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7/17/2019 Daily Peoples
http://slidepdf.com/reader/full/daily-peoples 1/32
THURSDAY, OCTOBER 1, 2015 WWW.BDAFRICA.COM KSH60 | TZ SH 1,700 | UGSH2,700 | RFrNO. 2195
Const≥uction dip pulls downsecond qua≥te≥ g≥owth to 5.5pcAnalysts say theperformancemakes it hardfor economy torealise Treasury’s 6.5 to 7 per centannual target
TSC out tohi≥e 70,000teache≥s fo≥th≥ee months
TSC chief executive officer Nancy
Macharia. FILE BY NEVILLE OTUKI
Economic growth slowed down in the
second quarter of the year, shackled by
the near halving of activity in the key con-
struction and manufacturing sectors in
the wake of persistent exchange rate tur-
bulence and the resulting rise in the cost
of imported goods.
Official data released yesterday shows
that the economy grew by 5.5 per cent
between April and June, down from the
6 per cent growth reported for the same
period last year.
The performance, which ana
said had exceeded their expectat was, however, still better than th
per cent recorded in the first qu
of the year.
“This is definitely better than I ex
ed,” said Aly-Khan Satchu, an indep
ent analyst who runs Nairobi-based
vending firm Rich Management. “
good outcome in light of the preva
climate that is underlain by turbule
change rate and rising interest rate
Mr Satchu, how-
ever, said that at 5.5 ECONOMY, P
5.4% 4.5% 9.9% 0.8%
AGRICULTURE MANUFACTURING CONSTRUCTION TOURISM
Growth in key sectors in the
second quarter (%)2014 2015
Electricity 4.6 10.2
Construction 16.6 9.9
Transport/
communication5.7 6.2
Financial 7.9 6
Agriculture 2.1 5.4
Manufacturing 8.3 4.5
SOURCE: KNBS
BY BD TEAM
The government intends to hire
70,000 relief teachers to minimise
disruption of learning in public
schools caused by the ongoing
strike.
Recruitment of the relief tu-
tors comes at a time when the
government is embroiled in legal
battles with the teachers over a
pay dispute.
In a notice dated September
29, the Teachers Service Com-
mission (TSC) is calling on pri-
mary and secondary tutors to ap-
ply for jobs.
TSC chief executive Nancy Ma-
charia called on registered teach-
ers aged below 45 years to submit
their applications for the positions
before Monday, October 5.
Out of the intended recruit-
ment of 70,000 relief teachers
sought by TEACHERS, Page 4»
7/17/2019 Daily Peoples
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2 BUSINESS DAILY | Thursday October 1, 2015
BY EDWIN MUTAI
A select committee will be formed to
look into allegations of skewed and
compromised investigations by
various government and non-State
agencies during the 2007 post-elec-
tion violence if Parliament approves
a motion filed by Ainabkoi MP Sam-
uel Chepkonga.
If approved, Parliament may get
another opportunity to discuss the
report of the Commission of Inquiry
into the 2007/08 post-election vio-
lence, popularly known as the Waki
report, that was tabled in the House
in 2008 but never acted upon.
Mr Chepkonga, who chairs the
Justice and Legal Affairs Committee,
has written to Speaker of the National
Assembly Justin Muturi seeking to
establish the probe team.
The Waki report, which has since
been adopted as part of the evidence
in a case facing Deputy President
William Ruto and former journalist
Joshua arap Sang at The Hague, is
yet to be discussed and adopted by
the National Assembly.
Mr Ruto and Sang are facing
crimes against humanity charges
at the International Criminal Court
(ICC).
The charges arose from the vio-
lence that followed announcement
of the presidential election results
in 2007 where former president
Mwai Kibaki was declared winner
over former prime minister Raila
Odinga.
Over 1,133 Kenyans died in the vio-
lence and another 650,000 were dis-
placed from their homes. ICC prose-
cutor Fatuo Bensauda closed her case
against the two this month.
Defence lawyers are expected to
make their closing submissions.
Ruto and Sang have filed an app
against the use of five recanted w
ness statements by the prosecut
“Aware that following the 2
post-election violence, various s
and non-state agencies carried
independent investigations, eit
on their own of in the exercis
their statutory functions….som
those agencies, including the W
commission either submitted
publicised their findings and or
ports which are yet to be discus
by the National Assembly,” Mr Ch
konga said.
He said there have been conce
over possible compromise and a
gations that some of the witne
who testified before the presiden
commission of inquiry into the
lence and other agencies may h
been procured.
MP wants House to p≥obe Waki ≥epo≥t claim
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BY BRIAN WASUNA
A fresh labour dispute is brewing in
the judicial arm of government where
nearly 500 staff members have differed
with their employer, the Judicial Serv-
ice Commission (JSC), over cancellation
of promotions that had been awarded
in April.
The dispute has its roots in the JSC’spublication of a notice on August 19,
cancelling the cross-departmental pro-
motions that were granted to 475 em-
ployees early in the year.
Employees who have
worked in the courts for
at least three years and at-
tained additional academ-
ic qualifications since they
were employed qualify for
appraisal and promotion.
The JSC has recently
introduced a raft of guide-
lines on staff assessment
and promotions, includ-
ing a stop to cross-depart-
mental movements thus
freezing staff advancement.
The Kenya Judiciary Staff Asso-
ciation’s (KJSA) attempt to reach a ne-
gotiated settlement with the JSC has
flopped, pushing the employees down
the strike path
“Our members have raised the is-
sue with us and we have written to the
JSC seeking clarification. We are await-
ing a response from the JSC while also
consulting our members to see what
action to take next,” KJSA chairman
Sango Maewa said.
Judiciary Chief Registrar Anne
Amadi did not return our phone calls
or reply to messages sent to her on the
dispute. The August memo sent to all
Judiciary staff said the new guidelines
would affect employees interviewed in
April for promotions.
The JSC says in the memo that it
would consider a few cross-depart-
mental transfers, but those affected
would remain in the same pay grade
as their current positions.
Employees have opposed the direc-
tive, arguing that it renders academic
qualifications they have since attainedredundant.
Qualifications for promotions within
departments require employees to have
attained new qualification
in the relevant discipline.
Clerical officers would, for
instance, only be promoted
after taking classes in pro-
ficiency.
Mr Sango said the un-
ion’s members had op-
posed the guidelines, but
insisted it was too soon take
any action.
He, however, did not
rule out a strike or legal
action against the JSC for
ignoring interviews that were done
in April.
JSC commissioners conducted the
interviews and released a 74-page re-
port, seen by the Business Daily, that
recommends hundreds of employees
for promotion. The interim report is,
however, yet to be signed by the 11 com-
missioners.
“Any officer currently undertaking
further studies or training should notify
my office of the training and study being
undertaken for purposes of ensuring
that the training is relevant to their per-
formance in the Judiciary and is being
offered by a recognised institution,” Ms
Amadi says in a memo.
Judicial Se≥vice in
p≥omotions ≥ow
with cou≥t wo≥ke≥s LABOUR Union says 475 employees are
affected by cancellation of new appointments
We a≥e consulting
ou≥ membe≥s to
see what action to
take next
SANGO MAEWA
CHAIRMAN, KENYA JUDICIARY
STAFF ASSOCIATION
TOPNEWS
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Thursday October 1, 2015 | BUSINESS DAILY
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4 BUSINESS DAILY | Thursday October 1, 2015
State moves to hi≥e 70,000 ≥elief teache≥s as st≥ike bitesthe government,
50,000 tutors will be posted to prima-
ry schools while the remaining will be
attached to secondary schools.
“The teachers will be hired on athree-month contract and will there-
after be considered on priority ba-
sis for employment on permanent
terms when vacancies arise ,” said Ms
Macharia.
The advert requires that applicants
for primary school teacher positions
must have P1 certificates while those
seeking to be secondary tutors need
to have a minimum of a Diploma in
Education.
“Successful applicants must not fill
employment forms in more than one
station as this will lead to disqualifi-
cation,” the advert reads.
The public education sector has
been in turmoil since the beginning of
the new school term on August 31.
The more than 288,060 public
school teachers have boycotted work,
demanding a pay increase.
The teachers were awarded the
50-60 per cent salary increase bythe Employment and Labour Rela-
tions Court in June, but the TSC and
the government have since appealed
the ruling that is still pending at the
Court of Appeal.
The strike has paralysed the edu-
cation sector in a crucial term when
more than 1.4 million students are
supposed to sit for national exami-
nations.
Oral examinations for Form Four
candidates started on Monday and
will go on until October 6 before
the start of theory papers on Octo-
ber 12.
With fresh third-term dates, the
government attempted to re-open
the schools on Monday after the Em-
ployment and Labour Relations Court
suspended the teachers’ strike for 90
days last Friday.
Tutors, however, vowed to stay
away from the classrooms until they were given directions by the court.
The government and the teachers
appeared before the Court of Appeal
yesterday morning for the hearing of a
case in which the TSC is appealing the
decision by the Labour Court to give
teachers a basic pay increment.
Amendment
Attorney-General Githu Muigai yes-
terday told Appellate Judges Erastus
Githinji, Philomena Mwilu, Festus
Azangalala, James Odek and Martha
Koome that the implementation of the
50 to 60 per cent basic pay award to
the teachers in the manner proposed
by the Labour Court would require a
constitutional amendment.
“If judgment is allowed as it stands,
it will create an amendment to the
Constitution where Parliament can
appropriate funds, but will be limited
to what the courts have directed. Westate that it is not open for the judge
to disregard the constitutional frame-
work,” said Prof Muigai.
He said that the Constitution
provides that other than making
laws, Parliament has the power to
impose taxes and also decide how
public funds will be spent, a role
which even President Uhuru Keny-
atta and his Cabinet secretaries can-
not usurp.
“It is a power the Constitution has
reserved to Parliament and to the ex-
tent the judge wanted through the or-
der to allocate to teachers money not
budgeted for, it is the government’s
position that the judge made an ex-
treme error because he ignored the
Constitution,” said the AG.
He said there is no proced
known in law, other than the bu
etary process, that can create S
billion available to pay teachers.Prof Muigai said that the order
the government to immediately s
paying teachers enhanced backda
salaries so as to cover the period J
1, 2013 to June 30, 2017, without
propriation from Parliament, is
tenable.
President Kenyatta has maintai
that the increase in the teachers’ s
ries is unsustainable and canno
implemented by the governmen
The lowest paid teacher in Ke
earns a minimum salary of Sh23, 6
while the highest paid teacher ea
a minimum of Sh140,089.
Reporting by Sandra Chao, Ou
Wanzala, Abiud Ochieng and R
ard Munguti
»From Page 1
per cent, the second
quarter growth makes
it difficult for the economy to realise the
Treasury’s 6.5 to 7 per cent forecast for
the year, adding that momentum has
been lacking in the third quarter and
is unlikely to pick up in the final quar-
ter of the year.
The economy grew by 5.3 per cent
ast year helped by a robust six per cent
expansion in the second quarter, which
was the year’s best.
Analysts’ modest ex-
pectation for the third andfourth quarter of the year
is informed by the Central
Bank of Kenya’s decision to
increase the policy rate in
May and June to a high of
11.5 per cent, whose effect
has been the increase in
commercial bank interest
rates beginning September,
portending a slowdown in
consumption.
The Kenya National Bu-
reau of Statistics (KNBS)
second quarter data, which
was released yesterday,
shows that activity slowed
down in the manufacturing which grew
by 4.5 per cent compared to 8.3 per cent
in a similar period last year.
Kenya last week unveiled an indus-
trialisation blue print aimed at spurring
growth in the sector that has stagnated
at 11 per cent of gross domestic product
(GDP) for the past 10 years compared to
the global average of 16.1 per cent.
Activity in the construction, which
has for long kept the economy grow-
ing, also slowed down to 9.9 per cent
compared to 16.6 per cent in the second
quarter of last year.
Construction, which mainly con-
sists of infrastructure projects such as
roads, railways and real estate, grew at
the highest rate of 11.3 per cent in the
first three months of the year.
National Construction Authority
chairman Steven Oundo
attributed the slowdownto rising cost of loans and a
weaker shilling, which has
raised costs for private de-
velopers.
The KNBS data, howev-
er, shows that commercial
bank interest rates eased
to an average of 15.38 per
cent from 16.68 per cent in
the second quarter of 2014,
contrary to Mr Oundo’s as-
sertion.
KNBS director-general
Zachary Mwangi says in
the agency’s latest report
that the (second) quarter
of the year was characterised by a fairly
stable macroeconomic environment
supported by a slowdown in inflation
and decline in interest rates. The report
shows that the energy sector posted the
best performance, having grown 10.2 per
cent compared to 4.6 per cent in a simi-
lar period last year, helped by increased
geothermal and hydropower generation
alongside increased connection of homes
and schools to the national grid.
Kenya’s economic mainstay agricul-
tural sector, which accounts for slightly
over a quarter of GDP, expanded by 5.4
per cent in the review period compared
to 2.1 per cent last year, offering the much-
needed support to the economy.
The country’s macro-economic envi-
ronment has this year been marked by
a persistent weakening of the shilling
against the dollar. The turbulence has
seen the Kenyan currency lose 16.3 per
cent of its value to the dollar since the be-
ginning of the year to trade at Sh105.
The turbulence occurred in the wake
of falling revenues from tourism, tea and
horticulture — the country’s key foreign
exchange earners — amid a rising im-
port bill. The ongoing construction of
the Sh327 billion standard gauge rail-
way linking the port city of Mombasa
and Nairobi kept the construction sec-
tor afloat, analysts said, pointing to the
fact that the sector’s performance wouldhave been much worse in the absence of
the mega project.
The KNBS confirms that position,
stating that the 9.9 per cent construc-
tion sector growth was due to “increased
public infrastructure projects.”
Commercial banks’ lending to the
construction sector stood at Sh87.5 bil-
lion up from Sh77.1 billion last year while
cement consumption grew 4.8 per cent
to 459,022 tonnes.
The KNBS said growth in manufac-
turing was supported by reduced cost
of inputs such as electricity during the
second quarter.
“In the food manufacturing sub-sec-
tor, there was an increase in the manu-
facture of soft drinks and processing of
canned foods which recorded growths
of 8.4 per cent and 19.2 per cent, respec-
tively,” the bureau said.
The Treasury has said that it expects
the economy to grow at between 6.5 per
cent and 7 per cent this year but hopes
of attaining the target now look to
slipping away.
The many challenges facing
economy have forced the Internatio
Monetary Fund (IMF) to revise its f
year growth projection from 6.9 per
to 6.5 per cent.Kenya’s current account has,
instance, worsened by 61.8 per cen
Sh151.2 billion in the second quar
meaning the country imported m
than it exported, piling pressure on
shilling.
“The worsening of the current
count deficit in the second quarte
2015 could be attributed to the incre
in merchandise trade deficit that dete
rated to a deficit of Sh246.3 billion,”
KNBS said in its quarterly report.
A country’s net exports are on
the four broad components of gross
mestic product (GDP). The others
investment, consumption and gov
ment spending.
Tourism declined for the seven csecutive quarters on the poor perfo
ance of hotels and restaurants as we
accommodation, showing the exten
which rampant insecurity has wrea
havoc in the sector.
It, however, contracted at a m
slower pace of 0.8 per cent compare
19.3 per cent last year second quarte
“Overall, the sector recorded a
per cent drop in hotel occupancies,”
KNBS said.
The financial sector recorde
growth of 6 per cent in the review p
od compared to 7.9 per cent in the sa
quarter of 2014.
Credit to the private sector expan
by 20.6 per cent from Sh1.7 trillion in
second quarter of 2014 to Sh2.09 tril
during the same period of 2015.
Since 2010, the best performing
quarters were in 2011 when the GDP g
by 7.6 per cent and 2010 when it grew
7.3 per cent.
Const≥uction d≥agssecond qua≥te≥
g≥owth to 5.5pc»From Page 1
Kenya Power workers instal a newtransformer in Mombasa in July. Thelatest KNBS quarterly report showsthat the energy sector posted the bestperformance.FILE
TOPNEWS
It is a good
outcome in light
of the p≥evailing
climate that
is unde≥lain
by tu≥bulent
exchange ≥ate and
≥ising inte≥est
≥ates
ALY-KHAN SATCHU
RICH MANAGEMENT
Economy growth betweenApril and June %
SOURCE: KNBS
7/17/2019 Daily Peoples
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Thursday October 1, 2015 | BUSINESS DAILY
BY NEVILLE OTUKI
President Uhuru Kenyatta has
won a major concession from
the United Kingdom with a
new military deal that allows
British soldiers who commit
crimes while in Kenya to face
justice in local courts.
The new agreement— which had stalled since
2013 — will see off-duty sol-
diers tried locally for break-
ing the law.
“If a UK soldier commits
an offence whilst off-duty,
normal Kenyan law applies
as it would to any other UK
national in Kenya,” the British
High Commission said in an
e-mail response to the Busi-
ness Daily questions.
“If on-duty, UK military
law would apply – however,
with proceedings to be held
in Kenya, as directed by the
Judge Advocate General.”
The Judge Advocate Gen-
eral is the princi-
pal judicial officer
in the UK armed
forces.
