Aug 3rd 2015

Top News
Entrepreneurs urged to
learn from peers to grow
Page 2
Money & Markets
Life
Page 20
Page 27
KCB Group to hive off

mortgage unit again
Philosophies that can

help you achieve success
MONDAY, AUGUST 3, 2015
NO. 2152
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Ex-CMC boss opens battle

ove secet Jesey accounts
Martin Forster
says CMA had no
authority to hire
forensic auditors
and send them
in to probe rms
internal affairs
BY BRIAN WASUNA
Martin Forster, former CMC CEO. FILE
Consumes bea
the pain of steep
ise in living cost
Martin Forster, the former chief executive of motor dealer CMC, has launched
a fresh legal battle aiming to quash a
forensic report that accused him and
other senior managers of stealing and
funnelling millions of shillings to secret
Jersey bank accounts.
Mr Forster is challenging the Capital Markets Authoritys (CMA) decision to hire the South African law rm
Webber Wentzel to investigate CMCs
internal aairs.
He insists that the regulators powers are limited to appointing an auditor
to conduct a specic inquiry on rms
listed on the securities exchange.

The Webber Wentzel report accused
Mr Forster and former CMC chairman
Jeremiah Kiereini of illegally defrauding the motor dealer by colluding with
suppliers to inate invoices and skimming o the extra funds to deposit in
Jersey bank accounts.
The report said that more than 1.7
million (Sh261 million) had been funnelled to Jersey accounts by the time
Mr Foster left in 2011.
Mr Forster and Mr Kiereini were
subsequently disqualied from being
appointed as directors in rms listed
on the Nairobi Securities Exchange
FORSTER, Page 4
(NSE). In
Kenya rated top market

for dollar deals in region
The Kenyan market has one of the
most stable prices in eastern and
southern Africa with the dollar
value of items increasing by small
margins compared to peers in the
region. Page 6
Land sale and cost cutting

lift EABL prot to Sh9.6bn
The sale of land and cost-cutting
measures helped lift East Africa
Breweries Limiteds full-year prot
40 per cent to Sh9.6 billion, the
beer makers nancial statements
have showed. Page 7
Top-ve foreign funds see

returns on NSE equities fall
SUFFERING CONTINUES
ELECTRICITY (50KWH)
BRIEFING
PETROL (1 LITRE)
SIFTED MAIZE FLOUR (2KG)
The top-ve foreign mutual

funds investing in Kenya have
seen their returns decline by an
average of 11 per cent year-todate, a new report by consultancy
PricewaterhouseCoopers shows.
Page 19
BY KIARIE NJOROGE
Kenyans are paying up to 20 per cent more for basic

items like electricity and maize our following signicant price increases over the last four months.
Other essential items whose prices have been rising
include diesel, petrol, kerosene, sugar and meat, bringing many household budgets under pressure.
The increases come even before the market factors
in the full impact of the recent spike in interest rates
and the depreciating shilling.
Consumers in Nairobi may soon also have to dig
deeper into their pockets for the PRICES, Page 4
Pages 15-18
NEWS INDEPTH
Price changes March-June 2015 (Sh)

Item
March
June
Change (%)
Sifted maize our (2kg)
94.38
112.38
19.071837
Petrol (1 litre)
90.34
98.14
8.6340491
Diesel (1 litre)
Electricity (50KWh)
Kerosene (1 litre)
Branded sugar (2kg)
77.16
84.26
9.2016589
494.28
507.62
2.6988751
56.71
62.73
10.615412
230
250
SH 507.62
MAY: SH 494.28
JUNE:
8.6956522
SOURCE: KNBS
% CHANGE
2.6%
SH 98.14
MAY: SH 90.34
JUNE:
% CHANGE
8.6%
SH 112.38
MAY: SH 94.38
JUNE:
% CHANGE
19%
Failed Financial
Times bid shows Axel
Springer rm caught
between tradition
and ambition
Pages 12-13
BUSINESS DAILY | Monday August 3, 2015
TOP NEWS
Entepeneus uged to lean

fom pees to dive gowth
What is making news this week

the sale of 12 branches, booking a prot
of Sh600 million.
Week ahead
Monday, August 3, 2015
University of Nairobi set

to host innovation fair
SKILLS Consultant
The University of Nairobi is set to hold

the Innovation Week fair to showcase innovations by its staff and students.
The event will bring together government and private sector ofcials, development agencies and researchers to discuss capacity building and showcase innovation. Saul Singer, an American-Israel
journalist, is listed as one of the speakers
at the event as well as Mr Langdon Morris, a partner and co-founder of InnovationLab and US-based consultancy LLC.
says taking part in the

Top 100 competition
benets businesses
BY BOZO JENJE
Kenyan entrepreneurs have been urged

to show their mettle by benchmarking
against peers for the right market positioning that will help drive the next
phase of their growth.
Consulting rm KPMGs regional
senior manager for Marketing Knowledge and Communication Abijah
Kanene said such positioning can be
gained through participation in the Top
100 medium-sized companies competition that is currently receiving entries
from qualied rms.
Ms Kanene said participating in the
annual survey that ranks Kenyas fastest
growing companies would not only put
the medium rms under the rigour of
intensive peer to peer competition but
also open the doors to networking and
alliances that are critical to the growth
of every business.
The Top 100 medium-sized rms
initiative ranks companies with annual turnovers of between Sh70 million and Sh1 billion.
Participating rms must submit
three years of audited nancial records.
They must not be banks or saccos and
also not be listed on the Nairobi Securities Exchange (NSE).
Ms Kanene spoke at the Mombasa
Serena Hotel during the launch of this
years survey in the port city on Thursday evening.
Ivan De Souza, a Mombasa-based
entrepreneur who runs the Coast Industrial and Safety Supplies and was
on the Top 100 list last year, said par-
Jubilee bonus shares begin

trading at Nairobi bourse
Bonus shares issued by insurance group
Jubilee Holdings in March will begin
trading at the Nairobi Securities Exchange. The company declared a bonus
share issue of one-for-every-10 held, a
move that will see an allotment of 5.9
million shares and raise the volume of
its outstanding stocks to 65.8 million
units. The companys share closed trading Friday at Sh560.
The stock has avoided the bearish run
currently pushing down valuations in
the market.
Guests follow a presentation during the Top 100 mid-sized companies survey launch
at the Serena Beach Hotel in Mombasa last Thursday. WACHIRA MWANGI
ticipating in the survey had enabled his
company to re-invent and expand its
reach. Mr De Souza said that since his
company featured on the Top 100 list,
a number of nanciers and suppliers
had knocked on his door with attractive credit lines besides the numerous
networking opportunities in the subsequent forums.
Attract talent
Being recognised among the Top 100
companies has led various rms to associate and do business with us, Mr
De Souza said, adding that the peerage
had also seen the company employ best
management practices besides setting
up a pension and medical scheme for
his workers.
We can now attract talent and
skilled employees because we have a
structured way of motivating them to
grow, he said. Participation in the survey is voluntary and companies that are
not willing to complete the nancial
questionnaire still get a performance
report against their industry peers.
The Business Daily managing editor,

Ochieng Rapuro, urged companies to
take advantage of the media platform
that Nation Media Group oers them
to build their brands and interact with
larger constituencies.
Mr Rapuro said proper positioning of the media was the best way to
build brand equity besides marketing
products and services to a much larger
consumer base.
We have been in Uganda for ve
years, Tanzania for four years and
Rwanda for three years giving the
competition a truly regional outlook,
he said, adding that entrepreneurship
was the only way Kenya will manage
the twin tasks of building a modern
economy and creating the millions of
jobs needed to deal with mass unemployment among youths.
The survey will be conducted by Research Solutions Africa and the Top 100
companies will be declared at a gala
dinner in October. The survey will be
launched next month in Machakos
and Thika.
Institute of accountants
and ACCA to sign MoU
The Institute of Certied Public Accountants of Kenya (ICPAK) and the Association of Chartered Certied Accountants
(ACCA) are set to sign a memorandum of
understanding. The agreement will see
the two institutions enhance collaboration in policy, research and advocacy
aimed at accelerating regulation activities in the profession.
Wednesday, August 5, 2015
Central bank meets in bid

to stabilise falling shilling
The Central Bank of Kenya is set to hold
its Monetary Policy Committee meeting a month after the bank raised the
benchmark lending rate by 1.5 percentage points to ease ination fears due to a
weaker shilling. The bank has upped the
rate by three percentage points to 11.5
per cent since June to offset a weaker
shilling. CBK governor Patrick Njoroge
last week said he was cautiously optimistic that the currency will soon regain
stability after persistent volatility that
has seen it lose more than 10 per cent of
its value.
Friday, August 7, 2015
Tuesday, August 4, 2015
Equity Bank releases

its half- year results
Equity Bank is set to release its half year
results, becoming the second top tier
bank to do so after Kenya Commercial
Bank. The regional lender recorded a
21 per cent growth in 2014 half-year
after tax prot to Sh7.66 billion buoyed
by growth in its loan book and transactions-based income. Last week the bank
announced a Sh9.2 billion net prot in
the six months to June compared to
Sh8.1 billion in a similar period last year,
boosted by a 31.3 per cent growth of its
loan book to Sh320 billion. National Bank
of Kenya more than doubled its half-year
net prot to Sh1.72 billion on the back of
Women on Boards Network

treats graduands to dinner
The Women on Boards Network (WOBs)
is set to treat several women accountants who took part in a 10-week modular
training on corporate governance and
leadership to dinner. Members of the
Association of Women Accountants of
Kenya (AWAK) who took part in the programme will be feted at a graduation
dinner. The forum will also be used to
highlight low representation of women
in Kenyan boardrooms.
Several studies show that female representation in boardrooms is below global
standards, standing at less than 15 per
cent, despite proof that a representative
mix is benecial to companies.
Index to companies
EAST AFRICA WEATHER
TODAY
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markets, industry, policy and
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East Africa : forecast
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Nairobi Kampala
Mon
Tue
Wed
C
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25C
28C
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28
Major companies cited in todays issue of the Business Daily
Coast Industrial
EABL
Kebs
15
NSE
2,4
IFC
Bata
16
CMA
Getrudes
iHub
18
NCPB
Google
Unilever
18
EAC
Equity
15
KCB
18,20
Comesa
Airtel
15
Co-op Bank
20
WHO
NBK
15
Opec
21
Monday August 3, 2015 | BUSINESS DAILY
TOP NEWS
RADAR SCREEN
NURU MUGAMBI
DEVELOPMENT Continent needs to put green policies at the heart of its business agenda for sustainable growth
Afica ising should facto in human, natual capital

N
ow is the time for Africa. But dont just
take US President Barack Obamas
word for it; in several respects this
sentiment has been anchored on fact.
Steadily, sub-Saharan economies have
chugged along with more than a dozen markets booking impressive growth fuelled by
improved purchasing power, strong regional
and domestic demand, and investment inows all of which have kept average growth
rates consistently around four to ve per cent,
compared to the global average of three per
cent and below.
And the future appears to be brighter with
more democratisation and regional integration
which is sure to maximise resource wealth and
create employment opportunities.
With new oil and gas prospects coupled
with enviable clean energy potential in several emerging economies and infrastructure
developments aimed at driving eciencies
across all sectors, its no wonder Shakiras ode
to Africa resounds ve years after the South
Africa World Cup.
But borrowing from the critique the gyrating Columbian received for upstaging indigenous musicians on their home turf, I cant
help but draw the correlation that Africa is at
the centre stage of global economic development, however, are we merely dancing to the
tune or singing the lead vocals?
Moreover, one cannot be sure that once the
music stops, the society and environment will
be better or worse o.
The present enthusiasm of global investors, including sovereign funds, is a welcomed
change from the donor aid approach that has
clouded mind-sets for several decades.
Nevertheless, we must remember that all
this renewed attention comes with a price. And
that price is not just the interest rate of the debt
we are taking on as countries.
Our governments and political leaders have
a real opportunity to ensure that our people are
truly empowered and enabled to leverage this
kairos well into the future.
The rate at which all Africans, including
those who only seem to matter during a general election, will be delivered from perpetual
poverty, food and water insecurity, wanting
public services, and all the other eects of systemic waste and corruption, will depend on
the leaders and their ability to put the pursuit
of real, sustainable economic growth ahead of
short-term, supercial and often individualistic gains.
So what are we giving up to foreign investors? Is the funding we seek bringing us full
circle to when the social rights and economic
opportunities of the majority were mortgaged
for the benet of the few?
I doubt the deals our governments are sign-
US President Barack Obama with Akirachix co-founder Judith Owigar and President Uhuru Kenyatta during the Global Entrepreneurship Summit at the
United Nations headquarters in Gigiri, Nairobi, on July 25. FILE
ing will be as dramatic as recolonisation.
these funds may skirt some of the ethicallyThere will be measured and substantial posiimperative conditions either due to a lack of
tive economic and social impacts. However,
capacity to implement such requirements or for
there also will be disadvantageous by-products
sheer disregard for the greater good. Yet others
in the process, especially in the environmental
will turn to countries like China which come
dimension.
with fewer green strings attached.
What we need is a handful of visionary leadWe all agree that development must take
place in Africa. But certainly not at all costs, iners within government to gain momentum for
cluding losing that which makes Africa unique
the sustainable growth agenda.
our natural capital. There is an opportunity
There are several examples where individual
policymakers had an enlightened moment
cost of the accelerated growth in terms of the
which inspired them to act as a catalyst for
potential adverse eects on cultural heritage
real impact as was the case
sites, breathtakingly picturesque
landscapes and diverse wildlife that
in 1993 when South Africas
compel tourists to pay a premium to
Mervyn King, a Supreme Court
M Obamas
enjoy, boosting our local currencies
judge, led the development of a
governance standard that emand fuelling further growth.
emaks duing
bedded sustainability in the
We, therefore, as Africans also
the Global
public and private sector.
need to have a mind-set shift. As
Pope Francis put it, balancing nan- Entepeneuship
Nigeria followed suit in
cial gains with real economic growth, Summit in Naiobi 2012 when the then central
societal wellbeing and environmengovernor Sanusi Lamihad stong views on bank
tal conservation and resilience is an
do compelled lenders to adopt
inclusive gowth sustainable growth as a matter
ethical imperative.
For the greater good, the sustainof regulatory compliance.
able or green approach is especially
We recently saw similar incritical for governments to integrate into their
spiration in German Chancellor Angela Merscal and bilateral policies.
kel when she steered her G7 peers to adopt a
policy to decarbonise their economies and end
Thankfully increasingly sovereign invesextreme poverty and hunger by 2030.
tors, such as the Dutch and German investMr Obamas remarks during the Global Enment banks, require that their funds be utitrepreneurship Summit in Nairobi had strong
lised in line with sustainability principles
views on inclusive growth as well as creating
which seek to strike the prots, people and
more business opportunities for women and
planet balance.
youth.
However, all too often the custodians of
The concept of sustainable development

which includes equitable growth through
national policy and nancial market reform
may come across as a foreign talking point;
however, it is not entirely imported there are
axillary buds of green policy in the east African
region. Of note are eorts that are underway in
earnest in Ethiopia to build a climate resilient
economy by 2025.
In Kenya, the ministry of Environment is
leading a National Green Strategy supported
by World Wide Fund and United Nations Environment Programme that will cut across the
industrial sectors and integrate elements promoting quality enterprise growth, employment
creation and social inclusion.
Meanwhile, the nancial services sector is
taking a cue from the public sector and is also
recrafting its policies and priorities through
eorts led by the Kenya Bankers Association,
and the Nairobi Securities Exchange which
recently signed on as a UN Sustainable Stock
Exchanges signatory.
Ultimately these seemingly disparate eorts
sparked in various pockets of government and
industry will gain momentum and align.
The challenge then is for the stewards of
the economy to ensure that the momentum
is enabled, and the immediate and long-term
wellbeing of our people and natural capital is
genuinely interlinked with the pursuit of returns and prosperity.
Ms Mugambi heads the Sustainable Finance
Initiative at Kenya Bankers Association
TOP NEWS
Ex-CMC boss opens

battle ove secet
Jesey bank accounts
the absence of lawful begun with the founding of Fair Valley
statutory
authority Trust, before 1996, whose proceeds were
under Section 11 (3) (m) of the Capital funnelled to a secret bank account named
Markets Act, the appointment of Web- Corival in National Westminster Bank at
ber Wentzel by CMA in November 2011 St Heiler in Jersey, Channel Islands.
Mr Forster has in the past stated that
to conduct a forensic investigation into
CMC was illegal and invalid. CMA un- he deliberately left the documents belawfully abdicated its statutory power hind because the money in the oshore
under the Act, Mr Forster says in court accounts belonged to CMC.
The Webber Wentzel report said that
papers.
The CMA is yet to respond to the Mr Forster beneted the most from the
suit. Mr Forster says his action has oshore accounts, earning a total of
142,750 or 26.4 per cent of
been prompted by the fact
that the regulator is seeking
the 538,684 disbursed beto recover money from him
The poceedings, tween 2008 and 2011.
to compensate CMC, but
Other top beneciaries
deteminations, were Mr Kiereini, who was
has not stated how much
he owes.
ecommendations paid 32,000, and Mr Forsters son, Greg, who was
The law allows the CMA
and epot
to recover twice the amount
paid 19,500.
of the ad hoc
proven to have been acMr Forster is also chalquired fraudulently by ocommittee ae lenging the CMAs decision
cials of NSE-listed rms. Mr
unconstitutional to appoint retired judge
Forster now wants the court
Aaron Ringera, Jacqueline
to declare the Weber Wentzel
Kamau and James Boyd McMARTIN FORSTER
report invalid because it is a
Fie to an ad hoc committee
product of an unlawful action.
formed to hear his side of the story and
Mr Forster was dismissed from oce make recommendations based on its
in March 2011, and a few months later ndings. He argues that the CMA can
his successor, Bill Lay, was reported to only appoint its board members to
have found documents in his oce de- such a committee and that the outcome
tailing the existence and contents of the of the hearings he attended should also
Jersey accounts.
be quashed.
The fraudulent scheme is said to have
The committee was formed to rule
From Page 1
CMC Holdings showroom in Nairobi.. FILE

on allegations that Mr Forster was part
of the scheme that enabled CMCs suppliers to overstate invoices by between
1.5-2 per cent and remit the surplus to
the Jersey account.
The proceedings, determinations,
recommendations and report of the
ad hoc committee are unconstitutional
and invalid. The unlawful impugned
decisions and actions of the CMA have
occasioned the petitioner loss of oce as
director and deprived him of his right to
earn a livelihood.
Your petitioner therefore humbly
prays that this court be pleased to make
a judicial review order compelling CMA
to compensate Mr Forster for the damage caused to him by its actions and the
quantum of such compensation to be
determined by this court, Mr Forster
adds.
Mr Forster had requested for a 30-day
adjournment of the hearings two days
before they commenced on April 4 to al-
low him prepare evidence and a defence

in the matter.
This was, however, denied, and he
now says the move robbed him of an
opportunity to be tried fairly.
The former CMC CEO adds that the
regulator has refused to furnish him with
a copy of the reports compiled by the ad
hoc committee and Webber Wentzel despite several demands.
He had also asked the regulator to furnish him with a copy of the CMA board
resolutions appointing the committee
and Webber Wentzel.
Mr Forster requires the information
in order to assist him to examine and
challenge the legality and constitutionality of the impugned decisions and actions
of CMA, the court documents say.
The suit comes as Mr Kiereini faces a
CMA tribunal to hear his side of the story
before determining his fate. He had initially been slapped with the same sanctions as Mr Forster but moved to court
last year challenging the decision.

Justice Fred Ochieng last month
stopped proceedings in a civil suit led
by the CMA to recover Sh189 million from
Mr Kiereini until the tribunal hearings
are completed.
Justice Ochieng said in his ruling that
allowing the two hearings to proceed concurrently would amount to subjecting
Mr Kiereini to double jeopardy, which
is against the law.
He, however, held that striking out
the case was also not appropriate as the
amount of money at stake was substantial. The CMA had earlier obtained a
court order stopping Mr Kiereini from
transferring any of his assets held at the
Nairobi bourse until the suit seeking recovery is determined.
Other individuals believed to have
beneted from the Fair Valley Trust are
former Attorney-General Charles Njonjo
and deceased billionaire businessman
Prahland Jani.
The Webber Wentzel report said
Mr Forster had indicated to his Jersey
contacts that he would consistently destroy his copies of telefax and letters in
Nairobi.
He and Mr Kiereini allegedly dug
deeper into the fraudulent scheme by
arranging for CMC to borrow the same
money it had lost through the overcharges.
Based on an average exchange rate
of Sh125 at the time, CMC lost Sh153.7
million in the overcharges even as it reported a loss of Sh181 million.
bwasuna@ke.nationmedia.com
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Consumes bea the pain of steep ise in living cost

most important
utility of all water. The Water Services Regulatory Board
(Wasreb) is set to meet before the end of
September to decide if to raise the cost of
water for city residents by 93 per cent.
The increases have been blamed on
the cost of crude oil on the international
market and the continued weakening of
the shilling against the US dollar.
The rise in maize our prices has been
attributed to a shortage of the grain as
millers ignore stocks allocated to them by
the National Cereals and Produce Board
(NCPB) over quality concerns.
All signs point to a continued rise in
the prices of these items, which will hit
lower income and middle class households hardest. Its unfortunate because
these increases, in some cases, are cartel-driven and will aect a lot of people
whose wages are unable to keep up, said
Stephen Mutoro, the Consumer Federation of Kenya chief executive.
Besides these items, manufacturers
are likely to raise prices of other manufactured products, citing the weak shilFrom Page1
ling and the high cost of fuel. Data from

the Kenya National Bureau of Statistics
(KNBS) indicates that the cost of a twokilogramme packet of maize our rose
from an average Sh94.38 in March to
Sh113 in July. Maize our is a signicant
household purchase as it is used to make
ugali, Kenyas staple food.
A litre of petrol that was retailing at
Sh90.34 in March was in July going for
an average Sh99.45. Similarly a litre of
diesel has risen to Sh85.51 from Sh77.16
in March. Consumers who use 50 kilowatt-hours of energy every month had
to spend Sh507.62 last month, while a
similar amount of power cost Sh494.28
in March. The price of kerosene, which is
used in many poor households for lighting and cooking, also went up with a litre
costing Sh63.69 from Sh56.71 in March.
The price of a branded two-kilogramme
packet of sugar has increased by about
Sh20 over the last three months to Sh250
in supermarkets, while unbranded sugar
is selling at Sh240 in kiosks.
Meat, another key household food
item costs more, with a kilogramme go-
ing for an average Sh393.58 in July, up

from an average Sh387.96 in January.
Infant products have also gone up
with a pack of 64 disposable nappies,
which were priced at Sh1,695, rising to
a current price of Sh1,850. The price of a
popular babies body wash has also gone
up from Sh580 to Sh620.
The rise means that households will
have to spend more on maize our, transport and energy to power their homes.
It will also decrease the amount of discretionary income available for families
to invest and spend on other items like
entertainment. Nairobis middle class,
on average, spend 12.4 per cent of their
income on transport and 22 per cent on
food. Poor homes spend the largest share
of their income on food at 42.5 per cent,
rent and utilities (18.2 per cent).
A steep rise in prices of these and
other household items could lead to a
clamour for higher wages with workers
looking to match the growth in their expenses to their payslips.
The steady increase in the price of
electricity has dashed the promise of
cheaper power which providers had indicated would be reected in consumer

bills once water levels in hydro-electric
power dams rose. In last months review,
the fuel charge component was raised to
Sh2.51 per unit from Sh2.31 per unit in
June while the forex charge also increased
to Sh0.89 per unit from Sh0.60.
The rise in fuel adjustment levy, which
is linked to the amount of power generated from expensive diesel, has deed the
recent rains. The rains were expected to
increase the share of hydropower generation and further cut the use of expensive
thermal power plants.
The rise in the cost of power has been
linked to the shillings downward trend
with the local unit also responsible for
higher fuel prices. The mean monthly US dollar to the shilling exchange
rate depreciated by 1.31 per cent from
Sh96.86 per dollar in May to Sh98.13 in
June, said the Energy Regulatory Commission (ERC) during its last review of
fuel prices, reecting the impact of the
volatile shilling on household budgets.
These prices could rise even further in
the next review if the shilling continues

to fall as has been predicted.
So far, the unit continues to defy the
raising of the Central Bank Rate from 10
per cent to 11.5 per cent and the Kenya
Banks Reference Rate (KBRR) to 9.87
per cent from 8.54 per cent earlier this
month. Analysts at investment bank
Renaissance Capital say that the unit is
overvalued by a fth and is headed for
110 to the dollar by December.
Motorists are also bracing for another
increase of up to Sh6 in road maintenance
levy for every litre of petrol or diesel consumed. The levy was gazetted late last
month and will now be included in the
pump prices beginning August 14 when
ERC reviews the prices of fuel. The impact has already started to trickle down
to commuters with matatu fares rising.
A reprieve for households on the
cost of maize our is not expected until September when harvesting of this
seasons crop is expected to start, with
millers ruling out possibility of lowering
costs before then.
gkiarie@ke.nationmedia.com
ECONOMY & POLITICS
EAC dug makes seek cushion against Asia impots

BY ALLAN ODHIAMBO
Pharmaceutical manufacturers in East

Africa are seeking special safeguards
to cushion them from cheaper imports
from rivals in Asia.
The Federation of the East African
Pharmaceutical Manufacturers has
petitioned East African Community
secretary-general Richard Sezibera for
incentives that would help grow their
business amid rising competition by
cheaper imports.
Mr Nazeem Mohamed, chairman
of the lobby group, urged for the adoption of a uniform incentive programme
that would include the reservation of a
20 per cent quota on all public tenders
for products and equipment manufactured in the region.
There is a need for harmonisation of some of the possible incentive

frameworks to promote local pharmaceutical production in the region that
include; no duties on imports of raw
and packing material, pharmaceutical
manufacturing related equipment as
well as spare parts for this equipment
acquired by local manufacturers registered in the EAC, he said during a
meeting with the EAC boss.
There is also a need for classication or import restrictions for nished
pharmaceutical products that can be
produced locally, based on regional
capacity and quality audits of local
manufacturers.
Rivals from mainly India and China
have in recent years captured a huge
chunk of the regions pharmaceutical
market. The federation said the implementation of the incentive framework

would lead to the growth of local production and create jobs.
There is also the benet of reduction of substandard and counterfeit
products, creation of high value industry and attraction of investments and
nancial viability, improved skills and
technology transfer, creation of backward and forward linkages and import
savings and export earnings among
others, said Mr Mohamed.
Mr Sezibera said there was a need
for well-structured incentive frameworks that would meet the market
requirements and allow for growth
of enterprises in the bloc.
EAC countries such as Kenya have
regularly cushioned their domestic
industries from the eects of cheaper

imports. In his 2015/16 Budget, Treasury secretary Henry Rotich issued an
extension on several administrative
safety nets to cushion industries.
He handed a lifeline to manufacturers of sh nets, gas cylinders, plastic
packaging tubes and food processors
long aected by competition from
cheaper imports when he said the
government would implement a deliberate strategy to support local companies by increasing the import cost
of non-essential goods.
Manufacturers of paper and paper
board products, who have been subjected to a stay of application of the
Common External Tari at the rate of
25 per cent, were also beneciaries of
Rotichs measures.
INFLATION Harmonised Consumer Price Indices report says countrys ination for the year to June stood at 1.9pc
Kenya ated top

maket fo dolla
deals in egion
BY GERALD ANDAE
The Kenyan market has one of the most

stable prices in eastern and southern
Africa with the dollar value of items increasing by small margins compared to
peers in the region.
The Harmonised Consumer Price
Indices (HCPIs) report released by the
Comesa secretariat on Friday indicates
that Kenyas ination for the year to
June stood at only 1.9 per cent.
The country is the blocs third most
stable market after Mauritius where
the dollar value of goods and services
was unchanged over the period, and the
Democratic Republic of Congo which
recorded year-on-year ination of 0.6
per cent.
Unlike Kenyas shilling-based Consumer Price Indices (cost of living measure) which puts the countrys ination
rate in the year to June at 7.03 per cent,

the HCPIs gures submitted to the Common Market for Eastern and Southern
Africa are prepared to track monetary
ination.
The aggregated Comesa HCPIs are
calculated as weighted averages of each
countrys total household expenditure
converted to a common currency supplied by the African Development Bank
and the World Bank.
Going by latest Comesa HCPIs gures, ination for the whole Comesa
bloc stood at 9.2 per cent in the year to
June, down from 10.9 per cent registered
in the year to May 2015.
It means that using a particular or
common currency, an item that cost an
average of 100 cents in June 2014 increased to 109.20 cents in June 2015,
Comesa said in a statement.
By comparison, the dollar value of
Powerful individuals are working behind the scenes to delay enforcement

of the stringent tobacco laws that were
to take eect from June 5, Health secretary James Macharia has said.
The new laws will compel cigarette
makers to disclose the quantity produced yearly to the Health secretary.
They also ban promotion of tobacco
products as well as smoking in open

places. Mr Macharia told the National Assemblys committee on health of
frantic eorts to compromise sta at
his ministry to delay the implementation of the Tobacco Control Regulations, 2014.
The High Court suspended the implementation of the new regulations on
June 4, a day before they were meant to
take eect, citing violation of Article 10
BY NEVILLE OTUKI
Kenya and South Africa are expected

to open fresh talks in Nairobi today
in a bid to resolve a visa stando that
has threatened their bilateral relations
since last year.
Top on the agenda of South Africas
immigration ocials expected in Nairobi between today and Wednesday
is review of travel rules that could see
Kenyans start getting free passes upon
arrival in Johannesburg.
Last year, South Africa imposed
tough rules on Kenyans seeking to
visit the country, besides a service
charge of Sh5,850 for applications,
sparking an uproar.
Currently, South Africans visiting
Kenya do not require a visa if they are
on transit or plan to stay for less than
30 days. In the past, Kenyans would
get free visa if they were staying for
less than 30 days in South Africa but
required no visa if they were transiting
through South African airports.
Visa processing
A goods truck crosses the Kenya/Uganda border at Malaba. The stability of prices
in the Kenyan market boosts its chances of becoming a region investment hub. FILE
goods fell by 8.9 per cent in Burundi,
5.4 per cent in Uganda, 2.7 per cent in
Rwanda and 2.8 per cent in Zimbabwe.
Malawi was the regions market with
most unstable prices, having recorded
a harmonised ination of 23.5 per cent
followed by Sudan at 21.9 per cent.
In what highlights a common trend
across the region to maximise sin taxes,
the price of alcoholic beverage and tobacco recorded the highest increases of
24.6 per cent, followed by education at
19.6 per cent with hotel and restaurants
coming in third at 12.9 per cent. Kenya

accounts for 6.65 per cent of the Comesa HCPIs weight, Egypt 58.71 per cent,
Sudan 8.93 per cent, Uganda 4.08 per
cent, Burundi 0.47 per cent and Rwanda
1.32 per cent.
The stability of prices in the Kenyan
market boost its chances of becoming a
region investment hub. Last year, Kenya
exported goods worth Sh170 billion to
Comesa and imported Sh60.4 billion
goods.
gandae@ke.nationmedia.com
Ministe blames tobacco laws delay on poweful lobbyists

BY LYNET IGADWAH
Naiobi to open
fesh talks with
South Afica on
visa ules ow
of the Constitution by the State.

