Business Daily

Radar Screen
Page 3
Governor Kidero has his work cut out for him
Ideas & Debate

Page 9
Chinas unconditional aid for No need to attend extra African countries a big myth school to be successful
Page 27
Life
NO. 1551
TUESDAY, APRIL 2, 2013
WWW.BDAFRICA.COM KSH50 | TZ SH 1,700 | UGSH2,700 | RFr900
Investos ean millions fom owneship of NSE-listed ms

Stock rally in the past six months also boosts paper billionaires worth by large margins
Touism leads ace fo peace dividend afte a calm vote

The tourism industry may be the swift winner from the election of Uhuru Kenyatta, the owner of hotels and a vast business empire, as East Africas biggest economy seeks to benet from a vote that avoided a re-run of bloodshed of ve years ago. Tourism is a vital sector for the nation of more than 40 million people and was one of the worst hit after a disputed presidential poll in December 2007 led to weeks of bloodletting, scaring away investors and tourists by the planeload. This time, the battle over who won the vote was fought by lawyers instead of armed thugs on the streets. A reformed Judiciary that reviewed the case commands more respect than it ever did, a victory for the rule of law that could also lift business condence. Besides seeking more visitors, Kenya wants oil and gas investment to develop hydrocarbon discoveries, funds for a major new port in Lamu and other infrastructure, and investors to boost the nations position as a regional manufacturing hub. Kenyan investment plans previously put on hold because of election-related uncertainty are now likely to be realised, said Standard Chartered economist Razia Khan. Foreign investment may take a while longer to see a meaningful increase PEACE GAINS, Page 4
JAMES MWANGI
CEO, EQUITY BANK
JAMES NDEGWA
2012 DIVIDEND:
ICEA LION GROUP CHAIRMAN
SUNIL SHAH
MR PETER MUNGA
CHAIRMAN, EQUITY BANK
KCB FOUNDATION DIRECTOR
2012 DIVIDEND:
Sh159m
Sh135.7m
Investor
James Mwangi Sunil Shah The Ndegwas Bharat Thakrar Gideon Muriuki Benson Wairegi Peter Munga
2012 DIVIDEND:
Sh107.3m
159.5 107.3 135.7 31 30 25 28
2012 DIVIDEND:
Sh28m
BY VICTOR JUMA
Dividends declared for 2012 nancial year

Company
Equity Bank KCB NIC Bank Scangroup Co-op Bank Britam Equity Bank
A group of billionaire investors have entered a dividend windfall season riding on last years record prots by companies listed on the Nairobi Securities Exchange (NSE) companies, the latest nancial reports indicate. High-level protability, the highest since the 2008 global nancial crisis, have seen many of the blue chip companies raise their dividend payouts, adding millions of shillings to the take-home of top shareholders. The club of shareholders set to rake in millions of
Dividend (Sh mn)
SOURCE: COMPANY REPORTS
shillings from their investments in the listed rms
includes Sunil Shah, Equity Bank chairman Peter Munga and the family of former Central Bank of Kenya governor Phillip Ndegwa. The list also includes a select group of CEOs with big stakes in companies they manage: Bharat Thakrar of Scangroup, Equity Banks James Mwangi, Gideon Muriuki of Co-op Bank and Benson Wairegi of British American Investment Company (Britak). Besides the dividend harvest, these investors have seen their paper wealth rise signicantly as share prices rose by double digits in the past six months. There has been a sig- DIVIDEND PAYOUTS, Page 4
PICTURES: FILE
NEWS INDEPTH
Rare sh species dwindle as human activities take toll in Nile basin

Pages 12-13
BRIEFING
UN report sees 6pc growth for E. Africa

Economic growth in East Africa is expected to remain among the fastest in Africa this year aided by natural resource discoveries, improved agricultural performance, and economic diversification. Page 5
Helios to maintain stake in Equity Bank

Private equity firm Helios EB Investors has made a U-turn over the pledge to reduce its stake in Equity Bank and committed to remain the largest shareholder in the lender on improved returns. Page 8
Unaitas shelves plans EABL stock to come to list at Nairobi bourse under pressure
Unaitas Sacco has announced that it will proceed with its ambitious expansion plan even as it ditched the proposal to list on the Nairobi Securities Exchange.
Page 19
East African Breweries Limited may be currently overvalued by more than Sh100 a share, taking into account the recent financial results and the expectations for this year, analysts say.
Page 20
BUSINESS DAILY | Tuesday April 2, 2013
TOP NEWS
Electicity cost to go up on inceased fuel, foex chages

ECONOMY Long term picture not enticing
Flood chaos
given Kenya Powers push for tariff review

The increase in electricity costs contributed to a 0.96 per cent rise in Electricity consumers face higher utility costs for the average Kenyan bills for the month of March followhousehold in March, according to ing increase in fuel prices and a higher data released by the Kenya Bureau of forex charge. Statistics (KNBS). The forex charge went up to Sh1.69 Housing, water, electricity, gas per KWh in March from Februarys and other fuels index went up by Sh1.04, while the fuel adjustment cost 0.96 per cent between February and went up to Sh6.21 from Sh5.38. March 2013. This increase was mainly This means an increase in the cost caused by higher costs of electricity, of electricity for 50 units or KWh from kerosene, liqueed petroleum gas an average of Sh564 in February to (LPG) and other cooking fuels, said KNBS in the monthly Consumer Price Sh638 in March, representing a 13.2 Index and Ination Rate report for per cent increase. March. For those consuming an average Despite the shortof 200 units per month, the cost of power went up term reprieve expectfrom Sh3,042 to Sh3,338 ed with the rainfall, Housing, wate, the long-term picture in March. The cost of fuel was electicity, gas and is less enticing for industries and home revised upwards by the othe fuels index Energy Regulatory Comusers with more went up by 0.96 pe thermal generators mission (ERC) on March 14, with the price of diecoming on-stream cent sel going up by Sh2.27 a and Kenya Power litre. This was attributed KENYA BUREAU OF STATISTICS REPORT pushing for a tari to a weak shilling during review. Under the proposthe December/January als, domestic consumers of less than imports window, coupled with an 50 units per month would pay a xed increase in crude oil prices. The monthly cost of electricity had charge of Sh200, up from the current reduced marginally since December, Sh120, while the cost of every unit following optimum power generation would go up from Sh2 to Sh5.1. from hydro sources, which reduced Those consuming between 50 and 1,500 units would see their energy reliance on thermal electricity gencharge rise to Sh11.4 from the cureration. Kenyas interconnected installed rent Sh8.1 per unit, while for small commercial users, the energy charge capacity stood at 1,672MW in Januwould rise from Sh8.96 to Sh13.66 per ary, of which 120MW is from the exunit. Another upward review of the pensive emergency thermal power. A further 1,248MW is projected to be xed rate would be eected on July 1 to injected into the grid by 2015, from Sh250 and later to Sh300 in 2015. both state-owned and independent thermal power producers. cmwaniki@ke.nationmedia.com
BY CHARLES MWANIKI
Ms Jane Awuor and her co-wife Jane Achieng ponder their next move after ood waters swept through their home in Kojiem village in Nyando. Deaths and loss of property have been reported as people are displaced by the rains pounding most parts of the country. TOM OTIENO
Kisumu
Vandalism leaves Naiobi esidents in the dak

BY EVELYN SITUMA
Power supplies for consumers in Nairobi were cut o during Easter following an outage on the pre-paid electricity vending system. Kenya Power said the fault that left households and businesses with losses, was caused by vandalism on its cable system in the city. The problem aected data and communication connections hosted by Safaricom. The vending systems, which are also on this line were aected, said Migwi Theuri, Kenya Powers communication manager in a telephone interview. Mr Migwi said the bre lines were cut in Westlands on Friday and at Museum Hill roundabout on Saturday. The cut cables at the Museum Hill roundabout hampered transmis-
Maintenance work at a power line. FILE
sion of data and communication to Stima Plaza, said Mr Migwi. Emergency call services to call centres were also hindered.
Maintenance issues
The company is calling on Nairobi residents still experiencing power outages or system failure to contact
branch business heads for help. They should be able to call branch business heads so that they are attended to. Some (clients) get problems and assume Kenya Power will know. It could be a localised problem (within an estate), said Mr Migwi. Kenya Power uses Safaricom system provided by Jamii Telcom. The power distributor had on Saturday sent text communication to consumers, after numerous complaints, attributing the problem to emergency maintenance. On Saturday and Sunday we had an upgrade of our IT system but it was about the same time the vandalism took place, said Mr Migwi. Kenya Power rolled out its prepaid meters in 2012. The company targets tting 520,000 prepaid meters by mid this year at a cost of Sh5.8 billion.
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Highs Lows
Index to companies
This index of businesses mentioned in todays issue of the Business Daily is intended to include all signicant references to companies.
CCN ..................................................3 UN.....................................................3 KTB.................................................. 4 ICC................................................... 4 Tarda ................................................5 Uneca...............................................5 KAHC................................................6 MCTA................................................6 NCPB ................................................6 Honda ..............................................7 Tata ..................................................7 KEMRI...............................................7 KPWAU.............................................7 Equity...............................................7 Lonrho..............................................7 National Bank................................. 8 NSSF................................................ 8 CMC Holding................................... 8 JLR ................................................... 8 KCB.................................................. 8 Barclays.......................................... 8
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Tuesday April 2, 2013 | BUSINESS DAILY
TOP NEWS
RADAR SCREEN
D AV I D M U G U N
Goveno Kideo has his wok cut out fo him A

rguably East Africas commercial capital, the role of Nairobi in setting the tempo of political and economic activity in the region cannot be over-emphasised. Judging by the volume of trac at Jomo Kenyatta International Airport and the port of Mombasa, Kenya is the uncontested gateway to East Africa by air and sea. Nairobi is also the most established city in terms of infrastructure and human capital. Its success in maintaining this leverage, however, lies in the county and national governments working in tandem to deepen Kenyas stranglehold on these factors of comparative advantage. To understand the prime position that the city occupies in the region, consider this. Were Nairobi a country, it would be the richest in East Africa accounting as it is for 60 per cent of Kenyas Sh3.7 trillion GDP by far the largest in the region. To crown it all, Nairobi now hosts a newly upgraded United Nations oce, which now has an Assembly status, making it the third of three UN headquarters in the world (after New York and Geneva) and the only one in the developing world.
Greater attention
These realities should lead us to the conclusion that for its importance, Nairobi deserves greater attention. Nairobi deserves a business-like environment where people work to eliminate the negative eects of the successive administrations that failed the city in the past. For its new UN diplomatic role, Nairobi should have an environmental agenda betting an international capital. This will in turn make it easier to do business not only in the city but also in the country and region. Whatever Governor Evans Kidero and the new government have on the list of things to do, they must add the following: They must be alive to the dangers of air pollution arising from motorised transport. Many of the vehicles on our roads are not roadworthy they emit dangerous levels of harmful smoke and cause preventable accidents because they are not properly serviced and maintained. Other jurisdictions have found an ingenious solution to deal with this menace. If your car has no evidence of service, has bad tyres or emits excessive smoke, then the fuel attendants at the gas station simply never fuel your car. In such circumstances, break-down vehicles are at hand to tow away your car to a garage. Our fuel stations, being registered legal business entities within Kenya, have a legal duty to protect the environment. The National Environmental Management Authority (Nema) and the
BACKGROUND
Kenyas nerve centre
Nairobi is Kenyas administrative, communications, and economic centre. The county has a large industrial complex which manufactures automobiles, food products, beverages, construction materials, cigarettes, chemicals, textiles, clothing, glass, and furniture, among others. It is linked by road with the rest of Kenya and by railroad with Mombasa on the Indian Ocean coast and Uganda throught western Kenya.
Nairobi Governor Evans Kidero arrives for his swearing-in ceremony at Uhuru Park on March 27, 2013. FILE
of treating dust-borne sicknesses and you have a very strong case for spending some resources and time on this. As the old adage goes prevention is better than cure. The place to start is holding property developers and owners accountable. Property development must not be considered complete without covering bare surfaces, including roads and footpaths. Dr Kidero must also go for the aesthetics and ensure that Nairobi has no poorly maintained buildings and that property owners refurbish and maintain them to set standards. This is a low hanging fruit for the new county government. All it has to do is re-introduce the bylaws governing paintworks on buildings. In many sections of Nairobi, one is often confronted by bad-looking buildings with rusted rooftops and dirty walls that have not been maintained for years. A fresh coat of paint will ensure that ours is a bright-looking city, besides creating thousands of jobs for painters and a big market for paint makers that themselves employ thousands of people. Yet the elephant in the house remains insecurity whose impact on business is immense and enduring. Insecurity must be dealt a blow with speed and nality. I am not a security expert but rather a victim whom at gunpoint lost a phone, wedding band and money. Digital technology and a convergence of data bases with citizens biometric details will go a long way in stemming crime. The county government must demand that all security personnel be digitally compliant and use close circuit cameras to monitor activity round the clock. Dr Kidero will soon nd out that to realise his goals for Nairobi, he must deal with the outbreak and continued proliferation of indiscipline in nearly all facets of life in the city. One could say restoring some sense of discipline among city residents is the silver bullet that will help eliminate many of the problems that Nairobi faces as a growing city of three million residents. For a start, the new county government should just bring back and strictly enforce the Michuki rules. Too many lives are being lost on our roads and with it goes specialised human skills that have taken us years to nurture. The rules that aimed to tame rogue drivers, worked well with the late Michuki as Transport minister. This was simply because there was the will to enforce them and there is no reason this cannot be done again. The city authorities must also
adapt Rwanda-like clean-up exercise monthly, so that people identify with both the results of a clean environment and eorts to keep the city clean. In Kigali, you do not need to shine your shoes because there is no dust and mud from pot holes. Figure out the nancial savings to the county just by mobilising over a million adults monthly in a clean-up exercise. If we cannot keep Nairobi clean, then perhaps let us relocate Unep to Kigali. Revive all the health centres that have hitherto remained dilapidated. Some time in the past, Nairobi had a reasonable managed health centre managed by City Council in every jurisdiction. The buildings are still there but in a state of disrepair. Full revival will go a long way in helping residents to cope with the high cost of treatment in private hospitals. In many of the low-income neighbourhoods, access to aordable quality health services remains only a pipe dream. Yet the basic infrastructure (found in the defunct Nairobi City Council dispensaries) exists. All that is needed is to refurbish these facilities, sta them with well-paid professionals and supply them with drugs and medical equipment regularly. And in the interest of the thousands of people who earn a living from micro and small enterprises, Dr Kidero will have to apply his management skills in reforming the city inspectorate department that wing of his government that is in charge of security (council askaris) but are better known for their predatory, even criminal activities. These askaris could do with additional training in etiquette and professionalism.
Break cartels
He must break the cartels that have invested in old Land Rovers waiting at every intersection to tow away cars that have been impounded by police and the askaris merely to siphon money from the owners. If anything, the status of the County Security force should be made to be the envy of the national police force. If it works well, every child wishing to be a soldier would wish to work for Nairobi County. Finally to keep the reform agenda on track, Dr Kidero must put Nairobi on the team of African cities that will participate in an annual competition on an agreed criterion. This will add purpose to the job and keep the team on toes to attaining a truly global status. Mr Mugun is the Author of the books How to Undo Lifes Airlocks and 10 Critical Success Answers for SMEs. He is presently Director of Special Projects at Strathmore Business School. @DavidMugun
Nairobi county administration must punish petroleum stations that fuel faulty vehicles. A simple gadget tells you about the level of smoke emission while a match stick head is enough to tell if your tyres are worn out. If the head cannot be fully lodged between your tyre threads, then yours are worn out. Then there is the very manageable irritant in dust. Ever wondered why in London or New York, there is no need to polish your shoes? Every bare surface has been covered by either concrete or grass. There is a direct relationship between dust-related infections and bare surfaces that generate dust. Managing dust would also signicantly reduce the cost of cleaning oces and schools. Add to this the cost
TOP NEWS
Kenyas billionaies club sees fotunes ise in NSE windfall

From Page 1
nicant improvement their stake in the bank, harvesting bilin dividends declared lions of shillings in the process. Equity, however, remains one of the because of last years good performance, said Eric Musau, an analyst at most protable rms at the NSE whose dividend payout policy amounts to milStandard Investment Bank. Mr Musau reckons that banks lions of shillings for top owners. The bank posted the second largest which beneted from high interest rates topped the list of corporate net prot of Sh12 billion last year comgenerosity to shareholders followed by pared to Sh10.3 billion the year before, a few manufacturers such as British representing a 16.5 per cent growth. American Tobacco. KCB topped the protability chat James Mwangi, the Equity Bank with Sh12.2 billion compared to Sh10.9 billion in 2011, allowing its chief executive, tops the top investors to earn millist of dividend harvesters with a take-home of Sh159.5 Thee has been lions of shillings in divimillion for his 3.45 per cent dends. a signicant stake in the bank that is Sunil Shah the biggest individual shareholder paying its owners Sh1.25 impovement at KCB will earn Sh107.3 a share for the year ended in dividends December 2012. The payout million for his 56.4 million represents a 25 per cent in- declaed because shares in the bank that crement from the previous of last yeas good raised its dividend payout years Sh1 per share. to Sh1.9 per share from the pefomance Sh1.85 the previous year. Mr Mwangi is also one The 56.4 million KCB of the wealthiest individuERIC MUSAU al investors at the Nairobi STANDARD INVESTMENT BANK shares held by Mr Sunil bourse with 27.6 million are currently worth Sh2.3 shares in Equity Bank currently worth billion, putting him rmly in the club Sh4.2 billion. of Kenyas paper billionaires. Equity Bank chairman Peter Munga Fellow investors in KCB Kanaksinh takes home Sh28 million for his 22.4 Karsandas and Sandip Babla are set to million shares in the bank where his earn a combined dividend of Sh91.9 milstake is now valued at Sh745.3 million for their ownership of 48.3 million shares in Kenyas biggest bank. lion. The value of the two little-known inIn the past couple of years, Equity Bank founders, including the family of vestors now stands at Sh1.9 billion. the late Nelson Muguku, have reduced The Ndegwa family, which is among
Britam Groups managing director Benson Wairegi (right) and Sunil Sanger of Orion Advisory Services Limited, an investor, peruse a document during the release of Britams full year results for the period ending December, 31 2012 recently. FILE the top shareholders at NIC Bank, is set to earn Sh135.7 million for the 24.9 per cent stake besides the rise in their paper wealth to Sh7 billion based on the lenders share price of Sh52. The family, which has a 25 per cent shareholding in the bank the maximum individuals are allowed in banking institutions has defended that position by taking up its full rights in the past rights issues. NIC posted a net prot of Sh3 billion last year compared to Sh2.7 billion the year before. Co-op Banks chief executive Gideon Muriuki remains in the list of top dividend harvesters with a total of Sh30 million for his 1.4 per cent stake in the lender where his shareholding is currently valued at Sh980.3 million. Co-op Banks net prot rose 45.2 per cent to Sh7.7 billion last year compared to Sh5.3 billion in 2011, helped by robust growth in interest income. The banks stellar performance is linked to the high interest rate environment that widened interest margins against the backdrop of minimal loan defaults, helping the lenders to grow prot even as new borrowings slowed down. KCB, Equity, Barclays and Co-operative Banks loan books expanded by 5.2 per cent to 19 per cent last year but their interest income rose by a wider margin of 8.8 per cent to 66 per cent culminating in higher prots. KCB said its interest margin stood at 10.9 per cent last year, up from 10.1 per cent in 2011 while Equity Banks interest margin rose to an all-time high of 13 per cent in the quarter ended December 2012. Commercial banks raised their lending rates to above 24 per cent last year compared to an average of 14 per cent in 2011, earning them higher returns on new and old loans that were re-priced upwards. The lenders raised their interest rates in reaction to the Central Banks decision to tighten liquidity in response to runaway ination in the last quarter of 2011. The nancial results released last month show that investors in other services companies are also on the road to a dividend boom, promising the top shareholders millions of shil-
lings in dividend earnings. The list of top dividend earners in non-bank rms includes Scangroups CEO Bharat Thakrar who is set to earn Sh31 million for his 18.19 per cent stake in the company. This is despite the fact that the marketing services rm cut its dividend payout to Sh0.6 from Sh0.7 per share in 2011 on reduced prots. Scangroups net prot dropped to Sh752 million in the year ended December compared to Sh911.1 million the year before on what the rm attributed to setup costs in West Africa. Mr Bharats stake in the company is now valued at Sh3.7 billion after a 23.2 per cent rise in the stock price to Sh72. The stock market, which has rallied since January, has proven itself as a key route to wealth, especially for investors with millions of shares. The benchmark NSE 20 Share Index gained more than 200 points after the March 4 election to stand at 4861 on Thursday. Weekly trading volumes have dropped since the election in what analysts attribute to illiquidity caused by sustained demand for shares. We have not seen a change in demand for shares. What is happening is that most investors are holding their stocks and this has seen a drop in trading volumes, said Francis Mwangi, an analyst at Standard Investment Bank. Mr Mwangi reckons that the sharp rally in the equities market despite the election season is a signal of the faith investors have in the market as a protable investment option. vjuma@ke.nationmedia.com
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Touism secto in pole position to enjoy peace dividend

but that should also start to rise in the near-term, she said. But caution remains in the fact that old problems that annoy business, such as corruption and red tape, did not change with Saturdays ruling that conrmed Mr Kenyatta as having won in a fair vote against Prime Minister Raila Odinga. The Kenyatta presidency, however, comes with additional baggage. He is charged with crimes against humanity at the International Criminal Court (ICC) an indictment that complicates his personal relations with Western states, although diplomats talk of a pragmatic approach that should avoid harming trade ties. There is still the broader uncertainty of the ICC case. Whether the charges stand will be closely watched, Ms Khan said.
From Page1
Yet from the small-time shopkeeper who ran down stocks for fear of renewed looting to ve-star hotel executives fretting about reservations, the nightmare of another spasm of violence has been averted, with just pockets of unrest marring the calm. We have clients who were watching to see the outcome of the petition and the reaction that would follow, said Mohammed Hersi of luxury Whitesands hotel, Mombasas biggest resort. Now we are good to go. We denitely will have more bookings. Two people were killed when dozens of protesters took to the streets in the western city of Kisumu, an Odinga stronghold. But in Mombasa, another base of Odinga support, a desire to move on outweighed disappointment that their man lost. Some businesses said 51-year-old mR Kenyatta, whose family owns the
Heritage Group of hotels that range from a beach resort in Mombasa to an Indian Ocean island hideaway in Lamu, could be a boon for tourism. His familys empire extends to dairies, banking and education. When Kenyatta was chairman of Kenya Tourism Board (KTB), he was someone we could talk to, said Suresh Sofat, the chief executive of Somak Travel, one of Kenyas biggest tour rms. He understood tourism and was ghting hard for us all. Challenges remain, not least how Mr Kenyatta will juggle a case in The Hague while running a country. He has insisted he can do both and says he will cooperate with the court to clear his name, welcome words for Western states that have a policy of holding only essential contacts with ICC indictees. Aides of Mr Kenyatta, son of Kenyas founding president, talk of looking east
if Western nations spurn their president. But both sides may work hard to avoid that. Chinese imports may almost match those from Europe but 26 per cent of Kenyan exports in 2011 headed to the European Union compared to 0.7 per cent that went to China. We have been partners for many years, we will continue to be partners for many years, said one European diplomat in Nairobi, adding that it was not realistic for Kenya to swiftly switch its economy towards China. Chinese inuence has grown sharply across Africa, Western rms may push to ensure their position in Kenya is not eroded. Big names in the country include Diageo, Vodafone , Tullow and Canadas Simba Energy. Kenyas economy took a pummelling ve years ago when weeks of post-election violence led to the killing of more than 1,200 people. About 350,000 peo-
ple were displaced from their homes. Growth has still not returned to the 7 per cent level it reached in 2007 before the bloodbath began. The economy grew 4.5 to 5 per cent in 2012, the International Monetary Fund estimated, forecasting before the election that it could reach at least 5.5 to 6 per cent in 2013. Prospects could now improve further. But it still puts Kenya behind its African neighbours, which were equally concerned by the vote because their economies were hit after 2007 when trade routes through Kenya shutdown. We expect to see increased capital inows and especially foreign direct investment, Finance Minister Robinson Githae said soon after Kenyatta was declared winner on March 9. -REUTERS See related stories on page 6
ECONOMY & POLITICS

NEWS I REVIEWS I ANALYSIS
UN epot sees 6pc economic gowth fo E Afica

GROWTH Agricultural output, exports
and minerals to boost regions income

Report 2013. Consolidating peace and ensuring political Economic growth in East Africa, stability in the Democratic Reincluding Kenya, is expected to public of Congo and Somalia remain among the fastest in Afwill help to improve prospects rica this year aided by natural in the sub region, resource discoveries, improved East Africa, as well as the agricultural performance, and Horn of the continent, has become a hot spot for oil and gas economic diversication, a new report showed. exploration in recent years, The United Nations Ecospurred by new nds in counnomic Commission for Africa tries such as Kenya, Uganda, (Uneca) said the region is exTanzania and Mozambique. Exploration interest in Kenpected to realise a six per cent ya has particularly surged since growth this year compared to the country announced a year 5.6 per cent in 2012the secago its rst oil strike by Britond highest for the continent this year. ish explorer Tullow Oil in the countrys The West Africa north, followed by region is expected Recent a second nd in the to post the fastest discoveies of same region. growth for 2013 mineals ae The discoveries at 6.6 per cent, buoyed by commodiof oil in Kenya trigexpected to tiesespecially futhe expand gered a rush which oil and minerals saw international scal space exploitation in oil and gas compacountries such as nies take up what UNECA REPORT remained of Kenyas Ghana, Niger and 46 exploration licenCes. Kenya Sierra Leone and peace and has since demarcated eight new stability in Cte dIvoire. blocks for onshore and oshore Increasing economic dioil and gas exploration to cater versity, rising agricultural output and exports, as well as new for the increased demand. natural-resource discoveries are The country has also struck expected to boost growth in East substantial reserves on valuable Africa, which has remained one minerals such as gold, niobium of the top performing sub reand rare earth which are expected to earn the country foreign gions, the agency said in its income. Improved output of report titled Africa Economic
BY ALLAN ODHIAMBO
The Ngamia 1 site in Turkana where British rm Tullow struck oil. Natural resource discoveries are among the factors expected to drive economic growth in East Africa. FILE
agricultural export commodities such horticulture, tea and coee also remains an option for Kenya to grow its earnings in 2013 going by the forecast is for good weather. Exports of the three commodities earned the country Sh218.71billion in 2012. The UN agency said earnings from minerals and mineral resources would help countries such as Kenya to improve spending on programmes such as infrastructure which are key to spurring economic growth. Recent discoveries of minerals in several African countries are expected to further expand scal space as well as public spending in countries such as Ghana, Kenya, Mauritania and Uganda, Uneca said. Additional returns from commodities could bring some relief to the new government which is expected to walk a tight rope as it juggles with options of sustaining economic growth through development spending
without hurting consumers through higher taxes. Although the country has taken bold steps towards scal consolidation in the recent years, the implementation of the devolved system of governance will exert additional pressure on public spending, leaving the government with a challenge of nancing its overall budget. Revenue collection gures in Kenya have not been impressive since the start of the current scal year, partly due to the eects of slowed economic performance. The gravity of the situation is captured by the fact that the Kenya Revenue Authority (KRA) has a dicult task to collect Sh365 billion within four months if the government is to meet the scal years revenue target. aodhiambo@ke.nationmed ia.com
Goveno odes agency to pay taxes

BY DANIEL NYASSY
Tana River County has ordered a regional development agency in the area to pay taxes or leave in a conict that could become common as devolution takes root. The governor, Hussein Dado, ordered the Tana and Athi River Development Authority (Tarda), a government agency carrying out irrigation farming, to pay taxes to the county government. He said several ranches in the area including Galana Ranch, another government body, had stopped paying their mandatory dues to the then Tana River
County Council from the beginning of the year. They capitalised on the transition and stopped paying taxes. Even after we intervened, they have remained deant. I am telling them that they must pay up or pack and go, he said.
Revenue collection
He said revenue collection had dropped by 60 per cent in the rst three months of the year. Mr Dado also warned foreign shermen who he claimed were earning millions from shing in River Tana without paying taxes.
Fishermen come here and take our sh away from River Tana including crocodiles. Some crocodile farms are thriving in Mombasa from the reptiles taken out of River Tana, he said. He said the county resources would be harnessed to revitalise the local economy and improve the lives of the people. Even in agriculture, we have the most potential in Coast if we use irrigation from River Tana. Our county can produce enough food not only for Coast but for the entire nation and FOR export, he said.
Website: www.madeingujarat.com
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ECONOMY & POLITICS
Businesses see gowth afte Supeme Cout judgment

