Finding a Secure Offshore Banking Account

While it can be difficult to search for an offshore financial institution, it is equally challenging to locate an offshore company that guarantees discretion and confidentiality. Ensuring that banking transactions are secure and confidential are the most important goals of an offshore banking company.

Favorable Territories

Some offshore companies within popular jurisdictions are subject to extreme laws that permit country officials to change government policies because of tax-related pressures. Countries such as Switzerland and Panama are two that often change their laws frequently because of such pressures. On the other hand, jurisdictions such as the Cayman Islands or the Channel Islands have more favorable tax laws that not only permit institutions to provide confidentiality as an offshore banking solution, but also provide more liberal tax incentives for offshore clients.

Asset Protection

Offshore companies gradually continue to offer more options to allow customers to perform traditional banking activities such as wire transfers and online banking regardless of modifications to banking privacy laws. Although such laws can change without notice or consideration to the offshore consumer, finding and choosing the best offshore banking company that prides itself on maintaining privacy for its clients will far outweigh the impact of countries that modify their laws frequently.

Trust Options

Another offshore banking solution for clients is the offshore trust company. This type of banking product fulfills additional demands of clients who want complete privacy as they perform daily banking and trust transactions. For example, offshore companies are able to accept client deposits without having to reveal individual identities to third parties.

Benefits

Opening an offshore account with the help of an offshore company will give you greater peace of mind and a refuge for your wealth in a private, secure place. Offshore companies offer a variety of short- and long-term options, depending upon the goals of their clients. Clients have the option of investing in tax-free stocks, commodities, and/or interest-bearing term deposits.

Offshore companies that offer asset management services and help to protect their clients’ wealth from litigation and questionable trust administrators provide the best incentives for future clients who want to see their assets grow without the heavy tax burden of some countries.

The most important thing to consider in searching and selecting the best offshore banking company is the policy against criminal actions and subsequent convictions. Most reputable offshore companies have a policy of non-tolerance for clients who are convicted of tax-related crimes within their home countries.

4 Major Challenges Kenya's MPESA Agents Go Through

M-PESA is the mobile money transfer platform introduced in Kenya by Safaricom - Kenya's arguably dominant mobile network operator. It is a fact that M-PESA has revolutionized lifestyles of Kenyans in the last eight years. To-date there are about 40,000 M-PESA agents in Kenya according to statistics from the telecommunication giant. It is this extensive network of M-PESA agents that Michael Joseph attributed to the phenomenal success of the M-PESA mobile money transfer system. Although the former CEO's assertion remains arguable, the significance of the agent outlets cannot be overemphasized in analyzing the mobile money transfer system's success.

Engaging a couple of M-PESA agents in some discourse, recently, in trying to understand their contribution to the platform's success, I caught a few concerns that would qualify to be the 'Tribulations of the M-PESA agent'. Here are some :-

1.Fradusters

M-PESA in Kenya is anchored on SMS texts exchanged between individuals, agents and suppliers as 'validation notes'. The validation notes  in form of SMSs are guaranteed by M-PESA agents' deposits with Safaricom (also known as float) through a trust deed. With the maturity of M-PESA money transfer service as part and parcel of our society, even the fraudsters have joined the bandwagon to make their contribution in the diverse society. Agents have repeatedly fallen prey to these 'intelligent' citizens who send fake system withdrawal messages at outlets. Unsuspecting attendants ignorant of the authenticity of these texts dish out money only to discover the trickery when the fraudsters has  vanished.

The tricks can be as simple as sending that fake sms, to what is believed to be an inside job, where an MPESA attendant is called by a person smart enough to use codes to by pass your security codes and transfer the funds to another number. In most cases they clesr your float, leaving you helpless. How they do this is a topic for another day. Of greater concern to the agent is the fact that their contract with Safaricom pushes liability for such losses to the hapless agent.

It might be easy to think that the amounts stolen by these fraudsters using this method is little and theoretically limited to Ksh.70,000 (Maximum transaction amount per transaction) for instance. However those who are privy to operational details of  small enterprises like M-PESA agency might know that once an outlet is hit with theft of such magnitude, it could take months, years or never to recover.

2. Service Outages

Safaricom, often put out advertisement in traditional press and social media notifying M-PESA users and agents of a scheduled downtime. The scheduled outages are due to a planned upgrades of the mobile money transfer platform. A service outage for a whole day means loss of a day's worth of revenue (commissions) by agents. I am curiously shocked to learn that Safaricom have a reason to bring down a service so critical to Kenya's economy for over 32 hours. For a moment I can't prevent thinking that service availability is not an important service quality metric to Safaricom. I defer my curiosity for now until they announce the new upgrade schedule.

Scheduled outages not withstanding, it is not rare for M-PESA agents to be found helpless by customers who cannot be served because 'the network is down'. The same is experienced by customers themselves from their phone when they occasionally try to transfer money to others only to get a message that their transfer was not successful (to try again after ten minutes). Worse cases of service reliability affect M-PESA agents when a customer deposits money and there is a delay in the receiving the deposit confirmation text (on the customer's phone). The  agent is left in a precarious position of mistrust with an impatient customer who might not believe that their confirmation message will eventually come (perhaps after 20 minutes or never).

It is these planned and unplanned system outages (or degraded performance) that occasionally make the M-PESA agent a helpless businessman. Their supplier is also so powerful that they have no chance of negotiating favorable service level agreements to protect their small businesses from effects of such diminished service quality. Safaricom deserve a little more credit though. From the planned upgrade, it appears they have realized a need to improve the quality of their service. Although the planned platform improvement might alleviate some of the recurrent outages, the little bargaining power of the agents will remain a matter of concern.

3. Employee theft

Dishonesty can be argued to be prevalent among employees in Kenya.  Arguably, the desired combination of reliability and honesty among our workforce remains quite elusive. M-PESA attendants are not aliens to the purported culture of dishonesty. It should be correct to say that mobile money transfer systems include elaborate mandatory record keeping – some of which are electronically hosted by the money transfer platform. However many people forget that for as long as attendants must handle real money at some point, a temptation to steal or divert money meant for their outlet's operations exists.

