Radar Screen

Ideas & Debate

Life

Page 3

Page 9

Page 27

Pedestrian analysis stoking

fears that shillings in crisis

Kenya undergoing inspiring

tech revolution with Internet

How to start small business

without getting overwhelmed

TUESDAY, AUGUST 11, 2015

NO. 2158

DAY OF REFLECTION

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

Uhuu visit to
Uganda unlocks
tade in cheap
suga and meat
Kenya opens market market for sweetener
in return for relaxed meat export rules
BY NEVILLE OTUKI

Pensive inmates at the Nairobi Remand and Allocation Prison in Industrial Area during the International Prisoners Justice Day celebrations yesterday. The day is set aside to highlight the rights
of prisoners to humane treatment and respect for their dignity. BILLY MUTAI

NAIROBI

KRA eyes taxpayes bank accounts

BY ALLAN ODHIAMBO

The Kenya Revenue Authority is set

to link its automated taxpayers database to bank accounts of ordinary
citizens in a move expected to smoke
out thousands of tax evaders.
The Sh765 million database
known as Data Warehouse and
Business Intelligence oers a single
view of a taxpayers prole, linking
them with third party systems such

Scientists bet on new

tsetse y repellant to
boost food security
Pages 12 -13

and risk proling solution, to be

installed by 2017, will facilitate the
interfacing of KRAs systems with internal and strategic external systems
for information exchange.
Information gathered from such
sources will be used to analyse unreported activities of taxpayers, to
detect tax fraud, and to score and
rank risk proles.
Analysis and
KRA, Page4
matching of data

I have no doubt that it is not

gold o oil o othe pecious
mineals buied in ou soil
that will make us wealthy. In
ou young population, we
have the wolds most pecious
esouce,
PRESIDENT UHURU KENYATTA

The Kenyan authorities have maintained that Ugandan traders were importing sugar cheaply for repackaging
and exporting to lucrative markets such
as Kenya.
Uganda has strongly defended itself
against the allegation, arguing it has excess production capacity that can produce
sugar for export to the Common Market for
Eastern and Southern Africa (Comesa).
TRADE, Page 4
Foreign Af-

Churches, houses to go
in Mombasa road plans

ARM debt to Nigerian

nancier hits Sh5.3bn

Ex-CBK board members Kenya tops EA bloc in

face new job restriction impact investments

Publicinstitutions,churches,residential
housesandperimeterwallsareamong
820structuresthatwillbedemolished
topavethewayforconstructionofasixlanedualcarriagehighwayfromMombasatoMariakani. Page 6

CementmakerARMsdebttoLagosbasedAfricaFinanceCorporationhas
soaredtoSh5.3billion($52.9million)
or5.8percentmorethantheoriginal
amountof$50million(Sh5billion)the
firmborrowedin2012. Page 7

CentralBankofKenya(CBK)boardand
MonetaryPolicyCommitteemembers
onexitingtheirpositionswillrequireCBK
boardapprovalbeforetakingupnew
jobs,anewBillhasproposed.

Kenyahasbecomethetopregional
destinationforinvestorsputtingmoney
inimpactinvestmentsthattargetboth
socialandfinancialgains, anewstudy
shows.

Page 19

Page 21

BRIEFING

NEWS INDEPTH

as banks and utility rms for easier

determination of compliance.
KRA currently faces massive
challenges in tracking tax cheats
because it uses multiple databases
that hamper analysis and detection
of fraudulent behaviour, the authoritys project manager Yvonne Wafula
says in the latest publication of the
Treasurys Public Financial Management Programme.
The improved data matching

Kenya and Uganda have struck a deal allowing cheaper Ugandan sugar into the
Kenyan market, ending the long-running
feud over the trading of the commodity
across their common border.
The deal President Uhuru Kenyatta
signed with his Ugandan counterpart
Yoweri Museveni in Kampala also clears
the way for Kenyan traders to export beef
to Uganda under similar terms, deepening
the commercial ties between Kampala and
East Africas largest economy.
The agreements were signed during
Mr Kenyattas three-day visit to Kampala
where he held bilateral meetings with his
host Mr Museveni and addressed the Ugandan parliament.
Ministry of Trade ocials said they were
expediting issuance of import permits to
Ugandan sugar traders to enable them feed
the undersupplied Kenyan market.
Kenya has had a near diplomatic stando with Kampala over the Ugandan traders quest to export sugar to the regions
largest economy, arguing that the country
did not produce enough sugar to meet its
consumption needs and would therefore
not have excess to export.

BUSINESS DAILY | Tuesday August 11, 2015

TOP NEWS

Kenyans in Uganda
set to get Huduma
Cente State sevices

Cout suspends ape chages against MP Mwiti

BY SANDRA CHAO-BLASTO

The High Court has suspended criminal proceedings against Imenti Central legislator Gideon Mwiti (pictured), who is facing rape charges.
Mr Mwiti had led a judicial review application at the High Court
challenging his trial in the magistrates
court and seeking to stop the victims
lawyer from tendering any evidence
or acting as co-prosecutors, arguing
that this would interfere with his right
to a fair trial.
The legislator had also alleged that
the victims lawyers had tampered
with evidence. The MP was released
on a cash bail of Sh100,000 in April after denying charges of rape, intimidation and assault of a woman on March
21 in Westlands, Nairobi.
Justice Weldon Korir yesterday issued orders suspending the hearing of
the case in the magistrates court that

EFFICIENCY Move meant to offer services

to Kenyan students studying in the country

BY OKUTTAH MARK

The government plans to set up Huduma Centres (one-stop shops for select
State services) in Uganda to oer government services electronically to the
large population of Kenyan students
studying in the country.
The centres will provide services offered by institutions such as the Higher
Education Loans Board (HELB), the
National Health Insurance Fund
(NHIF) and also host an emergency
fund targeting destitute Kenyans living in the neighbouring country.
Uganda has for decades been an
education hub for Kenyan students.
More than 40,000 Kenyans are currently studying in Uganda.
Kenyan businessmen and companies are also top investors in Uganda,
with over 350 rms operating in the
country.
Enhancement of Kenyas diplomatic presence in Uganda will include
some components of Huduma services to address the needs of Kenyans
in Uganda. This directive was issued
after engaging with the diaspora community in Uganda. The modalities will
be worked out by the Foreign Aairs
(ministry), said Secretary of Delivery
in the Executive Oce of the President,
Nzioka Waita, yesterday.
President Uhuru Kenyatta was
in Uganda for a three-day State visit
where he met the Ugandan business community and the Kenyan
diaspora.
The president also addressed the
Ugandan Parliament yesterday. Mr
Kenyatta and his Ugandan counterpart
Yoweri Museveni also held bilateral
talks on trade and regional integration.
The Huduma Centres fall under the
Ministry of Devolution and Planning.

Since its launch the one-stop shop concept has received several awards in
recognition of its role in easing service
delivery to citizens and minimising
corruption.
Launched last November, the concept uses Postal Corporation of Kenya
(PCK) outlets across the country.
In the rst phase of the project in
Nairobi, citizens can now access 18
services from 10 dierent government agencies.
The project will be replicated in
46 counties to enable citizens access
services such as renewal of driving licences, issuance of duplicate identity
cards, processing of National Hospital Insurance Fund cards and having
stamp duty assessment done at the
outlets.
Processing of the documents is
currently done manually but this is
expected to be automated in the second phase when the government anticipates that most of its agencies will
have digitised their documents.
okuttah@ke.nationmedia.com

An article in yesterdays edition erroneously stated that newly

appointed director for Centum Capital Fred Murimi will be
reporting to Risper Mukoto, who was identied as the Centum
Capitals managing director.
The correct position is that Mr Murimi will be reporting
directly to the Centum Investment Company Group CEO,
James Mworia. Ms Mukotos proper title is managing director
of Centum Business Solutions.
We regret the errors, and apologise to Mr Murimi and Ms
Mukoto for any inconvenience caused.

Court suspends the hearing of the

case to allow for the MPs judicial review
application to be heard and determined.
was scheduled to start on August 19 to
allow for the judicial review application to be heard and determined.
The trial scheduled in the criminal court is hereby suspended pending
further orders of this court, he said.
Justice Korir said that the case
led by the Mr Mwiti challenging his
prosecution had raised weighty issues
for determination particularly on the
role of the victims lawyers in criminal
proceedings and he would consider

Stike theat

President Uhuru Kenyatta (left)

accompanied by his host Yoweri
Museveni when he arrived at Ugandas
Parliament in Kampala yesterday. FILE

CORRECTION

Reprieve

Nakuru

Health workers at the Nakuru Provincial General Hospital chant slogans at the hospital
yesterday. The more than 2,400 workers accused the county government of withholding their
promotions for over ve years and not paying salary arrears. SULEIMAN MBATIAH

Index to companies

Weekly Weather Forecast

East Africa

referring the case to chief justice Willy Mutunga for the appointment of
a multiple-judge bench. The victims
lawyer Wilfred Nderitu made an oral
application challenging the alleged
leakage of a condential report to the
media while it was yet to be presented
as evidence in the criminal case.
Mr Nderitu told Justice Korir that
an article published in one of the local newspapers last week had details
contained in a condential report yet
there were directions by the court to
preserve the identity of the victim.
The court cannot shut its eyes to
prosecution of the case in the media
at the expense of the victim, he said,
urging the court to summon the journalist over the same.
Through his lawyer John Khaminwa, the legislator countered that the
proceedings were not being heard before a jury and could be inuenced by
what was published in the media.

Monday

Tuesday

Wednesday

Thursday

Friday

Nairobi

Hi: 250C
Lo: 140C

Hi: 210C
Lo: 130C

Hi: 220C
Lo: 140C

Hi: 230C
Lo: 130C

Hi: 220C
Lo: 130C

Kampala

Hi: 260C
Lo: 150C

Hi: 250C
Lo: 120C

Hi: 250C
Lo: 120C

Hi: 260C
Lo: 140C

Hi: 260C
Lo: 130C

Dar-es-Salaam

Hi: 300C
Lo: 190C

Hi: 280C
Lo: 220C

Hi: 280C
Lo: 220C

Hi: 290C
Lo: 220C

Hi: 290C
Lo: 230C

Kigali

Hi: 250C
Lo: 160C

Hi: 270C
Lo: 120C

Hi: 270C
Lo: 130C

Hi: 270C
Lo: 140C

Hi: 270C
Lo: 140C

Bujumbura

Hi: 300C
Lo: 170C

Hi: 310C
Lo: 150C

Hi: 310C
Lo: 140C

Hi: 310C
Lo: 140C

Hi: 300C
Lo: 150C

This index of businesses mentioned in todays issue of the

Business Daily is intended to include all signicant references
to companies.
CBK...................................3,19

Atari ....................................18

KRA....................................... 6

S&P......................................19

KPMG ................................... 6

Kurwitu...............................19

Safaricom.............................7

Centum.............................. 20

cba ....................................... 8

UBS......................................21

Icipe ....................................12

ECB......................................21

Tuesday August 11, 2015 | BUSINESS DAILY

TOP NEWS
RADAR SCREEN

BY JARED OSORO

ECONOMY Currency behaving as expected given the economic circumstances and foreign exchange policy regime

Misplaced analysis stoking

feas that shillings in cisis
W
hat comes to your mind
when you think of all the
hullabaloo about the Kenya shilling in view of its fast depreciation over the past three months? Well,
Maggie May instantly springs to my
mind. Maggie May is not some awardwinning economist but the title of a
1971 song by Rod Stewart, a British
rock musician.
Poor Stewart had the misfortune
of being in a relationship with Maggie who was much older. Maggie had
lured Stewart out of school. Upon realising he was being used, he mustered
the courage to confront Maggie and
tell her that its late September and I
really should go back to school.
Perhaps a reection of his youth
and naivet, once he had made the big
decision, he was confronted by contradictory emotions. And he loudly
mused: I suppose I could collect my
books and get on back to school. Or
steal my daddys cue and make a living
out of playing pool. Or nd myself
a rock a roll band that needs a helping hand.
You must be wondering how the
tribulations of Stewart even remotely
relates to the crisis that the Kenyan
currency is currently facing. Or even
conclude that the story to the extent
that it is being told illustrates what
is precisely wrong with economists:
playing child games with matters so
grave that they should be solemnly
addressed.
I argue that this story has its place
in the current public debate on the
state of the Kenyan currency. Ex-

cept perhaps at the Central Bank of

xed or dwindling foreign resource
Kenya (CBK), much of the thinking
earnings capacity.
and commentary about the recent
The crisis is illustrated using an
developments in the Kenyan foreign
economy that has made a policy
currency market has been clearly
choice to have an exchange rate peg
meaning it has chosen to maintain a
pedestrian.
There has been evident preoccupasteady exchange rate with a major curtion with the so-called Sh100 per US
rency or basket of such currencies.
dollar psychological limit whoevers
The peg can be xed or crawling
psychology that is, for I dont know
in other words allowed to move
how this upper bound has been defrom time to time implying a curtermined. Any movement above this
rency crisis can be envisaged even in
casually imposed constraint, howan economy whose exchange rate has
some form of exibility.
ever marginal, has been depicted as
This is how a cura crisis.
rency crisis happens: the
Not wanting to be
government or its central
caught in this casualKenya has
bank takes a view that havness trap, I have spent
time to formalise my advisedly chosen a ing a peg insulates it from
thoughts on whether we fee exchange ate inationary pressure. So
have a crisis in our hands
when the currency is unnow that the nominal ex- and independent der speculative attack, the
change rate has hit and monetay policy authorities weight the net
surpassed Sh100 per US
while foegoing benets of shifting the peg
or defending it.
dollar. My starting point
any inuence on
is a revisit of an inuential
If the decision is to
esouces ow defend the peg, then
1996 essay by economist
Maurice Obstfeld, Mod- in and out of the the speculative attacks
els of currency crises with
may be sustained given
economy
self-fullling features,
that speculation against
published by the Euroa currency creates ecopean Economic Review.
nomic conditions for devaluation. If
Mr Obstfeld convincingly demonthe authorities insist on defending
strates that foreign exchange market
the peg on the back of a given level of
crises often happen when a currency
foreign resources, then there will be
is under speculative attack and there
a balance of payment crisis in form of
is a determination by the government
resources gushing out of the economy
or indeed the monetary authority
that forces the currency to yield and
such as the CBK in our case to debe in a free-fall.
So is the Kenyan currency in a crifend the currency even when the
sis? To be sure, it is worth mentioning
capacity to do so is confronted with

Central Bank of Kenya Governor

Patrick Njoroge when he appeared
before the National Assemblys Finance Committee last month. FILE
the obvious that the currency is not
under any form of peg. At the same
time, the currency is not under any
form of speculative attack. Those
who imagine that there is a crisis,
and therefore think that the currency needs some form of defending
clearly have their implicit, if mental,
peg xed or crawling.
What we have since the early
1990s is a oating exchange rate
regime. With that the CBK is clearly
aware of the policy options available
to it on the back of the fact that as long
as the fundamentals remain weak, the
shilling will be subjected to depreciation pressure. This can be inferred
from the current account decit
that has been widening on account
of weak exports and an increasing
import bill.
On that basis, the CBK is clearly
comfortable with a exible exchange
rate such that it neither has a preferred level (or range) of exchange
rate nor direction of adjustment as
long as either direction is not characterised by volatility. Is this policy
framework, indeed the choice that the
government made in the early 1990s,
well-grounded?
This is where Stewarts contradictory emotions become relevant. If he
chooses to collect his books and go
back to school, depending on how
talented he is, he can oer a helping hand at the rock and roll band
on a part-time basis; so must give up
playing pool for a living. If, however,
he chooses to steal his dads cue and
make a living out of playing pool, he
still can be in the rock and roll band
in any case the two may often be at
the same venue; so he just gives up going back to school. It is dicult to see
how he can venture in all the three.

In the same vein, the policy

choice around Kenyas exchange rate
framework is guided by the compelling thinking of economists Marcus
Fleming and Robert Mundell who
developed a model the so-called
Mundell-Fleming model of exchange
rates in the early 1960s that demonstrated that it is impossible to have
domestic monetary policy independence, managed exchange rates, and
free capital ows; you can meet no
more than two of these three objectives hence their ndings being
dubbed the impossible trinity or
the trilemma. This line of thinking
was championed by, among others,
Mr Obstfeld in the 1990s and was a
basis for policy counsel on exchange
rate regime choices.
Like in Stewarts case there is a
challenge in wanting to do all these
simultaneously, for they are desirable but contradictory. If the policy
choice is some level of control on the
exchange rate and let money freely
ow in and out of the economy, then
that will be at the expense of having no
control over interest rates in other
words foregoing independent monetary policy. If, however, the policy
choice is some form of control on interest rate and exchange rate, then
the economy will have no control of
capital inow and outow.
So the choice is two of the three options, and Kenya has advisedly chosen
a free exchange rate and independent
monetary policy while foregoing any
inuence on resources ow in and out
of the economy. This comes with the
advantage that exible exchange rates
are more resilient in the face of shocks
and are better able to distribute the
cost of adjustment between the external and domestic economy.
So if anybody asks and many do
what is happening to the Kenyan
shilling, the simple answer should
be that it is behaving as could be expected given the economic circumstances and the foreign exchange
policy regime.
If you see commentary to the eect
the CBKs monetary policy committees recent meetings coinciding with
the fast currency depreciation were all
about defending the currency and
we have seen many of those the
simple rebuttal is that the exchange
rate depreciation quickly lters into
ination which is the core mandate of
the CBK. Therefore policy response is
foremost targeting the consequences
of depreciation.
Granted, the currency deprecation
has led to the cost of imports some
of which are necessities increasing.
If, however, the depreciation is being
characterised as a currency crisis, all
you need to ask is: what crisis?
Mr Osoro is the director of
Kenya Bankers Association Centre
for Research on Financial Markets
and Policy

BUSINESS DAILY | Tuesday August 11, 2015

TOP NEWS

Uhuu deal opens

Kenya maket to
cheap Uganda suga
From Page 1

fairs and International under special safeguard measures that

Trade secretary Amina Mohamed said were supposed to end in January 2012
the slow pace of processing of permits but have since been extended annually
for Ugandan sugar exporters was be- at the request of Nairobi.
hind the stalemate, adding that the isUganda produces about 465,000
sue had been resolved.
tonnes of sugar against a consumpMrs Mohamed said the delays had tion of 320,000 tonnes, leaving it with
been caused by Kenyas re-organisa- a 145,000-tonne surplus.
tion of ministries and directorates in
Kenya produces 650,000 tonnes
the sector, including the Kenya Sugar of sugar against a demand of 860,000
Board which is now a unit within the tonnes, leaving a 210,000-tonne decit
Agriculture, Fisheries and Food Author- that is met through imports, according
ity (AFFA).
to the AFFA.
Kenyan authorities have
The AFFA, however,
in the past couple of years
maintained
yesterday
Ou political,
capped sugar imports at
that the agreement did
economic
300,000 tonnes to protect
not provide for free ow of
Ugandan sugar into Kenya
local millers.
and secuity
but a guided movement of
We have a decit of
patneship will
the lucrative commodity to
110,000 tonnes of table
prevent the ooding of the be key to ensuing sugar and import all our
Kenyan market and killing
that East Afica industrial sugar which is
local millers.
not produced locally, said
becomes the
The imports would
Mr Busolo.
hub that bings
have to be based on Kenyas
Mr Kenyatta and Mr
decit, said AFFA director- these two wolds Museveni yesterday undergeneral Alfred Busolo.
scored the critical role that
togethe
Uganda has continually
bilateral trade, investments
faulted Kenyas 2012 deci- PRESIDENT UHURU KENYATTA and security play in forging
sion to block sugar imports
regional integration.
from the neighbouring country in vioPresident Kenyatta cited the ecolation of the East African Community nomic benets East Africa would reap
(EAC) common market protocol, which from closer cooperation in areas such
provides for free movement of goods as infrastructure development and interconnectivity.
without restrictions.
Kenyas sugar market remains proKenya is undertaking major joint
tected from cheaper Comesa imports infrastructure projects with its neigh-

President Uhuru Kenyatta (right) and First Lady Margaret Kenyatta accompanied by
their host President Yoweri Museveni and First Lady Janet Museveni greet Uganda
members of parliament after addressing a special session yesterday. PSCU
bours, including the Lamu Port Southern Sudan-Ethiopia Transport (Lapsset)
corridor, the standard gauge railway
(SGR), an oil pipeline, an electricity pool
and a shared oil renery in Uganda.
Mr Kenyatta said the SGR, for instance, is expected to slice the cost of
moving cargo from Kenyas Mombasa
port to Kampala by 60 per cent and
cut the time taken from three days to
24 hours, resulting in lower commodity prices.
Our political, economic and security partnership will be key to ensuring that East Africa becomes the hub
that brings these two worlds together,
said Mr Kenyatta during his address to
Ugandan lawmakers.
Mr Kenyatta acknowledged the evergrowing socio-economic divide in the
populations of the two nations, saying
there was need to empower youth to
drive growth through innovation to
bridge the wealth gap.
I have no doubt that it is not gold or
oil or other precious minerals buried in
our soil that will make us wealthy. In our
young population, we have the worlds

most precious resource, he said.

Ugandan ocials have been pushing their Kenyan counterparts to open
the local market and help balance bilateral trade, which is heavily skewed
in favour of Nairobi.
Uganda bought Sh60.7 billion worth
of goods from Kenya last year, making
it the largest destination market, compared to Sh17.5 billion it exported to
Kenya, according to ocial data.
This is set to expand following
Ugandas decision to open its market
to Kenyas beef and related products
and Kenyas easing of sugar import
regulations.
We are going to put in place mechanisms to implement this directive as
soon as next week, Uganda Trade minister Amelia Kyambadde said, adding
that the decision had been reached despite Kenyas failure to enact the relevant legislation before opening the beef
market as had been agreed earlier.
Kenyan supermarkets and banks
have expanded their footprints to
Uganda, underlining the economic
signicance of the land-locked nation,

which has become rich in hydrocarbons

with more than three billion barrels of
recoverable oil.
Government records show that
about 350 Kenyan companies have a
presence in Uganda, with investment
portfolios in excess of Sh81 billion.
The Uganda Sugar Manufacturers Association (USMA) has in the
past accused powerful sugar cartels in
Kenya of using import controls to defeat competition, a situation that has
kept consumer prices articially high
in the regions biggest market.
Ugandas sugar is on average Sh30
cheaper per kilogramme compared to
Kenyas, according to the USMA.
In
August
2011, Kenya allowed Uganda to import sugar through
the port of Mombasa duty-free for six
months to help plug a decit. The only
rider was that the sugar would be exclusively for Ugandan market.

Dumping of sugar
Kenyan ocials thereafter raised the
red ag over increased dumping of
sugar from Uganda into its domestic
market for which the 100 per cent import duty had not been paid.
Under the EAC Common External
Tari (CET) structure, sugar attracts
duty of 100 per cent, a factor that
makes imports outside the trading
bloc expensive.
Mr Kenyatta said Kenya would
deepen its ties with Uganda to bolster
security in the region, critical for creating an environment for investments
and for tourism to ourish.
Ocials from the two nations are
also set to hold a forum to tackle pending issues such as standardisation for
tea and maize, access to Uganda of Kenyan cement and rice, EAC duty remission scheme and anti-malarial drugs
and charges of plant import permit.
notuki@ke.nationmedia.com

KRA eyes taxpayes bank accounts to catch tax evades

will provide insight
into nil and non-lers. Each taxpayer
will be uniquely identied to facilitate
the tracking of their activities, Ms Wafula says, adding that communication
with third party systems such as banks
would result in identication of more
taxpayers resulting into an expanded
tax base.
The Treasury has been under pressure to increase its tax collections to
fund several ongoing and upcoming
infrastructure projects, including a new
railway, and to pay for the devolved administrative units created in 2013 under
the new Constitution.
Eorts to raise more taxes have,
however, been frustrated by low level
of tax compliance in an environment
dominated by unscrupulous businesses
and individuals. The data warehouse is
expected to reduce the time that compliance ocers spend on data collection by
From Page1

Kenya Revenue Authority Commissioner General John Njiraini. FILE

up to 30 per cent, leaving more time for
enforcement.
KRA estimates that its compliance
and data analysis ocers currently
spend up to three hours daily gathering data to perform their duties.
A brief on the project said the Business Intelligence aspect will help ana-

lyse large amounts of data, and detect

anomalies that may indicate fraudulent behaviour and business risks as
well as hidden patterns that indicate
tax evasion.
Tighter electronic surveillance systems helped KRA realise a record Sh1.01
trillion in tax revenues for the year ended

June 30, 2015, but which was still lower

than the Treasurys Sh1.08 trillion target. The revenue performance for the
year 2014/15 was 3.86 per cent higher
than the Sh963.8 billion realised the
previous year but slightly lower than
the estimates.
In the 2011/2012 nancial year, KRA
collected Sh707.3 billion despite uncertainties ahead of the General Election
in March 2013. KRA has in recent times
adopted measures such as the electronic
i-Tax surveillance system to plug revenue
leaks. Treasury secretary Henry Rotich
said ordinary revenue collections for
2015/2016 are expected to hit Sh1.25
trillion.
This performance will be underpinned by on-going reforms in tax policy
and revenue administration. The KRA
is expected to institute measures to expand the revenue base and eliminate
tax leakages, he said.

The KRA said it had intensied audits on corporate rms during the scal
year, having discovered more than Sh25
billion in potential taxes from about 60
international companies that had from
2008 used transfer pricing to declare
losses when they made prots.
Transfer pricing happens when
multinationals sell to their parent or
subsidiaries abroad at lower prices
leading to declaration of lower earnings or even losses, and avoiding the
payment of billions of shillings in tax
revenues, KRA said.
If we have already been able to
achieve annual growth rate in tax revenue of 15 per cent for the last 10 years,
we should see even better achievement
in the future based on what we have put
in place and the actions that we are taking to also encourage Kenyans to partner
and work with us, KRA commissioner
general John Njiraini said.

Tuesday August 11, 2015 | BUSINESS DAILY

BUSINESS DAILY | Tuesday August 11, 2015

ECONOMY & POLITICS

Pyethum fames want new Agicultue ministe

BY BENARD OGEMBO AND
FRANCIS MUREITHI

Trucks in trafc. The upgrade of the Mombasa-Mariakani road is expected to signicantly reduce trafc grid locks in the costal city. FILE

Chuches, houses
to go in Mombasa
oad upgade plan

Pyrethrum farmers have raised the red

ag as a leadership vacuum at the Agriculture ministry delays plans to open
up the sector to more players.
Through their lobby, the Pyrethrum
Growers Association (PGA), the farmers have petitioned President Uhuru
Kenyatta to appoint a Cabinet secretary to drive the sectors liberalisation.
The sub-sector is undergoing turbulent times and farmers who had
trooped back to the farms are disappointed, and uprooting the crop due
to the delayed regulations, said PGA

Mr Felix Koskei, suspended Agriculture

secretary. SALATON NJAU

national chairman Justus Mochache

Monda. Agriculture secretary Felix Koskei stepped aside to allow for investigations into corruption allegations
levelled against him. He has since been
cleared by the Ethics and Anti-Corrup-

tion Commission.
Mr Monda said the proposed
regulations which must be taken to
National Assembly before August 27
were not youth and women friendly
and were likely to deter many prospective young farmers from venturing into
the lucrative sub-sector.
The proposed Pyrethrum Crop
Regulations are laced with colonial
hangover and are meant to oppress
farmers and as a farmers voice we
want the regulations to be amended,
said Mr Monda.
At the same time Mr Monda said
that there was no proper public participation before the regulations were
drafted.

Afican MPs to
discuss teo
theat at event

SCOPE 62 acres of occupied land to be acquired

for construction of six- lane Mombasa-Mariakani road

BY EDWIN MUTAI

2014 will not be compensated, the ofcials said. The date was set to lock out
Public institutions, churches, resispeculators who rush to build strucdential houses and perimeter walls
tures hoping to going from compensation, said Rose Oloo, a sociologist
are among 820 structures that will
who spoke to the residents.
be demolished to pave the way for
There was a notice that was put
construction of a six-lane dual carriage highway from Mombasa to
up last year announcing the cut-o
Mariakani.
date and we will stick to that. But
The National Land Commission
if there is extension past the points
will be required to acquire 25 hectares
that were marked, we will consult
(62 acres) of land over the 35 kilomewith members of the committee and
tre-stretch, to allow the Kenya Nathe chiefs to ensure that those who
tional Highways Authority (KeNHA)
deserve compensation dont miss out,
kick start the Sh22 billion
she added.
project mid next year.
Charles Njogu, KeNHA
corporate aairs manager
Yesterday,
KeNHA
ocials held meetings
At the moment said they expected that the
with residents of Mazarwe want to talk Germany Development
as to sensitise them on the
Bank would provide
course of the road and set to those who will Sh12 billion to nance
up a committee to address
the second phase of the
be aected to
compensation issues.
avoid unncessay project from Jomvu to
The road will be 60
Mariakani.
delays
metres wide but in some
The talks involve European Investment Bank
sections it will be 55 meCHARLES OBUON, KENHA
(EIB) and European Union
tres. We have already
PROJECT COODINATOR
Africa infrastructure Trust
secured Sh10 billion for
Fund (AITF), he added.
construction of the 11 kilometre
Conversion of the road into a dual
Mombasa-Jomvu section from the
carriage is aimed at reducing congesAfrican Development Bank (AfDB)
and are in advanced stages of negotiation on the road used by thousands of
tions with the German Development
trucks ferrying cargo from Mombasa
Bank for the funding of the remainport which often results to grid locks,
ing section, said Charles Obuon, the
holding people in trac jam for hours.
project coordinator.
Cargo passing through Mombasa port
At the moment we want to talk to
has been increasing by more than six
those who will be aected to avoid unper cent annually with the facility hannecessary delays since we have already
dling 24 million tonnes last year.
started tendering, he told residents
The Mombasa-Mariakani road
at Kaliangombe chiefs oce, addforms an important section of the
ing that KeNHA surveyors were curNorthern Corridor since it marks
the beginning of the trade route. Poor
rently on the ground authenticating
infrastructure within Mombasa has
the list of those to be aected, after
resulted to constant clogging of cargo
which the values of the property will
at Mombasa port, due to slow evacuabe announced.
However, those who put up struction of goods from the facility.
tures on road reserves after July 30
gmarete@ke.nationmedia.com

President Uhuru Kenyatta will this

morning open the 46th Commonwealth Parliamentary Association
(CPA) which brings together African
MPs, speakers and parliamentary ofcials from 18 countries.
The week-long conference at the
Safari Park Hotel in Nairobi seeks
to nd solutions to the problems
of terrorism and under-representation of women leadership in the
continent.
About 400 delegates are expected
to discuss the African parliaments
role in tackling terrorism and the
gender representation of women in
appointments and elective posts.
Kenyas Parliament will spearhead
the talks on terrorism, seconded by
Nigeria. The two states have witnessed a spate of terrorist attacks by
Al-Shabaab and Boko Haram militants respectively.

