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Wednesday, July 02, 2008

What Kibaki Is About To Do To Ease Grand Regency Pressure

Muta-do?

The Anglo Leasing scandal which happened during President Kibaki’s first term and where Kenyans lost billions of shillings is now long forgotten.

But what should interest Kenyans more is what was done to cool off things then because history is about to repeat itself on hapless Kenyans.

Those who know the president are well aware of the fact that he is very slow to make decisions. This has both advantages and disadvantages as any good manager will tell you. One of the huge disadvantages is that in our fast-paced world of today delayed decisions can be disastrous. But I digress. What I wanted to say was that at the height of Anglo Leasing, there was pressure for days which turned into weeks and finally the Finance Minister then Daudi Mwiraria resigned over the still unsolved scandal. This was followed by the resignation of the then energy minister Kiraitu Murungi (whose voice was clearly heard in one of the Githongo tapes asking the ethics PS to go slow on Anglo leasing culprits). Note that the two ministers were not sacked. They resigned.

It was not lost on close observers that both ministers had sworn never to resign (just like Amos Kimunya has done. In fact he has said that those calling for his resignation should themselves resign). But after a brief meeting with the appointing authority they emerged with a different mind set. The president hates to fire anybody and that is a serious management weakness.

The resignation of a cabinet minister was unprecedented in the history of Kenya at the time and therefore the public was very excited and happy. The end result of this was that information released later on the Anglo Leasing scam was mostly ignored. Kenyans never got to the bottom of Anglo Leasing and Mwai Kibaki survived to fight another day.

We all know what happened next. The two gentlemen sneaked back into cabinet after being given a clean bill of health by the anti corruption jokers led by one Aaron Ringera.

Now folks, watch carefully. The same thing is about to happen. This is almost a certainty and the only thing nagging the president’s close advisors now is whom to replace Kimunya with. Yep, shifty-eyes-blind-side-winger Amos Kimunya is going to be used as a sacrificial lamb.

But what must really be nagging Kibaki insiders is the fact that there is the annoying possibility that the ODM arm of the coalition government will push for one of their own to take over at Treasury which will in fact be a very smart move because it will appease ODM supporters who will no longer be interested in getting to the bottom of this Grand Regency saga. PNU chaps will then just fall into line. Or divert attention by making noise about the appointment. Perfect. Just perfect. There are too many possibilities in the star-studded ODM camp for the Finance portfolio starting with Prof Anyang Nyong’o.

The other advantage of appointing from ODM is that it may just cause this 6 month marriage to be finally consummated. Very strange marriage this coalition thing, imagine there has been no sex happening! What kind of marriage is that?

And so Mwai Kibaki will survive yet again.

Muta-do?

P.S. I am certain of one thing. Mwai Kibaki has lots of regrets over decisions that he made last year in the run up to the ill-fated presidential elections (including the current Grand Regency thing and many other issues that will emerge in due time. But if you want to know them early you can read my latest raw notes).

I am sure he has fantasies all the time about the comfortable slow life in retirement that he would have been enjoying at Othaya now while Raila Odinga would have been sweating it out by now and seeing his popularity dip from some very high and impossible expectations Kenyans had. Problems like the current oil price crisis and rising food prices would have ensured a very rocky beginning indeed for the ODM government. The people would have been saying that Kibaki’s rule was better. I can almost see some MPs making noise in parliament about President Odinga and saying that he does not know any economics like Mwai Kibaki did.

But alas last year Mr Kibaki did not want to go down in history as the first one-term president ever in Africa, nothing else mattered. Now he has to pay the price.

Life is really fascinating ain’t it?



Breaking News at 6:22 PM

Parliament has just unanimously passed the motion of censure against Finance Minister Amos Kimunya. A sweating Kimunya at one point even had to invoke his wife and daughter in an emotional defense that lacked substance. The drama continues to unfold. The big question is will kenyans get the answers or will the resignation of Kimunya close the chapter?

72 comments:

Anonymous said...

hey chris, why don't you post what is going on right now. they are showing parliament live discussing kimunya's censorship. that idiot is going DOWN!

Apps

Anonymous said...

yawa tho!

kumuekucha. you took the thoughts right out of my pedigree brain.

maiyo! missing! mulembe! ngai fafa!

Taabu said...

Chris,
Not so fast mate. Emillio may just decide to pull a fast one this time round and stay put, MTA DO? Kimunya mau not go anywhere he is human and may chose to go down fighting and lift the lid off the can of worms. Meanwhile the noise continues as THIEVES circle carcass Kenya. Na bado.

Anonymous said...

YAAAAH - WA
" Let Us Reject Being Mere Spectators in Life, To Becoming Masters Of Our Own Destiny………………. Koro to you all, I want to resait a poem for you and I wis you were there to watch me...

When Kisum bekem a siiti,
Suzzana Owiyo bekem Witney oustoone

When Kisum bekem a siiti,
Dennis Oliech bekem Thiieerry Heenri,

When Kisum bekem a siiti,
Louis Otieno bekem Lari King

When Kisum bekem a siiti,
Obama became a Seneta,


When Kisum bekem a siiti,
lek victoria bekem an osen

When Kisum bekem a siiti
all the mbuta in the lek bekem wales

When Kisum bekem a siiti
all fising boats bekem sips

When Kisum bekem a siiti
all omena bekem saks

When Kisum bekem a siiti,
all fisamen became sip captens

When Kisum bekem a siiti,
Gidi Gidi Maji Maji bekem Boys-To-Men OMera

When Kisum bekem a siiti,
Mercy Myra bekem Jennifer Lopez

When Kisum bekem a siiti,
Achieng Abura bekem Queen Latifah

Soult i....
bt do we Say....
when Obama becomes presitent.....
all luo's will become AmeriKans

YAWAA
call me on my samsuuung.... on my soosiall(social) line....( PHONE NUMBER
NOT SOWN FOR SEECURITII PAPASES

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....Haya u can join me
BADO MAPAMBANO,MAPAMBANO!!!!! MAPAAAMBANNOO!!!!!!

nice evening

Tho' tis hard, I'd ratha luz honorably than with dishonesty....... !!

Anonymous said...

