DAILY NATION May 08

PM and Mudavadi camps trade graft claims
Campaign secretariats threaten to reveal scandals in fresh supremacy wars P. 6>
Nairobi | Tuesday, May 8, 2012
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No. 17209
CONTROVERSY | Insurer accused of disbursing millions to unregistered clinics
New twist as Raila sacks NHIF board

PM overrules Nyongo and appoints fresh team to manage fund plunged into chaos over multi-million tender scandal
BY NATION TEAM
newsdesk@ke.nationmedia.com
ON OTHER PAGES
REALITY SHOW
PREZZO LEADS KENYANS IN BIG BROTHER AFRICA HOUSE

Musician Jackson Makini and brothers Alex and Malenzi to y countrys ag in celebrity competition P. 3
POWER CHANGE
WORLD LEADERS REACH OUT TO FRANCES MR NORMAL

Obama invites French president-elect Francois Hollande to White House as Germanys Merkel welcomes new leader with open arms P. 24-25
INDEX
Mr Odinga suspended the board along with the chief executive ocer, Mr Richard Kerich, for three months and in place appointed a caretaker committee. Mr Odinga also appointed a deputy secretary in the Ministry of Medical services, Mr A.A. Adan, to act as the CEO during the period. CONTINUED ON PAGE 4
he drama at the National Hospital Insurance Fund (NHIF) took another twist yesterday when Prime Minister Raila Odinga announced the suspension of the board and ordered a forensic audit into the management of the health insurer.
News P. 2-11, 16, Back Opinion P. 12-14 Special Report P. 18
World P. 19-25 Business P. 26-30 County P. 32-35 Sport P. 55-59
TEAM SENT PACKING
Fresh hope for oil billions as Tullow nds more deposits

BY IMMACULATE KARAMBU
ikarambu@ke.nationmedia.com Kenyas prospects for commercial oil production rose yesterday with the announcement of bigger reserves in Turkana. Tullow Oil Plc, which found oil in Ngamia-1 well in March, said it had struck 80 more metres of oil deposits. This ongoing wildcat is an excellent start to our exploration campaign. The net pay encountered so far in Ngamia-1 is more than double that encountered in any of our East African exploration wells to date. We now look forward to the drilling and evaluation of the deeper potential of this well and the acceleration of our seismic and drilling campaigns in the re-
Dr Francis Kimani: Director of Medical Services
Mr Samwel Karicho: Alt. member to P.S. Director of Personnel Management
Mr David Konchella: Non-Governmental Organisations
Mr Julius Mutua: Alt. Member to P.S. Treasury
Dr Judith Bwonya: Alt. Member to P.S. Ministry of Medical Services
Ms Jacqueline A. Mugo: Federation of Kenya Employers
Dr Andrew J. Suleh: Kenya Medical Association
Mr Elijah Adui Onyango: Kenya National Farmers Union
Mr Wilson Sossion: Vice chairman
Mr Richard Kerich: CEO
Prof Richard O. Muga: Board chairman
CONTINUED ON PAGE 2
2 | National News
EXPLORATION | Company to sink more oil wells to assess viability of project
DAILY NATION Tuesday May 8, 2012
Tullow strikes more black gold amid hopes for huge deposits
CONTINUED FROM PAGE 1
gion, said Mr Angus McCoss, exploration director at Tullow Oil Plc. At a press brieng yesterday, the rms country manager, Mr Martin Mbogo, said it was too early to say whether the deposits were commercially viable. He said this would become clearer with the sinking of more wells. We expect to complete drilling the Ngamia-1 well in four to five weeks. However, it is too early to tell about the commercial viability of the oil as we are yet to sink other wells, said Mr Mbogo. Towards the end of March, Tullow announced it had discovered oil after drilling 1,041 metres with its partner Africa Oil Corp. The deposits were estimated at 20 metres deep and the announcement yesterday after only sinking 1,515 metres pointed to more deposits. The Ngamia-1 well will continue to be drilled to a total depth of approximately 2,700 metres to explore deeper potential, Mr Mbogo said. He added that the company will explore other wells in the same basin after establishing the capacity of Ngamia-1.
GUIDE TO YOUR DAY

Regional highlights
Nairobi: Prime Minister Raila Odinga to preside over the launch of the free sanitary towels programme for school girls at the Kenya Institute of Education -Kenya Wildlife Service is expected to issue a press statement today on poaching in the country. -Chief justice Willy Mutunga to tour the Milimani Law Courts
Change of guard, and style
I am what you see, there is no artice. I dont need a disguise. I am who I am. Simple, direct, free,
New French President Francois Hollande Page 25
Tullow Oil has been prospecting for oil in Ngamia-1 well in Turkana county since January. More wells will be sunk in neighbouring Marsabit county.
But Kenyans will have to wait longer to see their first processed oil. Uganda expects to start rening crude oil from its elds in 2014, eight years after discovery. It found oil deposits in 2006 in the Albertine basin along its border with the Democratic Republic of Congo and reserves of about 2.5 billion barrels have been conrmed. Oil is Kenyas largest import item. It is the main factor that was blamed on last years depreciation of the shilling and the countrys widening import bill that has put pressure on the current account. Commercialisation will be a major relief for the Central Bank of Kenya, which has been under pressure to keep the shilling stable despite a widening trade decit. Energy minister Kiraitu Murungi revealed that his ministry
FILE | NATION
In the news
Mombasa: Religious leaders have condemned an appeal by a human rights body to legalise homosexuality in the country. Both Muslim and Christian preachers termed the move to lobby for the decriminalisation of same sex marriages as unconstitutional and unholy. Page 34 Kisumu: Parents yesterday bore the brunt of increased fares as matatu operators country wide cashed in on the reopening of schools. At
100
Depth of oil, in metres, discovered by Tullow in Turkana county
was revising the Petroleum Exploration Act to ensure that revenue sharing was in line with the Constitution. He said the ministry had sent sta for training in the countries that have made similar discoveries to prepare them for mass production. Read how Kenya can grow richer with oil deposits in DN2
the same time, they had to grapple with increased fees at some schools. Operators of matatus had increased the fares by more than Sh100 while parents noticed a Sh7,000 hike in school fees. Page 32 Nairobi: Two banks are locked in a dispute over Sh26 million that one of them says was withdrawn irregularly. Dyer and Blair Investment Bank yesterday claimed that the amount was withdrawn from its Equity Bank account without the necessary approvals. Page 10
Pupils at Temple Road Primary School in Nyeri during their rst lesson of the second term yesterday.
JOSEPH KANYI | NATION
WEATHER FORECAST
15 23 19 15
0600 1200 1800 2300
Nairobi will have showers in the early morning There will be less cloud cover and thunderstorms Slight decrease in temperatures and drop in humidity Further decline in temperatures and chances of rain
National News 3
ENTERTAINMENT | Show launched on Sunday night in Johannesburg, South Africa
Prezzo leads Kenyans to Big Brother Africa

Show that houses 35 contestants from 14 countries for 91 days, is back for a seventh run
BY PHILIP MWANIKI
newsdesk@ke.nationmedia.com
Africa. They are led by celebrity contestant, self-proclaimed King of Bling Jackson Makini aka Prezzo, and brothers Alex and Malonza. The show that houses contestants and follows them through 91 days, is back for a seventh run, and was launched on Sunday night in JohanLIST
enya has three contestants in Africas biggest reality television show, Big Brother
nesburg, South Africa. It has a total of 35 contestants from 14 countries across the continent, and were selected to take part in the competition dubbed Big Brother StarGame. The Kenyan rapper, famous for landing in an award show in a helicopter and is known for his ashy lifestyle, says he was inspired to audition for the show as he saw it as a challenge given he loves attention. Prezzos role model, he told the Nation, is Barack Obama because he believed in himself and made the impossible possible. The 32-year-old single father of one says he is proud of his musical career because of the heights he has attained. Asked what people will remember him for after the show, he promised to bring action a popular line from his , rst song, Naleta action. Remember that Im an entertainer, so they should expect anything and everything. He describes himself as cool, calm and collected, and says his favourite quality is the ability to entertain people. The celebrities will live in a house separate from the general population where the main contestants will be housed. There are 28 contestants from 14 countries and Kenya has two housemates, brothers Alex Chege 23, and Malonza Chege 22. Alex, whose nickname is Mgash, is currently studying for a degree in computer science; he already has a diploma in business and communication technology under his belt. His favourite foods are listed as nyama choma (roasted meat) and French fries and his favourite book is The Secret. He likes watching Medical Detectives on TV and listening to Adele. His favourite actor is Leonardo
Single father
Kenyas three contestants in Africas biggest reality television show, Big Brother Africa, led by celebrity contestant, self-proclaimed King of Bling Jackson Makini aka Prezzo (above), and, right, brothers Alex and Malonza Chege.
CORRESPONDENT | NATION
Contestants in reality TV show

Angola: Seydou and Esperanca Botswana: Edith and Eve Ghana: Keitta and Mildred Liberia: Luke and Yadel Malawi: Yafe and Nati Namibia: Jesica and Junia Nigeria: Ola and Chris Sierra Leone: Dalphin and Zainab South Africa: Kegan and Lee Tanzania: Hilda and Julio Uganda: Kylie and Jannette Zambia: Talia and Tamara Zimbabwe: Maneta and Teclar
DiCaprio. He quotes his role model as Apples Steve Jobs (who died last year) for his determination to bring a new era in the eld of technology. Alex cites his mother as a huge inuence on his life because she does a lot for the family and no matter how much we have annoyed her, she still loves us. He was inspired to sign up for Big Brother StarGame by his brother and game partner Malonza. Since we didnt get along, I found Big Brother an opportunity to bond with him, he says.
35
Show has a total of 35 contestants from 14 countries across the African continent
Asked about how he feels knowing Africa will be watching him 24/7, he says its amazing, particularly knowing my friends will be watching, he says. As for his brother, Malonza, he is more of a couch potato who enjoys watching African mini-series Jacobs Cross, Changing Times, Big Brother, Modern Family and Alcatraz. He says the best thing about Africa is its wonderful people, beautiful land
and bountiful natural resources. His favourite place in Kenya is Mombasa sun and sand are my thing and outside of Africa, Dubai because of the way they have taken their country to a whole new level with development and diversity of economic resources . Like Alex, his role model is his mother: Ever since I was young she has been there for me, provided for me and taught me to be who I am today a great, loving caring person.
4 | National News
DISPUTE | PM sets up caretaker committee to take over management of national health insurer
Raila overrules Nyongo as he sacks NHIF board and orders graft probe
CONTINUED FROM PAGE 1 sacked by acting Civil Service head Francis Kimemia on Saturday. Mr Kimemia suspended the board to pave the way for investigations into alleged malpractice at the national health insurer. But on Sunday, Prof Nyongo said Mr Kimemia had no powers to micro-manage his ministry. However, Mr Kimemia warned the officials to stay away from the NHIF premises. Yesterday, Mr Odinga told a press conference at his oce that the decision was arrived at after a consultative meeting with stakeholders. The PM said the Central Organisation of Trade Unions (Cotu), Kenya National Union of Teachers (Knut) and the Federation of Kenya Employers (FKE) were involved in the consultations before their representatives were enlisted in the caretaker committee. He said the caretaker committee would run the aairs of the health insurer until investigations were nalised. We recommend that an independent rm undertake a forensic audit of the affairs of the NHIF as we also engage the Eciency and Monitory Unit, which falls under my oce to corroborate the ndings, he said. Yesterday, Government spokesman Alfred Mutua, said the medical scheme for civil servants had not been suspended following the controversy surrounding its implementation. During Labour Day celebrations, Cotu TO COMMENT ON THIS ARTICLE, SCAN THE CODE OR GO TO: www.nation.co.ke/ 08052012
SCARE
Fire razes insurers generator room

Business at the National Hospital Insurance Fund (NHIF) building yesterday came to a standstill for about an hour following a re outbreak in the insurers generator room. According to NHIF general manager Millicent Mwangi, the re, which started at 9.30am, was caused by an electrical fault in the generator room on the ground oor. It was immediately contained and extinguished by NHIF sta, read a statement sent to newsrooms. A witness said she heard a loud bang and they were engulfed in smoke. I was waiting to board an elevator when I heard an explosion and then we were engulfed in smoke, said Ms Audrey Onyango, who was going to a chemist shop in the building.
have the scandal investigated through the Eciency Monitoring Unit was a ploy to cover it up. Dr Khalwale, who chairs the Public Accounts Committee said he would seek a special audit into the controversial payments the NHIF made to private clinics. Separately, Cotu has hit at Prof Nyongo for alleging that the umbrella workers union was playing politics in the scandal. Mr Atwoli termed the allegation as outrageous in a statement to the media. The Consumer Information Network asked President Kibaki and the Prime Minister to jointly deal with the NHIF scandal. But teachers and civil servants yesterday supported the NHIF board and called for an end to mob justice of its members. Knut secretary-general David Okuta and the Union of Kenya Civil Servants boss Tom Ndege called for independent investigations by the Ethics and Anti-Corruption Commission. By Alphonce Shiundu, Anthony Kitimo, Gisesa Nyambega, Benjamin Muindi, Leonard Mutinda and Mike Mwaniki
secretary-general Francis Atwoli issued a two-week notice of a national workers strike should the government fail to withdraw plans to eect new increased monthly NHIF premiums. Mr Kimemia also froze any transactions between NHIF and the rms that beneted from the Sh 4.2 billion medical scheme for civil servants. On Thursday, drama unfolded at NHIF when the CEO was sent packing by Prof Muga but was reinstated minutes later by Prof Nyongo. Prof Muga also suspended four other top managers and appointed Mr George Midiwo, a brother of Gem MP Jakoyo Midiwo, to act as CEO. But Prof Nyongo revoked the orders and instead suspended Prof Muga.
Yesterday, Police Commissioner Mathew Iteere said police would investigate corruption allegations at NHIF. We have been following closely what is happening at the NHIF and we shall carry out investigations since the matter involves public funds, said Mr Iteere at the Coast provincial police headquarters in Mombasa. And addressing a news conference at Parliament Buildings, Medical Services assistant minister Kambi Kazungu and MP Boni Khalwale (Ikolomani) called for the sacking of Prof Nyongo. They said there was sucient evidence on corruption at the NHIF, yet the minister was dilly-dallying in investigations. They argued that the ministers push to
Fireghters at NHIF buildings generator room yesterday. The blaze, which was contained by sta, was blamed on an electrical fault.
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National News 5
BAD WEATHER | Families sheltered in schools leave as pupils return for new term
Five more drown in oods havoc

Eight-month-old baby killed after house he was sleeping in is buried by landslide
BY NATION TEAM
newsdesk@ke.nationmedia.com our people drowned yesterday as torrential rains continued to pound the country. At the same time, an eight-monthold baby died after the family house was buried in a mass of soil during a land slide in Mukurwe-ini District, Nyeri County. Children in the ood-hit areas could not report to school with several of them said to be sick. Some of the schools were not inaccessible. In Nairobi, Makadara district commissioner, Suleiman Chege said 25-year-old David Bodosho died as he tried to rescue 11-year-old Kiarie Omondi from Ngong River. The two were residents of Mukuru slum in Industrial Area. Mr Chege said a motorist in a saloon car died of suspected heart
Row looms as police board vetting ends

BY NATION REPORTER
Fresh controversy looms after a parliamentary committee yesterday wound up the vetting of the 10 people who applied to chair the yet-to-be formed National Police Service Commission. Committee on Administration and National Security chairman Fred Kapondi led MPs Peter Kiilu, Maison Leshoomo and Joseph Kiuna in the interviews. Conclusion of the vetting is set to trigger a fresh wrangle between President Kibaki and Prime Minister Raila Odinga on the person to head the crucial body that will spearhead police reforms. President Kibaki and Mr Odinga have diered over the nominees, with the Head of State nominating Ms Amina Masoud, while the Prime Minister favoured Mr Johnstone Kavuludi. Given the controversy, the committee decided to interview all the nominees. From the documents before the team and seen by the Nation, Mr Kavuludi was ranked position one with 77 per cent, while Ms Masoud was ranked sixth with 61 per cent. Why she was picked ahead of four others, who were all ranked above her, is what the MPs will address when they make their report to the House today.
An eight-month-old baby died after a landslide brought down this house in Gathaka Village in Mukuruwe-ini yesterday.
attack while in a trac jam on Jogoo Road amid a heavy downpour. In Meru, a woman from Kootho village drowned in River Kathita. Rebecca Karimi, 95, had left her house unnoticed. Her son-in-law, 60-year-old John Kithia, said the elderly woman ate supper before she left the house. In Kiambu, a 23-year-old woman was swept away by oods on Sunday night. Her body was found in a drainage. In the Mukuruei-ni incident, the eight-month-old baby died after the family house was buried by a mass of soil in a landslide. Three other members of the family were injured, but a four-year-old boy was unhurt. The family members were pulled out of the collapsed house and taken to Mukurwe-ini District Hospital, where eight month old Antony Kamau died. More than 13 families at Thangathi, Gikondi and Thanu locations were ordered to move to safer grounds to avert further disaster following 10 hours of downpour, In Homa Bay, leaders were challenged to convene a meeting to address disaster brought about by torrential rains. The rains have destroyed roads, bridges, farms, school buildings and expose villagers to water-borne diseases. Hundreds of families displaced by
JOSEPH KANYI | NATION
Died of heart attack
Water-borne diseases
the raging oods in Nyanza were yesterday forced to move out of schools after the institutions reopened for the Second Term. Several schools in Nyando, Kisumu County, have been acting as evacuation sites for victims rendered homeless by oods. Nominated MP Maria Leshoomo yesterday called on the government to repair the Maralal-Nyahururu road. In Narok, wheat farmers fear losses as soils are waterlogged, slowing down the growth of the crop planted last month. Reported by Kennedy Kimanthi, James Kariuki, Brian Yonga, Sammy Kimatu, Otieno Owida, John Njagi and Eric Wainaina
Controversy
forging papers
BY NATION CORRESPONDENT
A debt collector yesterday accused lawyer Ahmednasir Abdullahi of forgery and claimed that he was not qualied to practise as an advocate. Mr Bryan Yongo claims Mr Abdullahi does not have a Certicate of Completion of Pupilage as required under the Advocates Act. He says the certicate the lawyer oered for admission to the Roll of Advocates in 1992 was forged and not signed by Mr Peter Simani, his supervisor, during pupilage. He has led a complaint with the Law Society of Kenyas disciplinary committee and the Judicial Service Commission (JSC) seeking the removal of Mr Abdullahi from the Roll of Advocates. Mr Yongo also wants Mr Abdullahi to stop sitting on the JSC, where he represents the law society. In the complaint copied to Chief Justice Willy Mutunga and Attorney-General Githu Muigai, he accuses the lawyer of dishonorable conduct incompatible with the status of an advocate as stated in Section 60(1) of the Advocates Act. He wants the allegations investigated within seven days, failing which he will go to the High Court for redress.
Ahmednasir accused of
Appeals by sacked judges start May 24