BY GITONGA MARETE

Prospective investors follow proceedings during a past investment conference. A

new survey places Kenya at position 65 out 127 in change management. JARED NYATAYA

Kenya anked top in EA

fo change management
BY LYNET IGADWAH

Private sector openness has kept

Kenya ahead of its East African
neighbours in the global ranking
of change management even as
the inexible state and civil society
continue to pull down the countrys
overall rating.
The Change Readiness Index
(CRI) prepared by consultancy
rm KPMG ranks Kenya at position 65 out of the 127 economies
surveyed globally.
The CRI measures how eectively a government, its private enterprises and civil society anticipate
and prepare for shocks, opportunities and risks.
Kenyas 2015 overall score represents a massive decline of 28
positions from the 2013 performance when the country ranked at
number 37.
KPMG ranks Kenya enterprises
ability to respond to change at the
47th position globally while the civil
society and government responsiveness are listed as number 65 and 84
respectively.
Rwanda is East Africas second
most responsive state to change at
position 69, Uganda third at position 74, Tanzania fourth at 78 while

Burundi is ranked number 125, the

third worst economy after Chad and
Guinea.
In terms of economic diversication and economic openness,
Kenya is however ranked roughly
the same as Uganda.
Some of the changes assessed by
CRI include risks such as technology, competition, changes in government; nancial, natural disasters and social instability shocks;
and opportunities of political and
economic nature.
Cambodia ranked 50th, leading
other low income countries in the
overall table.
The country was placed 34 in the
enterprise pillar, 4th in the economic diversication sub index and rst
in the informal sector index.
Mozambique, Rwanda, Uganda,
Cambodia and Tanzania are some of
the top countries with higher than
expected change readiness scores
based on Gross National Income.
Also featuring closely in this category are Philippines, Ethiopia, Somalia and Kenya.
Insights obtained from the CRI
show that high income inequality
is linked to low readiness while inclusive growth is strongly correlated
with change readiness.

Current challenges
National Assembly Speaker Justin
Muturi is the CPAs current president.
This years theme, Democracy
and Development in Africa: Policy
Options in the Post-Millennium Development Goals Framework has
been chosen to reect the current
challenges, ocials said.
Development is more sustainable and ecient in democratic
societies where the populace enjoys
various freedoms and choices, said
Mr Justin Bundi, National assembly
Clerk who is also CPAs Kenya branch
secretary.
Rwanda, the only country with
the highest number of women representation in leadership in the world
at 63.8 per cent compared to Kenya
which has been ranked lowest in the
East Africa at 19.7 per cent, will also
participate in the conference.

Tuesday August 11, 2015 | BUSINESS DAILY

CORPORATE NEWS
NEWS I REVIEWS I ANALYSIS

ARM debt to Nigeian nancie

hits Sh5.3bn on weak shilling
BURDEN Cement maker faces Sh900m forex losses on debt due to weak local unit

BY VICTOR JUMA

Cement maker ARMs debt to

Lagos-based Africa Finance
Corporation (AFC) has soared
to Sh5.3 billion ($52.9 million)
or 5.8 per cent more than the
original amount of $50 million
(Sh5 billion) the company borrowed in 2012.
The rise is mainly due to a
weakening of the shilling and
the Kenyan rms deferment of
interest payments on the loan.
The shilling has depreciated
to 101 units to the dollar currently compared to 83 units when
the loan was taken, resulting in
potential forex losses of about
Sh900 million.
Besides raising ARMs debt
burden, the increase in the convertible loan means AFC could
potentially take a bigger stake
in the cement manufacturer if
it opts to go for shares instead
of being repaid in cash.
The NSE-listed rm oered
updates on the AFC loan in its
latest annual report, noting
that the amount has been rising due to deferment of interest
payments.
The company capitalised
interest amounting to $1.3 million being total interest charged

ARM managing director Pradeep Paunrana (right) with chairman

Rick Ashley during the rms AGM in Naiorbi on July 10, 2013. DIANA NGILA
in the year which brought the
total amount owed to AFC to
$52.9 million, said ARM in
the report.
The debt had risen to $51.6
million (Sh5.2 billion) last year
following a similar move to
postpone interest payment,
freeing up cash for other uses
in the short term.
Analysts say capitalisation of
interest means the loan agreement allows for payment of both
principal and accrued interest
at the end or is a signal that the
borrower is not able to pay the
interest as they fall due.
Either the loan terms allow for a balloon payment or

the borrower is having some

diculty, said RSM Ashvir
consultancy partner Ashif
Kassam, who was not, however, commenting specically
on the ARM loan.
ARM chief executive Pradeep Paunrana could not be
reached for comment as his mobile phone was switched o.
AFC has the option to convert the debt into ARMs shares
at any time before September
2018 but the cement rms share
price has dropped to levels that
are currently below the pre-set
debt conversion price.
The ARM loan is redeemable
at a premium of 10 per cent AFC

also has the option of converting the debt into new ordinary
shares of the cement rm at a
xed rate of $0.64 (Sh64.4) per
share.
ARMs share price has,
however, dropped to below
the conversion level in the past
few weeks, closing at Sh61.5 yesterday. The stock has fallen 28
per cent since the beginning of
the year, having touched highs
of Sh92 in February.
A fresh rally in the share
price could oer AFC another
opportunity to convert its loan
at a discount that enhances
returns.
At a target price of Sh64.4,
AFC could take 82.9 million
shares equivalent to a 16.7 per
cent stake in ARM if it opts
to convert the debt currently
standing at Sh5.3 billion.
This is up from 78.4 million shares or a 15.8 per cent
stake if the principal had not
grown.
While recapitalisation of interest frees up cash in the near
term, it will increase the rms nance costs in the medium term
as the delayed cash payments
add to the principal which earns
interest quarterly.
vjuma@ke.nationmedia.com

KenolKobil MD David Ohana during a past event. FILE

KenolKobil net pot up

to Sh918m on cost-cutting
BY VICTOR JUMA

Oil marketer KenolKobil reported a 73 per cent jump in

net prot for the half-year ended June, helped by cost-cutting
measures that compensated for
lower sales.
The rm made a net prot
of Sh918.4 million in the period
compared to Sh531.1 million a
year earlier, a performance that
saw the company declare an
interim dividend of Sh0.1 (10
cents) per share.
Its revenue fell 19.2 per cent
to Sh34.8 billion, dipping Sh8.3
billion in absolute terms.
The cost of goods sold
(COGS), however, dropped
by an even larger 21.4 per cent
to Sh31.9 billion, boosting the
gross prot from savings of
Sh8.6 billion.
During the period, the
group continued to focus on
prot optimisation in all business segments together with
growth in volumes, Kenol said
in a statement.
This, coupled with eective inventory management,

saw the group register an eight

per cent increase in volumes in
spite of increased competition
in the market place, and improved gross margins.
Kenol also kept a tight lid on
other costs, saving Sh289.8 million as nance costs dropped
43.3 per cent to Sh379.4 million. This came as borrowings
declined to Sh8.5 billion from
Sh10.4 billion.
The company has said it
wants to have very little debt
by mid next year to avoid high
interest payments and forex
losses that have hurt oil marketers relying heavily on bank
nancing.
Kenol said it has sworn o
currency hedging despite its forex losses rising nine per cent
to Sh155 million on account of
regional currencies weakening
against the dollar.
It is the groups policy not
to take any foreign exchange
hedging positions, the company said, noting that its business
has a natural hedge of dollar
inows that osets the dollar
liabilities.

Safaicom leads the ace fo post-paid tai subscibes

BY OKUTTAH MARK

The number of mobile phone subscribers on post-paid tari plans increased

9.6 per cent in the three months to
March, a reection of users growing
preference for getting a handle on their
monthly communication spend.
Communications Authority of
Kenya (CAK) data for up to the end
of March shows that Safaricom added
80,393 post-paid subscribers in the rst
quarter, reaching 782,593 accounts.
Airtels postpaid tari added 2,266
accounts to lift the number of its subscribers to 151,286, while Telkom Kenyas Orange only managed 99 new accounts pushing its customer base to
3,164. Equitel, the telecommunications

Growing numbers
Safaricom added 80,393 subscribers,
Airtel 2,266 and Telkom Kenyas Orange
only 99.
Equitel is yet to start offering post-paid
services.

A woman makes a call. The number of prepaid mobile phone subscribers rose to 33.8
million in March, up from 32.7 million. FILE
arm of Equity Bank, is yet to start oering post-paid services. During the period under review, the total number of

postpaid customers hit 937,043 still

far below the total number of prepaid
subscribers that reached 33.8 million

in March, up from 32.7 million during

the corresponding quarter. Overall,
the number of pre-paid and post-paid
mobile subscriptions grew by 3.3 per
cent and 9.7 per cent respectively, reads
part of the CA quarter one report.
Safaricom gained 2.7 per cent and
11.4 per cent pre-paid and post-paid mobile subscriptions respectively during
the three months. Its total number of

subscribers grew by 3.0 per cent to stand

at 23.3 million, up from 22.6 million registered in the previous quarter.
Airtel recorded an increase in the
number of post-paid customers by 1.5
per cent to 151,286 subscriptions, up
from 149,020 accounts posted in the
last quarter.
However, the telcos pre-paid subscriptions declined to 6.8 million down
from 7.4 million subscriptions reported
in the preceding quarter. Consequently,
its total mobile subscriptions declined
by 7.8 per cent to stand at 7.0 million.
Telkom Kenya (Orange) experienced
signicant growth in the number of prepaid and post-paid mobile subscriptions, which increased by 12 per cent
and 3.2 per cent respectively.

BUSINESS DAILY | Tuesday August 11, 2015

CORPORATE NEWS
MINISTRY OF WATER AND IRRIGATION

KENYA WATER SECURITY AND CLIMATE RESILIENCE PROJECT

REPUBLIC OF KENYA

Project ID. P117635; Credit No. 5268-KE

CONSULTING SERVICES INDIVIDUAL CONSULTANT SELECTION

REQUEST FOR EXPRESSION OF INTEREST FOR WESTERN

KENYA PROJECT MANAGEMENT UNIT COORDINATOR
CONTRACT NO: MOWI/ KWSCRP-1/002/2015-2016
1. The Government of Kenya has received financing from the World Bank toward the
cost of the second phase of Kenya Water Security and Climate Resilience Project
(KWSCRP-1) and intends to apply part of the proceeds from this financing for payment
of Consulting Services for Western Kenya Project Management Unit Coordinator;
CONTRACT NO: MOWI/ KWSCRP-1/002/2015-2016
2. The Post -Reporting to the Project Manager, the Western Kenya PMU Coordinator
as head of PMU Western Kenya Regional Office is responsible for coordinating and
facilitating execution of the Program for Enhanced Water Security in the Nzoia River
of KWSCRP-1 - comprising the Lower Nzoia Irrigation, Lower Nzoia Flood Protection
Project and Nzoia Watershed Management - and for all KWSCRP activities in western
region of Kenya, working with the executing agencies through a joint coordination
mechanism.
3. For the detailed Terms of Reference for this assignment with specific objectives and
scope of the tasks, key deliverables, timing, competence and qualifications and other
requirements, please visit the ministry website www.environment.go.ke
4. The Ministry of Water and Irrigation (the client) now invites eligible individual consultants
to express their interest (EOI) in providing these services. Interested consultants must
provide their CVs and information indicating that they are qualified to perform the
services. The desired consultant must have the following skills and expertise:
(a) An advanced degree in Engineering/Water Resources or a comparable field;
(b) Be registered with Engineers Registration Board (ERB) and/or member of
Institution of Engineers of Kenya (IEK) or other similar recognized body;
(c) At least 20 years of directly relevant work experience in the planning, preparation/
design, and supervision of water resources investment projects and programs
including complex or large flood control infrastructure or irrigation projects;
(d) Experience with implementation of environmental and social standards for
infrastructure projects while additional experience with implementation of World
Bank or other environmental and social safeguards will be an advantage;
(e) Intensive experience in preparing and monitoring construction plans and schedules
for large-scale or complex water infrastructure projects;
(f) Experience of leading teams comprising multiple experts in various technical
disciplines of water infrastructure design and environmental/social experts;
(g) Direct experience working in Africa, generally, and Kenya, specifically, would be a
distinct advantage;
(h) A proficient working knowledge of MS office, MS Project and other relevant
software for technical analysis is essential;
(i) Fluency in English is essential and fluency in Swahili is desirable.
5. The duration for this position is expected to be one (1) year and will be subject to
annual extensions based on acceptable performance.
6. The attention of interested Consultants is drawn to paragraph 1.9 of the World Banks
Guidelines: Selection and Employment of Consultants [under IBRD Loans and IDA
Credits & Grants] by World Bank Borrowers [January 2011] (Consultant Guidelines),
setting forth the World Banks policy on conflict of interest.
7. Selection of an Individual Consultant will be in accordance with World Banks Guidelines:
Selection and Employment of Consultants [under IBRD Loans and IDA Credits & Grants]
by World Bank Borrowers, January 2011 revised July 2014 (Consultant Guidelines).
The selection criteria will be solely based on individual experience and qualifications.
8. Interested consultants may obtain further necessary information at the address below
during office hours between 0900 to 1600 hours from Monday to Friday excluding
lunch hour (1300 to 1400Hrs) and public holidays.
9. The completed expression of interest documents in writing in three (3) copies must
be delivered to the Tender Box on Ground Floor, Maji House or sent to the address
below as to be received on or before 9thSeptember,2015 at 1000 hours East Africa
Time. For expressions of interest that will be deposited at the tender box, the packages
should be clearly marked:CONTRACT NO: MOWI/ KWSCRP-1/002/2015-2016 for
WESTERN KENYA PROJECT MANAGEMENT UNIT COORDINATOR addressed to:
Project Manager
Kenya Water Security and Climate Resilience Program,
Ministry of Water and Irrigation,
Maji House, 4th Floor Room No. 453/456, Ngong Road,
P.O. Box 49720-00100, Nairobi.
Tel: +254 02 2716103 Ext. 42366/42335
Email: procurement.kwscrp@gmail.com

M-Shwai clients to
get mobile medical
consultation sevices
DEAL Commercial Bank of Africa and South Africas

Hello Doctor in mobile health pact

BY OKUTTAH MARK

The Commercial Bank of Africa (CBA) has partnered with

an international mobile-health
provider to oer its more than
11 million M-Shwari customers medical consultation services on their phones.
Under the partnership the
m-Health service provider
Hello Doctor, a subsidiary of
Metropolitan Health, will act
as an assistant to local general
practitioners (GP) when consumers want a quick healthcare reference.
M-Shwari customers will
download a Hello Doctor application which provides content that is updated daily, providing access to healthcare advice, answers to health-related
questions in live group chat
forums, condential one-onone text conversations with a
doctor, and the ability to receive a call back from a doctor
in less than an hour.
In a country where the
doctor-to-patient ratio currently stands at an alarming
one doctor to 100,000 patients,
the need for innovation in the
health sector is critical if hospitals and clinics are to oer
quality services, said promoters of the service in a statement. The Hello Doctor app
works on both smart and se-

Commercial Bank of Africa Centre in Upperhill, Nairobi. FILE

lected feature (basic) phones.

The service, to be launched today in Kenya, is already available in South Africa.

Not a substitute
M-Health is not meant to be
a substitute for consulting
a doctor but will assist the
overburdened and underresourced medical industry
by concentrating on a dened number of medical and
healthcare related conditions
that do not need a face-to-face
examination.
M-Health will free-up
general practitioners, clinics
and other healthcare institutions from dealing with nonlife-threatening conditions to
allow them more time to provide an in-depth examination,
the statement added. Mobile

Health (m-Health) is loosely

dened as the practice of medicine and public health, supported by mobile devices. CBA
runs the M-Shwari platform in
partnership with Safaricom.
Mshwari oers customers a
platform to save money on
their mobile phones.
The m-Health launch
comes at a time when the
government is working on
a Health Bill which seeks to
establish a unied health
system to coordinate the inter-relationship between the
national and county governments health systems, provide
for the regulation of healthcare services and healthcare
service providers, as well as
health products and technologies.
okuttah@ke.nationmedia.com

Kenyan goup buys out two micolendes

BY SIMON CIURI

A Mauritius-based nancial
services rm, Premn Capital,
which is owned by a group of
Kenyan investors, has acquired
two micronance companies
in Tanzania and Uganda.
The two rms, Gatsby
Micronance in Uganda and
ve Fanikiwa Micronance
in Tanzania, have a total of 11
branches in the two countries.
Premn Capital is headquartered in Mauritius with an
investment portfolio spread
across the region.

The rm is owned by Platcorp Holdings and Afrosuez

Investments Ltd according
to information availed by its
management. Platcorp Holdings is also associated with
NSE-listed investment rm,
Centum.
James Mugambi, who is
a one of the shareholders of
Premn Capital Limited and
the current Managing Director of Premier Credita local micro-lender that targets
small and medium-sized enterprises told the Business
Daily on Thursday that the

acquisition seeks to broaden

their investment portfolio and
accelerate growth.
The new expansion involves acquiring six branches
of Gatsby Micronance in
Uganda and ve outlets of
Fanikiwa Micronance in
Tanzania, with an intention to
increase our operations in the
region, said Mr Mugambi.
We also saw a credit gap
to ll in and enter into the
market with a credible organisation that we share the
same business values, said Mr
Mugambi.

Tuesday August 11, 2015 | BUSINESS DAILY

IDEAS & DEBATE

OPINIONS I REVIEWS I ANALYSI S

Kenya undegoing inspiing tech

evolution with access to Intenet

Other Voices
Ronald Reagan
Former US President

CONNECTIVITY Use of

TV white space to link

rural residents to Wi-Fi
will spur development
BY SATYA NADELLA

We recently changed our mission

statement at Microsoft to empower
every person and organisation on the
planet to achieve more. Last week, in
Kenya, I had a rsthand opportunity
to see this mission in action.
We often read about the world being at, with people having access to
information from everywhere. The
reality is that thats not always the
case for the four billion people in the
world who dont have access to the
Internet or the economic opportunity
that comes with connectivity. This is
the situation for a majority of rural
Kenyans. And as I saw last week, they
are hungry for connectivity to pursue
their livelihood and passions.
Richard Thanki is an economist
from the UK I met last week in Kenya,
where he is researching the impact
of connectivity there. I doubt it will
surprise people to learn that he has
found that the vast majority of residents think aordable access to the
Internet will improve their lives and
the lives of those around them. Maybe
more poignant, however, is his nding that the prevalent notion among
the people there is that without online
access, youre separate from the global
community.
As an industry, its beholden upon
those of us who work in the tech sector to bridge this digital divide to
democratise access, and therefore, information and knowledge. The world
will have a brighter future if kids in rural Africa have the same access to the
Internet as kids in rural America, or
kids in urban areas everywhere.
This isnt simply altruism. The fundamental argument is that connectivity helps on two fronts: with skill
development and entrepreneurialism. When you have Internet access,
you improve gross domestic product
(GDP). In fact, for every 10 per cent
growth in Internet access, the GDP
growth in a country is likely to increase
by 1.38 per cent.
Personally experiencing this last
week in Kenya was inspiring. I saw the
impact of a disruptive technology, TV
white spaces, that is providing connectivity in rural Africa and in a collection

Students access the Internet provided by the Mawingu White Space Project in Nanyuki. FILE
of countries around the world and
before, such as walking to a dierent
in the same way the PC democratised
town solely to send an email, now can
computing, this technology has the
be accomplished in ve minutes. This
potential to democratise Internet acconnectivity is empowering everyone:
cess across the planet.
farmers, students, teachers, entrepreneurs. I visited an Internet caf there
TV white spaces transmits a wireless Internet signal using the underulocated inside a solar-powered shiptilised broadcast bandwidth abundant
ping container connected to Mawinin most countries, including rural Kengu wireless using TV white spaces.
ya. A local startup, Mawingu (means
The rst person I met was an entrecloud in Swahili), is using this techpreneur, Chris Baraka, who, thanks to
nology, along with solar power, to bring
the connectivity in the caf, is making
the Internet to schools, the local gova living as a writer. This simple shipernment, the Red Cross, a healthcare
ping container is his oce. He is now
clinic and young entrepreneurs.
teaching under-employed youth in ruThis technology is fast and reliable,
ral Kenya how to make money from
and its changing the lives of the peothe Internet. Each day he is taking the
abstract idea that connectivity can lead
ple who live there. Microsoft helped
to GDP growth and is making it real.
launch this eort nearly three years
ago in partnership with
And in a place that some
Mawingu as part of
might regard as a remote
As an industy,
corner of the world, he
our 4Afrika initiative,
its beholden
which aims to improve
was living on the cutting
global competitiveness
edge of technology.
upon those of
in Africa.
Chris was hardly the
us who wok in
This technology is
only person putting the
the tech secto
not only disruptive,
Internet to good use.
to bidge this
Farmers come by the conbut its also aordable
digital divide
tainer, known as the Soand has essentially
lar Cyber, to check marcreated a market for
ket prices on crops. They are making
bringing low-cost connectivity to
good use of a powerful tool not only
rural Kenya. Mawingu installs solar
cells to power Wi-Fi hot spots that are
for knowing what to grow and when
linked together with TV white spaces
to sell, but also for circumventing the
connections. It sells connectivity for
charges of a middleman who controls
that information today.
$3 (Sh300) per month, and even in a
rural area with very limited nances,
With connectivity comes agency.
it is nding that this is aordable to
We saw this again and again in Nanpeople and even enabling them to
yuki. And it was perhaps the clearest
grow their own incomes.
when I saw the impact of technology
In Nanyuki, a town of 30,000 neson the lives of students.
tled near the base of Mount Kenya
I visited Burguret Secondary
about 200km north of Nairobi, most
School, a collection of stone buildings, down a winding road, a few miles
of the residents dont have electricity
from the centre of Nanyuki town. We
but many today, thanks to Mawingu and TV white spaces technology,
upgraded the schools computer lab
have aordable access to the Internet.
to Windows 10. It was amazing. Right
A task that might have taken ve hours
there in the middle of Kenya they could

upgrade. Why? Because they have Internet connectivity.

I was inspired by the students,
and their passion. We dream about
everyone having access to the same
information and, potentially, the same
tools and opportunities. In Nanyuki, I
saw that notion in action.
I spent some time with these kids in
rural Kenya at a school, searching the
Internet. One student was looking up
electromagnetic induction. He introduced me to a site Id never heard of.
It was extraordinary. I had travelled
14,484km, sat down in a classroom in
a school that lacked running water,
and found that I was the pupil learning from the student next to me. All
because of the Internet and the power
of this information at his ngertips.
I had the chance to visit one other
school, Gakawa, where we used Skype
to connect with a classroom in India
and took turns guessing where each
class was located. The students quickly
gured out the correct countries, but
they wanted to dive deeper. They used
the Internet to pinpoint the regions
and towns. It was exciting to see their
enthusiasm and curiosity.
If you think about many parts of
rural Kenya, existing broadband is
not likely to be economically viable
anytime soon. So theres essentially
a market failure. TV white spaces
technology is not pie-in-the-sky. This
technology is happening today, and
not just in Kenya. At Microsoft were
working with partners such as Mawingu on pilots in 15 countries across ve
continents that have reached just over
200,000 people.
When I think about what I saw in
Kenya and what it means for the future, its clear that new technologies
will empower more people and spread
opportunity more evenly.
Mr Nadella is the Microsoft CEO.

Kathryn Cramer Brownell (Reuters)

During the 1966 California gubernatorial
race, former screen actor Ronald Reagan
framed himself as a citizen politician.
His critique of New Deal policies stirred
what commentators called a Jacksonian
chord in the public mind even as it was
artfully crafted behind-the-scenes by his
Kitchen Cabinet of wealthy California businessmen and developers. Now, candidates
are constructed in control rooms rather
than smoke-lled rooms, creating a culture
in which distrust of both the political and
media establishment ourish.

Kim Jong-un
Norht Korean leader

Christopher Hill (Project Syndicate)

Iran is a country with a turbulent past, beset by ongoing political crisis, and lacking
a broad consensus on the way forward at
home and its regional and global role.Yet
the maturity of Irans civilisation suggests
an enormous capacity to play a positive
role in an increasingly complex world order.
Unlike Kim Jong-uns North Korea, it possesses a vibrant civil society, educated
classes that are the envy of the region,
an extensive diaspora, and one of the
worlds richest endowments of natural
resources.
Warren Buffet
US billionaire businessman

Sean Farrell (Guardian)

Warren Buffett, the octogenarian multibillionaire investor, is homing in on his biggest
acquisition a maker of aircraft parts and
energy production equipment that is likely
to cost his Berkshire Hathaway conglomerate more than $30bn. The purchase of
Precision Castparts would extend Buffetts
decade-long push into the industrial sector. In the last decade, he has bought rms
such as the US industrial components producer Marmon, Israeli toolmaker Iscar, and
Lubrizol, the US chemicals company.

10

BUSINESS DAILY | Tuesday August 11, 2015

EDITORIAL & OPINION

Published by the Nation Media Group, Kimathi Street, Nairobi

Joe Muganda Chief Executive Ofcer | Tom Mshindi: Editor-in- Chief

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

Stalled Kibaki-ea pojects

mustnt be left to ot away

enyans generally prefer

quick measures that are
easily forgotten immediately the problem at hand improves. A mere illusion that the
government of the day is doing
something to address a pressing
problem helps to calm the masses
during times of crises even where
the citizenry openly doubts commitment of public ocials.
However, when that love for
short-term solutions puts billions
of shillings at stake, there are reasonable grounds to call for culture
change. It is depressing that several
billion-shilling projects conceived
by the Kibaki administration, to
keep the economy from sliding
into recession after the post-election violence, have stalled.
Projects started under the Economic Stimulus Programme (ESP)
were introduced by then Finance
minister Uhuru Kenyatta in his
2009/2010 Budget speech. At the
time, the economy was on cli,
having already fallen from a high
growth of 7.1 per cent in 2007 to
1.7 per cent in 2009 on the back of
chaos sparked by a disputed presidential election.
Mr Kenyatta allocated Sh22 billion under ESP to jumpstart private
sector enterprise amid prolonged
drought, a rally in oil and food prices and a ravaging global economic

crisis. Six years later, Mr Kenyatta

is now the president but the ministries and agencies that he formed
would rather start new projects
than inherit the old ESP ones.
That is why a number of schools,
horticulture markets, jua kali sheds
and public health centres started
in dierent parts of the country
have been abandoned half-way.
It makes no sense for state agencies to argue that cash meant for
the projects has been withheld by
the Treasury awaiting transfer of
mandate to counties.
It is the height of absurdity that
the Health ministry would, for instance, want to build a new cancer
centre in Salgaa instead of pooling
resources to complete an ESP one
at Nakuru Level 5 Hospital located just 23km away. Unfortunately,
county ocials have embraced this
wastefulness, allocating money to
build new produce markets, storage facilities, and sh farming
projects instead of channelling
money to similar ESP projects in
their localities.
Public projects must be assured
of continuity that transcends individuals and regimes. President
Kenyatta must ensure that none
of the stalled ESP projects are allowed to waste away just because no
government department or county
is willing to inherit them.

Women mentoship good

new initiative to mentor

women for positions in
company boards is welcome and should be supported
by all.
It is uplifting to note that 26
women accountants at the weekend graduated from a programme
by the Women on Boards Network,
formed by a group of women who
have served in boardrooms, to prepare them for board positions.
Such initiatives should be encouraged if the present under-representation of women in boardrooms is to be reversed. The presence of women in boardrooms remains low mainly because of lack of
mentorship, opaque appointment
procedures and competition with
the entrenched male club.

A recent report by a presidential task force on parastatal reforms

shows how badly women are under-represented in the public sector. It was documented that on average, women make up 27 per cent
of board members in the State-run
agencies, with a number of them
having just one or two women representatives.
This kind of imbalance must
not be tolerated given the fact that
majority of female candidates are
highly qualied and have the ability to run organisations just as well
as the men.
Let us give women an opportunity in leadership through mentorship even as we pursue legislative
options of guaranteeing them slots
in public oce.

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 think my neighbour is stalking me... Last night I looked through his window
with my telescope and saw him Googling me.

Ways to esolve taxation disputes

JOSEPH THOGO
TAX SOLUTIONS

ecent print media has featured

reports about tax disputes
working their way through the
tax adjudication process from the initial dispute stage involving the taxpayer
and the Kenya Revenue Authority, to the
Judiciary.
Credit should be given to taxpayers who perhaps are now more aware
of their tax rights and obligations, and
the KRA which has become more vigilant and is striving to build internal capacity among its ocers. Gone are the
days when revenue ocers would base
their tax demands on unsubstantiated
grounds. Though the capacity building
exercise is still work-in-progress, I can
attest to some brilliant minds at Times
Tower who base their demands for tax on
a solid foundation of the respective taxing
law even though we might dier on how
they interpret and apply the law.
So, what is the typical life-cycle of a
tax dispute and what should taxpayers
expect at each stage? The rst step should
be to explain to the revenue ocers the
nature of your business and the dierent transactions which you engage in. I
nd that this helps to place into context
the dierent information that the revenue ocers will review in the course
of their audit.
If possible, take the ocers to your
manufacturing facility, for example, so
that they can see the production process.
An outsiders view of your business does
not often times match reality. Therefore,
it will be a challenge trying to change
the revenue ocers opinion if they start
their review based on their perception of
what your business is. It is much easier

to clarify context as opposed to changing perceptions.

The review should generate audit
ndings that indicate the areas where
the ocers require additional clarication or more information, and also list
any tax issues. It should not be surprising
to nd that incorrect information had
been presented to the ocers and hence
they had based their assessment on an
incorrect premise. Where clarication
or additional information is required,
one should endeavour to provide these
promptly. The tax issues from the ndings will often be in two parts: issues
where there is mutual concessions that
there was non-compliance by the taxpayer (either deliberate or inadvertent) and
contentious issues where the taxpayer
and KRA interpret the law dierently.
For the non-contentious issues, the
prudent thing is to pay the tax due and
seek a waiver of any interest or penalties.
Even though the waiver is discretionary,
KRA is likely to consider your application favourably if you have an enviable
tax record and also based on the level
of cooperation they received during
their audit.
It should be remembered that taxation is based on law and supported by
practical circumstances. Under the circumstances, taxation becomes a more
complicated area than either pure law
or pure accounting. Thus for the contentious issues it is useful to bring a tax professional into the picture to look at the
issues raised and the reasons given by the
revenue ocers. It is not uncommon to
nd that the assessors may have looked
at an issue in a specic way, based on
information they obtained during their
audit, the circumstances prevailing at
the time and their interpretation of the
tax laws. Their position can be reversed
where correct information is presented
in the proper way.
There are always grey areas in the
tax law as well, and in such cases the
contentious issues can go either way

VIEWS FROM ABROAD

depending on how facts are looked at.