Breaking News at 6:22 PM

How I wish it was:

Parliament has just unanimously passed the motion of censure against THE DULY ERECTED. A ERECTED at one point even had to invoke his Wives and daughter in an emotional defense that lacked substance. The drama continues to unfold. The big question is will kenyans get the answers or will the resignation of Kimunya,the Representative of the DULY ERECTED close the chapter?

Phil said...

These are my immediate thoughts.

You see, PM's probe committee has been going through Grand regency saga files with a tooth comb since this early morning. My fear is more than half of those documents might be fake and some of those companies involved might be ghost companies. Unless there were forensic investigators involved, I am casting aspersions on the report of the probe committee even before it is released. The galant MPs who passed today's no confidence motion have passed a strong message to the Grand Coalition cabinet. It may also have serious ramifications on the budget debate and government operations for this financial year becasue it is unlikely bunge will pass budget if Kimunya is not sacked and/or replaced.

Unfortunately, the PM probe committee report is what Kibaki will use to give Kimunya a life line probably in another 'colourless' ministry. As it is, and very unusually, the probe committee is set to present the report to the President, rather than the PM who formed the committee. What Iam saying is that Kibaki will completely IGNORE parliaments vote of no confidence on Kimunya and instead give him a soft landing through a mini reshuffle.

I am foreseeing George Saitoti making a comeback to the treasury and Michuki may just go back to internal security while Kimunya might just be soft landed at the environment ministry.

Raila Odinga being the astute politician that he is MUST use this Kimunya fiasco to win more portfolio for his ODM brigade. The 'extra' portfolio may be given to Kipsigis MPs crying wolf over cabinet appointments and then the Roads ministry can be used to woo an MP in central province into the ODM ranks. It will be a marvelous build-up to the forthcoming declaration of Raila Odinga as a Kikuyu elder and also increase ODM's national stature. It will be unforgivable if ODM emerges out of this with just the late Kones and Larboso's seats in cabinet.

Meanwhile, it is noteworthy that of all senior cabinet ministers - only Michuki and Kalonzo rose in parliament to defend besieged Kimunya. Martha karua was present but she kept her distance from the microphones...(...speaks volumes, right???). Uhuru Kenyatta, Saitoti, Raila, and a host of other ministers were absent in today's heated session. However Beth Mugo's deep manly voice could be heard among the few voices which said NO when speaker called for support of the censure motion.

Kudo's to Dr. Bonnie Khalwale and Ababu Namwamba. Kaaeni ngumu.

More later.

Anonymous said...

Hahaha so clever, now ODM will nominate someone to take over the finance docket, and if PNU refuse, they'll get the public to fight for it, because ODM have saved us from a corrupt deal! Wow! Congratulations to Orengo who 5 months ago sold all his principles to join a political party that is just as tainted as PNU.

Vikii said...

Phil, Raila and his ODM nominating for appointment a finance minister and then going ahead to bribe Central Province with the ministry of Roads? Hata kama ni delusion chali yangu hiyo yako imezidi. Watch out for Prof. Saitoti, Prof Kaloki or even Musikari Kombo if Kimunya is ever asked to resign.

KenyaLuv said...

The Anglo Leasing scandal which happened during President Kibaki’s first term and where Kenyans lost billions of shillings is now long forgotten.
^^^
that's factually INCORRECT. Billions of shillings were never lost, the deal never happened, don't spread lies..deal with facts.

KenyaLuv said...

But what must really be nagging Kibaki insiders is the fact that there is the annoying possibility that the ODM arm of the coalition government will push for one of their own to take over at Treasury which will in fact be a very smart move because it will appease ODM supporters who will no longer be interested in getting to the bottom of this Grand Regency saga.
^^^
so you acknowledge that ODM has never been interested in fighting corruption but just want big seats for Raila and his cronies?

Kwale said...

Chris I like your PS message. You see, I don’t understand the ruthless and murky world of Kenyan politics very well but in the previous post I have given an example of what happened in Ukraine after disputed election. And it is the same thing that can be said about Kenya. Even though the losing candidate in Ukraine was later declared the winner after a run-off, the euphoria that greeted the Ukrainians has faded away.
The optimism that followed the Orange Revolution has faded for many Ukrainians. Economic growth has slowed and prices have risen.
One of Mr Yushchenko's key pledges was to fight corruption instead he himself has faced allegations of cronyism.
You see it very easy to say you will bring change but it is very hard to deliver one.

Remember the great elation that greeted the crowd at Uhuru park in 2002 (many people actually thought change has come) and the great pain that followed. It would just have been repeated if Raila won Dec07 election. I think people have to learn not to rely on these politicians. Politicians are liars and they are in parliament because of lies. If you are not a liar you cannot be a politician. Period!
And why do people in Kenya take politics so personal? It’s like a religion. Don’t people have a life or dreams in their lives?

Anonymous said...

Watch Kenyans and civil society on Grand Regency saga as it continues to unfold:) a plus for them- now kenyans are awake


http://www.youtube.com/watch?v=HV7kt1P2qSo

Anonymous said...

Grand Regency- question period!! no more committees- just actions Kenyans tell Raila- no Grand Regency no Raila- kibaki is walking to Othaya

Raila should know a coalition is at the pleasure of Kenyans-

Kenyans have decided- if coalitions continues with corruption then - they do not need a corrupt coalition government!!

http://www.youtube.com/watch?v=x137Pb2JAAs&NR=1

Anonymous said...

Kwale

Please, the Ukraine biz is getting old.

Its Kenya, the problems are Kenyan, the MPs are Kenyan, the solutions will be Kenyan, the shame will be Kenyan, the outcome will be Kenyan, the happy people will be Kenyan, the dissapointed guys will be Kenyan (and perhaps some Libyans)

Kenyan bro, Kenyan

UrXlnc

Anonymous said...

Kenya has changed

we might be seeing a better parliament than never before.
As things stand,impunity is being fought, not by the Pumbavus of Kenya b ut the Mps.
Change take time, but Kenyas is taking it well.
Imanyara has proved himself a change agent.

