaus without succumbing to pressure, some from some known beneficiaries of anarchy. We need tight control of the financial flows and we should not owe anyone an apology.

Monito≥ t≥aﬃc ﬂow measu≥es

he Nairobi county government’s effort to improve traffic flow through the city’s main artery of Mombasa Road and Uhuru Highway is commendable. It is the clearest show that the city authorities are alive to the daily challenges that residents face and whose solutions lie in governance. Recent estimates have shown that on average, Nairobi residents spend four hours a day in traffic, a cost that amounts to billions of shillings a year. It is also a well-known fact that most of the congestion is caused by logjams at round-abouts on intersections. City Hall’s short-term solution to the problem, which was executed during the Easter weekend, has been the partial blockage of some

round-abouts -- an action that left motorists in total confusion on Monday. Motorists on Mombasa Road spend more than four hours driving over a distance that takes 15 minutes without traﬃc. Part of the problem was brought about by motorists who could not simply move once they found their usual paths to work blocked. Indiscipline as exhibited by overlapping motorists was also rampant, causing snarlups that took hours to clear. The situation greatly improved on Wednesday, oﬀering hope that the solution could work with a little more discipline among motorists . City Hall must, however, remain alive to the fact that the action needs close monitoring with a view to reversing it if necessary.

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

“I need to see a doctor... I’m no longer able to sleep in meetings...”

Technology can help us tackle te≥≥o≥ism BITANGE NDEMO TECHNOLOGY

omalia-based terrorist group AlShabaab has once again robbed us of 147 lives. It is painful to accept this loss, but as former United States Vice President, Hubert Humphrey, once said, “It is not what they take away from you that counts. It’s what you do with what you have left.” Our task now is to do everything possible to secure the lives of Kenyans while we pursue these delinquents without giving up. I want to make the case that in order to secure citizens, we must invest in technology. First, we need to register all Kenyans using biometric identifiers, which are not only helpful in identifying criminals, but also in reducing the time it takes to identify victims. Biometric data are the biological, distinctive, and measurable characteristics used to label and describe individuals. A comprehensive biometric-based identification system is complicated and might take time to implement. We can greatly enhance security by embarking on a phased introduction, starting with the physiological category of biometric identification and later building on other categories such as behavioural biometric as we advance the technology. Physiological characteristics relate to the shape of the body. Examples include, but are not limited to, fingerprint, palm veins, face recognition, DNA, palm print, hand geometry, iris recognition, retina and body odour/scent. Behavioural characteristics relate to the pattern of behaviour of a person, including but not limited to: voice, gait and their

rhythms in undertaking various tasks. Biometric data can be used in several applications including civil registration, drivers’ licenses, and student identification in all campuses and other forms of identification, leading to a single identification system in Kenya. For this to function effectively, we must build a robust communication network to help with the verification process. This will be complemented by strict requirements for all hotels and guest houses to conduct security checks of all guests and bear responsibility for any unaccounted guest. This is what happens in other countries including our neighbour, Ethiopia. To compliment these technology solutions, we need to map the entire country and create a proper addressing system for every household. Any guest coming to Kenya must provide the name and physical address of the persons they are visiting. Such requirement would be fed into an operational Nyumba Kumi database for ease in verification. An addressing system can even pay for itself since many organizations will leverage on the technology to run their enterprises. We cannot at this time and age hope to fight rag tag armies using archaic technologies. Even these terror groups use social media for their communications. It is the analytics of these social media content that can reveal an impending attack. We therefore must begin to develop capacity in big data analytics and begin to mine the social media for clues that can help us secure our people. There are also multiple satellite imagery that we can subscribe to in order to help us obtain data on movements along the border. The idea of launching our own security satellite is no longer farfetched. We also must responsibly build surveillance capability to understand different languages and to build applica-

VIEWS FROM ABROAD

tions that can crawl through the internet to discern enemy intentions. Such smart technologies would eventually enable us to minimise unnecessary attacks on citizens. Since it is an open secret that some of these terrorists have acquired Kenyan citizenship through corruption and political networks, there is need to subject all recently registered citizens and new identity card holders through a genealogical test to weed out those who may have illegally acquired citizenship. The Immigration Department should also start publishing lists of all new IDs issued and new citizenship applicants. This should be part of the open data initiatives that could expose hidden agenda in registration of persons. Lastly, we must thoroughly analyse all our vulnerabilities and start to address each of them comprehensively. There is need to gather constant data on people movement along the border through drones and analyse the data comprehensively by accounting for every person who gets through the border. Use of thermal imaging cameras to detect weapons may help identify and manage hotels that accommodate criminals knowingly or unknowingly. This should be accompanied with a legislation to conﬁscate properties that harbour criminals. This is what happens in many democratic countries to deter citizens from collaborating with criminals to cause harm. . Former US President, Henry Ford once said, “If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability.” Let us build the knowledge, experience and ability to secure our country. The writer is an associate professor at University of Nairobi’s Business School.

Opinions f≥om a≥ound the wo≥ld

Together we can defeat terrorism

Deal with Kabwe lead poisoning

Buses no solution for commuters

Kenya was again last week the victim of an Al-Shabaab terrorist attack that which killed 148 innocent university students and security personnel. As the THE NEW TIMES KIGALI events were unfolding, here in Kigali, Kenya, Uganda and Rwanda were putting the ﬁnal touches on guidelines of cooperation for peace support operations. This region is rife with destabilising forces capable of creating harm. So, intelligence sharing is not an end to itself; rapid response to a given situation is.

Lead pollution is one of the major causes of environmental degradation in Zambia. Kabwe is one of the top 10 most polluted towns in the world. However, TIMES OF ZAMBIA LUSAKA little is being done to mitigate effects of lead poisoning left by closed copper mines. Lead poisoning is killing many residents of Kabwe silently. What is the Zambia Environment Management Agency (Zema) doing to mitigate the impact of this poisoning? Zema should put in place serious programmes to ﬁght lead poisoning.

Pioneer Easy Bus Company buses are set to return to the city’s roads by April 15, according to the company’s corporate and legal affairs manager. Naturally, for DAILY MONITOR KAMPALA the stressed daily city commuters, this announcement is welcome news even though they are fully aware that there have been such announcements before complete with datelines and nothing has happened. The government should urgently plan a proper public transport system for Kampala and the rest of the country.

Thursday April 9, 2015 | BUSINESS DAILY

EDITORIAL & OPINION

How to p≥event anothe≥ Ge≥manwings disaste≥ CHRISTOPHER AND JENNIFER GANDIN LE SUICIDES

ith the revelation that Germanwings pilot Andreas Lubitz had a history of mental illness, and in fact experienced “suicidal tendencies,” there will undoubtedly be calls for increased psychological testing of pilots, bus drivers, and other professionals whose jobs involve safeguarding passengers. While this might seem like a natural and necessary next step, in order for increased testing to actually save lives, it needs to happen in a way that doesn’t increase stigma around mental illness — and make

people hide suicidal thoughts out of fear of losing their jobs. Currently in the United States, only small or controlled populations are actively screened for suicidality outside of a doctor’s visit; these groups include students at schools after a suicide loss, active duty military personnel and prison inmates. The Federal Aviation Administration relies on self-reporting of suicidality, which rarely happens because pilots are worried that such disclosures will threaten their careers. (The FAA once banned pilots who disclosed a mental illness to their employer from ﬂying. Today the agency allows some pilots who take certain antidepressants

Letters

or have mild illnesses to continue ﬂying.) Still, more people must be screened, regardless of their occupation. “Screening normalizes the conversation,” says Dr. Kelly Posner, who developed the Columbia Suicide Severity Rating Scale at Columbia University. As industry considers wider screening, it is important that they be transparent about what will be done with any results. Drug testing in the workplace is understood and clear from the outset. Any suicide screening will need to be treated the same. But screening is only the beginning of the cultural shift around mental illness that needs to take place, particularly for men. One example

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

Kenya must ignore Somalia withdrawal calls

n the aftermath of the Garissa University College terrorist attack, Kenyans are growing exasperated. Al-Shabaab’s objective is to destabilise eastern Africa’s largest economy. Killing innocent students is not war. For it to be a war, the targets would have to be capable of ﬁghting back. By all counts, Al-Shabaab doesn’t have such rights. Somalia would have these rights if it wasn’t co-operating with the Kenyan forces, since Kenya invaded Somalia, not Al- Shabaab. Kenya, on the other hand, had every right to launch into Somalia in pursuit of Al-Shabaab after persistent attacks by the group on the Kenyan coast started hurting our tourism industry and investor conﬁdence in the country. AlShabaab is a problem that had to be tackled. Some politicians, keen to cash in on the apparent blow on the current government, have called for the country’s forces to be withdraw from Somalia. They seem blind to the fact that withdrawing would mean surrendering to a band of terrorists, leaving a fragile country in the hands of predatory criminals, and aban-

of a successful approach to mental illness is the Air Force Suicide Prevention Programme — a military effort to train commanders, troops and civilians in how to identify suicidal tendencies. Screenings can identify a suicidal person, but the actions taken after the screenings — making sure that help is available, working to build empathy and decrease stigma — will help to ensure that a tragedy like the Germanwings crash never happens again. Christopher helped Facebook, Google and YouTube create their suicide prevention policies. Jennifer is a writer and co-founder of Emotion Technology, which promotes mental health.

Mobility in city should be eased

done many years before we took our forces in Somalia. Why now? Why after the deadly massacre? What criteria was used to identify the 86 accounts? Were the sponsors of the terror cells known before the Garissa University College terrorist attack? I thought the courts should be the ones arriving at that verdict. I hope nobody will be victimised for having his account frozen out of sheer rumours, suspicion, witch hunt or business rivalry in the name of ﬁghting terror.

ffortstoimprovetraffic flow in Nairobi must be commended. Even if it’s a short-term solution at least it’s expected to reduce the impact of congestion. The focus of the county government should be on how to make the mobility and accessibility of people better using approaches that reduce traffic congestion and clogging of vehicles. The solution lies in a coordinated public transportation in form of light rail transit system and high capacity buses that would discourage the overreliance on private cars. Equally, an overpass like the one at Museum Hill roundabout if constructed on Uhuru Highway and adjacent roads, would certainly minimise the impact in the long run. Let Kenyans appreciate the effort made by the authorities in resolving the problem.

JUSTIN NKARANGA Mombasa

SETH OLUOCH Nairobi

A Garissa University College student is consoled by relatives. FILE doning our Amisom allies. It is not just a short-sighted proposal, it is a most painful illustration of the intellectual malaise aﬄicting our politicians. While the military campaign in Somalia should continue until AlShabaab is eﬀectively quashed.

MATHEW OTIENO Nairobi ********

he government has frozen 86 local bank accounts suspected to belong to terror sponsors. It is a move in the right direction, which the government should

Why current mourning period is not right for referendum campaigns

he opposition Cord leadership unveiled the Okoa Kenya initiative to ostensibly safeguard democratic gains. Our growing democratic habits allow them to do this, aslong as it is within our laws.

I have misgiving with their decision to launch the exercise in the wake of the Garissa terrorist attack. Cord should have deferred the process and instead joined other Kenyans in addressing the

existential threat to our national security . Kenyans are still traumatised by the Garissa attacks. They are yet to absorb the strain this has caused on the national psyche. To saddle them with the

strain and political passions the campaign for the referendum entails smacks of political brinkmanship.

JOHN TSINJE via email

Conf≥ont causes of ≥adicalisation in the count≥y HARRISON MWIRIGI IKUNDA TERRORISM

ast week’s terrorist attack at Garissa University College was shocking. The brutality, carnage and sheer evil involved in its planning and execution speak volumes about the kind of people behind the attack. In a nutshell, terrorism is the work of death merchants. This latest attack shows that there is a serious social and structural problem in the Kenyan society. The effectiveness and systematic co-ordination of terrorist attacks in the country points to a strong enemy within. The way the Garissa and Westgate Shopping Mall attacks were carried out shows deep knowledge and systematic superb intelligence gathering and execution by the terrorists. They operate with the help of some people residing within Kenyan borders. It is time the world woke up to the realities of global terrorism. If you see dysfunctional societies, poor societies, endemic poverty and unemployment it is a harbinger for global destabilisation of peace. Similarly, the challenges afflicting many global economies and societies with limited freedoms and low economic participation have given the terror groups enough human resources. This is part of the problem in manyArab countries and other states like Somalia. But nobody is secure in the globe any more. Unfortunately for Kenya we are neighbours to a country that has not known serious governance since 1991. With that came the collapse of proper schooling, deficiency in structural developments and credible administration over time. At the same time Kenya has had its share of social economic problems and the endemic culture of corruption. I have mentioned before that I fear idle minds. I fear seeing able bodied people spending their day with little or nothing to do. I have travelled the width and breadth of Kenya and in every urban area or village you will see many adults and young people idling or imbibing in illegal stuff for having nothing to do. Is this not symptomatic of an economic malaise? How do you explain adults spending time drinking illicit liquor or roaming about? How do you explain guys spending time playing games that may not add value to their lives? With these kind of conditions these minds are easily and recklessly lured to criminal activities. Without eradicating the fertile soils of radicalisation the war on terror is incomplete. The starting point obviously remain cracking down very hard on bad elements. We have a global challenge right in our door step. We will need external help as we build internal capacities. But if we wish to get rid of this menace we should not forget attacking corruption with all the might. This is part of the problem that makes us vulnerable. The writer is a Nairobi-based researcher and consultant

BUSINESS DAILY | Thursday April 9, 2015

NEWS INDEPTH

Develope≥s cash in on ≥ising demand fo≥ pa≥king spaces

CITY CENTRE

INVESTMENT More Kenyans search for secure and affordable

lots to park their vehicles for a whole day or for a few minutes BY DOREEN WAINAINAH

he drop in fuel prices has seen an increase in number of cars coming into Nairobi’s central business district (CBD), pushing up the demand for parking spaces. Private developers and parking companies are cashing in on the high numbers of motorists looking for secure spaces near their oﬃces, or those looking to park for a few hours. City Hall estimates that there are a half a million vehicles in the capital and that about 7,000 new vehicles are added to its roads eve-

ry month. Nairobi county collects an average of Sh1.6 million daily from parking. According to the socio-economic atlas of Kenya, it is estimated that 116,200 households in Nairobi own cars. With unreliable public transport, most people drive their cars to work every morning. In addition to this, residents from surrounding counties including Kajiado and Machakos drive into Nairobi on a daily basis. As demand for parking lots rise, city oﬃcials are planning to construct a Sh4 billion multi-storied car park that will add 3,000 spaces in the CBD. The proposed building

will be located on the Sunken Car Park land adjacent to the Aga Khan Walk and Harambee Avenue and will have commercial and office space. Malls and offices have also turned to private parking management systems like Kenya Airports Parking Services (KAPS) to cash in on non-tenants seeking secure spaces to leave their cars. County parking costs Sh300 daily, whether short term or full day parking. For private parking spaces at shopping malls, churches or offices , users pay Sh50 per hour on average, which are more favourable for those seeking to park for a few hours.

Kenya National Theatre It is an outdoor parking across Norfolk Hotel and on the premises of the National Theatre, which is currently under renovation. Generally safe. The parking’s peak hours are between 9am and 5pm.

Holy Family Basilica It’s an open air parking lot. It takes a few minutes to get through the security check into the premises through a barrier. Generally safe, however, the church grounds are accessed by the general public. Most slots are taken up by 11am to 12pm and will be vacated from 5pm.

Up to 1r Sh50 5 to 6 hrs Sh300 9 to 12 rs Sh400 After 10pm a ﬂat rate of Sh200 per hr up to 6am.

NGONG ROAD Up to 1hour Sh20 5 to 6 hrs Sh200 9 to 12 hrs Sh440 7pm to 4am a ﬂat rate of Sh50

The Junction Mall It is a shopping mall with four sections of parking. The ground level parking (outdoor), the upper parking and ground parking bay (indoor) and the newly-built parking silo. Ground level parking is popular due to the ease of entry and exit and it is taken up most day while the silo and indoor parking bays have more space.

Valley Arcade Up to 1 hr Sh50 6 to 7 hrs Sh300 Sh50 for every additional hour after

Up to 1hr Sh50 3 to 4 hrs Sh100 4to 5 hrs Sh150 6 to 12hrs Sh250 An additional Sh50 per hour after.

Adams Arcade Right next to the Greenhouse, the mall also has relatively secure outdoor parking for temporary visits to the gym, eateries or shops in the area.

Crossroads Mall It is a strictly temporary parking for shoppers and other non-tenants frequenting the mall. Free Sh50 Sh300 Sh500 towing

Green House Offers basement parking for its tenants and mall users. Up to 1hr Free 2 to 3 hrs Sh80 3 to 4 hrs Sh120 4 to 5 hrs Sh200 An additional Sh100 per hour up to 12 hours. ALL PHOTOS SALATON NJAU

THE NUMBERS

Up to 1hour 2 to 3 hours 5 to 8 hours 8 to 10 hours Over 10 hours

7,000

New vehicles added onto Nairobi roads every month.

Thursday April 9, 2015 | BUSINESS DAILY

NEWS INDEPTH

Nakumatt Lifestyle (Weekdays) Basement parking with a security check at the entry and a pay point on exit. It has an occasional guard doing rounds.

Moi Avenue Located at the site that was previously Nairobi Stalls, it is a fenced parking with limited slots. It is most popular on weekdays during work hrs(8am to 5pm).

Up to 1hour Sh50 5 to 6 hrs Sh200 9 to 12 hrs Sh300 12-24 hrs Sh350

NSSF Building Parking Rates Up to 1hr Sh50 5 to 6 hrs Sh200 9 to 12 hrs Sh400 Overnight Sh250 in addition to hourly day rates

Moi Avenue Up to 1hr Sh100 5 to 6 hrs Sh200 9 to 12 hrs Sh300 12 to 24 hrs Sh350

Nairobi City County City County parking is available within the CBD. However, there is no added security to these parking spaces , marked only by the lines determining whether they are angle or ﬂash parkings. If you park here, you might accrue added costs of paying ‘parking boys’ to ensure that the side mirrors, wipers, indicators, lights and wheel caps are not stolen.

WESTLANDS, RIVERSIDE, PARKLANDS Nairobi City County Parking Sh300 per day (Sunken car park )

Sh50 Sh250 Sh400 Sh500

Sarit Centre It is an outdoor parking within the compound of the shopping complex. The facility is undergoing construction to expand the parking area and shops. It is busiest during lunch hour and weekends due to the eateries and entertainment spots. Up to 1 hour Sh30 2 to 3 hours Sh100 3 to 4 hours Sh200 An additional Sh100 per hour after four hours.

Diamond Plaza The shopping mall recently expanded adding a new wing. There are two sides for parking, on the old wing and new wing. Being the hub of Indian cuisines and also having shops and ofﬁces, lunchhour and weekends are the peak times for the parking. Up to 1 hour Sh50 2 to 3 hours Sh150 3 to 4 hours Sh200 An additional Sh50 after four hours After 8 hours Sh1,000

Sh1.6m

Amount of money Nairobi county collects on average daily from parking.

116,200

Number of households that own vehicles in Nairobi .

Sh300

Amount of money Nairobi charges per day for parking.

EASTLANDS

OTHERS

Up to 1hour 5 to 6 hrs 9 to 12 hrs 12 to 24 hrs

14 Riverside It is a mixed development with offices and a hotel in its confines. The parking is best for quick visits to the offices as the cost for long term parking is very high. There are limited slots designated to the different offices within the complex and also common parking for those coming to the hotel or offices. It’s peak hour are on weekdays during business hours. Up to 1hr Free Sh200 2 to 3 hrs Sh300 3 to 4 hrs Sh350 4 to 5 hrs An additional Sh50 for every hour after.