It must be appreciated that some businesses are complex in their nature and
lack of sucient experience on the part
of tax ocers could contribute to wrong
judgments and conclusions.
If a consensus is not reached on the
contentious issues, then the taxman will
issue an assessment demanding the tax
amount that he believes is due to him
after which the taxpayer should them
le an objection with the commissioner.
The relevant commissioner can either
uphold the assessment, amend it or
withdraw it. Where it is withdrawn, the
matter should be treated as concluded. In
the case of an amended assessment, one
should re-evaluate the amended assessment to determine whether to pay the
tax or to continue challenging it. Having
moved from the commissioners stage,
one would end up either at the Income
Tax Local Committee, the VAT Tribunal
or the Customs and Excise Tribunal.
All these tax adjunction forums have
now been amalgamated into one forum,
the Tax Appeals Tribunal, which will now
handle disputes stemming from all taxes.
The tribunal is empowered to mediate
in tax disputes and shall evaluate the assessment and give a ruling. Where one is
not satised with its decision then there
is always recourse to the High Court, the
Court of Appeal and nally the Supreme
Court where the contentious issue should
be a question of law and not fact.
The entire process of objecting to tax
assessments is governed by clear and
specic time frames. This is especially
the case in latter stages where time and
procedure are critical. The laws governing tax procedures and dispute adjudication stipulate certain timeframes
within which taxpayers and KRA must
discharge their responsibilities and failure to adhere to these timeframes could
fatally jeopardise the assessment.
Thogo works with Deloitte
East Africa and can be reached at
jthogo@deloitte.com

Opinions fom aound the wold

Uganda bride price ruling good

Trump may run as an independent

China need for patience with Japan

Last week, Supreme Court ruled against refund of

bride price in case of divorce. The main issues at
stake were womens
DAILY MONITOR
KAMPALA
equality, whether refund
of bride price is constitutional and whether bride
price causes domestic violence. The ruling was long
overdue .

Donald Trumps ego overshadowed the first

televised debate of 2016 Republican presidential
hopefuls. But the
NEW YORK TIMES
KAMPALA
aftermath of Thursdays
debate has been dominated by exchanges that
expose the possibility that, if Trump does not get the
ticket, he may run as a independent.

Stable relations with Japan is of great importance

to Chinas Asia-Pacific strategy. Japan is passing
CHINA DAILY
through a difficult
SHANGHAI
transformation period
and insists on siding with the US despite being
humiliated under US control. With such a
neighbour, China needs to exercise patience.

Tuesday August 11, 2015 | BUSINESS DAILY

11

EDITORIAL & OPINION

Pusuit of pots tumps patients wellbeing

DAVID MAKUMI
HEALTH

ommercial motivation has

polluted the healthcare industry, eroding integrity
and professional values. The greatest threat today is the mushrooming
of a class of service providers who
are solely driven by prots at the
expense of quality.
These providers have perfected
the art of circumventing regulatory
mechanisms with no regard for
standards, ethics or accreditation.
Whether it is the neighbourhood
chemist that sells tranquillisers

and antibiotics without a prescription or the healthcare professional

who receives kickbacks for every
patient referred abroad for treatment; the sick are a besieged and
exploited lot.
Herbalists and nutritional supplements vendors are also ghting
to feast on the healthcare gravy train.
The mortal blow is dealt by the astronomical costs of private health
insurance and low national hospital
insurance fund coverage.
Availability of latest technology
and specialists are now buzz words
for all healthcare related promotions
and marketing. These cutting edge

Letters

technologies occupy a central place

at the altar of medical practice with
super specialised doctors and nurses
who do not manage the whole patient but instead focus only on specic symptoms and organs bestriding hospitals like the colossus.
Whereas there are institutions
that have successfully blended compassionate care and sophisticated
technology, majority are struggling
to place the patient at the center of
care. Medics must appreciate that
the more high-tech medicine becomes, the more the basic things
that patients hold dear like trust,
dignity and respect matter.

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.

Syllabus should develop learners strengths

he proposed legislative Bill

by Karachuonyo MP James
Rege to have national examinations for primary and secondary
schools scrapped is long overdue.
Once students are through
with national exams, some set
their books on re in what they
call academic bonre. This demonstrates that they are compelled
to study to pass exams.
The 8-4-4 education system can
be crafted to equip learners with
entrepreneurial lessons and assessments based on projects and
not sitting examinations.
It is unfair to determine the
fate of students after four years
of studying in two weeks by giving them grades based on what they
score in exams. Examinations do
not necessarily promote learning,
instead they encourage cramming
of notes for the sake of passing. Failing exams does not mean a student

This is a challenging time for

healthcare consumers but there is
optimism that the country is headed
in the right direction in identifying
and xing obstacles to healthcare
delivery. The Sh38 billion medical equipment leasing project and
speeches by the President and the
First Lady during the just concluded
African First Ladies Cancer conference, are an armation of the governments commitment to ensure all
Kenyans enjoy their constitutional
right to quality healthcare.
The writer is chairman of the
Kenya Network of Cancer Organisations

Resolve land
dispute at
Kihiu Mwiri

I
Students sit an exam outside a crowded classroom. FILE
is bound to be a failure in life. People have dierent abilities. Some
excel and earn a living by engaging
in sports, music or the lm industry,
just to mention a few. There is need
to re-design the syllabus to exploit
this potential in students.
We have on many occasions
been treated to stories about successful entrepreneurs who failed
in their national exams but have

excelled in elds such as entrepreneurship, sports and art.

It is, therefore, a wake-up call
for stakeholders in the education
sector to re-look at the syllabus
provided to students to develop
a holistic individual who can contribute towards economic development through innovations and
business.

NICHOLAS SEWE, Bungoma

am earnestly appealing to
the government to seriously address land ownership
issues. It is unfortunate that the
land dispute at Kihiu Mwiri has
been allowed to continue for
such a long time. As of now,
events surrounding the land
have been of a barbaric and
devilish nature.
The directors who have
been brutally murdered are
Kenyans with dependants to
care for. They are entitled to
life from God.
It is the responsibility of the
government to lay down land
ownership and dispute resolution processes.

BEN NJEREMIA MONABII

Nyahururu

Lowassa success in Tanzania rests on beating corruption allegations

he political party system in

Africa today has always been
a means by a few individual
to ascend to power in the pretext of
representing the majority.
This is a process which a few individuals typically the rich, famous
and powerful use to safeguard and
propagate their vested interests to
achieve certain objectives.
Edward Lowassas candidature
for president of Tanzania is interesting. The CCM party executive board
barred his nomination during the

vetting process and instead selected John Magufuli as the party ag

bearer in the next general election,
leading to open discontent among
members.
On the same day, 26 CCM youth
from Monduli decamped to Chadema in protest. Reports are rife of the
mass exodus of more CCM members
to the Opposition. Lowassa declared
he has left CCM for Ukawa from
where hell vie for president. He
also expressed dissatisfaction with
the conduct of the vetting process,

which he referred to as awed and

overtaken by a few individuals with
selsh motives. He said his determination to serve Tanzanians had
compelled him to seek an alternative platform.
According to analysts, Lowassas
defection poses the greatest shakeup in CCMs history. For a party that
has reigned since independence and
has always been the majority in parliament, Lowassas inuence over
voting patterns cannot be belittled
or underrated.

The Opposition has accused

Lowassa of being corrupt. Allegations and controversy relating to
the Richmond Emergency Power
Supply scandal led to his resignation as PM.
While no evidence has been provided so far, it will be a matter of
interest to see how events unfold.
How Lowassa is going to deal with
these corruption allegation levelled
against him will determine his success in the forthcoming election.

SOLOMON OLE NAMUNKUK, Narok

Oppotunities
abound fo
Aficas geen
enegy push
NGOZI OKONJO-IWEALA AND
NICHOLAS STERN
GROWTH

Climate change confronts developing countries with a dilemma. On one hand, they are
particularly vulnerable to its eects, giving
them a strong interest in the global reduction
of greenhouse-gas emissions. On the other
hand, they are in desperate need of energy,
with some 1.3 billion people around the world
and two out of three Africans currently
lacking access to electricity.
In the past, the solutions to these imperatives would have been at odds with each
other. Providing more people with access to
electricity would have necessitated emitting
more greenhouse gases, aggravating the consequences of climate change. Fortunately, the
economics of energy has shifted signicantly
in recent years. It is now possible to expand
access to energy in developing countries while
also limiting emissions if investments are
channeled into clean energy.
In 2013, roughly $1.6 trillion was invested in energy infrastructure worldwide, with
about 70pc going to systems that depend on
burning fossil fuels and the rest going to clean
energy. Fortunately, these percentages are
starting to change; with the right policies,
they could be reversed. If investment in clean
energy can be raised to at least $1 trillion per
year by 2030, it will be possible to provide
energy access to those most in need while
cutting annual carbon-dioxide emissions by
5.5-7.5 gigatons roughly what the United
States emits in a year today.
Already, investments in clean energy are
soaring as the cost of producing it plunges.
In many places, solar and wind energy are
now competitive with fossil fuels. As prices
continue to fall and technologies mature, each
dollar invested produces more power. The
$270 billion invested in renewable energy in
2014 created 36pc more generating capacity
than the $279 billion invested in 2011. Thanks
to this trend, the installation of capacity for
the production of renewable energy exceeded
that for fossil-fuel-based production for the
rst time ever in 2013.
The costs of o-grid electricity are also
falling, providing exciting new opportunities
to provide aordable and reliable power to
rural communities. Solar photovoltaic modules, which are about 80pc cheaper now than
they were in 2008, can be used in isolated locations. And new developments in battery
technology, together with declining manufacturing costs, are expanding the availability
of o-grid energy storage.
And yet, despite these advances, the
transition to clean energy is not happening
fast enough. At the current rate of change,
the total share of global electricity production from renewable sources will reach just
20pc by 2030. That is less than half the 41pc
target that the International Energy Agency
recommends if the world is to avert global
warming of more than two degrees Celsius
during this century.
- PROJECT SYNDICATE.ORG

12

BUSINESS DAILY | Tuesday August 11, 2015

NEWS INDEPTH

A cow at the
Coast tted
with Icipes
tsetse y
repellent
collar. STELLAR
MURUMBA

Scientists bank on new tsetse y

epellant to boost food secuity
INNOVATION Icipes new stink

dispensing cattle collar offers

hope of cutting Sh480 billion
losses suffered by farmers in the
sub-Saharan Africa region
BY STELLAR MURUMBA

or years, scientists researching on waterbucks have known one thing. They stink
and for that reason, lions and ies leave
them alone. When researchers from the International Centre for Insect Physiology and Ecology
(Icipe) recently started looking for a long term solution to tsetse ies, which cause sleeping sickness
in humans and nagana in livestock, they turned
to the compounds in the stench of waterbucks to
make a repellant.
Basically we make the cows smell like waterbucks, says Dr Rajinder Saini, the Icipe Principal
Scientist at the Animal Health Division.
To achieve this, they have developed a new
tsese repellant collar - the result of 10 years of
research will see livestock farmers in aected
regions benet. The tsetse repellent technology,
is already changing the livelihoods of farmers in
Kenyas coastal region who were the rst to implement the innovation.
Although livestock are highly valued
economivally, not only in Africa but around the
globe, pests and illnesses have remained an obsctacle and stymied the growth of the sector in
large parts of the continent.
Dr Saini said during the launch of the Nairobi Innovation Week that the Icipe invented the
tsetse repellent technology with the objective of
combating food insecurity in Africa in line with
the United Nations proposed new Sustainable
Development Goals (SDGs).
The scientist, who is also the coordinator of
the European Union (EU) funded project noted
that while working with tsetse traps, such as Icipe

Dr Rajinder Saini talks to farmers during the pilot project of the tsetse repellent technology at the coastal
region. STELLAR MURUMBA
NGU traps, (named after Nguruman, an icipe eld
station in the Maasai heartland of Kenya) it was
observed that despite their eectiveness they were
not entirely ideal for pastoralists.
For them, a mobile technology suits their lifestyle. This meant that any technology would have
to be on the animal itself. This led us to start thinking of repellents and we started looking for them
from two dierent sources synthetic sources
and from natural blends of wild animals which
are present in tsetse habitats but tsetse ies do
not like to feed on ( for instance waterbuck, zebra). We identied a synthetic tsetse repellent 2methoxy-4-methylphenol and the 5 constituent
waterbuck repellent blend (Icipe patent applications), he said.
The next step was to determine how to dispense
these repellents on the animals themselves and
this led to the invention of the repellent dispenser

which involves controlled-release of the potent repellents (specically designed to facilitate release
of the repellents at a constant rate) that individual
cattle wear on their necks.
The spatial (3D-4D) repellent is a fruit of years
of research, and is a good example of how basic
research can lead to development of simple technologies for wide scale use by livestock keepers
in Africa. It takes dedicated researchers, competent partners, donors who are willing to take a
risk and engage communities to jointly develop
something like the tsetse repellent collars with
substantial potential benets on food security and
livelihoods of the smallholder livestock keepers,
said Dr Saini about his brainchild.
Dr Saini said the waterbuck repellent compounds work by keeping away most of the ies
that come to bite cattle thus signicantly reducing the biting rates and consequently the disease

levels in protected animals.

The repellents are released from the dispensers which are tied around the neck of cattle.
The dispensers comprise reservoirs in which the
waterbuck repellents compounds are held and
tubing from which they are emitted at a constant
release rate.
The EU initially gave Icipe a grant of Sh166 million (1.5 million) to develop more eective barriers
needed to prevent tsetse ies from reinvading areas where they have been controlled. This was in
partnership with the Kenya Wildlife Service.
Dr Saini said that the current project in
Shimba Hills will be up-scaled in partnership
with Kwale County government and Kenya
Tsetse and Trypanosomiasis Eradication Council (KENTTEC).
Early in the year, the EU injected another
Sh388 million (3.5 million) for the next four years
for up-scaling and commercialising the technology in partnerships with industry/entrepreneurs
through public-private-partnerships so that the
technology can be rolled out to other African countries. With the funding, the technology will also
be evaluated for its ecacy.
Tsetse ies aect some 36 sub-Saharan African countries where at least half of the population characteristically suers from food insecurity. Their overall negative economic impact on
agriculture and livestock sectors is estimated at
Sh480 billion ($ 4.75 billion) per annum, and affects pastoral and agro-pastoral communities
numbering about 260 million people.

Tuesday August 11, 2015 | BUSINESS DAILY

13

NEWS INDEPTH
MINISTRY OF WATER AND IRRIGATION

KENYA WATER SECURITY AND CLIMATE RESILIENCE PROJECT

REPUBLIC OF KENYA

COASTAL REGION WATER SECURITY AND CLIMATE RESILIENCE PROJECT

PROJECT ID. P145559; CREDIT NO. 5543-KE

CONSULTING SERVICES INDIVIDUAL CONSULTANT

SELECTION
REQUEST FOR EXPRESSION OF INTEREST FOR GRANTS
MANAGEMENT OFFICER KWALE SMALL GRANTS FACILITY
CONTRACT NO: MOWI/ KWSCRP-2/001/2015-2016
1.

The Government of Kenya has received financing from the World Bank toward
the cost of the second phase of Kenya Water Security and Climate Resilience
Project namely Coastal Regional Water and Security Climate Resilience Project
(KWSCRP-2) and intends to apply part of the proceeds from this financing for payment
of Consulting Services forGrants Management Officer Kwale Small Grants
Facility; CONTRACT NO: MOWI/ KWSCRP-2/001/2015-2016

2.

The Post -Reporting to the Project Manager, the Grants Management Officer Kwale
Small Grants Facility is responsible for providing technical expertise and support
of the Kwale County Sustainable Livelihoods Investments under Kwale County
Development Support Sub-component.

3.

For the detailed Terms of Reference for this assignment with specific objectives and
scope of the tasks, key deliverables, timing, competence and qualifications and other
requirements, please visit the ministry website www.environment.go.ke

4.

The Ministry of Water and Irrigation (the client) now invites eligible individual
consultants to express their interest (EOI) in providing these services. Interested
consultants must provide their CVs and information indicating that they are qualified
to perform the services. The desired consultant must have the following skills and
expertise:
(a) A degree in commerce/finance/accounting or related field.
(b) Professional qualification of ICPAK or equivalent.
(c) At least 8 (eight) years of relevant work experience in grants management.
(d) The candidate should have proven abilities in managing CSOs grants,
understanding of community development issues, proven capacity building
and mentoring for grass-root CSOs, pre-funding assessment, contract
design, compliance management, data analysis, budget and report review
for CSOs.
(e) Practical experience and knowledge of the government of Kenya accounting
procedures.
(f) Proven communications skills, both oral and written;

A farmer ploughing his farm at Shimba Hills with bulls tted with Icipes tsetse repellent collars. The collars
have become a hit among farmers due to their simplicity and mobility. STELLAR MURUMBA

In Kenya, according to a tsetse report published by Icipe, farmers mostly use drugs to treat
infected animals; however there is widespread
resistance and drugs only provide about 50 per
cent protection overall. The same report indicates
that farmers have also previously used pour-on
insecticides on the animals and traps but these
too have not been sustainable.
Independent socio-economic surveys indicate
that most of the farmers prefer repellent collars
over drugs, traps or pour-on insecticides, said
Dr Saini.
Several impacts are already being felt and the
validation outcomes in the Kenyan Coast, according to Icipe, indicate that the repellent technology
is very eective and provides substantial protection to cattle.
Farmers perceptions are very positive and demand is very high. Livestock keepers prefer the
repellent technology compared to other tsetse
and trypansomiasis control options due to the
technologys simplicity and mobility.
Because of the Icipe collars, I can now graze
my cows closer to the shimba Hills National
Park fence early morning and late evening without disturbance from the ies, which are most
active at these times. The animals are gaining
weight too and we can get more money after
selling them. Prior, we sold our animas between

Sh7,000 9,000 and now we are getting between

Sh20,000-30,000, said Suleiman Shee, a farmer
from Mangawani location.
Mohammed Sheria, a farmer from Zunguluka
location has seen the eectiveness of his bulls
after they were tted with the collar. My bulls
ploughed one acre per day before tting the tsetse
repellent collar, now they can do three acres a day.
Previously we could pay Sh30,000 to plough my
20 acre piece of land but now I am relieved.
The technology once fully optimised will thus
not only directly benet the livelihoods of marginalised pastoralists and agropastoralists but even
livestock herders in open range lands.
This follows the validation trials which had a
signicant impact on poverty reduction through
higher selling prices of the protected animals,
increased traction power resulting in more land
being cultivated, increased milk production and
reduction in money spent on drugs. Time spent
on grazing animals further from tsetse infested
areas has also been reduced.
Currently we have more than 2,000 animals
protected in Shimba Hills area with repellent collars with over 400 farmers involved. The aim is to
impact more than 10,000 livelihoods by the end
of the new project, said Dr Saini.
nstellarnelly@gmail.com

(g) Computing competence in Word, Excel, PowerPoint and accounting

packages;
(h) Ability to work with a multi-professional team.
5.

The duration for this position is expected to be one (1) years and will be subject to
annual extensions based on acceptable performance.

6.

The attention of interested Consultants is drawn to paragraph 1.9 of the World

Banks Guidelines: Selection and Employment of Consultants [under IBRD Loans
and IDA Credits & Grants] by World Bank Borrowers [January 2011] (Consultant
Guidelines), setting forth the World Banks policy on conflict of interest.

7.

Selection of an Individual Consultant will be in accordance with World Banks

Guidelines: Selection and Employment of Consultants [under IBRD Loans and IDA
Credits & Grants] by World Bank Borrowers, January 2011 revised July 2014 (Consultant
Guidelines). The selection criteria will be solely based on individual experience and
qualifications.

8.

Interested consultants may obtain further necessary information at the address below
during office hours between 0900 to 1600 hours from Monday to Friday excluding
lunch hour (1300 to 1400Hrs) and public holidays.

9.

The completed expression of interest documents in writing in three (3) copies must
be delivered to the Tender Box on Ground Floor, Maji House or sent to the address
below as to be received on or before 9th September, 2015 at 1000 hours East Africa
Time. For expressions of interest that will be deposited at the tender box, the packages
should be clearly marked:CONTRACT NO: MOWI/ KWSCRP-2/001/2015-2016 for
GRANTS MANAGEMENT OFFICER KWALE SMALL GRANTS FACILITY addressed
to:
Project Manager
Kenya Water Security and Climate Resilience Program,
Ministry of Water and Irrigation,
Maji House, 4th Floor Room No. 453/456, Ngong Road,
P.O. Box 49720-00100, Nairobi.
Tel: +254 02 2716103 Ext. 42366/42335
Email: procurement.kwscrp@gmail.com

14

BUSINESS DAILY | Tuesday August 11, 2015

REGIONAL NEWS

People hold a banner as they protest against high fuel prices during a workers rally at Gani Fawehinmi Partk in Lagos on
January 13, 2012. The country suffers perennial shortage of the commodity despite being top producer of oil. AFP

Nigeian lawye sent in to

clean up state oil company
CORRUPTION New boss expected to help curb rampant graft at the rm
The new head of Nigerias state oil
company is a workaholic stickler for
the rules with a strong background
in law, qualities he will need if he is
to overhaul an organisation notorious for corruption and mismanagement.
Emmanuel Ibe Kachikwu, the new
managing director of the Nigerian National Petroleum Corp (NNPC), was
previously executive vice chairman
and general counsel for US oil major
ExxonMobil.
Former colleagues have called him
smart, responsive, personable and the
right person to clean up the mess at
a company that has been accused of
failing to account for tens of billions
of dollars.
Dr Kachikwu is a very diligent
person. Hes a team player ... He is
very unassuming and easy-going. He
dresses well and mostly wears suits
but nothing too expensive or extravagant, said a former colleague, who de-

clined to be named.
Kachikwus rst act on taking up
his new post was to sack a whole layer
of senior managers at NNPC.
Fixing how the state runs the oil
sector, at the core of which lies NNPC,
will be the key to helping Nigeria.
Despite being Africas biggest oil
producer, years of self-serving politicians taking money with impunity
have left the country facing a cash
crunch and no substantial savings
to fall back upon.
Hailing from Delta state in the oilrich south, Kachikwu is in his late 50s
and has a wife who also works in the
oil industry for local producer Seplat.
He is a high chief in the ethnically
Igbo town of Onicha-Ugbo, a role that
he takes seriously.
His ability to win fans started
early, before his Harvard Law days,
at the University of Nigeria in Enugu
state.

The students would create mock

courts to sue each other and the students union. There were several
chambers and his was one of the
most popular, said Ugo Okoroafor,
communications adviser to the central bank governor, who attended
university with Kachikwu.
We knew he was on a strong
trajectory.
Kachikwu also found time to start
a publishing company called True
Tales Publications, which now distributes Hello! Nigeria among other
gossip and fashion magazines.
Uju Ifejika, one of the few female
heads of a Nigerian oil company, Brittania-U, worked as a junior counsel
under Kachikwu at Texaco in the late
1980s and saw him as a mentor.
He gave us an opportunity to
grow and believe in ourselves. But
you must work day in, day out. He is
a workaholic. He does not rest, so you

cant rest, she said.

Nevertheless, his appointment
was a surprise to most as President
Muhammadu Buhari broke with tradition by picking not only a lawyer
over an engineer, but an outsider
to NNPC.
Kachikwu is also one of the few
Christian southerners among appointments made so far by Buhari,
who is a Muslim northerner. Nigerias
population is roughly split between
Christians in the south and Muslims
in the north.
A presidency source said Buhari
purposely sought out an outsider and
requested the records of those in top
positions at foreign oil companies.
His pedigree speaks volumes.
His record shows he is a credible person, that is all I can say, presidency
spokesman Femi Adesina said.
Kachikwu will have to plug massive revenue gaps from NNPCs oil
sales.
NNPC does not publish annual reports and its book-keeping has been
criticised for being opaque, which
appears to have allowed billions of
dollars to disappear.
Such a combination of lapses
and political interference allowed
ten years worth of crude oil from
one area amounting to over $12 billion to go unaccounted for, according the Natural Resource Governance
Institute.
Even with strong direction from
the top to help him curb corruption
in Nigerias oil sector, Kachikwu will
have to contend with entrenched
ineciencies, such as weak communication between divisions and
equipment replacement approvals
that take years.
He is eminently qualied ... when
you are immersed, you may not see
things so clearly. An outsider can
break in with fresh thinking and
methods, a senior NNPC source
said.
But some have questioned whether he will act as a diplomat, ironing
out dierences between independent oil companies and the state, or
represent a surrender to foreign
interests.
- REUTERS

Puntland seeks help as Somali militants ente its teitoy

Somalias Puntland region needs
more help from the central government and the African Union to ght
al Shabaab militants, especially
equipment and ammunition, the
president of the semi-autonomous
region has said.
Al Shabaab, which controlled
Mogadishu and southern Somalia
until it was driven out of the capital
in 2011, has been pushed out of major strongholds by the Somali army
and the African Union peacekeeping
force AMISOM. It has regrouped in
the Galgala hills of Puntland, outside
the AMISOM area of operation.

AMISOM is largely funded by

Western powers who want the al
Qaeda-linked al Shabaab, which
aims to overthrow the government
and impose its strict version of sharia
law, to be driven out.
We do not need AMISOM forces because Puntland forces have the
ability to ght al Shabaab, President
Abdiweli Mohamed Ali told Reuters
in an interview. But we need to be
assisted with military equipment, telecommunication, military vehicles,
weapons and ammunitions.
These are what we need from
AMISOM and we have the right to

get all these, Ali said last Tuesday.

Why are Mogadishu forces assisted and why are Puntland forces not
assisted? This shows the unfairness
in Somalias federal government.
A plan to integrate 3,000 Puntland
soldiers into the Somali forces could
bring more resources to Puntland, in
northeastern Somalia, though none
have so far materialised, he said.
The Somali government responded to Alis comments by saying the
federal government had met its obligations.
Puntland has largely avoided
the chaos that has bedevilled Soma-

lia over the past decade, including

the threat from al Shabaab militants,
and has resisted Mogadishus overtures to became an ocial state in
a new Somalia, clashing on how to
share resources and proceeds from
potential oil deals.
Ali, Somalias former prime minister, also expressed disappointment
with the pace of political progress in
Somalia.
Somali President Hassan Sheikh
Mohamud last month abandoned the
idea of holding a popular vote for its
planned 2016 polls due to infrastructure constraints. - REUTERS

BRIEFING
DAR ES SALAAM
Tanzania to invest $380m in
state-run agriculture bank
Tanzania will invest 800 billion shillings (Sh38
billion) over the next eight years in a new
state-run agriculture bank to boost growth in
the sector, which has long been stied by low
productivity and a lack of nancing. President
Jakaya Kikwete launched the Tanzania Agricultural Development Bank on Friday after the
government provided TSh60 billion in seed
capital for its establishment. Around 75 percent of Tanzanians depend on agriculture for
their livelihoods and the sector contributes
to 25 percent of our gross domestic product,
Mr Kikwete said in a statement.

LUANDA
Police clash with protesters
demanding activists release
Angolan police clashed with more than 50
anti-government protesters over the weekend in the capital Luanda and detained several of them, including activist Rafael Marques
de Morais.
The protesters were demanding the release
of 15 activists accused of planning to disrupt
public order and security and were chanting
Liberation now! We want our 15! We want
our 15!.
Marques de Morais says in his 2012 book
Blood Diamonds: Corruption and Torture in
Angola that Angolan generals were responsible for more than 100 cases of killings and
torture of civilians and workers at diamond
mines that they own.

CAIRO
Morsy to undergo medical
tests after raising concerns
Egypts ousted former president Mohamed
Morsy, who has been in detention for two
years, is to undergo a medical examination at
his request after he complained about prison
food, state media said. Morsy, who has diabetes, described the meals served to him as
very bad, and has refrained from eating prison food because he senses it is not safe for
him, state news agency MENA reported.
According to MENA, Morsy said that prison
ofcials had denied his requests to receive
food from outside the prison.
Prison ofcials could not be reached for comment.

ABUJA

Buhari orders ministries to

use ofcial bank accounts
Nigerias President Muhammadu Buhari has
ordered ministries to use only approved government bank accounts to make payments,
the vice presidents ofce said on Sunday,
part of a drive to improve transparency and
clamp down on corruption. Buhari, who took
ofce in May after being elected on promises to ght endemic graft in Africas biggest
economy, has said he believes ofcials have
stolen around Sh15 trillion from the public
purse over the past decade. Under the new
system, all receipts due to the government
or any of its agencies must be paid into accounts maintained by the central bank unless
specic permission has been granted.

