Business 17 Feb 2016

Top News
Ideas & Debate
Page 2
Page 9
National Assembly rejects

Budget team members
Boost healthcare specialist

capacity to cut medical ights
Diabetes in infants linked

to rapid weight gain
Page 27
WEDNESDAY, FEBRUARY 17, 2016
NO. 2288
Life
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Mystey of Impeial
Bank saves who
have deed calls to
collect thei cash
Governor says action points to banks possible
involvement in a money laundering scheme
BY DAVID HERBLING
The mystery surrounding Imperial Banks collapse has deepened in recent weeks with the
failure by thousands of depositors to claim their
cash from the bank.
Central Bank of Kenya (CBK) governor Patrick
Njoroge yesterday told Parliament that only a
third or 16,955 depositors have lodged claims
and got paid their savings worth Sh6.4 billion
since the exercise began two months ago casting doubts on the authenticity of Imperial Banks
deposit accounts.
The CBK said it had set aside Sh8 billion to settle all claims of Sh1 million and below, meaning
some Sh1.6 billion remains unclaimed.
Dr Njoroge said forensic auditors were combing the banks accounts with a ne tooth pick to
establish the cause of the low turnout.
We are doing a detailed examination of deposits and loans. There are concerns of possible
money laundering, Dr Njoroge told members
of the National Assemblys Finance, Planning
and Trade Committee.
Investigations are ongoing and I dont want
to comment on that, he said.
Imperial Bank records show that it had
Why lifestyle diseases

should concern poor
Nairobi slum residents
Pages 12 -13
GHOST ACCOUNTS: IMPERIAL BANK

only a third of depositors have showed
up to claim cash
Total amount paid out so far to depositors*
Aitel founde meets Uhuu amid

Sh2.1bn licence ow with egulato
16,955
BY VICTOR JUMA
Sh6.4bn
Number of depositors who have been paid
49,942
Total number of account holders
Sh58bn
Total customer deposits at troubled lender

* as at Feb 12, 2016 SOURCE: CBK
44,364 account holders with less than Sh1 million who qualied to lodge claims for full access
to their cash.
IMPERIAL, Page 4
Sunil Bharti Mittal, the Indian

business mogul who founded the
giant telecoms company Bharti
Airtel, yesterday made a quiet
but high prole visit to Kenya
with a date at State House Nairobi where he met President Uhuru
Kenyatta.
Mr Mittal, who is the chief
executive of Bharti Enterprises,
the conglomerate that owns
the telecoms rm Bharti Airtel,

made the visit at a time when the
companys local subsidiary Airtel
Kenya is grappling with a number
of regulatory challenges.
Mr Mittal, accompanied by Airtel Kenya chairman Titus Naikuni,
met Mr Kenyatta at State House
where they discussed a range of
issues, including Airtels support
of the public schools digitisation
programme.
Keen followers of Airtel Ken-
yas agenda in recent months will

expect that Mr Mittal consulted
Mr Kenyatta on the very sticky
issues such as its licensing problem, whose renewal the Communications Authority of Kenya (CA)
has tied to payment of a Sh2.7 billion fee.
Airtel did not respond to
our queries by the time of going
to press, but Mr Mittals State
House visit is in line with those
MITTAL, Page 4
of his peers
ERC puts on hold cheaper

off-peak electricity tariff
Morroco national carrier

to launch Nairobi ights
Barclays to start offering

agency banking in March
Firm eyes expatriates

with high-end villas
Introduction of cheaper off-peak tariff

has again been delayed after the energy
regulator said pricing study is needed
before the rollout aimed at lowering
the cost of production for industrialists.
Moroccos national carrier, Royal Air

Maroc, is set to launch direct flights
between Nairobi and Casablanca on
March 31, significantly reducing the cost
and distance of travel between the cities
and boost bilateral trade. Page 7
Barclays Bank of Kenya plans to start

agency banking, which will make it the
first international lender to embrace the
model. The bank is expected to start
contracting agents before the end of
March. Page 19
New high-end rental villas targeting

the upper middle class and expatriates
are now open for occupation
on Kiambu Road for as much as
Sh400,000 per month.
Page 5
Page 20
BRIEFING
NEWS INDEPTH
President Uhuru Kenyatta with the founder of Bharti Airtel, Mr Sunil Bharti Mittal, when he called on him at State
House, Nairobi, yesterday. PSCU
BUSINESS DAILY | Wednesday February 17, 2016
TOP NEWS
National Assembly
ejects membes of
Budget Committee
Fighting the fakes
CONTROVERSY Majority of MPs voted against
renewal of teams tenure on claims of irregularities

mittee after six months, unless it invokes
Standing Order 48 to rescind its decision
MPs have rejected the re-appointment
to throw out the list.
of all 51 members of the Budget and ApDeputy Leader of Minority Jakoyo
propriations Committee, throwing the
Midiwo opposed a list presented by his
boss Francis Nyenze and Majority Leader
national budget making process into
Aden Duale, saying the membership could
disarray.
The House had just received the Budget
not be trusted.
Policy Statement from the Treasury yesterMr Midiwo reiterated his earlier claim
day, which the committee was supposed
that the committee had allocated each of
the 51 members millions of shillings to unto scrutinise and input public views bedertake various projects in their respective
fore returning it for debate. The Budget
Committees tenure came to an end at the
constituencies in the previous budgets.
close of the third session of the
The former committee
11th Parliament.
members had allocated themselves monies to go to their conIn a physical vote, 133
stituencies in the last budget. I
MPs voted to oppose the list
I uge the House oppose this Motion because I
while 63 supported it, forcing
Speaker Justin Muturi to rule to eject the list. If have raised this concern more
that the Liaison Committee, we wee to go with than three times.
We were to have a Kamukuwhich comprises chairperthe 51 membes, nji (informal
meeting), but this
sons of House committees,
takes over all functions of the let us have totally has not happened, he said.
Mr Midiwo said the comBudget Committee.
new membes
mittee had usurped the powThe legality of the SpeakJAKOYO MIDIYO, DEPUTY
ers move could, however, be
ers of other House teams and
MINORITY LEADER
questioned, as the Constitution
therefore the need to have
only recognises Budget and Appropriachairpersons of all committees, includtions Committee as the organ that scruing the departmental ones, to constitute
tinises and makes recommendations on
the Budget Committee.
the national budget after soliciting pubThey have usurped powers of other
lic views.
committees. They have taken away powThe Budget Policy Statement, submiters of nance committee. Worst is that
ted yesterday, is therefore committed to
membership of that committee have aleach departmental committee. Commitlocated themselves monies disguised as
tees are required to make their recombudget proposals.
mendations to the Liaison Committee
I urge the House to reject the list. If
chaired by Deputy Speaker Joyce Laboso
we were to go with the 51 members, let us
for consideration and report within 14
have totally new members who have not
days, Mr Muturi ruled.
participated in this irregularity, added
The House can only reintroduce the
Mr Midiwo.
Motion to reconstitute the Budget Comemutai@ke.nationmedia.com
BY EDWIN MUTAI
Athi River
Kenya Bureau of Standards managing director Charles Ongwae (right)and chief manager for market
surveillance Raymond Michuki lead in the torching of substandard goods valued at more than Sh20
million at EPZA grounds in Athi River yesterday. The standards regulator says it has intensied the war on substandard goods in
which the economy loses billions of shillings annually. SALATON NJAU
Kenyan diaspoa sues to stop vote egistation

BY SANDRA CHAO-BLASTO
Kenyans in the diaspora have moved to

court seeking to stop the ongoing voter
registration on grounds that the process has left out eligible citizens living
outside the country.
The diaspora is demanding to be registered by the Independent Electoral
and Boundaries Commission (IEBC).
The Kenya Diaspora Alliance and
New Vision Kenya have also sued the
director of citizenship and immigration services and the Attorney General
citing provisions of the 2010 Constitution that allow for Kenyans in the diaspora to participate in elections.
The failure of IEBC to register Kenyans living outside the country will disenfranchise them contrary to provisions
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the petition. The petitioners accuse

the AG, as the principal legal adviser
of the government, of failure to advise
the respondents.
In 2014 the electoral body led an
appeal with the Supreme Court seeking
to overturn a ruling by the Court of Appeal that ordered IEBC and other State
organs to put in place an infrastructure
for the registration of diaspora voters,
in time for the elections.
The appellate court ruled that Kenyans with dual citizenship and living
in the diaspora were eligible to be registered as voters.
Last May, the Supreme Court dismissed the application led by the
IEBC and upheld the requirements
for diaspora registration ordered by
the Court of Appeal.
Index to companies
This index of businesses mentioned in todays issue of the Business Daily is intended to include all
signicant references to companies.
NIGHT
DAY
of the Constitution and also discriminate them contrary to the Bill of Rights,
they said in court documents.
The month-long mass voter registration exercise began on Monday after
IEBC hired 5,756 clerks for the countrywide exercise that is targeting four
million new voters ahead of the 2017
General Election.
Donations from the US and the UK,
Sh153 million ($1.5 million), enabled
the electoral body to double clerks who
are conducting the registration process
using biometric kits.
If IEBC is allowed to proceed with
its plans as presently intended then
there will be no pressure on them to
register eligible Kenyan citizens in the
Diaspora and plan for them to vote on
Tuesday August 8, 2017, they said in
Imperial bank .......................1
Ashok Leyland ......................7
NIC.......................................19
CBK........................................1
KPA...................................... 17
Chase Bank.........................19
Airtel .....................................1
RVR......................................18
CBA .....................................19
Safaricom..........................1,4
Barclays..............................19
IRA.......................................19
Telkom ...............................1,4
Equity..................................19
I&M .................................... 20
KCAA .....................................7
Stanchart............................19
Co-op ................................. 20
KAA .......................................7
BoA......................................19
BoJ.......................................21
Wednesday February 17, 2016 | BUSINESS DAILY
TOP NEWS
RADAR SCREEN
R E U T E R S H E A LT H
DIET Study ndings indicate that expectant women should adhere to consumption guidelines to avoid related health risks
Eating lots of sh in
pegnancy linked to
obesity isk fo kids
P
regnant women who eat more
than three servings of sh a
week that is, more than the
maximum recommended by US health
regulators may face an increased risk
of having babies who grow rapidly and
become obese in childhood, a research
review suggests.
Previous research has linked one pollutant in sh mercury to damage
of the nervous, digestive and immune
systems, lungs, kidneys, skin and eyes.
Because of this, the US Food and Drug
Administration and Environmental
Protection Agency encourage pregnant
women to limit consumption to no more
than three servings a week.
The current study points to another
risk for pregnant women to consider
the potential for pollutants in sh
to contribute to childhood obesity
by interfering with hormone system
development while babies are in the
womb, researchers report in JAMA
Paediatrics.
Women shouldnt avoid sh altogether, because its a rich source of im-
portant nutrients like protein, vitamin

D and omega-3 fatty acids but they
shouldnt overindulge, said lead study
author Dr Leda Chatzi of the University
of Crete in Greece.
Our ndings indicate that women
should adhere to current sh consumption guidelines, Chatzi said by email.
In general, women should eat a
variety of types of sh each week and
avoid consumption of large predatory
sh such as king mackerel, swordsh,
shark and tilesh, Chatzi added, identifying some varieties that may contain
more pollutants.
To assess the connection between
maternal sh consumption and childhood obesity, Chatzi and colleagues
analysed data from 15 previously published studies that tracked more than
26,000 pregnant women and their children at two-year intervals until the kids
reached age six.
The combined study population included babies delivered from 1996 to
2011 in Belgium, France, Greece, Italy,
the Netherlands, Norway, Poland, Por-
A shmonger at Oile Market in Kisumu arranges tilapia for sale. FILE

tugal, Spain and the US state of Massachusetts.
Fish intake varied by region. In Belgium, for example, only half of the pregnant women ate sh more often than
once every two weeks. But in Spain, by
contrast, half the women were eating
sh more than four times a week.
With moderate sh consumption
one to three times a week researchers
didnt nd any association with rapid
infant growth or childhood obesity up
to age six.
But compared to women who rarely

at sh while pregnant, women who ate
sh more frequently during pregnancy
had a 22 per cent increased risk that
children would experience unusually
rapid growth from birth to age two, the
study found.
At the same time, women who consumed lots of sh had kids who were 14
per cent more likely to be overweight
or obese by age four and 22 per cent
more likely to carry excess pounds by
age six.
GM food awaits India nod as China bets on Syngenta buy
cials may decide on Friday whether to allow what could be Indias

rst genetically modied (GM)
food crop, mustard, spurred by food security concerns and as China makes a big bet
on the technology with a $43 billion (Sh4.4
trillion) bid for seed rm Syngenta.
Permitting GM food crops is a big call
for a country that spends tens of billions of
dollars importing edible oils and other food
items every year.
Farmers are stuck with old technology,
yields are at a fraction of global levels, cultivable land is shrinking and weather patterns have become less predictable.
Two straight droughts for the rst time
in three decades have made India a net importer of some food products for the rst
time in years. If a commercial launch of GM
mustard is allowed, it could pave the way for
other food crops such as corn varieties developed by Monsanto, in one of the worlds
biggest farm markets.
I see this as a test case and I am hopeful,
said Deepak Pental, the lead scientist who
used government grants to conduct tests on
the oilseed crop over the past decade.

How can we keep on running so scared
when there is so much need for improving
agricultural production?
But even winning the panels approval
is no guarantee that the GM crop would be
introduced. Political and public opposition
to lab-altered food remains strong amid fears
they could compromise food safety and biodiversity. There is also suspicion among
farmers that their introduction would give
foreign seed suppliers too much control.
Why is the government imposing its
decision on farmers on an unsafe and unproven technology, despite the availability
of good varieties of mustard in our country?
Manish Sisodia, Delhis deputy chief minister, told Prime Minister Narendra Modi
in a letter this week. We pray to you not to
compromise our agriculture, citizens health
and the environment under pressure from
a handful of foreign companies.
Fridays meeting, the third held to evaluate eld trial data on GM mustard, is an
indication of how serious Modis government is about pushing technology to lift
food production after an impasse under

the previous government halted research
on transgenic crops.
A member of the GM approval committee comprising government and independent experts said they had already discussed
the mustard in the past two meetings this
year, and the next gathering would be crucial to deciding its future. He declined to be
named and did not give more details.
Ashok Gulati, a farm economist who advised the last government, said that Chinas
takeover of Swiss GM seed developer Syngenta should push the government into
taking quick action. It should come as ...
a wakeup call for India, which has to feed
more than a billion mouths, said Gulati.
India now doesnt have the luxury to sit on
the issue of GM. It just needs to take this
bold and decisive step.
India placed a moratorium on GM aubergine in 2010, fearing the eect on food
safety and biodiversity. Field trials of other
GM crops were not formally halted, but the
regulatory system was brought to a deadlock after that. - REUTERS
The eect of heavy sh consumption was more pronounced in girls

than boys.
Researchers calculated these risks
based on estimated growth trajectories
across all of the studies.
One limitation of the analysis is that
it relied on women to report what they
ate, and they might not have been accurate, the authors note. The study also
cant prove whether consuming lots of
sh during pregnancy actually causes
children to become obese, only that
theres an association between these
two things.
The ndings are also a bit counterintuitive because some previous research
suggests omega-3 fatty acids in sh can
protect against obesity, noted Dr Emily Oken, a nutrition and public health
researcher at Harvard University who
wasnt involved in the study.
Mercury in sh isnt linked to obesity, even though its tied to other developmental problems, but its possible
pesticides or other contaminants in
sh might contribute to weight gain
in children, Oken said.
It is also possible that eating more
sh in pregnancy is just a marker for eating more, and we know that women who
gain more weight during pregnancy also
have children at higher risk for being
overweight, Oken added.
But women who eat sh in moderation shouldnt panic.
I dont like to use the word dangerous because that may well scare women
from eating sh, which are a good part
of a healthy diet, Oken said.
TOP NEWS
Mystey of Impeial
saves who have failed
to collect thei cash
Imperial Bank had a lender, commonly referred to as chopdi
total of 49,942 deposit ac- accounts.
counts, meaning 5,578 were considered
The lawmaker further alleged that the
large account holders who qualied for directors were aware of massive money
a maximum of Sh1 million from their laundering at Imperial Bank through an
entity known as W.E. Tilley (Muthaiga)
deposits.
The CBK had planned to spend about which also featured in the closure of
Sh8 billion to settle all claims of up to Sh1 Charterhouse Bank.
million by last Christmas. Imperial had
The banks directors were all aware
28 branches in Kenya.
of these and were part of it. Falsifying
Dr Njoroge said the CBK was, among books of account is a criminal oence,
other things, interrogating Imperial Bank said Mr Shabbir.
compliance with the Know
W.E. Tilley (Muthaiga) has
admitted to receiving Sh10
Your Customer (KYC) procedures during its opening
I have made it billion from Imperial Bank
of the accounts and whether
and has expressed readiness
clea that they to return the loot, according
all loans are backed by security.
will be held to to court documents.
The low turnout of savers
The CBK closed Impeaccount and
echoes a similar experience
rial Bank on October 13, 2015,
nobody will be citing unsafe and unsound
the CBK had at scandal-hit
spaed
Dubai Bank where only
business conditions to transact business at the mid-tier
561 out of the 7,700 depositors lodged claims after the
lender that had Sh58 billion
CBK oered to pay all deposits below in customer deposits.
Sh100,000.
The closure happened on the day ImThe banking sector regulator, through perial Bank was to list a Sh2 billion bond
KCB and DTB banks, on December 11, 2015 approved by the Capital Markets Aubegan paying small depositors at Imperial thority - at a xed rate of 15 per cent on
Bank all their dues.
the Nairobi bourse.
The CBK planned to have paid out the
Dr Njoroge was hard-pressed to exsmall account holders by end of March, plain how the regulator was unable to
the governor said, but the eort was be- detect the irregular practices at Imperial
ing undermined by the low rate at which Bank and the possible collusion between
depositors are making claims.
CBK sta and the fraudsters.
Kisumu Town East MP Shakeel ShabThe governor told the National Assembir said Imperial Bank directors were well bly that theres an ongoing forensic audit
aware of parallel banking activities in the by Washington D.C-based FTI Consulting
From Page 1
CBK governor Patrick Njoroge (left) with Kenya Deposit Insurance Corporation acting CEO Mohamud Ahmed and Kisumu Town East MP
Shakeel Shabbir (right) when he appeared before the National Assemblys Finance, Trade and Planning Committee yesterday. DIANA NGILA
whose outcome would see action taken

against all conspirators, including banking supervision sta.
Whoever perpetrated this will be
held accountable. Some of our sta were
complicit. I have made it clear that they
will be held to account and nobody will
be spared, he told MPs.
Our currency is credibility, a toughtalking Dr Njoroge told the House committee.
To forestall the possibility of another
case of parallel banking and cooking
books, Dr Njoroge said that beginning
this year, auditors will be required to
look into banks IT systems.
We have asked all auditors in the 2016
audit cycle to interrogate the IT system.
Previously, we never interrogated the IT
system, said the governor who took up

the reins on June 19, 2015.
The CBK reckons that software manipulation was used to siphon about Sh34
billion from Imperial Bank.
Imperial Banks long-serving group
managing director Abdulmalek Janmohamed fraudulently transferred a total
of Sh34 billion from depositors cash to
his entities and bank accounts between
2002 to September 15, 2015 when he died,
according to court lings.
On eorts to revive Imperial Bank,
Dr Njoroge told the National Assembly
that the owners were yet to present an
actionable plan to jump-start the collapsed lender.
The plan must be credible. We should
not be in the business of opening banks for
a temporary period of time, he said, rubbishing proposals oated by shareholders.

Shareholders have indicated willingness
to inject Sh10 billion capital into the bank
to be complemented by conversion of depositors savings into shares.
They (shareholders) cannot pass on
responsibility to depositors. There must be
appropriate burden sharing, which rests
with directors and shareholders, said Dr
Njoroge. Imperial Bank had Sh87 billion
in deposits at the time of collapse, but its
managers had suppressed Sh39 billion in
banks balance sheet.
Dr Njoroge said Imperial Bank directors were responsible for preparation of
books of accounts and their accuracy as
provided for under the law.
hdavid@ke.nationmedia.com
Aitel founde meets Uhuu amid Sh2.1 billion licence ow

From Page 1
who have sought the

Presidencys intervention when their companies are
facing major regulatory challenges.
Airtels operating licence expired in
February last year and its renewal remains uncertain as it ghts payment
of the fee.
Airtels licensing has been entangled
in intrigues, with reports that the CA had
initially waived the fee before making an
about turn to reinstate it.
Internal communications at the CA
allege that the recent disbandment of
the regulators board was linked to the
directors refusal to play ball on a number
of issues, including waiver of Airtels licence fee.
But what seems to have broken the
camels back was the board insisting that
Airtel Kenya must pay a total of Sh2.7

billion owed to the authority in licensee
fees, reads part of the CA correspondence seen by the Business Daily, adding that (these) fees had initially been
waived in unclear circumstances.
The CA board was disbanded early
this month following Attorney- General
Githu Muigais advice that an appeal challenging the High Court orders sending
the team home be withdrawn.
ICT secretary Joe Mucheru said the
seven-member board had ceased to be
in oce and that a process to establish a
new team had started immediately.
The CA board was rst disbanded by
Justice George Odunga on May 29 last
year on grounds that it had been illegally
constituted.
The board together with the then ICT
secretary Fred Matiangi moved to the

Court of Appeal to contest the ruling.
Airtel reckons that the fee is too high
for a small operator like itself, arguing
for a review of the amount with no success.
This has seen it rely on an operating licence acquired along with Essars
(yuMobile) assets in a deal concluded
early last year.
The Sh2.7 billion demanded by CA
includes Sh2 billion in spectrum fees
and Sh30.2 million for initial annual
operating fees.
Francis Wangusi, the CA directorgeneral, has demanded that Airtel pays
all applicable fees before its licence is
renewed and that the Essar licence they
are currently operating on was not automatically transferable.
Last year, in a joint buyout valued

at Sh12.3 billion, Airtel acquired Essar
Telecoms subscribers, GSM licences and
subscriber-related contracts.
Safaricom acquired Essar Telecoms
passive infrastructure located on 453
sites and associated agreements, transfer of the ground leases on which the passive infrastructure sits, and the right to
use the spectrum among others.
Airtel had until February 2015 to pay
the renewal fee for a 10-year licence following the expiry of the permit issued in
2000. Airtel paid Sh4.7 billion for its rst
15-year licence.
In a previous interview with the Business Daily, Airtel Kenya said it was counting on its parent company Bharti to pay
the renewal fee citing the fact that its
Kenyan business is yet to break even.
Besides the fee, renewal of Airtels licence is also tied to its meeting set service
quality targets.
All the four mobile operators, namely
Safaricom, Airtel, Orange and yuMobile
failed to meet the minimum quality of
voice service standards in the year to
June 2015.
The CA expects the operator to achieve
a score of 80 per cent on the eight indicators, including speech quality, completed calls, call success rates and call
drop rate.
Safaricom, Airtel and Telkom Kenyas
Orange tied on a score of 62.5 per cent
in the year to June while yuMobile had
a 50 per cent rating.
vjuma@ke.nationmedia.com
ECONOMY & POLITICS

NEWS I REVIEWS I ANALYSIS
Kiunjui beats a eteat on possibility of extending Tansition Authoitys tem

BY EDWIN MUTAI
Devolution and Planning secretary Mwangi

Kiunjuri has beat a retreat over his earlier
support for a one-year extension of the
Transition Authoritys term.
Mr Kiunjuri instead urged the National
Assembly to make a decision on whether the
term of the team led by Kinuthia wa Mwangi
should be extended beyond its three-year
constitutional limit. The tenure of TA, which
was established to oversee devolution of functions to the counties, ends on March 4, three
years after the coming into force of the 47
county governments.
Seven out of 16 board members of the
TA are government principal secretaries.
Therefore, the expertise and institutional
memory of the Transition Authority will be
retained by the government, thus ensuring
continuity, Mr Kiunjuri told the National Assemblys Constitutional Oversight Implemen-
tation Committee (COIC) yesterday.

He said most of the technical sta at TA
were on secondment from the national government and would be available to work at
the Intergovernmental Relations Technical
Committee (IRGTC), which has been mandated to recruit its own sta.
The IRGTC, chaired by former Education permanent secretary Karega Mutahi,
will succeed the agency. The committee
met the minister and Prof Mutahi to hear
TARIFFS Regulator ties shift to a pricing study
Companies to wait
longe fo cheape
o-peak electicity
Industrial Sector Power

Demand
Year
Demand
(Million KWh)
2010
3,204
2011
3,440
2012
3,409
2013
3,585
2014
3,891
Source: KNBS
BY KIARIE NJOROGE
Introduction of cheaper o-peak tari

has again been delayed after the energy
regulator said pricing study is required
before the rollout aimed at lowering the
cost of production for industrialists and
drive manufacturers to overnight production.
The Energy ministry is looking for
a consultant to conduct the tari study
in a process that could take at least nine
months, pushing the introduction of
night-tari to next year.
The o-peak power plan, which
would see industrialists enjoy a discount on the current taris between
11pm and 5am, was targeted for introduction in January.
Kenya Power and industrialists have
failed to reach a deal on the discount to
be oered on the o-peak tari, delaying the introduction of the night tari
that was mooted in 2008.
The study is necessary as it informs
any decision on taris. We should be able
to move (with the o-peak power plan)
once the study is complete, said Joseph
Nganga, the Energy Regulatory Commission (ERC) director-general.
The consultant will study the cost
of generating, transmitting and distributing power, setting the stage for the
o-peak tari and review of electricity
prices from next year.
The cheaper o-peak tari will encourage manufacturers to shift some of
their production to the o-peak period
in a move that would lower demand for
power during peak hours as Kenya strug-
Mr Nganga: A study is necessary before roll-out. FILE

gles to meet rising electricity needs of
households and businesses.
Large commercial and industrial
customers account for 40 per cent of
the total power consumption, according to Kenya Power data.
Night-time shift
Moving industrial production to nighttime is one of several options the government is pursuing to lower the cost
of production that would ultimately
reduce the cost of consumer goods and
make Kenyan products competitive in
the international market.
Manufacturers have been demanding discounts of up to 50 per cent before
shifting production to late night shifts,
but Kenya Power maintained that such
a cut could push it into loss.
Energy ocials reckon the country
consumes less than half the peak power
demand between midnight and 5am.