BY NATION REPORTER
The Judges and Magistrate Vetting Board will begin hearing appeals by four judges removed from the Court of Appeal on May 24. The judges have received letters informing them of the hearing dates and the deadline when they should le their submissions. The admission of the requests for review by the Board is the rst step towards a decision of the Board on the appeals. According to the Vetting Act, the board has the discretion to grant or reject their requests unless the complaints by judges are based on the discovery of new and important matters which not known earlier. Sources told the Nation that the former president of the Court of Appeal, Mr Justice Riaga Omollo and former appellate judge Samuel Bosire have been asked by the board to put in their submissions by May 19. The board wrote to their lawyer, Mr Ochieng Oduol, on May 4. Justice Joseph Nyamu, who was also removed alongside the two, is required to file his submissions before the board by May 18. The fourth judge is Justice Emmanuel OKubasu. All the four judges appealed against the decision by the Board declaring them unt to serve in the Judiciary. Justices Omollo and Riaga argue that they were unfairly condemned. The Board was also accused of failing to notify them of some complaints within the time-frame provided for in the Act. Another complaint by Justice Omollo is that he was not given a fair opportunity by the Board to scrutinise or deal with the complaints and submit a written response. Justice Bosire says the board ambushed him with the two complaints towards the end of the interview. In the application for review, Justice Nyamu argues that the board is erroneous and did not prove that he cannot continue to serve as a judge. He has further faulted a decision by the board to use a land dispute as a basis for their ndings. The board, he argues had no mandate to inquire into the matter because the dispute arose when he was an advocate and not a judge.
Grounds for review
Threat to sue
6 | National News
POLITICS | Former allies accuse each other of corruption
BRIEFLY
NAIROBI
Mudavadi and Raila ght dirty over poll

Threats to bare it all follows weekend clashes at Sabatia funeral
BY JULIUS SIGEI
jsigei@ke.nationmedia.com
New city clerk ghts back with petition

New Nairobi Town Clerk Roba Duba is ghting for his position after a ruling restrained him from oce. Mr Duba led a petition saying the orders were obtained fraudulently as the applicant concealed crucial facts. Through lawyer George Kithi, Mr Duba said he had started work and the council, its workers and the public would be prejudiced as he is now a signatory to council accounts. His petition will be heard today.
he political rivalry between Prime Minister Raila Odinga and his deputy Musalia Mudavadi yesterday escalated into an ugly spat with both camps threatening to spill the dark secrets of their opponents. Mr Odingas presidential campaign secretariat invited Mr Mudavadi to explain his role in a series of scandals, including Anglo Leasing and Goldenberg, in which billions of shillings were lost. The deputy PM oce responded swiftly, claiming that the PM had his fair share of skeletons in the cupboard and cited the Kazi kwa Vijana scandal, the maize saga and the National Social Security Fund (NSSF) drama.
statement to media houses in which he sought to discredit Mr Mudavadis democratic credentials right from the time he became an MP in 1989. We shall invite him to explain a lot of things, among them his role as the conuence of Anglo Leasing and Goldenberg aairs and the mystery of Sh16 billion, said Mr Muluka. But in a 10-point rejoinder, Mr Mudavadis spokesman, Mr Kibisu Kabatesi, dismissed the allegations as irritability about a great loss they feel. In the lead-up to elections, they may choose to tell stories about this corruption and it will not just be propaganda about some target individuals. The dierence will be in their captivating currency. We have snippets of them in the maize, Kazi kwa Vijana, NSSF and NHIF scams, he said. Mr Kabatesi said Mr Mudavadi was not afraid of his past and no intimidation about nefarious revelations will cower him. If these threats did not keep him in ODM, they will not stop him winning the elections. The exchange was triggered by Mr Mudavadis Sunday claims that Mr Odinga should quit politics with President Kibaki.
Past scandals
NAIROBI
University challenges legality of court ruling

A university has challenged the legality of Industrial Court judges after it was ordered to pay a former worker Sh4 million for wrongful dismissal. The USIU says Industrial Court judges are in oce illegally as they did not take an oath of oce after the Constitution took eect on August 27, 2010. USIU led the suit after the court ruled in favour of former don Eric Outa last November.
The threats to bring out the soft belly of Mr Odinga and Mr Mudavadi comes hot on the heels of a weekend during which their supporters clashed at a funeral in the latters Sabatia constituency. Yesterday, Mr Odingas campaigns director of communication, Mr Barrack Muluka, dispatched a 12-point
Weekend chaos
Prime Minister Raila Odinga and Higher Education minister Margaret Kamar at the exhibition on innovation yesterday.
STEPHEN MUNDIARI | NATION
NAIROBI
Stop export of raw resources, says PM

BY NATION REPORTER
Prime Minister Raila Odinga yesterday called on African countries to stop exporting raw materials abroad but instead process them locally. Despite the region being endowed with natural resources, the PM said its level of development cannot be compared to those of countries in the West. To become a middle income country, we need to process those resources into manufactured goods that earn more money value, he said. Mr Odinga was speaking at the Kenyatta International Conference Centre when he opened the rst science, technology and innovation week. More than 51 innovations are being exhibited at the event. Mr Odinga challenged young people to come up with new innovations citing the mobile money transfer, a Kenyan idea, as a case where innovation has been used to break new commercial grounds. Even natural calamities like floods could be stemmed by innovations and be turned into businesses. The extensive and prolonged power outages is however, disrupting daily lives and aggravating security, said the PM, whose speech was ironically interrupted twice by a blackout at the KICC. Institutions should also take up innovations from young Kenyans and commercially exploit them. He disclosed that the government is in the nal stages of preparing a policy that will integrate all available science, technology and innovation capacities into one national development agenda. We are also developing a robust legislative and institutional framework to promote nuclear science and technology, he said. There was need to upgrade the National Council for Science and Technology into a commission to improve the coordination between various actors. Higher Education minister Prof Margaret Kamar urged the government to invest more resources in the science, technology and innovation sector.
Iteere demands Sonko statement on kill claim
Innovation fair
Police Commissioner Mathew Iteere (above) yesterday ordered Makadara MP Mike Mbuvi to record a statement for alleging he was plotting to kill him. I have instructed police in Coast Province to ensure the MP records a statement, he said. He was speaking a day after Mr Mbuvi alleged at a rally in Likoni on Sunday that Mr Iteere was planning to eliminate him, former Mungiki leader Maina Njenga and KTN reporter Mohamed Ali. Mr Mbuvi said he was being targeted for accusing police of using excessive force against the public.
SIAYA
Man killed in erce shootout with police

A man was yesterday gunned down and a taxi operator injured during a erce shoot out involving ve suspected thugs and the police. Siaya OCPD Stephen Cheteka said the ve robbed a shop and escaped in a car with fake number plates but police caught up with them after the vehicles tyres burst at Rabuor shopping centre, Gem district. They had earlier broken into a wholesale shop at Sidindi market in Ugunja district and escaped with over Sh500,000. The taxi operator was hit in the leg by a stray bullet during the shoot out.
We need to process those materials into manufactured goods that earn more money,
PM Raila Odinga
8 | National News
WA R O N G R A F T
TAKING STOCK | Gatanga shines on use of funds
Sh380m CDF cash misused, says report

The gure includes money that was channelled through Local Authority Transfer Fund
BY JEREMIAH KIPLANGAT
jkiplangat@ke.nationmedia.com ore than Sh380 million channelled through the Constituency Development Fund and the Local Authority Transfer Fund during the 2009/2010 nancial year was misused. The National Taxpayers Association made this revelation in its latest report on 38 constituencies in which Planning assistant minister Peter Kenneths Gatanga topped on ecient use of CDF money. The report, launched in Nairobi yesterday, said 16 per cent of the total Sh2.3 billion CDF cash was badly used, wasted or unaccounted for. Gatanga constituency, which was allocated Sh107 million, had no case of badly used funds. It hand no funds set aside for non-existing
2.3bn 107m 98m
Total amount, in shillings, allocated to kitty
Amount, in shillings, allocated to Gatanga constituency
Amount, in shillings, used by Gatanga for projects

projects, neither did it have unaccounted for money in its account as was the case in other constituencies. The report says that the constituency, which had been praised in the past for notable development projects, had used Sh98 million for both complete and ongoing work. There was, however, silence on the balance. Wundayi constituency
ranked number two after it also recorded a blank card on misused funds. Out of the allocated Sh59.4 million, the constituency used adequately Sh52.4 million for purposeful projects. We allowed constituents to choose for themselves the CDF committee. All interests have been represented, that is why we have such a good performance, said Wundanyi MP Thomas Mwadeghu when he received the report. Taveta, Kajiado Central and Kajiado South constituencies were third, fourth and fth respectively. Kitui Central, Naivasha, Kibwezi, Malava and Marakwet East constituencies were the ve worst performing in descending order. Marakwet East, for instance, was the worst performing with approximately 50 per cent of the given CDF cash misappropriated. The constituency, represented in Parliament by Cooperative assistant minister Linah Kilimo, had glaring nancial wastages as it only used appropriately Sh15 million of the allocated Sh31 million.
National Taxpayers Association chairman Peter Kubebea speaks during the launch of a report on the use of public funds yesterday in Nairobi.
JAYNE NGARI | NATION
Council on the spot over funds

BY NATION REPORTER
More than Sh10 million meant for development projects in Bungoma County cannot be traced, according to a new audit report. The National Taxpayers Association also found that another Sh11 million channelled to the county council under the Local Authority Transfer Fund (LATF) was wasted on badly implemented projects. The audit report for the 2009/10 period further shows that more that Sh1.8 million was spent on projects which were later abandoned. The association, which monitors the use of public funds by both the central government and local authorities, now wants the county clerk and all councillors to account for the lost funds. They should trace and fully account for all the missing funds, said the report. They also want all stalled projects completed. The clerk and councillors should make available all records of LATF projects, plus bills of quantities, the report says. Out of a total of 103 projects that were to be implemented, only 27 can be classified as well built , completed projects. The report shows that Sh10.6 million was allocated to non-existent projects, including Sh900,000 for the construction of two classrooms at Kiminini Youth Polytechnic, Sh600,000 for a water well in Sirisia and Sh450,000 for a dispensary in Webuye, among others. It also says that Sh3.6 million was wasted on stalled projects in the Town Council of Mbita Point while Sh1.1 million was spent on projects that were badly implemented in Muranga County Council.
National News 9
CONTROVERSY | Proprietors of Kenyas second largest chainstore ght over its loaded tills
Another director joins Tuskys suit

Mugweru accuses his brothers of not serving him with application to stop police from probing supermarkets accounts
BY PAUL OGEMBA
pogemba@ke.nationmedia.com director of Tuskys Supermarket and his niece have been allowed to join a suit seeking to block police from investigating the companys bank accounts. The court cannot object to Mr Yusuf Mugweru and Ms Ann Wamaitha Gatei being enjoined in the petition. That will be unfair to them because they only want to present their views as interested parties, said Justice Mohammed Warsame. Mr Mugweru and Ms Gatei had requested to be allowed to join the proceedings, claiming that the other directors had made serious allegations against them. Through lawyer Philip Murgor, Mr Mugweru who has 17.1 percent shares in the chainstore, told the court that he obtained copies of the petition after the other directors refused to serve him. Ms Gatei, the daughter of Mr Sammy Gatei who is also a director in the company, echoed similar complaints. However, the application was opposed by lawyer Chiuri Ngugi, acting for the three other directors. He said the pair had misunderstood the judicial review application he led last week. Last week, three directors of the supermarket led an urgent application seeking orders to stop the police from executing warrants to inspect the rms accounts and records.
Shareholders appeal against judgment in Portland case

BY NATION REPORTER
A cement makers shareholders have appealed against a ruling that the rm is a State corporation. Cemetia Holdings Limited, Associated Cement International and Bamburi Cement are seeking to overturn a ruling by Mr Justice Mohammed Warsame that settled a dispute that threatened to ground operations at the East African Portland Cement Company (EAPCC). The three shareholders, operating under the banner of Lafarge, said they are dissatised by part of the ruling that stated that the government is the majority shareholder in EAPCC and that the company operated under the State Corporations Act. While ruling in a petition led by the EAPCC board against their suspension, the judge ruled that a company cannot run away from a particular shareholder whose strength is on shares and powers of the State. He ruled that since the government through the Finance PS had 25.3 per cent of shares and the National Social Security Fund had 27 per cent, the company qualied to be a State corporation. The three shareholders have a combined shareholding of 41.7 per cent. Mr Justice Warsame had dismissed claims by the three shareholders that NSSF had reduced its shares in the company.
STICKING POINTS
Family ghts over supermarket

nYusuf Mugweru Kamau claims his three brothers and co-directors had stolen Sh1.6 billion. nHe reported the matter to CID who ordered a search of the chains head oce nHis brothers, Stephen Mukuha Kamau, George Gachwe Kamau and Frank Kamau claim he is engaged in unlawful activities. nThey accuse him of making a complaint against Stephen leading to his arrest and subsequent charging with assault on February 27.
From Left: Mr Yusuf Mugweru Kamau, a director of Tuskys Supermarket, lawyer Philp Murgor, Joseph Kago, Anne Wamaitha Gateri and Ann Kago outside a Nairobi court yesterday after the hearing of a petition by three other directors seeking to stop the police from investigating the chain. The case will be heard on Thursday.
The police obtained the warrants after Mr Kamau and Ms Gatei claimed that Tuskys managing director Stephen Mukuha, purchasing director George Gachwe and Financial director Frank Kamau had stolen Sh1.6 billion. The search orders were issued on April 12. The directors, who are also brothers, want the court to quash the warrant giving police access to the supermarkets head oce on Mombasa Road, Nairobi. They claimed that their brother, Mr Mugweru, is a non-executive director and had engaged in unlawful activities which had interfered with the management of the business from February. They alleged that Mr Mugweru and Ms Gatei are abusing the criminal legal process and were using adverse media publicity to solve
PAUL WAWERU |NATION
company problems. They claimed the dispute started in February when Mr Mugweru wrote to the nancial director demanding the register and bank accounts of all companies owned by Tusker Matresses. They submitted that Mr Mugweru then instructed Frank to stop all payments to several entities, including Cute Interiors Ltd, Tusker MatressesUganda, Pop Media Ltd, Kenspore Company and Enkarasha Ltd. On February 17, he suspended Frank from oce and conscated his ocial motor vehicle. On the same day he allegedly wrote to several banks where Tusker Mattresses holds accounts asking them not to honour payments to some companies. Justice Warsame directed all the parties to le and serve their adavits by Wednesday evening.
41.7 pc
Percentage of shares owned by three shareholders at EAPCC
10 | National News
COURT BATTLE | Stockbroker wants listed company to return the cash
BRIEFLY
NAIROBI
Banks locked in Sh26m fraud dispute

Equity Bank employee transferred money and was arrested on his way to the airport and later convicted
BY PAUL JUMA
pjuma@ke.nationedia.com
CHRONOLOGY
How the row started

May 12, 2008: Equity Bank receives two letters authorising transfer of Dyer and Blairs Sh26 million. May 13, 2008: Equity Bank releases money to two accounts. May 19, 2008: Stockbroker says letters were forged and noties Equity Bank.
Man pleads with court to free daughter on bail

A man yesterday pleaded with a court to release on bail his daughter accused of killing her brother. Mr Mwangi Gitau said he was ready to welcome Ms Teresia Naserian back. Ms Naserian is charged with manslaughter after allegedly stabbing her brother, Wanjohi Gitau, to death in Ngong after a quarrel. The magistrate ordered the probation ocer to present a report on May 10.
NAIROBI
wo banks are locked in a dispute over Sh26 million that one of them says was withdrawn irregularly. Dyer and Blair Investment Bank yesterday claimed that the amount was withdrawn from its Equity Bank account without the necessary approvals. Dyer and Blair chairman Jimnah Mbaru told a Nairobi court that he never authorised two transactions through which the money was transferred and asked the court to compel Equity Bank to refund the cash.
Equity Banks defence is that the money was transferred from the stockbrokers account on the basis of two letters that Mr Mbaru allegedly wrote issuing instructions for the transfer. Mr Mbaru and his bank however, said the letters
Equitys defence
were forged. A lawyer for Equity Bank said that a document examiner had checked the two letters against specimen signatures of authorised signatories which Dyer and Blair had deposited with Equity Bank and found them similar. The lawyer, who was crossexamining Mr Mbaru, asked him to conrm that Dyer and Blair sacked 11 of its employees last year for fraud. It was likely that the loss of the stock brokers money resulted from similar employee fraud, said the lawyer. Mr Abdiwahad Ahmed Noor, an Equity Bank employee, transferred the money from Dyer and Blairs current account in 2008. The money was wired to a Barclays Bank account in the name of the employee and a Bank of Baroda account registered in the name of a Tanzania-based company, the court heard. The employee transferred Sh9.8 million to the Bar-
Millions lost as major power line collapses

Kenya Power incurred losses amounting to millions of shillings after a main supply line collapsed due to heavy rains. Chief distribution manager Benson Mureithi said at least ve towers went down near Juja Farm on Saturday, cutting o power to Thika town and its environs for two days. The line, which runs from Dandora in Nairobi, supplies Juja, Gatundu, Kandara, Makuyu, Ol Donyo Sabuk, Kitui and Muranga.
The payments were made to clients we did not know

Paul Gathuku, an accountant
clays Bank account, while he also bought US$265,000 through Dyer and Blairs account and transferred the funds to the Bank of Baroda account. Mr Noor was later arrested on his way to the airport. He was jailed for stealing Sh26 million from Dyer and Blairs account at Equity Bank. According to the stock brokers accountant, Mr Paul Gathuku, Equity Bank should bear the loss and return the
Dyer and Blair Investment Bank chairman Jimnah Mbaru in court yesterday during the hearing of the case.
funds to Dyer and Blairs account. Mr Mbaru and Mr Gathuku supported the claim while giving evidence before Commercial Division Judge Erick Ogolla at the Milimani Law Courts in Nairobi. They also told the court that they were witnesses in Mr Noors criminal trial. Mr Gathuku said that he detected that the transfers were not done according to the laid down procedures in May 2008. The payments were made to clients we did not know, he added. When he sought an explanation from Equity Bank, he was shown the two let-
PAUL WAWERU | NATION
ters allegedly signed by Mr Mbaru. Equity Bank usually contacts any of Dyer and Blairs authorised signatories, who include Mr Mbaru, to confirm any transaction involving a large sum, but it did not do so for the Sh26 million, they added. However, Equity Banks lawyer asked the witnesses whether they were aware that Mr Kabake Wamwea, one of the signatories, was contacted and he conrmed the transactions. He was not called and did not conrm the transactions, replied Mr Mbaru. The hearing resumes on June 27.
LAMU
Sheikh advises State to tackle MRC grievances

A Muslim preacher has challenged the government to tackle issues raised by Coast residents to silence calls for secession. Sheikh Abdulkadir Mahmoud said the seeds of the outlawed Mombasa Republican Council (MRC) were sown by successive governments. MRC was born because of injustices and marginalisation. The only way to nip this group in the bud is to address the two issues, Sheikh Mahmoud said in Lamu.
NAIROBI INTERNATIONAL TRADE FAIR

