Proposed Acquisition Of Vipingo Estate Limited

REA VIPINGO PLANTATIONS
LIMITED
PUBLIC ANNOUNCEMENT
PROPOSED ACQUISITION OF VIPINGO ESTATE LIMITED

REAVipingo Plantations Limited ("RVP") announces that it has agreed to acquire the whole of the issued share capital of Vipingo Estate Limited ("VEL').

At the time of RVP's formation in 1995, the land owned by VEL was split into two parts: the Vipingo Estate (incorporating substantially all the areas at Vipingo under sisal) which was acquired by RVP from VEL at that time and other land which was retained by VEL.

Subsequently, VEL has divested much of the land area which it retained but certain parts remain. These include an area of approximately 330 hectares on which, by agreement with VEL, RVP currently cultivates sisal. The land retained by VEL also includes a number of plots close to the Indian Ocean. In the opinion of the directors of RVP, acquisition of these assets through VEL will provide a useful addition to RVP's Vipingo estate.

The directors contemplate that part of the area close to the ocean can be developed to provide new management housing for the estate to replace existing management housing which is held on leases which will expire within 2 years.

The consideration for the acquisition is estimated to amount to $5.3 million but will be subject to adjustment by reference to the assets of VEL at completion. The consideration will be settled as to an estimated $2.1 million in cash and as to the balance by assumption of liability for repayment of balances owed by the vendor and its associates to VEL

The net assets of VEL at completion will comprise the property assets and receivables from the vendor and its associates referred to above, together with other short term receivables and cash with a projected aggregate book value of $6.3 million.

By Order of The Board
Nairobi
1st August 2008



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Mutahi Ngunyi: Who will midwife the new Kenya?

Whenever I think of January this year, I get the shivers. Not because it scares me, but because I cannot process the madness we went through as a country.

On my part, I considered buying an illegal gun – even a bazooka. I was prepared to decimate any aggressor on my path, seriously!

Then I realised that I was not alone; most of my friends had the same ‘‘evil’’ thoughts. The intention, I must clarify, was not to protect our tribes. We wanted guns to protect our children.

But this good intention did not make us less mad. My buddies and I were as kukus (chicken) as the fellows who burnt a church in Eldoret. There is a twist to this logic though.

Are there chances that the country was not mad after all? That what we are calling madness was plain evil?

I ask this question because in politics, nature does not abhor evil, it actually embraces it. By extension, therefore, it assumes that all men are evil. And, given a dark opportunity, men will kill and maim illogically. In sum, men never do good except out of necessity.

If this is true, therefore, we must ask this question: was our January experience inspired by evil? In my view, it was.

But borrowing from the Roman experience, there was nothing wrong with this. Rome was built through riots, ruthless killings and savage confrontations between opposing camps.

In fact, lasting states are founded through violence and Kenya is no exception. Unlike Kenya, however, the Romans did not appoint irrelevant commissions to investigate the causes and effects.

Their focus was on the good generated by the violence. And this is where we have missed the point.

Despite the violence and the shake-up, nothing has changed. The January turmoil has not taken us to a higher ground as a country.

And this is probably because we stopped the struggle prematurely. Maybe the country was pregnant with something; a new order of things. And maybe the political shake-up was a sign that something new was afoot.

But we had to abort the emerging order in favour of power sharing. Now we have a ‘‘ceasefire’’ government that passes for a grand coalition; a forced ‘‘unity of opposites’’ that pretends to be one.

In other words, we are just buying time with this coalition. Should anything snap, we will degenerate to the January acrimony.

More so because the issues that drove us to a near state of war have not been resolved. Where am I going with this?

In January, something happened and it has to be concluded. This was not about including Mr Raila Odinga and his buddies in the Cabinet. There was a higher ideal than that.

In my view, what happened was the abortion of a new Kenya. And the problem is that, although painful, moments like these are very rare and precious.

But because our leaders were hungry for positions, they squandered it through power sharing. Their lack of statesmanship made them rush for a half-baked coalition with no legs.