The tobacco industry is big and
there is a lot of commercial interest
in it, Mr Macharia said in response to
Embakasi North MP James Gakuya,
who sought to know the status of implementation of the World Health Organization (WHO) convention and the
Tobacco Control Regulations, 2014.
BAT moved to court to contest the
legality of the regulations and the
Health ministrys failure to release the

required technical information to enable implementation of the law.
Kenya ratied and signed the WHO
Framework Convention for Tobacco
Control (WHO-FCTC) in June 2004,
making it the second country to sign
and ratify the convention after Norway.
Kenya created the Tobacco Control
Board in 2008, but it is only recently
that it started pushing its agenda.
We are hopeful of a deal this time

round, said Kenyas Foreign Aairs
secretary Amina Mohamed. We look
to have Kenyans get their visa upon arrival in South Africa or even drop the
need for visa for those on short travels
as is the case with South Africans.
Previous talks have yielded little.
Kenyans travelling to South Africa also have to wait for at least seven
working days for visa processing.
Those making visits of more than
30 days have to pay an additional visa
fee of Sh4,800 on top of the Sh5,850
service charge.
If the two countries fail to agree
on the pact, Kenyas Immigration Department will from September 1 make
it mandatory for South Africans, like
other foreigners, to apply for visa online at a fee and wait for at least two
days to get their travel documents.
Kenyas new immigration rules require all visiting foreigners to register
and apply for visa on the eCitizen portal a government website from
September 1.
Bargaining chip
Presently, foreigners, excluding South
Africans who do not need visas to visit
Kenya, get their visas upon arrival in
the country.
The other group that is excluded
from having visas to visit Kenya are
nationalities of Tanzania, Uganda and
Rwanda under the East African Communitys common market protocol.
Kenyan ocials now seem emboldened by the new visa requirement that
could be a potent bargaining chip for
better terms with South Africa.
CORPORATE NEWS
NEWS I REVIEWS I ANALYSIS
Ruaaka land sale and

cost cutting lift EABL
net pot to Sh9.6bn
STRATEGY Disposal of 15 acres of land at Ruaraka
helped boost the brewers nancial position by Sh1.8bn

BY MUGAMBI MUTEGI
The sale of land and cost-cutting measures

helped lift East Africa Breweries Limiteds
(EABL) full-year prot 40 per cent to Sh9.6
billion, the beer makers nancial statements
have showed.
The brewer has booked a gain of Sh1.8
billion from the sale of 15 acres of land (out
of 60 acres of idle land it owns in its Ruaraka
headquarters) to an undisclosed party, boosting its earnings.
Administrative expenses decreased by
Sh1.5 billion to Sh9.3 billion as the company
reaped the benets of a restructuring conducted last year, which saw 100 employees
get laid o. The gains from land sale and
expenditure cuts were critical for EABL especially after a marginal increase in sales of
its mainstream beer, Tusker and emerging
brand Balozi in Kenya as well as Serengeti
beer in Tanzania.
We currently own about 60 acres of undeveloped land at Ruaraka and think we
need to hold about half of that for future
capacity expansion, said the EABL chief executive ocer Charles Ireland (above) in an
interview shortly after announcing EABLs
results on Friday.
The balance of that acreage will never be
used and that is why we decided to dispose
15 acres in the last nancial year. Another
10 acres or so will be disposed this nancial
year.
In 2012 EABL sold 32 acres of land to London-based private equity fund Actis on which
it is building the multibillion-shilling Garden
City Mall. The brewer last year spent Sh1.18
billion in restructuring its business, seeking
to realign its cost structure to a sharp revenue
dip from Senator Keg following the introduction of a higher rate of excise tax.
Costs like oce supplies dropped by Sh771
million to Sh2 billion but sta expenses increased 8.5 per cent to Sh5.15 billion.
The benets of restructuring as well as
measures taken to manage the cost of sales
are starting to come through for the business,
said Tracy Barnes, EABL nance director.
The beer and spirits maker said its revenue
rose to Sh64.42 billion from Sh60.75 billion
the previous year. Revenue generated by its
mainstay Kenyan business grew by three per
cent. EABL said this growth would have been
six per cent were it not for the slow growth
of Senator Keg.
Growth of the low-end beer is, however,
expected to pickup in the current nancial
Brewers prot (Sh Bn)

EABLs land sale and cost-cutting measures helped lift the brewers full-year
prot 40 per cent to Sh9.6 billion.
Lamu esidents oppose Sh23.5bn wind fam

BY BRIAN WASUNA
A section of Lamu residents has

moved to court seeking to stop
compulsory acquisition of their
land for the construction of a
Sh23.5 billion ($235 million) wind
farm by a Belgian company.
The residents want the court
to quash a decision by the Lamu
County Assembly approving a
request by Kenwind Holdings
to acquire 3,167 acres of land in
Mpeketoni for the project. They
hold that the County Assembly unlawfully passed the motion before
the governors oce had approved
Kenwinds request.
They hold that over 8,000
Mpeketoni residents were not
informed of the plan to acquire
their land, and that they have not
been oered any alternative for
settlement. James Gichu, one of
the residents, says the land has
been occupied by members of
minority communities known as
the Bajun and Sanya.
Lamu Governor Issah Timamy. FILE

Kenwind has partnered with
Belgian rm Electrawinds to develop the wind plant. International
Finance Corporation (IFC) the
private sector investment arm of
the World Bank announced its
support for the project in June
2013.
The suit land has been occupied by indigenous communities
known as the Bajun and Sanya
since time immemorial and the

illegal alienation of their land
without their participation will
amount to a violation of their
rights. The unlawful approval
will culminate into evicting over
8,000 residents of Baharini Ward,
Mr Gichu says.
The petitioners lawyer Ndegwa
Njiru added that the area has hospitals, 10 churches, three mosques,
three public primary schools and
other social amenities which benet the residents.
Mr Njiru says that the County
Assembly and county government
hold the land in trust for the 8,000
residents and must dissolve the
trust before releasing the land to
anyone else.
Justice Oscar Angote on Tuesday directed the petitioners to
serve the Lamu County Assembly, governor, attorney-general,
National Land Commission and
Kenwind with the suit papers.
The judge has set September 11
for hearing of the suit.
SA insuance goup eyes 25pc

moe stakes in Kenyan ms
BY VICTOR JUMA
SOURCE; EABL
year after the government revised excise

duty payable to a remission (rebate) of 90
per cent.
Tanzanias revenue grew by two per cent
as the company experienced slowed performance by its agship beer brand Serengeti while
Uganda revenue grew by seven per cent.Our
mainstream beers were challenged hence the
softening in revenues this year. In the current
nancial year, Tusker will remain our main
focus, said Jane Karuku, the managing director of Kenya Breweries Limited.
Reserve spirits (Ciroc and Singleton) as
well as ready-to-drink brands (Smirno Ice
Double Black with Guarana and Snapp), however, boosted the brewer, growing 71 and 70
per cent respectively. Sales of premium sprits
like the Johnnie Walker brand grew by 31 per
cent while emerging sprits such as Jebel Gold
grew by 32 per cent.
The brewer recently paid its parent company Sh2.8 billion to oset an outstanding
$200 million ve-year loan as its nancing
costs for the year decreased four per cent to
Sh4 billion. Its total borrowings stand at
Sh33.7 billion, a decrease from Sh36.6 billion the previous year.
pmutegi@ke.nationmedia.com
South Africa-based insurance

group Metropolitan & Momentum
International (MMI Holdings) is
set to spend over Sh1 billion on acquisition of additional 25 per cent
stakes each in its Kenyan subsidiaries Cannon Assurance and Metropolitan Life Kenya.
MMI Holdings rst bought
into Cannon last year, taking a
66.3 per cent stake at a cost of
Sh2.5 billion. Its equity in Metropolitan also stands at the same
level, leaving with it minority interests of 33.7 per cent each in the
two subsidiaries.
MMI says it is ready to further
boost its shareholding in the units,
setting aside the requisite sums
that it will use to exercise its right
of rst refusal should the non-controlling interests opt to sell their
stake from next year.
Non-controlling interests of
25 per cent of Metropolitan Life
Kenya and Cannon have the option to sell their shares from October 3, 2016 at a price linked to
embedded value, MMI said in a
trading update.
In terms of international
nancial reporting standards
Subsidiaries speciality
Metropolitan only offers Life
insurance while Cannon, which has
ve branches in Kenya, is a composite
underwriter
(IFRS), the group has recognised
a nancial liability, being the
present value of the estimated
purchase price, for exercising
this option.
MMI says it has already consolidated 96 per cent of the subsidiaries earnings and de-recognised
the non-controlling interest based
on the fact that it has already provided for their buyout.
Cannon and Metropolitan
which are in the process of merging their operations did not respond to our queries by the time
of going to press.
Customers queue at an insurance

rm. FILE
In the initial acquisition of Cannon, MMI oered its shareholders
an undisclosed minority stake in
Metropolitan as part of the cashand-stock deal.
The additional share purchases
by the multinational are expected to see the exit of most of those
shareholders. MMI is betting on
the acquisitions to grow its presence in the East African market
where the low uptake of insurance at less than ve per cent
is seen providing future growth
opportunities.
Cannon and Metropolitan currently operate only in Kenya but
the multinational plans to use the
subsidiaries to expand in the region in the medium term.
CORPORATE NEWS
Thee doctos get

Sh1.8bn to build
Ridgeways hospital
FUNDING Sh577 million funding to come
from the International Finance Corporation

BY VICTOR JUMA
Three Kenyan dcotors have secured

Sh1.8 billion funding from international investors for a hospital to be
built in Nairobis Ridgeways estate.
The hospital, named Iso Health
Limited and sponsored by three Kenyan doctors, is set to receive Sh577 million from the International Finance
Corporation (IFC), which is part of the
consortium of nanciers.
The balance is to be provided by
private equity rms Abraaj Group and
Africa Health Fund (AHF).
Iso is set to oer treatment and
care for heart diseases, targeting the
mass market. The investors have assembled a team of cardiac specialists,
operating under an unnamed Indian
hospital brand.
The two-storey hospital will have

130 beds with a total oor area of 7,926
square metres.
According to disclosure documents
by the IFC, the hospital will be built on
2.5 acres of land to be bought from a
Dr Githegi, who is among the doctors
sponsoring the project. Construction
of the hospital is expected to be complete by end of 2017.
The investment in Iso is the latest
in Kenya where investors, including
private equity rms, are putting up
new hospitals and expanding existing facilities to capture increasing
demand for healthcare by the growing middle class.
Equity Group has also announced
its funding of healthcare institutions
around the country that will be operated by healthcare professionals and
Lawyes fee
stalls shaing
of Sh5bn estate
BY BRIAN WASUNA
Workers put nishing touches to a new childrens wing at the Moi Teaching and
Referral Hospital in Eldoret in March. Growth in healthcare is being driven by a
rising population among other factors. JARED NYATAYA
branded Equity Aa. Gertrudes Childrens Hospital in 2013 invested Sh500
million to set up a new building at its
Muthaiga branch, raising its bed capacity to 103 from the previous 83.
Other hospitals that have made
new investments in the past few
years include Nairobi and the Aga
Khan hospitals that have put up cancer treatment centres.
Aggressive expansion of private
hospitals has been linked to a rising
spend on healthcare by the countrys
middle class as government hospitals
suer from congestion and frequent
strikes.
This has seen charitable trusts and
private equity rms increase their investments in the healthcare market,
with a view to promoting social welfare and earning returns.
Research rm Business Monitor

International (BMI) says growth in
Kenyas healthcare sector is being
driven by a rising population and
increased awareness of preventative
healthcare.
The investors are also eyeing rising
cases of illnesses such as malaria and
diseases of the respiratory systems.
In comparison to many other
African markets... Kenya oers more
commercial promise and a more stable overall business environment,
BMI said in a research note.
The research rm says the local
healthcare sector has been growing at
double digits, with revenues rising 11.8
per cent to Sh212 billion last year compared to Sh190.3 billion in 2014.
vjuma@ke.nationmedia.com
A lawyers demand for Sh455 million

in legal fees has hampered inheritance
by the children of a deceased coee
farmers vast empire estimated to be
worth Sh5.1 billion.
Gatheru Gathemia has moved to
court seeking to stop the children of
deceased coee farmers Samuel Gitau
Munene and Winnie Wanjiru from
transferring any of their assets in the
estate in a bid to secure the disputed
fee. Mr Gathemia says the fees arose
from succession cases in which he
represented Jane and Joan Munene
against their brothers, who had taken
a majority stake in the estate.
The lawyer argues that his legal
fees were to be pegged on the total
value of the estate, which stands at
Sh5.1 billion today. Jane and Joan,
who have a combined 40 per cent
stake in the estate, however say Mr
Gathemias fees cannot be pegged on
their siblings inheritance as he did
not represent them in the suit.
The children inherited their parents coee estate and several tracts
of land.
Google to put Sambuu

Reseve on Steet View
BY DOREEN WAINAINAH
Global IT giant Google is set

to put Kenyas Samburu National Reserve on its Street
View platform, exposing it to
millions who use the feature
across the world.
Street View, a Google Maps
feature, oers users a panoramic (360 degrees) view of a
place. It works by searching an
address on Google Maps. The
address and street imagery
appears and by clicking on
the image, a user can view a
picture of the site. By moving
the mouse around, a user can
view all the buildings visible
within 360 degrees, similar to
what one would see if standing
at the address.
Street View will also allow
users to upload additional pictures of destinations that can
be viewed by the public. Kenyans currently have access to
Street View images for other
destinations including dierent states in the US, Europe,
Australia and even South Africa but cannot upload or
view images of local streets
and sites.
Samburu National Re-
Decision making aid

Increasing use of travel apps
and pages including Trip Adviser
has become a benchmark for
selection of destinations by
users.
serve remains one of the few

reserves that humans cohabit
with elephants. It hosts approximately 160 elephant
families, which translates to
over 1,000 elephants. Google
plans to launch the feature in
September through a partnership with Save the Elephants
initiative.
The feature is expected to
attract interest of potential
visitors by oering them a
glimpse of what they would see
on a tour of the park. National
parks and reserves oer a key
attraction to animal lovers who

travel across continents to experience scenes such as the annual wildebeest migration at
the Maasai Mara National Park,
and also see elephants - whose
population has been reduced
signicantly by poachers who
kill them for their ivory.
In Africa, South Africa is
currently the only country
that has Street View. Kenya
currently has access to the
main Google Maps app that is
used to nd directions.
Users are also able to nd
the quickest and shortest
routes to their destinations.
Using the Google Maps, users
can also zoom in for a satellite
view of an area. The modern
traveller has taken to the Internet to study the most exotic
destinations to visit.
IDEAS & DEBATE

OPINIONS I REVIEWS I ANALYSIS
Why uneven MDG pogess must

dive wold esolve to do much bette
Other Voices
Christine Lagarde
IMF managing director
TARGETS We need a common vision
and clear agenda, with measurable goals

early childhood malnutrition and its
lifelong consequenceshas been even
more modest. Most areas have seen
The world received an important reuneven progress, but in sub-Saharan
Africa, the number of stunted children
port card last month in the form of
actually rose by a third between 1990
the latest annual Millennium Development Goals Report. It highlights a
and 2013.
Since the poverty line was originally
number of important achievements,
dened by the money income required
but omits to mention that some tarto meet basic needs, including food, it
gets of the Millennium Development
is dicult to understand how incomes
Goals (MDGs) were lower than those
could rise to a level that cuts poverty
agreed to at the relevant UN internaby more than half, while the impact on
tional conferences of the 1990s.
Some of the good news is real. Halvnutrition has been so much less.
ing the share of the worlds populaMeanwhile, almost half of the
tion who are extremely poor during
worlds employed work in vulnerable
1990-2015 was achieved well ahead of
conditions, with women and youth
schedule. But there is more to the story.
more likely to be in insecure, poorly
Upon closer inspection, it is clear that
remunerated occupations.
progress on poverty has been uneven
Since 1990, 2.1 billion people have
across and within regained access to imgions and countries,
proved
sanitation.
with the rapid deBut the proportion
With the deadline
velopment of China
of people defecating
still ve months
alone accounting for
in the open has fallen
away, a few moe
much of world povfar short of the MDG
MDG tagets may
erty reduction.
75 per cent reduction
target, threatening the
Progress toward
be achieved when
health and nutrition of
most other MDG tarmonitoing is
others, especially chilgets has been more
completed
limited. Slower growth
dren.
for over half a decade,
The target of halvincreased economic ining the population
equality in many counshare without sustries and reduced pubtainable access to safe
lic social provisioning
drinking water was
also met by 2010 with those using an
in recent decades, have undermined
improved water source rising from 76
progress despite growth in average
per cent in 1990 to 91 per cent in 2015.
incomes.
The share of slum dwellers in urban
According to the World Bank, the
populations has declined from 46 per
global poverty rate at the purchasing
power parity of 1.25 dollars/day fell to
cent in 2000 to 30 per cent in 2014, but
less than half the 1990 rate by 2010.
their number has grown by more than
25 per cent, from 689 million in 1990
By 2015, the number of extreme poor
to 881 million in 2014.
had fallen from 1.9 billion in 1990 to
The maternal mortality ratio has
836 million.
fallen by almost half since 1990, but
Meanwhile, the hunger rate or
well short of the MDG target of 75
the prevalence of undernourishment
per cent; only half the countries in
(inadequate dietary energy) has declined by less than half since 1990,
the world collect data on maternal
from 23.3 per cent in 1991 to 12.9 per
death causes.
cent in 2014.
Globally, more than 71 per cent of
births in 2014 were assisted by skilled
FAO estimates that 780 million
health personnel, up from 59 per cent
people went hungry in developing
countries in 2014, down from 991 milin 1990. In developing countries, only
lion in 1991 well short of the more
56 per cent of rural births are attended
by skilled health personnel, compared
ambitious 1996 World Food Summit
with 87 per cent of urban births.
goal to halve the number of hungry
The global under-ve mortality rate
people by 2015.
At the same time, progress in reduchas declined by more than half, from
ing child stuntinga key measure of
90 to 43 deaths per 1,000 live births
Heather Stewart (Guardian)

Last week, Christine Lagarde told the IMFs
board, made up of representatives of its
member countries, that an IMF team should
be sent to Greece. Observers have been
expecting Greece to seek a short-term
bridging loan from its eurozone partners
to cover the ECB payment. But without
IMF involvement, the amount of funding
needed in the coming months is likely to be
considerably higher. The IMFs role in the
eurozone bailouts has been controversial
since the rst rescue of Greece in 2010.
BY JOMO KWAME SUNDARAM AND

MICHAEL T CLARK
Najib Razak
Malaysian Prime Minister
A teacher and his charges at a primary school in Mombasa. Primary school net
enrollment rate in developing countries reached 91 per cent in 2015, up from 83
per cent in 2000. LABAN WALLOGA
between 1990 and 2015.
Nevertheless, about 16,000 children
under ve continue to die daily in 2015,
mostly from preventable causes.
Tuberculosis prevention, diagnosis
and treatment saved an estimated 37
million lives during 2000-2013. Growing interventions have averted over 6.2
million malaria deaths during 20002015, primarily of children under ve
in sub-Saharan Africa.
Meanwhile, new HIV infections fell
by about 40 per cent between 2000 and
2013, from around 3.5 million to 2.1 million. By mid-2014, 13.6 million people
with HIV were receiving antiretroviral
therapy globally, up from just 800,000
in 2003.
The literacy rate among youth aged
15 to 24 rose globally from 83 per cent
to 91 per cent during 1990-2015. The
primary school net enrollment rate in
developing countries reached 91 per
cent in 2015, up from 83 per cent in
2000. Many more of the worlds children have been enrolled in primary
schools, with girls fast closing the gap
with boys.
Primary school age children out of
school worldwide have declined by less
than half, from 100 million in 2000 to
57 million in 2015, while the number of
children in primary school in sub-Saharan Africa more than doubled during
1990-2012, from 62 to 149 million.
In developing countries, children
from the poorest households are four
times as likely to be out of school as
those from the richest households. As

with child survival and other matters,
further progress will require concerted
reduction of socio-economic disparities. With the MDGs deadline still ve
months away, a few more MDG targets
may be achieved when monitoring is
completed. But much more will need
to be done to meet targets on nutrition, public health, sanitation, gender
equality, infrastructure, resource sustainability as well as climate change
mitigation and adaptation.
Developing a broad, ambitious
and universally relevant set of goals
to guide world community eorts in
the next 25 years seems done. But as
the Addis Ababa Action Agenda has
shown, meaningful progress on the
means of implementation is proving very dicult.
A common vision and a clear
agenda, with measurable goals and
targets facilitating accountability,
are now proven requisites for achieving success. Despite its mixed record,
international mobilisation around
the MDGs oers valuable lessons to
draw upon. It also provides proof that
progress is only feasible with the requisite shared political will.
Mr Sundaram is United Nations Assistant-Secretary-General for Economic Development. Mr Clark is Special
Adviser on International Governance
at the Food and Agriculture Organisation of the United Nations.
Andy Mukherjee (Reuters)

By unceremoniously dumping his deputy,
embattled Malaysian Prime Minister Najib
Razak has opened the door to a protracted
power struggle. In doing so, he raises the
prospect of lasting nancial damage.The
last time a deputy prime minister got red
in Malaysia, investors got the rude shock of
capital controls. Seventeen years later, the
commodity-exporting nation has squirrelled
away enough foreign assets to withstand
capital outows for some time.
Ashraf Ghani
Afghan istan president
David Rohde (Reuters)

Afghanistans new president, Ashraf Ghani,
has also come under withering criticism
from fellow Afghans for a bold diplomatic
gamble. Since taking ofce, the US-educated
anthropologist has openly wooed Chinese
and Pakistani ofcials. He made many
concessions in hopes they could help bring
the Taliban to the negotiating table. As odd
as it may seem to some Americans, Taliban
leader Omars death could not come at a
worse time.
10
EDITORIAL & OPINION
Published by the Nation Media Group, Kimathi Street, Nairobi
Joe Muganda Chief Executive Ofcer | Tom Mshindi: Editor-in- Chieff

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

Afica visa ow amicably
enyans are eagerly waiting

to see whether this weeks
talks between government
ocials and their South African
counterparts to resolve a visa
stando will bear any fruit.
The row has hampered bilateral relations since last year
with Nairobi accusing Pretoria
of high-handedness in regard to
visa rules.
Many Kenyans, including senior government ocials and politicians, have suered at the hands
of South African immigration ocials who deny them entry into the
country over frivolous issues that
could easily be resolved without
the big brother attitude.
South Africa last imposed
tough rules on Kenyans seeking
to visit the country, besides levying
a service charge of Sh5,850 for applications. South Africans visiting
Kenya currently do not require a
visa if they are on transit or plan
to stay for less than 30 days.
Previously, Kenyans used to get
free visa if they were staying for
less than 30 days in South Africa
and required no visa if they were
transiting through South African
airports.
Kenyans travelling to South Africa have to wait for at least seven
working days for their visas to be
processed. Those making visits of
more than 30 days are charged an
additional Sh4,800 on top of the
Sh5,850 service charge.
The impasse has seen Kenya
threaten to impose similar tough
rules if South Africa does not

rescind them. We hope that the
South African immigration ocials will reach an amicable solution with their Kenyan counterparts. It is hoped that Kenyans on
short visits will soon start getting
free passes upon arrival in Johannesburg.
We support the governments
call for South Africa to ease the restrictions. While it is in order for
a country to regulate who crosses
its borders, it is imperative that
the exercise be done in a humane
manner. It beats common sense
to deny a senior ocial travelling in a government delegation
entry over simple administrative
issues that can be resolved at the
entry point.
South Africa is not the only
country in the world that faces a
mounting problem with illegal immigration. Kenya also has to tackle
similar challenges along its porous
borders. While previous attempts
to resolve the matter have yielded nothing it is our hope that this
weeks talks will reach an amiable
solution that will strengthen ties
between the two countries.
We support the governments
stance of not backing down and
which has announced that if there
is no solution to the problem, the
Department of Immigration will
from September 1 make it mandatory for South Africans to apply for
visas online at a fee and wait for at
least two days to get their travel
documents.
Implement tobacco laws
t is indeed quite shocking to

hear the Health minister state
that powerful individuals are
working behind the scenes to delay enforcement of the stringent
tobacco laws that were to take effect in June.
The Tobacco Control Regulations, 2014 were meant to compel
cigarette makers to disclose the
quantity they produce annually
to the Health secretary. They also
banned promotion of tobacco
products as well as smoking in
open places.
The minister told the National
Assembly that there were eorts
to compromise his sta to delay
the implementation of the regulations.

Though Kenya ratied and
signed the World Health Organisation Framework Convention
for Tobacco Control in 2004, the
implementation has been lacklustre.
It is indeed unacceptable that
despite having laws in place, they
cannot be implemented because
of shenanigans.
We must all understand that
the health of each and every Kenyan is paramount and must be
protected at all costs.
The laws must be implemented
without fail.
To comment...
The editor invites comments on our content and topical issues. Please
include your full names, telephone number and address in your letter.
Email: bdfeedback@nation.co.ke
Ann, youre very valuable to this company. Youre irreplaceable...

And thats why I cant promote you...
Lessons fo Kenya fom Obamas visit
COLLINS ODOTE
REFLECTION
lot has been written about

President Barack Obamas trip
to Kenya. The visit was historic
seeing he was the rst sitting American president as well as having Kenyan roots. And not forgetting the sour
relationship between Kenya and the US
after the 2013 elections.
Kenya made an eort to put its best
foot forward. Security at the airport
was beefed up, the airport was given a
face-lift, and welcoming billboards were
erected. Nairobi Governor Evans Kidero
ordered grass to be planted on Uhuru
Highway, even though it did not grow in
time. Siaya, the county where Obamas
father hailed, organised several events
to mark the occasion.
Kenyans followed events keenly from
the time Air Force One landed at JKIA to
Obama disembarking from the plane,
receiving a bouquet of owers and hugging President Uhuru Kenyatta.
By the time Obama left for Kenya for
Ethiopia, a lot had happened. Listening
to coverage in mainstream media and
following social media discussions, one
could see that the event had made an
impact on Kenyans. Most people now
knew what POTUS meant and what the
beast was.
Now that the excitement has died
down, two lessons stood out for me.
Before that, however, it is important
to underscore that the hosting of the

Global Entrepreneurship Summit has
been benecial to this country in many
ways, beyond the huge nancial deals
that were struck. The coverage that the
meet gave Kenya in the international
arena is huge and has long-term benets that we must tap.
My top two priorities though are
promoting equality and ensuring sustainability. People will remember the
comparisons made between a child in
Nyanza and Central, and one in Rift
Valley and her counterpart in Nairobi.
The inequality debate drove us to embrace devolution. But more is required
because inequality has several facets,
not just economic. There is also social,
political and gender inequality, among
others.
Kenyans are often too quick to judge
others based on where they come from.
If you follow social media you will see
how many times we fall into the trap of
stereotypes. It is time to take bold steps
to celebrate our diversity.
This past week in Mombasa I was reminded that it takes more than one nger to kill lice. It takes all of us to make
Kenya prosperous. We have to start
pulling in the same direction as much
as possible and to value each other. We
have the same country to build and it
requires all our collective energies.
My second take home was sustainability. As an environmentalist it was
gratifying to note the place that sustainability occupied in Obamas discussions.
In his speech at Kasarani, he stated that
We have not inherited this land from
our forebears, we have borrowed it from
our children.
All students of the environment
VIEWS FROM ABROAD
will recall that these words were at

the core of the case led by renowned
environmental activists Tony Oposa
against forest logging in Philippines, a
case which popularised the concept of
intergenerational equity.
Taken together with the discussions
Obama had with civil society where conservation was again a key theme, it is
clear that in all we do we should ensure
that we balance our interests with those
of future generations.
We also have to remember that the
resources at our disposal are a gift and
we have a responsibility to extend their
benets to those who will come after us.
Importantly, conservation should never
be at loggerheads with development or
with community welfare. Sustainability
is about ensuring that communities are
central, and that development occurs.
This is at the core of our commitment
in Article 10 of the Constitution.
While these two lessons may look
unrelated, they are connected. It is not
possible to have sustainability when we
do not address equality. Neither can you
speak about equality if you focus on exploitation without conservation. For the
word exploitation connotes to mistreat,
to corrupt, to abuse or misuse. It extends
to not just how we use natural resources,
but all resources at our disposal.
I hope that beyond the discourse
about the beast, the political banter
and other aspects of the visit, we shall
reect deeply on the discussions during
Obamas visit and determine our takehome messages. Let us ask ourselves
what we will do to apply some of the
lessons from his dialogue.
Dr Odote is a senior lecturer, University of Nairobi
Opinions fom aound the wold
China not keen on reforms
Acts y in the face of civility
Pro-poor justice system needed
The Chinese government certainly likes to

control things. It keeps its currency articially
low to promote exports. It meddles heavily
in real estate prices.
THE USA TODAY
WASHINGTON DC And it is obsessed
with controlling information on the Internet.
But nothing has been as jarring to American
sensibilities as its recent efforts to prop up stock
prices, which began plunging this summer.
No matter how rich one is, theres one thing money

cant buy - respect. And it certainly cant keep one
out of jail. Mainlanders are now the worlds top
HONG KONG STANDARD travelers in terms of
HONG KONG
numbers and spending.
But unfortunately, theyre also the second most
unwelcome tourists, behind the so-called ugly
Americans. Some mainlanders believe money is
everything and behave like barbarians.
A functioning, fair and accessible justice system

is the foundation of every democratic state, says
head of the European Union delegation to Zambia
Ambassador Gilles
THE POST
LUSAKA
Hervio. Can anyone have
a dispute with this statement from Ambassador
Hervio? Our justice system is still very much
anchored on money. If you dont have money, there
is very little justice you can get in this country.
11
EDITORIAL & OPINION
Happiness boils down to wellbeing and secuity

JORGE RAMOS
SOCIETY
visited the island of Mykonos,

Greece, in early July, shortly
before voters shot down the
countrys deal with its creditors
in a referendum. Despite Greeces
woes, life was great on Mykonos,
or so it seemed. At restaurants and
bars, people were laughing and
dancing to Mediterranean beats
as the Aegeans warm winds blew
through the crowd. The message on
Mykonos was clear: We are happy,
and we want the world to know.
I remember seeing a bottle of
champagne listed on a menu for
120,000 euros (about Sh13.6 mil-
lion). Who pays that much for

champagne? Wealthy Russians,
I was told.
Despite the vibrant atmosphere,
a sad disconnect was also palpable.
While visitors were there looking
for a bit of happiness, the Greeks
were suering through an ongoing
economic tragedy.
The visit got me thinking about
the notions of happiness and the
connection to quality of life. In its
2013 World Happiness Report, the
UN made an important distinction between happiness as a point
of view and happiness as a distinctive measurement of well-being and
quality of life.
In order to rate a list of nations
Letters
from the happiest to the saddest,

the UN took into account six criteria: productivity per person, social
support, life expectancy, freedom
to make choices, generosity and
perceptions of corruption.
According to the list, the happiest nations are all in Northern
Europe Denmark, Norway, Switzerland, Holland and Sweden; the
saddest countries are in Africa
Rwanda, Burundi, the Central African Republic, Benin and Togo.
In addition, there are some curious rankings on the list. Mexicans
(at No. 16) appear to be happier
than Americans (No. 17); people
in Venezuela (No. 20) are happier
than people in Germany (No. 26).
The editor welcomes brief letters on topical issues. Opinions expressed here are not necessarily those of
the editor or publisher. They may be edited for clarity, space or legal considerations.
Send via e-mail to bdfeedback@ke.nationmedia.com
Professionalism needed to build Kenya
any progressive countries across the world

respect professionalism in the management of public
aairs. The adherence to professional codes and standards
is what separates the developed
countries from their developing
counterparts.
Best practices have shown that
societies that employ and respect
professionals tend to achieve
faster rates of development. Africa should not be left behind on
this front as it strives to join the
league of developed nations.
At industry level, companies
that are managed by professionals
are known to post better results.
Professional managers are likely
to apply the best policies and technical skills to improve productivity. Better still, professionals will
respect systems and established
procedures.
Why has Kenya not fully professionalised her operations after
more than 50 years of independence?
When former president Mwai
The study makes it clear that happy

people are not usually the wealthiest or those with the most possessions. They are generally healthy,
employed and living in an open
society with clear rules.
True happiness boils down to
achieving a minimum level of wellbeing for people. A nation in which
people can co-exist in harmony is
happy nation. Its not just a party for
foreigners in Mykonos. Its knowing that when the Greeks wake up
the next morning, they can begin
to rebuild secure futures for themselves and their families. Thats true
happiness.
The writer is an Emmy Award-winning journalist
Former president Mwai Kibaki. FILE

Kibaki brought professionals on
board, the country experienced
faster economic growth. From a
growth rate of negative two per
cent, the economy shot to seven
per cent in less than two years.
The same trick can work for the
Jubilee government.
The tourism sector is guilty
of not upholding professionalism. The industry has the highest number of unskilled labour.
Could it be due to the fact that

most people take it as a last-resort discipline?
How can a lucrative sector be
treated as a second career choice?
Things must change to give the sector the recognition it deserves.
While answering questions
touching on direct ights from
the US to Kenya and the issue of
travel advisories, President Barack
Obama demonstrated respect for
professionals.
Road side declarations and
blind pronouncements have no
place in America. Cant we borrow a leaf?
We should change the culture
of embracing quacks instead of
professionals. The frequent collapse of buildings and erroneous
medication by untrained doctors
are perfect examples of neglect of
professionalism.
Soon, bridges will collapse leading to massive loss of lives due to
poor workmanship by bogus engineers. Let us be warned.
Change KQs
management
for rebound
enya Airways has reported a record loss

of Sh25.7 billion after
tax. This has been attributed to
competition from Middle East
carriers, travel advisories and
high operating costs.
I wonder why high operating cost is among the causes
when they are the same people who were planning to
lease passenger buses at Sh10
million per month. Was that
sustainable?
I believe when we change
the management of the airline
things will start moving swiftly
and such high losses wont be
experienced again. There is
need for new people with fresh
ideas who will oer alternatives
to travel advisories and ways to
curb competition.
BENARD AMAYA
NDOLO VICTOR
via email
Bungoma
EACC should investigate misuse of funds by ministries immediately
he Ethics and Anti-Corruption Commission should

move with speed and investigate ocials whose ministries
have been mentioned adversely in
the auditor-generals report to ascertain culpability.
The report is shocking. State
corporations have glaring accountability issues. More than 70
per cent of money spent by gov-
ernment was not fully approved.

