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KASNEB The Professional Journal of KASNEB Issue No. 2, April - June 2016

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EMERGING ISSUES IN HUMAN CAPITAL

PORTFOLIO ANALYSIS

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KASNEB NEWSLINE, Issue No. 2, April - June 2016 1

KASNEB

Editor HonorarisPius M. Nduatih

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KASNEB Newsline is the professional students journal of KASNEB.

The views expressed in this journal are those of the respective authors and do not necessarily reflect

those of KASNEB.

The Editor welcomes contributions from readers especially students and trainers in accountancy, finance,

management, administration, ICT and cognate subjects.

The Editor reserves the right to edit articles for the purposes of clarity and brevity.

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CONTRIBUTORS TO THIS ISSUE

Kellen Kiambati Isaac T. MainaJoseph G. Muthama Samuel M. Karanja

24 Arbitrage theories

17 Portfolio analysis for strategic managers

37 Companies Act, 2015 43 Self-esteem

68 Pictorial 73 Prize winners KASNEB is ISO 9001:2008 certified

CONTENTS KASNEB NewslineIssue No.2, April - June 2016

3 Emerging issues in human capital

Charles O. Owuor

33 Leadership qualities

Raymond Kiambati

E EMPTION POLICY X5546

KASNEB NEWSLINE, Issue No. 2, April - June 20162

From the CEO’s desk

Editor HonorarisPius M. Nduatih

Globalisation can be viewed as the integration of business activities across

geographical and organisational boundaries. Various factors have been

cited as catalysts for globalisation, key among them being advances in

technology and formation of economic trading blocks.

The impact of globalisation can be witnessed across many spheres, from consumers,

small and medium sized business entities to multinational corporations and

governments. The focus of human capital management has also been dynamically

transformed in the face of globalisation. Gone are the days when a workforce would

exclusively comprise of unicultured employees with a common domicile. It is not

uncommon today for organisations to engage employees from diverse backgrounds.

Further, buoyed by technology, employees are able to keep track of relevant global

trends which inform their perception of the working environment, among other areas.

The above trends reflect just a tip of the monumental impact of globalisaton on

human capital management. Taking a cue from these developments, we feature a lead

article on managing globalisation and diversity in the workplace. The article explores

the pertinent issues surrounding human capital management in the global arena,

including the associated challenges. The writer further investigates the concept of

workforce diversity and its link with globalisation, concluding with a strong defense

of the belief that effective management is both an ethical and a business imperative.

The second article dwells on the role of product portfolio analysis in strategic

management, with specific focus on creating a competitive edge. The writer provides

insight on the various models of product portfolio analysis, including the Boston

Consulting Group (BCG) Growth Share matrix, the General Electric (GE) matrix and

Porter’s Five Forces model.

We have also featured other articles of interest to our wide readership, including on

arbitrage theory, the new Companies Act, 2015 and on matters of self esteem. In

addition, we have featured the Revised Exemption Policy 2016 among other updates

of relevance to students and other readers.

Welcome and enjoy your reading.


The real wealth of a nation is its people. And

the purpose of development is to create an

enabling environment for people to enjoy

long, healthy and creative lives. This simple

but powerful truth is too often forgotten in

the pursuit of material and financial wealth.

Introduction

Globalisation is compell ing

organisations to rethink their

future strategies. It is now widely

recognised that transformation is a

pre-requisite to their survival and growth.

Business organisations, especially public

enterprises are experiencing winds of

change. For the human capital (HC) function,

there would not be a more exciting and

challenging opportunity than managing the

complexities of change and transformation.

HC today is playing a lead role along with

business functions in creating the necessary

momentum and internal capabilities.

What is globalisation?

Globalisation can be viewed as:

• The integration of business activities

across geographical and organisational

boundaries.

• The capacity to treat the world as

one market while dealing with many

culturally diverse merchants.

• The process by which markets expand

to include competitors and productive

inputs without regard to national

boundaries.

The system of interaction among

the countries of the world in order

to develop the global economy.

Globalisation refers to the integration

of economics and societies all over

the world. Globalisation involves

technological, economic, political

and cultural exchanges made

possible largely by advances in

communication, transportation and

infrastructure.

History of globalisation

Globalisation is not just a recent

phenomenon. Some analysts have

argued that the world economy was

just as globalised 100 years ago as

it is today. Yet the term has been

used since the 1980’s, reflecting

technological advances that have

made it easier and quicker to

complete international transactions,

both trade and financial flows. The

most striking aspect of this has been

the integration of financial markets

made possible by modern electronic

communication.

Globalisation is linked to four major

aspects:

• Trade

• Capital movements

• Movement of people

• Spread of knowledge

Drivers of globalisation

Driving factors of globalisation can be

divided into four groups:

• Market Drivers

• Convergence of per capita income

• Convergence of lifestyles

• Organisations behaviour as global

customers.

Involves movement of goods, people, capital, knowledge

GLOBALISATIONRAYMOND KIAMBATI, Management Consultant

Emerging issues in human capital

GL BALISATION AND DIVERSITY

MANAGING

IN THE WORKPLACE


Cost drivers

• Push for economies of scale

• Advances in transportation

• E m e r g e n c e o f n e w l y

industrialised countries with

productive capability and low

labour costs.

Competitive drivers

• Growth of global networks

m a k i n g c o u n t r i e s

interdependent.

• Rise of new competitors

intent on becoming global

competitors.

• Increased formation of global

strategic alliances.

Government drivers

• Reduction on tariffs and other

trade barriers.

• Privatisation of industry in

many parts of the world.

• Creation of trading blocks such

as the European Union.

Significance of globalisation to human capital management

Globalisation has elevated

the impor tance of human

capitalmanagement (HCM) in

organisations. These changes have

led to the notion of the HC system

as a strategic asset. Many of the

arguments about processes of

globalisation within the HC function

rest on the assumption that there

has and continues to be longitudinal

change in the conduct of HC. In the

intervening seven years a wide range

of contextual changes have led to

significant globalisation of activity,

including:

• The transfer of work abroad,

either to outsourced providers

or on a global in-sourcing basis;

• The e-enablement of many HC

processes;

• Greater sophistication in the

HC information technology and

new structures for international

HC functions;

• Greater competition for

talented staff at all levels of the

organisation;

• More protracted and strategic

talent pipelines.

In particular, there has been a

very strong marketing, corporate

communication and IT influence on

the HC function. The HC function

is realigning itself in response

to this process of cross-function

globalisation (building new alliances

with these functions), creating new

activity streams and new roles and

skills required of the HC function.

The role of human capital managers in a changing environment

Issues facing HC are expected to

change dramatically in the next

decades. Thus, HC professionals

must play special roles in dealing

with these changes and develop

specific competencies to support

these roles.

Workplace flexibility is expected

to be on the rise as the future

workplace, the ‘virtual office’ is

characterised by creative and

flexible work arrangements. As more

employees work offsite - up to two

thirds of an organisation in the 21st

century – there will be an increase

in emphasis on performance and

results as opposed to the number

of hours worked. In addition,

off-site employees can expect to

attend fewer meetings. Specified

work will become much more

collaborative and management will

spend nearly all its time managing

cross-functional work teams who

enjoy a lot of autonomy. In essence,

there will be a movement, a trend

towards a decentralised model of HC.

HC managers will have to

accommodate employees in

their virtual work locations and

find ways to manage corporate

culture, socialisation and employee

orientation. In order to obtain and

maintain a competent workforce,

they must act as organisational

performance experts and shape

employees behaviour without face

to face meetings.

The reason why there is no desk where you have always sat is because we’ve outsourced your job to China

HUMAN CAPITAL


Organisations must take into

account cultural differences

that shape managerial attitudes

when developing multinational

management programs. For

example, Br it ish managers

value individual achievement

and autonomy, whereas French

managers appreciate competent

supervision, fringe benefits, security

and comfortable conditions,

while Indian managers give more

importance on their culture and

tradition.

HC managers must therefore be

familiar with and understand

other cultural norms to promote

organisat ion divers i t y. An

organisation that recognises and

promotes cultural diversity will

benefit because it will be employing

the market that it serves. With

increasing globalisation and

competition within the market, a

diverse workforce is conducive to

attracting and retaining a strong

client base. While competing in an

international market, employees

from diverse national backgrounds

provide language skills and

Another expected change in HC

is the ‘Global Business’ concept in

world trade, now a major growth

during the last years and the

growth of international businesses,

especially among small firms.

Organisations rely more and more

on an organisation’s HC specialists

as the facilitators of work across

borders and among different

cultures. Therefore, they must be

knowledgeable of other cultures,

languages and business practices.

They will be required to develop

and manage an international

workforce, maintain written and

unwritten corporate polices for

transportability to other cultures,

keep top management informed of

the costs of not paying attention to

the transnational issues and provide

their services to a variety of locations

world-wide.

Concerning the recruitment in the

above mentioned ‘global business’

it will be important to determine

which strategy will be adopted by

the management.

Globalisation will impact HC

managers by requiring new skills

such as language capabilities.

For instance, in order to recruit

employees from other cultures,

HC managers will either have to

learn new languages or else they

will certainly have to have foreign

speakers on their staff. But in order

to facilitate communication among

people coming from a wide range

of language backgrounds, in most

multinationals, it is preferred to

speak English.

However, when we talk about

globalisation and culture, then

how does this relation influence

businesses and HC professionals’

attitudes?

In future, off-site employees will become a normal thing

HUMAN CAPITAL

The “Global Business” concept will require HC specialists to manage an international workforce


understanding of other cultures. HC

professionals will also be responsible

for providing cultural sensitivity

training for the organisations

employees and for managers

tHCoughout the entire organisation.

Challenges faced by a human capital manager

Unlike the other industries where

HC is considered a functional need,

there is a need to view HC as a

partner or a business enabler. The

constant challenge faced in this

area is to align HC to business. The

five R’s therefore, assume utmost

significance in HC strategy. The HC

team needs to get in right from

the stage of defining the business

strategy to Resourcing, Recruiting

the right talent, Retaining the talent,

Retraining and Restructuring.

However, if we see the scenario of

HC in IT companies, we find that

flexibility appears to be the key

for success and survival as IT has

become such a dynamic field due

to the constant developments

in the area of technology and

changing customer requirements.

Topping all these reasons is the

trend of globalisation, which tries

the HC test of endurance. The ability

and the willingness to modify job

structure, job classification and the

organisational structure as often

and as quickly as necessary are

important elements in a successful

recruitment and retention strategy

for IT professionals. This challenge of

managing expectations and change

puts constant pressure on the HC

professionals.

The challenge does not stop with

recruiting the right person but with

how we are going to manage the

performance of our employees.

The challenge would be to create

a performance culture where

opportunities are provided for

enhanced performance and where

giving out optimum performance

becomes a way of life.

Training and development is another

area. In the IT industry, training takes

on a new connotation. It is not just

about identifying training needs

and giving the required training.

It is foreseeing and anticipating

the requirements and developing

suitable training so that the

employees are well-equipped to

handle the challenges.

Another major challenge is how

we are able to incorporate all the

sub-systems in HC and help them

in achieving the ultimate goal –

exceptional performance. People

have to be groomed to get in tune

with the performance culture.

Creating an environment that

stimulates the creation of knowledge

and its sustenance throughout the

organisation is big challenge. No

longer can the HC department carry

on with its traditional functions.

However, Human Resource

Information Systems (HRIS) is to be

put in place – to build and sustain

a performance-driven culture. The

role will shift to that of facilitator.

HC will have to involve the whole

organisation in this process and act

as a counselor and facilitator and

that is the most gigantic challenge

the HC of any organisation faces.

THE 5 R’S OF HUMAN CAPITAL

MANAGEMENT

RESTRUCTURING

RESOURCING

RECRUITING

RETAININGRETRAINING

HUMAN CAPITAL


Competencies of a human capital manager

In order to effectively deal with

all the changes/challenges, HC

professionals must develop

competencies that will allow them

to carry out their roles. These

competencies include:

• Flexibility

• Team work

• Communication

• Decisiveness

• Leadership

• Strategic planning

• Network building

• Client service orientation

• Organisational awareness

• Self confidence

• Sharing of expertise

• Global and cultural

understanding

• Multiple language

competencies

In addition to increasing and

sustaining technological skills

relating to communication

developments, HC professionals may

also be required to increase their

numerical and data compilations

skills. As increasing demands merge

to provide specific measurable results

that prove effectiveness in their area,

HC professionals will be required to

produce quantifiable results that

prove that their department is

delivering specified outcomes based

on the objectives and goals set forth

by the organisation.

In addition to delivering specific

measurable developments,

managers will also need to know

what contributed to the results

declared. This may mean that HC

professionals will be required to

be familiar with and administer

employee survey and provide for

accurate data compilation and

regression analysis.

As a result of the increase in

technology, innovation and

globalisation over the last 20 years,

HC professionals around the world

are forced to be more efficient,

effective and competitive. They need

to respond to the demands of global

competitiveness by becoming more

familiar with language skills, cultural

awareness and diversity promotion.

Additionally, HC professionals

must be committed to continuous

learning, being familiar with cutting

edge communication.

If HC managers won’t pay enough

attention to their changing role,

serious consequences could result,

including the deterioration or even

perhaps the elimination of the HC

department.

Conclusion

Research has shown that the

HC function in international

organisations has to meet a series

of challenges. Three key conclusions

about the role of HC professionals

working in the field of international

recruitment selec t ion and

assessment can be drawn:

• The added value of the HC

function in an international

firm lies in its ability to manage

the delicate balance between

globally coordinated systems

and sensitivity to local needs,

including cultural differences,

in a way that align with both

business needs and senior

management philosophy.

HUMAN CAPITAL


• There now appears to be a

distinction to be made between

international HCM and global

HCM.

• In this transition, the old

functional divides between

international recruitment,

international management

development and international

reward management have

become increasingly weak.

Over the last 20 years, the workplace

has changed in more ways than one

could have ever imagined, resulting

from the increase in technology,

innovation and globalisation. The

next decade will bring even greater

change, impacting all facets of the

workplace, including major changes

for the HC department and HC

managers. In order to respond to

the demands of globalisation, HC

managers will require new skills and

competencies relating to language

and culture, technology capabilities

to facilitate overseas communication,

methods to measure and quantify

effectiveness and evaluate strategies

and return on investment. Evidently,

these new skills and competencies

will result in an emerging new role

for HC managers, requiring them

to be strategic business partners,

supportive of the overall corporate

strategy.

The future role of HC professionals

will change from a less administrative

role to more of a strategic role.

HC managers will continually

be required to prove their

effectiveness and their existence.

They will be expected to understand

international business practices and

promote cultural diversity within

the organisation. They will need to

understand the core business of the

organisation and become partners

with line managers. They will need

to prove that their initiatives and

programs are result-oriented,

providing specific measurable results

in terms of business competitiveness

that contribute positively to the

bottom-line of the organisation.

They will be required to stay

current with leading edge as more

and more organisations are faced

with the demands of globalisation

and strategic alliances with other

organisations around the world.

DIVERSITY

Definitions:

According to the Oxford Advanced

Learners’ Dictionary, diversity means

a range of many people or things

that are very different from each

other; the quality or fact of including

a range of many people or things.

According to the Chartered

Management Institute, the concept

of diversity encompasses any

sort of difference between two or

more people. These differences

may exist in terms of age, gender,

race, ethnicity, religion, sexual

orientation, socio-economic

background, education, experience,

physical appearance, capabilities/

disabilities, geographic origin, family

status and any other characteristic

that is used to distinguish between

people. In fact, anything that can

affect workplace relationships and

achievements.

Diversity means dissimilarities –

differences – among people.

Diversity embraces a wide range

of characteristics unique to each

individual. The primary categories of

diversity are genetic characteristics

that affect a person’s self image

and socialisation and over which

the individual has relatively little

influence.

Current issues of diversity posing challenges and opportunities in the workforce

Diversity raises important ethical

issues and social responsibility

issues and it is a critical issue for

organisations and if not handled

well can bring an organisation to its

knees, especially in our increasingly

global environment. There are

Physically and mentally disabled people

WORKFORCE DIVERSITYImmigrants

Gender

Age

OtherReligious affiliation

Expectations and valuesLifestyleSkill level

Education levelEconomic class

WorkstyleFunction and /or position

within the company

Racial and ethnic minorities in the country

HUMAN CAPITAL


several reasons why diversity is such

a pressing concern and issue both in

the popular press and for managers

and organisations.

Diversity creates certain advantages

to the organisation and poses certain

challenges in the workforce.

Advantages of diversity

Effective management of diversity

can improve organisational

effectiveness. When managers

effectively manage diversity, they

not only encourage other managers

to treat diverse members of an

organisation fairly and justly but also

realise that diversity is an important

organisational capitalthat can help

an organisation gain a competitive

advantage.

According to Invancevich 2003,

changing needs, looks and age of the

workforce result in more concern for

child care, elderly care and training

in understanding diversity. However,

high quality day care has made it

easier for women to help raise a

family and also begin a productive

career.

Diversity-friendly strategies can have

a significant impact on end results as

long as they are considered socially

responsible and earning favourable

returns on products and services

provided to customers.

Employers that are able to overcome

resistance to diversity may also be

in a better position to handle other

types of change. This is because,

since companies are pursuing

growth strategies, they need

employees who are flexible in their

thinking and diversity may foster

such flexibility.

As firms reach out to a broader

customer base, they need employees

who understand particular customer

preferences and a company with say

twenty different languages may have

competitive advantage for catering

to an increasingly diverse customer

base.

Research has shown that workforce

diversity makes strategic sense.

This is because different opinions

provided by culturally diverse

groups were judged to be of a

higher quality than those produced

by homogeneous groups.

Diversity promotes implementation

of affirmative action that advocates

for the rights of minorities and

women to be elevated to top

corporate positions.

DIVERSITY

DIVERSITY is a specialised term describing a workplace that includes:1. People from various backgrounds and cultures, and/or2. Diverse businesses

Benefits of leveraged diversity• Inspires innovation• Enhances creativity• Brings different frames of

reference to a problemHow to leverage diversity• Involve everyone• Facilitate cross-pollination of ideas• Create cross-functional teams

Harnessing the power of diversity: Leverage critical opposites

HUMAN CAPITAL

Workforce diversity enables generation of diversified and higher quality ideas beneficial to an organisation


Challenges posed by a diverse workforce

Diverse individuals continue to experience

unfair treatment in the workplace as a

result of tHCee (3) major diverse workforce

challenges. These are:

• Factors influenced by managerial

perception

• Overt discrimination such as glass

ceiling

• Sexual harassment created in a diverse

cultural workforce.

1. Factors influenced by managerial perception

According to Jones et al (2003) perception is

the process tHCough which people select,

organise and interpret what they see, hear,

touch, smell, and taste to give meaning and

order to the world around them. Most people

tend to think that the decisions managers

make in organisations and the actions

they take are the result of some objective

determination of the issues involved and the

surrounding situation.

Perception may be grouped into 3 groups:

• Schemas

• Stereotype

• Bias

(a) Schemas

A schema is an abstract knowledge structure

that is stored in memory and makes possible

the interpretation and organisation of

information about a person, event or

situation. They can either be functional or

dysfunctional. They are functional if they

are relatively accurate depictions of the true

nature of a person or situation thus helping

people make sense of the world around

them.

They are dysfunctional if they cause

managers and members to perceive people

and situation inaccurately and assume certain

things that are not true. Psychologist Virginia

Valian refers to such inaccurate

preconceived notions of men and

women as gender schemas. Gender

schemas are preconceived beliefs

of ideas about the nature of men

and women, their trait, attitudes,

behaviours and preferences.

Managers and all organisational

members’ perceptions about one

another are also affected by their

past experience and acquired

knowledge about people, events,

and situations - information that is

organised into pre-existing schemas.

(b) Stereotype - perception as a determinant of unfair treatment

Stereotype is simplistic and often

inaccurate beliefs about the typical

characteristics of particular groups of

people. Managers who allow stereotypes

to influence their perceptions assume

erroneously that a person possesses a whole

host of characteristics simply because the

person happens to be of a certain gender,

career, colour, lesbian/gay and so on (Mullins

2007 and Jones et al). For example African

American men are often stereotyped as

good athletes or a career woman to be a

secretary.

(c) Bias

Inaccurate perceptions leading to unfair

treatment of diverse members of an

organisation can be due to biases. Biases

are systematic tendencies to use information

about others in ways that result in inaccurate

perceptions. There are several types of biases

like:

(i) Similar-to-me effect which is a tendency

to perceive others who are similar to

ourselves more positively than we

perceive people who are different

summed up as “birds of a feather

flock together”. This can lead to unfair

treatment of diverse employees simply

because they are different from the

managers who are perceiving them,

evaluating them, and making decisions

that affect their future in the organi-

sation.

(ii) The social status effect is the tendency

to perceive individuals with high social

GENDER SCHEMA

Society’s beliefs about the traits of females and

males

Influences processing of

social information

Influences self-esteem (only behaviour or

attitudes consistent with gender schema

are acceptable)

I am a boy, so I must act like a boy

I am a girl, so I must act

like a girl

BLUE

PINK

HUMAN CAPITAL


status more positively than those with

low social status. For example, a high

status person may be perceived as

smarter and more believable, capable,

knowledgeable, and responsible than a

low-status person, even in the absence

of objective information about either

person.

(iii) The salience effect is the tendency to

focus attention on individuals who are

conspicuously different from us. When

people are salient, they often feel as

though all eyes are watching them

and this perception is not too far off

the mark. Such salient individuals are

more often the object of attention than

others and often a manager may focus

more attention on them than others,

for instance, such individuals may be

perceived to be primarily responsible

for outcomes and operations and are

evaluated more extremely positively

or negatively. A salient individual may

receive excessive praise for a good job

but when s/he misses a deadline, s/he

is excessively chastised.

2. Overt discrimination

Another challenge in the work force is overt

discrimination. Inaccurate schemas and

perceptual biases can lead well meaning

managers and organisational members to

unintentionally discriminate against others

due to their inaccurate perceptions.

Overt discrimination is knowingly and

willingly denying diverse individuals

access to opportunities and outcomes in

an organisation. This is not only unethical

but also illegal. For example, more

and more companies are facing

age discrimination lawsuits filed by

employees who believe they were

laid off from their jobs due to their

age.

Other kinds of diverse employees

may face even greater barriers, for

example, hindrances from climbing

the corporate ladder by the minority

groups like women and the disabled.

This is termed as glass ceiling. Glass

ceiling alludes to the invisible

barriers that prevent minorities and

women from being promoted to

top corporate positions. Others are

stereotyped to be less educated or to

perform only certain technical jobs

in organisations.