The peak hours begin at 9am, with
demand at its highest between 6pm and
9pm when Kenyans return home from
work and switch on house lighting, cooking appliances and TVs.
Industrialists have welcomed the opeak power plan, but say the discount
must be adequate to compensate for the
additional costs that come with operating during the night such as expensive
labour, security and transport.
Industrialists have in recent months
become sensitive to input cost increases, fearing they would hurt their competitiveness in the regional and global
markets where pricing is a key factor for
market share growth.
They, on average, pay about Sh15 per
unit of power, which is higher compared
to Sh2.60 for their Asian competitors.
gkiarie@ke.nationmedia.com
their views on whether or not the TAs tenure

should be extended. The TA had last week
urged MPs to extend its term by a further
three years to enable it complete critical
pending work.
Prof Mutahi said the IGRTC is ready to
take over from the TA. We are ready and
willing to take over what is left behind by
TA. The issues raised by TA with regards
to pending work on the area of pension,
urban areas and cities and the assets and
liabilities audit are residual, Prof Mutahi

told the committee chaired by Githunguri
MP Njoroge Baiya.
He dismissed TAs claim that the assets
and liabilities of the county governments
would be free for anyone to take, saying
an inventory is already in place. The audit of
these assets and liabilities will be done by Auditor- General Edward Ouko and not TA. The
AG is the legal audit oce, which can provide
qualied opinion on assets, he said.
Fesh NYS scam pobe afte

suspect implicates Waiguu
BY BD REPORTER
The Ethics and Anti-Corruption Commission (EACC) has launched a fresh probe
into the Sh791 million National Youth
Service (NYS) scandal.
The agency, in a statement yesterday,
said investigations had been launched
into allegations made in an adavit by
Ms Josephine Kabura Irungu.
We will be summoning Ms Kabura
and other persons of interest mentioned
in her adavit to assist in this fresh inquiry, said the statement signed by the
EACC Head of Corporate Communications
Kairichi Mirimba.
In her adavit, Ms Kabura mentioned
former Devolution Cabinet Secretary
Anne Waiguru, her personal assistant
Betty Maina, Mr Hassan Noor who was
the Chief of Sta in the ministry and Mr
Joseph Mugwanja who is the director of
the Banking Fraud Department.
She also mentioned Mr Adan Harakhe,
political analyst Mutahi Ngunyi and Ms
Loise Mbarire whom she alleges is Ms
Waugurus sister.
Ms Waiguru had earlier been cleared

of the allegations that she was involved in
the nancial scam, but Ms Kabura stated
in her adavit that she knew everything
that was going on and that she even helped
her register companies and open bank accounts for them.
Ms Kabura also alleged that Ms Waiguru approved payments to individuals and
deposits to bank accounts.
The businesswoman revealed dealings
that had a web of police ocers, journalists, businessmen, government ocials
and other people in the 102 paragraphed
adavit which opens a fresh insight into
the scam.
After the Press published the allegations made by Ms Kabura, Ms Waiguru
denied having met Ms Kabura or even
making any business dealings with her.
She said the allegations were fabricated aim at tarnishing her reputation.
She told Nation FM that the ridiculous
allegations contained in the adavit had
a lot of inconsistencies and said it is another attack on her.
Former Devolution Cabinet Secretary Anne Waiguru . FILE
ECONOMY & POLITICS

TRADE Former colonial master in drive to revive business ties weakened since Kibaki era
UK sets up Sh74bn
wa chest to ght
fo Naiobi expots
BY NEVILLE OTUKI
Britain yesterday announced a Sh74

billion fund to help Kenyans import
goods from the UK in the latest attempt
to boost the falling business clout of the
former colonial master that started with
Kibakis presidency in 2003.
UKs Trade envoy Lord Clive Hollick,
who is expected in the country today for
a three-day visit, is set to discuss details
of the fund which also covers UK rms
against risks incurred in exporting
goods to Kenya.
UK Export Finance (UKEF) will coordinate the advance of loans to businesses
and entrepreneurs to buy Britain made
goods, especially for infrastructure related projects, ultimately boosting the

import of British products to Kenya.
Central to his discussions with the
government will be UK Export Finance
which has set aside up to 500m (Sh74
billion) to support trade with Kenya,
says a statement from the British High
Commission in Nairobi.
Ocial data shows goods worth
Sh40.1 billion were imported from
Britain in the 11 months to November,
down from Sh41.3 billion in a similar
period in 2014. The drop saw the UK
slip two positions in the rank of Kenyas
top sellers, behind Germany and Saudi
Arabia in terms of doing business with
British Prime Minister David Cameron is

set to visit Kenya this year. AFP
East Africas largest economy. The UK
was the ninth largest seller of goods to
Nairobi, behind China (Sh295 billion),
India (Sh228 billion), the US (Sh117 billion), the United Arab Emirates (Sh81
billion) and Japan (Sh80 billion).
Britain is losing out to China, India,
and Japan whose share of business with
Kenya has been on the rise.
These countries target Kenya with
clothing, vehicles, electronics and pharmaceuticals which also top the UKs
dealings with East Africa. India and China have grown trade with Africa nations
helped by the low cost manufacturing
and increased diplomatic dealings
which have seen the two countries secure multi-billion shilling deals, especially in the public sector.
Relations between Nairobi and London came under focus following threats
by the former colonial master to cut ties
should Uhuru Kenyatta, then an ICC
indictee, be appointed president in the
2013 elections.
The charges against President Kenyatta have since been dropped.
The UK has recently been keen to
reset the frosty relations with Nairobi
with Prime Minister David Cameron set
to visit Kenya this year.
The cooling of business relations
with the UK started during President
Kibakis tenure with the country looking East, mainly China, for better deals
and unconditional aid.
The policy has seen Britain lose out
on lucrative deals with the government
such as supply of police and government
vehicles.
notuki@ke.nationmedia.com
Goveno vs Senatos
Nairobi
Bomet County governor Isaac Ruto
(second right)
elds questions
when he appeared
before the Senate Finance Committee chaired by
Billow Kerrow at
County Hall yesterday. DIANA NGILA
Uhuu to ght
extemism with
sepaate pisons
fo teoists
BY NEVILLE OTUKI
President Uhuru Kenyatta yesterday announced plans to lock terrorists in separate

prisons in a crackdown on extremism in
Kenyas crowded jails.
Mr Kenyatta said the counter-terrorism
strategy would help tackle radicalisation
in jails and prevent prisons becoming a
recruitment target for extremists.
Western nations are increasingly fretting over the rise in extremism in jails and
the UK early this month announced plans
to lock terrorists in separate prisons and
bar Imams from visiting jails.
Kenyas move comes at a time when
dozens of suspected terrorists aliated
to Somalia-based Al-Shabaab militants
continue to be detained together with
petty oenders, providing a platform to
fan their ideologies.
President Uhuru Kenyatta has announced Government plans to establish
a new correctional facility to conne extremist oenders, said State House in a
statement.
He said a separate prison for extremist
oenders will deter them from spreading
their venom to vulnerable Kenyans.
The comments were made by Mr Kenyatta during the passing out parade for over
2,300 prison warders at the Prisons Sta
Training College in Ruiru, Kiambu.
Kenya has in recent years suered a
spate of gun and bomb attacks from AlShabaab terror cells, putting the government under pressure to act.
Mr Kenyatta said the government seeks
to transform prisons into correctional facilities that would help integrate reformed
oenders into the society.
We will also improve the terms and
conditions of service for all prison personnel so that the importance of their work is
properly recognised and compensated,
he added.
There are about 110 prisons in the country, which are grappling with a swelling
inmate population.
Buundi cisis on the back bune at pesidents Ausha summit

BY GEORGE OMONDI
Burundi crisis is not the top priority of

East African presidents as they meet in
Arusha with the main aim of reviewing
the admission of South Sudan and Somalia to the East African Community (EAC)
trading bloc.
Burundi sank into a crisis last year after President Pierre Nkurunziza ran for a
third term of oce, which he secured in
a disputed vote.
Kenyas Uhuru Kenyatta, Tanzanias

John Magufuli, Yoweri Museveni of Uganda and Rwandas Paul Kagame will instead
focus on renewed eorts to admit South
Sudan and Somalia, the regions other
troubled spots, into the EAC.
Top on the agenda is the consideration of reports...on the admission of South
Sudan...and the verication exercise for
the admission of Somalia, the EAC secretariat said in a statement yesterday.
The protests that erupted in Burundi
after President Nkurunziza announced

his bid for third term in April later compounded to a political crisis after his relection in July.
Rwanda and Tanzania host most of the
Burundians refugees displaced since the
chaos started. While the African Union
and the United Nations have taken strong
stand on the crisis, the East African leaders have chosen cautious steps.
Among the conditions for EAC membership is political stability.
Yesterday, the EAC Secretariat steered

clear of the Burundi question as it announced the blocs ordinary Heads of
state Summit to be held in Arusha on
February 29.
The summit, which is normally held
in November, was postponed last year
to allow Tanzania to handle its political
transition.
South Sudan sought EAC membership in 2011 with Somalia making its bid
a year later. The bloc, however, rejected
both application saying the two states torn

by decades of war needed more time to
set up proper market and governance
institutions.
The regions top decision making organ will, however, discuss ways of nancing its activities amid concerns that the
sustainability of current overreliance on
donor funds.
At least 60 per cent of the blocs economic integration bill is currently footed
by donors, mostly European countries.
CORPORATE NEWS
PRICES I RESULTS I DATA
Moocco national caie to launch Naiobi ights

AVIATION Move expected to reduce travel costs,
increase trade and tourism between the countries

are both great tourist destinations. As we
y people to Kenya, those who want to
Moroccos national carrier, Royal Air Mavisit Morocco or connect to any of our 90roc, is set to launch direct ights between
plus destinations can easily do so.
Nairobi and Casablanca on March 31, sigKenyas exports to Morocco include
nicantly reducing the cost and distance
jute, dyeing and tanning extracts and
of travel between the cities. The move is
fruit juices.
also expected to increase trade between
Its imports are fertiliser, synthetic bres for spinning, perfumes
the countries.
and cosmetics, drugs, printThe State-owned Royal
ing and bookbinding maAir Maroc has been cleared
to operate two weekly ights We shall opeate chinery.
to JKIA, following the signThe trade is valued at
two weekly ights about
ing of trade and tourism
Sh300 million and
and add a thid tilted in Moroccos favour.
agreements between the
The two countries signed
Kenyan and Moroccan gov- fequency late in
a memorandum of underernments.
the yea
standing in June 2013.
Trade between the two
The delegation of 106
countries is relatively low
OTHMAN BABA
Moroccan investors who
and the bilateral agreement
AIR MAROC KENYA COUNTRY
witnessed it was particusigned in 2013 was meant to
MANAGER
larly keen on investing in
improve it.
We shall operate two weekly ights on
the countrys energy, agriculture and
Thursday and Saturday and add a third
pharmaceutical sectors.
frequency later on in the year, said OthThe pact was the second after an earman Baba, the Air Maroc country manlier one on tourism.
ager for Kenya ,in an interview. This is
Morocco, which receives an impresgreat news for both countries since they
sive 10 million visitors per year, had earBY MUGAMBI MUTEGI
M-Kopa set to launch sola-poweed

digital TV sets fo o-gid customes
BY VICTOR JUMA
Solar energy nancier M-Kopa is set

to launch digital, solar-powered television sets targeting customers living in
areas with no access to the national
electricity grid.
The TVs will be sold to customers on the companys existing model
where users pay a small deposit and
Sh50 daily for a year after which they
take full ownership of their solar lighting systems, including other gadgets
like lamps.
This means that M-Kopa essentially
bundles the hardware supplies with
credit to boost uptake from customers,
most of who are low-income earners.
The TV package is expected to be available from mid this year. M-Kopa says
free-to-air channels will be available
on the sets, whose prices could be announced during todays launch.
M-Kopas current power system
costs an estimated $200 (Sh20,000)
and includes a solar panel, two LED
bulbs, an LED ashlight, a rechargeable radio, and adaptors for charging
Sh20,000
The cost of M-Kopa current power
system
a phone.
The kit comes with a two-year warranty, and its battery is designed to last
at least four years. M-Kopa uses technology to control customer defaults,
with those failing to pay having their
gadgets switched o remotely from
the rms headquarters.
The company, which was launched
by former telecoms executives in 2012,
says it has connected more than
280,000 homes in Kenya, Tanzania and
Uganda to solar power and is adding
over 500 new homes each day.
All revenues are collected in realtime via mobile money systems such
as Safaricoms M-PESA, with embedded GSM sensors in each solar system
allowing the rm to monitor real time
performance and regulate usage based
on payments.
ing two daily ights to New York with

plans to start ying to Washington DC
in September.
Mohammed Sathi, head of the Moroccan Consulate in Nairobi, told the
Business Daily that the Embassy processes about 200 visa applications every
month.
International Visitor Arrivals to

Kenya (millions)
Moroccos national airline will on March
31 commence direct ights to Kenya,
potentially increasing trade and tourism
between the two countries
Popular destination
A Royal Air Maroc passenger plane. The airline has been cleared to operate two weekly
ights to JKIA. FILE
lier on signed a tourism agreement with
Kenya whose annual tourist numbers are
about a million, dipping from highs of 1.8
million in 2011.
This is very good news for Kenya as
it will open up a new market to export
coee and other products, said Gilbert
Kibe, the Kenya Civil Aviation Authority (KCAA) director-general. Air Maroc,
which is based at the Mohammed V International Airport in Casablanca, will
operate Boeing 767-300 aircraft between

Kenya and Morocco, carrying 236 passengers. Travellers to the North African
country are currently forced go through
Dubai, Doha, Amsterdam or Paris, a
longer and costlier journey.
A one-way ticket from Nairobi to Casablanca on is currently priced at Sh54,784.
Air Maroc has scheduled international
ights from Morocco to African cities,
Asia, Europe, and North America includ-
Indian automake Leyland

to set up Sh500m tucks and
buses assembly plant in Kenya
BY KIARIE NJOROGE
Indian automaker Ashok Leyland is looking to set up a Sh500 million trucks and
buses assembly plant in Kenya, joining
the rapidly expanding commercial vehicles market.
Several India media outlets have quoted the companys Chief Financial Ocer
Gopal Mahadevan announcing the plan to
set up three assembly plants in Africa, with
Kenya being one of the prime targets.
Ashok Leyland becomes the latest global manufacturer eyeing Kenya.
Toyota and Chinese automaker Foton
started assembling their vehicles locally
in 2013.
Were looking to set up two to three
assembly sites in Africa. We are devising
East African and West Africa strategies and
we have short-listed Kenya as a possible
market for setting up our rst assembly
unit, Mr Mahadevan was quoted saying
Cars for sale at a Toyota outlet. Toyota

started assembling cars locally in 2013. AFP
by The Hindu. The plan will see Ashok

Leyland seek a local partner to develop
the plant with. The company will then
ship in complete knock-down kits to be
assembled to full units and sold in Kenya
and regionally.
It is expected that the company will
start with assembling buses, with the
trucks assembly line coming on later.
Ashok Leyland trucks and buses are
currently distributed in the country by
Morocco has a lot to oer in terms of

tourism, especially since it is a popular
destination for conferences. On the other
hand, there are many businesspeople who
want to invest in Kenya and Air Maroc
will facilitate that, Mr Sathi said.
In May 2009 the airline signed an
agreement with the Kenya Airports Authority (KAA) to pave the way for Casablanca-Nairobi ights in November of
that year. This never materialised.
Three years later, Moroccan authorities revived the negotiations, suggesting
that Kenya Airways and Air Moroc join
forces as they sought to use Nairobi as
to reach East Africa, the Seychelles and
Madagascar.
In June 2013, during the signing of
bilateral agreement with Kenya, the
Morocco Minister of Industry said the
ights would commence before the end
of that year.
pmutegi@ke.nationmedia.com
TruckMart East Africa. Mr Mahadevan

said that a lot of trucks in Africa are supplied by Chinese manufacturers, adding
that they will be oering quality products
at competitive prices.
The African operations will be headquartered in the Middle East. Cities in
the East African region are phasing out
small public transport vehicles in favour
of high capacity buses, further deepening
the market.
The region is also pouring billions of
shillings into infrastructural development
which provides a good market for trucks.
Earlier this month, German motor vehicle
manufacturer Daimler AG opened an ofce in Nairobi aiming to use it as an entry
to East, Central and West Africas truck
and bus market.
The oce will manage sales and customer service of both Mercedes-Benz and
FUSO brands in 41 markets in the region.
Daimler has the biggest market share in
Kenyas heavy commercial trucks business,
selling about 500 units of Mercedes Actros
prime movers last year.
Indias largest automaker, Tata, last
month opened two new dealerships one
targeting farmers in Narok with tractors
and another in Ruiru to sell heavy commercial vehicles such as tippers, prime
movers and concrete mixers.
CORPORATE NEWS
Huawei takes on Samsung with Sh70,000 smat phone

Sh70,000
BY DOREEN WAINAINAH
Chinese tech company Huawei has

launched its latest high-end phone in
the Kenyan market, Huawei Mate 8,
taking on rivals Samsung and Apple
in the competition for smartphone
customers.
The Sh70,000 device is the closest
that Huawei has come to taking on the
Samsung Galaxy 6 edge plus series,
which debuted locally late last year
at Sh100,000 as well as the iPhone 6
plus which costs about Sh110,000 in
Nairobi.
Despite the sti competition from
recent and new entrants in Kenya, the
market is still huge enough to oer quality products that meet customers needs
at competitive prices, said Huawei Technologies CEO Dean Yu.
The mid and high-end smartphones
market is currently dominated by Samsung. Huawei has set its sights on growing its share of the Kenyan market from
the current 15 per cent to 25 per cent by
the end of the year.
The company has a range of four devices; the Y series for entry level phones,
the G for mid-level, P for high-end buyers and the Mate and D series for the
luxury market.
The entry-level market has become
highly competitive for device makers, with the inux of low cost smartphones including Tecno, Innix, GTech
and Wiko.
The local market, previously dominated by Koreas Samsung and LG and
the Finnish Nokia (now Microsoft) has
recorded increased activity by Chinese
mobile makers including Oppo.
Ocial data shows that Sh15.5 billion worth of Chinese phones were
The cost of the Huawei Mate 8

launched yesterday in Kenya
shipped into the country in the year to
November.
Chinese brands have in recent years
rmed their presence in the local market with low-cost, medium and highend smartphones, providing consumers with a wide range of Internet-enabled devices.
Huawei, which came into the Kenyan market in 2011, reported that its
revenue last year hit Sh5.2 billion ($52
million) from its businesses that include
building telecommunication networks,
providing equipment, software and services to enterprises and manufacturing
devices including mobile phones and

wearables.
This comes after Innix announced
that it had sold over 500,000 units in
Kenya since 2014.
Huawei Mate 8 is a direct response
to the technology shift where the PC
economy continues to fade, said Mr
Yu, who also indicated that the devices
were targeted towards enterprises embracing the Bring Your Own Device
(BYOD) model.
The Mate 8 comes with a six-inch
screen, 16 megapixel camera and in
the options of 64GB storage with 4GB
RAM or 32GB storage with 3GB RAM,
retailing at Sh69,999 and Sh59,999 respectively.
The 32GB version is expected in the
market next month, with both versions
available in silver, grey, champagne gold
and mocha gold.
Best Westen Hotel owne in deal with

Fench goup to launch Pullman Naiobi
HOSPITALITY Coast tycoon putting up 11-storey building to house AccorHotels Pullman brand
PIPELINE: upcoming global
hotel brands in Kenya
BY DAVID HERBLING
The owner of Best Western Plus Creekside Hotel in Mombasa is building a

luxurious hotel in Nairobi that will be
managed by French group AccorHotels
under the Pullman brand.
Mombasa businessman Amjad Rahim will own the building that will host
Nairobi Pullman Hotel, an upscale brand
targeting high-end guests.
The coast-based tycoon told the Business Daily in an interview that the 11-storey hotel currently under construction
in Westlands, behind the Westgate Mall,
would be completed early next year.
He, however, declined to disclose the
cost of the project. AccorHotels which
will manage the facility said the Pullman Hotel in Nairobi would be nished
to the chains global standards.
Some adaptations and design needed to be done by the owner to match with
the upscale market and the Pullman
brand. That explains the delay, said
Manol Parrent, AccorHotels operational marketing director for Middle East
and Africa, explaining why the project
will not be completed as per the earlier
deadline of November this year.
We are rst targeting the corporates
and meetings, incentives, conferences,
and exhibitions (mice). It is in line with
the growing demand from international
and African travellers throughout the
continent, Mr Parrent told the Business Daily.
The French hotel group said it was
attracted to Kenya because Nairobi of-
Hotel
Opening Rooms
Date
Pullman
2017
340
City Lodge
2016
170
Hilton Garden
2016
171
Wyndham
2017
89
Four Points by
Sheraton
2017
194
Radisson Blu
Residence
2017
123
Mombasa businessman Amjad Rahim (right) with Governor Ali Hassan Joho. FILE
Movenpick Hotel
& Residences
2018
223
fers higher returns than hotels in European cities.

Returns on investment are generally
higher here in Nairobi than in European
capitals, said AccorHotels.
The 340-room Pullman Hotel Nairobi
will increase Nairobis bed capacity in
tandem with growing demand for accommodation and meeting rooms driven by the citys status as the regional hub
for many multinationals. It will feature
two restaurants, two bars, a gym, spa,
swimming pool and a total of 14 boardrooms tailored for business meetings.
Mr Rahim also owns Cowrie Shell
Beach Apartments in Bamburi, Valley
View Oce Park in Muthaiga, Nairobi,
and an upcoming holiday apartment in
Diani named Golden Sand Resort.
AccorHotels, listed on the Paris
bourse, becomes the latest global ho-
Park Inn
2016
162
Acacia Premier
Nairobi
2017
168
Tamarind Tree
2016
162
tbc
tbc
tel chain to announce plans to establish presence in Kenyas hospitality

industry which has recently witnessed
increased activity.
The French hotelier also owns ve
other luxury hotel brands such as Sotel, Pullman, MGallery, Grand Mercure,
and The Sebel. Its mid-level oering
are Novotel, Suite Novotel, Mercure,
and Adagio.
AccorHotels economy brands are:
ibis, ibis Styles, ibis budget, adagio access and hotelF1. The upcoming hotel
in Nairobi adds to Pullmans six existing
units across Africa located in Morocco
(Marrakech and El Jadida), Dakar, Abidjan, Kinshasa, and Douala. Pullman has
also signed management contracts for
two other upcoming hotels in Addis
Ababa and Lubumbashi.
Pullman said it plans to grow its net-
Marriot
SOURCE: BD RESEARCH
work on the continent and be present in

the 30 main cities all over Africa.
Pullman has a global network of more
than 95 hotels and resorts in Europe,
Africa, Middle East, Asia-Pacic and
Latin America.
Other upcoming hotels in Nairobi are
Park Inn, Tune Hotels, Hilton Garden
Inn, Ramada, Mvenpick Hotel, and
Four Points by Sheraton.
hdavid@ke.nationmedia.com
Entrance to the Kenya Broadcasting

Corporation ofces in Nairobi. FILE
City Hall blocks

KBC entance in
Sh2bn ates ow
BY KIARIE NJOROGE
City Hall ocials yesterday used garbage

trucks to block the entrance to the Kenya
Broadcasting Corporation (KBC) headquarters demanding Sh2.06 billion in land rates
as the county government moved to recover
billions of shillings owed by parastatals.
The loss-making State broadcaster issued
a cheque of Sh5 million to the ocials, promising to hold talks with the county government before Tuesday next week on how to
clear the balance.
City Hall claims it is owed Sh110 billion
in land rates, with government institutions
accounting for about half of the amount.
We dont want to target the private owners only because the major rate defaulters are
parastatals and the national government,
said county treasury head Morris Okere.
He added that KBC failed to honour a
2014 agreement in which they were to pay
Sh5 million every month.
City Hall is also targeting other parastatals including the Kenya Airports Authority which owes Sh441 million, the Kenya
Railways (Sh300 million) and Kenya National Trading Company (Sh5.5 million).
Others are the Kenya Medical Research
Institute, Telkom Kenya and Kenya Power.
Clamping down on private institutions
involves demanding that tenants pay their
rent directly to the county until the arrears
is cleared.
The City Hall ocials said they could order workers to vacate parastatals premises
until the rates are paid.
City Hall paralysed operations at Kenya
Powers Stima Plaza for four hours in October last year as it demanded Sh608 million
way leave arrears claim.
The Nairobi County government says the
money is needed to oer services, including
garbage collection, equipping county hospitals and paying street lighting bills.
Sh110bn
The amount Nairobi County is owed in
unpaid land rates with State agencies
accounting for about half of the cash.
IDEAS & DEBATE

OPINIONS I REVIEWS I ANALYSIS
Doctors perform a medical test using diagnostic equipment at a Nakuru hospital. SULEIMAN MBATIAH
Boost healthcae specialist

capacity to cut medical ights
VIEW Various hospitals already providing mid-level
specialised services can develop along the Indian model
BY GEORGE WACHIRA
ast month, I attended a couple

of fundraisers for friends and
relatives going to India for specialised medical treatment. This is an
implied indication that Kenya does not
have sucient capacity for specialised
healthcare. In the rst case the issue
was that Kenya does not have the right
diagnostic equipment for the specic
complication.
In the second case, the economics
favoured going to India because the
combined cost of travel and treatment
was lower than using Kenyan healthcare
institutions. This sums up the two issues
plaguing Kenyas specialised healthcare
-capacity and aordability.
Before I proceed I wish to advise that
I am not an expert in the area of healthcare provision, but as a Kenyan who is
directly and indirectly impacted, I do
take keen interest in the subject, and I
am sure many other Kenyans do.
Kenyans were starting to wonder who
exactly is to blame for the slow rate of
maturity of our healthcare sector. Kenya
has produced hundreds of doctors locally since 1972, and it would be expected
that by now we would be exporting not
importing specialised healthcare from
India or any other country.
Recently and out of blues we received

tion in Kenya (and cost indications).
a shocker. There were claims that Kenya
This should provide a benchmarked
has been living a lie and that in deed
catalogue of information based on global
sucient local specialised healthcare
best practices and standards. It should
services exist. There were also allegabe comprehensive information which
includes specialist qualications and
tions that many medical referrals to
experience, diagnostic capacity, and
India by Kenyan doctors have been
aftercare services. Advertising alone
corruptly done in collusion with Inwill only add to public confusion.
dian institutions. These allegations we
The Indian healthcare providers
understand are under investigations,
may
have recognised the information
and as such we cannot talk much about
confusion and apparent
them here.
insucient capacity to
Then there was an adVentue
capital
establish lucrative medimission by the medical
can
easily
board that there is insufcal referral networks with
cient public information
Kenya, aided mainly by
link up with
an obvious cost advanon the subject of specialKenyan medical
tage
in India. Recently
ised healthcare services
specialists to
the National Hospital
in Kenya. According to
fund st class
Insurance Fund (NHIF)
the regulator, Kenyans
infastuctue
do not suciently know
appears to have fallen for
what specialised medical
this and are now planning
services are available in
to airlift their insured to
India for specialised care.
Kenya and hence cannot correctly make
The presidential trip to India end of
informed decisions on their healthcare.
This is because the medical profession in
last year appears to have encouraged InKenya does not allow publicity on medidians to come and partner with Kenyans
cal services. The board mentioned that
to set up specialised healthcare instituthey are working on xing this infortions in Kenya. These two examples are
mation gap.
in a way an ocial government admisIn xing the information gap what is
sion that specialised healthcare capacity
required is not merely advertising, but
in Kenya is insucient.
However we know as a fact that at
independently and professionally veried and certied information of services
least four major private healthcare proavailable at any one healthcare instituviders in Nairobi have excellent and
advanced capacity for specialised treatment. In fact, one of these institutions (a

teaching university) actually trains postgraduate specialists and technologists.
For these tier-one private institutions
the main issue has been aordability
as they remain mostly inaccessible to
many Kenyans who are without medical insurance cover .
The public Kenyatta National Hospital is understood to have advanced
specialised healthcare which is relatively aordable, but capacity is not
sucient enough to cater for the thousands of needy Kenyans. One can now
start to understand why many patients
have to desperately seek to go to Indiaaordability being a key factor.
There are also many other smaller
private and church-based hospitals
all over the country who do their best
endeavour to provide mid-level specialised medical services. These are an
indispensable part of Kenyan healthcare
systems. These hospitals can easily develop along the Indian model to oer
advanced specialised care at relatively
aordable costs.
Other Voices
Bernie Sanders
US Presidential Hopeful
Guardian, Jonathan Freedland

The presidential hopeful far outshines Labours
leader, but Democrats need to consider the
risk that hell hand the White House to the
Republicans. Now I know what its like to Feel
the Bern. During a week in New Hampshire
culminating in his 22-point victory over Hillary
Clinton, I saw Bernie Sanders in action, and its
quite something. The talk of a movement is not
exaggerated. His followers many, but not all,
young are ready to walk through snowstorms
to wave signs, hand out T-shirts and cheer
themselves hoarse at his every sentence.
George Bush
Former US President
Fair prot
Yes, Kenya can create a healthcare sector that ably competes with India and
potentially make Kenya a healthcare
tourist destination. However it takes
both the public and private healthcare
sectors to make it happen. Excellence,
competition, and fair prot can form an
eective business model for successful
private healthcare provision. But the
regulatory processes and facilitation
should be friendly enough to make this
happen. Venture capital can easily link
up with Kenyan medical specialists to
fund rst class infrastructure and equipment for specialised healthcare.
Best expression
But the government (national and county) has the primary responsibility to avail
aordable specialised treatment to the
majority of Kenyans who cannot aord
the higher costs in tier-one private hospitals or even in India. And I guess the
recent procurement of advanced diagnostic equipment for each county is just
the beginning.
However it takes more than the hardware to generate success. It is the motivated and well resourced specialists
and technologists who will make it happen, and for this sucient funding by
both national and county government is
the best expression of commitment. We
also need to correctly train and graduate
our doctors, nurses and technologists
through well vetted modern curriculum
and certied lecturers.
Mr Wachira, Petroleum focus Consultants, wachira@petroleumfocus.com
Seema Mehta, Los Angeles Times

He left ofce seven years ago, settling into a
retirement of writing and painting, carefully
maintaining a vow to leave politics and the
conicts of campaigning behind.
But family comes rst, and George W. Bush
emerged from his quiet life in Dallas and
returned to the political stage in South
Carolina, a state that resuscitated his White
House aspirations in 2000.
This time he was on another rescue mission,
for his younger brother, Jeb, and a oncepromising candidacy now in grave peril.
Antonin Scalia
US Supreme Court Judge
Editorial , Daily Nation

Antonin Scalias death has given Obama one nal
chance to force his liberal legacy on Americans
This unseemly ght encapsulates the cultural politics
of the entire Obama presidency. The death of Antonin
Scalia was tragic on three counts. First, a family lost a
husband and father a fact that seemed lost on some
of those who rushed to comment on the politics of
his death. Second, the US conservative movement is
deprived of one of its most outstanding thinkers.
Scalia was the go-to for intellectual justication of strict
constitutionalism, anti-government libertarianism and
social conservatism. Liberals say that he defended the
indefensible. That some of them actually cheered his
passing should make the Right mourn him all the more.
10
EDITORIAL & OPINION

Published by the Nation Media Group, Kimathi Street, Nairobi
Joe Muganda Chief Executive Ofcer | Tom Mshindi: Editor-in- Chief

Ochieng Rapuro: Managing Editor
P.O.Box 49010 GPO Nairobi Telephone: 254 20 328 8104 Fax: 254 20 214849
Email : bdfeedback@nation.co.ke www.bdafrica.com
Pesident must lead by

example on austeity
resident Uhuru Kenyatta last

week returned to his pet subject of austerity during his
meeting with governors at the Sagana State Lodge in Nyeri. It was his
latest signal that the countrys public
nances require a good measure of
parsimony and prudent management
to keep the economy on track.
It was the third time the president
went public on this subject in as many
years including one in which he and
his Cabinet promised to voluntarily
take a pay cut. The fact, however, is
that none of these eorts have yielded
much in terms of curbing proigate
spending in government.
A large part of the problem is that
the president has unfortunately
not lived by the same rules he has
been trying to set for others -- allowing State Houses spending to shoot
through the roof.
The impact of such actions is
that public ocers the president
has been asking to exercise austerity
may be looking at the Presidencys expenditure and seeing the hollowness
of his words.
Ocial records show that the Presidencys spending more than doubled
in the past two years and in the very
areas -- travel, hospitality, entertainment and publicity that Mr Keny-
atta has been urging austerity. In the

three months to September last year,
for instance, the Presidency spent
Sh1.49 billion up from Sh714 million
in a similar period a year earlier.
It does not help that Mr Kenyattas
government plans to double the Presidencys cash in the next budget. It all
points to a failure by the Presidency
to lead by example and completely
undermines Mr Kenyattas message
to the lower cadre state ocers and
the counties.
It should therefore not be surprising to see this type of proigacy spread
to the county governments where little
or no money is going into the more critical development budget. The World
Bank report released last week shows
that a majority of counties spent only
a small fraction of their allocations on
development, with the rest going to
fuel and oce costs.
Yet Mr Kenyatta appears unfazed
by these developments, announcing last week that the national and
county governments will cut by 60
per cent their travel and allowance
expenditure.
We would like to remind the president that austerity will not happen by
mere talk but through real actions at
all levels of government, including
his oce.
Punish gaft suspects
he UKs Serious Fraud Oce

(SFO) says it will return to
the Kenyan taxpayer some
Sh52 million recovered from the
British printing rm that paid out
hefty bribes to Kenyan electoral and
examination ocials. Indeed, that
is how anti-corruption agencies are
supposed to work; not only naming
and shaming people making the lives
of folk dicult through questionable
deals, but also seizing and returning
the loot to the rightful owners.
The amount so far seized and will
soon be wired to Kenya may not turn
heads or become a trending topic in
Kenya where unclean deals run into billions of shillings, but the steps taken by
the SFO should stir local law enforcers
to action and re a warning that it is
not business as usual. Key questions
revolve around levels of openness,
disclosures, asset recovery ability, and
respect for public oce.
Kenyan law enforcement agencies
must take a cue from their British counterparts and do a thorough job not only
going after the thieves and bringing
them to justice, but also getting back
to the people of Kenya all property they
have stolen.
If it is a case of limited capacity,
Kenyan authorities now have the
backing of institutions like the SFO
to nd the thread to any inappropriateness in the printing tender that involved millions of shillings.
Indeed, the SFO recently handed
over the Chickengate les that were
used to punish Smith & Ouzman to
the Kenyan anti-corruption agency,
EACC.
The ethics agency and the ARA
have to freeze, seize, and return the
public assets that may have been lost
in the printing contract. Indeed, all the
suspects should be asked tough questions, prosecuted, and punished as a
warning to the rest who may be planning similar acts.
To comment...
The editor invites comments on our content and topical issues. Please include your full names, telephone number and address in your letter.
Email: bdfeedback2@ke.nationmedia.com
Sick leave? Yes, we do have those... If you fall sick, you leave!
What is impeding budget implementation?

