Category: Business

Cytonn Investments Management Plc (‘Cytonn’), the leading alternative investment management firm in the East African Region, has today entered into a transaction with its leading institutional partner, Taaleri of Finland, whereby Taaleri has acquired the option to subscribe for up to 20% of Cytonn. Upon consummation, the transaction enhances the Cytonn & Taaleri relationship beyond project finance to shareholding.

This will be the 5^th time the Finnish firm will be investing with Cytonn, having already committed over Kshs 5.0 bn towards projects and investments with Cytonn, namely The Alma, The Ridge, Situ Village and Amara Ridge, which has already been delivered to homeowners. In addition to their investments, Taaleri has already successfully received back its investments from Amara Ridge and The Alma, underlining Cytonn’s commitment to deliver above-average returns in real estate for global institutional investors.

Taaleri is a financial group, whose parent company Taaleri Oyj’s shares are listed on the NASDAQ stock exchange. Taaleri manages investments worth Kshs 813 bn and provides funding in the capital-intensive real estate sector in Africa through two Africa dedicated real estate funds.

Speaking at the signing of the agreement, Edwin H. Dande, CEO of Cytonn Investments, noted that “We are thankful to Taaleri for the continued support they have shown to the Cytonn brand. This transaction is important for two reasons; first it affirms market confidence in our brand and unique business model, and second it provides a strong anchor investor as we prepare for our IPO, which we hope to complete next year, either at a local or global exchange. We have already engaged with two sets of transaction advisors, in Nairobi and London, to explore a local listing either at the Nairobi Securities Exchange, NSE, or a listing at the London Stock Exchange, LSE, respectively. The ultimate listing jurisdiction will depend on valuation, investor interest and ease of listing. We also hope to broaden our partnerships by bringing on board one additional local or global anchor institutional investor at the IPO.”

Speaking at the signing, Mr. Juhani Elomaa, CEO of Taaleri Group, who recently visited Cytonn’s real estate projects noted that “Taaleri and Cytonn are now in their fifth year of partnership, and Cytonn remains our trusted partner for deploying capital to the East African Region. Through Cytonn, Finnish Pension Funds and Investors have not only earned attractive returns that are not available in the developed markets, but we have contributed to growing the Kenyan economy, creating jobs, and driving the deepening of capital markets through structured finance transactions. The share options agreement for a 20% stake is an opportunity to deepen the relationship beyond project finance to shareholding.”

Cytonn Investments Management Plc is an independent investment management firm, with offices in Nairobi – Kenya and D.C. Metro – U.S.l and are primarily focused on offering alternative investment solutions to individual high net-worth investors, global and institutional investors and Kenyans in the diaspora interested in the high-growth East-African region. They currently have over Kshs 82.0 billion of investments and projects under mandate, mainly in real estate.

Cytonn Real Estate is Cytonn’s development affiliate, which is focused on developing institutional grade real estate targeted at specific institutional, high net-worth and Diaspora investors. Collective, Cytonn Investments and Cytonn Real Estate manage over Kshs 82.0 billion of real estate projects.

Gutted with Systems’s operations, Humphrey Muchiri an ordinary Kenyan has kicked off a petition to force reforms in the banking system, “Banks have been FRUSTRATING and STEALING from Kenyans by requiring debtors to pay up to 50 TIMES the principal borrowed against the law.” He writes.

This is in spite of Amendment No. 9 of 2006 of the Banking Act, which ushered in the application of the in duplum rule. This rule simply provides that banks only recover contractual interest that does not exceed the principal amount owing. At Section 44, the act clearly indicates that the amendment is retrospective, meaning that it is applicable to all loans including those that were issued before the change. Parliament’s resolve to afford inviolable protection to ALL debtors is evident in myriad Hansard records.

Eleven years on, however, the impunity that parliament sought to arrest persists. The expectation was that banks would align their practices accordingly, and that any discrepancies in applying the law would be cured in Court. But this has not been the case.

Indeed, judges have taken care to calculate interest and enable consumers to redeem their properties. It is perplexing that the same banks whose unconscionable interests are nullified in court just proceed to do the same thing to the next consumers, and the vicious cycle of blatant theft and abuse continues. National Bank of Kenya and its debt recovery employees are the most notorious culprits here according to the petition.

The violence of this illegal, usurious practice is horrifying. Many Kenyans have lost and continue to lose their properties and millions of shillings because of this kind of impunity.

And since most of the debtors who are affected by this illegal practice are now old, many have gone into shock or simply died. The amendment sought to shore up the right to redeem one’s property and prevent banks from bankrupting Kenyans just because they at one time needed and took loans.

Imagine being thrown out of property worth millions or even tens of millions just because of a Sh200, 000 loan that has miraculously shot up to Sh20 million. Imagine facing unscrupulous bankers bent on defeating consumers’ protection under Section 44 and even going so far as skipping the need to issue redemption notices according to the Land Act. The distress and losses caused by this evil are unfathomable.

“Urgent actions are needed to end this evil usurious culture at NBK and other banks ONCE AND FOR ALL. Banks and their officials MUST understand that rights accrue to ALL Kenyans, not just the few who manage to go to court.” Says the petition.

The precise requests of the petition to the relevant bodies and persons include:

1. the cancellation of all private treaties that customers have been induced into signing under duress and fraudulently thereby burdening them with hefty loans.
2. the cancellation of all redemption notices that mention ridiculous amounts whose only purpose is to defeat borrowers’ right of redemption and strip them of their valuable property
3. the stoppage of all attempts to exercise the statutory power of sale until all consumers are notified of the correct outstanding amounts
4. that all bankers who have slapped consumers with unconscionable interests and failed to give them legitimate notices that uphold their right of redemption be held liable for their actions
5. that banks be forced to reimburse all Kenyans who have been prejudiced so far
6. that banks be forced to calculate interest in the letter and spirit of Section 44
7. that banks and auctioneers be forced to adhere to the Land Act, which governs the issue of redemption notices
8. that banks, their officials, and auctioneers be investigated with a view to punishing any malpractice and reimbursing all victims.