Now we have to start all over again in search of a new order. The question now is this: who will midwife the new order? Who will deliver the new Kenya? A Kenya with a new constitutional and economic order; one with an equitable distribution of wealth and opportunities?

Let us begin with President Kibaki. Can he be the midwife? The answer is an absolute no. End of discussion.

What about his blue-eyed boys -- Mr Uhuru Kenyatta and Mr Kalonzo Musyoka? In my view, the two represent the old Kenya. The apparent Kibaki plan is to have Mr Musyoka succeed him and Mr Kenyatta to be Prime Minister.

This is not a deviation from the Kibaki strategy of 2007 in which he gunned for ‘‘one-tribe-and-abit’’. That is, so long as he had the Gema vote, all he needed was ‘‘abit’’ of support from everywhere.

In the current case, the idea is to have the Gema vote teaming up with the Kamba vote. This formula is home and will not bring healing to our country -- let alone a new order.

The other possible mid-wife is Prime Minister Raila Odinga. The man has potential, but I have some beef with him. One, I have studied him for the last six months and I have absolutely no idea what Mr Odinga stands for.

If there is someone out there with an idea, I beg to be educated. Two, and like Mr Daniel arap Moi, he is more of a tactician than a strategist.

For the short time he has been PM, all he has engaged in is ‘‘rocking chair politics.’’

Like a rocking chair, the intention is to keep us busy, take us nowhere! A good example here is his recent stunt at the barbers – completely ‘‘Moish’’ and charming.

And most of his stunts abroad and here have been like this. However, I do not see a plan or pattern to them. They can only be described as higgledy-piggledy. This is what makes me doubt his ability to deliver on a new Kenya.

What about the opposition, can they midwife a new Kenya? In the words of Voltaire, the French philosopher “… I would rather be led by a lion than by a hundred rats.”

And this is how we must consider the opposition. Although many, they are like a hundred rats; no co-ordination and no oomph!

In my view, the person to midwife a new Kenya does not have to be a politician, a Kenyatta or an Odinga. It could be a simple guy out there with a passion and vision.

If you are that person, can you stand up and tell us your name!

Mutahi Ngunyi is a political scientist with The Consulting House, a policy and security think-tank for the Great Lakes region and West Africa



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Tom Mshindi: Tea with the PM is all right, but business wants action

In a week of dramatic ironies Prime Minister Raila Odinga rounded up a bunch of ministers, permanent secretaries, and parastatal chiefs to meet private sector business leaders and dubbed the event historic.

Actually it was not. It may be the PM’s first meeting, but private and public sector leaders have met before, many times. The irony is that Mr Odinga is making the same promise the Government has made time and again, and never delivered.

The other irony was the rather sudden – some say unceremonious – exit of Mr Abdallah Mwaruwa as the managing director of the Kenya Ports Authority, and the installation of Mr Brown Ondego as the executive chairman of the epileptic Rift Valley Railways (RVR).

Three years ago, Mr Mwaruwa replaced Mr Ondego at KPA, and except for the rather loud excitement of his arrival at the expense of someone many assumed would continue in office, there has been very little heard of Mr Mwaruwa.

The fact that port efficiency has not improved beyond where Mr Ondego left it and, unlike his predecessor, Mr Mwaruwa has not been very adept at managing the PR side of things to look like he was doing his best, the assumption is that he has performed poorly.

The opposite will be true for Mr Ondego who, having spent the past two years or so at Grain Bulk Handlers, has been handed the anaemic railways to babysit. The assumption is that one is a performer, the other not. True? Not necessarily.

Neither of the two gentlemen would have fixed the woes at the KPA without extraordinary support by the Government. The key difference is that Mr Ondego was able to articulate the challenges and opportunities of the KPA more effectively than Mr Mwaruwa was.

Thus, the former was able to win over public confidence and inspire them to share the vision of where he wanted KPA to go. And I have no doubt that this is where Mr Mwaruwa would have wanted the port to go.

Simply put, the port has currently reached the zenith of its physical capacity and process efficiency. It can barely take in any more cargo, and it can hardly move the cargo any faster. Its storage capacity at the Coast and at its inland container terminal is exhausted.