P.O. BOX 21340, 00505 Nairobi Tel: 020 2641068, 0202641067, Cell: 0724-643701, Fax 38738383 Email: info@nitf.ask.co.ke Website:www.nitf.ask.co.ke
IDPs refuse to leave land threatened by volcano

Internally displaced persons have deed a government directive to vacate land in Maai Mahiu, Naivasha, due to fears of a volcanic eruption. The more than 500 IDPs from Huruma, Muiciringiri and Jikaze, who live on the edge of a six-metre deep gulley at the foot of Mount Longonot said yesterday they feared the directive may be a plot to eject them from the land. Geologists insist that the trench resulted from rising magma and have warned of volcanic eruption. Last week, Special Programmes permanent secretary Andrew Mondoh ordered the IDPs to move from the area. District disaster management officials were asked to help move the families. Yesterday, Naivasha district commissioner Hellen Kiilu said the IDPs were supposed to have moved to a safer area on the upper side of the camp on Friday but they refused. We tried to explain to them that they were living on a precarious piece of land but they refused, Mrs Kiilu told journalists at her oce. The DC said the group was supposed to leave the area voluntarily.
LICENCE T0 OPERATE STANDS, CATERING UNITS AND RESTAURANTS DURING 2012 NAIROBI INTERNATIONAL TRADE FAIR (NAIROBI SHOW) AT JAMHURI PARK NAIROBI
1. CATERING UNITS
All Persons interested in operating catering units (Show Kiosks) and unoccupied restaurants are notified that application forms are now ready for collection from Nairobi International Trade Fair offices upon payment of a non-refundable fees of Kshs. 2,500/ (Two Thousand five hundred Only). The Closing date for submission of the application forms will be 13th July, 2012. All applicants will be notified on the balloting date.
2. TRADE EXHIBITORS PARTICIPATION IN 2012 NAIROBI INTERNATIONAL TRADE FAIR (Nairobi Show)
The Organizing Committee of the Nairobi International Trade Fair (Nairobi Show) wishes to confirm to all exhibitors, showgoers, participants and members of the public that the 2012 Nairobi International Trade Fair (Nairobi Show) will be held from Monday 1st October to Sunday 7th October, 2012 at Jamhuri Park, Nairobi. All exhibitors are therefore requested to confirm their participation in this years trade fair on or before 30th July, 2012. Exhibitors are advised that for those who will not have confirmed their participation by this date, the committee will consider allocating their stands to other prospective exhibitors. For more information, contact The General Manager, Nairobi International Trade Fair on Email: gm@nitf.ask.co.ke 020 2641068, 0202641067
500
The number of families who have deed order to vacate land threatened by volcanic eruption
The government has taken away 200 tents the administrator had given out to the IDPs, expecting they would comply with the directive to leave the land. We feel that they want us to leave the place and then they will dump us, said Mr John Maina, one of the IDPs.
National News 11
TRAFFIC JUNGLE | Police step up eorts to stop carnage

Malindi Trac base commander Inspector Bernard Ibaya shows more than 40 motorcycles that have been seized over trac oences in the last two days. Since the Daily Nation published a photo of a boda boda operator carrying ve passengers, police have intensied swoops on trac oenders and each day at least 20 oenders are charged.
ROBERT NYAGAH | NATION
BRIEFLY
NAIROBI
Two killed after attack on UN security ocers

Three UN security ocers have been admitted to Nairobi Hospital after they were shot on Sunday. The ocers were returning from a burial in Nyeri. Their car got a puncture about six kilometres from Thika and they stopped. Seven armed men emerged from the nearby bush and attacked them. Police caught up with the attackers and gunned down two.
TESO
Fear grips village after leopard kills sheep

EDUCATION | Ministry said funds would be disbursed later in the term
A leopard has killed nine sheep and two dogs, sparking fear among residents of Chakol village in Teso South District. The villagers have called on the Kenya Wildlife Service to act swiftly and capture the big cat after their initial eorts yielded no results. They said the animal posed danger to their lives. The leopard was spotted near Chakol Catholic church.
Pay us rst, booksellers tell schools

Lobby demands Sh4bn arrears and withholds supply until ministry releases free learning cash
BY SIMON SIELE
ssiele@ke.nationmedia.com ooksellers have withheld supply of learning materials to public schools in protest at the delayed release of free education funds. They are also demanding Sh4 billion arrears for materials supplied to schools previously. The Kenya Booksellers and Stationers Association (KBSA) said the decision was motivated by the Education ministrys announcement
that the release of the cash would be delayed. Education secretary George Godia at the weekend said the Free Primary Education and Free Day Secondary Education money would be released later in the term due to a cash hitch at the Treasury. KBSA chairman John Mbugua (right) called on the 1,300 members across the country to suspend further supply of books and stationery on credit until there was a clear directive on the disbursement of funds to schools. Our audited members accounts indicate that secondary schools and primary schools owe us Sh3 billion and Sh1 billion, respectively. We wont advance credit until the outstanding debt is cleared, said Mr Mbugua. KBSA also put on notice school cases would be dealt with on a cash
basis and that those in arrears would have their procurement slashed to recover outstanding debts. The lobby accused the government of sacricing the education of the children by exposing them to suering through perennial delays and reduced education funding. Last year, booksellers withdrew their credit facilities in a move that forced former Education permanent secretary James ole Kiyiapi to release Sh5.3 billion to schools.
NANDI
Language barrier puts on hold terror accused case

Police are still holding nine suspected Al-Shabaab terrorists arrested in Nandi County at the weekend due to lack of an interpreter. The nine were taken to a court in Kapsabet yesterday morning but by 1pm, the case had not started because the suspects could not communicate in English and Kiswahili. Nandi Central police boss Nelson Okioga said the ve men and four women and a four-month-old baby were detained at Kapsabet police station.
Number of members of the Kenya Booksellers and Stationers Association
1,300
Mr Mbugua noted that the current disbursement was no longer adequate due to the high cost of living and the recent price increase of exercise books and textbooks. The price of exercise books has risen by 30 per cent, while that of textbooks has shot up by 15 per cent.
High cost of living
Stock Clearance !!! Last Chance !!!

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MUNICIPAL COUNCIL OF MERU
PUBLIC NOTICE
The Council wishes to inform the public that the land parcels Nos. Nyaki/Mulathankari/275,767,828,829,830 are public lands reserved for Council slaughter house and are not therefore available for subdivision and or allocation by any individual/office or organization. Take Notice therefore that any individual or officer facilitating subdivision and or allocation of the above parcels of land is doing so illegally and will be prosecuted. The members of the public are hereby further advised not to be cheated into buying any part of the said parcel. The Council holds this land in trust for the public and regards public interest as superseding individual interest. J.M. Mutuiri Town Clerk.
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12 | Opinion
Release these funds to schools promptly

he governments failure to release funds for the free education programme before schools reopened yesterday is absurd. Its proof that we are getting our priorities wrong on crucial programmes. Ideally, with more than Sh15 billion set aside for the free primary and free day secondary school programmes this nancial year, there should be no excuse for the Ministry of Education and the Treasury to fail to disburse the money promptly. Only late last year, the ministry promised to disburse the funds annually on a 50:30:20 basis based on the school terms. This meant that half of the funds allocated for the programmes should have been released in January, 30 per cent in May, and the rest in August. This plan was made only in August last year and has not been implemented, perhaps signifying that the more things appeared to change, the more they remained the same at the ministry. How would anyone expect headteachers to keep the more than 10 million pupils in school without money to buy reading and writing materials? Already, schools have accumulated huge debts as a result of delayed disbursements over the years. It is perhaps time the government came out clearly on its commitment to funding the programme. For we are witnessing far too much money being spent on less important programmes than safeguarding the future of our children. For instance, MPs are busy pushing for better retirement packages without caring if our children are allowed to study. Even worse, we are seeing venal State ocers looting public coers as we starve our childrens future. We must not allow the noble free learning programme to collapse even after the term of its initiator, President Kibaki, nears its end.
STRIKING SIMILARITIES | Macharia Gaitho
Scientists need incentives

rime Minister Raila Odinga could not have put it better when he said that until we in Africa learn the advantage of innovation and value addition, talk about industrialisation will never translate into reality. Urging African countries to stop exporting their raw materials, the Prime Minister, while launching the science, technology and innovation week in Nairobi, said for this to happen, thorough training in science and technology must be encouraged. This is the plain truth. Take Kenya for instance. We grow perhaps the best coee and tea in the world. But 50 years into independence, we are still selling the two products in their raw state at relatively throwaway prices, and then importing the rened products. Surely we can do better than this! But it is Higher Education minister Margaret Kamar who underscored the root of the problem. We should address the brain drain issue that has made the continent lack the competitive edge in the world, she said, arguing that the loss of our scientists is the reason we are in this sad pass. It is time our leaders went beyond words. We should not keep talking about the need for greater innovation without giving our scientists any incentives.
A PUBLICATION OF NATION MEDIA GROUP
LINUS GITAHI: Chief Executive Ocer JOSEPH ODINDO: Editorial Director MUTUMA MATHIU: Managing Editor Published at Nation Centre, Kimathi Street and printed at Mombasa Road, Nairobi by Nation Media Group Limited POB 49010, Nairobi 00100 Tel: 3288000, 0719038000. Fax 221396 editor@nation.co.ke Registered at the GPO as a newspaper
hroughout the struggle for the second liberation and into the early years of the multiparty system, former Vice-President Mwai Kibaki was contemptuously derided as General Kiguoya (coward); the one who, in a famous put-down by newspaper columnist Kwendo Opanga, never saw a fence he did not want to sit on. Well, the coward and fence-sitter went on to become His Excellency President Mwai Kibaki, EGH, MP, Commander-inChief of the Defence Forces of the Republic of Kenya. If anyone doubts it, he took on the imperial presidency with all the pomp and the trappings of power, including a rather obscene motorcade. One drawback is that his presidential escort commanders are nowhere near as ecient as those of this predecessor. President Mois escort would close roads only briey before his motorcade zoomed past at high speed and normal service resumed. These days, one gets the feeling that roads are closed while the President is still in deep repose at State House, creating for hours unnecessary logjams to Nairobis already perpetually
In the proxy ght for the presidency, history seems to be repeating itself T
gridlocked trac. But then he is the President, and can do what he wants. Unlike presidents who have kept time to the second (well, so did Adolf Hitler), President Kibaki is a certied laggard. Just last week, he gave the Kenyan media fraternity a valuable honour by gracing the inaugural East African Journalists Convention. He came in more than just fashionably late. It was not until after 1.00pm that he made an appearance slotted on the programme for 11:30am. Well, he is the President and can get away without even the most cursory of apologies. Anyway, I have digressed a great deal. The heroes of the second liberation who took the battle to the one-party autocracy of President Moi have had to play second ddle to a man who jumped into the frontline only after the battle had been won. Kibaki was no hero and was never in the trenches, but he became President precisely because he was a safe and moderate pair of hands who would not turn things upside down. Mr Raila Odinga, who led the Kanu brigade storming in protest at President Mois handpicked Project Uhuru, said Kibaki Tosha simply because he saw the latter as an accommodating gure who would not seek to entrench personal rule. President Moi may have run neophyte Uhuru Kenyatta as his chosen successor, but that was only a decoy. His more urgent aim was to stop Mr Odinga, and in that regard, Kibaki was the only other option. A study of President Kibaki brings out some very striking similarities to the new entrant in the race for State House, Musalia Mudavadi. The more Mr Mudavadi projects himself as the candidate best placed to halt Mr Odingas march to the Holy Grail, the more he hopes that the anti-Raila bandwagon will troop to his side. It cannot be a coincidence that once he nessed the excuses to move out of ODM, he found waiting to welcome him a ready-made party initially founded
Kibaki was never in the trenches, but he became President precisely because he was a moderate pair of hands
and funded as Mr Uhuru Kenyattas Plan B. Once he moved to UDF in a grand ceremony that marked the launch of his presidential campaign, Mr Mudavadi made no mention of the internal democracy upon which the party candidate will be elected. Well, no matter. The party has decided that he is the candidate, and everything else will be a formality. Like President Kibaki, Mr Mudavadi is a nice and unthreatening guy who might just manage to build national support around his genial persona. Among the list of presidential candidates positioning themselves to inherit the support of Mr Kenyatta and Hague-bound colleague William Ruto, Mr Mudavadi might just jump ahead of the pack. The problem is that the plan for a candidate backed by the Hague duo was drawn up before Mr Kenyatta and Mr Ruto decided that they will be in the presidential race despite the ICC cases, and not put their fates in the hand of proxies. If Mr Mudavadi comes to look like a real contender, the owners of UDF might just take back their party. mgaitho@ke.nationmedia. com.
Opinion 13 THE CUTTING EDGE

BY THE WATCHMAN
CHARGE VANDALS. Whenever the rains begin, Michael Pike reports, many sewer manholes start oozing with the murky water. This, he adds, conrms that new buildings and probably some old ones have connected their storm water drains to sewer lines. Is this legal? If not, he suggests, the City Council should go around and ensure the situation is rectied and the culprits prosecuted. It should also ensure that the drains and culverts are cleaned before the next rains. His contact is michael.pike8@gmail.com.
WATER FIRM GUILTY. It is the Nairobi Water and Sewerage Companys personnel who dug the trench across Enterprise Road in the Industrial Area to lay pipes and failed to ll it up, says D.N. Kariuki. When this was done, he recalls, the rm promised top restore the section, but this has not happened. The same company, Kariuki adds, dug another trench near the Coca Cola bottling plant at Embakasi to replace old pipes. They lled it with soil and left. That was a year ago. His contact is dnkaris@gmail.com. POLICE INEPT. Police have badly let down Hillary Nganga who says he was robbed of his white Toyota Corolla car, Reg KBE 681B, at gunpoint on April 21, 2010, at home and he promptly reported the incident to Juja Police Station. It was booked in the Occurrence Book, No 37/21/4/2012. Frustrated by the long delay in solving the case, Hillary has been to various police stations and was shocked to note that the robbery had never been circulated. Police have never visited the scene of crime to dust it for ngerprints. His contact is hillarious44@yahoo.com.
HIGHER LEARNING | Calleb Gudo
University education: Real quality as well as the numbers must be considered E

ducationists agree that three factors inuence the quality of students that graduate from institutions of higher learning. These are entry qualications, creating a diverse student body, and student aptitude the willingness of the student to pursue a given course. The entry qualications are useful for identifying admissible students as well for predicting their potential. However, the quality of graduates is not mere grades but also the conviction to pursue a particular profession and display a sense of purpose. Thus, the process of admitting students to universities should not limit itself to grades, but aim at quality. Attaining national unity is a goal the admission process should aim at by creating a diverse study body. To throw light on this goal, we need to understand public universities. First, most of those admitted are self-sponsored. There are more self-sponsored students in public universities than in private universities. Secondly, most universities are monolithic, with the majority of students (60 per cent or more) coming from the immediate ethnic community except those found in Nairobi. The danger with such a situation is that the universities end up producing stereotype tribal chauvinists. Outside their tribal boundaries, other employment opportunities in private and public universities. To safeguard the quality of graduates, there is a need for the government to formulate policies regulating admissions. As Kenya embraces devolved county governance, there is need for concrete eorts to instil the spirit of national cohesion through the education system. We should be scared now that more universities are being created in rural areas. It is good to provide access to university education to as many Kenyans as possible, but we must protect nationhood rather than sacrice it at the altar of political expediency. Currently, an amorphous entity called the Joint Admissions Board provides admission services to public universities for direct entry students. However, this body will soon be replaced by a central admissions organisation catering for both public and private universities. Higher education is undergoing unprecedented change. With privatisation opening doors to mature students who are working and others who may not have obtained the minimum cut-o grade for direct entry at secondary school level, the majority of students are now admitted by individual universities. Thus, a convincing pass in the secondary school examination is no longer the
Graduands of a local private university: CATS may not help

communities are foreign, second-rate, enemies or suspects who need to prove their innocence. Kenya embraced the quota system for admission to secondary schools in the 1980s. This policy ensured 85 per cent of such students came from the host district. The products of this policy are tribal chauvinists as we saw during the post-election violence. It required negligible eorts to persuade graduates at various levels of this system to believe that the neighbours who had lived peacefully with them for years were enemies to be fought and killed. This is what we saw during the land clashes of 1992 and 1997, and the post-election violence. It is, therefore, not surprising that negative tribalism and nepotism are hindrances to equal
only requirement as in the past. The new students admissions body must try to avoid the shortcomings of its predecessor which treated students as mere statistics. The new system should standardise and close quality gaps in the admission of both direct and mature students to private and public universities. The students should be allowed to apply directly for courses at universities of their choice. The respective universities will admit their capacity and roll over excess to other universities. The role of the admissions body should be to conrm available slots in all universities for every course and disseminate this information to all stakeholders. A centralised system runs counter to the spirit of devolved government and eliminates incentives for competition and innovation. In view of the persistent examination irregularities, caution must be exercised if continuous assessments tests are going to be used to grade students for placement in higher education or employment. Many Kenyans have proved to be short-cut experts and CATS may be largely abused. Dr Gudo is the dean, Faculty of Education and Arts, KCA University. (callebugudo@yahoo.com)
Uncollected national identity cards