FERNANDES BARASA
FINANCE
he report by the Oce of the Controller of Budget that reveals how ve

counties failed to spend Sh9.2 billion
is both troubling and negates the intention
of budget making and its implementation
process. The Kenyan budget cycle, guided
by the 2010 Constitution and enabling Public Financial Management legislation, runs
throughout the nancial year. Although the
cycle involves both budget preparation and
implementation activities, it is evident that
our budget process is primarily driven by the
preparation of elaborate budgets that are often a challenge to implement.
Budgeting and the implementation of
budgets are two sides of the same coin. A
poorly formulated budget is often impossible to implement, while a poor budget implementation strategy renders even the best of
budgets impotent.
The public debate has, however, often
been about the numbers underpinning the
budget and very rarely focuses on budget
implementation issues. Over the past three
years, the Oce of the Controller of Budget
has released quarterly Budget Implementation Review Reports . These reports provide
an analysis of the progress made, by both the
national and county governments, in the implementation of approved budgets.
What is interesting to note is that the
reports have consistently identied certain
challenges to budget implementation. While
the whole budget process from preparation
through to implementation and review should
ideally be seamless, it may be time for policy
makers to lay more emphasis on the implementation issues of the budget. A countrys
revenue potential determines its expenditure
priorities and spending appetite. Revenue col-
lection is therefore critical in the implementation of a national budget. Kenyas revenue performance was reported to have signicantly
aected budget implementation in the rst
half of the 2015/2016 nancial year.
According to the Treasury, the total cumulative revenue including Appropriations
In Aid (A-I-A) amounted to Sh575.2 billion
against a target of Sh642.9 billion at the end
of December 2015. This implies a shortfall of
Sh67.7 billion in revenue collections occasioned
by a Sh47.6 billion shortfall in ordinary revenue
and a Sh20 billion shortfall in A-I-A.
The quarter one Budget Implementation
Review Reports for the 2015/2016 nancial
year conrm that the lag in revenue collection disrupted the smooth ow of funds to
nance development and general government operations.
Revenue performance is also aected by
the budgeted revenue forecasts. The draft
Budget Policy Statement (BPS) for 2016/17
projects revenue collection at 20.8 per cent
of Gross Domestic Product from 20.3 per
cent in the 2015/16 nancial year.
The BPS has further cited the ongoing reforms in tax policy and revenue administration as the justication for increased targets.
It is, however, critical to recognise that, the
2015/2016 revenue projections were also underpinned by various tax reforms such as the
excise act and the tax procedure act.
The delay in implementing these reforms
was reported by the Controller of Budget as
having signicantly aected revenue collection. The reported half- year revenue shortfalls are an indication that the Kenya Revenue
Authority may not meet its annual revenue
target. It is therefore critical that revenue
forecasts are carefully considered to reect
existing economic realities and provide achievable targets.
Revenue collection also aects the Excheq-
uers ability to release funds to appropriate expenditure lines. The Controller of Budget has
consistently highlighted the delayed release
of funds as a critical impediment to budget
implementation.
The quarter one report notes that only
17.1 per cent out of a targeted 25 per cent of
the annual net estimates were released to the
ministries, departments and government
Agencies (MDAs) and counties. The government cash crunch in the period to October
2015 was reported to have occasioned a revision of expenditure and priority spending.
This reects signicant challenges in Kenyas
liquidity management and inhibits the implementation of policies and priorities.
A-I-As is yet another category of revenue
that aects the overall revenue collection in the
county. These are incomes that a Government
department is authorized to retain (rather than
surrender to the Consolidated Fund). The income osets related expenditure in the current
nancial year. The Controller of Budget has
consistently cited the non disclosure of AIAs in
the ministries, departments and government
agencies nancial reports.
This poor reporting leads to overstated
expenditure by the respective ministries, departments and government agencies. It further
causes inaccuracy in the revenue reports that
should determine the overall spending capacity of the country.
Kenyas capacity to generate sucient
revenues is critical to budget implementation. With Parliament set to consider and
approve the proposed 2016 Budget Policy
Statement by 28th February, policy makers
should be keen to interrogate the proposals
for revenue collections as it will inevitably
aect the countrys ability to implement the
approved budget.
Mr Barasa is national chairman, Institute
of Certied Public Accountants of Kenya
VIEWS FROM ABROAD

Reclaim civility for US polls
Opinions fom aound the wold

Taking aim at alcohol abuse
Devaluing naira not right
If President Obama has a theme for his last year in office,

it may be this: To remind Americans to sustain civility in
their political contests. That message could be his greatest
gift to future generations
CH SCIENCE MONITOR
BOSTON
especially as the 2016
presidential campaign brings a new low in name-calling
and a new high in yelling. In his final State of the Union
address in January, Mr. Obamas strongest point came in a
moment of humble remorse about his legacy: Its one of
the few regrets of my presidency that the rancour and
suspicion between the parties has gotten worse instead
of better.
The government will try to reduce excessive drinking in

Japan, according to a draft plan to be endorsed by the
Cabinet in May. The government says it will establish at
THE JAPAN TIMES
least one medical institution
TOKYO
specialising in alcoholism
in each prefecture, while setting numerical targets to
reduce the lifestyle-related diseases that result from heavy
drinking. The initiative, while welcome, comes late in a
country where alcohol-related health problems are all too
common. The government plan is good, as far as it goes,
but remains insufficient to counter the devastating effects
of widespread alcohol abuse.
There is no doubt that the Muhammadu Buhari

administrations resolve not to devalue the naira is the
correct position to take in Nigerias circumstance. Since the
THE GUARDIAN
downturn in the price of crude
LAGOS
oil in the international market,
Nigerias foreign exchange earnings and reserves have
been adversely affected. Consequently, there have been
calls for or against the devaluation of naira, with each side
of the divide providing reasons for its position. In faraway
Nairobi, Kenya, President Muhammadu Buhari settled the
issue. He told a group of Nigerians in that country, that his
administration will not devalue the naira.
11
EDITORIAL & OPINION
Supeme Cout judges death challenges US leadeship

GINA CHON
GOVERNANCE
he death of Antonin Scalia disrupts

the Supreme Courts balance and
electries an already charged presidential race. The longest-serving member
of the panel also leaves behind a vacancy
just as the highest US court is considering
important cases on immigration, abortion
and unions. Leading Republicans are already threatening to block any Barack
Obama nominee to replace Scalia, hinting at a destabilizing stalemate.
Slumping oil prices, slower growth in
China and negative interest-rate policies
out of the European and Japanese central
banks have made for a volatile year.

The S&P 500 Index has tumbled by 9
percent to start 2016, while shares in European banks have fallen by more than 25 per
cent. In its fragile state, the world is seeking
leadership from the United States.
Restoring the Supreme Court to nine
members in the few months it generally
takes to do would be a strong showing that
American politicians can govern on some
matters despite the dysfunction witnessed
over the last few years.
With Scalia, a Ronald Reagan appointee, there was a ve-to-four conservative majority. A White House nominee
to replace Scalia which Obama said he
would do just hours after Scalias death
Letters
requires approval from the Republicancontrolled Senate.

Conservative presidential candidate
Ted Cruz, a former Supreme Court clerk,
said Scalias replacement should be left
to Obamas successor and Senate Majority Leader Mitch McConnell concurred.
That would leave the seat empty for at
least a year.
At eight members, the court is at risk of
being deadlocked. That could upend issues
such as the presidents executive action
allowing 5 million illegal immigrants to
stay in the country. If the Supreme Court
cant reach a majority opinion, the lower
courts ruling halting the order would be
armed.
In January, the court also seemed like

it might decide that workers dont have to
join public-sector unions, and therefore
not pay dues, which would be a major
blow to the labour movement. That decision also now hangs in the balance, as
does the courts rst major abortion case
in almost a decade.
With so much at stake, a compromise
on a centrist candidate would be an ideal
outcome, both for the country and as a
show of leadership around the world. The
US political realities, however, threaten to
rattle already shaky global investors and
economies.
The author is a Reuters Breakingviews
columnist
The editor welcomes brief letters on topical issues. Opinions expressed here are not necessarily those of
the editor or publisher. They may be edited for clarity, space or legal considerations.
Send via e-mail to bdfeedback2@ke.nationmedia.com
Public jobs should be opened to all qualied candidates
n a circular dated February

3, Chief of Sta and Head of
Public Service Joseph Kinyua
directed Cabinet secretaries not to
appoint any public servant to boards
of parastatals because the Constitution provides that a full - time State
ocer shall not participate in any
other gainful employment.
The directive will see up to 80
senior civil servants sitting in various boards replaced because they
are earning double salaries against
the law.
The number of executives, both
in the public and private sectors,
earning a second salary from public
coers might be in the hundreds,
based on the high turnover of such
prominent persons names appearing in some local newspapers as having applied and later shortlisted for
certain jobs in the counties.
About ten years ago, the government came up with a policy that all
vacancies in the public sector would
Jobseekers queue to be interviewed.

FILE
be advertised in the media so that all

eligible Kenyans could have an equal
chance competing for them.
In fact for some very top jobs, we
have seen those shortlisted being
subjected to rigorous live television
interviews.
Any member of the public with
misgivings on any shortlisted candidate is allowed to present a sworn
adavit highlighting the candidates
unsuitability to the selection panel
days before the interview so that the
candidate can be asked to comment
on the adverse report on his/her char-
acter during the interview. All these

laborious processes are religiously
followed in order to convince all and
sundry that employment in the public sector is devoid of earlier malaise
of nepotism, tribalism and that issues
of gender and regional balance have
been considered.
However, sampling through the
names of candidates who have at one
time or another been shortlisted for
whichever vacancy in the last ve
years or more, one sees the names
of particular individuals.
This creates the impression that
vacancies for top jobs in the public
sector are a preserve of a clique of
people who are in the public limelight. Maybe due to frailties of human nature, the selection personnel lack the will and drive to peruse
each and every application together
with supporting certicates and testimonials.
They resort to shortlisting only
those applications with popular
names, disregarding the rest despite

their high qualications. Probably,
the remedy is for the government
to introduce a new policy that will
require that all those who apply for
top government jobs are invited for
a series of knock-out oral and written aptitude tests.
This will discourage renowned
technocrats from competing for jobs
in their home counties.
Secondly, the government should
come up with a policy that reserves
short-term renewable jobs like chairpersons and members of boards for
qualied and energetic retirees so
that they can use their long experience in advising on the best direction
the organisation can take.
Young people should be encouraged to stick to jobs where they can
acquire many years of experience as
opposed to hopping from one place
to another in search of greener pastures.
AGGREY KULALI, via email
Teachers promotion scheme is not fair to the tutors
he teachers promotion
scheme is not fair. Whereas
it is true that the scheme of
service states that after three years
a graduate teacher should be promoted to job groups M, N and P
after competitive interviews, the
truth is that stagnating in one job
group is the norm rather than the
exemption.
The interviews are not fair to many
deserving teachers. We have teachers
staying in one job group for 10 to 15
years and even former students come
in and overtake them.
For instance, a graduate teacher
employed in 1981 was recently promoted to job group M. The interviews

for job group N last year left many
qualied teachers bitter and wondering what the Teachers Service Commission (TSC) is really looking for.
Even deployment as head teachers
and deputies is sometimes is shrouded in mystery and arbitrary transfer
of principals is common.
Teachers feel that TSC is not an
equal opportunity employer. It is
discriminatory, harsh and cares less
about the welfare of its workers and is
guided by policies that are impressive
on paper, but wanting in implemen-
tation. The recent enhanced house

allowance for teachers in big municipalities like Kisumu and Mombasa is
an example of the confusing policy.
Why should a teacher in the central business district (CBD) be denied
enhanced house allowance?
TSCs obsession with performance contracts is driven by intense
desire to rein in the teacher and
stem strikes.
The teachers quest for increased
basic pay , particularly the 50 per cent
and 60 per cent raise awarded by the
Industrial Court has enraged TSC,
which is hellbent on ensuring that a
sweeper at the secretariat earns more

than a graduate teacher.
The intimidation has made teachers docile and on the lookout for better opportunities. There is need for
paradigm shift by TSC if the profession is to continue attracting and retaining the best brains.
No amount of window-dressing
will erase the fact that teachers continue to be harassed by their employer
in their quest for better pay, promotions, better working conditions and
general welfare.
ZABLON OLIECH AWANGE
via email
New Companies
Act opens doo to
next geneation
of entepeneus
ROSA NDUATI-MUTERO
BUSINESS
he signing of the new Companies Act into law

last September was a signicant milestone
for Kenya as the country seeks to establish
itself as the regional commercial hub of East Africa.
In addition, a good number of the provisions have
come into legal eect with the reminder expected
to do so in the next few months.
That means that many of the previous outdated
legal structures that have held Kenyan companies
back for so long have been stripped away. The New
Companies Act, which borrows heavily from the UK
Companies Act of 1985 and 2006, appreciates modern business practices and realities and introduces
legal and commercial concepts that were previously
not permitted in Kenya.
It takes cognisance of the role that technology
currently plays in society and business alike; codies director duties and obligations and minority
shareholder rights; and updates nes and penalties
to ght corruption and reect prevailing economic
conditions.
The repealed Companies Act provided that a private company must have at least two shareholders.
The New Companies Act provides that a company
can have one member. Companies that have already
been incorporated can also reduce the members to
one member.
A sole member company can now have one
shareholder who is a sole director, although the
current requirement by the Kenya Revenue Authority for at least two director personal identication numbers (PINs) for company registration on
the iTax system slightly negates this directive and
will need to be changed.
Sustained
The repealed Companies Act provided that a
company only be allowed to pursue the business
objects set out in its memorandum of association. The New Companies Act now provides
that unless the articles of the companies expressly restrict the objects of the company, the
objects are unrestricted, so companies can now
be exible and versatile in their operations.
In terms of corporate governance, a private company with a paid up share capital of less than Sh5
million is not required to have a company secretary.
The New Companies Act provides that anything that
should have been done by a company secretary may
be done by a director or any other person authorised
to do so by the directors.
Furthermore, the New Companies Act has
removed prohibitions on nancial assistance for
private companies, that is the nancing of the purchase of its own shares through loans, guarantees,
security and indemnities to an acquirer.
A lot of work is still needed to put in place the relevant regulatory machinery, but the modernisation
and simplication of company law in Kenya places
huge opportunities directly into the hands of the next
generation of Kenyan business entrepreneurs and
if they are taken, this continued trend of sustained,
stable economic growth will be assured.
The writer is Partner with Anjarwalla &
Khanna Advocates
12
NEWS INDEPTH
that the increase is seven times higher among the
poorest urban women compared with the richest
urban women.
Nairobis slums are known for their thriving
vegetable markets. So, why are slum residents
not consuming adequate amounts of fruit and
vegetables?
Initially we thought that the price of the fruit
and vegetables was prohibitive for slum residents
given that the majority of them live on less than
$2 (Sh204) a day.
But the price is not the main deterrent. While
imported fruit such as pomegranates may, understandably, be expensive, local produce such
as bananas or the trendy superfood kale a Kenyan staple for generations known as sukuma wiki
are aordable.
When we dug a bit deeper through focus group
discussions, we found there was a social desirability
issue: slum residents wanted junk food because it
reected a higher socioeconomic status.
Their aspirations are linked to a combination
of clever marketing, celebrity culture and the social media frenzy around global fast food outlets
opening in Kenya.
And who could blame them? In the past few
years, several major global fast food brands have
set up shop in Kenya including KFC chicken and
Pizza Hut. And more are said to be eyeing an entrance into East Africas largest economy.
Why its hard to change eating habits
Why lifestyle diseases should

woy Naiobi slum esidents
NUTRITION
Less than half of

citys poor meet daily
fruit and vegetable
requirements, but
prefer junk food that
is exposing them to
deadly diseases
BY SAMUEL OTI
cientic evidence shows that consuming at

least ve portions of fruit and vegetables a
day can prolong your life and reduce your
risk of developing non-communicable diseases
such as diabetes and cancer.
Yet not enough people across the world are consuming adequate amounts of fruit and vegetables.
In low and middle income countries, over 75 per
cent of adults consume less than the minimum
recommendation. In Tanzania more than 95 per
cent of people consume less than the minimum
requirement.
In the slums of Nairobi, our research shows that
less than half of the adult population are meeting their daily fruit or vegetable requirements.
Instead, as global fast food outlets ood the Kenyan market, they prefer junk food which they see
as a status symbol.
This could be why there are high levels of hypertension and diabetes in these slums where one in
every ve people has one of the two conditions.
In addition, we found that less than a quarter
of those who had diabetes were aware of their
condition. And fewer than ve per cent of all
people with diabetes had their blood sugar under control.
The increase in non-communicable diseases
CURBING JUNK FOOD

Policies should protect the
lives of people by:
Promoting access to healthy food
Regulating the production, sale and marketing of
junk food (and drinks)
Ensuring that the food supply chain is free of toxic
chemicals, drugs and other contaminants, and
Minimising the effects of food production on climate change and vice versa.
such as diabetes in low and middle income countries is largely driven by rapid urbanisation and
preferences for high-calorie diets with decreasing
levels of physical activity.
In sub-Saharan Africa alone diabetes suerers
are projected to double from 12 million to 24 million in the next two decades. Evidence from the
World Health Organisation shows type 2 diabetes
will be the key contributor to this rise.
Several studies from the continent show excessive body weight and obesity as risk factors
for diabetes.
A review of the Demographic and Health Survey data from seven African countries over 10 years
shows that there are rising trends in overweight
and obese urban women. Even more worrying is
Roadside traders
Peter Onyango
and Mary Anyango
prepare food
for Mathare
slum residents
in Nairobi last
December.
GERALD ANDERSON
Trying to nd ways to promote fruit and vegetable

consumption among slum residents isnt easy. To
add to the problem one of Kenyas major dailies
recently published a bombshell article slamming
fruit and vegetables.
According to the article, laboratory tests conducted by scientists on samples of fruit and vegetables from across Nairobi found toxic levels of
various substances.
It argued that samples of sukuma wiki had
shown high levels of lead, most likely from contaminated riverbeds where the vegetable is typically grown. And samples of bananas and oranges
had high levels of calcium carbide, which is used
illegally to hasten the ripening of fruit.
The article sparked widespread negative reaction and has exacerbated the challenge of those
living in urban slums not eating vegetables.
The World Health Organisations recommendations for improving fruit and vegetable intake
are pitched at a high policy level.
For example, one recommendation is that marketing of food and beverages to children should
be restricted.
But for health practitioners on the ground suggestions such as these do not necessarily translate
into practical steps to change eating habits.
The challenge health practitioners have is what
message do we pass to the residents of Nairobis
slums? Do we ask them to eat more fruit and vegetables given the revelations in the news article?
Or do we ask them to stick with junk food until
the relevant authorities get their act together and
halt illicit practices aecting the fruit and vegetable industry?
Clearly this is a catch-22 situation. The newspaper article highlights the need for developing
countries like Kenya to review their food and agricultural policies.
The policy environment for these interventions
is currently weak. And unless the government takes
urgent steps to put these policies in place, there is
no way to stop people from lining up at the next
fast food outlet.
- THE CONVERSATION
13
NEWS INDEPTH
How fuit ies can help halt Afican scientists bain dain
The humble fruit y is being put to an
unusual use in sub-Saharan Africa:
its being used as bait. Its intended
lure? Its hoped that the tiny creature,
whose scientic name is Drosophila
melanogaster, can stop the exodus of
researchers from Africa.
At the moment most of the biomedical research being done in African laboratories is performed using rats. Now a
project called DrosAfrica is underway
to promote the use of the fruit y as a
model organism for research into human diseases.
There are several reasons for this.
Firstly, rats are far more expensive
to keep than fruit ies. As an aordable alternative, the fruit y requires
fewer resources to maintain and not
as much expensive preparation for experiments.
Also, as a model system, Drosophila
enables researchers to perform sophisticated genetics, live imaging, genomewide analysis and other state-of-the-art
approaches. Drosophila research has
identied thousands of genes with human equivalents. This has provided key
insights into cancer biology, pathology,
neurobiology and immunology.
Drosophila is a prime model organism with tens of thousands of researchers working on every aspect of their biology. This work is aided by electronic
open resources such as Flybase and
stock centres like the one in Bloomington, Indiana in the US. The centre
will send Drosophila to any lab in the
world for the cost of shipping. These
stock centres are funded by governmental grants enabling 100 000 ies to be
kept alive in warehouses.
And entire research unit has been
A research assistant at the International Centre of Insect Physiology and Ecology laboratory in Nairobi. PHOEBE OKALL
built with a focus on understanding a
specic aspect of the y. The most famous is called Janelia Farm, founded
by the Howard Hughes Medical Institute in the US.
The project thats using fruit ies as
bait for scientists is known as DrosAfrica. It wants to drive the paradigm
shift from rats to ies as experimental
organisms. To do this, project leaders
have organised workshops to share
fruit y techniques with universities
and research institutes across sub Saharan Africa. But theres more to the
work than merely extolling the virtues
of fruit ies.
We also try to provide basic equipment such as dissecting microscopes,
buers, slides and antibodies for labelling proteins to facilitate the creation of
local research communities. Such strong
communities will ultimately be able to
provide PhD programmes and research
opportunities for African researchers.
This will mean students dont automatically feel they have to emigrate when
seeking research opportunities.
Powerful local research programmes
will also help to place the continent in
the spotlight of international research.
This could ultimately lead to a return
of expatriates with a strong scientic
background.
During the last three years, DrosAfrica has organised three workshops at the
Institute of Biomedical Research Kam-
pala International University, Uganda.

Two focused exclusively on the use of
Drosophila for biomedical research. The
other concentrated on image and data
analysis techniques.
Attendants and faculty members
of the rst DrosAfrica workshop Drosophila in Biomedical Research: Aordable AND Impacting! (Summer 2013)
The workshop participants came
from sub-Saharan Africa and included Nigerians, Kenyans, Ugandans and
a delegate from South Sudan. They
were able to work on several common
projects and then networked after the
workshops using information and resources on a dedicated website. These
interactions planted the seed for developing an African Drosophila research
community. At this institute, weve
been lucky to build on the work that
the non-prot organisation Trend has
already done. Their team of volunteer
scientists equipped the institutes lab
and introduced insect research models
to the local scientists.
In 2016 the project plans to deliver
workshops at Kenyas International
Centre of Insect Physiology and Ecology. The team is also visiting Nigeria
during the second half of February to
pave the way for future research collaborations.
The work done over the past few
years has already paid dividends. Alumni from the workshops have presented
their work at international scientic
conferences and supervised undergraduate, Masters and PhD projects.
The DrosAfrica project is taking important steps to increase the African
contribution to scientic advancement.
- THE CONVERSATION
Poo still go hungy despite low food pices
Trader Priscilla Kaara waits for customers at Isiolo Market. The global
food prices have fallen, but the cost remains high in poor countries.
PHOEBE OKALL
lobal food prices are at their lowest level

in years, but thanks to the exceptionally
strong US dollar poor people in developing countries suering severe climate shocks
are seeing no benet.
The FAO Food Price Index for 2015 was
19 points down on 2014, marking the fourth
consecutive annual decline across a basket of
commodities.
Abundant supplies in the face of a timid
world demand and an appreciating US dollar
are the main reasons for the general weakness
that has dominated food prices in 2015, said
the index, released in January.
The food price shocks of 2007 and 2011, which
squeezed family budgets and drove the poor
deeper into poverty, are over.
The major producers responded to the high
prices by boosting output, leading to the current surpluses.
But several developing countries currently
need to import as a result of poor agricultural
seasons, and what you pay for in food imports

is a function of the strength of your currency
against the dollar and its purchasing power,
noted FAO senior economist, Abdolreza Abbassian.
The US Dollar Index, which measures the dollar against major currencies, was up by around
10 per cent at the end of 2015.
So far this year the dollar has gained against
currencies of all description developed market, emerging market, commodity currencies,
the Financial Times wrote.
For southern Africa and especially South
Africa the situation is particularly grim.
South Africa is the maize basket for the region, but last year an El Nio-induced drought
dropped output by 30 per cent. Its feared that
more late rains again at the end of 2015 could
see production fall by as much as 50 per cent, at
a time when the rand is trading at record lows
against the dollar.
Its a very alarming situation in southern
Africa, said Abbassian.

Across the region maize reserves are dangerously low, and 30 million people are regarded as
food insecure meaning they lack access to
enough food to lead healthy lives. While South
Africa as an economic leader can manage the
crisis, other more vulnerable countries will need
food aid to get by.
The poor regional harvest and the dry conditions at the start of the 2016 crop season mean
local food prices have continued to climb doubling in some cases, according to FAOs latest
monthly Food Price Monitoring and Analysis
bulletin.
The fact that there are global food surpluses
and yet people are still going hungry means the
problem is about access to food rather than
availability, said Abbassian.
The worlds ability to grow more food is not
the solution to hunger, but its aordability in
local markets.
- IRIN
14
REGIONAL NEWS
TIMELINE
UGANDA: KEY DATES SINCE INDEPENDENCE
Uganda, which won

independence from Britain
in 1962, has a long history of
dictatorial rule and violence.
For the past three decades it has
been under the strongarm rule of
President Yoweri Museveni, who
hopes to be re-elected for a fth
term on February 18.
Here is a list of key dates.
INDEPENDENCE
October 9, 1962:
Uganda gains
independence
after being
a British
protectorate since
1894, with Milton
TERROR OF IDI AMIN -
Obote serving as
prime minister
and Edward
Mutesa,
king of
Buganda, as
head of state.
A year later, the
constitutional monarchy is
replaced by a republic, and Mutesa is
named ceremonial president.
January 25, 1971: General Idi Amin,

head of the army, seizes power while
Obote is away.
Amins eight-year reign is particularly
brutal, with between 300,000-500,000
people killed. He also expels some
60,000 foreigners, mainly Indians and
Pakistanis.
April 15, 1966: Obote deposes

Mutesa and declares himself
president, and a year later
a constitutional change
gives him almost all powers.
Socialist-inspired Obote rules
with an iron st.
April 11, 1979:

Idi Amin is overthrown by troops from
neighbouring Tanzania, who have also
backed Ugandan rebels, the National
Liberation Front. Amin ees into exile.
OBOTES COMEBACK
December 15, 1980: After nine
years in exile in Tanzania, Obote
returns to power, with his Ugandan
Peoples Congress (UPC) party winning
elections.
A vicious guerilla war lasts until
1985, leaving 300,000 people
dead. The guerillas are led by
Yoweri Museveni.
NRM spent 12 times

more money than all
seven rival candidates
put together
gandan President Yoweri

Musevenis success in Thursdays election is widely predicted, but the violence in pursuit of
victory that characterised previous
polls has scarcely been seen.
After three decades in oce, Museveni and his National Resistance
Movement (NRM) are eyeing a fth
term for one of Africas longest-serving leaders, but have little need to
bludgeon opponents who can be
overpowered with money and reach
instead. The NRM is attempting
to run a clean campaign, and thats
something new, said Angelo Izama,
a political commentator.
Elections in 2006 and 2011 were
marred by violent, and occasionally
deadly, street protests and the liberal use of tear gas by heavy-handed
police. Campaigning for Thursdays
election so far has been largely peaceful despite leading opposition candidates, Kizza Besigye and Amama
Mbabazi, posing the strongest challenge yet.
Monday was an exception, with
police saying at least one person was
killed as they fought running battles
Ugandan female police ofcer is assisted by colleagues after she was hit by a tear gas
canister thrown back at the police line by protesters. AFP
with opposition supporters. Opposition politicians said three people were
shot dead, and Besigye was briey
detained. The electoral playing eld,
however, is pitched at such a steep
gradient that challengers are beaten
before they begin.
Elections in Uganda are bought
more than rigged, said Henry Muguzi, national coordinator of the
Alliance for Election Campaign
Finance Monitoring, a civil society
watchdog.
Muguzi calculates the NRM party
and all its candidates spent $35 million (32 million euros) campaigning
in November and December, equivalent to 87 per cent of all party election
spending. He says Museveni spent $8
million on his campaign in the same
period, nearly 12 times the amount
spent by all the other seven presidential candidates put together.