Of course an effective manager can conjure up a trick of two to extract even a 10 per cent better efficiency all round. But that is not what the business leaders that shared tea with Mr Odinga this week want. It is not enough either for the eastern African hinterland KPA serves.

The level of competitiveness required now sees the port doubling its handling capacity and efficiency within five years, an expansion of the port all the way from Makupa to the Likoni ferry, setting up a free port zone and running a 24-hour operation.

If I recall correctly, this was the vision we applauded three years ago and I am very sure that Mr Ondego did not walk out of the MD’s office with it.

If Mr Mwaruwa failed because he did not get the Government support essential to execute the revival and growth of the port, then Mr Ondego will perform only marginally in his new job because the railways network on which his success solely relies is in dire need of a $5 billion revival, the kind of money governments must guarantee.

Without this kind of investment, the railway infrastructure that President Yoweri Museveni calls a museum piece will only provide the kind of efficiency it did in the 1980s!

The point I am making is neither original nor novel, and Brown and Mwaruwa typify many other managers.

It is useful and expected that new chiefs like Mr Odinga still is, will want to be seen as focused and aggressive.

On this issue however, forgive us if we suppress a yawn. Regular round-tables are the last thing that business wants to deal with – especially if they are held to set agendas.
In business, agendas have long been set and shared with Government. I know, for I have been involved with the Kenya Association of Manufacturers, the Kenya Private Sector Association, the East African Business Summit, the East African Business Council, etc.

Ultimately, what business wants is competitiveness – make energy affordable, rationalise taxes, improve and maintain infrastructure, manage corruption, maintain peace and security, and then get out of the way.

Ironically, until this happens, no manager in private or public sectors, and no industry, will achieve the full glory of their potential.

And talking of ironies, not once in his written speech to business did the PM mention railways!



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Kwendo Opanga: Tough as nails this Martha Karua

If Martha Karua became president, I would wish her to be a Margaret Thatcher -- with a compassionate and affectionate, fond and kind, side to her public persona.

Is there such a side to her austere and arrogant persona? If there is, it will have to be made public and often for there is not much evidence of this when one mentions her or sees her on TV.

Recall that two Sundays ago I referred to her as tough-as-nails and that, of course, reminds me of somebody else -- former British Prime Minister Margaret Thatcher.

Thatcher -- now Baroness -- remains for me a politician’s politician, one who presided over an era that saw massive change in British politics and especially economy.

When the Brits voted for Thatcher to be their premier in 1979, a local editor, Mr Chege Mbitiru, argued that she would protect them the way a hen protects its chicks.

The Iron Lady, as the Soviets called her, was to have a massive influence on British politics, especially her Conservative Party, economics and society as a whole. And she became a global player.

Under her leadership, the so-called special relationship between London and Washington flourished and there was, indeed, a special chemistry between her and Ronald Reagan.

Thatcher was a household name worldwide. Local humorist Wahome Mutahi, aka Whispers Son of the Soil, aka Wispa ole Soilo, promptly nicknamed his wife Thatcher. Many men followed suit.

Thatcher’s supporters among the Tories became known as Thatcherites and privatisation was well and truly entrenched as she pursued her goal of transforming Britain into a property-owning democracy.

When in 1991 Saddam Hussein invaded Kuwait, Thatcher thundered that “you do no negotiate with an aggressor, you make him pay!”

When Saddam briefly used foreign nationals as human shields, Thatcher goaded him, calling him a loser who was hiding behind the skirts of women. Remember also that Thatcher had her own war, taking on Argentina over the Falklands in 1982.

And it was Thatcher who destroyed the power of organised labour in the UK, through tough legislation meant to limit strike action. Then she faced down and eventually won against Arthur Scargill when he called out the miners in the 1983-1984 strike.

Before Thatcher went into one election, her handlers worried that she was too stern a person; that she came across as hard as nails, uncompromising and off-putting.

She had to be trained to come across as soft and loving, caring and understanding as she addressed audiences during her campaigns or appeared on TV programmes.