WHERES MY ID? Two years ago, John Mwai Kimani applied for a correction of the names in his national identity card, No 24205398, at the National Registration Bureau headquarters in Nairobi. He paid the Sh1,000 fee so that the names in the ID could match those in his academic certicates. To date, the new ID has not been issued to him and he would like an explanation on the delay, which, he claims, has already cost him a scholarship and a job at a bank. His contact is Tel. 0725817652 or jmwai@hotmail.com. WHY FIGHT FOR POLITICIANS? Nothing pains Justus Mutua as much as seeing rival party supporters ghting while the leaders they so ardently support are themselves not ghting. Acutely aware of the consequences of past conicts, Justus is convinced that Kenyans will never learn from past mistakes. Why ght so hard for an individual who does not even know you? he poses. It is time Kenyans styled up. His contact is justus.mutua@yahoo.com. JKIA A NATIONAL SHAME. Just back from a trip overseas, Epimach Maritim says he was not particularly impressed by the countrys major airport, the JKIA in Nairobi. To him, what should be the shop-window to the country needs to be spruced up. What he would like to see go rst are the dirty carpets, and in their place, have neat non-slip tiles. The Immigration counters should also be upgraded and the areas outside the terminals and restaurants properly lit up. His extension is epimach@gmail.com.
Have an immaculate day, wont you!
NAIROBI GOES TO THE DOGS | Samuel B. Macharia
Who will make the city council deliver? A

s the dust raised by the PricewaterhouseCoopers (PwC) report on the City Council of Nairobi settles, the city dwellers are waiting with bated breath for a timely implementation of the recommendations. Spending Sh7 billion annually paying sta, 92 per cent of whom are incompetent more than 10,000 out of the current 11,500 employees is unacceptable. Little wonder that City Council of Nairobi owes more than Sh21 billion to the Local Authority Provident Fund, the NSSF and the NHIF! As expected, sta reaction was fast and furious, reminding me of Napoleon Bonapartes assertion that we should never ascribe to malice that which is adequately explained by incompetence. One wonders whether the employees were suering from the tendency for incompetent people to grossly overestimate their skills. The Nairobi County government may have to contend with this baggage of incompetence and huge wage bill if it inherits the City Council of Nairobi. According to the report, 7,410 employees do not possess the skills required in the new county structure and hence transfer to other county governments is out of question. Further, 3,676 of them are redundant.
No performance improvement will be realised unless measures are put in place to improve organisational eciency
The World Bank Doing Business 2011 report ranked Kenya at number 35 globally on the ease of dealing with construction permits. Earlier, Kenya was rated among the worlds most cumbersome, and it took ages to be connected to trunk services such as water, sewerage and electricity. Further, 90 per cent of slums have benetted from lighting projects. Disaster preparedness has improved over the years. Unfortunately, sta seem to lack the tools and equipment to do their jobs. For instance, while international standards require one re station for every population of 300,000, Nairobi has one per two million people! This means that re disasters will continue to be a big challenge for the council. For the council to be converted into a highly-performing organisation, a few radical changes need to be put in
place the Four Ps of organisational improvement. Firstly, the purpose of the organisation in the new socio-economic and political dispensation needs to be claried and well-articulated. Secondly, the processes should be looked into, and where possible, considered for re-engineering to ensure organisational eectiveness. No performance improvement will be realised unless measures are put in place to improve organisational eciency. The organisation should be designed and structured in the best way that supports service delivery. Thirdly, the people are the most important resource for the organisation. How are they recruited, rewarded and developed? A systematic job analysis should be undertaken and suitable job descriptions developed for all sta. Sta should be matched with their jobs to ensure that square and round pegs are put in their respective holes. Performance management of sta and management of succession are hallmarks of a highly performing organisation. Lastly, the CCN needs policies and procedures which ensure fairness, consistency and compliance with employment and other laws. Mr Macharia is a principal lecturer at the Kenya Institute of Administration
E-mail: watchman@nation.co.ke or write to Watchman, POB 49010, Nairobi 00100. Fax 2213946.
14 | Letters
To the editor
Theres more to Kenyan runners than hard work
I understand columnist Rasna Warahs attempt to ward o detractors of our athletes (Nation, May 7) when she says it is a result of sheer hard work, discipline and dedication She . stresses that this success has nothing to do with the genetic advantage or legs that look like a birds. Yes, the gallant sons and daughters of this land must surely be hard workers in their eld, but lets face it: Isnt that act of praise an indirect indictment of other communities who make attempts at athletics as, well? Is it really practical to assume, for instance that a certain community from around Nandi (picked purely for illustrative purposes) are exclusive hard workers and that say, if the Swahili from the Coast (also picked for illustrative purposes) were to adopt the same training regime as their counterparts from the Nandi, more medals would be won by Kenya in long races? If we always take the rst 20 out of the 25 positions (as she posits in her article), would we logically improve this tally to, say 40 out of 50 positions? I think we may want to be patriotic, but if we are honest, we must admit the Wise One up there knew what He was doing, perhaps sprinkled some legs here, brain there, perseverance some place else, etc. I do not see Harambee Stars beating Brazil in a World Cup nal, just as they may not dominate the marathons like we do! It is just sometimes in the wiring by the maker. GACHIENGO GITAU, Nairobi
The editor welcomes brief letters on topical issues. Write on e-mail to: mailbox@ ke.nationmedia.com. You can also mail to: The Editor, Daily Nation, POB 49010, Nairobi 00100. Letters may be edited for clarity, space or legal considerations.
TALKING POINT
Its easy to unmask the owners of clinic at centre of corruption claims

he National Hospital Insurance Fund stands accused of facilitating the theft of public funds through phantom hospitals. One hospital that got most of the taxpayer millions made elaborate eorts to hide the identity of its directors. The director with controlling interest is an o-shore company registered in a tax haven. It would be interesting to hear from Kenya Revenue Authority how the PIN information was captured because one must provide a PIN certicate from KRA before opening a bank account in Kenya. Additionally, such a company would have a new generation PIN whose information must have been passed on to KRA from Sheria House after the certicate of incorporation was scanned and posted into the data base. That is the procedure. The o-shore company has a PIN certicate from KRA, so the human directors are persons well known by the data centre there. It is campaign time and our outgoing political Cabinet will invent all sorts of schemes to steal campaign funds from the public. They must be stopped. The fact that members of the board at NHIF, the minister and the permanent secretary have not been arrested and prosecuted must mean that our police force is still politicised and this could lend credence to those that say we need to sack all policemen and recruit afresh in a professional manner. KARIUKI MUIRI, Karatina
Emails from correspondents
SHORT TAKES
STUDY LAWS: A vast part of the electorate is not conversant with the contents of the Constitution and related laws. They have left the duty of interpretation to politicians who do it in a way to suit their own selsh needs. So as to protect the Constitution and other laws from mutilation by politicians, Kenyans must remain vigilant and keep abreast of the implementation process of the Constitution. It is only by keeping our leaders under pressure that we will be able to sustain the changes heralded by the new laws. ALEX KIMONDO, Nyeri PROBE CLAIMS: Gem MP Jakoyo Midiwo fell into trouble for allegedly defaming a politician with a case involving a plot to assassinate Prime Minister Raila Odinga. Several political personalities have come out to rubbish claims that the premiers life is in danger. Mr Midiwo has come out more outspoken to assert that there is such a plot and that he is not going to be cowed by threats of incarceration. Mr Midiwo may be telling the truth and such claims must be thoroughly looked into before jumping to hasty conclusions. KARANJA wa KINYANJUI, Kikuyu RAIN A DISASTER: Kenya has experienced heavy rains in most parts for the last one month. The destruction by rain should be declared a national disaster. Roads have become more dangerous than before. People have drowned. There have been landslides and buildings collapsing from heavy pressure of the waters. Trees have fallen on peoples houses causing families to remain homeless. Many people have become IDPs and are calling for the government to help them. Is this their fault to become homeless? They need help. MODESTA AUKA LUNGATSO, Kakamega BLAME SMOOTH ROADS: What are we going to do to stop road carnage? The country is losing precious lives on our roads. Travelling has become scary. When the roads were bad and bumpy, we blamed the roads for the accidents. Now we blame the roads for being too smooth and slippery. But accidents can mainly be blamed on human error. Speeding to overtake another vehicle, in poor visibility is the major one. Along the Nairobi-Mombasa highway, all blackspots should be clearly marked to discourage motorists from overtaking. Whenever Im on that road, I see reckless overtaking in the rain. JUSTIN OSEY PETER, Mombasa
Prof Richard Muga (left) clashed with NHIF board members before his sacking from chairmanship last week.
FILE | DAILY NATION
Spoilt the party

Im often proud of being Kenyan. What with our star athletes, and Kenya topping the list of African countries with the highest growth in new investments, beating giants like South Africa. What with the fact that Kenyan rms made the most cross-border investments? But NHIF theft has spoilt the party and boardroom and Cabinet battles have made matters worse. Do we realise the damage the public theatrics and tantrums are doing to the country and its choice for holiday or investment? ROSE KAMANDA, Nakuru
Wash dirty linen

It was shocking to see our health custodians wash their dirty linen in the public. It is apparent that millions of the taxpayers money have been looted enough for the owner (taxpayer) to notice . The case of nondescript medical clinics purporting to oer health services to thousands of civil servants was unbelievable. How could the private-owned health facilities be allocated more funds than Kenyatta National Hospital? This is a sign of bad governance and impunity. BENEDICT TOROITICH, Eldoret
Trucks should not be on the road after 6pm

Alexander Chagemas sentiments on night driving (Nation, May 7) deserve support. Driving from Nairobi to Eldoret and back in the night, for example, is the greatest risk one can take. Lorries without tail lights or any reective material on the rear dot the road. Add to this, the other trucks from the opposite direction with full lights and you have the ingredients for the ever increasing road carnage. I presume police have forgotten there is a rule that heavy vehicles should not be on the road after 6pm. Or was this among the many roadside declarations in 1999? Police should also stop seeking bribes from drivers of bad vehicles. DAVID EKIRU, Nairobi
Orange party has delivered on its MoU with Muslim forum

The 2007 General Election was characterised by a desire for change through a change of the constitution. Come election therefore the ODM won many voters support as the party promoting the change. As a result, ODM and its presidential candidate Raila Odinga received massive popular support. The anticipated victory by ODM prompted minority groups who felt neglected by previous administrations to pledge support. One such group was the National Muslims Leaders Forum (NAMLEF) which concluded an MoU with the ODM candidate. While NAMLEF pledged to mobilise the Muslim vote, Mr Odinga pledged to nominate a Muslim cleric on an ODM ticket. While Mr Odinga never occupied State House after the elections, this did not deter him from ghting for equal rights for all through the constitution. This is evident in distribution of important posts to previously neglected areas and religions, especially Muslims, as well as women. Those who allege that Mr Odinga did not full his pledges as per the MoU are not realistic. He has accomplished many of the pledges without even being the president. Achievements by minority groups following the new Constitution should also bring to mind the fact that ODM fought hard for the new set of laws against a strong tide of those who preferred the status quo. KHAMISI MWANDARO, Kwale
YESTERDAYS TOPIC
DEBATE QUESTION
Comment on the clash between supporters of the PM and his deputy

ANTHONY GITTENS: I believe the behaviour of supporters reect the philosophy and rhetoric of their politicians. As neither the PM nor the DPM has denounced the unruly behaviour, one has to believe it had their approval. ARNOLD RONO: Both PM Raila Odinga and his deputy Musalia Mudavadi are entirely to blame for turning the funeral into a political battle ground. JOSEPH WACHIRA: Both presidential candidates should set good examples to their supporters at this time the elections are around the corner to cultivate peace and harmony. They should live as brothers from the same mother. CHARLES NZIOKA: It was an ugly scenario before the entire family and mourners. Violent groups siding with politicians should be stopped from disturbing funerals. We are tired of violence.
Was Health minister Nyongo justied to reinstate the NHIF board?

Send your comments to mailb ox@ke.nationmedia.com
15
16 | National News
VANDALISM | Whos sleeping on the job?
BRIEFLY
NAROK
Farmers threaten to kill stray elephants

Farmers in Narok County yesterday threatened to kill elephants invading their elds in Olopito and Nkareta if Kenya Wildlife Service sta fail to take action. They protested against the destruction of their maize and wheat crops by the animals, which are straying from Maasai Mara Game Reserve. Outgoing Narok KWS chief warden Kenneth ole Naisho, however, asked the residents not to kill the animals.
BARINGO
Minister appeals for peace in volatile area
The plaque on the statue of Tom Mboya in Nairobis Moi Avenue has gone missing and the once pink amingoes are lthy, showing that someone is sleeping on the job.
STEVE WAITHANJI | NATION
CHANGE | Worry over slow pace
Lobbies vow to push for police reform

Civil society says it wants force overhauled before the next election
BY PETER NGETICH
pngetich@ke.nationmedia.com
An assistant minister yesterday appealed for calm to avert a confrontation between two pastoral communities. Higher Education assistant minister Asman Kamama claimed that tension between the Pokots and Tugens was rising, fuelled by the banditry attacks along their common border. The Baringo East MP condemned an incident in which a rowdy mob blocked the Loruk-Marigat road, disrupting trac for hours. He also asked the provincial administration to call for a peace meeting between the warring communities.
NAKURU
ivil society groups have threatened to act over the slow pace of police reforms. The groups said in Nairobi yesterday that they would not allow the next General Election to go ahead with the current police leadership. In a statement read by Centre for Law and Research International director Morris Odhiambo, the groups, under the auspices of the National Civil Society Congress (NCSC), said the National Police Service Act had not been gazetted yet it was passed by Parliament and assented to by President Kibaki last August. We do not understand why it has not been gazetted, said Mr Odhiambo, who was with Release Political Prisoners director Odhiambo Oyoko, Living Light Foundation chairman Ochieng Kairaba and Sheikh Ramadhan of the Nubian Rights Forum. Mr Odhiambo said the
groups were considering taking legal action against the President if he did not fast-track the reforms. The President must tell Kenyans why he is stalling police reforms, he said. As NCSC, we are today putting the President on notice that we are considering all options and if the need arises, we shall take legal action against him for failing in his duties, he said. The NCSC also demanded that divisional police ocers and above be vetted before the polls. Mr Odhiambo said all promotions to such positions should stop and the Internal Security ministry secure officers files so that they are not tampered with.
Nema seeks views on airstrip safety study

An eective mechanism is required to avert air accidents at a proposed airstrip in Nakuru County, the National Environmental Management Authority (Nema) has said. In an advert in yesterdays papers, Nema is also seeking views from the public on an Environmental Impact Assessment Study report submitted to them for the project. The State has allocated Sh250 million for the airstrip.
KWANZA
KFS allocates land to agencies for oces

The Kenya Forest Service has donated ve-acre plot to the Kenya Revenue Authority and Immigration ministry in Kwanza to help boost business with neighbouring states. Kwanza DC Gabriel Risie said the government agencies agreed to put up a building housing immigration and KRA ocials in one place. The aim is to open up the border point and improve business with Uganda, Ethiopia and South Sudan, said Mr Risie. The area has no marketing centre compared to the Ugandan side. The DC said a proposal had been made to the KFS to allocate 120 acres to Nzoia County Council to build a market centre at the border.
We are today putting the President on notice that if the need arises, we shall take legal action against him for failing in his duties
Centre for Law and Research International director Morris Odhiambo
17
18 | Special Report
FOOD STOCKS | Cereal growers dismiss claims that farmers could be hoarding maize
Sh3,600
Millers are currently buying maize at Sh3,600 up from Sh2,500 in the past few weeks, but they are hardly receiving stocks.
There wasnt enough maize after the past harvest, but we expect the shortage to ease.
David Nyameino, Cereal Growers Association CEO
Lorries deliver produce to the Maize Milling Company Limited in Eldoret town last Friday. Despite the company buying a 90kg bag of maize at Sh3,600 up from Sh2,500, farmers are not delivering as expected.
JARED NYATAYA | NATION
Maize shortage starts to bite as millers complain of poor supply

Harsh reality dawns as price of Kenyas staple food per packet shoots up to Sh120 from Sh92 last week
BY GERALD ANDAE
gandae@ke.nationmedia.com aize shortage has started biting, with millers complaining of dwindling supply from farmers despite a 44 per cent price rise. This comes at a time when the National Cereals and Produce Board (NCPB) is storing less stocks than the numbers required for Strategic Grain Reserve (SGR). The NCPB normally stores three million bags of maize under SGR, but was meant to increase the number of bags this year to eight million. Currently, NCPB is has only 2.7 million bags under SGR. NCPB managing director Gideon Misoi says the board is yet to receive more funds from the government to buy more maize. We are still waiting, said Prof Misoi. Barely two months later, the harsh reality of increased prices of maize our is dawning upon Kenyans, with the countrys staple food having shot up to Sh120 from Sh92 last week. The SGR meant to create equilibrium between the supply and demand for maize has hardly enough stocks to last the country for a month.
36
Kenyans consume up to 36 million bags of maize annually against the declining production of 30 million. According to the Ministry of Agriculture report for this year, the country harvested 28 million bags last year.
Last year, the shortage of maize saw the price of a 90 kilogramme bag of maize sell at nearly Sh6,000, making the price of a two-kilogramme packet of maize shoot from Sh80 to Sh150. The government, through the Ministry of Special Programmes, issued Sh2 billion to NCPB which was used to purchase 600,000 bags of maize meant for SGR. Millers are currently buying maize at Sh3,600 up from Sh2,500 in the past few weeks, but they are hardly receiving stocks. A mill manager from one of the milling industries in Eldoret says that even with the attractive price, there are no queues of farmers jostling to sell their produce. Evidently there is no maize in the country because the price that we are offering currently would be enough to see us receive more maize from farmers, said the manager who sought anonymity. The current price of a 90 kilogramme bag of maize has gone beyond the Sh3,000 that the government has been offering farmers. In an interview, chairman of the millers association Diamond Lalji said that it was too early to start speculating whether farmers are holding maize or if their eorts to transport maize from the farms have been hampered by the ongoing rains. Mr Lalji, however, noted the possibility of a looming crisis cannot be ruled, out given the higher prices that they are oering and still no stocks are coming in. Well, farmers might have been hampered by the ongoing rains, but still, with this price and the planting needs that farmers have, they cannot hoard maize, said
experiencing a maize shortage, which has sparked the price of maize to go upwards, but this should not allow importations, said Mr David Nyameino, chief executive ocer of the CGA. Mr Nyameino said that though the situation might be a threat to the food security, the ongoing rains are likely to boost production of other crops such as Irish potatoes and beans, to sustain the country till the next harvesting season expected to start on July in South Rift. Mr Nyameino dismissed claims that farmers could be hoarding maize, arguing that last years harvest was low. There was not enough maize in the country in the past harvesting season, but we expect the shortage to ease with the onset of harvest in July, said Mr Nyameino. Last years maize crop was affected by erratic rain pattern that saw some farmers replant their maize owing to rain failure. Kenya Farmers Association director Kipkorir Menjo says the shortage has been created by middlemen who bought maize from desperate farmers at a lower price and stored it under the warehouse receipting system (WRS). It was a desperate attempt by traders to store maize to ensure that supply decline does to push the price of maize up, said Mr Menjo. Mr Menjo says the government has to re-look at the whole issue of the WRS by ensuring that they are in control of the cereals bought from farmers and also make sure that it benets farmers and not the business people whose intention is to make money from farmers and consumers alike. He noted that the current situation would force the government to import maize to feed the nation. A survey by the Nation at some the large scale farms revealed that nearly all of them had already sold their stocks. Ms Victoria Rotich, a large scale farmer in Uasin Gishu who harvested more than 3,000 bags of maize has sold her entire stock. It is not right to say that farmers are holding maize. From my understanding, the number of bags that we harvested last year was not more than what we harvested the previous year, said Ms Rotich. Her sentiments were echoed by Mr Christopher Kiptum, a farmer in Kuinet, Uasin Gishu County whose harvest for last year dropped to 3,000 from 5,000 bags during the previous year. NCPB is holding about 50,000 bags of maize under the warehouse receipting system, bringing a total of 643,000 the total bags of maize at the board, while millers have 300,000 bags, according to Mr Lalji
Farmers and consumers
Traders sort sisal ropes in Kisumu on arrival from Homa Bay on their way to Western Province where there is high demand by those using them to tether cattle to keep them from straying into maize farms.
Mr Lalji. Mr Lalji says that if there is no maize, then the crisis that looms could be more serious compared to last year, because Malawi, a major exporter to Kenya of nonGMO white maize, has banned exports. The country consumes up to 36 million bags of maize annually against the declining production of less than 30 million. According to the Ministry of Agriculture
JACOB OWITI | NATION
report for this year, the country harvested 28 million bags last year. Mr Lalji is asking the ministry to get the exact gure of the maize that is in the country right now in order not to mislead the public. Cereal Growers Association of Kenya (CGA) have been categorical that there is a general maize shortage, but cautioned against allowing millers to import maize. It is not in doubt that we are
19
VICTORY AT THE BALLOT BOX French president Nicolas Sarkozys reign halted Pages 24 and 25
WORLD
CULTURE | Members of the Lemba tribe have managed to prevent their customs from being eroded
BRIEFLY
BENGHAZI
Zimbabwean black Jews keep traditions if not the real faith
Leader undergoes hernia operation
A local leader of the Lemba people, wearing a prayer shawl, chronicles the lineage and migration of the tribein Gutu, 250 kilometres southeast of the capital Harare.
PHOTO | AFP
PROOF
Libyas interim leader, Mustafa Abdel Jalil, has undergone a successful hernia operation and is in good condition, doctors told AFP on Monday. The operation, which was very simple and lasted no more than a few minutes, was a success, said doctor Jamel al-Talhi. Talhi said Abdel Jalil was in good health after the Saturday operation and needed just a couple of days rest under medical supervision. Abdel Jalil was admitted on Friday to the hospital in Libyas eastern city of Benghazi after suering a drop of blood pressure which he and doctors attributed to work-related stress. (AFP)
Ethnic groups ties to Judaism are cultural and not religious, they say and if Judaism is removed their culture will be no more
BY JUSTINE GERARDY
GUTU, Zimbabwe, Monday
Science is on their side
KHARTOUM
UN asks Sudan to hand over deminers

