Lake Turkana Wind Turbine Farm-Loiyangalani

Green Energy, Clean energy is no longer an alternative but a choice. I was pleased to recently visit Loiyangilani District in South Hor ,Turkana /Marsabit County and witness the  single largest private investment in Kenya’s history, The Lake Turkana Wind Power Project( LTWP)  a wind power harnessing project using large turbines  in  a stretch estimated to cover 162 square kilometers.

The wind farm is expected to  provide 310MW  low cost wind power to Kenya’s national grid, equivalent to approximately 18 per cent of the country’s current installed electricity generating capacity. The project will comprise 365 wind turbines, each with a capacity of 850 kW .





Most important though is the socioeconomic and environmental impact to the communities living along this arid/semi-arid region.for one, due to the project previously impassable ,rough terrain dirt roads have now been leveled and  murram added making the almost 200 km drive from Laisamis to the interior somewhat tolerable.

Communication infrastructure is slowly improving due to the contractors on site necessitating the installment of cell phone masts.It is obvious that this is changing the fortunes of the communities that were previously neglected.

What was perhaps disconcerting is that cattle rustling is still carried out between the Samburu and Turkana communities. But with this infrastructure projects coming up,economic growth and the exposure that results it is hoped that  such things will soon be history as community efforts are directed to other activities.It is also important to note, that cattle rustling or insecurity is not the main story of this region.The communities have existed and flourished in peace for many decades, unfortunately its selective media that only highlights the troubles of the region and forgets the good. Indeed if it bleeds it leads mantra has created a negative connotation for many regions and as Africans we know how unjust that can be.

With roads, infrastructure, electricity and supporting businesses  , this is the area to watch. Much of its potential is still untapped. Just driving up the road we were able to see a lot of wildlife for free...Ostriches,Giraffes,Gazelles,Antelopes, Oryx, Hyena's...etc.As the photos show Turkana is a beautiful place with beautiful people and it is projects such as the above that will expose this beauty to the outside world.

Addis Ababa Light Rail Transit-What Nairobi Needs Like Yesterday !

For the past two weeks Nairobians have been bogged down by heavy traffic  Jams especially on the main feeder road; Mombasa Road and Uhuru Highway. I have been a strong proponent on the need for an efficient and reliable public transport system that can by necessity replace the usage of personal cars within the CBD. Rather than heavily invest on Roads the priority should have been rail and trams that operate on predetermined schedules as is the case in many developed Countries that use subways and Metro's complemented by trams.

The economic, environmental and social benefits of non motorized  systems cannot be underscored. With less cars on the road there will be less pollution,less time wastage, certainty in movement of goods and people.At the same time if the Rapid transport Rail system is implemented on a national scale it will be easier for the large scale movement of unemployed labor force to arrears where seasonal economic opportunities may arise such as tea picking.When it comes to security movement of persons and can be easily monitored on the track system as compared to the Matatu and public vehicle system.I always wonder why our economists and leadership have not given enough focus on such systems instead of investing in capital intensive road systems that have heavy recurrent maintenance cost and punitive carbon foot print levels .


Well Kenya can take a cue from the Addis Ababa Electrified  Light Rail Transit (LRT)system that was initiated in 2011 and is now on trial test runs only 4 years later.

Many Kenyans would prefer such a system rather than be engrossed in traffic always for 3-4 hours.

This is certainly do able in Kenya and has been long in coming. Unfortunately projects of this magnitude are always mired with corruption , however the Government that will accomplish this will certainly score points and leave an unmatched legacy. It is therefore a priority for the Government of the day to ensure that their plans to introduce such a system achieves 100 % fulfillment at least cost to the taxpayer.


With such rapid transportation system who will bog themselves down driving in traffic? We certainly can do this and it should have been done like yesterday.Putting drums on round-a bout's Nairobi Governor Mr Kidero certainly was not a wise idea .It was like using Elastoplast to patch together a broken metallic piece. Nairobi's perennial traffic jam issues need long term solutions and strategic plans not little thought out knee-jerk reactions. If its not broken dont fix it- let it be until you can upgrade..Mr Governor and your team...visit our next door Ethiopia and learn from them.

General Electric bags two prestigious awards at coveted Africa Investor (Ai) Investment and Business Leader Awards 2014

•            GE Africa awarded Green Investment Initiative of the Year

•          GE Chairman and CEO Jeff Immelt awarded Global Investment Personality of the Year

•          The Ai Investment and Business Leader Awards reward exceptional business practices, economic achievements and investments across Africa.

 WASHINGTON, October 21, 2014/ -- General Electric Company (GE: NYSE)picked up two awards at this year’s Africa Investor (Ai) Investment and Business Leader Awards. GE Africa was awarded Green Investment Initiative of the Year for the Power Africa initiative. In addition, GE’s global Chairman and CEO, Jeff Immelt was awarded Global Investment Personality of the Year. These awards are evidence of GE’s belief in the vast investment opportunities on the continent and the company’s commitment to the sustainable development of Africa. 

