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Satchu's Rich Wrap-Up
 
 
Monday 20th of March 2017
 
Morning
Africa

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Macro Thoughts

Home Thoughts

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We spent a lovely afternoon at the #KCBKarenMasters at @KarenGolfClub @SafaricomLtd @KCBGroup
Africa


I met Ian Douglas-Hamilton at the High Commissioner's and I started
re-reading his Book which he wrote with his wife called ''Among the
Elephants''

read more



Lake Manyara
Africa


At the age of 23, Douglas-Hamilton moved to Tanzania to live in the
wild in Lake Manyara National Park, where he carried out the first
scientific study of the social interactions of the African elephant.
From that study came his hypothesis, rooted in behavioural ecology,
that elephant movements could hold the key to understanding their
reactions to their changing environments. Douglas-Hamilton argues that
collecting and analysing large amounts of data on elephant locations
and migrations can lead to insights into their choices, and therefore
assist in their protection against rising threats, including poaching
and human-wildlife conflict.

read more




MANAGING YOURSELF Shape Serendipity, Understand Stress, Reignite Passion John Hagel III and John Seely Brown
Africa


we believe you can shape serendipity. This is a very counter-intuitive
notion. After all, most of us believe that serendipity is pure luck.
How can you shape luck? While chance is an intrinsic element of
serendipity, we believe that you can significantly alter the
probability and quality of the unexpected encounters in our lives.

Three choices determine how we shape serendipity:
Where we spend our time. People are spending more time in virtual
environments, especially social network platforms, because they
instinctively sense that these environments are often rich catalysts
for serendipity. At the same time, people are making choices about
where they spend their time in physical environments that also shape
serendipity. While the world is getting flatter due to technology
advances, people still move to large urban centers, frequent
conferences, and participate in institutions which increase the
likelihood of unexpected encounters with people relevant to their
interests and needs.
How we spend our time. These physical and virtual environments attract
a large number of people. How do we stand out and get noticed so that
we attract unexpected encounters?
How we maximize the value of the unexpected encounter. If we are not
prepared when the unexpected encounter finally occurs, it will not
yield much value. Listening deeply, being attentive, and understanding
what the other person is involved in prove invaluable in converting a
chance meeting into a more valuable sustained relationship that keeps
on giving.

read more













Deutsche Bank to issue 687.5mln new shares at (pound)11.65 each. The subscription period will run from Mar21-Apr6. @Schuldensuehner
International Trade


Deutsche Bank has said earlier this month that the capital increase
was fully underwritten at 11.65 euros a share by banks including
Credit Suisse Group AG, Barclays Plc, Goldman Sachs Group Inc., BNP
Paribas SA, Commerzbank AG, HSBC Holdings Plc, Morgan Stanley and
UniCredit SpA. The group of banks underwriting the deal has increased
to 30, it said Sunday.

Qatar’s royal family and China’s HNA Group Co., two of Deutsche Bank’s
biggest investors, plan to buy shares in the rights offer with a view
to increasing their stakes, people with knowledge of the matter said
earlier this month.

read more


Currency Markets at a Glance WSJ
World Currencies


Euro 1.0763
Dollar Index 100.18
Japan Yen 112.52
Swiss Franc 0.9964
Pound 1.2385
Aussie 0.7724
India Rupee 65.405
South Korea Won 1122.65
Brazil Real 3.0910
Egypt Pound 18.05
South Africa Rand 12.6797

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Italy Has World's Healthiest People BBG
World Currencies


The high-heeled boot surrounded by five seas is ranked the healthiest
country on Earth in the Bloomberg Global Health Index of 163
countries. A baby born in Italy can expect to live be an octogenarian.
But 2,800 miles south in Sierra Leone, the average newborn will die by
52.

While Italy is among the most developed countries, growth has
stagnated for decades, almost 40 percent of its youngsters are out of
jobs and it’s saddled with one of the world’s highest debt loads
relative to the size of its economy. Yet Italians are in way better
shape than Americans, Canadians and Brits, who all suffer from higher
blood pressure and cholesterol and poorer mental health.

