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Economy
Page 6
What most Kenyan workers are looking for in a job
Money and Markets

Treasury close to Sh34bn overdraft ceiling
Page 21
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Friday October 11, 2013 - Sunday October 13, 2013
BRIEFING
Cental bank eels unde the weight of Sh7bn legal claims

Potential exposure rose nearly30 times from the Sh267 million the previous year
BY GEORGE NGIGI
CDF allocations to favour remote zones

Poverty stricken far ung rural constituencies in former North Eastern, Eastern, Coast and Rift Valley provinces will take the lions share of the Sh23.06 billion constituency development fund (CDF) allocations while majority of those in towns will get the least.
Page 6
Schools laptops supplier to be named next week

The supplier of 1.3 million to Standard One pupils will be known next week after the government said it had resolved the challenges on pricing.
Page 7
Top owners of KenolKobil transfer their shares

Top owners of KenolKobil have transferred shares worth Sh1.3 billion within the ve months to July and weeks after the oil marketer announced the collapse of plans to sell a majority stake to Swiss rm Puma Energy.
Page 10
Time Warner in cartoon row with local sweets rm

New York listed Time Warner has sued a local sweets manufacturer over the use of its cartoon trademarks. The rm wants Kenafric Industries stopped from wrapping its sweets with packages branded BEN 10.
Page 11
From left: Sage Pastel Ltd regional manager East Africa Nikki Summers, KPMG East Africa chief executive ofcer Josphat Mwaura and Interconsumer Products Limited MD Paul Kinuthia during the Top 100 Mid-Sized Companies Conference at the Safari Park Hotel yesterday. DIANA NGILA
Nairobi
Cash ow cisis hindes SME gowth

BY DAVID HERBLING
NEWS INDEPTH
Free maternity service in public hospitals gives hope to mothers with preterm babies
Pages 16-17
Majority of small rms in Kenya rely on bank loans for capital nancing, putting their growth expansion at the mercy of lenders and uctuating interest rates, a new study has shown. An analysis of rms that entered this years Top 100 mid-sized companies survey shows that the number of SMEs that turned to lenders for credit lines and overdrafts increased to 67 per cent compared to 57 per cent in 2012. The ndings were released yesterday ahead of the unveiling of Kenyas top SME this evening in the an-
nual entrepreneurs competition. As a result of the high cost of credit, most entrepreneurs have cash ow challenges, hence resorting to digging deeper into their personal savings; with others turning to friends and family to raise funds for day to day operations. About half of the businesses face working capital and funding challenges mainly arising from delays in payments from customers, said Sheel Gill, head of transactions and restructuring at KPMG East Africa. Most entrepreneurs rely on bank loans as a source of capital for expansion and operations; as
well as borrowings from friends and family. The ratio of SMEs reporting challenges with working capital increased by three per cent to 49 per cent; blamed on extended debtor days and funds being tied up in xed assets. This provides an opportunity for venture capitalists, private equity rms and angel investors to extend nancing to smallholder businesses in Kenya. Top 100 Mid-sized Companies is an annual survey launched in Kenya in 2008, Uganda in 2009 and Tanzania in 2010 by auditing rm KPMG East Africa TOP 100, Page 4
Central Bank of Kenya (CBK) has set aside Sh7 billion in the just concluded nancial year to pay for massive unexplained legal claims. The nancial sector regulator , currently embroiled in a multi-billionshilling fake bond scam, declined to disclose the source of the exposure in email communication with the Business Daily. So far, the only publicly known high-value claim remains that of Oriental Commercial Bank. Oriental, formerly Delphis Bank, which was owned by controversial businessman-turnedpreacher Kamlesh Pattni, has put a Sh123 million claim on CBK assets with accrued interest dating back from 1993 in a suit led in 2011. The bank is party to various legal proceedings with total claims of up to Sh7.3 billion up from Sh267 million in 2012, reads CBKs annual nancial statement. In the last two years CBK had carried a at gure of Sh266.5 million as its exposure which raises serious questions of what necessitated the sudden surge. The regulatory body does not outline the legal suits it is facing, contrary to the practice of other corporations which detail their legal exposures. It, however, made attempts to pour cold water on the magnitude of the exposure by stating that its legal team had advised that no loss would arise from the proceedings. The bank declined to disclose the nature of the potential claims, that providing for ties down cash that would CBK, Page 4 otherwise be paid
BUSINESS DAILY | Friday October 11, 2013
Index to companies
Major companies cited in todays issue of the Business Daily
Awaded
WHAT THE
NUM BERS SAY
Kebs NTSA NIC Bank KNH NEMA Tullow CBK
3 8 10 16 20 20 21 Uhurus party dislodges ODM as the richest
Fresh matatu regulations:

New rules are meant to bring order in Kenyas chaotic public transport sector.
Threshold for ownership (vehicles)

Companies
Franchises and management services
25 30
1. sparks ght for 2. Dangote Kitui limestone mines Bill Lay gets Kenya 3. citizenship after KK Security job
Ngina, Biwott in 4. Mama Africa billionaires list More than half of directors 5. face exit in parastatal reforms
Operational requirements Quarterly reports on eet size, accidents involved and customer complaints Operators to keep annual audited accounts
Drivers Welfare
Permanent terms of service NHIF, NSSF Work Injury Benet Act (WIBA) insurance Annual leave (21 days) Work in scheduled shifts
Cashless payment of fare

With effect from July 1 2014 all PSV operators will be required to implement and operate a cashless payment system for all fare BebaPay tap and go technology, already rolled out by Google and Equity Bank M-Pesa eyeing the sector - plan is to give matatus special till numbers for paying fare using Lipa Na M-Pesa Megarider
6. sounds warning 7. Snoring bells KRA now bets on third 8. party data to net tax evaders
Why Indian rm is exiting 9. renery after only ve years
KDN ups stake with new voice unit
10. Two Kenyan startups head to Silicon Valley for Intel

apps contest
Craft Silicon human resources director Priya Budhabhatti (left) and her assistant, Sebastian Wambua (right), receive an award from Deloitte Consulting Limited director Kimani Njoroge after the rm was named the Best Company to Work for 2013 at a ceremony held at the Intercontinental Hotel yesterday. SALATON NJAU
Nairobi
Travel information
11.
Safaricom hits back at doctor over copyright legal dispute
What made news this week

Monday, October 7, 2013
30/=
Mombasa port set for online goods clearance
Kenya is turning to online clearance of goods to cut by two-thirds the time it takes to move imports through the port of Mombasa and reduce the cost of doing business. The government will from October 31 deploy an electronic cargo clearance system at the port to replace the manual system, hoping to cut the clearance time from 10 to three days.
Thursday, October 10, 2013
Fare tariff to be made public
50/=
paid
Commuters to be issued with tickets Passenger manifest for long distance operators
12. Biwott son-in-law resigns from KenolKobil board 13. Adan entangled in push to replace Portlands CEO 14. How couple cracked open tough coconut venture 15. Stock market get top earnings
Correction
In yesterdays edition of the Business Daily, we published a story which erroneously stated that Commercial Bank of Africa and Sameer Investment Company are among top shareholders of Higheld Limited, a company with a 12.46 per cent stake in oil marketing rm KenolKobil. The story also stated that Energy Resources Limited is a shareholder of KenolKobil, while listing Samuel Maina Wamae and James Ruhiu Murigu as directors of the company. We however established that the above named rms are not shareholders of the oil marketing rm. We regret the error and apologise to the companies and individuals for any embarrassment caused. investors
Stock market investors get top earnings

Share prices outperformed all other asset classes in the rst nine months of the year, putting investors at the Nairobi bourse ahead their peers, the latest market data shows. The Nairobi Securities Exchange (NSE) deed political uncertainty and election shocks to outdo Treasury bills, bonds, bank savings, property market and forex trading during the period. Total investor wealth at the bourse as measured by market valuation of all listed companies - rose by Sh518.85 billion during the rst three quarters of the year to stand at Sh1.79 trillion.
Tuesday, October 8, 2013
CEOs of telcos face arrest over Sim card crimes

Mobile phone operators have been implicated in violation of Sim registration rules following a crackdown prompted by the Westgate Shopping Mall terrorist attack two weeks ago. The crackdown being carried out by Communications Commission of Kenya (CCK) and security agents started on Saturday and could see chief executive ofcers of telcos charged in court. We are going to take action on the vendors and CEOs who will be liable to criminal offences committed through any unregistered Sim cards on their network, Inspector General of Police David Kimaiyo said.
Wednesday, October 9, 2013
50
km
Long distance service is anything beyond this range
Night time: 6pm to 6am
How taxpayers lost billions to public ofcials, politicians

Kenyan taxpayers lost more than Sh2 billion in irregular payments to politicians and senior civil servants in the past nancial year, a new report by the Auditor-General indicates. The report shows that up to Sh2.1 billion may have been lost after it was advanced to senior public ofcials in the form of imprests but no paper trail left to conrm its use.
Two drivers to take turns of 4 hours each.
Minutes mandatory stop for every 4 hours driven to enable passengers and the drivers to refresh Value of Kenyas road passenger business (Sh, bn)
More than half of directors face exit in parastatal reforms

The taskforce on parastatal reforms has set new standards for directorship in Stateowned rms that if adopted will oust more than half of the current board chairs and terminate the services of up to one third of directors. The State House-based team has proposed that all chairmen of State corporation boards must have at least a masters degree and up to 10 years experience in a relevant eld, applying academic qualications on directorships for the very rst time.
Audit shock at Sh304 billion that cannot be explained

A third of the money spent by the government slightly more than a year ago cannot be accounted for, auditor- general Edward Ouko has said. In the 2011/12 nancial year report tabled in Parliament on Tuesday, Mr Ouko said accounting ofcers did not properly explain how Sh304 billion or 33 per cent of the Sh920 billion was used. Consequently, I was not able to establish whether expenditures reected in these statements were incurred lawfully and in an effective way as required by Article 229 (6) of the Constitution, he said.
The gures
2012 2013
0 50
sh188.6bn sh205.4bn
100 150 200
Earnings from passenger trafc grew by this last year 250
8.9%
Malkiat Singh to earn 12pc royalties in Longhorn buyout

Iconic publisher Malkiat Singh is set to earn royalties of 12 per cent from his works that have been acquired by Longhorn Publishers. The publisher said it has concluded the deal that will see Mr Singh receive Sh83 million in cash and royalties from the sale of his books.
Number of matatus on Kenyan roads

2008
98,668
The number of PSVs has been on the decline following a government order not to license any new 14seater matatu in favour of high capacity buses and mini buses.
2012
22,052
SOURCE: OPERATION OF PUBLIC SERVICE VEHICLES REGULATIONS, 2013; ECONOMIC SURVEY 2013 COMPILED BY DAVID HERBLING | GRAPHIC BY TEDDY MURIMI
Friday October 11, 2013 | BUSINESS DAILY
TOP NEWS
RADAR SCREEN
M U N A WA H O M E
Electonic cleaance to boost competitiveness

TRADE Launch of new system to speed
up cargo handling and improve revenues

he government will in less than three weeks roll out an electronic clearance system hosting all government agencies under one shop. Ocially called the single window system (SWS), it is expected to cut time used in clearing from Mombasa port, a process viewed as a major contributor to Kenyas lack of competitiveness, and according to its promoters, save the economy nearly Sh22 billion in the near term. Up to now a multiplicity of agencies has been shufing paper, at times working at cross-purpose with each other. With banks, clearing agencies and State agencies now housed under one-online system, players are hopeful that trade, especially on the Northern Corridor which serves the Great Lakes region countries will be less painful and costly. KenTrade chief executive Alex Kabuga told the Business Daily why Kenya can expect major savings from the joint StateInvestment Climate Facility project. Briey tell us how the SWS will practically work especially in terms of hardware, software and manpower The SWS is an electronic platform that will integrate or interface the electronic systems of stakeholders involved in the cargo clearance process including Kenya Revenue Authority (KRA), Kenya Bureau of Standards (Kebs), Kenya Plant Health Inspectorate Services (Kephis), Kenya Ports Authority (KPA) and Port Health. This facility will enable parties involved in trade and transport to lodge standardised information and documents with a single entry point to fulll all import, export, and transit-related regulatory requirements. In terms of hardware/ software, the system will encourage interoperability in the systems of stakeholders involved in trade logistics. The single window system is Internet-based and will be
accessible 24/7. Stakeholders will be able to submit electronic documents from anywhere at any time as long as they have the relevant authorisation in the system. The country will save a lot in manpower/man hours as there will be no need for submission and processing of hard copy documents which are manual and expensive. When it comes to automation, KRA has its own online clearance system called Simba. KPA has had its online system called Kwatos for some time now. So what dierence does more automation and centralisation make? It is not only KRA and KPA which are involved in cargo clearance. There are more than 24 other government agencies and departments involved in the import, export and transit cargo clearance processes in Kenya some have systems while others have manual processes. The single window system will not replace the KRAs Simba or KPAs Kwatos but will integrate with the two among others. Apart from integrating with these systems, the Kenya National Electronic Window System (KNESWS) will create a single electronic platform for submission or approvals of cargo clearance documentation and provide an electronic platform for the other agencies to operate eciently. In addition, the single window will integrate with the National Payments System via a payments gateway to facilitate online payments for trade documentation which will provide an end-to-end trade logistics process in Kenya. So which are the other agencies involved? Nine government agencies out of 25 that form the principal interveners in the trade process were identied to partner with KenTrade in the initial roll out phase. They are KRA, KPA, Kebs, Kephis, Tea Board
The SCE through their implementing agency Crimson Logic will not run the KNESWS in Kenya. The SWS will be operated by KenTrade. Crimson Logic will provide system support over the three-year period. The plan is to have Crimson Logic train and build capacity for KenTrade to be able to fully operate KNESWS. You have talked of massive savings in the three years. How did you determine such amounts are lost and where? Isnt your system still manipulable through wrong entries? First, Kenya is not the rst country to implement the system. Such systems are in operation in Singapore, Mauritius and Ghana to mention but a few. Studies from these countries indicate large savings to the economies through reduced trade transaction costs, delays, ineciencies, corruption, paperwork, cost of capital (JIT Concept), demurrage and improved space utilisation at ports. Second, chances to manipulate the SWS are very slim. Just like any other system KNESWS is putting in place robust security measures using the most current technologies available.
mwahome@ke.nationmedia.com
Kenya Trade Network Agency CEO Alex Kabuga during a recent function in Nairobi. FILE
of Kenya, Pharmacy and Poisons Board, Horticultural Crop Development Authority, Port Health and Department of Veterinary Services. The reason for starting with these agencies was mainly to manage the scope of the project and use the few as a pilot to ensure the System is working optimally before rolling it out to the rest of the government agencies. But the planned schedule is to have all the 25 government agencies involved in trade logistics to be on the system by the end of April 2014. There is still a logistics (cranes particularly) problem of loading cargo at the Mombasa port where a lot of human inuence as opposed to eciency makes the dierence. How do you intend to go round this? There are two main infrastructural problems that contribute to delays and congestions at the port: the physical infrastructure and the soft infrastructure (documentation). The government is addressing the problem of the soft infrastructure through the implementation of the Sh290 million KNESWS. The problem of the physical infrastructure is being addressed through acquisition of new equipment, construction of railway network as well as setting specic targets for each stakeholder through signing service level agreements. In terms of customs clearance, we know that the issue of whether (and how fast) to scan cargo or not is partly determined by the human inuence. As all cargo cannot go through the green channel or express counter, how realistic is your aim to cut the clearance time to just three days? The SWS will have a Dynamic Risk Management Module. This is an intelligent system that will enable targeting of cargo based on pre-determined proles by the various government agencies. The system will then automatically ag consignments as green, red or yellow once certain parameters are met hence eliminating or reducing the need for human interventions. Experience elsewhere has shown that this is achievable. For instance, the Port of Singapore is able to handle more than 30 million containers per annum using similar systems. How are you coordinating the multiple government agencies, some of whose ocers are beneciaries of the ineciency? Is there more cooperation or resistance to the idea? One of key success factors in implementation of any system is stakeholders involvement and investment in change management. We ensure that we are in constant engagement with our stakeholders at every stage of System implementation. In addition, KenTrade has partnered with like-minded organisations such as Kenya Freight and Warehousing Association, Kenya National Chamber of Commerce, to ensure training and communication of the correct information to the stakeholders to align any fears arising from and misconceptions on the KNESWS. Fortunately, most stakeholders are now aware of the SWS and its anticipated benets and are supporting the initiative. The single window system is bought from Singapore Cooperation Enterprise (SCE). What are the safeguards for smooth maintenance skills transfers?
REPUBLIC OF KENYA
MINISTRY OF AGRICULTURE, LIVESTOCK AND FISHERIES READVERTISEMENT AND EXTENSION OF TENDER NO. MOAL&F/SCMD/ AGRIB/5/2013-2014 FOR SUPPLY AND DELIVERY OF ASSORTED TYPES OF FERTILIZER UNDER LONGTERM FRAMEWORK AGREEMENT NOTE: The closing date for this Tender which had initially been indicated as 9th October, 2013 has been extended to 16th October, 2013 Head, Supply Chain Management For: ACCOUNTING OFFICER See details in the Daily Nation of 4th October 2013
TOP NEWS
Cental bank sets aside Sh7 billion fo legal claims

out to public coers it was as a result of their negligence that the bond holders lost money, said through dividend. The Auditor-General has just com- a source in the bond market who did pleted auditing the accounts and is yet not wish to be disclosed due to fears of to submit the same to Parliament as re- reprisal from the regulator. quired by law. In this circumstances, Fred Mweni, who is also accused we are not in a position to comment of handling the fake bonds, has preon the detailed aspects of the accounts viously alleged that several investors until deliberated upon by the Public were aected by CBKs own indelity Investments Committee and impropriety after its of Parliament, said the sta stole treasury bonds governor, Prof Njuguna worth Sh2.6 billion. We ae not in Ndungu. The allegations were International audittermed grievous by the a position to regulator who went ahead ing rm, KPMG, is listed comment on the to seek to be enjoined in as the banks auditor. The bank has a panel of lawyers detailed aspects of the case that had been led making it dicult to trace the accounts until against Mr Mweni by the all cases that it is currently delibeated upon Capital Markets Authority (CMA). facing. by the Public Market players the Business Daily talked to though Fake bonds Investments held strongly that the exIt has not been clear as to Committee posure could be related to who was holding the fake fake bond transactions rebonds and whether the NJUGUNA NDUNGU ported last year, with invesholders were compenCBK GOVERNOR tors who were holding the sated. money widely expected to Analysts noted that it challenge the regulator on would be in the banks interest to settle the matter quietly in orthe basis of negligence. CBK has sued one of its employees der to protect investor condence in the and two others for the creation of the Kenyan debt market and reinforce the fake bonds, which is said to have hap- risk-free reputation of the bonds. pened when the regulator was switchThe National Social Security Fund ing to a new technology platform in (NSSF), which was carrying contingent liabilities of Sh20 billion ve years ago, 2011. They could face legal challenge that has cut the exposure to Sh4.6 billion
From Page 1
CBKs legal exposure (Sh Mn)

CBKs contingent liabilities shot up last year by Sh7 billion on what was attributed to legal claims.
Prof Njuguna Ndungu, the Central Bank of Kenya Governor. FILE following out of court settlements with litigants who were largely contractors. Last year the fund paid Sh810 million to two contractors who were seeking Sh7.2 billion in settlements. In 2008 the banks contingent liabilities also jumped by Sh8.1 billion, an amount relating to the foggy Grand Regency Hotel legal status. The issue was resolved in the same year with the bank selling the hotel at $45 million (Sh3.8 billion) to Libyan investors who renamed it Laico Regency. not receive the dollars in its New York Federal Reserve Bank account as per the spot-contract agreement forcing it to reverse the deposit after 56 days. CBK followed the reversal with the imposition of a Sh6.8 million ne on Delphis Bank for forex losses, Sh10.6 million for breach of banking rules and Sh105.6 million in interest at the then prevailing rate of 65 per cent on the principal amount for the 56 days. Delphis bank settled the claim but has sought reimbursement arguing that it was not liable for the default, which it attributes to Mr Pattni, then its client and major shareholder. The status of the case is not known publicly. Last year, the courts awarded Akiba Micronance Sh1 billion following a decision to irregularly close it at the height of the Pyramid Scheme scams in 2005. It is not clear if the regulator
has led an appeal against the ruling of the magistrate court. CBK has been under pressure to reopen Charterhouse Bank which it put under statutory management following suspicion of money laundering activities. A parliamentary committee last year recommended the reopening of the bank, whose shareholders are known to be extremely litigious, but this is yet to happen. CBK is also involved in a tender dispute worth Sh1.2 billion awarded to Horsebridge International, a decision that was nullied by the banks procurement committee but upheld by the Public Procurement Oversight Authority. gngigi@ke.nationmedia.com
Fine and penalty

The claim by Oriental Bank is in relation to a ne and penalty imposed on the bank following failure to honour a forex-swap transaction with the regulator. In the case CBK says it deposited the money in Delphis account but did
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Cash ow cisis hindes gowth of SMEs in Kenya

and Nation Media Group. The study seeks to identify Kenyas fastest growing mid-sized companies in order to showcase business excellence and highlight some of the countrys most successful entrepreneurship stories. It is also backed by Sage Pastel, Nairobi Securities Exchange, Strathmore Business School and UAP Life. About three in ten or 28 per cent of rms surveyed this year said they are considering listing on the Nairobi bourse; which now has a special segment dubbed Growth Enterprise Market Segment (GEMS) for SMEs. Of these, 49 per cent of the rms mostly in manufacturing, ICT, transport and construction industries plan to list at the bourse within the next two to three years. The cash-related constraints have hampered expansion of SMEs, forcing
From Page 1
Delegates follow proceedings during the Top 100 Mid-sized Companies Conference at the Safari Park Hotel in Nairobi yesterday. DIANA NGILA most of them to operate single branches. Majority of the companies have
no additional branches other than the main oce, the 2013 survey says. Only half of the respondents said they plan to expand and enter regional markets within the next one year, compared to 61 per cent last year. Most Kenyan entrepreneurs are eyeing business deals in Uganda and Rwanda due to their favourable investment climate. To participate in the annual rankings, a rm needs to have an annual turnover of between Sh70 million and Sh1 billion. Almost half of the companies that participated in the 2013 study had an annual turnover of between Sh70 million and 499 million. About three quarters of the companies are fully Kenyan owned; and two-thirds of them were set up more than a decade ago. Most of the participating enterprises were in real estate, leisure, manu-
facturing, transport and travel, energy, and ICT sectors. The number of small rms taking to technology tools such as internet connection, ERP solutions, customer feedback as well as digital accounting and ling applications grew to 75 per cent this year. 99 per cent of businesses indicated that the impact of the accounting software applications on the business was positive. Last year, Atlas Builders and Plumbers, an engineering rm on Nairobis lower Kirinyaga Road, was crowned the winner of the 2012 edition of the annual Top 100 survey. The companys director, Dr Harish Bhanderi, said beating more than 200 participants came as a major surprise; as it was the rms rst entry in the competition. hdavid@ke.nationmedia.com
ECONOMY & POLITICS

NEWS I REVIEWS I ANALYSIS
CDF allocations favou emote zones

FUNDING Mandera South top recipient at Sh124m
while Lamu East receives least amount of Sh62m

BY EDWIN MUTAI
Top Ten Highest and Lowest CDF Funded Constituencies

Highest Mandera South Turkana West Kinango Magarini Mandera North Mandera West Makueni Banissa Turkana North Lafey Ksh million 124.8 116 110 102.3 101.9 99.2 98.6 98.5 97.3 97 Lowest Lamu East Embakasi West Makadar Embakasi Central Embakasi East Starehe Kisumu Central Ksh million 60.2 61 61.7 61.7 62.4 62.6 63.1
Tanspotes aise concens ove insecuity

BY GITONGA MARETE
understated by Sh1.08 billion during Poverty stricken far ung rural constitu- the rationalization of the 2013/14 scal encies in former North Eastern, Eastern, estimates would be reinstated in the Coast and Rift Valley provinces will take supplementary budget which is being the lions share of the Sh23.06 billion prepared. According to the distribution constituency development fund (CDF) schedule, each of the 290 constituencies allocations while majority of those in will receive Sh4.48 billion for the houstowns will get the least. ing project. Mandera South, Turkana West, KiShe said out of the net allocation of nango, Magarini and Mandera North Sh21.76 billion, the CDF board and secwill receive more than Sh100 million retariat will spend Sh1.09 billion or ve while Lamu East, Embakasi per cent, standing emergenWest, Makadara, Embakasi cy reserve would constitute Central and Embakasi East Sh1.03 billion, equal budgI uge MPs are among the least funded et allocation Sh14.73 billion constituencies, each receivand poverty index would be to now move ing less than Sh62 million. with speed to Sh4.91 billion. Mandera South will get CDF board chief execuconstitute wad tive ocer Yusuf Mbuno Sh124 million while the conpanels that will said the tabling of the alstituency that will receive the least amount of money identify pojects location schedule would pave the way for approval Lamu East has been alfo funding of projects for funding. located Sh60.2 million. YUSUF MBUNO, CHIEF We are in discussions A new CDF allocation EXECUTIVE, CDF BOARD formula presented to the with the Treasury to release national assembly by the the rst tranche of the CDF Devolution and Planning Cabinet Sec- allocation which had been delayed due retary Ann Waiguru shows that of the to lack of disbursement schedule, he total allocation of Sh23.06 billion that told the Public Investment Committee the Treasury allocated for the 2013/14 yesterday. I urge MPs to now move with CDF, Sh1.3 billion will go towards build- speed to constitute ward panels that will ing of the prefabricated sta houses for identify projects for funding over the next two years and forward the same nurses. The money meant for the housing to us for nancing. Mr Mbuno appeared before the project will be divided equally among the 290 constituencies. However, Ms House team to present the boards book Waiguru said the amount, which was of accounts from 2006 to date.
CDF Board chief executive Yusuf Mbuno when he met MPs yesterday. DIANA NGILA
He said that the money would only be released to constituencies after the projects are approved by the board. We know that the Treasury will be releasing the tranche for the rst quarter of this year any time soon, he said. We are currently releasing the backlog of funds for the last nancial year which have been tied to constituencies on demand basis. According to the disbursement schedule for the current nancial year, all the 290 constituencies will share Sh14.73 billion equally while Sh4.91 billion will be allocated according to the constituency poverty index. The least 10 constituencies in terms of allocation are Lamu East, Embakasi West, Makadara, Embakasi Central, Embakasi East, Starehe, Kisumu Central, Nakuru Town West, Langata, Nyeri Town, Kandara, Gatanga and Kajiado Central. The top 10 constituencies in terms of allocation are Mandera North, Turkana West, Kinango, Magarini, Mandera North, Mandera West, Makueni, Banissa, Turkana North and Lafey. Ms Waiguru said that Sh20.67 bil-
Nakuru 63.1 Town West Langata Nyeri Town 63.1 63.1
SOURCE;CRITERIA FOR SHARING CDF AMONG CONSTITUENCIES AS PER CDF ACT 2013
lion was distributed to constituencies based on various parameters including population and poverty index. According to the CDF Act 2013 and the amendments done by the National Assembly recently, ve per cent of the total allocation to the fund would be set aside as expenditure for running the board, ve per cent for emergencies that may occur within the constituency, 75 of the balance be divided equally among all constituencies and 25 per cent be allocated according to the constituency poverty index. emutai@ke.nationmedia.com
Transporters have raised concerns over theft of trucks and trailers along the Northern Corridor, claiming that at least ve vehicles have been stolen over the past one month. The trucks were stolen between September and October, but were later abandoned with their trailers missing, the Kenya Transporters Association (KTA) acting executive ocer Willington Kiverenge said yesterday. We are concerned about the incidents that have increased over the past few months. The robbers are normally armed and they confront the drivers, forcing them to drive into the bushes or other routes, he said, adding that truckers were incurring huge losses as cargo is also stolen. According to manufacturers of trailers, the cost of assembling a veaxle unit ranges between Sh2 million and Sh3 million depending on design and specications. The association has written to Inspector General of Police David Kimaiyo, asking him to address the rising insecurity along the route. The incidents occur at Mazeras climbing lane, between Mtito Andei and Machakos, Salgaa and Molo areas, the letter said in part. The Northern Corridor links landlocked countriesUganda, Rwanda, DRC and Burundiwith Mombasa port.
Kenyan wokes dont mind putting in exta hous, suvey says

BY MUGAMBI MUTEGI
More Kenyan workers are willing to put in extra hours at the expense of having a healthy social life, a new report on employee satisfaction says. Deloittes 2013 Best Company to Work For Survey found that employees dont attach as much premium on remuneration as is widely perceived but are mostly inuenced by job satisfaction and the quality of facilitation work. This view contrasts sharply with what many employers believe, as companies, for the second year running, selected remuneration as the most important element to attract and retain the top cream of employees. Professionals in Kenya are voluntarily willing to work more hours than the stipulated 8am to 5pm, said Kim-
Family Bank head of HR Margaret Mburu (left) receives a certicate from Deloittes Kimani Njoroge after the bank was named winner in the nance services category in the Best Company to Work for 2013 survey at a ceremony in Nairobi yesterday. SALATON NJAU ani Njoroge, Deloittes human capital partner. The survey showed that unlike employees working abroad, Kenyans are willing to sacrice time with family and friends to work a bit more. Employers
also scored work-life balance as the least important value. Those polled were asked questions tailored around 10 factors that employees use to select which company to work for. Operational eectiveness and job satisfaction emerged rst and second respectively, good relations with ones manager or supervisor (third), condence in your employer (fourth) while inclusion in company aairs was fth. In sixth place was performance and recognition, ethics and integrity within the rm (seventh), remuneration (eighth), prospects of career development (ninth) with work-life balance coming in last. The survey, the second carried out by the rm, set out to identify the best com-
panies to work for in Kenya. Deloitte interviewed over 5,000 employees from 16 companies, three more than 2012s number. Companies such as Kenya Commercial Bank, East African Breweries Limited (EABL), Old Mutual Kenya and took part in the survey. Others were Kenya Commercial Bank and UAP insurance. Craft Silicon emerged the winner this year, Procter & Gamble (P&G) second while Kenya Women Finance Trust came in third. P &G was also awarded for being the best company to work for in the manufacturing industry while Family Bank scooped the title in the nancial services sector. Last year, EABL emerged top, KWFT second while Nation Media Group was third.
ECONOMY & POLITICS
New tax tems fo local bee ms unfiendly, says MP

BY EDWIN MUTAI
An MP wants a legal notice that grants manufacturers of alcoholic drinks from locally produced sorghum, millet and cassava a 50 per cent tax remission revoked. Kikuyu MP Antony Ichungwa has petitioned the Committee on Delegated Legislation to revoke Legal Notice 103
of 2013 that took eect on October 1, saying it favours multinationals against local brewers. I see these regulations as totally unacceptable and designed to help multinational companies make prots, said Mr Ichungwah in a letter to committee chairman William Cheptumo. Mr Ichungwah said the remission would encourage the production of
cheap alcoholic drinks and abet alcoholism. The remission was reduced from 100 per cent in the June Budget, making the beverages less aordable. Under the regulations, manufacturers who have been in business for three years and accrue excise duty of at least Sh10 million can apply for the remission on beer whose content, excluding sugars, is 75 per cent sorghum, millet
or cassava grown in Kenya. The beer has to be packed in a container of at least 30 litres and sell the contents at Sh150 per litre at most. Who is able to produce a monthly minimum yield of excise duty of Sh10 million? Is this not locking out competition from small time manufacturers? he asked. Mr Ichungwah said multinationals
who lobbied for the tax remission to be removed would make a prot of up to Sh35 per litre of alcoholic beverages. Under the Customs and Excise Act, whose sections were amended through the Finance Act, 2013, alcoholic beverages that are fermented, stout or porter, other beer made from malt, cider and opaque beer attracts duty of Sh70 per litre or 50 per cent.
State is set to name school laptop supplie

TENDER Firm to supply schools
will now be announced next week

The government has picked 150 trainers, most of them secThe supplier of 1.3 million lapondary school teachers, to tops to Standard One pupils will show their primary school colbe known next week after the leagues how to use the laptops government said it had resolved in schools. the challenges on pricing. We do not want to disrupt the teaching calendar and also Education principal secretary Belio Kipsang said the rm the examination dates. We will to supply the machines would make sure we do the training in now be announced early in the local stations where the trainees week. will be able to teach and attend training The governat the same time, ment is committed to seeing this said Dr Kipsang We shall project succeed and who spoke when he announce the we shall announce opened the training winning bidde of the teachers yesthe winning bidder either on Monday eithe on Monday terday at the Kenya Institute of Curricuor Tuesday, said o Tuesday lum Development. Dr Kipsang. The group will be Nine rms bid BELIO KISPSANG, distributed across for the lucrative the country to train tender, with one the 60,000 teachers who will be vendor placing a double bid handling the laptop subjects. in a process that saw the lowest bidder quote Sh28.7 billion The overall project budget is Sh17.5 billion, which includes which was more than three infrastructure, security, content times the budget. HP Commercial, the lowest and training. According to the bidder, quoted Sh28.7 billion, ministrys budget, Sh9.8 billion has been set aside for buying with a unit price of Sh20, 639 . Chinese company Huawei PTE the laptops, Sh800 million for Ltd, the highest bidder, quoted training, Sh500 million for digSh60.5 billion. ital content and Sh5.8 billion for setting up computer laboraOthers are Samsung Electories in 10 primary schools in tronics (Sh39.1 billion), Symphony Technologies (Sh38 each of the countrys 290 constituencies. billion), Haier Technologies The government has identi(Sh34 billion), ZTE Corporaed primary schools that will tion (Sh33 billion) and Telcom pioneer the ambitious laptopKenya (Sh32 billion).Mastec for-schools project which is a EA Ltd placed two bids quoting Sh32.6 billion in one and Jubilee government agship Sh31.3 billion in another while project. Shen Zhen Auto Digital quoted Sh30.3 billion. mokuttah@ke.nationmedia.com
BY OKUTTAH MARK
ECONOMY & POLITICS
Matatu ownes challenge PSV ules

TRANSPORT Lobby
says cashless fares system should be treated as a pilot

BY NEVILLE OTUKI
and that of spare parts. We will nd ways of ensuring service users are not exploited, he said. The State, he said, should adjust the recommended speed limit for PSVs from 80 to 100kph.
Cance goups push fo tax cut on dug impots

BY SANDRA CHAO
Restore order
During the meeting, the Kenya Roads Board gave NTSA Sh10 million for funding road safety activities. Public passenger transportation has been chaotic, defying proposals to rene the culture to no avail. However, it was only the socalled Michuki rules introduced by the then Transport minister John Michuki that restored order in the sub-sector. Eyes are on the new NTSA to see whether it would create order. Apart from the rules, the authority has said it will register makers of vehicle bodies to monitor standards. There is a team that is working on the regulation, NTSA chairman Lee Kinyanjui said without giving details. Mr Kamau pledged to set aside Sh10 million every year to award PSV operators who champion road safety and obey the rules. notuki@ke.nationmedia.com
Public service vehicle operators want draft transport rules released two weeks ago reviewed before enforcement. During a stakeholders meeting yesterday the Matatu Owners Association (MOA) said cashless fares should be implemented in phases with Nairobi as a launch pad as opposed to a countrywide rollout proposed by the National Transport and Safety Authority. We want it started in Nairobi as a pilot project to see whether we can replicate it in other parts, MOA chairman Simon Kimutai said yesterday in Nairobi. The lobby issued the demands on the day the Transport secretary Michael Kamau said the draft would be reviewed in the next two weeks ahead of a meeting with PSV saccos for nal discussions.
Public service vehicles in Nairobi streets: The Matatu Owners Association says the new rules should be rolled out phases. FILE
The rollout could be as early as December this year, Mr Kamau said. In the regulations, PSV operators are required to implement a cashless payment system for all fares from next July. The association also asked for a one-year window to enable PSV operators to set up infrastructure including oces attached with eet management system to keep track of vehicles speed and location. Under the new guidelines it will be mandatory for operators, either a sacco or company to employ drivers, inspectors, mechanics and other personnel on permanent terms for each route. PSVs will also be required to design fare tables showing charges for dierent times of the day. MOA, however, says using a fare table would be dicult since a host of factors inuence the payments such as impassable roads during the rainy seasons. Mr Kimutai said particular fares would hurt the industry on the backdrop of rising costs of maintenance
Cancer associations want Parliament to exempt imported drugs from the rail development levy. Henzo Kenya, a support group for leukaemia and stomach cancer patients and survivors, said the levy on donated drugs aects access to the life-sustaining medicines. Elo Mapelu, the organisations vice chairman urged Parliament to amend the law to save donors from extra costs of sending the drugs to needy patients. Kenya has been receiving the drug donations since 2005. We get drug donations every quarter given to about 400 patients through a programme at the Nairobi Hospital and any slight delay in delivery can cost a persons life, he said. Glivec, one of the cancer drugs, is the most expensive and a daily dosage costs Sh10,000. Kenya Revenue Authority recently held the donated drugs worth Sh350 million until Sh5.6 million tax was paid by the Health ministry. We need to nd a permanent solution since we expect the next consignment to be coming in by end of the month. It would be devastating to the patients if it is also delayed, Mr Mapelu said.
Review of pison sentences to save taxpayes Sh220m

