Faida Investment Bank Limited ("FIB") is a market leader in the Kenyan securities and capital markets,  achieving consistent, unassailable top performance in secondary trading at the Nairobi Stock Exchange. We emerged fifth in a market of 23 players in three of the last five years and grow the volume of business transacted within the period by 24 times. We have achieved these milestones by consciously observing standards of prudence, efficiency and friendliness to investors.

Our reputation is best reflected in the quality of our customer base, institutions and individuals who demand and get the highest value proposition. FIB subscribes to deliver professional services under a business model built around the following core values and strengths: 1.  Qualified professional staff, which we nurture and develop,  2.   Personalised service for our clients – we aim to provide you a transaction channel to suit your needs,  3.   A culture of impeccable ethical standards,  4.  Flexibility – we do our best to accommodate individual specific needs. 
                                                          

                                                                         Our Mission
                                              "To be the pre-eminent provider of financial services through
                                      superior and personalized service and intimate market knowledge, while
                                          maximizing investor opportunities through leadership in research ".

Founded as Faida Securities Limited, (a Stock Brokerage Firm) in 1995, FIB was awarded an Investment Banking licence in December 2007. We have an extensive network in the region with a subsidiary recently incorporated in Rwanda, with plans to set up elsewhere in Sub-Saharan Africa.

We were also extensively involved in the introduction of the Automated Trading System (ATS) and the Wide Area Network (WAN) by the Nairobi Stock Exchange (NSE), where our Managing Director, Bob Karina was the chairman of both the ATS and WAN Implementation Committees.

Legal Status 

Faida Investment Bank Ltd is a limited company incorporated in Kenya on 11^th November 1994 in accordance with the Companies Act (Registration No. 44170) and licensed as an Investment Bank under the Capital Markets Authority (Licensing Requirements) (General) Regulations, 2002. 

Faida Investment Bank’s head office is located at Windsor House, 1^st Floor, University Way Nairobi and has a Professional Indemnity Cover for all our clients, secured by AIG Insurance Kenya. 

The directors of Faida Investment Bank are Bob Karina (Managing Director), Dennis Waweru (Marketing Director), and David Mataen (Corporate Finance & Research Director). 

Services Offered
 
Brokerage Services: The buying and selling of Shares of publicly quoted Companies as well as fixed income securities on behalf of the investing public, at the Nairobi Stock Exchange, of which we are members. 

Portfolio Creation and management: We create portfolios in line with the risks clients are willing to take and their investment goals and constraints.  We continually monitor the investors’ needs and capital market conditions and when necessary, modify the investment strategy accordingly.

Discretionary portfolio management: available for those investors who would like to delegate the management of their investment to professional managers who will look after their interests and make decisions for them and report regularly to them.

Markets and institutional research: Our Research Department conducts fundamental research on quoted Companies and uses relative financial ratios calculated from audited Company accounts as well as established fundamental techniques to value and forecast future performance of such Companies.  We on request, avail our analysis findings to our clients.  The research department also provides market information, investment perspective and guidance.

Investment Advisory: Where we strive to make investment buy/or sell recommendations for our clientele.

Corporate Finance Advisory: We offer transaction advisory in all equity and debt capital market transactions as transaction advisors or lead sponsoring stockbrokers; private equity placements; balance sheet restructuring; financing arrangements and issues distribution.  In all we do, we follow through from idea generation to deal completion, whether it is giving strategic advice, leveraging business insights to drive creative solutions or delivering superior executions.   

Our Retail Franchise & Distribution Network

Faida Investment Bank’s top performance in the Capital Markets, (highest number of applications for the KCB Rights Issue and the KenGen IPO) is attributed to our retail franchise and distribution network in the region with a representation in both Uganda (MBEA Brokerage Services Uganda Ltd), Tanzania (Orbit Securities Ltd in Dar es Salaam) and now a subsidiary in Rwanda. FIB has Branch offices and Agents in the regions shown below:

sTRATEGIC PARTNERSHIPS 

FIB has formed strategic partnerships with large regional organizations giving clients access to markets all over Africa such as Uganda, Southern Africa, Ghana, Rwanda, Tanzania, and Zambia

Market performance 

FIB is a market leader in the Kenyan securities and capital markets,  achieving consistent, unassailable top performance in secondary trading at the Nairobi Stock Exchange to  emerge fifth in three of the last five years in a market of 23 players, and grow business transacted, 24 times in the same period.FIB subscribes to delivery of professional services under a business model built around these core strengths:

Qualified professional staff, which we nurture and develop

Personalised service for our clients – we aim to provide you a transaction channel to suit your needs

A culture of impeccable ethical standards

Flexibility – we do our best to accommodate individual specific needs. 

