Business daily apr 15th 2015 by HABA KWA HABA

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WEDNESDAY, APRIL 15, 2015

NO. 2074

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Wangusi opens f≥esh battle fo≥ cont≥ol of ≥adio and TV content Proposed rules give market regulator new powers to clamp down on broadcasters BY OKUTTAH MARK

NAKURU

Egerton University students stage the play ‘ I Am My Father’s Son’ during the National Drama Festival at the Menengai High School Hall yesterday. SULEIMAN MBATIAH

CBK steps in to halt shilling slump BY CHARLES MWANIKI

The Central Bank of Kenya yesterday moved to calm the market as the shilling continued its slide to a new three- year low of 93.40 units to the US dollar. A CBK statement to newsrooms said the shilling was being weakened by a combination of a stronger dollar and rising demand from local companies, even as it assured the market that it has enough reserves to sup-

Is Africa the new face of rising wealth and opulent lifestyles? Pages 12 -13 »

cautious trading due to uncertainty over the CBK’s intervention once the shilling crossed the 93.50 mark. The shilling weakened further yesterday after opening at the rate of 93.20/30 and closing at 93.35/45 with an intraday average of 93.45/55 to the dollar. The CBK’s mean indicative rate yesterday stood at 93.24, the lowest since mid-November 2011. The CBK said it was closely SHILLING , Page4»

“The new code aims to ensu≥e that p≥og≥ammes b≥oadcast between 5 a.m. and 10 p.m. a≥e suitable fo≥ family audiences and that the t≥ansition f≥om family-o≥iented to a mo≥e adult p≥og≥amming afte≥ the wate≥shed pe≥iod is g≥adual” FRANCIS WANGUSI CA DIRECTOR-GENERAL

Mr Wangusi said that once the proposed code comes into force, no radio station will be allowed to broadcast or talk about sex during the watershed hours. “Some of the FM stations are notorious CA, Page 4»

CEOs among most corrupt, survey shows

NBK boss summoned over sale of KMC plots

Containers at port of Mombasa face auction

Mumias cash call to test investors’ appetite

Two out of five Kenyans perceive corporate executives as the most corrupt individuals among non-State actors in yet another evolving face of the vice through which the country loses billions of shillings. Page 6»

The top management of National Bank (NBK) has been summoned to appear before a parliamentary committee to shed light on the sale of three out of 13 parcels of land belonging to the Kenya Meat Commission . Page 7»

Thousands of uncollected containers could be auctioned after a grace period of storage charge waiver handed to importers nearly two months ago expired yesterday.

Mumias Sugar Company is likely to rely on support from institutional investors when it returns to the market since December 2006 with a first-time cash call, analysts said.

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BRIEFING

NEWS INDEPTH

port the local currency if need be. “The exchange rate of the shilling against the US dollar has witnessed an upward pressure in the last one week. This is mainly a reﬂection of a strong dollar in the global market coupled with an elevated but seasonal demand for foreign exchange from the local corporate sector witnessed at this time of the year,” said the CBK. The reassurance was welcomed by currency traders who reported

The Communications Authority of Kenya (CA) has opened a fresh battlefront against electronic media operators with the publication of new rules that empower it to regulate media content. The proposed regulations, contained in a Programming Code for free-to-air radio and television services that the CA released on Monday, give the regulator powers to revoke the licences of radio and television stations that air adult-rated content between 5 a.m. and 10 p.m. The rules are in total disregard to Article 34 of the Constitution that restricts the CA’s role to regulation of airwaves ‘and other forms of signal distribution.’ Francis Wangusi, the CA director-general, said the Programming Code is aimed at preventing the airing of material that is unsuitable for children and minors. “Save for educational programmes, which may require graphic details, no broadcasting station shall air programmes including interactive call-ins or discussion sessions whose content is suitable for adult-only audiences during the watershed period,” the proposed programming code says.

BUSINESS DAILY | Wednesday April 15, 2015

TOP NEWS

Wangusi picks new ﬁght with media ove≥ content ≥ules

A radio presenter. FILE

for this to the extent of media from government control — the breaking all the rules in only limitations being the spreading of the book,” he said. propaganda war, incitement to violence, Regulation of media content is rec- hate speech or advocacy of hatred that ognised as the province of the Media constitutes ethnic incitement to cause Council of Kenya (MCK) as deﬁned in harm or based on ground of discriminathe Constitution and an Act of Parlia- tion. Section 2 of the same Article exment. pressly bars the State from Harun Mwangi, the exercising control over or media council chief execuinterference with any pertive, said the CA was acting son engaged in broadcastThe ≥egulato≥ out of its mandate and in ing or circulation of any should... disregard of global best publication or from penalhave acted to ising any person for their practices. “The regulator should ensu≥e that the opinion, view or the content of any broadcast, publicamost importantly have p≥og≥amming tion or dissemination. acted to ensure that the programming code is consist- code is consistent Dr Mwangi said some ent with the Constitution,” operators were taking adwith the vantage of a lack of a code Dr Mwangi said, adding Constitution of conduct for broadcasters that regulation of content to push the boundaries of is not under the purview HARUN MWANGI ethical programming with of the CA. MEDIA COUNCIL OF KENYA lurid depiction of sex and Article 34 of the Constitution guarantees freedom of the violence, even as he insisted that the

MCK is the body mandated to regulate print and electronic media content. “The global best practice demands that the government or regulators only have an oversight role as far as regulating the professionals and content is concerned. Their emphasis should instead be on regulating hardware and licensing,” he said. The MCK is a statutory body established by the Media Council Act to regulate the media content, the conduct and discipline of print and electronic journalists. Mr Wangusi, however, insisted that the CA had taken into account the objectives of the Act and fundamental values, rights and freedoms enshrined in the Constitution, adding that the code will only apply to broadcasters who are not members of any regulatory body. “This code will not apply where a broadcaster is a member of a body which has proved to the satisfaction of the authority that its members sub-

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scribe and adhere to a programming code enforced by that body by means of its own mechanisms and such programming code and mechanisms have been ﬁled with and accepted by the authority,” he said. Mr Wangusi said the CA intends to make the programming code part of the new broadcasting licensing conditions as outlined in the Kenya Information and Communication (Broadcasting) Regulation, 2009. The proposed regulations have been published on the CA’s website for the public and interested parties to review and submit comments by May 8, 2015. The CA’s foray deep into the content regulation territory is further betrayed by its proposal that the number of hours for children programmes be increased to ﬁve hours from the current three both for radio and television. It is currently not mandatory for broadcasting stations to dedicate any amount of time to children’s content, a situation that has seen most of the stations airing such programmes only on Saturdays. The number of television and radio stations is expected to increase with the migration to the digital broadcasting platform and there has been concern over the quality of content that will be coming out of the channels. The CA also wants children’s programmes to be aired in the morning

and afternoon when children are still active and that broadcasters acting in violation of the code face severe penalties, including revocation of their licences. In a move that takes the CA close to becoming a morality police force, Mr Wangusi is proposing that children’s programmes avoid scenes depicting consumption of liquor or tobacco products ‘unless an educational point is being made and in very exceptional cases if the dramatic context makes it absolutely necessary’. “The new code aims to ensure that programmes broadcast between 5 a.m. and 10 p.m. are suitable for family audiences and that the transition from family-oriented to a more adult programming after the watershed period is gradual,” Mr Wangusi said. The CA is also moving into the unchartered waters of advertising, with a rule that restricts marketing content to not more than seven minutes in a 30-minute programme. Insertion of more than two advertising breaks in a 30-minute programme will also be outlawed. The proposed rules also seek to bar broadcasters from airing advertisements during live screening or broadcasts of national holiday ceremonies, parliamentary proceedings, and the State of the Nation address. mokuttah@ke.nationmedia.com

Cent≥al bank steps in as shilling continues to slide CAPITAL MARKETS OPEN DAY! INVITATION TO PARTICIPATE IN THE CAPITAL MARKETS OPEN DAY SCHEDULED FOR MAY 6TH TO 9TH, 2015 The Authority, in partnership with capital markets industry stakeholders, will hold the Third Annual Capital Markets Open Day Exhibition from 6th to 9th May, 2015 at the Kenyatta International Conference Center, Tsavo Ballroom; May 6th 2015, being the built-up day for exhibitors. This annual event targets participants from the General Public, as well as the Business and Professional Community, within Nairobi and its environs. The objective of the Open Day is to facilitate current and potential investors and issuers to interact with the various capital market intermediaries and stakeholders to receive pertinent information that will assist them to make informed decisions while participating in the capital markets industry. The Open Day is intended to give participants an opportunity to get information on: • • • • • • • • • • • • •

How to buy shares, bonds and other capital markets products Opening and running a Central Depository System (CDS) account How you can start investing with as low as Kshs. 500.00 How to protect your shares What you need to know about Unit Trusts (Collective Investment Schemes) Available products and licensed market institutions Recent developments in the capital markets The role of intermediaries in facilitating long term savings Capital markets as an alternative financing option for long term projects The government’s role in promoting investment and security of investments The 10 year Capital Markets Master Plan Corporate Governance reform for listed companies The rights and obligations of investors

The event will also provide an opportunity for attendees to raise questions, concerns or complaints to the Authority It will also provide intermediaries with the opportunity to show-case their services. Some of the entities expected to exhibit at the event include, the Capital Markets Authority, the Nairobi Securities Exchange, the Central Depository and Settlement Corporation, Fund Managers, Stockbrokers, Custodians, Investment Banks, Investment Advisors and Data Vendors among others. This is a call to all exhibitors. If you are operating within the capital markets sector as a Market Intermediary or a Stakeholder and are interested in participating as an exhibitor during this Open Day, kindly contact the Authority through Halkano Huqa or Faith Mwende on Tel. 020 2264900 or Email: iepa@cma.or.ke to book your space. Space is limited and will be on a ‘first come first served’ basis.

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developments in the foreign exchange market and would continue to use appropriate monetary policy instruments to minimise exchange rate volatility. “The bank has adequate foreign exchange reserves in excess of 4.5 months of imports to cushion the exchange rate against these short-term shocks and volatility,” the statement said. The regulator has intervened in the market several times in recent months to minimise volatility through sale of dollars when the shilling depreciated to cross key psychological levels but has not sought to determine the direction of the exchange rate. Dealers said the corporate demand said to be contributing to a weakening of the shilling is coming mainly from firms paying out dividends to foreign investors. “There has been an increase in investments in Kenya by foreign firms especially by private equity firms, and most companies are paying out dividends at this time raising demand for dollars,” said Com-

Cushion Central bank says it has adequate foreign exchange reserves in excess of 4.5 months of imports mercial Bank of Africa senior dealer Joshua Anene. Kenya imports more goods than she exports, meaning that a weaker shilling will most likely add to the current account deficit that is already under pressure from heavy capital imports against falling inflows. Dollar inflows into Kenya have been affected by low tourism numbers as a result of insecurity, with the outlook on this sector looking bleak following the recent Garissa University College terrorist attack that reinforced some travel advisories issued by countries such as Britain and Australia. Inflows from agriculture have also been lower in the face of declining tea prices in the international market. Of concern as well is the possible recovery of oil prices on the global market. A barrel of oil is currently selling at an average

of $59 up from an average of $50 a barrel in the beginning of last month. Lower oil prices have been shielding Kenya from a harder dollar hit given that oil accounts for nearly a quarter of the country’s import bill. “The weakening shilling combined with a rise in oil prices might have an impact on inflation expectation going forward. The market could possibly see some preemptive actions such as demand for higher interest rates from those expecting to see higher levels of inflation,” said Mr Anene. Other African currencies have fared worse against the dollar compared to the shilling, which is among the top three performing currencies on the continent against the dollar, according to market data from African Alliance. On the global front, the dollar has been rising on expectation that US interest rates will rise in the next two months, and the ensuing capital flight back to the safer US market is expected to hit currencies of countries where there will be a slow – down in dollar supplies to their markets slow down.

Wednesday April 15, 2015 | BUSINESS DAILY

BUSINESS DAILY | Wednesday April 15, 2015

ECONOMY & POLITICS

Business leade≥s join list of Kenya’s most co≥≥upt class

Pet≥ol p≥ices fall as diesel, ke≥osene ≥ise BY NEVILLE OTUKI

GRAFT Survey by Afrobarometer and UoN says

the executives are the main initiators of bribery The findings are expected to add fuel to the raging debate on murky goings-on in corporate boardrooms Two out of five Kenyans perceive corfollowing another report by Ernst porate executives as the most corrupt individuals among non-State actors in and Young (E&Y) last November yet another evolving face of the vice which said that one in every three through which the country loses bilKenyan companies pay bribes to lions of shillings annually. win contracts. Afrobarometer’s report shines the A survey by research firm Afrospotlight on high-level barometer in partnergraft in the public service ship with University and elective offices. of Nairobi’s Institute It is likely that we Three out of every of Development Studwill see a d≥op in four people or 75 per cent ies also ranks police, top national govern- g≥aft cases in futu≥e of respondents view the ment bureaucrats and police as corrupt, with as a ≥esult of the bribes as their favourcounty officials high up ≥ecent move by ite way of extorting cash on the graft list. Based on their dayP≥esident Uhu≥u from law breakers. National government to-day encounters with Kenyatta officials are the second various players, 38 per SAMUEL KIMEU, TRANSPARENT most corrupt with 46 cent of the 2,397 respondents saw business per cent people supportINTERNATIONAL EXECUTIVE executives as the main ing the claim, followed by DIRECTOR initiators of bribery casMPs (45 per cent), MCAs es in Kenya today. (36 per cent) and Kenya The business leaders seen as perRevenue Authority and the office of petrators of bribery include chief exgovernors both at 34 per cent. ecutives, department managers, chief Judges and magistrates are also financial officers, board chairs and seen as corrupt (33 per cent), the executive directors. Office of the President (27 per cent) “Business executives are regarded and Kenya Defence Forces at 22 per as the most corrupt among non-state cent. actors,” says the report which was re“It is likely that we will see a drop leased yesterday. in graft cases in future as a result of The survey, conducted between the recent move by President Uhuru November and December 2014, inKenyatta,” said Transparent Intervolved 862 people or 34 per cent of national executive director Samuel respondents who were based in urban Kimeu at the launch of the report in centres with majority being the workNairobi. ing age of between 26 and 35 years. notuki@ke.nationmedia.com BY NEVILLE OTUKI

Education secretary Jacob Kaimenyi. FILE

Kaimenyi says headteache≥s ≥ule to be enfo≥ced despite p≥otests BY WAINAINA WAMBU

Education secretary Jacob Kaimenyi has said the rules that put school heads under his control will be implemented despite protests by union oﬃcials. Prof Kaimenyi said the new rules were arrived at by a majority after consultations with sector stakeholders including the National Council of Churches of Kenya (NCCK), Elimu Yetu Coalition and the National Parents Association. “They (union oﬃcials) should not purport not to have been consulted. Let them respect the wish of the majority because doing otherwise would be to court disaster in the management of our institutions,” Prof Kaimenyi said yesterday during the opening of the East Africa Education Conference. Under the contentious regulations published to guide the implementation of the Basic Education Regulations Act, 2014, the Education Cabinet secretary has the power to sack and discipline school heads, a

role currently performed by Teachers Service Commission. Teachers aﬃliated to the Kenya Union of Post Primary Education Teachers (Kuppet) have accused Prof Kaimenyi of overstepping his mandate and warned of a strike next term if the ministry fails to revoke the gazetted regulations within a week. The Kenya National Union of Teachers has also written to the Commission on Implementation of the Constitution seeking to have the new rules declared illegal. Prof Kaimenyi maintained the ministry has an assurance from the Attorney-General that the new rules have not violated the Constitution. Having direct control of schools, he added, would curb misappropriation of funds by institution’s heads. “In the past the headteachers and the principals had the authority to incur expenditure. I have only enhanced that responsibility, not taken it away,” he said, adding the rules will make school heads transparent and accountable in the management of their funds.

The Energy Regulatory Commission (ERC) yesterday marginally cut petrol prices but raised that of diesel and kerosene for the second month in a row. In Nairobi, the price of a litre of petrol fell by Sh0.11 to Sh89.35 while diesel cost has gone up by Sh1.28 to Sh77.48 per litre. Kerosene, on which poor households mainly depend for cooking and lighting, has gone up Sh1.46 to Sh57.21 per litre. The ERC said the average cost of imported super petrol dropped 1.46 per cent in March compared to the previous month and that of diesel went up 1.91 per cent while kerosene’s rose by 3.59 per cent – explaining the petrol price drop and increases in that of diesel and kerosene.

Orders There is a 45-day lag between the placing of supply orders by oil marketers and actual delivery of consignments. “The Platts numbers have nearly stabilised and we expect small changes in coming months,” said ERC director of petroleum Linus Gitonga. Platts is a US-based source of oil information used for benchmarking prices. The energy regulator last month raised the prices of petroleum products for the first time in six months, sparking uproar from consumers who accused the officials of being quick to review product prices upwards, denying the country the full benefits of lower global prices. Global crude prices have fallen sharply over the past year from a high of $115 per barrel in June to a low of about $46 per barrel in December, bringing respite to consumers.

DPP seeks longe≥ p≥ison te≥m fo≥ 3 ≥apists BY BRIAN WASUNA

Director of Public Prosecutions Keriako Tobiko. FILE

Director of Public Prosecutions Keriako Tobiko is seeking a longer prison term for three men who were sentenced to 22 years in jail on Monday for gang-raping a primary school girl. Mr Tobiko said yesterday that the sentencing of Owino Oduor, Frederick Owin and Vincent Ouma was lenient, arguing that it did not reﬂect the seriousness of the crime. He added that he was also seeking the arrest three other men suspected to have participated in the gang rape. Oduor, Owin and Ouma were arrested in 2013 and detained at the Tingolo AP Camp. They

were, however, released after being ordered to cut grass as punishment for the crime. They were only arraigned in court after a national public outcry. “While the verdict has to an extent rendered justice to the victim, as the office of the DPP we feel that the sentence imposed is inordinately lenient and fails to adequately reflect the nature and gravity of and the horrific circumstances under which the offences were committed,” Mr Tobiko said. The sexual and physical violence against the girl who was then 16 left her on a wheelchair and with a leaking bladder after developing double obstetric fistula and a spinal injury. She was

treated at Gyno-Care Fistula Centre in Eldoret where she was forced to miss a school year. Mr Tobiko said his office has on numerous occasions issued warrants of arrest and directives for the three individuals who are still at large. “In the circumstances, my office shall seek enhancement of the sentence as we continue to pursue the arrest of the other three culprits,” he added. Mr Tobiko’s directive comes as the three convicts seek to appeal Busia chief magistrate Margaret Wambani’s ruling. Their lawyer Wyclife Okuta asked the court to stop the enforcement of her ruling until he fileds an appeal.

Wednesday April 15, 2015 | BUSINESS DAILY

CORPORATE NEWS NEWS I REVIEWS I ANALYSIS

Pilots ﬁght cou≥t ≥uling on KQ st≥ike

National Bank boss summoned ove≥ sale of KMC plots

BY BRIAN WASUNA

PROBE Three of the 13 plots held by NBK were

sold without the meat processor’s knowledge onciling its records in order to release them to us. We have a debenture that The top management of National Bank they signed showing that 13 proper(NBK) has been summoned to appear ties were charged to secure the Sh160 before a parliamentary committee to million loan,” he said. shed light on the controversial sale of In yesterday’s committee hearing, three out of 13 parcels of land belong- the KMC acting managing commising to the Kenya Meat Commission sioner James Tendwa was hard pressed (KMC) that had been charged to the to explain why the meat processor had failed to secure its titles two years aflender. ter the government The Public Investment settled the loan with Committee (PIC) was yesterday told that three of the the bank. When I went to eight properties that NBK Committee vicehad accounted for had been confi≥m ou≥ titles, chairman Kimani sold to third parties despite Ichung’wa directed I found one lette≥ that the NBK managthe government settling a di≥ecting NBK not ing director Munir loan of Sh160 million on behalf of KMC. to sell the p≥ope≥ty. Ahmed be summoned The management of the appear before the They we≥e to only to bank will also be required team to explain how sell... prime KMC plots in Kito explain the whereaVINCENT AKARAH, ACTING KMC bouts of five titles that KMC tusuru, Riverside Drive SECRETARY charged to it as security for and Mombasa-Kibarathe loan. ni were disposed of to Acting KMC company secretary third parties yet the lender held the Vincent Akarah told the committee original titles. that NBK had only accounted for eight The KMC management told MPs of the 13 titles that were charged for that titles for plot 511 in Mombasa the loan. Kibarani, plot 17/66 in Kitusuru Nai“We have received certified copies robi and Riverside Drive also in Nairobi of eight of the 13 properties that were were missing. charged to NBK. NBK says it’s still recThe plots, it was claimed had been BY EDWIN MUTAI

Kenya Meat Commission acting mananging commissioner James Tendwa at a past event. FILE

grabbed or sold to third parties without KMC’s knowledge. Mr Akarah said a search conducted in 2013 showed that the 13 pieces of land charged to NBK belonged to KMC. “Plot 511 in Mombasa-Kibarani was purportedly auctioned by then Mombasa Municipal Council over a Sh3.3 million rates debt. The plot was allegedly sold to Safeway limited at a cost of Sh12 million. But when the valuation conducted by the Ethics and Anti-Corruption Commission, which has taken the matter to court on our behalf, the value was establihesed to be Sh100 million,” said Mr Akarah. The committee read collusion in the disposal of the one-and-half-acre plot in Mombasa. Mr Akarah said records show that the rates, which had been outstanding since 1997, had been cleared in 2004 and that KMC had in fact overpaid the rates to the council by over Sh500,000 by 2007 when the plot was allegedly

auctioned. In the case of parcel 17/66 in Kitusuru, Mr Akarah said the land was sold during receivership in 1999. “This is the most prime property that NBK purportedly sold. I have documents that disallowed the sale which we have forwarded to EACC and National Land Commission to investigate,” he told the committee. Mr Akarah said the ministry of Agriculture had instructed the then receiver manager not to dispose of any property of KMC. He claimed the property was sold to Shanash Investment limited, which has since re-developed it. “When I went to NBK to conﬁrm our titles, I found one letter directing NBK not to sell the property. They were to only sell canned beef and not land or vehicles. They (NBK) may have used that exit to sell the property. We wrote to EACC to investigate whether the sale was genuine. This was among the titles charged to the bank,” he said. emutai@ke.nationmedia.com

US online taxi ﬁ≥m now cou≥ts Kenyan companies fo≥ g≥owth BY ANNIE NJANJA

Uber, the American online taxi hailing firm, is targeting Kenyan companies to boost uptake of its services three months after officially launching operations in Nairobi. The new service dubbed Uber 4 Business (U4B) is designed to help companies organise transportation of their employees conveniently and manage taxi expenses. The Uber service is set to rival corporate cab services offered locally by taxi companies like Pewin, Princess, Wote

and Jatco. “The new product allows a centralised billing for all employees and provides an explanation on locations covered and expense incurred by speciﬁc employees,” read a statement sent by Samantha Allenberger, Uber Africa Communications Associate. To use the service, companies are required to create an Uber corporate account and add employee names, a function that will help the management to track details of the employees using U4B taxi. A company will be billed through credit cards, direct electronic billing or through other

cashless payment options. Employees of companies will only access the U4B service according to the policy controls set by the company. The pre-set company policy speciﬁes pick up locations, days and hours during which employees can ask for a taxi. Employees will not access taxi services if they disregard the pre-set policy. Ms Allenberger said that date, time, and location settings let businesses decide when and where employees can ride, helping them deal with excessive travel. “Uber automatically applies their

A man uses an Uber 4 Business app to hail a taxi. FILE (companies) custom ride policy to every trip for guaranteed compliance, withdrawing tedious taxi approval processes, employee refund and unaccounted travel expenses.” The launch of the product follows the slow take-oﬀ of Uber’s initial service, which has come under stiﬀ competi-

Kenya Airways pilots have opposed a High Court decision stopping them from going on strike, arguing that the matter is among issues being negotiated before a conciliator. The pilots have through the Kenya Airlines Pilots Association (Kalpa) said that the airline obtained the orders irregularly as it did not inform the court that the issue was before a mediator. Kalpa adds that the orders are against the spirit of trade unionism, which is guaranteed by the Constitution. Kenya Airways (KQ) moved to court last month after the pilots through Kalpa declined to work during their oﬀ-duty and leave days, stating they would only work in line with the terms of their contracts. Justice Hellen Wasilwa’s order consequently stopped Kalpa from calling for any strike, go-slow or withdrawal of goodwill. “The motion is brought with unclean hands after deliberately failing to disclose material facts to the court to with the existence of ongoing conciliation. The orders sought proactively and in speculative fashion seeks to restrict trade unionism,” Kalpa said. Justice Wasilwa yesterday extended the orders stopping any industrial action against KQ after the airline said it needed time to respond to Kalpa’s argument. The judge said she will give further directions on the matter on April 27 after KQ has ﬁled its response to Kalpa’s argument.

tion due to relatively low taxi charges by local operators. For instance, during its Nairobi launch, the San-Francisco based company set Sh500 as the minimum charge for the shortest distance covered. Most local taxi cabs charge slightly more than half the amount to cover similar distances. The sluggish uptake of the service in Kenya is in contrast to the fast growth of the app in other parts of the world including Europe and the US. A survey released early April by Certify, an American expense software management company, revealed Uber’s growing popularity among business travellers. “Hundreds of new companies are joining the Uber for Business platform every week, and it is paying oﬀ,” said the survey report.