BY GALGALLO FAYO
AUTOMATION
IN EAST AFRICA
The demand for improved productivity and efficiency in East Africa has led to automation in different industries. The EastAfrican will on 19th October publish a feature focusing on the role of Industrial Automation in increasing productivity and efficiency in East Africa. Among the topics to be highlighted will be: Industrial automation design solutions. Elevators/escalators installation and maintenance. CCTV security systems and lighting. To advertise call Mercy on (+254) 0734 960644 or email mbarasa @ke.nationmedia.com.
INDUSTRIAL
The Judiciary estimates to save Sh223.5 million a year in prison expenses when all judges hear and determine criminal appeals from next week. They will also review prison sentences in a service running for a complete week across the country. From Monday, the Judiciary will start a review of about 3,500 sentences and place them under community service with huge savings for the taxpayer on feeding budget. Apart from the expenses, the department says in a statement that the step during the Service Week will be the beginning of many initiatives to enhance access to justice by citizens. High Court, Industrial Court, Environment and Land judges will be sitting exclusively for the reassessment. During the period, a total of 1,528 appeals will be heard and judgments delivered in the 20 High Court stations. The judges will dedicate a day to review the 3,500 prison sentences.
Service Week
The service week starts on Monday. LSK, DPP, Probation, and Prisons will also participate.
the exercise while the Prisons department is charged with ensuring that the prisoners are brought to court. The Probation department and the Law Society of Kenya will prepare reports and oer pro bono services to appellants who dont aord legal representation respectively.
Five years
It costs the taxpayer Sh175 to feed a prisoner in custody. This translates to a sum of Sh223,562,500 for feeding 3,500 prisoners for a year. This colossal amount will be saved if 3,500 are placed on community services during the week, the statement said. During the service week, it is anticipated that 1,500 appeals will be heard and determined within two weeks. This will be almost a third of the total number of appeals determined last year. There will thus be a signicant increase in the number of appeals concluded this year, said Judiciary. Many accused persons nish serving their sentences before the hearing of their appeals while others have been waiting for the appeals for long, some taking up to ve years, says the Judiciary. Last year, the High Court concluded 3,944 leaving 10,289 pending appeals while 3,325 new ones were led.
Pro bono services

It is a multi-agency exercise under the banner of National Council of Administration of Justice and will involve all the agencies in the criminal justice chain. Judiciary said the oce of director public prosecutions will release State counsel for
10
CORPORATE NEWS
Top Kenol ownes tansfe Sh1.2bn shaes in months

OWNERSHIP Six of top 10 shareholders take
KenolKobil ownership (%)

The major owners traded 157.8 mn shares in the ve months to July
Feb-13 Jul-13 Wells Petroleum Holding Petro Holdings Ltd Higheld Ltd Energy Resources Capital CFC Stanbic A/c NR13302 Stanchart A/c 9894 SCB A/C Pan Africa Stanchart A/c NR9053 Chery Holdings Stanchart A/c NR 11663 Stanchart A/c 9054 Others TOTAL 24.91 17.34 12.46 5.99 2.89 0.7 1.15 1.51 7.89 0.4 0.82 24 100 24.91 17.34 12.46 5.99 3.06 2.56 2.55 1.51 1.37 0.87 0.52 26.9 100
Kenya Powe stops dividend afte pot dop

BY VICTOR JUMA
action weeks after collapse of Puma sale deal

BY VICTOR JUMA
Top owners of KenolKobil have transferred shares worth Sh1.2 billion within the ve months to July and weeks after the oil marketer announced the collapse of plans to sell a majority stake to Swiss rm Puma Energy. Regulatory ling with the Capital Markets Authority shows that six of the oil marketers top 10 shareholders have traded 157.8 million shares in the ve months to July. This has seen the investment vehicle Chery Holding drop from the fourth largest shareholder to the sixth, after transferring 95.8 million shares currently worth Sh766.8 million that left it with a 1.37 per cent stake from 7.89 per cent in February. A foreign investor under a StanChart nominee account ceded 4.4 million shares in the period, marking the highest level of trading among the top shareholders since 2008 when the oil rm was rebranded with the merger of Kenol with Kobil Petroleum (Kobil). Other top shareholders whose identities have been masked under nominee accounts acquired a combined 57.4 million shares against sales of 100.3 mil-
lion among the key investors cutting the ownership of the top 10 owners. Individuals behind the deals are unknown given that KenolKobil is one of the most secretive rms on the Nairobi Securities Exchange. The company is, however, associated with former powerful Cabinet minister Nicholas Biwott and over 70 per cent of its ownership is through nominee accounts, some registered abroad. The Business Daily could not establish whether the stock transactions were a sale of shares to third parties or transfer among the top shareholders who are said be linked to each other. The share dealings have changed the oil marketers shareholding structure as the rm put on hold its plan to sell the company to a strategic investor pending return to protability, end of costly legal disputes and sale of noncore assets. The dealer has shed half of its value over the past year to the current price of Sh8, making it worst performing stock on the bourse over the period. Expectations of the buyout by Puma had sparked a rally in share price. KenolKobil majority owners have
KenolKobil posted a net prot of Sh147 million for half-year ended June. FILE
used lawyers as proxy shareholders, with some even going to the extent of ling their names with a US custodian bank, State Street Bank. Records of shareholders behind the companies that own KenolKobil, however, provide strong pointers of its ownership. Desterio Oyatsi, a prominent Nairobi-based advocate who has represented Mr Biwott in many court battles, is listed as a shareholder in at least three of the companies: Petroholdings with a 17.34 per cent stake, Chery Holding (7.89 per cent) and Higheld with a 12.46 per cent stake in the oil rm. Mr Oyatsi, who is a partner at Shapley Barret and Company Advocates and a non-executive director at KenolKobil, said he holds the oil marketers shares on behalf of his clients. At the board level, Mr Biwotts son-in-law Per Nils Jacobsson, who has been a director since 2007 resigned last month. Kenol is targeting
SOURCE: CMA FILLINGS
to sell a signicant stake in two to three years when the company is expected to be protable and it will invite multiple bids. The oil marketer has maintained that it is looking for a buyer to inject cash and oer strategic input since the collapse of the Puma deal in March. The companys loss of Sh6.2 billion for the year to December reversed the net prot of Sh3.2 billion it posted in 2011 as high operating expenses, lower sales and foreign exchange losses took toll. It returned to protability in the half year ended June posting a net prot of Sh147 million compared to a loss of Sh3.9 billion in the similar period last year. vjuma@ke.nationmedia.com
Kenya Power has announced a 5.7 per cent drop in net prot for the year to June and failed to declare a dividend for the rst time since 2004. The electricity distributor said net prot for the period to June stood at Sh4.3 billion compared to Sh4.6 billion a year earlier. It last declared a dividend of Sh0.3 per share for the year ended June 2012 and failure to pay this year deals a blow to the rms investors who have seen their stock lose a quarter of its value over the past six months to the current Sh14.55. The reduced protability was largely driven by high nance costs that doubled to Sh2.4 billion from Sh1.2 billion. Its short term borrowings jumped 26.5 per cent to Sh39.6 billion, driving up the companys interest burden. The companys sales grew six per cent to Sh47.9 billion in the period compared to Sh45 billion the year before and it was looking to raise taris from March, but the move was stopped by the government which owns half of the rm. The company made its proposal for revised electricity taris to the Energy Regulatory Commission and there are indications that the matter will be concluded soon, the rm said. The board is optimistic that this will result in an appropriate tari structure that will take into consideration both the need for aordable electricity to customers as well as the companys nancial viability.
Thid executive at NIC Bank steps down in ve months

BY GERALD ANDAE
A third executive of NIC Bank has quit over the past ve months, paving the way for the managing director, John Gachora to hire a new team to guide the mid-tier lender. James Wanyika is set to quit as the director of credit risk following in the footsteps of former managing director James Macharia, now the Health secretary, and Joseph Mutugu who left as nance director in July after failing to agree on strategy with the bank. I have worked with this bank for 12 years and its normal retirement after attaining
the age of 60, said Mr Wanyika when reached by the Business Daily yesterday. The executive shift means that NIC will be searching for heads of nance and risk divisions after Mr Gachora on September 16 replaced Mr Macharia as its new managing director. This will oer the new chief executive an opportunity to inuence the appointments in a bank whose executive suite has witnessed little changes over the past ve years unlike other top lenders. Mr Gachora, 44, joined Barclays Africa from South Africas Absa Africa where he
The new CEO will help deepen NIC Banks nancial supermarket model, which includes trading shares, selling insurance products .FILE was appointed CEO in 2010 and served in the global nancial services rm Credit Suisse for a decade. Mr Macharia was sworn in as Health secretary on May 15 and had led NIC Bank since 2005. Executive turnover has been minimal over the past ve years, save for this year. In January, it hired Edgar Kalya as retail director from Barclays Bank
of Kenya where he was acting consumer banking director. Its board, which is closely watched by the family of the late Philip Ndegwa, a former Central Bank of Kenya governor, has also seen little changes on its composition in recent years with the bulk of directors having served between 12 years and 20 years. The Ndegwas entered NIC Bank in 1996 after they acquired a 20 per cent stake from Barclays Bank of Kenya through First Chartered Securities an investment rm founded in 1974 by the family patriarch Philip. They currently own a quarter of the bank and the son of
the former governor, James Ndegwa, chairs its board. Mr Gachoras experience in mainstream banking and investment banking is expected to help him deepen NIC Banks nancial supermarket model, which includes trading shares, selling insurance products and oering loans. He is also expected to step up expansion into foreign markets, especially within East Africa. The bank has subsidiaries in Tanzania and Uganda. NIC prot rose 20 per cent to Sh1.86 billion in the half year to June and its share at the Nairobi bourse has gained 10.2 per cent to the current Sh59.
11
CORPORATE NEWS
Time Wane, Kenafic in catoon ow

COPYRIGHT US company wants Kenyas sweet
maker to stop using Ben 10 brand on its package

BY GALGALLO FAYO
New York-listed Time Warner has sued a local sweets manufacturer over the use of its cartoon trademarks in a legal battle that will test the application of global copyright laws in Kenya. The rm through its TV unit, The Cartoon Network Inc, wants Kenafric Industries Limited to be stopped from wrapping its sweets with packages branded BEN 10 which is a agship cartoon channel of the US giant. Cartoon Network alleges that the association of the chewing gum with its brands can damage the reputation of BEN 10 and goods branded with the label toys, video games and clothing valued at Sh275 billion. The defendants (Kenafric) use of the name BEN 10 amounts to trade mark infringement of BEN 10 Trademarks, says Cartoon Networks vice president Louise Sams in documents led at the Milimani Commercial Court. The unauthorised reproduction or adaptation or publication or broadcast or sale or distribution or possession or importation of the
oending chewing gum constitutes copyright infringement. Mr Sams in a court document claims that both Kenafric and Cartoon Network use the same distribution channels, which it says could easily lead to the association of the Kenafric chewing gums with its cartoons. He added that the association could damage its brands, which the US rm reckons has been developed over long period through promotion and advertisements. BEN 10 is a popular brand globally and in Kenya, and some of its cartoons feature in the Saturday Nation newspapers and local TV channels. Cartoon Network claims that Kenafric had been exploiting its popularity to grow its business and make a fortune without the permission of the US rm. Kenafric Industries Limited is yet to respond to Cartoon Networks claims. Turner operates TV properties including CNN, TNT, TBS and Cartoon Network. Cartoon Network is relying on Madrid Agreement on International registration of Trade Mark adopted in
KenafricIndustries workers at the rms Baba Dogo plant in Nairobi. AFP

April 1891 and the International registration of Trade Marks adopted in Madrid in June 1989. The Madrid Protocol provides that once a trademark is registered in a country which is signatory to Madrid Protocol, it becomes protected in all other countries which have adopted the treaty. The company, therefore, says having registered its BEN 10 as a trademark in United States, it becomes a protected in Kenya too. The case is the latest in the series of legal suit led by known brands ghting over trademark, patent and intellectual rights. Keroche Breweries last month moved to court alleging that Tona Millers had infringed on its trademark by
launching and packaging its product in a similar bottle and name. Keroche claims Tona Millers manufactures Viara Ice ready to drink, which is almost similar to its alcoholic beverage Viena Ice. Keroche wants the rm stopped from manufacturing, advertising, displaying or selling the product. Safaricom has faced multiple suits over copyright infringement among them the one led by micro lender Faulu Kenya which is seeking the mobile company stopped from trading on MShwari platform and a doctor, Dedan Warui, who accuses the mobile operator of infringing on his copyright.
Co-op Bank eyes mining deals in South Sudan

BY NEVILLE OTUKI
Stop distribution
Cartoon Network learnt of the alleged infringement in October 2012 and in January this year it sent a letter to Kenafric demanding it to stop distribution of the chewing gums in a package branded similar to its cartoons. However, the defendant has denied trademark infringement, copyright infringement and the passing o of its products as the products of the plainti (Cartoon Network), says Mr Sams. gfayo@ke.nationmedia.com
Co-operative Bank will next week open its rst foreign subsidiary in South Sudan as lenders race to reduce reliance on the Kenyan market. Mr Gideon Muriuki, the CEO, yesterday said the bank opened the rst branch in Juba on September 17 and will spread its reach to 10 states in Africas newest country. South Sudan is one of the most lucrative markets in the East African region where Kenyan banks target to take advantage of low penetration of nancial services. Central Bank of Kenya data show that the 11 banks with subsidiaries in the region had a combined pre-tax prot of Sh5.1 billion last year, up from Sh2.3 billion in 2011. Co-op Bank is set to replicate in South Sudan its model of partnerships with co-operative societies that has given it access to Kenyas 12,000 saccos and their 10 million customers. The bank has taken a 51 per cent stake in a joint venture with the government of South Sudan, which is expected to transfer the 49 per cent stake to the co-operatives after three years.
12
COUNTY BUSINESS
TENDER NOTICE
TENDER NO. KEPHIS/T/2/2013-14: Request for proposal for development and maintenance of KEPHIS website. TENDER NO. KEPHIS/T/3/2013-14: Consultancy for design and supervision of construction project for Kisumu office block Tender documents detailing the requirements may be obtained from the Supplies Office situated at the Head Office, Karen, Oloolua Ridge off Ngong/Karen Road on normal working days from 9th October 2013 between9.00 a.m. and 4.30 p.m. upon payment of a non-refundable fee of KShs.1, 000 or equivalent in US Dollars for each tender. Payments shall be made by bankers cheque payable to Managing Director, KEPHIS or be deposited in any branch of Kenya Commercial Bank Account No. 1108285430.
The documents can also be viewed from the KEPHIS website:
Mombasa in deal with IBM fo automated evenue collection

TECHNOLOGY
Company to fully fund project that is expected to plug money leaks

BY EUNICE MACHUHI MOMBASA
www.kephis.org
REPUBLIC OF KENYA
MINISTRY OF AGRICULTURE LIVESTOCK AND FISHERIES EXPRESSION OF INTEREST (EOI) FOR THE REDESIGNING,
DEVELOPMENT AND HOSTING OFFICIAL WEB-SITE FOR MINISTRY OF AGRICULTUERE, LIVESTOCK & FISHERIES WEBSITE
The Ministry of Agriculture, Livestock and Fisheries has currently three websites with the URLs www.kilimo.,go.ke, www.livestock.go.ke, and www.fisheries.go.ke. The Ministry would wish to align these websites to its current goals and vision, and redesign them into one seamless website with additional dynamic and interactive features. 2.0 Objectives The objectives set out for this project will be: To create an online platform to allow maximum traffic to the ministry website To create and design content and content presentation mechanisms that are both appealing and informative to the public To develop a website using up to date technology to ensure maximum security, uptime and responsiveness. To advise and develop online presence ideas for the ministry for the maximum use of the website to relay information and use it as primary means of communication Provide up to date information on all projects, events etc Head Supply Chain for: PRINCIPAL SECRETARY See detailed information in the Daily Nation for 9th October 2013
The Mombasa County Government is planning to step up revenue collection by phasing out the manual collection system to pave the way for a fully automated one. This was after the county government struck a deal with a multinational computer technology and IT consulting corporation to computerise the process. The deal was reached following a successful meeting between the Mombasa Governor Hassan Joho and ocials of the International Business Machines (IBM) that was held in Morocco last week. IBM which is the worlds largest computer companies and systems integrators will fully fund the project that is expected to seal leaks that have created huge losses in the past. The governors economic advisor Hamisi Mwaguya said that plans were in top gear to introduce the electronic revenue collection system in the next three months since IBM had agreed to team up with the county in this eort. Mr Mwaguya told the media that the IBM ocials are expected to visit Mombasa early next year where they will start the automation process targeting payments on single business permits and land rates. This will no doubt create a transpar-
Traders at Kongowea market in Mombasa. Planned automation of revenue collection targets payments on single business permits and land rates. LABAN WALLOGA.
ent data base because it will be possible to track payments real- time, improve efciency, reduce cash transactions as well as ensure there are no leakages in these payments, he said yesterday. He added: We will be holding talks with the ocials between now and next year so that it will be all systems go when they arrive. Details of how much the multinational will spend and the exact commencement date however remain scanty. Other African cities that have embraced the concept include Kampala (Uganda), Accra (Ghana) and Rabat and Casablanca (Morocco). Current statistics for revenue collection in the county stands at an estimated Sh6 million per day but the gure is expected to double when the digital system is in place. Mr Mwaguya said once installed and test runs conducted on the payment of land rates and single business permits, the service will be expanded to other sectors which include but not limited to rents and payments on adverts and bill boards. At the same time, Mr Mwaguya disclosed that the county will also partner with Moroccos Casablanca and Rabat cities to boost trade and tourism. The three are all port cities and have enormous inuence in the export and import of goods to various world destinations as well as attracting tourism by their peculiar nature. Morocco is keen on trading with East Africa and Mombasa is one of the main cities will pay a big role in exportation and importation of goods and on the other hand, Morocco is an entry point to other Northern countries and the Europe continent, he said. emachuhi@ke.nationmedia.com
Cout halts balloon sevice in the Maa

BY JAMES KARIUKI NAROK
The High Court on Wednesday ordered a balloon service operator to halt operations within the privately managed 30,000 hectare Mara North Conservancy until a suit led in court is heard and determined. Environment and Land Court judge Lucy Waithaka said the ban against Transworld Safaris would remain for a month and that the applicant, Mara North Conservancy, will have to deposit Sh3 million in court within the next three days failure to which the orders will naturally lapse. The money, to be deposited in cash or bank guarantee, is meant to mitigate losses by Transworld Safaris in case the court rules in their favour. The plaintis claim the hot air balloons were a risk to lives and a consistent
noise pollutant which had made tourists to protest. Justice Waithaka, however, allowed Transworld Safaris to appeal against her decision and to le a defence within seven days and a further seven days for the Mara North Conservancy to respond to the issues raised. Wholly owned, managed and operated by Kenyans, Transworld is one of the oldest safari companies in Africa. It operates and owns a large eet of custom-built safari minibuses, 4 wheel drive vehicles and hot air balloons. It also operates a eet of seven hot air balloon safaris in the Mara. Collins Oyomba, the lawyer for Mara North Conservancy, said his client had entered into long-term lease agreements with 788 individual land owners which enabled them to consolidate over 30,000 hectares of pristine land with eye catch-
ing landscape and rich wildlife as well as ora and fauna. This is the rst time individual farmers are getting cash directly into their pockets unlike before when the parcels were under communal land trust and managed by a few individuals. We feel Transworld could be free to provide ying services to their clients from any other parcel within the area which they are at liberty to choose, said Mr Oyomba. The new court order ends another order by a High Court judge that allowed Transworld Safaris to continue operations provided it paid Sh 4,400($50) per person at the landing point within the conservancy. Justice Waithaka yesterday said the case would be mentioned on November 6 when another suit over noise pollution and accident risk comes up for hearing.
13
IDEAS & DEBATE

OPINIONS I REVIEWS I ANALYSIS
FUNDRAISING Pulling together makes a lot of sense, but we have to focus on the social gains
Look at haambee spiit again fo apt lessons on sacice

In the moment of a great loss, he resorted to the action that has become what many would claim to be an African communal tradition but which has increasingly adopted a uniquely Kenyan perspective the harambee mentality. BY MARVIN SISSEY Harambee is a beautiful concept. On September 27, the Foreign Aairs The term admittedly had less than principal secretary Karanja Kibicho re- glorious beginnings. It was derived as a leased a curious internal memo. In it, he form of praise to a Hindu deity named directed all heads of missions and heads Ambee Mata. During the construction of directorates /divisions to contribute of the railway from Mombasa at the money to assist one of the ambassadors turn of the 20th century, the Indian who had been bereaved. railway linesmen carrying huge loads All ambassadors were requested of iron rails and sleeper blocks would (I use the word requested loosely) chant to their black colleagues helping to contribute a minimum of Sh5,000 them har, har ambee! (Praise praise while all other ocers were expected to Ambee ) when working. This was in to contribute a minimum of Sh 2,000. time adopted as slang into the local The terse memo set October 5 as the Swahili dialect to mean, Let us all pull deadline for contributions. This was together Myth has it that the rst expected to be an internal president, Jomo Kenyatta document within foreign Death is did witness a railway line aairs circles. On reading team as it worked in cothe memo, one gets the a painful hesion and harmony. It feeling that it seems to be expeience represented a metaphor a standard procedure that whose eect does he wanted to reect: a naoccurs within the said oce for ocers to be whipped tion working together and not espect you communicating and sharinto helping a colleague in economic o ing its load. distress. powe standing Thus when he spoke at So, why did the memo the opening of Parliament raise eyebrows and leak? in the society Three reasons. One, the of the newly independent aected had lost her son in state on 13th December the Westgate sag. Secondly, 1963, Kenyas rst Prime and even the bigger reason Minister and President was that the deceased also happened Jomo Kenyatta called on the people to to be the Presidents nephew. Third, adopt the spirit of Harambee. Kenyatta used Harambee as a call to it would help with some internal communications lessons on voluntarily action, but it adopted a life of its own, turning itself into a movement that was contributions. Death is a painful experience whose strongly advocated further and strengtheect does not respect your economic ened by the countrys second President, or power standing in the society. In one Daniel Moi. It is now often used as a way, we could term it as the greatest synonym for the term fund raising and equaliser. The sadness aicted by the is even imprinted on the Kenyan Coat terrifying hand of demise is neither a of Arms besides being adopted as a national philosophy or motto. respecter of class nor social standing. Harambee, as a national philosoWhen one loses a loved one, we are all expected to stand in solidarity with phy, has attracted loads of studies. In them throughout their solemn mo- his 1989 paper, Culture in Development, ments, comfort them and oer them a Joshua Akonga listed a few principles that should guide harambee. Firstly, a shoulder to lean on. To this extent, I understand where harambee should have a botom-up apthe Principal Secretary was coming proach to development. Individuals at from. His intentions were nothing the community and grassroots level were expected to participate actively but noble.
Other Voices
Hamid Karzai Afghan President
Sandy Gall (Telegraph) In an interview with the BBC, six months before leaving ofce, President Hamid Karzai has put the boot into the British and the West in terms as extreme as any he has used before. On the security front, he claimed, the entire Nato exercise was one that caused Afghanistan a lot of suffering, a lot of loss of life, and no gains because the country is not secure. He even made the farfetched claim that Nato is colluding with the Taliban.
Benjamin Netanyahu Israeli PM
Harambee philosophy has served Kenya well, but time is ripe to review its ideals and ask ourselves hard questions on relevance or missteps. FILE
in the initiation, planning and implementation of the local development projects. Secondly, participation was to be guided by the principle of collective good rather than individual gain. The end product of the harambee should benet the public rather than an individual. This tenet may seem to conict with initiatives such as raising of funds to meet hospital bills, pay college or university fees and bursary schemes but if looked at closely, it does not since a healthy, more educated populace is a benet to the whole community. In short, it is okay to conduct fundraising to cater to what may seem to personal initiatives but which in the end have a positive public eect. However, this is where the danger comes in; how do we ascertain only the deserving cases get attention? There is one base guiding parameter; I call it common sense. Before you conduct a fundraising, the following questions should all be answered positively. Firstly, the person who stands to gain should have explicitly or implicitly given an okay that they need nancial assistance. Now, the questions. One, do I really need whatever it is that I am fundraising for? Two, what is the urgency? Is it something that I can do without it for the time being? Three, is it something which with a little sacrice on my part I can aord it? A sacrice like taking a loan or sometimes simply, breaking my long-term savings?
Sam Okuonzi (New Vision) The 68th session of the United Nations General Assembly ended on October1, as its other meetings continued for a couple of weeks. The main debate ended on a heated address by Israels Prime Minister Benjamin Netanyahu. Piling pressure on Iran, Netanyahu said he did not believe the new President of Iran, Hassan Rouhani, who had submitted that Iran was developing nuclear energy for peaceful and civilian purposes.
Janet Yellen Fed nominee
Pastors Benz
Four, if it is an accident which is unexpected, is there a way I can mitigate such risk in future, say by taking the relevant insurance cover to protect me? Last expense insurance, medical insurance, personal accident insurance and such like covers; should I go ahead and call my broker now so that I can get the aordable solutions available in the market? Ill say no more. Neither will I oer my opinion on whether occasions like weddings or fundraising to buy the Pastors Mercedes Benz too qualify. Ill go back to my base parameter let us use our common sense. feedback@marvinsissey.com Twitter@marvinsissey
Daniel Indiviglio (Reuters) US President Barack Obamas pick to be the next Federal Reserve chair looks timed to calm the market. Janet Yellen appears set to get the nod on Oct. 8 to run the central bank. That will mark a safe, boring end to a wild nomination process. But a little certainty is what global investors need from a politically chaotic Washington. A debt ceiling deal remains elusive, but at least theres some predictability on Fed policy. Yellens appointment will hardly be a surprise. She has been the top candidate to replace current Chairman Ben Bernanke since Larry Summers withdrew.
14
EDITORIAL & OPINION
Published by the Nation Media Group, Kimathi Street, Nairobi
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Let Uwezo Fund taget maximum impact

want to delude ourselves that there are social channels for distributing the fund, they do not exist. Microlenders have a history of reaching the ground and we should try them as long as we keep their mark-up reasonable. They have proven themselves with the Youth Enterprise Fund where those who are worth the cash have stood out. However, we ask the MPs to also push for disbursing the loans through Saccos. This is because borrowers here need to put their seed money to be loaned money. As one of the MPs pointed out, each constituency is likely to get just Sh18 million if the grants are not ruled out. This is money that is just right for market retailers and kiosk people who have a good history of repayment. The minister should just admit campaigns are over and face reality. If people do not feel obligated, they are unlikely to put the money to good use. If the government opts the church way, the cash must go to aspiring or existing entrepreneurs and not charity cases. The worst injustice you can do to the taxpayer is to throw away good cash to unproductive causes. And while at it, we should agree that not everyone, however poor is t to be loaned cash.
arliament on Wednesday spent time probing Devolution and Planning minister Anne Waiguru on the viability of the Uwezo Fund, a kitty that is expected to boost enterprise and reduce poverty. On the face of it, using Sh6 billion for the task is a noble idea. The government is proposing to give 25 per cent of the amount as grants to poor areas. On top, of the cash that ultimately reaches the 290 constituencies, a fth will be disbursed as grants through religious and other social groupings. MPs are right to oppose the injection of the social element and grants, not because it is not welcome to help but because it is only prudent to put money where it has most impact. They are right when they say the tax money, initially intended for a presidential election rerun, should be loaned out. For one, it will mean that only people who have viable ideas, and not anyone who thinks that its free money to which they are entitled to, apply for the cash. In that way, the fund will be replenished and future borrowers, or the same people, can grow business wise through its funding. Again as much as we would
Jennifer! I have a new task for you... Make sure I get at least three Facebook friend requests by lunch time...
State facing tough choices in eney ow

facility it borrowed to nance construction of a captive power plant. Thus, even if the Indians leave, the government will have to face its creditors. Within the government, the most popular view is that the facility should be transformed into an oil terminal. It is not an easy option either. In the rst place, it will result in the loss of many jobs. Right now, the renery has a workforce of 280 employees. If you convert the renery into an oil terminal, you will have to send 40 per cent to the streets. With the huge crude vessels leaving the scene, to be replaced with too many small vessels bringing in nished products, the pressure on Mombasa port will be high indeed. Dealing with un-pumpable stocks owned by the oil companies will also pose a major challenge. By KPRLs estimates, $36 million will be required to purchase dead stocks from oil marketing companies and to convert current crude oil dead stock to petrol dead stock. The captive power plant into which $17.5 million has been pumped will be rendered useless. Neither is the governments idea of bringing in another joint venture investor to replace the Indians and willing to put in money upgrading the plant going to be an easy option. Several studies, including by Essar itself, have demonstrated that because of its age and technology, the renery cannot operate sustainably without massive government subsidies and other forms of support. It is an old hydro-skimming renery which is inecient and produces a lot of fuel oil which cannot be sold for more than the cost of the crude used to produce it. For it to break even, products have to be sold at a mark-up to international fuel prices. As a matter of fact, the only reason Essar agreed to the joint venture deal with the government were the concessions and sweeteners the government agreed under both the shareholder and government support agreements, which the parties signed from the onset of the relationship. For instance, under the government support agreement, the government committed to ensuring a minimum 1.6 million tonnes per year of throughput at the renery to keep it operational. When the renery, on the directive of the government, switched from a tolling model to a merchant model in July 2012, sales volumes plummeted especially after oil marketers started importing fuel from alternative sources. The choices for us are stark: whether we want to be a country which exports crude without value addition or build a greeneld renery. The estimate is that a greeneld will cost $5 billion and will take between seven to 10 years to complete.
JAINDI KISERO UNCERTAINTY
Involve public in fete

that the programmes would address. The next step would be to sieve through and leave only the most pressing items. The other parameter would be whether the projects are of county or national nature. A mix of the two would certainly be ideal bar the risk of being spread too thinly. Another would be sustainability of the legacy projects starting with nancing to management. It would be too much to expect the Kenya@50 team to have all this gured out. At best it can invite ideas from the public, put them through a selection panel and later to a vote. Deciding on legacy projects without public participation could end up exposing the secretariat to allegations of bias and imprudence, undermining support for the initiatives.
secretariat formed to organise the 50th anniversary of Kenyas independence has come up with an unprecedented idea on how to mark the occassion. It wants the Sh500 million earmarked for the fete spent on projects that would have a lasting impact on the society. That means no grand monuments, fewer parties and, hopefully, less wastage. Kenya@50 chairman Ali Wario already has some legacy projects in mind such as the rehabilitation of Mathari Mental Hospital and building a paediatric unit at the Kenyatta National Hospital. Opinion is bound to split on the type of projects that would t the bill of things that are really important to all Kenyans. That calls for a sound criteria on starting with the specic gaps
ven after Indian investors, Essar Holdings, leave the Kenya Petroleum Renery Limited (KPRL) as it now seems, it is not going to be a walk in the park for the government. The road ahead is going to be rough . Me thinks the government made a tactical blunder by taking the ght with the Indians to Parliament. The whole thing has created unnecessary uncertainty around the future of the company. The upshot is that the company remains exposed to litigation, seizure of assets by banks, contractors or service providers. Indeed , the prospect of the company being put under receivership in the near future is not a remote possibility any longer. Mark you, for the last 12 months, the renery has been suering a crippling problem of low product uptake, leading to inability to pay creditors on a timely basis. The company has no cash to pay creditors. Yet it is a matter of public record that KPRL is up to its neck with expensive loans- including a huge working capital facility of $70 million, and a $11 million
VIEWS FROM ABROAD

Countrys health is key
No issue is more sensitive, or even troublesome, than health in a developing country like Zambia . TIMES OF ZAMBIA So whenever health LUSAKAS personnel go on strike, this becomes a source of concern because peoples health is obviously at stake. This is even of much more concern because only those health workers engaged in Government-owned hospitals, clinics and other health centres go on strike. Yet these are places offering cheaper services, meaning that majority of Zambians who cannot afford to go to private clinics frequent these health facilities.
Opinions fom aound the wold

Is India story really over?
That India is an economic mess is known all over the world. What is not yet public is that the malaise was because of the wrong KASHMIR TIMES decisions which KASHMIR president Pranab Mukherejee took when he was Union nance minister from January 2009 to mid-2012 and also when nance minister P Chidambaram was heading the ministry nearly till the end of 2008 and before. Both of them are accountable. They should tell why they took the steps which disturbed the rhythm of progress. Because of lack of transparency only a handful of people know about the blunders the two committed.
Modern slavery in Europe

Human trafcking is the 21st centurys modern form of slavery, and it concerns the entire European Union. Trafcking in MOSCOW TIMES human beings is an MOSCOW extremely protable business for organised crime and can take different forms of exploitation; from sexual exploitation and illegal adoption to forced labour, domestic work, illegal trade in human organs and begging. The question to address is how to overcome this dramatic phenomenon and what measures to take to diminish the number of victims in the EU in general, but particularly in the Eastern Partnership countries.
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15
EDITORIAL & OPINION
Fo China, US debt ceiling is a pape tige

JOHN FOLEY ECONOMY
or China, the US debt ceiling is what Mao Zedong might have called a paper tiger: terrible to behold, but in reality not so scary. Provided Washington doesnt actually default on October 17, when the Treasury has warned it could run out of cash unless allowed to borrow more, Chinese concern looks needless, and even self-serving. Its understandable that the biggest holder of US debt is frustrated. China has a known $1.5 trillion of Treasury and US agency debt. Vice nance minister Zhu
Guangyao fretted publicly about the safety of the countrys investments on October 7. Even if the worst case non-payment is averted, a protracted standstill over the debt limit could cause a sell-o in American paper. China would feel the eect in several ways. First there would be a nancial impact, as the value of its existing bills falls. But it would be muted. China doesnt transparently adjust its holdings for uctuations in market prices, and can buy and hold, so what really matters is repayment and not market prices. The economic consequences might be worse. If rates rise be-
cause Washingtons lenders grow less condent, there could be a US recession. China still relies on healthy demand from American buyers of its goods, though its strategy of keeping its currency, the yuan, closely linked to the dollar offers some insulation. Strategically, Washingtons woes could be Beijings gain. Doubts about the dollars ability to remain a safe store of wealth could help China push its own currency as an alternative. China has set up $360 billion of currency swaps with trade partners to encourage them to use the yuan for trade. Anything that reduces the relative appeal of the dollar includ-
ing public admonitions from Chinese ocials ought to increase the marginal propensity to accept yuan instead. One day, if Chinas currency does become the global lingua franca, it may face problems much like those of the United States today. The exorbitant privilege of being able to borrow cheaply from countries eager to accumulate assets in reserve currency brings with it great pressure to run up debts. Perhaps the best way for Beijing to view the US debt ceiling is not as a crisis, but as a cautionary tale. The author is a Reuters Breakingviews columnist
Unstable global economic system being ignoed