Greenspan Mall The mall in Donholm has outdoor parking for its shoppers and tenants. Up to 1 hour Free 2 to 3 hours Sh20 3 to 4 hours Sh30 4 to 5 hours Sh40 Sh20 per hour after that

BUSINESS DAILY | Thursday April 9, 2015

REGIONAL NEWS INSURGENCY Ex-soldiers joining militant groups pose danger with their knowledge of army

Fo≥me≥ Egyptian milita≥y men fi≥e up ≥adical ideology A small but highly dangerous succesattacks are fatal and costly.” sion of former Egyptian army officers As former army chief and head are joining Islamist militant groups, of military intelligence, Sisi is well complicating President Abdel Fataware of the Islamist threat from tah al-Sisi’s efforts to counter what within the military. he calls an existential threat from A militant cell headed by army extremism. officers Abboud al-Zomour and These men are raising the stakes Khaled al-Islambouli assassinated in an insurgency that has killed hunPresident Anwar Sadat in 1981. Years dreds of soldiers and police since the later, former Egyptian army officer army toppled Islamist President MoSeif al-Adel rose to the top ranks of hamed Mursi in 2013. al Qaeda. They pose a danger to US ally A senior Egyptian military official told Reuters the Egypt with their knowledge of the Arab world’s defections were not a phenomenon. “It is logbiggest army, provide ical and normal that we militants with training The≥e a≥e monitor deviant thinkand strategic direction, membe≥s of and even carry out suicide ing. Any armed forces bomb attacks against govmust have loyalty and the a≥my who ernment officials. we take all the measpossess ext≥emist ures needed against Since Mursi was ousted ≥eligious some officers have joined others. The percentthe Ansar Bayt al-Maqdis age is minimal ... you thoughts. But (ABM) Islamist group and can count them on one thei≥ numbe≥s a≥e hand.” planned and participated ve≥y few in attacks on the army and An Egyptian miliEGYPTIAN MILITARY SOURCE other facilities, particularly tary source said the in the Sinai, said Khalil alarmy has a unit that tracks anyone suspectAnani, adjunct professor ed of harboring radical ideology. with the School of Advanced International Studies at Johns Hopkins “Yes there are individuals members of the army who we discover posUniversity. “We can’t talk about a mainstream sess extremist religious thoughts. But or a large scale defection towards extheir numbers are very few. Maybe tremism. We are talking about inditwo or three in a class of 2,000.” More than 200 people, including a vidual cases that could escape and handful of former army and police offind a safe haven in Sinai. Yet their

JOHANNESBURG MTN says lifting of Iran sanctions good for business

Egyptians queue to enter Tunisia in February for a flight evacuating them back to Cairo. A gruesome video showing the beheading of Egyptian Christians by Islamic State group militants sparked the exodus from Libya. FILE ficers, are on trial for joining ABM. The upheaval that followed Hosni Mubarak’s overthrow in 2011 allowed the militants to establish a stronghold in the Sinai .Army special forces officer Hisham Ashmawy is one example of a military man turned jihadist. He never spoke about politics and rarely prayed in public. Then one day he told off his local cleric for reciting the Koran incorrectly. It was an early clue that Ashmawy would take the radical path that still alarms Egyptian authorities decades after Sadat died in a hail of bullets. Men like Ashmawy, who is on the run, are especially troubling for Egypt which is struggling to contain a complex web of militants who roam from the Sinai to Libya, another hub for extremists. Ashmawy’s neighbours in Cairo’s Nasr City district, home to many army officers, never suspected he would become one of Egypt’s most wanted men. “He seemed totally dedicated to his job in the army,” said Sheikh Hamdi, a preacher in a small mosque below Ashmawy’s apartment. An Interior Ministry video that appealed to the public for help showed a clean shaven Ashmawy in his mid 30s

with none of the physical traits associated with hardcore militants. Ashmawy seemed to have a promising career in the military. In 1996, he was chosen for the elite special forces unit known Thunderbolt. But within four years he raised suspicions. First Ashmawy was transferred to an administrative post and then he faced a military trial and was discharged in 2007 after he was seen discussing religion with other officers and inciting them to reject orders, according to sources in the National Security service who gather evidence on ABM members. He was also caught handing out jihadist literature to conscripts. As a civilian, he made a living through an import and export business. But jihad was never far from his mind. Ashmawy met fellow former army officers in that tiny mosque, said the security sources. He formed a cell within ABM which specialised in teaching killing techniques. With another former military officer, Ashmawy also leads the group’s military training committee. -REUTERS

Bu≥kinabe judge to t≥y Hab≥e fo≥ at≥ocities A judge from Burkina Faso has been appointed head of the Senegalese court due to try former Chadian dictator Hissene Habre for torture, war crimes and crimes against humanity, the African Union said. Once dubbed “Africa’s Pinochet”, Habre has been in custody in the Senegalese capital Dakar since his arrest in June 2013 at the home he shared with his wife and children. Rights groups say 40,000 people were killed during the 72-year-old’s eight years in power in Chad under a regime marked by ﬁerce repression of his opponents and the targeting of ethnic groups. Gberdao Gustave Kam has been named for a 10-month term as head of the Extraordinary African Chamber set up by Senegal and the

AU to deal with Habre’s case, the bloc said in a statement. Kam, 56, a former judge at the International Criminal Tribunal for Rwanda, is a technical adviser to Burkina Faso’s Ministry of Justice who practised as a lawyer in Ouagadougou. Delayed for years by Senegal, where Habre has lived since being ousted in 1990, the hearings will set a historic precedent as until now African leaders accused of atrocities have been tried in international courts. The trial, the result of a 19-month investigation by a four-judge panel, is expected to get under way in Senegal within three months, according to Human Rights Watch. A source at the court said however that Kam and his team would set the

BRIEFING

Hissene Habre, former Chadian ruler. AFP

date, adding that “theoretically, it should open this year”. Senegal and the AU signed an agreement in December 2012 to set up the court to try Habre for the offences. The AU had mandated Senegal to try Habre in July 2006 but the

country stalled the process for years under former president Abdoulaye Wade, who was defeated in 2012 elections. Habre was also wanted for trial in Belgium on war crimes and crimes against humanity charges after three Belgian nationals of Chadian origin ﬁled a suit in 2000 for arbitrary arrest, mass murder and torture. Macky Sall, Wade’s successor who took oﬃce in April 2012, ruled out extraditing Habre to Belgium, which was prepared to try him, vowing to organise a trial in Senegal. The trial will also be heard by two Senegalese judges junior to Kam, the court said. Habre has refused to recognise the legitimacy of the process or participate in the proceedings. -AFP

South African mobile phone operator MTN Group has said easing of sanctions against Iran would allow it to transfer about $1 billion in accumulated dividends and a loan repayment from its Iranian unit. MTN has been restricted from repatriating money from Iran owing to the sanctions imposed by the West. “We have in total an equivalent of about $1 billion, which is both a loan repayment from Irancell due back to MTN, as well as accumulated dividends,” Nik Kershaw, head of investor relations at MTN told Reuters on Tuesday.

ACCRA Ghana’s main refinery closed to fix a mechanical fault Ghana’s main oil refinery has been shut down due to a mechanical fault at its and it will be closed for a month, Tema Oil Refinery’s spokeswoman Aba Lokko said. The underlying cause of the breakdown in March at the government-owned refinery is lack of maintenance linked to a lack of investment, coupled with unreliable power supply in a country facing a power crisis, she told Reuters.“We were refining the (oil) residue and then a unit within that plant developed a fault so there was some serious issue with it and so we had to shut down the plant,” she said,

KINSHASA Congo police arrest five pro-democracy activists Police arrested five members of a pro-democracy group in eastern Democratic Republic of Congo as they protested against the illegal detention of activists in the capital Kinshasa, group members said. Police in the city of Goma arrested the members of the youth movement Lucha as they encouraged residents to participate in five minutes of protest by whistling, honking horns and banging on pots and pans at 5 p.m. (1500 GMT), they said. “The police arrived from one side (of the road) and took five (people). The others who were on the other side of the road were able to hide,” said one Lucha member, who wished to remain anonymous.

NIAMEY Benin, Niger finalise terms of Bollore’s 1bn euro rail link Niger and Benin signed a deal to finalise the terms of the construction and operation of a railway linking Niamey with the port of Cotonou, expected to be finished in the middle of next year. French firm Bollore will cover the entire 1.07 billion euro cost of building the rail link, according to the terms of the deal. “We have created the conditions to guarantee the harmonious, diligent and efficient operation of this ambitious and historic project,” said Niger’s Planning Minister Amadou Boubacar Cisse. Bollore will own a 40 per cent stake in the operator BENI rail, in which the two countries will each own 10 per cent. The remaining stake will be owned by private investors from Niger and Benin.

Thursday April 9, 2015 | BUSINESS DAILY

BUSINESS DAILY

BUSINESS

THURSDAY, APRIL 9, 2015

TECHNOLOGY SYSTEMS INNOVATIONS INFORMATION GADGET REVIEWS

inside>>

YouTube creates new revenue for musicians and techies Pages 16-17 >> TECHNOLOGY

Jua kali artisans make water tanks in Kisumu. Small businesses can now access professional services like accounting through Biz4Afrika.co.ke. FILE

New Mic≥osoft po≥tal links SMEs to expe≥ts GROWTH Firm launches Biz4Afrika.co.ke to

connect start-ups to marketers, HR professionals “The Biz4Afrika.co.ke online hub aims to meet the needs of every startccess to professional services such up, SMEs at three entry points; the start, as accounting, legal, human regrowth and acceleration phase by aggregating freemium offers and relevant onsource and marketing are some line services, complemented by valuable of the challenges that stifle growth of information, resources and learning in start-ups and small and medium-sized one place,” said Kunle Awosika, the counenterprises (SMEs) in Kenya. try manager of Microsoft Kenya. GroFin, a development financier A similar online portal was launched specialised in financing and supportin South Africa in 2013. ing small and growing businesses in Mr Awosika said MiAfrica and the Middle East, indicates that more than 70 crosoft has so far enlisted per cent of SMEs fail during partners among them Biz4Af≥ika.co.ke 55 their first three years of opbanks, which are ready to online hub aims offer loans to the SMEs. eration. GroFin notes that access to meet the needs Under the arrangement, to appropriate business fithe registration for the startof eve≥y sta≥t-up, ups and SMEs is free. nance or capital, business SMEs services and assistance and Microsoft said that it will an enabling environment vet firms that intend to ofKUNLE AWOSIKA, COUNTRY fer services to the SMEs and are the three main chalMANAGER MICROSOFT KENYA start-ups and one of the crilenges that start-ups face. teria is that the companies To ensure survival of must be ready to offer free businesses, Microsoft, services for the first six months. through its 4Afrika initiative has “The baseline services of Biz4Afrika launched an online portal which links are offered in a ‘freemium’ format, start-ups and SMEs with various firms whereby basic services are provided free offering professional expertise. The online hub, Biz4Afrika.co.ke Kenof charge while more advanced features ya is set to benefit many entrepreneurs, must be paid for,” Mr Awosika said. contributing to job creation, global comHe said this will enable SMEs to bepetitiveness and wealth creation. come familiar with pay-as-you-go servBY OKUTTAH MARK

How it works

The online hub, Biz4Afrika.co.ke links start-ups and SMEs to professionals like accountants.

Services of Biz4Afrika are offered in a ‘freemium’ format, whereby basic services are provided free of charge while more advanced features must be paid for.

ices that help entrepreneurs maximise their productivity while minimising costs. SMEs can also join the hub as service providers to other businesses, thereby building a pipeline of potential clients. In the past year alone, Microsoft has seen 150,000 SMEs go online across Africa to offer and to use ICT services. Darius Waithaka, the head of SME Solution Centre at Kenya Institute of Management said the online hub will play an important role in creating a conducive environment and harmonise policies that encourage the growth of the SME sector. It will also provide healthy competitiveness to ensure quality and affordable access to markets, technologies, financial services among others, hence promoting and enabling smooth crossborder trade. Microsoft has launched several

programmes targeted at SMEs including BizSpark, an e-commerce portal in partnership with Skrill, and Africa’s first Intellectual Property Hub in Kenya to help entrepreneurs protect and monetise their innovations. “East Africa has already been cited by Harvard University as having surpassed the tipping point from primarily exporting raw materials to creating and exporting value-added goods and services,” Microsoft said. “The continued shift from a labourbased economy to a knowledge economy will require increased online presence, particularly by SMEs that contribute about 45 per cent of Kenya’s GDP.” Kenya’s Vision 2030 defines the economic growth of the SME sector as a major driver of social development, youth employability and a key lever in the enhancement of the country’s global competitiveness. However, due to various challenges, many SMEs close their doors within the first year. Currently, intra-Africa trade is only at 12 per cent compared to 61 per cent within the European Union, according to the African Development Bank. However, the International Data Corporation predicts that 2015 will see closer intra-Africa trade facilitated by ICT initiatives such as payment systems, financial inclusion initiatives, and crossborder payments. mokuttah@ke.nationmedia.com

Kenyans make more calls in EAC bloc after rates cut

Page 17 >>

TECHTALK

Flir FX helps to keep tabs on your home without long footage

Page 18 >> GADGET REVIEW

BUSINESS DAILY | Thursday April 9, 2015

Thursday April 9, 2015 | BUSINESS DAILY

DigitalBusiness

YouTube c≥eates new ≥evenue fo≥ musicians and techies

Technology MBUGUA NJIHIA

millions through OTT content broadcasting channels (Sh736 million) from his song ‘‘Gangnam Style’’. Apps developers are also awarded for their inventions. The developers partner with mobile phone companies to enable downloads BY OLOO WINNIE onto clients’ phones, they then share the ver-the-top content (OTT) online proﬁts. Buni TV partnered with Samsung broadcasting channels such as mobile early last year to enable subscribYouTube are creating new ers download quality Android videos. Vevo, an online entertainment TV, streams of revenue for musicians and other content providers. They have also pays royalties to artistes through the ads reduced entry barriers for startups. played before music or movies start. OTT refers to delivery of audio, video, Cooperates hire web designers to and other media over the Internet with- reach more clients through online marout the involvement of a multiple-system keting. Mr Njau said that for a client to operator in the control or distribution take you serious, you cannot aﬀord to of the content. miss an international online address. Sauti Sol, the all-boys He said that to start a Kenyan music group, reweb, a domain name is cently received Sh2.8 milbought at Goggle. YouTube pays $3 lion for their banned hit “It’s like renting a pe≥ 100 views fo≥ room on the net, your song ‘‘Nishike’’ on YouTube viewership only. its subsc≥ibe≥s, it own room, and to keep it you pay the landlord GogThe song hit a million gets bette≥ with gle,’’ said Mr Njau. views becoming the most The web is used to watched and listened to inte≥national views market products and also song in Kenya in 2014. at 1$ pe≥ click bring income through ad“YouTube pays $3 ANTONY NJAU, vertisements and other (Sh278) per 100 views LECTURER AT BRIDGE COLLEGe commercials. for its subscribers, it gets “To identify yourself, better with international choose a domain that is views, earning 1$ (Sh92) per click,” said Antony Njau, a lecturer unique to you (company). You can then advertise and start being paid from 4,000 at Bridge College in Nairobi. “All we have to do is get our music views,” he said. “Hackers look for vulnerability in a out there to the masses then earn a living for years. We also run cooperate ad- system and exploit its weaknesses, I canverts which earn us extra money,” said not term them evil because they someJoseph Musyoki ‘‘Njoseh’’ of S.o.C, an times save in cases of forgotten passaward winning gospel group. To date words,” said Jovial Mwongeli, owner of the most viewed artiste is Psy, a Korean Zenith Cyber. “They are a security threat. musician, who made over $8 million With information about you they can

Tech Talk

How the Inte≥net continues to change telecommunications

purchase, WhatsApp; Viber, WeChat and a host of others that have put a dent in mobile operator earnings the world over. The cost of mobile data is dropping while capacity increases. Initiatives such as Internet.org are also introducing millions of previously unconnected populations to the Internet often through “smart enough” phones. The traditional telco had the advantage of “owning” the subscriber by controlling access to the mobile SIM card. That advantage has since been rendered null, as OTT platforms leverage the same to authenticate users but they migrate user interaction and experience onto their platforms, which can work over any data connection. This means that without topping up your mobile SIM or having mobile data turned on, you can still communicate with others. Some telcos have moved quickly to stem the revenue bleed by diversifying, mostly to mobile money, but the OTT platforms have already seen this opportunity with some like Facebook Messenger already into payments and those from Asia having powered mobile commerce for years. The telco troubles continue as Google goes strong on Project Loon which will use balloons to deliver Internet connectivity and Facebook works to deploy massive unmanned drones for the same task. It will be interesting to see how the telcos adapt to these advances. In my opinion, the traditional telco is dead. Njihia is CEO of Symbiotic |www.mbuguanjihia.com | @mbuguanjihia

recentlyreceived receivedSh2.8 Sh2.8million millionfor fortheir theirhit hitsong song‘Nishike’ ‘Nishike’on onYouTube YouTube viewership viewershiponly. only.FILE FILE Sauti Sol perform at Arboretum Gardens in Nairobi in February. The group recently steal money from your bank accounts. It gets worse when they personify you to inﬂuence those known to you,” said Mr Njau. Hackers introduce viruses to ruin a system’s normal functioning. On the other hand, blogging is a competitive aﬀair that involves attracting as many readers as one can get. Bloggers with a big following generate more income. The Bloggers Association of Kenya (Bake) rewards top bloggers. Awards are categorised into agriculture, creative writing, politics, technology and entertainment. “It does not require much resources to blog, just a computer and identifying a niche,” advised Mwongeli. A prominent person may require a man-

ager to be in charge of information flow. Mwongeli said that most public figures hire managers to give them feedback on interactions with citizens. He said that one does not need an office to interact with the public as conversations can be monitored right at home.

Posting updates The social manager is responsible for posting updates and replying to messages on social media. “The duty can extend to designing a web,” said Mwongeli. To attract more entrepreneurs to YouTube, in August 2013 Google launched a competition for Africa. The competition

targeted entrepreneurs, innovators and web-lovers who were asked to share short video stories on how the web had transformed their lives and work. Interested entrepreneurs were to make short videos in which they narrated how the Internet had helped them boost their businesses. The winning video received Sh2.13 million. In addition, winners were linked up with mentors to help them develop their enterprises. In the next ﬁve years seven out of the world’s 10 fastest growing economies will be in Africa and the Internet is playing an important part in this transformation. woloo@ke.nationmedia.com

Earning Online Sauti Sol’s song ‘Nishike’ hit a million views, becoming the most wached and listened to song in Kenya in 2014. To date, the most viewed artiste is Korean musician Psy who made over Sh736 million from his song Gangnam Style. Apps developers also earn money from their inventions. They partner with mobile phone companies to enable content downloads onto clients’ phones.

