May 2017

MAY 2017 ISSUE 110 KSH 250

WWW.BIASHARALEO.CO.KE

USH 7,500

TSH 5,000

A VISIONARY SMILE: Bob Collymore, CEO, Safaricom.

KENYA MARKS 10 YEARS OF M-PESA

INSIDE STANDING OUT:

Samuel Abisai’s mega jackpot fortune

BUSINESS KIT:

Customer Service, Management, ICT, Sales

SKILLS DEVELOPMENT:

Mku’s Graduate Enterprise Academy

YOUNG ENTREPRENEUR: Davis Nyamare - A brand on wheels MAY 2017

BIASHARA LEO

RWF 1,900

Come to Geminia Insurance and have all your Insurance needs under one umbrella PRODUCTS The company has a wide range of products with some tailor made to meet unique client’s needs.

General Insurance

• Motor Insurance • Fire & Perils • Industrial All Risks • Machinery Breakdown • Erection All Risks • Contractors All Risks • Marine Insurance • Domestic Package • Electronic Equipment/Computer • Political Violence, Terrorism & Sabotage • Burglary • Money • Fidelity Guarantee

• All Risks • Personal Accident/Group Personal Accident • Goods in Transit • Plate Glass • Public Liability • Professional Indemnity • Work Injury Benefit Act (WIBA) • Employers Liability • Directors& Officers Liability(D&O) • Trustee Liability

Life Insurance

• Education Policies • Protection Policies • Investment Policies • Protection & Savings Policies • Group Life Policy • Group Credit Policy • Mortgage Protection Policies • Retirement Policies • Wealth Transfer Policies • Funeral Cover

NB: Our Motor, Domestic package and Personal Accident each have life rider embedded on them to cover death from whatever cause including illness up to the sum insured subject to a limit of 2 Million shillings per person. The policy can be extended to include dependants or employees of the insured who are 18 years and above.

CONTACTS Head Office, 6th Floor, Geminia Plaza Upper Hill P.O Box 61316 City Square, 00200 Nairobi Tel: +254 20 2782000/2782500

Cell: +254 734 230860, +254 23 057249 Email: info@geminia.co.ke, life@geminia.co.ke Web: www.geminia.co.ke

BRANCH NETWORK • NAIROBI CBD: Agip house 1st Floor • MOMBASA: Diamond Trust Arcade ,Moi Avenue • ELDORET: Geminia Block, Iten Road • KISUMU: Oginga Odinga Road, Minoki Building 1st floor • KISII: Umoja Complex,1st Floor, Kisumu Road • NYERI: Konahauthi Building, 1st floor Next to Post office • MERU: Twin Plaza, 2nd floor, Ghana Street

THINK INSURANCE THINK GEMINIA

Contents In this issue

WELCOME 3 More than a thousand words 4 Articulate 6 CORPORATE BRIEFS 10 • Farm Concern International nurtures the growth of agro-pastoralists • Ogilvy Africa named best agency in Africa • Safaricom rollouts out M-pesa 1 tap • Government of Rwanda dedicated to promote its move to a cashless economy • Equity Bank scoops 19 awards in a row • The dawn of the fourth industrial revolution in Africa is here • Mku’s International Conference on Peace, Security and Social Enterprise • SKF launches new anti-counterfeit app in Kenya • Government pledges support as SportPesa goes live in Tanzania

STANDING OUT 19 • Samuel Abisai’s mega jackpot fortune YOUNG ENTREPRENEUR 20 • Davis Nyamare - A brand on wheels EXECUTIVE PROFILE 22 • Beatrice Wababu BUSINESS KIT 24 •Customer Service, Management, ICT, Sales MAIN STORY 34 • Kenya marks 10 years of M-Pesa CAREER GROWTH 48 • Ng'ang'a Mbugua - A penchant for the pen SKILLS DEVELOPMENT 50 • Mku’s Graduate Enterprise Academy

46.

FEATURE

Geminia Insurance: Keen to top the tier

54.

KILIMO

Samuel Mbugua: He could have jumped the hurdle; but he chose to go round it

@biasharaleomag

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MAY 2017

Biashara Leo Magazine

CRYING FOR PEACE

L

and, labour, capital and entrepreneurship maybe important factors of production. Nevertheless, even if they are combined in a way that will enable them yield optimal profits, all this effort may become a cropper if the operating environment is not peaceful. More often than not, the importance of peace is only appreciated when a war or violence breaks out. Besides the obvious losses that businesses incur, in the event of war, innocent blood is shed and there is wanton destruction of property. To say the least, peace is so precious that gambling with it is tantamount to digging one’s grave.

It is against that background that we must commend Mount Kenya University (MKU) for organizing a highly successful international conference on peace, security and social enterprise. Drawing delegates from various parts of the world, one message was very clear from this crucial meeting of great minds – that the world should not spare any effort or resources in the maintenance of peace.

Whereas it is a fact that man by his very nature competes with fellow man for resources and power, that should not be used as an excuse of disrupting peace. It is a sad reality that it takes a lot of time and colossal amounts of money to restore peace in countries that have been ravaged by war. Worse is the fact that there are individuals (and even nations) keen on capitalizing on disrupting peace so as to gain money and power. Most of these nations are the most powerful in the world but they do not give a hoot whether they are causing irreparable damage to the unfortunate nations that they cunningly lead to the destructive path of war, in so far as that will assist them to achieve their selfish ends.

In the same breath, the wealthy and powerful individuals easily incite the weak and poor to butcher one another as they also selfishly pursue their own goals. History is full of such examples. It is therefore the high time we learnt that by all means, peace must and should be safeguarded.

george.gichuki@biasharaleo.co.ke MANAGING EDITOR: George Gichuki EDITOR: Caroline Mwendwa MARKETING MANAGER: Emma Nuthu BUSINESS EXECUTIVES: George Marenya, Nelly Waeni, Petronila Nambuya SUBSCRIPTION & CIRCULATION: Joe Mwangi, Patrick Maina

DISTRIBUTION: NATION MARKETING AND PUBLISHING EDITORIAL CONTRIBUTORS: Dr. Kellen Kiambati, John Kageche, Carolyne Gathuru, Peter Muya, Caroline Karanja DESIGN AND LAYOUT: Mark Gikonyo ILLUSTRATIONS: Stanislaus Olonde

PUBLISHED BY: ASANTE MEDIA LTD. P.O BOX 25239-00100 NAIROBI TEL: 020- 2025755 Cell: 0733-966 270 Email: info@biasharaleo.co.ke Website: www.biasharaleo.co.ke BL is published monthly.

Views expressed in this publication are those of the authors and do not necessarily reflect the position of the publisher. ©2017 Asante Media Ltd. All rights reserved. Material may be reproduced only by prior arrangement and with due acknowledgement to BL Magazine.

MAY 2017

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More Than A Thousand Words Dr Mutakha Kangu, Governance and Constitutional Law expert: “We always talk of Kenya’s large population as a problem, but it isn’t. On the contrary, it is an advantage to the economy if well leveraged. It is a large pool of human resource and market for the local products. Let us give the local producers the first place in our consumption, by so doing, we will be creating more jobs and developing our country.”

Dr. Ann Adkins Assistant Professor of Education, Clarke University, USA: “A peaceful society begins with inculcating a culture of peace in young children. If accustomed to participate in peace building at a young age, children grow into peace loving adults, and therefore build a peaceful nation.

The journey to a peaceful nation, starts early.”

Hon Joseph Nkaisery, CS, Internal Security and Coordination of National government: “The creation of social enterprises through innovation, creativity and mentorship opportunities particularly by institutions of higher learning will provide a barricade against conflict and violence especially among young people. Social enterprise is a vital driving force in the growth of any economy.

Prof. Patricia Mbote Professor of Law, University of Nairobi: “There are provisions for various levels of intellectual property. Kenyans should be enlightened on how to protect their intellectual property however petty, so that innovators can enjoy ownership of the innovation, while their products benefit the other people and the economy at large.”

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MAY 2017

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MAY 2017

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Articulate Prize Letter Indeed what our local farmers lack is knowledge. Being an urban farmer, I know how much difference exposure from forums such as Farm Africa, can make in terms of cutting costs, and increasing yields.

Jennifer Mworia, Kiambu

I did not know that Kenyan Movers companies are internationally linked. This industry is growing at a very high speed considering that it was not until recently that Kenyans started seeking movers’ services.

Robert Kipchirchir, Eldoret

Kindly give the contacts of the Lemon Grass Kitchen. I’d consider taking those lessons for my own good, especially now that eating out is becoming expensive.

