Documente Academic
Documente Profesional
Documente Cultură
THE
Kenyas Bold Newspaper
Tuesday, May 20, 2014
No. 29592
www.standardmedia.co.ke
KSh60/00 TSh1,500/00 USh2,700/00
Blame game renewed; Battlelines redrawn
Online applications open for university admissions, P.8
12 police ofcers killed in Mandera, P.32
ANGLO LEASING
SEE STORIES ON PAGES 2, 3, 4, 6 & 7
Leading LSK to press for
removal of the AG and
prosecution by EACC for
allegedly outing the
Constitution by putting up
weak defence.
Accuses AG of not defending
country on grounds that
there was bribery.
He is putting up his biggest
ght to defend his position
after Uhuru warned he
must up our game. LSK
accuses him of bungling
Kenyas legal defence and
wants him prosecuted,
while CORD has also put
him on the spot.
The battle by Kenyan
lawyers to stop Treasury
from paying the two
companies has moved to
the Court of Appeal. LSK
argues a judgement that
forces the people of Kenya
to pay for corrupt deals is
contrary to public policy.
On the radar of inquiries
into how Kenyas defence
was sabotaged during
his tenure as Chief Legal
Advisor to President. He
complicated his situation
by declaring the contracts
legally binding.
He is the lead articulator of
Government policies and
programmes in National
Assembly and, having
whipped Jubilee MPs to
defend the decision to
pay Anglo Leasings Sh1.4
billion, his next duty to
President is to keep CORD in
check in House.
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Damned if he pays, damned
if he doesnt. Agony of
defending Sh1.4 billion
payments for contracts
he described as a scam in
2006 as Leader of Ofcial
Opposition. Sh174 billion
Sovereign Bond at stake if
Anglo Leasing ghosts are
not paid off.
TNA accuses him of signing
the deal involving First
Mercantile and Universal
Satspace in July 2002 when
he served as Transport
minister. But UDF leader
tells TNA off for ogging
a dead horse and peddling
bogus rumours.
His CORD team has
opposed the payments,
claiming ofcials have cut
deals.
CORD threatens to lead
mass action to block the
payments and condemn
general corruption
and tribalism in public
appointments.
President Uhuru Kenyatta
Amos Wako
Aden Duale
Githu Muigai
Musalia Mudavadi
Willy Mutunga
Raila Odinga
Eric Mutua
By PAMELA CHEPKEMEI
The battle by Kenyan lawyers to
stop Treasury from paying two com-
panies involved in the Anglo Leasing
scandal has found its way to the Court
of Appeal.
The move comes days after Presi-
dent Uhuru Kenyatta directed Trea-
sury to pay the cash. The Law Society
of Kenya (LSK) wants the court to stop
Treasury from making any payments
because doing so would interfere with
the enjoyment of economic and social
freedom and rights of Kenyans.
LSK has faulted a judgement en-
tered against the Government of Ke-
nya by a London court last year.
A judgement that forces the peo-
ple of Kenya to pay for corrupt deals
is contrary to public policy, said LSK
lawyer James Mwamu.
LSK lodged an appeal against a
decision by the High Court declining
to temporarily halt payments until
their case is heard and determined.
LSK is contesting a decision by
Justice David Majanja declining to
stop Treasury from initiating a process
that will result in payment of Sh1.4
billion to First Mercantile Securities
Corporation and Universal
Satspace.
The society is opposed to the Gov-
ernment making any payments be-
cause the contracts were based on
questionable deals and were tainted
with corruption.
LSK says it has led the case in
pursuit of public interest to protect
the taxpayer from meeting expenses
for corrupt deals.
LSK argues that the proceedings in
the London Court were conducted in
a manner that suggests there was no
natural justice and the Kenyan Gov-
ernment was not given a chance to
argue its case.
The society rst moved to court on
May 5 seeking interim orders against
Finance Cabinet Secretary Henry Rot-
ich and the Attorney General. Justice
Majanja declined to issue conserva-
tory orders stopping the payments,
saying the payments were not likely to
be made soon.
Following the decision, LSK made
a second urgent application last
Thursday, seeking orders to halt any
payments. It also sought to be al-
lowed by the High Court to move to
the Court of Appeal.
LSK wants to appeal against a de-
cision by judge Majanja declining to
issue temporary orders stopping the
payments.
By WAHOME THUKU
The Law Society of Kenya (LSK)
has now taken its ght with Attorney
General Githu Muigai to Parliament
over the multi-billion shilling Anglo
Leasing scandal.
The lawyers body has petitioned
the National Assembly to start the
process of removing the AG from of-
ce over alleged violation of his con-
stitutional mandate in regard to the
handling of cases against the Kenyan
Government in the United Kingdom.
In the petition signed by the chair-
man Eric Mutua (pictured) and secre-
tary Apollo Mboya, the LSK asked the
National Assembly to advise President
Uhuru Kenyatta to initiate the process
of removing the Prof Muigai.
The AG is on the spot over the han-
dling of a case between the Govern-
ment and the Universal Satspace
(North America) LLC led in London
and another with First Mercantile
Securities Corporation in Switzer-
land.
The process of removing an AG
may, however, raise a legal debate due
to a gap in the law. Article 132 (2) pro-
vides that the President may dismiss
the AG in accordance with Article 156.
However, Article 156 does not men-
tion anything about the removal of
the AG. It establishes the ofce, spells
out the qualications and the man-
Lawyers body wants
National Assembly to
advise the President
to re the AG over
handling of cases
LSK petitions Parliament to remove
Page 2 / NATIONAL NEWS Tuesday, May 20, 2014 / The Standard
LAWYERS CALL FOR
PUNISHMENT OF MUIGAI
The Law Society of Kenya
wants the National Assembly
to institute proceeding towards
the removal of Attorney General
Githu Muigai from ofce
The process of removing an AG
may, however, raise a legal de-
bate due to a gap in the law be-
cause articles 132 (2)and 156 are
not in harmony
Lawyers move to court of Appeal after
judge throws petition on payments out
plication partly read.
The lawyers body pointed out that
the AG failed to instruct a competent
advocate with expertise in complex
commercial litigation matters to rep-
resent Kenya in the London court.
LSK also criticised the AG for in-
structing the Solicitor General Njee
Muturi to represent Kenya in the case,
knowing that he did not have a license
to practice law in England and
Wales.
Effectively the Government did
not have legal representation and the
proceedings in the court are a nullity,
the application read in part.
The LSK claims prof Muigai failed
to advance the defence of corruption
and bribery in the case, saying he in-
stead recorded consent to take the
matter for mediation and subse-
quently entered into a consent to pay
$7.6 million (about Sh666.9 million as
per current exchange rates).
This was despite the fact that re-
ports by the Ethics and Anti-Corrup-
tion Commission, the Public Accounts
Committee, PricewaterhouseCoopers
and the Auditor General indicated the
contracts were procured through cor-
ruption.
UNPROFESSIONAL OPINION
The AG failed to appeal against the
court decision of December 20 last
year even with an avenue to do so, the
society argued in the petition sent to
the Clerk of the National Assembly.
LSK claims the AG gave the Gov-
ernment unconstitutional, illegal,
fraudulent and unprofessional legal
opinion that the government had no
other option than to pay the company.
The LSK said though President Uhuru
Kenyatta had reprimanded the Ofce
of the AG over the manner in which
the cases were handled, no disciplin-
ary action was taken.
SIGNATORIES FOR SECURITY (ANGLO LEASING ) CONTRACTS - OCTOBER 2013
CONTRACT NAME DATE SIGNED PROJECT VALUE CONTRACTOR/FINANCIER GOVERNMENT
Forex Ksh Line Ministry Treasury
CANCELLED CONTRACTS KAMANI FAMILY
1 Forensic Sciences Laboratory for CID 16 Aug. 2001 $54.6 4,095 L-Mrs Ludmilla Katuschenko Z. K. A. Cheruiyot PSI M. Mwacho
Export Supplier Internal Security PS/Treasury
2 Security Vehicles for Kenya Police 16 Aug 2001 $90.0 6,750 David Dunkley for Lessor and Z. K. A. Cheruiyot PS M. Mwacho
(Silverson Established) InderSingh Brar for Export / Internal Security PS/Treasury
Supplier
3 Kenya Police. Law & Order (E-Cops) 19 Nov 2003 58,7 5,224 Bradley Birkenfeld, Director, Dave Mwangi Joseph Magari
/lnfotalent Infotalent Ltd PSI Internal Security PS/Treasury .
4 Immigration Security & Document 4 Dec 2003 31.9 2,839 Colin Flynn on behalf of Anglo Slyvester Mwaliko Joseph Magari
Control System (ISDC) Leasing & Finance Ltd -PS/ Vice-President's PS/Treasury
& Ministry of Home Affairs . Ofce
Sub-total 18,908
FULLY PAID CONTRACTS KAMANI FAMILY
5 Kenya Prisons Security & 30 Oct 1997 $24.6 1,845 Andrew Macgill on behalf Mosses Abudo; Simeon Lesrima
Telecommunication - Project Phase I of LBA Systems Ltd PSI Home Affairs and PS /Treasury 6
National Heritage
6 Kenya Police Airwing Support 8 June 1998. $36.0 2,700 Brian Mills for Sound Day Z. K: A. Cheruiyot M. Chemengich
Project I Corp. and J. Manshing for PS/Internal Security PS /Treasury
Apex Finance Corporation
7 Kenya Police: Supply of 9 April 2002 $30.0 2,250 Brian Mills for Sound Day Z. K. A. Cheruiyot S. K. Bundotich
Security Equipment Addendum 2 Corporation PS/ Internal Security Financial Secretary
Sub-total 6,795
PARTLY COMPLETED CONTRACTS
KAMANI FAMILY
8 Kenya Police: Supply of Security. 14 June 2002 31.8 2,385 Brian Mills on behalf of Sound Z. K. A. Cheruiyot S. K. Bundotich
Equipment Addendum 3 Day Corporation PS Internal Security Financial Secretary
9 Kenya Police Aiming Support 12 July 2002 $12.8 960 J. Manshing for Apex. Z. K. A. Cheruiyot S. K. Bundotich
Project Finance Corporation PS Internal Security Financial Secretary
10 National Early Warning
Security System (NEWSS) for 12 July 2002 $35.0 2,625 Andy Macgill on behalf of LBA Sammy Kyungu S. K. Bundotich
Meteorological Department PS, Transport Financial Secretary
and Communications
11 Kenya Prisons Security 19 Nov 2002 29.7 2,643 Andrew Macgill on behalf Ali. Koran & PSI S. K. Bundotich
and telecommunication of. LBA Home Affairs and Financial Secretary
Project Phase 2 . National Heritage
12 Multi-Channel Security 29 May 2003 49.7 4,423 Dave Doyle for Globotel Dave Mwangi- Joseph Magari
Telecommunication System and David Dunkley- for PS Internal Security PS/Treasury
for Administration Police Midland Finance Ltd.
13 Modernization of Police Equipment 17 Dec 2003 40.0 3,569 Brian Mills on behalf of Dave Mwangi Joseph Magari
and Accessories both Sound Day and PSI Internal Security PS/Treasury
Apex Corporation
Sub-total 16,605
ANURA PERERA
14 Broadband Network PCK. VSAT 11 Jul 2002 $11.8 885 Michael Allan on behalf of Sammy Kyungu S K. Bundotich
Equipment / Fir-StMercantile Spacenet Inc, the supplier PSI Transport and Financial Secretary
Securities Corporation (FMSC) and A Gusman for First Communication
Mercantile Securities Corp
15 Bandwidth Spectrum and 11 July, 2002 $28.1 2,108 AvramZivTal, on behalf Sammy Kyungu S. K. Bundotich
Network Operation/ of UniVerSal Satspace PS/Transport and Financial Secretary
Universal Satspace (USS) Communication
16 Project Nexus (Defence 19 Nov, 2002 36.9 3,284 Anurath Gunarwadena on Sammy Kyungu S. K. Bundotich
Command Centre behalf of Nedermar Technology PS, Transport and Financial Secretary
witnessed by Micheal Allan Communication
17 Naval Ship (Oceanographic 15 July, 2003 51.9 4,619 J. K Marrio for Euromarrine; Sammy Kyungu
Survey Vessel) Christopher Kompasa PS/ Defence Joseph Magari
for Navigia Capital; Hairis PS/Treasury
for Empressa Financas
18 Project Fragstaff (National
Counter Terrorism Control Centre) 20 Jan, 2004 $40.7 2,053 Harry Smith Flenkirsen on Brig(Rtd) Wilson Boinett Joseph Magari
behalf of Clara Systems Ltd Director-General, NSIS PS/Treasury
Sub-total 13,949
Grand Total. 56,257
dates of the ofce holder.
The President may, however, un-
der the law remove the AG only for
serious violation of the Constitution,
gross misconduct, incompetence,
mental or physical incapacity or
bankruptcy.
In their petition, the LSK claims
Prof Muigai failed to respond to ve
letters by the foreign advocate in Eng-
land, who had been hired by the State
to defend the suit.
He failed to give instructions to
the said Kenyan foreign advocate to
le a reply to the application by the
claimant, which sought to strike out
the defence and counterclaim by the
Kenyan Government. The application
for striking out was therefore not con-
tested in terms of the facts, the ap-
THE RETURN OF ANGLO LEASING
Captains see the ship through the crews eyes
SIGNATORIES FOR SECURITY (ANGLO LEASING ) CONTRACTS - OCTOBER 2013
CONTRACT NAME DATE SIGNED PROJECT VALUE CONTRACTOR/FINANCIER GOVERNMENT
Forex Ksh Line Ministry Treasury
CANCELLED CONTRACTS KAMANI FAMILY
1 Forensic Sciences Laboratory for CID 16 Aug. 2001 $54.6 4,095 L-Mrs Ludmilla Katuschenko Z. K. A. Cheruiyot PSI M. Mwacho
Export Supplier Internal Security PS/Treasury
2 Security Vehicles for Kenya Police 16 Aug 2001 $90.0 6,750 David Dunkley for Lessor and Z. K. A. Cheruiyot PS M. Mwacho
(Silverson Established) InderSingh Brar for Export / Internal Security PS/Treasury
Supplier
3 Kenya Police. Law & Order (E-Cops) 19 Nov 2003 58,7 5,224 Bradley Birkenfeld, Director, Dave Mwangi Joseph Magari
/lnfotalent Infotalent Ltd PSI Internal Security PS/Treasury .
4 Immigration Security & Document 4 Dec 2003 31.9 2,839 Colin Flynn on behalf of Anglo Slyvester Mwaliko Joseph Magari
Control System (ISDC) Leasing & Finance Ltd -PS/ Vice-President's PS/Treasury
& Ministry of Home Affairs . Ofce
Sub-total 18,908
FULLY PAID CONTRACTS KAMANI FAMILY
5 Kenya Prisons Security & 30 Oct 1997 $24.6 1,845 Andrew Macgill on behalf Mosses Abudo; Simeon Lesrima
Telecommunication - Project Phase I of LBA Systems Ltd PSI Home Affairs and PS /Treasury 6
National Heritage
6 Kenya Police Airwing Support 8 June 1998. $36.0 2,700 Brian Mills for Sound Day Z. K: A. Cheruiyot M. Chemengich
Project I Corp. and J. Manshing for PS/Internal Security PS /Treasury
Apex Finance Corporation
7 Kenya Police: Supply of 9 April 2002 $30.0 2,250 Brian Mills for Sound Day Z. K. A. Cheruiyot S. K. Bundotich
Security Equipment Addendum 2 Corporation PS/ Internal Security Financial Secretary
Sub-total 6,795
PARTLY COMPLETED CONTRACTS
KAMANI FAMILY
8 Kenya Police: Supply of Security. 14 June 2002 31.8 2,385 Brian Mills on behalf of Sound Z. K. A. Cheruiyot S. K. Bundotich
Equipment Addendum 3 Day Corporation PS Internal Security Financial Secretary
9 Kenya Police Aiming Support 12 July 2002 $12.8 960 J. Manshing for Apex. Z. K. A. Cheruiyot S. K. Bundotich
Project Finance Corporation PS Internal Security Financial Secretary
10 National Early Warning
Security System (NEWSS) for 12 July 2002 $35.0 2,625 Andy Macgill on behalf of LBA Sammy Kyungu S. K. Bundotich
Meteorological Department PS, Transport Financial Secretary
and Communications
11 Kenya Prisons Security 19 Nov 2002 29.7 2,643 Andrew Macgill on behalf Ali. Koran & PSI S. K. Bundotich
and telecommunication of. LBA Home Affairs and Financial Secretary
Project Phase 2 . National Heritage
12 Multi-Channel Security 29 May 2003 49.7 4,423 Dave Doyle for Globotel Dave Mwangi- Joseph Magari
Telecommunication System and David Dunkley- for PS Internal Security PS/Treasury
for Administration Police Midland Finance Ltd.
13 Modernization of Police Equipment 17 Dec 2003 40.0 3,569 Brian Mills on behalf of Dave Mwangi Joseph Magari
and Accessories both Sound Day and PSI Internal Security PS/Treasury
Apex Corporation
Sub-total 16,605
ANURA PERERA
14 Broadband Network PCK. VSAT 11 Jul 2002 $11.8 885 Michael Allan on behalf of Sammy Kyungu S K. Bundotich
Equipment / Fir-StMercantile Spacenet Inc, the supplier PSI Transport and Financial Secretary
Securities Corporation (FMSC) and A Gusman for First Communication
Mercantile Securities Corp
15 Bandwidth Spectrum and 11 July, 2002 $28.1 2,108 AvramZivTal, on behalf Sammy Kyungu S. K. Bundotich
Network Operation/ of UniVerSal Satspace PS/Transport and Financial Secretary
Universal Satspace (USS) Communication
16 Project Nexus (Defence 19 Nov, 2002 36.9 3,284 Anurath Gunarwadena on Sammy Kyungu S. K. Bundotich
Command Centre behalf of Nedermar Technology PS, Transport and Financial Secretary
witnessed by Micheal Allan Communication
17 Naval Ship (Oceanographic 15 July, 2003 51.9 4,619 J. K Marrio for Euromarrine; Sammy Kyungu
Survey Vessel) Christopher Kompasa PS/ Defence Joseph Magari
for Navigia Capital; Hairis PS/Treasury
for Empressa Financas
18 Project Fragstaff (National
Counter Terrorism Control Centre) 20 Jan, 2004 $40.7 2,053 Harry Smith Flenkirsen on Brig(Rtd) Wilson Boinett Joseph Magari
behalf of Clara Systems Ltd Director-General, NSIS PS/Treasury
Sub-total 13,949
Grand Total. 56,257
FAIR SETTLEMENT VALUES AND RESOLUTION STRATEGIES FOR SECURITY
CONTRACTS - OCTOBER 2013
CONTRACT NAME Date Signed Project Value Fair RESOLUTION
Settlement STRATEGY
Price
Forex Ksh m Kshm
I CANCELLED CONTRACTS KAMANI FAMILY
1 Forensic Sciences 16 Aug 2001 $54.6 4,095 - Funds returned and
Laboratory for CID contract cancelled
2 Security Vehicles for 16 Aug 2001 $90.0 6,750 - Funds returned and
Kenya Police contract cancelled
(Silverson Establishment)
3 Kenya Police Law 19 Nov 2003 58.7 5,229 Funds returned and
& Order (E-Cops) contract cancelled
/Infotalent
4 Immigration Security 4 Dec 2003 31.9 2,839 - Funds returned and
& Document Control contract cancelled
System (ISDC)
18,908
II FULLY PAID CONTRACTS
5 Kenya Prisons Security 30 Oct 1997 $24.6 1,845 (3,375) Recovery not
& Telecommunication feasible. Close le
Project Phase I
6 Kenya Police Airwing 8 June 1998 $36.0 2,700 (3,472) Recovery not
Support Project 1 feasible. Close le
7 Kenya Police: Supply 9 April 2002 $30.0 2,250 (1,388) Recovery not
of Security Equipment feasible. Close le
Addendum 2
Sub total 6,795 (8,235)
Ill PARTLY COMPLETED CONTRACTS
Kamani Family
8. Kenya Police: Supply 14 June 2002 $31.8 2,385 (1057) Cancel contract and
of Security Equipment recover funds
Addendum 3
9. Kenya Police Airwing 12 July 2002 $12.8 960 (126) Cancel contract and
Support Project 2 recover funds
10 National Early 12 July 2002 $35.0 2,625 (1050) Cancel contract and
Warning Security recover funds
System (NEWSS) for
Meteorological Deptment
11 Kenya Prisons Security 19 Nov 2002 29.7 2,643 (522) Cancel contract and
and telecommunication recover funds
Project Phase 2
12Multi-channel Security 29 May 2003 49.7 4,423 (1,071) Cancel contract and
Telecommunication recover funds
System for
Administration Police
13 Modernization of Police 17 Dec 2003 $40.1 3,569 (1.84) Cancel contract and
Equipment and recover funds
Accessories
Sub total 16,605 (4,010)
Anura Perera
14 Broadband Network 11 July, 2002 $11.8 885 421 Judgment 10.1m
PCK VSAT Equipment/ (Ksh 868m)
First Mercantile Negotiation
Securities Corporation recommended
(FMSC)
15 Bandwidth Spectrum 11 July, 2002 $28.11 2,108 (1,272) Mediation 7.6m
and Network Operation (Ksh 653m)
/Universal Satspace Negotiation to
(USS) proceed
16 Project Nexus (Defence 19 Nov, 2002 36.9 3,284 2,310 Successfully
Command Centre) negotiated
paid 14m (Ksh1.54 bn)
17 Naval Ship 15 July, 2003 51.9 4,619 4,180 Successfully
(Oceanographic Survey negotiated 34m
Vessel) (Ksh 3.74bn ) paid
18 Project Flagstaff 20 Jan, 2004 40.7 3,053 N/A Not Valued.
(National Counter Negotiation
Terrorism Control Centre in progress
Sub total 13,949 - -
GRAND TOTAL 56,257
NOTE: 1) The fair settlement value is based on fair value of deliveries less the GoK pay-
ments adjusted by interest due to either party. The amounts were computed in 2007
but were updated during negotiations of contracts Nos 14-17
2) Exchange rate $1= Ksh 75 1 =Ksh 89. The exchange in the early reports is applied
so that the shilling value of contracts does not keep changing
SIGNATORIES FOR SECURITY (ANGLO LEASING ) CONTRACTS - OCTOBER 2013
CONTRACT NAME DATE SIGNED PROJECT VALUE CONTRACTOR/FINANCIER GOVERNMENT
Forex Ksh Line Ministry Treasury
CANCELLED CONTRACTS KAMANI FAMILY
1 Forensic Sciences Laboratory for CID 16 Aug. 2001 $54.6 4,095 L-Mrs Ludmilla Katuschenko Z. K. A. Cheruiyot PSI M. Mwacho
Export Supplier Internal Security PS/Treasury
2 Security Vehicles for Kenya Police 16 Aug 2001 $90.0 6,750 David Dunkley for Lessor and Z. K. A. Cheruiyot PS M. Mwacho
(Silverson Established) InderSingh Brar for Export / Internal Security PS/Treasury
Supplier
3 Kenya Police. Law & Order (E-Cops) 19 Nov 2003 58,7 5,224 Bradley Birkenfeld, Director, Dave Mwangi Joseph Magari
/lnfotalent Infotalent Ltd PSI Internal Security PS/Treasury .
4 Immigration Security & Document 4 Dec 2003 31.9 2,839 Colin Flynn on behalf of Anglo Slyvester Mwaliko Joseph Magari
Control System (ISDC) Leasing & Finance Ltd -PS/ Vice-President's PS/Treasury
& Ministry of Home Affairs . Ofce
Sub-total 18,908
FULLY PAID CONTRACTS KAMANI FAMILY
5 Kenya Prisons Security & 30 Oct 1997 $24.6 1,845 Andrew Macgill on behalf Mosses Abudo; Simeon Lesrima
Telecommunication - Project Phase I of LBA Systems Ltd PSI Home Affairs and PS /Treasury 6
National Heritage
6 Kenya Police Airwing Support 8 June 1998. $36.0 2,700 Brian Mills for Sound Day Z. K: A. Cheruiyot M. Chemengich
Project I Corp. and J. Manshing for PS/Internal Security PS /Treasury
Apex Finance Corporation
7 Kenya Police: Supply of 9 April 2002 $30.0 2,250 Brian Mills for Sound Day Z. K. A. Cheruiyot S. K. Bundotich
Security Equipment Addendum 2 Corporation PS/ Internal Security Financial Secretary
Sub-total 6,795
PARTLY COMPLETED CONTRACTS
KAMANI FAMILY
8 Kenya Police: Supply of Security. 14 June 2002 31.8 2,385 Brian Mills on behalf of Sound Z. K. A. Cheruiyot S. K. Bundotich
Equipment Addendum 3 Day Corporation PS Internal Security Financial Secretary
9 Kenya Police Aiming Support 12 July 2002 $12.8 960 J. Manshing for Apex. Z. K. A. Cheruiyot S. K. Bundotich
Project Finance Corporation PS Internal Security Financial Secretary
10 National Early Warning
Security System (NEWSS) for 12 July 2002 $35.0 2,625 Andy Macgill on behalf of LBA Sammy Kyungu S. K. Bundotich
Meteorological Department PS, Transport Financial Secretary
and Communications
11 Kenya Prisons Security 19 Nov 2002 29.7 2,643 Andrew Macgill on behalf Ali. Koran & PSI S. K. Bundotich
and telecommunication of. LBA Home Affairs and Financial Secretary
Project Phase 2 . National Heritage
12 Multi-Channel Security 29 May 2003 49.7 4,423 Dave Doyle for Globotel Dave Mwangi- Joseph Magari
Telecommunication System and David Dunkley- for PS Internal Security PS/Treasury
for Administration Police Midland Finance Ltd.