DANIEL ALPERT FINANCE
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. Send via e-mail to bdfeedback@ke.nationmedia.com
Curb corruption in county governments

orruption is one of the largest obstacles to the countrys economic development and growth. It has adverse eects on our economic growth, inequality and poverty and on the allocation of public spending, be it on education, health and infrastructure among others. Such abuse of public power for private benet is sending cold shivers across counties. The evolution of county governments created yet another platform for public resources to be transacted between power holders and the private sector. The budgeting process in counties in itself was symbolic as majority of counties inated gures with the aim of diverting such resources for their own selfish gains. It baes to read the report by the controller of budget of how billions of shillings cant be traced just because of a few individuals.
Review ban on caning in schools
The Ethics and Anti-Corruption Agency headquarters in Nairobi. FILE It is imperative for a forensic audit to be carried out for public good. However, a red signal is blinking in the new structures of county government. The budget process was not participative and consultative as required by law. The only hope is for the members of the public particularly the youth to stand up and be counted as anti-corruption ambassadors. There is need to institute effective checks and balances both in the national and county government if economic growth for all of us from every corner of the republic is to be enjoyed.
hat caning in schools was abolished is unfortunate. As a teacher, the ban is fuelling and fanning indiscipline. Pegging solution to this on counselling alone is a pipe dream. The notoriety of students gains more breath, the more the rod is kept away. Doing without it is akin to telling a police ocer to chase an armed criminal empty-handed, and halt their crimes through counselling. Recent terrorism comes to mind. Wayward pupils should not be left untamed. Telling teachers to keep the cane at bay and preach to students can be counterproductive. No wonder God deems t the responsible use of rod in the Bible, to mend a childs behaviour.
n Tuesday , the International Monetary Fund announced yet another reduction in its global growth projections for 2014, with its estimate of US growth also reduced (citing reduced government spending, but not the present U.S. government shutdown or the heretofore unthinkable notion of the US government defaulting on its obligations). Despite the seeming urgency of global economic slowdown, when world leaders attended their annual fall confabulation at the United Nations in New York last month, they focused on the diplomacy of physical security (Syria, Iran, etc.). Thus another year has passed in which global economic security issues were on no ones reported agenda. Present-day economic imbalances particularly those stemming from the rapid emergence of the post-socialist nations over the past 15 years, with their associated supply of excess labor, productive capacity and global capital, relative to demand have hamstrung the economies of the advanced nations. Such economic dislocation can no longer be resolved by any one power, or even by two or three. Indeed, there is enormous risk today of unilateral or bilateral actions being viewed by players left out of such actions as economically threatening or even hostile, leading to economic countermeasures. The issue is compounded by the complexity of the relationships among and between developed nations on the one hand and emerging ones on the other. It is hard to imagine moving beyond a global economy that is just getting by, and therefore at material risk of new and deeper crisis, without a more open dialogue among the Group of 20 (G20) nations and proactive steps toward mutual accommodation.
Standards
Yet, since the central banks of the developed world have managed to more-or-less stabilize their economies however tenuously discussion of a global grand bargain focused on rebalancing international trade and nance has been all but absent. The situation in the euro zone will continue to plague the global economy until it either selfstabilises or a solution is found. I do not believe that it will self-stabilize (despite recent quiescence), so several proactive alternatives should be considered. A multilateral eort is going to require giveand-take across the board, and the European situation is at a stalemate. Given the enormous interdependence of global nancial institutions, having multiple standards means that the entire international nancial system is as vulnerable as the weakest of those standards which in the case of euro zone banks is very weak indeed. Alpert is a fellow at The Century Foundation and founding managing partner of Westwood Capital, LLC , a New York investment bank.
DIPHUS KIPROP NGENY

Mt Elgon
PETER MUONGOYA
Kambaa
US government shutdown will affect services in Kenya
f the United States government shutdown continues, it will aect essential services in Kenya. A government agency like the United States Agency for International Development (USAid) is in charge of funding numerous NGOs and various agencies such as the Kenya Medical Supplies Agency (Kemsa) that contribute to the national supply chain to
lighten the burden of HIV and Aids in Kenya. The United States Presidents Emergency Plan for Aids Relief (PEPFAR) had by the end of 2012 put over 580,000 Kenyans on antiretroviral treatment and provides counseling and testing services for 5.87 million Kenyans. These NGOs and agencies such as Kemsa have not been funded since October 1, along
with services across the federal government. The last US government shutdown was estimated to have cost $1.4 billion, which in todays dollar estimates amounts to about $2.1 billion in under four weeks or $80 million dollars a day. Even government operations resume tomorrow, the economic dent will trickle down to that Kenyan woman, man and child that
depends on NGO and KEMSA for next months rell of anti-retroviral pills. As Obamacare ironically seeks to lighten medical cost, the US government shutdown, however temporary, will aect many Kenyans.
CATHERINE MIMANO
Nairobi
16
NEWS INDEPTH Hospital is best

When premature babies are born in health facilities their chance of surviving is greater.
Fee matenity sevice in public hospitals gives hope to mothes with petem babies
BY JOHN GACHIRI
Preterm babies born at home are about twice as likely to die as those born in health facilities.
Nairobi
North Eastern
Babies born in Nairobi region are ve times more likely to be born in health facilities than babies in North Eastern Region.
Only 2 out of every 5 babies born in Kenya are delivered in a health facility.
Registration of Births in Kenya 780 000 760 000 740 000 720 000 700 000 680 000 660 000 640 000 620 000 600 000 2008 2009 2010 2011 2012
f mothers were excited about maternity fee being waved, doctors are ecstatic that nally something is being done to make Kenya a safe place to give birth. The free maternity healthcare was a pledge by the Jubilee Coalition but politics aside, it is both a development and economic issue that although costly now, it will pay o in the long run. Doctors , nurses, donors, government ocials and other healthcare professionals in an August, forum agreed that free maternity was a good idea and committed to see it succeed. Dr John Ongech, the assistant director at Kenyatta National Hospital and a gynaecologist and obstetrician consultant who sat on the board that advised the government on how to go about its promise to mothers said that they estimated that the free maternity programme would cost Sh15 billion. However, the government allocated a total of Sh31.6 billion to the Health docket, with Sh3.8 billion going towards nancing free maternity services. Unfortunately a politicians dream is a technocrats nightmare and it will take time to ne tune the policy which if well implemented will achieve social and economic goals. In addition to free maternity being a development issue and a campaign pledge it is also a constitutional right. Under the Bill of Rights the law states that: Every person has the right to the highest attainable standard of health, which includes the right to health care services, including reproductive
health care. Under Vision 2030 some of the goals in the healthcare sector are to restore hospitals across the country and data from the State agency shows that there has been progress. A total of 53 hospitals are under rehabilitation, nine hospitals have been completed, 14 hospitals are above 50 per cent complete, 26 hospitals are below 50 per cent complete, four hospitals are at foundation stage, says the an update from State agency. Waiving the fees is also meant to encourage women to deliver in hospitals as opposed to homes and therefore prevent deaths which researchers have shown has a direct impact on economic growth. We estimate that a one percentage point increase in adult survival rates increases labour productivity by about 2.8 per cent, with a 95 per cent condence interval of 1.2 to 4.3 per cent, says a study titled Health and Economic Growth: Reconciling the Micro and Macro Evidence by David E. Bloom by David Canning.
A total of hospitals under rehabilitation
53
562 1438 873 1548 291 965 2166 532
SOURCE:ECONOMIC SURVEY
More hospitals are being renovated
Health Institutions by region (2012)

Nairobi Central Coast Eastern North Eastern Nyanza Rift Vallley Western
Registered members of the National Hospital Fund

2007/2008 200/2009 2009/2010 2010/2011 2011/2012 2,076,496 2,176,470 2,841,935 2,886,686 3,327,499
SOURCE:ECONOMIC SURVEY
17
NEWS INDEPTH Shortage of incubators

Public hospitals in Kenya have an acute shortage of incubators
Moi Referral Hospital
93
35 8
Embu Provincial General Hospital Nyeri Provincial General Hospital Nakuru Provincial General Hospital
The number of incubators at national and provincial hospitals
404
KEY
25 10
Garissa Provincial General Hospital Kenyatta National Hospital
19 9
27 6
The number of preterm babies born in those facilities in April 2013
8 5
Nyanza Provincial General Hospital Kakamega Provincial General Hospital Coast Provincial General Hospital
100 8
Pumwani MaternityHospital
Number of preterm babies admitted in April Number of incubators
10 16
12 8
Low-cost and life-saving treatment
45 9
123 14
Newborn deaths can be reduced signicantly with simple low cost solutions
35%
Major causes of newborn deaths
Preterm births Corticosteroids injections can speed up lung development before preterm delivery COST SH.40
23%
Birth complications Equipment to help the baby start breathing COST SH45-SH 540 Infections Chlorhexidine to prevent umbilical cord infections. Injectabl eantibiotics to treat newborn pneumonia and sepsis SHS 9 SH 180
25%
Preterm care and training
Better trained healthcare workers would reduce deaths from preterm birth complications.
Shortage of staff
Midwives Public hospitals in Kenya need specialised midwives to handle birth complications, one of the major causes of death for newborns. Nurses Nurses play a crucial role in the care of preterm babies. Kenya has only only nurses for every 4,000 reidents, fewer than half of the number WHO recommends
Lack of specialisation Missing subject
Nursing students in Kenya do not have the option to specialise in midwifery or preterm care. General nursing schools in Kenya do not train nurses for the special needs of preterm babies.
18
REGIONAL NEWS
DISPUTE Transporters reject new axle limit regulations seeking to punish crews for overloading
BRIEFING
LAGOS Nigeria naira falls as exporters lock-in hard currency needs
Nigerias naira eased against the US dollar on the interbank market on Wednesday as importers started to lock-in their hard currency needs at favourable rates. The local currency closed at 160.35 to the dollar compared with Tuesdays close of 159.8 naira. Traders said some importers took advantage of the increased dollar liquidity in the market to buy more hard currency at favourable prices, exerting pressure on the local currency. The naira rmed to its strongest in two weeks on Tuesday, buoyed by ample dollar sales by multinational oil companies.
Tanzania faces fuel cisis as tuckes potest new ules

cent of goods are transported by road following the collapse of railway services a decade ago, the strike will have Tanzania is bracing for an acute fuel serious repercussions on the economy shortage that could paralyse transport if it will not be averted. in most parts of the country as a feud Tatoa members operate about between the state and truck operators 15,000 trucks, which transport goods intensied. between Dar es Salaam and other regions as well and between the country Dar es Salaam is likely to be the and its neighbours. biggest casualty of the decision by According to data from members of the TanzaTatoa, on average, between nia Truck Owners Asso100,000 and 150,000 ciation (Tatoa) to go on tonnes of goods are transstrike from Wednesday We know that ported daily within and in protest at the newly the moe this outside Dar es Salaam. introduced penalty on Truck operators have excess axle weight. stalemate been on a go-slow since Adverse eects of the continues, the Monday protesting Work strike will also be felt in upcountry regions, with moe it huts ou minister John Magufulis analysts warning of acute business and ou directive that truck crews shortages of fuel and othbe penalised for weights economy er goods, adding that this that are at least ve per FAISAL EDHA, OWNER, would lead to spiralling cent above axle limits, OVERLAND LOGISTICS prices. contrary to the Road TrafTwo million litres of petrol, 3.9 milc (Maximum Weight of Trucks) Regulion litres of diesel, 550,000 litres of lations of 2006. jet fuel and 190,000 litres of kerosene Truck owners said that Dr Magufuli are used in Tanzania daily. scrapped a clause of the regulations without consulting transporters and Dar es Salaam and the rest of the following proper procedures. They country virtually ground to a halt in 2011 when fuel dealers went on strike urged the Attorney General to give to protest the governments decision a correct interpretation of the reguto regulate pump prices. lations. Motorists queued in long lines well As the stando remained unrepast midnight daily for about one week solved on Wednesday , stakeholders while those relying on public transport warned of dire consequences which were forced to walk up to 30km after would result in higher commodity daladala (matatu) operators groundprices for consumers. ed their vehicles for lack of fuel. More than 600 containers were In a country where about 90 per piled up on Wednesday and a queue
BY BD CORRESPONDENT IN DAR ES SALAAM
JOHANNESBURG South Africas Cell C lodges competition complaint

South Africas third-largest mobile operator Cell C on Wednesday lodged an antitrust complaint against MTN Group and Vodacom, charging its bigger rivals with discriminatory pricing. Unlisted Cell C said in a statement it had lodged the complaint with South Africas competition watchdog over the rates MTN and Vodacom charge their own customers for calling users of other networks. MTN and Vodacom offer discounts when customers call subscribers on the same network, but charge a premium for calls to other networks, Cell C CEO Alan Knott-Craig said in a statement.
Truck transports goods to Rwanda. Tanzanians truck operators have gone on strike to oppose penalties imposed on crews for breaking axle limit regulations. FILE
of ships had built up in the outer anchorage of Dar es Salaam port. We know that the more this stalemate continues, the more it hurts our business and our economy. We are told some ships have started to bypass our port. We love this country, for it is our only home, but we need a win-win situation, said Mr Faisal Edha, a Tatoa member and owner of Overland Logistics. Tatoa members insisted on Wednesday that Dr Magufuli went overboard by revoking the allowance on cargo and passenger vehicles. This is unfair. The minister didnt consult us in his decisions, he just wrote on us imposing the new regulations a day after he made such decision. We have presented our grievances to Prime Minister Mizengo Pinda, and now we are waiting for the ofcial statement, until then our trucks will not operate to avoid discontent at weighbridges, said Mr Edha. Dr Magufuli on Monday reiterated the government stand saying they are going to uphold the maximum gross vehicle weight of 56 tonnes, and saying exceeding weights have been damaging the highways, citing Mlandizi to Chalinze as an example. He also challenged those opposing his decisions to go to court instead. We are not going to rush to court, we know our government will heed our cry, but the most important thing is, if this excess was found to be damaging, a proper procedure involving the Parliament could have been done and not the minister alone, said Mr Davis Mosha, a member of Tatoa.
KAMPALA Mobile calling charges climb as operators raise voice rates
Nigeia aviation ministe calls ai cash act of God

Nigerias aviation minister has caused outrage by calling air crashes inevitable acts of God, as she sought to deect criticism of her record after the countrys second deadly accident in 15 months. Stella Oduah was speaking to journalists at the presidential villa on Monday, three days after 16 people were killed in a small passenger plane that crashed shortly after takeo outside Lagos airports domestic terminal. In June last year, a Dana Air ight crashed into a Lagos apartment block, killing 163 people in the countrys worst airline disaster in accidents but it is inevitable...We do everything to ensure that we do not have accidents, but it is an act of God, she said. We do not speculate on the cause of accidents. Oduah later qualied her comment, saying that everyone from baggage handlers to regulators, airlines and management shared responsibility for passenger safety and that a preliminary report into the latest crash should be out in a couple of weeks. But Nigerian newspapers and Twitter exploded with angry responses. Former Aviation minister Femi Fani-Kayode was quoted in Vanguard local daily as calling for her resignation. The Punch newspaper quoted popular blogger Japheth Omojuwa as saying: If God is in charge of safety in the aviation sector, we are then duplicating roles by paying a salary (to the minister)... When you start passing the buck to God, then the time has arrived to pass on your resignation letter. Oduahs spokesman was not immediately available for comment. The belief that fatal accidents are acts of God, or of malevolent spirits, is common in Nigeria and many other African countries. - REUTERS
Mobile phone subscribers are set to pay more for a phone call after some telecoms announced an increase in voice call rates. MTN, Ugandas biggest telecommunication company by subscribers, yesterday announced in a media notice an increase in voice call rates, with the new rates starting today. The rm, for instance, increased the call rate for subscribers using the per minute billing plan from Ush240 to Ush270 per minute calling other networks, while the rate within the network remained unchanged at Ush240. The rate for subscribers using the per second billing plan went up from Ush4 (Sh240) to Ush4.5 per second.
YAOUNDE
Solar panels make inroads in Cameroon as outages persist
The use of solar energy to power lighting in the home is fast gaining ground in Yaounde and Douala, following persistent outages in the power supply provided by the countrys sole hydroelectric company. Many citizens who cannot easily afford to buy and run petrol-powered generators recognise that solar energy is cheaper, cleaner and safer and reliable. I and my family use solar powered lamps because electricity supply by AES-SONEL (the hydroelectric company) has become unreliable and dangerous, said Clarkson Agbor, a primary school teacher in Yaounde.
The wreckage of a plane crash shortly after take-off in Lagos on October 3 . AFP two decades. An investigation has yet to reveal the cause. We do not pray for
19
20
MONEY & MARKETS

VAT law gives Indian dug ms uppe hand

TAXATION Manufacturers say prices of
locally-made medicines are set to rise

risen by 23 per cent from Sh14 billion the previous year. Recent changes to the value added tax Unveried data from an Indian(VAT) Act have put local drug manu- owned rm GPE Expo Ltd, which is facturers at a disadvantage compared organising a pharmaceutical exhibito their Indian and Chinese rivals by tion set for June next year, indicate that the industry will be worth Sh34 raising their processing costs. The VAT Act 2013 exempted medi- billion by next year. cal drugs from tax, but in reality that Deloitte East African tax expert meant that manufacturers cannot claim Nikhil Hira said yesterday that mediVAT on raw materials and packaging of cal drugs were put under the exempt drugsunlike before when they were goods section in the rst schedule of the zero-rated which allowed them to claim amended VAT Act 2013, lumping them input tax. together with other sensitive goods like Manufacturers now say that prices fertilisers and seeds. Even though changes in the VAT law of locally-made drugs are set to rise, putting at risk fortunes of the industry had simplied administration of the tax which employs thousands and would reduce refunds of workers. claims, Mr Hira said the If we dont take acprices of the goods under If we dont take the schedule were sure to tion quickly we could lose action quickly go up with time, if they had between 5,000 and 6,000 not already done so. jobs for people who are we could lose It is cheaper to import directly employed in the between 5,000 drugs from China and India industry. Many other inand 6,000 jobs than to manufacture them direct jobs could also be here in Kenya. So local manlost, said chairman of the PALU DHANANI, CHAIRMAN Federation of Kenya Pharufacturers may soon have no OF PHARMACEUTICAL maceutical Manufacturers, business to talk of, said Mr MANUFACTURERS Palu Dhanani, in an interHira in a presentation at the Sarova Panafrique Hotel in view yesterday. Making medical drugs VAT-exempt Nairobi yesterday. means traders do not pay any levy on The meeting was called by the Kenya imports, giving them a pricing edge over Association of Resident Associations local manufacturers. to discuss the impact of the new VAT Imports from India and China are legislation on the economy. The tax experts said in the past many the main competitors to Kenyas naspeople and companies had lobbied the cent drug processing industry. According to the Kenya Pharma- Treasury to have their goods excluded ceutical and Health Report 2010, sales from the VAT bracket, leading to an unof over-the-counter and prescription wieldy law that had become dicult to drugs hit Sh18 billion in 2008, having implement.
BY GEOFFREY IRUNGU
Manufacturers and staff numbers as at December 2012

Basic pharmaceutical products and pharmaceutical preparations Chemicals and chemical products Food products Beverages Wood and its products excluding furniture Furniture Motor vehicles, trailers Printing and reproduction of recorded media Paper and paper products Basic metals Source: Economic Survey 2013 3,525
16,941 120,055 7,733 11,384 4,704 3,432 9,253 7,878 9,535
Universal Corporation employees pack generic medicine at the companys premises in Kikuyu. Imports from India and China are the main competitors to Kenyas nascent drug processing industry. FILE
Manufacturers propose that the VAT Act 2013 be changed again to take account of their industries concerns and preserve the thousands of people it has employed. We have been trying to meet the Treasury (secretary) over the issue but we havent succeeded yet. If we give advantage to importers, we will lose our place as the biggest manufacturer in
the region, said Mr Dhanani. He proposed that the drugs be zerorated as was the case previously. We can address the problem if goods or materials we buy abroad for manufacturing drugs are zero-rated, said Mr Dhanani. The other way is to keep the exemption on drugs as is currently the case in VAT Act 2013, but also go ahead and exempt all materials they import or buy locally so that the playing ground is levelled relative to importers of similar drugs. The pharmaceutical bodys chairman proposed that the exemption from paying VAT on materials be allowed only for certain gazetted local manufacturers. The third alternative would be to impose import duty on products that the local manufacturers have capacity to produce, Mr Dhanani said. girungu@ke.nationmedia.com
UK oil exploe to spend Sh13.7bn on Mombasa block

BY DAVID HERBLING
British exploration rm BG Group plans to spend Sh13.7 billion ($160 million) on drilling for oil and gas at its two oshore blocks located east of Mombasa island, stepping up Kenyas search for more crude reserves. The London Stock Exchange-listed oil and gas explorer will from next year begin drilling three wells on exploration blocks L10A and L10B, joining a host of foreign rms searching for energy resources in Kenya, spurred by Tullows oil nd. The Reading-based energy rm has written to the National Environment Management Authority (Nema) seeking approval to commence deep-
sea drilling works at the two blocks it acquired in 2011. BG is planning to undertake exploration drilling to identify potential commercial reserves of oil and gas within the L10A and L10B licence blocks, said BG Group in its environmental impact assessment (EIA) report to Nema. The purpose of the programme is to drill up to three exploration wells from a drillship to investigate the geological structures identied from BGs seismic surveys as potentially containing natural gas and oil reserves. Kenya has witnessed increased activity in the upstream sector evidenced by aggressive drilling of exploratory wells for oil and gas since Tullow Oil
The two blocks estimated to hold one billion barrels of oil
Estimated amount of oil
rst struck crude deposits in Turkana in March 2012. Tullow last month made its fourth consecutive wildcat discovery since the British rm began exploratory drilling in the semi-arid
region in 2012; and is now testing the commercial viability of its nds. Africa Oil, Tullows joint operating partner in parts of northern Kenya and Ethiopia, announced it had raised ve-fold the estimated deposits in the Lokichar basin to 368 million barrels of oil. Uganda has already struck commercial crude oil deposits while Tanzania and Rwanda have made discoveries of vast natural gas reserves; developments that underline East Africas potential as an energy resource-rich region. BG says drilling will help quantify the potential of the two blocks estimated to hold one billion barrels of oil equivalent (boe) of natural gas. BG Group entered Kenya in 2011
and has signed production-sharing contracts with the government for the two oshore exploration blocks. BG Group is the operator of both blocks where it holds a 40 per cent stake in Block L10A together with its partners Cove Energy (25 per cent), Premier Oil (20 per cent) and Pancontinental (15 per cent). It has a 45 per cent interest in Block L10B which is also owned by Premier Oil (25 per cent), Cove Energy (15 per cent) and Pancontinental (15 per cent). The exploration rm is banking on the Kenyan blocks to bolster its regional operations having already discovered huge natural gas reserves in Tanzania and Mozambique.
21
MONEY & MARKETS
Teasuy close to Sh34bn ovedaft limit at CBK again

CEILING Its account stood at Sh33.1 bn last
Government overdraft at CBK June-Sept (Sh bn)

Government overdraft at CBK has gone up bySh26.1 billion from the end of June to the end of September
I&M changes shaeholding to comply with listing ules

I&M Holdings has re-organised its shareholding structure to comply with stock market regulations that require companies that are listed on the Main Investment Market Segment (Mims) to have at least 1,000 shareholders. The company announced yesterday that the High Court has sanctioned a plan to transfer shares held as a block by a major shareholder entity, Biashara Securities Limited, to individual shareholders. Biashara Securities Limited, which holds a 13.92 per cent stake in I&M Holdings, has approximately 1,000 individual shareholders and its winding up will raise the number of I&M Holdings shareholders well above the required 1,000. I&M Holdings had 700 shareholders at the time of listing earlier this year. After a restructuring of the balance sheet for both I&M Bank and City Trust, the listed unit has 392,362,039 shares. On listing, the number of shares held by Biashara Securities stood at 54.62 million.
SOURCE:CBK
month, reecting pressure to fund operations

audited annual revenue. The limit rose from Sh25.4 billion in July this year to The Treasury has nearly touched the Sh34.2 billion when new audit gures were released, giving the government overdraft limit at its Central Bank of more room to borrow from CBK. Kenya account for the second time in two months, reecting increased presAccording to the latest weekly bullesure on the government to tin released by CBK, gross government domestic nance its operations. debt increased by Sh92.3 New data shows the Kenyas debt-to- billion to reach a high of Treasurys overdraft on Sh1.143 trillion on Septemits CBK account stood at equity atio is Sh33.1 billion at the end of tending above ber 27, 2013, from Sh1.051 last month, just marginally trillion held at the end of the 50 pe cent June 2013. short of its legal ceiling. The Treasurys overdraft mak, well above This followed Sh37.3 at CBK touched its limit of billion, Sh29.3 billion and its EAC pees Sh34.2 billion in August, beSh26.1 billion respective fore a subsequent reduction increases in the stocks of RISK FIRM, STRATLINK in the rst week of SeptemTreasury bills, Treasury ber by Sh7.1 billion left the overdraft at bonds and government overdraft at Sh27.1 billion. the Central Bank, which were partially oset by a Sh0.5 billion reduction The government is allowed by law in other domestic debt, during the to overdraw from its CBK account an amount equal to ve per cent of the last period, said CBK. The rise in domesBY CHARLES MWANIKI
The Treasury building in Nairobi. Treasurys overdraft at CBK touched its limit of Sh34.2 billion in August. FILE
tic debt marks a sharp reversal of the trend of reduction between the end of August and mid-September, when debt dropped from Sh1.12 trillion to Sh1.09 trillion. The drop in domestic lending was characterised by a steady reduction in Treasury bill rates. These rates are now on the rise again, with the 91-day T-Bill rate at 9.36 per cent, the 182-day T-Bill at 10.1 per cent and the 364 day T-Bill at 10.8 per cent. The rates were at 9.1 per cent, 9.6 per cent and 10.3 per cent respectively at the end of September. Of the countrys total domestic debt as at September 27, government securities comprise of 94.4 per cent, of which Sh305.1 billion is in T-bills and Sh773.5 billion in the longer term T-bonds. The proportion of government securities held by commercial banks stands at 49.7 per cent, pension funds at 25.8 per cent, insurance companies at 10.5 per cent, other investors at 10.2 per cent and parastatals at 3.8 per cent. The government intends to issue a sovereign bond to plug a Sh330 billion national budget decit. The bond sale is expected to raise money at a lower price than the local market, which will also allow the private sector room to borrow from banks. Markets observers have, however, urged prudence in the borrowing plan, saying that the countrys debt sustainability could be impacted negatively if the borrowing goes unchecked. Already, Kenyas debt-to-equity ratio is trending above the 50 per cent mark, well above its EAC peers. The Eurobond issues debt service payments should be assessed to ensure that budgetary diculties are not created, said research and risk rm Stratlink Kenya in its October economic update. cmwaniki@ke.nationmedia.com
Transfer
The Nairobi Securities Exchange (NSE) granted the rm a six-month exemption within which it must increase its shareholder base to the minimum 1,000 required for rms listed on the main investments segment at the bourse. In the process of the share transfer Biashara Securities is being wound up. The ratio of how the I&M shares will be issued to its shareholders will be in the same proportion of their holdings in Biashara, said I&M marketing and product development general manager Suprio Sengupta. Biashara Securities has already made an application to the Capita Markets Authority for approval of private transfer of its holding in IMHL to its shareholders. This transfer will increase the number of shareholders of I&M Holdings, but there will be no dilution in shareholding of other shareholders of I& M Holdings as a result of this transfer, said the I&M Holdings board in a statement yesterday. Following the High Court approval of the share transfer arrangement, shareholders in Biashara Holdings are now required to have CDS accounts into which their I&M shares will be credited. I&M Holdings will today make available a circular approved by CMA to its shareholders giving further details on the proposed transaction. Ziyungi Ltd is the largest shareholder in I&M Holdings with a 18.74 per cent stake.
-CHARLES MWANIKI
Tracking the markets: Benchmark Index (Latest Data) Africa

JSE All Share Index
South Africa 43,169.21 0.87%
USE All Share

Uganda
1,678.71 1.14%
DSE All Share

Tanzania
1,786.88 0.00%
NSE All share

Nigeria
36,962.63 -0.80%
EGX30 Index
Egypt
5,931.70 2.23%
Oct 12
Oct 13
Oct 12
Oct 13
Oct 12
Oct 13
Oct 12
Oct 13
Oct 12
Oct 13
World
DJ Industrial
New York 14,802.98 0.18%
Xetra Dax
Frankfurt
8,621.98 1.24%
HangSeng
Hongkong
22,951.30 -0.36%
Nikkei
Tokyo
14,194.71 1.12%
Sensex
Mumbai
20,246.55 -0.01%
Oct 12
Oct 13
Oct 12
Oct 13
Oct 12
Oct 13
Oct 12
Oct 13
Oct 12
Oct 13
22
MARKET DATA
Agro Commodities Market
Early Morning wholesale commodity prices for week ending 10th October 2013
CEREAL Dry Maize Green Maize Ext Bag Finger Millet Bag Sorghum Bag Wheat Bag LEGUMES Beans Canadian Bag Beans Rosecoco Bag Beans Mwitemania Bag Mwezi Moja Bag Beans Dolichos (Njahi) Bag Green Gram Bag Cowpeas Bag Fresh Peas Bag Groundnuts Bag ROOTS & TUBERS Red Irish Potatoes Bag White Irish Potatoes Bag Cassava Fresh Bag Sweet Potatoes Bag HORTICULTURE Cabbages Ext Bag Cooking Bananas Med Bunch Ripe Bananas Med Bunch Carrots Ext Bag Tomatoes Lg Box Onions Dry net Spring Onions Bag Chillies Bag Cucumber Bag Capsicums Bag Brinjals Bag Cauliower crate Lettuce Bag Passion Fruits Bag Oranges Bag Lemons Bag Mangoes Local Bag Mangoes Ngowe Sm Basket Limes net Pineapples Dozen Pawpaw Lg Box Avocado Bag Kales Bag OTHERS Eggs Tray Bag 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 90 2800 4800 3600 3000 4400 8100 4050 2700 2000 7200 3600 3600 1200 5400 3000 3500 4500 5000 3500 3800 7200 6300 4500 3500 10000 2800 900 5850 4500 3800 2600
Commodities
Last weeks completed deals in Energy, Power and High Technology
ISSUER DOMICILE NATION NAME PHX ENERGY SERVICES CORP CANADA ENERGY AND POWER TF MACRO DESCRIPTION SHARES OFFERED SUM OF ALL MKTS 2,600,000.00 10.4 OFFER PRICE PROCEEDS AMT INC. OVER SOLD - SUM OF ALL MKTS ($ MIL) 26.24
5200 6000 6000 5600 5200 7200 4600 3000 10500 3200 3300 2200 3200 2200 530 640 4700 2500 680 1800 3200 2000 3300 1800 2200 2200 4000 2800 2300 2400 1200 780 720 2200 2300 1000 310
6500 5200 7200 5850 3150 2000 11000 2500 3000 2000 2900 5500 400 600 5500 5200 650 1500 950 1500 1000 900 1170 1000 6500 2600 2800 1700 1500 1700 1050 700 3500 1000 330
7200 7200
7200 7200 9000 10800 6300 2550 11700 2300 2400 2300 2300 800 630 2500 2400 780 1200
PATTERN ENERGY GROUP INC
UNITED STATES
ENERGY AND POWER
16,000,000.00
22
352
8000 7200 2700 9200 3500 3500 1800 2000 1600 300 300 4500 2500 1040 1200 1300 2500 1400
ODFJELL DRILLING AS UIL HOLDINGS CORP
NORWAY UNITED STATES
ENERGY AND POWER ENERGY AND POWER
56,000,000.00 5,000,000.00
42 37.25
393.35 214.19
2300 2700
EMERALD OIL INC SEMBCORP SALALAH POWER & WATER
UNITED STATES OMAN
15,000,000.00 33,410,019.00
6.7 1.59
115.58 137.98
350 500 5000 3000 650 800 3500 3500 2000 1900 3800 2600 2400 2500
SAN LEON ENERGY PLC CT ENVIRONMENTAL GROUP LTD
IRELAND-REP CHINA
652,631,579.00 340,000,000.00
0.048 1.48
49.9 64.9
3000
WESTAR ENERGY INC INFRASTRATA PLC
UNITED STATES UNITED KINGDOM
8,000,000.00 8,000,000.00
31.15 0.1
249.2 1.28
3100 2700 1500 2000 650 1000 1400 1000 300
2850 3700
HC INTERNATIONAL INC CHINA HONG KONG HIGH TECHNOLOGY HIGH TECHNOLOGY 72,000,000.00 43,000,000.00 7.5 0.29 69.64 1.61
2800 700 780 1890 2000 1000 360
DAIWA ASSOCIATE HOLDINGS LTD
400 2200 2000 900 290
VIOLIN MEMORY INC SPEED COMMERCE INC
UNITED STATES UNITED STATES
HIGH TECHNOLOGY HIGH TECHNOLOGY
18,000,000.00 6,956,522.00
9 3
162 20.87
SOURCE: STATE DEPARTMENT OF AGRICULTURE. EMAIL MARKETINFO@KILIMO.GO.KE
Unit Trusts
Effective date: 8th october 2013
MONEY MARKET FUND OLD MUTUAL COMMERCIAL BANK OF AFRICA STANLIB BRITISH-AMERICAN MADISON ASSET AMANA CAPITAL GENCAP HELA FUND CIC ZIMELE FIXED INCOME FUND STANDARD INVESTMENT BANK GENCAP HAZINA FUND CIC BALANCED FUND OLD MUTUAL / TOBOA BRITISH-AMERICAN BA MANAGED RETIREMENT STANLIB FUND MADISON ASSET AMANA GENCAP ENEZA FUND CIC ZIMELE EQUITY FUND OLD MUTUAL OLD MUTUAL EAST AFRICA FUND COMMERCIAL BANK OF AFRICA BRITISH-AMERICAN STANDARD INVESTMENT BANK STANLIB MADISON ASSET AMANA GROWTH GENCAP HISA FUND CIC BOND FUND OLD MUTUAL BOND FUND BRITISH-AMERICAN STANLIB BOND FUND B1 STANLIB BOND A SHARIAH COMPLIANT INVESTMENTS GENCAP IMAN FUND CURRENCY 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 DAILY YIELD 5.97% 5.44% 8.89% 8.03% EFFECTIVE ANNUAL RATE 6.13% 5.60% 9.31% 8.33%
COVISINT CORP RINGCENTRAL INC
UNITED STATES UNITED STATES
6,400,000.00 7,500,000.00
10 13
64 112.12
WANDISCO PLC FORGAME HOLDINGS LTD
UNITED KINGDOM CHINA
2,000,000.00 31,370,000.00
9.5 51
30.47 206.33
9.05% BUY 95.69 9.66 152.89 180.82 128.84 67.12
9.43% SELL 96.22 9.91 162.8 186.10 129.93 70.82
APPLIED OPTOELECTRONICS INC CENSOF HOLDINGS BHD
UNITED STATES MALAYSIA
3,600,000.00 10,000,000.00
10 0.465
36 1.44
VALUE HR CO LTD
JAPAN
HIGH TECHNOLOGY
360,000.00
2,000.00
8.41
MONTAGE TECHNOLOGY GROUP LTD OKH GLOBAL LTD
CHINA CHINA
7,100,000.00 60,000,000.00
10 0.68
71 32.53
13.01 369.43 149.05 156.29 187.17 75.00 53.35
13.63 395.83 157.74 165.91 193.11 75.38 56.64
@UK PLC INNO-TECH HOLDINGS LTD
UNITED KINGDOM HONG KONG
16,064,500.00 30,000,000.00
0.33 0.2
8.52 0.77
ASE GROUP NEO SOLAR POWER CORP
TAIWAN TAIWAN
130,000,000.00 -
26.1 100.3
114.86 16.97
13.62 101.33 148.29
14.34 103.73 151.31
EMPIRED LTD SUNNY OPTICAL TECH(GRP)CO LTD
AUSTRALIA CHINA
25,000,000.00 97,000,000.00
0.62 8.06
14.6 100.84
NEO SOLAR POWER CORP
TAIWAN
HIGH TECHNOLOGY
100.3
16.97
23
MARKET DATA
Nairobi Stocks Stocks Nairobi
NSE 20 Share Index
Nairobi 4,947.00 0.02%
African Indices
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 4,947.00 4,903.43 43,169.21 1,678.71 211.44 18,411.68 11,424.20 1,786.88 36,962.63 5,931.70 4,467.33 NET.CHNG 0.98 -5.79 373.01 18.98 1.20 -71.60 142.33 0.00 -297.02 129.61 -8.36 PCT.CHNG 0.02% -0.12% 0.87% 1.14% 0.57% -0.39% 1.26% 0.00% -0.80% 2.23% -0.19% OPEN 4,930.79 4,909.22 43,158.51 1,621.00 210.23 18,543.06 11,169.08 1,745.66 36,904.52 5,753.53 4,482.39 HIGH 4,946.02 4,913.91 43,174.80 1,621.00 210.23 18,629.92 11,169.08 1,745.66 36,904.52 5,802.09 4,489.71 LOW 4,930.79 4,909.22 42,787.09 1,621.00 210.23 18,483.28 11,169.08 1,745.66 36,904.52 5,750.43 4,466.54 CLOSE 4,946.02 4,909.22 42,796.20 1,659.73 210.24 18,483.28 11,281.87 1,786.88 37,259.65 5,802.09 4,475.69
Sep 12
Sep 13
TUN MAIN INDEX
Daily DailyShare Weekly Share Share Report Report Report