BUSINESS DAILY | Wednesday April 15, 2015

CORPORATE NEWS COUNTY BUSINESS

Chinese ai≥line’s ent≥y deals blow to Kenya Ai≥ways REVENUES National carrier to lose out on

passenger referrals with China Southern entry BY SIMON CIURI

Kenya Airways has emerged as a big loser with the launch of China Southern Airlines’ direct flights from Nairobi to Guangzhou. The national carrier had a code sharing agreement with China Southern Airlines, which allowed it to fly passengers to Guangzhou after which it would transfer them to the Chinese airline for domestic connections. The launch of China Southern Airlines flights to Nairobi, however,

means that the national carrier will lose out on passenger referrals that it was getting as travellers who wish to connect to other Chinese cities from Guangzhou will now prefer to use the Asian carrier. “We have for long wanted to ﬂy our planes to the Kenyan market but regulatory issues have been a problem and we expect the new move will boost our growth,” said Li Dongliang, the Chinese airline’s Vice-President in charge of the Sales Division. The China-based airline would previously make book-

From left: China Southern Airlines deputy managing director Quan Si Bin, senior vicepresident sales division Li Dongliang and general manager Li Xiang unveil plans for the new route from Guangzhou to Nairobi at a media brieﬁng in Nairobi . SALATON. NJAU ings for its local travellers through its Nairobi representatives and transfer the passengers to Kenya Airways and share the revenue generated. Yesterday, the airline said it decided to enter the Kenyan market to tap the increased demand for its services mainly from the business communities from the two countries who are frequent travellers. “The Nairobi to Guangzhou route is a prime market given its business atmosphere and the number of business people and students crossing over the

two countries,” said Li Dongliang. He spoke during the pre-launch media briefing in Nairobi yesterday. The airline will start flying from Nairobi to Guangzhou from early August three times a week. It plans to introduce daily flights from Nairobi depending on the level of demand. Apart from the code share agreement Kenya Airways has been enjoying, the new entrant poses a commercial threat to the national carrier which introduced direct flights to Guangzhou in 2013. “We are not in direct compe-

tition with Kenya Airways but we will be holding a discussion (with Kenya Airways),” said Li Xiang, the China Southern Airlines General Manager for the East Africa market. China Southern Airlines will operate Monday, Wednesday and Friday flights between the two cities where it will be using an Airbus A330-200 aircraft that has the capacity to carry 300 passengers. Last year, Kenya signed a memorandum of understanding with China on cooperation to boost tourism between the two countries. The Chinese airline also said that apart from the direct flights between Nairobi and Guangzhou it will also be connecting local travellers to domestic flights it operates to the neighbouring cities within China. Kenya Airways has been expanding to the Far East and Middle East driven by demand by business grovellers. In January this year, KQ opened a sales and ticketing outlet in Tea Room area in the central Business District targeting thousands of small traders who buy their goods in the Middle East and Asia. sciuri@ke.nationmedia.com

Nakumatt signs lease fo≥ new sto≥e in Eastleigh BY ANNIE NJANJA

Nakumatt supermarkets has signed a lease agreement with owners of Eastleigh’s upcoming ‘Comesa’ shopping mall, giving the retailer an entry in one of Nairobi’s most vibrant business hubs. The store, which is set to open before the end of next year, will take up two ﬂoors occupying 40,000 square feet of the Sh3 billion shopping complex. Managing director of Nakumatt Holdings Atul Shah said a presence in Eastleigh would boost the retail chain’s rate of growth. “At our current growth pace and based on the regional market demand, we anticipate opening a minimum of 14 more branches by the end of 2016,” said Mr Shah. Nakumatt’s current branch

network stands at 52. The number is set to increase after opening of more stores in Garden City Mall, Diamond Plaza 2, Kericho, Emali and Mombasa. “We are looking ahead for wholesome growth and we will not be derailed by new entrants into the local market, as we are ﬁrmly focused on revolutionalising the customer experience and growing our network,” said Mr Shah. Construction of Comesa Mall, which is located on General Waruinge Street and opposite Pumwani Hospital, began in December last year and is expected to take two years. Darasa Investment Limited, the developers of the shopping complex, said the many traders streaming into Eastleigh from countries like Rwanda, Tanzania, Burundi and Congo inspired the ‘Comesa’ name.

MUSHROOM FARM TO LET Properties: • Capacity to produce 250kg per day • Straw storage facility that can hold up to 30,000 bales • Compost preparation area-both pre wet and long stack with an effluent circulation tank of 20000ltrs capacity. • 2 NOS. Pasteurization chambers complete with 12-way temperature monitoring system and fresh air supply through centrifugal system. • Spawning room • 8 Nos growing rooms each with a capacity to hold 1200 bags of 15kgs each. Serviced with water, steam and humidifiers. • Grading and packing room, • Cold room, 3 phase power system, borehole and 3 fresh water tanks with capacity of 40,000ltrs • A choice of either wood or fuel steam boiler.

Contact. Manager 020 2044752 or 0722 809 908 Email inseconrb@gmail.com.

Maize ﬂour packets at a Nairobi supermarket. Sharp price increases spell tough times for consumers as they come at a time when the cost of other household goods has gone up. DIANA NGILA

Jogoo maize ﬂou≥ p≥ice ≥ises to Sh107 BY GERALD ANDAE

The price of a two kilogramme packet of Jogoo maize ﬂour yesterday increased by Sh10 to Sh107, as millers continued to report shortage of supply of the grain. A 2kg packet of Soko ﬂour was selling at Sh104 at Tuskys Supermarkets and Sh102 at Uchumi from Sh86 in January (on Tuesday we erroneously reported that its price had increased to Sh120), while Maycorn was retailing at Sh120 in Eastmatt supermarket and Sh115 at Tuskys. The sharp price increases spell tough times for consumers as they come at a time when the cost of other household goods such as milk and horticultural produce has also

Maize Flour Prices (2kgs- Shs) January

April

Jogoo

107

Soko

104

Pembe

105

Maycorn

110

120

SOURCE BD RESEARCH

gone up, piling pressure on the cost of living. Millers insist that there is scarcity of maize in the market after some neighbouring countries restricted grain exports, forcing factories to buy the grain at the prevailing market price of Sh3,000 for a 90-kilogramme bag. Millers were buying a 90kg bag at Sh2,300 as late as last month, with the National Cereals and Produce Board pay-

ing the same amount for the same quantity. The government said it planned to hold talks with the millers over the new prices, saying that they were unjustiﬁed. “It is too soon for millers to increase the price of maize, at least not for now when we are just four months into the year. ‘‘We are planning to have a meeting with them to discuss the matter,” said the Principal Secretary for agriculture Sicily Kariuki. Ms Kariuki reckons that the country is still awash with maize from the last season’s crop that has kept the cost of the staple low in the market. The Cereal Millers Association says speculation has led to decline of maize supplies in the

market that has seen the cost of maize go up by 27 percent. As a result, the millers argue that high cost of maize has pushed up the ex-factory price of flour from between Sh84 and Sh87 in February to beyond Sh100 this month, representing a 13 percent increase. Kenya is a maize-deficit country and relies on stocks from other regional countries to supplement the available produce in order to satisfy its needs. Maize prices have a big effect on inflation as it is the staple food in the country and accounts for a significant share of poor households’ budget. Data from KNBS showed that inflation rose to 6.31 per cent in March from 5.61 per cent the previous month.

Wednesday April 15, 2015 | BUSINESS DAILY

IDEAS & DEBATE OPINIONS I REVIEWS I ANALYSIS

To achieve indust≥ialisation goals, Kenya needs to p≥io≥itise development of coal ENERGY The State should come up with a coal development and commercialisation master plan backed by proper funding

he other day I was talking to a professional colleague from Tanzania, and the subject was about coal development in the region. We felt that in this region coal never commands the same excitement and prioritisation as oil and gas. This is despite huge potential for coal as an indigenous energy resource. The latest estimates put Tanzania coal deposits at 5 billion tonnes, mostly in the southern parts of the country. The initial commercialisation plans for Tanzania coal are for power generation. There are also deposits of iron ore which may require coal for smelting to produce steel. The proposed Dangote Cement in Tanzania is also understood to be targeting coal for cement manufacture. In respect of other fossil energy resources, Tanzania has confirmed about 53 trillion cubic feet of recoverable natural gas reserves. While most of the gas will be exported as Liquefied Natural Gas (LNG), some of it will be used locally for power generation, industrial heating, and petrochemical value addition. The combination of natural gas and coal resources gives Tanzania a strong base for low cost locally produced energy, very important for the country’s economic development. In Kenya plans are underway to develop some one billion barrels of oil reserves (in place) in Turkana county. There is every likelihood that the oil shall be exported for cash, as there are no immediate indications of local refining. Further, Kenya is yet to

Hillary Clinton US presidential aspirant

Deborah Orr (Guardian) Hillary Clinton will be the youngest woman ever to be president of the United States if she makes it to the Oval Office. She’ll be less tainted by the scandals and mistakes of previous administrations than any woman ever has been. She’ll be the first American president who has experienced childbirth, or even admitted to wearing a bra. She’ll be the first spouse to have followed her partner into office. She’ll be the first president to have prompted the need for an answer to the question: who is that guy then, if he isn’t the first lady? And that’s a question that needs answering. A coal-burning power station located on the outskirts of Beijing. The mineral is seen as a low cost energy source that can power Kenya’s industrial engine. However, there has been little empasis on its development . FILE

BY GEORGE WACHIRA

Other Voices

requires to be sorted out. The ministeconfirm any commercial discoveries rial responsibility for coal development of natural gas. The only fossil energy that is immediately ready for commeris ambiguous. We currently have two cial exploitation is the coal in Kitui. It is draft bills (Mining Bill and Energy Bill) also understood that the government each listing coal as a component of its is planning to embark on a coal explojurisdiction. Coal is definitely a minration programme in a number of coal eral to be mined, and it is also a fossil prospective counties at the Coast. fuel that provides energy. Whereas Kenya has correctly foI see coal more as a mineral under cused on coal as inputs for power the mining jurisdiction because of its generation, we now need to see coal cross-cutting similarities with other minerals. Exploration, mining, licensas a low cost energy source to drive ing and regulation for coal follow the industrialisation. Until we confirm same framework detailed in the Minsufficient amounts of natural gas, ing Bill. The ministries of energy and coal is currently the only local fossil energy potentially available for heavy industrialisation are both key users industries. of coal and as such they should have Industries use electric energy for shared interest on coal with the mining ministry. driving machinery and equipment, Whether for power or industrial but require many calories of heating use, coal is usually unfairly criticised energy. Industries like cement, soda by environmentalists for its environash, food industries, tea processmental, health and cliing among others have mate change impacts. for many years relied Yes we need to make In respect of pollution on expensive imported heavy fuel oil for heating. there are mitigating coal explo≥ation Lately a number of these clean coal technoloand development a industries have turned to gies which can be denational p≥io≥ity to cheaper imported coal signed into coal burnp≥omote low cost ing projects to reduce and local biomass (firemanufactu≥ing wood and agricultural pollutants (sulfur/ waste). nitrogen oxides, and A national indusparticulate matters) to globally acceptable trial energy plan should safe minimums. therefore focus on both These are the pollution mitigating the electric energy and heating enfeatures and standards that the Nationergy. The 5,000 mega watts power al Environement Management Authorgeneration plan mostly addresses ity (NEMA) and also global financiers electric energy, leaving heating energy inadequately provided for. Local check before they grant permission for coal should therefore be equitably alcoal project development and fundlocated between power generation and ing. For environmental activists, they heavy industries. need to check and interrogate these But I see an urgent problem that technologies to allow them to objec-

tively comment on coal projects from an informed view point. In respect of climate change, carbon emissions are a part of a wider and often controversial global debate. Compared with natural gas, and liquid oil, coal is higher on the carbon footprint scale. In the absence of binding international agreements, global warming mitigation remains a shared international responsibility. Each country needs to demonstrate that it is playing its part in reducing carbon emissions. The choice of a country’s energy mix should therefore correctly reflect this shared responsibility. Specifically for Kenya we can demonstrate that directionally our future energy mix will on average progressively produce lower carbon emissions. This is because of increased use of lower carbon renewable energy (geothermal, wind, solar, and imported hydro from Ethiopia). These renewable energies plus the ongoing energy efficiency programmes should easily offset any increase in emissions from coal usage. Further, planting more trees will increase absorption of incremental carbon dioxide from coal. Yes we need to make coal exploration and development a national priority to promote low cost manufacturing. For this we need to prepare a comprehensive coal development and commercialisation master plan. Allocation of sufficient budgetary funding is also important. This way we shall develop a flourishing coal sector contributing to the national GDP. Mr Wachira is the director, Petroleum Focus Consultants Wachira@petroleumfocus.com

Hassan Rouhani Iranian President

Peter Beinart (The Atlantic) Iran’s policy in Iraq isn’t revolutionary either. In 2003, the country that brought revolution to Iraq was the United States. The Bush administration toppled Saddam Hussein and oversaw elections that brought Iraq’s Shiite majority to power. Since then, the US has tried to keep the Shiites in power (since that’s what democracy requires) without letting them to alienate Iraq’s Sunnis and Kurds that Iraq falls apart.

Jacob Zuma South African President

Editorial (Citizen) The scourge of xenophobia is back again in the continent’s southernmost country, South Africa, the land Nelson Mandela, one of the world’s icons of freedom and justice and equality fought for. Yes, mobs of local youths have lately been attacking immigrants, mainly Africans. On Sunday, death occurred to one of the several Ethiopian brothers who suffered burns when their shops were razed by thugs in antiforeigners violence in Durban. Thousands are now living in a temporary camp.

BUSINESS DAILY | Wednesday April 15, 2015

EDITORIAL & OPINION

Published by the Nation Media Group, Kimathi Street, Nairobi

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End blame game and st≥eamline maize secto≥

gricultureprincipalsecretary Sicily Kariuki says there is no supply shortage to warrant the maize flour price hikes to beyond Sh100. She says there is no justification for the prices to go up at this moment. The millers on the other hand are blaming maize cartels for holding maize and pushing the prices up as the market dynamics of demand and supply come into play. As these two argue on polemics, it is the consumer who has been left holding the short end of the stick. While we agree with the PS that there is no justification for the rise of maize flour prices, we wonder why the ministry is feigning surprise and ignorance about the increase. At the very least, we would have expected the National Cereals and Produce Board to release stocks in the Strategic National Reserve to offset any shortfall experienced by millers, if any, so that they don’t hang on the cartels’ excuse. At the moment, NCPB has close to four million bags, which includes two million bags from the previous crop. Ordinarily, they would have sold this stock and bought from the farmers who are queuing to sell ahead of the planting season. Secondly, the ministry has failed in its monitoring role. It has inspectors all over the country and they must have been monitoring the food prices on a daily basis. That they

have not raised the alarm over the same is a failure on their part. Having said that, investigations should be commenced by the Competition Authority to check whether the three top millers have engaged in price fixing. With the significant drop in energy prices, we are left wondering why the millers have failed to pass on the benefits to consumers. Previously, the millers were blaming the retailers for failing to pass on the benefits to the consumers even when energy and maize prices were falling. When millers collude in order to protect their interests, then the entire market gets distorted and no country should allow that to happen. It is such tendencies that will force the government to enter the maize milling market to stabilise the prices. They should be aware that the NCPB plans to establish two milling plants in Trans Nzoia and Nairobi. That should worry them. While the consumer is not interested in the blame game, all parties should sit and thrash out the contentious issues. If the cartels are the ones to blame, then we should find a solution to that. If the millers are colluding, then the Competition Authority should charge them. But overall, the ministry must streamline the maize sector and not feign ignorance.

Revisit Mumias debacle

ugar miller Mumias’ just announced decision to shut down its water bottling plant for non-performance only three years into its operation, though ﬁnancially sound, is one that begs to be looked at more deeply with regards to the principles of corporate governance. At the centre of this corporate tragedy is the failure of the bottling plant to make any money despite the company having sank a whopping Sh200 million to set it up. Contrary to the common understanding – even among directors and executives -- corporate governance is a delicate, often a slippery that requires solid technical skills, good sense of judgment, sizeable amount of caution, high levels of sensitivity and resoluteness of action. A good mix of these should make it hard for

the board of directors and executives to dream up pet projects into which millions of company funds are sunk only to be wound up a couple of years later a la Mumias water wing. Yet the corporate landscape is replete with these projects that were hurriedly dreamed up and executed at great costs to shareholders and employees only to be abandoned at a very heavy price to employees. It has been argued that courage to venture into unchartered waters is what sets businesspeople and companies apart. But that does beg the question as to who should take responsibility for bad and unfruitful decisions that cause both ﬁnancial and livelihood pain as has happened in Mumias. Should we just sit and rub our hands that it did not work out and move on? The jury is still out.

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“All this time I’ve been working full time and getting paid as if I work part time... Now I want to work part time and be paid as if I work full time...”

Retu≥n Lo≥d Delame≥e’s statue to Nai≥obi

JOHN KAMAU HISTORY

outh Africans have managed to topple the statue of Cecil Rhodes from University of Cape Town and they are moving to vandalise other statues connected to the imperialist past. In the rage, the statue of Mahatma Gandhi was also vandalised. We don’t know where they will stop. They are wrong – and we were wrong in 1964 to remove the statue of Lord Delamere from the junction of Kimathi Street and Kenyatta Avenue, the King George V statue and the bronze portrait plaque on the King George VI memorial near Intercontinental Hotel. Recently, at the Jevanjee Gardens in Nairobi, the statue of Queen Victoria was destroyed by some vandals – denying future Nairobi generations to have a glimpse Empty plinths will never tell the story of a nation, however painful. Otherwise, how do we tell the authentic and balanced history of our colonial past while we have distorted the landscape where they sat? While the fall of any regime is usually followed by the removal of its images and symbols, removal of monuments, memorials and statues is usually the ﬁrst sign of

intolerance. There is no monument that cannot be contested in space and time. Germany removed the Nazi monument after the Second World War only for it to be rebuilt in 1988 to provide a link between the past and present nonNazi generation. It is now a reminder of the fascist past and oﬀers a symbolic dialogue to citizens. In 1964, Kenya erected the statue of Jomo Kenyatta which was unveiled outside Parliament. Some 10 years later, another statue was unveiled outside Kenyatta International Conference Centre. The two captures the history of Kenya in the formative years and any maverick who would target them in years to come would have done a disservice to history. The same goes to the Tom Mboya and Dedan Kimathi monuments in the central business district. Perhaps we have been lucky, so far. President Kibaki did well to have resisted pressure to erase the Nyayo symbols and monuments that remind Kenyans about the dark days of Kanu. Virtually every major town has these symbols – their architectural and aesthetic wants notwithstanding. There was an attempt to deface the Nyayo monument at the Central Park and police were called in and repairs later made. That is how nations should protect their past. The world watched as Saddam Hussein’s statues in Firdaus Square in downtown Baghdad were brought down by US Marines which was the ﬁrst attack on symbolic images on a nation’s political

VIEWS FROM ABROAD

and cultural heritage. Is it any wonder that there is an ongoing destruction cultural monuments in Egypt, Iraq, Libya and Syria by Islamic State? They have so far destroyed the statue of Abu Ja’afar Al-Mansour, the founder of Baghdad and the tomb of 12th-century philosopher, Ali Ibn Al-Athir. When a nation refuses to acknowledge its past and appreciate the aesthetic and historical value of statues and memorials, then it loses an opportunity to dialogue with the past. No nation should settle scores with monuments and South Africans need to learn this. Having said that, Nairobi should return the statue of Lord Delamere from the shores of Lake Elementeita to its original plinth. We cannot use sites and monuments to settle old scores. We should start seeing the monuments as part of our heritage, as historical artefacts and as symbols of the past. Or do we think that the French are crazy to have maintained Arc de Triomphe despite the fact that it was associated with Napoleon Bonaparte – a man who almost destroyed France. For public historians, it was gratifying that President Robert Mugabe said they will keep the grave of Cecil Rhodes in Bulawayo although some ZANU-PF members have been calling for his exhumation and repatriation to Britain. Kidero, should help Nairobi restore its symbols. Kamau is the Associate Editor, Business Daily: jkamau@ke.nationmedia.com

Opinions f≥om a≥ound the wo≥ld

Putin opens way for weapons

Tablets are not toilets

Protest reﬂects disconnect

Russian President Vladimir Putin cleared the way for delivery of sophisticated air defence systems to Iran with a decree that US warned could disrupt the LOS ANGELES TIMES emerging deal to LOS ANGELES prevent Tehran from developing nuclear weapons. Kremlin cited the April 2 agreement between Iran and six world powers that is expected to prevent Tehran from developing weapons as grounds for proceeding with delivery of the S-300 missile systems, which could give Russia a jump on others in resuming trade with the long-isolated Islamic Republic.

In South Africa, computer tablets are being used in teaching and learning. The technology works but, it’s working in a constraining space. In one school, some MAIL & GUARDIAN JOHANNESBURG pupils are crammed into mud rondavels and go to pit toilets. They have no electricity. Textbooks are kept in a corrugated iron kitchen to save precious classroom space for pupils. The children enjoy using their tablets and learn a lot from doing so. But such technology is a poor and, at best, temporary distraction from an environment that is not conducive to learning.

Zimbabweans, as what has since became the norm, have suffered and continue to wallow in joblessness, hunger, abject poverty garnished by an unrelenting THE STANDARD spirit of hopeless HARARE sadness. They are known for suffering quietly, adjusting and moving on oblivious of the political and economic crisis arresting them. Recent developments indicate a high level of civil unrest in the nation, which any person concerned with the peace and harmony should interrogate further and chat an urgent way forward.

Wednesday April 15, 2015 | BUSINESS DAILY

EDITORIAL & OPINION

Why ≥emittances to Somalia should not be blocked KEITH ELLISON FINANCE

y district is home to one of the largest Somali communities in the world. Somali-Americans are proud of Somalia’s progress in the last few years. The nation successfully fought oppressive colonization and ended the ensuing decades of dictatorship and civil war. While millions still live in poverty, Somalia is establishing a legitimate government recognised by the international community. The fragile progress in Somalia and other parts of East Africa is sustained in part by money sent from friends and family overseas. Every

year Somali-Americans send about $215 million to Somalia, more than the $200 million annual aid package from the American government. Remittances from around the world account for up to 40 per cent of Somalia’s gross domestic product. This money keeps Somalis from going hungry, sends their children to school and provides seed capital for entrepreneurs to start businesses. And it limits the appeal of insurgent organisations like the Shabab; a pipeline from family members abroad makes it easier to reject the money that terrorist groups use to attract recruits. Thanks in part to this growing stability, Somalia and its interna-

Letters

tional partners have made important gains in fighting terrorism in the region. The United States has made significant investments in the African Union Mission in Somalia and other military efforts to root out terrorist activity. Unfortunately, the remittances lifeline from the United States may soon be cut off completely. In February, the bank that handled up to 80 per cent of remittances to Somalia closed the accounts of remittance businesses that provide moneytransfer services from the United States. In May, one of the few remaining banks will also close accounts. And Kenya suspended the licences of 13

Somali remittance ﬁrms in response to the brutal murder of 148 students at Garissa University College. Why are the banks shuttering these services? For one thing, having a money-services business as a client increases the diﬃculty of regulatory requirements, as banks must meet high standards under anti-moneylaundering rules. Safe and transparent channels of humanitarian remittances must be able to reach desperately poor and struggling nations while ensuring funds are not reaching terrorists. The stability and safety of the Horn of Africa is at stake. The writer is a Democratic representative from Minnesota

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

Implement reforms that will tackle graft, insecurity

here are certain reforms that the government must carry out to eradicate corruption and enhance security. It is of critical importance that all properties in Kenya are mapped. Whenever Kenya carries out its census, it forgets to create security linkages. The data collected should be shared with both the police and Kenya Revenue Authority (KRA). What the government must do is carry out another security-related census to ﬁnd out where everybody lives. The important features of this exercise should include the identity card details of all tenants, their PIN details as registered with KRA, rent paid, current mortgage status, whether owner occupied, bank details,where they work and so on. For example, if someone living in Eastleigh has false Kenyan papers indicating that his upcountry address is El Wak, then State agencies in L Wak would be able to carry out a physical check. If the tenants are lying , the Anti Terrorism Police Unit (ATPU) would take the person in for questioning, check the mobile phone calls log , check his emails and other security procedures.

