Professional Documents
Culture Documents
THE
Kenyas Bold Newspaper
SPECIAL REPORT, P13
Tuesday, May 6, 2014
No. 29582
www.standardmedia.co.ke
KSh60/00 TSh1,500/00 USh2,700/00
Police block publics access to Ministry of Lands ofces, P.8
Supreme Court reinstates Mary Wambui in Othaya, P.21
Its sweet news for
teachers, candidates
Government strikes deal on promotion and recruitment of teachers to ward
off confrontation with Knut, seeks to ease burden on parents by giving more
cash to free primary education and scraps exam fees for 2015
Ruto conrms
Mombasa
terrorists were
out on bond
By MACHUA KOINANGE and CYRUS OMBATI
Deputy President William Ruto has crit-
icised the courts for giving terror suspects
bail even as police face the new challenge
posed by easily available bomb-making
material.
The Standard exclusively revealed yes-
terday that the late Jamal Mohamed Awadh
and Suleiman Mohammed Sayyed, two of
the suspected terrorists behind the attack
on a bus in Mombasa last Saturday, had
previously been arrested by police in a raid
on the Musa Mosque in February. Ruto said
CONTINUED ON PAGE 2
By RAWLINGS OTIENO
It is good news for teachers, candidates and
parents after the Government announced waiv-
ers and allocations to be included in the upcom-
ing budgets to improve and lower the cost of ed-
ucation. Beginning next year, candidates sitting
national examinations at the end of primary
and secondary education will no longer pay ex-
am fees. Teachers are also big winners as Sh2.3
billion has been set aside to promote 7,500
CONTINUED ON PAGE 6
THE GOODIES
A total of Sh4.4 billion set aside to
promote 7,500 teachers and hire
another 5,000
No more examination fees for KCPE
and KCSE candidates starting next
year
Government to foot electricity and
water bills and costs for paying
subordinate staff
Annual Government subsidy for
each child in public primary schools
increased from Sh1,020 to Sh1,530
Girls over 10 years old to receive
sanitary towels
More than 30,000 young graduates
to be employed after completing the
Kenya Future Leaders Programme
Insecurity
Deputy President William Ruto
Education Cabinet Secretary Peter Kaimenyi (right) with Kenya National Union of Teachers Chairman
Mudzo Nzili at Jogoo House, Nairobi, yesterday after he announced that the Government will promote 7,500
teachers and hire another 5,000 in July. [PHOTO: WILLIS AWANDU/STANDARD]
Tuesday, May 6, 2014 / The Standard Page 2 / NATIONAL NEWS
the two were out on bond and their
families conrmed they both died on
Saturday in the attack in Mombasa.
The terrorists are using cheap mo-
tor vehicle ball bearings sold by car
spare parts shops as well as nails from
hardware stores to make their Impro-
vised Explosive Devices (IEDs) more
deadly.
Bomb experts told The Standard
they had established a pattern in their
use in the attacks on two public ser-
vice vehicles on Thika Superhighway
in Nairobi and the Mombasa attack as
well as a recent explosion at an eatery
in Eastleigh, Nairobi.
Yesterday, Ruto asked magistrates
and judges to be strong partners in
the war on terror, saying some sus-
pects linked to recent blasts had been
freed on bond.
We call on the Judiciary to be a
strong partner in the war against ter-
ror. We call on all players in the jus-
tice, law and order sector to stand
with Kenyans, Ruto said.
Security is our collective respon-
sibility, said the DP, adding: What we
are witnessing now is a terror group
on the run. This is a group that is des-
perate. It is our responsibility to take
the war to them.
SUSPECTS RE-ARRESTED
A judge recently blamed the liber-
al Constitution of Kenya 2010 and
laws that allow terror and capital of-
fence suspects to be granted bail by
the courts.
The Prevention of Terrorism Act,
however, provides that terror suspects
can be detained beyond 24 hours with
the authority of the courts, if police
prove it is necessary.
Yesterday, Ruto said records indi-
cate that many terror suspects that
jumped bail were linked to recent
bloody campaigns of terror.
He also named Fuad Abubakar
Maswab, who is believed to have ed
to Somalia while out on a Sh10 million
bond and his co-accused Jermaine
John Grant who had been re-arrested
while in possession of explosives.
Those who have ed to Somalia
intend to continue their terror activi-
ties. While they are abroad, the cases
against them cannot proceed, seri-
ously impairing the quest for justice
and law enforcement, Ruto said.
At least 22 terror suspects are re-
ported to be out on bond.
The DP spoke during a press brief-
ing after meeting security chiefs in his
Nairobi ofce in the wake of terror at-
Kenya battles
Shabaab militia WAR ON TERROR
tacks in Nairobi and Mombasa.
Meanwhile, The Standard learnt
that IEDs placed in soft target areas,
specically public places, that have
now become the weapon of choice for
terrorists, have one hardware compo-
nent for deadly impact: motor vehicle
ball bearings. The parts retail at only
Sh200 in used motor vehicle part out-
lets that easily place them in the
hands of terrorists.
HUMAN VICTIMS
Yesterday, Mombasa police said
the IEDs detonated at a busy Mwem-
be Tayari bus station in Mombasa on
Saturday were rigged with thousands
of ball bearings to inict maximum
damage on its human victims in an
explosion.
They also appear to point towards
one bomb maker or training manual.
The simultaneous blasts in buses on
the Thika Superhighway, Nairobi on
Sunday is a tactic favoured by Al-Qae-
das Somalia afliate Al-Shabaab.
Besides the ball bearings, nails and
nuts, investigators also found traces
of acetone, petrol and unidentied
chemicals and liquids from the scene
of the bus stage blast.
A bearing is a machine element
that constrains relative motion and
reduces friction between moving
parts to only the desired motion.
The ball bearing weaponises an
IED to another level, an impeccable
security ofcial told The Standard.
It is now the biggest headache be-
cause terrorists can buy the ball bear-
ings for Sh200 in Gikomba or other
second hand market places and add-
ed to the bomb material make an
IED.
When the IED explodes, the small
pellets y in different directions in-
icting hot burns and severing
limbs.
Think of it like over 100 hot bul-
lets discharged at the same time y-
ing in different directions, the secu-
rity source says.
In the Sunday attack in Nairobi,
three of the victims had their legs sev-
ered. Many other victims were
maimed. Used car parts sellers and
dealers in second hand car parts
should be suspicious of buyers who
are buying large quantities of ball
bearings, he warned.
In addition, he advised matatu se-
curity personnel scanning boarding
passengers that if their detector picks
up anything inside a bag, they should
insist on opening it to inspect the
contents.
If they open and nd a contrap-
tion with ball bearings and a cell-
phone attached to it, they should
know they have an IED, said the
source.
He said that in the case of the Sun-
day attack in Nairobi, he believed the
suspects boarded the two matatus
near the Khalsa/OTC terminus, and
alighted before the Roasters Inn bus
stop. The two IEDs were remotely ac-
tivated using a cell phone, he says.
The suspects planted the IEDs
and alighted. Sadly nobody saw the
IEDS on time.
BLACKMAIL STATE
Yesterday, DP Ruto urged the pub-
lic to be vigilant and help security
agencies with information.
It is not an opportunity for nger
pointing. All of us have a responsibil-
ity for ensuring our safety at large. We
are on top of the situation and all you
are seeing are kicks of a dying horse,
said Ruto.
Five drivers and conductors of the
two buses attacked in Nairobi on Sun-
day were arrested and will take a plea
today for failing to stop the attack.
They were detained at Kasarani
police station where they were ques-
tioned for failing to screen passengers
and luggage.
Ruto spoke a day after two blasts
that killed three people and left 86
others injured on Sunday evening on
two buses along Thika Road in Nairo-
bi.
The Government will not allow
terrorists to dictate or blackmail us in-
to changing our local or foreign poli-
cy. We will not withdraw until Somalia
has a stable and secure government
free from terror, Ruto said.
Present was Inspector General of
Police David Kimaiyo, Director Gen-
eral of National Intelligence Service
Michael Gichangi, head of civil ser-
vice Joseph Kinyua, Interior Cabinet
Secretary Joseph ole Lenku and
healths James Macharia.
MORE ABOUT THE
TWO ATTACKS
Explosive devices in Mom-
basa and Nairobi were similar,
pointing to one bomb maker or
training manual
Bomb maker may be using
attacks as testing grounds to
adapt for bigger attacks
Simultaneous blasts on Thika
Superhighway are a tactic fa-
voured by Al-Qaedas Somalia
affliate Al-Shabaab
Materials for making IEDs,
including fertiliser, potassium
chlorate, ball bearings and
nails are readily available and
cheap
Investigators found traces of
acetone, petrol and unidenti-
fed chemicals from the scene
of the bus stage blast
Records indicate that many
terror suspects that jumped
bail were linked to recent
bloody campaigns of terror
State asks courts, citizens to
Deputy President William Ruto addresses the Press outside his Harambee House
ofce, yesterday. With him from left are: Inspector General of Police David Kimai-
yo, Cabinet Secretaries Joseph ole Lenku (Interior) and James Macharia (Health),
National Intelligence Service Director General Michael Gichangi and other of-
cials. [PHOTO: GOVEDI ASUTSA/STANDARD]
By JAMES MWANGI
and PKEMOI NGENOH
Even after two days of consecutive twin blasts
claimed lives and injured scores in Mombasa
and Nairobi counties, some matatu operators in
Nairobi remain casual on safety of commuters.
Barely a day after two explosives ripped off
two PSV buses along the Thika Superhighway on
Sunday, business went as usual with little worry
about security issues.
Yesterday The Standard conducted a spot
check across some of the major matatu termini
within and outside the city centre and witnessed
lax security measures. Mwiki Sacco and Githurai
45 Sacco buses were attacked with Improvised
Explosive Devices on Sunday evening but since
yesterday no efforts had been made to screen
passengers boarding the Githurai 45 buses along
Ronald Ngala, Nairobi.
SUSPICIOUS LUGGAGE
Business at the busy, congested stage went
on oblivious of dangers posed by such igno-
rance. Commuters boarded unchecked with
their luggage.
Around the city, very few matatu Saccos car-
ried out security checks. At the Bus Station, few
bus operators conducted checks but most 14-
seater matatus did not bother.
Similarly, commuters appeared unconcerned
of the people boarding with bags and other sus-
picious items.
At the busy Railways terminus The Standard
could not spot any vehicle screening passengers
before boarding, so was the case with many 14-
seater operators along Race Course and other
streets. However, the Mwiki matatus along Race
Course had were screening passengers and their
luggage.
The Umoinner Sacco staff told The Standard
the attacks have forced them to conduct the se-
curity checks throughout.
Ours is not when an explosive attack or car-
jacking is reported. Screening has become our
daily routine and we hope others will embrace
this measure, he said.
The twin blasts on the Thika Superhighway
left at least two dead and dozens injured, at least
three had their legs severed.
Women and children were among the casu-
alties in the latest campaign of terror. It came as
police revealed that two men suspected to be be-
hind a terror attack on a bus in Mombasa on Sat-
urday had been arrested and released by the
courts.
PSV operators still lax about security measures despite brazen attacks
Continued from P1
Tuesday, May 6, 2014 / The Standard NATIONAL NEWS / Page 3
Kenya battles
Shabaab militia WAR ON TERROR
BY STANDARD REPORTER
A police informer and suspected
counter-terrorism agent has been
shot dead at his house in Shella, Kili
County.
Alyaan Mohamed, who was a li-
censed gun owner with alleged ties to
police, was shot in the head when a
man stormed his house on Sunday
evening and opened re on him then
ed without taking anything.
Acting Malindi OCPD Charles Rot-
ich yesterday said the victim was as-
sassinated.
Mr Rotich said the attack on Mo-
hamed occurred at around 8.30pm.
We are told the man did not utter
any word but he brandished a pistol
and shot him once in the head, the
OCPD said adding that the bullet went
through the skull and exited injuring
the victims brother-in-law, who was
with him, on his left leg.
SURVIVING RELATIVE
The OCPD said the shooter es-
caped on foot. We believe it is an as-
sassination as by the time of shooting
the police informer was armed with
his licensed pistol and the suspect did
not steal his gun, mobile phone or
money, he said.
Mohamed and his unnamed
brother-in-law were rushed to the
Tawq hospital in Malindi town where
the police informer was soon pro-
nounced dead. The surviving relative
was treated and discharged.
Sundays killing came barely four
months after the killing of two other
police informers with links to Kenya
and US counter-terrorism agencies.
In October last year, Faiz Mo-
hamed Bwarusi was beheaded by
people believed to be members of the
Al-Shabaab and his headless body
discovered dumped at Mambrui
beach near Malindi.
Early this year, veteran police re-
servist Ahmed Abdalla Bakhshwein
was shot dead by suspected Al-Sha-
baab militants.
Police spy
assassinated,
brother hurt
By NGARI GICHUKI
and MAUREEN ABWAO
Victims of the Sunday twin blasts
on Thika Road recounted the horric
events but some were in too much
pain to speak.
Sharon Achieng, a Standard Six
pupil at Murima Primary School, who
was aboard the Mwiki bound bus to-
gether with two of her siblings, a cous-
in and her father, had just arrived in
the city from Siaya ready to resume
school on Monday when the terrorist
struck.
We had boarded a bus from town
headed to Mwiki and on reaching Thi-
ka Road Mall we saw some smoke in
the vehicle and then heard a loud
bang. We managed to jump through
the window as the bus came to a halt,
but I ended up breaking one of my
legs, said Achieng yesterday.
JUMPED OUT
We were rushed to Neema Clinic
in Karasani before being brought here
(Kenyatta National Hospital), she
added. Despite the pain, she puts on
a brave face as she narrates the or-
deal.
With difculty, she stretches to
point to her other two siblings and
cousin who are fast asleep on the beds
next to her.
Their uncle Samuel Ochieng, who
also had his child in involved in the
blast, said the children although in
stable condition, had broken their
limbs while jumping out of the bus in
a bid to save themselves, with the
youngest among them being only
ve.
Sharons father Francis Otieno was
discharged from Aga Khan Hospital
but declined to address the Press as
help fght terrorism
he rushed to his wifes aid who broke
into tears on seeing her children.
Dorothy Kalekye who was on the
Githurai bound bus together with her
friend sustained severe burns on the
legs.
I was with my friend heading
home from town when I heard a loud
blast. The explosion was too loud that
it has affected my ears as I cannot
hear properly, said Kalekye, who was
visibly in pain.
We had just boarded the bus as
usual and we did not know that explo-
sives had been planted inside the bus
and neither did we see any suspicious
character in the bus, she added.
With tragedy being still too fresh in
the minds some of the victims chose
not to speak, as they looked still trau-
matised. One of the doctors at the fa-
cility said all patients are in a stable
condition although for needed time to
recover from the trauma.
Earlier, President Uhuru Kenyatta
had said security forces had already
thwarted a number of attempted at-
tacks.
Praising the security teams, Uhuru
assured them of further support that
they need to keep us safe, adding:
My governments pursuit of extrem-
ists and their agents will continue; un-
der law, it will be intensied. Those
who chose to murder innocents will
be defeated, he said.
A victim of the Thika Road twin bus blasts at Kenyatta National Hospital, yesterday. [PHOTO: WILLIS AWANDU/STANDARD]
Traumatised victims narrate ordeal that left
several with broken limbs, severe burns
I was with my friend
heading home from town
when I heard a loud blast.
The explosion was so loud,
it has affected my hearing
Dorothy Kalekye, a victim
Tuesday, May 6, 2014 / The Standard Page 4 / NATIONAL NEWS
and ferried in a vehicle that had been
donated by the local county govern-
ment.
They were reportedly taken to
Central Police Station in Nyeri the
same night, but were not recorded in
the Daily Occurrence Book as the case
should have been. Incidentally, the
ve were found dead the following
day and there were no spent cartridg-
es on the scene, reads the statement,
which signed by IMLU Executive Di-
rector Peter Kiama.
According to autopsy reports, the
four male bodies had gunshot wounds
and there indications that they were
shot at close range, some at distance
of not more than 30 cm.
The reports further claim the fe-
male body showed that she died from
asphyxia (lack of oxygen) due to hang-
ing.
There were signicant physical
injuries to the hands and wrists in two
of the bodies which may suggest
physical assault of the deceased be-
fore they were shot dead.
CLOSE SURVEILLANCE
Security sources that cannot be
quoted as they are not authorised to
talk to the press, have intimated that
police were interested in the two
young men who had just returned
from Somalia.
They were under the radar of se-
curity agents. They had travelled to
Nairobi and we suspect they were
planning an operation in Nyeri when
they were eliminated.
Another source privy to investiga-
tions said the youths have for the last
few months been under close surveil-
lance over their involvement in terror-
ism. These are cases which have al-
ready been identied and proled
and their activities were being moni-
tored very closely.
In fact, no police ofcers or secu-
rity agent from Nyeri was involved,
and most came to know about the
Were ve Nyeri
youths executed
over terror links?
Villagers view the bodies of ve people that were found dumped in Tagwa
Forest. Mohammed Salim Karanja addresses journalists soon after his son
Yusuf Mwangi was killed. [PHOTOS: FILE/STANDARD]
By STANDARD TEAM
Five people whose bodies were
found dumped in a forest in Nyeri a
fortnight ago could have been killed
after they were suspected of involve-
ment in terrorism.
Sources have revealed that two of
them had secretly travelled to Somalia
where they received military training
before sneaking back into the country.
Three days before they were executed,
the two were said to have travelled to
Nairobi on an undisclosed mission.
A relative to one of the deceased
revealed that they were informed, by
a person whom he declined to name,
that the youth were killed over suspi-
cion of being members of the terror
group.
The fresh details contradict initial
reports that the ve, Yusuf Mwangi
Mohammed, also known as Pique, 18,
Mohammed Kaburu, 19, Kelvin Ki-
huri, 25, Simon Kingori, and Martha
Wairimu Gitonga, 25 were common
criminals who had been terrorising
Nyeri residents.
When their bodies were discovered
in Tagwa Forest on April 16, shocked
relatives told journalists that they
were picked by police as they left a
popular bar in Ruringu where they
had been watching a football match.
Relatives of the deceased have
since clammed up and are unwilling
to talk just as the witnesses who ini-
tially testied that they saw the vic-
tims being loaded into a police vehicle
outside the pub.
We have established that some of
the potential witnesses have gone
underground and have not recorded
any statements with the police to as-
sist in establishing what actually hap-
pened on the night of April 16, 2014 at
around 10.00pm.
In a press statement issued yester-
day, Independent Medico- Legal Unit
(IMLU) alleged that the deceased
were picked by four police ofcers
deaths just like any other member of
the public, said our source.
But IMLU in its statement linked
four police ofcers, all of them sta-
tioned in Nyeri, to the deaths.
The source explained that the gang
had crucial information about recruit-
ment of youths into Al Shabaab
months.
Late last year, police in Nyeri ar-
rested a youth in Ruringu on suspi-
cion of being an Al Shabaab member.
The suspect, who was handed over to
the anti-terror police after his arrest
was believed to have been away in
Somalia previously, alongside his
brother who was killed in the war-torn
country by Kenya Defence Forces.
He later escaped and came back
to Kenya, and a report was made at a
Nyeri police station after he allegedly
threatened an imam of local mosque.
The imam had allegedly objected to
his suggestion that they build a mod-
ern mosque, after he failed to disclose
the source of the funds to be spent in
building the mosque, said a senior
police ofcer.
Although the police have been
linked to the killings, Nyeri County
Police Commander Agnes Lihabi has
dismissed the accusations and urged
anybody with information to volun-
teer it to the police to facilitate inves-
tigations. Similarly, Nyeri Central
OCPD Adiel Nyange said no report of
arrest was made in any of the stations
or posts Occurrence Book.
IMLU believes there is a series of
extra-judicial killings where victims
have been abducted from their homes,
killed and their bodies dumped in
mortuaries far away from their
homes.
INNOCENT
We have recorded similar cases in
Kakamega in the last few months.
Indeed, since 17th April we have re-
ports that two other persons were
abducted by known police ofcers in
Karatina. The body of one of them was
found at Muranga District Hospital
Mortuary yesterday with injuries sug-
gesting that he had been tortured
before his death.
Ms Gladys Wangui, an elder sister
to Wairimu, says her sister was inno-
cent. They hailed from Kwa Huku in
Kieni Constituency and was married
to a Mr Gitonga, before they separat-
ed.
They have two children, who stay
with my mother in Kieni since my
sister came to Nyeri to look for a job.
She had just worked at the bar for
about one month. She previously
worked at a popular eatery in Nyeri.
town, said Wangui.
By STANLEY MWAHANGA
and WILLIS OKETCH
Mombasa police believe that more
than one home-made bomb was
detonated at a busy bus stage in
Mombasa in the Saturday evening
blast. Police ofcers also revealed
yesterday that the Improvised Explo-
sive Devices were rigged with thou-
sands of ball-bearings to inict maxi-
mum damage.
Besides ball-bearings, nails and
nuts, investigators also found traces
of acetone, petrol and unidentied
chemicals and liquids from the scene
of the blast.
From the trajectory of the marks
(of the ball-bearings) it is not possible
that one device was exploded, said
CID ofcer Henry Ondiek.
Last evening, a local ofcial admit-
ted that Suleiman Mohamed Said,
who died in the blast alongside Jamal
Mohamed Awadh, had criminal re-
cords but their families denied that
they were terrorists with links to the
controversial Musa Mosque as alleged
by police on Sunday. Police suspect
that the two were planting or detonat-
ing the devices.
A local chief described Jamal as a
petty offender but stated he had no
information of his alleged links to ter-
rorism.
JIHADIST CONVENTION
On Sunday, Ondiek, a senior CID
ofcer in Mombasa, said Suleiman
and Jamal were arrested when police
stormed the mosque to end an out-
lawed jihadist convention on Febru-
ary 2 this year and later released.
Suleimans family defended him
against allegations that he was in-
volved in terrorism activities.
I lost my son and now they are
linking him to terrorism acts and
claim that he was arrested at Masjid
Musa. My son has never even set foot
in the mosque. He doesnt even go to
the mosque, he was just a mere tout
trying to fend for his family, Leila
Hatif, Suleimans mother said in
Mombasa yesterday.
Still yesterday, a woman who
claimed to be Awadhs sister defended
him against the terrorism allegations.
A list provided by police on February
3 shows that a Mohamed Awadh was
among those captured in the raid.
Separately, detectives involved in
the probe told The Standard that the
two male victims appeared to have
taken the full impact of the blast,
leading to fewer deaths.
The detectives say the suspects
bodies were ripped apart by the blast,
but Suleimans family claims that his
body was largely intact but had a huge
hole in the head and huge cuts in the
abdomen.
Police: More than one bomb exploded in Mombasa on Saturday
Kenya battles
Shabaab militia WAR ON TERROR
A General Service Unit ofcer disperses a crowd at Mwembe Tayari on
Saturday after experts blew up an abandoned suitcase wrongly suspected to
be bearing a bomb. [PHOTO: GIDEON MAUNDU/STANDARD]
Page 5 Tuesday, May 6, 2014 / The Standard
Tuesday, May 6, 2014 / The Standard Page 6 / NATIONAL NEWS
next three years, no pupil or student
will pay any money to get education
in public learning institutions.