The United Nations has asked Sudan to hand over four of its staers who were arrested more than a week ago by Sudans army along the tense southern border, a UN report said today. The four were UN sta who had been working on a humanitarian demining project in South Sudan. The UN has requested that the four sta be released and handed over into UN custody, said the weekly bulletin of the UNs humanitarian agency (OCHA). Sudans army said it arrested the South Sudanese, a South African, a Norwegian and a Briton in the Heglig oil region as they collected war debris for investigation. (AFP)
oices swell in a sacred song carried from ancient Judea to the scenic elds of a far-ung southern African village that is home to a lost tribe of Israel. We have been singing this song for about 2,600 years. Its an old, old song, said Perez Hamandishe, wearing a white crocheted skullcup with a blue Star of David in a small village near Gutu, some 200 kilometres south of the capital Harare. DNA evidence has proven that the verses were brought thousands of years ago from the Middle East to Zimbabwe, where members of the Lemba tribe still observe Jewish traditions. The secretive Lembas observe strict rules that have more in common with norms in Tel Aviv than Harare: a ban on pork, ritual slaughter of livestock and male circumcision. They see themselves as southern Africas tribe of black Jews who have honoured their Semitic roots for centuries, despite converting to faiths like Christianity or Islam. Their oral histories have been borne out by their genes: Unlike other groups with similar claims, the Lemba can point to genetic proof of links to the eastern Mediterranean. Causing a splash in the late 1990s, tests showed that
around 55 per cent of Jews called Cohen shared an ancestor in the time of Moses and that a Lemba clan did as well. They also shared this ancestor who lived about 3,000 years ago in the Middle East, said Lemba expert Tudor Partt. Its a very interesting genetics story, and its a very interesting human story in that the genetics supports the very passionate belief, he added. There is no written history of their forefathers passage to what is now Zimbabwe, but the Lemba believe that their forefathers arrived with a replica ark known as the ngoma lungundu that went missing. They say they are the descendants of white men who came from a place believed to be modern Yemen. But their ties to Judaism are cultural and not religious, they say. If you remove Judaism, you have removed our culture, said Mr Hamandishe, who is a member of Zimbabwes parliament. So we know Judaism as a culture, not as a religion. We tried to tell everyone about us, but people wouldnt believe. But now that hard science has proved it, we are now happy that TO COMMENT ON THESE AND OTHER STORIES GO TO www.nation.co.ke
what we have been telling them has now come to be the truth, said Mr Hamandishe, who has visited Israel. Numbering around 70,000, Lembas are also found in northern South Africa and share customs which are kept secret from the outside world through several cultural associations that interact with one another. Lemba is culture, said Shepherd Tseisi, the son of the chief in Mberengwa, another Lemba stronghold further south, reached via a bone-rattling drive down dirt roads that wind deep into the countryside. Because of our movements and the environment that we live within, some of our cultural activities tend to change. But that kind of concept of being a Lemba ... thats the same. The Lemba, who claim to have built Great Zimbabwe, a medieval stone city now in ruins that is a UNESCO World Heritage site, have managed to prevent their customs from being absorbed or wiped out by dominant local and colonial cultures. Because of the passing of time, quite a number of things were forgotten, but very important things were actually remembered, said local headmaster Jacob Nyikavaranda, one of the elders who act as custodians of Lemba history. (AFP)
While similar communities with Judaic identities exist in Africa, the Lemba have science in their corner. The Lemba are the only one who claim to have Israelite origins thats actually got any genetic proof that they do. There is this very strong DNA evidence that they came from the eastern Mediterranean. Theyre black, theyre a fairly wellintegrated part of southern African society, they speak only local languages and theyre Christians for the most part, so their identity is very complicated in racial terms. Views are mixed on taking advantage of Israels right of return, ranging from enthusiasm for settling in the Jewish homeland to reluctance to being uprooted to nd a new home and learn a new language. Above: Lemba people attend a meeting.
CAPE TOWN
SA seeks US help to tame road carnage

Troubled by rising road carnage, South Africa is seeking help from the United States to enhance road safety, the government said on Sunday. Transport Minister Sibusiso Ndebele stressed the need for SA and the US to share experiences on road safety because South Africa had major challenges with regard to road accidents, the Government Communication and Information System (GCIS) said. We lose thousands of lives every month. (Xinhua)
20 | Africa News
PLEA | United Nations Security Council should take action, says grouping
Portuguese speaking countries urge sanctions over Bissau coup

Community says the decision will be submitted to UN Security Council
BY TAMBA JEAN-MATTHEW
NATION Correspondent DAKAR, Monday
Somali government accuses nationals of plot over embassy

BY MICHAEL CHAWE
NATION Correspondent LUSAKA, Monday Somali government yesterday explained that the diplomatic row that took place in Lusaka, leading to the temporal closure of the embassy in that country by local authorities, was caused by a Somali national masquerading as an envoy. Zambian authorities late on Friday closed the Somalian embassy in that country after confusion emerged when another diplomat was sent in to take up the appointment without the knowledge of the one serving as ambassador, Mr Shirwa Ibrahim. It is a very embarrassing situation that we had to disclose our dierences at the police station, Ambassador Ibrahim, who took up oce three months ago, said. I m very sorry, that should not have happened, but I do have the right to call on the police and the local administration if I feel there is need. I called the police to come and take out the person who was causing violence the police came and asked him if he was a diplomat, unfortunately he said yes. He produced in Somalia (some documents), but that is not true, I think those documents are forged. Ambassador Ibrahim said the man who turned up to claim his post, only identied as Muhammed, was a resident and a member of the Somali-Zambia Friendship Association, an association he said had become more powerful than his embassy. He accused Somalians resident in Zambia of frustrating his governments operations. The police did not close the Embassy, as you can see that ag is ying high and I am here working peacefully, he said.
The number of countries that comprise the community of Portuguese speaking countries
Mr Chikoti as saying. West African leaders on Thurday recommended that Bissau Guinean lawmakers should name another candidate to replace Mr Periera in the view that a new candidate could be accepted by the junta which has refused to reinstate Mr Pereira and thereby blocking the transition process. Mr Pereira was the president of the national assembly in Guinea Bissau and became interim presidency in keeping with the constitution following the death of democratically elected President Malam Becai Sanha early this year. Both the Ecowas and the Community of Portugese Speaking Countries have condemned the military coup and its leaders in Guinea Bissau but Mr Chikoti said their community leaders were against the decision by Ecowas leaders.
he Community of Portuguese Speaking Countries (CPSC) has appealed to the United Nations Security Council to immediately impose economic and diplomatic sanctions against the military junta in Guinea Bissau. A statement by the community said the decision which will be submitted to the UN Security Council also concerns civilians connected with the military coup. It was taken at a ministerial council meeting of foreign aairs ministers of member states in Portuguese capital, Lisbon on Saturday. The community includes Portugal, Brazil, Angola, Cape Verde, Guinea Bissau, Mozambique and Equatorial Guinea.
Former interim President of Guinea-Bissau Raimundo Pereira (left) is greeted by an Ivorian ocial upon his arrival at the Felix Houphouet Boigny airport in Abidjan, on April 27, 2012. Carlos Gomes Junior and Raimundo Pereira were deposed in a military coup in Guinea-Bissau on April 12.
During the ministerial meeting, Angolas foreign minister Georges Chikoti, expressed disagreement over the decision by Ecowas leaders last Thursday requesting the national assembly in Guinea Bissau to
PHOTO | AFP
name another candidate to replace outsed interim President Raimundo Pereira. That is not our solution to the crisis in Guinea Bissau because it is against certain fundamental principles, the statement quoted
Im very sorry, that should not have happened

Ambassador Ibrahim
Africa News 21
HIGH TOLL | Villagers suer
Liberia to pioneer Ecowas volunteer scheme

BY KEMO CHAM
NATION Correspondent FREETOWN, Monday Ecowas is pioneering a US Peace Corps-styled volunteering scheme in West Africa with the deployment of young specialists to serve in member countries. 23 pioneer volunteers on Monday commenced a weeklong induction training in the Liberian capital, Monrovia, to prepare them for the maiden deployment. They comprise young specialists in various elds of human endeavour, and they will be deployed in Liberia, as part of the pilot project, one of the poorest countries in the region. Ecowas, as part of its Vision 2020 development blue print, set up the Volunteer Programme with the aim of providing supplementary services for member countries. The Ecowas Commission, in a statement, said the programme was geared towards strengthening peace-building, national reconstruction and accelerated development in member states. The programme is being supported by the African Development Bank (AfDB), the United Nations Volunteer Programme (UNV), UNESCO, the UN High Commission for Refugee (UNHCR), and the European Union (EU). The volunteers are aged between 18 and 35 years. They will go through training to enable them adapt to dierent social, cultural and political environments. They will be deployed in community-based associations, national and international nongovernmental organisations and specialised agencies.
Refugees arrive at the Mubambiro refugee camp from Sake at the weekend in the Masisi territory of Kivu-Nord province, where the Congolese armed forces (FARDC) have been ghting since April 29 a group of mutineers seen as loyal to a former rebel leader and indicted war criminal Jean Bosco Ntaganda.
JUNIOR D.KANNAH | AFP
27 killed by Congos Mai Mai militia

Masisi territory in North Kivu province also hit as army regains villages
KINSHASA, Monday
t least 27 people were killed and 60 others injured in an attack by the Mai Mai Simba militia in the northeastern province of Orientale in the Democratic Republic of Congo (DR Congo), local sources reported yesterday. The militia targeted bases of the DR Congo Armed Forces (FARDC) in Mambassa territory on Friday, killing 26 civilians and a FARDC captain, according to civil society sources in the region. General Jean-Claude Kifua, the commander of FARDCs
BATTLE
Thousands displaced
Since April 29, the FARDC and the men loyal to Ntanganda have been ghting in the eastern region of Masisi, displacing more than 500,000 people. Simplice Kpandji, the head of communication for the UNHCR in North Kivu, said from April 29 to May 2, his team registered 15, 000 new arrivals in the Mugunga camp in the extreme west of Goma, the provincial capital.
9th military region, did not give precise information on this attack, but said FARDC is tracking down the assailants in Mambassa territory. The Simbas are the ones who carried out the attack, he said, terming them as poachers and illegal exploiters of mineral resources in the area. The Mai Mai Simba militia are present in the southwestern part of Maiko national park. Their area of operation also includes Lubutu territory in Maniema province, where they have their headquarters. The ethnic composition of this militia group is mainly the Kumu tribe. Meanwhile, the Democratic Republic of Congos Armed Forces (FARDC) regained control of almost all villages of the Masisi territory in the North Kivu province after attacks by soldiers who recently defected, the military said on Sunday. The territory was occupied by the soldiers, who were exrebels and integrated into the army but still loyal to General Bosco Ntanganda, the man being sought by the International Criminal Court (ICC) for war crimes and crimes against humanity committed in the east of the Democratic Republic of Congo (DR Congo). FARDCs colonel George Okito said the army was going on with its operation to track down the rebels, mostly former members of the National Congress for the Defense of the People (CNDP) headed by ex-general Laurent Nkunda and Ntanganda. (Xinhua)
22 |
NOTIFICATION OF COMPLETION OF PREQUALIFICATION EXERCISE.

TENDER REF. NO. KeNHA/444/2012 - PREQUALIFICATION OF CONTRACTORS FOR ROAD MAINTENANCE FOR THE PERIOD ENDING 30TH JUNE 2014.
TO ALL APPLICANTS. Notice is hereby given that the prequalification exercise for the above tender has been completed. The results of the prequalification exercise have been posted on the Authoritys Website (www.kenha.co.ke) as well as Notice boards at Kenya National Highways Authority Head office and all Regional Offices. Successful applicants are required after confirming status of their applications from the website and notice boards to acknowledge this notification to signify their acceptance and address it to the respective Regional Procurement Officers within 14 days from the date of this notification. Those applicants whose names are not appearing in the list should consider themselves unsuccessful. Please note that this communication is final as there will be no letters of notification to individual applicants. Felix Koske FOR: DIRECTOR GENERAL
International News 23
CHANGE | Back to old job
Putin returns to Kremlin in power swap
Russias President Vladimir greets his wife Lyudmila at the Sobornaya (Cathedral) Square in Moscows Kremlin, yesterday, during Putins inauguration ceremony.
ALEXANDER ZEMLIANICHENKO | AFP
Outgoing president Medvedev proposed as the countrys new prime minister

MOSCOW, Monday
ladimir Putin today began a historic third term as Russian president in a glittering Kremlin ceremony overshadowed by the arrests of hundreds in protests against his 12-year domination of Russia. Mr Putin, head of state from 2000-2008, took over from outgoing president Dmitry Medvedev swearing to protect the rights of Russian citizens and also pledging a new stage in Russias development. The Kremlin bells echoed across Moscow and the presidential guard donned Tsarist-era uniforms for the brief but spectacular inauguration whose guests included old friends of Putin including Italian ex-premier Silvio Berlusconi. Placing his hand on a copy of the constitution, Mr Putin swore to respect and protect the rights and freedoms of the people and defend Russias security as he ocially took over from Mr Medvedev. Yet activists accuse Mr Putin of systematically sacricing rights in the pursuit of stability and lacking legitimacy after his knockout March 4 election victory with 63.6 per cent of the vote, which was marred by claims of fraud. Late today, Mr Putin proposed Mr Medvedev
as the countrys new prime minister under a job swap agreement that sparked protests last year. The lower house of parliaments speaker Sergei Naryshkin said Putin submitted Medvedevs name for confirmation shortly after taking the oath of oce for a third Kremlin term. President Putin was expected to personally present Medvedevs candidacy when the State Duma holds a special session that may include an ocial vote on Tuesday. The Duma is all but certain to approve the candidacy after both the ruling United Russia party and the LDPR group of the veteran populist Vladimir Zhirinovsky promised to support Putins choice. Medvedev now has the support of about 290 lawmakers in the 450-seat chamber while needing only a simply 226 vote majority to become Putins premier. Russian news agencies said the former president held his rst consultations in the chamber Monday afternoon with members of United Russia amid jockeying for position in his new government. (AFP)
I respect and protect the rights and freedoms of the people

President Putin
24 | International News
A NEW ERA | Massive victory rally in the iconic Place de la Bastille in Paris as Sarkozy concedes defeat
World leaders reach out to poll winner

Obama invites new leader to White House as German Chancellor tells of oering open arms
PARIS, Monday
uropean and world leaders reached out today to president-elect Francois Hollande, Frances rst Socialist head of state in 17 years, despite jitters about his pledge
to renegotiate Europes austerity pact. The euro sank and stock markets fell as the results of the presidential vote in France and Greeces general election stoked anxiety about the fate of austerity policies designed to end the eurozones
crippling debt crisis. US President Barack Obama telephoned Mr Hollande to congratulate him and invite him to the White House this month following his humiliating defeat of outgoing right-winger Nicolas Sarkozy in Sundays
second-round election. Mr Obama indicated that he looks forward to working closely with Mr Hollande and his government on a range of shared economic and security challenges, White House spokesman Jay Carney said in a statement. German Chancellor Angela Merkel also wasted no time in contacting Mr Hollande once his victory was confirmed even though she had made no secret of her support for his right-wing predecessor and EU scal pact architect Sarkozy. Ms Merkel, Mr Sarkozys closest European ally, invited Mr Hollande to Berlin for talks, and her Foreign Minister Guido Westerwelle told reporters: We will work together on a growth pact. I am condent the Franco-German friendship will be further deepened. Ms Merkel said today she would welcome Mr Hollande with open arms when he visits Berlin. She said they agreed during a phone call on Sunday to work well and intensively together, adding: Franco-German cooperation is essential for Europe and we all want Europe to succeed. Mr Hollande has called on the eurozone to broaden its focus from austerity to incorporate growth, a message he repeated in his victory speech, declaring Austerity can no longer be the only option. Meanwhile, nal results for Frances presidential election conrmed today that Mr Hollande won with 51.62 per cent of the vote to Mr Sarkozys 48.38, the interior ministry said. The final official tally recorded more than 18 million
TRANSITION
Power change date agreed
Outgoing French leader Nicolas Sarkozy (pictured) will hand power to president-elect Francois Hollande on May 15, following talks between the two camps, the presidency announced Monday. The Socialist election winners campaign director Pierre Moscovici agreed the date in a telephone call with Sarkozys chief of sta Xavier Musca on Monday morning.
votes for the victor who had already been recognised as president-elect. Mr Sarkozy got 16.9 million votes and 2.1 million people cast blank or spoiled ballots. Turnout was just over 80 percent of an electorate of 46 million potential voters, relatively high by modern standards but down on the last presidential election in 2007. Most of the results were already known late on Sunday when Hollande staged a massive victory rally in the iconic Place de la Bastille in Paris and Sarkozy conceded defeat before supporters at a nearby conference centre. (AFP)
Frances Socialist Party newly-elected President Francois Hollande celebrates with his companion Valerie Trierweiler at the Place de la Bastille in Paris early yesterday.
JEAN-FRANCOIS MONIER | AFP
International News 25
NOTHING TO HIDE | He has no wife
Clinton wants female US president in her lifetime

