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Satchu's Rich Wrap-Up
 
 
Monday 17th of October 2016
 
Morning
Africa

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How relevant is BRICS today? @AJEnglish #InsideStory Video
Africa


For several years now, the most talked-about trend in the global
economy has been the rise of developing markets.

Some economists expected Brazil, Russia, India, China and South Africa
to lead the world to new economic heights.

But as the BRICS bloc met for its 8th summit in India's state of Goa,
those hopes appeared to be fading.

Most of the countries involved are struggling to deal with slowing
economies. They must find ways to forge closer business and trade
ties. But there are other concerns to be addressed too, including
national security and the threat posed by terrorism.

Presenter: Laura Kyle

Guests:

Sreeram Chaulia, dean of the Jindal School of International Affairs.

Aly-Khan Satchu, emerging markets economist

Anastasia Nesvetai-lova, director of City Political Economy Research
Centre at City University London.

read more




12-SEP-2016 Therefore, my second trade of the year is to buy put options on 10- year bonds @TheStarKenya
Africa


Therefore, my second trade of the year (my first was to be long, the
Yen from January) is to buy put options on 10- year bonds because this
is going to pop, and when it pops, the wizardry won’t work anymore,
and at that moment there is going to be one heck of a move.

read more





Policymakers would not "take instruction" from politicians on how to do their jobs. @bankofengland Telegraph
Africa


Mr Carney also defended the Bank’s independence, insisting that
policymakers would not “take instruction” from politicians on how to
do their jobs.

“The objectives are what are set by the politicians, the policies are
done by technocrats,” he said. “We are not going to take instruction
on our policies from the political side.”

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UK gilt yields soar on 'hard Brexit' and inflation fears @FT
Africa


UK government bonds sold off sharply on Friday after Mark Carney
indicated the Bank of England was willing to tolerate a higher level
of inflation, compounding market unease over the prospects of a “hard
Brexit”.

The yield on the 10-year UK gilt climbed to 1.10 per cent, a rise of 7
basis points after touching its highest levels since Britain’s June
vote to leave the EU. Bond prices move in the opposite direction of
their yields.

Gilts have become ensnared in the backdraught of the pound’s plunge.
The weaker currency has raised import prices, and a key market measure
of UK inflation expectations has climbed to its highest level since
early 2014.

Speaking at a BoE event in Nottingham, the central bank governor said
monetary policymakers were willing to tolerate “some” overshoot in its
inflation target. He was “not indifferent” to the exchange rate when
looking at monetary policy, he added.

Current UK inflation stands at 0.6 per cent but is expected to climb
to 2.4 per cent by 2018, pushed up by the weak pound, according to the
BoE’s latest forecasts.

“Our judgment in the summer was that we could have seen another
400,000 to 500,000 people unemployed over the course of the next few
years … so we are willing to tolerate a bit of overshoot in inflation
over the course of the next few years in order to avoid that
situation, to cushion the blow,” Mr Carney said. Only in the face of a
persistent rise in inflation would the central bank raise interest
rates.

The governor added: “Our job is not to target the exchange rate, our
job is to target inflation … but that doesn’t mean we’re indifferent
to the level of sterling. It does matter, ultimately, [for] inflation
and over the course of two to three years out, so it matters to the
conduct of monetary policy.”

Alberto Gallo, partner at Algebris Investments, said Mr Carney’s
comments were the latest blow for a gilts market already rattled by
the prospect of a hard Brexit and a reported comment from an S&P
analyst that sterling may lose its reserve status and spur a reduction
in holdings of UK assets by central banks.

“A central bank should look at a weaker currency as doing the job of
easing policy,” said Mr Gallo. He added that the 10-year yield could
well rise back towards a level of 1.5 per cent, above its pre-Brexit
vote level as investors sold their holdings.

Analysts at Bank of America Merrill Lynch said there was a looming
risk that overseas investors could go on “strike” following a loss of
confidence in the government’s perceived strategy to pursue a clean
break with the EU.

