15 May Full

Ministers defend county positions
Back Page Kibaki was right in appointments, say ministers
Designers join war on malaria

P.3 Researchers create garment that repels mosquitoes
Nairobi | Tuesday, May 15, 2012
KSh50/00 (TSh1,000/00 : USh1,500/00) : RFr500/00) www.nation.co.ke
No. 17216
IN COURT
POLITICS | Uhuru, Ruto, Mudavadi among presidential candidates who could be aected by court ruling
MPs got the boot for being disloyal

Makadara MP Gideon Mbuvi (Narc Kenya) and his Mathira counterpart Ephraim Maina (Sana) were expelled by their parties for supporting other parties in by-elections. However, they got a reprieve after the High Court issued orders stopping their expulsion until their cases are heard and determined.
Raila lobby les suit to kick out 100 defectors

PMs campaign group wants Speaker compelled to declare defectors House seats vacant
BY PAUL OGEMBA
pogemba@ke.nationmedia.com
UNMASKED | MPs grill Clinix directors over ghost medical facilities

Clinix Healthcare Ltd Chief Executive Ocer Toddy Madahana (left) and chairman Jayesh Saini before the House Health Committee investigating the National Health Insurance Fund scandal yesterday. The committee accused the rm of taking the health of Kenyans for granted.
SALATON NJAU | NATION
AND PETER LEFTIE
pmutibo@ke.nationmedia.com residential aspirants Uhuru Kenyatta, Musalia Mudavadi, William Ruto and Peter Kenneth are among close to 100 MPs who risk losing their seats for defecting from parties that sponsored them.
This follows a decision by a lobby group linked to Prime Minister Raila Odinga to move to court seeking orders to eject them from Parliament. The Friends of Raila (Fora) lobby group wants the court to order the Registrar of Political Parties to write to the Speaker
CONTINUED ON PAGE 2
FOR MORE, SEE PAGE 11
ON OTHER PAGES
LEGISLATION
Gang kills three in raid on IEBC Coast oce

BY AMINA KIBIRIGE
akibirige@ke.nationmedia.com
DRAFT LAW TARGETS PYRAMID SCHEMES

Proposal seeks 10 year jail term and Sh10m ne. Smart Company
AND DANIEL NYASSY
dnyassy@ke.nationmedia.com Unidentied raiders killed three people during an attack on the oces of the electoral commission in Kwale yesterday. The gang also stole three laptop comput-
ers, but left other valuable items. This is the second such attack on the Independent Electoral and Boundaries Commission (IEBC) at the Coast, where a separatist group, the Mombasa Republican Council (MRC), has vowed to disrupt elections. Internal Security Assistant Minister Orwa Ojodeh said they had received re-
ports about the attack whose motive was not yet known. We got reports in the morning about the killings. We are yet to know the motive of the attack but we are warning any group that is on such missions that they will face the full force of the law. Kwale CONTINUED ON PAGE 4
INDEX
News P. 2-11 Opinion P. 12-13 Letters P. 14 Special Report P. 17 International P. 19-28 Business P. 30-33 County P. 34-36 Sport P. 64-68
2 | National News
IN COURT | Group wants seats of MPs who have defected declared vacant
DAILY NATION Tuesday May 15, 2012
Lobby takes a stab at defectors

CONTINUED FROM PAGE 1 of the National Assembly to declare the seats held by the MPs vacant. Should they lose their seats, this would trigger by-elections in about half of the parliamentary seats, the equivalent of a mini-general election. Recently sacked Cabinet minister Najib Balala and Justice minister Eugene Wamalwa are also among the nearly 100 MPs who may be aected. Mr Kenyatta has left Kanu, which sponsored him to Parliament and is now associated with The National Alliance while Mr Kenneth, who went to Parliament on a PNU ticket is in the Kenya National Congress. Mr Mudavadi and Mr Ruto have ditched ODM for the United Democratic Forum and United Republican Party respectively. Dozens of MPs have moved with them. Foras petition is signed by officials Micah Kigen (chairman), Hassan Omar Hassan (vice-chairman), Eliud Owalo (secretary) and activist Charles Omanga. It contends that the Registrars failure to take action against the MPs is a violation of the Constitution and the Political Parties Act. We also want an order directing that the said members of Parliament are deemed to have resigned from their sponsoring political parties pursuant to section 14 of the Political Parties Act and accordingly need to seek a fresh mandate from their constituents, said
GUIDE TO YOUR DAY

Regional highlights
Nairobi: President Mwai Kibaki will launch the Africa Human Development Report at UNEP headquarters at 10.30am today. -Planning minister Wyclie Oparanya is expected to unveil the 2012 Kenya economic survey, which shows the countrys output, at KICC today at 10.30am.
Review of court rules
Mr Hassan Omar Hassan (second left), the vice-chairman of Friends of Raila, and lawyer Anthony Oluoch (right) with members of the lobby group outside a Nairobi court yesterday before they led a petition seeking to have seats of MPs who have defected to other political parties declared vacant.
PAUL WAWERU | NATION
100
They (Supreme Court rules) should be made easy to understand and relate with especially for litigants,
Chief Justice Willy Mutunga . Page 10
Approximate number of MPs who have defected from their parties.
TO COMMENT ON THIS STORY, SCAN THE CODE OR GO TO www.nation.co.ke/ 15052012
the lobby groups lawyer, Mr Anthony Oluoch. The move comes only a day after Cabinet ministers Moses Wetang ula and James Orengo challenged the Registrar of Political Parties, Ms Lucy Ndungu, to declare the seats held by such MPs vacant because they had violated the law. Speaking at Wagai, Gem constituency on Saturday, Mr Orengo challenged Mr Mudavadi and MPs allied to him to resign from Parliament and seek fresh mandate on a UDF ticket. Mr Wetangula asked the Registrar and the Independent Electoral and Boundaries Commission (IEBC) to enforce the law by
declaring the seats vacant. It is callous for legislators to blatantly violate the new Constitution by undermining the very parties that elected them. These party hoppers are being illogical when they say openly that they have defected to other parties yet they remain in Parliament by virtue of belonging to parties they have disowned. Mr Wetangula added: IEBC has a constitutional mandate to move with speed and declare seats for such MPs vacant. IEBC chairman Ahmed Isaack Hassan was recently quoted stating that the commission had identied some 100 MPs who had violated the Political
Parties Act by shifting allegiance to other parties. Reached for comment, Ms Ndungu and the chairman of the Commission on the Implementation of the Constitution, Mr Charles Nyachae, refused to comment. Ive not seen the court documents so I cannot comment, said Ms Ndungu. Mr Nyachae promised to issue a statement on the matter today. The part of the Constitution that deals directly with the matter is Chapter 7 which is suspended until after the rst General Election but we are combing through the Political Parties Act with a tooth comb so that we can give an informed opinion tomorrow, he said.
In the news
Kisumu: The Kenya Airports Authority (KAA) and Kisumu leaders are embroiled in a tussle over a Sh52 million deal to upgrade a local school. Leaders say the authority agreed to upgrade the primary school after the community agreed to relocate from the Kogony area to pave way for the expansion of Kisumu airport but it did not. KAA, however, says it has done its bit. Page 37 Mombasa: The Attorney-General cannot strike out an application seeking a referendum
on Coast secession, the lawyer representing the Mombasa Republican Council has said. He told a court that the AG has no right to dismiss the case since he is yet to respond to their motion. Page 11 Nairobi: Local and International NGOs are headed for a clash with an agency over two Bills meant to regulate the sector. While international NGOs support a Bill to be tabled by an ODM MP, local ones back another drafted by the NGO coordination board. Page 6
Mr Nahashon Kipserem of Kimeloi Secondary in action during their handball match against Silibwet Secondary during Rift Valley games in Eldoret yesterday.
JARED NYATAYA | NATION
WEATHER FORECAST
17 23 19 16
0600 1200 1800 2300
Nairobi will have rains in the morning and high humidity Temperatures will rise at midday as humidity falls Temperatures to fall with more cloud cover Further drop in temperatures and high humidity at night
National News 3
RESEARCH | New material repels the malaria-causing mosquitoes
Designer clothes join malaria war

Kenyan researcher comes up with material that can be fashioned into ordinary clothes to oer protection against mosquito bite
BY GATONYE GATHURA
Gathura@ke.nationmedia.com Kenyan researcher has developed clothing material that repels the malariacausing mosquitoes. Manipulating materials at a very basic level in what is called nanotechnology, Dr Frederick Ochanda and colleagues at Cornell University in the US created a material they say could make the next generation of mosquito nets that are longer lasting and more eective. The university says in a statement that the material can be fashioned into ordinary garments to be worn outdoors or even during the day to oer protection against mosquito bite. Sewn into a body hugging outdoor garment by Gambian apparel designer, Matilda Ceesay, the creation was on the catwalk during a fashion show held at the university two weeks ago. The material which comes in many colours, is loaded with up to three times more insecticide than normal nets, hence prom-
3
Clothing material which comes in many colours, is loaded with up to three times more insecticide than normal nets
BACKGROUND
ising to offer protection for a longer time. The bond on our fabric is very dicult to break, says Dr Ochanda, a Kenyan post doctoral associate in Cornells Department of Fiber Science & Apparel Design. This is an interesting development, especially if the technology can give the bres a long life span and be produced at much lower cost than the current yarn, Prof Bernard Odhiambo Aduda of the University of Nairobi told the Nation yesterday. He said although Kenya had not done much work on nanotechnology, it is the science of the future where materials can be manipulated at minute levels. At this scale, about a billionth of a metre the materials possess some unique properties that are being exploited to make new products, he said. According to the head of the Institute of Primate Research one of the few institutions in Kenya involved in nanotechnology Dr Thomas Kariuki, this is an exciting development in the ght against malaria. We are happy to see more Kenyans get involved in this new science especially to solve local problems, said Dr Kariuki said yesterday. He said these new nanocharged bed nets or fabrics could nd widespread use especially in children clothing that would be really signicant as malaria is primarily a killer of children. The other exciting bit about this is that it provides an opportunity to translate the science of nanotechnology from the labs to become part of everyday applications, implying that this new science is coming of age. The costume on the catwalk was a one-piece body suit, hand-dyed in vibrant hues of purple, gold and
Malaria decline by 56 per cent

Decline of admissions by up to 56 per cent in some districts since 1999 Decline in child deaths in some districts up to 44 per cent due to use of nets Outpatient consultations due to malaria declined from 31.2 per cent in 2001 to 28 per cent in 2006. A 28-63 per cent decline in childhood malaria in Kili, Coast Province. Brief Bio Dr Ochanda was born in Homa Bay District. After completing secondary education at Homa Bay High School he proceeded to Egerton University. He attained a doctorate degree in chemistry from State University of New York. His current work at Cornell University is tailored towards development of textile nanotechnologies that will help improve many aspects of life including military, athletic, medical and personal.
Unique properties
Long-term goal of science is to protect life.

Dr Frederick Ochanda
The fashionable hooded body suit embedded with insecticides for warding o malaria causing mosquitoes. The outt by Gambian apparel designer Matilda Ceesay (right) was worn by models on the catwalk during a fashion show at Cornell University two weeks ago.
blue, and a mesh hood and cape containing the repellent. Seeing malaria aect many people in Kenya, its important for me to apply bre science to help this problem, Dr Ochanda says. A long-term goal of science is to be able to come up with solutions to help protect human life, so this project is very fullling for me. Dr Ochanda says further improvements on their prototype are being contemplated that will allow the fabric to release the repellent in response to changes in temperature or light, offering wearers more protection at night when mosquitoes are on the hunt. At the minimum, Dr Ochanda hopes the technology can be applied to create longer-lasting insecticide-laden bed nets. Dr Ochanda is involved in other futuristic projects like the manipulating of cotton into high-tech electronic devices which include smart clothing and others which can protect the military against harmful chemicals. According to The Ithacan, a
CORRESPONDENT | NATION
weekly online publication of the Ithaca College in the US, the cotton team is working on projects sponsored by the US Department of Defence to nd how to protect soldiers from dangerous chemicals and gases.
4 | National News
SECURITY | Separatist group distances itself from attacks
Three killed as gang raids IEBC oces

CONTINUED FROM PAGE 1
boss Richard Mugwai was cautious about linking the robbery to MRC, saying it was too early to say who was involved. MRC spokesman Mohamed Mraja distanced his outlawed group from the killings, saying the separatists were peaceful. In fact, I am learning of the raid from you. I want people to stop linking everything bad to MRC. We are not a criminal gang and we dont break into other peoples offices. That was not our raid, he said at the Mombasa courts where he was attending an MRC case. About six men armed with clubs raided the IEBC oces at Bomani in Msambweni at 2am, the local police boss said. After brutally killing two watchmen, the gang moved to the Yehu Micronance oces where they stole four more computers. The attackers then entered a scrap metal yard nearby where they clobbered another watchman who died on his way to hospital. IEBC Coast regional coordinator Amina Soud said the raid was shocking and cautioned security agents that it should serve as a wake-up call. In fact my ocer at Msambweni is still in shock. I have asked him to go o duty today. Although we dont suspect the raiders to be MRC members, this should serve as a wake-up call to security agents, she said by phone. The laptop of the officer in charge, said to contain vital information on voter registration and IEBC, was among those stolen. Ms Soud pointed out that the offices were guarded by Administration Police officers on a 24-hour basis but were still raided. As to where the APs were at that time, I dont know and dont ask me because I am not in charge, said Ms Soud. She said no classified information was in the stolen computers. It was not the top secret information that they took away. Msambweni District AP Commandant Wilson Gichuhi said
FILE | NATION
This should serve as a wake-up call to security agents

Ms Amina Soud, IEBC Coast regional coordinator
Mombasa Republican Council members at a past function pushing for the secession of Coast Province over alleged neglect by the government. The group has vowed to disrupt elections.
his officers only patrolled the area where the IEBC oces are located. My officers are not permanently stationed at IEBC oces but carry out patrols throughout the general area. They might have been in another area during the raid, he said. Mr Mugwai said it was surprising that the raiders did not steal any money from the two oces but went for computers. There was a safe with money at the Yehu Micronance oces and a very expensive digital camera lying on the table. But the thieves did not touch them but moved out with laptops, some which were not
operational. MRC has been linked to several attacks in the province this year. Two months ago, suspected MRC attackers disrupted a mock election at St Andrews Primary School in Malindi. During the attack, an AP ocer was beaten, injured and robbed of his rie. At Chonyi, raiders suspected to be MRC members, attacked IEBC ocials as they conducted civic education and burnt their vehicle and voting materials. In Kaloleni an AP post was raided and officers beaten up and hurt while at Shelly Beach in Likoni an ocer was killed and
his gun stolen by people suspected to be MRC members. IEBC has moved its offices from Mombasa town centre to a location protected by the General Service Unit next to the Mombasa State House. However, Ms Soud said the reason for the move was space and not security, adding that the old oce was only 50 metres from the Central Police Station and quite secure. Also, more than 200 APs from Coast Province are said to have been transferred out of the region in a move to improve security ahead of the elections. See another story Page 11
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National News 5
POLITICS | Wetangula says party will challenge law requiring civic leaders to have degrees
BRIEFLY
NAIROBI
Ford-K rules out coalition talks

As Narc Kenya leader vows to stop receiving salary after December 2012 and condemns Kibakis appointments
BY WANJIRU MACHARIA
lwmacharia@ke.nationmedia.com ord Kenya will go it alone in the next elections, party chairman Moses Wetangula revealed yesterday. The partys top organ reached the decision as Narc Kenya presidential hopeful Martha Karua said she will not accept any salary from Parliament after December 2012. Ford-Ks National Executive Council (NEC) had just ended a two-day meeting at Elementaita in Nakuru.
Ministry recalls bad maize sent to IDPs

The Ministry of Special Programmes yesterday ordered the immediate withdrawal of 200 bags of maize supplied to displaced persons in Mai Mahiu in Naivasha, Nakuru County, amid reports that it was contaminated. Permanent Secretary Andrew Mondoh, in a statement to newsrooms, said that they had sent out another batch of grain to the IDPs in Jikaze, Tumaini, Huruma, Vumilia and Mweteithia camps. He said the bad maize had been supplied by the National Cereals and Produce Board last week and his ministry did not suspect it could be contaminated.
Narc Kenya party leader Martha Karua is welcomed by Dr Francis Karanga at a Nakuru hotel where she met women eyeing various political seats in the region yesterday. Looking on is former Naivasha MP Jayne Kihara.
they are better leaders than those with academic qualications only, he advised. He declared that his party would sponsor a miscellaneous amendment Bill in Parliament to challenge the law. He also asked those interested to run on the partys ticket to register so that they can learn its rules. Mr Wetangula, who was accompanied by among others, Bumula MP Bifwoli Wakoli dismissed allegations that Ford-K councillors had defected to ODM, saying the reports were false. Our members are disciplined and would not make such a move without consulting the necessary party organs, said Mr Wetangula. Elsewhere, Ms Karua said she will
SULEIMAN MBATIAH| NATION
MACHAKOS
Sponsor Bill
Addressing the press after the meeting, Mr Wetangula said the second oldest party in the country would also eld candidates for all elective posts, including the presidency. The Trade minister revealed that his party will challenge the law requiring an aspiring councillor to have a bachelors degree before vying terming it as punitive to leaders who had been elected before. Their experience should be considered during vetting because
They (older experienced councillors) are better leaders than those with degrees,
Ford-K Chairman Moses Wetangula
not accept to be paid for the additional months after the end of her term as an MP in December. Speaking in Nakuru during an education forum for women leaders, the presidential aspirant termed the move by some leaders to push the General Election date to March next year as impunity of the highest order. She accused President Kibaki of overstepping the set constitutional procedures by unilaterally appointing 47 county commissioners. She said the appointments should be cancelled.
Two arrested over theft of relief food

Police in Kangundo district yesterday arrested two people suspected of involvement in theft of relief food from a government cereals store at Tala. The store manager and a driver of a truck had allegedly unpacked 96 bags of garden peas from the GOKbranded sacks into plain bags when detectives descended on them. There have been claims of massive theft of cereals meant for relief food from the store involving traders in Tala and Kangundo towns of Machakos county.
PS tells court man forged his signature

BY NATION CORRESPONDENT
A permanent secretary yesterday denied allegations that he directed a company to employ a suspect on instructions from Prime Minister Raila Odinga. Dr Mohamed Isahakiah said the man, Mr Kennedy Auma Andiema, forged his signature in a letter he submitted to Essar Telecom Limited seeking a job. Dr Isahakiah was testifying before senior resident magistrate Mr Joe Omido. The third paragraph of the letter stated that the PM directed Essar to employ Mr Andiema. Dr Isahakiah told the court he received a letter on May 19, 2009 from Essar seeking conrmation on whether he had recommended any person for employment. A recommendation letter purportedly written by him was attached. On realising his signature had been forged, Dr Isahakiah alerted security ocials at the PMs Oce and on May 23,2009, Mr Andiema was arrested and charged. Mr Andiema denied the charges on March 5, 2012. An arrest warrant was issued against the PS after he failed to show up during the hearing. Last Friday Dr Isahakiah appeared before Mr Omido and explained that he was on ocial duty with the PM in Voi. The hearing continues on June 15.
Three herders killed in attack on villages

Three herders were yesterday morning killed and six others seriously injured after an attack by cattle rustlers at Ndumuru area in Igembe North District. The rustlers had stolen 58 goats and 80 cows before the residents called for help from Kenya Police Reservists (KPR). The raiders struck in two villages. Those killed are Kaburu MMunoru, John Kinyua both from Karama, Tigania East and Ngorua MEruaki who were guarding the livestock, said area police boss Cornelius Sigor. According to David MItirithia who is in charge of the KPR, the attack was a revenge mission after the reservists followed the raiders and recovered the livestock. He said the rustlers were armed with sophisticated weapons. Meanwhile, Kenyas security forces have recovered 30 head of cattle stolen by suspected Turkana raiders from northern Uganda. Turkana West deputy DC Erick Wanyonyi said Kenyan security personnel recovered the animals after ambushing the raiders. The raiders surrendered and escaped after sensing the that security ocers had caught up with them, Mr Wanyonyi said. He added that suspected Turkana raiders last week attacked the Dodoth community living in Kaabong village, Uganda and shot dead two people before escaping with their animals. Kenyan security ocials
80
The number of cows the rustlers stole from Ndumuru village

said they recovered the animals and handed them over to Uganda Peoples defence Force on Sunday. We want peace to prevail between these two warring Turkana and Dodoth communities. We have witnessed a lot of bloodshed due to tribal clashes among these border communities, he said. Local peace coordinator Augustine Kai said both communities had earlier signed an accord to end hostilities. Additional report by Xinhua
6 | National News
CONTROVERSY | Fighting for share of donor money
NGOs wrangle over law to rein in sector

Charity groups dier over Bill that will regulate Sh130bn industry
BY SAMUEL SIRINGI AND NJERI RUGENE
ssiringi@ke.nationmedia.com nrugene@ke.nationmedia.com ocal and international charities are bickering over a proposed law that aims to regulate the Sh130 billion sector. Although the board that regulates NGOs has tabled the Non-Governmental Organisations Draft Bill 2012 for public debate, some charities are pushing for a dierent Bill. Nominated MP Soa Abdi plans to table the Public Benet Organisation Bill, 2012. The ODM MP, who is the chairperson of the Committee on Labour and Social Welfare, said yesterday the Bill would be tabled soon.
BRIEFLY
NAIROBI
Media owners elect new ocials to body