The expectation is that the petition will go a long way into transforming bank practices as well as safeguarding lives and property.

Have you been a victim of this scheme or have a story on any bank that you’d like to share and be published? Write to me on ([email protected])

Real estate remains a preferred investment venture in Kenya and one needs excellent knowledge of the market and that’s why investment firms are working around the clock to satisfy and give clients a top class treat.

Cytonn Investment, a young entrant into the industry is such that is cutting out a nitch with its rapid and steady growth commanding a firm grip in the wide pitch.

Investment firm Cytonn earlier this year  announced three fold growth in net profit to Sh398 million for the year ending December 31, 2017.

The 276.7 per cent rise in profit was up from 105.7 million recorded within the same period in 2016.

Cytonn attributed the sharp rise to a strong revenue growth arising from construction projects and the realization of gains from investment in the stock market.

The firms group revenue doubled to Sh1.01billion from Sh543.94 million announced in 2016, while that of the company went up to Sh193.4 million from Sh119.86 million.

The growth in total assets was driven by strong growth in the real estate projects under mandate, with Investment Property growing to Sh10.8 billion in 2017 from Sh8.9billion in 2016.

Investments in financial services through quoted Private Equity Investments delivered Sh342.1 million to the firm in revenue in 2017.

Cytonn prides of some outstanding Real Estate projects in the country that is making it a preferred investment firm in the new economy times. Some of the mega projects are as below:

1.Cytonn Towers

Cytonn Towers is a proposed iconic Mixed-Use Development on a 4-acre parcel in Kilimani, at the junction of Argwings Kodhek and Elgeyo-Marakwet Road, 10 minutes from Nairobi CBD. The development will be built to embody world class standards in destination real estate and is expected to be Nairobi’s premier Business, Retail and entertainment, Hospitality and Residential address when complete.

2.RiverRun Estates

RiverRun Estates is a master-planned development to be undertaken on a 100-acre parcel located in Ruiru, Kiambu County approximately 7 Km from the Thika Superhighway and 1.5 km off Kiambu-Kamiti Road and falls within the precincts of both Tatu City and Migaa Golf Course.

The development has lots of green spaces, outdoor play areas and recreational facilities including swimming pools, a water park, access to a dam with a water frontage of 800m and clubhouse facilities. The residential units are in clusters to enhance community living and security within the units.

3.The Ridge

The Ridge is a comprehensive and luxurious mixed-use development located in Ridgeways, Nairobi approximately 10 km from the CBD, 300m from the junction of Kiambu Rd and the Northern Bypass, 5 minutes’ drive from the Two Rivers Mall, the biggest shopping mall in East Africa, less than 5 minutes’ to Windsor Golf Club and 10 minutes’ from UNEP headquarters in Gigiri.

4.Taraji Heights

Taraji Heights is a comprehensive mixed-use development where style, nature, community living and convenience meet. Nestled in the scenic and serene environment of Ruaka, Taraji Heights is only 30 minutes from the Nairobi CBD, 5 minutes from the Northern Bypass and 10 minutes from UNEP headquarters in Gigiri. The development comprises 2, 3 and 3 bedroom apartments with a DSQ, a retail facility, a private clubhouse with a swimming pool, gym and spa and well-manicured gardens.

5.The Alma

The Alma is a comprehensive residential development with modern 1bd, 2bd, and 3bd apartments & impeccable finishing. The project is strategically positioned in the heart of the fast-growing Ruaka neighborhood. It is only a 20minutes drive from the CBD and 40 minutes drive during rush-hour. The adjacent suburbs Runda, Rosslyn and Muthaiga also make the location quite secure and attractive for investors.

6.Amara Ridge

Amara Ridge, an exclusive private gated community in Karen, is close to everything in Karen yet tucked away from it all. Conveniently located with easy access to Lang’ata Road and Ngong’ Road, residents have an array of amenities to enjoy and events to keep their calendars buzzing with activity all year round.

7.Newtown

Newtown is an exceptional master planned development within the greater Nairobi Metropolis that once complete, will comprise of residential, commercial, educational, logistics, recreational & hospitality precincts. Newtown sits on approximately 1000 acres located in Athi River, Machakos County, approximately 10 km off Mombasa Road along Mutongoni Road. The development aims to provide a world-class city that will create a Live, Work & Play environment while creating traction for the area.

Cytonn has also received the go-ahead from the competition watchdog to buy Nairobi’s luxury hotel-cum-furnished apartments vendor Wasini Resorts.

In last Kenya Gazette notice, the Competition Authority of Kenya said it had approved the sale, which will see Cytonn acquire 100 per cent shareholding in Wasini Resorts.

Mulinge has worked at Safaricom for quite a while leading to her departure from the company, while she was the Director of Consumer Business Unit, a few months ago. Ms Mulinge left to head Tanzania’s Vodacom as the Managing Director.

Things, however, did not go as planned as she was denied a work permit on the basis that there are Tanzanians who could do the job as well. Vodacom went ahead and appointed Hisham Hendi as acting MD as Sylvia Mulinge sorted out her work permit issues.

The wait is over but not with Ms Mulinge heading the Tanzanian telco but with her homecoming appointment at Safaricom. In a memo to staff members, Safaricom’s CEO announced the appointment of Sylvia Mulinge as Director of Special Projects as of 1st October 2018.