Some government ocials have
questioned the credibility of the
auditor-generals ndings saying
the report could have failed to include documents from the aected
ministries. But questions abound
on why the ministries failed to provide the documents.
Parliament has failed in its oversight mandate.
On his trip to Kenya, US President Barack Obama while acknowledging Kenyas economic
potential, warned that the cancer of corruption was holding the
country back.
Kenya continues to scare investors just days after hosting the 2015
Global Entrepreneurship Summit.
The country is ranked among top
corrupt nations in the world ac-
cording to the Global Transparency International Corruption

Perception Index, 2014.
The war on graft seems to be
targeted at a certain clique of individuals where only the small
sh fry immediately. The big sh
rally their supporters and retreat
to tribalism, obstructing the course
of justice.
EDWIN KISANYA, Maseno
It will take moe

than Powe Afica
to light up continent
KENNETH LEE AND EDWARD MIGUE
ENERGY
hen President Barack Obama visited Kenya last weekend, he visited not just his ancestral home,
but one of the target countries in his $7 billion
(Sh700 billion) signature foreign aid initiative,
Power Africa.
Launched in 2013, Power Africa aims to
boost electricity access in sub-Saharan Africa.
The initiative has prioritised expanding the
continents capacity to generate electricity,
with an additional focus on small-scale renewable energy investments. This is a useful rst
step. But investing in generation alone will be
useless without addressing the economic and
institutional obstacles to distributing electricity to homes and businesses.
All of sub Saharan Africa, with 961 million
residents, currently only consumes about as
much power as New York City. Expanding
energy access will be vital for driving Africas
economic transformation.
In recent years, hundreds of millions of dollars have been spent to expand the grid across
most of the countryside, leaving the majority
of Kenyans under grid, or within a half-mile
of power grid infrastructure.
Yet the electrication rate in Kenya is still
only 30 per cent, and in our data just ve percent of rural households and 20 per cent of
private businesses within a half-mile of the
infrastructure have electricity. Clearly, building more infrastructure isnt enough.
Why not? In a study conducted with the
University of California, Berkeley and the nonprot Innovations for Poverty Action, we document a host of challenges in trying to connect
rural Kenyan households to the grid. The price
of connections remains high for most, few nancing options are available, and there are
not enough skilled workers to oversee the design, construction and wiring.
Even after the households in our study had
paid in full for their electricity connections, it
took about seven months for electricity to ow
for the rst time. Once connected, households
experience regular blackouts due to a shortage
of maintenance sta and materials.
Some argue that decentralised technologies such as solar microgrids and lanterns are
the solution to these problems. Yet no industrial country has ever powered its economic
growth with solar lanterns.
While decentralised generation may
be cost-eective for a small number of isolated rural communities, it can never reap
the massive economies of scale of a national
power grid.
Energy infrastructure is long-lived, so the
choices that Kenya and other African countries make in the next decade will have major
implications for both their economic development and global climate change.
Written in collaboration with Catherine
Wolfram, professor of Business Administration at the University of California, Berkeley
and Francis Meyo, a research co-ordinator at
Innovations for Poverty Action.
12
NEWS INDEPTH
Failed Financial Times bid shows Axel Spinge

m caught between tadition and ambition
MEDIA Japans Nikkei bought the premier
business newspaper for Sh130bn from Pearson,

Sh11bn more than Springer was prepared to spend
The headquarters of
the Financial Times
newspaper in London.
A Japanese media
house has bought the
paper. AFP
xel Springers failure to clinch a

deal to buy the Financial Times
lengthens a line of setbacks in a
decade-old quest by Germanys biggest
news publisher to expand abroad. Once
again, cautious bidding practices cost it
the prize, revealing a complex dynamic
within the family-controlled company,

which is best known for its Bild tabloid
but which calls itself a digital powerhouse
with international potential.
The last-minute loss to Japans Nikkei
of a newspaper Axel Springer had coveted
for years was clearly a blow to its management, but for some investors it was a
relief, and not just in hindsight.
Worse than not expanding internationally would be Springer overpaying
for an asset, one top 10 investor told
Reuters. In that respect, shareholders
gave a clear signal last week.
Axel Springer shares dropped two percent on reports it was bidding for the FT,
but recovered that loss and ended the day
higher after the company said it would
not buy it last Thursday.
Japans Nikkei bought the premier
business newspaper for $1.3 billion
(Sh130 billion) from Pearson, just Sh11
billion more than Springer was prepared
to spend, according to a person familiar
with the talks. The company declined to
comment.
Springer CEO Mathias Doepfner, a
former journalist at Frankfurter Allgemeine Zeitung and editor-in-chief at Die
Welt, had long expressed the wish to buy
a big English-language title.
Two people familiar with the talks
said ultimately, the price was too high
for a company with a market capitalisation of ve billion euros (Sh555 billion),
a conservative bidding strategy and aversion to debt.
Financial prudence has been key ever
since Doepfner was appointed in 2002 by
A commuter reads Japans business newspaper, the Nikkei, in Tokyo last week. British
publisher Pearson said it had agreed to sell the Financial Times to Japanese media group
Nikkei. FILE
Friede Springer, widow of founder Axel
who built the company in West Berlin
soon after World War Two.
Doepfner doesnt do anything he has
not rst calculated, so he was reluctant
to counter the higher bid, one person
familiar with the talks said.
The 72-year-old Friede is a hands-on
shareholder and vice-chair of the supervisory board, who sees it as her task to
protect the legacy of her late husband,
according to German media, and is very
close to Doepfner.
Their relationship is described by
some Axel Springer insiders as like mother and son. In 2012, she gave Springer
shares worth almost $82 million (Sh8.2
billion) to Doepfner, at the time two per

cent of all outstanding shares. Doepfner
now owns 3.1 per cent of the rm.
Friedes involvement dates back to
the 1980s, when she inherited about
a quarter of Axel Springer shares. The
Springer familys former nanny who had
become the publishers fth wife had to
ght her corner with the German media
elite shareholders including mogul Leo
Kirch and the Burda family.
After buying out other shareholders
and taking control of the publisher, Friede
vowed she would never put herself in such
a position again, a former Axel Springer
worker said. When Doepfner took over,
he had three key strategies: rst bring
Japanese media
The EastAfrican will on August 8th 2015, carry
an informative feature focusing on;
Bridging the digital divide with high speed
internet 4G LTE.
How to minimize costs of 3G and boost usage
of data.
The Mobile Money opportunities and reaching
the unbanked.
Optimizing performance through Cloud
services and dedicated hosting.
Unlocking growth through broadband rollout
and affordable access.
Japanese media giant Nikkeis surprise acquisition of the Financial Times for $1.3 billion underscores its goal to be the
voice of Asia on economic aairs as part of a broader Internet-driven global expansion.
But the unlikely cross-border marriage Japanese media
rarely venture overseas and are routinely criticised as timid in
pursuit of investigative news has sparked concerns about
editorial independence at the storied salmon-pink business
paper founded in 1888.
The merger of the Financial Times and Nikkei will give
the group a major international presence in the media sector,
the Japanese paper said in its Friday edition, touting it as the
countrys biggest-ever foreign media acquisition.
President and CEO Naotoshi Okada said on the Nikkeis
website: Our goal is nothing short of making Nikkei the leading media voice in Asia.
In Japan, the Nihon Keizai Shimbun or Nikkei daily
is a must-read for executives and has a strong track record
of nancial scoops.
About 2.7 million copies of its morning edition are printed
daily while the afternoon version numbers 1.4 million copies.
13
NEWS INDEPTH
the company back on track after years of internal unrest and operational setbacks, then make
the transition from print to digital and after that
expand internationally.
But irtations with global media brands have
so far remained just that. Last year, Springer
walked away from buying US publisher Forbes,
which was sold to an Asian investor consortium
in a deal that valued the prestigious company at
$475 million (Sh47.5 billion).
A decade ago, it looked at British titles the
Daily Telegraph or the Daily Express but soon
backed out.
Earlier this month Springer was reported
to be discussing a possible tie-up with German
broadcaster ProSiebenSat.1, which is about twice
the size of Axel Springer.
But a day later Springer issued a statement
saying Friede would not give up control, and later
ProSiebenSat.1 and Axel Springer announced a
project for digital start-ups but said they had no
further tie-up plans.
Buying a trophy title

Springer shares rose 1.5 per cent and those of
ProSiebenSat.1 were up 1.9 per cent, outperforming a 0.2 per cent weaker German midcap index
and very close to the high they hit when news of
the tie-up broke.
Instead of buying a trophy title, Axel Springer
has taken stakes in nancial blog Business Insider and US youth news site Mic.com, and is a
co-owner of the European edition of Politico.
In the rst quarter, such digital products, especially classied ads, accounted for more than
60 per cent of company sales and almost threequarters of core prot.
Investors have rewarded the digital push with
a 75 per cent rise in the share price over the past
ve years, making Friede one of the richest people in Germany.
In May, news website Re/code reported Axel
Springer was in advanced discussions with AOL
to spin o its agship Hungton Post content
unit, citing numerous sources.
AOLs new owner Verizon has since said it will
not sell. Axel Springer declined specic comment
Tsuneo Kita (right), the chairman of Japans Nikkei newspaper speaks as company president Naotoshi Okada looks on at a press conference in Tokyo last week.
British publisher Pearson said it had agreed to sell the Financial Times t o Nikkei for $1.3 billion (Sh130 billion). AFP
on its acquisition strategy but the statement on
Friedes plans to retain control referred to a plan
to transform into a so-called KGaA or partnership
limited by shares, which would allow Springer
to raise more capital and grow while protecting
Friedes position.
To proceed, it would need approval at next
Aprils AGM. An Axel Springer manager, who
declined to be identied, said the price for the FT
was too high but added such an asset only comes
to market once in a few decades.
DEAL
For Nikkei it represented a chance to move

beyond a agging domestic market. The $1.3
billion FT price tag represented roughly a 35
times multiple for its core earnings. That is three
times more than the value of Axel Springer shares,
which trade at 11 times earnings, broadly in line
with publishing peers.
Why on earth was Axel Springer management preparing to buy a trophy asset for a silly
price... when it touts itself as investing in fastgrowing digital assets? brokerage Berenberg
asked after Nikkeis winning bid was announced.

A person familiar with Springer managements
thinking said Doepfner would continue to focus
on journalism and not make material change to
its strategy.
If it was up to the nancial markets, Springer
would have to sell o anything that is journalism
and focus on classied ads, the person said. But
the soul of the company is journalism and without
journalism there wont be Axel Springer.
- REUTERS
AFP
giant Nikkei going global with takeove of FT
Copies of the Financial Times newspaper. AFP

The FT deal adds an internationally known
brand and about 225,000 print copies to the
Nikkeis arsenal as it eyes a battle with business
powerhouses the Wall Street Journal and Bloomb-
erg. Online, the Nikkei-FT marriage would catapult the group past the New York Times 910,000
Internet subscribers. Like the FT, the Nikkei is
seen as a business bible. Its 140-year-old history
is inextricably linked with Japans industrial sector and once-booming economy, and the Tokyo
Stock Exchanges benchmark index -- the Nikkei
225 -- takes its name from the group.
The move into magazines, books and television, among other sectors, has left the Nikkei
on solid nancial ground, even as many major
media struggle with their nances in the age of
the Internet.
Meanwhile, the FT has earned a reputation
as one of the most nimble media giants in the
digital age, building a giant subscriber base and
successfully attracting advertisers because of its
upmarket readership.
Its a good story for the Nikkei buying the
FT oers the experience online and a foreign subscriber base in the dominant language in the world,
English, said Yasuhiro Matsuzaki, deputy chief
editor at the rival media group Tokyo Keizai.
The Nikkei is already the most advanced Japanese newspaper in the digital domain but it takes
time to get subscribers, he added.
However, the takeover could make for a rocky

cultural exchange. The FT, among other media,
has strongly criticised the Nikkeis apparently
privileged access to earnings results and other
company news, often weeks before it is ocially
announced. And the Japanese press is routinely
accused of being conict shy and self-censoring
to avoid oence. That issue came into stark focus
during the Fukushima nuclear crisis when some
viewed the media as soft in its criticism of company and government ocials.
Worrying. Nikkei is basically a PR machine for
Japanese biz; it initially ignored the 2011 Olympus
accounting scandal (which FT broke), a New York
Times reporter wrote on Twitter, referring to one
of Japans worst ever accounting scandals.
Goushi Kataoka, an economist at Mitsubishi UFJ Research, was blunt in his assessment
of the deal.
Im worried that the Financial Times could
become like the Nikkei, and I hope that will not
be the case, he said.
14
REGIONAL NEWS
CONSERVATION Professional groups say their industry positively aids protection of animals
Huntes ght back as stom

ages ove slaughte of lion
Bucking against international outrage over the killing of Cecil the lion
in Zimbabwe, professional hunters
argue that their industry follows strict
rules aimed at preserving wildlife and
supporting local people.
While many hunters acknowledge
Cecil was likely killed illegally, they
say the vitriol directed towards them
is misplaced.
Animal lovers tend to forget the
benet that can be derived by properly managing a resource, said Emmanuel Fundira, president of the
Safari Operators Association of Zimbabwe (SOAZ).
They cant see it because their
focus is on the sentimental value of
trying to protect the animal.
Its a dierent ball game altogether in Africa because the social benets
from hunting are huge.
Zimbabwe issues an annual quota
approved by CITES (the Convention
on International Trade in Endangered
Species of Wild Fauna and Flora) for
the number of lions that can be hunted -- not usually more than 30, according to Fundira.
A hunter must have a permit, must
only hunt in daylight, on private land,
or approved state land, and be accompanied by a park ranger. No hunting is
allowed in national reserves.
Usually, a lion hunt costs from
$60,000 to $120,000 (Sh6 million
to Sh12 million) and takes place over
seven to 21 days. Under certain conditions, bait is allowed.
The weapon of choice is a rie, but
a select few pay a premium for a bow
Professional Zimbabwean hunter Theo Bronkhorst (right) and his defence lawyer
Givemore Muvhiringi leave the Magistrates Court in Hwange last week after
proceedings on poaching charges. AFP
and arrow kill.
necessary permits. Hunting fees are
You pay an extra
meant to be ploughed
back into maintenance
$3,000 (Sh300,000) to
of the land and to pay
hunt using a bow and arAnimal loves
row, Fundira explained,
local sta, though
adding that such hunts
transparency is often
tend to foget
were extremely exceppoor.
the benet that
Hermann Meyeridtional.
can be deived by ricks, who heads the
Cecil was allegedly
lured from a national popely managing Professional Hunters
Association of South
reserve outside regular
a esouce
Africa, said the case
hours and shot with a
EMMANUEL FUNDIRA, PRESIDENT OF
of Cecil was unreprebow and arrow.
It is unclear whether SAFARI OPERATORS ASSOCIATION sentative.
One must not conthe hunter, American
fuse the benets that hunting brings
dentist Walter Palmer, had all the
to communities across Africa with an

illegal activity, such as what appeared
to have been the case in Zimbabwe,
Meyeridricks said.
If ever we hear of non-adherence
we will pass it on to the relevant authorities, he said.
Meyeridricks believes hunting
can even contribute to conservation eorts.
The idea is that hunting positively aids conservation by providing a
reason to keep a healthy number of
lions... alive, he said.
The hunter admitted that while the
Cecil debacle is regrettable, it was in
some ways inevitable.
You have your rogue outtters
or elements in every industry, and
the hunting industry is not any different, he said.
But conservation activists disagree
that the case of Cecil is unique, highlighting the decline of lion population
on the continent and condemning the
hunting industry for facilitating Cecils
slaughter. The loss of Cecil is absolutely reprehensible, and sadly, this
case is not an anomaly, Luke Hunter,
the president of Panthera, a coalition
of big cat academics dedicated to conservation, said this week.
Recent surveys suggest that in the
past two decades lion numbers have
decreased from 30,000 to around
20,000, according to Panthera.
Many people around the world
are unaware that what happened to
this lion is happening all over Africa,
Hunter said.
Illegal killing of lions is a real
threat to the species survival.
Chris Mercer, founder of Campaign Against Canned Hunting, a
South African non-prot wildlife
charity, described Cecils death reputedly 40 hours after rst being shot
as a typical lion bow hunt.
-AFP
Reality TV hooks Tanzania as women win fame, fam tools

BY KATY MIGIRO
While sex, ghts and confessionals

draw viewers to most reality television shows, its the revolutionary
portrayal of women as heroes that
makes one in two Tanzanians watch
a homegrown series aimed at raising
the prole of women farmers.
More than 3,000 women vied to
star in the fourth series of Mama
Shujaa wa Chakula, or female food
heroes in Kiswahili, which starts
lming on August 1.
The 18 women who are selected
will live together for three weeks on
a specially constructed farm, their
every move scrutinised by more than
20 million viewers in the east African country.
The audience will vote for their

favourite, who wins 20 million Tanzanian shillings (Sh975,000), as well
as farming and shing tools.
But the womens real prize is their
new clout as local celebrities.
Their status is elevated at the
community level, said Eluka Kibona,
Tanzanian advocacy and campaigns
manager for Oxfam, which came up
with the concept of the show.
For example, Anna Oloshuro, who
took part in the 2011 series, was invited to join a mens discussion in
her village over who should stand
for a local political position.
Such a gesture was something
previously unheard of in her Maasai
culture, where women are regarded
as mens property.
Their image of who a woman is

and what a women can do had been
transformed, said Kibona. Her
opinion was valued.
On the model farm, an hour outside Tanzanias largest city, Dar es
Salaam, the women compete in farming tasks, a treasure hunt, drawing
up a village development plan and
setting up rival political parties to
vie for election.
Experts also come to talk to them
about issues like domestic violence
and nance.
Most of us have that background
and most of us can relate to the women, said Kibona.
Oxfams ultimate goal is to promote new agricultural practices
and give greater voice to Tanzanias
women farmers.
Women make up 75 per cent of
Tanzanias farmers but they often live
in poverty and their contribution is
rarely valued, the charity says.
The World Bank estimates that
giving women farmers around the
world equal access to resources,
such as fertiliser and land, could
increase farm yields by up to 30 per
cent. This would mean up to 150
million fewer people going to bed
hungry every day.
After the show, each contestant
goes home with equipment and technical support to introduce the new
techniques she has learned to her
own farm and village, Oxfam said.
-REUTERS
BRIEFING
GABORONE
Botswana funds ght against
worst drought in 30 years
Botswana has allocated emergency funds
in response to the worst drought conditions
in 30 years with agricultural land badly hit
by the lack of irrigation, the government
said.
A special budget of about $44 million
(Sh4 billion) was passed by parliament on
Wednesday after President Ian Khama declared a general countrywide drought, the
rst since 1984.
In general it is a bad year. That is why we
can not categorise the drought by each
village and town like we have in the past,
deputy agriculture minister Fidelis Molao
told AFP.
BUJUMBURA
Burundi opposition leader
takes top parliament post
Burundis main opposition leader Agathon
Rwasa has been elected as deputy head
of the national parliament, despite having
condemned recent elections and supported months of civil unrest. Rwasa, who has
denounced the third consecutive term win
by President Pierre Nkurunziza, had said
earlier this week that he intended to play
the game in order to try and help nd a solution to the countrys political crisis but
has already been branded a traitor by other opposition gures. In a parliament last
week, Rwasa was elected as the national
assemblys rst deputy president, winning
108 votes out of 112 thanks to support from
Nkurunzizas ruling CNDD-FDD party.
NEW YORK
Child labour rises in West
Africa on cocoa demand
The number of children working on cocoa
farms in the worlds top producer Ivory
Coast is on the rise as production climbs,
a Tulane University report showed, ramping up pressure on chocolate companies
to ethically source beans. Child labour on
cocoa farms in Ghana, the worlds second
biggest producer, has dropped. Based on
todays numbers, roughly 1.5 million children will have to be removed from hazardous work to reach the 2010 Framework of
Action target by 2020, said the report.
ASMARA
Eritrea urges UN help bring
human trafckers to justice
Eritrea has urged the UN Security Council
to help bring human trafckers to justice
and said smuggling groups, not human
rights abuses, were causing an exodus of
migrants to Europe. About 5,000 people
ee Eritrea each month, the United Nations
High Commissioner for Refugees says.
Thousands have been picked up in the
Mediterranean trying to cross to Europe.
The principal objective of this organised
crime is to prevent Eritrea and its people
from defending their sovereignty by dispersing and debilitating their human resources, Eritreas foreign ministry said in a
statement
p.16/17
15
PRODUCTION Bata
outsources shoes stitching

services
MARKETING
p.18 ICT
from associating
with football
iHub meeting raises concern

over low cyber crime awareness
p.17 How brands gain
CORPORATE EVENTS | NEW PRODUCTS & SERVICES | EXECUTIVE APPOINTMENTS | MARKET TRENDS
Equity Bank joins list of

bands seeking fotune
outside coe business
TECH Equitel rst in the continent to offer
THE BIG STORY
mobile banking suite without new infrastructure

BY SILVIA MWENDIA
quity Bank Group has launched

a mobile phone service Equitel
as brands warm to moving across
sectors to oer services that extend their
markets beyond their core businesses.
Equitel becomes the rst platform in
Kenya and Africa to oer a mobile phone
operation and full mobile banking suite
without building new mobile phone infrastructure. The bank says the move
will promote greater access to banking in
Kenya, which stands at 53 per cent of the
population.
The unveiling of this new platform is
part of our 30-year journey of promoting
nancial inclusion. Our aim is to raise the
number of Kenyans with access to banking services to 90 per cent and above,
said James Mwangi, Equity Bank Group
CEO.
Equitel SIM cards and phone services
oer voice, data and SMS services, as well
as mobile payments and banking services
that are interoperable with other systems such as Airtel Money and MPesa. The launch of Equitel comes
with the mobile phone operation having reached one million users, and
represents a near-mirror strategy
on Safaricoms own transition from
phone to nancial services.
Successful globally
Traditionally dealing in telecom
services such as voice and SMS, Safaricom branched out in March 2007
to enter the nancial services sector
through the revolutionary mobile
money transfer service, M-Pesa.
This year, for instance, Safaricom
posted a record Sh31.9 billion in aftertax prot that ended in March, with
M-Pesa contributing 20 per cent of
the total Sh163.4 billion in revenue.
These gures represent outstanding
growth from the Sh12.2 billion pretax prot made in 2006, just before
the launch of M-Pesa.
The same phenomenon of brands

moving into other sectors has been
successful globally and a winning
strategy for many multinationals.
An example is Nike, traditionally
known as a shoe company, which has
in the past few years been breaking
into the digital world. In 2013 the
company launched FuelBand, a highend electronic bracelet that measures
wearers physical activity.
Such moves into high technology
have driven outstanding growth for
the company, at more than 50 per cent
year-on-year prot growth.
Another company that has
achieved super growth by stepping outside its core competence is
streaming media company, Netix.
Since its inception, its core business
has expanded from streaming video
Airtel Africa
CEO Christian
de Faria (left)
and Equity
BankGroup CEO
James Mwangi
during the
launch of Equitel on July 20.
FILE
content to include original content.

