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Safaricom’s plan to name new CEO dashed by Collymore’s sudden death

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Safaricom had already settled on an outsider to replace Bob Collymore and was preparing to make the announcement but the plan was scuttled by his sudden death.

Insiders say the firm was going to unveil a new boss before the end of the month, and was preparing to lift the remaining hurdle of convincing the government to accept its candidate.

“That plan died with Bob. There was going to be a new CEO by the end of this month,” a source familiar with the succession intrigues said.

Should the firm fail to have its way, it could confirm Michael Joseph as its substantive chief executive in order to buy more time to deal with the succession headache.

Succession intrigues at the firm began last year after a board meeting at the head office in

Westlands.

Immediately the shortlist was finalised, the directors of the firm listed on the Nairobi Securities Exchange (NSE) started receiving calls.

Sources said the calls came from a State House operative, who was keen to “remind them” to stick to Kenya’s position on the matter.

Before the phone calls, the firm, the most profitable private company in East Africa, had narrowed down to potential successors and the directors were scheduled to vote on the most suitable candidate.

But the process was not entirely in line with an agreement Kenya had with the firm’s largest shareholder — United Kingdom’s Vodafone — on who was to have the final say when the time came to replace Mr Collymore.

The Safaricom board meets at least four times a year. Before each meeting, comprehensive board papers are prepared and circulated to all the directors for all substantive agenda items at least two weeks early.

READ ALSO:   Michael Joseph: Why I chose Bob to succeed me

This allows them time to review board documents to facilitate effective discussions. The submissions and notification period may be waived should an urgent or critical matter arise within the two weeks before the meeting.

Before 2017, the appointment of the firm’s CEO and the Chief Finance Officer (CFO) was the preserve of Vodafone Group PLC, which owned a 40 per cent stake through Vodafone Kenya Limited (VKL), a company registered in Nairobi.

But in 2017, Vodafone wanted to sell 87.5 per cent of its shares to its South African subsidiary, Vodacom. This represents a 35 per cent stake in Safaricom. But the government of Kenya would have none of it.

It blocked the deal until the firm accepted to make some concessions on the ultimate decision making at the firm, given that, broken down and without combining their stakes, Vodacom would own 35 per cent, equal to what the Kenyan government held. Its parent would then be left with 5 per cent.

But that is not how companies work. In times of making decisions, parents and their subsidiaries are always treated as one entity, and this meant that the British firm still controlled the 40 per cent stake through South Africa.

But its shareholding structure remained the same in its books.

Vodafone Kenya Ltd remained with 40 per cent, remaining the top shareholder. The second is the government of Kenya, which owns 35 per cent, while thousands of retail and institutional investors listed at the NSE own the remaining 25 per cent.

READ ALSO:   Secrets from the grave! Juliani opens up about Bob Collymore

Despite being a private company, Safaricom had become too important to the country’s

national security that the government wanted to make sure it had a say on important national interests. The National Treasury had already flagged its successful mobile money platform, M-Pesa, as a potential risk to the economy, if it collapsed or something were to happen to it.

But Vodafone was looking at a different set of risks, should the government have its way. Besides qualifications, the firm identified political risks as one of its major considerations in sourcing for its next chief executive.

Divisive politics have come with big risks to its business, and it needs to settle on a candidate seen as neutral, who will not be controlled by the State during elections. But desperate to sell, the Vodafone Group took a step back and reluctantly agreed to the conditions.

This set in motion some of the events that would see the company amend its articles of association at its Annual General Meeting (AGM) in September, 2017.

One of the changes ratified was to expound the definition of Vodafone Kenya Limited (VKL), to include its subsidiary or its holding company or any subsidiary of such a holding company, notwithstanding that VKL may change its name from time to time. It also made changes to its boardroom size. Unless and until determined by a special resolution of the company, the number of directors (excluding alternates) shall not be fewer than seven or more than 10. This includes the independent, non-executive directors who must be Kenyans.

READ ALSO:   I continue to love you - Wambui Collymore’s birthday message to husband

Predominantly Kenyan character

However, it is the third amendment that will have the biggest bearing on who calls the final shot. The firm said that, for a number of important matters, among them the appointment of its CEO and chief finance officer, such a resolution would only pass if it got more than 75 per cent of directors’ votes. What this meant was that without the votes of the directors representing the Kenya government, it would be impossible for Vodacom to have its way on the board.

In another resolution that anticipated the latest developments, the company asked shareholders to allow the board of directors to appoint one of its members to the office of managing director or manager “for such period and on such terms and with such powers, and at such remuneration as they may think fit”.