Enid, Nairobi

The conference idea by MKU, should be replicated by other universities. With concerted efforts, we will establish and maintain peace at all times, even during and after general elections.

Daniel Okumu, Kisumu

Biashara Leo will award a one year free subscription to the reader whose letter is chosen as the prize letter for a particular edition.(Existing subscribers will recieve a free annual renewal).

Your view on entrepreneurship and management are of importance to this magazine.

We encourage you to share them with thousands of our readers in Kenya and the entire East Africa.

Please send your views and opinions to: The Editor, Biashara Leo, P.O Box 25239-00100 Nairobi, Kenya E-mail: infoasantemedia.co.ke All letters must bear the writer’s name and address, although you may request your name to be withheld. Letter’s can be edited for clarity.

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MAY 2017

MAY 2017

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MAY AND SEPTEMBER 2017 INTAKES

DOCTORATE, MASTERS AND BACHELORS PROGRAMMES SCHOOL OF PURE AND APPLIED SCIENCES DEPARTMENT OF BIOLOGICAL SCIENCES Programme Duration, Fee and Mode of Study PhD in Entomology 3 years (Thesis only) Ksh 450,000@150,000 per year PhD in Ecology 3 years (Thesis only) Ksh 450,000@150,000 per year PhD in Zoology 3 years (Thesis only) Ksh 450,000@150,000 per year PhD in Conservation Biology 3 years (Thesis only) Ksh 450,000@150,000 per year PhD in Biochemistry 3 years (Thesis only) Ksh 450,000@150,000 per year PhD in Molecular Biology 3 years (Thesis only) Ksh 450,000@150,000 per year MSc. Biotechnology 4 Semesters Kshs. 59,550 Per Semester (Regular & Weekend) MSc. Ecology & Conservation MSc. Applied Entomology BSc. Biotechnology BSc. Applied Biology BSc. Environmental Science

4 Semesters Kshs. 59,550 Per Semester (Regular & Weekend) 4 Semesters Kshs. 59,550 Per Semester (Regular & Weekend) 8 Semesters (Regular, Weekend) Ksh 54,550 per semester 8 Semesters (Regular & Weekend) Kshs. 54, 550 Per Semester 8 Semesters (Regular & Weekend) Kshs. 54, 550 Per Semester

DEPARTMENT OF PHYSICAL & MATHEMATICAL SCIENCES PhD in Chemistry 3 years (Thesis only) Ksh 450,000@150,000 per year.

Options: - Analytical Chemistry - Organic Chemistry PhD in Natural Products 3 years Chemistry Ksh 450,000@150,000 per year.

(Thesis only) Master of Science in 4 semesters Chemistry Ksh. 59,550 per semester Master of Science in Statistics 4 semesters (Regular and Weekend Kshs 59,550 per semester.)

Bachelor of science in 8 semesters (full-time) Laboratory Sciences Kshs. 54,550 per semester Bachelor of Science in 8 semesters (full-time) Industrial Chemistry Kshs. 54,550 per semester Bachelor of Science in 8 semesters (full-time) Statistics Kshs. 59,550 per semester.

BSc in Actuarial Sciences 8 semesters (full-time) Kshs. 45,550 per semester.

DEPARTMENT OF ANIMAL HEALTH AND PRODUCTION Bachelor of Science in Animal 8 Semester (Full time/Weekend) Health and Production Ksh 59,550 Per Semester Bachelor of Science in Animal 8 Semester (Full time/Weekend) Science Ksh 54,550 Per Semester Bachelor of Science in 8 Semester (Full time/Weekend) Agriculture and Rural Ksh54,550 Per Semester Development

SCHOOL OF HOSPITALITY TRAVEL AND TOURISM MANAGEMENT DEPARTMENT OF HOSPITALITY MANAGEMENT MSC Hospitality Management 4 Semesters (Weekend and Regular) Kshs. 59,550 per Semester Bachelor of Hospitality 8 Semesters (Regular and Weekend) Management Khs. 54,550 per Semester DEPARTMENT OF TRAVEL AND TOURISM MANAGEMENT Bachelor of Science in Travel 8 Semesters (Regular/Evening) & Tourism Management Kshs. 54,550 per Semester

SCHOOL OF SOCIAL SCIENCES DEPARTMENT OF SOCIAL & DEVELOPMENT STUDIES PhD in Development Studies 3 years (Thesis only) Kshs. 200,000 Per year PhD in Sociology (Thesis) 3 years Ksh. 200,000 per year Master of Arts in 4 semesters Development Studies Kshs. 59,550. Per semester Digital Learning Ksh. 50,000 per semester Master of Arts in Monitoring 4 Semesters, Kshs. 59,550 per semester. and Evaluation Digital learning Kshs. 50,000 per semester Bachelor of Arts in 8 semesters Community Development Kshs. 45,550 per semester Digital learning Kshs. 40,000 per semester Bachelors of Social Work and 8 Semesters Administration Kshs. 45,550 Per semester Bachelor of Arts in 8 semesters Development Studies Kshs. 45,550 per semester Digital Learning Kshs. 40,000 per semester Bachelor of Arts in Sociology 8 semesters Kshs. 45,550 per semester Digital Learning Kshs. 40,000 per semester DEPARTMENT OF JOURNALISM AND MASS COMMUNICATION Master of Arts (M.A) in Journalism And 4 semesters Media Studies; Ksh. 64,550 per semester With Three OptionsDigital learning Journalism, Corporate Communication Ksh. 59,550 per semester and Media Management Master of Arts (M.A) in Film Studies 4 semesters Ksh. 64,550 per semester Bachelor of Arts if Film Studies and 8 semesters Animation Ksh. 54,550 per semester Digital learning Ksh. 40,000 per semester

BIASHARA LEO

MAY 2017

Bachelor of Arts in Mass Media and Communication; optionsElectronic Media, Print Media, Public Relations, and Advertising

8 semesters Ksh. 54,550 per semester

INSTITUTE OF SECURITY STUDIES, JUSTICE AND ETHICS Master of Arts in Governance 4 semesters (Regular/Evening) and Ethics Ksh.59,550 per semester Digital learning Ksh.50,000 per semester Master of Arts in Law 4 semesters (Regular/Evening) Enforcement and Justice Ksh.59,550 per semester Administration Digital learning Ksh.50,000 per semester Master of Arts in Security S 4 semesters (Regular/Evening) tudies and Criminology Ksh.59,550 per semester Digital learning Ksh.50,000 per semester Bachelor of Arts in Security Studies and 8 semesters (Regular) Criminology Ksh.45,550 per semester Digital learning Ksh.40,000 per semester Bachelor of Arts in Peace 8 semesters (Regular) Studies and Conflict Resolution Ksh.45,550 per semester Digital learning Ksh.40,000 per semester Bachelor of Arts in Public 8 semesters (Regular) Administration and Governance Ksh.45,550 per semester Digital learning Ksh.40,000 per semester Bachelor of Arts in Justice & Security 8 semesters (Regular) Studies Ksh.45,550 per semester DEPARTMENT OF PSYCHOLOGY PhD in Counseling Psychology (By 3 years Thesis Only) @Ksh180, 000 per year.

PhD in Counseling Psychology (By 6 semesters (Regular) Coursework, Examinations and Thesis) @ Ksh. 250,000 per year.

Master of Arts in Counseling Psychology Postgraduate Diploma in Counseling Psychology Bachelor of Counseling Psychology

8 semesters (weekends) @Ksh 250,000 per year 6 semesters (Regular and Evening) Ksh.65,000 per semester 3 semesters Ksh49,550 per semester 8 semesters (Regular/Evening/ Weekend) Ksh.54,000 per semester Digital learning 8 semester Ksh.42,000 per semester

DEPARTMENT OF LANGUAGES AND HUMANITIES PhD English Literature 3 years, Ksh. 200,000/- per year (Thesis only) PhD English Language and Linguistics 3 years, Ksh. 200,000/- per year (Thesis only) M.A in English Literature 4 Semesters Ksh. 65,000/- per semester M.A in English Language and Linguistics 4 Semesters Ksh. 65,000/- per semester PhD Kiswahili/ Geography/History/ 3 years, Ksh. 200,000/- per year Religious Studies (Thesis only) Master of Arts Kiswahili/Geography/ 4 Semesters History/ religious studies Ksh. 65,000/- per semester Master of Arts in International Relations 4 Semesters and Diplomacy Ksh. 65,000/- per semester

SCHOOL OF COMPUTING AND INFORMATICS DEPARTMENT OF INFORMATION TECHNOLOGY Master of Science in Information 4 semesters - Ksh59,550 per Technology semester (weekend) Master of Science in Cyber security 4 semesters - Ksh59,550 per semester (weekend) Bachelor of Science in Information 8 semesters (fulltime/evening) Technology Ksh. Ksh.45,550 per semester Digital Learning Ksh. 42,000 per Semester DEPARTMENT OF ENTERPRISE COMPUTING Bachelor of Business Information 8 semesters (fulltime/evening) Technology (BBIT) Ksh. Ksh.45,550 per semester Digital Learning Ksh. 42,000 per Semester DEPARTMENT OF INFORMATION SCIENCE AND KNOWLEDGE MANAGEMENT Master of Information Science 4 semesters Ksh. 69,550 per semester Bachelor of Science in Information 8 semesters (regular/evening) Science Ksh. Ksh.45,550 per semester Digital Learning Ksh. 42,000 per Semester

SCHOOL OF ENGINEERING, ENERGY AND THE BUILT ENVIRONMENT DEPARTMENT OF ENERGY AND ENVIRONMENTAL ENGINEERING Master of Science in Renewable 4 semesters Energy & Environmental Engineering Kshs59,550 per semester Bachelor of Science in Energy & 8 semesters Environmental Technology Kshs54,550 per semester Bachelor of Science in Petroleum 8 semesters.

