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KenyaRe FY19 - FY23 (Both Inclusive)
Rank: Veteran Joined: 4/4/2016 Posts: 1,917 Location: Kitale
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Kenya Reinsurance has put a tender for sale of Reinsurance Plaza Kisumu. Reserve price Ksh.1 billion  Sell and pay a dividend  Are there buyers at that price in this market? The rich Indians from Kisumu or government though the process may take time to conclude. Part of the proceeds may also be used to put up their new commercial building (twin towers) in Upper Hill There are many rich Luos who can buy it. Using the proceeds to build a new commercial building in Upper Hill, in the near future, would be STUPID and CRIMINAL. The proceeds should be invested in the stock market if the prices remain low. The best is to pay out a dividend. Next best is a share buyback. https://www.businessdail...insurance-plaza-3299332
@vvs. There you have it; ""The reason (for sale) is strategic reinvestment," Kenya Re chief executive Jadiah Mwaraniah said in response to the Business Daily queries without divulging further details." They will not use the proceeds to payout a dividend and highly unlikely stocks. The main shareholder(GOK) with 60%,is in distress of cash for referendum,budget 2021/2022 and general election 2022.They could be pushing to get this cash. They pushed safaricom to declare an interim dividend. https://www.businessdail...rastatals-money-3296618
Towards the goal of financial freedom
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Rank: Elder Joined: 12/4/2009 Posts: 9,404 Location: NAIROBI
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Ebenyo wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Kenya Reinsurance has put a tender for sale of Reinsurance Plaza Kisumu. Reserve price Ksh.1 billion  Sell and pay a dividend  Are there buyers at that price in this market? The rich Indians from Kisumu or government though the process may take time to conclude. Part of the proceeds may also be used to put up their new commercial building (twin towers) in Upper Hill There are many rich Luos who can buy it. Using the proceeds to build a new commercial building in Upper Hill, in the near future, would be STUPID and CRIMINAL. The proceeds should be invested in the stock market if the prices remain low. The best is to pay out a dividend. Next best is a share buyback. https://www.businessdail...insurance-plaza-3299332
@vvs. There you have it; ""The reason (for sale) is strategic reinvestment," Kenya Re chief executive Jadiah Mwaraniah said in response to the Business Daily queries without divulging further details." They will not use the proceeds to payout a dividend and highly unlikely stocks. The main shareholder(GOK) with 60%,is in distress of cash for referendum,budget 2021/2022 and general election 2022.They could be pushing to get this cash. They pushed safaricom to declare an interim dividend. https://www.businessdail...rastatals-money-3296618
Can't rely on this since they ain't sure they will get a buyer. Safaricom is a different case since it doesn't have financial regulatory compliances Wealth is built through a relatively simple equation Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 17,416 Location: Nairobi
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Ericsson wrote:Ebenyo wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Kenya Reinsurance has put a tender for sale of Reinsurance Plaza Kisumu. Reserve price Ksh.1 billion  Sell and pay a dividend  Are there buyers at that price in this market? The rich Indians from Kisumu or government though the process may take time to conclude. Part of the proceeds may also be used to put up their new commercial building (twin towers) in Upper Hill There are many rich Luos who can buy it. Using the proceeds to build a new commercial building in Upper Hill, in the near future, would be STUPID and CRIMINAL. The proceeds should be invested in the stock market if the prices remain low. The best is to pay out a dividend. Next best is a share buyback. https://www.businessdail...insurance-plaza-3299332
@vvs. There you have it; ""The reason (for sale) is strategic reinvestment," Kenya Re chief executive Jadiah Mwaraniah said in response to the Business Daily queries without divulging further details." They will not use the proceeds to payout a dividend and highly unlikely stocks. The main shareholder(GOK) with 60%,is in distress of cash for referendum,budget 2021/2022 and general election 2022.They could be pushing to get this cash. They pushed safaricom to declare an interim dividend. https://www.businessdail...rastatals-money-3296618
Can't rely on this since they ain't sure they will get a buyer. Safaricom is a different case since it doesn't have financial regulatory compliances Kenya Re is over-capitalized for the size of its business. It is earning low returns on its cash (deposits, T-Bills). The sale of the property is a matter for 2021. The dividend is for FY2020. BUT the IRA can block a dividend. 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: 9,404 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:Ebenyo wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Kenya Reinsurance has put a tender for sale of Reinsurance Plaza Kisumu. Reserve price Ksh.1 billion  Sell and pay a dividend  Are there buyers at that price in this market? The rich Indians from Kisumu or government though the process may take time to conclude. Part of the proceeds may also be used to put up their new commercial building (twin towers) in Upper Hill There are many rich Luos who can buy it. Using the proceeds to build a new commercial building in Upper Hill, in the near future, would be STUPID and CRIMINAL. The proceeds should be invested in the stock market if the prices remain low. The best is to pay out a dividend. Next best is a share buyback. https://www.businessdail...insurance-plaza-3299332
@vvs. There you have it; ""The reason (for sale) is strategic reinvestment," Kenya Re chief executive Jadiah Mwaraniah said in response to the Business Daily queries without divulging further details." They will not use the proceeds to payout a dividend and highly unlikely stocks. The main shareholder(GOK) with 60%,is in distress of cash for referendum,budget 2021/2022 and general election 2022.They could be pushing to get this cash. They pushed safaricom to declare an interim dividend. https://www.businessdail...rastatals-money-3296618