This came in handy last week, when the firm appointed its former CEO, Mr Michael Joseph, who was serving on its board, to the position of interim chief executive.

The AGM also passed a resolution that the “directors shall encourage the retention of a predominantly Kenyan character in the senior management and executive committees of the company”. It also scrapped the position of the ‘deputy chairman’ and all references to the term in the company’s articles of association. Instead, it passed the amendment that the directors may elect a chairman for their meetings, who shall be a Kenyan, and determine the period for which they are to hold office.

Source:Daily Nation

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Business

VIDEO: Bonus Value Add for Garden of Joy customers

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Finally, it’s all joy for those who bought the Garden of Joy (GOJ). Optiven has pulled a positive surprise by kicking off the installation of hundreds of green solar lights along all the estate roads. The launch happened today when the GOJ was declared a green project.

The engineer installing this green energy friendly street lights lauded Optiven for being an Eco-friendly organization and openly subscribing to suitable development goals no 11 (Sustainable cities and communities) and no 7 ( Affordable and clean energy)

https://www.facebook.com/watch/live/?v=355584738838377&ref=watch_permalink

Among the guests who attended this event was Justina Syokao of the popular 2020 hit song.

The installation was packed with joy as the Garden of Joy joined other Optiven projects that have already gone green.

We urged all our customers to join the green movement by building houses that have natural light, use water recycling technologies such as bio digester, trees planting and managing waste.

This project is now ready for occupation and customers have already started building fast and furious

The plots are on offer at 1.295M up to the 30th October. The offer will be 1.495 from 1st of Nov

Secure your property today with only 200k and enjoy a 12 months installment plan

READ ALSO:   'Each new day takes me closer to you,' Bob Collymore's widow Wambui pens

If you want to join this green project, get in touch with us Today:
Phone: 0790 300 300 | 0723 400 500
Visit our Website for more details: www.optiven.co.ke

https://www.facebook.com/georgeoptiven/videos/355584738838377/
We were live at Garden of Joy.

Kindly click the link, share and let’s create engagement as we talk about how we can participate in the Green Agenda. #GardenOfJOYgoesGREEN
#OptivenGoesGreen

 

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I bought a car from an online bazaar, but it ended in tears

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Buyer beware! The sleek car that you saw on that online bazaar may not be on sale – but a ruse to rip you off.

Three buyers fell for this trap, hoodwinked by a smooth-talking ‘salesman’ who promised to help them upgrade their cars, in a saga that ended in tears.

And the victims had thought that because a lawyer was involved in the transaction, this protected their interests as well. However, the manner in which they lost their cash raises questions about his role.

The address was an office block in the city centre, where the sale agreements would be drafted, buyers would part with their cash and the seller would thereafter vanish into thin air without delivering the vehicle.

Since 2018, when one of the cases was reported, the victim is yet to recover his money, with the lawyer claiming he did not know the seller.

This year, however, two more people have fallen prey to the scam and it’s unclear how many more have been conned.

Wanted to upgrade his car

Earlier this year, Mr Kelvin Ngugi, 23, wanted to upgrade his KBX Toyota Sienta and, while scrolling through the internet one evening, he came across a dealer who identified himself as Mr Ronald Bundi on Jiji.ke, the online classifieds website that acquired OLX.

Mr Bundi was willing to trade in Mr Ngugi’s old vehicle and Mr Ngugi, impressed at the convenience of that possibility, began making arrangements for that to happen.

However, before the deal could be closed, Mr Bundi informed him that the trade-in option was no longer viable.

He was left with the sole option of selling his car to buy the one he wanted, a white Toyota Sienta, registration KCQ.

Mr Ngugi hunted for a buyer, sold it and reached out to Mr Bundi for the car he wanted. He was informed the car was still available at a showroom along Kiambu road at Sh600,000.

“The plan was that I pay a Sh500,000 deposit and remit the balance in instalments of Sh25,000,” recalled Ngugi.

Mr Kelvin Ngugi.

On February 19, when they were to close the deal, Mr Bundi advised Mr Ngugi to meet him at lawyer Wilberforce Mariaria Nyaboga’s office at Uniafric House, along Koinange Street, for the payment and signing of a sale agreement.

Mr Ngugi says he did as advised, returned with the money and gave it to the lawyer, who, alongside the seller, started counting it.

When they confirmed the amount, the seller offered to go get the car with Mr Ngugi’s father from a garage in Hurlingham.