The new deal,
which awaits
parliamentary
approval in the
two countries, fol-
lowed a Monday
meeting between
British premier
David Cameron
and President Kenyatta on
the sidelines of the ongoing
UN General Assembly meet-
ing in New York in a bid tostrengthen security, economic
and diplomatic ties.
Nairobi had threatened to
end its military co-operation
deal with the UK unless lo-
cal courts try British soldiers
who commit crimes while on
training in Kenya.
“The new agreement will
result in improved military
capabilities for both sides
and allow for concurrent ju-
risdiction, recognising that
the laws of both nations ap-
ply to visiting forces,” said a
statement from the British
High Commission.
Kenya-UK military co-op-
eration has run for 40 years,
and is currently valued at
about £58 million (Sh7.9 bil-
lion) a year, up from about
Sh2.5 billion three years ago.
The pact was extended by six
months to October after the
initial deal expired to allow
for the talks.
The agreement allows upto 10,000 British troops a year
to conduct military exercises
in Kenya’s harsh terrain be-
fore they are deployed to ac-
tive operations in areas such
as Afghanistan and Iraq. The
deal also includes training of
the Kenya Defence Forces.
Kenya also wants more of
its soldiers to be trained in
the UK, up from the current
two yearly.
There have been several
unsolved crimes linked to
British troops.
In 2013, Sergeant George
Madison shot and killed Til-
am Leresh, an armed herds-
man, during a
live fire exer-
cise in Lolkan-
jau, Samburu
County, outside
the designated
military train-
ing grounds.
He was con-
fined to bar-
racks for seven
months while
a diplomatic
battle raged over where he
should be tried before being
removed from the country.
In 2012, Agnes Wanjiru Wanjiku was found mur-
dered in Nanyuki having last
been seen with two British
soldiers. The case remains
unsolved with the suspects
having been deployed to Af-
ghanistan before questioning
by the Kenya Police.
That same year, some 200
British soldiers were involved
in a bar brawl near the Lion’s
Court Hotel in Nanyuki. The
bar was destroyed and sev-
eral people injured. Some
of the soldiers were airlifted
to Nairobi. No charges were
ever filed.
UK soldie≥s tobe t≥ied locally
unde≥ new deal PACTKenyan laws to apply for
offences committed while off-duty
The new
ag≥eement
will ≥esult in
imp≥oved milita≥y
capabilities fo≥
both sides
BRITISH HIGH COMMISSION
ECONOMY& POLITIC
BY BD REPORTER
A spike in food prices helped lift inflation
for the first time in three months to 5.97
per cent.
The Kenya National Bureau of Statistics
(KNBS) said in a statement that inflationrose from 5.84 per cent in August.
Food costs outweighed drops in electric-
ity, kerosene, petrol, and housing prices, the
statistics office said. “This was an aggregate
result from increases in prices of several
food items which slightly outweighed the
decreases,” said KNBS.
Food has big effect on Kenya’s inflation
because it accounts for a larger share of
consumption. The cost of potatoes, milk,sukuma-wiki and onions went up, the sta-
tistics office said.
The central bank (CBK) has a medium
term inflation target range of betwee
per cent and 7.5 per cent.
Inflation has remained within
target over the past 12 months, sh
policy makers concern to the vo
Kenya shilling.
The shilling has lost about 16.3 peagainst the dollar this year on what the
has blamed on speculative activities b
rency dealers and weak fiscal positio
Food p≥ices ≥aise inflation fo≥ fi≥st time in 3 months
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6 BUSINESS DAILY | Thursday October 1, 2015
BY KIARIE NJOROGE
Corruption and burdensome taxes
have cut Kenya’s competitiveness in
the latest ranking by the World Eco-
nomic Forum (WEF).
The country is ranked 99th out of
140 economies in the 2015-16 Global
Competitiveness Index (GCI) released
yesterday, down from 90 last year and
trails regional rival Rwanda-which has
risen to position 58.
Corruption was cited as the most
problematic factor in doing business
with weak institutions in
government also pulling
Kenya’s score down.
High corporate taxes
has also dimmed Ken-
ya’s competitiveness. The
government takes 38.1 per
cent of the profits posted
by firms in form of taxes
compared 28.8 per cent in
South Africa and 33.5 per
cent in Rwanda.
Kenya had an aver-
age score of 3.9 points
from a maximum seven across 114
indicators that range from labour,macroeconomic stability, educa-
tion, institutions and infrastructure
among others.
In all the indicators that are cor-
ruption-related, the country scored
poorly reflecting the weakness in com-
bating the vice that has remained root-
ed in Kenya’s government and private
sector. For example, the index gives a
poor score of 2.9 (out of 7) for diver-
sion of public resources.
Diversion of resources for key pro-
grammes like infrastructure has been
blamed for slowing down the improve-
ments necessary to attract and retain
investors in the country.
The report also paints a poor
picture of the country in terms of ir-
regular payments and bribes as well
as favoritism in decisions made by
government officials.
Besides Rwanda, Kenya’s other
neighbours were ranked below it
with Ethiopia jumping nine places
to 109. Uganda was at 115 while Tan-
zania is ranked 120.
The index provides a glimpse into
the key factors that determine eco-
nomic growth and a country’s level of
present and future prosperity.
“By doing so, it aims to build a
common understanding of the main
strengths and weak-
nesses of an economy so
stakeholders can work to-
gether to shape economic
agendas that address chal-
lenges and enhance oppor-
tunities,” the report adds.
Kenya performed rel-
atively well on the qual-
ity of the education sys-
tem where it scored 4.3
points out of seven to see
it ranked at position 36.
Other areas of good
performance are financing through
local equity market (4.4 points), thecountry’s capacity to attract talent (3.7
points) and capacity for innovation
(4.3 points).
But terrorism which has severely
affected tourism at the coast is shown
to be a major drawback. Kenya has
been ranked last in the business costs
of terrorism showing the huge amount
being lost due to the terror attacks as
well as the insurance covers and se-
curity costs.
The country also ranks low at po-
sition 134 on the cost associated with
insecurity and organised crime. Po-
lice services are put to be unreliable
in the country.
SURVEY GCI report puts State at position 99 out of
140 as regional rival Rwanda climbs to position 58
Co≥≥uption, taxes cutKenya’s competitive
edge in global ≥anking
A road under construction. IFC mainly invests in infrastructure. FILE
By doing so it
aims to build
a common
unde≥standing
of the main
st≥engths and
weaknesses...
GCI REPORT
Bungoma youth
petition EACCon wheelba≥≥owsBY LILLIAN MUTAVI
A group of Bungoma youth has peti-
tioned the Senate, the ethics agency
and the Directorate of Criminal In-
vestigations to review county govern-
ment tenders, including the purchase
of wheelbarrows at Sh109,000 each,
saying they were inflated.
The petitioners also cite embezzle-
ment of funds, financial impropriety
and skewed employment.
“We have officially brought our
petition; before it was hearsay that
the county spent Sh109,000 on a
wheelbarrow. We want a clear inves-
tigation on the matter,” said Dalton
Simiyu, 24.
They also asked the Ethics and
Anti-Corruption Commission
(EACC) to investigate the acquisi-
tion of 32 acres of land at Musikoma
at Sh6 million per acre, which they
said was inflated.
The county government bought a
Toyota Fortuner at Sh9.6 million and
raised the budget for a maize meal
programme in Kamukuywa from
Sh376 million to Sh1.2 billion, stated
the petition.
Farmers got local cows at Sh82,000
each, believing these were exotic andpure breed dairy cows, they claimed
in a list that also contained an office
partitioning project whose budget was
Sh15 million and the fencing of the
governor’s office at Sh26 million.
The petitioners questioned the re-
cruitment process, accusing the Public
Service Board of biased hiring and dis-
regarding requirement of minimum
qualifications.
Mr Michael Mubea, the EACC
deputy chief executive, said 15 coun-
ties, including Bungoma, were being
investigated for graft.
The wheelbarrow case had been
investigated but the ethics agency will
also work on the list of petitions pre-
sented by the youth, he said.
ECONOMY &POLITICS
BY ANGIRA ZADOCK
Police are on the trail of a gang led by
a woman in her eighties that has been
robbing people in Nairobi for the last
three years.
Police say the gang of two menand three women,, all of Asian origin,
mainly target electronic goods and
M-Pesa shops in Nairobi and neigh-
bouring towns.
In all the cases reported to the po-
lice, the gang has not been reported to
use firearms. One of the gangsters is a
well-known suspect who was brought
up and lived in South C before he
moved away two years ago.
The elderly gang leader accom-
panies her youthful accomplices to
targeted outlets posing as a first time
visitor to Kenya and in desperate need
to change foreign currency into local
money.
The gang has been captured on
several CCTV cameras but very littleis known about their personal details
and residence. Lang’ata OCPD Elijah
Maina yesterday said they were inves-
tigating a case where the gang stole
money from an M-Pesa shop in Dam 2
Estate in Lang’ata on Saturday.
The octogenarian and another
young woman went to the M-Pesa shop
and pretended they wanted to with-
draw Sh70,000. The young woman told
the shop owner that the elderly woman
had arrived in Kenya the previous
and wanted various denomination
Kenyan currency.
The shop owner realised that t
were taking too long and became im
tient. She told them that she wante
attend to another customer who wed to buy milk from the next coun
but the young woman pleaded w
her to be patient.
She left to serve the other cust
er but when she came back to the
Pesa counter, the two left hurriedly
drove off in a car parked outside.
The shop owner later realised t
they had stolen all the money, but
fortunately did not get the detail
the car.
Police hunt fo≥ gang led by 80-yea≥-old woma
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CORPORATE NEW
BY BRIAN WASUNA
Barclays Bank has denied any involve-
ment in the alleged illicit transfer of a
134-acre piece of land in Karen whose
dealings have sucked in past and
present senior government officials.The lender yesterday told a Nairobi
High Court that it only held the land as
security for a loan taken by a business-
man at the centre of the saga, Horatius
Da Gama Rose, and released it in 1988
after the debt was repaid in full.
Barclays director of legal services
Waweru Mathenge said the lender only
oversaw the transfer of the land from its
original owner Arnold Bradley to Mr DaGama Rose’s father — Francis. Barclays
holds that it was the executor of Mr Bra-
dley’s will and that it was legally trans-
ferred to Francis Da Gama Rose.
Mr Mathenge said Mr Da Gama Rose
used the land as security for loans be-
tween 1983 and 1988.
He stated that there is no record to
show that the land was transferred to
Muchanga Investments, another firmowned by the Da Gama Rose family.
“Barclays transferred the property
to Da Gama Rose Investments as execu-
tor of Mr Bradley’s estate. By January
31, 1983 the executorship had been fi-
nalised. There are no records showing
that Barclays dealt with the land in re-
gards to Habenga Holdings, Catherine
Ng’ang’a or John Mugo,” he said.
Mr Da Gama Rose, former NSSFmanaging trustee Jos Konzolo and
Carmelina Mburu, the widow of Nai-
robi’s first provincial commissioner are
engaged in a vicious legal battle fo
land, claiming ownership. Much
Investments, owned by Mr Da G
Rose, filed the suit last year.
Lady Justice Lucy Gacheru
moned Barclays to explain the tra
of the property to Mr Da Gama RJustice Gacheru extended o
stopping interference with the p
erty until October 30.
Ba≥clays denies ≥ole in 134-ac≥e Ka≥en land t≥ansfe≥ saga
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8 BUSINESS DAILY | Thursday October 1, 2015
BY SANDRA CHAO-BLASTO
Airtel Kenya says it has removed all M-
Pesa branding from its mobile money
agency outlets in response to a court
case filed by Safaricom claiming
breach of its trademark.
Linda Kaai-Kiriko, Airtel’s legal
and regulatory affairs
manager, says in court
documents that the re-
moval of the referencesto M-Pesa in all its ad-
vertising boards is an
act of good faith but does
not amount to admitting
any liability.
“Upon realising that
this suit had been filed
Airtel acted with speed
and deleted all references
to the plaintiff’s services
from its boards by July 14,” says Ms
Kaai-Kiriko in the court papers.
Safaricom moved to court in June
claiming that Airtel was infringing on
its M-Pesa trademark for the promo-
tion and marketing of Airtel Money by
including its symbols on the advertis-
ing billboards of its agents.
Safaricom says it had written a
cease and desist letter to Airtel on
May 15 over the use of its logo by Air-
tel Money agents after investigations
showed infringement in 69 outlets
across the country.
The telco, which
has a commanding
lead market share,
claimed that Airtelinitially wrote to it
saying it was not
aware of the trade-
mark infringe-
ment and that it
would undertake
investigations and
revert.
Airtel later
wrote an e-mail
to Safaricom seeking a way forward
on the shared agents branding on
May 27.
Ms Kiriko claims that Airtel en-
gaged its rival in discussions to find
an amicable solution after the firm re-
ceived the demand notice with Airtel
Kenya CEO Adil El Youssefi and Safa-
ricom chief executive Bob Collymoreleading the conversations.
“Safaricom filed the instant suit de-
spite the fact that the chief executives
of the two companies were in direct
communication with each other on
the subject matter demonstrating the
seriousness with which the issue was
being treated,” she said.
Airtel says in court documents that
it had approached some of Safaricom’s
M-Pesa agents after the Competition
Authority compelled Safaricom to re-
move and nullify all the clauses that
provided for exclusivity of trade with
them in June last year.
Airtel’s legal affairs officer claimed
that the agents who agreed to enter
into contract with it did not object
to the mobile money branding ontheir premises, saying they wanted
the signage to show that they also
offered Airtel Money services in ad-
dition to M-Pesa so as not to mislead
customers.
“We agreed to put the notices on
the boards as requested by the agents
merely stating that the alternative
competing services were also avail-
able at the respective sites,” she said.
Safaricom’s in-house counsel Daniel
Ndaba however argues in court docu-
ments that the agreement of the re-
tailer to the branding of their outlets
was not a licence for Airtel to infringe
on the M-Pesa trademarks.
Ai≥tel ≥emoves
M-Pesa b≥andingf≥om agent shops
ADVERTS Firm says move is an act of good faith but does not amount to admitting liability
Airtel Kenya CEO Adil El Youssefi. FILE
Ai≥tel acted withspeed and deleted
all ≥efe≥ences to the
plaintiff ’s se≥vices
LINDA KAAI-KIRIKO, AIRTEL’S LEGAL AND
REGULATORY AFFAIRS MANAGER
CORPORATE NEWS
BY MUGAMBI MUTEGI
Stima Sacco is set to construct 340 r
dential houses in Machakos at a co
Sh1.3 billion, becoming the latest co
erative society to deepen its investm
in the real estate sector.
The gated community is to be b
on a 19.6 acre piece of land in Matung
(along Kang’undo Road) and will c
prise three-bedroomed maisonettes
bungalows, two-bedroomed apartm
blocks and a kindergarten.
Stima Investments Cooperative S
ety Limited, an affiliate of Stima Sacc
overseeing the project that it expect
break ground in November and comp
in about 18 months.
Co-operative societies like Mwali
Chai and Safaricom Saccos are curreundertaking several multi-billion shil
real estate projects in the country, sel
the housing units to both members
non-members.
“We expect to receive all regula
approvals and thereafter float a ten
for construction,” said Stima Investm
CEO Nelson Irungu in an interview.
“We are targeting the middle class w
are increasingly settling in the area.
houses will be sold to both members
outsiders for between Sh4 million
Sh6 million.
The 41-year-old sacco has a memb
ship of 54,000 and was ranked third l
est in the country by the sector regul
last year.
Stima Saccoin Sh1.3bn
housing plan
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Thursday October 1, 2015 | BUSINESS DAILY
IDEAS & DEBATE
BY ROBBIE CHEADLE AND
JOHN GEEL
W e live in a world where debt
has become a part of life.
As much as we are certain
that the sun will rise in the morning,
we know that we will fund high value
items using long-term debt. The same
applies to our governments which we
rely on to make sensible and consid-
ered decisions on our behalf.
Post the 2008 global financial cri-
sis, bank funding has become moredifficult to obtain. As a result, African
governments, which desperately need
to grow their economies to alleviate
large scale poverty in their countries,
are turning more and more to domestic
central government marketable debt
instruments (“Government Market-
able Debt”) and sovereign debt as an
alternative method of funding their do-
mestic development requirements.
Infrastructure and the ability to
provide electricity are major inhibitors
to growth in most African countries
and the lure of government marketable
debt and sovereign debt as a method of
funding capital intensive infrastruc-
ture projects is very strong.
The five largest economies in Af-
rica, namely Nigeria, South Africa,
Egypt, Morocco and Kenya are all
restrained, to some extent, by poor
infrastructure, including their ability
to provide electricity.
Based on the World Bank 2015 Ease
of Doing Business Survey the ability of
these five countries to provide electric-ity (calculated using the formula 1-(rel-
evant countries rating per the survey /
the total number of participants in the
survey) is as follows: Nigeria one per
cent, South Africa 16 per cent, Egypt
44 per cent, Morocco 52 per cent and
Kenya 20 per cent.
