Wazua
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Kenya Re - 2018 and beyond
Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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Ericsson wrote:Ebenyo wrote:Ericsson wrote:Ebenyo wrote:VituVingiSana wrote:sparkly wrote:The Cartels win. My Kenya Re shares are now reclassified as Available for Sale. That's my point. All the rest is "window dressing" [Unless, there's a clear cut case that Mwarania was incompetent or corrupt] If he was not competent then when did the "Board" figure it out? Aren't there assessments? Why not ease him out for "personal reasons" [the impromptu firing causes jitters]? If corrupt, then it should be for us to see. Or say so in the press release. I admit to my error of holding KenRe as a core holding. Its risky to put a financial as a core holding.I also have kcb as my core holding comprising 29% of my portfolio.Im planning to change.I was thinking safaricom or kenol.Then valuation discouraged me but im waiting for full year results to make a decision. I also decided to follow @Young advise e of balancing between financials and industrials. Financials-40% industrials-60% Toa masaibu yako hapa ya core holdings. Stick to the topic of Kenya Re Ericson has never shared his portfolio.Vvs is very transparent.We all know he is in Kenya re,kenol,equity,i&m,dtb,williamson,c&gand ftgh. So it seems Ericson portfolio looks like this: Eaagads,olimpya,Eveready,express,kurwitu,atlas,rea vipingo and hutchings biemar. @ Ebenyo I've been sharing and even saying my next moves kama hujakuwa ukifuatilia shauri yako. nitaanza kufuatilia kwanzia leo.Hebu post vizuri kama vile vvs anafanyanga. Towards the goal of financial freedom
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Cash (liquidity, bonds) - There's almost 20/- in cash (& near-cash) in KenRe's books.
Construction - KenRe wanted to build a new tower in Upper Hill. Bad idea as there is an over-supply of office space as well as the potential for corruption as the contracts are handed out to favorite sons.
Land - I expect land acquisitions to jump. Of course, we know that KenRe had to clean its books of shady deals/purchases. The cycle could start again. @vvs we wait to see,some of the things you are mentioning are speculations Give me an example of a single GoK controlled (listed) institution that hasn't been pillaged or mismanaged. Mismanaged/pillaged: KQ NBK KPLC KenGen [needed a massive restructuring to convert debt to equity] The fault is mine. I got complacent when I saw longevity in the MD's tenure and what seemed a relatively clean firm. Apart from the history [before my time] of poor (scam) land investments, I had not come across a scandal in KenRe. I should have learnt my lesson with earlier investments in GoK controlled/influenced firms and NEVER put money into a GoK controlled listed firm. I cannot even sell out as the demand is quite muted. @vvs Even private firms have been mismanaged.Mismanagement I can't single out GoK firms only,even in private companies it's there. Look at ARM,Olympia Capital,Transcentury,Home Afrika,Atlas Developmet,Hutchings Biemer,Nakumatt etc. I would suggest you look at each company uniquely for any trace of mismanagement. Even the kenol kobil you talk about Jacob Segman was nearly finishing it off Give me 2 examples of listed (GoK controlled or heavily influenced) entities (except KenRe) that hasn't been mismanaged. I don't know any [except KenRe] that haven't had to be bailed out. You know I have excluded "scams" like Merali from my investment list. Other exclusions are the "GEMS" like NBV and Kurwitu. Private firms: The record despite the hiccups [which will happen] is much better. BAT EABL KK [no bailout, led to the brink by Segman's hedges but has recovered nicely] Safaricom [Controlled by Vodafone] Equity DTB Jubilee Unga [this was almost taken to the cleaners but survived after Seaboard seconded Nick Hutchinson] FTGH [slow start but seems to be on the right track despite the hiccups] And many, many more. Safaricom was a state corporation until 2008. It was 60% owned by Telkom Kenya which was 100% owned by GoK Was Safaricom profitable before Vodafone came in? [MJ said when he took over Safaricom, it was a mess. MJ was seconded by Vodafone who had control] Safaricom how MJ came into the picture maybe I discuss it in another topic about safaricom. For now lets stick to kenya re. FYI MJ was seconded by Vodafone when they acquired a stake in safaricom. Yep, it bears repeating. Perhaps what KenRe needs is a (foreign?) proven Reinsurance MD/CEO who has experience in expanding into emerging markets, new products, different/better underwriting... I still think Mwarania was fired to allow for looting KenRe BUT I hope I am mistaken. Kemei and Rotich... They are the most powerful board members. As @Obiero says "I speak in code" Why do I say "foreign" [KenRe is the largest Reinsurance firm in EAC so where in EAC does one find an experienced hand? [Another option is to get someone from Zep Re] Mbeshi (Acting MD) is a property guy not a reinsurance professional. I dread having a lackey of "Godfather #1" in control but that may happen. Again, I made a grave error in making a GoK controlled firm a "core holding" and I shall not make that mistake again. