MP’s Budget Guide 2011/2012

The Government Financial Year 2010/11 comes to a close today June 30, 2011. Tomorrow, July 1, 2011 marks the beginning of the Financial Year 2011/12 and for those in Kenya know the Finance Minister recently read the budget for this year.

Here is a link to the MP’s Budget Guide 2011/12 prepared by the Institute of Economic affairs. Consider it  a useful resource in the new financial year. 

Trans-Century at Mind Speak

May’s edition of Mind Speak saw Transcentury parade itself in this monthly forum (which I regularly attend) organised by Aly-Khan Satchu a Financial Analyst who runs rich management

This was coming head over heals of April forum that had President of Uganda H.E. Yoweri Kaguta Museveni as the Guest speaker. What is fascinating about this company is that it is a company founded by 29 prominent personalities. These personalities have been accused of either being too close to the center of power or have used their positions to acquire contracts or use privy info BUT they have defended themselves as people who have acquired their wealth genuinely and in a range of counties in the region.

To pitch for this company Transcentury were; Dr. Gachao Kiuna (CEO) and Yida Kemoli (Head of Finance and Corporate Strategy).

Background of Transcentury

The CEO Dr. Gachao gave us a brief history of this company. It was started by 29 people (all men) who used to meet informally in what in Kenya we call ‘chama’. They all agreed to each contribute Kshs 1 million. So they expect to have an initial capital of Kshs 29 million however they ended raising Kshs 24 Million.

Their initial investment was in South African Breweries which had entered the Kenyan Market in 1998 only to close in 2002 after four-year beer war with Kenya Breweries and failing to secure a 10% of market share.

These investors managed to recoup their investment from SAB due to the fact that SAB pulled of the market by a negotiated settlement with Kenya Breweries Ltd (now East African Breweries Ltd, EABL).

Having learned from this experience the 29 vowed never to go for anything less than controlling stake in a company (51% of the share capital).

Present Day Transcentury

The 29 investors formed Transcentury which is a Holding company with interests in;

• Power Infrastructure: Manufacture of Electrical Cables, Conductors, Transformers and Switchgear. 
• Transport Infrastructure: Operation of the Kenya-Uganda Railway Concession.
• Specialized Engineering: Distribution of Mission-Critical Industrial Equipment and Construction of Electrical Installations.  

The company has pan-African interest in outlook i.e. it wishes to invest in the whole of Africa and that is why as I came to find out it was at the event because it wants to list on the Nairobi Stock Exchange (NSE).

The company has 5 divisions i.e. Power Infrastructure, Transport Infrastructure, Specialized Engineering, Consumer and Affiliated Holdings.

Reservations

The company has raised some eye brows with its Transport Infrastructure division with people questioning the way it got into the concession of Rift Valley Railways (RVR) and the two guest speakers had a hard time convincing us. However, they had their side of the story.

The company seems to hedging on the railway considering it is has entered into partnership with a Brazil Railway company America Latina Logistics (ALL).

The other eye brow is that the company can’t seem to send away the ghosts of the 29 investors who as some would put it could raise the issue of ‘conflict of interest’ given that some of them are CEO’s of some of the divisions the company engages. To this the CEO pointed out that some of their major customers are you and me (ordinary folk) and NOT government parastatals.

The other observable omission in the company which was observed by Gina Din was that the company’s 29 investors are all men!

Going Forward

In the infrastructure sector given that most of the infrastructure building is done by Chinese Companies funded by China gov’t which has shown that it is willing to fund states improve their infrastructure. Does Transcentury know anything that we don’t? (A query raised by one of the participants).

Only time will tell however, should you want to know more about this company the CEO Dr. Gachao Kiuna asked the participants to visit any Dyer & Blair.

Presentation at Mindspeak (Pdf)

Launch of 'Policy' by IEA

The Institute of Economic Affairs today (December 1, 2010) launched a journal going by the name 'Policy'.

Some of the things highlighted at this morning launch were the rationale behind it. As Irene Kinuthia, the Media & Communication officer at IEA put it. This is another avenue IEA has ventured into provide an avenue for IEA members and associates, professionals, researchers and general public to influence public policy through research, provide cutting edge information on public policy and provide policy makers with useful information to guide policy reforms.
IEA is looking looking to print this journal Annually

The articles on the Journal aim at reporting progress made in implementing specific policy reforms as is the case in this issue in which Limo Taboi who also goes by the name Bankelele on the blog-sphere addresses 'After the Promise: The Economic Sector Reforms in the Early NARC years'.
The journal also seeks to communicating research findings on a particular public policy issue in a reader friendly manner as is the case on 'the (Un) Employment Problem in Kenya: Not so Simple Answers' done by Jacob Omolo. This is hot on the hills of the launch of a publication The dynamics and trends of Employment in Kenya in the Month of November.