KOLKATA, Monday
Secretary of State Hillary Clinton said today she hoped the United States would elect a woman as president during her lifetime, but again rejected calls for her to make a new White House run. I hope so. I really want to see that in my lifetime, Mrs Clinton, 64, told a public forum in the Indian city of Kolkata when asked about the prospects for a female US president. Mrs Clinton said that women still suffered from a glass ceiling in politics, complaining that media write of the pastel hues in women leaders wardrobes even when they are talking about defence policy. But Mrs Clinton, who narrowly lost the 2008 Democratic presidential nomination to Barack Obama, politely rebuffed calls from Indian students to make another shot at the presidency in 2016. Im very attered, but I think its time to step o the high-wire, said Mrs Clinton, who has repeatedly said she will retire when Obamas term ends in January. Id like to go back to India and just wander around without having the streets be closed and a lot of security, she said. (AFP)
64
The age of the former rst lady
A picture taken on November 20, 2005 in Le Mans, shows Mr Hollande, then Socialist party leader and Segolene Royal, socialist president of Poitou-Charentes region, then his companion, as they participated in a party congress.
PHOTO | AFP
Mr Normal to move into Elysee palace

He is the son of a doctor with far-right sympathies and of a social worker
PARIS, Monday
e dubbed himself Mr Normal during Frances presidential election campaign, a modest scooter-riding everyman in touch with the concerns of ordinary voters. But, after winning Frances presidential vote, Socialist Francois Hollande faces some far-from-ordinary challenges as the leader of the eurozones second-largest economy, a nuclear-armed UN Security Council member. Derided by critics as inexperienced and soft and nicknamed Flanby after a brand of wobbly pudding Hollande is set for a crash course in governing after his victory over incumbent Nicolas Sarkozy. I am what you see, there is no artice. I dont need a disguise. I am who I am. Simple, direct, free, Mr Hollande said in the campaign, during which he contrasted his humble style with that of the ashy and aggressive Sarkozy. A protege of modernising former European Commission chairman Jacques Delors, Mr Hollande is of the generation groomed under the only previous Socialist president, Francois Mitterrand, who left oce in 1995. Born in 1954 in the northern city of Rouen, Hollande was the son of a doctor with far-right sympathies and of a social worker. His father later moved the family to Neuilly-sur-Seine, the posh Paris suburb where Sarkozy was also raised. He was educated at
the elite Ecole National dAdministration (ENA), where in 1978 he met Segolene Royal and the couple started a threedecade relationship. In 1981, after Mitterrand swept to power, Mr Hollande challenged Jacques Chirac who later became French president in his parliamentary efdom in the rural region of Correze, but lost. Mr Chirac, who once mocked Hollande as less well-known than Mitterrands Labrador, retains aection for his old rival and even said he would vote for the Socialist, though he later passed o his remark as a joke. Mr Hollande eventually won the seat in 1988 and was re-elected in 1997, 2002 and 2007. In 1997 he took over the Socialist Party leadership, a post he held until 2008 when he was replaced by former labour minister Aubry, also the daughter of his former mentor Delors. Some had pushed for Hollande to take on Sarkozy in the 2007 race but Ms Royal had already emerged as the leading Socialist nominee. (AFP) The couple, who by then had four children, split before the vote but news of the break-up did not emerge until after Ms Royals defeat. Hollande is now in a relationship with political journalist Valerie Trierweiler. She reportedly encouraged him to lose 10 kilogrammes of unpresidential body fat and adopt thinner-framed glasses for the campaign. (AFP)
I am what you see, there is no artice. I dont need a disguise

Francois Hollande
26 |
BUSINESS
WILDLIFE | Heavy rains have forced amingos to y to drier regions in search of food
AFRICAS NEW WORLD BANK BOSS TAKES OVER MANTLE Former Kenya country director assumes new oce. P.29
IFC in deal to support small lenders

World Banks private investment arm has entered into a partnership with a credit card company to help extend nancial services to low-income earners. The International Finance Corporation (IFC) and the MasterCard Foundation yesterday signed a $37.4 million deal to help micro-nance institutions and mobile money providers to expand and diversify their services. They have set a target of increasing micro-nance services to 5.3 million people in sub-Saharan Africa within the next ve years. The deal represents IFCs largest partnership with a private foundation. We will work with existing mobile nance service providers and micro-nance institutions to help reach low-income customers, said IFC senior manager, Mr Peer Stein, during a video conference in Nairobi. Two thirds of the funds will be used to accelerate expansion of micro-nance while a third will go into mobile nancial services. However, the corporation revealed that partnerships with Kenyan mobile money providers would be unlikely since the market is already saturated. Twenty-seven microfinance institutions in 14 African countries are currently being vetted to benet from the deal. The corporation invested $200 million in the East African region in 2011, about half of which went to Kenya, and has a similar target for 2012.
Hippos are pictured near Lesser amingos at Lake Oloidien near Naivasha recently. Kenyas Lesser amingos are currently in abundance in the drier regions after heavy rains nationwide altered the salinity of water in many lakes, making them less rich in phytoplankton, the amingos food and forcing the birds to y to drier regions.
PHOTO | AFP
DISPOSAL OF ASSETS | Legal department working on the anomalies
NSSF cancels sale of property tender, citing discrepancies

Fund boss says deal did not have full disclosure on the properties to be sold
BY JOSHUA MASINDE
jmasinde@ke.nationmedia.com
tender detailing the sale of some of National Social Security Fund (NSSF) properties in Nairobi, has been cancelled over discrepancies. We have cancelled the tender because the documents had some discrepancies, which our legal department is working on right now and should be through by next week, NSSFs acting managing trustee, Tom Odongo said. The tender, he said, did not have full disclosure on the
specications of the properties to be sold. Sources close to the deal told Nation last week that a
Value of View Park Towers in shillings. The money will be invested in Treasury bonds by the fund
1.8bn
Value of Hazina Towers in shillings
1bn
similar tender advertisement was placed early this year but the responses from prospective buyers had been poor, hence a re-advertisement of the same last week. The move by NSSF could delay its compliance with conditions by the Retirement Benets Authority, which requires that fund managers retain a portfolio of less than 30 per cent in real estate investments to ensure a liquidity balance. Over the past few years, we have managed to reduce our real estate investments from 63 per cent in 2004 to 32 per cent last
year, to realign with the RBA requirement of 30 per cent to lower illiquidity in the portfolio, Mr Odongo said. He added that proceeds from the sale of the properties an undeveloped plot on Bishops Road in Upper Hill area, View Park Towers valued at about Sh1.8 billion and Hazina Towers, valued at about Sh1 billion would be invested in Treasury Bonds and Bills and in the equities market. Mr Odongo was speaking while handing over title deeds to 200 homeowners at the Hazina Estate in South B.
We will work with existing mobile nance service providers and micronance institutions
IFC
Sugarcane farmers count losses as oods destroy elds

Cane farmers in Nyanza Sugar Belt want millers to redistribute seeds on credit following oods that are destroying crops in the region. The oods destroyed massive hectares of young sugarcane, which we had planted for the season when the water canals broke their banks, said the regions farmers association head Mr Shadrack Okewe. Speaking on phone, Mr Okewe said that more than 100 hectares of the crop were damaged at the South West Kano and Central Nyakach, which has led to losses worth millions of shillings. Mr Okewe, who lost 24 hectares of sugarcane after the oods hit his farm, said he was now bankrupt having borrowed a loan and invested heavily on the crop. I spent more than Sh400,000 which has all been swept away by the oods in the past week, he said. We were taken aback when the rains brought disaster oods instead of good tidings; we do not know how we will repay the loan, he said. A farmer at West Kano irrigation Scheme Mr Evans Kopiyo said that his cane was destroyed in last weeks oods and he does not know how he will repay the Sh700,000 loan he took to plant the seeds. A tonne of cane seeds costs Sh4,300 and we would need about 30 tonnes, which we can repay once the cane is ready for harvesting, Mr Kopiyo. The farmers urged the Kenya Sugar Board Director in Charge of Nyanza Sugar Belt Zone Mr Nicholas Oricho to intervene in urging the factories to give them seeds before the end of the rains.
Business News 27
LAUNCH | New insurance products

Head Office: Victoria Towers, Mezzanine Floor, Kilimanjaro Avenue, Upper Hill. PO Box 41114 -00100, Nairobi, Kenya. Tel Nos: 2719499 / 2719815 / 2710271 Fax Nos: 2713778 / 2715857. E- mail: victoria@vicbank.com Branch: 7 Victoria Office Suites, Riverside Drive, Westlands. Tel: 4441955 Fax; 4441953
UN AUDITED FINANCIAL STATEMENTS AND OTHER DISCLOSURES FOR THE QUARTER ENDED 31 MARCH 2012
31-Mar-2011 UN-AUDITED A STATEMENT OF FINANCIAL POSITION Assets Cash (both local and foreign) Balances due from Central Bank of Kenya Kenya Government securities Foreign Currency Treasury Bills and Bonds Deposits and balances due from local banking institutions Deposits and balances due from banking institutions abroad Government and other securities held for dealing purposes Tax recoverable Loans and advances to customers ( Net ) Investment securities Balances due from group companies Investments in associates Investments in subsidiaries Investments in joint ventures Investment properties Property and equipment Prepaid lease rentals Intangible assets Deferred tax asset Retirement benefit asset Other assets Total assets Liabilities Balances due to Central Bank of Kenya Customer deposits Deposits and balances due to local banking institutions Deposits and balances due to foreign banking institutions Other money market deposits Borrowed funds Balances due to group companies Tax payable Dividends payable Deferred tax liability Retirement benefit liability Other liabilities Total liabilities Shareholders funds Paid up / Assigned share capital Share premium / ( discount ) Revaluation reserves Retained earnings/Accumulated losses Statutory loan loss reserve Proposed dividends Capital grants Total shareholders funds Total liabilities and total shareholders funds STATEMENT OF COMPREHENSIVE INCOME Interest income Loans and advances Government securities Deposits and placements with banking institutions Other interest income Total interest income Interest expense Customer deposits Deposits and placements from banking institutions Other interest expense Total interest expense Net interest income Other operating income Fees and commission on loans and advances Other fees and commissions Foreign exchange trading income Dividend income Other income Total non interest income Total operating income Operating expenses Loan loss provisions Staff costs Directors emoluments Rental charges Depreciation charge on property and equipment Amortization charges Other operating expenses Total operating expenses Profit before tax and exceptional items Exceptional items Profit after exceptional items Current tax Deferred tax Profit after tax and exceptional items Earnings per share Dividend Per share SHS 000 28,593 307,869 605,925 0 191,951 238,245 0 0 3,710,899 621,973 0 316,491 0 0 0 139,876 0 13,023 3,196 0 121,972 6,300,013 0 4,870,203 207,717 0 0 0 0 42,346 0 0 0 34,308 5,154,574 399,149 0 3,859 707,931 34,500 0 0 1,145,439 6,300,013 31-Dec-2011 AUDITED SHS 000 32,685 242,757 1,197,269 0 709,102 363,831 81,383 5,195 4,110,436 333,896 0 305,390 0 0 0 145,430 0 10,787 3,939 0 103,135 7,645,235 0 5,906,502 170,491 0 0 282,555 0 0 0 0 0 33,208 6,392,756 399,149 0 (16,969) 835,799 34,500 0 0 1,252,479 7,645,235 31-Mar-2012 UN-AUDITED SHS 000 33,226 476,348 1,332,390 0 1,406,499 555,806 81,518 0 3,945,437 274,701 0 305,390 0 0 0 144,517 0 9,932 3,939 0 122,263 8,691,966 0 6,879,947 83,342 0 0 302,069 0 28,105 0 0 0 68,211 7,361,674 399,149 0 (16,994) 913,637 34,500 0 0 1,330,292 8,691,966
Mr Tom Gitogo, Pan Africa Life chief executive ocer, during the launch of the Flexi Cash and Flexi Academic Plus insurance products at The Sarova Stanley Hotel in Nairobi yesterday.
DIANA NGILA | NATION
SUSPICION | Micro-nanciers assets were conscated in 2005
Judge orders CBK to return Akibas assets

Court rules that bank had no authority to raid rms business
BY PAUL OGEMBA
pogemba@ke.nationmedia.com
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 B 23 24 25 26 27 28 29 30 31 32 33 34 35 C 36 37 38 39 40 41 42 43 44 1 1.1 1.2 1.3 1.4 1.5 2 2.1 2.2 2.3 2.4 3 4 4.1 4.2 4.3 4.4 4.5 4.6 5 6 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 7 8 9 10 11 12
he Central Bank has been ordered to release and return items of a micro-nance institution it conscated on suspicion that it was operating as a bank. Justice Alfred Mabeya on ruled that CBK had no authority to raid the premises of Kenya Akiba Micro Financing Limited, since it was legally registered to carry out nancial operations and hire purchase. There is no reason why CBK should continue clinging to the companys property when it was duly registered and incorporated as a company by relevant government ministries and issued with a certicate of incorporation, ruled Justice Mabeya on Friday.
CBK was ordered to return computers, tax records, seals, original title deeds, certicates of lease, vehicle log books, customer les, banking and nancial records. In November 2005, CBK raided the companys premises in Nairobi, Kitengela, Ongata Rongai and Voi on suspicion that it was oering banking services without being licensed to operate under the Banking Act.
Action was illegal
The company moved to court in 2006 claiming that CBKs action was illegal because it was incorporated under the Companies and Cooperatives Act and denied operating as a bank. It sought a return of its properties and an order compelling CBK to make an undertaking to compensate it Sh2 billion as value of the property. Justice Mabeya found in his ruling that CBK could not claim it had not been able to analyse the records and data of the company to nd out the nature of its business, yet it has been in possession of the rms
records for six years. CBK has failed to produce anything to show that the business activities of the company amounted to banking or business of deposit taking, said the judge. He ruled that CBKs contention that the company was carrying out business in contravention of the Banking Act was a red herring being raised to try and cushion itself from liability for the blatant and illegal raid of the company premises. He added that even after analysing the company records, CBK had not proved that the micro-nancier was doing anything other than hire purchase business. Justice Mabeya ruled that detention of the company property is not only unconstitutional but unacceptable in a society that prides itself to be under the rule of law. In any event, it was the government that registered the company with such name. Why should then the agents of the same government seek to punish the company for its own mistake, said the judge.
116,507 13,944 1,876 11,589 143,916 48,041 722 0 48,763 95,153 5,330 10,003 635 0 (181) 15,787 110,940 0 25,832 5,250 1,369 3,350 807 12,320 48,928 62,012 0 62,012 19,500 0 42,512
582,246 70,824 48,545 38,455 740,070 257,399 11,817 0 269,216 470,854 20,596 46,857 30,889 4,500 27,815 130,657 601,511 5,794 119,281 28,615 6,306 15,683 3,420 92,725 271,824 329,687 0 329,687 100,180 (743) 230,250 11.54 3.00
212,722 48,660 48,562 6,462 316,406 169,050 3,044 0 172,094 144,312 7,105 15,528 5,431 0 (942) 27,122 171,434 20 29,755 5,700 1,898 4,059 855 18,008 60,295 111,139 0 111,139 33,300 0 77,839 3.90
Young entrepreneurs get boost

A micro-nance company has entered into partnerships with several corporate bodies to oer loans to creative youth for start-ups across the country. Mr Daniel Mavindu, Raki chief executive ocer, said the institution had set aside Sh500 million to be loaned to young entrepreneurs. This is a performancebased loan scheme. We are targeting unemployed youth. The key consideration to get a loan from Raki is innovation. We are targeting creative, outgoing youth groups, he said in a press release yesterday. To achieve the objective of reaching many in the country, the micro-finance firm is collaborating with Youth Development Fund, Toyota East Africa, Amedo Centre, National Oil and Prima Gas among others. The institution said it would also seek to ease the pain of small business owners in Nairobi and Mombasa by oering as little as Sh2,000 in loans, to enable them pay for the single business licence. In its expansion plans it aims to open branches in Muranga, Nakuru, Meru, Kajiado, Eldoret, Kisumu, Kitengera, Nyeri, Kabarnet and Kisii.
Objective
OTHER DISCLOSURES 1 Non-performing loans and advances a) Gross non-performing loans and advances b) Interest in suspense c) Total non-performing loans and advances ( a - b ) d) Loan loss provisions e) Net non-performing loans and advances ( c - d ) f) Discounted value of securities g) Net non-performing loans exposure ( e - f ) 2 Insider loans and advances ( including off-balance sheet items) a) Directors, shareholders and associates b) Employees c) Total insider loans, advances and other facilities 3 Off-balance sheet items a) Letters of credit , guarantees , acceptances b) Other contingent liabilities c) Total contingent liabilities 4 Capital strength a) Core capital b) Minimum Statutory Capital c) Excess ( a-b) d) Supplementary capital e) Total capital ( a + d ) f) Total risk weighted assets g) Core capital / total deposit liabilities h) Minimum Statutory Ratio i) Excess (g- h) j ) Core capital / total risk weighted assets k) Minimum Statutory Ratio l) Excess ( j - k) m ) Total capital / total risk weighted assets n) Minimum Statutory Ratio o) Excess ( m - n ) 5 Liquidity a) Liquidity Ratio b) Minimum Statutory Ratio c) Excess ( a - b ) MESSAGE FROM DIRECTORS
0 0 0 0 0 0 0 14,500 20,193 34,693 423,840 109,010 532,850 1,085,824 500,000 585,824 34,500 1,120,324 5,194,323 21.40% 8.00% 13.40% 20.90% 8.00% 12.90% 21.60% 12.00% 9.60% 24.20% 20.00% 4.20%
0 0 0 0 0 0 0 12,964 27,010 39,974 824,879 61,654 886,533 1,234,948 700,000 534,948 34,500 1,269,448 5,772,373 20.30% 8.00% 12.30% 21.40% 8.00% 13.40% 22.00% 12.00% 10.00% 36.00% 20.00% 16.00%
0 0 0 0 0 0 0 12,996 23,046 36,042 1,423,095 63,782 1,486,877 1,273,867 700,000 573,867 34,500 1,308,367 6,436,257 18.30% 8.00% 10.30% 19.80% 8.00% 11.80% 20.30% 12.00% 8.30% 46.80% 20.00% 26.80%
The above statement of financial position; statement of comprehensive income and other disclosures are extracts from the financial records of the institution. SIGNED KANJI D PATTNI CHAIRMAN YOGESH K PATTNI MANAGING DIRECTOR
28 | Business
NAIROBI SECURITIES EXCHANGE