PineBridge-27 Index
Nairobi
VWA VWA PREV PRICE 25.00 86.00 110.00 500.00 27.25 14.25 233.00 23.50 13.50 12.00 4.95 18.00 81.00 181.00 36.25 26.50 102.00 49.25 20.50 59.00 304.00 17.10 3.65 20.25 10.40 13.70 330.00 60.00 26.00 47.50 21.25 74.00 210.00 66.00 16.20 66.00 16.60 8.00 14.55 25.00 13.00 9.45 4.75 262.00 14.85 11.60 66.50 27.75 4.55 29.25 11.10 125.00 575.00 156.00 344.00 2.80 3.00 3.70 18.00 9.55 9.10 7.50 DAILY PRICE CHANGE -5.00% 0.00% 1.82% 0.00% -0.92% -2.46% 0.00% -1.06% 0.00% 0.00% 1.01% 0.56% -1.85% 0.00% 0.00% 0.00% -0.98% 0.00% 2.44% 0.00% -0.99% 0.00% 6.85% 0.00% 0.00% 3.65% -3.03% 0.00% 1.92% 2.11% 2.35% 0.68% 0.00% 0.76% 0.00% -1.52% 0.90% 3.75% 0.34% 1.00% 0.00% 0.00% 0.00% 0.00% -0.34% 3.02% -6.77% 0.90% 7.69% 1.71% 0.00% -8.00% 0.00% 0.00% -1.74% 1.79% 0.00% 1.35% -5.28% 0.00% -1.10% 10.00% 2,455,800 268,900 4,700 85,900 30,800 6,100 353,600 48,500 111,300 600 73,100 8,600 403,000 2,900 39,745,300 2,841,000 DAILY TRADED SHARES 600 1,100 4,600 8,500 600 16,900 500,100 80,200 1,907,100 59,600 600 500,100 75,100 126,500 2,500 1,251,100 500 78,700 2,600 10,400 1,800 4,000 3,900 108,400 69,600 1,400 62,100 100 189,000 133,100 390,100 64,000 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 3,702,777,020 235,750,000 392,362,035 2,984,137,017 280,000,000 542,984,148 309,159,514 4,190,845,080 35,403,790 360,000 1,496,469,035 58,500,000 188,542,286 284,789,128 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 2,179,615,440 59,895,000 700,000,000 515,270,364 96,000,000 665,441,775 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 75,708,873 218,467,081 40,035,982,000 405,255,320 MKT CAP. KSHS MN. 763,728.75 1,685,599.91 438,144.00 600,000.00 1,620,000.00 3,169,971.45 2,040,222.56 777,001.61 7,866,577.44 172,717.27 1,391,711.97 98,310,801.60 31,428,070.22 39,838,117.38 134,225,666.98 6,247,375.00 39,628,565.54 146,968,748.09 5,880,000.00 32,036,064.73 93,057,013.71 71,663,450.87 138,074.78 7,290.00 15,563,277.96 830,700.00 60,333,531.52 17,087,347.68 2,159,259.17 8,835,444.24 5,773,028.85 36,897,987.50 76,221,447.75 1,577,845.50 4,100,625.00 5,850,000.00 36,822,554.39 12,215,617.96 28,491,418.86 4,419,474.83 21,110,414.07 17,874,219.98 10,353,173.34 15,692,490.00 10,360,000.00 6,157,480.85 5,952,000.00 18,632,369.70 196,000.00 8,150,020.95 42,624.73 2,245,426.29 57,500,000.00 5,300,921.34 267,281,732.33 598,500.00 38,604.37 5,737,500.00 1,290,836.28 2,086,360.62 360,323,838.00 3,343,356.39 EPS LATEST 12MNTH -1.84 19.35 45.94 84.86 6.34 1.72 94.36 7.48 0.18 -11.80 0.68 1.61 9.90 14.75 3.26 3.22 1.90 4.11 1.49 5.87 26.60 1.84 0.37 -18.34 -6.35 1.80 15.90 2.21 2.56 3.60 1.35 2.51 12.17 5.63 1.74 -9.09 1.28 -4.26 2.36 -0.32 1.40 1.40 0.64 35.32 4.00 1.72 7.27 3.77 0.38 1.66 -2.02 10.11 32.71 11.46 8.82 -0.59 0.15 -1.09 4.09 0.69 0.44 0.41 P/E TRAILING -12.91 4.44 2.44 5.89 4.26 8.08 2.47 3.11 75.00 -1.02 7.35 11.24 8.03 12.27 11.12 8.23 11.98 14.09 10.05 11.32 9.29 10.54 -1.10 -1.64 7.89 20.13 27.15 10.35 13.47 16.11 29.68 17.26 11.81 9.31 -7.15 13.09 -1.95 6.19 -78.91 9.29 6.75 7.42 7.42 3.70 6.95 8.53 7.43 12.89 17.92 -5.50 11.37 17.58 13.61 38.32 -4.83 20.00 -3.44 4.17 13.84 20.45 20.12 EPS INTERIM PBV 6 MNTH TRAILING -1.84 19.35 45.94 84.86 6.34 1.72 94.36 7.48 0.18 -11.80 0.68 1.61 9.90 14.75 3.26 3.22 1.90 4.11 1.49 5.87 26.60 1.84 0.37 -18.34 -6.35 -0.38 15.90 2.21 2.56 3.60 1.35 2.51 12.17 5.63 1.74 -9.09 1.28 -4.26 2.36 -0.32 1.40 1.40 0.64 35.32 4.00 1.72 7.27 3.77 0.38 1.66 -2.02 10.11 32.71 11.46 8.82 -0.59 0.15 -1.09 2.81 0.69 0.44 0.41 0.79 0.67 0.39 4.01 1.10 0.48 0.42 0.42 1.04 0.44 0.62 3.32 1.76 2.21 3.13 1.22 10.31 2.74 0.56 2.14 3.03 2.41 0.40 0.00 0.45 3.14 6.93 5.11 1.40 0.90 2.53 5.26 2.69 1.50 1.76 0.93 0.53 1.84 0.68 1.12 0.00 1.43 1.89 2.32 0.77 1.21 2.26 1.49 0.25 1.64 1.01 1.54 8.10 3.44 11.90 2.14 -0.56 0.40 0.49 1.59 5.68 0.00 DPS LATEST 12MNTH 0.00 3.75 7.50 7.50 1.10 1.00 7.50 0.55 0.00 0.00 0.25 1.00 0.00 1.90 1.25 1.40 0.00 1.90 0.20 1.00 12.50 0.50 0.00 0.00 0.00 0.80 10.00 0.60 0.00 1.30 0.30 0.50 10.50 1.25 1.00 0.00 0.60 0.00 0.50 0.00 0.50 0.10 0.10 7.00 0.40 0.40 3.00 0.00 0.10 0.40 0.00 5.05 32.50 5.00 5.50 0.00 0.00 0.00 0.75 0.30 0.31 0.10 TOTAL DIVIDEND YIELD 0.00% 4.36% 6.70% 1.50% 4.07% 7.19% 3.22% 2.37% 0.00% 0.00% 5.00% 5.52% 0.00% 1.05% 3.45% 5.28% 0.00% 3.86% 0.95% 1.69% 4.15% 2.92% 0.00% 0.00% 0.00% 5.63% 3.13% 1.00% 0.00% 2.68% 1.38% 0.67% 5.00% 1.88% 6.17% 0.00% 3.58% 0.00% 3.42% 0.00% 3.85% 1.06% 2.11% 2.67% 2.70% 3.35% 4.84% 0.00% 2.04% 1.34% 0.00% 4.39% 5.65% 3.21% 1.63% 0.00% 0.00% 0.00% 4.40% 3.14% 3.44% 1.21%
726.58 -0.64%
AGRICULTURAL EAAGADS KAKUZI KAPCHORUA TEA LIMURU TEA REA VIPINGO SASINI WILLIAMSON TEA CAR & GEN CMC MARSHALLS SAMEER BANKING
52 WK HIGH 57.00 90.00 150.00 500.00 30.00 15.00 350.00 28.75 13.50 14.20 5.95 18.90 85.00 190.00 38.00 27.75 105.00 50.00 24.25 60.00 320.00 18.00 4.50 20.25 12.80 15.00 400.00 78.00 39.00 56.50 24.00 75.00 225.00 67.00 17.50 66.00 17.50 16.50 20.75 26.00 13.00 9.60 6.15 280.00 18.50 67.00 29.00 6.00 37.75 11.10 125.00 580.00 160.00 426.00 3.70 3.00 7.35 18.00 11.00 9.50 25.00
52 WK LOW 21.00 67.50 110.00 430.00 16.50 10.50 180.00 21.00 13.50 11.50 3.40 13.55 34.50 106.00 22.25 13.70 85.00 27.00 16.25 33.50 203.00 11.10 3.00 20.25 8.30 5.00 264.00 55.50 20.50 36.00 17.80 48.75 165.00 35.00 10.50 32.00 8.50 7.90 13.80 12.65 13.00 5.40 3.05 157.00 10.25 6.35 33.50 11.75 3.30 20.00 11.10 90.00 430.00 111.00 220.00 1.60 3.00 3.40 11.00 9.55 3.90 6.00
YTD % -4.00% 18.06% -6.78% 16.28% 43.42% 18.38% 17.00% -10.42% 0.00% -15.49% 16.87% 12.06% 90.48% 57.39% 56.84% 71.52% 0.00% 67.23% 18.84% 51.63% 29.79% 34.92% 1.43% 0.00% -8.33% 45.10% 48.20% -13.14% 19.54% 16.25% 9.95% 65.17% 13.51% 55.29% 38.46% 69.23% 87.50% -40.96% -15.79% 69.68% 0.00% 50.83% 32.39% 50.29% 39.72% 79.10% 63.98% 120.65% 45.59% 23.40% 0.00% 25.63% 16.63% 28.69% 29.81% 46.34% 0.00% -25.77% 34.87% 117.05% 86.14% -
LAST PRICE 23.75 86.00 112.00 500.00 27.00 13.90 233.00 23.25 13.50 12.00 5.00 18.10 79.50 181.00 36.25 26.50 101.00 49.25 21.00 59.00 301.00 17.10 3.90 20.25 10.40 14.20 320.00 60.00 26.50 48.50 21.75 74.50 210.00 66.50 16.20 65.00 16.75 8.30 14.60 25.25 13.00 9.45 4.75 262.00 14.80 11.95 62.00 28.00 4.90 29.75 11.10 115.00 575.00 156.00 338.00 2.85 3.00 3.75 17.05 9.55 9.00 8.25
AUTOMOBILES & ACCESSORIES
Sep 12
Sep 13
BARCLAYS CFC STANBIC DTBK EQUITY HF
Nairobi Nairobi
All Share Index (NASI)
132.08 -0.56%
I&M HOLDINGS KCB NBK NIC BANK STAN. CHART. CO-OP BANK COMMERCIAL EXPRESS (K) HUTCHINGS BIEMER KQ LONGHORN NATION MEDIA SCANGROUP STANDARD GRP TPS EA UCHUMI
CONSTRUCTION & ALLIED
Sep 12
Sep 13
ARM CEMENT LTD BAMBURI CROWN BERGER EA CABLES EAPC
Active Counters
Last Counter Price Prev Price % Change Shares Traded
ENERGY & PETROLEUM KENGEN KENOLKOBIL KPLC TOTAL UMEME INSURANCE BRITISH AMERICAN CIC INSURANCE JUBILEE KENYA RE
Safaricom British American Equity Co-Op Bank
9.00 9.45 36.25 17.10
9.10
-1.10% 39,745,300 2,841,000 2,455,800 1,907,100 1,251,100
Home Africa Limited 8.25
7.50 10.00% 9.45 0.00% 36.25 0.00% 17.10 0.00%
Gainers
Last Counter Price Prev Price Net Change % Chng
LIBERTY KENYA HOLDINGS 14.05 PAN AFRICA INVESTMENT CENTUM INVEST. OLYMPIA TRANSCENTURY A. BAUMANN BOC GASES BAT KENYA CARBACID EABL
Last Prev Price Net Change % Chng
Home Africa Limited 8.25 Olympia Express (K) KenolKobil Longhorn 4.90 3.90 8.30 14.20
7.50 4.55 3.65 8.00 13.70
0.75 0.35 0.25 0.30 0.50
10.00% 7.69% 6.85% 3.75% 3.65%
MANUFACTURING & ALLIED
Losers
Counter Price
EVEREADY EA K. ORCHARDS MUMIAS UNGA ACCESS SAFARICOM HOME AFRICA LIMITED
BOC Gases Pan Africa Unga Eaagads Nation Media
115.00 62.00 17.05 23.75 320.00
125.00 66.50 18.00 25.00 330.00
-10.00 -4.50 -0.95 -1.25 -10.00
-8.00% -6.77% -5.28% -5.00% -3.03%
TELECOMMUNICATION & TECHNOLOGY
GROWTH AND ENTERPRISE MARKET SEGMENT
MARKET UPDATES
TO RECEIVE NATIONMOBILE ALERTS ON YOUR CELLPHONE, SMS THE STOCK YOU WANT, E.G. STOCKS KENGEN, TO 6667. EACH ALERT COSTS SH5 ABOVE NORMAL RATES.
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MARKET DATA
Share Price Performance Scorecard
SCORECARD AS AT NAME A BAUMANN ACCESS KENYA ATHI RIVER MINING BAMBURI BARCLAYS KEN BAT KENYA BOC KENYA BRITISH AMERICAN CAR & GENERAL CARBACID INV CENTUM INV LIBERTY KENYA HOLDINGS CFC STANBIC BANK CIC INSURANCE CMC HOLDINGS CO-OP BANK CROWN BERGER DIAMOND KEN EA CABLES EA PORT CEM EAAGADS EA AFR BREW EQUITY BANK EVEREADY EA EXPRESS KEN G WILLIAMSON HUTCHINGS BIEMER HOME AFRICA LIMITED HOUSING FIN I&M HOLDING JUBILEE HLDS KAKUZI KAPCHORUA KEN ORCHARDS KENGEN KENYA AIRWAYS KENYA COM BK KENOLKOBIL KENYA POWER KENYA RE LIMURU TEA LONGHORN MARSHALL MUMIAS SUGAR NATION MEDIA NATL BANK KEN NIC BANK OLYMPIA CAPITAL PAN AFR INS REA VIPINGO SAFARICOM SAMEER AFRICA SASINI SCANGROUP STANDARD GRP STD CHART KEN TOTAL KENYA TPS (EA) TRANSCENTURY UCHUMI SUPER UNGA GROUP PREVIOUS 11.10 9.55 74.00 210.00 18.00 575.00 125.00 9.45 23.50 156.00 27.75 11.95 81.00 4.75 13.50 17.10 66.00 181.00 16.20 66.00 25.00 344.00 36.25 2.80 3.65 233.00 20.25 7.50 26.50 102.00 262.00 86.00 110.00 3.00 16.60 10.40 49.25 8.00 14.55 14.85 500.00 13.70 12.00 3.70 330.00 20.50 59.00 4.55 66.50 27.25 9.10 4.95 14.25 60.00 26.00 304.00 25.00 47.50 29.25 21.25 18.00 CLOSE 11.10 9.55 74.50 210.00 18.10 575.00 115.00 9.45 23.25 156.00 28.00 11.60 79.50 4.75 13.50 17.10 66.50 181.00 16.20 65.00 23.75 338.00 36.25 2.85 3.90 233.00 20.25 8.25 26.50 101.00 262.00 86.00 112.00 3.00 16.75 10.40 49.25 8.30 14.60 14.80 500.00 14.20 12.00 3.75 320.00 21.00 59.00 4.90 62.00 27.00 9.00 5.00 13.90 60.00 26.50 301.00 25.25 48.50 29.75 21.75 17.05 % 1D 0.00 0.00 0.68 0.00 0.56 0.00 -8.00 0.00 -1.06 0.00 0.90 3.02 -1.85 0.00 0.00 0.00 0.76 0.00 0.00 -1.52 -5.00 -1.74 0.00 1.79 6.85 0.00 0.00 10.00 0.00 -0.98 0.00 0.00 1.82 0.00 0.90 0.00 0.00 3.75 0.34 -0.34 0.00 3.65 0.00 1.35 -3.03 2.44 0.00 7.69 -6.77 -0.92 -1.10 1.01 -2.46 0.00 1.92 -0.99 1.00 2.11 1.71 2.35 -5.28 % 5D 0.00 0.00 2.05 -1.87 4.93 0.00 -8.00 12.50 8.14 1.96 4.67 2.14 8.16 3.26 0.00 5.23 2.31 0.56 0.62 8.33 13.10 -0.29 7.41 3.64 0.00 0.00 0.00 37.50 6.00 1.00 0.38 0.58 1.82 0.00 1.82 -1.89 5.91 3.11 2.82 -1.00 2.04 3.26 0.00 4.17 -2.74 5.26 3.51 0.00 0.81 3.85 1.12 0.00 4.51 0.00 1.92 0.33 32.55 5.43 4.39 8.75 0.29 % 1M 0.00 0.00 6.43 -0.47 8.06 0.00 -8.00 -3.25 -7.00 6.85 17.89 0.00 12.77 6.74 0.00 6.88 5.56 3.43 0.93 12.07 -8.65 12.67 8.21 7.55 -2.50 -6.80 0.00 -17.50 6.00 12.22 -1.13 2.38 -8.20 0.00 1.21 10.05 10.06 -1.19 -0.34 -3.58 2.04 6.74 4.35 2.74 3.23 1.20 1.72 25.64 4.20 -6.09 11.11 3.09 0.00 0.00 -2.75 2.03 40.28 -2.51 -3.25 11.83 3.02 % 3M 0.00 0.00 10.37 0.00 6.47 4.17 -0.86 -9.85 -7.00 11.43 27.27 3.91 20.45 -2.06 0.00 8.57 16.67 4.62 7.64 15.04 -9.52 2.74 9.02 1.79 4.00 1.30 0.00 0.00 2.91 3.06 9.62 7.50 -17.04 0.00 11.30 6.12 22.36 3.11 1.39 -5.43 2.04 -2.06 -7.69 -14.77 7.02 2.44 10.28 40.00 14.81 10.20 33.33 -0.99 13.93 -4.76 -10.17 4.88 52.11 2.11 -9.85 7.41 10.71
Equities & Bonds Kenya Treasury and Infrastructure Bonds

% 6M 0.00 6.70 12.03 3.45 4.62 6.28 4.55 0.00 -13.08 14.71 30.23 -6.64 23.26 -17.39 0.00 0.29 20.91 17.53 -4.42 14.04 -6.86 11.92 1.40 -10.94 -1.27 -14.96 0.00 0.00 6.00 0.00 0.00 1.18 -10.40 0.00 5.02 -5.02 16.57 -14.43 -25.51 -11.64 8.70 -17.39 -3.23 -25.00 -17.10 -7.69 11.32 12.64 -2.36 20.00 39.53 -12.28 10.32 -14.89 -24.29 -5.05 58.31 -6.73 0.00 -1.14 9.65 % 1Y 0.00 103.19 -66.59 24.26 29.29 30.09 12.75 0.00 -5.10 28.93 132.37 0.00 107.84 0.00 0.00 43.10 90.00 45.97 46.61 45.25 -56.82 46.96 57.61 62.86 -7.14 6.39 0.00 0.00 73.77 0.00 58.79 19.44 -6.67 0.00 94.77 -11.49 75.89 -43.15 -18.89 22.31 11.11 0.00 -7.69 -38.52 49.53 16.67 67.38 40.00 71.03 58.82 122.22 31.58 23.56 0.84 15.22 41.31 68.90 22.01 0.00 9.85 22.22
ISSUE DATE ISSUE NO. TWO YEAR BONDS TWO YEAR BONDS 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 FXD 3/2013/2YR FIVE YEAR BONDS FXD 4/2008/5YR FXD 1/2009/5YR FXD 1/2010/5YR FXD 2/2010/5YR FXD 1/2011/5YR FXD 1/2012/5YR FXD 1/2013/5YR FXD 2/2013/5YR SEVEN YEAR BONDS FXD 2/2006/7YR FXD 1/2007/7YR EIGHT YEAR BONDS FXD1/2006/8YR FXD1/2007/8YR NINE YEAR BONDS FXD 1/2006/9YR TEN YEAR BONDS FXD 1/2006/10YR FXD 2/2006/10YR FXD 1/2007/10YR FXD 1/2008/10YR FXD 2/2008/10YR FXD 3/2008/10YR FXD 1/2009/10YR FXD 1/2010/10YR FXD 2/2010/10YR FXD 1/2012/10YR FXD 1/2012/10YR FXD 1/2013/10YR ELEVEN YEAR BONDS FXD1/2006/11YR TWELVE YEAR BONDS FXD1/2006/12YR 28-AUG-06 28-MAY-07 13-AUG-18 13-MAY-19 3,900.95 4,864.60 14.0000 13.0000 101.7659 99.9512 25-SEP-06 11-SEP-17 4,031.40 13.7500 111.1430 27-MAR-06 29-MAY-06 29-OCT-07 29-OCT-07 28-JUL-08 29-SEP-08 27-SEP-09 26-APR-10 1-NOV-10 25-MAR-13 25-MAR-13 26-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 13-JUN-22 19-JUN-23 3,451.05 5,028.10 9,308.80 2,992.75 13,504.70 4,151.80 4,966.85 19,394.15 18,849.90 10,520.46 10,520.46 526.69 14.0000 14.0000 10.7500 10.7500 10.7500 10.7500 10.7500 8.7900 9.3070 12.7050 12.7050 12.3710 7.5447 7.1861 12.0000 105.0239 104.9510 96.4984 101.3400 95.6410 99.9706 94.1046 84.2779 81.5707 99.9777 99.9777 102.0517 200,000,000 100,000,000 450,000,000 24-APR-06 13-APR-15 2,656.90 13.5000 100.8356 27-FEB-06 26-FEB-07 17-FEB-14 16-FEB-15 3,318.80 13,764.30 13.2500 12.7500 102.7421 100.8097 25-DEC-06 30-JUL-07 16-DEC-13 21-JUL-14 2,317.95 8,269.85 12.0000 9.7500 100.2943 98.4657 27-OCT-08 21-SEP-09 24-MAY-10 30-NOV-10 31-JAN-11 28-JAN-13 29-APR-13 1-JUL-13 21-OCT-13 15-SEP-14 18-MAY-15 23-NOV-15 25-JAN-16 22-MAY-17 23-APR-18 25-JUN-18 10,007.50 13,239.10 3,060.25 14,929.20 22,083.10 17,687.98 20,165.56 12,888.00 9.5000 9.5000 6.9510 6.6710 7.6360 11.8550 12.8920 11.3050 99.9404 98.7428 92.6968 91.0294 99.9992 101.2909 104.4611 98.5554 28-NOV-11 30-APR-12 27-AUG-12 29-OCT-12 24-DEC-12 25-FEB-13 25-MAR-13 26-AUG-13 25-NOV-13 28-APR-14 25-AUG-14 27-OCT-14 22-DEC-14 23-FEB-15 23-MAR-15 24-AUG-15 23,428.25 6,418.05 16,312.35 13,786.50 20,777.16 20,468.11 19,967.33 17,927.92 22.844 13.826 11.114 12.496 12.382 12.844 12.940 12.939 101.8500 107.4578 99.4418 100.7145 101.5229 102.7499 103.0502 102.8473 MATURITY DATE ISSUED VALUE IN MILLIONS COUPON (%) TRADED YIELD (%) PREVIOUS PRICE (%) TOTAL VALUE TRADED (KSHS)
Corporate Bonds
ISSUE DATE MATURITY DATE ISSUED VALUE IN MILLIONS COUPON (%) ISSUE NO. CENTUM BOND SENIOR UNSECURED FIXED RATE AND EQUITY LINKED NOTES 26-SEP-12 18-SEP-17 CTNB.BD.18.09.17/13.50 26-SEP-12 18-SEP-17 CTNB.BD.18.09.17/12.75 CONSOLIDATED BANK OF KENYA LTD MEDIUM TERM NOTE PROGRAMME 30-JUL-12 CON.BD-FXD(SN)/2012/7YR 30-JUL-12 CON.BD-FXD(SBN)/2012/7YR 30-JUL-12 CON.BD-FR(SN)/2012/7YR SHELTER AFRIQUE MEDIUM TERM NOTES 11-JUL-11 FR 1/2011/3YR 11-JUL-11 FXD 1/2011/3YR 17-DEC-12 FXD 2/2012/3YR PTA BANK LTD FLOATING RATE BOND 15-OCT-07 FR(MTN)/2007/7YR BARCLAYS BANK MEDIUM TERM FLOATING RATE NOTES 19-NOV-07 FR (MTN)/2007/7YR 14-JUL-08 FXD (MTN)/2008/7YR 14-JUL-08 FR (MTN)/2008/7YR MRM 27-OCT-08 FR (MRM) 2008/8YR 27-OCT-08 FXD (MRM) 2008/8YR CFC STANBIC BANK SENIOR & SUBORDINATED BOND ISSUE 7-JUL-09 FR (CFC STANBIC) 2009/7YR 7-JUL-09 FXD (CFC STANBIC) 2009/7YR 27-DEC-10 FXD2 (CFC STANBIC) 2010/4YR KENGEN PUBLIC INFRASTRUCTURE BOND OFFER 2019 2-NOV-09 FXIB 1/2009/10YR 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 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 24-JUL-19 22-JUL-19 22-JUL-19 7-JUL-14 7-JUL-14 14-DEC-15 31-OCT-14 19-NOV-14 14-JUL-15 14-JUL-15 17-OCT-16 17-OCT-16 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 2,917.10 1,250.80 1,480.60 196.50 1.00 1,416.79 1,083.21 500.00 600 1,500 1,300 700 621.50 1,378.50 97.91 2,402.09 2,500.00 20,312.50 463.40 7,049.60 5,000.00 2,969.10 1,166.50 5,864.40 13.50% 12.75% 13.25% 13.60% 99.9718 100.0000 PREVIOUS PRICE (%) TOTAL VALUE TRADED (KSHS)
FXD1/2007/12YR FIFTEEN YEAR BONDS FXD1/2007/15YR FXD2/2007/15YR FXD3/2007/15YR FXD1/2008/15YR FXD1/2009/15YR FXD1/2010/15YR
26-MAR-07 25-JUN-07 26-NOV-07 31-MAR-08 26-OCT-09 29-MAR-10 25-APR-11 24-SEP-12 29-JUL-13 29-APR-13 29-APR-13
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 10-APR-28 10-APR-28
3,654.60 7,236.95 18,030.20 7,830.90 9,420.45 10,206.45 13,513.10 21,089.45 6,337.38 15,646.23 15,646.23
14.5000 13.5000 12.5000 12.5000 12.5000 10.2500 9.0000 11.0000 11.2500 12.0000 12.0000 12.9500 13.0000
111.8443 100.9631 99.9558 99.7240 99.3789 83.2209 71.4185 86.8651 88.1210 92.0947 92.0947 200,000,000 200,000,000
12.50% 12.75%
100.0000 99.9685
FXD2/2010/15YR FXD1/2012/15YR FXD1/2013/15YR
100.0000 100.0000 94.8034
FXD2/2013/15YR FXD2/2013/15YR
11.50%
TWENTY YEAR BOND FXD1/2008/20YR FXD1/2011/20YR 30-JUN-08 30-MAY-11 27-MAY-13 5-JUN-28 5-MAY-31 1-NOV-32 20,360.35 9,365.80 4,389.35 13.7500 10.0000 12.3500 102.8212 77.9844 91.3300
13.00%
100.0000 100.0549 100.0000 99.1689 88.4609 99.9823 100.0000 99.9555 99.9945 96.6883 100.0000 100.0000
FXD1/2012/20YR
TWENTY FIVE YEAR BOND FXD1/2010/25YR THIRTY YEAR BOND SDB 1/2011/30YR 28-FEB-11 21-JAN-41 22,136.45 12.0000 89.1725 89.1190 8-FEB-21 22-NOV-21 19-FEB-18 19-SEP-19 18-SEP-23 15-SEP-25 19,726.85 18,897.65 15,908.05 32,871.55 14,138.75 19,924.26 12.5000 12.0000 9.7500 6.0000 12.0000 11.0000 101.3727 101.9029 93.9685 84.4081 99.9919 95.2518 28-JUN-10 28-MAY-35 20,192.50 11.2500 85.4733
12.50% 7.25% 12.50%
INFRASTRUCTURE BONDS IFB 1/2009/12YR IFB 2/2009/12YR IFB 1/2010/8YR IFB 2/2010/9YR 23-FEB-09 7-DEC-09 1-MAR-10 31-AUG-10 3-OCT-11 30-SEP-13
12.25% 7.75% 13.00% 8.50%
IFB 1/2011/12YR IFB 1/2013/12YR
25
MARKET DATA
Global Markets & 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 85.29 136.07 115.19 8.55 29.64 18.77 7.78 17.85 23.22 81.99 93.63 87.26 13.19 14.23 15.43 1.37 11.00 68.09 22.74 13.94 80.30 SELL 85.49 136.31 115.49 8.58 29.83 18.93 7.89 18.48 23.28 82.21 93.87 87.62 13.23 14.26 15.47 1.38 11.02 68.25 22.80 13.97 80.49 MEAN 85.39 136.19 115.34 8.56 29.73 18.85 7.83 18.17 23.25 82.10 93.75 87.44 13.21 14.24 15.45 1.37 11.01 68.17 22.77 13.95 80.39
Currencies
Europes Blue Chips

Based on one day performance in local currency
% PERFORMANCE IN LOCAL CURRENCY COMPANY BANCO SANTANDER S.A. NATIONAL GRID HSBC HLDGS LLOYDS BANKING GROUP PLC ENI STANDARD CHARTERED BG GRP DEUTSCHE BANK TOTAL BHP BILLITON UNILEVER ING GROEP GLAXOSMITHKLINE RECKITT BENCKISER GRP ALLIANZ SE BP PLC BARCLAYS ANHEUSER-BUSCH INBEV BASF BRITISH AMERICAN TOBACCO DEUTSCHE TELEKOM BAYER SCHNEIDER ELECTRIC MOET HENNESSY LOUIS VUITT ROYAL DUTCH SHELL A NESTLE RIO TINTO CREDIT SUISSE GROUP AG UNILEVER CVA TELEFON L.M. ERICSSON B SAP DAIMLER UBS SIEMENS NOVARTIS AG ASTRAZENECA LAIR LIQUIDE DIAGEO ABB GLENCORE XSTRATA PLC COUNTRY SPAIN UNITED KINGDOM UNITED KINGDOM UNITED KINGDOM ITALY UNITED KINGDOM UNITED KINGDOM GERMANY FRANCE UNITED KINGDOM UNITED KINGDOM NETHERLANDS UNITED KINGDOM UNITED KINGDOM GERMANY UNITED KINGDOM UNITED KINGDOM BELGIUM GERMANY UNITED KINGDOM GERMANY GERMANY FRANCE FRANCE UNITED KINGDOM SWITZERLAND UNITED KINGDOM SWITZERLAND NETHERLANDS SWEDEN GERMANY GERMANY SWITZERLAND GERMANY SWITZERLAND UNITED KINGDOM FRANCE UNITED KINGDOM SWITZERLAND UNITED KINGDOM INDUSTRY BANKS MULTIUTILITIES BANKS BANKS INTEGRATED OIL&GAS BANKS INTEGRATED OIL&GAS BANKS INTEGRATED OIL&GAS GENERAL MINING FOOD PRODUCTS LIFE INSURANCE PHARMACEUTICALS NONDURABLE HOUSEHOLD PRODUCTS FULL LINE INSURANCE INTEGRATED OIL&GAS BANKS BREWERS COMMODITY CHEMICALS TOBACCO MOBILE TELECOMMUNICATIONS SPECIALTY CHEMICALS ELECTRICAL COMPONENTS&EQUIPMENT CLOTHING&ACCESSORIES INTEGRATED OIL&GAS FOOD PRODUCTS GENERAL MINING BANKS FOOD PRODUCTS TELECOMMUNICATIONS EQUIPMENT SOFTWARE AUTOMOBILES BANKS DIVERSIFIED INDUSTRIALS PHARMACEUTICALS PHARMACEUTICALS COMMODITY CHEMICALS DISTILLERS&VINTNERS INDUSTRIAL MACHINERY GENERAL MINING LAST 6.35 743.5 668.8 72.92 17.2 1436 1157.5 33.98 43.07 1771.5 2351 8.51 1550 4270 CHG % CHG 0.09 8 4.3 0.4 0.09 7.5 3 0.07 0.08 3 2 0.01 0.5 1 1.36 1.09 0.65 0.55 0.53 0.53 0.26 0.19 0.19 0.17 0.09 0.07 0.03 0.02 ... -0.06 -0.15 -0.21 -0.21 -0.22 -0.22 -0.25 -0.28 -0.49 -0.55 -0.57 -0.64 -0.65 -0.65 -0.65 -0.67 -0.69 -0.72 -0.88 -0.89 -0.95 -1.07 -1.14 -1.34 -1.45 1-WK 0.32 ... -1.25 -2.66 ... -0.62 -1.07 -1.95 0.41 -1.83 -0.63 -3.02 -0.39 -1.91 -0.3 -1.1 -1.31 -2.34 -1.22 0.22 -0.67 -2.31 -0.67 -2.11 -2.26 -1.93 -1.74 -2.13 -1.06 -2.17 -3.53 -1.14 -3.02 -1.99 -2.77 -2.17 -2.25 -2.51 -1.99 -2.55 YTD 7.2 5.8 3.4 52.2 -6.2 -8.7 14.3 3.1 9.5 -16.8 -0.6 20.5 16.1 10.1 11.7 2 2.1 7.8 -1.8 2.7 30.6 17 10.7 3 -6.4 2.3 -15.8 25.4 -4.6 28.2 -14 38.8 26.1 7.9 15.9 7 3.6 6.3 10.3 -8.2 52-WK 15.2 7.44 13.16 97.05 -2.16 2.61 -11.44 6.37 12.18 -8.47 1.73 33.13 7.23 18.68 28.5 -0.95 20.88 4.1 9.08 -0.4 21.92 24.15 25.74 21.13 -7.86 -0.08 -2.39 35.67 -1.22 43.76 -2.43 51.45 53.85 13.66 14.14 7.77 4.16 6.68 16.18 -4.15
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 XSTRA/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 LAST 1,462.50 1,907.00 1,202.00 381.20 1,494.00 1,059.00 843.50 972.00 397.10 424.30 3,125.50 446.20 272.90 3,220.00 1,164.00 580.00 1,776.50 1,316.00 435.44 1,582.00 862.00 344.80 2,035.00 365.60 844.50 981.00 2,595.00 1,475.00 362.40 1,901.00 81.50 218.10 129.80 1,150.00 933.25 237.90 352.70 328.25 1,553.50 496.80 987.00 678.25 363.10 334.50 1,793.00 1,484.00 2,193.00 3,190.00 181.60 2,766.00 248.40 368.00 927.00 190.20 74.06 535.50 470.90 275.40 744.00 4,952.00 186.30 1,348.00 608.50 1,162.00 1,276.00 4,310.00 380.24 2,003.50 2,099.50 826.50 477.70 2,985.50 1,102.00 4,322.00 117.20 324.80 2,988.00 387.40 2,554.00 2,157.00 318.80 2,387.00 340.30 1,343.00 764.50 530.50 1,461.95 1,448.00 1,763.00 752.50 983.00 354.25 2,354.00 694.00 1,009.00 215.73 2,275.00 3,156.00 1,236.00 3,091.00 CLOSE 1,448.50 1,889.00 1,195.00 372.90 1,461.00 1,050.00 830.50 945.50 392.20 419.50 3,113.00 440.00 267.80 3,205.00 1,157.50 568.00 1,771.50 1,295.00 433.45 1,550.00 859.50 342.70 2,030.00 360.80 829.50 967.50 2,570.00 1,443.00 361.10 1,899.50 78.90 219.50 127.30 1,144.00 932.00 239.00 343.20 322.55 1,550.00 492.00 981.50 668.80 356.60 326.70 1,785.00 1,447.00 2,174.00 3,153.00 178.90 2,714.00 246.00 364.80 916.50 186.50 72.92 528.50 468.70 274.40 743.50 4,940.00 184.20 1,336.00 594.00 1,138.00 1,254.00 4,270.00 369.70 1,987.00 2,077.50 821.50 475.80 2,957.50 1,082.00 4,295.00 116.20 320.50 2,968.00 384.20 2,493.00 2,116.00 312.90 2,387.00 333.20 1,322.00 755.50 522.50 1,454.00 1,436.00 1,754.00 742.00 975.50 354.75 2,351.00 688.50 1,020.00 215.00 2,233.00 3,097.00 1,215.00 2,992.00 NET.CHNG 14.00 18.00 7.00 8.30 33.00 9.00 13.00 26.50 4.90 4.80 12.50 6.20 5.10 15.00 6.50 12.00 5.00 21.00 1.95 32.00 2.50 2.10 5.00 4.80 15.00 13.50 25.00 32.00 0.10 1.50 2.60 -1.40 2.50 6.00 0.00 -1.10 9.50 5.70 3.50 4.80 5.50 9.30 6.50 7.80 8.00 37.00 19.00 37.00 2.70 52.00 2.40 3.20 10.50 3.70 1.14 7.00 2.20 1.00 0.50 12.00 2.10 12.00 14.50 24.00 22.00 40.00 10.50 16.50 22.00 5.00 1.90 28.00 20.00 27.00 1.00 4.30 20.00 3.20 61.00 41.00 5.90 0.00 7.10 21.00 9.00 8.00 8.00 12.00 9.00 10.50 7.50 -0.50 3.00 6.00 -11.00 0.75 42.00 59.00 21.00 99.00 PCT.CHNG 0.97% 0.95% 0.59% 2.23% 2.26% 0.86% 1.57% 2.80% 1.25% 1.14% 0.40% 1.41% 1.90% 0.47% 0.56% 2.11% 0.28% 1.62% 0.45% 2.06% 0.29% 0.61% 0.25% 1.33% 1.81% 1.40% 0.97% 2.22% 0.03% 0.08% 3.30% -0.64% 1.96% 0.52% 0.00% -0.46% 2.77% 1.77% 0.23% 0.98% 0.56% 1.39% 1.82% 2.39% 0.45% 2.56% 0.87% 1.17% 1.51% 1.92% 0.98% 0.88% 1.15% 1.98% 1.56% 1.32% 0.47% 0.36% 0.07% 0.24% 1.14% 0.90% 2.44% 2.11% 1.75% 0.94% 2.84% 0.83% 1.06% 0.61% 0.40% 0.95% 1.85% 0.63% 0.86% 1.34% 0.67% 0.83% 2.45% 1.94% 1.89% 0.00% 2.13% 1.59% 1.19% 1.53% 0.55% 0.84% 0.51% 1.42% 0.77% -0.14% 0.13% 0.87% -1.08% 0.35% 1.88% 1.91% 1.73% 3.31%
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 KAZAKHSTAN TENGE LITHUANIA LITAS LATVIAN LATS MOLDOVAN LEU MACEDONIA DENAR MALTESE LIRA ROMANIAN LEU SLOVAK KORUNA SERBIAN DINAR ARMENIAN DRAM 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 1.35 97.84 1.59 0.91 1,298.20 21.76 0.94 1.04 6.51 6.04 5.51 32.32 1.98 121.95 3.10 18.89 218.69 8.18 3.55 104.50 1.43 1.45 59.99 0.40 11.70 1.66 1.59 5.62 154.17 2.55 0.52 13.13 45.45 3.41 3.30 21.55 84.11 406.41 97.34 1,526.30 0.12 908.50 80.27 174.70 81.35 6.89 14.78 18.85 9,254.25 32.10 6,780.00 85.60 364.00 74.00 9.94 1.24 8.28 2,235.00 293.00 30.40 358.00 29.40 160.77 665.00 11.88 200.02 2,025.50 1.59 4,290.00 17,561.00 1,193.00 9.94 1.64 1,604.00 2,545.00 484.82 484.89 9.96 5,185.00 378.00 ASK 1.35 97.85 1.59 0.91 1,298.95 21.81 0.94 1.04 6.51 6.05 5.51 32.33 1.98 122.22 3.10 18.90 218.78 8.19 3.56 104.75 1.47 1.45 60.19 0.40 11.71 1.59 5.63 154.22 2.55 0.52 13.23 45.54 3.42 3.30 21.60 84.53 408.41 97.84 1,576.30 0.12 938.50 81.77 81.93 6.89 19.03 9,280.15 33.10 7,280.00 85.70 365.00 76.00 9.97 1.26 8.29 2,285.00 303.00 30.60 378.00 29.80 160.87 676.00 12.20 201.02 2,035.60 1.60 4,365.00 18,654.00 1,293.00 9.99 1.65 1,614.00 2,550.00 487.82 488.89 9.96 5,205.00 381.00
117.05 UNCH. 433.45 267.8 70.9 69.9 3205 11.12 84.11 60.68 143.6 1987 60.95 2957.5 27.63 27.52 83.45 52.2 57.34 18 88.71 66.6 3113 98.48 1899.5 20.68 322.55 -0.25 -0.4 -0.15 -0.15 -7 -0.03 -0.21 -0.17 -0.7 -11 -0.35 -19 -0.18 -0.18 -0.55 -0.35 -0.4 -0.13 -0.79 -0.6 -30 -1.07 -22 -0.28 -4.75
Global Indices
NAME DJ INDU AVERAGE FTSE EUROTOP 100 XETRA DAX PF CAC 40 INDEX FTSE MIB/D SMI PR HANG SENG INDE/D NIKKEI 225 INDEX ALL ORDINARIES STRAITS TIMES/D SSE COMPOSITE/D S&P SENSEX LOCATION NEW YORK LONDON FRANKFURT PARIS ITALY SWITZERLAND HONG KONG TOKYO AUSTRALIA SINGAPORE SHANGHAI MUMBAI LAST 14,802.98 2,514.15 8,621.98 4,188.54 18,857.95 7,827.09 22,951.30 14,194.71 5,146.21 3,169.91 2,190.93 20,246.55 NET.CHNG 26.45 24.81 105.29 61.49 306.38 71.83 -82.67 156.87 -5.35 15.07 -20.84 -2.71 PCT.CHNG 0.18% 1.00% 1.24% 1.49% 1.65% 0.93% -0.36% 1.12% -0.10% 0.48% -0.94% -0.01% OPEN 14,778.19 2,489.91 8,563.39 4,158.08 18,672.91 7,776.83 23,077.47 14,097.62 5,151.60 3,167.92 2,214.40 20,228.76 HIGH 14,852.50 2,515.88 8,622.19 4,189.35 18,864.56 7,834.33 23,084.10 14,200.31 5,151.60 3,176.77 2,214.59 20,323.77 LOW 14,719.43 2,489.91 8,547.72 4,148.42 18,635.54 7,766.49 22,743.47 14,077.03 5,126.90 3,161.91 2,186.48 CLOSE 14,776.53 2,489.34 8,516.69 4,127.05 18,551.57 7,755.26 23,033.97 14,037.84 5,151.55 3,154.84 2,211.77
20,135.91 20,249.26
26
exta
BUSINESS TALK
SCOTT BELLOWS
ENTREPRENEUR: Designe Anabelle Thom adds edge to Afican accessoies

