Friday, April 20, 2007

Chilling video of Cho Seung-hui Virginia Tech killer


This is the Virginia Tech killer, 23 year old Cho Seung-hui.





And the following link is the chilling home video of Virginia Tech gunman Cho Seung-Hui showing just how deranged he was. Our condolences to the families of the victims of the VA Tech Massacre.

VIDEO

Tuesday, April 17, 2007

Multiple fatal shooting at Virginia Tech University could have been prevented - lesson for Kenyan Universities






This morning, we woke up to see live pictures on CNN of a multiple fatal shooting incident at Virginia Tech University in the United States. At last count 32 dead, scores injured.

Virginia Tech officials and police have already come under fire for not placing the campus on complete lockdown immediately after the first, early-morning shooting. The second spree, during which the bulk of the victims were killed, took place about two hours later — and many students were unaware of the first incident or of any danger on campus at all.

The university has said it believed the first crime was an isolated, domestic case, may not have been related to the second shooting and was under control — even though police and administrators have admitted they didn't have the gunman in custody.

Though there are limits as to what schools can do to prevent such crimes and heighten security — public universities and colleges in this particular State, for example, aren't allowed to have gated access to campus, because they're public — there are safety measures schools can and do take.

Among them: Controlled access to residence buildings in the form of student ID swiping machines; guards at academic and dormitory buildings; a strong campus police and security presence; active-shooter training for officers and guards; metal detectors and bag searches at athletic and other events that attract crowds; security cameras; trained student guard forces; and education about safety procedures for students, faculty and staff.

All of those policies are in effect at Rutgers University in New Brunswick, a large suburban campus with more than 34,000 students (50,000 total at the school's three main locations), and at UCLA, an urban state school with a total of 37,000 students (more than 10,000 of whom are residents of the university).

What kinds of security measures, if any, do our Kenyan Universities have in place?

It is time its management opened their eyes, ears and minds as to possibilities.

This blog has already given fair warning about the feeble security at the University of Nairobi's main campus. http://ncrwcc.blogspot.com/2007/04/suspicious-night-time-photographer-at.html

Whereas gun laws in this country are stricter, it has been previously said that illegal firearms are easily available in this country, coming in through the porous borders of some of our unstable neighbours like Somalia.

Kenyan Universities should spend more resources on professional security arrangements for its students, lecturers and guests. I do not recall having ever seen even a single CCTV Camera at the University of Nairobi. It should not be heard to say that it does not have sufficient resources because it is a public university. No excuse should stand in the way of protection of precious human lives.














Sunday, April 15, 2007

Shame on thieving waiters at the Safari Park Hotel


Yesterday was a joyous occasion when a colleague got married at the Safari Park Hotel.

Everything ran like clockwork at the reception ...the meal was served buffet style...and we all had a soft drink with the meal.

The hall where the reception was held was not entirely full..some guests had not shown up.

Meanwhile, as the entertainment wore on, I figured I could do with a second soft drink, so I strode over to a waiter (my previous attempts to catch the attention of any waiter had not been successful) and requested to have a soda brought to my table.

After a further ten minutes had elapsed without my soda having arrived, I strode again, more determined, to the said waiter and demanded to know why my soda had not arrived.

He managed to tell me in a number of phrases, that the sodas that had remained were to be paid for cash, at Kenya Shillings 200 each.

I thought this was a ridiculously high price, but without saying so, I asked the waiter to bring me the soda quickly, he should not assume I was not good for the money.

In less than a minute, a cold soda was placed before me, opened with gusto, and the waiter then hung about expectantly, waiting for me to give him the Kenya shillings 200 he had previously indicated to me.

Having taken a long gulp of the soda, I turned to the waiter and asked him to bring me the bill, so that I could pay for the soda.

Five, Ten, Fifteen, Twenty and finally Thirty minutes elapsed, before the waiter came to my table with the Manager.

The Manager explained to me that whereas each guest had only been entitled to a single soda, the fact that some guests had not arrived meant that there were still sodas available, all fully paid for, and there was therefore no bill for me to pay.

The manager even asked if I wished to have another soda, but i thanked him, saying I was quenched of thirst.

I was, needless to say, furious at the waiter, who had attempted to steal KES 200 from me, knowing fully well that there were many free sodas still available, and knowing further that a soda at the hotel was only KES 100 bob.

Indeed, I later came to learn from other guests, that they had been made to pay KES 100 each for a second soda, without a receipt having been issued.

The lesson for customers of this hotel is simply never to pay for anything without an appropriate bill having been tendered. Its waiters, as at yesterday, were less than honest.

This was most unexpected of an otherwise highly regarded Safari Park Hotel, and it is hoped that its management will implement suitable mechanisms and procedures to avoid theft of funds from its guests by its waiters.

Thursday, April 12, 2007

Suspicious night-time photographer at the University of Nairobi is a security risk



This blog is written with the hope that The Vice Chancellor of the University of Nairobi Prof. George A.O. Magoha, or any officer at the University, will read it and take note.

A couple of nights ago, we received an observation from one of the evening Masters students at the University of Nairobi that a young man of Somali features had been spotted taking photographs of the wall at Willoughby Hall opposite the cafeteria in Gandhi Wing.

Whereas this particular person may have simply been capturing some of the magnificent architecture of the University for posterity, the fact that these photographs were being taken at 8:30pm by a suspicious looking person deserves some attention.

