Radar Screen

Corporate News

Life

Page 3

Page 8

Page 27

How to get value for

advertising money

THURSDAY, AUGUST 6, 2015

NO. 2155

Helios exits Equity

with sale of nal
stake to the NSSF
Private equity
rm more than
quadruples its
investment

Why Kenya ranks low

on quality of research

Ramji family to set up

second cement plant

BY VICTOR JUMA

The National Social Security Fund

(NSSF) has bought a 5.58 per cent
stake in Equity Group from private
equity rm Helios Investment Partners in a deal that has seen the latter
complete its exit from the bank at a
massive prot.
Equity chief executive James

Mwangi told the Business Daily that

Helios sold its remaining stake to the
provident fund after ceding a total of
18.87 per cent shareholding to three
other institutional investors.
The value of Helios stake in Equity
grew exponentially during the seven
years it was in the bank, forcing it to
rely on deep-pocketed buyers for a
EQUITY, Page 4
smooth exit.

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

ICPAK wants
audito Ouko
to name ogue

accountants
BY GITONGA MARETE AND
KIARIE NJOROGE

Helioss shaes
wee seen as an
ovehang. They have
supisingly managed
to sell at a pemium
on the maket (NSE)
pice,
JAMES MWANGI,
EQUITY GROUP HOLDINGS LIMITED CEO

WELCOME
NAIROBI
China Southern Airline
President
Tan Wangeng
leads his delegation on
arrival at the
Jomo Kenyatta
International
Airport after
the airlines
maiden ight
to the country
yesterday. See
story on page 7.

NEWS INDEPTH

COURTESY

BRIEFING

The Institute of Certied Public Accountants of Kenya (ICPAK) wants

the Auditor-General to release for
disciplinary action the names of
ocials who failed to account for
Sh67 billion worth of public funds
that were spent in the nancial year
2013/14.
ICPAK chief executive Patrick
Ngumi said yesterday auditing is
a legal process that is undertaken
according to laid-down procedures which accounting ocers
cannot be allowed to ignore without sanctions.
The report indicates that payments were not supported by invoices and receipts from service providers, updated asset registers were not
provided and that a number of the
agencies did not have audit committees and risk management policies
as required by the Public Finance
Management Act, he said.
Dr Ngumi said operating in such
an environment was contrary to the
requirement that procurement
committees meet and minutes
are taken before any expenditure
is incurred.
Is the Auditor-General saying
that there are no documents to
support all this?
AUDIT, Page 4
And we are talk-

Uhuru reprieve for

EACC top ofcials

Galvanised sheet
makers in 13pc growth

High fees discourage

data roaming over EA

Dollar exposure for

Treasury up Sh219bn

Ethics and Anti-Corruption

Commission top officials got a one
year reprieve after President Uhuru
Kenyatta rejected a Bill that would
have forced them to serve on acting
capacity pending vetting. Page 5

Galvanised sheets factories have

roared back to life, recording a 13.1 per
cent output growth in the first three
months of the year as demand for
affordable housing reverses last years
Page 6
declining trend.

The high cost of accessing data

bundles while roaming across East
Africa has made Kenyan mobile
subscribers shy away from using the
service.

Kenyas dollar-denominated debt rose

Sh219 billion in the first four months
of the year, exposing the country
to higher interest costs following
weakening of the shilling against the
green back. Page 19

Page 15

Sh500 trillion needed

for new UN anti-poverty
plan
Pages 12-13

BUSINESS DAILY | Thursday August 6, 2015

TOP NEWS

Shollei tende team

chaged with faud
ove CJ esidence

Fist aid

GRAFT Former chief registrar not in court,

suspects released on Sh600,000 bail each

tracts and ignored the lowest evaluated price without justiable and
Six members of the Judiciary tender
objective reasons.
committee which purchased a Sh310
They were further charged with
million house intended for the Chief
failing to comply with the law and
Justice have been charged with corguidelines relating to the tendering
ruption.
of contracts by failing to ensure that
the Judiciary did not pay in excess of
However, former Chief Registrar
the prevailing market prices in the
Gladys Shollei, who led the committee and is the rst accused in the
purchase of the controversial residence.
case, was not before the
Ms Shollei will be
anti-corruption court
Gladys Shollei is
charged with abuse of
presided over by Chief
oce and wilful failure
Magistrate Kennedy Biepotedly out of
to comply with procedali yesterday.
the county and has dures
relating to the
She is reportedly out
of the country and has pomised to cut shot management of funds.
The rst charge
promised to cut short he tip and etun
her trip and return to face
states that between
to face chages on April 16 and April 30,
charges on August 24.
August 24
Francis Kakai, Martin
2013 at the Supreme
Okwata, Benedict OmoCourt, Nairobi, being
lo, Thomas Atak, Nichothe chief registrar and
las Mbeba and Wyclie
accounting ocer of
Wanga denied that they engaged in
the Judiciary, she used her oce to
improperly confer a benet on Johnbuying the property from Johnson
son Nduya Muthama Holdings Ltd by
Nduya Muthama Holdings Limited
executing a contract and approving
without prior planning.
Their lawyer, Tom Macharia, sucthe payment of Sh310 million for the
cessfully applied for their release on
purchase of the CJs prospective residence whereas public procurement
bond and has been allowed to get
and nancial procedures were not
copies of witness statements and an
complied with.
investigation diary to prepare their
The second charge states that
defence.
The prosecution says that between
between October 5, 2012 and June
October 5, 2012 and June 3, 2013, at
3, 2015 she wilfully failed to comply
the Supreme Court, Nairobi, being
with the law regarding the management of funds and that the purchase
members of the tender committee,
they jointly engaged in buying a fully
of the residence was done in a manner
furnished residential property for the
that was not transparent.
Chief Justice at Sh310 million without
Magistrate Bidali released the susprior planning.
pects on a cash bail of Sh600,000 each
or bond of Sh5 million.
Another charge states that they
The case will be mentioned on Auwilfully failed to comply with the
gust 24 for xing a hearing date.
law relating to tendering of conBY VINCENT AGOYA

Homa Bay

Kevin Obonyo, a Kenya Red Cross ofcial, attends to Eric Omondi, a survivor of an accident
involving two boats that collided on Lake Victoria yesterday. Two people were killed and 25

injured in the incident. BENSON MOMANYI

S Sudans only bewey on vege of closue

Once hailed as a symbol of freedom,
South Sudans only brewery may be
forced to shut down as the worlds
youngest nation reels from 19 months
of civil war.
Drinks giant SABMiller opened
the brewery in 2009, two years before
South Sudan split from the north. The
agship beer was named White Bull,
after the distinctive and valued cattle
that are a symbol of national pride.
The brewery also represented the
countrys hard-fought freedom, won
in 2011, from Muslim-majority north
Sudan where Sharia law applies and
alcohol is banned.
The Sh5 billion ($50 million)
brewery just outside the capital Juba
was the single largest investment in
South Sudan apart from the oil industry and one of the few ventures
to provide much-needed tax revenue.
But civil war, economic collapse, fuel
shortages and a dearth of foreign cur-

Monday

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Wednesday

Thursday

Friday

Nairobi

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Kampala

Hi: 260C
Lo: 150C

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Dar-es-Salaam

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BD_Africa

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Lo: 150C

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Besides affecting its workers, the

closure of the brewery will affect
thousands of people in distribution chain.
rency have put SABMillers operation
in jeopardy.
Managing director Carlos Gomes
(above) said it was dicult to continue with our operations, amid basic
shortages of fuel to run generators and
hard currency to buy materials. The
brewerys entire operation runs on
diesel generators and all raw materials except water are imported because
South Sudanese farms cannot provide
commercial quality grain, sugar or

Index to companies

Weekly Weather Forecast

East Africa

Ripple effect

yeast in the quantities needed. We

depend on imports of raw materials,
Gomes said. We cannot locally source
enough diesel to keep our operations
running... and now we do not have
enough sucient forex to run operations and production.
Gomes said around 100 workers,
roughly a quarter of the total workforce, had been sent home on leave.
The scaling down has already
started, Gomes said, adding the rest
of the operation was in a very precarious position.
The brewery produced tens of
thousands of litres of beer a day at
peak production, as well as soft drinks
and other products. It is owned by
Southern Sudan Beverages (SSBL), a
SABMiller subsidiary.
Now operations in the vast warehouses are stalled, the latest loss in a
war that has left the edging nation
in ruins. -AFP

This index of businesses mentioned in todays issue of the Business Daily is intended to
include all signicant references to companies.
SAB Miller ....................... 2

Airtel ............................. 15

EATTA ............................ 19

SSBL ................................ 2

Unicef ........................... 16

Chase Bank................... 19

3mice .............................. 3

ECG................................ 16

NSE................................20

KARF................................ 3

PWC............................... 16

KCB................................20

NIB................................... 3

Windows....................... 18

CIC Sta nbic...................20

UN.................................. 12

Lenovo .......................... 18

Brent Oil........................ 21

Safaricom..................... 15

Motorola....................... 18

Barclays........................ 21

Thursday August 6, 2015 | BUSINESS DAILY

TOP NEWS
RADAR SCREEN

ADVERTISING Audience research has become the currency by which organisations, individuals buy and sell media

Tageted media
buying can aise
value of exposue
tions, over 10 daily newspapers and
over 50 periodicals.
Audience research measures how
many people are in an audience in
relation to radio listenership, TV
viewership, newspaper readership,
and increasingly web browsing. It includes practices that help media and
BY JOE OTIN
advertisers determine who is watching rather than just how many people
udience research has been
are watching.
a long-standing activity in
There are several ways of collecting this data credibly but the main
the media and advertising
ones are either passive or declaraindustries. It all began in the 1960s
tive. Passive measurement refers to
when BBC commissioned the rst
a system of being able to collect data
audience measurement survey, and
despite investing in it, the BBC chiefs
about individual or household media
of the day thought that they didnt
consumption using electronic means
and without the respondents having
need research because they already
to note or record their media conknew who was watching what.
sumption over periods of time.
That was a fallacy, as indeed the
This includes the use of People MeBBC quickly realised after the reters to measure television, Personal
sults were out that the audiences
People Meters to measwere not necessarily those
that they targeted with speure television and radio,
cic content, and that sevand software-based
eral other factors aected
data collection
In some makets mobile
viewership.
methods for radio, telthee ae puely evision and outdoor,
Fortunately,
that
among others.
strongly held view has
media-diven
A major benet of
now changed and audiassociations
ence research has become
these systems is that
focused on
the currency by which orthey do not require
ganisations and individuals
specic media memory or diligent
buy and sell media.
compliance as is the
channels
The landscape has
case in the declarative
changed tremendously
systems and are therefore considered more
from a past where most of
accurate and having ner details.
the media was government-owned
Declarative audience measureand monopolised to one that is liberalised with signicant increases in
ment refers to quantitative research
media outlets across the world, fragthat requires the respondents to state,
menting the audiences and creating
record or note their media consumpa need for science-based methods of
tion over time. It relies on the dilitargeting audiences.
gence of the respondent to ll in their
In Kenya, for example, there are 50
paper or electronic media diaries and
TV channels with digital broadcast
also on their memory.
licences, and more than 170 radio staWithout the electronic and passive

3 Mice Interactive Media CEO Ali Hussein Kassim speaks at a training programme offered by the International School of Adverting in Nairobi in September last year. SALATON NJAU
forms of measurement, declarative
audience research has proven to be
accurate but without the ner details.
It includes paper media diaries, laptop-based interviews, daily recall
telephone interviews, and mobile
text-based questionnaires.
Findings from audience measurement aect a number of major stakeholders, including the media, major
brands, government, and the advertising industry. That is why the data
provision is governed and commissioned by industry associations that
bring together the stakeholders that
are most aected by the research.
In some markets there are purely media-driven associations focused
on specic media channels, such as
BARB in Britain, which is an association of radio stations that commission and fund the national radio audience research. We see the same for
TV, print and the Internet in various
markets around the world.
In Kenya the audience measurement journey began with Steadman
and Research International coming
together and oering a research product to the market on their own initiative. This product grew into the major
form of audience data provided quarterly from eight provinces, purely on
a commercial basis.
It was not until 2007 when the industry stakeholders came together
to form the KARF (Kenya Audience
Research Foundation), and commissioned an improved study that
would provide a bigger sample and

continuous data collection that had

quarterly releases with monthly rolling windows.
This was the rst time ever that
the country had monthly data at a
standard rate, as a result of the steady
funding that came from the organised
joint industry association.
The immediate result was improved data upon which advertising agencies could use to plan their
media and demonstrate a return-oninvestment (ROI) to their clients, the
advertiser.
With improved metrics and demonstrated value, advertising expenditure began to grow in double digits
following many years of small, incremental growth.
This was demonstrated very clearly during the world nancial crisis
when the multinational advertisers
cut their advertising expenditure in
many parts of the world.
Kenyas total advertising spends,
however, continued to grow signicantly at the expense of many countries in Africa.
The reason? The large advertisers
could justify their spending where
they were able to have a clear view of
the value of media and calculate their
ROI which can only be done in a
country that has a media currency
with continuous measurement.
In 1999 audience research companies and other stakeholders in Africa came together to form PAMRO
(Pan-African Media Research Organisation) to create a uniform research

infrastructure in Africa for the development of the media and advertising

industries.
Despite their early entry, the crusade has been slow and every gain has
been hard-fought. To date 17 countries in Africa have some semblance
of audience research. Even fewer
still are able to provide continuous
media data.
The good thing is that new technology is providing a lower cost of
entry and a number of organisations
are lling the gaps, which is highly
appreciated by the multinational
advertisers who want to spend in
specic markets but do not have the
mandate to do so without any measurement data.
One of the major achievements of
PAMRO is getting an updated set of
Social Economic Segmentation for
Africa, which will be unveiled during
this years annual conference in Dar
es Salaam, Tanzania from August 2326, 2015. This measure really ts in
at the beginning of audience measurement in regards to knowing who
your audience is.
For the advertisers, they have specic target groups for their products
based on aordability to that group,
or in other words to understand the
level of auence of the target audiences so that they can plan to reach
them eciently with their advertising messages.
Mr Otin is the CEO, The Collective
Interactive Ad Agency

Zimbabwe cout postpones tial of Cecil the lions accused

Zimbabwean court on Wednesday postponed to Sept. 28 the

trial of a local hunter accused of
failing to stop American dentist Walter
Palmer illegally killing the countrys
most prized lion last month.
Theo Bronkhorst was arrested
last week and charged with breaching hunting rules when he helped

Palmer lure Cecil, a rare black-maned

lion, out of Hwange National Park and
shoot him with a bow and arrow, in
a case that caused international outrage online and put the spotlight on
big game hunting in Africa.
Bronkhorst has yet to plead in court
but has publicly denied any wrongdoing. He appeared for the short hear-

ing in Hwange, western Zimbabwe,

where his lawyer requested the adjournment.
Givemore Muvhiringi said another
attorney who was meant to argue the
case was unavailable and that the defense needed more time to prepare
for the trial.
If convicted, Bronkhorst faces a ne

of $20,000 and up to 10 years in jail.

Zimbabwe has called for the extradition of Palmer to face trial for
poaching. In reaction to the Cecil furor, three U.S. airlines have banned the
transport of lion, leopard, elephant,
rhino or bualo remains killed by trophy hunters.
REUTERS

Professional
Zimbabwean
hunter Theo
Bronkhorst
leaving the
magistrates
court after
proceedings
on poaching
charges. AFP

BUSINESS DAILY | Thursday August 6, 2015

TOP NEWS

ICPAK wants ogue govenment accountants named

ing about billions
of shillings and not
petty cash for oce tea, he added.
Dr Ngumi demanded that the Auditor-General, or any other person authorised to do so, release the names of
the accounting ocers involved so that
ICPAK could take disciplinary action
against them.
He said nance departments of the
institutions mentioned had accountants
and chief nance ocers who should be
held accountable for the auditing gaps
that are expressly unlawful.
Let them stop talking too much
and put faces to these people so that
we deal with them if indeed they are our
members. ICPAK will deregister them
and go to an extent of pressuring their
bosses to sack them, he told journalists
From Page1

at a press conference on the sidelines

of the institutes Enterprise Risk Management conference at the Mombasa
Continental Beach Resort.
On Tuesday last week, Auditor-General Edward Ouko released a report indicating the national government was
unable to account for Sh66.7 billion.
Key ministries including Health,
Transport and Infrastructure, Foreign Aairs, Education and the Attorney-Generals oce were among those
accused of failing to provide supporting documentation on how they spend
public funds.
Cabinet secretaries of the aected
ministries have since come out ghting, claiming to have provided relevant
documentation.
But speaking on Citizen TVs Cheche

show on Wednesday morning, Mr Ouko

said the said explanations had come
too late despite the clear timelines set
for audit.
Thats what happened in most
cases. People who really should take
charge are not taking the audit process
seriously and are only reacting at the
tail end. So these things come well after
Ive signed o, Mr Ouko said, adding
the report was out of his hands, having handed it to the ministries and
Parliament.
Any explanations, he said, would
have to be made to the National Assemblys Public Accounts Committee.
In a statement released Thursday
last week, Treasury secretary Henry
Rotich said that requested documents
were provided at the nal stages of the

audit review because the Kenya National Audit Oce (Kenao) gave accounting ocers very little time to respond.
But Mr Ouko said that the audit
process is a back-and-forth process
that takes months, including the release of the rst draft to the audited
entities giving them enough time to
explain the spending.
The Public Accounts Committee
has the statutory mandate to take a
review of the reports and report to
Parliament. The committee must take
a leadership role in the enforcement
of the Auditor-Generals recommendations, Dr Ngumi said.
The storm generated by Mr Oukos
report has seen some key ocials under
his oce threatened but he said, we
take it in our stride.

Helios exits Equity

with sale of nal
stake to NSSF
From Page 1

Helioss
shares investment to 360.9 per cent or 24.3 per
were seen as an overhang. They have cent compounded annually.
This makes it one of the highest resurprisingly managed to sell at a premium on the market (NSE) price, Mr turns earned by a PE rm in Kenya, underlining the lucrative earnings by such
Mwangi said.
Analysts said selling the shares in the funds that typically have a seven-year
open market would have ooded the investment horizon.
market with the stock and resulted in a
Mr Mwangi said that unlike Helios,
depressed share price that would work the new institutional investors, includagainst the other shareholders.
ing the NSSF, have a long-term commitThis is the rst time the NSSF has in- ment and are ready to raise their stake or
vested in Equity, a move that marks an provide additional equity nancing to
expansion of the provident
further grow the bank.
funds interests in Kenyas
We now have longbanking sector.
term
investors willing to
Right now we
The fund, which is
participate in future funddont need new raising, Mr Mwangi said.
owned by workers but controlled by the government, money but if we Right now we dont need
is a signicant shareholdkeep gowing at new money but if we keep
growing at the current rate
er in a number of lenders,
the cuent ate we could do a rights issue.
including National Bank
we could do a
The bank intends to
where it has a 48.1 per cent
venture
into nine new
stake, KCB (6.17 per cent)
ights issue
and Housing Finance (2.25
African markets by 2024,
per cent).
a move that will raise its
JAMES MWANGI
EQUITY CEO
The NSSFs acting manoperations to a total of 15
aging trustee Anthony
countries in Africa.
Omerikwa did not respond to our queThe expansion plan is expected to
ries by the time of going to press.
necessitate the raising of new capital
The Equity deal is estimated to be to fund the envisaged acquisitions or
worth at least Sh9.7 billion based on greeneld ventures.
Sh47 per share the lowest of the sevEquity is currently in the process
eral sell-o prices by Helios.
of acquiring 79 per cent of ProCredit,
This takes Helios earnings from a bank in the Democratic Republic of
the bank to a total of Sh44.1 billion, Congo that it plans to pay for through
quadrupling the Sh11 billion it paid in a share swap.
December 2007 to acquire the 24.99
Mr Mwangi said Norwegian sovereign wealth fund Norfund which was
per stake.
The London-based PE rm also col- the rst to buy a 12.22 per cent stake in
lected dividends totalling Sh6.5 billion Equity from Helios has expressed its
from Equity, taking its total return on intention to double its interest to 25

An Equity Bank branch in Nairobi. The

NSSF has invested in the bank for the
rst time, expanding the provident
funds interests in Kenyas banking
sector. FILE

Helios Equity exit

The PE rm had invested Sh11 bn in the
bank
Buyer

Stake
(%)

Amount
(Sh bn)

Norfund*

12.22

22.6

NSSF Uganda

2.44

4.5

Genesis (UK)

4.21

7.3

NSSF Kenya**
TOTAL

5.58

9.7

24.45

44.1

*Price based on NSE quotations

**Price based on Genesis deal (the
lowest)
SOURCE: HELIOS, BD RESEARCH

per cent. Norfund and a consortium of

partners concluded the purchase of the
stake in April, becoming the single-largest shareholder in the bank.
Helios did not indicate the price at
which Norfund bought the stake but the
amount is estimated at over Sh22 billion
based on Equitys average market price
of Sh50 in that month.
The PE rm in June sold a 2.44 per
cent of its stake in the bank to NSSF
Uganda for Sh4.5 billion or Sh50 for
each of the 90.3 million shares.
A UK-based fund, Genesis Investment Management LLP, also bought
a 4.21 per cent stake in Equity from
Helios in the same month for Sh7.3 billion or Sh47 for each of the 155.8 million shares.
The new institutional investors are
betting on Equity to maintain its strong
performance that has seen it emerge as
the second-largest bank in the country
in terms of assets and protability.

Founders of Equity have beneted

from its stellar performance that has attracted a host of new investors, pushing
up the share price and ultimately inating shareholders paper wealth.
Equitys Sh8.5 billion net prot in the
half year ended June was more than 24
times the Sh344 million it made in the
whole of 2005 when the then building
society converted into a commercial
bank.
The banks half-year net prot was
only second to KCBs Sh9.2 billion, with
both lenders having beneted from a
double-digit rise in interest income.
Equity, which revolutionised retail
banking in Kenya with zero-balance accounts, has 10 million customers and
has amassed Sh400.9 billion in assets.
The stellar performance has attracted
large institutional investors, including
the new ones that helped Helios harvest
its multi-billion-shilling investment.
Thousands of individual investors
have also bought into the lender, sustaining a long-term price rally despite a
massive expansion of its share units.
Equitys market valuation has risen
from Sh6.3 billion in 2006 to Sh144 billion currently, multiplying each shilling
22.8 times.
The bank now has 3.7 billion shares
following a 10:1 split in 2009 and the
creation of nearly 200 million shares in
2007 for issuance as bonus shares.
vjuma@ke.nationmedia.com

MPC holds
inteest ate
at 11.5pc afte
ination dip
BY CHARLES MWANIKI

The Central Bank of Kenya (CBKs)

monetary policy committee yesterday held the base lending rate at
11.5 per cent, citing the fall in July
ination and a stabilising foreign
exchange market.
In a statement, CBK governor
Patrick Njoroge, who also chairs the
MPC, said that the move is meant to
allow the economy to factor in the
previous two rate increases.
In its last meeting on July 8, the
MPC had raised the CBR for the
second time in as many months
as it looked to tame inationary
pressure and stabilise the shilling.
It had also raised the Kenya Banks
Reference Rate (KBRR) to 9.87 per
cent from 8.54 per cent.
The Committee concluded that
the measures taken in the previous
meetings were yet to be fully transmitted to the economy. In particular, the impact of the increase in
the KBRR takes eect from August
2015, said Dr Njoroge.
Dr Njoroge added that open
market operations and the sale
of foreign exchange by CBK have
stemmed the volatility in the shilling and resulted in tight liquidity
conditions, while current reserve
levels and precautionary facility
with the IMF oer a buer against
short-term shocks.
While some analysts had said
ahead of yesterdays meeting that
it would be prudent to allow for
the pass-through of the previous
hikes, others pointed at the continued weakness of the shilling as
reason for expecting a hike.
The shilling, while less volatile
in the past month, still remains under pressure and has continued to
exchange above the 100 units mark
to the dollar.
The current account decit is
also widening, although CBK expects support from rising diaspora
remittances and improved performance in tourism and agriculture.
CBKs main target is ination
rather than exchange rate, however, and the MPC said it that it
remains ready to employ the tools
at its disposal to maintain overall
price stability.

Central Bank of Kenya governor

Patrick Njoroge.

Thursday August 6, 2015 | BUSINESS DAILY

ECONOMY & POLITICS

NEWS I REVIEWS I ANALYSIS

Repieve fo EACC oces as Baclays to give youths

Sh15m
stat-up
loans
Uhuu ejects Bill poposals
BY STELLAR MURUMBA

REFORMS Mr Waqo

and his deputy Mubea

will be vetted afresh
within a year
BY EDWIN MUTAI

Ethics and Anti-Corruption Commission (EACC) top ocials got a one year
reprieve after President Uhuru Kenyatta rejected a Bill that would have forced
them to serve on acting capacity pending fresh vetting.
The agencys chief executive Halakhe Waqo and his deputy Michael
Mubea will remain in oce after President Kenyatta returned a memorandum on the Ethics and Anti-Corruption
(amendment) Bill, 2015 to Parliament
for reconsideration.
This is contrary to Section 17(2) of
the Act which requires the Commission to inform the secretary in writing
of reasons of the intended removal,
and shall give the secretary an opportunity to respond thereto in writing,
Mr Kenyatta said.
The proposed changes, he added,
also contradict Article 47 of the Consti-

Ethics and Anti-Corruption Commission chief executive Halakhe Waqo. FILE

tution which confers on all persons the
right to administrative action which is
expeditious, ecient, lawful and procedurally fair.
Kiminini MP Chris Wamalwa had
sponsored changes to the Bill. Mr Kenyatta recommended that Mr Wamalwas
proposals be deleted and replaced with
a new transitional provision.
Every person who immediately before the commencement of this Act as
an employee of the commission shall
continue to serve in his or her respective position... provided that the commission shall within a period of one
year after the appointment of commissioners under this Act... vet such
employee to ensure he or she is t and

proper to continue serving as such,

read Kenyattas new amendment.
He also proposed that the services of
any person who fails to meet the vetting
criteria established by the Commission
be determined in accordance with the
contract of employment.
This means that new commissioners who will take over oce will have
a free hand to vet afresh all secretariat
sta including Mr Waqo and Mr Mubea
within a year after taking oce.
The EACC has no commissioners
following the resignation of Chairman
Mumo Matemu in May, Irene Keino in
April and Prof Jane Onsongo in March
citing personal reasons.
emutai@ke.nationmedia.com

Barclays Bank has joined the list of

nancial institutions which have
created products to enable enterprising youth nurture their ideas
to fruition.
Managing director Jeremy Awori
(right) said the bank had restructured
its loan products to nurture and encourage best talents, ideas and skills
to make a change.
The banks product dubbed Zidisha, for instance, will see innovators
and startups acquire loans of up to
Sh15 million for growth and development without collateral.
Money is just a factor. Time,
energy together with an ecosystem
of experienced individuals is also
paramount, said Mr Awori yesterday at the launch of the University
of Nairobis Innovation Week. The
bank is one of the events platinum
sponsors, having injected Sh2.5 million to host it.
Konza Technopolis Development
Authority CEO John Tanui said Kenya
was moving in the right direction,
having doubled its research and development expenditure to two per
cent of gross domestic product.
We might not be ranked as Israel or Korea but we are in the right
direction. We are fast learners and

Innovation Week
An annual event by the University
of Nairobi to encourage youths with
innovative ideas to launch start-ups.

Konza City being structured by the

government is a key step to provide
ecosystem component in driving our
country to higher global ICT innovations, he said.
An American-Israeli journalist
and author, Saul Singer, who was one
of the panellists during the events
launch said the goal of innovation was
critical and Kenyans need to participate from whatever capacity.
Through creative tension, Kenyans need to challenge themselves
and the state to get a higher outcome
and make the country competitive in
the global market, he said.

Sonko sues ministy and

City Hall ove bumps
eected on Thika Road
BY VINCENT AGOYA

Nairobi Senator Mike Sonko

has moved to court seeking
a compulsion order against
the Transport secretary and
the county government to
remove bumps and rumble
strips erected along Thika
Highway.
The senator argues that
the bumps and rumble
strips cause unnecessary
trac jam.
His request through lawyer Harrison Kinyanjui to
have a trial court relocate
to the Survey of Kenya and
Homeland/Kenya Breweries
points along the highway for
impact assessment has
been upheld, but the presiding judge is yet to set a date
and time for the visit.

Mr Sonko claims that the

barriers have been a source
of headache for city motorists
plying the highway.
In executing the prayer
as sought, it is desirable that
the court designates a point
of assessment of the trac
ow at least 300 meters before the said bumps on either
side of the road, Mr Kinyanjui said.
He said the court needs
to assess the impact of trafc jams caused by the respondents inaction at the
highway.
The suit also names the
principal secretary of Transport, Kenya National Highways Authority, Kenya Roads
Board, Kenya Urban Roads
Authority and the AttorneyGeneral as respondents.

The EastAfrican will on August 8th 2015, carry

an informative feature focusing on;
Bridging the digital divide with high speed
internet 4G LTE.
How to minimize costs of 3G and boost usage
of data.
The Mobile Money opportunities and reaching
the unbanked.
Optimizing performance through Cloud
services and dedicated hosting.
Unlocking growth through broadband rollout
and affordable access.

BUSINESS DAILY | Thursday August 6, 2015

ECONOMY
& POLITICS
COUNTY BUSINESS

Galvanised sheet makes in 13pc gowth

ROOFING Manufacturers produce 70,103

First quarter galvanised sheet

production (tonnes)

tonnes in rst quarter, up from 61,930 last year

more costly, with the bulk of aspiring
homeowners in small towns preferring
Galvanised sheets factories have roared galvanised sheets.
back to life, recording a 13.1 per cent
The sheets have also become popuoutput growth in the rst three months lar for rain water harvesting in homes,
of the year as demand for aordable said Mr Oundo.
housing reverses last years
Tactile Roong Soludeclining trend.
tions prices shingles at
Manufacturers shrugged
Sh800 a panel, which
o sustained competition
measures 0.45 by 1.3
This gowth
from roong tiles and
has been fueled metres
shingles to produce 70,103
The cost of a galvaby inceased
nised sheet ranges betonnes of iron and steel
tween Sh304 per metre
sheets in the rst quarter,
investment in
up from 61,930 tonnes in a
aodable housing and Sh488, based on the
similar period last year, the
manufacturer and the
Kenya National Bureau of units with oong gauge (thickness).
Statistics indicates.
A slump in the rst
sheets
This growth has been
quarter of last year reSTEVEN OUNDO, NATIONAL
fuelled by increased investsulted in a 7.5 per cent
CONSTRUCTION AUTHORITY
ment in aordable housing
drop in production
units with roong sheets,
attributed to weak deCHAIRMAN
said Steven Oundo, the Namand.
tional Construction Authority chairThe rebound has positioned proman, adding that producers had re- ducers to gain from the property boom
sponded by ramping up their output. which has lifted sales of cement and
Mr Oundo said that though the use paint. Mabati Rolling Mills yesterday
of shingles and tiles has been on the rise said sales had grown faster this year
due to their aesthetic appeal, they are but did not wish to give details. ProBY NEVILLE OTUKI

UN body helps
elocate 2,969
efugees back
to Somalia
BY ALLAN ODHIAMBO

Steven Oundo, the National Construction Authority chairman: Growth in galvanised

sheets has been fueled by increased investment in affordable housing. DIANA NGILA
ducers have increasingly adopted rustfree sheets which come with an alloy
coat of aluminium and zinc which has
sharpened their competitive edge.