We are moving towards offering
free basic education from early child-
hood education to the secondary
level. We have increased the capita-
tion for each pupil that includes the
examination fee, said Kaimenyi.
Kaimenyi said the Government
would also foot the electricity and
water bills and meet the cost of pay-
ing the subordinate staff.
This is designed to eliminate levies
charged by schools that burden par-
ents. All these will be implemented
progressively for the next three nan-
cial years of the Jubilee Government.
Currently, the capitation for each
pupil is Sh1,020 but come next year,
the amount will be increased by be-
tween 44 to 50 per cent which trans-
lates to between Sh448 to Sh510 per
pupil. This means that the capitation
for each child will be between Sh1,468
and Sh1,530 per child.
Since the inception of the Free
Primary Education in January 2003,
enrolment has increased from 5.9 mil-
lion to 8.7 million pupils currently in
public schools.
Last month, Wajir South MP Ab-
dullahi Diriye moved a motion in
Parliament to compel the Govern-
ment to increase the capitation per
child from Sh1,020 to 3,060 citing the
ever-rising ination levels.
The CS maintained that it is the
State in new
bid to upgrade
school system
Education Cabinet Secretary Jacob Kaimenyi (centre) with Knut secretary
general Wilson Sossion (right) and chairman Mudzo Nzili address the press.
Kaimenyi said Sh2.3 billion has been set aside to promote 7,500 teachers.
PHOTO: WILLIS AWANDU/STANDARD}
teachers and an additional 5,000 tu-
tors are to be recruited from July.
And parents who have borne the
brunt of rising school fees will also
receive a reprieve, as the Government
will foot some service charges in
schools blamed for raising levies and
also increase the subsidy for stu-
dents.
These are among the goodies Edu-
cation Cabinet Secretary Jacob
Kaimenyi announced yesterday dur-
ing a press conference at the Kenya
National Union of Teachers (Knut)
headquarters where he met the union
ofcials.
Kaimenyi explained the measures
are to implement the Basic Education
Act, but it was also evident the inter-
ventions were aimed at averting a
looming confrontation with teachers.
The Government promised to increase
the capitation for the Free Primary
and the subsidised secondary educa-
tion in all public schools.
Authorities moved to forestall an
industrial action that had been called
by Knut by accepting to recruit 5,000
teachers in the next nancial year
beginning July.
Apart from bridging teachers
decit, the Government has set aside
Sh2.3 billion to promote 7,500 teach-
ers, a move calculated to avert an-
other looming confrontation with
teachers. Kaimenyi said that in the
role of the Government to make sure
that the teacher-pupil ratio meets the
international standard.
Girls over 10 years old will be sup-
plied with sanitary towels after the
Government increased the budget for
the items from Sh200million in the
last nancial year to Sh 400million.
According to Kaimenyi, in the next
three years, students in all public Sec-
ondary schools will have lunch at
school at the taxpayers expense. We
will make sure that all students in
secondary schools get lunch at the
school. We want to fully implement
the Basic education Act as it is, said
Kaimenyi.
For promotion of teachers, the
Government needed Sh3 billion but
has only allocated Sh2.3 billion, fall-
ing short by Sh700 million, which
Kaimenyi says they will look for ways
to x. Talks and consultations are still
underway. We will look for a way of
xing the decit, added Kaimenyi.
The second phase of the teachers
commuter allowance has also been
factored in the budget at a cost of
Sh3.8 billion, which the teacher will
start enjoying at the end of July this
year.
GRADUATES JOBS
Knut Secretary General Wilson
Sossion said the union had requested
the Ministry of Education Sh18 billion
for recruiting 40,000 teachers and
another Sh5.9 billion for implement-
ing the CBA signed last year to pay for
commuter allowance. We have had
consultations with the CS and dia-
logued. We have been given part of
what we requested and it seems the
Government is committed to full its
pledges, said Sossion.
However, the Government seems
to be silent on the issue of Early Child-
hood Development Teachers after
Knut had requested 28,000 teachers
that could have cost Sh4.8 billion. The
Government is also moving to de-
ethnicise and erase stereotypes by
coming up with the Kenya Future
Leaders Programme that seeks to
make young graduates patriotic citi-
zens.
According to Kaimenyi, the pro-
gramme will employ more than 30,000
graduates once they nish their stud-
ies and they will be deployed across
the 47 Counties and not in their
original home counties. We are ne-
tuning the programme that will create
employment for young graduates. We
must promote national cohesion and
strengthen primary education out-
comes, said Kaimenyi.
The graduates will be rst trained
on lobbying skills, communication
and leadership skills using a curricu-
lum being developed by the Kenya
Institute of Curriculum Development
before they are deployed.
Already, the Government through
the Education ministry has set aside
Sh355 million to kick off the drive, a
move that will make young graduates
get internship in various organisa-
tions and companies once they
graduate.
KAIMENYI OPENS BASKET
OF GOODIES...
Cabinet Secretary Jacob Kaime-
nyi announced that beginning
next year, candidates sitting na-
tional examinations at primary
and secondary level will no lon-
ger pay exam fees
Sh2.3 billion has been set aside
to promote 7,500 teachers and
an additional 5,000 tutors are
to be recruited from July
The State promised to increase
the Free Primary and the sub-
sidised secondary education
funding in all public schools
Schools reopen
amid difculties
BACK TO SCHOOL
Continued from P1
KENYA SCHOOL OF MONETARY STUDIES
Box 65041 00618, Nairobi, Kenya,
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(iii) Microhnance
NATIONAL NEWS / Page 7 Tuesday, May 6, 2014 / The Standard
Uproar over
Government
plan to raise
varsity fees
By KENNEDY OKWACH
Parents are disgruntled
with the Governments failure
to streamline the high tuition
fees being charged by schools
as students begin to report
back to school today.
They say they expected the
task force established by Edu-
cation Cabinet Secretary Jacob
Kaimenyi to review school fees
to come up with recommenda-
tions before the start of this
term.
Most schools are now de-
manding that parents pay the
full fees for second term or at
least 75 per cent of the charges
before children are admitted
back. A parent of a student at
Chavakali High School said the
institution, which charges
Sh25,000 in second term, has
asked guardians to pay at least
Sh15,000 before students can
be admitted. He said this has
burdened parents who cannot
raise the required money, forc-
ing them to either delay send-
ing their children to school or
transfer them to other
schools.
Some parents cannot raise
the whole school fees or the
required percentage, he said.
By ALPHONCE SHIUNDU
and RAWLINGS OTIENO
The chairman of the power-
ful Public Accounts Committee
(PAC) of the National Assembly
now wants the Jubilee admin-
istration to stop the planned
fee increase for university stu-
dents.
Mr Ababu Namwamba
(Budalangi) said the new
amount will make university
education the privilege of stu-
dents from rich families.
The PAC chairman said it
was wrong for the Cabinet Sec-
retary of Education, Prof Jacob
Kaimenyi, to wake up one
morning and decide that the
fees have to be increased, be-
cause the last time the fees was
revised was a long time ago.
Kaimenyi, a week ago, was
quoted saying he was planning
to form a team to review the
fees for university students.
Fees is a major problem. It
is a big burden to parents,
guardians and students.
If you say you want to in-
crease, so many of the bright
students in our public univer-
sity will not be able to get uni-
versity education, Namwamba
told The Standard yesterday.
The PAC chairman queried
the Jubilee administrations
pledge to improve access to
education, given that there was
a team already reviewing the
fee structure for secondary
schools, with indications
showing that an increase in the
fees is inevitable, given the rise
in the cost of living over the
years.
SPENDING HABITS
We run the risk of leaving
higher education to the rich,
said Namwamba, a key player
in the opposition coalition,
CORD.
The MP, whose team has
been auditing the countrys
budget, and who is privy to
rst-hand reports of the Audi-
tor General about the spending
habits of all ministries, said
there was sufcient money in
Government to allow the State
to fund higher education.
If this Government is seri-
ous about access to education,
they have two options: They
either set aside sufcient funds
to make university education
free, or they should make it
purely loan-based as it is in the
United States, he said.
Namwamba queried why
the Government was keen on
Parents unhappy with high cost of secondary education
paying Sh1.4 billion to Anglo-
Leasing rms, instead of
pumping the money to higher
education.
Already, there is an MP,
Irungu Kangata (Kiharu), who
is preparing a Bill to increase
the capacity of the Higher Edu-
cation Loans Board (Helb), to
have all university students get
loans to study.
Yesterday, university stu-
dent leaders asked Kaimenyi to
form a task force to seek opin-
ion before the planned review
of school fees that has elicited
an uproar among learners.
The leaders warned Kaime-
nyi that if the task force is not
formed in the next 14 days,
they will be left with no option
other than to stage peaceful
demonstrations across the
country to force his resigna-
tion.
Led by Kenya Universities
Students Organisation (Kuso)
President Babu Owino, the
leaders said they were irked by
lack of consultation as the
main stakeholders, should
Kaimenyi make his threat
real.
Prof Kaimenyi has not
only declared war on univer-
sity students but has shown
that the Government has no
vision to uplift the majority
poor who toil everyday.
He must institute a task
force within 14 days, failure to
which we will evict him from
ofce, said Owino.
The leaders, drawn from
the 31 universities and con-
stituent colleges, demanded
that the fees be reviewed
downwards by at least 50 per
cent.
You cannot increase fees
yet loan offered by Helb is not
enough. Even if they increase
the Helb loan, its still students
who will pay, he said.
Currently, Helb issues a
minimum of Sh35,000 and a
maximum of Sh60,000 per stu-
dent per year.
Schools reopen
amid difculties BACK TO SCHOOL
Page 8 / NATIONAL NEWS Tuesday, May 6, 2014 / The Standard
EU commits to foster good relations and
increase economic support to Kenya
By SOPHIAH MUTHONI
and FAITH RONOH
The European Union (EU)
has praised the existing cordial
relations with Kenya.
At the same time, the union
has committed to deepen the
ties between the two interna-
tional actors.
EU Ambassador Lodewijk
Briet said the decades-long ties
in trade, security, development,
and health that the two actors
have been enjoying will contin-
ue to be strengthened.
Mr Briet made the remarks
yesterday during the launch of
the European Union (EU) Eu-
rope Week at the National Mu-
seum. The celebrations are to
mark EUs continued partner-
ship with Kenya.
Under the theme Partner-
ship through development,
the event comes with a photo
exhibition to showcase some of
the projects the EU has been
undertaking in the country.
The exhibition will be run-
ning all week and there will be
a series of activities around
Nairobi to engage Kenyans of
all backgrounds, said Briet.
Some of the activities sched-
uled for the week include the
launch of a project to tackle vi-
olence against children, a mu-
sical fusion extravaganza at Ke-
nyatta University, a free entry
public expo and a trade and in-
vestment forum at KICC.
The events will all culmi-
Ngilu order to reform ministry affects services
BY CYRUS OMBATI
Services at the Ministry of Lands
have been grounded following an or-
der by Cabinet Secretary Charity Ngi-
lu to suspend all transactions for 10
days starting yesterday.
Mrs Ngilu said the move was to fa-
cilitate reforms at the central registry.
She launched the exercise and invited
the media to witness it.
She, at the same time, appointed
Jane Ndiba as the senior deputy chief
lands registrar to oversee operations.
Armed police ofcers were placed
on fourth, sixth and ninth oors that
house the National Lands Commis-
sion ofces. Apparently, the suspen-
sion has affected NLC operations.
They are not allowing us to even
move a le from one ofce to another.
Even distribution of letters cannot be
done, said an insider at the ofces.
Staff members were required to pro-
duce their identication cards to be
allowed in.
But the commission criticised Ngi-
lus latest appointment, arguing that
the Public Service Commission (PSC)
is the one mandated to make the ap-
pointment. Another ofcial claimed
CS directs offces
including those of
independent NLC be
closed for 10 days
open and declared that if any of their
les go missing, the minister will be
held responsible.
The commission is independent
and they should only bar people from
going to the ministry ofces and not
ours. This is nasty and should not
happen at all, said Ms Mukolwe.
Ngilu, in an advert appearing in
the daily newspapers, announced the
department would be closed for 10
working days starting Monday, to re-
Lands Cabinet Secretary Charity Ngilu at the Registrar of Lands ofces in Nairobi yesterday. [PHOTO: BEVERLYNE MUSILI/
STANDARD]
nate in the launch of the annu-
al EU report on European De-
velopment contribution to
Kenya.
LIVING STANDARDS
Gracing the occasion, In-
formation, Communications
and Technology (ICT) Cabinet
Secretary Fred Matiangi said
Kenya values the assistance
from the EU especially on im-
proving the living standards of
the most vulnerable.
Dr Matiangi said the EU-
backed programmes in the
country have helped in reduc-
tion of poverty.
The EU-funded commu-
nity development programmes
in different sectors targeting
the poor have enabled the un-
derprivileged to gain access to
improved health care. They
have also reduced maternal
deaths, improved food security
and access to safe drinking wa-
ter, he said.
Dr Matiangi pointed out
that ICT, being one of the pil-
lars of Vision 2030, substantial
nancial, material and human
resources have been devoted
to entrenching ICTs in the de-
velopment of the country.
To this end, the Govern-
ment has laid out an elaborate
ICT infrastructure, he added.
Information, Communications and Technology Cabinet Secretary
Fred Matiangi and European Union Ambassador Lodewijk Briet
during the launch of the photo exhibition at the National Muse-
um in Nairobi, yesterday. [PHOTO: JENIFFER WACHIE/STANDARD]
PSC had not approved the appoint-
ment and was planning to re-adver-
tise the position.
STANDOFF
The suspension of services
prompted a standoff between the
NLC and police, who barred the com-
missions ofcers from accessing their
ofces.Whereas NLC ofcials had said
their operations would continue as
usual, police who had been under in-
structions barred them from access-
ing their ofces.
The ofcers also turned away the
public who had turned up to seek ser-
vices. Ngilu brought in more than 30
university students to assist her staff
carry out the audit in the two-week
period. But NLC termed Ngilus action
as illegal. The shutdown effectively
halts issuance of title deeds country-
wide. NLC Vice Chair Abigael Mukol-
we however insisted that ofces would
view central land registries, and that
services would resume on May 19.
The commission said it will open
its services as usual and urged the
public go there to be served in a sep-
arate advert.
Pursuant to the law, the commis-
sion is an independent constitutional
body and regulates its own proce-
dures. In this regard, the commission
would like to inform the general pub-
lic that the commission will be open
for business as usual, said Mukol-
we.
COMMUNICATION BREAKDOWN
She said Ngilus directive was ille-
gal and could cost the country mil-
lions of shillings in losses because she
did not consult the commission.
Some of the ofces she said will
be closed are under the commission,
yet she did not consult us as it should
be before making the announcement.
We are there to serve the public but
we do not understand why they are
blocking the public, said Mukolwe.
The central registry, the Nairobi
registry and the records registry will
all be closed for the exercise. Howev-
er, the records registry is under the
commission, ofcials said.
To realise these objectives, the
Lands Directorate has set up a pro-
gramme aimed at re-engineering our
business processes with a view to re-
ducing the turn-around time on ser-
vice delivery, the notice by Ngilu
read.
Page 9 Tuesday, May 6, 2014 / The Standard
Page 10 / NATIONAL NEWS Tuesday, May 6, 2014 / The Standard
Shock as gang
of 100 strikes,
injures scores
By PETERSON GITHAIGA
As the country continues to
reel under the upsurge of crime,
there was a trail of blood and tears
in Kitengela, Kajiado County, yes-
terday. A gang of about 100 men
armed with machetes, clubs and
other crude weapons left scores of
people injured during a retaliatory
attack.
The gang attacked members of
the public indiscriminately in an
orgy of violence that lasted hours.
Shocked residents narrated
how they witnessed the day light
attack, and how they feared for
their lives.
Mrs Monicah Mweni was going
about her business of selling fruits
when the gang struck. I saw more
than a hundred men armed to the
teeth and shouting war songs.
When they arrived near our house,
we run for safety and left them de-
stroying cars and houses, said
Mweni. Another local, John Mach-
The gangsters were
armed and sang war
songs as they carried
out retaliatory attack
aria said they suspected the gang was
on a revenge mission after members
of the gang were attacked on Sunday
night, prompting to death of two.
A contingent of Administration
Police ofcers and their regular coun-
terparts from a nearby Kitengela Po-
lice Station gave chase and arrested
two culprits who were hiding in an
iron sheet rental house within the
town. Police red for more than four
hours as they pursued the gang that
torched a vehicle.
TWO KILLED
Area OCPD Edward Wafula Masibo
told The Standard that his ofcers
were still pursuing the attackers and
will ensure they bring them to book.
This is an organised gang that is out
to breach peace in our county but we
will not give them a chance. I have or-
dered the security agents to ensure
that we nab them, said Wafula.
He added that at least two people
were killed on Sunday night while sev-
en people have been critically injured
and admitted to hospital following
the retaliatory attack.
I am sending a stern warning to
these criminal groups that they will
face the full wrath of law if they con-
tinue with these heinous activities,
said the police boss.
The two suspects we have in cus-
tody will help us with investigations
to bring other culprits to book.
Area Member of County Assembly
Daniel Kanchori called for urgent
need for police to ensure they dili-
gently work on tip offs from members
of the public to curb such bloody in-
cidences.
He said it was high time police of-
cers worked closely with members of
the public, who might be having cru-
cial security information, to enhance
security.
HOW EVENTS UNFOLDED
At least two people were
killed on Sunday night when
two warring groups engaged
in a fght
Yesterday, seven people were
critically injured and admitted
to hospital following a retalia-
tory attack between the two
groups
A gang of about 100 attacked
members of the public indis-
criminately in an orgy of vio-
lence that lasted hours Police
fred for more than four hours
as they pursued the gang that
also torched a vehicle
A vehicle that was burnt by an or-
ganised gang that attacked residents
of Kitengela, Kajiado County, yester-
day. INSET: Administration Police of-
cers arrest a man after the attack.
[PHOTOS: PETERSON GITHAIGA/STAN-
DARD]
By ISAIAH LUCHELI
A suit challenging a multi-million
shillings tender by the Kenya Medical
Supplies Authority (Kemsa) that had
paralysed the supply of surgical equip-
ment to public hospitals has been dis-
missed.
The Public Procurement Oversight
and Review Board dismissed the ap-
plication by Leadstar Company Lim-
ited, which wanted the procurement
of non-pharmaceutical surgical tubes,
blades and cannulas and safety boxes
nullied.
The board notes that this tender
involves the issue of supply of equip-
ment which are to be used in public
hospitals for the treatment of patients
and notwithstanding the fact that the
board has already found that all the
grounds for review set up by the ap-
plicant lack merit. It would be in pub-
lic interest if patients can access the
equipment without any further undue
delay, the board ruled.
Board chairman Paul Gicheru,
who read the verdict, added that the
company had failed to clinch the ten-
der after it failed to meet some of the
requirements which included the la-
beling of equipment. Failure to prop-
erly label the supplies would open a
oodgate for counterfeited goods,
said Gicheru.
Leadstar had sought for a review
on the grounds that Kemsa had vio-
lated the Public Procurement and
Disposal Act, the Public Procurement
and Disposal Regulations and the
Constitution by evaluating the com-
panys tender document contrary to
instructions to bidders and require-
ments of the tender document.
Kemsa gets green
light to supply
medical tools
Woman in sons murder suit jailed for ten years
By FRED MAKANA
A woman who killed her four-year-
old son and dumped his body in a well
after a domestic quarrel was jailed for
10 years by a Nairobi court.
High Court Judge Nicholas Ombija
convicted Jane Gathiga Maina for the
murder of her son at their home in
Kingeero, Wangige within Kiambu
County on October 3, 2010.
However, her husband Walter
Njuguna Maina was set free for lack of
evidence after Justice Ombija found
that he had no common intention to
kill the boy. A scufe arose between
him and Jane over Sh3,000 on the fate-
ful day.
FOUND GUILTY
The court heard that on the fateful
day the childs body was found with
strangle marks.
A postmortem examination report
presented before the court by Govern-
ment pathologist Johansen Oduor
during the trial showed that the boy
died of strangulation.
Following a trial at the court, Mrs
Maina was found guilty of willfully
murdering her son. The judge con-
victed her on the strength of circum-
stantial evidence adduced by various
prosecution witnesses.
Lawyer Omae, who represented
the rst accused, argued that the two
had a peaceful marriage and would
not have plotted the murder of their
son. He pleaded for leniency for the
accused, saying she has another child
she gave birth to while in custody.
Justice Ombija directed Mrs Maina
to appeal within 14 days.
Incase the mother is handed a
death sentence it will be harsh to the
child and I request the court to do jus-
tice to the innocent child, Omae
said.
By CAROLINE RWENJI
Labour Cabinet Secretary Kazun-
gu Kambi can now breathe easy. A pe-
tition led by an activist challenging
his academic qualications has been
dismissed.
High Court Judge David Majanja
dismissed the case in which activist
Charles Omanga and eight others
sought to have the Labour CS com-
pelled to reveal his credentials.
Justice Majanja said in his judge-
ment that the petitioner had followed
the wrong approach in seeking the in-
formation. The petitioner argues that
this provision (Article 35) is self pro-
pelling and that a person is entitled to
apply to the court directly for such in-
formation to be given. In my view, this
is the wrong approach, he said.
Mr Kambi (left), the court said,
cannot be coerced to provide the in-
formation before a State organ, insti-
tution or body is given an opportuni-
ty to provide the information.
The petitioner must demonstrate
that the information sought is re-
quired for the protection or exercise
of any right or fundamental freedom,
Justice Maganga said.
The petition, he further said, failed
as the petitioner failed to show how
he requires Kambis degree to protect
any of his fundamental freedoms.
In the petition led on January 22,
Omanga challenged Kambis appoint-
ment as the Labour CS and further
sought to have the court compel the
him to provide a self declaration form
and produce his university degree.
FUNNY BEHAVIOUR
Omanga accused Kambi of con-
ducting himself in a manner incom-
patible with the status of a degree
holder.
He claimed that that is reason
enough to believe that the Labour CS
is not a degree holder and that he gave
false and misleading information on
his competence.
Kambi termed the petition as mis-
conceived as that the information is
available. The petitioner, he said, has
failed to direct the request to the right
body.
The petitioner has not indicated
that he intends to enforce a right or
fundamental freedom as the manner
of appointment and removal of a Cab-
inet Secretary is provided for by the
Constitution and in the circumstanc-
es the court cannot be called upon to
conduct a review of the appointment
or commence the process of remov-
al, he said.
Court now throws out petition on Kambis credentials
Jane Gathiga Maina with her husband Walter Njuguna Maina at the Milimani
Law Courts yesterday. Mrs Maina was jailed for 10 years for the murder of
her four-year-old son at Kingeero, Kiambu County.[PHOTO: FIDELIS KABUNYI]
Page 11 Tuesday, May 6, 2014 / The Standard
Page 12 / NATIONAL NEWS Tuesday, May 6, 2014 / The Standard
Kithure
accuses
leaders of
abusing law
By MOSES NJAGIH
Senate Majority Leader Prof
Kithure Kindiki has criticised the
sudden wave of impeachment of
governors by members of county
assemblies, warning that it will
slow down devolution.