The walls being photographed are directly above Taifa hall, and concerns were raised that this would be a prime target for someone with less than honourable intentions, particularly because evening students will be using Taifa hall soon for examinations.

There do not appear to be any security guards patrolling the University at all times...they seemed to be concentrated at the gates.

Call it a long shot, but Kenya has previously been a terrorism target in years gone by.

Can proper anti-terrorism preventive structures be implemented at the University of Nairobi's main campus at the earliest opportunity?

Monday, April 09, 2007

John Michuki's mistake on Mount Elgon clashes


This morning, the Minister for Internal Security John Michuki, in an interview on local radio station Kameme FM, gave the following statements:

  • There were 605 General Service Unit and administration police officers on the ground in the clash torn area (is this figure sufficient?)
  • 85 dead (and not other exaggerated figures)
  • There were no child mercenaries involved in the conflict
  • Locals should say whom among them, are the raiders
  • He would only go to tour the Mt. Elgon area when he felt like
  • He was working on the situation from Nairobi
  • He cannot be directed on how to carry out the job ie cannot be told to till an acre of land and then further accept directions on whether he should use a fork, a spade or a jembe.

Does this smack of arrogance? That assessment must be arrived at individually.

Suffice it to say that all over the world, it is highly recommended that leaders tour an area where clashes or a war is going on. US President Bush and other leaders with forces in war torn territories do this. The often go to Iraq.

It means a lot because you would get a feel of the situation first hand (second or third hand information is never good enough), and you would take the opportunity (and political mileage) of comforting and being seen to comfort the affected persons.

Without saying much more, reform in this area is fundamental.

31,200 people have been displaced following land clashes that have hit Mt. Elgon area in the Western part of Kenya since December 2006. The Internally Displaced People (IDPs) have camped in market areas, villages and with relatives. The clashes have also resulted in the deaths of 60 people, while others continue to nurse their injuries in hospital.

Some of the IDPs have moved to neighbouring districts of Bungoma, Trans-Nzoia and partly Busia. Mt. Elgon has four divisions, with Cheptais and Kopsiro as the worst affected by the clashes. The fleeing communities are still moving to neighbouring divisions of Kapsokwony and Kaptama.

Most residents have been left extremely vulnerable as their houses and food stocks have been burned and their livestock and livelihood threatened. The clashes have caused food shortages and thereby increased food prices in the local markets. The normal livelihood of these people has been drastically interfered with. Communities in Mt. Elgon depend mostly on agriculture as their major source of income.

Some schools remained closed after the December 2006 vacations, while those that opened recorded low student turn out or dwindling student numbers. Specifically, 12 schools have been adversely affected. On the other hand, schools in areas where there are no clashes have experienced an unprecedented increase in the number of student enrolments. In Lwandanyi division, for example, a primary school with formerly 800 pupils is now recording over 2,000 pupils.

As if to aggravate the situation, the locals and the displaced victims are competing over fuel, water and grazing land thus raising fears of further conflict. The price of charcoal has also increased tremendously because of the increased demand and is unaffordable to the locals.

As Mt. Elgon area is very cold, some of the IDPs, especially children and pregnant mothers, are now suffering from pneumonia and malaria. The water source is also not accessible to the affected people due to the ongoing clashes and so the IDPs have had to drink or use unclean water from springs and rivers. A number of children are experiencing malnutrition and this may cause further health complications. Most of the affected people are traumatised and need psychological counselling. Dispensaries are said to be attending to over 50 outpatients per day and have many inpatients who are IDPs. These have caused a considerable strain on the meagre resources that are available in the dispensaries.

There is still tension in the area since many people fear for the lives and even too frightened to provide information. Unless the situation is addressed it is expected that the current number of IDPs will increase beyond 31,200 people. The IDPs are now working in shambas, hotels and other recreational areas to raise some income and take care of their families. Some men even go back to their former areas of residence during the day to harvest some food items for their family members settled in the IDPs. In the process some get killed or injured.

The Kenya Red Cross Society’s Mt. Elgon and Bungoma Branches have distributed food and non-food relief supplies to the IDPs. The non-food items distributed comprise 2,100 blankets, 550 tarpaulins, 500 kitchen sets, 2,100 jerricans, 60,000 aqua tabs, 2,100 mosquito nets, 132 packs of tinned fish and unimix worth Ksh 2,934,300. The food items included 43 metric tonnes of maize flour, beans, canned fish, unimix, energy biscuits and cooking oil valued at about Ksh 3.1 million. These items were distributed in Sirisia, Cheptais Chwele, Tuikut, Kimabole, Namwela, Lwandayi and Mayanja areas. Relief distribution is ongoing.

While access to the areas affected is highly restricted due to a security operation by the Government of Kenya, the Kenya Red Cross Society continues to get access to the thousands of IDPs. The Kenya Red Cross Society is planning to provide medical attention to the affected people through building the capacity of the health centres in the area and also through organising mobile clinics to cater for those who have been adversely affected.


British Supermarket TESCO's move to lock out Kenyan fresh produce unfounded


Background

· On our about the 18th of January 2007, Tesco Supermarket Chain pledged to revolutionalise its business by becoming ‘ a leader in helping to create a low carbon economy’ by adopting new measures to tackle climate change.