Exploration & Production (BPEP) Kshs54,550 per semester Bachelor of Real Estate Management 8 semester, Kshs. 54,550 per semester DEPARTMENT OF ELECTRICAL AND ELECTRONIC ENGINEERING Bachelor of Technology in Computer 8 semesters, and Electronic Systems Kshs. 45,550 Regular

SCHOOL OF LAW Bachelor of Laws (LL.B)

KCSE mean grade of C+ (plus) with a minimum of B (plain) in English/ Kiswahili or Diploma in law from accredited institution. 8 semesters Ksh. 70,000 per semester (Regular and Evening)

SCHOOL OF BUSINESS AND ECONOMICS DEPARTMENT OF MANAGEMENT Doctor of Philosophy in Business 6 semesters Administration Ksh 200,000 Per Year Options (Course work and Thesis) • Entrepreneurship • and Small Business Management • Human Resource and Organizational Management • Marketing Management • Strategic Organizational Leadership and Management • Production and Operation Management • Accounting and Finance Master of Science in Procurement and 4 Semesters Supplies Management Ksh.59,550 per semester Digital Learning Ksh. 50,000 per semester Master of Arts in Public Administration 4 Semesters Ksh.59,550 per semester • Public Policy & Administration • Local Government Administration Digital Learning Ksh. 50,000 per semester MSc. Human Resource Development 4 semesters Ksh.59,550 per Semester

MSc. Marketing

MSc. Entrepreneurship

Digital Learning 4 semesters Ksh. 50,000 per semester 4 semesters Ksh.65,000 per semester Digital Learning 4 semesters Ksh. 50,000 per semester 4 semesters Ksh.59,55 per semester

MSc. Office Administration And Management

Digital learning 4 semesterKsh.50,000 per semester 4 semesters Ksh.59,55 per semester

MSc. Science In Project Planning And Management

Digital learning 4 semesterKsh.50,000 per semester 4 semesters Ksh.59,000 per semester

Master of Business Administration Options: • Entrepreneurship • and Small Business • Human Resource and Organizational Management • Marketing Management • Strategic Organizational Leadership and Management • Production and Operation Management Post-Graduate Diploma in project planning and Management Bachelor of Arts in Public Administration

Bachelor of Office Administration and Management Bachelor of Business Management Options: • Marketing • Human Resource Entrepreneurship • International Business • Supplies and procurement

Digital learning 4 semesters Ksh.50,000 per semester 4 semesters Ksh 59,550 per semester Digital learning Ksh. 50,000 per semester

2 Semesters Ksh.50,000 per semester 8 Semesters Ksh. 54,550 per semester Digital learning Ksh. 40,000 per semester 8 Semesters Ksh. 54,550 per semester Digital learning Ksh. 40,000 per semester 8 Semesters Ksh. 45,550 per semester Digital learning Ksh. 40,000 per semester

DEPARTMENT OF ECONOMICS Master of Arts In Economics 4 semesters Ksh.59,550 per semester Bachelor of Science in Economics and 8 semesters Finance Ksh.45,550 per semester Bachelor of Science in Economics Bachelor of Science in Economics and Statistics Bachelor of Science in Finance and Statistics

8 semesters Ksh.45,550 per semester 8 semesters Ksh.45,550 per semester 8 semesters Ksh.45,550 per semester

DEPARTMENT OF ACCOUNTING AND FINANCE Master of Science in Finance 4 semesters Ksh 59,550 per semester

Master of Science in Accounting

Bachelor of Commerce Options • Accounting and Finance • Banking • Human Resource Management • Marketing Management • Strategic Management • Production and Operations

Digital learning Ksh. 50,000 per semester 4 semesters Ksh. 59,550 per semester Digital learning Ksh. 50,000 per semester 8 Semesters Ksh. 45,550 per semester Digital learning Ksh. 40,000 per semester

DIPLOMA AND CERTIFICATE PROGRAMMES - MAY AND SEPTEMBER 2017 INTAKES SCHOOL OF PURE AND APPLIED SCIENCES DEPARTMENT OF PHYSICAL & MATHEMATICAL SCIENCES Programme Minimum Requirements Duration, Fee and Mode of Study Diploma in Science KCSE certificate with a 7 Trimesters Laboratory minimum of 29,550 per trimester Technology C (plain) and grade C-(minus) in Chemistry, Biology or relevant certificate DEPARTMENT OF ANIMAL HEALTH AND PRODUCTION Diploma in Animal KCSE mean grade of C (Plain) 9 Trimester Health and with at least C (Plain) in Biology (Regular) Production or Biological Sciences, C- (Minus) Ksh 34,550 Per Trimester in Chemistry or Physical Sciences, C- (Minus) in Mathematics or Agriculture Or Holders of Certificate with at least a credit pass in Animal health / Agriculture from recognized institute Certificate in KCSE mean grade of C- (Minus) 6 Trimesters Animal Health and with C- (Minus) in Biology/ (Regular) Production 29,550 Per Biological sciences Or Trimester Equivalent qualification recognized by University Senate Certificate At least a Certificate Pass in (Short course) in Artificial Animal Health from an institution April, August Insemination recognized by Kenya Veterinary and December 4 Board Weeks 33,600/= per session

SCHOOL OF HOSPITALITY TRAVEL AND TOURISM MANAGEMENT DEPARTMENT OF HOSPITALITY MANAGEMENT Minimum requirement KCSE 7 Trimesters mean grade of C(Regular) Or Certificate in Hospitality Kshs. 32,550 per Management from a recognized Trimester institution Certificate in Food KCSE mean grade D+ (Plus) 5 Trimesters Production (Regular) Kshs. 24,550 per trimester.

Certificate in Food KCSE mean grade D+ (Plus) 5 Trimesters and Beverages (Regular) Kshs. 24,550 per trimester.

Diploma in Hospitality Management

DEPARTMENT OF TRAVEL AND TOURISM MANAGEMENT Diploma in KCSE Mean grade of C- Or 7 Trimesters Travel & Tourism Certificate in Tourism ((Regular/ Management Management from a recognized Evening) institution Kshs. 32,550 per Trimester Certificate in KCSE mean grade D+ (Plus) 5 Trimesters Travel & Tourism (Regular/ Operations Evening) Kshs. 24,550 per Trimester

Certificate in Public Relations and Diplomacy

INSTITUTE OF SECURITY STUDIES, JUSTICE AND ETHICS Diploma in County Administration and Governance

KCSE mean grade C- (minus) or Certificate in Relevant field

Diploma in Security Studies and Criminology

KCSE mean grade C- (minus) or Certificate in Relevant field

7 trimesters Ksh24,550 per trimester Digital Learning Ksh. 24,000 per semester

Certificate in Security Studies and Criminology

KCSE mean grade D+ (Plus)

5 trimesters Ksh20,550 per trimester

7 trimesters (Fulltime) Ksh.24,550 per trimester Digital learning Ksh.24,000 per trimester

DEPARTMENT OF JOURNALISM AND MASS COMMUNICATION Diploma in KCSE mean grade C- (minus) 7 trimesters Journalism or Certificate in Relevant field Ksh. 29,550 per and Mass trimester Communication Diploma in Film KCSE mean grade C- (minus) 7 trimesters Studies or Certificate in Relevant field Ksh. 34,550 per trimester Diploma in KCSE mean grade C- (minus) 7 trimesters Animation or Certificate in Relevant field Ksh.34,550 per trimester Diploma in Public Relations and Diplomacy