Last 12 Mths High Low Security Yesterday Prices Prev deal Shares traded
58.00 19.00 90.00 63.00 135.00 90.00 400.00 290.00 21.00 13.00 7.40 15.05 315.00 130.00
Agricultural
Eaagads Ord 1.25 Kakuzi Ord.5.00 Kapchorua Tea Co. Ord 5.00 Limuru Tea Co. Ord 20.00 Rea Vipingo Plantations Ord 5.00 Sasini Ltd Ord 1.00 Williamson Tea Kenya Ord 5.00
29.00 81.00 121.00 15.50 11.20 260.00
29.00 81.00 118..00 400.00 16.00 11.45 255.00
100 200 3,100 10,100 27,800 900
155.00 89.00 330.00 166.00 155.00 85.00 217.00 148.00 1.35 3.05 10.20 4.40 8.20 12.00
Manufacturing & Allied
A.Baumann & Co. Ord 5.00 B.O.C Kenya Ord 5.00 BAT Kenya Ltd Ord 10.00 Carbacid Investments Ord 5.00 East African Breweries Ord 2.00 Eveready EA Ord 1.00 Kenya Orchards Ord 5.00 Mumias Sugar Co. Ord 2.00 Unga Group Ord 5.00
115.00 326.00 106.00 212.00 1.60 5.75 10.50
11.10 107.00 325.00 100.00 216.00 1.70 3.00 5.80 10.60
UNIT TRUSTS
600 3,300 100 709,700 23,400 1,771,900 14,700 Money Market Funds African Alliance Kenya Shilling Fund Old Mutual Money Market Fund British-American Money Market Fund Stanbic Money Market Fund CBA Market Fund CIC Money Market Fund Amana Money Market Fund Suntra Money Market Fund Zimele Money Market Fund ICEA Money Market Fund Madison Asset Money Market Fund African Alliance Fixed Income Fund CIC Fixed Income Fund Stanbic Fixed Income Fund B1 Stanbic Fixed Income Fund A Standard Investment Income Fund Standard Investment Equity Growth Fund African Alliance Kenya Equity Fund ICEA Equity Fund British-American Equity Fund CBA Equity Fund CIC Equity Fund Dyer and Blair Equity Fund Old Mutual Equity Fund Stanbic Equity Fund Suntra Equity Fund Madison Asset Equity Fund African Alliance Managed Fund British-American Managed Retirement Fund Amana Growth Fund ICEA Growth Fund Amana Balanced Fund British-American Balanced Fund CIC Balanced Fund Old Mutual Balanced Fund/Toboa Suntra Balanced Fund Madison Asset Balanced Fund Zimele Balanced Fund CFC Simba Fund Old Mutual East Africa Fund British American Bond Plus Fund Dyer and Blair Bond Fund ICEA Bond Fund Old Mutual Bond Fund Daily Yield Eective Annual Rate Kenya Shilling 11.95% 12.63% Kenya Shilling 13.00% 13.80% Kenya Shilling 12.41% 13.21% Kenya Shilling 11.30% 11.90% 13.12% 14.02% Kenya Shilling Kenya Shilling 18.00% 19.56% Kenya Shilling 18.40% 22.26% Kenya Shilling 15.03% 16.22% Kenya Shilling 9.0% 9.31% Kenya Shilling 10.74% 11.34% Kenya Shilling 18.08% 19.65% Kenya Shilling 10.54 10.20 Kenya Shilling 10.27 10.54 Kenya Shilling 101.85 101.85 Kenya Shilling 101.21 101.21 Kenya Shilling 87.73 88.24 Kenya Shilling 62.94 63.97 Kenya Shilling 115.57 108.53 82.90 87.26 Kenya Shilling Kenya Shilling 132.46 141.03 Kenya Shilling 109.02 114.76 Kenya Shilling 11.00 11.59 Kenya Shilling 125.49 132.10 Kenya Shilling 252.43 266.42 Kenya Shilling 105.46 110.30 Kenya Shilling 93.07 97.97 Kenya Shilling 59.10 62.21 Kenya Shilling 16.75 15.77 Kenya Shilling 111.91 115.18 Kenya Shilling 84.57 89.02 Kenya Shilling 97.06 102.16 Kenya Shilling 86.98 90.60 Kenya Shilling 147.30 156.43 Kenya Shilling 10.74 11.25 Kenya Shilling 119.10 125.37 Kenya Shilling 85.97 90.50 Kenya Shilling 70.54 73.86 Kenya Shilling 4.06 4.18 108.50 114.21 Kenya Shilling Kenya Shilling 115.77 121.22 Kenya Shilling 154.60 157.75 Kenya Shilling 114.08 116.41 94.60 95.56 Kenya Shilling Kenya Shilling 91.64 93.52
68.00 15.00 19.00 8.00
Automobiles & Accessories

19.50 9.25 11.40 3.55 Car & General (K) Ord 5.00 CMC Holdings Ord 0.50 Marshalls (E.A.) Ord 5.00 Sameer Africa Ord 5.00
4.45
29.00 13.50 12.60 4.55
14.90 3.50 AccessKenya Group Ord 1.00 4.80 4.75 2.70 Safaricom Ltd Ord. 0.05 3.50 3.45 4.85 NSE All Share Index(NASI)-(1 Jan 2008=100 Down 0.07 points to close at 78.50 NSE 20 Share Index Down 11.97 points to close at 3599.13 Equity Turnover Close sh473,840,291 Previous sh513,404,625
Telecommunication & Technology
17,000 11,019,000
10,700
BANK RATES
Euro BANK ABC Barclays Co-op Equity NBK KCB CBA buy sell buy sell buy sell buy sell buy sell buy sell buy sell buy sell buy sell buy sell buy sell 108.18 108.48 107.74 108.56 109.36 109.65 107.91 108.54 108.10 108.29 108.55 108.80 108.24 108.52 109.42 109.68 108.15 108.31 109.30 109.40 109.35 109.80
Banking
18.00 84.00 160.00 30.25 30.00 27.00 48.00 54.00 281.00 21.25 10.40 38.00 70.00 15.00 12.00 14.75 16.00 22.50 153.00 9.60 Barclays Bank Ord 0.50 CFC Stanbic Holdings Ord.5.00 Diamond Trust Bank Ord 4.00 Equity Bank Ord 0.50 Housing Finance Co Ord 5.00 KCB Ord 1.00 NBK Ord 5.00 NIC Bank Ord 5.00 StandardChartered Ord 5.00 Co-op Bank of Kenya Ord 1.00 13.00 41.50 98.50 20.75 15.10 23.75 19.55 30.00 168.00 13.95 12.95 41.00 97.50 20.75 14.90 24.00 19.35 30.00 168.00 13.90 630,000 61,900 128,600 6,784,800 46,100 702,000 11,200 10,300 3,400 389,400
$ 82.20 82.40 83.05 83.55 82.65 82.85 82.75 83.05 83.20 83.35 83.20 83.40 83.20 83.40 83.20 83.40 83.20 83.30 83.20 83.40 83.20 83.40
128.60 128.96 133.85 134.82 131.18 131.52 129.44 130.24 134.15 134.36 134.50 134.85 134.28 134.64 134.70 135.03 134.23 134.42 134.60 134.80 134.60 135.15
C$ 82.98 83.16 83.18 83.85 83.62 83.36 83.33 83.80 84.39 83.36 83.70 83.95 82.69 83.70 84.21 84.41 83.43 83.58 84.65 84.75 84.20 84.60
SF 89.48 90.00 89.67 90.41 90.63 90.86 89.07 89.69 89.95 90.16 90.35 90.60 90.09 90.33 91.08 91.30 90.02 90.16 90.95 91.10 90.90 91.35
IR 1.64 1.65 1.57 1.58 1.64 1.64 1.55 1.56 1.57 1.57 1.56 1.57 1.54 1.55 1.55 1.56 1.55 1.56 1.56 1.57
JY 99.82 100.18 104.01 104.90 99.05 99.30 99.89 99.46 104.18 104.38 104.05 104.35 104.28 104.56 103.75 104.00 104.26 104.40 103.55 103.65 103.90 104.20
ZR 10.88 10.97 10.53 10.62 10.78 11.10 10.80 10.84 10.57 10.60 10.60 10.70 10.57 10.63 10.77 10.79 10.57 10.60 10.75 10.80 10.65 10.95
Commercial & Services

9.00 44.00 190.00 68.00 46.50 69.50 15.90 3.50 12.55 130.00 35.00 21.00 42.00 6.50 Express Ord 5.00 Hutchings Biemer Ord 5.00 Kenya Airways Ord 5.00 Nation Media Group Ord. 2.50 ScanGroup Ord. 1.00 Standard Group Ord 5.00 TPS EA (Serena) Ord 1.00 Uchumi Supermarket Ord 5.00 3.80 14.60 169.00 52.00 24.00 46.00 14.90 3.85 20.25 14.75 168.00 53.00 24.00 46.00 14.60 600 171,900 6,400 351,600 100 200 844,100
CFC Stanbic GulfAfrican FCB Prime
196.00 207.00 35.25 21.50 119.00
Construction & Allied

101.00 125.00 19.00 10.00 51.00
Athi River Mining Ord 5.00 BamburiCement Ord 5.00 Crown Berger Ord 5.00 E.A.Cables Ord 0.50 E.A.Portland Cement Ord 5.00
188.00 146.00 27.25 10.75 60.00
185.00 146.00 27.25 11.05 60.00
2,800 13,000 3,900 19,100 200
CBK RATES
1 US Dollar 1 Sterling Pound 1 Euro 1 South African Rand Ksh/Ush 1 Ksh/Tsh 1 Ksh/Rwanda Franc 1 Ksh/Burundi Franc 1 UAE Dirham 1 Canadian Dollar 1 Swiss Franc 100 Japanese Yen 1 Swedish Kroner 1 Norwegian Kroner 1 Danish Kroner 1 Indian Rupee 1 Hong Kong Dollar 1 Singapore Dollar 1 Saudi Riyal 1 Chinese Yuan 1 Australian Dollar Mean 83.2703 134.2563 108.1710 10.5687 29.5425 19.0225 7.2356 16.4525 22.6709 83.4974 90.1073 104.3115 12.1358 14.2682 14.5411 1.5599 10.7268 66.7177 22.2036 13.1990 85.4251 Buy 83.1911 134.1092 108.0436 10.5435 29.3943 18.9443 7.1626 16.3768 22.6487 83.4018 90.0038 104.1605 12.1033 14.2455 14.5246 1.5584 10.7162 66.6328 22.1819 13.1859 85.3188 Sell 83.3494 134.4033 108.2983 10.5939 29.6907 19.1006 7.3086 16.5282 22.6931 83.5930 90.2108 104.4626 12.1683 14.2908 14.5576 1.5613 10.7373 66.8025 22.2253 13.2120 85.5314
17.50 12.30 25.00 30.00
Energy & Petroleum

6.80 8.90 13.75 13.50 KenGen Ord 2.50 KenolKobil Ltd Ord 0.05 KP&LC Ord 2.50 Total Kenya Ord 5.00
8.65 12.50 15.40 15.00
8.75 12.55 15.45 15.90
218,500 121,100 1,579,100, 6,700
9.00 3.80 20.00 5.50 225.00 145.00 6.80 11.70 55.00 18.00
Insurance
British American Investments Co.0.10 CFC Insurance Holdings Ord.1.00 Jubilee Holdings Ord 5.00 Kenya Re Corporation Ord 2.50 Pan Africa Insurance Ord 5.00
5.35 8.00 180.00 10.50 29.00
5.30 7.70 182.00 10.10 28.50
94,600 700 3,500 1,515,800 500
Algerian Dinar Bahrani Dinar Djibouti Franc Egyptian Pound Jordanian Dinar Kuwait Dinar Lebanese Pound Libyan Dinar Omani Riyal Qatar Riyal Saudi Riyal Syrian Pound Tunisian Dinar UAE Dirham
ARAB CURRENCY/$
73.70 0.377 175.85 6.0353 0.7075 0.27774 1501 1.2406 0.3850 3.6405 3.75 57.3 1.5069 3.6725
Investment
24.25 10.95 280.00 90.00 6.00 3.05 60.00 20.00 Centum Investment Co Ord 0.50 City Trust Ord 5.00 Olympia Capital Holdings Ord 5.00 Trans-Century Ord 0.50 15.15 3.50 15.40 221.00 3.80 24.50 38,700 4,700
Currencies are quoted against the US Dollar
MARKET UPDATES
FOR NATIONmobile ALERTS ON YOUR CELLPHONE, SMS THE STOCK, E.G. STOCKS KENGEN, SAFARICOM TO 6667 Each alert costs Sh10
Business News 29
MOVEMENT | Awareness levels
Immigration laws aecting labour in EAC

Job-seekers and employers nd it dicult to navigate long proceedures
BY MUTHOKI MUMO
mumumo@ke.nationmedia.com
Procurement agency starts streamlining rules

Procurement laws are set for change, following the start of a process by the Public Procurement Oversight Authority (PPOA) to streamline them. The authority has invited stakeholders to give their views on the laws, which will form the basis for discussions and possible change. PPOA is mandated to convene consultative fora with stakeholders from the public and private sector who have an interest in the proper functioning of public procurement and disposal, pursuant of section 134 of the Public Procurement and Disposal Act 2005. PPOA now invites comments from all interested stakeholders. Experts have often complained that public procurement is lengthened by bureaucracy, which worsens when a disputes arises and ends up in court. Procurement guidelines are complicated and full of contradictions which have sometimes been used by shady contractors to vary project requirements and escalate costs, said economist Gitau Githogo. The submissions from stakeholders will determine the agenda for the 5th annual national public procurement and disposal stakeholders forum to be held on May 31. Those invited include representatives from government departments, districts, constituencies, local authorities, state corporations, public schools, potential tenders, suppliers, contractors and service providers among others
ack of awareness on immigration procedures is hindering free movement of labour in the East African Community. According to a report on the business climate in the region, businesses have low levels of awareness of immigration rules in their home states and other member countries. The Business Climate Index Report 2011 is based on a survey carried out on 540 businesses, regulatory authorities and transportation workers in the region by the East African Business Council (EABC) last year. It indicates that there is little knowledge on procedures and required documentation for passport and work permit acquisition in the community. Many citizens have not acquired the necessary documents to facilitate travel within the region, reads the report. Businesses in Kenya and Rwanda had the lowest awareness levels of immigration requirements in their own country and other EAC countries.
On average, only 12 per cent of the total respondents were aware of the requirements in their neighbouring East African countries. About 38 per cent indicated that bribes were always or sometimes expected to get immigration documents. The situation was particularly dire in Uganda with 88 per cent of all businesses believing that they needed to pay a bribe to acquire immigration documents. Further, 75 per cent of Ugandans said corruption in immigration was getting worse. 63 per cent of Burundians and 18 per cent of Kenyans noted that bribery was lessening. The EAC states adopted the Common Market Protocol, which enshrines the rights to free movement of labour and goods, in 2010. However, procedures are still lengthy as member states have failed to review the regulations involved in immigration.
Trans-National Plaza, 2nd Floor, Mama Ngina Street P.O Box 61599-00200 Nairobi - Kenya. Tel: 020-312121 Fax:020-340022 E-mail : info@amaco.co.ke Website: www.amaco.co.ke
AFRICA MERCHANT ASSURANCE COMPANY LTD
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2011

STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2011
2011 Kshs CAPITAL EMPLOYED Share capital Retained earnings TOTAL CAPITAL AND RESERVES ASSETS Property and equipment Intangible assets Deferred Tax asset Tax recoverable Investment property Receivables arising out of reinsurance arrangements 112,097,009 559,560 5,564,789 3,075,392 335,750,001 122,537,624 409,061,505 349,018,835 37,539,942 750,136,931 3,657,282 6,285,901 2,135,284,771 110,495,023 474,372 12,787,333 335,750,001 300,108,689 233,736,128 230,938,757 28,993,361 679,103,953 4,891,574 155,231,073 2,092,510,264 500,000,000 102,817,517 602,817,517 440,000,000 265,530,773 705,530,773 2010 Kshs INCOME Gross written Premium Outward Reinsurance Net Written Premium Gross earned Premium Net Earned Premium Investment income Commission earned Total Income OUTGO Claims & Policyholder benefits Commissions payable Operating and other expenses Total Outgo Profit before Tax Income Tax expense 631,404,629 143,083,109 572,423,078 1,346,910,816 81,923,724 (39,336,471) 42,587,253 704,213,417 163,028,718 529,429,898 1,396,672,033 101,467,816 (20,013,689) 81,454,127
STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31ST DECEMBER 2011
2011 Kshs. 1,770,765,095 439,023,334 1,331,741,761 1,661,830,148 1,222,806,814 83,017,876 123,009,850 1,428,834,540 2010 Kshs. 1,736,717,608 433,071,289 1,303,646,319 1,735,617,300 1,302,546,011 76,310,007 119,283,831 1,498,139,849
Many citizens have not acquired the necessary documents to facilitate travel within the region
EABC report
Receivables arising out of direct insurance arrangements Reinsurance share of insurance liabilities Other receivables Financial Instruments Held to maturity financiaL assets Available for Sale financial assets Cash and Bank balances Total assets LIABILITIES Insurance contract liabilities Provisions for unearned premium Deferred Income tax Creditors arising from reinsurance arrangements Dividends payable Creditors and other payables Total liabilities Net Assets Key Ratios a) Capital adequacy b) Solvency ratio C)Claim ratio d)Expense ratio
Africas new World Bank boss takes over

BY NATION REPORTER
A former World Bank Kenya country director, Makhtar Diop, assumed oce as the banks vice president for Africa yesterday. Mr Diop replaces Nigerian national Obiageli Ezekwesili, whose tenure at the position came to a close this month. Ms Ezekwesili was appointed to head the banks operations in Africa in 2007 after serving as minister of Education within the government of Nigeria. Mr Diop has served the World Bank in several senior positions since he joined it in 2001. These include serving as country director for Kenya, Eritrea and Somalia, as well as director of infrastructure and director of strategy and operations in the banks Latin America and Caribbean regions. It is an honour to return to Africa as vice president at a time when the continent is on the rise with strong growth led by private investment and a new sense of optimism. With world class development knowledge and innovative nancing, we can support Africas momentum and ensure that all Africans, especially the poor, share in the continents economic and social transformation, he said. He comes into the oce at a time when the bank is being criticised by some for not appealing to poor nations. African governments and the world at large will be watching his strategy towards completing an economic roadmap that his predecessor is said to have begun during her tenure.
Profit for the year after tax OTHER COMPREHENSIVE INCOME
871,464,176 372,732,249 154,879,098 88,647,102 44,744,628 1,532,467,253 602,817,518
833,922,379 202,035,498 319,604,753 31,416,861 1,386,979,491 705,530,773
Fair value gain/(loss) on available for sale assets, Net of Tax Total other comprehensive income for the period Total Profit & other comprehensive income for the year
(1,234,292)
(733,620)
(1,234,292) 41,352,961
(733,620) 80,720,507
The above financial statements are extracts of financial statements which were audited by Ernst & Young, Certified Public Accountants and received an unqualified opinion. The financial statements were approved by the Board of Directors on 15th April 2012 and signed on its behalf by: Silas Simatwo Linus Kipn`getich Kennedy Abincha Chairman Director Principal Officer
167% 302% 36% 29%
147% 475% 41% 29%
Our Branches
Eco Bank Chambers 5th floor, Tom Mboya Afya Centre, Mezzanine 3, Tom Mboya Mombasa: Canon Tower II, 2nd Floor Eldoret: KVDA Plaza, 3rd Floor Nakuru: Mache Plaza, 1st Floor Meru: Twin Plaza, Suite 9 Nairobi: Kisumu: Nyahururu: Kitale: Kisii: Bungoma: Nyeri: Re-insurance Plaza, 5th Floor Olympic House 1st floor Victor House,2nd floor Uhuru Plaza, 2nd floor Moghee Plaza, Moi Avenue, 2nd floor NDCU Building, Gakere Road Kericho: Malindi: Kapsabet: Migori: Thika: Isan Building, 3rd Floor Malindi complex, Room 17 KCB Building, 1st floor K N Bldg, 2nd Floor Thika Arcade, 2nd floor
Service Beyond the Obvious
30 | Business News
OUTLOOK | Economic concerns