13 Modernization of Police Equipment 17 Dec 2003 40.0 3,569 Brian Mills on behalf of Dave Mwangi Joseph Magari
and Accessories both Sound Day and PSI Internal Security PS/Treasury
Apex Corporation
Sub-total 16,605
ANURA PERERA
14 Broadband Network PCK. VSAT 11 Jul 2002 $11.8 885 Michael Allan on behalf of Sammy Kyungu S K. Bundotich
Equipment / Fir-StMercantile Spacenet Inc, the supplier PSI Transport and Financial Secretary
Securities Corporation (FMSC) and A Gusman for First Communication
Mercantile Securities Corp
15 Bandwidth Spectrum and 11 July, 2002 $28.1 2,108 AvramZivTal, on behalf Sammy Kyungu S. K. Bundotich
Network Operation/ of UniVerSal Satspace PS/Transport and Financial Secretary
Universal Satspace (USS) Communication
16 Project Nexus (Defence 19 Nov, 2002 36.9 3,284 Anurath Gunarwadena on Sammy Kyungu S. K. Bundotich
Command Centre behalf of Nedermar Technology PS, Transport and Financial Secretary
witnessed by Micheal Allan Communication
17 Naval Ship (Oceanographic 15 July, 2003 51.9 4,619 J. K Marrio for Euromarrine; Sammy Kyungu
Survey Vessel) Christopher Kompasa PS/ Defence Joseph Magari
for Navigia Capital; Hairis PS/Treasury
for Empressa Financas
18 Project Fragstaff (National
Counter Terrorism Control Centre) 20 Jan, 2004 $40.7 2,053 Harry Smith Flenkirsen on Brig(Rtd) Wilson Boinett Joseph Magari
behalf of Clara Systems Ltd Director-General, NSIS PS/Treasury
Sub-total 13,949
Grand Total. 56,257
FAIR SETTLEMENT VALUES AND RESOLUTION STRATEGIES FOR SECURITY
CONTRACTS - OCTOBER 2013
CONTRACT NAME Date Signed Project Value Fair RESOLUTION
Settlement STRATEGY
Price
Forex Ksh m Kshm
I CANCELLED CONTRACTS KAMANI FAMILY
1 Forensic Sciences 16 Aug 2001 $54.6 4,095 - Funds returned and
Laboratory for CID contract cancelled
2 Security Vehicles for 16 Aug 2001 $90.0 6,750 - Funds returned and
Kenya Police contract cancelled
(Silverson Establishment)
3 Kenya Police Law 19 Nov 2003 58.7 5,229 Funds returned and
& Order (E-Cops) contract cancelled
/Infotalent
4 Immigration Security 4 Dec 2003 31.9 2,839 - Funds returned and
& Document Control contract cancelled
System (ISDC)
18,908
II FULLY PAID CONTRACTS
5 Kenya Prisons Security 30 Oct 1997 $24.6 1,845 (3,375) Recovery not
& Telecommunication feasible. Close le
Project Phase I
6 Kenya Police Airwing 8 June 1998 $36.0 2,700 (3,472) Recovery not
Support Project 1 feasible. Close le
7 Kenya Police: Supply 9 April 2002 $30.0 2,250 (1,388) Recovery not
of Security Equipment feasible. Close le
Addendum 2
Sub total 6,795 (8,235)
Ill PARTLY COMPLETED CONTRACTS
Kamani Family
8. Kenya Police: Supply 14 June 2002 $31.8 2,385 (1057) Cancel contract and
of Security Equipment recover funds
Addendum 3
9. Kenya Police Airwing 12 July 2002 $12.8 960 (126) Cancel contract and
Support Project 2 recover funds
10 National Early 12 July 2002 $35.0 2,625 (1050) Cancel contract and
Warning Security recover funds
System (NEWSS) for
Meteorological Deptment
11 Kenya Prisons Security 19 Nov 2002 29.7 2,643 (522) Cancel contract and
and telecommunication recover funds
Project Phase 2
12Multi-channel Security 29 May 2003 49.7 4,423 (1,071) Cancel contract and
Telecommunication recover funds
System for
Administration Police
13 Modernization of Police 17 Dec 2003 $40.1 3,569 (1.84) Cancel contract and
Equipment and recover funds
Accessories
Sub total 16,605 (4,010)
Anura Perera
14 Broadband Network 11 July, 2002 $11.8 885 421 Judgment 10.1m
PCK VSAT Equipment/ (Ksh 868m)
First Mercantile Negotiation
Securities Corporation recommended
(FMSC)
15 Bandwidth Spectrum 11 July, 2002 $28.11 2,108 (1,272) Mediation 7.6m
and Network Operation (Ksh 653m)
/Universal Satspace Negotiation to
(USS) proceed
16 Project Nexus (Defence 19 Nov, 2002 36.9 3,284 2,310 Successfully
Command Centre) negotiated
paid 14m (Ksh1.54 bn)
17 Naval Ship 15 July, 2003 51.9 4,619 4,180 Successfully
(Oceanographic Survey negotiated 34m
Vessel) (Ksh 3.74bn ) paid
18 Project Flagstaff 20 Jan, 2004 40.7 3,053 N/A Not Valued.
(National Counter Negotiation
Terrorism Control Centre in progress
Sub total 13,949 - -
GRAND TOTAL 56,257
NOTE: 1) The fair settlement value is based on fair value of deliveries less the GoK pay-
ments adjusted by interest due to either party. The amounts were computed in 2007
but were updated during negotiations of contracts Nos 14-17
2) Exchange rate $1= Ksh 75 1 =Ksh 89. The exchange in the early reports is applied
so that the shilling value of contracts does not keep changing
FAIR SETTLEMENT VALUES AND RESOLUTION STRATEGIES FOR SECURITY
CONTRACTS - OCTOBER 2013
CONTRACT NAME Date Signed Project Value Fair RESOLUTION
Settlement STRATEGY
Price
Forex Ksh m Kshm
I CANCELLED CONTRACTS KAMANI FAMILY
1 Forensic Sciences 16 Aug 2001 $54.6 4,095 - Funds returned and
Laboratory for CID contract cancelled
2 Security Vehicles for 16 Aug 2001 $90.0 6,750 - Funds returned and
Kenya Police contract cancelled
(Silverson Establishment)
3 Kenya Police Law 19 Nov 2003 58.7 5,229 Funds returned and
& Order (E-Cops) contract cancelled
/Infotalent
4 Immigration Security 4 Dec 2003 31.9 2,839 - Funds returned and
& Document Control contract cancelled
System (ISDC)
18,908
II FULLY PAID CONTRACTS
5 Kenya Prisons Security 30 Oct 1997 $24.6 1,845 (3,375) Recovery not
& Telecommunication feasible. Close le
Project Phase I
6 Kenya Police Airwing 8 June 1998 $36.0 2,700 (3,472) Recovery not
Support Project 1 feasible. Close le
7 Kenya Police: Supply 9 April 2002 $30.0 2,250 (1,388) Recovery not
of Security Equipment feasible. Close le
Addendum 2
Sub total 6,795 (8,235)
Ill PARTLY COMPLETED CONTRACTS
Kamani Family
8. Kenya Police: Supply 14 June 2002 $31.8 2,385 (1057) Cancel contract and
of Security Equipment recover funds
Addendum 3
9. Kenya Police Airwing 12 July 2002 $12.8 960 (126) Cancel contract and
Support Project 2 recover funds
10 National Early 12 July 2002 $35.0 2,625 (1050) Cancel contract and
Warning Security recover funds
System (NEWSS) for
Meteorological Deptment
11 Kenya Prisons Security 19 Nov 2002 29.7 2,643 (522) Cancel contract and
and telecommunication recover funds
Project Phase 2
12Multi-channel Security 29 May 2003 49.7 4,423 (1,071) Cancel contract and
Telecommunication recover funds
System for
Administration Police
13 Modernization of Police 17 Dec 2003 $40.1 3,569 (1.84) Cancel contract and
Equipment and recover funds
Accessories
Sub total 16,605 (4,010)
Anura Perera
14 Broadband Network 11 July, 2002 $11.8 885 421 Judgment 10.1m
PCK VSAT Equipment/ (Ksh 868m)
First Mercantile Negotiation
Securities Corporation recommended
(FMSC)
15 Bandwidth Spectrum 11 July, 2002 $28.11 2,108 (1,272) Mediation 7.6m
and Network Operation (Ksh 653m)
/Universal Satspace Negotiation to
(USS) proceed
16 Project Nexus (Defence 19 Nov, 2002 36.9 3,284 2,310 Successfully
Command Centre) negotiated
paid 14m (Ksh1.54 bn)
17 Naval Ship 15 July, 2003 51.9 4,619 4,180 Successfully
(Oceanographic Survey negotiated 34m
Vessel) (Ksh 3.74bn ) paid
18 Project Flagstaff 20 Jan, 2004 40.7 3,053 N/A Not Valued.
(National Counter Negotiation
Terrorism Control Centre in progress
Sub total 13,949 - -
GRAND TOTAL 56,257
NOTE: 1) The fair settlement value is based on fair value of deliveries less the GoK pay-
ments adjusted by interest due to either party. The amounts were computed in 2007
but were updated during negotiations of contracts Nos 14-17
2) Exchange rate $1= Ksh 75 1 =Ksh 89. The exchange in the early reports is applied
so that the shilling value of contracts does not keep changing
Tuesday, May 20, 2014 / The Standard NATIONAL NEWS / Page 3
THE RETURN OF ANGLO LEASING
Deputy Solicitor General Muthoni Kimani and Attorney General Githu Muigai
at a Press conference in Nairobi yesterday. [PHOTO: JOHN MATUA]
AG defends his ofce
on Anglo Leasing, says
payment legally done
By GEOFFREY MOSOKU
Besieged Attorney General Githu
Muigai yesterday came out to defend
himself and the State Law Ofce over
the controversial payment of Sh1.4
billion to Anglo Leasing contracts.
Prof Githu convened a press con-
ference and gave a chronology of
events leading to the payments, as he
sought to distance himself from
blame, adding that the State sought
legal opinion from experts.
He dismissed the argument that
his ofce compromised the case
thereby exposing the country to mas-
sive losses in dubious payments. He
also challenged the notion that the
Government failed to defend the
cases both in Switzerland and the
UK.
A visibly agitated Githu said the
Government sought opinion from one
of the most prestigious law rms in
London and globally on the cases.
Although he did not directly men-
tion names, the AG pointed an accus-
ing nger at his predecessor and
current Busia Senator Amos Wako,
and former ministers Musalia Muda-
vadi and Chris Obure (Transport and
Finance ministers in 2002) and former
Postmaster General Francis Chaho-
nyo who were in ofce when the mega
deals were signed.
IT WASNT ME
The man you see before you is a
mortician. The patient died on the
operating table long time ago. Githu
Muigai is the mortician. If you think
the patient should have lived, ask the
surgeons, Githu said.
The AG, who is constitutionally the
chief legal advisor to the Government,
further sought to distance the State
Law Ofce from any blame saying
their role was only restricted to advi-
sory.
Its not for the AGs ofce to say
what has been supplied or not but the
relevant ministry, and PWC have con-
stantly admitted that broadband was
supplied. The AG makes legal opin-
ions and as to what the persons ad-
vised has to do, its upon them, Prof
Githu said.
He added: It has been said that
the Government paid ghost compa-
nies, I have particulars of the people
paid and the les are completely up
to date. It has been said these are con-
tracts where air was supplied. It is not
for the AG to say what has been sup-
plied or not. The Ministry of Commu-
nication and PWC have consistently
admitted that Kenya received broad-
band capacity from this company.
Speaking moments after the Law
Society of Kenya (LSK) moved to court
and petitioned Parliament to eject
him, Githu told journalists that he had
called them to respond to unwar-
ranted attacks in the media, public
places and funerals by people target-
ing his ofcers, his ofce and him-
self.
About LSKs move to strike him off
the roll of practicing lawyers in the
country, Githu added; The treatment
they have meted out on me in the past
72 hours is totally unjustied, regret-
table and motivated by other consid-
eration. I regret that LSK has moved
that way and I have been in the public
long enough to know when articles
appear constantly in the media by the
same people, then those people have
a strategy.
He argued that the decision on
Anglo Leasing was made before he
assumed ofce on August 29, 2011
IN AGS WORDS
The Government sought opin-
ion from one of the most pres-
tigious law rms in London and
globally on the cases
Its not for the AGs ofce to
say what has been supplied or
not but the relevant ministry,
and PWC have constantly admit-
ted that broadband was sup-
plied. The AG makes legal opin-
ions and as to what the persons
advised has to do, its upon them
My ofce acted within law and
did not use any dodgy proce-
dures in the handling of the An-
glo Leasing contracts, as it has
been widely alleged
explaining that at no time was Kenya
unwilling to pursue the matter save
for the fact that all attempts for appeal
were blocked.
Githu said contrary to accusations
of laxity, his ofce had put up a spir-
ited ght to defend the public by
sending the Solicitor General, Njee
Muturi, to a London court to seek an
adjournment and leave to appeal,
which all went against Kenya.
At the court, Githu said Mr Njee
was asked to either accept a $7 million
arbitration ward or the original award
of $28 million where he made a tele-
phone call home to seek fresh instruc-
tion on way forward.
Its then that the AG invited Trea-
sury boss Henry Rotich and his PS
Kamau Thuge and Deputy Solicitor
General Muthoni Kimani and had a
telephone conversation that resolved
to enter consent of settling the arbi-
tration award.
GOVERNMENT APPROVAL
Its a judgmental call that every
lawyer has to make. We told the So-
licitor General to accede to the pay-
ment of the $7 million, Githu told
journalists.
Accompanied by Ms Kimani, the
AG displayed documents to the me-
dia, which he said were available for
scrutiny, insisting that Kenya acted
procedurally and transparently as it
made informed decisions after wide
consultations with legal experts be-
fore taking any action in handling the
matter.
He explained that his ofce acted
within law and did not use any dodgy
procedures in the handling of the
Anglo Leasing contracts, as it has
been widely alleged.
Any allegation therefore, that
these cases were being mediated or
handled in England under the table,
under wraps in a quick fashion to
achieve ulteriornothing could be
further from the truth, nothing could
be more libelous of my ofcers, of my
ofce and of myself, Githu retorted.
The AG revealed that a Kenyan
lawyer John Wambugu has also taken
the Government to court claiming
Sh100 million as legal fee after he was
appointed by the then AG Wako on the
request of former Information Minis-
ter Mutahi Kagwe.
Githu, as it appeals against court ruling
Tuesday, May 20, 2014 / The Standard
Page 4 / NATIONAL NEWS
Anti-graft agency starts probe into
18 contracts following directive
By MOSES MICHIRA
The Ethics and Anti-Corruption
Commission (EACC) has re-started
investigations into the 18 Anglo Leas-
ing contracts following a presidential
directive issued last week.
The anti-graft agency will work
with the Director of Public Prosecu-
tions to nd and charge Government
ofcials involved in the scandal that
was rst exposed 10 years ago.
We have now partnered with the
DPP in the fresh investigations with a
focus on the legality of all the con-
tracts, EACC spokesman Yassin
Amaro told The Standard.
It is the rst time the DPP will be
directly involved in the decade-long
probe that has largely been futile.
The move comes days after Presi-
dent Uhuru Kenyatta ordered fresh
investigations into the scandal, with
a view to recovering funds that have
been lost in the shoddy contracts.
Uhuru directed EACC to do ev-
erything they can to ensure that this
portion of money is recovered and
Kenya gets restitution. Amaro says
the new probe will seek to expose the
architects of the scheme, who would
then be prosecuted by ofcers from
the DPP. The anti-graft agency does
Commission is set to
work with the DPP
to nd and charge
Government ofcials
implicated in scandal
addressed to the anti-corruption
commission.
The said evidence Mutua is refer-
ring to is an earlier correspondence
dated December 2013 and the actual
proceeding of the claim by Universal
Satspace. LSK had earlier threatened
to sue the AG, Solicitor General Njee
Muturi and Senior Deputy Solicitor
General Muthoni Kimani over their
position in the payment of the con-
troversial claims worth Sh1.4 billion.
The three advised the State that
there was no chance for Kenya to
contest the controversial court rul-
ings, and settlement on the claims
would be in the best interest of the
country.
THE ATTORNEY GENERALS DEFENCE
Githu has defended himself severally, including at a press confer-
ence he called yesterday, where he claimed there was nothing he
could have done to save Kenya in the litigation that has staggered in
the courts for 10 years
The AG claims that the patient was already dead by the time he
was appointed AG, alluding to the proposition that Kenya had already
lost all chances to win in suits led by First Mercantile Securities Cor-
poration in Geneva, and Universal Satspace in London
By MOSES MICHIRA
President Uhuru Kenyatta has
said he feels terrible that his
Government is about to pay Sh1.4
billion to Anglo Leasing rms but
that he had no choice because it is
in public interest.
Uhuru spoke about his agony
during a press conference at State
House on Friday when he said his
view about the scandalous con-
tracts, which he described as a
scam in 2006 when he was Ofcial
Leader of the Opposition, hasnt
changed.
The President explained the
controversial payments stand in
the way of Kenyas planned Euro
bond that is expected to raise
Sh132 billion to plug a shortfall in
the national budget.
There was no way we could go
for this particular bond without
rst having cleared our interna-
tional obligations. So I gave that
directive, said President Kenyat-
ta.
Attorney General Githu Muigai
has said that Kenya should just
pay up, because it has exhausted
the avenues for appeal for the
suits it lost in Geneva and London.
Uhuru, who had investigated the
scandal back in 2006 when he was
the opposition leader, found it to
be a costly scam.
Eight years ago, President Ke-
nyatta then Gatundu South MP,
asked Parliament to stop archi-
tects of the Anglo Leasing scandal
because they would continue to
haunt even future governments
and even terming the scheme as a
scam.
Uhuru pained
by Sh1.4b
payment
not have prosecutorial powers, but
would typically nish its investiga-
tions before the ndings are handed
over to the police as evidence.
EACC and its predecessor agen-
cies have been unable to crack and
expose the scandal that is feared to
cost the county tens of billions.
Already, President Kenyatta had
directed the national Treasury to pay
Sh1.4 billion to two of the rms
against disapproval by Parliament
while blasting the State Law Ofce for
failing to defend Kenya properly in
foreign courts.
It is for the legal council that rep-
resents our republic to up their game
and to ensure that we dont lose any
more cases going forward because as
we lose them they cost us on issues
that we do not believe are correct.
UNFAVOURABLE JUDGEMENT
After the Presidents criticism on
Friday, the Law Society of Kenya yes-
terday accused Attorney General
Githu Muigai of procuring an unfa-
vourable judgement in the British
court in an Anglo Leasing case where
the State lost.
LSK Chairman Eric Mutua said
Githu had conspired to ensure Kenya
lost in the case, before the State was
ordered to pay Sh667 million to Uni-
versal Satspace in December last year.
Mutua, who says there is evidence to
back his claim, now wants EACC to
investigate the AGs conduct in han-
dling of the case.
The following documentary evi-
dence points to a possible offence of
conspiracy to defraud public nances
through procurement of an irregular
judgment, Mutua said in a letter
THE RETURN OF ANGLO LEASING
www.dayliff.com
REQUIREMENTS AND QUALIFICATIONS
Namibian Citizen or eligible to work in Namibia;
National Degree/Diploma in Radiography: Ultrasound;
Possession of necessary CPD points;
Must have at least 2 years working experience in Sonography and
should be able to perform the following examinations:
1. Obstetrics including frst trimester and fetal anomaly scans
2. Gynaecology
3. Abdominal scans
4. Small parts
5. Vascular
Musculoskeletal experience would be an advantage as well as FMF
(fetal medicine foundation) accreditation.
A disposition towards quality and excellent patient care;
Well-developed interpersonal and communication skills;
Ability to work independently, organise effectively and compile reports;
Ability to perform effectively under pressure.
Interested Persons may submit their applications, CVs and copies
of supporting documents in condence to: The Chief Radiographer,
Welwitschia Hospital, PO Box 1760, Walvis Bay or per E-mail to
qualitycare@erongomedical.com or
erongocare@walvisbay-medicaprk.com
Short-listed candidates will be contacted within one week of closing date
(31 May 2014) and must be willing to submit themselves to interview and
selection procedures.
VACANCY
Walvis Bay Medipark (Pty) Ltd t/a Welwitschia Hospital, an Equal Opportunity
Employer in Namibia, seeks to employ the following as a member of our dynamic
health care team in Walvis Bay.
SONOGRAPHER
Page 5 Tuesday, May 20, 2014 / The Standard Page 5 Tuesday, May 20, 2013 / The Standard
P.M. Ngugi
Chairman
E.N. Ngugi
Director
E.M. Kimemia
Director/ Principal Ofcer
STATEMENT OF MOVEMENT IN DEPOSIT ADMINISTRATION & INVESTMENT
CONTRACT LIABILITIES FOR THE YEAR ENDING 31 DECEMBER 2011
Head Ofce: Chester House, 1
st
Floor, Koinange Street, P.O. Box 30170-00100, Nairobi, Kenya
Tel: 2216792, 2241620-6, 2216450, Cell Phone: 0722-205286, 0733-600462, Email:kai@kenyanalliance.com
The above statements of Comprehensive Income and Financial position are extracts from the Financial statements of the company for the year ended 31 December 2013 which were
audited by Ernst and Young and received an unqualied opinion. The nancial statements were approved by the Board of Directors on 29/04/2014 and signed on its behalf by:
P.M. Ngugi E.B.M Chele E.M. Kimemia
Chairman Director Managing Director/ Principal Ofcer
STATEMENT OF MOVEMENT IN DEPOSIT ADMINISTRATION & INVESTMENT CONTRACT LIABILITIES FOR THE YEAR ENDING 31 DECEMBER 2013
AMOUNTS PAYABLE UNDER DEPOSIT ADMINISTRATION CONTRACTS
2013 2012
KSHS KSHS
As at 1 January 475,319,021 359,092,833
Pension Fund Deposits Received 106,209,752 77,548,201
Surrenders and Annuities Paid (39,679,046) (21,407,696)
Interest Payable to Policy Holders 67,500,174 83,717,484
Administrative Expenses (4,638,249) (2,894,487)
Increase in Un-Appropriated surplus (37,283,306) (20,737,314)
As at 31
st
December 567,428,346 475,319,021
INVESTMENT CONTRACT LIABILITIES 2013 2012
KSHS KSHS
As at 1 January 10,934,001 8,076,047
Pure Investment Funds Received 5,334,760 3,896,433
Surrenders and Annuities Paid (1,664,175) (1,929,319)
Interest Payable to Policy Holders 1,787,069 2,382,252
Administrative Expenses (2,594,177) (1,440,004)
Increase/(decrease) in Un-Appropriated surplus 30,459,882 (51,408)
As at 31
st
December 44,257,360 10,934,001
KEY RATIOS Long term business General business 2013 2012
Capital Adequacy Ratio 100% 100% 100% 100%
Solvency Ratio 1033% 526% 584% 638%
Claims Ratio 70% 45% 37% 41%
Expense Ratio 16% 43% 37% 44%
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31
ST
DECEMBER 2013
Long term business General business Total 2013 Total 2012
Shs Shs Shs Shs
Gross Written Premiums 199,232,497 1,199,048,043 1,398,280,540 1,033,147,455
Less: Outward Re-Insurance Premiums 152,475,115 110,607,628 263,082,743 182,746,683
Net Written Premiums 46,757,382 1,088,440,415 1,135,197,797 850,400,772
Gross earned premiums 199,232,497 1,078,060,167 1,277,292,664 938,980,256
Less: reinsurance premium ceded 152,475,115 104,565,516 257,040,631 174,628,507
Net earned premiums 46,757,382 973,494,651 1,020,252,033 764,351,749
Investment income 71,217,327 122,276,271 193,493,598 208,095,843
Commissions earned 37,845,289 24,978,850 62,824,139 41,257,765
Other income 163,461 756,401,733 756,565,194 30,027,691
Net income 155,983,459 1,877,151,505 2,033,134,964 1,043,733,048
Claims and policy holder benets payable 217,370,042 536,194,047 753,564,089 462,180,498
Less: Reinsurers share of incurred claims 122,161,220 116,316,885 238,478,105 93,345,568
Net claims payable 95,208,822 419,877,162 515,085,984 368,834,930
Operating and other expenses 33,776,123 399,145,889 432,922,012 381,392,805
Commissions payable 16,481,706 112,207,691 128,689,397 108,440,558
Statutory levies 238,944 14,587,134 14,826,078 11,593,766
50,496,773 525,940,714 576,437,487 501,427,129
Prot/ (loss) before tax 10,277,864 931,333,629 941,611,493 173,470,989
Income tax expense - (35,491,967) (35,491,967) (59,236,302)
Prot for the year 10,277,864 895,841,662 906,119,526 114,234,687
Earnings Per Share (Basic & Diluted) 39.82 3.91
STATEMENT OF PROFIT & LOSS AND OTHER COMPREHENSIVE INCOME
Prot for the year 10,277,864 895,841,662 906,119,526 114,234,687
Other Comprehensive Income, net of tax
Gain/(Loss) on revaluation of land and buildings 56,854,000 56,854,000
Gain/(Loss) on available for sale assets (805,790) (805,790) 39,272,310
Total Comprehensive Income, net of tax 10,277,864 951,889,872 962,167,736 153,506,997
STATEMENT OF FINANCIAL POSITION AS AT 31
ST
DECEMBER 2013
Long term business General business Total 2013 Total 2012
CAPITAL EMPLOYED Shs Shs Shs Shs
Share capital 150,000,000 300,000,000 450,000,000 450,000,000
General reserve 6,000,000 6,000,000 6,000,000
Revaluation Reserve 76,194,000 76,194,000 19,340,000
Available-for-sale reserve 129,265 129,265 935,055
Statutory reserve 45,335,380 45,335,380 35,057,516
Retained earnings 955,595,725 955,595,725 765,753,661
SHAREHOLDERS FUNDS 201,335,380 1,331,918,990 1,533,254,370 1,277,086,232
ASSETS
Property and equipment - 132,947,290 132,947,290 78,556,295
Intangible Assets 79,271 1,502,081 1,581,352 4,464,451
Prepaid operating lease rentals - 582,000,000 582,000,000 203,577,205
Investment property - 672,848,551 672,848,551 986,737,809
Investment in the Kenya Motor Insurance Pool - 43,351,334 43,351,334 31,589,701
Deferred tax - 6,535,846 6,535,846
Receivables arising out of reinsurance arrangements 3,371,576 119,783,807 123,155,383 65,107,138
Receivables arising out of direct insurance arrangements 36,953,932 324,837,570 361,791,502 235,529,024
Deferred acquisition costs - 60,810,612 60,810,612 40,390,430
Reinsurers share of insurance liabilities 46,695,653 256,602,180 303,297,833 256,329,733
Other receivables 31,036,842 58,753,146 89,789,988 108,249,964
Held to maturity investments 88,100,000 150,000,000 238,100,000 223,861,708
Available for sale nancial Instruments 23,040,405 23,040,405 94,440,555
Deposits with nancial institutions 681,951,081 624,083,082 1,306,034,163 1,145,456,934
Tax recoverable - - 10,303,811
Cash and bank balances 7,005,790 14,835,860 21,841,650 34,022,359
TOTAL ASSETS 895,194,145 3,071,931,764 3,967,125,909 3,518,617,117
LIABILITIES
Insurance contract liabilities 75,974,211 1,047,910,254 1,123,884,465 1,152,728,925
Payable under deposit administration contracts 567,428,346 - 567,428,346 475,319,021
Payable under investment contracts 44,257,360 - 44,257,360 10,934,001
Provision for unearned premium - 555,111,054 555,111,054 434,123,178
Deferred income tax - - - 25,550,082
Income Tax Payable 5,400,999 5,400,999 -
Creditors arising from reinsurance arrangements - 35,109,584 35,109,584 41,531,220
Cash and bank balances - Over Draft - - 29,671,592
Other payables 6,198,848 96,480,883 102,679,731 71,672,866
TOTAL LIABILITIES 693,858,765 1,740,012,774 2,433,871,539 2,241,530,885
NET ASSETS 201,335,380 1,331,918,990 1,533,254,370 1,277,086,232
By RAWLINGS OTIENO
CORD leaders have argued
there is no justication for
payment of Sh1.4 billion to
Anglo-Leasing companies.
They said the contracts
were illegally procured and
that Kenya should not commit
to fraudulent dealings.
The Opposition also threat-
ened to impeach President
Uhuru Kenyatta over his direc-
tive to the Treasury to pay the
debt. Kakamega Senator Bonny
Khalwale asked why the Jubilee
government is not implement-
ing what was in the report
when Uhuru chaired the Par-
liamentary Accounts Commit-
tee (PAC).
FLEECE TAXPAYERS
In 2006, Uhuru, then the
Opposition leader, chaired the
PAC, which authored the re-
port that described the more
than Sh50 billion contracts as
a system hatched by a few in-
dividuals to continually eece
taxpayers.
Khalwale claimed Anglo
Leasing companies were
owned by two Indians and two
Kenyans, whose names are in
the report which Uhuru sub-
mitted when he was the PAC
chairman.
We are the representatives
of the people, and if he goes on
doing this he will be the rst
President in Kenya to be im-
peached, warned Khalwale.
In particular, the Opposi-
tion coalition dared the Na-
tional Treasury Cabinet Secre-
tary Henry Rotich to authorise
the payments and face censure
Motion in Parliament and Sen-
ate.
Deputy Minority Leader
Jakoyo Midiwo castigated the
move to pay the two compa-
nies, terming Uhurus authori-
sation to pay as unconstitu-
tional.
This is will be the nal
onslaught to bad governance.