Similarly, the extent that infra-
structure deters investment in these
same five countries, according to the
participants in the Frasier Institute
Annual Survey of Mining Companies
2014 is as follows: Nigeria 89 per cent,
South Africa 43 per cent, Egypt 45 per
cent, Morocco 31 per cent and Kenya
38 per cent.
The attractiveness of using govern-
ment marketable debt and sovereign
debt is compounded by the numerous
publications and research documents
promoting the usefulness of these in-
struments as a viable method of fund-
ing for African governments.
In considering whether the as-
sumption of additional government
debt is really an option, African gov-ernments need to carefully consider
a number of factors, including most
importantly their existing debt posi-
tion on a holistic basis.
The published debt figures for the
countries of the world tend to be split
up into total domestic government
debt and sovereign debt with the result
that each governments’ total indebted-
ness is not that easy to establish. Total
domestic government debt for African
countries has generally increased be-
tween 2013 and 2014. The five Afri-
can countries with the highest levels
of total domestic government debt as
a percentage of gross domestic prod-
uct (“GDP”) for 2014 are Zimbabwe
at 181 per cent, Egypt at 94 per cent,
Morocco at 77 per cent, Ghana at 73
per cent and Mauritius at 61 per cent.
Kenya at 59 per cent and Mozambique
and South Africa at 47 per cent each
are also among the more indebted Af-
rican countries.
If the sovereign debt owing by Afri-
can countries is brought into the equa-
tion, the total debt position for certain
countries becomes fairly concerning,
particularly against the current back-
drop of declining global mineral prices,
declining global foreign direct invest-
ment (“FDI”), inadequate energy sup-
plies, lower growth rates and weaker
exchange rates.
Useful tool
In conclusion, Government Market-
able Debt is a useful tool available to
African governments to fund much
needed infrastructure projects and
power initiatives.
However, the ability of improved
infrastructure and electricity genera-
tion to contribute to each countriesanticipated GDP growth and FDI
inflows needs to be compared to the
cost implications of incurring addi-
tional government debt and the gov-
ernment’s ability to fund interest and
debt repayments timeously.
The potential negative cash flow
implications of paying interest and set-
tling government debt that is denomi-
nated in a foreign currency, particular-
ly the continuously strengthening US
dollar, also needs to be considered.
Cheadle is Associate Director,
Deal Advisory and Capital Markets
at KPMG and
Geel is Managing Partner, Deal
Advisory at KPMG
OPINIONS I REVIEWS I AN ALYSIS
Workers build the Grand Renaissance Dam near the Sudanese-Ethiopian border. Infrastructure and energy provision remain
key challenges for Africa. AFP
FUNDINGGovernments must consider cost
implications of incurring additional debt and
ability to fund interest and repayments
Is issuing debt inst≥uments
a viable option fo≥ Af≥ica?
Other Voices
Asa Bennet, The Telegraph
Jeremy Corbyn doesn’t want to sit in N
He wants to protest outside it. The Lab
Party is pretending that voters don’t ex
Imagine you are the leader of a politica
ty. That party hasn’t won a general ele
for a decade. It’s unlikely to be in a pos
to win an election for another decade.can you do? If you’re Corbyn, you do s
thing that is breathtaking in both its au
ity and its simplic ity. You just pretend t
voters don’t exist. You simply ignore th
Jeremy Corbyn
Britain’s Labour Party lead
Barack Obama
US president
Michael Hudson, International
News
In his Orwellian September 28, 2015 sp
to the United Nations, President Obam
that if democracy had existed in Syria
never would have been a revolt agains
sad. By that, he meant Isil. Where there
democracy, he said, there is no violenc
revolution.This was his threat to promo
revolution, coups and violence against
country not deemed a “democracy”’. H
redefined the word in the internationa
cal vocabulary.
Aditi Lalbahadur, Mail & Guardi
The principles that South Africa applie
riving at its foreign policy decisions are
always clear. There is plenty of evidenc
show that Jacob Zuma’s government
to balance multiple interests while be
sponsive to the context within which i
emerge. But the principles that South
applies in arriving at its foreign policy d
sions are not always clear. This makes
ficult for observers to understand, if th
not attuned to these multifarious facto
the weighting that they are afforded.
Jacob Zuma
South Africa president
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10 BUSINESS DAILY | Thursday October 1, 2015
W e are all waiting with bated
breath to see whether scien-
tists’ dire predictions of El
Niño will happen. Of course it the re-
sponsibility of the scientist to warn us,
and ours to prepare.
What raises eyebrows is our reaction
to disaster predictions. We react the same
way our great grandfathers would have
reacted, with characteristic fatalism
borne of our cultures. We attribute oc-
currence of future events to God. We
throw our hands in the air and say, ya
mungu ni mengi .
It is a defeatist cultural belief. Many
countries have accumulated enormous
amount of data to be able to predict
many future events. We must take it as a
certainty and begin planning for its oc-
currence.
National and county governments are
showing off with their huge budgets set
aside to fight El Niño. In any strategy, it
is not the budget that fights – it is hearts
and minds that are important. I would
hope by now that residents of Budalangi
and Nyando river catchment areas, low-
er Tana delta and informal settlements
along the river banks of Nairobi, espe-
cially in Kibra, Mukuru and Mathare have
been moved to higher grounds.
We also must be cognisant of changing
patterns of flooding. Torrential rainfalls
in Ngong Hills will devastate residents
of Ongata Rongai more than ever before.This is because we now have many peo-
ple living on the slopes whose houses act
as water collection points that feed the
raging floods downstream.
It is imperative that we map out pat-
terns of settlement and their environ-
mental impact. We are seeing more and
more flooding in the Rift Valley that has
never had a history of flooding. Last year,
flooding in Narok killed 15 people even
as we failed to address the bigger issueof environmental degradation.
We have refused to relate our own
actions to the effects of climatic change
and what we see on the ground. Flood-
ing in Narok was a direct consequence
of the depletion of the Mau Forest and
settlement patterns. In April 2012, seven
church youths died in Hells Gate, which
lies a few kilometres from Naivasha and
Mau. Yet we never use historical facts
to inform and prepare those who may
be affected.
We must connect the dots of disaster
points to problem sources if we want to
deal sustainably with environmental
disasters. Nairobi and its environs are
growing haphazardly when virtually
every city on the globe aspires to be a
smart city. A smart city as defined by
Southampton City Council, “uses digital
technologies or information and commu-
nication technologies to enhance qual-
ity and performance of urban services,
to reduce costs and resource consump-
tion, and to engage more effectively and
actively with its citizens.’
Unfortunately, we politicise even
the science of planning. Recently, a
prominent politician opposed the Ki-
dero drums. This traffic experiment was
conducted by a globally respected firm
that has executed many smart cities plans
globally but its work was threatened by
a political populist.
Although initially frustrating, it has worked in Westlands and other areas
by unclogging the flow of traffic in key
arteries.
It is such experiments that we m
emulate now in order to get it r
during emergencies. Even without
emergency, you can die in the tra
jam in Nairobi today while being ta
to hospital in an ambulance. Most d
ers, perhaps because they never wen
proper driver training schools, find bulances a bother and hardly create
space for them to pass.
So no matter how much money
have as a war chest for any disaste
is pointless if our culture on the ro
remains backwards. We need mult
simulation and punishment to ignor
drivers to attain the level of preparedn
needed to see us through El Niño
similar disasters in the future.
Many of the drainage systems
clogged in major cities including th
that are claiming to have set aside fu
for the impending disaster. Logic wo
dictate that some of the money be u
to unclog the drainage systems.
Big cities must link up with mo
network operators and broadcaster
collaborate especially in the use of S
as well as broadcasts to inform peop
disaster points.
In the past, we have been stuck on
impassable highway for hours when S
or broadcast can inform people to
alternative routes. By law, broadcas
are supposed to give a few minutes
public information such as emerge
and disaster broadcasts.
This facility must be used ahea
time to educate drivers to avoid us
roads and to allow emergency vehi
deal with problems more effectively
Former British PM Winston Churc
once said: “Plans are of little importa
but planning is essential.”The writer is an associate profes
at University of Nairobi’s Busin
School
Let’s p≥epa≥e adequately fo≥ El Niño
BITANGE NDEMO
PREPAREDNESS
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Thursday October 1, 2015 | BUSINESS DAILY
The troubles with Yahoo’s
spinoff of Alibaba could last
longer than Marissa Mayer.
The internet firm’s boss says thecompany still plans to rid itself of
a $22 billion stake in the Chinese
e-commerce company. Whether
the deal will be tax-free, though, is
an issue that authorities could take
years to resolve.
With Yahoo’s business stagnant
and competition rising, the chief
executive may be gone before the
wrangling ends. If everything goes
as planned, the $28 billion company
could save more than $6 billion in
payments to Uncle Sam.
Earlier this month, however, the
Internal Revenue Service declined to
say it would approve the transaction,
stating that the income consequenc-
es of spinoffs were under review. Yahoo might still realize the tax
benefits if it closes the transaction
before year’s end, because the IRS
said it will not apply any new re-
strictions retroactively. But there’s
no guarantee the Feds won’t chal-
lenge the deal in any event. The com-
motion draws even more attention to
Mayer’s failure to rejuvenate Yahoo
since she took the helm three years
ago. Revenue from the company’s
mobile, video and social-networking
businesses did grow 60 per cent last
quarter from a year earlier, and it now
accounts for about a third of all sales.
Unfortunately, those businesses pay
handsomely to acquire internet traf-
fic. Strip out these costs, and Yahoo’srevenue was flat. Meanwhile, income
next year is projected to be about half
of what it was in 2012.
Turning things around won’t
get any easier. Advertising is a cycli-
cal business, and the U.S. economic
recovery is getting long in the tooth.
The end of Yahoo’s search agreement
with Yahoo Japan in 2017 may vapor-
ize $150 million of annual EBITDA.
The rise of advertisement blockers
will also hit the company’s rapidly
growing mobile business.
And Facebook is sucking up a
greater chunk of internet advertis-
ing dollars, thanks to its intimate
knowledge of its users. No wonder
enthusiasm for Mayer seems to befading. Her appearance this week at
an interactive advertising conference
in New York attracted far fewer fans
than a year ago.
Yahoo has had six chief executives
over the past decade. None has man-
aged to lead the company to success.
It may be time to admit that the task
is too much for any mere mortal.
The author is a Reuters Break-
ingviews columnist
ROBERT CYRAN
CHALLENGES
Yahoo’s Alibaba spinoff t≥oubles may outlast boss
EDITORIAL& OPINIO
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12 BUSINESS DAILY | Thursday October 1, 2015
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Thursday October 1, 2015 | BUSINESS DAILY
well over 500 million barrels of oil are stored
in large above-ground tanks. The facility at
Shibushi, for example is just off-shore. Fol-
lowing the catastrophic earthquake and
tsunami which struck Japan in 2011, calls
were made to expand the country’s oil stocks
in case of crises in the future which might
hamper oil distribution again.
The International Energy Agency (IEA)oversees the release of oil from a wide range
of reserves internationally. Martin Young is
head of the agency’s Emergency Policy Divi-
sion: “When a country signs up to the IEA
there are various obligations,” he says. “One
of the key obligations is to hold oil stocks
equivalent to 90 days’ imports.”
Specialised storage
But not all countries have salt domes to store
oil underground. Nor do all countries even
have large, specialised storage facilities
for SPR purposes. The UK, for instance,
has neither.
“What the UK has is an obligation on
industry to hold oil at their existing sites
above what they would normally do,” ex-
plains Young. That oil is quietly kept aside by firms so that the government can access
it immediately, if and when it’s needed.
Two nations which are not members of
the IEA, India and China, have in recent
years ploughed funds into their own SPRs.
The Chinese in particular have ambitious
plans. A diverse array of storage locations,
dotted across the land will, it is hoped, even-
tually store almost as much as the Ameri-
cans in a combination of state-owned facili-
ties and commercial stockpiles.
The Chinese don’t have the luxury of salt
caverns and have to opt instead for much
more expensive storage above ground in
tanks. They’re easy to spot on Google Earth
and in satellite photos – just look for the
rows of large white dots. The SPR site in
Zhenhai is just one of these and it currently
holds its full capacity of 33 million barrels.
“It was big,” says Young, who visited the
location a few years ago. “What you see is
a whole load of oil tanks co-located with a
couple of oil refineries.”
Narongpand Lisapahanya, an oil and gas
analyst at investment group CLSA, says that
spending money on developing an SPR is all
part of China’s plan to be treated seriously
as a global superpower. “If you’re going to
be a superpower, you’re going to have to
have the reserve,” he says with a laugh. “Ithelps you become part of treaties globally. If
another superpower, during energy events,
asks for a release of reserves then China can
now take part.”
No modern superpower, then, is com-
plete without an SPR to call its own. While
the growth of reserves around the world is
generally welcomed, there are some who
worry that countries outside the IEA could
use their reserves to manipulate global oil
prices by selling off stocks at opportune
moments.
Of course, mitigating nasty price spikes is
exactly why SPRs were invented in the first
place, as Carmine Difiglio at the US Depart-
ment of Energy explains: “Protecting the US
economy from sharp increases in domestic
petroleum product prices was the purpose
of the SPR in 1975 and it remains the pur-
pose of the SPR today,” he says.
But there’s an important line to draw
between that and using an SPR for ad hoc
manipulation of the world’s markets. On this
point, Martin Young is emphatic: “The oil
stocks are not there for price management
as such,” he explains, “they’re there to cor-
rect a shortage in the market because of a
NEWS INDEPT
supply disruption.” There’s a continual debate
about how SPR stocks should be used, though.
Some people think releases could be more ag-gressive while others question whether the
US has always taken full advantage of its SPR
oil, which is valued at roughly Sh4.6 trillion
($43.5bn).
“For some folks, 700 million barrels in the
ground just looks like a gigantic pot of money,”
comments Sarah Ladislaw, at the Centre for
Strategic and International Studies in Wash-
ington DC.
Few, though, would support initiatives to
fundamentally change how SPRs are used – in
the US or elsewhere. The emphasis is definitely
on planning for emergencies and mitigating
supply problems.
Governments and the IEA prepare for such
situations by working out how they would draw
oil from SPRs in the event of a crisis.
There are even specialist firms which help
with this sort of planning, such as EnSys, which
has developed a sophisticated computer model
to simulate future pricing fluctuations in the
oil industry.
Geopolitical mechanisations
This expertise helps EnSys to advise groups
which control SPRs as to when and why they
might consider distributing oil to local re-
fineries. As CEO Martin Tallett explains, it’s
a numbers game. By how many barrels will
your imports be short during a given crisis?
How much would have to be released from an
SPR to ease that?
“What we would do is sit down with some-
body and say, OK, there’s disruption in the Mid-
dle East, maybe North Africa as well,” he says.“And we really start from the numbers rather
than spending a lot of time understanding in-
depth the geopolitical machinations that could
have caused the disruption.”
As governments and energy bodies continue
planning for the worst, oil stockpiles only look
set to get bigger and bigger. It’s obvious that
the US and many other countries believe their
SPRs are a good investment.
Despite all the preparations, it’s still possi-
ble that, during a future crisis, oil might not be
distributed quickly enough from the strategic
reserves. Would we get a repeat of 1973? Bob
Corbin, for one, won’t say: “I wouldn’t want to
speculate on what could or could not occur,” he
comments. “We’re prepared to deliver when-
ever we need to.”
-BBC
A man walks from a Lagos gas station with petroleum containers during a 2012 shortage. States now
opt to have petroleum reserves to minimise adverse economic effects of shortages. FILE
A man sits outside a closed electronics shop in Tokyo. Many traders were forced to close shop
after the economy shrunk in 2009 due to an oil crisis. Japan today has petroleum reserves. AFP
Af≥ican statesapp≥ove oil andgold tax to pay
fo≥ child≥en’s foodCongo-Brazzaville, Guinea, Mali and Niger have agree
to divert a portion of state revenues from oil, gold
phosphate and uranium to a UN fund to fight child
hood malnutrition.
From 2017, $0.01 (£0.07) from every barrel of o
and $0.60 from every gram of gold will go to pay fo
supplements.
The scheme is expected to raise about Sh10.5 bi
lion ($100m) a year.
Chronic malnutrition in sub-Saharan Africa a
fects more than one in three children under five, th
UN says.
The scheme called Unitlife, which will be man
aged by the UN children’s agency (Unicef), was an
nounced at the UN’s annual gathering of world lead
ers in New York.Ending hunger was one of 17 Sustainable Develop
ment Goals launched by at the UN on Friday.
The UN says it would take around $50bn over th
next 10 years to reduce by 40 per cent the number o
children under the age of five whose growth is stunte
from malnutrition.
The UN’s Philippe Douste-Blazy, who is leading th
Unitlife project, said he hoped to gradually add mor
countries, like top oil producers Nigeria and Angol
A similar scheme already takes 1 euro ($1.12
£0.74) per air ticket from countries signed up to th
it to fund projects fighting HIV/Aids, malaria and tu
berculosis.
