PETER WAHINYA: AIRTEL FREEZES ACCOUNTS OVER EQUITY BANK LOST FUNDS

The Airtel notice.

Airtel has been running a public notice featuring a Peter Wahinya in the Daily Nation for the last two months, cautioning the public not to deal with him on any Airtel issues.

It is enough to raise anyone's curiosity: what would impel Airtel to spend millions to put a guy's face in the papers?

Indeed, as they are asking at Wazua, how much money did Wahinya take from the company?

THE LOWDOWN

It can be confirmed that indeed, it is a case of money lost from the company.

It turns out, according to sources, that Wahinya, is accused of stealing millions from the company through its Equity Bank account by first transferring the funds from the account into other unsuspecting people's accounts before the money was routed to Wahinya's account.

Some conservative estimates place the money so embezzled at Sh26million.

It so happened that a customer, having notice the coming in and going out of unusually large amounts of funds in his account, raised the alarm.

He demanded to know where that money comes from before it goes out of his account as he did not recognize the transactions.

It is then that the trail was followed and the pictured gentleman's gig was up.

FROZEN ASSETS

As of now, as Wahinya tussles with his former employer, reportedly most of his assets have been frozen. His bank accounts have been frozen.

He is said to have grown a fleet of trucks that plied the Mombasa route -those have also been frozen.

He was also said to have built a few flats - those have also been seized.

It is not clear how the fellow, said to be in his late 20s, managed to pull of such a heist but from all appearances, it must have been done in complicity with a bank employee.

AIRTEL

As for Airtel, there is little incentive to warn the public of Wahinya's existence but according to sources, top brass at the mobile operator have decided to shame him relentlessly by booking the ads basically murder his character beyond salvation.

Meanwhile, expect the battle to take several fronts to court -- from Law Courts in the CBD for criminal related issues, to Milimani where, the Commercial Division of the High Court of Kenya, sits.

NOKIA DUPLICATE IMEIs COMPLICATE SAFARICOM (680K USERS), AIRTEL (130K) PHONE SWITCH OFFS

Safaricom, Airtel, Orange and yuMobile will starting Sunday 30, 2012 will begin exchanging blacklists of bogus handsets to be switched off in batches of 20,000.

Safaricom is targeting 680,000 users initially while Airtel has earmarked 130,000 at the outset. Figures for the other two are yet unavailable.

The figures are supposed to be much higher. Airtel for example is reckoned to have about 800,000 counterfeit phone users while Safaricom could go as high as 2million plus.

The game according to Safaricom insiders, has been complicated however, by handset-maker and vendor Nokia, still the dominant handheld device in Kenya.

Safaricom sources say Nokia a couple of years back made a mistake by releasing huge batches of handsets with idential IMEI (International Mobile Equipment Identity) numbers.

As such, many users on the operators network share IMEI numbers.

Airtel boss Shivan Bhargave is said to have protested to the Communications Commission of Kenya (CCK) who allowed operators to hold off on switching off such phones.

However, those handsets showing a bunch of zeros (0000000) will be cut off without further debate.

To check your IMEI number dial *#06#. You can then send the IMEI number to 115, the common mobile operators database.

The process of switching off is expected to be rolling for about 10-15 hours with 20,000 users being switched off at a time.

It is not clear how the issue of the duplicate IMEIs will be handled.

"It is only Nokia with that problem," Safaricom sources said.

Coca-Cola to launch Coke Zero in Kenya next week

So Coca-Cola, after taking what it deemed a misinformed beating in the press about certain ingredients in its soft-drinks, convened bloggers in Nairobi to hammer in a few home truths.

Bloggers, a yet-untamed quantity capable of terrorizing a brand online, heard terms like caramelization, enzymatic browning, emulsification, food-grade carbohydrates, subject-matter experts and a bunch of other terms that brand managers use.

The whole session boiled down to this:

1. Coke is healthy.

2. Coke will launch a brand this week that carries absolutely no calories so if you are settling down to a long session with Bacardi Black or Myers, this would be the best choice for your Rum and Coke, thus spake Peter Njonjo, the GM Coca-Cola EA.

Peter Njonjo (middle)

The Beef

In July, a consumer body in the US released a report claiming that Coke sold in places like Kenya contained much higher levels of a cancer-causing substance called 4-MethylImidazole (4MI).

Whereas in California, only 4micrograms of the 4MI are allowed in a normal 12-ounce drink, and to carry a cancer warning for any drink containing above that level, in places like Brazil, Coke was found to have 267mcgs.

Here's how different countries stack up:

The Riposte

Njonjo of Coke reckons that when we talk about additives, preservatives and so on, it will be important to understand the role of each.

For instance, while emulsifiers and stabilizers help the manufacturing process of soda, other additives are simply colours - imagine for example, drinking a clear beverage that has the taste of Fanta Orange. The colour is part of branding.