“In this role, she will report directly to me and will be responsible for spearheading our commercial revival and help us deliver our strategy and transform Safaricom into a business that is fit for the future,” said Mr Bob Collymore.

Sylvia’s new role will see her work to restore Safaricom’s wearing-out customer trust and loyalty. Bob’s memo says that Ms Mulinge will be working with the commercial teams. This follows recent changes in Safaricom’s products as a measure to appeal to customers.

Mulinge’s comeback to Safaricom is a win for the company that could not afford to lose her. Sylvia has been paramount to the transformation of Safaricom to what it is today through customer segmentation (Blaze and Platinum) and development of new products such as Songa that has seen the company move from being a traditional telco to what they call a social network with their motto being, “Twaweza”.

Courtesy Techweez

Nairobi 20th September 2018………Fives months after joining Equity Group Holdings Plc, Polycarp has been confirmed and named the Managing Director of Equity Bank Kenya. This marks the completion of the Group’s strategy of separating the management of its subsidiaries from that of the Holding Company. Dr James Mwangi will now serve as the Group Chief Executive and Managing Director providing overall strategic direction and oversight to the Group.

Speaking while making the announcement, Dr Mwangi said “The Board has completed the process of separating the operations and management of the Kenya subsidiary from that of the Group and appointed Polycarp the Managing Director of Equity Bank Kenya. Polycarp’s strong values and passion have enabled him to quickly fit well in the Equity Group organizational culture. He has distinguished himself as a results oriented and committed business leader who is Equity Bank is currently the largest bank in Eastern and Central Africa region with over 12.6Million customers, the largest in market capitalization and the second largest in balance sheet.

It is listed at the Nairobi securities exchange and cross listed in Uganda Stock Exchange and Rwanda Stock Exchange. It has banking subsidiaries in Kenya, Uganda, Tanzania, Rwanda, South Sudan and DRC. renowned for fostering productive partnerships with external stakeholders and customers, resulting in delivery of outstanding company results. He has taken over a very successful subsidiary and market leader. We believe he has the skills, competence, capability and vision to retain Equity Bank Kenya in its leadership position while taking it to the next level.”

Equity Bank Kenya holds the lion share of the Group’s business and contributes over 80% of the profitability. It is the first subsidiary of Equity Group Holdings Plc which has become a case study of excellence in growth management and transformation from a technically insolvent building society to a globally competitive bank. The Bank has been named the Top Banking Superbrand in Kenya for ten years in a row since 2007.

Moody’s gave the bank a global rating of B2 with a Stable outlook same as the sovereign rating of the Kenya Government in 2017. Global Credit Rating Co. (GCR) rated the bank AA- for long-term and A1+ for short term, with a stable outlook reflecting the Group’s strong competitive position in Kenya’s banking industry in 2017-2018. The Banker Top 1000 World Banks 2018 ranked Equity Bank position 11 globally on Return on Assets, position 44 on Profits on Capital and position 35 on soundness or Capital Assets Ratio.

In 2018, The bank was recognized by the Banker Awards East Africa as the Best Commercial Bank in Kenya and East Africa, the bank with the Best Digital Offering in East Africa and the Most Innovative Bank in Kenya. The East African Business Council awarded Equity Group Holdings the Overall Best Regional Company in East Africa, 2018. The African Banker Awards 2018 feted Equity Bank as the African Bank of the Year while Euromoney awarded Equity Bank as the Best Bank in Kenya 2018.

In Kenya, the bank emerged the Overall Best Bank in the 2018 Think Business Banking Awards for the 7th year in a row. It also won across 22 award categories becoming the most recognized market leader in the country.

Kenya led in the implementation of the Group’s digitization strategy that has seen the bank move over 97% of its transactions from the banking halls to self service digital banking tools. The bank pioneered in rolling out agency banking in the region, setting the pace for the other subsidiaries. The Group’s social impact investments coordinated by Equity Group Foundation have benefitted immensely from Equity Bank Kenya’s infrastructure which provides the Foundation with unrivalled implementation capability giving the Foundation a high return on investment.

About Polycarp Igathe

Mr Igathe is a highly accomplished corporate executive, seasoned in overseeing large commercial enterprises in the Fast-Moving Consumer Goods (FMCG) sector and with a remarkable track record of success in spearheading business growth and product development. Mr. Igathe has successfully served as CEO of leading blue chip corporate entities in Kenya and Eastern Africa, namely Coca-Cola SABCO, Africa Online, EABL, Haco Industries, Wines of the World, Tiger Brands International and Vivo Energy.

He has been elected, nominated, and appointed to serve as Non-Executive Chairman and Board member in several commercial and public-sector entities. Further, he has served as Chairman Kenya Association of Manufacturers (KAM); Chairman Petroleum Institute of East Africa (PIEA); Director & Trustee Kenya Private Sector Alliance (KEPSA); and Chair Board of Management at BG Ngandu Girls High School.

Igathe has served as Chairman Kenya Association of Manufacturers (KAM); Chairman Petroleum Institute of East Africa (PIEA); Director & Trustee of the Kenya Private Sector Alliance (KEPSA) and was the immediate former second Governor of the Nairobi City County. He brings his business networks and experience in the Eastern Africa private sector scene to grow the Equity brand in the corporate segment of the market.

Igathe is celebrated as a Warrior of the Marketing Society of Kenya (MSK), Savant of Marketing by Marketing Africa Magazine and as Savant of Policy Advocacy by the Kenya Association of Manufacturers (KAM). Igathe obtained a Bachelor of Arts degree in Economics & Sociology, from the University of Nairobi and is a graduate of the Strathmore University’s Advanced Management Program (AMP) with IESE Business School in Spain. At the University of Nairobi, he was the national Chairman of AIESEC in Kenya, the International Association of university students interested in Economics and Business Management.
He was the second Deputy Governor of Nairobi County, under the devolved government before his resignation from the post in January 2018.