While congratulating the awardees, Hubert Danso, CEO and Vice Chairman of Africa investor, said he was pleased that with the awards Africa Investor is able to showcase African investment and business success stories. “We cannot emphasize enough the importance of the role these institutions play in improving the perception of Africa as an investment destination and we commend their contribution and commitment to this effort,” said Danso

GE Africa scooped the prestigious award in the Green Investment Initiative of the Year category. Some of the criteria used by the judges were evidence of efforts to support the sustainable growth of local markets as well as consistent involvement and commitment to financial transactions in Africa. The initiative that distinguished GE in this category was its Off-Grid Energy Challenge launched in 2013 in partnership with the US Africa Development Foundation (USADF) and the US Agency for International Development (USAID). This three-year challenge is part of Power Africa, President Obama’s initiative to increase access to reliable, affordable, cleaner and more sustainable power in Sub-Saharan Africa.  Power Africa is also helping ensure responsible, transparent and effective management of energy resources in Sub-Saharan Africa.  In its first year, 6 winners were drawn from Kenya and Nigeria whilst in 2014, 22 winners were drawn from Kenya, Nigeria, Ghana, Ethiopia, Tanzania and Liberia. The winners all received $100,000 each, towards implementing or scaling up their renewable energy projects.

President and CEO for GE Africa, Jay Ireland emphasized that GE is in Africa for the long run and will continue working with various stakeholders in government and the private sector. He said, “GE is committed to continue partnering with Africa by broadening the innovation play, localizing our technological solutions and also investing in skills development. The award therefore is a clear testament that GE’s partnership based strategy for Africa is adding value to our stakeholders.”

Chairman and CEO, Jeff Immelt was also awarded Global Investment Personality of the Year during the ceremony. At the recent Africa Heads of State summit in Washington, GE announced plans to invest $2 billion in Africa by 2018 to boost infrastructure, worker skills and access to energy. Some of GE’s key projects across Africa are MOU signings with the governments of Nigeria, Ghana and Kenya to develop infrastructure projects including sustainable energy solutions, rail transportation, quality healthcare, training and capacity building.

These prestigious Ai Awards are the longest standing international investment awards that reward exceptional business practices, economic achievements and investments across Africa, and recognize the institutions and individuals improving the continent’s investment climate.

Energy sector is key to powering prosperity in sub-Saharan Africa - Report

 IEA World Energy Outlook Special Report finds that action in the energy sector could unleash an extra decade of growth

LONDON, United-Kingdom, October 13, 2014/ -- Increasing access to modern forms of energy is crucial to unlocking faster economic and social development in sub Saharan Africa, according to the International Energy Agency’s (IEA) Africa Energy Outlook a Special Report in the 2014 World Energy Outlook series. More than 620 million people in the region (two-thirds of the population) live without electricity, and nearly 730 million people rely on dangerous, inefficient forms of cooking. The use of solid biomass (mainly fuelwood and charcoal) outweighs that of all other fuels combined, and average electricity consumption per capita is not enough to power a single 50-watt light bulb continuously.

A better functioning energy sector is vital to ensuring that the citizens of sub-Saharan Africa can fulfil their aspirations,” said IEA Executive Director Maria van der Hoeven. “The energy sector is acting as a brake on development, but this can be overcome and the benefits of success are huge.”

In the IEA’s first comprehensive analysis of sub-Saharan Africa, it finds that the region’s energy resources are more than sufficient to meet the needs of its population, but that they are largely under-developed. The region accounted for almost 30% of global oil and gas discoveries made over the last five years, and it is already home to several major energy producers, including Nigeria, South Africa and Angola. It is also endowed with huge renewable energy resources, including excellent and widespread solar and hydro potential, as well as wind and geothermal.

The report finds that investment in sub-Saharan energy supply has been growing, but that two-thirds of the total since 2000 has been aimed at developing resources for export. Grid-based power generation capacity continues to fall very far short of what is needed, and half of it is located in just one country (South Africa). Insufficient and unreliable supply has resulted in large-scale ownership of costly back up generators. In the report’s central scenario, the sub-Saharan economy quadruples in size by 2040, the population nearly doubles (to over 1.75 billion) and energy demand grows by around 80%. Power generation capacity also quadruples: renewables grow strongly to account for nearly 45% of total sub-Saharan capacity, varying in scale from large hydropower dams to smaller mini- and off-grid solutions, while there is a greater use of natural gas in gas-producing countries.

Natural gas production reaches 230 billion cubic metres (bcm) in 2040, led by Nigeria (which continues to be the largest producer), and increasing output from Mozambique, Tanzania and Angola. LNG exports onto the global market triple to around 95 bcm. Oil production exceeds 6 million barrels per day (mb/d) in 2020 before falling back to 5.3 mb/d in 2040. Nigeria and Angola continue to be the largest oil producers by far, but with a host of other producers supplying smaller volumes. Sub-Saharan demand for oil products doubles to 4 mb/d in 2040, squeezing the region’s net contribution to the global oil balance. Coal supply grows by 50%, and continues to be focused on South Africa, but it is joined increasingly by Mozambique and others.