This year’s once-hefty gains for long-dated gilts have been erased in
dollar terms thanks to the weaker pound. Overseas holders accounted
for 27 per cent of the UK bond market at the start of the year and
they are likely to demand a premium to hold UK assets with a devalued
currency.

“The gilt market’s reliance on foreign funding is a big part of the
UK’s broader reliance on ‘the kindness of strangers’,” said Sebastien
Cross at Bank of America Merrill Lynch.

“Consequently, a loss of confidence in gilts from overseas buyers
would unlikely remain isolated to the government debt market,” he
added.

In the aftermath of the Brexit vote, the gilts market had reaped a
double-digit gain for the year, with the prospect of the BoE resuming
quantitative easing attracting significant buying from investors.
Since a low of 0.51 per cent for the 10-year gilt in August, selling
pressure has steadily increased.

With a quarter of UK government debt held by foreign investors, a
weaker pound has aroused concern of an allocation away from gilts, and
rising gilts yields have also outpaced the recent climbs recorded for
US, German and Japanese 10-year bond benchmarks.

Market expectations of inflation have jumped and the UK’s five-year
“break-even” rate, a gauge of price expectations derived from the
yield difference between conventional and index-linked gilts, has
climbed above 3 per cent to the highest level since early 2014.

read more




10-OCT-2016 :: The falcon cannot hear the Falconer - @TheStarKenya
Africa


Turning and turning in the widening gyre
the falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;

read more




12-SEP-2016 What is clear is that we are at the fag-end of this party. @TheStarKenya
Africa


A lot of risk calculations are based on Value at Risk (VAR).
Essentially, you overlay a volatility measure over the portfolio, and
you calculate how much money is on the line. Central banks have
suppressed volatility therefore in real terms; investors are now
holding bigger positions at these current artificially suppressed
levels. If volatility spikes, positions are going to be reduced en
masse. Or to put it another way and to borrow the lyrics from the
Eagles Hotel California:

Mirrors on the ceiling,
The pink champagne on ice
And she said “We are all just prisoners here, of our own device”
Last thing I remember, I was
Running for the door
I had to find the passage back
To the place I was before
“Relax,” said the night man,
“We are programmed to receive.
You can check-out any time you like,
But you can never leave! “

Home Thoughts

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The Emperor: Downfall of an Autocrat, published in 1978, is Ryszard Kapuscinski's analysis of the decline and fall of Haile Selassie's regime in Ethiopia.
Africa


"First of all, one can't unmask oneself too early, showing the
rapacity for power, because that galvanizes competitors, making them
rise to combat. They will strike and destroy the one who had moved to
the fore. No one should walk in step for years, making sure not to
spring ahead, waiting attentively for the right moment. In 1930 this
game brought His Majesty the crown, which he kept for forty-four
years."  The Emperor: Downfall of an Autocrat Quotes Ryszard
Kapuściński

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Aerial Report from the Tsavo Conservation Area - 10/14/2016
Africa


Highlights in September included a sighting of a pride of lions
basking on a sandy beach on the Athi River, a honey badger near
Lugard’s Falls, a melanistic serval cat, several sightings of
free-range black rhinos in Tsavo East, and a pack of over 40 wild dogs
in Tsavo West.

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"One of the defining bifurcations of the future will be the conflict between information masters and information victims." 17-SEP-2012
Law & Politics


Now set these events alongside these comments from the US army war
college quarterly 1997. The US officer assigned to the deputy chief of
staff (Intelligence), charged with defining the future of warfare,
wrote "One of the defining bifurcations of the future will be the
conflict between information masters and information victims."

This information warfare will not be couched in the rationale of
geopolitics, the author suggests, but will be "spawned" - like any
Hollywood drama - out of raw emotions. "Hatred, jealousy, and greed -
emotions, rather than strategy - will set the terms of [information
warfare] struggles".

read more


Trump Lashes Out at Accusers, Says Allegations Are All Lies
Law & Politics


Donald Trump lashed out against what he called “phony” accusations of
inappropriate sexual contact leveled by several women, two more of
whom came forward on Friday.