KCSE mean grade C- (minus) or Certificate in Relevant field

7 trimesters Ksh. 24,550 per trimester

Certificate in Journalism and Mass Communication

KCSE mean grade D+ (Plus)

5 trimesters Ksh. 20,550 per trimester

5 trimesters Ksh. 24,550 per trimester

DEPARTMENT OF PSYCHOLOGY MINIMUM DURATION & TUITION REQUIREMENTS FEES Diploma in Counseling KCSE mean grade C7 trimesters Ksh.24, 550 Psychology (minus) per trimester. (Regular/ OR A Certificate in Evening and weekend) Relevant field PROGRAMMES

SCHOOL OF COMPUTING AND INFORMATICS DEPARTMENT OF INFORMATION TECHNOLOGY Diploma in Information KCSE mean grade C7 trimesters (Regular) Technology (minus) Ksh.24,550 per trimester or Certificate in Relevant field Certificate in KCSE mean grade D+ 5 trimester Ksh.20,550 Information (Plus)) (Regular) Technology DEPARTMENT OF ENTERPRISE COMPUTING Diploma in Business KCSE mean grade C7 trimesters Ksh.24,550 Information (minus) per trimester.(Regular) Technology or Certificate in Relevant field Certificate in KCSE mean grade D+ 5 trimester Ksh.20,550 Business Information (Plus)) (Regular) Technology DEPARTMENT OF INFORMATION SCIENCE AND KNOWLEDGE MANAGEMENT Diploma in KCSE mean grade C7 trimesters (Regular ) Information Science (minus) Ksh.24, 550 per trimester. or Certificate in Relevant field Diploma in Archives KCSE mean grade C7 trimesters .(Regular) and Records (minus) and Digital Learning Management or Certificate in Ksh.24,550 per trimester Relevant field Certificate in KCSE mean grade D+ 5 trimester (Regular) Information Science (Plus)) Ksh.20,550

SCHOOL OF ENGINEERING, ENERGY AND THE BUILT ENVIRONMENT DEPARTMENT OF ELECTRICAL AND ELECTRONIC ENGINEERING Diploma in Electrical KCSE mean grade of C 9 trimesters (Regular) and Electronic plain with C- (Minus) Kshs. 29,550 Engineering (DEE) in Mathematics and English/Kiswahili Diploma in Medical KCSE mean grade of C 9 trimesters (Regular) Engineering (DME) plain with C- (Minus) Kshs. 29,550 in Mathematics and English/Kiswahili

SCHOOL OF LAW Diploma in Law

SCHOOL OF SOCIAL SCIENCES DEPARTMENT OF SOCIAL & DEVELOPMENT STUDIES Diploma in KCSE mean grade C- (minus) Or 7 Trimesters Community Certificate in a relevant field Kshs. 24,550 per Development and trimester Social Work Digital Learning Ksh. 24,000 per trimester Certificate in KCSE mean grade D+ (Plus) 5 Trimesters Community Kshs. 20,550 Development and Digital Learning Social Work Kshs. 24,000 per trimester

KCSE mean grade D+ (Plus)

KCSE mean grade of C plain or its equivalent with a minimum grade C+ (plus) in English or at least a credit pass in certificate in law from a recognized institution.

4 trimesters (Regular) Ksh. 49,000 per trimester

SCHOOL OF EDUCATION DEPARTMENT OF EDUCATIONAL MANAGEMENT AND CURRICULUM STUDIES Diploma in Education KCSE mean grade 7 trimesters Ksh. 32,550 (Science) of C+ (plus) and C+ per trimester (plus) in two subjects of specialization.

Diploma in KCSE mean grade 7 trimesters Ksh. 29,550 Education(Arts) of C+ (plus) and C+ per trimester (plus) in two subjects of specialization DEPARTMENT OF SPECIAL NEEDS EDUCATION Diploma in Special KCSE mean grade of C 7 trimesters Ksh. 27,000 Needs Education (plain) and C (plain) per trimester in two subjects of specialization DEPARTMENT OF EARLY CHILDHOOD STUDIES Diploma in Education KCSE mean grade of 7 trimesters Ksh. 24,550 (Early Childhood C (plain) per trimester Studies) Certificate in KCSE mean grade of 5 trimesters Ksh. 20,550 Education(Early C- (Minus) per trimester Childhood Studies)

SCHOOL OF BUSINESS AND ECONOMICS DEPARTMENT OF MANAGEMENT KCSE mean grade C7 trimesters Ksh. 24,550 (minus) per trimester. Digital Or Certificate in learning- Ksh.24,000 per Relevant field trimester Diploma in Supplies KCSE mean grade C7 trimesters Ksh. 24,550 and Procurement (minus) per trimester. Digital Management (DSPM) Or Certificate in learning- Ksh.24,000 per Relevant field trimester Diploma in Project KCSE mean grade C7 trimesters Ksh. 24,550 Management (minus) per trimester. Digital or Certificate in learning- Ksh.24,000 per Relevant field trimester Diploma in Marketing KCSE mean grade C7 trimesters Ksh. 24,550 Management (minus) per trimester. Digital or Certificate in learning- Ksh.24,000 per Relevant field trimester Diploma Human KCSE mean grade C7 trimesters Ksh. 24,550 Resource Management (minus) per trimester. Digital learning- Ksh.24,000 per or Certificate in Relevant field trimester Diploma in Business KCSE mean grade C7 trimesters Ksh. 24,550 Management per trimester. Digital (minus) or Certificate in learning- Ksh.24,000 per Relevant field trimester Diploma in Entrepreneurship

Certificate in Entrepreneurship

KCSE mean grade D+ (plus)

Certificate in Supplies and Procurement Management (DSPM)

KCSE mean grade D+ (plus)

Certificate in Project Management

KCSE mean grade D+ (plus)

Certificate a in Marketing Management

KCSE mean grade D+ (plus)

Certificate in 0Human Resource Management

KCSE mean grade D+ (plus)

Certificate in Business Management

KCSE mean grade D+ (plus)

5 trimesters Ks. 24,550 per trimester. Digital learning Ksh. 24,000 per trimester 5 trimesters Ks. 24,550 per trimester. Digital learning Ksh. 24,000 per trimester 5 trimesters Ks. 24,550 per trimester. Digital learning Ksh. 24,000 per trimester 5 trimesters Ks. 24,550 per trimester. Digital learning Ksh. 24,000 per trimester 5 trimesters Ks. 24,550 per trimester. Digital learning Ksh. 24,000 per trimester 5 trimesters Ks. 24,550 per trimester. Digital learning Ksh. 24,000 per trimester

DEPARTMENT OF ACCOUNTING AND FINANCE Diploma in Financial KCSE mean grade C7 trimesters Ksh. 24,550 Science (minus) per trimester. Digital or Certificate in learning- Ksh.24,000 per Relevant field trimester Diploma in Accounting KCSE mean grade C7 trimesters Ksh. 24,550 (minus) per trimester. Digital or Certificate in learning- Ksh.24,000 per Relevant field trimester Diploma in Banking KCSE mean grade C7 trimesters Ksh. 24,550 And Finance (minus) per trimester. Digital or Certificate in learning - Ksh.24,000 Relevant field per trimester Diploma in Micro – KCSE mean grade C7 trimesters Ksh.24,550 Finance (minus) per trimester or Certificate in Relevant field Diploma in Risk 7 trimesters Ksh.24,550 KCSE mean grade Cper trimester Management and (minus) Insurance or Certificate in Relevant field Certificate in Financial KCSE mean grade D+ 5 trimesters Ksh. 24,550 Science (plus) per trimester Digital learning 24,000 per trimester Certificate in KCSE mean grade D+ 5 trimesters Ksh. 24,550 Accounting (plus) per trimester Digital learning 24,000 per trimester Certificate in Banking KCSE mean grade D+ 5 trimesters Ksh. 24,550 And Finance (plus) per trimester Digital learning 24,000 per trimester Certificate in Risk KCSE mean grade D+ 5 trimesters Ksh.24,550 per trimester Management and (plus) Insurance MINIMUM ENTRY REQUIREMENTS: PhD Programme: A Master’s degree in relevant area of specialization.

Masters Programme: At least a Bachelors degree with a minimum of second class Honors – Upper Division from a recognized University or equivalent recognized by Mount Kenya University senate OR Bachelors Degree with at least Second class Honors lower division and a minimum of two years’ work experience.

Post-Graduate Diploma programmes: At least a Bachelors degree from a recognized University or equivalent qualification recognized by Mount Kenya University senate Bachelors Programmes: At least a KCSE mean grade C+ (plus) or its equivalent OR Diploma from KNEC or Equivalent qualification from a recognized institution or Kindly note that different courses require relevant cluster subjects qualification for admission.