Radio Africa Group chairman Kiprono Kittony has been elected the Media Owners Association chairman. Mr Kittony was picked to serve for one year at yesterdays annual general meeting in Nairobi. Kass Media Group chairman Joshua Chepkwony will be the vice-chairman, while Mr Hanningtone Gaya of Media 7 Group will serve as secretary. NMGs Tom Mshindi was elected organising secretary.
PROPOSALS
What Bill seeks to achieve

To safeguard freedom of association A transparent and accountable registration regime The need for an accountable NGO sector The need for self-regulation The need to protect assets and continued public benet from gifts given to NGOs
National Council of NGOs chairman Ken Wafula, who supports the government Bill, accused Ms Abdi of working with international NGOs to defeat a good Bill. We want Ms Abdi to withdraw her Bill in order for us to send to Parliament a document that has everyones consensus, he said. But Ms Abdi denied being pushed by international NGOs. My background is in civil society, having founded a very successful NGO in Northern Kenya (Womankind Kenya) which I dream will go international, she said, adding she welcomed input to her Bill. I will not ght local NGOs after being in the movement for 18 years, she said. The proposed law will compel charities to make public their nancial dealings to address accusations of impropriety and money laundering activities against them. NGOs Coordination Board ocial Henry Otieno said yesterday the planned law would increase transparency and align the activities of NGOs with the new Constitution. He said charities were able to get away with oences because they were registered by dierent agencies which had no mechanism to follow-up on their activities.
NAIROBI
Lobby to clear air on Makueni CDF claims

The National Taxpayers Association will revisit Kibwezi constituency after area leaders questioned the groups claim that Sh27 million of CDF cash could not be accounted for. Association coordinator Dennis Adieno said a team would verify concerns raised by area MP Philip Kaloki and other leaders. We want to be fair and that is why we are sending a team. On Friday, we will have a meeting with the MP and other leaders to exchange notes, Mr Adieno said.
PAUL WAWERU | NATION
Immigration minister Otieno Kajwang testies yesterday in a Nairobi court in a case in which an agent has denied stealing more than Sh6 million from his company, Ralek Enterprises, between January and June 2011.
MOMBASA
Agent stole Sh6m from me: Kajwang

A Cabinet minister yesterday told a Nairobi court how a sales agent stole Sh6 million from his company. Immigration minister Otieno Kajwang said the agent was supplying used oil to Athi River Mining Ltd on behalf of his rm. Mr Hezbon Omondi Nyagwala, who is in the dock, used to keep the cheque book. I trusted him. He used to bring the cheque book to my ofce whenever we were to make any payments, Mr Kajwang testied. He told magistrate Lucy Nyambura that Mr Nyagwala was the sole sales agent for his Ralek Enterprises Ltd company. The Mbita MP said Mr Nyagwala had rst identified a company by the name Chania Oil to supply the used oil to Athi River Mining. Chania used to transport the oil to Athi River Mining. We paid for the transportation separately. After some time, the agent said he had identied another company Oil Zone to supply the oil, the minister said. He did not object to the change of supplier. He said the agent continued to receive payments until it was discovered that Athi River Mining was not making any payments despite receiving supplies. The minister said the truth was known when he asked Mr Nyagwala to bring the cheque book because he wanted to draw Sh200,000 for oce use. The agent did not turn up. I had to involve police. It was discovered from the registrar of companies that Oil Zone belonged to Mr Nyagwala. No supplies had been made to Athi River Mining. It owes Ralek no money, the minister said. Oil Zone is Mr Nyagwala. No oil was supplied to Athi River Mining by his company, he added. Mr Nyagwala has denied stealing Sh6,199,000 from Ralek Enterprises. He is out on bond. The hearing continues.
Somali to be deported after she pays ne

A Somali was yesterday ned a total of Sh950,000 after she admitted four immigration-related oences. Khadija Mohamed will serve three-anda-half years behind bars if she fails to pay the ne. Mombasa chief magistrate Stephen Riechi also directed the accused to be repatriated after paying the ne or when she completes the sentence.
MERU
Women inmates get food and pads gifts

A womens lobby in Meru County yesterday donated food and sanitary pads to inmates at Meru Prison. Meru County Women Forums chairperson Joyce Muriuki said a lot of inmates were forgotten by their relatives. Women in this country ought to support each other irrespective of where they are and who they are. We know that some of them do not deserve to be here and to make matters worse, some are raising their children behind prison walls, Mrs Muriuki said.
APOLOGY
In a regrettable mix-up of captions, yesterdays edition of the DN2 gave the erroneous impression that the mother of the Government spokesman, Dr Alfred Mutua, is not alive. We take this early opportunity to apologise to Dr Mutua, his dear mother and the entire family for any anxiety this error might have caused.
Oil Zone is Mr Nyagwala. No oil was supplied to Athi River Mining by his company
Immigration minister Otieno Kajwang
8 | National News
Leave Raila alone, ODM rivals told

BY NATION REPORTER
Acting Local Government Minister Fred Gumo yesterday challenged presidential hopefuls to stop anchoring their campaigns on Prime Minister Raila Odinga. He said most aspirants had made Mr Odinga the main feature of their campaigns yet they should be selling their vision for the nation. Which president do you want to become if your main aim is to block other candidates from the competition? You have to campaign based on your ideologies, said the minister. Mr Gumo who spoke at Orange House told o any politicians who were hoping to be endorsed by Eldoret North MP William Ruto and Deputy Prime Minister Uhuru Kenyatta if they are blocked from the presidential race over cases facing them at the International Criminal Court. He also exonerated Medical Services minister Anyang Nyongo from blame on the scandal at the National Hospital Insurance Fund. During the press conference, Mr Kegode Mudavadi, a brother to the former deputy party leader Musalia Mudavadi declared he was staying in ODM despite his siblings departure.
DISPUTE | Court told Nyamweya used company for failed deal
Football chiefs rm dragged into land suit

Trader accuses FKF boss of refusing to refund deposit paid for two parcels
BY PAUL JUMA
pjuma@ke.nationmedia.com businessman who sued Football Kenya Federation chairman Sam Nyamweya for Sh6.5 million, has applied to enjoin the sports administrators company in the suit. Mr Nyamweya (right), a director of Bokin Holdings, allegedly used it to enter into a property sale deal with Mr Jared Kangwana in 2009. He was to sell to Mr Kangwana, the director of the Monarch Group, two parcels of land for Sh65 million. However, he allegedly terminated the agreement before it was executed, and after Mr Kangwana had paid a deposit of Sh6.5 million. He has allegedly failed to refund the money, hence the suit. Mr Kangwana filed the suit in 2010, but has led a fresh application seeking to
Opportunists warned
Amount of money Monarch Group is alleged to have paid Sam Nyamweyas Bokin Holdings
Sh6.5m
Cooperative Development minister Joe Nyaga (left) has a word with MP Ababu Namwamba at a meeting where the party received 21 councillors from Bungoma County who support ODM and want to work with the party.
EMMA NZIOKA | NATION
enjoin Mr Nyamweyas rm. He is also seeking to enjoin Monarch Group as a second plainti. Lawyer Deborah Bubi, for the plainti, told the court the agreements in the case were between the Monarch Group and Bokin Holdings Ltd. They discovered the same while preparing evidence, hence the application to enjoin the two companies, she stated. However, the payment
was made to Mr Nyamweya directly, she noted. Mr Nyamweyas lawyer asked for time to le a replying statement. Mr Justice Joseph Mutava granted 10 days. The hearing will be on June 12. According to the plaint, Mr Nyamweya had agreed to sell to Mr Kangwana the two parcels of land. At the time, Bokin Holdings was acquiring the land from Amusement Garden Ltd. They agreed the Monarch Group would pay Bokin Holdings Sh6.5 million as deposit before the execution of the agreement. Mr Nyamweyas rm was to refund the deposit with interest of ve per cent above the Bank of Indias lending rate if the sale aborted. On October 12, Mr Nyamweya notified Monarch Group of his intention to terminate the agreement after discovering that the land parcels had not been degazetted. He allegedly promised to refund the deposit by the end of October 2009 but Mr Kangwana says he has not received any funds.
National News 9
CJ seeks to be struck o lawsuit

Mutunga says suspended magistrate cannot sue him as he wrote letter in his capacity as JSC chair
BY PAUL OGEMBA
pogemba@ke.nationmedia.com hief Justice Willy Mutunga wants to be struck out as a respondent in a suit led by a suspended magistrate. Dr Mutunga said he was inappropriately joined in the suit by Ms Joyce Manyasi as he wrote the suspension letter in his capacity as CJ and Judicial Service Commission chairman. Through lawyer Paul Muite, Dr Mutunga said the JSC was the proper institution to reply to Ms Manyasis plaint. When she sued the JSC for the rst time, the judges ruled that then Chief Justice Evan Gicheru was inappropriately joined in the suit. It will therefore be appropriate if Dr Mutunga is also struck out as a respondent, THE DEMANDS
LITIGATION | Judicial ocer challenges decision to send her home
BRIEFLY
KILIFI
What Ms Manyasi wants

A declaration that the suspension letter written by Chief Justice Willy Mutunga (right) was null and void. An order barring Judicial Service Commission from implementing the CJs decision to suspend her. An order directing the JSC to reinstate her in her former position as a judicial ocer. A declaration that the decision to interdict her was based on extraneous matters which were not communicated to her.
as it did not consider that a two-judge bench had in 2009 ordered that Ms Manyasi be reinstated. He said the suspension letter was illegal since a judicial ocer could only be relieved of his or her duties if convicted of a criminal oence or where disciplinary proceedings had taken place and the ocer found guilty. Disciplinary action must have taken place rst before suspension; not suspending the ocer then contemplating disciplinary action, Mr
said Mr Muite. Mr Muite said the magistrate should allow the JSC to investigate allegations against her and defend herself before the disciplinary commission. However, Ms Manyasi through lawyer Peter Kaluma, said she was not opposed to an investigation and her suit only sought a determination of whether her suspension was in accordance with the law. Mr Kaluma submitted that the suspension was unlawful and in bad faith
Kaluma said and accused the CJ of prematurely writing the letter, saying his conduct was bent on ensuring Ms Manyasi was thrown out of the judicial service. Ms Manyasi was interdicted in March 2005 when she was Machakos chief magistrate for allegedly taking part in a nationwide go-slow by magistrates for improved terms of service. But while waiting for the interdiction to be lifted, the JSC retired her on grounds of public interest. In November 2009, Justices Jeanne Gacheche and Leonard Njagi ordered that she be reinstated but instead of complying with the order, Justice Gicheru levelled fresh charges of alleged misconduct dating back to 1993. Mr Kaluma said it was ironical that people who should be the rst to comply with court orders were the ones who violated them. He said the issues raised by Dr Mutunga in the suspension letter were the same that were raised by Justice Gicheru and which Ms Manyasi had been cleared of. Justice Weldon Korir will make a ruling on July 4.
Driver arrested after bus runs over couple

A Tanzania-bound bus killed a man and his wife in a hit-and-run incident in Msambweni on Sunday. Local Administration Police commandant Wilson Gichui said the vehicle was intercepted at Lunga Lunga on the Kenya-Tanzania border and the driver arrested. The bus was heading to Lunga Lunga when it hit the couple that was riding a motorbike, while overtaking, killing them on the spot, he said. Residents have complained of many accidents and cases of crime in the area.
NAIROBI
Raila visits Shikuku, says bill will be paid

Prime Minister Raila Odinga yesterday visited ailing veteran politician Martin Shikuku at the Texas Cancer Centre in Nairobis Hurlingham area. The PM said the government would pay the hospital bill of the former Butere MP. Mr Shikuku, who is being treated for prostate cancer, lamented about the high cost of cancer treatment, saying tests, including X-ray examinations, were beyond the reach of many even before the real treatment begins.
CAMPAIGN TRAIL | Kalonzo readies for a traditional Maasai jig

Vice-President Kalonzo Musyoka joins Maasai traditional dancers who entertained guests at a rally at Ol Posumoru in Narok North Constituency yesterday.
PHOTO | VVPS
NAIROBI
LSK quizzes Abdullahi over pupilage papers

Lawyer Ahmednasir Abdullahi was yesterday quizzed by the Law Society of Kenya (LSK) council over allegations he may have fraudulently obtained his pupilage certicate. LSK chairman Eric Mutua said the council would investigate all the allegations before making a decision. For now, we cannot speculate on what measures will be taken if the allegations are true because we still have to discuss the complaints at length as a council, Mr Mutua said at the LSK oces in Nairobi yesterday.
10 | National News
Judges start review of court rules

Judges of the Supreme Court are meeting in Mombasa to review the rules governing their operations. Chief Justice Willy Mutunga said the changes were being suggested to structure the operations of the court in line with its relevant mandate. Dr Mutunga said while opening the seminar at Pangoni resort yesterday that although the rules were meant for legal practitioners, they would also consider the needs of the public. They should be made easy to understand and relate with especially for litigants, he said yesterday. Participants, he added, should pay attention to discussing and criticising sections of the rules that may be in contention and address them upfront. The seminar has brought together all Supreme Court judges including Dr Mutunga and Justices Smokin Wanjala, Philip Tunoi, Mohammed Ibrahim, Jackton Ojwang and Njoki Ndungu. Other participants include Fida, Law Reform Commission, the State Law oce, Kenya National Human Rights Commission (KNHRC) and the Law Society of Kenya. Dr Mutunga noted that in its quest to make access to justice easy and transparent, the Supreme Court should, however, not be drowned with applications that have no basis, as this would amount to an abuse of the court process. We do not want people to le baseless applications, he said.
MIXING| Farmers at fertiliser rm
ASSEMBLY SLOTS | Campaigns are in top gear
Battle looms over EA Parliament jobs

Bitter rivalry to erupt within each of the main coalition parties on nominations
BY NJERI RUGENE
nrugene@ke.nationmedia.com
AND ALEX ATUHAIRE

aatuhaire@ug.nationmedia. com
Baseless applications
A worker at the Homa Lime company in Muhoroni where Super Calcium fertiliser is manufactured. The fertiliser is bought from the MEA company Ltd for blending with others to reduce the soil acidity and to aid in productive agriculture.
JACOB OWITI | NATION
ampaigns for membership to the East African Parliament are in top gear locally, with bitter rivalry within each of the main parties of the grand coalition resurfacing to haunt the nominations. Unlike in the past, those interested in being MPs in the East African Legislative Assembly (EALA) must apply through Parliament but have to indicate their political parties. Clerk of the National Assembly Patrick Gichohi said that his office had started receiving applications, whose deadline is Thursday. Our intention is to have the process done in the most transparent manner, said Mr Gichohi, adding that applications should be submitted to Parliament between 8am and 5pm. Names of those chosen by the parties will be de-
Our intention is to have the process done in the most transparent manner,
Clerk of the National Assembly Patrick Gichohi
bated by the House for approval or otherwise, after undergoing vetting by Parliaments Committee on Defence and Foreign Relations. According to election rules of picking MPs to the assembly, each member State is required to select nine members from parties represented in their Parliaments. Mr Gichohi said the nomination and election should be completed by June 4, when the term and mandate of the current assembly ends. Nomination of candi-
dates by the main coalition partners ODM and PNU is likely to be as protracted as it was ve years ago because of intra-party dierences. In ODM, MPs allied to Eldoret North MP William Ruto are unocially out of the party after a fallout with Prime Minister Raila Odinga, dividing it down the middle. However, those in Mr Rutos group have indicated that they will demand nomination of candidates acceptable to them. Yesterday, Belgut MP Charles Keter, a close ally of Mr Ruto, said their side would expect to abide by the rules of basing nomination on region and gender balance, and acceptable to both sides in the party. PNU will also be expected to full expectations of its aliate parties in the House, including Narc Kenya that is led by presidential hopeful Martha Karua. In Uganda, nomination to the assembly has also been hit by similar wrangles, with the opposition Democratic Party, one of the minorities in Parliament, petitioning the East African Court of Justice, seeking its interpretation as to why it has been denied representation to EALA.
Trader sues bank for illegal sale of house

The owner of a collapsed tour company has accused a bank of fraudulently selling her house. Kenya Commercial Bank auctioned Ms Irene Jepkemboi Chumos house in 2006 after she allegedly failed to repay a Sh1.3 million overdraft. Ms Chumo, who was the managing director of Tenluck Travels Services, told the commercial court in Nairobi yesterday that the bank auctioned her house in Ayany, Kibera, in haste, secretly and at an undervalued price. She wants the bank to return her house and compensate her for the rent collected from the property since she was kicked out by auctioneers in September 2006. She claims she lost rental income of Sh74,000 per month. She also wants the bank to compensate her for loss of quiet possession of the property and for mental anguish and torment. However, the bank denied that the sale was secretive and had her conrm in court that she attended the auction. The banks lawyer, Mr Martin Munyu, also had her conrm that she was aware of the consequences of using the property as security for the loan.
Sh1.3m
The overdraft the bank says it advanced the businesswoman
The lawyer said Ms Chumo had earlier obtained a conditional injunction barring the sale of the house but failed to meet a condition that she pays the bank Sh150,000 before the auction. Ms Chumo insisted that she paid the money in the stipulated time. The hearing continues on July 2.
National News 11
STRIKE | Workers resolve to start strike tomorrow

Some of the more than 3,000 members of the giant Dockworkers Union listen to and applaud their secretary general Simon Sang who addressed them outside the KPA Makande Gym at the weekend. The union said that a seven-day strike notice they issued to the KPA management over unresolved labour disputes ends today.
GIDEON MAUNDU | NATION
BRIEFLY
NAIROBI
Journalist charged with phone theft

A journalist was yesterday charged in a Nairobi court with stealing a mobile phone. Mr Mohamed Ali, known for his investigative reports Jicho Pevu on KTN, denied the charge before chief magistrate Esther Maina. The prosecution alleged he stole a Nokia 8800 worth Sh120,000 from a shop in Nairobi. The magistrate released him on a cash bail of Sh50,000 and hearing was set for May 18.
PROBE | Clinix owner claims 71 of its clinics have been licensed
NYERI
NHIF was warned of ghost clinics

Suspended CEO to blame for mess, director of medical services tells MPs
BY CAROLINE WAFULA
cwafula@ke.nationmedia.com he NHIF management was warned about ghost clinics in the controversial civil servants medical scheme. But the management went ahead and authorised payments to Clinix Healthcare Limited and Meridian Medical Group, the Director of Medical Services, Dr Francis Kimani, told MPs yesterday. Dr Kimani, (right), who sits on the National Hospital Insurance Fund board, made the revelations as city businessman Jayesh Saini conrmed to the parliamentary Health committee that he was the owner of Pharma Investments that owns Clinix. In a late night appearance before the MPs, Dr Kimani said the suspended NHIF chief executive, Mr Richard Kerich, should be blamed for the messy payout and refusing to heed the boards
Sh10 bhang man sent to jail for 18 months

A man has been imprisoned for 18 months for possessing bhang worth Sh10. James Mwangi was handed the sentence by Nyeri chief magistrate Wilbroda Juma after he pleaded guilty to having one roll of bhang. The court heard that police received a tip-o that Mwangi was dealing in drugs and on searching his house, found the bhang under a mattress.
advice. The CEO is responsible for the mess in the NHIF scheme. The board was not involved, said Dr Kimani who is also the Medical Practitioners and Dentists Board registrar. Health committee chairman Dr Robert Monda said the team was convinced that fraud was committed and that Clinix played a major role. I indicated that soon we will tell Kenyans who is fooling who and today Clinix has treated us and Kenyans to something close to a comedy, Dr Monda said. Dr Kimani said he tabled a list of 62 ghost facilities which had been accredited by NHIF
yet they were not registered to operate. Clinix has since managed to secure licences for 50 new outlets established between January and April this year. But according to Dr Kimani the licences are yet to be approved by the board, which sits on a quarterly basis. It also emerged that Meridian has only secured a licence for one outlet since January this year. The registrar who was accompanied by the chairman of the practising committee, Dr Ochiel, told the MPs 45 of the 62 facilities he raised objections to at an
Licence for one outlet
Number of ghost health facilities NHIF management had been warned about by board
62
NHIF board meeting in January belonged to Clinix Healthcare. He said the NHIF board refused to approve the payments and that the matter was a subject of a heated debate. But Mr Saini denied this, saying 71 facilities belonging to the company were licensed. He said his vision was to establish 300 facilities in Kenya, adding that he was renovating close to 70 sites. Mr Saini said he was the owner of Pharma Investments which is registered as an oshore company with a 99 per cent holding in Clinix. Pharma belongs to me. I am the owner. It is the investment vehicle I use to operate business in Africa, he told the MPs. Medical Services minister Anyang Nyongo and his Public Service counterpart, Mr Dalmas Otieno, are expected to appear before the committee today.
MOMBASA
Police seize two and recover arms in raid