RESOURCE RICH CONTRIBUTORS:
CONGO-BRAZZAVILLE
Most of its GDP is from oil;
UNDP Human Development Index ranking: 14
out of 187 nations
GUINEA
Rich in iron ore, bauxite, diamonds and gold; UND
Human Development Index ranking: 179
MALI
One of Africa’s top gold producers; UNDP Huma
Development Index ranking: 176
NIGER
One of the world’s leading uranium producers;UND
Human Development Index ranking: 187
A gold miner pans for gold in Koflatie, Mali, , a few mile
from the border with its southwestern neighbour Gu
ea. AFP
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14 BUSINESS DAILY | Thursday October 1, 2015
The Ugandan shilling lost substantial gro
on Tuesday, touching a key psychologica
level as it was hammered by surging appfor dollars from corporate clients and com
mercial banks. Commercial banks quoted
shilling at 3,690/3,700, weaker than Mon
day’s close of 3,665/3,675. Traders have m
tioned 3,700 in recent weeks as the next
support level, saying breaching it was like
to alarm the central bank and possibly tri
ger an intervention. “There’s significant b
ing interest (for dollars) from both corpor
clients and in the interbank,” said David B
ambe, trader at Diamond Trust Bank.
Most corporate demand, he said, was com
ing from firms in the manufacturing and e
ergy sectors.
Ugandan shilling weakens duto corporate, dollar demand
Rwanda’s central bank held its repo rate
6.5 per cent on Tuesday, saying it was ach
ing its objective of increasing financing to
economy without the exchange rate suff
ing significant pressure.
Rwanda has held the benchmark rate ste
since June 2014, when it cut the repo rate
50 basis points. Central bank governor Jo
Rwangombwa also told a news conferen
that he expected inflation to be in the ran
of 3.3 per cent to 4.6 per cent by the year
end. He had previously forecast that infla
would not exceed 3.5 per cent by the end
2015. Rwanda’s urban inflation rate, whic
the central bank watches for monetary p
purposes, rose to three per cent year-on-
in August from 2.3 per cent a month befo
Rwanda central bank holdsays private sector credit
KAMPALA
South Africa slightly raised its 2015 maiz
output forecast to 9.94 million tonnes aft
silo delivery data suggested the crop was
slightly bigger than previously thought.
South Africa is still expected to reap its lo
est staple crop harvest since 2007, aroun
third less than the 2014 crop due to scorc
drought which pushed prices to record h
in July. The crop in Africa’s biggest produc
will consist of an estimated 4.7 million to
of white maize and 5.24 million tonnes of
low, the government’s Crop Estimates Co
mittee said in its final forecast for the yea
South Africa raises its 2015maize forecast after survey
Burundi’s inflation eased to 4.2 per cent
year-on-year in August from eight per ce
in July, officials said, as a surge in food pr
exacerbated by a political crisis showed
signs of slowing. More than 130 people h
died, the UN estimates, since protesters
to the streets in April, accusing the presi
of breaking the constitution by standing
again in elections. Year-on-year inflation
tially soared, from 4.7 per cent in March,
unrest drove up the price of essential com
modities.
Burundi inflation down to4.2 pc year-on-year in Aug
BUJUMBURA
BRIEFING
JOHANNESBURG
KIGALI
BY BD CORRESPONDENT
N KAMPALA
K enya is among four countries
drafting a new aviation plan
that could hand the ailing na-
tional carrier a new lease of life. Other
countries are Uganda, Rwanda and
South Sudan.
The four countries, which initial-
ly broke away from the East African
Community to form the Northern
Corridor Summit, are on the verge
of concluding talks to form a one air-
space area.
The plan was initially raised by
South Sudan President Salva Kiir and
his Ugandan counterpart Yoweri Mu-
seveni as a way of dealing with Kenya
Airways’ high ticket prices.However, deliberations on the
matter look set to turn around the
airline’s fortunes.
Officials in charge of aviation in
the ministries of transport of the
four countries and their directors
have agreed to liberalise the region-
al air space. Effectively, the agree-
ment could see Kenya Airways and
RwandaAir, the only two operational
national carriers, assume the role in
the four countries, opening them to
bigger volume of business.
The two airlines will get full ben-
efits of a national carrier in South Su-
dan and Uganda airspace.
Regional director Eastern and
Southern Africa in the office of the
International Civil Aviation Organisa-
tion Council Barry Kashambo said a
liberalised airspace will reduce fares
and increase flexibility in travel.
“The whole process is aimed at
eliminating restrictions and providing
guiding principles that will promote
and ease movement of persons, goods
and cargo by air,” Mr Kashambo.
Together, Uganda, Kenya, Rwan-
da and South Sudan will negotiate
air service agreements with foreign
countries as one bloc.
The greatest benefit is expected to
come from the classification of flights
between the four countries as domes-
tic, building on the recent move to
allow use of national identification
card as a travel document to ease
movement within the bloc.
“Partner states should develop
budgets and work plans for the es-
tablishment of a seamless Northern
Corridor airspace bloc and report
progress during the 11th summit,”
said a directive signed by Presidents
Kenyatta, Kagame, Museveni and
Salva Kiir at the June summit meet-
ing in Kampala, Uganda.
AVIATION Regional states in talks to liberalise airspace, opening carrier to more business
Ai≥space deal offe≥s KQ new lease of life
A Kenya Airways plane at Jomo Kenyatta International Airport.FILE
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16 BUSINE SS DAILY | Thursday October 1, 2015
Think Different”, the two
words made famous by
Apple under the leader-
ship of the late Steve Jobs in an
advertising campaign back in
1997 have never jumped into ac-
tive memory as they did when the
team at Ushahidi launched BRCK
Education with Nivi Mukherjee
the head of the new division.
The opportunityThe Jubilee government had
education on its transformative
election agenda and the road to
Vision 2030 would be catalysed by turning education on top of its
head and going digital. The budget
estimates for this run into the bil-
lions of shillings with the digital
dividend projected at several fac-
tors of that.
The problemTethered thinking saw organisa-
tions with vested interest, work
simply with what is available in
the market at face value. Partner-
ships with original equipment
manufacturers (OEM’s) made
the most sense but middlemen
drove up prices. Some even opt-
ed to setup manufacturing plants.
Everyone seemed focused on the
laptop supply side of what is a
massive ecosystem.
A different pathProblems are solved in different
ways but it is always smarter to
increase strategic odds at tackling
a problem by ensuring that you
have as many parts of the solution
matrix under your control or eas-
ily addressable. That is the core of
solution architecture.
The primary consumer at scale,
for whom the benefits of digital
education will be felt most, is the
rural pupil. Despite the govern-
ment’s best intentions at rural
electrification it will take years to
achieve universal coverage. The
structure of our learning also does
not require 100 per cent digital
engagement but that learning is
augmented by technology. There-
fore mobility is key to ensure that
sharing of resources is easy. Form
factor must rank high due the na-
ture of interactions by the target
audience and security considered
given that most schools have basic
facilities.
Here is how the KioKit checks
all the boxes on the solution ma-trix. The BRCK is a ruggedised
WiFi router with an onboard
battery plus storage capable of
connecting 50 devices with con-
tent caching in the expected event
of power and connectivity outage.
The Kio tablet is designed for use
by children and has multimedia
capabilities.
Ruggedised for a longer life
span, they are also locked to dis-
courage theft, with the design also
making it stand out. Controls for a
connected world are also inbuilt
to ensure child safety.
These two main devices; one
wireless router and upto 40 tab-
lets are nested into a mobile unit,
hence the “kit”. The case is hard-
ened, water resistant and designed
to charge the entire system via a
single plug.
The backend also runs on lo-
cal cloud infrastructure by service
provider Angani and the cost ben-
efits of this are immense especially
in light of content streaming and
syncing via mobile data or other
available connectivity options.
As with all innovation, it seems
obvious after the fact.
Mr Njihia is CEO of Symbiotic |
www.mbuguanjihia.com | @mbu-
guanjihia
Diffe≥ent thinking needed
fo≥ digital education delive≥y
Technology MBUGUA NJIHIA
New Ushahidi BRCK Education head Nivi Mkherjee (right) with pupils.FILE
Konza authority signs investmentpartnerships with US business lobbyKonza Technopolis Authority has signed a partner-
ship with an American business lobby, The National
Business League (NBL) aimed at linking up with
international markets. Through the agreement, lo-
cal SMEs stand acquire development opportunities
through export promotion, joint ventures, strategy
alliance and direct investments.
The NBL is national federation of individuals, firms
and associations engaged in business enterprises,
with members drawn from over 37 states whose
aim is to support its member’s access business op-
portunities in deferent parts of the world.
“We have received more than 200 expressions of
interest from investors both local and international.
We have registered good interest from the private
sector particularly the telecom operators and lead-
ing banks who want to locate their da ta centres and
other ICT investments in Konza” said E ng John Tanui
(right), CEO KoTDA.
SimbaPay’s bank accounts opening appearns firm slot in global DEMO eventSimbaPay a digital money transfer provider – is the
winner of the prestigious DEMO Africa 2015 event
which was held in Lagos, Nigeria.
SimbaPay now automatically qualifies for the global
DEMO event that will be held in Silicon Valley, US.
At DEMO Africa 2015, SimbaPay showcased a new
service which
seamlessly op
app.
“We are tota
customers. It
back and sup
new in-app ba
inga Onyanch
in a statemen
that made the
Howard, vice
He added tha
inspiration fo
tions we’re un
DEMO Africa
tive start-ups
best new tech
continent. Th
two rigorous
plicants on th
and effective
Tech bytes
fringement of the digitised books he said that
all the books are encrypted by the IT platform
providers they have partnered with.
“As a matter of fact we are experiencing
more abuse of copyright infringement on our
hardcopy books compared to the digitised ver-
sions,” Mr Ngigi said.
The firm which recorded a 24.4 per cent
drop in net profit following reduced sales in
the year ended June 30, is also targeting county
governments with its digitised content .
The company registered Sh71.7 million inprofit after tax compared to Sh94.9 million
made in the previous year.
During the same period, the firm’s rev-
enues dipped by 39.3 per cent to Sh848.4
million compared to Sh1.4 billion in the same
period last year.
The book-selling company, suffered from
l
i
S
g
s
m
l
R
L
b
p
T
b
a
y
Longhorn publishes is betting on dig-
ital books to reach a wider audience
and grow its revenue.
The only Nairobi Securities Exchange
(NSE)- listed publisher in an interview with
the Business Daily said it has digitised all its books available on hardcopy and are current-
ly available on Amazon and Worldreader.
The firm has also signed a partnership
with Samsung to avail its digitised content
on its devices and is also seeking partner-
ship with local mobile telecommunication
firms to offer the same.
Simon Ngigi, Longhorn managing direc-
tor said that other than reducing the print-
ing costs, digital content is easy and faster
to distribute.
The publisher is also targeting to capture
the tech savvy and the youth who prefer in-
teracting with computer devices as opposed
to hardcopy books.
“What we see in the coming years is that
more and more revenue will be generated
from the digital books,” Mr Ngigi said.“By availing all our books in digital for-
mats, this is not only a win to us but also to
our customers since the pricing of the digital
books is almost half the cost of the hardcop-
ies which offers quite some savings to our
clients,” he added.
To mitigate the chances of copyright in-
Longho≥n bets on digital boo STRATEGY NSE-listed
publisher plans to link
up with local ICT firmsto offer its content on
learners’ devices
Tech
TalkBY OKUTTAH MARK
DigitalBusiness
Pupils use
laptops to
conduct
their studies.
Longhorn
Publishers
has
positioned
itself to
provide digital
content for
learners.
JARED NYATAYA
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Thursday October 1, 2015 | BUSINESS DAILY
ng abroad to
Africa using its
te this win to our
ntinued feed-
e to develop our
service,” Nyas-
ommenting said
t of the team
g pitch was Dan
ring at SimbaPay.
ome reward and
er-driven innova-
ittances space.”
he most innova-
hted some of the
rom across the
e top picks from
of over 600 ap-
tivity, innovation
The final vetting and adjudication was done by a
pan-African panel of judges comprised of entrepre-
neurs, Vice Chancellors and academia.
Commercial Bank of Ethiopia eyes newsoftware to enhance fraud detectionThe Commercial Bank of Ethiopia (CBE) has
launched NetGuardians and TeamMate systems to
further enhance its capacity to protect customers’
data and mitigate against risks.
The systems were implemented by SOFGEN, a lead-
ing global banking technology consulting company,
which is part of the gia nt TechMahindra group of
companies.
The NetGuardians and TeamMate systems enable
the lender to see all transactions across the bank
from multiple angles, in real-time, round the clock,
giving it the ability to immediately detect any suspi-
cious movements and take preventive action.
“Investment in technology that protects against
risks like fraud, data theft and information leaks is
critical to build trust, as well as to our overall serv-
ice delivery and performance,” says Ephrem Meku-
ria, communications manager at CBE.
NetGuardians and TeamMate systems are designed
on the recognition that human behaviour is behind
fraudulent transactions, and it uses smart behav-
iour analytics based on policy rules and predictive
analytics.
With big data to correlate actions from across the
different bank systems, it can identify potential
fraud before it happens. It tracks and audits all ac-
tivities continuously, in real time, and instantly
alerts risk managers to any deviations.
“We recognise that CBE is strongly motivated to
improve fraud mitigation, operational and IT risk
management, transparency, and governance. We’re
committed to providing them with innovative solu -
tions that are directly aligned with their needs and
meet their most serious challenges,” NetGuardians
CEO Joël Winteregg said.
Mobile payments firm Beyonic has
signed a partnership with Mobile
Accord in a deal that will increase
its footprint across Africa with a
focus on NGOs.
Beyonic operating in Kenya
and Uganda says the deal with
developer Mobile Accord will
build its relationship with lead-
ing mobile carriers to expand to
25 additional countries.
Mobile Accord works with 78
mobile carriers in 44 countries in
Africa and Asia, a footprint mak-
ing the deal juicy for Beyonic.
Mobile Accord and Beyonic willimplement the roadmap, starting
with 10 markets: Cote D’Ivoire,
Ghana, Liberia, Malawi, Mozam-
bique, Niger, Rwanda, Sierra Leo-
ne, Tanzania, and Zambia.
Beyonic’s platform enables
businesses to deploy, track and
manage two-way mobile money
payments over multiple mobile
carriers.
“For those working in emerg-
ing markets, cash payments are
riddled with security and logisti-
cal issues. Over the past few years,
mobile money has become popu-
lar both for businesses looking
to move away from cash, and for
individuals who do not have themeans to open traditional bank
accounts,” said Luke Kyohere,
CEO, Beyonic
“Beyonic’s system allows NGOs
and businesses to utilise mobile
money with very little set-up and
we are excited to expand this tool
across Africa”.
Mobile money allows those in
emerging markets to pay or receive
money through even the most ba-
sic phones.
Mobile payments enable fast,
secure money transfers and re-
duce losses associated with cash
payments.
However, until now, business
making mobile payments neede
to connect individually to ever
carrier they wanted to send mone
through, a time-consuming pro
ess for organisations operating i
many countries.
One platform
Beyonic’s cross-carrier solutio
allows businesses to manag
payments in multiple countrie
through one platform.
Using Beyonic’s online inteface, companies can manage pa
ments to employees, aid benefic
aries, and vendors.
The ability to make and trac
payments across any networ
opens up mobile money to bus
nesses that did not have the re
sources to connect to every carrie
in a country.
Beyonic has deals with, amon
others, MTN, Airtel Uganda an
M-Pesa, and organisations lik
Save the Children, Educate! an
Innovations for Poverty Action
Mobile payments fi≥m
Beyonic ta≥gets NGOs
Tech in actionBY OKUTTAH MARK
Beyonic has deals with firms like M
and Safaricom. FILE
\ http://www.Diasporamessager.com
blog of the we
The International Telecommunications Union has awarded President Uhuru Kenyatta a
prestigious award for promoting the use of ICT for sustainable development.
The ICTs in Sustainable Development Award honours the important contributions made by
leaders, on behalf of their countries, towards harnessing the potential of information and
communication technologies (ICTs) for sustainable development.
President Kenyatta was given the award for the impressive progress Kenya has made in ICT
development and the important role technology is playing in achieving development and s
delivery goals.
The award is also meant to encourage nations to seek technological solutions to meet nati
and global aspirations for a sustainable and inclusive future.
NOTE: Blog quotes in this section are edited and do not in any way represent the vi
this newspaper or its editors.
so reflected in the decline
y 30.1 per cent to stand at
n the turnover was miti-
t saving in the company’s
ution costs in the exports
aid in a statement issued
digital books comes on the
nment initiative to avail all
r devices starting January.
materials to be used must
igital format.
ators and local universities
ped to reap big from Ken-
ital Literacy Programme.
e ICT Authority chief ex-
ecutive said time was long overdue for Ken-
ya’s education sector to go digital, adding that
opportunities presented by the shift far out-
weigh the costs.
“The next phase of the knowledge economy
will require a smart society where people can
exploit their talents, identify opportunities
and be able to grow with those opportuni-
ties,” he said.
Last week David Waweru the Kenya Pub-
lishers Association chairman pointed out that
the initiative will only pay off provided that,among other things, freedom of the Press is
preserved by stakeholders.