Indeed, Thatcher intimidated even members of her own Cabinet. When a critical minister would begin to criticise her, Thatcher would reach for her handbag and fish out something she appeared to be reading while stealing glances at the speaker.

Ministers thought she was reading from some secret script, possibly prepared by the intelligence, about each one of them. This came to be known as hand-bagging and it scared ministers stiff!

In public, the Iron Lady may not, as she herself said, have been for turning (doing a U-turn or turning her back on her policies) but, in private, she was softened a little.

So is there a tender side to Martha Karua who, it appears, can be as tough as Thatcher? The public Martha Karua, especially the one that emerged after last December’s sinful presidential poll, is as intransigent as she is belligerent.

This is best illustrated by her static positions on the outcome of the presidential election and the matter of amnesty for those suspected of perpetrating the violence that followed the disputed results of the poll.

That won her many admirers, especially in her native Central Province and Mt Kenya areas while alienating her from Western Kenya especially. But in here comes Chege Mbitiru’s chicken and chicks metaphor.

She could protect the country the same way she spoke out in defence of the so-called Central Province diaspora.

You will recall that when a high commissioner and ambassadors waded into the controversy over the presidential poll results, she reminded them that they were inconsequential junior civil servants.

Martha Karua fears no one and she did not hide her opposition to the creation of the Prime Minister’s office and was emphatic when it was created that it was no more than a ministerial position.

After all, there was a Vice President as the principal assistant of the President’s and the President, she let us all know, would chair Cabinet meetings.

Like Thatcher before her, Martha Karua is ready to face down her adversaries any time and anywhere, including on their own turf. It is why she took her no-amnesty message to the land of the Kipsigis and was intent on being heard despite the din of the booing and hissing.

Martha Karua does not hide her disdain and contempt for her critics.

She took Kiss FM’s Big Breakfast presenter Caroline Mutoko and comedian Nyambane to court. The enduring picture from the courts is of her looking daggers at the pair. Thank God looks do not kill.

Former President Moi cannot have forgotten the picture of Martha Karua walking out of his meeting. It was a long walk she took as the TV camera focused on her back and immaculate kitenge outfit.

Just as she is defying President Kibaki on the matter of dissolution of parties, so also was she ready to take on his predecessor on any issue.

Thatcher was eloquent from the dispatch box and quick with the putdown. Sharp witted and even sharper-tongued, Martha Karua has the lawyer’s eloquence and reasoned debate, with rapid fire delivery of putdowns.

But nobody in Kenya’s political arena sneers and grimaces more menacingly than her.

It is why she would dare those in the Party of National Unity (PNU) who are interested in the presidency to come out and face her. She is a formidable opponent in a verbal slugfest and Deputy Prime Minister Uhuru Kenyatta, who was her target here, and others have kept their counsel and distance.

But what would be Karua’s platform as she goes for the presidency?

Most of the memorable battles Thatcher fought within and outside the Conservative Party, between Number 10 and Number 11 Downing Street, between the Tories and Labour, and in and outside the United Kingdom, revolved around the economy.

I do not know what Martha Karua’s economic philosophy or blueprint is, but I know the Thatcherites had a social as well as economic policy which stipulated that owners of assets, especially homes, became independent and self-sufficient.

Let me hear yours Martha. Fight your corner furiously, madam. But, think about a more kindhearted you as you plot your road to State House.

If I did not vote for Martha, it would not be because I am not ready to vote for a woman. No, it would be because I would not be ready to vote for that woman.

That means she need not worry about me. What should worry her is that she might, like Amos Kimunya before her, self-immolate in the furnace of self-importance!

And that, incidentally, is what happened to Margaret Thatcher as Michael Heseltine led the internal revolt against a once heroic Tory leader.

Kwendo Opanga is a media consultant.



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Tobacco Control Act 2007

Micro & Small Enterprise Associations Kenya (MSEA) K
Kenya National Hawkers Association

The Tobacco Control Act 2007, which came into force on 8th July 2008, regulates public smoking and the marketing and sale of tobacco products in Kenya.

This communication seeks to clarify some key provisions of the Act, for the benefit of the general public, retailers and within the hospitality industry.