Kindiki said the constitutional
clause allowing MCAs to impeach
county bosses must be used spar-
ingly and as a last resort to avoid
incapacitating governors.
Impeachment should not be
used as the weapon of rst resort.
It should be used sparingly and
only when all other avenues have
been exhausted. It should never be
that whenever a governor has
done something wrong then MCAs
rush to bring him down, said
Kindiki.
In a press conference yester-
day, the Tharaka Nithi senator said
the drafters of the Constitution an-
ticipated that impeachment would
only be the ultimate measure
when all other avenues have been
exploited.
He said it was discouraging
that MCAs were now abusing the
provision and using the leeway to
blackmail and issue threats to gov-
ernors, hampering their perfor-
mance.
It (impeachment) is not meant
to be abused to incapacitate gov-
ernors from doing their work. It
should be brought only when
there are serious allegations of
breach of law. It must not be em-
ployed on frivolous grounds, he
said.
MCAs in several counties have
either begun the impeachment
process or given indications of
their intention to send the county
bosses home over various allega-
tions, prompting senators caution
that they will only entertain a pro-
cess backed by strong grounds as
stipulated in the law.
Duale: Let KDF
stay in Somalia
By STEVE MKAWALE
National Assembly Majority
Leader Aden Duale says Kenyan
soldiers should not be withdrawn
from Somalia.
Duale dismissed calls for an ex-
it plan for Kenya Defence Forces
troops serving under the African
Union Mission in Somalia (Ami-
som), saying peace has to be re-
stored. We must stand by our
troops serving in Somalia. The se-
curity personnel need support of
all Kenyans in the face of rising
terror threats. We are not going to
leave Somalia, said Duale.
Speaking in Kuresoi South
Constituency, Nakuru County, Du-
ale said Kenya was yet to meet its
objectives in Somalia. Until we
eliminate terrorists, KDF shall re-
main in Somalia, he said.
Welcome to Nigeria, Mr President!
President Uhuru
Kenyatta inspects
a guard of honour
mounted by the
Nigerian Armed
Forces at State
House, Abuja,
Nigeria. Uhuru
received a 21-gun
salute, the highest
military honour
given to a visiting
Head of State, with
the Nigerian
military band play-
ing the two
countries national
anthems.
The President,
accompanied by
First Lady
Margaret Kenyat-
ta, is on a three-
day state visit.
[PHOTO: PSCU]
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Will senators
fury over MCAs
favour Wambora?
By MOSES NJAGIH
Senate reconvenes this afternoon
for a special session to deliberate on
the fate of Embu Governor Martin
Wambora, following the county chiefs
second impeachment.
The sitting comes as highly placed
sources indicated to The Standard
that the embattled governor could
benet from the heat directed at
members of county assemblies
Senate is unhappy
with MCAs for using
impeachment clause
to blackmail and hold
governors at ransom
THE GOINGS-ON IN THE HOUSE
The Senate last week received the instru-
ments of impeachment from the County As-
sembly of Embu, prompting Speaker Ekwe
Ethuro to call senators, who are currently on
recess, for a special sitting
The meeting is expected to deliberate on
the way forward, following the new process
The High Court nullifed the initial pro-
cess that had seen the House send Wambora
home, granting him a major reprieve
Khalwales team of 11 senators had ap-
proved Wamboras impeachment, a position
upheld at the vote by 45 of the 47 senators
(MCAs) by senators over the im-
peachment wave in counties.
A group of senators led by Major-
ity Leader Kithure Kindiki (pictured)
and Kipchumba Murkomen (Elgeyo/
Marakwet) turned the heat on MCAs
at the weekend, accusing them of em-
ploying blackmail and impeachment
threats to gain favours from gover-
nors.
Yesterday, senators appeared di-
vided on the new procedure, with
some saying it will be unnecessary to
constitute another special committee
to determine the matter, given the
grounds for impeachment are the
same as those earlier handled by the
rst committee headed by Kakamega
Senator Boni Khalwale.
CASE DETERMINED
Khalwales team of 11 senators had
recommended the impeachment of
By PAMELA CHEPKEMEI
The Law Society of Kenya (LSK)
has moved to court to stop the Gov-
ernment from paying out Sh1.4 bil-
lion to non-existent companies in the
Anglo Leasing scandal.
LSK is seeking court orders stop-
ping the Treasury and the Attorney
General from paying any money re-
lated to the 18 Ango Leasing types of
contracts.
Also being sought is an order com-
pelling the Cabinet Secretary for Trea-
sury Henry Rotich and the AG Githu
Muigai to produce in court evidence
of any payments made so far to First
Mercantile Securities Corporation
within seven days.
LSK through lawyer James Mwa-
mu told the High Court in Nairobi that
the Government of Kenya was about
to move Parliament to approve the il-
legal payments.
Judge David Majanja certied the
case urgent and directed LSK to serve
the Cabinet Secretary Treasury and
the Attorney General for hearing to-
morrow.
The judge however, declined to is-
sue interim orders stopping the Gov-
ernment from making any pay-
ments.
Justice Majanja said he was satis-
ed that the case was urgent but pay-
ments were not likely to be made
soon.
The payment of $12 million is not
so imminent as to demand an ex parte
order, he ruled.
Mr Mwamu said the application
was urgent because Kenyans would
be made to pay billions to non-exis-
tent entities, if the court did not inter-
vene.
By BENARD SANGA
The Industrial Court in Mom-
basa yesterday halted a special
conference organised by the
Dock Workers Union (DWU) top
brass to formalise the unions de-
fection from the Central Organi-
sation Trade Unions (Cotu) to the
Public Servants Trade Unions Ke-
nya (Pusetu).
DWU ofcials had convened
the meeting scheduled for yester-
day afternoon to validate its de-
fection to Pusetu and kick-start
the process to enable Kenya Ports
Authority (KPA) to start submit-
ting members contribution to
the new entrant.
DWU Secretary General Si-
mon Sang requested KPA to sub-
mit the over 6,000 DWU mem-
bers contribution to Pusetu as
from next month through a no-
tice.
Union members contribute
Sh100 every month and the move
may deny Pusetu cash to roll out
a recruitment exercise in Mom-
basa scheduled to start this week
as earlier announced by Sang.
Upon reading the claimants
application led under certi-
cate of urgency it is hereby or-
dered that there shall be no meet-
ing of the special conference as
advertised, the court ruled.
The Industrial Courts direc-
tive was reached at after some
union members opposed to the
defection led a notice to stop
the meeting that was expected to
approve that members contribu-
tions be remitted to Pusetu.
Dock workers
move to
Pusetu halted
Wambora, a position upheld during
the vote by 45 of the 47 senators, with
only Baringos Gideon Moi opposing
while Embus Lenny Kivuti ab-
stained.
Wamboras case was determined
by the House long ago and that is the
Senates position. It would be a waste
of time for us to again go back to the
committee stage to listen to issues
that had been canvassed, said a sen-
ator who sat in the Khalwales com-
mittee but declined to be named to
avoid appearing to be anticipating
debate, which is an offence in Stand-
ing Orders.
However, Murkomen, who also sat
in the Khalwale-led committee, said
he expected the House to treat the
new impeachment apparatus as
though it has never been brought to
the attention of the house.
Our proceedings must be as if we
have never handled this matter be-
fore. We will look at all the evidence
afresh, ignoring the rst proceedings
that we had, said the Elgeyo/Marak-
wet Senator.
He added: If he (Wambora) brings
a new line of defence that he had nev-
er brought, we will evaluate it on its
own merits and if he presents his case
well, we may as well acquit him of the
charges.
Murkomen said Senate must re-
spect the ruling of the High Court,
which nullied the initial process,
and treat the current impeachment
afresh following the stipulations of
the law.
LSK seeks court help on Anglo Leasing payment
Page 13 Tuesday, May 6, 2014 / The Standard
Page 14 / EDITORIALS
Tuesday, May 6, 2014 / The Standard
Enable journalists to
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THE STANDARD GROUP
Newsdesk: 3222111
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Email: oped@standardmedia.co.ke
Group Managing Editor (Print): Kipkoech Tanui
Registered at the GPO as a newspaper.
Make education affordable for everyone
WHAT OTHER MEDIA SAY...
A
free Press, said Albert Camus, can, of course, be
good or bad, but, most certainly without
freedom, the Press will never be anything but
bad.
Kenya joined the rest of the world in marking the
World Press Freedom Day. This is a day that the United
Nations General Assembly, acting on the recommenda-
tions of Unesco, proclaimed in 1963 in Windhoek,
Namibia. The 2014 celebration is anchored on three
themes: the safety of journalists; the rule of law; and the
sustainability and integrity of journalism.
In Kenya, there is so much for the Fourth Estate to
celebrate, yet there lurks unending fear of dark forces
rolling back the achievements made so far. More than
ever before, the led are holding their leaders to account
for decisions they make while in service. A properly
curious Press has made that possible. The Kenya Editors
Guild has decried constant threats and intimidation by
the State. It is not enough for the Executive to issue
statements about the Governments commitment to
supporting Press freedom. Government needs to match
words with deeds. And one way of doing that is enabling
journalists to access information through enactment of
the Freedom of Information Act, in compliance with
Article 35 of the Constitution.
Lack of information and the secrecy that surrounds
Government dealings is one reason why sometimes
journalists get it wrong. When journalists are left to
guesswork, there is bound to be distortions of facts and
misrepresentation. The Government needs to appreciate
the role the Press plays in informing and educating the
public. As the Fourth Estate, the Press plays a critical
role in holding the feet of the other arms of Government
to the fire and celebrating the achievements of those in
Government. It works for the common good. Govern-
ments are used to mischief and would like to sweep
under the carpet acts of misdemeanor by those in its
ranks. A Press working in a freer environment will no
doubt be a force of good for all.
FastTrack
FOOTBALL: Rongo shine
in Migori tournament
Ten-man Rongo beat Awendo
FC 1-0 to emerge the champions
of the Migori County annual
tournament at Migori Stadium
at the weekend. Rongo, who
dominated the game, netted the
only goal through Clinton Okoth.
Earlier, Rongo had hit hosts Suna
West 1-0 in the semi-nals, while
Awendo had eliminated Suna
East 3-2 in post-match penalties
to advance. In the womens
category, Awendo beat Suna East
3-0 to emerge the champions. In
the semis, Awendo had beaten
Nyatike Ladies 7-0. The winners
got Sh50,000, the runners-up
30,000 while the rest took home
trophies.
Nick Oluoch
FOOTBALL: Greenyard
edge Tickles at Mesora
Greenyard beat Tickles 5-4
in the Wazee Pamoja League
at Mesora grounds over the
weekend. Zeddy Otieno and Ken
Otieno scored a brace each, with
Uche Chisia netting one to give
the home team a deserved win.
Sammy Mbugua, Phillip Kaunda,
Tom Olabiro and Johnson Karonji
scored one each for Tickles.
In another match played at
Jericho Lower grounds, Nzoia
recorded a slim but productive
1-0 win against league debutants
Runoff. Jambo edged Ujuanga
2-1 in another encounter while
Paradiso beat Seniors 2-1 as
Tipples whitewashed Paris 4-0.
Rebecca Gichana
FOOTBALL: Kolongolo
thrash Kitale
Kolongolo FC beat Kitale
Community 5-0 in a National
Division One match played at
Mumias Boys Muslim grounds
in Mumias town, on Sunday.
Kolongolo were quick to nd
the net through Bakari Okutoyi
just after 9 minutes. Kitale
Community were hit again when
Julius Obwamu doubled the
lead for the hosts on 25-minute
mark. Kolongolo put the match
beyond their visitors soon after
the second half kicked off when
Bakari Okutoyi completed his
hat-trick on 53rd and 89th
minutes. Salim Amanya had
scored the fourth after 78
minutes.
DREAM SQUAD NAMED
Kwanthanzes Lowen joins
Africa Youth Games team
Rabadia strikes half a century to guide
Samaj to NPCA tournament title victory
By OSCAR PILIPILI
Hosts Shree Cutchi Leva
Patel Samaj (SCLPS) cricket
team beat Nairobi Nookers by
19 runs in the Nairobi Province
Cricket Association 40 overs
cricket tournament nal to lift
the title last Sunday.
Nookers won the bat and
elected to eld.
SCLPS (pictured) scored
205 for the loss of 9 wickets in
40 overs, thanks to the ne bat-
ting performances of Sham Ra-
badia, who scored 51 runs, and
Raj Bhudias contribution of 28
not out.
Jolet Abraham bowled well
for Nookers, taking 2 wickets
for 30 runs in the rst innings.
Nookers fought well but
were bowled out for 186 all out
in 39 overs, thanks to brilliant
knocks by former national
team wicket keeper Kennedy
Otieno 66 and Pramod Seth
45.
In bowling, Nikhil Nathan
and Pravin Rabadia claimed
four wickets each and conced-
ed 31 runs apiece on their way
to stopping Nookers.
Bhudia took two brilliant
catches during the exciting -
nals.
Rabadia was named Man
of the Match while Otieno was
declared Best Batsman.
Nathan displayed great
bowling skills during the
match and it came as no sur-
prise when he was declared
Best Bowler of the nal while
Bhudia was content with the
Best Fielders award.
The umpires, Narendra
Dave and Subhash Modi, en-
joyed umpiring the incident-
free and exciting nal, thanks
By OSCAR PILIPILI
National volleyball womens
coach Catherine Mabwi has
named a 12-member squad for
the second edition of the Afri-
can Youth Games scheduled
for Gaborone, Botswana, on
May 22-31.
The team started residen-
tial training at Nyayo National
Stadium yesterday.
Mabwi has selected six
players from Kwanthanze
High School. The six are Kwan-
thanzes new captain Ann Lo-
wen, Teresa Akai, Lilian Lelei,
Lilian Kavinya and Yvonne
Wavinya.
Wavinya is still remem-
bered for masterminding
Kwanthanzes dramatic recov-
ery against Lugulu to win the
National Championships last
year.
In one of the major up-
sets witnessed in high school
games, Kwanthanze rallied
from their 8-14 decit in the
fth set to beat Lugulu 16-14,
with Wavinya scoring all the
points for her team.
Lowen, Akai, Lelei and
Kavinya were also part of the
Kwanthanze squad that won
the nationals and went ahead
to clinch the East African
Games title.
VETERAN COACH
Mabwi, the veteran youth
coach, who is also a former
professional and national team
player, has identied two play-
ers each from National Youth
Talent Academy (NYTA) and
Mautuma High.
The players from the Nairo-
bi-based centre of excellence
are Newtel Nanyama and Glo-
ria Mogoi.
Mautumas duo of Nelica
Wabwire and Linet Muremi
have also made the cut and are
expecting to make their maid-
en international debut soon.
The Mautuma girls volley-
ball team is one of the most re-
spected sides in Western Kenya
secondary school circles.
KEY ROLE
Wabwire and Muremi
played key role in Mautumas
qualication to the Nzoia Re-
gional Games last season.
The youth team also fea-
tures Winnie Tabut of Kosi-
rai and Sarah Were of Kongoli,
Bungoma County.
Tabut was a key gure in
the Kosirai team that bagged
bronze, both in the nationals
and the East African Second-
ary School Games last year.
The team has been train-
ing at Moi International Sports
Centre Kasarani for the last
two months in readiness for
the AYG.
Mabwi said: We shall
train at Nyayo for the start but
we shall be playing build-up
matches against NYTA at Kasa-
rani.
Mabwi praised the select-
ed players, saying they were
among the best in their age
group.
The players are very
promising and all have poten-
tial to make the senior national
team, she said.
The African Youth Games
is an international multi-sport
event held every four years to
complement the current All-
Africa Games.
The rst games were hosted
by Rabat, Morocco, in 2010.
opilipili@standardme-
dia.co.ke
KENYA VOLLEYBALL SQUAD
Ann Lowen Kwanthanze
Newtile Nanyama NYTA
Lilian Lelei Kwanthanze
Linet Muremi Mautuma
Teresia Akai Kwanthanze
Lilian Kavinya Kwanthanze
Gloria Magoi NYTA
Winnine Tabut Kosirai
Yvonne Wavinya Kwanthanze
Sarah Were Kongoli
Beldine Ajigo Kwanthanze
Nelica Wabwire Mautuma
to the players for playing the
match with a good spirit.
Modi said: I would like to
take this opportunity to thank
the captains of both teams
Hitesh Varsani (SCLPS) and
Amit Thingan (Nookers) for
leading all their players to a
fantastic and exciting nal.
Varsani said: The match
was very competitive and I
would like to praise my team-
mates for their great display
that ensured we emerged vic-
torious.
The nal match that was
hosted by the management of
the SCLPS under the banner
of NPCA brought the curtains
down on the NPCA season.
NPCA chairman, Tom Tiko-
lo, said: I want to take this
opportunity to thank all the
teams that participated in the
tournament. It was because
of the presence of these teams
and their desire to play that
made the event a success.
Meanwhile, 23 years since
he took part in the failed 1992
campaign, Craig McDermott
will mentor Australias fast
bowlers at the 2015 World Cup
after re-signing with Cricket
Australia as assistant coach
with the national team for two
years.
Recognising the success of
the Test bowling battery against
England and South Africa, CA
have upgraded McDermotts
contract and increased his re-
mit to cover major tours across
all formats.
Lilian Kavinya of
Kwanthanze
(right) attacks
the blocks from
Lugulu during
past national
games.
[PHOTO:FILE/
STANDARD]
WAMUNYUA REIGNS
Tuesday, May 6, 2014 / The Standard Page 52 / FEVERPITCH
Referees
course begins
at Nyayo
...as Munyao claims Sunset
Golng Society title in Nyali
Joe Muchiri and Julius Mwachoya in a XADO Subaru GC8 during a
past rally.
By OSCAR PILIPILI
Kenya Motor Sports Club
(KMSC) will run Formula Club
Series (FCS) 3 Rally entirely on
private quarry farm roads in
Athi River plains on Sunday.
Ofcials said drivers and
navigators will be using the
rally to test their cars ahead of
the Rift Valley Sports Club KCB
Nakuru Rally which returns to
Eldama Ravine on May 24-25.
FCS3 Clerk of the course,
Jaswinder Chana said the Athi
River event promises thrills
and spills given that the route
course is all on private land.
This will be the second
consecutive event that KMSC
is organising this month fol-
lowing the successful conclu-
sion of the Kenya National Au-
tocross Championship 3 held
at Jamhuri Park last Sunday.
This FCS rally is a mix of
long, fast and twisty roads. En-
tries opened today and we are
expecting at least 25 drivers to
sign up, Chana said yester-
day.
The (Additional Supple-
mentary Regulations (ASRs)
and entry forms are also out so
we urge all competitors to read
through and keep abreast with
the key regulations of this ex-
citing form of rally, said Cha-
na, who is also the 2013 Group
S/SPV Rally champion.
The FCS was introduced
this year to whip up the enthu-
siasm of young budding driv-
ers to join the rally sport. This
season it has been to Isinya
in February courtesy of Sikh
Union Nairobi and in Migaa in
late March organised by Rallye
Athi River to host Formula Club Series Rally
By MAARUFU MOHAMED
Mombasa Golf Clubs for-
mer Chairman Johnstone Wa-
munyua posted 38 stableford
points to emerge the overall
winner of the Empires of the
market Three C teacher Award
tee-off golf tournament played
at the par 71 club course on
Saturday.
The day-long 18 holes sta-
bleford tournament that at-
tracted 160 golfers from the
club, Nyali, Malindi, Leisure
and Vipingo, was organised
by the Three C Consultancy
to reward the best teachers
from primary and secondary
schools from the six counties
at the Coast.
The programme launched
last February was graced by the
Kenya Ports Authority chair-
man Danson Mungatana.
Handicap 14 Wamunyua
sank a rare birdie on the par
ve-14th hole ,added six level
pars on six holes and played
a mixed pot of bogey shots on
the rest to claim the trophy.
Its my rst major victory
this year but its a good win,
Wamunyua told FeverPitch.
Qambar Somji, playing off
handicap 10, posted 35 points
to claim the runners-up slot,
a point ahead of handicap
18 Mwangi Mburu who was
third and handicap 20 Duncan
Kingori who nished fourth
on 33 points.
OVERALL WINNER
At Nyali course, handicap
two George Munyao posted a
count back score of 35 points
to claim the 2014 Sunset Golf-
ing Society trophy after ty-
ing on the same points with
runner-up handicap 19 Ijaz
Sheikh. Taking the third place
was handicap 24 D Kairuthi
who had 34 points.
At the par 72 Leisure Lodge
Resort course, handicap 21
Luke Doig posted 38 points to
emerge the overall winner of
the Club nite event played last
Wednesday with 120 golfers in
attendance.
MAIN AGGREGATE
Elsewhere at the Thika
course that forms part of the
scenery in the Tarzan Mov-
ies, the two-day 2014 Winston
Churchill Aggregate Subsid-
iaries event played on Satur-
day and Sunday, was won by
Patrick Ciano who had a total
gross score of 143 after posting
74-69 gross on both days.
Ciano, who beat a team of
145 golfers, was a point ahead
of J Gachomba who nished
second after playing a 68-76
gross in both days while Paul
Kamau Waweru was third
placed on 145 gross.
In the main aggregate sec-
tion, Jeremiah Karanja was the
winner on a total of 140 gross,
while Patrick Kingori emerged
the runner-up on a score of
142 gross. He was followed in
third place by Limurus John
Karichu on 143 gross.
By REBECCA GICHANA
Football Kenya Federation
(FKF) Nairobi branch has or-
ganised a ve-day beginner
referees seminar at Nyayo Na-
tional Stadium.
This is the rst time the
branch is organising such a
course owing to shortage of
match ofcials.
Speaking during the open-
ing ceremony FKF chairman
Sam Nyamweya asked other
branches to follow suit.
Kenyan referees are doing
well because they are compe-
tent and hardworking. This is
the reason our referees are on
top of their game. This course
offers a big opportunity for the
improvement of football in the
country. I urge the referees ap-
pointing committee to be fair
when making their appoint-
ments, said the FKF boss.
Nyamweyas sentiments
were echoed by referees tech-
nical chairman Elly Mukolwe
who said: The training has
come at an opportune time
because in the next three years,
we want to see ve referees in
the Fifa list.
OTHER WEEKEND RESULTS
LIMURU: Dimensions Architects Charity
Golf Winner- O. Githere (19)-42
Pts, R-Up-Robert Waithaka (15)-39), third-
Hannah Njenga (30) -38 Pts.
NYAHURURUCLUB: Friends fromNairobi
event Winner-Simon Ngugi (06)-41 pts,R/
Ups-Maina Dennis (15)-37pts, Third-Isaac
Githui (07) -37pts.
VET LABSPORTS CLUB:Techno Mobiles
event Winner-Peter Mambo(22)-38pts,
R/Ups-Kavi Khamar (22) -38pts, Third-3
-Jared Ouko (13)-38pts.