“The spirit of digital is to provide more op-
portunities to readers, writers, and content
creators; not limiting options. It is about greater
liberalisation of content creation and provi-
sion, not about consolidation,” he said during
the launch of the 18th Nairobi International
Book Fair at Nairobi’s Sarit Centre.
“As publishers, we must engage top gear in
creating digital content. Having said that, we
believe that the digital book will coexist with
the physical book; the two are not mutually
exclusive,” he added.
The Kenya Institute of Curriculum Devel-
opment (KICD) also organised a conference
from yesterday to October 2 that features re-
nowned researchers, innovators, and practi-
tioners across all levels of education in Kenya,
providing delegate’s with insights on the latest
trends and practical tools for the advancement
of mobile and online learning.
“Advancements in technology are not lim-
ited to just improving how processes or ma-
chines work, but are now taking centre stage
in how teaching and learning occur,” KICD said
in a statement.
Other than the publishers’ computing de-
vice manufacturers have recently unveiled
devices targeting e- learning.Last week BRCK Education, a division
of BRCK - a Nairobi based technology firm
–launched its BRCK KioKit into the market.
The tablet, a component of a portable kit
made up 40 ruggedised BRCK Kio tablets that
cost Sh524,497 ($5,000) will be running web-
based content and locally cached videos that
will offer the pupils exposure to educational
information. A piece cost Sh10,385 ($99). The
firm has also entered into partnership with sev-
eral international and local organisations such
as Pearson, Intel- Education, e-Limu, Know-
Zone, and e-Kitabu in an effort to refine learn-
ers’ experience of accessing digital content.
“We wanted to take a holistic approach to
education, hence the design of an easy to use
digital solution that is uniquely tailored for the
African environment. We are deploying a con-tent-agnostic solution that allows us to curate
localised and culturally relevant digital content
that will improve the learning experience and
give a digital edge to millions of children across
the continent,” said Erik Hersman, BRCK CEO
during the launch.
o open new ≥evenue chapte≥
DigitalBusine
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18 BUSINESS DAILY | Thursday October 1, 2015
lem as it was last year, though the credit for that
lies with Android.
The small, yet chunky Phonejoy Gamepad 2 is
almost unchanged in terms of design, and while
it’s a little too thick to just slip into your jeans,
it’s small enough to put into a jacket pocket or
cargo pants.
The interlinked metal section in the middle is
reassuringly solid looking, and springs back with
a snap — this might change over time, but one
year down the line, the Kickstarter edition of the
original Phonejoy is still feeling pretty solid.
The LG G3 just about fits into the Phone-
joy Gamepad 2, though the ideal size is a little
smaller - around 5-inches. If your phone is bigger
than six inches then it won’t fit in the controller
— you’ll have to prop it up on a stand while gam-
ing instead.
The buttons all feel very solid, and clicky. The
D-pad is still a little spongy though — it’s better
than last year, but this is one area where there is
still room to improve.
The same is true for the analog sticks — they’re
a definite improvement over the original, but
compared to the full controller style gamepads
like the Amkette Evo Gamepad Pro, this is still
pretty short, and not as satisfying. It’s a necessary
compromise to allow you to slip your Phonejoy
into your pocket, but it does feel a little stiff as
a result.
Connecting the Phonejoy Gamepad 2 to your
phone is really simple, and the companion app
allows you to find games you can play easily. It
divides games into different genres, and also
shows the prices, so you can scoop up the best
free games if you want. The Phonejoy app also
includes a section for emulators, in case you want
to have some retro fun.
The overall experience of using the new Phone-
joy Gamepad 2 is great.
- GADGETS 360
The Phonejoy looks like a miniature con-
troller — and can be used like one, if you’re
gaming on a tablet or a smart TV — but it
actually splits down the middle and can be
stretched like an accordion to wrap around
your phone. The result is something like a
PlayStation Portable, and if you’re a fan of
the idea, you can install a PSP emulator from
the Play Store, assuming you have a stash of
legal PSP games available, of course.
In our review of the original Phonejoy
gamepad, we’d noted that we really liked the
ittle gamepad, and found it comfortable to
use with (and without) a phone. There were
a few issues though — the shoulder buttons
were spongy, and the analog sticks were too
short to use comfortably, and worst of all,
there were some pretty serious compat-
ibility issues.
The new version of the Phonejoy, which
we’ve been using for a week now addresses
all these issues, and the result is a controller
that is a delight to use with a battery that is
still going strong after 10 hours of gaming.
Compatibility is also not as much of a prob-
GoPro, the popular action camera maker, has launched its
new entry-level Hero+ action camera.The GoPro Hero+ features Wi-Fi and Bluetooth connectivity
but skips the LCD touchscreen on the top-end offering.
It can record videos at 1080p (full-HD resolution) at 60fps
and click images at 8-megapixel, offering an image resolu-
tion of 3264x2448 pixels.
The new action camera supports up to 64GB Class 10
microSD cards. Similar to the other GoPro action cam-
eras, the Hero+ is also rugged,
durable and waterproof up t
40 metres.
The company claims that the
GoPro Hero+ can automatically
adjust frame rates according to
lighting conditions.
Phonejoy Gamepad 2 offe≥s And≥oid
enthusiasts g≥eat use≥ expe≥ienceUPGRADE New version of the brand fixes weaknesses
in first model making a delight to use with long battery life
DigitalBusiness
Apple Watch software enhances features
Apple Watch’s new software brings useful enhance-
ments, though it’s not the same as getting a new watch.
That same watch can now do more. For the first time, non-Aple apps are able to display video and use the watch’s senso
and controls. In addition, the watch now works with Wi-Fi, e
tending how far you can go without a phone with you. These
enhancements address many of
my initial frustrations with the
watch. But the hardware itself
isn’t changing, apart for some
new colour and band choices. The
watchOS 2 update for Apple Watch
arrived Monday, delayed by a week
as Apple fixed an unspecified bug.
Gadget reviewsGADGET360
GoPro unveils Hero-action camera
Specs
The small, yet chunky Phonejoy
Gamepad 2 is almost unchanged in
terms of design.
It’s a little too thick to just slip into
your jeans, but small enough to put into
a jacket pocket or cargo pants. The buttons all feel very solid, and
clicky.
Most people are familiar with blackouts;
they are when the lights go out due to loss of
electricity. This can be caused by a number of
things, such as downed power lines, sched-
uled shutoffs, or some other event that caus-
es power to be cut.
Most people experience this a handful of
times a year and, depending on the situation,
blackouts aren’t that big of a deal. However,
they can wreak havoc on your electronics at
home or in your office. But why is this?
It’s because a blackout is exactly the same
as pulling the power cord right out from the
back of your computer. Aside from the fact
you might lose whatever file it is you were
working on, they will also force all of your
programs and your operating system to stop
instantly.
Now that you know about blackouts, let’s
look into the lesser known brownout. A
brownout is when electricity dips, surges,
or is just all around unclean. If you think of
electricity like water, it normally comes into
your house at a fairly consistent rate with the
same amount of pressure.
Now, normally brownouts aren’t that big of
a deal, but they can cause some of the same
issues associated with power outages, and
they can often be paired with spikes in power
also known as power surges.
Power surges are exactly what they sound
like, with excess power flowing into your
house.
The worst part about power surges is that
under most circumstances you can’t see
one actually happen. They are often very fast
and their effects are not immediately known.
Luckily, though, most modern electronics
are designed with some resilience to power
surges.
Let’s talk about ways we can mitigate the
effects or at least protect your electronics
from them.
First of all, buy a surge protector. I could go
into the nitty gritty of what to look for, but
buy a good brand , and the higher number
of Joules, the better. Generally, a good surge
protector will be about $30. Surge protectors
will help protect your electronics, are pretty
cheap, and give you a ton more outlets to
use! So buy one.
So what about brown outs and black outs?
Well the answer is a UPS or (Uninterrupted
Power Source). Basically, this is just a battery
for your electronics. The idea of a UPS though
is not to power your electronics for a long
time. Rather, it’s to power your electronics
for just long enough so that you can do a safe
power down.
- TECH TALK
How to protect computers against blackouts and power surges
Tech Demystified
HP announced a new line of enterprise class multi-
function LaserJet printers. The new printers aim to secure
the businesses’ print environment.
HP cited a Ponemon Institute study that showed the grow-
ing importance of printer security, stating that 56 per cent
of enterprise companies ignore printers in their endpoint
security strategy, and 64 per cent of IT managers believe
that their printers are likely to be infected with malware.
The new enterprise range of printers and MFPs incorporate
three new proprietary features. HP SureStart checks for the
integrity of the BIOS at startup, and is capable of automati-
cally restoring a golden copy of the BIOS stored in a pro-
tected part of the system when compromised.
HP announces new line of LaserJet printers
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MONEY & MARKETSNEWS I REVIEWS I ANALYSIS
BY GEORGE NGIGI
Companies holding unclaimed assets
have been given a month to submit
them to the government or be penal-
ised.
The Unclaimed Financial Assets
Authority (UFAA) said yesterday it
would impose the penalties this year
after giving a four-year grace period
for companies to comply.
“The Act came to being in October
2011 so holders of unclaimed assets haveno excuse not to surrender
– we will impose the pen-
alties” said chief executive
Kellen Kariuki.
Companies are re-
quired to submit un-
claimed assets in their
books as at the end of
June each year to the
authority by the first day
of November of the same
year. Failure to forward the assets at-
tracts a penalty equal to 25 per cent of
the value of the assets that should have
been submitted.
The authority said institutions
which were not sure of the asset value
they were holding would be allowed to
submit what they were certain of be-
fore the deadline and seek a two-month
extension to surrender any remaining
amount.
Some of the assets that are consid-
ered unclaimed include cash in bank
accounts for a period exceeding five
years without any owner-initiated ac-
tivity such as withdrawal or request for
a statement. Other unclaimed assets
include bankers cheques not cashed for
two years, contents in safe deposit box-
es unclaimed for more than two years,
court awards exceeding two years, and
utility deposits held for over two years
since termination of services.
Matured life insurance policies un-
claimed for more than two years and
shares, whose dividends have not been
collected for more than three years, are
also in the list.The authority has collect-
ed Sh3.4 billion and expects
to double the amount by end
of the year should there be
compliance with this year’s
deadline. Banks have submit-
ted the bulk of the assets at 62
per cent of the total.
Ms Kariuki said the au-
thority had expected higher
collections from insurance
companies, pension schemes, saving
societies, saccos and government insti-
tutions but there was low compliance
levels in those sectors.
The law gives the authority powers
to audit any premise to ensure compli-
ance. It also compels the institutions to
provide information to the authority.
Organisations that have complied
include KCB Group which has remit-
ted the highest sum of Sh700 million,
Standard Chartered with Sh500 mil-
lion, the defunct Kenya National As-
surance Corporation Sh340 million and
Barclays Bank at Sh200 million.
Regulations on the unclaimed finan-
cial assets are yet to be passed by Par-
liament. The authority, however, main-
tained companies have to comply with
the Act because the rules were to give
guidelines on how the authority was to
pay out collected funds and not how the
holders were to submit the assets.
The Kenya Bankers Association
(KBA) supported the UFAA’s posi-
tion urging its members to observe
the deadline.
“The regulations are yet to be pub-
lished and various institutions may be
waiting to ensure consistency in com-
pliance, however, this should not de-
ter reporting and remitting unclaimed
funds, particularly now that the author-
ity is operational,” said chief executive
Habil Olaka.
Upon receiving the assets, the au-
thority’s first mandate is to search for
the legal owners of the assets or their
heirs — in cases where the owners are
deceased.
The authority has not paid out any
of the beneficiaries who have laid claim
of assets forwarded to them due to ab-
sence of the regulations. The benefi
have, however, been given an unde
ing to be paid once the guideline
approved.
Claims from the fund, so far,
been low and are estimated at
million.
The authority is pushing to
unclaimed assets held by comp
disclosed in financial reports to
tracking. Public listed companies
been disclosing unclaimed divid
but other assets remain confiden
Agency gives fi≥ms 30 days to ≥emit unclaimed assetsULTIMATUMAuthority tells companies to comply
or risk 25pc penalty of asset value in their possession
Unclaimed Financial Assets Authority chief executive Kellen Kariuki speaks at the Stanley Hotel in Nairobi yesterday on pu
awareness campaign to run in October.SALATON NJAU
Holde≥s of
unclaimed
assets have no
excuse not to
su≥≥ende≥
KELLEN KARIUKI, UFAA BOSS
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20 BUSINESS DAILY | Thursday October 1, 2015
The shilling strengthened
four-week high yesterday du
tight liquidity and commer banks offloading their long
lar positions, while stocks w
down for a fourth straight
sion.
At close of trade at 1
GMT, commercial banks quo
the shilling at 104.55/75 to
dollar, compared with Tuesd
close of 105.25/35.
“It’s due to people unwi
ing their long (dollar) positi
and also the overnight rates
quite punitive,” a senior tra
at one commercial bank sa
Lending rates
Tight shilling liquidity in
money markets has driven onight lending rates to shoo
to a high of 28 percent from
per cent earlier this month
A second trader said
central bank’s activity in m
ping up liquidity had cont
uted to those high rates. “T
have made it very expensiv
run any long foreign curre
position,” he said.
- REUTERS
Shilling fi≥ms to 4-week highstocks down
BY JOHN GACHIRI
The Capital Markets Authority
(CMA) is stepping up prepara-
tions for the introduction of an
exchange for derivatives, which
are used for hedging risk.
The CMA has partnered
with the Dubai Financial
Services Authority to train
local players on how the pro-
posed exchange will work.
The derivatives market is
one of the key targets for the
CMA and so far the regulatorshas set out the rules for mar-
ket players.
“The establishment of a
vibrant derivatives markets
in Kenya is one of the key
projects under the Capital
Market Master Plan whose
delivery is key to deepening
the capital market in Kenya,’’
said CMA acting chief execu-
tive Paul Muthaura.
He added that the regula-
tors has blended international
best practices and local reali-
ties in coming up with regu-
lations for the derivatives
market.
Kenya’s regulatory frame-
work on the planned exchange,
he said, has been aligned to the
International Organisation of
Securities Commissions princi-
ples and takes into account the
country’s status as a develop-
ing economy.
“The establishment of
a derivatives market is ex-
pected to attract both domestic
and foreign participation and
to benefit all sectors of the
economy through, among
others, providing products
to address volatility in in
est rates, currency and, in
longer term, volatility in p
es of commodities,’’ said
Muthaura.
The Nairobi Securities
change (NSE) also plans to
up a derivatives market
has in the past run ma
simulation with brokers.
Services hub
“We are set to launch our de
atives market, Real Estate
vestment Trusts and ExchaTraded Funds, all with an
of broadening our prod
offering and deepening
capital market while furt
strengthening our positio
the financial services hub
East and Central Africa,”
NSE chief executive Geoff
Odundo in August.
Derivatives are so ca
because they are der
from other assets — ca
underlying assets — such
equities, bonds or mortga
They are intended to mitig
against risks an investor m
incur when prices of the as
change.
CMA gea≥s up fo≥ launchof de≥ivatives exchange
Mr Paul Muthaura, the acting
CMA chief executive. FILE
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Thursday October 1, 2015 | BUSINESS DAILY
Chief among the questions is whether
the world’s most influential central
bank, along with many of its peers, is
trapped at near zero interest rates as
the economic cycle crests and infla-
tion flatlines, due to a rapid cooling of
China and other emerging economies
and a commodity price slump.
The uncomfortable
prospect of heading intoanother economic slow-
down with no interest
rate ammunition to fight
the downturn is at the root
of much that investment
angst.
“The relative paucity
of the monetary policy
toolkit increases the fragil-
ity of the expansion, with
risks that an adverse shock
could lead businesses and consumers
to retrench and thereby transform a
mid-cycle slowdown into something
significantly worse,” wrote Citi chief
economist Willem Buiter.
Yet by subsequently insisting a rate
rise was still on the cards this year, the
Fed simultaneously removed any low-
rates balm and confused many as to
its ‘reaction function’.
Just which of the global pressures
that stayed its hand only two weeks
ago — weakening China, emerging
markets and commodity prices — will
disappear again by year end?
And if the rise of the dollar is at
least partly behind both those pres-
sures and the below-target U. inflation
rate, then surely every future push to
raise rates will simply strengthen the
currency again and re-ignite the same
chain reaction.
“You can’t run a independent, do-
mestically-focused monetary policy
in this environment,” said Salman
Ahmed, chief strategist at
asset managers LombardOdier, adding that a major
complication is the huge
uncertainty internally at
the Fed about just how
the world’s second biggest
economy, China, is actually
performing.
“What has happened is
that central banks have lost
control to calibrate mone-
tary policy to only domestic
economic data.”
The Fed may be in the hot seat,
but the Bank of England has a simi-
lar dilemma.
The Bank of Japan and European
Central Bank differ only in that there’s
no domestic pressure yet to tighten
policy. But their attempts to avoid
deep deflation and reach explicit in-
flation targets seem to be similarly
sideswiped by global rather than do-
mestic developments. And that’s not
changing any time soon.