· In the most significant step announced, the UK's biggest retailer, which produces 2m tonnes of carbon a year in the UK, said it would put new labels on every one of the 70,000 products it sells so that shoppers can compare carbon costs in the same way they can compare salt content and calorie counts.

· The Company also pledged to cut the emissions produced by its stores and distribution centres by 50% by 2020 and slash by 50% within five years the amount of CO2 used in its distribution network to deliver each case of goods.

· Tesco's move is the latest in a series as the big supermarkets battle to prove their green credentials. The trend was kick-started in 2005 by Lee Scott, president of the Wal-Mart discount chain in the US and the parent company of Asda. Mr Scott made a $500m (£255m) commitment to use 100% renewable energy, create zero waste and cut greenhouse emissions by 2009.

· Last year Tesco unveiled a 10-point plan designed to make it a "good neighbour" which included promises to install wind turbines and solar panels, source more food locally and encourage healthier eating. It has also started offering loyalty card points to shoppers who do not take carrier bags.

· Asda and Sainsbury's have unveiled similar initiatives. Marks & Spencer lhas recently unveiled a £200m environmental plan which included a pledge to become carbon neutral and send no waste to landfill by 2012. M&S boss, Stuart Rose, even pledged to trade in his BMW for a hydrogen-fuelled model.

· The British government has also waded into the issue. In 2006,the British environment secretary, David Miliband, told the bosses of the big four supermarkets to set and meet targets to cut carbon emissions, to use their buying power to demand greener products and to label electrical goods more clearly so that shoppers could more easily buy the most efficient products.

Time lines

· The new carbon labelling programme will not be immediate. Tesco has said that it would first have to develop a "universally accepted and commonly understood" measuring system.

· Implementation of carbon labeling shall be complex and could take several years to implement.

· As an initial step it would put airplane symbols on all goods imported by air as air travel is one of the most carbon intensive forms of transport.

The Problem.

· It shall be easy for British shoppers to misconstrue that a product with an airplane symbol depicts lots of carbon emissions, which is likely to contribute to poor sales for airlifted products, especially those from Africa.

· The carbon-footprint initiative is different from food-miles. Proponents of food-miles claim that the further food travels to market the less sustainable or energy efficient it is, and therefore the closer to its market that food is produced the better it is for the planet.

· The food-miles concept is fundamentally flawed because it does not accurately reflect the total energy used in production and processing, only the energy used for transport. As such it is not a useful or valid tool for assessing environmental impact.

Undermining of social and economic development of African countries through carbon labeling – recent research

Research conducted in late 2006 and released in January 2007 by the International institute for Environment and Develoment (IIED) in the United Kingdom has established that:

· The placement of an airplane symbol on a product, and eventually a carbon label on it, shall present an argument for the customer to purchase goods that have traveled the least distance from the farm to the table.

· This shall discriminate against long haul transportation, especially air freighted goods.

· Food miles is the vanguard of climate change in the United Kingdom.

· Food miles has captured consumer attention and is changing consumer behaviour, although only one third understand the concept.

· High value produce from Africa, especially flowers and horticulture are air-freighted, and are being singled out as the epitome of unsustainable consumption.

· Food miles as a concept is blind to social and economic benefits associated with trade in food, especially from developing countries.

UK consuming fresh produce from Africa

· The United Kingdom is consuming more fresh produce from Africa than never before.

· A wide range of fresh produce is imported to the United Kingdom from Sub-saharan Africa, excluding South Africa.

· This trade is dependent on the UK consumer as well as on air freight.

· 40% of air freighted fresh fruit and vegetables are from sub Saharan Africa

· Poor African countries rely on the UK market to support their domestic industry

Ecological space

· ‘Ecological space’ is the individualised (per capita) right to natural resources for utilization such as energy, food, land and water. The concept of equitable ecological space translates well into “per capita carbon dioxide emissions” and the “per capita right to emit carbon dioxide”.

· Currently, carbon dioxide emissions per person are very unequal and the gap is widening: global, 3.6 tonnes; the UK, 9.2 tonnes; Africa, 1 tonne. Furthermore, African figures are skewed towards oil-rich countries, and only two countries exceed the global average. Hence,Sub Saharan countries have considerable reserves of “ecological space” compared with industrialized countries.

Inequality of impact and adaptive capacities of climate change.

· Many African countries are feeling the force of climate change impacts, the root cause of which was produced in developed countries. Poorer countries have fewer disposable financial resources to commit to adapting to these impacts.

The Kyoto Protocol

· The Kyoto Protocol recognises the need for equity and economic development for developing countries in the transition to a low-carbon future. Current calculations of a sustainable carbon future estimate equitable ecological space per capita as 1.8 tonnes. This represents the estimated absorptive capacity of natural carbon sinks, both land and sea. Yet this per capita space is falling owing to projected warmer climate accelerating the decay of carbon in soils coupled with projected population increases.

Trade offs between global environmental goods and local poverty

· Kenya is a good example of how local economic development follows export horticulture development. Kenya was the first Sub Saharan African to develop systems in which high-value horticulture is exported to the UK. A full 70% of green beans (of exportable quality) produced in Kenya come to the UK.

· This business is perceived as a success, and a number of other countries have followed - 87% of UK green beans imports are from five African countries.

Decisions of policy makers and consumers to be based on good information.

