World bank cut Kenya forecast from 5.3 to 4.7

Today world bank Kenya has announced that it was cutting the growth forecast for Kenya 2014. they blamed this situation on the following factors
1.insecurity
for the past one month Kenya as experience security lapses. which are blamed on the Somalia terrorism group alshabab and also the internal fighting between ethnic and clans who are fighting for resources.
many Western countries advised its citizen against traveling to kenya. this has caused the the number of tourist arriving in the country to decrease which is the leading earner in the country after agriculture.
2.increase in the electricity price
World Bank says that the increase in the electricity prices will lead to the increase in the prices of goods and services as they are dependent on the electricity. Kenya government is carrying out ambitious project of connecting each households into the electricity grid in the next five years. the bank says this is possibly since Kenya has natural resource such as geothermal,which is capable of producing to oversupply if its utilized and resources allocated into its production.
3. inflation pressure
Rising inflation rate in the country is expected to slow down the rate of the growth in the country. this inflation is blamed on..
- high cost of goods. prices of goods have really risen since government passed the VAT bill. in which they expected to increase the revenue they are collecting to finance its projects and rising wage bill.
- high cost of borrowing money from Kenya. since 2002 Kenya banks have been making big profits at the expense of its customers.

Mbuvi Ngunze the new Kenya Airways CEO

Kenya  airways has announced new Chief Executiveofficer to replace Dr. Titus Naikuni whose term ends in November 2014.Mr. Mbuvi Ngunze, who is the current Chief Operating Officer in KQhas been appointed to the role of Group Managing Director and CEO of Kenya Airways Limited with effect from December 1, 2014.The Group Managing Director/Chief Executive Officer, Dr. Titus Naikuni, will be retiring at the end of November 2014, after 11 illustrious years at the helm of the national carrier, Kenya Airways Ltd -'The Pride of Africa'.“In January this year, the Board of Directors engaged the services of aninternational Executive Search firm, Spencer Stuart Ltd., to assist the Board in identifying a successor to Dr. Naikuni as Group Managing Director and CEO," said Evanson Mwaniki, Chairman."I am pleased to announce that the Board has finally reached a unanimous decision on this matter. As such, I am pleased to announce the appointment of Mr. Mbuvi Ngunze, who is the current Chief Operating Officer in KQ. to the role of Group Managing Director and CEO of Kenya Airways Ltd.,

the worrying ageing Africa farmers

the statistics released recently shows that farming in Africa is increasingly being left out to the old members of the continent. this as lead the decrease in food production in the continent that as resulted in famine affecting many countries in Africa.
The youth are not interested in farming. majority of them are flooding the cities in search of office jobs. for example in Kenya where agriculture is the main activity that drives economy after tourism. this has not even inspired many jobless youth into venturing into the farming.
the problem with the ageing farmers they practice agriculture instead of agri business. by practising agriculture they farm using outdated farming techniques which results in less produce in the farms. while the youth who understand the current best practice of farming do not want to engage in it.
so where is the problem
1.education system
when students are in school they are encouraged to study hard that they will become doctors, teachers, pilots, lawyers, engineers and FARMERS. so student's develop notion that farming is a job for the parents who at home or retired persons in the society.
2. government
many government in the continent does not encourage the young people to venture into the farming as a way of solving food shortage and reducing the rate of unemployment in the society. the role of government is to provide enabling environment where young persons will be attracted into farming and this is done through provisions of subsidies on farming materials. improving roads that is used by farmers.
if the youth will engage in agricultural activities the food shortage that is being witnessed each year in the continent will be the thing of the past. millions of jobs could be created.

About joshoua oigara

Joshua Oigara
Group CEO

He was appointed as the KCB Group CEO on January, 2013.
 He previously served as the Chief Financial Officer of the Bank prior to his appointment.
EDUCATION BACKGROUNG
He holds a Masters in Business Administration with a distinction in International Business Management from Edith Cowan University, Australia (2011), Bachelor of Commerce Degree, Accounting Option, from the University of Nairobi, Kenya (1997), Advanced Management Program Graduate from INSEAD, Fontainebleau, France (2010). He is also a graduate of the Program for Management Development (JuMP), Fuqua School of Business, Duke University, North Carolina, USA (2006) as well as a Certified Public Accountant of Kenya, CPA (K), School of Accountancy, Strathmore University, Kenya (1997).
 He is a Board member in KCB Bank Tanzania Board and sits in the Risk, Credit, Human Resources, Procurement, Transformation, Strategy and Information Technology committees.

kenya banks making super normal profit expense of its customers

Kenya banks have emerged as the country most profitable sector. of all the 43 banks in the country they made profits except for the four banks which reported loses. Banks are making this super normal profit after charging high interest rates that they offer its customers. it is considered that Kenya is among the African continent that loans are the most expensive. The relationship between the interest rate and prices of goods and services is clearly related. when the interest rate are high this lead to the sharp increase in prices of goods as limit the circulation of money in the country. This month the KBA Kenya bankers association and treasury announced that commercial banks have began the pilot implementation of the annual percentage rate APR. this is a pricing mechanism which will enable consumer to compare different bank loans cost based on standardized parameters and a common computation model. APR takes into account the following factors 1.interest rate components: 2. bank chargers and fees 3. third party cost,legal fees, insurance costs, valuations fees and government levies.