Among the tools at Musevenis
disposal is a helicopter leased from
a Kenyan businessman that previously helped carry Tanzanias John
Magufuli to victory in the neighbouring nations October poll.
While Museveni ies over their
heads, other candidates are forced to
drive Ugandas frequently potholed
and congested roads to reach farung voters in 290 constituencies,
across a country roughly the size of
Britain.
Museveni is in a league of his
own, said Muguzi. The level of
spending of the ruling party is insane.
Muguzi lists cash giveaways,
handouts of farming equipment or
January 26, 1986:

Museveni and his National
Resistance Army capture Kampala
and he becomes president. The new
government soon nds itself ghting
new rebel forces.
In 1988, the Lords
Resistance Army
(LRA) led
by Joseph
Kony
emerges
as a rebel
group.
May 9, 1996:
Ruling paty campaign sets

stage fo victoy in Uganda
COST Musevenis
MUSEVENIS REBELS TAKE

POWER
party goodies and voter hospitality

where voters are invited to eat and
drink until you can drink no more.
Like other observers of Ugandan politics, Muguzi says government money
is regularly deployed to party ends,
especially during elections.
The government raids the national treasury and diverts public
resources for campaigns, said Muguzi. The party and the government
are fused, you cannot separate them.
That fusion extends to the military, a
one-time rebel army that commands
an outsized proportion of the national budget, with uniformed men and
women widely seen as NRM partisans.
When opposition rallies come to
the capital, armoured water cannon
trucks and police ocers appear at
a trac-clogged junction by the electoral commission headquarters. Every day pick-ups race around Kampala
ferrying police, soldiers and feared
red beret troops, and every evening
gangs of so-called crime preventers a hastily-recruited pro-government neighbourhood watch
scheme jog through the streets
chanting slogans.
The threat of violence is pervasive, said Gabrielle Lynch, a researcher at Britains Warwick university. The
NRMs broad and deep reach results
in a localisation of intimidation,
he said, with people knowing a vote
against the ruling party can mean the
withholding of government funds in
the future.
-AFP
Museveni wins the rst direct presidential

election. He is re-elected in March 2001.
In 2005, a constitutional amendment allows
him to run again as often as he likes.
Museveni wins two more elections
in 2006 and 2011, polls rejected by
opposition leader Kizza Besigye.
COST OF MILITARY
INTERVENTION
1998-2003:
Uganda joins the regional war in the Democratic
Republic of Congo. Ugandan soldiers fought with
their Rwandan allies and were charged by the
International Court of Justice with looting Congos
resources.
2007:
Uganda troops form the backbone of the African
Union mission to Somalia, battling Al-Qaeda
linked Al-Shabaab insurgents.
In July 11, 2010:
Shabaab suicide bombers kill 76 people in
Kampala as they watch the World Cup nal in
revenge.
December 2013:
Uganda sends troops
to back neighbouring
South Sudans
President Salva
Kiir, pulling out in
October 2015.
2016:
Troops remain in South Sudan ghting LRA rebel
remnants in the region, seeking to end their three
decade-long campaign across ve central African
nations. The LRA is accused
of killing more than
100,000 people and
kidnapping more
than 60,000
children,
starting in
northern
Uganda.
WEDNESDAY, FEBRUARY 17, 2016
PAGES 16-17 East Africa tops

nations with smooth travel access
15
PAGE 18 : Norwegian fund buys

Sh1bn stake in Kenyan freight rm
Citys Aipot Noth Road st to get

lifesave panels in new safety dive
discourage pedestrians from crossing roads from undesignated areas

and help bring down fatalities in
Nairobi County which accounted
for 75 per cent of pedestrian deaths
in Kenya last year.
Ocial statistics show that the
county had a total of 668 road
deaths in 2015, majority being pedestrians at 497 deaths. The NTSA
aims at bringing down the number
to 30 per cent.
Most dangerous
ROAD CARNAGE
Nairobi County
accounted for
75 per cent
of pedestrian
deaths in Kenya
last year
BY ANNIE NJANJA
he National Transport and

Safety Authority (NTSA) is
set to build the rst of a series
of safety panels on key roads in Nairobi to help tame rising cases of accidents involving jaywalkers.
The rst barrier will be installed
on Nairobis Airport North road
which has become one of the most
dangerous in the city.
The roads targeted are Jogoo Road
(3.5km), Landhies Road (2km), Waiyaki Way (5.2km), Mombasa Road
(3.4km) and Airport North Road
(1.2km).
For the North Airport Road we
are doing in partnership with Kenya
Urban Roads Authority (KURA) and
are in the procurement process, we
should start erecting the safety panels
soon, Francis Meja, the NTSA Director General said.
The stretch between Uhuru
Highways Bunyala round-about
and Bellevue in South C, General
Motors bus stage and Waiyaki Ways
Kangemi area will be the projects
next targets. Other targeted roads
Comparison of fatalities based on

absolute gures 2015/2014
VICTIM TYPE
2015
2014
PEDESTRIANS
1,344
1,340
DRIVERS
339
268
PASSENGERS
668
642
M/CYCLE FATALITIES
637
553
PEDAL CYCLISTS
TOTAL
69
104
3,057
2,907
Source: NTSA 2014/2015 report.
are Jogoo Road and Landhies Road.

We are putting up barriers on the
roads to prevent pedestrians from
crossing from any point of the road.
We want them to use the footbridges
that have been erected on the roads,
said Mr Meja.
Toyota Kenya, in partnership
with NTSA, will build safety panels
on a small stretch of Mombasa Road
starting from the area near Nyayo
roundabout .
The government last year oered
businesses in Nairobi a deal to build
Sh310 million safety panels along key
roads in exchange for free advertis-
ing. We are talking to corporates and

a good number have showed interest
in the project. Toyota Kenya is already
taking it up. We have standardised
the requirements and provided guidelines to our partners. Those who are
ready can start the project, for instance we have given Toyota Kenya
a go ahead, he said.
As part of the partnership with
corporates, NTSA said, it will provide
a list of fabricators who will make the
panels to ensure uniformity.
Specications set by the NTSA
showed that the panels would be
fabricated using steel frames and
will be partly branded with road
safety messages.
For uniformity and to simplify
the work of partners to participate in
the provision of the pedestrian fence,
a standard fence is designed, said
NTSA in a statement released last
year regarding the project.
Each panel will measure 2.8 metres long and will be fabricated and
set up at an estimated cost of Sh56,
771. The panels will be 1.8 metres high,
making it dicult for people to climb
over them. The panels are meant to
Pedestrians
cross the
busy NakuruEldoret
Highway at
the Salgaa
blackspot
on January
4. Kenya had
668 road
deaths last
year, 497
of them
pedestrians.
SULEIMAN MBATIAH
According to the 2015 road performance report by NTSA, Mombasa Road was the most dangerous
claiming 251 lives despite the building of several footbridges along the
road last year.
Thika Road was second claiming 61 road users while 49 died on
Waiyaki Way.
An estimated 3,000 deaths from
road crashes occur annually in Kenya and about 40 per cent are pedestrians, according to NTSA.
The number of fatal crashes increased by 5.2 per cent to stand at
3,057, compared to 2,907 in 2014, according to the 2015 road performance report.
The statistics reveal that 1,344 pedestrians were killed, making up 44
per cent of all deaths last year.
Drink-driving
The road performance report said
that Saturday was the most dangerous day on Kenyan roads followed by
Sunday. High travel numbers, use of
unfamiliar routes and drink-driving
were said to be behind the number
of fatalities.
Speeding, jay walking, disregard
of laws, impunity, dangerous driving
and low levels of road safety awareness among road users were other
reasons cited by NTSA for the growing number of road fatalities.
Private cars overtook Public
Service Vehicles to cause the highest
number of deaths last year, accounting to 35 per cent of last years road
fatalities from 15 per cent in 2014.
Fatalities caused by PSVs dropped
twofold from 42 per cent in 2014 to
20 per cent in 2015.
In Kenya, the economic cost of
road crashes is 5.6 per cent of GDP
of Sh300 billion annually.
anjanja@ke.nationmedia.com
16
DISTRIBUTION | TRAVEL | FINANCING
DISTRIBUTION|
DISTRIBUTION
TRAVEL
| TRAVEL
| FINANCING
| FINANCING
VIEW Global comparisons surprisingly show North Americans can easily travel to the continent than Africans themselves
Fishing boat at Mombasa port. Foreigners benet from Africas marine resources. LABAN WALLOGA
Afica needs political goodwill

to fully exploit maine iches
from boundary disputes, conict over
resources, smuggling and human traffrican countries need political
cking.
Illegal, unregulated and unreported
will to implement strategies
aimed at beneting the nations
shing is estimated to cost sub-Saharan
from the vast marine resources along
Africa about $1 billion (Sh102 billion) a
year while thousands of tonnes of haztheir coastlines.
Many maritime practitioners and obardous waste are dumped at sea.
servers and analysts alike are unanimous
Although the continent has more
that a lack of political will remains the
than 100 ports, many of them operate
biggest barrier to harnessing the Africas
below capacity. In terms of world shipmarine resources, a development that
ping stake, African-owned ships account
has left the eld open to exploia mere 1.2 per cent of the
tation by foreign rms and even
worlds shipping.
Much of
terrorist groups.
Much of Africa lacks
Afica lacks
Indeed the African states
a maritime culture and is
a maitime
blind to the oceans imporneed to wake up and address
cultue and
tance to its development,
maritime threats as well as develop their maritime economies
and consequently, it leaves
is blind to
that have potential to earn trilothers to prot from its rich
the oceans
lion of dollars a year and genermarine resources.
impotance
ate millions of jobs.
There are two conThe inability of the African
tinental strategies that
seek to create a paradigm
countries to recognise the vast
economic opportunities oered by their
shift. One is Africa Union strategy known
sea boards can only be described as sea
as Agenda 2063 that regards the maor ocean blindness.
rine economy as a major contributor to
growth. The other one is Africas InteIf you feel this judgment is harsh,
grated Maritime Strategy 2050 (AIMS
consider these facts: thirty-eight African countries have a combined coast2050) that recognises the vast wealth
line of more than 26,000 nautical miles
creation potential of Africas oceans,
(47,000 km), 90 per cent of Africas trade
lakes and rivers.
is seaborne, shing contributes to food
AIMS 2050 was adopted in 2014,
security for more than 200 million Afand cover shing, oil and gas, security,
ricans and vast oil and gas potential lies
piracy, pollution, biodiversity, transport
o the coast.
and harbours. It also calls for marine
This is a blue economy that is undereducation and development of an Afrideveloped and threatened, as African
can ship-building industry.
states lack the ability to monitor and
AIMS proposes a combined African maritime zone, and prevention of
secure their waters.
pollution and piracy. It seeks capacity
Whereas the continent has recently
developed a feasible strategy to protect
building in marine defence, scientic
and benet from its oceans, what it badly
research, tourism, sheries, maintelacks is political will and committed renance and building of harbours, and a
sources to make it happen. Africas seas
pan-African eet.
should contribute to economic and enBut all of us need to take cognizance
that we, people of Africa, cant protect
vironmental security. It is unfortunate
our sh, stop pirates or build a maritime
that all too often the maritime story
economy by waving a strategy. African
about Africa is frequently that of stolen resources, drowning refugees and
governments must show political will,
missed opportunities.
identify priorities and start delivering
Sea piracy remains a threat, while
on the maritime strategy.
drug smuggling and illegal shing are
Mr Mwangura is a shipping sector
increasing. Additional threats come
analyst.
BY ANDREW MWANGURA
MOMBASA PORT WEEKLY
TRAVEL
OPINION
East Afica tops

anking of states with
smooth tavel access
BY ALLAN ODHIAMBO
AND ANNIE NJANJA
espite the potential of improving

trade and investment through seamless borders, Africa remains a laggard
in adopting the open-visa policy concept.
A newly published index by the African
Development Bank(AfDB) shows movement
remains heavily curtailed with Africans still
needing visas to travel to over half of the continent.
Analysts say seamless borders can help to
plug skills gaps in the labour market, promote
entrepreneurship, diversify the economy, add
value to services, or whether it is to attract
investment and boost competitiveness.
Yet Africa largely remains closed, with
Africans still needing visas to travel to over
half of the continent. These headlines go
against the continents goal to truly become
one Africa. And still we know that it is the
free movement of people, together with the
free movement of goods, services and capital,
which is the lifeblood that will sustain Africas
integration, Akinwumi Adesina, President
African Development Bank Group says.
The AfDBs Africa Visa Openness Report
2016 index shows that the most visa-open
countries are found in East and West Africa
an indication of the huge challenges facing investors eyeing cross-border deals and
operations in the continent.
An estimated 75 per cent of countries in
the top 20 most visa-open countries are in
East or West Africa. By contrast, only one is
in North Africa and none are in Central Africa
are in the top 20 most visa-open countries.
East Africa has the bulk (45 per cent) of
the top most visa open countries including
Burundi, Comoros, Djibouti, Kenya, Rwanda,
Seychelles, Somalia, Tanzania and Uganda.
West Africa has the second largest cluster
(30 per cent) of the top most visa open countries including Burkina Faso, Cape Verde,
Gambia, Guinea-Bissau, Mali and Togo according to the index. The southern Africa
bloc is ranked third in terms of visa openness
in four countries that include Madagascar,
Mauritius, Mozambique and Zambia.
Overall, African countries are on average
more closed o to each other than open, making travel within the continent dicult. Data
shows that Africans need visas to travel to 55
per cent of other countries while Africans
can get visas on arrival in 25 per cent of other
African countries. The report also points out
that Africans dont need a visa to travel to 20
per cent of other African countries.
Global comparisons show that North
Americans have easier travel access to the

continent than Africans themselves. North
Americans, for example, require a visa to
travel to 45 per cent of African countries,
can get visas on arrival in 35 per cent of African countries and dont need a visa in 20 per
cent of African countries.
FREE MOVEMENT OF PEOPLE

IS NOT A REALITY ACROSS
AFRICA
Free movement of people is not a reality

across Africa. Central Africa and North Africa
are the most closed regions. Good results in
West Africa are due to the free movement of
persons protocol and in East Africa are as a
result of the high number of visa on arrival
policies, AfDB said.
aodhiambo@ke.nationmedia.com
anjanja@ke.nationmedia.com
SOURCE: AfDB
17
Fist phase of Sh26bn second containe

teminal set fo launch end of Febuay
he Mombasa port is set for a boost in capacity by end month when the contractor
hands over the rst phase of the Sh26 billion second container terminal to the Kenya Ports
Authority (KPA).
Phase one of the project entailed the construction of berths 20 and 21 measuring 220 metres
and 350 metres long with a capacity to handle
550,000 twenty-foot equivalent units (TEUs) of
containers annually.
The equipment for container handling operations at the new facility have already been delivered, including two ship-to-shore gantry cranes
and four rubber tyred gantries. The new terminal
will add an extra capacity to make the Mombasa
port overall container handling capacity at 1.75
million TEUs per annum. This is in line with KPAS
plans of expanding capacity ahead of demand.
Currently the port container throughput stand
at 1.075 million per year.
The second and third phase of the project, being funded by government of Japan through Japan International Cooperation Agency and the
Kenyan government, has already started. Once
completed the second container terminal will have
a capacity to handle 1.5 million TEUs of containers per year. Its operation will strongly reposition
Mombasa as a major maritime hub among the
large African ports.
Other major capacity expansion and eciency
enhancement programmes in the pipeline are the
relocation of the Kipevu oil terminal to suitable
550,000
The capicity of containers in twenty-foot

equivalent units Phase 1 of second container
terminal at Mombasa port, can handle.
area so that it can handle larger oil tankers, paving

of yards and equipment acquisition.
On the weekly port performance, port container
population as at February 10 stood at 14,451 TEUs
out of which 4,946 TEUs were ready for collection
while 4,140 were awaiting pick up orders. And 2,119
TEUs were empty containers, 1,620 were fully exports (nominated/un-nominated), transshipment
containers were 398 TEUs and at the G Section
there were 928 TEUs.
During the week February 4-10, the container
operations terminal handled seven vessels with
18,806 TEUs of containers. During the week, imports population breakdown was 4,454 TEUs local
cargo, and 4,141 TEUs was transit cargo.
Uganda continued to dominate the transit market share with 3,053 TEUs followed by South Sudan
with 301 TEUs then Tanzania 279 TEUs followed
by Rwanda with 266 TEUs. Containers to Democratic Republic of Congo were 169 TEUs, Somalia
31 TEUs, Burundi 19 TEUs and Ethiopia 23 TEUs.
Those delivered by road were 6,000 TEUs while
480 TEUs were discharged by rail.
- KPA
17
DISTRIBUTION|
DISTRIBUTION
TRAVEL
| TRAVEL
| FINANCING
| FINANCING
MOMBASA PORT WEEKLY
TRAVEL
ly travel to the continent than Africans themselves
Fist phase of Sh26bn second containe

teminal set fo launch end of Febuay
he Mombasa port is set for a boost in capacity by end month when the contractor
hands over the rst phase of the Sh26 billion second container terminal to the Kenya Ports
Authority (KPA).
Phase one of the project entailed the construction of berths 20 and 21 measuring 220 metres
and 350 metres long with a capacity to handle
550,000 twenty-foot equivalent units (TEUs) of
containers annually.
The equipment for container handling operations at the new facility have already been delivered, including two ship-to-shore gantry cranes
and four rubber tyred gantries. The new terminal
will add an extra capacity to make the Mombasa
port overall container handling capacity at 1.75
million TEUs per annum. This is in line with KPAS
plans of expanding capacity ahead of demand.
Currently the port container throughput stand
at 1.075 million per year.
The second and third phase of the project, being funded by government of Japan through Japan International Cooperation Agency and the
Kenyan government, has already started. Once
completed the second container terminal will have
a capacity to handle 1.5 million TEUs of containers per year. Its operation will strongly reposition
Mombasa as a major maritime hub among the
large African ports.
Other major capacity expansion and eciency
enhancement programmes in the pipeline are the
relocation of the Kipevu oil terminal to suitable
550,000
The capicity of containers in twenty-foot

equivalent units Phase 1 of second container
terminal at Mombasa port, can handle.
area so that it can handle larger oil tankers, paving

of yards and equipment acquisition.
On the weekly port performance, port container
population as at February 10 stood at 14,451 TEUs
out of which 4,946 TEUs were ready for collection
while 4,140 were awaiting pick up orders. And 2,119
TEUs were empty containers, 1,620 were fully exports (nominated/un-nominated), transshipment
containers were 398 TEUs and at the G Section
there were 928 TEUs.
During the week February 4-10, the container
operations terminal handled seven vessels with
18,806 TEUs of containers. During the week, imports population breakdown was 4,454 TEUs local
cargo, and 4,141 TEUs was transit cargo.
Uganda continued to dominate the transit market share with 3,053 TEUs followed by South Sudan
with 301 TEUs then Tanzania 279 TEUs followed
by Rwanda with 266 TEUs. Containers to Democratic Republic of Congo were 169 TEUs, Somalia
31 TEUs, Burundi 19 TEUs and Ethiopia 23 TEUs.
Those delivered by road were 6,000 TEUs while
480 TEUs were discharged by rail.
- KAA
18
DISTRIBUTION | TRAVEL | FINANCING
RVR opeations to be
audited afte glitch leaves
commutes standed
The two governments maintained
that RVR had failed to live up to exThe Kenya Railways Corporation (KRC) pectations nine years since it won the
plans to audit the operations of Rift Valley concession.
Railways (RVR) that runs the city comRVR won a 25-year contract to run
muter services following a glitch that the 2,352km Kenya-Uganda railway in
left hundreds of passengers in Nairobi November 2006 for the cargo business,
stranded on Monday.
and a ve-year contract for the passenKRC managing director Atenus Mai- ger unit.
na said the corporation had previously
But last year, RVR said it increased
raised concern over RVRs operations its cargo haulage to 1.883 million tonnes
amid rising complaints by customers on against the set target of 1.737 million in
key city routes.
the year to March, hence meeting the
We will carry out a comprehensive target set by two States.
Early this month, the KRC stepped up
review of the RVR as we seek to improve
train services within the city, we are go- the refurbishment of its ageing wagons
ing to work together with the
and rail tracks as it targets to acconcessionaire to see how best
commodate more commuters
to address the challenges, he
around Nairobi who are highly
said.
inconvenienced by trac gridCommuter and cargo train
lock on the roads.
Rift Valley
services around Nairobi were
The rm said it had refurRailways
grounded on Monday followwould like to bished more than 20 wagons of
ing a fault with the communi- apologise to all the commuter train that plies
its customes the Embakasi- Nairobi route
cation system that cut contact
who use the by xing lighting systems and
with individual trains, raising
commute
fears of collision.
hand rails for passengers.
tains
Passengers have been shunCommencement
ning commuter trains plying
RVR STATEMENT
Mr Maina said RVR has comEmbakasi, Ruiru, Kahawa and
mitted to replace its current
Kikuyu routes because of their
Internet Service Provider with a more poor state and numerous delays, despite the fact that train fares are half what
reliable one.
In a statement to news rooms on Mon- public service vehicles charge.
day, RVR said it regretted the inconvenThe delays and inconsistencies are
iences caused to its passengers following taking a toll on the companys revenue
the technical hitch.
with the number of passengers declinRift Valley Railways would like to ing.
apologise to all its customers who use the
While the commuter train passenger
commuter trains. There was a technical numbers keep uctuating, the KRC estiglitch that required our teams, both in mates that about 12,000 Nairobians use
Uganda and Kenya, to delay the com- the service daily.
mencement of our commuter services,
Cases of locomotives breaking enroute
its statement read.
are rampant and whenever the engines
RVR has been under pressure from develops mechanical problems, passenthe governments of Kenya and Uganda gers have to wait until a rescue engine
comes from the nearest station.
to improve its services.
BY GERALD ANDAE
A worker in a warehouse. Freight in Time intends to set up a warehouse within JKIA with new funds. FILE
Nowegian fund buys Sh1bn

stake in Kenyan feight m
GROWTH Investment by Norwarys Norfund will be used in expanding
Freight in Times courier and express services across the country

BY SANDRA CHAO-BLASTO
Kenya-based logistic rm,

Freight in Time (FiT), has received Sh1 billion in equity
nancing from the Norwegian government to help drive expansion in
eastern Africa.
The rm runs air, sea and road logistics services in eight countries including
Kenya, Uganda, Tanzania, Rwanda, Burundi, Ethiopia, Djibouti and South Sudan. It has oces in major airports, sea
ports and border points in the region.
The Norwegian government bought
the stake through its investment fund
Norfund, which has interest in the region.
To undertake the envisaged expansion, we needed to partner with a long
term investor that also could contribute
with professional competency and nonnancial support. Norfund is exactly the
kind of investor we needed, said FiT.
Sustainable enterprises
Norfund managing director Kjell
Roland said that the investment was
aligned with their strategy to contribute
to sustainable enterprises and economic
development in the agribusiness sector
value chain within the region.
A well-functioning logistics sector
Sh45 billion
The value of investments

by Norwegian government in
various sectors across the East
Africa region
plays an important role for most companies, not the least for the successful
East African vegetables and horticulture export business, and Norfund is
delighted to contribute to FiTs further
growth and success, he said.
Transit hub
Mr Shamit Shah, FiTs managing director said part of the money would be used
to expand their courier and express services business across the country.
We are looking forward to having a
warehousing facility at the Jomo Kenyatta International Airport (JKIA) that
will handle the courier, open up shops
in both Mombasa and Nairobi which
will act as pick up and drop points as
well as purchase a eet of delivery vans
and motorcycles, he said
Mr Shah said that by virtue of Kenya
being a transit hub for 17 African countries including the eight countries it
operated in, it was only viable for them

to invest in specialised temperature
controlled warehousing services that
has enabled them to handle time sensitive humanitarian and pharmaceutical
movements across the region.
Key gateway
We have been dealing with a lot of horticultural crops and pharmaceuticals in
the cargo we have handled and putting
up half of the money into expanding our
current controlled facilities complete
with vehicle eets will do well for the
business, he said.
Norfund focuses on three main
industries for investments renewable
energy, nancial institutions and agriculture and food industries.
They recently became the largest
shareholder in Equity Bank Group
and have stake in the Lake Turkana
Wind Project. They have invested an
estimated Sh45 billion in various sectors across East Africa.
Kenya is a key gateway to the region
in that its main Mombasa port handles
imports such as fuel and consumer
goods for Uganda, Burundi, Rwanda,
South Sudan, the Democratic Republic
of Congo and Somalia and exports of tea
and coee from the region.
schao@ke.nationmedia.com
Commuters wait to board a train at Nairobi Railway Station. FILE
19
MONEY & MARKETS

PRICES I RESULTS I DATA
Shilling outpefoms most Afican cuencies since stat of 2016

BY CHARLES MWANIKI
The Kenya shilling has outperformed

the majority of other African currencies
in their exchange rate to the dollar since
the beginning of the year.
The currency has appreciated to the
dollar by 0.5 per cent in the year-to-date
exchanging at 101.89 as per the Central
Bank of Kenya (CBK) indicative rate, making it the only East African currency rising
against the dollar this year.
The shillings stable opening to the year
has been brought about by benign dollar

demand in the market, as well as balanced
liquidity that has reduced volatility.
Bruising losses
Data from respective central banks shows
that the currencies of Tanzania, Uganda,
Rwanda and Ghana are all weaker to the
dollar this year, while the South Africa
Rand is only beginning to recover after
months of bruising losses to the dollar. Nigeria has been running a xed exchangerate policy since last year.
A Somali man with a wad of cash. FILE

Economists have projected a stable
rst half of the year for the shilling, with
reduced import side pressure due to the

falling oil price and better prospects for
tourism and agriculture inows.
The falling import cost of oil will help,
and other than infrastructure capital imports other import categories are trending sideways. The CBK has also boosted
its reserves well and will provide support
if needed, said CfC Stanbic economist
Jibran Qureishi in a presentation of the
rms 2016 economic outlook report.
The Ugandan shilling is down one
per cent in the year-to-date exchang-
Nigeia m buys
49pc Continental
Reinsuance stake
STRATEGY Step signals the lender to delve deeper into retail segment
Baclays set to stat

oeing agency
banking in Mach
at Sh1 trillion.
Under agency banking, nancial inBarclays Bank of Kenya plans to start
stitutions do not have to open branches
in areas where they are unrepresented
agency banking, which will make it the
but can contract third parties to oer
rst international lender to embrace
some of their services such as account
the model.
The bank is expected to start contractopening, balance enquiries, cash deposits
ing agents before the end of March. This
and withdrawals.
will also signal plans by Barclays, largely
Equity Bank had contracted 22,017
viewed as a corporate lender, to delve
agents as at end of September when it
deeper into retail business.
said that it had stopped recruiting new
We are quite serious about agency
agents in an eort to ensure protable
banking because we need to look at how
business to the existing ones. The bank
to take banking to our customers you
said agents were conducting more
can expect to see somethan half of its transactions,
thing there pretty soon,
being more than that done
said Barclays chief execuby ATMs and branch tellers
tive Jeremy Awori.
combined.
We ae quite
The entry of Barclays
KCB had over 10,000
seious about
into agency banking also
agents and Co-operative
agency banking Bank 8,700 as at end of Sepacts as a vote of condence to the model with
because we need tember.
international lenders havBanks have contracted
to look at how to businesses
ing taken a wait-and-see atsuch as supertake banking to markets, pharmacies, courititude since its introduction
in 2011.
ers, hardware shops and post
ou customes
oces as third party agents
Standard Chartered is
JEREMY AWORI, BARCLAYS
KENYA CEO
to provide cash-in cash-out
yet to take up the model
transactions and other services.
making it the only top tier lender yet
Mid-sized banks, which largely target
to do so.
corporate customers, such as the ComBanks have taken up the model to
boost of eciency resulting from savings
mercial Bank of Africa, NIC Bank and
associated with xed costs of opening
Chase Bank have signed with Post Bank
which has more than 99 branches across
and maintaining a new branch.
the country.
The Central Bank of Kenya (CBK)
Barclays Bank, which is celebrating
said 17 commercial banks had con100 years of operating in the country, has
tracted 39,871 agents as at end of Sepbeen expanding its revenue streams in
tember last year who had conducted
a bid to boost its bottom line which has
over 193.4 million transactions valued
ing at 3,410 units to the dollar, while the

Tanzanian shilling is down 1.4 per cent
at 2,180 units. The Rwanda Franc is 1.6
per cent down to the dollar at 759 units,
while in West Africa, the Ghana Cedi has
depreciated by 2.7 per cent to the dollar
exchanging at 3.88 units.
The rand, which has several times
slipped below its key psychological level
of 16 units to the dollar in recent months,
has rallied slightly on weak dollar demand
in South Africa to appreciate by 1.8 per
exchanging at 15.75 units.
BY GEORGE NGIGI
BY GEORGE NGIGI
Value of agency banking

transactions Sh-billion
The value has been rising since the start of

the business ve years ago and has now hit
the trillion shilling mark
Barclays Kenya chief executive Jeremy

Awori. DIANA NGILA
through its subsidiary Barclays Financial Services.
The subsidiary will also oer services
such as advisory on mergers and acquisitions, debt and equity issues.
Capital gains
SOURCE: CBK, STANDARD INVESTMENT BANK
grown at a slower pace than some of its

competitors resulting in its slide down
the prot ladder to rank fth from the
pole position 10 years ago.
Last month the lender started oering brokerage services for equities listed on the Nairobi Securities Exchange
Last year it opened bancassurance

services following change of law to allow international lenders to operate in
the insurance sphere.
In 2013 the bank stepped up its Treasury bonds dealing department in a bid to
book capital gains from trading government securities unlike previously when
it preferred a conservative position of
holding the paper until maturity.
Capital gains are booked from downward movement of interest rates, but expose lenders to losses whenever interest
rates move upwards.
gngigi@ke.nationmedia.com
Continental Reinsurance, which holds

a 3.5 per cent in the Kenyan reinsurance market, has sold a 49-per cent
stake to Nigeria-based African Capital
Alliance.
As a result of the sale, Continental
Res majority shareholding by Moroccan Saham has been diluted as more
investors look for a slice of African Insurance market.
Lagos-based Continental Re, which
has operated in Kenya since 2009 was
previously fully owned by Saham.
The new structure will position Continental Reinsurance favourably to bolster our strategic objectives , said Femi
Oyetunji, the group managing director
of Continental Reinsurance.
Moroccan Saham Group also operates in the Kenyan market after it acquired Mercantile Insurance in 2014.
Insurance penetration
Continental Re had prots of Sh179
million in the nine months ended September as per data from the Insurance
Regulatory Authority (IRA).
The insurance market in Kenya has
witnessed several corporate activities
as large players move into the country
looking to exploit returns from deepening insurance penetration.
International reinsurers are also positioning themselves to book business
from nascent oil and gas sector in Kenya
and the neighbouring countries owing to
the limited size of the local companies.
Kenyas reinsurance market is dominated by Kenya Re with an estimated
market share of 57 per cent followed by
East African Re.
Other reinsurers include Africa Re,
ZEP-Re, Swiss Re and Ghana Re.
20
MONEY & MARKETS
Fim eyes expatiates with Sh400,000 a month villas

