NSE panic loss: Govt goofs, ab
written by mimimzalendo , October 16, 2007

Just a question:
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Could i take the govt to court for absconding its FIDUCIARY RESPONSIBILITY to maintain calm, stability, restore order and continue to regulate the market.

Did some people in Govt and NSE now figure that Kimunya's statements were a serious goof?

While the markets were in panic mode, Kimunya who just got back from UK continued adding fire, Jimna (who also returned from political rallies in UK) absconded without any comment and Kibaki as usual was missing in action.

Kalembe and Muite have in the recent past been on the record saying Kibaki's loss will be due to his henchmen. they state equivocally that certain ministers statements and faces each time see the drip of about 50,000 votes.

I ask again - did the Govt and Kimunya forget that they had a fiduciary responsibility to calm the markets amidst the billions of shillings lost (much more since nov/dec 2006)? and if they do, what have they done about it except issuing paniky statement and branding certain sections of society (lake, sea, river people) as "fish market traders"?

Must the govt intentionally or unintentionally allow the loss of more than 500-B Kshs from NSE in order to stop ODM? And when did the NSE start bleeding?

Majority of traders today said the CEO of Old Mutual address to calm the markets was a stature of a real finance minsiter. And the ODM's visit to the bourse and calm it was presidential.

Meanwhile the elected presdient was still caring less, in gusii issuing new districits and the responsible minister of finance at it with politics.

MM

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written by Stephen Wainaina , October 16, 2007

For someone who is hiding behind a silly nickname you certainly are very brave. I am not sure where you think you are, but bile such as you are spreading is not allowed here.

As regards your question, why is it that you want Kimunya to run behind Raila putting out his fires? Does Raila not owe everyone a responsibility to think and act like he is more than twelve? The Old Mutual boss said what exactly? Can you provide links in your comments or are you more accustomed to displaying your violent ignorance in public?

NSE Panic: Kibaki asleep, Kimu
written by mimimzalendo , October 16, 2007

I just saw your response, then your name and was not shocked.

So my brother, who should we trust? The lies you peddle or the NSE-MD's and Old-Mutual CEO's statements.

Thankfully most of us investors do not care about what tribe or political group is in power, as long as we make money. And we don't always have to have a GEMA president to make money. Ok!

BTW: The Index has been in free fall since Nov/Dec 2006. That is about the same time that HE-Kibaki overtook Hon. Kalonzo on the opinion polls. Would we then say that it is Kibaki who caused that slide in Nov/Dec2006-Mar2007?

Finally, you did not answer the question. Did the minister abscond his FIDUCIARY duty to the market place and engage in cheap politics? At the expense of investors? Must he continue to watch the "panic" even as investors lose billions just so that - get back into office?

MM
[edited by moderator]

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written by aeichener , October 16, 2007

A lot of money is to be made in Kenyan business, true. And wily businesswomen and -men setting up a joint venture with Kenyan entrepreneurs might well be able to cash into these fortunes. But to INVEST in Kenya substantially, a foreigner would have to be a total fool - and successful businesspeople usually are not foolish.

Making me laugh
written by pndiangui , October 16, 2007

How much has Kimunya invested in this market if I may ask?
Do you really know what a market is?
Those are investors voting with their feet based on perceptions they have about an incoming ODM government.
And get me right; It is their perceptions , it might not be reality of what is there to come but they are simply predicting bad economic times or events that will lead to the undervaluation of their assets in the boarse or in the actual physical markets. It is Raila's duty to reverse these perceptions.
It is time for ODM to come face to face with the ugly head of capitalism that demands rationality of thought and deed. I really don't see how Kimunya has done a bad job infact we should be giving him a pat on his back for his role in advancing the listing of an infrastracture bond at the LSE last week. To me this is one of the greatest achievements of Kibaki's regime even with the other baggage it carries. Securing a BB+ rating by S & P and leveraging on this rating to raise infrasracture capital internationally, curbs domestic borrowing and shortens the period for injection of funds to lift up the infrastracture. This should be hailed by every objective observer.

So it is really disturbing when a man being touted to be Kenya's next premier like Ruto makes comments about the bourse that stink of sheer ignorance. It makes capitalists loath such a government managing their business environs.

Govt goofed on this one
written by mimimzalendo , October 16, 2007

Don't worry about my names. They definitely are not familiar to my brothers and sisters from Central.
Worry about your shares. I worry about mine. And regardless of politics, any Government has a FIDUCIARY responsibility to not create markets panic and instability. Even if it means, it won't score politically. Unless off course my shares don't matter. Much like the 500-B Kroll Reports mentions on corruption.
Musical chairs once again. And the ethnic elites sound the beats.
Here is the link.

rwanda beckons
written by emmo opoti , October 17, 2007

Here's the lout again.
Can we get back to the topic maybe? There are opportunities to be hand across Africa, and in Kenya even. The question is whether these can be exploited by an investor who is neither a masochist nor a dare-devil. I do not know that this is possible yet, and at least not in Kenya. ?For those of us with an emotional attachment, there's an imperative but even then the situation limits the impact of our work. I am meeting more and more Kenyans outside, who speak purely of creating businesses for the outside world, looking at the home country and thinking its not worth the time and effort.

However, as Euvin points out there are increasing signs of progress. Companies issuing non-backed bonds, the number of countries attaining credit ratings and the increasing role of the financial markets. Still there is a limit to how far this can go in the absence of meaningful and radical reforms. Is there a readiness to deal with climate change? Is there a readiness to contend with stratopheric oil prices? Are food sources secure?

There has been a massive commodity boom in recent times, oil hit $84 last Friday, it must be an orgy in Angola, Nigeria and their trading partners, but can it be sustained? Botswana and Namibia still have, for all the lack of corruption, good courts, good roads and high credit scores , extensive areas with very poor and poorly educated people. There is the real challenge, making it last, and making it count.

Mzalendo
written by pndiangui , October 17, 2007

The vice chairman of NSE put it on Raila's face that his comments are irresponsible. This is my concern that his comments on NSE are irresponsible and I have met many Kenyan investors who have lost confidence in the boarse due to the probability of a Raila presidency. The fact that I am not supposed to point out Raila's goofs objectively without getting reminded of my place of birth is really shameful. I have pointed our when the Langata mp has performed sterlingly in certain occassions and I have put the man you think is my tribesman on spot as well everytime I think he has underperformed; and his underperformane in many issues hasnt 'dissapointed' and it is because of this confidence that I really dont see how my place of birth determines who I put on spot. It is probably this GEMA line of thinking that most of us have been sold to by the populist ODM architects.