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Safaricom Gets Green Light:

The Safaricom IPO, has the green light to proceed. This is after the Court of Appeal quashed a suit seeking to block the listing on the 20th of December 2007. The government is to sell 25% of its 60% shareholding to the public. The I.P.O is expected to commence next year. The suit, brought by a section of the Orange Democratic Movement party members, in part demanded the Privatisation Act approved by President Kibaki two years ago becomes operational.

SAFARICOM SUED:

Safaricom is being sued by one Mr Franklin Mithika Linturi, an aspiring MP. Mr Linturi argues that Safaricom wrongfully/unlawfully charged him for a service they didn’t provide. The case describes Safaricom’s action as negligent, fraudulent and amounted to a breach of contract.

**I think I’ll also sue for the many messages that fail to be delivered and yet I’m charged for – any interested lawyer***

GOOGLE MOBILE: (source hinkmonds)

Google’s on/off entry into the cell phone market may well be back on again if the latest rumors out of Boston are to be believed. Reportedly, a number of venture capitalists have seen the new device under NDA (non disclosure agreement). Here are the rumors spreading:

• The Google Phone OS is based on a mobile variant of Linux, and is able to run Java virtual machines.
• All applications that run on the Google Phone are java apps. The OS has ability to run multimedia files, including video clips.
• The user interface is similar to a UI typical of mobile phones, and the image (with red background) floating around isn’t representative of the Google Phone UI. The entire UI is said to be done in Java and is very responsive. The UI, of course has a “search box.”
• There is a special browser which has pan-and-browse features that are common to modern browsers such as browsers for iPhone and Symbian phones. The entire browser is apparently written in Java. But then others have told us that the browser is based on the WebKit core, the same engine in Safari and in iPhone, and Google has been making optimizations to speed it up
• Initially there was one prototype, but over past few months Google has the mobile OS running on 3-to-5 devices, most of them likely made by HTC, a mobile phone maker, and all have Qwerty apps. The model that folks have seen is very similar to the T-Mobile Dash. Around 3GSM, there were rumors that Google, Orange and HTC were working together on mobile devices.

BUSINESS RESOURCE OF THE WEEK:

Kenya Investment Authority

Establishment

The Kenya Investment Authority was established by the Government of Kenya through the Investment Act 2004 with the mandate of promoting and facilitating private investments in Kenya for both local and foreign investors.
The Kenya Investment Authority is managed by a Board of Directors drawn from the public and private sectors. Its day-to-day management is headed by a Managing Director. The organization has four departments namely:
Investor Services
Investment Promotion
Research Policy and Planning
Corporate Services
Our Vision
To be a world class Investment Promotion Agency (IPA) in marketing Kenya as the first choice investment destination.
Our Mission
To be a competent and proactive IPA that provides exceptional facilitatory services conducive to attracting and retaining investments in Kenya.
Our Core Values:

Investor first:
We put investors first and strive to continuously meet and exceed their demands.
Staff are our key asset:
We endeavor to have highly trained, committed and motivated employees.
Professionalism and integrity:
We subscribe to the highest level of professionalism and integrity in a transparent and accountable manner.
Teamwork and participatory management:
We cherish teamwork with openness and trust.
Linkages and Networking:
We seek to involve all stakeholders towards fulfillment of our mission.

(info source: Kenya Investment Authority )

REGISTERED STOCK BROKERS:

Francis Drummond & Co. Limited Ngenye Kariuki & Co. Ltd. Dyer & Blair Investment Bank Ltd Suntra Investment Bank Ltd Francis Thuo & Partners Ltd(under statutory management) Reliable Securities Ltd. Nyaga Stockbrokers Ltd. CFC Financial Services – Stock broking Division Kestrel Capital (EA) Limited Discount Securities Ltd. Sterling Securities Ltd African Alliance Kenya Securities. Ashbhu Securities Ltd Crossfield Securities Ltd Apexafrica Investment Bank Ltd Faida Securities Ltd. Solid Investment Securities Ltd. Standard Investment Bank Ltd Bob Mathews Stockbrokers Ltd.One of the ways to maximize your allocation in IPOs is to open multiple accounts with your CDA. To open a CDS account you need to provide the following documents:

1. 2 colured passport photos
2. 1 National ID/Passport photocopy.

