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Rotich removes caps on foreign ownership in local firms
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Is this really a good idea? Kenya has removed the limitation on foreign ownership of local companies in a milestone step expected to attract new investments. National Treasury Cabinet Secretary Henry Rotich told investors yesterday that foreign ownership caps would only be retained in cases where the country has a strategic interest. In essence, the proposal allows foreigners to acquire the entire stakes of companies listed at the Nairobi Securities Exchange. Rotich's latest move effectively reverses a regulation proposed by one time finance minister Amos Kimunya who had capped foreign ownership of listed companies at 75%. (Source: The Standard) possunt quia posse videntur
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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Don't know if it's a good idea but it definitely presents a great opportunity to mint cash.
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Rank: Veteran Joined: 4/4/2007 Posts: 1,162
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whiteowl wrote:Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. by whom?
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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whiteowl wrote:Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. I think it is a sensible idea and will likely lead to increased FDI for the country, which is good. National ownership of companies, like having your flag on a national airline, is an expensive affectation that adds no real value, other than pride, and in many cases shuts out companies from the kind of talent, new ideas and technology that they need to grow and compete globally. As long as company X is creating good jobs, paying taxes and otherwise contributing to the national well being, its ownership should not be an issue. What about repatriation of profits, you ask? Well, what about it? "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Wakanyugi wrote:whiteowl wrote:Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. I think it is a sensible idea and will likely lead to increased FDI for the country, which is good. National ownership of companies, like having your flag on a national airline, is an expensive affectation that adds no real value, other than pride, and in many cases shuts out companies from the kind of talent, new ideas and technology that they need to grow and compete globally. As long as company X is creating good jobs, paying taxes and otherwise contributing to the national well being, its ownership should not be an issue. What about repatriation of profits, you ask? Well, what about it? In terms of trading what happens? possunt quia posse videntur
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Rank: New-farer Joined: 9/25/2014 Posts: 27
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Which listed companies would these be? From what I can make out:
1. BAT
2. CFC Stanbic
3. Total
4. BOC Kenya
5. Bamburi?
Please add any others I have missed.
Thanks
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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maka wrote:Wakanyugi wrote:whiteowl wrote:Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. I think it is a sensible idea and will likely lead to increased FDI for the country, which is good. National ownership of companies, like having your flag on a national airline, is an expensive affectation that adds no real value, other than pride, and in many cases shuts out companies from the kind of talent, new ideas and technology that they need to grow and compete globally. As long as company X is creating good jobs, paying taxes and otherwise contributing to the national well being, its ownership should not be an issue. What about repatriation of profits, you ask? Well, what about it? In terms of trading what happens? Please explain "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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majimaji wrote:whiteowl wrote:Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. by whom? Since there are no limits, that means greater volatility during entry and exit of the foreign cash.If you are on the right side of that volatility you can profit immensely. On the flipside the worth of your stocks can be wiped out.
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Rank: User Joined: 1/20/2014 Posts: 3,528
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biddii wrote:Which listed companies would these be? From what I can make out:
1. BAT
2. CFC Stanbic
3. Total
4. BOC Kenya
5. Bamburi?
6. EABL
7. Hizo ma Tea + coffee companies
Please add any others I have missed.
Thanks Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Othelo wrote:biddii wrote:Which listed companies would these be? From what I can make out:
1. BAT
2. CFC Stanbic
3. Total
4. BOC Kenya
5. Bamburi?
6. EABL
7. Hizo ma Tea + coffee companies
8. Pan africa insurance
Please add any others I have missed.
Thanks The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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whiteowl wrote:majimaji wrote:whiteowl wrote:Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. by whom? Since there are no limits, that means greater volatility during entry and exit of the foreign cash.If you are on the right side of that volatility you can profit immensely. On the flipside the worth of your stocks can be wiped out. Two things 1 when the foreigners sell their shares or get bonus or dividends they will take the money to invest in their own mother countries instead of investing back here to create more opportunities for mwananchi 2 by disposing off shares in large quantities ( since they buy big big quantites )expect the price of shares to go down real quick because of supply demand thing .so that's very -ve . 3 by disposing large they will need to purchase lot's of dollars at once putting pressure on the supply demand thing on the dollar rate pushing the rate up like what's going on right now 1$ →100 ksh . For govt they benefit for liquidity and availability of funds and that new tax thing rotich brought on budget but for us we will just be like a Pebble floating in an ocean. Tossed around since we have no power. It's a bad bad thing ...just saying
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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enyands wrote:whiteowl wrote:majimaji wrote:[quote=whiteowl]Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. by whom? Since there are no limits, that means greater volatility during entry and exit of the foreign cash.If you are on the right side of that volatility you can profit immensely. On the flipside the worth of your stocks can be wiped out. Two things 1 when the foreigners sell their shares or get bonus or dividends they will take the money to invest in their own mother countries instead of investing back here to create more opportunities for mwananchi Investors foreign or local are in it for the money and money has no allegiance. . If those investments can or are structured in a way that benefits the locals, well and good.