Therefore there is substantial

evidence that diverse individuals

continue to experience unfair

treatment in the workplace as a

result of biases, stereotypes and

overt discrimination. In one study,

equally qualified men were more

than twice as likely as women to be

called for a job interview and more

than five times as likely to receive

a job offer. On the other hand,

women are believed to accept lower

pay than men as explained by the

continuing gap in pay between men

and women.

3. Forms of Sexual harassment

There are two basic forms of sexual

harassment that is:

• Quid pro quo sexual harassment occurs

when a harasser asks or forces an

employee to perform sexual favours in

exchange for receiving some reward

like promotion, receive a raise, obtain

some other work-related opportunity,

mainly for employees to keep his or

her job or avoid receiving negative

consequences such as demotion or

dismissal, for example, “sleep with me

honey, or you are fired”.

• Hostile work environment sexual

harassment is the telling of lewd jokes,

displaying pornography, making

sexually oriented remarks about

someone’s personal appearance and

other sex-related actions that make

the work environment unpleasant. It

occurs when organisational members

are faced with an intimidating, hostile,

or offensive work environment because

of their sex.

Steps that managers can take to eradicate

sexual harassment include development and

communication of sexual harassment policy

endorsed by top management, use of fair

complaint procedures, prompt corrective

action when harassment occurs, and sexual

harassment training and education.

HUMAN CAPITAL

Inaccurate schemas and perceptual biases can lead to discrimination


Managing diversity to achieve Productivity in organisations

Managing diversity means taking steps to

maximise diversity’s potential advantages

while minimising the potential barriers such

as prejudice and bias which can undermine

the functioning of a diverse workforce.

Effective management of diversity means

much more than hiring diverse employees.

It means learning to appreciate and respond

appropriately to the needs, attitudes, beliefs,

and values that diverse people bring to an

organisation and correcting misconceptions

about why and how different kinds of

employee groups are different from one

another and finding the most effective way

to utilise the skills and talents of diverse

employees.

How to manage diversity effectively

1. Secure top-management commitment

Top management commitment to diversity

is crucial for the success of any diversity-

related initiatives and top managers

need to develop the correct ethical

values and performance or business-

oriented attitudes that allow them to

make appropriate use of their human

capital.

Providing strong leadership that

takes a strong personal stand on

the need for change and becoming

a role model for behaviour required

for change, that is, appointing

someone to head efforts to

improve opportunities for women

and minorities in the company’s

workforce.

2. Strive to increase the accuracy of perceptions

To increase accuracy of perceptions,

managers should consciously

attempt to open other points of view

and perspectives and encourage

their subordinates to do the same

and they should not be afraid to

change their views about a person,

issue, or event, but should encourage

their subordinates to be open to

changing their views in the light of

disconfirming evidence. Managers

should strive to avoid making snap

judgment about people. Judgement

should be made only when sufficient

and relevant information has been

gathered.

3. Increase diversity awareness

The ability to appreciate diversity

requires that people become

aware of other perspectives and

various attitudes and experiences

of others. Many diversity-awareness

programs in organisation strive

to increase managers and

workers awareness of their own

attitudes, biases and stereotypes

and differing perspectives of diverse

managers, subordinates, coworkers and

customers. Assessing and evaluating

“the managing diversity program” and

seeing if there is any improvement

in attitude towards diversity and so

on.

Diversity awareness programs often have

the following goals:

• Providing organisation members with

accurate information about diversity.

• Uncovering personal biases and

stereotypes and beliefs about different

groups.

• Developing an atmosphere in which

people feel free to share their differing

perspectives and points of view.

• Improving understanding of others

who are different from oneself.

4. Increase diversity skills

Efforts to increase diversity skills focus on

improving the way managers and their

subordinates interact with each other

and on improving their ability to work

with different kinds of people. This means

being able to communicate with diverse

employees as organisational members may

have different styles of communication,

and may differ in their language fluency,

use of words, nonverbal signals or the way

they perceive and interpret information.

Managers and their subordinates must

learn to communicate effectively with

one another if an organisation is to take

advantage of the skills and abilities of its

diverse workforce. Education on different

ways of communicating is essential and can

help members to interpret certain kinds

of comments and can help employees

learn how to resolve misunderstandings.

Organisational members should strive

to solve communication difficulties and

misunderstandings as they occur rather than

letting problems grow.

HUMAN CAPITAL

Diverse individuals continue to experience unfair treatment in the workplace as a result of biases, stereotypes and overt discrimination

Your computer is very powerful!


5. Encourage flexibility

Managers and their subordinates must learn

how to be open to different approaches and

ways of doing things. This means employees

must not suppress their personal styles but

must be open to and not feel tHCeatened by

different approaches and perspectives and

must be patient and flexible to understand

and appreciate diverse perspectives.

Managers should also be flexible enough

to incorporate the differing needs of diverse

employees. Diversity suggests that people

of certain religious callings might need time

off for holidays.

6. Pay close attention to how organisaitonal members are evaluated

Vague performance standards should be

avoided and whenever possible managers

should rely on objective performance

indicators or ensure that adequate time and

attention are focused on the evaluation of

employees’ performance and that evaluators

are held accountable for their evaluations.

7. Change culture and management systems

Change the performance appraisal

criteria to measure supervisors based

partly on their success in reducing

intergroup conflicts.

8. Consider the numbers

Looking at the numbers of members

of different minority groups and

women in various positions, at

various levels in the categorisation in

an organisation, can help managers

with important information about

potential problems and ways to

rectify them. If members of a certain

group are much underrepresented

in particular kinds of jobs or units,

managers need to understand why

this is the case and resolve any

problems they might uncover.

9. Empower employees to challenge discriminatory behaviours, actions and remarks

Zero tolerance for discrimination

should be implemented and

employees should be empowered to

challenge discriminatory behaviour

whether the behaviour is directed

at them or if they witness it being

directed at another employee. This

means that if managers or employees

witness another organisational

member being unfairly treated,

they should be encouraged to speak up and

rectify the situation instead of being muffled.

10. Reward employees for effectively managing diversity

If effective management of diversity is

a valued organisational objective, then

employees should be rewarded for their

contribution to this objective. For example,

after settling a major race discrimination

lawsuit, Coco Cola Company ties managers’

pay to their achievement of diversity

management.

Managers can use multi-pronged approach

to increase diversity awareness and skills

in their organisations by use of films

and printed materials supplemented by

experiential exercise to uncover hidden

biases and stereotypes. At times they can

use a forum for people to learn about and

discuss their differing attitudes, values and

experiences which can be a powerful tool

for increasing awareness.

11. Encourage mentoring of diverse employees

Mentoring is a process by which an

experienced member of an organisation

provides advice and guidance to a less

experienced member and helps the less

experienced member learn how to advance

in the organisation and in his or her career.

A mentor can help to build an employee’s

confidence and make him or her feel

comfortable engaging in unfamiliar work

behaviours.

HUMAN CAPITAL

Language and cultural diversity pause a major challange to “global businesses.”

Am not surprised. Performance by people from your community is

generally poor. I thought you would be an exception.


Central role that managers play in managing diversity

Managers’ central roles in managing diversity are:

Specific Role Example

Figurehead Convey that the effective management of diversity is a valued goal and objective

Leader Serve as a role model and institute policies and procedures to ensure that diverse members are treated fairly.

Liaison Enable diverse individuals to coordinate their efforts and cooperate with one another.

Monitor Evaluate the extent to which diverse employees are being treated fairly.

Disseminator Inform employees about diversity polices and initiatives and the intolerance of discrimination.

Spokesperson Support diversity initiatives in the wider community and speak to diverse groups to interest them in career opportunities.

Entrepreneur Commit resources to develop new ways to effectively manage diversity and eliminate biases and discrimination.

Disturbance handler Take quick action to correct inequalities and curtail discriminatory behaviour.

Capitalallocator Allocate resources to support and encourage the effective management of diversity.

Negotiator Work with organisations such as suppliers and groups like labour unions to support and encourage the effective management of diversity.

Why effective management of diversity is both an ethical and a business imperative

Principles guiding managers in managing diversity

Distributive justice: The principle of distributive justice dictates that the distribution

of pay raises, promotions, job titles, interesting job assignment, office space and

other organisational resources among members of an organisation should be fair. The

distribution of these outcomes should be based on meaningful contributions that

individuals have made to the organisation such as time, effort, education, skills, abilities,

and performance levels and not irrelevant personal characteristics over which individual

have no control over, such as age, gender or race. This does not mean the members of

an organisation receive identical or similar outcomes; rather, it means that members who

receive more outcomes than others have made substantially higher or more significant

contributions to the organisation.

Procedural justice: The principle or procedural justice requires that manager use fair

procedures to determine how to distribute outcome to organisational members. This

principle applies to typical procedures such as appraising subordinates’ performance,

deciding who should receive a raise or promotion. It also involves deciding who to lay

off when an organisation is forced to downsize by carefully appraising a subordinate’s

performance, taking into account any environmental obstacle to high performance

beyond the subordinate’s control such as machine breakdowns and ignoring irrelevant

personal characteristics such as age or ethnicity (Findings from Jones et al 2008).

There is a strong ethical imperative in many

societies that diverse people receive equal

opportunities and be treated fairly and justly.

Unfair treatment is illegal.

The role of diversity in organisations

Researchers feel that diversity is important

due to the following reasons:

• Demographic changes in the workforce.

Some European countries, for instance,

have very few young people to succeed

the ageing employees and thus the

need to integrate diversity into their

workforce to close the gap if their

organisations are to survive.

• Programs of affirmative action

and positive discrimination means

employers make an extra effort to hire

and promote those in protected groups

such as females or minority groups.

The aim is to voluntarily enhance

employment opportunities for women

and minorities.

• Employers need to emphasise external

recruitment and internal development

of better qualified minority and female

employees.

• Increasing number of women entering

the workforce need to be availed

management positions.

• There is need for fair, equitable pay to all

employees of all classes in the diverse

workforce.

According to Ivancevich (2003), there is need

for diversity in the workforce because:

• Companies are now restructuring

their firms due to economic crises

in the global market. Restructuring

means changing reporting and

authority relationships within a firm in

order to conduct business. In addition

there is emerging need in firms to

go into downsising. Downsising is

the laying off of employees. In the

process,colleagues are given new job

responsibilities and feeling of trust

HUMAN CAPITAL


and job security are tHCeatened. Equal

employment opportunity aims to

ensure that anyone regardless of race,

colour, sex or religion or national origin

has an equal chance for a job based on

his or her qualifications. There is also

the needs of contingent workers which

include those not permanent and full

time but are temporary, part-time or

leased workers normally outsourced

and hired to handle extra job tasks

or workloads. Contingent employees

are becoming a widespread part of

staffing mix of firms because part time

employees usually receive fewer fringe

benefits and often have flexible work

schedules.

• Need for firms to outsource globally.

Outsourcing is the practice of hiring

another firm to complete that which

is most important and must be done

efficiently. It is also known as employee

leasing. It is meant to improve core

business and to reduce risks.

• Differences in abilities of employees:

Some differences in employees affecting

HCM programs are due to differences in

abilities or skills which can be classified

as mechanical, motor coordination,

mental or creative. According to

psychologist some abilities are a result

of genetic factors that are rarely subject

to change through training such as

finger dexterity and response to time

but interpersonal skills and leadership

are subject to change as they can be

learnt.

Need to address diversity

Diversity is a top corporate priority to

differentiate firms from competition

in response to an increasingly diverse

consumer market place.

The need to address diversity

globally is critical “as none of us is

as strong as all of us” so there is need

to operate geographically in all areas

of the world and thus face diversity

issues.

Work life balance is one of the six

global workforce challenges being

addressed. Others are global market

place, cultural awareness, acceptance

of women and integration of people

with disabilities, race discrimination

especially in lawsuits, hiring of

minorities are all now becoming an

emerging need.

According to Werner and De

Simone(2006), there is need to

recruit and develop skilled labour

which is important for any company

concerned with competitiveness,

productivity and quality. This is to

eliminate mismatch between jobs

since jobs are growing to a number

of multiple task demands requiring

high skills, more education and

higher levels of languages and

reasoning skills than the current

ones. Therefore, a shortage of skilled

talents can damage any firm’s competitive

position.

There is need for HCM to address skill gaps

in order to avoid the consequences of not

having a workforce that can compete in the

global economy.

Conclusion

Diversity is the recognition of individual

differences that people are not

homogeneous and focuses on multiplicity

of differences among people, on variety

of people as heterogeneous groupings,

as individual differences are the basis of

diversity.

It is aimed at harnessing these differences

which will create a productive environment

in which everybody feels valued and where

their talents are being fully utilised tHCough

which organisational goals are met. Diversity

recognises and harnesses different individual

skills, talents and special contribution which

are tapped by the organisation to promote

its productivity.

Therefore, there is a strong ethical imperative

in many societies that diverse people receive

equal opportunities and be treated fairly and

justly. Unfair treatment is illegal.

HUMAN CAPITAL

Diversity finds expression in many ways

None of us is as strong as all of us together.

It pays to advertise in the

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KASNEB The Professional Journal of KASNEB Issue No. 2 April - June 2015


TOPICS FEATURED

BUSINESS VALUATION FOR MERGERS AND

ACQUISITIONS

RISK MANAGEMENT FOR CLOUD

COMPUTING

THE EQUITY VALUATION

PROCESS

IMPLEMENTATION OF TQM IN BUSINESS

PUBLIC FINANCE

THE DIGITAL ECONOMY REVISED SYLLABUSES

KASNEB The Professional Journal of KASNEB Issue No. 3 July - September 2015


TOPICS FEATURED

INTEGRITYIN LEADERSHIP

TURNAROUND STRATEGIES

INFORMATIONSECURITY

EQUITY VALUATION

BUILDING A TEAM

POWER OF THE TONGUE

STUDENT-CENTERED E-LEARNING

REVISED SYLLABUSES

SPECIMENSPECIMEN

SPECIMEN

INTEGRITY IN LEADERSHIP

?

KASNEB The Professional Journal of KASNEB Issue No. 4 October - December 2015


TOPICS FEATURED

EFFECTIVE PERFORMANCE APPRAISAL

ISLAMIC FINANCE

INTERNET OF EVERYTHING

PROFESSIONAL SKEPTICISM

STANDING OUT

PERSONAL APPEARANCE

QUALITY ASSURANCE IN INTERNAL AUDITING

TECHNICIAN TO DIPLOMA TRANSITION

PERFORMANCE

APPRAISAL

KASNEB The Professional Journal of KASNEB Issue No. 1, January - March 2016


TOPICS FEATURED

STRATEGIC IMPORTANCE OF CAPITAL MARKETS DERIVATIVES SAMPLING METHODS

IN AUDITINGINTELLECTUAL

PROPERTYCONCEPTS OF MARKETING

PORTFOLIO ANALYSIS

CONSUMPTION OF SAVING

CODE OF CONDUCT AND ETHICS

CAPITAL MARKETS

THEIR STRATEGIC IMPORTANCE IN DELIVERY OF KENYA VISION 2030


Porfolio matrix models are

used for analysing the relative

position of each of an organi-

sation’s businesses in its industry

and the relationship among all of

the organisation’s businesses. The

two popular approaches include;

(a) Boston Consulting Group (BCG)

Growth Share Matrix.

(b) General Electric Multifactor

Portfolio Matrix.

(a) Boston Consulting Group (BCG) Growth Share Matrix

Boston Consulting Group developed

and popularised a strategy

formulation approach called the

growth-share matrix. The basic

idea underlying this approach is

that a firm should have a balanced

portfolio of businesses.

It is a known fact that we become

better at doing things the more we

do them. This is the phenomenon of

a learning curve. This is manifested

through labour efficiency, work

specialisation and methods

improvement. These benefits are

what we call the experience effects.

In addition to experience effects,

growth brings about economies

of scale. Boston Consulting Group

discovered that costs decline by

up to 30% every time the output

doubles. Thus the greater the

volume the lower your unit cost.

Thus a company that has the highest

market share is likely to be more

profitable than its competitors.

Research has confirmed that market

share and profitability are linearly

related. Boston Consulting Group

Approach combined these two

ideas to form a simple 2 x 2 matrix.

This has effects on a firm’s cash flow.

Profits are not always an appropriate

indicator of portfolio performance

– they reflect changes in the liquid

assets of a company but do not

indicate the true scope of future

development.

Cash flow on the other hand is a key

determinant of a company’s ability

to develop its product portfolio.

Boston Consulting Group classifies

a firm’s products according to their

cash usage and their cash generation

along the above dimensions (market

growth and relative market share).

Market share is useful because it is

an indicator of the product ability

to generate cash. Market growth is

useful because it indicates the product cash

requirements.

This qualification is explained below:

The “Question Mark”: This is a product that

has not yet achieved a dominant market

position. It is a high user of cash because it

is in a growth market.

The ‘Star’: This is the product that has

achieved a high market share and which is

probably more or less self financing in cash

terms.

The ‘Cash Cows’: These are leaders in market

where there is a little additional growth but a

lot of stability. These are excellent generators

of cash and tend to use little because of the

state of the market.

The ‘Dogs’: Have little future and can be

a cash drain on the company. They are

candidates for divestment – Peter Drucker

described them as “investment in managerial

ego”.

Star

Cash generated xxxCash use xxx 0

Question Mark

Cash generated *Cash use --- ---

Cash cows

Cash generated +++Cash use --- ++

‘Dog’

Cash generated *Cash use - 0

Mar

ket S

hare

Relative market share

PORTFOLIO ANALYSIS FOR STRATEGIC MANAGERSBEATING COMPETITION

PAUL M. MWANGI (CPA K, B.Com), Lecturer, Brightstar Institute of Business Studies

Real

Uni

t Cos

t

Cumulative Output


Strategic alternatives

• Build market share appropriate for

question marks that must increase their

market share.

• Hold market share is appropriate for

cash cows with strong share position.

Cash generated by cash cows used to

support other businesses.

• Harvest - involves milking as much

short-term cash as possible from cash

cows that are not promising and dogs

and problem child.

• Divest - involves selling or liquidating

a business because resources invested

in it can be invested more profitably in

other businesses.

General Electric (GE) Matrix

GE and McKinsey jointly developed a

multi-factor approach along the fundamental

ideas advanced by Boston Consulting Group.

They used industry/ market attractiveness.

Determinants of industry/market attractiveness

• Market factors such as size, growth

• Competitors

• Investment factors

• Technological factors

• Other pest factors

Determinants of business strength

• Product quality

• Distribution

• Brand reputation

• Production capability

• Management skills

Porter’s 5 forces

This was adopted from Porter’s

competitive strategy. Michael Porter

identified 5 forces that influence the state of

competition in the industry. These forces

were presented as:

(a) Threat of new entrants

A new entry brings extra capacity and more

competitors such as easy to open a new

restaurant but difficult to enter the aircraft

industry.

Barriers to entry include: high capital

requirements, economies of scale, patents

and licensing requirements, raw materials,

access to distribution channels, product

differentials, reputation requirements and

switching cost of customers (time, money,

convenience).

(b) Threat of substitute products/

services

A substitute product is a product offered

by another industry that has a potential to

satisfy the same customer need. Substitutes

place a limit on prices and or profits that a

firm/industry can earn.

(c) Bargaining power of customers

Where customers have a strong growing

bargaining power, they want low prices,

better quality or service and will set

competitors against one another at the

expense of the sellers’ profits. Buyers’

Invest forgrowth

Invest selectivelyfor growth ?

Invest selectivelyfor growth ?

HarvestingStrategy

?Harvesting Divest

High

Indu

stry/

Mar

ket A

ttrac

tiven

ess

Medium

Low

Strong Average Weak

Competitive Position

High

Low business strength High market attractiveness

Build selectively

Medium business strength High market attractiveness

Invest and build

High business strength High market attractiveness

Leader: protect

Med

ium Low business strength Medium mkt. attractiveness

Harvest

Medium business strength Medium mkt. attractiveness

Select and manage

High business strength Medium mkt. attractiveness

Select and build

Low Low business strength

Low mkt. attractiveness Divest

Medium business strength Low mkt. attractiveness

Manage and earn

High business strength Low mkt. attractiveness Protect and refocus

Low Medium HighMar

ket a

ttra

ctiv

enes

s

Business strength/Competitive strength

PORTFOLIO ANALYSIS


bargaining power grows when they become

more organised, where the production

represents a fraction of buyer’s cost, when

products are undifferentiated, when the

buyer’s switching costs are low and buyers

are price sensitive because of low profits.

(d) Bargaining power of suppliers

The suppliers tend to be powerful when they

are concentrated and organised. They are

be able to advertise a better price, reduce

quantity supplied – suppliers are also

powerful where there are few substitutes,

when the supplied product is important

to suppliers’ products, when the cost of

switching a supplier are high and when

supply can downstream – best defence is to

build relationship with, and win suppliers

and so on.

(e) The rivalry amongst current

competitors in the industry

A segment is unattractive if it contains many

strong or aggressive competitors and if it is

in a declining industry. It is more unattractive

if fixed costs are high, exit barriers are high.

These conditions will lead to price wars,

advertising battles new product introduction

and will make it expensive to compete.

Generic strategies

Michael Porter developed the

concept of generic strategies in

1985. He focuses attention on a

specific type of generic strategies

i.e. general classification used to

organise a large number of possible

individual strategies. He suggested

that all competitive strategies can be

reduced to three basic ones:

(i) Cost leadership strategy

(ii) Differentiation strategy

(iii) Focus strategy

(i) Cost leadership

In this strategy, a firm sets out to

become the low cost producer in

its industry. The firm has a broad scope

and serves many industry segments and

may even operate in related industries. The

sources of cost advantage are varied and

depends on the structure of the industry.

They may include:

• The pursuit of economies of scale

• Preference access/support to the

raw material, for instance, in security

services a cost advantage requires

extremely low overheads, plentiful

sources of low cost labour and efficient

training procedures because of the

high turnover.

• Relocating to cheaper areas.

The strategic logic of cost leadership usually

requires that a firm be the cost leader and

not simply one of the several firms vying for

this position. When there is more than one

aspiring cost leader, rivalry among them is

intense because every point of the market

share is viewed as critical to success.

(ii) Differentiation strategy

A firm seeks to be unique in its industry

along some dimensions that are widely

valued by its customers. It selects one

or more attributes that many buyers in

the industry perceive as important. It is

rewarded for its uniqueness with a premium

price. This means differentiation is peculiar

to each industry, that is:

• It can be based on the product itself.

• It can be based on the delivery systems

by which it is sold.

Suppliers

Intensity of rivalry

Suppliers

BuyersIndustry

competitors

Substitutes

Threat of new entrants

Threat of substitutes

Bargaining power of suppliers

Bargaining power of

buyers

PORTFOLIO ANALYSIS

Differentiation strategy

COSTLEADERSHIP

Benefits - Costs = Net Value

FOCUS


• It can be based on the marketing

approach used to communicate with

the target market, among other factors.