Tuesday August 11, 2015 | BUSINESS DAILY

15

TUESDAY, AUGUST 11, 2015

p.17

INVESTMENT
Student sets up stevia
processing plant

p.18

PLAN
Atari founder Nolan Bushnell
on why life is a game

Moyale villages get

thei hands dity fo
shallow gold iches
MINING Residents say with State support

they can make better returns from commodity

BY DAVID MUCHUI

rmed with handheld ground scanners that resemble those used in

landmine detection, a group of
men scours the barren land that makes up
Dabel, Yabello and Nanah villages, 70 km
east of Moyale town.
Another group tracks them expectantly,
waiting for the detectors to bleep when they
encounter traces of what they are all braving the sweltering heat for gold. When
the call to start digging is given, men excavate the ground using their hoes and shovels while women, sitting in twos, wash the
dust in shallow basins to reveal the precious
metal that has changed their fortunes in
just three years.
Hussein Mandera is one of the men getting his hands and feet dirty (and his scalp
baked by the sun) in search of gold in his
remote village which is along the KenyaEthiopia border.
Until four years ago, the former longdistance truck driver explains, residents of
the three villages were unaware of the existence of the precious metal until a group of
Tanzanians arrived.
A group of Tanzanians came to our
village from Ethiopia armed with golddetecting and mining machines, he says.
They contracted locals to do the mining in
exchange for money. After mining for some
time, the Tanzanians left and that is when
we took over the gold mining business.
In addition to gold, the area is rich in
several other minerals, including chromite,
iron ore and talc, which the locals believe
can be found in commercial quantities.
Mr Mandera says gold mining is tedious
and the amounts recovered are small, but
believes it is worth all the trouble.
Brokers buy a gramme of gold for be-

Gold fever
Gold mining was introduced in Moyale by
a group of Tanzanians a few years ago.
It is mined in groups; one prospecting as
the other follows waiting to dig and extract
the detected gold.
A gramme of gold can fetch as much as
Sh4,000 making its mining a very attractive
activity.
Kenya produced 2.1 tonnes of gold in 2013
valued at Sh7.43 billion.

tween Sh2,500 and Sh3,000 but the price

may hit Sh4,000 when demand peaks. Mr
Manderas largest single nd to date has
been 200 grammes which he and his village
mates sold for nearly Sh500,000. He made
Sh140,000 from this transaction.
I had no house then, so I used the money
to construct a house. I also bought 10 goats
while my two colleagues bought motorbikes
which they use in the boda boda business,
he says.
The largest amount of gold that has
been found in one mine has been one kilogramme.
These nds have not only seen most
young people from the three villages spend
their days in the hills but has also attracted
miners (and brokers) from Ethiopia, Moyale
town and Nairobi. Most residents, fuelled

by the rush, have now purchased their own

gold-detecting machines.
Mohamed Shuke, a primary school
teacher, says he purchased his Minelab
detector for Sh600,000 in October 2013
as soon as he caught wind of the precious
resources existence.
Mr Shuke says he recouped his investments in just a couple of months. He, however, admits that the nds these days have
grown smaller but thinks that if more expertise was employed in the detection, larger
deposits can be found.
Alluvial gold is found in small quantities and we believe more can be found in
the hills if more digging is done, he says.
The mineral resources can largely benet
the country if proper survey and mining
is done.
Hassan Godana, the youth chairman for
Dabel location, says that there is need for
the government to support in mining the
commodity.
Mr Godana, who has mined approximately 200 grammes of the metal, notes
that as deposits decline, the youth should be
oered technical and marketing assistance
to mine chromium and other minerals.
We have not tried to mine the chromium
that is said to be in large amounts because

Residents use
metal detectors to prospect
for gold as diggers wait in the
background.
Left: A woman
pans for gold at
Nanah mine in
the county.
DAVID MUCHUI

we do not know whether there is a market. We

look for gold because buyers come here with
money, he says.
Kenya mined 200 kilogrammes of gold last
year earning Sh695.3 million, according to the
Economic Survey 2015. This was a drop from
the previous years 2.1 tonnes which earned the
country Sh7.43 billion.
The decline in production of gold was
mainly attributed to low prices in the export
markets, the report notes.
Kenyas mining sector is still at its infancy.
Gold and rare earth minerals are the other deposits that have been found but are yet to be
exploited.
Several foreign-based mining companies
are however increasingly setting up in in the
country, a move that might nally unlock the
potential of the sector.
Last month Canadian miner Stockport Exploration and UK-based Red Rock Resources
announced that they have raised a combined
Sh23.5 million for their western Kenya gold
mining operations.
Last December, another gold miner, Mayfox
Mining, which has its eyes set on listing on the
Nairobi Securities Exchange, raised Sh42 million to fund work on its Turkana-based site.
dmuchui@ke.nationmedia.com

16

BUSINESS DAILY | Tuesday August 11, 2015

Tuesday August 11, 2015 | BUSINESS DAILY

Entepise

Entepise

PEOPLE | IDEAS | NEWS

PEOPLE | IDEAS | NEWS

Student sets up stevia pocessing plant

QUOTES

GO-GETTER Law student

Nickly Kipkorirs factory in

Kitengela is the rst of its
kind in Kenya and Africa

People often say

that motivation
doesnt last. Well,
neither does
bathing--thats why
we recommend it
daily.

BY ANITA CHEPKOECH

A stressed out entrepreneur. The rst step in managing stress is to establish the stressor. FILE

How to manage stess and

build a successful entepise
as tolerating a non-performing employee, unresolved customer complaints and little things that
you dont like doing but you have to do them every
day because there is no one to do them.
Also, persistent worries about what might
happened in the future if things continue like
this stresses us.
BY MURORI KIUNGA
In my experience the most potent way of managing stress or avoiding most of it is learning how
ast week we saw that stress is the lead- to manage your expectations.
As a rule, when investing in a business venture
ing cause of business failure. When stress
causes havoc to your health it renders you I multiply the expected input by three and divide
incapable of ghting in the market place or mak- the expected output by three.
ing rational decisions which are key to business
For example, if I have a project that I expect to
spend Sh00,000 on and make a prot of Sh30,000
success.
Stress has been studied and debated widely, I prepare for an unfortunate scenario where the
yet not a single remedy has been prescribed as a cost could go up three times to Sh300,000 and
prot shrink by one third to Sh10,000. If I cannot
cure for it.
The rst step in managing stress is to estab- manage that eventuality I leave it.
lish the stressor. Common stressors in life include
Whether it is the money you expect to make,
failure to meet our objectives and
the input by your employees, recepexpectations, worries about future
tion of the product or service by cusuncertainties and inability to manCommon stessos tomers, your own input and what you
get out of it; you have to get it right
age change.
include failue to
or risk stress.
However, the real stress comes
meet objectives
Secondly, do not be too emotionalfrom our own reaction to such dely attached to your business such that
mands rather than their magniand expectations
if it sinks it goes down with you.
tude.
and woies
Reconcile yourself to the fact that
An example is given of a teacher
about futue
who began her class by holding up a
every venture is risky and anything
glass of water.
can happen, including closing shop.
uncetainties
What will happen if I hold it like
Thirdly, live each day at a time.
this for an hour? she asked.
Do not encumber yourself with fuYour arm will begin to ache, answered one ture concerns so much that you are unable to
student.
enjoy today.
You are right. What about if I held it for a day
Focus on serving your customers well today.
or two? queried the teacher.
You are what you are today largely because of
Your arm could go numb and you might suf- what you did in the past and not what you are
fer muscle pain or even paralysis necessitating doing today. You can only change your future by
urgent medical intervention.
living well today.
You are very right. Now, what caused the probFinally, adopt the right attitude towards evelem when the weight did not changed?
rything in life. Complaining about things you
This analogy demonstrates how stress gets hold cannot change is defeatist. Focus on doing what
of us. Contrary to what many people think, stress you can and accept change as an ally rather than
is not caused by big things such as hurts, losses or an adversary.
disasters which hit us from time to time.
The main stressors that sap our energy, wreck Mr Kiunga is a business trainer and author of
havoc on our health and ruin our businesses are The Entrepreneurial Journey: From Employment
little things that keep disturbing us for long such to Business. Murorikiunga@yahoo.com

Nickly Kipkorir, a 23-year-old university

student, has opened a factory to process
stevia (a natural sweetener) in Kitengela
near Nairobi, looking to provide a service
which is mostly available in countries like
China and Malaysia.
Mr Kipkorir, who also farms the
crop, said he did not understand why
the plant which is gaining popularity in the country has to be shipped
abroad for processing and the extract
later exported for sale.
The law student raised money for setting up the factory from savings made
from farming on his ve-acre farm.
The Public Health ministry and the
Kenya Bureau of Standards issued him
a licence in July.
I installed a stevia extractor which
simply separates the sweetener from the
bre then we package the nal product
in powder form for sale, Mr Kipkorir told
the Business Daily.
I collect an average of one tonne of
dried stevia leaves every three weeks,
he said.
Global demand for the sweetener
has been rising as more beverage makers switch to the crop as a response to
health-conscious consumers.
Coca-Cola and Pepsi have began using
stevia to sweeten their soft drinks. The
confectionary industrys demand for the
sweetener has also been growing rapidly.
Stevia is a fairly new plant to most African
countries. It was introduced in Kenya in

ZIG ZIGLAR
AMERICAN AUTHOR,
SALESMAN, AND MOTIVATIONAL
SPEAKER.

A farmer tends
his stevia crop
in Kericho,
and (right)
entrepreneur
Nickly Kipkorir.
PETER KAMAU AND BILLY
MUTAI

2009 and is grown in areas like Kericho, Nandi, Nakuru, Laikipia, Uasin
Gishu, Narok, Meru and Bungoma.
Mr Kipkorir, through his company Stevia Kenya, helps farmers to collect and transport their produce from
farms in the South Rift, Central and
Western Kenya counties to his new
factory. He currently provides a ready
market to over 50 small scale stevia
farmers, paying them Sh150 per kilogramme.
The commodity was initially
shipped to China where the sweetener was extracted before being processed in Malaysia, Mr Kipkorir told
Enterprise.
I doubt if there is any stevia factory in Africa, he added. His target
customers are bakeries and beverage makers based in Nairobi and

Mombasa. The entrepreneur, who has

so far employed ve workers, said his
aim is to begin exporting the product
when he hits his target of collecting a
tonne every day.

Importing seedlings
Stevia Kenya has also began importing
seedlings from Malaysia for onward
sale to farmers at Sh5 each. Once planted, the crop takes only two months
to mature.
International companies have been
investing in stevia farming across the
country.
PureCircle, a Malaysian company
which farms the crop in Kericho County, recently completed a Sh3.87 billion
cash call to help it expand the business
in the country and in Paraguay where
it also grows the crop.

The rm began growing stevia in

Kericho in 2012 but has already expanded to Meru, Bungoma and Uasin
Gishu counties with plans to begin
operations in Kiambu.
The company has contracted some
4,000 farmers to supply it with 20,000
tonnes of stevia monthly for export.
A number of studies show that
stevia oers some relief for illnesses
including high blood pressure, diabetes, indigestion and heartburn, cold
and u, as well as teeth problems. It
can also help in weight loss.
It has anti-bacteria and anti-oxidant components which can prevent
wrinkles, dandru and hair loss.
Fresh stevia leaves can be used as
a sweetener in beverages, such as tea,
or as an edible food garnish.
AChepkoech@ke.nationmedia.com

Fames adopt use of epellant

cops to beat weeds and pests
BY STELLAR MURUMBA

Farmers aected by climate

change are set to benet from a
new initiative by the International
Centre of Insect Physiology and
Ecology (Icipe) that promises to
stabilise production and increase
yields nearly three fold.
The climate-smart concept addresses challenges of insect pests
(stemborers), the parasitic weed
Striga, poor soil fertility, soil moisture management and the need for
high quality animal feed.
The technology, which the Icipe scientists have been developing
for about 20 years, encourages the

use of drought-tolerant repellant

to intercrop and and trap crops to
create borders.
Another practice involves intercropping cereals with a pest repellent plant that drives away or
deters stemborers, which mainly
attack maize.
An attractant trap plant, for
instance Napier grass, is planted
around the border of crops, with
the purpose of attracting and trapping pests, said Charles Midega,
an Icipe scientist and lead study
author.
As a result, food crops are left
protected from the pests. Napier
grass also inhibits the growth of

the Striga weed.

Aside from the insect-repellant
benets of using Napier grass, its
serves as a high quality fodder.
The researchers in a study
found that in elds where farmers use the climate-smart application, only about ve per cent of
the maize crop was destroyed by
stemborers compared to 40 per
cent where the technology was
lacking.
Repellant crops eectively
controlled the Striga weed menace while an average of 20 Striga
plants emerged around each individual maize plant where outdated
farming methods were used.

A farmer from Bungoma uses

desmodium to ght Striga weed in
his maize crop. FILE

The farmers currently applying

this adapted version are living in
the drier areas of western Kenya,
eastern Uganda, the Lake Victoria basin, Tanzania and northern
Ethiopia.
The study shows that farmers
using the practice in areas experiencing dry and hot weather due to
climate change are now harvesting
around 2.5 times more than those
not using the method.
Farming systems in sub-Saharan Africa are dominated by mixed
crop-livestock systems and cultivable land is becoming less due to
population increase, said professor Zeyaur Khan, the Icipe leader
of the programme.
There is need for technologies
such as the climate-adapted push
pull which allows for intensied
agriculture.

17

Experience
taught me a few
things. One is to
listen to your gut,
no matter how
good something
sounds on paper.
The second is that
youre generally
better o sticking
with what you
know. And the
third is that
sometimes your
best investments
are the ones you
dont make.
DONALD TRUMP
US BUSINESS MAGNATE

Women are the

largest untapped
reservoir of talent
in the world.

HILLARY CLINTON
US PRESIDENTIAL CANDIDATE

How to haness you

ceativity fo business

BY SRIRAM BHARATAM

Creativity is thinking up new things, innovation is doing new things

ore youth around the world are

creating new and more eective solutions to the growing
challenges of our times. Mikaila Ulmer, a
10-year-old girl from Texas, is the face of
a thriving lemonade business. And if you
are wondering if its just a well-tracked
stand in her parents front yard, then you
are mistaken. It is a full-edged company
BeeSweet Lemonade that just got a
$60,000 (Sh6 million) investment.
What makes BeeSweet special is that
its sweetened by honey rather than sugar
or articial sweetener. Her interest with
bees began at age 4 when she was upset
and freaked out by two consecutive bee
stings.
Here in Kenya, a young dynamic group
of youth from Kibera has started a car wash
garage and employs about 16 youth. The
youth in the Kibera Vision Group are enterprising and have made the most of the
resources available to them.
Every year in Africa about 10-12 million youths enter the workforce yet only
about 6.7 million formal jobs are created
on average, leaving about three to ve million youths looking for non-existent jobs
unemployed, under employed and often
vulnerable. If the talent of these youths
is tapped and put into a path of innovation, the threat that unemployability
poses to the growth of Africa would be
controlled.
William Shakespeare once famously
said, Our doubts are our traitors, that
make us to lose the good chance to win,
fearing to attempt. If you have an innovative mind or a brilliant idea that you think
can change the world, then follow these
10 guiding principles:
Get out of your comfort zone: You
can only grow if you are willing to feel
awkward and uncomfortable when you
try something new, because innovation
begins at the end of your comfort zone.
So be willing to take chances, knowing
you could fail or even that people will
ridicule you.
Be open minded: The mind is like
a parachute; it works the best when it is
open. An open-minded person sees life
without boundaries.
Be part of/ build an ecosystem: If
you want to go fast, go alone; if you want
to go far, go together. The most important
aspect of sustaining innovation is to build,
sustain and strengthen links among the
ecosystem. Apple iPhones success is due
to the ecosystem of content producers and

consumers than to its hardware, looks or

appealing browsing features.
Get the right people: People inspire
you or drain you, pick them wisely. Jack
Welsh once said, If you pick the right
people, and give them the opportunity to
spread their wings and put compensation
as a carrier behind it, you almost dont
have to manage them. So go ahead get
the right people, some who have already
been there or who want to go in the direction you want to go.
Dont be afraid of failure: Failure
should be our teacher, not our undertaker.
Failure is delay, not defeat. It is a temporary detour not a dead-end. Failures are
important part of life; if you dont fail you
dont learn, and if you dont learn, you dont
challenge. What denes your success is
how well you rise after falling. So go ahead
and challenge yourself and your ideas.
Open up possibilities: The possibility of having a dream come true, makes life
interesting. And it is this possibility that
keeps innovators going, not the guarantee.
Be alert, be daring, be positive but most
importantly be open to new possibilities.
Remember possibilities comes in the form
of opportunities, sometimes from the least
expected, so make sure you step up when
opportunity presents itself.
Personal development time: Education is the most powerful weapon which
you can use to change the world. Personal
development is more than just polishing
talents you already have; its about growing, becoming more aware and gaining
valuable abilities that you can use to make
an impact in the world. What you spend
on your personal development returns to
you as your condence, hope, success and
ability to overcome challenges.
Leverage technology: What new
technology does is create new opportunities to do a job that customers want
done. Tech innovation has radically
changed the way consumers and retailers experience the whole new dimension
of online shopping. In an age where only
the ttest survive, adapting to technology
is seen as adapting to a changing environment. Remember, Kodak, the pioneers in
lm based technology, went bankrupt as a
result of the failure to adapt to the digital
photography revolution.
Build connections: Communication
is the human connection, the key to personal and career success. It is often said
that Your network is your net worth.
Build these connections before you need
them. Be visible and try to be a go-to person. It does not matter how small or large
your innovation is, what matters is how
strong your connections are. Your network
can take your idea from small to big.
Sriram is the founder and chief mentor of
Kuza Biashara Limited, a capacity building organisation coaching youth and SME
owners across Africa. Sri chairs Entrepreneurs Organisation for Africa. He can be
reached @Sbharatam or sri@kuzabias
hara.co.ke.

16

BUSINESS DAILY | Tuesday August 11, 2015

Tuesday August 11, 2015 | BUSINESS DAILY

Entepise

Entepise

PEOPLE | IDEAS | NEWS

PEOPLE | IDEAS | NEWS

Student sets up stevia pocessing plant

QUOTES

GO-GETTER Law student

Nickly Kipkorirs factory in

Kitengela is the rst of its
kind in Kenya and Africa

People often say

that motivation
doesnt last. Well,
neither does
bathing--thats why
we recommend it
daily.

BY ANITA CHEPKOECH

A stressed out entrepreneur. The rst step in managing stress is to establish the stressor. FILE

How to manage stess and

build a successful entepise
as tolerating a non-performing employee, unresolved customer complaints and little things that
you dont like doing but you have to do them every
day because there is no one to do them.
Also, persistent worries about what might
happened in the future if things continue like
this stresses us.
BY MURORI KIUNGA
In my experience the most potent way of managing stress or avoiding most of it is learning how
ast week we saw that stress is the lead- to manage your expectations.
As a rule, when investing in a business venture
ing cause of business failure. When stress
causes havoc to your health it renders you I multiply the expected input by three and divide
incapable of ghting in the market place or mak- the expected output by three.
ing rational decisions which are key to business
For example, if I have a project that I expect to
spend Sh00,000 on and make a prot of Sh30,000
success.
Stress has been studied and debated widely, I prepare for an unfortunate scenario where the
yet not a single remedy has been prescribed as a cost could go up three times to Sh300,000 and
prot shrink by one third to Sh10,000. If I cannot
cure for it.
The rst step in managing stress is to estab- manage that eventuality I leave it.
lish the stressor. Common stressors in life include
Whether it is the money you expect to make,
failure to meet our objectives and
the input by your employees, recepexpectations, worries about future
tion of the product or service by cusuncertainties and inability to manCommon stessos tomers, your own input and what you
get out of it; you have to get it right
age change.
include failue to
or risk stress.
However, the real stress comes
meet objectives
Secondly, do not be too emotionalfrom our own reaction to such dely attached to your business such that
mands rather than their magniand expectations
if it sinks it goes down with you.
tude.
and woies
Reconcile yourself to the fact that
An example is given of a teacher
about futue
who began her class by holding up a
every venture is risky and anything
glass of water.
can happen, including closing shop.
uncetainties
What will happen if I hold it like
Thirdly, live each day at a time.
this for an hour? she asked.
Do not encumber yourself with fuYour arm will begin to ache, answered one ture concerns so much that you are unable to
student.
enjoy today.
You are right. What about if I held it for a day
Focus on serving your customers well today.
or two? queried the teacher.
You are what you are today largely because of
Your arm could go numb and you might suf- what you did in the past and not what you are
fer muscle pain or even paralysis necessitating doing today. You can only change your future by
urgent medical intervention.
living well today.
You are very right. Now, what caused the probFinally, adopt the right attitude towards evelem when the weight did not changed?
rything in life. Complaining about things you
This analogy demonstrates how stress gets hold cannot change is defeatist. Focus on doing what
of us. Contrary to what many people think, stress you can and accept change as an ally rather than
is not caused by big things such as hurts, losses or an adversary.
disasters which hit us from time to time.
The main stressors that sap our energy, wreck Mr Kiunga is a business trainer and author of
havoc on our health and ruin our businesses are The Entrepreneurial Journey: From Employment
little things that keep disturbing us for long such to Business. Murorikiunga@yahoo.com

Nickly Kipkorir, a 23-year-old university

student, has opened a factory to process
stevia (a natural sweetener) in Kitengela
near Nairobi, looking to provide a service
which is mostly available in countries like
China and Malaysia.
Mr Kipkorir, who also farms the
crop, said he did not understand why
the plant which is gaining popularity in the country has to be shipped
abroad for processing and the extract
later exported for sale.
The law student raised money for setting up the factory from savings made
from farming on his ve-acre farm.
The Public Health ministry and the
Kenya Bureau of Standards issued him
a licence in July.
I installed a stevia extractor which
simply separates the sweetener from the
bre then we package the nal product
in powder form for sale, Mr Kipkorir told
the Business Daily.
I collect an average of one tonne of
dried stevia leaves every three weeks,
he said.
Global demand for the sweetener
has been rising as more beverage makers switch to the crop as a response to
health-conscious consumers.
Coca-Cola and Pepsi have began using
stevia to sweeten their soft drinks. The
confectionary industrys demand for the
sweetener has also been growing rapidly.
Stevia is a fairly new plant to most African
countries. It was introduced in Kenya in

ZIG ZIGLAR
AMERICAN AUTHOR,
SALESMAN, AND MOTIVATIONAL
SPEAKER.

A farmer tends
his stevia crop
in Kericho,
and (right)
entrepreneur
Nickly Kipkorir.
PETER KAMAU AND BILLY
MUTAI

2009 and is grown in areas like Kericho, Nandi, Nakuru, Laikipia, Uasin
Gishu, Narok, Meru and Bungoma.
Mr Kipkorir, through his company Stevia Kenya, helps farmers to collect and transport their produce from
farms in the South Rift, Central and
Western Kenya counties to his new
factory. He currently provides a ready
market to over 50 small scale stevia
farmers, paying them Sh150 per kilogramme.
The commodity was initially
shipped to China where the sweetener was extracted before being processed in Malaysia, Mr Kipkorir told
Enterprise.
I doubt if there is any stevia factory in Africa, he added. His target
customers are bakeries and beverage makers based in Nairobi and

Mombasa. The entrepreneur, who has

so far employed ve workers, said his
aim is to begin exporting the product
when he hits his target of collecting a
tonne every day.

Importing seedlings
Stevia Kenya has also began importing
seedlings from Malaysia for onward
sale to farmers at Sh5 each. Once planted, the crop takes only two months
to mature.
International companies have been
investing in stevia farming across the
country.
PureCircle, a Malaysian company
which farms the crop in Kericho County, recently completed a Sh3.87 billion
cash call to help it expand the business
in the country and in Paraguay where
it also grows the crop.

The rm began growing stevia in

Kericho in 2012 but has already expanded to Meru, Bungoma and Uasin
Gishu counties with plans to begin
operations in Kiambu.
The company has contracted some
4,000 farmers to supply it with 20,000
tonnes of stevia monthly for export.
A number of studies show that
stevia oers some relief for illnesses
including high blood pressure, diabetes, indigestion and heartburn, cold
and u, as well as teeth problems. It
can also help in weight loss.
It has anti-bacteria and anti-oxidant components which can prevent
wrinkles, dandru and hair loss.
Fresh stevia leaves can be used as
a sweetener in beverages, such as tea,
or as an edible food garnish.
AChepkoech@ke.nationmedia.com

Fames adopt use of epellant

cops to beat weeds and pests
BY STELLAR MURUMBA

Farmers aected by climate

change are set to benet from a
new initiative by the International
Centre of Insect Physiology and
Ecology (Icipe) that promises to
stabilise production and increase
yields nearly three fold.
The climate-smart concept addresses challenges of insect pests
(stemborers), the parasitic weed
Striga, poor soil fertility, soil moisture management and the need for
high quality animal feed.
The technology, which the Icipe scientists have been developing
for about 20 years, encourages the

use of drought-tolerant repellant

to intercrop and and trap crops to
create borders.
Another practice involves intercropping cereals with a pest repellent plant that drives away or
deters stemborers, which mainly
attack maize.
An attractant trap plant, for
instance Napier grass, is planted
around the border of crops, with
the purpose of attracting and trapping pests, said Charles Midega,
an Icipe scientist and lead study
author.
As a result, food crops are left
protected from the pests. Napier
grass also inhibits the growth of

the Striga weed.

Aside from the insect-repellant
benets of using Napier grass, its
serves as a high quality fodder.
The researchers in a study
found that in elds where farmers use the climate-smart application, only about ve per cent of
the maize crop was destroyed by
stemborers compared to 40 per
cent where the technology was
lacking.
Repellant crops eectively
controlled the Striga weed menace while an average of 20 Striga
plants emerged around each individual maize plant where outdated
farming methods were used.

A farmer from Bungoma uses

desmodium to ght Striga weed in
his maize crop. FILE

The farmers currently applying

this adapted version are living in
the drier areas of western Kenya,
eastern Uganda, the Lake Victoria basin, Tanzania and northern
Ethiopia.
The study shows that farmers
using the practice in areas experiencing dry and hot weather due to
climate change are now harvesting
around 2.5 times more than those
not using the method.
Farming systems in sub-Saharan Africa are dominated by mixed
crop-livestock systems and cultivable land is becoming less due to
population increase, said professor Zeyaur Khan, the Icipe leader
of the programme.
There is need for technologies
such as the climate-adapted push
pull which allows for intensied
agriculture.

17

Experience
taught me a few
things. One is to
listen to your gut,
no matter how
good something
sounds on paper.
The second is that
youre generally
better o sticking
with what you
know. And the
third is that
sometimes your
best investments
are the ones you
dont make.
DONALD TRUMP
US BUSINESS MAGNATE

Women are the

largest untapped
reservoir of talent
in the world.

HILLARY CLINTON
US PRESIDENTIAL CANDIDATE

How to haness you

ceativity fo business

BY SRIRAM BHARATAM

Creativity is thinking up new things, innovation is doing new things

ore youth around the world are

creating new and more eective solutions to the growing
challenges of our times. Mikaila Ulmer, a
10-year-old girl from Texas, is the face of
a thriving lemonade business. And if you
are wondering if its just a well-tracked
stand in her parents front yard, then you
are mistaken. It is a full-edged company
BeeSweet Lemonade that just got a
$60,000 (Sh6 million) investment.
What makes BeeSweet special is that
its sweetened by honey rather than sugar
or articial sweetener. Her interest with
bees began at age 4 when she was upset
and freaked out by two consecutive bee
stings.
Here in Kenya, a young dynamic group
of youth from Kibera has started a car wash
garage and employs about 16 youth. The
youth in the Kibera Vision Group are enterprising and have made the most of the
resources available to them.
Every year in Africa about 10-12 million youths enter the workforce yet only
about 6.7 million formal jobs are created
on average, leaving about three to ve million youths looking for non-existent jobs
unemployed, under employed and often
vulnerable. If the talent of these youths
is tapped and put into a path of innovation, the threat that unemployability
poses to the growth of Africa would be
controlled.
William Shakespeare once famously
said, Our doubts are our traitors, that
make us to lose the good chance to win,
fearing to attempt. If you have an innovative mind or a brilliant idea that you think
can change the world, then follow these
10 guiding principles:
Get out of your comfort zone: You
can only grow if you are willing to feel
awkward and uncomfortable when you
try something new, because innovation
begins at the end of your comfort zone.
So be willing to take chances, knowing
you could fail or even that people will
ridicule you.
Be open minded: The mind is like
a parachute; it works the best when it is
open. An open-minded person sees life
without boundaries.
Be part of/ build an ecosystem: If
you want to go fast, go alone; if you want
to go far, go together. The most important
aspect of sustaining innovation is to build,
sustain and strengthen links among the
ecosystem. Apple iPhones success is due
to the ecosystem of content producers and

consumers than to its hardware, looks or

appealing browsing features.
Get the right people: People inspire
you or drain you, pick them wisely. Jack
Welsh once said, If you pick the right
people, and give them the opportunity to
spread their wings and put compensation
as a carrier behind it, you almost dont
have to manage them. So go ahead get
the right people, some who have already
been there or who want to go in the direction you want to go.
Dont be afraid of failure: Failure
should be our teacher, not our undertaker.
Failure is delay, not defeat. It is a temporary detour not a dead-end. Failures are
important part of life; if you dont fail you
dont learn, and if you dont learn, you dont
challenge. What denes your success is
how well you rise after falling. So go ahead
and challenge yourself and your ideas.
Open up possibilities: The possibility of having a dream come true, makes life
interesting. And it is this possibility that
keeps innovators going, not the guarantee.
Be alert, be daring, be positive but most
importantly be open to new possibilities.
Remember possibilities comes in the form
of opportunities, sometimes from the least
expected, so make sure you step up when
opportunity presents itself.
Personal development time: Education is the most powerful weapon which
you can use to change the world. Personal
development is more than just polishing
talents you already have; its about growing, becoming more aware and gaining
valuable abilities that you can use to make
an impact in the world. What you spend
on your personal development returns to
you as your condence, hope, success and
ability to overcome challenges.
Leverage technology: What new
technology does is create new opportunities to do a job that customers want
done. Tech innovation has radically
changed the way consumers and retailers experience the whole new dimension
of online shopping. In an age where only
the ttest survive, adapting to technology
is seen as adapting to a changing environment. Remember, Kodak, the pioneers in
lm based technology, went bankrupt as a
result of the failure to adapt to the digital
photography revolution.
Build connections: Communication
is the human connection, the key to personal and career success. It is often said
that Your network is your net worth.
Build these connections before you need
them. Be visible and try to be a go-to person. It does not matter how small or large
your innovation is, what matters is how
strong your connections are. Your network
can take your idea from small to big.
Sriram is the founder and chief mentor of
Kuza Biashara Limited, a capacity building organisation coaching youth and SME
owners across Africa. Sri chairs Entrepreneurs Organisation for Africa. He can be
reached @Sbharatam or sri@kuzabias
hara.co.ke.

18

BUSINESS DAILY | Tuesday August 11, 2015

Entepise

PEOPLE | IDEAS | NEWS

Atai founde
Nolan Bushnell on
why life is a game
BUSINESS Pioneer investor in video games and

personal computing reects on failures and success

I have made so many massive misthe ubiquitous pizza and gaming restakes of ego, I cant tell you, says
taurant chain that has been the site of
many a US childs birthday party.
Nolan Bushnell leading the way
But despite all of those early sucinto his crumbling oce two oors
cesses and actually, partly as a result
above a slightly decrepit Los Angeles
of them the crumbling oce that Mr
row of shops.
Inside the oces of Mr
Bushnell now nds himself
Bushnells latest start-up
in is no deliberately shabbychic LA decision.
Brainrush a handful
After his breakout sucof young men are eagerly When I was 35, I
cess in the late 1970s and
banging away on keyboards late on a Saturday was insueable. early 1980s, Mr Bushnell
afternoon. Ego doesnt I thought I could made several missteps that
seem to be much in evi- do no wong and eventually led to some endence here - at least yet.
trepreneurial failures and
While the rm, which I got eally sloppy nancial ruin.
NOLAN BUSHNELL,
When I was 35, I was inwas created in 2010,
ENTREPRENEUR
suerable. I thought I could
has grand ambitions to
do no wrong and I got really
transform US education
sloppy, he says.
via games, Mr Bushnell
Now, Mr Bushnell has a habit of
remains best-known as the man behind a very dierent gaming enterreferring to his own entrepreneurial
journey as if it were a never-developed
prise Atari.
Now 72, he co-founded Atari, one of
Atari game.
the worlds rst video game companies,
Mr Bushnell has been a serial enback in 1972. It introduced the concept
trepreneur from a young age.
of personal computing, albeit in game
He founded a television tube repair
form, to millions of households around
business as a teenager that was successthe world.
ful partly because he took advantage of
his older customers penchant to unMr Bushnell is also the man who
was initially behind Chuck E Cheeses,
derestimate his technical prowess by

A developer works on a video game. Failure helps entrepreneurs to learn and grow. AFP
undercharging them for his services
but overcharging them for parts.
Later, he worked at amusement
parks while putting himself through
university to get an electrical engineering degree.
He chalks the creation of Atari up
to a bit of good luck: I was probably
the only electrical engineer that understood television, and understood
the coin-operated game business in
1969, he says.
By combining the popularity of
arcade games as well as the nascent
personal computer industry, Mr Bushnell and his partner Ted Dabney found
success with games such as Pong, Asteroids, and Centipede, which were
played, initially, on the Atari 2600
console. And unlike todays eorts - in
which blood and gore in games is both

the norm and a scourge Mr Bushnell

said the company believed rmly that
it could be successful without resorting to murder.
We felt that, you could blow up a
tank, you could blow up a plane, but
we didnt want violence against a human being, he says.
Mr Bushnell also emphasises that
the popularity of Ataris games was
primarily due to his ability to nd
and hire talented, creative workers,
including one you may have heard of
Steve Jobs.
But Mr Jobs, like a lot of his earlier
employees, had passion and as a result,
was an extremely hard worker.
He would sleep under his desk at
night, and wake up in the morning
ready to go, Mr Bushnell remembers.

