Tuesday, April 7, 2009
BONDING WITH KENGEN...and buying kenyan:-)
I had an interesting morning today, I hate going for press events unprepared, but when I was told of a possibility of a one on one interview with Eddy Njoroge of Kengen about their forth coming bond issue, I jumped at the chance.
An infrastructure bond in these economic times is a hot topic, it's endless possibilities and questions of viability of raising funds in the local market especially one whose corporates have in the past relied on foreign capital.
Where there is power, there is money.
Our GDP growth may be much lower than projected, and maybe even lower this year, but we continue to grow and the demand for power continues to expand, an issue that places Africa in a challenged state. So, expansion is the next best option.
The 15 billion shilling infrastructure bond is in it's final stage and awaiting CMA approval.
But this blog is not about the Infrastructure bond.
I want to talk about what the ongoings in the securities market mean for me as a Kenyan interested in our economy.
We're experiencing a paradigm shift in hte way we look at financing options.
After the over subscription of what the government called an *"Infrastructure bond" (rather a government bond paraded as an infrastructure bond) last month, we have seen the potential that lies in raising money locally.
The sovereign bond had to be shelved until the markets out there stabilize, and Jah knows how long that might take.That was the only option.
While that sinks in we're cultivating an economy that believes in itself, and is ready to put it's money where it's mouth is.
That's perharps the first step this country needs to stand on it's own.
I feel that the business community is beginning to realise that you cannot ignore the local wealth anymore. We have learned that we can find Home grown solutions, and this I hope can be spread out across all sectors, including retail.
My take is that even the littlest kenyan can be part of this paradigm shift.Lets begin small, for instance When buying Coffee, Tea, food stuff, Buy Kenyan, Build Kenya.
I have made my commitment to that, and I hope you will join me. ( Sorry Nescafe!)