In construction equipment, caterpillars

tractors have been differentiated using

product durability, spare parts availability,

good service, excellent dealer network and

so on.

(iii) Focus strategy

This is the third generic strategy which is

quite different from the other two strategies

because it depends on the choice of a narrow

competitive scope within an industry. A firm

using this strategy selects a segment or a

group of segments in the industry and tailors

its strategy to servicing with the exclusion

of others, by optimising its strategy for the

target market. The focuser seeks to achieve

a competitive advantage in its target

segment even though it does not possess a

competitive advantage in the overall market.

The focus strategy has two variants.

• The cost focus

• The differentiation focus

Under the cost focus, the firm seeks a cost

advantage in its target segment while in

differentiation focus, it seeks differentiation

in its target segment. The difference

between overall and focus differen-

tiation is that, the focus differenti-

ation looks for segments with special

needs and meets them better than

its competitors.

The cost variant of the focus strategy

depends on the difference between a

focuser target segment and other segments

in the industry.

The target segment must have buyers with

unusual needs or special needs or else the

product and delivery systems that best serve

the target segment must differ from those of

the other industry segments. The cost focuser

exploits differences in cost behaviour in

some segments while differentiation focuser

exploits the special needs of buyers in certain

segments. Broadly targeting competitors

may be under performing in meeting the

needs of a particular segment, which opens

the possibility of differentiation focus. On

the other hand, broadly targeted compet-

itors may be over performing in meeting the

needs of segments, which means that they

are incurring higher than necessary cost in

that segment. An opportunity focus may

be present in just meeting the needs such

segments have and more.

TARGET SCOPEADVANTAGE

Low cost Product uniqueness

Broad (Industry wide)

Cost leadership strategy Differentiation strategy

Narrow (Market segment)

Focus strategy(Low cost)

Focus strategy(Differentiation)

PORTFOLIO ANALYSIS


Stuck in the middle strategy

A firm that engages in each generic strategy

but fails to achieve any of them is said to be

stuck in the middle. Such a firm poses no

competitive advantage and usually records

below average performance.

A firm that is stuck in the middle will

compete at a disadvantage because the

cost leader, differentiator or focuser will

be better placed to compete effectively in

any segment. If a firm that is stuck in the

middle is likely to discover a profitable buyer,

Cost leadership

Differentiation Focus

Stuck in the

middle

the competitors with sustained

competitive advantage will quickly

eliminate that advantage.

A firm that is stuck in the middle will

earn a profit only if it is fortunate

enough to have competitors that are

also stuck in the middle. Becoming

stuck in the middle is often a

manifestation of firms unwillingness

to make a choice about how to

compete. It tries for a competitive

advantage through every means and

achieves none.

Offensive and defensive strategies

Sustainable competitive advantage

exists in a customer’s mind and is

easily lost as a result of changes

in market place and way of doing

business. Competitive advantage

depends on the markets and existing

competitors. To have a sustainable

competitive advantage, an

organisation needs to have offensive

and defensive strategies.

(a) Offensive Warfare Strategies

(i) Frontal attack

This is a direct and head on attack on

competitors. It is generally considered

the riskiest and least advised of strategies.

The challengers attack the opponent’s by

attacking the opponents strengths rather

than weaknesses. This can be done by

matching the opponent’s product quality,

price, advertising and distribution strategy.

The opponent must not be in a superior

position.

(ii) Flanking attack

Attack the enemy where they are weak or

have no presence at all. This is good for

firms with the fewer resources. The attacks

can be directed against an opponent along

two strategic dimensions; geographic and

segmental dimensions.

(iii) Encirclement attack

Involves an attack to capture a wide share

of the opponent’s territory by making an

offer that the market cannot refuse such as

improving on the opponent quality, price

advertising. To be effective the encirclement

attack must be complete and swift. It is

aimed at diluting the defender’s ability to

retaliate.

(iv) Bypass attack

The key is to avoid competition by moving

to the uncontested fields. Strategies possible

under bypass attack include; diversifying

into unrelated product, diversifying into

new geographic areas or developing new

technology for existing products.

(v) Guerrilla attack

Less ambitious in scope. It involves making

small attacks in different locations whilst

remaining mobile. The aim is to destabilise

by-products rather than blows. Involves use

of both conventional and unconventional

methods like; price cuts, advertising, legal

actions.

PORTFOLIO ANALYSIS


(b) Defensive Warfare Strategies

Only a market leader should play defense

in order to hold on to its existing markets.

(i) Position defense

This is defense of a current position by

consolidating resources within existing areas.

It is the most basic idea of defense. It is weak

in that while defending the current position,

others are planning future strategies. The

product they are defending might not be in

the market in future.

(ii) Mobile defence

Mobility prevents the attacker’s chances of

localising defense by accumulating its forces

for a decisive battle. The leader attempts

to extend its domain over new

territories that can serve as future

centres of defence and offence.

This can be done through market

broadening or market diversification.

(iii) Pre-emptive defence

This attack is the best form of

defence. It involves actually

launching an offensive against an

enemy before he starts an offensive

against the firm. Pre-emptive

defence is launched where an attack

is anticipated.

(iv) Flank position defence

The market leader should not only

guard its territory but should have

some post to serve as defensive corners

to protect a weak front. Used to occupy a

position of potential future importance in

order to deny that position to the opponent.

(v) Counter offensive defence

Attacking where one is being attacked.

This requires immediate response to any

competitors entering a segment. When a

market leader is attacked he has to respond

by a counter attack.

(vi) Contraction defence

The firm plans to concentrate on a few

areas and strategically withdraws from

some areas. This involves giving up the

weaker territories and re-assigning forces to

stronger territories. This is done when a firm

realises that it cannot defend all its territorial

profitability.

Conclusion

Gaining a competitive advantage is key to a

firm’s survival and growth. The competitive

advantage adopted by a firm should be

guided by market circumstances and

the relative strength of the competitors.

Market players should however note that a

competitive strategy is not static but should

be adapted to changing market trends.

DEFENDER

ATTACKER(1) Position(3) Preemptive

(4) Counteroffensive

(5) Mobile

(6) Contraction

(2) Flank

TYPES OF ATTACK STRATEGIES

Types of attack strategy Marketing examples

1. Frontal attack Head on competition usually undertaken by largest competitors who have muscle (resources) to engage in prolonged promotion or price wars.

2. Flank attack Attack the competition on its weakest spots (example distribution) and take advantage of this weakness to grab market share.

3. Encirclement attack Attack the competition on multiple fronts (using more than one aspect of the marketing mix strategy).

4. Bypass attack Plan to enter markets not currently considered by competition; create “blue ocean opportunities” - fight the next war.

5. Guerrilla attack Used by smaller competitors to attack by surprise to upset strategies of larger rivals; smaller competitor then withdraws to attack another day.

(2) Flank attack

(1) Frontal attack

ATTACKER DEFENDER

(3) Encirclement attack

(3) Guerrilla attack

(4) Bypass attack

PORTFOLIO ANALYSIS


ARBITRAGE THEORIE$ AND FORECASTING EXCHANGE RATES

Arbitrage and parity theories

What is arbitrage?

Arbitrage is the practice of taking

advantage of a state of imbalance

between two or more markets. A

person who engages in arbitrage is

called an arbitrageur. The arbitrageur

exploits the imbalance that is present

in the market by making a couple of

matching deals in different markets,

with the profit being the difference

between the market prices.

Arbitrage can be defined as

capitalising on market discrepancies

in the prices quoted in the foreign

exchange markets by simultaneous

buying and selling. It can also

involve simultaneous lending and

borrowing in different currencies to

take advantage of the higher interest

rates. It involves no risk and no

capital of your own. It is an activity

that takes advantages of pricing

mistakes in one or more markets.

There are three kinds of arbitrage.

Locational arbitrage

Locational arbitrage takes place

when a particular currency can be

sold at a higher price compared

to its buying price; undertaking

such transactions yields profits. In

addition, locational arbitrage leads

to the realignment of currency

exchange rates as well.

Locational arbitrage can occur when

the spot rate of a given currency

varies among locations. Specifically,

the ask rate at one location must be

lower than the bid rate at another

location. The disparity in rates can

occur since information is not always

immediately available to all banks.

If a disparity does exist, locational

arbitrage is possible, as it occurs, the

spot rates among locations should

become realigned.

Illustration one

Assume that the bid rate of a New

Zealand dollar (NZ $) is US dollar

($) 0.33 while the ask rate is $

0.335 at bank X. Assume also that

the bid rate of the New Zealand

dollar is $ 0.32 while the ask rate is

$0.325 at bank Y. Given this

information, what would be your gain

if you use $ 1,000,000 and executed

locational arbitrage? That is, how

much will you end up with over and

above the $1,000,000 you started

with?

Suggested solution

Bank X Y(Buying) Bid price $ /NZ $ $0.33 $0.32(Selling ) Ask price $/NZ$ $0.335 $0.325

Step 1

Buy NZ$ at Bank Y @ $ 0.325/NZ$

= $ 1,000,000

= NZ$ 3,076,923.08$0.325/NZ$

Step 2

Sell NZ$ to buy $ @ Bank X $ $0.33/NZ$= NZ$ 3,076,923.08 * $0.33/NZ$= $ 1,015,384.62

Step 3

Determine the profit= $1,015,384.62 - $1,000,000= $15,384.62

Illustration two

The following quotes of exchange

rates are available:

Bank A B(Buying) Bid price NZ$/$ 0.2612 0.2388

(Selling ) Ask price NZ$/$ 0.2844 0.2501

Required

Given this information, is locational

arbitrage possible? If so, explain the

steps involved in locational arbitrage

and compute the profit from this

arbitrage if you had NZ$100,000 to use.

Suggested solution

Step 1

Buy $ at Bank B @ 0.2501 NZ$/$

= $ 100,000

= 399,840.06 0.2501

Step 2

Sell $ to buy at Bank A @ $ 0.2612 NZ$/$ = 399,840.06 * 0.2612 = 104,438.22

Charles Okeya Owuor, Lecturer, Achievers School of Professionals, Nakuru


Step 3

Determine Profit = $ 104,438.22 – 100,000 = $ 4,438.22

Triangular Arbitrage

Foreign exchange quotations are

typically expressed in US $ regardless

of the country where the quotation

is provided. Cross exchange rates are

used to determine the relationship

between two non-dollar currencies.

If a quoted actual or market cross

exchange rate differs from the

appropriate theoretical or should-be

rate, triangular arbitrage becomes

feasible.

A typical triangular arbitrage strategy

involves three trades:

(i) Exchanging the initial currency

for a second;

(i) Trading second currency for a

third;

(i) and the third currency for the

initial (first currency).

Illustration 3

Assume two hypothetical currencies,

DM and FF have the following

exchange ratse:

DM value = $ 2 per DMFF value = $ 0.20 per FF

Required

(i) Determine the appropriate/

theoretical cross exchange of DM

with respect to FF.

(ii) Suppose a bank quotes cross

exchange of DM with respect

to FF = 11 FF/DM, determine

US $ amounts you will receive in

exchange for FF or you sell FF and

buy US $ if you have $10,000 to

invest.

Suggested solution

(i) FF per DM =2/0.2 = 10 FF/DM

(ii)

Cross exchange rate (?) =$ 2/ DM

= 10 FF/DM $ 0.2/FF

Step 1:

Convert $ 10000 to DM @ $2 /DM

$ 10000= DM 5000

$ 2/DM

Step 2:

Convert DM to FF @ 11FF/DM= DM 5,000 * 11ff/DM= FF 55,000

Step 3:

Convert FF to $ @ $0.2/FF = 55,000FF * $0.2/ff = $ 11,000

Step 4:

Compute the profit = $11,000- $10,000= $1,000

Covered Interest Arbitrage (CIA)

The opportunity to engage in

covered interest arbitrage arises

when the interest rate difference

between the home interest rate and

foreign interest rate is not off-set by

the forward premium or discount of

the foreign currency in the forward

market. Covered interest arbitrage

involves converting the home

currency to the foreign currency,

investing in foreign currency and

covering against exchange rate risk

by selling forward the maturity value

of the investment thereby locking-in

a rate. Covered interest arbitrage

DM

US ($) FF

$2/D

M ?

$ 0.2/ff

then involves interest arbitrage to

take advantage of higher overseas

interest rates and covering the foreign

investment position by selling forward

the maturity value of the investment.

Illustration 4

Assume the following information:

Amount to invest - $ 1,000,000Current spot rate of DM - $2/DM90 days forward rate of DM - $2.1/DM90 days interest rate in the USA - 2%90 days interest rate in country X(DM currency)

- 4%

Required

What is the rate of return for investing in

country X?

Suggested solution

Assume Home country is USA

4% - 2% ≠2.1 - 2

* 100 2

2% ≠ 5%

Step 1:

Convert/sell $ 1,000,000 to DM @ $2/DM

$ 1,000,000= DM 500,000

$ 2/DM

Step 2:

Invest in a money market instrument in country X(Treasury Bill) @ 4%

=DM 500,000 * 1.04= DM 520,000

Step 3:

Get the matured investment after 90 days @ $ 2.1 DM

= DM 520000 * 2.1/DM= $1,092,000

Step 4:

Compute the profit= $ 1,092,000 - $ 1,000,000 = $ 92,000

Step 5:

Compute the rate of return

=$ 92,000

* 100$ 1,000,000

= 9.2%

ARBITRAGE THEORIES


FORECASTING EXCHANGE RATES

Reasons for foreign investment

The decision to invest capital in a

project abroad should be based

upon considerations of expected

returns and risk (this is the same

like investing locally). However,

these factors are different in different

countries. They include:

• Risk considerations

• Return considerations

• Taxation

Foreign exchange

Foreign exchange refers to currencies

and other instruments of payment

denominated in other countries

currencies.

Factors affecting exchange rates

Export/imports

If a country exports more goods,

the importing country will have a

higher demand for the currency

of the exporting country so as to

meet its obligations. The value

of the currency of the exporting

country will therefore appreciate.

The opposite is the case if a country

imports more goods than exports.

Political stability

Unsuitable political climate will make

the citizens lose confidence in their

currency. They would therefore wish

to invest or just buy the currency of

the other countries they deem to

be stable. In so doing, the demand for the

currency of more political stable countries

will appreciate as compared to those of

politically unstable countries.

Inflation rate differential (Purchasing Power Parity Theorem)

Parity between the purchasing powers

of two currencies establishes the rate of

exchange between the two currencies.

When inflation rate differential between

two countries changes the exchange rate

also adjusts to correspond to the relative

purchasing powers of the currencies.

The decrease in expected inflation lowers the

domestic nominal interest rate, and increase

expected dollar appreciation by more than

the fall in the domestic interest rate.

This can be illustrated below.

% E (f) = I (h) – I (f) *100

I(f) + 1

Where % E(f ) is the percentage change in

the direct quote

I (h) is the inflation rate in the home market.

I (f ) is the inflation rate in the foreign market.

Illustration 5

Assume that the direct quote between the $

and the £ is £1 = $ 1.5 and that the inflation rate

in UK is 10% and that in the US is 6%

Required

Compute the % change in the direct quote and

determine the new exchange rate.

Suggested solution

% E(f) =I (h) – I (f)

* 100 I(f) + I

=0.06-0.10

* 1000.10+1

= -0.0364*100 = -3.64%

ARBITRAGE THEORIES


New exchange rate= $ 1.5 (100-3.64%)= $ 1.5 (1-0.0364) = $ 1.5 (0.9636)= $ 1.4454

Therefore new exchange rate is1£ = $ 1.4454

Illustration 6

The following are the expected interest rate

and inflation rate in Canada and Britain over

the next six months.

Country Interest Inflation rateCanada 9% 4%Britain 7% 2%

The current exchange rate between the

Canadian dollar (C$) and the British pound

(£) is 2C$ = 1£

Required

Determine the 6 months forward exchange

rate between the two currencies using the PPP

approach.

Suggested Solution

I + I(f) = f(D/F)I+ I (h) s(D/F)

= 1 + 0.02 = F(D/F)

1+ 0.04 2C$/£

Interest Rate Parity (IRP Theory ) or International Fisher Effect

This theory states that differences in interest

rate in different markets can cause a flow

of funds from markets with low interest

rate to markets with high interest rates. The

interest parity condition states that returns

on domestic and foreign deposits will be

equal.

The key assumption for this condition is

capital mobility. The return on domestic

deposit is equal to the domestic interest rate.

The return on foreign deposits is equal to the

foreign interest rate minus the expected rate

of appreciation of the domestic currency.

The international Fisher Effect can

be explained as follows:

% E(f) = 1(h) – 1(f) * 100 1+I(f)Where % E(f) = is the % change in direct quoteI(h) is the interest rate in the home marketI(f) is the interest rate in the foreign market

Illustration 7

Assume that the direct quote is country

X is DM 1 =$0.5 while the general

interest in US is 6% and general interest

rate incountry X is 3%.

Suggested solution

0.06 – 0.03 * 100 = 0.02912*100 1+0.03 = 2.91

New exchange rate

= 0.5 (1+0.0291)= 0.5*1.02910 = 0.5145 = 0.51455

Illustration 8

Assume that the spot exchange rate

of the Japanese Yen is $ 0.008437. The

one year interest rate is 7% in the US

and 2% in Japan. What will the spot

rate be in one year according to IFE?

Suggested solution

% E(f) = I (h) – I (f) * 100 1+I(f) = 0.07 – 0.02 * 100 1+0.02

= 0.05 * 100 1.02 = 4.902%

New exchange rate

= 0.008437 (1+0.04902)

= 0.08851

NB

The IRP theory can be used to predict

or determine the forward rate using the

following formular

I + I(f) = f(D/F)I+ I (h) s(D/F)

Where: r(f) = interest rate in the foreign country Ff(h) = interest rate in the home country hF(D/F )= Forward rate between the home country and foreign countryS(D/F) = Spot rate between the home country and the foreign country

ARBITRAGE THEORIES

PARITY CONDITIONS

Unbiased forward rate

INTERNATIONAL FISHER EFFECT

Exchange rate forecasts

Differences in interest rates

Differences in inflation rates

Forward rate premium or discount

Purchasing power parity

Interest rate parity Fisher effect


Balance of payment

The term balance of payment refers to

a system of government accounts that

catalogues the flow of economic transactions

between the residents of one country and

the residents of other countries. It is therefore

the fund flow statement. Continuous deficit

in the balance of payment is expected to

depress the value of a currency because

such deficit would increase the supply of

that currency relative to its demand.

Government policies

A national government may through its

Central Bank intervene in the foreign

exchange market, buying and selling its

currency as it sees fit to support its currency

relative to others. In order to promote cheap

export, a country may maintain a policy of

undervaluing its currency.

Types of exchange rates

Fixed Exchange rate

This is that rate at which the value of a

currency remains stable vis-à-vis other

currencies for a long period of time. These

rates of exchange are fixed by the Central

Bank through the process of pegging the

currency concerned, for example, if the

currency is pegged to a Dollar, then its value

remains fixed to the value of the dollar and

will move with movement in the value of

the dollar.

Advantages of using fixed exchange rates

• It stabilises the export proceeds and

therefore it may stimulate exports for

the period in which it is fixed.

• Foreign investors gauge the return

on their investments in local currency

vis-à-vis their own currencies. A fixed

exchange rate will assure these investors

of a stable return on their investment

which may induce foreign investors,

thus increasing the inflow of foreign

exchange to the country.

• It enables the government to

meet its developmental plans

whose budgets are set in local

currencies but may be financed

by foreign loans and aids.

• It may keep inflation under

control because the prices of

imported goods will remain

stable as long as the exchange

rate is fixed. This is particularly

true for imported inflation.

• Long term investment plans

can be worked out with

substantial accuracy and may

minimise budget deficits with

their negative effects.

Floating exchange rate

When the rate of exchange of

a currency is floating it is left to

move in response to different

forces (especially the balance of

payments). It is left to be determined

by the forces of demand and supply

of foreign currencies of a given

currency.

This rate may discourage investment by

foreign investors as they are uncertain about

the return to be earned on investment made

under floating rates of exchange. It may also

discourage export trade and may increase

inflation rates.

Efficient market hypothesis

The efficient market hypothesis says that

no one should pay for currency forecasting

services if the foreign exchange markets are

perfectly efficient. To be perfectly efficient

the following assumptions have to be met:

• Spot rates reflect all current information

and adjust quickly to new information.

CURRENT ACCOUNT CAPITAL ACCOUNT FINANCIAL ACCOUNT

Balance goods (visibles)Export goods minus import goods

Balance capitalImmigrants bring cash/assets into Kenya - emigrants take cash/assets out of Kenya

Balance financialForeigners buy Kenyan assets or put money in Kenyan Banks - Kenyans buy foreign assets or put money in foreign banks

Balance services (invisibles)Export Services - Import services

Balance incomeIncome earned by Kenya firms abroad - income earned by overseas firms in Kenya

Balance current transfersGifts/aid received - gifts and aid paid

ARBITRAGE THEORIES

EXCHANGE RATE SYSTEMS

Government intervention to

maintain a fixed exchange rate

Supply and demand determine the exchange rate

FIXED EXCHANGE RATE SYSTEM

FLOATING (FLEXIBLE) EXCHANGE RATE SYSTEM

MANAGED EXCHANGE RATE SYSTEM

Exchange rate generally allowed to float but

governements intervene to avoid sudden fluctuations


Exchange rates reflect all available

information if:

• There are many well informed investors

with amply funds for arbitrage

opportunities.

• There are no barriers to movement of

funds from one country to another.

• Transaction costs are negligible.

• It is impossible for any market analysis

to consistently ‘beat the market’.

• Because information that is useful for

currency forecasting tends to arrive

randomly, exchange rates follow

a random walk, and this makes it

impossible to beat the market.

• All currencies are fairly priced.

These results in no undervalued currencies

and therefore no investors can earn unusually

large profits in the foreign exchange market.

Financial theorists define three forms of the

market efficiency hypothesis:

• Weak form efficiency suggests that all

information contained in past exchange

rate movements is fully reflected in

currency exchange rates, thereby

making information about recent

trends in a currency’s price ineffective

for forecasting.

• Semi-strong form efficiency suggests

that current exchange rates reflect all

publicly available information, thereby

making such information useless for

forecasting.

• Strong form efficiency suggests that

current exchange rates reflect all

pertinent information, whether publicly

or privately available, thereby making it

so that even insiders are unable to earn

abnormal returns.

• Statistical tests of the efficient market

hypothesis have not provided much

support, at least for the strong form.

Most research supports the weak form,

while there are mixed results regarding

the semi-strong form.

Why multinationals forecasts exchange rates?