In Africa, fast-food specialist Famous
Brands is another company that has experienced prot benets after diversifying
from its core business, which was mainly
franchises in casual dining restaurants
such as Steers, Wimpy, and Debonairs
Pizza.
Famous Brands has now diversied
into manufacturing, delivering a yearon-year revenue increase of 24 per cent.
Their manufacturing division now spans
from sauce and spice to meat processing
factories and even ice-cream plants.
As brands the world over now take to
moving across sectors, such moves are
enabling them to achieve rapid prot
growth far outperforming many of their
peers.
-AFRICAN LAUGHTER
BRIEFING
Nairobi
Nairobi
Nairobi
Mombasa
Airtel connects 23
schools to Internet
NBK opens Yaya

shopping branch
15 banks to lend to
Brookside farmers
Kebs briefs agents

on quality mark
Airtel Kenya has connected 23 more

schools to the Internet for free in July as
part of its ongoing connection project.
The students in these schools now join
hundreds of thousands of students who
are beneting from the unlimited amount
of educational material and information
available online hence broadening their
learning. Airtels Internet for Schools
project supports schools across the country.
National Bank of Kenya (NBK) has opened

a premium branch at Yaya shopping mall
targeting high net-worth customers.
The branch was launched on Wednesday
by NBK managing director Munir Sheikh
Ahmed at an event also graced by the
Speaker of the Senate Ekwe Ethuro and
the banks chairman Mohammed Abdirahman. It will feature new non-traditional
banking considerations with access to private meeting rooms.
National Bank MD Munir Sheikh

Ahmed Senate Speaker Ekwe Ethuro
during launch of Yaya branch. COURTESY
15 banks and co-operative societies have

signed up to offer loans to dairy farmers
contracted by processor Brookside using
milk delivery statements as collateral.
Under the deal, the nancial institutions
will recover the loans from payouts made
by the processor through accounts held by
farmers in the institutions. The processor
will issue recommendations to banks conrming that an applicant is a contracted
raw milk supplier.
The Kenya Bureau of Standards (Kebs)

met importers and clearing agents for a
brieng on the newly-introduced secure
quality mark for all imported products.
Kebs managing director Charles Ongwae
said the new secured mark will be formally introduced in the market on September 1.
He urged importers to start applying for
the new secured marks immediately.
16
Bata outsouces shoes

stitching sevices, GE in
skills building ventue
CORPORATE SCENE
MARKETING
How brands can gain

from associating with
football in new season
BY GEORGE LUTTA
PACTS Shoemakers deal with Stitch World expected to
increase production and revenue for both companies

BY VICTOR AMADALA
From left: Ethiopian Airlines Group CEO Tewolde Gebre Mariam, US President Barack Obama, Ethiopian
Prime Minister Hailemariam Desalegn and Foreign Affairs minister Tedros Adhanom in Addis Ababa on
July 29. COURTESY
Butali Sugar Mills
and New Holland
Agriculture ofcials
when New Holland
delivered 50 tractors
to the sugar miller
at its premises in
Western Kenya
recently. COURTESY
Dr George Njenga (left),

Strathmore Business
School dean, Safaricom
CEO Bob Collymore,
Safaricom Business
GM Sylvia Mulinge and
Prof John Odhiambo,
Strathmore University
vice chancellor, toast
during the launch of
the Safaricom Business
Journalists Fellowship
Programme at the
university on Friday.
ata Kenya has moved to leverage its

market position and expand its sales
through outsourcing manufacturing
services.
Bata has partnered with Stitch World Design to operate an associate business unit
(ABU) stitching Bata Safari Boots, in a deal
that is expected to increase production levels
and revenues for both companies.
Bata Kenya will provide Stitch World
a design plant based in Nairobi with
cut components for sewing. The rm will
return stitched uppers back to Bata ready
for assembly.
The partnership will see Stitch World
sew 1,800 Safari Boot uppers per day thereby enabling Bata to meet the high demand
for the iconic shoe while still maintaining
standards.
Stitch World will use their experience
and skills in sewing and we will now be left to
concentrate on our core competencies the
nishing process. This kind of specialisation
will ensure that the end product is perfect
for the customer, said Bata Kenya company
manager Alberto Errico.
The partnership means that Bata Kenya
now has a total of nine ABU arrangements in
a bid to cut down on production costs such as
labour while providing local entrepreneurs
with manufacturing opportunities.
As Bata oers manufacturing wings to
local rms, General Electric Africa has part-
nered with Gearbox, a local incubation prototype, to oer a programme to help build a
skilled manufacturing workforce and drive
entrepreneurial development in Kenya.
The programme developed together
with the University of Nairobi, Technical
University of Kenya, Seven Seas Technologies and a Pan African IT company is expected to mould a formidable workforce to
spearhead the growth of the countrys manufacturing sector.
Dubbed the GE Garages Space, the programme is targeting engineering students
from the two learning institutions, who will
be hosted by Gearbox, while GE will provide
the necessary equipment.
The University of Nairobi, Technical University of Kenya and Seven Seas Technologies
will provide input to the programme as well
as training facilities.
Economic pillar
GE has run similar programmes elsewhere,
starting in America in 2012, to reinvigorate
interest in invention, innovation, and manufacturing, and has since spread to other parts
of the world, with last years workshops held
in Nigeria.
Programmes include custom projects,
speaker sessions and workshops amidst a
fully equipped advanced manufacturing
space, including hardware such as CNC mills,
laser cutters, 3D printers, injection moulders, Arduino kits and much more, said Jay
Ireland, President and CEO GE Africa. The
FILE
A Bata shop attendant displays Safari Boots for sale at a Nairobi shop. FILE
programme is expected to bridge a skills gap

in the Kenyas industrial sector. According to
the National Manpower Survey, the percentage of vacant posts in the transport sector
alone is two to eight per cent, forcing companies to seek foreign expertise resulting in
higher production costs.
Eorts by local and international brands
to promote manufacturing growth are set
to breathe life into a sector that currently
contributes just 11 per cent to the countrys
GDP, compared to the service industry which
contributes up to 53.3 per cent, according to
the World Bank economic report.
McKinsey Global Institutes report, The
Global Growth and Innovation Era, describes
manufacturing as the strongest economic pillar that denes the fate of an economy.
It explains that although the manufac-
turing sector has evolved in ways that have

created an orthodox view that manufacturing and services are completely separate and
fundamentally dierent sectors, the manufacturing sector provides fodder for the services
sector, as both its buyers and suppliers.
It cites an example from the United States
where every dollar of manufacturing output
requires 19 cents of services. Moreover, in
some manufacturing industries, more than
half of all employees work in service roles,
such as oce-support sta.
Although the World Bank report 2015 touted Kenya as the fastest growing economy in
sub-Saharan Africa, with growth projected at
six per cent in 2015, it emphasised the need to
increase the competitiveness of its manufacturing sector. A strong manufacturing sector
will create more employment, especially for
young people, increase exports and reduce

the countrys external vulnerability from a
widening account decit, said report read.
But the corporate sector is now moving to
encourage the growth of both cottage and
local mechanical industries to exploit products from other ventures like agriculture, and
enhance the export of processed products.
The manufacturing sector growth was 4.3
per cent in 2014, a percentile point lower
that the general economic growth, which
was 5.4 percent.
According to reports, Kenyas manufacturing sector directly employs over 250,000
people, while an additional 1.4 million people
are employed through the supply and distribution chain, representing 13 per cent of the
countrys total employment.
- AFRICAN LAUGHTER
DIANA NGILA
Entepeneuship tio inks deal to speahead Obamas Sh100 billion global poject
Interior secretary
Joseph Nkaissery
(left) signs the
visitors book during
the rst East African
Counter Terrorism
Conference held
in Nairobi recently
and sponsored by
Securex Agencies
(K) Ltd. With him are
Brian Sagala, the
Securex marketing
and communications
manager, and
Mildred Anyango
(right), a sales
representative at the
rm. COURTESY
BY BD REPORTER
hree organisations have signed up to

lead US President Barack Obamas
initiative to promote global entrepreneurship through a $1 billion fund whose
birth was announced at the Sixth Global
Entrepreneurship Summit in Nairobi.
The Global Entrepreneurship Network,
the Entrepreneurs Organisation (EO) and
the Tony Elumelu Foundation formally committed to co-chair the $1 billion (Sh100 billion) Spark Global Entrepreneurship initiative in Mr Obamas presence.
Spark seeks to mobilise like-minded organisations, companies and investors to generate more than $1 billion dollars in private
investment for emerging entrepreneurs by
the end of 2017.
Jonathan Ortmans, president of Global
From left: GEN chairman Jonathan Ortmans,

US President Barack Obama, Nigerian
billionaire Tony Elumelu and Africa Growth
Initiativechairman Sriram Bharatam. COURTESY
Entrepreneurship Network, Sriram Bharatam of EO Africa Growth Initiative and Tony
Elumelu, founder of the Tony Elumelu Foundation inked the deal during at the summit
in Nairobi.
The world is full of nascent entrepreneurs with brilliant ideas but they need
stronger ecosystems to help them unleash
those ideas and grow them into game-changing startups, said Mr Ortmans.
The list of companies that have signed
up to support the initiative includes Citi,
EY, GE, Google and IBM.
Two African companies, Rendeavour,
the continents largest urban land developer, and SkyPower, the largest provider
of utility-scale solar power projects in the
world, are also in the list.
Mr Elumelu said entrepreneurship remains the missing link in Africas development and needed strong support if the
continent is to create wealth and reduce
poverty.
The actions of just one entrepreneur
send ripples across a community and en-
trepreneurship lifts people permanently

out of poverty and creates social wealth,
he said.
We all know entrepreneurship, anywhere in the world, is not easy nor is success guaranteed. All stakeholders the private sector, governments, NGOs and donors
must make a commitment to use their
respective powers to address the hurdles
facing African entrepreneurs. That is what
Spark is all about.
Spark taps into the growing involvement
of government programmes in helping entrepreneurs start and scale new rms.
US vice president Joe Biden announced
the Spark initiative at the 2014 Global Entrepreneurship Summit in Morocco.
The initiative seeks commitments from
organisations and individuals willing to
start the spark by collaborating and con-
tributing resources, networks, data and ideas

to multiply eorts and help founders start
and scale new rms.
We are excited to leverage our in-market
presence in nearly 50 countries to support
Spark, inspire todays entrepreneurs and foster the next generation globally, said Vijay
K. Tirathrai, CEO of Entrepreneurs Organisation, adding that the Spark is a natural extension of his organisations commitment to
supporting enterprise.
In less than two years, EO East Africa has
grown to more than 60 members. Thats a
testament of the demand for a peer-to-peer
entrepreneurship platform to Learn and
Grow in East Africa. Africa has over 300
members from across six chapters and in
the next three years we are working towards
doubling this number and add another 10
chapters, said Sriram Bharatam.
Football is back! The European

football season is back ! Wait!
The English Premier League is
back! Yes the EPL kicks o next
weekend and its time for folks to
renew their DStv subscriptions or
simply troop to the nearest pub.
Football is the most universal
of passions and an eective channel for brands looking to connect
with target audiences through
what they truly love.
Brands benet greatly from
associating themselves with
football because active fans are
more likely to recommend and
buy brands involved in their
passion. Research suggests that
brands improve their image as
well as encourage trial by associating itself with a key passion.
However, its not as straight
forward as it seems. Brands need
to rst understand the motivation and behaviours of football
fans in order to connect with
them more eectively.
Some growing trends amongst
football fans is mastery and social connection mastery here
is the interest in learning and understanding the details behind
team performances and player
stats, transfers, formations and
such like details.
This know-how dovetails well
with social connection which is
the desire to create or enhance
relationships with other football
fans by feeling connected to a
community through the teams
they support. This manifests
itself best on social media, especially through the creation of
WhatsApp groups.
This new trend owes its origins to the digital revolution.
Due to the boom in the
number of ways one can get access to football related content
thats share worthy. This has given birth to a new age of passionate fans. Football is not just what
happens on the TV screen for 90
odd minutes. Its a lifestyle!
This level of passion and engagement presents brands with
a new way to connect. Brands
should look to become the catalysts of engagement by nurturing
the right conditions that facilitate content sharing that forms
the basis of their story telling.
A brand could facilitate so-
cial connection by developing

an online platform where opinions, new information and even
jokes are shared through partnerships to deliver content.
Football is an extremely eective marketing tool for brands
looking to connect with people
but it is not leveraged to its optimal levels online and oine.
The key lies in understanding
this passion and what drives it in
terms of behaviour, attitude, and
perceptions in a way that can be
leveraged by a brand continuously through valuable content
and experiences.
All this is second screen stu.
However, there might be some
digital success by moving away
from second screening and focusing on reaching consumers
before, between and after their
favourite teams have played.
Make no mistake providing
asynchronous extra content is
the way to go as we have stated
earlier.
However passionate fans actually pay attention to the rst
screen when their favourite
teams are playing. So why try
to distract them on the second
screen? When watching an engrossing game, fans loathe taking their eyes o the primary
screen. This simply means that
they generally are not too keen
on fully engaging with its secondscreens content. Its not that people wont like what you will be
putting out.
So what to do? During live
football matches, focus on the
rst screen.
Sponsorship has traditionally been a simple way of forging
connections. But theres a caveat!
In order to maximise return on
your brands media investment
in the most eective manner,
one needs to create clear linkages between the brand and the
sponsored property.
A sponsorship property on
TV should: rst, deliver currency, that is, the brands planned
reach in a continuous manner
and secondly, have persuasive
impact or brand value enhancement. This is the real value we
receive from sponsorship over
and above the regular brand exposure and visibility.
Mr Lutta is the chief strategy ofcer at ScanGroup.
17
16
Bata outsouces shoes

stitching sevices, GE in
skills building ventue
CORPORATE SCENE
MARKETING
How brands can gain

from associating with
football in new season
BY GEORGE LUTTA
PACTS Shoemakers deal with Stitch World expected to
increase production and revenue for both companies

BY VICTOR AMADALA
From left: Ethiopian Airlines Group CEO Tewolde Gebre Mariam, US President Barack Obama, Ethiopian
Prime Minister Hailemariam Desalegn and Foreign Affairs minister Tedros Adhanom in Addis Ababa on
July 29. COURTESY
Butali Sugar Mills
and New Holland
Agriculture ofcials
when New Holland
delivered 50 tractors
to the sugar miller
at its premises in
Western Kenya
recently. COURTESY
Dr George Njenga (left),

Strathmore Business
School dean, Safaricom
CEO Bob Collymore,
Safaricom Business
GM Sylvia Mulinge and
Prof John Odhiambo,
Strathmore University
vice chancellor, toast
during the launch of
the Safaricom Business
Journalists Fellowship
Programme at the
university on Friday.
ata Kenya has moved to leverage its

market position and expand its sales
through outsourcing manufacturing
services.
Bata has partnered with Stitch World Design to operate an associate business unit
(ABU) stitching Bata Safari Boots, in a deal
that is expected to increase production levels
and revenues for both companies.
Bata Kenya will provide Stitch World
a design plant based in Nairobi with
cut components for sewing. The rm will
return stitched uppers back to Bata ready
for assembly.
The partnership will see Stitch World
sew 1,800 Safari Boot uppers per day thereby enabling Bata to meet the high demand
for the iconic shoe while still maintaining
standards.
Stitch World will use their experience
and skills in sewing and we will now be left to
concentrate on our core competencies the
nishing process. This kind of specialisation
will ensure that the end product is perfect
for the customer, said Bata Kenya company
manager Alberto Errico.
The partnership means that Bata Kenya
now has a total of nine ABU arrangements in
a bid to cut down on production costs such as
labour while providing local entrepreneurs
with manufacturing opportunities.
As Bata oers manufacturing wings to
local rms, General Electric Africa has part-
nered with Gearbox, a local incubation prototype, to oer a programme to help build a
skilled manufacturing workforce and drive
entrepreneurial development in Kenya.
The programme developed together
with the University of Nairobi, Technical
University of Kenya, Seven Seas Technologies and a Pan African IT company is expected to mould a formidable workforce to
spearhead the growth of the countrys manufacturing sector.
Dubbed the GE Garages Space, the programme is targeting engineering students
from the two learning institutions, who will
be hosted by Gearbox, while GE will provide
the necessary equipment.
The University of Nairobi, Technical University of Kenya and Seven Seas Technologies
will provide input to the programme as well
as training facilities.
Economic pillar
GE has run similar programmes elsewhere,
starting in America in 2012, to reinvigorate
interest in invention, innovation, and manufacturing, and has since spread to other parts
of the world, with last years workshops held
in Nigeria.
Programmes include custom projects,
speaker sessions and workshops amidst a
fully equipped advanced manufacturing
space, including hardware such as CNC mills,
laser cutters, 3D printers, injection moulders, Arduino kits and much more, said Jay
Ireland, President and CEO GE Africa. The
FILE
A Bata shop attendant displays Safari Boots for sale at a Nairobi shop. FILE
programme is expected to bridge a skills gap

in the Kenyas industrial sector. According to
the National Manpower Survey, the percentage of vacant posts in the transport sector
alone is two to eight per cent, forcing companies to seek foreign expertise resulting in
higher production costs.
Eorts by local and international brands
to promote manufacturing growth are set
to breathe life into a sector that currently
contributes just 11 per cent to the countrys
GDP, compared to the service industry which
contributes up to 53.3 per cent, according to
the World Bank economic report.
McKinsey Global Institutes report, The
Global Growth and Innovation Era, describes
manufacturing as the strongest economic pillar that denes the fate of an economy.
It explains that although the manufac-
turing sector has evolved in ways that have

created an orthodox view that manufacturing and services are completely separate and
fundamentally dierent sectors, the manufacturing sector provides fodder for the services
sector, as both its buyers and suppliers.
It cites an example from the United States
where every dollar of manufacturing output
requires 19 cents of services. Moreover, in
some manufacturing industries, more than
half of all employees work in service roles,
such as oce-support sta.
Although the World Bank report 2015 touted Kenya as the fastest growing economy in
sub-Saharan Africa, with growth projected at
six per cent in 2015, it emphasised the need to
increase the competitiveness of its manufacturing sector. A strong manufacturing sector
will create more employment, especially for
young people, increase exports and reduce

the countrys external vulnerability from a
widening account decit, said report read.
But the corporate sector is now moving to
encourage the growth of both cottage and
local mechanical industries to exploit products from other ventures like agriculture, and
enhance the export of processed products.
The manufacturing sector growth was 4.3
per cent in 2014, a percentile point lower
that the general economic growth, which
was 5.4 percent.
According to reports, Kenyas manufacturing sector directly employs over 250,000
people, while an additional 1.4 million people
are employed through the supply and distribution chain, representing 13 per cent of the
countrys total employment.
- AFRICAN LAUGHTER
DIANA NGILA
Entepeneuship tio inks deal to speahead Obamas Sh100 billion global poject
Interior secretary
Joseph Nkaissery
(left) signs the
visitors book during
the rst East African
Counter Terrorism
Conference held
in Nairobi recently
and sponsored by
Securex Agencies
(K) Ltd. With him are
Brian Sagala, the
Securex marketing
and communications
manager, and
Mildred Anyango
(right), a sales
representative at the
rm. COURTESY
BY BD REPORTER
hree organisations have signed up to

lead US President Barack Obamas
initiative to promote global entrepreneurship through a $1 billion fund whose
birth was announced at the Sixth Global
Entrepreneurship Summit in Nairobi.
The Global Entrepreneurship Network,
the Entrepreneurs Organisation (EO) and
the Tony Elumelu Foundation formally committed to co-chair the $1 billion (Sh100 billion) Spark Global Entrepreneurship initiative in Mr Obamas presence.
Spark seeks to mobilise like-minded organisations, companies and investors to generate more than $1 billion dollars in private
investment for emerging entrepreneurs by
the end of 2017.
Jonathan Ortmans, president of Global
From left: GEN chairman Jonathan Ortmans,

US President Barack Obama, Nigerian
billionaire Tony Elumelu and Africa Growth
Initiativechairman Sriram Bharatam. COURTESY
Entrepreneurship Network, Sriram Bharatam of EO Africa Growth Initiative and Tony
Elumelu, founder of the Tony Elumelu Foundation inked the deal during at the summit
in Nairobi.
The world is full of nascent entrepreneurs with brilliant ideas but they need
stronger ecosystems to help them unleash
those ideas and grow them into game-changing startups, said Mr Ortmans.
The list of companies that have signed
up to support the initiative includes Citi,
EY, GE, Google and IBM.
Two African companies, Rendeavour,
the continents largest urban land developer, and SkyPower, the largest provider
of utility-scale solar power projects in the
world, are also in the list.
Mr Elumelu said entrepreneurship remains the missing link in Africas development and needed strong support if the
continent is to create wealth and reduce
poverty.
The actions of just one entrepreneur
send ripples across a community and en-
trepreneurship lifts people permanently

out of poverty and creates social wealth,
he said.
We all know entrepreneurship, anywhere in the world, is not easy nor is success guaranteed. All stakeholders the private sector, governments, NGOs and donors
must make a commitment to use their
respective powers to address the hurdles
facing African entrepreneurs. That is what
Spark is all about.
Spark taps into the growing involvement
of government programmes in helping entrepreneurs start and scale new rms.
US vice president Joe Biden announced
the Spark initiative at the 2014 Global Entrepreneurship Summit in Morocco.
The initiative seeks commitments from
organisations and individuals willing to
start the spark by collaborating and con-
tributing resources, networks, data and ideas

to multiply eorts and help founders start
and scale new rms.
We are excited to leverage our in-market
presence in nearly 50 countries to support
Spark, inspire todays entrepreneurs and foster the next generation globally, said Vijay
K. Tirathrai, CEO of Entrepreneurs Organisation, adding that the Spark is a natural extension of his organisations commitment to
supporting enterprise.
In less than two years, EO East Africa has
grown to more than 60 members. Thats a
testament of the demand for a peer-to-peer
entrepreneurship platform to Learn and
Grow in East Africa. Africa has over 300
members from across six chapters and in
the next three years we are working towards
doubling this number and add another 10
chapters, said Sriram Bharatam.
Football is back! The European

football season is back ! Wait!
The English Premier League is
back! Yes the EPL kicks o next
weekend and its time for folks to
renew their DStv subscriptions or
simply troop to the nearest pub.
Football is the most universal
of passions and an eective channel for brands looking to connect
with target audiences through
what they truly love.
Brands benet greatly from
associating themselves with
football because active fans are
more likely to recommend and
buy brands involved in their
passion. Research suggests that
brands improve their image as
well as encourage trial by associating itself with a key passion.
However, its not as straight
forward as it seems. Brands need
to rst understand the motivation and behaviours of football
fans in order to connect with
them more eectively.
Some growing trends amongst
football fans is mastery and social connection mastery here
is the interest in learning and understanding the details behind
team performances and player
stats, transfers, formations and
such like details.
This know-how dovetails well
with social connection which is
the desire to create or enhance
relationships with other football
fans by feeling connected to a
community through the teams
they support. This manifests
itself best on social media, especially through the creation of
WhatsApp groups.
This new trend owes its origins to the digital revolution.
Due to the boom in the
number of ways one can get access to football related content
thats share worthy. This has given birth to a new age of passionate fans. Football is not just what
happens on the TV screen for 90
odd minutes. Its a lifestyle!
This level of passion and engagement presents brands with
a new way to connect. Brands
should look to become the catalysts of engagement by nurturing
the right conditions that facilitate content sharing that forms
the basis of their story telling.
A brand could facilitate so-
cial connection by developing

an online platform where opinions, new information and even
jokes are shared through partnerships to deliver content.
Football is an extremely eective marketing tool for brands
looking to connect with people
but it is not leveraged to its optimal levels online and oine.
The key lies in understanding
this passion and what drives it in
terms of behaviour, attitude, and
perceptions in a way that can be
leveraged by a brand continuously through valuable content
and experiences.
All this is second screen stu.
However, there might be some
digital success by moving away
from second screening and focusing on reaching consumers
before, between and after their
favourite teams have played.
Make no mistake providing
asynchronous extra content is
the way to go as we have stated
earlier.
However passionate fans actually pay attention to the rst
screen when their favourite
teams are playing. So why try
to distract them on the second
screen? When watching an engrossing game, fans loathe taking their eyes o the primary
screen. This simply means that
they generally are not too keen
on fully engaging with its secondscreens content. Its not that people wont like what you will be
putting out.
So what to do? During live
football matches, focus on the
rst screen.
Sponsorship has traditionally been a simple way of forging
connections. But theres a caveat!
In order to maximise return on
your brands media investment
in the most eective manner,
one needs to create clear linkages between the brand and the
sponsored property.
A sponsorship property on
TV should: rst, deliver currency, that is, the brands planned
reach in a continuous manner
and secondly, have persuasive
impact or brand value enhancement. This is the real value we
receive from sponsorship over
and above the regular brand exposure and visibility.
Mr Lutta is the chief strategy ofcer at ScanGroup.
17
18
iHub meeting aises Unilever opens innovation competition for students

alam ove low cybe U
cime awaeness
OUTLOOK Threats to individuals and rms
projected to grow with Internet penetration

BY SANDRA CHAO-BLASTO
he AfricaHackOn Conference
held in partnership with stakeholders in technology security
at the iHub oces on Friday focused
heavily on the issue of cyber security
and crime.
Anthony Gacanja, who heads
Technology Security at Safaricom,
said that at the moment there is little awareness on the eects of cyber
crime among individuals, businesses
and even in the government.
Hackers are the immune system
of the Internet. If we didnt have hackers, there would be no one to provoke
the kind of action we see in the cyber
security space, he said
But cyber security is hard to ignore
given that the country has experienced
accelerated growth in technology with
the IT industry now contributing well
over 12 per cent of the countrys GDP
and Internet penetration now at 54.8
per cent. This poses a huge threat to
individuals and companies, with cyber criminals getting ever more creative and sophisticated.
The Communication Authority of
Kenya estimates that there were 5.4

million cyber attacks recorded last
year alone in Kenya.
Cyber crime is said to have cost the
economy Sh2 billion annually, but this
might just be a percentage of the actual gure as cyber crime is largely under-reported. Fidelis Muya, the head of
technology at Kenya Bankers Association (KBA) said that as banks continue
to embrace technologies there is need
for developers to know the limit of
their applications and systems.
Due to the disparities between
international and local banks, KBA
only sets minimum standards for
security and processes that all banks
must declare to protect customers,
he said
Progress is being made in addressing the vice. Just last year the
rst draft of the Cyber and Computer
Related Crimes Bill was analysed by
various stakeholders.
The Bill fronted by the Oce of the
Director of Public Prosecutions seeks
to equip law enforcement agencies
with the necessary legal and forensic
tools to tackle cyber crime.
sblasto@ke.nationmedia.com
INDUSTRIES THAT USE

TEARDROPS MOST
nilever East Africa has announced this years Idea

Trophy, an inter-university innovation competition that
focuses on the development of personal and entrepreneurial business
skills among Kenyan undergraduate students.
The contest, now in its fourth
year, has been open to students
from public and private universities who are required to generate innovative ideas on creating
brand awareness and growing
product usage among their peers
in the target institutions. This years
competition will see the winning
university battle it out with others
from elsewhere in African so as to
represent the continent on the global stage.
Marc Engel, Unilever CEO for
East Africa, called on students to
apply in large numbers, adding
that the skills acquired will fun-
Last years Idea Trophy winners from University of Eldoret. FILE

damentally benet them in their
future endeavours. He added that
this years Idea Trophy had been
designed to improve youth employability across Africa by providing
students with a unique opportunities to work on business challenges
and get access to Unilevers worldclass training.
Participants will have a life-time
experience working on real business challenges in a multinational

company as well as gain mentorship from experienced business
leaders. They will also work with
creative agencies to bring their
ideas to life. Last years edition
was won by a team of three students from University of Eldoret.
UNILEVER.
KCB hosts Kisumu property tour as it eyes middle class

Kenya Commercial Bank hosted the second Kisumu property tour, seeking to
attract land and home buyers in the regions upcoming estates.
The tour that targeted over 400 participants comes as the lenders mortgage
book hit Sh56 billion, signalling increased
enthusiasm for housing in a market with
a huge shortage of affordable houses.
There is demand for affordable homes
among a large number of Kenyans. Real
estate investments in Kisumu are moving
beyond the central business district and

embracing new building technologies as
the towns infrastructure continues to expand, said KCB Group mortgages director Sam Muturi.
The region has been experiencing an
inux of property developers seeking to
tap into the expanding market of young
working class residents and visitors interested in buying houses outside the
towns centre.
We have been in the forefront in offer-
ing innovative products and solutions

that meet the dynamic demands of our
customers in the changing world of technology. We hope that this can be fully
embraced at the county level to solve the
core issues, said Mr Muturi.
The property tour covered major residential routes in the city including Milimani, Translakes Victoria Gardens, Mambo
Leo, Tom Mboya, Riat, Kibos Road, and
Kiwasco Tanks.
-KCB
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19
MONEY & MARKETS

NEWS I REVIEWS I ANALYSIS
Top foeign funds

see etuns on NSE
equities dop 11pc
Naiobi logistics
m looks South
in gowth dive
BY JOHN GACHIRI
INVESTMENT Investors take a hit from negative
returns as the weak shilling cuts dollar earnings

Kenya are focused on Africa, with
about 80 per cent of their assets inThe top-ve foreign mutual funds vested there, but Kenya forms just one
investing in Kenya have seen their quarter of the allocation. Returns have
returns decline by an average of 11 been negative over the past two years,
per cent year-to-date, a new report by said PwC in the report.
consultancy PricewaterhouseCoopThe mutual fund industry in Kenya
is relatively newnevertheless, Kenya
ers shows.
Investor returns have taken a hit has ambitious plans and has managed
from the negative returns in the equi- to take the lead in the fund industry of
ties market, while a weaker shilling the East African region.
has simultaneously erodMutual funds are invested the dollar returns as
ment schemes which pool
they get fewer dollars per
money from many invesKenya has
shilling on exiting their
tors and invest in stocks
portfolios.
ambitious plans and other types of securiAccording to the PwC
ties, with the investment
and has managed handled
report on Africa assets
by professional fund
management, Luxem- to take the lead in managers.
The equities in particular
bourg-based funds St. the fund industy
have hit the returns of the
Galler Kantonalbankof the East
funds hard, with the main
African Dawn fund,
Afican egion NSE 20 Share Index 12 per
Alquity SICAV-Alquity
cent down in the year. PricAfrica fund and Silk PWC MARKET REPORT
African Bond fund have
es of large counters with the
seen returns of -17.6 per cent, -9.7 per necessary liquidity to attract foreign
and institutional investors have trendcent and -1.3 per cent respectively.
The Nile Pan Africa Fund of the US ed downwards.
and Finish fund OP-Afrikka A, have
Pan African investment rm Allan
seen returns of -6.76 per cent and -22.3 Grey Africa Equity Fund recently reper cent respectively.
ported a 10 per cent fall in returns from
The top ve funds investing in African equities, partly attributing this
BY CHARLES MWANIKI
NUMBERS
25bn
Sh
The amount Allan Grey, which

has holdings in 43 rms in Africa, has invested in Africa. It
has invested 6.4pc of the cash
in the Nairobi exchange.
to its investment in the NSE.