By 2012, Kenya, maybe getting back to the people and not to those who were presumed to be a "preserve".as Karua has since confirmed to us.
what a show.Karua is now herself and, like it or not she belongs to the class of the pro change legislators.Of course after realizing that those she was blindly fighting for have no regard for her.The Duly Erected has a history of not remembering supporters.Ask Karua.
If what is happening in parliament is big, what is happening in central province is monumental.

All this can only be good for Kenya

watch the space

Anonymous said...

Hehe. Interesting times indeed. On the good side, atleast KALOOZER has been exposed as the spineless chameleon that he is, having the audacity to defend Kimunya. Again by watching this loozer in parliament tday, I realized just how insignificant and meaningless the position he holds is(leader of govt. business). Is that all it is, just being a delivery/errand boy, taking MPs queries to the various ministers?

Vikii said...

I second you on that UrXlnc. Giving examples elsewhere is perfectly OK BUT we have to diversify those examples. Goodness,the world is bigger than Eastern Europe. Try Venezuela, Pakistan, the United States, South africa and many other countries whose populations are disgruntled after having been promised heaven.

Anonymous said...

Who is Orange South Africa company based in south Africa??(a few Kenyans)


This is the arab guy who has his hands in the cookie jar with elite kenyan mafia.

charbel abou-jaoude ceo & president

investments metal & recycling company p.o.box: 4520 safat 13045, mrc
tel: +965 – 4577774 fax: +965 – 4672168
labco 102 sulaibia craft area six ring road opposite the main entrance of agility head office. Sulaibia area. Kuwait.

Alcazar capital limited park place
building level 9, suite 904-905
sheikh zayed road p.o. Box 506672
dubai, united arab emirates
telephone: +971 4 706 0300
fax: +971 4 329 6967

then orange east africa based in south africa(own 51%) of telecom kenya)- kenyans were really duped- guess who owns orange east africa??
ask kimunya, muthuria- governor of central bank and a few pnu cronies?? why are kenyans asleep??

follow this link and read the alcazar capital limited may 2008- financial statement posted why are kenyan mp’s confused?? all the paper trail is out there on who owns majority telecom shares(kenyans own them)

read who is who and- orange east africa ltd in south africa owned by kenyan elite group guess who?? read alcazar capital limited may 2008 financial statement - who owns 51% share holding of safaricom

http://www.agilitylogistics.com/en/e...1-08%20eng.pdf

Anonymous said...

Ndugu Zangu,

For once kumekuchans have agreed to the last person. Kimunya should go, the last several commentaries have made it clear that we are united on this.

Good bye Kimunya - You are bright chap, but the way you handled Grand regency made you look mediocre. Am not sure Kenyans shall shed tears. You boxed yourself right into it. In Kikuyu we say " muugi ni mutaare" Brother Kimunya jenga taifa from the backbench.

Mzee wa Kijiji

Anonymous said...

Grand Regency, De La Rue Scams

phase 1 - corruption expose - done
phase 2 - parliamentary censure - done
phase 3 - probe committee (oh lord) - in progress
phase 5 - resignation / intransigence - ??
phase 6 - action by PM and / or Kibaki - ??
phase 7 - final assessment

keep us posted folks

UrXlnc

Anonymous said...

oops Phase 4 - kimunyas position or defense of transaction

Anonymous said...

Kwale you seem to exhibit not even a basic understanding of the purpose of government and the reason why a government exists in the first place-i can't believe you actually asked why people in Kenya take politics so seriously? my brother it is the same reason people anywhere in the world take politics seriously-i know you are in the diaspora and that is why you are beguiled into thinking those people out there are not interested in how their countries are governed but for your own sake i beg you refuse to be decieved by the strong currency in your adopted motherland Britain-the people out there care just as much as Kenyans care how they are governed

Mwarang'ethe said...

Kwale, asked:

And why do people in Kenya take politics so personal? It’s like a religion. Don’t people have a life or dreams in their lives?

Our comments:

We do take politics seriously for the following reasons. Politics decides/means the following:

(a) Who will eat and who will sleep hungry.

(b) Who will go to school and who will be illiterate.

(c) Whether my Mama will get proper medical care or not.

(d) Whether we have potholes on our roads or not.

(e) Whether Grand Regency will be stolen from Wanjiku by a few.

Need we go on?

Vikii said...

Anon 10.02: "....Imanyara has proved himself a change agent."

I thought he proved himself more than 15 years ago by not just burning flags at Kamukunji but also representing in court, without pay, political prisoners like Raila and Kamau Kuria.

Did our world just start or what?

Anonymous said...

Mwarang'ethe

I second that. And to further clarify

Its not kenyans that are obsessed with politics, we (most of us at least) never cared but these politicians have interfered with everything and messed up almost all private and public institutions with undue influence. A policeman can arrest you because you look wrong at Kalonzo, and you will be released in 15 minutes if Saitoti picks up the phone (and is still in good graces with the powerbrokers). Until the executive read President, Cabinet, MPs, Councillors, Administration can demonstrate that there will be good and accountable governance, we will make it our business to engage then in each and every step of the way. Its not politics, its our future. Its not us dabbling in politics, its politicians messing up our lives with shoddy policies, cronyism, nepotism, ineptitude, corruption, skewed resource management, marginalisation and a host of other ill intentioned activities. Correct that, and I'll be happy to post here about Ukraine

UrXlnc

Anonymous said...

Grand Regency is actually worth less than the KSh 1.8bn that Orengo claims it was bought for

TPS Eastern Africa has a market value of KSh 7.62bn (see Tuesday's Nation), sales of KSh 3.91bn, and earnings of KSh 416.48m (see annual report below).

http://www.serenahotels.com/company.htm

That's a net margin of 10.65% and a P/E of 18.3. According to Trip Advisor, the hotel has 194 rooms and average daily rates of $275 per room.

http://www.tripadvisor.com/Hotel_Review-g294207-d305105-Reviews-Grand_Regency_Hotel-Nairobi.html

Assuming that the hotel operates at 100% capacity, 365 days a year (wishful thinking even during the 2007 boom), and has the same net margin as TPS Eastern Africa (wishful thinking considering the negative customer reviews on the above link), it'd have earnings of KSh 134.81m a year (275 x 65 x 194 x 365 x 10.65%). Multiply that by the P/E of TPS Eastern Africa and you have a valuation of KSh 2.47bn. So where does the ISK valuation of KSh 4.5-5bn or the valuation of KSh 7-7.5bn given by some politicians and the press come from? The ISK is wrong just like how they're wrong about a 3br flat in a nice Nairobi area being worth KSh 11m while the reality is that they're actually changing hands at KSh 6-6.5m.