Tech bytes Madison implements new software Madison Insurance Company Kenya Limited has competed the implementation of Enterprise Resource Planning (ERP) software from SAP, that it says will enable it manage its divergent data streams efﬁciently. The implementation was undertaken by Kenyan-based Turnkey Africa Limited and One Connect Limited, SAP partners that specialise in solutions for the insurance industry across Africa. The diverse range of Madison products rapidly created a pressing need for an efﬁcient technology platform to manage the divergent data streams entering and exiting the organisation. The ERP software dubbed, SAP for insurance planning solution, comes with a business process applications core competen-

cies comprising of accounting, procurement, fixed asset management, cash flow management and other technology modules aimed at maintaining efficient data management processes. ”Increased efficiency and rapid decision-

BY OKUTTAH MARK

A man browses the Internet. The disruptive nature of the Internet has made international calls more affordable. AFP

Tech in action

Kenyans make mo≥e calls in EAC bloc afte≥ ≥ates cut

ICT Sauti Sol, Psy and other artistes have earned

ver since Alexander Graham Bell made that first call from his now famous invention, the telephone has forever changed the world. I can attribute the term “global village” to the fact that the mobile phone has made it possible to reach and interact with anyone with a signal across the globe. This has seen many telcos grow and rank as some of the largest companies in the regions they operate, based on revenues and market capitalisation. Telcos have been able to set their prices and have the market make do with it due to lack of options. Enter the Internet and it became evident that a tectonic shift was in play. This is happening in two phases, with the first having been the uptake of voice over IP. A little over a decade ago making international calls was about the most expensive thing one could do using their mobile phone. The disruptive nature of the Internet — even before the transcontinental submarine cables were laid — opened up a very lucrative opportunity in call termination that skirted around the traditional telco, making international calls more affordable. The Communications Authority of Kenya deemed this illegal and on several occasions raided premises and confiscated equipment worth millions in every run. Eventually, the operators themselves latched on and the third party opportunity diminished substantially. The second phase is what we see now, with the explosive growth of OTT (over-the-top) platforms such as Facebook’s most prolific

making are key to increase proﬁtability in the competitive insurance market,” James Ngunjiri, managing director of Madison Insurance said. “The new SAP system has enabled us to streamline business processes consistently and provide reliable information,” he added. Andrew Waititu (left), managing director at SAP East Africa said Madison Insurance’s success is another step in the ongoing successful expansion of SAP’s ERP presence in the insurance and banking industries in East Africa. “It also further strengthens our position as leading provider of IT services to. Madison Insurance joins over 700 insurance companies around the world that have chosen SAP as their strategic technology partner,” Mr Waititu added.

Intel supports apps developers Intel is offering technical and financial support to developers behind three applications that made it on the top of its recently concluded Intel App Elite challenge. The three, GoJimmyGo, JTL Biashara and Mobi Biashara will benefit from each Sh458,000 marketing investment from Intel. They are part of 14 applications in Kenya that took part in the Intel challenge and benefited by getting access to technical software solutions. This helped them in making their applications perform better on a range of mobile devices. In addition, they also got access to consultants who advised and guided them in using the tools. The three apps were ranked based on how much effort the developers had put in improving the user experience and reduc-

ing errors. GoJimmyGo is a mobile game where the user tries to evade a chasing dog. JTL Biashara is a customer service app that enables clients to interact with their service providers and make payments. Mobi Biashara is a mobile banking app targeting ﬁnancial institutions providing depositing, withdrawing, loan management and share management for their clients. “Intel develops technologies, products and initiatives to continually advance how

people work and live. Our mission is to delight customers, employees and shareholders by relentlessly delivering the platform and technology advancements that become essential to the way we work and live, “Agatha Gikunda, Software Services Group Leader, Intel East Africa said. Among the tools developers have access to is the Intel Integrated Native Developer Experience (Intel INDE) which assists developers in writing “native code”. Many developers initially code their applications to be “cross platform”, which while enabling them to launch their applications fast and across the ﬂurry of mobile devices in the market, it comes at a cost of usability of the application. Developers can also test their apps on Intel developed tools that emulate the actual experience on a range of mobile devices.

enyans are now calling more within the East Africa region following the scrapping of taxes imposed on incoming voice calls by Rwanda and Uganda governments, the latest sector report by the Communication Authority of Kenya (CA) has revealed. The report for the three months to December indicates that the number of outgoing voice minutes rose by 24.4 per cent to 17 billion minutes, up from 14 billion in the previous quarter. The number of calls from the neighbouring countries also went up by 8.2 per cent to 20 billion minutes from 19 billion. “The introduction of the ‘One Area Network’ has really seen the traﬃc of voice traﬃc within the region go up. ‘‘It has also reduced the cost of doing business which is in line with our regional integration efforts ,” Fred Matiang’i, the Cabinet Secretary Information told Business Daily. The increase of Kenya mobile subscribers calling the region follows intense lobbying by Safaricom and Airtel. In September, Safaricom slashed its calling rates to Rwanda by 60 per cent to Sh10 per minute, enabling more of its customers to make international calls from Kenya to Rwanda, and vice versa. The previous charge was Sh25 per minute. The new rates also saw Safaricom subscribers visiting Rwanda receive calls for free, and make calls to local Rwandan networks at Sh10, from the previous Sh17.50 per minute. The Safaricom move came ahead of the East African Community Heads of State initia-

Samburu morans use a mobile phone in Isiolo. FILE tive dubbed “One Network” that has also resulted in the Ugandan government slashing its cross-border call rates. In January, Airtel Kenya cut its roaming charges for its subscribers travelling in Uganda. The telco’s subscribers now call for Sh9 per minute while in Uganda, a 60 per cent drop from Sh23 a minute and one shilling less than the charges by rival Safaricom. In June 2013, Uganda introduced Sh7, Tanzania Sh10, Rwanda Sh9 and Burundi Sh13 levies on any calls made by Kenyans when roaming or directly calling from the country. Kenya is the only East Africa state that does not levy any taxes on cross-border calls and has been at the forefront of pushing for introduction of a common termination tariﬀ.

blog of the week http://www.connected.go.ke Over the last ﬁve years the threat of cyber security has grown exponentially. There have been many cyber attacks not only against individuals but also against countries. It is therefore impossible for the public and private sector to ignore the reality and magnitude of the threat. Citizens must be educated on the magnitude of the cyber security threat as well as on ways in which they can increase their online security. A lot of the lapses in online security are fuelled by carelessness such as sharing of sensitive PIN and password information. Citizen online security awareness, especially when they are employees in the public or private sector, is a good measure to reduce cases of online economic crime. NOTE: Blog quotes in this section are edited and do not in any way represent the views of this newspaper or its editors.

BUSINESS DAILY | Thursday April 9, 2015

Thursday April 9, 2015 | BUSINESS DAILY

DigitalBusiness

YouTube c≥eates new ≥evenue fo≥ musicians and techies

Technology MBUGUA NJIHIA

Tech Talk

How the Inte≥net continues to change telecommunications

BY OKUTTAH MARK

A man browses the Internet. The disruptive nature of the Internet has made international calls more affordable. AFP

Tech in action

Kenyans make mo≥e calls in EAC bloc afte≥ ≥ates cut

ICT Sauti Sol, Psy and other artistes have earned

BUSINESS DAILY | Thursday April 9, 2015

DigitalBusiness SECURITY

Gadget reviews

The clips are superimposed on top of each other for a short video

Fli≥ FX helps to keep tabs on you≥ home without tediously long footage Video monitoring is a great way to keep tabs on your home, but it’s tedious to sort through hours of footage to see a few seconds or minutes of action. High-tech imaging company Flir Systems aims to solve that with its new Flir FX security camera. The Flir FX only records when it detects movement, and at the end of the day you can see everything it records in a short video, with all of the clips it captures superimposed on top of each other. The camera can be used indoors and out, and can even be removed from its base so you can use it as an on-demand action camera, like a GoPro. The camera connects to the Flir FX app, available for iOS and Android, where you can view all of the footage is captures. The Flir FX went on sale April 7 for $199 with the indoor setup and $249 for the outdoor model with weather-resistant casing. The Flir FX is a palm-size, portable 4-megapixel camera that monitors your home, back yard, garage, office or any other space. It’s motion-activated, so it only starts recording when something moves in the frame and stops recording when the movement stops. Alternatively, you can also set it to record when its microphone picks up sound. The built-in Smart Zone feature tells the camera to pay attention to movement in only part of the frame, such as your pool, instead of your entire back yard. You set the Smart Zone in the Flir FX apps, and then you’ll get a notification every time something moves in that area. From that notification, you can watch the clip. You connect the Flir FX to Wi-Fi so it can upload videos to Flir’s servers and you can view the clips or live video feed from your phone or tablet. It records in 1080p and sends all of the clips to Flir, where the company stores them

The Flir FX is a palm-size, portable 4-megapixel camera that easily monitors your home, backyard or garage. FLIR.COM

Versatility The camera can be used indoors and out, and can even be removed from its base so you can use it as an on-demand action camera, like a GoPro. The camera connects to the Flir FX app, available for iOS and Android, where you can view all of the footage is captures.

CNET

LG G4 smartphone LG has something new up its sleeve for the G4 smartphone and the South Korean company is alluding to greatness. The device will be revealed at events on April 28 and April 29 (due to time zones) in six cities: New York, London, Paris, Seoul, Singapore and Istanbul. With an invitation that coyly sneaks a peek at a leatheresque material accentuated by stitching, the tagline “see the great, feel the great” hints at a design rehaul that veers from the plastic-laden bodies we’re used to seeing from LG. A few other rumors ﬂoating around also give us a hint at what to expect on the inside.

The Logitech Bluetooth adapter

for up to 30 days, depending on your storage plan (more on that below). You can save clips to your phone, or oﬄoad them to your computer to keep indeﬁnitely. The camera has a 160-degree view, plus temperature and humidity sensors. It can operate in temperatures from zero to 104 degrees Fahrenheit and has two hours of battery life, if not plugged in. RapidRecap is the standout feature of the Flir FX, letting you view an entire day’s worth of video in 90 seconds or less. Flir combines all of the clips the camera records and superimposes the action on top of the static background into one short video. For instance, if you have the Flir pointed at your living room, as people and pets move through that space over the course of the day, they’ll trigger a recording. When you create a Rapid Recap, you’ll see a single shot of eve-

ryone and everything that moved, with time stamps on top of them. You can create a RapidRecap at anytime, selecting the time span you want to see, up to 12 hours. You can also play any of the individual clips within that time span, without the other action, and share those clips through your phone’s share menu. Check out our example of RapidRecap below. Flir handles all of the video processing for the FX camera and oﬀers cloud storage with three monthly plans. The free Cloud Basic plan gives you two days of storage before the videos disappear. You get up to three RapidRecaps per month, using up to six hours of footage for each. Every Flir FX comes with this plan. The Cloud Plus plan costs $9.99 per month or $100 per year and gets you seven days of storage, plus unlimited RapidRecaps using up to 8 hours of footage. With the purchase of a Flir FX, you get a free 30-day trial of Cloud Plus. At any time, you can opt out of cloud storage, and just have your videos record straight to the built-in 8GB microSD card, but you won’t be able to view them from the Flir app. Instead, you’ll need to pop out the SD card and plug it into your computer to see the video and delete clips manually.

The Logitech Bluetooth adapter is rather tiny with its dimensions of 50x50x23mm and it can easily ﬁt in the palm of a hand. If you so wish, you can set it up in such a way that it is hidden from plain sight. The black device is mostly made of tough plastic and should be able to withstand rough usage. The lone Bluetooth button for pairing to devices is placed in a recess on the top. The rear has 3.5mm and RCA outputs, and the power socket. Logitech bundles an RCA-to-3.5mm cable in the box. A small blue LED sits on the bottom of the device and blinks furiously.

HP Stream 11-d023tu HP has come up with a device that gives us another option - the new Stream 11-d023tu. It’s part of a series of devices that emphasise portability and connectivity, and so it breaks from the usual common standards that we take for granted when it comes to laptop speciﬁcations. The Stream lineup also includes a laptop with a 13-inch screen and a tablet with an 8inch screen, but what we have today is the smaller clamshell model, the Stream 11. While it doesn’t have any powerful hardware to boast of, it does have an integrated 3G modem. You can just pop a SIM card into a slot and you’ll be online without a Wi-Fi hotspot.

-CNET

Tech Demystiﬁed

A lot of good can come from a tech bubble in Sillicon Valley Over the last few months the question has been asked by almost everyone in the startup and venture capital community: Are we in a tech bubble? I don’t think there’s even a question any more. Many founders are in deep denial valuing their pre-revenue SaaS Uber for CRM cloudbased big data machine learning platform for millions of dollars pre-money. When a potential investor asks the founder why they are valuing their start-up at such a high valuation, they just don’t know or they say, “we need to look like a unicorn so we

hire the best.” This story has been told by venture capitalists across the Valley. You can think of a bubble like a forest fire. Yes, it’s tragic that trees existing for hundreds of years die and animals are displaced. The flames come through and burn down the weak underbrush. The aftermath looks terrible and hot spots will continue to flare up way after the flames subside. However, just as forest fires are necessary for ecological health, bubbles are necessary for industry health and growth. Forest fires make way for new trees that can grow

stronger fuelled by the ashes of their predecessors. Some venture capitalists will get burned and lessons will be learned similar to those who invested heavily in the dot com bubble. In fact, many of the investors that were active during the 2000 bubble are the ones that keep warning all of us of a potential bubble. Mattermark published a report with data comparing the quarter-one midpoint of 2014 to 2015. Mattermark’s data comes from CrunchBase, AngelList, regulatory ﬁlings, thousands of news sources and com-

pany reported data. I would highly suggest that you download the entire report from Mattermark. The most noticeable item on the report is the drastic slowdown in seed deals decreasing by nearly 300 per cent. This could indicate a shift in venture capital strategy focusing on funding fewer companies and putting more time into the companies they invest in. Does this indicate a venture funding bubble? Potentially. To founders looking to raise capital, it may seem like a bubble as it is statistically more difﬁcult to raise a seed round

of funding now compared to a year ago If burn rates continue to rise, start-ups will be forced to actively look for their next round of funding earlier than they had initially planned. This will surely lead to more start-ups raising a down-round (a round of funding raised at a lower valuation than in a previous round) or not being able to raise at all—many of whom will sadly die. The founders who are in it for the wrong reasons will go running back to their old bosses begging for their stable jobs back. -TECHCRUNCH

Thursday April 9, 2015 | BUSINESS DAILY

MONEY & MARKETS NEWS I REVIEWS I ANALYSIS

KQ stock dips 30 pe≥ cent as ai≥line ﬂies into tu≥bulent times

P≥ivate equity ﬁ≥m names T≥ansCentu≥y man pa≥tne≥

Kenya Airways share price April 2014-2015 (Sh) KQ’s share price is now at an all time low at a time when the airline has been the subject of a series of negative news tied to cash ﬂow problems.

BY JOHN GACHIRI

CAUSE The national carrier’s share price has

been battered by several negative reports 4/7/2014

by investors concern over the negative news around the airline, like the Kenya Airways has shed 30 per cent challenges with staff, and the gloomy over the past two months reverting outlook on tourism which is an issue to a Sh7.75 low on a series of negative that affects the airline,” said Standard corporate reports, erasing price gains Investment Bank (SIB) analyst Eric made between November last year and Musau. February 2015. “KQ have big financing and operThe KQ stock had climbed to a six- ating costs, and therefore need their month high of Sh11 on February 6 on aircraft to operate at higher capacity. Investors weighing these the back of positive invescost demands against the tor sentiment driven by negative fundamentals the falling fuel prices and The dip we a≥e misplaced hope of swift end would get concerned.” to the Ebola lockdown that seeing is b≥ought by He added however robbed the airline of key that the announcement investo≥s conce≥n of full-year results soon West African routes from ove≥ the negative could yet change the late last year. Analysts had pointed out news a≥ound the negative sentiments, the carriers’ fundamentals depending on the direcai≥line, like the tion of the numbers. The were beginning to hint at a challenges with latest indication of KQ’s respite from its dire financial performance which saw financial distress came staff.. the airline report an afterat the end of last month ERIC MUSAU, SIB ANALYST tax loss of Sh10.5 billion for when a pilots association the half year to September 2014. In the revealed the airline had not remitted to past two months however, the airline’s banks money it deducted from monthly financial woes have become more ap- salaries to service loans. Kenya Airways on its part said it had parent and wiped off gains the share alerted staff of the delay in making the had made. “The dip we are seeing is brought March payments to banks, arising out BY CHARLES MWANIKI

4/7/2015 SOURCE: REUTERS

Kenya Airways chief executive officer Mbuvi Ngunze (left) and group finance director Alex Mbugua during the release of the firm’s half- year financial results last year. At Sh7.75, the airline’s stock is at its all-time low. FILE of cash flow constraints. “In the current context of a weak operating environment, the airline has had to prioritise its payables, including payments for staff-related deductions,” said KQ chief executive officer Mbuvi Ngunze in a statement. Mr Ngunze has also revealed the airline is relying on debt to pay its workforce of nearly 4,000. The airline has had to ward off threats of labour unrest following the retrenchment of 10 of its older pilots due to a fleet modernisation programme. A spate of terror attacks in Kenya—the latest being the Garissa University College massacre last week—have brought travel advisories hitting tourism and the service sector hard. They have denied the airline passenger numbers from its European routes. “We are more bearish on the service

sector. Insecurity is of grave concern …it may take a while to recover especially on travel and tourism,” said Genghis Capital analyst Silha Rasugu. Its stock has mainly been traded by local investors, with bargain hunters having bought strongly in the third quarter of last year attracted by the low prevailing price. Such investors tend to book shortterm profits and exit stocks at the earliest sign of trouble. Data from SIB for the first quarter of this year shows 90 per cent of trading on the KQ share was done by local investors. Foreign investors, who tend to hold stock for the long term, though were net buyers into the stock, with a net inflow of Sh34 million ($370,900) for the first quarter of the year. cmwaniki@ke.nationmedia.com

Ex-Blackwate≥ ≥eaps f≥om Phoenix Aviation takeove≥ BY JOHN GACHIRI

Phoenix Aviation accounted for a fifth of Frontier Services Group (FSG) revenues in five months of 2014. FSG, a logistics firm based in Nairobi and Hong Kong, said its newly acquired Phoenix Aviation last year earned Sh787.4 million in revenues equivalent to 21 per cent of Sh3.7 billion group revenues. FSG, chaired by Blackwater founder Erik Prince, says Phoenix’s contribution would even have been larger if the local airline had been bought at the beginning of 2014. “The acquired business contributed revenue of approximately Hong Kong dollars 65.9 million (Sh787.7 million) and net profit after tax of approximately

HK dollars 5.45 million (Sh65.1 million) to the group for the period from July 28, 2014 (date of acquisition) to December 31 , 2014,” disclosed FSG annual report for 2014. “If the acquisition had occurred on January 1, 2014 the contribution to the consolidated revenue and net proﬁt for the year ended December 31, 2014 would have been approximately HK dollars 162.4 million (Sh1.94 billion) and HK dollars 8.6 million (Sh102.5 million) respectively.” FSG bought a 49 per cent stake in Phoenix Aviation for Sh1.2 billion which was meant to support its logistics business that services government, humanitarian agencies, NGOs and oil exploration ﬁrms. The company said it will grow rev-

Mr Erik Prince, the Frontier Services Group chairman. AFP enues by buying other companies. “We are especially pleased with the investment we made in Phoenix Aviation, a key element to our core growth strategy. ‘‘This transaction is an example of our commitment to becoming the most

capable, most well regarded speciality aviation and logistics business serving the African continent. We will continue to evaluate strategic opportunities to increase our geographic and customer diversiﬁcation throughout Africa,” said Mr Prince. FSG has already entered into acquisition talks with a logistics company based in the Democratic Republic of Congo, which is meant to give it access to the vast central African region. The company has expanded its local workforce and advertised various positions in late February. FSG said that it could not give a breakdown of its local workforce but its annual report states that it had 303 employees in 2014 up from 78 the previous year.

Pan African private equity ﬁrm Phatisa has appointed Yida Kemoli, the executive director of TransCentury subsidiary Civicon, its senior partner for East Africa. The ﬁrm said he was an obvious choice since he was already familiar with Phatisa and has experience in the private equity industry. Mr Kemoli was a member of the African Agriculture Fund (AAF), a fund managed by Phatisa. “Although Yida has been part of the Phatisa family for a number of years, as a member of the AAF Investment Committee, we are delighted that he is joining us on a permanent basis. His reputation and deal-doing track record in East Africa precedes him,” said Phatisa senior manager Duncan Owen in a statement. “This appointment again highlights Phatisa’s commitment to grow long-term equity value for all funds under management across Africa.”