Dishonest employees combined with an inept law enforcement system means that the M-PESA agent has to pray every day for their attendants not to yield to stealing temptations. The current police and justice system is such that it may be obvious who stole but nothing beyond knowing the thief is doable. It is this ever present fear of losing an outlet's cash that can permanently keep the M-PESA agent crossing their fingers. Some insurance companies I am told offer insurance cover against such losses but with 20,000 shillings 'excess' fees for any theft instance claimed. The insurance cover then rarely to makes sense to M-PESA agents since typically lost amounts are about the same as the 'excess'.

4. Fake Currency

A couple of weeks back I was listening in to one of our morning radio shows. Then there was this exasperated caller who was narrating how someone had deposited fake 20,000 shillings notes at their M-PESA outlet. The outlet's attendant had discovered the fake notes and alerted the local police before the conman had left. The police arrived at the scene, confiscated the fake notes, and left with the conman in 'custody'. To the astonishment of the agent, the police did nothing to assist agent who had already 'received' the fake deposit - hence deducted from their float. According to the caller, the conman eventually went scot free. With the current arrangement, no form of assistance was to be expected from Safaricom for mitigating such risks since the 'nonnegotiable' liability remains the agent's.

Long Conclusion

There are many other experiences that add up to miseries for M-PESA agents ranging from general risks in the external environment to business risks directly related to the nature of outlets operations. It should not surprise many that the much touted 40,000+ M-PESA agents are really not having sustainable businesses. It might also be that the extensive network of agents is the single biggest success factor of Safaricom's M-PESA platform for money transfer. In that case, with the above sentiments of M-PESA agents, it is the same factor that Safaricom has not quite controlled to their favor. Some of the M-PESA agent's troubles appear to be way out of reach in Safaricom's external environment. It is however the same environment that an entity of their size and might could work with the government to influence – for their favor. Some of the mitigation measures are as basic as additional agent capacity building.

All that said, I shall suggest that “The most significant success factor for mobile money banking operators working in Kenya will be their value proposition to Kenyan stakeholders including their customers, agents, and shareholders”. In my opinion, patriotic sentiments and feel good aspects such as corporate social responsibility will take a back seat as value drivers determine future growth paths for the competing mobile network operators.

The Basics of Asset Allocation

Asset allocation is simply the building block of investment planning, it is about investing across various asset classes such as equity, debt, gold, property, etc.

Here, various categories of investments behave differently while benefiting investors. For this, it is important for an investor to look for investment options (right assets)as per one’s financial requirements. The idea is to put your money into different investment categories to take advantage of varying situations. 

How to assess your asset allocation needs? 

Every investor has unique financial requirement, which usually defines her or her investing ideas. Thus, take a moment to think about your unique situation and risk appetite before formulating an asset allocation strategy. 

Asset Allocation Needs

Here it is important to segregate your investment plans basis on: 

Your funds: Your funds come from money that you can afford to spare for investment planning. The more funds you have at your disposal, the greater the amount of risk you can take. If you have only limited funds, you should be more careful while investing. 

Your time frame: If you are ready to invest for a longer period, then you can invest in riskier investments like stocks, which have the possibility of giving higher returns in the long run. But, if you are looking for short-term investment options, then look for less volatile categories. Basically, ask your fund manager for options where you have the possibility of getting liquid cash at the earliest. 

Your dependants: If you are responsible for a large family, then you need to take their needs into consideration before investing. 

Asset allocation strategy and your risk profile:

Here are few points that can help you design your strategy- 

Aggressive: In an aggressive asset allocation strategy, there are a higher percentage of investments in high-risk assets like equity. Usually you will invest more than 60 per cent of your corpus in such assets. This sort of aggressive investment tip is best suited to individuals who can afford to take higher risks. 

Moderate: In a moderate asset allocation strategy, the proportion of lower risk investments such as debt-based options are increased, while equity plans are lowered. This type of investment strategy is best suited to individuals who can afford to participate in risky investments, but need to accumulate wealth for their dependants. Thus, there is a need to reduce their investment risk to some extent. 

Conservative: This is an investment strategy that is focused on generating regular income and protecting your accumulated wealth. 

It is important to understand how to assess and arrive at an optimal asset allocation to achieve financial goals and building wealth with minimum risks.

Investment Options in Kenya: Where to Make Money in 2014

December holidays are now behind our backs, January blues will soon varnish and the only challenge remaining this year would be to implement the many resolutions you reached with yourself for 2014. The razor thin wallet, empty fuel tanks, school fees and tense relationships characterizing this dreaded month of January will be gone immediately you receive your first pay check of 2014 in a week or two.

Despite the tough beginning to the year, majority of Kenyans remain hopeful that 2014 will bring with it better things; a bigger house, a new job, financial stability and a new car.

However, difference between those who will achieve thier dreams this year and those who won’t comes straight from the investment decisions they have made or will make this January.

For the business savvy individuals, the time to reflect on the enjoyment over the December holidays is gone.

They have already ordered consignments of goods from Dubai or China, scanning through the  newspapers for lucrative government tenders, contacting their brokers and / or financial managers on which cherry stocks to pick at the NSE, the next car, land, or real estate deal to close and the like.

Below are a few tips on where to invest and make some good money in 2014:

Stock Market

The NSE is a one hot investment option for those willing to take the risk and have a sizable financial cushion to absorb potential losses.

Measured by the NSE all share index, a well-balanced portfolio of shares in the stock market in 2013, made returns of upto 50 percent. This means that a ksh. 500,000 investment in the stock market would have swelled to 750,000 on average.

The Nairobi Stock Exchange has been on a 2-year bullish run and the indications are that the appreciation in share price is set to continue for a third year running.

Safaricom shares made headlines after soaring above the 2008 LPO price of KSh5 per share, more than doubling the investment to trade at 11.10.

However, the stock market, is quite volatile and is therefore most suited for investors with long-term investment views. It requires patience and good investment strategy as it can result in loss of investment in some instances.

Generally, there are two categories of companies listed at the Nairobi Stock Exchange; the growth counters which basically pay the investor through share price gain but offer low to zero dividends and the mature ones which pay high dividends annually.

Growth companies should be viewed as long-term investments. They include NBK, Britam, DTB Centum, and NIC, among others.

The mature stocks which pay high dividend annually, include BAT, Bamburi, EABL, Carbacid and the Nation Media Group.