BY LILIAN OCHIENG AND RAMENYA GIBENDI
Calm is back in Kisumu after sporadic riots at the weekend. JACOB OWITI
The business community in Kisumu expects a gradual improvement in trade from weeks of depressed activity caused by uncertainty over the outcome of the presidential election. The Supreme Court on Saturday conrmed Uhuru Kenyatta as the validly elected fourth President of Kenya with his closest challenger Raila Odinga accepting the judgment.
Kenya Chamber of Commerce and Industry Nyanza chapter executive secretary Odhiambo Kitoto said businesses are set to recover as the political environment becomes stable. The hotel industry is looking vibrant now and I already have a few bookings for next week unlike during the elections period when there were no tourists, Mr Kitoto said. Last week, the Kisumu Hotels Managers Association said that bed capacity was at between 30 and 40
per cent against 70 per cent during for Easter holiday last year. Some hotels were forced to reduce overhead costs by temporarily relieving some sta of their duties until normalcy resumes, said chairman Robinson Anyal. He said the hotels had largely missed out on conference tourists and leisure travellers. He puts the revenue loss suered by 10 of the leading hotels in Kisumu at Sh10 million. Guest houses, which rely on bed occupancy for threequarters of their earnings also bore the
brunt of the business dip. Tour operators and car hire services also incurred losses during the period. Mr Shalton Onyancha, a tours and travel operator, said that he leased out about seven vehicles a day instead of the average of 15 per day during Easter. Now that politics is over and there is peace, the future is bright Mr Onyancha said. Traders are also pegging their hopes on county governments to spur growth.
Coast hotels set to lay o wokes in low touist season

JOB CUTS Operators
Back to wok
say casual staff will go on leave as the facilities embark on renovation

BY MATHIAS RINGA
At least 6,000 workers in the hotel industry are set to be declared redundant this week following the onset of the low tourist season. Kenya Association of Hotelkeepers and Caterers Coast executive ocer Sam Ikwaye said that casual sta would be sent on unpaid leave as 33 hotels across the coastal region close down for renovations. Thousands of casual and contracted workers will be rendered jobless for three months as some hotels are shutting down owing to lack of guests, he said. Mr Ikwaye added that nine lodges and camps in Tsavo and Amboseli national parks would also close. The low tourist season kicks o shortly after the Easter holiday to mid-July when the high tourist season sets in. At least 2,000 casual workers in Malindi and Watamu towns are expected to be sent on unpaid leave as the investors, mostly of Italian origin, start repairs. The closure of hotels will reduce the market for farmers who supply fresh produce, milk and meat to the leisure sector. Thousands of shermen and curio dealers who provide support services to the industry would also be left without daily incomes. Associations Coast vice-chairman Vikram Korla said less than 10 hotels in the South Coast would shut down in the low season sending hundreds of workers home. Mr Korla said hotels in Diani had few guests since the beginning of the year
Alternative plan
The Mombasa and Coast Association plans to market their facilities in Ethiopia, Uganda, Tanzania and South Africa to attract new business.
because of the General Election with the exception of the Easter vacation. We hope for the best in the high tourist season because there is peace and international travel agencies have condence in our destination, he added. Mombasa and Coast Tourist Association chairman Mohamed Hersi said hotels in Mombasa would depend on conferences and domestic market during the low season. During low season, most hotels in Mombasa remain open as we serve local holidaymakers, participants in conferences and workshops, he said. Serena Beach Hotel general manager Tuva Mwahunga said the hotel had 90 per cent bed occupancy during Easter because of domestic tourism campaigns. Despite the low number of guests, the hotel has since January been having an occupancy of over 50 due to support from repeat tourists, Mr Mwahunga said. Ashnil Hotels marketing manager Paul Kurgat said its lodges and tented camps in Tsavo East national park, Masai Mara and Samburu would remain open during the low season to serve locals. We have bookings from locals interested in game drives, he said. mringa@ke.nationmedia.com
Trader Masaku Wambua prepares to sell French beans at Wakulima Market yesterday. Business was slowly picking up following weeks of uncertainty after the March 4 General Election. The Supreme Courts Saturday ruling that upheld the election of Uhuru Kenyatta as Kenyas fourth President has seen many traders in the city resume business. DIANA NGILA
Nairobi
NCPB stats sale of subsidised fetilise today

BY DENNIS ODUNGA
The National Cereals and Produce Board (NCPB) will from today distribute subsidised fertiliser for the long rains planting season which is already underway. Managing director Gedion Misoi said 200,000 bags of DAP would be available at depots in the North Rift and parts of western and Nyanza by the end of this week. Last week, 2, 200 bags had arrived at Kitale depot, 1,500 bags at Moi
Bridge depot and 1,600 bags at the Eldoret depot. Another 800,000 bags were distributed to farmers between November and December, last year. Farmers who have been cleared by the Ministry of Agriculture will be advised from the depots where to deposit the money, he said. We shall have brought in close to two million bags of fertilisers for this planting season in addition to the fertiliser that is available in the private sector, the managing director said yesterday at the Eldoret Depot.
DAP is being sold at Sh2,500 per 50-kg bag down from Sh4,600 whereas CAN while CAN will sell at Sh1,500 down from Sh2,500 in the private sector. Prof Misoi warned traders that they would be arrested if they were found selling subsidised fertilisers. Following reports that expired fertiliser worth more than 100 million had been impounded at the Mombasa port, he said farmers would only be assured of quality fertiliser at NCPB stores.
CORPORATE NEWS
NEWS I PROFILES I TRENDS
Helios makes U-tun on Equity exit

OWNERSHIP PE company to remain largest
James Finlay stopped fom closing hospital

BY GALGALLO FAYO
shareholder, says lender has room for growth

BY DAVID HERBLING
Private equity rm Helios EB Investors has made a U-turn over the pledge to reduce its stake in Equity Bank and committed to remain the largest shareholder in the lender on improved returns. The London-based PE said in 2007 that it would exit the bank in a period of between three and seven years through the Nairobi bourse after paying Sh11 billion to acquire a 24.9 per cent stake in Equity Bank. The stake is now worth Sh30 billion and Helios has earned Sh3.4 billion in dividends since 2008, meaning its investment has grown two-fold. Now, the private equity fund reckons that Equity Bank is yet to hit its peak on the banks regional agenda and that it is keen to enjoy dividends of the growth as the lenders top shareholder. We have no plan to exit. We still see a lot of potential in this bank, Helios co-founder Temitope Lawani told Business Daily on the sidelines of the lenders AGM last week. With the regional growth to east and central Africa, the bank is growing very well and we foresee higher returns, said Mr Lawani, who is also a director of Equity Bank. He added that the PE rm could have mulled selling its shares in the bank had Equity Bank restricted its
operations in Kenya. Regional expansion is becoming important as the East Africa Community (EAC) common market takes shape, opening way for free movement of factors of production in a market of 130 million people. Kenyan companies are opening subsidiaries in the region with banks following suit in an eort to oer seamless banking services in EAC which has caught the eye of Equity Bank, KCB and DTB. Equity Bank posted a 16.9 per cent rise in net prot to Sh12 billion in the year to December making the second most protable bank in Kenya behind KCB. Prots from its foreign subsidiaries including Tanzania, Uganda, Rwanda and South Sudan nearly doubled last year from Sh552 million to Sh1.08 billion compared to a loss of Sh330 million in 2009. The bank has been one of the most sought after counters at the Nairobi Securities Exchange (NSE) having gained 70.5 per cent to trade at Sh33.25 and foreigners now own 46.63 per cent of the lender compared to 40.82 per cent in October 2011. Since debut on the NSE on August 7, 2006, the share has appreciated by more than 900 per cent, taking into account splits and bonus stocks in what has made its owners, including employees, directors and founders, millionaires. Individual top sharehold-
Top shareholders
Name Helios EB Britam Equity ESOP James Mwangi Equity Nominees a/c 00104 Fortress Highland Stanchart Nominees a/c 9069 Andrew Kimani Solidus Holdings StanChart Nominees a/c 9054 % 24.45 7.66 3.86 3.45 2.97 2.73 2.53 2.44 2.43 2.38
Equity Bank shareholders at an AGM last week. Helios said during the meeting that the bank has a lot of potential. FILE
barring an executive director of a bank from holding more than ve per cent of the institutions capital. His direct stake has dropped to 3.45 per cent from 5.49 per cent, but he has indirect interests through British American Investments and the banks Employee Share Ownership Plan amounting to 1.43 per cent. Mr Mwangis stake is now worth Sh6 billion. The family of the late Nelson Muguku has cut its stake, which is currently worth Sh1.65 billion, by more than Sh2 billion since 2010. hdavid@ke.nationmedia.com
SOURCE: ANNUAL REPORTS
ers of the bank have since 2008 earned billions of shillings from the sale of their shares after the end of a twoyear-lock-in for anchor shareholders. The anchor shareholders were barred from selling their shares as a condition to listing at the NSE. James Mwangi, the CEO, has earned about Sh1.6 billion over the past four years from share sale that he said were dictated by regulations
The Industrial Court has stopped a multinational tea company in Kericho from closing a dispensary after it found that the company had failed to consult the employees union and notify the regulator. Justice Brian Ongaya stopped James Finlay Limited from sending 53 health workers who were aected by the intended closure, saying it would aect patients and sta. The company last month outsourced health services to Unilever Tea Health Centre in Kericho town and issued redundancy notice to the workers. The Kenya Plantation and Agricultural Workers Union (Kepawu) moved to court to protest the closure of the hospital. The respondent shall not close its James Finlay (K) Limited, Chomogonday Central Hospital unless the closure is in accordance with the provisions of the Medical Practitioners and Dentists Act and, the Medical Practitioners and Dentists (Private Medical Institutions) Rules, 2000, ruled Mr Justice Ongaya. The judge agreed with the unions argument that the closure of the hospital would aect HIV/Aids research project that the hospital has been running with Walter Reed Project-Kenya. The United States Military HIV Research Programme is run with the Kenya Medical Research Institute (Kemri). The hospital established in the colonial period also serves the residents. The union said the closure would mean transfer of information held in condence, jeopardising condentiality.
Honda unveils local patne in Sh450m motocycle plant

BY SIMON CIURI
Japans Honda Motor Co has partnered with a local investor to start an assembly of motorcycles in Kenya opening in September to capture growing demand for bikes in the East Africa region. The auto maker said it will own 90 per cent in the Sh450 million-venture while environmentalist Isaac Kalua will own 10 per cent of the subsidiary, Honda Motorcycle Kenya Ltd. Dr Kalua, who is a facilities management graduate from Yale University, is the founder of Green Africa Foundation which champions pursuit of economic development while reducing environmental risks commonly known as green economy. The new plant, with an initial production capacity of 25,000 units per
year, will boost the prole of Kenyas auto business at a time car dealers, including Toyota, Indias Tata Motors, Hyundai Motor Company and Chinas Foton, are showing a bias for local assembly. It will be the companys third local subsidiary in Africa, after South Africa and Nigeria and one of the few joint ventures between a Japanese conglomerate and a local investor. The company will establish a system and capability for global parts sourcing as well as ecient production to deliver high quality products at aordable prices, said Honda Motor Co in a statement. The subsidiary has appointed Yasuhiro Imazato as CEO, previously a director of Honda Vietnams oce. Hondas Japanese rival Toyota un-
partnership. It went into partnership with Lonrho Motors which was owned 20.5 per cent by local investors associated with former President Moi, in 1999 before buying it out.
Sixty workers
Lonrho Motors was suspended from trading at the Nairobi Stock Exchange (now Nairobi Securities Exchange) after it was placed under receivership. The move came after the parent company, Liverpool-based Lonrho Plc, which owned a 79.5 per cent stake, withdrew its nancial support. Honda said the Kenyan subsidiary will initially employ 60 workers and will produce several entry-level models to be marketed in Kenya. The annual demand for motorcy-
Dr Isaac Kalua: He will own 10 per cent of Honda Motorcycle Kenya Ltd. FILE successfully formed a joint venture with local investors before ending the
cles in the country has increased from 16,293 in 2007 to 140,215 in 2011 on the increased use of the bikes, commonly referred to as bodaboda, for public transport. Honda is seeking larger share of the motorcycle market that is dominated by brands from China and India. Other players in the market include Yamaha Kenya, which is a unit of Toyota Kenya, and Car &General that deals in TVS and Suzuki brands. Besides the regional market, Honda will benet from a lower tax bill through local assembly and oer competitive pricing. Imports of parts used in local assembly are exempted from the 25 per cent import duty levied on fully built units, giving room to the assemblers to produce cheaper vehicles.
CORPORATE NEWS
GROWTH
Cash call could cut government stake from 22 per cent if Treasury doesnt participate inthe offer
Trust Bank and Standard Chartered that have recently turned to right issues for expansion cash. Treasury says it will weigh the strategic importance of participating in the rights before injecting additional capital in NBK. We will see whether its strategically important to maintain our shareholding but historically, Treasury has not been participating in rights done by banks where we have stakes, nance minister Njeru Githae told the Business Daily last week. Treasury did not participate in KCBs and Housing Finance rights issue that cut its stake in the two banks. The governments shareholding in KCB dropped from 70 per cent in 1990 to 35 per cent in 1998 and 26.2 per cent in 2007 and 17.63 per cent in December. The National Social Security Fund owns a 48.06 per cent stake in NBK and also holds 21 per cent of the banks 1.13 billion preference shares worth Sh5.6 billion. The government has 79 per cent of the preference shares which are stocks that pay a xed dividend and do not have voting rights. The shares have their roots in 2000 when the bank was facing a crunch due to bad loans, which saw the government and the NSSF inject Sh4.5 billion and Sh1.1 billion respectively as a bailout package. hdavid@ke.nationmedia.com
National Bank mulls st ights issue since listing

BY DAVID HERBLING
National Bank of Kenya (NBK) is planning its rst rights issue to nance expansion in a transaction that could further cut the stake of the government in the mid-tier lender. The bank is eyeing to raise the cash from shareholders next year to widen its reach and deepen its corporate banking business that has generated about 13 per cent of its loan book. The bank plans to open between 10 and 15 branches this year and 10 branches next year which will benet from the cash call that will also raise the banks capital levels to allow NBK close big-ticket corporate deals. NBK has never raised cash through a rights issue since listing at the Nairobi bourse in 1994. The Treasury (which has a 22 per cent stake in the bank) is saying it might decide to sit out the
rights issue, a move that will dilute governments ownership. We need more capital to take us to top tier band by 2017 and be among the top ve banks in Kenya, said Munir Ahmed, the managing director who took the helm in August following the retirement of Reuben Marambii. Well do an analysis to see how much we need. The additional capital is aimed at funding the banks plans to explore opportunities to further strengthen its business, Mr Ahmed said. NBK says the additional capital will boost its capacity to lend to larger borrowers, whom its targeting to reverse the 52.8 per cent drop in prots to Sh729 million in the year to December. The drop was linked to costly deposits and the lenders heavy reliance on consumer banking that accounts for about 85 per cent of its total
NBK Top Shareholders %

NSSF Treasury NIC Custodial a/c 077 Equity Nominee a/c 00084 Paul Wanderi Ndungu Stanchart Nominees a/c 9098J Ephraim maina Jubilee Insurance Craysell Investments APA Insurance 48.05 22.50 0.41 0.37 0.34 0.33 0.32 0.29 0.23 0.18
National Bank of Kenya managing director Munir Ahmed during an investors brieng in Nairobi last week.
SALATON NJAU
SOURCE: ANNUAL REPORT

loans advanced. Lending to a single borrower is capped at 25 per cent of a nanciers core capital which means NBK can lend Sh2.4 billion to a single borrower while Kenyas fth largest
bank, Cooperative Bank, can handle Sh7.35 billion. NBK is also seeking a wider retail network to boost its power to gather deposits and maintain its market share. Our aim is to cover all counties in Kenya, said Mr Ahmed. It will join a number of banks including KCB, Family Bank, Diamond
CMC in fesh cout bid to stop Jagua Land Rove

BY GALGALLO FAYO
The matter
CMC wants to stop JLR from dealing with RMA group pending conclusion of its appeal It maintains its business will suffer should the multinational auto rm be allowed to deal with RMA pending the appeal.
CMC Holdings has moved back to court seeking to stop Jaguar Land Rover from dealing with a rival rm pending the conclusion of an appeal by the auto dealer. JLR said last week that RMA Group will start distributing its brands Land Rover, Range Rover and Jaguar after the High Court on March 19 dismissed a suit seeking to block the multinational from ending its pact with CMC. But CMC maintains its business will suer should the multinational auto rm be allowed to deal with RMA pending the appeal. Applicants will suer irreparably if the respondent (JLR) is not restrained by an order of injection pending the appeal, said CMC in its latest application. On the other hand, the respondent does not stand to suer any prejudice by the issuance of the orders sought. If successful, the injunction will delay and further compli-
CMC ofces. FILE
cate JLR plans to use RMA to gain market share in the regions luxury market through new brands like Range Rover 2013 and Jaguar F-Type in Kenya this year. The South-Africa based rm said RMA will invest in showrooms, service centres, and hire sta to enable it operate the franchise in the local market. RMA will be making the signicant investments in terms of people, premises, and parts inventory to ensure the best possible service levels are maintained, JLR said in a letter published in a local newspaper. RMA Kenya and Jaguar Land Rover will be sharing
their plans for the launch of the new operation over the coming days and weeks. Sources familiar with the plans say RMA will lease facilities owned by auto dealer Marshalls East Africa in smaller towns and establish its own branch in Nairobi. JLR threw CMC into a crisis last year with the announcement that it would transfer the rights to exclusively trade in Land Rover Defender, Jaguar and Range Rover brands to RMA from February 3. The JLR brands account for 30 per cent of CMCs annual unit sales and their loss would hurt the auto rm whose operating prots have been falling since 2008.
IDEAS & DEBATE

OPINIONS I REVIEWS I ANALYSIS
GEOPOLITICS A recent study found Chinese loans carry tougher conditions than World Banks
Other Voices
Kim Jong-un North Korea Leader
Chinas unconditional foeign aid fo Afican counties is a big myth

tention is dierent from that of Europe, which to date continues to attempt to inuence African countries for their sole benet. Well, Africans are rightfully known for their kindness and politeness to their guests, especially if those guests bring or promise to bring gifts. Its not that Mr Zuma was hypnotised by President Xis promise of loans to Africa. President Zuma was just stretching the truth with very common diplomatic rhetoric, as any good host would do. African countries, not the least of which is South Africa, have many economic and trade agreements with the West. If those agreements produced gains only for the West, why have African countries continued to nurture them? Now, of course, from a practical point of view, countries are not equal to each other. From a political point of view (democracy, freedom of speech, freedom of religion), South Africa and a number of other African countries are more akin to the West than to China. South Africa could teach China a thing or two about democracy if China was willing to listen. From an economic point of view, China is a power house compared to any African country. As long as China is the donor (lender) and the African country is the aid-recipient (borrower), China will have leverage and will use it. In fact, China would be foolish not to use its leverage. President Xis charm should not hypnotise Africans to think that China is so altruistic as to not have any conditions on its low-interest loans. Now, of course, if all African countries had the good governance Botswana has demonstrated over the years, conditionality would be inconsequential because Africa wouldnt still be begging for aid. According to a study by Carol Lancaster and Samuel Wangwe in 2000, Managing a Smooth Transition from Aid Dependence in Africa, Botswana has gone from being one of the poorest, most aid-dependent countries to a middle-income country no longer in need of signicant amounts of external assistance and where donors have begun to phase out aid. As long as Africa continues to be dependent on aid, whether from the West or China, it cannot escape conditions, no matter what the President of China may want us to believe. The author is professor of Economics, La Salle University in the US. mshomba@lasalle.edu
Elizabeth Hoffman (Reuters) Nuclear escalation on the Korean Peninsula demands creative solutions. With a 2,200year history of non-aggression, China is in the best position to take the lead and relieve the United States of a burden it has shouldered for too long. In fact, no other nation has had as stable a pattern of world citizenship. Over two millennia, China has not attempted to conquer its neighbours or spread its system of government on any scale remotely comparable to the Romans, Mongols, British, Germans, French, Spanish, Russians, Japanese or even Americans.
Angela Merkel German Chancellor
From left: Chinas rst lady Peng Liyuan, Tanzanias rst lady Salma Kikwete, Chinese president Xi Jinping, and Tanzanian president Jakaya Kikwete being entertained at Julius Nyerere International airport in Dar es Salaam on March 24, 2013. AFP
BY RICHARD MSHOMBA
The President of China, Xi Jinping, has promised Africa $20 billion in nancial assistance with no strings attached. If you can believe that, you might as well believe that there are no labour violations in China and that China does not manipulate its currency. There is no unconditional foreign aid. (By the way, what is often called aid is actually a lowinterest loan.) When President says that China will not interfere with the internal aairs of African countries, he is implicitly placing a condition that African leaders must not interfere with Chinas internal aairs. And internal aairs has broad interpretation. If you complain that China has an unfair advantage in exports due to child labour or other labour rights violations, you are interfering with internal aairs. In other words, if African leaders accept Chinas aid, they better be prepared not to criticise the Chinese government or its policies. Of course, Mr Xi was not only addressing African leaders. He was criticising the West and the World Bank and the International Monetary Fund (IMF) for tying economic aid to conditions. Some of the conditions set by the World Bank and the IMF are indeed quite intrusive, but it would be nave to think that China is above it all. China will expect its contractors to be given priority for, if not the exclusive right to, projects nanced by Chinas loans, even if there are other contractors who can do a better job at a lower
cost. China will also try to bring a lot of that] China Development Bank (CDB) its own people to do the work, including loans carry more stringent conditions non-technical work. This is not to sugthan World Bank loans. gest that China will be doing anything While one can expect a certain bias, dierent from other donors. the studys point still carries merit. The point is that Chinas aid is not as Another point to be made is that unconditional as President Xi is trying while policy conditionality can limit to make Africans believe. In 1994, China exibility and policy space of the aidestablished an Export-Import Bank that receiving countries, some conditions by functions more or less like the one in the the donor countries and organisation United States. It is a government bank are important. with the primary purpose of subsidising This is not necessarily to say that and promoting Chinese exports. those donors know better than Africans themselves. However, there is no A common scenario is that a Chinese company would propose a project to a denying that not all African countries given country and then help that country have good governance and not all Afsecure a loan. Just as an example, China rican leaders have the best interests of Harbour Engineering Company (CHEC) their own people at heart. Therefore, may propose expansion of an existing notwithstanding the self-interest of the harbour or construction aid-giving countries, it of a new one. is not necessarily wise to give aid with no condiWhen that proposal As long as China tions attached. is accepted, the host Who, for example, in country applies to the is the dono their right mind would Export-Import Bank and the Afican have been willing to asfor a low-interest loan county is the aidsist Zimbabwe in 2008 with the understanding that the project, or to restore macroecoecipient, China at least a major part of it, nomic stability without will have leveage would be implemented conditions on its monand will use it by CHEC. etary and exchange rate policies? A recent study, The The President of New Banks in Town: South Africa, Mr Jacob Chinese Finance in Zuma, is quoted saying we are parLatin America, by a think tank (Interticularly pleased that in our relationAmerican Dialogue) based in Washington, D.C., concludes that although ship with China we are equals and that Chinese banks impose no policy condiagreements entered into are for mutual tions on borrower governments, [they] gain. This gathering indicates commitdo require equipment purchases and ment to mutual respect and benet. We certainly are convinced that Chinas insometimes oil sale agreements [and
Stefan Meister (Guardian) Germany is Russias key political and economic partner in the EU, but over the last two years and especially since the return of Vladimir Putin as Russian president there has been an increasing alienation between Berlin and Moscow. In terms of political belief, there is little common ground between Angela Merkel and Putin the good old times of male bonding between Schrder-Putin and Kohl-Yeltsin are long over. Merkel has been a much more critical partner to Moscow than her predecessors and Russias poor human rights record is a common theme in German discourse on the country.
Barack Obama US President
Dana Milbank (Washington Post) Obama made an impassioned bid this week to revive prospects for gun-control legislation, but its difcult to escape the conclusion that his efforts come too late. A fellow Democrat, Senate Majority Leader Harry Reid, has killed plans for bans on assault weapons and large ammunition clips. Republicans appear to have enough votes to block any meaningful expansion of background checks.
10
EDITORIAL & OPINION
Published by the Nation Media Group, Kimathi Street, Nairobi
Linus Gitahi: Chief Executive Ofcer | Joseph Odindo: Editorial Director Ochieng Rapuro: Managing Editor P.O.Box 49010 GPO Nairobi Telephone: 254 20 328 8104 Fax: 254 20 214849 Email : bdfeedback@nation.co.ke www.bdafrica.com
Uhuu should pioitise ou economic gowth
he next Uhuru Kenyatta government will inherit an economy saddled by a huge public debt amounting to Sh1.8 trillion. Although that is one of the main problems that he has to deal with, Mr Uhuru must walk the full length of this country assuring all Kenyans that they will not be discriminated against. Judging by the suppressed anger that followed the Supreme Courts decision to uphold Mr Kenyattas victory, it is not right, however politically correct, to adopt a winnertakes-it-all attitude. Mr Kenyatta should reach out to all people and be the symbol of national unity as dictated by the Constitution. There will be rough and tough times ahead. Political temperature will occasionally rise and this country will look upon the Presidency to hold the nation together. In a weeks time the Coalition government that brought together Party of National Unity (PNU), Orange Democratic Party (ODM), and Wiper Democratic Party together to implement the National Accord and Reconciliation Act will nally be dissolved. While the Accord, despite its shortcomings, gave this nation a proper power balance and allowed us to enact a new Constitution, it also allowed us to reect hard on
the inner tenets of this nation. We should not throw away those gains. Of importance will be need to increase support to small and medium sized enterprises and bring into the tax bracket many more people. Unless he improves on our revenue collection, Mr Kenyattas government will nd it hard to balance its budget and meet the promises he made during his campaigns. By last December, the total revenue collection stood at Sh360.3bn against a target of Sh404.3bn. That means that there was a Sh44bn shortfall. To spur economic growth, Mr Kenyatta must put in place schemes to attract investors and oer them incentives to get into business. The agriculture sector must be helped to support satelite industries at the county level. While Western nations have hailed Mr Kenyattas win, there is still some unresolved issues on how they will deal with his government given the cases at the International Criminal Court. It will be important for Mr Kenyatta to reach out to all nations and perhaps maintain Kenyas foreign policy of non-aligment. Mr Kenyatta will nally be judged on how he builds a solid economy. It is on this that Kenyans will be watching him.
I was born a pessimist... My blood type is B negative...
Kenyas past and pesent govenos

pointed Commissioners, starting with Arthur Henry Hardinge, to wield local power. There were four commissioners, the last being James Hayes Sadler whose title changed to governor in 1905. Sadler helped to organise the rst Legislative Council (LegCo) for appointed settlers with himself as the presiding ocer. The territorys name changed again in 1920 to Crown Colony and Protectorate of Kenya with Edward Northey as the transitional governor. From 1920 to 1963, at independence, Kenya had 11 governors whose impact varied with prevailing challenges. The last four had to deal with a rising anti-colonial tide. Malcolm MacDonald endeared himself by being nice to the incoming African government. As the last governor, MacDonald probably sanitised the title governor. The title governor also connotes an ocer who is subordinate to another such as emperor, king, or president. Governors in colonial Kenya remained subordinate to ocials in London while in the US governors of states are subordinate to federal authorities on matters national. The inuence of the US in drafting of Kenyas new Constitution is apparent in the creation of two levels of government, national and county. The Constitution called for election of senators to represent county interests but not necessarily the people in the county. There are, however, mesmerised governors who dream of rendering the national government irrelevant and of exercising political absolutism in the counties. While grand-standing, they ignore the fact that the national government organised swearing in ceremonies, provides their security and limousines ying the national ag, and has critical national functions at the county level. To get national funding for their programmes, governors must account to Nairobi. And in case of serious conict, the national position will prevail. The national government, besides, has power to dissolve unstable county governments. The governor gets glamour and manoeuvres local politics to deliver on promises, the County Commissioner ensures protection of national interests. No conict at all. Elected county bosses enjoy political romanticism as thrilled governors. Those who understand the relationship between national and county governments will develop their counties; confused governors will grandstand, complain, and op. Macharia is a Professor of History and International Relations, USIU
MACHARIA MUNENE LEADERSHIP
Resolve stando at KTDC