Deep-pocketed investors
Deep-pocketed investors and homeowners have, however, increasingly
opted for shingles and tiles since the
roong materials t within their description of high-end homes.
Working class Kenyans and high-

net worth investors have in recent

years poured billions of shillings in
real estate as they look to own homes
and earn returns respectively.
Kenya National Bureau of Standards
data shows that the volume of cement
consumed in the rst ve months of the
year rose to 2.26 million tonnes from
2.05 million in a similar period last year,
reecting the property boom.
notuki@ke.nationmedia.com

MPs split in bid to

change next polls
date to Decembe

Iigation body esists ministy

poposals that will clip its powes

BY EDWIN MUTAI

BY GERALD ANDAE

MPs were yesterday split on whether a

constitutional Bill seeking to push the
election date from second Tuesday of
August to third Monday of December
every ve years should be subjected to
a referendum.
A majority of MPs backed the proposed Constitution of Kenya (Amendment) Bill, 2015 sponsored by Ugenya
MP David Ochieng that seeks to shift
the date of the next General Election to
December 2017.
The Constitution stipulates that the
General Election will be held on the second Tuesday of August every ve years.
Speaker Justin Muturi is expected to rule
on whether amending the Constitution to
push forward the election date will require
a referendum.
He is also expected to rule on whether the Constitution allows MPs to make
amendments to a constitutional amendment Bill during its third reading.
Unlike in the old Constitution, the 2010
Constitution is not clear on whether MPs
have a window to amend a Bill seeking to
amend the Constitution.
Majority Leader Aden Duale and Justice and Legal Aairs committee chairman
Samuel Chepkonga asked Mr Muturi to
rule on the two matters.

A fresh row has erupted between

the National Irrigation Board (NIB)
and the Agriculture ministry over
proposed laws to govern implementation of projects worth billions of
shillings.
NIB ocials said the ministry
failed to consult them during the
drafting of the Irrigation Bill 2015
which seeks to give the Agriculture secretary control over their
programmes.
Among its highlights, the draft
Bill proposes the abolition of NIB
and creation of a new body known
as the National Irrigation Development Service to take up its roles.
The new agencys director, an
appointee of the Agriculture secretary, will have overriding powers over board members who include a chairman appointed by the
President.
The Bill also introduces new
qualications that require all serving employees of NIB to re-apply
for their jobs.
This Bill belongs to NIB and the
ministry would have consulted us
before making their own amendments on what we had already

A farmer irrigates her crop in

Nyanza. FILE
drafted, NIB chairman Sammy
Letema said.
Apart from roads and railway
networks, irrigation is one of the
sectors in which the government
has been investing a lot of money
averaging Sh9 billion annually
over the last 10 years. If the Bill is
adopted, the NIB director will have
powers to approve applications for
any irrigation projects, monitor
them and enforce conditions attached to licences for all projects a
function currently undertaken by
board members.
NIB will not be party to the Bill

that contains contentious clauses

that can be detrimental to the current sta of the irrigation body, Dr
Letema said.
The sharp disagreement between the agency and its parent
ministry is likely to further delay the search for a national legal
framework for irrigation.
In 2011, the same Bill was rejected by the NIB board of management
after the government failed to involve them at the drafting stage.
This is a government agency
and its re-organisation should not
result to job losses for the serving
employees, he said.
NIB has written to the ministry
of Agriculture over the matter as
it rushes against time to make the
necessary amendments before
August when it is supposed to be
adopted.
The Bill also proposes that counties will be in charge of small scale
irrigation schemes, a function that
is currently handled by the national government, if this draft Bill becomes a law.
The draft law says that irrigation schemes with less than 1,000
acres should be handed over to
counties.

Some 2,969 Somalia refugees have so

far voluntarily returned home since
last December under a UNHCRbacked support programme, easing
pressure on resources at the Dadaab
camp in northeastern Kenya.
The camp that is located on
the border with Somalia has been
stretched due to intermittent conict in the Horn of Africa country
and currently holds about 333,000
refugees.
Despite the fragile security environment situation in Somalia,
refugees have started to return, the
United Nations High Commission for
Refugees said yesterday.
Two planes carrying 116 Somali
refugees touched down at the Mogadishu International Airport, boosting
an initiative by a tripartite commission formed by UNHCR and the governments of Kenya and Somalia to
step up support for voluntary repatriation of refugees from the Horn of
Africa nation.
The UNHCR said between December 2014 and early August, some
2,969 Somali refugees have returned
to the districts of Luuq, Baidoa and
Kismayo, with its support as part of
the pilot phase.
More still have returned spontaneously without receiving assistance from UNHCR. Under the current agreement, assistance will be
provided to returnees to any area
of Somaliland, Puntland and South
Central Somalia.
UNHCR support includes standardised nancial and in-kind assistance to ensure safe and dignied return, as well as longer-term support
to help returnees re-integrate in areas
they once ed from.
The majority of the returns from
Kenya to Somalia will continue to take
place by road as has been the case
during the pilot phase, and only for
people with specic protection needs
will UNHCR facilitate airlifts, the UN
agency said.
Kenya is set to receive a Sh3 billion from UK to nance humanitarian
operations at Kakuma and Dadaab
camps even as it ghts to reduce the
number of refugees from South Sudan
and Somalia amid security concerns.
The UK government said the amount
would help deliver life-saving aid and
protection to more than 530,000 refugees living in the two camps.
The UK is committed to continuing to help Kenya in providing humanitarian assistance and protection
for refugees, Lisa Phillips, head of the
UKs Department for International
Development Kenya, said.

Thursday August 6, 2015 | BUSINESS DAILY

CORPORATE NEWS
NEWS I REVIEWS I ANALYSIS

Teaches sacco given ex-Meali bank deadline

BY GEORGE NGIGI

Kenya Airways non-executive chairman Evanson Mwaniki (left) and CEO Mbuvi Ngunze welcome Wangang Tan, the president China Southern Airlines, and other members of the Chinese delegation during the airlines maiden ight to Kenya
yesterday. COURTESY

Muthoka m wins China

Southens cago business
STRATEGY Businessmans Africa Flight Services has the largest

fresh produce handling facility at the JKIA aviation hub

BY SIMON CIURI

China Southern Airlines has hired a

rm associated with billionaire businessman Peter Muthoka to handle
its cargo business, making his company one of the biggest beneciaries
of the entry of the giant Asian carrier
into Kenya.
The airline, which landed at the
Jomo Kenyatta International Airport
(JKIA) yesterday on its inaugural
ight from Guangzhou to Nairobi,
is mainly targeting the increasing
number of Kenyan businessmen
who import goods from China.
Africa Flight Services (AFL),
which is associated with Mr Muthoka, will handle cargo for the Chinese
carriers customers.
Kenya Airways, which has had a
code-share agreement with China
Southern Airlines, yesterday announced that it had retained the
partnership but lost out on the freight
business even though it has its own
cargo handling unit.
We won this business purely by
merit based on China Southern Airlines assessment of our facilities at
the JKIA, said Mr Muthoka.
AFL has the largest fresh produce
and cargo handling establishment
at JKIA, where it competes with
national carrier Kenya Airways and
Swissport.
Both the Chinese airline and
Kenya Airways are members of the
Sky Team Alliance, which would

Mr Peter Muthoka. FILE

have made KQ the favourite to win

the freight business. AFL runs its
cargo handling business in partnership with World Flight Services
(WFS), a global ground handling
company with a presence in more
than 50 countries whose entry into
the Kenya market is expected to increase competition at JKIA where
Kenya Airways and Swissport have
dominated for many years.
Retention of the code-share
partnership is however a big boost
to Kenya Airways, which would have
lost on passenger referrals further
straining its nancial base given it
has been earning revenue through
ying the passengers booked by the
China-based airlines representatives
in Kenya. Kenya Airways recorded
a Sh25.7 billion after-tax loss for the
year ended March 2015, attributed to
poor management and competition
from other airlines.
China Southern Airlines previ-

ously relied on its local marketers

for booking and would later transfer the passengers to Kenya Airways
and share the revenue generated. The
referrals will however drop with the
direct ights by the Chinese carrier,
though it will only y three times in
a week.
We have had code-share agreement since 2009 and we extended
this to include Lusaka, Sydney, Melbourne and Path in an extended
partnership agreement signed in
May 2013,said Kenya Airways managing director Mbuvi Ngunze when
he received the airline yesterday at
JKIA. Under the new arrangement
signed yesterday between Kenya Airways and China Southern Airlines,
customers who wish to x their travel
dates when the host airline is not ying can now use Kenya Airways to y
from Nairobi to Guangzhou.
China and Africa have a time
honoured history of friendly relations and close ties and both sides
have achieved remarkable results
in cooperation of all elds, said
China Southern Airlines chairman
Si Xianmin
We are happy to open our second direct air route to Africa, having
launched our rst between Shenzhen
and Mauritius last year. We hope our
additional ights will provide our
guests with convenience, besides
increasing the number of business
and leisure travellers into Africa and
Asia, added Mr Xianmin

Mwalimu Sacco has six months to

regularise its ownership in Equatorial
Commercial Bank in compliance with
the Central Bank Act which bans nonbanking institution from holding more
than 25 per cent shares of a bank.
The sacco acquired a 51 per cent
stake of the bank last year at a cost of
Sh1.6 billion, with an agreement to acquire an additional 24 per cent this year
through its nominee Mwalimu National
Holdings.
The Cabinet Secretary for the National Treasury exempts Mwalimu National Holdings from the provisions of
section 13 (1) of the Banking Act, with
eect from January 31, 2015, for a period
of one year, in connection with holding of
ordinary shares in Equatorial Commercial Bank Limited, reads a gazette notice
signed by the Cabinet secretary.
Section 13 of the Act restricts owner-

ship of share capital of a bank, except

non-operating, holding companies approved by the Central Bank, to no more
than a quarter of the bank.
The government or foreign banking institutions are also exempted from
this law.
Mwalimu intends to sell 40 per
cent of Mwalimu National Holdings,
the vehicle used to invest in ECB, to its
over 60,000 members. The sale would,
however, still leave it with a 35 per cent
shareholding.
Mwalimu Sacco bought the stake
from businessman Naushad Merali who
was also under pressure from Central
Bank to comply with the ownership requirements which caps individual ownership of a bank at 25 per cent.
The deal gave Mwalimu Sacco ownership in Equatorial Insurance Brokerage
and an indirect interest in Fidelity Shield
Insurance having acquired the stake in
Equatorials holding company.

EACC opposes Pattni ms

Sh140m legal fees demand
BY BRIAN WASUNA

The anti-corruption watchdog has asked

the High Court to stop two rms previously associated with billionaire businessman Kamlesh Pattni from demanding Sh140 million from it in legal costs
incurred in a previous civil suit.
The Ethics and Anti-Corruption Commission (EACC) led the application after Marshalls East Africa and Delphis
Bank (now Oriental Commercial Bank)
slapped it with a combined Sh140 million claim for legal fees the High Court
ordered it to pay to the rms.
EACC moved to court in 2003 seeking
to seize ownership of 14 rms it claimed
Mr Pattni he had bought from convicted
fraudster Ketan Somaia with proceeds
of the Goldenberg scandal.
The agency, however, holds that the
suit was led in the public interest, hence
it should not be condemned to settle the
legal costs.
The watchdog withdrew the suit in
2008 following negotiations with Mr Pattni and the government. The two rms
had told the High Court in an application
that their legal bills were high because
they had to protect their reputations.
But EACC says the demand is too high
considering the suit was only aimed at
their shareholders.
The suit was led in the public interest to trace and recover property looted
in the Goldenberg scandal. There was no
allegation that Marshalls and Delphis
themselves engaged in the rip o of public coers. The reputation of the compa-

Businessman Kamlesh Pattni. EVANS HABIL

nies were not at stake, says EACC.
Marshalls has in its response, however, defended its Sh60 million claim,
arguing that it spent a lot of money ling
suits that eventually led to the removal of
receiver managers that the government
and CBK had appointed to run it.
The court had granted temporary
orders to the government allowing it to
take over the 14 rms operations until
the suit was concluded.
Delphis says the legal matters involved
were complex, and that it spent a lot on ling volumes of documents hence its Sh80
million demand is warranted.
It took a protracted battle and a
plethora of applications to have the
receiver appointed removed from the
management of Marshalls. EACC ignored
the fact that Mr Pattni and Mr Somaia
did not own any shares in Marshalls and
proceeded to make the outrageous claims
against it, says Marshalls.
Justice Joseph Sergon will rule on the
matter on October 2.

BUSINESS DAILY | Thursday August 6, 2015

CORPORATE NEWS

Kitengela businessman sets up Nakuu cement m

GROWTH Firm which opened factory in Athi River

5.05 million tonnes as a result of new

players entering the industry.
Cement production in the country
has consistently outpaced consumption
which stood at 4.26 million tonnes and
5.19 million tonnes in 2013 and 2014
respectively.

in June seeks approval to set up another near Nakuru

and Nakuru. If we secure regulatory approvals in time, construction will begin
A Kitengela-based quarry operator is in December and the factory will begin
stepping up his investments in the ce- operating by November 2016, Kishor
ment business with the planned con- Varsani, the rms managing director,
struction of a Sh428 million plant in said in a telephone interview.
Nakuru, the second such project in the
Financing of the new cement facpast one year.
tory is being wholly provided
by local banks whose identity
Karsan Ramji & Sons
has sought regulatory apI cannot reveal.
If we secue
proval to set up a cement
Regulatory lings deposegulatoy
factory in Engashura
ited at the National Environarea, seven kilometres appovals in time, ment Management Authority
indicate that the rm
from Nakuru town.
constuction will (Nema)
plans to install the new facThe factory will have
an average daily pro- begin in Decembe tory on a 1.5 hectares piece
duction capacity of 700
of land.
KISHOR VARSANI
This is part of the 17.4 hectonnes.
MD, KARSAN RAMJI & SONS
tares the company owns along
Karsan Ramji & Sons
the Nakuru- Nyahururu highrecently completed construction of a similar-sized cement fac- way, land on which one of its three quartory in Athi River and in June began ries sits. The plant will use imported
selling cement under the brand name clinker while pozzolana and gypsum
Ndovu to customers in Nairobi and its will be sourced locally from its quarries.
environs.
The three raw materials are ground and
The companys main line of business mixed to produce cement.
has been production of ballast at three
The plant will input cement into
quarry sites it owns in Kitengela, Kili the Kenyan market and have the eect
BY MUGAMBI MUTEGI

Oversupply of cement

A man carries a bag of cement from a Nairobi outlet. Karsan Ramji & Sons planned
plant will produce 700 tonnes of cement
per day. FILE
of healthy competition in the sector,
promising more competitive prices, the
rm says in its regulatory lings. Karsan Ramji & Sons new facility will see
them go up against established players
such as Bamburi, East African Portland
Cement Company (EAPCC) and ARM
Cement who together control 77 per
cent of Kenyas cement market.
Nigerian tycoon Aliko Dangote plans
to build a Sh40 billion cement plant in
Kitui, while Indian conglomerate Sanghi Group plans to construct a Sh12 billion cement plant in West Pokot. Ken-

Cement production in the country has

consistently outpaced consumption

yas cement production last year stood

at 5.88 million tonnes, having grown
16.4 per cent from the previous years

#)&%'$( "&$+,*&

Jamii ecods fastest gowth

in ace fo Intenet customes
BY OKUTTAH MARK

#)&%'$( "&$+,*&
#)&%'$( "&$+,*&
#)&%'$( "&$+,*&

Cement production in Kenya

(million tonnes)

Everybody knows that there is currently an oversupply of cement in the

Kenyan market, said Mr Varsani.
However, our decision to diversify
our business into this sector is based on
the belief that demand for cement will
soon outpace supply. This is in line with
the expected growth of the economy
and construction industry.
Karsan Ramji & Sons maiden Athi
River plant is located about 500 meters from the factories of its two rivals;
Mombasa Cement and Bamburi.
Other competitors in the neighbourhood include Athi River Mining and
East Africa Portland Cement.
The plant which recently started
operations was initially to be installed
in Kitengela but residents opposed the
project citing health and environmental
concerns, forcing the investor to relocate the venture to Athi River.
pmutegi@ke.nationmedia.com

BUSINESS

PROCESS

OUTSOURCING
(BPO) In East Africa
The EastAfrican will on 15th August, 2015 publish a feature focusing on
Business Process Outsourcing (BPO) & Information Technology Enabled
Services (ITES). This feature will among other factors highlight:

The benets of BPO & ITES

Functions that can be outsourced
Types of Business process outsourcing
Emerging challenges in the BPO & ITES
industry

To advertise contact:
Duke, E-mail: dmonda@ke.nationmedia.com
and Cell: 0722 897 417
Linet, E-mail: larandi@ke.nationmedia.com
and Cell: 0721 620 555

Jamii Telecommunications
gained the highest number
of xed Internet customers
in three months to March, according to the latest lings by
the industry regulator.
The telcos growth came
at a period that saw a major- Wananchi Group chief executive
ity of the top 10 service pro- Richard Alden. FILE
viders in the category either
lose subscribers or post a at Internet services by customer
numbers.
growth rate.
The CA reports says that deThe quarterly report by
Communications Authority mand for xed broadband is
of Kenya (CA) for between driven by, among other factors,
January and March shows the governments decision to
that the rm that owns Jamii oer its services online and the
Faiba gained most customers adoption of e-learning, which
(4,962) in the period under re- requires dedicated Internet
view raising its total subscriber services mainly through bre
base to 7,536.
optics connectivity.
This gain has enabled Jamii
The evolution of advanced
Telecoms to close the gap be- services on e-platforms such as
tween it and Safaricom, which e-government, e-commerce, ehas 8,192 subscribers in this learning and IPTV/Triple Play
market category and is rated could be attributed to the defth among the service pro- mand and thus the need for
growth in bandwidth capacity,
viders.
Wananchi Group-owned reads part of the report.
Safaricom is rated behind
Zuku retained its position as
the largest operator of xed AccessKenya that has 11,502

subscribers and whose gures

remained at compared to the
previous quarter. AccessKenya,
however, lost 0.4 per cent of its
market share to 9.6 per cent.
Telkom Kenya was rated
third with 12,083 subscribers
from 12,002 in the last quarter,
however, it a lost 0.4 percentage points in its market share
to reach 10.1 percent.
Liquid Telecom was rated
second with 18,250 subscribers translating to 15.3 percent
share, having lost 0.4 percentage points in the quarter.
Zuku maintained the market leader position although
its number of subscribers remained at at 55,936.
The pole position arms
our status as Africas leading
entertainment and communication service provider in
line with our objective to be
a world-class company and
the rst choice for entertainment content and communication among consumers in
key markets around Africa,
said Wananchi Group CEO
Richard Alden yesterday in a
statement.

Thursday August 6, 2015 | BUSINESS DAILY

IDEAS & DEBATE

OPINIONS I REVIEWS I ANALYSIS

President Uhuru Kenyatta greets Kenyans in the diaspora during an investment conference. BILLY MUTAI

Attactive investment options

can unlock moe diaspoa funds

POTENTIAL Projections show that Kenya abroad can send home Sh68 billion per

month if the state makes the investment environment appealing to them

MARTIN DIAS

he Kenyan diaspora has tremendous potential to bring in more

remittance inow if all factors
are spruced in creating an enabling
environment for investment.
Kenya, just like any other country,
has a good number of her citizens living in other countries or continents,
estimated to be around three million
or slightly more. They are mostly professionals in specialised elds like
medicine, accountancy and audit,
legal, banking and education, among
others. Estimates reect at least 80
per cent are in the employment sector while the remaining are students.
This means that close to 10 per cent of
the population is making a living beyond Kenyas territory or undertaking
their university education.
Looking at the 2014 numbers derived from the Kenya National Bureau
of Statistics, we note the diaspora remittance contributed around three per
cent of the total gross domestic product (GDP), reecting a wide gap when
compared with the other sectors, with
agriculture leading at 27 per cent, manufacturing (10 per cent) , real estate (7.8
per cent), wholesale and retail (8.2 per
cent), among other sectors. Tourism
is not worth mentioning here as it is
lingering on a single digit.
The latest statistics on diaspora
remittance by the Central Bank of
Kenya (CBK) for June shows an improved amount of Sh13.6 billion was
remitted back home. This was 17.1 per

cent rise from last years Sh11.6 billion

could be inhibiting them from sendand is attributed to increased inows
ing more?
from Europe and North America. The
If approximately 80 per cent of
June gures are also 5.3 per cent higher
the diaspora population is working,
than the May remittances which stood
it means a majority are either sendat Sh12.9 billion. Of signicant note is
ing a paltry amount or not sending at
that inows from North America acall. Normally, the majority of Kenyans
abroad send money to their families
counted for close to half the amount.
and relatives to supplement their inThe 12-month cumulative inows
come or to cater for other needs and
to June increased by 10 per cent to
Sh149.2 billion from Sh135.7 billion in
emergencies like medical bills, school
the year to June 2014.
fees and general consumption. Sometimes people send it out of guilt, someThe 12 months average ow also
times it is because the relatives keep
sustained an upward trend to Sh12.4
calling and asking for
billion from Sh11.3 billion during the same
money.
Out of this, it is clear
period. The monthOut of this it is
to see that the diaspoon-month
increase
clea to see that
ra has no major attracpresents hope for the
tion that pushes them
shaky shilling which
the diaspoa
to send more money
has maintained its
has no majo
or to invest locally. To
weakness against the
attaction that
grow the current state
dollar, staying above
of remittance, there
the Sh100 mark for
pushes them to
is need to make the
the past month. One
send money o to
country more favourwonders whether this
invest locally
able to attract more
could be the maximum
investment. We are
potential of the Kenyans abroad or can it
dealing with three
be more?
million Kenyans, most of whom are
highly educated and exposed to other
Mathematically, it would mean
that; on average a Kenyan living in the
continents lifestyle and investment
diaspora sends around Sh5,054 ($50)
opportunities.
in a month. This is derived from takThey do lots of research before ining the latest inow remittance which
vesting into a home or in stocks and
was Sh13.6 billion and dividing with
shares. Consider the example of our
national airline Kenya Airways which
the estimated three million Kenyans
has made a whooping Sh25 billion loss
abroad. The Sh5,054 per person is riand is on the verge of collapse. Would
diculously very low. It is for this reason, I have been asking myself what
the diaspora invest in shares in this

company? What if a home in South

Africa costs half the amount of a home
in Kenya, then wouldnt they opt to
buy one in South Africa or elsewhere
much cheaper?
We must oer competitive investment opportunities at home, with
the right market pricing, conducive
environment and legislation. We must
make the investment climate attractive
to everyone and why not begin with
the diaspora.
Now, if we achieved this objective
and the monthly remittance per individual increased to Sh10,109 ($100) a
month, then this would mean the inow would double to Sh27.2 billion if
we took the June Sh13.6 billion gure. I
would put our expectation at Sh25,000
($250) per person per month which
would take our monthly inow to Sh68
billion. Would this not have a signicant eect on our exchequer?
The Obama visit is a boost to the
diaspora in the US and we should see
more interest arising from that region.
Kenya was on the spotlight all over the
world and showcased herself at one
of the highest level seen here at home.
Everything seems to have worked perfectly well for Kenya during the visit
amidst the potential fear of an AlShabaab attack.
One of the many factors that the
government should also consider to
increase the inows from the diaspora
is to build good relationship with this
community. In the past, we have seen
the diaspora seeking legal action to
protect their rights. Fundamental
rights like voting in Kenyas election
cannot be overlooked. There should
therefore be a round table discussion
on how this process can be carried out
with both parties coming to an understanding. This will raise the condence
of the diaspora community in the government as they will have the right to
participate in deciding the destiny of
their country.
More remittance could also be experienced through showcasing the
products and investment opportunities available locally. Following the recent conclusion of the Global Entrepreneurship Summit where individuals
and rms showcased their ideas and
products, it is important to advertise
these products to the Kenyans abroad
so they can identify any business idea
that lacks funding and grab the available opportunity. This could benet the
entrepreneurs and oer a good return
on investment for the diaspora.
From the case put forward and gures highlighted in this discussion,
we can conclusively agree that if we
positively put our mind and eorts
to address these challenges we can
break the barriers and bridge the gap
in increasing our diaspora remittance.
I believe yes we can.
Dias is the Group chief executive ofcer, FAPCL Group
email: md@fapcl.com

Other Voices
Donald Trump
US presidential aspirant

Bill Schneider (Reuters)

Thirty years ago, Ronald Reagan declared,
Its morning in America. Now its crazy
time in America. Senator John McCain
was the rst to notice. After Donald Trump
held a massive rally to scapegoat illegal
immigrants, McCain said, (He) red up
the crazies. There must be a lot of crazies
running around. The latest polls all show
Trump as the frontrunner for the 2016 Republican nomination.The craziness in the
Republican race is not conned to Trump.
Pierre Nkurunziza
Burundi President

Carina Tertsakian (Guardian)

I was last in Burundi in June, just before
the controversial elections. The mood
was gloomy. There were frequent clashes
between police and demonstrators in
Bujumbura.Burundi seems to be heading
into an increasingly uncertain and chaotic
situation. The day before Mbonimpa was
shot, the former head of the intelligence
services, General Adolphe Nshimirimana
a powerful gure and close ally of Nkurunziza was assassinated in the capital.
Benjamin Netanyahu
Israel Prime Minister

Etgar Keret (New York Times)

Im old enough to remember Rabin Square,
when it was still called the Kings of Israel
Square, full of demonstrators on many occasions. Have the young men and women
who failed miserably in their struggle for
social justice given up hope and lost their
faith in the ability of this democratic tool
to have an impact? Have the people on
the left who come to sweat in this square
every time a new injustice is perpetrated in
our country begun to tire?

10

BUSINESS DAILY | Thursday August 6, 2015

EDITORIAL & OPINION

Published by the Nation Media Group, Kimathi Street, Nairobi

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

Ochieng Rapuro: Managing Editor
P.O.Box 49010 GPO Nairobi Telephone: 254 20 328 8104 Fax: 254 20 214849
Email : bdfeedback@nation.co.ke www.bdafrica.com

AGs advice invaluable

when dafting laws

he Attorney-General is the
chief legal advisor to the
government and its agencies, a duty rearmed in the Constitution. However, a number of
government agencies have tended
to overlook his input in important
matters, claiming Prof Githu Muigais role is merely advisory that
is only to oer an opinion.
That is where they are wrong.
And if anything goes wrong in the
future, there is no reason why
culpable ocials and ministries
should not face the music.
In this newspaper yesterday, we
carried a story where the AG has
advised the ICT secretary to withdraw proposed regulations seeking
to have Safaricom declared a dominant player on account of market
share. The regulations are before
Parliament and the AG says they
were drafted by the ministry and
the Communications Authority
without his input, which he says is
contrary to laid down procedures.
The Competition Authority of Kenya, which deals with such matters,
was also left out of the picture.
The issue here is that the matter
at hand is quite weighty and is at
the heart of the long-running rivalry between two of Kenyas leading
telecoms rms Safaricom and Airtel. What all the players should appreciate is that while the two telcos

are the most visible players when

it comes to claims of dominance
which we leave to the competent
authorities to determine there are
other sectors where similar claims
can be made.
If the law sails through Parliament as it is, there is no reason why
players in other sectors should not
draw from them. That is why we
support the AG on the need to
pass laws with wide consultation
of the stakeholders to avoid shorttermism or insidious targeting.
We equally wonder why the two
agencies that are well aware of
the law-making process thought
it wise to bypass these two crucial
institutions.
In the past we have seen other
government institutions making
similar blunders. The Security Bill
that was passed into law carried
with it similar claims of the AG not
being involved. The consequence
was that it was contested by the Opposition in court and some of the
clauses were struck out. The matter
is yet to conclude but the government will pay legal costs that could
perhaps have been avoided.
Agreed, the ministry and CA
could be rushing to rectify a situation that might not be conducive
to competition. But let all relevant
authorities be involved while carrying out such tasks.

MPs hamed public inteest

eports that Jubilee MPs

ganged up to defeat the
Public Accounts Committee
report on Deputy President William
Rutos alleged hiring of a luxury jet
to travel to West Africa is absurd in
many ways.
It is the clearest symptom yet of
the moral vacuum that has come to
characterise one of the key institutions of governance in Kenya today
Parliament.
In summarily using their numbers to throw out the report, the
lawmakers have sent at least two
clear messages.
One is that on the oor of the
house, MPs are voting machines
who will act to serve party, or self
interest regardless of the merits of
the issue at hand.
Besides, the fact that the watchdog Public Accounts Committee
members sat for days earning fat

sitting allowances to compile a report whose contents very few MPs

cared to read is most worrying.
That this action comes on the
heels of a similar one in which the
MPs rejected President Uhuru
Kenyattas nomination of Monica
Juma to the position of Secretary to
the Cabinet sets a bleak precedent
for the public interest.
Our argument is not that Parliament was under obligation to
adopt the report. It is rather that a
report that accuses such high ranking public ocial of misusing millions of shillings in public funds
deserved better treatment not the
summary and shabby treatment it
got on the oor of the House.
The message so far is that our
Parliament is bereft of principled
politicians with the courage to
break ranks with their parties in
the pursuit of public interest.

To comment...
The editor invites comments on our content and topical issues. Please
include your full names, telephone number and address in your letter.
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My bank account is a joke... The only serious account I have is

my Facebook account.

Technology changing way we do business

BITANGE NDEMO
DISRUPTION

n just a decade, the discourse of

what we used to know as business
or enterprise has changed. In virtually all sectors, technology is playing
a unique role whose eect is to make
entrepreneurship and technology synonymous.
Most people expected the recent Global Entrepreneurship Summit to address
issues on what we used to know as entrepreneurship or doing business. Instead,
the debates focused on high-tech applications and their commercialisation. Welcome to the future of business.
Not too long ago, musicians made
money from sale of their physical albums. That changed with the entry of
online music streaming platforms such
as iTunes, Google Play, Pandora, Grooveshark, MySpace and more.
Technology is changing the way
music stars are created, with more consecrated through eyeballs, and instant
voting. Online platforms mean artists
are no longer conned to live performance to make money, and those who have
embraced this disruption are also using
it to promote themselves. Some of the
platforms pay little but nothing near to
yesteryear when top performers signed
contracts with global music entertainment houses like Sony for distribution.
Behind the scenes, there is a race to de-

ne the future of music business.