The capacity and efficiency of the sub-Saharan energy system increases, but so do the demands placed upon it, and many of the existing energy challenges are only partly overcome. In 2040, energy consumption per capita remains very low, and the widespread use of fuelwood and charcoal persists. The outlook for providing access to electricity is bittersweet: nearly one billion people gain access to electricity by 2040 but, because of rapid population growth, more than half a billion people remain without it. Sub-Saharan Africa also stands on the front line when it comes to the impacts of climate change, even though it continues to make only a small contribution to global energy-related carbon dioxide emissions.

“Economic and social development in sub-Saharan Africa hinges critically on fixing the energy sector,” said IEA Chief Economist Fatih Birol. “The payoff can be huge; with each additional dollar invested in the power sector boosting the overall economy by $15.”
In an “African Century Case”, the IEA report shows that three actions could boost the sub-Saharan economy by a further 30% in 2040, and deliver an extra decade’s worth of growth in per-capita incomes by 2040. These actions are:

•         An additional $450 billion in power sector investment, reducing power outages by half and achieving universal electricity access in urban areas.

•         Deeper regional co-operation and integration, facilitating new large-scale generation and transmission projects and enabling a further expansion in cross-border trade.

•         Better management of energy resources and revenues, adopting robust and transparent processes that allow for more effective use of oil and gas revenues.

As well as boosting economic growth, these actions bring electricity to an additional 230 million people by 2040. They result in more oil and gas projects going ahead and a higher share of the resulting government revenues being reinvested in key infrastructure. More regional electricity supply and transmission projects also advance, helping to keep down the average cost of supply. But the report warns that these actions must be accompanied by broad governance reforms if they are to put sub Saharan Africa on a more rapid path to a modern, integrated energy system for all.

DHL shares Insight on How They Made It In Africa

51 countries, 60 direct reports, 60,000 customers, 4,000 employees, 14 aircraft, 2 young children and 2 dogs! Charles Brewer is the MD who loves leading all of that

CAPE-TOWN, South-Africa, August 13, 2014/ -- DHL Express, who has been in sub-Saharan Africa for more than 36 years, is the ‘Most International Company in the World’ and has a significant operation in Africa, moving thousands of shipments every day.

At the helm of this business is Managing Director Charles Brewer, who has been with DHL for more than 30 years, has worked in all regions of the world and found himself in Africa for the first time three years ago.

 

Charles Brewer, managing director for sub-Saharan Africa at DHL Express)

“Like many who haven’t actually been to Africa, the perceptions I had were found to be very different in reality,” Brewer says. “Simplistically, Africa is the last frontier. It is the most beautiful, dynamic and exciting region I have had the pleasure to live and work in, and despite the very obvious challenges and occasional risk, I love being part of this exciting journey.”

His role, as MD, is to “motivate and excite my employees to deliver unbelievable and unparalleled service levels and to help our customers grow and be successful” and it is clear that customer centricity is at the very core of Brewer’s DNA.

So what does it take to oversee this many people and territories?

“We worry a great deal less about formal qualifications and focus far more on emotional qualities, experiences and abilities” – not surprising when you consider that he spends huge amounts of time on the front line and considers himself the Chief Energy Officer.

Every week you will find Charles in a different country in Africa – he could be with a courier in Rwanda this week, selling with a sales executive in Senegal the next, to sitting side-by-side with a Customer Service Agent in Lagos the week after. “If you want to know what your customers or employees really think about your product or your company, get to where the action is as often as you possibly can.”

A few years ago, just after Brewer arrived in Africa, he took the bold decision to completely de-layer the management structure, with an aim to bring everyone closer to the “sharp-end” and to significantly improve communication and speed of decision making.

“Africa is so dynamic and I just felt that we were too far removed and operating far too slowly”. All 51 countries now report directly to Brewer and the new structure has proven to be really successful.

“The new structure is very different and demands a very open, rapid and engaging leadership style but it is working really well, with quicker decision making, simpler communication lines and a significantly improved employee engagement level”. As an example, the couriers, who are key to the DHL service delivery promise, are never more than four levels away from Brewer and five from the Global CEO.

Think global, act local and TRUST!

One of the key lessons learned over the past three years and specifically as DHL went through the structural change, was the importance of trust. “With so many countries, all with different opportunities and challenges, you have to trust the teams on the ground”. What that means is using the global processes and procedures, but allowing a high degree of input on how best to execute locally.

To illustrate his point, Brewer describes a recent example were DHL was running a retail point of sale promotion to attract new customers to its ever-growing retail points. The typical approach would be to offer discounts and/or corporate give-aways to incentivise walk-in customers. The country manager in Ethiopia however suggested a much better idea – giving customers a chicken as part of the Easter celebration.