Italy also has "an excess of doctors," said Tom Kenyon, a physician
and CEO of the global relief organization Project Hope. Case in point,
one of the country’s most watched and long-running television shows is
called “A Doctor in the Family.”

Then there is the diet, rich in vegetables and drizzled with extra
virgin olive oil. Adam Drewnowski, director of the Center for Public
Health Nutrition at the University of Washington, has written about
the importance of consumers having access to fresh produce, fruit,
lean meats and fish.

read more



Gold 6 month INO 1234.175 [Gold rose 0.4 percent to $1,233.88 an ounce, climbing for a fourth day]
Commodities


West Texas Intermediate crude slid 0.8 percent to $48.38 a barrel. It
has dropped 10 percent this month, heading for the steepest one-month
slide since July.

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Zinc prices jumped 7% on the day in October 2015 when the Switzerland-based company said it was shutting down production amounting to 4% of global production of zinc.
Commodities


Prices for the metal have climbed 70% since as demand outpaces supply,
outperforming copper (up 15%) and aluminum (up 20%) during a
broad-based global commodities rally.

On the earnings call, Mr. Glasenberg said zinc prices had fallen so
low in 2015 that it made more sense to keep it in the ground for the
long run. He credited zinc’s price rise with Chinese demand and
“voluntary cutbacks” of supply like Glencore’s, “one of the leaders in
that area.”

Analysts agreed. The price rally has “been driven by Glencore’s
decision,” said Vivienne Lloyd, a metals analyst at investment bank
Macquarie Group.

Glencore has said it can pull it off because it combines one of the
world’s largest mining divisions with a savvy commodity-trading house.


 


If Kuwait’s experience this week is a guide, the expected bond issues
will be well-received by investors. The Gulf state—one of the world’s
largest oil exporters—received about $29 billion of orders for a
two-tranche $8 billion bond sale, Nicolas Parasie writes. Final
pricing was tight, at 0.75 percentage point above US Treasurys for the
5-year, $3.5 billion tranche and 1 percentage point above US Treasurys
for the 10-year, $4.5 billion portion.

read more






Rescue workers were so overwhelmed that they put the dead in coolers normally used for fish
Africa


The boat attacked on Friday had launched illegally into the Red Sea
from Yemen’s west coast, heading toward Sudan, from where its Somali
passengers hoped to make their way to Egypt, Libya and eventually
Europe, said Mr. Fadal, the Yemeni port official.

But during the night, it came under fire. Some survivors said a
battleship struck it first, then a helicopter.

“I took cover in the belly of the ship,” said Ibrahim Ali Zeyad, a
Somali who survived the attack. “People were falling left and right.
Everyone kept screaming, ‘We are Somali! We are Somali!’”

Understand the world with sharp insight and commentary on the major
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But the shooting continued for what felt like half an hour.

“The helicopter was right over us and it had these huge lights on,” he
said. “They just kept shooting.”

read more


Horn of Africa Neighbors Make Trade Deal as Economic Ties Deepen
Africa


Ethiopia and Djibouti have “integrated ourselves” through railways,
power, telecommunications and fiber optics, Ethiopian Prime Minister
Hailemariam Desalegn told reporters Friday in Addis Ababa after talks
with Djiboutian President Ismail Omar Guelleh. “Djibouti is the main
port for our transactions and trade. We are also a source of income
for Djibouti. We can either die or survive together.”

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Charts Show Rand Bears Are Running for Cover, With One Proviso
Africa


The median forecast of analysts in a Bloomberg survey predicts the
rand at 13.70 per dollar by the end of the second quarter. While that
may seem bearish -- the currency traded at 12.7486 per dollar on
Friday -- the forecast has dropped from 15.83 a year ago. The last
time analysts saw the rand below 14 per dollar was in October 2015.