Deal Mr Kemoli has advised other private equity funds including Abraaj, formerly Aureos, which has in the past made investments in Brookside, UAP Insurance and Equity Bank. He joins David Owino and Edwin Dande as senior executives who have exited listed firms for the private equity industry. Mr Owino left Centum in March 2014 and founded Ascent Capital while Mr Dande left Britam and set up Cytonn in September the same year. Phatisa has been active in the real-estate sector and is constructing apartments targeting young professionals in Nairobi County and satellite towns. The private equity firm has also invested in General Plastics, the supplier of containers to major manufacturers, for an undisclosed amount. The deal was announced in January. Despite being vague on detail the firm’s investment criteria is to make investments of between $5 million (Sh459 million) and $24 million (Sh2.2 billion) in exchange for a majority or a significant minority equity stake and board representation.

BUSINESS DAILY | Thursday April 9, 2015

MONEY MARKETS COUNTY&BUSINESS EXPANSION Proceeds of the private placement are set to ﬁnance new investments

Shilling weakens on tou≥ism slump afte≥ te≥≥o≥ attack

Ex-B≥itam chiefs Cytonn oﬀe≥ values company at Sh1.1bn BY GEOFFREY IRUNGU

Cytonn Investments, a Kenyanowned firm, has concluded a private placement offer that valued the company at Sh1.1 billion. The company sold “more than” 10 per cent of its stake to high networth investors. The firm, founded by former British American investments (Britam) top executives, opened the private placement offer in February that concluded on March 31. The proceeds of the offer are set to finance new investments. “Proceeds of the offering will go towards strategic investments in our development affiliate, a distribution platform, and technology,” said the company in a statement following the conclusion of the offer. This is one in a series of private

placements either announced or have taken place in Kenya in the past few years. Medium-sized lender Chase Bank has announced plans to raise Sh2.5 billion to fund its fast-paced growth. The bank held another private placement in 2011 during which it raised Sh810 million. Commercial Bank of Africa raised Sh1.5 billion through a similar placement in 2013 to ﬁnance its entry into Uganda while Family Bank has recently mobilised cash in a similar manner. Oil and gas logistics ﬁrm Atlas Development and water tanks vendor Flame Tree Holdings mobilised money through private placements last year before listing in the Growth Enterprises Market segment of the Nairobi Securities Exchange. The attraction of private place-

Cytton founder Edwin Dande. The company concluded its private placement offer on March 31. FILE

ment is that a company does not have to make its financial details or business public. Only the targeted investors have access to the company’s details. The main drawback of a private placement is that it may not always find it easy raising the money given that the general public is not invited to subscribe to the offers. Cytonn founders were four former British American Asset Management (BAAM) executives including Edwin Dande (former chief executive), Shiv Arora (investment analyst), Patricia Wanjama (head of legal) and Elizabeth Nkukuu (portfolio manager). BAAM is a subsidiary of Britam. A fall-out happened after a realestate developer called Acorn signed

an agreement for some projects with Britam. No sooner had the executives moved to Cytonn than the company got appointed as the lead transaction advisers for projects estimated to be worth Sh40 billion, including a large proportion from Acorn. The executives soon got caught up in a court battle where Britam sought to recover Sh3.9 billion it claimed the former BAAM managers had illegally transferred to the accounts of Acorn’s four special purpose vehicles formed to develop various real-estate projects. Britam sought to block bank accounts of Acorn’s special purposes vehicles. The court allowed the accounts to be blocked. girungu@ke.nationmedia.com

The shilling weakened yesterday despite dollar sales by the central bank on the previous day because of an expected downturn in the key tourism sector after a deadly attack last week. At 0830 GMT, commercial banks quoted the shilling at 92.60/80 to the dollar, from Tuesday’s close of 92.55/65. The shilling had recovered from an intraday low of 92.82/92 on Tuesday after the central bank sold an unspeciﬁed amount of dollars to banks to support the local currency. Hoteliers in a country that counts tourism as one of its major foreign exchange earners say visitors have cancelled bookings after the Al-Qaeda-allied Al-Shabaab gunmen killed 148 people during the assault last Thursday. Kenya’s tourism industry has been in decline since 2013 when Al-Shabaab stormed an upscale shopping mall in the capital Nairobi, killing 67 people during a bloody four-day siege. Traders said the negative outlook for tourism had put pressure on the shilling. “Central bank was in the market, managed to slow down the weakening, though the trend looks weaker as we progress,” a senior trader at one commercial bank said. “With the terrorist attack we have a further slide on tourism; more cancellations, more travel advisories. That sector is going to really slow down.” -REUTERS

Pancontinental withd≥aws f≥om Mombasa oil block BY GEOFFREY IRUNGU

Australia’s Pancontinental has exited its stake in an offshore block located near Mombasa County. The oil and gas firm told Australian Stock Exchange (ASX) it would no longer participate in Block L10B as it found it financially prudent to concentrate on its partly owned Block L10A. The latter offshore block yielded the first oil and gas along the Kenyan coast last year. Pancontinental held a 25 per cent interest in L10B, while British multinational oil and gas company BG Group—set for $70 billion (Sh6.3 trillion or 1.25 times Kenya GDP) buyout by Royal Dutch Shell—holds 75 per cent. “The company considers the withdrawal is in the interest of prudent financial management, whilst maintaining a manageable and prospective exploration portfolio,” said Pancontinental in the announcement. Analysts said the pressure

Ownership Pancontinental held a 25 per cent interest in L10B, while British multinational oil and gas company BG Group holds 75 per cent. on ﬁnances is forcing small explorers to allocate their resources only to the most attractive prospects. “As small explorers face challenges raising capital, they have had to relook at their portfolio and only keep the most attractive prospects,” said Standard Investment Bank in a statement. Pancontinental will now shift its focus to Block L10A, where it holds an 18.75 per cent stake with BG Group owning 50 per cent and PTTEP of Thailand holding the remaining 31.25 per cent. “Licence area L10B lies immediately to the south of area L10A, in which a joint venture also operated by BG Group (50 per cent) drilled the Sunbird-1 oil discovery well in 2014,” said the announcement. The oil ﬁrm said that both

blocks have similar geological features given that they are adjoining. In Block L10A, the explorers found 29.6 metres of gas column as well as 14 metres of oil column, but the commercial viability is yet to be revealed. The announcement from Pancontinental came as its partner BG Group sold a stake to Shell in both cash and exchange of shares. In the meantime international media yesterday reported Shell was at an advanced stage in talks to buy BG Group in what was billed as one of biggest transactions in the oil industry in more than a decade. If the deal is completed it will see BG shareholders also own 19 per cent of the combined worth of the group. Reuters said the transaction would bring Shell’s market capitalisation closer to that of its rival US major ExxonMobil. Shell is currently valued at Sh19 trillion ($202 billion) while Exxon is worth Sh33 trillion ($360 billion).

Thursday April 9, 2015 | BUSINESS DAILY

MONEY & MARKETS GLOBAL

Wall St≥eet bullish as it heads into wo≥st ea≥nings season in six yea≥s CONFIDENCE There has been no panic dumping

of stocks despite tumble in earnings forecast York. “It speaks to people’s expectaWall Street is greeting what is expected to be the worst earnings season since tions that the Federal Reserve is going to remain on hold at least until September, 2009 with a gigantic shrug. maybe a little longer.” Though there has been some sellS&P 500 earnings typically beat lowing in recent weeks, there’s been no panic dumping of stocks, even though ered analysts’ expectations, and stratforecasts for S&P 500 first-quarter egists said the unusually large drop in first-quarter forecasts sets a low bar for earnings have tumbled since Jan. 1, companies to surpass. thanks to the surging dollar, falling oil Energy is expected to take the bigprices and another severe winter. The earnings season unofficially kicked off gest hit this earnings period, although yesterday with results from aluminum analysts have cut projections for every company Alcoa. sector. The market is “not expecting much” Among some key early results, JPfrom earnings this quarter, said Joe Bell, Morgan Chase is due to report next week along with other banks and Gensenior equity analyst at Schaeffer’s Ineral Electric. vestment Research in CincinFirst-quarter S&P 500 nati, which means “the highearnings are projected to er probability would be for The ma≥ket have declined by 2.8 an upside surprise.” is holding up percent from a year ago, From the first quarter of which would make the ≥ema≥kably well... 2008 to the fourth quarter of 2014, the median difference quarter the worst for reall in the face of between the initial earnings sults since the third quarter of 2009, not long after ea≥nings conce≥ns forecast in a quarter and the the United States emerged final result is a gain of 8.5 perROBER PAVLIK, CHIEF from the Great Recession, centage points, Thomson ReMARKET STRATEGIST, BOSTON according to Thomson Reuters data showed. PRIVATE WEALTH uters data. The drop in estimates has But investor sentiment been well telegraphed, espehas been boosted by optimism that the cially by US companies themselves. Federal Reserve will continue to delay If earnings do come in along the lines predicted by analysts, stocks would look its first interest rate hike in nearly a a bit pricey, but any positive surprises decade. The S&P 500 lost 1.7 per cent could result in shares being reasonably in March but remains up 0.8 percent valued. The S&P 500’s forward pricefor the year so far. “The market is holding up remarkto-earnings ratio stands at 16.7, down ably well... all in the face of earnings from more than 17 in recent weeks but roughly where it was at the end of 2014. concerns and the fact that economic The historical average is 14.9, Thomson news is a little worse than expected,” Reuters data showed. said Robert Pavlik, chief market stratOutlooks from S&P 500 companies egist at Boston Private Wealth in New

Strong dollar tends to dampen profits for US multinationals when overseas profits are translated back into dollars. FILE are the most negative since the fourth quarter of 2013, according to Thomson Reuters data. Of the 128 outlooks from S&P 500 companies, 105 were negative and 17 were positive. Among those 105 warnings on the quarter, at least 69 companies cited the stronger dollar as a headwind, making it the most common complaint, according to a Thomson Reuters analysis. A stronger dollar tends to dampen profits for US multinationals when overseas profits are translated back into dollars. The dollar gained nine per cent against a basket of currencies in the first quarter. Priceline and Hewlett-Packard were among companies with the most pronounced currency impact, the search showed. “Our biggest shortterm challenge is currency,” Priceline’s president and chief executive, Darren Huston, said in the company’s Feb. 19

conference call, noting that more than 90 percent of Priceline’s business is in its international brands. Just a handful of companies pointed to this winter’s weather, which brought heavy snowfall in parts of the country. At least 11 companies cited lower oil prices as a negative, while 13 cited energy as a positive factor. No S&P 500 energy companies gave quarterly guidance, which is often the case, but big predicted declines in energy shares is the largest reason for the overall negative outlook. S&P 500 energy earnings are projected to have dropped 64 percent from a year ago, Thomson Reuters data showed. US oil prices are down about 50 per cent since the end of June. Without energy, S&P 500 earnings for the quarter are forecast to have risen 5.4 per cent. -REUTERS

Oil down on US stockpiles, ≥eco≥d Saudi output Oil prices fell more than a per cent yesterday as industry data showed a larger-than-expected weekly increase in US stockpiles and as Saudi Arabia reported record output in March. The decline in prices followed a rally on Tuesday, when US crude approached 2015 highs following strong jobs data and government forecasts for lower US crude production growth and higher global demand for oil. “We’re going to need to see a very big uptick in demand to oﬀset that supply,” Ben Le Brun, analyst at OptionsXpress in Sydney said. “There is a glut of supply in oil at the moment.” Brent May crude LCOc1 was down 72 cents at $58.38 a barrel by 0623 GMT and US May crude CLc1 dropped $1.03 to $52.95 a barrel. Both bench-

marks posted strong gains in the past two sessions, but are still down about 50 per cent since June last year, when prices began their fall. Data from the American Petroleum Institute (API) showed US crude stocks surged 12.2 million barrels last week against analyst expectations for an increase of 3.4 million barrels. Adding to that supply, Saudi oil minister Ali al-Naimi said late on Tuesday that Saudi output would likely remain around 10 million barrels per day (bpd) after posting a record high of 10.3 million bpd in March. Naimi also said the Kingdom stood ready to “improve” prices but only if producers outside the Organization of the Petroleum Exporting Countries (Opec) joined the eﬀort.

In numbers US crude stocks surged 12.2 million barrels last week Saudi oil minister said output would remain around 10 million barrels a day

“Opec will not reduce oil production. In fact, its output may even increase with the return of Iran,” Hans van Cleef, senior energy economist at

ABN Amro said in an April 7 note. Iranian oil officials are in Beijing this week to discuss oil sales and Chinese investments in Iran, just days after Tehran and world powers reached a framework nuclear deal. “Ahead of this expansion of supply, the downward pressure on the oil price will increase sharply due to speculation,” van Cleef said. Still, any significant increase in Iranian oil exports is unlikely until 2016, analysts have said. Meanwhile, Royal Dutch Shell said yesterday it had agreed to buy BG Group (BG.L) for 47 billion pounds ($70 billion) in the first oil super-merger in a decade. -REUTERS

Japan stocks scale 15-yea≥ peaks amid speculation

Japanese shares scaled 15-year peaks yesterday while Hong Kong’s market leapt to seven-year highs amid speculation of more stimulus from China and Japan, as well as a delayed start to any tightening by the US Federal Reserve. Just before the European open, Royal Dutch Shell said it had agreed to buy BG Group for 47 billion pounds ($70 billion) in the first oil super-merger in a decade. Futures were pointing to a softer opening for European stock markets, but the confirmation of the megadeal could boost sentiment. In Asian time, the Bank of Japan disappointed some by ending a twoday policy meeting with no new steps in its already massive bond-buying campaign, nudging the dollar down on the yen. Yet with inflation back at zero, there is much talk it might expand the program at its next meeting on April 30. Investors were encouraged enough to lift the Nikkei .N225 0.8 per cent and finally take out a triple top at 19,778. The break took it to ground last trod in April 2000 and was seen as technically bullish with 20,000 the obvious next target.

Milestones Other milestones littered the region as Hong Kong shares shattered major resistance with a 2.6 per cent rise to the highest since mid-2008. Shanghai scored seven-year peaks and MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.2 per cent to its highest since mid-September. South Korea’s main index made a seven-month top, while the Philippines market has been on a tear over the last couple of weeks to reach record highs. The chase for yield in emerging markets helped offset a flat finish for Wall Street, where a higher dollar was viewed as a threat to multinational corporations’ profits. Bank of America-Merrill Lynch on Tuesday cut its 2015 earnings estimates for the S&P 500 by $2 a share. The Dow ended Tuesday down 0.03 percent, while the S&P 500 lost 0.21 per cent and the Nasdaq 0.14 per cent. The dollar recovered much of the ground it lost to the euro following Friday’s disappointing U.S. jobs report, to stand at $1.0835 . After the BOJ decision It dipped against the yen to trade at 119.90 , leaving behind an early 120.34 top. Against a basket of currencies, the dollar was also shade lower at 97.719. In commodities, oil pared recent gains after Saudi Arabia reported record production of 10.3 million barrels per day in March, a figure the country’s oil minister said was unlikely to fall by much. -REUTERS

BUSINESS DAILY | Thursday April 9, 2015

MARKET DATA Agro Commodities Market Early Morning wholesale commodity prices 07.04.2015 COMMODITY Unit Kg Code Nairobi CEREAL Dry Maize Bag 90 20 2500 Green Maize Ext Bag 115 19 3600 Finger Millet Bag 90 41 7200 Sorghum Bag 90 42 4000 Wheat Bag 90 48 LEGUMES Beans Canadian Bag 90 4 6300 Beans Rosecoco Bag 90 5 6500 Beans Mwitemania Bag 90 7 6300 Mwezi Moja Bag 90 6 6300 Dolichos (Njahi) Bag 90 35 6800 Green Gram Bag 90 46 11500 Cowpeas Bag 90 45 7400 Fresh Peas Bag 51 27 3800 Groundnuts Bag 110 44 13000 ROOTS & TUBERS Red Irish Potatoes Bag 110 29 2300 White Irish Potatoes Bag 110 30 2400 Cassava Fresh Bag 99 43 2000 Sweet Potatoes Bag 98 31 3600 VEGETABLES Cabbages Ext Bag 126 9 2800 Cooking Bananas Med Bunch 22 2 540 Carrots Ext Bag 138 13 4200 Tomatoes Lg Box 64 32 5500 Onions Dry net 13 22 900 Spring Onions Bag 142 23 2200 Chillies Bag 38 11 3400 Cucumber Bag 50 14 2300 Capsicums Bag 50 12 3000 Brinjals Bag 44 8 2000 Kales Bag 50 15 3000 Cauliﬂower crate 39 10 2800 Lettuce Bag 51 17 2400 FRUITS Passion Fruits Bag 57 25 4800 Oranges Bag 93 24 3500 Lemons Bag 95 16 2600 Mangoes Local Bag 126 21 2700 Ripe Bananas Med Bunch 14 3 640 Mangoes Ngowe Sm Basket 25 36 1100 Limes net 13 18 900 Pineapples Dozen 13 28 720 Pawpaw Lg Box 54 26 2000 Avocado Bag 90 1 2600 OTHERS Eggs Tray 47 300

Commodities

Mombasa Kisumu

Nakuru

Loitoktok

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

6800 6500 7650 9900 6300 5500 14080

13000 8200 2500 10000

3500 4000 1500 3000

3200 3200 2100 2500

3000

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

5500 3200 4000

3000 3000 1700 2800 300 1800

5000 2600 2700 2800 750

630 1300 1600

480 2500 2500

475 1250 600 900 1100 3300 360

300

2500

280

Victim Yemen A Yemeni boy sits between bags of grain at a market in the old city of the capital Sanaa. The Red Cross warned of a “catastrophic” situation in Yemen’s main southern city Aden, as loyalist forces battled rebels in the streets backed by shelling by Saudi-led warships.