Our people cannot keep on
suffering because of a few in-
dividuals at Harambee House.
If Rotich pays this Anglo-Leas-
ing money then, we will jail
you, humiliate you and recom-
mend that you are hanged at
Uhuru park in public, because
this is peoples money and you
are the accounting ofcer,
said Jakoyo.
He went on; The President
has money; if he wants to pay
with his own money then he
can go ahead and pay, but not
the public money.
In a parked political rally at
the famous Kamkunji grounds
in Kibera, Jakoyo tore into
Uhurus declaration that Kenya
has no option but to pay, say-
ing the President does not have
any mandate in law to autho-
rise the release of money with-
out passing through the Parlia-
ment.
Awendo MP Jared KOpiyo
asked how Kenyans can be
sure that the money Uhuru is
directing to be paid would not
benet some few people in the
Government if the faces be-
hind the Anglo Leasing are not
made public.
KOpiyo argued that the
Jubilee government had failed
to be transparent and is not
keen on ghting the ghost of
corruption and impunity.
His counterpart Suna East
MP Junet Mohamed claimed
that the Government was re-
warding those who politically
helped Jubilee fund its cam-
paigns ahead of last years
General Election.
Mohamed accused the Ju-
bilee administration of launch-
ing aggressive attacks on re-
forms.
Tuesday, May 20, 2014 / The Standard
Jakoyo: This will be the nal
onslaught to bad governance.
Kenyans must stop suffering.
Khalwale: We are the
representatives of the people
and we have to stop this.
By WILFRED AYAGA
The National Alliance (TNA) re-
sponded to weekends call for mass
demonstrations over the controversial
Anglo Leasing payments by rival
party CORD and promised to shoot
down impeachment Motion against
President Uhuru Kenyatta.
TNA also blamed former Attorney
General Amos Wako and former min-
isters Musalia Mudavadi and Chris
Obure for the dubious Anglo Leasing
contracts.
The deals involving First Mercan-
tile and Universal Satspace were
signed in July 2002 by Transport and
Finance ministries. Mudavadi was
Transport minister, Obure was Fi-
nance minister and Amos Wako was
the Attorney General. Any attempt to
take over the Government other than
through lawful means amounts to
treason. We are not paying because
we like it, but we would like to save
Kenyans the pain of paying an extra
Sh25 billion as accrued interest, TNA
Chairman Onyango Oloo told a press
conference yesterday.
MPs and political leaders allied to
the party called separate press confer-
ences during which they poured cold
water on CORD leaders who last Sun-
day threatened to call people out into
the streets to protest the payments,
which have the backing of President
Kenyatta.
During the Sunday rally, CORD
TNA tells rivals off over mass action
Party claims some
members of CORD
were in ofce when
deals were initiated,
promise to shoot down
impeachment Motion
Director of Liaison at State House Patrick Ngatia, TNA Secretary General Onyango Oloo and party Executive Director
Joseph Mathai address the Press at the TNA headquarters in Nairobi, yesterday. [PHOTO: PIUS CHERUIYOT/STANDARD]
threatened to impeach the President,
stating that his decision to make the
payments was against the wishes of
majority.
The leaders promised to start a
series of countrywide rallies after their
leader Raila Odinga, currently in the
US, returns to the country.
READY FOR MOTION
CORDs sentiments, however, ap-
pear to have rubbed TNA the wrong
way with the Senate Majority Leader
Kithure Kindiki and House Majority
Whip Katoo ole Metito leading 14 MPs
and senators in denouncing the calls
by the Opposition.
The MPs, who included Kimani
Ichungwa (Kikuyu), Mithika Linturi
(Igembe South), Mary Wambui (Otha-
Page 6 / NATIONAL NEWS
CORD threatens to impeach Uhuru as payment row rages
Chris Obure
Amos Wako
Musalia Mudavadi
MUDAVADI DEFENCE
UDF leader Musalia Mudavadi
has told off TNA for attempt-
ing to blame him for the Anglo
Leasing scandal. Inquiries were
made on the matter at which
point Mudavadis position was
known innocent, Mudavadi
said in a press statement issued
yesterday by his private secre-
tary Kibisu Kabatesi.
TNA BLAMES FORMER
STATE OFFICERS
ya), Jude Njomo (Kiambu Town) and
senators Charles Keter(Kericho) and
Naisula Lesuda (nominated) dared
the Opposition to table the impeach-
ment Motion.
We are ready to debate the Mo-
tion if it comes. However, they should
know that in the law it is impossible
to impeach the President. This is be-
cause they have no grounds to do so
and also because the President is not
just the chairman of some football
club which they can just remove. He
has members in both houses, said
Kindiki.
What we saw in Kibera was a
comedy show. What we are telling
them now is that we are ready for the
Motion and they can bring it on,
Ichungwa said.
The sentiments were made at the
same time that Oloo was addressing
another press conference at the TNA
headquarters, accompanied by a State
House ofcial Patrick Ngatia. Ngatia
is the Director of Liaison at State
House. Also present was the partys
executive director, Joseph Mathai.
They turned the heat on CORD
saying the people close to the Opposi-
tion were in Government when the
payments were signed. It also claimed
that utterances made by the CORD
leaders that they plan to take over the
government bordered on treason.
Amid the back and forth between
CORD and TNA, leaders allied to the
URP, which is an afliate of the Jubilee
coalition, have kept a studious slice
over the matter.
THE RETURN OF ANGLO LEASING
By MOSES NJAGIH
The controversial proposed Sh1.4
billion payout to Anglo Leasing com-
panies is already the subject of a
probe by two committees of Parlia-
ment.
MPs are focusing on unmasking
the shadowy gures associated with
the two companies that sued Kenya
for non-payment. The Senate Com-
mittee on Finance, Commerce and
Budget and the National Assemblys
Public Accounts Committee (PAC) are
investigating the saga.
Parliament waded into the contro-
versy after Treasury moved to the Na-
tional Assembly to seek concurrence
on Attorney General Githu Muigais
advice that Kenya settles the debt.
Meanwhile, the joint committees
of Budget and Finance in the Nation-
al Assembly, after meeting with of-
cials from both Treasury and the AGs
ofce, gave the green light for the pay-
ments to be honoured.
The report was due to be tabled in
Parliament on the same day that Trea-
sury ofcials met Jubilee MPs to lobby
House teams probe Anglo Leasing pay
They want to know
individuals linked to
the two companies
that sued Kenya for
non-payment
them to support the report.
But it was quietly removed from
the order paper after the legislators
walked out on the Treasury ofcials,
chanting Cant pay, wont pay.
In a report tabled in the National
Assembly before it went on recess and
which was presented by Budget Com-
mittee chairman Mutava Musyimi,
the joint teams recommended to the
House to allow the Government to
pay so that in return Kenya would be
eligible to oat its euro bond.
But PAC and the Senate commit-
tees have insisted that the payments
should not be made until all conten-
tious issues are addressed by their re-
spective probes.
Both Muigai and Treasury Cabinet
Secretary Henry Rotich are expected
to appear before the Senate commit-
tee chaired by Mandera Senator Bil-
low Kerrow this week to give details of
the proposed payments.
The committee also indicated it
would be probing the court processes
that led to the awards against Kenya,
looking at the defence the AGs ofce
made before the judges in both cases
in the United Kingdom and Switzer-
land.
When they come, they must be
prepared to tell us who the directors
of these companies are. They should
not come telling us that they would
need to go back and conduct a search,
said Kakamega Senator Boni Khal-
wale, a committee member. The Parliamentary Accounts Committee meets at Parliament buildings. [PHO-
TO: FILE/STANDARD]
NATIONAL NEWS / Page 7
Tuesday, May 20, 2014 / The Standard
By NDERITU GICHURE
Three Jubilee MPs have asked
President Uhuru Kenyatta to unmask
the faces behind the Anglo Leasing
scam before Sh1.4 billion is paid out
to two rms.
Njogu Barua (Gichugu), Julius
Ndegwa (Lamu West) and James Bett
(Kesses) said they supported the Sh1.4
billion payout but demanded that the
Head of State rst reveals those in-
volved.
Speaking at Kiamugunda Catholic
Church in Gichugu constituency on
Sunday, the legislators said it was im-
perative for the country to know who
was being paid the money.
The Government should go ahead
and reveal those behind Anglo Leas-
ing, and we will marshal support in
Parliament to ensure the President
has our support, Barua said.
They noted that most of the con-
tracts worth Sh5.6 billion had already
been paid by the previous regime.
It is hypocritical for CORD lead-
ers to keep on criticising everything
the President does in relation to the
scandal yet they were part of the Gov-
ernment that paid billions, Ndegwa
said. Bett said the opposition was de-
liberately trying to embarrass the
President.
Unmask those
behind scandal,
MPs tell Uhuru
THE RETURN OF ANGLO LEASING
By RAWLINGS OTIENO
The body charged with university
admissions has asked students who
have qualied to study degree and
diploma courses to review their ap-
plications online.
Kenya University and Colleges
Central Placement Services (KUCCPS)
Chief Executive John Muraguri said
58,000 students would be admitted
study degree courses. An additional
39,000 would be enrolled for diploma
courses.
Yesterday, KUCCPS launched its
online application system, which will
close at midnight on May 31. Through
the online platform, candidates can
review their choice of courses and
validate their applications.
The body has set the cut-off point
for admission to bachelors degree
programmes at B (60 points) for male
candidates and B- (58 points) for fe-
male candidates.
This is based on the total declared
capacity for programmes under Gov-
ernment sponsorship, and the perfor-
mance analysis of the 2013 Kenya
Certicate of Secondary Education
Examination results released this
year.
Muraguri said that candidates
must apply online to be admitted and
those who had applied, should check,
and if need be, revise their cluster
subjects.
All applicants including those
who may have submitted their appli-
cations earlier, either directly to uni-
versities and colleges or through their
respective schools, and would wish to
revise their choices can do so, said
Placements body gives
candidates up to May
31 to apply, review
choices and validate
their applications
Prospective varsity, college students
told to review applications online
By FAITH RONOH and
KAMAU MUTHONI
Former Chief Registrar of the Judi-
ciary (CRJ) Gladys Boss Shollei yester-
day told the High Court in Nairobi
that she no longer needed her job
back.
Through her lawyer Donald Kipko-
rir, Mrs Shollei said she has no inten-
tions of becoming the CRJ even after
the Industrial Court earlier quashed
her dismissal terming it unconstitu-
tional.
You will recall that she wanted to
come back but allow me to make it
clear that she (Shollei) has no inten-
tions of becoming the Chief Registrar
of the Judiciary, Kipkorir told the
court.
Mrs Shollei had through her law-
yer in March written to Chief Justice
William Mutunga asking him to ad-
vice on when she can resume ofce.
Kipkorir had argued that the im-
plication of the judgment was that
Sholleis dismissal from ofce was a
nullity and her constitutional rights
were violated.
But Kipkorir, who made submis-
sions during a hearing of an appeal by
the Judicial Service Commission (JSC)
challenging the Industrial Court rul-
ing, was categorical that Shollei was
no longer interested in her previous
job.
He further submitted that the pur-
pose of the petition at the Industrial
Court challenging the ousting of her
client was purely based on the process
followed by JSC in dismissing her.
JSC lawyers Paul Muite and Issa
Mansur argued that the Industrial
Court was not a High Court and there-
fore could not interpret the Constitu-
tion. But Kipkorir responded by say-
ing that such an argument was absurd
since JSC had not raised the issue at
the Industrial Court or before Justice
Mumbi Ngugi who transferred the
matter to the Industrial Court.
Furthermore the Constitution
sets article 162 establishing the Su-
preme Court, Court of Appeal and
High Court. The High Court includes
Labour Relations and Environment
Court which are high courts, not
lesser courts. All High Courts can de-
termine questions of the Constitu-
tion, Kipkorir argued.
Mrs Shollei tells court she isnt keen on reinstatement
Gladys Boss Shollei
Candidates wait to be taken through the process of applying for selection to
universities and colleges at University of Nairobi Ngong Road campus yester-
day. [PHOTO: BEVERLYNE MUSILI/STANDARD]
Tuesday, May 20, 2014 / The Standard
Page 8 / NATIONAL NEWS
Muraguri. Speaking to The Standard
yesterday at the Placement Head-
quarters at the Kenya Science College,
Muraguri said that all candidates with
a minimum overall grade of C- and
above are eligible to apply for diploma
programmes in various government
institutions.
Such candidates can apply to Ke-
nya Medical Training College (KMTC),
Teachers Training Colleges (TTCs)
and Technical, Industrial and Voca-
tional Training Colleges (TIVET).
Muraguri said that candidates who
meet the cut-off point set by the
Placement Service for admission to
bachelors degree programmes may in
addition apply for diploma pro-
grammes of their choice.
Those below the bachelors degree
cut-off point but with a minimum of
overall grade of C- can only apply for
diploma programmes.
According to the rules and guide-
lines, the minimum placement re-
quirement for bachelors degree for
candidates who schooled for both
their primary and secondary educa-
tion in counties classied as margina-
lised areas by CRA 2012 policy is B- (55
points).
OVERALL GRADE
Those with an overall grade of
grade B (60 points) for male candi-
dates and grade B- (58 points) for
Female candidates will be allowed to
make a total of eight choices of both
degree and diploma programmes.
Candidates with an overall grade
of C- and above but below grade B (60
points) for male and grade B- (58
points) for female students will be al-
lowed to make a maximum of six di-
ploma programme choices.
Candidates choices 1(a), 1(b) and
1(c) clusters must be similar pro-
grammes while choices 2, 3 and, 4 can
be any other programmes for both
degree and diploma programmes.
If a candidate qualies to apply for
a bachelors degree, they may choose
diploma choices as choice 5 and 6.
According to Muraguri, candidates
with disabilities will download and ll
the Disability Application Form and
return the dully lled form to the
Placement Service.
But to apply, all applicants will
have their KCSE index number, birth
certicate number and a valid email
account. Candidates wishing to revise
their applicationsthose who had
applied in schoolwill be charged
Sh1,000 while those who had not ap-
plied in school will pay Sh1,500.
Applicants who will have problems
with their application have been ad-
vised to seek assistance from any of
the listed universities and colleges
close to them.
THE CHOICES
The body has set the cut-off
point for admission to bach-
elors degree programmes at B
(60 points) for male candidates
and B- (58 points) for female
candidates
Candidates with a minimum
overall grade of C- and above
are eligible to apply for di-
ploma programmes in various
government institutions
BY FAITH RONOH
All common cadre staff serving in
various government ministries will,
starting July 1, 2014, report directly to
their respective Cabinet Secretaries.
This follows the recently launched
policy on Decentralisation of Human
Resource Management that will see
an overhaul in the functioning of hu-
man resource departments in various
ministries.
Public Service Commission (PSC)
Chairperson Margaret Kobia said lack
of control by cabinet secretaries over
staff, increased inefciency and dual
reporting relationship in support
functions prompted the overhaul in
the human resource department.
We have had cases where a mem-
ber of staff working under a certain
ministry is required to report to a dif-
ferent cabinet secretary depending on
their job description. The new policy
will ensure that we have staff directly
answerable to their ministry CS, Ko-
bia said.
DESTINATION
Kobia explained that the new pol-
icy will ensure that employees are
more focused in their respective des-
ignations thus boosting perfor-
mance.
The PSC chair said the new or-
ganisational structure for ministries
will be based on strategic plans man-
date of the respective ministries add-
ing that it will reduce workload for the
CSs and other senior ministry staff.
Cabinet secretaries at times leave
a gap especially when they have to
travel outside the country for work-
related issues. However, if they can
surround themselves with people who
say belong to this ministry and I re-
port to this CS then their job will be
almost purely delegating duties, Ko-
bia explained.
With the new structure, Kobia said,
there might be reshufing of employ-
ees in various ministries to ensure
they are well-placed in line with their
strengths and ability to deliver.
New civil
service policy
unveiled
Captains look for results not salutes
Tuesday, May 20, 2014 / The Standard
NATIONAL NEWS / Page 9
By Irvin Jalango
Education Cabinet Secre-
tary Jacob Kaimenyi has dis-
missed claims that he ordered
fees increment in all public
universities.
In a meeting with student
leaders from across the coun-
try in his Jogoo House ofce,
Prof Kaimenyi said he never is-
sued such a directive.
Government directives are
communicated ofcially
through memos and circulars.
No statement or directive, or
any documentation has been
written to that effect. We are all
surprised by the strike notice,
he said.
While referring to a speech
he delivered at Bomas on April
23, Prof Kaimenyi said the
Government was only consid-
ering a differentiated unit cost,
where different courses would
cost differently.
We cannot increase Uni-
versity fees without consulting
stakeholders, of which stu-
dents are the major players.
That responsibility is with the
universities councils, he
said.
Leaders from the National
University Students Organisa-
tion led by George Bush of Moi
University distanced them-
selves from the strike notice
and told Prof Kaimenyi they
had called for calm.
Notably missing was the
Babu Owino-led Kenya Uni-
versity Students Organisation
which the Principal Secretary
Belio Kipsang said he had met.
Kaimenyi said the matter may
have been politicised. He
urged the student leaders to
give dialogue a chance.
Babus group had called for
a strike today.
I didnt order fees increment, Kaimenyi tells students
Avoid city,
Sonu says on
strike plans
By ISAAC MESO
and ELEANOR NANDWA
University of Nairobi stu-
dent leaders have warned mo-
torists to keep off major roads
leading to the city centre due to
todays nationwide students
demonstrations.
Students Organisation of
Nairobi University (Sonu)
chairman Babu Owino urged
motorists to keep off Universi-
ty way, Nairobi CBD, Moi Ave-
nue, Parklands, Kikuyu Road
and Thika Superhighway.
If you are working within
Nairobi and you own a vehicle,
please leave it at home. We are
further warning motorists to
stay away from major roads
leading to town since they will
be ocked by demonstrators
he said.
Education Cabinet Secre-
tary Jacob Kaimenyi has re-
mained silent over this matter
and we strongly feel that the
only way we can get his atten-
tion is through paralysing
learning in our institutions.,
he said.
We have also received in-
formation that one of our stu-
Student leaders
want vehicle
owners to keep off
University Way,
Thika Road and
Kikuyu Road
Students Organisation of Nairobi University (Sonu) chairman
Babu Owino at a past Press conference. Public university stu-
dents are planning to stage demonstrations along certain roads
today. [PHOTO: FILE/STANDARD]
dent leaders received a bribe to
snub the demonstration. This
will not work as all the stu-
dents in public universities are
behind us, he added.
The Sonu chairman said
the nationwide demonstra-
tions by students from the sev-
en public universities will con-
tinue until the Government
addresses their grievances.
Sonu secretary general Jim
Akach said it was unfair for the
Government to increase uni-
versity fee and lower the maxi-
mum loan awarded to students
by the Higher Education Loans
Board.
The student leaders ques-
tioned the Governments mo-
tive to raise university fee at a
time when it was being haunt-
ed by the Anglo Leasing scan-
dal.
TASK FORCE
We wont allow the Gov-
ernment to raise our fee so as
to use part of the money to
fund Anglo Leasing, said
Akach.
Among the grievances they
want addressed are reduction
of current fee by half, increase
of HELB loans and provision of
grants to students.
The student leaders had
earlier given Prof Kaimenyi 14
days to establish a task force to
review university fees, insisting
they had not been consulted.
According to the student
leaders, the Government is
planning to double the fee for
regular students, which cur-
rently stands at Sh28,000 per
year.
Page 10 / NATIONAL NEWS
Tuesday, May 20, 2014 / The Standard
BY MICHAEL WESONGA
Public university unions have ad-
vised their members to commence in-
dustrial action from May 30 over
Sh3.76 billion allegedly misappropri-
ated by vice chancellors.
The national ofcials of the Uni-
versities Academic Staff Union (Uasu)
and the Kenya Universities Staff Union
(Kusu) told their more than 25,000
members to proceed with the strike
without further reference to the Gov-
ernment in case it fails to honour a re-
turn-to-work formula.
Speaking in Eldoret, Kusu Secre-
tary General Charles Mukwaya vowed
to stage a massive and protracted
withdrawal of services.
ADEQUATE TIME
What is coming out clearly are in-
nuendos to the effect that the chan-
cellors are now speaking with impu-
nity that they will not pay for lack of
funds, he said.
He insisted that the argument was
inexcusable given they had granted
the vice chancellors adequate time to
Varsity staff to strike in 10 days time
Uasu and Kusu tell
their members to
down tools from May
30 should State fail to
honour agreement
make up for the members salary
raise, house allowances and arrears
they had duly negotiated for.
We are telling our members to go
out and seek their money to the last
penny without further reference to
the Government or universities if they
would not have been fully paid by
30th of this month, he advised.
Article 5 of the agreement between
Kusu, Uasu, Kenya Union of Domes-
tic, Hotels, Educational Institutions,
Hospitals and Allied Workers and the
University Academic Staff Union Secretary General Musalia Edebe (left), Kenya University Staff Union Secretary General
Charles Mukwaya and National Chairman Anthony Nyakoni address the Press in Eldoret, yesterday. [PHOTO: MICHAEL WESON-
GA/STANDARD]
BY ERIC WAINAINA
President Uhuru Kenyatta has re-
quested best-performing secondary
schools to engage in academic ex-
change programmes in order to help
improve education standards.
The Head of State said national
schools like Alliance High, which per-
form excellently, should share the se-
crets behind their success with other
schools.
Dont keep what you hold dearly.
Let other people learn from what you
have, Uhuru said during a thanks
giving ceremony at Alliance.
The President was supporting the
request by Kiambu Senator Kimani
Wamatangi and Governor William
Kabogo to Alliance School manage-
ment to start such programmes as a
way of improving education stan-
dards in the county.
They raised concerns that despite
the county hosting the best perform-
ing school, majority of other schools
in the area have been performing
poorly. Wamatangi had asked the
school management to start an ex-
change programme where the stu-
dents from the school can visit others
schools in the county.
Kiambu Womens MP Anna Nyok-
abi said MPs from the area have
formed a caucus to address education
issues in the county.
President calls
for schools
exchange plan
Inter Public Universities Councils
Consultative Forum demands the
payment be effected not later than
May 30 this year. Payment to eligible
members of staff in JG 1-15 shall be
effected in full on a date not later than
May 30 2014, states the agreement.
Article 6 of the agreement signed
on March 12 stipulates that there shall
be no victimisation of either party and
no employee shall suffer loss of earn-
ings over the period of work stoppage.
Mukwaya accused the university vice
chancellors of holding irregular meet-
ings with the universities Senate
teams which he said have no mandate
in administrative, human resource
and nancial management.
Uasu National Secretary General
Musalia Edebe said they were at pains
explaining to members the delay in
payment offered by the Government.
We gave the VCs the benet of
doubt but now we are waiting for
them to act in the spirit and commit-
ment of this document, he said.
Page 11 Tuesday, May 20, 2014 / The Standard
Page 11 Tuesday, May 20, 2013 / The Standard
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1NbR No. Ro1L1 bSLRl1loN Sl1 VlSl1
bA1
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Complete 1ender documents may be viewed and obtained from the website www.isieIe.e.ke for lPLL. Any queries contact
the SuIy Lhaiu Mauaemeut Services beartmeut emces on or before 4.00 P.H on normal working days.
lnterested bidders should meet the following minimum mandatory requirement;
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2. 8id 8ond I% of 1ender Sum in form of 8ank 6uarantee from a reputable bank or approved insurance company
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5. Confdential 8usiness uestionnaire
6. 1ax Compliance, vA1/ PlN, Certifcate of Pegistration/lncorporation, Hinistry of water Pegistration and NCA
Pegistration Certifcate
7. Current valid Single 8usiness Permit
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1enderers or their representatives may attend and witness the tender opening. Late bids will be returned unopened.
1he security must be from established bank or approved insurance company and shall be valid for one hundred lifty (I50)
days from the opening date.
Prices quoted shall remain valid for une hundred 1wenty (I20) days from the opening date. Prequalifed Contractors are
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foR: LouN1Y SLR1ARY.
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KASNEB wishes to inform the candidates sitting for May 2014 examinations that their AUTHORITY
TO SIT EXAMINATION (TIMETABLES) have been dispatched through the Post Ofce. Candidates
may also download the same from KASNEB website (www.kasneb.or.ke).
Candidates are required to access their account on the student portal in order to download the
timetable as follows:
1. On the website click on the student login link then choose the student icon or proceed to click
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3. Provide the email address and password used when creating the account and click unlock to
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4. Select the Registration Details menu.
5. Access the Course Choice tab.
6. Select the examination from the dropdown box, click on the Yes checkbox and provide the
registration number without the prex (e.g. if your registration number is NAC/68148, provide
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7. Select the Examination Timetable menu to view your timetable and instructions to
candidates.
8. Click on print to print the pdf version or Send to email to send to your email address.
The timetable must be presented to the invigilators at each session of the examination. Please pay
attention and adhere to the INSTRUCTIONS TO CANDIDATES relating to the conduct of the
candidates during the examinations.
SECRETARY AND CHIEF EXECUTIVE
Tuesday, 20 May 2014
MAY 2014 EXAMINATION TIMETABLES
Background:
The KenGen Foundation was established in 2012 to drive and upscale the corporate social
investment programmes of the KenGen Company.
The KenGen Foundation seeks to identify, develop and package an eco lodge and a conference
facility within the lands owned by the sponsor Company. The rst of this development is proposed
to be situated at the 7-forks around Kamburu dam as its strategic focus.
The Foundation invites interested qualied candidate who can provide consultancy services as
stated.
The scope of service will consist but not limited to;
The development of a detailed feasibility study that looks at key market consideration for an
ecotourism lodge/conferencing facility project around Kamburu Dam area with a bed capacity of
between 50-100 people and conferencing facilities of up to 300.
i) Provide strategic guidance in respect to location and nature of development within the
Dam area.
ii) Carry out Demand analysis while bench making with similar projects elsewhere.
iii) Develop a concept plan paper with cost.
iv) Advice on best nancial sources to implement project
The EOI responses shall include details on the following as part of the statements of
qualications;
a) Understanding the assignment
b) Experience in similar assignments
c) Financial capabilities and commitment
d) Proposals on delivery methodology
Interested bidders must satisfy the following requirements (attach evidence to support the
following)
1. Bidders must provide their company prole , Certicate of Registration /Incorporation
and a valid tax compliance certicate
2. Eligible rms will be expected to provide proof of their capability and experience in doing
similar work in large organizations - provide three (3) references of similar work done in
the past ve years.
3. Be composed of a minimum of three consultants with a mix of appropriate expertise.
The team members should have -advanced degree from a recognized university in
Finance, Environment, economics, Land Economics, architecture or related eld.
Candidates who combine academic qualication and experience in more than one of
these disciplines will have an added advantage;-at least seven years of experience on
the relevant issues
4. Attach audited accounts for the last two years
5. This consultancy requires the services of competent individuals with analytical
competence and knowledgeable about development of lodges and conference facilities
in Kenya, and experience in developing strategy documents with nancial estimation at
acceptable standards with sustainable components.
6. Demonstrate experience in developing strategy/project documents of
international standard;--familiarity with the eco-tourism facilities and structural
development sector programmes; strong written and verbal communication skills;
organized and able to present ideas in a concise and logical format including proven
ability to summarize lengthy and complex information into short and simple language;
and uency in English.
Submission of proposal
Only Prequalied consultant(s)/rm will be required to develop a detailed proposal based on the
requirements and objectives dened in the Terms of Reference, including methodology timeframe
and budget (technical and nancial proposal in one enverlope). The bidder will be expected to start
immediately after the tender award and the Foundation will Prefer that the project must be
completed within a period of eight weeks (2) months from the commencement date.