“When the Country Manager first suggested ‘chickens’, I had to laugh and genuinely thought she was joking, but she was serious and right – the promotion was hugely successful”.

It is big, but do-able!

DHL’s sub-Saharan regional headquarters is based in Cape Town, but Brewer spends a considerable amount of time visiting the company’s operations across the rest of the continent. “You have to be very visible”.

In a region as large as Africa, this is however easier said than done. Unlike Europe where one would struggle to fly a stretch of more than four hours, travelling across Africa can be gruelling. Just visiting each of the countries in West Africa can easily take two to three weeks.

“It has its challenges in terms of flight schedules and being away from one’s family, but it makes for an interesting experience and I’m still having lots of fun. Playing a small role in the African growth story is an incredible privilege and one that I am very proud of,” says Brewer.

As we leave his office I hear him call out to his assistant, “which lucky country am I going to next week?!”

Swala Oil and Gas (Tanzania) Plc Debut on the Dar es Salaam Stock Exchange

The first public owned Oil and Gas Company in East Africa
DAR ES SALAAM, Tanzania, August 12, 2014/ -- Swala Oil & Gas (Tanzania) Plc (“Swala” or “the Company”) today listed on the Dar es Salaam Stock Exchange (“DSE”) becoming the first public owned Oil and Gas Company in East Africa.  The company is the 20th to list on the DSE and the 2nd to list under the Enterprise Growth Market (“EGM”), an equity market specifically intended for Small and Medium Enterprises (SMEs) and start-ups.

The company listed on the EGM with 99 million shares after a very successful Initial Public Offer  which raised 6,650,000,000 Billion TZS. This IPO was oversubscribed by nearly 4 million shares and has raised nearly 2 billion TZS more than the maximum subscription of 4.8 billion TZS.

The momentous event took place at the DSE offices and was graced by His Excellency the former President of the United Republic of Tanzania, Ali Hassan Mwinyi who rang the bell at 10:30 am EAT to officiate the event, the traditional symbol signifying the opening of Swala’s first trading day.

(His Excellency the former president of the United Republic of Tanzania, Alhaji Ali Hassan Mwinyi, rings the bell officiating the first trading day of Swala Oil & Gas Tanzania Plc on the Dar es Salaam Stock Exchange (DSE). With him Swala CEO, Mr. David Mestres Ridge (L) and Swala Chairman, Mr. Ernest Massawe (R)

Former president Mwinyi asserted that Swala’s oversubscription shows a great investment appetite amongst Tanzanians in investing in their country’s economy and a growing confidence in the national Stock Exchange.

Mr. Moremi Marwa, CEO of the DSE remarked, “In October of 2013, the DSE introduced the EGM segment at the Exchange whose main objective is to enable Small and Medium Sized business access to the capital market. Swala is the second company to list on EGM within a year of its launching. Listing on DSE comes with transparency, good corporate practices and proper disclosures. Swala has made the right decision to join the family of companies aiming at being open and transparent to their shareholders, the public and the world at large”.

Chairman of Swala, Mr. Ernest Massawe further added, “Today’s listing on the EGM marks a new chapter for our company and another step forward in realizing our ambition to achieve a successful venture based on private and public partnership. We wish to extend our thanks to all those who have made this possible: the regulators, our advisors and, most importantly, our new investors. The company is now ready to commence its 2014 seismic programme and we look forward to fruitful results. I am confident that Swala, as a public company, will be able to capitalize on its achievements to date and continue to deliver for all its stakeholders”.

PwC announces investment to accelerate Africa growth opportunities

JOHANNESBURG, South-Africa, July 30, 2014/ -- PwC has today announced it is increasing its investment in Africa and building closer links between PwC UK and PwC Africa, to meet increased demand for professional services as trade activity between the two regions grows. 

The investment is part of PwC’s ongoing strategy to develop high potential markets, and follows the UK firm’s successful investment in Central and Eastern Europe.

Ian Powell, UK Chairman and Senior Partner, commented:

"This is an exciting development which enhances our ability to serve clients across the fastest growing region in the world. Africa has an abundance of natural resources and seven of the world’s fastest growing economies meaning the opportunities for UK business are significant.”

Suresh Kana, PwC Africa Network Territory Senior Partner, said:

“This is great news for our network. Over the years we have built PwC into the leading network in Africa. We now see huge opportunities to build our capabilities further as we will be able to invest even faster in key industry sectors such as Capital Projects & Infrastructure, Oil & Gas, Government & Public Sector and Financial Services. We have great teams in Africa and this investment will help us build more local capacity, and create teaming and secondment opportunities.”

As part of the investment, Paul Cleal, PwC UK partner and chair of its Africa Business Group, will be seconded to the African Leadership team and based on the continent.