Reports that a lender is unable to disburse Sh180 million to the tourism sector because it lacks a board of directors to sanction allocations are regrettable. The sector plays a crucial role in boosting the countrys foreign exchange earnings and must be accorded all the support to thrive. Unfortunately, a simple stando over the procedure of hiring ocials to serve on the board of Kenya Tourist Development Corporation (KTDC) threatens the wellbeing of this key sector. This situation should be addressed immediately and a board appointed to run this crucial agency which is charged with funding investors who put up tourism facilities. Competition in the tourism sector is huge both regionally and globally and we cannot aord to compromise on opportunities that would hand the country an edge. Demand for funds to develop or upgrade tourist facilities is huge and KTDC must not continue sitting on money because of bad decisions made by a few individuals in government. We believe in the rule of law, but bureaucracy must not be allowed to creep into day-to-day functions of government and frustrate noble intentions such as boosting tourism. This country has enough qualied people who can manage the aairs of KTDC.
rom its ocial creation as British territory and then Crown Colony in Eastern Africa, Kenya had rulers with assorted titles. Among the most common title was governor, implying administrative and political power. Governor overshadows titles of temporary value such as administrator, commissioner and prime minister. Mostly identied with colonial Kenya, governor arouses governance romanticism that is associated with glamour, prestige, and trappings of power. The title has been resurrected with much fun-fare. There were other colonial era titles. Under the umbrella of the Imperial British East Africa Company led by William Mackinnon, ve men called administrator looked after company interests. Since the company failed, Britain renamed the territory as British East Africa Protectorate in 1895 and ap-
VIEWS FROM ABROAD

Wrong message at Obama meet
Symbolism matters, and President Obama knows it. When the president spoke at Georgetown University in 2009, his advance team asked THE WASHINGTON TIMES that the Roman CathoWASHINGTON DC lic university cover an image derived from the first three Greek letters of the name of Jesus Christ. The gold IHS monogram inscribed in the hall where Mr Obama spoke was duly covered. No such scruples and sensitivity were prescribed when Mr Obama recently joined Palestinian President Mahmoud Abbas in the West Bank for a news conference under the banner of a larger-than-life image of Yasser Arafat, widely regarded as the father of modern terrorism.
Opinions fom aound the wold

Lay emphasis on good English
The Liberal Democratic Partys panel on education has announced it will propose that all students in Japan take the Test of English as a Foreign Language to JAPAN TIMES enter and exit university. TOKYO The new proposal also includes a requirement for all aspirants to central government positions to take the exam from fiscal 2015. As part of efforts to improve the low level of English in Japan, the proposal, with a proposed 1 trillion budget, is directed toward a crucial issue for Japans future. However, the proposal offers no genuinely effective measures for improving the teaching and learning of English in Japan.
Africas democracy is growing

Kenyas Supreme Court upheld Uhuru Kenyattas presidential election victory on Saturday and his main rival accepted the ruling. And shortly after the ruling, Raila Odinga THE NEW TIMES delivered a televised KIGALI statement accepting the courts unanimous decision and congratulated Uhuru. Like a mature statesman, Odinga also wished Team Uhuru the best in their new job. There had been several insinuations that the court ruling was likely to spark off violence, but at the end of the day democracy and respect of the decision of the Supreme Court prevailed. The developments in Kenya are yet another silver lining on Africas growing democracy.
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11
EDITORIAL & OPINION
MPs unwittingly couting steet potests

BY KARIUKI MUIRI POLITICS
he new MPs are dead serious in their threat to suspend the Constitution and disband the Salaries and Remuneration Commission (SRC) reason? The body that is constitutionally mandated to align our public wage bill with the economy reduced their salaries. If you thought that the new Constitution that we gave ourselves is enough to set us on the path of reforms and shield us from such tyrants, you are mistaken. It appears that those we elected have turned against us too soon. Days when
Kenyans protested on streets to get constitutional guarantees are back. The people must now get organised against the legislators, picket Parliament, and stop the self-serving, unpatriotic MPs from carrying out the robbery. My generation wasted the 90s ghting former President Mois dictatorship. The country is now called again to ght the over 400 elected tyrants. Unless we safeguard our economy by keeping the wage bill at seven per cent and below, tough times beckon with deadly ramications; not least an increase in poverty levels. Currently the public wage bill is over 12 per cent of GDP. This can easily bankrupt Kenya. With
over Sh80 billion unsettled development invoices currently, we are well on our way to bankruptcy. With over 800,000 young people ooding the weak job market every year, the Kenya version of the Arab Spring is nigh. It will spare nobody including our new President-elect, if he sides with the tyrants out to destroy our economy for selsh gain. Unless we grow the economy at 10 per cent for at least the next 15 years, the politicians can forget huge salaries. Why do people run for political oce if their intention is to grow rich on the back of taxpayers? Why abandon a higher paying profession like law to join politics
yet you are not ready to do public duty at a lower pay? Let us make this clear. Days when people used all their money to run for political oce then loot the Treasury are gone. Reforms cut both ways, that is what many will realise, to their utter horror. Mind you, we need to pay deserving civil servants more. But not people who rob us by twisting the law. Additionally, the ridiculous pay for constitutional oce holders and other parastatal bosses must be aligned to the economy accordingly. Muiri is a regular commentator on political issues
The Cypus takeaway: Moe phony cises to come

BY IAN BREMMER ECONOMY
Letters
The editor welcomes brief letters on topical issues. Opinions expressed here are not necessarily those of the editor or publisher. They may be edited for clarity, space or legal considerations.
Constitution empowers us to tame new legislators greed
t is evident that most of the new MPs who are waging a war against the Salaries and Remuneration Commission over reducing their pay did not read the Constitution before embarking on their campaigns. The Constitution states that SRC can only be disbanded through the approval of Kenyans via a referendum. SRC is on the right track and should be congratulated for work well done. The MPs should understand that only those who are truly committed to serving the people should seek elective posts. For far too long, greedy people have run for political oce with the sole aim of enriching themselves. The new legislators complain as if they are being forced to take mortgages and car loans or live in Runda and Muthaiga. Were they living on Mars before being elected? No, they were humble Kenyans living average lives. Now that they are public servants, not lords; let them serve us. They should be paid and taxed like any other working Kenyans on a take it or leave it basis. We also have funerals to attend, families
A section of the National Assembly as members waited to be sworn into ofce on March 28,2013. FILE to support, and friends to socialise with just like the MPs. That is why we need younger leaders who will take interests of the people seriously instead of advocating for higher paychecks even before being sworn into oce. My prediction is that 2017 will see more younger people take up seats in the August house.
**
Dalton Nyabundi, VIA EMAIL.
he new MPs plot to disband SRC on grounds that is slashed their salaries from Sh851,000 per month to Sh532,000 shows how greedy the current crop of MPs are. It is sad to learn that the plot has come at a time when the MPs are yet to do anything tangible for Kenyans. To voters, this is a demonstration that most of them are not in
Parliament to represent them but to enrich themselves. That said, we cannot stand-by and watch as the new MPs plot to loot the Treasury. We will use the constitutional provision which allows voters to collect enough signatures and cast a vote of no condence in them because this is the only way of getting rid of selsh MPs While some of their arguments can be justied, for instance that they left high paying jobs to go in politics, such are the sacrices we expect from true patriots and nationalists. If Kenyas history is anything to go by, the late Jomo Kenyatta, Bildad Kaggia, and Ochieng Oneko sacriced their lives for Kenyas independence. There is no record showing that they were paid for their eorts. Our political history notwithstanding, Prof Ngugi wa Thiongo deed odds to write against female genital mutilation in his early writings. His arguments were as relevant then as they are today yet nobody paid him for the eort.
ow that the crisis in Cyprus has passed, we can nally admit the obvious: The crisis it provoked did not deserve the attention it received. Cyprus makes up a fraction of one per cent of the European Unions GDP and its a backwater for sketchy Russian dealings. If Cyprus had drowned in a sea of Mediterranean debt, the Eurozone would not have gone under with it. Cyprus was not Greece (or Italy, or Spain). Nor have the bailout terms set a precedent for future crises in the Eurozones periphery. It was a sideshow. But that sideshow is still telling. It spoke to the new reality in the Eurozone: For anything to get done, it has to rst generate an unnecessary crisis. The Cyprus aair proves that the European Union has parallel crisis narratives, one thats playing out in the open, and another underlying one that gets less attention but is far more concerning. But crisis, manufactured or otherwise, is still the only thing that will bring some change to the continent, and so crisis is what it will get likely, for the next few years.
Intervening in Mali
Europe, meanwhile, is suering. Not only is every faux-crisis a distraction that derails policy leaders, its preventing Europe from asserting itself as a collective whole. What, for example, is the EUs foreign policy at the moment? The French are intervening in Mali, but more or less unilaterally. The Germans are friendly to the Chinese, but other key EU players are wary of that budding relationship. Of the 27 EU states, 25 stand in opposition to a French-British push to provide arms to the Syrian rebels. When it comes to foreign policy, aws inherent in the EUs design and distracting debt crises often leave it unable to operate as a cohesive diplomatic body. So what does all this mean going forward? What hope can we have for a continent and an economic zone that needs to cry wolf any time it wants to herd the ock? If I were a European nance minister, Id tell you that the Eurozone is in existential peril, even if that wasnt the case. That approach allows a debt crisis in the EUs smallest member to are into the global spotlight. Cyprus may not have been another Greece, or set any precedents for dealing with debt crises going forward. But it did reveal the phenomenon of the manufactured crisis of market forces and media frenzy that we are sure to see again. Bremmer is the president of Eurasia Group, the leading global political risk research and consulting rm.
Cosmas Mogere
Voters expect a lot from county governors, dont let them down
ounty Governors ought to remember the heavy burden placed on their shoulders by Kenyans in terms of steering development. It is the duty of each governor to protect interests of his county and ensure that its development is at per with others. With the
new system of governance, we look forward to forgetting issues like unemployment, poor infrastructure, and lack of industries in rural towns. Governors need to remember that Kenyans voted for the devolved system of government hoping that it would serve them
well. The system will only be perceived as successful if substantial benets are achieved. Establishing healthcare programmes, outstanding education facilities and infrastructure, and enhanced agriculture are what Kenyans expect from county governments in the next ve years.
Despite the dierent levels of development in counties, governors are expected to work out a winning formula through hiring the right people and employing unique management skills.
Wafula Peter, MASENO.
12
NEWS INDEPTH
Rae sh species dwindle as human activities take toll on the Nile basin
ENDANGERED
BY CAM MCGRATH
Almost half of valuable sh depicted in ancient records are extinct in Egyptian waters and dozen more threatened
A 4,200-year-old relief in the Tomb of Mereruka in Sakkara depicts the staggering array of sh that once inhabited the Nile River and its wetlands. Ancient Egyptian shermen with linen nets haul in their bounty, including the sacred Oxyrhynchus, a snub-nosed sh that was captured and nurtured but never eaten. Anecdotes from the shermen who inhabit the banks of the Nile today paint a dierent picture. Ibrahim Abdallah, a Nubian village elder, says many of the sh he remembers from his childhood have disappeared entirely from the river. Many varieties of sh are gone and the few that remain have been overshed, he says. Abdallah recalls a pan-sized sh he calls kawara that once gathered every summer in the Niles back eddies and deep pools on their way to spawn. We havent seen them for many years, he says. One summer we found they had all disappeared. Almost half of the Nile sh depicted in ancient reliefs are now extinct from Egyptian waters. Researchers comparing historic sh collection records estimate that as many as 35 of these sh species, including the elephant sh, Nile jewel cichlid, and African bony tongue, disappeared from the lower reaches of the Nile in the last 40 years. Dozens more are listed as threatened or endangered. Justin Grubich, assistant professor of biology at the American University in Cairo, says Nile river sheries suered a catastrophic decline following the construction of the Aswan High Dam in the 1960s. The dam acts as a barrier, impeding the reproductive cycle and migratory routes of many sh species, and preventing millions of tonnes of silt and organic matter from reaching the lower Nile. The High Dam was built to control the ood season so as to have more consistent agriculture, Grubich explains. The
dam helps regulate water better, but downstream there is no replenishment of soil and nutrients (to support aquatic life). The impact is felt over 1,200 kilometres downstream. Without sedimentation, the Nile delta is receding, in some areas by several metres a year. The coastal erosion has allowed the sea to advance into a series of shallow lakes at the mouth of the Nile, killing freshwater species unable to tolerate the higher salinity. It has also allowed predatory marine sh to invade spawning and nursery areas, devastating sh stocks. Research conducted in the 1970s found that aquatic biodiversity in the four Nile-fed Delta lakes in Egypt had decreased signicantly. Surveys by the National Institute of Oceanography and Fisheries (NIOF) identied 34 species of sh in Lake Manzala, compared to more than 50 recorded half a century earlier. Similar patterns were found in nearby Lake Burullus, which had become exceedingly brackish. And polluted. Over 4.5 million tonnes of industrial euent, including 50,000 tonnes of hazardous contaminants, is poured into the lower Nile each year, according to the environment ministry. The pollution, which also includes agricultural runo and untreated sewage, poisons aquatic life in the river and concentrates in the lakes at its mouth. Juvenile sh are extremely susceptible to pollution, which can kill them directly, or create a large volume of decaying organic matter that uses up all the dissolved oxygen that sh need to survive, says Osman El-Rayis, professor of chemistry at Alexandria University. Lethal levels of water toxins may have already extirpated the jewelsh, which once ourished in the Nile delta and northern lakes. Fishermen say the plump, bottom-scouring moon sh is now rarely seen in the river. And the once ubiquitous Nile minnow, which moved in large schools in the shallows, is now restricted to a few locations near Aswan.
In Lake Nasser, the 5,200 square kilometre reservoir behind the High Dam, populations of many sh species have declined to critical levels, warns Olfat Anwar, sheries director at the Lake Nasser Development Authority. The main reason is the change in environment, because there is almost no nutrient ow within Lake Nasser, she says. The current ranges from zero to 0.3 metres per second from Sudan until Abu Simbel, then is almost stagnant (further north). So there is no ow
Fishing on River Nile in Luxor, Egypt. Researchers say most of the sh resources in the river have disappeared in the past 40 years due to overshing. AFP
13
NEWS INDEPTH
GROWTH
from the south to the north, and this aected All these boats are concentrated in a very the species composition of the lake. limited area, and operate not more than ve The lake has also suered from decades of kilometres from shore, Madani told IPS. Some neglect and mismanagement that resulted in have the ability to travel further out to sea, but unsustainable shing practices, cruise boat they insist to work near shore, travelling parpollution, and an underfunded hatchery allel to the coast until they reach Libya. And programme. thats where the trouble begins. Sami Ibrahim, one of 16 shermen arrested Yet a few species of sh have not only survived, they have thrived. Four species of tilapia in 2010 when their boat crossed into Libyan inhabit the lake and support a healthy com- waters told local newspapers he was beaten mercial shery. Catsh, Nile perch and tiger and humiliated during the nine months the sh grow to monstrous size, attracting anglers Egyptian crew spent in Libyan custody. He said from around the world. the shermen had to buy food at their own exThe apparent success of a handful of spe- pense and were only released after Egyptian cies has distracted people from the plight of authorities paid the hefty ne. others, such as fahaka (Nile puersh) and Egypts Foreign ministry has intervened binny (barbel), which are suering, Anwar in cases where boat owners are unwilling, or tells IPS. Because they are not commercial sh, unable, to secure the release of their crews. saving them is deemed a low priority. Hundreds of Egyptian shermen have been But conservation action is desperately need- detained and their boats impounded, accorded, says AUCs Grubich. Freshwater bodies are ing to ministry records. particularly sensitive to ecological changes, Madani claims not more than 10 Egyptian and the loss of a seemingly insignicant spe- boats are responsible for 90 per cent of the sovereignty violations. cies can collapse complex food chains. All of these species together have been They are repeat oenders, he says. We evolving for millions of years and have de- found that they work on behalf of private Libveloped a food web, Grubich explains. Its a yan companies but dont operate under the delicate balance, and when you take out one umbrella of government regulations in order of the players it tends to have a cascading to avoid paying taxes on their catch. Fisheries consultant Alaa El-Haweet coneect. Meanwhile, for Egypts commercial marine cedes that some Egyptian crews sh illegally, shermen, making a living has never been more but points out that many of the seized boats dangerous. Egyptian crews driven are captured without any nets further aeld in search of sh have in the water. faced pirate attacks, spent months We can catch moe For years, the western in dingy foreign prisons, and come coast of Egypt was kept closed sh in Libya, but under re from coast guard vessels. by the military, he says. Since it the jouney thee opened about 10 years ago EgypDozens of shermen have been held for ransom, abused by authorities, is isky. We know tian boats, especially trawlers, or shot and killed. thei coast guad have travelled beyond to Malta, Its become a high stakes game, where they are allowed to sh. says Ayman the Anchovy, a crew can sink ou boat, But to get there they must cross member on an Egyptian trawler. impison us, o Libyan territorial waters. Decades of overshing have left wose. But we must Egyptian shermen say the Egypts shallow coastal waters alwestward journey along the most barren, he says. Many com- nd sh to suppot North African coast has become ou families mercial shing vessels now journey an increasingly dangerous game as far as Malta, Turkey and Djibouti AYMAN THE ANCHOVY, CREW of cat-and-mouse. in search of richer waters. In September 2012, the TuniMEMBER OF EGYPTIAN TRAWLER Fishing is very dicult in Egypt sian coast guard shot dead two and often doesnt cover the cost of fuel and sup- Egyptian shermen and wounded two others plies, Ayman says. We can catch more sh in when their boat entered Tunisian waters. Libya (and other countries), but the journey In May, a Libyan patrol boat opened re on there is risky. We know their coast guard can the Eagle of the East after it allegedly drifted sink our boat, imprison us, or worse. But we into Libyan territory. Four of the boats 12 crew members were seriously injured. must nd sh to support our families. The Red Sea is equally perilous, say boat Annual production from Egypts marine capture sheries has remained around 125,000 captains. metric tonnes for nearly a decade. But the gEarlier this month, a sherman was shot in ures conceal the impact of pollution and over- the leg when Yemeni gunmen stormed aboard shing on sh stocks. A signicant portion of an Egyptian shing boat, looted its equipment production now comes from remote sheries and cargo, and took its crew hostage. and extra-territorial waters. The sea rage incident was sparked after Competition has increased as Egypts eet local shermen claimed the Egyptian vessel, has grown. More than 4,000 commercial sh- which was licensed to operate in Yemeni waing boats are licensed to operate in Egypts ters, had attempted to ram their shrimp trawler Mediterranean waters and 120 in the Red Sea. and sweep away its nets. Another 40,000 motorless vessels ply the counCompetition over shing territory is trys 2,500-kilometre coastline. erce, says El-Haweet. Clashes are more Madani Ali Madani, sheries expert at likely to escalate when a foreign-agged vesEgypts General Authority for Fisheries Re- sel is involved. sources Development (GAFRD) says the probThe search for sh has taken Egyptian boats lem is not overshing, but rather poor distribu- as far as the Gulf of Aden, where piracy is a real tion. The vast majority of Egypts shing eet threat. At least a dozen Egyptian shing vesoperates from a cluster of ports at the mouth of sels have been attacked or hijacked since 2005. the Nile River on the Mediterranean Sea, and Most incidents go unreported. from the port of Suez on the Red Sea. - IPS
REUTERS
Dubai geas up fo next, modest economic boom

and spice trading days of the Arabian Gulf, Four kilometres o the coast of Dubai, more she said. The economy now appears to be than 200 tiny, man-made islands bake under the sun. Built ve years ago, they were to be embarking on another wave of growth during one of the emirates most spectacular projects, which it will serve similar functions as Hong an archipelago of resorts and luxury housing Kong and Singapore in Asia, supporting and laid out in the shape of a world map. proting from growth in industry and trade Apart from a few facilities such as a villa in a large region surrounding it. and a beach club, the islands are empty. After Dubais expansion plans are striking in that creating them at a cost of hundreds of millions they are being announced while the emirate is of dollars, state-owned property rm Nakheel still many years away from working through sold about 70 per cent of the land. But most of the debt pile it accumulated during last decthe buyers have lacked the cash or the will to ades boom and bust. go ahead with development plans. Standard Chartered estimates $48 billion of bonds and loans will mature between 2014 A little over three years after a corporate and 2016, including about $10 billion of redebt crisis drove it to the brink of default, structured debt at state-owned Dubai World Dubai is still littered with relics of the disaster, in the form of unnished real and Nakheel. Some of this debt estate projects and battered balmight have to be restructured a The economy ance sheets. second time, the bank said in a But it is laying the groundwork now appeas to research report. for another economic boom, based In December, Moodys Invesbe embaking on tors on its role as a tourism and busiService downgraded its credit anothe wave of ratings of three Dubai banks, inness hub for the surrounding region, and a haven for money from cluding the largest, Emirates NBD. gowth India, China and fast-growing It cited concern about problem FLORENCE EID, CHIEF countries in Africa. loans and said it was prepared to The next boom is likely to be EXECUTIVE, ARABIA MONITOR cut the ratings further. more gradual, partly because But Dubais ruler, Sheikh Monancing will not be as cheap and plentiful as hammed bin Rashid al-Maktoum, signalled it was during the excesses of the last decade. a push for growth in November, announcing Growth will depend more directly on services plans for a huge tourism and retail developthat Dubai provides, rather than on the ability ment including the worlds largest shopping of its real estate market to suck up money. mall, over 100 hotels, and a park 30 per cent But in some ways, the next boom could ribigger than Londons Hyde Park. val the last one, boosting Dubais population Since then a string of state-owned and priabout 50 per cent by the end of this decade and vate rms have said they are reviving projects pushing it deeper into a range of industries, mothballed during the crash or launching new ones. Plans even include more man-made isfrom food processing to diamond trading. lands: last month state-backed Meraas HoldFlorence Eid, chief executive of Londoning said it would spend $1.6 billion to build based research and advisory rm Arabia an island housing the worlds largest ferris Monitor, said some aspects of Dubai, such as its role as a relatively safe nancial centre, wheel, just a few kilometres from Nakheels were set back by the crisis and shown to be archipelago. Hotel industry consultancy STR Global esweaker than assumed. But some have actually been strengthened timates, based on its contacts with companies in the last few years, including its role as an in the industry, that Dubai hoteliers plan to operating base for businessmen from around add 19,000 new hotel rooms in the next few the region and as a centre for entrepot trade, years - almost a third of the current number which it has enjoyed since the pearl shing of about 63,000.
Fireworks explode around the Burj Dubai, the worlds tallest tower, during the opening ceremony in Dubai on January 4, 2010. Dubai is laying groundwork for another economic boom. AFP
14
REGIONAL NEWS
Cairo signed deal with Fund last November but postponed nal ratication in December
IMF team to visit Egypt tomoow fo talks on loan

cerns over power cuts and long queues at petrol stations, ruled out an emerAn IMF delegation will arrive in Egypt gency loan, as suggested by the IMF. tomorrow for talks with the governHe added that the country was still ment on a $4.8 billion loan, a governable to buy essential imports. ment spokesman said on Sunday, as (The supply) of wheat and loaves Cairo seeks to conclude a deal vital to of bread is safe, he told reporters. He added that indications of a higher hareasing a deep economic crisis. vest this year meant Egypt Spokesman Alaa would use locally-grown El Hadidi added that wheat in the place of the Egypt would not seek commodity that would any emergency loan Egypt seeks to otherwise have been imfrom the International Monetary Fund and boost investment ported. faced no crisis in fundHe played down as fom these ing the import of essen- counties and an speculation repeated tial commodities. media reports that Egypt opening of thei was seeking aid from Arab The most populous Arab country has been labou makets states Libya and Iraq. Egypt seeks to boost investment seeking a loan from the from these countries and Fund to ease economic EL HADIDI, GOVERNMENT an opening of their labour strains after two years SPOKESMAN markets (for Egyptians), of political upheaval. Hadidi said. Reserves of foreign currency have fallen to critically low levThe IMF said last week a technical delegation would visit Cairo in the els, threatening Egypts ability to buy in supplies of wheat, of which it is the rst days of April. worlds biggest importer, and fuel. Masood Ahmed, director of the President Mohamed Mursis govIMFs Middle East and Central Asia ernment initialed a deal with the IMF department, visited Cairo on March last November but postponed nal 17, saying the Fund would continue ratication in December in the face talks aimed at agreeing possible nancial aid. of unrest triggered by a political row Any deal with the IMF is likely to over the extent of his powers. Hadidi, seeking to allay public conrequire Egypt to commit to austerity
BY ULF LAESSING
BRIEFING
DAR ES SALAAM AfDB to fund Tanzania agriculture projects
The agricultural sector in Tanzania is set to benet from the African Development Bankfunded initiative known as the Support for Agricultural Research for Development of Strategic Crops (SARD-SC). The project targets to enhance food and nutrition security, and is focused on maize, cassava, rice, and wheat, which are considered as crops of strategic importance for Africa. Scientists say the initiative will help narrow the yield gap facing Africas strategic crops .
JUBA Bashir visits Juba for the rst time since secession
An anti-government demonstration in Port Said on February 22, 2013. Opposition groups have been regularly calling protests against President Mohamed Mursi which have often degenerated into violence. AFP measures, a very sensitive issue at a time when Mursi is facing protests over his management of the country. Shortages of subsidised diesel have paralysed transport in parts of the country as the Egyptian pound has lost nine per cent of its value against the dollar since late last year. The government is working on an economic programme where it plans to cut back on subsidies of fuel. Last year it eliminated subsidies on 95-octane gasoline, the highest grade available, and it raised fuel prices in many sectors last month. Mursis cabinet has said it plans to implement a subsidised fuel rationing system at the beginning of July, though local media reports have said the plan, already delayed several times, could be pushed back to January. The unrest of the past two years has driven away tourists whose spending accounted for around a tenth of GDP before the uprising. Hadidi said the number of tourists in February was 845,000, a 12 per cent increase compared with a year earlier. An IMF deal will unlock billions of dollars in further support for Egypt. Araby said this would include $1 billion from the World Bank in the scal year that begins in July, as well as half a billion dollars from the African Development Bank and assistance from the European Union.
- REUTERS
Sudans President Omar Hassan al-Bashir will visit his long-time foe South Sudan for the rst time since its independence this week, an ofcial said, cementing new deals on oil and border security between the two countries. The African neighbours agreed this month to resume cross-border oil ows and defuse tensions that have plagued them since South Sudan seceded in July 2011 following an agreement which ended decades of civil war. Bashir had originally planned to visit Juba a year ago but cancelled the trip.
LONDON
Glencores Pacorini makes rst Africa acquisition
Glencores warehousing and logistics unit Pacorini has made its rst move into Africa, breaking into a major growth region for its parent with the acquisition of South African logistics group Access Freight. A Glencore spokesman conrmed the move but declined to disclose the price tag of the deal, which has yet to be nalised. The acquisition, though small for the worlds largest diversied commodities trader, points to Africas importance to Glencore, and to the bolt-on deals that are likely to be top of the list as the acquisitive group nalises and digests the $32 billion takeover of miner Xstrata.
Zuma to join summit on Cental Afican Republic

South African President Jacob Zuma will attend a summit of central African heads of state in Chad tomorrow which will consider responses to the rebel takeover in Central African Republic. The South African leader was invited by Chadian President Idriss Deby, chair of the 10-nation Economic Community of Central African States, to join the extraordinary ECCAS summit in NDjamena on April 3, Zumas spokesman Mac Maharaj said. South Africa is facing questions about its role in Central African Republic after 13 of its soldiers were killed there last weekend as they fought alongside government troops trying to prevent rebels from ousting President Francois Bozize from power. The opposition in South Africa and regional analysts have asked why a South African military training mis-
South Africa is facing queries about the countrys military training mission in the Central African Republic where it became directly entangled in an internal conict. SA media reports have suggested that soldiers were defending South African mining interests in a country rich in diamonds, uranium, and oil.
sion in Central African Republic became directly entangled in the internal conict there. South African media reports have suggested the soldiers were defending South African mining interests in a country rich in diamonds, uranium and oil, but ocials in Pretoria have denied this. They say the presence of the 400 South African troops was covered by a 2007 bilateral defence accord with Bozize.
Maharaj told Reuters there was nothing unusual about the South African role in Central African Republic or Zumas participation in the extraordinary ECCAS summit in Chad. We want to participate and benet from the knowledge of the colleagues in the region, and share our ideas, he said. Zuma would be accompanied at the summit by his ministers for foreign aairs, state security and defence. On Friday, Central African Re-
publics new president, rebel leader Michel Djotodia, said he would review resource deals signed by the previous government and promised to step down at elections in 2016. Djotodia was responding to questions about resource licences awarded to Chinese and South African rms by Bozize. He added he would seek aid from former colonial power France and the United States to retrain the ill-disciplined army, a statement which appeared to be a blow to South African aspirations to maintain a role in Central African Republic. Maharaj said South Africas involvement there stemmed from calls by the African Union in the mid-2000s for African states to participate actively in moves to maintain stability and contribute to capacity-building in the central African state, which has a history of coups and revolts.
- REUTERS
KAMPALA
Poisoning scare hits Uganda shermen
There is growing panic within the shing sector in Uganda, with some shermen increasingly getting worried over allegations of poisoning. The sh poisoningclaims have been on since February last year, but they appear to have reached peak levels early last week when unknown shermen used poison to kill hundreds of sh species at random, near Tamper Landing Site in Entebbe. I had woken up at around 7am to go shing and found many young sh killed and oating near Tamper sh factory landing site, the defunct Ssese Gateway beach landing site and Guda landing site in Entebbe, Mr William Odhiambo said.
15
TUESDAY, APRIL 2, 2013
ENTERPRISE
INNOVATION: Creativity
offers man piped water and gas at no cost