And that’s all. The CDS account doesn’t attract any fees whatsoever and is free to open.

The trick is to open one account under your name and then open multiple joint accounts with friends and family. This ensures that if the allocation is as low as 200, if you have 10 accounts your allocation jumps up to 2000.

The downside of this method is that the refund process tends to become a headache, also consolidation when selling tends to be a bit messy. But if you don’t mind the hassle, then the end justifies the means

2.COMPANY ACCOUNT

The other trick is to start a company and open a CDS account for it. The documents required are:

1. 2 Colured passports for each director

2. Photocopies of National ID cards/Passports of directors

3. Certificate of incorporation (copy)

The beauty of investing through a company is that for one Institutional Investors have their own category when it comes to allocations, and the minimum investment amount is significantly higher than that of Individual Investors.

The other advantage of a company is the fact that it enables like minded individuals pool resources in a legally set out manner.

To maximize your allocation you can register 2 or 3 companies depending on your intended investment amount.

3. Method 2 & 3

The obvious disadvantage of this method is the refund and sale processes which tend to become a burden.

Once again it entirely depends on your needs.

4. Go against the Market

As with all previous IPOs one thing is always certain – the market goes to a slump – this is because in essence the Exchange is held sway by the rule of demand and supply.

By this, the demand for the listed counters shifts to the IPO leading to price value loss in the market. Also during such hyped IPOs investors tend to raise cash by selling off the shares in their portfolio which also leads to price losses.

The advantage of going against the market is whilst the majority of people are waiting for their refunds, allocations and subsequent listing (which takes around a month), the market bounces back and you make a killing – usually two times over.

The other advantage of not tying up your cash for a month only to get a paltry allocation, is by the time it lists, you’ll have made money and the pundits will have sufficiently analyzed the counter and you can always get the share after it lists – with no minimum limit

FINANCIALS:

Forex :INDICATIVE RATES AS AT 02.JULY.2007

source: Central Bank Of Kenya

Stocks :

STOCKS CLOSING PRICES 02.JULY.2007

source:Nairobi Stock Exchange

Uchumi’s Debenture
It has been announced that Uchumi shareholders might lose out to a

strategic partner, since the debenture might not raise enough cash. The

debenture was a way to raise cash so as to avoid shopping for a

strategic partner.

Kenya Re IPO

The awaited IPO has finally been given a go ahead, despite the

managerial challenges – nearly half of the board was sacked due to

fraud investigations- the govt steered on and got clearance by the

Capital Markets Authority.

With an AM Best financial rating of B+,Kenya Re will be an interesting

IPO. Though obviously overshadowed by the looming Safaricom IPO.

Another point of interest as with the previous IPO’s will be the

refunds. Most Kenyans have been disheartened by the time it takes for

the refund cheques to be issued.

Links: Kenya RE
Capital Markets Authority

Taxes:

Kenya Revenue Authority’s Director General Michael Waweru announced an

increase in the taxes collected, not only did they increase collection,

they surpassed the target they had set.

Links: Kenya Revenue Authority.

Youth Fund Disbursment:

The minister for Youth Affairs, Mohamed Kuti is reported to have chosen 21 financial institutions to disburse the highly coveted Youth Fund. Already sham organizations had sprung up taking money from unsuspecting youth as to help them secure the loans.