Justice John Mativo’s ruling today to have the case between Britam and it’s former executives to go on full trial, marks the start of a battle that has been floating in the courts since 2016 and one of the biggest corporate battles given that both are investment companies.

British-American Investments Company (Britam) had accused it’s former managers Edwin Dande, Elizabeth Nailantei Nkukuu, Patricia Njeri Wanjama and Shiv Arora over alleged irregular sums from Britam-affiliated accounts to rival companies.

The former managers had challenged the decision by the Director of public prosecution (DPP) to have the case go on full trial as irrational or illegal and their rights infringed, but all these have been dismissed with the judge’s decision to have the case go on trial court.

Britam had accused its former executives of wiring Sh1.16 billion out of Britam in five tranches to multiple accounts held by Acorn at Chase Bank and a further Sh2.78 billion to seven entities that are subsidiaries of Acorn.

I’ve come to notice the fraud cases were raised in 2016, two years after the executives left and formed another investment company;Cytonn which Dande one of the accused is the CEO. Being in the same field, one can’t help notice sprinkles of business rivalry between the two based on the court arguments I’ve seen.

Based on records, the former managers had accused their employer,Britam of engagement in several illegalities such is illegally  using client insurance funds to purchase shares of Britam to rescue a failed IPO, they also claimed that they objected to using insurance funds under their management to purchase a failing bank – a transaction that led to loss of billions of shillings of investors’ funds.

Also claimed they objected to failure to send statements or sending out-rightly misleading statements to investors in the unit linked products, we resisted being forced to put excessive funds into a bank where a relative of a Britam director worked, but what brought matters to a head was an attempt to have them take away from clients a Kshs. 5 billion portfolio, one that they had originated for clients, and gave to the group.

On leaving Britam, the managers were slapped with upto 7 different suits which later came down to two that are the subjects today. The suit was dropped against property development group Acorn and seven of its affiliates following an out-of-court deal.

Britam bought into Acorn in 2014 as the two firms agreed to partner on big-ticket real estate projects It is this joint venture between Britam and Acorn that was the source of a fallout that saw Dande, Ms Nkukuu, Ms Wanjama and Mr Arora exit Britam to found their own company—Cytonn Investments.

The two parties however fell out, with the insurer selling its stake in Acorn. This paved the way for Acorn to team up with a new partner, leading to its deal with Helios in the form of joint ventures.

While the courts have their say and the trial must go on regardless, there are basic questions in a layman’s level that has caught my curiosity in this case. How could a fraud in the scale of Sh9.8b occur in a company just by few executives without knowledge of the senior management I’m talking about the board. You can’t convince me if any fraud of that magnitude would happen then it would escape the top ranks knowledge, they’re either complicit of flipping pages for own interests.

First off, the money Britam claims was illegally transferred was recovered through a different firm Acorn, logically, such a transaction cannot happen without the knowledge of the senior officials not unless Britam lacks the basic channels of operations in any major company.

In a petition filed by the former employees back in 2016, the Executives of Cytonn Investments claimed that their former employer, Britam, has been harassing them for founding a competing firm. In the petition, Cytonn Executives wanted Britam compelled to furnish it with a forensic audit report carried out on the fund manager’s books, and a legal audit done on Britam’s transactions to establish whether the disputed transfer of funds was illegal as claimed by the firm.

Following the announcement between President Uhuru and President Trump, JKIA has now achieved Last Point of Departure (LPD) status. This allows JKIA to facilitate direct flights between Kenya and the US.

Kenya’s National Carrier Kenya Airways  will now fly directly to the US, presenting new opportunities for Kenyans in Travel, Trade and Commerce. The 1st flight is scheduled to depart on 28th of October 2018.

This is a major achievement for Kenya as JKIA becomes one of the elite  African airports to be certified as a last point of departure to the United States. JKIA is now poised to become the premier  hub in Africa.” – KAA MD Jonny Andersen.

The good news is coming at a time when the national carrier is reporting a rather not so good news. Kenya Airways has made public its performance for the six month period ended 30th June 2018. Bottom line, the airline posted a loss before tax of Sh 4.035 Billion compared to Sh 5.6 Billion posted in a similar period last year.

The airline’s total revenue increased slightly to Sh 52.1 Billion from Sh 50.6 Billion posted in the same period in 2017. Total operating expenses grew by about Sh 2.0 billion to Sh 53.2 Billion.

The airline’s CEO Sebastian Mikosz noted that the increase in operating costs (14%) was mainly as a result of increased pressure on global fuel prices.

HOW SAFARICOM SCAMMED ME Ksh 50,000. LONG READ.

By Wilson Olenye

I had initially planned to post about this yesterday but I needed at least a day to contemplate and comprehend the horror that Scamfaricom has meted on me.
On Thursday, June 21, 2018 at 7:29 PM, I received Ksh 50,000, which was payment for goods from one – Daniel Mwangi Mukami of 0704841672. At this point, everything seemed banal and normal with the transaction but as it eventually turned out, well, according to safaricom it wasn’t. However, I didn’t know that at the time and ended up honoring the payment and finalizing my transaction with the sender.

Things would then go south, real quick after 3 hours when I tried to purchase airtime via Mpesa and was told there was an error with my line. Like any Kenyan would do I quickly turned off my phone assuming it was a network error or something benign like systems downtime. To my shock, the line was still inactive after many feeble attempts to revive it. I decided to call customer care with my other line and they fed me with a thick mixture of nonsense and excuses that couldn’t really help me. The following day I abandoned all my regular activities went to your I&M shop, and was referred to the HQ in Westlands because apparently this was an issue for the MPESA Fraud department, and being a Friday evening I had to wait till Monday be assisted.