OFFICE OF THE DEAN, GRADUATE SCHOOL
APPLICATIONS FOR POSTGRADUATE PROGRAMMES ON OPEN, DISTANCE LEARNING MODE OF STUDY JULY 2012 INTAKE
Applications are invited from qualified applicants for the following programmes which will be offered from various Open Learning Centres, beginning July 2012. The entry requirements for each Programme are as shown below: Programme Department of Educational Psychology Master of Education in: Guidance and Counselling Department of Educational Communication and Technology Postgraduate Diploma in Education (PGDE) Department of Early Childhood Studies Master of Education in Early Childhood Education Department of Library Studies - Master of Library and Information Sciences Minimum Entry Requirements SCHOOL OF EDUCATION Bachelor of Education Degree in related field, with at least Second Class Honours (Upper Division) or equivalent from Kenyatta University or any recognized institution. Those with Bachelor of Education Second Class (Lower Division) or its equivalent with at least two years of relevant work experience will be considered. Fees (in Kshs.) Tuition: East Africans: 90,000/= p.a. Non East Africans: 137,000/= p.a. Statutory Fees: 22,900/= p.a.
KENYATTA UNIVERSITY
World stocks fall on Greek, French votes

Turning against austerity renews uncertainty for eurozone debt
PARIS, MONDAY
orld stocks fell, the euro wavered and French borrowing rates rose on Monday on renewed uncertainties for eurozone debt policy after voters in Greece and France turned against austerity. Adding to the bearish atmosphere was weak jobs data from the United States at the end of last week, which had fuelled concerns about recovery in the US economy and pushed Wall Street shares down sharply. The Paris stock exchanges CAC 40 index fell 1.52 per cent, amid concerns that European Union voters are hardening their opposition to decit-cutting austerity programmes but later recovered to a 1.17 per cent. Stocks in Athens plunged 8.3 per cent after Greeces mainstream parties fell short of a governing majority, putting hard won agreements to save the countrys economy and
Bachelors Degree or its equivalent from Kenyatta University or any other Tuition: East Africans: 90,000/= p.a. recognized institution. Applicants should be holders of a Bachelors Non East Africans: 137,000/= p.a. Degree with two (2) teaching subjects. Statutory Fees: 22,900/= p.a. Bachelor of Education Degree in related field, with at least Second Class Tuition: Honours (Upper Division) or equivalent from Kenyatta University or any East Africans: 90,000/= p.a. recognized institution. Those with Bachelor of Education Degree Second Non East Africans: 137,000/= p.a. Class (Lower Division) or its equivalent with at least two years of relevant Statutory Fees: 22,900/= p.a. work experience will be considered. Bachelor of Education Degree in related field, with at least Second Class Honours (Upper Division) or equivalent from Kenyatta University or any recognized institution. Those with Bachelor of Education Degree Second Class Honours (Lower Division) or its equivalent with at least two years of relevant work experience will be considered. SCHOOL OF BUSINESS Bachelors Degree with at least Second Honours (Upper Division) or equivalent from Kenyatta University or any other recognized university. Those with Second Class (Lower Division) and at least two years relevant work experience may be considered. Tuition: East Africans: 90,000/= p.a. Non East Africans: 137,000/= p.a. Statutory Fees: 22,900/= p.a.
Department of Business Administration Master of Business Administration (MBA) with areas of Specialization as: Human Resource Management, Entrepreneurship, Marketing, Finance, Strategic Management, Management Information Systems, Project Management. Department of Hospitality
Tuition: East Africans: 90,000/= p.a. Non East Africans: 137,000/= p.a. Statutory Fees: 22,900/= p.a.
SCHOOL OF HOSPITALITY AND TOURISM Bachelor of Science with at least Second Class Honours (Upper Division) Tuition: in Hotel and Tourism Management or related field from a recognized East Africans: 90,000/= p.a. Master of Science in Hospitality and institution. Non East Africans: 137,000/= p.a. Tourism Management Those with Second Class (Lower Division) and at least three years Statutory Fees: 22,900/= p.a. relevant work experience will be considered. Department of Tourism Bachelor of Science with at least Second Class Honours (Upper Division) Tuition: Master of Science in International in Hotel and Tourism Management or related field from a recognized East Africans: 90,000/= p.a. Non East Africans: 137,000/= p.a. Tourism Management institution. Statutory Fees: 22,900/= p.a. Those with Second Class (Lower Division) and at least three years relevant work experience will be considered. SCHOOL OF AGRICULTURE AND ENTERPRISE DEVELOPMENT Department of Agricultural Resource Bachelor of Science of at least Second Class Honours (Upper Division) or Tuition: Management equivalent in Agriculture, Dry land Agriculture & Enterprise Development, East Africans: 100,000/= p.a. Non East Africans: 137,000/= p.a. Agricultural Engineering, Agricultural Resource Management, Statutory Fees: 22,900/= p.a. Master of Science in Land and Water Horticulture, Range Management, Agribusiness, Environmental Science Management or any other equivalent qualification from a recognized institution. Those with Second Class (Lower Division) and at least two years relevant work experience will be considered. Department of Agricultural Science Bachelors Degree with at least Upper Second Class Honours in Tuition: East Africans: 100,000/= p.a. and Technology Agriculture or other related fields from a recognized institution. Non East Africans: 137,000/= p.a. Master of Science in: Bachelors Degree with Second Class (Lower Division) in Agriculture or Agronomy(Crop Production Option) other related areas with at least two years relevant research experience or Statutory Fees: 22,900/= p.a. Agronomy(Crop Protection Option) a Post-graduate Diploma will be considered. Plant Breeding
8.3pc
The rate at which stocks in Athens plunged following election results
membership of the eurozone back into question. In Frankfurt the DAX 30 slid 1.35 per cent while Madrids IBEX 35 index lost 0.99 per cent and Milan fell 0.57 per cent. Londons exchange was closed for a holiday. In Asia, stocks led the trend with Tokyo diving 2.78 per cent and Hong Kong down 2.61 per cent. The euro fell to $1.2954, the lowest level since late January, but then rallied to $1.3006 at 0900 GMT, still below $1.3082 in New York late on Friday. The interest rate on Frances benchmark 10-year bonds rose and the difference between interest rates on French and German debt, a critical measure of tension in the eurozone, widened slightly. There was no panic but the rising yield came amid concerns that Hollandes victory, only the second by a Socialist since the Fifth Republic was formed in 1958, could trigger a run on French debt and derail Paris decit-cutting plan. After opening down slightly on the Paris secondary market, yields recovered to Fridays closing rate of 2.809 per cent at around 0900 GMT. The spread between French and German bonds widened, as the German bund fell to historic low levels, suggesting a ight to safety by investors from at risk European markets to Berlins economic powerhouse. (AFP)
The Open Learning programmes are designed to allow students to study independently with minimal tutorial support. The programmes are co-ordinated in the following regional Centres; Nairobi, Nyeri, Mombasa, Nakuru, Embu, Kisumu, Kakamega, Garissa and Marsabit. This mode of study offers alternatives to qualified applicants who are unable to enroll in Full-time residence programmes. DURATION AND PATTERN OF MASTERS DEGREE COURSES (i) The Masters Degree Courses shall extend over a minimum period of eighteen (18) months. (ii) The courses will be offered by Coursework, Examination and Thesis (or Project where stated) DURATION AND PATTERN OF POSTGRADUATE DIPLOMA COURSES The Postgraduate Diploma courses shall extend over a minimum period of one (1) academic year, and will be offered by Coursework and Examination. (i) MODE OF APPLICATION Application forms can be obtained from Kenyatta University, Admissions Block, Office No. 12 or at the Regional Centres based in Nairobi, Embu, Nyeri, Mombasa, Nakuru, Kisumu, Garissa, Marsabit and Kakamega or be downloaded from our website. Applicants shall pay non-refundable processing fee of kshs.2,000/= for East Africans and Kshs.4,000/= for non-East Africans through Bank deposit into any of the following bank accounts: Standard Chartered Bank Co-operative Bank of Kenya National Bank of Kenya Equity Bank Limited (ii) Account No. 010-201-881-4400 Account No. 011-296-246-1400 Account No. 010-035-915-0801 Account No. 0180290518859
Malawi devalues its currency by 34pc

BLANTYRE, MONDAY
Malawi devalued its currency by nearly 34 per cent against the US dollar Monday as it oated the local kwacha, bowing to a key demand of the International Monetary Fund to x the troubled economy. The central banks notice of ocial exchange rates put one US dollar at 250 kwacha, compared to 166 kwacha on Friday, a 33.598 per cent value drop. Following this devaluation, the kwacha is now fully liberalised, the Reserve Bank of Malawi said in a statement. On the black market, the US dollar has sold at more than 300 kwacha, a disparity that drove foreign currency out of the banking system and into the hands of informal dealers. At 250 kwacha per dollar the exchange rate is well adjusted, as the black market is certainly under-devalued, the central bank said The late president Bingu wa Mutharika had xed the exchange rate in 2005. Since then he had steadfastly refused to make a major devaluation, which he argued would hurt the poor. The IMF has for months called for a devaluation to end a shortage of foreign currency that has left Malawi unable to import enough fuel to keep the nation running. After Mutharikas sudden death last month, the new President Joyce Banda has moved quickly to restore relations with international lenders and donors. Several key donors suspended aid to Malawi, citing concerns about growing authoritarian tendencies in Mutharikas government. (AFP)
Duly completed forms should be returned to the Dean, Graduate School, Kenyatta University P.O. Box 43844 00100, NAIROBI, Kenya on or before May 24, 2012. Copies of relevant professional and academic certificates and transcripts, Four (4) Ix1 passport size photos and original application fee receipt, MUST be attached to the application form. ENQUIRIES For further information please contact: The Dean, Graduate School, Kenyatta University, P.O. Box 43844 00100,NAIROBI Tel: 020 8710901/2/3 Extension: 57530 / 57243 Email: admissions-graduate@ku.ac.ke; Website: www.ku.ac.ke
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COUNTY NEWS
EDUCATION | Several academies have raised fees
RELIGIOUS LEADERS FIGHT REPORT ON GAY RIGHTS KNCHR has proposed legalising homosexuality and prostitution.
P.34
BRIEFLY
TAITA-TAVETA
Parents feel pinch of fare increases as schools reopen for second term
Matatu crews cash in on the rush, with some raising charges by more than Sh100
BY NATION TEAM
newsdesk@ke.nationmedia.com arents yesterday bore the brunt of increased fares as matatu operators countrywide cashed in on the reopening of schools. At the same time, they had to grapple with increased fees at some schools. Mrs Pheobe Ongesa, who was taking her son to Mudasa Academy in Western, said operators of matatus plying the route to the school had increased the fare from Sh250 to Sh350. Mrs Ongesa said the school had raised fees by Sh7,000 per term. Life is really getting more expensive. My son is only in Class Four and the fees is already increased. It is becoming hard for me to meet my expenses, said Mrs Ongesa. Schools within Kisumu Municipality yesterday recorded high attendance. But parents complained against a Ministry of Education directive to extend the rst term by two weeks and reduce the April holidays from the traditional four weeks to two. They said the move would disorient their children. We do not even spend Easter with our children any more, said Mrs Mutali Ouma, whose child attends Kisumu Girls High School. Long queues extending outside banking halls were witnessed in various towns in North Rift as students and parents paid fees. There were also long queues at supermarkets and bookshops where parents bought various CAMPING
Body of headteacher found hanging in oce

A primary school headteacher in Mwatate District yesterday committed suicide in unclear circumstances after locking himself in his oce on the rst day of the second term. The body of Mr Peter Mwabili of Mwandala Primary School was found dangling from the roof by teachers who broke down the door to get access to his oce. Parents once locked Mr Mwabili out of the school as demanding his removal for poor 2011 Kenya Certicate of Primary Education examination results.
MOMBASA
Elders to meet over fall of spiritual tree

Kaya elders are set to meet to discuss the implications of the fall of a spiritual tree at Kinondo shrines. The 700-year old tree was brought down by heavy rains and strong winds last week. Mzee Abdalla Ali Mnyenze, chairman of Kaya Kinondo said the loss of the tree, which was used as a shrine by elders sacricing animals, would have untold consequences on the community. The elders will meet to also decide the number of animals to be sacriced and how to replace the tree.
items for their children who were going back to school. A transport crisis spoilt the day for students and teachers reporting for the second term in various schools. Matatu crew took advantage of the high demand for transport and raised their fares. A spot-check in the North Rift and parts of Western showed that most of the public service vehicles increased their charges by between Sh50 and Sh150 depending on the distance. Eleven-seater vehicles that have been charging Sh700 increased the fares to Sh800. The fare increases are seasonal. Its normal in business to adhere to the laws of supply and demand, which eventually aect fares, said Mr Kennedy Langat, a driver on the EldoretNairobi route. At the same time, more than
Supply and demand
2,000 pupils in Magarini District were yesterday unable to report to school due to floods after Sabaki river burst its banks. The floods have left many families homeless and roads impassable, making it dicult for pupils to resume classes. Speaking to journalists in Malindi, Magarini district education ocer Steven Abere said: We are working hard to ensure the aected children can access education, even if it means carrying out emergency measures of teaching in areas where the displaced people are camping. He said four primary schools could not be opened as the roads leading to the institutions were impassable. In Nakuru town, traders dealing with school items reported roaring business as parents rushed for last-minute shopping before their children reported for the second term. Long queues were witnessed
at several uniform shops and supermarkets. Matatu stages were packed with students and parents heading to dierent schools. Its our peak season. I hope there will be no crackdowns on matatus, said Mr George Kamau, a matatu operator. Schools in flood-prone Budalangi in Bunyala District reopened without hitches. But education officials remained on the alert following reports that water levels in River Nzoia had risen and could result in ooding in some areas. Western provincial director of education Kenneth Misoi said: We are monitoring the situation in Budalangi and other parts of the province in case learning in schools is disrupted by ooding and the bad weather conditions. In Nyanza, hundreds of families who have been camping in schools after they were displaced by oods have been forced to move out. This followed reopening of schools yesterday. Most schools in the Nyando region, Kisumu County, had been accommodating ood victims. However, most children in these areas failed to report to school after falling sick due to the harsh eects of the heavy rains. They are suering from malaria and fever. Reported by Lilian Ochieng, Dennis Odunga, Sandra Chao, Rachel Kibui, Benson Amadala and Brian Yonga
Parents queue at a bank in Kakamega to pay fees as schools reopened yesterday for the second term.
ISAAC WALE | NATION
NAIROBI
Countries to get land in Lamu port deal

The governments of South Sudan and Ethiopia will be offered land as part of a deal to help fast track the construction of the Lamu Port. Transport permanent secretary Cyrus Njiru yesterday told the Parliamentary Committee on Transport, Public Works and Housing that the two governments had asked for the land in Lamu to build infrastructure like godowns to facilitate trade among them. Designs for the three berths are complete and bids for the project will be advertised soon.
Monitor the situation
MIGORI
Flood victims moved to kitchen as learning starts

More than 130 ood victims have been forced to live in mud-thatch school kitchen. This follows reopening of St Alloys Primary School in Nyakach District, where the families have been camping after their homes were swept away by oods three weeks ago. We have been forced to live in this kitchen as we do not want to interfere with learning in the school, said Mrs Rosemary Awino, one of the victims.
Workers may quit union in insurance row

Civil servants in Migori have threatened to withdraw from their union if it does not address the raging controversy over the workers new medical scheme. The workers want the Union of Kenya Civil Servants (UKCS) to block implementation of the scheme until the National Hospital Insurance Fund puts its house in order. The unions Migori executive secretary, Dr Alex Otieno, said they should also be allowed to choose hospitals from which to seek medical services.
Flood victims in a kitchen at St Alloys Primary School in Nyakach District yesterday.
TOM OTIENO | NATION

DAILY NATION May 08

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DAILY NATION May 08

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PM and Mudavadi camps trade graft claims

Campaign secretariats threaten to reveal scandals in fresh supremacy wars P. 6>

Nairobi | Tuesday, May 8, 2012

KSh50/00 (TSh1,000/00 : USh1,500/00 : RFr500/00) www.nation.co.ke

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World P. 19-25 Business P. 26-30 County P. 32-35 Sport P. 55-59

TEAM SENT PACKING

Fresh hope for oil billions as Tullow nds more deposits

Dr Francis Kimani: Director of Medical Services

Mr Samwel Karicho: Alt. member to P.S. Director of Personnel Management

Mr David Konchella: Non-Governmental Organisations

Mr Julius Mutua: Alt. Member to P.S. Treasury

Dr Judith Bwonya: Alt. Member to P.S. Ministry of Medical Services

Ms Jacqueline A. Mugo: Federation of Kenya Employers

Dr Andrew J. Suleh: Kenya Medical Association

Mr Elijah Adui Onyango: Kenya National Farmers Union

Mr Wilson Sossion: Vice chairman

Mr Richard Kerich: CEO

Prof Richard O. Muga: Board chairman

DAILY NATION Tuesday May 8, 2012

GUIDE TO YOUR DAY

Change of guard, and style

JOSEPH KANYI | NATION

DAILY NATION Tuesday May 8, 2012

ENTERTAINMENT | Show launched on Sunday night in Johannesburg, South Africa

Prezzo leads Kenyans to Big Brother Africa

Contestants in reality TV show

DAILY NATION Tuesday May 8, 2012

Fire razes insurers generator room

JENNIFER MUIRURI | NATION

MOMBASA Jomo Kenyatta Avenue 020 8099006/7 0713 233383 rivamacmsa@wananchi.com

NAKURU George Morara Avenue 051 2211985/6 0720 230233 rivamac@wananchi.com

KISUMU Kampala Street 0703 744141 057-2020300/400 Email: kisumu@rvmachinery.com

DAILY NATION Tuesday May 8, 2012

Five more drown in oods havoc

Row looms as police board vetting ends

JOSEPH KANYI | NATION

Died of heart attack

Appeals by sacked judges start May 24

Grounds for review

DAILY NATION Tuesday May 8, 2012

Mudavadi and Raila ght dirty over poll

New city clerk ghts back with petition

University challenges legality of court ruling

STEPHEN MUNDIARI | NATION

Stop export of raw resources, says PM

Iteere demands Sonko statement on kill claim

Man killed in erce shootout with police

DAILY NATION Tuesday May 8, 2012

DAILY NATION Tuesday May 8, 2012

TAKING STOCK | Gatanga shines on use of funds

Sh380m CDF cash misused, says report

2.3bn 107m 98m

Total amount, in shillings, allocated to kitty

Amount, in shillings, allocated to Gatanga constituency

Amount, in shillings, used by Gatanga for projects

JAYNE NGARI | NATION

Council on the spot over funds

DAILY NATION Tuesday May 8, 2012