Mr Bundi explained the car had been taken to Hurlingham to be fitted with an alarm system to ease its tracking in the event Mr Ngugi failed to remit the balance.

Unbeknown to Mr Ngugi, this was the seller’s trick to get away with his money.

The two stepped out to hop onto motorbike taxis to speed them to the garage, but Mr Bundi sped past Mr Ngugi’s father and disappeared.

“Later Dad called to inform me that they had lost him. We tried reaching Bundi on the phone in vain.  That is how I realised I had been conned,” he said.

Mr Ngugi says he recorded a statement with a Directorate of Criminal Investigations (DCI) officer at Central Police Station but that is yet to bear any fruit.

He says the police have been unable to track down both Mr Bundi and the lawyer, even on the occasions the latter is spotted at his office.
On Thursday, the lawyer denied knowing Ngugi and ever having drafted the agreement.
————

Another victim

After giving up hope of ever recovering the Sh900,000 she paid for a Toyota RAV4, Ms Florence Awour (36) decided to share her predicament on a Facebook’s parenting group to expose Mr Bundi, who had conned her too.

Ms Awuor had spotted the car at Jiji.ke and involved her brother in making the purchase. She paid Sh1.1 million through the lawyer’s Equity Bank account but never got the car.

Ms Florence Awour.

Nation Media Group

Her brother had been assured the car was at a yard along Kiambu road. Her brother and a mechanic had checked out and test-driven the car twice before she paid for it.

She conducted a search on the car’s registration and realised her brother had also been given a fake logbook.

“I alerted the car’s owner, who in turn filed a report with a DCI officer at Central Police Station under OB number 67/26/02/2020.”

After publicising her tribulations, she said the lawyer refunded Sh200,000 and alleged the balance had been wired to the seller.

Yesterday, the lawyer acknowledged he refunded the money but after realising that the deal had gone sour. He admitted to having recorded a statement at Central police station where the matter has been pending under investigation for months.

“I was acting on behalf of the two because they came to me asking for an agreement to seal their deal. I am therefore not to blame. I am also aware that the police have been hunting the seller who I only know as Robert, who is unknown to me,” he said.

The sale agreement however was with Alice Nancy Momanyi.
—-

Seller disappeared into thin air

Henry Munene Muchiri (35) also gave up after a long wait for justice. He said police were unable to help him recover Sh600,000 paid for a Toyota Sienta bought via OLX but was never delivered to him in 2018.

“After expressing my interest, I was taken to a yard on Ngong Road where I saw the vehicle, inspected it and agreed to make a purchase.”

A Toyota Sienta 2010 model.

File | Nation Media Group

But before the car was released, Mr Munene was asked to accompany the seller to his lawyer’s office in town to sign a sale agreement.

“At some point everything was fine, the car’s logbook and search hinted at no foul play until I was asked to make the payment. Apparently they did not have a bank account so I was requested to pay in cash and I brought the money to the lawyer’s office.”

At some point the seller said he needed to rush downstairs to pick up a laptop for use in the transaction but he never came back.

“The lawyer claimed he didn’t know the seller in person and I reported the matter at Central Police Station under OB number 146/10/7/18 but the investigating officer kept asking for a facilitation fee to speed up investigations. I later gave up and returned to Kirinyaga,” he said.

Efforts to contact Mr Bundi were futile. His contacts as received from the victims were out of service and others were not being picked.

Cash withdrawn immediately

However, an attempt to send Sh5 to one of Mr Bundi’s contact to get his Mpesa-registered name was successful. The amount was, however, withdrawn from his end as soon as it was received. A text message the Nation sent to this number thereafter requesting his response to the claims by the victims wasn’t responded to.

After placing a call and sending a text message to the lawyer on Tuesday, October 20, requesting his response to the claims by the victims, he called back but declined an interview on phone.

Mr Mariaria told this writer to meet him on Wednesday, October 21, in his office. The meeting was then pushed to Thursday when the lawyer denied claims of acting in collusion with Mr Bundi.

He explained that although he had drafted two agreements in the past for transactions in which the buyers never got the vehicles, he has never been involved in any deal with Mr Bundi.

Mr Mariaria added he could not recall parties to the transactions because he offers legal services to many people.

“People come to me after agreeing to sell and buy cars from each other and all I do is sign the agreement and witness the transaction,” added the lawyer.

Denies culpability

Asked whether he was concerned about his office being used to swindle Kenyans money, he responded he cannot stop people from flocking to his office in search of legal services.

