Safaricom - 10% (not 5%) was stolen!

Mobitelea, a subsidiary of Thieves, Inc

The crescendo over the, mobitelea stolen indirect 5% ownership in Safaricom, is rising. What many commentators are missing is that it was 10% (not 5%) that was stolen from every Kenyan Man, Woman & Child.

mobitelea - often referred to as moi biwott telecoms of east africa - had stolen 10% but sold 5% in 2002 to its partners in bribery, vodafone, when moi's proxy was going to lose the elections.

The way I figure it out is that Vodafone bought 40% of Safaricom from GOK but had to cough up 10% to mobitelea as "grease" money. A pity but vivendi had to cut a deal with naushad merali (the ty"con") for the 2nd license.

Suggested remedy for the Public & Vodafone?

Well, vodafone should return the 5% to the GOK (to be sold as part of the IPO) for what they paid & a "fair" return. I can't blame them for buying what seemed a bargain. As part of coming clean, they should sell the 5% back to GOK at a discounted price to current market value.

The monies paid by Vodafone to mobitelea should be recovered from mobitelea by the GOK & vodafone.

Thhe 5% that originally "belonged" to mobitelea but then sold by mobitelea to Vodafone.

What of the 5% that still "belongs" to mobitelea?

daniel moi & biwott will support kibaki in the 2007 elections as long as this thievery is kept under wraps!

We need to go after these crooks & retrieve the stolen 5%. As well as any dividends made to them! The 5% are stolen goods!

FOLLOW THE MONEY...

More small cars coming our way from India...

Wow... it is amazing how far India has progressed since 1980 vs most African countries... But as usual I shall concentrate on Kenya...

This is a slideshow about Indian car manufacturers & "small" cars...

India used to be thought of as an over-populated backward country but the changes there are amazing. The problems are still there but the economic progress is outstanding.

I pick India, not China, as a model Kenya should emulate (the GOOD not the bad) since Kenya, like India, has a (flawed) democracy. China is a totalitarian state Kenyans will & should not embrace.
Furthermore, India faces many issues/problems that mirror those of African countries including a burgeoning population, poverty, corruption & a monolithic bureaucracy.

So, what can we learn from India (the GOOD not the bad!)?

• Privatisation - India is moving from a socialist mindset to a capitalist mindset. Some may argue that India has alway been a dyed-in-the-wool capitalist nation. Well so was most of pre-colonial Africa. The largest Indian firms are PRIVATE enterprises/groups including Reliance, Tata, Birla, Wipro, etc. Many state owned firms are being privatised as competition sets in. (Kenya is doing well on this aspect esp after Kibaki came to power. I hope the trend continues).
  
• Technocratic appointments - Manmohan Singh (PM) was a technocrat who was appointed as Finance Minister in the 1980s. And then give them a free hand. The "Dream Team" of the 1990s was a good idea but derailed when they did not kiss moi's ass. (Sigh... Kenya could do much better in this respect. Political appointments rule the day not merit. Then add underworked but overpaid assistant ministers to this mix!).
  
• De-tribalisation - India has more issues/problems than Kenya regarding "tribes", religions & castes. Nevertheless, there has been a slow but steady growth in those who don't care about these matters. And it starts from the top. Rajiv Gandhi married Sonia (an Italian). Indira Gandhi (a Hindu) married a Feroz (a Parsi). There are many other examples that are not widely known. The CEO of BioCon is Kiran Mazumdar-Shaw. Kiran is India's richest woman & married to a Scot. (Kenya is doing poor in this regard especially when the populace is intent on electing their "own" regardless of merit. The good news is that the urban youth are not swayed as much but the rural - ethnic - vote exceeds the urban vote. Raila's son, Castro, is married to a Kikuyu girl! But will this turn into votes for him?)
• Women empowerment - Even though women are often treated as second-class citizens, India's current president is a woman. India's kingmaker is also a woman (Sonia Gandhi). Indira Gandhi was the PM for many years. Many of the states have Chief Ministers who are women. (Kenya has women politicians (karua, ojiambo, ndungu, etc) but except for Wangari Mathaai, I do not see these politicians agitating for the common woman. Campaigning for another 40 "special" seats does not count. What about the 17,000,000 other girls & women? And why do women who constitute 50% of the population need special treatment? If the women ganged up, they could elect a woman president as well as the majority in parliament!)
  