PwC teams from the UK and Africa have a strong track record of working together to support businesses, governments and NGOs in nations such as Ghana, Kenya, Nigeria, Rwanda and Zambia with expertise in fields such as economic development, climate change, education, infrastructure, natural resources, and power and utilities.

The UK is renowned for the strength of its business and professional services sector and this deal is a demonstration of how the nation can play to its strengths on the global stage. This commitment not only benefits our clients and the PwC network, but is also good for the UK and African economies.

Professional and business support services is one of the most successful sectors in the UK economy, contributing 12% of total UK GDP - more than financial services (8.5%) or manufacturing (10%). The sector has grown by nearly 6% a year since Q3 2009 and has been one of the biggest job-creating sectors in the UK economy as well as a major contributor to UK exports.

A 2013 report by BIS – ‘Growth is our business: A Strategy for Professional and Business Services (PBS)’ – recognised the contribution of the professional and business services sector to the UK economy, and highlighted the opportunities in developing markets. Other business services contribute 29% of total services exports and totalled £58.6 billion in 2013, with a trade surplus of £29.3 billion.

I&M Bank Lists New Shares at the Bourse

Nairobi: June 25^th 2013: I&M Holdings has officially listed its new shares at the Nairobi Securities Exchange after a successful conclusion of the merger deal between I&M Bank with investment company, City Trust through a share swap.

The ceremony was presided over by Central Bank of Kenya Deputy Governor Dr. Haron.

Speaking at the ceremony to mark the commencement of the trading, the Company Chairman Daniel Ndonye said the merger process now opens up to the Group a myriad of opportunities as it beats a new growth path.

“The success of I&M Bank’s merger with City Trust has opened a new chapter in the growth and expansion of our business in the region which comes as good news to our shareholders. It is now much easier for the shareholders of I&M Bank to trade in their shares at the Nairobi Securities Exchange and at the same time unlock the value of shares held by City Trust investors thus boosting the liquidity of these shares,” said Mr. Ndonye.

“The listing of the Bank also makes it easier for Kenyans to invest in this home-grown institution and share in its success,” he added.

The merger which concluded early June resulted in set up of a holding company, I&M Holdings Limited, in a transaction that enabled I&M Bank’s shareholders to exchange their shares for those of City Trust in a reverse takeover.

“We are excited about this transaction which has enabled the shareholders of the Bank to list on the NSE thus providing liquidity for our institutional, corporate and individual shareholders. The listing also provides us with the platform to raise additional capital in the future to facilitate the achievement of our long term growth and expansion strategy and to improve on our capacities to successfully manage the growth we have achieved in the last few years,” said I&M Bank’s Executive Director Sarit Raja-shah

Dr. Sirima noted that the I&M Bank transaction had been a learning curve for the regulator, who is in the process of undertaking changes in law to allow for the set-up of non-operating holding companies for banks.

“The new law is still in draft form, so this transaction has given the Central Bank of Kenya a good opportunity to test the law and note what may need to be changed and/or enhanced,” said Dr. Sirima.

Originally, City Trust Limited was listed on the alternative investment market segment of the NSE. Mr. Eddy Njoroge the Chairman of Nairobi Securities Exchange noted that,” This is truly a monumental occasion as it is the first reverse takeover that has been witnessed in our capital markets, where a private company’s shareholders exchange their shares for those of a public company , making the non-listed company a publicly-traded one. It is also a unique listing as I&M Holdings has used the reverse takeover of City Trust which was listed on AIMS to migrate the new firm to MIMS. The NSE emphatically congratulates I&M Holdings for successfully listing through this avenue and urges other organizations to take up this opportunity to list on the bourse as it is a cost effective avenue for listed and non-listed entities to raise funds.”

Mr Mathur, the Chief Executive said that the bank’s main focus is now turned on customer service and product innovation to enhance on it’s competitive edge. 

“The new growth path we have taken will give our network capacity to offer quality and efficient service to our customers as well as providing more innovative technology-driven products to our clients,” said Mr. Mathur.

As the new shares begin trading, the bank is making progress in its efforts to expand into the regional markets.

Central Bank of Kenya Deputy Governor Dr. Haron Sirima rings the bill to mark the beginning of trading in I&M Holding share after a successful conclusion of the merger deal between I&M Bank with investment company, City Trust  Limited through a share swap. Looking on is I&M Holdings Limited Group Chairman Daniel Ndonye  (immediate left), NSE Chief Executive officer, Peter Mwangi (second left), NSE Chairman Eddy Njoroge (immediate right), Dyer & Blair Chairman Jimna Mbaru (second right) and I&M Bank Chief Executive Office Arun Mathur  (far right), among other Directors of the Bank.  

“Our regional expansion drive remains a key focus for us for the better part of the remainder of 2013 and 2014 with feasibility studies going on for possible acquisitions or fresh licenses in Uganda, South Sudan and Zambia. In our recent visits to Tanzania and Rwanda we have witnessed growing enthusiasm towards I&M Bank’s regional platform renewing our belief that our regional agenda will meet our objectives and drive the development of the financial system in the region,” said Mr. Mathur.  