1. In public places, smoking is allowed only in designated smoking areas
2. Advertising of tobacco products is prohibited in Kenya
3. Retailers are allowed to sell cigarettes only in packets of 10 (ten) and 20 (twenty) cigarettes
4. Cigarettes may not be sold to persons under the age of 18 years
5. On 8th January 2009, the packaging of cigarettes sold in Kenya will change to incorporate larger Health Warnings and other specific markings

Copies of the Tobacco Control Act 2007 may be bought from the Government Press



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Jaindi Kisero: The South Africans should have taken a walk long ago

On Monday this week, South African national Roy Puffet stepped aside as managing director of the Rift Valley Railways.

I understand he has not quit willingly. It is part of a proposition which a group of local investors led by the Transcentury Group have made to the Government and the two international financial institutions supporting the concession.

KFW of Germany and the International Finance Corporation (IFC) had totally lost faith in Mr Puffet’s ability to steer RVR to profitability and operational efficiency.

Mr Puffet had to go because both the Uganda and Kenya governments were threatening to cancel the concession on the grounds of non-performance.

Clearly, the parties had come to the realisation that, as long as he remained at the helm, it was going to be next to impossible to unlock the billions of shillings which key international financiers had committed to the concession.

I understand that a group of local investors, including leading freight companies, have now decided to join hands with the Transcentury Group to raise fresh capital for the project.

The intention of the shareholders is to reach the capitalisation threshold big enough to make the international financiers comfortable enough to agree to unlock the funds.

But does RVR have a realistic chance of surviving?

It will all depend on whether Mr Puffet’s exit and the proposed entry of new shareholders will provide the assurances which long-term lenders such as IFC and KFW want.

The initiative by the local shareholders deserves our full support.

In hindsight, we should not have allowed these South Africans near the railways in the first place. This thing was a mistake right from the beginning.

I still remember how the initial signing of the deal with the Ministry of Transport had to be hurried to circumvent a case which the pensioners of the Kenya Railways Corporation had lodged in court against the privatisation.

It was to turn out later that Mr Puffet had snookered the two major shareholders in the winning consortium, Mirambo Holding and Prime Fuels Ltd by going ahead to sign with the ministry before concluding a shareholding agreement with them.

Cautious voices warned that the Government had taken a major risk by agreeing to cede control of such a large utility to one man.

Just before he was allowed to take over the actual running of the railway, it turned out that Mr Puffet did not have the money to pay the $5 million entry fee as stipulated in the agreement.

According to that agreement, Kenya was to receive $3 million and Uganda $2 million. Mr Puffet took over the running of the railways without paying a cent in entry fees.

Nor did the South African fulfil all the conditions which the two international lenders had imposed.

Under the agreement with the lenders, partial risk guarantees should have been signed and handed over to the Government before the takeover by the South Africans.

The saga about the entry fees was intriguing. Until the very end, the South Africans were promising both Uganda and Kenya that they had the money.

As a matter of fact, the two governments were even requested by the South Africans to send wiring instructions to Sheltam’s bankers in South Africa so that the money could be sent and received before the takeover.

A day before the takeover ceremony, however, it turned out that Mr Puffet could not raise the $5 million.

And, how did he explain it? A long-winded spiel on how one of his South African partners had dropped out of the deal.

We should have told the South Africans to take a long walk. But what did we do? We changed the rules and revised entry requirements to allow Mr Puffet to take over.

Government officials from both Uganda and Kenya, lawyers and transaction advisers representing both parties spent one whole night at the Treasury crafting separate agreement with new conditions to make it possible for Sheltam to take over without having to pay an entry fee.

By the next morning, the new agreements were ready, in time for the hand-over celebrations at the Kenya Railways Headquarters.

The stage had been set for the celebrations and several tents pitched as early as 6 am – complete with special seating for the police band brought there specifically to entertain guests and play the national anthems of both Kenya and Uganda.

As it turned out, the ceremony did not take place until very late in the evening. Apparently, somebody was unhappy with the terms under which the South Africans were being allowed to take over.