6200

4000 4000

3000 500 5000 2500 1250

AFP 1800

Global Commodity Prices Effective date: 8th April 2015

3000 450

CURRENCY LAST NET CHNG

330

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 2,282.99 301.98 497.53 50,568.05 1,881.98 537.52 122.59 166.93 925.67 6,675.20 1,059.68 1,222.06 563.20 515.67 67,151.47 668.84 298.90 255.21 643.45 3,472.70 758.92 4,653.89 41,711.46 638.93 732.52 2,107.68 1,356.97 121.62 1,724.33 972.79 766.25 524.99 447.08 353.20 344.70 1,383.44

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 2,282.99 301.98 497.53 50,568.05 1,881.98 537.52 122.59 166.93 925.67 6,675.20 1,059.68 1,222.06 563.20 515.67 67,151.47 668.84 298.90 255.21 643.45 3,472.70 758.92 4,653.89 41,711.46 638.93 732.52 2,107.68 1,356.97 121.62 1,724.33 972.79 766.25 524.99 447.08 353.20 344.70 1,383.44

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 2,388.05 295.41 493.43 50,580.21 1,897.71 533.79 121.16 165.18 833.43 6,533.16 1,093.36 1,235.04 550.23 571.51 68,097.03 701.25 301.50 266.38 635.03 3,659.64 752.73 4,876.14 42,163.62 637.95 778.27 2,196.42 1,327.55 139.90 1,699.20 1,032.66 827.47 533.10 480.11 357.17 313.40 1,365.07

BRITISH AMERICAN

CBA

DAILY YIELD EFFECTIVE ANNUAL RATE 7.28%

7.53%

8.97%

9.32%

11.45%

USD

368.40

1.60

UAP

COFFEE

USD

173.00

-3.00

ICEA

10.84%

15.00

AMANA

10.60%

11.13%

GENCAP HELA

11.78%

12.32%

PAN AFRICA PESA+

11.32%

11.98%

STANLIB

9.73%

10.17%

CURRENCY

BUY

SELL

114.26

110.26

USD

101.05

OLD MUTUAL / TOBOA

163.86

174.49

BRITISH AMERICAN

BA MANAGED RETIREMENT

USD

RUBBER

MSCI Emerging Markets Sector Indices

CURRENCY

OLD MUTUAL

SUGAR NO5

COCOA

PCT.CHNG OPEN -10.13% 413.01 -1.63% 1,059.25 0.73% 139.08 9.65% 2,208.10 -0.19% 558.85 -1.99% 270.72 1.40% 512.39 -1.92% 437.86 -8.89% 93.23 -1.07% 1,897.57 -1.28% 4,202.13 2.37% 71.39 -4.40% 2,282.99 2.23% 301.98 0.83% 497.53 -0.02% 50,568.05 -0.83% 1,881.98 0.70% 537.52 1.18% 122.59 1.06% 166.93 11.07% 925.67 2.17% 6,675.20 -3.08% 1,059.68 -1.05% 1,222.06 2.36% 563.20 -9.77% 515.67 -1.39% 67,151.47 -4.62% 668.84 -0.86% 298.90 -4.19% 255.21 1.32% 643.45 -5.11% 3,472.70 0.82% 758.92 -4.56% 4,653.89 -1.07% 41,711.46 0.15% 638.93 -5.88% 732.52 -4.04% 2,107.68 2.22% 1,356.97 -13.06% 121.62 1.48% 1,724.33 -5.80% 972.79 -7.40% 766.25 -1.52% 524.99 -6.88% 447.08 -1.11% 353.20 9.99% 344.70 1.35% 1,383.44

MONEY MARKET FUND

SOFTS

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

NAME LAST NET.CHNG 413.01 -46.54 CI-UAE 1,059.25 -17.51 CI-AC AMER. CI-ASIA PAC 139.08 1.01 2,208.10 194.39 CI-ARGENTINA 558.85 -1.08 CI-BRIC 270.72 -5.48 BRIC BRIC GROWTH 512.39 7.09 437.86 -8.58 BRIC VALUE 93.23 -9.10 CI-BAHRAIN 1,897.57 -20.46 CI-BRAZIL FREE 4,202.13 -54.57 CI-CHILE 71.39 1.66 CI-CHINA FREE CI-COLOMBIA 2,282.99 -105.06 6.58 CI-CZECH REPUBLI 301.98 497.53 4.10 CI-EU 50,568.05 -12.16 CI-EM CI-EGYPT 1,881.98 -15.73 537.52 3.73 CI-AC EUROPE 122.59 1.43 CI-C.FE 166.93 1.75 CI-GOLD DRAGON 925.67 92.24 CI-HUNGARY 6,675.20 142.04 CI-INDON. FREE 1,059.68 -33.67 CI-INDIA CI-JOEG & MA 1,222.06 -12.98 563.20 12.97 CI-KOREA 515.67 -55.84 CI-KUWAIT CI-EM L.AMERICA 67,151.47 -945.56 668.84 -32.41 CI-SRI LANKA 298.90 -2.60 CI-MOROCCO CI-EM E.EUROPE 255.21 -11.16 643.45 8.41 CI-EM FAR EAST -186.94 CI-EM EUR+M.EAST 3,472.70 758.92 6.20 CI-EM ASIA CI-EM EUROPE 4,653.89 -222.25 -452.16 CI-MEXICO FREE 41,711.46 0.98 CI-MALAYSIA FREE 638.93 CI-OMAN 732.52 -45.75 2,107.68 -88.74 CI-PERU 1,356.97 29.42 CI-PHILIPP.FREE 121.62 -18.28 CI-PAKISTAN CI-POLAND 1,724.33 25.13 972.79 -59.87 CI-QATAR 766.25 -61.22 CI-RUSSIA CI-THAILAND FREE 524.99 -8.11 447.08 -33.03 CI-TURKEY 353.20 -3.97 CI-TAIWAN CI-ISRAEL 344.70 31.30 18.37 CI-SOUTH AFRICA 1,383.44

Effective date: 7th April 2015

AGRO COMMODITIES COMMODITY

Unit Trusts

2800.00

JPY

205.00

0.00

FROZEN OJ CON1 USC

119.00

-0.75

COTTON NO2

66.59

0.17

USC

GRAINS

FIXED INCOME FUND GENCAP HAZINA

CORN

USC

383.25

0.25

NABO AFRICA

MAIZE EUR

EUR

155.75

1.25

BALANCED FUND

WHEAT

USC

525.75

-0.25

ROUGH RICE

USD

10.66

-0.02

OILSEEDS

AMANA

125.66

SOY BEANS

USC

972.00

1.00

ICEA

144.62

152.23

SOY BEAN OIL

USC

30.90

-0.13

GENCAP ENEZA

133.43

128.76

CANOLA

CAD

452.90

-0.90

UAP

PALM OIL

MYR

2264.00

-8.00

PAN AFRICA CHAMA+

10.84

11.18

STANLIB

131.67

USD

115.49

441.98

NABO AFRICA EQUITY FUND

METALS & MINING SYMBOL CURRENCY 100 OZ GOLD

LAST

NET CHG

OLD MUTUAL

412.50

OLD MUTUAL EAST AFRICA FUND

161.16

170.56

AMANA

125.90

170.04

USD

1207.10

-3.50

SILVER

JPY

65.00

1.00

BRITISH AMERICAN

HG COPPER

USC

2.76

-0.01

CBA

170.04

ICEA

153.56

161.64

GENCAP HISA

139.74

134.85

PLATINUM

JPY

ALUMINIUM

CNY

4507.00 13370.00

-12.00 -30.00

SH SH

191.52

USD

104.45

OLD MUTUAL BOND FUND

100.26

102.64

BRITISH AMERICAN

ICEA

98.24

99.23

UAP

NABO AFRICA

OIL& GAS SYMBOL

UAP STANLIB BOND FUND

CURRENCY

LAST

NET CHG

LIGHT CRUDE

USD

52.75

-1.23

NO 2 HT OIL

USD

1.76

-0.03

BRENT CRUDE

USD

58.10

-1.00

STANLIB FUND B1

100.46

GAS OIL

USD

537.50

-3.00

STANLIB FUND A

99.78

NATURAL GAS

USD

2.63

-0.05

PAN AFRICA PATA+

10.43

10.75

KEROSINE

JPY

54850.00

-60.00

SHARIAH COMPLIANT SH

118.85

112.91

GENCAP IMAN

Thursday April 9, 2015 | BUSINESS DAILY

MARKETDATA DATA MARKET

Aged citizens to limit g≥owth of leading wo≥ld economies Advanced economies face limits on future growth due to the drag from aging populations, unless they can boost productivity through technology and infrastructure investment, the International Monetary Fund said. A higher proportion of aged citizens means a smaller workforce and lower potential output, which in turn could spell lower living standards in the future, the IMF said in a new study. The phenomenon of lower potential growth in economies is increasingly evident in some advanced economies, but also faces emerging markets like China where the average population age is also rising. The new study, part of the IMF’s semi-annual World Economic Outlook, seeks in part to explain why advanced economies have remained so turgid in the wake of the ﬁnancial crisis which began in 2008. Of the key inputs to growth, the supply of capital for investment has expanded, though more slowly than expected. But labour pools have grown even more slowly, as measured by the level of participation by a population in the active workforce. A key part of the reason for that is that more people have retired or will retire compared to the level of entrants into the jobs market. The result is a drag on the potential increase in output, or economic growth, the study says.

Emerging For advanced economies, potential economic growth, which was around 2 per cent before the crisis, fell to 1.3 per cent in the crisis years but will be only about 1.6 per cent through the rest of this decade, the IMF said. In emerging economies, potential growth will slip from 6.5 per cent in 2008-2014 to 5.2 per cent through 2020. This shift raises new challenges for governments. “In advanced economies, lower potential growth will make it more difficult to reduce high public and private debt ratios,” the IMF said. “In emerging market economies, lower potential growth will make it more challenging to rebuild fiscal buffers.” Countries can counter this drag with increasingly focused capital investment, the study noted. “Increasing potential output is a policy priority for advanced and emerging market economies,” it said. The prescriptions differ across economies, but focus mostly on the need to expand investment. But also, it said, “structural reforms and greater support for research and development are key to increasing supply and innovation. -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

44.25 -5.35%

Jul ‘14

Mar‘15 2.70 16.39 0.90%

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 34.50 7.49% 2.22%

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 -3546.43 0.10%

30.25 8.40 -3.20% -1.75%

Jul ‘14

USE All Share

July ‘14

Mar‘15

July ‘14

Mar‘15

Kenya Kenya

Jul ‘14

Mar‘15

43.00 -1.15%

11.75 799.00 0.00% 0.00%

Jul ‘14

July ‘14

Mar‘15 3.65 11.78 1.74%

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

Mumias KPLC Kenya

Mar‘15

14.452.30 0.35% 4.55%

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 -1.30 0.00% 0.00%

RSE All Share Rwanda

137.25 0.00%

34,156.46 -2.25%

2,668.04 0.00%

July ‘14

48.00 11.90 1.49%

Nigeria

Tanzania

2,055.00 -0.39%

52,870.58 0.52%

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) 5.194.04 Price to earnings ratio (p/e) Yield 2.64% Dividend Dividend Yield 23.81%

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) -26.54 27.66 Price DividendYield Yield 0.00% 2.25% Dividend

Unga 571.00 0.18%

993.00 -11.65%

Mar‘15

July ‘14

Mar‘15

World DJ Industrial

Xetra Dax 12,080.53 -0.35%

17,875.42 -0.03%

July ‘14

Mar‘15

July ‘14

Nikkei

HangSeng

Frankfurt

New York

Mar‘15

Mumbai 19,789.81 0.76%

26,236.86 3.80%

July ‘14

Sensex

Tokyo

Hongkong

July ‘14

Mar‘15

28,707.75 0.67%

July ‘14

Mar‘15

BUSINESS DAILY | Thursday April 9, 2015

MARKET DATA African Indices

Nairobi Stocks

NAME

NSE 20 Share Index

5,142.35 -0.72%

Nairobi

LOCATION

LAST

KENYA

5,142.35

-37.41

-0.72%

0.00

0.00%

6,119.53

274.89

0.52%

52,729.81

52,899.07

52,595.30

52,595.69

NSE 20 - SHR IDX LUSE ALL SHARE INDEX

2,055.00

-8.00

-0.39%

2,063.00

155.76

-1.03

-0.66%

156.79

21,183.64

-43.55

-0.21%

21,215.04

21,290.80

21,180.03

21,227.19

15,485.15

0.00

0.00%

15,485.15

TANZANIA

2,668.04

0.00

0.00%

2,668.04

NIGERIA

34,156.46

-785.33

-2.25%

34,941.79

33,990.33

34,941.79

5,300.00

CFG INDEX

MOROCCO

5,200.00

MALAWI ALL SHR

MALAWI

5,100.00

DSE ALL SHR IDX

5,000.00

NSE ALL SHARE/D

4,900.00

EGX 30 IDX/D

4,800.00

TUN MAIN INDEX

170.80 -0.20%

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

1,251.38 1.33%

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

March ‘15

Active Active Counters Counters Last fri

Prev fri

Price

Change

Total Shares Traded

Safaricom

15.95

15.90

0.31%

20,213,300

KCB

61.50

61.00

0.82%

4,563,700

9.05

0.00%

3,899,200

49.50 0.00%

2,690,000

49.50 2.30

2.20

Last fri

Prev fri

4.55%

917,800

Gainers Net

Price

Change

Counter

Price

Sasini

15.10

14.15

0.95

6.71%

Standard Grp

35.00

33.25

1.75

5.26%

Chng

Mumias

2.30

2.20

0.10

4.55%

Home Africa

3.50

3.40

0.10

2.94%

34.50

33.75

0.75

2.22%

Last fri Price

Prev fri price

Net Change

Eaagads

Losers Counter

% Chng

Limuru Tea

993.00

1,124.00 -131.00

-11.65%

Bamburi

149.00

159.00 -10.00

-6.29%

Pan Africa

121.00

128.00

-7.00

-5.47%

44.25

46.75

-2.50

-5.35%

3.70

3.90

-0.20

-5.13%

Scangroup Eveready EA

EGYPT

8,788.90

72.53

0.83%

8,686.69

8,788.90

8,555.03

8,716.37

TUNISIA

5,364.27

-20.66

-0.38%

5,384.94

5,394.86

5,364.27

5,384.93

RWANDA

137.25

0.00

0.00%

137.25

Daily Share Report

All Share Index (NASI)

Mumias

5,179.76

UGANDA

ZSE INDUSTRIAL

Equity

5,179.76

ZIMBABWE

ALSIUG

KenolKobil

LOW

5,179.76

6,119.53

5,400.00

Counter

HIGH

5,179.76

52,870.58

5,500.00

RSE ALLSHARE IND

OPEN

ZAMBIA

JSE ALL SHARE INDEX

March ‘15

PCT.CHNG

SOUTH AFRICA

5,600.00

July ‘14

NET.CHNG

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 REA VIPINGO 18.50 11.50 SASINI 319.00 240.00 WILLIAMSON TEA AUTOMOBILES & ACCESSORIES 62.00 31.00 CAR & GEN 13.60 8.00 MARSHALLS 9.40 5.20 SAMEER BANKING 18.45 15.05 BARCLAYS 155.00 104.00 CFC STANBIC 280.00 216.00 DTBK 63.00 31.00 EQUITY 55.00 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) 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 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

DAILY 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% 10.12% 12.90%

34.50 280.00 130.00 993.00 27.50 15.10 280.00

33.75 280.00 130.00 1124.00 27.50 14.15 280.00

2.22% 0.00% 0.00% -11.65% 0.00% 6.71% 0.00%

3,000 2,600 113,000 -

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

1,109,416,500.0 5,487,999,720.0 508,560,000.0 1,191,600,000.0 1,650,000,000.0 3,443,638,050.0 2,451,769,600.0

-1.30 8.17 32.21 -0.28 5.85 0.54 81.36

-26.54 34.27 4.04 -3546.43 4.70 27.96 3.44

2.76 1.89 0.37 4.84 0.74 0.55 0.39

0.00 3.75 5.00 1.00 0.00 0.25 7.00

0.00% 1.34% 3.85% 0.10% 0.00% 1.66% 2.50%

-8.33% 22.45% -4.17%

49.50 11.90 5.55

49.50 12.00 5.75

0.00% -0.83% -3.48%

100 31,300

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

1,985,113,746.0 171,277,961.4 1,544,800,281.2

6.57 -11.90 -0.24

7.53 -1.00 -23.13

0.95 0.44 0.66

0.60 0.00 0.00

1.21% 0.00% 0.00%

-1.50% 1.61% -0.43% -1.00% -18.58% 3.25% 7.02% -5.05% 0.00% 0.30% 5.00%

16.45 126.00 234.00 49.50 35.75 127.00 61.50 24.00 57.00 336.00 21.00

16.45 126.00 234.00 49.50 37.25 127.00 61.00 23.50 57.50 336.00 21.00

0.00% 0.00% 0.00% 0.00% -4.03% 0.00% 0.82% 2.13% -0.87% 0.00% 0.00%

904,200 2,900 108,900 2,690,000 42,900 1,300 4,563,700 10,000 101,200 7,300 301,400

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 8,428,062,500.0 49,829,978,953.0 183,530,003,058.0 6,720,000,000.0 36,476,899,371.0 103,877,596,704.0 102,675,642,195.0

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 8.49 9.37 10.92 7.72 8.06 10.12 12.80

2.76 2.16 2.46 3.56 1.38 2.27 2.87 0.55 1.76 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% 4.20% 2.28% 3.25% 0.00% 1.75% 5.06% 2.38%

-9.68% 0.00% -10.92% -7.57% -8.75% 3.31% -4.32% -8.11% 4.48%

5.65 20.25 7.45 8.40 240.00 44.25 35.00 34.25 10.35

5.60 20.25 7.75 8.55 240.00 46.75 33.25 34.00 10.50

0.89% 0.00% -3.87% -1.75% 0.00% -5.35% 5.26% 0.74% -1.43%

2,500 704,300 7,200 65,800 34,300 3,300 3,000 91,200

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

200,031,413.5 7,290,000.0 11,148,694,310.8 2,047,500,000.0 45,250,148,640.0 16,764,780,763.5 2,860,613,280.0 6,239,463,199.0 3,777,332,025.6

0.01 -18.34 -2.25 1.62 13.10 2.70 2.57 3.45 1.45

565.00 -1.10 -3.31 5.19 18.32 16.39 13.62 9.93 7.14

1.01 3.56 1.13 5.53 2.05 1.58 0.57 0.94

0.00 0.00 0.00 2.00 10.00 0.40 0.50 1.35 0.30

0.00% 0.00% 0.00% 23.81% 4.17% 0.90% 1.43% 3.94% 2.90%

-8.72% 14.39% 7.21% -4.32% 1.72%

79.00 149.00 119.00 15.65 59.50

78.50 159.00 119.00 15.50 59.00

0.64% -6.29% 0.00% 0.97% 0.85%

19,600 10,600 1,300 9,200 500

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

39,126,725,000.0 54,080,931,975.0 2,823,513,000.0 3,961,406,250.0 5,355,000,000.0

3.01 9.80 9.01 1.37 -4.30

26.25 15.20 13.21 11.42 -13.84

4.82 1.87 2.07 1.64 1.11

0.60 12.00 1.75 1.00 0.00

0.76% 8.05% 1.47% 6.39% 0.00%

5.83% 4.02% 20.42% 8.33% -9.52%

10.65 9.05 17.30 25.00 19.00

10.90 9.05 17.40 26.00 19.00

-2.29% 0.00% -0.57% -3.85% 0.00%

345,900 3,899,200 829,800 1,300 -

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

23,412,549,506.4 13,319,438,860.0 33,760,379,878.5 4,375,717,650.0 30,853,682,095.0

1.29 0.74 3.31 2.26 1.34

8.26 12.23 5.23 11.06 14.14

0.34 2.00 0.78 0.86 3.37

0.40 0.20 0.50 0.70 0.90

3.76% 2.21% 2.89% 2.80% 4.75%

-12.61% -1.04% 26.67% 9.09% 7.53% 6.67%

25.00 9.50 571.00 18.65 25.00 121.00

26.00 9.50 570.00 18.60 25.00 128.00

-3.85% 0.00% 0.18% 0.27% 0.00% -5.47%

208,300 350,800 800 72,600 28,300 9,800

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

48,460,395,950.0 24,847,616,016.0 34,200,045,000.0 13,054,050,118.2 13,392,687,475.0 11,616,000,000.0

1.47 0.43 48.00 4.48 2.14 9.07

17.01 22.09 11.90 4.16 11.68 13.34

2.79 3.07 3.20 0.73 2.53 3.48

0.30 0.10 8.50 0.70 0.50 0.00

1.20% 1.05% 1.49% 3.75% 2.00% 0.00%

-0.82% 8.65% -6.46%

60.50 5.60 18.25

60.50 5.65 18.10

0.00% -0.88% 0.83%

99,800 7,200 7,300

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

40,259,227,387.5 224,000,000.0 5,115,191,687.0

4.54 0.38 1.06

13.33 14.74 17.22

1.99 0.28 0.96

0.00 0.00 0.40

0.00% 0.00% 2.19%

19.55

19.65

-0.51%

59,100

194,625,000

3,804,918,750.0

2.13

9.18

5.21

0.38

1.94%

0.00% 6.40% -12.00% -4.60% 5.19% 5.41% 1.82% 12.82% 9.43%

11.10 133.00 799.00 20.75 324.00 3.70 112.00 2.30 43.00

11.10 133.00 799.00 20.75 324.00 3.90 112.00 2.20 43.50

0.00% 0.00% 0.00% 0.00% 0.00% -5.13% 0.00% 4.55% -1.15%

13,100 1,100 15,100 18,400 19,500 917,800 3,900

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

42,624,732.6 2,596,884,318.0 79,900,000,000.0 5,288,178,751.0 256,210,891,344.0 777,000,000.0 1,441,229,888.0 3,519,000,000.0 3,255,481,539.0