The rand’s realized volatility against the dollar has dropped to the
lowest level since December 2015. Implied volatility, based on prices
of options contracts to buy and sell the currency and a predictor of
future price swings, is also at a 15-month low. That makes the rand a
less risky option for traders who borrow dollars to buy high-yield
currencies, known as the carry trade. The dollar-rand carry trade has
returned 9.25 percent this year, the most out of 31 major currencies
tracked by Bloomberg.

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Ghana's President defends appointing 'elephant-size' government of 110 ministers
Africa


Nana Akufo-Addo hit back at his opponents saying it is 'a necessary
investment' and that 'it is not going to be a holiday' for ministers

read more


@alykhansatchu Sadly for President @NAkufoAddo there is no defence none zero zip.
Africa


Ghana Stock Exchange Composite Index Bloomberg +11.28% 2017

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

@IFCAfrica  .@IFC_Org is proud to support #Congo Call Center, the
1st independent call center in the #DRC, through #SMEVentures.

https://twitter.com/IFCAfrica/status/842624102263349253

Mark de Blois‏ @mdeblois  Able to view very interesting weekly
#Sufi dance in #Omdurman yesterday #Khartoum #Sudan

https://twitter.com/mdeblois/status/843134795106402305

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Among Mango Sellers and Shoeshine Men, a Stock Market Flourishes
Africa


On Abidjan’s Avenue Joseph Anoma, amid the bustle of shoeshine men,
fruit sellers displaying mangoes and bananas in the shade of a tree,
and mobile-phone vendors hustling for custom, a stock exchange is
showing new life.

The Bourse Regionale des Valeurs Mobilieres, or BRVM -- a regional
exchange covering seven Francophone countries and Guinea Bissau --
occupies a modest office block in the Ivory Coast’s commercial
capital, dwarfed by the skyscraper of its next-door neighbor, the
African Development Bank. But just six years ago, the BRVM was in
limbo, having temporarily relocated to the Malian capital, Bamako,
after soldiers armed with AK-47 assault rifles invaded its
headquarters amid post-election chaos in the West African nation.

Since its return to Abidjan, the BRVM has grown from one to four
floors, including a new trading room and a giant street-facing screen
scrolling stock prices. It is in the midst of an unprecedented
listings boom, with six successful offerings since late 2014, and
another 16 in the works, according to Chief Executive Officer Edoh
Kossi Amenounve. And it is introducing ordinary people -- teachers,
clerks and government workers -- to investing in capital markets.

When Coris Bank International SA, Burkina Faso’s biggest lender,
started a public offering last year, it planned to keep the sale open
for two weeks. It had to close the book after five hours as bids
swelled to three times the target. In July, Societe Ivoirienne de
Banque, a unit of Morocco’s Attijariwafa Bank, received 13,000 bids in
one day totaling 55 billion CFA Francs ($91 million), twice what it
looked for. In both cases, investors were mostly individuals and for
half of them, it was the first time they had ever bought shares.

“Our offices were besieged, it was a near-riot situation,” said
Omo-Dele Egue, the director-general of BOA Capital Securities. “We got
more than 1,000 people in Abidjan for only one counter. Everyone
wanted to buy shares because they were convinced it would close in one
day.”

A daily stock-market television show and weekly training seminars
organized by the BRVM, which attract up to 60 participants at a time,
are helping to stoke interest. The exchange has also partnered with
mobile-phone companies including Orange SA and MTN Group Ltd. in four
countries to send daily market news to investors via text messages.

The service, called “Infos BRVM,” began two years ago and now has
56,000 subscribers, according to the bourse. For 300 CFA Francs
($0.48) a month, investors receive three texts per day with the latest
stock prices. The exchange is setting up a smartphone application
that’ll enable users to place orders from their mobiles.

“A change is taking place in the level of financial literacy,” said
Youssouf Carius, who heads Pulsar Partners, an investment fund based
in Abidjan. “There are many individuals looking for more interesting
deals than what the banks are offering at the moment.”