SIGONA
Vaisakhi Golf Cpmpetition Results; Winner:
Kimemia F Mwangi 40pts; R/up; Rajesh
Karia: 37pts; Third: Vinay Shah 37pts;
Fourth:Kinyanjui Ndenderu 37pts; Fifth
Kiran MPatel36pts; Guest Winner: Gailey
Singh 35pts; First Nine; Ajitabh Choda
22pts; Second Nine Minesh HAria 20pts
By GILBERT WANDERA
Abdulrahman and Saad Ad-
vocates beat Red Catalans 3-1
in a Division Three match of
the Left-foot league match on
Sunday.
Goals by Abdulatif Abdirizak
and then two goals in the sec-
ond half from Usmam Zedco
in the 55th and 64th minutes
sealed the victory.
The consolation goal for
Catalans came through Boni-
face Kioko in the 67th minute
through a penalty.
In other Division Three
matches on Sunday, I-Hub
edged Gheto Boys 2-0 with
Housing Finance and West
Ham United drawing 2-2. Si-
lent Assasins and Schindler
also ended in a barren draw as
Amiran Lions held Samba 1-1.
Rhino Special Products
continued with their good
performance after overcoming
Lavington United Church 2-1
and Toyota Kenya edged out
Ravers Toto Sports 1-0.
In the Division Two catego-
ry, All Saints Cathedral hit Safa-
ricom 4-1 even as Emmerdale
fell 2-0 to ICC.
Astra Aviation and Nyayo
were also big winners in this
category. Aviation beat Disc-
ples 3-0 while Nyayo hit Jericho
Adventist 2-0 and Astral Avia-
tion A hit Bethel B 1-0.
Saad stop
Red Catalans
Sports Club.
FCS rallies have also been
designed to help organisers
carry out training of ofcials in
the run-up to Kenya National
Rally Championship (KNRC)
events.
Top drivers have used the
series to test their machines
ahead of the KNRC races.
Among them were round
one winner Onkar Singh Rai
and Mahesh Halai who tested
their EVOX and Subaru N12
cars in Isinya ahead of season
opening KCB Malindi Rally.
Jaspreet Singh Chatthe aka
Jassi also used RSC FCS 2
as a bonding session with his
new Zambian navigator Dave
Sihoka who incidentally is
the reigning Africa navigator
champion.
Among those expected to
enter the FSC 3 this weekend
include newcomers Nishal
Shah and Ahvit Bij in a VW Golf
GTI, defending F2 champions
Dennis Mwenda and Edward
Njoroge in a Totota Sprinter
GT, winners of Round 2 Steve
Mwangi and his namesake Ste-
ven Nyorri in a Subaru Impreza
N10.
opilipili@standardme-
dia.co.ke
George Munyao follows his
tee during the Sunset
Golng Society trophy
tournament at Nyali Golf
Club on Saturday.
[PHOTO:MAARUFU MO-
HAMED/STANDARD]
Tuesday, May 6, 2014 / The Standard FEVERPITCH / Page 53
TUSKER IN TROUBLE
By BOSCO MAGARE
Fervent support by
Chemelil Sugar fans pro-
pelled the millers to overturn
Thika Uniteds 1-0 lead, which
threatened to break their Ke-
nyan Premier League (KPL)
unbeaten record.
Playing before partisan
Chemelil Sugar supporters
who lled the Chemelil Sports
Complex terraces, visiting
Thika United stunned the
millers with a 75th minute
goal.
Incensed by Thika Unit-
eds lead, Chemelil Sugar fans
resorted to an unprecedented
form of support.
The fans, led by Tobias
Ouma Ongudi, Ochieng
Jabucher, Barnabas Okony-
ene, Ouma Nyawara and
Omondo Abor, blew vu-
vuzelas and engaged in wild
cheering and drum beating.
The fans, transported to
the stadium on boda bodas,
matatus, cane haulage trac-
tors and buses, rallied the
millers to turn the tide against
Thika United.
Spurred by the enthusias-
tic support of their fans who
had travelled from Kisumu
City, Nandi Hills, Kapsabet,
Ahero, Koru, Muhoroni, Mi-
wani, Kopere and Katito, the
hosts changed tack and, in a
span of 10 minutes, levelled
the scores in the 80th minute
through a blistering shot by
Stephen Wakanya.
This cancelled Thika Unit-
eds 75th minute goal scored
by second-half substitute
Moses Arita whose shot went
past the millers custodian,
Jairus Adira.
RUNNER UP
Wakanya, who was last
season declared the second
runner-up best KPL Young
Player of the Year, latched on-
to a superb cross by Hillary
Echesa to score during the
match ofciated by Nakuru-
based Denis Omweno.
Omweno reduced Thika
Uniteds arsenal to 10 men af-
ter red-carding Dick Clay for
a foul tackle on Chemelils
Gershon Likonoh.
Chemelil Sugar were
awarded a free-kick outside
the box area only for Echesa
to swirl the shot to score the
millers all-important goal in
the 89th minute past Thika
United custodian Hamzi
Mwangi, sending the home
fans into wild celebrations as
crest-fallen Thika United
players and technical bench
remained speechless in the
centre of the pitch for almost
20 minutes.
Chemelil fans were enthu-
siastic as the teams nal re-
sult propelled them to the top
of the league standing albeit
for a day before KPL defend-
ing champions Gor Mahia
moved into the driving seat
on Sunday after edging Sony
Sugar 1-0 in Afraha Stadium,
Nakuru.
The Nyando Sugar-belt
based premier side Chemelil
Sugar has maintained an his-
toric and unprecedented un-
beaten record in the on-going
Tusker Premier League.
Home fans cheer Chemelil Sugar to victory
NATIONAL SUPERLEAGUE
KENYAN PREMIER LEAGUE
P W D L F A GD PTS
Gor Mahia 11 7 2 2 16 8 8 23
Chemelil Sugar 11 5 6 0 9 3 6 21
KRA 11 6 2 3 7 8 -1 20
Sofapaka 11 5 3 3 21 11 10 18
Tusker 11 5 3 3 15 13 2 18
Thika United 11 3 6 2 10 9 1 15
Western Stima 11 4 3 4 15 15 0 15
Muhoroni Youth 11 4 3 4 7 12 -5 15
Sony Sugar 11 3 5 3 9 6 3 14
AFC Leopards 11 3 5 3 5 5 0 14
Bandari 11 3 4 4 11 11 0 13
Ulinzi Stars 11 2 7 2 8 8 0 13
City Stars 11 2 6 3 7 9 -2 12
Mathare United 11 2 4 5 3 6 -3 10
KCB 11 1 3 7 11 19 -8 6
Top Fry Nakuru 11 1 2 8 5 16 -11 5
Homeboyz 7 5 1 0 12 4 +8 17
Zoo Kericho 7 5 0 2 16 10 +6 15
Busia United 8 4 2 2 8 8 0 14
West Sugar 7 3 3 1 10 6 4 12
Nzoia United 7 3 2 2 8 7 1 11
Agro Chemical 7 3 2 2 7 4 3 10
St Joseph 6 2 4 0 5 3 2 10
Shabana 6 3 0 3 9 5 4 9
Finlays 6 2 1 3 5 6 -1 7
GFE 105 7 1 1 5 4 9 -5 4
Hotsprings 8 1 0 7 3 13 -10 3
Karuturi Sports 6 0 1 5 2 14 -12 1
UON 7 4 3 0 11 3 8 15
Kangemi United 6 3 2 1 9 6 3 11
Eastleigh Youth 7 3 3 1 6 5 1 11
JMJ 5 3 1 1 7 4 3 10
Mumbi Nationale 5 3 1 1 6 4 2 10
Sparki Youth 6 3 0 3 8 7 1 9
Kibera Celtic 6 2 2 2 6 5 1 8
Yatta Combine 5 2 2 1 2 1 1 8
Isiolo Youth 5 2 1 2 5 4 1 7
Takaye 3 1 2 0 4 2 2 5
West Ham 5 1 2 2 4 6 -2 5
Coast United 5 1 2 2 4 7 -3 5
Red Eagles 4 0 2 2 2 5 -3 2
Magarini 2 0 1 1 2 3 -1 1
Kitengela Shooter 5 0 1 4 3 9 -6 1
Jericho All Star 4 0 0 4 2 8 -6 0
Green Berets 6 6 0 0 17 2 15 18
KEMU 7 3 2 2 15 11 4 11
Mnarani 5 3 2 0 6 3 3 11
Brighter Stars 6 2 3 1 10 8 2 9
Strathmore Unv 6 2 3 1 78 -1 9
Kanjeru United 4 2 1 1 5 4 1 7
Tum 6 2 1 3 9 11 -2 7
Kulun 6 2 0 4 9 16 -5 6
Limuru Vysa 5 1 2 2 9 8 1 5
Vimbwanga 4 1 2 1 4 5 -1 5
Fresha 3 1 1 1 2 3 -1 4
Police 3 1 0 2 7 6 -1 1
Mua United 4 0 2 2 5 8 -3 2
Chogoria 4 0 1 3 3 10 -5 0
Alaskan 3 0 0 3 2 7 -5 0
NATIONAL DIVISIONONEZONEB2
LOCAL FOOTBALL STANDINGS
DIVISIONONEZONE1A
Chemelil Sugar fans celebrate after the millers 2-1 win over
Thika United at Chemelil Sports Complex on Saturday. [PHOTO/
BOSCO MAGARE/STANDARD]
Tusker coach Francis Kimanzi (left)
and AFC Leopards assistant
coach Juma Abdalla reacts at
the weekend after beating
Tusker 1-0. [PHOTOS:DENNIS
OKEYO/STANDARD]
By GILBERT WANDERA
When the Kenyan Premier
League (KPL) season started,
former champions Tusker
looked like they would win it
hands down.
The brewers enjoyed great
dominance and led in the
standings for a good part of
the rst leg.
Tusker were dominant in
six of their seven matches, of-
ten coming from a goal down
to win their xtures.
But recent results have
proved that the honeymoon is
over for Tusker.
The brewers went down 1-0
to AFC Leopards on Saturday,
marking their third loss in a
row this s eason. The loss came
after losses to Chemelil Sugar
(1-0) and Sofapaka (4-2) and
has almost thrown them out of
the title chase.
Sofapaka, another top title
contender, have also lost three
matches and like Tusker, look
to have fallen out of conten-
tion for the top prize.
But Tusker coach Francis
Kimanzi has refused to give up
and believes his side has just
been unlucky so far.
BAD LUCK
Asked whether he thinks
the latest loss has condemned
his sides title ambitions, the
coach said: My focus is on the
number of matches remaining
to end the season. Ours has
been more of bad luck than
poor performance.
My players have been
giving their best on the pitch
but have been unlucky when
it comes to scoring and so we
will continue to work on it.
For AFC Leopards assis-
tant coach Juma Abdalla, the
win could not have come at
a better time and he believes
it will turn their performance
around.
This as an important vic-
tory for us and will give us lots
of condence in the remaining
matches, he said.
HISTORICAL WIN
It was a his-
toric win for
Leopards
who had
not beat-
en Tusker
s i n c e
1998.
T h e
w i n
marked a
maj or
turn around for Leopards who
are yet to appoint a head coach
since ring James Nandwa for
poor results.
And despite Gor Mahias
off-pitch problems, the cham-
pions picked another impor-
tant win after stopping Sony
Sugar 1-0 at Nakurus Afraha
Stadium on Sunday.
The win enable Gor to re-
main at the top of the stand-
ings with 23 points and they
look set to defend their title.
Elsewhere, former Gor Ma-
hia striker Edwin Lavatsa won
the Algerian Cup with his club
MC Algiers at the weekend.
Algiers edged out JS Kabylie
1-0 in the nal, giving the Ke-
nyan his rst trophy in a for-
eign country.
The victory enables MC Al-
giers to play in next years Con-
federations Cup tournament.
Lavatsa joined the Algeri-
an outt at the beginning of
this season after Gor Mahia
failed to renew his contract.
gwandera@standard-
media.co.ke
Spate of losses dent the
brewers title ambitions
FOOTBALL: Amrouche
names 17 for Comoros tie
National team Harambee Stars
head coach Adel Amrouche has
called up 17 local players for the
May 17 Africa Cup of Nations
qualier against Comoros.
Amrouche has included three
new faces in the team among
them impressive Kenya Revenue
Authority (KRA) midelder
Geoffrey Omusula, Hillary Otieno
from Kariobangi Sharks, Ulinzi
Stars defender Oliver Kipruto
as well as Mathare Uniteds
Harrison Mwendwa. Gor Mahia
goalkeeper Jerim Onyango makes
a come-back to the team as well
as Wycliff Kasaya (AFC Leopards )
and Wilson Obungu (Bandari).
THE SQUAD:
GOALKEEPERS: Wilson Obungu (Bandari),
Wycliffe Kasaya (AFC Leopards), JerimOnyango
(Gor) DEFENDERS: James Situma (AFC), David
Owino (Gor), Musa Mohammed (Gor), Mulinge
Ndetto (Ulinzi), Oliver Kipruto (Ulinzi), Joackins
Atudo (Tusker), Hillary Otieno (Kariobangi
Sharks)
MIDFIELDERS: Antony Akumu (Gor), Clifton
Miheso (Sofapaka), Paul Kiongera (KCB),
Geoffrey Kataka (KRA), Harrison Mwendwa
(Mathare Utd). STRIKERS: Allan Wanga (AFC
Leopards); Jacob Keli (AFC Leopards)
Page 54 / FEVERPITCH Tuesday, May 6, 2014 / The Standard
Atletico Madrids Gabi Fernan-
dez (right) duels for the ball
with Levantes Sissoko.
Madrids draw meant that
Atletico can clinch the title
if it takes four points from
its last two games because
it holds the head-to-head
tiebreaker over Madrid if
they end up level on points.
Atletico hosts Malaga next
weekend before nishing the
season at Barcelonas Camp
Nou.
Now the league is that
much more interesting,
Atletico coach Diego Sim-
eone said after his teams
nine-round winning run
came to a halt at Ciutat de
Valencia stadium.
Levante pressed Atletico
early and was rewarded
when Papakouly Diops cor-
ner kick hit Atletico left back
Filipe Luis in the chest. The
ball bounced out of reach of
scrambling goalkeeper Thi-
baut Courtois before settling
into the net in the seventh.
Atletico improved after
bringing on substitutes Arda
Turan and Adrian Lopez af-
ter half-time but conceded
again when striker David
Barral beat Courtois in the
69th.
Far from bemoaning the
setback, Simeone said de-
feat was the best thing that
could happen to his team to
keep it focused on the run-in
not only to the league title
but also to the Champions
League nal with Madrid
on May 24, a week after the
league concludes.
Three weeks of high in-
tensity and emotion await
us, Simeone said. This is
the ideal moment for my
men, for my players. We have
three nals ahead of us and
we have to concentrate on
the rst of those against Mal-
aga next Sunday.
Four days after its com-
manding 3-1 victory at Chel-
sea to reach the nal of the
Champions League, Atletico
was brought down by the
modest Levante side that has
outperformed expectations
thanks to coach Joaquin Ca-
parros defensive focus and
Keylor Navass goalkeeping.
We didnt want to mess
up a title for anyone, I hope
they (Atletico) win it, Barral
said. We want to nish the
league in the best fashion.
The match was marred
at the nish by a group of
Atletico fans who directed
racist jeers at Diop. The play-
er from Senegal responded
by doing a dance. He later
called for an end to such rac-
ist displays.
Valencia arrived to the
Bernabeu after its demoral-
ising exit from the Europa
League seminals when it
conceded an injury-time
goal to Sevilla on Thursday.
Continued From P56
Juventus secure title, Milan end wait for derby win
anks, with three out of An-
drea Pirlo, Claudio Marchisio,
Paul Pogba and Arturo Vidal
forming a uid triangle in the
middle.
The only big change this
season has been in attack
where the xed Carlos Tevez-
Fernando Llorente partnership
has replaced the previous sea-
sons chopping and changing.
However, with Pirlo past his
35th birthday and Conte deter-
mined to avoid complacency,
the club may be tempted to
shake up the team, especially
if they want European success.
The biggest question mark
hangs over the future of 21-
year-old midelder Pogba,
who has blossomed since
joining two seasons ago from
Manchester United, where he
failed to make the team.
Although Juventus have
identied him as a potential
successor to Pirlo, some of
Europes biggest clubs have
also shown interest and there
has been speculation that Real
Madrid and Paris St Germain
would both be prepared to pay
up to 70 million euros ($97.06
million) for the Frenchman.
TRANSFER TARGETS
Juventus might nd that
sort of money too good to re-
sist, although general manager
Giuseppe Marotta insisted on
Sunday that Pogba would be
staying.
Its unthinkable that he
would leave, Marotta told Sky
Sport Italia. Paul is intelligent
and knows that he has the
chance to improve here.
Well sit down calmly with
Conte next week, he added.
Were proud of our coach, one
of the best in the world. Hes
part of Juventus patrimony.
Europe, however, has been
a different story. Having gone
out to Bayern Munich in the
Champions League last sea-
son, Juventus then fell in the
group stage this term and were
beaten in the Europa League
semi-nals by Benca.
Conte said that it would
need some old-fashioned Ital-
ian cunning rather than big
spending to improve on that
record.
Its not easy for us to ac-
quire players who cost 30 mil-
lion euros or even 15 million,
he said. But nobody is ever
happy to play an Italian team
in Europe. Our teams are stub-
born, in spite of the difcult -
nancial times. Reuters
JUVES SCUDETTO
Atletico, Barca and Madrid drop points
MILAN
Juventus, winners of a third
successive Serie A title on Sun-
day, must now decide whether
the formula which has given
them a rm grip on Italian
football will keep working
for another season and make
an impact in the Champions
League.
With second-place Roma
losing 4-1 at Catania, Juventus
eight-point lead became in-
surmountable because Roma
only has two matches remain-
ing. Also, AC Milan got a 65th-
minute goal from Netherlands
midelder Nigel de Jong to
beat Inter Milan 1-0 in the city
derby and stay in the hunt for
a Europa League spot.
Juventus have been re-
markably stable during the last
three years. Gianluigi Buffon
has been almost ever-present
in goal with defenders Andrea
Barzagli, Leonardo Bonucci
and Giorgio Chiellini nearly
always forming the three-man
defence.
The mideld has invariably
featured Switzerlands Steph-
an Lichtsteiner and Ghanas
Kwadwo Asamoah on the
Juventus supporters cheer
their team in a past UEFA
Europa League clash against
Benca on May 1 in Turin. Juve
won the Scudetto on Sunday.
[PHOTO: AFP]
ITALIANSERIEA
SPANISHLALIGA
EUROPEAN STANDINGS
ENGLISH PREMIER LEAGUE
P W D L F A GD PTS
Man City 36 25 5 6 96 37 +59 80
Liverpool 36 25 5 6 96 46 +50 80
Chelsea 37 24 7 6 69 26 +43 79
Arsenal 37 23 7 7 66 41 +25 76
Everton 37 20 9 8 59 39 +20 69
Tottenham 37 20 6 11 52 51 +1 66
Man United 36 18 6 12 60 41 +19 60
Southampton 37 15 10 12 53 45 +8 55
Newcastle 37 15 4 18 42 57 -15 49
Stoke City 37 12 11 14 43 51 -8 47
Crystal Palace 36 13 4 19 28 43 -15 43
West Ham 37 11 7 19 40 49 -9 40
Swansea City 37 10 9 18 51 53 -2 39
Aston Villa 36 10 8 18 39 54 -15 38
Hull City 36 10 7 19 37 48 -11 37
West Brom 36 7 15 14 42 55 -13 36
Sunderland 36 9 8 19 38 57 -19 35
Norwich City 37 8 9 20 28 60 -32 33
Fulham 37 9 4 24 38 83 -45 31
Cardiff City 37 7 9 21 31 72 -41 30
Atletico Madrid 36 28 4 4 75 24 +51 88
Barcelona 36 27 4 5 99 32 +67 85
Real Madrid 35 26 5 4 100 34 +66 83
Athletic Club 36 20 8 8 65 38 +27 68
Sevilla 36 17 9 10 66 50 +16 60
Real Sociedad 35 16 9 10 59 51 +8 57
Villarreal 36 15 8 13 54 43 +11 53
Valencia 36 12 10 14 49 50 -1 46
Celta de Vigo 36 13 7 16 46 52 -6 46
Levante 36 11 12 13 33 42 -9 45
Rayo Vallecano 36 13 4 19 45 74 -29 43
Espanyol 36 11 8 17 39 47 -8 41
Malaga 36 11 8 17 37 45 -8 41
Elche 36 9 12 15 29 47 -18 39
Granada 35 11 4 20 30 53 -23 37
Almeria 36 10 6 20 41 71 -30 36
Getafe 36 9 9 18 32 53 -21 36
Osasuna 36 9 8 19 29 60 -31 35
Real Valladolid 35 7 14 14 34 54 -20 35
Real Betis 36 5 7 24 31 73 -42 22
Juventus 35 30 3 2 75 23 +52 93
Roma 36 26 7 3 72 23 +49 85
Napoli 35 20 9 6 64 36 +28 69
Fiorentina 35 18 7 10 59 38 +21 61
Inter Milan 36 14 15 7 57 36 +21 57
Torino 36 15 10 11 55 45 +10 55
Parma 36 14 12 10 55 45 +10 54
AC Milan 36 15 9 12 54 46 +8 54
Lazio 35 14 10 11 49 47 +2 52
Hellas Verona 35 16 4 15 56 58 -2 52
Atalanta 35 14 5 16 40 47 -7 47
Sampdoria 36 12 8 16 43 54 -11 44
Udinese 36 12 6 18 41 52 -11 42
Genoa 36 10 11 15 38 46 -8 41
Cagliari 35 9 12 14 34 46 -12 39
Chievo 36 8 6 22 31 53 -22 30
Bologna 36 5 14 17 27 55 -28 29
Sassuolo 35 7 7 21 34 65 -31 28
Catania 36 6 8 22 30 64 -34 26
Livorno 36 6 7 23 39 74 -35 25
PSG 35 25 8 2 76 20 +56 83
Monaco 35 22 9 4 59 28 +31 75
Lille 36 19 11 6 41 22 +19 68
Saint-tienne 36 18 9 9 50 32 +18 63
Lyon 36 16 10 10 55 43 +12 58
Marseille 36 15 11 10 51 39 +12 56
Bordeaux 36 13 12 11 47 41 +6 51
Reims 36 12 12 12 42 47 -5 48
Lorient 36 12 10 14 46 49 -3 46
Toulouse 36 11 13 12 43 50 -7 46
Nantes 36 12 9 15 37 40 -3 45
Bastia 36 12 9 15 40 56 -16 45
Montpellier 36 8 18 10 45 47 -2 42
Nice 36 12 6 18 30 41 -11 42
Rennes 35 9 13 13 41 41 +0 40
Guingamp 35 10 8 17 31 40 -9 38
Evian TG 36 9 11 16 34 51 -17 38
Sochaux 36 9 10 17 35 57 -22 37
Valenciennes 36 7 8 21 35 60 -25 29
Ajaccio 36 3 11 22 34 68 -34 20
Bayern 33 28 3 2 93 23 +70 87
Dortmund 33 21 5 7 76 38 +38 68
Schalke 04 33 18 7 8 59 42 +17 61
Leverkusen 33 18 4 11 58 40 +18 58
Wolfsburg 33 17 6 10 60 49 +11 57
Borussia Mgla 33 16 7 10 58 40 +18 55
Mainz 05 33 15 5 13 49 52 -3 50
Augsburg 33 14 7 12 45 46 -1 49
Hoffenheim 33 10 11 12 69 69 +0 41
Hertha BSC 33 11 8 14 40 44 -4 41
Hannover 96 33 11 6 16 43 57 -14 39
Werder Bremen 33 10 9 14 41 64 -23 39
Eintracht Fran 33 9 9 15 39 55 -16 36
Freiburg 33 9 9 15 41 58 -17 36
Stuttgart 33 8 8 17 49 61 -12 32
Hamburger SV 33 7 6 20 49 72 -23 27
Nurnberg 33 5 11 17 36 66 -30 26
Eintracht Brau 33 6 7 20 28 57 -29 25
GERMANBUNDESLIGA
FRENCHLIGUE1
FEVERPITCH / Page 55 Tuesday, May 6, 2014 / The Standard
Timothy Kiptoo celebrates winning a past cross-country race at
Uhuru Gardens. [PHOTO:FILE/STANDARD]
Sevens rugby team lose 26-5
to England in World Series
By BS MULAVI
The national rugby team
jumped up two spots to sev-
enth position in the Interna-
tional Rugby Board (IRB) World
Series after collecting twelve
points at the Glasgow Sevens
in Scotland.