Kenyan Equities Market 

Faida Investment Bank has consistently been one of the top market performers in Kenya in the last five years as evidenced by our equity turnover as shown below: 

Source: Nairobi Stock Exchange

Kenyan Fixed Income Market 

FIB only started fixed income trading in 2007 and obtained ranking from then on. Our fixed income turnover for the year ended 31^st December 2007 was Ksh 29.5 billion. In 2008, FIB was the leader in Bond Trading with total turnover at Ksh 44 billion, representing 32% of the market. Our performance in 2009 was nothing short of spectacular with our bond turnover numbers almost doubling to Ksh 82 billion thereby securing our dominant position amongst our peers.

Source: Nairobi Stock Exchange   

FIB’s Role in THE Development of Regional Capital Markets

Faida Investment Bank has been involved in the development of the capital markets in East Africa:

 Implementation of the Automated Trading System where our Managing Director, Bob Karina was the Chairman of the ATS Implementation Committee that was formed by the NSE Board to oversee the project.

The implementation of the Wide Area Network (WAN), where trading of shares is now done from Stockbrokers offices. Bob Karina chaired the NSE Board Committee on the Implementation of the WAN

FIB is a founding member at the Rwanda Stock Exchange.

Training of the Uganda Stock Exchange members, where our Director Dennis Waweru was a facilitator at a workshop where all Uganda Stock Exchange members were trained on the operations of a stockbrokerage firm. 

A brief synopsis of our capital markets experience OVER THE PAST FEW years  

We have been involved in the following Capital Market transactions: 

Co-Operative Bank of Kenya IPO – (August – December 2008)
(Lead Sponsoring Stockbroker)
Co-operative Bank of Kenya wanted to increase its outreach and quality of its service offerings to its clients. It therefore wanted to raise KShs 6.7 billion to finance business expansion initiatives and improvements of its service delivery platforms. Owing to capital markets slump occasioned by the global economic recession, the transaction was able to raise KShs 5.4 billion which is 81% of the targeted proceeds. 

Kenya Commercial Bank Rights Issue – (March  - August 2008)
(Transaction Advisor & Lead Sponsoring Broker) 
Kenya Commercial Bank Ltd (KCB) appointed Faida Investment Bank as a Transaction Advisor and Lead Sponsoring Broker to help raise funds for the growth and expansion plans of KCB as well as to meet future prudential requirement compliance of the Central Bank of Kenya (“CBK”).  

Kenya Commercial Bank ESOP (Employee Share Ownership Plan) – (July – Nov 2008)
(Transaction Advisor & Lead Sponsoring Broker) 
Kenya Commercial Bank Ltd (KCB) appointed Faida Investment Bank as a Transaction Advisor and Lead Sponsoring Broker to help put together an ESOP for employees with a view to increasing business value for all stakeholders. The aim was to closely align employee performance with the Bank’s financial business and objectives.  

Kenya Commercial Bank Cross Listing in Tanzania & Uganda – (June – December 2008)
(Transaction Advisor & Lead Sponsoring Broker) 
Kenya Commercial Bank Ltd (KCB) appointed Faida Investment Bank as a Transaction Advisor and Lead Sponsoring Broker to list of all its shares in the Uganda Securities Exchange and the Dar-es-Salaam Stock Exchange. 

Safaricom IPO – (Sept 2007 – June 2008)
The Government of Kenya was selling 25% equity steak in Safaricom Ltd to the public through an IPO. Faida Investment Bank Ltd was appointed the Lead Sponsoring Broker for this IPO. 

Olympia Capital Holdings Rights Issue (Oct 2007)
Olympia Capital held a Rights Issue in October 2007 to raise Sh420 million to finance a new plant and acquisitions. The Issue was slightly oversubscribed. FIB was selected as the Lead Sponsoring Broker along with Standard Investment Bank Ltd.

Diamond Trust Bank Kenya Ltd Rights Issue – (Nov – Dec 2006)
Diamond Trust Bank wanted to finance automation and branch expansion by offering KShs 15.5 million rights to shareholders at a discounted price of KShs 50. The company expected to raise KShs 776 million on full subscription but surpassed this margin by 197%. FIB was appointed a co-sponsoring stock broker and placed KShs 7.6 m worth of shares, representing 10% of the issue. 