One of the goals of studying the

behaviour of exchange rates is to be

able to forecast exchange rates. An

assessment of the future exchange

rates is required for several decisions

of the MNCs. Future exchange rates

will affect all critical characteristics of

the firm such as costs and revenue.

Various operations of MNCs use

exchange rate projections including:

• Hedging currency positions

from exchange rate risk.

• Short term and long term

financing and investing

decisions

• Capital budgeting decisions

• Earnings assessment

• To assess foreign subsidiary

earnings

• To buy or sell a product in a

foreign currency.

Forecasting techniques

Exchange rates forecasts are

necessary to evaluate the foreign

denominated cash flows involved

in international transactions. Thus, exchange

rate forecasting is very important to

evaluate the benefits and risk attached to

the international business environment.

Forecasting will depend on the type of

exchange rate regimes, like fixed rate system

versus free-floating regime; it will also

depend on the period of future forecast like

short term horizon versus long term horizon.

There are four approaches to forecasting

foreign exchange rates:

Forecasting using the balance of payment approach

Under a fixed exchange rate system the

government bears the responsibility to

ensure a BOP near zero. If the sum of

the current and capital accounts does

not approximate zero, the government

is expected to intervene in the foreign

exchange market by buying or selling official

foreign exchange reserves. If the sum of the

first two accounts is greater than zero, a

surplus demand for the domestic currency

exists in the world.

To preserve the fixed exchange rate, the

government must then intervene in the

foreign exchange market and sell domestic

currency for foreign currencies or gold so

Fundamental equilibrium path

Forecasting in practice

Short-term forces may induce noise - short-term volatility around the long-term path

Technical or random events may drive the

exchange rate from the long-term path

Foreign currency per unit of domestic

currency

Time

ARBITRAGE THEORIES


as to bring the BOP back near zero. If the

sum of the current and capital account is

negative, an excess supply of the domestic

currency exists in the world markets. Then

the government must intervene by buying

the domestic currency with its reserves of

foreign currencies and gold. It is obviously

important for a government to maintain

significant foreign exchange reserve

balances to allow it to intervene effectively.

If the country runs out of foreign exchange

reserves, it will be unable to buy back its

domestic currency and will be forced

to devalue. For fixed exchange rate

countries, then business managers

use balance of payments statistics to

help forecast devaluation or revalu-

ation of the official exchange rate.

Asset market approach to forecasting

The asset market approach assumes

that whether foreigners are willing

to hold claims in monetary form

depends on an extensive set of

investment considerations or drivers.

These drivers include the following:

• Relative real interest rates

are a major consideration for

investors in foreign bonds

and short term money market

instruments.

• Prospects for economic

growth and profitability are

in important determinant of

cross border equity investment in both

securities and foreign direct investment.

• Capital market liquidity is particularly

important to foreign institutional

investors. Cross-border investors are not

only interested in the case of buying

assets, but also in the ease of selling

those assets quickly for fair market

value if desired.

• A country’s economic and social

infrastructure is an important indicator

of that country’s ability to survive

unexpected external shocks and to

prosper in a rapidly changing world

economic environment.

• Political safety is exceptionally

important to both foreign portfolio and

direct investors. The outlook for political

safety is usually reflected in political risk

premiums for a country’s securities and

for purpose of evaluating foreign direct

investment in that country.

• The credibility of corporate governance

practices is important to cross border

portfolio investors. A firm’s poor

corporate governance practices can

reduce foreign investors’ influence

and cause subsequent loss of the firm’s

focus on shareholder wealth objective.

• Contagion is defined as the spread of a

crisis in one country to its neighbouring

countries and other countries that

have similar characteristics – at least

in the eyes of cross-border investors.

Contagion can cause an ‘innocent’

country to experience capital flight with

resulting depreciation of its currency.

Imports greater than

exports

Exports greater than

imports

EXPORTSIMPORTS

Currency leaves the

country

Currency returns to

the country

Reduction of domestic

consumption

Increased circulation of

money

Money supply

diminishes

Money supply

increases

Exports increase

Imports increase

Equilibrium re-established

Prices fall

Prices rise

Domestic causes

Domestic causes

Recession Inflation

BALANCE OF PAYMENTS

ARBITRAGE THEORIES

Balance of Payments Approach

The balance of payments is the second most utilised

theoretical approach in exchange rate determination:

• The basic approach argues that the equilibrium exchange

rate is found when currency flows match up current and

financial account activities.

• This framework has wide appeal as BOP transaction data

is readily available and widely reported.

• Critics may argue that this theory does not take into

account stocks of money or financial assets.

Asset Market Approach

The asset market approach argues that exchange rates are

determined by the supply and demand for a wide variety of

financial assets:

• Shifts in the supply and demand for financial assets alter

exchange rates.

• Changes in monetary and fiscal policy alter expected

returns and perceived relative risks of financial assets,

which in turn alter exchange rates.


• Speculation can both cause a foreign

exchange crisis and make an existing

crisis worse.

Technical forecasting

Technical analysts, traditionally referred to

as chartists, focus on price and volume data

to determine past trends that are expected

to continue into the future. The single most

important element of technical analysis

is that future exchange rates are based

on the current exchange rate. Exchange

rate movements similar to equity price

movements, can be subdivided into three

periods

• Day to day movement which is

seemingly random

• Short term movements extending from

several days to trends lasting several

months.

• Long term movements which are

characterised by up and down long

term trends.

Limitations of using technical forecasting to predict exchange rates

Even if a technical forecasting model turns

out to be valuable, it will no longer be

valuable once other market participants use

it. This is because their actions in the

market due to the model’s forecast

will cause the currency values to

move as suggested by the model

immediately instead of in the future.

Also, MNCs often prefer long term

forecasts. Technical forecasting is

typically conducted for short time

horizons.

Fundamental forecasting

Fundamental forecasting is based

on underlying relationships between

the currency’s value and one or

more economic factors like relative

interest rates, inflation differentials,

trade deficits, budget deficits, real

GDP, money supply and so on. The

fundamental approach is based on a wide

range of data regarded as fundamental

economic variables that determine exchange

rates. These fundamental economic variables

are taken from economic models. Usually

included variables are GNP, consumption,

trade balance, inflation rates, interest rates,

unemployment, productivity indexes, and

so on. in general, the fundamental forecast

is based on structural (equilibrium) models.

These structural models are then modified

to take into account statistical character-

istics of the data and the experience of

the forecasters. It is a mixture of art and

science. Often regression analysis is used

in fundamental forecasting. In a regression

set-up, a dependent variable (effect) is

forecast using an independent variable

(cause); constant and slope coefficients for

the straight line equation of the estimate of

the dependent variable are obtained. From

the regression equation, one can forecast the

dependent variable for a given time period.

Steps involved in fundamental forecasting

• Selection of Model (for illustration, PPP

model) used to generate the forecasts.

• Collection of St, Xt ( in the case of PPP,

exchange rates and CPI data needed)

• Estimation of model, if needed

(regression, other methods)

• Generation of forecasts based on

estimated model. Assumptions about

Xt + T may be needed.

• Evaluation, forecasts are evaluated. If

forecasts are very bad, model must be

changed.

ARBITRAGE THEORIES

Fundamental forecasting

• Fundamental forecasting is based on the fundamental relationships between economic variables and exchange rates.

• A forecast may arise simply from a subjective assessment of the factors that affect exchange rates.

• A forecast may be based on quantitative measurements (with the aid of regression models and sensitivity analysis) too.


INDISPENSABLE EROF A BUSINESS L

Joseph G. Muthama, Lecturer and management consultant

QUALITIES

According to Roger E. Dickson,

author of a Christian book

Finding the Priceless Pearl,

pearls are as the result of years of

pain and struggle. It all begins when

a small foreign particle becomes

lodged in the muscle of an oyster

shell. Over many years, the oyster

seeks to weaken the pain by coating

the foreign particle with nacre, the

substance out of which the oyster

shell is made. After years of coating,

a beautiful pearl is formed. Once the

awesome pearl is formed, it takes

great struggle on the part of those

who search for pearls to discover

those oyster shells that actually

habour the pearls.

The process of pearl formation can

be likened to the rigorous hiring or

recruitment exercise organisations

go through or must put candidates

for managerial position through

to ensure they get the best in

terms of leadership qualities. These

recruitment exercises may cost the

organisation a lot of money but it

pays of in the end if they manage to

hire the right persons to lead.

Cabinet and Principal Secretaries,

for instance, are subjected to a

rigorous recruitment and selection

exercise before being

appointed. They are later vetted by

both the Parliamentary Committee

on Appointments and the members

of National Assembly. This kind of

selection or appointment rigour is

what is required to ensure selected

leaders have what it takes to lead an

organisation.

Vincent Lombardi once said “The

quality of a person’s life is in direct

proportion to their commitment to

excellence, regardless of their chosen

field of endeavours.“ As a matter of

fact, organisational management

requires a lot of commitment,

patience, sacrifice, tolerance,

consultation and dedication

in order to realise the

organisational objectives and goals.

Exemplary leadership plays a pivotal

role in determining organisational

success. Conversely, poor leadership

can very easily lead to the downfall

of an organisation.

B e l ow, we h igh l ig ht the

indispensable qualities that are the

hallmark of a great leader.

Persistence

Modern organisations operate in

turbulent environments and success

can be elusive. Today’s leader must

not be a person who lets go easily.

Because of the many stumbling

blocks on the road to success, a

leader must of necessity have the

nerves of steel we call persistence.

Persistence helps the leader to

face the problems or challenges

head on. John Calvin Coolidge,

Jr, the 30th US President once

quipped: “Nothing in

the world can


take the place of persistence. Talents

will not; nothing is more common

than unsuccessful men with talent.

Genius will not; unrewarded genius is

almost a proverb. Education will not;

the world is full of educated derelicts.

Persistence and determination alone

are omnipotent.” The slogan “press

on” has solved and will always solve

the problems of the human race.

Integrity

In order for to be competitive and

successful in leadership, a leader

must have both personal and

professional integrity. This integrity

must be impeccable and beyond

reproach. Because of the importance

integrity carries in leadership, the

Kenyan Constitution has in fact

dedicated a whole chapter (Chapter

6) to leadership and integrity. It is

unfortunate, however, that many of

our leaders continue to abuse the

tenets of Chapter 6 with impunity.

Mark Caine says “The first step towards

success is taken when you refuse to be

a captive of the environment in which

you first find yourself.” It is of great

importance for a leader to internalise

soundness of moral character and

desist from unethical acts and being

immoral. In other words, he must

refuse to compromise his principles

at all cost in order to protect his

reputation and/or that of his

organisation. The need for a leader to

be honest, trustworthy, impartial and

morally upright cannot be gainsaid.

Chinua Achebe, a renowned literary

icon once said “One of the truest

test of integrity is its blunt refusal

to be compromised.” Research has

shown that those organisations that

uphold an organisational culture of

integrity have increased bottom-line

performance. Upholding integrity

pays dividends in the end.

Remember character is much easier

kept than recovered. According to

the late Bob Marley, a leader of the

reggae band, Bob Marley and the

Wailers, “The greatest of a man is not

in how much wealth he acquires, but in

his integrity and ability to affect those

around him positively.”

Notably, leadership is about

influence and, therefore, the need

for a leader to have positive mental

attitude cannot be overemphasised.

Article 73(2a) under Chapter 6 of the

Constitution of Kenya 2010 states

that “the principles of leadership

and integrity include objectivity and

impartiality in decision making, and

in ensuring that decisions are not

influenced by nepotism, favouritism,

other improper motives or corrupt

practices.”

Warren Buffet succinctly put it thus

“In looking for people to hire, look for

three qualities; integrity, intelligence

and energy. And if they don’t have the

first one, the other two will kill you.”

Accountability

A good leader is accountable to

his/her followers. This means that

he is responsible for his decisions

or actions and is freely willing to

LEADERSHIP

INTEGRITYIS CHOOSING

YOUR ACTIONS BASED ON

VALUES RATHER THAN PERSONAL

GAIN

TAKING THE PATH OF LEAST

RESISTANCE IS THE MOST

DIRECT ROUTE TO FAILURE


explain them when need arises.

Accountability goes a long way to

protect the character of a leader. The

late Myles Munroe said “The greatest

investment in leadership is not in

things but in people; creating leaders

is the ultimate purpose of leadership”

As much as you would like to be

effective in your leadership, you

must be accountable to the people

you lead.

Regrettably, leaders who still do

not want to be accountable to their

employees/followers still exist. They

still hold on to the old-fashioned way

of leadership that believes “the boss

is always correct.”

In this day and age, being

accountable to your subordinates

does not necessarily mean that you

are being demeaned. Consensus

building is for the betterment

of the overall wellbeing of the

organisation. Being accountable

includes financial prudence and

probity. In essence, a leader should

not oppose employees when putting

a spoke in the organisational wheel.

This undoubtedly makes employees

feel part and parcel of the team.

Dynamism

In today’s business arena, change is

inevitable. Competition has become

the order of the day, hence the need

for a leader to be dynamic. Victor

Hugo, a French poet, novelist and

playwright once said “An invasion of

armies can be resisted, but not an idea

whose time has come.”

We live in a world of rapid

technological changes and

advancement. The business world has

not been spared by these changes.

This calls for an organisational

leader to be technologically savvy

in order to remain competitive and

relevant. It behooves leaders to be

innovative and creative so as to

quickly adapt. Apple co-founder

Steve Jobs concisely explains

“innovation distinguishes between

a leader and a follower.” This means

that a leader should be flexible,

decisive, dependable, enthusiastic

and persuasive when dealing with

customers as well as their followers

or subordinates. This can be

encapsulated in a quote from E.B

White who enunciated “The only

sense that is common in the long

run is the sense of change and we

all instinctively avoid it.” Remember

your decisions as a leader have

consequences. These consequences

more often than not determine

your organisation’s achievements.

Dwelling in the past and living on

the past experience is both futile and

dangerous for a leader. “Dinosaurs”

and anachronistic leaders have no

room in modern management and

leadership practices.

Commitment

A leader must be irrevocably

committed to his duties in order

to be successful in the current

business landscape. Albert Einstein,

a theoretical physicist once said

“Only one who devotes himself to a

cause with his whole strength and soul

I will do it!I will lead others to do it...

I have to do it!I can do it when I am told to...

Why should I do it?If nobody says so...

I will not do it!I will influence others...

Leve

l of c

omm

itmen

t

THE HIERARCHY OF COMMITMENT

Commitment

Compliance

Complain

Non-committal/Condemn

LEADERSHIP

ACCOUNTABILITYIS THE GLUE THAT TIES COMMITMENT TO THE

RESULTBob Proctor


can be a true master. For this reason

mastery demands all of a person.”

More often than not and unbeknown

to them, leaders are judged by

their followers on the way they

are committed to organisational

goals and objectives. Lack of

loyalty and low attitude towards

the organisation goals could have

disastrous and devastating effects

to entire organisation performance.

Somebody said, “There are five types

of leaders; those who make things

happen; those who think they make

things happens; those who watch

things happen, those who wonder

what happened and those that did not

know that anything ever happened.”

Commitment to the mission and

vision of the organisation is the only

remedy for making things happen in

the organisation and the leader is at

the heart of this happening.

Knowledgeable

As the saying goes, knowledge

is power; a leader ought to be

knowledgeable about various

disciplines in order to be competent

and effective. Dr. Samuel Johnson

said “Integrity without knowledge is

weak and useless, and knowledge

without integrity is dangerous and

dreadful.” Hence, a leader should

have both integrity and knowledge.

It is said that information is power in

today’s world. Hence, it is imperative

for a leader to have a wealth of

knowledge on various disciplines

like mathematics, psychology,

sociology, managerial economics,

accounting, computing, knowledge

management and marketing, among

others. This will go a long way to

assist him when it comes to planning,

organising, directing and controlling

the affairs of the organisation. Alvin

Toffler said “The illiterate of the 21st

century will not be those who cannot

read and write, but those who cannot

learn, unlearn and relearn.” Thus a

leader should practice continuous

learning and improvement as well

as keep abreast of developments in the

business environment in order to be ahead

of the game. No wonder someone said that

“ when a leader stops to read, he stops being

a leader.”

Conclusion

In a nutshell, organisation leadership plays

a key role in determining an organisation’s

performance and success. Transformation

of organisations is bound to happen when

the leaders posses the forgoing qualities.

“Non-growing organisations are as a result

of non-growing leaders,” demystified John

C. Maxwell.

People follow those who know more than them. Leaders must constantly read in order to keep ahead of the followers.

COMMITMENTMEANS STAYING LOYAL TO WHAT YOU SAID YOU WERE GOING TO DO LONG AFTER THE MOOD YOU SAID IT IN HAS LEFT YOU.

COMMITMENTEITHER YOU DO OR YOU DON’T,

THERE IS NO IN-BETWEEN

LEADERSHIP


Introduction

In tune with the wishes of many

entrepreneurs, Kenya has finally joined

the league of countries that have made

far-reaching changes to their Companies

Acts. The Companies Act 2015 (the Act) is

among a suite of new laws intended to

streamline business in Kenya, by making it

easier for entities to establish a presence and

operate. The Act takes into consideration,

developments in technology and procedure,

to boost the ease of doing business. In

addition, the Act unifies and gives life to

the now generally accepted principles of

corporate governance as required by the

Capital Markets Authority and the Mwongozo

Code of Governance for State Corporations.

Below are some of the changes to the

Companies Act that entrepreneurs,

accountants, managers and other

stakeholders need to know.

• A company’s objects are now not deemed

to restrict its capacity; a company may

transact only subject to its own limitations.

• The members of a private company may

pass written resolutions circulated in hard

copy or electronic form.

• A company may notify shareholders of

notices and announcements through its

website.

• Sector-specific model articles of association

shall be prescribed.

The Act codifies directors’ fiduciary duties, as

stipulated under common law. These include:

duty to exercise reasonable care, skill and

diligence, duty to act within powers and duty

to avoid conflicts of interest in respect of

accountability and transparency. The following

provisions have been introduced:-

• Private companies must file financial

statements within 9 months of the

accounting period with the Registrar of

Companies (RoC).

• Resolutions, written memorandum and

agreements affecting the company’s consti-

tution are to be filed at the Companies

Registry within 14 days of their passing.

• Directors’ fixed term service contracts

in excess of two (2) years will require

shareholders’ approval.

• The requirements for valid execution of

a document by a company have been

changed to signing by one director in the

presence of an attesting witness.

Changes that make registration and operation of a business easier

It makes businesses easy to register and operate

The introduction of sole membership

of private companies; entrepreneurs

will no longer be required to

incorporate a company with at least

two member s(as required under the

previous Companies Act (Cap 486)).

This takes into consideration the

Government’s intention to increase

and facilitate entrepreneurial activity

in Kenya. This creates a chance for

incubation of new businesses in

Kenya.

Several provisions that remove

previous procedural bureaucracy for

compliance have also been codified.

These include:-

• No obligation for a private

company to have a company

secretary, where its paid-up

capital, does not exceed Kshs.

5 million.

• Private companies are allowed

to have only one director, while

public companies must have at

least two directors.

• The minimum age of a director

is now 18 years, down from

the previous 21 years, with no

prescribed maximum age.

Samuel M. Karanja, Principal, Adex School, Kakamega

Companies Act, 2015


• The Registrar of Companies is to be informed

of changes in a company’s directorship

or directors’ addresses within 14 days of

effecting the change.

• Transfer by the company of a substantial

non-cash asset to director shall only be by

resolution. A non-cash asset is considered

substantial where its value exceeds 10% of

the company’s assets and is more than Kshs

5 million, or one that exceeds Kshs 10 million.

• An application may be made to the Attorney

General or the official receiver for a disquali-

fication order against a director or company

secretary, where he/she is unfit to hold office,

or where the company becomes insolvent.

The duration of such an order is between 2

to 15 years.

• Takeovers and mergers will now be governed

by the Act (once it comes into force), as

opposed to the previous position, where

takeovers were governed by the Capital

Markets Act (Cap.485A) and the regulations

made thereunder.

• The introduction of comprehensive Financial

Reporting requirements in line with Interna-

tional Accounting Best Practice (developed

after Enron and Parmalat) which includes

amongst others setting out the functions,

remuneration terms and extent of liability of

Auditors (exemption of liability is proscribed).

• Golden parachutes which are common place

during the exit and/or ouster from office of

any director, are subject to approval by the

shareholders.

• Winding up (which was previously governed

and available under the old Companies

Act 1948) is now repealed as a whole and

replaced with legal concepts

such as administration,

liquidation and moratorium

which are governed by the

Insolvency Act 2015.

Other issues of concern in the act are:

• Memorandum (can be one

page long) & articles are simpler.

• Role of the company secretary

has been clarified. Corporate

governance has been clarified

with penalties for directors

and management including

for conflict of interest.

• 3 0 % m a x i m u m

local shareholding by a foreign

company.

• It gives minority shareholders

cour t powers i f main

shareholder/management

are prejudicial or make bad

decisions/transactions on

behalf of the company.

• New company is able to do

anything including borrow

unless if it is restricted.

• A company must have at least one

natural person as a director (all

companies have 6 months to rectify

this).

• Companies can buy back shares

from other shareholders.

• Kshs. 6.75 million (~$67,500) is the

minimum paid-up share capital for a

public company (this will affect some

land owning companies and large

property developers).

• Public companies need to know

who the true owners behind proxies

are.

• Share buy backs are now allowed.

• All shareholders have rights to

pre-emption when companies create

new shares - (and this can only be from

profits, not new money).

• MBO and LBO:’s banks could not

finance acquisitions, but now they

can. For instance, management can

use the assets of the company to

secure financing to buy it or pay off

foreign outgoing shareholders - (this

opens another exit opportunity for

investors).

Minimum age for a director is 18 years

Sorry sir, the shareholders had not approved the golden parachute

COMPANIES ACT

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A different way to heal your self-esteem

To say that our self-esteem is low is to

compare it to something higher. But

to be able to attain that higher degree

could only mean that there is still something

beyond that. How high is high enough? How

much increase is really necessary? In truth,

it is not an increase in self-esteem that we

should aim for, but a complete healing of

our wounded sense of self worth.

You need to rebuild from the ground up

Before we could attain true healing, we must

first recognise our wounds. Before we could

rebuild our sense of worth, we must first

acknowledge how broken it really is.

Where is your self-esteem founded? How firm

is that foundation from which it is currently

built?

Are you confident because you are

beautiful? But what if you mingle

with others who are more beautiful

than you? And for how long will you

stay that way? What happens when

you grow old and that beauty fades?

Are you secure with your success?

What if the business or the reputation

you’ve built suddenly falls? What are

you worth by then? For how long

could you hold on to your riches?

Can you still enjoy any of it to your

grave?