HOUSING Developers are ocking to Kiambu
Mr Chege said the focus is now to target a big number of investors who are out
to tap the opportunities in real estate and
manufacturing sectors.
By diversifying its products, the Kenya
Women Micronance Bank hopes that
besides increasing its clients base, it will
also grow its bottom-line.
There is a huge potential in the real
estate as well as in the manufacturing
sector and these are some of the areas
we are eyeing in our diversication plan,
said Mr Chege.
We have also deepened our funding
in asset nancing, he said.
Road due to its close proximity to the city centre

the neighbouring social amenities.
The rent varies depending on the
New high-end rental villas targeting the
size of the houses where a four-bedroom
upper middle class and expatriates are
unit will cost Sh350,000 per month and
now open for occupation on Kiambu
the ve-bedroom one will be going for
Road for as much as Sh400,000 per
Sh400,000, said Martin Gatheca, who
month.
is one of the investors and
Funded by the Kenya
the contractor who oversaw the development to
Women Micronance Bank,
commonly known as Kenya
Thee is a huge completion.
Women Finance Trust (KWFT),
The project started 18
potential in the months ago and was fundthe project is owned by a coneal estate as
ed through a mixture of
sortium of local investors who
are seeking high returns in the
debt and members conwell as in the
lucrative real estate segment.
tributions.
manufactuing
The investors are operating
The Kenya Women
secto
under the name Hidden Creek
Micronance Bank lent
Limited.
Sh260 million to the
ANTHONY CHEGE, KENYA
The villas, named Hidden
project while members
WOMEN MICROFINANCE BANK
contributed Sh50 million,
Creek Homes, stand on three
OPERATIONS DIRECTOR
bringing the total cost to
and a half acres of land in the
Sh310 million.
Runda Palm area and come
Even though two units have been earwith an in-house oce area including
marked for sale, Mr Gatheca said the idea
furnished family rooms.
is not to sell all the houses.
Kiambu Road has of late become an
Out of the 14 units which are comattraction to many investors due to its
pletely done, we have outlined only two
proximity to the city centre, including
BY SIMON CIURI
Regional expansion
One of the Hidden Creek Homes villas on Kiambu Road. A unit is letting for Sh400,000 per
month. SIMON CIURI
units for sale where a four-bedroom unit
is going for Sh65 million while the vebedroom one is selling for Sh70 million,
Mr Gatheca told the Business Daily on
the sidelines of the ocial launch of the
project last Friday.
Anthony Chege, the operations director at Kenya Women Micronance Bank,
said funding of the project was in line with
its diversication plan having for long
relied on lending to small and medium

enterprises, mostly in agribusiness.
Sti competition in the banking sector
has forced dierent players to diversify
their market oerings to attract more
clients.
KWFT was initially set up to lend
money to women who could not access
funds from mainstream lenders. It later
widened the range across its networks.
The micro-lender said it had set aside Sh4

billion where 30 per cent will go to lending to small and medium enterprises.
The Kenya Women Micronance
Bank recently announced that it would
enter Rwanda and South Sudan markets
to challenge top-tier lenders such as Equity Bank, Kenya Commercial Bank,
CBA, I&M,CFC, and Cooperative Bank
who have already established their presence there.
The regional expansion plan is expected to be implemented by mid next year.
sciuri@ke.nationmedia.com
Kenya tops E. Afica with most

infastuctue pojects last yea
BY JOHN GACHIRI
Kenya had the highest number

of infrastructure deals in East
Africa last year on the back of
mega real estate projects and the
standard gauge railway, says a
report by nancial consultancy
Deloitte.
The Africa Construction
Trends report 2015 says that
there were some 61 reported infrastructure projects in the region worth Sh5.9 trillion ($57.5
billion), an amount nearly equivalent to the size of Kenyas gross
domestic product.
Kenya had 20 reported infrastructure deals, followed by
Ethiopia which had 12 projects
but Deloitte did not give a breakdown on the value of projects
per country.
The survey looked at reported infrastructure deals worth at
least Sh5 billion ($50 million)
that had broken ground by the
start of June 2015.
Deloittes report said the
growth in shopping malls, commercial oce development and
the rail project are the biggest
areas with the large construction
Standard gauge railway under

construction in Tsavo. FILE
works going on. There have also
been some changes in the retail
estate sector where countries
such as Kenya and Tanzania
are experiencing signicant
growth in retail, entertainment
and lifestyle facilities, modern
oce parks, and hotel space,
said the report.
The changes can be attributed to expansion in cities and a
growing middle class, high yields
in retail property rentals, technology innovation and sustainability with a drive toward green
and open spaces, growth of new
urbanism, increased foreign direct investment, and a shortage
of quality property
Similar report have also

found that retail space development in Nairobi has rapidly
increased over the last few
years driven by heavy consumer spending.
The Shop Africa 2016 report
by Knight Frank found that
Nairobi had the hottest retail
property market outside South
Africa.
Among the cities covered by
this report, Nairobi stands out
as a major focus for shopping
centre development. It is ranked
as the largest market by existing
shopping centre oor space and
it has the biggest development
pipeline, said the report.
Since the June 1, 2015 cuto
date there have been other mega
deals on the real estate sector
that have been announced such
as the construction of Avics African headquarters in Nairobi.
Chinese conglomerate Avic
announced that it would construct a 43-storey oce block
in Nairobi, a hotel with 35 oors
and a 25-storey apartment complex in the Westlands area of the
city. The project is worth Sh20
billion.
21
MONEY & MARKETS GLOBAL
New yuan loans climb to ecod

high in loose monetay policy
SURGE Lending spike attributed to increased injections by central bank
hinese banks armed with fresh

lending quotas extended a record
2.51 trillion yuan ($385.40 billion)
of new loans in January, far more than
markets had expected, suggesting Beijing
is keeping monetary policy loose to counter a protracted economic slowdown.
Economists polled by Reuters had
expected new yuan loans to surge to a
near seven-year high of 1.8 trillion yuan
in January, tripling from 597.8 billion yuan
in December.
Analysts attributed the lending spike
to increased injections by the central bank
ahead of the Lunar New Year holidays in
early February, a traditional tendency
among Chinese banks to front load
loans at the start of a year and companies reducing their exposure to foreigncurrency loans.
Chinese banks expanded their balance
sheet aggressively in the rst month of this
year, which implies implicit support from
the government to counter the economic
slowdown, said Zhou Hao, Commerzbank
Asia senior emerging markets economist
in Singapore.
Analysts also attributed the surge in
A Chinese bank worker counting 100-yuan notes at a bank in Hefei, in east Chinas
Anhui province . FILE
new loans to soaring demand for mortgages as property prices recover and government steps to fast-track infrastructure
projects to spur activity.
While economists have sometimes
speculated that big swings in Chinas credit
data were linked more to speculative activity, the latest data appeared to suggest solid
demand in the real economy. Medium-and
long-term loans to households were up 45
percent in January from the same period

a year ago while such loans to companies
jumped 73 percent.
Total social nancing, another important indicator of Chinas credit expansion,
rose to 3.42 trillion yuan in January from
1.82 trillion yuan in December. Part of that
may reect massive infusions of cash into
the banking system by the Peoples Bank
of China ahead of the long holiday to avert
any risks of a cash crunch. The PBOC injected 1.53 trillion yuan via its standing
lending facility (SLF), medium-term
lending facility (MLF) and pledged supplementary lending (PSL).
Some economists believe the PBOC is
currently favoring liquidity injections as a
policy tool rather than long-expected cuts
to its policy interest rate and bank reserve
ratio requirements (RRR), which authorities worry could put further depreciation
pressure on the yuan currency.
According to sources, Zhang Xiaohui, an assistant governor at the PBOC,
has said the central bank would not rush
to cut the amount of cash banks must
hold in reserves, as doing so could send a
strong signal on policy easing. But while
the central bank may shun further cuts
in its main interest rate and RRR in the
near term, it may still have to ease policy
again, analysts say.
The PBOC has cut its policy rate six
times since November 2014 and reserve requirements several times, but both remain
relatively high, giving it plenty of room.
As capital outows continued, we believe
that the PBOC will still need to lower the
reserve requirement ratio (RRR) to permanently inject liquidity into the economy,
wrote ANZ economists in a research note,
noting that a further cut in RRR was still
possible in the rst quarter.
Bank lending usually spikes in China
in January as banks, which face limits on
how much they can lend each year, squeezes much lending as possible into the rst
month to protect their market share.
-REUTERS
this year after a record year for mergers

and acquisitions in 2015.
Since the beginning of the year, a
number of small publicly traded life sciences companies have been exploring a
sale, including Sagent Pharmaceuticals,
Alimera Sciences, XenoPort, MannKind
Corporation and Pernix Therapeutics,
Reuters has previously reported.
These ve companies have seen their
equity values plunge by an average of nearly 40 percent since September, causing
their price-to-2015-sales ratios to tumble
from an average of 5.3 to only 2.1.
Best-positioned to take advantage of
the sell-o are large life sciences companies with strong balance sheets. Specialty
pharmaceutical companies Mallinckrodt
and Horizon Pharmaceuticals, for example, have access to at least $2 billion each
in funding for potential deals and have
been exploring opportunities.
Mallinckrodt is assessing potential
deals across specialty brands and generics portfolios, Chief Executive Of-
Roughly a third of oil producers are at high

risk of slipping into bankruptcy this year as
low commodity prices crimp their access
to cash and ability to cut debt, according to
a study by Deloitte, the auditing and consulting rm.
The report, based on a review of more
than 500 publicly traded oil and natural
gas exploration and production companies
across the globe, highlights the deep unease
permeating the energy sector as crude prices
sit near their lowest levels in more than a
decade, eroding margins, forcing budget
cuts and thousands of layos.
The roughly 175 companies at risk of
bankruptcy have more than $150 billion
in debt, with the slipping value of secondary
stock oerings and asset sales further hindering their ability to generate cash, Deloitte
said in the report, released Tuesday.
These companies have kicked the can
down the road as long as they can and now
theyre in danger of kicking the bucket, said
William Snyder, head of corporate restructuring at Deloitte, in an interview. Its all
about liquidity.
While 95 percent of oil producers can
produce crude for less than $15 per barrel - a
testament to cost savings and technological
improvements since mid-2014 when only
65 percent of producers could produce near
that level - that may not be enough for some,
Deloitte found. -REUTERS
Bank of Japan launches negative

ates dubbed a failue by makets
Maket tumoil dives

small biotechnology
ms to big phama
Numerous small biotechnology companies have been all but shut out of the capital markets, leaving many with no choice
but to consider a sale to larger peers.
The Nasdaq Biotech Index is down
nearly 30 per cent since September, when
Democratic presidential candidate Hillary Clinton criticised drug companies
price gouging on Twitter and sparked
concerns about a government crackdown
on rising drug costs.
No regulatory crackdown on pricing
has materialized, but the sectors decline
has run unabated, compounded by broader stock market volatility.
Clearly this is a very challenging market for raising capital, said Mark Perrin,
chief executive ocer of InVivo Therapeutics, a small biotech company focused on
treating spinal cord injuries. He said he
plans to wait for valuations to rebound
before tapping the markets.
On the other hand, the market turmoil could help maintain dealmaking
momentum in the life sciences sector
One-thid of oil
ms face high
isk of bankuptcy
Concerns have been raised about rising

drug costs . FILE
cer Mark Trudeau told Reuters at the
JPMorgan Chase & Co healthcare conference last month.
For the next six months, your bank
might be named Pzer Inc, said Erik Gordon, a professor at the Ross School of Business at the University of Michigan.
Also likely to enter the fray are other
small drug companies, which may nd
that increasing scale through stock-forstock mergers is far less dilutive than
trying to raise equity in todays capital
markets. Pozen Inc and Egalet Corp could
serve partners for struggling companies
seeking a deal, industry sources said.
-REUTERS
The Bank of Japans negative interest

rates came into eect yesterday in a radical plan already deemed a failure by nancial markets, highlighting Tokyos
lack of options to spur growth as global
markets sputter.
The central bank, which announced
the shock decision on Jan. 29, will charge
banks 0.1 per cent for parking additional reserves with the BOJ to encourage
banks to lend and prompt businesses
and savers to spend and invest.
While the announcement briey
drove down the yen and buoyed Japanese share prices, markets quickly went
into reverse. Its getting clearer that Abenomics is a paper tiger, said Seiya Nakajima, chief economist at Oce Niwa, a
consultancy, referring to Prime Minister
Shinzo Abes policy mix of monetary easing, spending and reform.
The impact of monetary easing is
similar to currency intervention. The
rst time they do it, theres a huge impact. But as they repeat it, the impact
will wane, said Nakajima.
Though senior BOJ ocials were at
pains to say they had calibrated only a
minor impact on Japanese banks, their
stock prices plunged, contributing to a
global market sell-o, particularly in -
nancial shares. The problem was partly

bad timing, as global markets were already in a tailspin over concerns about
Chinas slowdown, U.S. rate hikes and
tumbling oil prices. But the reaction
leaves BOJ Governor Haruhiko Kurodas assertion that his policy is having
its intended eects looking increasingly
threadbare.
It seems as though the BOJs action triggered the market moves, said
Yoshinori Shigemi, global market strategist at JPMorgan Asset Management.
But a better explanation would be that
concerns elsewhere overwhelmed the
BOJ action.
In the 11 days since the BOJ boards
announcement, the benchmark Nikkei
index has fallen 8.5 per cent, despite a
sharp rebound on Monday, while the
yen has climbed 6.5 per cent against
the dollar.
Japanese bank shares have slumped
by as much as 30 per cent as they are unlikely to pass on negative rates to savers,
who already get negligible interest on
their deposits but would baulk at paying
to save. Negative rates could push down
bank operating prots by 8-15 per cent,
Standard and Poors said.
-REUTERS
22
MARKET DATA
Agro Commodities Market
Early Morning wholesale commodity prices Date 15.02.2016
COMMODITY
Unit
Kg
Code
CEREAL
Dry Maize
Bag
90
20
Green Maize
Ext Bag
115
19
Finger Millet
Bag
90
41
Sorghum
Bag
90
42
Wheat
Bag
90
48
LEGUMES
Beans Canadian
Bag
90
4
Beans Rosecoco
Bag
90
5
Beans Mwitemania
Bag
90
7
Mwezi Moja
Bag
90
6
Dolichos (Njahi)
Bag
90
35
Green Gram
Bag
90
46
Cowpeas
Bag
90
45
Fresh Peas
Bag
51
27
Groundnuts
Bag
110
44
ROOTS & TUBERS
Red Irish Potatoes
Bag
50
29
White Irish Potatoes
Bag
50
30
Cassava Fresh
Bag
99
43
Sweet Potatoes
Bag
98
31
HORTICULTURE
Cabbages
Ext Bag
126
9
Cooking Bananas
Med Bunch
22
2
Ripe Bananas
Med Bunch
14
3
Carrots
Ext Bag
138
13
Tomatoes
Lg Box
64
32
Onions Dry
net
13
22
Kales
Bag
50
15
Spring Onions
Bag
142
23
Chillies
Bag
38
11
Cucumber
Bag
50
14
Capsicums
Bag
50
12
Brinjals
Bag
44
8
Cauliower
crate
39
10
Lettuce
Bag
51
17
FRUITS
Passion Fruits
Bag
57
25
Oranges
Bag
93
24
Lemons
Bag
95
16
Mangoes Local
Bag
126
21
Mangoes Ngowe
Sm Basket
25
36
Limes
net
13
18
Pineapples
Dozen
13
28
Pawpaw
Lg Box
54
26
Avocado
Bag
90
1
OTHERS
Eggs
Tray
47
Commodities
Nairobi
Kisumu
Nakuru
Eldoret
2600
1800
6200
3500
3200
2400
6400
3200
2300
1800
5800
3150
2300
1350
6750
5850
3300
5800
5700
5500
5600
14000
9600
6800
2700
14300
7200
6800
5500
5500
4800
7200
7200
12600
7800
9000
2500
11000
8100
8550
4050
2290
11250
2100
2000
2200
3400
2600
2600
1800
2000
3500
3500
1800
1600
3500
1400
1400
500
600
2400
6000
1100
1100
2400
2000
2200
2300
2200
2000
2000
900
300
300
3500
7000
1040
1000
2600
2600
1400
2500
1500
1000
1750
5000
3000
2600
2500
1200
900
960
1700
2400
3000
3000
2000
2100
2000
5000
3600
2500
2500
500
2500
480
2200
2000
3420
3400
1680
2400
600
280
13000
8200
3000
11000
640
1200
1600
290
350
750
1800
3000
1000
750
1000
2500
300
1040
1680
1600
360
MSCI Emerging Markets Sector Indices

LAST NET.CHNG
324.87
-31.18
979.22
-53.43
119.06
-9.06
1,808.62
63.09
439.56
-43.57
198.83
-22.12
415.46
-43.68
333.18
-31.12
73.44
-2.26
1,478.13
-93.95
3,928.98
33.26
52.02
-7.36
1,972.16
24.86
431.22
-22.45
42,145.74 -2337.89
1,202.70
-247.79
105.14
-8.38
127.37
-14.12
1,136.19
10.11
5,540.72
86.26
941.64
-44.47
918.97
-85.98
508.21
-18.64
404.55
-45.76
571.61
-73.82
257.53
1.05
240.92
0.04
519.95
-37.00
620.26
-42.31
4,203.95
-42.55
41,231.81
659.07
582.36
-5.02
582.49
-65.98
1,539.69
24.67
1,156.87
-45.11
103.13
-8.45
1,294.71
-52.96
727.82
-81.36
786.71
12.13
1,097.65
-30.38
439.39
14.05
358.90
5.48
295.82
-9.67
315.36
-21.14
1,239.59
-16.17
PCT.CHNG
-8.76%
-5.17%
-7.07%
3.61%
-9.02%
-10.01%
-9.51%
-8.54%
-2.98%
-5.98%
0.85%
-12.39%
1.28%
-4.95%
-5.26%
-17.08%
-7.38%
-9.98%
0.90%
1.58%
-4.51%
-8.56%
-3.54%
-10.16%
-11.44%
0.41%
0.02%
-6.64%
-6.39%
-1.00%
1.62%
-0.85%
-10.18%
1.63%
-3.75%
-7.58%
-3.93%
-10.05%
1.57%
-2.69%
3.30%
1.55%
-3.16%
-6.28%
-1.29%
OPEN
324.87
979.22
119.06
1,808.62
439.56
198.83
415.46
333.18
73.44
1,478.13
3,928.98
52.02
1,972.16
431.22
42,145.74
1,202.70
105.14
127.37
1,136.19
5,540.72
941.64
918.97
508.21
404.55
571.61
257.53
240.92
519.95
620.26
4,203.95
41,231.81
582.36
582.49
1,539.69
1,156.87
103.13
1,294.71
727.82
786.71
1,097.65
439.39
358.90
295.82
315.36
1,239.59
HIGH
324.87
979.22
119.06
1,808.62
439.56
198.83
415.46
333.18
73.44
1,478.13
3,928.98
52.02
1,972.16
431.22
42,145.74
1,202.70
105.14
127.37
1,136.19
5,540.72
941.64
918.97
508.21
404.55
571.61
257.53
240.92
519.95
620.26
4,203.95
41,231.81
582.36
582.49
1,539.69
1,156.87
103.13
1,294.71
727.82
786.71
1,097.65
439.39
358.90
295.82
315.36
1,239.59
Nyeri
A grocery vendor
walks past a petrol
station in Nyeri.
A litre of petrol in
the town is retailing
at Sh88.06, diesel
at Sh69.43 while
kerosene is Sh41.17.
JOSEPH KANYI
1400
700
630
1400
6800
910
800
800
SOURCE: STATE DEPARTMENT OF AGRICULTURE. EMAIL MARKETINFO@KILIMO.GO.KE
NAME
CI-UAE
CI-AC AMER.
CI-ASIA PAC
CI-ARGENTINA
CI-BRIC
BRIC
BRIC GROWTH
BRIC VALUE
CI-BAHRAIN
CI-BRAZIL FREE
CI-CHILE
CI-CHINA FREE
CI-COLOMBIA
CI-EU
CI-EM
CI-EGYPT
CI-C.FE
CI-GOLD DRAGON
CI-HUNGARY
CI-INDON. FREE
CI-INDIA
CI-JOEG & MA
CI-KOREA
CI-KUWAIT
CI-SRI LANKA
CI-MOROCCO
CI-EM E.EUROPE
CI-EM FAR EAST
CI-EM ASIA
CI-EM EUROPE
CI-MEXICO FREE
CI-MALAYSIA FREE
CI-OMAN
CI-PERU
CI-PHILIPP.FREE
CI-PAKISTAN
CI-POLAND
CI-QATAR
CI-RUSSIA
SOUTH EAST ASIA
CI-THAILAND FREE
CI-TURKEY
CI-TAIWAN
CI-ISRAEL
CI-SOUTH AFRICA
Fuel pices
Global Commodity Prices
Unit Trusts
Effective date: 16th February 2016
Effective date: 15th February 2016
AGRO COMMODITIES
SOFTS
COMMODITY
CURRENCY LAST
CLOSE
356.05
1,032.65
128.12
1,745.53
483.13
220.96
459.14
364.30
75.70
1,572.08
3,895.72
59.38
1,947.29
453.67
44,483.63
1,450.49
113.52
141.49
1,126.08
5,454.45
986.11
1,004.95
526.85
450.31
645.43
256.48
240.88
556.95
662.57
4,246.49
40,572.74
587.38
648.47
1,515.03
1,201.98
111.58
1,347.67
809.18
774.58
1,128.02
425.33
353.42
305.49
336.50
1,255.76
NET CHNG
SUGAR NO5
USD
381.50
1.50
COFFEE
USD
134.25
-1.00
COCOA
USD
2825.00
-2.00
RUBBER
JPY
141.00
-1.00
FROZEN OJ CON1 USC
130.45
0.50
COTTON NO2
LOW
324.87
979.22
119.06
1,808.62
439.56
198.83
415.46
333.18
73.44
1,478.13
3,928.98
52.02
1,972.16
431.22
42,145.74
1,202.70
105.14
127.37
1,136.19
5,540.72
941.64
918.97
508.21
404.55
571.61
257.53
240.92
519.95
620.26
4,203.95
41,231.81
582.36
582.49
1,539.69
1,156.87
103.13
1,294.71
727.82
786.71
1,097.65
439.39
358.90
295.82
315.36
1,239.59
MONEY MARKET FUND
USC
59.44
0.54
GRAINS
CORN
USC
MAIZE EUR
363.00
4.25
0.75
CURRENCY
DAILY YIELD
OLD MUTUAL
SH
8.47%
8.81%
BRITISH AMERICAN
SH
12.11%
12.81%
UAP
SH
5.53%
5.68%
GENCAP HELA
SH
14.91%
15.77%
PAN AFRICA PESA+
SH
15.83%
17.15%
MADISSON
SH
14.33%
15.31%
CBA
SH
11.18%
11.73%
AMANA
SH
15.30%
16.42%
STANLIB
SH
13.16%
13.99%
EQUITY MONEY MARKET FUND
SH
10.68%
11.22%
ZIMELE
SH
10.34%
10.71%
ICEA
SH
14.26%
15.33%
16.41%
CIC
SH
15.45%
CURRENCY
BUY
SELL
GENCAP HAZINA
SH
107.3
111.19
SH
9.63
9.88
FIXED INCOME FUND
EUR
150.50
WHEAT
USC
463.75
6.25
CIC
ROUGH RICE
USD
10.86
0.10
BALANCED FUND
OILSEEDS
EFFECTIVE ANNUAL RATE
OLD MUTUAL
SH
145.14
BRITISH AMERICAN
SH
176.10
181.24
SH
98.02
101.58
58.36
154.55
SOY BEANS
USC
881.00
8.25
GENCAP ENEZA
SOY BEAN OIL
USC
31.74
-0.06
MADISSON
SH
55.31
PAN AFRICA CHAMA+
SH
11.01
11.35
127.01
127.01
CANOLA
CAD
469.60
2.20
PALM OIL
MYR
2264.00
-8.00
METALS & MINING

SYMBOL
CURRENCY
LAST
NET CHG
AMANA
STANLIB
SH
123.94
123.94
EQUITY BALANCED FUND FUND
SH
100.74
98.77
ZIMELE
SH
6.36
ICEA
SH
119.05
125.32
CIC
SH
11.82
12.37
369.75
6.17
EQUITIES FUND
100 OZ GOLD
USD
1,200.00
-39.10
OLD MUTUAL
SH
345.09
SILVER
JPY
55.00
0.00
OLD MUTUAL EA FUND
SH
140.55
148.75
BRITISH AMERICAN
SH
178.94
184.62
CBA
SH
144.65
144.65
GENCAP HISA
SH
110.87
114.89
HG COPPER
USC
2.07
0.04
PLATINUM
JPY
3,431
5.00
ALUMINIUM
CNY
10,985
230.00
MADISSON
SH
41.56
44.12
PALLADIUM
JPY
1,860
-42.00
AMANA
SH
124.98
124.98
STANLIB
SH
160.9
160.9
ICEA
SH
125.48
132.08
CIC
SH
12.05
12.68
OIL& GAS
SYMBOL
BOND FUND
CURRENCY
LAST
NET CHG
OLD MUTUAL
SH
97.39
99.70
BRITISH AMERICAN
SH
178.94
184.62
11.80
LIGHT CRUDE
USD
29.70
0.26
UAP
SH
11.80
NO 2 HT OIL
USD
1.08
0.01
PAN AFRICA PATA+
SH
9.69
9.99
BRENT CRUDE
USD
33.86
0.47
STANLIB FUND B1
SH
97.36
96.36
GAS OIL
USD
316.25
3.75
STANLIB FUND A
SH
97.08
97.08
ICEA
SH
90.62
91.53
NATURAL GAS
USD
1.92
-0.05
SHARIAH COMPLIANT
KEROSINE
JPY
32,900.00
-10.00
GENCAP IMAN
SH
106.26
111.86
SOURCE: THOMSON REUTERS
23
MARKET DATA
YESTERDAYS STOCK MOVEMENTS FOR SELECTED COMPANIES AT THE NSE
Bitish exit
fom EU is
not an option,
says Juncke
European Commission chief JeanClaude Juncker said yesterday that
a British exit from the European Union (EU) was not an option, saying
there was no plan B as Prime Minister David Cameron held key talks
in Brussels to avert a Brexit.
Cameron, who wants the EU to
carry out controversial reforms before he holds a referendum on Britains membership, held talks with
European Parliament chief Martin
Schulz to drum up support for his
proposals.
Schulz said there were concerns
to raise as Cameron arrived, pledging that the parliament would be an
honest partner in the talks.
The discussions are part of a frenetic merry-go-round of diplomacy
ahead of a crucial summit of all 28
EU leaders Thursday and Friday
which will be dominated by the
Brexit issue.
Juncker, who is also due to meet
with Cameron on Tuesday, refused
to even entertain the idea of Britain
leaving the bloc.
Kenya
1.60
0.00%
9:30 am
3:00 pm
Prev Close
Highest trade
Lowest trade
ARM
Kenya
Equity
Barclays
Mumias
1.60
1.70
1.60
31.00
-4.62%
9:30 am
3:00 pm
Prev Close
Highest trade
Lowest trade
32.50
32.50
31.00
Kenya
9:30 am
3:00 pm
12.65
12.70
12.50
Prev Close
Highest trade
Lowest trade
Kenol Kobil
9:30 am
3:00 pm
Prev Close
Highest trade
Lowest trade
3:00 pm
6.15
6.50
6.30
Prev Close
Highest trade
Lowest trade
39.75
0.00%
9:30 am
9.80
0.51%
Kenya
Kenya Airways
HF
Kenya
12.50
-1.19%
39.75
40.25
39.75
Britam
12.15
0.00%
Kenya
9:30 am
Kenya
9:30 am
12.15
12.30
11.95
3:00 pm
20.00
20.25
19.55
Prev Close
Highest trade
Lowest trade
CIC
Kenya
9:30 am
Prev Close
Highest trade
Lowest trade
Kenya RE
6.05
-0.82%
Kenya
3:00 pm
Prev Close
Highest trade
Lowest trade
19.95
-0.25%
Kenya
9:30 am
3:00 pm
Prev Close
Highest trade
Lowest trade
6.10
6.20
5.70
4.20
-2.33%
3:00 pm
4.30
4.25
4.10
19.25
-1.03%
9:30 am
3:00 pm
Prev Close
Highest trade
Lowest trade
19.45
20.00
19.10
Active member
If I would say now that we have a
plan B, this would indicate a kind
of willingness of the commission
to envisage seriously that Britain
could leave the European Union,
Juncker said.
So I am not entering into the
details of a plan B, because we dont
have a plan B, we have a plan A. Britain will stay in the European Union
as a constructive and active member
of the Union.
Cameron is due to meet the heads
of the two largest groups in parliament to deliver his message that the
reforms are in Britains and the blocs
best interests.
But he came under re after cutting back plans to meet all of the
parliaments political groups, with
Nigel Farage, leader of the anti-EU
UK Independence Party, accusing the
prime minister of being a chicken
for pulling out.
EU chief Donald Tusk warned
Monday that the EU was at a critical moment, needing to resolve
the Brexit stand-o and manage
Europes worst migrant crisis since
World War II at the same time.
The risk of break-up is real because this process is indeed very
fragile, Tusk said.
Cameron has four key demands,
including controversial restrictions
over four years on welfare payments
to EU citizens working in Britain.
- AFP
Tracking the markets: Benchmark Index (Latest Data) Africa

Africa
JSE All Share Index
USE All Share
Jul 15
Jan 16
NGSE All share
Tanzania
1,803.00
0.00%
49,628.95
-0.45%
Jul 15
DSE All Share
Uganda
South Africa
RSE All Share
Nigeria
Rwanda
2,385.43
1.48%
Jan 16
Jul 15
130.60
0.00%
24,654.18
-0.70%
Jan 16
Jul 15
Jan 16
Jul 15
Jan 16
World
Dow Jones
FTSE 100
New York
15,973.84
2.00%
Jul 15
Jan 16
Jan 16
16,054.43
0.20%
19,122.08
1.08%
Jul 15
Sensex
Tokyo
Hongkong
2,496.34
-0.48%
Jul 15
Nikkei
HangSeng
Europe
Jan 16
Jul 15
Jan 16
Mumbai
23,175.68
-1.61%
Jul 15
Jan 16
24
MARKET DATA
African Indices
Nairobi Stocks
NAME
NSE 20 Share Index
3,789.59
-0.13%
Nairobi
LOCATION
LAST
OPEN
HIGH
LOW
NSE 20 - SHR IDX
KENYA
3,789.59
-4.82
-0.13%
25,800.00
25,800.00
25,800.00
NSE 25 - SHR IDX
KENYA
4,058.43
0.34
0.01%
4,058.43
4,058.43
4,058.43
4,058.09
ZAMBIA
5,552.59
0.44
0.01%
5,556.10
5,556.10
5,552.59
5,552.15
SOUTH AFRICA
49,628.95
-223.00
-0.45%
49,844.08
50,226.37
49,526.38
49,851.95
UGANDA
1,803.00
0.00
0.00%
1,803.00
1,803.00
1,803.00
1,803.00
ZSE INDUSTRIAL
ZIMBABWE
99.80
-0.59
-0.59%
99.80
99.80
99.80
100.39
CFG INDEX
MOROCCO
19,496.69
52.14
0.27%
19,447.86
19,496.69
19,354.48
19,444.55
MALAWI ALL SHR
MALAWI
14,360.00
0.00
0.00%
14,360.00
14,360.00
14,360.00
14,360.00
NSE ALL SHARE/D
NIGERIA
24,654.18
-173.32
-0.70%
24,827.50
24,828.90
24,654.18
24,827.50
TANZANIA
2,385.43
34.87
1.48%
2,385.43
2,385.43
2,385.43
2,350.56
EGYPT
5,894.60
94.55
1.63%
5,804.58
5,901.29
5,804.58
5,800.05
TUNISIA
5,336.16
41.45
0.78%
5,300.40
5,343.32
5,298.97
5,294.71
RWANDA
130.60
0.00
0.00%
130.60
130.60
130.60
130.60
LUSE ALL SHARE INDEX