Among small investors getting a taste for stocks is Eric Kouakou, 34,
the head buyer for a private hospital in Abidjan. Until his niece
introduced him to an investment club, Kouakou thought the equity
market was only for the rich.

“I like taking risks, so I immediately made arrangements and threw
myself into it,” Kouakou said. In about a year, Kouakou participated
in three IPOs, bought shares in eight companies, and built a portfolio
of about 2.5 million CFA francs ($4,090).

The BRVM trades securities of 43 companies in eight West African
nations, the majority from Ivory Coast, and is heavily weighted toward
banks and telecommunications. The bourse’s market capitalization of
about $16 billion places it sixth among Africa’s 13 major exchanges,
and trading volumes rose to 409 billion CFA francs last year, from 81
billion CFA francs in 2011.

The number of securities trading accounts at BOA Capital Securities
has doubled in the past two years to about 10,000, Egue said. Many of
the new investors are part of the middle class but the base is wider
-- from wealthy individuals to students and shopkeepers investing
amounts from as little as 50,000 francs ($81) to 200 million francs
($320,000), he said.

The inclusion of the benchmark index in the MSCI Frontier Markets
Index means foreign investors are starting to take notice, according
to Bertrand Llinas, a portfolio manager at Paris-based Lfpi Asset
Management SAS.

Companies trading on the BRVM are operating in some of the fastest
growing economies in the world, according to World Economic Forum
data. Ivory Coast is leading at an average of 9 percent growth per
year since 2012.

Visitors watch stock price charts on display screens inside the
Regional Securities Exchange SA, also known as the Bourse Regionale
des Valeurs Mobilieres SA (BRVM), in Abidjan, Ivory Coast, on Monday,
Aug. 31, 2015. The office is an electronic stock exchange for eight
West African countries including Benin, Burkina Faso, Guinea Bissau,
Ivory Coast, Mali, Niger, Senegal and

“The new economic attractiveness has put the BRVM on the radar of
international investors,” said Llinas, whose $6.7 million Frontier
Africa fund returned 2.2 percent in the past month, beating nine out
of 10 peers. “The BRVM stock exchange is well diversified, allowing
investors to get exposure to different sectors of the economy.”

The exchange is seeking to boost its “relatively low” liquidity by
encouraging companies to split their shares and agree to float at
least 20 percent of their equity, Amenounve said. He and his team have
criss-crossed the globe to meet investors from Paris to London, New
York and Shanghai in the past three years.

If West Africans are thirsty for new investment opportunities, it’s
also because -- before the current boom -- there had been no new
listings for four years, said Kadi Fadika-Coulibaly, the head of SGI
Hudson & Cie, an Abidjan-based brokerage. Some recent IPOs were part
of Ivory Coast’s program to sell the stakes it owns in at least 15
state-owned companies. But closely held firms are increasingly turning
to the bourse to raise capital, she said.

“There is a lot of demand, and still not enough on offer,” Coulibaly
said. “But it’s changing.”

read more


How @realDonaldTrump's foreign policy may impact #Africa's economic position @MadeItInAfrica
Africa


PRESS OFFICE: Standard Chartered Bank

Aly-Khan Satchu is a sub-Saharan Africa economic and geopolitical
analyst and the founder of the East African financial portal
www.rich.co.ke

I was speaking with Charles Hecker of Control Risks about Control
Risk’s RiskMap2017 which flagged the Trump administration as the
number one risk in 2017. During that conversation, he congratulated
Africa for staying out of Trump’s rat-a-tat Twitter feed and by
extension, below his radar.

Popping above Trump’s radar has been expensive. In almost every case,
when the president unleashes his Twitter fury, the share price of the
affected company drops – in some cases fairly significantly.
Nordstrom, however, snapped that trend. As I reflected on Trump’s
tweets, I recalled an interview with StanChart PLC’s Bill Winters
where he said that the bank was “war-gaming” trade disruptions after
Donald Trump’s election. “Clients in our markets are focusing on
diversifying trading partners as much as possible to avoid a
cliff-edge effect,” if Trump’s administration implements protectionist
policies, Winters added.

