The GROUP of 5 : Kenya's Top Multinational Companies [Archive]

Kisumu Ndogo

October 2nd, 2009, 10:56 AM

http://t3.gstatic.com/images?q=tbn:LxSLSM48dkEdIM:http://www.koinangestreetcarnival.com/images/Nakumatt.jpg

NAKUMATT LOCATION'S(NAMES) IN KENYA
Nakumatt JUNCTION
Nakumatt MEGA
Nakumatt DOWNTOWN
Nakumatt PRESTIGE
Nakumatt LIKONI
Nakumatt UKAY
Nakumatt WESTGATE
Nakumatt VILLAGE
Nakumatt KAREN
Nakumatt EMBAKASI
Nakumatt LIFESTYLE
Nakumatt THIKA RD
Nakumatt HIGHRIDGE
Nakumatt NYALI
Nakumatt MERU
Nakumatt KISII
Nakumatt ELDORET
Nakumatt KSM City
Nakumatt KSM Nyanza

FUNNY NAKUMATT VIDEO CLIP
K2JPuZcfrYE

Ninth in continental ranking roll by planet retail analysts, Nakumatt ranked among the top Global Retailers
Leading local supermarket chain Nakumatt Holdings has been ranked 25th in the just released Planet Retail Africa and Middle East top 30 retailers' 2007 overall rankings.Owing to strong results for its African retail formats, South African retail giant Shoprite with 1,254 branches continues to lead the 2007 Top 30 rankings.

On the African rankings, Nakumatt Holdings has entered the top ten Africa retailers' league at position nine.The annual report released by retail research and strategy power house Planet Retail group ranks Nakumatt Holdings at position 25 with retail banner sales of US$350million for the year 2007.

In the report titled: Africa and Middles East Rankings: All set to make the difference, Planet Retail Analyst Ghai explains that the year (2007) saw retailers launch a plethora of new formats, announce ambitious expansion plans and carry out a number of market entries and exits.

Planet Retail is the leading provider of intelligence on the global retail and foodservice industries, monitoring more than 5,000 "banner" operations as well as market developments in 211 countries. In its AME rankings, Nakumatt Holdings beat Abu Dhabi Co-op of UAE, Germany's Metro Group South Africa's Fruit & Veg City, Farm and Al Sadhan both from Saudi Arabia.

The ranking by Planet Retail confirms that Nakumatt Holdings has continued to maintain the slot it achieved in the 2006 ranking despite stiff competition from South African and Gulf region retail players. In its citation for Nakumatt's ranking, Planet Retail forecasts that, Nakumatt will enhance its ranking this year due to increased sales in new markets such as Rwanda.

Speaking moments after receiving the ranking communiqué, Nakumatt Holdings Operations Director Mr Thiagarajan Ramamurthy described the ranking as yet another feather on Nakumatt's cap in the global retail market.

"The ranking by such an authoritative organization as Planet Retail confirms Nakumatt's world-class positioning and benchmark which has seen us significantly grow our customer footage to more than 10% up from 7% last year," Ramamurthy said.

And added: "The ranking is yet another feather on our cap and one that firmly places Kenya high on the global retail market roll of honour thanks to our customers, staff and suppliers."

Planet Retail's analyst for Sub-Saharan Africa, Mr. Mathew Mue predicts that large and well established South African retailers will also continue to dominate the continental ranking while Nakumatt continues to service the East Africa sub-regional market.

"Continentally, we expect the large and well established South African retailers to continue the lead especially in the southern and western part of the continent, but we strongly forecast that Nakumatt will keep the lead and domination in Eastern Africa, including the islands," Mue explained.

And added: "From our analysis, the Nakumatt brand is already a household name in the sub-region and is associated with success which is such a strong brand value."

In the report published by Planet Retail Analyst, Mr. Manu Ghai, South African retailers continue to lead the Africa & Middle East (AME) rankings for 2007, with France based Carrefour squeezing in to secure its position in sixth place.

Besides the top ranking, Planet Retail has also singled out Nakumatt Holdings strategic direction receiving an accolade for trail blazing financial services and its new popular 24 hour shopping concept.

The report notes that a majority of retail companies in the AME region are family-owned businesses and are pursuing ambitious expansion plans as they raise capital through IPOs. "Saudi Arabia-based Al Othaim has achieved IPO ownership and is aiming to plough funds into new stores across the kingdom," Ghai notes in the report.

And adds: "These retailers are also beginning to offer financial services to lure in consumers. "This last strategy extends to the African continent where Kenyan retailer Nakumatt has an ambitious expansion strategy for East Africa and has partnered with financial institutions to offer customers credit cards and cash back facilities."

To further improve its presence in the region, top ranked South African chain Shoprite has earmarked US$80 million to set up supermarkets in the Central African Republic and the Democratic Republic of the Congo.

In addition, the retailer is looking to open a second store in Nigeria and expand into West Africa. As of now, Shoprite operates through a network of around 1,254 stores across 17 countries with a strong presence in South Africa which contributes to more than 90% of its sales.

With a wide presence across the region, the company has been able to strategically position itself as a one-stop solution, catering to middle and lower income groups alike. In addition, the company is in the midst of repositioning its Checkers stores as a high-end format.

With the South African retailers continuing to lead this year's rankings, the Planet Retail report notes that French hypermarket operators, Carrefour and Casino, have made considerable investments into the Middle East.

Both companies have spread their retail operations across Saudi Arabia, United Arab Emirates (UAE) and other Middle Eastern countries with their respective franchise partners.

Carrefour already operates in North African countries while Casino is currently present with its franchised banners in markets ranging from Morocco to Comoros and Benin.

Source: coastweek.com
Publication date: 9/22/2008

Kisumu Ndogo

October 4th, 2009, 12:39 AM

Nakumatt lines up equity funds for expansion capital

By Washington Gikunju
Posted Sunday, July 12 2009 at 19:02

Nakumatt Nyali -Mombasa
http://standinaqueue.files.wordpress.com/2007/07/dsc00710.jpg
Regional retail chain Nakumatt Supermarkets is in talks with two foreign investors that could see shareholders cede a minority stake to a new strategic partner, who is expected to inject additional capital into the business.

Though the process is still at the negotiation stage, the new partner is expected to provide about Sh2 billion (between $20 million to $25 million) to improve the retail store’s cash flow position and finance the ongoing branch expansion plan.

In an interview with Business Daily, Nakumatt managing director and majority shareholder, Mr Atul Shah, confirmed being in talks with at least two international investors who are interested in buying a stake in the firm.

Mr Shah said capital expenditure on branch expansion had stretched Nakumatt’s working capital to the limit, hence the need to introduce new equity into the firm.

He, however, declined to reveal the names of the investors, saying doing so would jeopardise the ongoing discussions.

“We are in talks with two foreign investors who are interested in coming on board. I, however, cannot reveal who they are because when there are two horses in a race you do not want to jeorpadise any of them,” said Mr Shah on Friday.

There has been speculation that Nakumatt was in negotiations with “an international private equity group” based in South Africa. Other sources have intimated that Nakumatt has also been in talks with Kingdom Holding Company (KHC) — an investment group that is associated with the Saudi Arabia royal family.

Our efforts to contact KHC for comment on the matter were unsuccessful.

The two principal shareholders of the region’s biggest supermarket (by branch network) — Mr Shah and Kilome Member of Parliament, Mr Harun Mwau — are said to be willing to give up between 25 and 30 per cent of their stake in exchange for a cash injection to help realise their dream of making Nakumatt the region’s leading retail brand.

“The proportion of shares that the new partner will hold is dependent on ongoing valuations of the business,” said Mr Shah.

The Nakumatt MD said a strategic partner would provide a long term source of capital, other than the current debt financing which is eating into the chain’s cash flow at a time when profit margins and revenues are squeezed by softening consumer demand and cutthroat competition.

The preference for equity capital has also seen Nakumatt shelve plans to float a Sh800 million commercial paper despite having selected transaction advisors and sending out investment proposals to a select group of prospective institutional investors...

Infor: http://www.businessdailyafrica.com/-/539552/623068/-/568pbm/-/index.html

Kisumu Ndogo

October 4th, 2009, 01:10 AM

http://t3.gstatic.com/images?q=tbn:LxSLSM48dkEdIM:http://www.koinangestreetcarnival.com/images/Nakumatt.jpg

Nakumatt Pictorials

Nairobi
Nairobi -LIFESTYLE
http://www.nakumatt.net/images/Lifestyle.JPG

Nairobi -UKAY
http://www.nakumatt.net/images/ukay.jpg

Nairobi -HIGHRIDGE
http://www.nakumatt.net/images/highridge.jpg

Nairobi -JUNCTION
http://www.nakumatt.net/images/junction.jpg

Nairobi -KAREN
http://www.nakumatt.net/images/karen.jpg

Nairobi -WESTGATE
http://www.nakumatt.net/images/westgate.jpg

Nairobi -NGONGROAD
http://www.nakumatt.net/images/ngongroad.jpg

Nairobi -MEGA
http://www.nakumatt.net/images/n_mega.jpg

Mombasa
Mombasa -LIKONI
http://www.nakumatt.net/images/3235.jpg

Mombasa -NYALI
http://www.nakumatt.net/images/nyali.jpg

Mombasa -CINEMAX
http://www.nakumatt.net/images/cinemax.jpg

Kisumu
Kisumu -MEGA CITY
http://www.nakumatt.net/images/mega.jpg

Kisumu NYANZA
?

Kisii
Kisii -KISII
http://www.nakumatt.net/images/kisii.jpg

Eldoret
Eldoret -HOUSEHOLD
http://www.nakumatt.net/images/household.jpg

Meru
Meru -MERU
http://www.nakumatt.net/images/meru.jpg

Rwanda
Kigali -CITY CENTRE
http://www.nakumatt.net/images/rwanda.jpg

Uganda
Kampala -
?

Kenguy

October 4th, 2009, 10:02 PM

Rumour has it that Tuskys and Nakumatt are linked somehow. Its strange that when you miss an item in Nakumatt they will refer you to Tuskys and vice versa.

Kisumu Ndogo

October 14th, 2009, 08:17 AM

Rumour has it that Tuskys and Nakumatt are linked somehow. Its strange that when you miss an item in Nakumatt they will refer you to Tuskys and vice versa.

I guess they are probably gaming Uchumi out of the Market.

NEXT COMPANY Kenya Airways (KQ)...
http://www.visitzambia.co.zm/var/ezwebin_site/storage/images/media/images/kenya_airways_flight/89390-1-eng-GB/kenya_airways_flight_imagelarge.jpg

sleekpiano

October 14th, 2009, 12:26 PM

Rumour has it that Tuskys and Nakumatt are linked somehow. Its strange that when you miss an item in Nakumatt they will refer you to Tuskys and vice versa.