All our efforts of increasing our self-esteem

are futile for in the end, all such efforts lead

only to fear; the fear of losing everything we

have ever gained.

There is a different way to heal

The healing of our wounds can no longer

depend on the external actions we take

such as working harder, eating healthier

or studying longer hours. The only way to

healing is to be healed from within because

our wounds are not wounds of the body,

but of the soul.

Deep in our souls, we feel a great emptiness

and uncertainty. We feel compelled to

measure up to the standards of other people

while at the same time, not being able to

measure up to our own sense of wholeness.

We try to be strong, yet it seems we could

never be strong enough. We even try to be

good, but we could never be good enough.

SELF-ESTEEMISAAC T. MAINA (CPA), Lecturer, Excel Institute of Professionals, Thika

WHAT YOU THINK OF YOURSELF

IS MUCH MORE IMPORTANT THAN

WHAT PEOPLE THINK OF YOU


We are always followed by our sense of

shame and so we hide ourselves with

masks of perfection and of beauty. Beyond

that mask however, we feel inadequate, and

exhausted from trying over and over again.

How we could achieve healing

Healing begins when we STOP our frantic

efforts to keep up with others. Healing begins

when we are able to face our worst pictures

of ourselves and still believe that we are

worth something.

What are you worth?

You are worth more than you ever thought

yourself to be. You are worth more than your

body or your intelligence or your strength.

You are worth more than your success and

your riches. These things are given to you

but they are not the essence of who you are.

Your real worth is your likeness to God

Himself. It is that spark which came from

ancient times, that breath which made you

think and move and love.

Because you can be a vessel of God’s joy, you

are worth something. Because you can be an

object of His love, you are worth so much

more than all the stars combined.

Your worth is not in what you

possess, but in Him who possesses

you.

Your worth is not in how you can

cover up your imperfections, but in

how God can make you perfect by

receiving all that He could ever give

to you.

Only in losing everything can you

realise how broken you are. Only in

being broken can you be healed by

knowing how valuable you are to the

only One who can heal you.

Below are common areas of our

self-esteem’s woundedness. Let us

try to find their healing by bringing

them to the light of God’s love for us

from the ultimate source of joy and

self-worth.

Common areas of our woundedness

1. Beauty

Even the most beautiful among us

will grow old someday. The beauty

that we envy now is but a fleeting

joy. Others are not worthier to be

loved just because they are more

beautiful. We become beautiful

because of God’s great love for

us. He bequeaths us the inner

beauty that pulls others towards us

irrespective of our outward physical

appearance. Was Mother Teresa a

beauty queen? No! Yet with all the

wrinkles on her face, she radiated a beauty

beyond understanding; one that endeared her

to the whole world. Marylyn Munroe may have

been considered one of the most “beautiful”

ladies of her time but how many lives were

positively touched by her “beauty.” Yet, the inner

beauty of Mother Teresa’s being lingers on in

the minds and souls of many. You are loved and

remembered more for your inner beauty than

your outward physical appearance. That is the

bottom line.

2. Intelligence

Our intellect, no matter how advanced it may

be, is nothing as compared with the minds of

angels. Similarly, no matter how great angels’

wisdom may be, it is nothing as compared to

the depths of God’s wisdom. God can grant us

wisdom we could never find in all the books

of the world, but this is not the reason why we

should feel more worthy or less worthy in His

Presence.

3. Strength

We have but a limited time on earth. The

healthiest and the strongest among us cannot

SELF-ESTEEM

This is the guy responsible for how you feel

Beyond the masks of perfection, many souls are hurting

It’s NOT WHAT YOU ARE that is holding you back. It’s what YOU THINK YOU

ARE NOT.


even live for two centuries. To base our worth on

our physical strength is to look down on people

just because they are disabled or sick or dying.

Every man has God’s dignity in him, no matter

his physical strength.

4. Wealth/success

Wealth does not indicate that one man is

better than the other. It just means that one

is more endowed with money or possessions.

Endowments are of different nature. These

are the ones that counts for wealth. Each one

of us is endowed differently so that we can all

complete the mosaic of the world. The material

things we own will someday rot and decay. The

worldly success we have will one day fade away.

None of these will be written on your epitaph.

Our contribution to humanity is finally what

determines how wealthy we are. And this is what

should count for our worth. This is not to say that

material wealth and success is bad; but it should

not be used as the measure of a man’s worth or a

reason to look down upon others. Just because

Jane lives in a posh estate and you live in a slum

should not make you feel unworthy. It should

only make you feel challenged; and that is only if

you feel uncomfortable where you are. If wealth

meant all that, most of us would be unworthy.

5. Social skills

Other people may be better at mingling in

social events and in communicating with other

people. They appear attractive, they attract the

admiration of many. Just because we are not

good at that does not mean we should hold

ourselves in high esteem. We have other abilities

that those others may not have. Just as they

shine at social events, we too have our moments

of shining on account of our unique abilities. In

spite of our station or position, as created by

man, we all have some one who looks up to us.

6. Talent

What is talent? It is but a gift from God, and for

this, no one should boast. Each one is given a

unique gift for in truth, we are God’s wonderful

gift to each other. Let each one mind

his own and improve the gift he is

given.

7. Goodness/ Holiness

Only God is holy. No person is really

holy no matter how good he or she

appears to be. If we had no need

to be saved from ourselves, Jesus

wouldn’t have died for us all. Let none

boast therefore that he is kinder or

braver or more patient. We do not

earn God’s love with our goodness.

We become good because God has

guided us patiently towards the path

of His goodness. All that we can offer

God is our gratitude for all the GRACE

granted to us.

Conclusion

It is a fact of life that there will always

be those below and above us in

many aspects and all walks of life. We

must learn to be contented, one step

at a time, at all stages of our progress

towards achieving our goals. We must also

learn to accept what we cannot change and

seek God’s wisdom to know the difference.

Otherwise, we will always be comparing

ourselves with others and in the process

erode our sense of self-worth. We therefore

cannot wallow in self pity. We are our own

worst enemy. We use standards of self worth

created by man to judge ourselves. As a

result, we punish our inner selves in an effort

to live up to those standards. Yet if we were

to remain true and comfortable to whom

God has created us to be, we would be much

happier. We must stop judging ourselves

harshly against others. We must learn to be

our own cheer leaders. Within ourselves is a

never-drying source of self-worth installed

and certified by our Maker. Whenever the

whispers of inferiority and self-pity ring in

your ears, you can always run back inside

yourself to draw from that eternal and divine

source. With each new day, you can stand on

the roof top and declare, “I have the brand

of God on me, I am unique and special, I am

the best in my own way. No one can ever

take that away from me. To God be the glory.”

SELF-ESTEEM

It’s all in the mindHave a winner mentality

Be your own cheer leaderYou must love yourself first before others can do

I love me


I. HOW TO CREATE A STUDENT ACCOUNT ON THE KASNEB STUDENT PORTAL

All students are required to open a

student account on the KASNEB website.

To open the account, follow the steps below:

1. Click on the student login link then

choose the student icon or proceed

to click the student icon if you use the

direct link (http://online.kasneb.or.ke )

to the student portal.

2. Click on create account and select

whether you have a Student Registration

Number or not and proceed to provide

names, preferred email address and a

strong password (which will be used

for future access to self information)

and click save.

3. Provide the email address and password

used when creating the account and

click unlock to login in.

4. Select the “Registration Details” tab.

5. Access the “Course Choice” tab.

6. Select the examination from the

dropdown box, click on the “Yes”

checkbox and provide the registration

number without the prefix (e.g. if

your registration number is

NAC/68148, provide 68148 as

the registration number) and

click save.

Benefits

You will be able to:

• Download authority to sit for

examination/timetable

• Result summary.

Once the website upgrade is finalised in the

near future, you will be able to:

• Edit your contact address

• Check payment status

• Book for examinations.

Students are hereby advised to ensure they have

active student accounts given that with effect from

1 July 2017, timetables, result summaries and other

individualised communication will be channelled

through the student accounts.

II. CALLING ON KASNEB STUDENTS WITH DISABILITIES

We are in the process of enhancing disability

mainstreaming at KASNEB. This is in an effort to

improve our service delivery to our students with

disabilities.

In this connection, KASNEB wishes to invite any

student with a disability to forward the following

details to KASNEB:

• Full name and National Identification/Passport

Number.

• KASNEB registration number.

• Current email, telephone number and

postal address.

• Nature of disability.

Whether registered with the National Council

for Persons with Disability and if so, details

of the registration.

Students with disability are encouraged to

register with the Council. Further details on

the Council are available on the Council’s

website www.ncpwd.go.ke


III. KASNEB STUDENT FEE COLLECTION ACCOUNTS WITH BANKS

Students, trainers, parents/guardians/sponsors, employers and other stakeholders

are hereby informed that KASNEB has opened student fee collection accounts with

the following banks:

a) National Bank of Kenya Ltd. (NBK)

Account Number: 01001031572601

b) Equity Bank Ltd.


c) Kenya Post Office Savings Bank (Postbank)


d) Co-operative Bank of Kenya Ltd.


The bank accounts are already operational. KASNEB is in the process of opening

additional bank accounts. Student will be informed accordingly.

Students are required to complete the appropriate KASNEB forms and relevant fee

deposit slips (except for Postbank which does not use deposit slips). The students will

be issued with one copy of the deposit slip and a computer generated slip for their

records. However, for Postbank only a computer generated receipt will be issued.

Upon payment of the requisite fees to the bank, a cash deposit receipt will be issued

to the payee. The completed KASNEB forms will be left with the bank for onward

transmission to KASNEB together with one copy of the deposit slip.

Students are advised that payment of fees at KASNEB offices will soon be phased

out and therefore they should utilise the available channels through the banks.

Note: Students should ensure that all documents requiring certification, such as copies

of academic and professional certificates and identity card/passport are certified

before being handed over to the bank.

IV. BANNING OF MOBILE PHONES FROM THE EXAMINATIONS ROOM

All students are hereby informed that mobile phones

were banned from the examinations room with effect

from the November/December 2014 sitting.

Students are further required to note that disciplinary

action will be taken against any student found in

possession of a phone in the examination room,

regardless of whether the phone was in use or not at

the time of its detection.


V. KASNEB SERVICES NOW AVAILABLE AT HUDUMA CENTRES

We are pleased to inform our stakeholders that KASNEB services are now available at the following Huduma Centres:

NAME HUDUMA CENTREKASNEB MOBILE NUMBER

EmailSAFARICOM AIRTEL

Anne K. Wandeto Kibera, Nairobi 0701698149 0737018536 [email protected]

Anthony M. Kimani Nyeri 0701698213 0737256315 [email protected]

Caroline M. Makutwa GPO, Nairobi 0701699013 0737315992 [email protected]

Christine M. Ndwiga Meru 0701699017 0737422739 [email protected]

Collins M. Okomo Kisumu 0701699026 0737492586 [email protected]

Edith A. Were Mombasa 0701699078 0737516847 [email protected]

Egrah K. Masese Kisii 0701711465 0737543023 [email protected]

Maurice O. Gwaye Makadara, Nairobi 0701713039 0737618421 [email protected]

Modesta C. Langat Nakuru 0795431440 0735031908 [email protected]

Timothy K. Rotich Eldoret 0701713366 0737831524 [email protected]

The services offered at the KASNEB counters at the

Huduma Centres include:

(a) Inquiries

(b) Fee payment at the Huduma Centre using Posta Pay

(c) Student registration

(d) Examination entry

(e) Exemptions

(f ) Registration renewal

(g) Request for dispatch of certificates

VI. KASNEB CONTACTS

+254 - (020) 4923000 www.kasneb.or.ke

072220121407742012140780201214073460062407920006380792002351

KASNEBOfficial

[email protected] @KASNEBOfficial

KASNEB Towers, Hospital Road, Upper Hill

P.O. Box 41362 - 00100 Nairobi - Kenya

KASNEB Desk at Huduma Centre, Nakuru


INTRODUCTION

The CICT examination syllabus

requires candidates to undertake

project work before they can be

awarded the final certificate of

the professional examination. A

candidate will not be awarded the

final certificate before successfully

completing the project work.

Candidates are required to

undertake the project work within

twelve (12) months after successfully

completing CICT Part III. Candidates

who commence the ICT Project after

one year period since completing

Part III examination papers will be

required to pay late project fee of

50% of the normal ICT Project fee.

In executing the project work,

candidates will be expected to:

(a) Produce complete, well-docu-

mented information systems.

(b) Demonstrate that they can

solve information processing

problems using the most

appropriate means available

to them.

(c) Develop complete working

solutions to business problems.

(d) The project should therefore

be carefully selected in order

to allow candidates to develop

systems that demonstrate

skills of practical application

and problem solving, as well as

techniques of documentation

and system testing.

Candidates are advised to identify

projects that will allow them to

develop systems which will run on

the equipment available at their

training institutions. The systems

may be developed on standalone

or networked computers.

On completion of the project,

candidates will be expected to

prepare and submit to KASNEB a

project report which will among other

things, contain selected samples of

evidence that demonstrate the skills

used to develop the solution.

Candidates will be required to make

an oral presentation of their project

to a KASNEB examiner.

1. PROJECT PROPOSAL

Candidates with the assistance

of their trainers will be required

to develop suitable ICT project

proposals. Candidates are advised

to choose projects which can be

completed within a duration

of four months including the

preparation of a project proposal.

VII. CICT EXAMINATION

ICT PROJECT WORK GUIDELINES


1.1 The project work will involve:

• Finding out how the current

system works.

• What are its inputs and outputs.

• What the users would like the

new system to do.

1.2 The candidates will specifically

be expected to:

• Analyse a real problem,

identify the requirements of a

potential user and identify the

parts which are possible for a

computer solution.

• Undertake a feasibility study

and prepare a feasibility study

report. The feasibility study

report will form part of the

project proposal.

• Determine the requirements

of computer solution, identify

possible solutions and select the

appropriate solution.

• Select and apply appropriate

techniques and principles to

develop algorithms for the

solution to the problem.

• Implement the algorithms

to produce documented

and tested system using the

available and appropriate

existing software and hardware.

• Draw a schedule of activities

which will guide the candidates

in completing the project.

• Submit a project proposal

(1,000 words maximum) to the

training institution with a copy

to KASNEB. The feasibility study

report should be attached to the

project proposal.

Eleven percent (11%) of the total marks

will be awarded for the development of

a suitable project proposal.

2. ANALYSIS

2.1 Investigation

Once a candidate has prepared

a project proposal, he/she must

make a full investigation of the

user’s needs (a user may be a

person or organisation known to

the candidate or the candidate

may have a potential user in mind

like in the case of a game or an

expert system).

The exercise of designing a

questionnaire or preparing a

list of questions and holding

interviews should be regarded as

an important part of the project

work.

The following details are

expected from the investigation:

• Input data.

• Processes.

• Output information (reports

and analyses).

• Other requirements.

2.2 The analysis report

The analysis report should

include the following:

• Introduction.

• Investigation.

• Objectives of the new

system.

• Constraints.

• Limitations of the existing

system.

• Proposed solution.

Nineteen percent (19%) of the

total marks will be awarded for

the analysis of the proposed

system.

3. DESIGN

The design of a system is crucial in

project work because poor design will

mean that the project will not be success-

fully implemented. The following critical

elements should be included in the

system design:

3.1 Overall system design

A brief description of the input,

processing and the output that make

up the system.

3.2 Development of a conceptual

model

A conceptual data model of the new

system should be developed. This will

show entities, attributes and relation-

ships.

3.3 Input content, format and

validation

The design of database structure; tables

and their relationships, validation rules,

default values and primary keys.

3.4 Naming convention

Identification of a naming convention

and consistently applying it in naming

of the objects used in the candidate’s

information system.

3.5 Data validation

The method used for data validation

should be clearly stated. There must be

a checklist of facts to be recorded for each

data item.

3.6 Output

This involves the design of various reports

which are to be produced by the new

system.



3.7 The user interface

Samples of the user interface should be

part of the design.

3.8 Charts showing overall system

design

These include systems flowcharts, system

outline charts or other types of system

charts.

3.9 Module design and specification

Detailed design of programs, modules

or macros should be specified in this

section using, for example, pseudo codes

or structured charts.

3.10 Security and backup design

An inclusion on the system’s security and

backup should be part of the design.

3.11 Design of a test strategy

A test strategy should include:

• Logical testing.

• Functional testing.

• System testing.

• Recovery testing.

• User acceptance testing.

Thirty percent (30%) of the total marks

will be awarded for the design of the

proposed system.

4. SYSTEM CODING AND TESTING

4.1 Coding

Candidates will be expected to write well

documented programs using appropriate

programming languages.

4.2 Testing

Testing should include:

• Testing objectives.

• Designing a test plan.

• Steps in software testing.

• Drawing up a test plan.

• Selecting test for the test

plan.

• Presenting test results.

Ten percent (10%) of the total

marks will be awarded for the

system coding and testing.

5. THE PROJECT REPORT

The candidate will submit project

reports to KASNEB upon completion

of the project.

5.1 The project report should

include the following:

• Title page.

• Table of contents.

• Sections on:

– Analysis.

– Design.

– Testing.

– Systems maintenance

(technical) manual.

– User manual.

– An appraisal of the

project.

• Appendices showing for

example;

– Input documents.

– Annotated program

listings.

– Test runs, annotated

and cross-referenced

test plan.

Thirty percent (30%) of the total

marks will be awarded for the

project report.

5.2 Originality

• All candidates are cautioned against

plagiarism as it will lead to cancel-

lation of the affected candidate’s

project work.

• Each candidate is required to

include a one sentence declaration

of anti-plagiarism to be placed after

the title page and before the table

of contents in the project report.

The declaration should be dated and

duly signed by the candidate.

6. PROJECT TIMELINES

6.1 Candidates who wish to

undertake their project work

following the June examination

sitting will be expected to adhere

to the following timelines:

Submission of project proposal

30 September

Project execution 31 December

Submission of reports to KASNEB

2 January

Project presentation to KASNEB examiners

8 January to

21 January

6.2 Candidates who wish to

undertake their project work

following the December

examination sitting will be

expected to adhere to the

following timelines:

Submission of project proposal

31 March

Project execution 31 June

Submission of reports to KASNEB

1 July

Project presentation to KASNEB examiners

8 July to 21 July



I. APPEALS FOR REVIEW OF MARKING

(i) Students are ADVISED not to make the appeal decision in a rush

and to note that a candidate’s external circumstances that

could have affected his or her performance are not considered

during the review of marking.

(ii) All appeals should be on the designated form. The form is

available for download on the KASNEB website.

(iii) The appeal form should be received by KASNEB within fourteen

(14) days after the date of release of the examination results.

This date is indicated in the examination result notification.

Students paying through the banks or other agents are advised

to personally send the forms attaching copies of deposit slips to

KASNEB so as to be received within the stated deadline. Appeal

forms received after the stated deadline will not be considered.

(iv) The candidate’s name should NOT appear anywhere on the

form.

(v) A remarking fee shall be charged at Sh. 5,000 per paper

for diploma level examinations and Sh.7,500 per paper for

professional level examinations.

(vi) A refund of the remarking fee, less an administrative charge of

15% shall be made if, after the remarking, the student’s results

for a particular paper change from FAIL to PASS.

(vii) Feedback on remarking shall be provided to candidates within

a period of between two and three weeks after the expiry of

the deadline for receipt of appeals.

II. DEFERMENT OF EXAMINATIONS

Deferment of fees shall be allowed subject to the following

conditions:

(i) A formal application shall be made by the student for deferment

of examination fees to the subsequent sitting.

(ii) Deferment of fees is not automatic and shall only be allowed on

the basis of medical reasons, change of work station or similar

extraneous circumstances as approved by the Secretary and

Chief Executive.

(iii) All relevant evidence should be attached to the application

letter. Applications received without any evidence attached

SHALL NOT be considered.

(iv) A student shall be allowed to defer fees to the subsequent

sitting only once in any particular level or section. The full

amount of deferred fees not utilised in the subsequent sitting

shall be forfeited to KASNEB.

(v) An administrative charge equivalent to 15% of the applicable

examination fees shall be levied as a precondition for the

deferment of the examination fees.

(vi) An application for deferment together with the supporting

evidence must be received at least thirty (30) days before the

commencement date of the examination, except for medical

reasons.

III. CHANGE OF REGISTRATION FROM ONE QUALIFICATION TO ANOTHER FOR NEW

STUDENTS

Students who have applied and registered for a particular KASNEB

qualification and who thereafter wish to change to another

KASNEB qualification shall be allowed to do so without paying

the applicable student registration fees provided that the following

conditions are fulfilled:

(i) The application for the change is made before the date of the

late examination entry for the sitting immediately following

the date of registration. Such an application must state the

reasons for the change and include a request for cancellation

of the previous registration.

(ii) An administrative charge equivalent to 15% of the registration

fees earlier paid shall be levied at the time of application.

(ii) Examination fees paid for the previous qualification shall be

transferable to the new qualification, provided that all other

rules relating to examination fees shall apply.

(iv) An application for change of registration under the above

conditions shall only be allowed once for each student.

IV. ADHERENCE TO DEADLINES FOR PAYMENT OF REGISTRATION, EXAMINATION AND

OTHER FEES

(i) All students are required to strictly adhere to the set deadlines

for payment of fees including for registration, examination

entry, exemptions and registration renewal. Details on the

applicable fees and deadlines are available on the KASNEB

website.

(ii) No student shall be allowed to sit for examinations unless he or

she has paid all the applicable fees. Where in doubt, students

are advised to confirm with KASNEB about their status with

regard to registration and examination entry by latest thirty

(30) days before the date of commencement of examinations.

V. CERTIFICATION OF DOCUMENTS

(i) Students are required to ensure that all copies of academic

and professional transcripts, testimonials, identity cards or

passport documents and passport photos are duly certified

by an authorized person before they are submitted to KASNEB.

(ii) All such documents should be certified by the same person.

(iii) Additional information on certification is available at the back

of the registration and exemption forms and on the KASNEB

website.

VIII. REMINDER TO STUDENTS ON SOME POLICY REQUIREMENTS

EXAMINATION DATES

EXAMINATIONS NOTICE - NOVEMBER 2016 EXAMINATIONSStudents of KASNEB, parents, sponsors, guardians, training institutions and other stakeholders are hereby notified of the following important dates and information.