“The only mistake I committed was receiving Florence’s money in my account. Otherwise, there are too many criminals in town and cars are being sold every day. The only thing I can do is to be careful next time,” the lawyer said.

Jiji, a subsidiary of Digital Spring Ventures, acquired OLX from five countries in its efforts to become the leading classified marketplace in the world by traffic.

The transactions made through the platform are virtual, which exposes it to abuse but to cushion its clients from theft, the website advises buyers to only make payments for items bought after successful delivery.

“Avoid anything that appears too good to be true, such as unrealistically low prices and promises of quick money,” further reads the disclaimer.

by nation.co.ke

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Why we built and turned our house into a resort

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When architect Dorothy Abonyo’s husband, architect Erastus Abonyo, received a call that the beach plot they had been looking for had been found in Sakwa, Siaya, they were elated.

The land had been standing idle for many years and snubbed by potential buyers because of the many bushes around it, but they saw the potential in it. “When my husband asked us (his family) what we thought about the piece of land, and suggested how we could use it, we were sold out. We loved the scenery and the fact that it was on the shores of Lake Victoria,” narrates Dorothy.

With the go ahead from his family, the land was bought in 2016 and they began clearing the bushes and fixing the road to the land. In 2017, the family comprising of four, all architects, began the process of designing and building their dream house on the land.

“I am an architect with my own practice, Tekto consult, my husband and our first- born child are architects. Our second born is studying interior design and architecture abroad. The house was designed by our first born, Teddy Abonyo, who was then a final year student,” says Dorothy, who has been practicing architecture for about 30 years.

READ ALSO:   'Each new day takes me closer to you,' Bob Collymore's widow Wambui pens

Shared responsibility

To them, building the house was a small project that they felt their son could handle. Dorothy came in to strengthen the design and add a few details and her husband did a lot of work in the initial stages, such as fencing and setting up structures where people could sleep in. Dorothy, who became the senior architect to the project, opted to stay and oversee the process of building the home.

“It was frustrating supervising the project while living in Nairobi where I work. Every time I came to check on the progress of the project, I would find workers have messed things up, which meant we had to start all over again. So I decided to stay and oversee the project by myself and when I took a break, I would close the entire site until I came back,” she narrates.

Low business as a result of the 201 7 elections that year also allowed Dorothy extra time to focus on the project. And in 2018, the three-bedroom house was completed. It was constructed with as much natural materials as they could find in the area.

For instance, the pebbles they used on the exteriors of the house were mostly picked from their land while the rest were harvested from their neighbour’s land. Nyanza being a relatively hot place, the house was designed with thick walls that shield the interior from heat penetration. “When you have thin walls, heat goes in easily. We used cladding, which is attaching a layer of stones outside of a house to safeguard it from the weather effects. With the two thick walls, it will take a long time for the heat to penetrate,” Dorothy explains.

READ ALSO:   Safaricom staff charged with attempting to defraud firm of Sh300m

The house was meant to be their retirement home, but they changed their mind after realising that the beauty and the set up spoke more and decided to share it with the public.

“We gave it a second thought and opted not to just have this place to ourselves as our boys were now old. Our second born is out of the country, he may or may not come back and is too old to even want to live with us. The last born too is on his way out meaning that it’s just me and my husband, so we decided to make it a holiday home,” she shares.

Getting into hospitality

That’s how their retirement home became a beautiful resort. Having come from the construction industry, the family knew nothing in hospitality except what they had experienced during their travels. “We have also travelled a bit and in particular, my trip in two cruises one at west Mediterranean cruise with the royal Caribbean for seven days in water really made me learn a bit on hospitality. Though we were over 5,000 guests, the staff took care of us as if we were five guests and there was no one time that we went to the restaurant and missed food. Their service, unlike other hotels I had been to, was superb,” she recalls.

READ ALSO:   Safaricom logo changes to grey shade in light of Bob Collymore’s death

Having unanimously decided that their home would be turned into a resort, the family came together to name it. Dorothy’s choice, Pi Kidi, won. Pi means water in the Luo, while Kidi meant the stones. The area too was green and lush, so it also functions as a garden resort.

“Not many people were comfortable with the fact that you can share your home with strangers, but it’s a new trend, they have eventually gotten used to it. The boys then came up with the idea of putting up tents saying that their age mates would fancy that. So we set up a campsite that’s pretty formal, but we are also thinking of opening up the bush for people who are more adventurous and just want to camp by the water or in the bush,” Dorothy adds.

By PD.co.ke

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