Pages 16-17
AGRICULTURE:
Farmers reap from wonder tree

Page 18
daily operations and is in charge of employee wellness. The garage ts car tracking systems and is an importer of body parts and windscreens. The parts business, he told Business Daily, comes in handy when a client wants to overhaul a car. For husband and wife, the journey from a small stall in the suburbs to owning property in the central business district has been without hitches thanks to personalised service that invites referrals.
No media ad
He points out that although he has never used the media to advertise his services, once he did when he was denied an opportunity to deal in speed governors, but was again oered the chance. Mr Gakuru says the treatment occasioned me to buy space to let customers know that I am qualied to oer the services. Employees have been trained in the ways of honesty, but those who fail the test are asked to leave the company. Stealing from a clients car is one of the forms of dishonesty and those caught with their hands in the cookie can are given immediate dismissal. He explains: Without integrity and honesty, we cannot stay in business. I know that when you mistreat one client, you will lose another 10. I insist on and remind our employees to always be trustworthy. Other than following up on debtors, Mr Gakuru has enjoyed the business because, he adds, he is keen on the needs of the less fortunate.
Couple builds towns top gaage on tust and quality sevice

Gakuru partners with wife to leave a mark on vehicle repair business
BY MERCY GAKII
Mr Gakuru (left) with one of his employees yesterday. He has beneted from referrals more than media advertising to grow.
SULEIMAN MBATIAH
How to succeed
Proprietor writes formula for success in Nakuru
While other employers are cautious about on-the-job training, Seas Motors Garage says it increases gains. Proprietor Gakuru is keen on employee commitment and devotion to God. Employees are trained to be honest and trustworthy; those who fail the test are dismissed. Trust, the proprietor says, is worth-ofmouth marketing, which is cheaper than advertising in the mainsteam media. He offers related services like repairs, spare parts sale, and insurance.
STRATEGY Mburu
buru Gakuru rates trust and honesty as the some of the key foundations of his garage business of 20 years. He also says that the service Seas Motors Garage oers is the best. He told Business Daily: I make sure that the standard of service oered is second to none. To achieve such a feat, he says, his employees are required to make a commitment of giving only the best service and being available for regular training in line with the market trends. I contract respectable institutions to come every month and train my employ-
ees on tips and other secrets of success in business, and I pay for it. When he was starting o, he only had a training in mechanical engineering and a capital of Sh5,000, which he used to buy a few spare parts and get a space. Together with his wife Faith Mburu, they used part of the money to pay for a small space in the municipal council market in Shabab area, in the outskirts of Nakuru Town. While many employers do not pay attention to training on the job, Mr Gakuru reckons that the gains are higher than the cost of the courses. His employees are required to obey the companys code of conduct, which they agree to before starting to work. All employees, he says, must attend the training sessions monthly. They also must be part of the morning devotions that he conducts in the premises daily. Mr Gakuru is a preacher.
Pay fees
As a full-time preacher of the gospel, I have also taken it as my responsibility to help those that I can. I pay fees for some needy students, feed some elderly persons here in town, and I take care of my extended family too. Almost at the end of this interview, he said that he continuously goes for training and pays for online courses or read manuals. He has a library in his oce, which he uses for reference even during the interview. This way, he has made business contacts in as far places as Japan and other parts of the world. This is how he is able to get stocks with ease and consistently. Technology, has made communication easier, where, for example, orders are made on the Internet. This is how he saves costs of travel. mgakii@ke.nationmedia.com
My garage is clean, well-organised, and if you bring your car here, you can be sure to get it in the same state, with all parts intact, he adds. This is the strength that has given him referrals, the world-of-mouth marketing that continues to build his customer tree and guarantees Seas Motors Garage repeat purchase. Most insurers bring clients vehicles here for any repairs. Mr Gakuru has set shop o the main Nakuru- Eldoret Highway and sells both new and used vehicles, ts and sells car accessories. His wife operates the insurance agency wing of the business while supervising
16
ENTERPRISE
PEOPLE | IDEAS | NEWS
CREATIVITY Laban Okumu has been nding practical technica
Innovato bings coveted uban lifestyle to village

To succeed in business, you must regard yourself as a faithful employee of your rm and observe all protocol of employment. FOTOSEARCH
To be successful, teat you business like a job

adhere to ocial working schedules, most start-up entrepreneurs have to work 9am to 9pm, without o or leave days, until business grows. When employed people tell me of their desire to start a business, I always ask them BY MURORI KIUNGA why they think business is better than employment. In a recent forum I was asked a key question Some tell me they work hard and earn litwhat was my biggest challenge in business tle money and they feel if they put the same after quitting employment? eort in their own work, they would earn far Immediately, a challenge that gave me much more. sleepless nights came to mind. I tried to solve Often I get into trouble when I try to conit then but later realised it aected almost all vince them that this is hardly the case because self-employed people and like an incurable whereas business is more than doing what they do, practically it is not easy to put as much disease, it can only be managed. The challenge was that many people re- eort. It is easier for a camel to go through the eye of a needle than for most employed garded me as unemployed even up to today. When I quit employment to start my own people to treat their business with the same rm many people including my close friends seriousness as their jobs. and family members regarded and treated In self-employment, you dont have to reme as one who had no job. As such, they felt I port to anyone, there are no warning letters or was available for them at any time and to go push to meet targets and deadlines. There is no threat of dismissal or agonies anywhere. In social meetings of waiting until the end month if there was something to be Neve take or begging for an advance when done, they would unanimously pick me on the premise that I am emergency arises. Yet the conadvantage of available and exible since othsequences of treating a business the fact that casually are grave. ers have to get permission from you dont have To succeed in business, you their employers. to ask fo must regard yourself as a faithIn fact, one night a friend ful employee of your rm and called me requesting if I could pemission to observe all protocol of employpick his mother-in-law at his be out of oce ment. home the following day at o to access Set denite working hours, o 10.30am and drop her at the cash. or leave days and remuneration. upcountry bus station. The Never take advantage of the fact argument was he and his wife have to report to work early and that you dont have to ask for perit would be inconveniencing to wake up the mission to be out of oce or to access cash. Let old woman that early. When I told him to people around you know this in clear terms. call a taxi since I too report to work early, he If you show them that you are available any time, anywhere and you can access cash at will was oended. The assumption by most people is that simply because there is money owing into individuals running own businesses are not your business every day, you are concocting employed. The truth is that they are employed a recipe for failure. by self or by their rms. They are employees with responsibility like any other. Mr Kiunga is the author of EntrepreIn fact, start-up business owners shoulder a neurial Journey: From Employment to heavier burden of performance than employed Business. people. Unlike most employed people who Email: murorikiunga@yahoo.com
and needed plenty of water in an area where villagers had to walk two to bathroom installed with a three kilometres to fetch water from shower, a ush toilet and 24a spring at the slopes on the Nandi eshour electricity supply are concarpments. sidered the preserve of middle class or Thats when I knew my wife and upper class urban Kenyan homes. But women in my village were struggling one Laban Okumu will tell you otherwith the water problem, he says. wise. He used Sh7, 000 Mr Okumu has used from his savings to buy his ingenuity to blend the PvC pipes and cement serenity of a rural lifestyle I believe a lot can be to construct a water storwith the convenience of urage tank, then with no done as demonstated plumbing background, ban life in his rural village with my small in his homestead in Kajulu identied a spring atop in the outskirts of Kisum the Nandi escarpments esouces. It is all town. The only dierence and built a modest resabout commitment ervoir to collect and dibetween him and an urrect water by gravity to ban dweller he incurs LABAN OKUMU, ENTREPRENEUR no monthly charges. his home. I have free fuel, water Within a week I had and power in my home just like what plenty of water owing in the home most town residents enjoy, says Mr while others struggled to fetch water Okumu. two kilometres away, says the father His simplicity in dressing and charof eight. acter reveals little about him until he The Kisumu Water and Sewerage starts showing you around his homeCompany (Kiwasco) draws its water stead and the various products of his supplies from the same hills. Before Mr Okumu piped water into creativity. his homestead, he had tried sinking a Three well-tended sh ponds at well to no avail so he converted the 90the entrance to his homestead introduce you to the imagination of this feet hole into a septic tank for his modern bathroom and toilet. 42-year-old. Then an idea to help other villagers His story dates back to 2002 when he says his wife had just delivered twins struck him; he piped water to several acBY RAMENYA GIBENDI
Laban Okumu redirects where he farms Tilapia a
cessible locations from are charge Sh2 for eve can of water. The water trolled from his home, hours in the morning evening to avoid wasta I believe a lot can be strated with my small r about commitment, h Neighbours who lik had water supplied to th for which they pay a at of Sh100. All one needs i of pipes and taps. Mr Okumu has also alarm system to enable
Poulty fames adopt imp

BY GERALD ANDAE
Poultry farmers in the North Rift are adopting a dual purpose improved indigenous breed of chicken called Kenbro given its low cost of maintenance and higher earnings. This comes against a backdrop of increased cost of production for broilers and layers variety, where 70 per cent of the expenditure emanates from feeds, according to the stakeholders. Kenbro, which belongs to Kenchic, was developed by a French company. The eggs from this type of chicken are in high demand with one selling at Sh30 compared to Sh15 for those from indigenous breeds and Sh12 for exotic breeds. For long, we had registered numerous losses as a result of high cost in
maintaining broilers or layers, but with the Kenbro breed, that is now a thing of the past, says Patrick Shiyuka, a poultry farmer in Uasin Gishu County. Mr Shiyuka notes that Kenbro chicken, unlike the exotic breeds, are not heavy feeders and they can also feed on other types of feeds, not necessarily commercial ones. I feed these birds with cabbages and sukuma wiki, and they feed on them so well. This has played a signicant role in cutting down the cost that I incur in buying commercial feeds, says Mr Shiyuka. According to the farmer who has 150 birds, he uses a 70-kilogramme bag of commercial feeds every week, which he considers as low compared to those who are rearing layers or broilers. Triza Wanjiku, a poultry farmer who
Patrick Shiyuka, a poultry fa his Kenbro chicken . Kenbro
keeps pure exotic breeds of she spends a lot on feeds b them o after six weeks.
17
ENTERPRISE
BUSINESS GROWTH
cal solutions to the various challenges of rural living despite having no formal training
About his work
He used Sh7,000 to buy pipes and build a tank that now supplies water to his home from a spring. He sells water to his neighbours at Sh2 for a 20-litre can and Sh100 per month for a permanent connection. He has improvised an alarm system to detect illegal water connections or tampering with his piping. He is rearing sh in three shponds, which he sells. He has built a biogas plant that supplies cooking gas in his two homesteads. He heads a 10-man live-band where is the lead guitarist.
Despite political isk, it makes sense to do business in Afica
A cooking stove that uses biogas from cow dung.
WILLIAM ODHIAMBO
cts water into one of his shponds in Kajulu village, Kisumu, OWITI ia and mudsh. JACOB OWITI
illegal connections or tampering with the piping. The alarm is set-o when the pressure levels falls below certain levels. When the pipe breaks, is broken or someone diverts water, the pressure levels will be distorted thus setting o the alarm, he explains. And while neighbours and visitors alike marvelled at the inventiveness of Mr Okumu, he found another use for the constant supply of water he ventured into sh farming by constructing three sh ponds with a combined population of 2,000 sh. This, he says, was necessitated by the ever-shrinking sh output
Mr Okumu washes his hands in the shower he installed in his home. JACOB OWITI
om where villagers every 20-litre jerry ter is centrally conme, opening for two ng, afternoon and stage. n be done as demonll resources. It is all , he observes. liked his idea have o their homesteads at monthly charge ds is to foot the cost
also improvised an ble him detect any
from Lake Victoria that increased demand for the commodity that he sells to sh mongers. I am thinking of increasing my ponds because what I have hardly satises the many traders who ock to my home when I harvest, he says. After attending a few seminars on sh farming, Mr Okumu mastered the art of sh breeding and no longer buys ngerlings. Instead he sells them to villagers who are slowly taking to sh farming. He keeps Tilapia and mud-sh, which he says mature after six to seven months. While most people in the ru-
ral areas rely on rewood and charcoal for fuel, Mr Okumu has built himself a biogas plant that has the potential to supply his two wives with 12-hour continuous gas supply. I also have modied this ordinary charcoal iron box to use gas in ironing although I have the option of solar power, says Mr Okumu while demonstrating how it works. He says he would like to help everyone in the rural areas use biogas as the raw materials are readily available, but says the high initial investment cost is a huge deterrent for many. He says he gets plenty of gas from cow dung from his three cows and believes people who keep huge herds of cattle can get much more gas and save on fuel and the environment. Besides all the creativity of Mr Okumu who by his own admissions has no formal training in any eld, he heads a 10-man live-band where is the lead guitarist while his brother plays the bass guitar. I make and service all the guitars myself, he says. rgibendi@ke.nationmedia.com
oved indigenous beed of chicken

this type of breed that I keep is a heavy feeder, says Ms Wanjiku. Ms Mwangi who keeps 300 birds uses a 70-kilogramme bag of broiler mash daily that costs Sh3,870. According to Humphrey Mbugua, technical advisor Kenya Poultry Breeders Association, Kenbro is a hardy breed, compared to hybrid chicken and can be farmed free-range like the indigenous birds. Kenbro lays more eggs than indigenous chicken and has lean, soft, high quality meat that is very popular with consumers, says Dr Mbugua. Dr Mbugua says the breed matures faster than local birds with proper feeding, adding that they start laying eggs at ve and a half to six months and can attain up to four kilogrammes. With good management, this breed is the best for farmers given their resilient nature, says Dr Mbugua. Depending on what the farmer wants, the bird can be managed to produce eggs or meat. When managed as a broiler with commercial feeds, it can achieve 1.5 kg in seven weeks, or after three weeks of brooding it can be managed on free range with minimal supplementary feeding and be ready for consumption or sale after 10 to 14 weeks, according to Dr Mbugua. Out of 150 hens, Mr Shiyuka collects 149 eggs daily, noting that the production ability of this breed is near a hundred percent. Another advantage of this breed, he says, is that they do well with any type of commercial feeds, whether high or medium yield.
ast week, the whole country held its breath as we awaited the judgement of the highest court in the land. The question in many peoples minds was: what if it gets ugly and my business gets aected? Political risk in Kenya is real. The electoral process has been associated with violence in the past, even before 2007. The post-election violence of 2007 only magnied an existing problem and gave it the attention of the international community. In the process, there were billions of shillings lost and some businesses never recovered. This informed the wait-and-see attitude among the business community in the just-concluded elections. But the economy has not just survived the elections, it has prospered during the process. While a few investors and entrepreneurs were fearful and closed shop, even ew away, a majority of us continued making money. The NSE 20 Share Index is bullish and demand is building up. Businesses are running as usual and the peaceful elections preserved the economy as no losses were reported. The 2012 results by companies are still attracting investment. I believe Kenyans learnt the hard way the importance of peace after 2008. Yet in all this, political risk is not a deterrent to business in Kenya or Africa at large. Africa is attracting investment from all over the world as opposed to aid. Further, the growing and resilient economies are a wonder to the whole world. During the world economic recession of 2008-2009, the African economies surprised the world with sterling performance. And of course our politics is getting sanitised by the day as demonstrated last week. Kenya is attractive to outsiders, and it must remain attractive to the insiders, given the potential it portends. To do business around this season, take an appropriate insurance cover, minimise your cash balance at the shop and maximise the physical security at the premises. However, the best protection to your business in any politically unstable area is to remain relevant in the community you are working. Political risk in Africa is getting smaller by the day, while the returns are growing each second. It makes great economic sense to do business here. Mr Odhiambo is the Managing Consultant of Elim Consulting, which conducts training, advisory and research on nance, enterprise development and economic policy.
y farmer at Kapchegenya village in Uasin Gishu County with bro chicken are improved indigenous breeds. JARED NYATAYA I use not less than Sh64,000 on feeds alone. This is because the cost of commercial feeds has gone up and
s of broilers says s before selling s.
Supreme Court judges during the hearing of the just-concluded Presidential election petiton. FILE
18
ENTERPRISE
AGROFORESTRY Loggers nd alternative source of timber following ban on exploitation of forest resources
ith the governments eort to conserve gazetted forests, saw millers have found an alternative deciduous tree growing in many dry areas in Kenya and the rest of East Africa. At the moment, timber users are experiencing a serious shortage of hard wood like camphor and mahogany. With the government actively encouraging in forest re-growth to increase the paltry 2.7 per cent national coverage through banning of timber harvesting, precious wood products have become scarce. The Mukau tree (Melia volkensii) is mainly grown for its timber, which is durable and termite resistance. The timber is used in the building industry as well as furniture. Grown is dry parts of East Africa, it is also a choice timber for the making of log hives. The tree is also planted around homestead to provide rewood and shade. It also grows fast with a rotation of 10 to 15 years. The owers of the tree also provide excellent bee forage. Its twigs, leaves and fruits are good fodder for livestock and especially in the dry season when herbage becomes scare as grasses and shrubs dry up and become scorched. It is a hardy and well adapted tree for dry parts with good produce in form of timber and fuel wood products, says Abdi Zeila, a researcher with the Nairobi-based World Agroforestry Centre, formerly ICRAF.
Fames eap fom wonde tee, ease pessue on foests W
A single mukau tree will grow to between six to 10 meters in height while laterally expanding to 25 centimetres in diameter. The prices of Mukau tree are usually good with timber fetching more than four times higher compared to exotic tree species like cypress. Its price ranges from Sh600 to 1,000 in most of the dry areas but has also been sold at Sh2,500 and Sh3,000 shillings while taken to longer distances especially those seriously aected by the logging ban. There has been an increased demand of Mukau for the last few years. Saw millers coming from far have ocked our region looking for the tree making its farm gate price to skyrocket, says Beatrice Nduda, a farmer in Kitui, one of the driest areas in the country. This increased demand has also added value to marginal areas in the country. In a country where three-quarter of the land surface is dry, growing of a good quality hard wood has brought hope to the eorts of emancipating inhabitants in these regions from poverty and other social maladies. The tree is found at altitudes of 3501,700 metres above sea level. These areas straddle Kenya, Ethiopia, Tanzania and Somalia. High temperatures and a mean annual rainfall of between 300 and 800 mm characterise them. While the soils in these areas are
Benets of Mukau tree

Timber from the tree is used in making of log hives. It is grown in homesteads to provide rewood and shade. Contains toxic substances that are used to control ticks and eas. Provides timber for building and furniture industry.
poor in supporting arable agriculture, researchers at the World Agroforestry
Logging in Sabor Forest in Keiyo District. The move by the government to ban logging in public forests has resulted in a shortage of valuable timber used in building and the furniture industry. JARED NYATAYA
Centre report that they can support cultivation of Mukau with a lot of benets to the communities. Most soils in these areas are sandy, clay and shallow stony soils. Research has also shown that the tree has other important attributes.
Like the neem tree (Azadirachta indica), the Mukau contains compound toxic to insect and in these marginal areas has been traditionally used to control ticks and eas. Research has also established that extracts of Mukau possess larvicidal and growth inhibiting eects on insects. It has also been used against the desert locust (Schistocerca gregaria), an added benet for the arid parts. In human medicine, Mukau has some properties against some tumour cell lines. Mature seeds can be collected all the year round and a mature tree can produce up to 300kg of fruit annually. At harvesting time, the fruits have high moisture contents (about 40 percent) and must be dried. With the rising popularity of the tree as a source of timber, its seeds are fetching as much as Sh200 as farmers scramble for them. However, the biggest problem with this species is its propagation constrains. It exhibits poor germination performance, with high mortality in young seedlings. Researchers at the Kenya Forestry Research Institute in collaboration with the Japan International Cooperation Agency have developed practical seed cracking techniques to improve water penetration and germination rates. In most dry lands regions in Africa, acacia species provides most of the fuel wood requirements. A shrub, its biggest problem is that it is limited by height and rarely produces good quality timber. Obtaining wood for furniture and building in dry parts of the continent is one of the biggest challenges. Local inhabitants have to resort to other type of building materials like stone and bricks to construct their dwellings.
- XINHUA
Exotic shub seedling sets Nyei oist on path to iches

BY BONIFACE MWANGI
When George Mutahi Kiranga visited a friend in Nairobi, he came across a tree seedling that resembled cider. Its striking beauty and scent caught his attention. He urged the friend to give him one of the seedlings for planting in his compound but little did he know that with time, it would be a source of his livelihood. Since his friend had two, he gave him one. Mr Kiranga, who is the proprietor of Gadernia Trees and Flowers Nursery in Nyeri town, says that the unfortunate thing was that the tree, commonly known as Golden Italian Cyprus, does not produce seeds early and therefore it was dicult to multiply it. And if one had to wait for the tree to produce seeds, says the 72-year-old man, then it would take many years since it takes a lot of time to mature
and produces seed. This made him to come up with an idea of propagating the plant whose origin is Italy for sale. It was dicult to breed the tree yet it was so beautiful, I thought of trying propagation and it succeeded, he says. Mr Kiranga adds that after propagating the four seedlings, he sold the tree his friend had given him at Sh3,000. When he later visited the person he sold the tree to, he found out that the it had become very beautiful and this is when he decided to nurture the ones he was left it and got the urge to propagate more for sale since they were not common in the country. He says he developed a new way to propagate the tree, which he says is a guarded secret so that nobody steals his idea. I had almost given up in nurturing the golden Italian cyprus but when I saw how beautiful
About the plant

Golden Italian Cyprus is an exotic tree whose origin is Italy. Its a conifer with shallow roots, which grows up to 10 feet high. It takes long to mature and produce seeds but can be bred using propagation techniques.
the tree had become I decided to do more propagation and increase their number for sale. Four years later, Mr Kiranga has
nurtured more than 2,000 seedlings at his Kiandu home in Nyeri, which he sells to his customers at between Sh3,000 and 5,000 depending on the size. The tree grows up to ten feet tall forming a cone shape with shallow roots, which distinguishes it from other cider trees and makes it possible to be grown in a ower vessel. Mr Kiranga says: The growth of these trees is very slow so they are not common in the market, they also do not grow very tall thus suitable for decorating places. He says the tree is used to beautify homes and drive ways. The orist also helps his customers, mostly home owners, with landscaping of their compounds. And to attract more customers, Mr Kiranga also oers advises those who want to design for themselves on the steps to follow when planting and how to attend to owers and the trees.
The business, he says, has enabled him to earn a living and support his family. For the last four years, the tree has been the great source of income for me and it has enabled me to meeting my familys daily basic needs, says Mr Kiranga. He discloses that the business earns him more than what he used to earn when he was a councillor. The entrepreneur says that given an opportunity to landscape the Nyeri County, he would change the face of the town by making it a unique. If the new county government would buy stock from us and involve us in landscaping, we can turn Nyeri town into a golden town just like some cities in Italy the origin of the tree, making other counties envy us, he says. mwangib@ke.nationmedia.com
19
MONEY & MARKETS

PRICES I RESULTS I DATA
Tough ules foce Unaitas to shelve NSE listing plans

BY SAM KARANJA
PEFORMANCE Co-operative society opts to focus on expansion strategy following strong nancial results in 2012
can be accommodated. The CMA should provide the Unaitas Sacco has announced that it structures where we can list and rewill proceed with its ambitious expanmain compliant with other regulators sion plan even as it ditched the prolike Sasra (Saccos Societies Regulatory Authority), he told Business Daily. posal to list on the Nairobi Securities The Muranga-rooted Sh4 billion asExchange (NSE). Chief executive Tony Mwangi said at sets nancial services rm, that is set last weeks AGM that plans to list on the to move its headquarters to Nairobi, NSE under the Growth rebranded last year from and Enterprise Market Muramati Tea Sacco and Segment were not feasihas since targeted growble due to stringent rules Fo a coopeative ing towns for expansion. by the regulator. Mr Mwangi said that society to four more branches would For a cooperative paticipate in any be opened in selected counsociety to participate in any listing on NSE, listing on NSE, it ties in addition to the 15 Unaitas already operates. it will always have chalwill always have lenges as the share capiHe said that the rm challenges as the had opened branches in tal is unlimited unlike a company which has auOngata Rongai and most shae capital is recently Nakuru town as it thorised share capital, unlimited aims to establish a national he said. In short, a coopera- TONY MWANGI, CHIEF EXECUTIVE, presence. UNAITAS SACCO tives register is open for Unaitas was launched existing stakeholders to on July 17 last year to faciliincrease holding without buying from tate the expansion. It was founded by a others while new members are always small group of tea farmers in Muranga welcome. For stock exchange registers, in 1993 and has slowly grabbed a large shares can change hands daily but the share of tea accounts, which have susissued and authorised stocks remain tained a number of banks in the area. Mr Mwangi, while addressing jourconstant. Mr Mwangi asked the Capital Marnalists on the sidelines of the societys kets Authority (CMA) to engage with annual general meeting in Muranga stakeholders and see how the societies town last Thursday said that Unaitas
Nation Media Group chief executive Linus Gitahi (centre) with Unaitas Sacco chief executive Tony Mwangi (left) and chairman Joseph Ngaai at the co-operative societys annual general meeting in Muranga last week. SAMUEL KARANJA
had seen a huge growth of membership, mostly from outside Muranga, since it re-branded a few months ago. The rm witnessed a 137 per cent increase in members from 47,533 as at December 31 2011 to 113,048 members by December 31, last year. Unaitas says total assets grew from Sh2.8 billion in 2011 to Sh3.9 billion in 2012, accounting for 39 per cent rise. The loan book also grew tremendously during the same period, rising from Sh1.5 billion to Sh2.3 billion, said Mr Mwangi. Unaitas is set to pay Sh0.90 dividend per share of Sh10. In total it will pay out Sh36 million to shareholders from a Sh179 million surplus. Sacco chairman Joseph Ngaai said that the strong performance last year would boost Unaitas expansion plans. The result acts as a strong base for Unaitas to position itself for an ambitious nancial and operational performance in 2013 where we have projected a 60 per cent rate growth in assets and 70 per cent in turnover, and an eciency rate of 65 per cent, he said in his report. He said that non-performing loans had fallen by more than 10 percentage points. Unaitas strategy this year, he said, would focus on intensive loan recoveries, reduction in portfolio concentration risk and loan book growth. Nation Media Group CEO Linus Gitahi who was the chief guest during the event challenged the Sacco to remain on upward trajectory and continue to serve its clients diligently. I urge you to remain focused in your vision and also balance both short term and long term plans, said Mr Gitahi. Unaitas hails from the same roots as Equity Bank in Muranga. Equity has within a decade catapulted itself into the top ve bank rank from a non-bank institution perhaps providing incentives for other institutions to follow suit. samkache@gmail.com
Seach fo WTO diecto-geneal entes cucial stage