Allan Grey which has holdings in
43 companies across the continent has
invested 6.4 per cent of its $247 million
(Sh25 billion) fund in the NSE mainly
in the CfC Stanbic stock.
The funds could move towards
xed-income investments which are
looking up as yields on bonds rise but
positive eect on the bottom-line is
unlikely to reect soon.
Locally, pooled investments are done
under the banner of collective invest-
Nairobi Securities Exchange staff takes

notes last week. SALATON NJAU
ment schemes including unit trusts, investment clubs, employee share ownership plans and mutual funds.
However, unequal distribution of
wealth in Kenya means that the fund
market relies almost entirely on institutional investors.
According to PwC, the recent proposal for developing an alternative
market with real estate investment
trusts and private equity funds, as
well as the ongoing plans to establish
Islamic Sukuks and Sharia compliant
mutual funds should further deepen
the nancial market. This could turn
around fortunes of the underperforming funds.
Oil discoveries will drive economic
growth which will bring more of Kenyas citizens into the middle class,
which will give quite a boost to the
fund industry, said PwC.
cmwaniki@ke.nationmedia.com
Nairobi-based logistics company

Frontier Services Ltd (FSL) is targeting southern Africa as it continues
with its African expansion binge.
The Hong Kong Stock Exchangelisted FSL said it has entered into talks
to buy a logistics company that will
give it access to the new market.
FSL entered into a non-legally
binding term sheet with an independent third party in relation to the proposed acquisition of the business and
certain assets of a logistics services
group in southern Africa, said the
groups chief executive Gregg Smith
in a statement.
The target company or the size of
the deal was not disclosed. FSL will
have access to the entire sub-Saharan
market should the proposed deal go
through.
The directors of the company
consider the proposed acquisition
would further expand its existing
logistics business throughout Africa
and complement the groups existing
footprint and strategic aim to provide
complete logistics solutions across Africa, said Mr Smith.
The company accessed the central and West African markets after
it bought Cheetah Logistics, a transport company based in the Democratic Republic of Congo. Locally it
operates through Phoenix Aviation
and Kijipwa Aviation. Frontier Services was founded by former Navy
SEAL and Blackwater founder Erik
Prince.
Titus Muya m launches dolla assets investment fund

BY JOHN GACHIRI
A rm owned by Family Bank founder Titus Muya and Andia Chakava, a

former Old Mutual Asset Management executive, has launched a fund
to service investors looking for dollar
returns.
Ms Chakava, the Alpha Africa Asset Managers (AAAM) chief executive,
said the Kasha USD fund will invest
in dollar-denominated xed income
securities.
The Mauritian-registered fund is
investing in countries in southern
Africa and comes at a time the dollar
is strengthening on expectations that
interest rates in the US will rise.
Ms Chakava said there is also
growing demand for alternative investments from investors who are
moving away from sectors that have

traditionally had high returns such as
the high-end property market where
there are signs of a slowdown.
There are a lot of investors (in this
sector) who are looking to de-risk from
this market, she said.
The Kenya Bankers Association
(KBA) Housing Price Index, which
measures the average home prices,
marginally increased in the second
quarter of 2015 indicating that the
property market is cooling down.
The KBA Housing Price Index increased by 0.2 per cent in the second
quarter of the year, slower than the
2.75 per cent jump of the rst three
months of 2015.
Alpha Africas new fund is also targeting investors such as parents who
Ms Andia Chakava, Alpha Africa Asset

Managers chief executive. DIANA NGILA
plan to send their children overseas for
college education and need to save in
dollars. Industry stakeholders said that

dollar investments are handy for local
investors seeking returns that are not
subject to the shillings volatility.
Dollar-denominated xed investments are good especially when coming from a place like Kenya where the
currency is more likely to weaken than
strengthen, African Alliance Investment Bank chief executive Alistair
Gould told the Business Daily.
The shilling has so far shed o 10
per cent of its value to the dollar since
the beginning of the year.
Mr Gould added that the dollar
investments can also be used by local
companies for hedging.
Alpha Africa which was issued
with a fund managers licence by the
Capital Markets Authority, the indus-
try regulator, in September 2013 has

Sh5.4 billion in assets under management and has mostly invested in xed
income securities.
The investment rm also has Dhahabu Africa Capital, a private equity
wing that is investing in small and midsize businesses in education, nancial
services, real estate, agro-processing
and tourism sectors.
Ms Chakava said the rm is nalising investments in three companies
but could not give ner details on the
rms or the investment size until the
deals are sealed.
The funds investment criteria is
to invest between $2 million (Sh200
million) to $10 million (Sh1 billion)
per company.
20
MONEY
MARKETS
COUNTY&BUSINESS
KCB set to hive o its motgage unit again

REALIGNMENT Lender to reverse 2009 move
on S&L as housing book hits Sh56 billion

own capital, look for partners. Right
now we are working with people in
KCB Group plans to separate its mortBrazil and Mexico to bring in seed
gage lending unit S&L from the bankfunding for investment, said Mr
ing business, making it a standalone
Oigara.
subsidiary by year-end as its housing
The bank hopes to ride on technolbusiness value hit Sh56 billion.
ogy to build houses priced between
The process will reverse its absorpSh1 million and Sh3 million.
tion in 2009 when the bank turned
The average size of mortgages in
it into a department. At the time of
the country is Sh7.5 million, making
the merger S&L was headed by Carit dicult for majority of Kenyans to
ole Kariuki who left the bank to form
own homes nanced by banks.
her own company and was replaced
KCB joins mortgage lender Housing Finance in owning a property
by Joram Kiarie.
company. HF owns Kenya
Mr Kiarie has, however, moved to manage
Building Society which
KCB Uganda in an acting
contributed 15 per cent of
What we want
capacity.
the lenders pre-tax prot
KCB Group plans to
S&L to do now is in 2013, a year after its acuse the subsidiary to entivation.
shape itself as an
ter the construction secCBA has also bought
tor by building cheaper independent entity into a property company,
houses targeting emergMutuya Holdings, investof the company
ing the middle class.
ing Sh2.3 billion for a 24
that builds
What we want S&L
per cent shareholding in
to do now is shape itself aodable houses the real estate company
as an independent envalued at Sh11 billion.
JOSHUA OIGARA, CHIEF
tity of the company that
Kenyas real estate secEXECUTIVE, KCB GROUP
builds aordable houses.
tor has been vibrant in the
We want to build 10,000 houses in
last decade, proving to be a cash cow
the next three years, said KCB chief
for developers and property managers.
executive Joshua Oigara.
KCB, Kenyas largest bank by prot,
The banks management said its
has been aggressive in increasing its
mortgage book is currently Sh56 bilrevenue streams with plans to launch
lion which is 14 per cent of the banks
its insurance and brokerage businesstotal loan book.
es by end of the year.
KCB had absorbed the mortgage
Mr Oigara disclosed the bancaslender S&L at a time when the unit
surance agency was concluding on
was facing liquidity issues. It was
brokerage arrangements with select
made a department within the main
insurers.
bank in a move meant to strengthen
Insurance companies had iniits capacity to nance huge housing
tially complained of banks entering
projects in the region.
the industry through bancassurance
We will give it a chance to get its
Co-op banches
to issue vehicle
insuance stickes
BY BD REPORTER
BY GEORGE NGIGI
KCB Group chief executive Joshua Oigara (right) and CFO Lawrence Kimathi during
the release of the lenders rst-half year results in Nairobi last week. SALATON NJAU
KCB Mortgages (Sh Bn)
services arguing that they were giving business to only select companies
limiting the options available to the
public.
Mr Oigara said the matter had been
resolved paving the way for the bank
to launch its bancassurance.
The lender has also set up an independent department targeting diaspora remittances, with a workforce
of 10 employees. Management said
the bank currently controls an estimated seven per cent of the diaspora
remittances business but is targeting
to increase its share to more than 10
per cent by end of the year.
SOURCE; KCB FINANCIALS
gngigi@ke.nationmedia.com
Co-operative Bank of Kenya, through

its Co-op Consultancy Agency, will
start issuing insurance stickers in all
its branches. The bank says the product launched in 2013 will be available
in a maximum of 10 minutes.
The car stickers are normally
printed at the head oces of insurers and sent to branches, taking one
or two days. The bank oers insurance
services of several providers.
The printing of insurance certicates at branches will deliver remarkable convenience to customers, including car dealers, said the bank.
There will be no printing charges,
according to the lender.
Several banks are providing bancassurance but Barclays has gone a
step further and acquired First Assurance for Sh2.9 billion.
Commercial Bank of Africa has
CBA Insurance. Others in the bancassurance business are Equity, NIC
and StanChart. Banks have been biting
into the pies of other service providers,
most recently going into bond trading
with the licensing of Chase Bank.
Co-op Banks Bernadette Wambui hands

customer Kennedy Mwangi an insurance
certicate last week. COURTESY
Listed bank stocks slide shaves o Sh36bn in capitalisation

BY CHARLES MWANIKI
Bank stocks took a beating at the Nairobi Securities Exchange last week,
shedding a further Sh36 billion in
collective capitalisation as the market bear run worsened.
Standard Chartered shed 8.5 per
cent to Sh270 a share, followed by
Kenya Commercial Bank at 8.3 per
cent to Sh50 a share.
Equity Holdings and Cooperative
Bank lost 6.5 per cent and 3.7 per cent
respectively to Sh39.25 and Sh19.75 a
share in what turned out to be a week
to forget for big bank stocks.
The market saw a brief respite during the middle of the week when it
rallied for two consecutive sessions,
but a big dip on Friday where it shed
82 points to 4,404 points left it on the

brink of breaking below the 4,400
points mark for the rst time since
January 2013.
in the red. Safaricom also helped pull

down the index as it closed the week
down six per cent to Sh14.40. Weekon-week, the NSE 20 share index was
down 2.1 per cent or 96 points, while
market capitalisation fell by Sh67 billion to Sh2.077 trillion.
Strategy oundered
Injurious conditions have persisted
in the market as nancial announcements follow suit; Sameer Africa and
ARM both posted losses Kenya
Airways announced one of the worst
losses recorded in sub-Saharan Africa
as an expansion strategy oundered
due to adverse industry conditions,
said Genghis Capital analysts in a
market report.
Kenya Airways closed 17.4 per
cent down week-on-week at Sh5.70
a share in the wake of its unenviable
Sh25.7 billion net loss for the nan-
Big decliners
A Nairobi Securities Exchange employee monitors share prices on the electronic

board at the bourse last week. The market bear run worsened on Friday. SALATON NJAU
cial year ended March 2015. Although
KCB and BAT announced improved
prots, their shares failed to pick up

momentum, as each closed the week
Other big decliners in the week were

Express Kenya, down 8.3 per cent to
Sh5, and Home Afrika, down 7.5 per
cent to Sh2.45.
Britam was the top gainer, up 21.6
per cent to Sh17.45, followed by Carbacid at 20.6 per cent to Sh16.95.
Pan Africa Insurance also saw
good gains at 17.1 per cent to Sh72,
as insurance stocks recovered during the week.
21
MONEY & MARKETS GLOBAL
OPEC upbeat on
global oil pices
outlook in 2016
GLUT Organisation banks on high demand to
curb further fall in the world market next year

OPEC expects increasing oil demand
Badri said. He did not indicate what
to prevent a further fall in prices and
price he expected.
sees a more balanced market in 2016,
OPEC faces a further challenge
from the prospect of rising output from
its secretary-general said, the latest
Iran, which has been lobbying for other
sign the group is sticking to its policy
OPEC members to curb supply to make
of defending market share.
way for a hoped-for rise in its exports
Oil has dropped about 15 per cent
following Tehrans deal
this month and halved in
with world powers over
value in the past year but
its nuclear work.
neither OPEC nor Russia,
But Badri, indicating
the worlds top producer,
I would not
have cut output to support
condence in the outlook,
expect they
prices, hoping cheaper oil
was quoted by Russias Inwill hit US shale and other (pices) ae going terfax news agency as sayrival sources.
ing the market could acto fall because
I would not expect they
commodate extra oil from
demand is
(prices) are going to fall beIran as demand increased
cause demand is growing,
echoing the view of Gulf
gowing
OPEC secretary-general
OPEC members.
ABDULLAH AL-BADRI,
Russian Energy MinisAbdullah al-Badri told reSECRETARY-GENERAL, OPEC
ter Alexander Novak, who
porters in Moscow. OPEC
pumps around 40 per cent
met with Badri earlier in
of global oil production.
the day, said they did not discuss coordination to help the market rebound.
The current situation is a test for
all producers and investors. While the
Badri added that even if OPEC had
prices ... no doubt will rebound, it is still
cut output by as much as two million
too early to say when this will happen,
barrels per day (bpd) equal to around
Commodities, China stocks

lick wounds afte hash July
Commodities and China investors waved a relieved goodbye
to July on Friday following a
brutal sell-o that has revived
fears about the global economy and overshadowed more
encouraging news from the
US and Europe.
There were signs that the
rout wasnt over yet as Chinese
stocks which have suered
their worst monthly drop in
six years wobbled again,
oil prices slipped following
a more than 15 per cent July
slump and metals from industrial copper to precious gold
hit multi-year lows.
That happened despite a
pause in the dollars recent
rise.
European markets, relieved
that Greece looks to be staying
in the euro after its last-minute
deal this month, saw a solid
start to the day to cap a more
than four per cent monthly rise
for stocks and the biggest drop
in Italian bond yields in two
years. The main moves this

week have been the continued
broad-based weakness in commodities, said Societe Generale strategist Alvin Tan.
Essentially they have been
on the downtrend for a month
and of course we have been on
a roller coaster ride in China
equities and that has aected
sentiment.
European stocks were underpinned by some upbeat
company earnings. Shares in
UCB surged 5.2 percent after
the Belgian pharmaceutical
company raised its 2015 forecasts and bank BNP Paribas
gained 3.5 per cent after its
Q2 revenue rose nearly 16
per cent.
Copper, considered a bellwether for global economic
activity, was facing a nine per
cent monthly loss as it stumbled to $5,238 an tonne. Gold
was down over seven per cent
on the month at $1,081.95 an
ounce. REUTERS
OPEC secretary-general Abdalla Salem El-Badri speaks during a press conference

with Russias Energy minister Alexander Novak after Russia-OPEC energy dialogue
meeting in Moscow on Thursday. AFP
half of Russian exports it would not
have helped prices.
Novak said earlier that an oil price
of between $50 and $65 per barrel compared to the current level of around
$54 was expected. He estimated
that global oil demand would grow by
1.2-1.3 million bpd this year.
While some OPEC delegates have
expressed concern over the recent
fall in prices, Badri said he had received no request for an extraordinary OPEC meeting before the next
scheduled gathering in December

- which Russia would be ready to attend if invited.
Russia and OPEC have a history
of bumpy relations, with the group
having urged Moscow a number of
times to join in a market-boosting
supply cut.
Moscow has never fully cooperated and refused to do so as recently
as June. So far, Russia has withstood
low prices, maintaining oil output at
a post-Soviet high of 10.71 million bpd
as a weak rouble osets some of its

losses. Saudi Arabia, the worlds top
oil exporter and largest producer in
OPEC with one of the worlds lowest
costs, ramped up its crude production
to a record in June.
Russian majors upstream cash
ow break-evens are among the lowest in the world at less than $60 per
barrel.
Costs are largely rouble-denominated and among the lowest in the
world, Valentina Kretzschmar, a research director for Wood Mackenzie,
said in a recent report.
The Russian rouble has lost half of
its value since last year due to weak
oil and Western sanctions imposed
against Russia over its role in the
Ukraine crisis.
In a joint statement, Russia and
OPEC said they saw the possibility
for the market to become more balanced and stable next year - an OPEC
position based on expectations that
China and the developing world will
increase oil consumption.
Despite current uncertainties,
signs of a more balanced market in
2016 may provide much desired stability to the oil market in the longerterm, the statement said.
Novak said in a statement: We,
Russia and OPEC members, being responsible participants on the global
oil market, should conduct our policy
based on the full ... understanding of
its (global oil market) key factors and
characteristics.
Here we are pursuing the common goals of keeping the market in a
balanced and stable state.
- REUTERS
Pueto Rico misses debt epayment

Puerto Ricos expected default on debt
would be the start to what could end up
becoming one of the largest municipal restructurings, with the potential to open the
door to a ght with investors and spark
volatility in bond prices.
Puerto Rico Governor Alejandro Garcia
Padilla shocked investors in June when he
said the islands $72 billion debt was unpayable and required restructuring.
Puerto Rico has agged that it will likely
skip a $58 million payment that was due
August 1 on its Public Finance Corporation (PFC) debt, which has weaker investor
protection than some other bonds.
What could surprise investors is when
they actually hear the word default, and
that a default occurred, said Lyle Fitterer,
head of tax-exempt xed income at Wells
Capital Management, which holds mostly
insured Puerto Rico debt.
The immediate reaction might be a
slight sell-o in the marketplace because
I think people will start to anticipate, OK,
whats the next series of debt theyre going
to default on?
It would mark the rst missed debt
payment. According to a 2014 bond offering statement, Puerto Rico has never
defaulted on the payment of principal or
interest of debt.
A non-payment would be the most
Rating agencies take

Credit rating agency Standard & Poors says it
will view a non-payment on rated PFC bonds on
their due date as a default.
Moodys says it will also consider it a default.
notable since Detroit, which had about

$8 billion of bonds, defaulted on $1.45
billion of insured pension bonds before it
led for bankruptcy in 2013 and then on
more than $600 million of general obligation bonds.
Puerto Ricos chief of sta Victor Suarez said last week that the commonwealth
did not have the current cash ow to pay
the PFC bonds.
I bought my (PFC) bonds with the anticipation of them defaulting, said Ben
Eiler, managing partner at First Southern
Securities in Puerto Rico. Theyre going
to restructure in some form or fashion
and I believe that restructure is going to

be higher than that level.
PFC bonds due 2031 traded Thursday
at 15.55 cents on the dollar.
However, there remains a question
over whether Puerto Rico would meet a
$169.6 million Government Development
Bank (GDB) debt payment, also due August 1. Suarez has said the island will do
everything that is possible to ensure
that it is paid.
People are split on the GDB if it pays
it may be positive on a short-term perspective, said John Miller, co-head of xed income for Nuveen Asset Management. If it
fails to pay, it could be a negative sign for
debt such as its general obligation debt,
said Miller.
The upcoming restructuring is leading investors to wonder how Puerto Rico
will prioritise debt payments versus citizens needs.
Were beginning to discern a... mindset
on the island that the government is weighing the interest of investors against the economic interest of the island, said Thomas
McLoughlin, UBS chief investment ocer
wealth management research.
Suarez told reporters in San Juan last
week that a missed payment would not
constitute default.
- REUTERS
22
MARKET DATA
Agro Commodities Market
Early Morning wholesale commodity prices Date 31-07-2015
COMMODITY
Unit
Kg
Nairobi
Mombasa
CEREAL
Dry Maize
Bag
90
2900
3100
Green Maize
Ext Bag
115
2400
5700
Finger Millet
Bag
90
7200
6700
Sorghum
Bag
90
3600
3600
Wheat
Bag
90
4000
LEGUMES
Beans Canadian
Bag
90
6000
Beans Rosecoco
Bag
90
6000
5600
Beans Mwitemania
Bag
90
5800
5200
Mwezi Moja
Bag
90
5800
Dolichos (Njahi)
Bag
90
11500
11700
Green Gram
Bag
90
12000
9900
Cowpeas
Bag
90
7200
5400
Fresh Peas
Bag
51
2000
1500
Groundnuts
Bag
110
13000
14850
ROOTS & TUBERS
Red Irish Potatoes
Bag
50
1600
1600
White Irish Potatoes
Bag
50
1700
2100
Cassava Fresh
Bag
99
1800
1700
Sweet Potatoes
Bag
98
3300
3300
VEGETABLES
Cabbages
Ext Bag
126
1500
2400
Cooking Bananas
Med Bunch
22
520
700
Ripe Bananas
Med Bunch
14
640
470
Carrots
Ext Bag
138
3200
3700
Tomatoes
Lg Box
64
4800
5600
Onions Dry
net
13
900
750
Spring Onions
Bag
142
1800
3800
Chillies
Bag
38
2000
1500
Cucumber
Bag
50
1800
2000
Capsicums
Bag
50
2000
2000
Brinjals
Bag
44
1500
900
Cauliower
crate
39
1800
3900
Lettuce
Bag
51
1800
2000
FRUITS
Passion Fruits
Bag
57
4500
6000
Oranges
Bag
93
3000
3600
Lemons
Bag
95
2700
2700
Mangoes Local
Bag
126
2200
1500
Mangoes Ngowe
Sm Basket
25
1000
1200
Limes
net
13
1000
600
Pineapples
Dozen
13
720
900
Pawpaw
Lg Box
54
1800
1200
Avocado
Bag
90
1800
3000
Kales
Bag
50
1200
1000
OTHERS
Eggs
Tray
300
360
Commodities
Kisumu
Nakuru
Eldoret
3200
2200
7200
3400
2700
1400
5800
2700
2700
1080
6700
4950
3400
7200
6800
5800
5800
4500
4500
10800
8100
7200
2200
13700
12000
8000
2800
11000
2000
2000
2000
2500
900
350
350
4500
3500
1000
1500
1500
2500
1400
5850
5850
9000
9000
4050
1530
11250
1600
1000
800
2500
1500
350
750
2500
4500
900
1000
2000
1400
1000
800
420
1400
3500
1170
1000
800
3000
3300
1800
2500
1800
5000
3200
2700
3000
500
2850
3800
620
1500
1700
1200
480
3000
2000
900
1040
2160
1800
1000
270
300
2400
700
360
MSCI Emerging Markets Sector Indices

NET.CHNG
-18.67
-13.76
-4.07
-281.52
-44.28
-25.11
-36.40
-38.74
-0.72
-114.15
-188.37
-8.90
-122.05
-20.74
-13.73
-26.38
-2,900.81
-69.38
-26.90
-3.40
-14.15
-66.04
-151.67
29.29
-50.53
-35.32
-28.97
-2,428.02
-23.88
-12.51
-48.82
-49.01
-200.40
548.13
24.33
-207.09
-17.04
-1.57
-137.44
-31.60
-26.06
-53.63
-6.22
-16,754.00
-12.33
-11.48
-64.01
A maize trader prepares the crop for sale at a Nyahururu market. Prices have gone down
due to oversupply following a bumper harvest. JOSEPH KURIA
Nyahururu
1500
SOURCE: STATE DEPARTMENT OF AGRICULTURE. EMAIL MARKETINFO@KILIMO.GO.KE
NAME
LAST
CI-UAE
454.76
CI-AC AMER.
1,056.32
CI-ASIA PAC
140.20
CI-ARGENTINA
1,898.89
CI-BRIC
573.23
BRIC
279.41
BRIC GROWTH
520.46
BRIC VALUE
453.98
CI-BAHRAIN
106.00
CI-BRAZIL FREE
1,956.56
CI-CHILE
4,126.45
CI-CHINA FREE
74.37
CI-COLOMBIA
2,319.66
CI-CZECH REPUBLI 280.63
CI-EAFE+EM
328.81
CI-EU
471.29
CI-EM
50,449.25
CI-EGYPT
1,761.60
CI-AC EUROPE
511.10
CI-C.FE
125.47
CI-GOLD DRAGON
172.09
CI-HUNGARY
1,016.71
CI-INDON. FREE
5,777.12
CI-INDIA
1,034.34
CI-JOEG & MA
1,132.80
CI-KOREA
545.05
CI-KUWAIT
509.51
CI-EM L.AMERICA 68,756.23
CI-SRI LANKA
670.35
CI-EM E.EUROPE
258.81
CI-EM FAR EAST
639.09
CI-EM ASIA
752.45
CI-EM EUROPE
4,712.90
CI-MEXICO FREE 42,859.38
CI-OMAN
762.15
CI-PERU
2,103.65
CI-PHILIPP.FREE
1,297.55
CI-PAKISTAN
132.93
CI-POLAND
1,675.49
CI-QATAR
965.02
CI-RUSSIA
790.99
SOUTH EAST ASIA 1,248.63
CI-THAILAND FREE 521.95
CI-TURKEY
1,158,904.00
CI-TAIWAN
348.99
CI-ISRAEL
320.20
CI-SOUTH AFRICA 1,368.46
Maize glut
PCT.CHNG
OPEN
-3.94%
454.76
-1.29% 1,056.32
-2.82%
140.20
-12.91% 1,898.89
-7.17%
573.23
-8.25%
279.41
-6.54%
520.46
-7.86%
453.98
-0.67%
106.00
-5.51% 1,956.56
-4.37% 4,126.45
-10.69%
74.37
-5.00% 2,319.66
-6.88%
280.63
-4.01%
328.81
-5.30%
471.29
-5.44% 50,449.25
-3.79%
1,761.60
-5.00%
511.10
-2.64%
125.47
-7.60%
172.09
-6.10%
1,016.71
-2.56%
5,777.12
2.91% 1,034.34
-4.27%
1,132.80
-6.09%
545.05
-5.38%
509.51
-3.41% 68,756.23
-3.44%
670.35
-4.61%
258.81
-7.10%
639.09
-6.11%
752.45
-4.08% 4,712.90
1.30% 42,859.38
3.30%
762.15
-8.96% 2,103.65
-1.30%
1,297.55
-1.17%
132.93
-7.58% 1,675.49
-3.17%
965.02
-3.19%
790.99
-4.12% 1,248.63
-1.18%
521.95
-1.43% 1,158,904.00
-3.41%
348.99
-3.46%
320.20
-4.47% 1,368.46
HIGH
454.76
1,056.32
140.20
1,898.89
573.23
279.41
520.46
453.98
106.00
1,956.56
4,126.45
74.37
2,319.66
280.63
328.81
471.29
50,449.25
1,761.60
511.10
125.47
172.09
1,016.71
5,777.12
1,034.34
1,132.80
545.05
509.51
68,756.23
670.35
258.81
639.09
752.45
4,712.90
42,859.38
762.15
2,103.65
1,297.55
132.93
1,675.49
965.02
790.99
1,248.63
521.95
1,158,904.00
348.99
320.20
1,368.46
LOW
CLOSE
454.76
473.43
1,056.32
1,070.08
140.20
144.27
1,898.89
2,180.41
573.23
617.51
279.41
304.52
520.46
556.86
453.98
492.72
106.00
106.72
1,956.56
2,070.71
4,126.45
4,314.82
74.37
83.27
2,319.66
2,441.71
280.63
301.37
328.81
342.54
471.29
497.66
50,449.25
53,350.06
1,761.60
1,830.98
511.10
538.00
125.47
128.87
172.09
186.24
1,016.71
1,082.75
5,777.12
5,928.79
1,034.34
1,005.05
1,132.80
1,183.33
545.05
580.37
509.51
538.49
68,756.23
71,184.24
670.35
694.23
258.81
271.32
639.09
687.91
752.45
801.46
4,712.90
4,913.30
42,859.38
42,311.25
762.15
737.83
2,103.65
2,310.74
1,297.55
1,314.59
132.93
134.51
1,675.49
1,812.93
965.02
996.62
790.99
817.04
1,248.63
1,302.26
521.95
528.17
1,158,904.00 1,175,658.00
348.99
361.32
320.20
331.68
1,368.46
1,432.47
Global Commodity Prices
Unit Trusts
Effective date: 30th July 2015
Effective date: 31st July 2015

AGRO COMMODITIES
MONEY MARKET FUND
SOFTS
OLD MUTUAL
SH
7.41%
7.67%
BRITISH AMERICAN
SH
10.43%
10.99%
11.28%
CURRENCY LAST NET CHNG
COMMODITY
SUGAR NO5
USD
29800.00
CURRENCY
DAILY YIELD EFFECTIVE ANNUAL RATE
UAP
SH
10.69%
0.00
GENCAP HELA
SH
11.05%
11.52%
SH
10.96%
11.58%
COFFEE
USD
162.30
-19.45
PAN AFRICA PESA+
COCOA
10.26%
10.76%
3215.00
-6.00
AMANA
SH
USD
MADISSON
SH
9.73%
10.18%
RUBBER
JPY
192.00
-1.00
CIC
SH
11.06%
11.70%
ICEA
SH
9.35%
9.81%
CBA
SH
9.50%
9.89%
FROZEN OJ CON1 USC
123.50
0.75
COTTON NO2
63.55
-0.11
USC
STANLIB
NABO AFRICA
GRAINS
CORN
USC
376.25
3.00
MAIZE EUR
EUR
155.75
1.25
WHEAT
USC
502.00
5.50
ROUGH RICE
USD
11.48
0.04
OILSEEDS
FIXED INCOME FUND

GENCAP HAZINA
CIC
NABO AFRICA
SH
10.10%
10.58%
USD
96.12
96.12
CURRENCY
BUY
SELL
SH
110.78
114.8
SH
9.54
9.79
USD
94.02
94.02
162.03
BALANCED FUND
OLD MUTUAL / TOBOA
SH
152.16
BRITISH AMERICAN
SH
184.71
190.11
GENCAP ENEZA
SH
119.07
123.39
SOY BEANS
USC
995.00
4.75
UAP
SH
10.64
11.17
SOY BEAN OIL
USC
30.19
-0.09
AMANA
SH
119.54
119.54
CANOLA
CAD
499.90
1.20
MADISSON
SH
59.67
62.96
PALM OIL
MYR
PAN AFRICA CHAMA+
SH
10.17
10.48
ICEA
SH
131.07
137.97
2264.00
-8.00
CIC
NABO AFRICA
METALS & MINING

SYMBOL CURRENCY
100 OZ GOLD
USD
STANLIB
LAST
1080.70
NET CHG
-7.70
SH
13.08
13.80
USD
104.04
104.04
SH
125.40
125.40
EQUITY FUND
OLD MUTUAL
SH
370.16
396.62
OLD MUTUAL EAST AFRICA FUND
SH
147.54
156.15
BRITISH AMERICAN
SH
193.55
199.7
CBA
SH
154.55
154.55
SILVER
JPY
59.00
1.00
HG COPPER
USC
2.37
-0.01
AMANA
SH
120.30
120.30
-23.00
GENCAP HISA
SH
120.97
125.36
CIC
SH
13.71
14.44
PLATINUM
JPY
3897.00
ALUMINIUM
CNY
12050.00
-165.00
MADISSON
SH
45.14
47.93
PALLADIUM
JPY
2565.00
94.00
ICEA
SH
138.38
145.66
UAP
NABO AFRICA
OIL& GAS
SYMBOL
STANLIB
CURRENCY
LAST
NET CHG
LIGHT CRUDE
USD
47.51
-1.01
NO 2 HT OIL
USD
1.59
-0.01
SH
10.00
10.5
USD
96.61
96.61
SH
174.42
174.42
BOND FUND
OLD MUTUAL BOND FUND
SH
96.84
99.14
BRITISH AMERICAN
SH
136.88
139.67
ICEA
SH
90.98
91.90
UAP
SH
11.14
11.14
PAN AFRICA PATA+
SH
9.67
9.97
BRENT CRUDE
USD
52.66
-0.65
GAS OIL
USD
487.25
-6.50
STANLIB B1
SH
98.04
98.04
NATURAL GAS
USD
2.79
0.02
STANLIB A
SH
97.29
97.29
SH
107.96
113.64
KEROSINE
JPY
51800.00
-60.00
SHARIAH COMPLIANT
GENCAP IMAN
23
MARKETDATA
DATA
MARKET
Inflation in
eurozone,
jobless data
unchanged
Ination in the 19-nation eurozone
was unchanged in July while the jobless rate for June was also at, suggesting the economy maintained only
modest growth, ocial data showed
Friday.
Analysts said the gures were disappointing, with no sign as yet that
the European Central Banks (ECB)
unprecedented economic stimulus
programme is beginning to have a
real impact on the economy after
years of tepid gains.
Consumer prices rose 0.2 per cent
in July, the Eurostat statistics agency
said, the same rate as the previous
month and in line with analysts
forecasts.
The ECB has an ination target of
just under 2.0 per cent and in March
launched what is known as a Quantitative Easing (QE) programme to pump
about one trillion euros through to
September 2016 into the economy in
an eort to get it back on track.
Underlying ination, which strips
out volatile energy and food prices,
was slightly more positive from the
ECBs point of view, rising to 1.0 per
cent in July from 0.8 per cent in June,
Eurostat said.
WINNERS AND LOSERS - YTD

Kakuzi
Williamson Tea
Kenya
397.00
0.51%
Kenya
355.00
0.00%
Kapchorua Tea
Sasini
Kenya
17.10
0.88%
Kenya
Limuru Tea
218.00
-9.92%
Kenya
1,090.00
0.00%
218
Jan 15
Jul 15
23.77
16.70
10.08%
Earnings per share

Price to earnings ratio (p/e)
Dividend Yield
Pan
Africa
Uchumi
Kenya
Jan 15
Jul 15
8.17
43.45
1.06%
Earnings per share

Dividend Yield
Housing
EABL Finance
72.0018.80 Kenya
Kenya
-3.36%
2.17%
Kenya
Jan 15
244.00
23.00
7.49%
-4.17%
Jul 15
0.54
31.67
1.46%
Earnings per share

Dividend Yield
CNational
& G Bank
Kenya
30.25
18.90
-3.20%
-5.50%
Jan 15
Earnings per share
Dividend Yield
Transcentury
Kenya
Airways
Kenya
Kenya
Jul 15
-5.82
-37.46
2.29%
11.75
15.20
0.00%
-1.94%
Jan 15
Jul 15
-0.28
0.09%
Earnings per share