· What is clear is that decisions – of consumers, of policy makers,

and of the food chain businesses – should be based on good

information.

· If environmental harm is to be weighed against

developmental gains, it is essential that

(1) the degree of harm is quantified and put into the context of other food choices,

(2) the degree of harm is put into context of Africa’s current use of ‘ecological space’, and

(3) the degree of development gain is quantified, to demonstrate whether this trade really benefits those living in poverty.

Are food imports from Africa driving climate change

· There is increasing evidence that the UK’s carbon footprint is largely domestically generated. Indeed, to reach targets under Kyoto the UK needs to prioritise addressing domestic road transport and energy use first, then aviation.

· Estimates of doubling of air travel in the next twenty years coupled with high carbon emissions, and the exacerbating effect of “radiative forcing”, make aviation cuts a necessary part of the solution.

· Yet the main share of increased flights appears to passenger traffic; in the UK, passenger flights account for 90% of emissions from air transport, and international freight for 5%. But, air-freight is a significant contributor to total food transport

emissions in the UK.

· Only 1.5% of imported fresh fruits and vegetables arrive in air transportation but that portion produces 50% of all emissions from fruit and vegetable transportation.

· It is clear that for most products that can be grown outside

greenhouses and without heating, air-freighted produce usually scores poorly in terms of emissions compared with locally grown produce. Plus, air-freight is responsible for 200 times more emissions if flown rather than shipped from Kenya, or 12 times more energy.

· There is no firm evidence that UK consumers not eating imported fresh fruits and vegetables, fewer planes would fly today or in future. Indeed, an annual expansion of 6% in air traffic in all sectors (fresh fruits and vegetables imports, passenger volumes, and dedicated freight).

· Air-freight of fresh fruits and vegetables from sub Saharan countries accounts for less than 0.1% of total carbon UK emissions.

· In the big picture, the environmental cost of international food transport is trivial compared with UK domestic food-miles. Plus, air-freight is the only possible mode of transport for some highly perishable produce where no other infrastructure exists.

· Fresh fruits and vegetables imports highlight one of the key reasons for not including aviation emissions under Kyoto Protocol - the difficulty of allocating carbon between trading nations.

· While a 50-50 split appears to be a simple equitable solution, in practice there are measurement difficulties associated with transport hubs, passengers/cargo split, mail service, triangular flight paths and problems assessing the necessity of some cargo (such as medicines and vaccines). Plus, for fresh fruits and vegetables the large majority of imports to the UK are carried opportunistically in the belly-hold of passenger aircraft, and the rest in dedicated freight.

Are food imports from Africa driving African poverty reduction?

· Air-freighted produce from Sub Saharan Africa to the UK bestows considerable direct benefits on poor rural economies.

· Over one million people in rural Africa are supported by the fresh fruits and vegetables exports to the UK.

· An estimated 50-60,000 small-scale producers and 50-60,000 employees on larger farms grow produce that is consumed in the UK.

· When dependents and service providers are factored in, an estimated 1-1.5 million people’s livelihoods depend in part on the supply chain linking production on African soil and consumption in the UK.

· An estimated £200 million is injected into rural economies in Africa through fresh fruits and vegetables trade with the UK alone.

· From a development perspective, airfreight of fresh fruits and vegetables from sub Saharan africa is a relatively efficient “investment” by the UK in allocating its carbon emissions to support livelihoods when compared to the efficiency of the remaining 99.9% that is supporting 60 million UK residents.

Observations and Recommendations

· Economic development for the poorest in a low carbon future will mean expanding emissions for some. For those countries with excess “ecological space”, there exists a potential to use some of this space to reduce poverty, generate low-carbon economic growth and foster development.

· Export horticulture is one of the few genuine opportunities for developing countries that have direct and indirect benefits that reach into poor rural areas. Plus, there is projected future growth in export horticulture from existing and emerging producer countries in Africa, owing to tourism, economic development and more socially conscious procurement patterns in all industries.

· The food miles and carbon labelling concepts needs reform, to include social and economic development aspects. Singular comparisons do not necessarily help us to generate good policy.

· All environmental and social aspects need to be analysed, and trade-offs assessed.

· Over one million livelihoods in Africa are supported by UK consumption of imported fresh fruit and vegetables.

· Not buying fresh produce air-freighted from Africa will reduce UK total emissions by less than 0.1%. It is time to look to the huge impacts of the food system at home, rather than pull up the drawbridge on Africa.

· There must be intense negotiations and agreement between affected Governments as well as orgnisations representing the interested parties.

Wednesday, April 04, 2007

Risk Management


A couple of weeks ago, I was urgently called in to advise an Asian family whose daughter had been arrested by officers from Banking Fraud.

As you may know, this is a department of the CID (even though it is couched as a deparment of the Central bank of Kenya).

Contrary to expectations that the Banking Fraud Unit would be more diplomatic and professional, the officers who effected the young girl's arrest were no different from the usual police. They were rude, loud talking, coarse and arrogant. I am told that they even shamelessly demanded a bribe.

They agreed to accompany the complainant to the school where the young lady picks her daughter from school, tailed her until she stopped at a junction to buy maize for her daugher, then cut her off and jumped into her car, scaring the daylights out of the young girl and her daughter.

There was no warrant of arrest.

They then agreed, with some dissatisfaction to let the young lady drop her daughter to her house, and then accompany her to the Banking fraud unit in town.