Even if the hotel was bought at KSh 1.8bn as claimed by Orengo, that price assumes operating at a 73% average capacity per annum which is still wishful thinking because of the post-election slump, the lousy customer reviews on the Internet (see above link), and the noisy CBD location.

All that glitters is not gold and this applies to luxury hotels. I'll give you an example. Let's say 2 people each buy the same acreage of land on the same street, at the same time, and at the same price. They then each spend the same amount of money at the same time except that one constructs a luxury hotel and the other an office building. Which is more valuable: the office building or the luxury hotel? The office building. Why? Because the number of people able and willing to buy a luxury hotel are a tiny fraction of the number of people able and willing to buy an office building. So basically the handful people able and willing to buy a luxury hotel call the shots even if the seller places dozens of very expensive adverts in top international business newspapers and magazines like The Wall Street Journal, The Economist, and The Financial Times. That's a painful reality that's worsened further if the luxury hotel is located in a noisy CBD. Wadosis like Gates and Branson don't stay at the Grand Regency when in town. They stay at the Giraffe Manor and the House of Waine in Karen coz they need to unwind, something that's not possible when you're staying at a hotel in a noisy CBD.

Anonymous said...

to 11:37 AM

so to your WARPED KIKUYU-PARTISAN thinking, the plot owner near the edge of a main road will have Less Value than the plot owner deep in the bushes 6 miles away?

wow!stooping and bending facts all because of kabilas? GEma man, why?

Vikii said...

10.44, why dont you counter 10.37's arguements with solid facts and objective questions instead of this stupid Gema/Kikuyu accusation corner most of you run to hide? There are legitimate questions you can throw at him. How did you know he was kikuyu? Ours is fast becoming a country of dunderheads and hecklers.

This guy has given you a link to the financials of TPS and explained the assumptions he makes in his arguments. Someone who knows anything beyond kikuyu this kikuyu that, would either question those assumptions, the authenticity of the financial statements, the rationale behind the secrecy preceeding the sale instead of stupidly passing judgement on one's tribe. I just want to hope that some of you are smarter than what you write.

Anonymous said...

links to what?

valuation of a hotel is not merely by location (ati noise)

are you telling me a hotel in deep bundus in romford outside london is more expensive than a hotel on grovensors avenue in central london?

go lie to the GEMA birds. ok!!!

GACHORA- we know its you. we saw your article on the nation business daily section. Wacha ujikaange na mdomo yako. Ati a valuation expert. Wacha we google.

Hehehehehehe

Anonymous said...

kimunya kajikanga na mafuta yake mwenyewe. fools die,

Anonymous said...

kimunya kajikaanga na mafuta yake mwenyewe. fools die,after all the previous scandals at the treasury did he think he would get away with it just like that? shame on you Kimunya and your fellow collaborators. you were used but there has to be a sacrificial lamb somehow. you gotta be smart next time.

Anonymous said...

corruption is not just about the stated inflated or reduced market vlaue quantities and amounts but also includes methodology used e.g vested interest or popularly known as conflicts of interest as well and other such. much emphasis has been placed on the value of the hotel and exactly how much money changed hands, and where did the money end up. for instance in the event of a refund, where will that come from?

my question is, dont we have bodies and institutions that are supposed to carry out this work, why is a minister getting involved in these details. how did kimunya become the auctioneer? the privatisation bill that kimunya has dragged his feet on for 3 years and the investment committee or whatever the body that esther koimett heads should have handled this affair i.e CBK should have handed over to it and kimunya, ringera, ndungu etc would not be where they are today. its this meddling and taking over the running of roadside kiosks by ministers and MPs that is dangerous and irresponsible.

Anonymous said...

Vikii, pole dada, you are better than lossing your cool on this. SOme posts here do not deserve any comments. I do not want to blame tribes. But I want to take issues with individual Kenyans. Amos Kimunya et al are guilty till provrn otherwise in the court of public opinion. I will be the last human being to defend corruption be it my brother or sister.
But here, Kimunya said that this deal was done between presidents... so isn't Kibaki also guilty as alluded by Kimunya? ANd what about Mzee aaron Ringera, Prof. Njuguna Ndungu and ever smiling old man Amos Wako? They were a sleep when Kimunya was stealing from us.
Finally, show me your friends and writings and I will show your intellect!

Anonymous said...

rather interesting this

http://www.nationmedia.com/dailynation/nmgcontententry.asp?category_id=1&newsid=126503

the verdict is in

but the investigations have just started

http://www.nationmedia.com/dailynation/nmgcontententry.asp?category_id=1&newsid=126497

the bright side is that impunity will not be tolerated,

the downside, is this probe committee has been overtaken by events

as always groundwork has been done and buck has been pushed to stop at the desk of .... for further (in)action

UrXlnc

Anonymous said...

I am not sure that Kimunya has fulfilled his pledge. When he took over from Mzee DAudi Mwiraria, the young Amos promised that they would never be a scandal under his watch! Wala! What about this one Amos?
And Amos told Raila that NSE is not a fish amrket! That was childish dig! What about this is it waru market - GR? Who has the last laugh young Amos?
Mmmmmm. Time will tell!

Mwarang'ethe said...

Anonymous @ 11:37 AM, said:

Grand Regency is actually worth less than the KSh 1.8bn that Orengo claims it was bought for

TPS Eastern Africa has a market value of KSh 7.62bn (see Tuesday's Nation), sales of KSh 3.91bn, and earnings of KSh 416.48m (see annual report below).

Our comment:

Well, we have seen thy message that you have been trying to push down our throats.

However, we are not interested because it amounts to nonsense. Why so? Because, thou forgeteth two things.

(a) There is no "right" price for anything. The "right" price is what a fool is willing to pay based on his/her perceptions.