For more information visit www.mku.ac.ke.

Applications; Apply to the Registrar, Academic Affairs enclosing copies of relevant academic/ professional certificates. Application fee of Kshs. 1,000 for undergraduate and kshs.2, 000 for post graduate to be deposited at either; Equity Bank – 009029243506 NIC Bank – 21200008796 Standard Chartered Bank – 0102049817400

GT Bank - 2014200002 Family Bank - 005000019336 Kenya Commercial Bank - 1121032222

MAIN CAMPUS General Kago Rd PO BOX 342-01000 Thika Tel: +245 067 2820 000 Cell: +254 720 790 796 Website: www.mku.ac.ke Email: info@mku.ac.ke MOMBASA CAMPUS MKU PLAZA, Nkuruma Road, P.O BOX 42702-80100, Mombasa TEL: 0208002096 Email: coastcampus@mku.co.ke

KITALE CAMPUS PO BOX 18969-30200, Kitale Tel: 0724 204 342 Email: kitalecampus@mku.ac.ke

KAKAMEGA CAMPUS P.O BOX 553-50100 Kakamega Tel: 0724178506 Email: kakamegacampus@mku.ac.ke

NKUBU/MERU CAMPUS Majani Tea Sacco Plaza PO BOX 511 Nkubu- Meru Tel: +254 0642629462 Email: nkubucampus.ac.ke KISUMU ODEL CENTRE Reliance building, Along Oginga Odinga Rd PO BOX 392-40100 Kisumu Tel: 057 2029967/0724 204 193 Marketing mobile: 0737580998 Email: Kisumu@mku.ac.ke KERICHO CENTRE Sinendet Plaza PO BOX 1902-20200 Kericho Email: kericho@mku.ac.ke

KISII CAMPUS Gesonso (former Imperial School) PO BOX 4441 Kisii Tel: 0707891889

ELDORET CAMPUS PO BOX 2591-30100, Eldoret Tel: 0724 426 327, 0733 361 061.

Email:eldoretcenter@mku.ac.ke.

DIGITAL VARSITY Tel: 0702 041 042 Cell: 0724 205 417 Email:distance.learning@mku.ac.ke pgsvirtual@mku.ac.ke, virtual@mku.ac.ke Website: www.mkuvirtual.com NAKURU CAMPUS- GREAT RIFT PLAZA Opp. Valley Hospital, Kipchoge Keino Road PO BOX 17273-20100 Nakuru Tel: +254 202338144 Cell: 0705669811 / 0789729561 Email: nkrcampus@mku.ac.ke NAIROBI CAMPUS PO BOX 13495 00100 GPO Nairobi Tel: 0729256979, 0734 667734 Email: nairobicenter@mku.ac.ke

MAY 2017

MALINDI CENTER Noor Plaza 2nd floor, Malindi Tel: 0703 747 130 Email: malindi@mku.ac.ke

NYERI CENTRE MKU PLAZA Tel: +254 723 356 247 Email: nyeri@mku.ac.ke

BIASHARA LEO

CORPORATE BRIEFS

FARM CONCERN INTERNATIONAL NURTURES THE GROWTH OF AGRO-PASTORALISTS

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arm Concern International (FCI) is a highly specialized Africawide agri-market development agency and a leading strategic direct implementing partner in Africa with a focus on profitable smallholder commercialization, value chain analysis, market access, trade development and private sector alliances for sustainable rural economic growth.

Tearfund UK has funded FCI to implement agro-pastoralist commercialization and market linkages for 4,161 agro pastoralist households organized into eleven commercial villages in Marsabit, Kenya.

The agro-pastoralists have recorded sales worth USD 2,319,127 from 2015 – 2016 through the commercial village model [CVM]. The trade was realized from the sale of 903 metric tonnes of green grams, 128,840 litres of camel milk, 988 cattle, 23,797 goats and sheep as well as other staples. The market-led programme has triggered agricultural investments through catalyzing agro-pastoralists profitable commercialization, aggregation, market access, innovation dissemination and village savings for financial inclusion.

Agro-pastoralist commercialization and market development is an intense process which demands strategic business partnership with the private sector, government, farmer organizations and development partners.

FCI has developed business partnership

Mumbi Kimathi, FCI Strategy and innovation director addressing participants during the forum.

with thirty three wholesale buyers, eleven commercial villages, twenty six commercial producer groups, twenty six integrated implementing partners, financial institutions and input suppliers. The agropastoralist market-led programme has increased the acreage under green gram production from seventy seven to nine hundred and eight acres. The intervention is transforming the economic landscape for 1,801 women [43%] and 824 youth [20%] through competitive participation in agro-enterprises and value chain-wide employment opportunities. FCI through its Food Basket Model has created an enabling farm-level crop and livestock diversification programme for food and nutrition security as well as climate resilience. The integrated

OGILVY AFRICA NAMED BEST AGENCY IN THE CONTINENT

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gilvy Africa has been named the continent’s agency and network of the year after winning 39 awards in the African Cristals Festival 2017. The Nairobi-headquartered agency won seven out of a possible twelve Grand Prix awards, including the Festival Grand Prix, the Leadership Grand Prix, the Media Grand Prix, Digital Grand Prix and the Mobile Grand Prix. It also bagged 21 Gold, 8 silver and 3 bronze awards, to emerge top of the table in the continental showcase.

“The Most Eligible Bachelor”, a

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global campaign to raise funds for the conservation of the Northern White rhino species, was the most remarkable win with 30 awards during the festival that rewards the best advertising campaigns created and broadcasted over the African continent, on any media. The Northern White rhino is critically endangered, with only 3 of its kind left in the world, living at the OlPejeta Conservancy. “Madaraka Day”, a campaign for Airtel networks won seven awards including three gold, while King Condoms won two silver awards.

“This is a very proud occasion for Ogilvy

ASAL initiative that focuses on livestock and crop commercialization, markets and trade development in Northern Kenya has benefited 17,443 individuals.

FCI aims at sharing statistical evidence based on end-term data that has been gathered through action research embedded into the implementation and end of project evaluationfor the anchor value chains including green grams, goats, sheep, cattle and camel milk. It aims at convening local, regional and international private sector partners, agro-pastoralists, buyers, county and national government representatives, research organizations, universities and development organizations for strategic scaling up of arid and semiarid value chains’ opportunities in Kenya.

Africa. The awards are a testament that with deep insights, persistence and quality collaborative work, we have what it takes produce some of the most remarkable work in the continent.” Said Nadja BellanWhite, CEO, OgilvyAfrica.

In addition, Mathieu Plassard, the managing director, said: “It is humbling that this recognition comes just weeks after Ogilvy Africa won the Africa Sabre for its public relations work on Coke Studio, adding to an already colourful cabinet of medals won over the last two years. We are indeed telling Africa’s brands story, the African way”. Mr. Plassard added that Ogilvy Africa would also enter some of its work to a roster of global awards scheduled for this year, with a view to demonstrating the impressive integrated communications talent pool domiciled at the agency.

CORPORATE BRIEFS

SAFARICOM ROLL OUTS OUT M-PESA 1 TAP

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afaricom has rolled out a new payment proposition, dubbed M-Pesa 1 Tap following a successful pilot which started June last year. The M-Pesa 1 Tap rollout will first be done in Nakuru County before spreading to the rest of the country.

It will reduce the number of steps required by customers to make a Lipa Na M-Pesa payment from eight to two - adding speed and convenience. Customers will have a choice to either use a near field communication (NFC) enabled card, wristband or phone sticker.

To make payments, they will tap their cards, wristbands or stickers on an M-Pesa 1 Tap point of sale terminal (POS), and enter their PIN on their phone to confirm and complete the payment.

“M-Pesa 1 Tap marks the next phase in our journey to give customers innovations that further enhance the speed, safety and convenience of the service. We have seen the number of payments on M-Pesa now grow to the equivalent of person-to-

person transactions, a testament that Lipa Na M-Pesa has indeed become an integral part of our customers’ day-to-day lives,” said Bob Collymore, CEO, Safaricom.

M-Pesa customers will also benefit from a higher level of privacy as they can now complete Lipa Na M-Pesa payments without having to show confirmation messages as has been the case in some instances. In addition, the solution will reduce errors that occur when payments are made to unintended till numbers.

In line with the current practice, customers will continue making Lipa Na M-Pesa’s ‘buy goods’ transactions with M-Pesa 1 Tap at no cost, with the exception of petrol station tariffs, betting and pay bills.

Retailers purchasing from wholesalers will also maintain their current buy goods distributor tariff.