Police in Changamwe have arrested two men and recovered an AK-47 rie, two magazines and 82 rounds of ammunition. The arms were hidden in a house under construction at Kwa Shee. Two vehicle number plates suspected to be fake and a machete were also seized. Changamwe police boss Otieno Awour said the suspects had been masquerading as masons. Picture Page 36
12 | Opinion
Lets tread warily on commissioners issue

he appointment of 47 county commissioners has elicited strong responses, with claims that it is a sneaky attempt to claw back on devolution, the centrepiece of the new Constitution. Opinion is divided over the interpretation of various clauses of the Constitution relating to devolution and the Provincial Administration. Proponents of the county commissioners argue they will be responsible for coordinating the functions of the national government at the grassroots level. Right now, the argument goes, they are required to oversee the transition from national to county governments by taking an audit of public assets. Opponents, however, argue that the commissioners are essentially provincial administrators, and their role is likely to duplicate functions of county governments and undermine the principle of devolution. Prime Minister Raila Odinga has rejected the appointments on grounds that he was not consulted, while the chairman of the Constitution Implementation Commission, Mr Charles Nyachae, says President Kibaki did not follow the law. Cutting through the maze, three things stand out. One, the central government requires a system of coordinating its functions at the county level. Two, a framework of restructuring the Provincial Administration has to be formulated through legislation, not administrative at. Three, the appointments should be done within the overall principle of openness and public participation. Rather than turn this into a shouting match between the coalition partners, let the matter be discussed soberly. Transition to devolution is a delicate matter and the authorities should avoid anything that faintly suggests that they want to roll back the process.
PIPE DOWN, GENTLEMEN | Macharia Gaitho
Sudan should quit Abyei
udan should follow the example of the Republic of South Sudan and also withdraw its forces from the disputed Abyei. Jubas decision to withdraw its police force from the disputed area is a gesture of peace that should be replicated by Khartoum. Last year, Sudan overran Abyei and occupied it contrary to the agreement that both sides keep o until the locals decide on their own where they want to belong. Abyei is populated mainly by Ngok Dinka, but the pastoralists Misseriya often trek there for pasture and water around River Kiir. But this ageold arrangement could be threatened if Khartoum continues to occupy Abyei without agreement. A referendum that would have determined the status of Abyei in January last year failed because Khartoum insisted that the Misseriya, who come from the north, should also vote to determine the fate of Abyei. Yet, Khartoum is well aware that the region was given a special administrative status by the Abyei Protocol within the 2005 Comprehensive Peace Agreement. Any unilateral takeover could provoke South Sudan and increase tension being experienced in Southern Kordofan and Blue Nile.
A PUBLICATION OF NATION MEDIA GROUP
LINUS GITAHI: Chief Executive Ocer JOSEPH ODINDO: Editorial Director MUTUMA MATHIU: Managing Editor Published at Nation Centre, Kimathi Street and printed at Mombasa Road, Nairobi by Nation Media Group Limited POB 49010, Nairobi 00100 Tel: 3288000, 0719038000. Fax 221396 editor@nation.co.ke Registered at the GPO as a newspaper
he other day, we were treated to extremely uncivil exchanges between former University of Nairobi colleagues Barrack Muluka and Kibisu Kabatesi, now the mouthpieces, respectively, of Prime Minister Raila Odinga and Deputy Prime Minister Musalia Mudavadi. Even on the coldest days of their long-drawn out and sometimes bitter political divorce, Mr Odinga and Mr Mudavadi never descended to the depths exhibited by their hired guns. Maybe we witnessed the familiar example of feuding politicians being publicly polite and courteous, and wining, dining and cutting business deals, while sending out their minions to cause mayhem. It is instructive that those atop the leadership classes together with their families and economic and social compatriots came out with nary a scratch from the post-election violence even as their mindless followers were hacking each other to death in the most primitive fashion. Mr Muluka and Mr Kabatesi are both fairly welleducated fellows, boasting years of experience in public service or the private sector. None of them cuts the gure of the regular impoverished political thug
Why politicians who would lead us must always mind their language T
who for a few shillings will go out on the warpath against the perceived enemies of his benefactor. Both are supposed to be communications experts of some sort. Indeed, one of them even participated in the drafting of the Media Council of Kenyas guidelines on election reporting, which expressly forbid the dissemination of messages that may incite hatred or violence. Yet in so readily playing the role of attack dogs, Mr Muluka and Mr Kabatesi reduced themselves to no more the level of sophistication and intellect than the regular fellows who out of desperation would be agreeable to taking up weapons against their neighbours for a few shillings. The curious thing about the whole despicable exchange is that it is not the rst time the two gentlemen have gone hammer and tongs against each other. The latest uncivil discourse, after another diatribe in the media not too long ago, indicates that the diarrhoea they unleash against each other supposedly on behalf of their respective principals is actually rooted in deepseated personal feuds that might go way back to their university years in the late 1970s and early 1980s. In the midst of the latest altercation from their spokesmen, I was informed by insiders in both camps that neither of the principals Mr Odinga and Mr Mudavadi were aware or had approved the drivel that was coming out in their names. It is entirely possible that both the rival presidential candidates, who were recently together in ODM until a noisy split, had not okayed the statements being released by the hired help. In any political campaign, the candidate can hardly micro-manage and must rely on the competence and good judgment of his sta. However, it goes without saying that the sta must work within strictly dened guidelines. On important issues, it is critical that the candidate is fully in the picture and that he or she personally approves the messages put
It is entirely possible that both the rivals, had not okayed the statements being released by the hired help
out in his name. Therefore Mr Odinga and Mr Mudavadi cannot evade responsibility for the excesses of their sta. Private messages that they were not aware will not do. Both must come out publicly and disown statements put out in their names. They must also apologise, rst to each other, and secondly and more important, to Kenyans whom they have subjected to such cheap and outrageous theatrics. If the principals cannot humble themselves enough to do the decent thing, then Kenyans will have no options but to conclude that Mr Muluka and Mr Kibisu acted with the full knowledge and approval of their employers. And Kenyans will, of course, wonder why those who want to lead them are perfectly happy with the skeletons hidden in the cupboards of their allies; but quickly come out with selfrighteous indignation when there is a falling out. Hell hath no fury like a Kenyan politician scorned. This message, by the way, is not just for Mr Odinga and Mr Mudavadi. It is also for all the others oering themselves to lead us. mgaitho@ke.nationmedia. com.
Opinion 13 THE CUTTING EDGE

BY THE WATCHMAN
WHY NOT GITHONGO? Parliament may have nally given the nod last week for former Kenya Revenue Authority commissioner Mumo Matemu to become the new anti-corruption chief, but G. McKnight strongly feels that the best person for the key position was bypassed. To McKnight, the best candidate was none other than a former holder of the position, ex-PS John Githongo. Surely, wouldnt Githongo be the right man to head our anti-corruption commission? he poses.
RIPPED OFF. After Irene Wanjiru Njuguna cleared her maternity bill of Sh10,590 at Kenyatta National Hospital on February 5, the payments sections sta scrutinised her National Hospital Insurance Fund card and found that it was not up-to-date, despite her monthly contributions. She then led a claim (Ref No NRB/G/2532/12), but the Fund paid only Sh2,400 by cheque, claiming that was all she was entitled to. Her further complaints have fallen on deaf years, says Irene, whose contact is Tel 0725237191. POTHOLE ESTATE. Business is booming in Eastleigh, thanks to the increasing investments, especially in shopping malls, but the roads are in a horrible state, laments Steve Muthami. The worst, he adds, is the road from Pumwani Maternity Hospital to the former KBS Garage and all the way to the popular Garissa Lodge shopping mall. The potholes have potholes inside them and can damage any vehicle, including lorries and matatus. Eastleigh, of course, generates billions for the economy, says Steve, whose contact is smuthami007@gmail.com.
LEGACY IN PERIL | Jackson Mwalulu
inally, President Kibaki has shown his true colours concerning the International Criminal Court, cases facing four Kenyans. In his recent State of the Nation address, he expressed his desire to have the cases handled locally. He has followed up on that by lobbying the East African Legislative Assembly to have the cases dealt with by the Arusha-based East African Court of Justice. Hitherto, the Presidents genuine position about the ICC cases has been a matter of speculation. Even the much-maligned global shuttle diplomacy by Vice-President Kalonzo Musyoka a year ago did not send a clear message that he was keen to pull the ICC cases from The Hague. The ICC matter has always incited divided emotions depending on ones political and especially ethnic orientation and background, and the Presidents latest move is sure to trigger a highpitched political cacophony. Yet, as President, Mr Kibaki owes the nation a clear and rm position about a matter that touches directly on the sovereignty of the country, one way or the other. To be sure, it can be argued plausibly that the President is also driven by another motive here. The cases threaten to pluck away one of his most
Bringing the ICC-related cases to Africa makes a great deal of sense F

However, history shows that setting aside money and land for resettlement is one thing, and actual resettlement quite another. Since 2008, bureaucrats and politicians charged with the resettlement have turned the fate of our hapless brothers and sisters into a cash cow. Then there is the question of what happened to the IDPs original shambas. Since every IDP who legally owned a piece of land can locate it, the government should help them to either go back or sell the properties to willing buyers. To allow perpetrators of these violent evictions to keep their loot is to rubber-stamp impunity, and a dangerous curtain raiser to future conagrations. So, is the President right to champion a local solution for the ICC cases? I believe so. In 2009, Parliament voted to have suspects in the post-election chaos taken to The Hague against his advice. Indeed, he appeared in Parliament personally to lobby MPs to vote for a local tribunal. The then excited legislators overwhelmingly humiliated him! A lot of water has passed under the bridge since then. The ICC cases have been dangerously politicised and ethinicised, thus jeopardising national harmony. Secondly, this country is
Courtroom scene at The Hague

loyal and closest friends, Mr Francis Muthaura. The fate of the son of his political mentor, Mzee Jomo Kenyatta, also hangs in the balance. Importantly, the President is also looking at his legacy, only months to his retirement. It is not music to have history record that you presided over a country that stood on the precipice after disputed elections; it is even worse to have history say that you failed to institute a local mechanism to serve justice to the aected, thus necessitating foreign intervention. By allocating both money and land for their resettlement, the President appears determined to put behind him the ignominy of having his own subjects living in exile in their own country.
undergoing a monumental governance transformation. A new, progressive Constitution is in place. The Judiciary is experiencing real radical surgery, and the Police Force is on the road to being a true servant of the people as opposed to an instrument of State oppression. All this is a pointer that Kenya is not a failed State. This calls for this country to be accorded an opportunity to show that all these reforms mean something. On the East African Court of Justice, it should be remembered that suspects in the 1994 Rwanda massacre have been eectively handled at Arusha by a special tribunal. It is the height of contempt for anyone to dismiss both Kenya and the entire East Africa as incapable of serving justice to their own. In his bid to bring the ICC cases home, the President needs to carry along his entire Cabinet. Then, no matter how aggrieved he feels about attempts to link him with ICC cases, Prime Minister Raila Odinga and his handlers need to tone down their rhetoric about The Hague. Kenya needs to approach the next elections as one as opposed to polarised and hostile ethnic enclaves. Mr Mwalulu is a former Taveta MP (jmwalulu@hotmail.com)
A mansion in Runda: Phone reconnection nightmare

NO SIGNAL IN RUNDA. Nairobis posh Runda Estate is a nightmare for Telkom subscribers, moans Dawn Seeger, with the landlines being almost constantly cut o. However, Telkom was able to resolve her billing problem, as a result of which she was being charged outrageous amounts. But they have failed to reconnect Tel Nos 7120453 and 7121189. The latter has been out of order since last October. I continue to receive bills regularly, though I dont understand what for, says Dawn, whose contact dwseeger@jambo.co.ke. IT IS A DISGRACE. The JKIA, Nairobi, is, indeed, a disgrace to the country as Epimach Maritim and others have noted, says Lakhi Bhangra. On arrival from an overseas trip, Lakhi says he was shocked to nd the washrooms had no water. The toilets were lthy as they could not be ushed. I learnt that it was the same in the womens toilets. What impression are we giving to the tourists? The managers should visit Addis Ababa and see what our neighbours are doing, adds Lakhi. His contact is lbhangra@yahoo.co.uk. CASH STOLEN. What is the point of registering phone numbers if one cant get help when in need? asks Carol Odero. She inadvertently sent money by M-Pesa to 0721221781, which was intended for 0721 221787. On realising the error, she immediately called the number, but it had been switched o. She then called Safaricom and to her utter shock, she was told they could do nothing about it as the unintended recipient had already withdrawn the money. Seeking legal redress would cost more than the Sh3,500 I sent, say Carol. Her contact is carolodero@yahoo.com.
Have a helpful day, wont you! .
GOVERNANCE | John B. Osoro
Towards a more inclusive government A

mong the most oensive and comical events reported in recent days is when some Central Kenya MPs featured prominently in the local dailies holding the Bible in a public rally. They were apparently swearing their unwavering support for Uhuru Kenyatta in the forthcoming presidential race. One expected reaction was condemnation of this ungodly act from the Christian clergy and congregations countrywide. Instead, all went quiet as though those were usual political antics. We do not have to write down every rule before leaders can behave decently in public. Indeed, the mark of a well-developed and functioning political system is where most rules of conduct remain unwritten such as the near-strict observance and respect of seniority among US Congresspersons or the organisational function of Washington caucuses held immediately after elections. The history of Kenya has inadvertently created an unwritten rule that forbid taking an oath in support of a political cause or leadership. This is because many politicians have in the past been ejected from a parliamentary seat following ndings by a court of law that the individual concerned administered oaths on voters. The anticipation here is that the
The beauty with political parties is that through manifestos, they can generate policies and programmes which people can identify with
electoral commission should have issued an immediate warning to those engaged in Bible swearing rallies that such oaths may disqualify them as voters and, consequently, as candidates in the next elections. Equally so, this specic event provides future presidential aspirants with enough fodder to raise an election malpractice petition if necessary. Indications that the Independent Electoral and Boundaries Commission is about to engage investigators and prosecutors to deal with election oenders in coming elections is a welcome development. In fact, this department should be on a continuous vigil to identify oending politicians at all times, not only during electioneering periods. Reading through all State instruments governing the conduct of elections in
Kenya, they appear to have one clear mission in mind: elimination of a situation where certain groups of Kenyans remain permanently in opposition or a minority. For instance, using the Bible to bind Kenyans to support an individual politician will permanently condemn nonChristians to a minority status. The same is likely to happen should all Kenyans opt to use tribal associations, instead of political parties, as vehicles for seeking political oce. It is impossible to change ones ethnicity. The beauty with political parties is that through manifestos, they can generate policies and programmes which people can identify with as individuals and not as religious, ethnic, or racial groups making them all-inclusive. Equally important, with regard to the Kenyan political experience, is regional political participation. The most dominant political parties must deliberately ensure that internal party democracy exists and nomination of presidential candidates does not permanently favour those from specic regions. Although the political party system embodies many advantages, left in irresponsible hands, it may eventually lose the condence of the people. Mr Osoro woks with the Centre for Policy Analysis, (osorojb@yahoo.co.nz).
E-mail: watchman@nation.co.ke or write to Watchman, POB 49010, Nairobi 00100. Fax 2213946.
14 | Letters
To the editor
Do not stop attending church due to attacks
The recent murder of two pastors in Mombasa after they were mistaken for robbers ought to be condemned unreservedly. The killing happened hardly a week after a church in Nairobis Ngara area was bombed, most likely by Al-Shabaab. It seems some people are hell-bent to stie the freedom of worship. I urge my fellow Christians to pray that the message of salvation through Jesus Christ may continue being preached. We should also pray for these rogues. Keep going to church, for true Christians should not be scared out of their faith, but be ready to die for it if need be. KARANJA wa KINYANJUI, Kikuyu
The editor welcomes brief letters on topical issues. Write on e-mail to: mailbox@ ke.nationmedia.com. You can also mail to: The Editor, Daily Nation, POB 49010, Nairobi 00100. Letters may be edited for clarity, space or legal considerations.
TALKING POINT
Most against same-sex union, but the law cant be used against gays
he Kenya National Commission on Human Rights released a report with proposals seeking integration of lesbians, gays, bisexuals, trans-gender and inter-sex (LGBTI) persons. This has ignited debate on whether forms of sexual variance should be decriminalised. There is no doubt that the Constitution outlaws same sex marriages through Article 45. However, if there is any gay person who is discriminated against, say in hospital, then this is a clear violation of Article 43 guaranteeing the right to healthcare services and Article 27 (4) outlawing of discrimination. But the Penal Code at sections 162, 163 and 165 still criminalises the so-called unnatural acts This . privileges heterosexuality over homosexuality. Yet supporters of homosexuality argue that to proscribe same sex relationships is to limit sex to the conventional reproductive role, ignoring others such as desire intrinsic to sexuality. The other question is whether religious grounds of opposing homosexuality hold any water. Indeed, the Bible expressly prohibits homosexuality in Leviticus 18:22 do not lie with a man as one lies with a woman; that is detestable . But can such be grounds to shun LGBTI persons when our Constitution at Article 8 provides that there shall be no State religion? The current debate poses several tests. Firstly, is diversity. Can the majority heterosexuals be fair to accept that a considerable percent-
Emails from correspondents
SHORT TAKES
POTHOLED ROADS: Driving in Nairobi is a nightmare for drivers and passengers. The horrible state of roads makes driving feel like the annual Rhino Charge more potholes than road. Roads around Lavington, Argwings Kodhek, Milimani are some of the worst. The Kenya Urban Roads Authority and the City Council are sleeping on the job. The rains are not to blame, they only go to prove that there was shoddy construction in the rst place. Kenya cannot expect to achieve Vision 2030 with potholes on our roads. ROSIE ABOGE, Nairobi RIVER RESERVES: The public should be sensitised not to put up homes near river banks. The rivers may swell even without rain. It can rain elsewhere and oods come sweeping everything on their way like a tsunami. Im told people living near rivers wait to hear the sound of rain drops on their roofs before moving out. Yet it could rain tens of kilometres away on higher grounds and waters cascade down rivers/streams just as happened in Mathare last weekend. River banks should be treated as road reserves. JUSTIN OSEY PETER, Mombasa TWO WRONGS: Steven Mulis good article on causes of trac snarl-ups (Nation, May 9) was marred by just one statement: Appearing the only coward, these days, I dont stop at red trac lights So, the good brother has joined other motorists who out trac rules! When will we learn to always do the right thing even when others engage in wrong-doing? It is this even others are doing it mentality that is responsible for the ills be-devilling us. Please be a role model motorist. Who knows, some others might emulate you. KIARIE PETER, Laikipia West INSECURITY: It is so unfortunate that there is a lot of insecurity in our country. But chiefs and their assistants no longer work. It is so worrying when robberies are carried out just few kilometres from the Ojola sub-location assistant chiefs oce. Now, Kisumu North DC is aware of this and all he promises is a police post around Chuthber market and this has been said for years. This small up-coming market cannot grow due to insecurity by a few idle youths. Entrepreneurship cannot thrive on insecurity. Local youths should nd jobs in quarries in the neighbourhood. SABATO FAUSTINUS, Kisumu
New team needs fresh tricks to ght graft

The new team at the anti-graft body, EACC, made up of Mumo Matemu, Irene Keino and Jane Onsongo faces a hard task ahead. To start with, they come into ofce when Kenyans faith in the ght against sleaze is at it lowest ebb. Matters are not helped by the debate on the suitability of the three to run the body. My expectation, which I am sure I share with majority of Kenyans, is that the new team will not take the beaten path of their predecessors of buck-passing and being steeped in theatrics instead of service delivery. NICHOLAS CHERUIYOT, Bomet
President Kibaki shows the public the new Constitution after its promulgation at Uhuru Park on August 27, 2010.
age of our population has opted for a dierent sexual expression? The second test is tolerance. Are we willing to aord equal rights to those we dislike or fear, or whose lifestyles we feel are repugnant? If we dismiss gays and lesbians because of discomfort, can the other minority groups be sure that the same fate will not befall them? The third test is religious tenets we hold dear. Are our devout believers willing to co-exist with those who do not subscribe to their faith? LGBTI persons have done their part by having no problem with those who practise heterosexuality. Can Christians and Muslims reciprocate this tolerance?
FILE | NATION
People who believe homosexuality is wrong have a right to hold their opinion, but do not have the right to insist the government and the law must endorse their beliefs. EDWARD KAHUTHIA, Nairobi.
Criminals must stop impersonating askaris

I could not conceal my joy after a fake council askari was cornered by wananchi and later handed over to the police. He operated in parking zones on Muindi Mbingu, Biashara and Koinange streets. A few years ago I suered harassment from similar impersonators. They claimed that I had broken a non-existent ower bed. Often, these askaris possess fake identity cards as well as receipt books. Whenever they corner an oender, the mention of City Hall acts as their ATM since many opt to pay a bribe as opposed to the suering in a city council cell. The days of such bogus ocers are numbered. NJOROGE KIRATU, Nyahururu
I would like to highly condemn in the strongest terms possible, Sunday Nation columnist Prof Makau Mutua for supporting gays. It looks like living in the most immoral and sinful country on earth has inltrated his mind with liberal views at the expense of reason and morality. FRED G. MBURU. Nairobi
Reason and morality
Schools should start teaching Government should help those Chinese to cope with new order made homeless by the oods
China is fast emerging as the top world superpower. It has taken over most projects like road construction and telecommunications in African nations to the chagrin of the western powers. Perhaps we should start teaching Chinese language early, not just to cope with the current wave, but to secure our future trade with China. Zambia has set up a centre to learn Chinese, as has Uganda. Surely there is no better time to learn Chinese than now to cope with globalisation. Kenyan schools should start teaching Chinese. MOTARI DAVID, Nairobi As the rains continue wreaking havoc across the country, the government should help those aected by providing alternative housing. Most families have been left homeless after their houses were swept by the oods as reported by the Nation yesterday with regard to Mathare. Those whose homes are spared by the oods are only left to ght mosquitoes and other health hazards. Politicians who are busy campaigning should instead take time and visit those aected and provide a solution to their problems. SAMWEL BORN MAINA, Kisii
YESTERDAYS QUESTION
DEBATE QUESTION
Was US president Barack Obama right to support same-sex marriages?