• Domestic Market - Indian firms export BUT the domestic market is important. Indians support local firms. Even Coke had a tough time when many Indian favoured the local "Thums Up" over "Coca-Cola". (I am embarrassed when I see imported butter & eggs in Kenyan supermarkets!!! Yet we have KCC among other firms exporting dairy products to the Middle East. We import canned "Heinz" beans & "Ceres" juices whereas we have local firms producing the same /similar goods! Kenyans' obsession with imports is pathetic!
  
• Spread e-government - India has spread government's reach to embrace substantial portions of the population through technology. The kids are becoming the teachers in many villages. The trend is fueled by examples/idols ranging from billionaires like Azim Premji of Wipro among others. India's huge BPO industry is pushing technology into the villages. (Kenya has been talking the talk but not walking the walk regarding technology. We need to employ savvier professionals who can spearhead e-government. Credit to Kimunya among others who are driving the computerisation process. But we need to do more, sooner.)
• India has embarked on connecting the corners of the country with expressways. The idea is to boost trade as well as encourage exports & efficiencies. The rail network has great coverage all over India. (Kenya does not have a decent highway across the country. The Nairobi-Mombasa highway is a veritable mess. Nairobi-Kisumu is even worse. Imagine the possibilities if we had a decent North-South highway from Namanga to Lokichoggio AND a 4-lane decent highway from Mombasa-Kisumu. Our cross-border trade with S. Sudan & Uganda would show strong gains as would Kenyan domestic tourism).
  

Housewife make Millions... trading stocks & forex!

I need stock tips from this Japanese housewife!

I think it makes sense for some investment bank or mutual fund to hire her as an analyst or trader... even if just for the publicity!

Japanese housewife makes MILLIONS...

I have a feeling that there are soma "Mamas" in Kenya who have made millions but you would never guess just looking at them!

That's why I cringe when some silly bureaucrat tries to impose rules/regulations ostensibly to protect someone against market risk!!!

Cheetahs vs Hippos

http://myafricatoday.blogspot.com/2007/08/george-ayittey-cheetahs-vs-hippos-for.html

The Government of Kenya (or some idiots within it) were "insulted" when an article in The Economist referred to "new" Africans as Cheetahs vs the "old, corrupt, status-quo' Africans as Hippos.

So the IDIOTS canceled an important meeting/conference the Economist was going to hold in Nairobi in view of the Economist's article. It turns out it was an AFRICAN (George Ayittey) made a great speech on why he believes in Africa & referred to Cheetahs & Hippos!

He also argues that Capitalism was integral to ancient African communities. The marketplaces e.g. Timbuktu was a marketplace. What the "Hippos" introduced as "Socialism" (including African Socialism as attempted in Kenya or Tanzania) was a form of "Swiss-bank Socialism" for the Hippos.

Anyway, here is his definition paraphrased.

The Cheetah Generation - made up of the youth, specifically the TED Fellows present here, the saviors of Africa who are not going to wait for government and aid organizations to do things for them.
The Hippo Generation - the current political and business leaders who are happy to wallow in their water holes, complaining about colonialism and poverty, but doing nothing about it.

Here are some sources of information on George Ayittey's speech.

White African
TED
Where are the Hippos?

Her... She... is... Mine...

The New... Curve

Feeling my way around Her
No wonder She is the Curve.

Pressing Her buttons
will engage Her functions.

Brains & Beauty never come cheap
High maintenance is Her keep.

Her interest in my tongue
Has all forgiven & forgotten.

She sounds so sweet
being new & pristine.

She is the She for me.

The Ex

Felt sad to let her go. The sadness lasted but a moment.

Why JKIA needs a 2nd runway...