A suitable consulting rm will be selected in accordance with the procedures set out in the
Standard Request for Proposal (RFP) 2007 edition for selection of consultants issued by the Public
Procurement Oversight Authority (PPOA) of the Government of Kenya (www.ppoa.go.ke)
4. EoI Submission
EOI in plain sealed envelope clear marked EOI for development of an ecotourism and
conferencing facility shall be submitted in one original and two copies to the address below, not
later than 1400 Hrs on May 30
th
, 2014.
Managing Trustee,
KenGen Foundation,
5
th
Floor, Stima Sacco building,
Kolobot Road, Parklands,
P. O. Box 47936, 00100
Nairobi, KENYA.
The documents will be opened on the same day in public at 1430 hrs at Stima plaza phase III
Executive Room 7
th
Floor,
KenGen Foundation reserves the right to accept or reject any or all applications without the
obligation to assign any reason for the decision.
CONSULTANCY FOR DEVELOPMENT OF AN ECOTOURISM
AND CONFERENCING FACILITY AT KAMBURU DAM AREA
EXPRESSION OF INTEREST:
Page 12 / NATIONAL: PARLIAMENT
Tuesday, May 20, 2014 / The Standard
BY ALPHONCE SHIUNDU
MPs yesterday asked security
chiefs to reveal the details of the
Sh12.3 billion deal that was awarded
to Safaricom for surveillance and
communication equipment.
The lawmakers sought assurances
from Interior co-ordination Cabinet
Secretary Joseph ole Lenku, his Prin-
cipal Secretary Mutea Iringo and the
Inspector General of Police David Ki-
maiyo that the deal between the Gov-
ernment and Kenyas largest mobile
service provider, Safaricom, was
above-board.
The Parliamentary Committee on
Administration and National Security
said the questions about the procure-
Security bosses told to explain Sh12.3b Safaricom deal
ment of the multibillion project have
to be addressed before it is imple-
mented.
The committee told Lenku, Iringo
and Kimaiyo, plus other senior of-
cers in the Interior docket that they
want all queries answered, so that the
matter does not get stuck in court the
same way the previous exercise was
stuck in court in a tussle between two
Chinese companies Huawei and
ZTE.
Are you sure we are on the safe
side? If it is an issue of single sourcing,
people are going to raise issues. Or
else we are going to be embroiled in
the same issues that have been in
court for the last two years. We need
these surveillance equipment like
yesterday, said the committee chair-
man Asman Kamama.
Video surveillance (CCTV), digital
radios, video conferencing system,
central command for the communi-
BY ALPHONCE SHIUNDU
Interior Cabinet Secretary Joseph
Ole Lenku, his Principal Secretary
Mutea Iringo and the Inspector Gen-
eral of Police David Kimaiyo yester-
day came face to face with the ugly
side of their ofcers, when an MP
gave them details of an attempted ex-
tortion and corruption.
Rongo MP Dalmas Otieno narrat-
ed how police ofcers arrested three
young men at the Kencom Bus Station
over the weekend, took them to Cen-
tral Police Station in Nairobi, and ex-
torted money, in exchange for their
freedom.
They were put in a police vehicle
together with suspected criminals.
When they reached the police station,
the ofcers reversed the vehicle. They
let the criminals go, but detained
these young men. They said they
wanted to book them for idling, said
the Rongo MP.
They told the young men that
they would be released if they paid
Sh2,000 each. Between them, the men
had Sh1,000. The police ofcer escort-
ed one of them to an automated teller
machine, where they withdrew
Sh5,000 to buy their freedom, Otieno
added.
POLICE ORDEAL
The arrested youths called the MP
and narrated their ordeal. The MP
told the security chiefs that he got in-
to his car and drove all the way to the
Central Police Station.
He called the young men back to
the station and they identied the of-
cers who had taken the money.
Otieno said he pleaded with the
Ofcer Commanding Station to disci-
pline his ofcers to make sure that the
vice was stopped.
However, when the MP called the
OCS to nd out if he had acted on the
errant ofcers, the OCS told him he
was in court.
I told him I will report him to the
minister, said Otieno as he looked at
Ole Lenku, Mr Iringo and Mr Kimaiyo,
at a meeting of the House Committee
on Administration and National Se-
curity.
These ofcers must be disci-
plined. I dont want them sacked, but
they must know that what they did is
worse than corruption. It is extor-
tion, the Rongo MP said.
This is very sad. It is a case where
I am innocent, yet the police arrest
me. I am driven with other criminals
to a police station where I should feel
safe, but then, I am extorted, Otieno
added.
When Lenku heard the ministers
story, anger was written all over his
face. They must be sacked! he
snarled. Otieno said sacking wont
help, because, it seemed corruption
was well entrenched in the police ser-
vice.
MP tells Kimaiyo,
Lenku, Iringo how
ofcers extorted
three men
per litre of fuel, this amount can only
provide seven litres per day for use by
the deputy county commissioners
and assistant county commissioners,
the trio told the parliamentary com-
mittee.
They added that the allocation of
Sh143 million to the divisional head-
quarters means that the 1,200 vehi-
cles in the police posts, stations and
divisions will have to make do with
just two litres of fuel a day.
This is grossly inadequate, the
security bosses noted in their brief
that is poised for the Budget and Ap-
propriations Committee, which will
have the nal say on the budget.
Kimaiyo was angry that the Na-
tional Treasury had reduced money
that had been agreed in the Cabinet
retreat in Nanyuki.
The National Authority for the
Campaign against Drug Abuse the
body mandated to ght illicit alcohol
is also in the red.
Waikenda said she needed Sh700
million for tamper-proof passports,
but her request was denied. She said
she wanted to hire 600 new employ-
ees, but the National Treasury gave
Sh50 million for 100 new staff.
She also said she wanted Sh150
million for a system to track foreign-
ers, but the Treasury mandarins re-
jected the whole idea.
The MPs were livid. They in turn
harassed the ofcial of the National
Treasury, senior assistant Director of
Budget Kasembeli Nasiuma, and told
him to explain why money was not
available when the country is under
siege.
WITHIN MEANS
Nasiuma told the MPs that the
budget resources were nite. We
must live within our means as a coun-
try. We cannot just print money. If in
the wisdom of Parliament, our distri-
bution of resources is not good
enough, well be guided with the po-
sition that you (MPs) take, just as we
have done before, said Nasiuma.
He reminded MPs that the budget-
Treasury blamed for cutting security
budget despite rising terror attacks
Security chiefs say
they had submitted
a budget of Sh146.8
billion which was cut
to Sh83.2 billion
BY ALPHONCE SHIUNDU
Top security chiefs yesterday
turned the heat on the National Trea-
sury over Sh63.6 billion shortfall in
their budget.
This comes at a time when securi-
ty threats in the country are at an all-
time high. The security chiefs said
they had submitted a budget of
Sh146.8 billion, but the National Trea-
sury had cut it to Sh83.2 billion.
Interior Cabinet Secretary Joseph
Ole Lenku, Principal Secretary Mutea
Iringo and Inspector General of Police
David Kimaiyo trooped to Continen-
tal House and told MPs that efforts in
ghting crime had oundered and the
situation was likely to get worse be-
cause of budget cuts.
The trio at the helm of the coun-
trys security machinery said they put
in requests for more money, but every
time their budgets are submitted, the
National Treasury reduces the alloca-
tions.
They said about 400 vehicles in the
ministry are grounded.
Lenku, Kimaiyo, plus Director of
Immigration Jane Waikenda, together
with the directors in charge of regis-
tration and disaster management, all
complained that they are under-
staffed, underfunded and unlikely to
deliver what they are expected to do.
We badly need your intervention
to see how we can ll this gap of gross
underfunding, said Lenku.
FUEL COST CUT
Lenku and Kimaiyo joined the
Chief Finance Ofcer at the State De-
partment of Interior in telling the
House committee on Administration
and National Security how the Na-
tional Treasury had cut the money for
fuel from Sh2.2 billion to Sh586 mil-
lion.
The 290 sub-counties (constituen-
cies) have an allocation of Sh97.6 mil-
lion for fuel. This translates to
Sh921.20 per sub-county per day. At
the prevailing average rate of Sh120
Rongo MP Dalmas Otieno
Interior Cabinet Secretary Joseph ole
Lenku
making process was now in the do-
main of the Legislature, and that the
National Treasurys job was to bake
the cake, and share it with the 47
county governments, the indepen-
dent commissions, the Legislature,
the Judiciary and the Executive.
Well be guided by members of
the August House on how to rework
the gures. Whatever you say will be
nal, Nasiuma told the MPs, as Len-
ku, Iringo and Kimaiyo looked on,
shaking their heads.
Dalmas Otieno (Rongo) was rat-
tled. Parliament does not set the ceil-
ings. You people at the National Trea-
sury do. The security sector has been
underfunded to a point where we now
have a disaster.
cation system and mapping system,
are part of the infrastructure that will
be provided to help keep Kenyans
safe. It will rst be implemented in
Nairobi and Mombasa.
Lenku told the MPs that the sur-
veillance and communication equip-
ment will also be installed in remote
areas to help curb cattle-rustling.
The Cabinet Secretary said Safari-
com had agreed to install 15 commu-
nication towers in Turkana, eight in
West Pokot and a yet to be determined
number in Samburu to help in com-
munication and surveillance of cattle
rustlers.
He also told MPs that the Kenya
Police Reservists will also be equipped
to help deal with the menace.
Dalmas Otieno: Parliament does not set the ceilings. You people at
the National Treasury do. The security sector has been underfunded
regularly to a point where we now have a disaster. You people are not
even awake to the changing needs (in the face of terror)
Joseph Ndiege: Tourists are being evacuated from hotels at the
coast. The hotels are left deserted. If you dont do anything else, please
make sure you give money to the Department of Interior
Asman Kamama: National Treasury Cabinet Secretary Henry Rotich
has to appear before the committee to make sure he gives a nal an-
swer on why there was little money allocated to security services
Kamama: In a weeks time, if the National Treasury does not give us a
response, then we are going to tell the country that you are conspirators
in the spiralling insecurity,
The Treasurys meagre allocation to the Interior Ministry was making
other Government departments pay more money, just to shore up secu-
rity services
Committee to make sure the security ministry secures more money for
its different departments
PARLIAMENT COMMITTEES TAKE ON TREASURY
ALLOCATION TO INTERIOR MINISTRY
We cant keep fghting
cattle rustlers using the
same methods that we have
been using for the last 50
years. It cannot be business
as usual. Committee Chairman
Asman Kamama
Page 13 Tuesday, May 20, 2014 / The Standard
Page 13 Tuesday, May 20, 2013 / The Standard
Page 14 / EDITORIALS
Tuesday, May 20, 2014 / The Standard
Make both Kenyans
and foreigners safe
The Standard is printed and published by the proprietors,
THE STANDARD GROUP
Newsdesk: 3222111
|
Fax: 2213108
Email: oped@standardmedia.co.ke
Group Managing Editor (Print): Kipkoech Tanui
Registered at the GPO as a newspaper.
It is time for building bridges, not erecting walls
WHAT OTHER MEDIA SAY...
T
he travel advisories issued against Kenya
illustrate the seriousness with which Western
powers treat security threats to their coun-
tries. The number of tourists who left the coastal town
of Mombasa within a single day amplifies the concern
felt by many people including Kenyan citizens.
At the same time, the President has castigated the
West for pressing the panic button yet terrorism is not
something unique to Kenya. He believes this is a
deliberate attempt by the West to sabotage the coun-
trys economy. On the other hand, the British govern-
ment has insisted this was because the security of their
citizens was more crucial than the economic loss their
exit occasioned. Neither of them is wrong.
Tourism is a leading foreign exchange earner for the
country, and dwindling revenues from the sector have
huge knock-on effects on the economy. Apart from
being an alternative revenue stream for the country
and creating employment, the sector helps keep the
shilling stable as it provides a steady flow of forex that
also checks inflation. So the presidents anger is
understandable.
Besides the advisories, the American Consulate in
Nairobi (one of the biggest in the region) has reduced
its staff to a skeleton. The UN offices at Gigiri also have
minimal staff. Both now have reinforced security.
The answer to this is not to chest-thump as the
President has done. True, we can look elsewhere for the
tourist numbers, but at what cost?
Making the country safe should not be done to
attract more tourists and make foreigners safe, but
rather the core duty of any government. After all,
majority of those who have died in the attacks that
precipitated the travel advisories are Kenyan citizens.
Simply put, Government must show that it values life
and property, whether Kenyan or foreign.
To the Western nations, terrorism, as rightly put by
the President, is not a Kenyan phenomenon. Issuing
travel advisories is akin to admitting that the schemers
of the attacks are winning and that is not true.
"#$% &'()( *+ ,'#$
Postal Address is P.O. Box 3384-40100, Kisumu
Phone Numbers: +254 - 057 2020395
Cell Phones: +254722 610707/+254717 524 087 or +254721 748534
Website: www.geoplanconsultants.co.ke
Email Address: geoplanconsultantsltd@gmail.com
or geoplanconsult@yahoo.co.uk
Ofce in Nairobis UN Complex, Gigiri. During
his stint at the UN, he worked in Namibia and
Botswana among other African countries where
he interacted with academia, practitioners and
policy makers of diverse backgrounds. He
is currently a researcher, consultant licensed
planner and environmental impact assessment
(EIA) lead expert at Mipango Institute in Nairobi
and teaches planning at University of Nairobi.
The Institute held two national conferences
in 2012 and 2013 where planners, county
and national government ofcials, scholars
and private sector discussed issues under the
theme of Planning under Devolved System
of Government in Kenya. It has reviewed its
Constitution with the new draft under discussion
before it adopted by members. The Institute has
also published its new publication, PLANNING
FUTURE.
KIP is a professional body of planners
incorporated in 1999 and registered under the
Societies Act. Membership of the Institute stand
at 546 members distributed as follows: 169
corporate members, 251 graduate members, 109
student members, 6 technicians and 7 associates.
However, the number of planners who are
registered by the Physical Planners Registration
Board (PPRB) as professionally competent is
173. The board has issued practice license to
83 or 48% of the registered physical planners
to provide planning services as consultant
planners in the fast growing Kenyan planning
industry. The other 90 or 52% registered physical
planners are employees of the National and
county governments, public corporations, non-
governmental organizations (NGOs) and other
development agencies and private companies.
KIP was formally launched on March 8, 2001
at the Nairobi Safari Club which Hon Joseph
Nyagah EGH, the then Minister for Lands
was the chief guest. The theme of the launch
conference was making Kenya a planning
society. Its overall objective is to promote
effective national, regional, urban and local
planning for efcient placement of projects and
programmes geared to promote productivity of
the economy as wells as socially and politically
responsive patterns of human settlements towards
realization of sustainable development in Kenya.
Goal: The goal of the Institute is to act as body
that gives the planning profession identity and
champion the positive role planning industry has
in change and development in Kenyan society as
it is happens in other parts of the world. Overall
Objective: KIP seek to promote professional
planning by providing a focal point for
promoting relevant ways of preparing urban and
rural communities plans, playing a critical role
in developing planning standards and regulations
in partnership with business and government.
This effort by KIP strife to inuence planning
at national level, level at which the six regional
development Authorities plan and operate, and
the newly introduced county planning. The
Institute also organizes appropriate forums
where its members learn new practices, exchange
experiences and nd common understanding on
issues, new concepts and techniques and methods
of planning. Business leaders and public ofcials
We and our consultancy rms of Licensed Members of the Kenya Institute of Planners congratulate the Chairman, Governing Council and all members of the Institute during this auspicious commemorative occasion as the Institute marks 15 years since it was formed.
Striving Towards Planned and Sustainable Environments
Real Plan Consultants
Physical Planning and Environment Consultants
St Ellis House (Former Cotts House)
4th Floor, Wabera Street,
P.O. Box 1555-00200
Nairobi
Tel: (020) 2214116
off. Cell: 0722-477500
E-mail: info@realplan.co.ke
also share their perspectives including concerns
and expectations of planners from these forums.
KIP Partners: The Institute is a member
of the Professional Society of East Africa
(APSEA), Africa Planning Association (APA),
East Africa Association of Planners (EAP), the
Commonwealth Association of Planners (CAP)
and the Global Planners Network (GPN). It is a
signatory of the Vancouver GPN Declaration of
2006 on effective Global planning. KIP maintains
close working relations with professional bodies
of planners in Africa and internationally. These
include the Tanzania Institute of Planners (TIP),
Uganda Institute of Physical Planners (UIPP),
Malawi Institute of Planners (MIP), Zambia
Institute of Planners (ZIP), Ghana Institute
of Planners (GIP), Town Planning Institute of
Nigeria (TPN), South African Planning Institute
(SAPI), American Planning Association (APA),
Canadian Institute of Planners (CIP), Royal
Town Planning Institute (RTPI ) of the UK,
Planning Institute of Australia (PIA), Malaysian
Institute of Planners (MIP), Singapore Institute
of Planners (SIP) among many others. Post-
2010 Constitution and Devolved Government
Dispensation: Kenya has been planning its
towns and rural settlements under The Physical
Planning Act (PPA), 1996 and the Physical
Planners Registration Act (PPRA), 1996 under
which the Physical Planners Registration Board
operates. The two old Acts are still in operation
even though Kenya has a new Constitution
2010, County Government Act and Urban Areas
and Cities Act for planning under devolved
government dispensation. The two old Acts
need urgent review in the light of changed
circumstances, in particular the adoption of
the new Kenya Constituion, the coming into
effect of the County Governments and the need
to conform to international good practices.
The review of the two Acts should seek to
consolidate the numerous other laws that touch
on different aspect of planning in one Planning
Act and Planners Registration Act in ways
that secure unied plannng and sychronized
policy functions of the national and county
governments, agencies and bodies that the two
governments would form as well as relevant
semi-autonomous public bodies such as the
National Land Commission. In this the Institute
and its members are committed to work with
other players for a smooth transition to devolved
system of government and the realization of
equity that would derive from sustainable
economic, social and cultural development;
nationally, in the counties and at the grassroots
in communities.
Centre for Urban and Regional Planning
Bruce House, 14
th
floor, Standard Street P.O Box 2908-00100 G.P.O Nairobi
Tel +254 (0) 20 2244463,
Website: www.curp.co.ke,
E-mail info@curp.or.ke
Tel+ 254 (0) 20 2244463, Website: www.curp.coke, E-mail info@curp.or.ke
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Page 57 Tuesday, May 20, 2014 / The Standard
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COAST ACCOMMODATION
E2/WHERE TO STAY
FIELD / Farm Sprayers
(On Highseas Sale) 1.300 Lt
100K 2.300 lT 140K 3.400
Lt 190K 4.500 Lt 200K
5.600 Lt 210K 6 800 lt
220K 7.600 Lt 475K 8 800
Lt 530K 9 Trailed 1000K Lt
550K 10.Trailed 2000K Lt
700K Numaan Traktor And
Farm Machi nery Li mi ted
0716555095 www. ol x.
co.ke
CONCRETE Pole Making
Machine. Contact Person: Mark
Yuan Phone No.:0719845977
Address: Godown No. 5
number 12470 Enterprise Road
Nairobi Email:nileblock2009@
gmail.com
QTJ4-40 Concrete Block
Maki ng machi ne Contact
Person: Mark Yuan Phone
No.:0719845977. Address:
Godown No. 5 number 12470
Enterpri se Road Nai robi
Email:nileblock2009@gmail.
com
CONTAINERS FOR SALE.
20FT@KSH.230,000 AND 40FT@
KSH 350,000 CALL;0728-866664,
EMAIL; sales@klogistics.biz
PERSONAL NOTICES
A9/LOST
LOSS of title No. LR 209/7364/2
in the name of CFC Stanbic Bank
Ltd.
LOST ti tl e deed Rui ru West
Bl ock 1 1210, owner James
Nj oroge.
A18/ASTROLOGY
POWERFUL lucky rings for business,
money, riches, career, true love, hap-
py marriage, etc. World & Africas top
anti-evil Astrologer. Instant success.
Dr.Santo 0705-480110.
DISC PLOUGHS MF And
Dama Brands 2 Disc 130K
3 Disc 170K 4 Disc,250K 5
Disc 300K Nardi L/D 250K
H/D 300k 3 Disc 0716555095.
( Noman Tractor And Farm
Equipments Ltd )
CONCRETE LIFTING
hoist made in italy, powered
by honda 6. 5 hp petrol
engine. 020-650581, 020-
5 5 1 9 1 3 , 0 7 3 3 7 8 5 1 3 7
& 0706014470. emai l :
bhattelectro@yahoo.com.
Page 58 / CLASSIFIEDS: PROPERTIES FOR SALE / TO LET Tuesday, May 20, 2014 / The Standard
OBI TUARI ES
Hotline Number: 0719-012-555 or Email: classiedads@standardmedia.co.ke
PERSONAL NOTICES
B5/HEALTH AND FITNESS
STRESS/emotions/lifestyle help.
0705-212787.
MOTOR VEHICLES
ACCESSORIES & CAR HIRE
H2/FOR SALE PRIVATE
IMPORT car cheaply with Lumhero
agencies 0721101890.
MERCEDES E240 for sale, en-
gine 2500cc at 2.3m. Call 0721-
97750/0705-042117 NB: install-
ments acceptable.
RAV4s, 02, 960k; 04, 995k; NZE,
04, 760k. 0715-593037.
H7/MOTOR VEHICLES FOR HIRE
CAR track @ 10k. 0723-022426.
H11/EXHAUST SYSTEMS
SETLAK galvanised exhaust, 2 yrs
written guarantee tted as-u-have
drinks. 552265, 0722-527924.
POSITIONS VACANT
I5/GENERAL
FREE housekeeping & all category
visa available in Gatar students &
business visa for Malaysia & Austra-
lia. Call 0788-328478, 0716-773030
visit us at Sonulux Bld, 8th r, suite
805, Moi Avenue Nbi.
URGENT, NGO req volunteers-good-
pay.SMS ur no. 0728674322
YOGHURT Co r q wor ker s
0707928283
COMMERCIAL
K1/SERVICES
WE repair all leaking tanks. Call
0710-566444.
L4/PROPERTIES TO LET
3BR next to Yaya, 80k. 0721-
846422.
AT SOUTH B, 1br studios & bedsit-
ters. 0714-538594, 0720-451423.
AT-REAL MGT. SERV. 0721-582227,
0733-881200. Westlands, Gen. Ma-
thenge Drive, 3 bedroom exclusive
apartment, m/ensuite, spacious, se-
cure, garden.
AT-REAL MGT. SERV. Chambers
Rd, Ngara, 2b/r excl. apts, spa-
cious, secure.
AT-REAL MGT. SERV. Kilimani, El-
geyo Marakwet Rd, 2 & 4 bedroom
exclusive apts, all ens, DSTV, s/pool,
generator.
AT-REAL MGT. SERV. Muthangari
Gardens, Lavington, 6 b/r exclusive
penthouses, spacious, m/ensuite,
s/pool, elec fence, borehole, gen-
erator, gym.
AT-REAL MGT. SERV. Riverside, 4
b/r exclusive maisonette, m/en-
suite, spacious, secure, dsq, gar-
den, parking.
AT-REAL MGT. SERV. Westlands,
Muthithi Rd, 4 b/r exclusive mai-
sonette, m/ensuite, spacious, se-
cure parking.
CHESKA: 4441983/7326/0722-
908214/0737-908213. Diamond
Park, 4br maisonette, sq, carport,
R: 60k. o.n.o.
CHESKA: Kile, 3br apt, ensut, sq,
R: 80k.
CHESKA: Kili, 3br apt, ensut, pool,
R: 90k.
CHESKA: W/lds, 3br apt, ensut, lift/
borehole, b/generator, R: 160k.
BROOKSIDE, 4br m/net + 2 sq, 110k.
0720-892977.
OFF Othaya Rd, self-contained
4bdr maisonettes, dsq, 140k. 0722-
730082.
SPRING Valley, Lower Kabete Rd,
5br + sq twin, Ksh 200,000. Call
0720-951863.
VALLEY Arcade, 3br new apt, se-
cure, gym, near Yaya, 70k. 0703-
575208.
W/LANDS, 3br apt, all ens. 0736-
635479.
WAIYAKI Way, 3br (furnished).
0736-635479.
WESTLANDS nr Parklands Bap-
tist Church, spacious 3bed apt
(master ensuite), 70,000 incl
service charge/2 parkings. 020-
2346499/0712-985981.
WESTLANDS, 1/2 bed apartment,
furnished/unfurnished. Tel. 0722-
446055, 0733-446055.
L9/PLOTS/LAND FOR SALE
ELEMENTAITA 40ac 5m/ac. 0722-
837457.
HORERIA & CO. Thika Road near
Mountain Mall, 0.5 acre plot, sewer,
Ksh 110,000,000. 2249410, 0701-
277100.
KISUMU, Riat Hills next to Raila
Foundati on, 1/4 Acre 1.75m
0707180294
LANGATA, 1 acre plots, ready
titles next to Gems Cambridge
School, Magadi Road, ideal for
homes/ flats, Shs 40m each. 0722-
961704.
LAVINGTON, 1.2ac Ksh 230m. 0722-
837457.
LUKENYA with ready titles. 0722-
724393.
MUTHAIGA 1.2ac 220m. 0722-
837457.
NYARI, ac, 25m-35m. 0722-
308195.
REDHILL/Limuru 15ac. 0722-
837457.
WAGA: 1.2 aC + hse, water, Kaburaini-
Naromoru, 1.1m cash. 2213022, 0701-
340967, info@wagaholdings.com
WAGA: 1 ac, 2nd row, Kangundo
Rd, 1.5m.
WAGA: 1 ac, Karen, Pepo Lane,
35m.
WAGA: 1.5 ac, Nanyuki-Rd opp. Air-
strip, 12m/ac cash.
WAGA: 1/8 ac, Kangundo Rd- Koma,
260k (2km frm rd).
WAGA: 1/8 ac, Langata, 13m + ap-
proved plans.
WAGA: 10 ac (sub-divided), Kisaju
touching rd, 8.5m/ac.
WAGA: 10 ac, Isinya - touching road,
9m/acre.
WAGA: 10 ac, Kangundo Rd/Njiru,
6m per acre.
WAGA: 10ac, Athi River nxt Pine
Park Est, 10m/ac.
WAGA: 12ac, Kisaju, 2.5km frm rd,
2.5m/acre.
WAGA: 2 ac, Ngara, 400m cash
buyer.
WAGA: 33ac, Msa Rd, opp. Devki,
21m/acre.
WAGA: 3ac touching Nanyuki-Timau
Rd, 12m/acre.
WAGA: 4.4ac, Sweetwaters, 5m
(fenced).
WAGA: 40 ac, Kisaju-2km frm Na-
manga Rd, 2m/ac.
WAGA: 4ac, Athi River, 3km frm
Msa Rd, 13m.
WAGA: 5 ac, Isinya opp. Umma Uni.
6m/acre.
WAGA: 5 ac, Kisaju - touching Na-
manga Rd, 6m/ac.
WAGA: 50 ac, ex-Lewa, 1m per
acre, cash.
WAGA: 5ac, Karen nr Resurrection
Gdn, 22m/ac.
WAGA: 84ac, Kitengela touching
Namanga Rd, 12m/ac.
WANGIGE KibIku, plot 100 x 100
with stone fence, borehole water and
electricity, 7m neg. 0707-149440.
L10/PREMISES/OFFICES TO LET
AT-REAL MGT. SERV. 0721-582227,
0733-881200. C.B.D. Twiga Tow-
ers, Muranga Rd, various ofce
spaces available, lift, very secure
& exclusive.
AT-REAL MGT. SERV. 4th Parklands,
exclusive ofces, 1,195 & 1,450 sq. ft.
Lift, generator, secure parking.
GODOWNS 5-10,000sf Msa Rd. 0722-
204686.
MUTHAIGA shopping centre res-
taurant space available oriental.