MUSTWAFA BADAWY: No. Same-sex marriages are a sin and if something is sinful it should not be practised. Why should there be samesex marriage when women are there to be married? SAMUEL ILOVE: America is a land of freedom and opportunity, so what did you expect? DENNIS JOHNSTONE ONYINO: All I know there is only opposite sex marriage KURIA GABRIEL: No, he wasnt. Gayism should not be used as political tool to lure voters. Same-sex marriages have no cultural or religious backing. KASALE DICKSON: His opinion must be respected. WANYONYI CHEBUKATI: No. Obama is hunting for votes the wrong way. Such unnatural acts must be condemned by all who do and think right. Even animals dont have sex with those of the same sex. Gods patience is running out. He will destroy all these gays as he did in Sodom and Gomorrah.
Was President Kibaki right to appoint county commissioners?

Send your comments to: mailb ox@ke.nationmedia.com
15
16 | News
The Board of Directors of National Bank of Kenya Limited hereby announce the unaudited results for the first quarter ended 31 March 2012
PROFIT AND LOSS ACCOUNT
for the quarter ended 31 March 2012 1 1.1 1.2 1.3 1.4 1.5 2 2.1 2.2 2.3 2.4 3 4 4.1 4.2 4.3 4.4 4.5 4.6 5 6 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 7 8 9 10 11 12 Interest Income Loans and advances Government securities Deposits and placements with banking institutions Other Interest Income Total interest income Interest Expense Customer deposits Deposits and placements from banking institutions Other Total Interest Expenses Net Interest Income Non-Interest Income Fees and commissions on loans and advances Other fees and commissions Foreign exchange trading income (loss) Dividend Income Other Income Total Non-Interest Income Total Operating Income Other Operating Expenses Loan loss provision Staff costs Directors emoluments Rental charges Depreciation charge on property and equipment Amortisation charges Other operating expenses Total Operating Expenses Profit before tax and exceptional items Exceptional items Profit after exceptional items Current tax Deferred tax Profit after tax and exceptional items 31-Mar-12 Shs000 Un-audited 1,413,834 741,604 112,521 2,267,959 914,182 4,195 918,377 1,349,582 42,149 296,065 59,108 222,842 620,164 1,969,746 31-Dec-11 Shs000 Audited 3,517,135 2,879,939 60,923 6,457,997 1,232,331 144,556 1,376,887 5,081,110 312,664 1,149,208 310,015 942,142 2,714,029 7,795,139 31-Mar-11 Shs000 Un-audited 743,247 749,550 4,328 1,497,125 184,496 4,853 189,349 1,307,776 56,653 327,623 86,469 92,028 562,773 1,870,549
BALANCE SHEET
as at 31 March 2012 A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 B 23 24 25 26 27 28 29 30 31 32 33 34 35 C 36 37 38 39 40 41 42 43 44 Assets Cash (both local and foreign) Balances due from Central Bank Of Kenya Kenya Government securities Foreign Currency Treasury bills and bonds Deposits and balances due from local banking institutions Deposits and balances due from banking institutions abroad Government and other securities held for dealing purposes Tax recoverable Loans and advances to customers (net) Investment securities Balances due from group companies Investment in associates Investment in subsidiary companies Investment in joint ventures Investment in properties Property and equipment Prepaid lease rentals Intangible assets Deferred tax asset Retirement benefit asset Other assets Total Assets Liabilities Balances due to Central Bank of Kenya Customer deposits Deposits and balances due to local banking institutions Deposits and balances due to foreign banking institutions Other money market deposits Borrowed funds Balances due to group companies Tax payable Dividends payable Deferred tax liability Retirement benefit liability Other liabilities Total Liabilities Shareholders Funds Paid Up/Assigned Capital Share Premium/(discount) Revaluation reserve Retained Earnings/(Accumulated losses) Statutory Loan Loss Reserve Proposed Dividends Capital grants Total Shareholders Funds Total Liabilities & Shareholders Funds
31-Mar-12 Shs000 Un-audited 2,313,910 5,408,509 26,369,391 407,068 624,318 760,491 28,495,708 62,872 19,963 2,652,046 11,578 787,117 2,294,215 70,207,186
31-Dec-11 Shs000 Audited 2,250,352 3,314,646 25,849,231 2,581,409 806,782 828,868 28,068,218 62,872 19,963 2,740,003 11,615 402,400 1,728,157 68,664,516
31-Mar-11 Shs000 Un-audited 2,024,093 5,022,734 18,794,685 2,272,620 1,482,090 10,052,477 23,510,521 48,053 19,963 2,409,406 11,726 49,641 2,119,010 67,817,019
100,000 766,135 17,148 50,484 84,366 40,225 425,215 1,483,573 486,173 486,173 (161,116) 325,057 31-Mar-12 Shs000 Un-audited 1,198,742 62,836 1,135,906 954,461 181,445 181,445 11,844 2,984,003 2,995,847 4,206,843 64,800 4,271,643 9,738,976 700,000 9,038,976 427,357 10,166,333 35,116,526 17% 8% 9% 28% 8% 20% 29% 12% 17% 33% 20% 13%
692,423 2,635,180 75,438 118,488 314,974 37,756 1,477,030 5,351,289 2,443,850 2,443,850 (1,073,467) 175,730 1,546,113 31-Dec-11 Shs000 Audited 1,196,826 42,151 1,154,675 854,456 300,219 300,219 11,233 2,888,391 2,899,624 4,211,887 64,800 4,276,687 9,576,447 700,000 8,876,447 427,357 10,003,804 34,286,442 17% 8% 9% 28% 8% 20% 29% 11% 18% 34% 20% 14%
50,000 688,735 15,132 38,297 69,177 6,507 535,538 1,403,386 467,163 467,163 (235,687) 231,476 31-Mar-11 Shs000 Un-audited 1,002,633 34,033 968,600 735,623 232,977 232,977 11,024 2,458,071 2,469,095 4,900,702 55,200 4,955,902 8,178,099 500,000 7,678,099 365,675 8,543,774 29,749,281 15% 8% 7% 27% 8% 19% 28% 12% 16% 42% 20% 22%
58,057,848 150,145 21,976 485,391 21,478 24,570 664,247 59,425,655 7,075,000 603,559 2,826,505 276,467 10,781,531 70,207,186
56,728,163 155,613 21,976 322,357 21,728 24,570 933,635 58,208,042 7,075,000 603,559 2,501,448 276,467 10,456,474 68,664,516
52,802,004 457,079 21,976 147,388 10,512 200,300 4,016,676 57,655,935 7,075,000 643,098 1,218,836 204,900 1,019,250 10,161,084 67,817,019
OTHER DISCLOSURES
1 Non-performing loans and advances a Gross non-performing loans and advances Less: b Interest in suspense c Total Non-performing loans and advances (a-b) Less: d Loan loss Provisions e Net NPLs exposure (c-d) f Discounted Value of Securities g Net NPLs exposure (e-f) a b c d Insider loans and Advances Shareholders and associates Directors Employees Total insider loans, advances and other facilities
MESSAGE FROM DIRECTORS Total operating income increased by 5% over the same period last year. Profit before tax of Sh 486 M was 4% above the first quarter 2011 of Sh 467 M while profit after tax increased by 41%. DIVIDENDS The directors do not recommend the payment of an interim dividend. CONSOLIDATION Consolidated financial statements have not been prepared as the subsidiary companies are dormant and the amounts involved are not material. APPROVAL The un-audited financial statements are extracts of the financial statements and records of the Bank which were approved by the Board of Directors on 30 April 2012. BOARD OF DIRECTORS M.A.Hassan S.M.Kitonga (Ms) M.E.G.Muhindi F.L.Atwoli Eng. E.K.Mwongera
Off-Balance sheet items a Letters of credit, guarantees and acceptances b Other contingent liabilities c Total contingent liabilities a b c d e f g h I j k l m n o a b c Capital Strength Core capital Minimum Statutory Capital Excess/(Deficiency) (a-b) Supplementary capital Total capital (a+d) Total risk weighted assets Core capital/total deposit liabilities Minimum Statutory Ratio Excess/(Deficiency) (g-h) Core capital/total risk weighted assets Minimum Statutory Ratio Excess/(Deficiency) (j-k) Total capital/total risk weighted assets Minimum Statutory Ratio Excess/(Deficiency)(m-n) Liquidity Liquidity Ratio Minimum Statutory Ratio Excess/(Deficiency)(a-b)
P.S.Treasury National Social Security Fund
R.M.Marambii I.M.Mworia A.N.Ismail L.G.Kamweti - Company Secretary
REGISTERED OFFICE National Bank Building, 18 Harambee Avenue, Nairobi. P.O. BOX 72866, 00200, Nairobi. Telephone 2828000, 0711038000, 0732018000 Fax 311444. E-Mail : info@nationalbank.co.ke Website : www.nationalbank.co.ke
www.nationalbank.co.ke
Special Report 17
DEVELOPMENT GOALS | Report recommends reducing the cost of energy
Thika Super highway, a Vision 2030 project
FILE | NATION
Pillars to speed up Vision 2030 all below target

Poor scores in Tourism, agriculture, manufacturing, infrastructure and ICT means the vision would not come true in about 20 years
BY JEREMIAH KIPLANGAT
jkiplangat@ke.nationmedia.com
BACKGROUND
Assistant Planning minister Peter Kenneth (left) and PS Edward Sambili during the launch of the Third Annual Progress Report on Vision 2030 last Tuesday at KICC Nairobi.
SALTON NJAU | NATION
Performance scorecard
Vision 2030 short-term goals are yet to be achieved following dismal performance of the key sectors of the economy tourism, agriculture, industry and energy. The Annual Progress Report prepared by the ministry of Planning, National Development and Vision 2030 critically looks at the steps made so far towards the realisation of the vision launched by President Kibaki in 2008. The main aim of this is vision is to uplift the country to a middle-income economy. In the push towards this vision, the government launched the National Integrated Monitoring and Evaluation Systems (NIMES), an organ closely monitoring the distance covered by government as far as implementation of its policies, projects and programmes is concerned. The ministry of planning has embraced NIMES and uses it as part of the indispensable activities of the drive towards achieving the vision.
Equally, the agriculture sector continues to face problems as seen in the inability to adequately feed the population. But Planning assistant minister Peter Kenneth said the improving road infrastructure and the recent discovery of oil in Turkana would immensely boost the drive towards the vision. He said it was possible to achieve it in a shorter time if the Gross Domestic Product growth shoots to 10 per cent. That remains to be seen. However, the most viable way to arrive at the growth rate is through quickening the pace of Gross Value Added growth, the report quipped.
f Vision 2030 is to be realised on time, then key sectors of the economy have to be transformed fast. Tourism, agriculture, manufacturing, infrastructure and Information and Communication have underperformed over the last year, according to the latest report tracking their performance. Their poor score means the vision would not come true in time as the sectors signicantly contribute to the realisation of the national dream in about 20 years. The report, Third Annual Progress, by the Ministry of Planning, National Development and Vision 2030, released last Tuesday said the targets supposed to speed up the vision did not perform as planned, contributing to the sluggish push towards the vision. Jobs creation, another vital contributor, was not as impressive as expected, as the number of jobs created fell short of the targeted gure. The report specifically recommends reducing the cost of energy in order to encourage manufacturers to increase investment and boost the sector. Electricity costs have gone up in recent years, a factor that has pushed the manufacturing sector to the wall. This is alluded to by the Kenya Association of Manufacturers which says on its website that the major factor inhibiting growth of a textile industry (and other sectors) in Kenya is the high cost of electricity and its unreliability which accounts for 35 per cent of the cost of fabric production, compared to 16 per cent in India.
According to the report, energy problems could be solved if other sources of energy such as coal, wind, and geothermal were fully exploited. The ministrys permanent secretary Edward Sambili said progress had been made towards achieving the main objectives of the blueprint, but pointed at the failures, saying much has to be done to bring all the sectors at par. But not all aspects of the key sectors that scored poorly were to blame. The PS, for example, praised ICT for its tremendous growth, saying it had brought signicant benets to the economy.
740,000
During the period captured in the report, for instance, only 503,500 jobs were created far less than the projected 740,000
ICT has remarkably grown. The faster Internet occasioned by the arrival sea cables has improved the way communication is done. This has attracted high-end investors, Dr Sambili said during the launch. Despite this, the report points at the challenges facing the Business Process Outsourcing, an indispensable section of ICT sector. It was found that there existed such problems as cable vandalism, systems incompatibility, computer hardware and software counterfeits and loose cyber security. Dr Sambili also singled out the roads sub-sector for praise, pointing out some of
the landmark roads Thika Highway and the ongoing construction of the Eastern by-pass as important contributors to the expansion of the economy. The industry sector was sluggish too, returning a poor growth of 4.4 per cent against a target of 10.2. This was due to weak performance in the food, beverages and tobacco manufacturing sub-sectors. Last years economic survey recorded dismal performances in the same sectors revealing the snails pace at which the key vision drivers were being accomplished. The report tracks achievements in line with the demands of Vision 2030 the nations dream of uplifting the economy to a middle income status that was launched in 2008 by President Kibaki. The latest report covering June 2010 to June 2011 and focuses on the rst ve-year Medium Term Plan (2008-2012) warns that the key pillars of the vision are yet to be satised ve years after its launch. Increased employment is one of the foundations upon which the vision is set. Job opportunities were to be created to enable faster absorption of the ballooning number of unemployed youth supposed to turn around the countrys productivity. However, this dream is yet to be achieved ve months into the last year of the ve years encompassed in the medium term plan. During the period captured in the report, for instance, only 503,500 jobs were created far less than the projected 740,000 an indication that some distance has to be covered to full the demands. The Tourism sector was as feeble as the others. The number of tourists, 1.6 million, was short of the expected 2.6 million.
Hunger remains the biggest obstacle to growth, says Africa report

BY PETER OBUYA
potieno@ke.nationmedia.com Hunger remains the greatest obstacle to economic growth in most Sub-Saharan countries including Kenya, a report to be launched this morning shows. The Africa Human Development Report 2012 to be launched by President Kibaki today further reveals that hunger and malnutrition remain despite food surpluses and ample agricultural endowments. With more than one in every four Kenyans undernourished, the country remains among the worlds most food-insecure countries in the league of Djibouti, Ethiopia and Somalia. Kenya experiences perennial hunger that threatens the lives of about 10 million people annually. The report says that over 40 per cent of children under the age of ve years are malnourished and the number is projected to rise.
Kenya yet to eliminate hunger that aects nearly a quarter of its population
Africa Human Development Report 2012
Growing more food and uplifting the economic status of women are among a raft of policies the report
recommends. When given access to the same inputs as men, women will raise the yields by between 20-40 per cent, argues the report that says women have no control over their own lives. Kenya is yet to eliminate hunger and malnutrition that aects nearly a quarter of its population despite posting impressive GDP growth. With more than 15 million people at risk in the Horn of Africa, the report urges for urgent measures to counter
the impending catastrophe. Kenya has been listed as a country with ample agricultural land, plenty of water and favourable climate for growing food. Misguided policies and weak institutions are among the obstacles to food security. The report further castigates decades of poor governance and selfserving elites quick to benet from graft and patronage as other factors that have caused the chronic food insecurity witnessed across Africa.
18 |
ATHI WATER SERVICES BOARD
INVITATION TO TENDER
Rift Valley Railways Kenya Ltd invites tenders from interested suppliers (Bidders) for the provision of: Tender No. RFQ12010 Tender Description Construction and commissioning of Data Center in Nairobi. This will be a standard TIA-942 Data Center to include raised floors, HVAC, UPS backup and fire suppression. Tender Sale Commencement Date 15th May, 2012 Closing Date 4th June, 2012
Country: Kenya Name of Project: Water and Sanitation Service Improvement Project (WaSSIP) CONSULTING SERVICES Credit No: IDA 4376-KE Contract No. is AWSB/WaSSIP/Comp.1/C-33/2011 REQUEST FOR EXPRESSION OF INTEREST FOR CONSULTANCY SERVICES TO UPDATE THE ASSET VALUATION REPORT OF 2007 AND DEVELOPMENT OF AN ASSET MANAGEMENT REGISTER FOR ATHI WATER SERVICES BOARD. 1. This Request for Expression of Interest follows the General Procurement Notice (GPN) for this project that appeared in Development Business, issue No. 715 of 30th November 2007. 2. The Government of Kenya has received a credit from International Development Association (IDA), and intends to apply part of the proceeds to engage the services of a consultant to provide technical assistance in updating the asset valuation report undertaken in year 2007 develop an asset inventory database and develop an asset register for the whole of AWSB Area of Jurisdiction. 3. The objective of the study is to develop a clear delinked asset register which will include the proposed cross county systems, county WSP systems, Distribution systems and sewerage systems. 4. The services required will include: (a) Update of the Asset Valuation report prepared for AWSB in 2007 and provides a report of the Way leaves and the status of Ownership. (b) Follow up with the Ministry of Land on the ownership of the Land on which the water and sewerage infrastructure and facilitate the registration of the said parcels of land in AWSBs name. (c) Develop an asset Inventory database incorporating GIS diagrams. (d) Design an Asset Management Information System Structure. (e) Develop an asset register which will include: Asset data, cost data, asset lives, condition grades, performance grades and the criticality of the assets. (f) Delineate the assets register to be in compliance with the county structure of government. The asset register should provide for cross county systems Water and sewerage Infrastructure and also the Water and sewerage Infrastructure that will be operated by the water service provider at the county level. (g) Facilitate a Workshop to discuss the draft final report. 5. The Athi Water Services Board now invites eligible consultants to indicate their interest in providing the services. Interested consultants must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc). 6. The assignment will be for a period not exceeding six (6) months. Total Staff inputs for the assignment are expected not to exceed 6 staff months 7. Consultants may associate to enhance their qualifications. 8. A consultant will be selected in accordance with the procedures set out in the World Banks Guidelines: Selection and Employment of Consultants by World Bank Borrower, May 2004 (Revised October 1, 2006). 9. Interested consultants may obtain further information at the address below from 0800 to 1700 hours from Monday to Friday excluding lunch hour (1300 to 1400Hrs) and public holidays. 10. Expression of interest must be delivered or submitted by electronic mail to the address below by 31st May, 2012 at 12.00 noon. Chief Executive Officer Athi Water Services Board Africa Re-Centre, Hospital Rd P.O. Box 45283-00100 Nairobi, Kenya. Tel: +254 20 2724292/3 Fax: +254 20 27224295 Email: info@awsboard.go.ke CHIEF EXECUTIVE OFFICER ATHI WATER SERVICES BOARD
Tender documents detailing the requirements may be obtained at the Reception, on the Ground floor, Railway Headquarters, Haile Selassie Avenue, Nairobi, Kenya, on normal working days beginning 14th May, 2012 between 9.00 a.m. to 12.30 p.m. and 2.00 p.m. to 4.30 p.m. upon payment of a non-refundable fee of Kenya Shillings Three Thousand Only (KShs. 3,000/=). Payment shall be made in Cash or by Bankers Cheque at the Rift Valley Railways Ltd, Headquarters Building, Haile Selassie Avenue, Ground Floor, Pay Office. This tender requires a mandatory site survey to be held on 24th & 25th May, 2012. All bidders are required to request for an appointment Complete tender documents in plain sealed envelopes clearly marked with the Tender No. and Tender Description as more particularly described in the tender documents should be addressed and delivered to: General Manager, Procurement & Materials Management Rift Valley Railways (Kenya) Ltd and Rift Valley Railways (Uganda) Ltd RVR Head Office, Haile Selassie Avenue, Station Road P.O. Box 62502-00200 Nairobi, Kenya To be received not later than 4.00 p.m. (East African Time), on the tender closing date shown above. Save when responding to RVRs request for clarification, bidders shall not contact or discuss any aspect of their tender with RVR after the closing date before receipt of notification of award of tender or letters of regret as applicable. Any such contact shall lead to disqualification of the tenders.
World News 19
TROUBLE SIGNS German Chancellor Angela Merkels party suers massive defeat in state poll P.28
WORLD
KICKED OUT | North sends neighbouring states citizens packing
BRIEFLY
DAKAR
164 South Sudanese arrive home as airift from Khartoum begins
Senegalese singer to appear at Olympics
Senegalese singer Baaba Maal (pictured) has announced plans to show the world all Africa has that is beautiful during the Olympic Games in Britain in the summer. People have given me a a responsibility that is imminent. During the Olympic Games in London (from July 27 until August 12), there will be ve platforms that represent the ve continents, Maal, 58, said in a weekend interview at Wodebere in northeast Senegal while on tour. For the African continent, I shall work with the South Bank cultural complex at the heart of Britains capital to present everything that Africa has that is beautiful, he told AFP.
COTONOU
Ethnic South Sudanese board a plane to y home at Sudans Khartoum airport yesterday as an airlift of up to 15,000 South Sudanese began. The rst plane chartered by the International Organisation for Migration (IOM) in the early morning carried around 160 South Sudanese, some of whom have spent their entire lives in the north, and many have been living in makeshift shelters or barn-like buildings for up to a year.
ASHRAF SHAZLY | AFP
Group part of 12,000 to 15,000 waiting to to leave transit camp
JUBA, Monday
he first batch of up to 15,000 South Sudanese to be airlifted from Khartoum were welcomed in their homeland today, after they were ordered to leave Sudan for the newly independent South. The rst plane, chartered by the International Organisation for Migration (IOM), landed in the Souths capital Juba carrying 164 South Sudanese. We are very happy... the citizens have arrived safely, said Joseph Lual Acuil, the Souths Minister of Humanitarian Aairs, who was among ocials waiting at Juba airport as the returnees arrived. They are among a group of 12,000-15,000 South Sudanese who are waiting to leave the crowded Kosti transit camp south of Khartoum. Kosti became home to the biggest single concentration of South Sudanese awaiting transport , and many have been living there in makeshift shelters or barn-like buildings, waiting several months to travel South. Sudans authorities declared the migrants a security threat and initially gave them a May 5 deadline to leave, sparking concern from the United Nations and the IOM, which has already helped thousands of South
Sudanese to head home. Ocials extended the deadline to May 20 but then told the IOM to disregard the time limit after plans for the airlift were devised. Sisto Caesar, from the Souths Eastern Equatoria state, arrived in Juba with his ve children, some of whom were born during the 14 years he spent in Khartoum, where he ed during Sudans 1983-2005 civil war. Life was not bad, but recently things started becoming hard, Caesar said. I have arrived home, and I am very happy. The returnees will stay initially a camp in Juba before later travelling on to the villages they came from originally. Vincent Houver, head of IOM in South Sudan, said two ights were scheduled Monday, with ights later increasing to up to eight a day. They will be returning gradually over the next two weeks, Houver said. Over 376,000 ethnic Southerners many of whom have spent decades in the north have returned to the South since October 2010. However, up to 500,000 remain in the north, despite the passing of a six month grace period for them to either formalise their status or leave
Returning gradually
Sudan, after the South separated and became independent in July 2011 following a two-decade long conict. It is my rst time to the South. I was born here, Cecilia Peter, 27, said through a translator as she lined up for a boarding pass with her ve tiny children. Peter said the family had spent 13 months in Kosti, after losing her job as a teacher. All ethnic Southerners were dismissed from Sudans civil service ahead of South Sudans independence last July under a peace deal that ended 22 years of civil war which killed two million people and drove many more to the north. The South Sudanese in Kosti are among about 350,000 ethnic Southerners who the South Sudanese embassy estimates remain in the north after an April 8 deadline to either formalise their status in the north or leave the country. Hundreds of thousands of others have already gone to South Sudan. Asked whether she could not get documentation to stay in the north, Peter said simply, No. Passengers on the IOM ights do not require individual travel documents. Peter said her husband will accompany the familys luggage by truck to Renk, just over the border in South Sudan. Luggage
Life was not bad, but recently things started becoming hard... I have arrived home, and I am very happy
Sisto Caesar, from the Souths Eastern Equatoria state
is a big concern for the returnees, who want to bring as much as possible to South. Adelino Jovida, 31, also lost his government job, as a policeman in Gedaref state, and then spent 11 months in Kosti. He said he came to northern Sudan from the South in 1983 when he was about as young as the small child sitting in his lap. His wife and their other infant sat beside him, in the waiting room of the airport terminal normally used by people travelling to Mecca for the hajj. Although this is his rst trip back to the South Jovida said, unsmiling, Im happy to be able to see my relatives again. One older woman in a blue floral shawl shuffled through the terminal in yellow sandals, with a long wooden walking stick. (AFP) TO COMMENT ON THESE AND OTHER STORIES GO TO www.nation.co.ke
No AU ban on Bashir at Malawi summit