Kenya lost to England 26-5
in the Plate nals but they will
be happy that they slightly
improved from their previous
performances.
This is the highest number
of points that South African
Paul Treu has attained since
taking over as the head coach
and he will be hoping extend
this form to the next round in
London this weekend.
By virtue of having nished
as the losing Plate nalists,
Kenya has been pooled in an-
other tough group comprising
Canada, USA and Samoa in
their title hunt in London.
Canada had a much im-
proved performance in Scot-
land where they beat Kenya in
the quarternals and went on
to the Main Cup nals where
they lost to New Zealand.
IMPROVE RANKING
This performance has seen
Canada jump to sixth position
in the overall standings with 82
points, which is 10 more than
what Kenya has on 72.
The clash between the two
sides is likely to have a direct
impact on who will top the
group in London and qualify
for the Main Cup quarter-
nals.
Samoa on the other hand
have had an inconsistent sea-
son so far. However, they are
still ranked one place below
Kenya with 69 points. Samoa
will give Kenya a tough time in
the tournament and Treu and
his troops will have to be at
their best to beat them.
Kenyas only perceived sim-
ple match will be against USA,
who are having a torrid sea-
son and are currently ranked
13th in the standings with 38
points.
ERRATIC FORM
However this does not
mean they will be an easy team
to beat, as they have shown
their sparks at different tour-
naments, and they can easily
prove to be resurgent in the -
nal tournament of the season.
Treus target for the season
was to gain the consistency in
team performances and to im-
prove on display of the game.
Last season, under English-
man Mike Friday, the team
nished the World Series with
99 points and in fourth place.
This means even if Kenya win
the London leg and get all the
22 points on offer, they will still
come short of the benchmark
achieved last season.
Meanwhile New Zealand
beat Canada 54-7 in the nal of
the Glasgow Sevens to win their
fourth Cup title of the 2013/14
HSBC Sevens World Series.
Scott Curry and Ben Lam
scored two tries each as Gor-
don Tietjens side were ruth-
less in victory against a Canada
side playing in their rst-ever
Cup nal.
The win leaves New Zea-
land 19 points ahead of sec-
ond-place South Africa in the
Series standings, and on course
to win a 12th title in 15 years.
Their coach will be hoping that
they can extend this form to
the next round in London.
brian.sagala@gmail.com
By ERICK OCHIENG
Africa Cross Country
bronze champion Timothy
Kiptoo was beaten to second
place in the Nairobi Inter Sta-
tions Kenya Prisons Athletics
Championships held at Nai-
robi West Prison grounds at
the weekend.
Kiptoo, running for Pris-
ons Staff Training College
(PSTC), could not display the
same form that saw him break
a seven-year 5000m Kenya
Prisons record last year when
he clocked 14:40.00 to nish
behind Kamitis Jonathan Ko-
sgei in 14:28.07.
Kiptoo, the 2011/12 KCB
Cross Country jackpot win-
ner, said the loss was a wake-
up call for him ahead of the
national championships and
that he needs to step up his
performance.
Nairobi West Prison put
a brave show to top in the
teams category. The Nairobi
West Prison warders, who
suffered a setback when their
houses got burnt down a week
ago, put up a spirited ght to
clinch the contests overall
title with 312 points.
The Ofcer in Charge of
Nairobi West Prison James
Mureithi said it was hard to
assemble a team when the
warders were traumatised by
loss of their valuable posses-
sions in the inferno.
Nairobi West amassed
11 gold, nine silver and ve
bronze medals to carry the
day ahead of Kamiti with
eight gold, six silver and nine
bronze medals.
Nairobi Command com-
pleted the last podium nish
with 280 points from six gold,
seven silver and 13 bronze.
Peter Mwangi, Harry Lan-
gat and Cecilia Maria emerged
tops, each securing two titles
in the one-day event.
In long jump, Langat of
Nairobi Command improved
his personal best by leaping to
6.62 metres to better his pre-
vious 5.34m in the mens cate-
gory which was a warning sig-
nal to Kenya Prisons national
champion Tera Langat.
Langats teammate Wel-
lington Nyakundi also im-
proved his personal best by
managing 6.53 metres to be
placed second and improve
his former mark of 5.34m,
which he attained last year.
Langat bagged his second
gold in mens triple jump by
managing 14.63 metres ahead
of teammates Duncan Push-
enee (14.00m) and Josephat
Oyunge (12.92m) for Nairobi
Commands clean sweep.
Maria of Nairobi Com-
bined clocked 4:43.03 to se-
cure the womens 1,500m title
before going ahead to win the
800m race at 2:17.9. Nairobi
Wests Peter Mwangi won in
in shot-put with a 10.53m
throw and hurled the discus
26.35 metres away.
KENYA LOSE PLATE FINAL
Kosgei stuns Kiptoo to win Prisons Inter Station race
Fijis Waisea Nacuquin in action during
the Glasgow Sevens pool match against
Kenya, part of the IRB Sevens World
Series, at Scotstoun Stadium in
Glasgow, Scotland. [PHOTO:AFP]
FEVERPITCH
Tuesday, May 6, 2014
STANDARD
THE
www.standardmedia.co.ke
Coach Mabwi names Kwanthanzes Lowen to Africa Youth Games team, P.51
Kenya lose to England in Plate nal at Glasgow Sevens, P.55
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On Muy 22, Tuskef wefe uI home uguInsI Gof Mu-
hIu, buI InsIeud oI pIuyIng Ihe hxIufe In NuIfobI, de-
cIded Io Iuke Ihe muIch Io MumIus Io uvoId Ihe In-
IImIduIIng 'Gfeen Afmy` us Ihey hunIed Iof muxImum
poInIs Ifom Ihe muIch.
The pIoI dId noI wofk, us Ihe 'Gfeen Afmy` some-
how Iound IIs wuy InIo Ihe MumIus CompIex In u
muIch IhuI ended In u buffen dfuw.
ThIs IIme, Ihe bfewefs huve no opIIon us Ihey
come Iuce-Io-Iuce wIIh Ihe ufmy us Ihe Iwo sIdes
meeI In mIdweek Ieugue cIush uI Nyuyo SIudIum Io-
moffow evenIng.
The hxIufe Is cfucIuI Iof boIh sIdes, whIch seek Io
keep up Ihe chuse on Ieudefs Bungefs.
Gof MuhIu skIppef JefIm Onyungo hud no kInd
Saturday 8arcede
Suuday 8arcede
Saturday 8arcede
Suuday 8arcede
Download free QR Readers from
the web and scan this QR (Quick
Response) code with your smart
phone for pictures, videos and
more stories.
LA LIGA
QUEST
TIGHTENS
Real Madrids forward Cristiano
Ronaldo (right) vies with Valen-
cias defender Joao Pereira during
their Spanish league match at the
Santiago Bernabeu stadium in
Madrid on Sunday. [PHOTO: AFP]
BARCELONA
Atletico Madrid and Real Madrid both slipped
up in the Spanish league on Sunday to tighten a
compelling title race even further.
Atleticos march toward its rst title since 1996 hit
a bump when it lost 2-0 at Levante, although its city ri-
val failed to make up much ground as Madrid needed
a spectacular injury-time equaliser from Cristiano Ron-
aldo to salvage a 2-2 draw at home against Valencia.
Barcelona had written off its title defense after draw-
ing 2-2 with Getafe on Saturday, but its rivals stumbles
have put it right back in the hunt.
Barcelona trails Atletico by three points, while Ma-
drid was left ve points behind with an extra game to
play after Ronaldo deftly used the sole of his right boot
to turn in a cross in the 92nd minute.
It was a tough round for all three at the top and the
league is more wide open than ever, said Madrid coach
Carlo Ancelotti. I always said it would come down to the
last game.
Atletico lose, Real
Madrid draw as
race gets tough
CONTINUED ON PAGE 54
Why Kenya must pay Anglo
Leasing debt PAGE 13
SPECIAL REPORT:
Driving growth: Battle
to x an economy
stuck in neutral
PAGES 89
Watch money grow with tree
tomatoes PAGE 10
Want to spur growth? Pay
your debts PAGE 6
PAGES 45
Analysts raise concerns over assault on salaries
as Government deductions increase, leaving
hard-pressed workers with little to live on
SHRINKING PAYSLIPS
Tuesday, May 6, 2014 / The Standard
2
By MARGARET KANINI
Humphrey Muturi, 39, is the new director
of business banking at Barclays Bank
Kenya. Before this posting, he worked
at Standard Chartered Bank as general
manager, SME banking.
How do you describe yourself?
I am very passionate about empowering
business people especially small and
medium enterprises and family businesses
and walking with them on their journey
to prosperity and growth.
What is your job about?
My primary responsibility is to drive the
business banking agenda at Barclays Bank
Kenya. This means I eat, sleep and think
about companies that want a boost to grow.
While doing my job, I am guided by
the perspective of having customers
understand and nd solutions to their
needs. I help customers keep their most
critical clients, identify their business edge
and capture it for prosperity.
There are other banks that target the
segment you do. What differentiates you
from them?
We have managed to place Barclays as
a trusted nancier that helps clients grow.
We have created a relationship-managed
model, which is what most businesses want
to help them bridge the gap between where
they are today and where they aspire to be
tomorrow.
Most international banks have almost
a similar segment, but we have tried to
add value to our product. Our segment
is entirely driven by the customer. For
instance, we sit with clients who want to
expand their businesses and come up with
bank products that meet this need.
We also nance export and import trade
for clients. To this end, we offer them
letters of credit that are sent to suppliers
in whichever country they are based since
any document from Barclays Bank is well
recognised internationally. We also offer
bill avalisation, invoice discounting and
eet nancing, among other products.
What informed the decision to launch
business banking at Barclays?
This is a segment that can boost
Kenyas economy greatly. SMEs contribute
approximately 70 per cent to Kenyas
economy, so we must include them in our
everyday decision making and running of
organisations.
Business environment literacy is critical
to the growth of any organisation. Do
you offer training on this?
I will also say that nancial literacy is
critical to the growth of any organisation.
We have a business club that is
exclusively for Barclays Bank members
or clients. Through this club, we train our
clients on the hard and soft skills they need
to manage their businesses.
Club members are also exposed to the
external market as the bank organises trips
to different countries, which exposes them
to how their fellow SMEs and entrepreneurs
are conducting business.
Our members also get to share personal
experiences and offer each other solutions.
What are the major challenges in this
market segment?
One of the major challenges is nancial
illiteracy. When most businesses start
off, they look at the opportunities while
avoiding the risks. We, therefore, help our
clients develop positive jaws, so that they
can work with costs, but ensure these do
not exceed revenue.
About 90 per cent of Kenyan business
people or entrepreneurs are not aware that
their costs could be growing faster than
their revenues but this does not mean the
business should be shut down.
We also have challenges of not being
able to quickly process security for our
customers and offer faster lending.
Any new products in the pipeline?
We have two main initiatives that we
plan to launch. The rst one is to start
offering our nancial support to farmers
agriculture has been left lagging for a long
time. The second is to nance commercial
property development from end to end.
We shall sit with both developers and their
clients to see what they need most and help
them acquire it.
We are also going to enhance our digital
systems so that local customers can access
their accounts from any country with a
Barclays Bank.
bizbeat@standardmedia.co.ke
Business Beat
2
Tuesday, May 6, 2014 / The Standard
The true entrepreneur is a doer,
not a dreamer,
Unknown
Published by: The Standard Group Ltd; Group Managing Editor Print: Kipkoech Tanui; Deputy Managing Editor Daily Editions: Peter Okongo; Production Editor: Richard Kerama; Business Editor: Hussein Mohamed; Weekend Business
Editor: Jevans Nyabiage; Supplements Editor: Julius Mokaya; Senior Sub-Editor: Kagure Gacheche; Sub-Editors: Andrew Watila, John Oyuke; Writers: Jevans Nyabiage, James Anyanzwa, Lillian Kiarie, Macharia Kamau, Jackson Okoth,
Nicholas Waitathu, Frankline Sunday; Manager Print Creative: Dan Weloba; Creative Designer: Alex Ireri; Photography: Standard Team; Facebook: Biz Beat; E-mail: bizbeat@standardmedia.co.ke; Website: http://www.standardmedia.
co.ke All correspondence to Business Beat is assumed to be intended for publication. Business Beat accepts no responsibility for unsolicited manuscripts, artworks or photographs. All rights on publication remain with the
publisher.
>> CORPORATE FOCUS
CorporateInterview
In accordance with the Communications Commis-
sion of Kenyas Mobile Termination Rates (MTR) glide
path, the next reduction phase is set for July 2014.
From this date, mobile phone operators will begin
paying Sh0.99 for call terminations, down from the
current Sh1.15, which was set last year. According to
CCK, Safaricom accounts for 77.5 per cent of voice
trafc, meaning it terminates most of the calls.
The lower rate is expected to make penetration
slightly easier for the newly registered Mobile Virtual
Network Operators (MVNOs) who will pay Safaricom
less to terminate calls, which means they could po-
tentially offer competitive voice rates.
According to the Kenya National Bureau of Statis-
tics, overall ination for April increased to 6.41 per
cent, year on year. The rise was mainly driven by an
increase in the costs of food and transport. The food
and non-alcoholic drinks index rose by 1.66 per cent
as a result of the prices of more food items recording
increases compared to those whose prices dipped.
The transport index increased by 3.62 per cent on
the back of higher costs of petrol and bus fare. The
housing, water, electricity, gas and other fuels index
went up by 0.33 per cent due to higher costs of cook-
ing fuels, but electricity costs decreased (-0.48 per
cent) on account of forex charges dropping.
Sh0.99 6.41%
Cost of call terminations
from July.
Ination rate in April.
Barclays Banks Humphrey Muturi.
[PHOTO: WILBERFORCE OKWIRI/STANDARD]
A NUMBER OF recent books
have lauded the connection
between walking just for its own
sake and thinking. But are
people losing their love of the
purposeless walk? Walking is a
luxury in urban areas. Very few
people are obliged to do much of
it at all. Cars, motorcycles, buses
and trains all beckon.
Instead, walking for any
distance is usually a planned
leisure activity. Or a health aid.
Something to help people lose
weight. Or keep their tness. But
theres something else people
get from choosing to walk. A
place to think. And it is a
particular kind of walking; not
the distance between your house
and the kiosk, but a more
aimless pursuit. A Stanford
University study has also shown
that walking on a treadmill
improves creative thinking.
There is something about the
pace of walking and the pace of
thinking that goes together.
Walking requires a certain
amount of attention, but it
leaves great parts of the time
open to thinking. I do believe
once you get the blood owing
through the brain it does start
working more creatively. Your
senses are sharpened, says
Geoff Nicholson, author of The
Lost Art of Walking.
Im far more likely to nd a
solution by going for a walk than
sitting at my desk and
thinking. BBC
In brief: Need to get your creative
juices owing? Take aimless walks
NumbersoftheWeek
New credit rating model
ropes in informal sector
ASSESSING RISK:
Wider net: System to enable small
businesses get loans from banks
institutions, contribute tax revenue
By JAMES ANYANZWA
P
lans are underway for
informal and unorganised
businesses to secure credit
from formal nancial institu-
tions such as commercial banks.
This follows the development
of a credit rating system for the
business units.
Mr Sam Omukoko, the
managing director of Metropol
Credit Reference Bureau (CRB),
said the rating system seeks to
help small businesses, most of
which are unregistered and lack
proper accounting records,
secure credit from formal institu-
FINANCIAL ACCESS <<
This credit rating system is intended to
empower SMEs to enable them borrow
from commercial banks,
SamOmukoko
Tuesday, May 6, 2014 / The Standard
3
Business Beat
tions, as well as reduce inci-
dences of tax evasion.
We have developed a credit
rating system to identify the risks
of small businesses. This is
necessary because if you have a
good rating, commercial banks
will not ask you for collateral and
may reduce their interest rates
and appraisal fees, Mr Omu-
koko said.
This programme is going to
change the way business is done
in the country in addition to
bringing the cost of doing
business down.
Omukoko said 80 small
businesses in Nairobi have
equipment.
SMEs are also viewed as
insecure and costly businesses to
deal with because they often lack
the required collateral or
capacity to absorb large amounts
of money from nancial rms.
But the Government has
identied micro, small and
medium enterprises (MSMEs) as
one of the key drivers of Vision
2030. Therefore, the sector is
expected to play an effective role
as an engine for economic
growth, poverty eradication and
unemployment creation, and is
crucial in meeting projected
development objectives.
janyanzwa@standardmedia.co.ke
already been rated. The target is
to reach 500,000 businesses by
December.
Among the businesses being
targeted are unregistered
businesses, registered businesses
whose owners do not keep
accounting records, and
registered businesses with some
makeshift form of bookkeeping.
Others include businesses
that are registered but whose
proprietors keep unaudited
books of accounts, and those
that are registered and keep
audited books of accounts.
This credit rating system is
intended to empower SMEs to
enable them borrow from
commercial banks, Omukoko
said.
Among the institutions that
have embraced the system, he
said, are Equity Bank, Kenya
Commercial Bank and Century
Micronance Bank.
Once rated, small businesses
can borrow between Sh10,000
and Sh500,000, depending on
their size, at competitive rates.
There are about 7.5 million
SMEs in Kenya and the sectors
contribution to Gross Domestic
Product stands at about 40 per
cent. It also provides about 80
per cent of the total employment
in the country and contributes
more than 92 per cent of new
jobs created every year.
However, a large number of
SMEs lack creditworthiness and
management capacity, so they
have trouble securing funds for
their business activities, which
include procuring raw materials
and products, and investing in
We
have
developed
a credit
rating
system to
identify
the risks
of small
business-
es.
Business Beat
Tuesday, May 6, 2014 / The Standard
4
By JACKSON OKOTH
and MACHARIA KAMAU
I
ntense lobbying saw
employers get their way on
Labour Day after the
Government declined to
increase the minimum wage.
The salary increment has in
recent years been given on this
day set aside to celebrate work-
ers. Last year, it was increased
by 14 per cent.
But Labour Cabinet
Secretary Kazungu Kambi
made it clear last Thursday
that there would be no
addition to employees payslips
just yet.
The trouble is that this
particular document is likely to
shrink further from June 1.
This is when the State
pension outt, National Social
Security Fund (NSSF), imple-
ments new deductions.
The deductions will
increase contributions to NSSF
from a at rate of Sh200 to
Sh1,080 per month for those
earning Sh18,000 and or more.
And more in this case
could mean Sh100,000 or
Sh500,000, which means the
new rates will put more
pressure on low-income
earners than on department
heads or top management.
INCREASED CONTRIBUTIONS
But it is not only NSSF that
is planning on raiding the
payslip.
The National Hospital
Insurance Fund (NHIF),
another statutory body, has
been planning to increase its
member contributions for
some time now.
NHIF said it is currently
sorting out the issues that have
stood in its way including
court cases and workers
could begin
contrib-
uting
as
much Sh2,000 per month to
the fund by the end of this
year.
And then there are the
unions that represent workers
in various sectors of the
economy that are asking for
more contributions from their
members.
Further, the Kenya Revenue
Authority (KRA) in addition
to its pay as you earn (PAYE)
deduction has widened its
tax net to include withholding
tax on all bonus and dividend
payments made to company
employees and members of
savings and credit societies.
But it is not just the
ordinary Kenyan that is feeling
the impact of the numerous
deductions.
Last week, Homa
Bay MP Peter
Kaluma disclosed
that his Sh899,025
salary as a
parliamentarian is
entirely taken up by
loan repayments, PAYE,
sacco contributions, upkeep
costs and other deductions.
Mr John Mwaniki, the
chief executive of Securities
Market Consultants Limited,
said that while the NSSF
deduction of Sh1,080 might
seem a small amount for
top-tier employees, it would be
WAGE EROSION:
Central Organisation of Trade Unions (Cotu) Secretary General Francis Atwoli, left, hugs Labour Cabinet Secretary Kazungu Kambi during
Labour Day celebrations in Nairobi. Cotu has sought court orders to stop an increase in some statutory deductions. [PHOTO: FILE/STANDARD]
Workers face new raid on shrinking
>> LABOUR
The ideal payslip should only have the statutory
deductions that include NSSF and NHIF.
However, a typical payslip has other deductions
that include loan repayments, JohnMwaniki
a heavy addition not only for
low-income employees, but
also some middle-level staff.
The ideal payslip should
only have the statutory
deductions that include NSSF
and NHIF. However, a typical
payslip has other deductions
that include loan repayments,
Sacco contributions and
Higher Education Loans Board
(HELB) repayments, he said.
Thus, the revision on NSSF
rates will have a direct effect
on peoples payslips and the
effect varies across the divide.
The new rates raise the
deductible amount by between
80 per cent on the lower
category and 440 per cent on
the upper category. This will
signicantly affect personal
expenditure lists and we expect
behavioural change on
disposable income.
He noted that in the face of
mounting pressure on the
payslip, salaried workers would
need to adjust their nances to
avoid a situation where they
might be forced to pawn off
personal belongings or borrow
from loan sharks to help them
remain nancially aoat.
One of the best nancial
re-engineering tools involves
debt restructuring, which is
tailor-made to suit ones debt
load.
It is possible to restructure
some of the deductions, like a
bank loan, without much
strain. This includes reschedul-
ing the loans by increasing the
repayment period on outstand-
ing loan balances. One can also
reduce their shares in the
Sacco with an equivalent
increase in NSSF contribu-
tions, said Mr Mwaniki.
PULLED IN ALL DIRECTIONS
But for people like Dennis,
27 and single, nancial advice
often goes right over his head.
I have absolutely no way of
improving the state of my
nances if I did, Id have
gured it out by now, he said.
He works for what he calls a
large company, so he asked
that his surname not be used
for fear of victimisation.
My relatives, church
pastors and former classmates
know where I work and believe
Im doing well. And with
schools opening this week, Im
getting calls from people
asking for assistance to pay
their childrens fees, but I am
barely earning enough to
sustain myself. Im being
pulled in all directions.