Kenya Electricity Generating Company (KenGen) – (Nov 2005 – Jun 2006)
Government of Kenya was selling 30% equity in the Company to the public through an IPO. Faida Investment Bank was appointed as a co-sponsoring stockbroker for the KenGen IPO in September 2005. The issue was so far the largest in the history of Kenyan IPOs, targeting to raise between KShs 7.8 billion (US$111 to US$139 Million) but ended up attracting Kshs 26 billion. Faida put in the highest number of applications: 21,465, worth KShs 1,746,384 with KShs 40,137,495 worth of shares allotted. 

Uchumi Supermarket Rights Issue – (Aug – Oct 2005)
The company needed to raise KShs 1.2bn to finance reorganisation and retire debilitation debt. Faida acted as participating stockbroker placing over KShs 150M worth of shares emerging second among the stockbrokers in Kenya. 

Kenya Commercial Bank Ltd Rights Issue - (Jun – Aug 2004)
Kenya Commercial Bank needed to raise KShs 2 billion in additional equity capital to boost its borrowing and lending capacity. The Government of Kenya, the largest shareholder, reduced its shareholding from 35% to 26% by not participating in the Issue. Faida acted as a participating stockbroker placing more than 5M shares, valued at KShs 245,923,172.00, representing 12.5 % of the issue.  

Access Kenya Limited IPO – (May 2007)
Access Kenya, a corporate Internet service provider wanted to raise KShs 800 million to finance growth and at the same time acquire the option to use its own shares as instruments for acquisitions. It therefore sold 40% equity to achieve this. Faida acted as a participating stockbroker selling KShs 14.7 million worth of equity. 

ScanGroup Limited IPO – (Aug 2006)
Bharat Thakar, founder and CEO of Scan Group, a marketing and advertising services company, wanted to realise capital gains from his investments, as well as finance expansion and consolidation within the region. He therefore sought to sell 43.4% shareholding in the business for a total KShs 680 million. Faida acted as a participating stockbroker in which role it distributed KShs 428.4 million worth of shares. 

Eveready East Africa IPO – ( Nov 2006)
Eveready offered 30% of the company by selling 63M shares to the public at 9.50. The IPO was oversubscribed by about 800%! The largest oversubscription in the history of the Nairobi Stock Exchange. Faida acted as a participating stockbroker placing KShs KShs 339,444,500  

TPS Serena Limited – IPO and Share swap
The Aga Khan group, majority owner of TPS Serena wanted to realise capital gains by partially divesting in the business through an IPO. Faida was a participating stockbroker in the offer. The group later in 2006 wanted to incorporate its other East African hotels businesses in the listed entity. It therefore created TPS Serena EA and substituted its shares with those of the former TPS Serena Limited which only constituted Kenyan operations. Faida participated in the resulting share swap. 

National Bank of Kenya – Secondary offer
The Government of Kenya, as a part of its ongoing privatisation and objective of full and complete divestment from commercial enterprises, sought to sell a further 40 million shares in National Bank of Kenya to reduce it’s shareholding to 22.5%. Faida acted as a participating stockbroker in the issue. 

Athi River Mining IPO -  (Oct. 1996)
Paunrana family, majority shareholders in Athi-River Mining, a cement and construction materials business wanted to finance expansion by selling shares to the public through an offer for subscription. Faida acted as a participating stockbroker. 

Mumias Sugar Company IPO – (Nov, 2001)
The government of Kenya, in keeping with its avowed objective of privatising public institutions engaging in commercial concerns, wanted to sell to the public 300 million shares in Mumias Sugar through an IPO. Faida acted as a participating broker. The total proceeds of the sale amounted to KShs 1.12billion.  

ICDC Investment Company Offer for subscription Issue -  (July 2001)
ICDCI had spotted compelling investment opportunities for which it was capacity-constrained to exploit. It therefore sought to raise KShs 500 million in an offer for subscription. Faida Investment Bank acted in this offer as a participating stockbroker. 

Kenya Airways Ltd IPO -  (Jun – Oct 1996)
As part of the national privatisation programme, the Government of Kenya was selling shares in Kenya Airways to the public through an IPO in which Faida, was one of the appointed co-sponsoring brokers.
  


The Team

Bob Karina, Managing Director

Mr. Bob Karina is the executive authority in the day to day running of the Company.  He is an accomplished stockbroker, an information technology professional and a successful businessman. He is the immediate past first Vice-Chairman at the Nairobi Stock Exchange, a Governor and Board Member of the Kenya Private Sector Alliance (KEPSA) and a Board Member of the Central Depository and Settlement Corporation. Bob is also a member of the Institute of directors, Centre for Corporate Governance, as well as the chairman of the Finance Committee of Kenya National Chamber of Commerce. 