Kenya and terrorism

For the past one month Kenya as suffered attacks from members of extreme Islamist Alshabab from the neighboring country Somalia. the question on the minds of Kenya's is why I we been attacked. this as lead to emerging of countless theories concerning the course of attacks. we have sampled this theories.; 1. Because Kenya send it troops to Somalia. During the time of former Kenya president Mwai Kibaki Kenya accused the Islamist for kidnapping tourists in the coastal kenya. Kenya decided to send its troops to Somalia in pursued of them, they managed to captured the port of Kismayu that alshabab had controlled for years. following this alshabab changed it tactics from piracy's on Indian ocean and started to recruit Young boys Into it's organization to use them to fight for them inside Kenya in what they called revenge for the death of their brothers in the Somalia. 2. Corruption inside the Kenya government corruption in government of Kenya is ranked high regardless of which regime are in power both government and opposition have no solutions to this "diseases". its believed that immigration officer's are the one letting terrorist to enter the country just by paying them few shillings the police manning the roads have not been left behind. contracts that are tendered are surrounded by secrecy which fuel corruption to prosper. 3. Ethnicity The biggest deceased that Kenyans suffered from is ethnicity power is viewed as a way to reward your "people" even department like security are not spared on this. Ethnicity is even being used to fight the terrorism in Kenya people are being profiled according to their ethnicity. Somalis of Kenya origin are the one felling the consequences of the police because of the sin committed by "their brothers" in Somalia. 4. Economic sabotage This theory is passed by majority of the current administration who. accuses the western government for the sabotage. this is after USA UK issued travel advisory for its citizen. During election period western powers had warned Kenyans on electing Uhuru and Ruto whom they we're facing criminal charges at ICC. that their will be consequences. many Kenyans now believed that this is what they meant. 5. Politics Kenya is country were you will not deferenciate between campaign time or not. government practice politics you may though they are the opposition while the opposition love to criticise government regardless of good or bad action by the ruling party. The terrorist takes advantage of disunity coursed by Kenyan politicians.

U.S. banks reported lower exposure to Russia in the first quarter,

- Big U.S. banks reported lower exposure to Russia in the first quarter, as Western nations imposed sanctions on some of the country's citizens and businesses in response to its seizure of Ukraine's Crimean peninsula. During the first quarter, Bank of America Corp cut its net exposure to Russia by 22 percent to $5.2 billion, most of which was in the form of loans to Russian energy companies and banks, the company said in a Thursday filing with the U.S. Securities and Exchange Commission. "The situation remains fluid with potential for further escalation of geopolitical tensions, increased severity of sanctions against Russian interests, and possible Russian counter-sanctions," the second largest U.S. bank said in its filing. JPMorgan Chase & Co's exposure to Russia declined by 13 percent to $4.7 billion, placing it outside the company's list of its top 20 country exposures, the bank said on Friday in a quarterly filing with the SEC. Citigroup Inc's exposure to Russia declined by 8.7 percent to $9.4 billion during the three months through the end of March, according to a Friday quarterly filing with the SEC. In the same period, the Russian ruble depreciated 8.3 percent against the U.S. dollar and an index of Russian stocks fell 9 percent, Citigroup said. The International Monetary Fund on Wednesday slashed its forecast for Russia's 2014 GDP growth from 1.3 percent to 0.2 percent, citing Ukraine-related sanctions as a risk factor. JPMorgan said it was closely monitoring the impact of any current and future sanctions as well as possible contagion effects or potential credit downgrades that could influence other parts of the bank's business. U.S. President Barack Obama and German Chancellor Angela Merkel warned on Friday of additional sanctions against Russia if it interferes with Ukraine's planned May 25 elections. (Reporting by Peter Rudegeair and David Henry in New York; Editing by David Gregorio)

list of hotels and lodges in kenya

HOTEL INTER-CONTINENTAL NAIROBI
Hotel Inter-Continental Nairobi is located two minutes walk from the city centreand adjacent to Uhuru Park and Parliament gardens and the Kenyatta International Conference Centre. This 440 room hotel is extremely popular with business traveller and was recently renovated. Secure multi-storey car park and casino available.
Contact:
Hotel Inter-Continental
City Hall Way
P.O. Box 30353
Nairobi.
Telephone 335550
Fax 337854 / 214617 / 210675