Not at all. The only common thing is they both started in Nakuru. But Nakumatt is owned by Indians and Tuskys by Kikuyus (specifically Christian Wakorinos). Infact that is why they changed their name from Tusker Mattresses to Tuskys to remove that the notion they are connected.

Have you wondered why you can't get to buy Beer or Rubber from Tuskys and most of the time in their shops they play christian music in the background??

chui

October 15th, 2009, 10:33 AM

Rumour has it that Tuskys and Nakumatt are linked somehow. Its strange that when you miss an item in Nakumatt they will refer you to Tuskys and vice versa.

No, I don't think they are linked in any way. What I suspect is that Kenyans being generally friendly and helpful, will refer you to where you will most likely get an item when you miss it where you are shopping.

A good example is when you miss fuel at a Total petrol station, the staff may tell you to check at the Shell petrol station across the street.

Kisumu Ndogo

October 16th, 2009, 01:53 AM

No, I don't think they are linked in any way. What I suspect is that Kenyans being generally friendly and helpful, will refer you to where you will most likely get an item when you miss it where you are shopping.

A good example is when you miss fuel at a Total petrol station, the staff may tell you to check at the Shell petrol station across the street.

Intresting insight, but how comes they do not refer those customers to Uchumi according to Kenguy's assertion, me still thinks its a case of Privately Owned Enterprises ganging against Government backed Uchumi.

Kisumu Ndogo

October 19th, 2009, 05:37 PM

http://www.kenya-airways.com/home/images/kq_logo.jpg

ABOUT KQ -Kenya Airways

Founded 1977
Hubs Jomo Kenyatta International Airport
Focus cities Moi International Airport
Frequent flyer program Flying Blue
Member lounge Simba Lounge
Alliance SkyTeam (associate)
Fleet size 25 (+10 orders, 5 options)
Destinations 46
Company slogan "The Pride of Africa"
Headquarters Nairobi, Kenya

As at Oct 09
Key people Titus Naikuni (CEO)
Alex Mbugua (CFO)
Evanson Mwaniki (Chairman)
Website http://www.kenya-airways.com

Kenya Airways is the flag carrier airline of Kenya, based in Nairobi. It started operations on 4 February 1977, and operates scheduled services throughout Africa and to Europe and the Indian subcontinent, with its main base at Jomo Kenyatta International Airport, Nairobi.[1] Moi International Airport in Mombasa serves as a focus city.

Kenya Airways B777-200Er
http://upload.wikimedia.org/wikipedia/commons/thumb/4/4a/Kenya.airways.b777-200er.5y-kyz.arp.jpg/800px-Kenya.airways.b777-200er.5y-kyz.arp.jpg

FLEET CONSISTS
Boeing 777-200ER
Boeing 767-300ER
Boeing 737-800
Boeing 737-700
Boeing 737-300

CALAMITIES
5 Incidents and accidents

HISTORY
The airline was established in February 1977, after the break-up of the East African Community and the consequent demise of East African Airways[2] and was wholly owned by the Kenyan government until April 1996.

In 1986, Sessional Paper Number 1 was published by Kenya's government, outlining the country's need for economic development and growth. The document stressed the government opinion that the airline would be better off if owned by private interests, thus resulting in the first attempt to privatise the airline. The government named Mr Philip Ndegwa as Chairman of the Board in 1991, with specific orders to privatise the airline. He heads a renewed company cabinet. In 1992, the Public Enterprise Reform paper was published, giving Kenya Airways priority among national companies in Kenya to be privatized.

Boeing 767 in the pre-2005 paint scheme.In the fiscal year 1993 to 1994, the airline produced its first profit since the start of commercialization. Also, in 1994, the International Finance Corporation (IFC), was appointed to provide assistance in the privatization process. In 1995, Kenya Airways restructured its debts and a made a master corporation agreement with KLM that bought 26% of the shares in Kenya Airways and became the largest single shareholder. In 1996, shares were floated to the public, and the airline started trading on the Nairobi Stock Exchange. In October 2004, the company cross-listed its shares at the Dar-es-Salaam Stock Exchange. In April 2004, the company re-introduced Kenya Airways Cargo as a brand and in July 2004, the company's domestic subsidiary Flamingo Airlines was re-absorbed.

In 2005, Kenya Airways changed its livery. The four stripes running the length of the fuselage were replaced by the slogan "Pride of Africa". The KA tail logo was replaced by a styled "K" encircled with a "Q" to evoke the "KQ" call letters for the airline. In the 6 months ending 30 September 2005, profits after tax rose 48% vs 2004-5 to Kshs 2.231 Billion (US$30 Million) and over 1.2 million passengers were carried.

In the 6 months ending 30 September 2004, profit after tax was $19.5 million, compared to $4.5 million for the same period the previous year. This has been attributed to KTAP (Kenya Airways TurnAround Project) overhauling the airline's revenue management, cost structures and route and fleet planning.

Performance
In the full-year results ending 31 March 2005, profits after tax almost tripled over 2003-4 to Kshs 3.882 Billion (US$50 Million) and over 2 million passengers were carried.

Kenya Airways announced record profit growth for 2005-06. After-tax profits increased from 3.88 billion Kenya shillings (about $54 million USD) to 4.83 billion shillings. In March 2006, Kenya Airways won the 'African Airline of the Year' Award for 2005, for the fifth time in seven years.[

Passenger numbers in the fiscal year 2006 (April 2006 – March 2007) were a record 2.6 million. On September 4, 2007, SkyTeam, the second-largest airline alliance in the world, welcomed Kenya Airways as one of the first official SkyTeam Associate Airlines.[7]

SHAREHOLDERS
The airline is owned by individual Kenyan shareholders (30.94%)
KLM (now Air France-KLM) (26%)
Kenyan government (23%)
Kenyan institutional investors (14.2%)
Foreign institutional investors (4.47%) and
Individual foreign investors (1.39%).

STAFF
It has 2,408 employees (at March 2007). Kenya Airways also owns 49% of Precision Air in Tanzania.[1]

Infor: Wiki

Kisumu Ndogo

October 19th, 2009, 06:01 PM

http://www.airlineroutemaps.com/Africa/img/Kenya_Airways.gif

Other Subsidiary
http://t1.gstatic.com/images?q=tbn:Q67J223yjOVqYM:http://www.kenya-airways.com/home/kqcargo/images/cargo_logo.jpg

Cameroon air disaster as highlighted in Chinnese Media
http://english.cri.cn/mmsource/images/2007/05/06/56-4491-20.jpg

HUBS Jommo Kenyatta International Airport -Nairobi(Current & New Renders)

http://www.nairobiairporttransfers.com/images/kenyatta-airport-nairobi.jpg
http://www.airport-technology.com/projects/jomo-kenyatta/images/4-jomo-kenyatta.jpg

TRAFFIC
Jomo Kenyatta International Airport, (IATA: NBO, ICAO: HKJK) formerly called Embakasi Airport and Nairobi International Airport, is Kenya's largest aviation facility, and the busiest airport in Eastern Africa. It is the 6th busiest airport in Africa. The airport is named after the first Kenyan prime minister and president Jomo Kenyatta.

The airport served 4,861,706 passengers in 2007.[1]

KENYA AIRWAYS HOSTESS
http://www.nation.co.ke/image/view/-/643216/highRes/94810/-/maxw/600/-/90ql3m/-/DNNAIROBISTRIKE1508BB.jpg

http://t3.gstatic.com/images?q=tbn:OUlTyLOxFoLOsM:http://www.kenyaair.net/kq4/uploadedImages/Global_Website/Information_and_Services/Your_Trip/On_Board/In-flight_Entertainment/Msafiri_Magazine/msafiri_57.jpg
Inflight Magazine

desert burner

October 24th, 2009, 04:50 AM

KenolKobil Ltd has been rewarded by the Kenya Revenue Authority for posting the most improved percentage growth in corporation tax payment in the country.

The company says this growth is due to increased profits for the 2007/2008 versus 2008/2009 year.

This is the third year the company has been recognised as a top taxpayer, having been recognised as overall second top taxpayer in 2004 and third best in 2005.

The company recently announced it had acquired Engen’s assets in Burundi, where it has a new subsidiary.

Kisumu Ndogo

November 9th, 2009, 12:40 AM

Interesting to see the rate at which Kenya airways is opening new routes especially in Central|South & West at this rate they should be able to put off the competition. Ethiopian airways that recently started direct routes to Mombasa better watch out, and so is SAA.

http://www.worldairroutes.com/images/Kenya_Cover_000.jpg
http://www.anna.aero/wp-content/uploads/2009/09/kenya-airways.jpg

Yoniii

November 17th, 2009, 05:37 PM

Ethiopian airways that recently started direct routes to Mombasa better watch out, and so is SAA.
Good news! Bring it on Kenya! :D

Ethiopians current international destinations:

Europe (6): Brussels, Frankfurt, London, Paris, Rome, Stockholm.

Africa (35): Abidjan, Abuja, Accra, Addis Ababa, Bamako, Brazzaville, Bujumbura, Cairo, Dakar, Dar es Salaam, Dire Dawa, Djibouti, Douala, Entebbe, Harare, Johannesburg, Juba, Khartoum, Kigali, Kilimanjaro, Kinshasa, Lagos, Libreville, Lilongwe, Lome, Luanda, Lubumbashi, Lusaka, Malabo, Mombasa, Monrovia, Ouagadougou, N’Djamena, Nairobi, Zanzibar.

The Middle East & Asia (14): Bahrain, Bangkok, Beijing, Beirut, Dubai, Guangzhou, Hong Kong, Jeddah, Kuwait, Mumbai, Delhi, Riyadh, Sana’a, and Tel Aviv.

North America (1): Washington

Kisumu Ndogo

November 18th, 2009, 05:20 PM

http://t3.gstatic.com/images?q=tbn:hPU3LhOXN5aW2M:http://blogs.reuters.com/wp-content/uploads/2007/05/CEO.jpg
CEO Titus N.

OK lets see how it compares;

KQ Current international destinations:

Europe (3): Amsterdam, London, Paris, Rome*, Stockholm*, Frankfurt*.

Africa (45): Abidjan, Antananarivo, Accra, Addis Ababa, Bamako, Brazzaville, Bujumbura, Benin, Bangui, Cairo, Dakar, Dar es Salaam, Djibouti, Douala, Entebbe, Equitorial Guinea, Gaberone, Harare, Johannesburg, Juba, Khartoum, Kigali, Kilimanjaro, Kisangani, Kinshasa, Kisumu, Lagos, Libreville, Lilongwe, Lome, Luanda, Lubumbashi, Lusaka, Malabo, Mayote, Maputo, Mombasa, Monrovia, Malindi, N’Djamena, Ndola, Nairobi, Seychelles, Younde, Zanzibar. Luanda* Capetown*

The Middle East & Asia (5):Bangkok, Dubai, Guangzhou, Hong Kong, Mumbai, Istanbul*, Karachi*, Seoul*

North America: 0 Atlanta*

In Africa KQ beats Ethiopian Airways hands down internationally they have some catching up to do especially with Asia and the ever elusive North American Routes.