The advantage of doing this is that the government would at last be in a position to double check what civil servants and other public officers have declared as assets under the Public Officer and Ethics Act. It would be possible to cross check tax returns with wealth declared. This would go a long way in pushing tax compliance from the current 30 per cent to best practice 90 per cent or triple the Sh1 trillion KRA collects. It would be possible to ban arrest of drivers for minor traffic offenses (and deter bribery on our roads) as traffic tickets would be dropped at people’s houses. The import of this is that the police would be able to arrest tax dodgers at short notice.The police would arrest traffic offenders at their homes. Terrorists would have nowhere to hide. Hotel owners should also be very closely monitored by the policek. All daily entries must be closely interrogated and matched with other details like entry points at our borders or airports. Terrorists would avoid working from hotels. All landlords would have to notify the police and KRA of any new tenants on a monthly basis. KARIUKI MUIRI, Karatina

defenceless students. Cowering outside behind the stone wall gave the terrorists time to murder people. The government should also come up with a minimum response time to situations like this and a maximum to resolve the situation. BRIAN GAKUO via email ******** he government’s move to rescind a presidential directive for recruits to report to Kiganjo Police Training College is laudable. At last sense prevailed, the ensuing confusion notwithstanding. The new recruitment drive slated for April 20th should be free, fair and devoid of corruption. The government should broaden its selection criteria. Brain and not brawn should be the by-word; at the top of list. Height-or lack of it and missing teeth criteria of yesteryears has no place in the 21 ﬁst century policing,considering the enemy has become sophisticated. We should go for the best man and woman who are a match for the new smart, tech-savvy alshabab recruits. DENNIS MUTUA Nairobi

The Ethics and Anti-Corruption Commission ofﬁces in Nairobi. FILE ******** o win the war against terror, we need people in security who can think dynamically and respond to multiple scenarios without resorting to ﬁxed strategies. The Garrisa University College terrorist attack should have prompted the use of an armoured personnel carrier right next to the buildings to provide cover for soldiers who could then assault the terrorists from multiple sides. That would have forced them to confront the soldiers and waste their bullets on them rather than

Nairobi River’s pollution poses threat to city residents

few years back the government spent a lot of money and resources trying to clean up the Nairobi River, but its eﬀorts have not borne fruit. The river is polluted with industrial and domestic waste. This is evidenced by the dirt and waste

that has been draining into the river along the Ruai section. The pollution of the river posses a major risk to Nairobi residents because chances of the polluted water contaminating piped water from the Nairobi City Water and Sewerage Company are high.

Further more residents of Nairobi and its environs face the risk of contracting life threatening diseases because some of the vegetables they unknowingly consume are grown on the river’s banks and are known to contain very high levels of metals from industrial waste

channelled into the river. The government should swiftly do something about this because if nothing is done, Nairobi residents are bound to suﬀer from life threatening diseases.

JUDY MUTHEU via email

Hilla≥y Clinton may st≥uggle to get campaign message hea≥d JAMES OLIPHANT POLITICS

illary Clinton entered the 2016 race for the White House on Sunday and the good news for her is that there are few serious contenders to challenge her for the Democratic nomination. The bad news is that there are few serious contenders to challenge her for the Democratic nomination. Because of her global profile and the lack of other prominent Democrats in the field, Clinton enters the race in a position that is perhaps unmatched in modern US presidential politics. While her grip on her party’s nomination seems commanding, it also makes her a singular target for a bevy of Republican candidates who now share a common enemy. One central challenge for Clinton’s nascent presidential campaign therefore will lie in sustaining momentum and generating positive buzz while under constant siege from Republican candidates, their more unruly political action committees, progressives who feel she is not liberal enough, and the media. Republican contenders Jeb Bush, the former Florida governor, and Senator Rand Paul of Kentucky wasted no time on Sunday criticising Clinton. Following the video announcement of her candidacy, Bush tweeted: “We must do better than Hillary.” On the left, Bill de Blasio, the progressive mayor of New York, was noncommittal on endorsing her candidacy, saying on NBC’s Meet the Press that he wants to hear Clinton’s vision for the country. The risk is that Clinton’s campaign will be so busy responding to attacks on every front that it could have difficulty spawning positive coverage. Clinton cast herself on Sunday as a champion of everyday Americans still struggling to recover from the 2008 recession, although she did not offer any specific policy prescriptions. Tad Devine, who advised Kerry’s 2004 bid as well as Al Gore in 2000, said there were opportunities for Clinton to make an impact and generate buzz in areas such as climate change and campaign-finance reform, as well as in the economic arena. Ari Fleischer, a former White House press secretary under George W. Bush, echoed Devine, saying that Clinton needs to focus less on her qualifications and more on new initiatives. Bush might provide the best comparison to Clinton’s position. He built a juggernaut in 1999 that quickly levelled almost the entire Republican field, leaving more time for big-ticket policy events. Fleischer said the campaign took advantage: A speech in Iowa unveiling his taxcut plan became front-page news, as did his proposal to reform Social Security. There is evidence that Clinton’s standing with voters may already be suffering from Republican attacks and media scrutiny. In midJanuary of this year, a Reuters/Ipsos tracking poll had Clinton as the first choice of 50 per cent of Democrats. As of last week, that number had dropped to 38 per cent.

BUSINESS DAILY | Wednesday April 15, 2015

NEWS INDEPTH

Is Af≥ica the new face of ≥ising wealth and opulent lifestyles? ECONOMY Newly-minted dollar millionaires in the second most inequitable region in the world not shy to spend lavishly BY JOHN NJIRAINI

Not many people in Africa, the majority of whom can hardly aﬀord more than one meal a day, know of the existence of the Maldives, an island in the Indian Ocean. Yet, the island nation, a popular holiday destination for the rich and famous, is the hotspot for African holidaymakers taking a breather away from home Evidence that opulence has found a new home in Africa can be seen across the continent. According to New World Wealth, a consultancy based in the UK and South Africa, there are about 165,000 very wealthy individuals in Africa with a combined net wealth holdings of more than $660 billion. This equates to roughly 28 per cent of total individual wealth held on the continent. From 2000 to 2013, Africa’s very wealthy individuals increased by more than 150 per cent compared to the worldwide growth rate of 73 per cent. In 2013, South Africa

kets. In the recent past, sports car maker Porsche, French luxury goods conglomerates LVMH and Louis Vuitton, Italian fashion and leather goods brand Gucci and Danish jewtopped the list with 48,800 dollar million- elry brand Pandora, among others, have set aires, followed by Egypt with 23,000, Nigeria up shop in several African countries. with 15,900 and Kenya with 9,000. For these companies, Africa falls under The significant rise in the number of dollar the category of dynamic markets that are millionaires has not been among offering exciting opportunities the usual African economic giwith higher returns on investants alone. ments than mature markets in Surprisingly, Ethiopia, a Europe and North America. The≥e is a country that for long has been With a billion-strong young significant the face of Africa’s afflictions population and an economy inc≥ease in owing to the devastating famexpected to double from $2 triline of 1984, is creating more milthe numbe≥ of lion to $4 trillion before 2025, lionaires at a faster pace than millionai≥es and the continent has emerged as other African countries. Ranked the next frontier for growth and among the top 10 fastest growing most a≥e looking opportunity. “Africa is no longer economies in the world, Ethio- fo≥ a≥eas to invest that continent the world viewed pia more than doubled its dollar with pity. Today Africa is genermillionaires from 1,300 in 2007 MICHAEL MUSAU, THE CEO OF ating wealth and the world now AFRICA CAPITAL, to 2,700 in 2014. sees opportunities,” notes Lyal As the number of dollar milWhite, the director of the Centre lionaires in Africa increases, for Dynamic Markets at the Gorglobal companies in the luxury and fashion don Institute of Business Science at South industry are entering the new consumer mar- Africa’s University of Pretoria.

Wednesday April 15, 2015 | BUSINESS DAILY

NEWS INDEPTH

Nigerian billionaire businessman and founder First City Monument Bank, Otunba Michael Olasubomi Balogun, arrives for a social event in Lagos last year. Africa’s super rich are amassing massive wealth from lucrative sectors like telecoms, financial services and commodities, among others. FILE This observation is supported by Michael Musau, the Chief Executive of Emerging Africa Capital, a wealth management firm based in Nairobi. “Poverty is still deeply rooted in Africa but the continent is changing,” he says. Africa’s millionaires are amassing massive wealth from lucrative sectors like telecoms, financial services, retail, manufacturing, imports and exports, agriculture and commodities. At the same time, the continent seems to be losing the income equality battle. In fact, the New World Wealth research shows

the gap is widening as the number of millionaires is growing at a faster rate than the middle class. Inequality in Africa is a malady that is widening at alarming levels and continues to paint the “Africa Rising” narrative with shades of black. Africa is the second most inequitable region in the world, hosting six out of the 10 most unequal countries worldwide. “Inequality makes us ask the question, “Is Africa rising or is the world ﬂoundering?’” says Mr White. The growing number of millionaires seeking avenues to invest their wealth is a testament that

SPENDING

Luxury vehicles on the sales lot of Brickell Luxury Motors in Miami, Florida. Global luxury vehicle and fashion industries cannot afford to ignore Africa. AFP a fast-growing elite has high disposable income being spent not only on luxury goods and aﬄuent lifestyles, but also on business investments. “There is a signiﬁcant increase in the number of (millionaires) in Africa and most are looking for areas to invest,” explains Mr Musau, adding that Africa’s millionaires are investing heavily in various sectors through private equities, hedge funds and capital markets. Despite the public displays of wealth, the presence of 58 million undernourished and stunted

African children below the age of five, high levels of child and maternal mortality and limited access to clean water and sanitation, health and education facilities has forced the rich to give back some of their wealth by creating jobs and engaging in philanthropic initiatives. . On the larger scale, Africa’s billionaires have borrowed a cue from some of the world’s richest people like Bill Gates and set up foundations through which they channel millions of dollars in philanthropy. Aliko Dangote, the Nigerian founder of Africa’s biggest industrial conglomerate, Dangote Group, recently announced he would donate $1.2 billion to the Dangote Foundation to scale up support in education, health and youth empowerment. Patrice Motsepe, a South African mining magnate with a net worth of about $2.5 billion, has committed to give at least half of the funds generated from his family’s assets to improve the lives of poor and marginalised South Africans. Despite the contrasting realities in Africa, the global luxury and fashion industry cannot ignore the continent in its pursuit for profits and growth. According to Bain & Company, the world’s leading advisor to the global luxury goods industry, the industry has entered a territory that can well be described as the “new normal” because leading markets in Europe, Russia, Americas, Japan, China and Asia Pacific are floundering and growth can only be guaranteed by new markets. Market intelligence firm Euromonitor International adds that although Africa is a long way behind both emerging Asia and Latin America in terms of the size of its middle class, the combination of rapidly growing economies and youthful populations augur well for the next 10 years and beyond for the luxury industry. It also reckons that recent spate of oil and gas discoveries in some African countries could fuel get-rich-quick opportunities for a new generation of millionaires, which translates into a growing market for the luxury industry. Africa’s luxury market, valued at $4 billion, is still a fraction compared to the $280 billion global value. Nonetheless, the continent will be the second driver of growth over the next decade after the Middle East. -AFRICA RENEWAL

REUTERS

Russia’s supe≥ ≥ich stay home as they feel pinch of economy Russian model Alisa Krylova cancelled her order for the latest Mercedes, spent New Year in Moscow rather than skiing in the Alps and now employs Russian staﬀ rather than foreigners. The former Mrs Russia and Mrs Globe beauty pageant winner is among Russia’s super rich but even she and many of her wealthy friends are feeling the pinch from the economic crisis. Driven into “a kind of hibernation”, they are steering clear of celebrity parties and trimming spending to make up some of the millions lost to a weak rouble and a falling stock market. But the enforced modesty has not yet driven the super wealthy out of

Russia or against President Vladimir Putin, who has fanned patriotism during the Ukraine crisis and appealed to businessmen to bring their money home to bolster Russia’s position in the worst standoff with the West since the Cold War. Perched on a golden sofa in the living room of her newly built apartment in Moscow, Krylova, 32, recoils at her compatriots who flocked to buy televisions, refrigerators and buckwheat — a popular staple — when the rouble plunged in December and shops had yet to change their prices to catch up. “And what about me? I am calm in dealing with the crisis, nothing really terrible has happened. Yes, of course, we didn’t fly away on holiday this year

A yacht belonging to Russian billionaire Roman Abramovitch arrives in the French Riviera.AFP because I did not see the point in paying three times over the odds,” said

Krylova, whose ﬂawless beauty has put her on the covers of numerous fashion magazines. “So we decided to holiday in Moscow and St. Petersburg and went to museums, theaters, everywhere, and we had a wonderful time. It was great to go to Red Square to see the Christmas tree and I think it was just as good as skiing in Austria or France.” It’s an attitude Putin is counting on. Since coming to power in 2000, the former KGB spy has tamed the country’s powerful businessmen, or oligarchs, who in the 1990s used their control over the Russian economy to inﬂuence politics and his predecessor, Boris Yeltsin. After bringing some of what he calls Russia’s “national champions”

in the energy sector back under state control, Putin made a deal with private owners of big business — be loyal and stay out of politics and you can keep your assets. It is a bargain which has largely held, even with the rouble down 40 percent against the US dollar since last summer, and the economy weakened by a fall in global oil prices and Western economic sanctions over Ukraine. Konstantin Kostin, a former aide to Putin who now heads the Civil Society Development Foundation, said some in Russia’s business elite were without doubt suﬀering from the downturn. -REUTERS

BUSINESS DAILY | Wednesday April 15, 2015

REGIONAL NEWS POLLS UN representative optimistic about upcoming polls outcome in four countries

UN fo≥esees peaceful W. Af≥ica powe≥ shifts afte≥ Nige≥ia elections Nigeria’s relatively peaceful elections huge country like that, with all the have set the bar high for a string of challenges we associate with Nigeria, can deliver credible elections,” Chamvotes this year across West Africa, bas, who helped monitor the Nigethough tensions in Guinea remain rian polls, told Reuters in a weekend a concern, the United Nations’ top interview. regional official said. Last month Muhammadu Buhari Chambas said he felt “more asousted an incumbent president demosured” about an April 25 election cratically for the first time in Nigeria, in Togo, where President Faure Africa’s biggest economy and most Gnassingbe is seeking a third term populous country. The amid opposition parties’ results of Nigeria’s govercomplaints that he has nor elections also showed reneged on a promise to This sets a a swing toward Buhari’s introduce a constitutional positive example term limit. party on Monday. A group of FrenchGuinea, Togo, Ivory by pointing to Coast and Burkina Faso what is possible: speaking nations, the OIF, helped broker an end to -all with a history of poeven a huge litical violence or rocky a dispute over voter rolls transitions- are also due count≥y like that.. that forced a delay in the election in the tiny former to hold presidential elecMOHAMED IBN CHAMBAS, French colony. tions in 2015. Chambas said he also Mohamed Ibn Cham- UNSPECIAL REPRESENTATIVE did not foresee difficulties bas, UNSpecial Reprein Ivory Coast, where President Alassentative for West Africa, said the sane Ouattara is tipped to win an Ockey lessons from Nigeria’s vote were tober poll. Former president Laurent a strong electoral commission, presGbagbo’s refusal to accept defeat in sure from both citizens and Western observers and the willingness a 2010 election plunged the country of President Goodluck Jonathan to into a brief civil war that killed some concede defeat. 3,000 people. “This sets a positive example by But he expressed concern about pointing to what is possible: even a a “dangerous cleavage” in Guinea,

ROME Nine migrants drown, 144 injured after boat capsizes At least nine people died when an overcrowded migrant boat capsized off the coast of Libya and 144 more were rescued, the Italian coast guard said on Monday, after another heavy weekend for maritime rescue services operating off North Africa. A spokesman for the Italian coastguard said 5,629 people were rescued from 22 different vessels in the three days between April 10-12. Vessels and aircraft from the Italian coast guard and navy as well as merchant ships and an Icelandic patrol boat assigned to the European Triton border protection operation were involved.

MADRID Morocco welcomes former officers’ genocide trial Nigeria’s president- elect Muhammadu Buhari with his supporters. FILE which has split politics along ethnic lines. He urged politicians there to “find ways to build coalitions across the ethnic divide” ahead of its October election. Clashes marred Guinea’s first democratic presidential election in 2010. On Monday at least two people were wounded by gunfire during opposition protests against the government’s electoral timetable. Guinea is also still fighting an Ebola epidemic more than a year after it was declared and appears to be making slower progress than neighbours Liberia and Sierra Leone. “To see the rise in tension and further political crisis is frankly worrying,” Chambas said. “They need to develop a culture of national dialogue,

especially as they confront a deadly disease such as Ebola.” Some diplomats have also raised concern about a power transition in Burkina Faso, which plans elections in October, a year after its long-running leader Blaise Compaore was ousted by protesters outraged at a bid to extend his mandate. Last week Burkina Faso changed its electoral code to bar Compaore’s political allies from seeking oﬃce, prompting them to suspend their participation in transitional institutions. Asked about the transition, however, Chambas said: “So far, so good. There are challenges but the international community is there.” -REUTERS

Bashi≥ set to extend ≥eign as opposition boycotts poll Sudanese voters trickled in to polling stations starting Monday at the start of a three-day election boycotted by the main opposition parties, with President Omar Hassan al-Bashir set to extend his quarter-century in power. The presidential and parliamentary polls are the ﬁrst since Sudan saw its south secede in 2011, losing a third of its land and nearly all of its oil production. Bashir has campaigned on improving the economy, in which inﬂation and unemployment remain high. He has also promised to maintain stability, warning against a change in government while the region is embroiled in violence from Libya to Yemen. In Sudan, security forces are tackling insurgencies in the western

territory of Darfur and along the border with South Sudan. “The elections are good and clean and there’s nothing more I would ask of them,” said Nadia Ahmed Abdelrahman, a 55-year-old local government oﬃcial voting in the capital. “The elections are better than what is happening elsewhere in the region. Look at the death and killing. Thank God we have avoided that,” she said. But voters, who tend to head to the polls later in the day, were thin on the ground in Khartoum early on Monday. The boycotting parties say a clamp down on the opposition, media and civil society has created an impossible environment to compete against Bashir, who has ruled since a 1989

BRIEFING

Sudanese President Omar al-Bashir. He has been in power since 1989 and is likely to extend his reign. FILE Islamist and army-backed coup. Bashir voted close to his residential compound, surrounded by heavy security. He waved to supporters who shouted “God is greatest” as he cast his ballot. The European Union, which ob-

served the last, more widely contested elections in 2010, has criticised the political environment ahead of the polls. The boycott means voters are left to choose between Bashir’s National Congress Party (NCP) and a handful of relatively new groups. Government critics say these form a token opposition that does not diﬀer from the NCP on core issues such as security and the economy. “Look at this place, there’s no one here,” said NCP supporter Abdelaziz al-Hasan, 72, gesturing at a polling station in Khartoum where there were only two other voters. “We’ve seen no posters for anyone besides Bashir. We don’t even know who the rest are,” Hasan, a retired Ministry of Industry oﬃcial, said. -REUTERS

Morocco’s foreign minister said his country was not troubled by a Spanish court’s genocide charges against 11 former ofﬁcials accused of killing and torture in Western Sahara. “Our conscience is clear, and Morocco will continue to be completely transparent on these issues,” Salaheddine Mezouar told reporters in a joint press conference in Barcelona. Rabat “will defend itself with the law and the truth”, he added. The statement comes after a Spanish judge last Thursday upheld charges against 11 Moroccan ex-security ofﬁcials and governors.

JOHANNESBURG Malawians to be repatriated as SA xenophobia increases The Malawian government said it would help repatriate its citizens from South Africa following an outbreak of xenophobic violence in the eastern port city of Durban that has left four people dead. “The situation is really tense as about 360 Malawians are stranded in South Africa following xenophobic attacks there,” Information Minister Kondwani Nankhumwa told reporters. He said the Malawians targeted had “lost everything”, including their passports. The attacks on immigrant-owned shops and homes in Durban’s impoverished townships come three months after a similar spate of attacks on foreignowned shops in Soweto, near Johannesburg.

KAMPALA Uganda exempts minerals and oil sectors from VAT

The Uganda government has granted Value Added Tax exemption for companies involved in the production of oil and minerals. There had been mumbling by all players in the oil and gas sector regarding the 18 per cent VAT charge on capital equipment used in prospecting and production of oil and minerals. In the VAT Amendment Bill 2015, tabled in Parliament by ﬁnance minister Matia Kasaijja, it grants the oil and mining companies this exemption. Mr Kasaijja notes that the amendment is “to provide for tax treatment of the oil and gas and mining sectors.” This had been a demand from the oil companies for over four years, but the government was hesitant to grant the exemption.

Wednesday April 15, 2015 | BUSINESS DAILY

PAGES 16-17 : Posta revamps to

keep up with rivals, tech changes

WEDNESDAY, APRIL 15, 2015

PAGE 18 : Trafﬁc easing project

turns agonising for commuters

Thousands of uncollected containe≥s face auction KRA’s 60-day grace period of storage charge waiver handed to importers expired yesterday BY GITONGA MARETE

Thousands of uncollected containers could be auctioned after a grace period of storage charge waiver handed to importers nearly two months ago expired yesterday. The Kenya Revenue Authority (KRA) could not immediately give the number of containers cleared during the waiver period, with Ms Fatma Yusuf, the oﬃcer in charge of marketing and communication southern region, saying they were still compiling data. KRA had on February 14 announced that the government would waive all charges accruing on storage of containers discharged at the port before November 30, 2014, provided they were cleared within 60 days. “All such goods that will not have been removed from the port (Mombasa) and Container Freight Stations (CFSs) upon expiry of the 60-day notice shall be sold by public auction without further reference to the owners,” KRA said in the notice. The move was prompted by the high number of containers lying at the port, some of which have remained at the facility for over 10 years, holding up space at the CFSs and port yards.

Overstayed containers Multiple sources interviewed at the port by Shipping & Logistics indicated that the number of overstayed containers could be between 2,000 and 2,500. According to information obtained from the Kenya Ports Authority (KPA), only 53 applications had been received for processing before release of containers Of these, 36 were for Uganda, 11 Kenya, two Rwanda and one Burundi, said a KPA oﬃcial who declined to be named because he is not authorised to release the data. But even as the waiver expires, the few containers cleared over the past 60 days have sparked controversy with a section of industry players saying the waiver was “cosmetic”, meant to open a window for illegal auctioning of containers and the cargo in them. Some importers said they were yet to clear

Containers at Mombasa port. Ofﬁcials say overstayed containers are causing congestion and inefﬁciency at the port. FILE

their cargo due to bureaucracy and refusal by some CFSs and shipping lines to waive the charges. Mr George Kadima, the Uganda business representative in Mombasa, claimed that some CFSs were not oﬀering the waiver as directed but gave a 20 per cent discount. “Some containers have accrued over $200,000 (Sh18 million) yet the goods (in them) are not worth that much, so if one is given only 20 per cent discount it beats the logic of a waiver,” he said, adding that this was hindering the clearing process. Mr Kadima said that since some shipping lines had declined to give the waiver, importers could not collect cargo that had accrued high fees. However, CFS Association of Kenya executive oﬃcer Daniel Nzeki denied the claim, saying they had instructed all the facilities to waive the charges and that he

was not aware of any manager who had refused to heed the call. Once cargo has been delivered to its destination, empty containers are supposed to be returned to the shipping line within a period of 14 days for local and up to 45 days for transit cargo, failure to which it attracts a charge (called demurrage). Shipping lines charge the fee differently. Mr Kadima said the fee ranges from $7 (Sh630) to $14 (Sh1,260) per day depending on the size of the container, with some shipping lines charging up to $50 (Sh4,600) for containers that have not been returned for years. “Some shipping lines complied with the directive but others did not. ‘‘Also some importers in the interior parts of Uganda and Rwanda were not informed about the waiver early enough

THE NUMBER OF OVERSTAYED CONTAINERS IS 2,000 TO 2,500

so I think there is need to extend it,” said Mr Kadima, adding that during the waiver period they had cleared less than 30 containers destined for Uganda. But Kenya Ship Agents Association (KSAA) executive officer Juma Tellah defended the shipping lines, saying none had declined to offer the waiver as long as importers or their agents turned up with the correct documents. “Some of them went to shipping lines with the notice as it was published in newspapers. They should know that proper procedures must be followed,” he said. The Intergovernmental Standing Committee on Shipping (ISCOS) has also raised concern over the cargo, saying the presence of overstayed containers was causing congestion and inefficiency at the port and increasing the cost of doing business. “ISCOS supports the initiative to decongest Mombasa port and advises all shippers with overstayed cargo to take advantage of the amnesty and clear it,” said Mr Kenneth Mwige, the organisation’s secretary. gmarete@ke.nationmedia.com

BUSINESS DAILY | Wednesday April 15, 2015

Wednesday April 15, 2015 | BUSINESS DAILY

DISTRIBUTION | TRAVEL | FINANCING

DISTRIBUTION | TRAVEL DISTRIBUTION| TRAVEL || FINANCING

CAJ chairperson Otiende Amollo (left) with Kenneth Mwige, ISCOS secretary-general.

