@ the deal - i fully agree with you peter muthoka was the right man. Let's see what effect this will have on the share price today.

@ mukiha - yes thats what i meant after their profits of 927.1 million in 2008 it has more than halved in the later years so the board room changes were to bring CMC back to those profit level of 2008.

Funky, Here, Mjoro seems to have been ahead of you in insider information. But your Andy Forwarders infor was sport on. They are now holding over 20% of CMC.

Vested interest has never been good commercially and socially except in Africa where we allow a Chairman of a vehicle selling company to be running a forwarding company that buys trucks from the same. It is called Conflict of interest, from whatever angle you look at it.

When it comes to the interests of minority share holders, Muthoka of course would act in his own interest first before considering others. Muthoka should go cabisa.

Supposing my C&F company lands the deal to clear CMC goods. Then from the profits I make out of it, I start buying CM shares on the stock market... then to further consolidate my gains, I decide to buy vehicle for my fleet from the same CMC...

Soon enough, I will have enough shares to warrant a seat in the board, after all, if the company fails, I stand to lose substantially...

Then I might have enough for two seats.... and eventually the Chairmanship....

Would you classify this as conflict of interest?

MR MUTHOKA COMMENTED - “I buy trucks worth hundreds of millions from CMC and it makes sense to get a dividend from that kind of business,” Mr Muthoka told the Business Daily in an earlier interview. Andy also handles the supply chain and local distribution networks for big Kenyan corporations like East African Breweries Limited, Safaricom, Coca-Cola, and General Motors.

The firm has direct operations in a number of countries in the region and has a global presence through its partnership with Hellman Global Logistics.

Mt Muthoka’s other business interests include a stake in Transglobal Cargo Centre – one of the largest fresh produce warehouses at the Jomo Kenyatta International Airport in Nairobi.

If a company is practicing good governance, it is Conflict of Interest "whichever angle you look at it"... Soon enough, he might start approving credit for his "trucks-buying" company exposing us to losses incase his company fails for (lets say)reasons beyond his control .... after all, "both" companies are his, right? Complete conflict of interest it does not matter if we are benefiting now or not......