I thought to myself, I wonder if Africa is “war-gaming” the effect of
a Trump administration on the continent and modelling where the
“cliff-edge effect[s]” might lie.

Africa has barely featured so far. The first African leader to receive
a call from President Trump was Egyptian President Abdel Fattah
al-Sisi on 23 January 2017. Then on 13 February, Trump spoke with
President Buhari and President Zuma. President Zuma will be glad of
that call because he had in fact turned down a request to meet with
the presidential candidate Trump in New York. Other than that, the New
York Times did report on a series of questions from the Trump
transition team to the State Department on 13 January 2017. The tone
was noteworthy if not just plain sceptical.

“How does US business compete with other nations in Africa? Are we
losing out to the Chinese?”

“Most of AGOA imports are petroleum products, with the benefits going
to national oil companies, why do we support that massive benefit to
corrupt regimes?” the questionnaire asks.

“With so much corruption in Africa, how much of our funding is stolen?
Why should we spend these funds on Africa when we are suffering here
in the US?”

“We’ve been fighting al-Shabaab for a decade, why haven’t we won?”
poses one question.

“We’ve been hunting Kony for years, is it worth the effort? The LRA
has never attacked US interests, why do we care? Is it worth the huge
cash outlays? I hear that even the Ugandans are looking to stop
searching for him, since they no longer view him as a threat, so why
do we?”

“Is PEPFAR worth the massive investment when there are so many
security concerns in Africa? Is PEPFAR becoming a massive,
international entitlement programme?”

“A strange attitude runs through this,” J. Stephen Morrison, director
of the Global Health Policy Center at the Center for Strategic and
International Studies said. “There’s a sort of recurrent scepticism
that Africa matters to US interests at all. It’s entirely negative in
orientation.”

The Trump Administration has yet to appoint an Assistant Secretary of
State for African Affairs, whose appointment is the substantive Africa
appointment in any US administration.

Remittances

However, let me start with the ”Executive Order Protecting The Nation
From Foreign Terrorist Entry Into The United States” dated 6 March
2017. Whilst only flagging two African countries [Somalia and Sudan],
the Executive Order speaks to a much more coercive and restrictive
immigration policy. It is estimated that a 30 million strong African
diaspora remitted nearly $40bn in 2010, equivalent to 2.6% of Africa’s
GDP. The $40bn figure is widely viewed to have a major understatement
bias because of the volume of money that is remitted informally. The
number might be three times larger than the $40bn figure. The World
Bank estimates that 28% of the $40bn, which is $11.2bn, or if you
prefer the $120bn (28% of which is an eye-popping $33.6bn) originates
from the US. Whichever way you care to cut it, its a big and material
number. A coercive Trump immigration policy is surely going to taper
the absolute remittance figure out of the US into Africa. Africa
therefore finds itself at the ”bleeding edge” not unlike Mexico. A big
taper in US remittances bound for Africa is a clear and present
danger.

AGOA

Another risk is around AGOA. It is worth noting that AGOA is solely a
US law and it could conceivably be changed by a simple act of the
American Congress. Combined two-way trade between the US and
AGOA-eligible sub-Saharan African (SSA) countries has doubled between
2001 and 2014. Peak trade flows were recorded in 2008, valued at
almost $100bn. The global financial crisis subsequently resulted in a
significant contraction in SSA’s exports to the US although the period
since then has initially seen a gradual recovery in trade flows,
before declining again after 2011. In 2014, two-way trade was worth
$50bn, and eligible AGOA countries’ trade surplus with the US had
declined to a mere $2bn.

SSA exports to the US have consistently exceeded imports resulting in
a significant trade surplus in favour of African countries overall;
however this surplus has declined and is now very small (2014). SSA’s
largest exporter by value has traditionally been Nigeria which
accounts for 32% (in 2013) of combined exports to the US based on
exports from all AGOA beneficiaries in 2013. Angola and South Africa
each account for a further 24% of the combined total (2013). A number
of countries on the east coast of Africa have sought to leverage
textile exports, for example, into the US – a reversal of AGOA would
cause serious damage to those businesses.