Page 28
LEISURE: Upcoming visual ats galas attest to Kenya coming of age

Page 31
Ceate job desciptions that inspie you employees

the normal course of business. An employee cannot do the same repetitive task all day every day and still perform properly. The employee becomes bored, like Lokori, and performance declines. To combat boredom, managers struggle with a balance between weighing whether a job should encompass rotation skills or enlargement skills. One solution at a manufacturing plant might entail a worker rotating between running a processor machine on Monday, doing site inspections on Tuesday, and cleaning equipment on Wednesday. But the manager may provide the employee with enlarged responsibilities where he or she must operate processor machines, clean the equipment and conduct site inspections. In the enlarged role, the employee decides when to conduct each task.
PLANNING
Use these ve core job characteristics to create lead the critical psychological states for employees, which can then lead to positve outcomes
okori nds himself often distracted at his job. While he felt great excitement when he initially took the position, it quickly became mundane. Lokori stares o longingly out of the window of his oce dreaming of his weekend plans with his family. He worries whether something wrong exists in his work ethic or the issue could be temporary. He fears the loss of his job if his others notice his diverted attention. Unbeknown to Lokori, his boss Barsosio notices a motivation gap among many employees in her division. Her divisions performance also constantly lags the rest Task identity and she wonders whether the motivation Do the tasks you assign to your employees issues directly correlate to the poor per- identify with them? Do the employees nd identity in the tasks? formance. Do the tasks t with their skill level, So, while Lokori suers in silence, personality and interests? others in the same division struggle with a comFosteing Task signicance mon workplace mistake: appopiate Do the tasks contain any sigpoorly assembled job descriptions. nicance? employee If the tasks seem meaningless Experienced managfeelings leads to to the employee, then he or she ers learn over time that solid individual will not desire to perform them. designing a stimulating Emphasise the critical nature job description requires outcomes, of tasks and frequently inform a delicate balancing act. including wok employees how those tasks Job design presents motivation and contribute to the success of the managers with tough decisions involving a three company and the of employee gowth stage process. individually. A job description contains core job characteristics that lead to Autonomy critical psychological states for employees, Managers must remember to provide auwhich then lead to outcomes, such as the tonomy to their employees. Everyone hates working for a micromanager. rms collective prots. A leader who constantly watches their The tricky dilemma as a manager entails stimulating the right psychological employees and requires them to frequently responses that lead to outcomes. This is check in for approvals and verications done through use of the core job charac- signicantly ruins sta motivation. Instead, provide employees the freedom teristics. The ve critical components to core job to nd their own solutions to problems. characteristics involve: skill variety, task Let them fail or succeed based on their reidentity, task signicance, autonomy, and sults, not based on your overbearing eyes. feedback from the job. Though, you must monitor results, do so with respect and distance.
Experienced managers learn over time that designing a stimulating job description is a delicate balancing act but which results in work motivation, effectiveness and satisfaction. FILE
Skill variety
The manager must determine the range of skills that an employee should use during
Feedback
Most organisations provide feedback on
job performance in ridiculous annual performance reviews that actually hurt individual and company performance. Helpful feedback should, instead, incorporate regular formal and informal meetings between supervisor and employee. The regular meetings incorporate coaching that focuses on the employees success. Ideally, managers should meet employees monthly, but at least quarterly for coaching sessions. Managers who walk around the establishment and informally mingle with sta and observe production or services, as opposed to micromanage, realise higher performance results. Proper job characteristics create feelings of meaningfulness, responsibility and knowledge of ones results. Employees without these three psychological states do not possess the right
mind-frame to succeed. Monitor your employees feelings through surveys, observations and trends, such as absenteeism and tardiness for example. Fostering the appropriate employee feelings and psychology leads to solid individual outcomes, including work motivation, growth satisfaction, general life satisfaction and work eectiveness. The four combined outcomes lead to higher company performance and prots. Prof Scott serves as the director of the New Economy Venture Accelerator at USIUs Chandaria School of Business and Colorado State University, www.usiu.ac.ke/gsse, and may be reached on: bscott@usiu.ac.ke or @ScottProfessor
Read current and prior Business Talk articles on the Business Dailys website and www.usiu.ac.ke/blog/businessdaily. Next week we explore Self Leadership
27
WEEKEND EXTRA
BOOKS
NEW YORK TIMES
David and Goliath explains that giants too have weaknesses

lems, which might explain why he world becomes less com- Goliath had an attendant to lead plicated with a Malcolm him. Maybe that led him to misjudge Davids power. Maybe the IsGladwell book in hand. Gladwell raises questions raelites watched from a distorting should David have won his ght vantage point that made Goliath with Goliath? that are reassur- look excessively big, David excesingly clear even before they are sively puny. answered. Do we see the relevance of His answers are just tricky these thoughts to our daily lives? enough to suggest that the reader Not yet? Then consider the tihas learned something, regardless tle of this three-part books rst of whether that is true. section: The Advantages of DisA recent posting on Goodreads, advantages (and the Disadvana website that bolsters enthusi- tages of Advantages). This turns asm for books and reveals rea- out to be much more blunt than sons readers like them, lauds the it sounds. power of Gladwells entertaining During the course of a multiinsights into the not quite obvious. part, one-note argument, Gladwell Do you really want to be surprised demonstrates that short teenage all the time? a commenter identi- girls playing basketball and a ed as Dr A Taubman asked this schoolteacher with a 29-student week about classroom could make Gladwells latseemingly adverse est, David and circumstances work Gladwell needs Goliath? to their advantages. a David-Goliath The world The girls learned to school stoy, so he is disconcertdominate the courts ceates one. His ing enough on which they played. already. And the teacher liked vesion happens the variety of that seemAs Gladto have common ingly overcrowded well species, sense on its side, David and Goclassroom. liath sets out His advice: Ignore even if it is in no school ratings. Be a big to explore two way denitive o sh in a small pond. ideas. complete Who wants to be a The rst is guppy at Harvard? that there is As usual, Gladgreatness and beauty in David-Goliath ghts, at wells science is convenient. He least when the underdog wins. has charts to back up his premise The second is that we consist- about academic success, but how ently get these kinds of conicts is success measured? In happiwrong by failing to realise that ness? Salary? Getting jobs, or giants have weaknesses, and that keeping them? underdogs can accomplish the unGladwell needs a David-Goliaexpected. th school story, so he creates one. If David and Goliath were a His version happens to have commore serious book, it would have mon sense on its side, even if it is in to apply that thought to terrorism. no way denitive or complete. But, as Taubman implies, Gladwell The books middle section is its is not in the business of providing messiest. It scrambles through the disturbing information. stories of the trial lawyer David Instead, his emphases are on Boies, lm producer Brian Grazer, uplift and novelty. So he analyses the Goldman Sachs president Gary the David-Goliath bout, com- Cohn, the pioneering leukemia onparing the eects of slingshots cologist Jay Freireich and the civil to those of sword and spear. He rights leaders who, according to lauds Davids little-guy maneu- Gladwell, successfully conned Eugene Connor, the white supremaverability. And he suggests that Goliath, cist public safety commissioner of like scientically studied giants, Birmingham in 1963. The disproportionate gravity of might have had acromegaly, a growth disorder that would have these examples borders on insult, meant a pituitary tumour, which but it is Gladwells gift to paste tocould have created vision prob- gether the incongruous.
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THE BOOK SHELF
Bestselle list
HARDCOVER FICTION 1. DOCTOR SLEEP, by Stephen King. (Scribner) 2. THE LONGEST RIDE, by Nicholas Sparks. (Grand Central) 3. THE LOWLAND, by Jhumpa Lahiri. (Knopf) 4. THE QUEST, by Nelson DeMille. (Center Street) 5. NEVER GO BACK, by Lee Child. (Delacorte) 6. W IS FOR WASTED, by Sue Grafton. (Marian Wood/ Putnam) 7. DEADLINE, by Sandra Brown. (Grand Central) 8. THANKLESS IN DEATH, by J.D. Robb. (Putnam) 9. THE FINAL CUT, by Catherine Coulter and J.T. Ellison. (Putnam) 10. INFERNO, by Dan Brown. (Doubleday) 5. LEAN IN, by Sheryl Sandberg with Nell Scovell. (Knopf) 6. THE LIBERTY AMENDMENTS, by Mark R. Levin. (Threshold Editions) 7. HAPPY, HAPPY, HAPPY, by Phil Robertson with Mark Schlabach. (Howard Books) 8. EMPTY MANSIONS, by Bill Dedman and Paul Clark Newell Jr. (Ballantine) 9. SIMPLE DREAMS, by Linda Ronstadt. (Simon & Schuster) 10. COMMAND AND CONTROL, by Eric Schlosser. (Penguin Press) Grau) 2. PROOF OF HEAVEN, by Eben Alexander. (Simon & Schuster) 3. OUTLIERS, by Malcolm Gladwell. (Back Bay/Little, Brown) 4. THE IMMORTAL LIFE OF HENRIETTA LACKS, by Rebecca Skloot. (Broadway) 5. QUIET, by Susan Cain. (Broadway) 6. WILD, by Cheryl Strayed. (Vintage) 7. HOW CHILDREN SUCCEED, by Paul Tough. (Mariner/ Houghton Mifin Harcourt) 8. BRAIN ON FIRE, by Susannah
NON-FICTION 1. KILLING JESUS, by Bill OReilly and Martin Dugard. (Holt) 2. SI-COLOGY 1, by Si Robertson with Mark Schlabach. (Howard Books) 3. ZEALOT, by Reza Aslan. (Random House)
4. STILL PAPER BACK FOOLIN EM, by 1. ORANGE IS THE NEW BLACK, Billy Crystal. ( by Piper Kerman. (Spiegel & Holt)
28
WEEKEND EXTRA
Designe Annabelle Thom adds edge to Afican accessoies

CREATIVE Nairobi-based entrepreneur makes
handcrafted hats, bags, belts and jewellery

raw materials including the sturdy and rich leather, the cotton, curio adornments ince she made her rst bush hat 15 and beading are sourced locally. Foryears ago, Annabelle Thoms days jewellery and embellishments on bags have been all about buying raw and other accessories Ms Thom uses materials, designing and building one brass, horn, aluminium and colourful of Kenyas most recognised accessories beads. Fashion is all about change and keepfashion house, which bears her name. Ms Thom has been described as an el- ing things new and fresh. I do have my egant, quirky and passionate woman. classic designs that people like and expect Her passion has put together her to nd, but I always come up with new bush-loving romanticism, entrepreneur- creations which keep our brand excitial skills and deep appreciation of the in- ing. I also think our clients know that dividual skills of her team we pay particular attento come up with products tion to our stitching and that are handcrafted and nishing and will always Inspied by made with great attention come back knowing they he wok in the to detail, quality and indiare buying the best, she viduality that exemplify says. wild, the bush boho shabby chic. Ms Thom introduces hat was the st three bag collections per In the end, she has year. She has just nished created a range of bags, thing that came a Kitenge collection combelts, hats and jewellery, to mind, thanks prising large tote bags with a fusion of African to he eye fo and small clutch bags. heritage and European The collection is renement. fashion about vibrancy, colour, I have always had a simplicity, ready-to-wear passion for handbags. I think they make an outt and aordability. and its always the accesMs Thom says she sories that stand out. You can never have draws her inspiration from the beauty too many hand bags. and the chaos of life; from the colour and I have kept the designs of the hats textures of her surroundings. ... from nature and its neutral palette classic as there is always a market for them. Jewellery is also my passion. I of taupes, shades of green, browns to the would say I am an accessories design- vibrancy and colour of a market place. er belts and bags are my thing, she An idea will ash in my head, a shape or a colour combination and I write it down says. The signature mark of an Annabelle or draw it and then give it a life of its own Thom piece is its nishing. And all the as it becomes something to hold.
BY MWIKALI LATI
Designer Annabelle Thom (centre) with her shop attendants, Doris Makandi (left) and Silvia Namusi Oino at the Junction Shopping Mall.
COURTESY
Annabelle Thoms brass and glass beads bracelets and left, brass bangles. COURTESY
Some bags from the Kitenge Collection on display at the Junction Shopping Mall shop. COURTESY
Ms Thom rst came to Kenya from England in 1994 to work with wildlife. In 1997, following the birth of her son, came the birth of her business. Inspired by her work in the wild, the bush hat was the rst thing that came to mind. Thanks to her eye for fashion, which she developed in her four years working as a buyer for a boutique in Londons West End, Ms Thom was well on her way to building a successful fashion business. The business evolved from making custommade bush hats to creating items with a little bit of an edge and the individuality that Annabelle Thom is known for. I started it to be nancially independent. I am thrilled that it has grown to where it is now, she says. Ms Thom lived in Naivasha for another six years then moved to Nairobi to grow her business further. She opened her rst shop at the Warwick Centre in Gigiri. Now, her company employs 15 in a workshop and she works with more than 30 independent artisans who freelance and provide their unique skills to what is now a luxe lifestyle mix of gorgeous accessories. Eight years ago, she moved the shop to the Junction Shopping Mall on Ngong Road.
Ms Thom also supplies to other shops and hotels around Nairobi as well as to lodges and camps around the country and globally. She says she has faced challenges over the years, but she has tackled each problem as it comes along and not let them get on top of her. And what she loves most about your work? I love taking a piece of leather, having an idea and watching the idea turn into a beautiful nished product. I love that I can make something, a bag for example that makes a woman feel good about herself when she wears it, says Ms Thom. Her plan is to expand her business and open more shops countrywide. mwikalilati@gmail.com
29
WEEKEND EXTRA
How to get the most out of telecommutes

Several studies have shown that people who work from home have a higher level of motivation, take more responsibility for results, and work as hard, if not harder than those in an oce. A key benet with distributed teams is that it is only the most selfmotivated, communicative and balanced thinkers who are ready for that model and those are exactly the type of employees you want to hire anyhow. The following principles will help you successfully managing a distributed workforce: In personal encounters, we may be kind and understanding, but in our emails, we can be coldly rational or overly critical. Body language can soften the over-rationality and edginess of our words. But when you are online, that gets lost. When you communicate with colleagues almost entirely online, be mindful of this. Its why we need emoticons. To get people excited and inspired through online communication, focus on seeing the positive aspects of things, and make an extra eort to understand what people really intend, though their communication may be terse.
Everyone can be successful as success isnt about smarts or talent; its about self-awareness and persevering to achieve what you have set your heart and mind on.FILE
You have it within you to be successful and happy

CORPORATE COACH
SERAPHINE RULIGIRWA-KAMARA
1. Communicate a clear shared purpose. Every member of the

team must share a common vision and culture. Make sure everyone is marching in the same direction. When they know the purpose of the business, they can make the right decisions on their own.
4. Hire people who can write. No

matter how you manage a virtual team and no matter what amazing new online tools you use, there is by necessity a higher focus on written communication than in local organisations. Thats why you need to hire people who enjoy and are relatively good at communicating through writing. While you should use phone, video and other media to communicate, there will always be a core communication conducted through email.
2. Encourage personalities to shine online. Starting from the

leaders, you must go all-in when it comes to online presence. Its not enough to share your business communication online. You must share your personality too. In a physical oce, colleagues get to see the personal side of each other in the parking lot, the kitchen, and so on. In a distributed organisation, you need to cultivate those same social aspects online. Encourage people to display their personality and their vulnerabilities and talk about their non-job activities. Let people be people.
INSPIRATION The treasure that most of us
keep seeking in jobs, family, religion or wealth can be found inside us in our minds
Success isnt about smarts or talent; its about self-awareness and perseverance. By accepting this simple truth, we can nally stop wasting our time on energy-guzzling sprints we take across the elds of our lives; the shortcuts that simply cut short the possibility of lasting and replicable success. I watched on television the story of a man digging a whole in his bedroom searching for German treasure with sadness. There are no magical answers out there that are hiding under someones bedroom. His real treasure lies within him in his mind. Digging that hole is just a shortcut thats making his already diminished life even shorter. We are all digging some hole to nd treasure thats buried somewhere outside of us. Where does your treasurehunt send you digging holes your job, family, church, mosque or under some holy tree? Let me guess youre digging into your friends or better still, your wallet. Stop the digging. Look in the mirror. See that being looking blankly back at you? Thats where your treasure lies. Now dig away. Ms Ruligirwa-Kamara is a LifeSuccess certied coach on personal leadership development. Email: seraphine@ seraphineconsulting.com
5. Encourage openness. To allow people to feel a common purpose and trust one another despite physical distances, encourage people to be transparent and inclusive. Information and insight should travel fast and wide. People need to trust that they are not being excluded.
- ENTREPRENEUR.COM
These chosen few have understood ou certainly know people who that their best lives lie in living life as a are much nicer, more agreeable, marathon. They do no sprints. happier, healthier and certainly Any seasoned entrepreneur will tell more successful than the rest of us. Can you that if youre going to win in any you think of the reason they do it every way, you must do the work and stick moment of every day? around long enough for it to pay o. They wake up every Monday to It is passion and perseverance for the spend quiet time on their own, exer- long haul. cise or read a stimulating book, they eat I cannot belabour this enough behealthy and are perfectly ready to pro- cause we all develop rust around our ductively engage with the intellectual joints, but it world while the rest of us is not this rust that saboare still rolling in bed. tages us. Its the rust in Thee ae no our subconscious minds They are focused and magical answes are serial achievers. They that works against us. out thee that give their service without And we were not born expectations and receive with that rust. When we ae hiding much in return. They do were little, we werent unde someones the same on Tuesday and rusty in the joints or our bedoom Wednesday and by the subconscious. As we grew older, the rust started to weekend when we think develop in all our inteltheyre going to slack because thats what we do, they do it lectual joints and nally spread to twice. Year in, year out, they maintain our minds the control tower of our these nearly sacred rituals and ways thoughts, which becomes our feeling, translating into our actions and nally of being. They can be quite annoying these transmuting into the reality we experipeople, cant they? Only that we admire ence as our lives. them. We envy their ability to wave their It takes most of us several years, even magic wands and have every aspect decades of banging our heads against of their lives simply t perfectly. the wall, thinking, feeling and acting You know these people. They are the same thing over and over while exsuccessful, calm and self-assured, no pecting dierent, improved and more matter what. Indeed, they know some- satisfying lives. If thats not mental illthing the rest of us dont. ness, educate me on what is.
3. Dont forget to be empathetic.
You must go all-in when it comes to online presence, to be empathetic, communicate clearly and fast and let your personality shine. FILE
30
WEEKEND EXTRA
Upcoming at galas poof Kenya is coming of age

LEISURE Events include a
contemporary art auction and the Kenya Museum Societys art fair
BY MARGARETTA WA GACHERU
Over the next month, no less than three grand gala events will take place collectively conrming the fact that Nairobi has become the hub, not just of IT development, but of East Africas thriving visual arts scene. More than that, all three galas are generating a global buzz as witnessed Auction 2013 by Michael Soi for Cirby the fact that many international cle Art Agencys Modern and Contemguests will be in attendance. porary East African Art auction. Ive had several phone calls from The auction takes place regularly overseas from art lovers who say theyre ying into Nairobi especially overseas at places like Sothebys, Christo place their bids on the art of their ties and Bonhams. The two other exceptional events choice, said Danda Jaroljmek, one of the co-founders of the Circle Art Agen- upcoming later this month are the cy that is organising its rst Modern grand opening of the Murumbi African and Contemporary Art Auction on Heritage Collections at the Nairobi Gallery on the last day of the November 5 at the Villa Rosa Kempinski hotel in Heroes Weekend MonWestlands. day October 21 and the Whats exciting Three days before newly revived Kenya Muabout this yeas seum Societys Annual Art the auction, the public at fai is the Fair taking place the weekis welcome to see all 47 end of October 25 through specially-selected East lage numbe of to 27, after a hiatus of seven African artworks. But up-and-coming years. It will be held at the the event will be a foratists, many of Nairobi National Museum mal attire-type occasion whom will be where all seats will be recourtyard, behind the Louserved for those bidding is Leakey Auditorium. exhibiting fo the on the art. As part of the grand st time Most of the art will opening of the Murumbi collections will be the stagbe by Kenyans such as Peterson Kamwathi, Michael Soi, ing of what Murumbi Trust director Justus Kyalo and Anthony Okello. But Alan Donovan calls the nal African there will also be artwork from Tanza- Heritage Art Festival. nia and Uganda as well as Sudan and There will be brief talks by veteran Ethiopia. East African artists whom Murumbi Not since the early 1990s, when Gal- especially admired such as Kisii soaplery Watatus Ruth Schaner assembled stone sculptor Elkana Ongesa and excellent artworks by mainly Kenyans, others. has anyone seen an art auction of the Mr Donovan will also set up seatkind and calibre that the Circle Art ing for 400 guests and throw down a red carpet outside the gallery for local Agency intends to host.
Nchi 1 Barcode by Peterson Kamwathi to be auctioned on November 5 at the Modern and Contemporary East African Art auction. The one room reserved for rotating East African art exhibitions will this month showcase the art of Ancent Soi, while next month is likely to feature the works of another veteran East African Jak Katarikawe. The works of both artists were admired and collected by the Murumbis. Finally, after a lapse of seven years, the Kenya Museum Society (KMS) is resuscitating its annual art fair. More than 125 artists have responded to the online call sent out by fair coordinators Museum curator Lydia Galavu and Wendy Karmali, who previously served as the Museums gallery manager in the 1990s. Whats exciting about this years art fair is the large number of upand-coming artists, many of whom will be exhibiting for the rst time at the fair. At the same time, there will be many established painters and sculptors who are well acquainted with the value of the art fair, where art sales are practically assured, given that KMS has strict rules about the pricing of artworks. The idea being that the art is aordable (not exorbitant) so that both the buyers and the sellers go home happy that they took part in this years Art Fair, said Maria Stone, KMS chair. All three events are sending a signal to the global art world that good stu is happening artistically in the Kenyan art scene which can no longer be ignored.
Dorothy and Debbie in stunning outts that will feature at the opening of the Murumbi African Heritage Collection at the Nairobi Gallery.
A painting by Justus Kyalo to be auctioned at the Circle Art Agency auction.
ALL PHOTOS ARE COURTESY
models to walk down wearing original African heritage designs that fuse traditional Pan African textiles with modern designer motifs. Inside the Nairobi Gallery itself, six of the seven rooms will be lled with Murumbi-AH collections including fabulous jewelry, art, artefacts, Pan African stamps, rare books and traditional textiles from across Africa.
Taits isk takes should watch to avoid destuctive tendencies

By nature, business owners are typically risk-takers, choosing to create their own enterprises instead of working for someone else. However, leadership expert Steven Mundahl, co-author of The Alchemy of Authentic Leadership says the line between necessary calculated risk-taking and reckless behaviour is sometimes dicult to determine. By monitoring certain traits, he says leaders can become more selfaware and avoid destructive tendencies that can hurt their companies. Here are four traits that risk-takers should keep an eye on.
1 Sensation-seeking
move beyond the adrenaline rush and consider all aspects of a decision.
People prone to extreme risk-taking in their professional lives typically crave sensation in their everyday lives. They may seek out risky physical activities like skydiving or bungee jumping, Mundahl says. They may seek out that same rush in business settings, thriving when the atmosphere is chaotic or when theyre engaged in high-stakes decision-making. In those cases, its important to
Those who shrug o the potential cost or fallout from a failed decision or action may be more prone to make dangerous decisions than those who review all of the possible outcomes and think carefully about what will happen if the worst-case scenario comes to pass. Thats not to say you should be paralysed by fear, but you should understand what could happen if the
2 No concern about consequences 3 Impulsiveness
outcome of your action or decision is not as youd hoped.
Mundahl says.
4 Denial
People who have issues with willpower and who tend to make decisions quickly without doing the necessary research are typically more prone to making reckless decisions than those who are more disciplined. Theyre the type of people who will follow a plan for a while, but then will throw it all away with a decision that looks good at the time instead of keeping the big picture in mind,
Reckless decision-makers have higher levels of denial. They prefer not to face the reality of their choices. Instead, they ignore fallout or make excuses for why a particular decision didnt work out. They also make light of the potential for failure or choose to disregard it entirely. People who have trouble facing a situations facts are more likely to make decisions that are not grounded.
- ENTREPRENEUR.COM
31
WEEKEND EXTRA
THE GOLF COURSE

Woods emeges 2013 highest paid athlete
SUCCESS American professional
FIXTURES
KIAMBU GOLF CLUB
TOMORROW; JWSEAGON/BUPA AFRICA HEALTH PLAN GOLF; A.M:7:36 G.K. MUTHUA, DR. P. MURUMBA, W.M. PURITY, F. GICHOMO; 7:44 P.N. KAMUGI, C.N. NDUATI, R. NGUI, G.W. KURIA; 7:52 E. KINGARA, B.S. SHAH, S.K. NDEGWA(G), J. MUKONO; 8:00 A.M. GAKERE, J.N. MBURU, D. KAMAU, M.K. NJUGUNA(G); 8:08 M. KAMAU, N. KAMUNGE, J. MUCHIGI, C.K. THUBE; 8:16 S.M. KIARIE, J.R. NJENGA, J.K. MUCHAI, D.M. WAINAINA; 8:24 G.K. MUIRURI, J.N. KIMOTHO, P.K. KAHUHO, S. KIARO(G); 8: 32 G.N. KIRIBA, J. KIBUGI, S. KARANJA, J.K. WAWERU; 8:40 W. NJENGA, C. KINYANJUI, D. NJENGA, E. KINGARA; 8:48 J. MAINA(S), A. GATIMU(S), D.G. NJOROGE, J. NGURE; 8: 56 N. NDERITU(L), J. NDEGWA, G. KIBE(L), J.T. MAINA; 9:04 M. KARANGA(G), M. NGENE(G), S.M. KIMAN(JR), A.M. NJOROGE(G). PM: 11:36 G.K. ATHIRU(L), S. KARANJA, M. NGURE(LG), N. NJOROGE; 11:44 G.N. KARIUKI X 4; 11: 52 S.K. NJUGUNA, E. CHEGE, A. NGUNU, M. KAMAU; 12:00 J.M. KARANJA, J.M. KIMANI, F.M. NJOROGE, H. MAINA; 12:08 J. WAWERU (L) X 4; 12:16 M.N. MBUGUA(L) X 4; 12:24 J. NJOROGE(L), M. NDUATI, H. MWAURA, ANO; 12:32 F.N. NJAGI, P. MWORIA, M. KARANJA, ANO; 12:40 G. KAMAU, P.K. NGANGA, G. MAARA, J.K. MACHUA; 12:48 W. KIARIE, C. NJOROGE, M. KANYERIA, ANO; 12:56 S. MBUGUA, R. CHUTHA, M.G. KARUGA, K. KINUTHIA; 1:04 S. CLAYTON(S), D. NYAGA, R. NGATIA, K. MWAURA; 1:12 JWSEAGON X 4; 1:20 JWSEAGON X 4; 1:28 SPONSORS GUEST X 4; 1: 36 SPONSORS GUEST X 4; POST ENTRY TO THE STARTER: PLAYERS TO OBSERVE DRAW TIME X 4;11:40 L.NJUGUNA, K.MUCHIRI, M.KAIRU, J.WAITHAKA; 11:48 JESUS X 4; 11:56 P.RUKU, P.NGIGE, COL.GITHAIGA, DR. E.NDUNGU; 12: 04; F.N.NDEGWA, S.WAITITU, DR. A.NGANGA, J.N.KARANJA ; 12:08 A.KIOI, A.MWENJA, NYERI, E.TENGA; 12:16 OLD MUTUAL X 4;12:24; J.REEL, A.REEL, J.WANYAGA, M.PATEL
onel Messi ($41.3 million). The highest paid female athlete was Maria Sharapova with $29 million (Sh2.6 billion). Serena Williams was ranked 68th with $20.5 million (Sh1.8 billion). The Forbes list does not include inactive athletes, otherwise basketball legend Michael Jordan would have topped the list with earnings of $80 (Sh7 billion). But while a golfer tops the list of the highest paid athletes, the globes richest sporting event is the UEFA Champions League. The winners of this prestigious football tournament get the trophy and a whooping $65 million (Sh5.7 billion). This prize money, now in the vaults of Bayern Munich, is more than double what Spain received in winning the Fifa World Cup in South Africa. For their troubles, Spain won $31 million (Sh2.7 billion). In the US, the highest paying event is the Baseball World Series where in 2012 the San Francisco Giants beat the Detroit Tigers to earn a total of $19 million (Sh1.7 billion). The Super Bowl winners, the Baltimore Ravens, made $11 million (Sh968 million).
golfer topped Forbes rankings with Sh6.9 billion in annual earnings