That unfortunately did come with

a bit of a downside: I think part of the
reason [Steve] smelled bad was cause
he wouldnt necessarily go home every
day.
When Mr Bushnell decided to sell
Atari to Warner Brothers in 1976 for
an estimated $30 million, he carved
yet another path, becoming the rst
of a still-growing list of 20-something
Silicon Valley millionaires.
I want Jobs and [Bill] Gates and
[Mark] Zuckerberg and all of these
guys to thank me for blazing some
of [those trails], because it was much
easier once there were several notable
successes from [people] in their twenties, he says.
But with that success came hubris.
By the mid 1980s, both Chuck E
Cheese and Atari had basically imploded as had Mr Bushnells fortunes. Later eorts, including uWink,
an entertainment complex featuring
food and games as well as robotic assistants, failed to take o.
But Mr Bushnell remains undeterred, and says he still thinks he has
another successful eort in him. He
says hes taken inspiration from his
children some of whom have eschewed university in order to immediately start their own entrepreneurial
endeavours. He thinks that biotechnology and virtual reality will be game
changers in addition to his eorts
to revolutionise schooling in the US by
capitalising on research into cutting
edge brain science in order to both
personalise education and to make
courses more adaptable.
When you lose a game of chess, you
dont go and jump o a bridge, you reset
the pieces and do it again.
Its a game!
BBC

How to ceate momentum fo bigge achievements fo 2016

strongly advise developing a business plan with new goals every year.
A plan often elicits the massive action required to kick-start the metamorphosis from dream to goal.
The power of momentum is one of
the least utilised factors that can ensure
the success of a business plan. Think of
dominoes falling in a row or the giant
ywheel.
This power is a reality one should
never undervalue. Imagine entering the
New Year with four months worth of
momentum. The dierence: gigantic.
The key: start now.
Here are four ways to create momentum for 2016 today:

. Create your 2016 business

plan now.
Give yourself four cheat months
from September through December
to build momentum for 2016. Imagine
the dierence you would feel if you had
an extra four months of workouts and

proper eating habits before tackling

your new, ambitious tness goal. You
would begin your programme feeling
more condent and that much closer to
success. Business is no dierent. Create
the right habits in the nal months of
2015 to hit the ground running come
January.

. Allow yourself to dream.

Before a goal can become an action-driven plan, it must start
with an idea or vision. A pivotal part
of the business planning process is to
dream about your objectives for the
coming year and beyond. Begin with
the end in mind and visualise your goal.
In other words, it is time to reverse engineer the plan.

. Make your targets measurable.

The beautiful thing about an effective business plan is its ability to keep
us on course throughout the year. By

Businesses should set new goals each year to set the pace for achieving their vision.
referring back to the plan frequently,
we know where we are succeeding and
where we most focus increased attention. This is, of course, only possible if
your objectives are clearly written out
and if you have dened them as specic

and measureable targets.

. Work your plan.

We all have the amazing ability to
over-complicate things. Regardless of tenure or experience level, focus-

ing on the results we want and striving

to achieve these outcomes will bring
success on a higher level. Everything
will happen with consistent work, so
start by taking action now
ENTREPRENEUR.COM

Tuesday August 11, 2015 | BUSINESS DAILY

19

MONEY & MARKETS

NEWS I REVIEWS I ANALYSIS

Ex-CBK boad membes face new job estiction

PRUDENCE Proposed law limits MPC and board

members as well governor to one term in ofce

BY CHARLES MWANIKI

Central Bank of Kenya (CBK) board and

Monetary Policy Committee members
on exiting their positions will require
CBK board approval before taking up
new jobs, a new Bill has proposed.
The requirement by the Central
Bank of Kenya Bill 2015 is expected to
give the regulator a measure of control
over the jobs its former policy-making
members can take, especially in the
banking sector where they may hold
information that can give their new
employers a competitive advantage
over the rest of the industry.
Former members of the board or
Monetary Policy Committee (MPC)
shall not serve in any capacity in or for
a bank or other institution for a period
of one year immediately following the
termination of their active service for
the bank (CBK), without obtaining
the prior approval of the board, reads

the Bill.
The proposed law if approved will
replace the existing CBK Act, which
does not place conditions on the work
of former board and MPC members on
exit from Central Bank.
The Commission for the Implementation of the Constitution published the
Bill for public debate ahead of its tabling
in Parliament.
The senior members of the banks
decision making organs are directly
involved in the formulation of policies and regulations that govern the
nancial sector.
The Bill also provides the rules for
appointment and replacement of chairperson, governor and deputies, as well
as their terms of oce.
Under the proposed law the governor and the two deputies shall hold ofce for a single term of six years, and
shall not be eligible for reappointment.
Currently the governor holds a term of

The Central Bank of Kenya in Nairobi. FILE

four years, renewable once.
The new governance rules for top
ocials demand that persons who
have had non-performing loans in the
past conrmed by a credit reference
bureau report will be barred from
holding positions as the chairperson,
governor, deputy governor, a non-execu-

A staff at the Nairobi

Securities Exchange
monitors trading on
the electronic board
last month. SALATON NJAU

tive director or non-executive member

of the MPC.
The new law will also require the
board and MPC members to cede their
positions as directors, partners or signicant shareholder of any institution
under the supervision of CBK.
Those who have held these posi-

tions in the preceding one year to

their proposed appointment will also
be disqualied.
CBK in June appointed lawyer Mohammed Nyaoga as the board chairman, Patrick Njoroge the governor and
Sheila MMbijiwe as the second deputy
governor, joining Haron Sirima in that
capacity.
The draft law also seeks to enhance
the transparency of the MPC decisions
by mandating that the body publishes
the minutes of its meetings, in addition to the usual biannual monetary
policy statement and the statements
issued after each meeting explaining
the rationale of the decisions.
The minutes shall record, in relation to any decision of the committee,
the voting ratios and percentages of the
members who took part in the vote on
the decision, reads the Bill.
The MPC could, however, choose
not to publish the minutes within the
10-week period if it feels that doing so
would impede or frustrate the achievement of its decision.
cmwaniki@ke.nationmedia.com

Bitam, Safaicom lift NSE to

thid staight session of gains
BY CHARLES MWANIKI

S&P sees Kenya ipe fo Sukuk bonds

BY JOHN GACHIRI

Kenya has been tipped as one of the

African countries best positioned to
nance infrastructure projects using
Sukuk bonds in a report on Islamic
nance.
The report by rating agency Standard & Poors says Kenyas well-developed nance market, relative to other
countries in the region, can support
Sukuks and other Sharia-based products.
We believe Cote dIvoire, Nigeria,
and Kenya are well positioned for future domestic Sukuks issuance because
they have relatively well-developed capital markets by regional standards. This
could support the development of a regional Sukuks market designed to aid
tangible infrastructure development
linked to continued high economic
growth, said the report.
Standard & Poors says that Sen-

egals successful raising of $200 million (Sh20 billion) through Sukuks

in 2014 is expected to catalyse other
African countries to issue the same
instrument.
South Africa also raised $500 million (Sh50 billion) through a Sukuk in
the same year.
Treasury secretary Henry Rotich
has in the past said the Sukuks are
some of the options the government
is considering to fund infrastructure
projects in the country.
Globally countries and companies
annually raise $100 billion through Sukuks with African countries accounting
for just one per cent of the issues.
The private sector is, however,
ahead of the government with some
companies such as Kurwitu Ventures,
which is listed on the Nairobi Securities
Exchange, already issuing the Sharia
compliant bonds.
An example of the Shari-

acompliant investment product that

Kurwitu ventures is oering is the Sukuks securities (Islamic Bond)Sukuks
structuring is done by attaching real
asset and the holder of the Sukuk instrument gets his return as a form rent
or prot sharing, says the listed rm
in its 2014 end of year results.
Standard & Poors adds there are
a number of infrastructure projects
in Africa that are prime candidates
for Sukuks.
They can also have a domino eect
on economic growth prospects by enabling private initiatives and lowering
the cost of doing business. The availability of assets or the potential to create
assets acceptable under the Sharia law
through infrastructure projects could
potentially also support Islamic nance
in Africa, said the report.
Governments, however, have to put
in place regulations that support Sukuk
issues, it adds.

Britam and Safaricom led the stock

market in recording a third straight
session of gains as foreign investors
buying boosted key counters in the
market.
Britam was up 7.4 per cent to
Sh19.55 and Safaricom 5.5 per cent
to Sh15.35, emerging the top performers among the constituent stocks of
the NSE 20 Share Index, alongside
Kenya Airways which was up 4.8 per
cent to Sh5.50 in spite of the nancial
woes bedevilling the carrier.
Standard Chartered also boosted
the index, gaining Sh8 a share or 2.9
per cent, to close at Sh283.
The NSE 20 Share Index was up
68.49 points to stand at 4,483, while
the NSE All Share Index (NASI) ended
3.29 points higher to stand at 153.74.
Accounting for 80.4 per cent of
total buys, foreign investors were net
buyers for the third straight session
overall their participation stood at 77.7
per cent compared to 70 per cent in the
previous session. Britam was among
the leading gainers on local investor
demand, said Standard Investment
Bank in a market report.
Investor wealth also went up signicantly yesterday by Sh46 billion
to Sh2.152 trillion. This was mainly
on account of Safaricom, whose 80

A Nairobi Securities Exchange

employee at work. The market is
showing signs of recovery. SALATON NJAU
cents a share gain translated to a capitalisation rise of Sh32 billion on the
counter. The market is showing signs
of recovery from a sustained drop in
valuation that had last week pushed
the index below the 4,400 level for the
rst time since the beginning of 2013.
A signicant number of counters saw
limited or no price movement yesterday though.
Other top gainers included Kakuzi, up 8.6 per cent to Sh353, Crown
Paints, up 6.2 per cent to Sh69, and
Unga which recouped some of the
losses seen last week to close 6.9 per
cent higher at Sh42.75.
Only seven counters shed value led
by Car & General which was down 3.6
per cent to Sh40.50 and TPS Eastern
Africa down three per cent to Sh32.

20

BUSINESS DAILY | Tuesday August 11, 2015

MONEY & MARKETS

Kenya tops EA bloc in impact investments

FUNDING Country accounts for about half of

the Sh930bn invested between 1998 and 2004

BY JOHN GACHIRI

Kenya has become the top regional

destination for investors putting money in impact investments that target
both social and nancial gains, a new
study shows.
The report, which looked at regional impact investments made
between 1998 and 2004, says Kenya
accounted for nearly half of the $9.3
billion (Sh930 billion) invested.
The report, produced by the UK
Department for International Development (DfID), the Global Impact Investing Network (GIIN) and Nairobibased Open Capital Advisors found
Kenya had impact investments worth
$4.2 billion (Sh420 billion) which is
46 per cent of the amount that went
to the region.
Data shows Development Finance
Institutions (DFIs) such as the World
Bank are the biggest investors in
power plants, schools, banks, hospitals and other ventures having put
$3.6 billion (Sh360 billion) in such
ventures through 136 deals. Private
equity and venture capital rms in-

vested $650 million (Sh65 billion) in

221 deals over the same period. The
study says that more funding would
have gone to local ventures were it not
for security concerns.
Kenya is so dominant that some
impact investors express concern that
the landscape is already saturated.
However, ongoing security concerns
as well as challenges common to the
region have kept impact investing
activity in Kenya from reaching its
potential, says the report.

IMPACT INVESTMENTS IN KENYA

Capital disbursed

Deals
made

DFI

$3.6 billion

136

Human capital

Non-DFI

$650 million

221

Kenya oers the advantage of more

readily available human capital compared to other countries in the region,
the study says.
But like other countries in the
region, the informal nature of many
businesses poses challenges for investors, and there have been few examples
of successful exits.
Uganda and Tanzania accounted
for 13 and 12 per cent of the funds invested which translates to $1.2 billion
(Sh120 billion) and $1.1 billion (Sh110
billion) respectively. Ethiopia received

Source: THE LANDSCAPE FOR IMPACT INVESTING

IN EAST AFRICA

seven per cent or $651 million (Sh65

billion) while Rwanda got four per
cent or $372 million (Sh37 billion) in
funds. Most of the reported Kenyan
direct foreign investment deals went
into energy and nancial services.
These two sectors have received
more than 70 per cent of the total
capital disbursed directly by DFIs,
driven by large energy projects such
as dams and wind farms as well as

A section of the Ngong windpower

farm in Kajiado. The Sh70bn Lake
Turkana Wind Project is one of the
mega projects that have attracted
foreign funding. SALATON NJAU
signicant investments in local commercial banks, says the report. The
Sh70 billion Lake Turkana Wind
Project and Centum Investments
Sh30 billion Akiira One geothermal
plant are some of the mega projects in
the energy sector that have attracted
foreign funding.
Analysts say energy projects are
popular since they usually have
government guarantees that assure
investors of steady and predictable
revenues.
jgachiri@ke.nationmedia.com

Shilling stable
on sustained
tight liquidity
The shilling was little changed on
Monday, supported following steady
declines against the dollar by an acute
liquidity squeeze in the domestic money
markets.
At 10:10am, commercial banks posted the shilling at 101.05/15 per dollar,
barely changed from Fridays closing
rate of 101.00/20.
Liquidity is pretty tight, said a senior trader at a commercial bank, adding
that this would keep supporting the local currency.
The weighted average overnight
lending rate on the interbank market rose to 22.9352 per cent on Friday
from 22.1811 per cent the previous day.
Policymakers started a tightening cycle
in June, raising the benchmark interest rate by a total of 300 basis points
since then.
That helped to stabilise the shilling,
which is down 11.5 per cent against the
dollar this year, mainly due to a rmer
dollar, a surge in imports and lower
exports earnings caused by a slump in
tourism. Meanwhile Kenyas central
bank sought to mop up 17 billion shillings ($168.32 million) from the market
on Monday. -REUTERS

Miconancie Real Peoples Kenya

pot dops 26pc on shilling volatility
BY GEORGE NGIGI

Micronancier Real People recorded a 26.7 per cent drop in

prot for the full year ending
March, which it attributed to
lower gains from foreign exchange and increased provisions for bad loans.
The shilling has depreciated against the South African currency by nearly six per
cent, resulting in the drop in
forex earnings. The lender currently has South African Rand
denominated loan equivalent
to Sh1 billion which it is repaying at 12.6 per cent.
The South African microlender recorded an after tax
prot of Sh146.5 million for
the period compared to Sh185.7
million a year earlier.
The drop in after tax prots
was due to volume and price effects on the Rand denominated
loans that we hold. During the
year, we repaid a substantial
amount of this loan and at
the same time the shilling depreciated resulting to a lower
foreign exchange gain compared to previous year, said
the microlender in response

to the Business Daily queries

through email.
Real Peoples loan book
shrunk by 22.1 per cent over
the same period to Sh1.6 billion from Sh2.1 billion in 2014.
Real People management said
this was due to a decision made
to slow down loan origination
to nalise on capital drive.
The lenders non-performing
loans stood at Sh446 million
up from Sh160 million. It set
aside Sh579 million in provisions, more than 100 per cent
of the bad loans.
Micronanciers have higher default ratios compared to
banks due to the risks they take,
which is why they compensate
by pricing their loans higher
than banks.
Last week it closed the
sale of its Sh2 billion bond,
being the rst tranche of a
Sh5 billion corporate debt.
The lender is yet to disclose
how the bond performed. The
bond had a return of 13.65 per
cent for those who opt for xed
terms and 2.75 per cent above
the prevailing 182-day Treasury bill yield for the ve-year
oating rate note.

The microlender had indicated it needed more cash to

fund business growth.
In 2009, Central Bank of
Kenya introduced micronance banks which are allowed to collect deposits from
the public in order to cut the
cost of funding.
There are 12 licensed deposit taking micronance institutions in the country. However
only four converted from credit
only institutions, a fact that has
been attributed to high cost of
converting. The Association
of Micronance Institutions
(AMFI) has attributed the low
conversion rate to inability to
get new cash rich investors who
are able to dilute current owners to the required levels of 25
per cent.
Real People holding International owns 99.96 per cent of
the Kenyan subsidiary.
The lender started operations in Kenya as a credit only
micronance in 2006 and has
grown to become the largest
credit-only microlender in
Kenya. It has 10 branches in
the country and seven satellite oces.

Tuesday August 11, 2015 | BUSINESS DAILY

21

MONEY & MARKETS GLOBAL

Investos in Indias small cities line up to join stock ush

Indias mutual funds are seeing a surge
in stock investments from the hinterland as growing ranks of provincial
retail investors help drive a two-year
long rally.
Many major funds say they are seeing the fastest growth in fund ows
from areas beyond Indias 15 largest
cities, while growth from more-traditional investment centres such as
Mumbai has slowed.
Fund executives see more room
for such growth, given investors
from smaller cities account for only
$29.8 billion (Sh2.9 trillion) in mutual
funds, or 15 per cent of total share assets in India.
Indias government has long believed that attracting investors from
beyond big cities such as New Delhi
is vital to direct more household savings into equities, reducing traditional

investor preference for property and

gold. One such investor is Barun
Mukherjee, 54, a senior operator at
a steel plant in Jamshedpur, a city of
about 1 million people in the eastern
state of Jharkhand. Like many Indians, Mukherjee avoided stocks after
the global nancial crisis and subsequent stock slump wiped out the savings of many households.
But a month ago he decided to
invest 50,000 rupees ($783) into a
mutual fund. Mutual funds are providing the best returns. The market
is doing well. Indias business scene
is positive and the future seems to be
good, he said.
Mukherjee is investing in stock
markets that have surged 67 percent
since August 2013 when the rupee hit
a record low. The surge was largely
driven by foreign investors heavy

Fund ows
Major funds witness the fastest
growth in fund ows from areas beyond Indias 15 largest cities.
Growth from more-traditional investment centres such as Mumbai
has slowed.

buying. They now own nearly a third

of the equity of companies in the 30share BSE index .BSESN.
Strong gains are now also starting
to attract more retail investors in a
country where fewer than 1.5 percent

of households put money directly into

shares, compared with around 10 percent in China and 20 percent in the
United States.
Domestic net inows into equity
mutual funds reached $2 billion in
June, the second-biggest month since
January 2008. India does not have data
breaking down investments by cities,
but fund executives say investments
from secondary centers are a major
factor in the surge.
The surge is lucrative for fund houses, which can charge additional fees
on funds that have at least 30 percent
of new inows coming from smaller
cities, a measure adopted by regulators to help these fund management
rms to oset the higher marketing
costs involved.
- REUTERS

Geece hopes to
conclude bailout
discussion today

UBSs giant banner on Hong Kongs

One Peking Road skyscraper, so big it
has drawn complaints for keeping solar
panels in the shade, is a testament to
the renewed push among Swiss banks
to win business from Asias burgeoning ranks of millionaires.
Switzerlands wealth managers
have long courted Asias super-rich
amid slowing growth at home and an
international crackdown on its bank
secrecy rules that has made the country
a less attractive place to keep cash.
But the competition has recently
shifted up a gear, with the new boss
of Credit Suisse signalling he wants
to embark on a similar path to crosstown rival UBS, which in 2011 chose to
shrink its investment bank and focus
on the more stable wealth management business, especially in Asia.
Everybody wants to be in Asia,
said Andreas Brun, a banking analyst
at Switzerlands Zuercher Kantonalbank (ZKB). Its not a sudden thing
but they suddenly talk about it as the
main strategy.

Outpacing the West

DEBT Countrys nance and economy ministers

have been locked in negotiations with creditors

Greece hopes to conclude negotiations
stretch combing through the nal
with international creditors today at
text, sentence by sentence, word by
the latest, a Greek ocial said as talks
word. The negotiations began on July
continued in Athens on a new multi20. A senior Greek nance ocial told
billion euro bailout designed to keep
Reuters the aim was for euro zone the country from nancial ruin.
nance ministers to review the accord
Greeces nance and economy minon Friday, August 14.
isters were locked in negotiations with
Athens is negotiating with Eurorepresentatives of creditors on Sunpean Union institutions and the International Monetary Fund
day, which stretched until
the early hours of yesterday.
for up to $94 billion in
Greek ocials have previfresh loans to stave o
ously said they expect the
Eots ae being economic collapse and
bailout accord to go to the
stay in the euro zone.
countrys parliament for ap- made to conclude
The bailout must be
proval by August 18.
in place by August 20,
the talks, the
Eorts are being made
when Greece has a rehoizon is by
payment falling due to
to conclude the negotiations, the horizon is by Mon- Monday night o the European Central
day night or early Tuesday,
Bank.
ealy Tuesday
said a Greek ocial who
One senior EU oGREEK OFFICIAL
declined to be named.
cial said there had been
When the new bailout
outstanding cooperation from the Greek side, which was
comes to parliament for a vote it will
keen to have a deal in place the soonbe one bill with two articles one
est possible.
article will be the loan agreement
But the ocial said sticking points
and the MoU (memorandum of unfor some member states was still the
derstanding) and the second article
size of the overall bailout, which
will be the prior actions, the ocial
some wanted reduced from the up to
said, referring to measures Greece
86 billion agreed at the euro summit
needs to take for the bailout accord
last month because of the political
to take eect.
sensitivity.
A second ocial said: From 12
For the Greek side, Greek sources
midnight the two sides started the
said a key source of concern was how
nal stretch, discussing the nal

Swiss banks
step up the
battle fo Asias
supe-ich

Greek Finance minister Euclid Tsakalotos arrives for a meeting with representatives
of the International Monetary Fund at a hotel in Athens on August 9, 2015. AFP
to deal with a mountain of non-performing loans in the banking sector,
a factor likely to weigh on a potential
recapitalisation bill for the banks.
The Greek side wants to set up a
bad bank to handle this, while creditors want non performing loans
bundled and sold to distressed asset funds.
Non performing loans represented
about 35 percent of overall loan portfolios in the rst quarter of 2015, a
level likely to increase during recent
weeks from the imposition of capital

controls. The size of the rst tranche,

which is likely to be at least 20 billion
euros, was also a source of some concern among lenders.
Of that gure, Greece needs a 10
billion euro buer for bank recapitalisation, 7 billion to reimburse the
bridge loan for July and more than 3
billion to pay the ECB in August.
Until the MoU is on the table and
signed, we are still cautious, the EU
ocial said.
- REUTERS

The attractions are obvious, with a recent slowdown in growth still leaving
many Asian economies far outpacing
Western counterparts. Boston Consulting Group (BCG) forecasts private
wealth in the Asia Pacic, excluding
Japan, will grow on average by 9.7 percent a year through to 2019, more than
double the rate in Western Europe.
According to the latest Asia Pacic
Wealth Report published in October
by Capgemini and RBC Wealth Management, the regions population of
high net worth individuals -- dened
as those with investable assets of $1
million or more, excluding primary
residence, collectibles, consumables,
and consumer durables grew 17 per
cent to 4.3 million in 2013, while their
wealth grew 18 percent to $14.2 trillion.
That compared with growth rates of
13 percent and 12 percent respectively
in the rest of the world.
But turning Asian riches into protable business is no easy task for wealth
managers.
Asias growing ranks of self-made
millionaires and billionaires are
proving more active in managing
their wealth than Europeans living
o inheritances, regularly playing
banks against each other to get the
best deal. Its their own money, not the
money of the father or grandfather,
noted ZKBs Brun.
Asias super-rich also tend to spread
their money out over six banks or so.
Asia is a highly banked market,
said Claude Haberer, head of Swiss
bank Pictets wealth management
business in Asia.
- REUTERS

22

BUSINESS DAILY | Tuesday August 11, 2015

MARKET DATA
Agro Commodities Market
Early Morning wholesale commodity prices Date 10-08-2015
COMMODITY
Unit
Kg
Nairobi
CEREAL
Dry Maize
Bag
90
2900
Green Maize
Ext Bag
115
1800
Finger Millet
Bag
90
7300
Sorghum
Bag
90
3600
Wheat
Bag
90
4000
LEGUMES
Beans Canadian
Bag
90
5900
Beans Rosecoco
Bag
90
5800
Beans Mwitemania
Bag
90
5900
Mwezi Moja
Bag
90
5700
Dolichos (Njahi)
Bag
90
12000
Green Gram
Bag
90
10500
Cowpeas
Bag
90
7200
Fresh Peas
Bag
51
1800
Groundnuts
Bag
110
13200
ROOTS & TUBERS
Red Irish Potatoes
Bag
50
1700
White Irish Potatoes
Bag
50
1600
Cassava Fresh
Bag
99
2000
Sweet Potatoes
Bag
98
3500
VEGETABLES
Cabbages
Ext Bag
126
1500
Cooking Bananas
Med Bunch
22
520
Carrots
Ext Bag
138
2600
Tomatoes
Lg Box
64
5000
Onions Dry
net
13
800
Spring Onions
Bag
142
1600
Kales
Bag
50
1000
Chillies
Bag
38
2200
Cucumber
Bag
50
2000
Capsicums
Bag
50
2000
Brinjals
Bag
44
1800
Cauliower
crate
39
2000
Lettuce
Bag
51
2000
FRUITS
Passion Fruits
Bag
57
4800
Oranges
Bag
93
3200
Lemons
Bag
95
2800
Ripe Bananas
Med Bunch
14
640
Mangoes Local
Bag
126
2200
Mangoes Ngowe
Sm Basket
25
1100
Limes
net
13
800
Pineapples
Dozen
13
740
Pawpaw
Lg Box
54
1700
Avocado
Bag
90
1800
OTHERS
Eggs
Tray
300

Commodities
Mombasa

Kisumu

Nakuru

Eldoret

3100
5600
7200
3600

3200
2200
7200
3400

2600
1600
5800
2700

2800
900
6750
4950
3300

7200
6800

5800
5800
4500

5400
5400

10800
8100
7200
2200
13700

9000
9000
4050
1530
11250

1600
1600

1000
800

2500

1600

5600
5400
12600
9900
5400
1500
14410

12000
8000
2800
12000

1700
2200
1700
3100

2200
2200
2000
2500

1700
800
3100
5800
750
4000
1200
1400
2000
1750
900
3900
2000

900
350
3500
4500
1040
1500
1200
1500

350
2200
4300
750
1000
800
2000

2300
1400

1500
1500

1750

2280
3600

1800
350
3000
1800

5000
3000
2700
750
3000
500

630
1500
1700

480
3000
2000

1040
1620
1600

260

300

360

6000
4200
2500
400
2000
2000
800
960
1400
3000
360

Jakarta
An Indonesian
gemstone vendor
displays a rough
gemstone worth
$37,000 (Sh3.7
million) during
an exhibition of
gemstones at a mall
in Jakarta on August
7. A fad of collecting
rings with precious
stones is sweeping
across Indonesia. AFP

1400
900
1000
3400
1040
700
1000

African Index Weekly Commentary 03/08/2015

700
2400
700

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

Unit Trusts
Effective date: 7th August2015
MONEY MARKET FUND
OLD MUTUAL
BRITISH AMERICAN
UAP
GENCAP HELA
PAN AFRICA PESA+
AMANA
MADISSON
ICEA
CIC
CBA
STANLIB
NABO AFRICA
FIXED INCOME FUND
GENCAP HAZINA
NABO AFRICA
CIC
BALANCED FUND
OLD MUTUAL / TOBOA
BRITISH AMERICAN
GENCAP ENEZA
UAP
AMANA
MADISSON
PAN AFRICA CHAMA+
STANLIB
CIC
ICEA
NABO AFRICA
EQUITY FUND
OLD MUTUAL
OLD MUTUAL EAST AFRICA FUND
BRITISH AMERICAN
CBA
AMANA
GENCAP HISA
MADISSON
ICEA
UAP
STANLIB
CIC
NABO AFRICA
BOND FUND
OLD MUTUAL BOND FUND
BRITISH AMERICAN
ICEA
UAP
PAN AFRICA PATA+
STANLIB FUND B1
STANLIB FUND A
SHARIAH COMPLIANT
GENCAP IMAN

Gemstones galoe

CURRENCY
SH
SH
SH
SH
SH
SH
SH
SH
SH
SH
SH
USD
CURRENCY
SH
USD
SH

DAILY YIELD
7.66%
11.04%
10.98%
12.10%
12.95%
10.65%
10.28%
10.43%
11.92%
9.83%
10.29%
96.22
BUY
111.41
94.24
9.50

EFFECTIVE ANNUAL RATE

7.93%
11.67%
11.60%
12.66%
13.82%
11.19%
10.78%
10.99%
12.59%
10.26%
10.79%
96.22
SELL
115.45
94.24
9.74

SH
SH
SH
SH
SH
SH
SH
SH
SH
SH
USD

151.90
183.53
117.79
10.63
120.49
58.94
10.24
124.92
12.86
131.15
104.33

161.75
188.90
122.06
11.16
120.49
62.19
10.56
124.92
13.47
138.05
104.33

SH
SH
SH
SH
SH
SH
SH
SH
SH
SH
SH
USD

369.97
147.64
191.18
152.56
119.29
119.75
44.20
138.28
9.68
170.80
13.49
96.37

396.41
156.25
197.26
152.56
119.29
124.09
46.99
145.55
10.17
170.80
14.20
96.37

SH
SH
SH
SH
SH
SH
SH

97.37
136.72
91.39
11.16
9.63
98.23
97.47

99.68
139.51
92.31
11.16
9.93
98.23
97.47

SH

109.75

115.52

COMPANY

TICKER

SECTOR

COUNTRY

PRICE
US$

PRICE
CHANGE*

MKT CAP
US$MN

P/E

SHARES IN
ISSUE MN

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

SOUTH AFRICA
SOUTH AFRICA
SOUTH AFRICA
SOUTH AFRICA
SOUTH AFRICA
SOUTH AFRICA
SOUTH AFRICA
GHANA
MOROCCO
NIGERIA
EGYPT
MOROCCO
NIGERIA
MOROCCO
EGYPT
EGYPT
MOROCCO
MOROCCO
MOROCCO
BRVM
NIGERIA
NIGERIA
MOROCCO
NIGERIA
EGYPT
NIGERIA
EGYPT
KENYA
KENYA
MAURITIUS
EGYPT
EGYPT
TUNISIA
BRVM
NIGERIA
MAURITIUS
KENYA
TUNISIA
KENYA
KENYA