The African Union has no reason to bar Sudanese President Omar al-Bashir from the pan-African groupings summit in Malawi in July, a minister said on Monday. Bashir is wanted by the International Criminal Court (ICC) on charges of genocide, crimes against humanity and war crimes in Sudans troubled Darfur region. The chairman of the African Union has no reason not to invite President Omar al-Bashir, Benins Foreign Minister Nassirou Arifari Bako told journalists. Malawis new President Joyce Banda said earlier this month that she wanted Sudans leader to stay away from the summit to avoid straining ties with key donors. (AFP)
UNITED NATIONS
Seven peacekeepers wounded in Congo

A crowd surrounded a UN peacekeeping unit in eastern Democratic Republic of Congo on Monday and opened re, wounding seven Pakistani peacekeepers, UN ocials and diplomats said. Other peacekeepers in the contingent were hurt by stones thrown by the 1,000-strong crowd around the base in the Bunyiakiri district of South Kivu province, said UN spokesman Martin Nesirky. The peacekeepers were Pakistanis, according to diplomatic sources. The wounded were taken to hospital in Goma, main city in eastern Congo. (AFP)
20 | Africa News
REPUBLIC OF KENYA
INSTABILITY | Security woes in region
OFFICE OF THE DEPUTY PRIME MINISTER AND MINISTRY OF LOCAL GOVERNMENT

Country: Kenya Name of Project: Kenya Municipal Program (KMP) Credit No: IDA 4714-KE
REQUEST FOR EXPRESSIONS OF INTEREST FOR CONSULTANCY SERVICES FOR PREPARATION OF TECHNICAL SPECIFICATIONS AND TENDER DOCUMENTS FOR OFFICE REFURBISHMENT AND SUPPLY OF OFFICE FURNITURE AND EQUIPMENT TO EMBU AND MALINDI MUNICIPAL COUNCILS AND KMP OFFICES IN CIANDA HOUSE
CONTRACT No. MOLG/KMP/COMP3/EQUIP/CONSULT -02.
Ecowas army chiefs meet over Mali crisis

Military bosses will discuss posting of strong force for coup-ridden nation
BY TAMBA JEAN-MATTHEW
NATION Correspondent DAKAR, Monday
The Government of Kenya has received a credit from International Development Association (IDA), and intends to apply part of the proceeds for Consultancy Services for procurement of Consultancy Services to assist the Ministry of Local Government and the Kenya Municipal Programme in the preparation of technical specifications and tender documents for office refurbishment and supply of office furniture and equipment. The main objective of the assignment is to prepare technical specifications and tender documents for the following:1. Office refurbishment in lots: Lot 1: Refurbishment of Kenya Municipal Programme Offices at Cianda House in Nairobi, Lot 2: Refurbishment of Embu Municipal Councils offices Lot 3: Refurbishment of Malindi Municipal Councils offices, Construction of a parking and boundary wall 2. Supply of Office Furniture and Equipment for Kenya Municipal Programme Offices in Nairobi, Embu and Malindi Municipal Councils offices The tasks to be carried out by the Consultant will include: Phase 1 a) Analyse and develop specification for the required equipments and furniture; b) Review proposed type of office improvement including parking areas and boundary walls; c) Consult with the relevant stakeholders, including the beneficiaries; d) For the proposed equipment and furniture prepare Technical Specifications. e) Liaise with relevant Government Ministry where necessary for the approval of the adopted Technical Specifications; f) Prepare draft Bidding Document(s) depending on the combination of Lots for similar set of equipments based on World Bank Guidelines and Documentation; g) Prepare a confidential cost estimate of the goods to be procured. h) Branding of KMP offices at Cianda House. The assignment under Phase 1 is expected to take 2(two) calendar months Lump Sum Contract Phase 2 Coordination of works between the different Contractor(s) and/or Supplier(s), Supervision of refurbishment of offices, Supervision of construction of the boundary wall and parking Plan for quality control and quality assurance (ensuring that the quality of the works is satisfactory), Plan for project cost control, Plan for project progress control (ensuring that the work will be completed within the budget and in due time), Completion and final acceptance certificates The assignment under Phase 2 is expected to take 4(four) calendar months under Time-Based Contract. The Kenya Municipal Programme now invites eligible consultants to indicate their interest in providing the services. Interested consultants must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills etc). Consultants may associate to enhance their qualifications. A consultant will be selected in accordance with the procedures set out in the World Banks Guidelines: Selection and Employment of Consultants by World Bank Borrower, May 2004 (Revised October, 2006 and May 2010). Interested consultants may obtain further information at the address below from 0800 to 1700 Hours from Monday to Friday excluding lunch hour (1300 to 1400Hrs) and public holidays. Expression of interest must be delivered by hand submitted to the address below by 7th June 2012 at 12.00 noon Kenyan time. The packages should be clearly marked REQUEST FOR EXPRESSIONS OF INTEREST FOR CONSULTANCY SERVICES FOR PREPARATION OF TECHNICAL SPECIFICATIONS AND TENDER DOCUMENTS FOR OFFICE REFURBISHMENT AND SUPPLY OF OFFICE FURNITURE AND EQUIPMENT TO EMBU AND MALINDI MUNICIPAL COUNCILS AND KMP OFFICES IN CIANDA HOUSE CONTRACT No. MOLG/KMP/COMP3/EQUIP/CONSULT -02. Applications to be addressed to: The Permanent Secretary Office of the Deputy Prime Minister & Ministry of Local Government Jogoo House A P.O. Box 30004 - 00100 Nairobi, KENYA The applications to be submitted in the manner stated above shall be deposited in the Tender Box located at Jogoo House A 1st Floor, Taifa Road so as to be received Not later than 7th June, 2012 at 12.00 noon (East African Time) The opening of the submitted applications will be done immediately on 7th June, 2012 starting at 12.05 (East African Time) at the Conference Room, at Jogoo House A, 1st Floor and applicants or appointed representatives are allowed to attend. Head, Supply Chain Management For: Permanent Secretary
est Africa army chiefs are meeting in Abuja today to plan the nal deployment of a 3,000-strong intervention force in Mali and Guinea Bissau. The day-long meeting would also examine plans to address the increased security challenges in the region posed mainly by threats from terrorist groups in Mali and Nigeria. The meeting coincides with an exhibition of military equipment by the Nigeria Armed Forces in Kaduna on Tuesday 15 May 2012. A statement said the meeting is in continuation of preparations mandated by regional heads of state and government at their extraordinary summit on the two countries that was held in Dakar on 3 May 2012, a statement said. Ecowas ocials said Nigeria and Burkina Faso will deploy a total of 1,500 troops in Guinea Bissau where the military junta is visibly contemplating on rescinding on an earlier decision to allow the deployment. Bissau junta leader Gen Antonio Injai has been casting doubts over the deployment hinting that it would interfere in the structure and training of the local army with the view to forestall recurrent mutiny leading to political instability.
The junta ousted former premier Carlos Gomes Jr and interim president Raimundo Pereira over claims that the two men had concluded an agreement with Angola to bring in experts to train and restructure the Bissau army. Following the military coup on 12 April 2012, the junta refused quit orders from the international community and insisted that it would not consider foreign troops as an invasion force if they stepped out of the duty to help protect state institutions and pave the way for the holding of elections. For his part, Malis junta leader Captain Amadou Sanogo had rejected posting of any foreign troops in the country. PRESIDENCY
Bloc backs transition
Ecowas wants Malis interim leader Diancounda Traore (pictured) to continue leading the interim government for a period of 12 months and junta leader captain Sanogo says the negotiations have not failed, adding we must be the architects of a solution to the crisis.
Alarm as two headless bodies found in Somalia

BY ABDULKADIR KHALIF
NATION Correspondent The beheaded body of a woman was found at Hosingo sub-district in Southern Somalia yesterday, according to reports from Juba region. Lt-Col Mohamed Sheikh Ali, the spokesman of Somalias Transitional Federal Government in Jubaland, stated that the beheaded body of a businesswoman was spotted on the outskirts of Hosingo settlement, about 140 km west of Kismayu, the Lower Juba regional capital. The ocer added that militants loyal to Al-Shabaab, the radical Islamist group vehemently opposing the TFG, had earlier abducted the woman. She (the beheaded woman) was mother of ve, said Lt Col Ali. He accused Al-Shabaab militants of seizing and killing the woman for selling stus to TFG personnel in the area. Similar reports from Bay region confirmed that resident at Qansahdhere district, about 250 km southwest of Mogadishu; saw the body of a beheaded young man at the outskirts of the town. Mr Ali Aden, a Member of Somalias Transitional Federal Parliament but staying in Baidoa town, 240 km southwest of Mogadishu, told the media that the beheaded youth used to be an Al-Shabaab loyalist but surrendered to the TFG forces in Qansahdhere district.
Former loyalist
21
Institute of Internal Auditors-Kenya
IMPLEMENTING THE INTERNAL AUDITING STANDARDS WORKSHOP- JUNE 7-8, 2012 SILVER SPRINGS HOTEL, NAIROBI The Institute of Internal Auditors, Kenya will be holding a Workshop on Implementing the Internal Auditing Standards on 7th & 8th June, 2012 at The Silver Springs Hotel, Nairobi. This exciting event will provide timely practical guidance on implementing the revised International Internal Auditing Standards. The workshop will cover; Application of the Internal Auditing Standards (IPPF) to improve your IA function How to use the IPPF to improve your knowledge and skills as an internal auditor Findings from quality assessment reviews on experiences in implementing the Internal Auditing Standards Revamped practice advisories and position papers that expound on the standards How to develop a clear road map towards adopting the internal auditing standards and use of the phrase audited according to the Internal Audit Standards The workshop is ideal for internal auditors of all levels and for all internal audit departments aspiring to implement the internal auditing standards, and strongly recommended for those undertaking The Certified Internal Auditor (CIA) certification. Workshop fee (excluding VAT) Kshs.55, 000 + 16% VAT for IIA members and Kshs.60,000 + 16% VAT for non-members. This cost covers lunch, tea/coffee and workshop material. Participants to get a free copy of The Updated 3rd Edition of Urton Anderson- Implementing the International Professional Practices Framework Book. Registration for the conference will close on 30th May 2012 For reservations, contact us on the details below;
APA Insurance Arcade Building, 2nd Floor, Hurlingham P. O. Box 8605-00100, Nairobi, Kenya Tel: +254-20-2731246/2729773; Cell 0721 615863 E-mail: info@iiakenya.co.ke or iia@africaonline.co.ke Website: www.iiakenya.co.ke (IIA Kenya), www.theiia.org (IIA Global)
22 |
KAMUTHI HOUSING CO-OPERATIVE SOCIETY LTD NOTICE TO ALL MEMBERS

We will be holding our Special General Meeting (SGM) on Saturday 2nd June 2012 at our Head office site next to the Maziwa Police Post starting at 10.00a.m. The agenda for the day will be: 1. The Chairmans Report updating the Progress Report of Thika Phase I and Ph.11 Projects including communication of member balloting dates and procedure for Ph.11 land. 2. Approval of enhanced borrowing powers to roll out infrastructure improvements and meet the balance of the Purchase price. 3. Provincial Co-operative Officers (PCO) Speech 4. Official opening of Kamuthi House - The New Head Office Block 5. Any other business
Please keep time!!!

Eliud P. Njoroge Secretary
CONTACTS: KAMUTHI HOUSING CO-OP SOCIETY LTD NAIROBI - HEAD OFFICE TEL: 020-8000483 CELL: 0724 729 883 0707333066 Email:info@kamuthi.co.ke
Bernard Kungu Maina Chairman

THIKA OFFICE KAHUTA HOUSE- GARISSA RD TEL: 020-2603853 Cell: 0707 926904 thika@kamuthi.co.ke
Africa News 23
CONTROVERSY | Mugabe is a vocal critic of homosexuality
Harare orders eviction of gays

Minister says supporters of same-sex marriages should be banished and dispossessed of their land
BY KITSEPILE NYATHI
NATION Correspondent HARARE, Monday constitution. Its a very controversial subject in my part of the world, he said in an interview last October. My attitude is that I hope the constitution will come out with freedom of sexual orientation, for as long as it does not interfere with anybody. To me its a human right. Zanu-PF hardliners now want the constitution-making abandoned, claiming the parliamentary body leading the process ignored peoples views and included gay rights in the draft. The views you raised during the constitution outreach programme are in Harare and they are written down, Mr Chombo said. The problem is that our colleagues in government want to change your views and include foreign values. President Mugabe is vocal critic of homosexuality, calling those who practice it worse than dogs and pigs. He also accuses Western leaders of trying to force Africans to embrace homosexuality. But analysts say Zanu-PF is using the alleged clause to sabotage the constitution making process so that elections could be held without new reforms. Meanwhile, a photojournalist from
Over 7,500 ee from homes in eastern Congo

KINSHASA, Monday
More than 7,500 people have ed their homes in Masisi, NorthKivu province in the east of the Democratic Republic of Congo, the North-Kivu civil society said yesterday. The displacement was as a result of the resumption of an oensive by the DR Congo Armed Forces against the indisciplined soldiers who are loyal to General Bosco Ntaganda, following the end of an ultimatum that they had been given by the army.
Zimbabwean minister has ordered traditional leaders to seize land belonging to homosexuals and expel them from their communities. Local Government minister Ignatius Chombo from President Robert Mugabes Zanu-PF party said homosexuality was a foreign value. The chiefs are there to protect and promote our cultural values and those who support same-sex marriages must be banished from the communities and dispossessed of their land, he told a traditional ceremony at the weekend. What kind of madness is this that when we have beautiful women in our country some people want to marry other men? He chided Prime Minister Morgan Tsvangirai for allegedly supporting gay rights in Zimbabwes proposed new constitution. Mr Tsvangirai, who formed an inclusive government with President Mugabe in 2009, last year told the BBC he would not oppose provisions on gay rights if the majority of Zimbabweans wanted them in the
DEFIANT STANCE
Mugabe has told the West o

Zimbabwes President Robert Mugabehas told British Prime Minister David Cameron to hell with you over his calls to respect gay rights and accused non-governmental organisations of trying to destabilise the country, at a birthday rally in the eastern border town of Mutare. NGOs come with these stupid ideas, some to destabilise us. Quite often they support one party. We say to them get away from our country. Leave us to solve our political problems.
Zimbabwe President Robert Mugabe inspects a guard of honour at a rally to mark the countrys 32nd independence anniversary on April 18, in Harare.
New Zealand who was arrested in Zimbabwe has been released and spoken of the hell of spending 25 days in the countrys jails, Britains Sunday Times newspaper reported. Robin Hammond, 36, who works for the newspaper, was arrested on April 16 near the South African border as he was reporting without accreditation on refugees eeing across the border from Zimbabwe.
FILE | AFP
The civil society members said that thousands of the displaced persons who include women and children, have been arriving en masse in refugee camps in Rwanda and Uganda. The displaced people are living in deplorable conditions in these camps, without food, water or even beddings. In these conditions, theres fear of an outbreak of diseases such as cholera, typhoid and malaria, said Jean-Pierre Masudi, a member of the NorthKivu civil society. He said that a majority of the displaced persons said that they had walked for long distances and had been victimised and raped by the soldiers and some other armed men. (Xinhua)
Have been arriving
MOTOR VEHICLES (SALVAGES) FOR SALE

TENDER NO. REG. NO.
1376 1452 1477 1478 1480 1482 1486 1487 1488 1489 1490 1491 1492 1496 1498 1501 1502 1504 1506 1508 1509 1510 1511 1512 1516 1517 KAT 488W KBE 084Y KAT 110H KBM 804P KBL 875W KBM 809P KAW 074J KBK 772N KBJ 045R KAT 266Z KAN 364C KBC 641C KAV 641C KAT 231A KBK 645T KBK 631F KTWA 003A KBR 136K KBF 216R KBJ 453Y KAS 113S KAV 019R KBB 789R KBA 741N KAM 483D KAV 316Z MITSUBISHI VOLVO CHEVROLET LIVAN MITSUBISHI LIVAN SUBARU TOYOTA MITSUBISHI TOYOTA NISSAN MERCEDES ACTROS TOYOTA TOYOTA TOYOTA TOYOTA PIAGGIO RENAULT SUBARU TOYOTA TOYOTA TOYOTA MERCEDES BENZ MITSUBISHI TOYOTA CHEVROLET
MAKE
MODEL
LANCER PRIME MOVER OPTRA SEDAN LANCER SEDAN IMPREZA NZE FH 215 COROLLA PATROL PRIME MOVER TOYOTA CORONA PROBOX NZE
BODY
SALOON
FLUENCE IMPREZA VITZ SPRINTER ECHO ACTROS COROLLA OPTRA
SALOON SALOON SALOON SALOON ST. WAGON SALOON LORRY SALOON ST. WAGON LORRY ST. WAGON SALOON ST. WAGON SALOON TUK TUK SALOON ST. WAGON ST. WAGON SALOON SALOON PRIMEMOVER CANTER SALOON SALOON
1.
2. 3. 4. 5.
Interested bidders are requested to pay a refundable deposit of Kshs.30,000/= and to obtain a bidding number at our offices situated at Royal Ngao House, Hospital Road, P.O. Box 40001 00100, Nairobi Tel : 4904000/2712620 / 2712935 in form of a BANKERS CHEQUE in favour of REAL INSURANCE COMPANY LIMITED. To reach us not later than 21ST MAY 2012. Sale is subject to reasonable reserve price. Vehicles sold, as is where is. Only successful bidders will be notified. Terms and conditions apply
24 | International News
VIOLENCE | Regime forces launched an oensive on the city at the weekend
BRIEFLY
GENEVA
23 troops killed in Syria clashes

Three troop carriers destroyed in clashes, says rights group
DAMASCUS, Monday
ierce clashes between regime forces and armed rebels in central Syria today killed 23 Syrian soldiers and wounded dozens, a watchdog said, as the EU slapped fresh sanctions on Damascus. Also today, Russia said it was absolutely clear that Al-Qaeda and its associates were behind twin bomb attacks in the Syrian capital last week that killed 55 people. The Syrian Observatory for Human Rights said three troop carriers were destroyed in clashes that began at dawn on the outskirts of Rastan, a rebelheld city located in restive Homs province. A lieutenant who had defected was also killed in the clashes. Regime forces launched an offensive on the city at the weekend but have met with sharp resistance from rebels seeking the ouster of the regime of President Bashar al-Assad. The Observatory said dozens had been wounded in shelling of the city by Syrian troops. And in Quraya in the eastern province of Deir Ezzor, a 15-yearold boy was killed by machinegun
Swiss army to buy bicycles with gears

Forget the Swiss army knife, Swiss soldiers will soon be issued with the latest in two-wheel technology brand new bicycles to keep the men t on mountain roads. But this time, the bikes will come with eight gears instead of the single one that equips current models. Some 2,800 of the Swiss-made bikes, at a cost of 2,500 Swiss francs each, will soon be ordered to replace the 20-year-old current model, the NZZ Am Sonntag newspaper has reported. The new bike, with an aluminium frame and disk brakes, weighs 15 kilos, 10 kilos less than the older models. (AFP)
ESCALATION
Accusations by both sides