After years of trying to protect the
lm industry from emergent free online
technologies, lm makers seem to have
caved in. Several streaming platforms
have emerged like Amazon Prime that
are changing business models across the
world. It is now more dicult to target
teenagers with television adverts since
most are busy on the free online music
and lm platforms.
Now if you need this audience you will
have to use platforms such as YouTube.
These developments can devastate future business of local ad agencies.
The disruption of the banking sector
is ongoing. The Bank of England licensed
a startup virtual bank, Atom Bank, as the
rst alternative to traditional banking
services. The startup, which has been in
operation for one year, went through nal regulatory approvals before launch.
In Kenya where the diusion of mobile
money technology has confounded critics, Atom Bank would nd a ready market. The entry of such disruptors will
precipitate other businesses such as
biometric security systems and change
how we do banking in the future.
The future of transport business is
here. Uber and Easy Taxi are in Kenya
and disrupting the sector in ways we
never imagined. The time when one
could exploit unsuspecting passengers
is gone. The convenience of planning
your trip without arbitrariness and
uncertainty makes the experience of
these new technologies more appealing. In the not too distance future, we
shall see problems associated with the
chaotic matatu sector dealt with using
technology. When this happens, more

VIEWS FROM ABROAD

people will invest in the sector that is

dominated by criminal cartels. The
business of transportation will change
as ineciencies are eliminated.
Perhaps the greatest disruption will
be felt in education. The sector has the
most problems that technology can easily address. The lethargy in public education will soon be a thing of the past.
Online content delivered by dedicated
tutors who will replace indolent teachers. It is not a question whether this will
happen but when. Some students at university already use Massive Open Online
Courses oered by leading universities
to supplement their daily lectures, but
this will soon disrupt existing learning
structures.
Other sectors such as health and agriculture will experience similar disruptions. From driverless cars to big data to
the future of the workplace, the future
of business is changing. It may be dicult to accept new technologies in our
traditional environments but there may
be no choice. The sun will not stand still
and it is inevitable that technology will
be more ubiquitous. It is easier to face
the facts that we are living in a changing world and adapt. The alternative is
that failure to change could be a license
to live uncomfortably since everything
around us is evolving. We may as well
be the change.
Alan Watts, a British-born philosopher, once said, The only way to make
sense out of change is to plunge into it,
move with it, and join the dance.
The writer is a technology enthusiast
and an associate professor at University
of Nairobis Business School

Opinions fom aound the wold

Act on Kigali transport woes

Re-examine death penalty

Deal rmly with doping in sports

The new Kigali public transport master plan, unveiled

in 2013, has not eased traffic. Did the city authority err
in awarding contracts under the plan to a handful of
companies which in effect created a quasi monopoly?
Why have the
THE NEW TIMES
KIGALI
challenges that
have for long characterised public transport in Kigali
remained unsolved?
Relevant government agencies should step up
supervision and regulatory tools to make sure that
city dwellers and travellers get fast and reliable public
transport services.

The death penalty undermines the wholesome

purpose of punishment. Imposition of the penalty
negates the other three purposes of punishment
rehabilitation, reconciliation and restorative justice.
Indeed, punishment in
DAILY MONITOR
KAMPALA
Uganda has
traditionally focused on retribution and deterrence.
More emphasis should be put on rehabilitation,
reconciliation and restorative justice. Rehabilitation is
aimed at reforming the offender to prevent recidivism.
Our lawmakers should consider replacing the death
penalty with long-term imprisonment.

Half the joy for sports fans in watching the worlds best
athletes is to see them challenge the presumed limits
of the human body. So when doping or other unfair
material enhancements are used, the thrill is gone.
This is why world
CH SC MONITOR
BOSTON
sports bodies need
to take seriously the latest allegations of doping in
Olympic sports. With the next Summer Olympics
coming in 2016, world sports bodies will need to sort
out the truth in these allegations in order to keep
the trust of sports fans. Breaking limits in endurance
sports should not be a contest of drug use.

Thursday August 6, 2015 | BUSINESS DAILY

11

EDITORIAL & OPINION

Euo zone doesnt need a political union

HUGO DIXON
INTEGRATION

he Greek crisis has given

new life to a supercial argument: that the euro zone
isnt working because its monetary
union hasnt been accompanied by
scal and political union.
Frances President Francois
Hollande has called for a euro zone
government, with its own budget,
which would be accountable to the
people via a new euro zone parliament. Pier Carlo Padoan, the Italian
nance minister, has backed the idea
also advocating a euro zone unem-

ployment scheme.
The European Unions so-called
ve presidents have given nuanced
support for these ideas, calling for a
euro zone treasury and a common
macroeconomic stabilisation fund
to help countries weather shocks.
The ve presidents rst want
euro zone countries to converge
towards best practice on boosting
competitiveness. They then want
legally binding rules to ensure they
stay competitive.
Such an ambitious centralisation
of economic power is neither needed nor desirable. Nor is it politically
achievable.

Letters

Creating a common euro zone

nance ministry, government, parliament and budget would require a
new treaty. This would need unanimous approval of the 19 countries
in the bloc, and probably of the nine
other members of the EU, such as
Britain, which dont use the euro.
Doesnt this then mean the euro
zone is doomed? If 19 countries share
the same currency and lose the ability to devalue when they hit problems, it might sound like they also
need a common treasury to cushion
the blow, and a common government
and parliament to give legitimacy to
their actions.

Not so fast. The crisis of recent

years has two main causes: lack
of competitiveness and excessive
government borrowing. There are
better ways to address problems of
competitiveness than by agreeing a
treaty to mandate it; and it is already
clear that treaties requiring scal rectitude have been pretty useless.
If investors knew that governments could go bankrupt, they would
be more cautious about lending to
them in the rst place. The discipline
of the markets would replace the discipline of the bureaucrats.
Hugo is a columnist and entrepreneur

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

Poor performance of companies cause for worry

e have recently witnessed the collapse or

declining performance
of previously robust companies
such as Mumias and Kenya Airways
while several others have been in
the news over unanswered questions regarding their protability.
In the corporate world, the
business environment changes
quickly. In some instances, the
changes occur by the hour placing
new demands or opportunities on
management. Industries such as
airlines and tourism experience
more turbulences because of the
volatility of the environment they
operate in. Problems can come in
wide-ranging guises, including fuel
prices, competition, a uid market
or fast changing technology.
The CEOs of such companies
must be on their toes, continuesly
scanning the business environment
and developing new strategies.
Strategies and ideas developed in
2014 may prove ineective in tackling challenges or taking on business opportunities of 2015. Generation of new ideas from both internal
and external sources ensures the
companies strategies remain relevant and with a realistic chance
of achieving set objectives.
Insistence on repeating failed
strategies such as hedging fuel
ends up becoming more costly than
storing physical fuel reserves.
Majority of CEOs or departmental heads after achieving success
in the rst years of being at the
helm make the mistake of taking a laid back approach to running
the company. They treat their jobs
as political positions and appoint
friends and tribesmen to key positions, sometimes with grave consequences such as stagnant growth,
and lack of innovativion and com-

Kenya Airways CEO Mbuvi Ngunze (right), Group Finance Director Alex Mbugua and corporate communications maager Wanjiku Mugo during the release of the Groups nancial results for the year ended March 31 at the InterContinental Hotel last week. FILE
petitiveness.
The injection of fresh ideas ceases and the company is allowed to
operate on auto-pilot with lots of
energy devoted internally to squabbling, politicking and advancing
personal agendas. Changes are
forced rather than being agreed
upon as personal and vested interests take precedent. Those who
have the ability and experience
to make things move are either
sidelined, shown the door or their
ideas muzzled as authoritatian
CEOs drive the rms into self-destruction.
In order for a company to guarantee its survival its important
that the terms of CEO be limited. I
would suggest two terms of three
years each. A CEO who insists on
managing a company for 10 years
is doing himself or the company a
disservice. A company that does not

experience any meaningful change

after a new CEO has been at the
helm for 18 months may need to
check whether he is doing the right
thing, or has the right people, or is
employing the right techniques.
Shareholders and businesses
must interrogate performances of
CEO before signing renewal contracts. Extending their contracts
merely because they have been
doing a good job is not a guarantee the future of the company will
be better.
It should not just be an issue of
numbers feedback from customers, suppliers and sta can provide
a good health check on a companys
performance and eectiveness of
its strategies to meet the challenges
of a fast-moving business world.
JOE MUSYOKI
Kitengela
*****

he poor performance of two

of Kenyas blue chip companies should disturb our collective conscience as a nation. First
it was Mumias Sugar, Kenyas giant
sugar miller which was brought to
its knees after massive looting by
former managers and directors
who are well known but walk free
as if they did no wrong.
Sadly, the issue was reduced to a
small, ethnic aair - a Luhyia aair.
Geographically, the rm is situated
in the land of Mulembe but it is a
national asset. Why trivialise a rm
of such economic signicance?
It has not taken long before the
pride of our nation our national
carrier has come crashing down.
As usual the same script of silence
and inaction is being played.
Taxpayers are at a loss seeing
their government not taking action
against economic saboteurs. They
are hoping the Kenya Airways saga
will trigger decisive action from
the authorities.
BENARD AMAYA
via email

Couption is a
seious theat to
ou democacy
NDUNGU WAINAINA
GRAFT

he depressing audit report of the Kenya

National Audit Oce on expenditures
by dierent government agencies is
deeply disturbing. The shameful report shows
reality on the ground is dierent from the
governments pronouncements.
The report proves that corruption is deeply
widespread in the public service and political
system, facilitated by weak management of
public resources and law enforcement.
Corruption has scared o investors and stied economic growth. It has decreased investment and trade, costing jobs for young people.
Corruption is facilitating human rights abuses
and organised crime, empowering authoritarianism and creating unaccountable political leadership. It is threatening democratic
peace, security and stability.
Corruption has weakened law enforcement
and police, exposing the country to terrorism
and transnational organised crime. Countless
studies link corruption to increasing levels of
poverty and income inequality. For example,
corruption is diverting public funds away from
schools, hospitals, roads, water, power plants,
and other basic infrastructure.
If Kenya wants to tackle both high level
and petty corruption decisively, the public
trust in key criminal justice institutions such
as the Oce of Director of Public Prosecutions, the National Police Service and the Directorate of Criminal Investigations needs
to be restored.
The government must prohibit public servants from doing business, including tenders,
with it and penalise defaulters. What is at
stake is not the rights of state employees to
do business. It is the economy, security and
democracy of the country. The country has a
good Constitution but no one is playing by it. It
is irresponsible and foolhardy to place public
employees in positions where they can (or are
tempted to) manipulate procurement and other procedures to unfairly benet themselves
at the expense of the state/taxpayers.
Public ocials must also declare the business interests of extended family to prevent
conict of interest. There must be mandatory
audit of these ocials lifestyle.
The government should by action seize the
agreement with the United States government
to increase momentum, tighten the war on
corruption and deny safe havens to corrupt
ocials and their illicit assets. Ethics and
integrity laws governing public ocials (appointed and elected) must be enforced.
Government must rigorously pursue corrupt actors and the proceeds of corruption.
It must robustly promote open government
principles and improve transparency in government transactions and trade deals. No sacred cows. It must be a new path governing
public service with consequences. New rules
must be set and enforced vigorously.
The writer is executive director, International Center for Policy and Conict

Thursday August 6, 2015 | BUSINESS DAILY

13

NEWS INDEPTH
FOOD

T H I R D WO R L D N E T WO R K F E AT U R ES

New appoach planned to

eadicate hunge by 2030

UN Secretary General of Ban Ki-moon. The new UN agenda will be adopted at a September Summit. SUXXXXX

(Independent Evaluation Oce) in the IMF serve

as monitoring agencies. For example, it has been
demonstrated that the decision-making taking
place in a fund like the Global Financing Facility
will be done behind closed doors, by a small group
of elite nancial investors and private sector actors
who contribute to the facility, she added.
Shannon Kowalski, Director of Advocacy and
Policy, International Womens Health Coalition,
told IPS the SDGs signal a major step forward,
especially for women and girls.

Change the game

With this new framework there is potential to really change the game and advance gender equality
which has been recognised as absolutely essential to sustainable development, she added.
Women and girls everywhere have much to
gain from the SDGs. But to make this a reality, we
have to keep pressure on governments to follow
through on their commitments. In the end, the
promise of this historic development agenda is
really up to us, Kowalski declared.
Ian Koski, a spokesperson for the ONE Campaign, said the new global goals are a major landmark in the eort to end extreme poverty.
They lay out a global contract for a world
where nobody lives in hunger or dies of preventable diseases, and while their formal adoption in
September will rightly be cause for celebration,
goals alone will not end poverty, he said.
Its going to take a signicant amount of hard
work to turn these aspirations into reality. Its going to take national blueprints for delivery that
will improve the lives of the poorest people and
the poorest countries, he cautioned.
The monitoring of the goals will need a sharp
focus on accountability, backed by investments
in data collection and use so that citizens have

the information they need to ensure that leaders

keep their promises, Koski declared. SecretaryGeneral Ban Ki-moon said the new development
agenda encompasses a universal, transformative
and integrated agenda that heralds an historic
turning point for our world.
This is the Peoples Agenda, a plan of action for
ending poverty in all its dimensions, irreversibly,
everywhere, and leaving no one behind. It seeks to
ensure peace and prosperity, and forge partnerships with people and planet at the core.
He said the integrated, interlinked and indivisible 17 Sustainable Development Goals are the
peoples goals and demonstrate the scale, universality and ambition of this new Agenda.
Ban said the September Summit, where the
new agenda will be adopted, will chart a new
era of Sustainable Development in which poverty
will be eradicated, prosperity shared and the core
drivers of climate change tackled.
Deon Nel, international acting executive director for conservation at World Wide Fund for Nature (WWF) said: We congratulate negotiators on
their bold action. This is an essential move toward
realizing our dream of shaping a world where people, planet and prosperity come together.
He said SDGs are universal goals that will commit all countries to take action both within their
own borders and in support of wider international
eorts. Individual national commitments must
add up to a worldwide result that helps all people
and ensures a healthy environment.
He said the new development plan represents
signicant improvement from the UNs MDGs as
it recognises the interlinkages between sustainability of ecosystem services, poverty eradication,
economic development and human well-being.
- IPS

Eliminating world hunger by 2030 will require

ments in rural development, agriculture and
an additional $267 billion (Sh26.7 billion) per
urban areas that will chiey benet the poor,
year during the period 2016-2030 in order
said FAO Director-General Jose Graziano da
Silva in a FAO news release.
to fund social protection as well as pro-poor
Our report estimates that this will require
investments in rural and urban areas, a new
a total investment of some $267 billion per
United Nations report has said.
This would average $160 (Sh16,000) annuyear over the next 15 years. Given that this
ally for each person living in extreme poverty
is more or less equivalent to 0.3 per cent of
over the 15-year period, said the report, which
the global GDP, I personally think it is a relawas presented in Rome on Friday.
tively small price to pay to end hunger, Da
The report was prepared by the United
Silva added.
This report helps us to see the magnitude
Nations Food and Agriculture Organisation
of the challenge ahead of us, but we believe
(FAO), the International Fund for Agricultural Development (IFAD) and the World
that we wont see gains in reducing poverty
and hunger unless we seriously invest in rural
Food Programme (WFP).
In an advocacy note accompanying the repeople, said IFAD President Kanayo Nwanze,
port, the heads of the three UN agencies said:
in the same press release.
We can end poverty and hunger by 2030. But
Given the right kind of tools and resourcwe will need a new approach that combines
es, small-scale agricultural producers and rural entrepreneurs can transform struggling
public investment in social protection with
public and private eorts to raise
communities into thriving places,
investment levels in productive
he further said. We need a drasectors especially in rural areas
matic shift in thinking to help the
We can end
and particularly agriculture - to
worlds poorest break the cycle of
much higher levels than in a busihunger and poverty by 2030.
povety and
ness as usual scenario.
We cannot allow them to be
hunge by 2030...
Increasing aggregate investleft behind, said WFP Executive
ments is expected to increase But we will need a Director Ertharin Cousin. We
growth, employment and thus,
new appoach must invest in the most vulnerable and ensure that they have the
incomes, they said, adding that
FAO REPORT
tools they need not only to overproperly designed and implecome hunger, but to enhance their
mented investments to achieve
resources and capabilities.
Zero Hunger will increase the productivity
and incomes of small-scale producers, while
According to the report, despite progress
oering broader opportunities for the poor
in recent decades, including the near achievement of the Millennium Development Goal
and vulnerable.
According to the heads of the FAO, IFAD
target of halving the proportion of hungry
and WFP, of the total average annual nancpeople in the world by the end of 2015, about
ing of $267 billion needed, some $151 billion
795 million people or around one in nine
will be for additional pro-poor investments
still suer from chronic (dietary energy)
in the productive sectors $105 billion for
undernourishment, or hunger.
rural development and agriculture and $46
The eradication of hunger by 2030 is
billion for urban areas.
likely to be a target of the new Sustainable
To sustainably eradicate extreme poverty
Development Goal 2 (SDG2) to be approved
and hunger, we need to boost both private and
in September 2015 at the 70th Session of the
public investment to raise rural and agriculUnited Nations General Assembly.
tural productivity and incomes, as well as to
promote more productive, sustainable and
inclusive food systems.
Farmers are the major source of investment in the sector, but formal systems of credit and insurance often discriminate against
them, especially smallholder family farmers
and others less well endowed, they said.
To break the vicious cycle of poverty and
hunger, people who are extremely poor and
hungry have to be assisted through social
protection.
Adequate, well-designed social protection would enable the people in this category to quickly overcome poverty, hunger and
under-nutrition, the heads of the three UN
agencies also said.
The message of the report is clear: if we
adopt a business as usual approach, by 2030,
we would still have more than 650 million people suering from hunger. This is why we are
One of the 17 new Sustainable Development
championing an approach that combines soGoals targets the eradication of hunger by
cial protection with additional targeted invest2030. FILE

14

BUSINESS DAILY | Thursday August 6, 2015

REGIONAL NEWS
WARNING An international think tank says continued attacks could push state to the brink of war

Fuy ove attempted mude

of Buundi ights activist
The attempted killing of a leading
rights activist, shot in the face by a
gunman, triggered international outrage on Tuesday and stoked fears of
worsening violence in Burundi.
Pierre-Claver Mbonimpa, who
publicly opposed President Pierre
Nkurunzizas bid for a third term
last month, was shot on his way home
from work in the capital on Monday
by a gunman on a motorbike. His
condition is stable, and has even
slightly improved, a family member
said on Tuesday.
UN Secretary-General Ban Kimoon condemned the assassination
attempt and called for the perpetrators to be brought to justice. This incident... is part of a growing pattern of
politically-motivated violence in Burundi that must be broken before it
escalates beyond control, his spokesman said in a statement.
The UN Security Council separately strongly condemned the violent attack targeting the rights activist
and voiced concern that the security
situation in Burundi is deteriorating
rapidly. In a unanimous statement,
the 15-member council appealed for
calm and a return to dialogue while
voicing support for regional mediation eorts.
The UN Secretary-General on
Monday spoke by phone with Ugandan President Yoweri Museveni who
is leading East African eorts to defuse the crisis in Burundi. Several
diplomats, including from the United
States and France, as well as African

Burundi police arrest an anti-government protester. Inset, Mr Pierre-Claver Mbonimpa, President Nkurunzizaa critic who was shot in the face on Tuesday . AFP
Union ocials, were at Mbonimpas
be heard in a neighbourhood of the
hospital bedside during the night uncapital Bujumbura where loyalties are
til the arrival of the police.
split between Nkurunzizas camp and
the Opposition.
The shooting followed Sundays
Ruling party CNDDkilling in a rocket attack of General Adolphe
FDD spokesman GelaseDaniel Ndabirabe accused
Nshimirimana, who was
the Opposition of carrying
widely seen Burundis
This incident...is out a plan of targeted asde-facto internal secupat of a gowing sassination against its
rity chief.
loyalists, the day after a
The attacks come just
patten in
party ocial was
over a week after NkuBuundi.. that local
runziza was declared
shot dead in the east.
must be boken
the outright winner of a
Nkurunzizas candicontroversial presidential BAN KI MOON, UNITED NATIONS dacy was condemned as
election, securing a third
unconstitutional by the
SECRETARY-GENERAL
consecutive term despite
Opposition and provoked
Opposition protests and international
months of protests that left at least 100
condemnation.
people dead in a erce government
On Tuesday evening, shots could
crackdown, as well as an attempted

coup in mid-May. AU Commission

chief Nkosazana Dlamini-Zuma
condemned the attack and wished
Mbonimpa a speedy recovery,
while Human Rights Watch (HRW)
called on the government to ensure
his safety.
We are shocked at this blatant attack on one of Burundis most prominent and respected activists, said
HRWs Africa chief Daniel Bekele.
The Burundian authorities should
take immediate steps to secure Mbonimpas safety.
Amnesty International condemned the brazen attack it said
was part of a disturbing escalation
of violence. Dlamini-Zuma called on
the government to investigate the attempted murder as well as all other
such killings, including the assassination on Sunday of Nshimirimana,
a close aide to Nkurunziza.
All sides in Burundi must show
restraint and seek dialogue. Violence,
from whatever quarter, will not help
get the country out of the current
political impasse, the EUs foreign
aairs arm said in a statement. The International Crisis Group (ICG) think
tank warned the attacks were pushing
Burundi to the brink of war.
There is a qualitative change in
the violence, said the ICGs Thierry
Vircoulon.
After Nshimirimanas killing,
prominent Burundian journalist
Esdras Ndikumana -- who works for
Agence France-Presse (AFP) and Radio France Internationale (RFI) -- was
arrested and badly beaten.
The political crisis in Burundi has
seen independent media outlets shuttered and many journalists ee the
country or go into hiding because of
threats and attacks.
-AFP

SA cout thows out faud case against Malema

A judge threw out corruption charges against South African Opposition
rebrand Julius Malema on Tuesday,
a ruling hailed as a major victory by
the vocal critic of President Jacob
Zuma.
Malema had been accused of
money laundering, racketeering
and fraud relating to government
contracts. But Judge George Mothle
said he had waited too long for his
trial after a string of postponements,
and told him: You are free to go.
The National Prosecuting Authority (NPA) said the move did not constitute an acquittal and the action could
be revived at a later date. But political
analyst Nic Borain said the outcome
was an embarrassment and showed
the states general incompetence to
assemble a case.
If this was a conspiracy to besmirch Malemas name, it looks

Julius Malema walks out of court. AFP

like it was carried out very poorly,
Borain said.
Malema, once a leading gure in
the ruling African National Congress
(ANC), had regularly dismissed the
charges as a government conspiracy
to silence and discredit him.
I stand in front of you, an inno-

cent man, Malema told journalists

and supporters outside the Polokwane High Court in his northern
home province of Limpopo.
There are no allegations whatsoever but I know, because we are
dealing with dogs, they are going to
manufacture something new. They
are free to do that.
Malema was expelled from the
ANC in 2012 for ill-discipline, in one
of the biggest fractures in the party
that dominates South African politics.
He now heads the ultra-left Economic
Freedom Fighters (EFF), the second
largest Opposition group, regularly
accuses the government of corruption
and presents himself as a champion
for impoverished blacks whose lives
have changed little since apartheid
ended in 1994.
This is not an acquittal, the matter was just struck o the roll, the de-

partment of public prosecutions can

be approached to reinstate the matter, National Prosecuting Authority
spokesperson Luvuyo Mfaku told the
ENCA television channel.
The charges against Malema related to a government contract worth
Sh400 million ($4 million) awarded
by a provincial department to a company in which Malema held a stake
through his family trust. The contract
was for the construction of roads in
Malemas home region.
Malema was accused of improperly receiving the cash for the contract in a conspiracy involving state
tenders. Malema, who once headed
the ANCs powerful youth wing and
played a pivotal part in Zumas rise
to power, has urged the president to
pay back millions of dollars of state
funds spent on renovating his home.REUTERS

BRIEFING
BUJUMBURA
Burundi revenue collection
down on sustained violence
Burundis tax revenues fell 36.4 per cent
below target in June, ofcial data showed
on Tuesday, coming against a backdrop
of months of violence stemming from
President Pierre Nkurunzizas decision to
seek a third term.
The countrys semi-autonomous revenue
authority (OBR) said it collected 42.2 billion francs (Sh2.7billion) in June from a
target of 66.4 billion francs. Revenues
were also 35.4 per cent lower than those
collected in June 2014.
Tax revenues from January to June fell
to 285.8 billion francs from 297.4 billion
francs the same period last year.

LUSAKA
Dangote plans to construct
second Zambia cement plant
Dangote, Nigerias largest cement maker,
plans to double investment in Zambia
to around Sh90 billion ($900 million)
by building a second cement plant, the
companys vice-president said on Tuesday. Dangote has already built one cement plant at a cost of Sh45.4 billion in
Masaiti, some 500 kilometres north of
Lusaka that is expected to produce 1.5
million tonnes of cement annually when
it reaches full capacity by the end of this
year.
Thats also in progress and it will soon
come up for commissioning, Dangote
group vice-president Sani Dangote told
reporters, referring to the new plant.

JOHANNESBURG
Coal mining rm ordered to
stop work ahead of job cuts

South Africas Mines minister has ordered Glencore to suspend all operations at a coal mine because of the way it
planned to carry out job cuts.
The countrys mining industry is battling
sinking commodity prices, rising costs
and labour unrest. Glencore announced
in July it would cut 380 jobs at Optimum
and shut part of the mine due to lower
coal prices. It added on Tuesday the
mines nances were strained because
it was supplying state power rm Eskom
with coal at prices lower than the cost of
production.

ABUJA
Nigeria appoints new state oil
rm boss after May graft purge
Nigerian President Muhammadu Buhari
has appointed a new head of the countrys corruption-hit state oil company,
weeks after after sacking the entire
board, his spokesman said on Tuesday.
Buhari took ofce on May 29 and axed
Nigerian National Petroleum Company
(NNPC) chief Joseph Thlama Dawha and
his directors less than a month later after
vowing to tackle what he called the evil
of corruption.
Emmanuel Ibe Kachikwus appointment
as NNPC group managing director was
announced in a statement from Buharis
spokesman Femi Adesina.

Thursday August 6, 2015 | BUSINESS DAILY

BUSINESS DAILY

BUSINESS

THURSDAY, AUGUST 6 2015

TECHNOLOGY
SYSTEMS
INNOVATIONS
INFORMATION
GADGET REVIEWS

REPORT Communication Authority says subscribers prefer SMS when travelling across EAC states
A woman surfs the Internet using a mobile
phone. MARTIN MUKANGU

High chages discouage data

oaming acoss East Afica
BY OKUTTAH MARK

The high cost of accessing data bundles

while roaming across East Africa has
made Kenyan mobile subscribers shy
away from using the service, instead
preferring the Short Message Services
(SMS), a report by the Communications
Authority of Kenya (CA)indicates.
The quarterly report covering the
three months to March indicates that
local mobile subscribers only used one
million megabytes (MB) of data compared to 19.9 million messages sent
during the period.
High data costs while roaming have
seen most mobile users shift the use of
data taris and adopt the of Over the
Top (OTT) services such as WhatsApp,
Viber and Hangout, among others.
South Sudan leads among countries with little data service usage
by Kenyan subscribers at 2,676 MB,
followed by Rwanda (189,282 MB),
Uganda (350,299 MB) and Tanzania
(555,485 MB).
Safaricom and Airtel have blamed
poor telecommunication infrastructure in some countries where satellite
is being used to oer broadband services, making it costly compared to those

using bre optic cables.

In Uganda, for example, an operator using bre optic cable charges Safaricom subscribers Sh14 per
megabyte while those using satellite charge Sh75 per megabyte. Airtel charges a standard rate of Sh46
per megabyte for data roaming in
Uganda and Rwanda.
During the East Africa ICT
ministers meeting held in Kampala on June 5, ICT Secretary Fred
Matiangi announced that his ministry and the industry regulator CA
have initiated talks with otherEast
Africa Community (EAC) states to
harmonise data and SMS taris
across the region.
We are working on a proposal
to have taris of SMS and those of
mobile money transfer be harmonised within the region. Each of the
East Africa member states will have
to put a proposal to their respective Treasury and get their advice
because it will have a revenue implication to the governments, Dr
Matiangi told the Business Daily
in an interview.
He added that the mobile operators will have to negotiate and agree
on an inter-operator rate that will

Costs
In Uganda an operator using bre optic cable charges Safaricom
subscribers Sh14 per MB
while those using satellite charge Sh75 per MB.
Airtel charges a standard rate of Sh46 per MB
for data roaming in Uganda and Rwanda.

then be presented to their respective ICT ministries before being

tabled to the East Africa ICT ministers for discussion during the next
Northern Corridor summit.
The consultation with the private sector is necessary since we
understand that they are also in
business. However, we would also
want to see that our people are not
overcharged,
The EAC states intend to replicate the success of harmonised
voice taris that saw Safaricom and
Airtel reduce their voice roaming
charges by 60 per cent. This has
led to increased communication

15

across the region.

According to the latest sector
quarterly report, voice trac within EAC grew by 113 per cent after
the harmonisation of the roaming
voice taris.
The number of international
incoming voice minutes from East
Africa grew tremendously by 113.4
per cent to record at 49.2 million
minutes, up from 20.7 million
minutes recorded during the last
quarter, the CA report indicated.
At the same time international incoming calls from other countries
grew by 2.3 per cent to stand at 130
million minutes up from 127 million minutes realised during the
last quarter.
In September 2014, Safaricom
slashed its calling rates to Rwanda
by 60 per cent to Sh10 per minute.
In May the telco also cut roaming
charges for its subscribers travelling to South Sudan to Sh10 from
Sh65 per minute.
Airtel subscribers are now
charged Sh9 a minute from Sh23
a minute and one shilling less than
the charges by rival Safaricom.
Retail data roaming prices are
mainly driven by inter-operator
taris; these dier from operator to operator, depending on the
level of data infrastructure development.
Both Safaricom and Airtel said
although they welcome the intergovernmental move, the operators
should have been allowed to selfregulate.
Safaricom yesterday said it supports a market-driven approach
to retail pricing, but added that
it will take time to have harmonised roaming data charges in
the region.
We believe this would be difcult given the disparities in the
levels of data penetration in different countries and the costs of
backhauling the Internet to these
countries, Stephen Chege, Safaricoms corporate and communications director told the Business
Daily. He added that the four
countries are at dierent levels of
infrastructure development, which
poses a challenge in ensuring a fair
pricing model.
Introduction of regulated data
roaming will grossly aect the revenues of both visited and home operators who currently benet from
wholesale roaming with the home
operators beneting from a fraction of the wholesale revenues,
Airtel said.
mokuttah@ke.nationmedia.com

inside>>

CA in campaign to
protect children
from cyber crime

Page 16>
TECHNOLOGY

Mobile heart monitor

boosts early detection
of cardiac problems

Pages 16-17>
MARKETING

What options do
Windows XP and
Vista users have in
Windows 10 world?