52.35
12.65
34.73
16.70
12.05
20.84
6.03
8.97
11.93
0.86
36.41
36.26
0.98
22.10
1.02
9.55
23.07
195.32
2.93
46.84
0.12
0.08
59.07
0.63
7.23
0.03
21.01
2.94
0.14
6.28
13.53
1.05
2.74
0.09
0.11
0.03
0.14
5.38
0.39
0.50

-1.5%
2.2%
3.2%
-3.1%
-1.2%
1.0%
-4.3%
-10.3%
1.6%
0.0%
0.0%
-0.8%
-5.3%
0.0%
0.0%
0.0%
-0.3%
2.5%
-0.8%
4.6%
-10.0%
-8.8%
-0.1%
-12.1%
0.8%
-10.9%
2.5%
0.1%
-7.1%
0.4%
-1.7%
0.3%
-2.0%
-11.2%
-7.8%
0.4%
-4.4%
0.6%
-7.8%
-9.4%

84,057.63
17,782.44
23,577.59
30,428.87
19,503.95
5,565.04
2,435.14
8,172.99
10,483.33
14,686.98
7,533.14
7,379.72
7,385.83
3,965.90
1,747.17
2,292.83
4,006.41
3,412.13
946.03
4,683.98
3,410.36
2,541.40
1,087.28
949.52
6,562.39
1,248.36
1,767.29
2,321.12
5,760.09
1,495.02
1,353.08
2,164.91
493.91
1,467.76
1,094.21
960.22
761.96
806.42
1,450.99
1,510.16

29.1
-7.5
9.0
12.0
13.5
110.2
-50.1
326.7
16.8
15.5
-26.6
15.3
28.4
18.2
6.5
7.4
17.9
22.6
9.0
13.7
6.7
5.0
139.1
67.7
11.9
2.8
10.9
26.2
17.7
11.7
-38.8
24.3
13.5
6.1
7.9
11.2
9.0
18.2
8.3
8.4

1,605.7
1,405.5
678.9
1,822.2
1,618.4
267.0
404.0
911.4
879.1
17,040.5
206.9
203.5
7,562.6
179.5
1,707.1
240.0
173.1
17.5
322.6
100.0
29,431.2
31,396.0
18.4
1,505.9
908.2
35,895.2
84.1
790.8
40,065.4
238.0
100.0
2,063.6
180.0
15,952.7
10,041.3
31,000.0
5,432.0
150.0
3,702.8
3,025.2

Global Commodity Prices

Effective date: 10th August 2015
METALS & MINING

SOFTS

SYMBOL CURRENCY

OIL& GAS
LAST

NET CHG

LAST

NET CHG

SUGAR NO5

USD

345.60

0.30

100 OZ GOLD

USD

1095.90

1.80

LIGHT CRUDE

USD

44.03

0.16

COFFEE

USD

162.30

-19.45

SILVER

JPY

60.00

3.00

NO 2 HT OIL

USD

1.56

0.02

COMMODITY

CURRENCY LAST NET CHNG

SYMBOL

CURRENCY

COCOA

USD

3093.00

-14.00

HG COPPER

USC

2.35

0.01

BRENT CRUDE

USD

48.87

0.26

RUBBER

JPY

186.00

1.00

PLATINUM

JPY

3890.00

18.00

GAS OIL

USD

475.25

7.75

FROZEN OJ CON1 USC

133.00

1.55

ALUMINIUM

CNY

11910.00

20.00

NATURAL GAS

USD

2.84

0.04

COTTON NO2

62.80

0.03

PALLADIUM

JPY

2385.00

0.00

KEROSINE

JPY

48500.00

220.00

USC

SOURCE: THOMSON REUTERS

Tuesday August 11, 2015 | BUSINESS DAILY

23

MARKET DATA

Chinas 7pc
second quate
gowth beats
expectations
Growth in the worlds second largest
economy, China, beat expectations in
the second quarter, but it was still the
weakest showing since the global nancial crisis.
The economy grew seven percent
from a year ago matching growth
in the rst three months of the year,
which was the lowest since 2009
when it fell to 6.6 per cent.
A weaker property market and
factory production have hampered
growth. But, Beijing has rolled out
a series of stimulus measures amid
the slowdown.
The central bank cut interest rates
for the fourth time since November
last month to boost economic activity.
Economists are, however, continuing
to call for more easing despite the better-than-expected numbers as volatility in the stock markets has sparked
concerns of nancial turmoil in the
country.

WINNERS AND LOSERS - YTD

Kakuzi

Williamson Tea
Kenya

394.00
-0.25%

- BBC

353.00
8.62%

Kapchorua Tea

Sasini
Kenya

16.10
0.00%

Kenya

Limuru Tea
229.00
0.44%

Kenya

1090.00
0.00%

229

Jan 15

Jul 15
23.77
16.58
10.15%

Earnings per share

Price to earnings ratio (p/e)
Dividend Yield

Pan
Africa
Uchumi
Kenya

Jan 15

Jul 15

Jan 15

8.17
43.21
1.06%

Earnings per share

Price to earnings ratio (p/e)
Dividend Yield

Housing
EABL Finance

67.0018.80 Kenya
Kenya
0.00%
2.17%

Kenya

Critics doubtful
Growth was expected to dip below
the seven per cent mark and come in
at 6.9 per cent for the April to June
quarter. Sure, the data may well be
massaged, manipulated and to some
extent made up.
And critics of the whole concept
will argue that attempting to sum up
three months worth of Chinese economic growth in a single number is as
futile as trying to sum up the political
events of the past three months in a
single word.
But if seen as simply the best estimate that China feels comfortable
publishing then it is useful, both in
terms of the trend and in terms of
what it may tell us about government
thinking. The seven per cent gure
is certainly conrmation that growth
remains at at best, unchanged since
the rst quarter, but coming in slightly
above what many had been expecting,
could it be a little more rose-tinted
than usual?
Of course, its too early to tell if
those market woes are yet impacting
the wider economy. Except, analysts
suggest, in one small but surprising
way; second quarter growth may actually have been boosted slightly by
the huge brokerage fees earned on all
that frantic, panicked trading.
Frederic Neumann, co-head of
Asian economic research at HSBC
expects more scal and monetary
easing in the coming months in order for China to achieve sustainable
growth.
Stimulus measures rolled out
over the past nine months are beginning to show some traction. But
work remains to be done, he told
the BBC.

Kenya

244.00
23.50
7.49%
3.30%

Jul 15
0.54
29.81
1.55%

Earnings per share

Price to earnings ratio (p/e)
Dividend Yield

CNational
& G Bank
Kenya

30.25
20.75
-3.20%
1.22%

Jan 15
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield

Transcentury
Kenya
Airways
Kenya
Kenya

Jul 15
-5.82
-39.35
2.18%

11.75
15.00
0.00%
0.00%

Jan 15

Jul 15
-0.28
0.09%

Earnings per share

Price to earnings ratio (p/e)
Dividend Yield

Crown
KPLC Berger
Kenya
Kenya

69.00
14.45
6.15%
0.35%

1
Jan 15

Jul 15

Jan 15

Jul 15

9.071.35 Earnings
perper
share
Earnings
share
13.93
7.39
Price
to earnings
ratio
(p/e)
Price
to earnings
ratio
(p/e)
1.60%
0.00%

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

Jan 15

Earningsper
pershare
share
4.21
8.82 Earnings
Pricetotoearnings
earningsratio
ratio(p/e)
(p/e)
5.58
27.66 Price
DividendYield
Yield
6.38%
2.25% Dividend

Jul 15

Jan 15

per share
3.117.48 Earnings
Earnings per share
Price to earnings ratio (p/e)
6.674.04 Price to earnings ratio (p/e)
Yield
2.64% Dividend
Dividend Yield
0.00%

Jul 15

Jan 15

Jul 15

-6.35
per share
-8.53 Earnings
Earnings
per share
-1.85
to earnings
ratioratio
(p/e)(p/e)
to earnings
-1.76 PricePrice
0.00%
YieldYield
Dividend
0.00% Dividend

2.23
9.01
6.48
7.66
0.00%
2.54%

Tracking the markets: Benchmark Index (Latest Data)

Africa
DSE All Share

USE All Share

JSE All Share Index

1,982.00
3.66%

52,014.96
-0.86%

Jan 15

Jul 15

Jan 15

NGSE All share

Tanzania

Uganda

South Africa

Jul 15

RSE All Share

Nigeria

Rwanda

2,596.40
2.16%

Jan 15

Jul 15

143.01
-0.13%

31,563.52
0.39%

Jan 15

Jul 15

Jan 15

Jul 15

World
DJ Industrial

Xetra Dax
11,530.93
0.35%

17,373.38
-0.27%

Jan 15

Jul 15

Jan 15

Jul 15

Mumbai

Tokyo

Hongkong

Jul 15

28,101.72
-0.48%

20,808.69
0.41%

24,521.12
-0.13%

Jan 15

Sensex

Nikkei

HangSeng

Frankfurt

New York

Jan 15

Jul 15

Jan 15

Jul 15

24

BUSINESS DAILY | Tuesday August 11, 2015

MARKET DATA
African Indices

Nairobi Stocks

NAME

NSE 20 Share Index

4,483.58
1.55%

Nairobi

NSE 20 - SHR IDX

LUSE ALL SHARE INDEX
JSE ALL SHARE INDEX

5,839.67

UGANDA

1,982.00

ZSE INDUSTRIAL

ZIMBABWE

143.64

CFG INDEX

MOROCCO
MALAWI

DSE ALL SHR IDX

EGX 30 IDX/D
TUN MAIN INDEX
RSE ALLSHARE IND

52 WK
HIGH

Jan 15

july 15

FTSE Pan African Index

1,142.55
0.10%

Nairobi

Jan 15

july 15

Active
Active Counters
Counters
Price fri
Prev

Total Shares

Change

Traded

5.50%

10,161,900

Safaricom

15.35

14.55

KCB

49.50

49.25

0.51%

2,830,300

Equity

42.75

43.25

-1.16%

2,025,300

Mumias

2.00

2.00

0.00%

644,800

Co-Op Bank

19.90

19.80

0.51%

579,700

Gainers
Price fri

Price fri

Net
Change

Counter

last

Prev

Kakuzi

353.00

325.00

28.00

8.62%

19.55

18.20

1.35

7.42%

Unga

42.75

40.00

2.75

6.88%

Crown Berger

69.00

65.00

4.00

6.15%

Safaricom

15.35

14.55

0.80

5.50%

British American

Chng

Losers
Counter

Price fri
last

Price fri
Prev

Car & Gen

40.50

42.00

-1.50

-3.57%

TPS EA

32.00

33.00

-1.00

-3.03%

DTBK

200.00

204.00

-4.00

-1.96%

Equity

42.75

43.25

-0.50

-1.16%

EA Cables

15.35

15.50

-0.15

-0.97%

MARKET UPDATES

PCT.CHNG

OPEN

HIGH

LOW

CLOSE

1.55%

4,415.09

4,415.09

4,415.09

4,415.09

-3.96

-0.07%

5,839.67

5,847.58

5,839.67

5,843.63

-449.63

-0.86%

52,404.94

52,603.01

52,014.96

52,464.59

70.00

3.66%

1,912.00

1,912.00

1,912.00

1,912.00

0.00

0.00%

143.64

143.64

143.64

143.64

20,584.73

-281.56

-1.35%

20,583.92

20,592.90

20,583.66

20,866.29

16,051.98

0.28

0.00%

16,051.70

16,051.70

16,051.70

16,051.70

NIGERIA

31,563.52

121.81

0.39%

31,441.71

31,773.68

31,396.93

31,441.71

TANZANIA

2,596.40

54.84

2.16%

2,541.56

2,541.56

2,541.56

2,541.56

EGYPT

8,028.69

17.63

0.22%

8,011.06

8,029.56

7,997.22

8,011.06

TUNISIA

5,624.39

-2.12

-0.04%

5,624.24

5,636.61

5,613.06

5,626.51

RWANDA

143.01

-0.19

-0.13%

143.01

143.01

143.01

143.20

153.74
2.19%

Nairobi

Last

NET.CHNG

Share Report
Daily share

All Share Index (NASI)

Price fri

68.49

52,014.96

NSE ALL SHARE/D

Counter

4,483.58

ZAMBIA

MALAWI ALL SHR

july 15

LAST

KENYA

SOUTH AFRICA

ALSIUG

Jan 15

LOCATION

Net
Change

%
Chng

AGRICULTURAL
100.00
EAAGADS
363.00
KAKUZI
242.00
KAPCHORUA TEA
1248.00
LIMURU TEA
27.50
REA VIPINGO
18.00
SASINI
435.00
WILLIAMSON TEA
AUTOMOBILES & ACCESSORIES
62.00
CAR & GEN
13.60
MARSHALLS
7.80
SAMEER
BANKING
18.45
BARCLAYS
141.00
CFC STANBIC
280.00
DTBK
63.00
EQUITY
55.00
HF
141.00
I&M HOLDINGS
65.50
KCB
30.00
NBK
85.00
NIC BANK
357.00
STAN. CHART.
23.25
CO-OP BANK
COMMERCIAL
ATLAS DEV & SUPPORT LTD 13.75
8.50
EXPRESS (K)
20.25
HUTCHINGS BIEMER
11.50
KQ
30.75
LONGHORN PUBLISHERS
321.00
NATION MEDIA
47.50
STANDARD GRP
40.00
TPS EA
15.60
UCHUMI
14.00
WPP SCANGROUP
CONSTRUCTION & ALLIED
95.00
ARM CEMENT LTD
180.00
BAMBURI
187.00
CROWN BERGER
17.00
EA CABLES
78.00
EAPC
ENERGY & PETROLEUM
13.15
KENGEN
10.50
KENOLKOBIL
18.50
KENYA POWER
32.00
TOTAL
23.00
UMEME
INSURANCE
40.00
BRITISH AMERICAN
12.40
CIC INSURANCE
600.00
JUBILEE
20.00
KENYA RE
28.00
LIBERTY KENYA
141.00
PAN AFRICA
INVESTMENT
84.50
CENTUM INVEST.
5.55
HOME AFRICA
KURWITU VENTURES LTD 1500.00
10.85
OLYMPIA
24.00
TRANSCENTURY
INVESTMENT SERVICES
NAIROBI SECURITIES EXCHG 28.00
MANUFACTURING & ALLIED
11.10
A. BAUMANN
165.00
BOC GASES
1050.00
BAT KENYA
30.00
CARBACID
355.00
EABL
5.35
EVEREADY EA
FLAME TREE GROUP HOLDINGS 14.00
192.00
K. ORCHARDS
3.85
MUMIAS
56.50
UNGA
TELECOMMUNICATION & TECHNOLOGY
SAFARICOM
17.90

52 WK
LOW

YTD
%

VWA
LAST
PRICE

VWA
PREV
PRICE

DAILY
PRICE
CHANGE

DAILY
TRADED
SHARES

SHARES
ISSUED

MKT CAP.
KSH 000

EPS
LATEST
12MNTH

P/E
TRAILING

PBV
TRAILING

DPS
LATEST
12MNTH

TOTAL
DIVIDEND
YIELD

30.00
113.00
115.00
650.00
27.50
11.50
240.00

-22.02%
80.56%
66.42%
41.37%
0.00%
25.29%
59.27%

32.75
353.00
229.00
1090.00
27.50
16.10
394.00

32.75
325.00
228.00
1090.00
27.50
16.10
395.00

0.00%
8.62%
0.44%
0.00%
0.00%
0.00%
-0.25%

100
4,600
700
7,000
1,000

32,157,000
19,599,999
3,912,000
1,800,000
60,000,000
228,055,500
8,756,320

1,053,141,750.0
6,918,799,647.0
895,848,000.0
1,962,000,000.0
1,650,000,000.0
3,671,693,550.0
3,449,990,080.0

0.18
8.17
-5.82
-0.28
5.85
0.54
23.77

181.94
43.21
-39.35
4.70
29.81
16.58

2.62
2.39
0.65
5.31
0.74
0.58
0.54

0.00
3.75
5.00
1.00
0.00
0.25
40.00

0.00%
1.06%
2.18%
0.09%
0.00%
1.55%
10.15%

37.25
8.15
4.50

-22.22%
22.45%
-23.33%

40.50
12.00
4.60

42.00
12.00
4.60

-3.57%
0.00%
0.00%

2,000
4,600

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

1,624,183,974.0
172,717,272.0
1,280,375,007.8

6.57
-11.90
-0.24

6.16
-1.01
-19.17

0.78
0.44
0.55

0.60
0.00
0.00

1.48%
0.00%
0.00%

14.00
90.00
193.00
37.00
20.50
106.00
45.50
16.00
47.00
256.00
17.50

-14.07%
-21.37%
-13.19%
-13.50%
-50.27%
-13.82%
-13.60%
-17.17%
-13.91%
-17.91%
-1.00%

14.40
99.50
200.00
42.75
23.50
106.00
49.50
20.75
49.50
283.00
19.90

14.35
97.50
204.00
43.25
22.75
106.00
49.25
20.50
49.50
275.00
19.80

0.35%
2.05%
-1.96%
-1.16%
3.30%
0.00%
0.51%
1.22%
0.00%
2.91%
0.51%

81,500
37,600
1,300
2,025,300
47,800
2,830,300
78,800
52,300
1,600
579,700

5,431,536,000
395,321,638
242,110,105
3,702,777,020
352,416,667
392,362,039
3,025,219,832
308,000,000
639,945,603
309,159,514
4,889,316,295

78,214,118,400.0
39,334,502,981.0
48,422,021,000.0
158,293,717,605.0
8,281,791,674.5
41,590,376,134.0
149,748,381,684.0
6,391,000,000.0
31,677,307,348.5
87,492,142,462.0
97,297,394,270.5

1.54
14.38
21.92
4.55
4.21
13.56
5.63
3.11
7.07
33.21
1.64

9.35
6.92
9.12
9.40
5.58
7.82
8.79
6.67
7.00
8.52
12.13

2.42
1.70
2.10
3.07
0.91
1.90
2.31
0.47
1.52
2.42
2.27

1.00
6.15
2.40
1.80
1.50
2.90
2.00
0.00
1.00
17.00
0.50

6.94%
6.18%
1.20%
4.21%
6.38%
2.74%
4.04%
0.00%
2.02%
6.01%
2.51%

9.50
4.50
20.25
5.00
6.45
175.00
31.50
30.00
6.40
35.00

-25.81%
0.00%
-39.66%
-25.95%
-32.32%
11.51%
-10.81%
-35.32%
-16.02%

9.50
4.65
20.25
5.50
6.85
178.00
38.75
32.00
6.65
38.00

9.50
4.60
20.25
5.25
6.85
178.00
38.75
33.00
6.50
38.00

0.00%
1.09%
0.00%
4.76%
0.00%
0.00%
0.00%
-3.03%
2.31%
0.00%

100
221,300
30,300
12,000
13,400
1,000
28,300

433,063,193
4,114,100,333.5
35,403,790
164,627,623.5
360,000
7,290,000.0
1,496,469,035 8,230,579,692.5
243,750,000 1,669,687,500.0
188,542,286 33,560,526,908.0
81,731,808
3,167,107,560.0
182,174,108 5,829,571,456.0
364,959,616 2,426,981,446.4
378,865,102 14,396,873,876.0

-0.04
-2.18
-18.34
-13.35
1.62
13.10
2.57
1.35
1.45
1.50

-237.50
-2.13
-1.10
-0.41
4.23
13.59
15.08
23.70
4.59
25.33

0.83
2.63
0.92
4.10
1.75
0.53
0.60
1.76

0.00
0.00
0.00
0.00
2.00
10.00
0.50
1.35
0.30
0.00

0.00%
0.00%
0.00%
0.00%
29.20%
5.62%
1.29%
4.22%
4.51%
0.00%

60.00
135.00
54.00
14.00
51.00

-29.07%
10.79%
-41.44%
-4.32%
1.72%

61.50
154.00
69.00
15.35
59.00

61.00
154.00
65.00
15.50
59.00

0.82%
0.00%
6.15%
-0.97%
0.00%

15,000
4,300
13,300
4,800
-

495,275,000 30,459,412,500.0
362,959,275 55,895,728,350.0
23,727,000 1,637,163,000.0
253,125,000 3,885,468,750.0
90,000,000 5,310,000,000.0

3.01
9.80
9.01
1.37
-4.30

20.43
15.71
7.66
11.20
-13.72

3.75
1.93
1.20
1.61
1.10

0.60
12.00
1.75
1.00
0.00

0.98%
7.79%
2.54%
6.51%
0.00%

8.00
7.55
13.00
20.25
16.00

-19.90%
-1.72%
10.73%
-13.54%
-17.14%

8.30
8.70
16.25
21.75
17.95

8.25
8.55
16.00
20.75
17.40

0.61%
1.75%
1.56%
4.82%
3.16%

498,400
51,500
44,200
2,100
3,500

2,198,361,456 18,246,400,084.8
1,471,761,200 12,804,322,440.0
1,951,467,045 31,711,339,481.3
175,028,706 3,806,874,355.5
1,623,878,005 29,148,610,189.8

1.29
0.74
3.31
2.26
1.34

6.43
11.76
4.91
9.62
13.36

0.27
1.92
0.73
0.75
3.18

0.40
0.20
0.50
0.70
0.90

4.82%
2.30%
3.08%
3.22%
5.03%

14.00
6.00
370.00
15.45
17.00
60.00

-38.82%
-20.31%
23.78%
-2.93%
-8.60%
-44.17%

19.55
7.70
562.00
16.65
21.25
67.00

18.20
7.65
557.00
16.55
21.25
67.00

7.42%
0.65%
0.90%
0.60%
0.00%
0.00%

152,200
131,700
4,900
24,800
1,100
18,500

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

37,896,029,632.9
20,139,646,665.6
33,660,990,000.0
11,654,151,982.2
11,383,784,353.8
6,432,000,000.0

1.31
0.43
48.00
4.48
2.14
9.07

14.92
17.91
11.71
3.72
9.93
7.39

2.18
2.49
3.15
0.65
2.15
1.93

0.30
0.10
8.50
0.70
0.50
0.00

1.53%
1.30%
1.51%
4.20%
2.35%
0.00%

45.00
2.30
1500.00
2.50
12.00

-13.11%
-40.24%
-6.73%
-22.48%

54.00
2.45
1500.00
4.90
15.00

53.00
2.45
1500.00
4.85
15.00

1.89%
0.00%
0.00%
1.03%
0.00%

128,300
72,800
4,700
9,900

665,441,775 35,933,855,850.0
405,255,320
992,875,534.0
102,272
153,408,000.0
40,000,000
196,000,000.0
280,284,476 4,204,267,140.0

10.44
-0.04
-62.40
-1.04
-8.53

5.17
-61.25
-24.04
-4.71
-1.76

1.77
0.25
0.79

0.00
0.00
0.00
0.00
0.00

0.00%
0.00%
0.00%
0.00%
0.00%

20.75

20.00

3.75%

380,700

194,625,000

4,038,468,750.0

2.13

9.74

5.53

0.38

1.83%

1.74
9.72
2.68
8.98
2.63

0.00%
4.00%
5.77%
1.72%
1.94%
0.00%
0.00%
0.00%
0.00%
1.75%
4.17%

15.00
11.10
120.00
652.00
14.00
262.00
2.65
7.00
10.50
1.35
32.00

0.00%
4.00%
-18.94%
-19.77%
-1.30%
5.41%
-9.09%
2.56%
0.63%

11.10
130.00
736.00
17.40
310.00
4.05
7.00
100.00
2.00
42.75

11.10
130.00
736.00
17.45
304.00
3.90
7.00
100.00
2.00
40.00

0.00%
0.00%
0.00%
-0.29%
1.97%
3.85%
0.00%
0.00%
0.00%
6.88%

100
12,200
536,500
108,500
19,000
35,600
644,800
1,100

3,840,066
42,624,732.6
19,525,446 2,538,307,980.0
100,000,000 73,600,000,000.0
254,851,988 4,434,424,591.2
790,774,356 245,140,050,360.0
210,000,000
850,500,000.0
161,866,804
1,133,067,628.0
12,868,124 1,286,812,400.0
1,530,000,000 3,060,000,000.0
75,708,873 3,236,554,320.8

-2.02
11.76
42.55
1.93
11.31
-0.85
0.99
0.15
-1.77
3.65

-5.50
11.05
17.30
9.02
27.41
-4.76
7.07
666.67
-1.13
11.71

526.32
0.29
0.69

0.00
5.20
42.50
0.30
6.00
0.00
0.00
0.00
0.00
0.75

11.85

3.56%

15.35

14.55

5.50%

10,161,900

40,065,428,000 615,004,319,800.0

0.80

19.19

7.68

0.64

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

Tuesday August 11, 2015 | BUSINESS DAILY

MARKET DATA

MARKET DATA
Equities & Bonds
Kenya Treasury and Infrastructure Bonds

Share Price Performance Scorecard

SCORECARD AS AT 10TH AUGUST 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
WPP SCANGROUP
STANDARD GRP
STD CHART KEN
TOTAL KENYA
TPS (EA)
TRANSCENTURY
UCHUMI SUPER
UNGA GROUP

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE

PREVIOUS
11.10
9.50
61.00
154.00
14.35
736.00
130.00
18.20
42.00
17.45
53.00
97.50
7.65
19.80
65.00
204.00
15.50
59.00
32.75
304.00
43.25
3.90
4.60
7.00
395.00
20.25
2.45
22.75
106.00
557.00
325.00
228.00
100.00
8.25
5.25
49.25
8.55
16.00
16.55
1500.00
21.25
1090.00
6.85
12.00
2.00
20.00
178.00
20.50
49.50
4.85
67.00
27.50
14.55
4.60
16.10
38.00
38.75
275.00
20.75
33.00
15.00
6.50
40.00

CLOSE
11.10
9.50
61.50
154.00
14.40
736.00
130.00
19.55
44.00
17.40
54.00
99.50
7.70
19.90
69.00
200.00
15.35
59.00
32.75
310.00
42.75
4.05
4.65
7.00
394.00
20.25
2.45
23.50
106.00
562.00
353.00
229.00
100.00
8.30
5.50
49.50
8.70
16.25
16.65
1500.00
21.25
1090.00
6.85
12.00
2.00
20.75
178.00
20.75
49.50
4.90
67.00
27.50
15.35
4.60
16.10
38.00
38.75
283.00
21.75
32.00
15.00
6.65
42.75

% 1D
0.00
0.00
0.82
0.00
0.35
0.00
0.00
7.42
-3.57
-0.29
1.89
2.05
0.65
0.51
6.15
-1.96
-0.97
0.00
0.00
1.97
-1.16
3.85
1.09
0.00
-0.25
0.00
0.00
3.30
0.00
0.90
8.62
0.44
0.00
0.61
4.76
0.51
1.75
1.56
0.60
0.00
0.00
0.00
0.00
0.00
0.00
3.75
0.00
1.22
0.00
1.03
0.00
0.00
5.50
0.00
0.00
0.00
0.00
2.91
4.82
-3.03
0.00
2.31
6.88

% 5D
0.00
0.00
-0.81
0.00
2.13
-0.94
-2.26
13.33
-9.50
2.35
4.85
5.29
3.36
-0.50
14.05
-2.44
-1.60
9.26
-0.76
5.08
13.25
6.58
-6.06
-11.95
-0.25
0.00
-2.00
5.62
-3.64
-0.71
-0.56
5.05
0.00
-1.78
0.92
1.02
6.10
2.85
3.10
0.00
-7.61
0.00
-2.84
-8.40
5.26
3.75
-5.82
8.07
1.54
0.00
-5.63
0.00
8.48
2.22
0.31
0.00
-0.64
7.20
4.82
-0.78
0.00
-0.75
3.64

% 1M
0.00
-12.04
-16.33
1.99
-5.26
3.95
-6.47
6.25
-10.00
-3.06
-12.90
-9.55
-0.65
-5.24
12.20
-9.50
-3.76
-9.23
-9.03
10.71
-4.47
0.00
-11.43
-13.58
2.60
0.00
-12.50
-12.15
-7.83
0.18
7.29
30.86
0.00
-5.68
-20.86
-10.00
6.10
-6.34
-5.93
0.00
-13.27
0.00
-6.16
0.00
-6.98
1.22
-4.30
13.08
-4.81
-4.85
-9.46
0.00
-4.06
-7.07
-3.01
-5.59
-0.64
-12.38
-1.14
-11.11
0.00
-23.56
-2.84

% 3M
0.00
-11.63
-23.60
2.67
-9.72
1.38
0.00
-21.01
-16.92
-13.00
-16.92
-19.11
-16.76
-7.44
-50.00
-16.67
-1.29
9.26
-9.03
-3.43
-8.06
1.25
-20.51
-16.67
43.80
0.00
-20.97
-28.24
-20.90
-3.77
17.67
83.20
-4.76
-13.99
-22.54
-18.18
-3.33
-6.07
-2.63
0.00
-7.61
14.74
-12.18
0.00
0.00
7.51
-19.09
1.22
-16.10
-7.55
-45.53
0.00
-9.97
-12.38
-3.88
-11.11
-0.64
-11.56
-8.42
-8.57
6.76
-38.14
-2.84

% 6M
0.00
-20.50
-26.35
0.65
-15.04
-18.22
-18.24
-32.59
-18.18
-31.09
-14.29
-22.87
-29.68
0.25
-48.12
-18.03
-3.15
-5.60
-18.13
-3.13
-17.79
-1.22
-25.00
-22.22
31.33
0.00
0.00
-41.98
-12.40
4.27
43.50
62.41
-9.09
-17.00
-49.31
-16.10
-13.00
4.84
-9.76
0.00
-11.46
7.18
-24.73
1.27
-34.43
4.53
-33.58
-20.19
-21.43
-24.62
-42.74
0.00
3.72
-29.23
17.09
-15.08
-7.19
-17.01
-20.91
-14.67
0.00
-44.58
-1.72