In some of the worst violence seen since the conict erupted, twin suicide bombings in Damascus on Thursday killed 55 people and wounded 372. The Syrian opposition insisted Assads government carried out the devastating attacks, in a bid to impress upon the international community that the regime was battling terrorists. But Russias foreign ministry pointed the nger of blame on Monday squarely at Islamist extremists
JOSEPH EID | AFP
ROME
A Lebanese Sunni Muslim gunman takes aim on Syria Street during ghting in the Bab al-Tebbaneh neighbourhood of the northern Lebanese city of Tripoli during the second day of clashes between factions supporting and opposed to the revolt in Syria yesterday.
fire as regime forces raided the town, the Britain-based watchdog said, bringing the total number of people killed on Monday to 25. The deadly unrest comes despite a month-old ceasere brokered by UN-Arab League envoy Ko Annan as part of a six-point plan aimed at ending violence that has swept Syria since March last year when a popular revolt erupted against Assads regime. (AFP)
Italian PM warns of growing social unrest

Italian Prime Minister Mario Monti has warned of tears in the nations social fabric, urging people not to give up in the face of record unemployment and sweeping austerity cuts. Montis comments to a youth audience in central Tuscany came against a backdrop of rising social tensions in Italy, which has the eurozones highest national debt burden. Italy is gripped by strong social tensions, he said. (AFP)
NATIONAL IRRIGATION BOARD (NIB)

ISO 9001:2008 Certified
OPEN NATIONAL TENDER

REQUEST FOR PROPOSALS
TENDER NAME: CONSULTANCY SERVICES FOR PREPARATION OF IRRIGATION DEVELOPMENT MASTER PLAN FOR DAUA RIVER BASIN, MANDERA COUNTY TENDER No.: NIB/T/116/2011-12 The National Irrigation Board (hereinafter referred to as Board) is a Government parastatal under the Ministry of Water and Irrigation established in 1966 by an Act of Parliament, Chapter 347 of the Laws of Kenya, and whose mandate is the development, promotion and management of all national irrigation schemes in the country. In line with this mandate, the Board is currently managing seven national irrigation schemes and four research stations in various regions of the country while undertaking the implementation of new irrigation and drainage infrastructural projects in other parts of the country. The Board now invites sealed proposals from eligible and qualified firms to provide the Consultancy Services for Preparation of Irrigation Development Master Plan for Daua River Basin, Mandera County, Republic of Kenya. The Request for Proposal (RFP) is open exclusively to engineering consulting firms registered/incorporated in Kenya with majority ownership by citizens of Kenya. Citizen firms may only associate or form joint venture with other non-citizen firms registered/incorporated in Kenya to enhance their capacity to meet the requirements for the assignment. The consulting firm will be selected under Quality and Cost Based Selection (QCBS) method and procedures described in the RFP, in accordance with the provisions of Public Procurement and Disposal Act 2005 and Public Procurement and Disposal Regulations 2006, which can be found at the following website: http://www.ppoa.go.ke. The Terms of Reference (ToR) and bidding requirements are detailed in the Request for Proposal (RFP) document. Detailed set of RFP documents may be obtained by interested firms from Cashiers Office, Main Building (Unyunyizi House), Lenana Road, Nairobi, on submission of a written application and upon payment of non-refundable fee of Ksh. 5,000.00 per set payable in cash or bankers cheque from Wednesday 16th May 2012. The RFP document will be collected by firms. There will be a pre-proposal briefing on Thursday 24th May 2012 at 10.00 a.m. local time at District Irrigation Officers (DIOs) Office, Mandera District, Mandera Town, Kenya and thereafter a site visit of the project area. The participating firms are encouraged to attend the meetings. The firms will be responsible for all arrangements for their attendance and all associated costs. Interested firms may obtain further clarification/information from and inspect the RFP documents at the Procurement & Supplies Officers office, NIB, Tel: +254-20- 2711380/468 during working hours (8.30 a.m 5.00 p.m, Mon-Fri.). All clearly marked proposals must be delivered to the address below at or before 1200 hours local time on Tuesday 12th June 2012 at 12.00 noon local time. Electronic bidding shall not be permitted. Late proposals shall be rejected. Proposals will be opened physically in the presence of the firms representatives who choose to attend in person in the Nile Basin Board Room at the address below at 1200 hours local time on Tuesday 12th June 2012 at 12.00 noon local time. The address referred to above is: Physical Address: General Manager National Irrigation Board (NIB) Unyunyizi House, First Floor, Room 309 Lenana Road, Hurlingham Nairobi, Kenya Tel: +254-20-2711380/468 Fax: +254-20-2722821/2711347 E-mail: enquiries@nib.or.ke, purchasing@nib.or.ke GENERAL MANAGER NATIONAL IRRIGATION BOARD.
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26 |
International News 27
CRIME | Drug-war leads to massacre of dozens
Workers for the Forensic Medical Service work at the crime scene where decapitated and dismembered bodies were found near a highway of Cadereyta, in the state of Nuevo Leon, yesterday. At least 49 decapitated bodies were found on Sunday morning on a highway in the northern Mexican state, the local authorities said.
PHOTO | XINHUA
Mexican police nd 49 headless bodies

Bodies stacked up at the roadside; 43 of them of men and six being women
MONTERREY, Mexico, Monday
exican police today searched for perpetrators of a drug-war massacre in which 49 people were killed, decapitated, dismembered and left in plastic bags on the side of a highway. The mutilated corpses, whose hands had been cut off to prevent fingerprint identication, were discovered close to the northern city of Monterrey, 180 kilometers from the US border. The bodies stacked up at the roadside were of 43 men and six women, said Jorge Domene, a public safety spokesman for the state of Nuevo Leon. Adrian de la Garza, a prosecutor in Nuevo Leon state, said some of the bodies in Sundays shocking find were naked and, although their hands had been cut o,
forensic experts were collecting DNA samples. A note was found at the scene in which the Zetas a gang set up by ex-commandos who deserted in the 1990s claimed responsibility. Initial investigations indicated that the victims were killed up to 48 hours earlier in a dierent location, and were likely transported by truck to where they were found. The grisly nd was part of what has been happening in the country in general, said Mr Domene, pointing to other mass killings. It is a continuation of what has already happened recently
Grisly nd was part of what has been happening in the country in general
Jorge Domene, a public safety spokesman
in Nuevo Laredo, a few weeks ago in Jalisco and a few months ago in Veracruz. De la Garza argued the victims could be residents of a dierent state or migrants from other countries transiting through Mexico on their way to the United States. El Salvadors foreign ministry said it was following with attention events in northern Mexico. Thirteen Salvadoran nationals were among the 72 people killed by the Zetas gang in Tamaulipas in August 2010. We condemn in the most energetic form the massacre of 49 people in Nuevo Leon... which becomes part of a series of violent acts perpetrated in this region, said a statement by the Salvadoran foreign ministry. The gruesome discovery came just days after police found the dismembered, decapitated bodies of 18 people in two abandoned vehicles in western Mexico, in what appeared to be a revenge killing involving powerful drug gangs. (AFP)
BRIEFLY
ADEN ATHENS
Yemen battles rage, 37 militants reported killed

Battles raged on Monday in Yemens southern city of Zinjibar as the army intensied its drive to crush Al-Qaeda militants, with tribal sources reporting 37 jihadists killed in two days of ghting. A government ocial said meanwhile that suspected Al-Qaeda ghters blew up a gas pipeline in southeast Yemen late on Sunday, in retaliation for the latest attacks on their positions. We can hear from Aden the sound of shelling in Zinjibar, said a resident in Yemens main southern city, which is about a 30 minute drive from Abyans restive provincial capital. (AFP)
Greek unity government talks doomed, party warns

Greek talks to form an emergency unity government are doomed by the refusal of the far-left Syriza party to join a coalition, the leader of a smaller party warned on Monday. President Carolos Papoulias was Monday due to have talks aimed at breaking a political deadlock since May 6 polls in which voters rejected the major parties austerity measures imposed under EU and IMF loan agreements. (AFP)
28 | International News
Six survive as Nepalese plane crash kills 15

KATHMANDU, Monday
A small plane crashed near a treacherous high-altitude airport in northern Nepal today, killing 15 people while six others miraculously survived, police said. The aircraft belonging to local carrier Agni Air ploughed into the ground just outside Jomsom airport, a gateway to the Annapurna mountain range, shortly after the pilot reported a fault. Fifteen people have been killed. Thirteen of them were Indian tourists and the other two were Nepali pilots, police spokesman Binod Singh told AFP. He said there were six survivors, among them a Nepali air hostess and an Indian man who is being treated for head injuries. The Danish foreign ministry in Copenhagen said two Danes had also been rescued and were being treated in the city of Pokhara, 60 kilometres from Jomsom. Basanta Dawadi, of the Pokhara tourism council, said he had spoken to the pair, a man and woman in their early 30s who were both trekkers. They told me the plane was about to land and suddenly it ascended and its left wing hit something. The plane rolled and then plunged into the ground. The emergency door opened and they crawled out of the aircraft. They told me they lost consciousness and then they were rescued.The man had foot injuries while the woman had a cut on her throat, Dawadi said. The Indian Embassy in Kathmandu said two Indian children aged nine and six had been pulled out alive from the wreckage. (AFP)
POLITICS | Result heralds grim times
Big loss for Merkel party in state poll

Chancellor may be forced to soften her economic policy ahead of elections
BERLIN, Monday
hancellor Angela Merkel was counting the cost today of an historic drubbing for her conservative party in Germanys most populous state, a major setback 16 months ahead of national elections. Voters in North RhineWestphalia (NRW) with its 18 million inhabitants, handed Ms Merkels conservative Christian Democrats (CDU) its worst ever result in the state, just over 26 per cent according to preliminary results. With less than a year and a half to go until she seeks a third term in oce, Mr Merkel must now weigh up how to ensure a national victory for her CDU, as well as see through her eurozone crisis-ghting policy. Catastrophe for the CDU, mass circulation Bild said, adding the result would make things dicult for Chancellor Angela Merkel while Die Welt , commented that the ground is shaking beneath Angela Merkel. The snap election saw the main opposition Social Democrats (SPD) win 39 percent in NRW, home to the Ruhr industrial heartland. They now look set to again form a coalition government with the ecologist Greens. The victory may bolster the opposition in its bid to force Ms Merkel to soften her austerity policy and is a further blow after voters punished governments in fellow eurozone nations France and Greece that had toed the line for German-imposed budgetary belt-tightening.
It also comes two days ahead of a highly anticipated meeting in Berlin between Ms Merkel and Frances Socialist president-elect Francois Hollande who beat her centre-right ally on Europe, Nicolas Sarkozy. Meanwhjil;e, late today, Ms Merkel said her partys heavy losses in the vote was a bitter, painful defeat but stressed it had no bearing on her European policy. The work in Europe is not aected, Ms Merkel told a news conference. She reiterated there was no conict between solid budgetary policy and growth after some attributed the crushing poll result to Merkels tough stance on austerity. It is a setback however for Merkel about 16 months before she will seek a third term at the helm of Europes top economy. (AFP) TROUBLE
Budget woes aected vote
Election was triggered after the minority state government unexpectedly fell when the regional parliament failed to pass a draft budget after just 22 months in power. Notching up a success in the vote was Merkels pro-business coalition partners , the Free Democratic Party (FDP), which conrmed a reversal of its fortunes after a string of humiliating defeats.
Egypt police raid Iran TV oce in Cairo

CAIRO, Monday
Egyptian police raided the Cairo office of Iranian television channel, Al-Alam, confiscating its equipment after it was found to be operating without license, a security source said today. The raid was carried out on Sunday and the head of AlAlams Cairo office, Ahmed Siou, was charged with working without an ocial permit, the source said. On the Arabic-language channels website, Siou conrmed that several members of the police raided the oce of Al-Alam in Cairo. He slammed the raid as an attack on freedoms, a means to silence the media, adding that the channel had repeatedly requested an ocial work permit. It was the second time the station had been raided. In July 2008, the channel also had its equipment conscated after it failed to get permission to broadcast from Egypt. (AFP)
29
NOTICE AND AGENDA OF THE 34TH ANNUAL GENERAL MEETING OF THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA
DATE TIME VENUE : : : Wednesday, 6th June 2012 11:30am CPA Centre, Thika Road, Nairobi
NOTICE IS HEREBY given that the 34th Annual General Meeting of the Institute of Certified Public Accountants of Kenya will be held on Wednesday, 6th June 2012 from 11.30am at the CPA Centre, Thika Road, Nairobi to transact the following business: Ordinary Business 1. To Note Apologies 2. To confirm minutes of the 33rd Annual General Meeting and to consider matters arising therefrom. 3. To receive, consider and if found appropriate, adopt the Annual Report of the Council and the Accounts of the Institute for the year ended 31st December 2011 together with the Auditors Report thereon. 4. To appoint the Independent Auditor of the Accounts of the Institute for the year ending 31st December 2012 and authorize the Council to fix the remuneration of the auditor. 5. To witness the presentation of Commendation and Fellowship Certificates, if any. 6. To confirm the election of the Chairman in accordance with the Institutes election regulations; (a) Mr. Patrick Mtange, Reg. No 2329 was on 23rd March 2012 nominated by Council to contest the post of Chairman. In view of Mr. Mtanges nomination as the sole candidate, the returning officer on the same date, declared that in accordance with the Institute By-Laws no election will be held in 2012 for the post of Chairman. 7. To confirm the election of Council Members in accordance with the Institutes election regulations. (a.) The following retire as Council Members in accordance with the Accountants Act No. 15, 2008. Reg. No Name Joan Riitho 1967 2248 Felicitas Irungu Being eligible, the two members have offered themselves for re-election. (b) The following additional eight (8) candidates were on 23rd March 2012, nominated by the Council in accordance with the Institutes election regulations, to contest for the two (2) vacant position of Council Member. Name Reg. No George Obare Nyaega 6669 4801 Rashid Mohamed Khamis Francis Ndirangu Munyua Kamau 6762 3054 George Magomba Onyango Fernandes Odinga Barasa 2918 Winnie Iminza Nyamute 3284 Patrick Irungu Kimani 3296 Nicholas Kibiwott Leting 3913
Caroline J Kigen Chief Executive and Secretary NOTE: The First Schedule to the Accountants Act, No 15, 2008, Section 11, (3 & 4) provides that a member entitled to attend and vote at the Annual General Meeting and who is unable to attend is entitled to appoint a proxy to attend and vote on his or her behalf. To be valid, a form of proxy must be duly completed by the member and must be deposited with the Secretary so as to be received not less than forty eight hours before the Annual General Meeting i.e. not later than 11.30am on Monday, 4th June 2012.
30 | Business News
BUSINESS
PETROLEUM | Motorists to feel the pinch as fuel cost is increased by Sh2.63 Analysts now warn of a comeback of ination but regulator says chances are prices will be reduced next month
BY IMMACULATE KARAMBU
ikarambu@ke.nationmedia.com There will be consolation for diesel users as pump prices were reviewed downwards by a marginal 36 cents to retail at Sh108.44 per litre in Nairobi. The Energy Regulatory Commission (ERC) reviews pump prices every month, following adoption of a fuel price capping formula in December 2010. Following yesterdays increase in fuel prices, analysts have warned of a possible comeback of inationary pressure and a delay of a downward revision of CBKs indicative rate from the current 18 per cent. Last months review was signicant and taking the new prices into consideration, there is a possibility of a return of imported ination, said economic analyst Robert Shaw. In its meeting held early in the month, the Central Banks Monetary Policy Committee
FACEBOOK IPO LAUNCHES THIS FRIDAY Demand for the stock high and many small investors could miss out. P.33
ERC raises pump prices again

M
otorists are set for harder times after the energy regulator increased petrol prices for the second month running. Pump prices for super petrol will go up by Sh2.63 per litre to retail at Sh121.13 in Nairobi and Sh124.75 the highest in the country in Isebania, Nyanza. The new prices follow last months Sh6.81 per litre increase, which is the highest single increment since the government started regulating retail prices in 2010. Kerosine prices will also go up by 72 cents to retail at Sh87 per litre, piling pressure on low income earners who use it to light their homes. Kerosine prices rose by Sh2.14 per litre last month.
CBK
There are potential threats and risks including underlying pressure from food and fuel prices
decided to retain the CBK rate at 18 per cent citing possible increase in fuel prices that risk rekindling inationary pressure in the country. There are potential threats and risks including underlying pressure from food and fuel prices The committee observed that there is a need to maintain the current monetary policy stance to ensure that ination continues to decline. However, the commission has promised reduced prices next month. In the last few weeks, there has been a downward trend in the price of crude and rened petroleum products in the international market, in addition, the local currency has continued to be relatively stable against the US dollar, a statement signed by ERC director general, Eng Kabaru Mwirichia read in part.
Kenya third in foreign investment rise, report

BY NATION REPORTER
Kenya was third after South Africa and Morocco in the list of countries in Africa that attracted the most foreign Direct Investment projects in 2011. According to a report released by fDi Intelligence, a subsidiary of the Financial Times Limited, Kenya attracted 55 new projects last year in the category of foreign direct investments, raising the level of such projects by 77 per cent compared to 2010. South Africa led the continent with 154 new projects followed by Morocco with 70 new projects, during the period under review. South Africa was the best performing country in the region in 2011, with a 57 per cent increase in project numbers, 87 per cent growth in capital investment... say the report. The statistics mirror others that have placed the country among the most sought after investment destinations in the world, an indication of growing condence among foreign investors in country. Another report released yesterday by Stanbic Investment Management Services showed that agri-business and manufacturing remain the main attraction for foreign investors looking for investment opportunities. The Stanbic report shows that between 2007 and 2008, foreign direct investment in agri-business in Kenya rose by 42 per cent while those into the manufacturing sector rose by 87 per cent, even as global investment ows decreased as a result of the global economic downturn.
WORKSHOP | Port management stakeholders from Africa meet
Delegates from various African countries follow a presentation by the secretary general of the Port Management Assocaition of Eastern and Southern Africa Mr Jirome Ntibarekerwa, during the opening of the African Transit Corridor/Port Authorities Alliance workshop at the Mombasa Continental Resort. See Back Page
South Africa was the best performing country in the region in 2011
fDi Intelligence report
Unpredictable raises in minimum wages worrying employers

BY NATION REPORTER
The unpredictable rise in minimum wages is making it dicult for labour intensive companies to budget for their employees pay. According to the senior operations consultant of KK Security, Mr Steve Foster, companies which rely on employees captured as minimum earners, nd it dicult to know the amount of money to set aside to cater for the new costs given and remain in the dark till May 1, ve months into the year. We know the importance of paying our employees well, especially those tasked with security. However, it is almost impossible to know how to plan for the new rates if there are no denite benchmarks to allow us to factor them in our budget, Mr Foster said in an interview with the Nation. It has now become a tradition for the ministry of Labour to announce the new minimum wage during Labour Day celebrations and this according to the rm, is way after the budgeting period is done. During this years celebrations, the government increased the minimum wage by 13.1 per cent, making the lowest paid worker in major towns earn Sh8,579 monthly. In 2010 the government issued a 10 per cent increase in the wage. Labour intensive industries like ours are at a loss, given that the government is not predictable. This year it awards nothing, the following year it awards 13 per cent and so on. The situation is further complicated now that some companies nancial year begins in January, he said. His views are shared by the Federation of Kenyan Employers (FKE), the umbrella body for employers, who hold that employees would be better served through collective bargaining agreements entered into with their employers, and the statutory minimum wage should only be a guide.
Business News 31
BUDGET | Tracking spending
Stop wastage of resources, State urged

Government asked to track spending and direct monies to priority areas
BY MWANIKI WAHOME
jwahome@ke.nationmedia.com
South Africa beating Kenya in battle for visitors

Kenya is losing to South Africa in the battle to woo visitors from new markets in East Asia. This, according to tourism ocials, is attributed to a constrained marketing budget and lack of diversied products. Both countries oer similar tourism products and have announced that India and China are crucial parts of their tourism growth strategies as traditional markets in the West plateau. However, while South Africa attracted a total 175,250 tourists from India and China last year, Kenya drew 96, 418. China and India have the potential of lling in a revenue gap that we are seeing with our traditional markets, said
1 5/3/12
Kenya Tourist Board (KTB) chairman, Mr Kitili Mbathi. South Africas tourism minister, Mr Marthinus van Schalkwyk, added that Asia is on the verge of becoming a core market for countries on the continent. In total arrivals, South Africa has also left Kenya far behind, netting eight million tourists in 2011 in comparison to Kenyas two million tourists.
12:50 PM
During the Tourism Indaba trade show in Durban South Africa, the countrys tourism minister revealed that last years annual tourism budget was about 668 million rand (Sh6.34 billion). Sh2.2 billion is targeted at African markets alone. Kenya has budgeted about Sh2.77 billion for the ministry of Tourism in the 2012/2013 nancial year.
he Government should track spending in ministries, cut on wastage and direct resources to priority areas, several speakers said yesterday during public hearings on the budget-making process at County Hall, Nairobi. There is need for a taskforce to track and identify wastage in government spending. If you go to most government offices you are going to nd ower arrangements. Are these really necessary, said the Nairobi Central Business District Association chairman, Mr Timothy Muriuki. The budget policy statement released recently showed that the next budget will reach Sh1.4 trillion, with 70 per cent of the funds going to the recurrent budget. Experts have variously estimated wastage through procurement process to be over 50 billion every year. Mr Muriuki added that it is common to nd dierent ministries pricing similar products differently, with most buying overpriced goods
and services. Other speakers supported creation of such body, adding wastage is also experienced after procurement is done, with some medical supplies to hospitals and food meant for relief not reaching the intended beneciaries. In recent years, the government has come under scrutiny over its spending with former nance minister Mr Uhuru Kenyatta recommending lower capacity vehicles to cut on fuel and maintenance. SUMMARY
Special fare Dubai-NationNewspaper 264x176mm.ai
2012/2013 budget
New budget: The budget is expected to reach Sh1.4 trillion. Recurrent: 70 per cent of this is expected to go to the recurrent budget. Wastage: has been estimated by experts to amount to Sh50 billion annually
CM
MY
CY
CMY
KCB an attraction to foreign investors