BY ALLAN ODHIAMBO
The race for the World Trade Organisations (WTO) top job has entered a crucial phase as consultations begin to shortlist applicants who best qualify for the position. A time table on the selection process shows that WTO General Council chairman Shahid Bashir will today commence consultations aimed at helping members build consensus and gradually trim the number of applicants for the position of director-general until a nal candidate is appointed not later than May 31. An informal meeting between Mr Bashir and heads of delegations from the competing countries on March 13 agreed that the selection be conducted
in three rounds with only two candidates making it to the nal round. Four candidates would be expected to withdraw in the rst round of talks and another three in the second round. The outcome of the consultations shall be reported to the membership at each stage. Accordingly, the outcome of this rst round of consultations will be reported to all members at an open-ended meeting of heads of delegation to be held as soon as possible following the conclusion of the rst round of consultations, Mr Bashir said. He will be assisted by chairpersons of the Dispute Settlement Body, Jonathan Fried and the Trade Policy Review Body Joakim Reiter. Ms Amina Mohamed of Kenya (pictured) and Ghanas Trade minister Alan
Talks to shortlist the best candidates for the WTO top job begin today. They will be picked in three rounds with only two making it to the nal one.
John Kwadwo Kyerematen are the only candidates from Africa hoping to succeed Pascal Lamy as director-general of the WTO when he retires in August after completing two four-year terms at the helm of the global trade body.
Homestretch
Others eyeing Mr Lamys position include Mexicos Herminio Blanco, Costa Ricas Anabel Gonzlez, South Koreas Taeho Bark, New Zealands Tim Groser, and Ahmad Hindawi of Jordan. Mr Mari Pangestu of Indonesia and Brazilian Roberto Carvalho de Azevdo have also been nominated for the WTO job. The rst round of talks will be concluded by April 9, leaving only ve candidates in the race to succeed Mr Lamy. In respecting the dignity of the candidates and the members nominating them, members who nominated candidates will be informed of the outcome immediately after each round and before the rest of the membership. This process will be repeated after each round of consultations, so as
to ensure transparency, inclusiveness and full participation in every step of the process, Mr Bashir said. Kenyas nominee, a law graduate from the University of Kiev, has served as a civil servant for 26 years. She joined the public service as a legal adviser in the Ministry of Foreign Affairs and rose through the ranks to the position of PS in the Justice ministry in 2008. She left three years later to join the United Nations Environment Programme as deputy director and UN assistant secretary-general. Africa like other emerging market countries is seeking to have one of their own in charge of the Genevabased trade club, after the top jobs at the IMF and the World Bank went to a European and an American.
20
MONEY & MARKETS
EABL stock to come unde pessue ove debt

SHARES Analysts say the beer brewing
EABL Performance
Firm was weighed down by high costs including servicing a loan from the parent rm, pushing down its net prot by 14 per cent in the half year to December 2012. Six months to Dec312012 Sh-bn Net Revenue Cost of sales Selling and distribution costs Net nance costs 30.633 16.204 2.541 Growth%
companys stock is over-priced by Sh100

son for the reduced prot is the nance costs that more than tripled to Sh2.1 bilEast African Breweries Limited (EABL) lion during the six months compared may be currently overvalued by over to 2011. Selling and distribution costs Sh100 a share, taking into account the rose by 10 per cent. recent nancial results and the expectaOur analysis shows the share is tions for this year, analysts say. at least Sh100 higher than the price it The price should be about Sh200 should be valued at and we have recommended a sell, said Eric Musau, a share instead of the Sh311 average a senior research analyst price it traded last Friday, at Standard Investment they claim. The stock hit a high of Sh320 with a low of Bank. Sh310 last Friday. The high- Ou analysis shows Mr Musau said the est price reached in the last the shae is at least heavy nancing costs of the 12 months is Sh325 . Sh100 highe than company as well as capital Analysts point to the fall expenditure were likely to in dividend per share (DPS) the pice it should continue to eat into the and the expected payout as companys prot. be valued at ERIC MUSAU, well as the erce competiThe rm took a lot of RESEARCH ANALYST tion in the industry. The debt to buy a stake at another company but the ininterim DPS fell by 40 per terest jumped quite high, cent to Sh1.50 as the comsaid Mr Musau. pany sought to conserve cash for its capital expenditure amid huge nancThe loan provided by Diageo, the ing expenses. parent rm of the company, was to buy In the six months to December 2012, Serengeti Breweries. the net prot also fell by 14 per cent to Fall in dividend per share (DPS) by Sh3.8 billion, even as the net revenues 40 per cent is not good for the brewer went up by 10 per cent. The main reawhich is a mature company and is exBY GEOFFREY IRUNGU
10% 13% 10%
2.061 3.755
221% -14%
East African Breweries bottling plant in Ruaraka. The companys DPS fell by 40 per cent to Sh1.50 as it sought to conserve cash for its capital expenditure. FILE
pected to increase its dividend payout. The share price is receding and expected to continue dropping, said ABC Capital in a note to investors. But Mr Musau said investors who are buying while looking four to ve years down the line may still buy the share. You will have buyers such as foreign investors who are looking at the longterm but still want to get the share. But they may have to wait for four to ve years before realising a good return on their investments, said Mr Musau. Caleb Mutai, a dealer at Tsavo Securities, said though EABL price was high, there was room for growth, especially in view of the ongoing investments. If the share is overvalued this year, it may not necessarily be the case in future because some investors may decide to look at the long term, said Mr Mutai. ABC Capital reckoned that EABL which has made a foray into new markets of South Sudan and the Great Lakes Region while aggressively protecting its East African turf, is under
Net prot
SOURCE: COMPANY REPORTS
threat from SAB Miller. Noting that EABL was equally pressured by smaller brewers, ABC Capital said the rm was eying growth from the middle-class. Underdogs in the name of Keroche and Heineken are taking o pebbles from its most protable region, Kenya. The dominant brewer is banking on low beer penetration, growing middle class and the new markets to grow, said ABC Capital. girungu@ke.nationmedia.com
Retun of foeign investos to shoe up bouse afte poll

BY CHARLES MWANIKI
Analysts were betting on a stock bull-run as the market resumes trading today after a long Easter break and conclusion of the presidential elections. Markets watchers say the reduced political risk which coincided with a strong return to the market of foreign investors will lift the bourse and bridge last weekends rebound. The Nairobi Securities Exchange (NSE) 20 Share Index gained 147.23 points or 3.13 per cent on the previous week to close the four-day trading week at 4860.83 points largely on account of large caps. Stock analysts say foreigners are driving equities after the mid-month prot-taking saw the bourse drop from the four-year high 4985.9 points registered on March 12. Equity turnover rose by eight per cent in the week to Sh2.55 billion from previous weeks Sh2.36 billion on the back of strong foreign inows.
Index gains
The Nairobi Securities Exchange (NSE) 20 Share Index gained 147.23 points or 3.13 per cent on the previous week to close the four-day trading week at 4860.83 points. Equity turnover rose by eight per cent in the week to Sh2.55 billion from previous weeks Sh2.36 billion.
Suntra Investment Bank market analyst Johnson Nderi said the market was bound to experience renewed investor condence after the political risk occasioned by the ercely contested elections dissipated with the Supreme Court judgment that Uhuru Kenyatta was validly elected. The risks and fears associated with the elections have gone and with investors showing willingness to come into the market we are seeing the recovery of the bourse, said Mr Nderi. Others say that attractive dividends that have been
declared by several companies will help keep demand up as investors try getting into the registers before they close. Investors will also be keen to take advantage of fairly priced stocks. Nation Media Group, which announced a Sh10 per share dividend and a bonus issue last week saw its share price rise by 10.6 per cent to Sh355 while Jubilee Insurance gained 15.2 per cent ahead of its 2012 earnings announcement this month. Safaricom, the largest capitalised company on the NSE, also rebounded by 3.4 per cent tosix shillings per share as foreign investors turned net buyers on the counter. Following a three-week lull, foreign investor inows jumped 125 per cent weekon-week to Sh1.022 billion. EABL recorded the highest foreign inows at Sh433.5 million, while Kenya Airways recorded the highest foreign outows at Sh19.63 million, said Standard Investment Bank research note.
21
MONEY & MARKETS GLOBAL
Bank changes tack in new eot to x the euozone cisis

ECONOMY ECB says will not cut rates or make
Fome Mogan Stanley woke launches fund

A former fund manager at Morgan Stanley Asset and Investment Management launched a Japanese equity longshort hedge fund on Monday, betting on interest from overseas investors after a recent surge in Tokyo stocks. Tsukasa Shimoda, the founder and president of Galleyla Investment, said his long-short fund the UMJ Galleyla Fund has the capacity to take in up to 20 billion yen ($213 million). The fund will slowly close subscription when its asset size approaches capacity. The fund, which has already received start-up capital from two foreign investors, is expected to reach capacity within one to two years, he said. Shimoda said his fund has been gaining attention from foreign investors after expectations for Prime Minister Shinzo Abes reationary scal and monetary policies helped boost Tokyo shares by more than 40 per cent since November.
major policy announcements for the time being

The European Central Bank will hold for the time being. The ball remains o from cutting rates or announcing in the court of national governments any other policy moves at its meeting and parliaments, said Berenberg Bank this week so as to keep up pressure on economist Christian Schulz. governments to solve the eurozones The failure in Italy to form a government, but also the potentially dancrisis, analysts said. The ECB has never hesitated to act gerous precedents enforced by credias reghter in the long-running critor countries in Cyprus are mostly to sis, which seemed to have blame for the increased abated until political griddownside risks to the lock in Italy and the crisis he argued. The ball emains economy, in Cyprus sent shockwaves By allowing market in the cout through nancial markets uncertainty for a bit longonce again. er, the ECB may raise the of national Throughout the cripressure on governments govenments and sis, the central bank has in core countries and the paliaments slashed its key interest periphery to behave, rates, pumped more than Schulz said. CHRISTIAN SCHULZ, BERENBERG 1.0 trillion euros ($1.3 Analysts are almost BANK ECONOMIST trillion) into the banking unanimous that additional rate cuts are not on system to avert a credit the cards. crunch and sought to The ECB has held its benchmark tame borrowing costs in worst-hit re rate steady at an all-time low of countries by buying up their sovereign bonds. 0.75 per cent since July. A re rate cut cannot be ruled out The moves appeared to pay o, entirely at Thursdays meeting. Still, allowing the markets to enjoy an exwe believe no more change to the key tended period of calm, at least until recently when elections in Italy ended rates is likely as the governing council in a political stalemate and Cypruss appears to regard a rate cut as a less parliament rejected the terms of a eective tool, said Commerzbank tough bailout deal with its internaeconomist Michael Schubert. tional creditors. First of all, in their view, the level of the key rate is not the main problem But while all eyes will be on ECB chief Mario Draghi to calm the markets but the fact that lending rates in the once again when he holds his regular periphery do not reect the low policy monthly news conference on Thursrate, Schubert said. day, ECB watchers say the central bank Furthermore, the latest decline looks likely to keep its gunpowder dry in sentiment indicators across the
Eyes will be on ECB chief Mario Draghi (right) when he holds his regular monthly news conference on Thursday. He is with board member Jorg Asmussen. AFP
17-country area is likely to be owing to the political trends in Italy and Cyprus, and these can hardly be tackled through lower rates, the expert argued. At the last meeting in February, Draghi conceded that a rate cut had in fact been discussed, but the prevailing consensus was to leave rates unchanged. chartered territory and should thus be an emergency measure only, he said. The deposit rate is the rate which the ECB pays out to banks for parking their money with it. Pushing the deposit rate into negative territory is potentially risky because while it could spur banks to lend money rather than paying a penalty to the ECB, it would also reduce protability and force banks to raise lending rates they charge customers to make up the dierence. Commerzbanks Schubert pointed out that both Draghi and other governing council members have suggested that a negative deposit rate could bring with it severe consequences. In a nutshell, we dont expect any changes in policy, said Piazza at Newedge Strategy. A sudden move would be seen as a sign of panic and would only serve to erode condence still further, she said.
- AFP
Built condence
It was a rare launch in Japan in the past year, after the $1.3 billion-loss cover-up scandal of Tokyo-based asset manager AIJ Investment in early 2012 rocked the fund industry, forcing many domestic pension funds to review their portfolios in hedge funds. Ive built my condence as I was able to produce healthy investment results after managing this fund for the last three years, Shimoda said. In recent years, many Japanese fund managers have set up new hedge fund companies in the regions hubs in Hong Kong or Singapore, but Galleyla decided to stay in Japan. I chose to stay in Japan because I have my family here. I also felt it was more ecient to stay here to conduct research and to be close to companies, Shimoda said.
- REUTERS
Uncharted territory
Newedge Strategy analyst Annalisa Piazza predicted the ECB chief would use similar wording again this time. However, we suspect the current economic scenario has not deteriorated enough to convince more governing council members to support the idea of a cut, she said. Schulz argued that a rate cut was also unlikely because it would take one of the ECBs other key rates, on its deposit facility, into negative territory, since it currently stands at zero per cent. This would take the ECB into un-
Japan industies egiste st gowth in thee quates

Condence among large Japanese manufacturers improved in the rst quarter, a central bank survey showed Monday, as Tokyo works to reverse years of limp growth in the worlds third-largest economy. The results marked the rst improvement in three quarters with companies expecting a pick-up in sales and prots. But they were cautious in their capital spending plans and the gures remained in negative territory, meaning a majority of surveyed rms are pessimistic about the future. The economy has come out of the worst period, said Takeshi Minami, economist at Norinchukin Research Institute. There is no doubt that the mood has improved thanks to the weaker yen. But the uptick was not as strong as some observers had expected, and it comes days after ocial gures showed Japans factory output slowed in February, highlighting the weak state of the economy and underscoring the size of the governments task in sparking sustained growth. The Bank of Japan (BoJ) holds a policy meeting this week as its new governor, Haruhiko Kuroda, talks up his plans to stoke the economy and reverse years of falling prices which have crimped private spending and corporate investment. His vow to beat dethat tend to weaken the yen, helping the countrys exporters. The BoJs latest Tankan survey showed sentiment at minus 8 for big rms between January and March from minus 12 three months earlier. Those gures represent the percentage of rms saying business conditions are good minus those saying they are bad and are a key measure used by the BoJ in formulating monetary policy. Japans overall economic picture remains unsteady, although the nation squeaked out of recession in the last quarter of 2012. The 0.2 percent expansion in GDP on an annualised basis in the quarter to December was welcome news for Abe, whose rst few months in oce have seen renewed optimism over the state of the economy which has suered growth-sapping deation for years. Falling prices are bad for the economy because they encourage consumers to put o spending in the belief goods will be cheaper in the future, softening demand and hurting producers. Markets have cheered Abes policies, dubbed Abenomics, sending the benchmark Nikkei 225 stock index soaring in the past four months, while speculation over monetary easing measures has helped push down the value of the yen.
- AFP
Manufacturers capital spending plans remained in the negative territory.

ation, a mantra led by his boss Prime Minister Shinzo Abe, has stoked speculation that the BoJ will launch a new wave of aggressive policy measures
Cautious step
22
MARKET DATA
Commodities
Agro Commodities Market

Early Morning wholesale commodity prices for 28th March 2013
COMMODITY CEREAL Dry Maize Green Maize Finger Millet Sorghum Wheat LEGUMES Beans Canadian Beans Rosecoco Beans Mwitemania Mwezi Moja Beans Dolichos (Njahi) Green Gram Cowpeas Fresh Peas Groundnuts ROOTS & TUBERS Red Irish Potatoes White Irish Potatoes Cassava Fresh Sweet Potatoes HORTICULTURE Cabbages Cooking Bananas Ripe Bananas Carrots Tomatoes Onions Dry Spring Onions Chillies Cucumber Capsicums Brinjals Cauliower Lettuce Passion Fruits Oranges Lemons Mangoes Local Mangoes Ngowe Limes Pineapples Pawpaw Avocado Kales OTHERS Eggs Unit Bag Ext Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Bag Ext Bag Med Bunch Med Bunch Ext Bag Lg Box net Bag Bag Bag Bag Bag crate Bag Bag Bag Bag Bag Sm Basket net Dozen Lg Box Bag Bag Tray Kg 90 115 90 90 90 90 90 90 90 90 90 90 51 110 110 110 99 98 126 22 14 138 64 13 142 38 50 50 44 39 51 57 93 95 126 25 13 13 54 90 50 Code 20 19 41 42 48 4 5 7 6 35 46 45 27 44 29 30 43 31 9 2 3 13 32 22 23 11 14 12 8 10 17 25 24 16 21 36 18 28 26 1 15 47 Nairobi 3200 3600 5500 5400 Mombasa Kisumu 2850 4900 8100 3600 3600 2400 7200 4000 Nakuru Eldoret 2600 1800 5200 2700 3600 2500 2250 6720 4050 3500
Food pices up
Jakarta
An Indonesian vendor arranges fruits at a market in Jakarta yesterday. Food ingredients quickened Indonesias ination in March to 5.9 per cent yearon-year, surpassing the central banks range target of 5.5 per cent, the statistics ofce said. AFP
4200 6200 6200 4200 7200 6500 4000 1700 13000 2400 2500 2200 4300 1700 480 560 3000 5200 700 2200 3000 1900 2800 2000 2800 2600 3800 1900 1900 800 700 910 2200 2800 1300 300
6000 6000 7200 6300 4500 1750 13200 1750 2300 1600 3200 1900 500 700 3250 4800 850 1500 1520 2250 4000 1760 1950 1800 6000 3000 2400 2500 1000 600 960 1000 3250 1200 360
7500 7200
7200 8000 2500 9400 4000 4000 1600 1800 900 300 300 3500 4000 600 1100 1100 1500 1200
5000 4500 4500 8100 6300 6300 2700 9900 3300 3300 2600 1200 500 350 2000 3500 750 1200 3800 4000 3000
8100 8100 9000 11250 6300 2040 10800 2600 2400 1600 700 1000 630 1200 5200 650 1000
Africa investor performance index

28th March 2013
COMPANY SAB MILLER ANGLO AMERICAN SASOL MTN GROUP STANDARD BANK ANGLO PLATINUM ANGLOGOLD ASHANTI LTD TULLOW OIL PLC MAROC TELECOM DANGOTE CEMENT PLC ORASCOM CONSTRUCTION ATTIJARIWAFA BANK NIGERIAN BREWERIES BANQUE MAROCAINE DU COMMERCE TELECOM EGYPT VODAFONE EGYPT BANQUE CENTRALE POPULAIRE LAFARGE DOUJA PROM ADDOHA SONATEL SN GUARANTY TRUST BANK ZENITH BANK CGI GUINNESS NIGERIA PLC COMMERCIAL INTERNATIONAL BANK FIRST BANK ABU KIR FERTILIZERS EAST AFRICAN BREWERIES SAFARICOM LTD MAURITIUS COMM. BANK MOBINIL T M G HOLDING POULINA GROUP HOLDING ECOBANK TRANSNATIONAL INC STANBIC IBTC BANK PLC STATE BANK MAURITIUS BARCLAYS BANK KENYA BANQUE DE TUNISIE EQUITY BANK LIMITED KENYA COMM. BANK LTD TICKER SAB SJ AGL SJ SOL SJ MTN SJ SBK SJ AMS SJ ANG SJ TLW GN IAM MC DANG NL OCIC EY ATW MC NB NL BCE MC ETEL EY VODE EY BCP MC LAC MC ADH MC SNTS BC GUARANTY NL ZENITH NL CGI MC GUINNES NL CIB EY FIRSTBAN NL ABUK EY EABL KN SAFCOM KN MCB MP EMOB EY TMGH EY PGH TU ETIT BC IBTCCB NL SBM MP BCBL KN BT TU EQBNK KN KNCB KN SECTOR BEVERAGES MINING OIL & GAS TELECOMMUNICATIONS BANKING & FINANCE MINING MINING OIL & GAS TELECOMMUNICATIONS BUILDING MATERIALS CONSTRUCTION BANKING & FINANCE BREWERIES BANKING & FINANCE TELECOMMUNICATIONS TELECOMMUNICATIONS BANKS BUILDING MATERIALS REAL ESTATE TELECOMMUNICATIONS BANKING & FINANCE BANKING & FINANCE REAL ESTATE BEVERAGES BANKS BANKS CHEMICALS BREWERIES TELECOMMUNICATIONS BANKING & FINANCE TELECOMMUNICATIONS REAL ESTATE HOLDING COMPANIES-DIVERS BANKS BANKS BANKING & FINANCE BANKING & FINANCE BANKING & FINANCE BANKING & FINANCE BANKING & FINANCE COUNTRY SOUTH AFRICA SOUTH AFRICA SOUTH AFRICA SOUTH AFRICA SOUTH AFRICA SOUTH AFRICA SOUTH AFRICA GHANA MOROCCO NIGERIA EGYPT MOROCCO NIGERIA MOROCCO EGYPT EGYPT MOROCCO MOROCCO MOROCCO BRVM NIGERIA NIGERIA MOROCCO NIGERIA EGYPT NIGERIA EGYPT KENYA KENYA MAURITIUS EGYPT EGYPT TUNISIA BRVM NIGERIA MAURITIUS KENYA TUNISIA KENYA KENYA PRICE PRICE CHANGE* MKT CAP P/E SHARES IN US$ US$MN ISSUE MN 52.04 26.06 44.25 17.64 12.80 41.75 23.42 17.55 12.44 0.95 35.44 36.62 0.98 19.76 1.92 4.13 22.09 129.39 6.86 31.36 0.17 0.14 67.43 1.67 4.52 0.12 19.29 3.69 0.07 6.38 18.88 0.56 4.29 0.10 0.08 0.03 0.20 7.31 0.39 0.48 -0.4% -1.7% -1.2% 1.1% 2.0% -1.3% -2.5% 3.0% 0.6% -4.1% 0.8% 1.7% -0.4% -0.4% -0.5% 0.0% -0.9% 7.6% -2.1% -0.6% 4.6% 1.0% -0.4% -0.9% -2.2% -2.1% -1.0% 0.6% 2.9% -0.9% 1.6% -2.6% 0.4% -6.2% 0.0% 2.1% 2.1% -2.6% 11.2% 6.2% 86,604 36,247 29,792 32,836 19,656 10,896 9,014 15,880 10,935 16,129 7,299 6,881 7,386 3,398 3,279 992 3,824 2,260 2,161 3,136 4,884 4,240 1,241 2,468 2,702 4,035 1,623 2,917 2,822 1,598 1,888 1,151 773 1,687 315 1,061 1,089 741 1,460 1,435 19.5 9.4 9.2 12.4 11.1 38.6 9.0 47.0 13.0 19.4 12.7 11.8 28.4 42.1 8.6 2.8 12.2 12.3 10.2 11.7 9.5 8.5 28.4 26.5 8.2 7.9 8.0 23.1 14.6 11.0 -47.0 14.4 16.6 7.0 4.9 10.3 10.8 17.3 10.1 10.1 1,664.3 1,391.0 673.2 1,861.1 1,535.9 261.0 384.9 904.9 879.1 17,040.5 205.9 187.9 7,562.6 172.0 1,707.1 240.0 173.1 17.5 315.0 100.0 29,431.2 31,396.5 18.4 1,474.9 597.2 32,632.0 84.1 790.8 40,000.0 250.4 100.0 2,063.6 180.0 17,212.2 3,750.0 30,370.0 5,431.5 101.3 3,702.8 2,970.2
1750
3000 2600 900 2000 1800 650 1200 1400 1500 300
3800 2600 2200 600 400 2500 2400 800 290
2850 3500 3200 800 910 1080 1600 500 310
SOURCE: MARKET RESEARCH AND INFORMATION, MINISTRY OF AGRICULTURE. EMAIL MARKETINFO@KILIMO.GO.KE
Unit Trusts
Effective date: 26th March 2013
MONEY MARKET FUND ANNUAL RATE OLD MUTUAL COMMERCIAL BANK OF AFRICA STANBIC ZIMELE BRITISH-AMERICAN AFRICAN ALLIANCE KENYA SHILLING FUND SUNTRA INSURANCE COMPANY OF EAST AFRICA MADISON AMANA CAPITAL GENCAP HELA FUND CIC FIXED INCOME FUND AFRICAN ALLIANCE KENYA STANBIC FIXED INCOME FUND B1 STANBIC FIXED INCOME A STANDARD INVESTMENT BANK GENCAP HAZINA FUND CIC BALANCED FUND OLD MUTUAL / TOBOA ZIMELE BRITISH-AMERICAN BRITISH-AMERICAN MANAGED RETIREMENT FUND SUNTRA INSURANCE COMPANY OF EAST AFRICA CFC SIMBA FUND MADISON ASSET AMANA GENCAP ENEZA FUND CIC EQUITY FUND OLD MUTUAL OLD MUTUAL EAST AFRICA FUND COMMERCIAL BANK OF AFRICA BRITISH-AMERICAN AFRICA ALLIANCE KENYA SUNTRA INSURANCE COMPANY OF EAST AFRICA STANDARD INVESTMENT BANK STANBIC DYER & BLAIR MADISON ASSET AMANA GROWTH GENCAP HISA FUND CIC BOND FUND OLD MUTUAL BOND FUND BRITISH-AMERICAN DYER & BLAIR SHARIAH COMPLIANT INVESTMENTS GENCAP IMAN FUND CURRENCY SH SH SH SH SH SH SH SH SH SH SH SH CURRENCY SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH DAILY YIELD 8.20% 7.94% EFFECTIVE 8.52% 8.26%
9.42%
9.90%
9.03% 10.95% 9.01% BUY
9.42% 11.52% 9.39% SELL
100.75 9.73 142.06 177.10 121.86
104.41 9.98 149.93 182.28 122.89
67.68 100.67 12.41 329.92 137.58 147.32 173.92
70.87 104.32 13.00 350.04 144.44 155.07 179.45
Global Commodity Prices

27th March 2013
METALS & MINING
SYMBOL SYMBOL CURRENCY LAST LAST CURRENCY
USD USD JPY JPY USC JPY JPY USX JPY CNY 1132.3 1593.10 17.5 88.00 4159.00 343.45 1,052.00 4810.00 317.6
OIL & GAS

NET CHG CHG NET
14.10 -2.60 0.30 -1.00 12.00 0.10 4.00 30.00 3.45 SYMBOL BRENT CRUDE LIGHT CRUDE GAS OIL NO 2 HT OIL LIGHT CRUDE GAS NATURAL LIQUID PROP HEATING OIL BRENT CRUDE CURRENCY LAST USD USD USD USD USD USD USD USD USD 72.86 95.64 593.25 2.89 71.3 4.00 0.00 5.55 909.50 1.93 109.44 NET CHG 0.81 -0.70 3.00 0.00 0.61 0.00 0.00 0.03 7.50 0.02 0.08
SOFTS
SYMBOL SYMBOL COFFEE SUGAR NO5 COCOA SUGAR COFFEE WHEAT COTTON NO2 MAIZE PALM OIL RUBBER CORN SOY BEANS COCOA CURRENCY CURRENCY USD USD USD USD USD USC EUR MYR JPY USD USX USD LAST LAST 148.00 510.00 3400.00 25.18 163.90 526.50 87.49 137.00 2583.00 264.00 23.17 1055.00 2147.00 NET CHG CHG NET 0.75 -3.80 35.00 0.36 2.90 -7.50 -0.55 0.75 58.00 -3.00 0.00 0.00 1.00
52.99 100.89 12.66 103.33 150.81
55.78 104.55 13.33 105.44 153.89
GOLD 100 OZ GOLD SILVER SILVER PLATINUM HG COPPER PALLADIUM PLATINUM HG COPPER ALUMINIUM ALUMINIUM
NATURAL GAS OIL GAS USD
188.00 14565.00 1.00 -45.00
100.22
105.49
23
MONEY MARKETS
Euo nea new low on feas ove Cypus, yen me

The euro sagged yesterday to approach a four-month low on concerns about the spillover from Cyprus bailout terms, while the Aussie dollar was tripped up after data showed a slower rebound in Chinese factory activity in March than expected. The yen rmed across the board as a few large purchases of the Japanese currency made a splash on a day with low liquidity and few participants, with most markets closed for Easter holidays. The euro started the new quarter with a whimper, slipping 0.2 percent to $1.2791, just above a four-month low of $1.2750 hit last Wednesday. The common currency has slid steadily since February, when it hit a 14-month high of $1.3711. At the weekend, the Cypriot central bank conrmed that major depositors in Cypruss biggest bank would lose around 60 percent of savings over 100,000 euros, well above the initially touted cut of 30 to 40 percent.
AGRICULTURAL AND AUTOMOBILES

Sasini
Kenya 11.95 - 1.24%
Sameer
Kenya
Kakuzi
5.05 - 2.88% Kenya
80.00 5.26%
Marshalls
Kenya
12.40 0.00%
Limuru Tea
Kenya
460.00 0.00%
April 12
Price to earnings ratio (p/e) Earnings per share Dividend Yield
April 13
6.95 1.72 8.37%
April 12
April 13
-2.88 0.68 4.95%
April 12
April 13
2.85 28.06 4.69%
April 12
April 13
- 1.05 - 11.80 0.00%
April 12
April 13
5.42 84.86 1.63 %
Kapchorua
Kenya
120.00 0.00%
Car & General