Page 18 >>

TECH IN ACTION

16

BUSINESS DAILY | Thursday August 6, 2015

Thursday August 6, 2015 | BUSINESS DAILY

DigitalBusiness

DigitalBusiness
Technology
MBUGUA NJIHIA

Mobile heat monito

boosts ealy detection
of cadiac poblems
HEALTH Alivecore mobile ECG can detect

underlaying problems based on heart rhythm

having the palpitations. But it was impossible to do that. Every time I went to
hospital the palpitations didnt come. And
so no diagnosis could take place.
People like Anyango can now benet
BY SARAH OOKO
from a special mobile phone heart monitor known as Alivecore Mobile Electrocarhile in her early 20s, Mary An- diogram (ECG). Since its launch in 2012,
yango noticed that her heart the device has predominantly been used
would beat too fast at times, in the United States and Europe. But it
even when she was just seated
is now gaining ground in
and not working out.
the country.
She ignored it for a while
The Alivecore ECG
thinking that it was perhaps
allows users to monitor
If I cant detect
due to stress since she was
the electrical activity of
symptoms when
pursuing two degree courstheir heart and deterthe patient is in my mine whether there is an
es at the time whilst holding
a part time job at a local su- clinic, they can use the underlying problem causpermarket.
Alivecoe to ecod ing abnormalities in their
heart rhythm.
One minute I would get
thei heat hythm
palpitations and feel my heart
A natural electrical
pounding in my chest. Then
system causes the heart
DR JELIAM MONAMMED,
after a few minutes, every- CARDIOLOGIST AGA KHAN HOSPITAL muscles to contract well,
thing would be back to norallowing them to eecmal. She ignored the conditively pump blood to the
tion for years until her late thirties when lungs and the rest of the body. But when
the palpitations worsened.
the hearts electrical activity is comproI was getting them many times in a mised, the muscles contract poorly thus
month. And every time I would feel dizzy. leading to irregular heartbeats (too fast
This got me worried.
or too slow) which can damage the heart
For her doctor to make the right diag- if left untreated.
The Alivecore ECG monitor device renosis, he needed to monitor Anyangos
heart rhythm at the time when she was sembles a hollow plastic phone protection

Tech
Talk

A school computer workshop. Progress remains slow on many innovations

that require a new generation of builders. FILE

Make movement is hee:

Caftsmen back in vogue
A recent visit to my former high
school found me among well-worn
classrooms, adjacent to workshops
that I have fond memories of.
You see, I was inadvertently forced
to take a rather unpopular subject,
metalwork, and remember other
students in a dierent set who
frowned on having been allocated electricity in an environment
that embraced doing triple sciences biology, chemistry and physics topped up with commerce.
That was the perfect blend.
I remember the hum of the
machines; measuring, cutting,
bending, drilling and slowly seeing what only an idea fashioned
into a product was once.
The machining tools were aged
and the drawings mainly o the
drafting board with callipers, protractors, rulers and various grades
of the HB pencil at hand, with the
experience the software aided part
by way of AutoCad well after my
nal year exams.
Enough with nostalgia. The reality
is that the workshops have since
seen a change in use with amendments in the curriculum having
seen technical subjects fall of the
menu of knowledge aspiration.
Also polytechnics that served as
the continuing grounds for those
keen to enhance their skills have
taken on new identities.
Now that I am invested in a hardware play, the dearth of technical
skills to build out things is evident.
Currently, without a good purse
to import ready skilled maker

17

talent, progress remains slow on

many innovations that require a
new generation of builders, empowered by aordable access to
tools, materials and production
facilities that can be quickly congured to output parts or handle
an entire assembly.
The opportunity for makers is
growing, evidenced by the coalescing of initiatives to unlock
talent.
Village Capital, which operates
business development programmes for early-stage entrepreneurs in agriculture, education,
energy, nancial inclusion and
health recently announced the
launch of their rst hardware accelerator in Africa, in partnership
with Gearbox; Kenyas rst open
makerspace for design and rapid
prototyping.
They will take in 12 high-potential
invention-based ventures over the
next few months.
Nest VC, which also recently set
up shop in Kenya, is driving the
Inniti Accelerator a 12-week
programme run by a full-time,
dedicated team that will see up
to eight startups from across
the globe selected to go to Hong
Kong to accelerate their Internet
of things businesses.
The makers are back in vogue,
owners of capital have realised it
and educators should too.
Njihia is CEO of Symbiotic |
www.mbuguanjihia.com | @mbuguanjihia

Dr Jeilan
Mohammed (right)
shows a colleague
how the Alivecore
mobile ECG device
is attached to a
smartphone. The
device which costs
Sh8,000 has been
described as a useful
tool for diagnosis
and management of
heart diseases.
SARAH OOKO

case with two electrode strips on the back. Once

it is attached to the phone, users press two or
more ngers (from their left and right hand)
on the electrodes for about 30 seconds.
Their heart beat rhythm is then displayed
on their phone screen. However, users are advised to rst download the Alivecore ECG app
at no cost from their Apple or Android apps
stores before using the monitoring device.
The app needs to be opened or activated
any time the device is used. It enables people
to view graphs showing their heart rhythm patterns. The app then allows users to send this
information directly to their doctors, who can
immediately interpret the results and advise
them accordingly.
The Alivecore ECG monitor is dierent
from normal heart monitors encompassed
in tness apps of most smart phones.
Whereas the latter only measures the heart
rate, the former measures electrical activity
of the heart, allowing doctors to detect heart

Devices price
At a retail price of about Sh8,000, the
Alivecore mobile monitor is priced lower than
conventional heart rhythm monoitors that
patients pay daily renting charges for
Alivecore Company is trail blazing the
innovation of mobile ECG technology, but others
like Samsung and Apple are catching up.
problems just as they would with static ECG
machines used in hospitals.
DrJeilan Mohammed, consultant Cardiologist at Aga Khan University Hospital (AKUH)
has embraced the Alivecore technology and
uses it to assess his patients.
If I cant detect symptoms when the patient
is at my clinic, they can use the Alivecore to
record their heart rhythm at the time when the
palpitations occur. Once the results are sent
to him, Dr Mohammed states that he is able
to correctly determine whether the person has

an underlying heart problem or not.

We, as doctors will therefore be addressing
a real problem instead of guessing yet some
palpitations may be harmless.
Whereas people may not be in a position
to come to hospital at all times, a majority
carry their mobile phones everywhere they
go. They are therefore best placed to capture
their heart rhythms any time they experience
funny heart rhythms.
As such, the Alivecore mobile ECG monitor also acts as a prevention tool, allowing
doctors to detect and correct heart problems
before they worsen and put those aected at
risk of death.
Underlying conditions such as heart ailments due to hypertension, heart valve disease
or heart muscle disease can cause irregular
heartbeats (atrial brillation) leading to palpitations. This interrupts normal blood ow and
may lead to formation of clots. If one of these
clots breaks o and gets stuck in an artery in
the brain, it can cause a stroke and sometimes
instant death.
Once patients like Ms Anyango are put on
medication, doctors can also use the Alivecore mobile ECG to monitor their treatment
progress. The patients can record their heart
rates and send to me. They may be normal or
abnormal. This allows me to tell if the medication they are taking is working, states Dr
Mohammed.
This technology therefore facilitates remote
diagnosis and management of heart patients,
which is especially important for African countries like Kenya that suer from an acute shortage of doctors let alone heart specialists.
Reducing deaths due to non-communicable diseases such as heart disease is now considered as a smart sustainable development
goal (SDG) that will enable aected countries
like Kenya save lives and improve the wellbeing of her citizens. Cardiovascular ailments
(including heart disease) are currently the second leading cause of death in the country, after
infectious diseases.
They are mainly on the rise due to changing
lifestyles such as excess consumption of fat and
carbohydrates, lack of exercise, high alcohol
consumption and cigarette smoking.
sarahooko@gmail.com

Tech in action
BY OKUTTAH MARK

PicewatehouseCoopes
and CIO East Afica link
up to fete innovative ms

IO East Africa has partnered

with consulting rm PricewaterhouseCoopers Kenya
(PwC) for the fth edition of the
annual CIO100 Awards set for
November.
The regional CIO100 Awards
celebrate companies from Kenya,
Uganda and Tanzania for their innovative use of IT. The awards ceremony is an oshoot of the global
CIO100 Awards which have been
held for over two decades, during
which time the awards have identied and recognised 100 companies that demonstrate excellence
and achievement in IT across the
globe.
The awards also provide an opportunity for businesses to share
with their peers about the technological innovations that have enabled or led the way to greater success for their organisation.
As part of the collaboration,
PwC will provide technical support
for the CIO100 survey and also oer
management support. CIO East Africa will coordinate the application
and manage the two-day CIO100
Awards and Symposium.
We have been running CIO100
for the past four years and felt it
was now time to string strategic
partnerships that will add value to
both the applicants and conference

attendees in November. PWC is the

right partner given their continued
involvement in the sector and their
experience in running these kinds
of activities, Andrew Karanja, director, CIO East Africa noted
Across the Globe, CIOs are focusing on winning in the digital era
of IT, what a recent report refers to
as Flipping to Digital Leadership
where digitalisation is transforming business models and determining who will win, in what is now
commonly referred to as the digital
now, digital rst reality.
The CIO 100 Survey enables
rms as well as small and medium
enterprises - SMEs - to nominate
and share with industry the various technology innovations that
have enabled them enhance their
operations. To be selected for a
CIO100 Award, an organisation
has to demonstrate excellence in
Technology Innovation and Business Value Delivery.
The 2014 CIO100 Mega Trends
Report compiled from the CIO100
Survey responses found that more
than two thirds of respondents had
used new technology for the rst
time and saw their organisation
as a front-runner in terms of Information and Communication
Technology.

Tech bytes
CA launches three-month campaign
to protect children from cyber crime
Communications Authority of Kenya (CA) has
launched a campaign on child online protection to
raise awareness of the types of crime that children
are exposed to in the cyberspace.
Dubbed Be the Cop, the campaign highlights the
role that parents, guardians and teachers need to
play to protect children in cyberspace and at the
same time provides avenues of redress should one
encounter cybercrime.
The authority has partnered with other organisations that play a role in safeguarding children
including Department of Children Services, The
Cradle, Kenya Girl Guides Association, Kenya
Scouts Association, Kenya Association of Professional Counsellors, United Nations Children Fund
(UNICEF), Plan International and Childline Kenya.
CA has also partnered with service providers such
as Google, Orange, Airtel and Safaricom.
A study by the authority shows that teenagers are

The authority noted that the Internet is a global

tool that provides endless possibilities, but also
harbours criminals and the issue of protecting children is a global concern.
The child online protection awareness campaign
will run for a period of three months in electronic,
print, outdoor and online media.

CIO East Africa director Andrew Karanja. SALATON NJAU

blog of the week

https://www.techweez.com/

African ICT leaders launch platform to

improve accuracy of data collected

more concerned with cyber bullying while adults

are more concerned that children and teenagers
are accessing pornography. The study further reveals that parents, guardians and teachers seem to
be unable to monitor what children and teens are
doing online, said Francis Wangusi (pictured), the
CA director-general.

A group of prominent African leaders in the eld of

data and innovation from Ghana, Kenya, Zambia,
Rwanda and Senegal announced the launch of the
Accur8Africa platform to improve the accuracy of
data in the continent before the adoption of the
Sustainable Development Goals (SDGs) in New
York in September at the 70th United Nation General Assembly.
Accur8Africa is pushing for an African data revolution, which should ensure that data can be harnessed to impact on planning and decision making

A server room where data is stored. FILE

in the next 15 years, premised on the believe that

accuracy of data remains a non-negotiable necessity for the continents further progress.
Many African data scientists even question basic
population and GDP Data used in Africa in a view of
weak census and GDP rebasing practices.
Accur8Africa recognises that nothing less than a

data revolution is required now in Africa, from improvements in national census policies to a shift in
how African economic outlooks are computed to
ensure better capturing of the informal sector.
To achieve this, the group is working with partners
to support the innovative capacities of statistical
institutions across Africa and encouraging the use
of data-driven decisions alongside better development metrics for key sectors.

Windows 10 has been with us for a week now. Well, at least on an ofcial basis since
there are at least ve million insiders who were actively involved in helping Microsoft
test their latest operating system long before the global release.
I have been using the operating system for my day-to-day tasks since day one.
There are a few things that I like and others that I do not.
Thanks to not owning a convertible, there are some features of Windows 10 (mostly
touch-based) like Continuum that I am yet to experience so I am not able to tell
personally if they work as advertised or they are plagued by endless bugs. Weve heard
that Microsoft is working on releasing as many updates as possible in the shortest
time frame to address most of the bugs.
NOTE: Blog quotes in this section are edited and do not in any way represent the views of
this newspaper or its editors.

16

BUSINESS DAILY | Thursday August 6, 2015

Thursday August 6, 2015 | BUSINESS DAILY

DigitalBusiness

DigitalBusiness
Technology
MBUGUA NJIHIA

Mobile heat monito

boosts ealy detection
of cadiac poblems
HEALTH Alivecore mobile ECG can detect

underlaying problems based on heart rhythm

having the palpitations. But it was impossible to do that. Every time I went to
hospital the palpitations didnt come. And
so no diagnosis could take place.
People like Anyango can now benet
BY SARAH OOKO
from a special mobile phone heart monitor known as Alivecore Mobile Electrocarhile in her early 20s, Mary An- diogram (ECG). Since its launch in 2012,
yango noticed that her heart the device has predominantly been used
would beat too fast at times, in the United States and Europe. But it
even when she was just seated
is now gaining ground in
and not working out.
the country.
She ignored it for a while
The Alivecore ECG
thinking that it was perhaps
allows users to monitor
If I cant detect
due to stress since she was
the electrical activity of
symptoms when
pursuing two degree courstheir heart and deterthe patient is in my mine whether there is an
es at the time whilst holding
a part time job at a local su- clinic, they can use the underlying problem causpermarket.
Alivecoe to ecod ing abnormalities in their
heart rhythm.
One minute I would get
thei heat hythm
palpitations and feel my heart
A natural electrical
pounding in my chest. Then
system causes the heart
DR JELIAM MONAMMED,
after a few minutes, every- CARDIOLOGIST AGA KHAN HOSPITAL muscles to contract well,
thing would be back to norallowing them to eecmal. She ignored the conditively pump blood to the
tion for years until her late thirties when lungs and the rest of the body. But when
the palpitations worsened.
the hearts electrical activity is comproI was getting them many times in a mised, the muscles contract poorly thus
month. And every time I would feel dizzy. leading to irregular heartbeats (too fast
This got me worried.
or too slow) which can damage the heart
For her doctor to make the right diag- if left untreated.
The Alivecore ECG monitor device renosis, he needed to monitor Anyangos
heart rhythm at the time when she was sembles a hollow plastic phone protection

Tech
Talk

A school computer workshop. Progress remains slow on many innovations

that require a new generation of builders. FILE

Make movement is hee:

Caftsmen back in vogue
A recent visit to my former high
school found me among well-worn
classrooms, adjacent to workshops
that I have fond memories of.
You see, I was inadvertently forced
to take a rather unpopular subject,
metalwork, and remember other
students in a dierent set who
frowned on having been allocated electricity in an environment
that embraced doing triple sciences biology, chemistry and physics topped up with commerce.
That was the perfect blend.
I remember the hum of the
machines; measuring, cutting,
bending, drilling and slowly seeing what only an idea fashioned
into a product was once.
The machining tools were aged
and the drawings mainly o the
drafting board with callipers, protractors, rulers and various grades
of the HB pencil at hand, with the
experience the software aided part
by way of AutoCad well after my
nal year exams.
Enough with nostalgia. The reality
is that the workshops have since
seen a change in use with amendments in the curriculum having
seen technical subjects fall of the
menu of knowledge aspiration.
Also polytechnics that served as
the continuing grounds for those
keen to enhance their skills have
taken on new identities.
Now that I am invested in a hardware play, the dearth of technical
skills to build out things is evident.
Currently, without a good purse
to import ready skilled maker

17

talent, progress remains slow on

many innovations that require a
new generation of builders, empowered by aordable access to
tools, materials and production
facilities that can be quickly congured to output parts or handle
an entire assembly.
The opportunity for makers is
growing, evidenced by the coalescing of initiatives to unlock
talent.
Village Capital, which operates
business development programmes for early-stage entrepreneurs in agriculture, education,
energy, nancial inclusion and
health recently announced the
launch of their rst hardware accelerator in Africa, in partnership
with Gearbox; Kenyas rst open
makerspace for design and rapid
prototyping.
They will take in 12 high-potential
invention-based ventures over the
next few months.
Nest VC, which also recently set
up shop in Kenya, is driving the
Inniti Accelerator a 12-week
programme run by a full-time,
dedicated team that will see up
to eight startups from across
the globe selected to go to Hong
Kong to accelerate their Internet
of things businesses.
The makers are back in vogue,
owners of capital have realised it
and educators should too.
Njihia is CEO of Symbiotic |
www.mbuguanjihia.com | @mbuguanjihia

Dr Jeilan
Mohammed (right)
shows a colleague
how the Alivecore
mobile ECG device
is attached to a
smartphone. The
device which costs
Sh8,000 has been
described as a useful
tool for diagnosis
and management of
heart diseases.
SARAH OOKO

case with two electrode strips on the back. Once

it is attached to the phone, users press two or
more ngers (from their left and right hand)
on the electrodes for about 30 seconds.
Their heart beat rhythm is then displayed
on their phone screen. However, users are advised to rst download the Alivecore ECG app
at no cost from their Apple or Android apps
stores before using the monitoring device.
The app needs to be opened or activated
any time the device is used. It enables people
to view graphs showing their heart rhythm patterns. The app then allows users to send this
information directly to their doctors, who can
immediately interpret the results and advise
them accordingly.
The Alivecore ECG monitor is dierent
from normal heart monitors encompassed
in tness apps of most smart phones.
Whereas the latter only measures the heart
rate, the former measures electrical activity
of the heart, allowing doctors to detect heart

Devices price
At a retail price of about Sh8,000, the
Alivecore mobile monitor is priced lower than
conventional heart rhythm monoitors that
patients pay daily renting charges for
Alivecore Company is trail blazing the
innovation of mobile ECG technology, but others
like Samsung and Apple are catching up.
problems just as they would with static ECG
machines used in hospitals.
DrJeilan Mohammed, consultant Cardiologist at Aga Khan University Hospital (AKUH)
has embraced the Alivecore technology and
uses it to assess his patients.
If I cant detect symptoms when the patient
is at my clinic, they can use the Alivecore to
record their heart rhythm at the time when the
palpitations occur. Once the results are sent
to him, Dr Mohammed states that he is able
to correctly determine whether the person has

an underlying heart problem or not.

We, as doctors will therefore be addressing
a real problem instead of guessing yet some
palpitations may be harmless.
Whereas people may not be in a position
to come to hospital at all times, a majority
carry their mobile phones everywhere they
go. They are therefore best placed to capture
their heart rhythms any time they experience
funny heart rhythms.
As such, the Alivecore mobile ECG monitor also acts as a prevention tool, allowing
doctors to detect and correct heart problems
before they worsen and put those aected at
risk of death.
Underlying conditions such as heart ailments due to hypertension, heart valve disease
or heart muscle disease can cause irregular
heartbeats (atrial brillation) leading to palpitations. This interrupts normal blood ow and
may lead to formation of clots. If one of these
clots breaks o and gets stuck in an artery in
the brain, it can cause a stroke and sometimes
instant death.
Once patients like Ms Anyango are put on
medication, doctors can also use the Alivecore mobile ECG to monitor their treatment
progress. The patients can record their heart
rates and send to me. They may be normal or
abnormal. This allows me to tell if the medication they are taking is working, states Dr
Mohammed.
This technology therefore facilitates remote
diagnosis and management of heart patients,
which is especially important for African countries like Kenya that suer from an acute shortage of doctors let alone heart specialists.
Reducing deaths due to non-communicable diseases such as heart disease is now considered as a smart sustainable development
goal (SDG) that will enable aected countries
like Kenya save lives and improve the wellbeing of her citizens. Cardiovascular ailments
(including heart disease) are currently the second leading cause of death in the country, after
infectious diseases.
They are mainly on the rise due to changing
lifestyles such as excess consumption of fat and
carbohydrates, lack of exercise, high alcohol
consumption and cigarette smoking.
sarahooko@gmail.com

Tech in action
BY OKUTTAH MARK

PicewatehouseCoopes
and CIO East Afica link
up to fete innovative ms

IO East Africa has partnered

with consulting rm PricewaterhouseCoopers Kenya
(PwC) for the fth edition of the
annual CIO100 Awards set for
November.
The regional CIO100 Awards
celebrate companies from Kenya,
Uganda and Tanzania for their innovative use of IT. The awards ceremony is an oshoot of the global
CIO100 Awards which have been
held for over two decades, during
which time the awards have identied and recognised 100 companies that demonstrate excellence
and achievement in IT across the
globe.
The awards also provide an opportunity for businesses to share
with their peers about the technological innovations that have enabled or led the way to greater success for their organisation.
As part of the collaboration,
PwC will provide technical support
for the CIO100 survey and also oer
management support. CIO East Africa will coordinate the application
and manage the two-day CIO100
Awards and Symposium.
We have been running CIO100
for the past four years and felt it
was now time to string strategic
partnerships that will add value to
both the applicants and conference

attendees in November. PWC is the

right partner given their continued
involvement in the sector and their
experience in running these kinds
of activities, Andrew Karanja, director, CIO East Africa noted
Across the Globe, CIOs are focusing on winning in the digital era
of IT, what a recent report refers to
as Flipping to Digital Leadership
where digitalisation is transforming business models and determining who will win, in what is now
commonly referred to as the digital
now, digital rst reality.
The CIO 100 Survey enables
rms as well as small and medium
enterprises - SMEs - to nominate
and share with industry the various technology innovations that
have enabled them enhance their
operations. To be selected for a
CIO100 Award, an organisation
has to demonstrate excellence in
Technology Innovation and Business Value Delivery.
The 2014 CIO100 Mega Trends
Report compiled from the CIO100
Survey responses found that more
than two thirds of respondents had
used new technology for the rst
time and saw their organisation
as a front-runner in terms of Information and Communication
Technology.

Tech bytes
CA launches three-month campaign
to protect children from cyber crime
Communications Authority of Kenya (CA) has
launched a campaign on child online protection to
raise awareness of the types of crime that children
are exposed to in the cyberspace.
Dubbed Be the Cop, the campaign highlights the
role that parents, guardians and teachers need to
play to protect children in cyberspace and at the
same time provides avenues of redress should one
encounter cybercrime.
The authority has partnered with other organisations that play a role in safeguarding children
including Department of Children Services, The
Cradle, Kenya Girl Guides Association, Kenya
Scouts Association, Kenya Association of Professional Counsellors, United Nations Children Fund
(UNICEF), Plan International and Childline Kenya.
CA has also partnered with service providers such
as Google, Orange, Airtel and Safaricom.
A study by the authority shows that teenagers are

The authority noted that the Internet is a global

tool that provides endless possibilities, but also
harbours criminals and the issue of protecting children is a global concern.
The child online protection awareness campaign
will run for a period of three months in electronic,
print, outdoor and online media.

CIO East Africa director Andrew Karanja. SALATON NJAU

blog of the week

https://www.techweez.com/

African ICT leaders launch platform to

improve accuracy of data collected

more concerned with cyber bullying while adults

are more concerned that children and teenagers
are accessing pornography. The study further reveals that parents, guardians and teachers seem to
be unable to monitor what children and teens are
doing online, said Francis Wangusi (pictured), the
CA director-general.

A group of prominent African leaders in the eld of

data and innovation from Ghana, Kenya, Zambia,
Rwanda and Senegal announced the launch of the
Accur8Africa platform to improve the accuracy of
data in the continent before the adoption of the
Sustainable Development Goals (SDGs) in New
York in September at the 70th United Nation General Assembly.
Accur8Africa is pushing for an African data revolution, which should ensure that data can be harnessed to impact on planning and decision making

A server room where data is stored. FILE

in the next 15 years, premised on the believe that

accuracy of data remains a non-negotiable necessity for the continents further progress.
Many African data scientists even question basic
population and GDP Data used in Africa in a view of
weak census and GDP rebasing practices.
Accur8Africa recognises that nothing less than a

data revolution is required now in Africa, from improvements in national census policies to a shift in
how African economic outlooks are computed to
ensure better capturing of the informal sector.
To achieve this, the group is working with partners
to support the innovative capacities of statistical
institutions across Africa and encouraging the use
of data-driven decisions alongside better development metrics for key sectors.

Windows 10 has been with us for a week now. Well, at least on an ofcial basis since
there are at least ve million insiders who were actively involved in helping Microsoft
test their latest operating system long before the global release.
I have been using the operating system for my day-to-day tasks since day one.
There are a few things that I like and others that I do not.
Thanks to not owning a convertible, there are some features of Windows 10 (mostly
touch-based) like Continuum that I am yet to experience so I am not able to tell
personally if they work as advertised or they are plagued by endless bugs. Weve heard
that Microsoft is working on releasing as many updates as possible in the shortest
time frame to address most of the bugs.
NOTE: Blog quotes in this section are edited and do not in any way represent the views of
this newspaper or its editors.

18

BUSINESS DAILY | Thursday August 6, 2015

DigitalBusiness
Gadget reviews

INNOVATION Microsofts latest software comes with upgrades to boost efciency in computing

What options do Windows XP and

Vista uses have in Windows 10 wold?

Moto G 3rd gen smartphone for daily life

We are living in a world that is obsessed with smartphones
octa-core processors, 13-megapixel cameras, and gigabytes
of RAM, but we dont spend enough time talking about how it
feels to use a phone on an everyday basis.
Moto G 3rd gen smartphone boasts of relatively
modest specications
when compared to the likes
of the Lenovo K3 Note and
Xiaomi Mi 4i, but packs in
other goodies like water
resistance that can potentially be a lifesaver.

Lenovo K3 Note res salvo in price war

indows 10 is now available. Microsoft is currently oering the

operating system for free for a
limited time to Windows 7, Windows 8,
and Windows 8.1 users. While this is great
news for a majority of PC owners, those of
you still holding on to a Windows XP or
Windows Vista machine may be feeling left
behind. All isnt lost, however, and there
are still upgrade options available. Heres
what you can do:

Systems specs
Processor: 1GHz CPU or faster
RAM: 1GB (32-bit) or 2GB (64-bit)
Disk space: 16GB (32-bit) or 20GB
(64-bit)
Graphics: DirectX 9-capable video
card with WDDM drive

Do nothing
No one is forcing you to update to Windows 10. There are plenty of happy people
with computers that just work running
Windows XP or Windows Vista. Microsoft,
however, no longer issues security updates
and patches for Windows XP. This means
that your PC is more vulnerable to malware.
Windows Vista will no longer be receiving
these patches in April of 2017.
Windows 10 isnt like the horrors you
may have heard about with Windows 8.
In fact, it isnt all that dierent from Vista or XP from a visual standpoint. Sure,
there are some dierences, but you will
nd a familiar Start button and the desk-

top interface you have come to know and

love with Windows. In addition, however,
Windows 10 also adds the helpful Cortana voice assistant to the desktop, a new
Edge Web browser replaces Internet Explorer, and theres even Xbox One game
streaming.

See if you can update to Windows 10

The requirements to run Windows 10 are
the same as Windows 7. If your system meets
the minimum hardware requirements, you
can do a clean install of Windows but it
will cost you. A copy of Windows 10 Home
retails for $119, while Windows 10 Pro

costs $199. Theres also the Windows 10

Pro Pack for $99. This will let you upgrade
from Windows 10 Home to the Pro edition
at a later time.
The good news is that you wont need a
system with incredibly high-end hardware
to run Windows 10, but some older machine may still not be capable of running
it. Windows 10 requirements are:
Processor: 1GHz CPU or faster
RAM: 1GB (32-bit) or 2GB (64-bit)
Disk space: 16GB (32-bit) or 20GB
(64-bit)
Graphics: DirectX 9-capable video
card with WDDM driver
Scrap your old PC, and get a shiny new
one that can run Windows 10
Even if your machine meets the minimum system requirements to run Windows 10, it may not do so very smoothly. It
may be a better investment to buy a new
PC, especially given that it costs $120 to
purchase Windows 10.
There are many laptops that range
from as little as $200 to $500 that are
capable of running Windows 10 without
any known problems.
SOURCE: CNET

When manufacturers get into price wars, it is customers who

win. Lenovo has red the latest salvo with the Lenovo K3 Note,
a 5.5-inch cheap smartphone, with specications that would
have been pretty much top tier
not more than two years ago.
The company is breaking new
ground in terms of value for
money, but not so much in
terms of strategy. The K3 note
is available only in limited numbers and only through ash
sales through an exclusive tieup with a major online retailer.

Nokia unveils Ozo 360 degree VR camera

Nokia has announced its rst commercially available its Ozo

360-degree VR camera at an event in Los Angeles. The Ozo
is said to be the rst in the portfolio of digital media solutions from Nokia Technologies, the rms advanced technology and licensing business. In a press statement, Nokia announced that the nal testing and renements to Ozo would
be done in partnership with industry professionals, before
commercial release. The Ozo virtual reality (VR) camera is
expected to start shipping in Q4 2015 and Nokia will be announcing the pricing and full technical specications at a
future date. The company conrmed that the Ozo would
be manufactured in Finland. The device can capture stereoscopic 3D video through eight synchronised shutter sensors
and audio through eight integrated microphones.

Tech Demystied

Open-source software gives rms best tools for innovation

A generation ago, open source was a new
idea that seemed to have little applicability to big business. It was a playground for
researchers (most of them academics), and
their goal was to build a better system, not
to make money.
Real business was done on closed systems
built by companies like Microsoft, Oracle
and IBM, all developed internally at what
now seems like a snails pace, with long
multi-year R&D cycles.
Companies no longer have the luxury of

time in our hyper-connected, cloud-based,

fast-changing world. Competitors can
quickly appear, and have been doing so in
droves.
In this market, open-source software gives
companies access to the best developer
tools and code instantly, allowing for rapid
innovation by letting them immediately
benet from the work of hundreds or thousands of developers, contributing just those
pieces that are unique to their business or
use case.

The streaming media behemoth Netix

also has been a leader in showing the effectiveness of open source for innovation in
todays environment. When Netix started
streaming movies to millions of members,
relying on Amazon Web Services as its
cloud platform, no one was doing anything
like it.
Netix couldnt nd any commercial tools
to manage its system, so it had to create
them. It couldve painstakingly built proprietary tools, but instead it turned to the

open-source community for help and in

turn made the tools they created available
to the public.
The result for Netix has been a series of innovative tools that it calls its Simian Army.
Chaos Monkey, for instance, randomly
shuts off various virtual machines in a
Netix services on AWS to make sure that
any given service will continue to work if
another virtual machine gets knocked out.
Another, Janitor Monkey, roams the system
looking for unused resources and switches

them off, thereby cleaning up the system.