NATION CORRESPONDENT
KCB shares have been the main attraction for foreigners seeking to invest in local nancial institutions. The bank counter grossed Sh2.17 billion representing 34.1 per cent of the Sh6.36 billion ($76.6 million) total foreign inows in the Year to Date as of mid-last week, compared to its peers on the banking counters. According to Standard Investment Bank head of research, Francis Mwangi, many investors have been attracted its stocks from early in the year as they were selling for as low as Sh15 compared to those of some of its peers like Equity, which was selling for about Sh16.5. Foreign investors were looking to reap from anticipated price gains in line with the improving performance of the economy and securities exchange. At the start of the year, the banks stocks were cheaper compared some of its peers on the banking counter. Given its good performance in the last nancial year and in the rst quarter of this year, many investors were attracted to the companys stocks, Mr Mwangi said. Equity analysts also say KCB has more free oating shares (the number of shares that can freely trade and are not held by a strategic investor), compared to its peers, which gives it a strong case for foreign investor inows. A proportion of the banks free oating shares could be over 50 per cent, compared to its peers and other companies trading on the NSE, which have fewer free oating shares.
32 | Business
NAIROBI SECURITIES EXCHANGE
Last 12 Mths High Low Security Yesterday Prices Prev deal Shares traded
58.00 19.00 90.00 63.00 135.00 90.00 400.00 290.00 21.00 13.00 7.40 15.05 315.00 130.00
Agricultural
Eaagads Ord 1.25 Kakuzi Ord.5.00 Kapchorua Tea Co. Ord 5.00 Limuru Tea Co. Ord 20.00 Rea Vipingo Plantations Ord 5.00 Sasini Ltd Ord 1.00 Williamson Tea Kenya Ord 5.00
81.50 120.00 15.85 11.20 265.00
31.75 81.00 116.00 410.00 15.25 11.35 260.00
14,500 600 11,000 7,000 300
155.00 89.00 330.00 166.00 155.00 85.00 217.00 148.00 1.35 3.05 10.20 4.40 8.20 12.00
Manufacturing & Allied
UNIT TRUSTS
110.00 333.00 104.00 217.00 1.65 5.50 12.00 11.10 110.00 331.00 106.00 216.00 1.65 3.00 5.55 12.10 700 5,000 6,000 26,500 13,000 1,101,400 43,300 Money Market Funds African Alliance Kenya Shilling Fund Old Mutual Money Market Fund British-American Money Market Fund Stanbic Money Market Fund CBA Market Fund CIC Money Market Fund Amana Money Market Fund Suntra Money Market Fund Zimele Money Market Fund ICEA Money Market Fund Madison Asset Money Market Fund African Alliance Fixed Income Fund CIC Fixed Income Fund Stanbic Fixed Income Fund B1 Stanbic Fixed Income Fund A Standard Investment Income Fund Standard Investment Equity Growth Fund African Alliance Kenya Equity Fund ICEA Equity Fund British-American Equity Fund CBA Equity Fund CIC Equity Fund Dyer and Blair Equity Fund Old Mutual Equity Fund Stanbic Equity Fund Suntra Equity Fund Madison Asset Equity Fund African Alliance Managed Fund British-American Managed Retirement Fund Amana Growth Fund ICEA Growth Fund Amana Balanced Fund British-American Balanced Fund CIC Balanced Fund Old Mutual Balanced Fund/Toboa Suntra Balanced Fund Madison Asset Balanced Fund Zimele Balanced Fund CFC Simba Fund Old Mutual East Africa Fund British American Bond Plus Fund Dyer and Blair Bond Fund ICEA Bond Fund Old Mutual Bond Fund Daily Yield Eective Annual Rate Kenya Shilling 12.16% 12.86% Kenya Shilling 13.00% 13.81% Kenya Shilling 12.69% 13.53% Kenya Shilling 10.80% 11.35% 13.06% 13.95% Kenya Shilling Kenya Shilling 17.45% 18.91% Kenya Shilling 16.68% 17.75% Kenya Shilling 14.14% 15.18% Kenya Shilling 9.0% 9.31% Kenya Shilling 11.88% 12.62% Kenya Shilling 16.25% 17.52% Kenya Shilling 10.66 10.32 Kenya Shilling 10.30 10.57 Kenya Shilling 102.15 102.15 Kenya Shilling 101.49 101.49 Kenya Shilling 88.93 89.46 Kenya Shilling 65.40 66.15 Kenya Shilling 115.73 108.68 86.40 90.95 Kenya Shilling Kenya Shilling 133.11 141.72 Kenya Shilling 110.41 116.23 Kenya Shilling 11.02 11.60 Kenya Shilling 126.35 133.47 Kenya Shilling 256.42 270.62 Kenya Shilling 106.11 111.99 Kenya Shilling 94.27 99.23 Kenya Shilling 60.00 63.16 Kenya Shilling 16.82 15.84 Kenya Shilling 112.48 115.77 Kenya Shilling 84.85 89.32 Kenya Shilling 98.02 103.18 Kenya Shilling 83.88 87.38 Kenya Shilling 148.08 157.27 Kenya Shilling 10.80 11.31 Kenya Shilling 119.77 126.07 Kenya Shilling 86.79 91.36 Kenya Shilling 71.13 74.48 Kenya Shilling 4.07 4.19 109.29 115.05 Kenya Shilling Kenya Shilling 116.55 122.04 Kenya Shilling 154.54 157.69 Kenya Shilling 114.25 116.58 91.85 92.78 Kenya Shilling Kenya Shilling 93.53 95.44
A.Baumann & Co. Ord 5.00 B.O.C Kenya Ord 5.00 BAT Kenya Ltd Ord 10.00 Carbacid Investments Ord 5.00 East African Breweries Ord 2.00 Eveready EA Ord 1.00 Kenya Orchards Ord 5.00 Mumias Sugar Co. Ord 2.00 Unga Group Ord 5.00
68.00 15.00 19.00 8.00
Automobiles & Accessories

19.50 9.25 11.40 3.55 Car & General (K) Ord 5.00 CMC Holdings Ord 0.50 Marshalls (E.A.) Ord 5.00 Sameer Africa Ord 5.00
4.30
29.00 13.50 12.50 4.20
14.90 3.50 AccessKenya Group Ord 1.00 4.70 4.60 2.70 Safaricom Ltd Ord. 0.05 3.45 3.40 4.05 NSE All Share Index(NASI)-(1 Jan 2008=100 Up 0.52points to close at 78.98 points NSE 20 Share Index Up 29.31 points to close at 3628.64 Equity Turnover Close sh186,459,699 Previous sh289,584,636
Telecommunication & Technology
49,000 1,325,000
7,400
Banking
18.00 60.00 160.00 26.00 30.00 27.00 48.00 54.00 253.00 18.00 10.40 38.00 70.00 15.00 12.00 14.75 16.00 22.50 153.00 9.60 Barclays Bank Ord 0.50 CFC Stanbic Holdings Ord.5.00 Diamond Trust Bank Ord 4.00 Equity Bank Ord 0.50 Housing Finance Co Ord 5.00 KCB Ord 1.00 NBK Ord 5.00 NIC Bank Ord 5.00 StandardChartered Ord 5.00 Co-op Bank of Kenya Ord 1.00 13.00 43.75 99.50 20.50 15.60 24.25 19.95 32.25 169.00 14.00 12.95 42.00 100.00 20.25 15.25 23.75 19.95 31.50 169.00 14.00 800,600 1,000 13,300 1,282,700 29,800 2,477,300 14,000 64,500 12,300 1,908,300
BANK RATES
Euro BANK ABC Barclays Co-op Equity NBK KCB CBA CFC Stanbic GulfAfrican FCB Prime buy sell buy sell buy sell buy sell buy sell buy sell buy sell buy sell buy sell buy sell buy sell 108.18 108.48 107.41 108.22 109.36 109.65 107.91 108.54 107.70 107.96 107.65 108.00 107.24 107.07 107.70 107.96 107.76 107.99 108.00 108.20 107.30 107.90
$ 82.20 82.40 83.40 83.90 82.65 82.85 82.75 83.05 83.60 83.80 83.90 84.10 83.65 83.85 83.55 83.75 83.60 83.75 83.20 83.40 83.60 83.90
128.60 128.96 133.93 134.90 131.18 131.52 129.44 130.24 134.22 134.50 134.95 135.25 134.36 134.81 134.20 134.52 134.29 134.54 134.20 134.50 134.25 135.00
C$ 82.98 83.16 83.32 83.99 83.62 83.36 83.33 83.80 83.45 83.69 83.50 83.75 82.56 83.66 83.48 83.68 83.53 83.69 82.90 83.15 83.60 84.10
SF 89.48 90.00 89.39 90.12 90.63 90.86 89.07 89.69 89.61 89.87 89.60 89.85 89.61 90.01 89.66 89.67 89.72 89.91 89.90 90.15 89.30 89.90
IR 1.64 1.65 1.57 1.58 1.64 1.64 1.55 1.56 1.55 1.55 1.57 1.59 1.55 1.56 1.55 1.56 1.54 1.55 1.56 1.57
JY 99.82 100.18 104.08 104.97 99.05 99.30 99.89 99.46 104.39 104.75 105.20 105.50 104.41 104.80 104.44 104.69 104.50 104.73 104.60 104.90 104.60 105.10
ZR 10.88 10.97 10.23 10.31 10.78 11.10 10.80 10.84 10.24 10.27 10.20 10.30 10.19 10.31 10.25 10.28 10.25 10.29 10.35 10.40 10.35 10.50
9.00 44.00 190.00 68.00 46.50 69.50 16.00
Commercial & Services

3.50 12.55 130.00 35.00 21.00 42.00 6.50 Express Ord 5.00 Hutchings Biemer Ord 5.00 Kenya Airways Ord 5.00 Nation Media Group Ord. 2.50 ScanGroup Ord. 1.00 Standard Group Ord 5.00 TPS EA (Serena) Ord 1.00 Uchumi Supermarket Ord 5.00
3.80 14.70 171.00 51.50 24.00 44.25 15.90
3.70 20.25 14.70 172.00 52.50 24.00 44.00 15.40
8,000 197,000 15,800 5,600 100 18,500 132,200
197.00 207.00 35.25 21.50 119.00
Construction & Allied

101.00 125.00 19.00 10.00 51.00
Athi River Mining Ord 5.00 BamburiCement Ord 5.00 Crown Berger Ord 5.00 E.A.Cables Ord 0.50 E.A.Portland Cement Ord 5.00
201.00 145.00 10.80
196.00 145.00 26.00 10.85 60.00
21,800 2,500 11,200
CBK RATES
1 US Dollar 1 Sterling Pound 1 Euro 1 South African Rand Ksh/Ush 1 Ksh/Tsh 1 Ksh/Rwanda Franc 1 Ksh/Burundi Franc 1 UAE Dirham 1 Canadian Dollar 1 Swiss Franc 100 Japanese Yen 1 Swedish Kroner 1 Norwegian Kroner 1 Danish Kroner 1 Indian Rupee 1 Hong Kong Dollar 1 Singapore Dollar 1 Saudi Riyal 1 Chinese Yuan 1 Australian Dollar
17.50 12.30 25.00 30.00
Energy & Petroleum

6.80 8.90 13.75 13.50 KenGen Ord 2.50 KenolKobil Ltd Ord 0.05 KP&LC Ord 2.50 Total Kenya Ord 5.00
8.65 15.30 15.35
8.60 12.50 15.30 14.90
91,700 48,100 9,500
9.00 3.80 20.00 5.50 225.00 145.00 6.80 11.70 55.00 18.00
Insurance
British American Investments Co.0.10 CFC Insurance Holdings Ord.1.00 Jubilee Holdings Ord 5.00 Kenya Re Corporation Ord 2.50 Pan Africa Insurance Ord 5.00
5.30 7.90 180.00 11.35 26.75
5.35 7.65 180.00 11.05 29.50
57,900 13,900 3,800 363,000 1,000
24.25 10.95 280.00 90.00 6.00 3.05 60.00 20.00
Investment
Centum Investment Co Ord 0.50 City Trust Ord 5.00 Olympia Capital Holdings Ord 5.00 Trans-Century Ord 0.50
14.80 3.50 24.00
14.75 225.00 3.50 24.00
439,900 9,400 308,300
Mean 83.6764 134.4478 107.8984 10.2770 29.5425 18.8226 7.2004 16.4624 22.7815 83.5800 89.8422 104.6457 11.9964 14.2439 14.5148 1.5603 10.7764 66.8048 22.3122 13.2447 83.8145
Buy 83.5833 134.2793 107.7647 10.2590 29.4499 18.7419 7.1267 16.3246 22.7555 83.4571 89.7293 104.5056 11.9733 14.2278 14.4949 1.5587 10.7638 66.7225 22.2859 13.2294 83.6836
Sell 83.7694 134.6163 108.0322 10.2950 29.6351 18.9033 7.2742 16.6002 22.8074 83.7029 89.9551 104.7858 12.0194 14.2600 14.5347 1.5619 10.7889 66.8871 22.3385 13.2599 83.9454
Algerian Dinar Bahrani Dinar Djibouti Franc Egyptian Pound Jordanian Dinar Kuwait Dinar Lebanese Pound Libyan Dinar Omani Riyal Qatar Riyal Saudi Riyal Syrian Pound Tunisian Dinar UAE Dirham
ARAB CURRENCY/$
73.70 0.377 175.85 6.0353 0.7075 0.27774 1501 1.2406 0.3850 3.6405 3.75 57.3 1.5069 3.6725
Currencies are quoted against the US Dollar
MARKET UPDATES
FOR NATIONmobile ALERTS ON YOUR CELLPHONE, SMS THE STOCK, E.G. STOCKS KENGEN, SAFARICOM TO 6667 Each alert costs Sh10
Business News 33
IPO | Companys shares debut on Friday
Want a piece of Facebook? Get in line

Demand for stock high with large investment rms taking lions share
WASHINGTON, MONDAY
acebook may be the years hottest stock issue but try getting a piece of it. Small investors will find the line long and hurdles high to get even a handful of shares. And membership in Facebooks social network wont help, no matter how much you like the company. Likely this coming Friday, Facebook will be putting out on the market in its initial public offering a huge 337 million shares, with the price expected to be between $28 and $35 a piece. At the midpoint of that range, the social network will be raising $10.6 billion from investors. First in line are those with the big resources and long-
S. Korea operator mulls bid to buy London airport

SEOUL, MONDAY
South Koreas main airport operator is interested in buying Londons Stansted from the British Airports Authority to expand overseas business, an ocial said Monday. State-owned Incheon International Airport Corp is watching with interest Stansted as well as Glasgow airport, the Incheon ocial told AFP on condition of anonymity. We also have an interest in other British airports to be put up for sale in the near future, he said, adding no specic plans had been made yet including how to nance a potential bid. Britains Competition
Plans
Commission in 2009 ordered BAA, owned by Spanish conglomerate Ferrovial, to ofoad Londons Gatwick and Stansted airports as well as either Edinburgh or Glasgow to meet anti-competition requirements. BAA has subsequently sold Gatwick and Edinburgh airports to US investment fund Global Infrastructure
Partners. In February it lost an appeal against the order to sell Stansted. The Korea Economic Daily reported Monday that Incheon was in talks with companies such as JP Morgan Asset Management for a potential joint bid for Stansted or Glasgow. Incheon airport has been seeking to expand its overseas businesses. (AFP)
Its denitely not a rst-come, rst-serve basis

Company agent
term investment plans, such as insurance companies, pension funds and mutual funds. They will get the lions share of the handout. There will be a good chunk available to small investors though small is a relative term. Retail brokers say requests for the shares are high, and they will mostly divvy up what they receive between their best customers. At Fidelity, one of the largest US brokers, hot IPOs normally go to clients with half a million dollars in their accounts, or those who make at least 36 trades a year, according to a company agent. But depending on how valued you are, a $250,000 account could be enough, she said. Its denitely not a rstcome, rst-serve basis, she told AFP, not wanting to be identied. And even then, the broker wont promise even a minimum 100-share allocation. You could get the full amount (you request), or part of it, or none. At TD Ameritrade, the hurdles are an account with at least $250,000, or 30 trades in the past three months. In addition, said spokeswoman Beth Evegan, the clients general investment objectives and nancial status can be considered. (AFP)
Australia gas reserves could last 200 years

SYDNEY, MONDAY
Australia has enough gas reserves to maintain current production for almost 200 years, a report released Monday showed, supporting the nations push to become a global exporter to rival Qatar. The nation has identified gas resources of about 390 trillion cubic feet, but this could double if exploration for shale gas is successful, Energy and Resources Minister Martin Ferguson said. This report reconrms Australias capacity to continue to be a major gas exporter supplying the worlds growing demand for gas well into the future, he said. As Australia rides a minerals boom, Ferguson said the nations known gas resources, which the report found would maintain current production rates for 184 years, could rocket. While exploration for shale gas in Australia has only recently commenced and resources are poorly understood, shale gas could potentially double Australias gas resources, he said. Gas ranks third behind coal and uranium as the countrys largest energy resource, the Australian Gas Resources Assessment 2012 found. Most of the countrys conventional gas resources sit o the north-west coast and are being progressively developed for domestic use and liquid natural gas export. The report by Geoscience Australia, the Bureau of Resources and Energy Economics and the Department of Resources found the industry was being transformed by technology and markets, with new gas resources coming into play. (AFP)
34 |
COUNTY NEWS
RAINS | Houses partially submerged in water
AIRPORTS BODY AND VILLAGE TUSSLE OVER SH52M DEAL Elders claim KAA has reneged on plan to build school. Page 36
Farmers count losses as oods wash away crops worth millions

Destruction took place when River Chania burst its banks following a downpour in Nyeri
BY NATION TEAM
newsdesk@KE.nationmedia.com armers in Nyeri County are counting losses when crops worth millions of shillings were washed away after River Chania burst its banks. This followed a downpour in the Aberdares Forest and parts of the county on Sunday night. The aected farms were along the river banks. Some residents of Chania Estate have already ed their homes due to ooding. When the Nation visited the area yesterday, some houses were partially submerged in water. Ms Faith Kagendo, one of the residents, said they could hardly sleep on Sunday night due to the loud noise made by the raging river. Huge logs were carried downstream. This is the rst time to see the waters reach the houses since we started living here more than 10 years ago. Its unfortunate that we have nowhere else to go, said Mr John Kivue. The manager of Riverside Farm in Nyeri, Mr Paul Nderitu, said they lost onions and kales worth about Sh1 million after they were swept by the oods. We had spent Sh753,000 in planting 27,000 kale stems and 120,000 onions on the familys five-acre farm. Taking into account the cost of seedlings, fertiliser and labour, we have lost about Sh1 million, said Mr Nderitu. He said the land was last ooded in the 1960s, adding that the river had not swept all their crops in the past. Farm worker Wilfred Kimani said
BRIEFLY
KIRINYAGA
Students count losses after re guts dorm

Property worth thousands of shillings was destroyed when a re broke out at a school in Kirinyaga County. The Sunday nigh re at Mwea Boys secondary school destroyed students uniforms, blankets, books, boxes, bags and mattresses. No one was injured during the 8pm incident. The boys were in their classrooms doing prep when thick smoke started coming from a dormitory. Students and re ghters from the Local Government ministry and the police put out the re after four hours.
EVACUATION
LAIKIPIA
Cheptais DC rules out resettlement scheme

District commissioner Omar Salat said people living on the slopes of the mountain have been advised to leave. He, however, said the evacuation was voluntary since the government was not providing alternative land for resettlement. We are advising them to move to safer areas, especially during this season of heavy rainfall, he said.
he woke up around 6am and could not go out of the house because it had been ooded. I tried to come out of the house but it was dicult. It has been raining heavily for the last two weeks, said Mr Kimani. Pupils of Manyatta Academy continued to have their classes although the river is just a few metres from the classrooms. Ms Pauline Ngari, a teacher at the school, said they wish the water would not get into the classrooms. At the same time, four houses were swept away by landslides as heavy rains continue pounding West Kamagak location, Rachuonyo South District. After the incident near Ranyienya Hill on Sunday, the wave of
Union wants teachers killer brought to book