A clear understanding of the performance of listing companies and the overall economic performance are good indicators of which shares to buy and which ones to sell.

Agribusiness:

Forget Maina and King'angi's cash cow, farming is becoming the new money minting machine. Young investors have realized the huge potential in this industry and the handsome returns it offers.

Besides soiling hands, setting up a value-addition plants represents a massive growth with potential for high return on investment, for the small scale investors who grow and sell agricultural products like onions, watermelons, apples, and tomatoes.

Technological advancement, such as the use of greenhouses has help farmers controlling crop growing conditions thereby almost guaranteeing good yields.

Look at the number of Kenyans scrambling for fruits and vegetables and you will realize that agribusiness is the in thing. Timing your harvest to coincide with the dry season will automatically multiply your returns.

For large scale farming investors, agribusiness also offers lucrative opportunities such as leasing land for maize, wheat, or potato farming. The high demand for Kenyan flowers oversees provides a ready market for horticultural investment farmers.

Real estate:

The boom in the Kenyan real estate sector has continued for the past few decades, lifting most investors into the millionaire class.

A quarter acre piece of land in Nairobi, Kisumu or Mombasa could earn you multi-millions either through just waiting for price appreciation or developing it into residential or commercial property.

A high-rise residential apartment, directly targeting the middle to lower income class where demand for housing is high, can fetch anything between, Sh4 million to Sh13 million depending on the location, neighbourhood and quality of finish.

The houses selling for between Sh1.5 million and Sh3.5 million targeting the lower middle class are also a good investment opportunity  for investors this year.

Establishment of county governments and the devolution of functions and civil servants to the counties,  offer good bets  as thousands of civil servants will looking for new homes.

To get the most value in future, always be sure to move in before the infrastructure. Real estate investment thrives on speculations. Therefore, if you get wind of a planned hospital or road at a site in a year or so, get in now.

The Thika Superhighway, Northern bi-pass came and went and real estate investors made a kill for their money. The Standard Gauge Railway, Outering road, Turkana oil fields and Lamu port are coming.

Government tenders:

30 per cent of all government contracts, this year, will be reserved for the marginalized: the youth, the women and the disabled. This opens a huge business opportunity for groups and individuals to do business with the state and earn some extra coin.

The most important requirement is that you must have registered company and get a KRA certificate.

The beautiful part of this investment option is that the tenders range from smaller contracts like supply of stationery to bigger ones like construction of roads. This opens the door for Kenyans from all walks of life aged 35 and below to participate.

Investment in Government tenders require individuals or companies with deep pockets. This is because government tenders require huge capitals. The cash-flow projection is rarely accurate as payments may delay by months and payment is only done after service delivery.

Foreign Trading:

The import / export business is an area likely to experience high growth especially now that the government is trying to promote its exports relative to the country's imports. Export opportunities can be exploited in the form of value added agricultural products.

Most of the Chinese products that may seem cheap to Kenyans are even even cheaper in Shanghai.

There are high chances that the Chinese earphones that you bought, in Nairobi, for ksh150, go for as little as kSh30 in Guangzhou. This is a business in which profit margins of 500 per cent is often attained.

For property developers, importing construction materials like roofing and floor tiles from China or Dubai may just help you cut costs and make huge profit.

Construction of hostels:

Expansion, Devolution add subsequent expansion of our public Universities in the last ten years has lead to at least one or more University in your county. 

However, despite the rise in admission numbers to match the expansion in public and private universities, development in accommodation facilities - hostels, have not kept the pace.

For instance, it’s now common for self-sponsored students, and at times JAB students to look for their own accommodation around our public universities.

This has opened up investment opportunities to build hostels around universities and their satellite campuses to accommodate students.

Considering the small size of a hostel room and that an investor can put multi-storey building with multiple double-Decker beds per room, the margins from this venture are high.

For monied investors, you can get into public-private sector partnerships (PPPs) with public universities.

The private developer will build the hostels on the University lands; operate them for up to a period of 25 years before leaving it to the Government.

Forex Trading for Novice

Forex currency trading is rapidly escalating as a popular online method of earning big cash profits. One of the main reasons being that investors find it relatively simple to master the techniques required to generate a great deal of money in a short time frame, given the frequency of market changes. High volatility plus the continually changing global marketplace conditions open up many buying and selling possibilities. Another factor is that the Forex market is open 24 hours a day, 5 days a week from Monday to Friday and you have virtually unlimited trading hours worldwide.

Forex currency trading has several excellent software systems that can help you to make substantial profits. But it is a good idea to research and thoroughly understand what each system provides before investing. The best suggestion is to try out a demo version of the software to see whether it meets your needs first. For those
that don’t have a lot to invest or just
want to get their feet wet before
committing too much money there.

Forex currency trading is basically exchanging different pairs of currencies buying at one price and selling at another. The intention is to make a profit whenever the currency goes up or down. Whilst this is not complicated to grasp any transactions made in the international currencies market really should be done by using a Forex broker.

When searching for a Forex broker to handle your account, it’s important to check out their capability and qualifications. Try to find a company that is well established so you can feel confident that you are getting good
advice and will get the most return on your investment. Most Forex brokers offer training online, through workshops and in some cases using 1 to 1 mentoring. Don’t make the mistake of underestimating the amount of information there is to learn before you can feel confident in making consistent profits. There is a lot of free training material available on the internet, most of it written in an easy to understand manner even for a complete novice to succeed in foreign exchange trading.

Remember that although in most cases it is safe to conduct transactions over the internet, you will still come across the crooks and the scam artists hoping to part you from your money. So just make sure you are dealing with a reputable broker. You will find that a Forex broker doesn't charge a commission for placing a buy or a sell order in the same way as a stock broker by taking a commission on the sale. Forex brokers make their money on the difference between the bid and offer prices which is known as the spread.

Brokers are also in this game for the
money and the spreads can be quite
substantial when you consider the
amount of trades that take place in any given day.
The only tools you need to get started with your Forex trading are a good computer with a fast internet
connection. On a final note keep in
mind that Forex trading isn't for everyone. You will often need to make split second decisions as prices change, which can be nerve wracking for some, but can be very rewarding when the right decision is made.

For More Information you may www.clmforex.com.