1. Examination dates for the November 2016 examinations are as follows:

(a) Accounting Technicians Diploma (ATD), Diploma in Information Communication Technology (DICT) and Diploma in Credit Management (DCM) Levels I, II and III

Monday, 21 November 2016 and Tuesday, 22 November 2016

(b) CPA, CS, CICT ,CIFA and CCP Parts I, II and III Monday, 21 November 2016, Tuesday 22 November 2016, Wednesday, 23 November 2016, Thursday, 24 November 2016 and Friday, 25 November 2016 (c) Foreign Accountancy Qualifications (FAQ) - Wednesday, 23 November 2016 and Thursday, 24 November 2016

(d) Foreign Secretaries Qualifications (FSQ) - Wednesday, 23 November 2016

(e) Kenya Institute of Supplies Management - (i) Associate in Procurement and Supply of Kenya (APS-K) - Levels I and II Monday, 21 November 2016, Tuesday 22 November 2016 and Wednesday, 23 November 2016(ii) Certified Procurement and Supply Professional of Kenya (CPSP-K) - Parts I and II Monday, 21 November 2016, Tuesday 22 November 2016, Wednesday, 23 November 2016, Thursday, 24 November 2016 and Friday, 25 November 2016

2. Closing dates The closing dates for late registration, normal examination entry and late examination entry for the November 2016 examinations are as shown below:

(a) Late registration - Monday, 15 August 2016(b) Normal examination entry - Monday, 15 August 2016(c) Late examination entry - Friday, 30 September 2016

3. Examination brochures and forms are obtainable on request, free of charge: (a) In Kenya:

(i) Either in person at the offices of KASNEB, or through the post.(ii) KASNEB Huduma Centre outlets(III) Any Kenya National Library Service (KNLS) branches countrywide.(iv) Training institutions offering KASNEB courses.

(b) Outside Kenya at the following offices in Eastern and Central Africa:(i) In Uganda at DMK Associates, Sabina Baiga House, Bombo Road, 2nd floor suite 05 - Kampala, Makerere University Business School (MUBS) - Nakawa,

Kampala International University - Kansanga, Busoga University - Iganga, and Bugema University, Kampala Campus - Bombo Road. (ii) In Rwanda at Kigali Institute of Management - Rimera, University of Rwanda, College of Business and Economics, Gikondo - Kigali, University of Kigali, Kacyiru

Campus and Kigali Independent University (ULK).(iii) In Cameroon at Maaron Business School, 10 Rue, Joffre, Akwa - Douala, IPC Douala and Fomic Business School, Buea, Cameroon. (v) In South Sudan, at the University of Juba and South Sudan Institute of Professional Studies.

(c) Forms can also be downloaded from the website; www.kasneb.or.ke

4. Method of payment of fees Attention of students is drawn to the “Guide to the November 2016 examinations” regarding secure methods of paying fees to KASNEB.

(a) In Kenya. Students are advised to pay through the KASNEB fee collection accounts in any branch of the following banks:(i) National Bank of Kenya Ltd. (NBK). - Account No.01001031572601.(ii) Equity bank Ltd. - Account No.0170299238025.(iii) Kenya Post Office Savings Bank (Postbank) - Account No.0744130009246.(iv) Co-operative Bank of Kenya Ltd. - Account No.01129128535900.

Students November also make payment in person at KASNEB offices in cash, by cheques/bankers cheques/drafts drawn in the name of KASNEB or through the post. However, students are advised that payment at KASNEB offices will soon be phased out and therefore they should utilise the available payment channels through the banks.

(b) Outside Kenya. Students are advised to pay the applicable fees in dollars at any branch of KCB in their countries to KASNEB KCB collection account number 1123096465, domiciled at Capital Hill Branch, Nairobi. Thereafter, students should submit their documents to KASNEB together with a copy of the bank deposit slip. Students are individually and personally responsible for ensuring that fees are paid to KASNEB. Consequently, students who pay fees through third parties should ensure that such parties are honest and reliable and will therefore remit the fees to KASNEB without delay. Bankers Cheques/Drafts should be drawn payable to KASNEB and Inter-State Money Orders should be payable at City Square Post Office - Nairobi. Examination entry/annual registration renewal forms and remittances which are sent by post should be posted at least one week before the closing date to ensure that they are received in time.

5. All students who sat for the May 2016 examinations should ENTER for the November 2016 examinations immediately upon confirmation of their May 2016 examination results.

6. All continuing students of KASNEB are required to update their annual registration renewal position by 1 July of each year. New students are required to note that the registration renewal fee is due on 1 July following the examinations sitting to which they are first eligible to enter.


INTRODUCTION

The revised examination syllabuses of KASNEB were

implemented with effect from 1 July 2015 and examined

from the November 2015 examination sitting. Under the

revised syllabuses, the structure of the examinations and

content of various papers were reviewed, which necessitated

a review of the exemption policy.

Under the revised exemption policy, exemptions will

continue to be granted on a paper by paper basis. However,

students are advised that the exemptions specified under

this policy are not automatic. For an exemption to be granted

in any one paper, the applicant must prove that he/she

attempted and passed an equivalent paper whose content

at least match that of the paper for which an exemption is

sought. This means that students will be granted exemptions

in those papers in which they demonstrate sufficient

coverage of course content in their respective qualifications.

For this purpose, an applicant may be required to submit

the university catalogue detailing the course content for a

specific paper under consideration.

Applicants for exemptions should complete the official

Application for Exemption Form (also available for download

on the KASNEB website: www.kasneb.or.ke) and attach

the required documents specified in the form, including

certified copies of academic and professional certificates

and transcripts. Students awaiting graduation should

attach certified copies of transcripts and a letter from the

university confirming that the student has completed the

undergraduate studies and is awaiting graduation.

Applications for exemptions should ideally be submitted

at the time of registration or before payment for the first

examination. Where, subsequent to registering with

KASNEB, a student obtains a qualification for which he/

she is eligible to seek exemption(s), the student may still

apply for exemptions provided that such exemptions relate

to subsequent section(s) for which the student has not

attempted any of the papers.

Students are reminded that an exemption granted in a

particular paper will be forfeited if one subsequently enters

to sit the paper. Similarly, a student should not apply for

exemption in a particular paper if he/she has already sat

the paper and failed.

This policy addresses exemptions for holders of the following

qualifications:

(1) KASNEB professional, diploma and technician

qualifications.

(2) Undergraduate and postgraduate degrees from

recognised universities based in Kenya or outside Kenya.

(3) Diploma qualifications offered by the Kenya National

Examinations Council (KNEC), Kenya Institute of

Management (KIM) and the Kenya School of Law (KSL).

(4) ACCA and ICSA qualifications.

Applications for exemptions will only be considered if the

student has completed the course for which he/she seeks

exemption, including the project or thesis where applicable.

The exemptions under each of the above qualifications are

explained below:

A. EXEMPTIONS FOR KASNEB GRADUATES WISHING TO PURSUE OTHER KASNEB QUALIFICATIONS

Holders of KASNEB technician, diploma and professional

qualifications who wish to pursue other professional

qualifications offered by KASNEB will be eligible for

exemption in the common or equivalent papers undertaken

in their current qualification(s).

Holders of the KASNEB diploma qualifications will be

eligible to a maximum of six (6) exemptions in Part I of the

professional qualifications depending on the professional

qualification under consideration.

Holders of the KASNEB technician qualifications will be

eligible to a maximum of three (3) exemptions in Part I of

the professional qualifications.

REVISED KASNEB

EXEMPTION POLICY - 2016


The detailed list of exemptions for KASNEB graduates is

provided under Schedule I of this policy.

B. EXEMPTIONS FOR HOLDERS OF VARIOUS UNIVERSITY DEGREES

Exemptions will be granted to holders of undergraduate and

postgraduate degrees from recognised universities based

in Kenya or outside Kenya who have sat and passed units

considered to be equivalent to those under the respective

professional qualifications of KASNEB.

For certain foreign universities, students may be required

to obtain a written confirmation on recognition of their

universities in Kenya from the Commission for University

Education (CUE) in Kenya.

In granting exemptions, priority will be accorded to the

units covered in undergraduate degree programmes and

in particular, the areas of specialisation (also referred to as

majors/concentrations/options). Where a student has pursued

a postgraduate degree programme, consideration will also be

given as to whether the postgraduate degree programme is

a progression of the specialiasation at undergraduate degree

level.

University graduates whose degree certificates and

transcripts are in a language other than English will be

required to include certified copies of the degree certificates

and transcripts together with a set of these documents

translated into English by a qualified translator. The translated

documents should bear the official rubber stamp of the

translator indicating the name, telephone number and

physical address.

University graduates are further required to note that:

(1) Those who have only attempted introductory papers

in their undergraduate or postgraduate degree

programmes, such as Introduction to Financial

Accounting or Introduction to Economics will not

qualify for exemptions in the respective papers in the

professional examinations of KASNEB. To qualify for

an exemption in the Economics paper, for instance, a

candidate must demonstrate that he has sufficiently

covered micro and macro-economics, ideally as two

distinct papers.

(2) University graduates will be eligible for exemptions in Part I

of the professional examinations based on equivalent units

undertaken at undergraduate or postgraduate degrees, except

that for the under mentioned papers, exemptions will only be

considered based on the conditions specified below:

Paper Examination Qualifying degrees

Management Accounting

CPA • Holders of undergraduate business degrees with specialisation in accounting

• Holders of undergraduate business degrees with specialisation in either finance/micro finance must demonstrate that they undertook an equivalent unit before consideration for exemption in the paper

Public Finance and Taxation

CPA/CS/CIFA/CCP

Holders of undergraduate business degrees with specialisation in either accounting/finance/micro finance. No exemption will be granted in the paper if a student pursued a unit with only a public finance component

Financial Institutions and Markets

CIFA • Holders of undergraduate business degrees with specialisation in either finance/micro finance/financial engineering

• Holders of undergraduate business degrees with specialisation in accounting must prove that they undertook an equivalent unit before consideration for exemption in the paper

Credit Management

CCP Holders of business related degrees with specialisation in credit management

Note:

• No exemptions will be granted in the Computer Applications

– Practical paper and Operating Systems – Practical paper in

CICT Part I.

• Graduates of universities based in non-commonwealth

member countries will not be exempted in the Commercial

Law paper in Section 1 of the respective professional examina-

tions.

(3) No exemptions shall be granted in Part II of the professional

qualifications unless the paper(s) for which the exemptions

are sought were covered at undergraduate degree level as

options/concentrations/majors and not just as units. The

exemptions in Part II of the professional qualifications will

however be limited to the following papers subject to the

conditions specified below:


Paper Examination Qualifying degrees

Company Law CPA/CS/CCP • Holders of Bachelor of Laws (LLB) degree from universities based within the East African region

• Holders of LLB degrees from outside the EA region and have been admitted as advocates of the High Court of Kenya

Financial Management

CPA/CS/CCP Holders of undergraduate business degrees with specialisation in either accounting/finance/ economics and finance (issued as one option)/financial engineering

Management Information Systems

CPA/CS/CCP Holders of undergraduate degrees in computer science/business information technology degree or other degrees with a minor in Information Technology (minor must be indicated on transcripts and degree certificate)

Quantitative Analysis

CPA/CIFA/CCP Holders of undergraduate degrees with specialisation in either:• Management science or operations

research• Financial economics or economics and

statistics (issued as one option)• Actuarial science (JKUAT) • Mathematics• Financial engineering (JKUAT)

Principles and Practice of Management

CS Holders of business related degrees with specialisations in management, human resource management or marketing management options

Database Systems CICT Holders of Bachelor of Computer Science/Business Information Technology degree

Systems Analysis and Design

CICT Holders of Bachelor of Computer Science/Business Information Technology degree.

Corporate Finance CIFA Holders of undergraduate business degrees with specialisation in either accounting/finance/economics and finance (issued as one option)/financial engineering

Marketing and Public Relations

CCP Holders of Bachelor of Commerce/Business Administration (marketing/public relations option) degrees

(4) No exemptions shall be granted in Part III of the

professional examinations except to KASNEB graduates.

The detailed list of exemptions for various categories of

university degrees is provided under Schedule II of this

policy. This list will be regularly updated as applications for

exemptions continue to be received.

C. EXEMPTIONS FOR HOLDERS OF DIPLOMA QUALIFICATIONS OFFERED BY THE KENYA NATIONAL EXAMINATIONS COUNCIL (KNEC), KENYA INSTITUTE OF MANAGEMENT (KIM) AND KENYA SCHOOL OF LAW (KSL)

Holders of diploma qualifications offered by the Kenya

National Examinations Council (KNEC), Kenya Institute of

Management (KIM) and Kenya School of Law (KSL) will be

eligible for exemptions in certain papers under Part I of the

professional qualifications. The exemptions to be granted

will be based on the area of specialisation in the respective

diploma qualification.

The list of exemptions for the diploma qualifications offered

by KNEC, KIM and KSL is provided under Schedule III of this

policy. This list will be regularly updated as applications for

exemptions continue to be received.

D. EXEMPTIONS FOR HOLDERS OF THE ASSOCIATION OF CERTIFIED CHARTERED ACCOUNTANTS (ACCA-UK) AND INSTITUTE OF COMPANY SECRETARIES AND ADMINISTRATORS (ICSA-UK) QUALIFICATIONS

Holders of the ACCA and ICSA qualifications wishing to

pursue KASNEB professional qualifications will be eligible

for exemption in certain papers undertaken in the respective

qualification.

The list of exemptions for holders of the ACCA and ICSA

qualifications is provided under Schedule IV of this policy.

Exemptions for holders of other foreign qualifications will be

considered as applications are received.


CPA graduatesExemptions in CS • Commercial Law

• Business Communication

• Economics

• Principles of Accounting

• Public Finance and Taxation

• Company Law

• Financial Management

• Principles and Practice of Management

• Management Information Systems

Exemptions in CICT • Introduction to Computing

• Entrepreneurship and Communication


• Strategy, Governance and Ethics

Exemptions in CIFA • Financial Accounting

• Financial Mathematics


• Economics


• Corporate Finance

• Financial Statements Analysis

• Quantitative Analysis


Exemptions in CCP • Commercial Law


• Economics



• Company Law





CS graduates Exemptions in CPA • Financial Accounting

• Commercial Law


• Economics


• Company Law










• Economics


• Regulation of Financial Markets



Exemptions in CCP • Commercial Law


• Economics



• Company Law




CICT graduatesExemptions in CPA • Financial Accounting




SCHEDULE I

EXEMPTIONS FOR KASNEB PROFESSIONAL, DIPLOMA AND TECHNICIAN EXAMINATIONS GRADUATES

I. EXEMPTIONS FOR KASNEB PROFESSIONAL EXAMINATIONS GRADUATES


Exemptions in CS • Business Communication







Exemptions in CCP • Entrepreneurship and Communication




CIFA graduates Exemptions in CPA • Financial Accounting


• Economics






• Advanced Financial Management

Exemptions in CS • Business Communication

• Economics






• Financial Markets Law






• Economics







CCP graduates Exemptions in CPA • Financial Accounting

• Commercial Law


• Economics


• Company Law





Exemptions in CS • Commercial Law

• Business Communication

• Economics



• Company Law








SCHEDULE I (continued)

EXEMPTIONS FOR KASNEB PROFESSIONAL, DIPLOMA AND TECHNICIAN EXAMINATIONS GRADUATES




• Economics





II. EXEMPTIONS FOR KASNEB DIPLOMA EXAMINATIONS GRADUATES

Accounting Technicians Diploma (ATD)Exemptions in CPA • Financial Accounting

• Commercial Law• Entrepreneurship and Communication• Economics• Management Accounting• Public Finance and Taxation

Exemptions in CS • Commercial Law• Business Communication• Economics• Principles of Accounting• Public Finance and Taxation

Exemptions in CICT • Introduction to Computing• Entrepreneurship and Communication• Principles of Accounting

Exemptions in CIFA • Financial Accounting• Financial Mathematics• Entrepreneurship and Communication• Economics• Public Finance and Taxation

Exemptions in CCP • Commercial Law• Entrepreneurship and Communication• Economics• Principles of Accounting• Public Finance and Taxation

Diploma in Information Communication Technology (DICT)Exemptions in CICT • Introduction to Computing

• Computer Applications Practical• Entrepreneurship and Communication• Principles of Accounting• Computer Support and Maintenance

Exemptions in CPA • Entrepreneurship and Communication

Exemptions in CS • Business Communication• Principles of Accounting

Exemptions in CIFA • Entrepreneurship and Communication

Exemptions in CCP • Entrepreneurship and Communication• Principles of Accounting

Diploma in Credit Management (DCM)Exemptions in CCP • Credit Management

• Commercial Law• Entrepreneurship and Communication• Principles of Accounting• Public Finance and Taxation

Exemptions in CPA • Commercial Law• Entrepreneurship and Communication• Public Finance and Taxation

Exemptions in CS • Commercial Law• Business Communication• Principles of Accounting• Public Finance and Taxation

Exemptions in CICT • Entrepreneurship and Communication• Principles of Accounting

Exemptions in CIFA • Financial Mathematics• Entrepreneurship and Communication• Public Finance and Taxation

III. EXEMPTIONS FOR KASNEB TECHNICIAN EXAMINATIONS GRADUATES

Accounting Technicians Certificate (ATC)

Exemptions in CPA• Financial Accounting• Commercial Law• Entrepreneurship and Communication

Exemptions in CS• Commercial Law• Principles of Accounting

Exemptions in CICT• Entrepreneurship and Communication• Principles of Accounting

Exemptions in CIFA• Financial Accounting• Entrepreneurship and Communication

Exemptions in CCP• Commercial Law• Entrepreneurship and Communication• Principles of Accounting

Information Communication Technology Technicians (ICTT)Exemptions in CICT • Introduction to Computing

• Computer Applications - Practical• Entrepreneurship and Communication• Computer Support and Maintenance

Exemptions in CPA • Entrepreneurship and Communication

Exemptions in CS • No exemptions

Exemptions in CIFA • Entrepreneurship and Communication


Credit Management Technicians (CMT)Exemptions in CCP • Credit Management

• Commercial Law• Entrepreneurship and Communication• Economics

SCHEDULE I (continued) EXEMPTIONS FOR KASNEB PROFESSIONAL, DIPLOMA AND TECHNICIAN EXAMINATIONS GRADUATES


Exemptions in CPA • Commercial Law• Entrepreneurship and Communication• Economics

Exemptions in CS • Commercial Law• Economics

Exemptions in CICT • Entrepreneurship and Communication

Exemptions in CIFA • Entrepreneurship and Communication• Economics

SCHEDULE I (continued) EXEMPTIONS FOR KASNEB PROFESSIONAL, DIPLOMA AND TECHNICIAN EXAMINATIONS GRADUATES

Investment and Securities Technicians (IST)Exemptions in CIFA • Entrepreneurship and Communication

• Economics• Financial Institutions and Markets

Exemptions in CPA • Entrepreneurship and Communication• Economics

Exemptions in CS • Economics

Exemptions in CICT • Entrepreneurship and Communication

Exemptions in CCP • Commercial Law• Entrepreneurship and Communication• Principles of Accounting

SCHEDULE II

EXEMPTIONS FOR VARIOUS TYPES OF DEGREESQUALIFICATION

EXEMPTIONS IN:

CPA CS CICT CIFA CCP

Bachelor of Commerce/Business Management (Accounting option)

Section 1:• Financial Accounting• Commercial Law• Entrepreneurship and

CommunicationSection 2:• Economics• Management AccountingSection 3:• Financial ManagementNb: (i) Exemptions in the Public

Finance and Taxation paper will only be considered if an applicant has covered an equivalent paper or a paper with a bias in taxation practice.

(ii) Graduates with a minor in Information Technology, as indicated on the degree certificate, will also be exempted in the Management Information Systems paper.

Section 1:• Organisational Behaviour• Commercial Law• Business CommunicationSection 2:• Economics• Principles of AccountingSection 3:• Financial ManagementNb: (i) Exemptions in the

Public Finance and Taxation paper will only be considered if an applicant has covered an equivalent paper or a paper with a bias in taxation practice.


Section 1:• Entrepreneurship and

CommunicationSection 2:• Principles of Accounting

Graduates with a minor in Information Technology, as indicated on the degree certificate, will also be exempted in the following papers:• Introduction to

Computing• Computer Support and

Maintenance• Systems Analysis and

Design

Section 1:• Financial Accounting• Financial Mathematics• Entrepreneurship and

CommunicationSection 2:• Economics• Financial Institutions

and MarketsSection 3:Corporate FinanceNb: Exemptions in the Public Finance and Taxation paper will only be considered if an applicant has covered an equivalent paper or a paper with a bias in taxation practice.

Section 1:• Commercial Law• Entrepreneurship and

CommunicationSection 2:• Economics• Principles of AccountingSection 3:• Financial ManagementNb: (i) Exemptions in the

Public Finance and Taxation paper will only be considered if an applicant has covered an equivalent paper or a paper with a bias in taxation practice.

(ii) Graduates with a minor in Information Technology, as indicated on the degree certificate, will also be exempted in the Management Information Systems paper


QUALIFICATIONEXEMPTIONS IN:


Bachelor of Commerce/ Business Management (Finance Option and Micro-Finance Option)


CommunicationSection 2:• EconomicsSection 3:• Financial ManagementNb: (i) Exemptions in the

Management Accounting paper will only be considered if an applicant has covered an equivalent paper

(ii) Exemptions in the Public Finance and Taxation paper will only be considered if an applicant has covered an equivalent paper or a paper with a bias in taxation.

(iii) Graduates with a minor in Information Technology, as indicated on the degree certificate, will also be exempted in the Management Information Systems paper.

Section 1:• Organisational Behaviour• Commercial Law• Business

CommunicationSection 2:• Economics • Principles of AccountingSection 3:• Financial ManagementNb: (i) Exemptions in the

Public Finance and Taxation paper will only be considered if an applicant has covered an equivalent paper or a paper with a bias in taxation.