0722-837457.
MUTHAIGA shopping centre various
ofce premises. 0722-837457.
WAIYAKI Way, 6br, 1 acre, 500k.
0736-635479.
WESTLANDS, professional ofce,
1,000 sq. ft, self-contained with sep-
arate WC/kitchen, ideal for doctors,
accountants/surveyors/consultants,
80,000/= pm. 0712-985981/020-
2346499.
L11/PREMISES/OFFICES FOR SALE
AT-REAL MGT. SERV. 0721-582227,
0733-881200. Lunga Lunga Rd, In-
dustrial Area, prime property of
exclusive 4 godowns, 48,000 sq. ft.
on 0.6 acres.
AT-REAL MGT. SERV. C.B.D, prime
property available, 5 storey commer-
cial building with shops, basement &
ofces, parking, lifts exclusive.
RESIDENTIAL & BUSINESS
PROPERTIES
L2/PROPERTIES FOR SALE
NAIROBI HOMES (MSA) LTD. 0722
565888, 041-2226090. Bamburi
near Braeburn School,1/8 acre prime
residential plot @ Ksh. 2.5m.
NAIROBI HOMES (MSA) LTD.
0722565888, 0412226090. Bam-
buri- Vescon 1 3 br bungalow m/en-
suite with secure parking & security
@ Kshs 8.5m.
NAIROBI HOMES (MSA) LTD.
0722565888, 0412226090. Kiembe-
ni Estate 1 br house @ Kshs 1.4m.
NAIROBI HOMES (MSA) LTD.
0722565888, 0412226090. Nyali-
Links Rd acre prime residential
plot. Details on application.
NAIROBI HOMES (MSA) LTD.
0722565888, 0412226090. Shanzu
acre prime residential plot. De-
tails on application.
NYALI behind Nyali Barrack, 1.7
acres, vacant, 85m p/a. Call 0720-
951863.
L5/PROPERTIES TO LET
NAIROBI HOMES ( MSA) LTD.
0722565888, 0786565001. Mko-
mani 1 br apartment fully tiled @
Kshs 12,000/=.
NAIROBI HOMES (MSA) LTD.
0722565888, 041-2226090. Bam-
buri Beach 2 br beach apartment
with access to the beach, secure
parking & 24 hrs security @ Kshs
40,000/=.
NAIROBI HOMES (MSA) LTD.
0722565888, 041-2226090. Mi-
kindani 2 br apartment @ Kshs
12,000/=.
NAIROBI HOMES (MSA) LTD.
0722565888, 041-2226090. Nyali 3
br bungalow m/ensuite with secure
parking @ Kshs 35,000/=.
NAIROBI HOMES (MSA) LTD.
0722565888, 0412226090. Mbaraki
open yard. Details on application.
NAIROBI HOMES (MSA) LTD.
0722565888, 0786565001- of-
ce space in a modern prestigious
building within CBD. Details on ap-
plication.
NAIROBI HOMES (MSA) LTD.
0722565888, 0786565001. Bedsit-
ter with secure parking & security
@ Kshs 12,000/=.
NAIROBI HOMES (MSA) LTD.
0722565888, 0786565001. Nyali
2br apartment m/ensuite newly with
secure parking & 24 hrs security @
Kshs 45,000/=.
NAIROBI HOMES (MSA) LTD.
0722565888, 0786565001. Nyali-
Beach Rd 4 br maisonette with sq,
guest wing, secure parking & gar-
den @ Kshs 120,000/=.
NAIROBI HOMES [MSA} LTD.
0722565888, 0786565001. Bamburi
(Vescon II) -3br bungalow m/ensuite
with secure parking & 24 hrs secu-
rity @ Kshs 35,000/=
NAIROBI HOMES[MSA] LTD.
0722565888, 041-2226090. Bam-
buri- 2 br apartment m/ensuite with
secure parking @ Kshs 20,000/=.
L9/PLOTS/LAND FOR SALE
KIKAMBALA 6br 1 ac 20m
0722867672.
KILIFI BOFA, 1/8 pl ot 2m.
0722867672.
KILIFI Mrimani 2ac seaview 2m.
0722867672.
KILIFI opp Tuskys 1/8 2.5m.
0722867672.
KI TEGELA 2br f l at 2. 5m.
0722867672.
RESIDENTIAL & BUSINESS
PROPERTIES
L1/PROPERTIES FOR SALE
AT-REAL MGT. SERV. 0721-582227,
0733-881200. Muringa Rd, Kilimani,
3 b/r exclusive apt, dsq, m/ensuite,
s/pool, elec. Fence, parking, secure
garden.
AT-REAL MGT. SERV. Hillview, 4b/r
exclusive houses, all ensuite, dsq,
elec fence, garden, spacious se-
cure.
CHESKA: 4441983/7326/0722-
908214/0737-908213. Kili, 3br apt,
sq, P: 18m. o.n.o.
CHESKA: Buru Ph 4, 4br maiso, P:
9m. o.n.o.
CHESKA: Kile, 3br apt, s/pool, P:
15.5m o.n.o.
CHESKA: Riara, 3br apt, ensut, b/
hole, gazebo, P: 14m.
CHESKA: Westlds, 600sq. ft. of-
ce spa.
D/PRITT, 3br, ensuit, 15.255m. 0721-
846422.
DAM, off Langata Rd, 4br + sq.
0736-635479.
DONHOLM, r/about. 3br, 9m. 0733-
438297.
KOMAROCK Phase 3, 3br 6m. 0733-
438297.
MUTHAIGA 4bed 1/2ac Kshs 120m.
0722-837457.
OFF Enterprise Rd, godowns. Tel.
0727-300450/0786-300450.
RUNDA 1ac 6bed Ksh 130m. 0722-
837457.
COAST
PERSONAL NOTICES
A22/NOTICES
UNDER INSTRUCTIONS received
from our principals we shall sale
by auction under mentioned motor
vehicle at the yard of Alibaba Mo-
tors Ltd. Debt or VS Creditor Nis-
san Wing Road KBQ 639Y.
F1/FURNITURE
ANTIQUE furniture ! Teak / Mvule
wood ! @Khimjis tel 0733767070
A great soul serves everyone
all the time.
A great soul never dies.
It brings us together
again and again.
- Maya Angelou
FeverPitch
Tuesday, May 20, 2014
6 Pages of
Sizzling
Sports
Coverage!
STANDARD
Blogs, archives, reader
forums and more:
www.standardmedia.
co.ke/feverpitch
FeverBriefs
TENNIS: Azarenka out of
French Open with injury
World number ve Victoria
Azarenka has withdrawn from
the French Open as she continues
to recover from a foot injury that
forced her earlier withdrawals
from tournaments in Doha,
Miami, Madrid and Rome.
Unfortunately I will not be able
to compete in Roland Garros this
year, the two-time Australian
Open champion wrote on her
Twitter page. Working hard on
my recovery and getting back on
court. Azarenka has battled an
injury to her left foot for more
than two months. The French
Open begins on Sunday and runs
until June 8. Reuters
CRICKET: Hathurusinghe
to coach Bangladesh
Chandika Hathurusinghe will
leave his post as coach of the
Sydney Thunder Twenty20 team
to take up the head coaching
role with Bangladesh, Cricket
NSW said on Monday. The 45-
year-old Sri Lankan, who took
charge of Thunder last season,
has been offered the chance
to coach at full international
level, after previously being
an assistant coach of the Sri
Lankan side. Hathurusinghe
took over the acting head coach
role in December 2012, when
Anthony Stuart was released.
AFP
By ERICK OCHIENG
Kenya Sevens skipper Andrew
Amonde is among the three top play-
ers who have earned a call up to bol-
ster the Kenya 15s squad, the Tusker
Simba XVs, ahead of the World Cup
qualiers in Madagascar.
Kenya 15s team manager Wangila
Simiyu noted that Amonde will be
instrumental in the teams campaign
due to his leadership abilities.
He is one player who has the po-
tential to unite the squad; his pres-
ence on the team can never be
doubted, said Simiyu, who is help-
ing the squad of 30 step up training
in the Tusker training camp at the
Ruaraka grounds in Nairobi.
Other notable Kenya Sevens play-
ers who have been called up are
France-based William Ambaka and
Oscar Ouma who are expected to
play a vital role in the qualiers.
The team is set to face Portugal, a
formidable team ranking 24th in the
world, on June 7.
The match will test the teams re-
silience and preparedness ahead of
the World Cup qualiers that are
slated for July.
The Portugal match will be a
clear indicator for us on whether we
are on the right track. It will expose
the loose ends, which we will need to
strengthen before we leave for Mad-
agascar, said Simiyu.
The national 15s team recently
returned from a two-month tour of
South Africa, having featured in the
prestigious Vodacom Cup tourna-
ment.
The South Africa training camp
was made a success after generous
support from the South African Rug-
by Union.
In addition, Michael Shamia, Ke-
nyas strengthening and condition-
ing coach, has returned from three
weeks of intensive training at the
world renowned Stellenbosch Acad-
emy of Sport in South Africa and is
expected to pass on to the team the
skills acquired from his trip.
The three will be a great addi-
tion, especially against the likes of
Namibia, Zimbabwe and Madagas-
car, the three teams that Kenya will
be facing in the nal round of the
World Cup qualiers in Madagas-
car, said Simiyu.
South Africa was a stepping
stone for the team and it showed us
where our strengths and weakness
lay.
This test match will be a good
platform to showcase our improve-
ments, he added.
eoyugi@standardmedia.co.ke
Ambaka and Ouma also named in
team for World Cup qualiers
BASKETBALL: Pacers pull
away from Heat 107-96
Paul George scored 24 points,
David West had 19, and the
Indiana Pacers protected their
home court with a 107-96 victory
over the Miami Heat on Sunday
to take a 1-0 lead in the Eastern
Conference nals. Indiana led
wire-to-wire and never even gave
the Heat a chance to tie the score
after starting the game with a
5-0 lead. Game two is Tuesday
in Indiana. The home team has
won all ve meetings this season.
Dwyane Wade scored 27 points
and LeBron James had 25 for
the two-time defending NBA
champions, who lost for only the
second time in 10 playoff games.
Indiana extended the lead to 19 in
the third and Miami couldnt get
closer than nine. AP
Kenyas Andrew Amonde outpaces
South Africas Chris Dry during the
Las Vegas Sevens World Series.
Amonde has been named as part of
the Kenya 15s team for the World
Cup qualiers. [PHOTO:AFP]
AMONDE GETS
15s CALL UP
Page 60 / FEVERPITCH Tuesday, May 20, 2014 / The Standard
African teams will
make impact - Etoo
YAOUNDE
African nations have the
ability to be a competitive
force at next months World
Cup in Brazil despite not get-
ting the respect they deserve,
Cameroon striker Samuel
Etoo said.
African teams have often
struggled at World Cups, with
Cameroon becoming the
rst side from the continent
to reach the quarter-nals in
1990.
Senegal and Ghana have
since matched that feat and
Etoo believes the improving
quality of players like Ivory
Coast midelder Yaya Toure
means the ve African na-
tions can make a major im-
pact in Brazil.
People think Africa are
just there for the show,
Etoo, who is in line to play in
his fourth World Cup nals,
told africanfootball.com.
It is because football
leaders dont respect us that
our opponents dont respect
us. Africa must ght to get as
far as possible and why not
win the World Cup. Look at
the main European clubs
where a lot of Africans are
shining. Take Manchester
City as an example, and look
at the goals scored by Yaya
Toure. If it was (Lionel) Mes-
si, we will be talking about it
for three years.
Cameroon have been
handed a difcult World Cup
draw and will play Croatia,
Mexico and hosts Brazil in
Group A. But Etoo, who has
made 116 appearances for
Cameroon and scored 55
goals, is relishing the pros-
pect of meeting much-fan-
cied Brazil side.
I have never been afraid,
he added. If you are scared,
dont become a football play-
er. It is going to be difcult,
for sure, but in football ev-
erything is possible. We will
have our chances, and we
need to take them.
The 33-year-old Etoo
looks to be on the hunt for a
new club after his contract at
Chelsea expired, but the for-
mer Barcelona striker has
not lost his hunger for the
game and is adamant he will
be good enough to play at
the next two World Cups.
Some believe I am going
to retire in the United States
or in the Middle East, added
Etoo, who scored 12 goals
for Chelsea this season.
I am going to go to this
World Cup and to the next
one when I will be 37. Some
did it at 42, so I can still play
in two more World Cups.
Cameroon, Ghana, Nige-
ria, Algeria and Ivory Coast
are the ve African teams
who have qualied for this
years World Cup. Reuters
APPIAH: I AM MY OWN MAN
Ghanas Asamoah Gyan runs with the ball during a training session northeast of Franceville in
February. [PHOTO:REUTERS]
Cameroon striker Samuel Etoo.
Cape Verdes coach Lucio Antunes (left) with Ghanas coach
James Kwesi Appiah during the African Cup of Nations 2013.
ACCRA
Ghana Black Stars coach
James Kwesi Appiah will call
the shots at the Fifa World
Cup in Brazil for the rst
time and he has insisted he
will do it his own way.
The 53-year-old former
international defender
made history when he be-
came the rst local coach to
guide Ghana to the World
Cup last year.
Since I took over the job,
I have been my own man. If
you let someone inuence
your decision, they wont re-
spect you, said Appiah, who
was an assistant to Serbian
Milovan Rajevac when Gha-
na reached the quarter--
nals at the 2010 World Cup.
You do things your own
way when in charge of the
team and if they dont work
out you become responsible
for the consequences. If they
do, you take the honours.
Appiahs rst test as boss
after being appointed in
April 2012 was the 2013 CAF
Africa Cup of Nations in
South Africa. The highly fan-
cied Black Stars were
stopped in the semi-nals
by Burkina Faso.
TAKE POSITIVES
The coach insists there
were positive aspects to the
teams performance in the
tournament.
For me, I have never re-
gretted any step I have tak-
en. The main reason (why
we did not win) being many
of the players we took to the
Nations Cup were young
and we were building the
team, he reasoned.
Saying that, any coach
goes into a competition to
win it and I dont think we
were disgraced at the com-
petition. We came out of the
competition with a lot of
players who had played a
tournament for the rst time
and could help us in the fu-
ture.
Ghana put behind their
exit from the Nations Cup to
qualify for the 2014 World
Cup with a convincing 7-3
aggregate thumping of
Egypt.
Former Black Stars skip-
per Stephen Appiah said the
former Asante Kotoko de-
fender is the man to lead the
country to greater glory in
Brazil.
Over the period his team
(players) have shown a lot of
commitment to him, he
said. I think it is a good sign
which will lead to many
more successes. There is
more motivation in the
team. This is a group lead-
er.
In the Brazil 2014 World
Cup, the four-time African
champions are drawn
against Germany, Portugal
and USA in Group G.
Ghana reached the round
of 16 on their debut at the
2006 World Cup in Germany
and four years ago in South
Africa, they equalled the
best African performance by
getting to the quarter--
nals.
INFERIORITY COMPLEX
Appiah, a defensive mid-
elder who captained Gha-
na during his ve-year stint
with the national team, said
his team will not suffer any
inferiority complex against
his fancied rivals.
We play Germany, USA
and Portugal in our group,
but we did get this far and
we cant underrate or over-
rate any team, the game has
come of age and its any
mans game, he said.
All teams in our group
Black Stars
coach says
he will call
the shots in
Brazil
23
DAYS TO GO
are strong, but we cant fear
them because our qualica-
tion demonstrates our abil-
ity and potential. If you have
qualied for the World Cup
and you fear your oppo-
nents, then you might as
well not go for the competi-
tion, he said.
AFP
FEVERPITCH / Page 61 Tuesday, May 20, 2014 / The Standard
FastTrack
BRUSSELS: Belgium to
nd stand-in keeper
Belgium coach Marc Wilmots
has been forced to call up yet
another reserve goalkeeper
after Anderlecht number one
Silvio Proto broke his arm in
the nal match of the Belgian
league season on Sunday.
Wilmots said in a tweet that
he would add Sammy Bossut,
28, of Belgian side Zulte
Waregem to his 24-man squad
although Bossut could nd
himself cut from the nal 23
in two weeks time. Chelseas
Thibaut Courtois, loaned out
to Atletico Madrid for the past
three seasons, is Belgiums
clear number one, followed by
Liverpools Simon Mignolet.
Reuters
SAO PAULO: Brazil hold
nal stadium tests
Brazilian organisers
acknowledged problems but
expressed satisfaction with
the nal two stadium tests
for the World Cup on Sunday,
including one at the troubled
Sao Paulo arena that hosts
the tournament opening game
in a few weeks. Brazilian
league matches were played to
inaugurate Itaquerao stadium
in Sao Paulo and Arena
Pantanal in the western city of
Cuiaba. Organisers said there
were problems at both venues,
including a leaking roof at
Itaquerao and a eld invasion
by a fan at Arena Pantanal.
But no major setbacks were
reported. AP
BUENOS AIRES: Little
Witch Veron retires
Former Argentina midelder
Juan Sebastian Veron retired
for the second time on Sunday
at the age of 39, bowing out
with a 2-1 loss for boyhood
club Estudiantes but with no
regrets from a career that
yielded silverware across
the globe. Veron came out of
retirement last year to play
another season in Argentinas
top ight, having already taken
a role as a sporting director
at the club where his father
Juan Ramon was known as La
Bruja - The Witch - for his
spellbinding runs on the left
wing in the 1960s. Reuters
A Brazil fan dressed in
the likeness of coach
Luiz Felipe Scolari,
wearing a fake nose,
holds a replica of the
Fifa World Cup trophy
in Rio de Janeiro.
[PHOTO:AP]
Steve Mandanda ruled out of
French team over neck injury
PARIS
If the TV commercials pig-
gybacking on the World Cup
are to be believed, watching a
football match is fun, healthy
and sociable.
For hundreds of millions of
fans, say experts, the World
Cup will be a life-afrming -
esta but for others it will be
unhealthy, painful or even le-
thal. Statistics show that foot-
balls great parties are typical-
ly accompanied by a surge in
heart attacks, suicide, depres-
sion, assaults, road accidents,
binge-drinking and pigging
out on artery-clogging, waist-
line-expanding junk food.
The biggest risk comes
from emotional stress which
builds up during the match,
said Jean-Francois Toussaint,
director of Frances Institute
of Sport Biomedical Research
and Epidemiology (IRMES).
The risk is naturally greater
when a fans team loses rather
than when it wins because the
cumulative stress is nega-
tive.
Investigators in the south-
ern Germany city of Munich
found that local hospital ad-
missions for heart attacks or
palpitations rose 266 percent
on days when the national
team were playing in the 2006
World Cup which was hosted
by the Germans.
Researchers at the Univer-
sity of Birmingham in central
England even recommended
that penalty shootouts be
banned on public health
grounds after discovering
that the tally of heart attacks
in Britain rose by a quarter on
the day England lost on kicks
against historic rival Argenti-
na in the 1998 tournament.
Mitroglou makes Greece nal squad despite injury
ATHENS
Fulham striker Kostas
Mitroglou made Greeces -
nal 23-man World Cup squad
on Monday despite a roller
coaster season.
Mitroglou scored three of
Greeces four goals in their
aggregate 4-2 win over Ro-
mania in a World Cup quali-
fying playoff in November.
He scored a series of hat-
tricks for Olympiakos, in-
cluding in the Champions
League, at the start of sea-
son, then missed a month
through injury, before sign-
ing for Fulham.
Mitroglou struggled with
a knee injury and form at the
London side who were rele-
gated from the English Pre-
mier League.
The only criterion in my
selections was the players
who I chose to make me feel
safe both in the technical
sector and in their physical
state, said Greece coach
Fernando Santos.
We noticed in the last
matches that Mitroglou with
Fulham played 30 minutes
and I considered that he can
help the team, Santos said.
Santos also brought back
Verona defender Vangelis
Moras after three years out of
the national squad that starts
the World Cup in Group C
against Colombia, Ivory
Coast and Japan.
He has had a very good
season with his team and
seems to be in very good
GREECE TEAM
Goalkeepers: Orestis Karnezis
(Granada), Panaglotis Glykos (PAOK),
Stefanos Kapino (Panathinaikos).
Defenders: Kostas Manolas, Giannis
Maniatis, Jose Holebas (all Olympiakos),
Sokratis Papastathopoulos (Borussia
Dortmund), Giorgios Tzavellas (PAOK),
Loukas Vyntra (Levante), Vasilis
Torosidis (Roma), Vangelis Moras (Hellas
Verona). Midelders: Alexandros
Tziolis (Kayserispor), Andreas Samaris
(Olympiakos), Kostas Katsouranis (PAOK),
Giorgos Karagounis (Fulham), Panagiotis
Tachtsidis (Torino), Ioannis Fetfatzidis
(Genoa), Lazaros Christodoulopoulos
(Bologna), Panagiotis Kone (Bologna).
Forwards: Dimitris Salpingidis (PAOK),
Giorgios Samaras (Celtic), Konstantinos
Mitroglou (Fulham), Theofanis Gekas
(Konyaspor)
AND GHANA WILL EXCEL
Greece team poses prior to the start of a World Cup Group G
qualifying match against Latvia in Athens. [PHOTO: AP]
23
DAYS TO GO
World Cup
fans at risk
from footie
mania
Frances goalkeeper Steve
Mandanda.
PARIS
Second-choice goalkeep-
er Steve Mandanda (pictured
right) has been ruled out of
the World Cup after cracking
a vertebra in his neck playing
for Olympique Marseille on
Saturday.
Mandanda was hit in the
face by Mustapha Yatabares
knee during OMs 1-0 win
against En Avant Guingamp
in their nal Ligue 1 xture.
OM doctor Christophe
Baudot told the clubs web-
site (www.om.net) on Sun-
day: Steve Mandanda is suf-
fering from a crack in his rst
cervical vertebra and from a
cervical sprain.
It will require wearing a
neck brace for three weeks
and the same amount of time
in physiotherapy.
Mandanda conrmed his
withdrawal on his Twitter
feed. It is with great sadness
that I announce that I will
not be able to take part in the
World Cup, he said.
Mandanda, who has 16
caps, is number two behind
captain Hugo Lloris.
He has been replaced by
St Etiennes Stephane Rufer,
the French federation said in
a statement.
Coach Didier Deschamps
has not replaced Rufer in
the list of players on stand-
by.
The World Cup nals be-
gin on June 12. France are in
Group E with Ecuador, Swit-
zerland and Honduras, who
they face in their opener on
June 15. Reuters
condition. He meets the re-
quirements I have for this
mission, Santos said. AFP
Page 62 / FEVERPITCH Tuesday, May 20, 2014 / The Standard
Safaricom Head of Marketing Rita Okuthe (centre), Athletics
Kenya Vice President David Okeyo (right), head coach Sammy
Rono (left) with athletes Eunice Sum, Janeth Jepkosgei, Norah
Jeruto and Mark Mutai during the send-off luncheon, yesterday.
[PHOTO: JENNIFER WACHIE / STANDARD]
Manchester United hand Dutchman 3-year
contract to manage former champions
LONDON
Dutchman Louis van Gaal
(pictured above) was named
as Manchester Uniteds new
manager, with Ryan Giggs as
his assistant, as the Premier
League club issued a statement
conrming the worst-kept se-
cret in the game yesterday.
Former Ajax Amsterdam,
Barcelona and Bayern Mu-
nich coach Van Gaal, who will
lead Netherlands at the World
Cup next month, has agreed
a three-year contract, United
said.
Giggs, the clubs record ap-
pearance maker, took charge
of Uniteds nal four Premier
League of the season following
the sacking of David Moyes.
Van Gaal, 62 has won do-
mestic titles and domestic
cups in three countries, as well
as the Champions League with
Ajax and the UEFA Cup.
In Louis van Gaal, we have
secured the services of one of
the outstanding managers in
the game today, United execu-
tive vice-chairman Ed Wood-
ward said in the statement.
He has achieved many
things in his career to date
and Old Trafford provides him
with a tting stage on which to
By ERICK OCHIENG
Gold medallists at the
forthcoming World Relays in
Bahamas will each get Sh1
million from mobile tele-
phone provider, Safaricom.
Safaricoms Marketing Di-
rector Rita Okuthe announced
a reward of Sh600,000 for ev-
ery silver and Sh400,000 for
every bronze won by Kenyan
teams in Nassau.
We will give a further Sh1
million for every record bro-
ken there, said Okuthe, who
rewarded each of the 28 ath-
letes and travelling ofcials
with airtime worth Sh10,000.
Team Kenya captain Mark
Mutai says the countrys tar-
get is to make it to the nals
and win, especially in the
4x400m category.
The World Relay Champi-
onships is slated for this week-
end in Nassau, Bahamas.
Our aim is to qualify for
the Rio 2016 Olympics and the
World Championships next
year in China, soft-spoken
Mutai told FeverPitch at the
send-off luncheon organised
by Safaricom in Nairobi yes-
terday.
Inspired by the above
pledges, Mutai, the 2010 Afri-
can Athletics champion said
he has a good team in his cat-
egory which should propel Ke-
nya to the gold in Bahamas.
I can say my teammates
are strong and focussed. We
have been working on how
we are going to oor other na-
tions, says the reigning 400m
Commonwealth champion.
Others in the Kenyas
4x400m mens relay team are
Boniface Mucheru, Alex Sam-
pau and Solomon Buoga, who
said they are all building a
game plan to win.
We are targeting the nals
to qualify automatically for
China next year. We want to
be part of the team that will be
making history at the inaugu-
ral world relays, said Buoga.
VAN GAAL AT MAN U
Big cash rewards await relays medallists
write new chapters in the Man-
chester United story.
Everyone is very excited
about this new phase in the
clubs history. His track record
of success in winning leagues
and cups across Europe
throughout his career makes
him the perfect choice for us.
Im delighted that Louis
has chosen Ryan as his assis-
tant. Ryans association with
the club spans over two de-
cades and his knowledge and
stature will be of great use to
Louis.
FANTASTIC OPPORTUNITY
In addition, this is a fan-
tastic opportunity for Ryan
to learn his trade alongside a
world class manager whose
attacking instincts and belief
in youth are tailor-made for
Manchester United.
Van Gaal will also bring
Netherlands goalkeeping
coach Frans Hoek and scout-
ing specialist Marcel Bout to
the club as assistant coaches.
It was always a wish for me
to work in the Premier League.
To work as a manager for Man-
chester United, the biggest
club in the world, makes me
very proud, said Van Gaal.
This club has big ambi-
tions; I too have big ambitions.
Together Im sure we will make
history.
United, English champi-
ons on 20 occasions, nished
seventh in the Premier League
and will miss out on European
football next season.
Moyes, who replaced the
retired Alex Ferguson, was
sacked last month after 10
troubled months in the Old
Trafford hotseat.
Cross city rivals Manchester
City have won the EPL with
Liverpool and Chelsea coming
second and third respectively.
Arsenal, Everton and Tot-
tenham Hotspur all nished
ahead of United.
FEVERPITCH / Page 63 Tuesday, May 20, 2014 / The Standard
Harambee Stars coach Adel Amrouche during
the match at Nyayo National Stadium on
Sunday. [PHOTO: DENNIS OKEYO / STANDARD]
build on it for a better re-
sult in the return match.
We have to be grateful
for the one goal. In foot-
ball, what is important is
to be able to score even
a single goal. There is no
knowing what may hap-
pen in the return match.
We may score four
times and then concede
ve goals.
Our focus now is to
build on this victory and
also have more friendly
matches in our quest to
establish a strong side.
Football authorities
need to work on ensuring
we have more build up
xtures so that the play-
ers can get used to each
other, he said.
Wanyama is positive
that Stars will make it
through to the next round
of the qualiers where ei-
ther Lesotho or Liberia is
will be their rivals.
The players are deter-
mined to work hard away.