Trump launched into his defense at a rally Friday afternoon in
Greensboro, North Carolina, saying he is being attacked with lies and
slander. He later put out a statement saying he would bypass the
national media to address the country “in a more personal way” about
his plans.

Trump, whose campaign has been roiled by the accusations and a 2005
recording in which he bragged about kissing and groping women without
their consent, indicated he welcomed the chance to respond. He even
suggested that one of the women wasn’t attractive enough to draw his
attention. “She would not be my first choice, that I can tell you. You
don’t know, that would not be my first choice.”

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Photos: #Syria talks underway in #Lausanne Sadegh Ghorbani @GhorbaniSadegh
Law & Politics


Map: Battles between state and non-state groups in #Africa in the
first half of 2016 | @ACLEDINFO Africa Visual Data ‏@AfroDataCharts

https://twitter.com/AfroDataCharts/status/781058476390944768

Distribution of #African cities with populations of more than
500,000 | @OECD_Centre @OECDdev @IIED @Dsatterthwaite Africa Visual
Data ‏@AfroDataCharts

https://twitter.com/AfroDataCharts/status/786947341232242689

Comparison of historical GDP growth rates to #African country
stability rankings | @McKinseyAfrica @McKinsey_MGI Africa Visual Data
‏@AfroDataCharts

https://twitter.com/AfroDataCharts/status/787169926029185024

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Currency Markets at a Glance WSJ
World Currencies


Euro 1.0981
Dollar Index 98.07
Japan Yen 104.28
Swiss Franc 0.9892
Pound 1.2167
Aussie 0.7600
India Rupee 66.805
South Korea Won 1142.71
Brazil Real 3.2043
Egypt Pound 8.9026
South Africa Rand 14.3312

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Euro 'house of cards' to collapse, warns ECB prophet Telegraph
World Currencies


"One day, the house of cards will collapse,” said Professor Otmar
Issing, the ECB's first chief economist and a towering figure in the
construction of the single currency.

The central bank already holds over €1 trillion of bonds bought at
"artificially low" or negative yields, implying huge paper losses once
interest rates rise again. "An exit from QE policy is more and more
difficult, as the consequences potentially could be disastrous," he
said.

"The decline in the quality of eligible collateral is a grave problem.
The ECB is now buying corporate bonds that are close to junk, and the
haircuts can barely deal with a one-notch credit downgrade. The
reputational risk of such actions by a central bank would have been
unthinkable in the past," he said.

read more





Scientists working in Tanzania have cataloged a large and extremely rare trove of human footprints left behind some 5,000 to 19,000 years ago
Africa


Scientists working in Tanzania have cataloged a large and extremely
rare trove of human footprints left behind some 5,000 to 19,000 years
ago when a group of people slogged their way across muddy terrain
along the southern shore of Lake Natron.

The more than 400 footprints are located at a site called Engare Sero,
not far from a volcano known as Ol Doinyo Lengai (”mountain of god,”
in the local Maasai language), National Geographic reported.

These aren’t the oldest known prints made by modern humans. That
distinction belongs to “Eve’s footprints,” a set of prints discovered
in South Africa in 1995 that date back about 117,000 years.

But no other site in Africa has as many ancient Homo sapiens
footprints. That makes the Engare Sero prints a big deal ― especially
given how much ancient footprints, and the ancient paths on which
they’re made, can tell us about our distant ancestors.

“It’s a very complicated site,” Dr. William Harcourt-Smith, a City
University of New York paleoanthropologist and a member of the team of
researchers, told NatGeo. “There’s one area where there are so many
prints, we’ve nicknamed it the ‘dance hall,’ because I’ve never seen
so many prints in one place. It’s completely nuts.”