In a world that’s wound down very
little of its overall indebtedness some
seven years after the credit crash was
supposed to launch a wave of ‘delev-
eraging’, relatively slow growth and
over-reliance on cheap credit to cope
with that funk has “zombified” global
economies for years to come, Ahmed
added.
And in such a low growth world,
political pressure to bring central
banks into a more centrally-directed
policy framework will only increase.
The debate in Britain has shifted
squarely in that direction already:
the new left-wing leader of Britain’s
main opposition Labour Party, Jeremy
Corbyn, and his finance spokesman,
John McDonnell, are both long-stand-
ing critics of Bank of England inde-
pendence.
McDonnell, who this week assem-
bled a panel of advisers including No-
bel laureate Joseph Stiglitz and French
economist Thomas Piketty, advocates
a ‘People’s QE’ where the BoE would
be instructed to buy bonds sold by a
new national development bank for
infrastructure projects.
And one of those advisers, aca-
demic economist and former BoE
policymaker David Blanchflower,
said on Tuesday Labour was right to
debate the bank’s mandate beyond
pure inflation targeting.
“It should include new objectives
for the monetary policy committee
such as growth, employment and per-
haps even earnings,” he wrote, adding
the Fed’s model of seeking employ-
ment, stable prices and moderate
long-term borrowing rates would
be better.
But given the Fed is itself in a pecu-
liar bind, that model may not impress
some central bank critics.
And the concern among some
economists and investors is that
greater political control may leave
the bank compromised in future to
more extreme, short-term whims of
parties in power.
British economist George Magnus
said there may be a case for better co-
ordination between government and
central bank and some lines between
the two had indeed blurred. But he
warned of the danger of ‘crossing the
Rubicon’ on central bank independ-
ence. - REUTERS
INDEPENDENCE Influence of Fed on monetary
policy erodes regulators’ domestic mandates
Britain’s Labour Party Leader Jeremy Corbyn makes his keynote address on the third
day of the annual Labour Party Conference in Brighton, England on Tuesday.AFP
Cent≥al banks ≥oleunde≥ sc≥utiny on
loss of autonomy
MONEY & MARKETS GLOBA
The ≥elative
paucity of the
moneta≥y policy
toolkit inc≥eases
the f≥agility of
the expansion
WILLEM BUITER, CHIEF
ECONOMIST, CITI
Asia sha≥es on t≥ack fo≥ wo≥st qua≥te≥ly loss in fou≥ yea≥ Asian stock markets rallied yesterdayafter sliding to 3-year lows, but concerns
lingered over slumping commodities
prices and China’s cooling economy.
European markets were set to fol-
low Asia higher, with financial spread-
betters expecting Britain’s FTSE 100,
Germany’s DAX and France’s CAC 40 to
open as much as 1.2 percent higher.
US stock futures rose 0.8 per cent,
suggesting a stronger opening on Wall
Street later in the session.
MSCI’s broadest index of Asia-Pacific
shares outside Japan rose 1.6 per cent
after plumbing its lowest since June
2012 on Tuesday on fears that China’s
slowdown would curb its huge appetite
for commodities and resources.
The index was on track for a 2.9 per-
cent decline in September, extendinglosses for the quarter to 17.7 per cent,
its worst quarterly performance in
four years.
Japan’s Nikkei brushed aside an
unexpected drop in the country’s in-
dustrial output to close up 2.7 per cent,
paring losses for the quarter to 14.1 per-
cent, its deepest since 2010.
“The current environment rep-
resents a winding back of the overly
bullish expectations of both commodity
demand and Chinese growth – to a more
balanced expectation of progressive,
not exponential, growth,” said Angus
Gluskie, managing director of White
Funds Management in Sydney.
Demand for the safe-haven yen
eased as global stocks steadied and
some semblance of calm returned to
markets, but traders said month-end
and quarter-end flows meant that vola-
tility is likely to remain a feature.
The dollar index against a basket of
major currencies edged up 0.2 per cent.The dollar fetched 119.96 yen, having
turned around from a low of 119.24. The
euro slipped 0.1 per cent to $1.1231.
Commodity currencies languished,
with the Canadian dollar slipping 0.1
per cent to an 11-year low of C$1.3407.
Traders said US non farm payrolls
data on Friday could help strengthen,
or weaken, the case for the Federal Re-
serve raising US. interest rates before
the end of the year, thus setting the tone
for the dollar.
The market will also be keeping an
eye on Fed Chair Janet Yellen, who is
due to give welcome remarks at a con-
ference later on Wednesday.
And commodities and global finan-
cial markets face a major test of nerves
on Thursday, when the closely-waChinese Purchasing Managers’ I
(PMI) is likely to show the coun
factory sector shrank for the se
month in a row in September.
China’s CSI300 climbed 1.2 per
helping reduce losses for the qu
to 28 percent. The Hang Seng’s 1
cent gain also helped shrink loss
20 percent for the quarter.
South Korea’s Kospi reversed
lier losses to end the day 1 pe
higher, paring losses to 5.4 perce
the quarter.
Australian shares closed u
percent, for a quarterly decline
percent.
-REUTERS
An investor at the Jakarta Stock
Exchange.AFP
World trade will grow by 2.8 pethis year and could be pegged
further by a US interest rate rise
na’s economic slowdown or Eur
refugee crisis, the World Trade Or
zation said yesterday.
The forecast, revised down
a 3.3 per cent forecast made in A
means 2015 will be the fourth ye
a row with trade growth of less
three per cent, half the annual
age in 1990-2008 before the fina
crisis hit.
The WTO’s forecast implies gr
will quicken this year, from 2.5 pe
growth in 2014. But its expecta
have repeatedly proved overly
mistic as hopes of global econ
recovery have receded.There were still big potential
to its latest numbers.
“These include a sharper-
expected slowdown in emergin
developing economies, the possi
of destabilising financial flows fro
eventual interest rate rise by th
Federal Reserve, and unanticip
costs associated with the migr
crisis in Europe,” the WTO said
statement. The Chinese slowdow
ready caused the WTO to cut its
forecast for growth in Asian impo
2.6 per cent, down from a 5.1 per
projection in April, and Asian ex
to 3.1 percent from the previou
percent forecast.
China’s falling demand was on
jor reason why global trade shra
the first two quarters of 2015, con
ing from the previous quarter b
average of 0.7 per cent. Falling dem
in Brazil and oil and commodity p
also contributed. However, yea
year global growth for the year to
is still positive, at 2.3 percent from
same period of 2014.
-REUTERS
WTO names top ≥isks to t≥ade g≥owth
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Thursday October 1, 2015 | BUSINESS DAILY
Banke≥ seesglobal financial c≥ises th≥eat inclimate changeClimate change threatens global
financial crises and long-term de-
clines in wealth unless world lead-
ers urgently seal a deal to limit it, the
head of the Bank of England said on
Tuesday.
“The challenges currently posed
by climate change pale in significance
compared with what might come,”
Mark Carney told business leaders in
a speech in London. “The far-sighted
amongst you are anticipating broader
global impacts on property, migration
and political stability, as well as food
and water security.”
Speaking as world leaders scram-
ble to lay the groundwork for a new
United Nations agreement to limitclimate change at talks in Paris start-
ing in November, Carney warned that
“the window of opportunity is finite
and shrinking”. His comments come
the day after French President Fran-
cois Hollande warned that if no deal
was reached in Paris, “it will be too late
for the world,” in an address to the UN
General Assembly in New York.
Rising temperatures
Scientists have underlined the ur-
gency of preventing temperatures
rising more than two degrees Celsius
(3.6 Fahrenheit) from pre-industrial
times, although analysts warn the
world is heating far faster.
Several nations and private sector
bodies have promised to cut green-
house gas emissions, blamed for the
severe weather and rising tempera-
tures, but there remain deep interna-
tional divisions over a long-awaited
deal. A Canadian economist who has
been the governor of the central bank
since 2013, Carney said that scientific
evidence indicated “climate change
will threaten financial resilience and
longer-term prosperity”.
He said the number of weather-
related loss events for insurers had
tripled since the 1980s, while infla-
tion-adjusted losses for the sector
had increased five-fold to $50 billion a
year. The “catastrophic impacts of cli-mate change” — including floods and
storms and financial costs of shifting
to a low-carbon economy — will only
be felt over a longer period than the
three to 10 year horizon used in the
financial industry, he warned.
“In other words, once climate
change becomes a defining issue for
financial stability, it may already be
too late,” Carney said.
The Earth is currently on track for
temperatures to rise 3.5 degrees, ac-
cording to Climate Interactive.
A 3.5 degree rise would mean “a
world we cannot adapt to”, accord-
ing to the body’s co-director Andrew
Jones.
-AFP
MARKETDATMARKETDAT
Tracking the markets: Benchmark Index (Latest Data)
World
Africa
USE All Share Uganda
1948.00
0.00
RSE All ShareRwanda
142.3
0.0
NGSE All shareNigeria
29909.44
-796.18
DSE All Share Tanzania
2576.77
0.00
NikkeiTokyo
20620.26
0.49%
Xetra DaxFrankfurt
11027.34
0.38%
SensexMumbai
27878.2
-0.67%
DJ IndustrialNew York
17477.40
0.40%
HangSeng Hongkong
23814.65
-0.74%
JSE All Share IndexSouth Africa
50767.02
-54.16
Jan ‘15 Aug ‘15 Jan ‘15 Aug ‘15 Jan ‘15 Aug ‘15 Jan ‘15 Aug ‘15 Jan ‘15 Aug ‘15
Jan ‘15 Aug ‘15 Jan ‘15 Aug ‘15 Jan ‘15 Aug ‘15 Jan ‘15 Aug ‘15 Jan ‘15 Aug ‘15
Tracking the markets: Benchmark Index (Latest Data)
World
Africa
USE All Share Uganda
1,924.00
-1.64%
RSE All ShareRwanda
135.4
0.00
NGSE All shareNigeria
30,574.01
-0.81%
DSE All Share Tanzania
2,531.08
0.69%
NikkeiTokyo
17,388.15
2.70%
Xetra DaxFrankfurt
9,688.73
2.52%
SensexMumbai
26,154.83
1.46%
DJ IndustrialNew York
16,049.13
0.30%
HangSeng Hongkong
20,846.30
1.41%
JSE All Share IndexSouth Africa
49,976.27
1.20%
WINNERS AND LOSERS - YTD
DTBKenya
TOTALKenya
BATKenya
OLYMPIA CAPITALKenya
TPS EA.Kenya4.35
-1.14%
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield
-1.04
-4.18
0.00%
Jan ‘15 Sept ‘15
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield
42.55
19.20
5.20%
817.00
3.68%
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield
2.26
8.47
3.66%
19.15
2.13%
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield
21.92
9.12
1.20%
200.00
0.00%
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield
29
-2.48
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield
1.54
8.54
7.60%
13.15
0.77%
BarclaysKenya8.35
0.60%
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield
1.29
6.47
4.79%
KenGenKenya47.00
-1.57%
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield
5.63
8.35
4.26%
KCBKenya
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield
10.44
4.98
0.00%
CentumKenya 52.00
0.00%
Earnings per share
Price to earnings ratio (p/e)
Dividend Yield
-0.8
-3.5
0.00
3.
0.00
EvereadyKenya
1
21
4.5
Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘1
Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘1
Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘1
Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘15 Jan ‘15 Sept ‘1
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NAME LOCATION LAST NET.CHNG PCT.CHNG OPEN HIGH LOW CLOSE
DJ INDU AVERAGE NEW YORK 16,049.13 47.24 0.30% 16,001.76 16,118.89 15,942.37 16,001.89
FTSE EUROTOP 100 LONDON 2,727.64 71.46 2.69% 2,655.56 2,728.09 2,655.56 2,656.18
XETRA DAX PF/D FRANKFURT 9,688.73 238.33 2.52% 9,674.61 9,696.13 9,596.95 9,450.40
CAC 40 INDEX/D PARIS 4,464.77 121.04 2.79% 4,433.76 4,468.25 4,413.08 4,343.73
FTSE MIB/D MILAN 21,248.98 522.23 2.52% 21,039.60 21,261.31 20,971.28 20,726.75
SMI PR/D SWITZERLAND 8,516.01 192.53 2.31% 8,449.32 8,526.26 8,428.07 8,323.48
HANG SENG INDE/D HONG KONG 20,846.30 289.70 1.41% 20,795.93 20,939.39 20,683.11 20,556.60
NIKKEI 225 INDEX TOKYO 17,388.15 457.31 2.70% 17,193.84 17,460.97 17,179.40 16,930.84
ALL ORDINARIES AUSTRALIA 5,058.60 100.48 2.03% 4,958.10 5,058.60 4,958.10 4,958.12
STRAITS TIMES/D SINGAPORE 3 ,614.24 5.95 0.16% 3,598.31 3,625.76 3,590.11 3,608.29
