If I am not sure or have no comment I have left the ranking "blank". I concentrated on firms that have enough info on their directors & on those that are consistently 3-stars+ in my book.
Please note the rankings do NOT reflect the movement in share prices. The movement in share prices is NOT always correlated to firm's performance in the short-term.
Example: IMHO, EABL shows a price gain that outstripped profit growth in 2005. The price has since stagnated/dropped. I expect little movement upwards UNTIL the profits catch up to the share price!
Ranking will be updated to reflect additional info or thoughts/opinions.
0-stars (Huge one-way sucking sound from shareholders' pockets to Board+Mgmt)
1-star (Management spits a little back AFTER sucking out most of the juice)
2-stars (Minority shareholders are NOT likely to benefit much)
3-stars (They make profits but there is a niggling feeling that profits could be much higher)
4-stars (They make profits for the minority shareholders but the "majors" benefit a tad more)
5-stars (They make profits & money for ALL shareholders)
Unilever Tea - 4**** coz the weather & tea prices isn't entirely in their control. Great dividends when they make money. Management depth is good.
Rea Vipingo -
Sasini Tea & Coffee - ???? Merali controlled. Professional (not family) managers.
Car & General -Gidoomal family controlled.
CMC Holdings Ltd - 4****. Board is full of "friends" but it has done a great job in the past few years.
Hutchings Biemer - ZERO. Need I say more?
KQ - 5***** coz they are on a roll with great CEO & backing from KLM who has RIGHT to appoint MD & FD. Government can't interfere even though they have tried in the past!
Nation - 5*****. Independent board & great management with superior products & services. Aga Khan firm.
TPSEA - 5*****. Independent board & great management in a challenging sector esp with insecurity. Aga Khan firm.
Uchumi - Management seems to be doing a good job BUT no financial info available. Unknown management.
Barclays - 5*****. World-class management drawn from the smartest Kenya has to offer. Great resources to draw upon if needed. It has strong results every year with a nice dividend.
CFC Bank - 4****
Diamond Trust - 5***** all the way. Aga Khan firm that has great management depth to draw on when needed.
HFCK -3***. CDC provides depth of management BUT there is political pressure even though government is a minority shareholder.
ICDCIC - 3*** coz kirubi controlled otherwise the firm profits are steadily on the way up.
Jubilee Insurance - 5*****. Conservative which is what an insurance firm should be! Aga Khan managed.
KCB - 3.5*** coz of possible government influence. I think Terry Davidson has done a great job but the best is yet to come. Will upgrade to 4**** if the government reduces its stake to less than 10%. Govt appoints CEO. I like their growth initiatives into Sudan, TZ & UG in near future.
NBK - 2** coz of government influence through the board & NSSF. The bank is also "insolvent" without the generous assistance of the NSSF.
NIC Bank - 3*** but almost a 4****. If the ndegwas relinquish substantial control & provide an independent board. The bank is miles ahead of its competition in the range & quality of services.
Pan Africa Insurance - 3***. Sanlam managed. Possible upgrade.
SCBK - 5*****. No complaints about the big banks coz they are solid firms with great earnings & dividends.
Athi River - 3***. Paunrana family control but Bamburi has board seat & influence. Entrepreneurial firm.
BOC - 4****. Well managed. BOC (soon to be Linde controlled). Profit growth is a constant!
Bamburi - 5*****. Great management. Low key but very profitable firm.
BAT - 5**** in how they handled Ngilu's arbitary but political "smoking ban" by tackling it through court & the media. Smoking & profits are back, baby! Kenya is an export hub.
Crown Berger -
EA Cables -
EA Portland Cement - 1* - Ole Mapeyu & 5 senior managers resigned in the face of governmental interference. Hats off to them!
EA Breweries - 5*****. Great, smart management. Guiness controlled thus lots of experienced management depth all over the world.
Kenol -3***. Biwott controlled (75%) but professional management that has expanded the firm regionally.
KPLC -2**. The 2 stars are solely on the basis of new managers from Manitoba who are World Bank funded so not directly influenced by local politics. Needs time to upgrade.
KenGen - 2**. Will do well coz its a monopoly but not necessarily well managed. Electricity in Kenya is very expensive & visionary management would lower the cost while boosting supply. Excessive government control through is 70% ownership.
Mumias - 4****. Great show by management but government influence in Mumias is worrisome.
Sameer - Merali controlled.
Total - 3***. Well, they are Francais.
A. Baumann -
City Trust -
Eaagads - 2**. Controlled by Socfinaf. Very little info available.
Williamson Tea -3***. Well managed but stingy with dividends. Its problems emanate from the nature of agriculture i.e. dependent on weather & international tea prices.
Kapchorua -3***. Williamson Tea controlled.
Kenya Orchards - This is a NEGATIVE in my book! Why haven't they been suspended from listing?
Limuru Tea - 5*****. Unilever Tea controlled.
Standard Group - 2**. Almost 3*** but their ownership is politically biased. SGL gained respect with their bold handling of (anti) government issues which led to the raid on their offices. The quality of their business reporting sucks!
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