”I really felt emotional ― these were the footsteps of our ancestors,
and I was able to see them in the field shortly after their
discovery,” she said in the email. “It was very exciting for me.”

read more


Democratic Republic of Congo in crisis as elections are delayed @FT
Africa


The political crisis in the Democratic Republic of Congo deepened on
Sunday after the ruling coalition and some smaller opposition parties
agreed to delay presidential and parliamentary elections by 18 months
to April 2018.

The main opposition parties have yet to comment on the decision but on
Saturday their umbrella organisation, Rassemblement, called for a
general strike, or “dead city day” in the capital Kinshasa on
Wednesday to show President Joseph Kabila “a yellow card”.

-> Ethiopia @TheStarKenya Insert Link

Ethiopia has always loomed large in my imagination from the time at
Prep School when my Ethiopian Friend Ezana Haile, could not go home
and came to spend the vacation with us in Mombasa. I recall reading
The Emperor by Ryszard Kapuściński and in that book Kapuściński
recounts the tale of Lulu, Haile Selassie's lap dog that was allowed
to piss on the shoes of dignitaries, and the courtier whose job for 10
years was to wipe those shoes clean with a satin cloth. That Book also
speaks to how the Cushion Bearer [The Emperor was very short and
therefore had to perched on cushions so as not to be beneath his
Subjects] became an all-powerful Figure at the Imperial Court.
Kapuściński was subsequently trashed for his poetic licence in his
reportage but I accept his mea culpa

"You don't understand a thing. I'm not writing so the details add up –
the point is the essence of the matter."

Of course, Bob Geldof [once of the Boomtown Rats] also inserted
himself into this Ethiopian montage of mine with his totemic ''Do they
know its Christmas?''

I first visited Addis Ababa in 2005. It was eerie and disconcerting
sitting in the wonderfully well-appointed Sheraton Hotel perched on
the Hill and knowing that an almighty fracas had taken place a near
enough 200 people had been shot dead a few short weeks before. It took
me about three hours to send an Email. The Ruling Party EPRDF [which
overthrew the Derg and Mengistu Haile Mariam in 1991] brooked no
dissent then. We are more than a decade down the road from that time
and what is clear now is that the dissent has metasized to the point
that the Regime has seen fit to impose a 6 month state of Emergency.

Ethiopia has been a Sub-Saharan-African Poster Child with real GDP
growth averaging 10.9% between 2004-2014. Many Folks tout a
double-digit growth rate but the Ethiopians have done it and not for
just a brief moment but for more than a decade. Ethiopia was measured
as the second poorest country in the World in 2000 and was widely
expected to reach middle income status by 2025. Ethiopian Airlines
criss crosses the African skies.  Just a few days ago on October 5th
the Ethiopian government unveiled the country’s new $3.4 billion
railway line connecting the capital, Addis Ababa, to Djibouti, on the
Red Sea. Every Multi-National Company I came across was high-tailing
it up there to set up shop. Kenyan Banks were salivating at the
prospect of unlocking this market opportunity. Justin Lin the former
World Bank Chief Economist spoke of how Ethiopia was in prime position
to reap the transfer of low-cost Chinese manufacturing from China into
Africa.

When I saw the results of the last Election where the Ruling Party won
100% of the seats in Parliament, I thought to myself why would you
want to publish a result like that which is not only not credible its
incredible. However, the Government got a Free Pass from the
International Community not least because Ethiopia occupies a strong
geopolitical position. It has been seen as a bulwark against Islamic
Fundamentalism and is able to marshal and project a compelling
military spear in the region.

The Government was able to also point at the Trajectory of its Growth
and say look at the Parabola of our GDP.

However, as Maplecroft said ''Ethiopia's reputation for stability has
been shattered by an escalating series of protests in Oromia and
Amhara regions"

The Government is talking about a number of around 500 when it comes
to Protesters killed over the last few months. Most Observers I speak
to are talking of at least 10x.