Bob Karina also played a key role in the implementation of the Automated Trading System and the Wide Area Network, as the Chair of the committees that spearheaded these developments in the Kenyan Capital Markets.

He has broad experience in advising institutional and corporate investors, corporate finance consulting and research analysis.

Dennis Waweru. Marketing Director & Chief Dealer

Dennis is the Company's Chief dealer.  He holds an MBA in Strategic Management from Moi University and a Bachelor of Commerce Degree. He has over ten years experience as a dealer.  He is also in-charge of sales and marketing responsible for building and maintaining institutional client relationships and for the procurement of equity business from institutional clients and ensures that client's orders are executed with speed and exactitude.

David Mataen, Corporate Finance & Research Director

Mr. Mataen is a corporate finance specialist with experience spanning capital markets, financial consultancy, institutional research and financial analysis. He holds an MBA in finance and a Bachelors degree in Economics and is a candidate member of the Canadian Institute of Chartered Business Valuators. David has previously worked in PricewaterhouseCoopers as a Corporate Finance and Strategy consultant, and before that at the Bank of Montreal in Toronto Canada as a direct sales Manager, as well as Shah Munge & Partners as Corporate Finance Manager.

He is in charge of our transaction and financial advisory and research functions. David discusses topical business issues weekly in the Money & Markets pages of “Business Daily”, a publication of the Nation Media Group Ltd.

John Thagana, Head of Fixed Income

Thagana heads our bond trading department and is involved in the pricing, valuation, and dealing of fixed income securities & NSE quoted company’s shares, and has a BA degree in Business/Economics from Kenyatta University and an MBA (Finance) Degree from the University of Nairobi. He has over 15 years experience in the banking sector specializing in Treasury management and is responsible for overseeing the growth and development of the fixed income department at Faida Investment Bank.

Thagana was formerly the Head of Treasury at Fina Bank Limited where he was the convenor of the Asset and Liabilities Committee (ALCO) across the region as well as the chair of the Group Strategic Growth Committee and the Board Member of the regional ALCO functions. Prior to Fina Bank, Thagana had been head-hunted to set up the Treasury front- and back-office departments at Equity Bank when the institution was converted from a building society into a bank. Thagana was also instrumental in developing the Barclays Africa Group Treasury Sales agenda/business plan which was rolled out across Africa. 

Rina Hicks, Operations & HR Director

Rina joined Faida Investment Bank in 2002. She is currently pursuing an MBA degree at Strathmore Business School and sat for CFA ® Level II in 2007. Rina holds a Bachelor of Business degree, majoring in Finance and Marketing from Edith Cowan University, Perth, Australia. She is widely travelled, having visited the major global financial markets and institutions such as the New York Stock Exchange, the Reserve Bank of Australia, London Stock Exchange, Bank of England, Chicago Board of Trade, Mercantile Exchange and other markets in the USA, which has been useful to her work.

She has been with the company for over 6 years and is responsible for the overall operations of the institution, human resource, and discretionary portfolio management. Rina also conducts presentations and educational seminars to companies and groups of individuals on the investment opportunities available at the Nairobi Stock Exchange.  In January 2007 she was appointed as a Director of the Youth Enterprise Development Fund by the Ministry of Youth Affairs & Sports, where she served for three years, and in September 2007, a Director of Enablis East Africa, where she served for two years.

Joseph Macharia, Senior Dealer

Joseph has been instrumental in placing FIB at the top in equities trading at the Nairobi Stock Exchange. He is a seasoned equities dealer and is also involved in coordinating requisite back office trading operations until execution confirmations. Joseph also handles the company's business development initiatives. His clients include fund managers, commercial banks, high net worth clients and key local institutional investors. Joseph was formerly a dealer with M/s Francis Thuo & Partners Ltd. He has over 14 years experience in the industry. He holds a Diploma in Systems Analysis and Design (ACP UK).

Alexander Muiruri, Research Analyst

Alex has amassed a few years of experience under his belt within the Kenyan stock brokerage industry and has been an analyst throughout. He is currently completing his ACCA qualification at Strathmore Business School (SBS) and holds a Bachelor of Business degree, majoring in Accounting and Finance from United States International University in East Africa. Alex joined FIB in 2009 and is currently developing the research desk.