Would he consider moving
to cheaper accommodation to
lower his expenses?
I cant. Theres my social
status to consider. I cannot just
live anywhere given where I
work. Besides, it would require
that I move further away from
my ofce, so my transport
costs would increase, said
Dennis.
There are economists who
argue that increasing wages
would make the situation
easier for people in Denniss
situation.
The entire country benets
when more people have more
money to spend. Business
begins to look up as consump-
tion increases, and we have
less people struggling to stay
aoat, said Mr Joab Some.
But then there are those
who criticise this argument,
saying wage increments
weaken the economy.
If you increase the price of
something, then you decrease
the demand for it. What we
need to focus on is increasing
the skills of low-income
earners, said Mr Ron Kenda.
The Federation of Kenyan
Employers (FKE) has also said
increments to workers pay
should be pegged on their
productivity and prevailing
market forces, not just the cost
of living.
The demand for better pay
will always be there, but we
have to see how to manage
Burdened employees:
The Government declined
to increase minimum
wages on Labour Day, a
month before new pension
deductions take effect
Business Beat
5
Tuesday, May 6, 2014 / The Standard
MARKET VALUE:
LABOUR <<
The case by Cotu [against NHIF
increments] is still in court, but we are
consulting with a view to having them
withdraw the case, SimeonKirgotty
minimum wage. We have to
ensure that increases in
minimum wages do not take us
back, said FKE Executive
Director Jacqueline Mugo.
Ms Wanjiku Mwangi, a
mother of two, also agrees with
Mr Kendas economics.
I stopped hiring a full-time
househelp in January when I
learnt about the requirement
to pay them a minimum
Sh9,200, in addition to paying
their NSSF contributions.
Where would I get that kind of
money? Frankly, I nd it unfair
since I would be housing and
feeding them. But rather than
run into trouble with the law
like Ive seen a friend do, Ive
opted to just get someone to
come to my house twice a
week. I pay her Sh500 a day,
she said.
Im lucky my kids, aged
nine and 12, get home at
around 6pm and are respon-
sible, so I can afford to do this.
I also run my own business. If
they dont nd me home, they
know to go to our neighbours
house until I get home. So far,
its working well.
But for people who only rely
on their wages to make ends
meet, the slightest additional
deduction is jarring.
For instance, under the
proposed NHIF rates, the
lowest-paid employee earning
Sh6,000 will contribute Sh150,
while those earning upwards of
Sh100,000 will part with
Sh2,000 a month.
But remember that after
taxes and the current NHIF
and NSSF deductions of Sh320
and Sh200, respectively,
someone earning Sh100,000 a
month will take home less than
Sh70,000.
COPE WITH EXPENSES
And with their middle class
status, they are likely to face
the so-called middle class
problems like exorbitant rent,
parking fees, high costs of fuel
and entertainment expenses.
Their lifestyles leave little for
savings, if any, let alone the
space for an additional Sh2,000
The nal part of Nokias sale to
Microsoft is nalising the payoff to its
former chief executive, Stephen Elop.
He has received $33.5 million (Sh2.5
billion), which is 30 per cent higher
than thought due to the link to the
companys stock that has risen since
the sale was announced.
As for that share price, Nokia was
once worth $150 billion (Sh13 trillion)
only seven years ago, but has now
been sold for just $7 billion (Sh608.3
billion). How did all of this market
value disappear?
The idea of creative destruction
was popularised by Joseph Schumpeter
in his 1942 book, Capitalism, Socialism
and Democracy. He described how the
economy underwent long cycles as new
technologies were adopted, while at
the same time existing technologies
were made obsolescent and replaced.
The transition from old to new was
rarely seamless and led to the rise and
fall of not just individual businesses
but entire industries.
For Nokia, it was the culmination of
a rapid rise and fall. It introduced its
rst handheld mobile phone in 1987
and by 1998 had overtaken Motorola to
become the global market leader in
handset sales. In 2005 it sold its one
billionth phone. Its peak was probably
in 2007. By then, its share of the global
handset market had reached 40 per
cent, including nearly half the
smartphone market at the time, with
its market capitalisation hitting Sh13
trillion.
Last year, its global market share
had fallen to just 15 per cent and this
was mainly accounted for by its range
of cheaper phones. Its share of the
global smartphone market was just 3
per cent.
So in the last few years, Nokia has
seen billion of dollars evaporate. How?
Back in 2007, Steve Jobs walked
onto the stage at the Moscone Center
in San Francisco, pulled an iPhone out
from his pocket and talked of a
revolutionary product that would
change everything. The rest is history.
Apples take off, along with Googles
Android system, has mirrored the
decline at Nokia.
So where did Nokia go wrong? Was
it just the latest victim of creative
destruction in the digital age?
In January 2012, after more than
130 years of history, Kodak led for
bankruptcy. It had once sold more than
90 per cent of all lm in the US and its
little yellow boxes could be seen all
around the world. Although it was
coming under increasing pressure from
Japans Fujilm, the death of the
company was simply because they
were out-innovated in the technology
they had pioneered for over a century.
Ironically, Kodak had developed a
prototype for the digital camera in
1975. But by the time they realised it
was a game changer, it was too late.
Cannon and Fuji had already estab-
lished a decisive lead in the digital
camera market.
Kodak is not an atypical story. A
large incumbent company, successful
for decades, nds it difcult to adapt
to new technologies while it makes
good prots in the traditional business
areas. They are then left adrift once
the whole industry has shifted for
good. The lesson is adapt or die.
Is this also true of Nokia?
Nokia was innovative in hardware
and was the dominant force at the
outset of the smartphone market.
However, Apple, and then Android, saw
the value of software. Perhaps Nokia
showed a lack of urgency.
In the high technology era, consum-
ers expect constant innovation and are
quick to punish the products that fall
behind. The pace of creative destruc-
tion has quickened and brands are no
longer as resilient as they once were.
BBC
Nokia, Apple and creative destruction
deduction.
Im dreading the NSSF fee.
Being deducted an additional
Sh2,000 a month will com-
pletely throw off my already
tight budget, said Dennis.
Ive actually been applying
for new jobs to cope with my
expenses; I cant survive on my
companys brand. Students in
my former school are saying
they want to be like me, but
knowing the reality of my
nancial situation, I dont
want to be like me.
The new NSSF rates are
intended to help workers save
payslips
It is
possible
to restruc-
ture some
of the de-
ductions,
like a bank
loan, with-
out much
strain.
an amount for their retirement
that would assist them start a
business or live off of without
burdening the society.
The new NHIF rates are to
enable the fund foot in-patient
and out-patient hospital bills,
as well as cover complex
medical procedures, such as
dialysis, for its member. As it is
currently, it only pays in-
patient costs, and even then, to
a certain limit.
The outcome of a court case
involving NHIF and the Central
Organisation of Trade Unions
(Cotu) appears to be the only
obstacle in the way of the
increments.
While they may take a while
to implement, the higher
contributions to NHIF are
imminent. The State-owned
medical insurer said it is
currently negotiating with
Cotu.
The case by Cotu is still in
court, but we are consulting
with a view to having them
withdraw the case. We have a
meeting with them this
month, said NHIF Chief
Executive Simeon Kirgotty.
HOUSEHOLD OBLIGATIONS
The deductions on the
payslip aside, Kenyans have
also had to contend with a rise
in cost of living, a situation
made worse by the Value
Added Tax (VAT) Act that
imposed a 16 per cent levy on
essential goods and services,
making it more difcult to
meet household obligations.
And last month, the cost of
a basket of goods and services
increased by 6.41 per cent,
which means Sh100 now buys
a smaller quantity of items
than it did in March.
County governments have
also introduced levies, fees and
charges to meet their scal
obligations, but these have
increased the prices of goods
as traders transfer the new
costs to consumers.
Clearly, increased levies
like property rates and
business licences have had an
impact on ones spending
power. And as counties seek to
collect revenue, there is a
danger that more will have to
be paid by individuals, said
Mr Nikhil Hira, a tax partner at
Deloitte East Africa.
The current wave of
insecurity is also impacting on
individuals, as one needs to
pay more for security. It could
also have an impact on
insurance premiums.
bizbeat@standardmedia.co.ke
Business Beat
Tuesday, May 6, 2014 / The Standard
OPINIONS <<
[Indirect costs of staff turnover include] the
cost of lost knowledge, skills and contacts
that the person who is leaving is taking with
them out your door, Margaret Kioko
6
W
e have blamed terrorism,
corruption and poor
attitudes for low levels of
economic activity and, therefore,
joblessness. But there is another
soft cause rarely talked about
but equally serious: failure to pay
debts.
A friend of mine recently told
me that if you borrow Sh10,000
from him, he will give you
Sh1,000 free rather than lend you
money he will never get back.
Talk to most Kenyans and they
will complain about a debt that
was never paid or one they
never paid back in the hope that
the lender would forget. No
wonder they ask in most funerals
if the deceased had a debt.
If all my debts were paid,
some dating back 20 years, I
could upgrade from a Vitz to
something that would help me
make a statement.
Economists dene Gross
Domestic Product (GDP) as
money in circulation multiplied
by velocity. This is where the drag
on the economy comes through
debts.
If people do not pay their
debts, money does not circulate
(velocity reduces) and this
reduces the GDP. The same way
reduced velocity on the road
makes you cover less distance
with the possibility of having to
pay for lodging if you do not
reach your destination.
We normally do not keep
money in our pockets, we spend
it creating demand for goods and
services, and by extension, jobs.
For example, when you go
shopping, you give jobs to
manufacturers, distributors,
cashiers and others along the
supply chain. Even when you take
your money to the bank, it is not
stored in vaults; its lent out, more
debts .
ECONOMIC CONSEQUENCES
Yet, paying debt is not part of
our culture. In fact, debt collec-
tion has created lots of jobs!
Landlords have to close houses to
get rent, auctioneers are also
doing very well. It is also
suspected that lots of unex-
plained murders may result from
debts, another cost to the
economy.
The Government has also
joined in debt management with
the licensing of credit reference
bureaus (CRBs), which keep track
of your ability to pay debts. The
argument is that if you pay your
debts regularly, you are more
creditworthy, and if you go
borrowing money from nancial
institutions, you can get it at a
lower interest rate. This is
intended to incentivise debt
payment.
Banks, too, worry about debts,
captured by non-performing
loans, and even provide for them
in their accounts. They go to great
lengths to get your background
information to gauge if you will
pay your debt. CRBs are making
their work easier. When you do
not pay your debts, you deny
other people a chance to put that
money into circulation and grow
the economy and create jobs.
Incidentally, the Government
is very good at paying debts
defaulting can have serious
economic consequences. There is
even a whole section at Central
Bank that deal with debts. Many
governments, including in
developed countries, cannot run
without debts.
Some have argued that
remnants of our traditional
culture have made debt payment
very hard. We want to be helped
and see debt as help. Lots of
people, including the well
educated, are dishonest. But
paradoxically, our traditional
cultures put a premium on
honesty.
The more plausible explana-
tion is that there isnt a big
enough penalty for not paying
your debts.
For those aspiring for big jobs,
now the penalty is big, but for the
vast majority who refuse to pay
little money and are not in debt
registers, they can get away with
it. There are also not many people
who have gone to jail for not
paying debts, at least in Kenya.
It is also possible that despite
high literacy rates, we still do not
understand how a modern
economy operates.
MUTUALLY BENEFICIAL
Debts are not bad because
there shall always be people or
governments with surplus money
and some with decits. Through
banks or even shylocks, the two
groups mutually benet from
each other by keeping the money
circulating and growing econo-
mies and creating jobs. Non-
payment of debt breaks this cycle
and slows the economy.
Imagine what happens if you
do not pay your Mama Mbogas
debts, who may have another
persons debt .
In the next one month, lots of
discussions on the Budget will
make the headlines. We shall keep
discussing who will get more
money and who loses. In this
formal discussion, we forget soft
issues that matter, like debt
payment.
We could estimate that if
Kenyans paid their debts on time,
we could add around 3 per to
GDP growth and easily reach the
targeted 10 per cent growth rate
needed to make Kenya a middle
income economy (without
rebasing).
If we paid our debts on time,
we would go a long way towards
making the economy more
vibrant and reduce the number of
unhappy people owed lots of
money and create lots of jobs.
If you owe someone a debt
(including dowry), please pay
(wewe ripa), you will have played
your small but important role in
turning round the reluctant wheel
of progress. You could help in
making Kenya the Swahili Tiger.
The writer is a senior lecturer at
University of Nairobis School of
Business.
xniraki@gmail.com
Results from Deloittes Best
Company To Work For survey has
shown that one of the key reasons
employees voluntarily leave an
organisation is not the company or
the work, but the immediate
manager.
This places accountability for
employee retention rmly in the
hands of the managers in our
organisations.
Understanding why employees
stay with an organisation is just as
important as grasping why they
choose to leave.
SEASONED EMPLOYEE
Few human resource professionals
know that the cost of replacing one
employee equals one to three times
their annual salary and total benets,
plus the additional cost of lost
revenue that the seasoned employee
would likely have generated.
But that is not all.
Tougher to measure are the
hidden costs associated with staff
turnover, which most companies do
not calculate.
Firms fail to calculate the hidden,
indirect opportunity costs that impact
both directly and indirectly on the
bottom line.
What are the costs you should be
factoring in to determine the real cost
of employee turnover to your
organisation?
Direct costs to ll a vacant
position include sourcing costs,
advertising, rsum screening,
interviews, background checks and
assessments costs. Then there is the
on-boarding and orientation costs,
training costs, and the cost to
temporarily cover an employees
duties, such as overtime for other
staff or temporary stafng wages.
Indirect costs include conducting
the exit interview and the administra-
tion cost to process a resigning
employee. There is also the cost of
lost knowledge, skills and contacts
that the person leaving is taking with
them out your door.
An employer should also worry
about the cost of the managers time
in understanding the work that
remains and how to cover it until a
replacement is found; the cost of the
hiring managers time; and the
reduced productivity of the staff/
team who are covering a vacant
position.
The rm also has to bear the cost
of losing customers that the employee
is going to take with them, or the
amount it will cost you to retain the
customers of a salesperson or
customer service representative who
leaves.
DECREASED CUSTOMER SATISFACTION
After an employee leaves, there
will be decreased customer satisfac-
tion and errors. A new employee has
to be trained, hence there will be low
productivity for a while the
experienced workers will be over-
taxed to cover for the new employee.
How should employers deal with
this?
It is important for them to shift
the paradigm of viewing employees
as a cost.
Employees are in fact an appreci-
ating asset the longer they stay
with an organisation the more
valuable they become over time
they learn the systems, products,
services and how to work optimally
within the organisation to deliver the
desired business results.
Research shows companies that
effectively appreciate employee value
enjoy a return on equity and assets
more than triple that experienced by
rms that do not.
When looking at Fortunes 100
Best Companies to Work For, stock
prices rose an average of 14 per cent
per year from 1998 to 2005 for these
rms, compared to 6 per cent for the
overall market.
The Deloitte survey, which was
launched last month, will explain
what employees value, whether or
not employers are meeting these
expectations, and some of the key
drivers of staff retention.
Employers that persist in viewing
employees as a cost are creating
their own barriers to realising a
return on their most important assets
their employees.
The writer is a human capital
consultant with Deloitte East
Africa. The views expressed here
are the writers.
bizbeat@standardmedia.co.ke
Have an opinion to share on business
issues? bizbeat@standardmedia.co.ke
Want to spur growth and
create jobs? Pay your debts
ECONOMICINSIGHT
with XNIRAKI
MARGARETKIOKO
The real cost of high staff turnover to your organisation
Some
have ar-
gued that
remnants
of our tra-
ditional
culture
have made
debt pay-
ment very
hard. We
want to be
helped and
see debt as
help.
Business Beat
7
Tuesday, May 6, 2014 / The Standard
Business Beat
Tuesday, May 6, 2014 / The Standard
8
By JAMES ANYANZWA
and MACHARIA KAMAU
T
aking economic growth
as the base, everything
that could have gone
wrong during Uhuru Kenyattas
rst year as President did just
that.
His Jubilee Administration
faces a delicate balancing act
in its bid to grow a stagnating
economy, control the balloon-
ing public sector wage bill,
reach out to the poor and
vulnerable, and deliver on
pre-election promises that
could determine the likelihood
of winning a second term in
ofce.
But with several economic
engines virtually knocked out,
Kenya has been running on
one motor the last three years
the so-called emerging
sector, which envelopes mobile
money transfer services,
mining and Internet activity.
However, even the motor for
these high-growth sectors is
slowing.
The economy grew by a
modest 4.7 per cent against
analysts projections of
between 5 and 5.5 per cent,
and the Governments forecast
of 6 per cent.
And as the Government eyes
double-digit growth, it is
emerging that the sectors
expected to drive the economy
to middle-income status by
2030 may not do so, calling for
a major policy shift.
ECONOMIC PILLAR
The economic pillar for the
Governments long-term
development plan was crafted
to improve the prosperity of all
Kenyans by achieving and
maintaining a sustained
economic growth rate of at
least 10 per cent from 2012.
However, in October last
year, the double-digit growth
target date was revised to 2017.
This is contained in the
second Medium Term Plan
(MTP) that covers the 2013-
2017 period.
But the economys lacklus-
tre performance is raising
concerns over whether this
dream is tenable in the near
term.
The economy grew by 4.6
per cent in 2012, and 4.7 per
cent in 2013. The National
Treasury projects a growth rate
of 5.8 per cent this year and
seven per cent by 2017.
However, at the current
pace of growth 0.1 per cent
per year and if all things
remain constant, the country
will achieve 10 per cent growth
in 2057.
First, I dont think we are
on track with Vision 2030, but I
think we have the time to get
on track. We are not spending
enough to develop the country.
Our recurrent expenditure is
still too high, said Mr Nikhil
Hira, a tax partner at Deloitte
East Africa.
I rmly believe that the
economy can pick up in a big
way if we put the right policies
in place.
Rising incidences of
insecurity, increased costs of
living, growing public debt and
a fragile economy appear to be
the Governments biggest
headaches.
In the rst Medium Term
Plan (2008-2012), former
President Mwai Kibakis regime
identied six priority sectors
that contribute more than 50
per cent of the total value of
the products and services
Kenya produces in a year,
otherwise known as its Gross
Domestic Product (GDP).
These sectors also account
for nearly half of the countrys
total formal employment.
They were agriculture,
manufacturing, tourism,
wholesale and retail trade,
IT-enabled services, and
nancial services.
But a closer look at these
critical sectors shows they have
not performed to expectations,
and may require key policy
interventions to turn them
around.
AGRICULTURE
The performance of the
agricultural sector, which
contributes about 23 per cent
of the countrys GDP, declined
last year.
Poor rainfall and unfavour-
able international prices for
key export crops dampened the
sectors growth to 2.9 per cent
in 2013, against growth of 3.8
per cent in 2012.
But according to the
Governments Economic Survey
ECONOMIC PERFORMANCE:
>> SPECIAL REPORT
I dont think we are on track with Vision 2030, but
I think we have the time to get on track. We are not
spending enough to develop the country,
Nikhil Hira
2014, the credit extended to the
sector from commercial banks
expanded by 3.9 per cent in
2013 from 7.4 per cent in 2012.
The overall value of
marketed production slowed to
Sh344.61 billion from Sh334.73
billion, partly due to depressed
production of certain major
crops like maize, beans, coffee,
cut owers and fruits.
The sector was, however,
Double-digit dream: Kenya was
expected to grow by at least 10 per
cent from 2012, but key sectors still
performing below expectations
Driving growth: Uhuru battles to x a virtually stagnant economy
agriculture, and offers signi-
cant opportunities for export
expansion.
It accounted for 8.9 per cent
of GDP and provided 12.4 per
cent of the jobs created in the
formal sector in 2013.
The industry is among the
few performers, growing 4.8
per cent in 2013 compared to
3.2 per cent the previous year.
But analysts note that
manufacturing can grow by
larger margins if basics, such as
cheaper electricity and good
infrastructure, are put in place.
According to economists at
the Kenya Institute for Public
Policy Analysis and Research
(Kippra), the sectors below-par
performance is a result of
drought, high costs of produc-
tion and credit, and competi-
tion from imported goods.
Its contribution to GDP
declined to 9.2 per cent in 2012
from 9.6 per cent in 2011, and
its contribution to total wage
employment has gradually
0.1%
The increase in economic
growth in 2013 from the
previous years 4.6 per cent.
boosted by increased produc-
tion of tea, wheat, vegetables,
potatoes and sugarcane on
account of the good prices paid
to farmers last year.
In the horticulture sub-
sector, the value of marketed
fresh produce declined by 7.9
per cent last year as a result of
low export volumes and
depressed unit prices in the
international market. Failed
rains this year could make
things worse.
MANUFACTURING
The sector has high
potential for employment
creation, is a stimulus for
growth of other sectors such as
worsened to 12.9 per cent in
2012 from 13.9 per cent in
2008.
Kippra notes that the cost of
doing business is a major
concern for manufacturing
rms in developing countries,
and has dominated policy
debates due to its adverse
consequences on investments
and protability.
In their Kenya Economic
Report 2013, the institute
pointed out that the inux of
counterfeits and volatility in
international oil prices also
affects the sectors perfor-
mance.
Manufacturing in Kenya is
predominantly agro-based, but
in newly industrialised
countries, food manufacturing
constitutes a small share, with
the manufacture of chemicals,
electronics and machinery
constituting over 40 per cent of
the total value added.
According to analysts,
revitalising the sector requires
policy incentives geared
towards high-value manufac-
turing, inter-rm linkages and
enhanced foreign direct
investments (FDI).
TOURISM
The story of the tourism
sector reads like that of
athletes at the top of their
game who are set back by an
injury and their chances of
recovery get worse and worse
the longer they are benched.
The industry has suffered
major setbacks in recent years,
each leaving it weaker.
Last year was no an
exception and the sectors
performance declined.
The number of international
With two engines
virtually knocked out,
Kenyas economy has been
running on one motor in
the last three years, and
Business Beat
9
Tuesday, May 6, 2014 / The Standard
SPECIAL REPORT <<
The cost of doing business is a major
concern for manufacturing rms in
developing countries, and has dominated
policy debates, Kippra
visitors decreased by 11.2 per
cent from 1.71 million in 2012
to 1.51 million in 2013.
Sector earnings fell by 2.1
per cent from Sh96 billion in
2012 to Sh94 billion in 2013.
Further, the hotel bed-
nights utilisation rate declined
by 3.9 per cent, compared to a
decline of 2.2 per cent in 2012.
The drop in occupancy rate is
particularly attributed to a
decline in tourists arriving
from traditional source
countries in Europe for hotels
at the Coast.
According to the Govern-
ment, visitor arrivals declined
in the third quarter of last year
due to a re accident that
damaged the international
arrivals lounge at the Jomo
Kenyatta International Airport
(JKIA) in August.
Other factors that contrib-
uted to the drop include the
increasing number of insecu-
rity incidences and sluggish
economic growth in tourist
source markets.
The sectors performance
fell below medium-term
targets, underscoring the need
for the Government to imple-
ment strategies to reverse its
dwindling fortunes.
These include increased
goods it produces.
The trade balance also
deteriorated by 6.3 per cent in
2013 mainly on account of a
reduction in domestic exports.