All this took place at 5pm.

Questions:

1. Why could they not obtain a warrant of arrest
2. Why did they effect the arrest as they did, causing a risk of mental trauma to the nursery school child
3. Why could they not wait until morning to conduct this operation
4. Was this done so that they could extort some bribe out of the lady and her family?

Nevertheless, the young lady spent two nights in a cell before charged in Court, and she is now out on a cash bail.

What was impressive was that the young lady's muslim Asian community has in place what they call a Risk Management Committee, both at local and national level.

Overnight, these communities communicated with the owners of teh business that had lodged a complaint to the Banking Fraud unit, in Dubai seeking to find an amicable solution to the problem.

They even have their own arbitration committee. And they have worked hard to ensure that some of them have open lines of communication with the top bosses in police stations, police divisions and so on.

They have a connection everywhere in order to serve and help their community.

It reminded me of another incident where an Asian who had been arrested by the city council and was put in the cells at Spring Valley police station, was quickly released after contact was made with the police bosses. Indeed, a big shot police officer actually came to the police station and supervised the release of the Asian.

Risk management is critical in today's life, especially in Kenya.

What are you doing your community to put in place risk management structures that are organised and efficient?

Monday, March 26, 2007

Western Union money transfer to dominate Posta Pay




When Posta Pay was launched last year as a cheap fast money transfer service of the Postal Corporation of Kenya, few people thought that Western Union money transfer would hold out, especially for money transfers within the borders of Kenya.

Months after the launch of the service, it seems that Western Union has managed to hold its own pretty well.

Wishing to establish the reasons for this, I went to GPO last Saturday, the head quarters of Posta Kenya in Nairobi, to send some money to a friend in the coast region.

There were only two counters, and there was a long queue of people waiting to send or receive money.

In spite of notices indicating that one counter was for sending and another for receiving, this procedure was not followed, all persons queued on one line, and went to each counter as and when it became available.

The customers were furious. It took an average of 45 minutes for me to get to the counter. The counters were moving far too slowly.

A manager was hovering behind the counters, not listening to customer complaints.

If this was a private institution, the manager would probably have knucked down to open a fresh counter, and serve more customers, in order that Posta makes more money from commissions...alas, this never seems to feature in the minds of most Government or quasi-Government institutions..and Posta is a glaring example of that.

To add insult to injury, the watchman from a non-familiar security company, kept hovering and glaring at the customers, exchanging rude insults with them, refusing to call a manager to address the customers saying that was not his job, even threating to physically square it outside after hours with a particularly infuriated customer.... this was particularly disastrous on the calibre of security personnel hired by Posta.

There was no TV, no water to drink, no seats to rest nearby...a terrible experience.

The Post office was then closed at 12noon or thereabouts.

I decided to go for an early lunch until 2pm when i sauntered over to Western Union at Nation Building.

There were 3 counters, all open (they are even open on Sunday), there was no queue (there were comfortable seats and mineral water to quench your thirst while watching TV or reading the provided newspaper).

The watchman from a well known security company was very discplined, sat well away from the customers, the attendants at the counters were very friendly indeed, and the transaction was concluded expeditiously.

It is therefore no surprise that I (and many customers) shall always go to Western Union money transfer in spite of their slightly higher charges....Posta Pay has left a very bitter taste in my mouth !

Thursday, March 22, 2007

The Massive Risks & Gaping Loopholes that are driving investors off the Nairobi Stock Exchange



On February 19, 2007, Edward Ntalami, Chief Executive Capital Markets Authority (CMA) issued a notice that Francis Thuo and Partners have been barred from accessing the trading floor of the Nairobi Stock Exchange for 14 days to enable it address certain financial, operational and non compliance issues. The statement went further to state that the firm was directed to temporarily halt further trading and dealing, address the non compliance issues and deal with pending obligations to its clients.

The firm has since been placed by the CMA under management under the Nairobi Stock Exchange.

It is estimated that a sum of KES 140 million has gone down with this broker.

Investors, who initially thought they were covered to the full extent of their investment, were shocked to hear Mr. Ntalami say that each of them could only expect a maximum sum of KES 50,000/= compensation from the Capital Markets Authority.

The loop holes now existing in the electronic trading system of the Nairobi Stock exchange are simply mind boggling and permitted Francis Thuo (and perhaps others) to:

i) give
the brokers free access to their clients’ investments, unlike in the past where share certificates, a crucial document that was required for any transaction, was held by the investor and would only be surrendered when the investor wanted to liquidate his stocks.

ii)
allow dealers to sell the shares when they hit a certain peak without the shareholders’ consent, only to replace them when the prices dip, making a killing in the process.

Mr Daniel Mwaniki is reported to be one such victim of exploitation by the unethical brokers.

After being a client for over 22 years at the now ailing stock brokerage firm, Francis Thuo and Partners Ltd, Mwaniki was shocked when he noticed that his broker, without his consent, had sold his 4,000 National Bank of Kenya shares valued at over Sh200,000 in January this year.

Upon making an enquiry, one of the firm’s directors, Mr Peter Thuo, hastily credited Mwaniki’s account with 3,000 NBK shares and bought him an additional 1,000 shares at a cost of Sh40,000.

A short text message from the director to Mr Mwaniki reads thus: "We have put back in your account 4,000 NBK shares as agreed. Thank you. Peter Thuo."