COURIER SERVICE

AIR TRANSPORT

Posta ≥evamps to keep up with ≥ivals, tech changes INNOVATION Postal Corporation sheds slow

Unlike public transport companies, courier ﬁrms charge higher prices to cater for door-to-door deliveries

image to reclaim its space in parcel delivery Apart from technology firms that provide Internet and mobile phones, bus Cut-throat competition in the parcel companies like Easy Coach, Transline, delivery business is slowly pushing the Guardian and big firms like Nation CouPostal Corporation of Kenya to spruce up rier have entered into cargo and parcel its image as it fights for space in a mar- delivery services, betting on pricing to ket dominated by technology firms. woo customers in a market that PCK Post offices are shedding their old enjoyed monopoly. image— long queues of customers wait“Customers have been offered qualing to collect money orders, letters or ity services to beat the competition. But complain about lost parcels — giving most importantly, with these rivalries, way to modern offices equipped with distribution is very fast, taking almost cyber computers, photography studios one day within the locality,” said George and have snacks for waiting customers. Omondi, a staff at Easy Coach. Mr The post ofOmondi said fices are also new contracts used for paystill come in OTHER THAN MOVING THINGS ACROSS each day, some ment of water THE COUNTRY, WE WANT TO MEET THE CONVENIENCE OF CUSTOMERS, ALL AT and electricity with huge profONE PLACE bills, distribuits than others. tion of salaries During his to security oftwo-year stay, ficers and facilitating cash transfers to the highest he has recorded on mailing was Sh150,000, he said. the disabled. The cost of transferring a letter “Other than moving things across the country, we want to meet the con- ranges from Sh200 to Sh270 across the venience of customers, all at one place,” country. The price range is attributed to said John Gisoni, a branch manager at the quality of packaging, with innovaPostal Kenya’s Tom Mboya office. tive one’s attracting higher fees. “It is at this place that we pay money A 50-kilogramme parcel from Naifor the disabled too.” robi to Kisumu will range from Sh1,100 BY OLOO WINNIE

A Fastjet aircraft. It is expanding into Zimbabwe, Kenya and South Africa. FILE

Fastjet ≥aises Sh6.9 billion to fund its Af≥ican ≥outes expansion plan BY ANNIE NJANJA

The London Stock Exchange (LSE)-listed Fastjet, has raised Sh6.9 billion ($75 million) to finance its expansion into Kenya and other African routes, stirring up a niche that has attracted players like Jambojet and Fly540. The funds were raised after the company sold five billion shares on the LSE to investors at a discounted price of Sh1.36 each. The funds will be used to increase Fastjet’s fleet number and open-up new routes across the continent, its management has said. “The net proceeds of the fundraising will be deployed in two key areas; expansion working capital and the acquisition of aircraft,” read an official statement on placing in part.

Further expansion The statement added: “There is a working capital requirement to fund further expansion and the launch and growth of operations in Zambia, Zimbabwe, Kenya and South Africa. This will be sufficient to build a sizeable operation in each country.” Currently, Fastjet which operates in Tanzania having entered the market in November 2012 has three domestic and four international routes linking passengers from Dar es Salaam to Johannesburg, Harare, Entebbe and Lusaka. The airline plans to acquire an Airbus A319 aircraft, which has a capacity of 124 passengers, in line with the plan to open new routes. The aircraft will be the first additional plane, after the current fleet of three bought when the company was launched in Dar es Salaam. “The current fleet of three aircraft is now almost fully utilised and growth opportuni-

$75m

Amount in dollars raised by Fastjet at the London Stock Exchange as it gears to expand into the emerging African market.

ties will require increased numbers of aircraft over the remainder of 2015. This will enable fixed overhead costs to be further spread over a larger operation.” The carrier is betting on the current expansion plans to improve profitability. Building on the success of the Tanzanian operation, Fastjet plans to roll out the model across the entire African continent, the company announced. Its foray into Kenya is likely to change the competition landscape in a niche where players like Fly540 and Jambojet are yet to make a significant impact. The company achieved its first profitable month of operations and sold its millionth seat in December last year. The profitability, the company said, was due to the demand of its services during the festive season and the low fuel prices. “The key contributors to this were the maximisation of fleet capacity and improved revenue per passenger. Further contributors, on a smaller scale, were load factor -the number of passengers as a percentage of the number of available seats flown-and a reduction in aviation fuel cost.” During the announcement of Fastjet’s expansion and growth plans, the company appointed Clive Carver as the intern chairman. ANjanja@ke.nationmedia.com

letter

parcel(50kg)

Easy Coach

200

700

Teleposta Towers

200

13200

Guardian

200

1100

Nation Courier

270

1620

Wells Fargo

300

2300

Sorting mail at Nyeri Post Office. The Postal Corporation of Kenya has embraced new technology and improved other services as it fights for space in the parcel delivery business. FILE to Sh1,650 with delivery taking a day. Victor Adwar, a customer at the Huduma Centre says it takes him six hours to receive his paper parcels from Bunyala. He then sends set examination papers back on the same day. His business is entirely dependent on quality and speed at the post offices. “I have to always keep running, so an efficient delivery system is basic, I

cannot travel every day and plan all work. It can be very expensive and tiresome,” he said. For loyal postal customers, however, the old image of PCK still resonates in the market. Mr Owen Singei, 46, has retained his postal address for sending seasonal holiday cards to his family in Kisumu. “Writing letters, sending cards and

parcels to loved ones is like capturing moments in a piece of paper, creating visuals that leave smiles on their faces and connecting them to my world, then keeping them for reference,” Mr Singei said. He says unlike in the past when the sole purpose of a post office was for mailing he is pleased with the upgrade. “It adds life to the adage that old is gold and memories associated with it,” he says. Many organisations still have a postal address, besides telephone and email contacts. A “messenger” is still relevant in collecting and distributing parcels and letters. The persistent investments by new players in the parcel delivery service such as Nation Courier only shows that print messages is part of the future. The Huduma Centre along Kenyatta Avenue receives an average of 1,200 letters and parcels per day. It rises to 2,500 on seasonal holidays and right before candidates sit in for national exams. The centre is normally busy, packed with people in need of service. A staff at the centre says that long queues stretch mostly in October and December. Mr Gisoni says that post offices have improved to serve the public in a bigger way, looking beyond interpersonal communication to employment opportunities and in turn contributing significantly to the GDP.

Cash-in-t≥ansit companies go high-tech to cu≥b theft BY EDWIN MBUTHIA

Insecurity in Kenya is driving new investments in the cash- in- transit (CIT) business as companies strive to woo customers. A number of service providers interviewed by the Shipping & Logistics said they are injecting billions of shillings in expansion and technology upgrade to match the country’s security environment. Wells Fargo, which has been in the Kenyan market for 38 years, tops the list of CIT service providers lining up mega investments that could radically change their business profile in the industry. “Kenya has so many robberies especially in the commercial sector,” said Gray Cullen, head of CIT services at Wells Fargo. “Our intention is to take the risk away from the client by storing in a large commercial vault warehouse, subrogating the cost amongst many different clients and thus providing an all risk insurance cover to our customers at affordable prices,’’ he said. The company is setting up commercial vault with a capacity of 180,000 square feet—arguably the largest in East Africa—which will be opened next month. The facility will store high-

value goods like electronics, telecommunication gadgets, batteries, scratch cards, liquids from the oil and gas factories, tyres and other high-value bulky goods that are often targeted by criminals. Besides the commercial vault, the company has also been riding on technology to expand its market share, providing real-time banking services even before the CIT team leaves a client’s location. The ﬁrm said this technological advancement has greatly improved its retail client’s conﬁdence as large sums of money is depos-

KK Security armoured vehicle. Cash- in- transit ﬁrms are investing billions in technology to curb theft. SALATON NJAU

ited by simply swiping smart cards within the premises, leaving the risk of transporting the cash to the CIT team. Wells Fargo’s biggest bet lies in an economy that is fast moving towards cashless transactions. Transporting money faces many risks with security escorts forced to travel in diﬀerent cars from the one carrying the cash.

The CIT firms are leaving nothing to chance in their bid to prevent loss of cash on transit. Most have now put all their service units under 24-hour surveillance. The security companies also ensure their staff are vetted and retained for a set minimum period before they are posted to the CIT section where they are regularly shuffled within the offices to mitigate internal losses. Securex, also a CIT provider for over 40 years, said its CIT staff must have certificates of good conduct. “We do background checks on all employees by counterchecking with all their referees and the local chiefs from their residential area and place of birth,” said Brian Sagal, the marketing and communications manager at Securex. Like Wells Fargo, the company has placed its bet on technology upgrade, moving away from one-time PIN ATMs servicing system to an interactive code system locks on vehicles and safes to reduce intra-company fraud. Unlike the one-time PIN combinations where access codes are generated to provide access only once, the interactive system generates the access code once a staff servicing an ATM or a safe has keyed in the PIN code which is sent to the company’s control room.

WACHIRA MWANGI

M-ship app to monito≥ delays in t≥anspo≥ting goods in ≥egion BY GITONGA MARETE

A new mobile application, M-ship, is set to monitor delays in moving goods within sub-Saharan Africa region, helping cut transport costs. M-ship was developed by the International Standing Committee on Shipping (ISCOS), an initiative of Kenya, Uganda, Tanzania and Zambia. The app will help detect areas where delays occur during clearance and transportation of goods, cutting non-tariﬀ barriers. ISCOS secretary-general Kenneth Mwige said the system would assist in identifying areas that need improvement by collecting data and sending it to the relevant authorities. Anyone wishing to report an incident will be required to dial *290# using the Safaricom network after which they will be guided through steps on how to ﬁle a complaint or report malpractices. “Users are not only encouraged to report incidents of corruption and delays, but they should also tell us when things are moving smoothly so that we are able to measure services in a more comparative manner,” said Mr Mwige. The mobile app, which was developed at a cost of Sh9 million ($100,000) will initially be free, but later users will pay.

At the moment, the only charges the system attracts are the normal SMS rates. Users of other networks would also start using the app soon, said Mr Mwige who spoke last Friday when ISCOS signed an agreement with the Commission on Administration of Justice (CAJ) on the use of the system. CAJ chairman Otiende Amollo said the system will be interfaced with that of the Ombudsman and would go a long way to inform the commission on the problems Kenyans are facing in the maritime sector and along trade routes. “Government institutions should take complaints filed through this system seriously because they will impact on their annual ranking,” he said. He said so far, the commission had received 100,000 complaints from members of the public since inception three years ago, of which 80 per cent have been resolved. The complaints were channelled through CAJ offices in various parts of the country and at the Huduma Centres countrywide. “They range from delay to process documents in public offices to incompetence and corruption. At least 50 per cent of the complaints have been brought to our attention through letters,” he said.

BUSINESS DAILY | Wednesday April 15, 2015

Wednesday April 15, 2015 | BUSINESS DAILY

DISTRIBUTION | TRAVEL | FINANCING

DISTRIBUTION | TRAVEL DISTRIBUTION| TRAVEL || FINANCING

CAJ chairperson Otiende Amollo (left) with Kenneth Mwige, ISCOS secretary-general.

COURIER SERVICE

AIR TRANSPORT

Posta ≥evamps to keep up with ≥ivals, tech changes INNOVATION Postal Corporation sheds slow

Unlike public transport companies, courier ﬁrms charge higher prices to cater for door-to-door deliveries

A Fastjet aircraft. It is expanding into Zimbabwe, Kenya and South Africa. FILE

Fastjet ≥aises Sh6.9 billion to fund its Af≥ican ≥outes expansion plan BY ANNIE NJANJA

$75m

Amount in dollars raised by Fastjet at the London Stock Exchange as it gears to expand into the emerging African market.

letter

parcel(50kg)

Easy Coach

200

700

Teleposta Towers

200

13200

Guardian

200

1100

Nation Courier

270

1620

Wells Fargo

300

2300

Cash-in-t≥ansit companies go high-tech to cu≥b theft BY EDWIN MBUTHIA

KK Security armoured vehicle. Cash- in- transit ﬁrms are investing billions in technology to curb theft. SALATON NJAU

WACHIRA MWANGI

M-ship app to monito≥ delays in t≥anspo≥ting goods in ≥egion BY GITONGA MARETE

BUSINESS DAILY | Wednesday April 15, 2015

Nai≥obi t≥aﬃc easing p≥oject tu≥ns agonising fo≥ commute≥s REALITY CHECK Road users are spending more time

on roads and pay more money as fares increase BY WAINAINA WAMBU

FACTBOX

Hardly two weeks after the Nairobi county government introduced new traffic rules that prohibit right-turns at key roundabouts, the capital city’s roads have turned chaotic with some residents opting to walk to work. The implementation of the rules, which have created confusion as motorists struggle to familiarise themselves with the new routes, has now cast doubt on whether the plan will hold when schools reopen next month. During the Easter break City Hall and the Transport ministry closed key roundabouts buoyed by the success of a similar experiment at the Old Nation roundabout where traffic from Ngara would stretch to Tom Mboya Street. Officials blame the current snarl-ups on lack of sensitisation about the new system, which has seen motorists spend more time than before on the already congested roads. “Due to these sudden introduction of these changes, some of the motorists had not fully comprehended what was

Other efforts Over the years there have been several initiatives to ease traffic congestion in the city centre including the Mising Link Roads projects which is still ongoing. Traffic jams are estimated to cost billions in terms of wasted manpower. happening at the start,” said Nairobi traffic commandant Edward Mwamburi. “But after a few days, most motorists seem to have grasped the new rules.” Mr Mwamburi told the Business Daily. Uhuru Highway has since the closure of the key roundabouts experienced heavy traffic on its southern fringes even as traffic flow improves on its northern part helped by the closure of the mall roundabout which motorists use to get into Westlands. The closure of the Nyayo stadium and the Bunyala Road roundabouts have however worsened traffic gridlocks with motorists spending hours on the roads. Most vehicles from Kiserian, Rongai, Karen and

Lang’ata prefer to turn at the Strathmore/T-Mall roundabout, leaving thousands of commuters stranded outside the city centre. “I have come to accept that I will always walk the distance from town centre to Madaraka Estate to get a vehicle to Kiserian rather than wait at the usual stage in town,” said Mr James Ombui who commutes to the city every day. “The few vehicles that brave the heavy traﬃc are all taking advantage to overcharge us. They are all asking for between Sh150 and Sh200 instead of Sh70 and Sh100 during the peak hours.” The city’s transport managers say they need ample time to monitor and pinpoint the non-functioning areas. “I am upbeat that this plan will be a success, the only thing I would advise motorists is that unlike before one has to plan or plot their route before hitting the road,” Mr Mwamburi said on phone. In part of the new traﬃc rules, the Nairobi governor Evans Kidero on Sunday announced that trucks will not be allowed within the city beyond Ole Sereni. wwambu@ke.nationmedia.com

MARITIME BRIEFING Six nominees shortlisted for IMO secretary-general position The International Maritime Organisation (IMO) has named the six nominees for the position of secretary general, to succeed Koji Sekimizu who announced last year his decision not to stand for re-election. The candidates for the role include Andreas Chrysostomou of Cyprus, Vitaly Klyuev of Russia and Ki-tack Lim of South Korea. Others are Dr Maximo Mejia Jr of the Philippines, Andreas Nordseth of Denmark, and Juvenal Shiundu of Kenya. The elections will be held during the 114th session of the IMO Council which meets from June 29 to July 3. The successful candidate will take over the leadership mantle at the IMO from next year.

Global merchant operators call for EU action on African immigrants European and global operators of merchant ships have joined forces with seafarers’ unions to urge EU member States to take immediate collective action to address the growing humanitarian crisis in the Mediterranean Sea. Since 2014, thousands of people have been attempting the dangerous sea crossing to Europe, from Africa and the Middle East, in

overcrowded boats not ﬁt for the purpose, with over 3,500 people having already lost their lives. Many of these people are at the mercy of smugglers.

Union urges claustrophobics to stay away from cargo ship holds People suffering from claustrophobia (irrational fear of having no escape or being closed-in) should stay away from hold of a cargo ship, a labour union has warned. Nautilus, a trade union and professional organisation for maritime professionals in UK has issued the warning in line with the dangers of working in the conﬁnes of a freighter where oxygen can be in very short supply. Following two recent deaths the union is also calling for improvements to secure a much better standard of risk assessments, moving away from a generic assessment to one that addresses particular hazards or design features associated with each individual enclosed space.

Wednesday April 15, 2015 | BUSINESS DAILY

MONEY & MARKETS NEWS I REVIEWS I ANALYSIS

Mumias cash call set to test investo≥s’ appetite fo≥ stock

Nai≥obi listed amongst top att≥active cities BY JOHN GACHIRI

MARKET Shareholders likely to be reluctant

to take up offer with focus shifting to State Munywoki said when a company has reached the level of requiring a bailout Mumias Sugar Company is likely to rely investors may be reluctant to pump in on support from institutional investors more money into it. when it returns to the market since De“The likelihood is that the main incember 2006 with a first-time cash call, stitutional shareholders, including the analysts said. government, might need to pump in While agreeing the move to seek ad- more capital and pick up extra rights if ditional capital is the right one for the the issue is to be a success. However, we sugar miller, analysts have cautioned are still waiting to see the level of commitment the government of low retail investor apwill take up in the rights,” petite. said Mr Munywoki. Mumias Sugar share...main holders approved the rights Mumias Sugar has issue at an extraordinary one of the highest numinstitutional general meeting held on bers of retail investors sha≥eholde≥s, April 10 in Kisumu, accordin the Nairobi Securiincluding the ing to a press notice signed ties Exchange, with the by the managing director gove≥nment, might biggest shareholder bethe government with Coutts Otolo yesterday. need to pump in ing a 20 per cent stake. The miller is turning to mo≥e capital the market for financing to The sugarcane miller, pay dues owed to farmers has left a bitter taste in and suppliers and fund a investors’ mouths after ERIC MUNYWOKI, SECURITIES ANALYST restructuring. its share price slumped In 2006, the State sold off a chunk from a high of Sh65 in 2006 to the curof Mumias’ shareholding at Sh49.50 a rent Sh2.15 . The share has been see-sawing beshare with stockbrokers taking up a sizeable allotment of stocks and large- tween Sh1.40 and Sh3.35 over the past six months on speculative trading and ly burning their fingers. Old Mutual securities analyst Eric reaction to both positive and negative BY CHARLES MWANIKI

Mumias Sugar Company managing director Coutts Otolo. FILE

news. While the details on pricing, dates and allocation criteria of the rights are yet to be announced, the new shares are projected to be within the reach of most investors given that the counter has not broken above Sh3.50 for the past one year. Analysts at Genghis Capital said that Mumias Sugar’s restructuring and financing option offers the best option for shareholders. “This strategy would help the company meet its debt obligations to suppliers and financial institutions, which have been defaulted by the miller,” said Genghis in a market report. The company in the overhaul closed down its loss-making water bottling plant this week. The unit accounted for 0.25 per cent of the revenues, and was part of a diversification drive launched a few years ago. It included electricity and ethanol production. The bailout plan agreed with the

government calls for reduction of staff by about 300 personnel and changes in board and management. The firm is already recruiting new managers, a move that Mr Munywoki said is a positive for the company. Analysts at Standard Investment Bank, however, caution that even as it restructures internally, Mumias still faces a difficult operating environment which makes recovery more difficult. “We believe the miller will still face challenges as the company continues to battle raw material supply problems due to competition, while inability to compete on price remains a key concern for the company,” said SIB in a brief on the company yesterday. Kenya was granted a one-year extension for Comesa duty safeguards last month, offering local millers temporary respite from cheaper regional sugar. cmwaniki@ke.nationmedia.com

Property consultancy JLL says Nairobi hotel market remains attractive despite the city’s insecurity. JLL has overall ranked Nairobi 15 out of 20 most attractive and dynamic cities in its annual City Momentum Index report. It said the numerous multinationals setting up shop in Nairobi, ﬂights by national carrier Kenya Airways and the city hosting major international conferences are factors creating a market for hotels. Village Market Midscale, Ramada Nairobi, Radisson Blue and Hilton Garden Inn are some of the major brands opening franchises in the capital to cater for the demand, expected to grow. “The pipeline of new hotels for Nairobi is impressive, yet the reality is that they may take a long time to open. There is a risk of short-term oversupply in the market. However, this should eventually be redressed by increased demand stimulated by regional economic growth. Aside from Upper Hill and Westlands, the airport area will see high supply growth,” said JLL. JLL, however, said the industry’s revenue generation potential has been suppressed by the travel advisories issued by foreign governments as a response to terror attacks.

P≥ivate equity Ab≥aaj to invest Sh92bn in Kenya, fou≥ othe≥ count≥ies BY JOHN GACHIRI

Private equity firm Abraaj Group says Kenya is among five African markets where it will invest its new Sh92 billion war chest. Abraaj announced plans to invest in local companies after closing the Abraaj Africa Fund III (AAF III) which raised $990 million (Sh92.3 billion) from European, North American and African institutional investors. “AAF III will focus on well-managed, mid-market leaders in sectors most likely to benefit from demand driven by the rapid expansion of a young, urban, middle class across Sub-Saharan Africa,” said the firm in a statement. “These sectors include consumer

goods and services, consumer ﬁnance, and resource and infrastructure services in the core geographies of Nigeria, Ghana, Côte d’Ivoire, South Africa and Kenya.” Abraaj Group chief executive Arif Naqvi said investors in the fund were looking for exposure in the sub-Saharan market due to the growing middle class and fast rate of urbanisation. “The strong demand for this new fund reﬂects increasing investor appreciation for the powerful growth story unfolding across Africa. ‘‘It is a story driven by rapid urbanisation and favourable demographics that are fuelling consumption across multiple sectors from an expanding, young middle class,” Mr Naqvi said in

the statement. The private equity firm has a Nairobi-based office enabling it scout for deals more efficiently. Avenue Hospital, Nairobi Women’s Hospital, UAP Group, ARM and Brookside Dairy are some of the companies it has invested in.

Pick-up in fund raising

Opportunity Abraaj Group CEO says investors in the fund are looking for exposure in sub-Saharan Africa due to the growing middle class and fast rate of urbanisation.

The private equity industry has witnessed a pick-up in fund raising and investment in the last few years. Helios raised close to Sh100 billion in January and like Abraaj, the new fund included Kenya as a region where it will invest. In 2014 Ascent Capital raised $50 million (Sh4.6 billion) while Dutchbased DOB established a fully-ﬂedged

Nairobi oﬃce. Industry players say the number of companies meeting the threshold to attract investment exceeds available funds and this is catalsying the fund raising. “East Africa is clearly an interesting destination and we are seeing more opportunity than we are able to serve,” Fanisi Capital managing partner Ayisi Makatiani told the Business Daily. Fanisi recently invested Sh193.2 million in European Foods Africa Limited (EFAL), a Nairobi-based food processor. The funding will strengthen the company’s operational systems and ensure stability. The ﬁnancing was in the form of both debt and equity but the breakdown was not provided.

