Mavuno Securities

The expectation of it all

It seems companies in Kenya are piking up the bug to get listed. I read in today's EA Standard, Family Finance has also decided to convert into a fully fledged bank, issue shares to directors, employees and account holders. The newly constituted shareholders will thereafter get the opportunity to trade their shares on the NSE probably sometime next year. The statement was made in Kisii where the company opened its twentieth branch.

Interestingly the chairman announced they had no interest in attracting foreign investors and wanted to remain local. More crucially I wonder if it is a good thing for all these rural finance institutions to convert into commercial banks, take on the increased regulatory costs and presumably lose focus on thier core client base? I suspose they have considered all the associated issues, but I hope the poor rural folk do not lose out. They have very limited financial services targetted at them as it is already.

On a different note things are looking up for next year. All manner of records are set to be broken in my view and Kenya could be fast approaching the 500,000 individual shareholder mark. Elections - expect a high spend year with good numbers to be reported for media and some consumer good companies. Also the NSE should see bouyant activity.

I'm now trying to figure out the best computer option and leaning towards buying my office one from the company and installing some open office software - its free. Will keep you posted on this.

Planning the move

It is now two weeks since I decided to quit and the amount of things I have to do to get back home are just impossible to get through and still remain sane. Sell the house, settle all bank debts, finalise with the South Africa tax man, pack and ship stuff, move my people - then get a place in Nairobi, clear customs in Kenya (ouch!), get a school for the son etc I just hope I'll be sane enough in early December to figure out what is really happening at the NSE.

But at least and without a doubt I'll be on a goat's case in December and all frustrations, tribulations will be soothed each time I down a tasty mutura! Aaahhh, I can smell it now.

I hear Mumias will be selling shares soon, Olympia might go for a rights issue to fund a purchase of additional shares in a Botswana Stock Exchange listed subsidiary that in turn wants to buy a South African blinds making factory! I generally don't like pyramid corporate structures and will take a long detailed look at this company. I also hear Diamond Trust Bank will be issuing a rights offer - seems bank's capital bases in Kenya are sorely stretched after they discovered that it is actually possible to lend money in Kenya. All the best of luck to them. The government also wants to sell Kenya Re on the exchange - I don't know much about this idea ...... My only question is where is Telkom?

Kenya is cooking!

Getting it together

This week I've read a great book (The long tail). If you are interested in how markets have beome more efficient and to hear a really good argument that the retail end of the market is profitable please read this book. I'm that more convinced there is a case for retail based financial services company in Kenya and probably in other countries in Africa as well. Think about it - to start investing in a mutual fund in Nairobi you need an initial investment of Ksh.50,000 (approx $700)! Surely there must be an opportunity here.

In the begining

After 5 years working in South Africa I've finally decided to call it a day. I'm now ready to move back to Nairobi to start on the next phase of my life's journey. My greatest desire that will drive me from now on is to make it possible for anyone to own a share on the Nairobi Stock Exchange (NSE). I want to see a Kenyan people familiar with owning shares and the idea of selling their own companies on the exchange. I have some experience in the market having entered in March 1996 during the share offer of Kenya Airways and have developed some skills in research since then. I left Nairobi in June 2001 when a friend of mine suggested I join him in a company (www.liquidafrica.com) he was launching in Johannesburg. I handled a bit of everything and there I learnt how hard it is to focus on the big picture when starting out on your own. I later joined Standard Bank in November 2003 in the economics team where I learnt how valuable considered opinion can be to investors. Today the first day of October 2006 I'll hand in my resignation letter and start an uncertain journey back to the NSE. From what I gather the market is alot bigger than I left it 5 years ago, I fear I may not have a clue what to do when I get there. I'm however confident that my next phase in life will have to continue in Kenya. It's time to roll up your sleves and dig in to the opportunities that are openning up. I left with a new wife (9 mths) a new son (3 mths) and I return with a not so new wife, an older son and another son (3 mths). I pray we'll love it back home.