Regulator inaction

It is very disturbing to note that the
legal custodian of shareholders’ investments and the market regulators — the state owned Capital Markets Authority (CMA) through the Central Depository and Settlement system, has all along been aware of the current loop holes and actual exploitation of the system.

In October last year, the CEO of the Central Depository System is alleged to have been quoted in a local daily as saying that it is "technically possible" for a stock broker to initiate a transaction without consent, and warned that shareholders should question any suspicious transactions reflected in their statements.

Lack of verification requirements

Prior to the commencement of the Automatic Trading System at the NSE, a written authorisation and a share certificate from the shareholder was required for any dealing in an investors’ shares to be commenced by a broker.

This requirement appears to have been ignored by stock brokers. Indeed, No verification by the shareholder is required before a share transfer is effected.

Present customary practice is that brokers from the different stock brokerage houses post orders from their clients into the system, which then automatically matches them without any requirement for authorisation by the shareholder.

Mr Wellington Mutuku Mbondo is reported to be another victim of the stock brokers.

His four thousand five hundred shares (4,500) of Kenya Power and Lighting Company (KPLC) were sold in January without his consent. He discovered that they had been sold when he got his statement from the CDSC weeks later.

With each KPLC share trading at Sh278 at close of the market on Friday, last week, Mr Mbondo is facing a possible loss of Sh1.25 million. To add to his misery, Francis Thuo were his stock brokers.

Widespread

Similar stories have been reported involving a number of other stock broking firms.

Lack of transparency and action by the CMA

It has been reported that many investors with complaints have been unable to obtain any sort of action from the CMA.

Francis Thuo has been having financial problems for quite a while, but the CMA has conveniently failed, refused and/or ignored to take action to prevent members of the public from pouring their money into the Francis Thuo bottomless pit.

Reported Irregularities on the trading floor

During Eveready IPO’s first day of trading at the stock market, a ‘hitch’ in the system was said to have restricted the share price movement to a rate above 10 per cent. Under normal circumtances the first day of trading of an IPO, the share price can fluctuate by margins of more than 10 per cent of the initial price.

The CMA opted to leave it to Nairobi Stock Exchange to issue a public statement. This was the situation again when news of the CFC/Stanbic banks merger talks that saw the bank’s share price soar to Sh900, which was later attributed by the NSE to be a 'mistake'.

UCHUMI remains suspended from the Nairobi Stock Exchange and the CMA has not given any indication as to when, if ever, investors may redeem the values of their shares in the company.

The above are serious anomalies....which need redress. Not only do investors have to deal with fluctuation of share prices, they also have to contend with insufficient regulatory laws and a slow moving and non-anticipatory Capital Markets Authority.

Is it any surprise that stocks at the Nairobi Stock Exchange are now falling on a daily basis, in spite good earnings reported by the companies?

The risk is yours.

Monday, March 19, 2007

Michuki's shoot to kill Order and the Right to Life


Last week's endorsement by Internal Security Minister John Michuki of his officers to gun down any suspect caught with a gun is a gross contravention of thepolice Constitutional right to life, let alone the right to be taken through the due process of law.

Mr. Michuki may be a frustrated man as violent crime surges in this country, but his orders shall not solve the problem.

Indeed it has been touted that many innocent lives shall be lost through unnecessary deaths at the hands of police officers. It is not inconceivable for innoncent persons to have firearms (even toy pistols) planted on them to justify their death.

It is high time that this country puts in place a body akin to the UK's Indepenent Police Complaints Commission.

Such a body would indendently investigate all complaints from the public against individual police officers, and take necessary action against including commencing criminal proceedings against them.

In the meantime, the following skeleton pointers may assist Hon. John Michuki to deal more effectively with crime:

1. There is need to set out the nature of the problem and current trends
2. develop a comprehensive strategy
3. develop a comprehensive violent crime reduction strategy
4 develop a strategy to intercept sources of illegal arms
5. develop a constitutionally acceptable strategy to deter illegal gun possession and carrying
6. implement education intiatives

The above strategies must also include a comprehensive review of the competence, remuneration and recruitment systems of the police force.

Wednesday, March 14, 2007

Criminal prosecutions wrong jurisprudence for civil cases


Yesterday, the Court of appeal barred the subordinate courts from continuing with the criminal prosecution of former Kenyatta National Hospital (KNH) director, Mr Hosea Waweru, and then chief legal officer, Mr Jorum Mwenda Guantai, on the basis that ..." it is wrong jurisprudence to attempt to rescind lawfully executed contracts by criminally prosecuting the officials of a State Corporation, who are deemed to have breached the regulations."

As one wise judge has previously noted, every civil action can be criminally prosecuted..and hence criminal prosecutions should be commenced in clear cases.

What a relief...that our Court of Appeal is still on top of legal jurisprudence in this country.




Monday, March 12, 2007

Mortgages are nothing but trouble


It was interesting to read an article in the East African Standard entitled "Escape door from a troubled mortgage"

The article gave a few suggestions on how to help yourself escape the mortgage repayment trap.

In my view, it was simply to prolong the inevitable.

Mortgages are legal instruments pursuant to which you give your financier the right to sell off your house, upon default.

Financiers are in the financing business with a view to making money. I have seen many times how merciless they can be, notwithstanding even the death of the person who has taken out eth mortgage, let along unexpected job losses.