PEPFAR

President Bush is seen as an hero in Africa. In 2003, in a move that
has been described as his greatest legacy, George W. Bush created a
programme called PEPFAR – the President’s Emergency Plan for AIDS
Relief. At the time, more than 20 million people in sub-Saharan Africa
were living with AIDS, but only 50,000 had access to antiretroviral
drugs that manage the disease and prevent its spread. Now, thanks to
PEPFAR, 11.5 million people are on those drugs. It has been variously
described as a “globally transformative lifeline” and “one of the best
government programmes in American history”.

Bush initially committed $15bn to PEPFAR over five years, but the
programme was renewed in 2008 and 2013 and has since received over
$72bn in funding. As well as disseminating treatments, that money has:
funded HIV testing and counseling for 74 million people; provided
critical care and support to 6 million orphans and vulnerable
children; prevented 2 million babies from being born with HIV by
offering drugs to mothers; trained 220,000 health workers; supported
11 million voluntary male circumcisions to prevent the spread of HIV;
improved health care in the various focus countries; and supported
services for controlling other diseases like malaria and tuberculosis.
One study showed that within five years, PEPFAR had roughly halved the
adult death rates in nine targeted countries, at a time when mortality
in other SSA nations barely declined. During that period, African
adults were 16% less likely to die if they lived in one of the
PEPFAR-targeted nations. It is estimated that the US has delivered
$72bn of funding over 13 years which equates to $5.53bn a year. Any
reduction in this spend will have immediate negative effects.

US aid to Africa

It is estimated that US aid for all of sub-Saharan Africa clocked
approximately $8bn [versus Afghanistan ($5.5bn), Israel ($3.1bn), Iraq
($1.8bn) and Egypt ($1.4bn)]. A big slash and burn of this budget
would be seriously problematic.

FDI

It was surely in the second term of President Obama that the penny
dropped in Washington about the trade and investment opportunity in
Africa. The US corporate sector had preceded President Obama. FDI into
Africa clocked $57.5bn in 2015. A significant slice of that originates
out of the US. In fact, when Kenya issued more than $2bn of Eurobonds,
66% of the issue was bought by US investors.

Counter-terrorism

The US seriously ratcheted its military role higher on the continent
over the last 10 years. Nick Turse who writes authoritatively in these
matters says:

In 2006, just 1% of commandos sent overseas were deployed in the US
Africa Command area of operations. In 2016, 17.26% of all US Special
Operations forces – Navy SEALs and Green Berets among them – deployed
abroad were sent to Africa, according to data supplied to The
Intercept by US Special Operations Command. That total ranks second
only to the greater Middle East where the US is waging war against
enemies in Afghanistan, Iraq, Syria, and Yemen. As recently as 2014,
there were reportedly only about 700 US commandos deployed in Africa
on any given day. Today, according to Bolduc, “there are approximately
1,700 [Special Operations forces] and enablers deployed… at any given
time. This team is active in 20 nations in support of seven major
named operations.” Using data provided by Special Operations Command
and open source information, The Intercept found that US special
operators were actually deployed in at least 33 African nations, more
than 60% of the 54 countries on the continent, in 2016. Early signals
[in particular in Yemen] are indicating that the Trump administration
is looking at Africa through a ”security-focussed lens” [Eliot Pence].
I expect a significant and parabolic move in this regard. I am sure
this insertion of a hard-power lever was in part designed to be a
lever with which to tilt the pitch against China’s exponential African
arrival. The US and China make interesting neighbours in Djibouti.