The Only Two Investment Option to Get Rich in Kenya

Everybody wants to be rich: a robber, teacher, engineer, idler, politician etc. The only difference is the method we choose to accomplish this universal dream.

Before we embark on the two investment methods of getting rich in Kenya, let us all appreciate that everybody wants to be rich and that human beings are naturally selfish. With that in mind, it follows that nobody will help you to be rich - you have to work hard and smart to be wealthy.

In Kenya, right from nursery school to campus you are prepared by your tuitors to be employed by somebody. You were taught to be smart (atleast in your school uniform), to be an early riser, to be disciplined and show utter respect to those in authority. When you pass high school with flying colours, you are invited to the University to study law, medicine and engineering. While here, they don't teach you how to start your own lawfirm, how to open and run a medical clinic or how to build an archictural firm. They teach you how to be servants, how to take instructions from your bosses and turn them into results. Your masters are the government (if you are lucky) or a mix of enterprenuers at Industrial area or upperhill.

While the instructions you received in school are enough to put milk and bread on your table, employment is never going to make you wealthy. The only two investment areas which will put real money in your pocket are entreprenuership and politics. Look the world over for the very wealthy individuals and you will agree with me. From Billgates of Microsft, Richard Brandson of Virgin Atlantic, Uhuru Kenyatta, the late Kirima, the Odinga family, Charles Njonjo, Kenneth Matiba, Daniel Arap Moi, Nicholas Biwot, Moody Awori, the list is endless.

Entreprenuership: this is one important area rarely taught in our schools. When they hint at it is a little too late. It is not uncommon to hear our leaders make speeches,  during graduation, advising young graduants not to expect jobs out there instead go and creat jobs. This is a fellow who has been, for the past 20 years, prepared psychologically to be employed and then you change the tune the last day. Seriously?
All the challenges not withstanding, entreprenuership is a very easy means to get rich. It only requires that you be conversant with the needs of your society and then devising away of supplying them at a cost. You do not have to be in Nairobi to succeed, you can identify a problem in your village, solve it, and the villagers will always reward you with cash. The key pillars of entrepreurship are problem (which are all over Kenya), Solution (which is where you come in) and reward (which will depend on the society's ability and willingness to pay for the product/service).
Hint: There are 30,000 digital tv setboxes in the country today. Nairobi alone has over 2,0000,000 (2 million) viewers. Do the math, get the difference and see what you can do with it before the new Febraury 2014 switchoff date.

Politics: politics, especially in Africa, is a lucrative business. All you need is a loud voice, a group of youthful campaigners, and four to five harambees to prove your willingness to 'serve' the society. Going by the hefty pay our MPs, senetors and county assembly representatives get, you will be rich within the first 5 year and a re-election campaign will not be neccessary. Couple this with their unethical ways of winning tenders for services they can't provide and supply of goods they can't distinguish, politics automatically qualify you as an entreprenuer and that comes with financial reward. Corruption and looting of public coffers have enlarged the bellies of most African politician.
So, how can you make money here? The money is seasonal, so you will have to wait until 2017 or put your ears out for any bi-election in your county. Meanwhile, you can start investing in harambees to start popularising yourself.

Finding Legitimate Online Business Opportunities in Kenya

The internet today is home to numerous scam as well as legitimate online business opportunities. So, if you are looking for legitimate online business opportunities in Kenya, there are some tricks you can use to ascertain the legitimacy of the site.

How To Ascertain the Opportunity is Legitimate 

1. When the deal look too good think twice. It is unrealistic that you can make a whopping ksh.500,000 in your first two weeks or a month, in a business you have no prior experience in. Any site trying to woo you with such enormous earning is possibly a scam.
2. Search the website to see if it has any contacts like phone numbers, email address, and most importantly a physical address. Try sending a message to this email address expressing your interest in the business.
3. Search for the logo of the business from reputable bodies on the internet like truste.org, Alexa Ranking and Better Business Bureau. Click on this logo to get more information about the company.
4. Check if the site offers any guarantee or free trial for some period. Also check if they offer any training, as this is vital if you are new to internet marketing.
5. You may also sign up for their free newsletter to help you understand the company and also connect you to your referrer.

It is always to your own advantage to invest time on studying these opportunities before parting with your hard earned cash.

The Basics of Conveyancing in Kenya

Conveyancing is the lawful transfer of property title from one person or a legal entity to another. It is usually a process worth paying for. For instance, if you are buying a house, it is always import to ensure that the sellers have the legal rights to do so. It also offers quicker and smoother transaction during purchase or sale of a property.
Since you cannot evade this process, it is only advisable to look for ways of saving money and time as you go through this vital process.
If you are here in Kenya and you need conveyancing services you may consider doing it online or at physically at the company's address. Online conveyancing services are both cost effective and fast. However, each transaction for a particular property can vary greatly - as the professionals search for title deeds and verify them.
The following are some key points you may need to know before doing this transaction:

What's the Cost of Conveyancing in Kenya?

The conveyancing cost varies just as the companies which offer them and the nature of the transaction. Conveyancing fee in Kenya is charged at a rate of 1,250 per lease, exclusive of legal fees. The legal fees will however depend on the Conveyancing firm. Lower fees are possible when dealing with larger firms with high transaction volumes. High costs do not usually translate to better services. So it is advisable to choose a company with proven reputation other than an expensive one.

Stages in Conveyancing
Whether you are doing these transactions online or at the company's physical address, there are three stages that conveyancing will have to follow:

1. Pre-exchange: At this stage, the original draft is considered to be negotiated by the involved parties. It includes details on the parties involved, costs, the seller's title deed and the amount of deposit to be paid. It is important to get a copy of the contract from your solicitor before making an agreement. When all these enquiries are through and both the parties are satisfied, an official mortgage offer is launched.

2. Exchange of contracts: With everybody satisfied, the contracts are signed and exchanged, and finally the buyer pays the deposit. This legally binds the two parties into a contract. The transfer documents are drawn up, transferring the title from the seller to the buyer and must be signed by both parties. Next, the mortgage documents are signed and then final enquiries are made to make sure there are no undisclosed mortgages or any other thing registered against the seller.