Note: Routes with (* not counted) Are either former or planned routes.

Next Company.. Kenol Kobil.
http://t0.gstatic.com/images?q=tbn:_Eqs6IwKh7daHM:http://4.bp.blogspot.com/_cq5lWC67EgY/SmjL2FvBo5I/AAAAAAAAAbU/dMdzbtiodnA/s320/kenol_logo.gifhttp://t2.gstatic.com/images?q=tbn:wa7CWzK83uTurM:http://1.bp.blogspot.com/_cq5lWC67EgY/SmjL_ePhjLI/AAAAAAAAAbc/A1dy3RbI59Y/s320/kobil_logo.gif

desert burner

November 23rd, 2009, 10:24 AM

http://www.businessdailyafrica.com/Company%20Industry/-/539550/802190/-/t74tdmz/-/index.html

desert burner

December 16th, 2009, 04:16 AM

http://www.businessdailyafrica.com/Company%20Industry/-/539550/823178/-/t5v2bdz/-/index.html

Kisumu Ndogo

December 25th, 2009, 01:17 AM

http://www.kenolkobil.com/home/images/1W_Trading.gif
http://www.kenolkobil.com/home/images/2W_Corporate.gif
http://www.kenolkobil.com/home/images/4W_Stations.gif

Kenol/Kobil appoints new directors to drive expansion strategy

http://www.businessdailyafrica.com/image/view/-/641916/highRes/90148/-/maxw/600/-/e2pfnbz/-/Kobil.jpg
In a strategic move meant to consolidate the company’s position as the leading player in Africa’s down and midstream oil market, Kenol/Kobil has appointed new members to its board. “The appointments are meant to enhance good corporate governance as a precursor to wealth creation for the company and the shareholders,” said the company’s head of subsidiaries and international sales, Patrick Kondo.

“Good corporate governance is infused from outside. This is what we want to achieve,” he added. In addition, the company aims to strengthen its position in LPG, aviation, lubricants and bitumen segments in the region, according to Mr Kondo. These market segments have been “abandoned” by multinational oil companies to concentrate on the lucrative upstream market, which involves production and exploration. Currently, crude oil is trading at $81 per barrel. The same multinationals are heading to Asia, especially China, where demand for oil has been phenomenal in the past decade.

Recently, the board appointed Terry Davidson, the former chief executive officer of Kenya Commercial Bank, as a non-executive director. His appointment came shortly after the engagement of another three directors — Bob Patterson, former chief executive of Mobil Oil Kenya, Desterio Oyatsi, an advocate of the High Court of Kenya, and Per Nils Vilhelm Jacobsson, the managing director of two major family property companies with investments in Stockholm and other Nordic countries.

Kenol/Kobil has been enhancing its competitive position in Africa and is currently a formidable player in Kenya, Uganda, Tanzania, Zambia, Rwanda and Ethiopia, where it has vast business interests and investments, said Mr Kondo. “We are enhancing our investment strategies with the aim of venturing into other strategic markets in Africa through investment in the service stations network, LPG facilities, export to counties in the region and bulk trading,” he said.

During his tenure at KCB, Mr Davidson engineered a major turnaround that saw the bank move from a loss-making enterprise to a significant profit-making public enterprise. “Mr Davidson brings to the board his vast financial management and investment experience, which will be instrumental in the company’s expansion strategy in Africa and continuous improvement of profitability and shareholder value,” said Mr Kondo.
While Mr Oyatsi brings to the board his legal and commercial expertise and experience, Mr Jacobsson brings experience in property development and management, combined with past experience in the downstream oil industry in Africa.

Kenol/Kobil group has expanded considerably over the past eight years in Africa through acquisitions. The group’s subsidiaries include Kobil Uganda, Kobil Tanzania, Kobil Zambia, Kobil Rwanda and Kobil Ethiopia.
In Kenya, where the corporate office is located, it is the market leader with a 23.78 per cent share of the oil market followed by Kenya Shell with 21.04 per cent. Total and Chevron have 17.94 per cent and 15.26 per cent respectively, according to the Petroleum Institute of East Africa. Libya Oil Kenya Ltd — formerly Tamoil — which took over the Mobil business in Kenya, has 7.33 per cent, with local companies controlling the remaining 14.6 per cent.

This year alone, the company has invested heavily in acquisition and development of strategic service stations in Ethiopia, Kenya, Tanzania, Uganda and Zambia. In addition, it has signed key agreements in Rwanda and Ethiopia, acquiring over 90 service stations. Just four years after it ventured into Rwanda, the company has been recognised as the country’s top taxpayer in the petroleum industry. The recognition followed the company’s acquisition of the entire assets of Shell in the country, as a going concern, making Kobil Rwanda the largest oil company operating the largest depot. The company was for the second year in a row among the three top taxpayers in Kenya.

Kisumu Ndogo

December 25th, 2009, 01:35 AM

African Expansion
http://www.kenolkobil.com/home/images/Map%20page%20.jpg

Current Branches
Kenya
Uganda
Tanzania
Ethiopia
Rwanda
Burundi
Zambia
Zimbabwe
...More To come Sudan, DRC, Mozambique

Engen, Kenol/Kobil to acquire Zimbabwean infrastructure
Tue, 15 Sep 2009 12:18
TradeInvestAfrica staff
Engen and Kenol/Kobil are to jointly acquire Shell and BP’s Zimbabwean infrastructure, reports bizcommunity.com. The deal will see Engen and Kenol/Kobil taking over 75 service stations and several depots located across the country. The stations and depots were previously run by BP under both the BP and Shell brands.

Rashid Yusuf, CEO and managing director of Engen says that the purchase re-affirms Engen’s confidence in Zimbabwe’s future. The investment is subject to approval by the Zimbabwean government. South African petroleum company Engen and Kenyan oil marketing company Kenol/Kobil are cooperating in several other ventures around the continent.

Kenol Kobil expands into Zambia, acquires Lublend ….
July 06, 2008 By: brainsplus Category: Blogroll

By PHILIP NGUNJIRI
Special Correspondent

Kobil Zambia, a fully-owned subsidiary of the Kenyan oil company, Kenol Kobil Group, has acquired a 15 per cent shareholding of Lublend Ltd. The company acquired the shareholding from Total Zambia Ltd. The venture is aimed at expanding the group’s regional presence and improving on supply chain logistics, market share and profitability. Lublend is a lubricants blending plant in Ndola, in the copper belt region of Zambia.

The new acquisition, according to head of corporate affairs Edwin Kinyua, will enable the company to beef up its lubricants blending and supplies within the mineral-rich region. The plant will boost Kobil’s lubricant supplies within the export markets of the Democratic Republic of Congo (the Lubumbashi area), Zimbabwe, Malawi and Mozambique, and will provide the group with the capacity to service the region’s potential, said Mr Kinyua.

Prior to the acquisition, Kenol Kobil was blending all its lubricant supplies for Kenya and the subsidiaries — except Kobil Tanzania — in Mombasa, and distributing them using trucks. The acquisition is expected to reduce operational costs, and distributing lubricants to customers. The acquisition will also reduce operational pressure on the Changamwe-based lubricants blending plant, which will now concentrate on the growing Kenyan oil market and that of the landlocked countries in the region.

Kobil Zambia Ltd has also signed a long-term fuel supply agreement with one of the largest and newest multinational mining companies in Zambia, Albidon Mining Ltd. Albidon is currently in the final stages of its site construction, and will be mining nickel in the southern region of Zambia for export.

Preliminary mining activities have started and Kobil has commenced supplies of low sulphur diesel to Albidon. The annual supply to Albidon will be between 2,800 and 3,000 cubic metres of low sulphur diesel. These new ventures are part of an aggressive plan by Kobil Zambia to penetrate the mining sector in Zambia, which has for long been dominated by the traditional multinational oil companies, with their parent companies mostly in US and Europe.

The mining sector in Zambia and the Southern African region has been registering impressive growth due to favourable metal prices in the international market. In its expansion plans, Kenol acquired its trading partner, Kobil Petroleum Ltd and incorporated Kobil Ethiopia at the beginning of the year. Prior to the approval of the acquisition, Kenol and Kobil were operating under a joint operation agreement.

Kenol being a public listed company means that the acquisition of Kobil, a player with a robust performance record, was expected to contribute substantially to the company’s bottom line.

It was also expected that the company, now with a larger asset base, would negotiate more favourable borrowing terms from banks, which will allow it to tap other sources of finance. In addition, it was expected that the company will have more negotiating power with overseas oil producers, and manufacturers of essential products such as base oils for the manufacture of lubricants.

In spite of the challenges, the company’s earnings from sales volumes increased by 52 per cent, with 27 per cent from Kobil and the balance resulting from expansion in Kenya and the region. Gross margins increased by 48 per cent, with Kobil contributing 36 per cent.

Between October 2007 and March this year, the oil industry has been hit by steep increases in oil prices, reaching unprecedented record levels and extremely high prevailing freight-on-board premiums and sea freight. Supply constraints arising mainly from pipeline and POOR storage poor capacity did not spare the company.

This has been compounded by the indirect tax increases in some subsidiaries and the up-front payment system in Kenya and Tanzania, as well as non-recoverable value added taxes in Tanzania new stocks management system introduced by the Kenya Revenue Authority and aggressive competition.

Distribution costs increased by 199 per cent with Kobil contributing 64 per cent of the increase, due to Kenol/Kobil Group continuing to engage in alternative distribution solutions to road transport from Mombasa to various destinations in Kenya and neighbouring countries, and from Tanzania to Rwanda, Burundi and Uganda.n The oil industry expects high oil prices and distribution constraints in the region to prevail for sometime.

Kisumu Ndogo

February 12th, 2010, 07:54 PM

Next Company KCB (Kenya Commercial Bank).
http://www.denny.co.uk/denny/images/kcb.logo.jpg
http://www.nation.co.ke/image/view/-/495058/highRes/52598/-/maxw/600/-/arxfpj/-/PIX+3.jpg

COMING UP..

Kisumu Ndogo

February 23rd, 2010, 04:04 AM

Kenya Commercial Bank

ABOUT KCB
Type: Public
NSE :KCB
Founded 1896
Headquarters: Kencom House, Moi Avenue, Nairobi, Kenya
Key people Martin Oduor-Otieno, Chief Executive Officer
Industry Banking Products: Loans, credit cards, savings, investments, mortgages
Total assets: US$2 billion+ (2009)
Website http://www.kcbbankgroup.com/ke/index.php

Kenya Commercial Bank (KCB) is a financial services provider headquartered in Nairobi, Kenya. It is among the three largest commercial banks in Kenya with assets of more than US$2 billion. The other two are Barclays Bank of Kenya and Standard Chartered Bank of Kenya.