Thus, the only way to confirm the "right" price is having the sale in an auction.

(b) You are forgetting that there are laws that MUST be followed in disposal of public assets. Thus, what is of concern to RIGHT THINKING PERSONS,is not just the price, but, also the legality of the sale.

Is that so difficult to appreciate Sir?

Anonymous said...

More revelation on grand regency. Watch this
http://www.youtube.com/watch?v=_xA8RiK69-0&feature=user
Thanks

Phil said...

Vikii, now that you have arrogated yourself attorney for anon@11.37, is it in order (excuse my parliamentary language, I was glued the whole afternoon) for anon to claim that "Assuming that the hotel operates at 100% capacity, 365 days a year (wishful thinking even during the 2007 boom), and has the same net margin as TPS Eastern Africa (wishful thinking considering the negative customer reviews on the above link), it'd have earnings of KSh 134.81m a year (275 x 65 x 194 x 365 x 10.65%)" when we all know that these tourist graded hotels generate more revenues from banquets and conferences then from room occupancy?

Apart from that obvious fact, Grand Regency, like all five star hotels, has different type of rooms charging varied rates. The hotel's presidential suites have proven quite popular that they are literary occupied throughout the year, and sometimes government of Kenya is forced to evict some guest and pay for their accommodation elsewhere because state guest must occupy suites at GR??

Further, the GR hotel mints funds from its 5 star laundry shop which is the most popular dry cleaners in Nairobi of all hotels, and failure to collect your clothes on the agreed date, they are sent for storage outside the hotel precincts for lack of space? Plus the popular outside catering and secure long-term car parking?

Is it in order for your associate ANON to ignore these significant revenue sources and concentrate of standard room occupancy rate only?

If Anon lives in Nairobi he will be aware that most commercial office blocks in the city like Anniversary Towers and neighbouring blocks have been taken over by small traders in stalls and 'exhibitions'. This is primarily because Kibakinomics conditions have rendered white collar SME's operations too difficult to sustain and office space is NO LONGER in demand with rent rates dropping to as low as Kshs. 35/- per square foot.

You will agree with me, numerous previously high-end Office blocks are now a pale shadow of themselves hosting 'exhibitions' while on the other hand new tourist class hotels are coming up in the CBD, Westlands and Mombasa road (PANARI) and it is virtually impossible to get a room in these hotels without advance booking. By this I mean; getting a hotel room in Nairobi with ratings from New Rwathia Boarding & Lodging on Ronald Ngala to upmarket Serena on Kenyatta Avenue on any given weekend is practically an impossibility without prior booking.

Kindly spare us the diaspora theories. Come to the ground and experience it first hand. It is useless to publish text book theories from the so called London Schools of Economics that we all know have made life impossible in Kenya for the last 5 years through runaway inflation rates brought about by Kibakinomics.

There is simply no way a running Grand Regency Hotel can be of less value than a similar size Office Block in the same locality. Hiyo hesabu hai ingiani, manze.

Anonymous said...

CHRSI STOP DREAMING , KIBAKI IS NOT GOING TO DISPENSE KIMUNYA , THIS GIUY KNOWS MORE KIBAKI SECRETS THAN LUCY HERSELF.I WILL GIVE YOU THE SCENARIO OF HOW THEY WILL BURY THIS SCANDAL , FIRST OF ALL KIBAKI WILL USE RAILA BY ALLOWING HIM TO USE SOME OF HIS ILLUSIONAL POWERS , WE HAVE SEEN WHAT TINGA HAD TO SAY TODAY , FEW WORDS BUT SPOKE A MILLION WORDS ON THE DIRECTION THIS WHOLE SAGA IS GOING TO TAKE.RAILA WILL SAY THAT BASED ON THE EXCLUSIVE FACTS THAT HE DID NOT PREVIOUSLY HAVE , THE "COMMISION OF THUGS" HAVE FOUND NO IRREGULARITIES ON THE PART OF THE MINISTER , A FEW WATU WA MKONO MAY FALL BUT NOT THE GOLDEN BOY.YOU HEARD HIM IN PARLIAMENT WASHING HIS HANDS CLEAN AND PASSING THE BUCK TO JUNIOR OFFICERS CLAIMING THAT HE NEVER ATTENDED ANY MEETINGS OR DOES NOT KNOW "THESE PPLE'.RAILA WILL THEN TABLE THE VALUATION OF THE HOTEL , AND YES IT WILL BE HIGHER THAN THE PRICE OF 2.9 BILL BUT HERE IS THE BOMB , "THE HOTEL HAS BEEN RUNNING LOSSES SINCE ITS COURT BATTLES AND WAS DEEPLY IN DEBT TO LOCAL AND INTERNATIONAL BANKS , THE LIBYANS BOUGHT THE DEBTS ALONG WITH THE PROPERTY AND THESE DEBTS WERE OFF SET FROM THE QUOTED PRICE OF 2.9B OTHER WISE THE HOTEL TECHNICALY WENT FOR SOMETHING CLOSE TO HE VALUED AMOUNT , END OF STORY.I AM A TINGA MAN BUT I WAS DISSAPPOINTED IN HIM FOR WATERING DOWN THE LANDMARK DECISION BY PARLIAMENT , IF HE IS A TRUE DEMOCRAT THEN HE SHOULD KNOW THAT IN AN IDEAL DEMOCRACY LIKE THE ONE E ARE PURSUING, THE THREE ARMS OF GOVT SHOULD BE EQUALY POWERFUL , BECAUSE WITHOUT THAT THEN THE EXECUTIVE EXCESSES CAN NOT BE CHECKED AND VICE VERSA.

Anonymous said...

Step aside, says Wako team

Published on July 3, 2008, 12:00 am


By David Ohito

Finance Minister Amos Kimunya, Central Bank Governor Njuguna Ndung’u and Director-General of the National Security Intelligence Service ... Gichangi should be directed to step aside — that is the verdict of a probe team constituted by Prime Minister Raila Odinga over the sale of the Grand Regency Hotel.

The other public official who should also step aside to allow for investigation is the Secretary of the Board of Directors of the Central Bank, Kennedy Abuga.

The committee report also recommends the repossession of the hotel at the heart of the grand scam.