The much publicised 4MI, is but an every day by-product of heating food-grade carbohydrates much in the same way sugar heated in a pan turns brown.

This process is called caramelization and produces dark yellowish-brown colours.

"As we continue heating, there is a possibility that we get a different product like 4-MI," Philip Ndemwa, a researcher at Kemri told the bloggers.

According to Ndemwa, 4-MI is always produced in processes like cooking meat (that is why it turns brown), making Tusker Lager batches achieve an even colour and so on.

Looking Ahead

So going forward, Coca Cola will launch Coke Zero in the market next week.

It will carry out an education campaign to sensitize people on healthy living and disabuse them of the notion that Coke has too much sugar.

It is all a matter of Energy Balance, Peter Njonjo says. The number of calories that a Coke product contains will be highlighted and will possibly be accompanied by healthy tips on a number of calories burning activities.

Further stakeholder engagement with media, academia and so on will continue.

It's bottling companies have now adopted state of the art bottling processes that put bottles through two Elecronic Bottle Inspections in the filling cycle to determine if any impurity might have gotten into the product.

DStv TO RENUMBER CHANNELS, ADD BOX OFFICE

In Accra and in Nairobi tonight, DStv is set to unveil a new numbering of channels with related content being on adjacent channels - e.g. FTA channels like Citizen, NTV, KTN, K24 ideally following each other, while movies, Africa Magic and so on will all be regrouped to make it easier for viewers to navigate.

During the unveiling, Multichoice will also announce new High-Definition channels that have been added to its bouquets including Box Office which will be available for premium subscribers and where latest release movies will be shown before gradually being moved to the other bouquets.

A table laid out at the Golden Tulip Hotel in Ghana DStv event

The use of HD channels is meant to create more room for more content.

This will also allow for content of the same genre say romantic movies to be grouped together and so on.

Multichoice is moving aggressively to protect its turf as new challengers enter its African markets.

Tonight's launch is also expected to directly address issues of content including program repeats and dated movies that were sparked of by this Blog Post.

WHERE ARE GTV & SMART TV? DSTV COMPLAINTS NOT JUSTIFIED

While unconfirmed reports have it that the posters of letter in  Ghafla Kenya A Hilarious open letter to DsTv and Multichoice later went to Multichoice demanding that the company advertises with them, it is interesting that a rival platform was very keen to jump on the tweetfeed and FB comments generated to market itself and call for people to migrate to them, never mind a month or two ago they were under similar siege.

I've read the post and while some of the issues raised may be genuine, I think Kenyans also want too much for too little. That or rivals are now using trolls to malign other brands online.

Bottom line is, for those who remember embracing GTV and Smart TV, you do have to run a sustainable business model to survive and secondly, it is important to benchmark a brand against best practices elsewhere.

For starters, when it comes to international channels such as Discovery, E! Entertainment, Nat Geo and so on, these are pass through channels that re-transmit content as it comes without repackaging.

So the Discovery World and Nat Geo as you see them here is how they are seen on other continents.

Indeed, when the same issue was raised by DStv subscribers about repeat of marathons in South Africa, the matter was referred to Discovery Channel folks who responded as follows:

"There are usually marathons at the weekend on Discovery World which tend to work quite well.

We would like to give all viewers a chance to see the whole series if they miss the first or second episode hence the repeat of Biblical Mysteries series last Sunday.

The omnibus was repeated twice since different viewers tune in at 6am and at midday. It might happen that some heavy viewers will see the same episode more than once especially with mini-series marathons.

We appreciate the feedback and will take it into consideration when planning marathons on Discovery World in the future."

According to Multichoice, when it comes to acquiring these channels:

"Essentially, MultiChoice does not create the channels it broadcasts. This also means that we do not have direct editorial control over the channel schedules and content."

Secondly, on complaints about the content on channels like Africa Magic and Africa Swahili Magic: We are not producing enough local content that can be aired n these shows. There is no point in complaining about the repeat of TZ movies on Swahili Magic or Naija and SA movies and shows yet we are not producing our own content to compete.

Multichoice has in fact been pushing for people with local content to come forward it is willing to support it. 

Multichoice has two content producers: (Electronic Media Network) MNET and Supersport.

On each at least it has tried to assist in content development on the continent. MNEt has Africa Magic channels while Supersport now shows local football league matches.

Recently, the Multichoice Nairobi office was upgraded to a regional hub overseeing 10 countries as the company scales up the push for local content.

And as much as competition is good in the market place resulting in better products and pricing, at least Multichoice has been consistent.

Gushing over new entrants has seen GTV and Smart TV converts burn in the end only to leave DStv in the market.

So as far as reliability, the company still has reputational currency and will probably be trusted more than a newer flashy rival.

How the market plays out we are yet to see but wholesale criticism of brands without taking time to understand the business models behind them (GTV and Smart clearly showed the wrong market and pricing strategy will burn you) is disingenuous.