Going open source aided Netix get help
from thousands of developers who dont
work for Netix but feel they would benet
from those same tools once developed.
Without that help, Netix would have had
a very difcult time building the breakthrough streaming media features that
have differentiated them as quickly as they
needed while also attracting some of the
best talent in the valley.
- TECHCRUCH

Thursday August 6, 2015 | BUSINESS DAILY

19

MONEY & MARKETS

PRICES I RESULTS I DATA

Teasuys dolla exposue ises Sh219bn

BORROWING CBK report for April shows 56pc

rise in foreign credit from 45pc last December

end of last year, raising Sh73.8 billion
to add to the Sh176 billion ($2 billion)
Kenyas dollar-denominated debt rose raised in the initial Eurobond sale in
Sh219 billion in the rst four months of June 2014.
the year, exposing the country to higher
The principal and interest repayinterest costs following weakening of ments for external debt are made in
the shilling against the green back.
the currency of denomination. The
The rise was largely informed by shilling has depreciated to the dollar
a stronger dollar and the sovereign to the tune of about 11.5 per cent this
year, and the yen by 8.4 per cent, while
bond issue.
Central Bank of Kenya (CBK) month- against the Euro the shilling remains
ly economic report for April shows the at exchanging at 109.8 units.
dollar-denominated portion of the total
The stronger dollar and yen, thereexternal debt of Sh1.33 trilfore, pushed up the debt
lion ($13.6 billion) in April
load in local currency
was equivalent to 56.3 per
terms on account of reThe gowth in
cent. It previously stood at
valuation.
45.1 per cent in December extenal debt duing
According to the CBK
2014 when the external
data, debt owed Internathis peiod was
tional Development Asdebt stood at Sh1.17 trillagely
attibuted sociation, Kenyas larglion.
est multilateral lender,
The increase came as
to exchange ate
amounted to Sh382 bilthe debt denominated in
evaluation
Japanese Yen and Euro delion ($3.9 billion) or 29.4
CENTRAL BANK OF KENYA REPORT
clined from 12.1 per cent
per cent of total external
debt while that owed Jaand 29.9 per cent, respecpan, the largest bilateral
tively, to 9.6 per cent and
23.6 per cent during the period. The lender, amounted to $800 million, or
net change in total foreign debt was 5.8 per cent of the total external debt
as at the end of April.
Sh156 billion.
The stake of the total external debt
The rise in the US dollar-denominated component is attributed to the attributable to the central government
proceeds from the tap sale of the sov- stood at Sh1.28 trillion (97 per cent),
ereign bond issued in June 2015...the with government guarantees to pargrowth in external debt during this astatal accounting for the remainder.
The increase in total debt load, takperiod was largely attributed to exchange rate revaluation, said CBK in ing into account that domestic debt has
also grown in the rst seven months
the report.
Kenya issued the tap sale at the of this year by Sh95 billion to Sh1.402

Mombasa tea
auction pices
fall maginally
BY GERALD ANDAE

BY CHARLES MWANIKI

The National Treasury Building in Nairobi. FILE

trillion, has raised concern over the
strain the repayments will have on the
economy in coming years.
Ratings agency Moodys said on
Monday that Kenyas debt, at about
50 per cent of gross domestic product,
remains manageable for now, but that
continued wide budget decits would
begin to seriously erode the governments debt servicing capacity.
In our view, the authorities decision to seek IMF assistance with its
two stand-by arrangements and their
scal consolidation over the next four
years are signals that the government
recognises its scal vulnerabilities as

well as the need to build capacity to

avoid a more dicult outcome, said
Moodys.
Another international ratings agency, Fitch, announced two weeks ago it
had put Kenyas credit rating longterm foreign and local currency issuer
default ratings on a negative outlook
from stable.
It signals that nancial commitments are currently met but capacity
for continued payment is vulnerable
to deterioration in the business and
economic environment.
cmwaniki@ke.nationmedia.com

Tea prices at the Mombasa auction

on Tuesday dropped slightly after
hitting new highs last month.
A kilogramme of made tea
dropped to sell at Sh309 from
Sh312 in the previous trade.
East African Tea Trade Association, however, downplayed
the drop.
The price fell by Sh0.3 cents
during this weeks auction, this is
not a signicant drop at all but we
are monitoring the trends in the
next two weeks, said managing
director Edward Mudibo.
He said the demand for the commodity was still high at the auction
and that they expect the prices to
pick up in the coming auctions due
to the declining volumes.
The volume of tea traded
dropped from 5.5 kilogrammes
last week to 4.9 kilogrammes in
the Tuesday auction.
The price of tea registered a
new high mid-last month, riding
on high demand as volumes oered
reduced. A kilogramme of the beverage fetched Sh314, the highest
recorded this year.
Good coee prices have been
attributed to the good quality crop
from farmers new harvest.
Kenyas premium coee, grade
AA, registered a decline in price
during this weeks auction, selling
at Sh22,400 a 50-kg bag compared
to last week Sh22,800.

Chase Bank eyes Sh2.5bn injection to shoe up capital base

BY GEORGE NGIGI

Chase Bank is set to expand its ownership through a private placement,

after concluding its third cash call in
as many years, to shore up a capital
base that is running thin.
The bank raised Sh1.6 billion in the
cash call that closed in June and an
additional Sh600 million by selling
shares to its sta members through
the employee share ownership programme.
The lender also aims to raise Sh2.5
billion by introducing new shareholders in its books through a private placement which concludes in October.
The total proceeds from the capital raising exercises will be used to

further strengthen the banks capital

base, support growth and onward
lending activities, and fund branch
expansion, investments in IT and
other product development initiatives, reads a credit rating report by
Global Credit Rating.
The South African agency gave an
initial rating of A- with a stable outlook
to the mid-sized bank.
Chase Bank core capital to total
deposit ratio was at 10.5 per cent as
at March, equal to the minimum requirement, which denies it room to
take in new savings from the public.
In the year to March, the bank had
grown its deposit base by 56.4 per cent
to Sh90.6 billion.
Bank owners are required to back

Chase Bank chairman Zafrullah Khan .

DIANA NGILA

customer savings by investing at least

Sh1 for every Sh9.5 they collect from

the public.
In June the lender also raised Sh4.8
billion seven-year debt through its debut corporate bond which is classied
as tier II capital.
Chase Bank total capital to its loan
book was also at par with the minimum
requirement at 14.5 per cent giving it
little space to increase its lending.
GCR views the capital raising exercise as credit-positive, reads part of
the credit rating report.
Chase Bank has been involved in
a series of fund raising including inviting three strategic investors in the
last two years.
Last year, the lender raised Sh1.3
billion through a rights issues following a similar amount raised in 2013

and Sh400 million in 2012. In 2011 it

expanded its ownership through a private placement of Sh810 million.
The banks institutional shareholders include Amethis Finance, German
fund DEG, European Investment Bank
(EIB) and Zurich-based asset management rm Responsibility Participations AG.
The bank has in the past relied
heavily on long-term debt from multi-national lenders.
The lenders growth has seen it
increase its market share to 2.98 per
cent up from 1.87 per cent in 2012.
This has seen it move up two places
in the banking sector ranking to be
12th largest bank in an industry with
43 players.

20

BUSINESS DAILY | Thursday August 6, 2015

MONEY
MARKETS
COUNTY&BUSINESS

Maket watchdog puts out new exchange funds commissions

BY GEORGE NGIGI

Exchange-traded funds (ETFs) investors will be charged fees equivalent to

those charged equities market, Capital Markets Authority (CMA) has proposed.
The new collective investment products, modelled on unit trusts but with
lower management fees, are some of the
products the capital markets regulator
plans to introduce in an eort to expand
options available to investors.
For a start, ETFs fees shall be equivalent to charges in the equities markets
subject to revision by CMA notication,
reads part of the draft regulations published by CMA for public debate.
The commission for investing in
shares is 2.1 per cent of the invest-

ment, an amount which is divided

between the brokerage used by the investor, Nairobi Securities Exchange,
the market regulator CMA, custodial
body Central Depository and Settlement Corporation and the Investor
Compensation Fund.
The regulator has also opened the
door for oshore ETFs to be traded in
the country but they will have to be
priced in local currencies.
ETFs oer a mechanism for reducing exposure to signicant price uctuations that sometimes characterise
arbitrary buying and selling of securities, said CMA acting chief executive
Paul Muthaura.
An ETF is a fund to which investors
contribute money which goes into buying securities that compose an index or

Capital Markets Authority acting chief executive Paul Muthaura. FILE

a dened group of securities such
as banking or insurance stocks put
together.
Just as is the case with equities, the

value of an investment in an ETF may

go up as well as down as the market
conditions change.
The ETFs will have price limits as

CAPITAL FLIGHT Nigeria Stock Exchange gains from sell-offs as Kenyan market tumbles

Foeign outows
hit Sh7.5 billion
in seven months
When we were doing well in our
market the Nigerian market was
Foreign investors recorded a fth
quite negative, ahead of their March
straight month of net outows from
elections. Since then we have seen
the Nairobi Securities Exchange in
their market recover as ours started
its slide although this is just one
July, largely contributing to the
of several factors contributing to the
bourse shedding 10 per cent value
outows, said Old Mutual Securities
in the month.
analyst Halima Saadia.
Market data compiled by Standard Investment Bank shows the
Equity Holdings led the market
bourse registered net foreign outin net foreign outows last month
ows of Sh1.4 billion ($13.88 milat Sh2.2 billion ($21.6 million), follion) in July, the fth straight month
lowed by BAT Ltd at Sh178.1 million
of net outows, largely on
($1.75 million).
account of foreign selling
Equity shed 17.4 per
on the Equity Holdings
cent during the month
counter. The cumulative When we wee to end at Sh39.75 a share
on selling pressure, while
net outows for the rst
doing well in BAT was unchanged at
seven months of the year
stood at Sh7.5 billion.
ou maket the Sh741.
CfC Stanbic saw outThe outows have co- Nigeian maket
ows of Sh96 million while
incided with a rebound
was quite
East African Breweries Ltd
of the Nigeria Stock Exchange, which recorded negative, ahead saw foreigners sell o a net
net inows of Sh8.5 bil- of thei Mach of Sh80.3 million.
CfC Stanbic, down 23.4
lion ($83.1 million) in the
elections
second quarter of the year
per cent year-to-date (16.7
after witnessing outows HALIMA SAADIA, ANALYST, per cent down in July),
of Sh95 billion ($960.55 OLD MUTUAL SECURITIES performance was cited
million) between Januas one of the reasons for
ary 2014 and March this year.
pan-African fund Allan Greys 10
Analysts have pointed to the Niper cent decline in returns on Afrigerian market as one of the destinacan equities.
tions of capital eeing the Kenyan
On the inow side, KCB Group
market and other peer bourses
in July led the market with a net of
Sh412.6 million ($4.04 million). Coon the continent following the
operative Bank was second on Sh242
successful elections in Africas largmillion ($2.4 million) followed by Saest economy and renewed business
faricom which recorded net inows
optimism.
BY CHARLES MWANIKI

NSE foreign capital net inows/outows

July 2015 (Sh Mn)
Equity Bank dominated the market in net foreign
outows, recording more than 10 times the total
of the second highest counter.
Top 5 inows

Top 5 outows

KCB

412.6

Equity Bank

Coop Bank

242

BAT

178.1

Safaricom

224

CfC Stanbic

96

Kenya Re

100.7

EABL

80.3

NSE

73.3

Britam

45

is the case with listed shares which are

not allowed to gain or lose ten per cent
of their price in one day trading.
However o-shore ETFs intra-day
price limits will be guided by their domicile market and forex uctuations.
ETFs are not capital protected. There
is, therefore, no guarantee that on selling after purchase, investors would get
back the whole amount invested.
The investor gets exposed to the index, such as the NSE 20-share index,
meaning his money sometimes buys
a portion of all shares that make up
the index.
Because the targeted group of securities are pre-determined, the investor
is saved the costs and eorts of having
to construct a portfolio of companies
to buy into.

Shilling gains
on tight liquidity,
focus on MPC
The Kenya shilling rmed yesterday,
helped by a liquidity squeeze that has
led to rising overnight lending rates,
but trade was cautious hours ahead
of central banks interest rates decision.
At 10.56am, commercial banks
quoted the shilling at 100.95/101.15
to the dollar compared with Tuesdays close of 101.10/20.
Traders said due to tight liquidity
in the money market, interbank lending rates had risen further and made it
costly to hold dollars, which was supporting the shilling.
The weighted average interbank
lending rate jumped to 20.4375 per
cent on Tuesday from 19.8170 per
cent a day earlier, and hit an intraday
high of 22 per cent.

2,203

SOURCE: STANDARD INVESTMENT BANK

Dollar positions

A Nairobi Securities Exchange staff take notes at the bourse on July 28. SALATON NJAU
of Sh224 million ($2.2 million).
Other than outows to Nigeria,
analysts also say the US market could
be pulling back some capital from
emerging and frontier markets as
its economy improves.
Foreigners, who control a lot of
the NSE activity are moving, for example, to the US where the Federal
Reserve is expected to raise its bank
rates, making the xed income market there very attractive, said ABC
capital analyst Joshua Otiende.
Other factors at play include the
weakening shilling that has seen sellos as foreigners rush to protect the
dollar value of their investments, and
the capital gains tax (CGT) which was
reintroduced in January.

The CGT issue contributed to the

negative sentiment in the market in
the rst half of the year. There was a
stando between stockbrokers and
the government over modality of its
implementation.
The Treasury announced in June
it would replace CGT on stocks with
a withholding tax at 0.3 per cent of
the gross transaction value of listed
securities, with expectations being
that this would boost the market.
However, market players were
celebrating too early as the proposal is set to be implemented next
year, meaning investors at the bourse
would continue paying capital tax
until the end of the year.
cmwaniki@ke.nationmedia.com

In the morning it had appreciated. Its

being driven by the cost of holding any
long dollar positions, a trader at one
commercial bank said.
The way (overnight lending)
rates have seriously gone up, most
banks are funding their shilling positions by maintaining short dollar
positions.
A trader at another bank said trade
was expected to be subdued while the
market awaits the outcome of the central banks Monetary Policy Committee
meeting later in the day.
A Reuters poll of analysts showed
they expect the bank to raise the rate to
12 per cent from 11.50 per cent.
The central bank said it planned to
mop up Sh3 billion in excess liquidity
($30 million) from the money markets.
- REUTERS

Thursday August 6, 2015 | BUSINESS DAILY

21

MONEY & MARKETS GLOBAL

Hope fo quick ecovey of oil

pice dimmed by 2020 odes
CRUDE The cost for
The dollar index, which measures it against a basket of currencies,
rose to 98.218, its highest since April 23. FILE

Dolla ises on Fed

Reseve ate bets,
eanings lift shaes
The dollar rose to its highest in fund futures implying around
more than three months and a 1-in-2 chance, compared with
US Treasury yields rebounded around 1-in-3 after weak wage
from two-month lows yesterday, growth data last week.
after a Federal Reserve ocial
Yields on 10-year Treasury
said the central bank was close notes rose three basis points on
the day to 2.24 per cent, having
to raising interest rates.
The comments on Tuesday hit two-month lows around 2.14
from Atlanta Federal Reserve percent earlier this week.
In stocks, Europes index of
President Dennis Lockhart,
regarded as one of the Feder- the leading 300 shares was up
al Open Market Committees 0.8 per cent at 1,593 points, Britcentrist policymakers, put ains FTSE 100 was up a third of
next month back on the table one percent and Germanys DAX
for the rst US rate hike in al- up one per cent.
most a decade.
Frances CAC 40 was also
Solid European corporate up 1 percent, led by a 8.5 percent surge in SocGen
earnings, notably
shares after the bank
from French bank
reported
secondSociete Generale,
quarter results that
boosted stocks afThe maket has
ter Lockharts combeat analysts forebeen wong- casts.
ments and a slide in
Apple shares soured
A report on Spains
footed once
sentiment the previservice sector, which
moe by the
ous day.
showed the fastest
The
dollars Fedeal Reseve pace of growth in
strength kept gold
three months and
KATHLEEN BROOKS,
prices anchored
strongest hiring in
RESEARCH DIRECTOR AT
eight years, also boostnear recent veFOREX.COM
ed investor sentiment
year lows, though
oil clawed back a small part of in Europe.
Earlier in Asia, Japans
the 20 percent it has lost in the
Nikkei rose 0.5 percent but
past month.
The market has been MSCIs broadest index of Asiawrong-footed once more by Pacic shares outside Japan
the Federal Reserve, said Kath- slipped 0.2 percent.
leen Brooks, research director
In China, the CSI300 index
at FOREX.com.
of the largest listed companies
A rate hike cometh - time for in Shanghai and Shenzhen was
the market to play catch up.
at after curbs on short-selling
The dollar index, which prompted a sizable bounce on
measures it against a basket Tuesday.
of currencies, rose to 98.218, its
There were also signs Chihighest since April 23.
nese consumers could be takThe greenback was close to ing over from manufacturers
multi-year highs against emerg- as the driving force for growth
ing market currencies including as the Caixin/Markit survey of
the South African rand, Brazil- services climbed to its highest
ian real and Indonesian rupiah. in 11 months. Losses on Wall
The euro fell 0.25 percent to a Street on Tuesday had been
two-week low of $1.0847. Inves- modest with the Dow ending
tors narrowed the odds on a Sep- 0.27 percent lower.
tember US rate hike, with Fed - REUTERS

delivery in December
2020 nearly $8 lower
than the start of this year

s oil prices entered a second steep

slide a few weeks ago, bullish traders and analysts had hoped for a
repeat of the sharp but short dip that occurred early in the year a speculative
slide below $50 (Sh5,000) a barrel followed
by a quick recovery.
Some are now reconsidering that view,
as long-term oil prices take the lead in the
markets latest dive, swaying sentiment toward a lengthier slump that would mean
prolonged pain for big producers, from
Exxon Mobil Corp to Saudi Arabia.
While immediate delivery benchmark
global Brent crude oil futures at $50 a barrel are still about $4 (Sh400) higher than
they were at their lowest point in January,
prices for delivery in December 2020 are
nearly $8 (Sh800) lower than the start of
this year, trading at a contract low of less
than $67 (Sh6,700) on Tuesday. A year
ago the contract hovered at around $100
(Sh10,000) a barrel.
The reason for the deterioration of the
forward curve and decline in long-dated
futures is a subject of debate.
But even some who disagree with the
fundamental logic of lower long-dated
prices are coming round to the scenario
that prices will be lower for longer.
The back of the market has led prices
lower as speculators are no longer convinced higher oil prices are required to
balance future oil supply and demand,
consultants PIRA Energy Group, which
called last years price slide but has also
predicted a sharp rebound, wrote in a
note this week.
The rm does not make its specic
forecasts public.
PIRA disagrees with this view, but
a show me mindset regarding tightening balances will keep prices lower than
forecast earlier. Some believe the recent
sello was fuelled by speculators eeing
the market amid collapsing condence
after Chinas stock market crash, and

The retreat in long-term oil prices started last year when Saudi Arabia made clear it would
no longer cut production in order to tighten up sloppy markets. FILE

exacerbated by a lack of liquidity and

resumption of hedging by producers
including Mexico, which sell futures to
guard against lower prices. The decline
in calendar year 2016 prices has been overstated, in our view, analysts at Barclays
wrote this week. Fundamental tightening,
demand and stock revisions, and current
positioning are likely to raise prices in the
months ahead.
Others say it stems from more deeply
rooted fundamental factors, such as falling production costs in the US shale patch
and expectations of rising exports from
Iran next year following a landmark nuclear agreement - and if so, far forward
prices may be ashing warning lights for
the future.

Sloppy markets
The retreat in long-term oil prices commenced in the latter part of last year, when
Saudi Arabia made clear it would no longer cut production in order to tighten up
sloppy markets.
Absent the kingdoms implicit promise
to defend prices, the value of Brent crude
oil for ve years in the future LCOc60 slid
from nearly $90 a barrel in late November
to around $72 almost two months later.
Over the past month, however, it has
dived anew, reaching nearly $66 a barrel
on Tuesday, its lowest since 2009.

Last week, analysts at ABN AMRO cut

its 2016 oil price forecasts by $10 a barrel
on a mix of factors including falling production costs, disappointing demand,
a stronger US dollar and deteriorating
market sentiment.
What we see is that the U-shape recovery which we still expect for oil prices will
take longer to materialize, Senior Energy
Economist Hans van Cleef told the Reuters
Global Oil Forum last week.
The question for oil executives, traders
and analysts is whether this represents a
new equilibrium for the market a price
high enough to encourage just enough new
production in the future to meet demand,
which continues to grow.
Standard Chartereds Paul Horsnell,
one of the most bullish forecasters in Reuters monthly poll with a projection for
$93 Brent in 2017 OILPOLL, says no - longdated prices are too low, although the latest
slide may signal a deferred recovery.
Is this a market transitioning from
a view of an inevitable bounce in 2016 to
adding another year onto the rebound? We
just dont know yet, said Horsnell.
And while some big companies such
as BP Plc and Royal Dutch Shell Plc are
preparing investors for a more extended
downturn, some are still signalling cautious optimism.
- REUTERS

Bent ises towad $51 ahead of US stocks data

Benchmark Brent crude oil prices rose
above a key support level of $50 yesterday,
up for a second session from multi-month
lows, as investors await US oil inventories
data to gauge supply.
Oil markets paused for a breather after
prices tumbled about 20 percent in July
because of a supply glut.
OPEC continued to pump at record
rates in July and US shale oil production
showed no sign of abating as drillers added

more rigs in past two weeks.

A landmark nuclear deal struck between Tehran and world powers has
sparked concerns of more Iranian oil
returning to global markets and worries about fuel demand growth has also
dragged down oil prices. The market is
still digesting news of Iran coming back
with more supply, Ben Le Brun, a markets analyst at OptionsXpress in Sydney
said. There is uncertainty in terms of

demand growth being able to pick up the

slack caused by a supply glut.
September Brent crude LCOc1 rose 62
cents to $50.61 a barrel by 0629 GMT after
gaining 1 percent in the previous session,
up from a six-month low on Monday.
US crude for September delivery CLc1
gained 54 cents to $46.28 a barrel, recovering from a four-month low touched on
Monday.
- REUTERS

22

BUSINESS DAILY | Thursday August 6, 2015

MARKET DATA
Agro Commodities Market
Early Morning wholesale commodity prices Date 05-08-2015
COMMODITY
Unit
Kg
Nairobi
Mombasa
CEREAL
Dry Maize
Bag
90
2900
3100
Green Maize
Ext Bag
115
2400
6500
Finger Millet
Bag
90
7200
7200
Sorghum
Bag
90
3600
3600
Wheat
Bag
90
4000
LEGUMES
Beans Canadian
Bag
90
6000
Beans Rosecoco
Bag
90
6000
5600
Beans Mwitemania Bag
90
5800
5300
Mwezi Moja
Bag
90
5700
Dolichos (Njahi)
Bag
90
11200
11700
Green Gram
Bag
90
11500
9900
Cowpeas
Bag
90
7000
5400
Fresh Peas
Bag
51
1800
2000
Groundnuts
Bag
110
13000
14850
ROOTS & TUBERS
Red Irish Potatoes Bag
50
1600
1700
White Irish Potatoes Bag
50
1500
2200
Cassava Fresh
Bag
99
1800
1600
Sweet Potatoes
Bag
98
3000
3100
VEGETABLES
Cabbages
Ext Bag
126
1400
1700
Cooking Bananas Med Bunch
22
540
700
Ripe Bananas
Med Bunch
14
600
400
Carrots
Ext Bag
138
2800
3000
Tomatoes
Lg Box
64
4800
5000
Onions Dry
net
13
900
750
Spring Onions
Bag
142
1600
4000
Chillies
Bag
38
1700
1500
Cucumber
Bag
50
1800
2000
Capsicums
Bag
50
2000
2000
Brinjals
Bag
44
1700
900
Cauliower
crate
39
1700
3900
Lettuce
Bag
51
1800
2000
FRUITS
Passion Fruits
Bag
57
4500
6000
Oranges
Bag
93
2800
3800
Lemons
Bag
95
2600
2700
Mangoes Local
Bag
126
2200
1500
Mangoes Ngowe
Sm Basket
25
1000
1500
Limes
net
13
1000
750
Pineapples
Dozen
13
720
900
Pawpaw
Lg Box
54
1600
1300
Avocado
Bag
90
1800
3000
Kales
Bag
50
1000
1000
OTHERS
Eggs
Tray
300
360

Commodities
Kisumu

Nakuru

Eldoret

Embu

3200
2200
7200
3400

2600
1600
5800
2700

2700
900
6750
4950
3400

2800
2300
6000
3600
4800

7200
6800

12000
8000
2800
12000
2200
2200
2000
2500
900
350
350
4000
4000
1040
1500
1500

5000
5000
4500

5400
5400

10800
8100
7200
2200
13700

9000
9000
4050
1530
11250

1600
1600

1000
800

2500

1600

350
750
2500
4000
750
1000
2000

2300
1400

1200
900
700
1000
3600
1040
700

1700
800

2500
390
500
4000
2500
750
3500
3400
5000
4000
2600
3500
3000

2200
3600

7000
3500

2400
700

2000

620
1500
1700
1200

480
3000
2000
800

1040
1600
1600
800

1000
1600
1900
1000

360

320

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

NET.CHNG
7.672
17.582
-1.638
-194.492
-37.783
-24.411
-30.814
-33.036
-2.245
-71.946
-20.854
-8.134
-23.63
9.798
18.023
-2367.969
-19.19
-2.717
32.965
22.47
11.394
-19.486
-4.201
-1716.117
59.847
10.236
-3.802
-43.713
-43.844
-78.911
5.502
16.599
-175.496
-0.918
4.753
-62.213
-38.712
-8.368
-19.404
-25.149
-21.963
40.914
-29.042

OPEN
462.43
1,073.90
138.57
1,704.40
535.45
255.00
489.65
420.94
103.76
1,884.61
4,105.60
66.24
2,296.03
290.43
489.31
48,081.28
1,742.41
122.75
1,049.68
1,056.81
1,144.20
525.56
505.31
67,040.11
730.20
279.45
255.01
595.38
708.61
4,633.99
600.02
778.75
1,928.16
1,296.63
137.69
1,613.28
926.30
782.62
502.54
415.38
327.03
361.12
1,339.42

HIGH
462.43
1,073.90
138.57
1,704.40
535.45
255.00
489.65
420.94
103.76
1,884.61
4,105.60
66.24
2,296.03
290.43
489.31
48,081.28
1,742.41
122.75
1,049.68
1,056.81
1,144.20
525.56
505.31
67,040.11
730.20
279.45
255.01
595.38
708.61
4,633.99
600.02
778.75
1,928.16
1,296.63
137.69
1,613.28
926.30
782.62
502.54
415.38
327.03
361.12
1,339.42

Global Commodity Prices

Unit Trusts

Effective date: 5th Aug 2015

Effective date: 4th Aug 2015

AGRO COMMODITIES

LOW
462.43
1,073.90
138.57
1,704.40
535.45
255.00
489.65
420.94
103.76
1,884.61
4,105.60
66.24
2,296.03
290.43
489.31
48,081.28
1,742.41
122.75
1,049.68
1,056.81
1,144.20
525.56
505.31
67,040.11
730.20
279.45
255.01
595.38
708.61
4,633.99
600.02
778.75
1,928.16
1,296.63
137.69
1,613.28
926.30
782.62
502.54
415.38
327.03
361.12
1,339.42

CLOSE
454.76
1,056.32
140.20
1,898.89
573.23
279.41
520.46
453.98
106.00
1,956.56
4,126.45
74.37
2,319.66
280.63
471.29
50,449.25
1,761.60
125.47
1,016.71
1,034.34
1,132.80
545.05
509.51
68,756.23
670.35
269.21
258.81
639.09
752.45
4,712.90
594.51
762.15
2,103.65
1,297.55
132.93
1,675.49
965.02
790.99
521.95
440.53
348.99
320.20
1,368.46

EFFECTIVE DATE: 4TH AUGUST 2015

CURRENCY

DAILY YIELD

OLD MUTUAL

SH

7.43%

7.69%

BRITISH AMERICAN

SH

10.52%

11.09%

UAP

SH

10.53%

11.10%

GENCAP HELA

SH

11.63%

12.15%
15.35%

MONEY MARKET FUND

SOFTS
COMMODITY

CURRENCY LAST

SUGAR NO5

USD

348.70

NET CHNG
1.00

EFFECTIVE ANNUAL RATE

COFFEE

USD

162.30

-19.45

PAN AFRICA PESA+

SH

14.29%

COCOA

USD

3,159.00

-6.00

AMANA

SH

10.59%

11.12%

MADISSON

SH

10.27%

10.79%

ICEA

SH

9.93%

10.44%

CIC

SH

11.94%

12.68%

CBA

SH

9.67%

10.08%

RUBBER

MSCI Emerging Markets Sector Indices

NAME
LAST PCT.CHNG
462.43
1.69
CI-UAE
1,073.90
1.66
CI-AC AMER.
138.57
-1.17
CI-ASIA PAC
1,704.40
-10.24
CI-ARGENTINA
535.45
-6.59
CI-BRIC
255.00
-8.74
BRIC
489.65
-5.92
BRIC GROWTH
420.94
-7.28
BRIC VALUE
103.76
-2.12
CI-BAHRAIN
1,884.61
-3.68
CI-BRAZIL FREE
4,105.60
-0.51
CI-CHILE
66.24
-10.94
CI-CHINA FREE
2,296.03
-1.02
CI-COLOMBIA
3.49
CI-CZECH REPUBLI 290.43
489.31
3.82
CI-EU
48,081.28
-4.69
CI-EM
1,742.41
-1.09
CI-EGYPT
122.75
-2.17
CI-C.FE
1,049.68
3.24
CI-HUNGARY
1,056.81
2.17
CI-INDIA
1,144.20
1.01
CI-JOEG & MA
525.56
-3.58
CI-KOREA
505.31
-0.82
CI-KUWAIT
-2.5
CI-EM L.AMERICA 67,040.11
730.20
8.93
CI-SRI LANKA
279.45
3.8
CI-MOROCCO
255.01
-1.47
CI-EM E.EUROPE
595.38
-6.84
CI-EM FAR EAST
708.61
-5.83
CI-EM ASIA
4,633.99
-1.67
CI-EM EUROPE
0.93
CI-MALAYSIA FREE 600.02
778.75
2.18
CI-OMAN
1,928.16
-8.34
CI-PERU
1,296.63
-0.07
CI-PHILIPP.FREE
137.69
3.58
CI-PAKISTAN
1,613.28
-3.71
CI-POLAND
926.30
-4.01
CI-QATAR
782.62
-1.06
CI-RUSSIA
-3.72
CI-THAILAND FREE 502.54
415.38
-5.71
CI-TURKEY
327.03
-6.29
CI-TAIWAN
361.12
12.78
CI-ISRAEL
CI-SOUTH AFRICA 1,339.42
-2.12