The propert shall be sold if you default.

Perhaps your possible saving grace is that you find yourself a good lawyer, who knows how to dig holes in the financier's documentation, in order to secure you a lifeline.

Having said that, the in duplum rule, is just about to kick in, and will ensure that the interest on defaulting loans, does not exceed twice the principle amount lent....which is a good thing!


Thursday, March 01, 2007

Murder of a suspect or not



Last week, Simon Matheri Ikere met his maker after he was shot by police at his home.

He was buried yesterday.

The Kenya National Commission on Human Rights Chairman Maina Kiaia, wrote an article in the dailies, alleging that the circumstances under which Matheri died, were suspicious.

He alleged that Matheri had been questioned for 30 minutes before he was shot.

Question: Was this murder?

The jury is out on this one.

What is clear, however, is that dead men tell no tales!

Maina, as he rightly put it, is unlikely to receive much support in his allegations, whatever may have actually happened.

Deadly violent crime has reached intolerable levels in this country, and most of the public will look at Matheri's death with approval.

Another question: What will be achieved by charging Matheri's wife with the offence of harbouring a criminal?

Wednesday, January 10, 2007

Cash carrying risks

This week, we experienced the sad story of three policemen who died when their cash carrying Wells Fargo van was ambushed, riddled with bullets, and KShs. 22.4 Million in cash stolen.

Like all crimes, this one too could have been prevented.

One prevention tip is to have a separate chase car carrying the cops. This has now been implemented through a directive issued by the internal security Minister John Michuki.

The second prevention tip is to ensure that the cash carrying vehicles are bullet proof. The ill fated Wells Fargo van does not appear to have been bullet proof, although there are a number of security courier companies that have bullet proof vans.

The third prevention tip is to ensure that all persons in the cash carrying vans have bullet proof vests.

And the fourth is to avoid predictability regarding the times when cash is carried around.

Clearly, the thugs were well informed on when the delivery would be made, including the timings and the cash involved.

Someone is obviously not doing his/her job somewhere...and is placing innocent lives at stake.

Saturday, December 09, 2006

Kenya - Teargas has no role in democracy


Reproduced from the Daily Nation of 7th December 2006

It looks as though we are approaching the end of the year under heightened political tension. The row over the coup that placed Government allies in the leadership of the Official Opposition has provided a rallying point for those whose mandate is to keep the Government on its toes.

The result was the protest on Tuesday that was violently broken up by police in Nairobi. We are likely to see more of such protests in coming days.

Tear gas and truncheons may not be enough to cow opposition leaders who have been handed by the Government the ideal issue on which to galvanise protests.

Without looking into the legality or otherwise of the coup in Kanu and appearance of Government complicity, the important thing is to ensure the situation does not escalate into violence.

We are at a stage in the development of democracy where legitimate protest must be accepted in accordance with the constitutional guarantees on the right to free speech, assembly and association.

What is important is that peace prevail, in which case the Government has no cause to call in riot police where there is no threat to law and order.

It is thus incumbent on those organising the protests to ensure they remain peaceful, and the organisers must know they will suffer the consequences if the law is broken.

But it is also incumbent on the Government to ensure those who wish to legitimately assemble or march are given the freedom to do so.

Police should only come in if it becomes necessary to restore peace. These are principles that must be adhered to as we approach what could become a frenetic election year.

Tuesday, December 05, 2006

Licencing of political rallies and demonstrations and police action in breaking them up

The last time I checked, if you wish to hold a rally or demonstration of any sort, you only need to notify the authorities of your intention, and there is no requirement that a licence be actually issued.

Today, we have witnessed the ODM rally, which had been cancelled by the Government, duly dispersed with tear gas et al.

The point i want to make here, is whether the police should actually be using the kind of force that they do to disperse such rallies. A combination of the tear gas, water dispensers, arrests, physical beatings by the police appear to be excessive.

There have been furores in the United States recently, when police have been sighted beating up persons who were not a threat to them in any way.

When shall Kenyans decide to put their foot down on violation of their rights?

I have no doubt they have the capacity to do so....properly seen when people walked to work and back to their homes for a few days, when the matatus were on strike while fighting the 'Michuki rules'.

Perhaps their reluctance may be driven by the notoriety of the police to fire off live bullets when breaking up a demonstration....but the wrongs must be righted...some day...hopefully sooner rather than later.

As for Kenyatta, Ruto & Co., have they not yet figured out that they are NOT in power, and that your greatest enemy is the one within your ranks?

I am not surprised by the trump card played by the Government in these matters...only genuine admiration do I have.

Thursday, November 16, 2006

the law of evidence in motor vehicle accident

This morning, my car was fairly badly damaged in the parking lot outside my flat, by a lady driver who is still learning how to drive.

She claims that she is still unfamiliar with her automatic gear shift and while intending to hit the brakes, hit the acceleration pedal instead.

I felt sorry for her as I directed her car onto a safe parking.

She surely is still a learner, with a young family.

Why does she risk her life and the lives of her young babies, by driving out onto our mad roads, when she is still not yet competent, and does not carry a Learner's sign on her car.

Well, remembering the need for collecting evidence, I took a few photos of the accident scene with my camera, just in case her remorse turns into denial in the fullness of time.