% 1Y
0.00
-22.64
-12.00
-15.29
5.29
-7.80
-21.80
-3.57
-34.34
10.20
-21.65
0.00
4.74
-31.00
-17.01
-6.12
-21.33
-6.43
4.38
-7.07
30.65
-31.11
36.81
0.00
0.00
-48.63
0.00
43.37
106.43
69.63
875.61
-16.58
-46.34
-8.33
5.45
12.85
-6.46
18.72
62.69
-59.71
22.45
-16.67
-42.58
-24.55
-19.51
-2.00
-45.97
0.00
19.92
-26.98
7.69
-19.15
13.97
-8.71
-5.43
-8.57
0.00
-47.01
25.74

ISSUE

MATURITY ISSUED VALUE

DATE

DATE

IN MILLIONS

AUG 10, 2015

COUPON TRADED
(%)

YIELD (%)

PREVIOUS
PRICE(%)

TOTAL VALUE
TRADED(KSH)

ISSUE NO.
TWO YEAR BONDS
FXD 3/2013/2YR

26-AUG-13

24-AUG-15 17,927.40

12.9390

100.8908

FXD 4/2013/2YR

24-DEC-13

21-DEC-15 25,251.00

11.5530

100.6244

FXD 1/2014/2YR

24-MAR-14

21-MAR-16 20,000.00

10.8030

100.0237

FXD 2/2014/2YR

26-MAY-14

23-MAY-16 20,130.15

10.7930

99.9909

FXD 3/2014/2YR

25-MAY-15

22-MAY-17 20,223.35

10.8900

97.9678

FXD 1/2015/2YR

23-JAN-15

20-FEB-17 23,592.55

11.4700

101.0594

FXD 2/2015/2YR

29-JUN-15

26-JUN-17 7,194.56

12.6290

100.3199

FIVE YEAR BONDS

FXD 2/2010/5YR

30-NOV-10

23-NOV-15 14,973.10

6.6710

98.3936

FXD 1/2011/5YR

31-JAN-11

25-JAN-16 22,083.10

7.6360

98.1667

FXD 1/2012/5YR

28-MAY-12

22-MAY-17 31,079.55

11.8550

100.9859

FXD 1/2013/5YR

29-APR-13

23-APR-18 20,240.75

12.8920

102.9309

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

100.4719

FXD 1/2014/ 5YR

28-APR-14

22-APR-19 25,540.95

10.8700

96.9751

FXD 2/2014/ 5YR

23-JUN-14

17-JUN-19

16,418.25

11.9340

100.1528

FXD 1/2015/ 5YR

29-JUN-15

22-JUN-20 11,996.96

13.1930

96.7463

TEN YEAR BONDS

FXD 1/2006/10YR

27-MAR-06

14-MAR-16 3,451.05

14.0000

102.1563

FXD 2/2006/10YR

29-MAY-06

16-MAY-16 5,028.10

14.0000

102.8875

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

99.3434

FXD 2/2008/10YR

28-JUL-08

16-JUL-18

10.7500

99.3210

FXD 3/2008/10YR

29-SEP-08

28-SEP-18 4,151.60

10.7500

99.2873

13,504.70

FXD 1/2009/10YR

27-SEP-09

15-APR-19 4,966.85

10.7500

96.5948

FXD 1/2010/10YR

26-APR-10

13-APR-20 19,394.15

8.7900

87.8868

FXD 2/2010/10YR

1-NOV-10

19-OCT-20 18,849.90

9.3070

90.0522

FXD 1/2012/10YR

25-JUN-12

13-JUN-22 16,803.75

12.7050

100.5957

FXD 1/2013/10YR

1-JUL-13

19-JUN-23 12,643.05

12.3710

98.3747

FXD 1/2014/10YR

25-MAY-15

26-MAY-25 5,063.88

12.1800

97.8447

25-SEP-06

11-SEP-17

4,031.40

13.7500

105.0256

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

105.6743

FXD1/2007/15YR

26-MAR-07

7-MAR-22 3,654.60

14.5000

109.0397

FXD2/2007/15YR

25-JUN-07

6-JUN-22

7,236.95

13.5000

99.3108

FXD3/2007/15YR

26-NOV-07

7-NOV-22

17,568.00

12.5000

99.4391

FXD1/2008/15YR

31-MAR-08

13-MAR-23 7,830.90

12.5000

100.6070

12.5000

98.3299

ELEVEN YEAR BONDS

FXD1/2006/11YR
TWELVE YEAR BONDS

Corporate Bonds
AUG 10, 2015

25

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE

ISSUE
MATURITY
ISSUED VALUE
DATE
DATE
IN MILLIONS

ISSUE NO.
CENTUM BOND SENIOR UNSECURED FIXED RATE AND EQUITY LINKED NOTES
CTNB.BD.18.09.17/13.50
26-SEP-12
18-SEP-17
CTNB.BD.18.09.17/12.75
26-SEP-12
18-SEP-17
CTNB.BD.08.06.20/13
15-JUN-15
8-JUN-20
CTNB.BD.08.06.20/12.5
15-JUN-15
8-JUN-20
CTNB.BD.08.06.20/12.5V
15-JUN-15
8-JUN-20
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
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
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
CHASE BANK FIXED MEDIUM TERM NOTE
CHBD.BD.02/06/22-0044-13.5
10-JUN-15
2-JUN-22

COUPON
(%)

PREVIOUS TOTAL VALUE

PRICE (%) TRADED(KSH)

FIFTEEN YEAR BONDS

2,917.10
1,250.80
3,899.22
2,100.77
2,100.77
1,480.60
196.50
1.00
500.00
4,239.70
760.30
621.50
1,378.50

13.5000
12.7500
13.0000
12.5000
13.2500
13.6000

105.2550
99.9620

99.1677
100.0000

12.7500
12.7500

100.7057
100.0000

13.0000

100.0000
100.0000

97.91
2,402.09

12.5000

100.0000
100.0000

14,062.00

12.5000

101.8271

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

FXD1/2009/15YR

26-OCT-09

7-OCT-24

FXD1/2010/15YR

29-MAR-10

10-MAR-25 20,823.73

10.2500

88.1557

FXD2/2010/15YR

25-APR-11

8-DEC-25

13,513.10

9.0000

79.3778

FXD1/2012/15YR

24-SEP-12

6-SEP-27

21,089.45

11.0000

89.6086

FXD1/2013/15YR

25-FEB-13

7-FEB-28

40,886.33

11.2500

90.0657

FXD2/2013/15YR

29-APR-13

10-APR-28 17,385.85

12.0000

95.8528

9,420.45

TWENTY YEAR BOND

FXD1/2008/20YR

30-JUN-08

5-JUN-28

20,360.95

13.7500

106.2954

FXD1/2011/20YR

30-MAY-11

5-MAY-31

9,365.80

10.0000

79.8372

26-NOV-12

1-NOV-32

43,082.72

12.0000

91.6965

28-JUN-10

28-MAY-35 20,192.50

11.2500

82.0191

28-FEB-11

21-JAN-41 23,888.95

12.0000

88.2403

8.0000

93.8370
103.0000

FXD1/2012/20YR

13.0000

100.0000

TWENTY FIVE YEAR BOND

8.5000

94.6653

FXD1/2010/25YR

3,429.00
226.00

12.8000

100.0000

THIRTY YEAR BOND

6,000.00

13.0000

99.9562

INFRASTRUCTURE BONDS

2,000.00

13.0000

99.9807

IFB 1/2009/12YR

23-FEB-09

8-FEB-21

19,726.85

12.5000

105.1593

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

98.5524

IFB 2/2010/9YR

31-AUG-10

19-SEP-19 32,871.55

6.0000

83.9920

IFB 1/2011/12YR

3-OCT-11

18-SEP-23 43,447.35

12.0000

100.7940

IFB 1/2013/12YR

30-SEP-13

15-SEP-25 38,841.68

11.0000

IFB 1/2014/12YR

27-OCT-14

12-OCT-26 35,060.55

11.0000

IFB 1/2015/12YR

30-MAR-15

15-MAR-27 25,695.35

11.0000

SDB 1/2011/30YR

5,514.50

12.5000

97.8453

5,000.00

13.0000

102.4933

5,080.00

12.9500

102.0180

7,000.00

12.7500

100.9239

9,047.35

12.2500

100.2003

4,822.40

13.2500

99.9882

94.3676
11.0000

86.4538
83.5794

800,000,000

26

BUSINESS DAILY | Tuesday August 11, 2015

MARKET DATA
Global Markets & Currencies
Bluechips

Currencies

FTSE 100

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 $
SOURCE CBK

BUY
101.02
156.42
110.79
7.99
34.83
20.73
6.78
15.27
27.50
76.84
102.72
81.20
11.52
12.21
14.85
1.58
13.03
72.94
26.93
16.26
74.71

SELL
101.21
156.74
111.02
8.01
34.99
20.87
6.90
15.40
27.56
77.02
103.03
81.37
11.55
12.25
14.88
1.59
13.06
73.10
26.99
16.30
74.91

MEAN
101.11
156.58
110.90
8.00
34.91
20.80
6.84
15.34
27.53
76.93
102.87
81.29
11.54
12.23
14.86
1.59
13.04
73.02
26.96
16.28
74.81

US Dollar
BACKGROUND
EURO
JAPANESE YEN
BRITISH POUND
SWISS FRANC
AUSTRALIAN DOLLAR
SWEDISH KRONA
CANADIAN DOLLAR
CHINESE YUAN
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
THAI BAHT
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
DIJIBOUTI FRANC
ALGERIAN DINAR
EGYPT POUND
ETHIOPIAN BIRR
GHANAIAN CEDI
GAMBIAN DALASI
ERITREA NAFKA
GUINEA FRANC
KENYA SHILLING
COMORO FRANC
LIBERIAN DOLLAR
LESOTHO LOTI
LIBYAN DINAR
MOROCCAN DIRHAM
MALAGASY ARIARY
MAURITANIAOUGUIYA
MALAWI KWACHA
MOZAMBIQUE METICAL
NIGERIAN NAIRA
RWANDA FRANC
SC RUPEE
SUDANESE DINAR
SUDAN POUND
ST HELENA POUND
SIERRALEONLEON
SAO TOME DOBRA
SOMALI SHILLING
SWAZILAND LILAGENI
TUNISIAN DINAR
TANZANIA SHILLING
UGANDA SHILLING
CFA FRANC
CFA FRANC
MAURITIUS RUPEE
SOUTH AFRICA RAND
ZIMBABWE DOLLAR

BID
1.0945
124.69
1.5491
0.985
0.7366
8.7717
1.3139
6.2094
8.2377
1.7989
6.8168
64.3355
2.7911
134.03
63.88
3.8326
24.676
283.94
21
3.8056
127.03
1.7866
59.99
0.3975
11.6971
2.288
35.16
1.5494
6.882
187.87
2.8536
0.5078
18.9
55.98
3.4077
4.0275
21.546
109.56
476.6
3.673
125.45
1532.2
0.0984
918
100.63
177
100.8626
7.83
20.5775
3.925
39.1
14.97
7000.01
101.05
445
87
12.7057
1.3787
9.8507
3287
318
517.5
38.11
198.7
686
12.9507
200.02
2025.5
1.56
4320
21711
661
12.7057
1.9679
2100
3535
599.27
599.27
35.53
12.7161
378

ASK
1.0946
124.7
1.5495
0.9854
0.7368
8.7747
1.3142
6.2099
8.2489
1.8074
6.8179
64.3445
2.7931
134.33
63.89
3.8331
24.726
284.34
21.25
3.8116
127.78
1.7874
60.19
0.398
11.7076
2.306
35.18
1.55
6.8869
187.92
2.8542
0.5087
19.08
56.55
3.4197
4.034
21.6
109.92
479.6
3.6731
126.45
1582.2
0.0987
938
101.73
178
101.2126
7.8301
20.9775
3.975
40.1
15.47
7500.01
101.25
446
88
12.7348
1.3837
9.8587
3345
330.6001
522.5
39.4
198.8
697
13.2655
201.02
2035.6
1.562
4396
23058
668
12.7448
1.9709
2110
3545
607.27
608.27
35.73
12.7261
381

DAILY
INDEX (REGION/COUNTRY)

CLOSE

CHG

YTD

52 WEEK

% CHG % CHG

HIGH

LOW

3-YR
% CHG % CHG

GLOBAL
THE GLOBAL DOW (WORLD)

2,517.77

-6.89

-0.27

0.6

2,639.52

2,378.15

-0.6

THE GLOBAL DOW EURO (WORLD)

2,167.13

-11.2

-0.51

11.3

2,305.98

1,752.10

21.9

15

DJ GLOBAL INDEX (WORLD)

325.14

-0.86

-0.26

1.3

341.62

301.71

1.3

9.8

DJ GLOBAL EX U.S. (WORLD)

228.68

-0.55

-0.24

1.6

248.65

217.05

-4.4

5.7

10.3

ASIA PACIFIC
DJ ASIA-PACIFIC TSM (ASIA-PACIFIC)

1,468.98

2.21

0.15

1,619.39

1,384.31

-1.4

6.5

ALL ORDINARIES (AUSTRALIA)

5,472.30

-127.8

-2.28

1.6

5,954.80

5,131.00

0.8

8.3

S & P/ASX 200 (AUSTRALIA)

5,474.80

-135.3

-2.41

1.2

5,982.70

5,152.30

0.7

8.5

DOW JONES CHINA 88 (CHINA)

291.82

4.3

1.5

-1.5

408.69

185.09

54.7

13.7

SHANGHAI COMPOSITE (CHINA)

3,744.20

82.67

2.26

15.8

5,166.35

2,194.42

70.6

20.2

HANG SENG (HONG KONG)

24,552.47

177.19

0.73

28,442.75

22,585.84

0.9

6.9

S & P BSE SENSEX (INDIA)

28,236.39

-61.74

-0.22

2.7

29,681.77

25,329.14

11.5

17.1

JAKARTA COMPOSITE (INDONESIA)

4,770.30

-36.26

-0.75

-8.7

5,523.29

4,712.49

-5.6

5.3

NIKKEI 300 (JAPAN)

340.94

1.54

0.45

19.9

340.94

238.07

37.4

31.1

NIKKEI STOCK AVG (JAPAN)

20,724.56

60.12

0.29

18.8

20,868.03

14,532.51

40.2

33

TOPIX INDEX (JAPAN)

1,679.19

5.61

0.34

19.3

1,679.89

1,177.22

36.7

31.2

KUALA LUMPUR COMPOSITE (MALAYSIA)

1,682.65

-11.99

-0.71

-4.5

1,878.89

1,673.94

-8.5

NZSX-50 (NEW ZEALAND)

5,868.66

-60.03

-1.01

5.4

5,957.85

5,049.63

16.1

17.9

KSE 100 (PAKISTAN)

36,222.63

-6.25

-0.02

12.7

36,228.88

27,774.43

23.3

35.2

PSEI (PHILIPPINES)

7,532.52

-57.43

-0.76

4.2

8,127.48

6,880.34

9.5

12.5

STRAITS TIMES (SINGAPORE)

3,196.66

...

CLOSED

-5

3,539.95

3,154.21

-3.5

1.3

KOSPI (SOUTH KOREA)

2,010.23

-3.06

-0.15

4.9

2,173.41

1,882.45

-1

2.1

COLOMBO STOCK EXCHANGE (SRI LANKA)

7,370.60

-6.64

-0.09

7,605.79

6,782.43

6.5

14.6

WEIGHTED (TAIWAN)

8,442.29

-7.27

-0.09

-9.3

9,973.12

8,442.29

-7.1

SET (THAILAND)

1,428.79

-1.79

-0.13

-4.6

1,615.89

1,408.07

-6

5.7

EUROPE
STOXX EUROPE 600 (EUROPE)

397.07

-3.63

-0.91

15.9

414.06

310.03

22.2

13.9

STOXX EUROPE 50 (EUROPE)

3,441.25

-30.7

-0.88

14.6

3,591.47

2,781.33

18.7

10.5

EURO STOXX 50 (EURO ZONE)

3,637.80

-30.67

-0.84

15.6

3,828.78

2,874.65

21

14.2

EURO STOXX (EURO ZONE)

374.54

-3.13

-0.83

17.2

392.35

288.41

23.9

15.7

ATX (AUSTRIA)

2,487.96

6.23

0.25

15.2

2,681.44

2,032.13

11.5

6.7

BEL-20 (BELGIUM)

3,797.04

-44.44

-1.16

15.6

3,905.71

2,887.73

25.1

17.3

PX 50 (CZECH REPUBLIC)

1,033.30

-1.4

-0.14

9.1

1,058.40

901.30

8.7

OMX COPENHAGEN (DENMARK)

887.35

-16.25

-1.8

31.4

923.55

611.68

38.7

25.9

OMX HELSINKI (FINLAND)

8,656.04

-77.45

-0.89

11.6

9,374.42

7,010.83

19.2

17.1

CAC 40 (FRANCE)

5,154.75

-37.36

-0.72

20.6

5,268.91

3,918.62

24.3

14.3

DAX (GERMANY)

11,490.83

-94.27

-0.81

17.2

12,374.73

8,571.95

27.5

18.1

BUX (HUNGARY)

22,492.78

71.94

0.32

35.2

22,850.53

15,686.69

31.6

8.2

FTSE MIB (ITALY)

23,705.00

-106.09

-0.45

24.7

24,031.19

18,078.97

23.5

17.4

AEX (NETHERLANDS)

496.61

-4.62

-0.92

17

509.24

376.27

27.3

14.1

ALL-SHARES (NORWAY)

681.05

1.9

0.28

9.9

711.22

575.27

3.7

12

WIG (POLAND)

52,425.20

7.13

0.01

57,379.45

49,593.68

5.7

8.3

PSI 20 (PORTUGAL)

5,589.77

-34.96

-0.62

16.5

6,324.88

4,606.25

3.3

4.9

RTS INDEX (RUSSIA)

832.47

12.04

1.47

5.3

1,275.60

629.15

-28.9

-16.8

IBEX 35 (SPAIN)

11,178.20

-75.4

-0.67

8.7

11,866.40

9,669.70

10.6

15.7

SX ALL SHARE (SWEDEN)

530.28

-3.08

-0.58

11.9

564.90

405.51

23.3

16.9
13.4

SWISS MARKET (SWITZERLAND)

9,408.27

-49.72

-0.53

4.7

9,526.79

7,899.59

13.7

BIST 100 (TURKEY)

78,427.06

-376.02

-0.48

-8.5

91,412.94

72,943.50

-1

6.5

FTSE 100 (U.K.)

6,718.49

-28.6

-0.42

2.3

7,104.00

6,182.70

2.3

4.8

FTSE 250 (U.K.)

17,655.83

-90.01

-0.51

9.8

18,263.46

14,426.74

15.8

15.5

AMERICAS
DJ AMERICAS (AMERICAS)

504.75

-1.42

-0.28

-0.5

524.44

464.33

3.7

11.8

MERVAL (ARGENTINA)

11,167.45

-91.62

-0.81

30.2

12,593.07

7,581.72

35.7

65.8

SAO PAULO BOVESPA (BRAZIL)

48,577.32

-1434

-2.87

-2.9

61,895.98

46,907.68

-12.6

-5.6

S & P/TSX COMP (CANADA)

14,302.70

-103.21

-0.72

-2.3

15,657.63

13,705.14

-5.9

6.4

SANTIAGO IPSA (CHILE)

3,102.83

-3.06

-0.1

-2

3,377.92

3,018.91

-3.5

-9.3

IPC ALL-SHARE (MEXICO)

44,862.14

-59.08

-0.13

46,357.24

40,225.08

1.7

CARACAS GENERAL (VENEZUELA)

15,252.71

-224

-1.45

295.3

15,580.47

2,139.62

612.9

294.7

SOURCE: WSJ MARKETS

Global Indices
NAME

LOCATION

LAST

NET.CHNG PCT.CHNG

DJ INDU AVERAGE

NEW YORK

17,373.38

-46.37

OPEN

HIGH

LOW

CLOSE

-0.27%

17,414.94

17,414.94

17,279.08

17,419.75

FTSE EUROTOP 100

LONDON

3,155.26

3.28

0.10%

3,152.43

3,164.64

3,129.86

3,151.98

XETRA DAX PF/D

FRANKFURT

11,530.93

CAC 40 INDEX/D

PARIS

5,176.20

40.1

0.35%

11,545.63

11,550.30

11,431.76

11,490.83

21.45

0.42%

5,179.84

5,186.88

5,133.63

5,154.75

FTSE MIB/D

MILAN

23,844.70

SMI PR/D

SWITZERLAND 9,455.61

139.7

0.59%

23,705.00

23,844.70

47.34

0.50%

9,431.76

9,456.72

HANG SENG INDE/D

HONG KONG

24,521.12

-31.35

-0.13%

24,433.66

24,602.67

24,135.64 24,552.47
20,617.05 20,724.56

23,659.78 23,705.00
9,372.67

9,408.27

NIKKEI 225 INDEX

TOKYO

20,808.69

84.13

0.41%

20,618.31

20,820.86

ALL ORDINARIES

AUSTRALIA

5,504.95

32.615

0.60%

5,472.30

5,508.10

5,456.80

5,472.33

STRAITS TIMES/D

SINGAPORE

4,111.70

6.78

0.17%

4,108.77

4,111.70

4,091.38

4,104.92

SSE COMPOSITE/D

SHANGHAI

3,928.82

184.62

4.93%

3,786.03

3,943.62

3,775.85

3,744.20

S&P SENSEX/D

MUMBAI

28,101.72

-134.67

-0.48%

28,250.78

28,417.59

28,017.85 28,236.39

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

LAST
783.60
3193.00
1459.00
344.40
1099.00
580.50
940.50
260.70
516.00
4270.00
468.10
279.04
3785.50
1099.00
871.85
1169.50
1845.00
381.00
1598.00
465.65
3533.00
270.00
1042.00
1293.00
3076.00
1937.00
1810.82
167.70
89.90
1184.25
635.00
269.80
318.00
201.40
1439.83
683.60
1184.00
578.27
508.50
551.50
2593.00
1067.00
3357.00
2668.00
262.10
2918.00
158.40
373.00
1332.00
273.00
80.66
505.50
546.00
182.90
854.62
7905.00
226.10
834.00
452.30
1502.00
1189.00
6194.00
339.40
1853.50
1088.00
1873.50
551.00
2581.00
801.50
3838.00
506.50
3368.50
261.50
3096.00
2385.44
524.50
5350.00
440.30
1187.00
1181.00
124.00
1541.33
910.00
2184.00
544.50
222.60
211.71
2955.00
882.54
477.05
241.35
1512.80
4224.00
1435.00
5175.00
5.70

CLOSE
800.50
3211.00
1481.00
351.10
1091.00
589.50
951.00
261.30
523.00
4320.50
471.50
281.25
3805.00
1109.50
870.00
1191.00
1849.00
385.60
1608.00
465.30
3485.00
271.10
1043.00
1294.00
3056.00
1941.00
1827.00
167.60
89.60
1191.00
638.00
272.40
321.00
203.20
1450.00
683.00
1181.00
587.70
509.50
548.50
2615.00
1063.00
3352.00
2697.00
262.60
2930.00
159.20
374.00
1328.00
274.30
82.13
504.50
546.00
184.40
860.50
7905.00
227.00
864.00
434.60
1528.50
1191.00
6247.00
345.50
1885.50
1093.00
1906.00
555.00
2587.50
804.00
3903.00
506.00
3401.00
267.70
3100.00
2383.00
519.00
5300.00
441.90
1189.00
1181.00
125.50
1542.00
926.40
2190.00
547.50
228.50
215.80
2950.00
887.50
446.70
241.85
1535.00
4214.00
1441.00
5180.00
5.25

NET.CHNG
-16.90
-18.00
-22.00
-6.70
8.00
-9.00
-10.50
-0.60
-7.00
-50.50
-3.40
-2.15
-19.50
-10.50
1.50
-21.50
-4.00
-4.60
-10.00
0.35
48.00
-1.10
-1.00
-1.00
20.00
-4.00
-16.00
-0.10
0.30
-6.00
-3.00
-2.60
-3.00
-1.80
-10.00
1.00
3.00
-9.50
-1.00
3.00
-22.00
4.00
5.00
-29.00
-0.50
-12.00
-0.80
-1.00
4.00
-1.30
-1.47
1.00
0.00
-1.50
-6.10
0.00
-0.90
-30.00
17.70
-26.50
-2.00
-53.00
-6.10
-32.00
-5.00
-32.50
-4.00
-6.50
-2.50
-65.00
0.50
-32.50
-6.20
-4.00
-9.00
5.50
50.00
-1.60
-2.00
0.00
-1.50
-1.00
-16.40
-6.00
-3.00
-5.90
-4.10
5.00
-5.00
30.20
-0.50
-23.00
10.00
-6.00
-5.00
0.45

PCT.CHNG
-2.11%
-0.56%
-1.49%
-1.91%
0.73%
-1.53%
-1.10%
-0.23%
-1.34%
-1.17%
-0.72%
-0.76%
-0.51%
-0.95%
0.17%
-1.81%
-0.22%
-1.19%
-0.62%
0.08%
1.38%
-0.41%
-0.10%
-0.08%
0.65%
-0.21%
-0.88%
-0.06%
0.33%
-0.50%
-0.47%
-0.95%
-0.93%
-0.89%
-0.69%
0.15%
0.25%
-1.62%
-0.20%
0.55%
-0.84%
0.38%
0.15%
-1.08%
-0.19%
-0.41%
-0.50%
-0.27%
0.30%
-0.47%
-1.79%
0.20%
0.00%
-0.81%
-0.71%
0.00%
-0.40%
-3.47%
4.07%
-1.73%
-0.17%
-0.85%
-1.77%
-1.70%
-0.46%
-1.71%
-0.72%
-0.25%
-0.31%
-1.67%
0.10%
-0.96%
-2.32%
-0.13%
-0.38%
1.06%
0.94%
-0.36%
-0.17%
0.00%
-1.20%
-0.06%
-1.77%
-0.27%
-0.55%
-2.58%
-1.90%
0.17%
-0.56%
6.76%
-0.21%
-1.50%
0.24%
-0.42%
-0.10%
8.57%

LI E

MANAGEMENT

Tuesday August 11, 2015 | BUSINESS DAILY

LIFE
Moal authoity
should be evey
leades goal
Page 29

27

SPORTS
Leaked doping
epot casts shadow
ove Kenyan
athletes Page 31

PERSONAL FINANCE

ENTREPRENEURSHIP Before throwing all your time and money into an idea, follow these steps to test its viability
ability in mind the rst 30 to 90 days. Its possible. But have a budget reserve so you can survive
if things go leaner than expected.

Decide on a legal entity.

Filing paperwork to start a business costs
money. Youll need to account for city or municipality licensing, state incorporation or business entity fees and more. Do a thorough search
ahead of time to determine what the ling fees
are before starting out.
Often in the initial test phase for your
small business, it can be wise to start as a sole
proprietor, as it means less paperwork and upfront expenses. That can save you some big-time
cash while you determine the viability of your
business. But youll want to weigh the benets
versus risks and then speak with a lawyer or tax
professional to decide which is smarter for your
short term versus long term goals.
You can always le for a business entity once
youve proven in the rst three to six months
of business that youve got a viable, sustainable model.

Take care of the money.

How to stat a small business

without getting ovewhelmed
A

great small business always starts

seeking investment or nancing, and even
out as an idea, but you have to
then, start out by testing your ideas rst
transform that idea into action.
before investing lots of time and money.
Thats where many individuals can start
To get started, create a simple oneto feel overwhelmed.
page business plan that is
Its understandable to
a high-level overview of
freeze up at the deluge of
the business.
Many smallthings that are required to
Dene your vision.
business
get a business started.
What will be the end reHere are six ways to
sult of your business?
ownes fall
break down the process.
Dene your mission.
into the tap
This should explain the
Write a one-page busireason your company
of tying to
ness plan
exists.
ceate the
The key to a successful
Dene your objectives.
What are you going to do
small business, especialwolds biggest
what are your goals that
ly in the startup phase, is
business plan
to keep things simple and
will lead to the accomplishcosts low. Costs dont just
ment of your mission and
mean your monetary costs
your vision?
but also your time.
Outline your basic strategies. How are
you going to achieve the objectives you
Many would-be small-business owners fall into the trap of trying to create the
just bulleted?
worlds biggest and most robust business
Write a simple action plan. Bullet out
plan. Youre only going to need that if youre
the smaller task-oriented actions required

to achieve the stated objectives.

Thats it. It might be longer than one page,
but it will surely be more organised and shorter than a full business plan, which could take
weeks to write. If you need more information
on the one-page business plan, or want to write
out a full-blown nance-centred business plan,
you can check out the book Small Business,
Big Vision: Lessons on How to Dominate Your
Market from Self-Made Entrepreneurs Who
did it Right.

Decide on a budget.
If you are self funding, be realistic about
numbers and whatever you anticipate your
budget to be. Ive found that an additional 20
per cent tacked on for incidentals is a realistic overage amount that helps you plan your
burn rate.
Your burn rate is how much cash you are
spending month over month. Its an important
number for you to gure out to determine how
long you can stay in business before you need
to turn a prot.
You should set up your business with prot-

Whatever business entity you decide on,

keep the funds separate from your personal
accounts. This is a big mistake that makes tax
time and nancials confusing.
Dont pay for an account or get any kind
of credit lines yet, just get a holding place you
can keep your money separated from your personal accounts.

Get your website.

Regardless of whether your business will be
brick or mortar or online, youll need a website
and that means securing a URL. Popular domain sites such as HostGator and Go Daddy
will allow you to search for the website domain
address of your choice and buy it for as little as
$9.99 (Sh1,000).
If youre starting an online business, you
can tie your domain to an online shopping cart
and store front such as Shopify for a monthly
fee, or you can build a basic website on top of
your URL with do-it-yourself drag-and-drop
site builders such as Weebly.