JSE ALL SHARE INDEX
ALSIUG
DSE ALL SHR IDX

EGX 30 IDX/D
TUN MAIN INDEX
RSE ALLSHARE IND
Oct15
140.24
-0.05%
Nairobi
Oct 15
Jan16
NSE 25 Share Index
4,058.43
0.01%
Nairobi
Oct 15
Jan16
Active Counters
Counter
Last fri
Prev fri
Price
Price
Shares
Change
Traded
Safaricom
15.70
15.75
-0.32%
10,656,800
KCB
39.75
39.75
0.00%
3,850,800
Home Africa
2.00
2.00
0.00%
989,900
Equity
39.75
39.75
0.00%
783,600
1.60
1.60
0.00%
398,100
Mumias
Gainers
Counter
Standard Grp
Last
Prev
Price
Price
net
Change
1.50
%
Change
26.50
25.00
Sameer
3.70
3.55
0.15
4.23%
KenGen
6.40
6.15
0.25
4.07%
Umeme
20.00
19.50
0.50
2.56%
Pan Africa
51.00
50.00
1.00
2.00%
6.00%
Losers
Counter
Last
Price
Prev
Price
net
Change
%
Change
Atlas Devt
1.60
1.75
-0.15
Liberty Kenya
15.15
16.40
-1.25
-7.62%
50.00
53.00
-3.00
-5.66%
Eveready EA
2.85
3.00
-0.15
-5.00%
ARM Cement
31.00
32.50
-1.50
-4.62%
EAPC
MARKET UPDATES
PCT.CHNG
CLOSE
3,794.41
Daily Share Report
Jan 16
All Share Index (NASI)
NET.CHNG
-8.57%
52 WK
HIGH
AGRICULTURAL
44.00
EAAGADS AIMS
383.00
KAKUZI
242.00
KAPCHORUA TEA AIMS
1248.00
LIMURU TEA AIMS
23.25
SASINI
435.00
WILLIAMSON TEA AIMS
AUTOMOBILES & ACCESSORIES
58.50
CAR & GEN
13.50
MARSHALLS
7.00
SAMEER
BANKING
17.85
BARCLAYS
141.00
CFC STANBIC
251.00
DTBK
56.50
EQUITY
44.00
HF
139.00
I&M HOLDINGS
65.50
KCB
27.25
NBK
67.00
NIC BANK
357.00
STAN. CHART.
23.00
CO-OP BANK
COMMERCIAL
12.10
ATLAS DEV & SUPT
6.90
EXPRESS (K) AIMS
HUTCHINGS BIEMER
11.50
KQ
LONGHORN PUBLISHERS AIMS 9.80
271.00
NATION MEDIA
47.50
STANDARD GRP
38.75
TPS EA
12.80
UCHUMI
52.00
WPP SCANGROUP
CONSTRUCTION & ALLIED
95.00
ARM CEMENT LTD
181.00
BAMBURI
187.00
CROWN BERGER
17.00
EA CABLES
70.00
EAPC
ENERGY & PETROLEUM
13.00
KENGEN
10.50
KENOLKOBIL
18.50
KENYA POWER
29.25
TOTAL
24.00
UMEME
INSURANCE
30.50
BRITISH AMERICAN
11.95
CIC INSURANCE
600.00
JUBILEE
22.75
KENYA RE
28.00
LIBERTY KENYA
141.00
PAN AFRICA
INVESTMENT
68.00
CENTUM INVEST.
4.20
HOME AFRICA GEMS
KURWITU VENTURES LTD GEMS1500.00
7.00
OLYMPIA
19.75
TRANSCENTURY AIMS
INVESTMENT SERVICES
NAIROBI SECURITIES EXCHG 27.50
MANUFACTURING & ALLIED
-A. BAUMANN AIMS
160.00
BOC GASES
900.00
BAT KENYA
28.00
CARBACID
355.00
EABL
5.00
EVEREADY EA
10.20
FLAME TREE GRP
125.00
K. ORCHARDS AIMS
3.30
MUMIAS
51.50
UNGA
TELECOMMUNICATION & TECHNOLOGY
17.90
SAFARICOM
REAL ESTATE INVESTMENT TRUST
23.75
STANLIB FAHARI I-REIT
GEMS
52 WK
LOW
YTD
%
PRICE (KSH)
FEB-16-2016
PRICE (KSH)
FEB-15-2016
DAILY
PRICE
CHANGE
DAILY
TRADED
SHARES
SHARES
ISSUED
MKT CAP.
KSHS MN
EPS
LATEST
12MNTH
P/E
TRAILING
P/B
TRAILING
DPS
LATEST
12MNTH
TOTAL
DIVIDEND
YIELD
18.10
215.00
98.00
756.00
12.70
162.00
-10.28%
-5.36%
-48.00%
-31.43%
-0.26%
-48.18%
24.00
300.00
102.00
744.00
19.75
199.00
24.00
300.00
104.00
744.00
19.50
199.00
0.00%
0.00%
-1.92%
0.00%
1.28%
0.00%
1,600
2,900
58,400
2,300
32,157,000
19,599,999
7,824,000
1,800,000
228,055,500
17,512,640
771.77
5,880.00
821.52
1,339.20
4,561.11
3,502.53
0.25
8.17
-5.82
-0.28
2.21
23.77
96.00
36.72
-17.53
8.94
8.37
1.92
2.03
0.29
3.62
0.34
0.27
0.00
3.75
5.00
1.00
1.25
40.00
0.00%
1.25%
4.90%
0.13%
6.33%
20.10%
35.50
10.80
0.45
-10.13%
-5.30%
-5.33%
35.50
12.50
3.70
35.50
12.50
3.55
0.00%
0.00%
4.23%
200
34,800
40,103,308
14,393,106
278,342,393
1,564.03
188.55
974.20
0.76
-11.90
-0.24
46.71
-1.05
-15.42
0.68
0.46
0.44
0.00
0.00
0.00
0.00%
0.00%
0.00%
11.10
71.00
176.00
36.50
18.80
95.00
37.00
13.50
35.00
183.00
15.85
-6.99%
-11.52%
5.88%
-0.63%
-10.11%
0.00%
-9.14%
-4.13%
-5.20%
-2.05%
-4.72%
12.50
73.00
200.00
39.75
19.95
100.00
39.75
15.25
41.25
192.00
17.15
12.65
73.00
198.00
39.75
20.00
100.00
39.75
15.10
41.00
191.00
17.15
-1.19%
0.00%
1.01%
0.00%
-0.25%
0.00%
0.00%
0.99%
0.61%
0.52%
0.00%
313,500
1,300
100
783,600
44,000
1,000
3,850,800
1,100
2,300
7,700
185,700
5,431,536,000
395,321,638
220,100,096
3,773,674,802
352,416,667
392,362,039
3,025,219,832
308,000,000
639,945,603
309,159,514
4,889,316,295
68,980.51
29,451.46
43,359.72
150,003.57
7,312.65
39,236.20
119,496.18
4,450.60
26,557.74
59,049.47
83,118.38
1.54
14.38
21.92
4.55
4.21
13.56
5.63
3.11
7.07
33.21
1.64
8.12
5.08
9.12
8.74
4.74
7.37
7.06
4.90
5.83
5.78
10.46
2.10
1.25
1.66
2.17
0.77
1.79
1.55
0.35
1.16
1.41
1.91
1.00
6.15
2.40
1.80
1.50
2.90
2.00
0.00
1.00
17.00
0.50
8.00%
8.42%
1.20%
4.53%
7.52%
2.90%
5.03%
0.00%
2.42%
8.85%
2.92%
1.45
3.80
4.05
3.70
130.00
24.50
22.50
6.40
22.50
-16.67%
-5.56%
0.00%
-12.24%
10.00%
-6.28%
-10.71%
-1.00%
-34.25%
-9.17%
1.60
4.25
20.25
4.20
4.75
180.00
26.50
24.75
6.90
26.75
1.75
4.25
20.25
4.30
4.95
179.00
25.00
24.75
7.20
27.25
-8.57%
0.00%
0.00%
-2.33%
-4.04%
0.56%
6.00%
0.00%
-4.17%
-1.83%
315,600
1,300
123,900
3,600
7,700
2,400
6,600
4,500
3,100
433,063,193
35,403,790
360,000
1,496,469,035
243,750,000
188,542,286
81,731,808
182,174,108
364,959,616
378,865,102
822.82
150.47
7.29
6,584.46
1,230.94
33,749.07
2,043.30
4,508.81
2,609.46
9,850.49
-2.53
-2.18
-18.34
-13.35
7.00
13.10
2.57
1.35
-10.85
1.50
-0.63
-1.95
-1.10
-0.31
0.68
13.74
10.31
18.33
-0.64
17.83
0.76
1.17
0.64
3.84
1.04
0.42
0.63
1.12
0.00
0.00
0.00
0.00
0.15
10.00
0.50
1.35
0.00
0.00
0.00%
0.00%
0.00%
0.00%
3.16%
5.56%
1.89%
5.45%
0.00%
0.00%
31.00
135.00
52.50
7.50
38.25
-22.16%
2.86%
-2.46%
-25.00%
13.37%
31.00
180.00
60.00
7.95
50.00
32.50
180.00
59.50
7.95
53.00
-4.62%
0.00%
0.84%
0.00%
-5.66%
3,800
88,800
100
33,300
7,600
495,275,000
362,959,275
71,181,000
253,125,000
90,000,000
15,353.53
65,332.67
4,235.27
2,151.56
4,500.00
3.01
9.80
9.01
1.37
79.52
10.30
18.37
6.66
5.80
0.63
1.39
2.17
1.05
0.83
0.93
0.60
12.00
1.75
1.00
0.00
1.94%
6.67%
2.92%
12.58%
0.00%
5.40
7.55
11.50
16.20
16.00
-13.38%
1.56%
-9.09%
-9.32%
-12.36%
6.40
9.80
11.95
16.55
20.00
6.15
9.75
12.00
16.55
19.50
4.07%
0.51%
-0.42%
0.00%
2.56%
126,700
124,200
82,800
100
2,198,361,456
1,471,761,200
1,951,467,045
175,028,706
1,623,878,005
13,959.60
14,055.32
23,320.03
2,896.73
31,665.62
5.24
0.74
3.81
2.26
1.34
1.22
13.24
3.14
7.32
14.93
0.16
2.04
0.45
0.19
2.34
0.65
0.20
0.30
0.70
0.90
10.16%
2.04%
2.51%
4.23%
4.50%
10.70
5.25
384.00
15.45
15.00
50.00
-6.54%
-1.61%
-2.27%
-7.38%
-15.90%
-16.67%
12.15
6.05
465.00
19.25
15.15
51.00
12.15
6.10
473.00
19.45
16.40
50.00
0.00%
-0.82%
-1.69%
-1.03%
-7.62%
2.00%
30,000
137,300
2,800
4,300
7,000
200
1,938,415,838
2,615,538,528
59,895,000
699,949,068
535,707,499
144,000,000
23,260.99
16,216.34
28,270.44
13,509.02
8,544.53
7,272.00
1.31
0.43
48.00
4.48
2.14
9.07
9.27
14.07
9.69
4.30
7.08
5.62
1.14
2.17
1.74
0.63
1.39
1.47
0.30
0.10
8.50
0.70
0.50
0.00
2.47%
1.65%
1.83%
3.64%
3.30%
0.00%
40.00
1.20
1500.00
3.90
5.70
-7.53%
-23.08%
0.00%
-10.42%
-27.88%
43.00
2.00
1500.00
4.25
6.00
43.00
2.00
1500.00
4.30
5.95
0.00%
0.00%
0.00%
-1.16%
0.84%
164,200
989,900
13,700
7,800
665,441,775
405,255,320
102,272
40,000,000
280,284,476
28,614.00
769.99
153.41
164.00
1,597.62
10.44
-0.04
-62.40
-1.04
-8.53
4.12
-50.00
-24.04
-4.09
-0.70
0.88
0.21
0.46
0.00
0.00
0.00
0.00
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
18.00
-7.07%
22.50
23.00
-2.17%
10,500
194,625,000
4,379.06
2.13
10.56
2.82
0.38
1.69%
91.00
670.00
12.80
245.00
2.35
5.70
97.00
1.45
30.50
0.00%
-1.96%
0.64%
-9.20%
2.20%
11.11%
-1.43%
-1.02%
0.00%
-2.22%
11.10
100.00
796.00
14.85
281.00
2.85
7.00
97.00
1.60
33.00
11.10
100.00
790.00
14.80
279.00
3.00
6.90
97.00
1.60
33.00
0.00%
0.00%
0.76%
0.34%
0.72%
-5.00%
1.45%
0.00%
0.00%
0.00%
400
16,600
325,800
46,700
3,000
398,100
-
3,840,066
19,525,446
100,000,000
254,851,988
790,774,356
210,000,000
161,866,804
12,868,124
1,530,000,000
75,708,873
42.62
1,952.54
79,900.00
3,784.55
222,207.59
588.00
1,060.23
1,248.21
2,448.00
2,536.25
-2.02
11.76
42.55
1.55
11.31
2.80
0.99
0.15
-3.04
5.27
-5.50
8.50
18.71
9.58
24.85
1.02
7.07
646.67
-0.53
6.26
#VALUE!
1.11
10.43
2.29
6.92
1.85
2.82
-54.80
0.18
0.53
0.00
5.20
42.50
0.70
6.00
0.00
0.00
0.00
0.00
1.00
0.00%
5.20%
5.34%
4.71%
2.14%
0.00%
0.00%
0.00%
0.00%
3.03%
12.60
-3.37%
15.70
15.75
-0.32%
10,656,800
40,065,428,000
633,033.76
0.80
19.63
5.97
0.64
4.08%
20.00
20.00
0.00%
27,500
180,972,300
3,619.45
0.00
0.00
0.00%
19.00
AIMS
MARKET DATA
MARKET DATA
Equities & Bonds
Kenya Bonds Implied Yields
Share Price Performance Scorecard

SCORECARD AS AT 16TH FEB 2016
NAME
A BAUMANN
ATLAS DEVPNT & SPPRT SERV
ATHI RIVER MINING
BAMBURI
BARCLAYS KEN
BAT KENYA
BOC KENYA
BRITISH AMERICAN
CAR & GENERAL
CARBACID INV
CENTUM INV
CFC STANBIC BANK
CIC INSURANCE
CO-OP BANK
CROWN BERGER
DIAMOND KEN
EA CABLES
EA PORT CEM
EAAGADS
EA AFR BREW
EQUITY BANK
EVEREADY EA
EXPRESS KEN
FLAME TREE HLDNGS
G WILLIAMSON
HUTCHINGS BIEMER
HOME AFRICA LIMITED
HOUSING FIN
I&M HOLDING
JUBILEE HLDS
KAKUZI
KAPCHORUA
KEN ORCHARDS
KENGEN
KENYA AIRWAYS
KENYA COM BK
KENOLKOBIL
KENYA POWER
KENYA RE
KURWITU
LIBERTY HOLDINGS
LIMURU TEA
LONGHORN
MARSHALL
MUMIAS SUGAR
NAIROBI SECURITIES
NATION MEDIA
NATL BANK KEN
NIC BANK
OLYMPIA CAPITAL
PAN AFR INS
SAFARICOM
SAMEER AFRICA
SASINI
STANLIB FAHARI I-REIT
WPP SCANGROUP
STANDARD GRP
STD CHART KEN
TOTAL KENYA
TPS (EA)
TRANSCENTURY
UCHUMI SUPER
UNGA GROUP
PREVIOUS
11.10
1.75
32.50
180.00
12.65
790.00
100.00
12.15
35.50
14.80
43.00
73.00
6.10
17.15
59.50
198.00
7.95
53.00
24.00
279.00
39.75
3.00
4.25
6.90
199.00
20.25
2.00
20.00
100.00
473.00
300.00
104.00
97.00
6.15
4.30
39.75
9.75
12.00
19.45
1500.00
16.40
744.00
4.95
12.50
1.60
23.00
179.00
15.10
41.00
4.30
50.00
15.75
3.55
19.50
20.00
27.25
25.00
191.00
16.55
24.75
5.95
7.20
33.00
CLOSE
11.10
1.60
31.00
180.00
12.50
796.00
100.00
12.15
35.50
14.85
43.00
73.00
6.05
17.15
60.00
200.00
7.95
50.00
24.00
281.00
39.75
2.85
4.25
7.00
199.00
20.25
2.00
19.95
100.00
465.00
300.00
102.00
97.00
6.40
4.20
39.75
9.80
11.95
19.25
1500.00
15.15
744.00
4.75
12.50
1.60
22.50
180.00
15.25
41.25
4.25
51.00
15.70
3.70
19.75
20.00
26.75
26.50
192.00
16.55
24.75
6.00
6.90
33.00
% 1D
0.00
-8.57
-4.62
0.00
-1.19
0.76
0.00
0.00
0.00
0.34
0.00
0.00
-0.82
0.00
0.84
1.01
0.00
-5.66
0.00
0.72
0.00
-5.00
0.00
1.45
0.00
0.00
0.00
-0.25
0.00
-1.69
0.00
-1.92
0.00
4.07
-2.33
0.00
0.51
-0.42
-1.03
0.00
-7.62
0.00
-4.04
0.00
0.00
-2.17
0.56
0.99
0.61
-1.16
2.00
-0.32
4.23
1.28
0.00
-1.83
6.00
0.52
0.00
0.00
0.84
-4.17
0.00
% 5D
0.00
-15.79
-6.06
2.27
-1.57
-0.50
2.04
0.83
-8.97
-0.34
-6.52
-8.75
0.83
0.88
0.00
3.09
-11.67
-8.26
0.00
0.72
-0.62
-1.72
0.00
-4.76
1.53
0.00
2.56
-0.25
0.00
-1.90
0.00
-17.74
0.00
-2.29
-5.62
-0.62
0.51
-0.83
-2.28
0.00
-6.48
0.00
-10.38
-4.94
-3.03
-4.26
0.00
-3.79
7.14
4.94
-12.07
-1.88
-3.90
-1.00
0.00
-1.83
-11.67
0.52
-1.49
-2.94
-6.25
-6.12
-12.00
% 1M
0.00
-21.95
-14.48
4.65
0.00
-0.50
9.89
3.85
-7.79
-2.94
-8.51
-8.75
4.31
1.78
-4.76
6.38
-20.10
16.28
4.35
6.04
-0.62
0.00
-6.59
-3.45
-14.96
0.00
0.00
-3.86
3.63
-4.12
-6.54
-54.46
-1.02
-2.29
-9.68
0.00
5.38
1.70
-7.23
0.00
-15.13
-31.43
-29.63
-3.85
0.00
-8.16
1.69
-8.96
-4.07
0.00
-8.11
-2.48
2.78
13.18
-3.61
-7.76
-3.64
-4.95
-2.93
2.06
-33.33
-23.33
8.20
% 3M
0.00
-56.76
-20.51
7.14
-9.09
2.98
0.00
-20.07
-10.69
-4.81
-3.37
-16.09
-3.97
-4.72
0.84
3.63
-23.56
21.95
-4.00
1.44
-3.05
-5.00
0.00
13.82
-43.94
0.00
53.85
-7.21
1.01
4.49
-8.81
-41.71
-1.02
-21.95
-7.69
-1.24
15.29
-10.49
-4.94
0.00
-13.18
-31.43
2.15
-4.58
6.67
-8.16
34.33
-3.79
-1.79
-6.59
-16.39
-2.18
5.71
9.72
#DIV/0!
9.18
-1.85
-13.12
-8.06
-13.91
-47.14
-16.87
-9.59
% 6M
0.00
-83.16
-51.18
16.13
-14.09
-0.50
-14.53
-32.50
-15.48
-12.13
-16.50
-22.75
-21.94
-12.05
-12.41
-0.99
-45.92
-7.41
-27.27
-8.47
-5.36
-19.72
-15.84
-11.95
-49.62
0.00
-14.89
-16.00
-5.66
-17.41
-12.79
-54.67
-3.00
-22.89
-30.00
-16.32
15.29
-28.23
9.38
0.00
-31.14
-31.74
-26.92
15.74
-17.95
11.11
0.00
-26.51
-17.09
-10.53
-27.14
4.67
-22.11
10.64
#DIV/0!
-31.41
-32.05
-31.43
-28.04
-25.56
-59.32
-1.43
-23.26
% 1Y
0.00
-86.55
-64.77
18.42
-25.37
-10.56
-32.43
-58.46
-31.07
-40.00
-31.20
-44.70
-45.98
-15.31
-62.26
-18.03
-49.52
-28.57
-39.24
-15.87
-25.70
-40.00
-32.00
-19.54
-33.67
0.00
-47.37
-50.74
-20.90
-13.73
13.21
-27.66
-11.82
-38.16
-58.82
-32.63
-3.92
-28.23
4.34
0.00
-38.16
-26.84
-48.92
5.04
-43.86
12.78
-32.08
-40.20
-34.00
-33.59
-56.78
5.72
-43.51
46.30
#DIV/0!
-39.20
-35.76
-44.19
-38.13
-33.11
-69.39
-40.00
-21.43
ISSUE
MATURITY
DATE
DATE
ISSUED
VALUE IN MNS
FEB 9, 2016
COUPON
(%)
TRADED
PREVIOUS
TOTAL VALUE
YIELD (%)
PRICE(%)
TRADED(KSH)
GOVERNMENT OF KENYA FIXED RATE TREASURY BONDS ABOVE KES.50 MILLION ONE YEAR BONDS
FXD 1/2015/1YR
29-SEP-15
26-SEP-16
24,260.65
19.062
102.3428
FXD 2/2015/1YR
26-OCT-15
24-OCT-16
20,482.75
22.954
103.8777
FXD 1/2014/2YR
24-MAR-14
21-MAR-16
19,976.40
10.803
100.0237
FXD 2/2014/2YR
26-MAY-14
23-MAY-16
20,130.15
10.793
99.9909
97.4749
TWO YEAR BONDS
FXD 3/2014/2YR
25-MAY-15
19-DEC-16
29,375.70
10.89
FXD 1/2015/2YR
23-JAN-15
20-FEB-17
23,592.15
11.47
101.0594
FXD 2/2015/2YR
29-JUN-15
26-JUN-17
18,746.80
12.629
97.5789
FXD 1/2016/2YR
25-JAN-16
22-JAN-18
20,153.75
15.76
13.95
FXD 1/2012/5YR
28-MAY-12
22-MAY-17
31,079.55
11.855
6.4271
FXD 1/2013/5YR
29-APR-13
23-APR-18
20,240.75
12.892
97.8412
FXD 2/2013/5YR
1-JUL-13
25-JUN-18
26,340.0
11.305
99.1527
FXD 3/2013/5YR
25-NOV-13
19-NOV-18
14,937.80
11.952
100.4719
FXD 1/2014/ 5YR
28-APR-14
22-APR-19
25,733.70
10.87
96.9751
FXD 2/2014/ 5YR
23-JUN-14
17-JUN-19
16,418.25
11.934
100.1528
FXD 1/2015/ 5YR
29-JUN-15
22-JUN-20
18,027.90
13.193
100.5915
FXD 2/2015/ 5YR
30-NOV-15
23-NOV-20
30,673.85
13.92
98.2796
102.1563
102.8786
TEN YEAR BONDS

FXD 1/2006/10YR
27-MAR-06
14-MAR-16
3 ,451.05
14
FXD 2/2006/10YR
29-MAY-06
16-MAY-16
5 ,028.10
14
102.8875
FXD 1/2007/10YR
29-OCT-07
16-OCT-17
9 ,308.80
10.75
99.388
FXD 1/2008/10YR
29-OCT-07
12-FEB-18
2 ,992.75
10.75
99.3434
FXD 2/2008/10YR
28-JUL-08
16-JUL-18
13,504.70
10.75
99.321
FXD 3/2008/10YR
29-SEP-08
28-SEP-18
4 ,151.60
10.75
99.2873
FXD 1/2009/10YR
27-SEP-09
15-APR-19
4 ,966.85
10.75
96.5948
FXD 1/2010/10YR
26-APR-10
13-APR-20
19,394.15
8.79
87.8868
FXD 2/2010/10YR
1-NOV-10
19-OCT-20
18,849.90
9.307
90.0522
FXD 1/2012/10YR
25-JUN-12
13-JUN-22
16,803.75
12.705
FXD 1/2013/10YR
1-JUL-13
19-JUN-23
29,289.80
12.371
FXD 1/2014/10YR
25-MAY-15
15-JAN-24
35,852.15
12.18
84.2871
25-SEP-06
11-SEP-17
4 ,031.40
13.75
105.0256
88.0675
15.05
87.6705
FXD1/2006/11YR
TWELVE YEAR BONDS
13-AUG-18
3 ,900.95
14
105.2139
28-MAY-07
13-MAY-19
4 ,864.60
13
105.6743
FXD1/2007/15YR
26-MAR-07
7-MAR-22
3 ,654.60
14.5
109.0397
FXD2/2007/15YR
25-JUN-07
6-JUN-22
7 ,236.95
13.5
94.8207
FXD3/2007/15YR
26-NOV-07
7-NOV-22
18,030.20
12.5
90.2944
FXD1/2008/15YR
31-MAR-08
13-MAR-23
7 ,830.90
12.5
100.607
FXD1/2009/15YR
26-OCT-09
7-OCT-24
9 ,420.45
12.5
98.3299
FXD1/2010/15YR
29-MAR-10
10-MAR-25
22,336.25
10.25
85.3325
FXD2/2010/15YR
25-APR-11
8-DEC-25
13,513.10
79.3778
FXD1/2012/15YR
24-SEP-12
6-SEP-27
21,089.45
11
FXD1/2013/15YR
25-FEB-13
7-FEB-28
42,138.45
11.2500
FXD2/2013/15YR
29-APR-13
10-APR-28
17,385.85
12
98.3982
13
100
100
97.91
2 ,402.09
12.5
100
100
FXD1/2008/20YR
30-JUN-08
5-JUN-28
20,360.95
13.75
106.2954
14,062.00
12.5
95.9476
FXD1/2011/20YR
30-MAY-11
5-MAY-31
9 ,365.80
10
79.8372
FXD1/2012/20YR
26-NOV-12
1-NOV-32
44,581.65
12
88.3006
28-JUN-10
28-MAY-35
20,192.50
11.25
82.2305
28-FEB-11
21-JAN-41
28,144.70
12
89.9403
2 ,917.10
1 ,250.80
3 ,899.22
2 ,100.77
2 ,100.77
13.5
12.75
13
12.5
TRADED
YIELD (%)
PREVIOUS
PRICE (%)
105.255
99.962
99.9539
1 ,480.60
1 96.50
1
13.25
13.6
99.1677
100
4 ,239.70
7 60.30
12.75
100
6 21.50
1 ,378.50
2 ,969.10
1 ,166.50
5 ,864.40
13
91.5465
8.5
94.4619
3 ,429.00
2 26.00
12.8
102.0606
6 ,000.00
13
92.2171
2 ,000.00
13
99.9807
5 ,514.50
12.5
94.2139
5 ,000.00
13
5 ,080.00
1 00,000,000
ELEVEN YEAR BONDS
28-AUG-06
COUPON
(%)
1 00,000,000
FIVE YEAR BONDS
FXD1/2006/12YR
BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE
ISSUE
MATURITY
ISSUED VALUE
DATE
DATE
IN MILLIONS
ISSUE NO.
CORPORATE BONDS
CENTUM BOND SENIOR UNSECURED FIXED RATE AND EQUITY LINKED NOTES
26-SEP-12
18-SEP-17
CTNB.BD.18.09.17/13.50
26-SEP-12
18-SEP-17
CTNB.BD.18.09.17/12.75
15-JUN-15
8-JUN-20
CTNB.BD.08.06.20/13
15-JUN-15
8-JUN-20
CTNB.BD.08.06.20/12.5
15-JUN-15
8-JUN-20
CTNB.BD.08.06.20/12.5V
CONSOLIDATED BANK OF KENYA LTD MEDIUM TERM NOTE PROGRAMME
30-JUL-12
24-JUL-19
CON.BD-FXD(SN)/2012/7YR
30-JUL-12
22-JUL-19
CON.BD-FXD(SBN)/2012/7YR
30-JUL-12
22-JUL-19
CON.BD-FR(SN)/2012/7YR
SHELTER AFRIQUE MEDIUM TERM NOTES
FXD 1/13/05YR
30-SEP-13
24-SEP-18
30-SEP-13
24-SEP-18
FR 1/13/05YR
MRM
FR (MRM) 2008/8YR
27-OCT-08
17-OCT-16
27-OCT-08
17-OCT-16
FXD (MRM) 2008/8YR
CFC STANBIC BANK SENIOR & SUBORDINATED BOND ISSUE
FR (CFC STANBIC) 2009/7YR
7-JUL-09
7-JUL-16
7-JUL-09
7-JUL-16
FXD (CFC STANBIC) 2009/7YR
KENGEN PUBLIC INFRASTRUCTURE BOND OFFER 2019
FXIB 1/2009/10YR
2-NOV-09
31-OCT-19
HOUSING FINANCE MEDIUM TERM NOTE
FXD (HFCK) 02/2012/7YR 2ND TRANCHE
22-OCT-12
14-OCT-19
26-OCT-10
2-OCT-17
FR (HFCK) 2010/7YR
26-OCT-10
2-OCT-17
FXD (HFCK) 2010/7YR
I&M MEDIUM TERM NOTE
FXD I&M-01/13/5.25
13-DEC-13
8-MAR-19
13-DEC-13
8-MAR-19
FRN I&M-01/13/5.25
BRITAM MEDIUM TERM NOTE
BRTB.BD.22/07/19-0037-13
22-JUL-14
15-JUL-19
UAP HOLDINGS MEDIUM TERM NOTE
UAP.BD.22.07.2019
28-JUL-14
22-JUL-19
NIC MEDIUM TERM NOTE
NIC.BD.09/09/19-0039-12.5
8-SEP-14
9-SEP-19
CIC INSURANCE GROUP LTDMEDIUM TERM NOTE
CIC.BD.22.07.2019
8-OCT-14
2-OCT-19
CFC STANBIC MULTICURRENCY MEDIUM TERM NOTE
CFCB.BD.08/12/21-0042-12.95
15-DEC-14
8-DEC-21
CBA FIXED MEDIUM TERM NOTE
CBAB.BD.14/12/20-0041-12.75
22-DEC-14
14-DEC-20
EABL FIXED MEDIUM TERM NOTE
EABB.BD.19/03/18-0043-12.25
23-MAR-15
19-MAR-18
CHASE BANK FIXED MEDIUM TERM NOTE
CHBD.BD.02/06/22-0044-13.5
10-JUN-15
2-JUN-22
REAL PEOPLE MEDIUM TERM NOTE
RPBD.BD.06/08/18-0046-13.65
10-AUG-15
6-AUG-18
10-AUG-15
3-AUG-20
RPBD.BD.03/08/20-0047-13.65
FAMILY BANK MEDIUM TERM NOTE
FBKB.BD.19/04/21-0049-13.75
26-OCT-15
19-APR-21
26-OCT-15
19-APR-21
FBKB.BD.19/04/21-0051-2.5
26-OCT-15
19-APR-21
FBKB.BD.19/04/21-0050-14
BONDS LISTED AT THE NAIROBI SECURITIES EXCHANGE
FXD1/2007/12YR
Corporate Bonds
FEBRUARY 15, 2016
25
FIFTEEN YEAR BONDS
85.2957
-
90.0657
TWENTY YEAR BOND
TWENTY FIVE YEAR BOND