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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@vvs Even a local MD/CEO can be found that can steer kenya re into greater heights. It just depends on the political will. Martin Oduor Otieno was a local who steered KCB to the path of greater heights. Jeremy Awori is doing a good job at Barclays bank kenya Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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I have managed to fully disembark from KenRe. Luckily for me I was neutral on price thus only loss made was on brokerage commissions which I had more than recovered from dividends. Furthermore, this was less than 5% of my equity portfolio. With all the uncertainty and political underhands, I consider KenRe to be too risky. I would have loved to hold into the future and wait for value to unlock but that is not guaranteed any more. My greatest anticipation was a posibility of government divesting more and reducing stake to allow for more professional running of its affairs. I will stick with Jubilee as far as insurance business is concerned. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Member Joined: 5/22/2014 Posts: 321 Location: Ndeiya
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In my utafiti life, I have interacted with the 6 reinsurance firms which are physically situated in Nairobi...before the entry of SCOR, WICA Re. Africa Re is the largest in all core spheres. The current affairs in Kenya Re have nothing to do with mismanagement.
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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Mtafiti wrote:In my utafiti life, I have interacted with the 6 reinsurance firms which are physically situated in Nairobi...before the entry of SCOR, WICA Re. Africa Re is the largest in all core spheres. The current affairs in Kenya Re have nothing to do with mismanagement. They have to do with what Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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contrarian.    Pesa Nane plans to be shilingi when he grows up.
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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Ericsson wrote:@vvs
Even a local MD/CEO can be found that can steer kenya re into greater heights.
It just depends on the political will.
Martin Oduor Otieno was a local who steered KCB to the path of greater heights.
Jeremy Awori is doing a good job at Barclays bank kenya Reinsurance is a technical industry/sector. Awori ran SCBK TZ so he is an experienced hand. Wasn't MOO a banker before he joined the "Dream Team" and KCB? I have skin in the game. Since I am unable to sell the shares off [low demand] I would rather have a Mikosz than a Naikuni running the show. And certainly not a Tarus. Political Will... yeah, right. We know where that is at. KPLC EAPCC KQ (Naikuni/Mbugua/Ngunze) NBK And others. [For unlisted Gok entities, the list is almost endless] I thought KenRe was the exception but there are no sacred cows for crooks in GoK. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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Gatheuzi wrote:I have managed to fully disembark from KenRe. Luckily for me I was neutral on price thus only loss made was on brokerage commissions which I had more than recovered from dividends. Furthermore, this was less than 5% of my equity portfolio. With all the uncertainty and political underhands, I consider KenRe to be too risky. I would have loved to hold into the future and wait for value to unlock but that is not guaranteed any more. My greatest anticipation was a posibility of government divesting more and reducing stake to allow for more professional running of its affairs. I will stick with Jubilee as far as insurance business is concerned.  So true. I would also bail out and I will try to do so. I fear the reality is that the Godfather #1 nexus is going to kill off any firm that can be killed off. 3 years ago, KPLC was brimming with cash and had a good cashflow. No more. Let me prepare for the worst. KenRe was planning to build another office block [WHY??? There's an oversupply in UH] and I fear the "cost" will jump as construction costs rise as "favored sons" get contracts. KenRe had bought lots of land with "fake" titles. This was cleaned up by Mwarania. Now we could be back to the same. Once I am out of KenRe, I will not have another GoK firm as a core holding. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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All my banks are up. Equity+NIC+I&M+Stanbic KenRe is down. Sigh. From the archives https://www.nation.co.ke...376704-d45xx4/index.htmlGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 9/11/2014 Posts: 228 Location: Nairobi
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Mtafiti wrote:In my utafiti life, I have interacted with the 6 reinsurance firms which are physically situated in Nairobi...before the entry of SCOR, WICA Re. Africa Re is the largest in all core spheres. The current affairs in Kenya Re have nothing to do with mismanagement.