3. Completion: The property is handed over to the buyer and the seller has to move out the same day, if he hadn't. The payment must also be completed then the buyer receives the title deeds and a copy of the transfer documents. Extra costs like stump duty and land registry fee will need to be covered. Finally, the conveyancing solicitor carry out his due to of informing relevant authority of the transaction, paying stamp duty, registering the new ownership at the lands registry and sending the buyer a certificate of completion.

Which Law firms Offer Conveyancing Services in Kenya?

The list of law firms offering conveyancing services in Kenya is long and so may not be exhausted in this post. However, below are examples of firms you can contact for these services:

• CFL Advocates
• B M Mutie & Co. Advocates
• A F Gross & Company Advocates
• Kalinga & Company
• KN Associates LLP, Advocates & Notaries Public
• Mumbi Mionki & Co. Advocates
• Munyi Kithaka & Company Advocates
• Mwagambo & Okonjo Advocates
•  Omari Muumbi & Kiragu Advocates + +254 (020) 5201656
•  Rachier & Amollo Advocates + 254 20 2716012-6
•  Ratemo & Company Advocates -  +254 736708999
• Ratemo & Mberia Advocates
• RM Mutunga and Company Advocates
• Wambua & Maseno Advocates

The domestic conveyancing market in Kenya is price competitive, with a large number of conveyancing companies and solicitors offering similar services. It may also be tempting for one to try out 'conveyancing' for themselves but this may lead to unnecessary legal tussles.

Investments Options in Kenya: 7 Hot Investment Options for December

Personal finance blogs are a wash with advice on investment options, some of which are not applicable to Kenyans. The IRA, stocks /equity, Gold, Bonds, Forex trade, fix deposit, Oil, real estate  are just but afew investment options floated by financial advisers all over. But the question in every Kenyan investor's mind is : what are the top investment options in Kenya today?

Kenya form part of the world so most of the investment options put forward by bloggers and financial gurus will also apply here.  However, since our economy is driven by different factors, from say the West, some investment options will do well in Kenya but fail else where.

That said, it is every investor's wish to make money from his/her investment,  hence the need to explore some key issues to remember before we part with our hard earned cash for investment.

Draw a financial plan.

Before making a decision on what, where and when to invest, sit down and make an honest evaluation of your financial situation. This will help you define a purpose for your cash.

Evaluate your risk tolerance

Every investment has some degree of risk attached to it. If you intend to buy securities - such as bonds, stocks or mutual funds - it's important to understand that you could lose all or some of your money.

Taking a risk tolerance test leaves you prepared for the turbulence ahead.

Portfolio balance

It's never a good idea to have all your eggs in one basket lest all they break. Including assets with investment returns that flactuates under different market conditions in your portfolio, can protect you against significant losses.

Create an emergency fund.

A smart investor should put enough money in a savings product to deal with an emergency, like being fired suddenly. This amount should be put somewhere safe but should always be accessible wherever needed.

However, it’s also wise to have an emergency fund that are business based and that will enable you to take advantage of sudeen investment opportunities.

Avoid fraudulent circumstances

Scamers also read the headlines. They’ll often use a highly publicized news to lure unsuspecting investors and make their “opportunity” sound more genuine. Avoid scam. When the deal is to good, think twice.

With that out of the way, what are the top 7 investment options every Kenyan folk should consider this December?

Stocks.

There are lots of discounted options for security traders through which one can make some good money by marginal trading.

Bonds:
The bond market is a safer option of making money by buying government debt at a fixed return. With the numerous projects the Government is undertaking, the bond market will thrive.

Real Estate

Real estate, especially targeting the middle and lower class residential housing, is currently the most lucrative investment Kenya, given that demand outstrips supply by 100%. The prices of property are always know to appreciate.

Transportation.

Forget the stand gauge railway line, Kenyans won't shift from matatu to train. Syokimau residents are a testimony to this.  The establishment of the 47 counties have raised the demand for better transport solutions as more people travel more and  far.

Electronic Imports.

Kenyans are not going to stop buying electronics any sooner. Be it TV, Smartphone, radio, tablets, laptop, Kenyans always want to move with the technological trends. The planned digital migration has also opened an opportunity in and demand for converter boxes. So why not rush to China or Dubai and import these electronic gadgets in high demand.

County businesses:

Who will supply the  needs of the 47 county governments? Investing at the grass root in areas of hospitality, retail and services is one of the best ways to invest your money in Kenya. The county governments have generated such a huge demand, that it will take minimum 5 years to just stabilize it, more so in areas far from the three cities; Nairobi, Mombasa and Kisumu.

Salon and Beauty Shop

Any product designed to enhance beauty and is targeted to women is going to sell like hot cake in this country. From hair additions, nail polish, to skin caring creams, the demand is ever high. Now that the holidays are soon approaching, women flock boutiques for trendy clothes, weaves and beauty creams. Visit any Bestley (Bestlady Center) branch in Nairobi to prove this.
Women will spebd big to look good and thats why even the poorest will save for a nice weave. Given that nearly 90 % of women in Kenya have hair additions and an hair make lasting less than 3 weeks, you can do the math to establish the demand created for salons and beauty products.

These are the  7 hot investment opportunities in Kenya today. The fundamentals are diverse, but the return on investment, especially between now and the third quarter of 2014 will be huge for those willing to take the risks.

The Forex Market Trading: How To Make Money From The Market Trend

The market can only do one of three things at any given time: It can go up, down, or sideways. The trick to trend trading in forex is to catch the market move and price action when the market is going up or down, but stay out of the market when it is going sideways. The objective of many technical indicators that are used on forex price charts is to tell when the market is going to move up or down and signal a high probability forex trading signal.

For many traders they will wait until the short-term market trend and the long-term market trend line up, making sure that they are always placing their trades in the same direction as the overall trend pattern. The only time there may be an exception to this rule is if the trader sees a clear market pullback and wants to try and trade the retracement of the market.

One of the most popular types of chart analysis called Elliott wave analysis show that markets move in distinct patterns that include drawbacks in the price even if movement in the overall trend remains strong. One of the main rules of trading based on Elliott waves is that there will be five distinct phases of market movement, and since most currency pairs tend to stick with this type of price action than a trader who can recognize this pattern can use it as a trading signal.