Test sales.
Try to spread the word in inexpensive and
creative ways.
If you have a service-based business, get involved with your local chamber of commerce
or small-business chapter immediately and ask
what resources are available for you to speak,
present or share information about your business. If you have a product-based business, test
the viability of your product at local swap meets,
farmers markets or other community events to
test what the public thinks.
Drive trac to your website through simple
Facebook Ads with capped budgets, or set up a
simple Google AdWords account with a budget
cap to test if trac is going to your site.
- ENTREPRENEUR

28

BUSINESS DAILY | Tuesday August 11, 2015

Life: Management
PURPOSE Focus on adding value with your business idea rather than creating wealth to avoid frustration

Bewae of losing
you focus in the
pusuit fo success
growing and young people like you are
harnessing technology to change the way
Africa is doing business.
STAYING AHEAD
But most of us were caught up in The
CANUTE WASWA
Beast and Air Force One, to hear that.
More people would have loved to take
seles with the plane and his fortied vehihe Taj Mahal is one of the most beau- cle. There was even speculation on where
tiful and costly tombs ever built and Air Force One spent the night.
theres a legend that surrounds it.
The Global Entrepreneurship Summit,
When the favourite wife of Indian ruler which was held for the rst time in Africa,
Shah Jahan died, he ordered for the Taj brought together business owners, policyMahal to be built as a memorial to her. He makers, educators and investors.
Success for many entrepreneurs in our
placed her con in the middle of a parcel
of land, and construction began
context is often hindered by a lack
around it.
of resources and partnerships.
This was the thrust of the sumBut several years into the
The univese
mi how do we spur the spirit
venture his grief for his wife
will neve egave way to his passion for the
of entrepreneurship across the
wad those
project. One day while he was
region?
who seek to
surveying the site, he reportEntrepreneurship
emget befoe
edly stumbled over a wooden
powers people to no longer be
box and had it thrown out. It
subject to aid agencies, but to
giving
was months before he realised
be part of something as they
it was his wifes con.
pursue their dreams. But sucThe original purpose for the memo- cess only comes about when opportunity
rial got lost in the details of construction. is turned into timelines, milestones and
Theres a lesson here: its called misplaced sequencing.
values.
Being an entrepreneur is hard. It takes
When US President Barack Obama was sacrice. There are no overnight successes.
here a few weeks ago, he praised Africa for The real backstory is much more tumulits economic advancements, calling it one tuous.
of the fastest growing regions in the world.
Success is almost never linear. SomeHe said: People are being lifted out of pov- times there are ups and downs, rights and
erty, incomes are up, the middle class is lefts, forwards and backwards. The goal is

Always remember
the reason you
started your
business to avoid
getting lost in the
middle. FILE

to take one or two steps forward every day,

with the understanding that there will be
setbacks.
My favourite analogy is comparing entrepreneurship to mountain climbing. Successful climbers dont dwell on the peak;
they focus on the next 20 feet, and then the
next, and then the next. Building a business
takes time. You need to be able to weather
the storms.
If your primary motivation for being in
business is to acquire wealth rather than to
create and add value, then youve started o
on the wrong foot. The universe will never reward those who seek to get before giving.
Wealth is a result of consistently providing
solutions to the problems of humanity.
The platform of the summit was to facilitate networking. Working with other people

can increase and improve your ventures reputation. But you must also follow up with contacts and ensure that people get value from
their conversations with you.
Virgin Group founder Richard Branson
says he starts a business only if it will improve peoples lives. He was unhappy with
the customer service he was getting from
British Airways, so he started a new airline,
Virgin Atlantic, which is focused around the
customer.
So in your quest to build your Taj Mahal,
try to remember the purpose for which you
are building it.
Mr Waswa is a management and HR specialist and managing director of Outdoors Africa. E-mail: waswa@outdoorsafrica.co.ke

Hees how to build esilience in the face of obstacles

When something is stressing us
out, we tend to immediately react to
the challenge in a physical or emotional way that leads to a limiting
outcome and triggers more stress. In
order to solve problems, we need to
create opportunities around them,
which requires us to rst digest the
situation. The next time you freak out,
take a massive inhale into your chest
and exhale that pressure, knowing solutions require space to develop.
When things are not working, focus on these positive habits to avoid getting
overwhelmed. FILE
rials are inevitable in life and tion, when we lose that deal or when
certainly in entrepreneurship, we lack resources that we are forced
but believe it or not, the pain to nd solutions and build our inner
core of resilience. The greater your incan be good for you. I
Obstacles are what test our hearts, ner resilience, the greater potential
minds and bodies so that we can ac- you have. So the next time a storm
quire wisdom and build our stamina approaches, weather it with these
for the greater things we will encoun- good habits:
ter and pursue in life.
It is when we dont get that promo- Soften around a challenge

Realise obstacles create opportunities

Instead of hating yourself and the
problem, stop to consider the opportunities that this challenge may be
oering you. Obstacles are dened
as a thing that blocks ones way or
prevents or hinders progress. When
things reach this rock bottom place,
our creative instincts kick in and guide
us toward alternative positive paths

that would have never been considered. The benet of hitting lows is that
most directions that follow point up.
Allow tomorrow to be a new day
Disaster has hit. You have never been
this stressed out in your whole life.
Your need for control has you obsessing for a solution that isnt ripe yet and
youre judging yourself for obsessing.
The best thing for you in this moment
is to hit the hay and realise you have
the chance to start over tomorrow. And
if you start the new day with a positive
attitude, youll be blown away by the
progress you can make.
Meditate
If you cant shut your mind or worry
o, Invite the world in if you cant
escape it. Rather than the impossible
task of emptying your mind, give your
mind something specic on which to
meditate. Take a comfortable seated

position and close your eyes. Begin

to draw your attention to everything
around you: the sounds in the room,
out in the hallway, and in the street.
Relax, letting it all in like a complex
song that the world is oering to you.
Begin to notice the smells, the warmth
or coolness of the air, the touch of the
chair or the oor against your body,
even the texture of your clothing
against your skin.
Notice how the world around you
connects with your body. Then draw
your attention from the surface of your
skin to the muscles, uids, and bones
of your inner body. Connect with your
bodys pulse. Feel free to stay here for a
while. When you nish, begin to move
outward from center, reversing the
process, expanding from your inner
world back into the world outside.
Open your eyes.
- ENTREPRENEUR

Tuesday August 11, 2015 | BUSINESS DAILY

29

Life: Management

Moal authoity should be evey leades goal

INFLUENCE This allows the wielder to

speak into uncomfortable social issues

and to communicate to peoples hearts
FAMILY BUSINESS
PETER MUTUA
Her husband is known in the [citys] gates, when he sits among the elders of
the land.
Proverbs 31:23

resident Barack Obamas recent trip

to Kenya was lled with hype, high
expectations and a sense of accommodation rarely seen in a local population
that is prone to endless complaining.
Nairobis city centre was virtually
locked down for the entire duration of
the visit as residents chose to stay at
home, go upcountry or wait for hours on
end on roadsides for a glimpse of the US
president.
Mr Obamas visit was timely for three
reasons: it was made when he was a sitting president, it came during his second
term when there is no danger of losing
an election and it targeted a country and
continent for which he is a reigning role
model.
When he spoke at the Kasarani Indoor
Arena, President Obama addressed Kenyas well-known ailments corruption,
nepotism and the backward thinking
that would rather see an opportunity go
to waste than to see it benet a person who
one considers an enemy.
On July 26, Kenyans were introduced to
the concept and power of moral authority;
power that is based on more than the trappings of oce, wealth or celebrity status;
inuence that does not accrue purely from

President Uhuru Kenyatta welcomes President Barack Obama at the Kasarani arena. The
US leader spoke on issues of leadership, corruption, nepotism and human rights. FILE
an electoral process, from inheritance or
from a fanatical following.
Moral authority is dierent from political and economic power. It allows the
wielder to speak into uncomfortable social issues and to communicate directly
to peoples hearts and souls.
However, powerful as it is, moral authority has an expiry date by when it must
either be used or lost as the leader fades in
inuence either because of age or declining
nancial or political fortunes. Those who
understand moral authority should use it
judiciously for maximum impact.

In Kenya, the people most likely to

wield moral authority are Leaders of
Family Business. They do not depend on
a ckle electorate for their wellbeing and
are (hopefully) in thriving businesses.
It requires that they put their lives in
order and deliberately and creatively engage the public within their areas of inuence in matters that need urgent attention.
This would transform them into alternative points of reference for the community.
Consistently building on this foundation
allows family businesses to inuence local
aairs that are beyond the scope of politi-

cal leadership.
However, Leaders of Family Business
should recognise that the window within
which to exercise moral authority is small.
This inuence is best exerted where the
leader has great inuence and when they
are either ascending or at the height of
power. To attempt to do it long before or
after the peak of ones inuence can be an
exercise in futility.
The power behind moral authority lies
in the manner in which a leader conducts
his/her public and private aairs. While
people will naturally defer to authority
that comes either from an oce or the nancial resources one has, the license to
speak into peoples hearts and lives is only
granted to those who carry themselves in
an exemplary manner.
Power that stems purely from rank or
wealth, no matter how genuine it feels,
should not be mistaken for the moral authority to provide counsel or guidance to
others. When this is attempted, the leader
sounds hollow and untrue.
While no one is perfect, Leaders of
Family Business should live in such a way
that their private and public lives have a
semblance of order, are free of scandal
and show a record of quickly repenting
of wrongdoing.
Every Leader of Family Business who
has moral authority on account of his/her
character and reputation should use this
power to speak into matters concerning
the community. This is because such leaders are not beholden to an electorate, have
a genuine interest in peoples welfare and
are taken seriously even when audiences
have diculty accepting their message.

Peter Mutua is a Humphrey Fellow,

leadership development consultant and
author of the book The African Prince
available on Amazon Kindle. His email
address is p.m.mutua@googlemail.com

Ae you an entepeneu? Hee is how to nd out

verywhere you look, young

modern thought leaders are
cashing in on the entrepreneurial lifestyle. Theyve got the
ashy headlines, lucrative funding
even their own exclusive dating
websites. Society is worshipping at
the altar of venture capitalism and
extolling open-concept oce spaces.
And entrepreneur has become a
trendy buzzword.
But the problem is, once everyone
embraces that buzzword and becomes
an entrepreneur, will that once distinguished title lose its meaning?
Who qualies?
The biggest thing that separates
entrepreneurs from everyone else is
that they tend to build new ideas in

relatively unchartered territories in

order to target a big exit.
Looking deeper, you can drill
down to three other main dierences between entrepreneurs and mainstream small business owners:
Funding: Entrepreneurs tend to
take on outside capital to grow their
businesses. This may be in the form of
venture capital funding, crowd-funding, microloans or angel investors.
Strategy: A major staple of entrepreneurship is having an exit strategy for your business. Entrepreneurs
usually arent in it for the long haul.
Theyre trendsetters who cash in on
innovation, then move on to the next
big thing.
Tech: Entrepreneurs tend to have

inherently strong tech backbones.

Theyre always searching for tech
tools to make their ideas run more
eciently and lucratively.
These dierences still leave a lot
of gray area in this discussion. If
youre still unsure whether youre
an entrepreneur, ask yourself these
questions.

2. How do you feel about personal

development?

4. How do you spend your downtime?

Entrepreneurs are highly focused on

learning everything they can about
their industries. Theyre always on,
consuming information and learning,
just for the sake of learning.

1. Are you a risk-taker?

No doesnt always mean no for entrepreneurs. To them, no means they

need to more expertly hone their pitch
and try again. This tireless, persistent approach of entrepreneurs is what
brings them a network of doggedly
supportive connections and billions
of dollars in funding every year.

If youre an entrepreneur, this is actually a trick question because you dont

have any downtime. Theres no such
thing as work-life balance; everything bleeds together because your
entire life revolves around both your
business and your industry.
At some point soon, the term entrepreneur will become stigmatised,
and a new word will emerge to take its
place. But what a pity that will be for
the hard-working wunderkinds who
have based their entire professional
pursuits around achieving entrepreneurial status.

One of the most distinguishing qualities of entrepreneurs is their tolerance

to risk. Where other people see volatile scary situations, entrepreneurs see
opportunities and possibilities. Their
clear-eyed vision of the future allows
them to take what appear to be crazy
risks without batting an eyelash.

3. What happens when someone

tells you no?

- ENTREPRENEUR

30

BUSINESS DAILY | Tuesday August 11, 2015

Life: Brand Management

Use data on Aficas gowing

middle class with a toothpick

TIMES CROSSWORD 24,928

1

9
10

11

12

13

14

MARKET TALK

15

16
17

BONIFACE NGAHU

18

21

22

ast week we looked at the myths

and realities of Africa Middle Class
population based on the deliberations at the Marketing and Social Research
Association (MSRA) Convention 2015.
Here are the trends of this sandwich
class and how you can apply them to spot
and size up market opportunities.

23

24

26

25

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28

Dont substitute judgment with statistics: Paul Omondi of Milward Brown

argued that statistics should not be a
substitute for judgment. This is a good
reminder of a book that is dedicated to
the subject: How to Lie with Statistics.
Mr Omondi gave an example of the
Africa Development Bank (AfDB) which
put a monthly income of Sh10,000 for the
middle class, resulting in a population of
more than 40 per cent. The Kenya National
Bureau of Statistics (KNBS) cuts o the
income at Sh20,000 putting the estimate
at 20 per cent while the Standard Bank
would put the cut o at Sh60,000, reducing the Kenyan middle class population
to four per cent.
Based on KNBS data the average wage
per employee has grown from Sh33,527 in
2010 for the public sector to Sh49,740 in
2014 and Sh32,714 for the private sector
to Sh44,807 in the period. When adjusted
for ination the growth in the wage per
employee is ve per cent for the public
sector and three per cent decline decline
for private sector.
This means that the purchasing power
of salaried workers has remained at or
declined in the last four years. Note that
the public sector employees have a small
advantage over the private sector ones.
This means is that depending on your
intentions you need to apply judgment on

20

19

Across
1 Given material for dress, girl shortly in
is business (6)
4 Escape from aircraft, jet I once crashed
(8)
10 Chamber, one thats high, said to be
suffering from disorder (9)
11 Contribution made by one eccentric,
about a penny (5)
12 Fellers and gals holding party back (7)
13 Fool in bare skin, with nothing on (7)
14 Losing old fruit in the cooker (5)
15 Obese little boy is beginning to
tremble he is resigned (8)
18 I wheel it out when a tactful comment
is required (5,3)
20 Leave ones bed and dress (3-2)
23 With nothing to sing? Thats close (7)
25 Wind, one that may be identical in
direction (7)
26 Castles where criminals are
beheaded (5)
27 Methodical design, or a shambles (9)
28 Prisoner has to attract scorn (8)
29 For the two of us, I received farewells
(6)

A man sells clothes on the street. Data on Africas middle class shows that a large population is in the oating class that can easily fall back into poverty. FILE

how you dene the middle class.

If you are looking at the mortgage market, you may want to use the Standard
Bank basis to increase the cut o. If you
are looking at mobile phones, mass market
or development the AfDB or KNBS basis
would work depending on the segment
you want to target. Most importantly, always have in mind that the basis of your
denition is a judgment call.

The oating middle class can easily

fall back to poverty.
If real wages are not growing and in
some cases are declining those at the bottom of the middle class can easily fall back
into poverty. This bottom class is referred
to as the oating middle class and is based
on those who are just above the spending
of $2 per day.
The other middle class segments include lower, middle and upper. With the
dollar appreciating against the local currencies by more than 20 per cent recently,
those at the borderline will fall out of the
middle class.

A good example is Ethiopia, one of the

fastest growing economies in the world
and the second most populous country
in Africa. Mikreab Aduguna, a researcher from Ethiopia, highlighted the growth
story, which included the growing urban
culture, rapidly improving education penetration and mega projects such as the
great Ethiopian Renaissance Dam that
will produce 6,000 megawatts of power
when complete.
The number of breweries has doubled
in a few years with increasing per capita
alcohol consumption. He highlighted an
Ethiopian middle class population at 30
per cent, two thirds of which is in the oating class. Anyone using these numbers
should be aware of the oating class and
not look at the whole middle class as one
thing. It is okay to celebrate the good story but spend time and intellectual capital
when investing on the promise.
The writer is the marketing director of
SBO Research. E-mail: bngahu@sborese
arch.co.ke, Twitter @bngahu

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
8

11

13

12

A 20-year-old East Texas man jumped into a

quickly arranged marriage after a judge told
him last month he had a choice of getting
hitched or spending 15 days in jail on an assault charge.
According to court documents obtained on Friday, Smith County Judge Randall Rogers gave
the option to Josten Bundy, of Tyler, Texas, who
was arrested in March on a charge of assault
causing bodily injury, a misdemeanour. Bundy
had gotten into a ght with the ex-boyfriend of
his then girlfriend and now wife.
The judge said he would grant probation if Bundy married his 19-year-old girlfriend, Elizabeth
Jaynes, within 30 days, write Bible verses and

attend counseling. If he declined, he would go

to jail, according to a transcript of the proceedings obtained by Tyler TV broadcaster KLTV.
Is she worth it? Rogers asked Bundy, according to the transcripts.
The brides father was angry at the judge for
pressuring the pair into marriage and was
looking into whether this was judicial misconduct, he told KLTV. He cant do this by court
ordering somebody to be married, the brides
father, Kenneth Jaynes, said.
The couple, who had talked about eventually
getting married but did not have immediate
wedding plans, is happy that they have tied the
knot. But did not appreciate being forced into it.

16

15

14

17
18

20

19

22
23

26

28

25

24

27

29

SUDOKU 054

21

055

How to play

Man gets maied to avoid jail time

Down
1 Showing signs of stress, having stroke,
say, over in prison (8)
2 The rest, having told an untruth,
confess (3-4)
3 For something to eat, feline swallows
an entire limb (9)
5 Raise, near the boundary, garlic
mustard (4-2-3-5)
6 Face 151 females (5)
7 Lacking respect, I am beginning to
order Pope around (7)
8 Seeing zilch, losing heart (6)
9 Sort of woollen tapes, all at once ...
(2,3,4,5)
16 ... became less heavy, and get held in,
somehow (9)
17 Add nine extra pages (8)
19 Marx with acceptable weapon (7)
21 This port tastes extremely tolerable
(7)
22 Stuff forming part of roof a brick
(6)
24 Two points ahead, girl produces
result (5)

SUDOKU PUZZLE

TIMES 25,927
10

29

Tuesday August 11, 2015 | BUSINESS DAILY

SCANDAL Newspaper alleged many medal winners had suspicious blood tests

medal maathon
Leaked doping epot casts shadow 32winnes
among
of suspicion ove Kenyan athletes dug cheats - epot
T
T
he athletes who pound the dirt trails
snaking through Kenyas lush Rift Valley region have spawned a local industry
around their talent and forged a reputation as
the worlds nest long-distance runners.
But explosive media claims of widespread
doping in their ranks, including allegations
against Kenyas Olympic medal winners, have
cast a shadow over a sport that many in this
impoverished region see as a ticket to wealth
and stardom.
Kenyan athletics chiefs have dismissed
the doping claims as a smear campaign, yet
coaches and runners have warned that the
country needs to face up to the problem if it is
to protect its rich running legacy and lucrative
sponsorship deals.
It worries everyone. Not (just) athletes,
even their families, said Moses Kiptanui, 44,
a three-time world steeplechase champion who
in 2013 became the rst high-prole athlete to
warn that Kenya faced a doping problem.
Their earnings will come down and nobody
will want to put money in sponsorship, said
Kiptanui, a son of subsistence farmers who used
his athletics earnings in the 1990s to build hefty
dairy and maize businesses.
Britains Sunday Times newspaper and German broadcaster ARD/WDR last weekend said
they had been leaked suspicious blood results
from more than 800 athletes, including 77
Kenyans.
The Sunday Times alleged that athletes who
won a fth of Kenyas 92 Olympic and world
championship medals between 2001-2012 had
suspicious blood results.
An ARD/WDR documentary aired on Saturday showed a hidden camera purportedly
revealing Kenyan athletes being injected with
performance-enhancing drugs. It also alleged
that corrupt Athletics Kenya (AK) ocials had
covered up failed tests.
Kenyas London Marathon winners Wilson Kipsang and Eliud Kipchoge this week
pleaded with athletics fans across the globe to
keep faith in them, saying top Kenyan runners
were clean.

Yet others conceded a cloud of suspicion

now hangs above them all.
If someone now wins a race, in their minds
(people) are always saying athletes of Kenya
are using drugs, which is not good, said Lucas
Rotich, winner of the Hamburg Marathon in
Germany.
In the last three years 33 Kenyans have
failed drugs tests but only Rita Jeptoo, winner of Boston and Chicago Marathons, can be
classed as a top runner. Her two-year ban in
January shocked Kenyas athletes as it showed
doping was not restricted to low-level runners
seeking get-rich-quick schemes.
Athletics Kenya has in the past blamed unscrupulous doctors and pharmacists for doping,
saying they target desperate athletes seeking
overnight riches. AK had also banned two
foreign coaches.
But athletes and coaches in Iten say AK
ought to shoulder some of the blame.
Kipsang, who won silver at the London Olympics and hosts runners in his
Iten-based hotel, said AK has fallen short
in creating awareness and making sure
control measures were in place to stop
cheats.
Its high time AK stands up and
tells Kenyans the truth about (doping).
They have been dodging the truth for
long, which has seen them give foreigners
fodder to tarnish Kenya, added Silas Kiplagat, who won 1500m silver at the 2011 world
championships.
AK has denied corruption allegations and
said the latest doping claims were an eort
to destabilise Kenyan athletes ahead of this
months world championships in Beijing.
Barnaba Korir, AKs Nairobi branch chairman, said: The name of Kenya has been put on
the map of the world as a result of our runners,
so denitely resources must be put into this.
A government task force last year started
investigating doping in Kenya but AK refused
to cooperate. The police have also questioned
top AK ocials about why they made personal
withdrawals from a bank account where Nike
had deposited sponsorship money.

Many Kenyans are clean, its some few individuals that need to be exposed. But if you
dont expose them, then (how) do we know who
is clean and who is not clean. Nobody knows,
Kiptanui said.

Disgraced Kenyan marathoner Rita Jeptoo. CHRIS

OMOLLO

hirty two medal winners at the worlds

six top city marathons were among the
hundreds of long distance runners with
suspicious blood test results revealed in a leak,
a newspaper reported on Sunday.
The leaked blood tests have jolted the world
of international athletics since a German broadcaster and a British newspaper rst published
reports about them a week ago.
Britains Sunday Times and Germanys ARD
say the results from the database of the sports
governing body, the International Association
of Athletics Federations (IAAF), show evidence
of widespread cheating among long distance
runners. The news organisations said the data
showed that between 2001 and 2012 a third of
Olympic and world championship endurance
and middle distance running medals had been
won by athletes who, at some point in their careers, had given a suspicious blood test.
The Sunday Times said many of the suspect
runners had also won medals in the six most
prestigious city marathons: in Berlin, Boston,
Chicago, London, New York and Tokyo.
Seven of the 24 mens and womens winners of the London marathon between 2001
and 2012 were athletes who at some point in
their careers had produced a suspicious blood
test result, the Sunday Times said. It has not
named the athletes.
Last week, the IAAF stripped Russian runner Liliya Shobukhova of all her medals since
2009, including three victories in the Chicago
marathon and one in London.
The London marathon said in a statement on
Sunday: We continue to be at the forefront of
anti-doping measures for marathon runners as
we are determined to make marathon running
a safe haven from doping but we cannot do it all
on our own and rely heavily on the IAAF.
We are therefore very concerned by the
allegations made in the Sunday Times today
and we will be discussing the implications of
the allegations with the IAAF.
The IAAF has defended its drugs testing
procedures strongly and refutes suggestions
it has turned a blind eye to doping.
- REUTERS

SPORTS BRIEFING
Namibia rugby captain pleased
with progress after Kenya win
Namibia captain Jacques Burger says his
side have learned valuable lessons from
their 46-13 Africa Cup victory over Kenya in
Windhoek over the weekend and believes
they are on track with their World Cup preparations.
Namibia ran in six tries as they gained revenge for a defeat by Kenya in the World Cup
qualication competition 12 months ago in
Madagascar.
It is a further sign of their improvement under Welsh coach Phil Davies, who has won
all three of his tests in charge so far after replacing Danie Vermeulen in June.

Loose-forward Burger said this win, coupled

with twin successes over Russia last month,
have boosted condence for the rugby minnows.
We have three wins on the trot now and
that is very important for our condence
leading up to the Rugby World Cup, we are
working very hard, nding our feet and I am
happy with our progress, Burger said.
We tried a lot of things today and towards
the end we opened it up a little bit too much,
very valuable lessons were learnt today and
hopefully we can improve even more next
weekend against Zimbabwe.
Namibia scored their points through a brace
of tries for centre Darryl de la Harpe, to go

with further scores from fullback Botha.

McIlroy prepares for PGA

as he recovers from injury
Rory McIlroy arrived at Whistling Straits for
18 holes of practice on Saturday as he bids
to return to competitive golf from an ankle
injury and defend his PGA Championship title at the links-style venue next week.
The Northern Irishman, out of action since
he ruptured a ligament in his left ankle while
playing soccer with friends on July 4, does
not have to commit to the tournament,
which starts on Thursday, until his ofcial
tee time for the opening round.
World number one McIlroy has been

grouped with Masters and US Open champion Jordan Spieth and British Open winner
Zach Johnson for the rst two rounds of the
years nal major at Whistling Straits in Kohler, Wisconsin.
Great 18 holes this morning with haza136
@ Whistling Straits Golf Club, McIlroy
tweeted, referring to his good friend Harry
Diamond. According to Golf Channel, McIlroy said after his round that he has now
played 90 holes of golf since recovering
from his ankle injury. Should he tee off as
expected on Thursday, it would be just 40
days since he suffered an injury that some
medical experts said might take about three PGA Champion Rory McIlroy. AFP
months to heal.

31

32

BUSINESS DAILY | Tuesday August 11, 2015

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France probes Gabon ofcial

12 dead as Mali siege ends

France is investigating Gabon

President Ali Bongos chief of staff
on suspicion of taking a bribe to help
secure a contract, a judicial source
has said. French police had detained
Maixent Accrombessi for questioning
last week, a move sharply condemned
by Gabon, but released him after
nding that he had diplomatic
immunity.

At least 12 people have been killed

during a nearly 24-hour siege of
a hotel in central Mali seized by
suspected Islamist gunmen as
security forces stormed the building
and released some of the United
Nations workers trapped inside. Four
UN contractors were freed in the predawn raid, but Malis UN peacekeeping
operation MINUSMA said ve people
associated with the mission had died,
while Malian ofcials counted three
hostages dead.
Five soldiers and four gunmen,
including one who ofcials said
had been strapped with explosives,
were also killed, a Defence Ministry
spokesman said.

Terrorists killed in Istanbul

Two terrorists were killed in an
exchange of re with police after an
explosion at a police station in the
Istanbul neighbourhood of Sultanbeyli
which injured at least 10 people, the
Dogan news agency said yesterday.
Istanbul police headquarters
conrmed in a statement that three
police ofcers and seven civilians were
wounded in the blast. The attackers
also opened re on the US consulate
building weeks after Turkey launched a
synchronised war on terror.

results show, with voters favouring

the Buenos Aires governors policy
of gradual change after eight
years of leftist government. Scioli
is in outgoing President Cristina
Fernandezs Front for Victory party
and has promised to slowly modify her
policies, which include heavy state
control of the economy. The No 2 votegetter is Mauricio Macri, known to be
business-friendly.

Scioli ahead in presidential race

Ruling party candidate Daniel Scioli
is ahead in Argentinas presidential
primary with 36.8 per cent, early

Health
NEWS

by his refusal to recognise his defeat

by Alassane Ouattara in a 2010
election.

Soldier kills four colleagues

Gbagbo party picks candidate
The party of Ivory Coasts ex-president
Laurent Gbagbo has chosen its leader,
Pascal Af NGuessan, to run in an
October 25 presidential election that
will mark its return to electoral politics
following a string of boycotts since
a brief 2011 war. Gbagbo is awaiting
trial before the International Criminal
Court for his alleged responsibility for
crimes against humanity committed
during the conict, which was sparked

A Rwandan soldier serving with the

UN peacekeeping mission in the
Central African Republic has shot dead
four Rwandan troops and wounded
eight others before being shot dead,
according to the Rwandan Defence
Ministry.
The incident occurred at the Rwandan
battalions headquarters in the
capital Bangui. Investigations have
commenced to establish the motive
behind this deplorable shooting,
spokesman Brigadier General Joseph
Nzabamwita said.

S Korea condemns North

Abe to apologise over WW2

South Koreas military threatened

retaliation against North Korea
yesterday after it accused the North
of planting land mines inside the
Demilitarised Zone border that
wounded two soldiers last week,
calling it a cowardly act of provocation.
There was evidence to conclude that
soldiers from the North crossed the
Military Demarcation Line recently to
plant the mines, and Pyongyang would
be made to pay a severe price, the
Souths military said at a news brieng.
We strongly condemn this cowardly
act, which would be unthinkable for
a normal military, Major General Ku
Hong-mo of South Koreas Joint Chiefs
of Staff said.

Japanese Prime
Minister Shinzo
Abe will include the
words apology
and aggression
in his statement
marking the 70th
anniversary of the
end of World War Two, NHK public TV
said, an apparent nod to critics who
fear he will dilute past apologies.
An initial draft did not include the
word apology, some media reports
had said, which would likely anger
China and South Korea where bitter
memories of Japans sometimes brutal
past occupation and colonization run
deep.

Clots: Patients miss out treatment

New way to combat malaria

Bodybuilding supplement faulted

The formation of blood clots in the veins

known as venous thromboembolism is the
most common cause of preventable death
in hospitals. A new study has now revealed
that signicant numbers of patients are
not receiving recommended treatment to
prevent these clots from forming even
after health care providers underwent
educational program

You are likely to have seen it on CSI, the

spray detectives use at crime scenes to
illuminate tiny blood particles invisible
to the naked eye. A new study by Washington University scholars suggests the
compound could be used to combat malaria. The study reveals how luminol triggers an amino acid present in hemoglobin
to kill the malaria parasite.

Researchers assessing the use of bodybuilding supplements say some men use
them to such an extent that they qualify
as a eating disorder. The ndings of their
study were presented at the American
Psychological Associations Annual Convention held this year in Toronto. For
many, the study says, the use of the supplements had become more prominent.

TOTAL SHARES TRADED

EQUITY TURNOVER IN SH
BONDS TURNOVER

PREVIOUS

2,152.91

2,106.73

19,040,600

17,333,800

499,216,706

469,883,241

806,300,000

744,300,000

TOTAL DEALS (BONDS)

14

TOTAL DEALS (EQUITY)

1,556

1,239

NSE 20 SHARE INDEX

4,483.58

4,415.09

NSE ALL SHARE INDEX

153.74

150.45

PINEBRIDGE INDEX

797.03

783.14

FTSE NSE KENYA 15 INDEX

197.94

190.31

FTSE NSE KENYA 25 INDEX

197.03

188.92

FTSE NSE KENYA BOND INDEX

91.58

91.58

FTSE ASEA PAN AFRICAN INDEX 1,142.55

1,141.36

HE SAID
I cant change the
direction of the wind,
but I can adjust my
sails to always reach
my destination.

Jimmy Dean
Singer
(1928-2010)

Download the NMG PLAY app on Google Play

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

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

Nairobi: 3-day forecast

Tue
Wed
Thu

Mostly Sunny
Mostly Sunny
Mostly Sunny

High

Low

25C

14C

25C

14C

24C

16C