Kiptiness vs Wangusi for CCK's top job

The highly political and precarious position of the Director-General of the Communications Commission of Kenya is set to be filled after acting DG Francis Wangusi, CCK legal head John Omo and former CCK and Telkom Kenya lawyer Stephen Kiptiness were all short-listed for the job.

The previous CCK boss Charles Njoroge left in acrimonious circumstances after falling out with the board. It is suspected that powerful interests both in the telecommunications industry and in the Media conspired to see his removal for threatening their interests.

The post will be filled at a time when serious issues have to be addressed:

One, digital migration is about to take place and the billions at stake have seen the war over customers rise to a whole new level - expected to even go higher as Multichoice and Startimes Digital rush to roll out services across the country.

Simple mathematics - we have about 4million TV sets in this country. Each of those, theoretically, should have Digital set top box.

Set top boxes go for anywhere from Sh3000 - 7000. Working with the lower figure, 3000 by 4million sets....You get the picture.

Related, is the issue of frequencies - Njoroge fought with broadcasters because he sought to repossess frequencies that were issued under dubious circumstances in the first place and that media owners wanted to retain control of upon digital migration.

You see, one frequency yields 18 digital channels. The likes of Royal Media, Radio Africa and Nation Media Group want to retain control of these channels when they migrate but authorities have insisted that everyone will be allocated channels according to the content they can produce. A battle royale awaits the potential DG here.

Elections are also coming up and certain regulations, including those covering hate speech, the internet and social media are likely to be pushed so again the DG has his work cut out for him.

Not to mention, the issue of switching off bogus handsets and blocking unregistered SIM cards is also underway and again powerful interests will seek to sway the process.

Then the mother of them all, the issue of Mobile Termination Rates (MTRs). The last time CCK brought them down, Airtel unleashed a price war on the market that turned the market upside down and forced all other operators to bring their prices down too.

CCK has been seeking to bring these MTRs down further but telcos notably Safaricom and Orange have been against the idea.

That being said, who stands the best chance to be DG?

Francis Wangusi

Francis Wangusi (pictured right) has the inside lane - He has already been acting, and has, at least till now, not ruffled any feathers.

He is likely to be seen as safe and most likely lobbyists will push Information minister Samuel Poghisio, to appoint him.

John Omo who last time lost out to Charles Njoroge is on the short list but one would think he would have been chosen to act in Njoroge's absence but he was not. That is telling.

Stephen Kiptiness, is as sharp as they come, and is a look-you-in-the-eye straight forward kind of guy. He knows his stuff but the fact that he has been away from CCK for some time might work against him.

He was the Legal Head at Telkom Kenya and would probably make the best DG from the country's perspective.

As an outsider some things Kiptiness could probably be relied on to do is to come up with a proper spectrum allocation policy, at TKL he always railed against CCK for dragging its feet on this.

He could possibly come down hard on Safaricom being one of the TKL brass who believed that Safaricom rode on TKL's infrastructure to become what it became. But on the other hand, TKL and Safaricom had come to agree on some things, like the need to halt the reduction in MTRs.

All said, it is most likely Wangusi will take the job. Kiptiness could well be a future DG.

BARCLAYS PUSHES ATM, MOBILE BANKING

We speakin' billions!

Adan Mohammed wants you to use ATM's and do mobile banking to save on costs associated with visiting the branch to do transactions. That was the message the suave CEO gave at the investor briefing held at the Intercontinental Hotel to report the bank's half-year earnings for the period ended 30th June 2012.

The numbers were good. On the back of high interest rates, BBK raked in Sh6.3billion in profits before taxes for the six months to end of June. Compared to a similar period last year when it reported Sh5.3billion,  growth in this regard was 18 per cent.

It did this by holding costs down. BBK did not accept expensive deposits and therefore it did not have fork out large interest payments on deposits.

In the year, Adan informed investors, BBK did Sh40billion of new lending. Their loan book now stands at Sh101billion. Most of this is strictly prudential lending with the bank emphasizing risk management.

Indeed, room for growth is ample - the bank is capitalized to the tune of Sh27billion meaning theoretically it can lend up to 10 times that (Sh270billion) yet it has only put out Sh101bn.

BBK is now ranked third in profitability at the half-year mark after KCB (Sh8.5billion) and Equity Bank (Sh7.6billion). The bank lost its position as the most profitable in the country last year as aggressive expansion and customer recruitment at the two local banks yielded fruit.

To keep costs down, BBK is emphasizing ATM and mobile banking. One of the ways they have done this is by eliminating ATM transaction fees. 

They have also launched Hallo mobile banking allowing you to transact via mobile and this is a service you can register to from the screen of your phone without having to go to the bank.

Going forward, Adan said the continued imbalance between what Kenyans are importing and what they export is likely to put pressure on the shilling so in other words, the shilling could weaken in the coming months.