-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 -4.35 746.67 -1.30 11.78

1.78 10.55 3.20 9.38 2.40 589.47 0.33 0.69

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% 1.74%

13.17%

15.95

15.90

0.31%

20,213,300

40,065,428,000

639,043,576,600.0

0.57

27.98

7.98

0.47

2.95%

-17.07% -

11.30 9.30 3.50 1500.00

11.40 9.45 3.40 1500.00

-0.88% -1.59% 2.94% 0.00%

200 89,300 349,300 -

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

4,893,614,080.9 1,505,361,277.2 1,418,393,620.0 153,408,000.0

-0.04 0.92 0.05 -62.40

-282.50 10.11 70.00 -24.04

0.00 0.92 0.00 0.00

0.00% 9.90% 0.00% 0.00%

MKT CAP. KSHS

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

Thursday April 9, 2015 | BUSINESS DAILY

MARKET DATA

MARKET DATA Equities & Bonds Kenya Treasury and Infrastructure Bonds

Share Price Performance Scorecard SCORECARD AS AT 8TH APRIL 2015 NAME A BAUMANN ATLAS DEVPNT & SPPRT SERV ATHI RIVER MINING BAMBURI BARCLAYS KEN BAT KENYA BOC KENYA BRITISH AMERICAN CAR & GENERAL CARBACID INV CENTUM INV CFC STANBIC BANK CIC INSURANCE CO-OP BANK CROWN BERGER DIAMOND KEN EA CABLES EA PORT CEM EAAGADS EA AFR BREW EQUITY BANK EVEREADY EA EXPRESS KEN FLAME TREE HLDNGS G WILLIAMSON HUTCHINGS BIEMER HOME AFRICA LIMITED HOUSING FIN I&M HOLDING JUBILEE HLDS KAKUZI KAPCHORUA KEN ORCHARDS KENGEN KENYA AIRWAYS KENYA COM BK KENOLKOBIL KENYA POWER KENYA RE KURWITU LIBERTY HOLDINGS LIMURU TEA LONGHORN MARSHALL MUMIAS SUGAR NAIROBI SECURITIES NATION MEDIA NATL BANK KEN NIC BANK OLYMPIA CAPITAL PAN AFR INS REA VIPINGO SAFARICOM SAMEER AFRICA SASINI SCANGROUP STANDARD GRP STD CHART KEN TOTAL KENYA TPS (EA) TRANSCENTURY UCHUMI SUPER UNGA GROUP

PREVIOUS 11.10 11.40 78.50 159.00 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

CLOSE 11.10 11.30 79.00 149.00 16.45 799.00 133.00 25.00 49.50 20.75 60.50 126.00 9.50 21.00 119.00 234.00 15.65 59.50 34.50 324.00 49.50 3.70 5.65 9.30 280.00 20.25 3.50 35.75 127.00 571.00 280.00 130.00 112.00 10.65 7.45 61.50 9.05 17.30 18.65 1500.00 25.00 993.00 8.40 11.90 2.30 19.55 240.00 24.00 57.00 5.60 121.00 27.50 15.95 5.55 15.10 44.25 35.00 336.00 25.00 34.25 18.25 10.35 43.00

% 1D 0.00 -0.88 0.64 -6.29 0.00 0.00 0.00 -3.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.97 0.85 2.22 0.00 0.00 -5.13 0.89 -1.59 0.00 0.00 2.94 -4.03 0.00 0.18 0.00 0.00 0.00 -2.29 -3.87 0.82 0.00 -0.57 0.27 0.00 0.00 -11.65 -1.75 -0.83 4.55 -0.51 0.00 2.13 -0.87 -0.88 -5.47 0.00 0.31 -3.48 6.71 -5.35 5.26 0.00 -3.85 0.74 0.83 -1.43 -1.15

% 5D 0.00 -0.88 0.64 -6.88 0.00 0.13 -1.48 -7.41 0.00 -4.60 -3.97 0.00 -3.55 -1.18 0.00 -3.31 -2.19 0.85 6.98 2.53 -4.81 -5.13 0.89 1.09 0.00 0.00 9.38 -5.30 0.00 0.35 0.00 0.00 0.00 5.97 -8.02 1.65 -2.16 -3.08 0.81 0.00 0.00 -11.65 -3.45 -0.83 -4.17 -1.76 -2.04 0.00 -4.20 -5.08 0.00 0.00 -6.18 0.91 5.23 -3.80 -8.50 -2.61 -4.76 1.48 0.00 2.48 -3.37

% 1M 0.00 -5.83 -4.82 -1.97 -3.24 -10.22 -13.64 -14.53 -8.33 -23.15 -4.72 -0.79 -13.24 5.26 -10.53 -4.88 -1.26 -0.83 -13.21 4.18 -6.60 -9.76 -9.60 13.41 -3.45 0.00 -10.26 -12.27 2.42 10.87 30.23 -7.80 1.82 9.79 -32.27 3.36 -9.50 11.97 5.67 0.00 4.17 -2.36 -11.11 6.25 -26.98 -1.26 -10.45 -8.57 -12.98 -16.42 3.42 0.00 9.62 -9.76 15.71 0.57 -10.26 -1.47 -4.76 -5.52 -2.41 -15.51 -1.71

% 3M 0.00 -7.38 -3.66 6.43 0.92 -11.32 5.56 -9.91 -7.48 -6.74 -3.20 1.61 -2.56 10.82 -0.83 -4.49 -2.80 5.31 -8.61 5.19 0.00 2.78 -5.83 10.06 12.00 0.00 -12.50 -21.86 4.10 25.49 53.85 -5.80 1.82 9.79 -17.22 9.82 4.02 7.12 6.88 0.00 6.38 28.79 -23.29 13.33 15.00 -6.90 -12.73 -3.03 -9.52 -7.44 3.42 0.00 16.00 -13.28 16.60 -3.80 -1.41 -0.59 -6.54 -4.86 -3.95 -2.36 8.18

% 6M 0.00 -11.73 -0.67 -3.52 -7.63 -17.90 -23.08 20.00 -22.43 0.00 -2.33 -15.93 -3.45 -0.83 -10.00 1.95 -16.20 -4.83 18.25 -1.98 4.23 -30.67 -6.67 0.00 0.00 -26.67 -7.30 34.99 27.27 -13.33 0.90 -1.84 -16.76 4.24 -4.23 16.89 1.91 14.94 13.06 -65.00 10.19 15.00 -14.07 -22.83 -12.73 -18.57 -43.43 -1.63 0.00 24.12 -14.62 0.33 -3.80 4.48 -1.18 -20.00 -7.43 0.00 0.49 -16.50

% 1Y 0.00 -7.06 -25.13 0.92 40.18 -5.00 38.89 59.68 -37.59 63.51 17.76 0.00 5.00 40.83 2.63 -1.26 -34.97 18.97 25.10 54.69 7.25 25.56 5.66 0.00 0.00 2.88 0.00 84.19 147.79 -9.72 2140.00 -9.36 -42.25 33.70 -10.40 14.57 0.00 57.23 60.16 -35.38 19.00 -29.23 -21.82 -11.11 -8.80 28.74 0.00 0.00 29.15 -20.71 -11.18 -3.80 27.27 6.67 3.09 -18.45 0.00 -28.87 86.96

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE

APRIL 1ST 2015

ISSUE

MATURITY

ISSUED VALUE COUPON

DATE

IN MILLIONS

(%)

TRADED YIELD

ISSUE NO.

PREVIOUS PRICE (%)

TOTAL VALUE TRADED (KSHS)

TWO YEAR BONDS FXD 3/2013/2YR

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

98.9033

101.1994

FIVE YEAR BONDS FXD 1/2010/5YR

24-MAY-10

18-MAY-15 11,924.85

6.9510

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

FXD 1/2013/5YR

29-APR-13

23-APR-18 20,240.75

12.8920

104.5871

FXD 2/2013/5YR

1-JUL-13

25-JUN-18 26,340.05

11.3050

100.3825

FXD 3/2013/5YR

25-NOV-13

19-NOV-18 14,937.80

11.9520

101.6262

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

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

FXD 3/2008/10YR

29-SEP-08

28-SEP-18

4,151.60

10.7500

94.9482

FXD 1/2009/10YR

27-SEP-09

15-APR-19

4,966.85

10.7500

96.1897

FXD 1/2010/10YR

26-APR-10

13-APR-20 19,394.15

8.7900

86.1135

FXD 2/2010/10YR

1-NOV-10

19-OCT-20 18,849.90

9.3070

91.4516

FXD 1/2012/10YR

25-JUN-12

13-JUN-22

16,803.75

12.7050

FXD 1/2013/10YR

1-JUL-13

19-JUN-23

12,643.05

12.3710

FXD 1/2014/10YR

27-JAN-14

15-JAN-24

30,520.25

12.1800

25-SEP-06

11-SEP-17

4,031.40

13.7500

107.2197 12.2000 12.2000

100.3153

100,000,000

99.0594

200,000,000

ELEVEN YEAR BONDS FXD1/2006/11YR

97.6357

TWELVE YEAR BONDS

Corporate Bonds APRIL 1ST 2015

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE ISSUE MATURITY ISSUED VALUE COUPON DATE DATE IN MILLIONS (%)

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

PREVIOUS PRICE

TOTAL VALUE TRADE (KSHS)

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

2,917.10 1,250.80

13.5000 12.7500

105.2550 99.9620

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

1,480.60 196.50 1.00

13.2500 13.6000

99.1677 100.0000

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

500.00 4,239.70 760.30

12.7500 12.7500

100.7057 100.0000

1,300 700

11.5000

99.4819 85.5534

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

FXD2/2013/15YR

29-APR-13

10-APR-28 17,385.85

12.0000

91.7296 12.7000

90.7330

200,000,000

97.0362

621.50 1,378.50

13.0000

100.0000 100.0000

TWENTY YEAR BOND

97.91 2,402.09

100.0000 100.0000

FXD1/2008/20YR

30-JUN-08

5-JUN-28

20,360.95

13.7500

12.5000

FXD1/2011/20YR

30-MAY-11

5-MAY-31

9,365.80

10.0000

100.0150

FXD1/2012/20YR

26-NOV-12

1-NOV-32

43,082.72

12.0000

13.2000

93.0683

150,000,000

FXD1/2012/20YR

26-NOV-12

1-NOV-32

43,082.72

12.0000

13.1403

93.0683

100,000,000

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

15,625 200.00 4,287.00 4,287.00 2,969.10 1,166.50 5,864.40

12.5000 8.0000 8.0000

93.8370 99.6932 96.5610

13.0000

100.0000

THIRTY YEAR BOND

8.5000

100

112.6478 79.8372

TWENTY FIVE YEAR BOND FXD1/2010/25YR

SDB 1/2011/30YR

3,429.00 226.00

12.8000

100.0000

INFRASTRUCTURE BONDS IFB 1/2009/12YR

23-FEB-09

8-FEB-21

19,726.85

12.5000

105.1593

6,000.00

13.0000

100.0000

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

2,000.00

13.0000

99.9807

5,514.50

12.5000

100.0000 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

11.1000

IFB 1/2013/12YR

30-SEP-13

15-SEP-25

38,841.68

11.0000

11.0566

88.4106 102.1102

5,000.00

13.0000

5,080.00

12.9500

100.0000

IFB 1/2014/12YR

27-OCT-14

12-OCT-26 35,060.55

11.0000

98.4647

7,000.00

12.7500

100.0000

IFB 1/2015/12YR

30-MAR-15

15-MAR-27 25,695.35

11.0000

97.3156

9,047.35

12.2500

99.6845

99,900,000 300,000,000

BUSINESS DAILY | Thursday April 9, 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 92.46 137.18 100.30 7.82 32.17 19.97 7.39 16.56 25.17 74.10 95.97 77.09 10.69 11.49 13.42 1.48 11.93 68.10 24.65 14.90 70.92

SELL 92.64 137.50 100.52 7.84 32.34 20.12 7.53 17.13 25.23 74.26 96.17 77.27 10.71 11.52 13.45 1.49 11.95 68.27 24.70 14.93 71.08

MEAN 92.55 137.34 100.41 7.83 32.25 20.04 7.46 16.85 25.20 74.18 96.07 77.18 10.70 11.51 13.43 1.48 11.94 68.19 24.67 14.91 71.00

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

FTSE 100

Europe’s Blue Chips

Currencies

BID 1.09 119.76 1.49 0.96 0.77 1.24 8.62 7.99 1.77 6.88 53.59 2.59 135.72 62.23 3.70 25.15 272.77 23.50 3.93 128.96 1.80 59.99 0.40 11.70 2.23 1.49 7.00 185.71 2.85 0.51 17.50 56.40 3.41 4.05 21.55 110.29 475.00 3.67 107.98 1,530.10 0.10 909.00 99.97 6.20 177.00 97.38 7.63 20.35 3.81 42.60 15.00 7,000.01 685.00 92.60 457.00 84.00 11.79 1.37 9.84 3,050.00 311.00 428.83 36.00 199.00 13.18 200.02 2,025.50 1.54 4,298.00 21,873.00 704.00 11.79 32.53 1.95 1,850.00 2,970.00 603.79 603.73 35.90 11.79 378.00

ASK 1.09 119.77 1.49 0.96 0.77 1.24 8.63 8.00 1.82 6.88 53.64 2.59 136.04 62.24 3.70 25.20 273.00 23.55 3.94 129.48 1.80 60.19 0.40 11.71 2.25 1.49 7.01 185.76 2.85 0.51 17.90 56.98 3.42 4.06 21.60 110.73 478.00 3.67 108.98 1,580.10 0.10 939.00 101.47 6.20 178.00 97.70 7.63 20.56 3.86 43.60 15.50 7,500.01 696.00 92.80 458.00 85.00 11.81 1.37 9.90 3,134.00 319.00 448.66 36.72 199.10 13.84 201.02 2,035.60 1.54 4,398.00 23,232.00 711.00 11.82 32.55 1.95 1,860.00 2,980.00 610.79 609.73 36.20 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

ROYAL DUTCH SHELL A

UNITED KINGDOM

INTEGRATED OIL&GAS

2094

69.5

3.43

2.92

-2.8

-5.21

BHP BILLITON

UNITED KINGDOM

GENERAL MINING

1470.5

2.72

-2.45

5.9

-23.65

BP PLC

UNITED KINGDOM

INTEGRATED OIL&GAS

454.85

2.71

2.54

10.7

-6.25

BASF

GERMANY

COMMODITY CHEMICALS

95.07

2.43

2.62

19.96

UNILEVER CVA

NETHERLANDS

FOOD PRODUCTS

40.31

0.93

2.36

3.68

23.5

35.62

RECKITT BENCKISER GRP

UNITED KINGDOM

NONDURABLE HOUSEHOLD PRODUCTS

SANOFI SA

FRANCE

PHARMACEUTICALS

5960

128

2.19

1.71

14.4

23.7

95.78

2.05

2.19

4.46

26.6

26.38

NOVARTIS AG

SWITZERLAND

PHARMACEUTICALS

98.2

2.1

2.19

2.08

6.3

31.9

ROCHE HOLDING PART. CERT.

SWITZERLAND

PHARMACEUTICALS

272.3

5.8

2.18

3.46

0.9

2.75

DIAGEO

UNITED KINGDOM

DISTILLERS&VINTNERS

1929.5

2.06

1.82

4.4

5.24

DEUTSCHE TELEKOM

GERMANY

MOBILE TELECOMMUNICATIONS

17.38

0.35

2.06

31.2

53.98

UNILEVER

UNITED KINGDOM

FOOD PRODUCTS

2914

2.03

2.21

10.9

14.77

CREDIT SUISSE GROUP AG

SWITZERLAND

BANKS

26.85

0.51

1.94

3.47

7.1

-8.21

NATIONAL GRID

UNITED KINGDOM

MULTIUTILITIES

893.3

16.4

1.87

1.34

-2.7

9.21

ING GROEP

NETHERLANDS

BANKS

14.11

0.24

1.73

5.46

30.2

31.52

BAYER

GERMANY

SPECIALTY CHEMICALS

141.2

2.4

1.73

47.44

STANDARD CHARTERED

UNITED KINGDOM

BANKS

1094.5

1.67

-0.77

13.7

-13.44

BRITISH AMERICAN TOBACCO

UNITED KINGDOM

TOBACCO

3631

1.51

2.22

3.7

9.25

SCHNEIDER ELECTRIC SE

FRANCE

ELECTRICAL COMPONENTS&EQUIPMENT

74.99

1.1

1.49

3.97

23.7

15.23

VODAFONE GROUP

UNITED KINGDOM

MOBILE TELECOMMUNICATIONS

225.4

3.2

1.44

0.31

1.2

2.85

UBS GROUP

SWITZERLAND

BANKS

18.8

0.26

1.4

3.07

3.18

ANHEUSER-BUSCH INBEV

BELGIUM

BREWERS

117.3

1.6

1.38

4.73

50.52

GLAXOSMITHKLINE

UNITED KINGDOM

PHARMACEUTICALS

1591

21.5

1.37

15.6

0.79

ASTRAZENECA

UNITED KINGDOM

PHARMACEUTICALS

4707

1.33

0.45

3.3

20.15

NESTLE

SWITZERLAND

FOOD PRODUCTS

74.1

0.95

1.3

1.37

1.6

9.78

LLOYDS BANKING GROUP PLC

UNITED KINGDOM

BANKS

80.1

1.02

1.29

1.33

5.6

5.15

SIEMENS

GERMANY

DIVERSIFIED INDUSTRIALS

102.15

1.3

1.29

4.2

BARCLAYS

UNITED KINGDOM

BANKS

258

3.25

1.28

5.63

5.69

L’AIR LIQUIDE

FRANCE

COMMODITY CHEMICALS

121.3

1.5

1.25

0.96

17.9

23.71

ALLIANZ SE

GERMANY

FULL LINE INSURANCE

165.5

1.22

20.5

35.93

LVMH MOET HENNESSY

FRANCE

CLOTHING&ACCESSORIES

165.55

1.22

2.03

25.2

37.55

DEUTSCHE BANK

GERMANY

BANKS

33.15

0.38

1.14

32.7

2.62

AXA

FRANCE

FULL LINE INSURANCE

24.17

0.26

1.07

2.72

25.9

24.08

BT GROUP PLC

UNITED KINGDOM

FIXED LINE TELECOMMUNICATIONS

447.6

4.7

1.06

-1.41

11.5

17.3

ABB

SWITZERLAND

INDUSTRIAL MACHINERY

20.96

0.22

1.06

2.59

-0.9

-9.38

PRUDENTIAL

UNITED KINGDOM

LIFE INSURANCE

1697

17.5

1.04

0.83

13.7

28.8

FINANCIERE RICHEMONT

SWITZERLAND

CLOTHING&ACCESSORIES

79.7

0.75

0.95

-0.25

-10.2

-7.91

SAP

GERMANY

SOFTWARE

67.7

0.63

0.94

16.2

16.28

HSBC HLDGS

UNITED KINGDOM

BANKS

586.9

4.6

0.79

1.45

-3.6

-3.87

BANCO SANTANDER S.A.

