THE STAR Monday, November 19, 2012 LOCAL 37 business · BY JUSTUS OCHIENG IMMIGRATION minister...
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BY JUSTUS OCHIENG IMMIGRATION minister Otieno Kajwang’ has peti- tioned President Kibaki to direct the Treasury to release stimulant funds to rescue the airline Jetlink Express. Operations at the local airline have been grounded for lack of cash blamed on failure to convert into dol- lars revenue from its ticket sales in South Sudan. Managing director Cap- tain Elly Aluvale last week said the airline is unable to access more than Sh170 million ($2 million) held in Equity Bank and Kenya Commercial Bank accounts in Juba. Subsequently, its 350 staff have been sent home pend- ing further communication. The airline heavily depends on foreign exchange to buy fuel, aircraft lease rentals, importation of spare parts and landing fee. Kajwang’ said the cash ow crunch that has hit the company is likely to affect the country’s revenue. The minister who was speaking in Kisumu on Sat- urday said that a swift move by the head of state will save the company. “Treasury under the direc- tive of the President has of- fered aid to Kenya Co-oper- ative Creameries, coffee and pyrethrum industries and it will not cost the country much to come to the aid of Jetlink,” the minister said. He said just like Kenya Airways has received state assistance in the past, Sh1 billion from the Treasury can save the Jetlink. “The Sh1 billion can be given as a loan to the com- pany to enable it continue its operations since when one business venture col- lapses, Kenyans lose several jobs and families suffer,” Ka- jwang’ said. The airline said with for- eign exchange shortage in South Sudan, banks are un- der instruction from the gov- ernment to give priority to essential services like food, medicine and fuel imports in their foreign exchange al- location. The currency shortage arises from the stand-off between Sudan and South Sudan over oil export tran- sit fees forcing the South to stop rening its oil in Khar- toum. Equity Bank Kenya has reportedly been advancing them dollar payments based on Jetlink’s deposits in Eq- uity South Sudan pending resumption of normal for- eign exchange trade in South Sudan. Jetlink, which has operat- ed for over four years, runs scheduled domestic ights to Kisumu, Mombasa, and El- doret and regionally to Juba and Mwanza with a strate- gic plan to spread its wings to Zanzibar and Dar-es-Sa- laam in Tanzania, Kigali in Rwanda, Asmara in Eritrea and Khartoum in Sudan. It has a jet eet of eight aircrafts including seven CRJ aircrafts (50-seater) and one Fokker-28 aircraft (79-seater). THE STAR Monday, November 19, 2012 LOCAL 37 BY SOLOMON KIRIMI RENAISSANCE Group has split its asset management unit from investment bank- ing arm. The group separated its operations from its invest- ment banking division following an announcement by Renaissance Group and Onexim Group of the sale of Renaissance Capital and Renaissance Credit in Rus- sia, to Onexim. The separation of the business units under the Renaissance Group umbrel- la leaves the Renaissance Group to focus on asset management, African urban developments, consumer - nance in Africa, and Russian real estate funds. Chief executive Stephen Jennings will remains at the helm of the rm, which now comprises Renaissance Asset Managers, and Asset Management Company. Others include Rendeav- our engaged in develop- ment in develop African cities, Renaissance Credit Nigeria, consumer nance and Renaissance Real Estate in Russia. Renaissance capital is involved in development of Tatu city in the outskirts of Nairobi. Onexim Group and Ren- aissance Group announced last week that an agree- ment had been reached for Onexim Group to buy Ren- aissance Group’s stakes in Renaissance Capital Invest- ments, Renaissance Capital, and Renaissance Capital International Services for an undisclosed amount. Renaissance Group splits key units ★ business UP TO DATE, ACCURATE BUSINESS INFORMATION NEWS YOU CAN USE, EVERY DAY Minister calls for Sh1bn state rescue for Jetlink Can YOU outsmart the expert? ALY KHAN’S STAR PORTFOLIO WHEN I was young and the heat was at its most intense in the afternoon in Mombasa and only the sound of crows would occasionally pierce that heavy hot stillness and my mother was having her siesta, I would read and I consumed books because they were my lifeline to the world. Today, the world is flat and my laptop [nicknamed my ‘lovetop’ by my better half] connects me but then it was a different time, a world when