A tourist holds
horns at the fetish
market in the heart
of the rundown
Akodessewa district
of Lome, yesterday.
The fetish market,
where all manner
of ailments are
treated including
malaria and typhoid
fever to erectile
dysfunction,
asthma and
tuberculosis, is
famous across west
Africa. AFP

1600
1600
1900
2800

5000
3200
2700
3000
500

300

Lome

5500
5800
4400
5500
6000
9000
4000
1700
15000

3000
3500
1800
2500
1800

270

Fetish maket

JPY

187.00

2.00

FROZEN OJ CON1 USC

131.80

3.65

COTTON NO2

65.01

-0.35

USC

STANLIB

GRAINS

SH

10.27%

10.77%

USD

96.21

96.21

CURRENCY

BUY

SELL

SH

111.29

115.33

USD

94.27

94.27

SH

9.55

9.79

OLD MUTUAL / TOBOA

SH

150.00

159.72

BRITISH AMERICAN

SH

181.69

187.00

GENCAP ENEZA

SH

116.85

121.09

NABO AFRICA

CORN

USC

368.25

-0.50

FIXED INCOME FUND

MAIZE EUR

EUR

155.75

1.25

GENCAP HAZINA

WHEAT

USC

494.00

0.50

ROUGH RICE

USD

11.45

0.00

OILSEEDS

NABO AFRICA
CIC
BALANCED FUND

SOY BEANS

USC

980.00

4.00

SOY BEAN OIL

USC

30.03

0.20

UAP

SH

10.43

10.96

CANOLA

CAD

506.90

0.90

AMANA

SH

121.20

121.20

PALM OIL

MYR

2,264.00

-8.00

MADISSON

SH

58.95

62.20

PAN AFRICA CHAMA+

SH

10.21

10.53
125.07

METALS & MINING

SYMBOL

CURRENCY

LAST

NET CHG

STANLIB

SH

125.07

CIC

SH

13.04

13.66

ICEA

SH

128.88

135.66

USD

103.39

103.39

NABO AFRICA
EQUITY FUND

100 OZ GOLD

USD

1,084.50

-6.20

OLD MUTUAL

SH

360.84

386.63

SILVER

JPY

56.00

-3.00

OLD MUTUAL EAST AFRICA FUND

SH

145.01

153.47

HG COPPER

USC

2.36

0.02

BRITISH AMERICAN

SH

187.05

193

CBA

SH

151.26

151.26

PLATINUM

JPY

3,802.00

-5.00

ALUMINIUM

CNY

12,010.00

5.00

PALLADIUM

JPY

2,385.00

-85.00

OIL& GAS
SYMBOL

AMANA

SH

119.62

119.62

GENCAP HISA

SH

120.39

124.75

MADISSON

SH

44.40

47.14

ICEA

SH

135.13

142.25

UAP

SH

9.39

STANLIB

SH

172.06

CIC
CURRENCY LAST

NET CHG

LIGHT CRUDE

USD

45.94

0.20

NO 2 HT OIL

USD

1.55

BRENT CRUDE

USD

50.22

NABO AFRICA

9.86
172.06

SH

13.67

14.39

USD

96.38

96.38

BOND FUND
OLD MUTUAL BOND FUND

SH

97.08

99.39

0.00

BRITISH AMERICAN

SH

136.82

139.61

0.23

ICEA

SH

91.39

92.31

UAP

SH

11.15

11.15

PAN AFRICA PATA+

SH

9.61

9.91

GAS OIL

USD

471.75

-1.50

NATURAL GAS

USD

2.82

0.01

STANLIB FUND B1

SH

98.17

98.17

KEROSINE

JPY

50,350.00

650.00

STANLIB FUND A

SH

97.41

97.41

SH

107.23

112.88

SHARIAH COMPLIANT
SOURCE: THOMSON REUTERS

GENCAP IMAN

Thursday August 6, 2015 | BUSINESS DAILY

23

MARKETDATA
DATA
MARKET

Asian stocks
mixed on
US ate talk,
China feas
Asian markets were mixed yesterday, buoyed by a possible US interest
rate hike even as Chinas ability to
stem a recent market rout weighed
on sentiment.
The dollar advanced against other
major currencies after a US Federal
Reserve ocial expressed support
Tuesday for lifting interest rates at
the central banks September policy
meeting.
Tokyo put on 0.23 per cent, Hong
Kong added 0.13 per cent, Shanghai
fell 0.26 per cent, Seoul was at and
Sydney shed 0.70 per cent.
Dealers were reacting to Federal
Reserve Bank of Atlanta President
Dennis Lockharts statement that
he supports lifting rates in September barring an unexpected stumble
in the economy.
In Shanghai, investors took profits after strong gains the previous
day sparked by new restrictions on
short-selling.
The Shanghai and Shenzhen exchanges said investors who borrow
shares must wait until the next day to
repay the loans, instead of settling the
same day as under previous rules.

WINNERS AND LOSERS - YTD

Kakuzi

Williamson Tea
Kenya

390.00
0.00%

Jan 15

Jul 15
23.77
16.41
10.26%

Earnings per share

Price to earnings ratio (p/e)
Dividend Yield

Pan
Africa
Uchumi
Kenya

325.00
1.25%

Jan 15

Jul 15

Housing
EABL Finance

Jul 15

Jan 15

244.00
21.50
7.49%
-2.27%

Jul 15

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

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

Dividend
Yield
Dividend
Yield

Kapchorua Tea

Sasini
Kenya

Jan 15

8.17
39.78
1.15%

Earnings per share

Price to earnings ratio (p/e)
Dividend Yield

67.0018.80 Kenya
Kenya
0.00%
2.17%

Kenya

Jan 15

Kenya

16.00
0.00%

Jul 15
0.54
29.63
1.56%

Earnings per share

Price to earnings ratio (p/e)
Dividend Yield

CNational
& G Bank
Kenya

Jan 15

Earningsper
pershare
share
4.21
8.82 Earnings
Pricetotoearnings
earningsratio
ratio(p/e)
(p/e)
5.11
27.66 Price
DividendYield
Yield
6.98%
2.25% Dividend

30.25
20.75
-3.20%
3.75%

Jul 15

Kenya

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

Transcentury
Kenya
Airways
Kenya
Kenya

Jan 15

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

Limuru Tea
209.00
-4.13%

Jul 15
-5.82
-35.91
2.39%

11.75
15.00
0.00%
0.00%

Jul 15

Kenya

1090.00
0.00%

Jan 15

Jul 15
-0.28
0.09%

Earnings per share

Price to earnings ratio (p/e)
Dividend Yield

Crown
KPLC Berger
Kenya
Kenya

62.00
14.45
-0.80%
0.35%

Jan 15

Jul 15

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

2.23
9.01
6.48
6.88
0.00%
2.82%

Greater risk
Short-selling a bet that the price of
a stock will fall requires investors
to borrow the stocks they do not own
to carry out the deal, so obliging them
to maintain their positions overnight
exposes them to greater risk.
Traders were also taking note of
a International Monetary Fund declaration Tuesday that signicant
work needs to be done in reviewing
the inclusion of Chinas currency in
its basket of special drawing rights
reserve currency.
The Chinese government is seeking to expand use of the yuan, also
known as the renminbi (RMB), by
having it included in the SDR, an international reserve asset that currently is comprised by four currencies: the
dollar, euro, pound and yen.
Tokyo ticked up after a brief slide
in opening trade, rising on positive
earnings reports and a weaker yen,
but analysts advised caution.
The overseas environment will
continue to be a drag on the market,
Hiroichi Nishi, a manager at SMBC
Nikko Securities Inc. in Tokyo, told
Bloomberg News. Lockharts comments made the market wary of rate
hikes once again. Caution toward the
Chinese economy continues to weigh
on the market as well.
US stocks ended lower Tuesday
following a mixed batch of earnings
reports and a fall by Apple of 3.2 per
cent, leaving it down more than 12
per cent since its July 21 earnings
release.

Tracking the markets: Benchmark Index (Latest Data)

Africa
DSE All Share

USE All Share

JSE All Share Index

1,880.00
0.32%

52,895.07
0.87%

Jan 15

Jul 15

Jan 15

NGSE All share

Tanzania

Uganda

South Africa

Jul 15

RSE All Share

Nigeria

Rwanda

2,523.02
-0.61%

Jan 15

Jul 15

143.20
-0.34%

31,409.65
3.12%

Jan 15

Jul 15

Jan 15

Jul 15

World
DJ Industrial

Xetra Dax
11,584.96
1.13%

17,550.69
-0.27%

Jan 15

Jul 15

Jan 15

Jul 15

Mumbai

Tokyo

Hongkong

Jul 15

28,243.06
0.61%

20,614.06
0.46%

24,514.16
0.44%

Jan 15

Sensex

Nikkei

HangSeng

Frankfurt

New York

Jan 15

Jul 15

Jan 15

Jul 15

24

BUSINESS DAILY | Thursday August 6, 2015

MARKET DATA
African Indices

Nairobi Stocks

NAME

NSE 20 Share Index

4,317.23
-0.60%

Nairobi

NSE 20 - SHR IDX

LUSE ALL SHARE INDEX
JSE ALL SHARE INDEX
ALSIUG

Jan 15

july 15

FTSE Pan African Index

1,142.24
0.70%

Nairobi

Jan 15

july 15

Active
Active Counters
Counters
Price fri

Price fri

Last

Prev

Change

Total Shares
Traded

Safaricom

13.95

14.00

-0.36%

27,585,400

Equity

39.25

38.75

1.29%

19,663,400

KCB

46.00

47.00

-2.13%

9,614,700

KenolKobil

8.50

8.35

1.80%

1,456,200

Mumias

2.00

1.90

5.26%

1,134,400

Gainers
Sameer
EAPC

Price fri

Net

Change

Chng

8.89%

4.90

4.50

0.40

58.00

54.00

4.00

7.41%

Mumias

2.00

1.90

0.10

5.26%

NBK

20.75

20.00

0.75

3.75%

Longhorn Publishers 7.00

6.85

0.15

2.19%

Losers
Counter

price fri
Last

price fri
Prev

Net
Change

%
Chng

Marshalls

12.00

13.10

-1.10

-8.40%

Express (K)

4.60

4.95

-0.35

-7.07%

Flame Tree Group

7.50

7.95

-0.45

-5.66%

KQ

5.10

5.35

-0.25

-4.67%

36.25

38.00

-1.75

-4.61%

WPP Scangroup

MARKET UPDATES

CLOSE

4,343.16

4,343.16

4,343.16

4,343.16

ZAMBIA

5,840.89

-2.30

-0.04%

5,844.40

5,848.80

5,840.89

5,843.19

SOUTH AFRICA

52,895.07

457.23

0.87%

52,539.17

52,930.56

52,539.17

52,437.84

6.00

0.32%

1,874.00

1,874.00

1,874.00

1,874.00

0.00

0.00%

145.42

145.42

145.42

145.42

CFG INDEX

MOROCCO

20,965.96

-61.83

-0.29%

21,009.90

21,043.25

20,960.74

21,027.79

MALAWI

16,060.05

0.00

0.00%

16,060.05

16,060.05

16,060.05

16,060.05

NIGERIA

31,409.65

950.79

3.12%

30,458.86

31,413.08

30,458.86

30,458.86

TANZANIA

2,523.02

-15.57

-0.61%

2,538.59

2,538.59

2,538.59

2,538.59

RSE ALLSHARE IND

145.82
-0.29%

Nairobi

Prev

LOW

-0.60%

EGYPT

8,114.08

-67.87

-0.83%

8,182.13

8,204.10

8,114.08

8,181.95

TUNISIA

5,644.35

14.64

0.26%

5,630.78

5,645.19

5,618.42

5,629.71

RWANDA

143.20

-0.49

-0.34%

143.20

143.20

143.20

143.69

Daily Share Report

All Share Index (NASI)

last

PCT.CHNG

145.42

TUN MAIN INDEX

Price fri

HIGH

-25.93

1,880.00

EGX 30 IDX/D

Counter

NET.CHNG

UGANDA

DSE ALL SHR IDX

Counter

OPEN

4,317.23

ZIMBABWE

NSE ALL SHARE/D

july 15

LAST

KENYA

ZSE INDUSTRIAL

MALAWI ALL SHR

Jan 15

LOCATION

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

52 WK
LOW

YTD
%

VWA
LAST
PRICE

VWA
PREV
PRICE

DAILY
PRICE
CHANGE

DAILY
TRADED
SHARES

30.00
113.00
115.00
650.00
11.50
240.00

-22.62%
78.33%
59.12%
41.37%
0.00%
24.51%
57.26%

32.75
325.00
209.00
1090.00
27.50
16.00
390.00

32.50
321.00
218.00
1090.00
27.50
16.00
390.00

0.77%
1.25%
-4.13%
0.00%
0.00%
0.00%
0.00%

37.25
8.15
4.50

-17.13%
33.67%
-25.00%

44.75
12.00
4.90

44.75
13.10
4.50

14.00
90.00
193.00
37.00
20.50
106.00
45.50
16.00
47.00
260.00
17.50

-14.97%
-21.77%
-12.77%
-22.50%
-51.91%
-13.82%
-17.54%
-19.19%
-16.09%
-20.90%
1.25%

14.20
95.50
204.00
39.25
21.50
106.00
46.00
20.75
49.00
265.00
19.65

9.50
4.50
5.00
6.45
175.00
31.50
32.00
6.50
35.00

-20.16%
0.00%
-38.51%
-25.95%
-28.90%
12.23%
-12.16%
-33.33%
-16.02%

61.00
135.00
54.00
14.00
51.00

MKT CAP.
KSH 000

EPS
LATEST
12MNTH

P/E
TRAILING

PBV
TRAILING

DPS
LATEST
12MNTH

TOTAL
DIVIDEND
YIELD

3,900
1,700
700
3,600
-

32,157,000
1,053,141,750.0
19,599,999 6,369,999,675.0
3,912,000
817,608,000.0
1,800,000 1,962,000,000.0
60,000,000 1,650,000,000.0
228,055,500 3,648,888,000.0
8,756,320 3,414,964,800.0

0.18
8.17
-5.82
-0.28
5.85
0.54
23.77

181.94
39.78
-35.91
4.70
29.63
16.41

2.62
2.20
0.59
5.31
0.74
0.58
0.54

0.00
3.75
5.00
1.00
0.00
0.25
40.00

0.00%
1.15%
2.39%
0.09%
0.00%
1.56%
10.26%

0.00%
-8.40%
8.89%

100
1,200

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

1,794,623,033.0
172,717,272.0
1,363,877,725.7

6.57
-11.90
-0.24

6.81
-1.01
-20.42

0.86
0.44
0.58

0.60
0.00
0.00

1.34%
0.00%
0.00%

14.20
97.00
205.00
38.75
22.00
106.00
47.00
20.00
48.25
265.00
20.25

0.00%
-1.55%
-0.49%
1.29%
-2.27%
0.00%
-2.13%
3.75%
1.55%
0.00%
-2.96%

109,900
4,900
150,600
19,663,400
20,100
9,614,700
44,500
64,400
14,800
1,068,500

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

77,127,811,200.0
37,753,216,429.0
49,390,461,420.0
145,333,998,035.0
7,576,958,340.5
41,590,376,134.0
139,160,112,272.0
6,391,000,000.0
31,357,334,547.0
81,927,271,210.0
96,075,065,196.8

1.54
14.38
21.92
4.55
4.21
13.56
5.63
3.11
7.07
33.21
1.64

9.22
6.64
9.31
8.63
5.11
7.82
8.17
6.67
6.93
7.98
11.98

2.38
1.64
2.14
2.82
0.83
1.90
2.15
0.47
1.51
2.26
2.24

1.00
6.15
2.40
1.80
1.50
2.90
2.00
0.00
1.00
17.00
0.50

7.04%
6.44%
1.18%
4.59%
6.98%
2.74%
4.35%
0.00%
2.04%
6.42%
2.54%

9.50
4.60
20.25
5.10
7.00
184.00
39.00
33.00
6.55
36.25

9.50
4.95
20.25
5.35
6.85
187.00
39.00
32.50
6.70
38.00

0.00%
-7.07%
0.00%
-4.67%
2.19%
-1.60%
0.00%
1.54%
-2.24%
-4.61%

200
316,000
17,600
202,600
400
1,900
4,400

433,063,193
4,114,100,333.5
35,403,790
162,857,434.0
360,000
7,290,000.0
1,496,469,035 7,631,992,078.5
243,750,000 1,706,250,000.0
188,542,286 34,691,780,624.0
81,731,808 3,187,540,512.0
182,174,108 6,011,745,564.0
364,959,616 2,390,485,484.8
378,865,102 13,733,859,947.5

-0.04
-2.18
-18.34
-2.25
1.62
13.10
2.57
1.35
1.45
1.50

-237.50
-2.11
-1.10
-2.27
4.32
14.05
15.18
24.44
4.52
24.17

0.82
2.44
0.94
4.24
1.76
0.54
0.59
1.68

0.00
0.00
0.00
0.00
2.00
10.00
0.50
1.35
0.30
0.00

0.00%
0.00%
0.00%
0.00%
28.57%
5.43%
1.28%
4.09%
4.58%
0.00%

-27.91%
9.35%
-43.69%
-4.01%
-6.90%

61.00
154.00
62.00
15.85
58.00

62.00
152.00
62.50
15.55
54.00

-1.61%
1.32%
-0.80%
1.93%
7.41%

5,700
10,800
2,000
4,500
3,300

495,275,000 30,211,775,000.0
362,959,275 55,895,728,350.0
23,727,000 1,471,074,000.0
253,125,000 4,012,031,250.0
90,000,000 5,220,000,000.0

3.01
9.80
9.01
1.37
-4.30

20.27
15.71
6.88
11.57
-13.49

3.72
1.93
1.08
1.66
1.08

0.60
12.00
1.75
1.00
0.00

0.98%
7.79%
2.82%
6.31%
0.00%

8.00
7.55
13.00
20.25
16.00

-19.42%
-4.02%
9.34%
-13.54%
-19.05%

8.40
8.50
16.05
20.50
17.00

8.30
8.35
15.80
20.75
17.00

1.20%
1.80%
1.58%
-1.20%
0.00%

95,400
1,456,200
115,200
1,700
229,100

2,198,361,456 18,466,236,230.4
1,471,761,200 12,509,970,200.0
1,951,467,045 31,321,046,072.3
175,028,706 3,588,088,473.0
1,623,878,005 27,605,926,085.0

1.29
0.74
3.31
2.26
1.34

6.51
11.49
4.85
9.07
12.65

0.27
1.88
0.72
0.70
3.01

0.40
0.20
0.50
0.70
0.90

4.76%
2.35%
3.12%
3.41%
5.31%

14.00
6.00
370.00
15.45
17.00
60.00

-42.18%
-20.83%
24.44%
-4.11%
-9.68%
-44.17%

17.15
7.55
560.00
16.50
21.25
67.00

17.20
7.60
560.00
16.35
21.00
67.00

-0.29%
-0.66%
0.00%
0.92%
1.19%
0.00%

256,800
495,000
100
7,100
12,200
300

1,938,415,838 33,243,831,621.7
2,615,538,528 19,747,315,886.4
59,895,000 33,541,200,000.0
699,949,068 11,549,159,622.0
535,707,499 11,383,784,353.8
96,000,000 6,432,000,000.0

1.31
0.43
48.00
4.48
2.14
9.07

13.09
17.56
11.67
3.68
9.93
7.39

1.92
2.44
3.14
0.64
2.15
1.93

0.30
0.10
8.50
0.70
0.50
0.00

1.75%
1.32%
1.52%
4.24%
2.35%
0.00%

45.00
2.30
1500.00
2.50
12.00

-18.03%
-39.02%
-6.73%
-22.48%

50.50
2.55
1500.00
4.85
15.00

50.00
2.50
1500.00
4.85
15.00

1.00%
2.00%
0.00%
0.00%
0.00%

118,900
80,700
1,500
520,000

665,441,775 33,604,809,637.5
405,255,320 1,033,401,066.0
102,272
153,408,000.0
40,000,000
194,000,000.0
280,284,476 4,204,267,140.0

10.44
-0.04
-62.40
-1.04
-8.53

4.84
-63.75
-24.04
-4.66
-1.76

1.66
0.25
0.79

0.00
0.00
0.00
0.00
0.00

0.00%
0.00%
0.00%
0.00%
0.00%

20.00

20.00

0.00%

150,200

194,625,000 3,892,500,000.0

2.13

9.39

5.33

0.38

1.90%

1.78
9.79
2.63
8.54
2.40

0.00%
3.91%
5.74%
1.76%
2.03%
0.00%
0.00%
0.00%
0.00%
1.72%
4.59%

15.00

SHARES
ISSUED

120.00
652.00
14.00
262.00
2.65
7.15
10.50
1.35
32.00

0.00%
6.40%
-18.17%
-20.46%
-4.22%
1.35%
-9.09%
-2.56%
13.21%

11.10
133.00
741.00
17.05
295.00
3.70
7.50
100.00
2.00
43.50

11.10
133.00
743.00
17.30
295.00
3.75
7.95
100.00
1.90
45.00

0.00%
0.00%
-0.27%
-1.45%
0.00%
-1.33%
-5.66%
0.00%
5.26%
-3.33%

6,200
30,100
326,200
5,800
6,400
1,134,400
2,300

3,840,066
42,624,732.6
19,525,446 2,596,884,318.0
100,000,000 74,100,000,000.0
254,851,988 4,345,226,395.4
790,774,356 233,278,435,020.0
210,000,000
777,000,000.0
161,866,804 1,214,001,030.0
12,868,124 1,286,812,400.0
1,530,000,000 3,060,000,000.0
75,708,873 3,293,335,975.5

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

-5.50
11.31
17.41
8.83
26.08
-4.35
7.58
666.67
-1.13
11.92

526.32
0.29
0.70

0.00
5.20
42.50
0.30
6.00
0.00
0.00
0.00
0.00
0.75

11.85

-0.36%

13.95

14.00

-0.36%

27,585,400

40,065,428,000 558,912,720,600.0

0.80

17.44

6.98

0.64

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

Thursday August 6, 2015 | BUSINESS DAILY

MARKET DATA

MARKET DATA
Equities & Bonds
Kenya Treasury and Infrastructure Bonds

Share Price Performance Scorecard

SCORECARD AS AT 5TH AUGUST 2015
NAME
A BAUMANN
ATLAS DEVPNT & SPPRT SERV
ATHI RIVER MINING
BAMBURI
BARCLAYS KEN
BAT KENYA
BOC KENYA
BRITISH AMERICAN
CAR & GENERAL
CARBACID INV
CENTUM INV
CFC STANBIC BANK
CIC INSURANCE
CO-OP BANK
CROWN BERGER
DIAMOND KEN
EA CABLES
EA PORT CEM
EAAGADS
EA AFR BREW
EQUITY BANK
EVEREADY EA
EXPRESS KEN
FLAME TREE HLDNGS
G WILLIAMSON
HUTCHINGS BIEMER
HOME AFRICA LIMITED
HOUSING FIN
I&M HOLDING
JUBILEE HLDS
KAKUZI
KAPCHORUA
KEN ORCHARDS
KENGEN
KENYA AIRWAYS
KENYA COM BK
KENOLKOBIL
KENYA POWER
KENYA RE
KURWITU
LIBERTY HOLDINGS
LIMURU TEA
LONGHORN
MARSHALL
MUMIAS SUGAR
NAIROBI SECURITIES
NATION MEDIA
NATL BANK KEN
NIC BANK
OLYMPIA CAPITAL
PAN AFR INS
REA VIPINGO
SAFARICOM
SAMEER AFRICA
SASINI
WPP SCANGROUP
STANDARD GRP
STD CHART KEN
TOTAL KENYA
TPS (EA)
TRANSCENTURY
UCHUMI SUPER
UNGA GROUP

PREVIOUS
11.10
9.50
62.00
152.00
14.20
743.00
133.00
17.20
44.75
17.30
50.00
97.00
7.60
20.25
62.50
205.00
15.55
54.00
32.50
295.00
38.75
3.75
4.95
7.95
390.00
20.25
2.50
22.00
106.00
560.00
321.00
218.00
100.00
8.30
5.35
47.00
8.35
15.80
16.35
1500.00
21.00
1090.00
6.85
13.10
1.90
20.00
187.00
20.00
48.25
4.85
67.00
27.50
14.00
4.50
16.00
38.00
39.00
265.00
20.75
32.50
15.00
6.70
45.00

CLOSE
11.10
9.50
61.00
154.00
14.20
741.00
133.00
17.15
44.00
17.05
50.50
95.50
7.55
19.65
62.00
204.00
15.85
58.00
32.75
295.00
39.25
3.70
4.60
7.50
390.00
20.25
2.55
21.50
106.00
560.00
325.00
209.00
100.00
8.40
5.10
46.00
8.50
16.05
16.50
1500.00
21.25
1090.00
7.00
12.00
2.00
20.00
184.00
20.75
49.00
4.85
67.00
27.50
13.95
4.90
16.00
36.25
39.00
265.00
20.50
33.00
15.00
6.55
43.50

% 1D
0.00
0.00
-1.61
1.32
0.00
-0.27
0.00
-0.29
0.00
-1.45
1.00
-1.55
-0.66
-2.96
-0.80
-0.49
1.93
7.41
0.77
0.00
1.29
-1.33
-7.07
-5.66
0.00
0.00
2.00
-2.27
0.00
0.00
1.25
-4.13
0.00
1.20
-4.67
-2.13
1.80
1.58
0.92
0.00
1.19
0.00
2.19
-8.40
5.26
0.00
-1.60
3.75
1.55
0.00
0.00
0.00
-0.36
8.89
0.00
-4.61
0.00
0.00
-1.20
1.54
0.00
-2.24
-3.33

% 5D
0.00
0.00
-13.48
1.32
0.35
-7.14
0.00
-2.56
0.00
4.28
-5.61
0.53
7.86
-4.15
-2.36
0.99
1.60
7.41
-6.43
2.08
-3.68
-2.63
-7.07
-5.66
-2.26
0.00
2.00
-10.42
0.00
0.00
0.00
-5.00
0.00
-2.33
-25.00
-10.68
5.59
-0.31
0.61
0.00
-2.30
0.00
7.69
-8.40
5.26
2.83
-0.54
1.22
2.62
-3.00
-2.90
0.00
-8.22
1.03
-4.76
-5.23
-0.64
-6.36
-1.20
-7.69
0.33
-3.68
-3.33

% 1M
0.00
-13.24
-18.67
-1.28
-6.89
5.71
-5.00
-14.25
-4.79
-5.01
-20.47
-10.75
-0.66
-5.30
-11.43
-9.33
-0.94
3.57
-11.49
1.72
-13.26
-10.84
-16.36
-11.24
12.07
0.00
-12.07
-20.37
-9.40
-0.88
5.86
31.45
0.00
-7.69
-30.14
-16.36
0.59
-11.33
-7.56
0.00
-14.14
0.00
-4.76
-6.25
-11.11
-1.23
-8.46
4.80
-4.85
1.04
-10.67
0.00
-14.68
-3.92
-2.74
-11.04
0.00
-12.83
-9.89
-0.75
7.14
-20.61
-7.45

% 3M
0.00
-11.21
-23.27
4.76
-10.13
2.92
1.53
-26.24
-8.21
-14.75
-21.71
-22.98
-17.93
-9.66
-46.09
-13.19
0.32
5.45
-3.68
-10.06
-19.90
-7.50
-20.00
-16.67
42.34
0.00
-21.54
-35.34
-22.63
-5.08
10.17
67.20
-4.76
-14.72
-26.62
-25.81
-8.11
-7.23
-3.51
0.00
-6.59
14.50
-8.50
0.00
-2.44
2.30
-18.22
0.00
-16.95
-10.19
-44.63
0.00
-20.29
-9.26
-3.32
-17.61
11.43
-19.45
-16.33
-5.04
6.01
-36.71
-2.79

% 6M
0.00
-20.17
-26.95
0.65
-14.97
-17.67
-13.64
-42.35
-16.36
-36.85
-21.09
-24.80
-30.73
-1.75
-53.38
-17.74
0.96
-3.33
-24.28
-5.45
-26.64
-9.76
-26.98
-7.98
34.48
0.00
0.00
-47.24
-14.52
10.02
60.10
48.23
-9.09
-13.85
-53.21
-22.03
-13.27
3.88
-6.78
0.00
-12.37
7.18
-25.93
7.14
-32.20
0.50
-31.60
-20.95
-25.76
-25.95
-42.74
0.00
-4.12
-22.22
22.61
-17.61
0.00
-22.06
-22.64
-11.41
0.00
-47.60
3.57

% 1Y
0.00
-22.78
-11.49
-16.47
6.62
-5.67
-27.79
-0.56
-36.26
2.54
-25.39
0.00
2.08
-37.69
-15.00
-3.06
-23.68
-4.38
-3.91
-15.14
15.63
-31.34
35.42
0.00
0.00
-52.22
0.00
46.60
87.86
54.81
875.61
-14.29
-50.49
-21.37
3.66
19.33
-8.33
18.06
62.69
-58.46
33.33
-18.37
-40.26
-23.85
-19.67
-1.02
-48.06
0.00
10.71
-32.41
3.56
-22.87
22.83
-14.24
-10.87
-8.33
0.00
-47.39
31.82