Shares of the stock of Kenya Commercial Bank Group (KCB Group), the parent company of Kenya Commercial Bank, are listed on the Nairobi Stock Exchange (NSE), under the symbol (KCB). The Group's stock is also cross listed on the Uganda Securities Exchange (USE).

Contents
1 Kenya Commercial Bank Group
2 History
3 Branch network
4 Officers & Management
5 Sports
6 External links
7 References

Kenya Commercial Bank Group
Kenya Commercial Bank is a member of the KCB Group of companies. These include:

Kenya Commercial Bank - Nairobi, Kenya
KCB Rwanda - Kigali, Rwanda
KCB Southern Sudan - Juba, Southern Sudan
KCB Tanzania - Dar es Salaam, Tanzania
KCB Uganda - Kampala, Uganda
KCB Foundation Limited - Nairobi, Kenya
KCB Sports Sponsorship Limited - Nairobi, Kenya
Savings & Loan Kenya Limited - Nairobi, Kenya

The KCB Group is the largest financial services group in East Africa, with an asset base estimated at over US$2.5 billion. As of March 2009, KCB Group has the widest network of banking outlets comprising of over 170 branches in Kenya, Rwanda, Southern Sudan and Tanzania.

\History
The history of Kenya Commercial Bank (KCB) dates back to 1896 when its predecessor, the National Bank of India opened an outlet in Mombasa. Eight years later in 1904, the bank extended its operations to Nairobi, which had become the headquarters of the expanding railway line to Uganda.

The next major change in the bank's history came in 1958. Grindlays Bank merged with the National Bank of India to form the National and Grindlays Bank. Upon Kenya's independence in 1963, the Government of Kenya acquired 60% shareholding in National & Grindlays Bank in an effort to bring banking closer to the majority of Kenyans. In 1970, the Government of Kenya acquired 100% ownership of the bank's shares to take full control of the largest commercial bank in Kenya. National and Grindlays Bank was renamed Kenya Commercial Bank. The Government has over the years reduced its shareholding in KCB to 23%, as of December 2008.

In 1972, Savings & Loan (Kenya) Limited was acquired to specialize in mortgage finance. In 1997, another subsidiary, Kenya Commercial Bank (Tanzania) Limited was incorporated in Dar es Salaam, Tanzania to provide banking services and promote cross-border trading.

In May 2006 KCB extended its operations to Southern Sudan following licensing by the Bank of Southern Sudan. In November, 2007, the first branch of KCB Uganda Limited opened in Kampala, Uganda following licensing by the Bank of Uganda. In 2008, KCB expanded to Rwanda, where the first branch opened in Kigali in December 2008. A subsidiary is expected to be opened in Burundi during 2009.[3][4]

Branch network
KCB has more than 150 branches throughout Kenya, making it the largest banking network in the region. It has the largest number of own-branded ATMs in Kenya. Since 2004 all of the branches in Kenya have been rebranded as part of a wider corporate branding exercise. KCB has partnered with Pesa Point to increase the number of ATM points customers can access their funds.

Officers & Management
P. W. Muthoka (Chairperson)
Martin Oduor-Otieno (CEO)

Sports
KCB owns a sports club, that has teams in Kenyan football, rugby, volleyball and basketball leagues. See Kenya Commercial Bank (sports club). Since 2003 Kenya Commercial Bank has been sponsoring the Safari Rally - East Africa Rally Championships ( which consists of the Kobil rally in Tanzania, Pearl of Africa in Uganda and the Safari Rally in Kenya) and the Kenya National Rally Championship which consists of 8 series through out the year.
Infor: Wikipedia

Kisumu Ndogo

February 23rd, 2010, 04:28 AM

KENCOM HOUSE -NAIROBI
http://www.nation.co.ke/image/view/-/519772/highRes/61227/-/maxw/600/-/cykgqi/-/kcb.jpg

Kenya's Largest Bank Spreads Its Wings in South Sudan
Kenya's biggest retail bank, Kenya Commercial Bank (KCB), has opened another branch in Rumbek in South Sudan, making it a double in less than a month as it moves to meet the immense demand for banking services in the vast region, bank officials said on Thursday.

Last month, KCB opened its first branch in Juba, the capital of the vast region, making history as the first international bank to set shop in Southern Sudan. The opening of operations in Juba ended speculation that the grand entry into vast region was facing problems and could be headed for failure, said KCB deputy chief executive officer Martin Oduor-Otieno. According to KCB deputy chief executive, business opportunities have sprung up in the bombed-out capital of South Sudan, increasing the demand for banking services. He said the delay was due to the need for the Bank of Southern Sudan to put its own modalities and facilitating instruments in place first before licensing commercial banks. Rumbek serves as the headquarters of the United Nations and various aid agencies working in southern Sudan and the economic activity seen there has been concentrated on the work of aid organizations. "KCB Sudan has two branches, in Juba and Rumbek and has plans to expand to other viable business centers of Southern Sudan such as Yei and Yambio in a short period of time to come," said Oduor- Otieno by telephone.

Oduor-Otieno also announced plans to open two more soon in remote western towns close to the border with the Democratic Republic of the Congo (DRC). "As part of this strategy, KCB is exploring the prospects of establishing other subsidiaries in Uganda, Rwanda and possibly, Burundi," he added. "This is very exciting news for us. It also marks a major step in our efforts to increase our footprint in the region and grow the KCB group business. With our presence in Tanzania where we installed a new managing director a few days ago and the licensing of KCB Sudan, we are set to become a major player in the regional banking scene," he said. Oduor-Otieno said the bank first ventured in the untapped market in May after receiving a license from the deputy governor of the Bank of Sudan, Elijah Malok Mayen, becoming the first international bank to be licensed to offer conventional banking services in the war ravaged Southern Sudan region. He said the bank is now set to become a major player in the regional banking industry following the commencement of its operations in Sudan last month. The KCB deputy chief executive admitted that there were many challenges to be overcome by the Kenyan giant due to the fragility of the legal and regulatory framework. "The process of setting up in southern Sudan was long and very challenging but we had the patience to pursue our dream.

We will continue to explore opportunities in the region as we see to increase our footprint in the Greater East Africa," said Oduor- Otieno "Southern Sudan has just come out a devastating war that has left the infrastructure completely destroyed and people desperate for support. We are prepared to partner with the people of Southern Sudan to begin the reconstruction process by availing necessary banking and financial services to them," he said. African firms including the international ones have been positioning themselves to exploit opportunities in southern Sudan, focusing on sectors as diverse as construction, oil, banking and farming, and hoping to share the billion of dollars pledged by donors. Kenya, which hosted peace talks that led to January's peace agreement, is particularly keen to beat South African rivals in the race for opportunities in southern Sudan and aims to build a railway to connect its neighbor to its Indian Ocean port city of Mombasa. "We have established two branches, one in Juba and the other in Rumbek. Juba has been operating for about a month and Rumbek for a slightly shorter time. The subsidiary is adequately capitalized and open for business," said KCB Chief Executive Terry Davidson.

"Our initial focus will be transactional banking, including basic cash management and foreign exchange. This is a big step for KCB and opens up an avenue into an exciting new frontier that we believe has great potential for our business and takes us towards an important goal of being the Best Bank in the Region," Davidson said on Tuesday while inaugurating the southern Sudan branch in Nairobi. The Kenyan indigenous bank, which already has another subsidiary in Tanzania, is now one of the only two banks operating from the region, the other being Nile Commercial. The bank officials acknowledged that the bank would face challenges in Southern Sudan especially due to the "fragility of the legal and regulatory framework." The bank's chairman Susan Mudhune acknowledged that services such as provision of loans would require time to develop modalities especially under conditions that would-be borrowers may not have collateral for loans. But Mudhune said KCB would spearhead the establishment of a modem financial system and infrastructure that would support the growth of the economy. "We also believe there are sufficient opportunities in Southern Sudan for us to grow our business through this expansion in order to increase shareholder value," she said. "The potential for growth in agriculture, manufacturing, mining and construction sectors is great and all players there would need a bank that would provide them with international quality service, " KCB chairman said. Oduor-Otieno said the Sudanese entry is part of KCB's ambitious expansion into the region. "Expect exciting times ahead for this bank. Our quest for increased regional presence would continue following this great breakthrough. We will continue to look at other markets in the region into which expansion is viable," he said.

"Payments and cash transmission as some of the key services we expect to be mostly required especially by development aid agencies and non-governmental organizations but all the other services that we offer in the KCB Group will be available our customers there," said KCB deputy Chief executive. Addressing investors during the celebrations to inaugurate KCB Sudan early this week, Trade Minister Dr. Mukhisa Kituyi asked local banks to open up branches in the region. "The potential there is enormous now that the bullets have stopped flying following a peace agreement between SPLM/A and the Khartoum government," Kituyi said. The minister encouraged regional banks to invest in the region before multinational banks got interested in tapping the vast resources in the area. KCB is Kenya's largest retail bank with branches spread throughout much of the country. The bank also has a subsidiary in Tanzania and plans to open branches in Uganda in 2006/07 and Rwanda in 2007/08. KCB's first quarter pre-tax profits jumped 85 percent to 733 million shillings (about 10.3 million U.S. dollars), driven by revenue growth.

desert burner

March 14th, 2010, 08:11 AM

Nakumatt Holdings has strengthened its position as market leader despite Uchumi Supermarket’s comeback.
By the end of tuesday this week, the supermarket chain will have opened four more branches after buying four others from Woolmatt Supermarkets.
Nakumatt’s total number of branches operating now are 25, making it the largest chain in sub-Saharan Africa.
Uchumi has also made a successful turnaround, and is also planning to open more branches as well as re-list at the Nairobi Stock Exchange.
"Nakumatt has invested more than Sh450 million in developing four ultramodern supermarkets and one hypermarket," Mr Atul Shah Nakumatt Holdings managing director said in a statement.
24-hour hypermarket
Nakumatt made a major milestone in its expansion strategy when it opened the three supermarkets — in Kakamega, Diani and Nanyuki. The retailer is scheduled to open a 24-hour hypermarket in Eldoret on Tuesday.
Apart from the four new branches, Nakumatt has also announced the acquisition of Woolmatt Supermarkets outlets in a strategy to enhance its presence in Nairobi’s Central Business District.
"The successive opening of the four branches by Nakumatt has served to further confirm the fact that its national expansion programme is still firmly on course," he said.
Nakumatt acquired four Woolmatt outlets at Sh400 million. The four branches will be remodelled to Nakumatt’s livery.
With an average store keeping unit range of more than 60,000 products, Nakumatt is enjoying a premium basket value return with more than 60,000 daily transactions against a 120,000 average daily traffic across branches.
The acquisition of Woolmatt is said to have been fuelled by customer demand and the restoration of the Nairobi’s Central Business District’s glory.
Remodelling
Already, Nakumatt is clearing Woolmatt’s stock at a 25 per cent discount ahead of remodelling and stocking. "As we await the conclusion of a financing arrangement with our potential private equity partners, we have reached a decision to open the four branches earlier to raise our branch network 25 before the end of the first quarter," Shah said.
The opening of Nakumatt Eldoret Hyper at Eldo Plaza puts Nakumatt 15 days ahead of its schedule in its first quarter targets.
Besides the first quarter branch expansion targets, the opening of Eldoret places the chain well on course to attaining its Vision 2010 goals which had outlined the opening of 30 branches by end of the year.
Mr Shah said the supermarkets’ national and regional expansion drive remains a key priority in their operating strategy.