New Directors

The listing will see the reconstitution of the Board of Directors and a new shareholding structure of I&M Holdings. The new board led by Mr Daniel Ndonye as Chairman will include Mr. SBR Shah, Mr. Michael Karanja, Mr. Sarit Raja Shah, Mr. Madabhushi Soundararajan, Ms. Christian Gabener and Mr. Guedi Ainache.

Ziyungi Limited becomes the largest shareholder with 18.74% followed by Minard Holdings Limited with 17.27% and Tecoma Limited with 16.66%. Others include Biashara Securities (13.92%), DEG (6.25%), Proparco (4.43%), Prime Securities (3.65%), Bhagwanji Raja Foundation (2.41%), I&M ESOP Trust (0.35%), and the Public (16.32%). 

For avid Kenyan investors please take note that the shares started trading on the Nairobi stock exchange at the value of Kenya Shillings 90 and are currently trading at Kshs 103 as at writing of this post.Now that's a hot cake!!!!!

Western Union Partners With M-Pesa In Enabling Local Mobile Money Receipts

It is now possible to receive funds sent from abroad through Western Union Money Transfer services via the M-pesa Platform ! This comes as particularly good news to Kenyans both in the diaspora and locally who have been seeking an efficient and seamless service when it comes to money transfer.

On 16 July 2012 the global payments service provider announced  a promotion set to run till 7 September 2012 with intent to popularize the service especially among Kenyans in America. Customers who tell at least three friends and family members through a qualifying referral about the Western Union^® Mobile Money Transfer service from the U.S. to Kenya will receive a coupon for a $0-fee* transaction. To qualify for the coupon, U.S. customers must “tell a friend” through www.westernunion.com/mpesa using e-mail, Facebook or Twitter.

The new service enables consumers to be able to send money to Mpesa subscribers from nearly 170,000Western Union Agents located in 91 Countries and Territories including the USA.According to the press release from the Company:

 The service operates on Western Union’s worldwide network and trusted global “hub” for processing cross-border remittances. It also builds on the unprecedented success of M-PESA, a mobile money transfer service in Kenya offered by Safaricom that has attracted nearly 15 million customers since its launch in 2007. Funds are delivered directly to M-PESA subscribers and are usually available in minutes.

This facility is a ready welcome and enabler for e-commerce within the region.It is expected that the service will prove very popular among Kenyans.According to a recent Central Bank of Kenya report Kenyans in the Diaspora remitted back home a whooping US $891,107,000 in 2011.This is a lot of foreign exchange and definitely indicates that both Safaricom and Western Union are targeting an already existing and lucrative market.For Kenyans the "Mobile Wallet"service will certainly ease transactions and  enhance money transfer services and usage.

DE LA RUE DESIGN WINS BANKNOTE OF THE YEAR AWARD

Commemorative Kazakhstan 10,000 Tenge note wins the prestigious International Bank Note Society annual award

London: June 19, 2012: Commemorative Kazakhstan 10,000 Tenge note designed by the world’s largest integrated commercial banknote printer, De La Rue and the National Bank of Kazakhstan, has won the 2011 International Bank Note Society Banknote of the year award.

Issued in July 2011 to celebrate 20 years of independence, this high denomination banknote from the National Bank of Kazakhstan was designed by the Bank, working in close collaboration with De La Rue’s world class design team. The note was printed in the National Bank’s state-of-the-art banknote factory in Almaty, a main business centre in Kazakhstan located in the south of the country. 

The note depicts the Kazakh Eli monument, the National Emblem and the National Flag on the front, along with images of doves flying. The Residence of the President of the Republic of Kazakhstan, the emblem of 20 years of independence and commemorative text can be seen on the reverse. The design is complemented by a wide range of world class security features including an Optiks™ security thread along with StripeChrome™ and SPARK™ security ink.  The banknote contrasts many other currencies in having a portrait orientation for one side of the note and a more traditional landscape on the other.

This is not the first time that the distinctive banknote designs of the National Bank have received recognition. In 2007 its 10,000 Tenge circulating banknote won the International Association of Currency Affairs award for the Best New Banknote.  Chief Designer Mendybai Alin is known worldwide for his individual design style and exciting creative vision.  Commenting on the award, Mr Alin said “I am delighted once again to see a Kazakhstan note win approval from the international banknote community”.

Working closely with Mr Alin was the design team at De La Rue.  Designer Steve Pond who collaborated with Mr Alin commented: “Working so closely with a national designer gives me a much greater insight into the culture and essence of a country than I could achieve through working alone. I am sure our close collaboration was an important factor in enabling us to win this award.”

“This is the ninth design award that De La Rue has won in the past five years, a record of which the company is justifiably proud.”