SAFARI PARK HOTEL & CASINO
Set on a sprawing 64 acres of beautifully landscaped gardens, the Safari Park Hotel and Casino, Nairobi Kenya is a luxurious business and Pleasure resortwith 204 rooms of spacious, elegant. 5 star accommodation. Seven executive restaurants offer a large variety of internationalcuisine from African, Japanese nd Indian to French, Chinese and ltialian.
The Hotel's vast entertainment and leisure options include the Club Sting Piano Bar and a discotheque, the nightly abaret show by Safari dancers, a plush fitness club, three outdoor tennis courts. two squash courts, a world class casino and the largest swimming pool in Africa.
Contact:
Safari Park Hotel & Casino
Kasarani off Thika Road.
P.O. Box 45038
Nairobi, Kenya
Telephone 802493. 222846.
Town Office Kimathi House.
Telephone; 21 6070
Fax 802477

GRAND REGENCY HOTEL
The Grand Regency Hotel isan elegant ultra modern luxury atrium Hotel oil a prime site overlooking Central Park and only 20 minutes from the airport.
The hotel has:
*. 300 air-conditioned rooms and suites
*. Multi-channel satellite TV 124-hr room service
*. In-house laundry, dry cleaning and valet service
*. smoke-detectors and water sprinklers
*. Shopping Arcade
*. Reuters
*. Serviced business centre 'Parking for 200 vehicles
*. Several restaurants, terraces and cocktail lounges
*. Fully equipped fitness centre
*. Heated covered all-weather swimming pool
*. Cabaret
*. A large conference/Ballroom, pairsseveral meeting and pre-function rooms.
Contact:
Grand Regency Hotel
P.O. Box 57549
Nairobi.
Telephone 21 1 199
Fax 217120

FIG TREE HOTEL LIMITED
Quiet Hotel, 1 kilometre from the city centre - along Ngara/Muranga Roads. The Hotel has 45 self contained rooms with shower and telephone. The Hotel has well stocked bar, restaurant with both Africans and continental dishes. It has also ample parking area.
Reservations:
Fig Tree Hotel Limited
P.O. Box 31938
Nairobi
Telephone 743677, 744207,742148
Fax: 254 - 2 - 751436

HOTEL GRETON
The Hotel Greton is a first-class hotel situated in the heart of the city. It. offers 52rooms with telephones shower with hot water and self control music. It is between casino and Odeon cinemas and it is also next toEmbassy cinema. Hotel Greton has reasonable rates and considers special discounts for children up to 2 years.
Contact:
P.O. Box 55909
Nairobi, Kenya
Telephone 336648, 331865

JACARANDA HOTEL
Peaceful garden hotel in thefashionable suburb, 12 minutes drive from the city centre. Large swimming pool, garden bar excellent food, and 130 furnished rooms with bath and phone.In our opinion Jacaranda offers excellent value and isan ideal combination with a Safari, Hertz and UTC Safari centre.
Contact:
Nairobi Jacaranda Hotel
Westland Road
Jacaranda Building
P.O. Box 47557
Nairobi
Tel 335807
Fax 543810
Telex 22146

HOTEL ESPERIA 
is quiet andcomfortable Hotel away from the noisy city centre and YET in the City - It has self contained rooms and YET very fair rates.
Contact:
P.O. Box 14642
Nairobi
Tel. 74281 8

MAYFAIR COURT HOTEL
Mayfair Court Hotel is only seven minutes drive from the city centre. It is at this site the original Mayfair Hotel which was opened in 1949. In the eighties the Hotel building was used by the US International University which was movedto another site in 1 990. Conservation corporation of East Africa has returned this magnificent Hotel to its former glory. The Hotel offering 4-star service and accommodation. The facilities include:- 2 swimming pools, a conference centre for up to 30 people, a special terrace bar called "Mischief", casino of high standard etc.
Reservations:
Mayfair Court Hotel
P.O. Box 74957
Nairobi, Kenya
Telephone 746707/8/9 748258 748278 740920
Fax 748823
Tlx 25182
WINDSO KE A4/A5