Foreign Companies have come under attack. Fana Broadcasting reported
on its website that 11 companies ranging from textile firms to a
plastics maker to flower farms had been damaged or destroyed, while
more than 60 vehicles had been torched. Dutch firm FV SeleQt said its
300-hectare vegetable farm and warehouse had been plundered. Another
Dutch firm, Africa Juice, said its factory had been partially
destroyed. The manager of one of the Turkish companies, textile firm
Saygin Dima, told Reuters this week at least a third of his factory
was burned down.

According to The Economist:

''One factor in the government’s decision was a spate of attacks on
holiday lodges at Lake Langano, and on Turkish textile factories in
Sebeta, both in the restive Oromia region south of the capital, on
October 5th. The attackers were well-organised and armed, some of them
reportedly mounted on motorbikes. These acts, officials suggest, were
the final straw''

In Paul Virilio's book ‘Speed and Politics’ he says: “The
revolutionary contingent attains its ideal form not in the place of
production, but in the street, where for a moment it stops being a cog
in the technical machine and itself becomes a motor (machine of
attack), becomes in other words a producer of speed.’’

By announcing a State of Emergency the Government is double-downing on
its one golf club [Repression] Regime survival Strategy and trusting
that Ryszard Kapuściński's dictum will apply

“If the crowd disperses, goes home, does not reassemble, we say the
revolution is over.”―

The Government need to change tack and effect a course correction and
History shows us that this course correction is one of the most
difficult things to pull off.

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May 2015 ''The revolutionary contingent attains its ideal form not in the place of production, but in the street''
Africa


PAUL Virilio (born 1932) is a French cultural theorist and urbanist.

In his book ‘Speed and Politics’ he says: “The revolutionary
contingent attains its ideal form not in the place of production, but
in the street, where for a moment it stops being a cog in the
technical machine and itself becomes a motor (machine of attack),
becomes in other words a producer of speed.’’

As we look around the world today, we can see a battle for the
‘street’ from the streets of Bujumbura to the streets of Baltimore. In
November last year, I wrote about Ouagadougou’s signal to sub-Saharan
Africa and concluded that: We need to ask ourselves how many people
can incumbent shoot stone cold dead in such a situation – 100, 1000,
10000?

This is another point: there is a threshold beyond which the incumbent
cannot go. Where that threshold lies will be discov- ered in the
throes of the event.

Therefore, the preeminent point to note is that protests in Burkina
Faso achieved escape velocity.

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Pravin Gordhan said he has no intention of relinquishing his post unless @SAPresident fires him Bloomberg
Africa


South African Finance Minister Pravin Gordhan described fraud charges
against him as frivolous and unfounded and said he has no intention of
relinquishing his post unless President Jacob Zuma fires him.

“If I don’t get alternative instructions, I’m here to stay,” Gordhan
said in a speech from Pretoria broadcast by teleconference to the
Thomson Reuters Africa conference in Cape Town. “We are two weeks away
from presenting the medium-term budget policy statement. I have every
intention of delivering that medium-term budget policy statement.”

Gordhan’s lawyers said in a statement that they won’t make a
submission to the chief prosecutor to reconsider the charges because
“he does not have any confidence” in the prosecuting authority’s
“willingness to afford him a fair hearing.”

“It is for the public to ultimately judge who stands in the right
here, who looks at principles and who wants social justice more than
anybody else,” he said. “It’s about which cause is the right cause. We
are not about to give up on the core values of the ANC.”

The rand gained as much as 0.8 percent after the speech and was 0.7
percent stronger at 14.1528 per dollar at 2:56 p.m. in Johannesburg on
Friday, reversing an earlier decline.

Gordhan was reappointed to a post he held from 2009 to 2014 in
December after Zuma was pressured to backtrack on a decision to
replace the respected Nhlanhla Nene with a little-known lawmaker.
Opposition parties and some members of the ANC say Zuma is seeking a
more pliant finance minister.

The political uncertainty in South Africa has raised the risk of the
nation’s credit rating being downgraded to junk in December by S&P
Global Ratings Ltd., which has a negative outlook on the country’s
BBB- assessment.