Africa is currently growing at a more than 20-year low. These are
choppy waters and for now Africans are sifting smoke signals trying to
work out what Trump might entail exactly.

read more






Policy making agility is key for a thriving economy Mar. 20, 2017, 12:30 am By ALY-KHAN SATCHU The Star
Kenyan Economy


I thank The British High Commissioner for the invitation to a
reception where the guest of honour was the U.K's Foreign Secretary
Boris Johnson. As you know, I am a big proponent of ''serendipity''
and believe it can be shaped. John Hagel III and John Seely Brown in
their outstanding article ''MANAGING YOURSELF Shape Serendipity,
Understand Stress, Reignite Passion'' reckon three choices determine
how we shape serendipity:

1. Where we spend our time.

2. How we spend our time. These physical and virtual environments
attract a large number of people. How do we stand out and get noticed
so that we attract unexpected encounters?

3. How we maximize the value of the unexpected encounter. If we are
not prepared when the unexpected encounter finally occurs, it will not
yield much value.

So there I am looking to insert myself into the flow. I introduced
myself and then turned and asked ''Foreign Secretary, have you met the
Central Bank governor?''

''Whats inflation?'' asks Boris.''9.3%'' says Dr. Njoroge.''Whats the
interest rate?'' Boris

''14%'' says Dr. Njoroge. We both added ''drought''

We did not have time to add President Kenyatta's comments from his
annual State of the Nation Speech where he had said:

''On the issue of access to credit for SMEs, it is unfortunate that
the un-intended consequence of the capping of interest rates was a
slow-down in lending by our commercial banks” The growth in credit
dropped from 16.8 per cent in January 2016 to 4.3 per cent in December
as per the latest Central Bank of Kenya figures.”

“This is an issue that concerns us and is one that I will actively
seek to resolve so that credit can start to flow again to the real
drivers of our economy,” said the President.

It is now widely accepted except by the die-hard Rate Cap Deadenders
that “The rates cap needs to be removed so that banks and the
government can work together to implement solutions proposed earlier,”
said Mr Habil Olaka, the chief executive of the Kenya Bankers
Association (KBA).

“The law was passed in good faith, but the negative consequences we
highlighted are now emerging.”

And here people is a key issue between countries that win and
countries that lose. Its all about the speed that policy-making
adjusts. Like Lao Tzu has said:“Men are born soft and supple; dead
they are stiff and hard. Plants are born tender and pliant; dead, they
are brittle and dry. Thus whoever is stiff and inflexible is a
disciple of death. Whoever is soft and yielding is a disciple of life.
The hard and stiff will be broken. The soft and supple will prevail.”

This is not the time to be stiff and inflexible, this is the time to
be soft and supple.

The Central Bank of Kenya lifted its moratorium on licensing of new
commercial banks, now it’s the turn of policy-makers to move with
despatch as well.

read more





"There will be a way There always is" Ian Craig @lewa_wildlife
Kenyan Economy


Interview with William Roberts @SirikoiLodge A Journey from lake
Baringo to @lewa_wildlife

https://www.youtube.com/watch?v=frQ-dPgvxCc&feature=youtu.be

@McKenzieCNN President of Kenya in his "commander in chief"
fatigues visiting troops in Somalia (handout photo)

https://twitter.com/McKenzieCNN/status/843135301916774401

read more



Kenya Shilling versus The Dollar Live ForexPros 102.925
Kenyan Economy


Nairobi All Share Bloomberg -5.05% 2017

http://www.BLOOMBERG.COM/quote/NSEASI:IND

126.61 +1.85 +1.48%

Nairobi ^NSE20 Bloomberg -6.36% 2017

http://j.mp/ajuMHJ

2,983.68 +18.37 +0.62%

Every Listed Share can be interrogated here

http://www.rich.co.ke/rcdata/nsestocks.php

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Kenyan oil firm KenolKobil to open 30 new stations this year Reuters
Kenyan Economy


"The story has not changed," David Ohana, the group's chief executive,
told Reuters in an interview on Thursday, saying the company wanted to
drive up volumes and focus on margins.