ADVANTAGES AND DISADVANTAGES OF INTERNAL CONTROL SYSTEM

ADVANTAGES AND DISADVANTAGES OF INTERNAL CONTROL SYSTEM

Advantages of ICS to the Auditor

a) ICS will reduce the amount of audit work to be done in so far as the auditor will be able to use systems based audits to apply tests which will facilitate his audit work.
b) A strong ICS will minimise chances of errors and frauds, and the introduction of inter-checking supervision and improved custody will in turn minimise liabilities to third parties, who would have depended on his opinion with greater surety and speed.
c) Will reduce the amount of audit evidence to be gathered, because it will facilitate reaching and using a greater variety of audit evidence available within the business. This will enable him to form an opinion with greater surety and speed.
d) The presence of an internal check system strengthens the credibility of audit evidence gathered.
e) ICS minimises the work load and the time need to take in order to produce his report.
f) The preparation of an ICS will identify those areas prone to errors and frauds, which will enable the auditor to plan his audit work so that he allocates more time and effort to those areas where for organisational reasons the internal check system is weakest.
g) ICS emphasises the use of control accounts thus assuring the auditor of up to date account reconciliation information which will facilitate his examinations.
h) ICS enables him reduce the sample size to be tested and thus facilitate his ability to carry out as many varied audit checks as possible.
i) ICS can only be strong normally with support of a strong internal audit function which in turn enables the auditor to use internal auditor’s work to facilitate his work.
j) A strong ICS boosts accountability which depends on clearly segregated and defined duties and responsibilities and this will enable the auditor to know who to contact in case of difficulties.
k) It also helps him to give quality advice to management; this in turn may minimise his work load in future audits.
l) ICS enables the auditor to have greater knowledge of his client’s business and facilitates the drawing up of a balanced audit opinion.

Disadvantages of ICS to the Auditor

1. The management may over rely on the strength of the ICS and therefore relax their supervision which may leave room for errors and frauds thus exposing the auditor to potential civil liabilities.
2. The presence of ICS may lead to the auditor reducing the volume of examination carried out which may lead to smaller samples of data thus leaving other areas to possibilities of errors and frauds which may expose him to civil liabilities.
3. It may be frustrated by management through collusion and manipulation which may mislead the auditor’s opinion leading to biased reports.
4. The presence of ICS is supposed to minimise the auditor’s volume of tests but not his liabilities which means that its strength may leave some errors and frauds undetected due to relaxed tests. This will increase his liabilities. ICS may be manipulated so that errors and frauds by the management cannot be easily detected and this may lead to a biased opinion.
5. ICS may reduce the auditor’s vigilance and observations with an unfavourable effect on the quality of the audit.
6. ICS may be abused by the internal auditors through collusion with the management and this may lead to the external auditor being mislead.

Advantages of ICS to the Client
a. Safeguarding client’s assets against:
a) Misuse
b) Misappropriation
c) Manipulations
d) Abuse of the Company’s assets (for reasons that will not benefit the Company)
e) Facilitates optimal use of the Company’s assets.

b. Reduces audit fees. This is because less audit work is needed and less audit staff.
Increased efficiency through management supervision and a defined organisation chart. Routine and automatic checks also increase efficiency.
c. Chances of errors and frauds are minimised.
d. This ensures minimum losses, facilitates audit work and hence early reports and attainment of budgeted performance.
e. Facilitates corrective measures in so far as the objectives of the business are better defined and therefore the facilities available can be suitably directed to their achievements.
f. Facilitates up to date records.
g. This is advantageous in that is prompts decisions through feed back to management which helps detect irregularities.
h. Leads to balanced opinion (unqualified report) improving public opinion of the business.
i. This helps in raising finances by selling shares through public sale and improving investment
implementation.
j. It boosts morale of staff through motivation of supervision. This may lead to high output and high profitability.
k. ICS helps in the redress of disastrous decisions especially in high risk situation. This is done through close application of management controls in development situations.
l. ICS assists in the co-ordination of operations. This is done through definition of duties and responsibilities of all employees and it boosts efficiency in the:
1. Carrying out of operations,
2. Efficiency in delegation,
3. Efficiency in execution.

Disadvantages of ICS to the Client

a. ICS is expensive to install and maintain. For example, the physical control security systems require qualified personnel to maintain them and constant servicing.
b. ICS could lead to a problem of over reliance on the ICS. This may lead to relaxation in supervision and allow manipulation of accounts and assets and can also bring about inefficiencies. Maintaining controls requires constancy and consistency.
c. If not well instituted it may encourage over staffing.
d. Rigid implementation may lead to a slowdown in the operation of the business.
e. The ICS requires continuos updating as the organisation changes, if not the ICS may become increasingly obsolete.
f. Use of wrong controls may expose the Company to more problems, e.g. errors and frauds. These are more easily perpetrated if the ICS used is inappropriate.
g. ICS may be frustrated if through changes in company organisation the checks become uncoordinated.