http://www.standardmedia.co.ke/business/InsidePage.php?id=2000005632&cid=14&story=Nakumatt%20consolidates%20market%20leader%20position

desert burner

May 13th, 2010, 08:33 PM

By Luke Anami in Addis Ababa
Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000009339&cid=14&story=KQ%20to%20invest%20in%20own%20simulator#) Airways is set to invest in a multi-million pilot training devices by the end of this year, Captain Gachanja Githuku, KQ’s 767 fleet manager has said.
The training device, known as a simulator, will cost over Sh500 million and will see the Boieng 737 KQ pilots trained twice a year.
The simulator, which closely replicates actual flight conditions such as weatherhttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000009339&cid=14&story=KQ%20to%20invest%20in%20own%20simulator#), sound, day or night of the flight, is set to improve pilot training for KQ pilots and bring them in conformity with civil aviation requirements.
"Plans are underway to buy a 737 NG simulator for the training of pilots," said Mr Githuku.
He spoke to journalists Monday while taking them through a simulation training process in Addis Ababa, Ethiopia.
Githuku said pilots at KQ undergo more than ten stages of training. Part of those steps include simulator training which is mandatory.
The simulator training ensures pilots meet the minimum civil aviation requirements which include normal and non normal flight procedures.
Some of the procedures include traffic, engine failure, emergencies among others. "Pilots come to the simulator every six month. Simulation training sessions are held yearly in several simulators in Africa, Europe and the Middle East," he said.
Other venues
Currently, 84 pilots at KQ undergo simulation training in Ethiopia, South Africahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000009339&cid=14&story=KQ%20to%20invest%20in%20own%20simulator#), UK, Netherlands and Dubai.
Mr Githuku said KQ has not compromised its pilot training despite criticism following the release of technical report of Flight KQ 507 which was involved in accident shortly after take off from Duala, Cameroon three years ago.
He said air transport is a highly safe means of travel, and with technological advances having improved aircraft, navigation systems, and air traffic control, Kenya Airways will up its crew training programmes to meet international aviation standards.
The Kenya Airways team in Addis Ababa demonstrated its entire pilot training programme to journalists.

Kisumu Ndogo

June 2nd, 2010, 07:12 PM

KCB Tanzania To Open Its 11th Branch in Tanzania

http://www.businessdailyafrica.com/image/view/-/847064/medRes/128307/-/maxw/600/-/gqjy2u/-/kcb.jpg
KCB (Tanzania) Limited was incorporated in April 1997.

By Millicent Njeri / Press Release
Kenya Commercial Bank (KCB) Tanzania is set to open its 11th branch in the country as the bank positions itself to grow market share. Acting Managing Director, Jorum Kiarie, has announced that the bank will open a new outlet at Oysterbay, Dar-Es-Salaam next week, bringing to six the number of branches operated by East Africa’s largest bank, in the capital city.

“We want to position our operations close to our target market so as to tap into the vast potential in this country,” said Kiarie. He added that the KCB was setting the pace in the socio-economic integration of East Africa through its growing branch network and wide array of products and services suited for the business needs for cross-border entrepreneurs.

http://www.kcbbankgroup.com/ke/images/stories/KCB/internationalclassic.gifhttp://www.kcbbankgroup.com/ke/images/stories/KCB/kcbgold.gif
KCB currently has 10 branches in Tanzania; five in Dar-es-Salaam (Samora, Mlimani, Kariakoo, Uhuru and Msimbazi) with five other located in Moshi, Arusha, Morogoro, Zanzibar and Mwanza. “Our growing network demonstrates our commitment to reaching out to more people in this market and the desire to support the businesses of our customers in every part of East Africa,” said Kiarie.

KCB is the region’s largest commercial bank in asset base and branch network with over 200 outlets spread across Tanzania, Kenya, Uganda, Rwanda and Southern Sudan. Its asset base is in excess of Tshs3, 350 trillion giving it capacity to finance a wide range of needs in the region.

The vision of the KCB Group is to be the “… preferred financial solutions provider in Africa with a global reach…” and plans to ride on its regional network and modern information technology platform to penetrate the continent.
Source: http://csr.palsoftweblink.com/?c=117&a=1835

Kenguy

June 8th, 2010, 12:37 PM

http://www.businessdailyafrica.com/Company%20Industry/-/539550/823178/-/t5v2bdz/-/index.html

^^
Just noticing the way Nakumatt has started invading every major street in Nairobi's CBD. Im not sure whether they are trying to get back the CBD customers they lost since the fire tragedy at their supermarket or its just to give Tusky's a run for their money.

Kisumu Ndogo

September 5th, 2010, 10:21 PM

Next company East African Breweries(EABL)..

Kisumu Ndogo

September 18th, 2010, 04:20 AM

East African Breweries

http://upload.wikimedia.org/wikipedia/en/7/7f/EABLlogo.png

Location Nairobi, Kenya
Owner(s) Diageo Plc
Year opened 1922

Active beers

Tusker, Pilsner, White Cap, Allsops, Senator-Lager
Guinness -Stout
Uganda Waragi-Gin

http://t1.gstatic.com/images?q=tbn:PbGdMPOjuFHqcM:http://i.colnect.net/images/t/260/603/Tusker-Bia-Bora-Malt-Lager.jpghttp://t3.gstatic.com/images?q=tbn:QjlvWILWxoZoMM:http://i.colnect.net/images/f/260/599/Tusker.jpghttp://t3.gstatic.com/images?q=tbn:l0ArpLm_MBQ0TM:http://i.colnect.net/images/t/260/597/Pilsner-Lager.jpg

Kisumu Ndogo

September 18th, 2010, 04:27 AM

East African Breweries

East African Breweries Limited is a large East African brewing company which owns 80% of Kenya Breweries,98.2% of Uganda Breweries,100% of Central Glass - a glass manufacturer, 100% of Kenya Maltings and 46% of United Distillers and Vintners (Kenya) Limited, 100% of Universal Distilers Uganda, 100% EABL International (responsible for exporting),100% of East African Maltings, 100% EABL Foundation and 20% of Tanzania Breweries.

History

Kenya Breweries was founded in 1922 by two white settlers, George and Charles Hurst.The company is owned by the Dodd family of Kenya. By 1990, most of the shareholders were Kenyan and the company was very successful.

Tanzania Breweries had been started by Kenya Breweries in the 1930s. After being nationalized in 1967, Tanzania Breweries was poorly managed. However, in 1993 the Tanzanian government entered into a joint venture with South African Breweries Limited to run Tanzania Breweries. South African Breweries is one of the largest and most efficient brewing companies in the world. They turned Tanzania Breweries around with extraordinary speed, almost tripling production in the space of three years.

In 2002 East African Breweries Limited (EABL) and SABMiller Plc. effected a share swap of their interests in their subsidiaries: Kenya Breweries Limited and Tanzania Breweries Limited. EABL acquired 20% of the equity of Tanzania Breweries. SABMiller Plc. acquired a 20% equity stake in Kenya Breweries.

The partnership between EABL and SAB Miller in Tanzania went through turbulence in 2009, EABL claiming breach of contract by Tanzania Breweries (TBL) that led to low quality of EABL’s drinks that were produced by TBL and restriction of some of Diageo’s and EABL brands to enter the Tanzanian market. This lead to EABL’s planned acquisition of 51% of Serengeti Breweries Limited (SBL) and exit from TBL’s shareholder structure. SAB Miller still holds 20% in Kenya Breweries.
In 2003, Kenya Breweries consumed almost 6 % of the Nairobi water supply.

Ownership and Listing

The largest shareholder is Diageo Plc. EABL's primary listing is on the Nairobi Stock Exchange, and is cross-listed on the Uganda Securities Exchange and Dar-es-Salaam Stock Exchanges.

Products

Bottle of Tusker beer.Tusker is the main brand of East African Breweries with over 30% of the Kenyan beer market selling more than 700,000 hectolitres per year. Tusker is also the largest beer brand in the Diageo group of companies..[1] It is a 4.2% abv pale lager. The brand was first marketed in 1923, shortly after the founder of Kenya Breweries Ltd, George Hurst, was killed by an elephant during a hunting accident. It was in this year that the elephant logo, that is synonymous with Tusker Lager, was incorporated. The slogan "Bia Yangu, Nchi Yangu", means "My Beer, My Country" in Swahili.

In early 2008, the UK supermarket chain Tesco began selling Tusker, followed soon after by Sainsbury's

The company also makes Uganda Waragi, a 40% abv brand of waragi, traditional Ugandan liquor, and the leading branded distilled beverage in Uganda. It is made from millet, and triple distilled. It is known in Uganda as "The Spirit of Uganda," or simply UG. The main markets include other African countries such as Rwanda, the Democratic Republic of Congo and Sudan.

In 1965, "The Enguli Act" decreed that distillation would only be legal under license, and distillers should sell to the government run Uganda Distilleries Ltd – which produced a branded bottled product, marketed under the name Uganda Waragi.

EABL Foundation

The EABL Foundation is the Corporate social responsibility arm of East African Breweries, founded in 2005. It assists people in Kenya, Uganda and Tanzania through five areas of activity: water supply, education and training, health, environment, and special projects.

Its ongoing projects include the construction of an optical center in Moshi; the support of the Sickle Cell Association of Uganda; and the donation of an Ultra Sound Machine to Kirwara Hospital. The Foundation has supplied over 70 million Kenya Shillings (approx $972,000) in university scholarships.[4]

The EABL Foundation conducts special projects in times of disaster and when emergency relief is needed. Most recently, the Foundation took part in the Save A Life Fund, in which it donated over 14 million Kenyan Shillings (approx. $194,000) towards famine relief.[5]

Tusker F.C.

Tusker FC is a football club owned by East African Breweries. It is based in Nairobi, Kenya. It is the third most successful club in Kenya with eight Kenyan league championships and three Kenyan cup wins. In addition, it has won four East African CECAFA Clubs Cup titles.