SSE COMPOSITE/D SHANGHAI 3,053.32 15.19 0.50% 3,052.84 3,073.30 3,039.74 3,038.14
S&P SENSEX/D MUMBAI 26,154.83 376.17 1.46% 25,986.52 26,179.70 25,918.21 25,778.66
Currencies Global Indexes
Global Markets & Currencies
MARKETDATA
Kenya Shilling
Global Indices
US Dollar
FTSE 100
Global Markets & Currencies
MARKETDATA
Kenya Shilling
FTSE 100
CURRENCY BUY SELL MEAN
US DOLLAR 105.19 105.39 105.29
STG POUND 159.41 159.75 15 9.58
EURO 118.21 118.45 118.33
SA RAND 7.56 7.58 7.57
KES / USHS 34.97 35.13 35.05
KES / TSHS 20.45 20.53 20.49
KES / RWF 6.93 7.01 6.97
KES / BIF 14.70 14.82 14.76
AE DIRHAM 28.64 28.70 28.67CAN $ 78.44 78.61 78.53
S FRANC 108.08 108.32 108.20
JPY (100) 87.67 87.87 87.77
SW KRONER 12.53 12.56 12.55
NOR KRONER 12.40 12.44 12.42
DAN KRONER 15.85 15.88 15.87
IND RUPEE 1.60 1 .60 1.60
HONGKONG DOLLAR 13.57 13.60 13.59
SINGAPORE DOLLAR 73.83 74.02 73.92
SAUDI RIYAL 28.05 28.10 28.08
CHINESE YUAN 16.55 16.59 16.57
AUSTRALIAN $ 73.76 73.94 73.85
SOURCE CBK
DAILY YTD 52 WEEK 3-YR
INDEX (REGION/COUNTRY) CLOSE CHG % CHG % CHG HIGH LOW % CHG % CHG
GLOBAL
THE GLOBAL DOW (WORLD) 2,200.33 -12.27 -0.55 -12 2,639.52 2,200.33 -13.2 4.6
THE GLOBAL DOW EURO (WORLD) 1,846.63 -12.12 -0.65 -5.1 2,305.98 1,752.10 -2.3 9.5
DJ GLOBAL INDEX (WORLD) 288.56 -1.97 -0.68 -10.1 341.62 288.56 -10 4.4
DJ GLOBAL EX U.S. (WORLD) 199.02 -2.86 -1.42 -11.6 246.68 199.02 -15.2 -0.1
ASIA PACIFIC
DJ ASIA-PACIFIC TSM (ASIA-PACIFIC) 1,269.58 -34.41 -2.64 -11 1,619.39 1,2 69.58 -12.8 0.5
ALL ORDINARIES (AUSTRALIA) 4,958.10 -187 -3.63 -8 5,954.80 4,958.10 -6.4 4
S & P/ASX 200 (AUSTRALIA) 4,918.40 -195.1 -3.82 -9.1 5,982.70 4,918.40 -7.1 3.9
DOW JONES CHINA 88 (CHINA) 245.31 -4.89 -1.96 -17.2 408.69 185.44 27.6 8.6
SHANGHAI COMPOSITE (CHINA) 3,038.14 -62.62 -2.02 -6.1 5,166.35 2,290.44 28.5 13.3
HANG SENG (HONG KONG) 20,556.60 -629.72 -2.97 -12.9 28,442.75 20,556.60 -10.4 -0.5
S & P BSE SENSEX (INDIA) 25,778.66 161.82 0.63 -6.3 29,681.77 24,893.81 -3.2 11.2
JAKARTA COMPOSITE (INDONESIA) 4,178.41 57.91 1.41 -20.1 5,523.29 4,120.50 -18.7 -0.7
NIKKEI 300 (JAPAN) 277.30 -13.03 -4.49 -2.5 343.20 238.07 3.8 22.8
NIKKEI STOCK AVG (JAPAN) 16,930.84 -714.27 -4.05 -3 20,868.03 14,532.51 4.7 24
TOPIX INDEX (JAPAN) 1,375.52 -63.15 -4.39 -2.3 1,691.29 1,177.22 3.7 23.1
KUALA LUMPUR COMPOSITE (MALAYSIA) 1,603.32 -5.11 -0.32 -9 1,862.80 1,532.14 -13.2 -0.7
NZSX-50 (NEW ZEALAND) 5,612.42 -86.71 -1.52 0.8 5,957.85 5,132.02 6.4 13.5
KSE 100 (PAKISTAN) 32,214.58 -475.44 -1.45 0.3 36,228.88 28,927.04 8.4 27.8
PSEI (PHILIPPINES) 6,859.29 43.7 0.64 -5.1 8,127.48 6,791.01 -5.8 8.7
STRAITS TIMES (SINGAPORE) 2,787.94 -3.98 -0.14 -17.2 3,539.95 2,787.94 -14.9 -3.1
KOSPI (SOUTH KOREA) 1,942.85 ... CLOSED 1.4 2,173.41 1,829.81 -4.4 -0.8
COLOMBO STOCK EXCHANGE (SRI LANKA) 7,085.38 6.74 0.1 -2.9 7,605.79 6,782.43 -2.3 5.9
WEIGHTED (TAIWAN) 8,132.35 ... CLOSED -12.6 9,973.12 7,410.34 -9.5 1.7SET (THAILAND) 1,348.84 -3.29 -0.24 -9.9 1,615.89 1,301.06 -14.9 1.3
EUROPE
STOXX EUROPE 600 (EUROPE) 339.23 -2.34 -0.69 -1 414.06 310.03 -1.1 8.1
STOXX EUROPE 50 (EUROPE) 2,905.25 -20.28 -0.69 -3.3 3,591.47 2,781.33 -5.3 4.9
EURO STOXX 50 (EURO ZONE) 3,029.86 -9.58 -0.32 -3.7 3,828.78 2,874.65 -6.1 7.3
EURO STOXX (EURO ZONE) 317.56 -1.29 -0.4 -0.7 392.35 288.41 -1.4 9.1
ATX (AUSTRIA) 2,187.68 19.22 0.89 1.3 2,681.44 2,032.13 -0.7 1.5
BEL-20 (BELGIUM) 3,296.76 -21.13 -0.64 0.4 3,905.71 2,887.73 2.3 11.6
PX 50 (CZECH REPUBLIC) 959.40 -2.98 -0.31 1.3 1,058.40 901.30 -3.2 0.2
OMX COPENHAGEN (DENMARK) 815.78 -15.31 -1.84 20.8 923.55 611.68 18.1 21.9
OMX HELSINKI (FINLAND) 7,563.22 28.87 0.38 -2.5 9,374.42 7,010.83 -1.4 11.4
CAC 40 (FRANCE) 4,343.73 -13.32 -0.31 1.7 5,268.91 3,918.62 -1.6 9
DAX (GERMANY) 9,450.40 -33.15 -0.35 -3.6 12,374.73 8,571.95 -0.3 9.4
BUX (HUNGARY) 20,932.82 266.1 1.29 25.8 22,850.53 15,686.69 17 4
FTSE MIB (ITALY) 20,726.75 -32.74 -0.16 9 24,031.19 18,078.97 -0.8 11.1
AEX (NETHERLANDS) 412.11 -0.21 -0.05 -2.9 509.24 376.27 -2.1 8.4
ALL-SHARES (NORWAY) 611.63 0.94 0.15 -1.3 711.22 575.27 -9.6 7.3
WIG (POLAND) 49,257.71 25.97 0.05 -4.2 57,379.45 48,602.02 -10.2 4
PSI 20 (PORTUGAL) 4,896.39 -69.81 -1.41 2 6,324.88 4,606.25 -14.7 -2
RTS INDEX (RUSSIA) 784.11 8.38 1.08 -0.8 1,123.72 629.15 -30.2 -19
IBEX 35 (SPAIN) 9,393.90 -0.3 -0.003 -8.6 11,866.40 9,291.40 -13.2 6.8
SX ALL SHARE (SWEDEN) 466.99 0.53 0.11 -1.5 564.90 405.51 4.3 12.1
SWISS MARKET (SWITZERLAND) 8,323.48 -57.74 -0.69 -7.3 9,526.79 7,899.59 -5.8 8.6
BIST 100 (TURKEY) 74,257.65 942.66 1.29 -13.4 91,412.94 71,299.43 -0.9 3.8
FTSE 100 (U.K.) 5,909.24 -49.62 -0.83 -10 7,104.00 5,898.90 -10.8 1
FTSE 250 (U.K.) 16,442.49 -171.67 -1.03 2.2 18,263.46 14,426.74 6.9 11.9
AMERICAS
DJ AMERICAS (AMERICAS) 455.30 0.13 0.03 -10.2 524.44 454.62 -7.4 7
MERVAL (ARGENTINA) 9,659.57 248.2 2.64 12.6 12,548.99 7,581.72 -23 57.9
SAO PAULO BOVESPA (BRAZIL) 44,131.82 175.19 0.4 -11.7 58,051.61 43,956.63 -18.4 -9.3
S & P/TSX COMP (CANADA) 13,036.96 32.38 0.25 -10.9 15,450.87 13,004.58 -12.9 1.9
SANTIAGO IPSA (CHILE) 2,936.17 3.66 0.12 -7.2 3,359.04 2,903.95 -9.7 -11.5
IPC ALL-SHARE (MEXICO) 42,121.51 228 0.54 -2.4 45,773.31 40,225.08 -6.4 1
CARACAS GENERAL (VENEZUELA) 11,871.34 -265.56 -2.19 207.6 15,580.47 2,808.13 308.1 237.8
SOURCE: WSJ MARKETS
BACKGROUND BID ASKEURO 1.12 1.12
APANESE YEN 120.32 120.33
BRITISH POUND 1.52 1.52
SWISS FRANC 0.97 0.97
AUSTRALIAN DOLLAR 0.70 0.70
SWEDISH KRONA 8.39 8.39
CANADIAN DOLLAR 1.34 1.34CHINESE YUAN 6.36 6.36
NORWEGIAN KRONE 8.48 8.48
BOSNIAN MARK 1.71 1.76
DANISH KRONE 6.66 6.66
RUSSIA ROUBLE 65.49 65.50
TURKISH LIRA 3.03 3.03
CELAND KRONA 127.17 127.46
NDIAN RUPEE 65.58 65.59
POLISH ZLOTY 3.78 3.78
CZECH KORUNA 24.24 24.28
HUNGARIAN FORINT 279.26 279.66
UKRAINE HRYVNIA 21.05 21.25
SRAEL SHEKEL 3.92 3.93
ALBANIAN LEK 124.07 124.67
BULGARIAN LEV 1.75 1.75
SERBIAN DINAR 59.99 60.19
CYPRUS POUND 0.40 0.40
ESTONIAN KROON 11.70 11.71
GEORGIAN LARI 2.35 2.43
THAI BAHT 36.32 36.34
GIBRALTAR POUND 1.51 1.51
CROATIAN KUNA 6.82 6.82
KAZAKHSTAN TENGE 271.80 272.10
LITHUANIA LITAS 2.85 2.85LATVIAN LATS 0.51 0.51
MOLDOVAN LEU 19.97 20.20
MACEDONIA DENAR 54.78 55.15
MALTESE LIRA 3.41 3.42
ROMANIAN LEU 3.94 3.94
SLOVAK KORUNA 21.55 21.60
SERBIAN DINAR 106.61 107.03
ARMENIAN DRAM 470.00 475.00
UAE DIRHAM 3.67 3.67
ANGOLAN KWANZA 134.85 135.85
BURUNDI FRANC 1,566.00 1,586.00
BOTSWANA PULA 0.09 0.10
CONGO FRANC 915.00 935.00
CAPE VERDE ESCUDO 98.28 99.38
DIJIBOUTI FRANC 176.70 178.40
ALGERIAN DINAR 105.80 106.15
EGYPT POUND 7.83 7.83
ETHIOPIAN BIRR 20.72 21.12
GHANAIAN CEDI 3.68 3.74
GAMBIAN DALASI 38.60 39.60
ERITREA NAFKA 15.12 15.62
GUINEA FRANC 7,294.50 7,794.50
KENYA SHILLING 104.75 104.95
COMORO FRANC 437.15 438.15
LIBERIAN DOLLAR 87.00 88.00
LESOTHO LOTI 13.81 13.84
LIBYAN DINAR 1.37 1.37
MOROCCAN DIRHAM 9.69 9.71
MALAGASY ARIARY 3,200.00 3,250.00
MAURITANIAOUGUIYA 286.00 298.08
MALAWI KWACHA 549.20 561.50
MOZAMBIQUEMETICAL 42.00 42.84
NIGERIAN NAIRA 198.00 198.10
RWANDA FRANC 707.00 716.00
SC RUPEE 12.94 13.26
SUDANESE DINAR 200.02 201.02
SUDAN POUND 2,025.50 2,035.60
ST HELENA POUND 1.55 1.56
SIERRALEONLEON 4,145.00 4,245.00
SAO TOME DOBRA 21,205.00 22,519.00
SOMALI SHILLING 642.00 649.00
SWAZILAND LILAGENI 13.81 13.85
TUNISIAN DINAR 1.96 1.97
TANZANIA SHILLING 2,155.00 2,165.00
UGANDA SHILLING 3,688.00 3,698.00
CFA FRANC 585.26 594.26
CFA FRANC 585.26 602.86
MAURITIUS RUPEE 35.45 35.65
SOUTH AFRICA RAND 13.82 13.83
ZIMBABWE DOLLAR 378.00 381.00
NAME LAST CLOSE NET.CHNG PCT.CH
ANGLO AMERICAN/D 550.70 543.10 7.60 1.40%
ASSOC.BR.FOODS/D 3299.00 3205.00 94.00 2.93%
ADMIRAL GROUP/D 1495.00 1455.00 40.00 2.75%
ABDN.ASSET.MAN/D 296.30 293.00 3.30 1.13%
AGGREKO/D 906.50 876.00 30.50 3.48%
ANTOFAGASTA/D 498.60 491.70 6.90 1.40%
ARM HOLDINGS/D 935.00 919.00 16.00 1.74%
ASHMORE/D 247.20 243.40 3.80 1.56%
AVIVA PLC/D 450.23 428.40 21.80 5.09%
ASTRAZENECA/D 4201.00 4129.50 71.50 1.73%
BAE SYSTEMS/D 448.80 436.90 11.90 2.72%
BARCLAYS/D 245.70 239.00 6.70 2.80%
BRIT AM TOBACC/D 3629.00 3521.00 108.00 3.07%
BG GROUP/D 951.10 949.60 1.50 0.16%
BR LAND CO/D 831.50 821.50 10.00 1.22%
BHP BILLITON/D 996.00 979.00 17.00 1.74%
BUNZL/D 1769.00 1739.00 30.00 1.73%
BP/D 332.65 326.20 6.45 1.98%
BURBERRY GRP/D 1359.00 1316.00 43.00 3.27%
BT GROUP/D 421.25 413.25 8.00 1.94%
CARNIVAL/D 3426.00 3312.00 114.00 3.44%
CENTRICA/D 227.70 222.80 4.90 2.20%
COMPASS GROUP/D 1041.00 1015.00 26.00 2.56%
CAPITA PLC/D 1197.00 1190.00 7.00 0.59%
CRODA INTL/D 2744.00 2656.00 88.00 3.31%
CRH/D 1739.00 1700.00 39.00 2.29%
DIAGEO/D 1765.00 1718.00 47.00 2.74%
MAN GROUP/D 152.04 148.60 3.80 2.56%
EVRAZ PLC/D 73.50 72.00 1.50 2.08%
EXPERIAN/D 1059.00 1031.00 28.00 2.72%
FRESNILLO/D 595.50 596.50 -1.00 -0.17%G4S/D 230.60 227.40 3.10 1.36%
GKN/D 265.00 255.50 9.50 3.72%
GLENCORE/D 88.49 80.25 8.24 10.27%
GLAXOSMITHKLIN/D 1263.00 1237.50 25.50 2.06%
HAMMERSON/D 621.00 612.50 8.50 1.39%
HARGREAVES LS/D 1207.00 1179.00 28.00 2.37%
HSBC HOLDINGS/D 497.63 485.55 12.10 2.49%
ICAP PLC/D 455.50 447.00 8.50 1.90%
IAG/D 586.50 570.00 16.50 2.89%
INTERCONT HOTE/D 2259.00 2209.00 50.00 2.26%
IMI PLC/D 941.50 944.50 -3.00 -0.32%
IMPERIAL TOBAC/D 3396.00 3334.00 62.00 1.86%
INTERTEK GROUP/D 2416.00 2346.00 70.00 2.98%
ITV/D 246.70 243.20 3.50 1.44%
JOHNSON MATTHE/D 2470.00 2410.00 60.00 2.49%
KAZ MINERALS/D 80.15 72.70 7.45 10.25%
KINGFISHER/D 357.30 347.90 9.40 2.70%
LAND SECS GROU/D 1250.00 1234.00 16.00 1.30%
LEGAL & GENERA/D 239.20 230.40 8.80 3.82%
LLOYDS BNK GRP/D 75.39 73.36 2.03 2.77%
MEGGITT PLC/D 476.20 464.10 12.10 2.61%
MARKS & SP./D 500.50 488.40 12.10 2.48%
MORRISON SUPMK/D 167.50 156.10 11.40 7.30%
NATIONAL GRID/D 912.60 900.90 11.70 1.30%
NEXT/D 7561.50 7470.00 90.00 1.20%
OLD MUTUAL/D 188.10 182.10 6.00 3.29%
PETROFAC/D 769.00 762.50 6.50 0.85%
POLYMETAL INT/D 571.00 558.00 13.00 2.33%
PRUDENTIAL/D 1385.80 1330.50 55.50 4.17%
PEARSON/D 1112.00 1099.00 13.00 1.18%
RECKIT BNCSR G/D 5996.00 5820.00 176.00 3.02%
ROYAL BANK SCO/D 315.00 308.60 6.40 2.07%
RDS ‘A/D 1551.00 1537.00 14.00 0.91%
RELX/D 1122.00 1095.00 27.00 2.47%
ROYAL DTCH SHL/D 1555.00 1543.00 12.00 0.78%
REXAM/D 525.50 517.00 8.50 1.64%
RIO TINTO/D 2210.00 2149.50 60.50 2.81%
ROLLS ROYCE PL/D 669.34 651.00 18.50 2.84%
RANDGOLD RES./D 3836.00 3844.00 -8.00 -0.21%
RSA INSRANCE G/D 398.40 391.90 6.50 1.66%
SABMILLER/D 3723.50 3700.00 23.50 0.64%
SAINSBURY(J)/D 260.40 229.30 31.10 13.56%
SCHRODERS/D2783.00 2716.00 67.00 2.47%
SCHRODERS NV/D 2146.00 2116.00 30.00 1.42%
SAGE GROUP/D 500.00 491.40 8.60 1.75%
SHIRE/D 4513.73 4431.00 82.00 1.85%
STANDARD LIFE/D 386.50 375.50 11.00 2.93%
SMITHS GROUP/D 1000.00 994.50 5.50 0.55%
SMITH&NEPHEW/D 1148.00 1122.00 26.00 2.32%
SERCO GROUP/D 101.60 100.50 1.10 1.09%
SSE PLC/D 1495.64 1437.00 58.00 4.04%
STANDRD CHART /D 638.80 624.10 14.70 2.36%
SEVERN TRENT/D 2188.00 2136.00 52.00 2.43%
TATE & LYLE/D 587.00 577.50 9.50 1.65%
TULLOW OIL/D 172.10 166.60 5.50 3.30%
TESCO/D 182.30 171.30 11.00 6.42%
UNILEVER/D 2690.00 2603.00 87.00 3.34%
UNITED UTIL GR/D 918.63 905.50 13.50 1.49%
VEDANTA RES/D 436.40 440.30 -3.90 -0.89%
VODAFONE GROUP/D 207.94 204.35 3.60 1.76%
WEIR GROUP/D 1153.66 1144.00 10.00 0.87%
WOLSELEY/D 3765.00 3656.00 109.00 2.98%
WPP PLC/D 1370.00 1325.00 45.00 3.40%
WHITBREAD/D 4686.00 4577.00 109.00 2.38%
KENYA AIRWAYS/D 5.50 5.65 -0.15 -2.65%
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Thursday October 1, 2015 | BUSINESS DAILY
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28 BUSINESS DAILY | Thursday October 1, 2015
In the Drake song0 to 100, the ob-
vious theme is reaching a point of
success at a fast pace. A few lines
later, there’s a lyric, “I’m the rookie
and the vet.”
It’s a great line. Imagine possessing
the best qualities of the enthusiastic
up-and-comer with the wisdom and
experience of an industry lifer. The
key to success in life and business is to
combine the best qualities of both the
rookie and the veteran. Here’s how:
The rookie approaches with
the beginner’s mind. This is an at-
titude of openness, eagerness and lack
of preconceptions even when studying
a subject at an advanced level. Rook-
ies are always looking for information
and experiences that will help them
accelerate their professional develop-
ment. They are the antithesis of the
“know it all.”
The rookie is willing to pay
their dues. The enthusiasm that
comes with being the newcomer
usually partners with a “bring it on”
approach. Unfortunately, for many
experienced leaders, cynicism and
complacency too often replace that
unbridled enthusiasm. As a veteran,
revisit the “pay your dues” mental-
ity. You’ll be amazed at how much
you can accomplish with an attitude
change.