SPAIN

BANKS

7.12

0.05

0.69

2.8

3.32

Global Indices NAME

LOCATION

LAST

NET.CHNG PCT.CHNG

OPEN

HIGH

LOW

DJ INDU AVERAGE

NEW YORK

17,875.42

-5.43

FTSE EUROTOP 100

LONDON

3,240.50

7.61

-0.03%

17,884.32

17,983.12

17,871.21

17,880.85

0.24%

3,234.56

3,246.03

3,229.78

XETRA DAX PF/D

FRANKFURT

12,080.53

-42.99

3,232.89

-0.35%

12,109.85

12,122.32

12,053.48

12,123.52

CAC 40 INDEX/D

PARIS

5,149.27

-1.92

-0.04%

5,146.78

5,168.03

FTSE MIB/D

MILAN

23,634.83

-71.51

-0.30%

23,709.74

23,785.74

5,136.28

5,151.19

23,564.02 23,706.34

SMI PR/D

SWITZERLAND 9,268.74

7.99

0.09%

9,258.67

9,294.45

HANG SENG INDE/D

HONG KONG

26,236.86

961.22

3.80%

25,708.24

26,247.63

25,640.04 25,275.64

NIKKEI 225 INDEX

TOKYO

19,789.81

149.27

0.76%

19,729.70

19,845.53

19,693.63 19,640.54

9,243.33

9,260.75

ALL ORDINARIES

AUSTRALIA

5,928.31

35.11

0.60%

5,893.20

5,940.50

5,893.20

STRAITS TIMES/D

SINGAPORE

3,460.68

-4.94

-0.14%

3,470.03

3,470.30

3,453.25

3,465.62

SSE COMPOSITE/D

SHANGHAI

3,995.50

34.13

0.86%

3,976.53

4,000.22

3,903.65

3,961.38

S&P SENSEX/D

MUMBAI

28,707.75

191.16

0.67%

28,601.49

28,763.06

28,566.61 28,516.59

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 WHITBREAD/D KENYA AIRWAYS/D

LAST 1040.00 2964.00 1566.00 468.40 1597.00 743.50 1105.00 298.00 551.50 4702.50 532.00 257.02 3607.00 1230.56 852.00 1496.50 1892.00 464.90 1730.00 446.35 3331.00 261.80 1184.00 1132.00 2829.28 1759.00 1920.70 208.55 197.40 1185.75 702.50 303.70 359.15 292.60 1602.50 680.50 1171.00 590.28 540.50 594.00 2686.00 1281.00 3168.00 2598.01 253.13 3466.00 225.60 364.50 1278.00 284.87 79.88 564.50 555.00 200.06 895.50 7110.00 233.10 1015.50 584.00 1691.50 1447.00 6015.00 352.38 2045.00 1157.00 2091.50 585.50 2903.63 952.00 4813.00 432.90 3646.00 273.87 3283.00 2488.00 473.90 5444.95 483.10 1139.00 1171.00 146.20 1547.64 1103.00 2148.00 641.50 327.60 249.45 2896.00 967.15 513.00 225.20 5286.10 7.50

CLOSE 1025.50 2964.00 1559.00 465.40 1591.00 740.50 1102.00 293.70 561.00 4707.00 528.50 258.00 3631.00 910.40 848.50 1470.50 1882.00 454.85 1714.00 447.60 3357.00 259.50 1192.00 1133.00 2844.00 1782.00 1929.50 208.20 194.60 1150.00 705.00 303.00 362.50 290.65 1591.00 674.50 1167.00 586.90 537.50 591.50 2683.00 1290.00 3178.00 2600.00 257.00 3464.00 219.30 368.70 1276.00 283.10 80.10 559.50 561.00 198.30 893.30 7080.00 232.20 1016.00 581.50 1697.00 1443.00 5960.00 353.00 2094.00 1168.00 2208.50 586.50 2862.00 952.00 4826.00 431.60 3650.50 269.40 3278.00 2479.00 473.40 5385.00 483.40 1138.00 1155.00 146.80 1544.00 1094.50 2137.00 643.00 300.30 251.00 2914.00 962.00 509.00 225.40 5315.00 7.75

NET.CHNG 14.50 0.00 7.00 3.00 6.00 3.00 3.00 4.30 -9.50 -4.50 3.50 -0.95 -24.00 320.60 3.50 26.00 10.00 10.05 16.00 -1.25 -26.00 2.30 -8.00 -1.00 -15.00 -23.00 -8.50 0.20 2.80 36.00 -2.50 0.70 -3.30 1.95 11.50 6.00 4.00 3.40 3.00 2.50 3.00 -9.00 -10.00 -1.00 -3.90 2.00 6.30 -4.20 2.00 1.70 -0.22 5.00 -6.00 1.70 2.20 30.00 0.90 0.00 2.00 -5.50 4.00 55.00 -0.60 -49.00 -11.00 -117.00 -1.00 42.50 0.00 -13.00 1.30 -4.50 4.50 5.00 9.00 0.50 55.00 -0.30 1.00 17.00 -0.60 4.00 8.50 11.00 -1.50 27.30 -1.55 -18.00 5.50 4.00 -0.20 -30.00 -0.25

PCT.CHNG 1.41% 0.00% 0.45% 0.64% 0.38% 0.41% 0.27% 1.46% -1.69% -0.10% 0.66% -0.37% -0.66% 35.22% 0.41% 1.77% 0.53% 2.21% 0.93% -0.28% -0.77% 0.89% -0.67% -0.09% -0.53% -1.29% -0.44% 0.10% 1.44% 3.13% -0.35% 0.23% -0.91% 0.67% 0.72% 0.89% 0.34% 0.58% 0.56% 0.42% 0.11% -0.70% -0.31% -0.04% -1.52% 0.06% 2.87% -1.14% 0.16% 0.60% -0.27% 0.89% -1.07% 0.86% 0.25% 0.42% 0.39% 0.00% 0.34% -0.32% 0.28% 0.92% -0.17% -2.34% -0.94% -5.30% -0.17% 1.48% 0.00% -0.27% 0.30% -0.12% 1.67% 0.15% 0.36% 0.11% 1.02% -0.06% 0.09% 1.47% -0.41% 0.26% 0.78% 0.51% -0.23% 9.09% -0.62% -0.62% 0.57% 0.79% -0.09% -0.564 -3.23

Thursday April 9, 2015 | BUSINESS DAILY

LI E

SALES Access to info≥mation no longe≥ wo≥ks Page 29

TIGER TEAM

Woods has all the family suppo≥t Page 31

MANAGEMENT

Ga≥issa offe≥s oppo≥tunity to conf≥ont biases University attack challenged core values of the inviolability of life and sanctity of education Brooks, Huang, Kearney, and Murray that investors prefer to fund entrepreneurial ventures pitched by seemingly attractive BUSINESS TALK men over other individuals. Often when researchers collect data and present it to SCOTT BELLOWS those acting on their unconscious bias, the offending individuals become shocked and he tertiary education community embarrassed that they could behave in such a manner and have their own biases hurt stands in shock, dismay, and sympathy at the cowardly terrorist atotherwise worthy people. Over recent years, researchers Heilman tacks at Garissa University College. We and Haynes discovered how when women steadfastly unite with Kenyans to grieve succeed on teams, other participants actuthe departed and look bewildered at the ally attribute female success to often nonstaggering senseless loss of life. The attack challenged humanity’s core professional methods even when no such values of the inviolability of life and the evidence exists. Hebl, Bigazzi, Mannix, sanctity of education. I join academics and Dovidio found intense discriminaacross the nation to vow to teach the affecttion among certain minorities. ed displaced survivors who were violently Further, when good people realise their ejected from their educational dreams. discrimination is real, they often redefine As our sadness starts to harden into merit to justify their prejudice. An example might exist in an educational system righteous anger, let our nation not foster unconscious bias against certain ethnicities in Kenya obsessed with KCSE scores, but and religions. Unconscious bias stands in substandard schools in deep rural areas whereby students must compete on uneven contrast to dangerous outward stereotypfooting. The US, on the other hand, takes ing as described in Business Talk on July 19, 2013. Unconscious bias exists as a more into consideration the quality of school a subtle evil in our midst. student studies in when making university Ken Norton describes unconscious bias admission decisions rather than cutting off as preconceived notions created and reinall students not attaining a certain grade. forced by our environments The US, though, does not and experiences. The hupresent itself as a good exman mind constantly We may not know ample to the world in dealing with unconscious bias processes information, ofou≥ deep views as many conservatives there tentimes without our conand opinions o≥ deny the existence of racial scious knowledge. The thei≥ full impact bias by the nation’s police faster paced our jobs and and implications forces. Even this author, a lives and the more data we on us and othe≥s Caucasian Kenyan, when lack, the more our unconscious bias fills in the gaps traveling in the US notices in our perceptions. The bias that dark skinned individimpacts everything we do uals driving getting pulled from hiring and promotion over by police in dramatidecisions to where we want cally higher proportion than to live to who we marry to the lighter skinned people. prognosis we give patients to the grades we Unconscious bias rears its ugly head in assign. Implicit bias happens by our brains relation to gender, ethnicity, origin, sexumaking exceptionally quick judgments and ality, socio-economic status, and political assessments of people and situations withaffiliations, among many others. But where out us noticing. does unconscious bias come from? Where Authors Banaji and Greenwald highlight does it start? that unconscious bias exists even among Biases originate from our background, good honest people, not only among bigots. cultural environment, and personal expeWe may not even know our deep views and riences, like the Garissa attack. The Geena opinions or their full impact and implicaDavis Institute on Gender in Media conducted alarming studies on western media’s tions on us and others. bias favouring men over women. In short, In last week’s ‘Business Talk’ I highlighted Harvard University research from only 17 per cent of western media characters

Flags ﬂy at half-mast in honour of 148 people killed in Garissa by terrorists last week. SALATON NJAU

positively portray women. The more and more Kenyan families consume media online, on the radio, in the newspaper, and on the television, the more we open ourselves up to vulnerability. When media houses hire intelligent men but only concern themselves with the beauty of a female presenter, viewers notice the diﬀerence and internalise it even if we do not desire to do so. We then teach the biases to our children and co-workers.

Most educated Think only the less educated suﬀer from implicit bias? Wrong. Research found unconscious bias among the most educated in a society. Several experiments using CV shortlisting exercises have sadly highlighted bias by gender and ethnicity. In one such study, Yale University’s MossRacusin asked scientists to review a number of applications. The applications reviewed were identical, apart from the gender of the name of the applicant. The scientists preferred male candidates and exclaimed higher expectations of male success, quality of work, willingness to invest more in the male candidates, and willingness to pay the men a higher starting salary. Inasmuch, the scientists would lose out on the considerable labour pool of qualiﬁed women. The UK leads the world in bringing awareness to unconscious bias. Other nations highlight more direct observable forms of discrimination that register in their citizenry’s consciousness. Corporations must address unconscious bias or it takes root quietly under the radar and undermines any reforms for higher productivity. Companies must educate from the top.

Examine all aspects of your business. When making decisions, stop and think whether you have considered whether any bias crept in. Raise awareness, foster conversations among staﬀ, and initiate corrective action. Unfortunately, Africans experience national and personal unconscious bias. Do we see global vigils in solidarity with the Garissa victims? Do we see sustained outrage against terror like #JeSuisCharlie in France? Surely the hallowed halls of an educational institution rival the purity of freedom of the press? Except that one occurred in the majority Caucasian capital city of a Western power and the other in a rural town populated by Africans. The world expects Africa to sustain human misery. The media reinforces it. Families around the world pray for the “starving children in Africa” before their own sumptuous meals. So, if we abhor the unconscious bias against our nation and continent even by well-meaning and good intentioned global citizens, then let us not harbour it within our own government bodies, businesses, and charitable institutions. In summary, let us all remember the Garissa tragedy as an attack on our beloved fellow citizens as well as our Kenyan way of life as we say #148notjustanumber. But let the terrorists not change us into vile creatures with our own uncontrollable bias. Prof Scott is the director of the New Economy Venture Accelerator at USIU’s Chandaria School of Business; www.ScottProfessor.com. info@scottprofessor.com or follow on Twitter: @ScottProfessor.

In next week’s edition of Business Talk, we explore ‘Basics of Business Plan Writing: Part 10’. Read current and prior Business Talk articles on the Business Daily’s website and www.usiu.ac.ke/blog/businessdaily .

BUSINESS DAILY | Thursday April 9, 2015

Life: ENTERPRISE BAD DREAMS Big money and other questions worth paying attention to

Success questions that investo≥s should igno≥e S 4 uccess is something we’re all component of my day, every striving for at a basic human day? level. We need to be safe and If love is one of the basic human fed, which is ultimately a huge driv- needs we all need, then what part ing factor in our desire for money of your successful life will include as it provides a level of both of those time for relationships. Remember needs. We also need love and ac- this isn’t just about a spouse or complishment or acceptance, which partner, but also friends, family can also be influenced in part by and other important relationships in your life. money. Fostering authentic, supportive It’s easy to see why so many entrepreneurs might stop only at loving relationships takes time. As a level of income as being successful, an entrepreneur, you may think or a number of headcount at their that making money and working start-up, but those aren’t real met- on your business trumps all else, rics to measure yourself by forever. and in some respects when you’re It’s for exactly that starting out that reason you should will be true. really ask yourself However, you Loving, t≥usting what success means need to be sure ≥elationships with to get this part of beyond just money to guide yourself toward key people in you≥ your life in check true success as an enafter you’re operlife will lead to trepreneur. ating or lose it by a happie≥, mo≥e the wayside. . How much No entrepresuccessful life money does neur is an island. success mean? Loving, trusting Of course you want relationships with to make money. That’s key people in your part of the joy of entrelife will lead to a preneurship. No one would fault happier, more successful life. you for wanting to define a com. Does success mean flexponent of success with money, but ibility in my schedule and what does that mean for you? It’s OK to ask this question annually to how much time would I see how your definition of success want to work each day? can change, but never sacrifice the Some people will leave behind other components of your vision at the corporate world for the flexibilthe altar of profits alone. ity of entrepreneurship, only to find they’re working longer and harder . Does success mean a re- than they’ve ever worked in their lationship and how much lives. Entrepreneurship is a chaltime would that be as a lenging journey. This can be particu-

. How healthy will I be as a successful person and how much time does success allow me to devote to my health daily? How successful will you really be if you’re sick or unhealthy? You have to decide now and build into your life what lever of wellness you want to be a part of your total success. Make the commitment now to decide what kind of food you want to eat and what kind of movement you want to incorporate into your day, then commit to that routine. Success isn’t a destination, and neither is your health.

Potential entrepreneurs grapple with many questions, but some of them do not make business sense. larly true in the early years of getting your business oﬀ the ground. If you’re looking for a part-time gig, entrepreneurship probably isn’t for you. That being said, as you grow and your business scales, you are going

to have more time to pick and choose your day. Do you want a lot of time in the oﬃce, or are you seeking the Tim Ferriss dream of working four hours a week remotely? The kind of schedule you want will dictate the type of business you pursue and have a large impact on your success.

. What vision will I have achieved to be successful and how do I define it now? If you’re only about profit, then the how of your bottom line won’t be very important to your vision. However, if you have strong beliefs about the vision you want to create, think about that being incorporated into your success now. Take Toms for example. If Toms had just wanted to make shoes, it would never have come up with the one-for-one giving that is so integral to the brand. Because its founder’s vision was about giving back to communities in need, it was the giving back that was the most powerful motivator for the vision of success over the profits alone. This caused the company to have to make some crazy decisions in start-up mode, like not marketing shoes through traditional and expensive outlets such as TV. How will you define your vision and act toward it daily to reach true, self-defined success? -ENTREPRENEUR

HR desk may not have the keys to your dream job

any college graduates and people who want to change careers have a diﬃcult time getting the job they want because they lack experience. Here are eight tips on how to break free from this vicious cycle. 1. Choose what you want to do When you need the money, you need to take whatever you can get — but this doesn’t mean you have to stop looking for a better job. Determine what your skill sets and talents are and write down three jobs you’d like to have. 2. Volunteer If nobody will hire you because you lack the experience, your best bet is to

do some volunteer work to get some experience. A few hours a week can give you real-life skills that you can put down on your resume and will increase your chances of getting that job down the road. 3. Apply to small companies Large companies get a ton of job applicants when a position opens. This reduces your chances of getting a job because you’ll lose out to someone who has more experience. The trick is to apply for companies with between one and 20 employees. You’ll stand out more in the pool of applicants, and the manager may be more willing to train you. 4. Network, and be creative

As always ask your friends and relatives if they know of anyone who would hire someone with your background. You may get lucky and ﬁnd someone. It’s always important to let as many people as possible know that you’re looking for a job in a particular ﬁeld.

6. Don’t rely on HR Don’t spend too much time working with HR. Fill out the necessary applications and whatever is required of you — that’s all. Try to ﬁnd out who the manager in charge of the department you’d like to work for, and reach out to them.

5. Study favourite companies If you have two to three companies in mind, try to learn about their managerial structure. Determine how things work, who is in charge of making the hiring decisions, and then contact the appropriate people. Research the companies you’re interested in. If you graduated from college, check out your college’s career center and get some valuable information.

7. Be flexible, and look outward If you can’t find a job in a particular field, try to find something that might be similar. Spread out your job search net as wide as possible. The more companies you find that use your skills, the better. Remember, it’s all about building up your experience. 8. Keep updating your skill sets Get into the habit of updating your

Experience demands have locked out many fresh graduates from jobs. skills, even during a long job search. Learning how to use the latest computer software, for instance, will help you keep you current. -ENTREPRENEUR

Thursday April 9, 2015 | BUSINESS DAILY

Life: MANAGEMENT DIGITAL AGE A simple Google search all one needs to open news taps

Access to info≥mation is losing cu≥≥ency as the selling magic

Women can now break the entrepreneurial glass ceiling with ease

hen I became an entrepreneur, I was motivated by one thing: freedom. I wanted the flexibility to follow my dream. Entrepreneurship allowed me to do work that was engaging and empowering. I’m not alone. According to a Cox Business study, 61 per cent of women entrepreneurs started a business to be their own boss, and more than 50 per cent became entrepreneurs to have greater control over their future. So, what holds more women back from taking the plunge? Sometimes, a “good enough” life is itself a deterrent. College, the corporate ladder, a family: Often these things feel comfortable. “I was successful at a job that wasn’t really that difficult,” Linda Shesto, CEO of Pearl Aqua LLC, tells me. “When it was time to step into a new reality and become an entrepreneur, I wanted everything set up perfectly. I wanted the same formula for success.” But there’s no magic formula for entrepreneurial success, of course. Here, are five strategies to help you crush these types of entrepreneurial fears and succeed even as you step into the unknown:

SALES PITCH JOHN KAGECHE

he terrorist attack in Garissa was followed globally as it was happening yet newspaper sales are declining. How? Readers prefer other ways of consuming news, namely the ubiquitous phone, Internet and digital TV ofefring many channels. Many media houses have an app or a website. Some statistics put newspaper digital media reach at a staggering 82 per cent of online adult population in more mature economies. Singular access to information was the preserve of the traditional seller and so selling was dependent on selectively exposing buyers to information. That was then. Access to information is no longer the preserve of the seller and can no longer be his trump card. For instance, Googling will give you a plethora of information about the causes of pain in your lower back; joining a Facebook group of Lower Back Pain sufferers or tweeting #LowerBackPain will give you an avalanche of firsthand insights on the condition; regularly tuning into a medical TV channel and downloading an app to measure and manage the pressure you are applying to your lower back will shed further light. All this while, you have not gone to see the seller (doctor). When you ultimately do so, you are a walking encyclopaedia on lower back pain. You are still a lay person, yes; only, informed. The wise doctor will not handle you today as he would years ago. He is a second opinion; the Internet was the first! The full impact of equal access to information has not come full circle into this market yet. However, with an explosion of youth and Kenya touted as an IT hub, the time is nigh. The progressive seller is wise enough to start evolving into this changing landscape. How? Finding other ways to connect with the buyer. Instead of the doctor feeling offended at being challenged by the patient based on his Google found knowledge, the wise one will explore. “How do you feel about what you read?” The patient (buyer) may have the information, and possibly successfully self medicated in the past, but he is still not a medical doctor. What he needs is acknowledgment of his interest and more importantly guidance (educating) on the pros and cons of what he is proposing for him to see. Insisting that “I’m the doctor” may win you the argument but will lose you

BottomLine

1. Quit seeking validation and embrace your crazy This is your business. It’s yours because no one else has had the vision you did to start it. Stop seeking validation before you launch a new product, programme or idea. The most successful people are those who were once believed to be crazy. 2. Celebrate even the smallest of wins To maintain a go-getter attitude requires positive reinforcement. Have you worked up the courage to make that call you’ve been putting oﬀ? Finally gotten through that stack of paperwork? Kick up your heels and celebrate. That energy will carry you forward. 3. Get speciﬁc Now that you’re trusting your own instincts and celebrating along the way, challenge yourself to break down your vision into smaller chunks. With the freedom to do what you want during the day comes the increased need to stick to a plan. What do you want to achieve this month — and what do you need to do this week to reach your goals?

future sales. A (buyer) car enthusiast at a bazaar will not be won over by the seller excitedly sharing the features of the Subaru; the buyer most probably knows them much more than you do. But because you know superior product knowledge does not translate to superior selling abilities, you take your phone and invite the buyer to access information and you arrive at a (guided) solution together. In traditional selling the examples shared were considered time-wasting. Not anymore. Acknowledgment, education and discussion towards building trust and connection are the new trump card.