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Nigeria Trading Exchange Calls on Central Bank to Free Naira
Africa


The head of Nigeria’s foreign-exchange trading platform said the
central bank is using “strong moral suasion” to prevent the naira from
depreciating to a market-related level, and called on the regulator to
let the currency float freely.

The market’s dysfunction is hindering the country’s economic recovery
by deterring inflows from foreign investors and hurting manufacturers
dependent on imports, according to Bola Onadele, the chief executive
officer of Lagos-based FMDQ OTC Securities Exchange. FMDQ started
operations in 2013 and its chairman is Sarah Alade, deputy governor of
the central bank.

“What’s happening now, it’s not even a managed float,” Onadele said in
an interview in Lagos, the commercial center, on Oct. 11. “I’m not
sure what we’re doing. I don’t know the objective, the strategy and
success benchmarks. The dealers and bank CEOs don’t want to be
reprimanded. If they quote rates freely, they may be reprimanded by
the central bank.”

Central bank Governor Godwin Emefiele abandoned a 16-month currency
peg on June 20 that was blamed by analysts for sending the economy to
the brink of recession and inflation to a decade-high of 18 percent.
While the naira has weakened 36 percent since then to around 310 per
dollar, investors say the exchange rate is still being manipulated.
The currency has fallen to 460 from 335 on the black market in that
period as businesses struggle to access foreign exchange from their
banks.

“The average daily turnover in the spot market used to be $1 billion
and now it’s less than $100 million,” said Onadele, a former chief
dealer at Citigroup Inc.’s Nigerian unit. “I don’t believe the
parallel market is illegal any more. We have inadvertently legitimized
it through some of our actions. It may no longer be as small a market
as we used to think. If you have $1,000 to convert to naira, will you
sell it at 315? No rational person will do that. You’ll sell to a
bureau de change and get 460.”

Since the devaluation some bond investors, including Cape Town-based
Allan Gray Ltd., have bought Nigerian T-bills, which yield as much as
20 percent. Most are still too worried about the prospect of a further
fall in the naira to re-enter the market, Onadele said. Naira one-year
forward contracts traded at a record high of 430 per dollar on Friday,
suggesting further weakness is in store.

“No one believes the 305 price of the naira on their screens,” Onadele
said. “That devaluation risk is still there. It would only melt away
when the market establishes a credible price formation on the back of
transparent trading operations by the banks. We need to have proper
price discovery.”

Some banks and offshore traders were thinking of shorting the dollar
when the naira dropped to around 360 in mid-August, which suggested
that was “almost the equilibrium point,” he said.

The central bank felt the need to halt the depreciation at that point
“through strong moral suasion,” Onadele said. “The interference was
obviously not appreciated by both the domestic and international
sellers, as supply of foreign exchange dried up.”

read more


Nigeria All Share Bloomberg -2.73% 2016
Africa


AFP news agency ‏@AFP Nigeria's Buhari says wife 'belongs to my kitchen'

https://twitter.com/AFP/status/786957423043088384

Ghana Stock Exchange Composite Index Bloomberg -11.25% 2016

http://www.bloomberg.com/quote/GGSECI:IND

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The Most Dangerous Cup of Coffee in the World Wall Street Journal
Africa


Artisanal roasters seeking the next great specialty coffee have
descended on Congo despite Kalashnikovs and corruption; ‘good body and
unthreatening complexity’

BUKAVU, Democratic Republic of Congo—A dozen artisanal coffee
aficionados from around the world hovered their noses above cups of
steaming grounds and inhaled deeply. Then they tasted the coffee,
swishing or chewing it, spit out the leftovers and used calculators on
their smartphones to tally a final score for each sample of beans.

“I thought this was so great. It was so fleshy,” head judge Beth Ann
Caspersen, who lives in Rhode Island, said about the highest-rated
brew in one round of the competition, limited to coffee grown in this
central African nation. It was easy to forget how Kalashnikov-wielding
guards milled around outside while clapped-out sedans swerved around
gaping potholes.