On June, 25, 2018 I finally made it to the Mpesa Fraud department and explained to this guy, Emmanuel, my situation which he seemed to understand but very adamant to instantly assist in. When I finally asked why my line was suspended, he said, “The source of the money sent to your account is questionable and thats why we Suspended your line and Froze your account.” I couldn’t understand this and asked what he meant questionable, because as a merchant, I cannot, even with superpowers know where my client gets his money, as a matter of fact there is no law the dictates you to know the source of funds before receiving. Anyway this guy tells me that they had no choice to but to suspend my account because my line was the last in a paper trail of dirty funds and the only way is to produce the guy who sent them. Since I traded with the person online it was impossible for me to produce him but I kept asking myself why would Safaricom want me to go look for this person, who also happens to be their customer, and they have all the resources and data to get him, why don’t they just go and get him. The guy couldn’t answer this question and insisted on me getting him.

Realizing it was getting late, I was chasing my tail with that track the guy for us nonsense, and also having savings in my KCB balance stuck in the phone number too, I decided to ask the guy whats the miminum requirement to reactivating my line because I wasn’t returning there for this matter again.

Things got really interesting because the guy suddenly became lively and said, “We must recover the amount first before the we reactivate it.” I was very shocked to hear this, since when does Safaricom, a mere SERVICE PROVIDER, act as judge, jury and procecution in this kind of matter? Safaricom is no bank or police to pass this types of verdicts, especially in a case where the sender didn’t call claiming a refund for products undelivered. Also when do Safaricom really help to reverse payment? Last year I lost 60K after an agent reversal was done after i had already sold and you never helped me! even after many police intervenions and now you want to reverse my money? What the Fuck??!!

After a long discussion, I eventually relented and said they can do whatever, as long as my account was gonna be fine before I leave their HQ. He then said he will recover the money from my balance and activate the account. “But i only have Ksh 47,857 in that account!” I retorted, “Dont worry, we shall take all that, and advice on how we will take the rest.” A piece of me died when hearing this. As they put me on the chopping board, and started stealing my money I pondered where they were taking it. I mean, this is not an ordinary reversal, because the number that sent me the money Daniel Mwangi Mukami of 0704841672, had hitherto, been suspended too. So where are you taking it, because theres no way you can retrace it back to the original owner when the guy that sent me is not in the chain. Thirty minutes later, I was briefed that my line was up and I should be good to go true to that, it was functioning but my MPESA balance was completely wiped out, without a trace. “Where had they sent it?” Reaching home, I requested my MPESA statement and there it was
“Customer Transfer Reversal by M-PESA\DChiri”
They had conducted a REVERSAL to an unknown entiry, not known t me, not spoken of by Emmanuel. They had simply RIPPED ME OFF my hard earned money.

My missive will be ended if you retun my money and explain;
1. What is this “Customer Transfer Reversal by M-PESA\DChiri” why is he the one receiving the reverse?
2. Which law/act allows you to reverse money from your customer without the sender issuing a claim?
3. What if the sender withdrew the cash at an ATM or Mpesa Agent would you have suspended the agent and demolished the ATM?
4. Is my money part of the rewards being gifted in the MPESA-TU promotions? Psych!(I know it is!)
5. Are your customers safe? and do they know this is happening should they only receive money from people they can produce to your HQ in case issues arise with transactions?
6. Who (if any) really lost the original money?
7. Will you handle it in the same way in case it happens in future?
8. Is this your standard procedure when handing such issues? Just suspending a line regardless of being active for 7 years without any disputes?
9. Will the real culprits ever be brought to book?
10. Is part of your team in cohoots with the fraudsters?
Those were just at the top of my mind questions, I have more and would like to engage with someone in Safcom who can help me recover my money back. For now you left me with my dick in my hands, out kSH 47,875, am out of my good too, so thank you very much!

Oooh..I also noticed very many people, on your signing book suffering with the same issue as me, so if you are experiencing this dont suffer in silence, the more we share the faster they’ll address the issue. If they are hellbent on stealing let me be the last one who suffers. No more. Shit hurts. A lot.

Details have emerged on how a murky deal masterminded by a Nairobi businessman could make the Kenya Airports Authority (KAA) lose prime land.

Mr Peter Muthoka, the man at the centre of the CMC Motors saga, secured Sh510 million in April 2010 from Standard Chartered Bank using the land as security without disclosing the terms of the financing facility to KAA.

At the time, KAA had no information on the loan period or repayment terms. As a result, the State corporation risks losing the land within the cargo terminal area at the Jomo Kenyatta International Airport.

Land lease


Through his company, Transglobal Cargo Centre, Muthoka secured the loan on the basis of a 60-year lease granted on the land KAA owns.

Documents in our possession reveal Transglobal now wishes to borrow an additional Sh350 million using the same land as security, and is seeking consent from KAA.

The deal has effectively exposed KAA to the possibility of losing the land in case Transglobal cannot repay the loan.
 Alternatively, KAA would have to take over the loan to save the land because it was kept in the dark on the nature of risk assumed by Transglobal was concerned.

“The charge documents do not disclose the terms of the financing of the facility and therefore the Authority has no information on the loan period, repayment terms, conditions for drawdown,” states a letter by KAA lawyers addressed to Joy Nyaga, KAA acting company secretary.

