20 STAR Monday, July 13, 2009

Up to date, accurate business information STAR BIZ NEWS YOU CAN USE, EVERY DAY. Can YOU outsmart the expert? NAKUMATT SEEKS CASH

ALY KHAN’S FROM NEW US PARTNER BY PETER KIRAGU

NAKUMATT Supermarket STAR is seeking close to Sh2 billion from an equity strategic part- PORTFOLIO ner from the United States for its regional expansion. High level discussions are WHY ICC’S STEP MAY ongoing between the compa- ny and two investment funds BE A GAME CHANGER from the US for the money, which will be used to expand WHEN I was Sumitomo fi rst hand experience of the the supermarket chain in the Bank managing director impact of political risk on the East African region where between 1995-1998, I economy. There we were 15 more branches will be set traded Italian interest rates. fl ying at 7.1 per cent and up. Those were the days before then we were at zero. That These include more Lothario Sylvio Berlusconi hero to zero move was all branches in and and when the Italian about political risk. Nothing and a branch in Tanzania set to be opened government would fall every changed except the politics. early next year. few weeks. Now the question is, how Though Nakumatt’s man- In the 1990s, Italy does Ocampo play this? agement is still tight-lipped defi ned political risk. Before By all accounts, he has a on the names of the inves- EXPANDING: The supermarket wants to build more branches in the East African region. Sumitomo, I had been deadline and invitation to tors, the discussions, which at Credit Suisse and CS act now. The lawyers got a started in 2007, are almost Nakumatt was under pres- He said Nakumatt was creditors. had designed AutoStrade 12 month extension but in complete. sure from its lending banks seeking more cash from “Yes we are going through Bonds, which were bonds return, they gave the ICC a The two investors, from among them Barclays to commercial banks to fund some cash  ow problems at securitised by Highway Toll sovereign invitation to come. whom one will be picked, bring on board a strategic its expansion neither will it the moment but the problem receipts because no one That was actually what were in the country last investor. raise the needed money from is not unique to us only,” he was prepared to lend to Ocampo needed that he has Wednesday. However, sources familiar listing its shares on the Nai- said. “All businesses are suf- Italy at a square price. I have not got from Sudan. It is the “We are looking at be- with the developments say robi Stock Exchange as earli- fering.” been urging our people to key and he has it now. tween 20 and 25 million US the banks have threatened to er planned because of slowed He denied speculation do the same but I digress. Therefore, how does dollars (Sh1.54-1.91bn) de- stop dealing with the super- activity at the bourse. that Nakumatt’s operations Kofi Annan fi nally this play out? Those folks pending on the value of the market until a clear corpo- The IPO has been pushed director Thiagarajan Rama- delivered the envelope in the envelope and the business,” said Nakumatt’s rate governance structure is up to the next three to ve murthy, credited for the su- managing director established. years. permarket’s growth, is leav- to the International assumption is that they in an interview with the Star. “It has got nothing to do “We can only get the mon- ing to pave way for a new Criminal Court and its are the ones, who by dint One of the funds has al- with banks and we are still ey from an equity partner,” boss. sharp shooting sheriff of having a case to answer ready shown commitment, dealing with them (Bar- he said. But new managers will be Luis Moreno-Ocampo. were the very ones who he said. clays),” said Shah. Shah admitted that cur- brought on board to help the The troika of lawyers that supersized the political Nakumatt is valued at “We are looking for rently Nakumatt is experi- current ones. “TRM is still went to Geneva apparently risk, are set to be removed between Sh6.6 billion and growth and if we don’t get encing “some liquidity chal- part of the company unless seriously tweaked Annan from the political game. Sh7.8 billion. the money, we shall just stop lenges” leading to delays he chooses to leave,” said (arrogant and very bad call They can huff and puff Shah denied reports that the growth plans.” in settling its obligations to Shah. — I would really have some but it is the quality of their questions about my legal legal brief, which is surely team) and before you could of overarching importance say ICC, he had passed now. Coops now control ‘40% of economy’ the buck and washed his And I know three lawyers hands. In the background, whom I would be very BY KNA holdings, a factor that of dairy and grain farmers President Obama, now the nervous about having further strengthens its posi- from Eldoret East district. biggest political actor on represent me. I think we just OVER 40 per cent of tion at the nerve centre of Nyagah said the coopera- our continent, was making quarantined a great deal of the Kenyan economy is national nance. tive societies had moved controlled by the coopera- Speaking in Eldoret, out of the dormancy state remarks about us that political risk: That the last tive movement, Coopera- Nyagah reiterated the of the 1990s that was you had to be stone cold week’s developments are tive Development minister government’s commitment caused by mismanagement deaf not to be hearing. a game changer; And that Joseph Nyagah has dis- to develop the cooperative and corruption. (Admittedly, the international political risk, which was closed. movement and make it the He urged members of reception was very poor or blinking red, is set to reduce Nyagah at the weekend strongest pillar for national cooperative societies not was that just my TV?). now and that’s a real bullish said the movement further economic stability. to sub-divide them into In , we have had medium-term development. controls at least 30 per He was presiding over smaller groups, whose cent of the total savings in the of cial launch of the returns would not make an Shares go up and down and readers are advised that this column represents Kenya through individual Chepkoilel Marketing Co- impact in terms of share Mr Satchu’s personal opinions. GROWING: Nyagah and group bank account operative Society, a group contributions.