Merchants across the country will be issued with M-Pesa 1 tap point of Sale terminals in line with the phased roll out. In addition, both customers and merchants will be issued with M-Pesa 1 Tap payment devices and two subsequent replacements will be free.

Director, regional operations and sales Safaricom, Steve Okeyo with Seline Opondo Safaricom Nakuru retail centre manager explain how to use the M-Pesa 1 tap card to Beatrice Chepkemoi during the launch of the card in Nakuru.

The launch of M-Pesa 1 Tap comes on the heels of the recent reduction by half of Lipa Na M-Pesa ‘buy goods’ merchant tariffs. Safaricom also announced the expansion of M-Pesa Kadogo to Lipa na M-Pesa ‘buy goods’, eliminating merchant charges for transactions of Kshs. 200 and below.

CORPORATE BRIEFS

GOVERNMENT OF RWANDA DEDICATED TO PROMOTE ITS MOVE TO A CASHLESS ECONOMY Mastercard reinforced as technology partner in moving Rwanda towards a cashless society in line with the country’s vision 2020

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he Government of Rwanda and Mastercard have reaffirmed their shared commitment to the development of strong digital platforms to meet the needs of the country’s citizens and work towards Rwanda’s goal of promoting a cashless society.

According to FinScope 2016, 68 percent of adults in Rwanda have (or use) formal financial products and services. The partnership agreement signed between Mastercard and the Rwanda Development Board at the World Economic Forum on Africa in Kigali in 2016 will have a significant impact on this number. Through the partnership, a great momentum has been achieved, resulting in the agreement with Mastercard being renewed to incorporate the digitization of Rwanda social subsides under one inflows and outflows digitization project.

“Named SIKASHI, the project is focused on digitising numerous state services to improve the efficiency and transparency of public services and ultimately promote the move to a cashless society – a critical pillar of Rwanda’s broader Vision 2020 to create a knowledge-based economy in a world beyond cash,” says Clare Akamanzi, CEO of Rwanda Development Board and cabinet member.

Key focus areas of SIKASHI include school fees payment digitisation, providing an online payment gateway services for Rwanda Online, contributing to the creation of an interoperable mobile banking platform, addressing the national healthcare claims disbursement and payment processes and contributing to the effective management of foreign exchange process flow.

“In the last one year, the Rwandan government and Mastercard have leveraged on each other’s strengths to deliver on a number of these goals, particularly in the payments, disbursements and subsidies of health, pensions and education. To that

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MasterCard’s Raghu Malhotra with Minister Gatare.

end, centralized and digital platforms for the three areas have been built and tested and will be rolled out for the widespread benefit of our citizens,” says Daniel Monehin, division President for Sub-Saharan Africa and international markets lead for financiaI inclusion, Mastercard.

This covers a centralised digital platform to drive efficiency, access to and payments of the annual subscription fee of the communal healthcare system ‘Mutuellede Santé’, a mandatory pension scheme targeting workers and those in the informal sector and the payment of school fees for all primary and secondary public schools. It is also a digital ecosystem for all the government’s social inflows and outflows ,with emphasis on the Vision 2020 ‘Umurenge’ Programme for poverty eradication, the Genocide Survivors disbursement, and agriculture subsidies programmes.

The healthcare and pension programmes conceptualised as part of SIKASHI pilot will be the first to be rolled out to the country’s citizens and it is set to begin this year.

This will be followed by the introduction of the long term savings scheme project, which Mastercard and social enterprise firm Pinbox Solutions partnered to provide technical assistance for Rwanda’s ministry of finance and economic planning. The

scheme will be demonstrated at the first global micro-pension inclusion summit in Rwanda in July.

Online Payment Gateway and Mobile Payments have been key contributors to making government services more accessible to the country’s citizens through the Rwanda Online service named Irembo.

It is the face of all current and future solutions and provides a one-stop- shop for the Rwandan government and the country’s citizens to seamlessly apply and pay for government services. In addition, Irembo provides 50 e-services from ten government agencies to citizens and allows them to pay using debit, credit or prepaid cards and mobile money services. Building on the success of Irembo so far, Mastercard and Rwanda Online have strengthened their relationship through the signing of a twoyear strategic partnership agreement to innovate around all citizen-to- government (C2G) and business-to- government (B2G) payments.

“Rwanda is a vital market in East Africa and the snowballing positive impact of the solutions implemented through SIKASHI have illustrated the power of groundbreaking digital systems and collaboration between the government and the private sector to drive the financial inclusion of all citizens,” concludes Monehin.

CORPORATE BRIEFS

Equity Group COO Bhartesh Shah (L) receives the Chief Executive of the Year Award on behalf of Dr. James Mwangi, from ICT Cabinet Secretary Joe Mucheru (C) and Think Business CEO Ochieng Oloo (R). Equity Bank was crowned Overall Best Bank in Kenya for the 2nd consecutive year and Best Bank in Tier 1 for the 5th year at the Think Business Banking Awards 2017.

EQUITY BANK SCOOPS 19 AWARDS IN A ROW

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hink Business Banking Awards 2017, places Equity Bank on a Pedestal Equity Bank once again emerged as the top Overall Bank at the Think Business Banking Awards 2017, stamping its authority as a market leader in the financial space in Kenya and the East African Region.

The lender scooped a total of 19 awards out of a possible 24 entries it had submitted.

Equity shrugged off strong competition to beat other lenders by scooping the first position in 13 other categories; Best Bank in Mortgage Finance, Best Bank in Agency Banking, Best Bank in Retail Banking, Best Bank in Product Innovation, Best Bank in Trade Financing, Best Bank with the Lowest Charges to Individuals, Best Bank in Sustainable Corporate Social Responsibility, Best Commercial Bank in Micro Finance, Best Bank in Agribusiness & Livestock Finance, Outstanding Young Banker of the Year - GakiiMwongera, Best Bank in Integrated Digital Marketing and Best Bank in Tier one category.

Equity Bank Managing Director and CEO also won the Chief Executive of the Year. Commenting on the awards, Dr. James Mwangi said the win highlights the Bank’s focus of providing the best and efficient financial services to its customers.

“I am humbled by this recognition which further validates our strategy and pursuit

Equity Bank's chief officer of corporate and SME Banking, Rohit Singh (L) and Finserve marketing manager Irene Gitonga (R) receive the Best Bank in Product Innovation Award from Craft Silicon’s CEO Kamal Budhabhatti.

Equity Bank won Best Bank in Product Innovation for its new payment platform EazzyPay

of financial inclusion while giving our customers freedom, choice and control,” Dr. Mwangi said.

“We aim to retain this victory in the future and translate this success into a deeper emotional connection with our customers by giving them freedom, choice and control with our product and service offering” Dr Mwangi added.

Equity also emerged second in the following categories; Best Bank in Product Marketing, Most Customer Centric Bank, Best Bank in Internet Banking and Best Bank in Corporate Banking. Equity was the

second runners-up in Best Bank in Mobile Banking category.

These awards comes days after the bank was also recognised as the world’s 5th most socially devoted financial brand and the Best in Kenya by Social Bakers, the world’s leading social media analytics provider.

The Think Business Banking Awards 2017 is in its 12th year and is aimed at encouraging innovation, prudence and stability, in the banking sector by recognizing, awarding and celebrating exemplary performance in the sector.

MAY 2017

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CORPORATE BRIEFS

THE DAWN OF THE FOURTH INDUSTRIAL REVOLUTION IN AFRICA IS HERE

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frica is standing before a small window of opportunity to grow future leaders equipped to take on a new era of industry. It will be our ability to come together and develop those leaders that will determine whether the continent succeeds or fails. The tough reality is that radical disruption to skills requirements in the workplace is headed Africa’s way as she edges towards the next industrial revolution.

Research presented at the World Economic Forum on Africa recently shows that in South Africa alone, 39% of the core skills required across industries will be completely different in three years' time. Yet, the forum also brought forward unsettling statistics which paint a picture of a continent that is struggling to develop skills for today - never mind the ones for tomorrow. Indeed, WEF's human capital Index reveals that sub-Saharan Africa currently captures just 55% of its human capital potential, when compared with the global average of 65%.

On the one hand, employers say an under-skilled workforce is holding their businesses back - as many as 41% of all firms in Tanzania and 30% in Kenya. But on the other hand, just 50% of Africa's schoolage children are enrolled in secondary school, and a startlingly low 7% in tertiary education. The gap between the skills required and the ones administered is greater in Africa than in any other region in the world. Radical intervention is therefore needed.

It's simple. If Africa fails to adequately

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improve the skills of her youth, she will be guilty of throwing away the future of an entire continent.