Some of other things to find on this journal are;

• Formal soulutions for informal problems
• Ordinary citizens addressing crime
• Biodiversity and role played in economic development
• 2 book reviews

Also in there is photography from Boniface Mwangi of Picha Mtaani fame on the article of 'Reforming the Police in A Fractured Society: Are Kenya's Police reforms Mistaken?' by Rachel Gitau.

The next issue will focus on Regionalism and they have a call for articles on their website. The other interesting thing is that IEA has started a blog. This is a first one. Am still waiting for KIPPRA to start one!

Betty Maina the chairlady of the IEA was at hand to officially launch the journal and pointed out that IEA has been here with us for 15 years facilitating policy debate. Giving a platform for the public to express alternative policy issues and seek just policies.

Global Human Development Report 2010 Launch

Kenya being the seat of United Nations Development Programme (UNDP) was among the countries that were launching the Global Human Development Report 2010 on November 4, 2010. The GHDR 2010 launch were taking place simultaneously around the world with the main launch  going down at the seat of United Nations (UN) in New York City (NYC). The main launch was graced by the Secretary General Ban Ki-moon and Nobel laureate Amartya Sen since this HDR was celebrating 20years since inception as an alternative to Gross Domestic Product (GDP) as a measure of annual growth.

Global Human Development Report 2010 cover

Kenya’s Launch was historic in a way because it was held in a University. This was the first launch of a United Nation’s Report at an institution of higher learning. This was after successful launch of a book (Delivering Aid Differently) by the lead Economist at World Bank, Kenya Mr. Wolfgang Fengler.

The following were some of the highlights that I picked at the launch;

The launch began at 1630hrs and the Master of Ceremony was the charismatic George Outa from the Prime Minister’s office, communication department. After the pleasantries from the University which was represented by Prof. Mbeche (Principal CHSS) at the launch, the programme kicked off.  

Mr. Aeneas C. Chuma, UN Humanitarian and Resident Coordinator in Kenya and UNDP Resident Representative was first on the podium. Mr. Chuma an Economist with a specialty in Macro-Economics talked briefly about Human Development Reports in Kenya. He talked in passing about the introduction of new measures i.e. HDI & GDI and how such indices went beyond measuring the traditional measures of poverty.

He stressed that HDR seek to know how people can live life to fullest by inquiring on aspects such as education, employment and health.

He also pointed out that Africa’s main problems are week institutions and political instability.

Next the Video below was screened (mind you with some technicalities!)

Dr. Tegegnework Gettu who is UNDP Assistant Administrator and Director, Regional Bureau for Africa took the podium.

He pointed out Human Development Reports were Flagship projects of UNDP and this being the 20^th anniversary it was time to celebrate, to reflect and also to be humble.

He also asked what have we learned aver the 20 years-Give people more choice and freedom

Prof Hose a consultant from head office but from Venezuela had been flown in just for the launch to explain to us about this report.

The Prof. took pride at being at the University and took us through the report. The cover we learnt were Worldwide Trends in the Human Development Index from 1970-2010.

The report also focuses on the evolution of HD over 40 years (which give different insights) especially on Human Development. It was also clear from the report HD has increased over time except for three nations (Zimbabwe, DR Congo being some of them)

Some of the new things in the report are 3 new indexes i.e. Inequality Adjusted Index, Gender Inequality Index and Multidimensional Poverty Index.

What we should think beyond 2010?

1. Take contact seriously
2. Think Principles first
3. Shift global Policies & Governance

He concluded that People are the real wealth of nations.

Mr. Peter Kenneth who was guest of honour gave his prepared speech and afterwards officially launched the report

The vote of thanks was given by a representative from Sweden (SIDA). She did point out that the year 2000 report was the most radical i.e Human Rights and Development.

The launch came to a close at quarter to seven.

RESOURCES

Download Report from UNDP site
Photo Sream on Regional Launch of the 20th Anniversary Edition of the Global Human Development Report at UoN