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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Sacked Kenya Re chief blames his job loss on chairman ouster bid https://www.nation.co.ke...43464-8728ldz/index.htmlGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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[quote=VituVingiSana]Sacked Kenya Re chief blames his job loss on chairman ouster bid https://www.nation.co.ke...3464-8728ldz/index.html[/quote] Dirty games being played. The chairman wont survive the AGM now that he doesn't have support of Kinyua and in extension gava Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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Ericsson wrote:[quote=VituVingiSana]Sacked Kenya Re chief blames his job loss on chairman ouster bid https://www.nation.co.ke...3464-8728ldz/index.html[/quote] Dirty games being played. The chairman wont survive the AGM now that he doesn't have support of Kinyua and in extension gava 1) Kemei would not have moved against Mwarania if not for the support of Rotich and by extension Godfather #1. 2) Q: Who votes for GoK in this scenario? A: The National Treasury of Kenya owns 420mn (60%) of the shares in KenRe. Who heads Treasury? Cabinet Secretary The National Treasury - Henry Rotich 3) There are 11 directors including Mwarania. Since can't vote on his own extension/job that means there are 10 directors. 3 are against him [Kemei, Maina Mukoma and Chiboli Shakaba] #4 is Rotich #5 is possibly Ng'atuny And the Chairman probably gets a tie-breaking vote. The Game is Over. [Of course, I would rather have Mwarania back but he should stay out of the politics and stick to managing the firm] Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:[quote=VituVingiSana]Sacked Kenya Re chief blames his job loss on chairman ouster bid https://www.nation.co.ke...3464-8728ldz/index.html[/quote] Dirty games being played. The chairman wont survive the AGM now that he doesn't have support of Kinyua and in extension gava 1) Kemei would not have moved against Mwarania if not for the support of Rotich and by extension Godfather #1. 2) Q: Who votes for GoK in this scenario? A: The National Treasury of Kenya owns 420mn (60%) of the shares in KenRe. Who heads Treasury? Cabinet Secretary The National Treasury - Henry Rotich 3) There are 11 directors including Mwarania. Since can't vote on his own extension/job that means there are 10 directors. 3 are against him [Kemei, Maina Mukoma and Chiboli Shakaba] #4 is Rotich #5 is possibly Ng'atuny And the Chairman probably gets a tie-breaking vote. The Game is Over. [Of course, I would rather have Mwarania back but he should stay out of the politics and stick to managing the firm] @vvs Kinyua wouldn't have made that move without the support of the president. Rotich receives instructions and reports to the president.Finance ministry is under the president wing/side even though Henry Rotich is CS. March 20 is on Tuesday Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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[quote=VituVingiSana]Sacked Kenya Re chief blames his job loss on chairman ouster bid https://www.nation.co.ke...3464-8728ldz/index.html[/quote] This politics will best be settled on this year AGM. Towards the goal of financial freedom
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Just asking, how do you write to ED/MD/CEO to organzise the removal of Chiar and Board Member(s)/Director(s). I thought this should be done by lobbying in the Board or voting during AGM? In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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Angelica _ann wrote:Just asking, how do you write to ED/MD/CEO to organzise the removal of Chiar and Board Member(s)/Director(s). I thought this should be done by lobbying in the Board or voting during AGM? The MD is the secretary of the board. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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1) If Kinyua told Mwarania to arrange to replace Kemei, then why go after Mwarania and not Kinyua? 2) If the replacement was to be done on 16th June 2017, during the AGM, then why weren't they (Kemei, Mukoma, Shakaba] replaced? [Didn't GoK vote for them?] 3) Don't the 3 [Kemei, Mukoma, Shakaba] have another 3-year term from 2017? 4) Did Rotich out-manuever Kinyua? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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[quote=VituVingiSana]1) If Kinyua told Mwarania to arrange to replace Kemei, then why go after Mwarania and not Kinyua?-- Touching Kinyua is getting into the bad books of the president,he can't dare.2) If the replacement was to be done on 16th June 2017, during the AGM, then why weren't they (Kemei, Mukoma, Shakaba] replaced? [Didn't GoK vote for them?]-- Their term is coming to an end in 2018 not 2017.3) Don't the 3 [Kemei, Mukoma, Shakaba] have another 3-year term from 2017?-- [color=red]It's from 2018.The previous chairperson Nelly Kariuki retired in 2015 when Kemei's term started.https://www.nation.co.ke...9528-qsypxfz/index.html
4) Did Rotich out-manuever Kinyua?--I am not privy to information if Rotich was involved in this fiasco. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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