FXD1/2010/25YR
THIRTY YEAR BOND
SDB 1/2011/30YR
INFRASTRUCTURE BONDS
IFB 1/2009/12YR
23-FEB-09
8-FEB-21
19,726.85
12.5
105.1593
IFB 2/2009/12YR
7-DEC-09
22-NOV-21
18,897.65
12
102.4081
102.6011
IFB 1/2010/8YR
1-MAR-10
19-FEB-18
15,908.05
9.75
98.5524
12.95
102.018
IFB 2/2010/9YR
31-AUG-10
19-SEP-19
32,871.55
83.7295
7 ,000.00
12.75
98.2486
IFB 1/2011/12YR
3-OCT-11
18-SEP-23
43,447.35
12
91.492
5 ,000.00
12.25
100.2003
IFB 1/2013/12YR
30-SEP-13
15-SEP-25
38,363.70
11
86.1395
92.8143
IFB 1/2014/12YR
27-OCT-14
12-OCT-26
35,480.90
11
IFB 1/2015/12YR
30-MAR-15
15-MAR-27
51,192.20
11
14.4087
92.9424
1 85,800,000
94.7367
IFB 1/2015/12YR
30-MAR-15
15-MAR-27
51,192.20
11
14.3587
89.5073
2 00,000,000
95.4568
94.7367
94.7367
IFB 1/2015/12YR
30-MAR-15
15-MAR-27
51,192.20
11
14
92.942
2 81,250,000
IFB 1/2015/9YR
14-DEC-15
2-DEC-24
25,119.55
11
4 ,822.40
13.25
2 70.30
1 ,363.90
13.65
13.65
1 ,297.10
6 00.70
1 21.00
13.75
14
86.0472
85.7549
26
MARKET DATA
Global Markets & Currencies
Currencies
Kenya Shilling
CURRENCY
US DOLLAR
STG POUND
EURO
SA RAND
KES / USHS
KES / TSHS
KES / RWF
KES / BIF
AE DIRHAM
CAN $
S FRANC
JPY (100)
SW KRONER
NOR KRONER
DAN KRONER
IND RUPEE
HONGKONG DOLLAR
SINGAPORE DOLLAR
SAUDI RIYAL
CHINESE YUAN
AUSTRALIAN $
SOURCE: CBK
BUY
101.73
147.09
113.48
6.42
33.41
21.42
7.27
15.05
27.69
73.51
102.91
88.82
11.96
11.76
15.18
1.49
13.07
72.59
27.12
15.65
72.61
DAILY
SELL
101.93
147.42
113.73
6.44
33.57
21.56
7.39
15.57
27.75
73.67
103.15
89.03
11.98
11.80
15.21
1.50
13.09
72.75
27.18
15.69
72.81
MEAN
101.83
147.25
113.60
6.43
33.49
21.49
7.33
15.31
27.72
73.59
103.03
88.93
11.97
11.78
15.20
1.49
13.08
72.67
27.15
15.67
72.71
US Dollar
BACKGROUND
EURO
JAPANESE YEN
BRITISH POUND
SWISS FRANC
AUSTRALIAN DOLLAR
SWEDISH KRONA
CANADIAN DOLLAR
CHINESE YUAN
NORWEGIAN KRONE
BOSNIAN MARK
DANISH KRONE
RUSSIA ROUBLE
TURKISH LIRA
ICELAND KRONA
INDIAN RUPEE
POLISH ZLOTY
CZECH KORUNA
HUNGARIAN FORINT
UKRAINE HRYVNIA
ISRAEL SHEKEL
ALBANIAN LEK
BULGARIAN LEV
SERBIAN DINAR
CYPRUS POUND
ESTONIAN KROON
GEORGIAN LARI
THAI BAHT
GIBRALTAR POUND
CROATIAN KUNA
KAZAKHSTAN TENGE
LITHUANIA LITAS
LATVIAN LATS
MOLDOVAN LEU
MACEDONIA DENAR
MALTESE LIRA
ROMANIAN LEU
SLOVAK KORUNA
SERBIAN DINAR
ARMENIAN DRAM
UAE DIRHAM
ANGOLAN KWANZA
BURUNDI FRANC
BOTSWANA PULA
CONGO FRANC
CAPE VERDE ESCUDO
DIJIBOUTI FRANC
ALGERIAN DINAR
EGYPT POUND
ETHIOPIAN BIRR
GHANAIAN CEDI
GAMBIAN DALASI
ERITREA NAFKA
GUINEA FRANC
KENYA SHILLING
COMORO FRANC
LIBERIAN DOLLAR
LESOTHO LOTI
LIBYAN DINAR
MOROCCAN DIRHAM
MALAGASY ARIARY
MAURITANIAOUGUIYA
MALAWI KWACHA
MOZAMBIQUEMETICAL
NIGERIAN NAIRA
RWANDA FRANC
SC RUPEE
ST HELENA POUND
SIERRALEONLEON
SAO TOME DOBRA
SOMALI SHILLING
SWAZILAND LILAGENI
TUNISIAN DINAR
TANZANIA SHILLING
UGANDA SHILLING
CFA FRANC
CFA FRANC
MAURITIUS RUPEE
SOUTH AFRICA RAND
ZIMBABWE DOLLAR
FTSE 100
Global Indexes
BID
1.12
113.80
1.44
0.99
0.72
8.46
1.38
6.51
8.61
1.73
6.68
77.32
2.96
127.11
68.41
3.94
24.16
277.50
26.75
3.91
123.54
1.75
59.99
0.40
11.70
2.48
35.60
1.44
6.82
359.45
2.85
0.51
20.03
54.79
3.41
4.00
21.55
108.91
494.10
3.67
157.08
1,538.80
0.09
917.00
97.61
176.80
105.63
7.83
21.07
3.95
39.07
16.80
7,585.00
101.70
441.55
90.00
15.75
1.38
9.71
3,160.00
339.00
741.21
48.27
198.60
741.00
12.76
1.50
4,040.00
21,251.00
613.00
15.75
2.01
2,183.00
3,410.00
586.57
586.78
35.45
15.77
378.00
ASK
1.12
113.83
1.45
0.99
0.72
8.47
1.38
6.52
8.62
1.77
6.68
77.40
2.96
127.43
68.42
3.94
24.19
277.80
26.85
3.91
124.04
1.75
60.19
0.40
11.71
2.52
35.61
1.44
6.82
359.75
2.85
0.51
20.13
55.36
3.42
4.00
21.60
109.16
498.10
3.67
158.43
1,588.80
0.09
937.00
98.71
178.50
105.98
7.83
21.47
3.96
40.07
17.30
7,785.00
101.90
442.55
91.00
15.78
1.39
9.78
3,202.00
347.00
759.98
48.47
199.18
752.00
13.01
1.50
4,140.00
22,574.00
620.00
15.79
2.01
2,193.00
3,420.00
590.57
591.78
35.65
15.79
381.00
CLOSE
INDEX (REGION/COUNTRY)
YTD
52 WEEK
CHG
% CHG
% CHG
HIGH
3-YR
LOW
% CHG
% CHG
GLOBAL
THE GLOBAL DOW (WORLD)
2102.99
32.84
1.59
-10
2,639.52
2,047.44
-17.8
0.1
THE GLOBAL DOW EURO (WORLD)
1776.82
43.22
2.49
-12.3
2,305.98
1,699.54
-15.9
6.3
DJ GLOBAL INDEX (WORLD)
278.22
3.68
1.34
-9.7
341.62
272.15
-15.5
0.7
DJ GLOBAL EX U.S. (WORLD)
189.62
5.1
2.76
-9.8
246.68
184.52
-18.3
-4.4
-2.9
ASIA PACIFIC
DJ ASIA-PACIFIC TSM (ASIA-PACIFIC)
1236.86
46.41
3.9
-11
1,619.39
1,190.45
-16.4
ALL ORDINARIES (AUSTRALIA)
4893.4
76.8
1.59
-8.4
5,954.80
4,816.60
-16.3
-1.1
S & P/ASX 200 (AUSTRALIA)
4843.5
78.2
1.64
-8.5
5,982.70
4,765.30
-17.7
-1.3
DOW JONES CHINA 88 (CHINA)
231.31
-1.8
-0.77
-19.3
408.69
224.92
-18.6
-0.8
SHANGHAI COMPOSITE (CHINA)
2746.2
-17.3
-0.63
-22.4
5,166.35
2,655.66
-14.8
4.1
HANG SENG (HONG KONG)
18918.14
598.56 3.27
-13.7
28,442.75
18,319.58
-23.5
-6.9
S & P BSE SENSEX (INDIA)
23554.12
568
2.47
-9.8
29,593.73
22,951.83
-19.2
6.6
JAKARTA COMPOSITE (INDONESIA)
4740.73
26.33
0.56
3.2
5,523.29
4,120.50
-11
0.9
NIKKEI 300 (JAPAN)
262.39
19.58
8.06
-15.7
343.20
242.81
-11.5
11
NIKKEI STOCK AVG (JAPAN)
16022.58
1069.97 7.16
-15.8
20,868.03
14,952.61
-11
12.8
TOPIX INDEX (JAPAN)
1292.23
11.1
95.95
8.02
-16.5
1,691.29
1,196.28
-11.5
KUALA LUMPUR COMPOSITE (MALAYSIA) 1649.96
6.22
0.38
-2.5
1,862.80
1,532.14
-8.8
0.4
S & P/NZX 50 (NEW ZEALAND)
6034.28
19.64
0.33
-4.6
6,324.26
5,546.88
4.9
12.9
KSE 100 (PAKISTAN)
31928.15
463.99 1.47
-2.7
36,228.88
28,927.04
-5.5
21.5
PSEI (PHILIPPINES)
6692.58
38.13
0.57
-3.7
8,127.48
6,084.28
-14
0.9
STRAITS TIMES (SINGAPORE)
2607.9
67.95
2.68
-9.5
3,539.95
2,532.70
-23.9
-7.4
KOSPI (SOUTH KOREA)
1862.2
26.92
1.47
-5.1
2,173.41
1,829.81
-4.9
-2
COLOMBO STOCK EXCHANGE (SRI LANKA) 6266.17
-16.83
-0.27
-9.1
7,498.78
6,261.18
-14.2
2.4
WEIGHTED (TAIWAN)
8066.51
3.51
0.04
-3.3
9,973.12
7,410.34
-15.4
0.67
SET (THAILAND)
1288.4
11.91
0.93
UNCH.
1,608.04
1,224.83
-19.9
-5.4
STOXX EUROPE 600 (EUROPE)
321.76
9.35
2.99
-12
414.06
303.58
-14.6
3.8
STOXX EUROPE 50 (EUROPE)
2722.81
71.03
2.68
-12.2
3,591.47
2,566.26
-17
1.3
EURO STOXX 50 (EURO ZONE)
2833.87
77.71
2.82
-13.3
3,828.78
2,680.35
-17.5
2.7
EURO STOXX (EURO ZONE)
300.61
8.76
-12.9
392.35
284.92
-14.5
4.4
ATX (AUSTRIA)
2099.27
65.79
3.24
-12.4
2,681.44
1,957.05
-12.6
-4.4
BEL-20 (BELGIUM)
3298.59
94.93
2.96
-10.9
3,905.71
3,130.76
-7.4
9.2
PX 50 (CZECH REPUBLIC)
875.8
29.89
3.53
-8.4
1,058.40
845.90
-14
-4.4
OMX COPENHAGEN (DENMARK)
809.95
39.87
5.18
-10.7
923.55
728.97
11.1
18.6
OMX HELSINKI (FINLAND)
7568.92
199.29
2.7
-11.9
9,374.42
7,257.23
-13
6.3
CAC 40 (FRANCE)
4115.25
120.19
3.01
-11.3
5,268.91
3,896.71
-13.4
DAX (GERMANY)
9206.84
239.33
2.67
-14.3
12,374.73
8,752.87
-15.7
6.6
BUX (HUNGARY)
23065.93
360.64 1.59
-3.6
24,330.34
17,808.58
29.1
FTSE MIB (ITALY)
17041.82
526.95 3.19
-20.4
24,031.19
15,773.00
-19.5
1.1
AEX (NETHERLANDS)
403.96
12.1
3.09
-8.6
509.24
382.61
-12.7
5.6
ALL-SHARES (NORWAY)
580.87
17.25
3.06
-10.5
711.22
552.32
-13.1
3.8
WIG (POLAND)
44377.27
527.87
1.2
-4.5
57,379.45
42,152.70
-15.7
-1.5
PSI 20 (PORTUGAL)
4640.17
105.54 2.33
-12.7
6,324.88
4,460.63
-13.1
-8.8
EUROPE
RTS INDEX (RUSSIA)
707.24
17.34
2.51
-6.6
1,082.21
628.41
-21.2
-23.5
IBEX 35 (SPAIN)
8179.2
258.4
3.26
-14.3
11,866.40
7,746.30
-23.5
0.1
SX ALL SHARE (SWEDEN)
462.14
15.25
3.41
-8.5
564.90
435.21
-13.6
7.7
SWISS MARKET (SWITZERLAND)
7848.33
191.73
2.5
-11
9,526.79
7,496.62
-9.9
1.5
BIST 100 (TURKEY)
71008.09
70.69
0.1
-1
88,651.88
68,567.89
-17.5
-3.1
FTSE 100 (U.K.)
5824.28
116.68
2.04
-6.7
7,104.00
5,537.00
-15.1
-2.7
FTSE 250 (U.K.)
15728.1
296.79 1.92
-9.8
18,263.46
15,178.80
-6.7
5.1
DJ AMERICAS (AMERICAS)
442.28
0.27
0.06
-9.2
524.44
433.35
-14.2
3.9
MERVAL (ARGENTINA)
11454.47
178.08
1.58
-1.9
14,173.87
9,288.41
19.8
51.5
-11.5
AMERICAS
SAO PAULO BOVESPA (BRAZIL)
40092.89
284.85 0.72
-7.5
58,051.61
37,497.48
-20.8
S & P/TSX COMP (CANADA)
12381.24
...
CLOSED
-4.8
15,450.87
11,843.11
-18.9
-1.1
SANTIAGO IPSA (CHILE)
2935.21
9.7
0.33
-0.3
3,359.04
2,759.77
-10.4
-9.5
IPC ALL-SHARE (MEXICO)
43205.91
789.47
1.86
0.5
45,773.31
40,265.37
0.6
-0.7
CARACAS GENERAL (VENEZUELA)
15147.77
442.94 3.01
3.8
15,580.47
3,415.27
334.1
194.2
SOURCE: WSJ MARKETS
Global Indices
NAME
LOCATION
LAST
NET.CHNG
PCT.CHNG
OPEN
HIGH
LOW
CLOSE
DJ INDU AVERAGE
NEW YORK
15,973.84
313.66
2.00%
15,691.62
15,974.04
15,691.62
15,660.18
FTSE EUROTOP 100
LONDON
2,496.34
-11.93
-0.48%
2,508.26
2,529.39
2,494.24
2,508.27
XETRA DAX PF/D
FRANKFURT
9,173.68
-33.16
-0.36%
9,242.75
9,269.06
9,161.30
9,206.84
CAC 40 INDEX/D
PARIS
4,120.58
5.33
0.13%
4,157.30
4,157.30
4,115.50
4,115.25
FTSE MIB/D
MILAN
16,834.87
-206.95
-1.21%
17,182.16
17,187.41
16,816.46
17,041.82
SMI PR/D
SWITZERLAND
7,790.74
-57.59
-0.73%
7,886.74
7,904.43
7,782.29
7,848.33
HANG SENG INDE/D
HONG KONG
19,122.08
203.94
1.08%
19,013.74
19,260.67
18,974.60
18,918.14
NIKKEI 225 INDEX
TOKYO
16,054.43
31.85
0.20%
15,849.47
16,341.56
15,809.58
16,022.58
ALL ORDINARIES
AUSTRALIA
4,961.59
68.152
1.39%
4,893.40
4,961.60
4,869.70
4,893.44
STRAITS TIMES/D
SINGAPORE
3,450.14
47.85
1.41%
3,395.67
3,465.47
3,373.11
3,402.29
SSE COMPOSITE/D
SHANGHAI
S&P SENSEX/D
MUMBAI
SOURCE: THOMPSON REUTERS
2,837.41
91.2106
3.32%
2,758.58
2,840.62
2,758.58
2,746.20
23,175.68
-378.44
-1.61%
23,688.61
23,692.08
23,167.14
23,554.12
NAME
ANGLO AMERICAN/D
ASSOC.BR.FOODS/D
ADMIRAL GROUP/D
ABDN.ASSET.MAN/D
AGGREKO/D
ANTOFAGASTA/D
ARM HOLDINGS/D
ASHMORE/D
AVIVA PLC/D
ASTRAZENECA/D
BAE SYSTEMS/D
BARCLAYS/D
BRIT AM TOBACC/D
BR LAND CO/D
BHP BILLITON/D
BUNZL/D
BP/D
BURBERRY GRP/D
BT GROUP/D
CARNIVAL/D
CENTRICA/D
COMPASS GROUP/D
CAPITA PLC/D
CRODA INTL/D
CRH/D
DIAGEO/D
MAN GROUP/D
EVRAZ PLC/D
EXPERIAN/D
FRESNILLO/D
G4S/D
GKN/D
GLENCORE/D
GLAXOSMITHKLIN/D
HAMMERSON/D
HARGREAVES LS/D
HSBC HOLDINGS/D
ICAP PLC/D
IAG/D
INTERCONT HOTE/D
IMI PLC/D
INTERTEK GROUP/D
ITV/D
JOHNSON MATTHE/D
KAZ MINERALS/D
KINGFISHER/D
LAND SECS GROU/D
LEGAL & GENERA/D
LLOYDS BNK GRP/D
MEGGITT PLC/D
MARKS & SP./D
MORRISON SUPMK/D
NATIONAL GRID/D
NEXT/D
OLD MUTUAL/D
PETROFAC/D
POLYMETAL INT/D
PRUDENTIAL/D
PEARSON/D
RECKIT BNCSR G/D
ROYAL BANK SCO/D
RDS A/D
RELX/D
ROYAL DTCH SHL/D
REXAM/D
RIO TINTO/D
ROLLS ROYCE PL/D
RANDGOLD RES./D
RSA INSRANCE G/D
SABMILLER/D
SAINSBURY(J)/D
SCHRODERS/D
SCHRODERS NV/D
SAGE GROUP/D
SHIRE/D
STANDARD LIFE/D
SMITHS GROUP/D
SMITH&NEPHEW/D
SERCO GROUP/D
SSE PLC/D
STANDRD CHART /D
SEVERN TRENT/D
TATE & LYLE/D
TULLOW OIL/D
TESCO/D
UNILEVER/D
UNITED UTIL GR/D
VEDANTA RES/D
VODAFONE GROUP/D
WEIR GROUP/D
WOLSELEY/D
WPP PLC/D
WHITBREAD/D
LAST
372.20
3117.00
1697.00
223.90
858.50
436.60
897.05
213.00
426.80
4149.50
484.20
157.84
3801.00
676.50
702.10
1833.00
342.90
1203.00
455.50
3156.00
191.60
1210.00
1091.00
2760.00
1739.00
1806.50
155.50
70.16
1116.00
871.50
199.70
264.80
102.30
1408.00
560.00
1177.00
438.90
410.70
517.66
2304.00
804.50
2742.00
241.50
2329.00
120.00
330.70
1018.00
210.60
59.89
379.40
425.30
176.90
948.90
6875.00
164.50
731.00
602.00
1187.00
774.00
6419.00
245.10
1590.00
1159.00
1588.00
596.50
1859.50
614.50
5850.00
397.30
4143.00
247.50
2398.00
1869.00
566.00
3752.00
341.60
940.50
1094.00
79.70
1365.00
425.00
2102.00
550.00
178.40
177.20
3029.08
915.50
240.03
208.36
903.00
3503.00
1429.00
3785.00
CLOSE
393.05
3119.00
1700.00
228.80
863.50
442.80
893.00
213.30
428.10
4151.00
481.70
160.75
3775.00
678.50
693.60
1835.00
332.80
1209.00
455.45
3149.00
192.40
1205.00
1092.00
2767.00
1724.00
1809.00
157.70
71.20
1119.00
873.50
201.00
265.50
101.20
1411.00
559.50
1176.00
446.40
411.50
504.50
2299.00
807.00
2727.00
243.50
2316.00
119.25
331.20
1024.00
212.10
59.84
380.60
424.80
178.50
952.60
6860.00
165.80
734.50
603.50
1194.00
778.00
6371.00
246.30
1542.00
1162.00
1540.50
596.00
1851.00
615.00
6030.00
397.60
4138.00
247.20
2423.00
1890.00
566.50
3797.00
342.40
944.00
1095.00
79.55
1367.00
453.05
2111.00
553.50
178.60
178.80
3012.00
919.50
239.10
209.45
898.00
3505.00
1432.00
3789.00
NET.CHNG
-20.85
-2.00
-3.00
-4.90
-5.00
-6.20
4.50
-0.30
-1.30
-2.00
2.50
-2.95
26.00
-2.00
8.50
-2.00
10.10
-6.00
0.05
7.00
-0.80
5.00
-1.00
-7.00
15.00
-2.50
-2.20
0.05
-3.00
-2.00
-1.30
-0.70
1.10
-3.00
0.50
1.00
-7.50
-0.80
13.50
5.00
-2.50
15.00
-2.00
13.00
0.75
-0.50
-6.00
-1.50
0.05
-1.20
0.50
-1.60
-3.70
15.00
-1.30
-3.50
-1.50
-7.00
-4.00
48.00
-1.20
48.00
-3.00
47.50
0.50
8.50
-0.50
-180.00
-0.30
5.00
0.30
-25.00
-21.00
-0.50
-45.00
-0.80
-3.50
-1.00
0.15
-2.00
-28.05
-9.00
-3.50
-0.20
-1.60
17.50
-4.00
1.90
-1.15
5.00
-3.00
-3.00
-4.00
PCT.CHNG
-5.30%
-0.06%
-0.18%
-2.14%
-0.58%
-1.40%
0.50%
-0.14%
-0.30%
-0.05%
0.52%
-1.84%
0.69%
-0.29%
1.23%
-0.11%
3.03%
-0.50%
0.01%
0.22%
-0.42%
0.41%
-0.09%
-0.25%
0.87%
-0.14%
-1.40%
0.07%
-0.27%
-0.23%
-0.65%
-0.26%
1.09%
-0.21%
0.09%
0.09%
-1.68%
-0.19%
2.68%
0.22%
-0.31%
0.55%
-0.82%
0.56%
0.63%
-0.15%
-0.59%
-0.71%
0.08%
-0.32%
0.12%
-0.90%
-0.39%
0.22%
-0.78%
-0.48%
-0.25%
-0.59%
-0.51%
0.75%
-0.49%
3.11%
-0.26%
3.08%
0.08%
0.46%
-0.08%
-2.99%
-0.08%
0.12%
0.12%
-1.03%
-1.11%
-0.09%
-1.19%
-0.23%
-0.37%
-0.09%
0.19%
-0.15%
-6.19%
-0.43%
-0.63%
-0.11%
-0.89%
0.58%
-0.44%
0.79%
-0.55%
0.56%
-0.09%
-0.21%
-0.11%
LI E
COACHING
Oganise and
delegate wok fo
best esults Page 29
27
HEALTHCARE
Why State should help
build capacity of local
dug makes Page 30
H E A LT H
Diabetes in infants linked to apid weight gain

BABY CARE Nutritionists advise pregnant women to
work at cutting their weight before and after childbirth

BY SARAH OOKO
s your baby chubby? Enjoy the cuteness

and coo to the small round thighs and
stomach, but not for long. Findings from
a new study published in JAMA Paediatrics
reveal that weight increase during the rst
year of an infants life is associated with a
greater risk for type 1 diabetes.
For years, type 1 diabetes in children has
been linked to genetics, certain viruses or
extremely cold conditions.
However, researchers are now beginning
to make inroads into this grey zone of uncertainty with research linking weight gain
to the disease.
Specically, the ndings suggest that the
risk is severe among overweight children
below six months of age, making it the most
dangerous period for babies to be obese.
Mothers are being urged to ensure that
their children have ideal weights in various
development stages.
Deviations from the normal growth
curve should raise the alarm, especially in
instances where the child gains too much
weight too quickly.
To prevent weight gain in children gestational diabetes, which occurs in pregnant
women, should be promptly diagnosed and
eectively treated.
If left unchecked the condition causes
mothers to deliver big babies weighing
more than four kilogrammes. This increases the risk of childhood obesity and birth
complications.
Doctors now want mothers to undergo
four recommended check-ups before delivery and also be checked for diabetes.
New data from the recently launched
Kenya Demographic and Health Survey
2014 show that only 58 per cent of pregnant
women in Kenya visit antenatal clinics.
We would like diabetes to be included
in the list of routine tests conducted when
mothers countrywide go to health facilities to seek antenatal care services, said Dr
Nancy Ngugi, a consultant endocrinologist
at Kenyatta National Hospital.
Women who gain excessive weight before or during pregnancy also increase the
risk of their children becoming overweight
after birth.
Nutritionists advise mothers to work
at having healthy body weights before and
after birth.
Women should avoid overeating during
pregnancy with the common excuse that they
As a mothe, you have the

powe to inuence you
childs dietay pattens ealy
in life
MARY WANGUI, MOTHER OF A TWO-YEAR-OLD CHILD
are eating for two. Food that is enough for

you is enough for the baby, said Ms Gladys
Mugambi, head of the Nutrition and Dietetics Unit in the Ministry of Health.
She urged mothers to exclusively breast
feed their children for the rst six months
of life as it guards against weight gain.
Kenya has made great strides in breastfeeding with about 61 per cent of women
doing so, the Demographic and Health
Survey indicates.
Studies show that babies given formula milk are often over fed. Cow milk also
makes babies fat just as it promotes
rapid weight gain in calves.
During the weaning period, families are
advised to limit sugar sweetened drinks
and instead oer fruits, vegetables, lean
protein and whole grains.
Porridge can be fortied with milk and
given to the child without adding processed sugar.
Physical activity
As a mother you have the power to inuence your childs dietary patterns early in
life. I have never given my son processed
sugar. He doesnt know how sweetened
beverages taste. So he has no problem with
drinking sugar-free porridge. He is also accustomed to brown rice and indigenous
vegetables, says Mary Wangui, a mother
of a two-year-old child.
You had better start healthy from the
word go instead of changing diets when
the childs taste buds have already become
used to certain foods, she adds.
Mothers often soothe crying babies with
food even if they are not hungry. It is common to see women rushing for the feeding
bottle or breast milk any time a child cries.
Nutritionists warn that this habit causes
children to over-feed or develop craving for
food every time they are under duress.
I have learnt that if a child isnt hungry
then you neednt worry about food. Putting
them in a comfortable position, soothing
them with a calming hand or going for a
walk to change surroundings usually

calms the baby, she said.
For older children, physical activity
helps curb obesity and type 2 diabetes.
But busy parents who baby-sit their
children with music or TV to avoid
supervising or playing with them encourage sedentary lifestyles which in
turn result in weight gain.
For toddlers, apart from getting
diabetes, excess fat and calories lead
to obesity which delays crawling and
walking.
This compromises the childs
physical and mental development.
The JAMA Paediatrics research in-
volved 99,832 children from Norway

and Denmark where there is a high
diabetes burden.
It was the rst population-based
study providing evidence that weight
increase during the rst year of life
predisposes children to type 1 diabetes.
The researchers noted that the results could be taken as support for the
hypothesis that overweight children
have an increased chance of developing the disease.
sarahooko@gmail.com
Cases rising
Key facts about

type 1 diabetes
Type 1 diabetes is characterised
by high sugar levels as a result
of the pancreas inability to
produce insulin (a hormone that
regulates sugar amounts in the
body).
The disease is common among
children but doctors are also
raising the alarm over rising
cases of type 2 diabetes in
babies and adolescents. Type
2 diabetes is common among
adults and linked to lifestyle
changes.
Type 1 diabetes is
sometimes referred to as
juvenile diabetes as it is often
diagnosed in young children
and adolescents. But it can still
strike at any age.
Aside from chronic wounds,
typical symptoms of the disease
include feeling thirsty, tired
and passing urine frequently
particularly at night.
The condition can be
effectively treated through the
use of synthetic insulin injected
daily into the body.
Regular exercise and healthy
diets are also recommended
for proper management of the
disease.
If diabetes is left untreated,
the resulting high glucose levels
in the body can damage nerves,
blood vessels and vital organs
like the heart and kidneys.
28
Life: Health
Painless cicumcision method

encouages men to go fo cut
pecially in the April, August and
December school holiday period.
Many men delay circumcision for
fear of injections, surgery, stitches
and connement over the healing
period. But the PrePex procedure
sidesteps these. Instead two elastic
rings are placed on the foreskin, restricting blood and oxygen supply
until the foreskin tissue dries and
peels o in a weeks time.
During this period, one can go
about their business and only return to the hospital for the rings to
be removed.
Dr Jacob Odhiambo, the programme manager for male circumcision at the National Aids and STI
Control Programme (Nascop), said
the device has increased circumcision numbers in the country.
Device has great potential
A boy is circumcised at a Molo hospital, and (inset) PrePex rings. FILE
MALE HEALTH
Non-surgical circumcision, gains popularity