We know that our oppo-
nents will open up their
game and not defend as
they did on Sunday.
This will create more
chances for us to score
goals, he said.
Amrouche admit-
ted that the luck of build
up matches before the
knock-out xture affected
their performance, but
was nonetheless delight-
ed by the home win.
SHORT NOTICE
We did not play any
build-up xture and also
had to bring in some new
players into the team at
short notice.
Overall, we are happy
with the result and that is
what is important at this
time, he said.
Amrouche reiterated
the fact that Comoros will
be no push-overs in the
return match after the
strong performance they
put up on Sunday.
Before this, I had
warned my players that
there are no longer min-
nows in African football.
All teams on the con-
tinent are equal and in the
case of our opponents, the
fact that they have a good
number of their players in
Europe gives them a slight
advantage.
We are ready to go
and work hard to pick the
results we need to make it
to the next round, he told
reporters.
His Comoros counter-
part said, Amir Abou, said
they had picked some
positives from the loss
which they hope to turn
into a win.
In football, when you
make a mistake, you pay
for it and as a team this is
what we have learnt from
this loss.
Kenya got only one
chance and they benet-
ted from it. We know what
needs to be done in the re-
turn xture and hopefully
we can do it and qualify,
he said.
BEST PLAYERS
Belgium-based Lom-
mel United midelder Jo-
hanna Omolo gave Stars
the much-needed goal at
home, watched by a huge
crowd who cheered the
home team throughout.
Stars elded their best
players, including Wanya-
ma, Italy-based MacDon-
ald Mariga and France-
based Dennis Oliech.
Their presence made
fans roar in support,
which helped the hosts to
dominate the game.
Continued From P64
AFC Leopards unveil new Dutch coach Hendrik De Jongh
BY GILBERT WANDERA
After months of waiting
and speculation, AFC Leop-
ards have nally unveiled a
new head coach.
Dutchman Pieter Hen-
drik De Jongh (pictured) has
signed a one year deal worth
Sh350,000 per month to han-
dle the struggling GOtv shield
champions.
Speaking when he accepted
to take over, De Jongh prom-
ised to turn around the for-
tunes of the club and declared
he has what it takes to do just
that.
He, however, cautioned
against rushing him, insisting
that it will take time to bring
desired results.
I understand that AFC
Leopards is a big club with
huge expectations. But I am
used to this and there should
be no problem doing it here.
However, this will not hap-
pen overnight and we need
time. It will take two or three
months before we see result
trickling in, he told journalists
and supporters who witnessed
the occasion at the Nyayo Na-
tional Stadium.
Later, the new tactician ad-
dressed the players and em-
phasised on the importance of
discipline and hard work.
There is need for you to
work hard and ght for the
team. Discipline is also key to
success, he said.
Club chairman Allan Kasa-
vuli said the deal will be re-
newed based on performance
and expressed the clubs con-
dence in the Dutchmans abil-
ity to perform.
NECESSARY SUPPORT
He asked fans to be patient
with the new man and accord
him all the necessary support
he requires to succeed.
We have agreed on a one
year contract with the coach
and it will be renewable based
on performance.
We have every condence
that De Jong will bring a long
term solution to our poor run
of results. We are now happy
that nally the whole techni-
cal bench is complete and
that they will work together to
achieve the results, he said.
TACTICAL ABILITY
He said the new coach was
appointed based on his tacti-
cal ability and hope it can be
imparted on the team.
De Jong takes over just
two weeks after Leopards had
agreed terms with Briton Trev-
or Morgan who whoever failed
to take over at the team after
he requested for two
weeks to consider
another option he
had.
The Dutch-
man takes over
from James
Nandwa, who
was sacked
almost two
months ago
at the height
of poor re-
sults.
By the
time he left
Leopards,
N a n d w a
had won
only two
Kenyan Pre-
mier League
matches out
of eight the
club was in-
volved in.
Nandwa had
taken over from Luc
Emayel, whose stay
in the Den was just as
short after succeeding
another Dutchman, Jan
Koops.
NEW MAN IN TOWN
Coach and captain say Stars will proceed
SPANISHLALIGA
EUROPEAN STANDINGS
ENGLISH PREMIER LEAGUE
P W D L F A GD PTS
Man City 38 27 5 6 102 37 +65 86
Liverpool 38 26 6 6 101 50 +51 84
Chelsea 38 25 7 6 71 27 +44 82
Arsenal 38 24 7 7 68 41 +27 79
Everton 38 21 9 8 61 39 +22 72
Tottenham 38 21 6 11 55 51 +4 69
Man United 38 19 7 12 64 43 +21 64
Southampton 38 15 11 12 54 46 +8 56
Stoke City 38 13 11 14 45 52 -7 50
Newcastle 38 15 4 19 43 59 -16 49
Crystal Palace 38 13 6 19 33 48 -15 45
Swansea City 38 11 9 18 54 54 +0 42
West Ham 38 11 7 20 40 51 -11 40
Sunderland 38 10 8 20 41 60 -19 38
Aston Villa 38 10 8 20 39 61 -22 38
Hull City 38 10 7 21 38 53 -15 37
West Brom 38 7 15 16 43 59 -16 36
Norwich City 38 8 9 21 28 62 -34 33
Fulham 38 9 5 24 40 85 -45 32
Cardiff City 38 7 9 22 32 74 -42 30
Atletico Madrid 38 28 6 4 77 26 +51 90
Barcelona 38 27 6 5 100 33 +67 87
Real Madrid 38 27 6 5 104 38 +66 87
Athletic Club 38 20 10 8 66 39 +27 70
Sevilla 38 18 9 11 69 52 +17 63
Villarreal 38 17 8 13 60 44 +16 59
Real Sociedad 38 16 11 11 62 55 +7 59
Valencia 38 13 10 15 51 53 -2 49
Celta de Vigo 38 14 7 17 49 54 -5 49
Levante 38 12 12 14 35 43 -8 48
Malaga 38 12 9 17 39 46 -7 45
Rayo Vallecano 38 13 4 21 46 80 -34 43
Getafe 38 11 9 18 35 54 -19 42
Granada 38 12 5 21 32 56 -24 41
Espanyol 38 11 9 18 41 51 -10 42
Elche 38 9 13 16 30 50 -20 40
Almeria 38 11 7 20 43 71 -28 40
Osasuna 38 10 9 19 32 62 -30 39
Real Valladolid 38 7 15 16 38 60 -22 36
Real Betis 38 6 7 25 36 78 -42 25
De Jongs rst duty will be
during the Regional (Cecafa)
Nile Basin tournament that
kicks off on Thursday in Su-
dan.
FEVERPITCH
Tuesday, May 20, 2014
STANDARD
THE
www.standardmedia.co.ke
Appiah says he is his own man and predicts Ghana will excel in WC, P.60-61
Manchester United name Van Gaal as manager P.62
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S You A1 NYAYo: 6er Mahia feIIewers. |lnOO: SlllOlL
ONLLuO/SlNLllL
8y IKMf wKl80l
On Muy 22, Tuskef wefe uI home uguInsI Gof Mu-
hIu, buI InsIeud oI pIuyIng Ihe hxIufe In NuIfobI, de-
cIded Io Iuke Ihe muIch Io MumIus Io uvoId Ihe In-
IImIduIIng 'Gfeen Afmy` us Ihey hunIed Iof muxImum
poInIs Ifom Ihe muIch.
The pIoI dId noI wofk, us Ihe 'Gfeen Afmy` some-
how Iound IIs wuy InIo Ihe MumIus CompIex In u
muIch IhuI ended In u buffen dfuw.
ThIs IIme, Ihe bfewefs huve no opIIon us Ihey
come Iuce-Io-Iuce wIIh Ihe ufmy us Ihe Iwo sIdes
meeI In mIdweek Ieugue cIush uI Nyuyo SIudIum Io-
moffow evenIng.
The hxIufe Is cfucIuI Iof boIh sIdes, whIch seek Io
keep up Ihe chuse on Ieudefs Bungefs.
Gof MuhIu skIppef JefIm Onyungo hud no kInd
Saturday 8arcede
Suuday 8arcede
Saturday 8arcede
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Download free QR Readers from
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WE ARE ON
COURSE, SAYS
WANYAMA
Harambee Stars captain Victor
Wanyama (right) covers the ball
from a Comoros opponent during
the Africa Cup of Nations qualier
at the Nyayo National Stadium on
Sunday. [PHOTO: DENNIS OKEYO /
STANDARD]
Lack of matches blamed
for Stars narrow victory
BY GILBERT WANDERA
Despite the slim 1-0 victory over Comoros in the Africa
Cup of Nations qualier on Sunday, Harambee Stars are
condent that they will make it to the next round of the
qualiers.
Team captain Victor Wanyama and coach Adel Am-
rouche said the narrow win is still important for Stars con-
sidering the fact that the team has not played together for
almost six months.
The last time Harambee Stars played together was on
December 12 when the team beat Sudan 2-0 in the nal
match of the Senior Challenge Cup at Nyayo Stadium.
A planned friendly against Sudan in March did not take
place following a stand-off on where it was supposed to
be played.
Wanyama, who turns out for English side Southamp-
ton, said the team is grateful for the one goal and should
CONTINUED ON PAGE 63
EMV REPORT:
Transition hitches as
move to chip ATM cards
nears tail end
PAGES 1415
Tourism can thrive despite
terrorism PAGE 6
Kenyas new economic data: Will
size matter? PAGE 3
Tuesday, May 20, 2014 / The Standard
Turn Sh15,000 in seedlings
into Sh1.8 million PAGE 10
PAGES 89
Joy of
Mr Call More
Safaricom CEO credits rms enviable
prots to a helicopter strategy that
enables it think long term
Safaricom CEO Bob Collymore. [PHOTO: JONAH ONYANGO/STANDARD]
2
By LILLIAN KIARIE
With her career in nance and
accounting spanning about 20 years at
some of Kenyas top rms, Ms Rosemary
Kinanu Gitumas humility is refreshing. She
is renowned for being no-nonsense in the
ofce, and gives off a condent demeanour
as she balances on her four-inch heels. The
mother of ve has embraced fashion, and
loves wearing red and embellishing her
look with pearls and brooches.
Why do you think your peers have
dubbed you a no-nonsense leader?
(Laughs) I believe it is because I am
rm but fair, operate with high integrity
and I am highly committed; I thrive best
under complexity. I push for attention to
detail and a holistic business view. This
may make some uncomfortable, thus the
moniker.
How do you describe yourself?
As a mother of ve and an accountant
by profession. For the last 14 years, I have
been serving at the East African Portland
Cement Company Ltd, where I have held
positions such as acting head of nancial
management, internal audit manager and
board director at EAPCC (Uganda) Ltd.
Youve held several other management
positions, right?
I worked with Numerical Machining
Complex Ltd as the nance and
administration manager before I moved
to EAPCC. I also worked at Care Kenya
as a nancial consultant, and at Nairobi
Bottlers as the treasury and operations
accountant for about two years.
I have also served as vice-chairman
at the Institute of Certied Public
Accountants of Kenya (ICPAK) Council,
where I took ofce in August last year, and
I am on the management committee of
the Association of Women Accountants of
Kenya (AWAK).
In the early years of my career, I worked
at Kenya Airways as a management trainee
and budget accountant after working at
Deloitte, where I was an audit trainee.
What is your educational background?
I have an MBA (accounting and nance)
and a bachelor of commerce degree
(accounting option), both from the
University of Nairobi.
I am currently expanding my knowledge
with a PhD in Switzerland, which was
inspired by an advanced management
programme I undertook at Strathmore
Business School.
What is your management style?
I strongly believe in teamwork. In
accounting, one has to be time-based, so
to beat deadlines and ensure the quality of
work done is high, I want to help out with
assignments and inuence results.
You are very passionate about the
accounting profession, why?
Unlike what it is depicted to be,
accounting is a profession that can steer
growth and impact different strategic
spheres. Accountants are trained in all
disciplines and I believe that if they are
given the right recognition, they can
facilitate driving the national agenda.
What are your weaknesses?
I am a workaholic. I feel the pressure to
accomplish things, so I ensure I work until
I complete all assignments.
So how do you nd time for family?
I am an early riser Im up by 4.30am
even if I sleep late due to deadlines. I have
also mastered the art of discipline and
plan my days activities. I get the strength
to strike a balance between work and
family from God who has given me great
devotion and patience.
What inspires you?
I am the rst born in a family of 11.
Since I was a young girl in Mwichiune
Lowerchure Primary School, I have wanted
the best for myself and for my loved ones.
I worked hard and knocked on doors until
I got opportunities; I want to set a good
example for my siblings.
My determination saw me become the
rst person to join university in my village,
and I was also the best-performing student
in the rst year of my BCom studies.
I now use the knowledge I have gained
through my years of experience to impact
society.
What do you do when you are not
working?
I am a member of the Karen Country
Club and Parklands Sports Club and
enjoy networking, travelling, reading and
socialising.
Your advice to the youth?
Follow your dreams, exercise humility,
be resilient, have respect for others even if
they are your career rivals, and maintain a
high level of maturity.
bizbeat@standardmedia.co.ke
Business Beat
2
Tuesday, May 20, 2014 / The Standard
I have been impressed with the urgency of doing.
Knowing is not enough; we must apply. Being
willing is not enough; we must do,
LeonardodaVinci
Published by: The Standard Group Ltd; Group Managing Editor Print: Kipkoech Tanui; Deputy Managing Editor Daily Editions: Peter Okongo; Production Editor: Richard Kerama; Business Editor: Hussein Mohamed; Weekend Business
Editor: Jevans Nyabiage; Supplements Editor: Julius Mokaya; Senior Sub-Editor: Kagure Gacheche; Sub-Editors: Andrew Watila, John Oyuke; Writers: Jevans Nyabiage, James Anyanzwa, Lillian Kiarie, Macharia Kamau, Frankline Sunday,
Jackson Okoth, Nicholas Waitathu; Manager Print Creative: Dan Weloba; Creative Designer: Ian Mbaya; Photography: Standard Team; Facebook: Biz Beat; E-mail: bizbeat@standardmedia.co.ke; Website: http://www.standardmedia.
co.ke All correspondence to Business Beat is assumed to be intended for publication. Business Beat accepts no responsibility for unsolicited manuscripts, artworks or photographs. All rights on publication remain with the
publisher.
>> CORPORATE FOCUS
CorporateInterview
The Energy Regulatory Commission has said Ke-
nyans should brace themselves for higher electric-
ity prices and subsequent rise in the cost of living.
On each unit of electricity consumed, the fuel cost
charge will increase to Sh7.22 from Sh5.19.
The rise has been attributed to depressed rains
over the March to May season. ERC said this would
see power generation shift to heavy dependence on
thermal power producers that burn diesel to gener-
ate electricity. The cost of the pricey fossil fuel will
be passed on to consumers. Generation capacity at
the Seven Forks hydroelectricity dams has already
fallen by about half as a result of low water levels.
The Presbyterian
University of East Afri-
ca (PUEA) has appoint-
ed Professor Peter
Kibas as the next vice
chancellor. He is a pro-
fessor of management
and entrepreneurship,
and holds a PhD in en-
trepreneurship studies
from the University of
Illinois, USA, specialis-
ing in micronance and human resource develop-
ment, management and evaluation.
He holds a master of education in vocational and
business studies from the same university, and a
bachelors degree in business studies from the Uni-
versity of Brunswick, Canada.
Prof Kibas, 62, previously held the position of
deputy vice chancellor at Kabarak University for a
ve-year term.
40%
The increase in fuel cost
charges on electricity bills
that will be effected this
month.
East African Portland Cements nance
manager Rosemary Kinanu Gituma.
Although developing
countries have seen poverty fall
dramatically one billion
people have been lifted out of
poverty since 1990 income
inequality has been unchanged
since 1960, according to
research by economists Amparo
Castell-Climent and Rafael
Domnech.
Across countries, because of
the relatively faster growth of
emerging economies, inequality
has dropped as the income gap
narrows. But within countries,
inequality on average has risen
or not improved signicantly.
One of the reasons is that as
countries industrialise and
urbanise, they grow more
quickly. Those who move into
industry and cities earn more
than those who dont. So,
income inequality tends to rise
with economic development.
However, countries can bring
down income inequality through
redistributive policies, such as
social welfare systems.
Another solution is
progressive tax rates. The
Organisation for Economic
Co-operation and Development
(OECD) suggests a cut in taxes
to encourage employment,
offset by a rise in certain taxes
including green taxes, plus
active labour market policies to
cut employment costs.
BBC
Appointment
In brief: New data on income gaps
propels issue to global policy stage
NumberoftheWeek
3
Business Beat
Tuesday, May 20, 2014 / The Standard
I think they are trying to massage the
gures to convince the public the economy
is doing well, but we are in bad shape,
Samuel Nyandemo
ECONOMY <<
By JAMES ANYANZWA
T
he reading out of the
countrys performance data
has in recent years largely
been greeted with gloom,
disappointment and frustration.
The annual event, which
normally precedes the release of
Budget estimates for the new
nancial year, has mostly served
as a forum where expectations
are trimmed and investment
plans revised.
But this is set to change when
Cabinet Secretary for Devolution
and Planning Anne Waiguru
releases Kenyas economic data,
thanks to the new method of
calculating gross domestic
product (GDP), commonly
known as rebasing.
Though the adjusted statistics
are still being compiled by the
Kenya National Bureau of
Statistics (KNBS), preliminary
indications are that the total
value of goods and services
produced in the country (or the
GDP) will increase by between 15
and 20 per cent.
Whether the growth is
Will size matter? The
reality of new GDP data
Politics of statistics: The economy
is expected to grow by 20 per cent
after gures are revised, yet poverty
and income inequalities persist
REBASING:
supported by economic
fundamentals remains to be
seen, but a cross-section of
economists are of the view that
such growth could be per-
ceived and not in tandem with
reality.
This is because the economy
remains burdened by poverty (it
is among the worlds 30 poorest
countries), unemployment (at 40
per cent) and high costs of living.
MIDDLE-INCOME STATUS
It is also plagued by insecu-
rity, dilapidated infrastructure,
high levels of maternal and
infant mortality, increased
Government spending on
recurrent items, and rising
income disparities (the top 10
per cent of Kenyans earn 44 per
cent of national income, while
the bottom 10 per cent earn less
than one per cent) .
Kenyas GDP is expected to
grow from $41.6 billion (Sh3.61
trillion) in 2013 to $50 billion
(Sh4.35 trillion) this year,
pushing East Africas largest
economy into middle-income
status by September. The
country was expected to attain
this feat by 2030.
The new gures could see the
Jubilee Administration walk tall
for having steered the economic
rebound the country has been
working towards for decades.
The changes being proposed
all seem fairly standard, with the
new data continuing to highlight
the importance of the service
sector as the engine of growth in
most African countries, said Mr
David Cowan, Citibanks head
economist for Africa.
Given that the delay in
rebasing was not as signicant as
in West Africa, the impact is
unlikely to be as large as in
Ghana in 2010 or Nigerias recent
revision.
According to Mr Cowan, the
revision of Kenyas GDP would
help lower the countrys high
scal and current account
decits, giving it better standing
when it seeks to borrow from
international lenders.
But concern remains that the
proposed growth is not sup-
CONTINUED ON PAGE 5>>
Devolution
and Planning
Cabinet
Secretary
Anne Waiguru
will announce
Kenyas
revised
economic data
that will show
the countrys
GDP increas-
ing by
between 15
and 20 per
cent.
[PHOTO: FILE/
STANDARD]
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Business Beat
Tuesday, May 20, 2014 / The Standard
4
By PAUL WAFULA
T
he scale of rot at the
Companies Registry has
once again been high-
lighted in a boardroom war that
has pit a Greek against a
Canadian and two Kenyans.
The feud at the rm Bact-
lab Limited, a healthcare
products marketing company
dragged on silently for over a
year before spilling into Kenyan
courts.
It has now exposed the soft
underbelly of the registrars
ofce where feuding directors
can cut out fellow shareholders
from ownership of a company
through back-door measures.
Documents led at the courts
show that each camp of feuding
directors has secured different
records of shareholding pur-
portedly from the same le
each favouring their case.
UNSUSPECTING CUSTOMERS
Further, the documents,
which are in Business Beats
possession, allege that a faction
of Bactlab directors went ahead
to register a company with an
identical name, which is contrary
to the law, and started operating
a similar business that allowed it
to steal unsuspecting custom-
ers from the mother company.
The irregularity in the
company names should have
been easy to spot as the
controversy involves at least two
foreigners.
The case touches on legiti-
mate registrar records, which
could have signicant ramica-
tions for the thousands of
companies registered every year.
In addition, the changes in
shareholding were done without
following laid-down procedures,
allege the documents led in
court.
Bactlab Limited was regis-
tered in November 2007 by a
Canadian businesswoman, Mrs
Soa Asali, and a Greek, Mr
Gregorious Smaragdis, each
holding a 50 per cent stake in the
rm.
About a year later, on July 30,
2008, the two foreigners agreed
CASE STUDY:
>> SPECIAL REPORT
The allocation of the name Bactlabs East
Africa Limited to you was inadvertent,
and the same is no longer tenable,
Companies Registry
to enter into a partnership with
two Kenyans. They each ceded
20 per cent of their stake in the
company.
This saw Mr Hussein Ahmed
Farah and Mr Farah Mohamed
Awad join the company as
shareholders. The two Kenyans
injected Sh5 million in working
capital for a 40 per cent stake in
the rm.
Mrs Asali, Mr Smaragdis and
Mr Farah each ended up with 30
per cent shareholding under the
new arrangement, while the
remaining 10 per cent was taken
up by Mr Awad, who also
doubled as the companys
nance director.
TROUBLE BEGINS
According to the joint venture
agreement seen by Business Beat,
Bactlab Limited was to hold
courses, lectures and exhibitions
and organise seminars in its
efforts to market medical and
diagnostic products in East
Africa. The company has ofces
along Nairobis Kinoo Road.
The companys troubles
began in September 2011 when
Smaragdis registered a different
company with an identical name
Bactlabs East Africa Limited
to carry out a business similar
to Bactlab Limiteds.
To widen the rift, Smaragdis,
who describes himself as an
economist, then moved with all
but two of the employees from
Bactlab Limited to his new outt.
All key staff who resigned
from Bactlab Limited are now
employees of Bactlabs EA Ltd.
The company was operational
even when the previous
management was active at
Bactlab Limited, thereby using
the resources at their disposal to
benet the rival company, the
court documents read.
The other directors also allege
that the Greek went ahead to
bleed the original company by
taking cheques payable to
Bactlab Limited and banking
them in Bactlabs EAs accounts.
This was in addition to diverting
customers and suppliers to the
new outt.
During a meeting held on
November 15, 2011 at Bactlab
Limited after the other directors
learnt of his duplicity, Smaragdis
was kicked out of the position of
managing director.
After various reforms were
implemented at the Companies
Registry, the department on
November 7, 2012 attempted to
address the controversy around
the two rms names by asking
the proprietors of the new
company to register a different
business name.
We have noted that this
ofce registered a company by
the name Bactlab Limited
(147012) on 5th November 2007.
Please note that this was before
you sought registration for your
company under the same name
Bactlabs East Africa Limited
(CPR/2011/56079) on 9th
September 2011, the letter,
signed by State Counsel Chirchir
Faith on behalf of the registrar of
companies, reads in part.
The registrar argued that the
two companies bear similar
names and cannot exist concur-
rently as this would confuse the
public.
SHAREHOLDING DISPUTE
The allocation of the name
Bactlabs East Africa Limited
(CPR/2011/56079) to you was
inadvertent, and the same is no
longer tenable within the
meaning of Section 20 of the
Companies Act.
We, therefore, call upon you
to change the name of your
company within six weeks from
the date hereof, the letter said,
adding that failure to do so
would force the ofce to invoke
the provisions of Section 20 of
the Companies Act.
Under this legislation, if a
company is directed to change
its name and does not do so
within the given timeline, its
ofcers shall be liable to a ne
not exceeding Sh100,000 each
day the default continues. A year
and a half down the line,
Bactlabs EA Ltd still exists.
The faction led by Smaragdis
has also moved to court seeking
orders to wind up the original
Reforms needed: Case pitting two camps of
directors against each other reveals tenuous
nature of records in a department where one
can get rid of shareholders virtually at will
Latest boardroom feud exposes depth
Business Beat
5
Tuesday, May 20, 2014 / The Standard
REBASING:
SPECIAL REPORT <<
Filly Investments supplied goods to the
company at an uncompetitive price
determined solely by the petitioner,
Court documents
company.
In his case, the Greek argued
that the new shareholders did
not pay for their shares, a
position that the other camp has
disputed.
Awad has accused Smaragdis
of engaging civil courts to
ground operations of Bactlab
Limited through winding up
proceedings.
The ght has also spilled over
into cyberspace, with one faction
accusing the other of stealing its
website domain name.
2011
The year in November when
Mr Gregorious Smaragdis
was kicked out as managing
director of Bactlab Limited.
Contacted by Business Beat
for comment, Smaragdis said his
lawyers would revert with his
side of the story, but by the time
of going to press days later, this
had not happened.
Business Beat wanted him to
respond to allegations that he
had on previous occasions
registered a company and at
some point failed to fully
disclose that he was a foreigner.
On a separate occasion, it is
alleged that he used one of his
companies to apply for a work
permit.
Records led in court show
that in April 2012, the Director of
Public Prosecutions asked the
Criminal Investigations Depart-
ment to investigate the fraud
allegations against Smaragdis.
According to the documents,
Smaragdis and two other
employees of Bactlab Limited
had incorporated Filly Invest-
ments, a rm that supplied
goods to the mother company,
without the knowledge of the
other shareholders.
At one point, Filly supplied
reagents to Bactlab Limited in a
transaction synonymous to a
person buying goods from
himself.
The petitioner abused his
position as a managing director
of the company by secretively
incorporating Filly Investments
to supply goods to the company
and Bactlabs East Africa Ltd ...
and by using his company, Filly
Investments, he supplied goods
to the company at an uncom-
petitive price determined solely
by the petitioner, court
documents read in part.
A search at the Companies
Registry revealed that the owners
of Filly Investments were also
employees of Bactlab Limited.
Also in contest is who the real
directors and shareholders at
Bactlab Limited are, given that
the registrar has different
versions, depending on who is
asking.
IMPLEMENTING REFORMS
And despite the fact that the
two Kenyans did not sign any
share transfer forms indicating
they had left the company,
Smaragdis managed to have
them kicked out, records at the
Companies Registry show.
This case has come to light at
a time when the registry is
implementing reforms to
streamline its processes, with
some changes operationalised as
recently as earlier this month.
The department has shufed
most of its staff, rooted out
middlemen who have pushed up
the costs of getting services, and
now requires company directors
to provide their photos, PIN
certicates to show tax compli-
ance, and copies of their IDs or
passports.
pwafula@standardmedia.co.ke
Economists query reality of Kenyas anticipated super growth
ported by economic fundamentals.
According to Dr Samuel Nyan-
demo, a senior lecturer at the
University of Nairobis School of
Economics: [The Government is]
targeting a favourable base year for
calculation of the GDP, which is
unethical. The cost of living has
drastically gone up, energy prices
have risen beyond the roof and the
agricultural sector is devastated. How
do you expect the economy to grow by
these gures?
I think they are trying to massage
the gures to convince the public the
economy is doing well, but we are in
bad shape.
POOR PERFORMANCE
Currently, KNBS data is hinged on
gures from 2001, but with the
rebasing, the reference year will be
2009.
According to Dr Nyandemo, the
Kenyan economy is supported by
three critical sectors tourism,
agriculture and manufacturing and
they are not performing well.
Dr Thomas Kibua, a senior
economist at the African Develop-
ment and Economic Consultants and
former deputy governor at the Central
Bank of Kenya, described the rebasing
exercise as the politics of statistics.