BUSINESS DAILY | Wednesday April 15, 2015

Wednesday April 15, 2015 | BUSINESS DAILY

MONEY & MARKETS GLOBAL

COUNTY BUSINESS WARNING If exodus gathers pace it could signal new pressure on oil prices

Oil investo≥s now ≥acing fo≥ the exit, ≥isking new slump Oil investors who amassed a $6 billion long position in exchange traded funds, occupying as much as a third of the US futures market, are now racing for the exit at a near record pace. Outflows from four of the largest oil-specific exchange traded funds, including the largest US Oil Fund, reached $338 million in two weeks to April 8, according to data from ThomsonReuters Lipper. That is the first two-week outflow since September and the biggest since early 2014, marking a turnaround from heavy inflows in December and January on bets that oil prices would quickly rebound from six-year lows. If the exodus gathers pace it could signal new pressure on crude oil prices that had begun to stabilize at around $50 a barrel this year following their 60 percent plunge, says John Kilduff, a partner at energy fund Again Capital LLC in New York. Retail investors may have been “trying to bottom fish and got washed out with the recent new low,” he said. Global oil ETF holdings were equivalent to 150 to 160 million barrels’ worth of crude oil futures as of last week, according to ETF Securities. That would represent as much as 30 percent of open interest in the most-liquid US oil futures contract, which saw record open interest of 530,000 lots in March, although some of those fund hold-

PERISHABLE CARGO HANDLERS IN EAST AFRICA

ings are in other contracts. It is probably premature to say the twoweek outflow marks a sustained sell-off that could trigger another slide in crude prices given the ETFs saw their biggest ever weekly inflow of $818 million just weeks earlier. In any case, the funds have become an unpredictable irritant for Saudi Arabia and other Opec producers, first slowing the slide in prices that could force higher-cost producers such as US shale drillers to curb output, and now blurring the outlook. “Passive investors have become a problem,” Philip K. Verleger, a consultant and energy economist, said in a note on Monday. ETF inflows are “denying those in the Middle East the decline in non-Opec output they hoped to achieve”. Traders say two factors may be behind the recent exodus. First, there is a growing sense that any rebound in crude prices may be months if not years away. Secondly, there is a growing awareness of the financial penalty of the current “contango” market, in which investors must sell cheaper nearterm futures contracts to buy more costly next-month contracts every month. Recently, top producer Saudi Arabia said it pumped more crude than ever before in March; Iran reached a framework deal with western powers that may unleash a

Workers at an oil rig. FILE

torrent of oil next year; and US stockpiles continue to set record highs. “The news lately has been uninspiring. Investors don’t want to be long and wrong in perpetuity,” said David Mazza, head of research at State Street Global Advisors, an institutional asset management ﬁrm with more than $2.4 trillion in assets. A market conﬁguration where futures contracts months ahead are more expensive than the near-term ones makes holding on to long positions increasingly costly. For instance last week, when the United States Oil Fund ETF began rolling its positions, the May contract was trading at between $1.25 and almost $2 a barrel below the June contract CLc1-CLc2. The fund had rolled more than 40,000 lots to hold some $2.2 billion worth of June futures by Friday; it still had another 14,000 lots to roll forward, fund data showed. -REUTERS

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Special Feature

Pepsi ≥eplaces Coca-Cola as oﬃcial NBA sponso≥ PepsiCo will sponsor the National Basketball Association, ending a 28-year deal between its arch rival Coca-Cola and the NBA. PepsiCo will be the oﬃcial food and drinks partner of the NBA, the Women’s National Basketball Association, NBA Development League, and USA Basketball. The deal, which starts next season, covers North America, and also China, where NBA is growing in popularity. Financial terms of the sponsorship were not disclosed. “The NBA has established itself as one of the most exciting and innovative sports leagues in the world,” PepsiCo chief executive Indra Nooyi said. “We look forward to work-

ing together to redefine the meaning of sports marketing partnership.” The new deal will involve the Pepsi range, as well as the company’s Aquafina and Lipton Brisk drinks, and Doritos and Ruffles crisp brands. Mountain Dew will become the NBA’s lead soft drink brand. Coca-Cola said it had “made the decision not to renew our global contract” with the NBA, but would continue sponsoring individual teams and players. Meanwhile, Coca-Cola said it had signed a multi-year agreement with the US Soccer Federation and Major League Soccer, and that it would be the beverage sponsor for the US football and the Mexican national teams’ US tours.

Alcatel’s Onetouch smartphone at a past global exhibition at the Las Vegas Convention Centre. AFP

Nokia says it is in talks to buy F≥ench ≥ival Alcatel-Lucent Nokia Oyj is in talks to buy Alcatel-Lucent , a deal that could create a European telecoms equipment group worth over 40 billion euros ($42 billion), and cut costs at two of the industry’s weaker players. In a joint announcement, the Finnish and French companies said there could be “no certainty at this stage that these discussions will result in any agreement or transaction.” Analysts and investors also ﬂagged potential opposition from the French government, which has said in the past it sees the communications industry as strategic, and is sensitive about the job cuts that often go with cost-saving takeover deals. The French Economy Ministry had no immediate comment. Nevertheless shares in Alcatel, a group worth about 11 billion euros ($11.6 billion) based on Monday’s closing share price, rose 14 per cent on Tuesday morning. Shares in Nokia,

worth about 29 billion euros ($30.59 billion) before Tuesday’s announcement, dropped six per cent. The statement came in reaction to media reports that the two had revived tie-up talks that have been on and oﬀ for years in an industry that is consolidating. A year ago, Nokia sold its struggling handset business to Microsoft Corp. This week’s media reports were focused on the idea that Nokia may buy Francebased Alcatel’s mobile networks arm. Clairinvest fund manager Ion-Marc Valahu expressed scepticism over the merits of the proposed deal. “They are two of the weaker players in the industry. They could come up with some cost cuts, but just because you combine one weak player with another weak player does not necessarily mean that you will end up with a stronger player.” -REUTERS

BUSINESS DAILY | Wednesday April 15, 2015

MARKET DATA Agro Commodities Market Early Morning wholesale commodity prices Date 09.04.2015 COMMODITY Unit Kg Nairobi CEREAL Dry Maize Bag 90 2800 Green Maize Ext Bag 115 3600 Finger Millet Bag 90 7300 Sorghum Bag 90 4000 Wheat Bag 90 LEGUMES Beans Canadian Bag 90 6400 Beans Rosecoco Bag 90 6800 Beans Mwitemania Bag 90 6400 Mwezi Moja Bag 90 6400 Dolichos (Njahi) Bag 90 6800 Green Gram Bag 90 11500 Cowpeas Bag 90 7500 Fresh Peas Bag 51 3800 Groundnuts Bag 110 13000 ROOTS & TUBERS Red Irish Potatoes Bag 50 2400 White Irish Potatoes Bag 50 2500 Cassava Fresh Bag 99 2000 Sweet Potatoes Bag 98 3600 VEGETABLES Cabbages Ext Bag 126 2800 Cooking Bananas Med Bunch 22 560 Carrots Ext Bag 138 4200 Tomatoes Lg Box 64 5500 Onions Dry net 13 900 Spring Onions Bag 142 2200 Kales Bag 50 3000 Chillies Bag 38 3400 Cucumber Bag 50 2400 Capsicums Bag 50 3200 Brinjals Bag 44 2000 CauliямВower crate 39 2800 Lettuce Bag 51 2400 FRUITS Passion Fruits Bag 57 4800 Oranges Bag 93 3600 Lemons Bag 95 2800 Mangoes Local Bag 126 2700 Mangoes Ngowe Sm Basket 25 1100 Ripe Bananas Med Bunch 14 640 Limes net 13 900 Pineapples Dozen 13 740 Pawpaw Lg Box 54 2000 Avocado Bag 90 2700 OTHERS Eggs Tray

Commodities

Mombasa

Kisumu

Eldoret

Kisii

2800 6000 7900 2700

3400 3000 7200 3600

2200 2200 7200 5400 3400

3200 6400

7200 7200

8800

6800 6500

8000 7600

7650 9900 6300 4500 14080

13000 8200 2500 10000

3500 4000 1800 3300

3200 3200 2100 2500

4000 700 6900 6300 1100 3800 2200 3000 2000 1500 1760 3900 4000 5500 3000 3400 1250 475 850 900 1100 3300 300

11250 11700 6300 2040 12600

HAVANA Tourists from the United States eat at a restaurant in Havana last week. With sanctions easing, Cuba is bracing for a surge in American visitors who are starting to discover the country and could overwhelm its small tourism industry. AFP

13200

2200 2000

3500

2400

2200

2500 300 5000 5000 1040 1500 3500 1400

2200 1000 1800 4000 1400 780 1600

3200 350 6000 7000 600 1600 2800

2600 1400

2000

3000 3000 1700 2800 1800 300

3705 3200

650 1300 1600

910 3780 2100

360

Sanctions ease

Global Commodity Prices

3000 2600

Effective date: 14th April 2015

2000 500 600

300

360

OPEN 413.01 1,059.25 139.08 2,208.10 558.85 270.72 512.39 437.86 93.23 1,897.57 4,202.13 71.39 2,282.99 301.98 336.14 497.53 50,568.05 1,881.98 537.52 122.59 166.93 925.67 6,675.20 1,059.68 1,222.06 563.20 515.67 67,151.47 668.84 298.90 255.21 643.45 758.92 4,653.89 41,711.46 732.52 2,107.68 132.98 1,356.97 121.62 1,724.33 972.79 766.25 524.99 447.08

CURRENCY LAST NET CHNG

COMMODITY 320

MSCI Emerging Markets Sector Indices PCT.CHNG -10.13% -1.63% 0.73% 9.65% -0.19% -1.99% 1.40% -1.92% -8.89% -1.07% -1.28% 2.37% -4.40% 2.23% 0.65% 0.83% -0.02% -0.83% 0.70% 1.18% 1.06% 11.07% 2.17% -3.08% -1.05% 2.36% -9.77% -1.39% -4.62% -0.86% -4.19% 1.32% 0.82% -4.56% -1.07% -5.88% -4.04% 0.90% 2.22% -13.06% 1.48% -5.80% -7.40% -1.52% -6.88%

MONEY MARKET FUND

SOFTS

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

NAME LAST NET.CHNG CI-UAE 413.01 -46.54 CI-AC AMER. 1,059.25 -17.51 CI-ASIA PAC 139.08 1.01 CI-ARGENTINA 2,208.10 194.39 CI-BRIC 558.85 -1.08 BRIC 270.72 -5.48 BRIC GROWTH 512.39 7.09 BRIC VALUE 437.86 -8.58 CI-BAHRAIN 93.23 -9.10 CI-BRAZIL FREE 1,897.57 -20.46 CI-CHILE 4,202.13 -54.57 CI-CHINA FREE 71.39 1.66 CI-COLOMBIA 2,282.99 -105.06 CI-CZECH REPUBLI 301.98 6.58 CI-EAFE+EM 336.14 2.18 CI-EU 497.53 4.10 CI-EM 50,568.05 -12.16 CI-EGYPT 1,881.98 -15.73 CI-AC EUROPE 537.52 3.73 CI-C.FE 122.59 1.43 CI-GOLD DRAGON 166.93 1.75 CI-HUNGARY 925.67 92.24 CI-INDON. FREE 6,675.20 142.04 CI-INDIA 1,059.68 -33.67 CI-JOEG & MA 1,222.06 -12.98 CI-KOREA 563.20 12.97 CI-KUWAIT 515.67 -55.84 CI-EM L.AMERICA 67,151.47 -945.56 CI-SRI LANKA 668.84 -32.41 CI-MOROCCO 298.90 -2.60 CI-EM E.EUROPE 255.21 -11.16 CI-EM FAR EAST 643.45 8.41 CI-EM ASIA 758.92 6.20 CI-EM EUROPE 4,653.89 -222.25 CI-MEXICO FREE 41,711.46 -452.16 CI-OMAN 732.52 -45.75 CI-PERU 2,107.68 -88.74 CI-AC PAC. 132.98 1.19 CI-PHILIPP.FREE 1,356.97 29.42 CI-PAKISTAN 121.62 -18.28 CI-POLAND 1,724.33 25.13 CI-QATAR 972.79 -59.87 CI-RUSSIA 766.25 -61.22 CI-THAILAND FREE 524.99 -8.11 CI-TURKEY 447.08 -33.03

Effective date: 13th April 2015

AGRO COMMODITIES 600 650 900

HIGH LOW 413.01 413.01 1,059.25 1,059.25 139.08 139.08 2,208.10 2,208.10 558.85 558.85 270.72 270.72 512.39 512.39 437.86 437.86 93.23 93.23 1,897.57 1,897.57 4,202.13 4,202.13 71.39 71.39 2,282.99 2,282.99 301.98 301.98 336.14 336.14 497.53 497.53 50,568.05 50,568.05 1,881.98 1,881.98 537.52 537.52 122.59 122.59 166.93 166.93 925.67 925.67 6,675.20 6,675.20 1,059.68 1,059.68 1,222.06 1,222.06 563.20 563.20 515.67 515.67 67,151.47 67,151.47 668.84 668.84 298.90 298.90 255.21 255.21 643.45 643.45 758.92 758.92 4,653.89 4,653.89 41,711.46 41,711.46 732.52 732.52 2,107.68 2,107.68 132.98 132.98 1,356.97 1,356.97 121.62 121.62 1,724.33 1,724.33 972.79 972.79 766.25 766.25 524.99 524.99 447.08 447.08

CLOSE 459.55 1,076.76 138.07 2,013.71 559.92 276.20 505.31 446.43 102.33 1,918.03 4,256.70 69.74 2,388.05 295.41 333.97 493.43 50,580.21 1,897.71 533.79 121.16 165.18 833.43 6,533.16 1,093.36 1,235.04 550.23 571.51 68,097.03 701.25 301.50 266.38 635.03 752.73 4,876.14 42,163.62 778.27 2,196.42 131.80 1,327.55 139.90 1,699.20 1,032.66 827.47 533.10 480.11

SUGAR NO5

USD

367.00

0.10

COFFEE

USD

173.00

-3.00

COCOA

USD

2809.00

10.00

RUBBER

JPY

198.00

0.00

FROZEN OJ CON1 USC

110.30

-2.35

COTTON NO2

65.20

0.07

USC

Unit Trusts

GRAINS

CURRENCY

DAILY YIELD EFFECTIVE ANNUAL RATE

OLD MUTUAL

7.29%

7.54%

BRITISH AMERICAN

10.65%

11.24%

CBA

9.03%

9.39%

UAP

10.75%

11.35%

ICEA

10.45%

11.02%

AMANA

10.58%

11.11%

GENCAP HELA

11.21%

11.69%

PAN AFRICA PESA+

10.94%

11.56%

FIXED INCOME FUND GENCAP HAZINA

CURRENCY

BUY

SELL

114.56

110.55

CORN

USC

371.00

0.50

NABO AFRICA

MAIZE EUR

EUR

155.75

1.25

BALANCED FUND

WHEAT

USC

500.75

-1.50

OLD MUTUAL / TOBOA

163.93

174.56

ROUGH RICE

USD

10.02

-0.08

BRITISH AMERICAN

195.10

200.80

BA MANAGED RETIREMENT

143.00

144.21

SOY BEANS

USC

951.50

2.75

AMANA

124.16

SOY BEAN OIL

USC

31.07

0.03

ICEA

144.03

151.61

CANOLA

CAD

454.00

-0.10

GENCAP ENEZA

132.59

127.95

PALM OIL

MYR

2264.00

-8.00

UAP

10.86

11.40

PAN AFRICA CHAMA+

10.52

10.85

OILSEEDS

NABO AFRICA

METALS & MINING

USD

EQUITY FUND

SYMBOL CURRENCY

LAST

NET CHG

OLD MUTUAL

412.66

442.16

USD

1188.50

-10.80

OLD MUTUAL EAST AFRICA FUND

161.21

170.61

SILVER

JPY

62.00

-2.00

AMANA

124.72

HG COPPER

USC

2.71

-0.03

BRITISH AMERICAN

213.56

220.34

PLATINUM

JPY

4416.00

-12.00

CBA

169.93

ALUMINIUM

CNY

13020.00

-145.00

ICEA

152.50

160.53

GENCAP HISA

138.56

133.71

UAP

10.83

11.38

100 OZ GOLD

OIL& GAS

NABO AFRICA

SYMBOL

CURRENCY

LIGHT CRUDE

USD

52.18

LAST

0.27

NET CHG

NO 2 HT OIL

USD

1.79

0.01

BRENT CRUDE

USD

57.95

0.02

GAS OIL

USD

545.25

2.50

NATURAL GAS

USD

2.52

0.01

KEROSINE

JPY

55110.00

-70.00

USD

BOND FUND OLD MUTUAL BOND FUND

100.32

102.70

BRITISH AMERICAN

138.16

140.98

ICEA

98.49

99.49

UAP

10.82

PAN AFRICA PATA+

10.26

10.58

118.15

112.25

SHARIAH COMPLIANT GENCAP IMAN

Wednesday April 15, 2015 | BUSINESS DAILY

MARKETDATA DATA MARKET

UK inflation ≥ate ≥emains at ≥eco≥d low of ze≥o in Ma≥ch The UK’s inflation rate remained at a record low of zero per cent in March, according to the Office for National Statistics. Cheaper clothing and footwear, offset by a rise in petrol prices, helped to maintain the rate at zero per cent for a second month, official figures show. The figure was the lowest rate of Consumer Prices Index (CPI) inflation since estimates of the measure began in the late 1980s. It means the cost of living is broadly the same as it was a year earlier. However, the ONS said that if the rate of inflation was calculated to two decimal places, prices were 0.01% lower than a year before - the first fall on record for the CPI measure. One of the main reasons the CPI rate remained broadly unchanged was rising petrol and diesel prices between February and March, the ONS said. But an overall fall in fuel prices over the past year has been a major contributor to low inflation, it added. The CPI figure leaves inflation well below the Bank of England’s two per cent target.

ACTIVE COUNTERS Scan Group

Williamson Tea 280.00 0.00%

Jul ‘14

Apr‘15 81.36 3.44 2.50%

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

Kakuzi Uchumi Kenya

44.25 -1.12%

Jul ‘14

Apr‘15 2.70 16.39 0.90%

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

EABL Eaagards

255.0018.80 Kenya Kenya 0.00% 2.17%

Kenya

Jul ‘14

Kenya

Apr‘15

244.00 34.75 7.49% 0.00%

Jul ‘14

Apr‘15

8.171.35 Earnings Earnings share perper share 13.93 31.21 Price to earnings ratio (p/e) Price to earnings ratio (p/e) 1.60% 1.47%

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

Dividend Yield Dividend Yield

Jubilee

Limuru Kenya

Jul ‘14

Apr‘15

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

CLonghorn &G Kenya

-0.28 -3400.00 0.11%

30.25 8.35 -3.20% 0.00%

Jul ‘14

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

BAT Airways Kenya Kenya Kenya

Apr‘15

Earningsper pershare share -1.30 8.82 Earnings Pricetotoearnings earningsratio ratio(p/e) (p/e) -26.73 27.66 Price DividendYield Yield 0.00% 2.25% Dividend

Unga 45.00 4.65%

569.00 5.37%

952.00 0.00%

Jul ‘14

per share 1.627.48 Earnings Earnings per share Price to earnings ratio (p/e) 5.154.04 Price to earnings ratio (p/e) Yield 2.64% Dividend Dividend Yield 23.95%

Apr‘15 48.00 11.85 1.49%

11.75 689.00 0.00% -5.75%

Jul ‘14

Apr‘15 3.65 12.33 1.67%

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

Mumias KPLC Kenya

Apr‘15

14.452.20 0.35% 2.33%

Jul ‘14

Apr‘15

-6.35 per share 42.55 Earnings Earnings per share -1.85 to earnings ratioratio (p/e)(p/e) to earnings 16.19 PricePrice 0.00% YieldYield Dividend 6.17% Dividend

2.23 -1.77 6.48 -1.24 0.00% 0.00%

Downward pressure There had been speculation that the CPI rate — as measured to one decimal place — would fall below zero in March, and there remains a possibility that the rate could fall in the coming months. However, few economists think the UK is at risk of the type of entrenched deflation that Japan has suffered from. “Inflation should start to pick up in the second half of the year, especially as the downward pressure from lower oil prices eases,” said Rain Newton-Smith, director of economics at the CBI business group. She added that falling prices had benefited households, and lower oil prices had been good for businesses in general. However, North Sea oil firms had taken a hit from the fall in the price of crude. Martin Beck, senior economic adviser to the EY ITEM Club, said he continued to expect the Bank of England “to wait until early 2016 before raising interest rates”. In March, inflation as measured by the Retail Prices Index (RPI) fell to 0.9 per cent from one per cent the previous month, the Office for National Statistics said. Like CPI, RPI inflation is calculated from a sample of retail goods and services. However, RPI is calculated differently and includes data such as mortgage repayments. - BBC

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

JSE All Share Index

Jul ‘14

Apr‘15

Jul ‘14

Apr‘15

Rwanda

Apr‘15

137.14 -0.04%

35,053.51 -0.39%

2,738.49 2.02%

Jul ‘14

RSE All Share

Nigeria

Tanzania

2,061.40 1.35%

53,374.13 -0.40%

NGSE All share

DSE All Share

Uganda

South Africa

Jul ‘14

Apr‘15

Jul ‘14

Apr‘15

World DJ Industrial

Xetra Dax 12,254.16 -0.69%

17,977.04 -0.45%

Jul ‘14

Apr‘15

Jul ‘14

Nikkei

HangSeng

Frankfurt

New York

Apr‘15

Mumbai 19,908.68 0.02%

27,561.49 -1.62%

Jul ‘14

Sensex

Tokyo

Hongkong

Jul ‘14

Apr‘15

29,044.44 0.57%

Jul ‘14

Apr‘15

BUSINESS DAILY | Wednesday April 15, 2015

MARKET DATA African Indices

Nairobi Stocks

NAME

NSE 20 Share Index

5,128.02 -0.16%

Nairobi 5,600.00

LOCATION

LAST

KENYA

5,128.02

-8.18

NSE 20 - SHR IDX LUSE ALL SHARE INDEX JSE ALL SHARE INDEX

ZAMBIA

6,107.56

SOUTH AFRICA

53,374.13

NET.CHNG

PCT.CHNG

OPEN

HIGH

LOW

-0.16%

5,136.20

3.95

0.06%

6,103.61

6,115.47

6,099.65

6,103.61

-215.18

-0.40%

53,403.98

53,656.23

53,313.52

53,589.31

5,500.00

ALSIUG

UGANDA

2,061.40

27.40

1.35%

2,034.00

5,400.00

ZSE INDUSTRIAL

ZIMBABWE

157.63

0.60

0.38%

157.03

5,300.00

CFG INDEX

MOROCCO

21,109.45

36.73

0.17%

21,115.21

21,109.45

21,072.72

5,200.00

MALAWI ALL SHR

MALAWI

15,508.65

0.00

0.00%

15,508.65

5,100.00

DSE ALL SHR IDX

TANZANIA

2,738.49

54.27

2.02%

2,684.22

5,000.00

NSE ALL SHARE/D

NIGERIA

35,053.51

-135.61

-0.39%

35,190.23

35,539.03

35,008.51

35,189.12

4,900.00

EGX 30 IDX/D

4,800.00

TUN MAIN INDEX July ‘14

March ‘15

170.78 0.28%

Nairobi

182.00 177.00 172.00 167.00 162.00 157.00 152.00 147.00 July ‘14

March ‘15

FTSE Pan African Index

1,237.32 0.00%

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

March ‘15

Active Active Counters Counters Last fri Price

Safaricom

16.10

KCB

64.50

Equity

47.75

Centum Invest.