When you are drawing a trendline on a forex price chart, it is important that the line touches the price level at least three times in order to be considered a valid trend. This is a simple tool that is included in every charting application and it can be used by a forex trader in a number of ways. One important way to use trend lines is to set your stop loss and take profit levels around that trend line so that you are trading with an increased probability of hitting the take profit level and missing the stop level.

Another away that traders can use the trend line as part of their trading strategy is to place a trade when the price data has clearly broken away from the line indicating a reversal. Being able to identify the overall market trend is a crucial skill for being a successful forex trader, and using the trend line on the chart of the currency pair that you are trading will help you get a sense of how the market is behaving and which direction you should be trading in.

9 Ideas on How to Succeed in Business

Architect John Kithaka began his journey in business immediately after high school at age 18. A small farming venture in his rural Kenyan hometown with US$70 as capital from pocket money his parents gave him, built his foundation in business. Today, at 40, Kithaka is the CEO and founding member of the Fountain Enterprise Programme (FEP) Group of Companies.

The group, made up of 18,000 Kenyan shareholders, has made investments in 14 companies worth $18.3 million in the financial, media, hospitality and education sectors. Despite running several successful ventures while in university and immediately after graduation, Kithaka established FEP out of a “burning desire to create a club of tomorrow’s billionaires”.

Kithaka draws a lot of inspiration from his profession as an architect, insisting that he never invests in anything until he has laid a solid and unshakeable foundation. He also must have a picture in mind of what the end project will look like and whether it will be sustainable several generations down the line.

Speaking to How we made it in Africa’s Dinfin Mulupi, the charismatic entrepreneur shared his advice to other entrepreneurs on how to be a success and maybe even a billionaire.

1.Think entrepreneurial: In an era where young people aspire to be wealthy and live in the fast lane, Kithaka advised that there is only one way to get there: through entrepreneurship. “We need people who don’t think of just being a pilot but also owning the plane; owning banks not just being bankers; and owning the hospital instead of becoming just doctors,” he said.

2. Do not go it alone: The FEP Group has 18,000 shareholders and expectations of being worth hundreds of billions (Kenyan shillings) by 2016 when its businesses mature. Kithaka argued that one of the biggest mistakes African entrepreneurs do is “going it alone”, a culture he said needs to change. “Billionaires never have a business called ‘mine’. Are you in cooperation with others such that you can get out and that business will run smoothly?” Kithaka said entrepreneurs should tap the power of many and engage positively with each other. “Great minds don’t compete, great minds pull together,” he added.

John Kithaka, CEO FE

3. Seize opportunities: The world’s most successful people, whether in business or politics, have made it because they recognised opportunities only few could see and turned challenges into breakthroughs. Kithaka recalled that while he was at university, the government announced that food prices at the university cafeteria would be increased. “I knew for sure, students would not be able to afford the food. I saw an opportunity glaring. When schools reopened, I transferred a kiosk I had in Nairobi town and brought it to the main campus to offer students alternative food. That was the beginning of my breakthrough. That was a real opportunity,” he said.

4. Work smart: “From mathematics I know, no man can make himself a billionaire by working hard,” said Kithaka. “It is only by working smart that you get there. You would need to own companies that make billions,” he explained. Everywhere in the world, Kithaka said, it is the poor who work very hard and very long hours looking for money in the wrong places.

5. Get into business early: Since his passion has always been in entrepreneurship, when he joined university, Kithaka had to make a choice between getting a first class (equivalent to an A) or coming out rich. “I was very sure I did not want to be an employee and therefore I was not keen on getting a first class. I did business while I was in school, bought a car and even registered my own architectural firm two years before graduation,” he recalled. By the time he graduated, his architectural firm had a good reputation and work experience and he was well on his way to establishing the FEP Group.

6. Invest in sustainable ideas: According to Kithaka, if you can’t see your business or wealth 70 years from now, then there is a problem. “You need wisdom in what you are doing such that 70 years from now you will have a solid base. In your mind, you should make sure that your business will not collapse in your old age.”

7. Be committed: It sounds like a cliché but Kithaka argues that his success was inspired by a vow he made, and stuck with, before turning 18. In his last year of high school, Kithaka promised his father that he would never ask for pocket money again. “It was a commitment that I would look for my own money. This was an inner drive. I did business and by the time I joined university 18 months later, I had three years worth of school fees,” said Kithaka.

8. Put your money to work: Kithaka noted entrepreneurs should go looking for ideas, not money. According to him, the poor look for money and take it to the bank where it will be safe, while the rich see the bank as the place to borrow money. “People don’t have money problems, they have idea problems. All you need is an idea and you will go to the bank and they will give you money,” he added.

9. Think long-term: When Kithaka started calling people in 2007 to invest in FEP and gave them an idea of what the group would achieve by 2016, it was only those who could see nine years ahead that invested.

“Wisdom goes for visionary people and visionaries are those people who see [further] than others can. You either see it or you don’t. A true investor understands tomorrow,” said Kithaka.

[Courtesy - How we made it In Africa]

Fundamentals of International Bank Transfers

Today, life seems to be impossible without banks. They have become part and parcel of our lives. The new generation banks have been providing a lot of useful services apart from the basic lending and saving of money. It is because of these technological developments the banking sector is being able to spread its service across space and time.

Bank to bank transfers, be it national or international is becoming very popular among common men because of the unparallel safety and security offered during such transfers. These transfers are generally completed within a couple of hours. The transaction is done only if the sender has enough funds in his account. And once it reaches the bank at the receiving end, it will be cleared immediately and can be accessed quite easily. The banks at both the sending and receiving ends must have reciprocal accounts with each other else the transaction is made to a corresponding bank with a reciprocal account.

International Bank Transfers can not be made without the SWIFT/BIC code. SWIFT code which stands for Society for Worldwide Interbank Financial Telecommunication is also known as ISO 9362 or SWIFT BIC or even BIC code of SWIFT Id is the standard format of Bank Identifier Code. It is approved by the International Standard Organization (ISO). This code is alpha numeric and represents the bank. This code is used for interbank transfers and other interbank communication for secure transactions. 

How Does It Exactly Work?

The first step is obvious. The sender will have to approach the bank or whichever financial institution he wants to send the money from. The recipient will have to provide his/her account number along with the SWIFT code of the particular bank where the recipient has the account for transaction. 