Kenya
23.50 3.30%
EAAGARDS
Kenya
25.50 0.00%
Williamson Tea
Kenya
228.00 0.00%
Rea Vipingo
Kenya
20.75 -4.60%
Year to date
Year to date
Year to date
Year to date
April 12
April 13
6.02 19.93 6.25%
April 12
April 13
3.02 7.78 2.34 %
April 12
April 13
18.75 1.36 4.90%
April 12
April 13
April 12
April 13
3.27 6.34 5.30%
Borrowing costs
It wouldnt be unusual for the euro to drop to $1.25. Cyprus also reminded people of all the problems that dissuaded people from buying it before: low growth, unemployment and so on, said Daisuke Karakama, market economist at Mizuho Corporate Bank. The euro has major support around $1.2680, a 61.8 per cent retracement of its July-February rally. But a break there could open the way for a test of last years low near $1.20. Borrowing costs in Slovenia, seen by economists as one of the next potential candidates for a euro zone bailout, jumped over 100 basis points in the wake of the Cyprus bailout, while Italian borrowing costs reached their highest since November at a 5-year bond auction last week. Appetite for Italian debt has been hurt by the deadlock in the countrys politics since inconclusive elections a month ago, reinforcing the common currencys weakness. At the weekend, President Giorgio Napolitano summoned 10 wise men to propose a series of urgent measures that could be backed by all parties, but the move oered little hope of overcoming the deep political divisions. Antipodean currencies were also o on Monday after underwhelming Chinese manufacturing data. The ocial Purchasing Managers Index reached 50.9 in March, stopping short of market expectations of a jump to 52 from Februarys 50.1. The Aussie fell 0.3 per cent to $1.0393.
- REUTERS
Price to earnings ratio (p/e) 93.74 Earnings per share 2.43 25.22% Dividend Yield
Tracking the markets: Benchmark Index (Latest Data) Africa

TUN Main Index
Tunisia 4,744.16 0.00%
JSE All Share

Johannesburg
39, 860.84 - 0.05%
CASE30 Index
Egypt
5,183.20 + 0.38%
CASA All Shares

Morocco
9, 037 0.00%
LUSE All Shares

Zambia
4,165.87 - 1.17%
April 12
April 13
April 12
April 13
April 12
April 13
April 12
April 13
April 12
April 13
World
Nikkei
Tokyo 12, 397.91 + 0.50%
Xetra
Frankfurt
7, 795.31 + 0.08%
Sensex
Mumbai
18, 835.77 + 0.70%
DJ Industrial
New York
14,578.54 +0.36%
FTSE
London
2,431.37 + 0.37%
April 12
April 13
April 12
April 13
April 12
April 13
April 12
April 13
April 12
April 13
24
MARKET DATA MARKET DATA MARKET DATA

Nairobi Stocks Stocks Nairobi
NSE 20 Share Index
Nairobi 4860.83 0.63%
MARKET DATA DATA MARKET

African Indices Indices African
Name NSE 20 - SHR INDEX LUSE ALL SHARE INDEX JSE ALL SHARE INDEX ALSIUG ZSE INDUSTRIAL CFG INDEX MALAWI ALL SHR DSE ALL SHR IDX NSE ALL SHARE EGX 30 IDX/d Country Kenya Zambia South Africa Uganda Zimbambwe Morocco Malawi Tanzania Nigeria Egypt Tunisia Last 4,860.83 4,165.87 39,860.84 1,531.00 183.88 18,574.99 6,344.58 1,521.48 33,536.25 5,183.20 4,744.16 Net.Chng 30.39 -49.65 -21.6 35 1.02 125.8 -27.67 1.24 67.36 19.54 1.27 Pct.Chng 0.63% -1.17% -0.05% 2.34% 0.56% 0.68% -0.43% 0.08% 0.20% 0.38% 0.03% Open 4,860.83 4,256.79 39,924.77 1,496.00 182.86 18,433.11 6,372.25 1,520.24 33,458.14 5,163.47 4,742.89 High 4,860.83 4,263.56 39,943.75 1,496.00 182.86 18,574.99 6,372.25 1,520.24 33,603.29 5,205.08 4,742.89 Low 4,860.83 4,188.69 39,778.86 1,496.00 182.86 18,316.71 6,372.25 1,520.24 33,137.46 5,161.92 4,742.89 Close 4,830.44 4,235.80 39,882.44 1,496.00 182.86 18,449.19 6,372.25 1,520.24 33,468.89 5,163.66 4,742.89
Mar 12
Mar 13
TUN MAIN INDEX
PineBridge-27 Index
Nairobi
650.75 1.36%
Weekly Share Report Weekly Share Report Daily Share Report

52 WK HIGH AGRICULTURAL EAAGADS KAKUZI KAPCHORUA TEA LIMURU TEA REA VIPINGO SASINI WILLIAMSON TEA CAR & GEN CMC MARSHALLS SAMEER BANKING BARCLAYS CFC STANBIC DTBK 18.50 66.00 154.00 35.00 24.75 42.00 24.00 57.00 315.00 16.70 4.50 19.00 21.00 375.00 75.50 31.25 61.00 22.50 74.00 225.00 49.00 16.50 65.00 14.95 16.95 20.50 18.00 10.00 9.50 7.00 260.00 16.45 61.50 20.25 500.00 4.50 37.75 113.00 540.00 135.00 325.00 2.50 7.35 16.35 10.10 6.50 10.70 34.50 86.00 17.00 13.00 20.25 16.00 25.00 160.00 10.15 3.00 10.25 8.50 145.00 40.00 20.00 36.00 9.00 48.75 143.00 24.00 9.55 32.00 7.05 9.80 14.00 12.65 10.00 3.80 6.30 3.05 150.00 7.15 55.36% 53.44% 55.71% 66.45% 113.70% 30.27% 50.00% 60.22% 102.74% 95.56% 146.29% 9.88% 122.92% 88.13% 33.88% -10.26% 0.00% -47.23% -78.31% 153.57% 72.29% 24.00% -6.36% 185.71% -56.65% 73.60% 134.15% 51.18% -5.36% 72.78% 0.50% 8.26% -11.19% 57.00 89.00 148.00 500.00 23.50 13.60 315.00 29.00 14.20 5.60 22.00 67.50 111.00 400.00 14.50 10.00 180.00 21.00 12.00 3.40 -23.88% 15.11% -4.00% 37.31% 43.60% -9.81% -19.15% 3.30% 0.00% -0.80% 14.77% 52 WK LOW YTD %
PRICE THIS THUR 25.50 80.00 120.00 460.00 20.75 11.95 228.00 23.50 13.50 12.40 5.05 17.00 60.00 145.00 33.25 24.25 41.50 22.25 53.50 301.00 16.40 3.50 20.25 10.95 9.00 355.00 71.50 31.00 51.50 22.00 68.50 217.00 48.00 15.95 53.00 14.60 10.00 19.00 13.10
PRICE PREV FRI 24.25 76.00 121.00 470.00 21.25 11.85 226.00 21.25 13.50 12.35 5.40 16.60 54.50 145.00 30.00 22.25 38.50 22.50 49.25 291.00 15.00 3.50 20.25 11.00 8.50 321.00 72.00 24.75 50.50 21.50 67.50 219.00 47.75 15.45 52.00 13.45 10.50 18.55 14.55 10.00
WEEKLY PRICE CHANGE 5.15% 5.26% -0.83% -2.13% -2.35% 0.84% 0.88% 10.59% 0.00% 0.40% -6.48% 2.41% 10.09% 0.00% 10.83% 8.99% 7.79% -1.11% 8.63% 3.44% 9.33% 0.00% 0.00% -0.45% 5.88% 10.59% -0.69% 25.25% 1.98% 2.33% 1.48% -0.91% 0.52% 3.24% 1.92% 8.55% -4.76% 2.43% -9.97% -0.00% 2.96% 2.55% -0.91% 15.18% 7.96% 6.31% 14.70% 0.00% -1.23% -2.99% 0.00% 1.00% 1.89% 3.17% 0.32% 7.50% 0.00% 0.00% -5.41% 4.73% 3.45%
WEEKLY TRADED SHARES 5,200 5,000 2,200 22,700 24,300 47,400 3,300 3,200 600 413,600 5,543,700 251,700 72,700 5,117,500 1,625,700 13,541,000 424,400 440,000 80,300 4,494,200 12,400 2,882,100 8,200 214,700 176,100 27,700 19,200 157,900 1,606,800 263,700 21,500 326,500 24,300 4,612,000 9,425,700 3,767,700 50,600 1,255,100 4,940,600 83,100 1,013,400 766,400 160,900 1,765,900 84,600 141,800 2,000 193,600 9,100 1,644,900 195,300 6,460,400 22,000 3,443,500
SHARES ISSUED MN 32,157,000 19,599,999 3,912,000 1,200,000 60,000,000 228,055,500 8,756,320 33,419,424 582,709,440 14,393,106 278,342,393 5,431,536,000 395,321,638 220,100,096 3,702,777,020 235,750,000 2,970,249,681 280,000,000 542,984,148 309,159,514 4,190,845,080 35,403,790 360,000 1,496,469,034 58,500,000 157,118,572 284,789,128 81,481,478 182,174,108 265,426,614 495,275,000 362,959,275 23,727,000 253,125,000 90,000,000 2,198,361,456 1,471,761,200 1,951,467,045 175,028,706 1,623,878,005 1,891,451,850 515,270,364 2,179,615,440 59,895,000 700,000,000 96,000,000 665,441,775 5,728,314 40,000,000 273,950,284 3,840,066 19,525,446 100,000,000 33,980,265 790,774,356 210,000,000 12,868,124 1,530,000,000 75,708,873 208,084,296 MKT CAP. KSHS MN. 820,003,500 1,567,999,920 469,440,000 552,000,000 1,245,000,000 2,725,263,225 1,996,440,960 785,356,464 7,866,577,440 178,474,514 1,405,629,085 92,336,112,000 23,719,298,280 31,914,513,920 123,117,335,915 5,716,937,500 123,265,361,762 6,230,000,000 29,049,651,918 93,057,013,714 68,729,859,312 123,913,265 7,290,000 16,386,335,922 526,500,000 55,777,093,060 20,362,422,652 2,525,925,818 9,381,966,562 5,839,385,508 33,926,337,500 78,762,162,675 1,138,896,000 4,037,343,750 4,770,000,000 32,096,077,258 14,717,612,000 37,077,873,855 2,292,876,049 19,009,091,093 2,808,223,484 562,340,783,520 934,362,000 41,300,000,000 298,117,915,200 22,913,256 1,300,000,000 387,846,666 10,543,740,840 13,000,000,000 10,567,862,415 1,700,164,865 630,000,000 57,906,558 21,420,000,000 1,498 1,248,505,776
EPS LATEST 12MNTH 1.36 28.06 19.93 84.86 6.34 1.72 93.74 7.78 0.18 -11.80 0.68 1.61 9.90 17.44 3.26 3.22 4.11 1.49 6.03 26.51 1.84 -6.47 -18.34 3.58 -0.38 15.90 2.21 2.96 4.51 1.03 2.51 12.17 5.44 1.74 -9.09 1.28 2.21 2.36 3.05 1.40 1.40 0.64 33.00 3.19 1.72 7.27 1.79 8.45 0.38 1.23 -2.02 10.11 32.71 11.46 13.46 -0.59 0.04 1.32 2.81 0.69 0.32 P/E TRAILING 18.75 2.85 6.02 5.42 3.27 6.95 2.43 3.02 75.00 -1.05 7.43 10.56 6.06 8.31 10.20 7.53 10.10 14.93 8.87 11.35 8.91 -0.54 -1.10 3.06 -23.68 22.33 32.35 10.47 11.42 21.36 27.29 17.83 8.82 9.17 -5.83 11.41 4.52 8.05 4.30 0.00 6.21 15.70 0.17 80.88 9.07 8.12 11.12 53.02 10.53 26.42 -5.50 9.99 16.51 11.34 23.11 -3.64 75.00 3.41 4.98 12.83 18.75
EPS INTERIM 6 MNTH 4.22 23.58 50.50 -6.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.51 0.00 8.81 0.41 0.00 1.02 1.39 9.58 11.65 5.55 0.54 1.94 0.69 254929.99 2183421.17 11134007.20 486393.08 4214598.61 -510986203.37 4900.62 6012017.30 1.36 18509.00 0.00 3655594.44 0.00 148214617.42 92037.23 31169811.32 0.00 35400.44 245586.34 PBV TRAILING 4216801.83 763150.68 529527.62 9863659.92 1328211.10 417384.56 516471.03 504758.30 1442091.24 4532340.76 637653.09 3445041.04 974507.42 2925038.05 4233296.54 1305973.05 3207103.38 652309.03 3256991.59 4349568.94 3423154.13 322386.88 0.00 820424.37 9064140.19 8605457.41 1708823.03 2308333.25 3794437.77 7533663.10 3905884.59 1262151.39 1906977.35 734524.52 525094.25 1027918.52 952815.80 234287.82
DPS LATEST 12MNTH 1.25 3.75 7.50 7.50 1.10 1.00 57.50 0.55 0.00 0.00 0.25 1.00 0.00 1.90 1.25 1.40 1.90 0.20 1.00 12.50 0.50 0.00 0.00 0.25 0.00 10.00 0.60 0.00 1.30 0.30 0.50 10.50 1.25 1.00 0.00 0.60 1.00 0.50 0.00 0.50 0.10 0.10 4.50 0.35 0.40 3.00 0.00 0.00 0.10 0.25 0.00 5.05 32.50 5.00 8.75 0.00 0.00 0.50 0.75 0.30 0.22
TOTAL DIVIDEND YIELD 4.90% 4.69% 6.25% 1.63% 5.30% 8.37% 25.22% 2.34% 0.00% 0.00% 4.95% 5.88% 0.00% 1.31% 3.76% 5.77% 4.58% 0.90% 1.87% 4.15% 3.05% 0.00% 0.00% 2.28% 0.00% 2.82% 0.84% 0.00% 2.52% 1.36% 0.73% 4.84% 2.60% 6.27% 0.00% 4.11% 10.00% 2.63% 0.00% #DIV/0! 1.15% 1.00% 82.57% 0.14% 2.56% 5.08% 0.00% 0.00% 2.50% 0.77% 0.00% 5.00% 6.02% 3.85% 2.81% 0.00% 0.00% 11.11% 5.36% 3.39% 3.67%
AUTOMOBILES & ACCESSORIES
Mar 12
Mar 13
All Share Index (NASI)

Nairobi
117.91 0.58%
EQUITY HF KCB NBK NIC BANK STAN. CHART. CO-OP BANK COMMERCIAL EXPRESS (K) HB KQ LONGHORN NATION MEDIA SCANGROUP STANDARD GRP TPS EA UCHUMI CONSTRUCTION & ALLIED ARM CEMENT LTD BAMBURI CROWN BERGER EA CABLES
Mar 12
Mar 13
Active Counters
Last Counter Thu Previous Fri % Change Shares Traded
EAPC ENERGY & PETROLEUM KENGEN KENOLKOBIL KPLC TOTAL UMEME INSURANCE BRITISH AMERICAN CIC INSURANCE
Safaricom KCB KenolKobil Mumias Barclays
6.00 41.50 10.00 4.50 17.00
5.80 38.50
3.45% 34,823,200 7.79% 13,541,000 9,425,700 6,460,400 5,543,700
10.50 -4.76% 4.50 0.00% 16.60 2.41%
8.70 10.05 5.45 258.00 15.60 59.00 19.90 448.00 4.00 32.50 11.10 101.00 540.00 130.00 311.00 2.15 3.00 4.50 14.00 8.85 6.00
8.45 9.80 5.50 224.00 14.45 55.50 17.35 448.00 4.05 33.50 11.10 100.00 530.00 126.00 310.00 2.00 3.00 4.50 14.80 8.45 5.80
Gainers
Last Thu Previous Fri Net% Counter Change Chng
LIBERTY KENYA HOLDINGS 11.00 JUBILEE KENYA RE PAN AFRICA INVESTMENT CENTUM INVEST. CITY TRUST OLYMPIA TRANSCENTURY A. BAUMANN MANUFACTURING & ALLIED
18.00 184.34% 11.05 220.00 3.05 20.00 90.00 280.00 88.00 180.00 1.35 4.00 8.60 3.75 3.05 47.41% 60.00% 25.00% 19.27% 0.00% 1.00% 119.51% 42.08% 80.81% 22.86% 0.00% -15.09% 55.56% 71.84% 103.39%
Standard Grp Jubilee Centum Invest. Equity Nation Media
31.00 258.00 19.90 33.25 355.00
24.75 224.00 17.35 30.00 321.00
6.25 34.00 2.55 3.25 34.00
25.25% 15.18% 14.70% 10.83% 10.59%
- 1034936492.60
Losers
Last Counter Thu Previous Fri Net Change % Chng
BOC GASES BAT KENYA CARBACID EABL EVEREADY EA K. ORCHARDS MUMIAS UNGA ACCESS SAFARICOM
Total Sameer Unga KenolKobil Transcentury
13.10 5.05 14.00 10.00 32.50
14.55 5.40 14.80 10.50 33.50
-1.45 -0.35 -0.80 -0.50 -1.00
-9.97% -6.48% -5.41% -4.76% -2.99%
TELECOMMUNICATION & TECHNOLOGY 34,823,200 40,000,000,000
MARKET UPDATES
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25
MARKET DATA
Share Price Performance Scorecard
SCORECARD AS AT 28TH MARCH 2013 NAME PREVIOUS A BAUMANN 11.10 ACCESS KENYA 9.20 ATHI RIVER MINING 67.50 BAMBURI 218.00 BARCLAYS KEN 16.90 BAT KENYA 539.00 BOC KENYA 101.00 BRITISH AMERICAN 8.45 CAR & GENERAL 22.75 CARBACID INV 134.00 CENTUM INV 19.75 LIBERTY KENYA HOLDINGS 10.05 CFC STANBIC BANK 58.50 CIC INSURANCE 5.55 CITY TRUST 448.00 CMC HOLDINGS 13.50 CO-OP BANK 16.30 CROWN BERGER 47.75 DIAMOND KEN 146.00 EA CABLES 15.50 EA PORT CEM 53.00 EAAGADS 25.50 EA AFR BREW 311.00 EQUITY BANK 33.25 EVEREADY EA 2.10 EXPRESS KEN 3.50 G WILLIAMSON 228.00 HB 20.25 HOUSING FIN 24.25 JUBILEE HLDS 249.00 KAKUZI 76.00 KAPCHORUA 120.00 KEN ORCHARDS 3.00 KENGEN 14.45 KENYA AIRWAYS 10.85 KENYA COM BK 40.75 KENOLKOBIL 10.05 KENYA POWER 19.00 KENYA RE 15.60 LIMURU TEA 460.00 LONGHORN 9.05 MARSHALL 12.40 MUMIAS SUGAR 4.50 NATION MEDIA 349.00 NATL BANK KEN 20.50 NIC BANK 52.00 OLYMPIA CAPITAL 4.00 PAN AFR INS 56.50 REA VIPINGO 21.75 SAFARICOM 5.95 SAMEER AFRICA 5.20 SASINI 12.10 SCANGROUP 72.00 STANDARD GRP 28.50 STD CHART KEN 301.00 TOTAL KENYA 13.25 TPS (EA) 54.00 TRANSCENTURY 32.75 UCHUMI SUPER 21.75 UNGA GROUP 15.00 CLOSE 11.10 8.85 68.50 217.00 17.00 540.00 101.00 8.70 23.50 130.00 19.90 9.65 60.00 5.45 448.00 13.50 16.40 48.00 145.00 15.95 53.00 25.50 311.00 33.25 2.15 3.50 228.00 20.25 24.25 258.00 80.00 120.00 3.00 14.60 10.95 41.50 10.00 19.00 15.60 460.00 9.00 12.40 4.50 355.00 22.25 53.50 4.00 59.00 20.75 6.00 5.05 11.95 71.50 31.00 301.00 13.10 51.50 32.50 22.00 14.00 % 1D 0.00 -3.80 1.48 -0.46 0.59 0.19 0.00 2.96 3.30 -2.99 0.76 4.15 2.56 -1.80 0.00 0.00 0.61 0.52 -0.68 2.90 0.00 0.00 0.00 0.00 2.38 0.00 0.00 0.00 0.00 3.61 5.26 0.00 0.00 1.04 0.92 1.84 -0.50 0.00 0.00 0.00 -0.55 0.00 0.00 1.72 8.54 2.88 0.00 4.42 -4.60 0.84 -2.88 -1.24 -0.69 8.77 0.00 -1.13 -4.63 -0.76 1.15 -6.67 % 5D 0.00 14.94 0.74 0.00 2.41 1.89 1.00 2.35 10.59 3.17 16.03 3.08 9.09 1.87 0.00 0.00 8.97 2.13 0.00 3.24 0.00 6.25 0.65 10.83 10.26 0.00 0.88 0.00 6.59 17.81 5.26 -0.83 0.00 8.15 -1.35 7.79 -6.54 2.15 9.86 -2.13 1.87 0.00 -1.10 17.16 0.00 8.63 -1.23 5.36 -2.35 2.56 -7.34 0.00 0.70 34.78 4.51 -7.75 1.98 -2.99 2.33 -5.08 % 1M 0.00 36.15 10.48 6.37 2.41 1.89 -4.72 20.37 -2.08 8.33 38.68 42.55 32.60 31.33 -0.44 0.00 19.27 12.94 3.57 6.69 7.07 10.87 10.28 17.70 16.22 2.94 10.14 0.00 23.72 35.08 3.90 4.35 0.00 18.70 2.82 8.50 -25.93 8.88 24.80 6.98 31.33 -0.80 7.14 32.46 22.59 18.23 9.59 18.00 -2.35 4.35 17.44 8.64 0.00 29.17 11.48 -8.39 19.08 20.37 13.99 -3.78 % 3M 0.00 108.24 53.93 17.30 8.28 9.53 1.51 42.86 -2.08 13.04 60.48 50.00 44.58 55.71 14.87 0.00 32.79 12.94 26.09 33.47 35.90 2.00 17.80 38.54 7.50 0.00 19.37 0.00 56.45 49.13 15.94 1.69 0.00 64.04 -2.67 39.50 -25.93 8.88 43.78 6.98 55.71 -12.68 -7.22 59.91 30.12 39.87 17.65 46.58 9.21 18.81 21.69 2.14 5.93 42.53 27.54 -6.09 25.61 42.86 14.88 7.28
Equities & Bonds Weekly Treasury and Infrastructure Bonds

BONDS WEEKLY STATISTICS
% 6M 0.00 84.38 -68.86 26.90 16.44 25.58 -0.98 0.00 -4.08 5.69 65.15 43.57 50.00 39.74 29.86 0.00 37.82 38.13 30.63 50.47 1.92 -50.00 33.48 43.01 22.86 -13.58 3.64 0.00 71.99 56.36 11.11 -4.00 0.00 65.91 -8.75 50.91 -33.77 8.26 32.77 2.22 39.74 -4.62 -30.23 66.67 21.25 57.35 8.11 59.46 22.06 46.34 34.67 9.13 23.28 21.57 45.41 -12.96 30.38 0.00 23.25 1.82
% 1Y 0.00 115.85 -57.45 41.83 37.65 90.81 -15.83 0.00 -9.62 30.00 53.08 0.00 50.00 0.00 79.92 0.00 30.68 84.62 54.26 46.33 -5.36 -25.00 55.50 70.51 48.28 -14.63 -0.87 0.00 66.67 40.22 5.26 -0.83 0.00 101.38 -21.79 84.44 -16.32 32.87 113.70 15.00 0.00 3.33 -4.26 119.14 17.72 101.89 19.40 156.52 30.09 87.50 32.89 6.22 45.92 34.78 75.00 -14.38 14.44 0.00 82.57 54.70
ISSUE DATE ISSUE NO. ONE YEAR BONDS FXD2/2012/1YR FXD3/2012/1YR TWO YEAR BONDS FXD1/2011/2YR FXD 2/2011/2YR FXD 3/2011/2YR FXD 4/2011/2YR FXD 1/2012/2YR FXD 2/2012/2YR FXD 3/2012/2YR FXD 4/2012/2YR FXD 1/2013/2YR FXD 2/2013/2YR FIVE YEAR BONDS FXD 2/2008/5YR FXD 3/2008/5YR FXD 4/2008/5YR FXD 1/2009/5YR FXD 1/2010/5YR FXD 2/2010/5YR FXD 1/2011/5YR FXD 1/2012/5YR SIX YEAR BONDS FXD1/2007/6YR SEVEN YEAR BONDS FXD2/2006/7YR FXD1/2007/7YR EIGHT YEAR BONDS FXD1/2006/8YR FXD1/2007/8YR NINE YEAR BONDS FXD1/2006/9YR TEN YEAR BONDS FXD1/2003/10YR FXD2/2003/10YR FXD1/2006/10YR FXD2/2006/10YR FXD1/2007/10YR FXD1/2008/10YR FXD2/2008/10YR FXD3/2008/10YR FXD1/2009/10YR FXD1/2010/10YR FXD2/2010/10YR FXD1/2012/10YR 23-JUN-03 25-AUG-03 27-MAR-06 29-MAY-06 29-OCT-07 29-OCT-07 28-JUL-07 29-SEP-08 27-SEP-09 26-APR-10 1-NOV-10 30-JUN-12 25-SEP-06 28-AUG-06 28-MAY-07 26-MAR-07 25-JUN-07 26-NOV-07 31-MAR-08 26-OCT-09 29-MAR-10 27-DEC-10 24-SEP-12 25-FEB-13 30-JUN-08 30-MAY-11 26-NOV-12 28-JUN-10 28-FEB-11 3-OCT-11 23-FEB-09 7-DEC-09 1-MAR-10 31-AUG-10 24-APR-06 27-FEB-06 26-FEB-07 25-DEC-06 30-JUL-07 30-APR-07 28-APR-08 25-AUG-08 27-OCT-08 21-SEP-09 24-MAY-10 30-NOV-10 31-JAN-11 28-MAY-12 28-FEB-11 25-APR-11 26-SEP-11 28-NOV-11 30-APR-12 27-AUG-12 29-OCT-12 24-DEC-12 25-FEB-13 25-MAR-13 27-FEB-12 26-MAR-12
MATURITY DATE
ISSUED VALUE IN MILLIONS COUPON (%) (%)
THIS WEEK HIGHEST YIELD LOWEST YIELD TOTAL VALUE (%) (KSHS)
25-FEB-13 25-MAR-13 25-FEB-13 22-APR-13 23-SEP-13 25-NOV-13 28-APR-14 25-AUG-14 27-OCT-14 22-DEC-14 23-FEB-15 23-MAR-15 22-APR-13 19-AUG-13 21-OCT-13 15-SEP-14 18-MAY-15 23-NOV-15 25-JAN-16 22-MAY-17 22-APR-13 16-DEC-13 21-JUL-14 17-FEB-14 16-FEB-15 13-APR-15 10-JUN-13 12-AUG-13 14-MAR-16 16-MAY-16 16-OCT-17 16-OCT-17 16-JUL-18 28-SEP-18 15-APR-19 13-APR-20 19-OCT-20 13-JUN-22 11-SEP-17 13-AUG-18 13-MAY-19 7-MAR-22 6-JUN-22 7-NOV-22 13-MAR-23 7-OCT-24 10-MAR-25 8-DEC-25 6-SEP-27 7-FEB-28 5-JUN-28 5-MAY-31 1-NOV-32 28-MAY-35 21-JAN-41 18-SEP-23 8-FEB-21 22-NOV-21 19-FEB-18 19-SEP-19
10,516.25 15,038.39 14,269.92 1,439.02 10,000.00 9,980.05 6,468.64 16,314.70 13,787.50 20,777.16 20,468.11 19,967.33 3,828.33 14,809.15 14,809.15 3,244.28 11,998.76 11,970.90 10,810.80 4,979.59 6,001.26 2,261.63 7,999.98 3,198.71 2,630.10 3,045.05 3,096.54 6,352.87 3,344.97 5,088.33 9,000.00 2,901.99 13,504.70 3,910.96 4,688.23 12,182.89 14,462.47 5,043.74 3,909.72 3,823.67 4,999.04 3,568.80 7,500.00 16,982.02 6,998.56 8,704.44 10,419.88 6,316.19 19,526.31 4,994.32 8,989.64 6,010.63 3,174.90 7,500.00 8,125.69 11,625.75 18,572.82 18,500.00 16,263.84 30,590.12
18.030 16.432 5.2800 7.4390 10.5000 22.8440 13.8260 11.1140 12.4960 11.1000 12.8440 12.9400 9.50 9.50 9.50 9.50 6.95 6.67 7.636 11.855 11.50 12.00 9.75 13.25 12.75 13.50 13.25 8.50 14.00 14.00 10.75 10.75 10.75 10.75 10.75 8.79 9.307 12.300 13.75 14.00 13.00 14.50 13.50 12.50 12.50 12.50 10.25 9.00 11.00 11.25 13.75 10.00 12.00 11.25 12.00 12.00 12.50 12.00 9.75 6.00 13.0000 12.4000 13.0000 12.0000 700,000 500,000,000 13.0000 13.0000 100,000 13.5500 13.2000 280,000,000 13.7500 13.7500 13.7500 13.7500 300,000 600,000 13.8900 13.2000 4,550,000,000 13.5000 13.5000 700,000 12.9300 12.9300 400,000 13.2500 13.2500 13.2500 13.2500 800,000 100,000 10.0900 12.7500 13.0000 10.0900 12.7500 13.0000 500,000 100,000 500,000 12.9000 12.7500 1,102,000,000
Weekly Corporate Bonds