60.00

Co-Op Bank

21.50

Prev fri Price

Total Shares

Change

16.00

Traded

0.63%

5,472,900

64.00

0.78%

2,560,300

48.00

-0.52%

1,865,600

60.00

0.00%

928,700

21.00

2.38%

817,300

Gainers Last fri

Prev fri Price

Net

Change

Chng

Counter

Price

Olympia

5.80

5.50

0.30

5.45%

Jubilee

569.00

540.00

29.00

5.37%

Pan Africa

126.00

120.00

6.00

5.00%

Unga

45.00

43.00

2.00

4.65%

NBK

23.75

22.75

1.00

4.40%

Losers Counter

Last ri Price

Crown Berger

106.00

117.00

-11.00

-9.40%

54.50

59.50

-5.00

-8.40%

689.00

731.00

-42.00

-5.75%

Umeme

17.95

19.00

-1.05

-5.53%

Sameer

5.25

5.50

-0.25

-4.55%

EAPC BAT Kenya

8,927.53

35.00

0.39%

8,898.94

8,945.33

8,898.94

8,892.53

5,406.25

17.21

0.32%

5,393.23

5,431.03

5,392.09

5,389.04

RWANDA

137.14

-0.05

-0.04%

137.19

Share Report

All Share Index (NASI)

Counter

RSE ALLSHARE IND

EGYPT TUNISIA

Prev fri Net price Change

MARKET UPDATES

% Chng

52 WK HIGH

52 WK LOW

AGRICULTURAL 100.00 26.00 EAAGADS 346.00 110.00 KAKUZI 180.00 120.00 KAPCHORUA TEA 1185.00 620.00 LIMURU TEA 27.50 27.50 REA VIPINGO 18.50 11.50 SASINI 319.00 240.00 WILLIAMSON TEA AUTOMOBILES & ACCESSORIES 62.00 31.00 CAR & GEN 13.60 8.00 MARSHALLS 9.40 5.20 SAMEER BANKING 18.45 15.05 BARCLAYS 155.00 104.00 CFC STANBIC 280.00 216.00 DTBK 63.00 31.00 EQUITY 55.00 33.25 HF 147.00 120.00 I&M HOLDINGS 65.50 42.25 KCB 34.00 22.25 NBK 85.00 55.00 NIC BANK 357.00 290.00 STAN. CHART. 25.00 17.10 CO-OP BANK COMMERCIAL 8.50 4.15 EXPRESS (K) 20.25 20.25 HUTCHINGS BIEMER 13.50 7.35 KQ 30.75 7.90 LONGHORN PUBLISHERS 325.00 225.00 NATION MEDIA 247.00 40.00 SCANGROUP 47.50 26.25 STANDARD GRP 49.50 32.00 TPS EA 15.60 8.00 UCHUMI CONSTRUCTION & ALLIED 95.00 72.00 ARM CEMENT LTD 206.00 135.00 BAMBURI 165.00 83.00 CROWN BERGER 17.00 13.50 EA CABLES 110.00 51.00 EAPC ENERGY & PETROLEUM 13.15 8.70 KENGEN 10.50 7.90 KENOLKOBIL 18.50 12.85 KENYA POWER 32.00 22.00 TOTAL 23.00 13.00 UMEME INSURANCE 40.00 16.40 BRITISH AMERICAN 12.40 7.50 CIC INSURANCE 599.00 301.00 JUBILEE 21.00 16.00 KENYA RE 26.00 15.10 LIBERTY KENYA 142.00 101.00 PAN AFRICA INVESTMENT 84.50 35.00 CENTUM INVEST. 10.85 2.50 OLYMPIA 30.00 17.00 TRANSCENTURY INVESTMENT SERVICES NAIROBI SECURITIES EXCHG 28.00 15.00 MANUFACTURING & ALLIED 11.10 11.10 A. BAUMANN 165.00 123.00 BOC GASES 1050.00 521.00 BAT KENYA 37.00 19.60 CARBACID 355.00 250.00 EABL 5.35 2.65 EVEREADY EA 192.00 4.40 K. ORCHARDS 3.85 1.35 MUMIAS 56.50 22.00 UNGA TELECOMMUNICATION & TECHNOLOGY SAFARICOM 17.50 11.75 GROWTH AND ENTERPRISE MARKET SEGMENT ATLAS DEV & SUP S LTD 13.75 11.00 8.00 FLAME TREE GROUP HOLDINGS 14.00 5.80 3.00 HOME AFRICA 1500.00 KURWITU VENTURES LTD 1500.00

YTD %

VWA LAST PRICE

VWA PREV PRICE

DAILY PRICE CHANGE

DAILY TRADED SHARES

SHARES ISSUED

MKT CAP. KSHS

EPS LATEST 12MNTH

P/E TRAILING

PBV TRAILING

DPS LATEST 12MNTH

TOTAL DIVIDEND YIELD

-17.26% 55.56% -5.11% 23.48% 0.00% 32.68% 12.90%

34.75 255.00 130.00 952.00 27.50 17.00 280.00

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

100 44,600 -

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

1,117,455,750.0 4,997,999,745.0 508,560,000.0 1,142,400,000.0 1,650,000,000.0 3,876,943,500.0 2,451,769,600.0

-1.30 8.17 32.21 -0.28 5.85 0.54 81.36

-26.73 31.21 4.04 -3400.00 4.70 31.48 3.44

2.78 1.72 0.37 4.64 0.74 0.61 0.39

0.00 3.75 5.00 1.00 0.00 0.25 7.00

0.00% 1.47% 3.85% 0.11% 0.00% 1.47% 2.50%

-7.87% 21.43% -8.33%

45.00 11.90 5.25

45.00 11.90 5.50

0.00% 0.00% -4.55%

1,500 1,100

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

1,804,648,860.0 171,277,961.4 1,461,297,563.3

6.57 -11.90 -0.24

6.85 -1.00 -21.88

0.86 0.44 0.63

0.60 0.00 0.00

1.33% 0.00% 0.00%

-4.19% 0.81% -1.70% -3.50% -22.95% -0.81% 10.53% -5.05% -0.87% 2.09% 6.25%

15.95 126.00 230.00 47.75 34.75 123.00 64.50 23.75 57.00 342.00 21.50

15.95 126.00 230.00 48.00 35.00 120.00 64.00 22.75 56.50 341.00 21.00

0.00% 0.00% 0.00% -0.52% -0.71% 2.50% 0.78% 4.40% 0.88% 0.29% 2.38%

303,800 113,200 100 1,865,600 200,700 84,400 2,560,300 68,700 39,200 2,900 817,300

5,431,536,000 395,321,638 242,110,105 3,702,777,020 235,750,000 392,362,039 2,984,227,692 280,000,000 639,945,603 309,159,514 4,889,316,295

86,632,999,200.0 49,810,526,388.0 55,685,324,150.0 176,807,602,705.0 8,192,312,500.0 48,260,530,797.0 192,482,686,134.0 6,650,000,000.0 36,476,899,371.0 105,732,553,788.0 105,120,300,342.5

1.54 14.38 21.92 4.55 4.21 13.56 5.63 3.11 7.07 33.21 1.64

10.36 8.76 10.49 10.49 8.25 9.07 11.46 7.64 8.06 10.30 13.11

2.68 2.16 2.42 3.43 1.34 2.20 3.01 0.54 1.76 2.92 2.45

1.00 6.15 2.40 1.80 1.50 2.90 2.00 0.00 1.00 17.00 0.50

6.27% 4.88% 1.04% 3.77% 4.32% 2.36% 3.10% 0.00% 1.75% 4.97% 2.33%

-8.06% 0.00% -13.22% -10.27% -9.89% -1.66% 2.88% -8.11% 4.48%

5.70 20.25 7.50 8.35 235.00 44.25 34.00 33.75 10.45

5.70 20.25 7.50 8.35 237.00 44.75 34.00 33.75 10.45

0.00% 0.00% 0.00% 0.00% -0.84% -1.12% 0.00% 0.00% 0.00%

3,100 254,300 25,900 2,400 75,700 7,500 206,300

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

201,801,603.0 7,290,000.0 11,223,517,762.5 2,035,312,500.0 44,307,437,210.0 16,764,780,763.5 2,778,881,472.0 6,148,376,145.0 3,813,827,987.2

0.01 -18.34 -2.25 1.62 13.10 2.70 2.57 3.45 1.45

570.00 -1.10 -3.33 5.15 17.94 16.39 13.23 9.78 7.21

1.02 #DIV/0! 3.59 1.13 5.42 2.05 1.53 0.56 0.95

0.00 0.00 0.00 2.00 10.00 0.40 0.50 1.35 0.30

0.00% 0.00% 0.00% 23.95% 4.26% 0.90% 1.47% 4.00% 2.87%

-9.30% 11.51% 5.41% -2.78% 2.59%

76.50 154.00 106.00 15.55 54.50

77.50 155.00 117.00 15.75 59.50

-1.29% -0.65% -9.40% -1.27% -8.40%

807,500 188,000 7,100 3,200 1,000

495,275,000 37,888,537,500.0 362,959,275 55,895,728,350.0 23,727,000 2,515,062,000.0 253,125,000 3,936,093,750.0 90,000,000 4,905,000,000.0

3.01 9.80 9.01 1.37 -4.30

25.42 15.71 11.76 11.35 -12.67

4.66 1.93 1.85 1.63 1.01

0.60 12.00 1.75 1.00 0.00

0.78% 7.79% 1.65% 6.43% 0.00%

-2.43% 1.15% 17.99% -1.04% -9.52%

10.05 8.85 17.05 24.00 17.95

10.00 8.75 17.00 24.00 19.00

0.50% 1.14% 0.29% 0.00% -5.53%

180,500 93,100 230,200 6,100 3,800

2,198,361,456 22,093,532,632.8 1,471,761,200 13,025,086,620.0 1,951,467,045 33,272,513,117.3 175,028,706 4,200,688,944.0 1,623,878,005 29,148,610,189.8

1.29 0.74 3.31 2.26 1.34

7.79 11.96 5.15 10.62 13.36

0.32 1.95 0.76 0.82 3.18

0.40 0.20 0.50 0.70 0.90

3.98% 2.26% 2.93% 2.92% 5.03%

-14.29% -2.08% 15.56% 8.50% 6.45% 3.33%

25.50 9.20 569.00 18.40 23.50 126.00

25.50 9.35 540.00 18.25 23.00 120.00

0.00% -1.60% 5.37% 0.82% 2.17% 5.00%

231,000 203,700 74,500 249,600 164,200 3,300

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

49,429,603,869.0 24,062,954,457.6 34,080,255,000.0 12,879,062,851.2 12,589,126,226.5 12,096,000,000.0

1.47 0.43 48.00 4.48 2.14 9.07

17.35 21.40 11.85 4.11 10.98 13.89

2.85 2.98 3.19 0.72 2.38 3.62

0.30 0.10 8.50 0.70 0.50 0.00

1.18% 1.09% 1.49% 3.80% 2.13% 0.00%

-4.10% 9.62% -12.14%

60.00 5.80 17.00

60.00 5.50 17.40

0.00% 5.45% -2.30%

928,700 1,000 1,700

665,441,775 39,926,506,500.0 40,000,000 232,000,000.0 280,284,476 4,764,836,092.0

4.54 0.38 1.06

13.22 15.26 16.04

1.97 0.29 0.90

0.00 0.00 0.40

0.00% 0.00% 2.35%

19.60

0.00%

142,700

194,625,000

3,814,650,000.0

2.13

9.20

5.23

0.38

1.94%

0.00% 8.00% -20.70% -4.60% 5.52% 5.41% 1.82% 17.95% 6.92%

11.10 135.00 689.00 21.25 337.00 3.95 110.00 2.20 45.00

11.10 136.00 731.00 21.25 333.00 3.85 112.00 2.15 43.00

0.00% -0.74% -5.75% 0.00% 1.20% 2.60% -1.79% 2.33% 4.65%

65,000 9,500 28,700 128,300 11,500 500 467,900 700

3,840,066 42,624,732.6 19,525,446 2,635,935,210.0 100,000,000 68,900,000,000.0 254,851,988 5,415,604,745.0 790,774,356 266,490,957,972.0 210,000,000 829,500,000.0 12,868,124 1,415,493,640.0 1,530,000,000 3,366,000,000.0 75,708,873 3,406,899,285.0

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

-5.50 11.48 16.19 11.01 41.05 -4.65 733.33 -1.24 12.33

#VALUE! 1.81 9.10 3.27 9.76 2.56 578.95 0.32 0.73

0.00 5.20 42.50 0.30 5.50 0.00 0.00 0.00 0.75

0.00% 3.85% 6.17% 1.41% 1.63% 0.00% 0.00% 0.00% 1.67%

13.17%

16.10

16.00

0.63%

5,472,900

40,065,428,000 645,053,390,800.0

0.57

28.25

8.05

0.47

2.92%

-19.51% -

11.00 9.40 3.10 1500.00

11.35 9.40 3.15 1500.00

-3.08% 0.00% -1.59% 0.00%

45,600 6,600 590,300 -

-0.04 0.92 0.05 -62.40

-275.00 10.22 62.00 -24.04

0.00 0.92 0.00 0.00

0.00% 9.80% 0.00% 0.00%

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

4,763,695,123.0 1,521,547,957.6 1,256,291,492.0 153,408,000.0

#DIV/0!

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

Wednesday April 15, 2015 | BUSINESS DAILY

MARKET DATA

MARKET DATA Equities & Bonds Kenya Treasury and Infrastructure Bonds

Share Price Performance Scorecard SCORECARD AS AT 14TH APRIL 2015 NAME A BAUMANN ATLAS DEVPNT & SPPRT SERV ATHI RIVER MINING BAMBURI BARCLAYS KEN BAT KENYA BOC KENYA BRITISH AMERICAN CAR & GENERAL CARBACID INV CENTUM INV CFC STANBIC BANK CIC INSURANCE CO-OP BANK CROWN BERGER DIAMOND KEN EA CABLES EA PORT CEM EAAGADS EA AFR BREW EQUITY BANK EVEREADY EA EXPRESS KEN FLAME TREE HLDNGS G WILLIAMSON HUTCHINGS BIEMER HOME AFRICA LIMITED HOUSING FIN I&M HOLDING JUBILEE HLDS KAKUZI KAPCHORUA KEN ORCHARDS KENGEN KENYA AIRWAYS KENYA COM BK KENOLKOBIL KENYA POWER KENYA RE KURWITU LIBERTY HOLDINGS LIMURU TEA LONGHORN MARSHALL MUMIAS SUGAR NAIROBI SECURITIES NATION MEDIA NATL BANK KEN NIC BANK OLYMPIA CAPITAL PAN AFR INS REA VIPINGO SAFARICOM SAMEER AFRICA SASINI SCANGROUP STANDARD GRP STD CHART KEN TOTAL KENYA TPS (EA) TRANSCENTURY UCHUMI SUPER UNGA GROUP

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE PREVIOUS 11.10 11.35 77.50 155.00 15.95 731.00 136.00 25.50 45.00 21.25 60.00 126.00 9.35 21.00 117.00 230.00 15.75 59.50 34.75 333.00 48.00 3.85 5.70 9.40 280.00 20.25 3.15 35.00 120.00 540.00 255.00 130.00 112.00 10.00 7.50 64.00 8.75 17.00 18.25 1500.00 23.00 952.00 8.35 11.90 2.15 19.60 237.00 22.75 56.50 5.50 120.00 27.50 16.00 5.50 17.00 44.75 34.00 341.00 24.00 33.75 17.40 10.45 43.00

CLOSE 11.10 11.00 76.50 154.00 15.95 689.00 135.00 25.50 45.00 21.25 60.00 126.00 9.20 21.50 106.00 230.00 15.55 54.50 34.75 337.00 47.75 3.95 5.70 9.40 280.00 20.25 3.10 34.75 123.00 569.00 255.00 130.00 110.00 10.05 7.50 64.50 8.85 17.05 18.40 1500.00 23.50 952.00 8.35 11.90 2.20 19.60 235.00 23.75 57.00 5.80 126.00 27.50 16.10 5.25 17.00 44.25 34.00 342.00 24.00 33.75 17.00 10.45 45.00

% 1D 0.00 -3.08 -1.29 -0.65 0.00 -5.75 -0.74 0.00 0.00 0.00 0.00 0.00 -1.60 2.38 -9.40 0.00 -1.27 -8.40 0.00 1.20 -0.52 2.60 0.00 0.00 0.00 0.00 -1.59 -0.71 2.50 5.37 0.00 0.00 -1.79 0.50 0.00 0.78 1.14 0.29 0.82 0.00 2.17 0.00 0.00 0.00 2.33 0.00 -0.84 4.40 0.88 5.45 5.00 0.00 0.63 -4.55 0.00 -1.12 0.00 0.29 0.00 0.00 -2.30 0.00 4.65

% 5D 0.00 -3.51 -2.55 -3.14 -3.04 -13.77 1.50 -1.92 -9.09 2.41 -0.83 0.00 -3.16 2.38 -10.92 -1.71 0.32 -7.63 2.96 4.01 -3.54 1.28 1.79 -0.53 0.00 0.00 -8.82 -6.71 -3.15 -0.18 -8.93 0.00 -1.79 -7.80 -3.23 5.74 -2.21 -2.01 -1.08 0.00 -6.00 -15.30 -2.34 -0.83 0.00 -0.25 -2.08 1.06 -0.87 2.65 -1.56 0.00 1.26 -8.70 20.14 -5.35 2.26 1.79 -7.69 -0.74 -6.08 -0.48 3.45

% 1M 0.00 -4.35 -10.00 -5.52 -6.45 -17.09 -8.78 -6.42 -15.09 -1.16 1.69 1.61 -2.13 7.50 -13.82 -4.96 -0.64 -9.17 -6.71 10.86 -8.17 -4.82 -5.00 1.08 -1.41 0.00 0.00 -10.32 -0.81 3.83 -11.76 -7.80 -4.35 -9.46 -19.35 8.40 -11.94 -6.83 -1.08 0.00 -5.05 -15.30 -7.22 -2.46 -16.98 0.26 -5.24 -4.04 -8.06 -3.33 -5.26 0.00 1.90 -15.32 8.97 -6.84 -16.56 -3.66 -12.73 2.27 -4.23 7.18 -3.74

% 3M 0.00 -10.20 -6.13 0.00 -0.62 -23.44 -2.17 -11.30 -10.00 -4.49 -13.04 0.80 -2.65 12.86 -9.40 -3.36 -0.96 -0.91 -10.90 10.49 -5.45 6.76 -4.20 10.59 -0.36 0.00 -23.46 -23.20 -0.81 25.61 27.50 -13.33 0.00 3.61 -19.35 9.32 -2.21 12.54 5.14 0.00 2.17 23.48 -16.92 6.25 -18.52 -5.54 -14.23 -9.52 -11.63 -4.92 7.69 0.00 8.42 -17.32 31.78 -5.35 -4.23 1.48 -8.57 -7.53 -5.82 -2.34 9.76

% 6M 0.00 -11.56 -3.14 -6.73 -27.47 -15.09 -13.56 -2.17 -19.05 0.00 0.00 -15.60 -1.15 -10.92 -11.20 0.65 -23.24 -18.71 22.10 -2.05 -1.25 -30.06 -11.11 0.00 0.00 -24.04 -8.89 34.83 21.43 -13.33 -17.29 -15.55 -16.20 11.21 -9.69 12.91 1.38 5.62 8.39 -60.71 13.33 12.82 -12.89 -24.19 -12.04 -18.57 103.51 -0.79 0.00 27.27 -22.79 15.65 -2.75 -1.45 0.59 -12.73 -6.90 0.00 5.56 -2.70

% 1Y 0.00 -10.00 -20.62 -1.54 20.88 -4.26 41.67 40.63 -37.04 55.84 15.60 0.00 7.50 25.44 0.88 0.97 -45.50 24.11 27.65 46.92 23.44 16.33 8.11 0.00 0.00 -3.47 0.00 87.17 112.50 -7.14 2100.00 -14.83 -41.86 35.79 -8.76 14.43 -3.41 32.39 53.55 -37.69 8.18 -32.31 -24.68 -16.67 -7.32 34.88 -0.79 0.00 25.29 -23.91 -0.29 -4.32 22.52 7.89 -2.04 -20.12 0.00 -27.68 89.47

ISSUE DATE

APRIL 14 2015

MATURITY ISSUED VALUE COUPON DATE

IN MILLIONS

(%)

TRADED YIELD

ISSUE NO.

PREVIOUS PRICE (%)

TOTAL VALUE TRADED (KSHS)

TWO YEAR BONDS FXD 3/2013/2YR

26-AUG-13

24-AUG-15 17,927.40

12.9390

FXD 4/2013/2YR

24-DEC-13

21-DEC-15 25,251.00

11.5530

FXD 1/2014/2YR

24-MAR-14

21-MAR-16 20,000.00

10.8030

FXD 2/2014/2YR

26-MAY-14

23-MAY-16 20,130.15

10.7930

100.1729

FXD 3/2014/2YR

22-DEC-14

19-DEC-16 8,905.12

10.8900

100.2546

FXD 1/2015/2YR

23-JAN-15

20-FEB-17 23,592.55

11.4700

100.9404

FXD 1/2010/5YR

24-MAY-10

18-MAY-15 11,924.85

6.9510

98.9033

FXD 2/2010/5YR

30-NOV-10

23-NOV-15 14,973.10

6.6710

97.2455

FXD 1/2011/5YR

31-JAN-11

25-JAN-16 22,083.10

7.6360

97.0450

FXD 1/2012/5YR

28-MAY-12

22-MAY-17 31,079.55

11.8550

98.5816

FXD 1/2013/5YR

29-APR-13

23-APR-18 20,240.75

12.8920

103.2560

FXD 2/2013/5YR

1-JUL-13

25-JUN-18 26,340.05

11.3050

100.3825

FXD 3/2013/5YR

25-NOV-13

19-NOV-18 14,937.80

11.9520

101.6262

FXD 1/2014/ 5YR

28-APR-14

22-APR-19 25,540.95

10.8700

97.8865

FXD 2/2014/ 5YR

23-JUN-14

17-JUN-19

16,418.25

11.9340

101.3943

24-APR-06

13-APR-15 3,060.25

13.5000

102.2668

FXD 1/2006/10YR

27-MAR-06

14-MAR-16 3,451.05

14.0000

102.1563

FXD 2/2006/10YR

29-MAY-06

16-MAY-16 5,028.10

14.0000

103.9277

FXD 1/2007/10YR

29-OCT-07

16-OCT-17 9,308.80

10.7500

99.3880

FXD 1/2008/10YR

29-OCT-07

16-OCT-17 2,992.75

10.7500

FXD 2/2008/10YR

28-JUL-08

16-JUL-18

10.7500

FXD 3/2008/10YR

29-SEP-08

28-SEP-18 4,151.60

FXD 1/2009/10YR

27-SEP-09

FXD 1/2010/10YR

26-APR-10

FXD 2/2010/10YR

101.1994 10.9465

100.6508

54,000,000

100.2806

FIVE YEAR BONDS

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

13,504.70

95.8019 11.6642

100.4667

10.7500

94.9482

15-APR-19 4,966.85

10.7500

96.1897

13-APR-20 19,394.15

8.7900

86.1135

1-NOV-10

19-OCT-20 18,849.90

9.3070

91.4516

FXD 1/2012/10YR

25-JUN-12

13-JUN-22 16,803.75

12.7050

102.1640

FXD 1/2013/10YR

1-JUL-13

19-JUN-23 12,643.05

12.3710

100.5707

FXD 1/2014/10YR

27-JAN-14

15-JAN-24 30,520.25

12.1800

99.8509

25-SEP-06

11-SEP-17

4,031.40

13.7500

97.6357

64,000,000

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

28-AUG-06

13-AUG-18 3,900.95

14.0000

105.2139

FXD1/2007/12YR

28-MAY-07

13-MAY-19 4,864.60

13.0000

104.9016

FXD1/2007/15YR

26-MAR-07

7-MAR-22 3,654.60

14.5000

109.0397

FXD2/2007/15YR

25-JUN-07

6-JUN-22

7,236.95

13.5000

108.2496

FXD3/2007/15YR

26-NOV-07

7-NOV-22

17,568.00

12.5000

99.9310

FXD1/2008/15YR

31-MAR-08

13-MAR-23 7,830.90

12.5000

100.6070

FXD1/2009/15YR

26-OCT-09

7-OCT-24

12.5000

FXD1/2010/15YR

29-MAR-10

10-MAR-25 20,823.73

10.2500

FXD2/2010/15YR

25-APR-11

8-DEC-25

13,513.10

9.0000

FIFTEEN YEAR BONDS

Corporate Bonds APRIL 14, 2015

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

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

PREVIOUS PRICE

2,917.10 1,250.80

13.5000 12.7500

105.2550 99.9620

1,480.60 196.50 1.00

13.2500 13.6000

99.1677 100.0000

500.00 4,239.70 760.30

12.7500 12.7500

1,300 700

11.5000

100.7057 100.0000 99.4819 85.5534

13.0000

100.0000 100.0000

97.91 2,402.09

12.5000

100.0000 100.0000

15,625

12.5000

100.0150

2,969.10 1,166.50 5,864.40 3,429.00 226.00 6,000.00

9,420.45

102.7808 12.5500

87.3761

100,000,000

81.9916

FXD1/2012/15YR

24-SEP-12

6-SEP-27

21,089.45

11.0000

FXD1/2013/15YR

25-FEB-13

7-FEB-28

40,886.33

11.2500

90.8891

FXD2/2013/15YR

29-APR-13

10-APR-28 17,385.85

12.0000

95.5914

FXD1/2008/20YR

30-JUN-08

5-JUN-28

20,360.95

13.7500

112.6478

FXD1/2011/20YR

30-MAY-11

5-MAY-31

9,365.80

10.0000

FXD1/2012/20YR

26-NOV-12

1-NOV-32

43,082.72

12.0000

13.1250

92.1484

200,000,000

FXD1/2012/20YR

26-NOV-12

1-NOV-32

43,082.72

12.0000

13.0500

92.1484

130,000,000

28-JUN-10

28-MAY-35 20,192.50

11.2500

91.8177

28-FEB-11

21-JAN-41 23,888.95

12.0000

91.0563

12.6526

91.7296

92,200,000

TWENTY YEAR BOND

621.50 1,378.50

200.00 4,287.00

TOTAL VALUE TRADED (KSHS)

TWENTY FIVE YEAR BOND FXD1/2010/25YR THIRTY YEAR BOND

8.0000

93.8370 103.0000

SDB 1/2011/30YR

13.0000

100.0000

INFRASTRUCTURE BONDS

8.5000

100

12.8000 13.0000

100.0000 100.0000

79.8372

400,000

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

98.2874

IFB 2/2010/9YR

31-AUG-10

19-SEP-19 32,871.55

6.0000

IFB 1/2011/12YR

3-OCT-11

18-SEP-23 43,447.35

12.0000

IFB 1/2013/12YR

30-SEP-13

15-SEP-25 38,841.68

11.0000

88.4106 11.0935

101.7889

65,100,000

2,000.00

13.0000

99.9807

5,514.50

12.5000

100.0000

IFB 1/2014/12YR

27-OCT-14

12-OCT-26 35,060.55

11.0000

5,000.00

13.0000

100.0000

IFB 1/2015/12YR

30-MAR-15

15-MAR-27 25,695.35

11.0000

11.4300

97.3920

5,080.00

12.9500

100.0000

IFB 1/2015/12YR

30-MAR-15

15-MAR-27 25,695.35

11.0000

11.5000

97.3920

145,000,000

IFB 1/2015/12YR

30-MAR-15

15-MAR-27 25,695.35

11.0000

11.4750

97.3920

100,000,000

7,000.00

12.7500

100.0000

9,047.35

12.2500

100.2003

99.0986 98.4647 600,000,000

BUSINESS DAILY | Wednesday April 15, 2015

MARKET DATA Global Markets & Currencies Currencies Kenya Shilling CURRENCY BUY 93.16 US DOLLAR 136.64 STG POUND 98.25 EURO 7.67 SA RAND 31.96 KES / USHS 19.77 KES / TSHS 7.34 KES / RWF 16.71 KES / BIF 25.36 AE DIRHAM 74.02 CAN $ 95.25 S FRANC 77.76 JPY (100) 10.54 SW KRONER 11.48 NOR KRONER 13.15 DAN KRONER 1.49 IND RUPEE 12.02 HONGKONG DOLLAR 68.31 SINGAPORE DOLLAR 24.84 SAUDI RIYAL 14.99 CHINESE YUAN 70.65 AUSTRALIAN $