A source close to the one-day Wako committee of prominent lawyers told The Standard that the Central Bank could be ordered to cancel the sale of the hotel reached on May 5.

The team said the transaction over the sale of the Grand Regency Hotel was fraudulent and designed to deceive.

It should, therefore, be declared null and void, the team resolved, according to the source.

And the team was told of how the Registrar of Titles and the Commissioner of Lands were intimidated into assenting to the deal, said the source.

And in even more confounding revelations, the source said that the team was told of how the parties in the deal evaded payment of stamp duty.

The report of the Wako team was being presented to the Prime Minister last night, and was to be forwarded to President Kibaki.

When presenting the dossier, Attorney-General Amos Wako told a media conference last evening that the team had unearthed information much more than what was in public domain.

The team of legal experts, chaired by Wako comprised Cabinet ministers James Orengo and Mutula Kilonzo, Kenya Anti-Corruption Commission Director Aaron Ringera and Mr Caroli Omondi of the PM’s office, tabled the report that sources said recommended the recovery of the five-star hotel.

Sources claimed salvos are now directed at the Central Bank of Kenya Governor Njuguna Ndung’u for allegedly flouting the rules and laws of Government.

Kenyans will now see which public officer packs and leaves office over the Grand Regency saga.

The findings, the impeccable source said, pointed an accusing finger at a top National Security Intelligence officer who allegedly proposed a settlement on the matter.

In a Press briefing last night, the PM said the fate of the report would be made public after a crucial Cabinet meeting to be chaired by President Kibaki today.

A source privy to the details of the day-long meeting said the sale contravened the Privatisation, the Public Procurement and Disposal and the Government Lands Acts.

The source said it is believed that the Government may revoke the controversial transaction that stirred a storm across the political divide and threatened the three-month old grand coalition.

Sources said Ringera, a member of the committee, wrote a letter advising Central Bank to follow due process of the law in disposing of the hotel.

"A lawyer, Ms Muthoni Gichohi, the advocate who drafted the sale agreement on and behalf of CBK, is understood not to have done any work for the Bank and her inclusion in the panel was not okayed by the Attorney-General as required by law," a source said.

It is believed the Lands minister may stop the transaction or cancel the title all together.

Last night Orengo declined to comment, saying: "I am under instruction not to divulge any information until the principals, Kibaki and Raila, give direction. But I can assure the public that we did a splendid job within one day."

As the details of the transaction filtered through, it was understood that no due diligence was done on the purchasers and no written records of offer and acceptance were available.

A search at the Registrar of Companies for the file containing incorporation documents of the Libya Arab African Investments Company Kenya Ltd did not disclose a relationship with the Libyan government.

Mwarang'ethe said...

Phil said:

Kindly spare us the diaspora theories. Come to the ground and experience it first hand.

Our comment:

Well, the anon's theories are not from diaspora. They are theories of watu wale vichwa vimeenda kombo as Moi would say.

Anonymous said...

I made the 11:37AM post.

To 12:03PM, thanks for the support.

To 11:44AM and 12:26PM

The most valuable square mile in Africa is in Sandton, the Westy of Jo'burg, and not in Jo'burg CBD. What happened was an exodus by moneyed companies from Jo'burg CBD to the suburb of Sandton.

http://www.engineeringnews.co.za/article.php?a_id=134773

So CBD land isn't necessarily the most valuable land in a city. In Nairobi, there has also been an exodus by moneyed companies from the CBD to Upper Hill and Westlands. Safaricom, the most moneyed of them all, set up HQs in Westy and not in the CBD. Recent moneyed investors like Google, Renaissance Capital, and Ericsson also set up HQs in Westy and not in the CBD.

A Kenyan investment banker in the States wrote in an article in Business Daily Africa:

"An asset-based valuation, must take into account the opportunity cost of the land. In a lot of cases, a bare piece of land is typically valued a lot higher than one on which a building rests.

The reason being, the buyer is restricted to the existing use of the land, (as opposed to the most profitable use of the land) and the cost to return it to bare land is enormous."

http://www.bdafrica.com/index.php?option=com_content&task=view&id=8556&Itemid=5844

Anonymous said...

dannganya wengine bwana. sandton is itslef a CBD outside JoBurg

its like comparing westlands and CBD.

CBD is high value. so is westlands.

Anonymous said...

good point. upper hill is not CBD but is high value.

makret rates for upper hill, wesltands, CBD and gigiri should almost be equal or very close.

location is a none-starter.

Anonymous said...

To Phil

According to the receiver-manager of the Grand Regency, the hotel made a profit of KSh 143m in 2007.

http://www.bdafrica.com/index.php?option=com_content&task=view&id=8556&Itemid=5844

That's actually close to my estimate of KSh 134.81m. So all this talk about the hotel making shiploads of profits from presidential suites, laundry, conferences, banquets, etc. is hot air.

Secondly, the whole idea that it's difficult to get a hotel room in the CBD during the weekend without prior booking is absolutely ridiculous. Kwani we're hosting the World Cup at the moment? Get real! You said:

"There is simply no way a running Grand Regency Hotel can be of less value than a similar size Office Block in the same locality. Hiyo hesabu hai ingiani, manze."

What I said was:

"Let's say 2 people each buy the same acreage of land on the same street, at the same time, and at the same price. They then each spend the same amount of money at the same time except that one constructs a luxury hotel and the other an office building. Which is more valuable: the office building or the luxury hotel? The office building."

If you read carefully, you'll notice that I talked about similar construction costs, not similar sizes.

Finally, I'm not in the diaspora. I live in Nai and I love it.

Anonymous said...

How do MP's vote no confidence, before a committee finds him guilty? Just wondering, because isnt the parliamentary procedure to wait until the committee submits its verdict? And they haven't begun?

Anonymous said...

how dis MP's vote before duyring the karanja case?

read the legal books and bunge procesudresd before you show your GITHERI ingorance

Anonymous said...

anon2:52 PM

you made my night:) time to go to bed laughing:)

Mwarang'ethe said...

Anonymous said...
How do MP's vote no confidence, before a committee finds him guilty? Just wondering, because isnt the parliamentary procedure to wait until the committee submits its verdict? And they haven't begun?