BONDS WEEKLY STATISTICS ISSUE DATE MATURITY DATE ISSUED VALUE IN MILLIONS COUPON (%) 1480.60 196500.00 1.00 1,416.79 1,083.21 500.00 1,000 1.500 1,300 0.700 1,378,500,000 621,500,000 97,906,580 2,402,093,420 2,500 25,000,000,000 463,400,000 7,049,600,000 5,000 2,969.10 1,167 5,864 13.25 13.60 AVERAGE TRADED YIELD (%) (KSHS) TOTAL VALUE ISSUE NO. CONSOLIDATED BANK OF KENYA LTD MEDIUM TERM NOTE PROGRAMME CON.BD-FXD(SN)/2012/7YR 30-JUN-12 CON.BD-FXD(SBN)/2012/7YR 30-JUN-12 CON.BD-FR(SN)/2012/7YR 30-JUN-12 SHELTER AFRIQUE MEDIUM TERM UNSECURED NOTES FR 1/2011/3YR 11-JUL-11 FXD 1/2011/3YR 11-JUL-11 FXD 2/2012/3YR 2ND TRANCHE 17-DEC-12 PTA BANK LTD FLOATING RATE BOND FR(MTN)/2007/7YR 15-OCT-07 BARCLAYS BANK MEDIUM TERM FLOATING RATE NOTES FR (MTN)/2007/7YR 19-NOV-07 FXD (MTN)/2008/7YR 14-JUL-08 FXD (MTN)/2008/7YR 14-JUL-08 MRM FR (MRM) 2008/8YR 27-OCT-08 FXD (MRM) 2008/8YR 27-OCT-08 CFC STANBIC BANK SENIOR & SUBORDINATED BOND ISSUE FR (CFC STANBIC) 2009/7YR FXD (CFC STANBIC) 2009/7YR 7-JUL-09 7-JUL-09 24-JUL-19 24-JUL-19 24-JUL-19 7-JUL-14 7-JUL-14 14/12/2015 31-OCT-14 19-NOV-14 14-JUL-15 14-JUL-15 3-JAN-17 3-JAN-17 7-JUL-16 7-JUL-16 22-DEC-14 31-OCT-19 3-NOV-14 3-NOV-14 3-NOV-14 14-OCT-19 2-OCT-17 2-OCT-17
ELEVEN YEAR BONDS FXD1/2006/11YR TWELVE YEAR BONDS FXD1/2006/12YR FXD1/2007/12YR FIFTEEN YEAR BONDS FXD1/2007/15YR FXD2/2007/15YR FXD3/2007/15YR FXD1/2008/15YR FXD1/2009/15YR FXD1/2010/15YR FXD2/2010/15YR FXD1/2012/15YR FXD1/2013/15YR TWENTY YEAR BONDS FXD1/2008/20YR FXD1/2011/20YR FXD1/2012/20YR FXD1/2010/25YR THIRTY YEAR BOND SDB 1/2011/30YR INFRASTRUCTURE BONDS
12.50% 12.75%
8.70% 8.70%
13.00%
12.50% 7.25% 12.50%
12.4000
32,200,000
FXD2 (CFC STANBIC) 2010/4YR 27-DEC-10 KENGEN PUBLIC INFRASTRUCTURE BOND OFFER 2019 FXIB 1/2009/10YR 2-NOV-09 SAFARICOM LTD DOMESTIC MEDIUM TERM NOTE FR (SAFARICOM LTD) 2009/5YR FXD (SAFARICOM LTD) 2009/5YR FXD2 (SAFARICOM LTD) 2009/5YR HOUSING FINANCE MEDIUM TERM NOTE FXD (HFCK) 02/2012/7YR 2ND TRANCHE FR (HFCK) 2010/7YR FXD (HFCK) 2010/7YR 2-NOV-09 2-NOV-09 2-NOV-09 22-OCT-12 26-OCT-10 26-OCT-10
TWENTY FIVE YEAR BOND
12.25% 7.75% 13 9
IFB 1/2011/12YR IFB 1/2009/12YR IFB 2/2009/12YR IFB 1/2010/8YR IFB 2/2010/9YR
26
MARKET DATA
Global Markets & Currencies
Currencies
Kenya Shilling
CURRENCY US DOLLAR STG POUND EURO SA RAND KES / USHS KES / TSHS KES / RWF KES / BIF AE DIRHAM CAN $ S FRANC JPY (100) SW KRONER NOR KRONER DAN KRONER IND RUPEE HONGKONG DOLLAR SINGAPORE DOLLAR SAUDI RIYAL CHINESE YUAN AUSTRALIAN $ BUY 85.55 129.46 109.43 9.22 30.21 18.78 7.35 18.09 23.29 84.16 89.77 90.87 13.10 14.62 14.69 1.57 11.02 68.82 22.81 13.77 89.22 SELL 85.72 129.76 109.68 9.28 30.39 18.94 7.46 18.71 23.34 84.35 89.98 91.06 13.13 14.66 14.73 1.58 11.04 68.99 22.86 13.80 89.44 MEAN 85.64 129.61 109.56 9.25 30.30 18.86 7.40 18.40 23.32 84.26 89.88 90.96 13.12 14.64 14.71 1.57 11.03 68.90 22.84 13.78 89.33
Europes Blue Chips

Based on one day performance in local currency
COMPANY ASTRAZENECA ANHEUSER-BUSCH INBEV SAP E.ON SE UNILEVER UNILEVER CVA NESTLE BARCLAYS TESCO BNP PARIBAS MOET HENNESSY LOUIS VUITT GLAXOSMITHKLINE HSBC HLDGS ROCHE HOLDING PART. CERT. SCHNEIDER ELECTRIC BG GRP NOVARTIS AG LAIR LIQUIDE BASF DEUTSCHE TELEKOM BRITISH AMERICAN TOBACCO H&M HENNES&MAURITZ B VODAFONE GROUP FINANCIERE RICHEMONT BANCO SANTANDER S.A. ALLIANZ SE STANDARD CHARTERED COUNTRY UNITED KINGDOM BELGIUM GERMANY GERMANY UNITED KINGDOM NETHERLANDS SWITZERLAND UNITED KINGDOM UNITED KINGDOM FRANCE FRANCE UNITED KINGDOM UNITED KINGDOM SWITZERLAND FRANCE UNITED KINGDOM SWITZERLAND FRANCE GERMANY GERMANY UNITED KINGDOM SWEDEN UNITED KINGDOM SWITZERLAND SPAIN GERMANY UNITED KINGDOM
DAILY LOCAL CURRENCY % PERFORMANCE IN LOCAL CURRENCY
FTSE 100
NAME ANGLO AMERICAN/D ASSOC.BR.FOODS/D ADMIRAL GROUP/D ABDN.ASSET.MAN/D AGGREKO/D AMEC/D ANTOFAGASTA/D ARM HOLDINGS/D ASHMORE/D AVIVA/D ASTRAZENECA/D BAE SYSTEMS/D BARCLAYS/D BRIT AM TOBACC/D BG GROUP/D BR LAND CO/D BHP BILLITON/D BUNZL/D BP/D BURBERRY GRP/D B SKY B/D BT GROUP/D CARNIVAL/D CENTRICA/D COMPASS GROUP/D CAPITA PLC/D CRODA INTL/D CRH/D CAPITAL SHOP C/D DIAGEO/D MAN GROUP/D EURASIAN/D EVRAZ PLC/D EXPERIAN/D FRESNILLO/D G4S/D GKN/D GLENCORE INT/D GLAXOSMITHKLIN/D HAMMERSON/D HARGREAVES LS/D HSBC HOLDINGS/D ICAP PLC/D IAG/D INTERCONT HOTE/D IMI PLC/D IMPERIAL TOBAC/D INTERTEK GROUP/D ITV/D JOHNSON MATTHE/D KAZAKHMYS/D KINGFISHER/D LAND SECS GROU/D LEGAL & GENERA/D LLOYDS BNK GRP/D MEGGITT PLC/D MARKS & SP./D MORRISON SUPMK/D NATIONAL GRID/D NEXT/D OLD MUTUAL/D PETROFAC/D POLYMETAL INT/D PRUDENTIAL/D PEARSON/D RECKIT BNCSR G/D ROYAL BANK SCO/D ROYAL DTCH SHL/D ROYAL DTCH SHL/D REED ELSEVIER/D REXAM PLC/D RIO TINTO/D ROLLS ROYCE PL/D RANDGOLD RES./D RSA INSRANCE G/D RESOLUTION/D SABMILLER/D SAINSBURY(J)/D SCHRODERS/D SCHRODERS NV/D SAGE GROUP/D SHIRE/D STANDARD LIFE/D SMITHS GROUP/D SMITH&NEPHEW/D SERCO GROUP/D SSE PLC/D STANDRD CHART /D SEVERN TRENT/D TATE & LYLE/D TULLOW OIL/D TESCO/D UNILEVER/D UNITED UTIL GR/D VEDANTA RES/D VODAFONE GROUP/D WEIR GROUP/D WOLSELEY/D WPP PLC/D WHITBREAD/D XSTRATA/D LAST 1,704.65 1,898.02 1,325.75 429.83 1,785.72 1,065.40 1,011.70 921.00 350.00 297.37 3,299.50 392.22 288.05 3,527.00 1,127.50 543.50 1,924.09 1,293.82 459.90 1,329.00 882.32 278.00 2,288.77 367.70 839.79 898.62 2,709.06 1,452.00 362.40 2,065.87 90.22 247.47 222.00 1,145.89 1,367.53 290.19 263.59 357.07 1,530.00 491.90 868.03 693.80 295.57 252.53 2,013.20 1,293.64 2,278.32 3,393.00 128.67 2,301.80 396.40 287.49 830.00 172.90 48.69 491.00 390.00 276.90 764.00 4,351.98 202.70 1,432.03 866.50 1,063.00 1,182.00 4,699.54 276.53 2,134.69 2,206.15 780.88 525.20 3,100.11 1,130.00 5,695.23 116.40 272.37 3,476.10 378.26 2,108.00 1,726.00 342.29 1,991.69 364.62 1,245.67 761.00 627.44 1,482.86 1,709.01 1,712.00 854.78 1,231.00 382.11 2,784.00 708.33 1,005.00 186.63 2,256.02 3,138.04 1,041.00 2,555.95 1,072.77 CLOSE 1,722.00 1,872.00 1,322.00 428.70 1,790.00 1,060.00 1,025.00 918.50 349.50 297.50 3,248.00 383.80 287.90 3,513.50 1,122.50 540.00 1,941.50 1,289.00 463.45 1,341.00 876.50 274.50 2,263.00 367.00 829.00 895.00 2,700.00 1,436.00 361.10 2,040.00 90.55 257.70 219.90 1,130.00 1,376.00 290.60 263.80 357.40 1,527.00 479.40 861.00 697.60 302.30 250.10 1,952.00 1,294.00 2,253.00 3,373.00 128.60 2,250.00 401.20 284.70 813.50 171.00 48.70 483.10 390.40 273.80 751.00 4,356.00 201.80 1,437.00 867.50 1,051.00 1,176.00 4,775.00 277.10 2,149.00 2,209.00 775.00 527.50 3,104.50 1,109.00 5,670.00 116.00 270.20 3,450.00 375.90 2,089.00 1,696.00 336.80 1,975.00 363.30 1,246.00 758.50 628.00 1,481.00 1,704.00 1,688.00 825.00 1,255.00 377.70 2,750.00 704.00 1,031.00 186.00 2,248.00 3,194.00 1,041.00 2,516.00 1,076.50 NET.CHNG PCT.CHNG -30.00 -1.74% 29.00 1.55% 10.00 0.76% 0.50 0.12% -8.00 -0.45% -4.00 -0.38% -41.00 -4.00% 2.50 0.27% 0.50 0.14% -1.30 -0.44% 51.50 1.59% 10.50 2.74% 3.25 1.13% 13.50 0.38% 6.50 0.58% 3.50 0.65% -26.50 -1.36% 6.00 0.47% -3.55 -0.77% -12.00 -0.89% 6.50 0.74% 3.50 1.28% 41.00 1.81% 0.70 0.19% 11.50 1.39% 4.00 0.45% 43.00 1.59% 16.00 1.11% 0.10 0.03% 35.00 1.72% -1.40 -1.55% -11.60 -4.50% 2.10 0.95% 10.00 0.88% -20.00 -1.45% 0.80 0.28% 0.70 0.27% -1.30 -0.36% 11.50 0.75% 12.50 2.61% 7.00 0.81% 4.90 0.70% -11.90 -3.94% 3.10 1.24% 55.00 2.82% 1.00 0.08% 46.00 2.04% 20.00 0.59% 0.80 0.62% 50.00 2.22% -8.80 -2.19% 3.10 1.09% 15.50 1.91% 1.70 0.99% -0.01 -0.02% 7.90 1.64% -0.40 -0.10% 2.40 0.88% 14.00 1.86% 10.00 0.23% 0.90 0.45% -4.00 -0.28% -1.00 -0.12% 14.00 1.33% 8.00 0.68% -57.00 -1.19% -1.60 -0.58% -20.00 -0.93% -24.00 -1.09% 6.00 0.77% 0.00 0.00% -19.50 -0.63% 21.00 1.89% 10.00 0.18% 0.40 0.34% 2.30 0.85% 14.00 0.41% 2.60 0.69% 19.00 0.91% 30.00 1.77% 5.90 1.75% 29.00 1.47% 2.00 0.55% 11.00 0.88% 1.50 0.20% -1.00 -0.16% 3.00 0.20% -0.50 -0.03% 24.00 1.42% 25.00 3.03% -24.00 -1.91% 3.85 1.02% 34.00 1.24% 4.50 0.64% -26.00 -2.52% 0.60 0.32% 15.00 0.67% 79.00 2.47% 8.00 0.77% 52.00 2.07% -8.50 -0.79%
INDUSTRY
LAST
CHG % CHG 1.59 1.56 1.38 1.26
1-WK 1.96 3.03 ... -1.77
YTD
52-WK 17.59 42.27 19.62 -23.44 35.61 26.23 21.40 18.55 13.30 8.51 3.04 8.15 25.02 38.30 15.20 -22.25 34.63 -4.03 5.17 -8.13 10.89 -2.14 7.43 31.63 -4.88 18.65 7.78 16.66 13.41 -13.88 -1.75 -17.63 20.12 8.77 12.13 0.52 16.87 -6.97 -1.75 -3.93
PHARMACEUTICALS BREWERS SOFTWARE MULTIUTILITIES FOOD PRODUCTS FOOD PRODUCTS FOOD PRODUCTS BANKS FOOD RETAILERS&WHOLESALERS BANKS CLOTHING&ACCESSORIES PHARMACEUTICALS BANKS PHARMACEUTICALS ELECTRICAL COMPONENTS&EQUIPMENT INTEGRATED OIL&GAS PHARMACEUTICALS COMMODITY CHEMICALS COMMODITY CHEMICALS MOBILE TELECOMMUNICATIONS TOBACCO APPAREL RETAILERS MOBILE TELECOMMUNICATIONS CLOTHING&ACCESSORIES BANKS FULL LINE INSURANCE BANKS BANKS BANKS FIXED LINE TELECOMMUNICATIONS INTEGRATED OIL&GAS BANKS TELECOMMUNICATIONS EQUIPMENT FULL LINE INSURANCE DIVERSIFIED INDUSTRIALS INTEGRATED OIL&GAS INDUSTRIAL MACHINERY GENERAL MINING INTEGRATED OIL&GAS INTEGRATED OIL&GAS
3,299.50 51.50 77.25 62.50 13.62 1.19 0.85 0.17
13.40 17.50 3.00 -3.30 17.70 10.80 15.20 11.00 13.60 -6.00 -3.90 15.20 8.60 20.10 4.00 11.50 17.40 -0.30 -4.00 -4.10 13.00 3.80 20.80 4.30 -13.20 1.10 8.30 -2.80 2.00 2.90 -5.00 -7.70 24.70 8.50 2.20 -4.40 14.20 -12.10 8.30 0.30
2,784.00 34.00 31.96 68.65 291.15 381.55 40.04 133.90 0.38 0.80 3.25 3.85 0.37 1.20
1.24 1.20 1.18 1.13 1.02 0.93 0.90 0.75 0.70 0.68 0.64 0.58 0.52 0.51 0.50 0.40 0.38 0.34 0.32 0.27 0.21 0.14 -0.03 -0.12 -0.14 -0.19 -0.23 -0.23 -0.25 -0.26 -0.53 -0.57 -0.60 -0.63 -0.77 -0.93
1.09 0.88 1.18 -0.29 2.61 -2.76 2.33 0.95 0.39 1.61 2.24 -2.55 1.50 -0.82 -3.50 -3.20 1.12 0.43 1.72 1.85 -6.31 -2.80 0.12 -7.32 -0.61 -8.26 -1.96 -6.11 -1.04 -0.11 -2.87 -3.52 0.90 -0.76 0.48 -1.37
US Dollar
BACKGROUND EURO JAPANESE YEN BRITISH POUND SWISS FRANC GOLD SILVER AUSTRALIAN DOLLAR CANADIAN DOLLAR SWEDISH KRONA NORWEGIAN KRONE DANISH KRONE RUSSIA ROUBLE TURKISH LIRA ICELAND KRONA POLISH ZLOTY CZECH KORUNA HUNGARIAN FORINT UKRAINE HRYVNIA ISRAEL SHEKEL ALBANIAN LEK BOSNIAN MARK BULGARIAN LEV SERBIAN DINAR CYPRUS POUND ESTONIAN KROON GEORGIAN LARI GIBRALTAR POUND CROATIAN KUNA LATVIAN LATS KAZAKHSTAN TENGE LITHUANIA LITAS MACEDONIA DENAR MALTESE LIRA ROMANIAN LEU ANGOLAN KWANZA BURUNDI FRANC BOTSWANA PULA CONGO FRANC CAPE VERDE ESCUDO DIJIBOUTI FRANC ALGERIAN DINAR EGYPT POUND ERITREA NAFKA ETHIOPIAN BIRR GHANAIAN CEDI GAMBIAN DALASI GUINEA FRANC KENYA SHILLING COMORO FRANC LIBERIAN DOLLAR LESOTHO LOTI LIBYAN DINAR MOROCCAN DIRHAM MALAGASY ARIARY MAURITANIAOUGUIYA MAURITIUS RUPEE MALAWI KWACHA MOZAMBIQUE METICAL NIGERIAN NAIRA RWANDA FRANC SC RUPEE SUDANESE DINAR SUDAN POUND ST HELENA POUND SIERRALEONLEON SAO TOME DOBRA SOMALI SHILLING SWAZILAND LILAGENI TUNISIAN DINAR TANZANIA SHILLING UGANDA SHILLING CFA FRANC CFA FRANC SOUTH AFRICA RAND ZAMBIAN KWACHA ZIMBABWE DOLLAR BID ASK 1.28 1.28 94.03 94.04 1.52 1.52 0.95 0.95 1,595.99 1,597.21 28.26 28.31 1.04 1.04 1.02 1.02 6.52 6.53 5.83 5.84 5.82 5.82 31.06 31.07 1.81 1.81 123.53 123.79 3.26 3.27 20.10 20.12 237.28 237.68 8.14 8.15 3.64 3.65 109.00 109.35 1.51 1.55 1.53 1.53 59.99 60.19 0.40 0.40 11.70 11.71 1.65 1.66 1.52 1.52 5.92 5.93 0.55 0.55 150.86 150.92 2.69 2.69 47.45 48.45 3.41 3.42 3.44 3.45 95.74 96.22 1,551.00 1,601.00 0.12 0.12 904.01 934.01 85.59 87.09 174.70 78.87 80.29 6.80 6.80 14.01 18.41 18.59 9,254.25 9,280.15 32.00 34.00 6,931.00 7,431.00 85.25 85.75 383.50 384.75 73.75 75.75 9.23 9.28 1.28 1.30 8.65 8.66 2,236.00 2,276.00 276.00 283.00 31.20 31.35 380.00 395.00 30.00 30.20 158.45 158.65 630.00 638.00 11.27 12.11 200.02 201.02 2,025.50 2,035.60 1.52 1.52 4,270.00 4,345.00 18,539.00 19,686.00 1,518.00 1,618.00 9.22 9.27 1.60 1.60 1,612.00 1,622.00 2,585.00 2,595.00 511.71 514.41 511.75 516.25 9.24 9.26 5,185.00 5,205.00 378.00 381.00
1,538.50 11.50 702.50 221.00 57.00 4.90 1.50 0.36
1,129.00 6.50 67.45 94.78 68.32 8.25 0.35 0.48 0.34 0.03
3,527.00 13.50 233.00 186.60 74.50 5.24 105.95 0.80 0.60 0.20 0.01 0.15
1,703.50 -0.50 6.76 14.55 10.49 37.36 30.42 81.20 -0.01 -0.02 -0.02 -0.09 -0.07 -0.20
BANCO BILBAO VIZCAYA ARGN SPAIN UBS TELEFONICA S.A. TOTAL DEUTSCHE BANK TELEFON L.M. ERICSSON B ZURICH INSURANCE GROUP SIEMENS ENI ABB RIO TINTO BP PLC ROYAL DUTCH SHELL A SWITZERLAND SPAIN FRANCE GERMANY SWEDEN SWITZERLAND GERMANY ITALY SWITZERLAND UNITED KINGDOM UNITED KINGDOM UNITED KINGDOM
264.20 -0.70 84.03 17.53 21.41 -0.45 -0.10 -0.13
3,085.00-19.50 459.90 -3.55
2,129.00-20.00
SOURCES: SIX FINANCIAL INFORMATION; WSJ MARKET DATA GROUP
Global Indices
NAME DJ INDU AVERAGE FTSE EUROTOP 100 XETRA DAX PF CAC 40 INDEX FTSE MIB SMI PR HANG SENG INDEX NIKKEI 225 INDEX ALL ORDINARIES STRAITS TIMES SSE COMPOSITE S&P SENSEX LOCATION NEW YORK LONDON FRANKFURT PARIS MILAN SWITZERLAND HONG KONG TOKYO AUSTRALIA SINGAPORE SHANGHAI MUMBAI LAST 14,578.54 2,431.37 7,795.31 3,731.42 15,338.72 7,813.67 22,299.63 12,397.91 4,979.87 3,308.10 2,236.62 18,835.77 NET.CHNGPCT.CHNG 52.38 9.02 6.22 19.78 -15.13 33.5 -165.19 61.95 -27.179 -4.93 0.3191 131.24 0.36% 0.37% 0.08% 0.53% -0.10% 0.43% OPEN 14,526.16 2,423.70 7,791.14 3,710.92 15,307.44 7,790.96 HIGH 14,585.10 2,442.74 7,842.58 3,751.15 15,545.70 7,840.98 22,390.35 12,425.96 5,007.00 3,321.62 2,246.87 18,882.54 LOW 14,520.86 2,421.03 7,778.02 3,695.09 15,243.45 7,781.09 22,132.33 12,319.75 4,979.90 3,306.34 2,228.81 18,568.43 CLOSE 14,526.16 2,422.35 7,789.09 3,711.64 15,353.85 7,780.17 22,464.82 12,335.96 5,007.05 3,313.03 2,236.30 18,704.53
-0.74% 22,390.35 0.50% 12,405.53 -0.54% -0.15% 0.01% 5,007.00 3,321.62 2,238.48
0.70% 18,702.46
MANAGEMENT &
LI E
27
MANAGEMENT: MANAGEMENT HowXXXXmbling Remain humble to downyou entepise gow

29 Page 28
Page 29
ENTERPRISE: You childs school should ceate a stong chaacte
PERSONAL FINANCE
SKILLS Forget entrepreneurship college, the best way is to practically build businesses, says author
to bring in that nuts-and-bolts knowledge.
Dont focus on making money in your 20s:

Tune out the idea of making your rst million. Its about learning. You are there to accumulate as much experience building a business and you want to build several, if possible, says Greene. In the rst ve to 10 years after college, pursue experience over money. You will learn more than you could earn in those years.
When you have some experience, select a mentor:

When selecting a mentor, look for somebody who is already doing what you see yourself doing in ve to 10 years, says Greene. If you are going to try to approach a master to be your mentor, wait to do so until you have already started amassing a body of work. A healthy mentorship relationship is like that between a parent and a child, says Greene. A good mentor should be older than you and at a point in his or her career that he or she is wants to give back. Personality is important, too. You want somebody who matches your spirit. If you are a very rebellious type, you dont want a stuy conservative type mentor, says Greene.
No need to attend exta school, highly successful people lean by doing T

he notion of a miraculous genius being born smarter and more capable than the rest of us mere mortals charms our curiosity. Robert Greene, author of the popular The 48 Laws of Power (Penguin, 2000), would disagree. The fascination we have in prodigies, he says, is bogus. Its completely bogus. Exceptional talent is about hard work, he says. Greene studied the lives of exceptionally successful people for his latest book, Mastery (Viking/ Penguin, 2012). He says that there is no such thing as being born into superior success. Rather, those politicians, entrepreneurs, scientists, athletes and artists who rise above the rest in their eld, achieving what he calls a high-level intuitive feel for their specialty, have an unyielding focus and work ethic. Its not a question of some natural talent or brilliance that you have, its that you have reached that level of experience or practice, Greene told Entrepreneur.com. We have to get rid of that oldfashioned notion of genius and creativity. He holds himself to the standard he preaches, having put in more 20,000 hours researching and writing his last ve books. In Mastery, Greene examines the cultural poster-children for naturalborn genius: Mozart and Einstein. For example, by the time he was nine years old, Mozart had already put in 10,000 to 20,000 hours of work, equaling the eorts of an average person in his or her 20s, says Greene. Einstein attributed his own success to persistence, he says. Greene de-
A condent entrepreneur. If you arent going to start your own business, at least work in as small a company as possible to learn diverse skills. FOTOSEARCH
and maintaining the long hours and fervent curiosity required to rise to the level of mastery in a eld. Otherwise you are never going to have the energy, the patience, the persistence, the ability to put up with the criticism, you will give up too easily, you wont push through all the crap the world is going to throw at you.
veloped a near cult-following for his methodical and, some say, Machiavellian breakdown of power and the people who wield it in The 48 Laws of Power. Part of what makes Greene popular is that he studies powerful people and then breaks down their process such that others can emulate it. Here are recommendations from Greene for entrepreneurs eager to be the next Steve Jobs.
Chose a topic to focus on that you are deeply in love with:

Masters and highly successful people are emotionally and personally engaged in their work on a level beyond intellectual curiosity, Greene says. Its the personal commitment to a topic, problem or skill that is ultimately necessary for motivating
Learn by doing: According to Greene, learning entrepreneurship in school is inane. Being an entrepreneur is making something, its like Legos, Greene says and the best way to become an entrepreneur is to try building businesses. Henry Fords rst two automobile companies failed miserably, notes Greene. You want to actually psychologically desire failure because it is how you are going to learn. If you arent going to start your own business, at least work in as small a company as possible to learn as many skills as possible. Avoid large corporations and business school, Greene says. As an entrepreneur, you are going to hire the people that have the MBAs. They are going
Be exible and creative: For the book, Greene interviewed Paul Graham, the computer programmer entrepreneur who started Viaweb, a company acquired by Yahoo in 1998 to become the Yahoo Store, and a partner of Y Combinator, an accelerator for startup entrepreneurs. In the highly competitive interview process for Y Combinator, Graham can tell after one minute if he has the next Zuckerberg or this guy is useless, and it is because they are openminded, theyre exible and they love, they are excited, they have a childlike interest, says Greene. Building a company will inevitably confront you with unexpected challenges, and your ability to adjust your path to deal with those surprises is critical.
- ENTREPRENEUR.COM
28
Life: Management
Business success is a tough test, emain humble to gow

MANAGEMENT
Tiger Woods case offers many lessons in humility and power

CANUTE WASWA
STAYING AHEAD
iger Woods is on his way back. The ace golfer is making headlines, again. Not only has he returned to No 1 in the world for the rst time since his career was derailed by a scandal and a string of injuries, but he is also dating Olympic ski champion Lindsey Vonn. Here, the late Wanjiru became the rst Kenyan to win a gold medal in the marathon in 2008. At 21, he had the promise to dominate the distance for another decade. Sammy Wanjiru won ve of his seven marathons and was the youngest runner to win four major marathons. He died at his home in the town of Nyahururu, in the Rift Valley, the cradle of Kenyan longdistance races. It is a huge tragedy, Jos Hermens, a long distance expert and manager of Ethiopian great Haile Gebrselassie, was quoted as saying. He could have won two, three more Olympic Games. He was an incredible talent. Reports say Sammy Wanjiru fell from the second-oor balcony of his house. Whether youre part of a larger organisation or run a business on your
Tiger Woods was brought down by a scandal and injuries.