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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enyands wrote:whiteowl wrote:majimaji wrote:whiteowl wrote:Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. by whom? Since there are no limits, that means greater volatility during entry and exit of the foreign cash.If you are on the right side of that volatility you can profit immensely. On the flipside the worth of your stocks can be wiped out. Two things 1 when the foreigners sell their shares or get bonus or dividends they will take the money to invest in their own mother countries instead of investing back here to create more opportunities for mwananchi 2 by disposing off shares in large quantities ( since they buy big big quantites )expect the price of shares to go down real quick because of supply demand thing .so that's very -ve . 3 by disposing large they will need to purchase lot's of dollars at once putting pressure on the supply demand thing on the dollar rate pushing the rate up like what's going on right now 1$ →100 ksh . For govt they benefit for liquidity and availability of funds and that new tax thing rotich brought on budget but for us we will just be like a Pebble floating in an ocean. Tossed around since we have no power. It's a bad bad thing ...just saying Those are actually three things (I know how to count). The problems you cite are fairly short term IMHO. Over the long term increasing FDI is good for the Economy. Over the short term Kenya has used up it its foreign borrowing limit. What else do you want Rotich to do? "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Chief Joined: 1/3/2007 Posts: 18,099 Location: Nairobi
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enyands wrote:whiteowl wrote:majimaji wrote:whiteowl wrote:Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. by whom? Since there are no limits, that means greater volatility during entry and exit of the foreign cash.If you are on the right side of that volatility you can profit immensely. On the flipside the worth of your stocks can be wiped out. Two things 1 when the foreigners sell their shares or get bonus or dividends they will take the money to invest in their own mother countries instead of investing back here to create more opportunities for mwananchi 2 by disposing off shares in large quantities ( since they buy big big quantites )expect the price of shares to go down real quick because of supply demand thing .so that's very -ve . 3 by disposing large they will need to purchase lot's of dollars at once putting pressure on the supply demand thing on the dollar rate pushing the rate up like what's going on right now 1$ →100 ksh . For govt they benefit for liquidity and availability of funds and that new tax thing rotich brought on budget but for us we will just be like a Pebble floating in an ocean. Tossed around since we have no power. It's a bad bad thing ...just saying 1) Well, they invested with money that came from OUTSIDE Kenya so why can't they take it out? You do the same in Uganda & Rwanda. There are always opportunities for Wananchi. If the Ugandans & Rwandans thought like you then Kenyans would not invest there. Look at the minimal Kenyan investment in TZ. 2) Well, when they buy in large quantities the price goes up too. Prime yourself for the ups & guard against the downs. If they are selling & the price drops, why don't you buy? 3) Well, perhaps they will buy Euros or Yen or Yuan or Rupees or Rands. The KES is dropping for various reasons including GoK spending like Greece. Why weren't you complaining when they came in with USD & exchanged into KES? If you feel like a pebble in the ocean then stay below the wave. The frothiness & wave action on the surface of the ocean often belies the calmer bottom. Perhaps, the NSE is not for you. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Wakanyugi wrote:enyands wrote:whiteowl wrote:majimaji wrote:whiteowl wrote:Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. by whom? Since there are no limits, that means greater volatility during entry and exit of the foreign cash.If you are on the right side of that volatility you can profit immensely. On the flipside the worth of your stocks can be wiped out. Two things 1 when the foreigners sell their shares or get bonus or dividends they will take the money to invest in their own mother countries instead of investing back here to create more opportunities for mwananchi 2 by disposing off shares in large quantities ( since they buy big big quantites )expect the price of shares to go down real quick because of supply demand thing .so that's very -ve . 3 by disposing large they will need to purchase lot's of dollars at once putting pressure on the supply demand thing on the dollar rate pushing the rate up like what's going on right now 1$ →100 ksh . For govt they benefit for liquidity and availability of funds and that new tax thing rotich brought on budget but for us we will just be like a Pebble floating in an ocean. Tossed around since we have no power. It's a bad bad thing ...just saying Those are actually three things (I know how to count). The problems you cite are fairly short term IMHO. Over the long term increasing FDI is good for the Economy. Over the short term Kenya has used up it its foreign borrowing limit. What else do you want Rotich to do? he shoul be creative. Just like imposing CGT on stocks had negative effect . He came up with the other source of tax inform of transaction fee. But the point you are missing here is what people call "kicking the can down the road" all someone wwants is how best can I survive this Short term I have with the current regime. What people forget is the long term effect such decisions have long after they are gone . It's good you raised a point that hehas run out of option , then do you choke the rooster because it can't lay eggs ..point is thereare better ways to eencourage faithful wanjiku who can stick around