KenolKobil also operates in Ethiopia, Uganda, Rwanda, Burundi and
Zambia. Ohana said about 25 of the new stations will be in Kenya,
where the economy is expanding by more than 5 percent per year.

The company, which has a 15 percent market share in Kenya with 200
service stations, partners with individuals who hold long-term leases
on the sites.

"In terms of capital, it is nothing," Ohana, a former major in the
Israeli military who has lived in Africa for 15 years, said of the
planned stations.

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KenolKobil share price data here -14.38% 2017
Kenyan Economy


Par Value:                  0.50/-
Closing Price:           12.80
Total Shares Issued:          1471761200.00
Market Capitalization:        18,838,543,360
EPS:             1.64
PE:                 7.805

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N.S.E Today


The US Dollar has sold off for 4 consecutive sessions since we learnt
of the 25 basis points increase in the Fed Funds rate.
The FX Markets have run the likes of the South african Rand to 19
month highs and on the basis that the FED will occasionally bare its
fangs but is not going to bite hard.
The Bourse here in Nairobi has been on the mend, as Safaricom bounces
off egregiously oversold levels and the Banking segment [particularly
Tier 1] firms up since FY 16 Results turned out better than expected
[expectations had become extreme]
The Nairobi All Share rallied +0.59 points to close at 127.20 an 11
week closing High.
The Nairobi NSE20 Index firmed +7.02 points to close at 2990.70 a 3 week high.



N.S.E Equities - Commercial & Services


Safaricom was the most actively traded share at the Exchange and
firmed +0.28% to close at 18.00 and traded 12.692m shares worth
228.463m. Safaricom remains in oversold territory at -6.00% in 2017.

Kenya Airways has applied for direct flights to JFK Airport in the US
starting May [Business Daily]. Kenya Airways eased -0.9% to close at
5.50 and traded 532,700 shares.

TPS Serena Hotels rallied +4.49% to close at 23.25 and is +13.414% in
2017 as Investors bet on a still ''gentle'' Tourism rebound.



N.S.E Equities - Finance & Investment


Barclays Bank rallied +1.714% to close at a 1 week high of 8.90 on
heavy-duty volume action of 10.109m shares worth 89.976m. Barclays
Bank is underpinned by a Final dividend of 80cents a share which is
worth 8.988%.
KCB Group surged +5% to close at 31.50 which is a Fresh 2017 High. KCB
is +9.56% in 2017 and is throwing in a Final Dividend worth 9.52%.
COOP Bank ticked -0.709% lower to close at 14.00 [following on the
previous sessions stellar +9.3% gain. COOP traded 5.089m shares and is
+6.06% in 2017.
Equity rallied +2.61% to close at 29.50 and traded 445,500 shares.
Equity announced a boardroom transition.

''Equity Group Holdings Limited (EGHL) has taken a hard look at its
operating model in response to a stifling interest rate cap regime,
shifting consumer preferences and rising competitive threats in what
is seen as a way of adjusting to a new era, through a boardroom
transition''



N.S.E Equities - Industrial & Allied


Kenya Power responded to a report in the Standard on Sunday which said
that ''an internal audit showed about one million of the connections
from the 3.6 million new customers could be fake or have never been
topped up'' Kenya Power said
1. The report by @StandardKenya yesterday was based on an interim
Internal Report on Connectivity #LastMile
2. However, the interim report is on Zero Vend and not Connectivity -
Dr Ken Tarus, MD and CEO, @KenyaPower #LastMile
3. Zero Vend is a technical term that refers to a pre-paid meter that
has not vended upon exhaustion of pre-loaded units #LastMile
KPLC which had already retreated -20.245% through 2017 and was trading
on a P/E Ratio of 1.68 signalling the market had already sensed
challenges, eased -0.55% to close at 6.45.

KenGen closed unchanged at 6.55 and PIC SA has underwritten the price
right here at +12.93% in 2017.



by Aly Khan Satchu (www.rich.co.ke)
 
 
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March 2017
 
 
 
 
 
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