2:50 PM

Our comment:

Parliament is an independent arm of the Government. It therefore need not wait for the Executive to act.

Anonymous said...

Mwarang'ethe
Incase you dont know the commitee was not a parliamentary one but an executive one , parliament in order to be independendent should not in any way ne obligated to ad hoc commitees created by the pm/prsident , kimunya has severaly snubbed the finance commitee in parliament over this issue it is a matter of chickens coming home to roost.And also some of the characters who have been mentioned in this transaction were in the same commitee , conflict of intrest , ie Ringera , Wako,

Anonymous said...

http://www.eastandard.net/news/?id=1143989521&cid=4

if these are govt funds why are they at NIC and not a govt owned or controlled bank

Anonymous said...

Excuse my githeri knowledge, that is why i have question marks at the end of every sentence, im not stating a fact, im asking im i or arent i right? Why dont you shut the hell up? The Cabinet sub-committee hadnt even finished their investigation, that was why i was asking you idiot of a thing!!!!! Does that make you feel better??? Inflate your ego??? Now im just being sarcastic you fool!!!!

Anonymous said...

Thank you for answering the question, unlike some people on this blog

Anonymous said...

Anonymous Anonymous said...

http://www.eastandard.net/news/?id=1143989521&cid=4

if these are govt funds why are they at NIC and not a govt owned or controlled bank

4:03 PM

I'M VERY SURPRISED THAT THE MONEY IS NIC BANK?? THIS IS A MT. KENYA BANK-NIC Bank merged, in November 1997, with African Mercantile Bank Limited (AMBANK)

J P M Ndegwa - Chairman
James Macharia Managing Director
L Murage Company Secretary
A S M Ndegwa Non Executive Dir
F N Mwanzia Non Executive Dir
F M Mbiru Non Executive Dir
G A Maina Non Executive Dir

So why would kimunya put Government funds in NIC?? what happened to central bank of kenya??

I sense mischief on this too-
MP's should question this transaction too why hide the funds in NIC/Ambank?? can someone tell kenyans??
or has Kimunya sold central bank of kenya too? so the government has nowhere to deposit money??

Anonymous said...

http://www.kenyatimesonline.com/content.asp?catid=2&articleId=1644

wow look at the crusaders against corruption.

hate to say we told you so, but there it is.

and please remember guys for every one such case that hits the public limelight, there are at least 20 to 40 others expertly executed to avoid publicity and at small but regular periods which are equally devastating.

Kudos to the 10th parliament for standing firm against corruption but who am i kidding here, we kenyans (you and i) are winning this war. these guys saw what happened to Mwiraria, Murungaru and others implicated in corruption, and they know we are watching and the next general election is not too far away. we may not have agreed on presidency but one things for sure, we all want to be rid of corruption

UrXlnc

Anonymous said...

the 40 days of this thieves looting public coffers are over:) two down more to come:)


Businessman Chris Kirubi and 11 other prominent personalities have been charged with an offence of fraudulently selling a property belonging to Uchumi supermarket for Sh147 million.
Businessman Chris Kirubi and 11 other prominent personalities have been charged with an offence of fraudulently selling a property belonging to Uchumi supermarket for Sh147 million.

The Director of Public Prosecution (DDP) Kiriako Tobiko told the court that Kirubi, a former chairman of board of director of Uchumi Supermarkets, the chief executive Kennedy Mbugua Thairu, Francis Emmanuel Oyugi, Joseph Munyiri Munene, Kezzy Wanjiku, Isaac Awuondo with other accomplices sold the property located along Aga Khan Walk at a lesser price.

Others charged with Kirubi include Nigel Ralpi Pavitt, Stephen Njoroge Waruhu, Deepak Kantilal Shah, Atul Rachand Shah, Amin Akbekali Manji, Shamashi Habib Manji and two companies registered as Allgate and Lyoyd Masila Limited.

The DPP told senior principal magistrate Lilian Muketi that between March 2003 and November 2004, the accused conspired to defraud Uchimu Supermarkets of its property registered under LR No 209/7120 which they sold to Allgate Company Limited and then leased the same to the supermarket.

The said land was leased at Sh1.7m as monthly rent paid to Allgate Company Limited, said the property was sold without proper valuation and no open tender was entered. The court heard the company that was sold the land is associated with core suppliers of the Uchumi Supermarkets Limited. The prosecution said that no approval was obtained for the sale of the property which allocated within the central business district.

Save for Kezzy Wanjiku Muniu and Stephen Njoroge Waruhu, the rest did not appear in court to plead to the criminal charges. The court released them on cash bail of Sh400, 000 each. The trial court issued summons for them to appear on June 13 and there be a mention on June 20, the two who did not appear in court were represented by Mutula Kilonzo Junior.

Kirubi will face separate account that on June 2004 at the Uchumi Supermarkets boardroom in KNTC building being the chairman of board of directors he breached the trust bestowed upon him.

Anonymous said...

All I can say is thank God ODM did not get that ministry. ODM would have been framed!!!

Anonymous said...

In keeping with the tradition of Kibaki only having Mt Kenya Mafia holding the finance portfolio - Uhuru Kenyatta will be the next Finance Minister. Prof Ndungu will be replaced by yet another Kikuyu - na kazi inaendelea.
Regean - Butere.

Anonymous said...

All,


This post is in reposne to this article that appeared today in the Business Daily section of the Nation purpoting to shed some professional angle on "Hotel Valution" as regards the Grand Regency Hotel saga.

http://www.bdafrica.com/index.php?option=com_content&task=view&id=8556&Itemid=5844


Lets all be clear about one thing. The Grand Regency Hotel is not a motel and neither is it just one of the simple basic or economical hotels. Its not a facility thats less than the averages global valutaiotn of standard basic hotels (US$ 10million). The Grand Regency is one of Nairobi's premier hotels and it stands on valuable land on CBD, access to major roads, close to linkages to airports and exists and with fantastic property development and profile around.

Now Some hot-shot financial analyst living in the USA has given some peni-mbili op-ed's on how the GRH may be what it was sold. What shocked some of us is his reliance on "room valuation technques" and complete ignorance of "goodwill value".