Teachers in Laikipia County want a man who stabbed to death their 26-year-old colleague arrested. Ms Phyllis Muthee was a teacher at Ol Moran Secondary School in Laikipia West District. According to Knut ocial Jackson Thange, the suspect was her lover. He allegedly ambushed the teacher in her house last Thursday. The deceased was said to have diered with the married man and was planning to end the relationship. Area deputy police boss Patrick Makokha said they were tracking down the suspect.
This road leading to the Lopiding sub-District Hospital in Lokichogio was damaged by oods. In Nyeri, crops worth millions of shillings were washed away after River Chania burst its banks.
landslides hit again yesterday, forcing residents to ee. The villagers were now exposed to health risks, including water-borne diseases, Mr Nicholas Mireri, a community leader, told journalists. Mr Mireri appealed to the Ministry of Agriculture to provide seeds and fertiliser to the families whose elds were aected to avert hunger. He also appealed to the government to provide the homeless villagers with alternative land where they can settle. A visit to the area by the Nation established that several walls of some houses had cracks and the land had been seriously eroded. Roads have been turned into waterways. Elsewhere, the Mt Elgon District Disaster Management Committee is on high alert over fears of landslides
PETER WARUTUMO | NATION
Five-acre farm
Alternative land
as downpours continue pounding the area. At least four houses have been attened by rocks that have tumbled since the onset of the rains. Fears of landslides also come after the rains displaced residents and destroyed crops in Taikut village, Toroso location. Kimama, Kapkirongo and Chebwek villages, which are on the slopes of the mountain, are prone to landslides. The residents appealed to the government for alternative land to avert a crisis. Area MP Fred Kapondi said the countrys preparedness for disasters was poor. He asked Special Programmes ministry senior officials to tour the area and look for ways of resettling the people living on the slopes. We are sitting on a time bomb, he said. Reported by Eric Mutai, Otieno Owida and Erick Ngobilo
KISUMU
Travellers stranded in crackdown on vehicles

Hundreds of commuters were yesterday stranded in South Nyanza during a police crackdown on unroadworthy vehicles. Matatu operators kept o the roads on getting wind of the operation. But some had their vehicles impounded. Boda boda motorcyclists cashed in on the situation as they played hide and seek with the police. They doubled the fares. Parents protested over the timing of the crackdown, saying they were stranded with their school-bound children.
Police shoot two raiders dead as insecurity worsens

BY NATION CORRESPONDENTS Baringo
Two raiders were yesterday shot dead in Bartabwa division of North Baringo district. Baringo deputy police boss Samuel Muthamia said police ocers were given a tip that raiders, suspected to be Pokots, planned to launch an attack in the area. We laid an ambush and when the raiders saw they were cornered, they engaged police in a shootout, resulting in the death of two. Five others escaped with gunshot wounds, he said. There has been an upsurge of insecurity in Bartabwa division recently, with three people killed since the beginning of the year. The most aected areas are Cheptigit, Kapchumbi, Kasisit, Ayatya, Chebukar, Chesawany, Kinyach and Sitek where more than 2,000 people have ed their homes. Baringo North MP William Cheptumo and district commissioner Joshua Ogango were recently attacked as they headed to a peace meeting at Chemoe. Last week, the situation almost got out of hand after members of the Tugen community barricaded Loruk-Marigat road for hours following the killing of a 20-year-old man in Chemoe. A week earlier, raiders shot and injured Mr James Chesut who was herding goats in Sibilo location. Meanwhile, Tugen women yesterday called for a truce, saying innocent people were suering as the conict between the Pokot and members of their community escalated. Ms Caroline Yego, the secretary of a group calling itself Concern for the Development of Rural Women, said women and children were most aected. We are concerned that women, children and the disabled are the main suerers in this conict, she said. We appeal to the communities to co-exist peacefully and resolve their dierences through dialogue, she said. Ten schools in Bartabwa and Kipsaraman divisions did not reopen for the second term after residents ed their homes. We grew up hearing gunshots but we are now saying enough is enough. The world should hear our cries, Ms Yego said.
KILIFI
Farmer, 70, hacked to death in night attack

A 70-year-old has been hacked to death by unknown people at Kaloleni in Kili County. Farmer Mohammed Masha was killed when he got out of his house to respond to disturbances at his cow shed, according to his son, Mr Kitsao Masha. My father had gone to check on his cows when he was attacked, Mr Masha said of the Sunday incident. Police are investigating the killing. Elsewhere, a man is battling for his life after he was stabbed allegedly by his wife in Kisauni.
We are concerned that women, children and the disabled are the main suerers in this conict
Concern for Development of Rural Women secretary Caroline Yego
County News 35
DEVOLUTION | Funds debate rages
Leaders accuse team of bias in cash allocation

Communities say poverty should have been yardstick and threaten legal action
BY HASSAN HUKA
hassan_huka@yahoo.co.uk OPINION
Elders oppose report on gays and prostitutes

Muranga
Kikuyu elders and an MP have condemned a report by a human rights body that called for the legalisation of same-sex marriages and prostitution. Kikuyu Council of Elders chairman Wachira Kiago and Kiharu MP Muturi Mwangi have also asked the government and the church to reject calls for approval of gay marriages noting that the practice was un-African and against Christian teachings. The Kenya National Commission on Human Rights (KNCHR) recently released a report calling for the legalisation of the two acts, which are currently illegal under Kenyan law. However, the report has drawn sharp criticism from religious leaders who have also threatened to challenge KNCHR in court. Such proposals are ill-conceived and retrogressive. It is an assault on many of our cultures, which do not even have words to describe homosexuality, said Mr Kiago. The elders insisted that such a move would be resisted vehemently and through all available mechanisms. Speaking in his Kiharu backyard yesterday, the MP strongly opposed proposals to enact laws that protect homosexuals adding that they threatened the institution of marriage. Marriage is a relationship between one man and one woman and any attempts to support same-sex marriages are unacceptable, he added.
Growing opposition
Experts agree
Population experts want the formula for sharing county funds changed. The experts said the formula which the CRA should use must be based on poverty, rather than population. University of Nairobi population scientist Dr Alfred Agwanda said a formula based on population will perpetuate poverty in less endowed counties.
ebate continues to rage over revenue allocated to pastoralist counties, with northern leaders demanding a poverty-based formula. The leaders accuse the Commission on Revenue Allocation (CRA) of skewed distribution of funds in favour of developed and densely populated areas. Samburu East MP Raphael Letimalo called on commission chairperson Micah Cheserem to revisit the allocations and use poverty, and not population, to determine the distribution. How can we uplift the living standards of the marginalised people if the CRA allocates huge sums to developed areas despite the Constitution demanding equal treatment for all Kenyans, he said. He said the CRA should have considered pastoralist communities lifestyles and their underdevelopment. Leaders from Isiolo, Samburu and Marsabit counties also demanded more funds, saying the allocations would not bridge the poverty gap. They warned that they will take legal action if their grievances were not addressed. The leaders were speaking at a public consultation session to
Sh8.6bn
The money allocated to Livestock ministry in Budget estimates
discuss the Budget estimates for 2012/13. Mr Letimalo criticised the Sh8.6 billion budget allocation to the Livestock ministry, saying the interests of pastoralist communities were ignored. A lawyer, Mr Godana Doyo, urged MPs to shoot down the proposal when it comes before Parliament, saying that the CRA was experimenting with human lives. Mr Doyo, who is eyeing the Isiolo governors seat, said the funds allocated were insucient to even establish the county government.
Saudi resumes food aid to local Islamic centres

BY NATION CORRESPONDENT Mombasa
Saudi Arabia has resumed food donations to Kenyan Muslims. The Saudi government withdrew its support to local Islamic institutions 10 years ago following claims that the relief supplies were being diverted to the local market by corrupt individuals. Beneciaries of the support included learning institutions, mosques and childrens homes. Yesterday, students from 32 Muslim boarding schools in Mombasa, Kwale and Kili counties received donations of 5,000 cartons of canned meat. The meat from animals slaughtered by millions of pilgrims during the recently concluded Hajj pilgrimage, was donated through the International Islamic Relief Organisation. Mr Sami Abdirahim of Muslim World League-Kenya handed over the donations to the principals of the selected schools.
5,000
Cartons of canned meat that Saudi Arabia donated to 32 Muslim schools at the Coast
It was sacricial meat from animals which were slaughtered during Hajj and the Saudi government preserved it to international standards for distribution to less privileged people around the world, said Mr Abdirahim.
36 | County News
Medic warns on counterfeit malaria drugs

Kisumu Nyanza residents have been warned against using counterfeit drugs to treat malaria. Fake drugs would hamper the ght against the disease at a time when the cases are expected to peak, warned Dr Ojwang Lusi, the provincial director of medical services. Nyanza is a malaria highrisk zone because it is next to the lake which is a breeding ground for mosquitoes. The situation is worsened by the ongoing floods that have resulted in a lot of stagnant water, said Dr Lusi. He cautioned residents against buying over-thecounter drugs, saying that they could be counterfeit and thus ineective. Uninformed residents still use drugs like Fansidar, Chloroquine and Metakeln to self-medicate instead of seeking professional treatment, said Dr Lusi. He said self-medication
DEADLY FIND | Two arrested
Professional treatment
using drugs that have been phased out by the government increases resistance to malaria treatment. A report by the Johns Hopkins Malaria Research Institute in the US shows that dangerous anti-malarial counterfeits have ooded the Kenyan market and residents are falling prey because of their tendency to self-medicate.
Changamwe Police Commander Otieno Owuor inspects an AK47 rie with 51 rounds of ammunition, two magazines, three mobile phones and a fake car number plate, which were found in the ceiling of a house that was still under construction at Kwa Shee Village in Mikindani. Two workers at the construction site were arrested.
AGREEMENT | Money squandered
KAA put on the spot over airport deal

Authority denies claims that it did not keep promise to upgrade a school for displaced villagers
BY JUSTUS WANGA AND SHARON DIANGA
newsdesk@ka.nationmedia.com cording to the schools head teacher Okello Kanyandong, the current buildings are old and can collapse any time. I have been forced to renovate the classrooms to protect the children, he said. In an agreement with the school committee, the new school was supposed to be built into an ultra-modern learning centre with an ICT library, a hall and two- storey buildings. However, Kisumu International Airport manager Joseph Okumu downplayed the issue saying the authority has done its best. We have built eight classrooms, an administration block and a child centre, what more does the community expect from us? he asked. BACKGROUND
he Kenya Airports Authority (KAA) and leaders of Usoma village in Kisumu are embroiled in a tussle over a Sh52 million deal to upgrade a local school. The authority had agreed to upgrade the primary school using funds from the World Bank after the community gave in to requests that they should relocate from the Kogony area to pave way for the expansion of Kisumu airport. But the leaders are protesting at what they say is failure by KAA to keep their side of the bargain. Area councillor George Weda said there is a possibility that part of this money has been squandered. The World Bank released Sh52 million shillings to build an ultra-modern school, however until now, the authority claims it has used Sh19 million on the structures yet they are not saying where the remaining Sh33 million is, he added. The students are still studying in the old classrooms as they await the KAA-sponsored project to be completed. Ac-
What both parties agreed

Relocation: Residents were supposed to move out of the area to make way for the airports expansion. World Bank support: The bank was to provide Sh52 million to upgrade the school and they claim money was released Bad repairs: Residents say KAA did not honour deal
37
PIONEER ASSURANCE COMPANY LIMITED
Head Office, Pioneer House, Moi Avenue P.O. Box 20333 - 00200 Nairobi, Kenya, FAX: 2224985 TELEPHONE: 2220814 (10 LINES) Email: info@pioneerassurance.co.ke Website: www.pioneerassurance.co.ke
SPECIFIC PROCUREMENT NOTICE

Invitation of Bids for Supply of Drilling Materials for Menengai Phase I Geothermal Project Loan No. 2100150026101 IFB No. GDC/HQS/057/2011-2012 Invitation for Bids
1.0 This Invitation for Bids (IFB) follows the General Procurement Notice (GPN) for the Menengai Geothermal Phase I Project which appeared in the United Nation Development Business (UNDB) online No.AfDB46816/12 of 1st February 2012 and on the African Development Bank Groups Internet Website on January 27, 2012. The Government of Kenya has received Financing from the African Development Bank (AfDB) towards the cost of Menengai Phase I Geothermal Project. It is intended that Part of this loan will be applied to eligible payments under the contract for Supply of Drilling Materials. Geothermal Development Company (GDC) is the Implementing Agency for the Project. GDC now invites sealed bids from eligible bidders for the supply of assorted Drilling Materials including Drilling Casings; Rock bits; Casing accessories; Wellhead materials and valves; Drilling mud and mud additives; and Cement and Cement additives in varying quantities. The specific descriptions and quantities are provided in the tender document which may be obtained from the address below.
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2011 2011 2010 KShs KShs INCOME Gross Written Premium 759,262,801 545,038,452 Outward Reinsurance Premium 78,922,315 95,300,983 Net Written Premium 680,340,486 449,737,469 Gross earned premium 706,019,625 572,173,080 Net earned premium 627,097,310 476,872,097 Investment income 77,956,636 42,533,180 Commissions earned 11,062,621 19,717,107 Other income (796,107) 3,675,855 Total Income 715,320,460 542,798,239 OUTGO Claims and policyholder benefits payable 453,914,227 289,922,843 Recoverable under reinsurance arrangements 68,302,084 57,555,861 Net claims incurred 385,612,143 232,366,982 Operating and other expenses 149,413,051 136,752,605 Commission payable 141,598,340 118,222,100 Total Outgo 676,623,534 487,341,687 Profit before tax Income tax expense Profit for the year after tax OTHER COMPREHENSIVE INCOME TOTAL PROFIT & OTHER COMPREHENSIVE INCOME Earnings per share (basic and diluted) STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011 SHAREHOLDERS FUNDS Share capital Retained earnings Statutory Reserve TOTAL SHAREHOLDERS FUNDS ASSETS Property and equipment Intangible assets Investment property Financial assets at fair value through profit or loss Policy loans receivable Government securities held to maturity Receivables arising out of reinsurance arrangements Receivables arising out of direct insurance arrangements Reinsurers share of insurance liabilities Deferred acquisition costs Other receivables Deposits with financial institutions Bank and cash balances TOTAL ASSETS LIABILITIES Insurance contract liabilities Payable under deposit administration contracts Unit linked payables Outstanding claims Term loan Payables arising from reinsurance arrangements Other payables Unearned premium reserve Tax payable TOTAL LIABILITIES NET ASSETS ADDITIONAL DISCLOSURES KEY RATIOS Capital Adequacy ratio Solvency Ratio Claims Ratio Expense Ratio AMOUNTS PAYABLE UNDER DEPOSIT ADMINISTRATION CONTRACTS Balance at 1 January Deposits received during the year Surrenders and Annuities paid Management Charges Interest payable to policyholders Balance at 31 December INVESTMENT CONTRACT LIABILITIES Balance at 1 January Deposits received during the year Withdrawals and Benefits Paid Interest payable to policyholders Balance at 31 December 38,696,926 8,897,888 29,799,038 29,799,038 19.87 2011 KShs 55,456,552 6,280,491 49,176,061 49,176,061 32.78 2010 KShs 150,000,000 59,844,459 61,065,848 270,910,307 14,273,313 1,264,554 348,791,400 28,723,071 98,143,515 169,844,516 16,425,826 78,879,968 13,398,274 9,128,420 43,958,582 49,353,031 14,410,269 886,594,739 286,345,888 14,444,796 70,647,269 109,653,298 3,811,616 13,042,253 47,083,965 70,099,208 556,139 615,684,432 270,910,307 2010 100% 474% 53% 47% 2010 Kshs 9,558,374 4,188,424 301,535 134,011 1,133,544 14,444,796 50,097,370 16,167,335 782,544 5,165,108 70,647,269
2.0
3.0
150,000,000 80,282,758 70,426,587 300,709,345 15,003,384 2,346,780 391,600,000 29,299,598 102,409,180 167,364,536 37,534,117 125,596,709 8,633,967 26,051,610 55,294,779 43,866,250 16,165,518 1,021,166,428 346,242,630 18,269,694 56,852,662 104,694,782 2,572,805 8,358,428 58,051,493 123,342,384 2,072,205 720,457,083 300,709,345 2011 100% 299% 60% 38% 2011 Kshs 14,444,796 5,160,636 1,996,860 119,451 780,573 18,269,694 70,647,269 5,696,856 22,829,905 3,338,442 56,852,662
Interested bidders may obtain further information and inspect the bidding documents at the address below between 9.00am and 4.00pm during weekdays: TENDER DESCRIPTION: INSTALLATION OF AN EMERGENCY 5-10 MW GEOTHERMAL MODULAR POWER Manager, Supply Chain PLANT IN MENENGAI GEOTHERMAL FIELD Geothermal Development Company Limited Riverside Drive, TENDER NO: GDC/HQS/062/11:12 P. O. Box 100746-00101 Geothermal Development Company Limited (GDC) Kenya state-owned corporation, tasked with Nairobi, is a 100% asaat@gdc.co.ke and copied to: mmbevi@gdc.co.ke
4.0
INVITATION TO TENDER
accelerating the development of geothermal resources in Kenya. GDC is developing at least 5,000MW by 2030 in line with Vision 2030 targets. GDC wishes to procure on an emergency basis, a geothermal modular power plant to be installed at the Menengai geothermal field and commissioned within the shortest time possible so as to reduce the high 5.0 A complete set of bidding cost associated with drilling using diesel. documents may be purchased by interested
bidders on the submission of a written application and upon payment Geothermal Development Company Limited (GDC) now invites bids from eligible tenderers for the of a non-refundable fee of Kshs. 5,000 or USD 60. design, financing, supply, installation and commissioning of a 5-10 MW geothermal modular power plant Conditions of Contract information and inspect of the African Development Interested Tenderers may obtain further are the provisions the tender documents at the Geothermal Development Company offices at the address given below: of Goods. Bank Standard Bidding Document: Procurement 7.0
unit at Menengai geothermal field under a 15 YEAR BUILD OWN, OPERATE AND TRANSFER (BOOT ARRANGEMENT) 6.0 The provisions in the instructions to Bidders and in the General
Manager, Supply Chain Bids must beGeothermal Development Companyat GDC Riverside Office 1st delivered to the tender box Limited Riverside Office, Riverside Drive, Floor, Riverside Drive, on or before 1400hrs on June 28, 2012, and P. O. Box 100746-00101 Bids must beNairobi, Kenya by a Bid Security of USD 100,000. accompanied
A complete set of bidding documents may be purchased by interested bidders upon payment of a non8.0 Bids will be opened immediately thereafter in the presence of bidders refundable fee of KES 5,000.00 only payable to GDCs accounts office in cash or by bankers cheque. Bids must be accompanied by a Bid Security of USD 10,000 only. Boardroom.
representatives who choose to attend at GDC Riverside Office
Bids must be delivered to the Geothermal Development Company Limited, and deposited in the tender box on 1st Floor, Riverside Office, Riverside Drive, on or before 14:00hrs on May 02, 2012, and immediately, thereafter, be opened in the presence of bidders representatives MANAGER, SUPPLY CHAIN who choose to attend. MANAGER, SUPPLY CHAIN
The above statement of comprehensive income and statement of financial position are extracts from the financial statements of the company. The financial statements were audited by Ms Ernst & Young and received an unqualified opinion. The financial statements were approved by the Board of Directors for issue on 27th April 2012 and signed on its behalf by: B. Omuse S. Jeraj M. Kimani Chairman Director Principal Officer

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Ministers defend county positions

Back Page Kibaki was right in appointments, say ministers

Designers join war on malaria

Nairobi | Tuesday, May 15, 2012

KSh50/00 (TSh1,000/00 : USh1,500/00) : RFr500/00) www.nation.co.ke

MPs got the boot for being disloyal

Raila lobby les suit to kick out 100 defectors

UNMASKED | MPs grill Clinix directors over ghost medical facilities

AND PETER LEFTIE

FOR MORE, SEE PAGE 11

Gang kills three in raid on IEBC Coast oce

DRAFT LAW TARGETS PYRAMID SCHEMES

AND DANIEL NYASSY

DAILY NATION Tuesday May 15, 2012

Lobby takes a stab at defectors

GUIDE TO YOUR DAY

Review of court rules

PAUL WAWERU | NATION

Approximate number of MPs who have defected from their parties.

TO COMMENT ON THIS STORY, SCAN THE CODE OR GO TO www.nation.co.ke/ 15052012

JARED NYATAYA | NATION

DAILY NATION Tuesday May 15, 2012

RESEARCH | New material repels the malaria-causing mosquitoes

Designer clothes join malaria war

Malaria decline by 56 per cent

Long-term goal of science is to protect life.

DAILY NATION Tuesday May 15, 2012

Three killed as gang raids IEBC oces

This should serve as a wake-up call to security agents

G-TIDE SUPER OFFER!

Ksh. 3,499 G-TIDE G120

DAILY NATION Tuesday May 15, 2012

Ford-K rules out coalition talks

Ministry recalls bad maize sent to IDPs

SULEIMAN MBATIAH| NATION

Two arrested over theft of relief food

PS tells court man forged his signature

Three herders killed in attack on villages

The number of cows the rustlers stole from Ndumuru village

DAILY NATION Tuesday May 15, 2012

NGOs wrangle over law to rein in sector

Media owners elect new ocials to body

What Bill seeks to achieve

Lobby to clear air on Makueni CDF claims

Agent stole Sh6m from me: Kajwang

Somali to be deported after she pays ne

Women inmates get food and pads gifts

DAILY NATION Tuesday May 15, 2012

DAILY NATION Tuesday May 15, 2012

Leave Raila alone, ODM rivals told

DISPUTE | Court told Nyamweya used company for failed deal

Football chiefs rm dragged into land suit

EMMA NZIOKA | NATION

DAILY NATION Tuesday May 15, 2012

CJ seeks to be struck o lawsuit

LITIGATION | Judicial ocer challenges decision to send her home

What Ms Manyasi wants

Driver arrested after bus runs over couple

Raila visits Shikuku, says bill will be paid

CAMPAIGN TRAIL | Kalonzo readies for a traditional Maasai jig

LSK quizzes Abdullahi over pupilage papers

DAILY NATION Tuesday May 15, 2012