we were all disconnected. The one author I always wrestled with was James Joyce whom I later learnt was the inventor of the ‘stream of conciousness’ style of storytelling and my piece today might be characterised as a little James Joycean, I admit. I start with Nassim Taleb who has written a number of very prescient books. Taleb is the author of The Black Swan [fooled by randomness] which caught the atten- tion of folks who live and breathe the financial markets. “What we call here a Black Swan is an event that is an outlier, as it lies outside the realm of regular expecta- tions, because nothing in the past can convincingly point to its possibility and it carries an extreme ‘impact’.’’ And I refer to the randomness of the fact that 41 people have died in the Gaza Strip and 48 police officers were killed in Baragoi, Samburu. Let’s set aside for a moment the share of voice that the events in the Gaza Strip are receiving which simply dwarfs the share of voice the massacre in the Samburu received by comparison. I pray that the souls of all the departed [and I include the three Israelis as well as the police officers as well as those in the Gaza Strip] rest in eternal peace. I am left wondering what on earth is going on? When did we start ranking worse than the Gaza Strip? Are these spikes and paroxysms of violence Black Swan events or are we entering a new normal? Everything starts with security and without it, we are in very deep trouble and these spikes have been increasing in frequency, in intensity and spreading geographically. The Swahili coast remains a potential tin- derbox and the Rift Valley is hardly a demilitarised zone. Somehow, the genie was put back in its bottle in 2008 but when you keep stepping close to the precipice, there is a high chance that you misjudge distance and you fall over the edge. Can the system regain control? Will lashings of blunt force trauma be enough? What happens if it all kicks off all at once and to- gether? Is the system responding with enough sophistication? Or do we only have one tool in the tool box? BARAGOI: BLACK SWAN OR NEW NORMAL? GROUNDED: Jetlink Express said on Thursday it has suspended operations for lack of cash flow. Everything starts with security and without it, we are in very deep trouble and these spikes have been increasing in frequency, in intensity and spreading geographically
Transcript of THE STAR Monday, November 19, 2012 LOCAL 37 business · BY JUSTUS OCHIENG IMMIGRATION minister...
BY JUSTUS OCHIENG
IMMIGRATION minister Otieno Kajwang’ has peti-tioned President Kibaki to direct the Treasury to release stimulant funds to rescue the airline Jetlink Express.
Operations at the local airline have been grounded for lack of cash blamed on failure to convert into dol-lars revenue from its ticket sales in South Sudan.
Managing director Cap-tain Elly Aluvale last week said the airline is unable to access more than Sh170 million ($2 million) held in Equity Bank and Kenya Commercial Bank accounts in Juba.
Subsequently, its 350 staff have been sent home pend-ing further communication.
The airline heavily depends on foreign exchange to buy fuel, aircraft lease rentals, importation of spare parts and landing fee.
Kajwang’ said the cash !ow crunch that has hit the company is likely to affect the country’s revenue.
The minister who was speaking in Kisumu on Sat-urday said that a swift move by the head of state will save the company.
“Treasury under the direc-tive of the President has of-fered aid to Kenya Co-oper-ative Creameries, coffee and pyrethrum industries and it will not cost the country much to come to the aid of Jetlink,” the minister said.
He said just like Kenya Airways has received state assistance in the past, Sh1
billion from the Treasury can save the Jetlink.
“The Sh1 billion can be given as a loan to the com-pany to enable it continue its operations since when one business venture col-lapses, Kenyans lose several jobs and families suffer,” Ka-jwang’ said.
The airline said with for-eign exchange shortage in South Sudan, banks are un-der instruction from the gov-ernment to give priority to essential services like food, medicine and fuel imports in their foreign exchange al-location.
The currency shortage arises from the stand-off between Sudan and South Sudan over oil export tran-sit fees forcing the South to stop re"ning its oil in Khar-
toum.Equity Bank Kenya has
reportedly been advancing them dollar payments based on Jetlink’s deposits in Eq-uity South Sudan pending resumption of normal for-eign exchange trade in South Sudan.