SELL 93.33 136.94 98.46 7.69 32.13 19.91 7.44 16.96 25.41 74.19 95.49 77.93 10.57 11.51 13.18 1.50 12.04 68.49 24.89 15.02 70.84

MEAN 93.25 136.79 98.36 7.68 32.04 19.84 7.39 16.84 25.39 74.11 95.37 77.84 10.55 11.49 13.16 1.49 12.03 68.40 24.86 15.01 70.75

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

FTSE 100

Europe’s Blue Chips

BID 1.06 119.69 1.46 0.98 0.76 1.26 8.83 8.03 1.83 7.07 51.78 2.68 138.43 62.35 3.80 25.89 280.69 22.60 3.99 132.80 1.85 59.99 0.40 11.70 2.23 1.47 7.17 185.82 2.85 0.51 17.80 58.03 3.41 4.18 21.55 113.40 472.00 3.67 108.52 1,532.20 0.10 913.00 102.77 6.21 177.00 98.58 7.63 20.36 3.81 42.60 15.00 6,780.00 685.00 93.20 457.00 84.00 12.12 1.37 10.08 3,050.00 311.00 445.24 35.25 198.99 13.05 200.02 2,025.50 1.54 4,350.00 22,507.00 705.00 12.13 32.47 1.99 1,865.00 3,005.00 621.23 621.29 36.30 12.14 378.00

ASK 1.06 119.70 1.46 0.98 0.76 1.26 8.84 8.04 1.88 7.07 51.85 2.68 138.74 62.37 3.80 25.91 280.94 23.00 3.99 133.07 1.85 60.19 0.40 11.71 2.25 1.47 7.18 185.85 2.85 0.51 18.05 58.62 3.42 4.18 21.60 113.60 475.00 3.67 109.52 1,582.20 0.10 943.00 104.27 6.21 178.00 99.06 7.63 20.57 3.85 43.60 15.50 7,280.00 696.00 93.40 458.00 85.00 12.17 1.37 10.09 3,175.00 319.00 476.29 36.75 199.09 14.00 201.02 2,035.60 1.54 4,400.00 23,908.00 712.00 12.17 32.49 1.99 1,875.00 3,015.00 628.23 627.29 36.40 12.14 381.00

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

CURRENCY COMPANY

COUNTRY

INDUSTRY

LAST

CHG % CHG

ING GROEP

NETHERLANDS

BANKS

14.27

0.13

0.88

1-WK

YTD

52-WK

0.88

31.7

44.46

BG GRP

UNITED KINGDOM

INTEGRATED OIL&GAS

1177

0.77

36.1

5.7

BNP PARIBAS

FRANCE

BANKS

57.62

0.37

0.65

4.73

DEUTSCHE TELEKOM

GERMANY

MOBILE TELECOMMUNICATIONS

17.6

0.11

0.63

32.8

58.36

ROYAL DUTCH SHELL A

UNITED KINGDOM

INTEGRATED OIL&GAS

2038.5

0.59

-5.3

-7.11

ENI

ITALY

INTEGRATED OIL&GAS

17.11

0.09

0.53

17.9

-5.68

TOTAL

FRANCE

INTEGRATED OIL&GAS

48.76

0.24

0.49

14.7

2.17

ANHEUSER-BUSCH INBEV

BELGIUM

BREWERS

118.5

0.45

0.38

26.3

55.59

DEUTSCHE BANK

GERMANY

BANKS

33.2

0.1

0.32

32.9

5.53

BT GROUP PLC

UNITED KINGDOM

FIXED LINE TELECOMMUNICATIONS

456

1.35

0.3

13.6

27.37

ABB

SWITZERLAND

INDUSTRIAL MACHINERY

21.14

0.06

0.28

UNCH.

-6.04

SANOFI SA

FRANCE

PHARMACEUTICALS

98.98

0.23

30.8

33.06

SIEMENS

GERMANY

DIVERSIFIED INDUSTRIALS

103.65

0.2

0.19

10.6

7.38

LLOYDS BANKING GROUP PLC

UNITED KINGDOM

BANKS

79.4

0.1

0.13

4.7

8.81

SAP

GERMANY

SOFTWARE

69.13

0.08

0.12

18.7

21.37

DIAGEO

UNITED KINGDOM

DISTILLERS&VINTNERS

1940.5

0.1

3.63

LVMH MOET HENNESSY

FRANCE

CLOTHING&ACCESSORIES

172.55

0.15

0.09

30.5

35.6

VODAFONE GROUP

UNITED KINGDOM

MOBILE TELECOMMUNICATIONS

229.2

-0.1

-0.04

2.9

7.2

ALLIANZ SE

GERMANY

FULL LINE INSURANCE

169.5

-0.2

-0.12

23.4

41.84

ROCHE HOLDING PART. CERT.

SWITZERLAND

PHARMACEUTICALS

277.9

-0.4

-0.14

10.85

AXA

FRANCE

FULL LINE INSURANCE

24.42

-0.06

-0.25

27.1

34.63

CREDIT SUISSE GROUP AG

SWITZERLAND

BANKS

27.05

-0.07

-0.26

7.9

-3.53

-1.25

-0.26

14.6

-0.94

-3

-0.27

14.8

-16.31

BP PLC

UNITED KINGDOM

INTEGRATED OIL&GAS

471

STANDARD CHARTERED

UNITED KINGDOM

BANKS

1106

L’AIR LIQUIDE

FRANCE

COMMODITY CHEMICALS

122.25

-0.35

-0.29

18.9

25.27

UNILEVER CVA

NETHERLANDS

FOOD PRODUCTS

40.78

-0.13

-0.31

24.9

33.73

UBS GROUP

SWITZERLAND

BANKS

18.96

-0.08

-0.42

10.9

7.42

NESTLE

SWITZERLAND

FOOD PRODUCTS

75.55

-0.35

-0.46

3.6

11.68

SCHNEIDER ELECTRIC SE

FRANCE

ELECTRICAL COMPONENTS&EQUIPMENT

73.28

-0.34

-0.46

20.9

14.11

GLAXOSMITHKLINE

UNITED KINGDOM

PHARMACEUTICALS

1634

-8

-0.49

18.8

5.28

NATIONAL GRID

UNITED KINGDOM

MULTIUTILITIES

902.7

-4.8

-0.53

-1.7

11.51

DAIMLER

GERMANY

AUTOMOBILES

88.17

-0.48

-0.54

27.8

33.29

RECKITT BENCKISER GRP

UNITED KINGDOM

NONDURABLE HOUSEHOLD PRODUCTS

6082

-34

-0.56

16.7

28.47

FINANCIERE RICHEMONT

SWITZERLAND

CLOTHING&ACCESSORIES

83.95

-0.5

-0.59

-5.5

-2.72

BAYER

GERMANY

SPECIALTY CHEMICALS

145.2

-1

-0.68

28.5

56.45

ASTRAZENECA

UNITED KINGDOM

PHARMACEUTICALS

4718.5

-34.5

-0.73

3.6

24.81

UNILEVER

UNITED KINGDOM

FOOD PRODUCTS

2913

-22

-0.75

10.8

10.55

NOVARTIS AG

SWITZERLAND

PHARMACEUTICALS

100.6

-0.8

-0.79

8.9

RIO TINTO

UNITED KINGDOM

GENERAL MINING

2814

-23

-0.81

-6.2

-15.51

BASF

GERMANY

COMMODITY CHEMICALS

95.89

-0.83

-0.86

37.2

23.54

Global Indices NAME

LOCATION

DJ INDU AVERAGE

NEW YORK

FTSE EUROTOP 100

LONDON

XETRA DAX PF/D

FRANKFURT

CAC 40 INDEX/D

LAST

NET.CHNGPCT.CHNG

17,977.04

-80.61

-0.45%

OPEN

HIGH

LOW

18,052.32

18,107.57

17,974.81

18,057.65

3,289.77

-13.46

-0.41%

3,310.02

3,310.27

3,283.17

3,303.23

12,254.16

-84.57

-0.69%

12,306.36

12,339.81

12,231.63

12,338.73

PARIS

5,217.39

-36.73

-0.70%

5,252.48

5,260.78

5,214.00

5,254.12

FTSE MIB/D

MILAN

23,731.43

-277.48

-1.16%

23,974.58

24,024.23

SMI PR/D

SWITZERLAND

9,407.27

-22.98

-0.24%

9,426.13

9,439.22

9,396.26

HANG SENG INDE/D

HONG KONG

27,561.49

-454.85

-1.62%

27,688.26

27,915.01

27,483.45 28,016.34 19,828.65 19,905.46

NIKKEI 225 INDEX

TOKYO

19,908.68

3.22

0.02%

19,828.65

19,922.50

ALL ORDINARIES

AUSTRALIA

5,916.24

-11.82

-0.20%

5,928.10

23,676.78 24,008.91 9,430.25

5,898.60

5,928.06

STRAITS TIMES/D

SINGAPORE

3,521.08

36.69

1.05%

3,484.09

3,526.29

3,481.23

3,484.39

SSE COMPOSITE/D

SHANGHAI

4,135.92

14.20

0.34%

4,125.78

4,168.35

4,091.26

4,121.71

S&P SENSEX/D

MUMBAI

29,044.44

165.06

0.57%

28,955.13

29,072.51

28,843.94 28,879.38

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

LAST 1012.50 2960.00 1590.00 495.80 1597.00 726.50 1171.00 312.90 564.50 4740.00 534.50 261.72 3662.50 1179.00 865.50 1438.50 1906.00 468.05 1787.63 455.44 3326.10 262.54 1211.00 1156.00 2901.00 1789.00 1935.33 213.20 199.80 1182.25 714.00 304.00 356.10 288.23 1636.38 687.00 1215.00 617.90 553.00 603.70 2795.00 1276.00 3242.00 2638.00 267.50 3529.00 223.50 359.00 1301.40 284.20 79.38 572.83 566.50 198.10 905.00 7065.00 235.50 1026.00 578.50 1689.50 1423.00 6078.00 357.00 2047.00 1172.00 2082.50 587.50 2854.50 972.50 4851.00 433.70 3617.00 273.00 3371.00 2570.00 478.20 5555.00 473.72 1120.00 1183.00 147.90 1566.18 1079.00 2176.00 652.00 360.40 242.75 2910.00 978.50 532.00 228.82 1789.70 4090.00 1590.00 5385.10 7.50

CLOSE 998.70 2990.00 1592.00 506.50 1574.00 722.00 1163.00 306.80 561.50 4718.50 536.50 259.45 3662.00 1177.00 860.00 1416.00 1906.00 471.00 1778.00 456.00 3354.00 262.10 1212.00 1147.00 2900.00 1790.00 1940.50 215.80 203.20 1177.00 709.50 306.40 355.90 285.15 1634.00 683.50 1237.00 618.00 554.00 610.00 2766.00 1274.00 3233.00 2624.00 270.50 3524.00 219.70 362.00 1292.00 285.10 79.40 575.50 567.00 200.20 902.70 7040.00 235.30 1019.00 576.50 1696.50 1443.00 6082.00 353.20 2038.50 1178.00 2065.50 590.00 2814.00 969.00 4865.00 435.00 3635.50 274.90 3390.00 2573.00 477.60 5680.00 473.90 1118.00 1190.00 144.00 1562.00 1106.00 2167.00 653.50 339.50 244.30 2913.00 979.00 517.50 229.20 1789.00 4081.00 1598.00 5390.00 7.50

NET.CHNG 13.80 -30.00 -2.00 -10.70 23.00 4.50 8.00 6.10 3.00 21.50 -2.00 2.30 0.50 2.00 5.50 22.50 0.00 -2.95 11.00 -0.60 -29.00 0.30 -1.00 9.00 1.00 -1.00 -5.50 -2.60 -3.40 6.00 4.50 -2.40 0.20 3.10 2.50 3.50 -22.00 -0.10 -1.00 -6.00 29.00 2.00 9.00 14.00 -3.00 5.00 3.80 -3.00 10.00 -0.90 -0.02 -3.50 -0.50 -2.10 2.30 25.00 0.20 7.00 2.00 -7.00 -20.00 -4.00 3.80 8.50 -6.00 17.00 -2.50 40.50 3.50 -14.00 -1.30 -18.50 -2.00 -19.00 -3.00 0.60 -125.00 -0.20 2.00 -7.00 3.90 5.00 -27.00 9.00 -1.50 20.90 -1.55 -3.00 -0.50 14.50 -0.30 1.00 9.00 -8.00 0.00 0.00

PCT.CHNG 1.38% -1.00% -0.13% -2.11% 1.46% 0.62% 0.69% 1.99% 0.53% 0.46% -0.37% 0.89% 0.01% 0.17% 0.64% 1.59% 0.00% -0.63% 0.62% -0.13% -0.86% 0.11% -0.08% 0.78% 0.03% -0.06% -0.28% -1.20% -1.67% 0.51% 0.63% -0.78% 0.06% 1.09% 0.15% 0.51% -1.78% -0.02% -0.18% -0.98% 1.05% 0.16% 0.28% 0.53% -1.11% 0.14% 1.73% -0.83% 0.77% -0.32% -0.03% -0.61% -0.09% -1.05% 0.25% 0.36% 0.08% 0.69% 0.35% -0.41% -1.39% -0.07% 1.08% 0.42% -0.51% 0.82% -0.42% 1.44% 0.36% -0.29% -0.30% -0.51% -0.73% -0.56% -0.12% 0.13% -2.20% -0.04% 0.18% -0.59% 2.71% 0.32% -2.44% 0.42% -0.23% 6.16% -0.63% -0.10% -0.05% 2.80% -0.13% 0.06% 0.22% -0.50% 0.00% 0.00%

LI E

Wednesday April 15, 2015 | BUSINESS DAILY

HEALTH Cut oﬀ blue lights befo≥e bedtime fo≥ sound sleep

SPORTS Man-U playe≥s tell Chelsea to be wa≥y of in-fo≥m Fellaini

Page 28

Page 31

H E A LT H

Insu≥e≥s hesitate as Angelina Jolie spu≥s genetic cance≥ tests HEALTHCARE Companies say they don’t have

data related on medical risks to justify cover

edical researchers call it the Disease Control and Prevention ad“Angelina Effect,” the surge visory committee on young women in demand for genetic test- and breast cancer, said more woming attributable to movie star Angelina en with a family history of cancer Jolie’s public crusade for more aggres- should be able get these tests. “If sive detection of hereditary breast and we have members who are not beovarian cancer. ing tested in a timely manner, we But there’s a catch: Major insurance know that their risk of cancer in companies including Aetna, Anthem the long run costs us and them a and Cigna are declining to pay for the lot more,” Kutner said. latest generation of tests, known as mulKaiser, which insures its own ti-gene panel tests, Reuters has learned. members, covers panel tests for The insurers say that the tests are un- patients with family histories of proven and may lead patients to seek cancer. out medical care they don’t need. That’s not so at three of the four That’s a dangerous miscalculation, largest managed care companies. Aea range of doctors, genetic counsellors, tna Inc, Anthem Inc and Cigna Corp academics and diagnostics companies state in their policies that in most cases said. While they acknowledge that mul- they don’t cover multi-gene panel tests. ti-gene tests produce data that may not The fourth, UnitedHealth Group, covbe useful from a diagnostic standpoint, ers the tests if patients meet certain they say that by refusing or delaying criteria. coverage, insurance companies are enAll insurers cover screenings for dangering patients who could be under- BRCA1 and BRCA2 and for certain othgoing screenings or changing er genes for women their diets if they knew about who have family the possible risks. histories of cancer. The≥e was a need The tests have come a Indeed, such covfo≥ mo≥e clinical long way since Jolie, 39, went erage is mandated t≥ials and ≥esea≥ch by the Affordable public in 2013, revealing that she underwent a double masCare Act, known as to establish exact tectomy after a genetic test Obamacare. ≥isks and medical found she carried mutations But many insurguidelines fo≥ each ers said they simply in the BRCA1 and BRCA2 don’t know enough genes, indicating a high risk type of mutation of breast and ovarian cancer. about the specific She disclosed last month that risk of other mutashe had her ovaries and faltions to justify covlopian tubes removed. erage of the new family of tests. The new panel tests, which can cost They also say that the tests may find between $2,000 to $4,900 (Sh185,800 mutations with a well-established link to Sh455,210), analyse 20 or more genes to a disease, but which are difficult to at once. That allows healthcare profes- interpret. These results could lead to sionals to establish possible DNA links patients taking misguided actions to other cancer-related conditions such about medical care, such as prevenas Lynch syndrome and Li-Fraumeni tive chemotherapy and surgery. Syndrome earlier. Humans have about Aetna’s medical director of quality 23,000 genes. management, Robert McDonough, Susan Kutner, a surgeon at a Kaiser said Aetna pays for testing of individPermanente hospital in San Jose, Cali- ual genes but that “the routine applicafornia, who serves on a US Centers for tion of a panel would be considered un-

Photo illustration of US actress Angelina Jolie and cancer cells. BD GRAPHICS

proven.” Cigna’s David Finley, national medical officer for enterprise affordability, said multi-gene tests are more likely to find unknown mutations for which there are no care guidelines. “This is where there is controversy and disagreement,” Finley said. “My problem is what do you do with that information?” Instead, he said, there was a need for more clinical trials and research to establish exact risks and medical guidelines for each type of gene mutation. Healthcare professionals said that while they recognise the downside of patients getting unclear information about their genetic makeup, genetic counselling and support from doctors can mitigate risks. Mary Daly, a physician who chairs the National Comprehensive Cancer Network guidelines panel for breast and ovarian cancer, oversees the process for setting guidelines that most doctors in this field follow. She points to what is, in effect, a “Catch 22:” Without insurance coverage of these tests, there isn’t enough data to analyse how effective they are.

“If we don’t start looking at these genes, we’ll never obtain the data we need,” she said. Leading academics in genetic research also dispute the claim that multi-gene tests produce too much confusing information, saying they often lead to beneﬁcial steps such as cancer screenings. “The utility of panel testing is that we know there are a lot more genes beyond BRCA1 and BRCA2 that are associated with cancer predisposition,” said Colin Pritchard, a University of Washington geneticist. Pritchard said the understanding of the link between genetic mutations and cancer is evolving quickly. A recent study in the New England Journal of Medicine established rates of breast cancer associated with a mutation in one of the genes included in many of these panel tests, known as the PALB2 gene. Hereditary cancers are expected to account for about ﬁve per cent of the 230,000 cases of invasive breast cancer that will be diagnosed this year in the United States. In the year Jolie went

public about her testing, an AARP Public Policy Institute study found that BRCA testing had risen 40 per cent. Jolie’s spokesperson did not return a call requesting comment on the multi-gene testing trend. Myriad Genetics Inc, which accounts for 90 per cent of the hereditary cancertesting market, said 15 of the 25 genes that National Comprehensive Cancer Network guidelines indicate should be included in multi-gene testing are in its “MyRisk” panel test. The business represents a $5 billion (Sh464.5 billion) global market opportunity for Myriad, the company said in January. Other lab companies including Ambry Genetics, Quest Diagnostics Inc and Invitae Corp each oﬀer a variety of panels that start at about seven genes and go up to 40 genes. “In general, the trend is moving toward more genes,” said Carin Espenschied, a senior products manager at Ambry and a genetic counsellor. “Research and insurance companies kind of just have to catch up.” - REUTERS

BUSINESS DAILY | Wednesday April 15, 2015

Life: Health

Cut oﬀ blue lights f≥om devices befo≥e bedtime fo≥ sound sleep

STUDY

RESEARCH Studies show

that special eye glasses cut effects of gadgets like smartphones on sleeping

Dr Francis Kateh (right) volunteers to receive a trial vaccine against Ebola at Redemption Hospital on the outskirts of Monrovia, Liberia, in February. AFP

Kem≥i unveils initial ≥esults of Phase One Ebola vaccine t≥ials

ost evenings, before watching latenight comedy or reading emails on his phone, Matt Nicoletti puts on a pair of orange-coloured glasses that he bought for $8 (Sh743.20) off the Internet. “My girlfriend thinks I look ridiculous in them,” he said. But Nicoletti, a 30-yearold hospitality consultant in Denver, insists that the glasses, which can block certain wavelengths of light emitted by electronic screens, make it easier to sleep. Studies have shown that such light, especially from the blue part of the spectrum, inhibits the body’s production of melatonin, a hormone that helps people fall asleep. Options are growing for blocking blue light, though experts caution that few have been adequately tested for effectiveness and the best solution remains avoiding brightly lit electronics at night. A Swiss study of 13 teenage boys, published in August in The Journal of Adolescent Health, showed that when the boys donned orange-tinted glasses, also known as blue blockers and shown to prevent melatonin suppression, in the evening for a week, they felt “significantly more sleepy” than when they wore clear glasses. The boys looked at their screens, as teenagers tend to do, for at least a few hours on average before going to bed, and were monitored in the lab. Older adults may be less affected by blue light, experts say, since the yellowing of the lens and other changes in the aging eye filter out increasing amounts of blue light. But blue light remains a problem for most people, and an earlier study of 20 adults ages 18 to 68 found that those who wore amber-tinted glasses for three hours before bed improved their sleep quality considerably relative to a control group that wore yellow-tinted lenses, which blocked only ultraviolet light. Devices such as smartphones and tablets are often illuminated by light-emitting diodes, or LEDs, that tend to emit more blue light than incandescent products. Televisions with LED backlighting are another source of blue light, though because they are typically viewed from much farther away than small screens like phones, they may have less of an effect, said Dr Debra Skene, a professor of neuroendocrinology at the University of Surrey in England. LEDs are also increasingly popular as room lights, but “warm white” bulbs, with less blue, tend to be a better choice than “cool white” for nighttime use. The lighting company Philips also makes a bulb, called Hue, that can change the intensity of its component colours via an app, and GE last month announced a

BY SARAH OOKO

nitial results from Phase One trials of an Ebola candidate vaccine known as rVSV ZEBOV have shown that the vaccine is safe and generates an immune response against the deadly Ebola virus. The trials began in December 2014 in Kilifi County and three other sites in Switzerland, Germany and Gabon. “The results show that the vaccine is safe and has the potential to offer protection against the disease,” said Prof Solomon Mpoke, director at the Kenya Medical Research Institute (Kemri) which conducted the trials at Kilifi. The candidate vaccine was given to 138 volunteers across the four sites. Some of them experienced fever a few days after the vaccination while others developed transient pain or swelling of their joints. Aside from these mild symptoms, no serious side effects of rVSV ZEBOV were observed among the volunteers. The results of these trials, which have been published in the current New England Journal of Medicine, also show that the candidate vaccine was able to raise antibody responses that neutralised Ebola-like virus particles in the laboratory. Studies show that cutting down on amounts of blue light emitted by electronic devices ahead of bedtime improves the quality of sleep. reduced-blue LED bulb, meant to be used before bedtime. “Conceptually, anything that will decrease that blue light exposure at night will be helpful,” said Dr Christopher Colwell, a neuroscientist at the University of California, Los Angeles. “I know some gamers who swear by those orange-tinted goggles.” But orange glasses are not a panacea, Skene said. “It isn’t just get rid of the blue and everything’s fine,” she said. The intensity of light, in addition to colour, can affect sleep, she said, and not all brands of orange-tinted glasses have undergone enough independent testing for their ability to aid sleep. Screens that are not backlit, such as some e-book readers, are preferable to typical brightly lit screens, Skene said. Nicoletti says that the orange glasses he wears, an industrial-safety brand called Uvex, do make some colours, notably blues and greens, harder to distinguish. He also uses applications designed to alter the blue light impact of his devices depending on the time of day: an app called f.lux for his computer and Twilight for his mobile phone. Other ideas are proliferating. An Ohio company called LowBlueLights.com, for

example, offers filters said to block blue light by covering the screens of electronic devices like the iPhone or iPad. Other company products include “low blue” LED lights and orange eyewear. During the daytime, experts say, exposure to blue light is good. Best of all is sunlight, which contains many different wavelengths of light. “That’s what our brain knows,” said Kenneth P Wright Jr., director of the sleep and chronobiology lab at the University of Colorado, Boulder. A 2013 study he led, published in the journal Current Biology, showed just how different things can be without nighttime lights: After participants had camped in the mountains for a week, their bodies began to prepare for sleep about two hours earlier than normal. Short of cutting out all evening electronics, experts say, it’s advisable to use a small screen rather than a large one; dim the screen and keep it as far away from the eyes as possible; and reduce the amount of time spent reading the device. “If you can look at the iPhone for 10 minutes rather than three hours, that makes a lot of difference,” Skene said. - THE NEW YORK TIMES