The bank at the sending end will send a secure message to the bank at the receiving end and request for the payment as per the given instructions. 

It usually takes a few hours for the transfer to be completed and the funds to reach their destination account. But for some exceptions, it may take a few days too. 

All the bank transfers collect payment for the service offered from both the sender and the recipient. The bank at the sending end will collect the free from the sender and the bank at the receiving end will deduct the fee from the amount transferred. This will mean that the amount the recipient receives will be a bit less from what the sender had originally sent.

Forex Trading Strategies Every FX Trade Investor Should Know

Online currency trading takes place all over the world, throughout the day for five days a week. When online currency trading began, only institutional investors such as investment banks and hedge funds were able to trade. But as online trading expanded, individual investors and small currencies were allowed to participate in the forex markets. Investopedia defines forex market as “The largest and most liquid market in the world with an average trade value of $ 1.9 trillion a day and includes all of the currencies in the world”. Similar to other forms of investment, currency trading is about supply and demand, the spot market lets the investors to buy and sell foreign currencies at the current trading price, spot market is the largest currency market. Futures markets are another option which lets the investors to trade different currencies including the Swiss franc, British pound and Japanese Yen. 

The strength and weakness of global currency fluctuates continuously and the objective of currency trading is to anticipate a rise in a currency’s value in relation to other currencies, foreign exchange can also be used to minimize a loss in the value of funds that may occur due to inflation or other negative forces in the market. Currency fluctuates for many reasons, but supply and demand is the major force that drives global currency prices. If a currency becomes scarcer within a country or demand for a currency increases worldwide, the value of the currency will increase. Conversely, in a country where too much money is available and or there is little demand for the currency, the currency devalues.

Factors that contribute to the demand for a particular currency include the level of balance of payments and economic growth. Why trade Forex? The extreme volatility of forex markets makes it possible to make more money compared to other traditional equity investments; however, it is important to note that the same volatility could lead to huge losses. Other benefits of trading in foreign exchange are the relative low costs of trading compared to trading in stocks. How to Start Trading? Before starting to trade in the forex market, it is necessary to study foreign market and currencies using financial newsletters and researching on the internet, it is also advisable to seek professional guidance from a forex trading specialist. Watching the trading patterns of large banks that use advanced forex trading strategies would be of great help, these banks have a lot of money at risk hence they employ the best strategies. You can start trading with an undervalued foreign currency and taking into consideration your financial capabilities make a purchase, you have to wait till the rate of foreign currency you purchased equals to that of your own currency. Once the currencies are level or appreciate to a certain extent you can convert the currency back to your own currency for a profit. 

The forex market is unregulated and the lack of a central market makes currency trading an over the counter (OTC) transaction. Individuals, corporations, governments and other institutions have access to the foreign exchange market. Technical Indicators- Moving Average Converging Divergence Technical indicators help in the process of price prediction in foreign exchange trading, the Moving Average Converging Divergence (MACD) is one of the most reliable indicators, professional traders rely on this indicator. MACD is the difference of a 12 and a 26 exponential moving average, it subtracts the 26 period from the 12 period and the result will be displayed in a single line called the MACD main line. It also indicates if market is overbought or oversold, when it is overbought, it is riskier to go long and when it is oversold it is riskier to go short. A rising MACD indicates a rising price, when the two lines meet it is considered a neutral situation. Finally a decline below neutral indicates a short term declining trend.

Trading stocks which offer high dividend and help in earning capital gains

Trading stocks which offer high dividend and help in earning capital gains are bought and sold all over the world. Blue chip stocks are traded with pride and people all around the world buy these stocks for earning. Quality companies all over the world float their stocks and shares. The entities usually go for IPOs and through initial public offering such shares are floated within the market.

Blue chip stocks and top stocks usually entail following characteristics;

Technology giants, communication providers, top end financial institutions and oil and gas companies float their stocks within the market. These stocks are traded with pride. People buy and sell these stocks for capital gains.

The stocks are also held by the investors for long term purposes. They are held for dividends and earnings which are constant in the case of these stocks. It happens so that the top end companies and entities usually present their shares for initial public offering. The IPOs are usually oversubscribed which results in balloting. As a result of balloting shares are allotted to the general public and through which one can attain proper dividend. High end stocks are usually offered at a premium. The premium price is usually more than the face value of the stock. Top end stocks are in low circulation. This is so because the holder doesn’t often trade in these stocks and he or she keeps these stocks for dividend purposes. Quality stocks are traded less often and hence their prices remain speculative rather than actual. The derivative and the futures market have made the high end stocks more tradable. It happens so that people usually buy and sell these shares through PUT and through other options. 

The prices are speculated in advance and the prices are pre determined for future trading. It makes the seller and the buyer safe and the trading for the high end stock possible. Online resources and the internet have created revolution in the stock market and the trading world. These days one can buy and sell stocks through different online portals. This makes the job of the broker easy and the commissions constant. The online trading resources not only offer trading opportunities to their investors but they also provide key data and analysis to user. They make sure that the investor makes the right decision regarding the sale and the purchase of shares and also pitch in from time to time with the expert advice. Trading websites are usually owned and managed by stock brokers who trade on the behalf of the clients. They offer guidance to their clients and also deduct commission on each transaction. Various accounts are offered in this respect by the brokers. High end accounts are usually expensive and have a minimum balance requirement. The low end accounts can be opened at will and may not require minimum balance requirement.

No Investment Option is a Magic Bullet

All investment advisers and analysts are facing a rough time addressing their audience — be it a paying clients or just media viewers and readers. 

Nothing seems to be working any more. Equity investments haven't made any progress upwards for close to six years. At the present, bonds have also turned volatile. Fixed Deposits earn nothing much when compared to inflation. The time of gold too seems to have past. Far too many individuals have their cash trapped in real estate where the asset value isn't appreciating and interest rates are starting to bite.

If convention was to be followed, then at some point in this post, you would be expecting me to come up with some form advice, some arithmetic, algorithm or formula that I would claim enables you to evade the crisis in investing and earn some decent returns. Unfortunately, no such magic bullet exists here or anywhere. As the popular joke goes, “it’s like this only”. Remember, I’m not being pessimistic here!!

Proper management of your investments, at the end of the day, only works where you have a distribution between good investment options and bad ones. The job of portfolio management then comes to avoiding bad investment options.