Congo is one of the last frontiers in a global scramble for the
world’s best-tasting coffee. The rise in demand for specialty coffee,
which accounts for one of every two cups sold in the U.S., has
encouraged exporters, roasters and retailers to go places where the
potential is huge—and so are the risks.

read more



Kenya Airways' chairman to step down this year @FT
Kenyan Economy


Kenya Airways’ chairman has said he will step down this year as the
crisis blighting the lossmaking airline escalated on Sunday when
outsourced staff failed to turn up for work, forcing flights to be
cancelled.

The disruption comes two days before the pilots’ union is set to begin
industrial action in protest at management’s perceived failure to turn
the company round after four years of losses despite a court ruling
any strike would be illegal.

Pilots are demanding that Dennis Awori, Kenya Airways’ chairman, and
Mbuvi Ngunze, its chief executive, are replaced.

Mr Awori, who took over as chairman in November, told the Financial
Times he would quit as chairman “in this quarter”. But he denied it
was in response to the demands from the pilots and outsourced staff.

“I took on the responsibility for a year to embed the turnround plan,”
he said. “The half-year results show the plan is working.”

Kenya Airways, sub-Saharan Africa's second-largest airline by number
of destinations announced its first-half results on Thursday, two
weeks early, in an effort to ease the mounting pressure it is under
after recording the country’s biggest ever corporate loss, Ks26bn
($256m), last year.

The figures showed a reduction in net losses from Ks12bn to Ks5bn, a 4
per cent rise in passengers and an increase in cabin load from 68 per
cent to 71 per cent compared with the same period last year.

On Friday, management said flights to Abuja, Nigeria, and Gaborone,
the Botswanan capital, would be suspended as part of the
restructuring.

The pilots were unmoved, however, and appear determined to take action
to force change in the Nairobi-listed airline, in which the Kenyan
government has a 29.8 per cent stake and Air France-KLM owns 26 per
cent.

They have, however, said they are open to negotiations, and talks are
expected to be held on Monday.

Outsourced contract staff, who are calling for better wages and
benefits, have also started protesting in the past three days. Many,
including some cabin crew, refused to work on Sunday, forcing five
flights, or 10 per cent of the morning’s schedule, to be cancelled and
one to be delayed.

Parliament has also put pressure on Kenya Airways, with senior MPs
saying they would not authorise any further cash injections until
senior bosses are replaced.

Mr Ngunze has refused to consider resigning but government ministers
have said a “major restructuring” of the airline is expected later
this month.

Analysts say that Kenya Airways, which has sold off many assets in the
past year, needs a cash injection of almost $1bn.

Mr Awori declined to discuss who should replace him, saying it was for
the board to decide. Earlier this month, Michael Joseph, a former
chief executive of Safaricom, the country’s dominant telecoms group,
joined the board, prompting speculation he would become chairman.

read more


Audit exposes how employees, suppliers wrecked Kenya Airways East African
Kenyan Economy


The case points to a complex scheme in which employees of Kenya
Airways colluded with bankers, suppliers, ticketing agents and oil
companies to steal from the airline through forgery and manipulation
of the accounts. This is laid bare in the leaked August 2016 audit
report by Deloitte, which The EastAfrican has seen.

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Kenya Tea Development Agency (KTDA) is set to pay out Sh44.72 billion second payment to small-holder tea farmers starting next Monday, officials have said.
Kenyan Economy


This is the largest ever payout and will be distributed to various
farmers’ banks and sacco accounts either Monday or Tuesday next week.

The agency’s head of corporate affairs Ndiga Kithae said growers will
receive the payment better known as ‘bonus’ at an average rate of
Sh36.26 a kilo of green leaf. This represents a 31.33 per cent
increase over the 2014/15 average rate of Sh27.61 per kg.

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by Aly Khan Satchu (www.rich.co.ke)
 
 
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October 2016
 
 
 
 
 
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