Can't rely on this since they ain't sure they will get a buyer. Safaricom is a different case since it doesn't have financial regulatory compliances Kenya Re is over-capitalized for the size of its business. It is earning low returns on its cash (deposits, T-Bills). The sale of the property is a matter for 2021. The dividend is for FY2020. BUT the IRA can block a dividend. Proceeds is for strategic reinvestment meaning. What is this strategic investment they want to pursue that they can't use the available cash? Is is acquisition of a stake in a reinsurer? Wealth is built through a relatively simple equation Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 9,404 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:Ebenyo wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Kenya Reinsurance has put a tender for sale of Reinsurance Plaza Kisumu. Reserve price Ksh.1 billion  Sell and pay a dividend  Are there buyers at that price in this market? The rich Indians from Kisumu or government though the process may take time to conclude. Part of the proceeds may also be used to put up their new commercial building (twin towers) in Upper Hill There are many rich Luos who can buy it. Using the proceeds to build a new commercial building in Upper Hill, in the near future, would be STUPID and CRIMINAL. The proceeds should be invested in the stock market if the prices remain low. The best is to pay out a dividend. Next best is a share buyback. https://www.businessdail...insurance-plaza-3299332
@vvs. There you have it; ""The reason (for sale) is strategic reinvestment," Kenya Re chief executive Jadiah Mwaraniah said in response to the Business Daily queries without divulging further details." They will not use the proceeds to payout a dividend and highly unlikely stocks. The main shareholder(GOK) with 60%,is in distress of cash for referendum,budget 2021/2022 and general election 2022.They could be pushing to get this cash. They pushed safaricom to declare an interim dividend. https://www.businessdail...rastatals-money-3296618
Can't rely on this since they ain't sure they will get a buyer. Safaricom is a different case since it doesn't have financial regulatory compliances Kenya Re is over-capitalized for the size of its business. It is earning low returns on its cash (deposits, T-Bills). The sale of the property is a matter for 2021. The dividend is for FY2020. BUT the IRA can block a dividend. Properties investment is 31% of their total assets. This is above the 30% limit. Wealth is built through a relatively simple equation Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 12/24/2008 Posts: 90
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Would prefer that they paid a better dividend for 2020 rather than spending loads of money advertising 50 years in business on billboards around town as if they are manufacturers of some soap or cooking oil or some other FMCG! After all, when does the public walk into their offices to purchase re-insurance?
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Rank: Chief Joined: 1/3/2007 Posts: 17,416 Location: Nairobi
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Rank: Elder Joined: 12/4/2009 Posts: 9,404 Location: NAIROBI
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Amekasirika yake yote Wealth is built through a relatively simple equation Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 17,416 Location: Nairobi
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Ericsson wrote: Amekasirika yake yote I support @ElephantMan 100%. Pay more in dividends. Or use the "billboard advertising" to reach out and support its clients/staff/brokers. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 8/10/2014 Posts: 863 Location: Kenya
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Rank: Member Joined: 12/24/2008 Posts: 90
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For a re-insurance company that has enjoyed the benefit of compulsory cessions from Gava (i.e. the taxpayer) since its inception, minority shareholders have very little to show other than tiny dividends and the odd bonus here or there (cutting my cake into smaller pieces, then trying to cheat me by saying that I now have more pieces of cake - nkt)!
Advertising on billboards is a pure 'procurement play' - no perceived benefit to Kenya-Re or its shareholders - benefit is to whichever billboard company that they are using. Board and MD are not in the know? Question of competence, if not integrity.
Their CSR (Niko fiti) is towards persons with physical disability. I have no quarrel with that - in fact I fully support it. I just need them to know that right now many of their shareholders are financially disabled!
The share price for this company has underperformed (on a PE basis) it's peers in the industry as well as the market as a whole for many years! So what is there to celebrate about being in business for 50 years?
GoK is suffering without money at the moment so this is the right time that Gava either divests from it or gives it out to 'professional' managers to run, given the paucity of returns from the current bunch at the trough.
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Rank: Chief Joined: 1/3/2007 Posts: 17,416 Location: Nairobi
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Elephant Man wrote:For a re-insurance company that has enjoyed the benefit of compulsory cessions from Gava (i.e. the taxpayer) since its inception, minority shareholders have very little to show other than tiny dividends and the odd bonus here or there (cutting my cake into smaller pieces, then trying to cheat me by saying that I now have more pieces of cake - nkt)!
Advertising on billboards is a pure 'procurement play' - no perceived benefit to Kenya-Re or its shareholders - benefit is to whichever billboard company that they are using. Board and MD are not in the know? Question of competence, if not integrity.
Their CSR (Niko fiti) is towards persons with physical disability. I have no quarrel with that - in fact I fully support it. I just need them to know that right now many of their shareholders are financially disabled!
The share price for this company has underperformed (on a PE basis) it's peers in the industry as well as the market as a whole for many years! So what is there to celebrate about being in business for 50 years?
GoK is suffering without money at the moment so this is the right time that Gava either divests from it or gives it out to 'professional' managers to run, given the paucity of returns from the current bunch at the trough.  Someone needs to send this to the board! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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