But lets ask a simple question? How do you do a hotel valuation? what happens in other parts of the world? well here goes some simple resources to give you an idea.

1) http://www.sckiaao.org/files/3-Valuation/3AB-Wilmath.pdf


2) http://www.mainlinefunding.com/hotel.html


3) http://www.hotel-online.com/News/PR2002_3rd/Jul02_CanadianOutlook.html

4) http://www.solmelia.com/solNew/pdf/financials/English/VALORACION_RICHARD_ELLIS_INGLES.pdf

5) http://www.hvs.com/Bookstore/HotelValuationTechniques.pdf

6) http://www.reading.ac.uk/REP/fulltxt/0205.pdf

7) http://www.hotelexperts.de/upload/documents/flyer_02_eng_internet.pdf

8) http://www.hotelinteractive.com/index.asp?page_id=5000&article_id=5384

9) http://www.fig.net/pub/fig_2002/Ts9-3/TS9_3_dargere.pdf

10) http://www.hospitalitynet.org/file/152003389.pdf

Now when someomne who claims to be a senior management profesional in the investment sector downloass this report from Hospitality Trends (which focusses on small-medium LODGES) below ...

http://www.hotelnewsresource.com/pdf/Hotel_Valuation_and_Transaction_Trends_For_the_U.S._Lodging_Industry.pdf

... and then rushes to pen some HALF BAKED ideas of how Grand Regency Hotel should be valued, it shows a complete sense of understanding and approach of a professional nature. All sacrificed at the altar of ETHNIC KINSHIP.

By the time you are through with the sources give and the misrepresentations of the BD-Artilcle one will realize that this someone who works in a BANK (Private Consumer Bank) and is a numbers, analysis cruncher of securities WITHOUT any background of Land Economics or Real Estate is shooting to far to seem like he is an authority on Land Valuation.

Its laughable that when you google you realize this character was a technology major before embarking onto a a career in financial sector.

Does this character own a hotel? not known? is he working in Hotel sector? No! Is he educated academically and professionally on real estate and hotel management? NO!

Well- there goes that TRIBAL ANGLE again. Always seeking to rationalize and defend on the basis of tribe or regional preferences. 13,000 miles away and still stuck to this shyte.

Mm

Anonymous said...

Charles.Nairobi.
Here people are talking of just 2 billion.Grand regency!
Hear this from the herald in Zim.
THE cost of rentals in most high-density suburbs has risen beyond the reach of low-income earners, who are earning between $80 billion and $150 billion.
The central bank has issued a 500m Zimbabwe dollar banknote, worth US$2, to try to ease cash shortages amid the world's highest rate of inflation
A 2 litre bottle of cooking oil, 20 kgs of maize-meal and 2 kgs of sugar are pegged at $200 billion, $160 billion and $50 billion respectively.

Anonymous said...

He he he! Am glad we are beginning to hear resounding NO to impunity. The way this "sale" thing was handled left a lot of questions. Why had it to be secret to begin with?

Mcheku said...

Anon 9.08, I dont think so at all, you see the only reason this thing has come to light is the exposure by done ODM, and I believe that before anyone ever did get a chance to frame them, they would have already squealed everything they know to the birds I tell you, that is the plan I believe. In fact I believe if they were given that docket, this Libya thing would have been the least of our worries, am sure there are mega-scandals in Kimunya's docket just waiting to be unearthed!

I have to say today I am currently enjoying the debate here on kumekucha so power to all you kumekuchans and more power to Orengo Jimmy!!

Anonymous said...

I'm so sick and tired of people blaming Kimunya over this scandal. The man was just doing his master's bidding. All this anger should be directed at President Kibaki. He's the one behind the scandal - He took over as patron of grand corruption in Kenya after Moi left office.

Anonymous said...

Mandela served one term.

Mwarang'ethe said...

Anonymous said...

Mwarang'ethe
Incase you dont know the commitee was not a parliamentary one but an executive one , parliament in order to be independendent should not in any way ne obligated to ad hoc commitees created by the pm/prsident ,

Our comments:

Why don't you read our comments before you hit the key board?

Anonymous said...

Chris - you had promised new relevations about Tom Mboya. Did you read the today's article in the Standard by Douglas Okwatch linking Mboya to the CIA - having been encruited and paid by them?
The article is based on declassified letters and it seems also Pamela Mboya knew about this and that's why she asked Kofi Annan to start new investigations on the real background of Mboya's killing.

Anonymous said...

I liked the below comment about the 'proffessional' valuer, from some anon.

"Well- there goes that TRIBAL ANGLE again. Always seeking to rationalize and defend on the basis of tribe or regional preferences. 13,000 miles away and still stuck to this shyte"

I pray that one time we shall slay this tribal thinking. I am sure if anything was pocketed out of this deal it went to an individual pocket and not the tribe!!!!!

Anonymous said...

Chris, this is not related to the topic; but my query/concern is whether the PNU/NSIS mafia got to your website? Jana and juzi was going through the read when noticed as strangely pro-Kimunya / PNU theme in all the articles. There was also a different writing style, kind of bland and monotonous like the Mutua press monologues. Please clarify.

Anonymous said...

Sasa kila mtu amesahau IDP's and the amnesty issue to discuss a hotel. Which of the two is more important?

Anonymous said...

Anon @ 10:18PM

Why don't you give us your valuation of the Grand instead of just badmouthing the valuations in the BD Africa articles below?

http://www.bdafrica.com/index.php?option=com_content&task=view&id=8556&Itemid=5844

http://www.bdafrica.com/index.php?option=com_content&task=view&id=8558&Itemid=5844

And I pose the same question to other posters whose work is to trash other people's valuations without offering theirs.

Anonymous said...

Haiya! guys here really belive Kimunya will go??? ngai baba.. go for what? Ruto et al are still in office despite being ring leaders of corruption in nyayo era..kimunya has done nothing to that scale pls dnt be duped by bored, attention seeking mps who have nothing better, to do with their time.

Anonymous said...

GO Die you ihii, Kikuyu hater.You guys are the pillars of tribalism no matter what.

I think you should fuck off and leave us alone

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