Dividend Yield
Crown
KPLC Berger
Kenya
Kenya
62.50
14.45
-2.34%
0.35%
23.00
Jan 15
Jul 15
Jan 15
Jul 15
9.071.35 Earnings
perper
share
Earnings
share
13.93
7.94
Price
to earnings
ratio
(p/e)
Price
to earnings
ratio
(p/e)
1.60%
0.00%
Earnings
share
Earnings
perper
share
Price
to earnings
ratio
(p/e)
Price
to earnings
ratio
(p/e)
Dividend
Yield
Dividend
Yield
Dividend
Yield
Dividend
Yield
Jan 15
Jul 15
Jan 15
per share
3.117.48 Earnings
Earnings per share
6.084.04 Price to earnings ratio (p/e)
Yield
2.64% Dividend
Dividend Yield
0.00%
Earningsper
pershare
share
4.21
8.82 Earnings
Pricetotoearnings
earningsratio
ratio(p/e)
(p/e)
5.46
27.66 Price
DividendYield
Yield
6.52%
2.25% Dividend
Jul 15
Jan 15
Jul 15
-6.35
per share
-8.53 Earnings
Earnings
per share
-1.85
to earnings
ratioratio
(p/e)(p/e)
to earnings
-1.78 PricePrice
0.00%
YieldYield
Dividend
0.00% Dividend
2.23
9.01
6.48
6.94
0.00%
2.80%
Greek debt crisis

Unemployment meanwhile was unchanged at 11.1 per cent in June, it said.
A pick-up in consumer prices is usually
evidence of increased demand which
in turn should produce more jobs so
the gures suggest the economy is
bumping along despite the negative
impact on sentiment of the long-running Greek debt crisis.
Prices were actually falling in the
rst three months of the year with
January down a worrying 0.6 per
cent, stoking fears of deation. Deation can be a killer for an economy
because consumers may put o purchases expecting to buy goods cheaper
at a later date but that undermines
demand, and then jobs, setting o a
vicious cycle.
On the face of it, a disappointing set of data for the eurozone, said
Howard Archer of IHS Global Insight.
Archer said weak energy prices will
continue to put pressure on the data
but the ECB will take a fair degree
of comfort from the core ination
gures.
If ination dips lower or even fails
to pick up in the near term, the ECB
could seriously consider taking further
stimulative action such as front-loading its QE, he added.
Eurostat said there were some
17.76 million unemployed in the eurozone in June, up 31,000 from May
even as the headline rate remained
unchanged. -AFP
Tracking the markets: Benchmark Index (Latest Data)

Africa
DSE All Share
USE All Share
JSE All Share Index
Uganda
South Africa
1,850.00
-0.70%
51,957.06
0.35%
Jan 15
Jul 15
Jan 15
NGSE All share
Tanzania
Jul 15
RSE All Share
Nigeria
Rwanda
2,551.38
-0.17%
Jan 15
Jul 15
143.62
0.09%
30,175.63
-0.86%
Jan 15
Jul 15
Jan 15
Jul 15
World
DJ Industrial
Xetra Dax
11,248.83
-0.07%
17,745.98
-0.03%
Jan 15
Jul 15
Jan 15
Jul 15
Mumbai
Tokyo
Hongkong
Jul 15
28,114.56
1.48%
20,585.24
0.30%
24,636.28
0.56%
Jan 15
Sensex
Nikkei
HangSeng
Frankfurt
New York
Jan 15
Jul 15
Jan 15
Jul 15
24
MARKET DATA
African Indices
Nairobi Stocks
NAME
NSE 20 Share Index
4,404.72
-1.84%
Nairobi
NSE 20 - SHR IDX

LUSE ALL SHARE INDEX
JSE ALL SHARE INDEX
Jan 15
1,140.30
-0.21%
Nairobi
Jan 15
july 15
Active
Active Counters
Counters
%
Total Shares
Change
Traded
15.15
0.99%
77,202,400
Co-Op Bank
20.50
21.00
-2.38%
8,122,000
Kenya Power
15.80
16.00
-1.25%
5,616,300
Equity
42.00
45.00
-6.67%
5,135,500
KCB
54.50
54.50
0.00%
5,130,000
Gainers
Price fri
Price fri
Net
Counter
last fri
Prev fri
Change
NBK
19.35
18.15
1.20
6.61%
2.65
2.50
0.15
6.00%
390.00
380.00
10.00
2.63%
6.90
6.75
0.15
2.22%
290.00
285.00
5.00
1.75%
Williamson Tea
KQ
EABL
%
Chng
Losers
price fri
Last fri
price fri
Prev fri
Carbacid
14.05
17.00
-2.95
-17.35%
Uchumi
6.75
8.05
-1.30
-16.15%
British American
14.35
16.90
-2.55
-15.09%
Pan Africa
61.50
70.50
-9.00
-12.77%
HF
20.75
23.50
-2.75
-11.70%
Counter
MARKET UPDATES
4,487.38
0.00
0.00%
5,847.31
5,847.31
5,847.31
5,847.31
182.65
0.35%
51,979.23
52,018.66
51,644.97
51,774.41
1,850.00
-13.00
-0.70%
1,863.00
1,863.00
1,863.00
1,863.00
145.35
-0.28
-0.19%
145.63
145.63
145.63
145.63
CFG INDEX
MOROCCO
20,629.36
18.18
0.09%
20,610.96
20,673.09
20,595.29
20,611.18
MALAWI
16,056.99
0.00
0.00%
16,056.99
16,056.99
16,056.99
16,056.99
NIGERIA
30,175.63
-260.55
-0.86%
30,436.18
30,455.28
30,050.12
30,436.18
TANZANIA
2,551.38
-4.45
-0.17%
2,555.83
2,555.83
2,555.83
2,555.83
RSE ALLSHARE IND
july 15
FTSE Pan African Index
Home Africa
4,487.38
UGANDA
52 WK
HIGH
15.30
4,487.38
EGYPT
8,191.53
85.84
1.06%
8,120.73
8,197.61
8,120.10
8,105.69
TUNISIA
5,634.33
20.58
0.37%
5,615.66
5,640.51
5,603.35
5,613.75
RWANDA
143.62
0.13
0.09%
143.62
143.62
143.62
143.49
148.39
-1.70%
Nairobi
Safaricom
CLOSE
4,487.38
Daily Share
Report
Weekly
Share
Report
All Share Index (NASI)
Price fri
PCT.CHNG
ZIMBABWE
TUN MAIN INDEX
Prev fri
NET.CHNG
ZSE INDUSTRIAL
EGX 30 IDX/D
Last fri
LOW
-1.84%
5,847.31
DSE ALL SHR IDX
Price fri
HIGH
-82.66
51,957.06
NSE ALL SHARE/D
Counter
OPEN
4,404.72
ZAMBIA
MALAWI ALL SHR
july 15
LAST
KENYA
SOUTH AFRICA
ALSIUG
Jan 15
LOCATION
Net
Change
%
Chng
AGRICULTURAL
100.00
EAAGADS
363.00
KAKUZI
200.00
KAPCHORUA TEA
1248.00
LIMURU TEA
27.50
REA VIPINGO
18.50
SASINI
435.00
WILLIAMSON TEA
AUTOMOBILES & ACCESSORIES
62.00
CAR & GEN
13.60
MARSHALLS
9.40
SAMEER
BANKING
18.45
BARCLAYS
155.00
CFC STANBIC
280.00
DTBK
63.00
EQUITY
55.00
HF
147.00
I&M HOLDINGS
65.50
KCB
34.00
NBK
85.00
NIC BANK
357.00
STAN. CHART.
25.00
CO-OP BANK
COMMERCIAL
ATLAS DEV. & SUPP.T SERV.LTD 13.75
8.50
EXPRESS (K)
20.25
HUTCHINGS BIEMER
13.50
KQ
30.75
LONGHORN PUBLISHERS
325.00
NATION MEDIA
47.50
STANDARD GRP
49.50
TPS EA
15.60
UCHUMI
52.00
WPP SCANGROUP
CONSTRUCTION & ALLIED
95.00
ARM CEMENT LTD
206.00
BAMBURI
175.00
CROWN BERGER
17.00
EA CABLES
110.00
EAPC
ENERGY & PETROLEUM
13.15
KENGEN
10.50
KENOLKOBIL
18.50
KENYA POWER
32.00
TOTAL
23.00
UMEME
INSURANCE
40.00
BRITISH AMERICAN
12.40
CIC INSURANCE
599.00
JUBILEE
21.00
KENYA RE
26.50
LIBERTY KENYA
142.00
PAN AFRICA
INVESTMENT
84.50
CENTUM INVEST.
5.80
HOME AFRICA
KURWITU VENTURES LTD 1500.00
10.85
OLYMPIA
30.00
TRANSCENTURY
INVESTMENT SERVICES
NAIROBI SECURITIES EXCHG 28.00
MANUFACTURING & ALLIED
11.10
A. BAUMANN
165.00
BOC GASES
1050.00
BAT KENYA
37.00
CARBACID
355.00
EABL
5.35
EVEREADY EA
FLAME TREE GROUP HOLDINGS 14.00
192.00
K. ORCHARDS
3.85
MUMIAS
56.50
UNGA
TELECOMMUNICATION & TECHNOLOGY
17.90
SAFARICOM
52 WK
LOW
YTD
%
PRICE
LAST
FRI
PRICE
PREV
FRI
WEEKLY
PRICE
CHANGE
SHARES
TRADED
LAST WEEK
SHARES
ISSUED
MKT CAP.
KSHS MN
EPS
LATEST
12MNTH
P/E
TRAILING
PBV
TRAILING
DPS
LATEST
12MNTH
TOTAL
DIVIDEND
YIELD
26.00
110.00
120.00
620.00
27.50
11.50
240.00
-16.67%
97.22%
76.64%
41.37%
0.00%
31.91%
59.27%
34.50
355.00
218.00
1090.00
27.50
17.10
397.00
35.00
347.00
190.00
1090.00
27.50
15.75
390.00
-1.43%
2.31%
14.74%
0.00%
0.00%
8.57%
1.79%
18,500
1,700
1,600
100
38,400
6,600
32,157,000
19,599,999
3,912,000
1,800,000
60,000,000
228,055,500
8,756,320
1,109.42
6,958.00
852.82
1,962.00
1,650.00
3,899.75
3,476.26
0.18
8.17
-5.82
-0.28
5.85
0.54
23.77
191.67
43.45
-37.46
4.70
31.67
16.70
2.76
2.40
0.62
5.31
0.74
0.62
0.55
0.00
3.75
5.00
1.00
0.00
0.25
40.00
0.00%
1.06%
2.29%
0.09%
0.00%
1.46%
10.08%
31.00
8.00
4.75
-17.13%
32.65%
-18.33%
44.75
13.10
4.90
44.75
13.00
5.05
0.00%
0.77%
-2.97%
1,600
13,800
40,103,308
14,393,106
278,342,393
1,794.62
188.55
1,363.88
6.57
-11.90
-0.24
6.81
-1.10
-20.42
0.86
0.48
0.58
0.60
0.00
0.00
1.34%
0.00%
0.00%
14.00
90.00
193.00
31.00
20.50
106.00
42.25
16.00
47.00
261.00
17.10
-14.07%
-23.39%
-12.77%
-18.00%
-47.54%
-13.82%
-11.40%
-19.19%
-15.22%
-17.31%
1.25%
14.05
95.00
205.00
39.25
23.00
106.00
50.00
18.90
49.50
270.00
19.75
14.50
98.50
199.00
42.00
20.75
106.00
54.50
19.35
48.00
295.00
20.50
-3.10%
-3.55%
3.02%
-6.55%
10.84%
0.00%
-8.26%
-2.33%
3.13%
-8.47%
-3.66%
3,009,800
59,000
39,800
25,823,200
435,800
17,300
15,361,900
169,200
163,100
49,700
5,485,400
5,431,536,000
395,321,638
220,100,096
3,702,777,020
352,416,667
392,362,039
3,025,219,832
308,000,000
639,945,603
309,159,514
4,889,316,295
76,313.08
37,555.56
45,120.52
145,334.00
8,105.58
41,590.38
151,260.99
5,821.20
31,677.31
83,473.07
96,564.00
1.54
14.38
21.92
4.55
4.21
13.56
5.63
3.11
7.07
33.21
1.64
9.12
6.61
9.35
8.63
5.46
7.82
8.88
6.08
7.00
8.13
12.04
2.36
1.63
2.15
2.82
0.89
1.90
2.33
0.43
1.52
2.31
2.25
1.00
6.15
2.40
1.80
1.50
2.90
2.00
0.00
1.00
17.00
0.50
7.12%
6.47%
1.17%
4.59%
6.52%
2.74%
4.00%
0.00%
2.02%
6.30%
2.53%
9.50
4.15
20.25
5.70
6.45
178.00
26.25
32.00
6.65
35.25
-19.35%
0.00%
-27.59%
-28.11%
-31.18%
12.23%
-2.70%
-27.36%
-13.81%
10.00
5.00
20.25
5.70
7.00
187.00
39.00
35.00
7.25
38.75
9.95
5.45
20.25
6.90
6.80
187.00
34.00
33.00
6.75
38.00
0.50%
-8.26%
0.00%
-17.39%
2.94%
0.00%
14.71%
6.06%
7.41%
1.97%
700
18,100
530,300
187,300
14,400
7,300
31,400
192,300
210,300
433,063,193
35,403,790
360,000
1,496,469,035
243,750,000
188,542,286
81,731,808
182,174,108
364,959,616
378,865,102
4,330.63
177.02
7.29
8,529.87
1,706.25
35,257.41
3,187.54
6,376.09
2,645.96
14,681.02
-0.04
-2.18
-18.34
-2.25
1.62
13.10
2.57
1.35
1.45
1.50
-250.00
-2.29
-1.10
-2.53
4.32
14.27
15.18
25.93
5.00
25.83
0.89
2.73
0.94
4.31
1.76
0.58
0.66
1.79
0.00
0.00
0.00
0.00
2.00
10.00
0.50
1.35
0.30
0.00
0.00%
0.00%
0.00%
0.00%
28.57%
5.35%
1.28%
3.86%
4.14%
0.00%
63.00
135.00
54.00
14.00
51.00
-19.77%
9.35%
-42.34%
-3.09%
-6.90%
63.00
154.00
62.50
15.70
54.00
70.50
154.00
60.00
14.80
56.00
-10.64%
0.00%
4.17%
6.08%
-3.57%
232,900
5,000
14,300
147,000
4,000
495,275,000
362,959,275
23,727,000
253,125,000
90,000,000
31,202.33
55,895.73
1,482.94
3,974.06
4,860.00
3.01
9.80
9.01
1.37
-4.30
20.93
15.71
6.94
11.46
-12.56
3.84
1.93
1.09
1.65
1.00
0.60
12.00
1.75
1.00
0.00
0.95%
7.79%
2.80%
6.37%
0.00%
8.00
7.55
12.85
20.25
13.00
-17.48%
-8.05%
11.07%
-15.63%
-23.81%
8.45
8.00
16.00
20.75
17.00
8.25
8.10
15.80
20.75
16.60
2.42%
-1.23%
1.27%
0.00%
2.41%
1,615,900
19,977,000
3,486,400
48,200
706,900
2,198,361,456
1,471,761,200
1,951,467,045
175,028,706
1,623,878,005
18,576.15
11,774.09
31,223.47
3,631.85
27,605.93
1.29
0.74
3.31
2.26
1.34
6.55
10.81
4.83
9.18
12.65
0.27
1.77
0.72
0.71
3.01
0.40
0.20
0.50
0.70
0.90
4.73%
2.50%
3.13%
3.37%
5.31%
14.00
6.00
301.00
15.45
15.10
61.00
-42.18%
-29.17%
24.44%
-4.40%
-7.53%
-37.92%
17.45
7.00
560.00
16.50
21.75
72.00
14.35
6.35
560.00
16.90
21.00
61.50
21.60%
10.24%
0.00%
-2.37%
3.57%
17.07%
3,644,100
3,657,300
16,700
133,200
166,700
31,200
1,938,415,838
2,615,538,528
59,895,000
699,949,068
535,707,499
96,000,000
33,825.36
18,308.77
33,541.20
11,549.16
11,651.64
6,912.00
1.31
0.43
48.00
4.48
2.14
9.07
13.32
16.28
11.67
3.68
10.16
7.94
1.95
2.27
3.14
0.64
2.20
2.07
0.30
0.10
8.50
0.70
0.50
0.00
1.72%
1.43%
1.52%
4.24%
2.30%
0.00%
35.00
2.30
1500.00
2.50
12.00
-12.30%
-39.02%
-4.81%
-19.90%
52.00
2.45
1500.00
4.95
15.20
50.00
2.65
1500.00
4.90
15.00
4.00%
-7.55%
0.00%
1.02%
1.33%
1,481,400
866,200
25,200
19,000
665,441,775
405,255,320
102,272
40,000,000
280,284,476
34,602.97
992.88
153.41
198.00
4,260.32
10.44
-0.04
-62.40
-1.04
-8.53
4.98
-61.25
-24.04
-4.76
-1.78
1.71
0.25
0.80
0.00
0.00
0.00
0.00
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
20.00
19.10
4.71%
763,600
194,625,000
3,892.50
2.13
9.39
5.33
0.38
1.90%
1.78
9.79
2.61
8.51
2.53
0.00%
3.91%
5.74%
1.77%
2.04%
0.00%
0.00%
0.00%
0.00%
1.67%
4.44%
15.00
11.10
120.00
521.00
14.00
250.00
2.65
7.15
4.40
1.35
22.00
0.00%
6.40%
-12.11%
-18.39%
-7.47%
4.05%
-9.09%
-5.13%
13.21%
11.10
133.00
741.00
16.95
294.00
3.90
7.80
100.00
1.90
45.00
11.10
133.00
813.00
14.05
290.00
3.90
8.00
100.00
1.90
44.75
0.00%
0.00%
-8.86%
20.64%
1.38%
0.00%
-2.50%
0.00%
0.00%
0.56%
1,000
167,500
79,300
846,600
158,800
65,000
3,030,500
47,900
3,840,066
19,525,446
100,000,000
254,851,988
790,774,356
210,000,000
161,866,804
12,868,124
1,530,000,000
75,708,873
42.62
2,596.88
74,100.00
4,319.74
232,487.66
819.00
1,262.56
1,286.81
2,907.00
3,406.90
-2.02
11.76
42.55
1.93
11.31
-0.85
0.99
0.15
-1.77
3.65
-5.50
11.31
17.41
8.78
25.99
-4.59
7.88
666.67
-1.07
12.33
526.32
0.27
0.73
0.00
5.20
42.50
0.30
6.00
0.00
0.00
0.00
0.00
0.75
11.75
6.41%
14.40
15.30
-5.88%
77,202,400
40,065,428,000
576,942.16
0.80
18.00
7.20
0.64
TO RECEIVE NATIONMOBILE ALERTS ON YOUR CELLPHONE, SMS THE STOCK YOU WANT, E.G. STOCKS KENGEN, TO 20667.
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NORMALRATES.
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MARKET DATA
MARKET DATA
Equities & Bonds
Weekly Kenya Treasury and Infrastructure Bonds
Share Price Performance Scorecard

SCORECARD AS AT 31ST JULY 2015
NAME
A BAUMANN
ATLAS DEVPNT & SPPRT SERV
ATHI RIVER MINING
BAMBURI
BARCLAYS KEN
BAT KENYA
BOC KENYA
BRITISH AMERICAN
CAR & GENERAL
CARBACID INV
CENTUM INV
CFC STANBIC BANK
CIC INSURANCE
CO-OP BANK
CROWN BERGER
DIAMOND KEN
EA CABLES
EA PORT CEM
EAAGADS
EA AFR BREW
EQUITY BANK
EVEREADY EA
EXPRESS KEN
FLAME TREE HLDNGS
G WILLIAMSON
HUTCHINGS BIEMER
HOME AFRICA LIMITED
HOUSING FIN
I&M HOLDING
JUBILEE HLDS
KAKUZI
KAPCHORUA
KEN ORCHARDS
KENGEN
KENYA AIRWAYS
KENYA COM BK
KENOLKOBIL
KENYA POWER
KENYA RE
KURWITU
LIBERTY HOLDINGS
LIMURU TEA
LONGHORN
MARSHALL
MUMIAS SUGAR
NAIROBI SECURITIES
NATION MEDIA
NATL BANK KEN
NIC BANK
OLYMPIA CAPITAL
PAN AFR INS
REA VIPINGO
SAFARICOM
SAMEER AFRICA
SASINI
WPP SCANGROUP
STANDARD GRP
STD CHART KEN
TOTAL KENYA
TPS (EA)
TRANSCENTURY
UCHUMI SUPER
UNGA GROUP
PREVIOUS
11.10
10.00
69.00
152.00
14.35
798.00
133.00
17.20
44.75
17.75
53.50
95.00
6.80
20.25
64.00
205.00
15.70
54.00
35.00
285.00
41.00
3.85
5.00
8.00
395.00
20.25
2.50
24.00
106.00
560.00
355.00
242.00
100.00
8.50
6.30
50.50
8.00
16.05
16.30
1500.00
21.50
1090.00
6.65
13.00
1.85
19.70
181.00
20.00
48.75
4.95
74.50
27.50
14.95
4.90
16.95
39.00
39.00
277.00
20.25
36.00
15.50
7.30
45.00
CLOSE
11.10
10.00
63.00
154.00
14.05
741.00
133.00
17.45
44.00
16.95
52.00
95.00
7.00
19.75
62.50
205.00
15.70
54.00
34.50
294.00
39.25
3.90
5.00
7.80
397.00
20.25
2.45
23.00
106.00
560.00
355.00
218.00
100.00
8.45
5.70
50.00
8.00
16.00
16.50
1500.00
21.75
1090.00
7.00
13.10
1.90
20.00
187.00
18.90
49.50
4.95
72.00
27.50
14.40
4.90
17.10
38.75
39.00
270.00
20.75
35.00
15.20
7.25
45.00
% 1D
0.00
0.00
-8.70
1.32
-2.09
-7.14
0.00
1.45
0.00
-4.51
-2.80
0.00
2.94
-2.47
-2.34
0.00
0.00
0.00
-1.43
3.16
-4.27
1.30
0.00
-2.50
0.51
0.00
-2.00
-4.17
0.00
0.00
0.00
-9.92
0.00
-0.59
-9.52
-0.99
0.00
-0.31
1.23
0.00
1.16
0.00
5.26
0.77
2.70
1.52
3.31
-5.50
1.54
0.00
-3.36
0.00
-3.68
0.00
0.88
-0.64
0.00
-2.53
2.47
-2.78
-1.94
-0.68
0.00
% 5D
0.00
0.50
-10.64
0.00
-3.10
-8.86
0.00
21.60
0.00
20.64
4.00
-3.55
10.24
-3.66
4.17
3.02
6.08
-3.57
-1.43
1.38
-6.55
0.00
-8.26
-2.50
1.79
0.00
-7.55
10.84
0.00
0.00
2.31
14.74
0.00
2.42
-17.39
-8.26
-1.23
1.27
-2.37
0.00
3.57
0.00
2.94
0.77
0.00
4.71
0.00
-2.33
3.13
1.02
17.07
0.00
-5.88
-2.97
8.57
1.97
14.71
-8.47
0.00
6.06
1.33
7.41
0.56
% 1M
0.00
-9.09
-16.00
0.00
-9.65
0.00
-4.32
-14.88
1.70
-6.61
-20.61
-16.67
-11.95
-9.20
-22.84
-9.29
-2.18
-6.09
-9.80
-3.29
-17.37
-4.88
0.00
-8.24
-4.11
0.00
-15.52
-15.60
-9.40
-0.36
15.64
67.69
0.00
-8.65
-22.45
-9.09
-5.33
-12.81
-7.82
0.00
-10.31
-9.17
-4.76
4.38
-19.15
0.76
-6.03
-2.07
-7.48
0.00
-4.64
0.00
-12.46
-2.97
3.95
-9.36
-2.50
-9.40
-4.60
0.00
18.29
-18.99
-3.74
% 3M
0.00
-6.98
-17.11
2.67
-11.91
3.06
-1.48
-20.68
-8.21
-17.32
-18.11
-23.39
-23.91
-4.82
-38.73
-10.87
-0.95
-1.82
4.55
-8.41
-20.30
-6.02
-13.04
-17.02
41.79
0.00
-20.97
-31.85
-16.54
-1.75
25.00
74.40
-9.09
-15.08
-19.72
-20.00
-15.34
-6.43
-7.30
0.00
-3.33
14.50
-12.50
9.17
-7.32
2.04
-20.09
-14.09
-16.10
-2.94
-40.98
0.00
-17.24
-11.71
3.95
-11.43
11.43
-21.51
-13.54
1.45
-3.49
-28.22
-8.16
% 6M
0.00
-16.67
-23.17
3.36
-13.00
-17.67
-3.62
-37.12
-18.64
-31.52
-16.13
-24.60
-29.65
2.60
-48.77
-15.98
-0.95
-16.92
-16.36
-5.47
-27.31
-1.27
-18.03
-4.88
33.22
0.00
0.00
-41.40
-14.52
21.21
61.36
45.33
-9.09
-10.58
-47.95
-14.53
-18.37
5.61
-5.98
0.00
-9.38
7.18
-29.65
16.96
-34.48
0.00
-32.25
-24.40
-25.00
-22.05
-38.98
0.00
1.77
-22.22
32.05
-12.43
5.41
-20.82
-21.70
-3.45
0.00
-42.69
11.80
% 1Y
0.00
-20.25
-12.00
-17.11
14.00
-10.14
-25.74
-0.56
-38.92
10.64
-25.78
0.00
3.67
-37.50
-16.67
-4.56
-30.77
0.00
0.68
-13.26
13.04
-28.57
37.85
0.00
0.00
-49.17
0.00
46.98
105.20
61.48
875.61
-8.15
-44.39
-8.26
-3.03
23.08
-8.59
22.19
62.69
-56.25
45.56
-20.83
-39.29
-34.26
-18.85
1.02
-42.86
0.00
18.03
-37.18
7.21
-15.76
10.64
-12.62
-11.70
-4.76
0.00
-40.08
39.53
Weekly Corporate Bonds

JULY 31 , 2015
25
BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE

ISSUE
MATURITY
ISSUED VALUE
DATE
DATE
IN MILLIONS
ISSUE NO.
CORPORATE BONDS
CENTUM BOND SENIOR UNSECURED FIXED RATE AND EQUITY LINKED NOTES
CTNB.BD.18.09.17/13.50
26-SEP-12
18-SEP-17
CTNB.BD.18.09.17/12.75
26-SEP-12
18-SEP-17
CTNB.BD.08.06.20/13
15-JUN-15
8-JUN-20
CTNB.BD.08.06.20/12.5
15-JUN-15
8-JUN-20
CTNB.BD.08.06.20/12.5V
15-JUN-15
8-JUN-20
CONSOLIDATED BANK OF KENYA LTD MEDIUM TERM NOTE PROGRAMME
CON.BD-FXD(SN)/2012/7YR
30-JUN-12
24-JUL-19
CON.BD-FXD(SBN)/2012/7YR
30-JUN-12
24-JUL-19
CON.BD-FR(SN)/2012/7YR
30-JUN-12
24-JUL-19
SHELTER AFRIQUE MEDIUM TERM UNSECURED NOTES
FXD 2/2012/3YR 2ND TRANCHE
17-DEC-12
14-DEC-15
MRM
FR (MRM) 2008/8YR
27-OCT-08
3-JAN-17
FXD (MRM) 2008/8YR
27-OCT-08
3-JAN-17
CFC STANBIC BANK SENIOR & SUBORDINATED BOND ISSUE
FR (CFC STANBIC) 2009/7YR
7-JUL-09
7-JUL-16
FXD (CFC STANBIC) 2009/7YR
7-JUL-09
7-JUL-16
KENGEN PUBLIC INFRASTRUCTURE BOND OFFER 2019
FXIB 1/2009/10YR
2-NOV-09
31-OCT-19
SAFARICOM LTD DOMESTIC MEDIUM TERM NOTE
FXD2 (SAFARICOM LTD) 2009/5YR
20-DEC-10
20-DEC-15
FR2 (SAFARICOM LTD) 2009/5YR
20-DEC-10
20-DEC-15
HOUSING FINANCE MEDIUM TERM NOTE
FXD (HFCK) 02/2012/7YR 2ND TRANCHE
22-OCT-12
14-OCT-19
FR (HFCK) 2010/7YR
26-OCT-10
2-OCT-17
FXD (HFCK) 2010/7YR
26-OCT-10
2-OCT-17
I&M MEDIUM TERM NOTE
FRN I&M-01/13/5.25
13-DEC-13
8-MAR-19
FXD I&M-01/13/5.25
13-DEC-13
8-MAR-19
BRITAM MEDIUM TERM NOTE
BRTB.BD.22/07/19-0037-13
22-JUL-14
15-JUL-19
UAP HOLDINGS MEDIUM TERM NOTE
UAP.BD.22.07.2019
28-JUL-14
22-JUL-19
NIC MEDIUM TERM NOTE
NIC.BD.09/09/19-0039-12.5
8-SEP-14
9-SEP-19
CIC INSURANCE GROUP LTD. MEDIUM TERM NOTE
CIC.BD.2.10.2019
8-OCT-14
2-OCT-19
CFC BANK MULTICURRENCY FIXED MEDIUM TERM NOTE
CFCB.BD.08/12/21-0042-12.95
15-DEC-14
8-DEC-21
CBA FIXED MEDIUM TERM NOTE
CBAB.BD.14/12/20-0041-12.75
22-DEC-14
14-DEC-20
EABL FIXED MEDIUM TERM NOTE
EABB.BD.19/03/18-0043-12.25
23-MAR-15
19-MAR-18
CHASE BANK FIXED MEDIUM TERM NOTE
CHBD.BD.02/06/22-0044-13.5
10-JUN-15
2-JUN-22
COUPON
TOTAL
(%)
VALUE(KSH)
2,917.10
1,250.80
3,899.22
2,100.77
2,100.77
13.500
12.750
13.000
12.500
1480.60
1965.00
1.00
13.250
13.600
NO OF
TRADES
BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE

ISSUE
MATURITY
DATE
DATE
JULY 31 2015
ISSUED VALUE
IN MILLIONS
COUPON
(%)
AV. TRADED
YIELD (%)
TOTAL
NUMBER
VALUE(KSH)
OF TRADES
TWO YEAR BONDS