Section 1:Entrepreneurship and CommunicationSection 2:Principles of Accounting

Graduates with a minor in Information Technology, as indicated on the degree certificate, will also be exempted in the following papers:• Introduction to

Computing• Computer Support and

Maintenance• Systems Analysis and

Design

Section 1:Financial AccountingFinancial MathematicsEntrepreneurship and CommunicationSection 2:EconomicsFinancial Institutions and MarketsSection 3:Corporate Finance

Nb: Exemptions in the Public Finance and Taxation paper will only be considered if an applicant has covered an equivalent paper or a paper with a bias in taxation

Section 1:Commercial LawEntrepreneurship and CommunicationSection 2:EconomicsPrinciples of AccountingSection 3:Financial ManagementNb: Exemptions in the Public Finance and Taxation paper will only be considered if an applicant has covered an equivalent paper or a paper with a bias in taxation.Graduates with a minor in Information Technology, as indicated on the degree certificate, will also be exempted in the ManagementInformation Systems paper

Bachelor of Economics and Finance


CommunicationSection 2:• EconomicsSection 3:• Financial Management

Section 1:• Commercial Law• Business CommunicationSection 2:• Economics• Principles of AccountingSection 3:• Financial Management

Section 1:Entrepreneurship and CommunicationSection 2:• Principles of Accounting


CommunicationSection 2:• EconomicsSection 3:• Corporate Finance


CommunicationSection 2:• Economics• Principles of AccountingSection 3:• Financial Management

Bachelor of Financial Economics


CommunicationSection 2:• EconomicsSection 4:• Quantitative Analysis

Section 1:• Commercial Law• Business CommunicationSection 2:• Economics• Principles of Accounting






CommunicationSection 2:• Economics• Principles of AccountingSection 4:• Quantitative Analysis

Bachelor of Science (International Business Administration) – Finance Concentration/Major


CommunicationSection 2:• EconomicsSection 3:• Financial Management

Section 1:• Organisational Behaviour• Commercial Law• Business CommunicationSection 2:• Economics• Principles of AccountingSection 3:• Financial Management


Communication



and MarketsSection 3:• Corporate Finance


CommunicationSection 2:• Economics• Principles of AccountingSection 3:• Financial Management

SCHEDULE II (continued)




Bachelor of Arts (Economics)

Section 1:• Financial Accounting• Entrepreneurship and

CommunicationSection 2:• Economics

Section 1:• Organisational Behaviour• Business CommunicationSection 2:• Economics• Principles of Accounting






CommunicationSection 2:• Economics• Principles of Accounting

Bachelor of Science in Economics and Statistics


CommunicationSection 2:• Economics• Quantitative Analysis

Section 1:• Business CommunicationSection 2:• Economics• Principles of Accounting






CommunicationSection 2:• Economics• Principles of AccountingSection 4:Quantitative Analysis

Bachelor of Arts (General)


Communication• Commercial Law (only in

selected cases where paper covered)

Section 1:• Organisational Behaviour• Business Communication• Commercial Law (only

in selected cases where paper covered)


Communication


Communication


Communication• Commercial Law (only

in selected cases where paper covered)

Bachelor of Education (Arts)

Section 1:Financial AccountingCommercial LawEntrepreneurship and CommunicationSection 2:Economics

Section 1:Organisational BehaviourCommercial LawBusiness CommunicationSection 2:EconomicsPrinciples of Accounting


Section 1:Financial AccountingFinancial MathematicsEntrepreneurship and CommunicationSection 2:Economics

Section 1:Commercial LawEntrepreneurship and CommunicationSection 2:EconomicsPrinciples of Accounting

Bachelor of Commerce (Actuarial Science)






Bachelor of Science (Actuarial Science) - JKUAT

Section 1:Financial AccountingEntrepreneurship and CommunicationSection 2:EconomicsSection 4:Quantitative Analysis

Section 1:Business CommunicationSection 2:EconomicsPrinciples of Accounting


Section 1:Financial AccountingFinancial MathematicsEntrepreneurship and CommunicationSection 2:EconomicsSection 4:Quantitative Analysis

Section 1:Entrepreneurship and CommunicationSection 2:EconomicsPrinciples of AccountingSection 4:Quantitative Analysis

Bachelor of Science (Management Science Option)

Section 1:Financial AccountingCommercial LawEntrepreneurship and CommunicationSection 2:EconomicsSection 4:Quantitative Analysis



Section 1:Financial AccountingFinancial MathematicsEntrepreneurship and CommunicationSection 2:EconomicsSection 4:Quantitative Analysis

Section 1:Commercial LawEntrepreneurship and CommunicationSection 2:EconomicsPrinciples of AccountingSection 4:Quantitative Analysis





Bachelor of Purchasing and Supply Chain Management

Section 1:Commercial LawEntrepreneurship and CommunicationSection 2:Economics* Financial Accounting – certain cases only upon further review of application

Section 1:Organisational BehaviourCommercial LawBusiness CommunicationSection 2:Economics* Principles of Accounting – certain cases only upon further review of application

Section 1:Entrepreneurship and Communication* Principles of Accounting – certain cases only upon further review of application

Section 1:Entrepreneurship and CommunicationSection 2:Economics* Financial Mathematics and Principles of Accounting – certain cases only upon further review of application

Section 1:Commercial LawEntrepreneurship and CommunicationSection 2:Economics*Principles of Accounting – certain cases only upon further review of application

Bachelor of Business Administration (Management Option) and

Bachelor of Business Management (International Business Management – MKU)


Section 1:Organisational BehaviourCommercial LawBusiness CommunicationSection 2:EconomicsPrinciples of AccountingSection 3:Principles and Practice of Management




Bachelor of Commerce(Marketing Option)



Section 1:• Organisational Behaviour• Commercial Law• Business CommunicationSection 2:• Economics• Principles of AccountingSection 3:• Principles and Practice of

Management






CommunicationSection 2:• Economics• Principles of AccountingSection 3:• Marketing and Public

Relations

Bachelor of Business Information Technology


CommunicationSection 2:• EconomicsSection 4• Management Information

Systems

Section 1:• Organisational Behaviour• Commercial Law• Business CommunicationSection 2:• Economics• Principles of AccountingSection 4:• Management

Information Systems

Section 1:• Introduction to

Computing• Entrepreneurship and

Communication• Computer Support and

Maintenance• Principles of AccountingSection 3:• Database Systems• Systems Analysis and

Design

Section 1• Financial Accounting• Financial Mathematics• Entrepreneurship and


Section 1• Commercial Law• Entrepreneurship and

CommunicationSection 2• Economics• Principles of AccountingSection 4:• Management Information

Systems

Bachelor of Science in Financial Engineering(JKUAT)


CommunicationSection 2:• EconomicsSection 3:• Financial ManagementSection 4• Quantitative Analysis


Communication• Commercial LawSection 2:• Economics• Principles of AccountingSection 3:• Financial Management



Section 1• Financial Accounting• Financial Mathematics• Entrepreneurship and


and MarketsSection 3:• Corporate FinanceSection 4• Quantitative Analysis

Section 1• Entrepreneurship and

Communication• Commercial LawSection 2• Economics• Principles of AccountingSection 3:• Financial ManagementSection 4• Quantitative Analysis





Bachelor of Science in Mathematics and Computer Science


CommunicationSection 4:• Management Information

Systems• Quantitative Analysis

Section 1:• Business CommunicationSection 4:• Management

Information Systems



Communication• Computer Support and

Maintenance• Section 3:• Database Systems• Systems Analysis and

Design


Communication• Financial MathematicsSection 4:• Quantitative Analysis


CommunicationSection 4:• Management Information

Systems• Quantitative Analysis

Bachelor of Science in Mathematics


CommunicationSection 4:• Quantitative Analysis

Section 1:• Business Communication


Communication


Communication• Financial MathematicsSection 4:• Quantitative Analysis


CommunicationSection 4:• Quantitative Analysis

Bachelor of Laws (LLB)


CommunicationSection 3:Company LawNb:(i) Advocates of the High Court

of Kenya, or those who demonstrate sufficient coverage of Financial Accounting at degree level, will also be considered for exemption in the Financial Accounting paper.

(ii) Applicants who have undertaken papers in micro and macro economics at degree level will also be considered for exemption in the Economics paper.

Section 1:• Organisational Behaviour• Commercial Law• Business CommunicationSection 3:• Company LawNb:(i) Advocates of the

High Court of Kenya, or those who demonstrate sufficient coverage of Financial Accounting at degree level, will also be considered for exemption in the Principles of Accounting paper.



CommunicationNb:Advocates of the High Court of Kenya, or those who demonstrate sufficient coverage of Financial Accounting at degree level, will also be considered for exemption in the Principles of Accounting paper.


CommunicationNb:(i) Advocates of the

High Court of Kenya, or those who demonstrate sufficient coverage of Financial Accounting at degree level, will also be considered for exemption in the Financial Accounting paper.

(ii) (ii) Applicants who have undertaken papers in micro and macro economics at degree level will also be considered for exemption in the Economics paper.

Section 1:Commercial LawEntrepreneurship and CommunicationSection 2:EconomicsSection 3:Company LawNb:(i) Advocates of the High

Court of Kenya, or those who demonstrate sufficient coverage of Financial Accounting at degree level, will also be considered for exemption in the Principles of Accounting paper.


Nb: Additional degrees will be incorporated as applications continue to be received.



SCHEDULE III

EXEMPTIONS FOR HOLDERS OF DIPLOMA QUALIFICATIONS OFFERED BY KENYA NATIONAL EXAMINATIONS COUNCIL (KNEC), KENYA INSTITUTE OF MANAGEMENT (KIM) AND KENYA SCHOOL OF LAW (KSL)



Diploma in AccountancyandDiploma in Banking and Finance (KNEC)


Communication

Section 1:• Commercial Law• Business

CommunicationSection 2• Principles of

Accounting


CommunicationSection 2:• Principles of

Accounting


CommunicationNb: Consideration may be given for exemption in the Financial Mathematics paper where applicant has attempted an equivalent paper.



Accounting

Diploma in Business Administration Diploma in Management – Purchasing and Supplies

Diploma in Human Resources Management

(KIM)


Communication Nb: Exemption in Financial Accounting may be considered where the candidate has passed an introductory and subsequent paper in Accounting, such as Finance and Cost Accounting I and II.

Section 1:• Commercial Law• Business

Communication Nb:• Exemption in

Organisational Behaviour may be considered where candidate has passed an equivalent paper.

• Alternatively, exemption in Principles of Accounting may be considered where the candidate has passed an introductory and subsequent paper in Accounting, such as Finance and Cost Accounting I and II.

• (maximum number of exemptions: 3 papers)


CommunicationNb:Exemption in Principles of Accounting may be considered where the candidate has passed an introductory and subsequent paper in Accounting, such as Finance and Cost Accounting I and II.


CommunicationNb: Exemption in Financial Accounting may be considered where the candidate has passed an introductory and subsequent paper in Accounting, such as Finance and Cost Accounting I and II.


CommunicationNb: Exemption in Principles of Accounting may be considered where the candidate has passed an introductory and subsequent paper in Accounting, such as Finance and Cost Accounting I and II.

Diploma in Law(KSL)

Section 1• Commercial Law




SCHEDULE IV

EXEMPTIONS FOR ACCA (UK) AND ICSA (UK) HOLDERS



ACCA (UK)Section 1:• Financial Accounting• Commercial Law• Entrepreneurship and

CommunicationSection 2:• Management Accounting

(where an equivalent paper is passed)

Section 3:• Financial Management• Financial ReportingSection 4:• Auditing and Assurance

(where an equivalent paper is passed)


Section 1:• Commercial Law• Business CommunicationSection 2:• Principles of AccountingSection 3:• Financial Management• Principles and Practice of

Management



Accounting


CommunicationSection 3:• Corporate FinanceSection 4:• Financial Statements

Analysis• Quantitative Analysis



AccountingSection 3:• Financial

ManagementSection 4:• Quantitative Analysis

ICSA (UK) Section 1:• Financial Accounting• Commercial Law• Entrepreneurship and

CommunicationSection 2:• EconomicsSection 3:• Financial ManagementSection 4:• Management

Information System• Quantitative AnalysisSection 5:• Strategy, Governance and

Ethics

Section 1:• Organisational Behaviour• Commercial Law• Business CommunicationSection 2:• Economics• Principles of AccountingSection 3:• Financial Management• Principles and Practice of

ManagementSection 4:• Corporate Secretarial Practice• Management Information Systems• Law and Procedure of MeetingsSection 5:• Human Resource Management• Governance and EthicsSection 6:• Strategic Management




AccountingSection 5:• Strategy, Governance

and Ethics


CommunicationSection 2:• EconomicsSection 3:• Corporate FinanceSection 4:• Quantitative AnalysisSection 5:• Strategy, Governance

and Ethics


CommunicationSection 2:• Economics• Principles of

AccountingSection 3:• Financial

ManagementSection 4:• Management

Information System• Quantitative AnalysisSection 5:• Strategy, Governance

and Ethics


Kinyambu

PICT RIAL

CSR

KCA University Western Career Fair 2016 organised by KCA University on Friday, 29 April 2016 at Christ is the Answer Ministries (CITAM), Kisumu

5th Rift Valley Technical Training Institute (RVTTI) International Conference from Thursday, 26 May 2016 to Saturday, 28 May 2016

The 6th Annual High Schools Technical Subjects Exhibition and Higher Institutions Career Fair in Nakuru High School on Friday, 17 June 2016

Donation of blankets and mattresses to Kaimosi Special School for the mentally handicapped on Saturday, 11 June 2016 in Tiriki, Vihiga


Kinyambu

KNLS

Isiolo

Koru Awendo

Lusumu, Kakamega Kimilili

Kinyambu,KibweziKithasyu,Kibwezi

Donation of reading materials and branded book shelves to ten Kenya National Library Services (KNLS) branches from Monday, 20 June 2016 to Friday, 24 June 2016

Kapsabet


PICTORIALPRIZE AWARDSPrize Award Ceremony for the May 2015 Examination sitting held on Friday, 8 April 2016 at the Hilton Hotel, Nairobi


PRIZE AWARDS

Cameroon stakeholders forum organised by Cameroon Association of KASNEB Students (CAKS) in Douala, Cameroon on Saturday, 28 May 2016. Examination certificates were issued during the forum.


With Kenya being an investment destination, ICIFA’s mission is to develop a talent pipeline for Investment & Financial Analysts in developing economies within the Sub-Saharan Africa.

Being an ICIFA member provides an opportunity for networking, gaining more knowledge in financial markets, professional growth through trainings and many more.

ICIFA as a professional body is now recognised under the Investment and Financial Analysts Act of 2015 ( No. 13 of 2015) and is dedicated to regulating professionals in financial markets in an effort to protect investors wealth.

We invite eligible members to join our membership under the Full Membership category. Membership is open to all CIFA graduates.

Registration fee is Kshs 6,000.

Yearly subscription is Kshs. 6,000.

Affiliate member of ACIIA and APSEA

INSTITUTE OF CERTIFIED INVESTMENT AND FINANCIAL ANALYSTS

P.O. Box 48250-00100 NAIROBIKASNEB TOWERS, Hospital Road Upperhill, Nairobi Kenya.

Mobile: 0726498698 Email: [email protected] Website: www.icifa.co.ke

THE ROLE OF THE YOUTH IN THE

PROMOTION OF THE NATIONAL VALUES

AND PRINCIPLES OF GOVERNANCE

Usiseme Kijana Tu! Sema Kijana Mwadilifu!!!

•They will ensure full participation youth in the socio-economic and political processes in our country.•The will ensure different ethnic and social groups live harmoniously.•Conflicts will be resolved peacefully and effectively.•They will encourage socially acceptable behaviors within the youth.•National Values will enhance access to social justice and respect for the rule of law.

5.0 What strategies can the youth use to promote National Values?

•Embrace, uphold and disseminate the National values in the Constitution of Kenya (2010).•Monitor and evaluate implementation of National Values by all state and public officers•Speak out against those who fail to uphold national values.•Commend and emulate those who practice the National values.•Conduct and participate in trainings and sensitizations on national values.•Mainstream national values into the creative arts through songs, drama, poems and dances.

•Refuse to condone or participate in actions that undermine or violate national values.•Recognize and respect national symbols, national heritage and national days. •Organize and participate in sporting activi-ties on the promotion of National Values.

the power of youth4 H...

Youth participating in sports

CONTACTS:Ministry of Interior and Coordination of National

GovernmentDirectorate of National Cohesion and National Values

Extelcoms House, 9th & 10th FloorsHaile Selassie Avenue

P.O BOX 30510 – 00100 NAIROBITELEPHONE: 020 2224029

EXT. 200FACEBOOK: cohesion.go.ke

TWITTER: @CohesionKe















EXT. 200FACEBOOK: cohesion.go.keTWITTER: @CohesionKe
















Youths have the capacity to utilise their skills, energy and vibrancy to transform the socio-economic environment for a value driven society.Youths have the capacity to harness their potential in business for socioeconomic, envi-ronmental development and sustainable peace.

Youths are dynamic in their thinking and can thus generate solutions to many societal problems arising from failure to embrace national values.They have the capacity to influence leaders and peers in the process of promoting national values in society.

3.0 What is the role of the youth in the promotion of the National Values and Principles of Governance?

Take advantage of available education and training opportunities in National Values and Principles of governance.Sustain peaceful co-existence and national unity, through respect for human dignity, patrio-tism and loyalty to the country.

Embrace, uphold, practice and disseminate national values as stipulated in Article 10 (2) of the Constitution of Kenya, 2010. Respect each others’ culture and engage in activities that promote coexistence amongst different ethnic groups.Disseminate the provisions of the Constitution on issues related to National Values and Princi-ples of Governance. Exploit the opportunities that are provided for in the Constitution of Kenya, 2010 that are geared towards the promotion of National Values.Uphold integrity and accountability in positions entrusted to them.Observe the rule of law and advocate for social justice.Refuse to follow any agenda that are driven by selfish interests rather, be guided by National Values.Initiate and participate in campaigns that preserve the environment for sustainable development.

4.0 How will National Values benefit the youth?

They will have fair access to opportunities.

They will instill a sense of social responsibility;

They will enhance youths interaction with family and the community hence builds a unified nation.

They will define youths identity as a Kenyan.

They will ensure protection of human rights and responsibility.

1.0 INTRODUCTION

The National Values and Principles of Gover-nance in Article 10 of the Constitution are the fundamental beliefs of our nation, guiding the choices, actions, and behaviour of all Kenyans. They exert influence on the way the citizens relate with each other and how communities engage with others.

The National Values and Principles of Gover-nance are: patriotism, national unity, sharing and devolution of power, the rule of law, democracy and participation of the people; human dignity, equity, social justice, inclusiveness, equality, human rights, non-discrimination and protec-tion of the marginalized; good governance, integrity, transparency and accountability; and sustainable development.

Who is a youth?

A youth is a person between the ages of 18 and 35 years as defined by the Constitution of Kenya (2010). Youths account for 38% of the population and constitute 60% of the total labour force according to the National Council for Popula-tion and Development (NCPD) report, 2013.

2.0 Why Engage the Youth In the Promotion of National Values?

The youth are the largest and the most active age group in the country. Young people have the potential to provide a creative perspective in embracing National Values and Principles of Governance.

THEYOUTHP O W E R









THE ROLE OF THE YOUTH IN THE PROMOTION OF THE NATIONAL VALUES AND PRINCIPLES OF GOVERNANCE

Ministry of Interior and Coordination of National GovernmentDirectorate of National Cohesion and National Values


TECHNICIAN EXAMINATIONS

ACCOUNTING TECHNICIANS

CERTIFICATE (ATC) EXAMINATION

ATC - LEVEL I

INTRODUCTION TO FINANCIAL

ACCOUNTING

ATC/151735

AUGUSTINE ISAAC OLAHO

Donor: KASNEB

INTRODUCTION TO LAW

(COMMON PAPER)

ATC/166706

PERIS JEPKOECH SEREM

Donor: KASNEB

PRINCIPLES OF MANAGEMENT

(COMMON PAPER)

ATC/166543

DOMINIC KYALO YAKI

Donor: KASNEB

BUSINESS MATHEMATICS

(COMMON PAPER)

ATC/166114

VICTOR OUKO AGWANDA

Donor: KASNEB

ATC - LEVEL II

FINANCIAL ACCOUNTING

ATC/166701

JOEL KURIA NJUGUNA

Donor: KASNEB

FUNDAMENTALS OF INFORMATION

COMMUNICATION TECHNOLOGY

(COMMON PAPER)

ATC/167250

RACHEAL KAMWENDE NGUGI

Donor: KASNEB

COST ACCOUNTING

ATC/162564

MARIAM HAMADI SUDI

Donor: KASNEB

RUNNER UP

COST ACCOUNTING

ATC/165786

JOSEPH MWANZANJE NYAWA

Donor: KASNEB

TAXATION

ATC/165431

SIMON MURIITHI GITHEMO

Donor: KASNEB

AUDITING

ATC/161350

HELLEN MUTHONI MWAURA

Donor: KASNEB

BEST OVERALL IN A LEVEL

ATC LEVEL I

ATC/170988

TINA MBEYU MUSYOKI

Donor: KASNEB

ATC LEVEL II

ATC/167354

ROBERT KIPKORIR KEMBOI

Donor: KASNEB

INFORMATION COMMUNICATION

TECHNOLOGY TECHNICIANS

(ICTT) EXAMINATION

ICTT - LEVEL I

INTRODUCTION TO COMPUTING

ICT/6203

NICHOLAS KIPRONO TOO

Donor: KASNEB

COMPUTER MATHEMATICS

ICT/6333

JACKLINE NALIAKA MURIANI

Donor: KASNEB

ENTREPRENEURSHIP AND

COMMUNICATION

(COMMON PAPER)

ICT/6302

CARLOS MUTUA MUITHYA

Donor: KASNEB

COMPUTER APPLICATIONS (THEORY)

ICT/6333


Donor: KASNEB

COMPUTER APPLICATIONS

(PRACTICAL)

ICT/6182

TONNY WAMULA MASAWI

Donor: KASNEB

COMPUTER NETWORKING

ICT/6203

NICHOLAS KIPRONO TOO

Donor: KASNEB

ICTT - LEVEL II

INTERNET SKILLS

ICT/6169

MERCYLINE ACHIENG OKELLO

Donor: KASNEB

COMPUTER SUPPORT AND

MAINTENANCE

ICT/6167

KEVIN ODERO ODHIAMBO

Donor: KASNEB

PROGRAMMING CONCEPTS

ICT/5214

HANNAH NJOKI MUCHUCHA

Donor: KASNEB

NOVEMBER 2015 EXAMINATIONS

PRIZE WINNERS


FOUNDATIONS OF ACCOUNTING

(COMMON PAPER)

ICT/6151

CYNTHIA SYLVIA OKUSIMBA

Donor: KASNEB

INFORMATION SYSTEMS

ICT/6167

KEVIN ODERO ODHIAMBO

Donor: KASNEB


ICTT LEVEL I

ICT/6333


Donor: KASNEB

ICTT LEVEL II

ICT/6151

CYNTHIA SYLVIA OKUSIMBA

Donor: KASNEB

INVESTMENT AND SECURITIES

TECHNICIANS (IST) EXAMINATION

IST - LEVEL I

FINANCE AND INVESTMENTS

IST/323

CALVIN KIMUCHOSI MAUKA

Donor: KASNEB

LAW AND REGULATIONS GOVERNING

FINANCIAL MARKETS

IST/323

CALVIN KIMUCHOSI MAUKA

Donor: KASNEB

CREDIT MANAGEMENT TECHNICIANS

(CMT) EXAMINATION

CMT - LEVEL I

FUNDAMENTALS OF CREDIT

MANAGEMENT

CMT/1090

DORCAS JELAGAT KIMARU

Donor: KASNEB

CMT - LEVEL II

ECONOMICS

(COMMON PAPER)