The club was known as "Kenya Breweries" until 1999, when the current name was adopted. Tusker FC has two home stadiums, the Moi International Sports Centre and Ruaraka Sports Ground.
http://en.wikipedia.org/wiki/East_African_Breweries

http://inapcache.boston.com/universal/site_graphics/blogs/bigpicture/kenya_03_10/k21_22205825.jpg

Kisumu Ndogo

September 18th, 2010, 04:47 AM

http://assets.businessweek.com/images/bw-logo.png

http://www.bloomberg.com/apps/chart?timeout=10&h=225&w=220&type=gp_line2&range=1y&ticks=EABL:KN&cfg=ChartBuilderVol_bw.xml&img=png

EAST AFRICAN BREWERIES LTD (EABL:Nairobi)
LAST KSh194.00 KES
VOLUME 363.4K-EABL

Corporate Sponsorship

http://www.nation.co.ke/image/view/-/665946/highRes/104828/-/maxw/600/-/9b9jaez/-/PIX.jpg

http://www.nation.co.ke/image/view/-/466094/highRes/39926/-/maxw/600/-/gsxsd1z/-/omlmulezoG.jpg

http://egoimagekenya.com/wp-content/uploads/2009/10/2714042771_a56ca810cc_o.jpg

Nairobiguy

February 14th, 2011, 10:45 AM

^^
Just noticing the way Nakumatt has started invading every major street in Nairobi's CBD. Im not sure whether they are trying to get back the CBD customers they lost since the fire tragedy at their supermarket or its just to give Tusky's a run for their money.
^^

Hope we will be seeing some of this craze in Uganda soon..but ofcourse Kampala CBD is one crazy mess and that is why the kenyan retailers are moving to the suburbs, Bukoto (Nakumatt) Ntinda (Tuskys) etc. Here is Nakumatt Bukoto..

http://farm6.static.flickr.com/5140/5444335130_b02d9a853e_b.jpg

http://farm6.static.flickr.com/5132/5444354212_5c3d72020e_b.jpg

Ivern

February 15th, 2011, 12:23 AM

Library provider adopts a business model

The Kenya National Library Services has launched a rebrand aimed at stimulating interest in reading, diversifying its product portfolio and introducing new income streams.

The initiative, to be implemented over three years, will involve the construction of modern libraries, building partnerships with universities, upgrading infrastructure and restocking its collections.

One of the highlights will be the digitising its branches to position Kenya National Library Services (KNLS) as a “strategic provider of national information.”

The idea to integrate business centre in its activities is in line with Vision 2030, the national development blueprint, in which state corporations have been tasked to explore ways of generating revenue to supplement government allocations without losing focus on their core mandate.

“These business centres will be a natural catchment for the library,” said Mr Richard Atuti, the KNLS director, who added that more libraries would be built countrywide to increase KNLS presence in the market.

“This reform initiative is meant to change KNLS corporate face by identifying viable partnerships that will provide easy and cost effective ways of accessing,” he added.

It will among other things seek to improve the working and reading environment in public libraries to give them a touch of ambiance.

“We want to establish whether the furniture in our facilities is comfortable for customers who read for long hours. We also want to develop a feedback system that will enable us fully understand the needs of our customer,” said Atuti.

With a presence in seven out of eight of provinces, and eight out of the 47 counties, Mr Atuti admits KNLS national infrastructure is not sufficient to handle its ambitious plans, the recent surge in the demand for higher education and population growth.

Besides integrating the business model, the proposed libraries, will boost the image public library services and open an income stream to supplement KNLS’s meagre budgetary allocations.

Low budgetary allocation means that resources are spread thin. “We have very clear programmes,” he said, “but we are forced to scale down due to resource constraints.”

First among the reforms will be automation of library services. A model library has been constructed in Murang’a and will be replicated throughout the country.

It is fully equipped with the latest technology and information can be obtained with a touch of the button.

Already, two such branches have been constructed in Nairobi’s Buru Buru area and Nakuru and will be opened on February 21.

The construction of the new KNLS headquarters is expected to be complete by 2013.

hmckmbc223

February 15th, 2011, 06:00 AM

http://img842.imageshack.us/img842/5936/knt2008.jpg (http://img842.imageshack.us/i/knt2008.jpg/)

Uploaded with ImageShack.us (http://imageshack.us)

desert burner

March 29th, 2011, 12:00 PM

Kenol Kobil is deepening its reach into the non-oil products market to grow revenues and reduce over-reliance on fuel revenues.

The oil marketer has invested in real estate, setting up LPG plants, importation and sale of oil to regional marketing firms.

Managing director Jacob Segman said the firm had bought 17,000 acres of land on which it plans to build. He did not state where the land is.

The real estate investment is targeted at residential houses and shopping centres.

“We seek to grow our non-oil income from the current 10 per cent to 20 per cent in about six years,” said Mr Segman.

The company has set up a new LPG plant in Dar es Salaam with a capacity of 21,000 cubic meters.

The firm said it intended to grow her revenues in LPG from the current 16 per cent to 20 per cent in the next five years.

The LPG facility, which is worth $7 billion, will make Kenol Kobil the leading LPG distributor in Tanzania .

The firm has already taken over the LPG market in Rwanda.

In a move to strengthen her grip on Mozambique, Kenol Kobol has signed a contract with the government to set up a storage facility with a capacity of 21,000 cubic metres.

Mr Segman said the company’s growth in the oil sector in Kenya was hampered by poor infrastructure and government intervention.

The firm said it planned to start marketing paraffin in Tanzania.

“Only one firm markets paraffin. This opens a huge opportunity for us to grow our revenue.”

Mr Segman said they were seeking to start supplying oil to a market of more than 30 marketing firms in Zimbabwe.

In January, the firm bought a fuel terminal, an office block, and three gas stations from Phoenix Uganda Petroleum Ltd.

http://www.businessdailyafrica.com/Corporate+News/Kenol+Kobil+moves+into+non+oil+products+to+grow+its+earnings/-/539550/1134816/-/7cshde/-/index.html

Kenguy

March 29th, 2011, 01:42 PM

Im not sure if all that land is in Kenya. What I know is that they have aquired land in Addis Ababa, Ethiopia for some major real estate development. I can't seem to find any articles about that on the net yet.

Kisumu Ndogo

April 1st, 2011, 07:15 PM

Looks like KenolKobil is on the upsurge, things are looking rosy I believe the current instability in Oil markets culminating in price rises should be adding to the boon. They are planning a serious SADC rollout that I think should be lucrative since most of these market are still virgin territories with no major-international or local companies(I suppose) holding a stranglehold.

The real-estate venture will not be a big deal at the moment, I do not foresee any bubble effects in horizon especially with the target market holding steady, should be a joyride and an intresting look over coming days.

èđđeůx

May 15th, 2011, 09:27 PM

KQ brand flies into turbulence in Kampala
http://www.theeastafrican.co.ke/image/view/-/1162738/medRes/261736/-/maxw/600/-/lv1wb0/-/besi.jpg
Ugandan opposition leader Dr Kizza Besigye at the Jomo Kenyatta International Airport on May 11,2011 after he was blocked from boarding a Kenya Airways flight to Entebbe. He flew home on May 12, 2011. Photo/FILE

As one of Africa’s biggest and most profitable airlines, Kenya Airways is no stranger to political risk on the continent.

After all, Kenya’s national carrier is among the elite in the global airline industry that have managed to carve out a very lucrative niche by offering to take people from around the world to the most dangerous places on earth in Africa, generating on average $309 from every passenger it carries.

In the next few days, analysts at African Alliance expect that Kenya Airways will report revenues of $905 million, after carrying a record 3.1 million passengers — a sizeable number of whom were travelling to watch the World Cup in South Africa.

However, last week, Titus Naikuni, the boss of KQ, had a bitter taste of what it takes to be a dominant airline in the Ugandan market and in a region where national carriers have all but collapsed.

This was after the airline was caught up in the ongoing fight between Uganda’s President Yoweri Museveni and the leader of the opposition, Kizza Besigye.

Besigye is gaining a sizeable following in East Africa for standing up to the country’s police force, who have been blocking him from walking to work.

According to KQ’s account, the airline refused to allow Dr Besigye and his wife to board an 8am flight from his hospital visit in Nairobi because “internal intelligence sources” discovered that the aircraft would not be allowed to land at the Entebbe International Airport if he were on board.

This led to a confrontation between Dr Besigye and the airline, that in turn led to a phone text alert that unleashed a comical set of events that left Mr Naikuni and the airline facing a public relations fiasco throughout the region.

Both the Kenyan and Ugandan governments immediately denied they had anything to do with KQ’s decision.

Kenya said Dr Besigye has a right to enter and leave Kenya. It would have been awkward for Uganda to bar its citizen from returning home, for that would open another high profile media war.

By mid afternoon, based on the pent-up emotions that its decision had unleashed, it was clear that this was no ordinary scuffle between a $1 billion corporation and a passenger that could easily be explained by pointing at the strong arm tactics of a repressive government.

KQ — facing what could easily translate into a political boycott among the supporters of Dr Besigye — said it had issued the two “tickets to depart Nairobi in the evening. The airline takes this earliest opportunity to apologise to Dr Besigye for any inconveniences caused.”

But what really happened? Compared with the risk of a consumer boycott, Mr Naikuni faced a difficult business decision.

If the KQ flight disobeyed the “denied landing” threat and was turned back to Nairobi, the airline’s relations with Uganda would have soured to a point where its frequency to Entebbe could be easily slashed.

KQ flies to Entebbe four times a day and this is one of its most lucrative routes, relative to distance travelled.

For instance, the airline charges $325 for a return ticket from Nairobi to Entebbe —a flight distance of 509km, compared with $553 from Nairobi to Johannesburg in South Africa, which is 2,911km away.

This means the Entebbe flight yields $0.64 per kilometre flown, compared with $0.19 on the South Africa route.

Smaller rivals on the Kampala route charge between $199 and $130. Thus KQ would suffer in the regional market were its flights to Entebbe to be slashed because of this political standoff.

Dominant position

Kenya Airways enjoys a dominant position on the route, following the collapse of state-owned Uganda Airlines in 2001 after a bungled privatisation following years of mismanagement.

In 2007, Air Uganda was launched into the aviation market; it now flies three times a day on this route, compared with Kenya Airways’ four times daily. British Airways and Emirates also have flights.

However, while the potential stand off with the government was averted, KQ’s brand in the Ugandan market has suffered a dent, if the chatter among the political class and in the social media is to be believed.

There is a growing perception that KQ allowed itself to be compromised by the internal politics of a neighbouring country, where it also has a significant market share.

This could play into the hands of its main competitor on the Nairobi-Entebbe route, but none of the regional carriers have the muscle to take on KQ in a significant way.

The power of social media was evident when, hours after the incident, the blogosphere was abuzz with commentaries on the matter and a Facebook group called “Boycott Kenya Airways 4 violating Rd. Kizza Besigye’s rights” (sic) had 177 members by Friday morning.

The identity of the group’s creator or administrator could not immediately be established.

Comments online saw KQ’s decision through the prism of regional integration politics.

“Is this the East African Co-operation at work, or is the [Ugandan] government so powerful that it can influence decisions in the boardrooms of neighbouring countries?” asked one Internet user.