Sigh... I feel sorry for KQ among other airlines that suffer do to the stupidity reigning at JKIA...

Apparently, the JKIA management (what qualifications does muhohohoho have to be running the KAA???) believes one runway is enough... whereas for safety & efficiency there need to be be at least 2 runways!!!

Another plane burst its tires on the runway... I would like to know the cause (debris on the runway?)... and the airport was shut down. Again!!!

The other day the airport was closed down for 2 days since there were no landing lights!!!

A 2nd runway would allow flights to land & leave even if one runway is damaged or closed for maintenance or due to a crash/accident.
JKIA was built to handle 2mn passengers but handles over 4.4mn passengers. With the rapid growth of KQ & increased local airlines/flights as well as additional international airlines flying into nairobi, there is a need for increased capacity for the aircraft.

How to buy shares offered under a Rights Issue

I will use the example of Olympia Holdings Co. Ltd (OCHL). I do not have their timetable but I will clean/correct the dates/details when I can get my hands on one.

OCHL announced their intention to do a "Rights Issue" which means existing shareholders have the "Right" to buy more "newly issued" shares in the firm. The proceeds go to the firm for expansion, debt payoff, etc.

The increase in capital was passed at the AGM held in June 2007, thereafter an announcement was made to the number of shares to be offered in the Rights Issue on 26 June 2007. This was 3:1 meaning you could but 3 "new" shares for each 1 share owned.

OCHL made an application to the CMA. After CMA's approval, OCHL announced a price for the "new" shares i.e. 14/- on 10 August 2007. The shares will trade Cum Rights through 17 August 2007 after which they go Ex-Rights.

For some reason unknown to me, the shares are not reflected as Cum Rights on the price list dated 13 or 14 August 2007.

Anyone who buys the OCHL shares on or before 17 August 2007 is entitled to the Rights for "free". What this means is that each share has the "Right" to buy 3 more shares at 14/- each. The shareholders as of 17 August 2007 will receive a Memorandum of Information (MoI) that includes forms to apply/assign/transfer/sell these Rights.

The Rights will then trade separately from the underlying shares. (I do not have the timetable but I think the last day to apply for the shares is 3 September 2007). Anyone can buy the Rights at a "premium" then exercise them at 14/- in exchange for "new" shares. To buy Rights, an investor needs to contact their broker & ask them to buy Rights from the market.

PLEASE SEND ME A TIMETABLE IF YOU HAVE ACCESS TO ONE.

Olympia Capital Holdings announces Rights price...

OCHL has announced the Rights price at 14/- per share. I was expecting 10/- but the 14/- is a 30% discount to the current market price of 20/-.

The shares should trade Cum Rights for a few days until they trade Ex-rights but that need to be decided by the CMA, NSE & OCHL.

OCHL would raise a (gross) KShs 420mn if all the shares are taken up. The current "excess liquidity" on the NSE may bode well for them since the KenRe IPO was over-subscribed & the refunds should start flowing in soon.

Nakumatt eyes Ugandan chain?

Considering Nakumatt's expansion plans across E&C Africa as well as its intention of going public in 2009... this seems an ideal opportunity to expand & gain instant market share in Uganda .

Uchumi has one branch in Kampala but can ill-afford to expand further... After what seems to be another failed attempt to raise additional funds from existing shareholders, it may have to shut down OR find a strategic investor to turn it around.

And just 10 years ago, Uchumi Supermarkets was one of Kenya's most profitable firms, under the then MD - Suresh Shah, paying hefty dividends... but it went downhill fast after chris kirubi & company took over...

That opened the door for the rapid expansion of Nakumatt since many suppliers quit supplying Uchumi. Even though Uchumi has a branch in Kampala, the continuing inancial problems at home will affect them in Uganda... whereas Nakumatt is raring to expand in East Africa.

For the Obama fans... the Obama Girl...

I have to say... what a way to get folks to tune into Obama...
And now to Kenya, I wonder if we will see the Tinga Girls? The Kalonzo Honeys? And what will Julia Ojiambo think of?