CMT/1044

DRAKE AKOYA SINGA

Donor: KASNEB

MARKETING AND CUSTOMER

RELATIONS

CMT/1094

DICKSON MUKABURU GATHURA

Donor: KASNEB

LAW GOVERNING CREDIT

PRACTICE

CMT/1044

DRAKE AKOYA SINGA

Donor: KASNEB


CMT LEVEL II

CMT/1044

DRAKE AKOYA SINGA

Donor: KASNEB

DIPLOMA EXAMINATIONS

ACCOUNTING TECHNICIANS

DIPLOMA (ATD) EXAMINATION

ATD - LEVEL I


ACCOUNTING

ATD/1544

ROSEMARY WANJA MWIGE

Donor: KASNEB

RUNNER UP


ACCOUNTING

ATD/9717

EMMACULATE MORAA MOGAKA

Donor: KASNEB

COMMERCIAL LAW

(COMMON PAPER)

ATD/416

CHARITY WAIRIMU MWANGI

Donor: KASNEB


COMMUNICATION

(COMMON PAPER)

ATD/1468

DOREEN SOITA MUHANDO

Donor: KASNEB

INFORMATION COMMUNICATION

TECHNOLOGY

(COMMON PAPER)

ATD/254

DANIEL ONYANGO ODUK

Donor: KASNEB

ATD - LEVEL II


ATD/2806

LORNA KERUBO

Donor: KASNEB


(COMMON PAPER)

ATD/895

JACKLINE WANJA KABURU

Donor: KASNEB

RUNNER UP


(COMMON PAPER)

ATD/3229

SIMON KAMAU KARUMA

Donor: KASNEB

BUSINESS MATHEMATICS AND

STATISTICS

(COMMON PAPER)

ATD/409

JOSEPH KATEE MALUKI

Donor: KASNEB

FUNDAMENTALS OF FINANCE

ATD/2542

STEPHEN OKOTH OWINO

Donor: KASNEB

RUNNER UP

FUNDAMENTALS OF FINANCE

ATD/2343

YONGA MANGALE

Donor: KASNEB

PRIZE WINNERS



ATD LEVEL IATD/2937

SAMWEL RIOBA OKEROSIDonor: KASNEB

ATD LEVEL IIATD/3089

DENNIS MUNYAO WAMBUADonor: KASNEB

RUNNER UP

ATD LEVEL IIATD/9208

VICTOR MUTUNGWA MULIDonor: KASNEB

DIPLOMA IN INFORMATION COMMUNICATION

TECHNOLOGY (DICT) EXAMINATION

DICT - LEVEL I

INTRODUCTION TO COMPUTINGDIC/6

SAMWEL OTIENO OUMADonor: KASNEB

COMPUTER MATHEMATICSDIC/128

VIVEK VILESH CHOHANDonor: KASNEB

COMPUTER APPLICATIONS PRACTICAL I

DIC/6SAMWEL OTIENO OUMA

Donor: KASNEB

DICT - LEVEL II

COMPUTER NETWORKINGDIC/55

JOB KANYIRI NJORADonor: KASNEB

INTERNET SKILLSDIC/55

JOB KANYIRI NJORADonor: KASNEB

COMPUTER SUPPORT AND MAINTENANCE

DIC/84MARY NZULA MWEU

Donor: KASNEB

PROGRAMMING CONCEPTS

DIC/5

BONFACE SHIAKWILA LUMITI

Donor: KASNEB


DICT LEVEL I

DIC/6

SAMWEL OTIENO OUMA

Donor: KASNEB

DICT LEVEL II

DIC/55

JOB KANYIRI NJORA

Donor: KASNEB

DIPLOMA IN CREDIT

MANAGEMENT (DCM)

EXAMINATION

DCM - LEVEL I

FUNDAMENTALS OF CREDIT

MANAGEMENT

DCM/24

ISABEL ACHIENG OLUOKO

Donor: KASNEB

DCM - LEVEL II

CREDIT MANAGEMENT

DCM/33

MICHAEL NYENDO TELEWA

Donor: KASNEB


PRACTICE

DCM/33


Donor: KASNEB


DCM LEVEL I

DCM/24

ISABEL ACHIENG OLUOKO

Donor: KASNEB

DCM LEVEL II

DCM/33


Donor: KASNEB

PROFESSIONAL EXAMINATIONS

CERTIFIED PUBLIC ACCOUNTANTS (CPA)

EXAMINATION

CPA PART I – SECTION 1


(COMMON PAPER)

NAC/222340

MARTIN NYAKUNDI NYAIGOTI

Donor: ERNST & YOUNG

COMMERCIAL LAW

(COMMON PAPER)

NAC/263178

PATRICK KIOKO MUSYOKA

Donor: KINYORI & ASSOCIATES


COMMUNICATION

(COMMON PAPER)

NAC/261890

MILLICENT KALULU WILLY

Donor: KING’ANG’I KAMAU & COMPANY

CERTIFIED PUBLIC ACCOUNTANTS

CPA PART I – SECTION 2

ECONOMICS

(COMMON PAPER)

NAC/256824

MARK MACKENZIE MUTISYA

Donor: WACHIRA IRUNGU & ASSOCIATES

MANAGEMENT ACCOUNTING

NAC/265975

MESHACK MUTIE NGUI

Donor: MUGO & COMPANY CERTIFIED

PUBLIC ACCOUNTANTS

BEST OVERALL IN SECTION (S)

SECTION 1 ONLY

NAC/263178

PATRICK KIOKO MUSYOKA

Donor: RSM ASHVIR

SECTION 2 ONLY

NAC/258536

EVANS OOKO AKATCH

Donor: RSM ASHVIR

PRIZE WINNERS


SECTIONS 1 AND 2 (COMBINED)NAC/257998

DEBORAH NTHOKI MUINDI

Donor: RSM ASHVIR

CPA PART II – SECTION 3

COMPANY LAW

(COMMON PAPER)NAC/243804

AGNES WANJIKU KIBARA

Donor: KASNEB

RUNNER UP

COMPANY LAW


NELLY MWENDWA KIRIMI

Donor: KASNEB

FINANCIAL MANAGEMENT


YVES ISHIMWE DARAFU

Donor: KIGO NJENGA & COMPANY

CERTIFIED PUBLIC ACCOUNTANTS (KENYA)

RUNNER UP

FINANCIAL MANAGEMENT


BILLY ODHIAMBO OCHIENG

Donor: KASNEB

FINANCIAL REPORTINGNAC/256979

VELMA ACHIENG OMONDI

Donor: PRICEWATERHOUSE COOPERS

CERTIFIED PUBLIC ACCOUNTANTS

CPA PART II – SECTION 4

AUDITING AND ASSURANCENAC/234689

RODGERS KALOKI MUTUA

Donor: CARR STANYER GITAU & COMPANY

MANAGEMENT INFORMATION

SYSTEMS (COMMON PAPER)NAC/265416

IMMACULATE ATIENO AGENG’A

Donor: DELOITTE & TOUCHE

QUANTITATIVE ANALYSIS


RONO KIMUTAI VICTOR

Donor: MHASIBU SACCO LIMITED


SECTION 3 ONLYNAC/232120

YVES ISHIMWE DARAFU

Donor: MAZARS CERTIFIED PUBLIC

ACCOUNTANTS (KENYA)

RUNNER UP


JACOB MUKUNDI KARIUKI

Donor: KASNEB


JESCA ALICE NABIRYE

Donor: H. W. GICHOHI & COMPANY


JUSTUS KYALO MANYALA

Donor: MBAYA & ASSOCIATES

CPA PART III – SECTION 5

RUNNER UP (2)

STRATEGY, GOVERNANCE AND

ETHICS (COMMON PAPER)NAC/90574

JOSEPH MUKANGA KARIUKI

Donor: KASNEB

RUNNER UP (3)


ETHICS (COMMON PAPER)NAC/242617

JUDITH NDETO MUSAU

Donor: KASNEB

ADVANCED MANAGEMENT

ACCOUNTINGNAC/236676

TERESIA MBUTHIA

Donor: KPMG KENYA

RUNNER UP (1)

ADVANCED MANAGEMENT


DOUGLAS RUTTO KIPROTICH

Donor: KASNEB

RUNNER UP (2)

ADVANCED MANAGEMENT


JOYCE NYAMBIA KAROBIA

Donor: KASNEB

ADVANCED FINANCIAL MANAGEMENTNAC/173065

ANNA KATAA KATIWA

Donor: DELOITTE & TOUCHE

CPA PART III – SECTION 6

ADVANCED PUBLIC FINANCE AND

TAXATIONNAC/198759

JOHN KIGURU MBUGUA

Donor: PKF KENYA

ADVANCED AUDITING AND

ASSURANCENAC/230608

CECILIA WAYUA SYANO

Donor: MR. DANIEL M. NDONYE

ADVANCED FINANCIAL REPORTINGNAC/179861

RUTTO ALEX

Donor: MURDOCH McCRAE & SMITH



GEORGE NJUGUNA NJUBI

Donor: INSTITUTE OF CERTIFIED PUBLIC

ACCOUNTANTS OF KENYA (ICPAK)


JOHN KIGURU MBUGUA

Donor: FIDELITY INSURANCE COMPANY

LIMITED

PRIZE WINNERS



SYLVAIN NSABIMANA


ACCOUNTANTS OF KENYA (ICPAK)

BEST LADY GRADUATENAC/174456

MARY MUGURE KUNG’U

Donor: ASSOCIATION OF WOMEN

ACCOUNTANTS OF KENYA (AWAK)

CERTIFIED SECRETARIES (CS)

EXAMINATION

CS PART I – SECTION 1

ORGANISATIONAL BEHAVIOURNSC/253863

DOROTHY KANYUA NJERU

Donor: PARKER RANDALL

BUSINESS COMMUNICATION NSC/260032

MARTIN WEKESA MABONGA

Donor: VISION INSTITUTE OF

PROFESSIONALS

CS PART I – SECTION 2

PRINCIPLES OF ACCOUNTING

(COMMON PAPER)NSC/262652

SAMWEL MACHARIA KARANJA

Donor: KINYORI & ASSOCIATES

PUBLIC FINANCE AND TAXATION

(COMMON PAPER)NSC/262652


Donor: PKF KENYA


SECTION 1 ONLY

NSC/253863

DOROTHY KANYUA NJERU


SECRETARIES OF KENYA (ICPSK)

SECTION 2 ONLYNSC/262652


Donor: KASNEB

SECTIONS 1 AND 2 (COMBINED)NSC/262652


Donor: KASNEB

CS PART II – SECTION 3

COMPANY LAW

(CS only)NSC/173690

ANTHONY KARANJA MAINA

Donor: AFRICA REGISTRARS

CERTIFIED PUBLIC SECRETARIES

PRINCIPLES AND PRACTICE OF

MANAGEMENTNSC/251298

SAMUEL OMBOKE NYABUTE

Donor: KASNEB

CS PART II – SECTION 4

CORPORATE SECRETARIAL

PRACTICENSC/264306

MIKE OGERA MARERI

Donor: NGURU MUREGI &

ASSOCIATES

LAW AND PROCEDURE OF

MEETINGS

NSC/252500

ZAHRA RINAH NECHESA

Donor: QUANTUM REGISTRARS



LILIAN JEPLETING KOECH

Donor: KASNEB


ZAHRA RINAH NECHESA

Donor: KASNEB


VICTOR MUTHOKA WAMBUA

Donor: SACCO SOCIETIES

REGULATORY AUTHORITY (SASRA)

CS PART III – SECTION 5

HUMAN RESOURCE

MANAGEMENT

NSC/257341

MOHAMED NOOR HASSAN

Donor: SAVANNA & ASSOCIATES

RUNNER UP

HUMAN RESOURCE

MANAGEMENTNSC/217456

KENNEDY ONDIEK OSORE

Donor: KASNEB

FINANCIAL MARKETS LAWNSC/241394

OYOLO JANESYLVIA ANGUBA

Donor: KASNEB

GOVERNANCE AND ETHICSNSC/203878

FRIDAH MUMBUA MUSAU

Donor: KIMANI KERRETS &

COMPANY

RUNNER UP

GOVERNANCE AND ETHICS

NSC/251491JOSEPH MUCHINAH GITAU

Donor: KASNEB

CS PART III – SECTION 6

STRATEGIC MANAGEMENTNSC/248309

JACOB OLUOCH MINIGA

Donor: KASNEB

PUBLIC POLICY AND

ADMINISTRATIONNSC/237578

CONSOLATA MWIKALI VUNDI

Donor: KASNEB

PRIZE WINNERS


GOVERNANCE AND

SECRETARIAL AUDITNSC/209849

BENJAMIN BETT CHERUIYOT

Donor: H.W. GICHOHI & COMPANY



MOHAMED NOOR HASSAN


SECRETARIES OF KENYA (ICPSK)


BENJAMIN BETT CHERUIYOT

Donor: AXIS KENYA


JAMES KINOTI KIRERA

Donor: KPMG KENYA

BEST LADY GRADUATENSC/237578

CONSOLATA MWIKALI VUNDI

Donor: WOMEN ON BOARDS

NETWORK KENYA

CERTIFIED INFORMATION

COMMUNICATION TECHNOLOGISTS

(CICT) EXAMINATION

CICT PART I - SECTION 1

INTRODUCTION TO COMPUTINGCTP/2668

BENJAMIN MAINGI MUTHONI

Donor: KASNEB

COMPUTER APPLICATIONS –

PRACTICAL CTP/2193

ERICK KIMINZA MAKAU

Donor: KASNEB

CICT PART I - SECTION 2

OPERATING SYSTEMS – PRACTICAL CTP/2438

WINFRED WAIRIMU MURIUKI

Donor: KASNEB

COMPUTER SUPPORT AND

MAINTENANCECTP/2745

ERIC KIOKO MUOKA

Donor: KASNEB


SECTION 1 ONLYCTP/2193

ERICK KIMINZA MAKAU

Donor: KASNEB

RUNNER UP


ERIC KIOKO MUOKA

Donor: KASNEB


BENJAMIN MAINGI MUTHONI

Donor: KASNEB

SECTIONS 1 AND 2 (COMBINED)CTP/2745

ERIC KIOKO MUOKA

Donor: KASNEB

CICT PART II - SECTION 3

DATABASE SYSTEMSCTP/2572

DANIEL KITHUKA NZAU

Donor: KASNEB

SYSTEM ANALYSIS AND DESIGNCTP/2179

DANIEL NYANGWONO OMERI

Donor: KASNEB

STRUCTURED PROGRAMMINGCTP/2148

KENNETH MACHARIA WANGUI

Donor: KASNEB

CICT PART II - SECTION 4

OBJECT ORIENTED

PROGRAMMINGCTP/2200

ALBERT MMBOYI MUHATIA

Donor: KASNEB

WEB DESIGN AND E-COMMERCECTP/1811

JOHN MUTHUA MUMBI

Donor: KASNEB

DATA COMMUNICATION AND

COMPUTER NETWORKS – PRACTICAL CTP/2580

DAVID CHOMBA KIMANI

Donor: KASNEB



PAUL MBUGUA WAINAINA

Donor: KASNEB


ALBERT MMBOYI MUHATIA

Donor: KASNEB


DAVID CHOMBA KIMANI

Donor: KASNEB

CICT PART III - SECTION 5

SOFTWARE ENGINEERINGCTP/2077

OBADIAH KIMWETICH CHESIRE

Donor: KASNEB

MOBILE APPLICATION DEVELOPMENTCTP/2133

TEBLON MONG’INA ONDIMU

Donor: KASNEB

CICT PART III – SECTION 6

SYSTEMS SECURITYCTP/1716

JOHN KAMAU IBARE

Donor: KASNEB

INFORMATION SYSTEMS PROJECT

MANAGEMENTCTP/1716

JOHN KAMAU IBARE

Donor: KASNEB

PRIZE WINNERS


RESEARCH METHODSCTP/2257

DAVID BAIYA MWATHIDonor: KASNEB

ICT PROJECTCTP/1515

MARK ONGORO OLANG’ODonor: KASNEB



MWENDWA BRIAN KIMONDIUDonor: KASNEB


JOHN KAMAU IBAREDonor: KASNEB

RUNNER UP





BEST LADY GRADUATECTP/550

CHARITY KARIMI MUGENDI

Donor: KASNEB

CERTIFIED INVESTMENT AND

FINANCIAL ANALYSTS (CIFA)

EXAMINATION

CIFA PART I – SECTION 1

FINANCIAL MATHEMATICSISP/4746

DEVONA NYARONGO SIKEBUDonor: KASNEB

CIFA PART I – SECTION 2

FINANCIAL INSTITUTIONS AND MARKETSISP/4636

MOSES MWENDA ANANGADonor: KASNEB


SECTION 1 ONLY

ISP/4746

DEVONA NYARONGO SIKEBU

Donor: KASNEB

SECTION 2 ONLY

ISP/4354

FRANCIS KARIMI WACERA

Donor: KASNEB

SECTIONS 1 AND 2 (COMBINED)

ISP/4703

VIVIAN MUTHONI MURIGI

Donor: INSTITUTE OF CERTIFIED INVESTMENT AND FINANCIAL ANALYSTS (ICIFA)

CIFA PART II – SECTION 3

REGULATION OF FINANCIAL

MARKETS

ISP/4277

DANSON IRUNGU KARIUKI

Donor: KASNEB

CORPORATE FINANCE

ISP/4100

DANIEL KAMONGO NJOGU

Donor: KASNEB

FINANCIAL STATEMENTS

ANALYSIS

ISP/4252

JOSEPH MWANIKI LEMEREU

Donor: PROF. JOSIAH ADUDA

CIFA PART II – SECTION 4

EQUITY INVESTMENTS

ANALYSIS

ISP/4453

ALEX MOKAYA MOMANYI

Donor: KASNEB

PORTFOLIO MANAGEMENT

ISP/4487

MILLER SAMMY OCHIENG’

Donor: KASNEB


SECTION 3 ONLY

ISP/4398

FLORENCE WANGARI WAHINYA

Donor: STAR COLLEGE OF MANAGEMENT

STUDIES

SECTION 4 ONLY

ISP/4487

MILLER SAMMY OCHIENG’

Donor: STAR COLLEGE OF MANAGEMENT

STUDIES

SECTIONS 3 AND 4 (COMBINED)

ISP/3974

JOAN JEBIWOTT KEMBOI

Donor: INSTITUTE OF CERTIFIED INVESTMENT AND FINANCIAL

ANALYSTS (ICIFA)

CIFA PART III – SECTION 5

FIXED INCOME INVESTMENTS

ANALYSIS

ISP/2626

SAMUEL NGUGI KANYI

Donor: KASNEB

ALTERNATIVE INVESTMENTS ANALYSIS

ISP/2626

SAMUEL NGUGI KANYI

Donor: DR. JONAH K. AIYABEI

CIFA PART III – SECTION 6

ADVANCED PORTFOLIO MANAGEMENT

ISP/3124

ELIZABETH WANJUGU WAIRIMU

Donor: DR. GEORGE O. WAKAH

INTERNATIONAL FINANCE

ISP/3790

JOSHUA KILONZO MUTUKU

Donor: KASNEB

DERIVATIVES ANALYSIS

ISP/3211

JOSPHAT NGUNDO MURIUKI

Donor: KASNEB

PRIZE WINNERS


Once you have experienced

EXCELLENCE you will

never again be content with

mediocrityThomas S. Monson


SECTION 5 ONLYISP/2626

SAMUEL NGUGI KANYI

Donor: INSTITUTE OF CERTIFIED

INVESTMENT AND FINANCIAL ANALYSTS

SECTION 6 ONLYISP/3211

JOSPHAT NGUNDO MURIUKI

Donor: INSTITUTE OF CERTIFIED

INVESTMENT AND FINANCIAL ANALYSTS

(ICIFA)

SECTIONS 5 AND 6 (COMBINED)ISP/2593

CONSTANTINE GATHOGO MUNGAI

Donor: DR. GEORGE O. WAKAH

BEST LADY GRADUATEISP/2690

LUCY WANJIKU KIBUTHI

Donor: STAR COLLEGE OF

MANAGEMENT STUDIES

CERTIFIED CREDIT PROFESSIONALS

(CCP) EXAMINATION

CCP PART I – SECTION 1

CREDIT MANAGEMENT

CCP/2291BETHWEL WESONGA NYARANGA

Donor: INSTITUTE OF CREDIT MANAGEMENT (ICM)


SECTION 1 ONLYCCP/2255

WILLIAM MOMANYI KEGICHA

Donor: KASNEB



Donor: KASNEB

SECTIONS 1 AND 2 (COMBINED)CCP/2255


Donor: KASNEB

CCP PART II – SECTION 3

MARKETING AND PUBLIC

RELATIONSCCP/2182

PATRICK KIAMBATI MWIRICHIA

Donor: KASNEB

CCP PART II – SECTION 4


PRACTICECCP/2124

CAROLINE KOKI KISAULU

Donor: KASNEB



CAROLINE KOKI KISAULU

Donor: KASNEB


LUCY WAIRIMU RICHU

Donor: KASNEB


LUCY WAIRIMU RICHU

Donor: KASNEB

CCP PART III – SECTION 5


ETHICS (COMMON PAPER)CCP/2108

ESTHER WANGECHI MURIUKI

Donor: KPMG KENYA

RUNNER UP


ETHICS(COMMON PAPER)CCP/2151

NAHASHOWN THEURI MUSHANGI

Donor: KASNEB

BANKING LAW AND PRACTICECCP/877

ALOUISE OBOLL NG’ONG’A

Donor: KASNEB

CREDIT MANAGEMENT IN THE

FINANCIAL SECTORCCP/2089

JAMES KAMAU UGI

Donor: INSTITUTE OF CREDIT MANAGEMENT (ICM)

CCP PART III – SECTION 6

DEBT RECOVERYCCP/2066

PATRICK WANDETO MURAGURI

Donor: KASNEB

CORPORATE LENDINGCCP/1541

JOHNSON HENRY RANDU

KASNEB

CREDIT PRACTICECCP/2066

PATRICK WANDETO MURAGURI

Donor: KASNEB



ESTHER WANGECHI MURIUKI

Donor: KASNEB


JOHNSON HENRY RANDU

Donor: KASNEB


PETER NDERITU GITHAIGA

Donor: SACCO SOCIETIES REGULATORY

AUTHORITY (SASRA)

PRIZE WINNERS

KASNEB NEWSLINE · K.C.S.E. C (plain) K.C.S.E. C (plain) Diplomas Certificates Certificates:...

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Transcript of KASNEB NEWSLINE · K.C.S.E. C (plain) K.C.S.E. C (plain) Diplomas Certificates Certificates:...