BY CHARLES GACHERU
KAREN COUNTRY CLUB

TOMORROW: KLGU CHAIRMANS PRIZE SPONSORED BY KENYA ORIENT INSURANCE LTD: MORNING: FIRST TEE: 7.08 JAINI SHAH, M. NATECHO, P.E; 7.16 W. KIRERI, W. KIMANI, M. CHEGE; 7.24 M. MUTURI, A. OMAHONY, K. CHOI; 7.32 M. KARANO, S. KHANYERERI, W. MULULU; 7.40 A. NYAKIO, L. AWITI, R. NJERU; 7.48 M. NYACHAMA, J. WAFULA, S. SCROGGIE; 7.56 S. MUNDIA, C. ITANGATA, I. KOBAYASHI; 8.04 M. NJOKI, N. IKINU, C. VAN LUIJK; 8.12 L. ARMITAGE, N. WAFULA, C. ANDERSEN; 8.20 M. NZIOKA, M. MONARI, L. GIBSON; 8.28 C. DELLA VENTURA, V. ANNIE MARIE, E. MPENDA; 8.36 J. MIANO, L. MAINA, F. KARIMI; 8.44 F. SHIROYA, J. NDEGWA, M. MAINGI; 8.52 E. MCCATHY, J. VOHORA, M. CHEBUKATI; 9.00 K. MUIA, S. MAULADAD, C. OCKOTCH; 9.08 G. GICHUKI, S. BHAVRA, J. MANGU; 9.16 G. DHALL, P. KIMBO, R. OMONYA; 9.24 M. KANAIYA, R. OBARA, H. GATIRAMU; 9.32 G. KARIUKI, J. KAIME, M. NYAKANGO; 9.40 S. MACHARIA, S. HOARE, A. MBUCHUCHA; 9.48 G. TIGST, J. NGURE, S. ESMAIL; TENTH TEE: 7.24 C. KERUBO, R. PATEL, P.E; 7.32 M. SHARMA, D. KAIRUTHI, N. MUHIA; 7.40 A. AWUOR, R. MUNORU, J. WAMBUGU; 7.48 L. AKINYI, H. MBIRO, M. WAMBUGU; 7.56 R. KIARIE, J. HINGA, R. SHAH; 8.04 L. MUHINGA, M. ASAKA, B. JONES; 8.12 J. MURIITHI, A. MWALIMO, D. OCONNOR; 8.20 R. WAITETE, M. GACHERI, A. PATEL; 8.28 L. OKETCH, R. KWASU, Y. CHOI; 8.36 S. GATHIGIA, N. DEVANI, A. MWOK-HANDA; 8.44 O. NYANJI, M. KALEKYE, S. JAYASINGHE; 8.52 E. GARDNER, V. NDUVA, F. MOHAMMED; 9.00 L. OBONYO, Y. WETTSTEIN, A. NJUGUNA; 9.08 B. SHAH, N. KIENGO, S. MUTANGWE; 9.16 M. CHEPTUMO, P. KANDIE, J. NZIBO; AFTERNOON: FIRST TEE: 12.00 G. G. WAMBUGU, W. NGURU, N. WACHIRA, G. KARUGU; 12.08 C. MUTURI, A. NYAGA, P. MUNENE, Y. AWALE; 12.16 A. WANGARI, G. NDIRANGU, M. ODADA, J. OKUKU; 12.24 DR. F. MURIU, B. CHANDARIA, J. GICOGO, S. NDEGWA; 12.32 D. KIENGO, W. MAYIANI, C. KAHURA, M. KINOTI; 12.40 A. KARIUKI, S. R. NDEGWA, A. GIDOOMAL, R. MEDIRATTA; 12.48 C. OTOLO, F. OGOLLA, D. KUCHIO, C. GACHERU; 12.56 HON. G. MUIGAI, M. NYAOGA, DR. R. MOGERE, DR. J. KARIUKI; 1.04 AMB. J. KANDIE, C. MACHANI, D. MOGERE, P. KEBATI; 1.12 F. OKWARA, T. MULWA, J. KIBET, J. NGUNZE; 1.20 P. WARUI, H. NJOROGE, A. MUHORO, R. WANJALLA; 1.28 E. VITISIA, J. NJUNGE, R. NALIAKA, L. KAMAU; 1.36 J. KIMONDO, S. WARUHIU, K. KARIUKI, DR. P. WAMBUGU; 1.44 KENYA ORIENT X 4; TENTH TEE: 12.00 D. KIRERI, D. KAHORO, G. KAMAU, G. GATHUMBI; 12.08 C. DIAZ X 4; 12.16 D. KIHARA, A. K. MAINA, D. WAWERU, P. WARTNABY; 12.24 E. SASIA, J. NJUE, M. OKEYO, D. KOMEN; 12.32 E. MBOLE, R. WAFULA, S. KONA, B. KOYIER; 12.40 A. MURAGE, P. MURUNGA, P. OTOLO, J. CHEBUKATI; 12.48 E. KIVUVANI, F. MWANZIA, D. MBUGUA, P. KIRIGWA; 12.56 A. LAWSON, C. OJIAMBO, P. KOMBE, T. INDIMULI; 1.04 AMB. D. AWORI, W. CHEBUKATI, K. KUBASU, L. MARANGA; 1.12 D. WAMBUGU, P. SEREM, S. MWANGI, P. MUHIA; 1.20 B. OMUODO, A. NKIIRI, H. MUGO, J. KINYUA; 1.28 G. MUSYOKA, S. MWAI, M. GITHIAKA, W. KUNGU; 1.36 KENYA ORIENT X 4;
In June 2013, Forbes published the list of the Worlds 100 highest-paid athletes, and Tiger Woods was back on the top with earnings of $78.1 million (Sh6.9 billion). Woods has claimed this spot since 2002, but lost it to boxing star Floyd Mayweather in 2012, with Manny Pacquiao coming in second in 2012 and him in third place. His highest grossing year was 2008 when he nished with $115 million (Sh10.1 billion). In 2013, Tiger earned $13.1 million (Sh1.15 billion) from prize money and another $65 million (Sh5.72 billion) from endorsements. Roger Federer was second wth $71.5 million, Kobe Bryant third with $62million, LeBron James fourth with $60 million, Drew Brees from the NFL ($51million), his colleague Aaron Rodgers ($49 million) and golfer Phil Mickelson ($48.7million). Flamboyant footballer David Beckham earned $47.2 million, making him the highest ranked footballer in 2013 ahead of Cristiano Ronaldo ($44 million) and Li-
Popular
Incidentally, the winner of the Fifa Club World Cup got $5 million (Sh440 million). The Dubai World Cup, for those in horse racing, pays upto $6 million for the rst prize. In a race that takes a little over 120 seconds, that translates to Sh4.4m per second. For those who love cards, the World Series of Poker pays a top prize of $8.5 million. The FedEx Cup, which is the PGA Tours season ending event, pays out $10 million. Away from the money, which are the worlds most popular sports? Ranked from 1st, the most popular sports are: football, tennis, cricket, baseball, table tennis, basketball, eld hockey, golf, rugby and volleyball. Im not sure who is responsible for such atrocious rankings. How can pingpong be more popular than golf? And where is athletics and darts? Whatever your sport, enjoy your weekend.
RUIRU GOLF CLUB

TOMORROW; OLD MUTUAL GOLF DAY; 7: 00 J.NGARUIYA, G.MUIRURI, J.MAIKARA, S.MOKAYA; 7:08 P.MARARO, C.MAINA, JOHN G, S.NYINGI;7.16 C.N.NDUATI, FR.MWAURA, H.GICHO, JOEL MBURU; 7:24 J.MURAGURI, J.KANARI, ENG.MWANIKI, W.RUGU; 7:32; J.MUKONO, C.KIYUKIA, P.MUTEGI ,G.MUTAHI; 7:40 A.K.NDUNGU, JIMM K, J.JENKINS, A.K.WAINAINA; 7:48 B.WAITITU, P.MUCHANGI, DR.KARIENYE, C.KIAI; 7:54; G.MUTHWALE, N.GITHAE, S.WARUI, J.GACHOMBA; 8: 02 S.MWITI, B.KANYI, B.NDUNGU ,REV.KARANJA; 8:10 D.MARSHAL, P.SMITH, COL.MATU, COL.KARANI; 8:18 P.MURAGURI, BRIG.MUHAMED, E.K.MWAURA, S.GATHATHI; 8:26 M.KINYANJUI, G.KIRERI, J.N.WANYOIKE, K.KIMENJU; 8:34 J.BORO, M.KINUTHIA, M.WAWERU, W.IKINU; 8:42 E.KARANJA, D.MBUGUA, P.NGUYAI, S.NDUATI; 8:50 M. KAMAU, C.KIAI, L.NDUATI , DR.KAMAU; 8: 58 OLD MUTUAL X 4 9:06 F.NJUGUNA, S.KANYORA, N.MWAURA, P.MBURU; 9:14 OLD MUTUAL X 4 ; 9:22 KENYA AIRFORCE X 4; 9: 30 P.NGUGI, P.KIARIE, E.KARANJA, Z.MUIGAI; 9:38 S.KINYANJUI, J.GATERU, S.NDUNGI, J MBURU; 9:46 P.MARARO, J.MWAURA, P.NDUATI, M.GITONYI; 10:04 NYERI X 4; 10: 12 PROF.NGANGA, G.GATERU, J.GAKUYA, R.MWAURA; 10:20 S.K.WAHOME, F.M.KAH ARUKA,M.KAMAU,KENNEDY CHEGE 10:28 P.KAMAU, J.MURATHA, P.KANYINA, M.PATEL; 10:36 C.NJUI, M.N.KINUTHIA, DR.WANGWE, ENG.MAKAU 10:44 F.KARU, P.GAITARA, K.NDICHU, T.KINUTHIA; 10:52 PROF G.KENJI, D.NJOGU, E.KARANJA, S.GWANDARU; 11: 00 P.KIGWE, RAILWAYS, G.KAROBIA, RAILWAYS; 11:08 A.MWANGI, G.KIHIU, L.KWENDO , T.MUCHIRAH; 11:16 P.RUKU, M.MBUGUA, W.NDURURI, S.PATEL; 11:24 P.NJOROGE, J.GITAU, K.KIAMA, P.WAWERU; 11:32 KIAMBU
6.9bn
Amount in Kenya Shillings Tiger Woods has earned in 2013.
32
THE MARKET CURVE

FINANCIAL ANALYSIS & COMMENTARY
Small banks ewite lending ules

closes as lower tier nanciers acquire new lending muscle
ompetition in Kenyas banking sector is getting stier by the day, with mid-sized (tier two) and small (tier three) banks gradually closing in on their large (tier one) peers based on market share numbers. Kenyan banks are classied into three peer groups as per the Central Bank of Kenyas weighted composite The Central Bank of Kenya in Nairobi. A wave of re-capitalisation in 2012 that saw index that comprises total assets, deposits, capital size, number of deposit the regulator raise its minimum core capital regime to Sh1 billion has given smaller and loan accounts. banks new lending capacity. FILE A bank with a weighted composite index of ve per cent and above is clasother banks. By comparison, medium key factors could be behind this phesied as large, or tier one; a medium banks share of earning assets largely nomenon. First, a wave of re-capitalisabank has a weighted composite index remained strong and solid in the same tion in 2012 that saw the Central Bank of between one per cent and ve per period and in fact, grew by 0.8 percentraise its minimum core capital regime age points to 37 per cent. to Sh1 billion has seemingly given the cent while a small bank, or tier three, Small banks recorded tier two and three tier ones new lendhas a weighted composthe largest market share ing capacity and increased their ability ite index of less than one to marshal more deposits in the margain, with their share of per cent. They ae not ket. Secondly, the larger banks growth earning assets rising by At the close of June only getting curve could be entering the plateau three per cent from 5.9 2013, there were six large aggessive phase and not much growth should be per cent at the close of banks, 15 medium banks and 22 small banks. In the expected to come from them. 2012 to nine per cent as but also six-month period between However, in as much as they are at June 2013. defending thei December and June 2013, gradually eating into the market share This remains an intuf large banks market share of their larger peers, medium and small teresting trend so far of the banking sectors banks still do not have a deep-rooted and shows how aggresearning assets declined sive both the mediumdeposit franchise in the market and by four per cent to 54 per sized and small banks therefore lack pricing power. This is cent, from 58 per cent at are getting in a highly shown by what they pay for deposits, which is reected in their cost the close of 2012. competitive market. of funds. Earning assets refer to the income They are not only getting aggressive but also defending their turfs by For instance, at the close of June or interest bearing assets of a bank, which include customer loans, governmaking sure they dont lose any of their 2013, both medium and small banks ment securities and even lending to market shares to the big players. Two paid an average of 44 cents for every
FINANCE Gap
Investos see bight futue fo economy

The stock market is often referred to as a barometer of the economic pulse due to its fabled ability to predict future performance of listed companies If nine-month trade volumes and share price gains at the Nairobi Securities Exchange (NSE) are anything to go by, then Kenyas economic future is bright. NSE turnover for up to September has surpassed last years total, setting the stock market on course to hitting a new annual turnover record. Data released by the exchange for up to end of September shows the NSE equity turnover for the nine months to September 2013 stood at Sh115.4 billion, compared to Sh86.8 billion for the full year 2012, Sh78.1 billion for 2011 and Sh110.3 billion for 2010-- which is the highest ever annual turnover recorded by the NSE. Share prices have been on a relentless bull-run, driving the NSE 20share Index to nearly 5,000 points. Market turnover to September 2013 is double what it was in the rst nine months of 2012, when it stood at Sh57.6 billion. The market surge comes at a time when Kenya has suered bouts of negative publicity, the highlight being the recent terrorist attack at the upscale Westgate shopping mall. Not even the political uncertainty surrounding the ICC trials of President Uhuru Kenyatta and his deputy, William Ruto, appears not to have dampened investors mood.
Kenyan banks are locked in a erce turf war for market share
SOURCE:CALLSTREET RESEARCH AND ANALYTICS
one shilling in interest income they generated. This, compared to the 20 cents their larger tier one peers paid, still shows they are increasingly being priced out of the deposit market and still have some way to go in as far as growing their ability to mobilise deposits is concerned.
GLOBAL MARKET WATCH

DJ INDU 14,802.98 26.45 FTSE 100 2,514.15 24.81 XETRA DAX 8,621.98 105.29 CAC 40 4,188.54 61.49 SMI PR 7,827.09 71.83
CURRENCY RATES
HANG SENG 22,951.30 -82.67
NIKKEI 225 14,194.71 156.87 ALL ORDI. 5,146.21 -5.35
STRAITS 3,169.91 15.07
SSE COMP. 2,190.93 -20.84
S&P SENSEX 20,246.55 -2.71
$: 85.29 : 115.19 : 136.07
TSh USh SAR
18.77 29.64 8.55
Market Activity
LAST 1857.4 MARKET CAP IN SH BN 52,095,000 TOTAL SHARES TRADED 617,136,999 EQUITY TURNOVER IN SH 1,150,000,000 BONDS TURNOVER 8 TOTAL DEALS (BONDS) 1,783 TOTAL DEALS (EQUITY) 4,947.00 NSE 20 SHARE INDEX 132.08 NSE ALL SHARE INDEX 726.58 PBI 27 174.14 FTSE NSE KENYA 15 INDEX 176.48 FTSE NSE KENYA 25 INDEX 92 FTSE NSE KENYA BOND INDEX 1237.04 FTSE ASEA PAN AFRICAN INDEX PREVIOUS 1867.76 46,187,700 795,450,797 1,400,200,000 7 2,238 4,946.02 132.82 731.26 175.01 177.43 92.07 1237.12
HE SAID
All of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership.
- Kenneth Galbraith, American Economist
www.businessdailyafrica.com
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The business of taking a break

>>PAGES 12-13
11th OCTOBER, 2013 - 17th OCTOBER, 2013
Following the eclipse to Siliboi
Touists coming fom as fa as the US and Austalia >>PAGES 8 & 9
Naivashas growing luxury real estate >>4 | Bring out the grills >>5 | Want to quit smoking? >> 11
BDLIFE | Friday October 11, 2013
BDLIFE: THIS WEEK

REAL ESTATE ACTIVE LIFE HEALTH EAT OUT
EDITORS NOTE
total solar eclipse is a sight to behold, and the hybrid solar eclipse expected to be sighted on November 3 is truly a tourism spectacle. Expected to draw over a thousand international tourists from around the world from as far as the United States and Australia, and many Kenyans, the viewing point in Kenya will be at Ali Abey in the Sibiloi National Park in Turkana. The event which will take place on a Sunday is the perfect reason to take part in some domestic travel. Tour, charter and hotel owners, both local and international, are lining up to provide their services for those who will be on hand to witness the 11 seconds eclipse whose shadow will stretch for 13 kilometres along the shores of Lake Turkana. In our real estate pages, nd out why Naivasha is quickly becoming the new luxury homes and resorts choice for discerning investors. As usual, we have an interesting package for you this weekend. Sit back and enjoy.
Rhoda Oengo
Time to bring out the grills for a barbecue
Get a trampoline workout
11
Want to quit smoking?
14
Welcome avour of NY takeout classics at Taste of China
THIS WEEKS PHOTO

Models from Aroma Entertainment Limited; Lorraine, Barbariza and Brenda, unveil Wrigleys Double mint chewing gum during its launch at the Panafric Hotel in Nairobi recently.
SALATON NJAU
Published by the Nation Media Group Kimathi Street, Nairobi PO Box 49010 GPO Nairobi Telephone 254 20 328 8104 Fax 254 20 214 849 Email: bdlife@ke.nationmedia.com www.bdafrica.com
LINUS GITAHI Chief Executive Ofcer JOSEPH ODINDO Editorial Director OCHIENG RAPURO Managing Editor RHODA ORENGO Associate Editor JOAN PERERUAN Photographic Editor JACKSON BIKO WANGUI MAINA EVELYNE SITUMA MWIKALI LATI DOREEN WAINAINAH DR MUKUHI NGANGA MARGARETTA wa GACHERU Writers GENNEVIEVE NAHINGA Senior Graphic Designer MILLIE WACHIRA Graphic Designer ALICE OTHIENO Graphic Designer
COMMENTS
LIFE AFTER VALUE ADDED TAX
Mheshimiwa Kago: I believe the government is doing more harm than good. How does it hope to achieve the Sh10 billion mark when consumption goes down, reducing spending that will, on the other hand, aect income generation? GeeKonsult: The legislation was bad. Period. The people who did it, did not analyse its broad impact, what they gave with one hand they took away with two. Traders are now resorting to ways of absorbing the cost, and in instances where they do that, 30per cent corporate tax is lost. What of the long haul impact on payroll taxes, impact on reduced spending, slowdown of manufacturing due to low uptake? This is the umpteenth time I am commenting on the VAT issue and the more I do so, the more I am convinced it is a bad tax law. Job Omundi: Jubilee technocrats have to realise that they cannot tax their way out of this (revenue) problem. Eventually, demand will decrease thus creating a crisis. But again, the investment bubble (particularly in housing) is about to burst. Talk about a perfect storm in the making.
BELLS
Daniel Maina Aluvik: I cant sleep peacefully while somebody snores. In fact, you feel troubled the next morning. Sropes Wachila: Are there any doctors or specialists to diagnose these kinds of conditions and give remedies? I know snoring could kill you.
ON THE COVER
A photo illustration of a man looking at a solar eclipse while standing next to a vintage Safari vehicle .
BD PHOTO ILLUSTRATION MILLIE WACHIRA/ AFP
SNORING SOUNDS WARNING
CONTACT US:
BDLife wants to hear from you. Send photos and letters to bdlife@ke.nationmedia.com and we may publish them on this page. Follow us on Facebook.com/ BUSINESSDAILYAFRICA or join and follow our conversations on twitter @BD_Africa and #BDLife. Cheers!
Friday October 11, 2013 | BDLIFE
PROFILE: BDLIFE
Why living in faith is paamount in Muiithis life

KTB is in a spiited campaign not to let the latest teoism acts, o tavel advisoies, knock the wind o thei sails. You know its business as usual because they ae in the thick of oganising two notable events Magical Kenya Tavel Expo and the Wold Tavel Awads - scheduled fom 16th to 20th Octobe. These two events will bing close to 40 counties fom acoss the wold to Kenya. All of the 120 paticipants fom each of those counties have conmed paticipation. Wold Tavel Awads is a big deal fo KTB and fo Kenya, given that its consideed the Oscas of tavel awads and its the st time its coming to Kenya. When I meet Muiithi in his oce, we dwell on his conestones: living in faith, humility and his yet-to-be-fullled need to get involved in chaity.
BY JACKSON BIKO
Just how badly did the Westgate thing affect tourism and how much are you guys ploughing back in to remedy the situation?
First, I extend my sympathy to those who were aected by this. Terrorism is a phenomenon that isnt unique to Kenya. It happens all over the globe. We have been lucky that we havent had any major cancellations after that but we are closely monitoring the situation and engaging in reassurance campaigns geared towards giving specic information to our source markets through some of our 15 global agents.
Lets talk animals. What animal do you think you are in the animal Kingdom?
(Laughs) What animal am I? (Long pause). Look, let me tell you who I am then you can tell me what animal you think that is: Im born again, I live the right Christian ideals, Im focused and responsible and professional and Im driven by getting things done. My rst ideal is my salvation. There you have it, what am I?
PHOTO/ COURTESY
A dove.
(Laughs) The dove is certainly mentioned a lot in the Bible. So is the snake, but not in good light. (Smiles).
Give me ve of your favourite tourism destinations in Kenya.

(Laughs). Oh no! I will have to avoid that question because Im not in a position to be seen to favour one area over the other, even though I have my personal favourites. My mandate is to market all the 47 counties. You realise what predicament this question poses, right?
Share with us a verse in the Bible that you nd profound and useful in your life.
(Gets a Bible from his drawer) Its Proverbs but I cant remember the right verse, it says, In all things God works for those who are called by his name. Being born again doesnt mean we live in Utopia and if you believe that all challenges coming your way are predetermined to test your faith and is for your good, nothing in life will shake you.
MURIITHI NDEGWA MD, KENYA TOURISM BOARD

Age: 50 Accomplishments Before KTB he was the MD of East African Cables Tanzania. He holds a Masters Degree in Business Administration. He is the holder of the Order of Golden Warrior (OGW) awarded to him by the head of state last year. What kind of a guy were you before you got saved?
(Laughs hard) Thats a good question. (Long pause). I certainly had the qualities I mentioned earlier only that I looked at them through a human perspective not a spiritual one.
Id like to support a charity, something that makes society better.
If you died today, what would be your greatest regret?

That I didnt do anything to help others, and it ties in with what I just mentioned above. I have not supported my conscience much in supporting a cause. (Thoughtful pause). Id like to support a cause that will outlive me and my children and their children.
Absolutely. Fair enough. What are your interests away from this ofce?
I read a lot. I like the current aairs and business world. I feel that they add value to my body of knowledge. Im an extroverted person, so during my free time I will be spending time getting in touch with friends. I go to the gym once a week. I also swim. Im trying to get back to golf.
Have you ever backslid and what instigated it?

No, I have never. Ive been very lucky.
Who in the Bible most mirrors who you are?

(Laughs) Biko these are tough questions! (Thinks hard). I think that would be John the Disciple, not the Baptist. There is a dierence. John never once referred to himself as Jesus favourite disciple, he only says that Jesus loved him. Im touched by that level of humility.
How long have you been born- again?

Four years. To keep the faith, I read the Bible a lot and live through His word. I also attend BSF (Bible studying fellowship) every week.
What or who inspires you?

Nelson Mandela. I nd his mien very inspiring and quite humbling. There is also Billy Graham, who is a large global iconic gure inspiring people through his Christian teachings. Mother Theresa is another one who left her comfortable dwelling to go to Calcutta, a deplorable existence. All these people inspire me with their humility and selessness.
Family?
Yes. Two kids, one girl who is 18-years-old and a boy who is 14. Its important for us as a family to have faith and to be spiritual and we are blessed that our children are born again as well.
Whats on your bucket list?

(Thinks) I would like to give back to society. I have benetted a lot from my parents and family and my country and I feel that I need to give back, you know, give more.
You turned 50 this year, how did you celebrate ve decades?

Dinner with family. Im always so busy so when I get moments like that , I share them with family.
BDLIFE: REAL ESTATE How to paint you walls

Youve probably heard that a colour swatch or colour chart never looks the same once its on your wall. There is some truth to that. After all, youre taking a colour from a small, handheld cardboard square and applying it across a large vertical surface. But there is a foolproof process that ensures the colour you achieve on your walls is what you are hoping for: Choose a handful of hues, or borrow the entire colour chart, and bring it home. Look at them in the room you want to paint at all times of day, from bright morning light to golden afternoon light to lamp-lit darkness. Hold them against upholstery fabrics, artwork, lampshades, and curtains. Narrow your choices to two or three colours. Chips that show coordinating colours are especially helpful. Ask for sample amounts of your favourite colours. Most companies offer small-size containers, which might cost a few hundred shillings. If youre considering several paint colours, this can add up to quite a bit, but its a worthy investment. Nothing will help you choose a colour better than seeing the hue applied to the wall. Take the samples home and brush them on the walls of your room. Paint broad sections of the wall at eye level. The larger the section the better to evaluate the colour, so dont be shy. Live with these splashes on the wall for a little while to see how they look on different days. How the colours look at night in the glow of your lamps is also something to test. Once youve settled on the winning hue, consult the experts at the paint store about what sheen to choose. Based on what wall surface you have and whether the walls will need to be protected from moisture (in a bathroom or kitchen) or ngerprints (along a hallway or staircase), theyll suggest the best sheen to achieve the colour you want. For example, at sheen paint gives you colour closest to the original cardboard paint chip, whereas semi-gloss paint will have a moderate reective quality that will dampen the vibrancy of the colour slightly. Now you have everything you need to paint the walls. Go ahead! Be brave, take the plunge and give your walls some character.
Try out the paint on a small surface rst. FILE
Artistic impression of the Aberdares Chapachula Village villas. COURTESY
Why Naivasha is the next luxuy homes destination

Because of its poximity to Naiobi and easy access by oad, this once quiet town is becoming a must-have addess fo the well-to-do
BY CHARLES MWANIKI
aivasha has become a prime spot for investors seeking a piece of the luxury homes and resorts segment of real estate - with no fewer than three major projects coming up in the area. One of the more eagerly awaited developments is the Sh120 billion Aberdare Hills Golf Resort, which promises to lay down Kenyas rst USGA Championship 18-hole golf course, which will be within a development that also houses a park, hotel and residential houses. The developments will oers access to key tourist attractions in the region such as Hells Gate National Park, Lake Naivasha and Mt Longonot, as well as being within a one hours driving distance to Lake Nakuru National park. The growing preference for Naivasha as a conference tourism destination has led to increased demand for hotels, lodges and self-catering accommodation facilities therefore continuing to drive returns
marginally above other local towns in the country, said Dr Pritam Singh Panesar, managing director at Panda Development Company Limited, the developer of Aberdare Hills Golf Resort. The development is set on 1,700 acres out of which only 30 per cent will be built on while the rest will be left for wild animals, birds and forest thus making it an ideal destination for tourists and discerning locals. The development site is on a high plateau to the north of Naivasha town, with the Malewa River on its northwest boundary. The Sh85 billion Longonot Gate and Osotua Villas are the other two major luxury housing projects that are coming up in the area. Like Aberdare Hills, Longonot Gate also has an 18-hole golf course, and is expected to accommodate 1,500 luxury country homes, a commercial centre with tourist hotels and shopping outlets. Unlike the others, Longonot Gate is positioning itself as a country home for the family just an hour away from Nairobi where owners can live and commute to Nairobi or which can be rented out when not being used by the family. The development also has a school and hospital on the plan. Other developments across the country that combine the golf and residential formula include Sergoit Golf Resort in Uasin Gishu, Mount Kenya Holiday Homes in Nyeri, Thika Greens as well as Vipingo Ridge at the Coast. In June, Panda Development Compa-
ny announced the appointment of real estate expert Rod Taylor as the chief development ocer for the Aberdare Hills Golf Resort, paving way for the start of the project. The rst phase of the project comprises the golf course, a club house, a 120-room ve-star hotel, villas and townhouses. The residential villas and town houses are set to be occupied by the owners but they can also be rented out at will as selfcatering accommodation to tourists. By renting private accommodation at Aberdare Hills Golf Resort, tourists are able to create their own home away from home and it is relatively inexpensive way of staying in Kenya for large groups of people, said Mr Taylor. The prices of homes will range from Sh18 million to Sh40 million depending on the house size and the foot prints of the land, explained Dr Panesar. The developers estimate that investors in the agship Chapachula Village at the resort could get up to a 15 per cent annual capital growth in the rst two years, with the properties subsequently projected to appreciate at an annual rate of around ve per cent following completion of the golf course and conference facilities. We are piloting golf and conference tourism concepts that are relatively new in Kenya and whose potential remains largely unexploited, said Dr Panesar.
Proximity
In 2012, Naivasha town made its debut in the International Congress and Convention Association (ICCA) continental report, ranking 34th in Africa as one of the most popular destinations for international conventions. ICCA is a worldwide umbrella body for international conferences and conventions. The town has, in the last decade become a favoured haunt for both government and private sector conferences, retreats and is one of the most popular holiday destinations for Kenyans who are attracted by its proximity and easy access by road from Nairobi. Its just an hour away. Currently, tourists pay approximately between $275 to $390 (Sh24,000-34,000) in low season for high end holiday rentals within Naivasha compared to $188 to $360 (Sh16,000- Sh31,000) in Nairobi. The real estate sector in Kenya has been one of the fastest growing sectors in investment and returns, with property developers enjoying a boom in prices that has so far shown no sign of slowing down. cmwaniki@ke.nationmedia.com
Osotua Villas holiday homes for the wealthy in Naivasha built around a golf course. COURTESY
GARDENING:BDLIFE
How to tell the dieence between Amayllis and Hippeastum lilies

here is often confusion when it comes to these two names to the extent that most of the large owered hybrids that are seen in East Africa are erroneously called Amaryllis while they are, in fact, Hippeastrums. Although similar to Hippeastrum, the true Amaryllis is a bulb from South Africa with only one species in this genus, Amaryllis belladonna. This has pure pink trumpet-shaped owers and is quite unusual in East Africa as it needs a cool climate above 2,000 metres in altitude with a three-month complete dry rest after the strap-shaped leaves turn yellow and dry o. After the three months rest, watering is resumed when the scented owers will appear. When the owers die away, the leaves will appear. This is usually treated as a garden plant and the dry period for this bulb is best left to the seasonally dry period of January through to the end of March.
Hippeastrum x ackermannii hybrid
Over many decades, plant breeders have produced lots of hybrids with large blooms in varying shades of red, pink, orange and white often with striping, all of which are very attractive. Hippeastrum are easily grown and are best in either full sun or dappled shade, either as a potted plant or in the garden border. They need to be planted in well-draining soil with 5 cm of the bulb showing above the soil level. If necessary, add pumice or sharp sand to the soil to improve the drainage. When planting the bulb, add a little compost and bone meal to the mix which will enhance their growth.
the next rainy season. The plants will continue to grow if kept continually watered but the ower display will not be so impressive and the bulbs will become exhausted more quickly.
Potted
If using as a potted plant, select a large pot, at least 25 cm in diameter, since this is a large plant when in full leaf and ower. If using an even larger pot, 2 or 3 bulbs could be planted together. If you are using the Hippeastrum as a potted plant, it is easier to control the drying o period by merely moving the pot from direct sun to under a cover so that it cannot be affected by rain. As a potted plant, it is easy to reduce watering and let the leaves wither away after owering. Hippeastrum can be grown from coast level to about 1,800 metres but remember that above this level, where there is usually more rain and less dry periods, the plants do not perform so well. During the owering season, the display will be improved by a weekly watering with a liquid feed. Email: info@rosesgalore.co.ke
Hippeastrum . x ackermannii Red Lion
Seasons
For the best ower display, it is important to rest the plants between owerings. This can be done naturally by simply following the seasons here in East Africa. During the dry weather, all that will be seen is the top of the bulb. The next ush of ower stems and of leaves will appear after the rst rains. To achieve this when using them as garden plants, plant in the dry season so that the bulb comes to life during the rainy season. Once the rainy season ends, allow the leaves to die away so the bulb can rest and wait for
75 species
Hippeastrums are from Central and South America with 75 species in the genus. Like the Amaryllis, they have strap-shaped leaves and large trumpet-shaped owers but they come in many colours.
Hippeastrum x ackermannii hybrid
Time to bing out the gills fo a babecue

BY DOREEN WAINAINAH o chase the chill that has long overstayed its welcome in the city, a barbecue with friends and family would be the way to go. With the market growing larger and technology becoming more advanced, you can have one on the verandah, gazebo or under the blanket of the sky. Barbecue equipment is available in various types and each type uses a dierent medium for heating. Charcoal grills are the most popular in Kenya and are especially handy when it comes to giving meat that smokey, charred taste. To keep the smoke contained, hoovers are placed strategically above the grill, to keep suck smoke away from the guests.
Assortment of outdoor barbeque grills.

SALATON NJAU
Hacienda Fire Grill will cost Sh17,995. The grill has multi compartments for dierent grilling needs.
Jua kali artisans

Electric and gas-powered grills have also become a popular option. The range for gas powered grills is between Sh18,000 to Sh35,000. The cost is determined by the design and size. The gas grills come with a compartment for the cylinder as well as space for the ingredients. For more cost-ecient options, or personalised designs, metal fabri-
Cost
For those without a verandah, gazebo or structure to t the device, there are grills which come with chimneys to direct the smoke. The round hat barbecue grills cost from Sh5,000 to Sh12,200, depending on the size and stockist. At Nakumatt, the silver coated La
cators in Gikomba market, at Racecourse along Ngong road or other jua kali artisans can tailor-make the
re grill to t your space and user needs. The grills will cost you between Sh3,000 and Sh25,000.
After a joyous weekend of grilling and sizzling up the grills, the task of cleaning becomes a daunting one. To make it easier, do not procrastinate on the task, while the grill is still warm (not hot) take a wire brush and remove any remaining food particles. They come o much easier while the grill is still warm because they have not hardened yet. Clean o with a clean rag or a paper towel, and if is made of wrought iron, apply some vegetable oil to the grate to keep it from rusting. For gas grill, be sure to clean around the burner to avoid any blockages. Some manufacturers have specic cleaning instructions to look out for that.
ALL PHOTOS/ COURTESY
Fo the best display, it is impotant to give the plants time to est befoe the next oweing. This can be done by simply following the seasons
BDLIFE:THE ACTIVE LIFE
Thrifty Enterprise Director George Irungu during the interview last week. DIANA NGILA
SIMPLE WORKOUTS ONE CAN DO ON A TRAMPOLINE

Put your arms out, as you bounce, move your arms in a circular motion. Begin the exercise with small tight circles and expand them to bigger ones until youre moving your arms as if you are holding a skipping rope. Slow down to a steady jog. Raise your knees so that your feet are four inches off the mini exercise trampoline. This can be strenuous, so go easy. In the beginning, for this exercise, simply walk on the trampoline and lift your knees a little.
Get a tampoline wokout

Thrifty Enterprise staff bounces on a trampoline
DIANA NGILA
Just like with any othe game o activity, one needs to take cae, especially with childen
BY DOREEN WAINAINAH
A German Hodura trampoline. The trampoline offers an alternative to jogging and running. COURTESY
ogging and running are very healthy workouts, they burn calories, and provide a good cardio, however, by the end of it all, you are an exhausted sweaty mess. Trampolines oer the same cardio and calorie burning benets but with less impact on the joints and the added value of fun while doing it. As far as tness regimens go, trampolines though yet to become a household name in the country, are popular in the west and are even prescribed for rebound therapy. With your arms and shoulders relaxed, gradually start bouncing up and down on the trampoline creating a rhythm. Breathe deeply and exhale completely with each bounce. A trampoline is basically a device made from a piece of taut fabric stretched over a steel frame using many coiled springs. The fabric, in itself, is not elastic as the bounce comes from the spring. With a required one and a half hour daily workout for children and teenagers, parents need to introduce new and fun ways to keep the children away from the TV or gaming consoles. According to the National Diabetes Education Programme, the 10 to 15 per cent increase in the number of obese teenagers and children is resulting in more cases of type 2 diabetes among the same age set.
tion, a mini trampoline indoors for a simple workout oers the much needed exercise without having to strain. One gently bounces up and down on the trampoline without needing to jump. The springs provide the needed movement. Trampolines come in various sizes with the larger ones for domestic purposes being as large as 14 feet. This is the most popular because it is roomy and has a safety enclosure, says George Irungu of Thrifty Enterprises, which supplies German Hodura trampolines locally. The other sizes are 8 feet, 10 feet and 12 feet. For mini trampolines, you will mostly get 96 cm and 140 cm. The cost varies depending on the country of origin of the trampoline, a German Hodura 14 feet trampoline would go for Sh70,000 while one sourced from China would go for Sh40,000. The dierence is in the quality and how long it can be used without needing to replace parts, says Irungu.
polines include Thrifty Enterprises who supply trampolines, as well as a foldable and a simple mini trampoline. The range at Thrifty is between Sh15,000- Sh70,000. Other suppliers include Toy World stores where the cost ranges for Sh11,950 for a mini folding trampoline to Sh192,000 for a 14-foot super bouncer.
Safety
Just like with any other game or activity, trampolines can be a death trap waiting to happen. Children must be under strict supervision when using them. Somersaults, backips and stunts on the device can result in serious injury. With an enclosed trampoline, keep the children away from the net around the trampoline as it is very easy for them to tangle and strangle themselves with it. This will also prevent the child from falling out. Every so often, have your provider come in and do a check for any loose hooks and make sure none of the springs are exposed. The trampoline should be sturdy and wellpadded and on a level, at area. Make sure there are no holes, that the springs are intact and securely attached at both ends, that the frame is not bent and leg braces are securely locked. Keep the trampoline away from hazards like walls, fences, play equipment and garden furniture and that overhead objects like clotheslines, trees and wires are far away. For adults, know your limits and do not bounce for too long to avoid unnecessary pressure on your system. And dont forget to empty your pockets before you get onto the trampoline.
After sale service

When purchasing a trampoline, one needs to look at the warranty and after sale services oered by the retailer. After sale service ensures that in case of breakage or need for the replacement of a part, the customer does not need to struggle in search of a spring or spring pad. According to NASA, a session on the trampoline is 68 per cent more eective than jogging. In addition, rebounding provides the necessary workout needed for the lymphatic system. When working out on the trampolines, the lymph nodes are jostled, squeezing out the toxins. Locally, some of the suppliers for tram-
Strain
Bouncing is a simple and fun way to get the necessary workout and adults can do it together with their children if the trampoline surface is big enough. For the older genera-
BDLIFE:BUSINESS TRAVELLER
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Artists impression of the front view of the Fountain Hotel in Kirinyaga County. COURTESY
Construction is ongoing at the site in Sagana. EVELYN SITUMA
High-end hotels coming up in the counties

The goup intends to have a hotel o tented lodge in each of the 47 counties
BY EVELYN SITUMA
he drive from Nairobi to our destination was so short, I didnt even realise we were already at the ground-breaking venue for the Fountain Hotel, in Kirinyaga County. This was perhaps because of the smooth ride on the Thika Superhighway. The KenGen Tana power generation station was what had preoccupied my mind as we drove uphill above the bridge, at the Sagana-Kenol Road. There was signage by the road directing visitors and curious onlookers to a small earth road leading to the power plant. From a distance, the waterfall raged bringing life to the almost quiet Sagana River, owing downstream. On top of the hill was a construction site I had spotted kilometres away before Georey Wachira, the logistics manager at Fountain Enterprise Programme (FEP) brought it to my attention. According to Wachira, the building on the hill is among the 47 high-end hotel establishments FEP intends to set up in all the counties. The hotel was commissioned late last year. And on this day, investors had come to assess the progress. The main
through the property. The river is a lure for those who love water sports and outdoor activities.
Three counties
Fountain Hotel is located on the Sagana-Kenol road and neighbours three counties, namely Machakos, Nyeri and Murang a. The hotel is being constructed by a team of foreign contractors, landscapers and interior designers at a cost Sh830 million. The Fountain hotel which will have a bed capacity of 200 is in its second phase of construction. The conference hall, kitchen, a few rooms and restaurant are already complete. There is a need to increase hotel bed capacity in light of the countrys vision to attract three million tourists annually, said Chizah Wambugu, Director of FEP holdings. According to FEP, investing in high-end hotels and tented camps around the country is one way of meeting the demand.
Impression of the back lawn of one of the facilities at Fountain Hotel in Kiringaya.
COURTESY
The Ewaso Nyiro river in the background. This is where FEP Group will build a ve star tented camp and Eco logde. EVELYN SITUMA
building in this upcoming four-star hotel is already complete, save for the ttings and interior design work. The building is two storeyed and the ground oor where investors gathered for a small meeting is what will house the lobby, coee shop, kitchen and restaurant. The restaurant is enormous. On this particular day, 800 people t in comfortably, but without tables. FEP Group chief executive, John Kithaka says with tables, the restaurant can host upto 600 persons;
quite impressive. The rst oor is what is simply amazing. It feels like a never-ending room huge and airy. This room is what be a conference hall. The second oor is reserved for a few guest rooms. Its a perfect location for guests that are too tired to walk around the 26-acre facility. It also allows them to enjoy proximity to the coee shop, lobby and restaurant. But for those looking for seclusion, the drive-in cottages by the pool is a great location. For starters, the pool has a perfect view as it snakes down the rocky hill downstream to the river below. The drive-in cottage is a fantastic idea for anyone who wants to spend some quiet moment away from all the hustle and bustle. Picture a hotel where you drive in and simply check in from the comfort of your car. The cottages help guests overcome numerous check-in procedures by oering them an opportunity to check themselves in without having to worry about where to park their cars. The cottage shares the view of the KenGen power generation waterfall and the one kilometre river stretch owing
Sandy beach
In North Eastern, at the Isiolo-Samburu National Park in Shaba, FEP also unveiled a 95-bed ve star eco lodge and tented camp. The camp is strategically located right inside the park, at the Buffalo springs. On one side, as you enter the camp are two springs and on the other, is the Ewaso Nyiro River with its sandy beach. FEP interest in Isiolo sets the tempo for the envisioned resort city. Isiolo is the centre of the Lamu Port Southern SudanEthiopia Transport (LAPSSET) Corridor project which envisions two resort cities - Isiolo and Lamu. Other areas on the FEP investment map are Narok, Lamu and Kwale. The group has acquired 148 acres in Narok near the Masai Mara Game Reserve for a lavish hotel and convention centre.
BD LIFE: COVER STORY
Accoding to KTB and tavel agents, so fa thee ae ove 1,000 conmed bookings fom aound the wold fo those who want to take advantage of the best place to view the eclipse as the moon cosses the suns path
Touists geaing up fo the total eclipse in Kenya

BY SANDRA CHAO
orthern Kenya is an arid area with scorching sun that can go for months without a drop of rain. It is not your typical tourist destination. With its varying landscape from volcanic cinder elds to sand dunes, beautiful mountains to hidden lakes, fossil forests to a rich culture it is a place that is rarely visited. But in the next couple of weeks, all roads will be headed to there as tourists, both local and international, make their way to see the unique hybrid total solar eclipse on November 3. Unlike others before it, this will be a remarkable switch from partial and total eclipses shimmering across Lake Turkana as the moon crosses the path of the sun at approximately 5.22 p.m. Though the trajectory of the hybrid solar eclipse has been marked to transverse the north Atlantic and pass through some countries in Africa near the equator including Gabon, the Democratic Republic of Congo, Uganda and Ethiopia it is in Kenya, specically in north eastern that there shall be total darkness for 11 seconds. It is this corner of Kenya, at Alia Bay, in the Sibiloi National Park, Turkana, that has been identied as the best place for viewing the 13-kilometres of lunar shadow due to the predicted clear skies. We can conrm that there are over 1000 bookings for the event but we expect more astronomy lovers and adventure enthusiasts to join the caravan, said Kenya Tourism Board (KTB) managing director Muriithi Ndegwa. The new phenomenon of astro-tourism, where people travel to dierent places sited as the best places to view stars, meteorites and
1min 40sec 2049
Duration of the eclipse with the time of greatest eclipse being at 15:47:36 East African time.
Year the next hybrid eclipse will occur in East Africa.