The Kenya Uganda railway system is the spinal cord of business in the five East African Community member states.

It was a big mistake to entrust it to an individual.



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Macharia Gaitho: We need to look at anti-terror Bill

WE MARK THE TENTH anniversary of the August 7, 1998 bomb attacks with some rather interesting development in the war against terror in Kenya.

One of the most wanted criminals in the world, Fazul Abdullah, is believed to have narrowly escaped capture when police raided a hideout in Malindi.

That police just narrowly missed capturing the monster responsible for the twin suicide bomb attacks on American embassies in Nairobi and Dar es Salaam, and the 2001 attack on the Paradise Hotel near Mombasa, may well provide cheer that the war on terror is making progress.

Not so comforting, however, is the fact that the elusive Fazul got away, again; and, worse, that he apparently has been able to travel into and out of Kenya at will and may even have been plotting a new attack on the country.

The incident offers us a very stark reminder that the Fazuls of this world are right in our midst and ready to blow me, you and everybody else all to smithereens to score some demented political points.

At some point in the past, we may have viewed terrorism as something that afflicts foreign lands, the result of some dispute originating somewhere in the Middle East, one that should not bother us.

The facts, as we have painfully learnt, are rather different. Terrorism has come to our doorsteps and not just as some foreign import; it has it’s home-grown soldiers – for want of a better word – and sympathisers.

A quick look at arrested terrorist suspects since the bombings 10 years ago reveal that a good number have been Kenyan-born and bred.

Fazul and others of his ilk would not have been able to plant their deadly bombs and kill innocent Kenyans without plenty of local help. That he can find refuge and the freedom to operate in Kenya is testimony to the kind of local support networks in existence.

Our porous borders with the failed state and terrorist haven of Somalia, as well as historical ethnic and religious links stretching to the Middle East, make it easy for proselytisation and infiltration by which the warped ideology has made solid inroads into this country.

Whenever the country has been thrown into mourning after past terrorism acts, there has always been a grouping loudly cheering the infamy; holding up posters of Osama bin Laden and burning the Stars and Stripes though fellow Kenyans have been victims of a far away conflict they care a little about.

That is the kind of support that makes the war on terrorism difficult. And we are not here talking about some underground lunatic fringe, but very open and mainstream thinking.

EVERY TIME POLICE MAKE TERRORist arrests, there will be some uproar about alleged persecution of Muslims. Lobbyists and human rights activists will be out in force decrying police tactics and reducing everything to a religious conflict.

The war against terror has further been made less effective by lack of adequate legal and security mechanisms. The proposed anti-terrorism Bill turned out to be dead in the water, hammered relentlessly by groups which feared it posed a threat to their activities.

Institutional weaknesses in both the security agencies and the Attorney-General’s chambers have meant that even self-confessed terrorists taken to our courts are usually likely to walk free.

At the risk of sounding very far from politically correct, I would venture that it time we looked at the anti-terrorism Bill afresh. We are not going to conquer terrorism and other serious crimes unless we have the legal machinery to deal with offences not envisaged by the current Penal Code.

I would go further and suggest that we have laws clearly defining activities that are anti-Kenyan, and that would include terrorism and support for terrorism.

We have been terrified in the past of offending some groupings because they will always come out loudly playing the injured party or making all kinds of threats. The whimpering, politically-correct approach dictated by fear of intolerant grouping has not won us any respite, as evidenced by continuing terrorist plots against Kenya.

It is time we stopped being shy about prosecuting the war on terror. There can be no compromise on the war that must be fought to keep Kenya free of terror.

This, for us, is not an American, Israeli or British war. As long as it threatens to spill blood on our soil, then it is Kenyan war; and those inclined to side with those who plot to kill their fellow Kenyans deserve no less than treason charges.

This does not mean, however, that we should be indifferent to the issues in the Middle East. The Palestinians deserve a state of their own free of Israeli repression. Israel deserves secure borders. US meddling that has fuelled terrorism across the globe must be halted.

But we can do without a demented bunch that has exploited a legitimate grievance as an excuse for satisfying its own bloodlust around the world.



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