Corporate Bonds
AUGUST 5, 2015

25

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE

ISSUE
MATURITY ISSUED VALUE
COUPON
DATE
DATE
IN MILLIONS
(%)
CENTUM BOND SENIOR UNSECURED FIXED RATE AND EQUITY LINKED NOTES
26-SEP-12
18-SEP-17 2,917.10
13.5000
CTNB.BD.18.09.17/13.50
26-SEP-12
18-SEP-17 1,250.80
12.7500
CTNB.BD.18.09.17/12.75
15-JUN-15
8-JUN-20 3,899.22
13.0000
CTNB.BD.08.06.20/13
15-JUN-15
8-JUN-20 2,100.77
12.5000
CTNB.BD.08.06.20/12.5
15-JUN-15
8-JUN-20 2,100.77
CTNB.BD.08.06.20/12.5V
CONSOLIDATED BANK OF KENYA LTD MEDIUM TERM NOTE PROGRAMME
30-JUL-12
24-JUL-19 1,480.60
13.2500
CON.BD-FXD(SN)/2012/7YR
30-JUL-12
22-JUL-19 196.50
13.6000
CON.BD-FXD(SBN)/2012/7YR
30-JUL-12
22-JUL-19 1.00
CON.BD-FR(SN)/2012/7YR
SHELTER AFRIQUE MEDIUM TERM NOTES
17-DEC-12
14-DEC-15 500.00
12.7500
FXD 2/2012/3YR 2ND TRANCHE
30-SEP-13
24-SEP-18 4,239.70
12.7500
FXD 1/13/05YR
30-SEP-13
24-SEP-18 760.30
FR 1/13/05YR
MRM
27-OCT-08
17-OCT-16 621.50
FR (MRM) 2008/8YR
27-OCT-08
17-OCT-16 1,378.50
13.0000
FXD (MRM) 2008/8YR
CFC STANBIC BANK SENIOR & SUBORDINATED BOND ISSUE
7-JUL-09
7-JUL-16
97.91
FR (CFC STANBIC) 2009/7YR
7-JUL-09
7-JUL-16
2,402.09
12.5000
FXD (CFC STANBIC) 2009/7YR
KENGEN PUBLIC INFRASTRUCTURE BOND OFFER 2019
2-NOV-09
31-OCT-19 14,062.00
12.5000
FXIB 1/2009/10YR
SAFARICOM LTD DOMESTIC MEDIUM TERM NOTE
20-DEC-10
20-DEC-15 200.00
FR2 (SAFARICOM LTD) 2009/5YR
20-DEC-10
20-DEC-15 4,287.00
8.0000
FXD2 (SAFARICOM LTD) 2009/5YR
HOUSING FINANCE MEDIUM TERM NOTE
14-OCT-19 2,969.10
13.0000
FXD (HFCK) 02/2012/7YR 2ND TRANCHE 22-OCT-12
26-OCT-10
2-OCT-17 1,166.50
FR (HFCK) 2010/7YR
26-OCT-10
2-OCT-17 5,864.40
8.5000
FXD (HFCK) 2010/7YR
I&M MEDIUM TERM NOTE
13-DEC-13
8-MAR-19 3,429.00
12.8000
FXD I&M-01/13/5.25
13-DEC-13
8-MAR-19 226.00
FRN I&M-01/13/5.25
BRITAM MEDIUM TERM NOTE
22-JUL-14
15-JUL-19 6,000.00
13.0000
BRTB.BD.22/07/19-0037-13
UAP HOLDINGS MEDIUM TERM NOTE
28-JUL-14
22-JUL-19 2,000.00
13.0000
UAP.BD.22.07.2019
NIC MEDIUM TERM NOTE
8-SEP-14
9-SEP-19 5,514.50
12.5000
NIC.BD.09/09/19-0039-12.5
CIC INSURANCE GROUP LTDMEDIUM TERM NOTE
8-OCT-14
2-OCT-19 5,000.00
13.0000
CIC.BD.22.07.2019
CFC STANBIC MULTICURRENCY MEDIUM TERM NOTE
15-DEC-14
8-DEC-21 5,080.00
12.9500
CFCB.BD.08/12/21-0042-12.95
CBA FIXED MEDIUM TERM NOTE
22-DEC-14
14-DEC-20 7,000.00
12.7500
CBAB.BD.14/12/20-0041-12.75
EABL FIXED MEDIUM TERM NOTE
23-MAR-15
19-MAR-18 9,047.35
12.2500
EABB.BD.19/03/18-0043-12.25
CHASE BANK FIXED MEDIUM TERM NOTE
10-JUN-15
2-JUN-22 4,822.40
13.2500
CHBD.BD.02/06/22-0044-13.5

PREVIOUS
PRICE (%)
105.2550
99.9620

99.1677
100.0000
100.7057
100.0000

TOTAL VALUE
TRADED(KSH)

BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE

ISSUE

MATURITY ISSUED VALUE

DATE

DATE

IN MILLIONS

AUGUST 5, 2015

COUPON
(%)

TRADED

PREVIOUS

YIELD (%)

PRICE(%)

TWO YEAR BONDS

FXD 3/2013/2YR

26-AUG-13

24-AUG-15 17,927.40

12.9390

100.8908

FXD 4/2013/2YR

24-DEC-13

21-DEC-15 25,251.00

11.5530

100.6244

FXD 1/2014/2YR

24-MAR-14

21-MAR-16 20,000.00

10.8030

100.0237

FXD 2/2014/2YR

26-MAY-14

23-MAY-16 20,130.15

10.7930

99.9909

FXD 3/2014/2YR

25-MAY-15

22-MAY-17 20,223.35

10.8900

97.9678

FXD 1/2015/2YR

23-JAN-15

20-FEB-17 23,592.55

11.4700

101.0594

FXD 2/2015/2YR

29-JUN-15

26-JUN-17 7,194.56

12.6290

100.3199

FIVE YEAR BONDS

FXD 2/2010/5YR

30-NOV-10

23-NOV-15 14,973.10

6.6710

98.3936

FXD 1/2011/5YR

31-JAN-11

25-JAN-16 22,083.10

7.6360

98.1667

FXD 1/2012/5YR

28-MAY-12

22-MAY-17 31,079.55

11.8550

100.9859

FXD 1/2013/5YR

29-APR-13

23-APR-18 20,240.75

12.8920

102.9309

FXD 2/2013/5YR

1-JUL-13

25-JUN-18 26,340.05

11.3050

100.3825

FXD 3/2013/5YR

25-NOV-13

19-NOV-18 14,937.80

11.9520

100.4719

FXD 1/2014/ 5YR

28-APR-14

22-APR-19 25,540.95

10.8700

96.9751

FXD 2/2014/ 5YR

23-JUN-14

17-JUN-19

16,418.25

11.9340

100.1528

FXD 1/2015/ 5YR

29-JUN-15

22-JUN-20 11,996.96

13.1930

96.7463

FXD 1/2006/10YR

27-MAR-06

14-MAR-16 3,451.05

14.0000

102.1563

FXD 2/2006/10YR

29-MAY-06

16-MAY-16 5,028.10

14.0000

102.8875

FXD 1/2007/10YR

29-OCT-07

16-OCT-17 9,308.80

10.7500

99.3880

FXD 1/2008/10YR

29-OCT-07

16-OCT-17 2,992.75

10.7500

99.3434

FXD 2/2008/10YR

28-JUL-08

16-JUL-18

10.7500

99.3210

FXD 3/2008/10YR

29-SEP-08

28-SEP-18 4,151.60

10.7500

99.2873

FXD 1/2009/10YR

27-SEP-09

15-APR-19 4,966.85

10.7500

96.5948

FXD 1/2010/10YR

26-APR-10

13-APR-20 19,394.15

8.7900

87.8868

FXD 2/2010/10YR

1-NOV-10

19-OCT-20 18,849.90

9.3070

90.0522

FXD 1/2012/10YR

25-JUN-12

13-JUN-22 16,803.75

12.7050

100.5957

FXD 1/2013/10YR

1-JUL-13

19-JUN-23 12,643.05

12.3710

98.3747

FXD 1/2014/10YR

25-MAY-15

26-MAY-25 5,063.88

12.1800

97.8447

25-SEP-06

11-SEP-17

4,031.40

13.7500

105.0256

FXD1/2006/12YR

28-AUG-06

13-AUG-18 3,900.95

14.0000

105.2139

FXD1/2007/12YR

28-MAY-07

13-MAY-19 4,864.60

13.0000

105.6743

FXD1/2007/15YR

26-MAR-07

7-MAR-22 3,654.60

14.5000

109.0397

FXD2/2007/15YR

25-JUN-07

6-JUN-22

7,236.95

13.5000

99.3108

17,568.00

TEN YEAR BONDS

13,504.70

ELEVEN YEAR BONDS

FXD1/2006/11YR
TWELVE YEAR BONDS

FIFTEEN YEAR BONDS

FXD3/2007/15YR

26-NOV-07

7-NOV-22

FXD1/2008/15YR

31-MAR-08

13-MAR-23 7,830.90

12.5000

99.4391

12.5000

100.6070

FXD1/2009/15YR

26-OCT-09

7-OCT-24

12.5000

98.3299

FXD1/2010/15YR

29-MAR-10

10-MAR-25 20,823.73

10.2500

88.1557

FXD2/2010/15YR

25-APR-11

8-DEC-25

13,513.10

9.0000

79.3778

FXD1/2012/15YR

24-SEP-12

6-SEP-27

21,089.45

11.0000

89.6086

FXD1/2013/15YR

25-FEB-13

7-FEB-28

40,886.33

11.2500

90.0657

FXD2/2013/15YR

29-APR-13

10-APR-28 17,385.85

12.0000

95.8528

106.2954

9,420.45

100.0000
100.0000

TWENTY YEAR BOND

100.0000
100.0000

FXD1/2008/20YR

30-JUN-08

5-JUN-28

20,360.95

13.7500

FXD1/2011/20YR

30-MAY-11

5-MAY-31

9,365.80

10.0000

79.8372

101.8271

FXD1/2012/20YR

26-NOV-12

1-NOV-32

43,082.72

12.0000

91.6965

93.8370
103.0000

TWENTY FIVE YEAR BOND

28-JUN-10

28-MAY-35 20,192.50

11.2500

82.0191

100.0000

THIRTY YEAR BOND

28-FEB-11

21-JAN-41 23,888.95

12.0000

87.0249

FXD1/2010/25YR

94.6653

SDB 1/2011/30YR

100.0000

INFRASTRUCTURE BONDS
IFB 1/2009/12YR

23-FEB-09

8-FEB-21

19,726.85

12.5000

105.1593

99.9562

IFB 2/2009/12YR

7-DEC-09

22-NOV-21 18,897.65

12.0000

102.4081

99.9807

IFB 1/2010/8YR

1-MAR-10

19-FEB-18 15,908.05

9.7500

98.5524

IFB 2/2010/9YR

31-AUG-10

19-SEP-19 32,871.55

6.0000

83.9920

IFB 1/2011/12YR

3-OCT-11

18-SEP-23 43,447.35

12.0000

100.7940
94.3676

97.8453
102.4933

TOTAL VALUE
TRADED(KSH)

IFB 1/2013/12YR

30-SEP-13

15-SEP-25 38,841.68

11.0000

IFB 1/2014/12YR

27-OCT-14

12-OCT-26 35,060.55

11.0000

100.9239

IFB 1/2015/12YR

30-MAR-15

15-MAR-27 25,695.35

11.0000

12.0000

82.9710

150,000,000

100.2003

IFB 1/2015/12YR

30-MAR-15

15-MAR-27 25,695.35

11.0000

14.5000

82.9710

700,000,000

99.9922

IFB 1/2015/12YR

30-MAR-15

15-MAR-27 25,695.35

11.0000

14.7500

82.9710

800,000,000

102.0180

86.4538

26

BUSINESS DAILY | Thursday August 6, 2015

MARKET DATA
Global Markets & Currencies
Currencies

Global Indexes

FTSE 100

Kenya Shilling
CURRENCY
US DOLLAR
STG POUND
EURO
SA RAND
KES / USHS
KES / TSHS
KES / RWF
KES / BIF
AE DIRHAM
CAN $
S FRANC
JPY (100)
SW KRONER
NOR KRONER
DAN KRONER
IND RUPEE
HONGKONG DOLLAR
SINGAPORE DOLLAR
SAUDI RIYAL
CHINESE YUAN
AUSTRALIAN $
SOURCE CBK

BUY
101.02
156.93
109.73
7.91
34.29
20.83
6.77
15.25
27.50
76.54
103.27
81.21
11.58
12.17
14.71
1.58
13.03
72.89
26.94
16.26
74.26

SELL
101.21
157.28
109.96
7.94
34.45
20.97
6.93
15.37
27.55
76.71
103.50
81.38
11.60
12.20
14.74
1.59
13.05
73.04
26.99
16.30
74.45

MEAN
101.11
157.10
109.85
7.92
34.37
20.90
6.85
15.31
27.53
76.63
103.39
81.30
11.59
12.19
14.72
1.58
13.04
72.97
26.96
16.28
74.35

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

BID
1.09
124.36
1.56
0.98
0.74
8.72
1.32
6.21
8.26
1.77
6.87
62.94
2.79
135.06
63.82
3.83
24.87
284.69
21.50
3.80
128.36
1.80
59.99
0.40
11.70
2.28
35.13
1.56
6.97
187.65
2.85
0.51
19.00
56.47
3.41
4.06
21.55
110.49
476.40
3.67
125.15
1,563.97
0.10
915.00
100.50
177.00
99.30
7.83
20.57
3.50
39.05
14.97
7,217.00
100.95
445.05
87.00
12.75
1.38
9.89
3,290.00
325.00
516.15
38.15
199.00
685.00
12.64
200.02
2,025.50
1.56
3,850.00
21,851.00
664.00
12.75
1.98
2,105.00
3,485.00
598.66
599.00
35.40
12.77
378.00

ASK
1.09
124.38
1.56
0.98
0.74
8.72
1.32
6.21
8.28
1.82
6.87
62.98
2.79
135.36
63.83
3.84
24.92
285.09
21.70
3.81
128.71
1.80
60.19
0.40
11.71
2.30
35.15
1.56
6.98
187.68
2.85
0.51
19.15
56.84
3.42
4.06
21.60
110.86
479.40
3.67
126.40
1,583.97
0.10
935.00
101.60
178.00
99.90
7.83
20.97
3.70
40.05
15.47
7,717.00
101.15
446.05
88.00
12.80
1.38
9.95
3,394.00
337.46
521.13
39.45
199.50
698.00
13.28
201.02
2,035.60
1.56
3,950.00
23,207.00
671.00
12.80
1.98
2,115.00
3,495.00
606.66
609.00
35.70
12.78
381.00

DAILY
INDEX (REGION/COUNTRY)

YTD

CLOSE

CHG

% CHG % CHG

52 WEEK
HIGH

LOW

3-YR
% CHG % CHG

GLOBAL
THE GLOBAL DOW (WORLD)

2,529.41

-6.02

-0.24

1.1

2,639.52

2,378.15

-0.9

11.1

THE GLOBAL DOW EURO (WORLD)

2,172.98

-2.79

-0.13

11.6

2,305.98

1,752.10

20.8

15.6

DJ GLOBAL INDEX (WORLD)

327.25

-0.22

-0.07

341.62

301.71

1.3

10.5

DJ GLOBAL EX U.S. (WORLD)

229.83

0.16

0.07

2.1

248.65

217.05

-5.5

6.6

DJ ASIA-PACIFIC TSM (ASIA-PACIFIC)

1,471.56

5.84

0.4

3.2

1,619.39

1,384.31

-2.9

7.3

ALL ORDINARIES (AUSTRALIA)

5,681.90

17.6

0.31

5.4

5,954.80

5,131.00

3.1

10.2
10.5

ASIA PACIFIC

S & P/ASX 200 (AUSTRALIA)

5,697.90

18.6

0.33

5.3

5,982.70

5,152.30

3.2

DOW JONES CHINA 88 (CHINA)

295.53

6.61

2.29

-0.2

408.69

185.09

53.4

14.6

SHANGHAI COMPOSITE (CHINA)

3,756.54

133.64

3.69

16.1

5,166.35

2,187.67

69.2

20.8

HANG SENG (HONG KONG)

24,406.12

-5.3

-0.02

3.4

28,442.75

22,585.84

-1

7.5

S & P BSE SENSEX (INDIA)

28,071.93

-115.13

-0.41

2.1

29,681.77

25,329.14

8.4

17.7

JAKARTA COMPOSITE (INDONESIA)

4,781.09

-19.09

-0.4

-8.5

5,523.29

4,712.49

-6.4

5.3

NIKKEI 300 (JAPAN)

336.77

-0.16

-0.05

18.4

340.64

238.07

31.8

31.7

NIKKEI STOCK AVG (JAPAN)

20,520.36

-27.75

-0.14

17.6

20,868.03

14,532.51

33.9

33.9

TOPIX INDEX (JAPAN)

1,659.83

0.23

0.01

17.9

1,679.89

1,177.22

31.4

31.9

KUALA LUMPUR COMPOSITE (MALAYSIA)

1,723.73

-20.46

-1.17

-2.1

1,878.89

1,673.94

-8.2

1.8

NZSX-50 (NEW ZEALAND)

5,933.75

-24.1

-0.4

6.6

5,957.85

5,049.63

16.3

18.7

KSE 100 (PAKISTAN)

35,921.71

97.15

0.27

11.8

36,056.68

27,774.43

21

34.8

PSEI (PHILIPPINES)

7,598.29

25.03

0.33

5.1

8,127.48

6,880.34

12.9

STRAITS TIMES (SINGAPORE)

3,191.04

-1.75

-0.05

-5.2

3,539.95

3,154.21

-4.1

1.5

KOSPI (SOUTH KOREA)

2,027.99

19.5

0.97

5.9

2,173.41

1,882.45

-1.9

3.1

COLOMBO STOCK EXCHANGE (SRI LANKA)

7,310.05

-26.54

-0.36

0.2

7,605.79

6,782.43

7.3

14

WEIGHTED (TAIWAN)

8,510.86

-13.55

-0.16

-8.6

9,973.12

8,510.86

-6.9

5.6

SET (THAILAND)

1,432.16

-9.88

-0.69

-4.4

1,615.89

1,408.07

-6.3

6.1

EUROPE
STOXX EUROPE 600 (EUROPE)

398.75

-0.69

-0.17

16.4

414.06

310.03

20.1

14.5

STOXX EUROPE 50 (EUROPE)

3,448.82

-7.47

-0.22

14.8

3,591.47

2,781.33

16.8

10.9

EURO STOXX 50 (EURO ZONE)

3,619.31

-16.09

-0.44

15

3,828.78

2,874.65

17.8

15.1

EURO STOXX (EURO ZONE)

373.94

-0.86

-0.23

17

392.35

288.41

20.8

16.6

ATX (AUSTRIA)

2,489.76

-9.68

-0.39

15.3

2,681.44

2,032.13

10.4

7.4

BEL-20 (BELGIUM)

3,801.21

1.87

0.05

15.7

3,905.71

2,887.73

23.9

18.2

PX 50 (CZECH REPUBLIC)

1,036.80

-4.22

-0.41

9.5

1,058.40

901.30

8.7

4.9

OMX COPENHAGEN (DENMARK)

915.45

-1.81

-0.2

35.6

921.05

611.68

37.6

27.4
18.4

OMX HELSINKI (FINLAND)

8,711.42

23.08

0.27

12.3

9,374.42

7,010.83

16

CAC 40 (FRANCE)

5,112.14

-8.38

-0.16

19.6

5,268.91

3,918.62

20.8

14.9

DAX (GERMANY)

11,456.07

12.35

0.11

16.8

12,374.73

8,571.95

24.7

18.6

BUX (HUNGARY)

22,553.44

-62.43

-0.28

35.6

22,850.53

15,686.69

27.8

8.5

FTSE MIB (ITALY)

23,473.25

-241.13

-1.02

23.5

24,031.19

18,078.97

17.1

18.4

AEX (NETHERLANDS)

500.02

-0.41

-0.08

17.8

509.24

376.27

25.5

14.8

ALL-SHARES (NORWAY)

681.97

-0.85

-0.12

10

711.22

575.27

0.3

12.6

WIG (POLAND)

52,941.88

133.7

0.25

57,379.45

49,593.68

4.1

9.3

PSI 20 (PORTUGAL)

5,710.92

-35.59

-0.62

19

6,324.88

4,606.25

-1.8

7.2

RTS INDEX (RUSSIA)

837.43

2.54

0.3

5.9

1,275.60

629.15

-29.7

-15.7

IBEX 35 (SPAIN)

11,150.50

-115.4

-1.02

8.5

11,866.40

9,669.70

7.7

18.2

SX ALL SHARE (SWEDEN)

529.67

-1.72

-0.32

11.8

564.90

405.51

19.9

16.8

SWISS MARKET (SWITZERLAND)

9,480.20

11.23

0.12

5.5

9,482.62

7,899.59

13.6

13.6

BIST 100 (TURKEY)

78,234.86

70.77

0.09

-8.7

91,412.94

72,943.50

-3

6.2

FTSE 100 (U.K.)

6,686.57

-2.05

-0.03

1.8

7,104.00

6,182.70

0.1

4.9

FTSE 250 (U.K.)

17,734.43

64.32

0.36

10.3

18,263.46

14,426.74

15.5

16.2

AMERICAS
DJ AMERICAS (AMERICAS)

509.03

-0.96

-0.19

0.4

524.44

464.33

12.5

MERVAL (ARGENTINA)

10,808.51

-90.93

-0.83

26

12,593.07

7,581.72

34

65.2

SAO PAULO BOVESPA (BRAZIL)

50,058.49

-79.56

-0.16

0.1

61,895.98

46,907.68

-10.9

-4.4

S & P/TSX COMP (CANADA)

14,491.05

22.61

0.16

-1

15,657.63

13,705.14

-4.6

7.5

SANTIAGO IPSA (CHILE)

3,092.53

11

0.36

-2.3

3,377.92

3,018.91

-4.9

-9.7

IPC ALL-SHARE (MEXICO)

45,177.98

274.03

0.61

4.7

46,357.24

40,225.08

1.6

3.3

CARACAS GENERAL (VENEZUELA)

15,284.42

-296.05

-1.9

296.1

15,580.47

2,139.62

600.3

295.5

SOURCE: WSJ MARKETS

Global Indices
NAME

LOCATION

LAST

NET.CHNG

DJ INDU AVERAGE

NEW YORK

17,550.69

-47.51

-0.27%

PCT.CHNG

OPEN

HIGH

LOW

CLOSE

17,596.93

17,635.78

17,505.50

17,598.20

FTSE EUROTOP 100

LONDON

3,185.60

24.93

0.79%

3,166.10

3,189.80

3,166.10

3,160.67

XETRA DAX PF/D

FRANKFURT

11,584.96

128.89

1.13%

11,503.21

11,587.72

11,497.92

11,456.07

CAC 40 INDEX/D

PARIS

5,167.84

55.70

1.09%

5,135.31

5,167.84

5,134.37

5,112.14

FTSE MIB/D

MILAN

23,661.14

187.89

0.80%

23,579.64

23,687.08

23,555.21

23,473.25

SMI PR/D

SWITZERLAND 9,486.20

6.00

0.06%

9,506.00

9,509.06

9,481.24

9,480.20

HANG SENG INDE/D

HONG KONG

24,514.16

108.04

0.44%

24,466.30

24,582.19

24,420.95 24,406.12
20,469.87 20,520.36

NIKKEI 225 INDEX

TOKYO

20,614.06

93.70

0.46%

20,490.15

20,715.48

ALL ORDINARIES

AUSTRALIA

5,659.48

-22.39

-0.39%

5,681.90

5,684.20

5,628.00

5,681.87

STRAITS TIMES/D

SINGAPORE

4,109.99

5.52

0.13%

4,089.20

4,113.83

4,070.48

4,104.47

SSE COMPOSITE/D

SHANGHAI

3,695.76

-60.78

-1.62%

3,745.65

3,782.35

3,676.39

3,756.54

S&P SENSEX/D

MUMBAI

28,243.06

171.13

0.61%

28,138.04

28,315.71

28,135.68

28,071.93

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

LAST
789.71
3212.00
1510.00
357.33
1163.00
581.00
945.50
261.00
524.50
4387.00
472.40
282.53
3818.50
1089.00
850.00
1187.50
1828.00
392.20
1605.00
466.85
3471.80
268.60
1028.00
1299.00
3085.00
1968.68
1800.00
171.64
102.20
1200.75
646.50
276.30
322.30
203.95
1402.00
670.00
1192.76
588.50
525.50
551.00
2663.00
1075.00
3375.00
2711.00
277.80
2914.71
153.70
367.30
1308.00
268.90
82.20
490.37
545.19
182.60
853.40
7983.25
219.10
848.00
428.00
1522.00
1199.00
6230.00
344.95
1839.00
1128.00
1850.19
559.00
2531.00
810.34
3807.00
524.64
3447.00
263.90
3201.00
2460.00
516.47
5450.00
444.50
1182.00
1196.00
125.70
1516.00
970.30
2196.00
549.50
242.50
213.90
2935.00
884.19
401.70
241.30
1519.00
4227.00
1481.00
5215.00
5.30

CLOSE
784.50
3240.00
1505.00
357.50
1169.00
574.50
948.50
261.90
524.50
4385.00
474.00
282.15
3821.00
1088.50
850.50
1159.00
1836.00
390.40
1595.00
469.50
3489.00
269.40
1029.00
1312.00
3079.00
1935.00
1790.00
172.60
101.20
1203.00
645.00
277.10
321.70
200.15
1401.00
670.00
1187.00
582.20
523.50
545.50
2678.00
1079.00
3392.00
2713.00
278.70
2912.00
154.60
365.20
1312.00
263.40
82.47
501.00
544.00
180.90
852.60
7985.00
219.20
849.50
427.10
1507.00
1194.00
6217.00
339.00
1830.50
1132.00
1845.00
558.00
2470.50
824.00
3807.00
526.50
3448.00
261.90
3176.00
2438.00
514.50
5395.00
439.70
1200.00
1194.00
125.40
1519.00
952.60
2200.00
550.00
244.10
210.70
2935.00
885.50
402.00
241.05
1508.00
4252.00
1472.00
5195.00
5.35

NET.CHNG
5.10
-28.00
5.00
-0.10
-6.00
6.50
-3.00
-0.90
0.00
2.00
-1.60
0.35
-2.50
0.50
-0.50
28.50
-8.00
1.80
10.00
-2.65
-18.00
-0.80
-1.00
-13.00
6.00
29.00
10.00
-0.90
1.00
-3.00
1.50
-0.80
0.60
3.80
1.00
0.00
6.00
6.30
2.00
5.50
-15.00
-5.00
-17.00
-2.00
-0.90
3.00
-1.10
2.10
-4.00
5.50
-0.27
-10.10
1.00
1.70
0.80
-5.00
-0.10
-1.50
0.90
15.00
5.00
13.00
6.00
8.50
-4.00
5.50
1.00
60.50
-13.50
0.00
-2.00
-1.00
2.00
25.00
22.00
2.00
55.00
4.80
-18.00
2.00
0.40
-3.00
17.70
-4.00
-0.50
-1.60
3.20
0.00
-1.50
-0.30
0.25
11.00
-25.00
9.00
20.00
-0.05

PCT.CHNG
0.65%
-0.86%
0.33%
-0.03%
-0.51%
1.13%
-0.32%
-0.34%
0.00%
0.05%
-0.34%
0.12%
-0.07%
0.05%
-0.06%
2.46%
-0.44%
0.46%
0.63%
-0.56%
-0.52%
-0.30%
-0.10%
-0.99%
0.19%
1.50%
0.56%
-0.52%
0.99%
-0.25%
0.23%
-0.29%
0.19%
1.90%
0.07%
0.00%
0.51%
1.08%
0.38%
1.01%
-0.56%
-0.46%
-0.50%
-0.07%
-0.32%
0.10%
-0.71%
0.58%
-0.30%
2.09%
-0.33%
-2.02%
0.18%
0.94%
0.09%
-0.06%
-0.05%
-0.18%
0.21%
1.00%
0.42%
0.21%
1.77%
0.46%
-0.35%
0.30%
0.18%
2.45%
-1.64%
0.00%
-0.38%
-0.03%
0.76%
0.79%
0.90%
0.39%
1.02%
1.09%
-1.50%
0.17%
0.32%
-0.20%
1.86%
-0.18%
-0.09%
-0.66%
1.52%
0.00%
-0.17%
-0.07%
0.10%
0.73%
-0.59%
0.61%
0.38%
-0.93%

Thursday August 6, 2015 | BUSINESS DAILY

LI E

SELLING

How sales people

dive away buyes
Page 29

27

SPORTS
KCB Rally etuns
to Machakos
Page 31

MANAGEMENT

EDUCATION Many local universities require a student to write a thesis or project but hold no meaningful criteria on quality

Why Kenya anks

low on quality of
academic eseach
put worthy of international acclaim and
publication.
According to London-based The Times
BUSINESS TALK
World University Rankings, 15 of the top 20
universities in the world hail from the US.
SCOTT BELLOWS
Interestingly, American institutions do not
require masters theses for most graduate
genda endeavoured to undertake
programmes. Students, especially in prohis MBA studies at one of Kenyas
fessional disciplines, may complete purely
leading universities. He carefully
taught programmes.
However, due to the Commission for Uniselected a programme with an appealing
versity Educations forced standardisation
array of classes that t his interests. He
across universities, Kenyans desiring masthen proceeded with his coursework and
ters degrees must complete a research-based
enjoyed the classroom learning. Finally,
thesis even for professional courses that does
Ogenda entered the research phase of his
not relate to their later employability.
MBA. He conducted research, questioning
Unfortunately, requiring a student to
whether customer service inuences bank
conduct research but holding no meaningclient acquisition. He received an A on his
research project along with glowing reviews
ful criteria on the quality of the research is
from his supervisor.
akin to testing whether a chef can slaughter
Bolstered by the positive feedback, Ogena chicken but with no consideration as to
da decided to apply for his PhD from one of
whether the chef sickens consumers who
Asias leading institutions of higher learning,
eat his poorly prepared meal.
the National University of Singapore. He sent
Many students pursue non-academic
his MBA thesis along with his application.
topics and try mental gymnastics to try and
Unfortunately, Ogenda received
t them into a research project.
an unfavourable response beThousands of Kenyan graducause his prior research did not
ate students ask simple yes or
Thee is a
meet international standards
no questions with answers almismatch
ready found hundreds if not
for academic rigour.
What should you do to avoid
between Kenyas thousands of times in literaa similar trap that Ogenda
ture. The same students also
numeous
found himself in?
possess little or no concept of
Unfortunately, East Africa
testing a theory or contributbight students
ing to a body of knowledge by
and Kenya specically suers
and ou low
from a lack of research quality
rening a theory. Ogendas
academic
that permeates most institutopic, for example, seems so
obvious and devoid of any acations. Students take research
eseach
demic theory that it ts more
methods courses and think
excellence
in a newspaper expose rather
they can then research on an
than a rigourous research
international scale. However,
most research courses focus on
platform.
denitions, margins, word limits, citation
We cannot blame Kenyan students since
proper research conceptualisation exercisstyles and what a research project should
look like instead of how to design a research
es do not exist in most classes. Also, many
project with proper content.
faculty in Kenyan universities only publish
We possess a mismatch between Kenyas
questionable-quality research that does not
numerous bright students and our low acastand up to international standards. Even
demic research excellence. So while Kenya
writing a non-research case study, a shortretains high literacy rates and impressive
ened training manual, or an opinion piece
may all receive publication in some Kenyan
university completion statistics, we rank
peer-reviewed academic journals and qualify
frightfully low on quality of research out-

A notice
at a local
university
advertising
term paper
and project
proposal
writing. FILE

under Commission for University Education

criteria. Observers see that the research gap
exists as systemic that necessitates a total
reboot.
Further, most Kenyan universities do
not run anti-plagiarism checks on research
projects, utilising powerful available industry software. External investigators nd rampant copying and cases where others are paid
to write ones research project, even among
doctoral theses.