TheEastAFrican (http://www.theeastafrican.co.ke/news/KQ+brand+flies+into+turbulence+in+Kampala/-/2558/1162736/-/item/0/-/gd73kc/-/index.html)

èđđeůx

May 15th, 2011, 09:32 PM

Kenya hosts 3 of Africa’s top multinationals
http://www.theeastafrican.co.ke/image/view/-/1162788/medRes/261714/-/maxw/600/-/12vyeqf/-/kenol.jpg
One of the various KenolKobil outlets in Kenya. Photo/FILE

Kenya has incubated three multinational corporations that rank among the most successful in black Africa, says a new report by a global alliance of business leaders.

Kenol Kobil is listed in the study as the second-largest sub-Saharan multinational outside of South Africa. Kenya Airways and Kenya Commercial Bank, ranked 6th and 30th, respectively, are also on a top-30 roster headed by Oando, a Nigerian petroleum corporation.

The joint report by the Initiative for Global Development and Dalberg Global Development Advisors aims to direct Western investors’ attention to a set of African MNCs with growth rates far greater than those achieved in recent years by US and European multinationals.

Although these MNCs recorded annual growth of nearly 30 per cent from 2006 to 2009, there remains “so much untapped potential in these markets — potential for revenue as well as opportunity to create jobs and reduce poverty,” says James Mwangi, CEO of Kenya’s Equity Bank.

While it is not included in the top-30 list, Equity Bank’s strategy of growing through acquisition is highlighted in the report entitled “Pioneers on the Frontier: Sub-Saharan Africa’s Multinational Corporations.”

Mr Mwangi explains that his company, which now has six million customers in East Africa, chose Uganda as its first market for acquisition because it could capitalise on the existing brand recognition.

Uganda’s economy is also expanding more rapidly than Kenya’s, the report points out.

"Reconciling employees of the acquired bank with Equity Bank’s corporate culture was time-consuming and expensive,” the report adds in a cautionary note to African MNC executives considering a similar acquisition strategy. “To mitigate these costs for new operations in Rwanda and Tanzania, the company brought 100 employees from those markets to work at headquarters before they began work at the branches abroad.”

Gulf Energy is cited in the report as an example of a “beachhead” approach to expansion.

Companies relying on this model will launch a successful product line to cement its reputation in a target market and provide a base on which to build distribution and sales networks.

“Founded in 2005,” the report states, “Gulf Energy has quickly become an important trader, distributor and retailer of petroleum-based products by creating a sophisticated, vertically integrated supply chain capable of overcoming inefficiencies in East African logistics.”

TheEastAfrican (http://www.theeastafrican.co.ke/business/Kenya+hosts+3+of+Africas+top+multinationals/-/2560/1162786/-/6b170iz/-/index.html)
Hopefully w/ the advancement of the EAC the number of african multinationals originating from Kenya will increase....

èđđeůx

May 25th, 2011, 03:35 AM

Safaricom revenue up 13pc, hard work begins

Safaricom, Kenya’s largest telecoms operator, will have to tap deeply into innovation to ringfence its revenues, which grew 13 per cent in 2010 amid intense competition, tighter regulation and cost pressures.

The firm enters a new era where it has to eke out more revenues — especially non-voice revenues — from each of its 17.18 million subscribers in an increasingly competitive market where voice tariffs are set to fall even further.

Safaricom officials announced a 13 per cent growth in revenues to ($1.1billion) for its full year ended March 2011, adding that voice revenues came under intense pressure due to steep cuts in tariffs, although M-Pesa and data segments grew.

In results released last week, the firm’s chief executive officer, Bob Collymore, said net profits stood at Ksh13 billion ($149 million), a 13 per cent drop compared with the previous year’s Ksh15 billion ($172 million), on account of higher depreciation charges. Safaricom paid out a total of Ksh8 billion ($92 million) in dividends, or 20 cents per share.

In the face of the mobile phone industry’s price wars, Safaricom is finding more room for innovation and new lines of business to buttress falling voice revenues.

However, analysts said innovation and new lines of business — especially data — required more capital investments.

Therefore, despite the benefits of revenue growth, there could be a toll on net profits, largely from higher depreciation, leaving shareholders with either a steady or reduced dividend payout.

“Revenues grew at a faster rate than the subscriber growth as we continue to maintain market leadership,” said Mr Collymore, adding that this was a market where voice revenues were experiencing turbulence in tariffs.

Safaricom said total subscriber numbers were up 8.8 per cent to 17.18 million, marking the first time that revenue growth far outpaced subscriber numbers.

Most analysts were equally optimistic of Safaricom’s results, with major investment firms maintaining their “hold” rating on the stock.
“For Safaricom to record revenue growth was a strong statement on the importance of innovation. Just when you think they are done, they pull a rabbit out of the hat,” said Johnson Nderi, an analyst at Suntra Investment Bank.

The mobile phone industry’s price wars have meant that subscribers can talk for longer times at cheaper rates as Bharti Airtel and Essar attack Safaricom’s market leader position, offering cheaper calling rates.

The price wars in the telecoms industry has been compounded by reductions in mobile termination rates (MTR) — costs of calls to other networks — to Ksh2.21 per minute. It is expected to fall further to Ksh1.44 per minute at the beginning of July.

In Safaricom’s case, the Minutes of Use (MoU) per subscriber — how many minutes on average each subscriber uses within the mobile phone services financial year, which ends in March — increased from 60.6 minutes to 90.6 minutes.

Despite subscribers calling for longer periods, voice revenues declined by 1.7 per cent to Ksh63.5 billion ($730 million) but they still remain Safaricom’s biggest revenue driver, accounting for 66.9 per cent of total revenue last year, down from 68.6 per cent in 2009.
The Average Revenue Per User (ARPU) fell less than five per cent to Ksh437 ($5.2).

But the longer subscribers spend on calls, the more Safaricom has to invest in infrastructure to ensure they get better service, meaning that the mobile phone services will be increasing its capital expenditure to improve its infrastructure.

As voice revenues remained flat, acquisition revenues (sale of handsets and branded mobile phones), data, M-Pesa (the mobile money transfer service) and SMS continued to grow. The income from non voice revenue accounted for a third of Safaricom’s total revenues.

M-Pesa revenues increased by 56 per cent to 11.78 billion ($135 million) — half of the non voice revenues, with the users up 45.5 per cent to 13.8 million. Data, both mobile and fixed, also remained key as revenues increased by 80.3 per cent to Ksh5.3 billion ($61 million), with the number of users growing at a faster rate, by 85.6 per cent, to 4.9 million users.

The largest non-voice revenue growth came from acquisition revenues at 81 per cent growth to Ksh6.64 billion ($76.4 million) as Safaricom sold more handsets (close to 900,000) and laptops through its retail and customer care shops.

Internet penetration

Mr Collymore sees the drive to push access to mobile phone handsets as key to increasing Internet usage and penetration.

“The cost of handsets still remains a major hurdle to penetration,” he said, adding that the impact of the mobile number portability was not being felt because of the cost of handsets.

But even as Safaricom looks to sell more laptops and mobile phones to individuals and households, the margins from this line of business remains thin, analysts say.

“If people have the right equipment, they can increase their use of data,” said Eric Musau, an analyst with African Alliance.

“But the acquisition revenues do not have a substantial margin and they might be doing it to increase the non-voice revenue,” he said.

Despite the growing revenues there are indications that Safaricom’s margins are coming under pressure.

Safaricom’s growth in new lines of business will mean that the telecom company will have to up its capital expenditure, hence a higher depreciation charge eating into the net profits.

“We remain highly under leveraged and we will be looking at leveraging further,” said Chris Tiffin, Safaricom’s chief financial officer.

He added that they were still weighing the options of how to raise more funds for capital expenditure.

TheEastAfrican (http://www.theeastafrican.co.ke/business/Safaricom+revenue+up+13pc++hard+work+begins/-/2560/1167184/-/item/0/-/10l1yi1z/-/index.html)

èđđeůx

June 14th, 2011, 05:25 AM

Safaricom, Telkom plan joint projects to cut costs
Safaricom and Telkom Kenya are working on an agreement to share costs of setting up telecommunication towers to help them cut operating expenses as the industry faces diminishing profit margins.

In a yet to be concluded deal, the two firms said they were in advanced negotiations expected to be concluded in the next three months for formation of an independently-managed infrastructure company. The move will help the two companies to reduce on their capital and operational expenditures.

The proposed company will initially be formed between Telkom Kenya Ltd, Safaricom and a mutually designated professional and independent tower management company on agreed terms. Later, the consortium expects to invite other players into the company either as shareholders or customers on an open access model.
Continue reading (http://www.businessdailyafrica.com/Corporate+News/-/539550/1180224/-/rpm1yj/-/index.html).......

Will Kenya Airways fly past gloomy world forecasts to remain on profitability track?

In early 2009, Richard Nuttal, a former Kenya Airways commercial director, tendered his resignation shortly before the airline reported a Sh4 billion loss, its first in the 13 years it had been privatised, after its bet on fuel prices went sour.

Two years down the line, the national carrier grew its net profit by 73.9 per cent to Sh3.5 billion from Sh2 billion reaping from an aggressive route expansion launched last year and the bet on its fuel costs proving effective this time round.

The performance has cut out the airline as one of Africa’s’ fastest growing carrier, in a year of firsts; exceeding the three million passengers mark and crossing Sh80 billion ($1 million) in revenues.

But the greatest question is if the airline will circumvent the growing competition and rising costs of production in the industry and defy forecasts to maintain its profitability which saw it increase dividends payouts to shareholders by 50 per cent to Sh1.50.

The International Air Transport Association (IATA) has cut the profit forecast for the airline industry by 78 per cent to $4 billion in 2011, due to the March 11 tsunami in Japan, unrest in the Middle East and North Africa and high oil prices.
Continue reading (http://www.businessdailyafrica.com/-/539546/1177352/-/nfbqs0/-/index.html)....

èđđeůx

June 27th, 2011, 06:17 AM

Nation’ targets regional market with new products
The Nation Media Group (NMG) is diversifying its business across East Africa as part of the strategy to tap into the expected rise in demand for media services as the region’s economy gains momentum.

East Africa’s largest media house, which recently launched a Rwanda edition of its regional newspaper the EastAfrican, said it will be exploring avenues for growth in broadcasting and digital media to strengthen its position in the regional market of more than 120 million people.

The firm, however, warned that rising cost of production driven by high energy costs and a weak shilling could slow down profits in the near term.
BusinessDailyAfrica (http://www.businessdailyafrica.com/Nation+targets+regional+market+with+new+products/-/539552/1189290/-/12b4no2z/-/index.html)

Portland Cement asks state to offload its shares
East African Portland Cement Company (EAPCC) is asking the government to reduce its stake in the firm to below half in a move that will remove state restrictions on its operations in Kenya’s competitive cement market.