Jetlink, which has operat-ed for over four years, runs scheduled domestic !ights to Kisumu, Mombasa, and El-doret and regionally to Juba and Mwanza with a strate-gic plan to spread its wings to Zanzibar and Dar-es-Sa-laam in Tanzania, Kigali in Rwanda, Asmara in Eritrea and Khartoum in Sudan.
It has a jet !eet of eight aircrafts including seven CRJ aircrafts (50-seater) and one Fokker-28 aircraft (79-seater).
THE STAR Monday, November 19, 2012 LOCAL 37
BY SOLOMON KIRIMI
RENAISSANCE Group has split its asset management unit from investment bank-ing arm.
The group separated its operations from its invest-ment banking division following an announcement by Renaissance Group and Onexim Group of the sale of Renaissance Capital and
Renaissance Credit in Rus-sia, to Onexim.
The separation of the business units under the Renaissance Group umbrel-la leaves the Renaissance Group to focus on asset management, African urban developments, consumer "-nance in Africa, and Russian real estate funds.
Chief executive Stephen Jennings will remains at
the helm of the "rm, which now comprises Renaissance Asset Managers, and Asset Management Company.
Others include Rendeav-our engaged in develop-ment in develop African cities, Renaissance Credit Nigeria, consumer "nance and Renaissance Real Estate in Russia.
Renaissance capital is involved in development of
Tatu city in the outskirts of Nairobi.
Onexim Group and Ren-aissance Group announced last week that an agree-ment had been reached for Onexim Group to buy Ren-aissance Group’s stakes in Renaissance Capital Invest-ments, Renaissance Capital, and Renaissance Capital International Services for an undisclosed amount.
Renaissance Group splits key units
★business UP TO DATE, ACCURATE BUSINESS INFORMATIONNEWS YOU CAN USE, EVERY DAY
Minister calls for Sh1bn state rescue for Jetlink
Can YOU outsmart the expert?
ALY KHAN’S STAR
PORTFOLIO
WHEN I was young and the heat was at its most intense in the afternoon in Mombasa and only the sound of crows would occasionally pierce that heavy hot stillness and my mother was having her siesta, I would read and I consumed books because they were my lifeline to the world.
Today, the world is flat and my laptop [nicknamed my ‘lovetop’ by my better half] connects me but then it was a different time, a world when we were all disconnected.
The one author I always wrestled with was James Joyce whom I later learnt was the inventor of the ‘stream of conciousness’ style of storytelling and my piece today might be characterised as a little James Joycean, I admit.
I start with Nassim Taleb who has written a number of very prescient books. Taleb is the author of The Black Swan [fooled by randomness] which caught the atten-tion of folks who live and breathe the financial markets.
“What we call here a Black Swan is an event that is an outlier, as it lies outside the realm of regular expecta-tions, because nothing in the past can convincingly point to its possibility and it carries an extreme ‘impact’.’’
And I refer to the randomness of the fact that 41 people have died in the Gaza Strip and 48 police officers were killed in Baragoi, Samburu.
Let’s set aside for a moment the share of voice that the events in the Gaza Strip are receiving which simply dwarfs the share of voice the massacre in the Samburu received by comparison. I pray that the souls of all the departed [and I include the three Israelis as well as the police officers as well as those in the Gaza Strip] rest in eternal peace.
I am left wondering what on earth is going on?When did we start ranking worse than the Gaza Strip?Are these spikes and paroxysms of violence Black
Swan events or are we entering a new normal?Everything starts with security and without it, we
are in very deep trouble and these spikes have been increasing in frequency, in intensity and spreading geographically. The Swahili coast remains a potential tin-derbox and the Rift Valley is hardly a demilitarised zone. Somehow, the genie was put back in its bottle in 2008 but when you keep stepping close to the precipice, there is a high chance that you misjudge distance and you fall over the edge.
Can the system regain control?Will lashings of blunt force trauma be enough?What happens if it all kicks off all at once and to-
gether?Is the system responding with enough sophistication?
Or do we only have one tool in the tool box?
BARAGOI: BLACK SWAN OR NEW NORMAL?
GROUNDED: Jetlink Express said on Thursday it has suspended operations for lack of cash flow.
Everything starts with security and without it, we are in
very deep trouble and these spikes have been increasing in frequency, in intensity and
spreading geographically