Depending on circumstances, there may be few good investment options or there may be more, or there may be those options with a high degree of uncertainty. However, nowadays, we don't really have a scenario where there are any investment options that you can call good with any degree of certainty. The reality is that, in every part of the economy, the chickens are coming home to roost.

So if you are looking for an investment option that will definitely beat inflation and give you some respectable return on your investment while performing as you would reasonably anticipate, then there's none. It's a matter of keeping the faith and believing hard that things have always got better in the past and so they will this time round.

Stay Wise to Invest in Stock

Investment is of utmost important in anyone’s life. There are simple rules which can make a person financially strong in his life. Just earning is not enough. After the hard work and time spent, money is earned. The proper utilization of the money earned is mandatory. Every person allocates some part of his earning as savings. Here the question arises- Is that enough? If you save money then are you doing enough to make your future secure.

To tell you the answer is NO. Apart from savings, it is essential to invest the savings at proper place and at proper time. The proper investment of savings helps in growing your money. Investment should be done with great caution. A wise decision can make your money grow. But a wrong decision can deplete your capital. There are many options available for investments. Some of which are fixed deposits, real estate, jewellery and not to forget stock market.

Coming to risk and reward ratio, investments in fixed deposits are always safe but provides with low return. Gold jewellery is always a part of portfolio. It is the most traditional form of investment. The most aggressively used form of investments is investing in stock markets but how to invest in stocks. In stock market most of the times investment turns into speculation. Instead of making money, people lose their capital. So what is the right way to invest in stock market?

Stock market is the game of demand and supply. If demand is more than supply, price goes up and vice versa. The basic things to be kept in mind while investing in stock market are- • Decide the time period for which you want to invest. Are you a long term investor or a short term trader? • Keep the blue chips stocks in your portfolio. The blue chips companies provides with better returns. Moreover they keep on giving dividends time to time. • Stay invested for a wise period. Know what your targets are. Also keep strict stop loss on the stock bought. It is said that delivery should be bought and forgotten. NO. Even in long term investments stop loss should be maintained. • Opt for a right broker. He should be able to guide you in right stocks. The brokerage charged should be minimal. • Thus, these are the simple tips on how to invest in stocks. Trade with discipline. It is the key which ensures that your investment turns into profit or loss.

Related Articles - Investing in stocks; How, to, invest, in, stocks; 

How to Select an Apt Mutual Fund Investment Option

With the increasing popularity of mutual fund investments, it is obvious for more and more people to involve in creating wealth with mutual funds. However, the most important aspect of investing through mutual funds is selecting the apt scheme that would suit your financial goals and timely needs. An investor should be aware of the parameters which determine the selection of mutual funds, as the same would help him meet his financial goals.

Most importantly, study and comprehend the various types of mutual fund investment schemes available in the market and analyse their risk-return pattern, limitations and options, objectives and strategies. As soon as you understand each and every kind of mutual fund scheme, it would help you in the selection process. The same is required for assessing your personal finances and your stage of financial goals.

The first thing to consider is the investment objective and the risk-bearing capacities of the mutual fund. Make sure that the investment objectives of the chosen mutual fund should match your financial objectives and goals. Investment objectives generally include aspects like tax planning, high returns, fixed income, long term planning etc.; and you as an investor should make sure to buy a mutual fund which is in sync with your timely financial goals and needs.

Next, purchase a mutual fund which would be in accordance with your risk tolerance capabilities. If you are a beginner, it is advisable to invest in safer and low-yielding mutual fund options like debt funds with regular income which come with low risk and low return objective. However, in case you have gained expertise and foresight about mutual fund investments, you can select high return and high risk schemes like equity funds, which are also tax-efficient.

On the other hand, if you are aiming at long-term capital appreciation, close-ended equity funds can suit your needs. Based on the state of your personal finances and future goals and objectives, you should assess your risk-tolerance level and accordingly invest in the specific kind of mutual funds. For low-risk investors, it is best to go for government-aided securities or high-rated debt papers; medium-risk takers can opt for balanced funds, index funds and asset allocation funds, whereas the high-risk bearers can choose diversified and specialized equity funds, mid-cap funds and offshore funds.

Another factor which should be considered before selecting a particular mutual fund scheme is its past performance in comparison to its competitors or other similar funds. However, make sure that you are comparing 2 or more funds in the same category. Another deciding factor should be the efficiency of the fund management team, the skill and expertise of the fund manager and the quality of fund management. You can find about them by weighing the performance of the mutual funds managed by the fund manager. Apart from that, the size and the expense ratio of mutual fund can also play a deciding role in helping the investor to select an apt and profitable mutual fund scheme.

Choosing the Right Forex Signal Provider

Forex signal services are kind of teaching services which can be obtained by a professional person in forex trading to the new baby in this market on how to calculate and guess the foreign exchange market. Beginners before entering this market need the help of such signals otherwise they will have to send hours watching their screen.

The most important function of forex signals is to support people in forex trade to either buy or sell currency pairs profitably, they provide trader with the relevant information on how to enter and exit the market. This is the important move in trading and all the traders will understand it only after they enter the market. There are forex signal services can be approached for free and there are services which cost you certain amount of fees. It is advisable to get trained on how to use these signals before subscribing to these services.

Using these trade signals for trading is a common practice among traders, if the trader wants to make use of such signals then he has to make sure that they reach him in time before the trading starts. The main motto of subscribing to these signal service is to increase of improved trades or else you might miss them altogether, generally all the traders want to receive these signals through email, desktop alert or text messages. It is recommended that before paying money you examine the services, and of course it would be a demo account that will help you in trying the quality of the trade signals you will receive. Thereafter if you find the outcome of these signals is good enough, then they can be introduced to your regular trading account.

In addition to this timing oftrading signals is the other factor to bear in mind, the signals will be of no use if their time span is small, till you understand it the trade will almost get completed.The signals which can be considered the best are the ones which are received with longer time length. You should subscribe for a signal service provider that provides the information which suits your time zone and life style.

Needless to say that all of you should be careful of the trading signal services which are fraud, this can be the fact even for free signal providers. Even though you have subscribed for these services it is best to trust your sixth sense. Never your own experience will teach you how to use the filtered information which comes to you
.