CfC Stanbic Holdings shareholders approve rights issue

Nairobi: December 19^th 2011: Shareholders of CfC Stanbic Holdings Limited have approved a  Rights Issue at an Extraordinary General Meeting held in Nairobi on 19^th December 2011.  

Shareholders also voted to raise the firm’s authorized share capital from KES 1,368,421,055.00 to KES 2,368,421,055.00.  The authorized share capital of KES. 2,368,421,055.00 is divided into four hundred and seventy three million six hundred and eighty four thousand two hundred and eleven (473,684,211) ordinary shares of Kenya shillings five (KES 5.00) each, by the creation of two hundred  million (200,000,000) new ordinary shares of Kenya Shillings five (KES 5.00) each.

Effectively, the move paves way for the Board to make formal applications to the Capital Markets Authority and the Nairobi Securities Exchange for the Rights Issue which is targeted for the second quarter of 2012.

Confirming shareholders nod to the transaction CfC Stanbic Holdings Chairman Mr. Fred Ojiambo said: “We are very pleased that our shareholders have approved the Rights Issue which can now proceed in accordance with the Capital Markets Authority and the Nairobi Securities Exchange regulations. We regard this resolution as a demonstration of confidence by our shareholders in the strategic course that we set for the Group.”

The Managing Director of CfC Stanbic Holdings, Mr. Kitili Mbathi said the Rights Issue would strengthen the Group’s capital position, and support the continued growth of the business in the future.

“In the past few years we have laid a strong foundation for the Group’s future and as the impressive results as at 30^th September demonstrate, we have been successful in implementing our strategy.  We believe that there are great opportunities for growth and it is critical that we have sufficient capital to take advantage of these opportunities” Mr. Mbathi added.

At the Extraordinary General Meeting, shareholders also approved the amendment of the Articles of Association to reflect the new capital structure.

Kenya Budget Speech 2010 / 2011

The Kenyan Minister of Finance Honourable Uhuru Kenyatta today has read the Kenya Budget 2010 - 2011 announcing various cross cutting and investment inducing measures including:

• Stamp Duty on Debenture ,Mortgages and Charges reduced to from 2% to 1% to stimulate the Real Estate and property market .
• Land Rent late payment penalty reduced from 2% to 1% with waiver period on current outstanding interest up to 30 June 2010
• New VAT Act by 2011
•  Increase excise tax for malt beer.
•  Import Duty on Poultry to be scrapped
• Pension Benefits to be paid within shorter period i.e 60 days to 30 days
• Amnesty on taxation for remittances brought in by Kenyans in the Diaspora.
• Sh5.7bn to maintain roads, improve market access, research and other interventions. 
• Defense Budget increased by Kshs 2 Billion 

You can now download the speech in [PDF]  format from the Ministry of Finance Website to the following link BUDGET 2010/11 DOWNLOAD

More updates to follow

Equity Bank SME China Development Bank Deal

Kenya's leading Bank Equity and China Development Bank have announced a Kenya shillings 4 Billion credit facility for Small and medium enterprise businesses.The credit/loan facility will attract low interest rates of between 7% to 9 % for periods of up to 9%. The announcement heralds good times for many small business entrepreneurs who often face punitive interest rates and harsh terms when trying to secure Business loans.

Since its early start as a micro finance institution Equity Bank Kenya Limited has blazzed trail as the Bank for the common Mwananchi(Citizen).  In fact my first Bank account after finishing campus was with Equity Bank as they were the only Bank that did not require Bank Statements, Utility Bills in prospective account Holders Name and letters of introduction from two current customers in the respective Bank Branch. I found such requirements quite absurd and against the spirit behind Banking and what led to the formation of Banks in the first place.Its for such reasons that Equity Bank has continued to steadily increase its customer base.Quite recently the Bank won the African Banker Awards Micro-finance Bank of The Year.

Equity Bank also has innovative products such as the recent launch of the branch-less Mobile Banking /phone based account M-Kesho in partnership with Safaricom's M-Pesa.The  M-Kesho product will be a favourite to many middle and low income earners who have proved to be the driving force behind Equity's growth. KCB's Bankika account seems to be afterthought with intent to rival Equity's dominance of the low income earners segment of the market.Thanks to Equity's competitive products Banking has become accessible to people who previously would only have dreamt of owning a Bank Account.

Furthermore the Bank continues to register increased profit margins on 23rd April 2010 … Equity Bank Group announced a 43 per cent per cent increase in profits before tax for its first quarter in the current financial year, posting a Kshs 1.7 billion profit compared to Kshs 1.2 Billion for the same period last year.That is the kind of news any investor would be happy to hear.
 
Furthermore Equity Bank seems now to on a drive to fund,enhance and support small business.I believe on behalf of many Kenyans and many "Nairobians" we certainly are thankful to Equity Bank for the benefits reaped so far.

Nakumatt Chain Store Buys Woolmatt Supermarket

The recent purchase of Woolmatt supermarkets in downtown Nairobi by Kenya's homegrown retail Chain store giant Nakumatt  Holdings indicates that finally Nakumatt Chain store supermarket  has changed its marketing and sales strategy.