AFP
own, all careers have serious chal- You have to manage employees lenges fraught with danger. Often, whose job performance reects on the most dangerous thing that can your own. Success is wonderful and worth pursuing, but in that process, happen is, surprisingly, success. People will tend to have unrealis- you start losing focus. tic expectations that most times are As you succeed you get to a place hard to live up to. where deals revolve Success can be one around your experSuccess can of the most dangerous tise, and everyone looks to you for things that can happen sometimes direction. You call to your business and cabe the most reer. And heres why: the shots, and your dangeous When you start a busico-workers line up ness, there isnt enough behind you. thing to historical data to supUnfortunately, happen to you port decision-making. Its while relationships business; but dicult to put all of the are about comprothis is not to reasons for early success mise, youre used into a neat, clean packto getting your way, say it is a bad age of lessons learned. without question. thing by any You have to be careful You looked formeans ward to weekends because some of the lessons learnt are only learnt when you would in hindsight hang out with It is like the milk in friends, enjoying a your cookie recipe. It was good a casual night out or watching a footmonth ago, but if you use the same ball match together. But the new success, however, has milk today, your cookies will probably taste like the wrong end of a come with a list of new priorities. Playing golf with potential clibad day. If youre not careful, you might try ents, going for after-work drinks to repeat your process of what made with colleagues, and hobnobbing you successful but end up with hor- with industry insiders suddenly rible or lacklustre results. seem much more important than If you are like me when I was those old friends and recreational starting out, youre always availa- pursuits. ble by cell phone, and it seems that That is when to remind yourself time for reection is constantly in- that humility does not come easily terrupted by matters that you feel to the successful entrepreneur. It is cant wait. almost contrary to his nature. Yet, You know that people at the of- without humility it is hard to learn ce rely on your input, and you feel new things and grow. The only sopressure to be there when needed. lution is to cut through the clutter You are an indispensable piece of the and the clamour by getting back to puzzle at work. your roots. But more opportunities mean Yes, success can sometimes be more options and distractions. You the most dangerous thing to hapwin one client, then another, then pen to your business. Thats not to say that success is bad by any means, another. Then you need more infrastruc- but even success has to be managed. ture and have to hire and train help. Ask Tiger Woods.
Planning is not a tem pape, have the basics at ngetips

BY TIM BERRY
f youre serious about starting your business even if you dont have anything down in writing youve already started to plan. So, how do you nd time to write a business plan? You dont. You are always planning. Your plan is never done, but your planning process is your key to good management. Your plan is for you rst. Dont make it for anybody else. Do it because it helps you divide and manage big goals into practical steps. Instead of looking at it as a document, think of your business plan as a place on your computer where you collect ideas, useful stories, lists and numbers. Its a place where you keep track of the market, your milestones, goals and projections. Planning is a process that includes review and revision. Theres always a latest version and it lasts just a few weeks. All your business
People who use plans well, create many versions for new ideas. FILE
plan really needs at the early stages is: Milestones: Whats supposed to happen, when, and whos responsible. Basic numbers: Simple spreadsheet projections for sales, costs and expenses. Strategy: Strategy is about deciding how to
focus a business oering on a key target market. It can start with just bullet points. Ive seen it done well with pictures. Its mostly a reminder for you and your team. Cash ow: Because prots dont guarantee enough cash to pay your bills, you need to manage cash from the beginning. Month by month, account for what you spend and what you deposit not prot as it appears on the books, but money as it shows in the bank. Review schedule: Set aside time for a plan verses actual review once a month to compare what you planned would happen in your business to what really happened. Be brief and practical. Keep track of these main elements and grow your plan organically as your business grows. By recording what is supposed to happen youll be able to better manage why, when and how things go wrong.
And youll be able to set performance metrics and develop accountability for dierent tasks and milestones. Youll add some thoughts about mission statements and mantra when you want. Youll add plans for organisational growth and structure as they become necessary. Dont bother with the parts you wont use like descriptions of yourself, your product and your team until theres a business purpose for them. This is not a term paper; its a plan. Sooner or later youre also going to want to share whats supposed to happen with a partner, employee, vendor, bank or investor. When you are communicating with someone else and need your business plan in one place, you can spin it out from its components to a document. At that point, you should take the trouble to do a summary, add descriptions of the business entity, history, team and market.
29
Life: Labour
Tid Bits
Liberate employees and recharge the business
BY KARAN GIROTRA AND SERGUEI NETESSINE
A young woman studies online. Business leaders should encourage their children to build future networks. FOTOSEARCH
Education should help ceate stong chaacte in you child

Important points
PETER MUTUA
Leaders of family business should consider a schools culture to be more important than its academic performance.
Our research shows that innovating how a company engages with its workforce is an often overlooked way of increasing business model performance. The basic structure of the rm-employee relationship hasnt changed much over the last 50 years. Relying on a forecast of organizational needs, rms simply select the nature and number of employees, and then assign them working hours and responsibilities. A few pioneering companies are challenging this traditional model and discovering unprecedented opportunities along the way. Theyre doing so by:
Rethinking who their employees are

Traditional organisations identify a set of individuals as their employees before theyre fully aware of each persons talents and needs. LiveOps a cloud-based customer service provider maintains a virtual workforce of independent agents who, based on their schedules, signal their availability to join a pool of talent waiting to be hired once a call that matches their skills comes in. LiveOps gathers enough data on employee performance to intelligently route calls to the best available agent. LiveOps unique approach eliminates the multiple ineciencies associated with traditional call centres: idle employees, long wait times and calls routed to incompetent agents.
FAMILY BUSINESS
We couldnt believe our eyes when we visited Alliance High School; right there on the clothes lines were Man U and Arsenal jerseys put out to dry and there was no one looking after them. If this happened in our school, the clothes would disappear in a ash. Andrew Nzioka and Martin Mariga, students at local universities on a visit to the Alliance High School.
As far as possible, the school and home cultures should be congruent.
Leaders of Family Business should encourage their children to use their time in school to build character and strong networks.
oung bears are taught how to forage by their mothers. They do this by allowing the cubs to smell their mouths after they eat. Because of their keen sense of smell (a polar bears can smell seals 30km away), this scent of food permanently registers as being good and acceptable by the cub. The downside is that bears accustomed to eating human food and garbage pass on this preference to their cubs. The young bears grow up and resort to rummaging through garbage bins and breaking into homes and cars to get food, making them a menace to humanity. Kenyas 8-4-4 education system gloried entrance into university as the ultimate goal of acquiring an education. Right from primary school, academies sprang up whose sole claim to fame was the average students marks and the number of children taken to national schools. It was not unusual to hear of schools using unconventional tactics such as registering better performing students in one unit and lesser performers in another. Holiday
tuition transformed itself from an optional remedial measure for slower students and being accepted as part of the school calendar. Children rarely played in the open. High schools were not left behind. The sole objective of secondary schools became to insert as many students into the public universities, with little care given to the welfare or development of the students. Many schools are gauged by their average marks and numbers of students placed in public universities, forcing some to duplicate what they see in high performing schools in a bid to climb up the ranks. Matters have since changed drastically. Parallel programmes have been introduced in public universities, ensuring that any student who meets the basic university qualications can pursue any course of their choice. Performance at primary/ secondary school level, while important, is not the life and death struggle of the yesteryears. What does this mean for the Leaders of Family Business whose children are now in primary or secondary school? What does it mean for them as they select schools for their scions to attend? Leaders need to understand that in this context, a schools culture, especially in a childs formative years, is much more impor-
tant than its academic performance. How things are done in school, what is encouraged/ discouraged by the administration is critical in a childs development, especially for those who will in future take up roles of leadership in the family business. So it is with human institutions such as schools where young students look up to their elders and teachers for direction as to what is good or evil. Children, especially those in boarding schools will conform to the administrations requirements, taking up their values and imitating them. Given that they spend more than 75% of their time in school, it is important that the schools values are congruent with those at home. What is the leader of Family Business to do? First, remember that attaining high marks in national examinations is not the best or only means by which to evaluate a school. Building character during the formative years is much more important. Leaders should remember that while they can later supplement an average students school fees to pursue parallel degrees, they cannot supplement poor character formation. Second, leaders should make diligent inquiry into the underlying values, acceptable and unacceptable behaviour in the schools they send their children to. Lastly, leaders should encourage their children to use their time in school to build character, engage with others (teachers and students alike) and build future networks. If they graduate with this and nothing else, they are geared for success. Mr Mutua is a Humphrey Fellow and a leadership development consultant focused on family businesses. Email: p.m.mutua@googlemail.com
Rethinking where and when their employees work

All employees at Automattic, the parent company behind Wordpress (the leading blog platform), work from home, or wherever they happen to be located. The sta have no set working hours, nor do they have to check in at the oce. The company is fundamentally challenging the assumption that employees need to be physically present to do their best work.
Rethinking what their employees do

Traditional organisations assign employees to teams, projects and tasks. Based on the rms assessment of each employees talents and interests, managers assign them to the projects that would suit them best. The famed Google initiative allowing engineers to spend 20 per cent of their time working on passion projects directly challenges the notion that employees should only focus on their assigned work. Reportedly, some of Googles most well-known products, such as Gmail and Google News, have originated in these passion projects. Not all of these innovations are likely to be appropriate for every organisation, but they do highlight how important it is for rms to challenge their assumptions about the employee-employer relationship. Girotra is a professor at Insead in Fontainebleau, France. Netessine is the Timken Chaired Professor of Global Technology and Innovation at Insead.
Challenge your assumptions about employee-employer relations. FILE
30
Life: Marketing
Suga-coating advetisement confuses the message

MARKET TALK
BY BONIFACE NGAHU
classic example of how messages can be taken literally was the promotion of family planning by the government several decades ago. Clinics had put up posters which displayed two families. One was poor with many children and a dilapidated house in the background. The other was a perfect small nuclear unit with a beautiful house in the background and a saloon car. The government later engaged researchers to understand why the reproductive health behaviour among the poor was not changing despite so much communication to the community.
Learn to communicate sensitive matters without obscuring the meaning or offending sensibilities
he recent uproar about the advertisement encouraging unfaithful couples to use condoms provides some interesting perspectives. It is obvious Pope Francis would not approve the airing of such an advert but you may want to consider the dilemma facing its sponsors. I imagine they have conducted research and found that previous campaigns against extra marital aairs may not have been quite successful. The next step would be to nd a way of advocating for responsible behaviour. The main challenge the advertisement was attempting to address is the increasing rate of HIV/Aids infections among married couples. How do you communicate such a sensitive matter without raising eyebrows and hackles? There were no complaints about the previous Wacha Mpango wa Kando (stop extra marital aairs) advert. This means society appreciated that this is a serious problem. The only complaint I heard was that the advert may have given some people ideas. The new communication that has since been discon-
Many children
To their shock the poor indicated that from the communication, they got the message that you should have many children if you are poor. They also took the poster to mean that children belong to the government and it should take care of them. This is why the society should boldly address controversial issues. We should not bury our heads in the sand like the proverbial ostrich. Let us not just blame those who are attempting to communicate sensitive messages about real problems. We should help them to communicate eectively by suggesting better ways of passing the message. Sponsors either know something that we dont know or we are not willing to accept reality. We must also appreciate the risks of being taken literally when communicating sensitive messages. Besides, messages must be as simple as possible. Mr Ngahu is the Marketing Director of SBO Research. E-mail: b ngahu@sboresearch.co.ke, Twitter @bngahu
A woman displays a female condom to a group in Nyeri. Advertisers should ensure their messages get through to potential beneciaries by making them as simple and as clear as possible. FILE tinued appeared to be informed by the resistance to behaviour change. In addressing resistance to change, one strategy is to create a win-win situation where your target wins by continuing to do what they have been doing and you win by your intervention getting acceptance. Kenyans and religious leaders were up in arms against the new approach which they claimed was encouraging promiscuity. The other complaint from parents was that children were asking far too many questions about it. The biggest problem was that the advertisement was being taken literally and was hence perceived to be unsuitable for family TV viewing. I remember how parents fought the introduction of sex education in schools. It appears that we are insulating the future generations from the harsh realities of life by failing to eectively pass some messages that are essential for survival. These are matters that require bold approaches and I hope that those who blocked the advertisement will address the challenges facing our society using other strategies. This debate captured the imagination of the Nation cartoonist who wondered how Jesus would respond to critics of the advertisement that caused such heated debate. The cartoonist referred to an incident where Jesus asked anyone who has never committed adultery to cast the rst stone at a woman who a mob had accused of the same oence. I also remember an old condom advert that was not so explicit. One had the message: Do not cross Mombasa Road blindfolded It seems the public want such hidden messages. But there is the risk of this being taken literally . The sponsors of the recent condom advert have experience in passing dierent messages to the public and they were probably avoiding the risk of the message getting lost in sugar-coating. Another
Times Crossword 23,908
Across 1 Style thats plain, no question about it? On the contrary (7) 5 All delivered after capture (7) 9 Moved by gravity, lake is owing into sea (9) 10 A mark to scrub for Eisensteins maid (5) 11 Oil, say, I had put on part of face (5) 12 During organised day in Rome, pressure for minimum ups and downs (4,5) 14 Erect radar site at sea, where access can be controlled (10,4) 17 Subversive addition to quartet of writers? (5,9) 21 A couple of points xed as I desire (9) 23 Dismiss as valueless ultimate in
hot spots (5) 24 The start literally, of Troilus and Cressida?(5) 25 Bars of music at last in Chopins works (9) 26 To cry is not right any more (7) 27 Easily defeat in recount thats ordered (7) Down 1 Shakespeares all-round reputation (6) 2 Picking up fruit-tree I left to fall back (7) 3 A hundred pennies drop: the game is up! (9) 4 Whats placed by plate? Resignation, sadly (6,5) 5 Announced best lm (3) 6 Way to eat some weeks, having
chips in (5) 7 Mixer in litres taken in drunken spree (7) 8 Marine mammals elegance tak-ing sh in sound (4,4) 13 Conan Doyles behind a bit of capital thats raised (7,4) 15 Give pounds to old sculptor (9) 16 One sent to cover unsatisfactory private road (3-5) 18 French clown once very worried (7) 19 Substitutes reputation not good (5-2) 20 Pure speed about to go to the head (6) 22 Wine lifts atmosphere, around one March (5) 25 Dog needs a clean up (3)
23,907
31
Life: SPORTS
Pixie piper
Ailines told to chage obese people moe
Airlines should charge obese passengers more, a Norwegian economist has suggested, arguing that pay as you weigh pricing would bring health, nancial and environmental dividends. Bharat Bhatta, an associate professor at Sogn og Fjordane University College, said that airlines should follow other transport sectors and charge by space and weight. To the degree that passengers lose weight and, therefore, reduce fares, the savings that result are net benets to the passengers, Bhatta wrote this week in the Journal of Revenue and Pricing Management. He argues that carrying lightweight passengers will reduce the use of environmentally costly fuel. Bhatta put together three models for what he called pay as you weigh airline pricing. The rst would charge passengers according to how much they and their baggage weighed. A second model would use a xed base rate, with an extra charge for heavier passengers.
Euopes elite football teams lock hons in quate nals

CHAMPIONS LEAGUE
Intriguing last-eight ties kick off today

The Champions League tie between Bayern Munich and Juventus is the outstanding pairing of the round but there are glittering jewels and duels to savour everywhere in the quarternals of Europes elite soccer competition this week. While Bayern, the German champions-elect, face Juve, the Italian champions-elect, in Munich tournament favourites Barcelona and Paris St Germain, two more teams set to be crowned domestic kings soon, have an intriguing rst-leg tie in the French capital. Real Madrid host Turkish league leaders Galatasaray while the surprise survivors and Spains third team Malaga are at home to Borussia Dortmund. Five of the quarter-nalists are far ahead of their rivals in their own leagues and look set to nish as domestic champions long before the end of the season enabling them to concentrate their eorts on Champions League success if they advance to the last four. Bayern are 20 points clear of Borussia in Germany and would have been crowned champions on Saturday, after their staggering demolition of former European champions Hamburg, until Robert Lewandowski scored a late goal to give Dortmund a 2-1 win at VfB Stuttgart. Juventus beat Inter Milan 2-1 on Saturday to move 11 points clear of AC Milan at the top of Serie A, while Barcelona are 13 points clear of Real Madrid in La Liga. Despite the absence of any English Premier League teams in the last
Buddhist monk uns ba in Japan

Japanese Buddhist monk Yoshinobu Fujioka enjoys bringing his congregation together, one cocktail at a time. Fujioka owns the 23-seat Vowz Bar in central Tokyo, where Buddhist chants replace karaoke songs and the shaven-headed bartenders serve up sermons and homilies along with the drinks. People would gather in a Buddhist temple and drink together, weve just updated the tradition to t our times, said Fujioka, who also works at a temple just outside Tokyo. They become totally different believers here, the distance between them and myself diminishing. They are more connected with each other, he added. Vowz Bar has been going strong for 13 years and the cocktail list includes the vodka and cognac-based Perfect Bliss as well as Innite Hell - a vodka, raspberry liqueur and cranberry juice concoction with a splash of tonic water. The special is called Enslavery to Love and Lust and costs around 800 yen ($8.51).
eight for the rst time since 1996, this years nal in London could feature a Clasico between Real and Barca or an all-German nal between Borussia and Bayern. The quarter-nal draw kept alive those prospects at the same time as serving up four intriguing last-eight ties which kick o on Tuesday when Bayern host Juventus and PSG play Barcelona. Bayern, last seasons losing nalists, squeezed into the last eight on away goals after beating Arsenal 3-1 in London before a surprise 2-0 home defeat in the second leg, but they showed that aberration was behind them. Peruvian striker Claudio Pizarro scored four with Dutchman Arjen Robben adding two more in a dazzling performance that will put Juve on full alert. Bayern coach Jupp Heynckes said: We played textbook football at times today and the title cannot really slip
away any more. It was important to ll up on condence but Tuesdays game will be dierent with Juve being a top European team and much more aggressive. Juventus though had a good win of their own, with goals from Fabio Quagliarella and Alessandro Matri giving them victory over Inter. Tuesdays match will be a contrast in styles with Bayern usually favouring a 4-2-3-1 system while Juve play a 3-5-2 style with Andrea Pirlo attempting to orchestrate their attacks from mideld. A classic is on the cards. Barcelona bounced back from a 2-0 rst-leg defeat to Milan in the last 16 to triumph 4-0 at home. The clash between Real Madrid and Galatasaray brings together more old club mates: Jose Mourinho, Didier Drogba and Wesley Sneijder.
- REUTERS
SUDOKU PUZZLE
How to play
236
Fill the grid so that every row, every column and every 3x3 box contains 1-9. You solve the puzzle with reasoning and logic and not mathematical ability
Bayern Munich players (from left) Xherdan Shaqiri, Marcio Ranha, Anatoliy Tymoshchuk, and Daniel van Buyten celebrate after a past game. The team will today host Juventus while PSG will play Barcelona. AFP
Marussia sign sponsorship deal to boost tight team budget
Russian-licenced team, did not reveal the nancial details of the one-year deal with Liga Stavok (Betting League) but saw it as just the start of many good things to come. It costs us 1.25 million pounds ($1.89 million) per week just to stay in Formula One, to maintain this level. Obviously if you want to move up you need a much bigger budget, he said. The rst one is always the most important and Im glad that Liga Stavok has made that historic breakthrough.
Tail-enders Marussia hope to take advantage of Russias growing interest in Formula One and boost their tight budget after signing a sponsorship deal with a Russian betting company. Andy Webb, chief executive ofcer the
Flamboyant Di Canio appointed Sunderlands head coach

Sunderland entrusted amboyant Italian Paolo Di Canio with the task of securing their
Premier League survival when they appointed him as head coach in place of the sacked Martin ONeill. Di Canio, who enjoyed a colourful playing career with clubs, including Juventus, AC Milan, Lazio, West Ham United and Celtic, has never managed in the top ight and joins 16thplaced Sunderland six weeks after quitting third-tier Swindon Town. Paolo is hugely enthused by the challenge that lies ahead of him. He is passionate, driven and raring to get started, chairman Ellis Short said on the clubs website after Di Canio signed a two-and-a-half year contract. The 44-year-olds appointment prompted former British foreign secretary David Miliband to quit the Sunderland board.
Last Weeks Fridays Solution
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Rebels form C Africa govnt

The Central African Republics prime minister has named mostly rebels and opposition gures to his new postcoup government, as reports emerged of child soldiers killed in the ght for the capital. Prime Minister Nicolas Tiangaye who has been allowed to keep his post by new strongman Michel Djotodia, whose rebels seized the capital a week ago named a 34-member cabinet on Sunday that includes nine ministers from the Seleka rebel coalition. The new government includes eight ministers from the former opposition and a close ally to ousted president Francois Bozize.
25 die in Dar building mishap

The death toll from a building which collapsed in Tanzanias economic capital Dar es Salaam reached 25 on Sunday, ofcials said as hope faded of nding those missing two days after the accident. Six bodies were found between Saturday night and this (Sunday) afternoon. This brings the total number conrmed dead to 25, Dar es Salaam Regional Commissioner Saidi Mecky Sadicky told AFP, updating an earlier toll of 19. The rescue exercise is still going on slowly. It is complicated and there is rain, but they will continue working there until every point is sifted,
far from ready to take the place of foreign troops to defend the West African nation against fresh attacks by Islamist insurgents. As France prepares to withdraw its 4,000 troops after routing Al Qaedalinked forces from northern cities, the rst of four Malian battalions begins training with battle-hardened European instructors on April 2 as part of a wider effort to bring the army up to scratch as quickly as possible.
Anti-poacher plane kills ve

A South African military helicopter crashed during an anti-rhino poaching patrol over Kruger National Park, killing ve people, the army said Sunday. The helicopter was on a scheduled aerial patrol of the Kruger National Park as
EU overhauls Mali army

The EU began an ambitious top-to-toe overhaul yesterday of Malis ragtag army,
part of Operation RHINO, the anti-rhino poaching operation, Brigadier General Xolani Mabanga said in a statement. A preliminary investigation is currently under way to establish the sequence of events that led to the fatal crash of the helicopter, he said, adding that the accident occurred on Saturday. The craft was an Agusta 109 deployed to Kruger, a huge game reserve in the north of the country, by the military, which has been assisting rangers in the ght against rhino poaching.
HE SAID
Do not go where the path may lead, go instead where there is no path and leave a trail.
Ralph Waldo Emerson an American essayist, lecturer, and poet, 1803 1882
Late Diana went to gay bar

Queen singer Freddie Mercury disguised the late Princess Diana as a male model and smuggled her into a notorious gay bar, according to a memoir serialised in Britains Sunday Times. Comedian Cleo Rocos describes in her book The Power of Positive Drinking how she, Mercury and fellow comedian Kenny Everett dressed Diana in an army jacket, cap and sunglasses for a night out at the Royal Vauxhall Tavern, south London, in the late 1980s.
21 bodies found in landslide

Rescuers have recovered 21 bodies three days after a massive landslide in Tibet buried more than 80 mine workers, China National Radio reported on Monday. Another 62 miners remain missing under two million cubic metres of earth east of the Tibetan capital Lhasa, with about 3,500 emergency workers battling snow and altitude sickness to search for them. Some searchers dug with their bare hands to avoid damaging bodies or because the disaster had blocked roads needed to deliver large-scale rescue equipment, reports said.
a sub-type that had not previously been transmitted to humans the government said Sunday. An 87-year-old man in Shanghai fell ill on February 19 and died on March 4, while a man aged 27 in the city got sick on February 27 and died on March 10, the National Health and Family Planning Commission said on its website. A 35-year-old woman in the eastern province of Anhui became ill on March 9 and is in critical condition, it said. All three initially suffered fever and coughs but later developed severe pneumonia and problems with breathing.
Two Chinese die of bird u

Two people in China have died after being infected with H7N9 avian inuenza
Pope prays for Syria solution

Pope Francis prayed for a political solution in Syria and for reconciliation on the Korean peninsula in his rst Easter
Sunday message in front of a crowd in St Peters Square. Latin Americas rst pontiff also issued an appeal for hostages held by militants in Nigeria and condemned human trafcking as the most extensive form of slavery in this 21st century. The pope delivered his Urbi et Orbi blessing to Rome and the world from the same balcony of St Peters Basilica where he made his rst appearance after his momentous election to the papacy on March 13.
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Health NEWS
Diabetes drug may harm user

Type 2 diabetes patients who are on incretin therapy have a higher risk of developing abnormalities in their pancreas compared to their counterparts on other types of diabetes therapies, researchers from the Larry L. Hillblom Islet Research Centre at UCLA and the Diabetes Centre at the University of Florida reported in the journal Diabetes.
Herbs reduce hot ashes

Perimenopausal women who took a Chinese herbal formula called EXD (Er-xian decoction) experienced a signicant reduction in the number of menopausal hot ashes, researchers from the University of Hong Kong reported in Menopause. Among the females in the trial, a reduction in the frequency of daily hot ashes of 62 per cent was observed.
War on obesity goes digital

UK-based scientists have designed an intelligent microchip which they claim can suppress appetite. Animal trials of the electronic implant are about to begin and its makers say it could provide a more effective alternative to weight-loss surgery. The chip is attached to the vagus nerve which plays a role in appetite as well as a host of other functions within the body.
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Radar Screen

Governor Kidero has his work cut out for him

Ideas & Debate

TUESDAY, APRIL 2, 2013

WWW.BDAFRICA.COM KSH50 | TZ SH 1,700 | UGSH2,700 | RFr900

Investos ean millions fom owneship of NSE-listed ms

Touism leads ace fo peace dividend afte a calm vote

ICEA LION GROUP CHAIRMAN

KCB FOUNDATION DIRECTOR

Dividends declared for 2012 nancial year

Dividend (Sh mn)

SOURCE: COMPANY REPORTS

shillings from their investments in the listed rms

Rare sh species dwindle as human activities take toll in Nile basin

UN report sees 6pc growth for E. Africa

Helios to maintain stake in Equity Bank

BUSINESS DAILY | Tuesday April 2, 2013

Electicity cost to go up on inceased fuel, foex chages

given Kenya Powers push for tariff review

Vandalism leaves Naiobi esidents in the dak

Maintenance work at a power line. FILE

150C 270C 240C 23 C

140C 170C 260C 270C 160C 140C

320C 260C 220C

Tuesday April 2, 2013 | BUSINESS DAILY

Goveno Kideo has his wok cut out fo him A

BUSINESS DAILY | Tuesday April 2, 2013

Kenyas billionaies club sees fotunes ise in NSE windfall

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Touism secto in pole position to enjoy peace dividend

Tuesday April 2, 2013 | BUSINESS DAILY

ECONOMY & POLITICS

UN epot sees 6pc economic gowth fo E Afica

and minerals to boost regions income

Goveno odes agency to pay taxes

BUSINESS DAILY | Tuesday April 2, 2013

ECONOMY & POLITICS

Businesses see gowth afte Supeme Cout judgment

Coast hotels set to lay o wokes in low touist season

say casual staff will go on leave as the facilities embark on renovation

NCPB stats sale of subsidised fetilise today

Tuesday April 2, 2013 | BUSINESS DAILY

Helios makes U-tun on Equity exit

James Finlay stopped fom closing hospital

shareholder, says lender has room for growth

SOURCE: ANNUAL REPORTS

Honda unveils local patne in Sh450m motocycle plant

BUSINESS DAILY | Tuesday April 2, 2013

National Bank mulls st ights issue since listing

NBK Top Shareholders %

SOURCE: ANNUAL REPORT

CMC in fesh cout bid to stop Jagua Land Rove

CMC ofces. FILE

Tuesday April 2, 2013 | BUSINESS DAILY

IDEAS & DEBATE

Chinas unconditional foeign aid fo Afican counties is a big myth

Angela Merkel German Chancellor

Barack Obama US President

BUSINESS DAILY | Tuesday April 2, 2013

EDITORIAL & OPINION

Published by the Nation Media Group, Kimathi Street, Nairobi

Uhuu should pioitise ou economic gowth

I was born a pessimist... My blood type is B negative...