ICT
The communications arm of
the sector grew by 6.2 per cent
in 2013, but this was lower than
the 8.6 per cent increase it
registered in 2012.
The general industry was,
however, on the rise, with the
number of mobile connections
and Internet subscriptions
increasing.
The number of mobile
connections rose from 30.4
million in 2012 to 31.2 million
in 2013, while Internet
subscriptions rose from 8.5
million in 2012 to 13.3 million
in 2013.
The amount of money
transacted through mobile
money transfer services also
grew from Sh672 billion in June
2012 to Sh914 billion as at June
2013.
FINANCIAL SERVICES
The sector generally
performed well last year, with
activity at the Nairobi Securi-
ties Exchange (NSE) increasing.
The benchmark NSE
20-Share Index went up 19.2
per cent to 4,927 points from
4,133 points in 2012. The total
number of shares traded
Driving growth: Uhuru battles to x a virtually stagnant economy
investment in infrastructure,
improved security, implemen-
tation of Vision 2030 agship
projects like resort cities, and
continued diversication of
source markets.
TRADE
Wholesale and retail trade
form the largest component of
domestic trade and provide
opportunities for employment.
The sector has played an
important role in the growth
and development of the
economy.
However, according to
ofcial data, Kenyas total
exports declined by 3 per cent
from Sh517.8 billion in 2012 to
Sh502 billion in 2013.
Total imports increased by
2.8 per cent from Sh1.37 trillion
in 2012 to Sh1.41 trillion in
2013.
This has led to the export-
import ratio deteriorating from
37.7 per cent in 2012 to 35.5
per cent in 2013, which
generally means the country is
paying more for imported
items that it is receiving for
By NICHOLAS WAITATHU
It is unlikely that the Government will be able to rely on tradi-
tional sources to increase revenue collection from Sh973 billion
to Sh1.2 trillion to fund the 2014/15 Budget.
Instead, tough measures will be required to widen the tax
base as well as crack down on tax defaulters.
National Treasury Cabinet Secretary Henry Rotich said the
Government intends to increase total revenue collection to
Sh1.18 trillion in the next nancial year to fund a record Sh1.8
trillion Budget.
But the economic climate has not always been conducive to
the Governments targets. The high cost of doing business has
seen some investors skirt Kenya in favour of neighbouring
countries, and the political climate and emerging threat of
terrorism have made matters worse.
In 2012/13, a volatile political environment and non-passage
of the controversial Value Added Tax (VAT) Bill saw the Kenya
Revenue Authority fail to meet revenue collection targets.
According to data from the taxman, Sh800.4 billion was
collected against a target of Sh881.2 billion.
The Government is further challenged by system weaknesses
that lead to the loss of at least 30 per cent of its annual Budget.
Dr Thomas Kibua, a senior economist at the African Develop-
ment and Economic Consultants, has noted that the Govern-
ment loses funds to inated consultancy fees and public
procurement deals.
Tax leakages have denied the country a lot of revenue as the
taxman has not intensied efforts to crack down on defaulters.
Equally, the country loses a colossal amount of money every
year due to corruption in Government, added Mr Kareithi
Murimi, a tax analyst.
KRA has also been facing difculties collecting revenue from
some sectors due to a lack of data. For instance, in the property
market, rental income collection has remained depressed as
there is not enough information on the identity of landlords and
the rent they charge.
And with economic growth increasing at a near glacial pace,
going up just 0.1 per cent last year from 4.6 per cent in 2012, it
may be particularly difcult for the Government to achieve its
highest ever revenue target this coming nancial year.
However, Mr Rotich last week said KRA would fast track a raft
of measures to expand the revenue base and eliminate tax
leakages. The modernisation of VAT legislation is also expected
to simplify tax collection and enhance revenue yield.
The country will also need to enhance accountability and
maximise State agencies absorption capacity to avoid the
wastage of funds, said Samuel Nyandemo, a senior economics
lecturer at the University of Nairobi.
nwaitathu@standardmedia.co.ke
The headache in
boosting revenue
to Sh1.2 trillion
Kenya Revenue Authority Commissioner General
John Njiraini.
increased by 38.7 per cent to
7.6 billion from 5.5 billion over
a similar period.
Shareholders wealth, which
is measured by market
capitalisation, increased 51 per
cent to Sh1.92 trillion from
Sh1.27 trillion in 2012.
Further, the assets of the
insurance sector grew by 18.4
per cent to Sh358 billion in
2013.
The general insurance
business increased 10.6 per
cent to Sh129 billion, while
assets of the life insurance
business grew 24.1 per cent to
Sh195.9 billion.
According to the Economic
Survey 2014, liabilities of the
entire insurance industry
amounted to Sh259.8 billion,
representing a 14.2 per cent
growth from 2012.
Gross premiums in the
sub-sector also increased last
year, going up 20.6 per cent to
Sh131 billion from Sh108.6
billion the previous year.
bizbeat@standardmedia.co.ke
ROBERT
I would like to applaud Maryanne
for her enterprising nature. At 23, she
has made such great strides in wealth
creation. She is the kind of young
person more people should be
encouraged to emulate. Kudos for
highlighting her story.
JUNE
I have just read Maryannes story and
Im very inspired. I graduated from
campus last year and hold a degree in
communications, but Ive been unable to
get a job. Ive spent a lot of time in front
of the TV and in town with friends, but
her story has made me realise Im
wasting my prime years. I want to get
started in agriculture. Im sure I can
convince my parents to allow me to use a
small portion of their shamba to grow
something. Please send me her contacts
so that I can seek her advice on what
crops to grow, and which ones would
have the best market as I am quite
desperate to make money.
JOHN
Your edition last week had a lot of
wake-up calls. From XN Irakis letter to
the youth on job creation, to the two
young ladies you proled who are
making do with what they have rather
than relying on their education to get
white-collar jobs. I hope the youth of
Kenya are reading and paying
attention.
KINUTHIA
I have truly enjoyed the article on
creating wealth from seedlings. Kindly
assist me with Maryannes number. I
would like to know where she got that
Swedish soil she mentioned she
imported, plus the planting trays. Her
business idea sounds viable, and I, too,
know people desperately looking for
good quality seeds.
LUDO
Thank you for your inspirational
stories each week. I liked the story of
the lady involved in horticulture.
Please send me her contacts as I would
like to purchase some seedlings for a
greenhouse I have.
JABEZ
I would like to know how to build the
kind of greenhouse Maryanne said she
started with. Kindly help me get in touch
with her.
CAROL
I am a farmer in Kajiado County
and I also have seedlings for sale. How
can I nd a market for them? Please
send me Maryannes contacts as I
would like to discuss a partnership.
RODNEY
I have a greenhouse in Thika and Im
interested in starting another one purely
for seedlings. Kindly get me in touch with
Maryanne, Im interested in that special
soil from Sweden that she mentioned.
STELLA
Thank you for the very educative
stories you give us each week. They are
a good challenge and show us that
young people are thinking hard about
how to contribute to our economy. I
just pray that they get the necessary
support they need to continue
excelling at what they do.
WANJIKU
I enjoyed your wealth creation idea of
selling seedlings. I dont think people
appreciate the great potential in this
sector, I have experienced it rst hand
and encourage others to get involved.
Grow your money with tree tomato venture
By LILLIAN KIARIE
I
n a small village near
Limuru Town, there is a
garden that yields rich
juices and rened fruit salads.
Mr Benson Nyingi, who
owns the garden, is making a
good living selling blueberries,
strawberries, tree tomatoes and
sweet melons, exploiting a
market whose potential is still
unrealised.
The Ndenderu resident says
he left his former position as
horticulture manager after
disagreeing with his employer
on pay.
I was fully dedicated to the
job and did not picture myself
doing anything else. However,
when the need arose and I
asked for a raise, I got a
response that frustrated me
and I realised my growth
prospects in the company were
limited. If I was to make a
comfortable living, I had to be
brave and branch out, Mr
Nyingi says.
To give himself a safe
landing after quitting, he leased
an eighth of an acre in
Ndenderu. He started off
growing strawberries.
The strawberries ourished
and I started earning from the
farm. I was actually making
more than what I earned as a
manager.
I was able to rent another
eighth and started planting tree
tomatoes, mostly because they
are perennial, require little
attention and are high yield-
ing, he says.
Fuss free: The fruit is easy to grow,
thrives in most climates and is ready
for market eight months after planting
INVESTMENT IDEAS:
Nyingi planted the red oratia
variety after getting seedlings
from a farmer in his village. The
variety produces larger fruit
than most others.
I initially planted 150
seedlings each cost Sh125.
The loamy soil was good for the
tree tomatoes growth and I
was pleasantly surprised by the
produce.
His rst harvest raked in
three kilogrammes of tree
tomatoes from each plant. He
sold each kilo at Sh150.
I made about Sh55,000 with
minimal strain. This plant does
not require much work after
planting. I have made it a habit
to irrigate the plant with a 17kg
bucket of water every Wednes-
day, and I spray pesticides
occasionally, and thats it, he
says.
DECENT INCOME
Today, Nyingi has more than
350 plants and 5,000 seedlings
of the red oratia. When the fruit
is in season, he says he harvests
upwards of 600kgs of it, and it
has brought in a decent
income.
As an employee, I had to
rent a house in Limuru town
and even kept off having
children for fear of a higher
budget. But today, I own several
acres, Ive constructed a house
and my children attend good
schools.
Nyingi opted for the red
oratia variety because, unlike
the dwarf tree tomato, 97 per
cent of its yield is edible, and it
has a shelf lifespan of six
YOURFEEDBACK:
Send an email
to bizbeat@
standardmedia.
co.ke for contacts
or information
on the companies
behind the business
ideas we prole.
Business Beat
>> WEALTH CREATION
Tuesday, May 6, 2014 / The Standard
10
I made about Sh55,000 with minimal
strain. This plant does not require much
work after planting,
Benson Nyingi
months.
When it is very ripe and
squishy, you can store it for
another month without it going
bad. Farmers should be advised
not to sell tree tomatoes at
throwaway prices when they
get ripe as they can be sold to
individuals who make juice
from the fruit.
It is not difcult to get into
tree tomato farming.
The plant, also known as
tamarillo or matunda ya damu
in Kiswahili, is shallow rooted
and grows to a height of 3 to 5.5
metres. The fruits are long
stalked and grow in clusters of
three to 12. They are smooth
and egg-shaped, with their skin
colour ranging from orange or
yellow to deep purple and
blood red.
The plants grow in perme-
able soil and are not tolerant to
waterlogging. To retain soil
moisture, you can apply mulch,
which has the added advantage
of slowing the growth of weeds.
Soils with a pH of 5 to 8.5 are
the most favourable.
The fruit grows best in areas
with plenty of sunlight, but in
dry climates, you will need to
provide shade.
In areas with a lot of wind,
you may need to prop up the
plant when its laden with fruit
as it has shallow roots and
could easily be blown over.
The fruit can be grown from
cuttings or seeds. Cuttings give
you shorter plants that are
suitable for windy regions,
while seeds produce taller
trees.
A single tree can produce
more than 20 kilos of fruits a
year, if well taken care of.
Mr George Wambugu is
another farmer who has found
success with tree tomatoes.
Three years ago, he was a
small-time businessman selling
pharmaceuticals in Iringa,
Tanzania. His big break came
when he learnt about the fruit
and started growing the red
oratia variety in Kenya.
PEST RESISTANT
He started off planting his
tree tomato seedlings in a
quarter acre. To his surprise, he
had fruits ready for market
within eight months.
But instead of selling his
yield in kilos, he sold each fruit
at Sh10, raking in Sh200,000
from his plants.
With the proceeds, he set up
a tree nursery and expanded
his plantation.
Demand for the fruit has
grown, and he now gets
customers from as far aeld as
Mombasa, and sells his Kenya
Horticultural Crops Develop-
ment Authority-certied
seedlings at a minimum Sh50
each.
He says that the plants are
generally pest-resistant, but
may be occasionally attacked
by green aphids and fruit ies.
This can be prevented by
spraying pesticide.
For more information on the
companies proled here, email
bizbeat@standardmedia.co.ke
1
:HUSTLERS<<
Business Beat
:HUSTLERS<<
Tuesday, May 6, 2014 / The Standard
11
Our services are not standard; we provide
last-mile logistics into remote frontier
areas,
GreggSmith
BUSINESS STRATEGY <<
Why Africa? What informed
FSGs business strategy to
target the continent with its
logistics services?
Gregg Smith: There are a
number of reasons for investing
in Africa. While Africa and
African markets present
tremendous investment
opportunities for business in
different sectors, its current
infrastructure void presents
challenges to penetration in
many parts of the continent.
That void, however, offers
opportunity for companies with
expertise in integrated logistical
supply chain infrastructure that
supports access to markets by
opening up previously inacces-
sible areas to investment and
business.
Our Chinese partners doing
business in Africa approached
us wanting logistical and supply
chain support for their opera-
tions on the continent. Consid-
ering Africa is expected to
attract infrastructure investment
to the tune of $1 trillion (Sh87
trillion) over the next 10 years, it
makes sound business sense to
position our expertise in supply
chain logistics in alignment with
this growth potential.
Our goal of establishing a
broad-based logistics business
will require signicant invest-
ment beyond aviation.
We also expect to make
investments in maritime and
construction assets, among
others. Notably we intend on
making signicant investments
in local human resources in
terms of hiring, training and
deploying workers.
Our long-term vision is to
establish and support the
technical trades so that our
workforce is truly Kenyan.
Why Kijipwa and Phoenix
Aviation?
Kijipwa was appealing to FSG
due to its strategic position near
the Port of Mombasa, and the
legendary reputation of its
founder, Mr Alan Herd. Mr Herd
has been a leader in Kenyan
aircraft maintenance for
decades.
With respect to Phoenix
Aviation, the particular business
was appealing for a number of
reasons. First, Phoenix has an
incredibly talented team; FSG
believes its pilots, technicians
and management are world
class. Second, it is a large
operation capable of serving a
diverse customer base. Phoe-
nixs current eet is also well
suited to support a variety of
missions.
Finally, Phoenixs leadership
team shares FSGs vision of
building a much more robust
business, centred on the Kenyan
aviation sector, a business that
has the nancial capital to
invest and grow with the
increasing number of multina-
tional businesses moving into
East Africa.
In a previous interview with a
local newspaper, you were
insistent that FSG is not a
security contractor, but
extremely vague on what
exactly you mean by logistics.
What is the nature of the
logistics services you plan to
offer to the Government, NGOs,
and mining and construction
companies?
Overcoming the logistical
supply chain challenges in
Africa lack of road or rail
access to remote areas and a
difcult aviation environment
we bring tier-one aviation
logistical capability. We
transport people, supplies and
highly specialised equipment to
areas difcult to reach by any
other means.
Our services are not
standard; we provide last-mile
logistics into remote frontier
areas. We will leverage both our
aviation and construction to
enable and enhance access to
remote areas.
With aviation, through
non-scheduled passenger and
cargo, we will support United
Nations missions as well as
mining and exploration sites.
With our construction
expertise, we will build runways
and airstrips in remote areas as
well as roads and rail infrastruc-
ture from our landing sites to
camps that we support, be they
exploration, mining or UN
mission camps.
Where required, as part of
our last-mile logistics, we have
the capability to construct
camps to support these
operations.
What is the nature of FSGs
parent companys ties with the
state-owned Citic Group in
Hong Kong?
FSG is a publicly owned
company with shares traded on
the open market. While we do
not have a majority share-
holder, our two largest
shareholders are Citic Group
and Hong Kong-based entre-
preneur Johnson Ko, each
owning about 20 per cent
shareholding.
Citic Group and Johnson Ko
both have seats on our board.
Beyond that, like any public
company, we have very many
shareholders.
China is already the dominant
player in Africas mining and
construction sectors. Is FSGs
African strategy purely a
business ploy to tap into the
billions of dollars in Kenya
Government projects con-
tracted to Chinese companies,
given FSGs close ties with
Beijing/Hong Kong?
FSG is a pan-African
business that will be headquar-
tered in Kenya. Our intention
and our business plan call for
us to work throughout Africa,
and not just in Kenya. We hope
to have many customers and
we certainly hope the Chinese
companies are part of those.
However, we hope to work
with local and multinational
companies from anywhere in
the world, with the UN and
Why Hong Kong rm prefers Nairobi
as hub for its EA logistics business
Mr Gregg Smith, CEO of Frontier Services Group, sees
potential in Kenyas aviation industry due to the
high demand, lack of capacity, growth in the East
African Community and investment in the trading blocs
mining sector. The logistic services company recently
acquired 49 per cent of Kijipwa, a Kili-based, family-
owned aviation rm, and has major shareholding in
Phoenix Aviation. He spoke to Peter Okongo.
AVIATION SERVICES:
NGOs all making up our broad
customer base. We want to work
with any company that has
logistical and supply chain
requirements that would benet
from our last-mile services.
What informed FSGs decision
to base its East Africa ofces in
Nairobi?
We believe that Kenya has a
terric talent pool that we
intend to bring into the
business and develop because
our delivery model is based on
local expertise in all the
countries where we will do
business. The aviation infra-
structure in Kenya is suitable as
the hub of our operations, and
the regulatory environment is,
comparatively, conducive to
regulatory compliant foreign
investment.
FSG has a strategy to become
the premier provider of logistics
services in Africa. We believe
that the highest-value logistics
services start with aviation and
the best market to launch in is
Kenya, which is recognised as
an African aviation hub and is
certainly the gateway to East
Africa.
What will distinguish the
medical evacuation (medevac)
services FSG plans to offer
from what is already in the
Kenyan market and make it a
protable venture, given that
in Nairobi we already have
AAR, Kenya Red Cross and the
Flying Doctors Service?
The additional medevac
capacity, leveraging our
last-mile aviation and construc-
tion capability, penetrate closer
to the sites and frontier
environments where people are
working. We can position our
aircraft and doctors closer to
the sites, shortening the
emergency response time.
We believe that our
medevac offering will be
complementary to those
already present in the Kenyan
and other African markets.
In addition, we are looking
to offer an increased level of
care, given the nature of the
customers we will support. We
are considering airlifting
trauma surgeons into the site
when the nature of the
emergency makes patient
evacuation life threatening.
This will require specialised
aircraft that supports mobile
surgery units.
What is the initial sum that
FSG will invest in setting up
its operations in Nairobi?
As previously disclosed, our
initial investment will exceed
$30 million (Sh2.6 billion).
Can you put numbers to the
size of local and foreign staff
that will be operating in your
Nairobi ofces?
Our operating headquar-
ters will be in Kenya, and the
majority of our executives will
be in Nairobi. However, we
expect to have employees
throughout the country,
initially in Nairobi and
Mombasa.
At the onset, our employ-
ees will number in the
hundreds and we anticipate
this number to grow to the
thousands in three to ve
years. The majority of these
positions will be skilled
employees and we expect
those to be locals in Kenya and
in other African countries.
As our delivery model is
through developing local
expertise, we will have a 1:1
expatriate to local ratio in our
rst 12 months for skills
transfer and skills building.
bizbeat@standardmedia.co.ke
Our
Chinese
partners
doing
business in
Africa
approached
us wanting
logistical
and supply
chain
support for
their
operations
on the
continent.
Gregg
Smith
By PASCAL MWANDAMBO
As the rate of the countrys
population growth hits worrying
levels, the need for affordable
housing has never been more
pressing.
And with mortgages and home
prices out of the reach of the
majority, there has been a drive to
bring down the costs of construc-
tion by introducing affordable and
durable materials that would lower
costs.
Voi town in Taita Taveta County
has witnessed rapid growth in the
recent past and the growing
demand for affordable, quality
housing is one of the major
challenges the county government
is grappling with.
However, a local organisation has
been working around the clock to
produce housing materials that
promise to lower construction costs
by at least 30 per cent.
The Malewa Trust was started in
2004 as a community-based
organisation (CBO) to improve
environmental awareness in Voi and
its environs, as well as build the
youth and womens nancial
capacity.
According to the CBOs founder
and chairman, Mr Chris Campbell
Clause, one issue that was noted
with concern was that most makers
of housing blocks made their
materials stronger by heating them
in huge kilns that used wood.
ROASTING BLOCKS
We noted that roasting blocks in
kilns was destroying forest cover
and damaging the environment, so
we sought to come up with a more
innovative and environmentally
friendly approach, he told Business
Beat.
To do so, Malewa Trust ventured
into making interlocking blocks,
which are durable, affordable and
more reliable for local construction
demands.
The construction industry in Voi
is growing so rapidly that the need
for affordable construction
materials has never been more
apparent, said Mr Campbell, who
used to build shelters for refugees
at the Daadab camp.
If the demand for the organisa-
tions blocks is anything to go by, he
is right. The trust has employed 20
local youths who earn an average
Sh1,000 a day, which is higher than
the average payment rate for casual
labourers in the town.
Most of the construction blocks
in Voi come from Thika, which is
more than 300 kilometres away. By
going for the innovative interlocking
blocks, we wanted to ll the gap in
the construction industry in the
town by providing reliable and
affordable materials using what is
locally available, says Campbell.
AFFORDABLE
He says the trust has 30,000
blocks in Voi town and another
150,000 in Taita village in the
outskirts of Maungu township.
The blocks we have at the
moment are enough to put up about
20 two to three-bedroomed houses
in Voi town.
We are encouraging more youth
and women to join the trust to that
they can build their nancial
capacity through making and selling
blocks.
Each block is sold at Sh25, which
is cheaper than most other
construction materials.
bizbeat@standardmedia.co.ke
The Sh25 building blocks making home ownership a reality
REAL ESTATE:
Business Beat
Tuesday, May 6, 2014 / The Standard
12
We never thought groundnuts would give
us a steady ow of cash and be embraced
by the community,
Titus Obundu
>> ENTREPRENEURS
Farmers strike gold with
fast-growing groundnuts
By GRACE WEKESA
R
esidents of Khwisero
Constituency in Kaka-
mega County are
embracing groundnut farming
as sugarcane growing loses its
appeal.
The community has resorted
to growing groundnuts due to
poor yields from sugarcane,
high costs of inputs and low pay
received from millers.
Groundnuts, on the other
hand, are high yielding, disease
resistant, mature after six
months and certied seeds are
widely available.
FLOW OF CASH
Mr Titus Obundu, the
chairman of the Shirombe
Self-help Group, which grows
groundnuts, said of the crop:
We began the project two
years ago, and each day our
membership is growing. We
never thought groundnuts
would give us a steady ow of
cash and be embraced by the
community.
The group has more than
1,500 members. Those looking
to join them are required to pay
a Sh500 registration fee.
Quick uptake: Former sugarcane
growers nd a steady income by
making peanut butter from the crop
Malewa Trust
employees
with some of
the interlock-
ing blocks
they have
made. [PHOTO:
PASCAL
MWANDAMBO/
STANDARD]
Mr Obundu says they opted
for groundnuts because the
crop matures after a short time
and does not require much
labour.
The group plants the red
valencia variety of groundnuts.
Their idea, however, was to get
into value addition.
Therefore, after harvesting,
the nuts are dried, roasted,
ground and processed through
a machine to make peanut
butter. Salt is the only ingredi-
ent added, and a nearby factory
does the packaging.