A satellite transmission mast in Limuru: Today, sellers have to invest in guiding the potential client instead of dictating terms.

For as long as access to information is lopsided to the seller’s advantage, buyer beware will still trump. With information access being equal, seller beware comes to the fore. ***** Sales Pitch mourns with the bereaved families of the terrorist attack in Garissa and condemns the cowardly act. Whatever product they are selling, the price they are levying does not justify it. Kageche is lead facilitator at Lend Me Your Ears, a speech writing and sales training ﬁrm. lendmeyourears @consultant.com.

4. Making money is like making broccoli A mentor once told me that making money is like making broccoli: You’re not afraid of using up the broccoli in your fridge, are you? You know you can always get more. Similarly, if you’re committed to growing your business, you can’t be afraid to invest in your growth or do the things that excite you. Rather than worry about the money you’re spending, focus on making each investment worthwhile. 5. Decide to be grateful My dad used to say that no matter how good or bad you have it, there’s always someone who has it better than you and someone who has it worse than you. Comparison is the root of despair. Every day, we get to choose to be grateful for what we have, regardless of where we want to be. Like anything worthwhile, being an entrepreneur isn’t easy. All of us, however, can be grateful for the opportunity to pursue meaningful work and build a life we love. What more could we ask for? -ENTREPRENEUR

BUSINESS DAILY | Thursday April 9, 2015

Life: INVESTMENT

Mo≥ning ≥outine that will make you≥ wo≥kday mo≥e p≥oductive A s an entrepreneur, you’re no stranger to the 12-hour workday. You stay at the office until nine or 10 pm — or until you just can’t read another email —before you force yourself to go home for a hasty dinner, a little more work and a few hours of shut-eye. The next day, you get up and do it all over again. That was my life for 13 years. One day bled into the next until I finally decided I needed some balance. I wanted to make an impact with my business and have time for a fulfilling life outside of work. To transform my workday, I decided to start by transforming my morning. This 90minute routine has not only changed my life, but it’s also helped me have more meaningful, successful and productive days.

. Put oﬀ texting and e-mails When you grab your phone ﬁrst thing in the morning to check messages, your mind can’t help but shift into reaction mode. When you constantly check your phone, it can lead to increased stress, because you feel an immediate need to respond to demands. Before you know it, you’ve lost control of your day. Instead of letting others dictate your priorities, give yourself at least an hour to focus without external distractions.

. Give thanks Gratitude is a powerful way to put things into perspective. By acknowl-

Across 1 Film of Cleopatra (3,7,5)

3 Rule English brought in designed to meet needs of asylum seeker? (9)

9 One making lots of money ﬁxing races fraudulently? (9)

4 Learner driver banned from one of the Hebrides: what a surprise! (1,3)

10 At top-class university study British-born writer (5)

5 A Conservative meets trade union supporter? Really? (8)

11 Cartoon hero in colour at the start (6)

6 See little bird recoil with fear (5)

12 Game once played in London street (4,4)

7 Re-appends loose sheets inside cover of book (9)

13 Regret about getting imprisoned (6)

What you do immediately after waking up determines how your day will look like. edging the things that are working in your favour, the one thing that isn’t won’t seem as problematic. As soon as you wake up, say three things you’re grateful for to start your day with positive energy.

. Read your goals aloud You already know the importance of setting goals but reading the goals you’ve set for yourself helps ensure they don’t fall by the wayside. Every month, I set 30-day goals and write a letter to myself as if I’ve already achieved those goals. Every morning, I read this letter out loud.

. Nourish your body Just as your mental state in the morning sets the tone for the rest of your day, what you eat for breakfast helps determine what you’ll eat throughout the day. If you begin with a healthy breakfast, you’re

more likely to continue that trend. Remember: Your health is everything. It deserves more attention than those e-mails.

. Get moving A good morning workout is invigorating, especially if you have great music or a motivational podcast that gets you ﬁred up. I start my mornings with CrossFit — but running, yoga, weight training or even a brisk walk can be good for your health and make you more productive.

. Make time for yourself This may be the most important part of your morning routine. Take some time to be alone and enjoy it. You can use that time to meditate, read or teach yourself something new.

China wa≥ns on uncivilised behaviou≥ “China’s image has already been tarnished,” the China National Tourism Administration said on its website. The actions of badly behaved tourists has caused many people to “blush with shame” and people who behaved badly overseas needed to “learn a lesson”, it added. It did not specify the nature of any punishment. Regulators would hunt out bad behaviour through tips from local tourism bureaus, media reports

HO GWA S H T I ME S U P O M A Y O H A E P E N T AG R AM G O O D Y O N S E R S I NE ON L I GH T S LOO P A S B T E T O UNE N T HUS I AS T I C K O D E E S P R I MR O S E L E AG U E T E M T I A N S I T KA C AT HAR S I S N C W E L E E B U R MA P R E M I E R E D E E A N N C I A T HE OR EM R AME K I N

and the general public. In 2013, a Chinese student sparked an outcry in Egypt after scratching his name on the wall of an ancient temple in Luxor, while a mainland couple drew ire in Hong Kong for allowing their two-year-old child to defecate on a sidewalk. Thai authorities issued thousands of Chinese-language etiquette manuals in February after Chinese tourists were caught drying underwear at a temple.

15 Punishes people drinking about a litre (8) 18 Land reformer in Indian city taking new look round (8) 19 Deleted by Times editor (6) 21 Offhand, arrogant manner: one’s less familiar aspect (4,4) 23 Place in which I go for feast (3,3)

8 State of confusion among students about place (7) 14 One piece of advice about framing painting on wall (9) 16 Lawman’s family taken in by preacher (9) 17 Posh landlord initially did put up fence round about (3-2-3)

27 Ridiculous groom lies with bride (9)

18 Friendly with a female, leading to romance (7)

28 In West Germany he ﬂourished as a writer (6,9)

20 Hesitating to replace one article with another in journal (7)

26 Brother’s sick after ﬁsh (5)

22 Chap is worked up over girl brieﬂy (5) Down

24 Steer towards bend in lake (5)

1 Siren ensures worker has turned up on time (7)

25 Performs regularly in Albert Hall concert (4)

2 City showing some business enterprise (5)

SUDOKU PUZZLE

228

How to play

-ENTREPRENEUR

TIMES 24039

China will keep records of “uncivilised” behaviour by its tourists for up to two years, the country’s tourism agency said , to combat a spate of incidents abroad in recent years which it said reﬂected badly on the country’s image. Bad behaviour included violating customs, destroying public infrastructure and historic sites, causing disturbances on public transport and participating in gambling and prostitution, the agency said.

Here are seven steps to revolutionising your workday: . Wake up earlier An early-morning routine is powerful because it allows you to take time for yourself. In the early hours, it’s quiet, and there are fewer people vying for your attention. Many successful CEOs, including the former CEO of PepsiCo, begin their workday before 6 am, and if you can ﬁll those hours with something meaningful, it will set the right tone for your day.

TIMES CROSSWORD 24040 1

SUDOKU 227

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

Thursday April 9, 2015 | BUSINESS DAILY

Woods gets ﬁ≥m family suppo≥t, sets sights on beating ‘eve≥ybody’ MASTERS Daughter

Sam and son Charlie take on caddie duties Now ranked 111th, Tiger Woods appeared far more concerned about becoming the world’s number one dad on Tuesday than golf’s top player. Surrounded by his two children and ski champion girlfriend Lindsey Vonn, an at ease Woods seemed oblivious to the thousands of spectators gathered around the Augusta National practice green and looked more prepared to head out on a family picnic than make a headline-grabbing comeback at this week’s Masters. In many ways, the year’s first major will be a family outing for the Woods clan with the 14-time major winner scheduled to make a rare appearance in Wednesday’s par-3 contest where young daughter Sam and son Charlie take on caddie duties. Vonn will also be on hand to offer her support in the same way that Woods did for his dowhilling darling in Cortina, Italy and Vail, Colorado earlier this year when she made her run at the alpine skiing record books. Despite all the family friendly activities, this is very much a business trip for Woods and the former world number one made it clear his business is still winning golf tournaments. “I want to win,” declared Woods. “The whole idea is to prepare and do that, and I feel like my game is finally ready to go and do that again. “I worked my ass off. I worked hard. It was something people would never understand how much work I put into it to come back and do this again. “Competing is still the same. I’m try-

ing to beat everybody out there. That hasn’t changed.” Having missed the Masters last year while recovering from back surgery, Woods’ fitness troubles Tiger Woods smiles as he walks followed him into this season onto a green during a practice and he will be competing for round prior to the start of the the first time in two months 2015 Masters Tournament at after a self-imposed absence Augusta National Golf Club on from the PGA Tour due to poor Monday. AFP form. During his last competitive round at Torrey Pines on February 5, Woods walked off the course after 11 holes with his face contorted in pain, unable to bend over and pick up his own tee. But back at Augusta National, the 39-yearold American has been spotted dancing on the practice range, his grimmaced expressions replaced by a confident gaze and an engaging smile. Set to play in his 20th Masters, Woods possesses an undeniable comfort level at Augusta that is reflected by his four green jackets.

It’s special Woods has made every eﬀort to make himself even more at home by playing practice rounds on Monday and Tuesday with one of his oldest and dearest friends, 1998 Masters winner Mark O’Meara. He has Vonn and his children at his side while the par-3 contest, once an unwanted distraction, is something he is now looking forward to nearly as much as the Masters itself. “My two little ones are going to be out there with me. It’s special,” said Woods. “As I said, this tournament means so much to me in so many diﬀerent ways. “It’s nice to be able to share these things with my family and it just means the world to me. They are excited, I’m excited and can’t wait to go out there.” -REUTERS

Sepp Blatter (left) and Issa Hayatou at the 37th CAF Ordinary General Assembly on Tuesday. AFP

Af≥ican football p≥esident aﬃ≥ms suppo≥t fo≥ Blatte≥

he president of the Confederation of African Football (CAF) Issa Hayatou has affirmed Africa’s support for outgoing FIFA president Sepp Blatter who at 79 years is seeking a fifth term in office. Blatter, whose leadership has been plagued by scandal, has headed FIFA since 1998, and is now competing against three rivals for the top world football job — Jordanian Prince Ali bin Al Hussein, Dutchman Michel van Praag and former Portugal star Luis Figo. “His action in favour of Africa speaks for him. To us, he is still the man of the situation,” Cameroonian Hayatou said at the start of CAF’s two-day general assembly in Cairo attended by Blatter. Blatter brought the World Cup to Africa for the first time in 2010 and FIFA’s financial support has helped keep many African national federations afloat.It would be a shock if Blatter failed to garner all 54 African votes in the May 29 election in Zurich. Hayatou, 68, recalled that the executive committee of CAF had in September “initiated a motion of support for the candidature” of Blatter that resulted in “an exhortation made to all 54 member federations of CAF to guarantee their votes to him when the time comes.” “Dear Sepp, Africa is comfortable having you, she stays with you!,” Hayatou said, according to an official English translation of his speech made in French. Blatter’s three rivals also attended the twoday CAF meeting as observers. -AFP

SPORTS BRIEFING Martina Hingis returns to Fed Cup following 17-year absence Swiss tennis legend Martina Hingis is set to return to Fed Cup duty following a 17-year absence after being called up by captain Heinz Guenthardt. Hingis, 34, will compete in the World Group play-offs against Poland at Zielona Gora on April 18-19. The former world number one has not played Fed Cup since the 1998 ﬁnal which Switzerland lost to Spain in Geneva. Hingis must play the women’s team competition if she wants to compete in the 2016 Olympic Games mixed doubles, perhaps alongside Roger Federer.

Martina Hingis of Switzerland and Sania Mirza of India. AFP

Hingis won ﬁve Grand Slam singles titles between 1997 and 1999, 43 WTA Tour singles crowns and was once world number one during her prime. After six years in retirement, she gradually felt her way back on to the doubles circuit, but stopped a second time in November 2007 following a positive test for cocaine. Since her second come-back in 2013, Hingis only competes in doubles and this season won the Australian Open mixed doubles with Leander Paes and the Indian Wells and Miami doubles titles with Sania Mirza.

Phelps upbeat, goes back to the pool after suspension Michael Phelps will return to competition next week in Arizona after serving a sixmonth suspension following a drunkendriving conviction, USA Swimming said. Phelps will be joined by Olympic gold medalists and world-record holders Katie Ledecky and Ryan Lochte at the April 15-18 Arena Pro Swim Series at Mesa. “My suspension is ﬁnally up! Time to get back in the pool and race again! Looking forward to #mesa !!” Phelps, the most decorated Olympian of all time, said on Twitter. It was at Mesa in 2014 where Phelps re-

turned to competition after his two-year retirement. His latest absence from the sport, however, was enforced when he was arrested last September after speeding, crossing the double-lane lines inside a Baltimore tunnel and subsequently failing a Breathalyzer test. Phelps, 29, checked into a rehab facility following the arrest and is still serving 18 months of probation.

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S.Sudanese ﬂee to UN camp In a sign of worsening problems in South Sudan, convulsed by civil war and intensifying hunger for more than a year, the United Nations (UN) said Tuesday that an increasing number of displaced South Sudanese are seeking shelter and protection at its peacekeeping outposts. Stéphane Dujarric, a spokesman for the UN 26,000 had sought sanctuary at a base in Upper Nile State.

Girl, 15 attempts to join IS

New party in Zimbabwe

Genocide ﬁles declassiﬁed

A South African (SA) girl was taken off a plane in Cape Town on suspicion of planning to join Islamic State (IS) militants, a minister said. Her relatives contacted authorities after she disappeared from her parent’s home on Sunday, the minister added. In February, local media reported that a South African had joined IS in Syria, and was trying to recruit other South Africans via social media. It was the ﬁrst reported case of a South African joining the group. The 15-year-old had been taken off a British Airways ﬂight, and had been “returned safely to her parents,” State Security Minister David Mahlobo told South Africa’s privately owned eNCA news channel.

An expelled member of Zimbabwe’s ruling party says a new party will be formed to challenge President Robert Mugabe. Didymus Mutasa told the BBC the new party would also be called Zanu but the initials PF would stand for “People First” not “Patriotic Front”. Zanu-PF expelled Mr Mutasa and other senior members after accusing them of plotting to oust Mr Mugabe last year. They denied the claim.

France has declassified documents relating to the Rwandan genocide, the president’s office has said. The files, including advice given to thenPresident Francois Mitterrand, will be able to be viewed by researchers and victims’ groups. The mass killings in 1994 claimed more than 800,000 lives, mostly ethnic Tutsis and moderate Hutus. France has admitted making mistakes over the genocide but denies Rwandan claims of complicity. Last year France pulled out of 20th anniversary commemorations after the Rwandan President, Paul Kagame, renewed allegations France played a direct role.

Al-Qaeda thrives in Yemen

Iranian leader backs pact

Prince Harry’s selﬁe warning

Al-Qaeda’s afﬁliate in Yemen is seizing territory, exploiting the recent turmoil in the country to capture areas in what has become a broad expansion by the Sunni extremist group, Defence Secretary Ashton B. Carter of the US said on Wednesday. Calling the situation “obviously very unsettled,” Mr Carter said that the war in Yemen had left a number of groups vying for power, including Al-Qaeda in the Arabian Peninsula, also known as A.Q.A.P. “A.Q.A.P.,” Mr. Carter said, “has seized the opportunity of the disorder there and the collapse of the central government.” He warned that the group had “ambition to strike Western targets.”

Mohammad Ali Jafari is the latest top Iranian ﬁgure to come out in support of tentative Lausanne agreement as room for criticism grows tighter. The commander of Iran’s powerful Revolutionary Guards has expressed support for the framework agreement that emerged from last week’s nuclear negotiations in Switzerland, a strong indication that senior ofﬁcials in Tehran, especially those in the military, are backing the ongoing talks. Under the Lausanne agreement terms, Tehran has agreed to dramatically roll back its nuclear programme in return for the lifting of economic sanctions. Iran has always maintained the programme is for peaceful purposes.

Prince Harry has warned Australians against taking a “selﬁe” with him during his one-month stint Down Under, saying he much prefers normal photographs. The 30-year-old British prince was warmly received by hundreds of fans in Canberra on Monday, including one teenage girl who wanted to have a photograph of herself with him in the background.

Environment NEWS

Malaysia’s controversial law Three years after abolishing detention without trial, the Malaysian government revived the practice on Tuesday with the passage into law of a highly contentious anti-terrorism bill that opposition leaders fear could be used against government critics. The bill, the Prevention of Terrorism Act, was passed early Tuesday by a vote of 79 to 60 after more than 10 hours of debate.

TOTAL SHARES TRADED EQUITY TURNOVER IN SH BONDS TURNOVER

2,384.57

2,389.54

37,397,800

36,341,100

913,014,557

775,509,612

1,316,900,000

1,821,500,000

TOTAL DEALS (BONDS)

TOTAL DEALS (EQUITY)

1,976

1,625

NSE 20 SHARE INDEX

5,142.35

5,179.76

NSE ALL SHARE INDEX

170.80

171.15

PINEBRIDGE INDEX

876.79

878.14

FTSE NSE KENYA 15 INDEX

229.04

FTSE NSE KENYA 25 INDEX

229.47

FTSE NSE KENYA BOND INDEX FTSE ASEA PAN AFRICAN INDEX

92.44

1,251.38

HE SAID “Integrity has no need of rules.”

- Albert Camus French Nobel Prize winning author (1913-1960)

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China’s ‘great wall of sand’ in sea

European satellite ready for Mars

Debris worries in Mediterranean

China’s is creating a “great wall of sand” in the South China Sea, a top US official says, leading to “serious questions” on its intentions. US Pacific Fleet Commander Admiral Harry Harris made the comments in a speech in Australia on Tuesday night. He said by pumping sand on to coral reefs and adding concrete, China had created “over 4 sq km of artificial landmass”.

The satellite Europe will be sending to Mars early next year is about to undergo its ﬁnal test programme. The Trace Gas Orbiter (TGO) will study the planet’s atmosphere, and drop a demonstration lander on to the surface to gain knowhow for a rover mission touchdown in 2019. Engineers at Thales Alenia Space (TAS) in Cannes, France, have led the construction.

Large quantities of plastic debris are building up in the Mediterranean Sea, say scientists. A survey found around one thousand tonnes of plastic ﬂoating on the surface, mainly fragments of bottles, bags and wrappings. The Mediterranean Sea’s biological richness and economic importance means plastic pollution is particularly hazardous, say Spanish researchers.

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