Meantime, as my car was grounded and not insured, I may have to look for money to repair the hideous damage, that is unless she agrees to do it for me. She better, or I shall most certainly sue her to recover my loss.

Wednesday, October 11, 2006

Police breaking the law

Last night on the KTN news, I watched three or so policeman harass innocent members of the public on the dark alley next to Standard Chartered Bank on Tom Mboya Street.
These male policeman forced a lady in the alley to lift up her skirts so that they could do a body search. Money which fell off her hand bag was quickly pocketed by the policemen.
To make it worse, they bundled her into an unmarked car and drove her to God knows where. God be with her.

That there are many policemen in this country who have gone bad is no mystery. A report issued the other day indicated that Nairobi residents are more likely to be shot dead by a policeman than by a criminal. http://allafrica.com/stories/200609180475.html.

The study conducted by former Chief Government Pathologist Kirasi Olumbe and Dr Ahmed Kalebi, the North Eastern provincial pathologist, observed that the victims are more likely to be shot in the streets of the city suburbs and estates. The study further established that while police were most likely to shoot a suspect many times, majority of the criminals shoot their victims only once. The study also noted that the trigger happy policemen will always shoot to kill on the head or chest. It further noted that police were most likely to shoot a suspect many times, whereas majority of the criminals shoot their victims only once.

This is contrary to the requirements section 28 of the Police Act Chapter 84 Laws of Kenya that allow a policeman to use a firearm ONLY where the officer has reasonable ground to believe that he or any other person is in danger of grievous bodily harm or that he cannot otherwise effect an arrest.

Such shootings have been known to occur at pro-democracy ralies, http://auto_sol.tao.ca/node/view/757,

Significantly, such shootings by police at innocent civilians have often occured when the victim was unarmed and harmless. http://www.timesnews.co.ke/07nov05/nwsstory/topstry.html
even where the innocent civilian is on the floor pleading for mercy. It even happened to a innocent Catholic priest. http://www.cwnews.com/news/viewstory.cfm?recnum=14480

This alarming trend cannot be rectified where the Police bosses defend the above practice, such as Kingori Mwangi did by saying "majority of those gunned down were dangerous criminals who posed a serious threat to the public and the shooting officer."

The truth will always be that dead men tell no tales, which has worked many times in favour of the errant officer.

It has also been felt that the actions of the Police have a lot to do with the shoot to kill orders of Internal Security Minister John Michuki. http://news.bbc.co.uk/2/hi/africa/4374649.stm

It has long been said that Kenya needs to urgently establish a body independent of the police infrastracture, akin to the Independent Police Complaints Commission in England and Wales, that would receive complaints from members of the public on errant shootings, summon the policeman concerned, hold a minitrial, and pass judgment on the officer, resulting in imprisonment and fines.http://www.ipcc.gov.uk/

Unfortunately, our MPs are not making the right kind of noises in the right kind of places, especially since it doesn't add any beef on their sizeable platter.

Further, the breaches of human rights and the law by many of our policemen does not appear to be interesting to Maina Kiai, who seems to find corruption related issues more attractive, in spite of a lack of mandate in that general area.

Be that as it may, you need to know how to possibly avoid being shot by trigger happy policemen in our country. Free advice:

a) avoid poorly lit alleys and streets, such as those many alleys along Tom Mboya Street
b) avoid staying late on Fridays, rogue policemen will want to arrest you on Friday, as the bribes are said to be better so that you can avoid spending the weekend in the cells
c) do not dress suspiciously (presumed to be rastafarian outfits, all untidy and unkempt outfits)
d) do not drive suspicious cars (presumed to be very old rickety cars)
e) do not drive in a suspicious manner(presumed to be in a zig zag manner, or driving round and round a particular location)
f) always have the mobile number of a policeman (the senior the better) you can call on if necessary
g) avoid pubs and clubs in the Nairobi CBD if you are not driving home thereafter
h) always carry extra money on you, other than that which you have in your wallet or handbag
i) strong arguments with policemen , especially at secluded places at night, are to be avoided

Should you choose to ignore the above, then say a loud prayer, it may just save you!

Tuesday, September 19, 2006

cops and corruption in Kenya

Today I keenly observed what many Kenyans observe every day. A traffic policeman stops a driver on the road to Yaya Centre at Hurlingham. The driver was caught talking on his mobile.(it could be any other minor traffic offence) The policeman quickly invites himself into the front passenger seat and the car moves ahead, slowly. Being in the vehicle directly behind, I clearly see the traffic policeman say a few words, and receive a bank note from the driver, clearly a bribe. The traffic policeman then exits the vehicle a few metres ahead, a flat expression on his face which comes from having done the same thing many many times.
...it is simply bewildering that the Police Commissioner has not been seen to act against these corrupt officers. The Kenya Anti Corruption should continue to hound the Police.

Wednesday, September 13, 2006

Fraud in Kenyan companies

Just the other day i received instructions to recover some money for a Client that had disappeared when a company went down.
After some investigation, I came to discover that the Companies Act allows the shareholders to voluntarily dissolve a company, so long as they swear an affidavit stating that the company will be able to settle all its debts.
Alas, it is only after the liquidator has moved in that it is discovered that the company cannot pay off its debtors. By this time, the shareholders have taken off scot free. This is what I am now dealing with in the Court.

Beware of trading with companies that have only 2 or 3 shareholders doubling up as Directors of the same company.