Moreover, the letter seems to question how KAA agreed to the long-term lease on the land with limited options to terminate it.
According to the lease agreement that commenced on October 1, 2008, Transglobal was granted the land for an initial period of 20 years and automatic extension for another 20 years “without the requirement for the tenant (Transglobal) to express any intention to have the initial term extended.”

Lack of response


The agreement further states KAA shall grant Transglobal a further 20 years meaning the lease can extend to 60 years at the option of Transglobal.

Calls to Peter Muthoka’s cellphone went unanswered.
 Besides, KAA agreed into the long-term concession without taking into account that Transglobal could fall into financial difficulties and be liquidated or restructured.

“The authority has no right to veto the transfer of shares in Transglobal to third parties. For 60 years, the power of decision making over the part of the Authority’s land has been handed over to persons who are not under the Authority’s control,” states the letter.

Transglobal Cargo, which is licensed by KAA to provide cargo handling services at JKIA, procured the loan in 2010 ostensibly to construct a cargo handling facility at the airport on a build, operate, transfer (BOT) arrangement.
Although naturally at the expiry of the lease KAA would inherit the new building, this is not a guarantee.

“The Authority does not appear to have rights to acquire the fixtures, plant and equipment, which form the core of the cargo handling business,” states the letter by Albert Mumma and Company Advocates, commissioned by KAA to investigate the transaction.

STORY UPDATED

A parliamentary committee  has resolved to summon the Treasury secretary, the National Land Commission and a commercial bank to explain how an airport land title was used by a private firm to secure a loan of Sh510 million.

The Public Investment Committee (PIC) said Standard Chartered Bank will be required to appear before it to provide the legal authority it used to extend the loan to Transglobal Cargo Centre Limited.

PIC grilled the Kenya Airports Authority (KAA) managing director Jonny Anderson over the lease agreement that it entered with Transglobal Cargo for use of Jomo Kenyatta International Airport land.

This is after Auditor-General Edward Ouko said in an audit of KAA that the logistics company, associated with billionaire businessman Peter Muthoka, secured the charge on airport land for a Sh510 million loan from the Standard Chartered Bank.

“We will summon the CS Treasury, NLC and Standard Chartered bank to know how Transglobal secured an I.R number which it used to secure the loan without the authority of the Treasury. We also want to know how the original lease of 20 years was extended to 40 years and latter 60 years,” PIC chairman Abdulswamad Nassir said.

He said the committee wants to establish from NLC whether the I.R number had been used to acquire a title deed for the leased airport land.

PIC put Mr Anderson to task to name the persons who authorised the use of the lease to secure the bank loan and those behind the extension of the lease period from the original 20 years.

“I am not in a position to respond if the extension of the lease was approved by the board or not. But we can provide the name of the managing director and members of the tender committee who approved the 20 year lease to Transglobal,” Katherine Kisila, the KAA company secretary told MPs.

Transglobal Cargo Centre signed the 20-year lease agreement with Transglobal to operate freight services at the Jomo Kenyatta International Airport.

Across the world, rail transport dynamics are essentially market-driven, with the customer, and in the SGR case the cargo owners, having a major input. But the Kenya government last month directed that all imports coming in through the Mombasa port be transported by the SGR, setting off a round of protests from businesses.

Manufacturers, who make up a substantial number of the cargo business clientele, have also noted that outside of the storage costs, the train’s ability to move bulk freight is limited. One of the main challenges they have is that the current line does not have the capacity to haul bulk cargo which disadvantages us. They are also at a disadvantage, especially that the last mile element is missing. The old meter gauge line offered direct access to heavy clients’ bulk cargo.

At the port, CFS owners and the clearing and forwarding agents, say such orders will kill their business, as importers will have to liaise with new service providers to access the Embakasi ICD.

The authority’s mandate is to maintain, operate, improve and regulate all scheduled seaports situated along the inland container depots. KPA a statutory corp was created under section 3 of KPA act ( cap 391, Laws of Kenya ) and was established on 20th January 1978. Over the years capacity constraints at the port of MSA have been a major hurdle in ports operation as cargo imports have always surpassed yard holding capacity against the backdrop of poor cargo offtake to the hinterland.

The CFS( Container Freight Station) came into operation a decade ago in a bid to ease congestion at Mombasa port, which saw ships charged for delayed cargo deliveries, and these costs passed on to clients.

Traditionally, importers negotiate with clearing agents to get at least a month of free storage of their cargo and this is what KPA and Kenya Railways need to address to attract the much-needed cargo. Within the KPA system, storage is a very expensive affair. For instance, the fine for a 20-day storage within the port is $2,100. You cannot attract importers by dangling cheap freight charges, then force them to pay high storage charges. It doesn’t make business sense.

CFS business is made on volumes moved from port to customers’ premises and that is why the government directive is hitting their bottom line hard. They attract clients by not only charging less for storage but also giving incentives. It is seamless when they work with clearing agents and it is this wholesome package that endears clients to them.

The investment of setting up a CFS is huge and applicants went through a tedious vetting process to comply with statutory requirements. Requirements are Minimum yard capacity of 4000 TEUs full cabro paved, standard perimeter wall required by KRA which we estimate the land size as 10 acres n above.

The modern facilities built by CFS operators have equipped modern office blocks for staff and resident government agencies and public amenities minimum four dedicated equipment for handling containers. The reach stackers of repute make, certified and locally inspected as required by authorities cost each ksh 75M, thats Sh300M investment. High massive masts for lights, security systems is a must requirement and must be handed over to KRA officers who are custodians of cargo at CFS and control entry and exit gates.