A veteran uses accumulated
knowledge to make strategic deci-
sions. The great advantage of experi-
ence is having a history to draw upon.
Effectively using collective knowledge
from the past and relating it to cur-
rent dilemmas is a veteran’s play not
available to the rookie.
A veteran keeps cool under
pressure. Since rookies are en-
countering most experiences for the
first time, it’s easy to let the imagina-
tion run to the worst-case scenario,
which is hardly productive. The vet-
eran shouldn’t be rattled by a fork in
the road. Rather, he or she can use
experience to focus on what’s really
important – making the right deci-
sion and following up with correc-
tive action.
A veteran knows whom to ask
for advice.For the rookie, knowing
where to go for answers can be half
the battle – but deciding whom to
trust is another matter. On the other
hand, an experienced executive knows
where to go and more importantly,
whose advice to weigh more heavily
than others.
Aim to strike a balance between the
zeal of a newcomer and the savviness
of a seasoned player. If you can har-
ness the best traits of both the rookie
and the vet, you’ll reach MVP (most
valuable professional) status.
- ENTREPRENEUR
Keep the zeal of a rookie no matter how high you climb
7/17/2019 Daily Peoples
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Thursday October 1, 2015 | BUSINESS DAILY
Life: MANAGEMEN
Reasons many salespeople a≥enot g≥owing in the p≥ofession
Most salespeople fall on the
wayside and many grow
into inefficiency. This is
the tragedy of the sales profession.
A worrying number of experienced
salespeople aren’t really growing in
experience. Their 10 years experience
is in fact one year experience ten times.
It is a matter of duration not merit.
This tragedy is aggravated by the
fact that the last decade has funda-
mentally shifted the sales landscape.
Technology is rapidly shifting what
was for a long time a one way street
into a dual carriageway. Buyers have
greater access to information and
options beyond the average sales-person.
What is the source of this tragedy?
First, is it is foundation – the environ-
ment that shapes our formative years.
Education, society and upbringing
prepare us for a desk job. As such, the
baseline for growth in employment
is from zero because a footing exists,
plus the organisation structure sup-
ports it.
On the other hand, how many
teachers, role models or parents tell
their mentees to study hard and be
salespeople? Close to nil. Many people,
therefore, are not born salespeople but
have it thrust upon them. Small won-
der then that only a handful achieve
greatness.
MARKET Worrying number of experienced salespeople have become inneficient
Life: MARKETIN
SALES PITCH
JOHN KAGECHE
Selling, on the other hand, starts
from below zero and reaching zero is
a feat in itself. To successfully reach
the zero base line, sellers must first
unlearn what they learned for close to
two decades and in an environment
that treats them as outcasts.
Lacking the requisite support
structures (for example, a competent
sales manager) makes it a losing bat-
tle for many.
Secondly, the nature of selling
makes things hard. Unlike the desk
job where work comes to you, selling
requires that we
are always looking
for work. To thrive,
the search must re-
main never ending.
It’s the very lifeline
of the role.
Salespeople
have to learn to re-
main afloat in the
floods of internalpressure for num-
bers and external
rejection by buy-
ers. Rejection is
painful and it torpedoes many sales
boats. They rapidly sink and the cap-
tain jumps ship.
Sometimes the captain stays on
board because he is seasoned in
steering clear off the waters. He thus
remains “experienced” in his comfort
zone. Naturally, growth is stunted.
Another reason why many sales-
people grow into inefficiency is their
attitude. Having grown a year past base
line, the sales person wallows in the
miasma of the progressive pats on the
back he has been receiving. He looks
around at the novices struggling to get
to zero and feels that he has arrived. He
stops learning, developing and grow-
ing. He gets sloppy and inadvertently
breaks his prospecting pattern; he
wings his presentations and gets too
casual with buyers.
For a moment it works; the momen-
tum he has built in the past year carries
him forward. Soon though, he realises
he has been decelerating. What was
once a steady gush is reduced to spurts.
This becomes his new normal.
It is especially difficult to get out
of this predicament if the
salesperson lacks a selfish
drive to keep him going; not
merely achieving targets for
the sake of it (which inciden-
tally is unsustainable as a
motivation tool) but a burn-
ing desire for, say, recogni-
tion, helping others, getting
a degree or keeping up with
the Joneses.Interestingly, even those
with desk jobs in time find
it necessary to acquire sales
skills for their side hustles.
Globally, even with rapidly changing
technology replacing many jobs, the
one profession that is still growing
is sales. Paradoxically, the salesper-
son isn’t.
Arresting this anomaly is a joint
effort that pools together the sales-
person’s attitude and enabling sup-
port structures.
Kageche is lead facilitator, Lend
Me Your Ears, a sales training and
development firm. Email:lendmeyo
Even with
≥apidly changing
technology
≥eplacing many
jobs, the one
p≥ofession that
is still g≥owing is
sales
Lack of requisite support structures, rejection by buyers and lack of a proper foundation affect the growth of many sales people. FILE
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30 BUSINESS DAILY | Thursday October 1, 2015
TIMES CROSSWORD 24,962
How to playFill the grid so that every row, every column and every 3x3 bcontains 1-9.You solve the puzzle with reasoning and logic and notmathematical ability
SUDOKU PUZZLE 090
TIMES 24,961
SUDOKU 089
Across
1 Means to help engineers joining
training programme (8)
5 French city, mostly chilly when spring
begins (6)9 Computing trouble? Start off showing
some common sense (8)
10 Dog collar returned and put away
(4,2)
12 Rhubarb ready for picking after very
little time (5)
13 He plays rugby game, then he soaks in
water and departs (5,4)
14 In the event, tip-top notion will need
further development (5-2-5)
18 Oscar’s off to the sea, taking a spin in
a motor to Land’s End (7,5)
21 Protective garments formerly,
covering legs? Quite the opposite (9)
23 Bit of a smooth operator? I wish! (5)
24 High-flier beginning to inquire about
careers? He’s put off (6)
25 Recalled artist at Christmas party
being a famous painter (8)26 Old coin with head of the queen?
Right (6)
27 Peacekeepers ultimately want
number set free (8)
Down
1 Agreed southern town is off-limits
2 Left wing agent given hearing (6)
3 Cuckoo at top of mast? (2,3,4)
4 Force tax to come down on delivetruck? It’s gone up (8,4)
6 Lecture means nothing to class (5
7 Refer to new school that’s set up a
very attractive (8)
8 Try a dip I concocted in haste (8)
11 Coin the wife banked, back from
Cornwall? (5-7)
15 Type of fish — brill — served aro
noon, maybe (9)
16 Given slap, unpleasant person ful
discomfort (8)
17 Conserve ocean, having reduced
pollution (8)
19 Who might give order to preach?
20 Passion is stronger in EastEnders
broadcast (6)
22 Female physician’s stroke of luck
1 2 3 4 5 5 76
9 10
11
12 13
14 15
16 17
18
19
21 22 23
24 25
26 27
S U S T A I N E D H O C U S
U U P O U U A H
P A R A P E T M U T A B L E
E F E I F I L
R Y E A S C E R T A I N E D
I S E I L E R
N U T T E R V E N D E T T A
I M V S E K
E A U D E N I L T R I F L E
T P N R S M L
Z A R A T H U S T R A O A R
S I L A S R A
C O G N A T E F I T T I N G
H H L N F O D E
E A T U P T R A I N B A N D
W here do you see yourself in five years? Will you be a workaholic,
living the simple life or will you
be a successful entrepreneur with a mil-
lion-dollar business?
There is no substitute for classic goal set-
ting. Here are a few tried-and-true tactics
to propel your business to success.
Review your goals every day
Goal setting is like getting on the scale –
you’ll see greater success if you do it every
morning. As entrepreneurs, dreaming
big is standard practice. The distinguish-
ing factor between the big dreamers and
the big doers is that the doers take action.
“Sometimes our biggest life goals seem
so overwhelming. We rarely see them as
a series of small, achievable tasks,” writesJack Canfield in his book, The Success Prin-
ciples: How to Get from Where You Are to
Where You Want to Be.“But in reality, break-
ing down a large goal into smaller tasks
– and accomplishing them one at a time – is
exactly how any big goal gets achieved.”
Behaviour science expert and writer
James Clear calls these smaller goals
“systems.” “If you’re a coach,” he explains,
“your goal is to win a championship. Your
system is what your team does at practice
each day. If you’re an entrepreneur, your
goal is to build a million-dollar business.
Your system is your sales and marketing
process.”
Evaluate your goals regularly
Goal setting is a process of discovery as
much as it is a way to get the job done.
As you monitor your goals, ask yourself:
Does this goal matter?
“Being a leader means finding the
path,” explains author Kevin Hall in his
book, Aspire: Discovering Your Purpose
through the Power of Words. “But before
you can help someone else find their path,
you must know yours.”
By evaluating your goals regularly, you
can make sure to focus on what’s important
to you. For example, if your goal is to run
10 miles a day but you’re starting to have
knee problems, then you may ask yourself
if your goal is really to run (as an end in it-
self) or to enjoy a healthier lifestyle. This
kind of flexibility will get you what you re-
ally want – and may save you from having
surgery down the road.
Zig zag your way to the top
While the idea of racing toward your
goals at breakneck speed is seductive,
there are unexpected obstacles that inevi-
tably complicate any business.
“The road to success is never a straight
line,” writes Rich Christiansen in The
Zig Zag Principle. “The diversions and
detours I had often found so frustrat-
ing had actually created more stable and
solid businesses. On the other hand – and
without exception– each time I had raced
directly at a target with high velocity, I
had failed.”
Zigzagging requires you to be nimble
and flexible and to take advantage of multi-
ple opportunities. When a challenge comes
along, consider your goal and whether it
would be best to forge directly ahead or to
pivot toward a different, short-term goal. It
may not be the straightest path, but being
adaptable is the clearest path to success.
Some of the most successful entrepre-
neurs have achieved their success in part
by practicing disciplined goal setting.
- ENTREPRENEUR
T≥ied and t≥ue tactics to helpyou set you≥ five-yea≥ goals
Life: MARKETING
By breaking down your long-term goals into smaller daily tasks, evaluating your plans regu-
larly and being adaptable, you will enjoy the benefits of your efforts. FILE
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Thursday October 1, 2015 | BUSINESS DAILY
Injury-plagued NBA playerundergoes surgery againChicago Bulls guard Derrick Rose, the inju-
ry-nagged former NBA Most Valuable Play-
er, suffered a left orbital fracture in prac-
tice and was done for surgery yesterday.
Rose was struck in the face by an elbow
during a pre-season workout and taken
to a nearby hospital where doctors diag-
nosed the orbital break.
A timetable for Rose’s return to the Bulls
will be determined after the operation.
Rose has been hindered by a series of knee
injuries since winning the 2011 NBA Most
Valuable Player Award. Since the start of
the 2011-12 season, Rose has played in
only 100 regular season games. Rose, 26,
tore a left knee ligament in the 2012 NBA
playoffs and missed the entire 2012-13
season.
He suffered a right knee inj ury in Novem-
ber of 2013 that caused him to miss the re-
mainder of the 2013-14 campaign.
Last season, Rose missed 31 games, some
of them due to an operation on his right
knee in February.
Rose helped the US squad win the World
Championships in 2010 and 2014. New
Bulls coach Fred Hoiberg already lost Mike
Dunleavy Jnr underwent back surgery last
week and is expected to miss eight to 10
weeks.
Tom Brady free to playafter court adjourns caseNew England Patriots quarterback Tom Brady
is all but certain to remain free to play for the
rest of the season after a court ruled on Tues-
day that the NFL’s appeal in the “Deflategate”
case would not be heard before February.
The court granted a request by the league and
players union for an expedited hearing, with
the league ordered to file a brief by October
26, with Brady’s attorneys to reply by Decem-
ber 7 and the league having until December
21 to respond.
The appeal would be heard the week of Febru-
ary 1 with the Super Bowl set for February 7 at
the new home stadium of the San Francisco
49ers. The timing virtually ensures Brady
would not face a ban this season even if the
ruling in the controversy about underinflated
footballs that has haunted the Patriots since
last year’s American Conference final.
NFL commissioner Roger Goodell looked into
the controversy of balls found to be below NFL
air pressure minimums and banned Brady for
the first four games of this season.
Brady appealed the ban to Goodell and he up-
held his punishment in July. Brady then took
the matter to US District Court and earlier
this month had the suspension thrown out
by judge Richard Berman — a verdict the
league has now pushed to the US Court of
Appeals.
SPORTS BRIEFINGSPORTS BRIEFING
New England Patriots quarterback T
Brady. REUTERS
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32 BUSINESS DAILY | Thursday October 1, 2015
M
Army seizes coup barracksBurkina Faso’s interim government says
the army has retaken the barracks of the
presidential guard that staged a coup ear-
lier this month. Officials announced the
takeover in a televised statement. It is not
clear if there were any casualties. Earlier,
a BBC correspondent in the capital Oua-
gadougou said shots and explosions were
heard and smoke seen rising from the bar-
racks. The army accuses the presidential
guard of not laying down arms after the
coup. Coup leader Gen Gilbert Diendere,
whose whereabouts are still unknown,
had called on the elite force to surrender
“to avoid a bloodbath”.
He told the AFP news agency that he
feared there had been “many deaths” as
the barracks were seized.
The army had surrounded the barracks
all day and army spokesman Capt Guy
Herve Ye said artillery was fired at the
complex before soldiers moved in and
took control.
Islamist charged at ICCA suspected Islamist militant accused of
destroying cultural sites in Timbuktu is due
to appear before the International Criminal
Court (ICC), in the first case of its kind.
Ahmad al Faqi al-Mahdi is suspected of
war crimes over the destruction of nine
mausoleums and a mosque in the ancient
Malian city in 2012.
He was handed over by Niger after the ICC
issued a warrant for his arrest. Islamists
occupied the city until they were ousted
by French forces in 2013.
In a statement, the ICC said the suspect
would be informed of the charges
against him during yesterday’s initial
hearing.
CAR capital in lockdownThe capital of the Central African
Republic is under a night-time curfew
after days of intense fighting between
Christian and Muslim groups.
Fierce clashes between the two groups
erupted after the killing of a Muslim taxi
driver in Bangui on Saturday.
At least 36 people have died in the
violence, and the UN says it has forced
nearly 30,000 people to flee.
“We fear that the violence we’re seeing
in Bangui is a return to the dark days of
late 2013 and 2014, when thousands
were killed and tens of thousands had
to flee their homes,” said Leo Hobbs, a
spokesman for the UN’s refugee agency.
Bombers get death sentenceA court in the western Indian city of Mum-
bai has sentenced five people to death
over the 2006 serial bombings of com-
muter trains.
Seven of the 12 men convicted for the
blasts have been given life sentences.
Seven blasts ripped through trains in the
evening rush hour on 11 July 2006, killing
189 people and injuring more than 800.
The attack was blamed on Islamic
militants backed by Pakistan, an
allegation the country has denied.
A defence lawyer told reporters
outside the court that the accused
were “innocent” men who had been
“framed” and said they would challenge
yesterday’s order in the high court.
US state executes womanA woman in the US state of Georgia has
been executed despite a number of last-
ditch appeals, including one by the Pope,
to try to block her execution.
Kelly Gissendaner (pictured), 47, was the
first woman put to death in the southern
US state in 70 years. Lawyers filed at least
three appeals with the US Supreme Court
to try to delay the sentence hours before
she died.Gissendaner planned but did not
carry out her husband’s murder in 1997.
Her former lover, Gregory Owen, who
killed Douglas
Gissendaner,
was given life
in prison as
part of a plea
bargain. Pope
Francis, who
was recently on
a US tour, urged
the review board to reconsider. But on
Tuesday afternoon, the board announced it
was not granting clemency.
Russia starts Syria air strikesRussia appears to have begun carrying out
air strikes in Syria against opponents of
President Bashar al-Assad, a US defence
official says. The official said the strikes
reportedly came in the area of the western
city of Homs. Washington was informed
in advance that they were about to take
place. The development came amid re-
ports that President Assad had formally
requested Russian military support. Re-
ports from Russia say the upper house of
the Russian parliament granted President
Vladimir Putin approval to deploy the Rus-
sian air force in Syria.
Migrant killed on rail tracksA migrant has been killed on the Eurotun-
nel tracks trying to make it to the UK.
The man is the 13th migrant to die trying
to get to Britain since late June, and the
fourth in 10 days. The man’s nationality is
not confirmed, although the BBC has been
told by people in the migrant camps in Cal-
ais he was Eritrean. A spokesman for Euro-
tunnel said a man was found unconscious
beside the tracks on the French side.
UK scientists have successfully germinated
seeds from the critically endangered Japanese
Birch, a species that has just 21 known trees
remaining.
Rare tree seeds germinatedNew Zealand has revealed plans to turn an
area of the South Pacific about the size of
France into a marine reserve. The Kermadec
Ocean Sanctuary lies north of the mainland
N Zealand plans marine reserveScientists think they can now tie dark streaks
seen on the surface of Mars to periodic flows of
liquid water. Data from a Nasa satellite shows
the features, which appear on slopes, to be as-
Data reveals water on Mars
EnvironmentNEWS