The opportunity The good news is that every challenge also presents an opportunity. While the next industrial revolution will bring a massive wave of disruption, it also brings the promise of completely new job descriptions which will call on dynamic and exciting skills sets.

According to findings from WEF, our continent will need young individuals who can combine digital and stem skills with more traditional skill sets. Africa is going to need significant numbers ofdigitalmechanical engineers and business operations data analysts, to name a few.

How do we get there?

The million dollar question is: how do we grasp this golden opportunity to see our continent transition into a new industrial era? The answer lies in the stories that belong to remarkable young individuals like Ken Gitonga ( the administrator of the Samsung Engineering Academy in Nairobi).

The academy, which was launched in Nairobi in 2014, revolutionizes traditional education by providing technical and vocational training for school learners, tertiary students and employed youth.

As will become evident from Ken's story, the strength of the academy lies in its

ability to provide talented individuals like him, not only with the skills they need to succeed, but also to invest back into their communities.

Ken has been making things from as young as six years old, when he built a toy car out of wire and wood. He would use sticks, wires and just about any empty household item he could find, to create his own’gadgets. As he didn't have a lot of money growing up, these gadgets were his toys.

While Ken was given the opportunity to develop his considerable skills by attending the academy himself, he now uses his talents to help grow the skills of the next generation.

His analytical mind serves him well in this pursuit. Through his planning and logistical genius, he has created a bespoke work station programme that enables students to effectively learn about a particular electronic device. Every day, Ken prepares the course materials needed by the aacademy's lecturers and helps deliver course content when needed.

His is just one of the many stories currently unfolding as Samsung continues to drive the development of skills-for-employability amongst the youth in Ethiopia, South Africa, Ghana, Kenya and Nigeria through the Engineering Academy Initiative.

CORPORATE BRIEFS

SKF LAUNCHES NEW ANTICOUNTERFEIT APP IN KENYA

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KF Kenya has launched a new mobile application, '2authenticate', which will enable consumers to detect counterfeit bearing parts in the Kenyan market. The mobile application will be able to scan a special Data Matrix Code, which is similar to a QR code, on all genuine SKF parts.

SKF is a Swedish company and leading worldwide manufacturer and supplier of bearings and other industrial products.

The Kenyan subsidiary has been chosen to run the pilot anti-counterfeit programme in a bid to ensure consumers get authentic bearings for their equipment. All single pack bearing boxes imported via the official SKF AB subsidiary in Kenya, SKF Kenya Limited, will have a special Data Matrix Code, which can be scanned by a smart phone camera using the new Android app, 2authenticate.

Harris Kariuki, SKF Kenya Ltd. managing director noted that the move was driven by increased counterfeit products in the market, especially from China and India, which have seen consumers in the market count major losses. "The Kenya office was picked to run the pilot programme due to increased counterfeit products in the market that have seen both retail and corporate customers record major

losses. The increased mobile and internet penetration in Kenya played a major role in the market being picked to drive this new initiative," said Mr Kariuki. "We have already started working with our distributors and this launch is to ensure the whole market is empowered to identify genuine parts,� he added.

Mr Kariuki said the company would roll out an education and awareness campaign to sensitize the market on genuine parts and the cost of counterfeits in the long run.

SKF Kenya is working in partnership with the Anti-Counterfeit Agency to authenticate products in the market and protect Kenyans from the counterfeit ones.

"The government cannot fight the counterfeit battle by itself, we are working in partnership with manufacturers such as SKF to protect intellectual property," said the acting executive director, of the AntiCounterfeit Agency, Dr John Akoten.

Last year SKF Kenya, which serves nine markets in the region from its Nairobi office, run six raids in Uganda and Kenya.

In Kenya, goods worth over Kshs 10million were netted in the raids that were carried out in partnership with the Anti-Counterfeit Agency.

Bearings are a major part for rotating equipment ranging that are used in cars

and large industrial machinery.

The 2authenticate app gives instant feedback after the code is scanned or clear instructions on how to photograph the product if there is no code on the box, especially for parts that entered the market before the launch of the new technology.

Then it automatically submits a request to SKF headquarters where dedicated experts review the information, authenticate the product and gives feedback.

CORPORATE BRIEFS

MKU’S INTERNATIONAL CONFERENCE ON PEACE, SECURITY AND SOCIAL ENTERPRISE It’s time we reflected on the cost of war

By Caroline Mwendwa

“

If you doubt the cost of war, ask the Congolese and the Rwandese … in fact go no further than our own Pokot and Turkana,” said a candid Professor PLO Lumumba during the International Conference on Peace, Security and Social Enterprise, hosted recently by Mount Kenya University ( MKU).

The conference that put into perspective, various contexts of destructed peace, and the aftermath of war as well as assembling views of delegates from different countries took place for three days. Its main agenda being to sensitise Kenyans on the need to promote peace right from the individual level to the national level especially as the General Elections draw closer.

Speaking during the event, the CS, internal security and coordination of national government, Hon Joseph Nkaisery observed: “This forum is timely because the idea of engaging in dialogue on peaceful interventions for sustainable development in the contemporary society and especially in Kenya today cannot be gainsaid. Because peace and security are central requirements for social and economic development as well as effective governance, the integration of peace, security and social enterprise as the agenda of discussion during this conference is highly commendable.” He further said that the creation of social enterprises through innovation, creativity and mentorship opportunities particularly by institutions of higher learning will provide a barricade against conflict and war especially among the youth. “Social enterprise is a vital driving force in the growth of any economy hence the reason behind the Government of Kenya’s commitment towards youth empowerment in the Vision 2030 economic blueprint. I commend Mount Kenya University and the partnering organizations for making this conference possible.”

Among other key speakers in the historic event were: the National Cohesion and Integration Commission chairman, Hon Francis Ole Kaparo, the director of The Kenya School of Law, Prof PLO Lumumba

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Chief guests Hon. Joseph Nkaisery, Prof Simon Gicharu, H.E. Eng. James Kimonyo, Hon Francis Ole Kaparo and Dr. Ann Adkins hold doves to symbolise peace outside the conference hall.

and Rwanda’s High Commissioner to Kenya, H.E. Eng. James Kimonyo.

Prof Lumumba in particular appealed to the media to be responsible as they can be propagators of conflict through biased reporting or irresponsible coverage. The need to be conscious when communicating using social media was also highlighted. “When sending messages in whatever platform, people should not feel protected by anonymity because when the ramifications of those messages start to hit, neither the sender nor the receivers will be set apart, all will be victims of loss of life, property and security,” observed Prof Lumumba. Eng Kimonyo on the other hand reiterated this message giving the example of the Rwandan genocide which exterminated close to 2 million people within three months. “The genocide did not just happen, it grew in stages from insightful images and messages to mental division and the actual physical division of citizens.”

The delegates gave speeches on preventive measures of conflict. One of them, Dr. Ann Adkins, assistant Professor of Education, Clarke University observed : “Right from a young age, values of peace can be inculcated in children by engaging them in peace resolution activities and exposing them to service learning where

they reflect on the needs of the society and what role they can play to meet them.” This she said will lay a strong foundation for a peaceful future.

In the same breath, Prof Simon Gicharu, the founder and chairman of MKU said: “Billions of money are spent in solving conflicts but if this colossal amount was directed to enterprise development, more youths would be employed.” Being an entrepreneur, Prof Gicharu said he has experienced the brunt of war and would like to contribute in advocating for peace. “The 2007 post-election violence wounded our institution badly. A good number of students did not resume school probably due to the ethnic animosity that ensued then, while others lost their parents to the mayhem and had to be sponsored for their education.

This goes to show the adverse effects war can have on a country’s peace.” The conference was no doubt instrumental to his endeavour of advocating for peace. He further promised to commit Kshs. 5 million to replenishing the concept of Nyumba Kumi which he vouched would be of great impact in maintaining peaceful relationships among citizens. “As entrepreneurs, we should count profits in terms of the number of lives transformed for the better as a result of our investment,” he concluded.

CORPORATE BRIEFS

GOVERNMENT PLEDGES SUPPORT AS SPORTPESA GOES LIVE IN TANZANIA SportPesa is evidently set for growth as more branches open as envisaged

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he Government of the Federal Republic of Tanzania has welcomed and pledged its full support to leading gaming firm SportPesa after it officially rolled out its operations in the country.

SportPesa Tanzania was launched at a colourful ceremony at Hyatt Plaza, with the platform going live at 11:55am East African Time (+3GMT). The company immediately announced a TSh50m (over USD 22,000) sponsorship for the Serengeti Boys football team that will play at a youth tournament in Gabon.

Chief guest and Tanzania minister for information, culture and sports, Dr. Harrison Mwakyembe welcomed the company as a valuable partner in sports development.