I dont believe there is any
economy in the world growing at 20
per cent. The fact of the matter is that
our economy is not growing, he said.
Whichever way you look at the
gures, I dont think the economy can
grow by more than ve per cent.
The National Treasury, however,
has claried that it will maintain its
growth forecast of 5.8 per cent for this
year.
GROWTH RATE
GDP will be higher by between 15
and 20 per cent, but the growth rate
will still be 5.8 per cent, even though
it will be based on a higher GDP
gure, National Treasury Principal
Secretary Kamau Thugge said.
Mr Kwame Owino, the Institute of
Economic Affairs chief executive,
added: What we are doing now is
accounting for the fact that since
2001, certain industries that have
grown, such as mobile telecommuni-
cations, and certain structures of the
economy have changed.
Last year, the economy took a
larger than expected beating, manag-
ing to grow by a marginal 0.1 per cent
from 4.6 per cent in 2012.
Analysts attributed this to a poorly
performing agricultural sector, which
is the countrys main economic
engine. The country has also yet to get
close to the 7.1 per cent growth it
recorded in 2007.
janyanzwa@standardmedia.co.ke
I dont believe
there is any
economy in the
world growing at 20
per cent. The fact of
the matter is that
our economy is not
growing. I dont
think the economy
can grow by more
than ve per cent.
>>CONTINUED FROM PAGE 3
of rot at companies registry
Business Beat
Tuesday, May 20, 2014 / The Standard
OPINIONS <<
What fails our security system is that the
people entrusted with it are willing to make
short-term gains through corruption,
XNIraki
6
I
n 2012, about 83 million
tourists visited France, 58
million visited Spain, 67
million visited USA and 25 million
visited Malaysia. In 2011, Egypt
had about nine million interna-
tional visitors, while another nine
million visited Morocco.
We got 1.7 million tourists
and hope to reach ve million in
the next ve years. But from the
other countries data, our target
should be 40 million tourists,
about our current population. But
this dream is being frustrated by
terrorism.
REVERSED FORTUNES
Tourism operators, from hotel
owners to curio shop owners, are
concerned about the fall in
international arrivals, particularly
after the recent evacuation of
British tourists from the Coast.
Some observers have sug-
gested that the evacuation was
not so much about a terror threat,
but a pronouncement made just
before that claimed that if the UK
does not open up its market to
miraa, British farms in Kenya
would be seized. One day the
truth will be known.
Tourism operators are calling
on the Government to do
something to reverse their
fortunes after all, security is its
responsibility.
A government is always willing
to secure the country because it
makes political sense; it does not
want to be accused during
elections that of doing nothing to
stop the death of its citizens from
terror attacks.
But more importantly, a secure
country is more likely to grow
faster economically. Terrorism
subdues economic activities
beyond tourism, it prevents
businesses operating 24 hours,
affects late-night drinking and
transport, and so on. I am not a
security expert, but I believe we
can secure this country.
WEAPONS AGAINST TERROR
Without boasting, I was in the
USA in 2001 when the September
11 attack took place. I recall
Americans anger and the
governments reaction.
Passing through airports
became a nightmare as security
checks were upgraded, but
Americans were willing to be
inconvenienced to be secure. New
technologies came up to detect
weapons. Americans, like
Kenyans, were willing to go after
the terrorists outside their
borders. But the greatest weapon
against terror in the US was not
new technology, it was American
unity and the citizens trust in
their government.
Historically, we have never
trusted our Government. If our
Government issued a travel
warning to Kenyans abroad, most
would ignore it and laugh it off.
In the aftermath of September
11, there was no Democrat or
Republican, they were all
Americans united in grief and
resolve to make their country
secure. Can we do the same? Can
we forget we are Jubilee or CORD
and just support each other until
our country is secure?
I once witnessed a couple
ghting in broad daylight. An
innocent man tried to separate
them. The turn of events
surprised me: the coupled ganged
up against the man and beat him
until he ed.
We must also be willing to
volunteer information on terror,
but the issue of trusting the
Government arises again. Most
Kenyans are afraid that if they go
to a police station to report a
terror threat, they would be
arrested. It is time the Govern-
ment built more trust.
Most terrorists and their
sympathisers live among us, not
in caves. Just like in most villages,
all the thugs are known, but no
one is willing to report them to
the police for fear of reprisal.
To defeat terrorism, we need to
improve our security and
registration system. How come
Ethiopia, which has a longer
border with Somalia than Kenya,
has had no terror attacks?
In the aftermath of September
11, the US immigration depart-
ment was reorganised and even
renamed. It became harder to get
an American visa. Universities
were mandated to keep tabs on
their students whereabouts.
We need to improve on our
registration system to ensure
every Kenyan or non-Kenyan is
accounted for.
What fails our security system
is that the people entrusted with it
are willing to make short-term
gains through corruption at the
expense of the country trust
again, but add a lack of patrio-
tism.
We also must be willing to
make trade-offs. We might lose
some freedoms to secure the
country; we cannot have it all. But
some feel that the Government
might take advantage of insecurity
to permanently curtail our
freedom. We have enough
institutions to balance the
excesses of the Government.
To make this country secure
and bring back the tourists, we
must be quick to forget.
During the anniversary of
September 11, American media
usually show attacks in Nairobi
and Dar es Salaam, not New York.
They want Americans to go on
with their lives. We put too much
emphasis on past events, creating
patterns that make the country
look too insecure. Any time there
is a terror attack, we go back to
history and list all terror attacks.
Any tourists reading or watching
that will rarely return. We should
not really leverage on bad news.
PAINFUL EXPERIENCE
If we could take these few
steps and then repackage our
country beyond the Big Five, we
could reach 40 million tourists a
year and grow our economy and
create jobs.
We must nally learn from
nature. Delivering a baby is a
painful experience, but with time,
women forget the experience and
get yet another child. We can do
the same. Think of terrorism as
the birth pangs of a new nation
that is stronger, united and
prosperous. Didnt Americans
make Ground Zero a tourist
attraction? Were the worlds most
thriving economies today, like
Germany and Japan, not once
ravaged by war? This is not time
for pessimism, its time for resolve.
We should see ourselves as the
generation that rose to the call of
duty and overcame the threat of
terrorism. Is this not how heroes
are made?
By the way, why are terrorists
attacking ordinary Kenyans now?
The writer is a senior lecturer at
University of Nairobis School of
Business. xniraki@gmail.com
Have an opinion to share on business
issues? bizbeat@standardmedia.co.ke
Tourism can thrive despite terrorism
ECONOMICINSIGHT
with XNIRAKI
Most
Kenyans
are afraid
that if they
go to a po-
lice station
to report
a terror
threat,
they would
be ar-
rested.
It is time
the Gov-
ernment
built more
trust.
The reality of the standard gauge
railway (SGR) was highlighted when
the Prime Minister of China and the
President of Kenya put pen to paper
in the presence of regional presidents
at a State House event.
The Governments commitment to
bringing positive reform in the trade
logistics industry is, therefore, not in
doubt.
About two weeks prior to the State
House signing, another signicant
event, also attended by regional
presidents, occurred, this time at
Nairobis Safari Park Hotel where the
Kenya Trade Network Agency
(KenTrade) launched its agship
project, christened the National
Electronic Single Window (e-SWS)
The projects objective is to reduce
cargo clearance time at key trade
nodes like the Port of Mombasa, Jomo
Kenya International Airport (for air
freight) and borders.
This will be achieved by imple-
menting a single platform to process
trade-related cargo clearance
documentation.
The two events are very closely
related in trade logistics, especially in
cargo evacuation from the Port of
Mombasa into the region, which
explains the regional interest in both
events. It is also not by coincidence
that Kenya hosted both events since
we are both the gateway to East
Africa and the big brother in the
regional economy.
My interest is in the launch of
e-SWS, which is the feeder to the
second event and should create a
synchronised system and provide the
much-needed magic to make trade
facilitation in the northern corridor
more effective.
However, there are some
concerns. First, it is important to note
that rail wagons can only have cargo
loaded for a destination after an
order from the Kenya Ports Authority.
However, for KPA to issue the order, it
must receive clearance from all
invested Government agencies.
My worry, and that of many other
clearing agents, is that in the event
the wagons have to wait longer for
cargo to be loaded, the blame for the
delay will rest squarely on the agents,
who will then be branded corrupt,
inefcient and unprofessional.
This would be far from the truth,
and the e-SWS should provide the
much-needed efciency to ensure
cargo is quickly evacuated from the
port into wagons for onward
transport.
UNWARRANTED COSTS
But did the launch of the single
window address the issues of
inefciencies at the port?
My experience, and that of many
other agents, is that the launch has
changed little as port operations still
maintain the status quo. Inefciencies
transferred to the window will
produce the same results of long
cargo dwell times and higher costs of
storage and trade.
As clearing agents, we may have
been informed, but I can say without
any fear of contradiction that we were
never fully involved in the actual
formulation of the modules in the
window, yet so much will be expected
of us in the long run.
As clearing agents, we need to be
allowed to interrogate the e-SWS and
evaluate its efciency if we are to
make positive steps in trade logistics
as envisaged.
The Government must take the
lead in recognising the important role
of clearing agents in cargo logistics
by insisting that all requisite State
agencies work together for better
interventions. Can we borrow a leaf
from Nigeria where the clearing
agents umbrella body is housed in
the Ofce of the President for better
monitoring and information sharing,
which has greatly contributed to
better service delivery?
By working together, we can make
better use of our diverse expertise in
logistics.
The writer is CEO, Keynote
Logistics.
bizbeat@standardmedia.co.ke
WILLIAMOJONYO
Regional trade needs SGR, single window to work in harmony
Business Beat
7
Tuesday, May 20, 2014 / The Standard
Business Beat
Tuesday, May 20, 2014 / The Standard
8
Record performance: Telecom rm
credits enviable prots to its ability to
see further ahead and anticipate risks
to lock in long-term gains
FINANCIAL REVIEW:
Safaricom CEO
Bob Collymore.
[PHOTO: JONAH ONYANGO/
STANDARD]
View from the top: Safaricoms helicopter strategy keeps tills ringing for shareholders
>> SPECIAL REPORT
When you look at the CBD from several hundred
metres above, it seems like a really small city and it
gives you an opportunity to look further ahead,
BobCollymore
By MACHARIA KAMAU
and JEVANS NYABIAGE
F
or the majority of Kenyans,
the news and signicance
of Safaricoms record
prots has probably been
replaced by another success,
scandal or crisis.
For Bob Collymore, Safari-
coms CEO, it is not unexpected.
The nancials are good for a
day, but after tomorrow, people
will start calling with all sorts of
issues, Mr Collymore reected
in an interview with Business
Beat, a day after Safaricom
announced it had made Sh23
billion in net prot.
Many people will not
remember the numbers a few
days from now, but we will
remember the school that we
have built in Pokot and the
Sh250 million dam we are
putting up in Kwale, he said.
Working with Safaricom is
satisfying frustrating at times
but the joyous times have
been much more. The reward is
the success that comes with
transforming lives.
That Collymore chooses to
focus on what has changed lives
seems utopian and like some-
thing out of an NGOs playbook,
not a corporate like Safaricom.
But this is what is helping the
rm make money hand over st.
So what is his reward for
holding together the behemoth
that Safaricom has become?
Most importantly, what is the
wider signicance of these
results for the Government,
shareholders and competitors?
Business Beat asked Colly-
more the former question. He
did not give a straight answer,
but said since he is on assign-
ment from Vodafone, Safaricoms
UK-headquartered parent rm, it
is the one that rewards his hard
work in Kenya.
I do not get fat bonuses, but
I am not complaining, he said.
In jest, he added that the
board had agreed to give him
something special.
Yesterday, they [the board]
agreed to buy me a private jet,
Collymore said. He, however,
implied that if that offer were
ever to be put on the table, he
would rather settle for a
helicopter.
Collymore is fascinated by
choppers.
He has a miniature helicopter
on his ofce coffee table and
makes regular reference to
choppers when talking about his
strategy at Safaricom.
He said he takes a helicopter
approach, where he is able to
see things from a different
perspective when he is off the
ground.
WIDER SIGNIFICANCE
When you look at the CBD
from several hundred metres
above, it seems like a really small
city and it gives you an opportu-
nity to look further ahead. But
the city is not so small when you
are in it on a Friday afternoon,
with the human and vehicle
trafc.
He said that is the approach
Safaricom is taking looking
further ahead and long term, as
opposed to living for the day.
And this strategy has put the
telco in a most enviable position.
Safaricoms revenue for its
nancial year that ran from April
2013 to March this year was
Sh144 billion, up 16 per cent
compared to the previous
nancial year.
The performance was driven
by strong growth in non-voice
revenues as customers sent more
short messages (SMSes), used
more Internet services and
became more active on its
mobile money transfer service,
M-Pesa, increasing earnings
from the innovative product.
Voice revenues remained
Safaricoms bread and butter,
with Sh6 out of every Sh10 in
revenue contributed by money
earned from phone calls. Its
voice revenues stood at Sh86.3
billion, an 11.6 per cent increase
compared to the previous year.
It was an impressive perfor-
mance in voice, given that
Safaricoms competitors Airtel,
Orange and Essar have tried
hacking away Safaricoms
dominance by offering cheaper,
and even free, calling rates.
Despite the telcos network
being the poorest among the
four mobile phone operators, it
keeps growing subscriber
numbers. This dees all logic
taught in business schools that
great service equals more money.
However, it underlines the
truism that he who controls the
market, controls the mind and
the money.
Safaricoms voice subscribers
grew 11 per cent to 21.5 million
customers in the 12 months to
March 2014.
The rm has been able to stay
protable by keeping a lid on its
direct costs (such as the commis-
sions it pays out) and operating
costs (such as salaries and rent).
Its nancial results show
direct costs and operating costs
increased by 10 and 14 per cent,
respectively, while revenues went
up 16 per cent.
Safaricoms three competitors
Airtel, Orange and yuMobile
are making losses. The fate of
Orange and yuMobile is
unknown as potential suitors
Business Beat
9
Tuesday, May 20, 2014 / The Standard
View from the top: Safaricoms helicopter strategy keeps tills ringing for shareholders
SPECIAL REPORT <<
The record prots largely reect
Safaricoms near-monopoly in, not just the
telecom sector, but also the money transfer
sector in Kenya, Peter Wanyonyi
M-Pesa in 2007.
And now chapter three is
being written with the collapse
and re-emergence of Safaricoms
new competitors.
But there are two things that
show Safaricoms adaptability to
change.
First, the SMS as a form of
communication is headed the
way of the fax machine. It is
becoming obsolete as subscrib-
ers turn to free messaging
applications like WhatsApp.
Safaricom knows this and in
its nancial year ended March
2014, the telco reported it had
lost about 130,000 SMS custom-
ers. In 2013, Safaricom had 12.47
million SMS customers; a year
later, this dropped to 12.34
million.
However, the loss in customer
numbers has not translated to a
drop in SMS revenues. Instead,
these revenues were up 34 per
cent to Sh13.6 billion and this
is despite a reduction in the cost
of sending a text message.
Safaricom rolled out an SMS
bundle service and the Bonyeza
Ushinde promotion (that
rewarded customers who sent
texts with cash and other prizes),
which helped grow revenues.
DEFENDING ITS TURF
Second, Safaricom sits on a
pile of cash and is able to
generate more easily.
Safaricoms free cash ow as
at the end of March stood at
Sh22.7 billion, up 56 per cent
from Sh14.5 billion a year earlier.
Free cash ow is the money
that is left over after a company
has taken the money it has
generated from operations and
invested some of it in capital
expenditure, and paid taxes and
interest.
Since Safaricom can generate
Sh22.7 billion in free cash ow, it
can choose to continue investing
in its infrastructure, pour more
money into innovations or
increase the dividend payout,
which it did. The dividend per
share was increased to Sh0.47.
Hence, with the ability to
generate free cash ow and the
cash that Safaricom sits on (the
mobile phone services company
had Sh17.6 billion in the bank at
the end of March, enough to
fund the laptop project!), it is a
foregone conclusion that the
telco will be defending its turf
against competitors.
Perhaps also ghting in
Safaricoms corner might be the
Government, which is the
second-largest shareholder with
a 35 per cent stake in the telco
(Vodafone holds 40 per cent).
In the last nancial year, the
Government received about Sh54
billion from Safaricom in the
form of dividends (Sh6.6 billion)
and taxes (Sh47.5 billion).
Further, the Government and
other shareholders have
probably enjoyed Safaricoms
share price rally.
The rms share price has hit
a high of Sh13.40 in the last one
year. On Friday last week, the
16%
Safaricoms growth in
revenue in its 2013/14 nan-
cial year from the previous
year. It made a record Sh23
billion in net prot.
look to buy off their assets. The
uncertainty is working in
Safaricoms favour, as some
subscribers of the former two
rms switch over.
But Safaricom cannot sit
pretty. The exit of France Telkom,
which is the majority owner in
Orange, could usher in South
Africas MTN or Vietnams Viettel
into the market.
And then there are the mobile
virtual network operators
such as Equity Bank and Tangaza
Ltd who have been given the
licence to offer mobile phone
services.
The new entrants will usher
in what will perhaps become the
third chapter in the making of
the countrys telecommunica-
tions industry.
BILLING SYSTEM
The rst chapter was written
between 2000 and 2003, when
Kencell (the grandfather of
todays Airtel) grew faster than
Safaricom due to its high quality
voice and data network, while
the latter experienced teething
problems due to its association
with the then struggling Telkom
Kenya.
Safaricoms network was
congested and prone to break-
downs.
However, from around 2002,
Safaricom began rebranding
itself as a cheap network. It
began a billing system based on
seconds rather than its rivals
minutes. Taking advantage of
Kenyans peculiar calling habits,
where the average phone call
lasts a few seconds, Safaricom
found a comfort zone. Kencell
later changed its tariffs to
per-second billing, but the
damage had been done.
Chapter two of the industry
was written with the launch of
counter closed at Sh12.85.
This means that since the
initial public offering in 2008, the
share price has risen by about
Sh8 per share, reecting a gain of
about 168 per cent.
From a capital appreciation
perspective that is, the rise in
the value of the shares from the
time of the IPO to date the
Governments is sitting on a
capital gain of Sh112 billion in
six years.
This raises an important
question: will the Government
ever come down heavy on a
company that gives it so much
money and continues to do so?
This probably puts Safaricom
in a very strong negotiating
position to protect its network
and M-Pesa, and most impor-
tantly, keep the tills ringing.
The record prots largely
reect Safaricoms near-monop-
oly in, not just the telecom
sector, but also the money
transfer sector in Kenya. It is
testament to an excellent money
transfer platform and great
marketing skills, said Mr Peter
Wanyonyi, a telecoms analyst.
But it is also a worrying
indicator for the other telecom
operators, as well as for the
sector in general.
But Safaricom is not just a
telecom. It is also in banking,
insurance, health, agriculture
and the media space.
For the rst time, Standard
Investment Bank (SIB) valued
Safaricom separately as a
nancial services rm and as a
telecommunications company.
We have attempted to value
M-Pesa using relative multiples,
considering it as a payments
processor in the league of Visa or
MasterCard. We believe separat-
ing the nancial services and
telecommunications will help
improve visibility on the value
drivers for Safaricom, the
analysts said a research note
before the release of the results.
SIB valued the core telecoms
business at Sh6.92 per share,
while the nancial services
business was valued at Sh5.61
per share. The total value of the
business per share was Sh12.53.
This is an interesting way of
looking at Safaricom. What if
some time down the road
Safaricom decides to list the
nancial services as its own
entity at the stock exchange?
Would there be more value in
breaking up Safaricom in two
and trying to grow the busi-
nesses separately?
However, Collymore has
always maintained that both
sides of the business have to be
looked at as one.
Analysts remain bullish about
Safaricoms prospects, attribut-
ing their condence to the rms
dominant position and diversi-
cation of earnings.
SIB says it does not see major
downside risks to its valuation.
But there are two uncertain-
ties: one relating to the proposed
national roaming regulation
(mandating sharing of both
telecommunications infrastruc-
ture and mobile money agency
network); and the other the
mobile termination rate (MTR).
BIGGEST ASSET
The next MTR reduction is set
for July and will see operators
paying Sh0.99 for call termina-
tions to other networks, down
from the current Sh1.15.
According to industry gures,
Safaricom accounts for 77.5 per
cent of voice trafc, meaning it
terminates most of the calls.
This is unlikely to have a
major impact on retail tariffs, in
our view. With regards to the
proposed sharing of infrastruc-
ture, as long as there is a fair
tariff-setting mechanism, we do
not feel that this will be a major
concern, though the competitive
strength of Safaricom may be
loosened.
Implementation will,
however, be challenging,
depending on the type of
roaming adopted. East African
nations are also discussing
eliminating international
roaming costs, which will have a
positive impact on trafc
volume.
The biggest asset for the
mobile operator is its innovation
machine. M-Pesa has become
the latest push around mobile
payments, and it is giving the
mobile operator a headstart in
e-Commerce. The recent
introduction of Lipa na M-Pesa
which enables cashless
merchant payments will likely
be a hit this year .
And it is poised to be a big
beneciary in the new regula-
tions that ban cash payments in
passenger service vehicles (PSVs)
from July 1. It has signed up
about 3,000 buses, matatus and
taxis to its Lipa na M-Pesa
platform.
Collymore likens Lipa na
M-Pesa to M-Pesa, both in its
potential to grow revenues for
the company and change the
payments culture in Kenya,
where cash is king.
We do not expect huge
returns in the short term
because, again, we are not a
short-term company. In a few
years, we will look at this in the
same way that we look at M-Pesa
now, he said.
I was on the Safaricom board
in the early days of M-Pesa and
we would constantly ask Michael
(Joseph), When are we going to
get a return on this thing? I have
learned to look at things more
like Michael.
The telco is also working on a
number of innovations in the
public transport space, some on
its own and others with partners
such as Google.
While it may be delivering
record numbers for its share-
holders, Safaricoms network is
its biggest undoing. Top of the
woes among customers is the
number of dropped calls and
M-Pesa downtimes.
DROPPED CALLS
Collymore conceded the poor
network has been its main
headache.
In the CBD, for instance, the
rate of dropped calls is higher
than I would like it to be we
already know what the problem
is, he said.
Data trafc doubled over the
last year while voice has
increased by 30 per cent; we
primarily need spectrum.
The rm together with
Airtel had proposed to buy
Essar Telecoms (yuMobiles)
assets in a deal that is dragging
on longer than expected, partly
because of the tough conditions
imposed by the Communica-
tions Authority of Kenya (CAK).
Collymore said while
Safaricom still needs the
spectrum it would get if the deal
went through, it is not prepared
to meet the CAK conditions.
Among the conditions the
rm deems unacceptable is a
requirement to share its
infrastructure and open up its
mobile money system to
competition.
Collymore said the three
operators itself, Airtel and
Essar Telecom had expected a
yes or no answer from CAK.
The regulator is asking too
much for what seems to be a
fairly straightforward transac-
tion. And if anything, there is no
framework to work with if
there was a framework, we would
consider it.
Passive sharing of infrastruc-
ture is largely practiced in the
country, but I do not know
anywhere else in the world
where you have active sharing of
infrastructure.
bizbeat@standardmedia.co.ke
Money grows on trees: Turn Sh15,000 in
seedlings into Sh1.8m in prot in two years
By FRANKLINE SUNDAY
M
ost business ideas arise
from the desire to meet
the need of a particular
customer base looking for a
specic good or service.
However, some businesses
ideas transcend an entrepre-
neurs intended immediate
customer base and have
national impact.
Agro-forestry is one such
venture, and Mr Benson Kanyi
is among a growing number of
Kenyans making a living out of
commercially producing trees.
This group swears by agro-
forestry being a protable and
sustainable business that also
meets a national need.
KNOWLEDGE TRANSFER
The market for trees is
large, and about 18,000 local
farmers owning about two
acres of land each are making a
good living growing and selling
trees, especially the fast-
maturing eucalyptus, says Mr
Kanyi.
Eucalyptus has not had the
best of reputations in recent
years, but most farmers who
had a bad experience with it
planted a variety unsuitable for
their lands soil type and
prevailing climate.
Kanyi is an ofcial of the
Tree Biotechnology Programme
Trust (TBPT), a public and
private sector partnership that
Big returns: Commercial tree farming
holds great potential for entrepreneurs
to cash in, and is good for the country
INVESTMENT IDEAS:
provides knowledge transfer to
farmers and entrepreneurs who
desire to venture into commer-
cial tree planting.
Kenya currently has just
about 46,000 acres under
private commercial tree
farming, which is hardly
enough to feed the booming
demand for timber for con-
struction, biomass energy and
printing.
In addition, the Government
is hard pressed to effect the
rural electrication programme
and get more people onto the
national electricity grid.
EXPORTING JOBS
It is unfortunate that
Kenya, with its good climate
and potential for commercial
tree farming, is still talking
about unemployment when, at
the moment, it is exporting
jobs to neighbouring countries
by importing electricity
transmission poles, says
Kanyi.
Data from the United
Nations Environment Pro-
gramme (Unep) shows that in
2009 and 2010, Kenya lost Sh6.6
billion and Sh5.8 billion,
respectively, to deforestation.
With the countrys water
catchment areas in the Mau
Forest, Mts Kenya and Elgon,
the Aberdares and the Cheran-
ganyi Hills shrinking from
illegal logging and urban
development, it is imperative
Business Beat
>> WEALTH CREATION
Tuesday, May 20, 2014 / The Standard
10
Some of the trees dried up and others were
destroyed by ants, but I still made more
than enough money to cover the loan I
had taken, Habil Onyango
Kenya nds alternative sources
of timber.
For investors like Mr Habil
Onyango, a Nairobi-based
businessman with three acres
under eucalyptus in his home
district of Bondo, the demand
for timber saw him uproot two
acres of maize crop in 2009 to
plant 4,000 eucalyptus seed-
lings.
I had taken my nephews to
visit Kisumus ASK agricultural
show in 2009 and I got a
pamphlet about commercial
tree planting from the Kenya
Forestry Services (KFS) stand,
he says.
Mr Onyangos interest was
piqued, and a week later, he got
an ofcer from KFS to visit his
farm and advise him on the
best tree variety to plant.
I started my tree farm with
1,000 eucalyptus seedlings,
which I bought for Sh15 each,
says Onyango.
I later decided to go all in
and uprooted the maize I had,
which was not doing very well,
and planted 3,000 more
seedlings.
Two years later, his rst
batch of eucalyptus crop was
about 12-feet long and he sold
the trees at a local timber yard
for Sh2,000 each, earning him
Sh1,800, 000.
Some of the trees dried up
and others were destroyed by
ants, but I still made more than
enough money to cover the
loan I had taken to prepare and
fence the land and buy inputs,
he says.
There are several varieties of
eucalyptus trees, and their
seedlings retail at between
Sh15 and Sh25. Some can be
harvested from as early as 18
months, and each trunk sold as
construction material for as
much as Sh3,000.
ELECTRICITY POLES
Others can take up to nine
years to mature fully and fetch
Sh18,000 when sold to Kenya
Power for electricity poles.
There is the Eucalyptus
grandisX camaldurensis, which
is ideal for marginal areas, and
other pure breeds for high yield
areas such as the highlands.
We are soon going to offer
the much more heat-tolerant
hybrid eucalyptus grandisX
urophylla from South Africa
that has been undergoing
testing in Kenya the last six
years, says Kanyi.
This species has a better
diameter, produces more
biomass within a relatively
short time and has more
tolerance to common pests.
For more information on the
companies proled here, email
bizbeat@standardmedia.co.ke
COMPETITION:
Enactus Kenya and Syngenta have announced the launch of
an Africa Agribusiness Competition and have invited youth
across the continent to generate creative business ideas that
would improve the agricultural productivity of crop value
chains.