SOURCE\WIKIMEDIA
eclipses has taken Kenya by storm opening up the northern frontier as a preferred tourist destination. It has become a must-see event, especially among scientists, as eclipses are so rare that the last one was seen in 1973 and the next is predicted to occur in 2117. There has been a lot of excitement globally about the hybrid solar eclipse. I remember getting a call from international tour operators about the packages we were having for it over a year ago, says Kenya Tourism Federation chief executive Agatha Juma. Travel and tour operators have been quick to capitalise on the opportunity with attractive packages, most of which are by air for international travellers all through to Sibiloi and by road for those locals and foreigners who are adventurous enough to take the long trek that will pass through dierent tourist destinations in the country. An opportunity to see northern Kenya, a circuit whose tourism potential the govern-
ment is looking to develop and tap into, especially with a resort city in Isiolo. There are also air packages where tourists can y straight into the parks airstrip. Yellow Wings Air Services, which operates from the Wilson Airport, is one of the companies that run private charters into Sibiloi. The packages are designed for both local and international tourists and range from between Sh260,000 to some that are going for Sh1.3 million. The travel date will be dependent on the package a tourist will choose. There are some for as long as six days or even seven days because the tourists want to take advantage of their trip to see other parts of the country, said Muriithi. Another variant for the packages is the itinerary and the routes being taken to get to the national park.
Safaris
Sky and Telescope, an international astrological site, has planned a one-week safari around the eclipse from October 29 and their packages are already sold out, according to its website. International tourists were paying $5,695 (Sh486,067) per person for double accommodation while those in single would pay $6,389 (Sh545,300). Travel Quest international has an 11-day itinerary that will go through Amboseli National Park and Masai Mara Reserve as it heads north towards Lake Turkana. They oer exibility in terms of numbers as triple accommodation is charged at $8,700(Sh741,500) double rooms are charged $9,350(Sh798,021) and those booked into single rooms are each charged $10,350(Sh881,832). The Jade Sea Journeys itinerary will go through the Chalbi desert, Samburu and
Marsabit national parks. They also have an air package where tourists y into the Lobolo camp from Nairobi on November 1 and drive to the eclipse viewing point two days later. Stacey Bisely, a tour consultant with international operator Gametrackers, said they had already received 10 conrmations of their local and international bookings for their eight-day package. This comes at a cost of $760 (Sh65,360) for foreigners, excluding ights, and Sh56,000 for locals. This will allow one to enjoy an inclusive camping trip with several game drives, visit to the volcanic craters in Marsabit, a rsthand experience of the Kaisut and Chalbi deserts with the return trip including a view of the Thompson Falls. We decided on this particular route because there is a growing interest in the northern frontier which has remained largely unexplored as a tourist destination. People want to see what is there and be exposed to the dierent cultures. We are breaking it down so that people do not get weary of the road travel, she said. Their planned safari begins from Nairobi to Samburu via the Mt Kenya route before proceeding to Marsabit. Local and international tourists will then be able to proceed to Koobi Fora via the North Horr route and later go to the eclipse site at Allia bay. Claudious Tours and Safaris, on the other hand, oers a wide range of packages from ve days to 11 days, each with its own itinerary. There will be an ocial caravan that will include major tourism stakeholders that will leave Nairobi on October 31 escorted by the tourist police to return on November 6. Charges for their eight-day safari to Turkana via the Chalbi desert for those traveling in a minimum group of four people are charged
BD LIFE: COVER STORY ATTRACTIONS TO LOOK OUT FOR AT HYBRID TOTAL SOLAR ECLIPSE TOUR IN SIBILOI, KENYA
THE ECLIPSE An annular solar eclipse is seen from Tokyo on May 21, 2012. Tourists will see the eclipse in Sibiloi fron the Ali Abbey. PHOTO\AFP
SCENERY Aerial view of Central Island in Sibiloi.
The Flamingo lake, which is also home to crocodiles and tilapia

PHOTO\COURTESY KWS
CULTURE Men from the Rendille tribe tend to camels at the Lake Turkana Festival in Loiyangalani, near Lake Turkarna in Northern Kenya. PHOTO\AFP
PHOTO\AFP
$740 (Sh63,047) per person. Civic Travel service is oering a luxury safari of Kenya and Tanzania that will include game drives to Samburu, Maasai Mara and Amboseli national parks. The $9,890 (Sh841,737)charged per person includes economy class airfare from Canberra in Australia to Nairobi. Those choosing this packages will have the opportunity to sample the luxurious accommodation at the Elephant Bedroom camp within the Samburu Game reserve, the Tipilikwani Camp when they arrive at Maasai Mara. After viewing the eclipse, the tourists will then y to Serengeti National Park in Tanzania. Those travelling with the package oered by the eclipse traveller, will spend their rst three nights at Samburu Intrepids and another 3 nights at the Mara Interpids Camp before ying into Alia Bay on November 4 for the eclipse viewing. Fountain Safaris is oering local tourists a three-day two nights full board safari package at only Sh30,000 per person sharing. The tourists will travel through Kitale and Lodwar and accommodation will be offered at the Eliye springs Camp and Lodge in Turkana. Those planning on traveling on a limited budget could drive up to Turkana with the caravan and pay the Sh200 and sh100 entrance park fees for adults and children. For every night that they decide to camp they will be required to pay an additional Sh150 for adults and Sh100 for children. Apart from the eclipse, visitors can ex-
plore the wildlife in the national parks within the region, visit the worlds largest desert lake, go to the 6 million-year-old Petried Forest and get in touch with history by visiting the archaeological sites that are managed by the National Museums of Kenya. While it is possible to travel by road from Nairobi to Maralal, then proceed to Loyangalani and nally to Sibiloi, the recommended route for the caravan is through Marsabit and North Horr.
ABOUT THE PARK

Sibiloi National Park is located to the east of Lake Turkana. Some of the wildlife unique to the park includes the Grevy Zebra and the Tiang. A 2 million-year-old fossilised skull, the Turkana Boy, was discovered in the park by Dr Richard Leakeys team in 1972. The park was listed as a World Heritage Site in 1997. It is also home to the petried forests and ancient crocodile, tortoise and elephant fossils. Park entrance fees for citizens, adults will pay Sh200 while children pay Sh100 EAC adult residents pay Sh500, while their children pay Sh250. Non-resident adults pay $25 while their children $10. To camp at the park, citizens will pay Sh150 for adults and Sh100 for children, residents will pay Sh300 for adults and Sh150 for children while non-residents will pay $15 per adult and $10 for every child Accommodation KWS will provide water for general use by the tourists. Eco-toilets at campsites will be provided by KWS and tour operators. Semi- permanent tents for camping will be provided by the tour operators and one can pay Sh50,000 to access the exclusive campsite. There will be an extra stock of fuel in case of shortages for those planning to travel via the extended airstrip. Amref and Red Cross will be on standby to provide emergency services to those who may fall ill.
Camp site
Rather than be in groups, a person could opt to travel as a free independent tourist driving with the caravan and camp at the designated areas within the Sibiloi park. In order to cater for the large number expected, the Kenya Wildlife service has set apart Sh10 million for the upgrade of the national park. The money will be used to upgrade the roads within the park, put up signage on the roads leading to the park and refurbish the visitors accommodation, said Micheal Wanjau of KWS. There are plans to extend the airstrip runway by one more kilometre in order to allow larger aircraft to land directly into the park. With the attention the eclipse has attracted, the trip to the World Heritage site has been termed as a home coming of sorts. The Turkana boy was found in the archeological sites within the park so the visit by tourists in November is like a return of sorts to the cradle of humankind, Ndegwa added.
ACCOMMODATION Swimming pool at the Ol Pejeta house at Sweet Waters

PHOTO\FILE
Chinese actress Li Bingbing is pictured in Samburu Game Reserve.

PHOTO\COURTESY AFP
10
BDLIFE: MONEY
Currently, nancial institutions are looking for ways to lure customers. FILE
Lenovo Smart tab or an iPad Mini tab. But even as the bank takes to this approach to grow its stagnating loan book, nanciers like Consolidated Bank fault some aspects of its strategy saying its not good for business.
Debt protection
According to Simon Githui, the Credit ocer at Consolidated Bank, waiving the cost of life insurance cover on unsecured loans exposes the bank, since the cover is meant to insure the life of the borrower should they die or be rendered incapable of repaying the loan. Banks often require clients taking up unsecured loans to also sign up for debt protection cover. This helps shield the loaned individual and their family members from unforeseen circumstances by settling the balance on their behalf. However, Barclays views things dierently and insists that its only reducing the cost of new loans for customers by removing the cost of insurance cover. Barclays has a loan book of Sh90 billion, which is an impressive gure by any standards. But the number has hardly grown in the recent past. The strategy to attract new loans by reducing the extra cost tied to it is part of the banks three year growth plan.
Bank emoves cost of insuance on its loans

By poviding the waive, Baclays Bank aims to absob the associated costs and give added value to customes
BY EVELYN SITUMA
inanciers are luring customers to the banking halls for new loans with all manner of gimmicks. While some attract clients with privileges placed on certain service and products, give-a-ways and discounts. others like Barclays Bank of Kenya (BBK) resolved to shoulder part of cost associated with new loans to appeal to more customers to grow its loan book. The bank waived insurance costs charged on unsecured loans, introducing a new game in the scramble for new borrowers. Barclays becomes one of the rst institutions to absorb the costs related to life insurance premiums with the goal of lowering value of the loan for clients.
Credit
According to its chief executive, Jeremy Awori the move is aimed at making the loan aordable.
In addition, its customers will access easy credit to for unsecured loan. According to the bank, clients will be advanced with up to Sh4 million payable in 72 months. By providing the waiver, we have made a bold and smart move to absorb the associated costs of providing insurance to our customers as we strive to provide added value to our customers who will now enjoy substantial savings, said Mr Awori. The waiver on insurance premium cost implies Barclays customers in need of credit will pay 1.5 per cent less than the amount previously paid out as service fee on unsecured loans. With this bold step that Barclays is taking customers will enjoy savings on their monthly payments of up to Sh3, 200 making Barclays loans among the most aordable in Kenya said Mr Awori. To entice customers further and get them to open more loan accounts, the bank will reward new clients taking up more than Sh500,000 worth of credit with electronic gadgets. The goodies include Samsung Galaxy Tablet, a
By poviding the waive, we have made a bold and smat move to absob the associated costs of poviding insuance to ou customes as we stive to povide added value to ou customes who will now enjoy substantial savings.
Barclays Bank Chief Executive, Jeremy Awori
Offset
Re-nancing is another technique used by nancial institutions to entice customers to take credit This is where the bank grants the customer additional loan to either help them complete a project in cases where the borrowed amount is inadequate or allowing a customer to apply for a slightly higher loan to oset an existing one. This approach was once used by banks to win back groups such as teachers, given the fact that they made up a large part of their clients base. Most banks lost these large groups to savings and credit societies (SACCOs) when they raised their charges. Flexible terms has become one of the most friendly tactics by nancial institutions for customers. The elastic nature of nanciers makes it possible for them to, for example, adjust loan repayment periods for customers in a bid to ease the high interest rate burden on them.
Default
Many banks in the country have, in the recent past made it easier for customers to access credit, oering a range of products. This aspect has seen their loan books grow in leaps as more takers come on board. The most important thing for borrowers to keep in mind is the fact that should they default in the repayment of these easy loans, the banks will follow stipulated procedure when dealing with the matter. It is therefore in your interest to note that regardless of the gimmick used to win you over, rules still apply.
MONEY BRIEFS
Impove eciency of you systems and cut costs

BY EVELYN SITUMA
Cost-effective service providers, are among the efcient outcomes senior executives go for in order to increase efciency and boost productivity in their businesses while at the same time saving cost, the Regus Business index shows. The world provider of work place solutions also adds that exible workspaces can have a signicant impact on the bottom line, encouraging sustainable growth. According to the study, 9, 200 business executives attest to this fact and credit it for efciency and growth in their companies. So how does one scout for a costeffective service provider? - Bidding is the most common way companies use to identify cost-effective service providers. Institutions will oat a tender inviting companies and individuals interested in providing the quoted services to apply. Each company places a bid price with details on cost and expenses allowing you to compare costs. Price is usually the dening factor in tenders. - Some companies take too long to settle the payment. While it may look like a matter of procedure, late payments often come with penalties. Therefore, it may be prudent to review some of the contracts you have with service providers and be keen on those that attract penalties in order to avoid committing the offence. Building a trusted relationship with your supplier is another key way of saving costs and ensuring that you have a costeffective supplier. However, this calls for involvement, participation and frequent communication between the company and the supplier. To build a reputable base of supply, the company needs to listen to the challenges of the supplier and together work to improve the chain. But dont forget to measure their output. Some suppliers are known for dubious transactions. Therefore, take time to scrutinise each delivery and the set budget limit to avoid running into extra costs that will lead to losses. Putting strict account control can help seal this hole.
11
BDLIFE: HEALTH
Want to quit smoking?

Get family and fiends to help you beak the addiction, BY DR MUKUHI NGANGA
moking tobacco is both a physical addiction and a psychological habit. For most people, it is part of their daily ritual as important to them as eating and drinking. Research has shown that cigarette smoking is the hardest addiction to break (even harder than alcohol and hard drugs like cocaine and heroine). The rate of relapse is very high among smokers (relapse refers to people who quit then start the habit again). This is, however, not taken seriously because society has come to accept cigarette smoking as a fairly harmless vice which is often tolerated and, in some cases, considered a bonding activity. The reality is that smoking is the single most health-damaging activity one can do. It has the ability to harm every single cell in the human body and has been linked to more cancers than any other self-indulgent risk factor. But quiting is a process and requires a realistic approach in order to increase your chances of successfully dropping the habit for good.
ousness, headaches, sleep disturbances, dry cough, fatigue, increased appetite, bloating, constipation and tremors (shaky hands). These are temporary and reduce with time.
MEDICATIONS TO HELP YOU STOP SMOKING

Nicotine Replacements
Nicotine replacements are medications that reduce a persons craving for smoking. They work by giving your body small doses of nicotine which helps reduce the withdrawal symptoms. It comes in the form of nicotine gum, patches, inhalers, sprays and lozenges.
Non-nicotine medication
Currently, there are two approved drugs available locally that can help people quit smoking. Both are strictly prescription-only drugs and are intended for short-term use only.
AVOID TRIGGERS
A trigger is anything that your brain associates with smoking. The most common triggers are:
SET A DATE TO QUIT SMOKING

Set a date for quiting and mark it on your calendar. Stay mentally and emotionally focused on this date as the beginning of a new chapter in your life.
TELL EVERYONE THAT YOU ARE GIVING UP SMOKING.

Tell family, friends and workmates that you are giving up smoking. Children, in particular, are keen observers and will always remind you of your resolution and question you when you break it. If there is someone else in the household who smokes, ask them not to do it in the house. Try and make your home and workplace a smoke free zone this helps in creating a good environment to help you stop smoking. In addition, get the support of someone who has successfully quit. Involving friends and family also helps them become more understanding of your situation once you start experiencing withdrawal symptoms.
Alcohol : Most people have a habit of smoking when they drink alcohol. To avoid this, either avoid going to the pub or drink only in places where smoking inside is prohibited. Fellow smokers: Alcoholics are advised to stop associating with people who drink in order to successfully quit alcohol addiction. Smokers need to do the same where possible. Do sit with your co-workers as they take breaks to smoke. Let your family and friends know they cannot smoke in the same room with you or in the connements of a car when you are around. Stress: After a hard day, a cigarette can seem like your only friend. Find more eective non-health threatening ways of dealing with your stress.
COPING WITH CIGARETTE CRAVINGS

Find an oral substitute: Pop something else in your mouth when you have an overwhelming urge to smoke. This includes fruits, nuts, gum, sugar-free hard candy or mints, carrots, raisins etc. Avoid fatty substitutes like cakes, doughnuts, sausages etc Drink plenty of water: It helps keep you hydrated and reduces the nicotine withdrawal symptoms Keep your mind busy: Focus on something else once the craving hits do a puzzle, read a book or newspaper article or help the children with their homework Keep your body busy: Exercise, play with your children or pet, dance, work on your garden or any other activity that causes you to focus your energy on other things other than smoking. Keep your hands busy: The hands, in particular need to be kept busy especially in the oce environment where you cant begin to do push-ups or jumping jacks to get over a
REMOVE ANY SMOKING RELATED ITEMS

Get rid of ashtrays, lighters, and all cigarettes. In addition, clean out your house, car and oce get rid of that cigarette smell in your environment. Clean all your clothes as well.
craving. In such situations, get yourself a ball to squeeze, hand grips or even sketch something with a pencil. Relaxation: Do something you nd particularly relaxing like drawing, listening to your favorite music, singing etc to help cope with stressful situations
PREVENTING WEIGHT GAIN AFTER QUITING SMOKING

It has been noted that most smokers put on a little weight after they stop smoking usually 2-3 kilograms on average. It is importatnt to understand that smoking acts as an appetite suppressant. It also dampens your sense of smell and taste (makes it less sensitive). So after you quit, your appetite will likely increase and food will taste better. In addition, some smokers replace cigarettes with comfort food and this can lead to massive weight gain. To deal with this, eat a healthy, balanced diet. Eat plenty of fruits and vegetables and limit your fat and sugar intake. Avoid alcohol, sugary snacks, sodas and deep fried foods. In
addition, drink lots of water. This will help you feel full and keep you from eating when youre not hungry. It should, however, be noted that weight gain is not inevitable for everyone once you stop smoking. In addition, if you do put on weight you can easily lose it once you have dealt with the initial stages of the quiting process. Smokeless tobacco is not a healthy alternative to smoking Snu and chewable tobacco should never be used as an alternative to smoking. It also contains nicotine and the absorption levels in the body can be upto 4 times that of a cigarette.
BE PREPARED FOR WITHDRAWAL SYMPTOMS

Once you stop smoking, you will experience a number of physical symptoms as your body withdraws from nicotine. These symptoms can start as quickly as within 30 minutes of stopping and often last for several weeks. These symptoms include cigarette cravings, irritability, mood swings, diculty concentrating, frustration, anger, anxiety or nerv-
DONT GIVE UP IF YOU FAIL.

Most people who successfully quit smoking often try several times (on average 3-4 times). If you relapse after several weeks or months of not smoking nd out why. Examine the circumstances around your failure and nd ways of dealing with them. It will only make you stronger. www.healthykenya.co.ke
12
BDLIFE:ART AND CULTURE

BY MARGARETTA WA GACHERU helenge van Rampelberg, 52, has barely had any training in wood sculpting but that has not stopped her from developing her talent to be one of the best female sculptors in the country. She was exposed to indigenous material culture from an early age, growing up in the Rift Valley, when the forests were still intact. She grew up fetching and chopping rewood in her rural home, a skill that prepared her for later in life when she started working with wood. Today, using some of the tools she used as a young girl, she makes wonderful wood statues and woodcut etchings, which are currently on display at One O Gallery in Rosslyn. Her work is inspired by the woods she grew up in. The only training the mother of three has received so far is a two-week workshop at Alliance Franaise, in 1990, where she learnt about the art of etching and wood cut printing.
Mountain of love.
Sculptos love aai with wood stated fom long ago when she would hew it fo ewood
40 yeas
Shingo spent the ealy pat of his childhood in Naiobi befoe moving back to Japan in 1974
BY BILL ODIDI
t the age of seven, Japanese Shingo Okudaira was called a young horse from the orient by Sunday Nation. This was in November 1973. By this time, the young Shingo had been playing drums for ve years, having picked up the skill from his father who played in his Universitys dance band. The young boy who was pictured wearing a tshirt emblazoned with the name Kenya was something of a child prodigy. He had also played the role of changeling boy in a production of Shakespeares A Midsummer Nights Dream. It was a month -long show, and I was very excited to play every night since it was my rst experience playing drum in front of an audience, he says. Fast forward to today, 40 years later, and he is returning to stage where his talents were rst spotted in public. The Japanese drummer will perform at three concerts in Nairobi next week with his group, the Force Band.
Drum kit
Born in Tokyo, in 1966, Shingo was given a miniature drum kit by his father as a present for his third birthday. While his father himself played drums, his mother loved Western classical music and played the violin. He moved to Kenya with his parents and spent his childhood in
Grass plates
At an early age, van Rampelberg also learnt to weave - a skill, which she says, was like childs play to learn as the family ugali was served on woven grass plates. Nobody had store-bought plates or cups back then. We also used to create our own cups by slicing gourds in two. Chelenge started painting out of loneliness, after her last born insisted on staying in boarding school with his older sister . It was actually out of loneliness that I rst began to paint, she confessed. After I agreed to leave him (her son) in school, I went out and bought all colours of paints, brushes and fabric, and then got to work painting behind our house. She hid her work under the bed so no one could see them. But one day, her husband, Marc, discovered her hidden stash
Chelenge van Rampelberg, whose work is on display throughout October at One Off Gallery in Rosslyn.
Beauty of life.
I go deep inside them and thats whee I nd the goillas, elephants and bids that I etch onto wooden plates when Im awake.
Chelenge van Rampelberg, Artist
and took it to his workmate at Gallery Watatu. It didnt take long after that for all the work to nd a home it the gallery where it sold like hot cakes Chelenge says. That is when she attended the two-week workshop, which propelled her to try her hand on dierent aspects of art. Chelenges stunning woodcuts are lled with images from her memories and dreams. She has a special anity for elephants and gorillas,
despite her never having seen the latter in real life. Her woodcut etchings as well as her life size sculptures of both forest dwellers reveal a warmth, aection and playful intimacy that are almost anthropomorphic. But both her sculptures and her woodcut plates, which represent 10 years of efforts, also dwell on another important dimension of her life, the family. It includes pregnant women and childbirth.
In fact, some of Chelenges most powerful sculptures are of women. Another is of a woman who has just given birth, while there is one of a couple dancing in an intimate embrace.
Theme
The theme of family aection recurs in her woodcuts as well as her mama gorilla playing with her children. There is also the regal elephant dubbed Queen Mother of
13
BDLIFE:ART AND CULTURE
late, jazz musician etuns to Kenya

VENUES AND COST OF SHOWS
First performance will be at the Carnivore Subsequent shows wil be at the Kenya National Theatre Sh800 Sh500
Japanese Jazz musician Shingo Okudaira.
COURTESY
CULTURE EXTRA
Left: The Mau Mau Freedom ghter sculpture at Paa ya Paa . Inset: the late Samwel Wanjau who passed away on September 25th.
Nairobi until the family moved back to Japan in 1974. He proceeded to study jazz drumming under the tutelage of Jimmy Takeuchi and played his rst gig in 1975 at a jazz club. The same year, after being showcased on national TV, as a young drum genius, he held his rst recital in Alaska, US.
Debut album
He released his debut album, Modern Voyage, at the age of 12 and was later invited by alto saxophonist Toshiyuki Honda to join his band, The Burning Wave. He played drums in this band and others for a while but his education was suering so he put his music on hold to nish high school. He then joined Hosei University where he resumed the pursuit of music by joining a band with two pianists, Mikio Masuda and Fumio Karashima. At the age of 24, he moved to New York to follow his dream as a jazz musician. He gained the trust of
many musicians and was hired as a regular drummer for dierent jazz artists including saxophonist Carlos Garnett who was once played with Miles Davis In his 19 years in the U.S Shingo collaborated with many musicians, including saxophonists like Mark Gross, Tim Armacost, pianist Duke Jordan and guitarist Sheryl Bailey. His adventurous style of drumming is distinguished for spontaneity and energy. I developed my drum skill and technique especially when I was in New York City, it is such a competitive city for Jazz musicians, says Shingo.
has toured with widely, saxophonist, composer, producer and his old mentor Toshiyuki Honda and Takashi Sugawa on the Double Bass. Shingo is by no means the rst Japanese jazz artist to have a close association with Kenya. Saxophonist Sadao Watanabe rst came to Kenya in 1972 and has collaborated with musicians in both Kenya and Tanzania, exploring the many possibilities that arise out of the fusion of jazz with African rhythms. Incidentally, Shingo and Watanabe have played together many times in the past. Performing alongside the Japanese drummer during the show will be Kenyas The Umoja Calabash Percussions. I hope I can add the real African variations to my drumming after our collaboration concerts in Kenya, says Shingo.
Concerts
The concerts are part of cultural events that started last month and will go on till November to celebrate the Golden Jubilee of relations between Kenya and Japan. Shingo has released six albums to date: Modern Voyage of 1978, Kili in 1995, Maconde a year later, Alisema in 1998, The Force in 2009 and I Didnt Know What Time It Was in 2013. He explains that some of the titles have a Kenyan connection because of all the good memories of the country that he has visited no less than ten times, including for his honeymoon in 1991. The rst performance is on October 16 at the Carnivore Simba Saloon with the two other shows being held at Kenya National Theatre on October 18 and 19. Tickets are available online and retailing at Sh800 for the Carnivore event and Sh500 for the Kenya National Theatre shows.
Tibute to one of Kenyas most ceative sculptos

BY MARGARETTA WA GACHERU giant of Kenyan creative genius passed on two weeks ago on September 25th when one of our greatest East African sculptors Samwel Wanjau died from a stroke at his home in Mukurueini, Nyeri County. Wanjau is best remembered for his 12ft Mau Mau Freedom Fighter which he created out of reinforced cement and steel wire after being commissioned by the then Attorney General Charles Njonjo. It was meant to stand at the entrance of Parliament Buildings, but when Njonjo saw it, he rejected it on the spot, Wanjau had told me when we met in the mid-1980s at Gallery Watatu. He was never paid by the government for his eorts, remembered his rst-born son Jackson who, with his younger brother Anthony, are both sculptors following in their fathers footsteps. As Wanjau s full-sized Freedom Fighter together with a miniature of the same have never left Paa ya Paa Gallery since it was there that Wanjau constructed both sculptures.
Japanese musicians
He moved back home in July 2010, where he rejoined his band that has become one of the main forces of jazz in the country. Shingo will be playing at the Nairobi concerts alongside some of the very best Japanese jazz musicians, Fumio Karashima, a keyboardist he
1960s
Wanjau had made his way to Paa ya Paa in the mid-1960s when it was still situated at Sadler House on Koinange Street. He had previously worked in Gikomba among Akamba wood carvers until he heard about the one indigenous African art gallery in town. He had grown tired of carving antelope, and wanted to develop as a sculptor, says Njau who encouraged Wanjau to start exhibiting his own artwork both at Sadler House and at Elimo Njaus other gallery in Tanzania. That was in 1966 and from then until the mid-1980s, Wanjau worked closely with PYP, especially after the Art Centre shifted to Ridgeways and Njau oered him an open-air studio where Wanjau would come from Kangemi and work daily for more than a decade. During that time, he would travel to Tanzania and Sweden with his art. His works were also exhibited in Canada, the UK as well as all over Nairobi. But in the mid-1980s after Ruth Schaner bought Gallery Watatu, and all of Wanjaus available art. She bought from us at throw-away prices and then resold his work for much more than we did, recalls Njau. Wanjau left Paa ya Paa soon after that, leaving Schaner to manage his sales and his exhibitions. By the time she died in 1996, Wanjau had already moved back to Mukurueini, but not before Schaner had markeed his art in the US, Germany and Kenya. Wanjau did not die a rich man, despite his sculptures being among the most highly-prized artwork produced by any Kenyan. His legacy continues with his two sons, Jackson and Anthony whose sculptures can be found at both Kuona Trust and OneO Gallery.
Queen of the Jungle etching.
The forest is our home.
the Jungle. Chelenge may not have gone to a formal art college, but her early years were lled with indigenous artistry that have continued to inuence her work to date.
Recycled saw dust

The wood she works with is more diverse than the one she carried back home, growing up. Today, she sculpts using everything from doum palm, ebony
and jacaranda to avocado, sikotoi and even the man-made wood created from recycled sawdust. The ongoing exhibition, which will be on through October, is her rst art exhibition in more than a decade, her last having been in 1998 at the Italian Institute of Culture. She is showcasing her artistic vision, which is inspired by her younger days.
I just wanted to be your friend.