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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enyands wrote:Wakanyugi wrote:enyands wrote:whiteowl wrote:majimaji wrote:whiteowl wrote:Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. by whom? Since there are no limits, that means greater volatility during entry and exit of the foreign cash.If you are on the right side of that volatility you can profit immensely. On the flipside the worth of your stocks can be wiped out. Two things 1 when the foreigners sell their shares or get bonus or dividends they will take the money to invest in their own mother countries instead of investing back here to create more opportunities for mwananchi 2 by disposing off shares in large quantities ( since they buy big big quantites )expect the price of shares to go down real quick because of supply demand thing .so that's very -ve . 3 by disposing large they will need to purchase lot's of dollars at once putting pressure on the supply demand thing on the dollar rate pushing the rate up like what's going on right now 1$ →100 ksh . For govt they benefit for liquidity and availability of funds and that new tax thing rotich brought on budget but for us we will just be like a Pebble floating in an ocean. Tossed around since we have no power. It's a bad bad thing ...just saying Those are actually three things (I know how to count). The problems you cite are fairly short term IMHO. Over the long term increasing FDI is good for the Economy. Over the short term Kenya has used up it its foreign borrowing limit. What else do you want Rotich to do? he shoul be creative. Just like imposing CGT on stocks had negative effect . He came up with the other source of tax inform of transaction fee. But the point you are missing here is what people call "kicking the can down the road" all someone wwants is how best can I survive this Short term I have with the current regime. What people forget is the long term effect such decisions have long after they are gone . It's good you raised a point that hehas run out of option , then do you choke the rooster because it can't lay eggs ..point is thereare better ways to eencourage faithful wanjiku who can stick around Foreign loans when not spent well will result to bigger problems later hence the phrase kicking the can down the road. FDI on the other hand is beneficial especially in the long term. Here Rotich has offered a solution to attracting FDI
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Wakanyugi wrote:enyands wrote:whiteowl wrote:majimaji wrote:whiteowl wrote:Don't know if it's a good idea but it definitely presents a great opportunity to mint cash. by whom? Since there are no limits, that means greater volatility during entry and exit of the foreign cash.If you are on the right side of that volatility you can profit immensely. On the flipside the worth of your stocks can be wiped out. Two things 1 when the foreigners sell their shares or get bonus or dividends they will take the money to invest in their own mother countries instead of investing back here to create more opportunities for mwananchi 2 by disposing off shares in large quantities ( since they buy big big quantites )expect the price of shares to go down real quick because of supply demand thing .so that's very -ve . 3 by disposing large they will need to purchase lot's of dollars at once putting pressure on the supply demand thing on the dollar rate pushing the rate up like what's going on right now 1$ →100 ksh . For govt they benefit for liquidity and availability of funds and that new tax thing rotich brought on budget but for us we will just be like a Pebble floating in an ocean. Tossed around since we have no power. It's a bad bad thing ...just saying Those are actually three things (I know how to count). The problems you cite are fairly short term IMHO. Over the long term increasing FDI is good for the Economy. Over the short term Kenya has used up it its foreign borrowing limit. What else do you want Rotich to do? There is mining going on in the country , it will be wrong to tell those big mining companies not to include local ownership .that's the same problem Nigeria is having now . They have a lot of oil but sometimes it breaks my heart to see that in some pump station there is no gas and people have to line ... reason being that the big SHELL COMPANIES ARE 98% OWNED BY FOREIGNERS the remaining 2% owned by abacha and babaginda kins. I don't think we need this in Kenya 
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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75% cap was a very good idea. Let Kenyans own 25% of the company even if it is by "force". We cannot have 100% foreign owned company running the economy. Foreigners can always pack and go if it suits them. Kenyans not so much (of course a few do). For Kenyans it is more than money! That is why you can tell the pride in posts by Kenyans when they post about a company they own shares in. It is not just about dividends and Capital gains. When they discuss shares they own in other countries, you can tell the pride is not there. it is just about the bottom line. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 5/14/2014 Posts: 288 Location: nairobi
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kibaki. will be remembered as the best president. kenya has had.i dont trust this jubilee government to run the economy in a mature way. explotation by foreigners will finish wanjiku I find satisfaction in owning great business,not trading them
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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Aguytrying wrote:Othelo wrote:biddii wrote:Which listed companies would these be? From what I can make out:
1. BAT
2. CFC Stanbic
3. Total
4. BOC Kenya
5. Bamburi?
6. EABL
7. Hizo ma Tea + coffee companies
8. Pan africa insurance
Please add any others I have missed.
Thanks A sad day indeed. We'll be squatters sitting duck in our own country. Mbut the least we can do s position ourselves to make a mbuck. Wherein above, lies the question?
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