FXD 3/2013/2YR
26-AUG-13
24-AUG-15
17,927.40
12.939
FXD 4/2013/2YR
24-DEC-13
21-DEC-15
25,251.00
11.553
FXD 1/2014/2YR
24-MAR-14
21-MAR-16
20,000.00
10.803
FXD 2/2014/2YR
26-MAY-14
23-MAY-16
20,130.15
10.793
FXD 3/2014/2YR
25-MAY-15
22-MAY-17
20,223.35
10.890
FXD 1/2015/2YR
23-FEB-15
20-FEB-17
23,592.55
11.470
FXD 2/2015/2YR
29-JUN-15
26-JUN-17
7,194.56
12.629
12.5700
100,000,000
12.5954
240,000,000
13.1887
1,531,900,000
19
14.1385
30,000,000
12.7900
340,000,000
14.2000
1,000,000
FIVE YEAR BONDS

FXD 2/2010/5YR
30-NOV-10
23-NOV-15
14,973.10
6.671
FXD 1/2011/5YR
31-JAN-11
25-JAN-16
22,083.10
7.636
FXD 1/2012/5YR
28-MAY-12
22-MAY-17
31,079.55
11.855
FXD 1/2013/5YR
29-APR-13
23-APR-18
20,240.75
12.892
FXD 2/2013/5YR
1-JUL-13
25-JUN-18
26,340.05
11.305
FXD 3/2013/5YR
25-NOV-13
19-NOV-18
14,937.80
11.952
FXD 1/2014/5YR
28-APR-14
22-APR-19
25,540.95
10.870
FXD 2/2014/5YR
23-JUN-14
17-JUN-19
16,418.25
10.934
FXD 1/2015/5YR
29-JUN-15
22-JUN-20
5,566.41
13.193
TEN YEAR BONDS

FXD1/2006/10YR
27-MAR-06
14-MAR-16
3,451.05
14.000
FXD2/2006/10YR
29-MAY-06
16-MAY-16
5,028.10
14.000
FXD1/2007/10YR
29-OCT-07
16-OCT-17
9,308.80
10.750
FXD1/2008/10YR
29-OCT-07
16-OCT-17
2,992.75
10.750
FXD2/2008/10YR
28-JUL-08
16-JUL-18
13,504.70
10.750
FXD3/2008/10YR
29-SEP-08
28-SEP-18
4,151.60
10.750
FXD1/2009/10YR
27-SEP-09
15-APR-19
4,966.85
10.750
FXD1/2010/10YR
26-APR-10
13-APR-20
19,394.15
8.790
FXD2/2010/10YR
1-NOV-10
19-OCT-20
18,849.90
9.307
FXD1/2012/10YR
30-JUN-12
13-JUN-22
16,803.75
12.300
FXD1/2013/10YR
1-JUL-13
19-JUN-23
24,301.46
12.371
FXD1/2014/10YR
25-MAY-15
26-MAY-25
5,063.88
12.180
25-SEP-06
11-SEP-17
4,031.40
13.750
FXD1/2006/12YR
28-AUG-06
13-AUG-18
3,900.95
14.000
FXD1/2007/12YR
28-MAY-07
13-MAY-19
4,864.60
13.000
ELEVEN YEAR BONDS

FXD1/2006/11YR
TWELVE YEAR BONDS
FIFTEEN YEAR BONDS

FXD1/2007/15YR
26-MAR-07
7-MAR-22
3,654.60
14.500
FXD2/2007/15YR
25-JUN-07
6-JUN-22
7,236.95
13.500
FXD3/2007/15YR
26-NOV-07
7-NOV-22
17,568.00
12.500
FXD1/2008/15YR
31-MAR-08
13-MAR-23
7,830.90
12.500
FXD1/2009/15YR
26-OCT-09
7-OCT-24
9,420.45
12.500
FXD1/2010/15YR
29-MAR-10
10-MAR-25
20,823.73
10.250
FXD2/2010/15YR
27-DEC-10
8-DEC-25
13,513.10
9.000
FXD1/2012/15YR
24-SEP-12
6-SEP-27
21,089.45
11.000
FXD1/2013/15YR
25-FEB-13
7-FEB-28
40,886.33
11.250
FXD2/2013/15YR
29-APR-13
10-APR-28
17,385.85
12.000
500.00
12.750
13,785
6,215
13.000
9,790
24,020
12.500
FXD1/2008/20YR
30-JUN-08
5-JUN-28
20,360.95
13.750
15,625.00
12.500
FXD1/2011/20YR
30-MAY-11
5-MAY-31
9,365.80
10.000
4,287
2,000
7.750
FXD1/2012/20YR
26-NOV-12
1-NOV-32
43,082.72
12.000
13.3053
300,000,000
2,969.10
1,167
5,864
13.000
28-JUN-10
28-MAY-35
20,192.50
11.250
14.0237
220,000,000
8.500
THIRTY YEAR BOND
3,429
226
(182+2%)
12.800
SDB 1/2011/30YR
28-FEB-11
21-JAN-41
23,888.95
12.000
6,000
13.000
18-SEP-23
43,447.35
12.000
13.7000
4,000,000
2000.00
13.000
IFB 1/2009/12YR
23-FEB-09
8-FEB-21
19,726.85
12.500
5514.00
12.500
IFB 2/2009/12YR
7-DEC-09
22-NOV-21
18,897.65
12.000
13.6500
1,700,000
5000.00
13.000
IFB 1/2010/8YR
1-MAR-10
19-FEB-18
15,908.05
9.750
5080.00
12.950
100,000,000
IFB 2/2010/9YR
31-AUG-10
19-SEP-19
32,871.55
6.000
7000.00
12.750
100,000,000
IFB 1/2013/12YR
30-SEP-13
15-SEP-25
38,841.68
11.000
11.7375
800,000,000
IFB 1/2014/12YR
27-OCT-14
12-OCT-26
35,060.55
11.000
IFB 1/2015/12YR
30-MAR-15
15-MAR-27
25,695.35
11.351
11.7025
1,716,500,000
20
TWENTY YEAR BONDS
TWENTY FIVE YEAR BOND
9047.35
12.250
4822.40
13.250
FXD1/2010/25YR
INFRASTRUCTURE BONDS
IFB 1/2011/12YR
3-OCT-11
26
MARKET DATA
Global Markets & Currencies
Currencies
Global Indexes
FTSE 100
Kenya Shilling
CURRENCY
US DOLLAR
STG POUND
EURO
SA RAND
KES / USHS
KES / TSHS
KES / RWF
KES / BIF
AE DIRHAM
CAN $
S FRANC
JPY (100)
SW KRONER
NOR KRONER
DAN KRONER
IND RUPEE
HONGKONG DOLLAR
SINGAPORE DOLLAR
SAUDI RIYAL
CHINESE YUAN
AUSTRALIAN $
SOURCE: CBK
BUY
102.43
159.83
111.96
8.05
33.25
20.54
6.68
14.88
27.89
78.73
105.86
82.52
11.87
12.51
15.01
1.60
13.21
74.51
27.31
16.49
74.68
SELL
102.61
160.16
112.18
8.07
33.41
20.68
6.83
15.01
27.94
78.91
106.08
82.67
11.90
12.56
15.04
1.60
13.24
74.67
27.36
16.53
74.86
MEAN
102.52
159.99
112.07
8.06
33.33
20.61
6.75
14.94
27.91
78.82
105.97
82.60
11.88
12.54
15.02
1.60
13.23
74.59
27.34
16.51
74.77
US Dollar
BACKGROUND
EURO
JAPANESE YEN
BRITISH POUND
SWISS FRANC
CANADIAN DOLLAR
AUSTRALIAN DOLLAR
SWEDISH KRONA
CHINESE YUAN
NORWEGIAN KRONE
BOSNIAN MARK
DANISH KRONE
RUSSIA ROUBLE
TURKISH LIRA
ICELAND KRONA
INDIAN RUPEE
POLISH ZLOTY
CZECH KORUNA
HUNGARIAN FORINT
UKRAINE HRYVNIA
ISRAEL SHEKEL
ALBANIAN LEK
BULGARIAN LEV
SERBIAN DINAR
CYPRUS POUND
ESTONIAN KROON
GEORGIAN LARI
THAI BAHT
GIBRALTAR POUND
CROATIAN KUNA
KAZAKHSTAN TENGE
LITHUANIA LITAS
LATVIAN LATS
MOLDOVAN LEU
MACEDONIA DENAR
MALTESE LIRA
ROMANIAN LEU
SLOVAK KORUNA
SERBIAN DINAR
ARMENIAN DRAM
UAE DIRHAM
ANGOLAN KWANZA
BURUNDI FRANC
BOTSWANA PULA
CONGO FRANC
CAPE VERDE ESCUDO
DIJIBOUTI FRANC
ALGERIAN DINAR
EGYPT POUND
ETHIOPIAN BIRR
GHANAIAN CEDI
GAMBIAN DALASI
ERITREA NAFKA
GUINEA FRANC
KENYA SHILLING
COMORO FRANC
LIBERIAN DOLLAR
LESOTHO LOTI
LIBYAN DINAR
MOROCCAN DIRHAM
MALAGASY ARIARY
MAURITANIAOUGUIYA
MALAWI KWACHA
MOZAMBIQUE METICAL
NIGERIAN NAIRA
RWANDA FRANC
SC RUPEE
SUDANESE DINAR
SUDAN POUND
ST HELENA POUND
SIERRALEONLEON
SAO TOME DOBRA
SOMALI SHILLING
SWAZILAND LILAGENI
TUNISIAN DINAR
TANZANIA SHILLING
UGANDA SHILLING
CFA FRANC
CFA FRANC
MAURITIUS RUPEE
SOUTH AFRICA RAND
ZIMBABWE DOLLAR
BID
1.10
124.23
1.56
0.96
1.30
0.73
8.59
6.21
8.19
1.76
6.79
60.28
2.78
134.14
64.12
3.78
24.61
281.29
21.05
3.78
126.89
1.78
59.99
0.40
11.70
2.27
35.15
1.56
6.91
187.36
2.85
0.51
18.70
55.94
3.41
4.01
21.55
109.27
476.70
3.67
125.15
1,541.00
0.10
912.00
100.30
176.60
99.20
7.83
20.65
3.72
38.74
14.98
7,212.00
102.40
445.10
84.00
12.72
1.37
9.82
3,280.00
322.00
509.63
37.81
199.00
685.00
12.64
200.02
2,025.50
1.57
3,877.00
21,634.00
665.00
12.72
1.97
2,120.00
3,425.00
597.25
597.25
35.32
12.74
378.00
ASK
1.10
124.26
1.56
0.96
1.30
0.73
8.60
6.21
8.20
1.81
6.80
60.39
2.79
134.46
64.13
3.78
24.62
281.69
21.15
3.78
127.41
1.78
60.19
0.40
11.71
2.28
35.17
1.56
6.92
187.66
2.85
0.51
18.80
56.28
3.42
4.01
21.60
109.64
479.70
3.67
126.40
1,561.00
0.10
942.00
101.40
178.70
99.62
7.83
20.86
3.82
39.44
15.48
7,712.00
102.60
446.10
89.00
12.76
1.38
9.84
3,300.00
330.00
514.65
38.69
199.10
698.00
13.28
201.02
2,035.60
1.57
3,977.00
22,981.00
672.00
12.77
1.97
2,130.00
3,435.00
605.25
606.25
35.52
12.74
381.00
DAILY
YTD
52 WEEK
3-YR
CLOSE
CHG
% CHG % CHG
THE GLOBAL DOW (WORLD)
2,531.33
-1.11
-0.04
1.2
2,639.52 2,378.15
-1.9
11.3
THE GLOBAL DOW EURO (WORLD)
2,181.79
20.31
0.94
12.1
2,305.98 1,752.10
20.2
15.6
DJ GLOBAL INDEX (WORLD)
327.25
-0.41
-0.13
341.62 301.71
0.5
10.7
DJ GLOBAL EX U.S. (WORLD)
228.27
-0.65
-0.29
1.4
248.65 217.05
-7.2
6.5
DJ ASIA-PACIFIC TSM (ASIA-PACIFIC)
1,462.84
-0.22
-0.02
2.6
1,619.39 1,384.31
-4.7
ALL ORDINARIES (AUSTRALIA)
5,653.10
43.5
0.78
4.9
5,954.80 5,131.00
0.5
9.8
S & P/ASX 200 (AUSTRALIA)
5,669.50
45.3
0.81
4.8
5,982.70 5,152.30
0.6
10.1
DOW JONES CHINA 88 (CHINA)
285.90
-8.67
-2.94
-3.5
408.69 185.09
49.2
13.6
SHANGHAI COMPOSITE (CHINA)
3,705.77
-83.4
-2.2
14.6
5,166.35 2,185.30
68.3
20.7
HANG SENG (HONG KONG)
24,497.98
-121.47
-0.49
3.8
28,442.75 22,585.84
-1
7.7
S & P BSE SENSEX (INDIA)
27,705.35
141.92
0.51
0.7
29,681.77 25,329.14
17.4
JAKARTA COMPOSITE (INDONESIA)
4,712.49
-8.63
-0.18
-9.8
5,523.29 4,712.49
-7.4
4.8
NIKKEI 300 (JAPAN)
334.98
3.29
0.99
17.8
340.64 238.07
28.3
31.2
NIKKEI STOCK AVG (JAPAN)
20,522.83
219.92
1.08
17.6
20,868.03 14,532.51
31.4
33.4
TOPIX INDEX (JAPAN)
1,647.21
13.27
0.81
17
1,679.89 1,177.22
27.7
31.1
KUALA LUMPUR COMPOSITE (MALAYSIA)
1,699.92
0.93
0.05
-3.5
1,878.89 1,673.94
-9.2
1.4
NZSX-50 (NEW ZEALAND)
5,891.85
21.08
0.36
5.8
5,927.75 5,049.63
14
18.7
KSE 100 (PAKISTAN)
35,730.01
53.52
0.15
11.2
36,056.68 27,774.43
17.9
35
PSEI (PHILIPPINES)
7,510.39
27.56
0.37
3.9
8,127.48 6,864.82
9.4
12.5
STRAITS TIMES (SINGAPORE)
3,249.52
-34.48
-1.05
-3.4
3,539.95 3,154.21
-3.7
2.3
KOSPI (SOUTH KOREA)
2,019.03
-18.59
-0.91
5.4
2,173.41 1,882.45
-2.7
3.1
COLOMBO STOCK EXCHANGE (SRI LANKA)
7,332.05
18.08
0.25
0.5
7,605.79 6,782.43
7.6
14.1
WEIGHTED (TAIWAN)
8,651.49
88.01
1.03
SET (THAILAND)
1,417.49
...
CLOSED
STOXX EUROPE 600 (EUROPE)
396.24
2.23
0.57
15.7
STOXX EUROPE 50 (EUROPE)
3,439.25
23.91
0.7
14.5
EURO STOXX 50 (EURO ZONE)
3,583.79
8.26
0.23
13.9
INDEX (REGION/COUNTRY)
HIGH LOW % CHG
% CHG
GLOBAL
ASIA PACIFIC
-7
9,973.12 8,512.88
-7.1
6.5
-5.4
1,615.89 1,408.07
-6.7
6.4
414.06 310.03
17.9
14.5
3,591.47 2,781.33
15.5
11.2
3,828.78 2,874.65
15
15.3
16.5
EUROPE
EURO STOXX (EURO ZONE)
369.59
0.96
0.26
15.6
392.35 288.41
17.4
ATX (AUSTRIA)
2,481.28
-0.7
-0.03
14.9
2,681.44 2,032.13
7.4
7.1
BEL-20 (BELGIUM)
3,726.85
7.47
0.2
13.4
3,905.71 2,887.73
20.3
17.2
PX 50 (CZECH REPUBLIC)
1,030.70
4.14
0.4
OMX COPENHAGEN (DENMARK)
894.69
-6.15
-0.68
OMX HELSINKI (FINLAND)
8,634.06
114.61
CAC 40 (FRANCE)
5,046.42
28.98
DAX (GERMANY)
11,257.15
45.3
BUX (HUNGARY)
22,537.66
FTSE MIB (ITALY)
23,396.09
AEX (NETHERLANDS)
ALL-SHARES (NORWAY)
8.9
1,058.40 901.30
7.7
4.4
32.5
921.05 611.68
33.8
26.6
1.35
11.3
9,374.42 7,010.83
13.9
17.8
0.58
18.1
5,268.91 3,918.62
18.8
15
0.4
14.8
12,374.73 8,571.95
19.7
18.4
216.12
0.97
35.5
22,850.53 15,686.69 28.6
8.5
147.19
0.63
23.1
24,031.19 18,078.97
13.7
18.7
495.17
5.88
1.2
16.7
509.24 376.27
22.5
14.6
687.49
4.21
0.62
10.9
711.22 575.27
0.8
13.1
WIG (POLAND)
52,011.81
-276.29
-0.53
1.2
57,379.45 49,593.68
3.9
8.9
PSI 20 (PORTUGAL)
5,739.69
40.7
0.71
19.6
6,324.88 4,606.25
-4
RTS INDEX (RUSSIA)
867.74
1.9
0.22
9.7
1,275.60 629.15
-28.8
-14.7
IBEX 35 (SPAIN)
11,168.60
-114.3
-1.01
8.6
11,866.40 9,669.70
4.3
18
SX ALL SHARE (SWEDEN)
526.52
1.78
0.34
11.1
564.90 405.51
18
17
SWISS MARKET (SWITZERLAND)
9,397.69
9.72
0.1
4.6
9,482.62 7,899.59
11.7
13.6
BIST 100 (TURKEY)
78,271.49
191.73
0.25
-8.7
91,412.94 72,943.50
-4.7
6.4
FTSE 100 (U.K.)
6,668.87
37.87
0.57
1.6
7,104.00 6,182.70
-0.9
5.4
FTSE 250 (U.K.)
17,521.00
8.19
0.05
8.9
18,263.46 14,426.74
13.1
16
AMERICAS
DJ AMERICAS (AMERICAS)
512.20
-0.18
-0.03
524.44 464.33
5.2
12.8
MERVAL (ARGENTINA)
11,224.56
-89.14
-0.79
30.8
12,593.07 7,581.72
37.1
66.8
-4.5
SAO PAULO BOVESPA (BRAZIL)
49,897.40
-347.74
-0.69
-0.2
61,895.98 46,907.68 -10.6
S & P/TSX COMP (CANADA)
14,382.78
80.98
0.57
-1.7
15,657.63 13,705.14
-6.2
6.9
SANTIAGO IPSA (CHILE)
3,042.70
-13.43
-0.44
-3.9
3,377.92 3,018.91
-4.9
-10.5
IPC ALL-SHARE (MEXICO)
44,373.31
-97.98
-0.22
2.8
46,357.24 40,225.08
1.3
2.4
CARACAS GENERAL (VENEZUELA)
15,471.80
-1.53
-0.01
301
15,537.75 2,139.62
615
297.8
SOURCE: WSJ MARKETS
Global Indices
NAME
LOCATION
LAST
NET.CHNG PCT.CHNG
OPEN
HIGH
LOW
CLOSE
DJ INDU AVERAGE
NEW YORK
17,745.98
-5.41
-0.03%
17,743.24
17,761.25
17,640.85
17,751.39
FTSE EUROTOP 100
LONDON
3,138.61
-8.73
-0.28%
3,144.34
3,154.52
3,133.56
3,147.34
XETRA DAX PF/D
FRANKFURT
11,248.83
-8.32
-0.07%
11,271.31
11,298.10
11,232.45
11,257.15
CAC 40 INDEX/D
PARIS
5,054.57
8.15
0.16%
5,063.47
5,080.62
5,051.87
5,046.42
FTSE MIB/D
MILAN
23,325.26
-70.83
-0.30%
23,459.38
23,459.38
SMI PR/D
SWITZERLAND
9,399.09
1.40
0.01%
9,405.81
9,427.65
9,392.57
9,397.69
HANG SENG INDE/D
HONG KONG
24,636.28
138.30
0.56%
24,650.93
24,661.19
24,467.83
24,497.98
NIKKEI 225 INDEX
TOKYO
20,585.24
62.41
0.30%
20,506.55
20,585.24
20,466.80 20,522.83
ALL ORDINARIES
AUSTRALIA
5,681.69
28.62
0.51%
5,653.10
5,682.70
5,653.10
5,653.07
STRAITS TIMES/D
SINGAPORE
4,115.44
-52.46
-1.26%
4,131.03
4,135.17
4,092.39
4,167.90
SSE COMPOSITE/D
SHANGHAI
3,664.01
-41.76
-1.13%
3,655.67
3,729.51
3,620.17
3,705.77
S&P SENSEX/D
MUMBAI
28,114.56
409.21
1.48%
27,814.51
28,161.17
27,814.51
27,705.35
23,293.35 23,396.09
NAME
ANGLO AMERICAN/D
ASSOC.BR.FOODS/D
ADMIRAL GROUP/D
ABDN.ASSET.MAN/D
AGGREKO/D
ANTOFAGASTA/D
ARM HOLDINGS/D
ASHMORE/D
AVIVA PLC/D
ASTRAZENECA/D
BAE SYSTEMS/D
BARCLAYS/D
BRIT AM TOBACC/D
BG GROUP/D
BR LAND CO/D
BHP BILLITON/D
BUNZL/D
BP/D
BURBERRY GRP/D
BT GROUP/D
CARNIVAL/D
CENTRICA/D
COMPASS GROUP/D
CAPITA PLC/D
CRODA INTL/D
CRH/D
DIAGEO/D
MAN GROUP/D
EVRAZ PLC/D
EXPERIAN/D
FRESNILLO/D
G4S/D
GKN/D
GLENCORE/D
GLAXOSMITHKLIN/D
HAMMERSON/D
HARGREAVES LS/D
HSBC HOLDINGS/D
ICAP PLC/D
IAG/D
INTERCONT HOTE/D
IMI PLC/D
IMPERIAL TOBAC/D
INTERTEK GROUP/D
ITV/D
JOHNSON MATTHE/D
KAZ MINERALS/D
KINGFISHER/D
LAND SECS GROU/D
LEGAL & GENERA/D
LLOYDS BNK GRP/D
MEGGITT PLC/D
MARKS & SP./D
MORRISON SUPMK/D
NATIONAL GRID/D
NEXT/D
OLD MUTUAL/D
PETROFAC/D
POLYMETAL INT/D
PRUDENTIAL/D
PEARSON/D
RECKIT BNCSR G/D
ROYAL BANK SCO/D
RDS A/D
RELX/D
ROYAL DTCH SHL/D
REXAM/D
RIO TINTO/D
ROLLS ROYCE PL/D
RANDGOLD RES./D
RSA INSRANCE G/D
SABMILLER/D
SAINSBURY(J)/D
SCHRODERS/D
SCHRODERS NV/D
SAGE GROUP/D
SHIRE/D
STANDARD LIFE/D
SMITHS GROUP/D
SMITH&NEPHEW/D
SERCO GROUP/D
SSE PLC/D
STANDRD CHART /D
SEVERN TRENT/D
TATE & LYLE/D
TULLOW OIL/D
TESCO/D
UNILEVER/D
UNITED UTIL GR/D
VEDANTA RES/D
VODAFONE GROUP/D
WEIR GROUP/D
WOLSELEY/D
WPP PLC/D
WHITBREAD/D
KENYA AIRWAYS/D
LAST
787.30
3175.00
1459.00
361.10
1183.00
557.36
1003.99
262.90
513.50
4288.50
474.00
288.14
3776.00
1090.00
832.50
1157.00
1820.00
395.40
1573.00
465.40
3408.00
263.70
1020.00
1286.00
3003.00
1897.00
1792.00
161.10
100.30
1189.00
631.50
272.30
314.90
204.85
1383.33
658.14
1187.00
576.10
514.50
538.00
2642.00
1049.00
3352.00
2424.00
277.70
2887.00
160.20
357.40
1293.00
258.30
83.82
459.70
537.00
179.10
841.10
7930.00
210.90
877.00
447.10
1500.00
1189.00
6119.00
339.90
1842.50
1109.00
1861.50
550.00
2430.50
748.50
3748.00
512.00
3357.00
259.90
3127.00
2442.00
513.50
5625.00
450.50
1120.00
1178.00
125.70
1504.00
972.40
2183.00
547.50
247.50
211.85
2887.50
877.00
376.20
241.00
1528.00
4221.00
1461.00
5155.00
5.70
CLOSE NET.CHNG
805.70
-18.40
3159.00
16.00
1468.00
-9.00
363.30
-2.20
1215.00
-32.00
580.50
-23.50
1011.00
-8.00
263.40
-0.60
518.50
-5.00
4319.50
-31.00
473.10
0.90
287.05
1.10
3740.00
36.00
1079.50
10.50
829.50
3.00
1170.00
-13.00
1820.00
0.00
401.00
-5.60
1564.00
9.00
467.95
-2.55
3376.00
32.00
266.60
-2.90
1031.00
-11.00
1279.00
7.00
2988.00
15.00
1879.00
18.00
1811.00
-19.00
160.50
0.60
99.40
0.90
1176.00
13.00
645.00
-13.50
273.00
-0.70
315.90
-1.00
211.00
-6.15
1389.00
-6.00
655.00
3.00
1182.00
5.00
577.10
-1.00
513.00
1.50
542.00
-4.00
2743.00
-101.00
1078.00
-29.00
3349.00
3.00
2438.00
-14.00
271.60
6.10
2891.00
-4.00
169.40
-9.20
359.30
-1.90
1283.00
10.00
260.10
-1.80
86.02
-2.20
455.80
3.90
533.00
4.00
181.10
-2.00
842.70
-1.60
7885.00
45.00
212.80
-1.90
872.00
5.50
451.40
-4.30
1520.00
-20.00
1193.00
-4.00
6104.00
15.00
342.40
-2.50
1839.00
3.50
1097.00
12.00
1861.00
0.50
549.50
0.50
2456.50
-26.00
749.50
-1.00
3813.00
-65.00
517.00
-5.00
3390.50
-33.50
260.80
-0.90
3110.00
17.00
2432.00
10.00
515.00
-1.50
5590.00
35.00
451.90
-1.40
1135.00
-15.00
1167.00
11.00
126.70
-1.00
1510.00
-6.00
983.10
-10.70
2196.00
-13.00
544.00
3.50
246.60
0.90
214.65
-2.80
2889.00
-1.00
883.00
-6.00
385.00
-8.80
241.05
-0.05
1555.00
-27.00
4210.00
11.00
1461.00
0.00
5145.00
10.00
6.30
-0.60
PCT.CHNG
-2.28%
0.51%
-0.61%
-0.61%
-2.63%
-4.05%
-0.79%
-0.23%
-0.96%
-0.72%
0.19%
0.38%
0.96%
0.97%
0.36%
-1.11%
0.00%
-1.40%
0.58%
-0.54%
0.95%
-1.09%
-1.07%
0.55%
0.50%
0.96%
-1.05%
0.37%
0.91%
1.11%
-2.09%
-0.26%
-0.32%
-2.91%
-0.43%
0.46%
0.42%
-0.17%
0.29%
-0.74%
-3.68%
-2.69%
0.09%
-0.57%
2.25%
-0.14%
-5.43%
-0.53%
0.78%
-0.69%
-2.56%
0.86%
0.75%
-1.10%
-0.19%
0.57%
-0.89%
0.63%
-0.95%
-1.32%
-0.34%
0.25%
-0.73%
0.19%
1.09%
0.03%
0.09%
-1.06%
-0.13%
-1.70%
-0.97%
-0.99%
-0.35%
0.55%
0.41%
-0.29%
0.63%
-0.31%
-1.32%
0.94%
-0.79%
-0.40%
-1.09%
-0.59%
0.64%
0.36%
-1.30%
-0.03%
-0.68%
-2.29%
-0.02%
-1.74%
0.26%
0.00%
0.19%
-9.52%
LI E
MANAGEMENT
FINANCE
Potential isks to
watch out fo on the
investment path
Page 28
LAW
Why succession
planning is key
fo family-owned
entepises Page 30
PERSONAL FINANCE
Philosophies that can help you achieve success

PERFORMANCE Here are character traits, skills, mindsets and abilities to adopt if you want to make it beyond your biggest dreams
BY ADAM TOREN
he ability to create success is the

product of a unique combination
of skills, mindset and abilities that
you can tap into again and again to achieve
your biggest dreams.
Many successes will be started, some
will end, but more often they will morph
along the way, because success is never
a nal destination. The mega successful
never restrict themselves to one prosperous venture, but rather simultaneously
manage multiple streams.
Whether youre looking to achieve
your rst major success or youve got
many under your belt already, here are
some great tips.
personally means phenomenal health.

That has meant putting my health as a
primary motivation, and I take good care
of my mind and body.
These things wont be a priority to you
unless you remember the bigger picture
of your life as you build your success in
business.
Treat everyone well
The golden rule has an almost sacred place

in business for me. Treat others the way you
would want to be treated. Some people Ive
come across havent treated me well.
I cut those people out of my life immediately. Im not interested in spending time or
doing work with people who are dishonest,
unkind or operate in other ways that dont
match how I want to be treated. Conversely,
Dene success but let it be adaptable
I expect that I will treat the people I meet
Many successful entrepreneurs and lead- with honesty, respect and patience.
ership coaches will tell you that you need
As the saying goes, be nice to everyone
to dene what success looks like ahead of on your way up, because you may meet
time. This is something that I do as part them again on your way down.
of my vision and mission on any business
Luckily I havent had a lot of down
venture. However, remain adaptable to how time in my life, but Ive been astounded by
success looks when it actually arrives.
the number of times people have come to
I can say that my actual achievements my aid, helped my family, made a connection for me or have in some
have nearly always looked difother manner enriched
ferent than my original denition of success. Thats not bemy life for no benet to
Dene success,
cause they werent successful
themselves.
but be open to the
or exciting milestones; its that
there are an innite number of
Maintain a sense of
possibility it will
variables that will go into each
humility
be the essence,
of your successes and each one
Maintain an attitude
will indelibly leave their marks
of perspective that
not the cabon
on you.
doesnt put you as the
copy, of you
actual centre of the uniAs you arrive at the dollar
verse.
amount, business valuation or
oiginal vision
First, if you arent the
other moment of success, it always looks a little dierent than
centre of the universe,
how you originally imagined. So
you can take yourself a
yes, dene success, but be open to the pos- lot less seriously and that will help you
sibility it will be the essence, not the carbon to laugh more, take more risks and not
copy, of your original vision.
take failures personally.
Failures happen to everyone and they
Remember the total picture
arent deadly. Next, humility keeps your
Maybe its because Ive enjoyed a life where brain open to new ideas. An inquisitive
my most successful partnership has always person who listens can learn a lot more
been with my brother, but I just knew that than a know-it-all.
family was absolutely essential in my genFinally, people tend to enjoy working
eral vision of my lifes success.
around someone who is not afraid to try
When I met my wife it was clear that new things, listen to others and value outthis was the woman I wanted to be a part side opinions. A little humility can go a long
of my success journey, too, and I wanted way toward your success.
to be a part of hers.
That has required patience, understand- Celebrate your achievements
ing and compromise for us both as weve The roads youll travel during your varibeen married and raised our children, but ous streams of successful endeavours will
for me, the bigger picture of success just have many milestones. Dont be afraid to
wouldnt be complete without my family. stop and celebrate those small successes
I am also adamant that success for me along the way.
Its often motivating to periodically stop and acknowledge how far youve come.
Take time to celebrate as
you go.
Toren is an awardwinning author, serial
entrepreneur and investor. He co-founded
YoungEntrepreneur.com,
the largest social networking forum for entrepreneurs.
Dene what success looks like

ahead of time, but stay exible. FILE
27
28
Life: Management
MITIGATION Adopt safety strategies early to avoid losing money, getting sued or ruining your brand or reputation
Potential isks to watch out

fo on the investment path
BY PETER WERE
otential investors are normally eager to start businesses, oblivious of,

or sometimes ignoring, the potential
risks. Sooner or later, these risks rear their
ugly heads and if not properly mitigated may
result in imminent collapse of business.
Technology risk
Technology risks threaten assets and processes vital to your business and may prevent
compliance with regulations, impact protability and damage your companys reputation in the marketplace.
Information technology risk can result
from human error, malicious intent, or
even compliance regulations. Protecting
information assets like operational and
nancial data, customer data, intellectual
property, personally identiable information, or protected health information is
only the beginning.
Its also important to identify and verify
events such as data breaches, network failure,
electronic fraud and other suspicious activities before they result in nes and expenses,
damage your brand or reputation, prevent
you from reaching your business goals or
even lead to a lawsuit.
Market and supply chain risk

There is always the risk that the marketplace will not accept your new products. This
happens often for startups even after much
money has been spent upfront on marketing.
Buyers may be slow to adopt a new product
because of loyalty to other existing brands.
Strive to oer product attributes that competing brands dont oer.
Supply chain risk results from a mismatch
between supply and demand.