The cement maker says its compliance with state rules, especially on procurement, was blunting its competitive edge at a time when its rivals like Bamburi Cement and Athi River Mining (ARM) are not shackled by bureaucratic regulations, allowing them to make decisions fast.

The government owns 25 per cent of Portland while the state controlled National Social Security Fund (NSSF) controls 27 per cent—which combined make the company a state-owned company.
BusinessDailyAfrica (http://www.businessdailyafrica.com/Corporate+News/Portland+Cement+asks+state+to+offload+its+shares/-/539550/1189344/-/cecg6nz/-/index.html)

Kenguy

June 27th, 2011, 07:36 PM

[QUOTE=èđđeůx;80370048]Nation’ targets regional market with new products

^^
At least two media houses. Nation Media Group and Royal media (citizen TV) are planning to expand into Rwanda in the near future.

èđđeůx

August 14th, 2011, 05:22 PM

Nakumatt of Kenya Plans Equity Sale for Expansion, Reuters Says
Bloomberg (http://www.bloomberg.com/news/2011-08-11/nakumatt-of-kenya-plans-equity-sale-for-expansion-reuters-says.html)

Nakumatt Holdings Ltd., a Kenyan- based supermarket chain with 33 outlets, said it wants to sell almost half of its equity to investors to help fund regional expansion, Reuters reported, citing managing director Atul Shah.

The first sale for a 15 percent to 18 percent stake may raise $50 million, followed by a second offering aimed at foreign investors for 25 percent to 30 percent ownership, the news agency reported. The company, which also has branches in Uganda and Rwanda, aims to open its first stores in Tanzania, South Sudan and Burundi by the end of 2012, it said.

Nakumatt’s revenue is expected to increase by about a third to 40 billion shillings ($427 million) in the 12 months through February 2012, Reuters cited Shah as saying.

èđđeůx

August 19th, 2011, 03:13 AM

Kenya Airways tops the list of firms that make Kenya proud
BDA (http://www.businessdailyafrica.com/Corporate+News/Kenya+Airways++tops+the+list+of+firms+that+make+Kenya+proud+/-/539550/1221426/-/item/0/-/v87nlkz/-/index.html)

Kenya Airways has topped the list of companies that make Kenya proud, according to an online survey by the Nation Media Group.

Up to 31.62 per cent of online readers who took part in the Business Daily and Daily Nation survey voted for the airline as the company that has made Kenya proud, concurring with KQ’s Pride of Africa slogan.

The readers cited national flag colours on the airline’s fleet, an aggressive expansion drive in Africa, and the nerve to take on established airlines on global routes as the basis for their choice.

Safaricom was second with 19.89 per cent of the vote, while Equity Bank was third with 16.45 per cent.

“By carrying the Kenyan flag, KQ is able to register Kenya’s presence not only on the routes it flies but also in the global aviation industry where it is fast becoming a force to reckon with,” commented one reader.

Kenya Airways’ high rating is likely to give fresh impetus to Brand Kenya’s plans to introduce national symbols on all export products from the country.

The campaign is aimed at enabling less known export products to ride on the goodwill that flagship products such as tea, horticulture, and coffee have created in their niche markets.

Most innovative

The online readers, however, ranked Safaricom — known globally for its pioneer mobile money transfer service M-Pesa — top in five out of the seven parameters that were used to rank the companies.

The readers voted Safaricom’s products as the most innovative, identified its corporate governance practice as the best, and feted the telecoms firms as unrivalled in the quality of service it extends to customers. The readers also hailed the company’s involvement in community development projects through its corporate social investment arm called Safaricom Foundation.

Of the participants, 29.15 per cent said Safaricom was the firm most committed to corporate social responsibility compared to 25.12 who voted for Equity Bank, and 10.11 per cent for East African Breweries Limited.

Topped ranking

Safaricom also topped rankings as the company with the best environmental safety and green practice standards in the country. Equity Bank’s investment in youth development through its scholarship and internship programme also paid off.

Equity was rated by 40.29 per cent of readers as the company that has made the greatest contribution towards development of Kenyan people, beating by a wide margin its closest rivals Safaricom (24.14 per cent), and Athi River Mining (9.73 per cent).
ARM, which did not top any category, was cited by readers as a success story of Kenya’s entrepreneurial spirit.

Readers said the company had successfully used locally available resources to grow from a family owned business to a regional firm.

èđđeůx

August 21st, 2011, 04:50 AM

Cement maker EAPCC to seek capital for expansion
ABN Digital (http://www.abndigital.com/page/news/top-business-stories/195312-Cement-maker-EAPCC-to-seek-capital-for-expansion)

East African Portland Cement is worried rising production costs will shrink profit this year as it seeks to raise capital through a bond or rights issue for expansion into Uganda, its head said on Friday.

A construction industry boom in east Africa, fostered by housing demand for a rising population of about 137 million and infrastructure development, has accentuated cement orders.

"We will probably be thinking of a rights issue for the new large factories we want ... probably next year," Kepha Tande, managing director of East African Portland (EAPCC), told Reuters in an interview.

He added a bond issue was another option, but declined to say how much the company planned to raise.

Tande said construction of a grinding plant in Uganda with annual output capacity of at least 500,000 tonnes is expected to begin next year at a cost of between 3 billion shillings ($32.2 million) and 8 billion.

Expansion of its Kenyan clinkering plant by 1 million tonnes will require about $200 million. Clinker is a key ingredient in cement manufacturing, and is made by heating limestone.

EAPCC, also an exporter to Tanzania and Rwanda, is grappling with costs. Tande said these had risen by 20-25 percent in the last few months, a factor expected to dent profit.

"Costs are escalating at a very high rate, faster than our revenues are able to grow. At the same time, we have pressure on prices," said Tande.

"We expected at least 1 billion shillings in net income (for the year to June 2012) but now we probably expect 20 percent less than that."

Depreciation of the local currency, which has lost more than 14 percent, has added pressure as has unreliable power provision from the country's sole distributor, Kenya Power Company.

"The only solace will be greater volume, and that calls for investment and expansion."

With little growth seen after a price fall of about 10-15 percent in the last year due to new entrants such as National Cement, expansion in new markets to push up volume is the new strategy to sustain profit momentum.

Appetite for cement in newly independent South Sudan is expected to surpass Kenya's total demand of about 3 million tonnes a year in the next three years because "it is completely greenfield", Tande said, presenting more growth opportunities.

Plans are under way to expand production at EAPCC's main cement plant by 45 percent from 1.3 million tonnes a year, and its clinker plant by 25 percent from 600,000 tonnes annually.

èđđeůx

August 24th, 2011, 01:46 PM

Buyback of stake puts EABL under pressure
BDA (http://www.businessdailyafrica.com/Buyback+of+stake+puts+EABL+under+pressure/-/539552/1224016/-/item/0/-/ntmv82z/-/index.html)

East African Breweries is expected to report an accounting loss next year arising from the shareholding swap with South African beer maker SABMiller, but the net impact of the multi-billion dollar transaction will be a gain on EABL’s income statement.

EABL is expected to pay out Sh19.5 billion for acquisition of a 20 per cent stake in Kenya Breweries, which is currently owned by SABMiller.
According to a research note by Renaissance Capital, EABL is, on the other hand, expected to receive Sh7.3 billion for its 20 per cent shares in Tanzania Breweries, in a transaction that will end an eight-year marriage of convenience between the two brewers.

“We think EABL is likely to book a large one-off loss regarding the KBL stake buy-out. The stake is accounted for as approximately Sh3.1 billion on its balance sheet. The buyout price has been set at Sh19.5 billion and the difference will be accounted for as a loss in financial year 2012,” said Renaissance Capital.

The accounting loss of Sh16.4 billion from re-purchase of the Kenyan operation will be partly offset by a net gain in the disposal of the Tanzanian business, according to RenCap.

Tanzania Breweries’ book value is Sh2.7 billion, and EABL will sell it for approximately Sh7.3 billion. “We expect the difference to be booked as a one-off gain in financial year 2012.”

EABL’s cash pile of Sh7.9 billion is expected to help finance the acquisition without the need for external borrowing, but this will reduce the firm’s dividend payout this year and next year, according to Renaissance Capital’s projections. EABL is expected to announce its full year results on Friday.

Renaissance predicts that growth in beer sales in Kenya, Uganda and Tanzania will generate sufficient cash to finance the acquisition, adding that any deficits could translate into reduced dividends.

“We expect a reduction of 28 per cent in its dividend payout in FY11, and a 14 per cent reduction in FY12,” said the Renaissance research note.

EABL’s revenues are expected to grow by 19 per cent between 2010 and 2011 consisting of 12 per cent organic growth and the balance coming from the SBL acquisition and at a compounded annual growth rate of 17 per cent between 2011 and 2015.

xJamaax

December 10th, 2011, 01:58 AM

^^ Why do they have to swap?

Anyway more integration with EABL is not that bad considering the fact that it will help EABL have more say on operations and being a regional giant in beer industry is one strength that is likely to put KBL back to profitability.

èđđeůx

December 12th, 2011, 04:23 AM

Nakumatt opens branch in Tanzania, eyes key towns
BDA (http://www.businessdailyafrica.com/Corporate+News/Nakumatt+opens+branch+in+Tanzania++eyes+key+towns+/-/539550/1287648/-/muj6og/-/index.html)

Nakumatt Holdings has opened its first outlet in Tanzania in a race to tighten its grip on the regional market as Kenyan retail chains increasingly look at the East African market for growth.

The retail store officially opened its first outlet in Moshi town on Saturday and is targeting to open four more outlets in major urban centres such as Dar es Salaam and Arusha next year.

This looks set to open a new battle front for the control of the market where Uchumi has already opened shop and as Tuskys plans to enter the country next year.

The opening of Nakumatt Moshi brings to 35 the number of outlets across Tanzania, Rwanda, Kenya and Uganda even as the firm eyes Burundi in two years.

“Nakumatt is actively exploring options for a store in Burundi to ensure that we fully cover East Africa before setting off on the Nakumatt 2.0 journey which involves registering a pan-African presence,” said the Nakumatt Holdings managing director Atul Shah.

The $ 1.3 million (Sh117 million) investment in Moshi is set to ignite a war in a market now dominated multinational retail chains Shoprite Holdings and Game Stores both from South Africa.

The fight for the control of the region’s retail market is set to continue with Tuskys planning to set up it second branch in Ugandan early next year while focused on Tanzania and Rwanda.

“We are opening our second branch in Uganda early next year as we plan to enter Tanzania and other regional markets,” said Mr Frank Kamau, the managing director Tuskys Supermarket.

Uchumi is also planning to open its fourth branch in Kampala next year having opened a new branch in Gulu town this year.

Mr Shah said Nakumatt is conducting a feasibility study for Burundi, Zambia, South Sudan, DRC, Nigeria, Botswana and Malawi.