ALL PHOTOS BY MARGARETA WA GACHERY
14
BDLIFE: EAT OUT

PUB REVIEW
Fancy club in Noth Coast

BY JACKSON BIKO
ou are in North Coast - sitting in your sanitised hotel room after a long day of meetings and seminars and all those things that take everybody to the coast. You arent so tired, neither are you too thirsty. But you could use a drink. The hotel bar is a no-no; most are dead boring, plus you are avoiding the same suits from the seminar talking shop. If you ever nd yourself in this situation, call a cab guy, slip into your shoes and head out to Nakumatt City Mall. Go up, to the top oor where Sheba Lounge sits. Immediately you walk in, you will notice the architecture is smart. Since Mombasa is hot, even at night, they opened up the roof and sides, which means its aerated naturally. Sit at the edge of the balcony, with a view of the dance oor. Everywhere has a view of the dance oor.
Above: Those who choose to sit outside get a good view of Westlands at night. COURTESY
Left: Interior of the restaurant . COURTESY
Welcome avou of New Yok takeout classics at Taste of China

The estauant has settled into its new, beezy home with thee dining aeas fo a leisuely meal, lling potions, pompt and seamless sevice
BY MONICA SAPIRSTEIN BERG aste of China, formerly at Prime Apartments, on Rhapta Road, has settled well into its new home at the spacious top-oor on the VIP Plaza building on Westlands Road. Separated into three dining areas including a breezy outdoor terrace with an expansive view, the dining areas are spacious and comfortable, encouraging a leisurely meal, while service was prompt and seamless. We opted to sample the starters and main course, which reminded us of a classic Chinese eatery takeout in the US. The cuisine, while perhaps not entirely true to its Chinese heritage, has been artfully adapted to suit the local clientelles tastes. It seemed more like New York-style Chinese, i n a good way, that is reliable, approachable dishes which translate to comfort food for most.
Waitresses
Secondly, you will notice the waitresses - they are all Ethiopian or look Ethiopian. They are all pretty. Now you can order a drink. Pricing is very fair. Beer is Sh200. For a club with such beauty, you should be grateful. Wednesdays is Salsa night, at least thats what they were playing until midnight, before they switched to some funky club music that will get SHEBA LOUNGE all to the dance oor. Talking of Salsa. It is PRICES (per tot) generally a showy dance. Its always a couple who Johnnie Walker have been practising for Black: Sh 300 a decade twirling on the Amarula: Sh 250 dance oor, waists spinMyers Rum: Sh250 ning, legs shooting in Hennessy VSOP: the air, bodies writhing Sh600 and thrusting and basiBeer: Sh200 cally doing this well choreographed moves that incite both disgust and envy in equal proportion. At Sheba lounge, you will see these couples. A bunch of show-os, making everyone else shy to show their mediocre moves on the oor. Good thing I cant dance Salsa so I sat and watched and tried not to roll my eyes.
the crackers and picks provided, though we opted to use our ngers to get every last bit. The house special fried rice was more than an accompaniment, it could stand on its own as a meal, with ample pieces of chicken, beef, prawns, pork, egg and assorted vegetables tossed in. The double fried pork was crispy but moist with subtle heat that enhanced the avours of the pork, carrots and green peppers. No Chinese meal is complete without noodles, try the crispy fried noodles, with the black bean sauce that should be poured over the noodles early so they soften while soaking in the taste of the beans and garlic.
We nished the meal with lychees, date pancakes and banana fritters, all served with vanilla ice cream.
High quality
Chef Arty is not afraid of avours, and each dish was well seasoned without over-use of salt or spices. The dishes are fairly priced for the high quality and generous portions, encouraging sharing, or getting a doggie bag. The menu is available for delivery, and can be ordered on line via the website. They also oer outside catering. For more please log onto www.eatout.co.ke
Intiguing name fo cocktail

he Ward Eight is a classic whiskey sour, with a hint of grenadine, which adds a touch of sweetness. Its assumed that the cocktail was created at Locke-Ober, in Boston, around 1898 and named for Bostons 8th ward. There are many other stories some that diere on the who, when, and where, but one thing is agreed upon: it was created around the turn of the 20th Century in Boston.
Large pieces
We started with the Pan-Fried Vegetable Dumplings, served with a tasty dipping sauce, which we insisted on keeping through the entire meal. The dumplings had a good texture and lled with mixed vegetables with a soft and crispy dough. There was the Crispy Fried Tofu crunchy cubes of soft soybean curd, avored with just the right amount of chili oil and spring onions. A fresh take on Dragon & Phoenix, chicken wings were served like lollipops of minced prawn and chicken stued in the deboned wing and avored with chili and garlic. Crab cooked in Ginger-Onion sauce was a clear favourite among the main dishes. Word of caution , though, do not order it on a rst date. The meat was sweet and tender, served in large pieces, easily maneuvered out of the shell with
Mature
The crowd is mature. There are a few hookers though, but then this is the Coast. Besides, a woman s gotta do what a womans gotta do. At least they are not tacky. And they wont harass your woman in the washrooms while she is powdering her nose. So ignore them. Sheba is eight months old. But you cant tell, its really picked up well. There is a live deejay at the entrance. who knows his music. At 1am (if you still have the stamina to stay out that long) you will climb o your stool and brush past the lady with endless legs and red lips and go down. At the ground oor, youll nip into another club called the Lounge. Its swanky, full of a more snobbish Mombasa crowd. Drinks are more expensive but you arent going to drink anymore, because you ight is at 11am. So you walk in, go right to the washrooms and walk out.
Ward Eight Recipe 2 oz bourbon or rye whiskey 3/4 oz lemon juice 3/4 oz simple syrup Dash of grenadine Orange slice and maraschino cherry for garnish Method Pour the ingredients into a cocktail shaker lled with ice. Shake well. Strain into a chilled cocktail glass or a Collins glass lled with ice. Garnish with a cherry and orange slice ag.
Ward Eight cocktail.
COURTESY
editor@eatout.co.ke
15
BDLIFE: MIND GAMES

QUICK CROSSWORD
Across 1 Irritate (4) 3 Pastry (5) 7 Similar (4) 8 Western (10) 9 Gigantic (4) 12 Crush (11) 13 Mawkish (5) 15 Bowl (5) 19 Substitute (11) 21 Squall (4) 23 Fan (10) 24 Spy (4) 25 Shade (5) 26 Epochs (4) Down 1 Flowering (10) 2 Inscription (7) 3 Overcast (6) 4 Incalculable (6) 5 Bisect (5) 6 Bigotry (4) 10 Weaponry (4) 11 Deafening (10) 14 Signet (4) 16 Feeler (7) 17 Draw (6) 18 Lure (6) 20 Sprang (5) 22 Pinnacle (4)
26,350
SUDOKU
116
WORD WHEEL
433
Insert the missing letter to complete an eight-letter word reading clockwise or anti-clockwise.
CODEWORD
Each number in our Codeword grid represents a different letter of the alphabet. For example, if 18 represents C, ll in C every time the gure 18 appears. You have two letters in the control grid to start you off. Enter them in the appropriate squares in the main grid, then use your knowledge of words to work out which letters should
3104
go in the missing squares. As you get the letters, ll in other squares with the same number in the main grid and control grid. Check off the list of alphabetical letters as you identify them. SOLUTION appears in Business Daily on Monday.
TIMES CROSSWORD
Across 1 Round head of moor is jolly high (4) 3 Back crazy request to girl for source of attar (6,4) 9 Theres something lacking if edict has to be put out (7) 11 Richards opponents condition after light lunch? (7) 12 Markings on bat from China? (6,7) 14 Host makes way into garden (5) 15 Event in Irish town unnished after a month (9) 17 Fail in court to secure title at rst, so decline socially (4,5) 19 Boy wearing cap and cape lying in the sand (5) 21 Married, keep losing head shame! (13) 24 Add impurities to cement after cut-back (7) 25 Further bird that talks back to golden eagles leader (3,4) 26 Finishes, having surpassed such a line no sense going on (3-7)
24,046
WORD BUILDER
434
TRIO
432
How many words of three or more letters, including plurals, can you make from the ve letters, using each letter only once? No foreign words or ones beginning with a capital are allowed. Theres at least one ve-letter word. Good = 16; Excellent = 22; Amazing = 29
These four words can be completed using the same three-letter sequence. Can you nd it?
27 Scotsman chosen to speak (4) Down 1 Try to rise twice, and fall (2,8) 2 One warming hands, old ears (alternately) and neck (7) 4 The exact opposite, as pointed out (9) 5 Advantage of hound not evident at rst (5) 6 A Life of the Marches is very
dark, lit badly (8,5) 7 Book the First, for One (7) 8 Seabird sailors shot through middle of feet (4) 10 Sort of TV of course thats not working (6,7) 13 Committal having alien nally conned (10) 16 Round stone is to produce rattle (9) 18 Said more than enough for ne, being tried (7)
20 Capital Spaniard raised, expending energy for nothing (7) 22 Cooler at height, so get coat (3,2) 23 Weapon locked up by keeper (4)
YESTERDAYS SOLUTIONS
SOLUTION FOR TIMES CROSSWORD AT LEFT YESTERDAYS SUDOKU AT RIGHT SOLUTIONS FOR QUICK CROSSWORD. WORD WHEEL, CODEWORD, WORD BUILDER AND TRIO WILL APPEAR IN BUSINESS DAILY ON MONDAY
16
BDLIFE: WEEKLY PLANNER
ART African Rhythm Exhibition: Banana Hill Art Gallery, Until October 18th. An exhibition by Paulo Akiiki. He is a contemporary African artist-painter from Uganda, and has widely exhibited both locally and internationally. Zihan Kassams The Bicycle Man Exhibition: Talisman Restaurant, Until Oct 20th. This is Zihan Kassams 3rd annual Talisman exhibition. Traces - 2 Printmakers in Nairobi: Le Rustique Restaurant, Until October 20th. An exhibition by Swedish artist AnnKristin Kllstrm and Nairobis Wycliffe Opondo. Eunju Nam, Love and Harmony of Kenya: Nairobi National Museum, Until October 24th. To Wood Not Lost: Alliance Franaise, Nairobi, Until November 10th. Ugandan artists and craftsmen Sanaa Gateja, called the Bead King and Charles Kamya, sculptor, come together in an exhibition where black cloth, recycled paper and chopper wood are turned into objects of art, craft and fashion. Clayability! Pottery for All: Nairobi Art Centre, Sundays. Learn how to make objects, pots, cups, vases out of Nyeri clay with techniques such as coiling, pinching, slabbing and throwing on the wheel. THEATRE. Wamathai Spoken Word: Louis Leakey Auditorium, Nairobi National Museum, October 12th. Featured performances by Elani, Adelle Onyango, El Poet, Eudiah Kamonjo, Mwende Ngao and Raya Wambui. Apples From The Desert: Phoenix Players, Until October 26th. An award winning play written by Savyon Liebrecht. Its set in Israel and its a romantic comedy dealing with freedom; religious freedom, career choice, romance and all sort of freedom that a young lady with a strict dad and suppressed mother craves. Fatumas Voice by Kenyan Poets Lounge: PAWA254, Fridays. Featuring: Poetry, music, motivational talks and many more. Every Friday.
MOVIE OF THE WEEK

R.I.P.D. A recently slain cop joins a team of undead police ofcers working for the Rest in Peace Department and tries to nd the man who murdered him. Genre: Action, Comedy, Crime Cast: Ryan Reynolds, Jeff Bridges, Mary-Louise Parker
Project Shame Karaoke Night: Sheebeen The Bar, Thursdays. Hosted by vuvuzela Martin Kariuki. No judges, no dance routines, no voice training, just pure fun. SPORTS Advance Raft Guide Training: Savage Wilderness Safaris, Oct 14th-18th. Kenyan Premier League Football Fixtures: October 16th. Muhoroni Youth vs Ulinzi Stars, Muhoroni. Bandari vs Homeboyz, Mbaraki. Sofapaka vs Chemelil Sugar, Nyayo. Thika United vs GorMahia, Kasarani. City Stars vs Karuturi Sports, Hope Centre. Western Stima vs AFC Leopards, Afraha. KCB vs Sony Sugar, City. Tusker vs Mathare United, Kasarani. Boot Camp - Kick Fit, Kick Fat, Keep Fit: Purdy Arms Restaurant, Mondays & Fridays, Tuesdays & Thursdays. Sick of being stuck in the gym? Get the body youve always wanted and have fun outdoors! Ice Hockey Wednesdays: The Panari Hotel, Wednesdays. All interested people should join the Kenya Ice Hockey group on Google Groups to conrm when interested in playing and if a game is on. CAMPUS EVENTS Mr & Miss CUEA: Carnivore Simba Saloon, October 12th. My culture, my pride, my identity. Featuring Avril. On the decks DJ Andre and DJ Lemmy. NATURE Nairobi Forest Rides: Malo Stables, Daily. Experience the beautiful Dagoretti forest with views to the famous Ngong Hills where Karen Blixens lover Denys Finch Hatton is buried. Morning Birdwalks: Nairobi National Museum, every Wednesday. Join Fleur and the rest of the team for yet another fun lled informative bird walk. Get to choose the place to visit on the very morning you are leaving. YOGA Secrets of Meditation: Abha Light Foundation, Mondays. Come for a 1 hour lesson and learn the basics of yogic meditation. Daily Yoga Sessions - Mondays: Karen Studio. Tuesdays (Flow Yoga): Taut Studio Village Market, UNRC , Holiday Inn Mayfair Hotel Westlands. Wednesdays: Open for private sessions. Thursdays: Karen Studio (Ashtanga Yoga). Fridays (Ashtanga Yoga). Lily Pond Yoga Classes: Lily Pond Arts Centre in Nanyuki, Tuesdays. With Sue Fusco. Bikram Yoga Nairobi: Bikram Yoga Studios, daily. Lose weight, de-stress and feel great. KIDS EVENTS Aqua Kenya Swimming Club: St. Austins Academy, Until October 12th. Join Aqua Kenya Swim Club and improve your swimming. Children from 4+ learn how to swim competitively. Behaviour Management & Early Learning In The Home Preschoolers To 3rd Graders: Braeburn, Gitanga Rd, October 17th. Do you ever give in to what your child wants just keep the peace? SEP
has organized a workshop on behaviour management. Ballet in Kibera: KAG Olympic Educational Centre, Until October 31st. Inside the schools large open space are several groups of primary school children getting trained on painting, craft making, music, theatre, acrobatics and dance after classes; all facilitated by Annos Africa (AA) a UK based charity The Skate Studio Limited Inline Skating: Jalaram Academy, Saturdays. Offering coaching for inline skating, roller hockey, speed skating, ripsticks and dance skating. Nairobi Childrens Orchestra: Peponi Prep School, Lower Kabete, Saturdays. One of many initiatives aimed at developing ensemble opportunities and experience for young instrumentalists in Kenya aged 5- 14 years. SPECIAL EVENTS BoConcept New Collection Launch: BoConcept Kenya, October 11th. Join BoConcept Urban Danish Design for a game of ping pong, Naked Pizza and beer with friends and family as they launch their latest collection. National Malaria Walk 2013: Kenyatta International Conference Centre, October 12th. Kenya NGOs Alliance Against Malaria (KeNAAM) will be hosting a national malaria walk Nairobi to raise funds to buy mosquito nets. The chief guest will be the rst lady Margaret Kenyatta. 155th Championship Dog Show: East Africa Kennel Club, October 12th- 13th. An event by the East Africa Kennel Club and judged by Mr Stephen Bardwell (UK). Newrishments 12 Weeks Of Christmas Weight Loss Challenge: Nairobi Club, Until November 30th. Manage your weight through successful coaching, nutrition and exercise. Lose a minimum of 2kg per week. Churchill Live TV Recording: Carnivore Restaurant, Thursdays. Meet this great comedian, artistes, guests and enjoy great music. EXPOSITIONS The Kenya Orchid Show 2013: Sarit Centre, October 16th-21st. An annual event organised by Kenya Orchid Society featuring a plant sale during the opening hours. FOOD/WINE Organic Farmers Market: Talisman Restaurant, Saturdays. Le Palanka Family Day: Sundays. Invites you and your family every Sunday to relax with a special menu designed for you. Build Your Own Burger: Brew Bistro and Lounge, Tuesdays. Clients can choose from over 40 toppings and create their own burger. Tamarind Seafood Special Dinner: Tamambo Village Market, every Wednesday to Sunday. Bar.B.Q Ladies Night: Bar.B.Q Tonight, Thursdays. BBQ Tonight is calling all ladies every Thursday. Get a free drink of your choice with your dinner every Thursday.
HOT EVENT OF THE WEEK

The Heineken Mingle (2nd Anniversary): Ngong Racecourse, October 12th. You can discover more about a person in an hour of play than in a year of conversation. Featuring bladaa, katii, zumba, karaoke, PS3/Wii and performances by DJ Creme, DJ Joe Mfalme among others.
Afrique - History of a Continent: Alliance Franaise, Nairobi, every Monday in October. A 4-part documentary series, 90 min. each on colonialism, war, independence, dictatorship, democracy. Japan Video Topics (JVTs) Screening: Japan Information and Culture Centre, Fridays. Each DVD is fteen minutes long. Bring Screen Film Night: Lily Pond Arts Centre, Nanyuki, Wednesdays. Enjoy your favourite lm on the big screen, with a drink (or two). MUSIC The Return of Shingo Real Jazz From Tokyo: Carnivore, October 16th. A jazz concert starring the Japanese jazz Drummer Shingo Okudaira and the Force Band from Tokyo. Thursday Nite Live featuring Them Mushrooms: Choices Pub and Restaurant, October 17th. Thursday Nite This week, featuring Them Mushrooms. Tamambo Karen Friday Live Music: Tamambo Karen Blixen Coffee Garden, Fridays. Start your weekend every Friday with the famous Street Legends band live. Ice cold beers, wines and sizzling bitings. Afro Rhumba: K1 Klubhouse, Wednesdays. Experience happiness with Kitts Band live on stage. Wednesday Jazz Live: Sarova Panafric Hotel, Wednesdays. Enjoy a selection of succulent ribs and chops and our classic cocktails all complimented by the ne, jazzy tunes of the talented Limericks Band. Jazz Funk & Soul with Different Faces Band Live: Sailors, Anchor Bar, Wednesdays. Jazz Funk and Soul Wednesdays featuring the Different Faces Band live every Wednesday.
Saturdays. FESTIVALS/ CRAFT FAIRS Maasai Market: Fridays at Village Market; Saturdays & Sundays at High Court Grounds; Sundays at Yaya Centre; Wednesdays at Capital Centre. Taking place at various locations in Nairobi, the Maasai Market is vibrant and the place to get beautiful sculptures, shoes, jewellery, clothes and a huge selection of other Kenyan crafts. The Junction Musical Maasai Market: 3rd oor parking, the Junction, Thursdays. For a wonderful selection of arts and crafts, wooden carvings and beadwork. FILM 3rd Brazilian Film Festival: Alliance Franaise, Mombasa, Until October 12th. The Embassy of Brazil proudly invites you to the third edition of the Brazilian Film Festival in Kenya, which will feature some of the most prominent names of Brazils lm industry. IMAX Film Festival: IMAX 20th Century, until October 17th. Featuring Elysium, The Mortal Instruments, World War Z, Pacic Rim, Star Trek, Man of Steel, Iron Man, Fast and Furious, Metallica.
NIGHTLIFE Kenya Nights - One Night in Berlin: The Tree House, October 12th. Berlin, the mecca of underground music, nds its way to Nairobi with Bunga & Bunga with a style of Pirate Techno, Swing Electro and Deep House. Cocktail Wednesdays: Secrets Lounge, Wednesdays. This is the only place where you can get the best of the best cocktails in town. Music by Bugika Ents Finest Djs: Dj Creepa and DJ Mr Fabz. Money Fridays: Santa Fe Lounge & Grill, every Friday. To all party lovers, Santa Fe Lounge presents Money Fridays every Friday with G-Money and ZJ Heno spinning the best Reggae Culture and Dancehall.
DANCE
Zumba Instructor Training: Southern Sun Mayfair Hotel, Oct 12th. With Zumba Education Specialist (ZES) Lucas Mthenjane from South Africa. Zumba Master Class: Pattni Brotherhood Hall, 4th Parklands, Oct 13th. With Magic Mike and Luca Mthenjane (ZES) from South Africa. Salsa Classes: UoN School of Business, Lower Kabete, Thursdays and Fridays. Come have fun, make friends and learn a lifelong skill. Hip Hop Dance Class: Shani Active Gym, Saturdays. A new hip hop dance class. The rst 4 sessions are free. Salsa & Latin Dance Classes: Southern Sun Mayfair, Saturdays, beginners, intermediate and advance 3pm- 4pm. Zumba Classes with Miriam: International School of Kenya- Mondays, private class, ISK students only. The Oshwal Sports Complex Gym-
Thirsty Thursdays: The Ofce Bar and Lounge, Every Wednesday. An amazing weekly event for everyone whose exchange of ideas are an effort to revitalize the urban life with great musical entertainment. Memos Oldschool Sunday: Memos Club, every Sunday. Live video mixing with DJ Sam Stinger and DJ Macjoj. Featuring soul, rhumba, country, swing, blues, lingala, funk, hiphop and many more. Funky Fridays: The Greenhouse, Fridays. Featuring grown folk music.
For the most comprehensive event information in Kenya: www.kenyabuzz.com Tel: 0727 288 036
SPECIAL ADVERTISING SECTION
COMMUNICATION SYSTEM IN KENYA
FIBRE OPTIC
Fibre optic technology bringing the Internet home

By EVANS ONGWAE >>> eongwae@ke.nationmedia.com
enyas information technology revolution is ongoing. All the ingredients of this phenomenon are falling in place and it is only a matter of time before the data explosion.
One only needs to take a walk along some of Nairobis streets and to the estates to conrm that the network for data and voice is being laid down. The digging up of the earth and laying of bre optic cables is taking the Internet to the last mile. The Internet is, truly, coming home. Surrounded by underground bre optic cables, estates are becoming the last frontier for the spread of internet. According to business experts, the future of the telecommunication industry in the world is in data, mainly catalysed by the younger generation (aged 25 45 years) and whom every player in the industry is targeting. This has prompted many Internet service providers (ISPs) and telecommunication companies to take huge steps in connecting home us-
ine Cable t Jesus on ble landed e country see most drastically o
Workers dig trenches to lay bre optic cables outside Nation Centre along Kimathi Street in Nairobi, July 21st, 2013. PHOTO/STEPHEN MUDIARI ers directly to the bre optic cable. The changing of licensing regime in Kenya in 2009, which allowed ISPs to not only oer services to corporate users but also to individuals, has further opened up the home markets to more players, more reliable connection and better uptake capacity. The market has also witnessed the introduction of smartphones and laptops, making the access to all these services more convenient. Once bre optic technology landed, Kenya took a headlong dive into the fantastic realm of information and communication technologies (ICTs). This is a major undertaking in the race to make Kenya competitive in the digital age and dovetails into various national development policies and strategies aimed at uplifting the living standards of the people. It is in line with the governments goal of turning Kenya into the ICT hub of Africa. Investment in this enabling infrastructure is expected to transform the Kenyan society socially and economically in a way never imagined before. This is transforming the nation into a knowledge society by making ICT accessible to many. Fibre optic technology is empowering Kenyans and other East Africans to become fully digital citizens of the 21st Century as it is giving the region aordable high-capacity bandwidth. East Africans have now become part of the global communications village. Fibre optic increases bandwidth or Internet speed, which in turn determines how much information a computer can send or receive through a high-speed Internet connection. For long, the country has relied on satellite-based Internet links that are slow, unreliable and expensive. Expensive and unreliable telecom-
According to business experts, the future of the telecommunication industry in the world is in data, mainly catalysed by the younger generation (aged 25 45 years) and whom every player in the industry is targeting.
munication services have been a major hindrance to investment. The bre optic project is expected to cut Internet costs to nearly one-third of current levels over the next ve years and boost investment in Africa. As the country moves into the future, Kenyans will depend on information and communication services to undertake various social and economic activities and improve their lives. The bre optic is one of the tools that will make this possible. Fibre optic technology has enabled many companies in Kenya today to access their customers directly online. Businesses can sell their products and services and receive payment using mobile money transfer technologies. Highspeed Internet connection and capacity to transfer huge amounts of data have signicantly reduced the costs of communication and doing business. In addition, bre optic cables have no radiation risks and oer the most secure data transmission, an important feature for most organisations transmitting condential and important information. The bandwidth suppliers sell their bandwidth capacity to ISPs. The ISPs then resell the bandwidth to consumers, most of which now are targeting home users. The extensive networking being undertaken by private developers has seen the rise in the number of households accessing bre optic Internet links. Governments have also invested in a national bre optic network that will take bre deeper into rural areas where opportunities are abound. It is evident that, with bre optic technology, new businesses have been and are still being set up in every sector of economy. Internet access for example will open new unexplored markets. Existing businesses are also expected to see signicant reduction in costs of Internet connections, besides enjoying high-speed connections.
Kenyas ICT revolution oers opportunities for jobs and business

Fibre optic infrastructure will not only benet Kenyans directly but also indirectly by serving as a magnet for investors who will provide jobs. Generally, the unfolding information and communication technology (ICT) revolution in Kenya is expected to create jobs, contribute to revenue generation, enable the realisation of Vision 2030. Globally, ICT-led growth is creating jobs, raising productivity, increasing incomes and opening many opportunities for trade and human development. Extensive application of information technology now provides op-
portunities for new ways to create wealth thus contributing signicantly to poverty alleviation. In helping lay an undersea cable, the government took note of the growing need for business process outsourcing (BPO) as well as IT-enabled oce space and moved to put in place the requisite infrastructure and facilities to tap into this demand. Kenya is preparing to become a BPO hub in the region. Information technology was identied as one of the mini-pillars to help the country realise its 2030 vision. Vision 2030 is Kenyas development blueprint aiming at making the country a newly industrialising middle-income nation, provid-
ing high quality of life for all the citizens. It is a long-term plan to positively transform the lives of Kenyans. ICT could become a major export from Kenya through outsourcing of services to other countries. This is a new but promising sector to Kenya and especially to its young people. It involves providing business services via the Internet to companies and organisations in the developed world such as Britain, USA and Canada, among other highly industrialised nations. Under Vision 2030, Kenya is to become one of the top three BPO destinations in Africa.
CONTINUED ON NEXT PAGE
II
COMMUNICATION SYSTEM IN KENYA Kenyas ICT revolution oers opportunities for jobs and business
CONTINUED FROM PREVIOUS PAGE
FIBRE OPTIC
The world over, information technology is changing business. A key issue for business today is how to get the right information to the right people at the right time. Knowledge, more than physical assets, is now the key to successful competition in the business world. The Internet is changing the way people do business. A majority of companies worth their name now use the Internet to share data, process orders, specications, invoices, and even payments. If they can access the Internet cheaply as it promises to be in Kenya in a few months, they would go for it. As a hub for call centres and BPOs, the country will have something to oer multinationals. Companies that want to spread wings to the region do not have set up physical oces as they will be ably supported by the BPOs serving as their call centres and back oces. This has been tried elsewhere including locally and has been found to work. Therefore, there is no doubt that Kenya can start enjoying the global outsourcing windfall. Kenya is a strategic trading partner within the East African region due to its geo-politi-
A strong bre optic backbone will ensure that the country has the required infrastructure that will enable attainment of ICT competences to compete on an equal footing with the rest of the developing economies. This project will enable the government to implement the e-government strategy and enhance service delivery to the public which will ultimately reduce the rural-urban migration through creation of new opportunities for businesses in the rural areas. For instance the terrestrial cable network will facilitate the establishment of digital villages at constituency levels. With reliable telecommunications, Kenya will be able to develop the BPO sector.
Engineers pull the Eassy Submarine Cable from a ship that docked at the Fort Jesus on March 22, 2010. The Submarine cable landed in Mombasa and ushering into the country the third Fibre Optic Cable that will see most internet providers lower their prices drastically by August this year. Fredrick Onyango cal importance. The country is already well established as the regional industrial and business hub. And now, the government is actively marketing the country as a BPO hub and is working to reduce the prevailing high cost of bandwidth. When trade and investment grow, the country will rely less on aid. It is noteworthy that Kenya has the most skilled workers in East Africa and low cost labour. Other elements that should attract foreign investors are a fairly stable currency and market bigger than its neighbours.
A strong bre optic backbone will ensure that the country has the required infrastructure that will enable attainment of ICT competences to compete on an equal footing with the rest of the developing economies.
Universal Gift Centre home to Pelican products and camera equipment

For people laying bre optic cables and similar installations, Universal Gift Centre, Nairobi has protective gear, accessories and lighting equipment for their use. These are products sourced from world-renown USbased rm Pelican Products. Pelican Products, Inc. is the global leader in design and manufacture of both highperformance case solutions and advanced portable lighting systems. It is the largest manufacturer of equipment protection cases in the world. Their products are used by professionals in the most demanding markets including reghters, police, defence / military, aerospace, entertainment, industrial and consumer. Pelican products are designed and built to last a lifetime. They have a lot of dierent sizes and design of protective case. You will be sure to nd the right size of case for your need. Also they make a lot of dierent kind of light, including ashlight, scuba diving, battery operated remote area lights which are ideal for using in places where there is no electricity and emergency use. Pelican Products, Inc. has been an internationally-oriented company from its inception. In fact, our very rst product the Pelican Float was designed for scuba divers, many of whom know that most of the best diving spots are outside of the United States! Today, our products are ocially distributed in over 140 countries. The companys 200,000 square feet corporate headquarters, located in Torrance, California now serves as the home oce for nearly 1,500 employees worldwide. In addition to operating in 12 countries, with 22 oces worldwide, Pelican also maintains six manufacturing locations in North America and Europe. Pelicans product line and company have grown steadily over the years. Nairobi-based Universal Gift Centre that distributes Pelicans products and Tamron Lens for DSLR cameras, Phottix equipment for photography use. The rm also stocks various DSLR cameras and lens, video cameras and studio equipment, like video camera cranes, dollies and tracks, microphones, Garmin GPS, Sheaer and Montblanc Pens.
Pelican Products, Inc. is the global leader in design and manufacture of both high-performance case solutions and advanced portable lighting systems.
III
FIBRE OPTIC
Soliton Telmec transforming Communication industry

echnology rm Soliton Telmec which specializes in building the basic infrastructure required to enable electronic communications is now eyeing the African market.
This is after building a solid reputation in the East African region for helping customers be and stay connected. Soliton Telmec Limited CEO Eng. Abdirahman O. Sheikh notes that the rms services are in high demand across the region. Says he: Great companies are selecting us over others thanks to our track record and our reliability. We are also working on solutions for cost eective deeper ber access and we believe that our clients will appreciate the results of our eorts. The CEO attributes the rms success to excellence in what they do. He says his people are committed to delivering quality services and the rm has the capacity to meet client needs having learnt from its experience that spans close to 15 years. Eng. Sheikh is happy to report that Soliton has built the largest networks for the most successful companies in the region. It has introduced ecient methods of building networks that have now become industry standard. While doing this, the technology rm has maintained local sta and has trained many East Africans in ber optic technology. It has created employment. Soliton not only builds networks but supports them too as well as those it did not build and keep the East African nations nervous system in optimal condition. This rm has designed and built the rst and the largest ber to the home solutions in Kenya. But the rms management and sta are not ready to rest on their laurels. As Eng. Sheikh says: Our sta is working hard to achieve
Eng. Abdirahman O. Sheikh Group CEO - Soliton Telmec Limited
more and many of them truly enjoy this work. Soliton undertakes work across the entire ecosystem: conceptual design, needs analysis to maintenance and service continuity. We work with our customers at the design stage to choose the most optimal solution using desktop tools, explains Eng. Sheikh. We carry out route and site surveys, develop the required data centers, build the routes, provide the transmission equipment and we maintain eld teams to ensure that our customers services remain up and running. Today, we are able to oer service level and assurance better than anyone else in the region. We have
been able to realize this through step-by-step improvements. That is why we created a 24 x 7 Networks Operations Center or NOC- to ensure that our customers enjoy the services with minimal interruption. With Fiber Optics one can send rich media at relatively lower cost. Fiber therefore oers a greater improvement over other older technologies. To the extent that communications systems have proven to enhance convenience and reduce cost of doing business, ber based technologies neatly t in as an enabler of this convenience Consequently, costs have gone drastically lower and quality has had tremendous improvement. Today the prices of connecting to the global Internet are roughly one-tenth of the price before the advent of ber. Quality has also increased tremendously. It is not uncommon to see people catching up with news complete with video feeds on their mobile phones or downloading a clip to help your child understand topics for his/her homework or even searching your medical condition so that you can have a meaningful discussion
with your doctor. Eng. Sheikh urges government to provide coherent policies instead of, on one hand encouraging and even investing directly in this business and on the other hand, private sector players are frustrated with exorbitant fees, unpredictable changes in pricing for permissions and poor or nonexistent coordination of projects. Too many agencies and multiple licenses and fees are involved to carry out a fairly simple project. Contrary to popular belief, vandalism is not the biggest challenge facing this industry today. The Soliton CEO says though they have in place measures to mitigate vandalism, vandals should know that ber cable contains no metal and is virtually useless for any other purpose. With its head oce in Kenya at Soliton Park North Airport Road, the technology rm builds Data Centers, Fiber Optic Lines, and the related routing and Transmission equipment. It deals with a wide variety of technologies. It also provides ongoing support backed by Service Level Agreement.
IV
FIBRE OPTIC
Liquid Telecom strives to have everyone in East Africa connected

iquid Telecom Kenya, previously KDN, is a full service voice and data communications carrier that connects people. Its mission is to build world-class infrastructure in Kenya and the company is investing millions of dollars to make this a reality.
Liquid Telecom Kenya is part of the Liquid Telecom Group, the leading independent data, voice and IP provider in eastern, central and southern Africa, . It supplies wholesale bre optic, satellite and international carrier services to mobile networks, ISPs and businesses of all sizes, along with communications solutions for individuals across the African continent. The Liquid Telecom Group started out by questioning the way the telecoms market has evolved in Africa, and was single-minded in its determination to improve what was previously available. Over the last decade, this approach has helped Liquid Telecom to change the face of communications in Africa, and millions of lives too. Liquid Telecom rmly believe that being connected shouldnt be just for the privileged few they believe its for everyone. The sense of doing the right thing runs through every aspect of the business. Liquid Telecom is constantly striving to deliver the best communications technology to everyone from the smallest communities to the biggest businesses in the region. The group has invested heavily in its own network and technology. It created the largest single bre network in the region, which stretches over 16,000km across borders to connect people locally, nationally and internationally. However, it is not stopping there. It is continuing to invest so that it can connect people from northern Uganda to Cape Town. Liquid Telecom Kenya has expanded its bre network between Nairobi and the Tanzanian border town of Namanga to ensure this connectivity is maintained terrestrially in the event of any future damage to the submarine cables serving East Africa. As a key part of the Liquid Telecom group of companies, Liquid Telecom Kenyas wholesale network provides connectivity onto the ve main sub-sea cable systems WACS, EASSy, SEACOM, SAT 3 and TEAMS connecting Africa to the rest of the world. The key benet of Liquid Telecoms investments and the integration to the groups bre networks is that trac within Africa borders is no longer routed via Europe. As a result, East African businesses can now access data and telecommunication solutions of an unparalleled quality and reach, supporting both local collaboration and global com-
petitiveness. The Group operates in Botswana, DRC, Kenya, Lesotho, Mauritius, Nigeria, Rwanda,
South Africa, Uganda, Zambia, Zimbabwe and the UK under a number of dierent wholesale, enterprise and retail brands.
Its been a slow road but nally Kenya is on the way to having a 21st century infrastructure which is as good
as and indeed better than those found both across Africa and the rest of the world.
In the group picture L-R is Nic Rudnick, (CEO Liquid Telecom Group), the PS Min of ICT Joseph Tiampaty, Naushad Merali, (Chairman Sameer Group) and Shahab Meshki, (CEO Liquid Telecom Kenya) during the launch of LIQUID TELECOM KENYA after acquiring Kenya Data Networks
VI
FIBRE OPTIC
Kenya Power improves supply with bre optic links
enya Power, through its countrywide power transmission network, is now killing three, not two, birds with one stone. It is delivering electricity and broadband bre connectivity alongside power, creating a new revenue stream.
Engineer Samuel Ndirangu, Chief Manager, Information Technology & Telecommunications, explains that the additional income accruing to the national power distributor is a bonus. The goal of installing the bre optic infrastructure alongside the electricity network was to help the rm improve its internal communications so as to eectively monitor the grid and enhance service delivery to its customers, both corporate and individual. This has turned out to be a boon as Kenya Power now sells the excess broadband capacity to other service providers. Communication, he says, is essential to power distribution. It is a vital component of a power network. By installing bre optic, we wanted to reduce the cost of communication using our own infrastructure, explains Mr Ndirangu. Our bre optic system provides a robust communication backbone for better management of power, our primary mandate. This has improved connectivity to Kenya Power branches for better service delivery to customers. He points out that an intelligent communication system increases visibility of the power distribution network and will enable Kenya Power to identify and correct problems even before customers report. By making the national electricity grid more intelligent, we will be able to guarantee reliable, uninterrupted power supply, says Eng. Ndirangu. Utility rms worldwide are allowed to have own private communication networks. Over the years, telecommunications has been evolving and to keep pace, Kenya Power had to go bre. We previously used telephones to communicate. This was limiting in passing on data. We decided to put bre optic strands in our power transmission system to provide capacity for transmitting
Our bre optic system provides a robust communication backbone for better management of power, our primary mandate
voice and data, to improve our internal communication. In 2002, the Communications Communication of Kenya (CCK) agreed to the idea that Kenya Power could lease to other rms, and especially telecommunications entities, its excess broadband capacity. Kenya Power got the bre optic licence. The rms bre optic cable runs from Mombasa, through Nairobi to Malaba on the Kenya-Uganda border and up to the Tororo sub-station. It already covers 1,700km or half the 47 counties of Kenya. We want to ensure we are in every county to provide broadband bre connectivity, says Mr Thomas Ogutu, the Kenya Power Manager, Telecommunications Business Unit, where the bre optic connections fall. This year, we are taking bre to Embu, Kajiado, Kakamega, Bungoma and Isiolo. Within ve years, we will have covered all counties. We will then move to take bre to all homes by 2015. We are starting with the cities of Nairobi and Mombasa and have targeted 100,000 homes in each town. Eng Ndirangu points out that, by providing bre optic broadband connectivity, Kenya Power is not a rival to licensed telecommunications service providers. We are not their competitors; we are neutral players in the ber optic eld, said Eng Ndirangu. Our oering is cost-eective for them because it does not cost us much more to put bre alongside our power infrastructure. Even the cost of maintaining the system is lower since our sta who service the power network will be in charge. This goes to assure them of job security. We are creating more business for improved nancial performance of our company. The same van, driver and technician used in servicing the power lines will help maintain the ber optic system. It wont cost us much more. He adds that the market for its excess broadband bre connectivity is immense and almost limitless as rms in many sectors will need to use bandwidth for various purposes. He says media companies, the national government and the counties oer a huge market. There is opportunity for Kenya Power to take telecommunications in the country to another level.
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Friday October 11, 2013 - Sunday October 13, 2013

Cental bank eels unde the weight of Sh7bn legal claims

CDF allocations to favour remote zones

Schools laptops supplier to be named next week

Top owners of KenolKobil transfer their shares

Time Warner in cartoon row with local sweets rm

Cash ow cisis hindes SME gowth

BUSINESS DAILY | Friday October 11, 2013

NUM BERS SAY

Kebs NTSA NIC Bank KNH NEMA Tullow CBK

3 8 10 16 20 20 21 Uhurus party dislodges ODM as the richest

Fresh matatu regulations:

Threshold for ownership (vehicles)

Franchises and management services

Cashless payment of fare

KDN ups stake with new voice unit

10. Two Kenyan startups head to Silicon Valley for Intel

Safaricom hits back at doctor over copyright legal dispute

What made news this week

Stock market investors get top earnings

CEOs of telcos face arrest over Sim card crimes

How taxpayers lost billions to public ofcials, politicians

Two drivers to take turns of 4 hours each.

More than half of directors face exit in parastatal reforms

Audit shock at Sh304 billion that cannot be explained

Earnings from passenger trafc grew by this last year 250

Malkiat Singh to earn 12pc royalties in Longhorn buyout

Number of matatus on Kenyan roads

Friday October 11, 2013 | BUSINESS DAILY

Electonic cleaance to boost competitiveness

up cargo handling and improve revenues

BUSINESS DAILY | Friday October 11, 2013

Cental bank sets aside Sh7 billion fo legal claims

CBKs legal exposure (Sh Mn)

Fine and penalty

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Cash ow cisis hindes gowth of SMEs in Kenya

Friday October 11, 2013 | BUSINESS DAILY

BUSINESS DAILY | Friday October 11, 2013

ECONOMY & POLITICS

CDF allocations favou emote zones

while Lamu East receives least amount of Sh62m

Top Ten Highest and Lowest CDF Funded Constituencies

Tanspotes aise concens ove insecuity

Nakuru 63.1 Town West Langata Nyeri Town 63.1 63.1

Kenyan wokes dont mind putting in exta hous, suvey says

Friday October 11, 2013 | BUSINESS DAILY

ECONOMY & POLITICS

New tax tems fo local bee ms unfiendly, says MP

State is set to name school laptop supplie

will now be announced next week