Also must comply with KRA requirement in relation to bonding, good in transit bond, warehousing, transit and security insurance among other translating to over ksh 15M annually. All the investments highlighted above over 1.6 billion. Its a cost each CFS paid to operate

All the CFS ‘ invested in trucking business to shunt containers from KPA within 48hrs as specified in the contract and take cargo xhook from vessel to allow quicker vessel turn around. Must invest in the communication system, control of documents through electronic data interchange (EDI) which puts all stakeholders handling cargo in the same wavelength and track info thru shared platform.

Combined, CFS has employed 8000 directly and in existing contracts with suppliers for their machines, office supplies, consultants, training institutions, security companies, cargo surveyors, cargo insurers among others. There are 22 gazetted CFS currently and are registered with KPA and are regulated by government agencies namely KPA, KRA, KMA.

CFS ‘ as an extension of port with public authority status, equipped with state of the art facility and equipment offers services of handling cargo, temporary storage of import, export loose cargo, motor vehicle, project cargo all carried and operated under customs control. In additional CSR programs initiated by CFS’ including Scholarships, Internship programs, Built rehab centers, Support orphanage homes, Engaging locals teens & support their Football and other games are now all at stake should this business fail to materialize as it stands.

Most progressive countries give tax holidays and other incentives to their local investors yet we are killing ours. The MD of KPA advised the government on the need for CFS but they tried to use force but in only two days the yard at the ICD was full. The ripple effects of killing such an industry that me livelihoods depend on is inhuman.

Talking of which, I can’t help but empathize with CFS investors many of whom I suspect took loans to own the Sh1.6B setup capital. How are the 22 gazetted stations going to service their loans? I think the SGR cargo debacle would’ve been avoidable of authorities engaged and consulted all stakeholders in the industry to avoid these inconveniences and I believe its never too late.

The Board of Directors of Tiger Brands has announced its decision to dispose of the company’s 51% stake in its Kenyan business, Haco Tiger Brands (E.A.) Limited (“Haco”), which it acquired in 2008.
According to Tiger Brands’ CEO Lawrence Mac Dougall, the company took the decision to sell its interest in Haco after a detailed review of the business was conducted, along with its partner, Dr Chris Kirubi. “The review evaluated the Haco
business in the context of its mutual alignment with Tiger Brands’ long term strategic focus and core competencies. In addition to products manufactured and marketed by Haco under its own brands, the majority of Haco’s business lies in the manufacturing and distribution of products under licence. This is not aligned with our current operating model which is premised on full ownership of leading FMCG
brands.”

This has culminated in Dr Kirubi, who holds the balance of the 49% of the business,
making an offer to Tiger Brands to purchase its 51% shareholding at a price that
was considered fair and reasonable. Tiger Brands accepted the offer. “We thank Dr Kirubi for his invaluable insight and contribution to Haco over the past 9 years and are confident in Haco’s prospects under his leadership,” says Mac
Dougall.

Dr Kirubi commented on the partnership with Tiger Brands and the quality of engagement with the leadership team. “The partnership with Tiger Brands has been professional and constructive over the years and I am pleased with how we have managed this transaction. I have always been passionate about Haco’s success and I remain fully committed and dedicated to its growth and progress. My Board and I, together with our dedicated staff, look forward to driving the next chapter of
Haco’s growth and innovation as Haco seeks to meet the needs of the growing and discerning market in Africa and beyond.”

The agreement relating to the disposal of the shares is subject to a number of suspensive conditions, including receipt of the necessary regulatory approvals in Kenya.

Top executives of Haco Tiger Brands, a Kenyan subsidiary of South Africa’s Tiger Brands overstated the firm’s performance to show they were excellent performers deserving great rewards. The tricks that the Kenyan team used to earn more included;

Managers pre-invoiced sales and moved stock to third party warehouses to make it appear as if they had reached their performance targets. They altered financial statements to look impressive. The team also falsified operating profits by more than Sh879 million. As a result of the manipulation: The managers were praised for sterling performance and consequently earned huge bonuses.

Discovery of the falsified accounts and the need to rectify the position reduced the group’s earnings for the half-year results for the period ending March 2015. There are several ways in which companies can falsify accounts and various reasons why they do so.

The first one is where a company’s management, at times in collaboration with its auditors, inflate revenues or artificially decrease expenses. These alterations paint a healthy image of the company, which in turn keeps investors happy and could also be used to justify hefty increases in salaries and bonuses for top managers.

Profit alterations also work in the reverse. Accountants deflate a company’s income or exaggerate the expenses, making a company come off as performing poorly than it actually is.

Tiger was previously bullish about the Haco partnership, but has over the past two years soured on the investment, starting with the discovery of what Tiger said was an R106 million (Sh845 million) fraud at the company in 2015. The accounting fraud that came in the form of pulling forward sales and falsification of stocks, cost the multinational R50 million (Sh400 million) at group level as the subsidiary sunk into an undisclosed loss in the year ended September 2015.

Tiger shared that loss with Mr Kirubi, pulling its after-tax profit down to R942 million (Sh7.5 billion) from R1.8 billion (Sh14.3 billion) the year before.
Haco immediately fired executives associated with the financial scam, putting Mr Kirubi who had rooted for Kenyans to retain top management roles at Haco in a tight spot.

The executives were accused of overstocking major distributors to create the impression that they had met their performance targets. The consistent fraud scheme is believed to be the reason behind termination of the deal even though Kirubi is floating the lie that he bought back the shares. Kirubi mismanagement is attributed to the fall of big companies as Uchumi,KENATCO and has been described as a scheming businessman. The South African partners opted out before the entire house could be brought down with fire which has been his trademark in key companies he has run.

 

The Cheza Games Saga has been around for Quite some time, With Kenyans demanding for their refunds from Safaricom after they were exposed as Biggest Scammers to ever steal from Kenyans.