Breakthroughs Despite these breakthroughs, the researchers are yet to ascertain whether the vaccine can prevent a person from becoming infected with Ebola. As such, the vaccine will be further tested in a Phase Three ring vaccination study in Guinea — one of the countries aﬀected by the Ebola outbreak — to see if it protects those at risk of infection from the disease. Although there are no cases of Ebola reported in Kenya, Kemri had earlier noted that demonstrating the safety and immunogenicity of the candidate vaccine among the Kenyan population, would facilitate its use in the country whenever necessary. The experimental Ebola vaccine was developed by scientists at the Canadian National Microbiology Laboratory and was cleared for clinical trials last year by the World Health Organisation (WHO). The researchers noted that giving volunteers the vaccine cannot cause them to become infected with the virus. The WHO notes that the ongoing Ebola outbreak in West Africa is unprecedented in scope and duration. Even though the outbreak is slowly coming to an end, health experts fear that until speciﬁc treatments or vaccines targeting the virus are developed and licensed for use, the world will continue to be under-prepared for subsequent Ebola outbreaks. Latest WHO statistics show that there have been approximately 25,000 cases and more than 10,000 reported Ebola Virus Disease deaths in Guinea, Liberia and Sierra Leone. sooko@ke.nationmedia.com

Wednesday April 15, 2015 | BUSINESS DAILY

Life: Health

Home best fo≥ Ga≥issa va≥sity students afte≥ t≥agedy LIFE COACHING DR FRANK NJENGA

n the wake of the Garissa University College tragedy, I know that many students have been let go to their homes and are currently awaiting transfer to Moi University’s main campus. With all that happened as they watched, is going home the right therapy or do they require specialised therapy. Again, what are the demerits of these students rejoining the Garissa campus?

he events in Garissa bring back the memories of all the tragic encounters we have had with terrorists. On August 7, 1998 the American Embassy was bombed, killing more than 200 people. Most of them were Kenyans. That day, remains indelibly marked in my mind and can recall almost minute by minute what transpired. The late minister Joseph Kamotho was one of the hundreds we saw in hospital that day. As has happened after most of the attacks, President Moi visited the injured. That night after visiting the site I visited one FM radio station and asked to be allowed to do a phone in programme. For three hours, the show run. Twitter has replaced what we did in 1998. The pain anguish, anger and frustration is the same as it was almost 20 years ago. The actors are diﬀerent, the challenge is the same. We put in place “operation recovery” that was the main volunteer counselling service that has now been ably replaced by the Red Cross. A sense of déjà vu engulfs me after every terror attack. Great statements always follow. Diﬀerent players, years later, but same theme “this is a war we

Bottom Line

or one moment, just imagine what you would be able to accomplish if you knew you couldn’t fail. That anything you put your mind to or wanted to achieve, it would be accomplished. I’m sure if you thought in terms like that, you would be a high-action-oriented person, hardly ever second guessing anything. Most people don’t realise or even come close to acknowledging the incredible potential that they are capable of. I believe that we all have greatness deep within us from the time we were born. However, somewhere along the

cannot afford to lose” “the war on terror must be won”. We will win if all men and women of good will come together. We must not allow religion, ethnicity or race divide our beloved country. Famously, President Uhuru Kenyatta said: “Our head is bloodied, but unbowed.” Other famous words include, “The government has begun a man-hunt of the terrorists and we have vowed to bring them to justice.” All these words and many others are uttered in absolute and sincere belief that our country is at war. Nearly 20 years since August 7, 1998, I am beginning to think that ours is NOT a war. It is certainly not a war in the Oxford Dictionary meaning of the word war. War is defined as a state of armed conflict between different countries or different groups within a country. In this simplified definition of war, there is the implication that the contestants are clearly defined, that there is a date of onset, and that most importantly, that two (or more armies) are involved. The Geneva Convention (1949) established the terms of engagement in a war. The treatment of both civilians and military personnel are clearly defined by this convention. The status of civilians is clearly conceptualised and defined in the convention. Our engagement with Al-Shabaab cannot be termed a war, in the sense that we do not have a date of onset, clearly defined theatre of battle, and we also do not have clearly defined combatants. In this “war” civilians are the main (if not only target). If for no other reason, but this, we must seek to find a different characterisation of our predicament. In many ways (and by way of definition) we are closer to a war of attrition, than conventional war setting. In this later scenario, it is recognised that there is to be expected a prolonged struggle, in which each side expects the other to wear out. Neither side expects to win by a

Garissa University College students leave military barracks in Garissa on April 4. More than 600 students were ferried to their homes in National Youth Service buses. FILE

final decisive blow! So, what is this new and effective way of conceptualising Al-Shabaab? The truth is that no one person or groups of persons have all the answers, or even the right questions When we pontificate about the current state of Islamic extremism, we must look into the past and remember the Crusader who in the name of Christian religion waged war on Islam. In 1095, Pope Urban II proclaimed the first crusade with the stated goal of restoring Christian access the holy places and near Jerusalem. Two hundred years later the struggle ended in failure! Those planning to dominate Kenya with religious extremism the 21st century could do well to learn from history. Indeed, because religious wars are by their very nature devoid of reason or logic to the normal mind,

any attempt to understand why a well trained Kenyan Lawyer with a bright future would want to die in Garissa is met with the answer, I do not know. The human being (and indeed all animals) fears death. The suicide bomber looks forward to death. That is the diﬀerence between him and our defence forces. The latter are simply parents, children, siblings and citizens who got out to work in defence of Kenya, but not so that they can die. If you are wondering how all the foregoing relates to your question, let me assure you that it does. All the foregoing are the questions likely to preoccupy university students who were the innocent victims of a situation beyond their control. All they want is a safe and secure environment in which to enjoy a God given right. The simple answer to your very

complex question therefore is — home is best for everybody during any tragedy. Let them be home with their loved ones, at least for now. Secondly, and this is the lesson I have learnt since 1998, remember the human being is very resilient. Many will recover under the care of family and community, while a few will require highly specialised care. We must let the Red Cross and other experts tell us who needs what help. Should they go back to Garissa?’ Perhaps not at this stage. Bottom line, much as the many arm chair experts try to give this advice or other advice, terrorism is simply too complex to be called just a war. Remember Al-Shabaab attacked Kenya before our troops entered Somalia. Pulling them out does not make sense until we know the reasons for the attack in the ﬁrst place.

Conquer your fears and take action to achieve greatness way and the older we get, we let fear completely take over and rob us of the realisation of just how powerful we really are. This is extremely important because some of the most talented people in the world never get that idea off the ground, write their first book that they always wanted to write, open up their own business, or do something remarkable with their life, all because of fear. Can you remember something you once wanted to achieve or a goal that you set for yourself, and the first thought that came to mind was “I

can’t really do this” or “How will I ever be able to achieve this goal?” I know I have had plenty of those moments. I always would set huge goals and then think to myself, “Stop kidding yourself Matt, you can’t do that.” It’s a natural human reaction to have those thoughts occur when you set huge goals for yourself, goals that will make you grow as an individual and stretch your current way of thinking. Just know that those feelings of fear are completely natural and happen to everyone who has achieved greatness or done something remark-

able. However, what must not happen regardless of how uncomfortable it may be at ﬁrst is to let those same exact feelings prevent you from taking massive action and constantly moving forward. This unfortunately is a category that most people fall into. There is a huge diﬀerence between feeling fear and letting that fear hold you back. If we want to achieve greatness and reach our full potential in life, one thing is for certain: We have to move past the fear and take action anyway! Fear wants you to stall and stay still. Fear and mediocrity go hand in hand. Don’t let them defeat you like

they have defeated so many. That is the whole point and purpose of setting big goals. They help us grow and move out of our comfort zone. If you line up some of the best innovators and highest achievers, I can almost guarantee you that they will tell you they felt tonnes of fear when they began to take action on their brilliant ideas. What they didn’t do is stop. They didn’t let the fear or thought of failure win the battle of their minds. We challenge you to constantly expand your vision as to what’s possible in your life. - ENTREPRENEUR

BUSINESS DAILY | Wednesday April 15, 2015

Life: Health

Rising life expectancy to beneﬁt investo≥s in old age healthca≥e

Elderly women at a party organised by Purity Elderly Care Foundation in Othaya last year. FILE

DOCTOR ON CALL EDWARD OMETE

lobally the rising life expectancy is a trend replicated even in Africa. If you are reading this chances are that you will most likely live beyond 60 years barring any unforeseen universal catastrophes. The recently released Kenya Demographic and Health Survey 2014 corroborates this. As this shift happens it creates a demand in several medical services — orthopaedics and associated services like skeletal imaging in particular shall be in high demand. For doctors sitting in outpatient clinics it appears over the last few years the number of X-Rays requested for chronic bone pains mainly hip, knees and joints is certainly rising. Amongst the elderly it may even overtake the chest X-Ray as one of their most requested imaging investigation. Sadly nothing we do at least in the short term can address this problem. Osteoarthritis a degenerative bone condition leads to deformity of bones and

joint disruption in the elderly. Hips and knees are some of those worst aﬀected and are the major complaints for this ageing group. Human mobility means one constantly desires to be ambulant. With ageing this becomes more diﬃcult, however. An elderly person with such joint and bone conditions as osteoarthritis lives in sheer pain. Every walking step becomes a torture almost unbearable in severe cases. As a result many are condemned to indoor lives with reduced movement. This has created an industry for prosthetic devices to manage some of these conditions. Worldwide the orthopaedic and associated implants market is guaranteed growth as the number of the aged also rises. Previously many patients had to take a never ending cocktail of pain relieving medication almost on a daily basis to manage their condition. Fortunately these orthopaedic implants when properly applied solve the problem much better. Their relatively higher

costs, however, deter many people from using them. The orthopaedic implant industry itself is classed according to the device types. Basic implants mostly from Asian countries are cost friendly and popular with many people from our continent. At the few public hospitals doing the procedure the cost will vary from Sh200,000 to Sh400,000. Not an insignificant amount though for the average Kenyan. For those without liquidity issues, high-end implants with mechanical pressure biosensors and a few computerised ones that adjust for weight shifting exist. Some university hospitals have entire kinesiology or the “study of movement” institutes. These work in partnership with the orthopaedic surgeons to develop an implant or implants specifically tailor-made for the individual. This latter group, however, is not a cheap one. One of these high-end devices can go for as high as Sh20 million including the procedure. The science that goes into the devices is also cutting edge perhaps explaining the cost Sadly, what makes the whole osteoarthritis and degenerative bone diseases unfortunate is that usually by the time such procedures are needed one is at their lowest in terms of financial earning power. Many insurance companies will also not accept or offer medical cover for these procedures given the age. At a recent online discussion for the ageing on how to finance such “inevitable” medical expenditures, a suggestion on a “futures” investment was mooted. Here one should start paying for the prosthetics and keep them in “store” as insurance. Certainly the probability is high that you will require an orthopaedic implant if you live beyond 75 years. Feedback: Email: info@healthinfo.co.ke Twitter:@edwardomete

TIMES 24043

Plane takes off with wo≥ke≥ stuck in ca≥go hold A Los Angeles-bound Alaska Airlines flight made an emergency landing at a Seattle-area airport on Monday afternoon after it took off with a worker trapped in a cargo area under the cabin where he had fallen asleep, the US carrier said. The pilot of Alaska Airlines flight 448 reported hearing banging from beneath the aircraft after takeoff from Seattle-Tacoma International Airport, south of Seattle, the statement said. Screaming could also be heard

from the cargo hold, an airport spokesman said.

When the aircraft returned safely after being in the air for 14 minutes, a ramp agent was found inside the pressurized and temperature-controlled front cargo hold, the statement said. After exiting, the Menzies Aviation employee told authorities he had fallen asleep, Alaska Airlines said in a statement. “The ramp agent appeared OK, and was transported to the hospital as a precaution,” the airline said on its website. “We are actively investigating the matter.”

TIMES CROSSWORD 24044 1

Across

Down

1 Returned weapon with faulty end liable to drop off (6)

1 Kind of trial in which defence’s opening with unusual point (8)

4 Rearrange article in daily, revealing reporter’s alter ego (8)

2 Funny, unlike 1984 (3)

10 Suffer with new paint, though ﬁnally grabbing right brush (11)

5 Enjoying economic improvement, as PM I would barely reshufﬂe (8,6)

11 One who takes care of litter in plant (3) 12 Hard-headed pope and emperor (7)

6 Copying European composer, apart from piano key (7)

14 Catastrophic football game at home — no score to our side (7)

7 Wrongly interpret girl protecting criminal? Right (11)

15 Run operation accepted by literary collector and social observer (14)

8 Most original points brieﬂy presented, with another in full (6)

17 “Pay attention”, as the pupil said to the examiner? (3,4,2,5)

9 Moving sentence from history (14)

3 More contrite when error is sorted out (7)

21 Country of exile, amongst others (7)

13 When baby arrives, arrange bed for it at hospital (4,2,5)

22 British resume converting some Asians (7)

16 Person providing marks some classes sorely needed (8)

23 Sailor one may need to pay on boat (3) 24 Executes procedures to limit debate (11)

18 Male with a measure of maturity right for executive position (7)

26 Devotee making an impression, taking that female in (8)

19 Eavesdrop as waiter, moving around quietly (7)

27 It may provide access to food as an initial goal (6)

20 Town and gown (6) 25 Joshua’s father and sister (3)

SUDOKU PUZZLE

232

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

I MP O V E R I S H A S I S N A I E E A C C O N S T R A I N T E MMA H T U R D U U V S H E P H E R D S P U R S E S E E D O A A N C U R A R E S WA N K I N G R A S N D I E D E N T A T E D R A G O N E A I E M U R G C O R P O R A T I O N T A X H N N D D N N I O P E N S Y B A R I T I S M W S O I N T P L A T E I N P R O G R E S S

SUDOKU 231

Wednesday April 15, 2015 | BUSINESS DAILY

FOOTBALL Red Devils will face Blues at Stamford Bridge on Saturday

Mancheste≥ playe≥s tell Chelsea to be wa≥y of in-fo≥m Fellaini

SPORTS BRIEFING SPORTS BRIEFING Duo miss Bayern Champs League tie Bayern Munich will be without midfielders Bastian Schweinsteiger and Franck Ribery when they travel to Porto for tonight’s Champions League quarter-final first leg.Frenchman Ribery is not yet fully fit following a fiveweek absence with an ankle injury while Schweinsteiger has had a virus for the past few days. “Bastian and Franck will not be with us against Porto. That is bitter,” sports director Matthias Sammer said on Monday as the problems started to pile up for the treble-chasing Bavarians. Medhi Benatia, David Alaba, Javi Martinez and Arjen Robben had already been sidelined by injuries. Jerome Boateng, who was rested for Saturday’s 3-0 win over Eintracht Frankfurt due to a minor muscle problem, is back in the squad. “Those who are with us have our full trust,” Sammer told reporters ahead of the team’s departure for Portugal later on Monday. “The team is hungry.” Bayern are 10 points clear at the top of the Bundesliga and are also through to the German Cup semifinals. **

Kiplagat steps down to focus on poll

helsea will have to be wary of the danger posed by the in-form Marouane Fellaini when Manchester United visit Stamford Bridge on Saturday, according to his team mates Ashley Young and Chris Smalling. Fellaini has played a key role in United’s run of six straight league wins and the towering Belgium midfielder received a standing ovation from the Old Trafford crowd when he was substituted near the end of Sunday’s 4-2 victory over Manchester City. “Felli has been brilliant,” Young told the club’s in-house TV channel. “Everyone will say the same. “He’s been fantastic. I’ve said before that very few people can handle him. On his day he’s unplayable.” Young opened United’s account against City with a close-range finish before supplying an inch-perfect cross for Fellaini to head

Manchester United’s Belgian midfielder Marouane Fellaini celebrates with team-mates after he scored the second goal during the English Premier League football match between Manchester United and Manchester City at Old Trafford in Manchester on Saturday. AFP the second goal. Smalling, who completed the scoring on Sunday after Juan Mata had slid home the third goal, also heaped praise on former Everton player Fellaini who is back to his best after an awful first season at United last term. “Felli’s been a handful for every team and there hasn’t really been an answer to him,” said England defender Smalling. “He needs two players to mark him so he frees up a lot of space. He’s been terrific.” Fellaini has had his share of doubters among the United faithful Since his 27 million pounds ($39.45 million) move but manager Louis van Gaal said Sunday’s ovation showed

he had won them over. “The fans see that he is very important for the team,” said the Dutchman. “He scores goals and lifts the pressure when we need it. “He always plays the ball to a red shirt, that is also very important.” Third-placed United’s stunning sequence of results has given them an outside chance of lifting the title but they will need to inflict Chelsea’s first home league defeat of the season to cut the deficit on the leaders to five points. Van Gaal’s side have six matches left this season while Chelsea have a game in hand on United and second-placed Arsenal who are seven points off the pace.

Isaiah Kiplagat conﬁrmed that he is stepping down as Athletics Kenya (AK) boss to concentrate on his campaign to be elected a vice-president of world governing body IAAF.Kiplagat, who has served as AK chairman for the past 22 years, and also sits on the IAAF governing council, is bidding for a vice-presidency post in a vote at the IAAF Congress ahead of the world championships in Beijing in August. “I have served in my capacity as Athletics Kenya chairman for many years. I think it is the right time for me to step aside for a new person to take over the leadership,” Kiplagat told reporters. “I am taking leave as of May 1, and I have as a result appointed my deputy Jackson Tuwei, as the new AK chairman and Paul Mutwii as his deputy. “I am hopeful that I will be elected as one of IAAF vicepresidents in the incoming ofﬁce, led by Britain’s Sebastian Coe, who is also on the campaign trail to succeed Lamine Diack who is retiring,” said Kiplagat. Athletics Kenya boss Isaiah Kiplagat. AFP

-REUTERS

Rodge≥s says will talk to Raheem Ste≥ling about behaviou≥

iverpool manager Brendan Rodgers admitted he will talk to Raheem Sterling about his responsibilities as a professional footballer after a video emerged of the player apparently inhaling nitrous oxide. The Sun newspaper published a clip of England international Sterling supposedly taking the legal high –- commonly known as laughing gas -- on their website during Liverpool’s 2-0 win over Newcastle United. Sterling, who scored in the win over Newcastle which helped Liverpool close

the gap on fourth-placed Manchester City in the Premier League to four points, has been under intense scrutiny recently. The 20-year-old forward was pictured smoking from a shisha pipe last weekend, and recently revealed in an interview that he turned down a lucrative contract at Anﬁeld which saw him light-heartedly heckled at Liverpool’s kit launch. Rodgers said: “For me it is something that when you are a professional sportsperson at the top, I don’t think it

Liverpool manager Brendan Rodgers. AFP

is something you should be doing. “It is as simple as that. But I will

speak to him. We want players here who are super-professional and focused on their football. He very much is. It’s very simple, I’ll speak to Raheem on that. It will be dealt with internally. “Like I’ve said before, young players make mistakes. He is a young kid who is in the spotlight now. He knows the demands of being a top class player and professional, both on and off the field.” Rodgers wholeheartedly praised Sterling’s influence on the pitch as he helped the Reds return to winning ways

after back-to-back defeats to Manchester United and Arsenal. Sterling scored a sublime opening goal in the ninth minute before Joe Allen added Liverpool’s second after the break, while Newcastle had captain Moussa Sissoko sent oﬀ for a secondbookable oﬀence. “You see the way Raheem plays,” Rodgers added. “He is a kid that is very strong willed and strong minded. He should have had a hat-trick, his performance was outstanding, him and Coutinho. -AFP

BUSINESS DAILY | Wednesday April 15, 2015

MARK TO MARKET MARKET ANALYSIS With Rufus Mwanyasi

www.businessdailyafrica.com

How Sasini ≥evaluation can make sense INCOME Exports of non-processed produce and selling assets not best way of earning revenue

ecently Sasini Tea and Coffee accounting for more than 60 per cent Ltd made news after announcof total revenues, persistent decline in ing plans to dispose of a huge prices of the beverage poses a danger portion of its land. to the company’s bottom line. The move sparked off a 20 per cent In addition, traditional export marrally last week, aimed at booking some kets such as the UK have seen demand of its revaluation gains. According to for mass-marketing tea plateau while its 2014 annual financial report, valuacountries in the Middle East, mired in tions of its freehold land rose by Sh4.3 political turmoil, have witnessed frebillion which subsequently pushed up quent disruption in purchases. its total assets to Sh13.6 billion, up from The coffee market has also been Sh7.8 billion or a 74 per cent jump. unforgiving. This year, poor rainfall Analysts expect current full-year is expected to affect yields. Besides, earnings to increase and, perhaps a uncertainty and lack of confidence in recommendation for Kenya’s marketing system continues to pose a dividend pay-out. All Plans to agg≥essively challenges regarding the this is great. ma≥ket its b≥anded traceability and accessiHowever, investors bility of coffee from the will need to focus on teas and the where and how the procountry. development of ceeds will be expended Since coffee sales acunique flavou≥s fo≥ its to give “legs” to the rally count for 23 per cent of coffee shops a≥e steps as it were. the company’s revenues, in the ≥ight di≥ection such issues threaten a Personally, owing significant portion of to the difficult international coffee market its revenue base. and the unpredictability of tea prices, In consideration of value creation, I’d prefer to see the monies channelled I doubt continued investments on the toward more value addition projects as above traditional segments will yield opposed to exports of non-processed anything substantial in future. produce. On the other hand, investment in Here are my reasons. Latest results the retail division, which consists of a by the company show a disappointing coffee chain and its local branded teas, performance. Revenues have stagnated holds a huge promise for stable and for the past four years while gross profrising revenues. its and net earnings dropped by 11 per The division, which accounted for cent and 50 per cent respectively as six per cent of last year’s total revenue, poor tea prices persisted at the Mombabooked Sh175 million, up from Sh170 sa auction due to oversupply. With tea million in the previous year. In fact, out

Crude oil rose yesterday after a forecast that US shale oil output would record its ﬁrst monthly decline in more than four years and on tension in Yemen, where top oil exporter Saudi Arabia is embroiled in a civil war. Brent crude for May was up 50 cents at $58.43 a barrel by 0815 GMT, while US crude was up 60 cents at $52.51. The US Energy Information Administration (EIA) said on Monday it expected US shale production to fall by 45,000 barrels per day (bpd) to 4.98 million bpd in May.

Boost

Some of the coffee and tea brands milled and marketed by Sasini. The company’s revenues have stagnated for the past four years. FILE of the nine revenue streams the company has, this division was among the only three that had positive growth.

Strategic shift Admittedly, a more dominant retail division will eﬀectively turn the agricultural ﬁrm into a consumer product company. But I strongly believe such a strategic shift augurs well for its bottom line in the long term. The growing middle class, non-expo-

sure to the vagaries of foreign exchange and international commodity prices, rising disposable incomes and a growing economy all work in the company’s favour. Hence plans to aggressively market its locally branded teas and the development of unique flavours for its coffee shops are steps in the right direction. I believe Sasini stands to grow stronger and profitable if more investments are channelled toward this direction.

GLOBAL MARKET WATCH DJ INDU 17,977.04 -80.61

FTSE 100 3,289.77 -13.46

XETRA DAX 12,254.16 -84.57

MARKET CAP IN SH BN TOTAL SHARES TRADED

CAC 40 5,217.39 -36.73

FTSE MIB 23,731.43 -277.48

SMI PR 9,407.27 -22.98

EQUITY TURNOVER IN SH BONDS TURNOVER TOTAL DEALS (BONDS) TOTAL DEALS (EQUITY) NSE 20 SHARE INDEX

2,384.32

2,377.70 13,435,100

692,542,005

615,164,245

1,900,200,000

2,114,850,000

1,915

1,754

5,128.02

5,136.20

NSE ALL SHARE INDEX

170.78

170.31

PINEBRIDGE INDEX

874.66

878.24

FTSE NSE KENYA 15 INDEX

225.78

FTSE NSE KENYA 25 INDEX

226.15

92.42

1,237.32

FTSE NSE KENYA BOND INDEX FTSE ASEA PAN AFRICAN INDEX

HANG SENG 27,561.49 -454.85

NIKKEI 225 19,908.68 3.22

ALL ORD. 5,916.24 -11.82

SSE COMP 4,135.92 14.20

S&P SENSEX 29,044.44 165.06

HE SAID

17,027,100

Shale production has helped boost US oil output by more than four million bpd since 2010 and has been a key factor behind the collapse in world oil prices over the last year. But much lower oil prices, down from above $115 a barrel last June, have now begun to hit exploration. “It’s a small change, just a drop in the ocean, but an excuse to buy,” said Carsten Fritsch, analyst at Commerzbank. “A lot of speculative ﬁnancial investors think oil is cheap and are looking for a reason to get into the market.” Oil also found support from tension in the Middle East, where ﬁghting is continuing in Syria, Iraq and Yemen. - REUTERS

CURRENCY RATES

Market Activity LAST

Oil ≥ises above $58 amid ≥epo≥t of US shale output decline

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