With todays focus on eciency, lean
just in time inventories, outsourcing,
supply base reduction, centralised distribution, more and faster product launches,
low cost country sourcing and supply chain
globalisation, companies are at greater risk
than ever before.
To be ready for any eventuality that
may disrupt the supply chain rms should
maintaing extra inventory of all of the raw
materials or component parts used in production in case of a demand spike, supply
shortage, missed shipment or late delivery
of raw materials.
Other strategies include reserved capacity, order expediting, developing alternative
distribution methods and dual sourcing.
Competitive risk
There
are
risks
that
other
rms will emulate your product
oerings and use their superior distribution
or marketing reach to crowd you out of the
marketplace. There is also a risk that dozens of
copycat businesses will emerge and lower the
margins and unique value oering that the
company you are investing in provides.
To mitigate this:
Identify your competitors. Locate
other businesses
in the same segment. Gather
information re-
garding their products and future. Study

the areas of their research and how much
they have invested. Evaluate whether these
competitors pose a threat to your market
position.
Focus on customers. Develop feedback
mechanisms to keep track of customer expectations. Before you settle on a new product, check if its going to satisfy consumers
needs. Determine what you need to include
in order to make sure people prefer it over
your competitors. Maintain balance between
technological development and customer
comfort.
Management risk
This is the biggest risk for young
companies, as often, the person who
can write code well, bake amazing bread or write lots of books
on a small topic is not also the
person who is an excellent CEO. Many
times, the CEO will need to grow faster
than the company is growing, or be replaced.
If you wake up to the fact that you as the
founder of the company may
not have
the capacity to
grow at
the same
rate as
the company,
then it
makes
business sense to hire someone with the

type of speed that the company needs.
Finance risk
If a product works and sells well, the
company may need additional nancing
to fuel the expected growth, buy inventory, enter new markets or expand
distribution
channels.
Sometimes clauses imposed by early investors make it dicult for future investors to
participate.
Sometimes obtaining funds, especially
debt, at reasonable rates may be dicult.
Also, when private equity is the alternative,
investors may want shareholding that will
dilute the controlling interest of original
founders.
Companies should strive to maintain good
credit rating and also adopt robust corporate
governance. The company may thus attract
funds a lower cost.
Mr Were is a consultant with Anchorage
ltd, a nancial and business advisory rm
based in Nairobi.
How to cope with stessful wok demands

BY JONATHAN COOK
tress can be a killer. For many

people it leads to poor health,
reduced productivity, damaged relationships and general unhappiness. Distress occurs when our
mental picture of the demands facing
us makes them look bigger than our
ability to cope with them.
The rst place to make a dierence
is in reducing the actual demands on
us. This means either reducing the volume of work you face, or changing the
nature of your work.
There are a number of factors in
the work environment that can increase stress. These include role confusion (not knowing who is responsible
for what); competing or confusing de-
mands; lack of resources or information needed to carry out a task; poor

career prospects for development; unhappy or competitive relationships;
uncomfortable or noisy oces and
discouraging leadership style that is
always shouting about urgent work
that has not been done and never appreciating achievement.
If you are a manager, you can make
a substantial contribution to the health
and happiness of your sta by reviewing the list and nding ways to make
the work place less stressful.
If it is the volume of your work
that is the problem, take charge of
your schedule. Decide what is most
important and let the other demands
go. Break the big mountainous tasks
up into smaller tasks. If you can, make
arrangements with others to take over

the tasks that are less important, or let
those aected know that you will not
be able to do them.
Making those decisions will already
give you a sense of being in control.
And letting everyone know in good
time means that you will not have to
cope with the burden of feeling guilty
about letting others down.
If it is the nature of the work that
is the problem rather the volume of
work, then you need to make some
tough decisions. Are you in the wrong
job? Are there ways of getting what
you dislike in your job done more
easily, or by someone else, so that you
have more time for the parts you do
enjoy?
The second way to cope better with
stress is to increase your coping skills.

This can include learning to manage
your time and productivity better,
making sure you are physically, mentally, spiritually and socially healthy
and learning new skills to make you
more ecient.
The third place to intervene is to
change the picture you have about the
demands on you and your resources.
Look at the problems you face and instead of telling yourself how dreadful
they are, try telling yourself that in
a years time you will probably have
forgotten all about them. You are in
control and can decide what to do and
when to do it.
Mr Cook is chairman and chief
learning ocer of the African Management Initiative.
Dont let stress overwhelm you; learn coping mechanisms. FILE
29
Life: Management
Signs you m is
headed fo doom and
how to tun it aound
uccess in entrepreneurship sometimes means

knowing when to cut your losses and move on be
it a new venture or a pivot of your current business
strategy. As hard as it is to let go of a business made of
your blood, sweat and tears, it can be the best decision in
the long run. Ive seen an entrepreneur hang on far too
long, taking a protable business to nearly seven gures
in debt. Dont let this be you.
Before you company gets to that point, pay attention
to these signs and make a change before its too late.
Your market disappeared.

To combat this, you have to adapt. A talented entrepreneur told me that the minute you release your new
product, its old. Baking this mentality into your core
values will ensure that youre continually pushing for innovation and wowing your customers.
To maximise your chances of nding a job that ts you and your desired career path, articulate what you are looking for and reach out to your
networks. FILE
Steps to help you nd a geat job

TIPS Generating employer interest requires thought, research and strategy
ob seekers can spend a lot of time trolling job sites and sending resumes en
masse without culling much of an
employer response let alone landing an
interview.
Eective job search and generating employer interest requires careful thought,
research and strategy. To help maximise
your chances of nding a job that ts you
and your desired career path, consider following these six steps.
Create a list of jobs that meet your

criteria
Once youre able to articulate what youre
looking for in a job, use this criteria to guide
you when searching job sites and deciding
where to apply. Create a list to keep track of
information.
Read the job description carefully
Reading the job description is a major timesaver because you wont be applying for jobs
for which you are an unlikely candidate.
Understand your job search criteria
Companies generally have limited exFirst, be able to articulate what it is you are ibility on their mandatory requirements, be
looking for in a job. Figure out your top ve it a particular university degree or specic
priorities whether it is company culture job experience, Sandusky explains. [However] you should apply to a position if you
or a specic job position.
are condent you can do
If you understand what motivates you as an employee, it will
the job, just be prepared
be easier to target your applicato explain precisely how
Figue out you
tions to opportunities that match
your skills or experienctop ve pioities
your skills and ambitions, says
es are applicable to the
Paul Sandusky, vice-president of
opportunity at hand.
whethe it is
talent acquisition and developcompany cultue
ment at Ceridian, an HR software
Customise your
company.
resume and cover
o a specic job
Also be exible. You dont
letter
position
Once you have your hit
want your specicity to cost
list of jobs that meet
you your dream job at your
your criteria, customdream company, advises Mariah DeLeon, vice-president of
ise both your cover letpeople at workplace ratings and review ter and resume to speak to the company,
position and job requirements.
site Glassdoor.
She suggests that if you get to the point Having multiple versions of your resume
where youre interviewing for a position at can be an eective way of tailoring your
a company you want to work for but that experience to a particular role or industry,
isnt quite the right t, be candid with HR Sandusky says.
DeLeon recommends that after applying
or the recruiter about your expertise and
online, try to email your resume to someone
desire to work there.
Theres always the possibility of a bet- who is likely in the hiring and decision-makter opportunity opening up within that ing mix, such as a manager or director in the
department youd like to work in.
company.
Activate your referral network

Employee referrals and word-of-mouth
are the most common means of external hiring. Many job openings are not advertised,
which is why attending relevant industry
events and conferences, work-related lectures, seminars or training sessions can
pay o.
Reach out to alumni networks and interest-driven organisations and meet-up
groups to let people know youre looking
and ask about open positions.
Also, let your friends know that you are
looking. Chances are, at least one of your
friends is a connector one of those people
who knows everybody and builds relationships quickly who knows of several people
who can provide either guidance, a connection or a referral.
Follow up
If youve submitted an application and
havent heard a response, send a follow-up
email to ensure HR or the hiring manager
has received the application, DeLeon says.
Your note can be short, but you should
reiterate why you want to work for the
company and what you bring to the table
that will ultimately help the business move
forward.
Following up after an in-person or phone
interview ideally on the same day of the
interview is not only a common courtesy
but it reinforces that you are genuinely interested in the position while helping keep
your name top of mind amongst those who
are hiring, Sandusky says.
While there isnt a magic bullet when
it comes to nding a job, focusing your job
search on quality over quantity is generally
the way to go.
- ENTREPRENEUR
No one understands your product or service.

Prior to nding entrepreneurial success, my brother
and I pursued a charitable venture called Painting with
a Purpose. It doubled as a sweepstakes programme that
sold digital copies of paintings created by children with
special needs. Confused? So were our customers. Trying
to create an entirely new industry and product simultaneously nearly killed us.
You dont have to reinvent the wheel to be innovative.
Often, selling a really good wheel is more than enough. Before giving up, consider how your product or service could
be modied. One small tweak may be all you need.
You and your team have lost the drive.

Many entrepreneurs thrive on the challenging risk
of starting something new. After the fast-paced growth
period is over and the business model begins to work,
dont let monotony blow out your entrepreneurial ame.
Your passion needs to stay constant to persevere after the
honeymoon is over.
Constantly nd new things about your business to fall in
love with and share these with your team to keep the spark
alive. Outsource the tasks that no one is in love with.
Youve got a bad apple.

I once worked for a company that appointed a new
manager with no prior management experience. In less
than three years time, he crushed morale, decimated
employee retention and dropped our sales numbers by
nearly 85 per cent.
The next time you underestimate a bad apples impact,
picture post-Godzilla Tokyo to see where your business
could be heading.
Getting rid of these people is not only great for your
business but also your teams morale.
Im not saying that every bad apple should be red.
Simple repurposing will sometimes get the job done.
Youre not making money.

Dried up cash ow can crush dreams faster than the
panel on Shark Tank. While it may seem unimaginable to
give up on the business youve invested so much time and
capital in, you have to know when to cut your losses.
Before closing shop, identify the problem and determine whether its controllable.
If it isnt controllable, do a thorough review of why
the business failed. If your business still cant be saved,
determine exactly where you went wrong. Remember
that lesson.
- ENTREPRENEUR
30
Life: Law
Why succession planning is key

fo family-owned entepises
SUCCESS Early
TIMES CROSSWORD 24,923

3
10
12
11
14
13
planning and
communication
prevents strife that
can kill a venture
16
15
18
17
19
23
22
21
20
24
25
BUSINESS LAW
26
27
CATHY MPUTHIA
amily owned enterprises ( FEPs)

can learn a lesson or two from
the manner in which prominent
families globally prepare for succession.
FEPs are businesses whose ownership is
largely or totally controlled by members
of the same families. A number of listed companies and large multinational
companies started out as FEPs and the
ownership was passed on to the new
generation.
The secret behind establishing a successful FEP lies in planning for succession. One of the challenges FEPs face is
the fact that they are owned by family
and they are, therefore, bound to be affected by familial relationships. When
the relationships are sour, business becomes hard to do.
In one of Kenyas leading divorce
cases, business went sour after the
couple who owned a hotel divorced.
The court ordered that the business be
divided into two as the shareholding
was split 50-50.
When familial relationships are
strained and each party is clamouring
for a share of the business, the business
is bound to die. There are several cases,
especially of large retail outlets, where
strained family relationships stress the
business. So, what should FEPs do to live
for generations?
FRIDAYS SOLUTIONS
For familyowned
businesses
to survive for
generations,
succession
planning is
mandatory.
FILE
First the owners should have a

shareholders agreement that is as
detailed as possible. One of the important clauses of this agreement is
the one on dispute resolution.
Dispute resolution for FEPs is
sensitive given that the relationship goes beyond the boardroom.
The lawyer should be able to make
a dispute resolution clause that is
customised to include these unique
needs. The agreement, for example,
can lay out who can join the company
as a shareholder.
We all plan for our retirement
and have pension plans and other
retirement packages in place. FEPs
should also begin preparing for succession early.
There is that age when one is not
as active as he/she used to be and
wants to hand over the company to
the children. It would not be prudent
to do this abruptly.
One can begin grooming a successor from an early age. First identify
the successor and let all others know
the chosen leader. Many disputes
arise when the family begins ghting over who the successor should
be. Appoint a successor early.
A number of legal instruments

can help you achieve this goal. One
is to expressly cede your shareholding in the business to the chosen successor by means of a will. Once the
successor is chosen, begin mentoring him/her.
I have seen an interesting trend
with Kenyan professionals. If a man
is a doctor, he will prefer his children
to study the same course. Why? I believe at the back of their minds they
are looking for a successor.
Groom the successor by training
them professionally and mentoring.
Let the successor begin running the
business while the founder maintains
an oversight role.
One of the main challenges of
FEPs occurs when the founders
want to stay in power for too long.
There comes a time when power has
to be shared. The timing has to be just
right. If it is done prematurely, the inexperience of the successor will be a
stumbling block. If done too late, the
successors may lose interest altogether and go on to something else.
Mputhia is a partner with Muthoga Gaturu
cmputhia@mgmail.co.ke
WORD WHEEL
TIMES 25,922
(Solution 529)
COMPOSER
CODEWORD
Solution no. 3195
WORD BUILDER
Solution no. 543
Quick Crossword 2203

Across:
1 Bali
4 Whine, (Barley
wine)
8 Released
9 Pure
10 Band
11 Particle
12 Stupid
14 Deduct
16 Flounder
19 Ajar
20 Data
21 Transact
22 Trend
23 Trek.
Down:
2 Amend
3Insipid
4 Wader
5 Implied
6 Enrol
7 Depart
13 Plumage
14 Dormant
15 Chancy
17 Least
18 Dated
19 Aisle. Help
with
G L A S S
S O F T S O A P
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P R IV A T E P A T IE N T
E
S
D
W
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S
A B S T IN E N T
G U S T O
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N
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I
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S O D D E N
W O B B L IN G
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S
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A R T E S IA N
P A R D O N
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D E E P F R IE D
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C IR C U M L O C U T IO N
N
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R E D E E M E D
T IG R E
SUDOKU 049
Across
1 Job description its this kind of
work (8)
9 A large brain operation incomplete,
however (8)
10 Its also tube exit, if you stick to the
right (4)
11 Romantic oldies any DJ or a band
could provide (5,3,4)
13 Written in captivity (6)
14 Demand by revolutionary movement
that shows whos with us (4-4)
15 Food produced by agitation in prison
by penal reformer (4-3)
16 Nurse seen in shady area beside
hospital (7)
20 Polluted water from current I drink
(4,4)
22 Vegetable what snail cant
manage without it? (6)
23 With fonder heart, was caring and
attentive? Not so (6-6)
25 Cast thats said to show annoyance?
Just a little (4)
26 Weakening of concentration, until I do
otherwise (8)
27 People working collectively to call for
class action (8)
Down
2 Swift proposal was not so shameless
(8)
3 Bank linkage for capital movements
said to be falling down (6,6)
4 A powerful passage in political
parlance (8)
5 Men in bar making lms, including
Western (7)
6 With great speed, a locks opening
without any key (6)
7 Marks successor in Bible you refer to,
nally (4)
8 Dealer producing clubs a second
later (8)
12 Steps taken to get on board in plant
(6,6)
15 Pirates last prize escorted by vessel
into ocean (8)
17 Misfortune I had, in a manner of
speaking (8)
18 Nuns are converted, admitting old
foolishness (8)
19 A new coin covering one thats far
from new (7)
21 Part of Ireland area, none the less,
not on border (6)
24 Advocate using small type (4)
SUDOKU PUZZLE
How to play
050
Fill the grid so that every row, every column and every 3x3 box
contains 1-9.
You solve the puzzle with reasoning and logic and not
mathematical ability
Leaked IAAF doping les eveal

extaodinay level of cheating
ATHLETICS Whistleblower data shows athletes have doped with impunity
he World Anti-Doping Agency (Wada)

clean athletes worldwide. The les belong
says it is very alarmed after fresh alleto world governing body the International Asgations of suspected doping emerged
sociation of Athletics Federations (IAAF), but
in a leak of test data.
have been leaked by a whistle-blower.
The Sunday Times and ARD/WRD used
The Sunday Times and German broadtwo of the worlds foremost anti-doping excaster ARD/WRD have obtained access to
perts, scientists Robin Parisotto and Michael
the results of 12,000 blood tests from 5,000
athletes. According to the newspaper, the
Ashenden, to review the data.
evidence - which has been seen by the
BBC - reveals the extraordinary exAccording to the
tent of cheating by athletes at the
experts, the database
worlds biggest events.
reveals:
Wada says it has
A third of medals (146, including
viewed the ARD/
55 golds) in endurance events
WRD documentary
at the Olympics and World
- Doping - Top SeChampionships between
cret: The Shad2001 and 2012 were won by
athletes who have recorded
owy World of
suspicious tests. It is claimed
Athletics.
none of these athletes have been
Its presistripped of their medals.
dent,
Sir
More than 800 athletes - one in
Craig Reedie,
seven
of those named in the les said his organisahave recorded blood tests described by
tion was very
one of the experts as highly suggestive
disturbed by
of doping or at the very least abnormal.
these new alA top UK athlete is among seven
legations...
Britons with suspicious blood scores.
which will,
British athletes - including Olympic
once
champion heptathlete Jessica Ennisagain,
Hill - have lost out in major events to
shake
competitors who were under suspicion.
the
Ten medals at London 2012 were won by
founathletes who have dubious test results.
daIn some nals, every athlete in the three medal
tion
positions had recorded a suspicious blood test.
Russia emerges as the blood testing epicentre
of
of the world with more than 80% of the
countrys medals won by suspicious athletes,
while Kenya had 18 medals won by suspicious
athletes.
Stars such as Britains Mo Farah and Jamaican
sprinter Usain Bolt recorded no abnormal results.
Justin Gatlin, a twoAthletes are increasingly using blood
time cheat, has estransfusions
and EPO micro-doses to boost the
tablished himself as
red
cell
count.
the top male sprinter
this year. AFP
Parisotto said: Never have I seen such

an alarmingly abnormal set of blood values.
So many athletes appear to have doped with
impunity, and it is damning that the IAAF appears to have idly sat by and let this happen.
According to Ashenden, the les show that
athletics is now in the same diabolical position as cycling during the Lance Armstrong
era. He said it was a shameful betrayal of [the
IAAFs] primary duty to police their sport and
to protect clean athletes.
The evidence is not proof of doping - but
the revelations will raise more serious questions over whether the sport is doing enough
to combat cheating ahead of the World Athletics Championships in Beijing later this month.
The IAAF is due to elect a new president in just
over two weeks, with Britains Lord Coe the
favourite to win the election against Sergey
Bubka. Coe has made independent testing a
key part of his manifesto.
The IAAF, which has not disputed the
authenticity of the database, told the Sunday Times: The IAAF has always been at
the forefront in combating anti-doping,
searching and implementing new analytical techniques and methodologies.
It said that before the introduction in 2009
of the biological passport - which monitors
longitudinal blood values - its testers had
systematically pursued all results that were
deemed atypical with immediate urine tests
for EPO and then target-tested those athletes
in and out of competition.
Since the introduction of the passport, the
IAAF says it has pursued more cases under
the passport system than all other anti-doping organisations together, and is spending
$2m a year on combating cheating. As a percentage of overall annual budget this is the
highest of any sport, it added.
There can be various reasons for abnormal
blood samples other than performance-enhancing drugs. Illness, altitude training and
pregnancy can all inuence values. -BBC
Willy Tabei plots to

conque the wold
BY KOOME KAZUNGU
Willy Tarbei took the world by storm when he won the

800 metres race during the IAAF World Youth Championships in Spain.
His victory at the Estadio Olimpico has seen the Kokwet Secondary School Form Four student billed as the
next David Lekuta Rudisha.
Tarbei has now become a role model in his village,
school and county. According to his principal, Sol Kemei, Tarbei brought the biggest achievement to the institution.
The schools board of management plans to honour
him. Every day we continue to believe in him and students are now taking athletics seriously, which is as a
result of inspiration from Tarbei, he said.
Tarbei has always believed that with perseverance,
failure can be turned into success. His humble journey
began in Chepketei Village in Kosirai division.
The second born of Ernest Kiptarbei Biwot joined
the athletics world as a marathoner at Chepketei Primary School. I always nished second or third in the
10,000 metres since I hadnt realised my potential,
he recalls.
The young Tarbei joined St Jude Kokwet for his
secondary education determined to go for the top
position in all outings. As luck would have it, he was
selected to represent his school in the 400 metres race
while in Form Two.
His performances saw him emerge the best athlete in Nandi County, a feat that would open national
entry door for him. My vision was to the best athlete
in the world so I had to embark on rigorous practice
to be make my dream come true, he says. While in
Form Three, he was
encouraged to try the
800 metres race and
it was with sheer coincidence that he met
Rudishas coach, Ian
Kiprono, during one
of the regional outings. Kipromo invited
him to the St. Patrick
Iten Camp last year
where he learnt vari- Willy Tarbei (right) competes in
ous technical aspects the 800m nals, during the National
required to compete Youth Trials at Nyayo National
in the 800 metres.
Stadium in June. CHRIS OMOLLO
SPORTS BRIEFING
Hundreds of Montreal Impact
fans welcome Didier Drogba
Ivorian striker Didier Drogba waves

before a press conference in Montreal,
Canada, last week. AFP
Didier Drogba said he is looking forward

to the beautiful challenge of nishing
his career in Major League Soccer after
being unveiled before hundreds of Montreal Impact fans.
The veteran Ivory Coast and former
Chelsea icon was addressing a crowd
of fans at Montreals Saputo Stadium, a
day after jetting into the Canadian city
after wrapping up his MLS move earlier
last week.
I am a man of challenges and there is
a beautiful one before me, Drogba said
alongside Impact President Joey Sapu-
to. Saputo said Drogba was arriving at

a great time for the Impact, the city of
Montreal, and the MLS.
Im proud that he decided to pursue his
career here, and his arrival will be benecial at all levels, both on and off the
pitch, Saputo added.
I just want to say, no pressure, a smiling Drogba added before an ovation
from supporters.
The two-time African Footballer of the
Year said he had decided to join Montreal after being impressed by Saputo.
The presidents speech persuaded me.
It was very simple, very warm, he said.
31
Serena Williams says

her best is yet to come
Top-ranked Serena Williams, coming off
her fourth consecutive Grand Slam triumph at Wimbledon, said she has plenty
of room to improve before chasing more
history at the US Open.
Speaking on a teleconference to promote her rst hardcourt tuneup event
for the Flushing Meadows fortnight, the
33-year-old American praised her mental game but added that her best is yet
to come.
Im playing some of my best mental
tennis. My actual tennis I think I could
play a lot better, Williams said. Thats
really exciting going into 2016.

Before Williams takes a serious look at
next year, she will focus on the next few
weeks at the years nal Grand Slam
event, where she could become only the
fourth woman to complete a calendaryear Grand Slam and match Stef Grafs
Open Era record of 22 womens Grand
Slam singles crowns.
Im not thinking about it much, Williams said of the history within her
reach, instead taking pride in what she
has already done -- win four Slams in a
row for the second time in her career,
the rst such run concluded by a 2003
Australian Open victory.
32
The OUTL OO K
ECONOMIC ANALYSIS & COMMENTARY with Anzetse Were
www.businessdailyafrica.com
ECONOMY At 57 per cent to GDP, lenders warn mounting debt is a threat to growth of economy
What Kenya must do to comfotably

sevice its ballooning public debt
T
he International Monetary
Fund (IMF) and World Bank
recently raised the red ag over
debt, stating Kenya must put a tight lid
on it to keep its economy on a steady
growth path.
According to the Business Daily,
Kenyas debt load crossed the 50 per
cent of gross domestic product (GDP)
mark to stand at 57 per cent by end of
December 2013.
But our problems are not the GDP
to debt ratio; they run much deeper
and are structural in nature. One of the
real problems is the way the government spends money, including debt.
It is imprudent and unsustainable.
For the past two years most government spending has gone to recurrent
expenditure. Analysis by the International Budget Partnership (IBP) indicates that in 2013/14, the government
spent 78 per cent of the budget on recurrent expenditure.
For 2014/15, government recurrent expenditure is estimated to have
eaten into 63 per cent of the budget.
This year, recurrent costs are set at
52 per cent of the budget. In short,
in the past recurrent allocations and
spending have trumped those for development.
This is a concern as it informs our
debt appetite and will determine debt
consumption. The government has
been accruing debt yet most of the
money goes to consumption, not de-
velopment. To make matters worse,

the little money left over for development spending goes unspent.
An analysis of the fourth quarter of
the 2014 State budget by the Institute
of Economic Aairs reveals that the
government has a challenge in using
the development budget; only 52 per
cent of this budget was utilised by the
end of the nancial year.
Simply, we do not seem to have
the absorptive capacity to spend the
development budget. So Kenya does
not have the spending infrastructure
to seed the economic growth required
to pay back the debts government
has taken on. This is not a spending
formula that will lead to economic
growth. Yet this is the very same eco-
nomic growth required to pay back

the accrued debt.
The seriousness of this issue comes
into further focus when one realises
that on top of all these dynamics, Kenya is an import economy and thus always falls short on raising the foreign
exchange in which international debt
is paid back.
Kenya sells shillings to raise dollars
to pay back global debt, so the government is always at a disadvantage.
In the context of the shilling tanking against the dollar, government
debt is becoming more and more
expensive. So the government has a
structural spending problem in the
context of an import economy and a
depreciating shilling. These are the
A section of the standard gauge railway.

The state should spend more on development and less on consumables. FILE
problems with Kenyas debt, not the
GDP to debt ratio. What is required
to address Kenyas debt problem is to
rst, drastically cut down on recurrent
expenditure. Secondly gure out how
to eectively spend the development
budget and, thirdly, in the long term
fundamentally reorient the economy
into an export economy.
Once these three factors are taken on board, Kenya will be a much
healthier space to service the debt the
government has been accruing.
Were is a development economist.
anzetse@gmail.com
Uganda ination
hits 5.4 pe cent
on ise in enegy,
housing expenses
Ugandas headline ination rose to 5.4
per cent year-on-year in July from 4.9
per cent the previous month, after costs
of housing and energy increased, the
statistics oce said on Friday.
Policymakers, who have been concerned about inationary pressures
after the shilling weakened sharply
against the dollar, raised the benchmark lending rate by 150 basis points
earlier in the month.
Core ination, which excludes
food, metered water and fuel prices,
also increased to 5.4 per cent from 4.9
per cent in June, the Uganda Bureau
of Statistics said.
On a monthly basis, the headline
ination increased by 0.4 per cent
from a decline of 0.9 per cent in June.
Electricity, fuel and utilities related
ination went up by 4.5 per cent from
a rise of 0.2 per cent in June.
Increase in prices was recorded
for clothing, footwear, rent charges,
cement, charcoal, rewood, petrol,
diesel and kerosene, the bureau said
when it released the statistics.
Food ination fell during the month
mainly attributed to a decline in the
prices of vegetables and fruits.
-REUTERS
US dollars: The Ugandan shilling has

weakened against the greenback. FILE
GLOBAL MARKET WATCH

DJ INDU
17,745.98
-5.41
XETRA DAX
11,248.83
-8.32
FTSE 100
3,138.61
-8.73
CURRENCY RATES
CAC 40
5,054.57
8.15
FTSE MIB
23,325.26
-70.83
SMI PR
9,399.09
1.40
Market Activity
LAST WEEK
MARKET CAP IN SH BN
TOTAL SHARES TRADED
2,077.77
2,144.97
123,872,800
EQUITY TURNOVER IN SH
3,485,285,003
2,917,832,263
BONDS TURNOVER
5,485,100,000
1,491,609,375
TOTAL DEALS (BONDS)
62
34
TOTAL DEALS (EQUITY)
7,671
6,814
4,404.72
4,500.43
NSE 20 SHARE INDEX

NSE ALL SHARE INDEX
148.39
153.18
PINEBRIDGE INDEX
785.23
800.45
FTSE NSE KENYA 15 INDEX
196.07
205.23
FTSE NSE KENYA 25 INDEX
195.54
204.71
91.68
91.80
1,140.30
1,148.31
FTSE NSE KENYA BOND INDEX

FTSE ASEA PAN AFRICAN INDEX
NIKKEI 225
20,585.24
62.41
ALL ORD.
5,681.69
28.62
SSE COMP.
3,664.01
-41.76
S&P SENSEX
28,114.56
409.21
$: 102.52
: 112.07
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TSh
USh
SAR
20.61
33.33
8.06
HE SAID
PREVIOUS WEEK
139,931,300
HANG SENG
24,636.28
138.30
Management is doing
things right; leadership
is doing the right
things.
Download the NMG PLAY app on Google
Play and scan this QR code with your
smart phone for pictures, videos and
more stories
Peter Drucker
Educator
(1909-2005)
www.businessdailyafrica.com

Aug 3rd 2015

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