Exclusive News reaching Kenya Insights indicate that Safaricom-Owned Cheza Games has Partnered with SpiffX AB, Swedish Fraud Company.

SpiffX Malta Ltd with license no LGA/CL3/851/2012 given by Malta Gaming Authority den 26 April 2013. This company will not pay taxes in Kenya as the structure of the tax system allows newly established businesses or those making FDI´s Foreign Directive Investments certain tax rebates & concessions that can last up to 10 yrs with profits simply sent to the offshore companies as payments for loans from the mother company or concern holding group or as royalties. Dig & you will find.

Credible sources indicate that some Senior Safaricom Managers own Cheza games and they are the ones that Colluded to defraud Kenyans Billions in Cheza Games Saga. Probably why nobody has been Charged or arraigned in court to answer for the Charges because there was indeed Fraud.

What is with Safaricom and Tax Evasion Havens? Last Year, Popular Publication The Nairobi Law Monthly Exposed what they termed as ” Mpesa Grand Heist.”

Under the banner “M-Pesa Comes Home,” propaganda was generated suggesting that Safaricom was migrating its platform from Germany to Kenya. In fact, it was purchasing a new system (at an undisclosed sum) and re-writing the intellectual property rights over M-Pesa, completely delinking M-Pesa from its Kenyan roots and moving all profits from M-Pesa to a tax haven and out of reach of the country’s revenue authorities.’

EyeBrows have been raised over SpiffX AB which has only two employees in Sweden, and All gaming & betting activities are done from this offshore daughter firm called SpiffX Malta Ltd with license nr LGA/CL3/851/2012 given by Malta Gaming Authority den 26 April 2013.

This company will not pay taxes in Kenya as the structure of the tax system allows newly established companies or those making FDI´s Foreign Directive Investments certain tax rebates & concessions that can last up to 10 yrs with profits simply sent to the offshore companies as payments for loans from the mother company or concern holding group or as royalties.

This means Kenyans will not benefit at all courtesy of Safaricom, which has come under intense pressure from Kenyans to stop fraud from within and do something about daily Managerial hubris.

This Cements up an article that appeared in the Guardian where the Writer was questioning Aid to Africa. The Writer noted that the flow of money from rich countries to developing countries pales in comparison to the flow that runs in the other direction. The Guardian Article had a good argument that further noted that In 2012, the last year of recorded data, developing countries received a total of $1.3tn, including all aid, investment, and income from abroad. But that same year some $3.3tn flowed out of them
” Most of these unrecorded outflows take place through the international trade system. Corporations – foreign and domestic alike – report false prices on their trade invoices in order to spirit money out of developing countries directly into tax havens and secrecy jurisdictions, a practice known as “trade MIS invoicing”. Usually, the goal is to evade taxes, but sometimes this practice is used to launder money or circumvent capital controls.” What the Safaricom-Owned Cheza Games in Conjunction with the Swedish Fraud Company are trying to do. ”

The writer Finally notes that Poor countries don’t need charity. They need justice. And justice is not difficult to deliver. We could close down the secrecy jurisdictions, and slap penalties on bankers and accountants who facilitate illicit outflows the same thing Safaricom did in the Mpesa Grand Heist.

The story of Safaricom and Tax Havens doesn’t stop there. The Panama Papers Leaks revealed that Mobitelea Ventures Limited is registered in Guernsey Island, the home of corruption, money-laundering and tax evasion in the world. Mobitelea was registered in 1999, and the company’s real owners are behind two nominee firms, M/s. Mercator Nominees Limited and M/s. Mercator Trustees Limited with M/s. Messrs Anson Limited and Cabot Limited both registered in Anguilla and Antigua. The Mobitelea Story narrates a story of how Vodafone Stole 10 % of Safaricom after bribing Several Kenyan government officials including Mps . Maybe a story of another day.

How comes Safaricom Works with all these Fraud Companies if they do not work together ? Big Question.

 

Airtel comes second after Safaricom that commands a 65% market share. The company has been fumbling to sustain stability given dominance by the competitor. Israel has gone through the metamorphosis since entrance in a market. For close to a decade, The company has been fighting to maintain its position in the market with difficulty. Safaricom has been accused of unethical business conduct by using their dominance advantage to make it nearly impossible for rivals to stand firm in the industry.

Airtel has been registering huge losses and now there are credible fears the firm Could Be exiting the hostile Kenyan market made impermeable by Safaricom’s bullying. The company has laid out restructuring strategies including laying off staff.

The Indian-owned firm has just laid off nearly a third of its staff in an alarming hasty move. Sources said the company is sending home 84 workers in this phase. In the past two years, Airtel Kenya, which has about 300 staff, retrenched more than 60. The laying off is to be done in phases, and the staff is worried more dismissal letters would be on the way.

According to Standard’s sources, Airtel has already started off selling its assets as masts in readiness for a market exit. Sources said some departments such as Airtel Money, Enterprises, Customer Service and Sales and Distribution would be merged. The firm is also said to be planning to abandon its warehouses in Nakuru, Kisumu, Eldoret, Mombasa and Nyeri with everyone now being served from Nairobi.

The going has been tough for Airtel which between April and June lost more than 130,000 subscribers. According to data from the Communications Authority (CA), Airtel’s subscriptions dropped from 6,722,412 in March 2016 to 6,588,825 as at the end of June 2016, as the operator relinquished 0.9 per cent of its market share.

Airtel last year laid a good marketing strategy introducing Unliminet that targeted the growing data market and placed it high on the bar. It gained the firm New customers especially the youths. However, they disassembled the initial packages by slashing down it’s elements sending most of the acquired customers to drop it. Will Airtel stand the hit or hit out? Equitel by Equity Bank is being floated as the potential buyer.