Our farms are small and in
most cases our members lease
land from the community to
increase their harvest and
enable us produce enough
peanut butter for sale, Obundu
said.
They grind 100 kilos of nuts
a day for peanut butter.
A hundred kilos is still low
for us, but this is attributed to
the lack of enough land to grow
groundnuts on. We hope to
grind 1,000 kilos a day to meet
the market demand, which
keeps growing daily, said Ms
Agnes Amanya, the treasurer of
the group.
Shirombe makes between
livestock has increased in the
last six months, and we are
trying hard not to disappoint
our clients.
She said the groups biggest
challenge at the moment is
getting Kenya Bureau of
Standards (Kebs) certication.
She said the lack of the Kebs
label on peanut butter has
limited them to making sales
within Kakamega County and
in parts of Bungoma.
FIGHT POVERTY
The lack of Kebs certica-
tion is holding back our
expansion as we can only sell
the product in this region,
despite getting opportunities to
take it to other counties.
However, we are still engaging
Kebs on this, she said.
The group is hoping the
Kakamega County government
will support their project,
which they say has the poten-
tial to increase the countys
income, eradicate poverty and
VALUE ADDITION:
Sh6,000 and Sh8,000 on a good
day, with the higher range
achieved during exhibitions, on
market days and at the end of
the month.
They package the peanut
butter in 800 and 400-gramme
containers, which retail at
Sh250 and Sh150, respectively.
The Kenya Agriculture
Productivity Programme
(Kapap) is spearheading the
project and has provided
training for farmers on new
farming technologies and value
addition.
JOB OPPORTUNITIES
Mr James Libaako, the
Kapap co-ordinator for Butere,
said farmers in the Mumias/
Butere zones have taken up
groundnut farming with a lot of
zeal.
Many farmers in the area
have now resorted to growing
groundnuts because of their
immense benets, such as
resistance to disease and quick
maturity. We are working
closely with them to offer
advice and ensure they follow
the right channels from
planting to selling.
The crop has also provided
livestock feed.
The feed from groundnuts
increases milk and egg
production, Ms Fridah
Shikuku, a member of the
Shirombe group, insists.
As a result, demand for
groundnut leaves for feeding
create employment opportuni-
ties for the youth.
A lack of packaging materi-
als and storage and transport
facilities are among other
challenges the group faces.
They are forced to bring in
packaging containers through
middlemen in Nairobi as they
cannot access the materials
locally.
Our funds are limited and
the little we get is used to buy
materials and invest in the
project. We have to get our
packaging material from the
city, which at times delays our
getting the product to the
market, said Obundu.
The group plans to form a
co-operative society to help
them save and access loans to
expand their business and
empower members.
They also intend to start
leasing land from neighbouring
towns to increase the acreage
under groundnuts.
bizbeat@standardmedia.co.ke
:HUSTLERS<<
By JACKSON OKOTH
Fraud and Nigeria are often mentioned in the
same breath.
Tired of the increasing debit and credit card
fraud, the Central Bank Governor of Nigeria in
2009 decreed that all Nigerian banks replace
their customers Automated Teller Machine (ATM)
cards from an archaic and easily hacked
technology to one that was more secure.
The move helped lower incidences of ATM
fraud by more than 90 per cent by 2010,
according to Nigerias central bank.
In South Africa, credit card fraud reached
Sh36.5 billion in 2008, a 146 per cent increase
from the previous year, according to the South
African Banking Risk Information Centre. This
increase in fraudulent transactions also saw the
country begin to migrate to more secure cards in
2009.
Taking the cue from the Nigerians and South
Africans, the rest of Africa, including Kenya and
Rwanda, is shifting the security technology used
on ATM cards.
Kenyan banks are emulating their Nigerian and
South African brothers by replacing the use of
magnetic stripe technology in their ATM cards
with chip and pin technology.
The great migration should happen by the
end of this month. After this, any costs associ-
ated with fraud involving non-compliant cards
will be borne by the issuing bank.
The shift in Kenya is intended to reduce
fraudulent transactions, which were estimated to
have nearly tripled to Sh1.6 billion in the rst
nine months of last year, from Sh655.6 over the
same period in 2012.
Magnetic stripe technology, where a magnet
strip is placed at the back of a card with a users
information, has one major drawback: fraudsters
are able to copy the data stored on the card using
simple card-reading devices, and reproduce it.
The new chip and pin technology the countrys
banking sector is adopting relies on, like the
name suggests, a chip inserted in the card that
bears a users condential information. The chip
is heavily encrypted, making it much harder to
clone.
Further, it requires the use of a pin (personal
identication number) instead of a signature in
all instances, which improves transaction
security.
In France, the 2006 introduction of chip cards
reduced losses to card fraud from Sh2.1 billion to
Sh602.5 million. And since 2008, when migration
to the technology was completed, no card cloning
has been reported, according to Frances central
bank, Banque de France.
The technology Kenya is adopting will comply
with the EMV standard, which is also being used
by countries in Europe, Latin America and Asia.
EMV is a set of standards dened by Europay,
MasterCard and Visa, hence the acronym. But the
E in EMV does not exist anymore. Europay
merged with MasterCard International to form
13
Business Beat
:HUSTLERS<<
Tuesday, May 6, 2014 / The Standard
No one knows how this thing is going to
play out, but the Anglo Leasing ghosts and
their lawyers arent stupid and must have
closed obvious loopholes, MohamedWehliye
BANKING <<
EMV MIGRATION:
Why we must pay Anglo Leasing debt
companies or countries in the
secondary markets, and then
seek repayment of the full face
value together with interest,
penalties and legal costs.
If this repayment is not made
by the borrower, the creditor can
impound assets of the country
or company in an effort to force
repayment. They can turn a
bond purchased for ve cents
into a repayment of a full dollar,
a phenomenal return on
investment.
In the case of Argentina, the
vulture funds bought the
countrys debt cheaply when it
had an economic crisis and
speculated that the country
would go bankrupt. When it did
COMMENT:
MOHAMED
WEHLIYE
T
he Anglo Leasing-related
rms and the court
judgements they
obtained in the United
Kingdom and Switzerland
bring to mind the current court
battles between Argentina and
some American vulture
funds.
Vulture funds are funds
run by investors who purchase
cheap debt from distressed
and defaulted, they refused to
join the vast majority of
Argentinas creditors in agreeing
to reduce the amount they were
owed. The South American
country had reached an
agreement with most of its
private creditors to pay 30 cents
for every dollar owed under a
restructured debt deal.
NML Capital, a US hedge
fund that pioneered vulture
fund activity by winning a case
against Peru in the 1990s, sued
Argentina. It won a landmark
case last year in which a New
York court asked Argentina to
pay the full face value of the
bonds the rm held. Argentina
has refused to pay because if it
does so, it would have to pay all
the other creditors who
accepted the restructured deals
and moved on.
It has appealed to the US
Supreme Court and if it does not
succeed there, the country may
have to default once again to get
out of the current mess.
Of course the magnitude of
the problem we face with our
own Anglo Leasing vultures is
not as big, but the consequenc-
es, if we fail to pay them, will be
very real and equally painful.
No one knows how this
whole thing is going to play out,
but the Anglo Leasing ghosts
and their lawyers arent stupid
and must have closed all the
obvious loopholes. They are
denitely ready to attack.
As Cabinet Secretary Henry
Rotich and other Treasury
mandarins noted, the vultures
rst target will be the proposed
Eurobond the country plans to
issue in the next few months.
All governments need to fund
themselves, and Kenya is no
exception. But with these two
court orders hanging over its
neck, the Government could
nd it much more difcult to
sell its debt in the international
markets. And if it did, it would
denitely have to pay a pre-
mium given that it will have to
disclose the fact that there are
CONTINUED ON PAGE 15>>
CONTINUED ON PAGE 15>>
Kenyan banks join African
race to end ATM card fraud
H
ow much do you really
know about what is
happening in the minds
of your customers and clients?
How many decisions do you
make based on what people are
saying on social networking
sites, blogs and discussion
forums?
Many organisations in
Kenya are realising that the
traditional methods of data
gathering, storage, analysis and
reporting need to be redened
especially for customers who
increasingly express their
preferences and transact with
companies through interactive
channels.
Leveraging big data on these
interactions is a way to gain
deeper, meaningful insights
about customers and clients.
Big data is a technology
industry term that describes
data collection in large
quantities, complex and
difcult to process with regular
tools and applications.
Big data is rapidly expand-
ing, and is mostly generated by
Web 2.0 applications (social
networks, video-sharing sites,
blogs, discussion forums, etc),
and machine-generated data
from various devices connected
to the Internet, such as servers,
sensors, mobile devices and
cameras.
REAL-TIME DECISIONS
Big data is particularly
relevant for Kenyas nancial
services sector. Banks are
making real-time decisions
based on data provided by
mobile and Internet technolo-
gies, which are facilitating
tremendous customer base
growth.
Insurance companies are
keen to replicate this same
growth using mobile transac-
tion platforms.
They are not alone. Accord-
ing to PwCs Africa CEO Survey,
98 per cent of business leaders
in Africas nancial services
sector are looking for new ways
to increase customer demand
and loyalty.
Half of them see shifts in
consumer preferences and
behaviours as a serious
business threat; 77 per cent say
that users of social media
inuence their business
strategy.
Big data can be used to
How to squeeze more value
out of big data investments
BUSINESS INTELLIGENCE:
IN BRIEF:
SociBot: Robot that
knows how you feel
Capable of mimicking human expressions and
emotions, the SociBot is designed to bring a
human touch to teleconferencing or to imitate
your friends.
Its like having a real presence in the room,
says Nic Carey, research co-ordinator at Engi-
neered Arts, the company behind the device.
You simply upload a static photo of the face
you want it to mimic and our software does the
rest, animating the features down to subtle mouth
twitches and eyes that follow you around the
room.
The face of a disembodied colleague staring
out from a silvery helmet might not be what youd
expect at your average teleconference, but the
company thinks it could transform the way we
interact over long distances by simulating the
subtleties of human expression, recreating the
things that may be lost on a at screen when using
applications like Skype or FaceTime.
Designed to be gender and ethnically neutral,
the translucent mask is projected on from within,
the chosen face 3D-mapped on to its surface, and
speech perfectly lip-synched, while the head turns
and tilts as it talks.
The SociBot retails at Sh2.1 million.
3D: Forget bricks,
print your house
Architects in Amsterdam have started building
what they say is one of the worlds rst full-sized
3D-printed houses.
The structure is being built using a plastic
heavily based on plant oil. The plastic can be
sourced from recycled waste materials, such as
packaging materials. The team behind the house
claim it is a waste-free, eco-friendly way to design
and construct the cities of the future.
The pieces printed out will be slotted together.
It is expected to take years to complete.
It is expected that 3D will continue to
revolutionise the future. Already, a survivor of a
serious motorbike accident, Mr Stephen Power
from the UK, had pioneering surgery to recon-
struct his face using a series of 3D-printed parts.
Lawsuit: Samsung
to pay Apple Sh10b
Samsung has been ordered to pay $119.6
million (Sh10.4 billion) to Apple by a US court for
infringing two of its patents.
A jury in California delivered its verdict in a
federal court in San Jose on Friday in the latest
lawsuit involving the two tech giants.
Apple had sought $2 billion (Sh173.8 billion) at
the trial, accusing Samsung of violating patents
on smartphone features, including functions such
as the slide to unlock from its device.
The court also ruled that Apple infringed
Samsungs patents and awarded $158,000 (Sh13.7
million) in damages.
The verdict will probably come as a blow for
Apple, which portrayed Samsung as resorting to
the dark side of intentional copying.
The gure would appear to reect the jurys
belief that Apples settlement claim was unfairly
inated; Samsung argued all along that it should
be far lower, not least because some of the
patents were never even incorporated into the
iPhones software.
Samsung denied any wrongdoing and sought
$6 million (Sh521.4 million) after arguing Apple
had infringed two of its smartphone patents
related to camera use and video transmission.
Twitter: Firm tries
out mute feature
Twitter is trialling a feature in its mobile apps
that allows users to mute accounts that are
becoming irritating.
Unlike the block function, which is designed to
stop communications with an undesirable user
completely, muting is intended to be temporary.
It will mean users can block out people who,
for example, live tweet football matches every
weekend, or post about TV talent shows.
Many third-party Twitter apps have offered a
mute option for some time.
According to technology news site The Verge,
selected users running Twitters Apple iOS and
Google Android apps reported seeing the feature
appear.
The Verge described muting as a stealth
unfollow, ideal for ignoring work colleagues.
Twitter has not commented specically on its
plans for rolling out the mute feature.
But in a blog post about experimentation,
the company explained: You may see some
features that your friend doesnt see, or
vice-versa. This is all in service of making Twitter
the best it can be. We appreciate your help in
doing that, so thank you.
Compiled from agencies
leverage information about
demand, preferences, transac-
tions, social media and more to
inform decision making.
It is time for nancial
services organisations in Kenya
to start using the vast volumes
of consumer information in
their data centres and in
cyberspace.
Proling and targeting new
customers based on spending,
investing and online habits,
while targeting existing
customers to cross-sell, will
provide a competitive edge.
Organisations may struggle
to set up their data warehouse/
business intelligence systems to
improve the quality of manage-
ment decisions. Even if they get
it right, they may only have a
partial view of their systems
possibilities, unless they can
mine data for deep insight on
customers.
That insight is derived from
buying preferences and social
media behaviour, and informa-
tion from location-tagging
technology. Knowing who your
customers are, what they want,
and how and where they want it
leads to better and faster
decision making.
Organisations want infor-
mation that reveals how
individuals are using products
and services they buy to deliver
more personal, higher quality
experiences. Never underesti-
mate what a surprise gift or spa
voucher may achieve with your
top customer or target!
Knowing what internal and
external data to collect, how to
analyse and interpret it, and
feeding this insight into your
management or board meetings
might be the edge you need to
design your next successful
product or ground-breaking
sales strategy.
POSSIBLE RISKS
Even as organisations
explore the possibilities of
using big data, they must focus
on possible risks, such as
privacy. Organisations leverag-
ing the power of big data must
understand the legal implica-
tions and requirements of
information gathering and seek
permissions from governments
and individuals.
Information security is also
a concern; organisations must
properly dene who has access
to data.
Ownership and control of
data, cyber security, data
integrity, large volumes of data,
hardware reliability, speed of
assessing data and regulatory
compliance are other common
issues to keep on the radar.
Experts in data mining and
associated skills can help rms
explore this new frontier.
Kenyas nancial services
sector is setting the pace in East
Africa and beyond by leverag-
ing technology to provide
avenues for business growth
and deeper customer engage-
ment. Big data allows organisa-
tions of all kinds to see ahead
and differentiate themselves in
the marketplace.
The writer is a manager with
PwC Kenyas Risk Assurance
Services practice and an IT risk
assurance specialist.
bizbeat@standardmedia.co.ke
TIMOTHYOKAFOR
Business Beat
Tuesday, May 6, 2014 / The Standard
14
Knowing who your customers are, what
they want, and how and where they want
it leads to better and faster decision
making, Timothy Okafor
TECHSPHERE <<
Tuesday, May 6, 2014 / The Standard
Business Beat
15
We cannot afford to be left behind because a
weak system here is a threat to the entire
global nancial system,
Habil Olaka
>> BANKING
African banks rush to shut
the door on data thieves
We must pay Anglo Leasing debt
EMV MIGRATION: COMMENT:
<<CONTINUED FROM PAGE 13
MasterCard Worldwide. The EMV
standards are now controlled by a
not-for-prot-company called EMVCo,
which is jointly owned by MasterCard,
Visa, American Express, JCB and China
Union Pay.
We cannot afford to be left behind
because a weak system here is a threat to
the entire global nancial system, said
Mr Habil Olaka, the chief executive of the
Kenya Bankers Association (KBA).
We are proud that Kenya is currently
one of the few countries in Africa that
have adopted the EMV compliance
standard, placing the country at par with
other leading countries in enhancing
fraud mitigation systems. By meeting the
global standard for credit and debit card
payments, our banks will be able to
materially deal with the risk, leading to an
increase in consumer condence in using
credit and debit cards.
According to KBA, by the end of last
month, more than 70 per cent of the
cards in Kenya had been converted to
chip and pin technology and certied
EMV-compliant by Visa or MasterCard.
To coincide with the issuance of the
new EMV cards, banks last year com-
pleted the upgrade of their ATMs and
point of sale (POS) terminals to comply
with the security standard.
And with this, local nancial institu-
tions are expected to shut the door on the
global network of data criminals and their
collaborating hackers, phishers and
dumpster divers who trawl banking
systems, looking for loopholes that will
enable them empty accounts.
LOOKING FOR LOOPHOLES
It is important to note that the
magnetic stripe cards still work, and
customers can still use these cards, said
Mr Olaka. But we appreciate that
customers are keen to have the EMV-
compliant chip cards, and I would like to
reassure them that banks are working
hard to issue them.
To mark ATM Awareness Month, we will
run a series of informative articles on the
EMV migration. Next week, we discuss
the benets of chip and pin cards.
bizbeat@standardmedia.co.ke
some international court
judgements against it and which
it has failed to settle. Investors
dont like people who dont pay
their debts, irrespective of how
those debts were incurred.
Kenyan assets outside the
country will also be vulnerable
to conscation to enforce these
court decrees. After years of
pursuing Argentina through
foreign courts, NML Capital, for
example, impounded Argen-
tinas naval vessel, Libertad, in a
Ghanaian port in October 2012
after obtaining a court order
from a Ghanaian court.
But it is not only physical
assets that these vultures will
be targeting. They will also be
after the Governments cash. If
the Government went ahead
and issued the bond without
settling this debt, the Anglo
Leasing vultures could still
catch up with it on the virtual
streets of the international
nancial markets.
The Kenya bond will be a
dollar-denominated debt, and
whenever youre dealing in
dollars, various intermediaries
are going to be transferring the
money into US bank accounts.
Faced with an inability to
directly affect GoK action, the
vultures could instead go after
these banks. Armed with the
judgments, they will force the
concerned institutions to pay
them with the money Kenya
hands over to pay bondholders.
UNFAIR AND PAINFUL
Paying the Anglo Leasing
vultures is surely unfair and
painful. Any debt arising from
these fraudulent deals is no
doubt also illegitimate. But we
cant run away from them now if
there are court orders issued in
international jurisdictions
where we want to do business.
Unfortunately, international
law does not exempt citizens of
a corrupt regime from repaying
a debt incurred by corrupt
ofcials for nefarious purposes.
Government debt is supposed to
be paid, no matter who runs the
country.
Just like South Africans today
bear the debts of the apartheid
regime that borrowed from
private banks to nance the
military and police and repress
the African majority, we
Kenyans have to bear today the
burden of past corrupt regimes.
We have no choice but to
defer to international norm and
accept responsibility for these
debts because defaulting would
hurt our chances of managing
the economy.
The Sh1.4 billion debt could
in effect force us back into the
domestic markets, fuelling
ination and a high cost of
credit. That would cost us 20
times the gure we are trying to
protect in one year alone.
In any case, this debt wont
go away. It will continue to pile
up and some administration
would have to settle it one day
in the future. Let us pay the
vultures, but also make sure
we get them so that they dont
get to enjoy the fruits of their
labour.
Those saying, Cant pay,
wont pay, would have to give
us an alternative course of
action. They would have to tell
us how intransigence would not
extract a toll on the nations
economy and exclude us from
international capital markets.
The writer is a senior vice
president at Riyad Bank, Saudi
Arabia.
bizbeat@standardmedia.co.ke
<<CONTINUED FROM PAGE 13
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quat harcia volum, occum harciis aut eriaspe coreiur seque inullenimus dolorporeium hiti oc tet modis
aritiores aut aut omnisi dis as dolluptus nobit quatur? Udigendaese ra sunduntiore nobis quia vel
04/18
EXPIRES
END 04/14
VALID
FROM
4000
A.N. OTHER KENYAN
24 HOUR HELPLINE +254 00 000 000 / 0700 000 000
Business Beat
>> NSE COMMENTARY
Tuesday, May 6, 2014 / The Standard
16
NSE 20 Share Index +10.95 Dow Jones -45.98 (-0.28%) Nasdaq -3.55 (-0.09%) S&P 500 -2.54 (-0.13%) Oil +0.57% US$ +0.01%
4,959.91 16,512.89 4,123.90 1,881.14 $99.99 1 EUR = $ 1.3871
Source: NSE, SIB
While the market was largely upbeat during the
week (41 counters up), the benchmark NSE 20
Share Index was broadly unchanged at 4,959.91,
StandardInvestment Bank
Stock Price % week on week % year to date
Safaricom 13.10 0.4% 20.7%
KCB 50.00 0.5% 5.8%
Equity Bank 38.50 6.2% 25.2%
KenolKobil 8.90 -0.6% -11.9%
Stock Price % week on week % year to date
Liberty Kenya 22.00 14.6% 46.2%
Kenya Orchards 7.20 9.9% 140.0%
CFC Stanbic 134.00 8.1% 54.0%
CIC Insurance 10.45 7.2% 75.6%
Stock Price % week on week % year to date
Bamburi Cement 170.00 -8.1% -19.0%
BOC Kenya 137.00 -7.4% 9.6%
Standard Group 30.00 -7.0% 15.4%
Longhorn Kenya 12.90 -3.7% -4.4%
Accounting
for last
weeks
largest net
inows, KCB
closed at
a 52-week
high of Sh50.
The bank
released
results for
the rst
quarter
of 2014,
reporting
an 11 per
cent rise
in interest
income.
While the market was largely upbeat during
the week (41 counters up), the benchmark NSE
20 Share Index was broadly unchanged at
4,959.91. The NSE All Share Index notched 0.9
per cent higher as large caps beneted from
heavy investor trading.
Equity turnover went up by 2.9 per cent to
Sh3.7 billion. Foreign participation went down
14.1 per cent as local investors remained active.
The gainers list had newcomers, with Liberty
Kenya at the top of the list, adding 14.6 per cent,
week on week, to its value. Media reports
indicate that the insurance company is consider-
ing a buyout in Strategis (a Tanzania-based
insurance company) as part of the ongoing
restructuring of its Tanzania business. Crown
Berger also rose 7.1 per cent after releasing FY13
results last week. The company reported a 16.4
per cent rise in revenue from the previous year.
CIC notched 7.2 per cent higher as local investors
took positions on the counter in anticipation of
the bonus shares the company is set to issue.
Foreign investors bullish run on Equity Bank
continued last week, leading the counter to a
new 52-week high. Equity Bank notched 6.2 per
cent higher to close at Sh38.50. The bank is set
to issue 300,000 smartphones to retailers as it
prepares to launch mobile operations this
month. Accounting for the weeks largest net
inows, KCB also ended on a 52-week high of
Sh50. The bank released 1Q14 results, reporting
an 11 per cent rise in interest income.
On the losers list, Bamburi topped the list,
having hit a 52-week low to close the week at
Sh170.
Standard Investment Bank
Top Gainers
Top Movers
Top Losers
NSE All Share Index 151.85
Market capitalisation Sh2.111 trillion
Total shares traded 27,759,000
Equity turnover Sh916,508,389
Statistics as at May 2, 2014
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