FINANCIAL INTERMEDIARIES IN PARTNERSHIP WITH THE FUND AS AT 31st MAY, 2007

Financial Intermediary	H/Quarters Contacts	Areas of Operations
Family Finance Building Society	020-318173 020-318174 (fax) info@familyfinance.co.ke	Refer to note 1 below
Kenya Industrial Estate	020-651348/53 020-651355 (fax) admin@kie.co.ke	All districts
Kenya Women Finance Trust	020-2712829 kwft@kwft.org	Refer to note 2 below
K-REP Dev. Agency	020-4343493 020-2718301 (fax) kda@k-rep.co.ke	Refer to note 3 below
Business Initiatives and Management Assistance Services	068-31645 068-31573 (fax) info@bimaskenya.org	Embu, Kitui, Machakos, Mbeere, Meru Central, Meru North, Meru South, Mwingi, Tharaka.
Nyamira Tea Farmers SACCO	058-6144205 058-6144205	Nyamira and Kisii Central districts
Taifa SACCO	061-2030275/713 061-2030911	Nyeri, Lakipia,
Nomads Welfare Development Group	0720-637965	Garissa district
Masaku Traders SACCO	044-20571 044-20571	Machakos and Makueni districts
Marsabit Teachers SACCO	069-2007	Marsabit district
Kenya Entrepreneurship Empowerment Foundation	061-2034611 020-2046423	Nyeri, Maragua, Laikipia, Eldoret, Uasin Gishu, Mbeere,Thika, Nyandarua
Small and Micro Enterprprise Programme	020-3870162 020-3870191 (fax) smep@africaonline.co.ke	Taita Taveta, Kilifi, and Malindi
K-REP Bank	020-3871511 020-3873178 (fax) registry@k-repbank.com	Refer to note 4
Adok Timo	057-2025570 057-20210080 (fax) adoktimo@yahoo.com	Kisumu, Nyando, Siaya, Bondo, Rachuonyo, Suba
Taita Taveta Teachers Sacco	043-42206/42324 P.O Box 1186, Wundanyi	Taita Taveta District
Elgon Teachers Sacco	055-21449 P.O Box 27, Kapsokwony	Mt. Elgon district
Lokichoggio Multi-purpose Coop.	0733-643604 P.O Box 18, Lokichoggio	Turkana District
Lamu Teachers Sacco	042-633094 P.O Box 110-80100	Lamu District
Marafiki Sacco	0722-728415 P.O Box 5441, Nairobi	Nairobi
Baringo Farmers Sacco	051-752483 P.O Box 660, Eldama ravine	Koibatek district
Equity Bank	020-2736630 P.O Box 75104-00200 Nairobi. info@ebsafrica.co.ke	Refer to Note 5

Notes:

1. Nairobi, Nakuru, Kirinyaga, Embu, Machakos, Mombasa, Kisumu, Kisii, Bungoma, Uasin Gishu, Trans Nzoia, Kiambu, Thika, Muranga, Maragua, Nyeri.

1. Nairobi, Kajiado, Nyandarua, Thika, Kiambu, Narok, Machakos, Makueni, Kitui, Mwingi, Mombasa, Kwale, Kilifi, Malindi, Taita Taveta, Lamu, Nakuru, Koibatek, Kericho, Buret, Eldoret, Nandi South, Bomet, Baringo, kisumu, Bondo, Siaya, Vihiga, Migori, Nyamira, Kisii, Guracha, Transmara, Homa Bay, Kakamega, Butere/mumias, Bungoma, Transzoia, West Pokot, Busia, Muranga, Nyeri, Kirinyaga, Embu, Meru South, Meru Central, Meru North, Laikipia, Isiolo.

1. Nairobi, Bondo, Siaya, Kisii, Nyamira, Gucha, Muranga, Maragua, Meru, Trans Nzoia, Lugari, Taita Taveta, Buret, Kiambu, Thika, Mombasa, Kakamega, Butere/Mumias, Busia, Bungoma.

1. Nairobi, Bungoma, Eldoret, Kisumu, Kericho, Kisii, Isiolo, Nanyuki, Nyahururu, Nakuru, Thika, Kajiado, Naivasha, Meru, Nyeri, Kibwezi, Embu, Machakos, Mtwapa, Kongowea, Mombasa

1. Nairobi, Thika, Isiolo, Chuka, Eldoret, Embu, Kirinyaga, Muranga, Nyeri, Kericho, Kisumu, Kitale, Machakos, Maua, Meru, Nakuru, Mombasa, Laikipia, Narok, and Nyandarua.

For more info, go here

Source: Youth Ministry

Access Kenya Acquires Internet Service Provider:

The listed Access Kenya announced the acquisition of ISP Todays Online. This move is inline with their expansion strategy. The buy is still awaiting approval.

BLACKBERRY LANDS IN KENYA:

Celtel today (06 July 07) officially launched their much anticipated Blackberry service from Research In Motion(RIM). The same service is in partnership with Emitac Mobile Solutions LLC(EMS) and RIM.

At launch, Celtel Kenya will offer the BlackBerry® 8700g, BlackBerry® Pearl™ 8100 and BlackBerry® 8800 smartphones to its customers.

Read more here