in Nyanza, seen as best bet to ght HIV
the number of men undergoing the
cut. The PrePex device is a set of
incent, a 25-year-old casu- two rings manufactured by Israeli
al worker, is patiently wait- company Circ MedTech and used
ing for his turn to face the in hospitals to circumcise males
knife at the Eastern Deanery Aids without using injections, anaesRelief Programme (Edarp) clinic thesia or surgery.
in Baba Dogo, KisJack Munene,
umu.
a counsellor at the
But the proceclinic,
counsels
The bloodless
dure will be dierthose about to be
pocedue
ent from what most
circumcised.
takes less than
Kenyan men go
Simon Wairioko,
15 minutes
through.
a nurse, does mediafte which the
cal tests to rule out
There will be no
knife and cutting insexually transmitpatient goes
volved in his circumted diseases, diabeback home and
cision. There will be
tes and blood clots
to his choes
among other conno bandages too.
Instead, rings will
ditions which may
be placed around his manhood and interfere with or complicate heala cream applied to numb the area ing. The bloodless procedure takes
instead of using an anaesthetic less than 15 minutes after which
the patient goes back home and to
drug injection.
Vincent will then be given pain his chores.
killers and leave for home and his
He can also shower, unlike
chores. The PrePex non-surgical cir- those who are surgically circumcumcision method introduced in cised. The Edarp clinic circumcises
Kenya a few years ago has increased between 15 and 20 men daily, esBY VERAH OKEYO
Dr Odhiambo said the device has

great potential in helping Kenya
tame new HIV infections as most
men prefer it to other methods of
circumcision.
The healing is faster and the
men are not conned to wait for
their wounds to heal, he said.
Mr Hagit Freud, a PrePex specialist, said the rings come in different sizes.
The procedure also reduces the
number of botched circumcision
cases, which often lead to hospitalisation and even death.
Such cases are caused by unsafe practices during traditional
circumcision ceremonies.
The non-surgical device was
introduced in sub-Saharan Africa
by the World Health Organisation
to reach out to uncircumcised men
and curb the spread of HIV/Aids.
Research carried out in Kisumu
and Rakai District in Uganda shows
that circumcision reduces the risk
of acquiring HIV by at least 50
per cent.
More than one million Kenyan
men have been circumcised under
the WHO PrePex campaign.
However, a majority of vulnerable men from the targeted region
who are sexually active; aged between 25 and 35 years, are yet to
be circumcised because of traditional beliefs, fear of pain and reluctance to stay away from work
while healing.
Kenya, Uganda and Rwanda are
among the 12 countries that have
adopted the non-surgical device.
The PrePex method is restricted
to males over 18 years. The device
is not applied on children as some
can remove it due to curiosity.
vokeyo@ke.nationmedia.com
Cooked sh. Protein foods slow stomach emptying, which means you stay full for
longer so youll tend to eat fewer calories the rest of the day. FILE
Perfect food portions

that keep men lean
When are the best times to eat carbs,
protein and fat, what should your portion
size be and what are your guideline daily
amounts? Choose wisely and you can eat
healthily around the clock.
Men have different daily nutritional
requirements to women, and below our
nutritionist has offered guidance and recipe
ideas for men seeking a balanced diet for
good health but what exactly is meant by
a balanced diet?
There are some simple rules to follow
like getting your ve-a-day, including three
servings of whole-grains and choosing more
sh, poultry and less red meat while opting
for low-fat dairy foods.
But thats not the whole story how
much should you be eating and when is
the best time to eat protein, carbs or fats?
Nutritional needs vary depending on your
sex, size, age and activity levels so use this
chart as a general guide only. Typically men
need more nutrients than women with the
exception of salt and bre.
Perfect Portions
Numbers and gures are all very well but
how does this relate to you? Personalise
your portions with our handy guide to nding the right serving size:
FOODS
Portion size
Carbs like cereal/rice/pasta/potato.
Your clenched st proteins like meat/
poultry/sh. Savouries like popcorn/crisps
two of your cupped hands. Bakes like
brownies two of your ngers.
Butter and spreads the tip of your thumb.
Breakfast
Whether your rst stop is the ofce or the
gym, adding protein to your breakfast is a
great way to rev up your metabolism if
you do exercise rst thing a protein breakfast helps promote muscle recovery and
repair. Eggs are an ideal choice because they
provide a good balance of quality protein
and fat, other options include lean ham, sh
like salmon or haddock, as well as low-fat
dairy foods. Protein foods slow stomach
emptying, which means you stay fuller for

longer so youll tend to eat fewer calories
the rest of the day.
If youre short of time in the morning a protein-rich breakfast neednt take any longer.
Top your morning toast with some scrambled eggs and when you do have a little
more time enjoy an omelette.
Mid-morning snack
Eating well in the morning is vital for balancing energy levels. The ideal is to eat little and often but you need to make every
snack work for you. That means choosing
snacks which satisfy your energy needs plus
supply extra benets like topping up your
ve-a-day. Try peanut butter and banana on
crackers .
Lunch
Make lunch a mix of lean protein and starchy
carbs. Carb-rich foods supply energy so
youll suffer from mid-afternoon slumps if
you cut them out. The key is to choose carbs
that produce a steady rise in blood sugar,
which means passing on sugary white
foods and going for high bre whole-grains,
which help you manage those afternoon
munchies. Whole-grains like wholewheat
and barley keep you satised for longer.
Opt for an open sandwich topped with lean
beef or pork, salmon, turkey or chicken with
plenty of salad or toast some whole-grain
bread and enjoy with baked beans.
Dinner
Dont curfew carbs, theyre low in fat, brerich and help you relax in the evening. Combine them with healthy essential fats which
your body can use overnight for growth and
repair. You can get these healthy fats from
oily sh like salmon, trout and mackerel as
well as nuts, seeds and their oils.
Fill half your plate with a riot of colour
choosing from a wide variety of vegetables
or salad, drizzle with a dressing made from
axseed or rapeseed oil and add meat, sh
or beans with a serving of brown rice, or
wholemeal pasta.
- BBC
29
Life: Health
Oganise and delegate

wok fo best esults
LIFE COACHING
DR FRANK NJENGA
work eciently. In fact, I

overwork myself. But I never
seem to have enough time to
nish my assignments or attend to
my family. My problem is failure to
manage my time. Kindly help.
our question does not make complete

sense in some respects. You tell us that
you work eciently and in the same
breath complain that you overwork yourself.
I do not know what work you do but at least
on the surface, there seems to be a measure
of contradiction in what you say.
If you are ecient in your work, then you
should be able to do what you set out to do in
the time allocated to those tasks.
If you do not complete the tasks on time,
then you have either worked slowly (ineciently) or too little time was allocated to the
tasks. Either way, you are not working optimally as you would like us to believe.
For many years, former President Mwai
Kibaki played golf, much to the amazement
of many of his critics who neither understood
the man nor the game.
To some, golf is a lazy mans game, played to
ll in the gaps after the indolent have nished
doing nothing! The truth however is that golf
is not played in spare time. Busy people spare
time to play golf. In his days as Finance minister and later as Vice President, both friends
Bottom Line
Exposure to short ashes of light at night
could help sleeping travellers adjust to
new time zones and avoid jet lag, according to US scientists.
The light beams travel through the
eyelids and this tells the brain to re-set
the bodys inner biological clock, the
Stanford researchers believe.
They tested the method in 39 volunteers and found it shifted a persons body
clock by about two hours.
An hour of the ashlight therapy was
enough to achieve this eect.
Peoples bodies synchronise to the
24-hour pattern of daytime and night
they are used to. And when they travel
across time zones to a new light-dark
schedule, they need to realign.
While most people can easily man-
and foes admit that Mwai Kibaki was a most

eective occupant of the two oces. Later as
President, many of his ministers conrm that
they were given time and space to exercise the
functions of their oces. Two lessons you can
learn from this story are about delegation of
duties, and planning of ones time.
When ministers were appointed to various dockets it was the belief that they had the
requisite skills to discharge the functions of
those oces. Until they proved otherwise, they
were left mostly on their own.
Insecure managers (I hope you are not one
of them) overwork themselves because they
do not delegate.
A secure manager with the skill of delegation will empower his team to work independently and consult him as need arises.
As long as the manager works within the
previously agreed budget and time lines, the
MD is free and available to do other things.
An insecure MD, on the other hand, expects managers to report back to him on a
daily basis.
Important ritual
So, the ritual of preparing daily, weekly, monthly and quarterly reports becomes as important
as chasing new business. Rather than being a
tool of management, report compilation becomes an end unto itself.
This style of management leads to the
kind of life you describe, in which you feel
overworked, overwhelmed and without time
to nish your work, (which is only to read reports)!
With this arrangement, your managers wait
for your comments on their reports from the
previous day before they can follow a new sales
lead, or hire a new accounts clerk.
Without your input, a new computer
cannot be bought for anew employee, and
neither can the nance department release

cheques that are due without your personal
authority. Minor repairs must be authorised
by you! There are many reasons for this style
of management but the most common has to
do with personality. It is possible, for example, that you are a person with an obsessional
personality. If that be the case, then no job is
done unless you have personally checked what
others have done.
In your system therefore, you are the nal
signatory to all the accounts. Before you sign
them o, all the supporting documents have
to be veried by you incase something was
missed out.
An MD of a medium sized company suffered a heart attack because of this management style. The management lacks the skills of
strengthening systems and ends up working
like you. Another common reason for the kind
of problem you now nd yourself in is when
you do not expend adequate time or energy
to recruit qualied managers. You might believe in saving company money by paying sta
low salaries. A poorly paid management team
is ill-motivated and makes you work longer
but not better. Many other reasons could also
come into play. It is possible that you start your
day without a clear plan of what you want to
achieve. Without a clear plan for the day, week
or month and the year, you will end up overworking and achieving little.
Just for the record, there are people who
are best described as lazy. They sit around hoping that the job will somehow get itself done
as they watch.
They go home at the end of the day wondering why they have achieved so little in life.
These are real people who live among us. Are
you one of them? In summary therefore, delegate, organise and prioritise work. Without
a clearly set out system of working, you will
soon burn out from poorly directed activities
with no measurable outcomes.
Exposure to ashes of light could help stop jet lag

age a long-haul ight across one or two
time zones, crossing several time zones
messes with the body clock.
Jet lag can leave travellers tired, irritable and disorientated for days.
As a remedy, some people take melatonin tablets, which mimic a hormone
released in the evening.
Some try phototherapy - light boxes
that simulate daylight.
But Dr Jamie Zeitzer and colleagues
at Stanford University School of Medicine believe sleeping in front of a strobe
light could work better.
They asked volunteers to go to bed
and wake up at the same times every day
for about two weeks. Next, they were
asked to sleep in the lab, where some
were exposed to continuous light and
A tired traveller. Jet lag can leave travellers tired, irritable and disorientated for
days. FILE
others a strobe light (two-millisecond

ashes of light, similar to a camera ash,
10 seconds apart) for an hour.
The ashing-light group reported
a nearly two-hour delay in the onset

of sleepiness the following night. In
comparison, the delay in sleepiness
was 36 minutes for the continuouslight group.
Dr Zeitzer calls his therapy biological hacking. Cells in the back of the eye
that detect the light send messages to
a part of the brain that sets the body
clock.
The light fools the brain into thinking
the day is longer than it really is, which
shifts the inner clock.
This could be a new way of adjusting much more quickly to time changes
than other methods in use today, Dr
Zeitzer said.
Flashing light was particularly powerful because it gave the light-detecting
cells at the back of the eye a chance to

recover or recalibrate in the darkness
between the ashes, he added.
Stuart Peirson, an expert in neuroscience at Oxford University, said: It is
great to see advances in this area being
translated into eective treatments.
Whilst drugs can be used to shift
the clock, light is readily available and
is what our bodies have evolved to respond to.
Im amazed that they got such a
dramatic eect.
You would normally have to sit in
front of a light box for several hours to
get an eect. The idea underlying this
is certainly based on solid biology.
- BBC
30
Life: Health
Why State should help build

capacity of local dug makes
TIMES CROSSWORD 25,061

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DOCTOR ON CALL
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EDWARD OMETE
olumnist Jaindi Kiseros take on the

need to support local manufacturing
capacity by oering home protection
last week in the Business Daily was spot on.
In our health sector not much of manufacturing goes on, save for some medicine and
hospital supplies. We otherwise import everything else.
Many of our pharma makers are still in the
early stages in comparison with established
global rms which have been on the scene for
hundreds of years.
Kikuyu based Universal Corporation Ltd employees pack medicine. Many of our pharma makers are
Most of them also lack the technical and still in the early stages when compared with established global rms. FILE
nancial muscle required to produce high-end
drugs. Most make basic drugs on licence with others and interacted with their managers. cal manufacturers good and can it work in a
one or two slightly advanced to the coveted Their sentiments are similar: more needs to liberal market era? The recent signing of deals
between giant multinational pharmas and
WHO certication.
be done if we are to build up our capacity.
But what form of support is needed to grow local health ocials, where the former will
Projections by Fanisi Capital, a local PE
local capacity? Two alternative supply generic drugs to public hospitals, is an
rm with investments in
approaches have to be consid- example of how not to go about the issue.
healthcare, paint a rosy picIt is also unlikely
ture for the future pharma inered: either we subsidise proGood as such a deal sounds, it does not
dustry. This is also supported
duction costs or we oer them a improve local manufacturers capacity. If
that any of the
by changing local epidemiolguaranteed market share.
anything, it has the potential to hurt them
foeign phamas
ogy, demographic and ecoAs it stands, the second in the long-term.
The foreign rms will now serve two marnomic trends meaning the
will manufactue generation managing directors are still facing stumbling ket groups, the original molecules and the
market can only grow.
thei low-end
As a rule high incomes and
blocks that existed when the generics market, indirectly elbowing-out
dugs locally
upward lifestyle mobility go
founders set up the rms dec- local manufacturers who serve the latter.
hand in hand with chronic
ades ago.
It is also unlikely that any of the foreign
diseases, thus pushing up
I am not an expert on eco- pharmas will manufacture their low-end
nomic matters, but one needs drugs locally. In the end if local rms cannot
consumption of high-end
only look at the plight of local sell the generics they produce, they will be
medicines.
A couple of years ago I visited Cosmos In- pharmacists to know that we are headed for forced to close their factories.
dustries, one of Kenyas older pharma manu- doom.
While still dominated by large multinationfacturers. Their history, as narrated by the then
They are the brightest of the doctors lot als, our boutique pharmas can thrive by prochairman and founder, was inspiring. Many and we spend so much training them only ducing on behalf of the giants. This is a model
Kenyan health entrepreneurs are driven by to end up dispensing medicine. In compari- we could push for. Otherwise 50 years from
the desire to see Wanjiku access aordable son their colleagues in the West are often in now we will still be importing basic drugs.
medicines and to stop importing everything. pharma research or manufacturing industries, Email: info@healthinfo.co.ke.
I have also had the opportunity to visit a few actively developing drugs. Is protection of lo- Twitter:@healthinfoK
TIMES 25,060
Health Bief
No safe way to suntan, health watchdog wans

There is no safe or healthy way to
get a tan from sunlight, new guidance from the National Institute for
Health and Care Excellence (NICE)
has warned.
The health watchdogs latest guidance also says an existing tan provides
little protection against sun exposure.
It recommends using at least factor
15 sun cream, with adults urged to use
6-8 teaspoons (35ml) per application.
Benets from building up vitamin D
from the sun have to be balanced with
the risks of skin cancer, it adds. It comes
as Hollywood star Hugh Jackman has

spoken out about his own experience
with skin cancer. The Australian actor
has had several sun-related cancerous
growths removed from his face in recent
years.
He posted a Facebook message urging his friends and followers to get regular skin checks and wear sunscreen.
Many adults in Britain have low levels of vitamin D and the NICE guidance
states that some exposure to sunlight
can help to build this up. NICE also says
it is not possible to get enough vitamin
D by sitting next to a closed sunny window, or from sunlight between October

and March in the UK. However, experts
stopped short of recommending a specic amount of time people should stay
out. In wide-ranging guidance they recommended: People expose their arms
and legs to the sun for short periods in
order to build up vitamin D
Babies and children, those with fair
skin or hair, people with lots of moles or
freckles and those with a family history
of skin cancer should take extra care in
the sun. - BBC
W A R E S
D IS C O M F IT
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IN T R O U B L E
P A N IC
T
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E A S I L Y
P R O S T Y L E
D
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I E
F
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S E V E N T E E N
D IR A C
E
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I G
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O
P IE C E
G A IT S K E L L
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L IT E R A T E
C L O C H E
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E X U B E R A N T
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E X E R C IS E D
T E N O R
SUDOKU 183
22
23
25
24
26
Across
1 Wise, were told, to wear long suit at
crime play (5,5,2)
9 Occasions 17 dn endlessly recalled (5)
10 Not pleased with information on
what you are doing (9)
11 The home teams passion coming to
the fore (8)
12 London borough others presumably
back? About time (6)
13 Direct argument about origin of this
plant (8)
15 Badger has entrance to sett across
a river (6)
17 Honour music-maker with a certain
appeal (6)
18 Pay attention, being unusually silent
before the beak (6,2)
20 Extractors out in 1972? (6)
21 Defrauding Poles involved in winter
sport (8)
24 Earnest fellows in a tizzy at rst after
trial (9)
25 Diagnostic aids bringing variable
increment for 22, say? (1-4)
26 See printing units head, being under
obligation (12)
SUDOKU PUZZLE
Down
1 Critical females odious missing
husband (7)
2 Noteworthy quality of pupils
resubmitted work? (14)
3 Votes in favour of the old quarters (5)
4 Cipher experts sneer terribly about
focus of 1972 war (8)
5 Lavish display run by the unruly (4)
6 Unenlightened old boys run out of
shrub (9)
7 Advise against direct action a union
nally organised (14)
8 Handsome youth lives south of a
river (6)
14 Great Tew, a curious target for a 1972
break-in (9)
16 What 20 did in 1972 (elect Heath to
protect energy?) (8)
17 Home Counties kid, one with Jewish
blood (6)
19 Stars, for example, appearing in
fathers country (7)
22 President re-elected in 1972 could
barely have this! (5)
23 Champion embraced by the Romans
(4)
184
How to play
Fill the grid so that every row, every column and every 3x3 box
contains 1-9.
You solve the puzzle with reasoning and logic and not
mathematical ability
Condent Wolfsbug head to Ghent

afte ending six-match winless un
CHAMPIONS LEAGUE German Cup holders defeated Manchester United in December
fL Wolfsburg head to Belgian league side Ghent

for tonights Champions
League last 16, rst-leg, with renewed condence after Germanys
Julian Draxler helped break their
six-match winless streak.
German cup holders Wolfsburg
powered their way into the knockout stages by beating Louis van
Gaals Manchester United 3-2 at
home last December to condemn the
Red Devils to the Europa League.
Germany midelder Draxler ran
riot while Brazilian defender Naldo
headed two goals to put Wolfsburg
in the last 16 of Europe for the rst
time in the clubs history.
But since beating United, the
Germans failed to win any of their
next ve games until Draxler scored
in Saturdays 2-0 win over Ingolstadt
to stay eighth in the Bundesliga.
The 22-year-old World Cup winner nished the move he started before defender Robin Knoche added
the second after the break.
Having been booed in losing at
Schalke the week before, Wolfsburgs victory gave the side muchneeded condence ahead of the trip
to Belgium.
The fans were right to criticise
us, said Draxler, who cost Wolfsburg 35 million euros ($39.4 million) from Schalke last August.
We hadnt shown for a while
what we could do.
Weve drawn a line under things
Wolfsburg defender Ricardo Rodriguez. The German team will play Belgian side
Ghent in a champions League tie tonight. AFP
now and got the three points we
needed.
But Wolfsburg coach Dieter
Hecking has warned his side to expect a much tougher test at Ghent
than Ingolstadt provided.
We mustnt make so many mistakes, said Hecking as 124 of his
sides 377 passes went astray last

Saturday.
We need more ball possession to
make the opponent chase after us.
Julian had his moment, he
looked dangerous in front of goal,
which is why we signed him, added
Hecking.
But he is also struggling for

form.
What applies to him also goes
for the whole team: we can still do
better.
Knoche is expected to start in
Ghent at centre-back for Naldo,
who is suspended after picking up
his third European booking in the
win over United.
Ghents 1-0 defeat to title rivals
Brugge cost them top spot in the
Belgian league a week ago to leave
them second.
But they warmed-up for Wolfsburg with a 2-0 win over MouscronPeruwelz last Friday thanks to goals
from Mbark Boussoufa and Danijel
Milicevic.
The Swiss midelder is doubtful with an ankle injury, but Ghent
need their top scorer in Europe with
Milicevic having scored three goals
in their six games.
Naldo expects his team to endure
a tough night at the Ghelamco Arena
as Gent try to make the quarter-nals fo the Champions League at
their rst attempt.
Theyre a team that wont lie
down, a team that always look for
goals, said Naldo.
They took out some big teams
along the way, like Valencia and
Lyon.
We have to be ready because
they will come out ghting to
make history in the Champions
League. -AFP
31
SPORTS BRIEFING
Sepp Blatter appears before

FIFAs appeals committee
Disgraced FIFA president Sepp Blatter appeared before a

FIFAs appeals committee yesterday to ght an eight-year
ban from the sport for ethics violations.
Blatter arrived at FIFA headquarters in Zurich 90 minutes before the start of the hearing.
His hearing follows a similar appeal by the fallen head of European football, Michel Platini, on Monday.
Blatter and Platini were banned by FIFAs ethics committee in
December after being found guilty of breaches surrounding
a mysterious $2 million payment Platini received from Blatter in 2011.
Both men, once the most powerful gures in world football,
have insisted that the payment was part of a legitimate oral
contract reportedly for consulting work performed by Platini
a decade earlier.
The notorious 2011 payment is also part of a criminal probe
by Swiss prosecutors targeting Blatter, in which Platini has
been questioned in a capacity that falls between a witness
and an accused person.
Blatter and Platini have been the most high-prole casualties in the unprecedented, wide-ranging scandal that has
seen senior football executives suspended or red, with 39
people indicted for corruption by the United States.
The saga has provoked endless discussion about the complicated relationship between Blatter and Platini, who previously were allies before the relationship turned publicly sour.
As the two men ght to preserve their football careers, the
campaign to replace Blatter is heating up with the vote 10
days away.
UEFA general secretary Gianni Infantino and the head of the
Asian Football Confederation Sheikh Salman bin Ebrahim
al-Khalifa are widely seen as frontrunners, ahead of Jordans
Prince Ali bin al-Hussein, South Africas Tokyo Sexwale and
Frances Jerome Champagne. -AFP
Sepp Blatter. AFP
Clubs lose as agents eceive ecod payments

Football clubs received just 0.5
per cent in training compensation
from the record $4.2 billion transfer
fees paid last year as agents received
record payments, the international
professional footballers union FIFPro claimed on Monday.
The amount of compensation
that clubs paid agents in 2015 rose
by 15 per cent to a record 228 million
euros ($260 million) overshadowing the global sum of 20.7 million
euros ($23 million) clubs received
for youth training.
The share paid to clubs to compensate them after losing a player
they had brought through a youth
academy matches a record low from

2012, FIFPro said.
In 2001, world governing body
FIFA introduced training compensation for clubs that developed players between 12 and 21 years to try
and encourage spending on youth
academies.
The latest data was compiled
by FIFA and presented by FIFPro
to Members of the European Parliament in Brussels on Monday to
show how the transfer system is not
eectively distributing revenue.
The transfer system is rewarding agents far more than football
clubs that produce talent, FIFPro
Secretary General Theo van Seggelen said. How can this be right? Its
critical the system is overhauled.
FIFPro, which represents 65,000

footballers, in September 2015 led
a complaint to the European Commission about the player transfer
system.
According to FIFPro, footballers do not enjoy the same rights as
clubs to unilaterally end contracts,
meaning the professional athletes
do not have similar freedoms to
other kinds of employees in relation to their employers.
The commission is studying the
complaint and has asked FIFA for its
response to the complaint.
-AFP
Hong Kong windsurng heroine

warns of Rio de Janeiro pollution
Hong Kongs Olympic athletes face a bigger threat from the
tainted waters of Rio de Janeiro than the Zika virus, the citys
former windsurng gold medallist warned yesterday.
Lee Lai-shan is the southern Chinese citys only Olympic gold winner and a local heroine.
She expressed concern over the risk posed to windsurfers from
the very polluted waters in the Brazilian city, which will host the
Games in August. Our biggest hurdle is... the poor water quality.
Its very polluted there. Once you fall sick youre done, Lee told the
South China Morning Post. Windsurfers will be competing in Rios
Guanabara Bay.
Brazilian authorities had promised to clean the natural harbour
but even today, half of Rios sewage pours in untreated.
Lee, who won windsurng gold at the 1996 Atlanta Olympic
Games, said that Zika would be less problematic. I think this virus is just another obstacle. Taking precautions to avoid mosquito
bites would be enough, she told the Post. Brazil has been most
affected by the mosquito-borne virus outbreak that has spread
rapidly through Latin America and the Caribbean. -AFP
32
MARK TO MARKET
MARKET ANALYSIS with Rufus Mwanyasi
www.businessdailyafrica.com
Investment banks
eanings may dop,
says JP Mogan
OUTLOOK The current downturn looks set to persist and good strategies can protect portfolios
How investos can

manage volatility at
NSE equity maket
Global investment banks earnings may decline

this year, given a challenging credit trading
environment and low level of deal ow, said
JP Morgan Securities analysts, who cut their
2016 earnings estimate for investment banks
by an average 20 per cent.
We believe the Q1 IB revenue environment has started on a challenging note with
limited issuance activity and widening credit
spreads, said analysts led by Kian Abouhossein, who estimate revenues to decline 21 per
cent in 2016.
The current turmoil in global equities and
commodities markets has made it harder for
investment banks to make money in traditional
business lines. The MSCI all-world stocks index has declined 9.5 per cent since the start
of the year.
f youve looked at the stock marneed to have an asset-allocation stratket at all this year, you know it can
egy. Yes, stocks boast the potential for
cause one to cringe. It almost aphigher long-term returns than bonds
pears to be taking cues from the global
and cash precisely because theyre riskmarket: plunging oil prices, slowing
ier but they also tend to experience extended periods of weakness, as they did
growth in China, steep declines in
overseas equity markets and concerns
in the 2008-2009 bear market.
about the Federal Reserve
A good way to modrate decisions.
erate the impact of the
A good ule of
The market has experiinevitable stock market
enced a heightened state
thumb is to invest downturns and heightened volatility is to diof volatility in the past sevyou age into
eral months. In the year-toversify an all-stock portbonds... if you ae folio with investments in
date, the benchmark index
has lost 128 points or 3.2 per
bonds, which can cush60 yeas old 60
cent of its value. Its also 20
ion a portfolios decline
pe cent of you
per cent below its February
in value while generating
2015 high. Now, high volatilsteady income.
potfolio should
ity should not be surprising
Secondly, investors
be in bonds
since equity markets stocks
need to adapt their inare naturally volatile. Nevvestment strategy to a
ertheless, it can be unsettling.
fast-moving market. Usually, when
Therefore, if volatility is inevitable,
the stock market turns turbulent, most
what can investors do? Is it manageinvestors resort to watching the bear
able? The quick answer is yes. And the
erase their gains and eat into some or
how to manage it is the subject of my
all of their portfolio capital. This haparticle today.
pens as investors at rst get spooked to
Every investor is dierent based on
ee but then choose to wait in order to
how they perceive volatility, but there
make up their losses, a situation which
are certain things they can do to betoften leads to more losses.
ter manage volatility. First, investors
To avoid this situation, it is prudent
Not healthy
Investment brokers on the Nairobi Securities Exchange trading oor. FILE

to temporarily adjust the portfolio to a
changing environment even when that
means liquidating the whole portfolio
into cash. Of course, one can always
redeploy capital once the markets return to normalcy.
Lastly, investors need to understand what they own and map it to
their goals. A cardinal sin of investing
is taking on risks that dont make sense
or no longer make sense given ones
situation and life stage. Investors need
to understand what each security and
asset class is doing in their portfolio.
If one expects to spend from their
portfolio within the next few years, consider allocating more towards less risky
assets (bonds and cash). A good rule
of thumb is to invest your age into

bonds, that is, if you are 60 years old
or more, it means 60 per cent of your
portfolio should be invested in bonds
and the rest in equities. This simple
approach of calculating risk exposure
seeks to manage volatility according
to ones needs and goals.
In all, the above ways can help investors reduce the volatility in their
portfolios in the current period. If,
however, one chooses to stay invested, they should be aware of how the
market conditions will aect their
portfolios.
Mr Mwanyasi is the managing director of Canaan Capital
GLOBAL MARKET WATCH

FTSE 100
2,496.34
-11.93
DJ INDU
15,973.84
313.66
XETRA DAX
9,173.68
-33.16
MARKET CAP IN SH BN
TOTAL SHARES TRADED
CAC 40
4,120.58
5.33
FTSE MIB
16,834.87
-206.95
SMI PR
7,790.74
-57.59
HANG SENG
19,122.08
203.94
NIKKEI 225
16,054.43
31.85
ALL ORD.
4,961.59
68.15
SSE COMP
2,837.41
91.21
S&P SENSEX
23,175.68
-378.44
1,974.93
1,975.80
15,429,900
EQUITY TURNOVER IN SH
BONDS TURNOVER
493,160,438
1,208,100,000
19
12
TOTAL DEALS (EQUITY)

NSE 20 SHARE INDEX
NSE ALL SHARE INDEX
NSE 25 SHARE INDEX
Sweat equity is the most

valuable equity there is.
Know your business and
industry better than anyone
else in the world. Love what
you do or dont do it.
318,353,925
896,250,000
TOTAL DEALS (BONDS)
HE SAID
PREVIOUS
19,042,500
1,231
1,156
3,789.59
3,794.41
140.24
140.31
4,058.43
4,058.09
FTSE NSE KENYA 15 INDEX
178.95
179.61
FTSE NSE KENYA 25 INDEX
178.86
179.42
FTSE NSE KENYA BOND INDEX
88.60
88.62
FTSE ASEA PAN AFRICAN INDEX
961.32
969.47
-REUTERS
CURRENCY RATES
Market Activity
LAST
Global investment banks cash equities revenues may fall as the recent decline in equity
markets indicates volumes are not healthy, the
analysts wrote in a note to clients.
Our earnings cuts for 2016 also incorporate
our view that if there is market normalisation,
it could be followed by a period of lower market
activity as we have witnessed in past sell-os,
thus impacting IB revenues, they added.
JP Morgan analysts said they see better
value in US investment banks owing to their
excellent capital position.
Goldman and Morgan Stanley are both
likely to buy back about 23 per centof shares
and lower net share count by about 15 per
centthrough 2018, said JP Morgan analysts,
naming Goldman their top pick among US
investment banks.
Download the NMG PLAY app on Google

Play and scan this QR code with your
smart phone for pictures, videos and
more stories
Mark Cuban, American businessman,

investor, lm producer, author, television
personality and philanthropist.
$: 101.83
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