The Supermarkets seems to be now targeting the middle and low income earners after realizing that this segment  of the consumer market is the driving force behind the exponential  growth of Supermarkets such as Ukwala, Tusky's Naivas etc.

Nakumatt purchased three of Woolmatt's stores in circumstances reminiscent of a hostile takeover in a business sense. The buy out has been placed at approximately 400 million Kenya Shillings($5.21 million).In keeping up to its reputation ,the supermarket sold off Woolmatt's stocks at items at a 25 % discount price indicating that the supermarket is intent in keeping its mantra of providing the best services,the widest variety and quality goods.The stores on Nairobi's  Moi Avenue,Haile Selassie and Mama Ngina Street have been jam packed by frugal Kenyans aiming at maximizing returns on the discounted prices.The three stores will be refurbished to the chains store's standard before the grand opening slotted for latter this year presumably in May 2010.

I believe the purchase of the chain store by Nakumatt bids good tidings of good things ahead for the middle and low income earners in Kenya who are the vast majority of the populace. Kudos Nakumatt!

Kenya Budget Speech 2009/10 Update

After much anticipation the Country can now analyse the Budget speech for financial year 2009/2010 read by the Minister for Finance Hon. Uhuru Kenyatta! Among the salient features of his speech include:

• The gainers are ICT ,Education Health ministry's
  
• Increase of CDF kitty to 12 billion up from 10 billion
  
• a financial development stimulus to channeled through cdf mechanisms
• Entertainment industry to benefit as Tv Camera's Digital Camera,s ,Camcorders etc to be Zero Rated. Film production services
  
• Zero rate locally produced cotton goods
• Excise duty on alcohol changed to ad valorem
  
• Over 1.3 billion allocated to rail development
• 4 billion allocated to rural roads development
• 1 billion each to free primary and secondary
• zero rate VAT on Power Generators
• Import Duty on imported wheat raised
  
• Zero rate Import Duty on refrigerated trucks
  
• Import Duty on Second Hand Clothes "Mitumba" reduced.
• Duty on bottled water 10% to 5% on carbonated Juices from10% to 7%
• Excise duty on alcohol to reduce
• Monthly pension of 25,000 and below exempt from Tax
• Pyramid Schemes outlawed
  

(this is a preliminary analysis more in depth information as it streams in)

Kenya Budget Day 2009 Eve !

Today will be the eve to the 2009 Budget Day Speech to be read by Kenya's grand coalition finance minister Honourable Uhuru Kenyatta on Thursday June 11, 2009 and most Kenyans have jittery feet And for good reasons among them:

• First, the Minister is challenged by the World Global Recession,
  
• Two, he has to Budget for over 40 ministries the largest Kenya has ever hard,
  
• Three ,He has had two major blunders with regards to the Supplementary Budget estimates which he attributed to "computer error "and or "typo's" hence public confidence has waned in that regard.
• Uhuru Kenyatta's educational background as a political science student at Amherst College , Massachusetts, in the USA does not adequately fit him for the role of Finance Minister. But the President against all expectations did appoint him as a Finance minister perhaps under the backdrop of Political Succession.
• Kenyans are already over taxed and most economic analysts are speculating that the Government will heavily borrow from the domestic market in order to meet the budget deficit!This may just create a credit crunch and over crowding for Bank loss ending in low business and or economic growth.

Well, what does the son of the first President Mr Jomo Kenyatta have up his sleeve in light of the above circumstances?...I guess we will find out tommorow, stay tuned!

New Multi-Billion Convention Centre At Jomo Kenyatta International Airport

A Qatari based Afro Asia Investment Corporation is set to make the biggest direct foreign investment venture in Kenya to date by building a modern state of the Art Trade Expo Centre worth Kshs 26 Billion at Jomo Kenyatta International Airport(JKIA). The International Convention Centre will feature a five star hotel, hospital,a trade expo/exhibition centre, shops amongst other amenities will be a grand mall unrivaled within the region and will attract foreign exchange, employment opportunities an other untold benefits.

The Government will grant the investor a 80 year concession thereafter the centre will be handed back to the Government.The complex will be built on a 90-acre piece of land that has been Leased to the investor for the 80 year period.The deal to construct the centre was executed yesterday by Kenya Airport Authority Managing Director Mr George Muhoho and the Doha based developer Mr.Mohamed Kilani yesterday.With the current Governments heavy investment in the Infrastructure(roads, fibre optics etc), Kenya's economy is bound to grow steadily despite the low economic growth expected for the last financial year.The new project is expected to be complete in the next two years(maybe 5 the way things work here).Eventually Kenya will reclaim its status as one of Africa's strategic investment hub!This is certainly good news to many Kenyans especially the business community.The only impdiment to this is the rampant corruption by the political elite- a culture that must be effaced for any meaningful growth in this Country.