- There is too much idle cash in the economy. Hence the inflation of 11% before the general elections. Interest rates are not the panacea they because that will stifle growth. Lakini ways must be found to tap into that cash.
- Kenyans by the millions will invest in profitable opportunities. Again the pyramid phenomena of 2006 & early 2007 and success of even funny IPOs like Everready is testament to this.
- So, the alternative strategy is to offload more of its holdings in various parastatals. Two that immediately come to mind are Kenya Pipeline (PBT has increased from Ksh524m in 2002/3 to Ksh2.9bn for 2006/7) and Kenya Ports Authority (made Ksh2.5bn for 2007). Kenyans can relate to both and they know that they are profitable.
- There are many projects that only lack funding because they've not been priced correctly or have no exit routes. The ever-present road-building. Why not use tolls and create a company that Kenyans can invest in? There is electricity generation; Nairobi upgrade (you don't sell an idea by calling the "Zero" draft!).
Thursday, May 29, 2008
How to keep Kenyans interested
Having seen the success of Safaricom IPO, I hope GoK and every investment body realises that;