Plagiarism software
The situation is so serious that some top
Kenyan universities even run plagiarism
software on PhD holders seeking faculty job
placements and nd that many professors
seeking employment plagiarised their doctoral thesis and many of their publications.
Similarly, they have to drill lecturers on the
content of their doctoral theses to see if they
were the actual authors. Often the investigations uncover dishonesty in the industry.
Many students, confused by the lack of
clarity in research methods courses and untrained supervisors, then produce low quality research.
But together we can change the system.
Despite setbacks in many university settings,

Kenya holds some phenomenal centres of

research excellence that rival any other nation. The challenge we face entails raising
the level of research rigour across the entire
sector. Kenya has the brains and the will; now
Kenya needs a way.
So instead of gauging the success of our
universities based on preposterous non-credible websites that produce laughable ratings,
Business Talk embarks on a multi-part series
to empower Business Daily readers from
university lecturers to doctoral researchers,
graduate degree students and undergraduate
learners on how to design research projects
that may propel Kenya forward and set us up
to compete on a global scale. Simple tools,
conceptualisations and literature review techniques may dramatically boost research output and lift our rigour.
Submit your research successes, challenges and ideas for the upcoming series through
#KenyaResearch on Twitter.
Professor Scott serves as the director
of the New Economy Venture Accelerator
(NEVA) at USIUs Chandaria School of Business, www.ScottProfessor.com, and may be
reached on: info@scottprofessor.com or follow on Twitter: @ScottProfessor

In next weeks edition of Business Talk, we explore Enhancing Kenyas Research Culture. Read current and prior Business Talk articles on the Business Daily website and www.usiu.ac.ke/
blog/businessdaily.

28

BUSINESS DAILY | Thursday August 6, 2015

Life: ENTERPRISE
INFLUENCE Brand yourself, rene your skill sets and expand your professional connections consistently

Steps to become a thought leade in you industy

B
ecoming a thought leader, an individual
who drives innovation and new ideas
in a given industry, is an objectively
valuable path for any professional. Thought
leaders are popular, well respected and connected enough to drive real value to their respective businesses.
You cant go to school to become a thought
leader, nor can you complete a one-o programme and earn some kind of certicate or
formal recognition as such. Instead, you must
implement a series of ongoing personal branding strategies, rene your skill sets and expand
your professional connections consistently. Introduce new ideas on a near-constant basis,
and make sure your name gets recognised by
people both in and out of the industry.

Get published, often.

Your blog is only the beginning. By this

time, you should have a steady stream of regular readers who occasionally comment on and
share your blogs. Its time to take things to
the next level. Start publishing guest posts on
other industry-related blogs, and once youre
comfortable, start seeking publication on wider, more authoritative sources.
For example, you could get yourself published in an industry magazine or on one of
the leading publication channels online. Youll
want to get work published on a wide range of
dierent sources, and the more often you do
it, the bigger your audience will grow.

Make bolder claims and drive newer

things.

Establish a personal brand.

Personal brands rest at the heart of many
marketing strategies, and thought leadership
is a natural extension of the ability to build a
reputation. Start out by enhancing or restructuring your existing social media proles, especially LinkedIn and Twitter, with detailed
descriptions of your credentials and career accomplishments. Youll be using these as foundations of your strategy and key channels for
social networking.
Then, establish your own blog or blog on
your companys site and start writing on a
regular basis. Youll want to establish a nice
archive of at least 30 posts before you go any
further, and make sure youre updating your
blog at least once a week. Syndicate your blogs
on your social networks and get involved in
groups and chats as you see t.

Work with mentors and inuencers.

Once youve established a baseline reputation, start reaching out to potential mentors

Developing
a personal
brand and
becoming
a thought
leader takes
effort and
time. FILE

and other inuencers in the industry. They

should be relatively easy to nd if youre
pushing your content socially, and some of
them might nd you naturally without you
lifting a nger.
Once you nd a handful that are willing to
work with you, stand back and observe. Talk
to them about whats on their minds. Watch
how they operate their own businesses. Read
what they push to their blogs. The goal here
is to learn from them, and to learn to think
how they think.

Network like your life depends on it.

Continue working with your inuencers
and mentors but once youve become more
familiar with the territory and the quality of
your blog posts goes up, you can start networking with a heavier hand. Get involved on
as many social media platforms as possible,
and reach out to new people regularly. Attend
in-person networking events and seek out
speaking opportunities at live events.
The more people that are in your network, the more authority youll have, and
the weightier your words will be.

At this point, youve established your reputation as an authority in the industry, and
theres only one more step to take: you have
to become a leader, and to do that, you have to
do new things. Start making bolder claims in
your articles, and making bigger predictions
about the future of your industry.
Drive change and innovation in your own
business, and publicise those eorts. With
your authority already established, people
will immediately begin to see you as a bona
de thought leader.
Dont try to follow all these steps in a day.
Developing a personal brand and becoming a thought leader is a process that takes
years, even if you put your full eort into it.
No matter how much it might seem that way,
nobody becomes a success overnight. Youll
have to work hard, and consistently, if you
want to attain the coveted yet unocial title
of thought leader.
- ENTREPRENEUR

Common mistakes to avoid when making a business plan

riting a business plan is

one of the rst major steps
youll take as an entrepreneur. Its the tangible divide that separates entrepreneurs who just have an
interesting idea and those who have
a real, promising structure in place.
Its a key that opens doors to investors,
partners and employees, and the blueprint that makes the rst few years of
your operations possible.
Accordingly, the strength of your
business plan has a major inuence
on the outcome of your business, especially in the beginning.
When writing your business plan,
avoid these ve all-too-common mistakes:

Ignoring a major section.

There are no rm rules on what
constitutes a business plan, per say,
but the mentors and investors who
will be perusing your work will have

Being vague.

certain expectations about its content.

You need a business summary page, a
model for growth that includes nancials and you need to describe your
target audience and explain why they
need your product.
List your competitors and describe
why you are better than they are. Mention your hiring plan and how you
plan to grow. A business plan missing
any of these critical components could
instantly disqualify you from further
conversation.

Neglecting the research.

People want to see objective numbers that support an idea. You might
have imagined the product perfectly,
but if the data doesnt support your
supposition no investor will support you.
Take the time to do your research.
Look at your target demographics,

The strength of your plan inuences

the outcome of your business. FILE

When you start developing your

business idea, it may come to you in
fuzzy terms. You might think of your
new app as some way to help people
cook breakfast, but that vague language isnt going to cut it for serious
investors and potential partners.
To make a good impression and solidify your business plan, youll need
to be as detailed as possible. Explain
exactly what the app is, exactly what
it does, exactly how long it will take
to develop and exactly how you plan
to market it.

Writing in a closed system.

how well your competitors have performed and projected growth rates
in your industry and similar statistics. Hard facts cant be refuted, so
the more of them you include in your
business plan, the better.

You came up with your idea, you

thought about it thoroughly, you
did some Google searches to nd
data supporting your idea, and you
spent weeks eshing out the entire
business plan in your basement. Its

comprehensive, well-researched, and

well-written, but theres one problem:
you wrote in a closed system.
You didnt get any outside opinions
or feedback before completing your
work, and in all likelihood, you failed
to address signicant problems that
didnt occur to you but would have
to someone else. You prevent this by
conducting market research or surveys about your product and talking
to colleagues, family and friends.

Boring your reader.

While its tough to liven up your
nancial spreadsheets, make your
plan more exciting wherever you
can. Talk about the possibilities for
future expansion. Show your passionate for the idea. Write colloquially and
informally, when appropriate, to reach
your audience directly.
- ENTREPRENEUR

Thursday August 6, 2015 | BUSINESS DAILY

29

Life: MANAGEMENT
TACTICS Todays buyers are wiser and see through the insecerity of a seller

How salesmen dive away buyes

BottomLine

SALES PITCH
An exit or transition plan allows you to refocus your business. FILE

JOHN KAGECHE

Make an exit strategy

part of your business plan

here was a time when sellers

were encouraged to listen
keenly to a buyer with the sole
intention of listening for a problem.
Upon the mention of the problem,
the seller would come out guns blazing with how his product could solve
the issue. He would then keep harping on this with every follow-up. And
he found the buyers interest waning
with every correspondence.
I fell for it too; I listened for a problem. The prospect was busy explaining away her companys position and
instead of listening I foolishly awaited
my turn to speak. And so, like a man
drowning, I latched onto the rst
mention of a problem, clutching at
straws. And so I drowned. The buyer
disconnected.
This approach was myopic, transactional and selsh.
Today, buyers see through this insincerity. They are wiser, busier and
more knowledgeable. Like a consummate doctor, the progressive seller actively listens with the intention to explore and genuinely understand.
The latching-on-to-bait approach
limits the seller and irritates the buyer. The sale is impeded because the
connection is broken. She doesnt
care about me or my problem. Shes
just after a kill, the buyer muses and
switches o. Tragically, he wont tell
you why; and being pompous, you will
be none the wiser.
This approach also gives your competitor an opportunity to close the sale
by exercising genuine concern and a
desire to help.
Buyers are usually more experienced than the seller because they
have been hit-on much more than
the seller has presented. And therefore, experienced buyers will test
your authenticity by baiting you with
a problem. You are wise not to clamp
down on the bait like I did. Prod, probe
and provoke.
It serves two purposes: it shows a
genuine concern, grows your capacity
to listen and many times will unearth
the root cause of the predicament.
Most times buyers express a symptom (the situation) and not the root
cause (the revelation). A headache is
overt but the viral infection causing
it is covert. The situation may see you
sell the pen but the revelation could
see you stock a library.
Whereas this doctor approach is

eteran entrepreneur Celeste Hilling, CEO and founder of 10-year-old lifestyle company Skin Authority,
stumped me when he asked me what the short term
and long term goals for my business were.
When I started Deborah Mitchell Media Associates a
few years ago, I was primarily concerned about getting it
up and running, but Hilling explained that an exit strategy
should be a part of every business plan.
At the start of your venture, have a plan for how you
want to exit or transition from the business. This will help
you be clear in your focus, share a clear vision for your sta
and navigate times when you are confused, Hilling says.
You can use the end game as your compass. Does this decision put you within reach of your end goal? Do you want
to sell the business to a public company, use it to produce
cash for your lifestyle or create a legacy for your childrens
future? This decision will help direct your path in channels,
distribution, brand prole, partnerships, media, etc.
It turns out, without a detailed exit strategy, I have been
working harder, not smarter, with no real plan for the end.
Saying yes to everything is often tempting, especially when
you are trying to grow a business. But saying no and oering
a dened set of services could be a better route to go. Sara
Walker-Santana, co-founder of the digital agency DigitalFlash, says that nding the one or two things your company
excels at and that you enjoy doing, most of the time, is the
way to go. You and your clients will be happier.
Need help refocusing your business? Consider hiring a
business coach and explain that you are interested in also
developing an exit strategy for both the short and long
term. In the meantime.
Here are a few tips for any business person planning
an exit strategy:

Reassess your business.

Have a six-month plan. What is the end goal for your
business? Do you want to sell it or go public? With your
exit strategy in mind, reassess your business every six
months.

Is your goal still relevant?

Sellers who
latch onto the
rst mention
of a problem
are likely to
drive away
buyers. FILE

universal in all selling situations, it is

more pronounced in business to business selling where the decision making
process is much more complex than
in a business to customer scenario. It
takes longer to dredge the root cause
when dealing with many people, a system and a process than when dealing
with one individual.
But why would the seller seek bait?
Because of ill preparation (he hopes
to wing it); indierence (when is this
ending? I need to get to my next hit);
or familiarity (Hes my boy).
Sometimes the sale happens, like
the charlatan who gets paid because
he alleges to cure joblessness. But as

Bob Marley says, You can fool some

people some time but you cant fool all
the people all the time. Such sales lack
staying power they quickly run out of
steam and the seller is always looking
over his shoulder.
Latching onto the rst mention
of a problem places you on the same
pedestal as the swindler. You are better than this. If it has happened once
dont beat yourself too much; learn
from it as I did.
Kageche is lead facilitator, Lend
Me Your Ears, a sales training and
development rm. Email:lendmeyo
urears@consultant.com

As social media and technology make data available in

real time, the business landscape is quickly changing. Are
all of the indicators driving toward your end goal? What
has changed? Is your goal still relevant to the competitive
landscape?

How is your brand appeal?

Test your customers, suppliers and partners for their
perceptions of your brand and standing. Use the data you
collect as input, but factor in your gut perceptions and perspective for the nal decision.
Theres nothing quick about being an overnight sensation. However long you think it will take, double it. Whatever
cost you think, double it, Hilling says. Dont be surprised
that it will take you at least ve years, eight to 10 years on
the average, to get to the end game. Make sure you have
staying power in both cash and positive motivation.
- ENTREPRENEUR

30

BUSINESS DAILY | Thursday August 6, 2015

Life: MARKETING
TIMES CROSSWORD 24,926
1

10

11

12

13

15

14

16

17

18

19

20

21

22

Motivation elements that

make a geat investo pitch
I
nvestors have business motives, so using customer motivations to attract
investors wont work.
One of the most common red ags I hear
from my fellow investors, and even customers, is that they hear yet another solution
looking for a problem. These dont get
funded, nor bought by customers.
Beyond that common starting point,
the why and how of the business are more
important to investors than the what. Here
are the motivation elements that investors
expect to hear in a pitch:

customer segment denitions and volume

projections.

Size and growth potential of the market

opportunity

Startup team strengths and domain experience

Your customers dont care if you are targeting a billion-dollar market and growing
at double-digit rates, but investors will skip
small or shrinking opportunities. Large
and growing markets imply a high startup
growth potential, with high odds of scaling and success.

Customers may be attracted to your

marketing message, but investors look
harder at the startup team, seeking superior expertise in the key areas of growing
a business, product domain, nancial,
marketing and sales. In my experience,
the teams credentials are more important than the product.

How the solution and business model

work to fund the business
Every customer understands that your
solution has to generate more revenue than
cost, but you should not put that data in
a customer pitch. Investors will impatiently expect a winning business model,

Competitor positioning and sustainable competitive advantage

How you intend to beat specic competitors (business model, intellectual

property) is a key investor decision criteria. Your solution may be a technological
marvel, but if it is vulnerable to competitors, potential investors will likely walk
away. First to market is not sustainable
by a startup.

Specic elements of your marketing

and sales plans
Investors expect an overall strategy with
specic budgets, milestones and metrics.
Partnerships, distribution channels and
pricing models should be included.

Projected revenues and expenses over

the strategic period
Typically, investors want to see ve-year
nancial projections to check your commitment and understanding of the businesss
potential. This allows them to calculate
burn rates, break-even points and forecast
the company valuation over time.

Immediate investment requirements

and use of funds
No investor pitch should end without
asking for a specic amount of money, providing some details on how that money
will be used and what equity in the company you are oering in return. Investors
are also interested in future investment
requirements, time frames and long-term
strategy.

Potential investor return calculation

and exit strategy
Startup investments are extremely risky,
primarily because the stock has no value
until a future liquidity event, such as an
acquisition or public oering. The entrepreneur needs to show a strategy for such
an event, and a projected value and return
to the investor.
- ENTREPRENEUR

TIMES 24,925

John Key swaps cutches fo Kennedy clan cane

US Secretary of State John Kerry on Wednesday
swapped the crutches he has been on since breaking his leg in a cycling accident in
May for a silver-handled cane that
served successive members of
the Kennedy clan, including former
president John Kennedy and his father Joseph.
This cane has a history, Kerry
joked at the start of one meeting in
Kuala Lumpur.
This cane belonged to Ambassador
Joseph B. Kennedy in England during the war. And after the war, President Kennedy,
before he became president, used this cane when

his back was bad after the war, he said.

And then Teddy Kennedy, who broke his back,
used the cane, Kerry said, adding
that Teddy Kennedy had loaned him
the stick twice in the past after he
had an operation on his knee.
So when Vicki Kennedy, his widow, heard that I had broken my leg,
she knew I was going to need the
cane, Kerry said. She loaned it
to me. So here it is. Its and the
third time Ive used it.
Kerry, an avid sportsman, broke his right leg
in an accident while cycling a portion of the Tour
de France route near Scionzier, France, on May 31.

P A N O R A M IC
C O C O A
I
I E
E
H
O
A
V
C O L O G N E
E N M A S S E
K
U
T
E
B
T
N
L O C A L
S C R E A M IN G
E
O
A
I
T
N
E
D U N S T A B L E
A G A R
C
E
A
S
A
V
C L E F
G E T A C R O S S
O
N
V
A
A
T
T
R E T R A C T E D
P IE T Y
A
R
C
E
U
U
L
C H A G A L L
C O L O S S I
L
T
N
L
A
C
E
S
E V E N T
E X T R O V E R T

SUDOKU 052

23

24

25

26

27

Across
1 Unhappy, being left to open French and
Spanish wines (10)
6 Mark time after retiring? Terric (4)
8 Nine owls ying about where its high
and cold (8)
9 Brisk pace mostly adopted by staff
nurse (6)
10 Detective work: hunt down missing
husband (4)
11 Present award, say, for business
initiative (10)
12 Hand out a soft drink about middle of
afternoon (9)
14 Duos rendering songs with power (5)
17 Port should be kept in bottle, I think
(5)
19 Stuck in marshy ground, Magwitch
wants large drink (9)
22 Mother and father are in such a state
(10)
23 Shoe tree oddly unsuitable as present
(4)
24 Type of garment one shortened by
mistake (4-2)
25 Containers of compost gardener
initially obtains on line (4,4)
26 Our last kings appeal for courage and
determination (4)
27 Servants to offer help feeding people
(10)

Down
1 Live entertainment thus gets a bit of a
laugh in Scottish island (5,4)
2 Using dictionary, checks graftists
spelling of school? (5,2)
3 Perhaps a Crufts winner fails to nish
piece of meat (8)
4 Instrument out of tune in Elgar
concerto (10,5)
5 Sound quality of broadcast about
preserving old railway (6)
6 Moving display given by actor
performing in style (9)
7 In speech shopkeeper is more vulgar
(7)
13 Photo sent for development
immediately (2,3,4)
15 Writer still cherished among foremost
of Scotlands top novelists (9)
16 Combat ruin, getting in right mess
here? (8)
18 English novelist, man of letters for the
modern age? (7)
20 Leader struggles to contain western
islands (7)
21 In school clear up nasty smell (6)

SUDOKU PUZZLE

053

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

Thursday August 6, 2015 | BUSINESS DAILY

RACING Event seen as sports tourism as lender partners with counties

Battle of engines heads to easten

as KCB ally etuns to Machakos
BY KOOME KAZUNGU

CB Rally will this weekend see drivers crisscross Machakos and Makueni
counties. Kenya National Rally Championship (KNRC) leader Jaspreet Chatthe,
who is fresh from winning the ARC Rwanda
Mountain Gorilla rally, is expected to battle
for top honors with Ian Duncan who is second
in the standings.
Alastair Cavenagh will miss out on the
rally as series leader Chatthe takes on Ugandan Jas Mangat and Finlands ace Tapio Laukannen.
Speaking during the launch, KCB head of
forex sales Louis Karisa says the bank envisages to have motorsport as part of its DNA.
We are nearing the end of the rally season
and our main aim is to take motorsport to the
Kenyans and encourage entrepreneurship,
said Mr Karisa.
The Machakos route will be more thrilling as the drivers tackle hilly plains covering
a total competitive distance of 171 km in the
sixth round of the KNRC Series.
Quentin Mitchell will be rst o the ramp
powering a Skoda Fabia, followed by Ian Duncan in the rally that has been organised by Rale
Motor Sports Club.
I am looking forward towards a good nish. We have had a quite dicult season but
we will change that in the forthcoming races,
said Quentin.
This years rally revisits some of the previous routes though the liaison distance is
shorter. Drivers will expect an all-weather
surface. The Cs 1 will be quite technical and
tricky and drivers have to be at their best to
tackle the 10km at rst stage, before heading to the 21km Cs 2 stage at Mumandu. The
drivers will then tackle the Kapiti plains and
Konza stretch for 35km.
Ian Duncan will be navigated by Tom Taylor
in a Mitsubishi Evolution 10, while Carl Flash
Tundo will be aiming to improve his standings
from position 8 after the Eldoret rally.

YouTube javelin
champion Julius
Yego gets a coach
BY KOOME KAZUNGU

Ian Duncan and Amaar Slatch splash

through the mud in their Mitsubishi Evo
10. FILE

Baldev Chager and Onkai Rai will lead

Team Kabras in the outing while two Ford
Fiestas R 5 will be powered by Manvir Baryan
and Rajbir Rai.
Finland ace Tapio Laukannen will be navigated by Pasi Torma in a Subaru Impreza GVB
13, with Raaji Bharij of Delights Motorsport,
Ugandan Jas Mangat and Imran Mogul also
expected to oer sti competition for the podium nish.
In the battle of the engines 17 Mitsubishi
Evolutions and 13 Subaru Imprezas will be
roaring in the plains of Machakos County.
Eric Bengi will be leading the 2WD category with Leonardo Veresse, Sammy Nyorri,
Raju Sagoo and Alex Lairangi also battling
for top honors.
Baldev Chager leads in Group N with Ian
Duncan and Onkar Rai taking the second and
third position with 83.5 and 65.5 points respectively .Denis Mwenda leads division two
ahead of Asad Khan, Izra Mirza and Tejveer
Singh Rai. Mwenda will be driving a 4WD car

31

for the rst time, navigated by Job Njiru in the

Mitsubishi Evolution 9 car.
Division one also promises to be thrilling
with Mahesh Halai gunning for bragging
rights with two times 2WD champion Jasmeet Chana. Top navigators so far include
Gugu Panesar, Ravi Soni and Gareth Dawe in
the KNRC standings after the Eldoret Rally.
Reconnaissance will take place on Friday
August 7 at the Shell Petrol Station, Machakos branch, followed by scrutineering on the
same day. The rally will be agged o at KCB
Machakos branch on Saturday at 7am. The
drivers will then head to the Cs 1 Machakos
Peoples Park drive through Kimwutwa 1 to
the Cs 2 Machakos Road. From here they will
refuel before heading to Cs 3 Katumani followed by the Cs 4 Kapiti plains.
The rally promises to be challenging for
the modern cars and the ability of conventional Subarus and Mitsubishis to compete
with R5 and S2000 cars that have incredible
acceleration will be put to test.

ouTube javelin sensation Julius Yego

request to Athletics Kenya and Kenya
Defence Forces (KDF) to allow Joseph
Koech Mosonik to coach him during the World
Championships set for Beijing and beyond has
borne fruits. The athlete who has not had a
coach says he needed someone to help him
interpret the YouTube techniques in order to
perfect his skills.
Its good when you get someone you are
working with since it helps you improve on
many aspects. Mosonik has helped me a lot and
I hope to go far with him, admits Yego.
The countrys javelin hero says there are
many aspects of the track eld event that require
close monitoring and physical coaching.
The pair has been has been working closely
for the last three months, an undertaking that
saw Yego perform well in Rome, Ostrava and
the monstrous throw in the Birmingham Diamond League meet.
Yego and his coach will be working on
abdominal speed, runway techniques and
advanced throwing techniques ahead of the
World Championships this year.
The KDF high jump, pole vault and eld
event coach is optimistic that Yego will improve
on his performance this year. Mosonik, 55, has
been advising Yego since 2007.
Yego believes Mosonik will help him to
improve on his speed, accuracy, strength and
momentum and better his 91.39-meter Diamond League and African record in Beijing
later this month.

SPORTS BRIEFING
Mourinho says disagreements
with Chelsea owner are over
Chelsea manager Jose Mourinhos previous disagreements with owner Roman
Abramovich are over and he is ready to
ght for his fourth Premier League title
starting this weekend, the Portuguese
said on Tuesday.
In his rst spell at the club, starting in
2004, Mourinho won the league in both
his rst two seasons, only to fall out with
the Russian owner and leave in September 2007.
He returned two years ago, nishing third
in his rst season and then winning the title again in May.

In my rst period, my personal relationship (with Abramovich) was very good

(but) professionally we had some interferences and a bit of a disagreement with
some ideas, Mourinho told Sky Sports
News. In this moment we dont have this
problem. When I left Real Madrid to come
here, Mr Abramovich asked me to ght
for titles.
In my rst season we were almost there,
in my second season we did it and in my
third season if you are close, you can always do it.
Chelsea are aiming to become the rst
team to retain the title since Manchester
United in 2009 and Mourinho believes it

will be the usual clubs challenging them.

The top ve are the top ve, and why not
a club like Tottenham to get in there? he
said.

Ki hopes to upset Chelsea in

Swanseas league opener
Swansea City midelder Ki Sung-yueng
hopes his side can repeat last seasons
opening-day shock when they face champions Chelsea at Stamford Bridge in the
Premier League this weekend.
Ki scored in the win over Manchester
United on the rst day of last season as
Swansea went on the nish a creditable
eighth in the Premier League.

We had the perfect start last year which

set us up for the rest of the campaign,
the 26-year-old South Korean international was quoted as saying on Swanseas
website.
Ki is aware of the enormity of the task at
hand against Jose Mourinhos side.
Its going to be tough, but hopefully we
can do the same again, Ki said. Our
preparation has been good over the last
six weeks. Weve trained very hard and
everyone is ready to go.
Chelsea are the defending champions,
and worthy champions at that, he added.
We know we will have to be at our very
best to come away with a positive result.

Arsenal midelder Abou Diaby (right) vies

with Swansea Citys Ki Sung-Yueng. AFP

32

BUSINESS DAILY | Thursday August 6, 2015

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Sudan accused of war crimes

Amnesty International has accused Sudans army of committing war crimes
by bombing and shelling civilians in its
South Kordofan region.
More than 374 bombs, including cluster
bombs, were dropped in 67 locations between January and April, killing at least
35 people, the human rights group said.
Sudans army has not yet commented
on the allegations. It has been battling
rebels demanding more rights for the region since 2011.
At least 1.4 million people, or a third of
South Kordofans population, have ed
their homes because of the conict, Amnesty said in a report.
African Union chief mediator Thabo
Mbeki is currently in Sudans capital,

Khartoum, where he is expected to discuss the conict with government ofcials, the AFP news agency reports.

Boko Haram kills 8, seizes 100

At least eight people were killed and
about 100 others were kidnapped by
suspected Boko Haram militants in an
overnight raid on a village near Cameroons northern border, a local government and a military source said.
Tchakarmari, the village targeted early

Flash oods derail India trains

Two passenger trains in the Indian
state of Madhya Pradesh have derailed
minutes apart on a ooded bridge, killing
at least 24 people, ofcials say.
The trains were passing each other
near the town of Harda when a ash
ood triggered by heavy rain struck the
bridge, reports said.
The tracks collapsed and some of the
carriages were submerged.
Ofcials say at least 25 people have

Environment
NEWS

been injured and another 300 rescued.

The Kamayani Express travelling from
Varanasi to Mumbai derailed rst, while
the Janata Express travelling in the
opposite direction derailed shortly after.
One passenger described water pouring
through the carriages just after the
accident. Water lled the coach till
here, the man, pointing to his waist, told
a local TV station.

China detains Christians in row

Seven Christians have been detained
in China accused of embezzlement and
disrupting social order.
Pastor Bao Guohua, his wife and ve
church employees were detained in
Jinhua, in eastern Zhejiang province.
But the churchs lawyer Chen Jiangang

on Tuesday, lies north of Maroua, where

dozens of people were killed in a series
of suicide bombings by the Nigerian Islamist group last month. Residents said
the attackers headed back to Nigeria
where Cameroon is not allowed to pursue them, the local government source
in the Far North region said.
A senior ofcer deployed as part of a
Cameroonian military operation aimed
at curbing the spillover of violence from
Boko Harams stronghold in northeastern Nigeria said the attackers had
crossed over shortly after midnight.

Gadda abuse video probed

A video appearing to show a son of
former Libyan leader Col Muammar
Gadda and other prisoners being

told the BBC he believed they were being

punished for protesting against the
removal of their church cross.
The local government in Zhejiang has
recently been ordering state-sanctioned
churches to stop displaying crosses.
Christians have said the crackdown is
an attempt to rein in the inuence of
Christianity.

Experts to study MH370 part

Experts in France are due to begin
examining part of a wing that washed

abused in jail is being investigated.

The video shows Saadi Gadda (pictured) screaming as he is beaten by
guards on the soles of his feet. Tripolis
public prosecutor said he would work to
identify the guards shown and take legal
action against them. Campaigners have
condemned the footage, which was
made available by online site ClearNews.
No exceptional circumstances justify
torture or
other illtreatment,
said Human Rights
Watchs deputy Middle
East director,
Joe Stork.

up on the island of Reunion to see if it

came from Flight MH370. The fragment,
known as a aperon, is from a Boeing
777, the same make as the missing
Malaysian airliner. France has invited
Malaysian and Australian aviation
experts to help with the investigation.

TOTAL SHARES TRADED

PREVIOUS

2,041.76

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63,886,500

105,586,500

EQUITY TURNOVER IN SH

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1,879,995,344

BONDS TURNOVER

2,154,950,000

3,150,056,250

TOTAL DEALS (BONDS)

48

21

TOTAL DEALS (EQUITY)

1,798

1,346

NSE 20 SHARE INDEX

4,317.23

4,343.16

NSE ALL SHARE INDEX

145.82

146.25

FTSE NSE KENYA 15 INDEX

188.96

189.54

FTSE NSE KENYA 25 INDEX

187.79

188.48

FTSE NSE KENYA BOND INDEX

91.58

91.50

1,142.24

1,134.28

FTSE ASEA PAN AFRICAN INDEX

HE SAID
When your
values are clear
to you, making
decisions
becomes easier.

-Roy E. Disney
Executive for The Walt Disney Company
(1930-2009)

Ex-rst lady visits N. Korea

The widow of former South Korean
President Kim Dae-jung has travelled to
the North, hoping to ease tensions on
the Korean peninsula. In 2000, Dae-jung
held inter-Korean reconciliation talks later winning a Nobel Peace Prize for his
efforts. The two Koreas are technically
still at war. Dae-jung, who died in 2009,
was a supporter of rapprochement with
Pyongyang.

Loss of worlds rarest ape charted

Earth magnetic shield older

Rock stacks reveal jumping quakes

Historical Chinese documents have

helped scientists to track the decline of
the worlds rarest primates. Today, China
has between 26 and 28 Hainan gibbons
left, but government records that date
back to the 17th Century show that gibbons were once widespread across half of
the country. The apes began to disappear
from the documents about 150 years ago.

The Earths magnetic eld, which shields

the atmosphere from harmful radiation,
is at least four billion years old, scientists
say. This is 550 million years older than it
was previously believed to be. Scientists at
Rochester University, New York, analysed
crystals found in western Australia. Data
on the eld was found to be preserved in
ancient crystals embedded in rocks.

US scientists say they have solved

the riddle of why a collection of balancing rocks near the San Andreas
fault has never been toppled by earthquakes. Their decade-long study concludes that quakes can stop or jump
due to interactions between the San
Andreas and the neighbouring San
Jacinto fault.

Download the NMG PLAY app on Google Play

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

Nairobi: 3-day forecast

Thu
Fri
Sat

Mostly Sunny
Mostly Sunny
Mostly Sunny

High

Low

23C

14C

25C

15C

25C

14C