Through the online platform www.agribiz4africa.com, youth
aged between 18 and 30 from sub-Saharan Africa are invited to
submit 500-word business ideas that will be judged by leading
agribusiness academics from East and West Africa.
The best 25 contestants will each receive a $1,000
(Sh89,500) grant to test the viability of their idea.
The best three among them will then be selected by a
recognised panel of agribusiness leaders and invited to attend
the AGRF Forum on African agriculture to be held in Addis
Ababa, Ethiopia in early September, where they will have a
chance to mingle with some of Africas most inuential thought
leaders and receive due recognition for their ideas.
In recognition of the need to position agriculture as an
attractive occupation for young people, youth with talent in the
creative arts have a special category in which to compete,
dubbed the Agriculture Video Messaging Competition.
Through online submissions on the same website, entrants
are invited to create messages that depict agricultural activities
from farm to fork as cool.
The entries will be judged by leading academics in the
communication eld, and the top 20 entries will be selected.
From these nalists, a judging panel comprising recognised
leaders in the communication and advertising industry will
select the top three, who will also travel to Addis Ababa for the
award ceremony.
All entries have to be submitted by June 10.
The objective of the Syngenta-Enactus Kenya Agribusiness
Competition is to raise awareness among the youth and key
stakeholders in agriculture of the enormous business opportu-
nities within the agricultural value chains across Africa, and to
encourage young people to actively engage in shaping this vital
industry.
It is a great honour for us at Enactus Kenya to play a key
role in positioning African youth as champions in offering
agribusiness solutions for Africa through this competition, said
Mr James Shikwati, Enactus Kenyas country director.
At Syngenta, we recognise the important role young people
in Africa can play in creating wealth and jobs through their own
agribusiness ventures. The energy and creativity that comes
naturally to them can make a great contribution to challenges
like food security, job creation and environmental sustainability.
We are excited to be partnering with Enactus in this
initiative that will generate many business solutions and
develop strong positive messages about African agriculture,
said Mr Kinyua MMbijjewe, Syngentas head of corporate affairs
for Africa and Middle East.
bizbeat@standardmedia.co.ke
Have an agribusiness idea? Write it down
in 500 words for chance to win Sh89,000
Kenya slowly losing its grip on EAC market
TRADE:
Woes: Manufacturers are exporting
fewer goods to the region as new
levies raise shelf price of local goods
By FRANKLINE SUNDAY
T
housands of jobs are on
the line as Kenyas
manufacturers lose their
market share in the East African
Community. This has placed the
countrys dominance of the
regional market which has a
gross domestic product of $80
billion (Sh7 trillion) in
jeopardy.
According to data from
industry experts and the recently
released Economic Survey 2014,
Kenyas dominance in intra-EAC
trade the past year has declined
considerably as the manufactur-
ing sector reels from new double
taxation policies.
SLOWED GROWTH
Kenyan exports to the EAC
region have reduced by a total of
7.4 per cent from about Sh134
billion in 2012 to Sh124 billion in
2013, reads the Economic
Survey.
This is despite the output in
Kenyas manufacturing industry
growing by 4.8 per cent last year,
compared to 3.2 per cent in 2012.
According to the survey,
increased production of
agricultural produce, particularly
in the sugar and horticulture sec-
tors, buoyed Kenyas manufac-
turing industry.
This led to an increased
MANUFACTURING <<
Kenyan exports to the EAC region have
reduced by a total of 7.4 per cent, from
about Sh134 billion in 2012 to Sh124 billion
in 2013, Economic Survery2014
Tuesday, May 20, 2014 / The Standard
11
Business Beat
volume of output valued at a
total Sh1 trillion.
However, a deeper analysis of
the gures, and cross-referenc-
ing trade balances between
Kenya, Uganda, Rwanda and
Tanzania, has Kenyan manufac-
turers worried that they may be
losing ground to their regional
counterparts.
The volume of exports to
Tanzania reduced from Sh46
billion to Sh40 billion, while
exports to Uganda also reduced
from Sh67 billion to Sh65 billion,
and to Rwanda from Sh16 billion
to Sh13 billion, said Ms Phyllis
Wakiaga, the head of policy and
research at the Kenya Associa-
tion of Manufacturers (KAM).
The fact that countries in the
EAC region are some of the
biggest importers of Kenyan
goods, this trend will be
retrogressive to the countrys
manufacturing industry and the
economy.
And while Kenya lost ground
in the regional trading block,
Rwandan and Ugandan manu-
facturers expanded their share in
Kenya, with Ugandan exports to
Kenya increasing from Sh15
billion to Sh16 billion, and
Rwandan imports going up from
Sh822 million to over Sh1 billion.
Ms Wakiaga said this shift
could be part of the reason the
countrys manufacturing sector
integration.
KAM said if the situation
persists, Kenyan manufacturers
might be forced to relocate their
businesses to cheaper destina-
tions like Asia, which could lead
to massive job cuts in the sector.
Due to these disincentives ...
business people who nd the
cost of goods manufactured in
EAC very high now have to
source their goods from
countries like India and China,
thus exporting jobs from the
region, said Wakiaga.
This is not the rst time that
business people in the region are
blaming poor policies for being a
stumbling block to the integra-
tion process.
CONTENTIOUS ISSUE
The high cost of cross-border
calls within the common market
has become a contentious issue,
which has been escalated to East
African heads of state for
intervention.
Currently, it costs nearly 10
times more to call someone in
Kampala from Nairobi compared
to making a similar call to
someone in the United Kingdom,
which is halfway around the
world.
EAC ministers last month
agreed, after years of debate and
bureaucratic wordplay, to
remove all roaming rates and cap
termination charges within
mobile operators in East Africa
by this December.
This is expected to lower the
cost of doing business between
member states, reducing the
underlying suspicions and
boosting the integration process.
fsunday@standardmedia.co.ke
Dip in purchasing power drives demand for milk dispensers
By NICHOLAS WAITATHU
The number of shoppers buying pasteurised
milk from digitised dispensers in supermarkets
has increased. This has seen savvy traders
acquire milk dispensers from external markets,
and seek approval from the Kenya Dairy Board
(KDB), the dairy industry regulator, to sell
treated raw milk.
Mr Geoffrey Gitonga, an entrepreneur in the
sector, said there has been growing demand for
pasteurised milk from the dispensers, particu-
larly in urban areas.
We have been installing machines at
strategic locations in urban centres and
shopping malls. In the last two years, we have
installed more than 40 dispensers. We have
partnered with supermarkets and other
shopkeepers as the demand for sterilised milk
picks up, he said.
Mr Gitonga told Business Beat he shares the
prots equally with supermarkets and retailers
as he is protected from other expenses such as
rent, water and electricity.
He said the demand for milk from the
machines is being dictated by changing
dynamics in the local market, including the need
for quality milk, depressed purchasing power
and a surging population.
The prices for processed milk have increased
since the introduction of VAT last September,
which has prompted consumers to turn to raw
milk. Currently, a litre of raw milk in most
estates costs between Sh50 and Sh55, while a
litre of processed milk averages Sh85.
The dispensing machines are digitised and
sell pasteurised milk, providing an avenue for
customers to get farm fresh produce at an
affordable rate.
We are selling one litre at Sh65, but a
consumer can get as little as 77ml at a cost of
Sh5. All one needs to do is key in the amount
they require, and the product is dispensed,
Gitonga, who procures his machines from Italy,
said.
We are giving consumers who frequent
outlets in estates that sell raw milk that may not
be inspected a safer choice.
Almost half of the milk produced in Kenya is
sold in the informal market raw, and in several
instances, it is contaminated with other
components such as wheat our or vegetable
fats, putting consumers health at risk.
Data from KDB indicates that the country
produces ve billion litres of milk annually, out
of which 2.3 billion litres, or 46 per cent, are
used at the household level, while 2.7 billion
litres reach both local and regional markets.
However, 2.2 billion litres of the 2.7 billion litres
are sold in the informal market.
KDB Managing Director Machira Gichohi,
though he could not conrm the exact number
of licences issued to traders operating dispens-
ing machines, said there has been a signicant
increase in approval requests.
Over and above licensing other milk
machines in the industry, we have approved a
signicant number of dispensers he said when
contacted.
KDB has been accused of poorly regulating
the sector, and has elded numerous consumer
complaints over the prevalence of contaminated
milk in the market.
There is a lot of contaminated milk being
sold in the local market, and especially in urban
areas, under the watch of the dairy board. After
licensing milk bars, they fail to monitor the sale
of the milk, thus risking the lives of millions of
Kenyans depending on raw milk, said Ms Ann
Mwangi of Nairobis Kawangware.
nwaitathu@standardmedia.co.ke
had a poor showing in the last
nancial year, contributing just
8.9 per cent to the countrys GDP.
Kenyas trading woes in the
regional block have been
attributed to new regulations
ratied by the EAC, particularly
Article 25 of the EAC Customs
Union Protocol.
RAW MATERIALS
The article imposes duty on
nished products manufactured
using raw materials benetting
from reduced rates under the
EAC Duty Remission Scheme
and sold in the customs territory.
This means that manufactur-
ers who are using imported raw
materials in their goods can only
export them outside the EAC,
and if they do sell them within
the EAC, they have to pay full
duty on the nished product.
Last year, KAM said the new
levies amount to double taxation
and have raised the shelf price of
Kenyan goods.
With an average growth rate
of over six per cent, the World
Bank has rated the East African
block as one of the fastest-
growing in emerging markets. In
2011, it was cited the best-
performing regional block in
Africa.
However, there have been
concerns from exporters within
the region that protectionist
policies like Article 25 will make
it difcult to open the common
market, reducing the pace of
DEVELOPMENT:
Customers at a milk dispensing machine.
AGRICULTURE:
By JAMES WANZALA
H
e was raised in a
Christian home and
credits this with teaching
him the value of patience, a
virtue that has proved indis-
pensable in his entrepreneurial
journey.
Mr Obadiah Maina, 35, has
risen from the turbulence of
abject poverty in Mathira, Nyeri
County, to set up a nancial
institution.
Three years ago, the idea of
owning a savings and credit
co-operative (Sacco) was not
even in his wildest dreams.
Then, Mr Maina was an
instructor at a Nairobi-based IT
college, and got paid just
enough to get by.
To supplement his income,
he started selling vegetables.
His side business did surpris-
ingly well, and he was soon able
to buy a pickup to ease the
transport of groceries.
After selling groceries for a
while, I sold the pickup. Soon
after, a friend of mine asked me
to lend him money, which he
said he would repay with
Money management: Obadiah Maina set up savings
and credit co-operative when he was 32 to help owners
of micro and small businesses access affordable credit
INVESTMENT:
interest. This got me thinking
that there must be a nancing
need that has been overlooked
by existing institutions, he
said.
He decided to research what
it would take to open a Sacco.
He wanted to enable people
pool their money and lend it on
to individuals in need of
affordable credit.
BIG DREAMS
Further, from his experience
as a grocer, he knew micro and
small enterprises nd it difcult
or too costly to borrow money
from mainstream nancial
institutions, so he felt sure there
would be a market for his
services.
To reect his business
aspirational nature, he named it
Good Life Sacco. He spread the
word about his company, and
within six months, had 30
members. He decided to quit
his job.
I wanted to give my Sacco
my full attention to see it grow
to a fully edged bank in a few
years time, even as we opened
more branches across the
country, Maina said.
Today, three years later, his
rm has over 5,000 registered
members, an asset base of Sh20
million and branches in
Nairobi, Thika, Nyeri and
Nyahururu.
We give loans at 12 per cent
interest, and our members can
request three times the amount
they have saved with us.
Maina added that marketing
his Sacco has not been a
challenge as the Government
has encouraged the co-opera-
tive movement. He is also
working with the Chamber of
Commerce.
INTERNATIONAL INVESTORS
The Chamber of Commerce
has given us networking
opportunities to access funds
from companies and individu-
als abroad who are interested in
investing in Kenya.
To join Good Life Sacco, one
is required to pay a registration
fee of Sh1,000 and must be aged
over 18. The minimum amount
one can contribute monthly is
Sh1,000.
I am trying to change the
By PASCAL MWANDAMBO
Aloe vera has been dubbed the
plant of immortality for its healing
properties and rich nutritional
content.
It has at least six natural antisep-
tics, which are able to kill mold,
bacteria, funguses and viruses, and it
helps with digestive issues and is a
beauty aid.
In Bura village, Taita Taveta County,
Mr Apolinary Ngoma, 60, has come to
appreciate the crop for its monetary
value. While many of his neighbours
struggle to make a living from their
land as prolonged drought hits the
region, Mr Ngoma is sitting pretty.
Ngoma is a member of Mwakibu
Farmers Co-operative Society, which is
determined to make a mark in the
countrys aloe cottage industry. The
society has brought together 320 aloe
farmers from Mwakitau and Bura
villages (hence the name Mwakibu) in
Mwatate Constituency.
Aloe vera has great economic
potential in Taita Taveta County and
has the potential to benet hundreds
of thousands of farmers, Ngoma says.
BARGAINING POWER
The farmer, who is the county aloe
value chain chairman, says the major
varieties being grown by the local
farmers are aloe vera and aloe
secundiora.
We formed the co-operative society
so that we could have greater
bargaining power and get better prices
for our produce. As a result of the
improved incomes, we are now in the
process of purchasing a Sh3 million
aloe processing machine that can turn
aloe sap into aloe jelly, since the latter
fetches higher prices than raw sap.
Governor John Mruttu is helping us
procure the machine, he says.
According to Mr Patrick Muli, the
marketing ofcer for aloe value chain
with the Kenya Agricultural Productiv-
ity Programme (KAPAP), Taita Taveta
farmers have been getting good
returns.
We are buying a litre of aloe sap
for Sh1,000 per litre. We take it to our
cottage industry in Bura where we
produce various aloe products such as
creams, soaps, conditioners and
shampoos, he says.
The aloe products, under the brand
name Morio, have proved popular in
Taita Taveta and the Coast region, and
plans are afoot to set up outlets in Voi,
Mwatate, Wundanyi and Taveta
sub-counties.
According to Mr Muli, more than
900 farmers in Taita Taveta are
growing aloe.
Arid lands need not be condemned
wholesale as unt for agriculture; it is
innovation that holds the key to
sustainability, he says.
Lack of knowledge on the economic
value of aloe coupled with a lack of
processing technology are some of the
challenges that we have had to deal
with, says Ms Eve Kiseu, the aloe
cottage industry project co-ordinator.
But the industry has begun to
show signs of viability and farmers are
making good money from the aloe
plant.
bizbeat@standardmedia.co.ke
Health elixir: Farmers warm up to therapeutic aloe vera
lives of members of our society
by ensuring they get the best
services, said Maina
The Sacco, which has 60
employees, also offers junior
accounts for children, group,
business, xed deposit and
personal accounts, as well as
accounts for private institu-
tions, such as churches.
Informal sector institutions,
like churches, have been left
unattended, yet there is huge
potential lying there, he said
And he is still looking to
improve the sacco.
We will soon launch a
computerised system that will
How friends request
for soft loan gave root
to successful business
Mr Obadiah Maina, 35, the founder of Good Life Sacco, which currently has 60
employees, more than 5,000 members and an asset base of Sh20 million.
[PHOTO: JAMES WANZALA/STANDARD]
allow members check their
account balances wherever they
are. We are working under
Co-operative Bank, which has
given us a lot of guidance.
We are also working closely
with Co-operative Insurance
Company (CIC) to offer medical
cover under Good Life Health,
Maina said.
His advice to young entre-
preneurs?
Be more innovative and use
the talents you have to make a
living, and it will denitely pay
off.
bizbeat@standardmedia.co.ke
Business Beat
12
Tuesday, May 20, 2014 / The Standard
Be more innovative and use the
talents you have to make a living,
and it will denitely pay off,
ObadiahMaina
>> ENTREPRENEURS
By FRANKLINE SUNDAY
K
enyans living in rural
areas may soon access
affordable Internet from
Pasha Centres, or digital
villages, as the Government
moves to revive stalled projects.
The Government has
outsourced some of its advisory
roles in the project to a private
rm that will provide the digital
centres with support services,
the lack of which was cited as
contributing to their failure the
rst time round.
According to Mr Kwame
Shiroya, the ofcial in charge of
the digital villages projects at
the Kenya ICT Authority (ICTA),
the move to revamp the digital
villages project (DVP) is in keep-
ing with the recommendations
of a report by audit rm
Deloitte East Africa, which was
contracted to look into the
factors that caused their
under-performance.
NOVEL INITIATIVE
ICTA has recruited a
business development rm to
develop common minimum
business standards and ways of
operating to enhance efciency
and quality, he said.
In addition, The Youth
Banner, the appointed consul-
tant, will provide a supervisory
role to Pasha managers,
monitoring how they develop
their service offerings and work
with other providers.
Launched in 2010 by the
former ministry of Information
permanent secretary, Dr
Bitange Ndemo, DVP was
considered a novel initiative
that would help bridge the
technology divide in the
country.
The idea was to have
information hubs set up in rural
areas where users could access
various Internet services,
including email, web browsing,
Internet calls and IT learning.
The Pasha Centres were
supposed to be run by entrepre-
neurs who were to get subsi-
State breathes new life into digital villages
Bridging divide: Private
players contracted to help
provide support services
that will enable Kenyans in
rural areas access Internet
BROADBAND SERVICES:
dised loans from the Govern-
ment (at 10 per cent interest)
through a revolving fund.
The landing of multiple
undersea bre cables was
expected to further boost
broadband penetration and
facilitate Internet connection in
rural areas.
OVERSIMPLIFIED
It later emerged that the
Government had greatly
oversimplied the execution of
the project, and four years later,
the anticipated benets to rural
residents are yet to be met as
most Pasha Centres are unable
to break even or even provide
their core services.
Pasha Centres are unable to
generate adequate revenues
because they have an undiversi-
ed portfolio of services, said
Mr Shiroya.
In addition, the high costs
of operations and underutilised
equipment limits their nancial
capacity.
Others, however, attribute
the failure of the DVP to a shaky
shared-responsibility formula
between entrepreneurs and the
Government.
The Pasha Centres are a
very strategic initiative, and
they have given some young
people opportunities to do
good IT-based business, said
Mr Sam Gichuru, the co-found-
er and CEO of incubation hub
Nailab.
However, the Government
also needs to do its part in
terms of making it possible for
Pasha managers to run their
enterprises effectively. This
includes the provision of
essential services like electricity
and broadband connectivity,
which is quite capital-intensive
and should not be the duty of
the entrepreneurs, but the
Government.
A recent study conducted by
the Communications Authority
of Kenya (CAK) found that 16
per cent and 88 per cent of
sub-locations in the country do
not have access to voice and
data services, respectively.
ACCESS GAPS
Some of these areas with
access gaps can neither sustain
the demand nor supply for IT
services, therefore, there is no
commercial viability that would
prompt service providers to
make investments in those
regions.
However, there is market
sufciency in some other areas
where the demand and supply
of IT services can work and
investment is viable, but the
opportunities are yet to be
exploited.
The Government is trying,
under the recently released
National Broadband Strategy, to
facilitate the sealing of these
gaps and allow universal access
to broadband.
But with the Government
unable to nance the more than
Sh70 billion required to set up
base stations for voice and data
services across the country, the
digital divide looks set to
remain wide, at least in the
short and medium term.
fsunday@standardmedia.co.ke
TECHSPHERE <<
Pasha Centres are unable to generate
adequate revenues because they have
an undiversied portfolio of services,
Kwama Shiroya
Tuesday, May 20, 2014 / The Standard
13
Business Beat
Business Beat
14
Tuesday, May 20, 2014 / The Standard
By JACKSON OKOTH
T
here are just under two weeks to go
before the May 31 deadline when
commercial banks are expected to have
issued new chip and pin cards to their
customers. After this date, the liability for any
fraudulent transaction carried out on a
customers magnetic stripe card shall be borne
by the issuing bank.
However, the transition from the old cards
to the more secure Europay MasterCard Visa
(EMV) cards has not been as seamless as
many had hoped.
Most bank outlets are now characterised by
long queues of customers lining up to change
their ATM cards as several institutions have
begun distributing the new payment cards.
My bank is giving us the new cards on the
spot, so the queues are not necessarily moving
quickly, but at least you know that by the time
it is your turn, youll get the upgraded card
and you dont have to visit the branch later
on, said James Omondi.
But not all banks are able to do so.
We have received feedback from some
banks that they are experiencing challenges in
getting the cards issued, mainly due to delays
in certication as well as logistical concerns
around importing and personalising the new
cards, said Mr Fidelis Muia, the director of
technical services at Kenya Bankers Associa-
tion (KBA).
CERTIFICATION COSTS
The costs have also been quite an under-
taking. EMV certication costs between $6,000
and $10,000 (Sh525,000 and Sh875,000) per
institution. System upgrades cost much more
and vary depending on the vendor.
A number of banks have had to outsource
their card systems to third-party processors
due to the cost implications, while others have
had to procure completely new card manage-
ment systems. The new chip and pin cards are
more expensive than the old magnetic stripe
cards, said Mr Muia.
The migration to the EMV standard is,
therefore, expected to continue beyond this
month.
We must appreciate the steps that the
relevant entities need to go through to be
compliant. It is important for the public to
understand the complexity of the work that
goes into ensuring EMV compliance, said Mr
Jabu Basopo, the Visa country manager for
Southern and East Africa.
Before the move was started, KBAs
operations and technical services committee
held a series of workshops for member banks,
during which its members agreed to stan-
dardise the migration.
First, banks had to upgrade their auto-
mated teller machines (ATMs) and point of
sale (POS) terminals to ensure they are
capable of handling EMV transactions to get
them certied.
After this, the institutions had to procure
the plastic for the cards, and then get a
different vendor to do the actual personalisa-
tion or production of the card to enable it
carry customer details.
It is important to appreciate that there are
lots of players involved in this process, and
planning is key, said Mr Basopo.
He added that migration to EMV is a
journey that requires patience, and distribu-
tion of the cards to consumers may take some
time to nalise.
Visa ofcials anticipate that the process
Transition hitches as
Security: Long queues
in banking halls and
delays in issuance of
compliance certicates
slow down process
FIGHTING FRAUD:
>> EMV MIGRATION
3 months
Amount of time Visa ofcials anticipate
it will take banks to issue the more
secure chip cards to all customers.
We
must
appreciate
the steps
that the
relevant
entities
need to go
through
to be
compliant.
It is
important
for the
public to
under-
stand the
complexity
of the
work that
goes into
ensuring
EMV comp-
liance.
EMV MIGRATION <<
A number of banks have had to outsource
their card systems to third-party processors
due to the cost implications,
Fidelis Muia
Tuesday, May 20, 2014 / The Standard
15
Business Beat
migration to chip ATM cards nears tail end
may take up to three months and is depen-
dent on the availability of the consumer.
The process should not be seen as an
inconvenience to banks or customers. The
long-term benets of EMV technology cannot
be overemphasised. EMV chip cards are
embedded with a multifunctional microchip
that has superior security features that are
unavailable on the magnetic stripe. Chip
technology, both embedded in the card and
the acceptance device, increases the safety
and security of transactions, said Basopo.
These security features include strong
authentication levels to validate the card-
holder, the card and the transaction. This
makes chip technology the most secure
instrument for card payments. The microchip
embedded in the plastic is virtually impos-
sible to replicate, a deterrent to fraudsters.
In many cases of fraud, information on
magnetic stripe cards is captured via a simple
device that skims the strip. The data can then
be cloned onto a blank card and used to make
fraudulent purchases or withdrawals.
BUSINESS OPPORTUNITIES
Banks have invested heavily to issue the
compliant chip cards and upgrade their
systems to protect deposits.
We see any additional investment in
security as an opportunity for banks to
enhance business opportunities through
additional channels, grow cross-border
transactions through renewed condence in
the payment system, and reduce losses due to
counterfeit fraud, said Basopo.
The traditional magnetic stripe cards are
slowly being phased out on a global scale.
We cannot afford to be left behind
because a weak system here is a threat to the
entire global nancial system. We are proud
that Kenya is currently one of the few
countries in Africa that have adopted the EMV
compliance standard, placing it at par with
other leading countries in enhancing fraud
mitigation systems, said Mr Habil Olaka,
KBAs chief executive.
We will run the nal part of our series on the
EMV migration next week. Email questions or
comments to bizbeat@standardmedia.co.ke
Business Beat
>> NSE COMMENTARY
Tuesday, May 20 2014 / The Standard
16
NSE 20 Share Index +0.1% Dow Jones +44.50 (+0.27%) Nasdaq +21.30 (+0.52%) S&P 500 +7.01 (+0.37%) Oil +0.67% US$ +0.01%
4,967.57 16,491.31 4,090.59 1,877.86 $102.18 1 EUR = $ 1.3696
Source: SIB
Equity turnover retreated 18 per cent to Sh5 billion
from last weeks all-year high of Sh6.1 billion.
Foreign investors remained net sellers,
StandardInvestment Bank
Stock Price % week on week % year to date
Safaricom 12.85 0.0% 18.4%
Equity Bank 39.00 -4.9% 26.8%
EABL 297.00 -0.7% 2.4%
KCB 46.75 -4.1% -1.1%
Stock Price % week on week % year to date
Kakuzi 132.00 13.8% 38.9%
Kenya Orchards 8.60 8.9% 186.7%
Limuru Tea 670.00 8.1% 34.0%
NBK 33.50 7.2% 16.5%
Stock Price % week on week % year to date
NIC Bank 59.50 -6.3% -0.8%
Scangroup 46.75 -4.1% -3.1%
Carbacid 33.25 -2.9% -35.4%
Sasini 16.85 -2.9% 15.0%
Kenyan
coffee prices
fell 5.2 per
cent (to
Sh15,560 for
a 50kg bag)
on the back
of reduced
demand
as buyers
already
have enough
stockpiles.
Sasini is
the most
exposed
on coffee
among the
agricultural
rms.
The NSE 20 Share Index gained 0.1 per cent
from the previous week, while the NSE All Share
Index went down 0.5 per cent.
Equity turnover retreated 18 per cent to Sh5
billion from the previous weeks all-year high of
Sh6.1 billion. Foreign investors remained net
sellers for a second straight week, while their
activity increased by 27 per cent.
Accounting for the highest net inows for
the second straight week, Equity Bank was
among the top movers. The bank shed 4.9 per
cent to Sh39 on prot taking, retreating after
touching a high of Sh42.50.
Safaricom was unchanged during the week
after announcing FY14 results to March, with a
31.2 per cent year on year jump in earnings per
share (EPS). The Government has a deal with
the telco in which Safaricom will develop a
public safety communication and surveillance
system worth Sh14.9 billion (at cost) in
exchange for spectrum of equivalent value,
specically 4G, when it is made available.
Ahead of books closure at the end of this
month, Kakuzi recorded a new 52-week high of
Sh132 (+13.8 per cent, week on week) but on
thin volumes. The company is holding its AGM
today.
Agricultural rm Limuru Tea also set a new
52-week high of Sh670 (+8.1 per cent, week on
week), while tea and coffee producer Sasini
declined 2.9 per cent. Kenyan coffee prices fell
in the week (-5.2 per cent to $178.1 (Sh15,560)
for a 50kg bag) on the back of reduced demand
as buyers already have enough stockpiles.
Sasini is the most exposed on coffee among the
agricultural rms.
Liberty Insurance will hold its AGM tomor-
row, the same day of books closure (scrip
dividend of Sh1; scrip issue price of Sh15.90).
Standard Investment Bank
Top Gainers
Top Movers
Top Losers
NSE All Share Index 151.15
Equity turnover Sh972.4 billion
Total shares traded 70,755,700
Market capitalisation Sh2.1 trillion
Statistics as at May 16, 2014
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