Key driver will be the huge and ballooning deficit. I think we are somewhere north of the Ksh109bn that GoK plans to raise in the market. And that may not factor in contingency funding for droughts, floods et al; one-off hits such as the planned Census in August and the katiba referendum. Therefore:
Divestures:
25%+ of NBK will be sold to Equity and others. One reason to put some cash into the share as addition of NBK would make Equity undervalued on forward P/E basis.
New KCC
KPL was a shoe-in candidate a year ago. Not so sure given all the foregoing with KCB and the like.
In which case, KPA, KenGen 19% may have to come into play.
Outliers will be the likes of New KCC in 2010 and private sale of stake in KWL.
Flood of Bonds:
Well GoK has already said it wants to bring Ksh109bn into market. Cue good income for StanChart and other bond hounds. The downside is that the accompanying liquid sucking up will either have to be solved by higher interest rates or CBK reducing banks' reserve ratio. And of course, reduced lending which may be the exact shot in the arm the economy needs right now.
Sin Taxes:
Shoe-in
Lip-service to reforms:
I dream will get a much needed financial services regulator; increase in banks capital requirement to Ksh2.5bn; a halved cabinet (politically easier to do this than to get MPs to pay taxes). But I think we'll get something small on NSE, the annual "reduction" in car spend.
Showing posts with label New KCC. Show all posts
Showing posts with label New KCC. Show all posts
Wednesday, June 10, 2009
Wednesday, September 05, 2007
Parastatal Special: New KCC
In many parts of Kenya, KCC and KMC are the two avenues (the only two in some areas) that the local population can earn any regular and guaranteed coins. The on-going efforts to resuscitate the two is thus strategic and a boon to local economies .
KCC was established in 1925 to provide a market for Lord Delamere and the like of their produce. Over time, KCC grew to become a monopoly whose reach extended beyond providing milk to the urban population to social engineering in form of UHT milk to entice kids from arid areas to go to school.
In semi arid and arid areas especially, KCC's role in general development cannot be underplayed. In Endarasha, Kieni (tends to be dry due to being on the leeward side of Mt Kenya) for example, apart from providing them with regular monthly income, dairy farmers grouped themselves into a cooperative which among other things came up with a water project that brought piped water from the Aberdare Ranges to each household, a tractor for smoothening the local murram roads and so forth.
Either by design or sheer incompetence, the former regime managed to rundown KCC and then lo and behold privatised it with most of the shares going to Moi (via lawyer Kenneth Kiplagat). Other companies (prominently Uhuru Kenyatta's Brookside Dairy) stepped in to fill the void.
Since 2003, the now renamed New KCC has arisen and is now picking up in market share on both supplyside and sellside. With an experienced business head of Matu Wamae and the youthful energy and marketing experience of 37 year-old Francis Mwangi ,New KCC has moved to recapture lost market share, re-consolidate milk supply and is now moving regionally and even to Middle East with recent orders from Yemen.
Its rejuvenation has been a boon for local economies such as Endarasha,where farmers had moved onto the more volatile horticulture farmers.With good prices and guaranteed payments farmers, are now in the midst of an electrification programme. They also recently announced plans to join 5other cooperatives and start a processing plant for the whole of Kieni.
New KCC intends to list in 2009.
KCC was established in 1925 to provide a market for Lord Delamere and the like of their produce. Over time, KCC grew to become a monopoly whose reach extended beyond providing milk to the urban population to social engineering in form of UHT milk to entice kids from arid areas to go to school.
In semi arid and arid areas especially, KCC's role in general development cannot be underplayed. In Endarasha, Kieni (tends to be dry due to being on the leeward side of Mt Kenya) for example, apart from providing them with regular monthly income, dairy farmers grouped themselves into a cooperative which among other things came up with a water project that brought piped water from the Aberdare Ranges to each household, a tractor for smoothening the local murram roads and so forth.
Either by design or sheer incompetence, the former regime managed to rundown KCC and then lo and behold privatised it with most of the shares going to Moi (via lawyer Kenneth Kiplagat). Other companies (prominently Uhuru Kenyatta's Brookside Dairy) stepped in to fill the void.
Since 2003, the now renamed New KCC has arisen and is now picking up in market share on both supplyside and sellside. With an experienced business head of Matu Wamae and the youthful energy and marketing experience of 37 year-old Francis Mwangi ,New KCC has moved to recapture lost market share, re-consolidate milk supply and is now moving regionally and even to Middle East with recent orders from Yemen.
Its rejuvenation has been a boon for local economies such as Endarasha,where farmers had moved onto the more volatile horticulture farmers.With good prices and guaranteed payments farmers, are now in the midst of an electrification programme. They also recently announced plans to join 5other cooperatives and start a processing plant for the whole of Kieni.
New KCC intends to list in 2009.
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