“Thank you for seeing enormous potential in Tanzania, not only to promote sports, but also to create employment and enthusiasm in the same. This is an important and unique chance to develop sports and we will not let this opportunity go,” Mwakyembe told the gathering.

The minister attended the function having driven 600km from Dodoma to Dar overnight after presenting the budget proposals for his docket in Parliament.

He explained that SportPesa could not have chosen to operate in his country at a better time. In respect to this development, SportPesa director of administration in Tanzania, Abbas Tarimba observed : “We are aiming at altering the face of sports development in the country as part of our vision.”

Interim Betting Control of Tanzania Director General, James Mbawe, emphasized that SportPesa had been given the license to operate after meeting all stringent regulations of the gaming industry.

“This is great success for Tanzania because it will increase our visibility. We are proud of their coming,” Mbawe added.

He underscored sports gaming was the fastest growing industry in Tanzania,

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Tanzania Minister for Information, Culture and Sport, Harrison Mwakyembe.

earning the Government TSh21.9bn (over USD 9.79mn) in revenue in the 2015/16 fiscal year, overtaking casinos that brought TSh21.2b (over USD9.48mn) to the exchequer.

“Watching football was a social event four years ago but playing to predict results have established an industry, created employment and social projects. The government realises the benefits. We shall ensure we protect winners, families and Tanzania from any adverse effects of sports

gaming,” Mbawe stressed.

All parties will jointly benefit from the existing SportPesa partnerships with big English Premier League clubs such as Arsenal, Southampton and Hull City, the first side in the top division to be shirt-sponsored by an African brand, and hopefully many local partnerships.

SportPesa was established in Kenya in 2014 and has offices in Liverpool, Nairobi and now Dar-es-Salaam.

STANDING OUT

Mega Jackpot winner Samuel Abisai receives a dummy cheque from Ronald Karauri the SportPesa CEO.

SAMUEL ABISAI’S MEGA JACKPOT FORTUNE SportPesa is not only transforming the sports sector, it is hoisting individuals from poverty to grandeur

By Caroline Mwendwa

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portPesa has shown reliability and integrity by keeping its promise to customers such that they need not worry about getting their pay out once they have won a bet. This was boldly demonstrated by the recently won mega jackpot worth Kshs221, 301, 602 million.

Samuel Abisai won the hefty amount after correctly predicting the outcomes of 17 games using Kshs200.

Abisai’s fortune with SportPesa is the epitome of transformation. His story an evidence that SportPesa is indeed fulfilling its mission of changing lives. The 28 year old lass has not had it easy in life. Having been born in a family where not even basic needs such as education were guaranteed, Abisai has touched the tough seam of the fabric that is life. At a young age of six, he

was out and about hawking paperbags to survive but this didn’t kill his desire to make later days better.

“I come from a family of twelve; I have eight sisters and four brothers. My background is quite a humble one but thankfully, I was lucky enough to secure sponsorship from ‘Compassion’ an NGO that supports children from poor backgrounds acquire education.” Through this organization, Abisai made it all the way to the University of Nairobi with qualifications to pursue economics but later changed to study Chinese hoping to spare time while studying to fend for his family. He also set up a tailoring business as a side hustle.

Today, Abisai can speak fluent Mandarin.

He hails from Kakamega but lives in Nairobi along Thika Road with his younger brother.

He said that the jackpot was a huge surprise to him and his family. “When I was called by

the SportPesa CEO (Ronald Karauri) in the middle of the night, I was so happy. I stood outside a petrol station jumping in elation to a point that I drew the attention of boda boda operators standing by,” he recounted.

He however pointed out that having carefully followed the outcomes of 15 matches of the mega jackpot, he had started to celebrate with friends as he had already reached the threshold for bonus pay outs unaware that he would eventually win the top prize.

Even though not yet fully decided on how to best use the money, Abisai had intentions to expand his tailoring business and seek financial advice on how to spend the rest of the fortune.

With such potential to not only steer growth in the sports industry, but also transform lives, SportPesa has plans to explore beyond the Kenyan borders and has already pitched tent in Tanzania.

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A BRAND ON WHEELS Davis Nyamare in partnership with Robins Olima have brought in a fresh breath in the advertising industry in Kenya

By Caroline Mwendwa

D

avis Nyamare’s creative new idea in the Kenyan advertising industry has become a game changer.

When people hear of advertising, they think of newspapers,

radio, TV, bill boards and other mass media channels but Nyamare’s fifteen year stay in the US opened his mind to a new experience which he used to change the norm in the advertising industry. “When I came back to Kenya, I realised that traditional media and the rising trend in social media

platforms dominated the market. This had me thinking of what I could do to make a change. Having seen a different scenario in the United States where almost all taxis have toppers for advertisement, I realized there was an opportunity to introduce that concept locally.”

Nyamare had a clear picture of what he wanted to establish and having started to build this idea while still in the US, setting it up in Kenya was no uphill task. He had a childhood friend based in Nairobi (named Robins) who came in handy in helping him set up the business. “We were in communication even while he was still in the US and that is when we started thinking of how to start the business,” says Robins,

Davis Nyamare, the proprietor at Meelin Advertising and his partner Robins Olima (left).

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MAKING MONEY: YOUNG ENTREPRENEUR does not offer ready advert. “In most cases, corporations want to come up with the message to ensure consistency in their branding, but in the event that they want it done by us, we have a creative team accredited with high quality messages.”

Nyamare on the other hand ensures that as the CEO, he bears the vision of the firm by communicating and implementing the short and long-term goals.

the chief operations officer at Meelin Advertising Agency.

Meelin Advertising Agency was started in 2015 with the aim of changing the trends in the advertising industry in Kenya. “Our concept is very unique and way more satisfying to customers,” he further says.

Maleen Advertising majors in using taxi tops and LCD to advertise brands. The materials that they use in this trade are imported from Japan. “We realised that we could only get these materials at the best quality from Japan but we hope to have a local supplier once we identify one.”

Nyamare explains that depending on the type of the topper requested by the customer, whether digital taxi top or otherwise, the time required varies. “For a digital taxi top, it takes longer to fabricate, approximately one month, while the usual taxi top can take from two to three weeks but we always make a point of informing the customer how long it will take.”

This mode of advertising is highly unique and advantageous given its outstanding features. For instance, each topper is fitted with minute cameras which can recognize faces as either male or female. From these cameras, the team at Meelin can provide factual data to its customers detailing the number of people who were reached by the message, an approximation of their age and gender. “This is one of a kind feature in advertising that is provided by our platform without having to engage other resources and which makes our customers prefer it.”

Apart from the minute cameras, the taxi top method of advertising is more appealing because it involves moving from one place to another making it highly visible by all people in its proximity. As would be expected, people took time to appreciate the strength of this channel of advertising but with time, it’s gaining popularity.

Target market The target customers are usually the promotional adverts and campaigners who feel that their product is not common enough to the audience. Taxi tops have now become a preference especially in the gaming industry through betting firms.

Meelin Advertising has signed in one thousand five hundred taxis already. “We appreciate the taxi drivers by giving them financial benefits at the end of the month and this encourages them to prefer doing business with us,” says Nyamare. The rates of the taxi top adverts is affordable ranging from Kshs. 30, 000 per taxi top for a minimum of 20 taxis to around Kshs. 300, 000 depending on the services requested.

“The take up so far is impressive as hardly a week goes without a potential customer calling in to request for our services,” says Robins.

Why taxis?

Before settling on taxis, Nyamare and Robins had thought of experimenting on matatus and buses. “We realised that with public service vehicles, we had to go through tedious procedures for approval before pitching any topper as there is more than one company involved. Also, dealing with buses and matatus presents a challenge of limited security but with taxis the scenario is totally different.”

The two run the business with a team of ten sales people who are required to bring in at least four to five clients in a month. Robinson is charged with ensuring that the customers are satisfied and their expectations are met. “I keep an eye on the operating taxis to ensure that we deliver the promise we make to the customer.”

The staff also includes a creative team who design the messages where the client

Value for money Advertising is a game of convincing potential customers that they will get value for their money. As Nyamare explains, once an organisation says that they already have a budget and can’t accommodate more expenses, the advertising agency reaches a dead end with that particular client, until there is another budget to be drawn on costs. He however appreciates the fact that corporations have expanded their marketing budget and there is a likelihood of better opportunities in the near future. “It is however necessary to note that as we approach the General Elections, firms are limiting their advertising budget due to the uncertainty in the operating environment.”

Popular Nyamare hopes to popularise taxi tops as a channel of advertising. “My goal is to have 99% of the registered taxis in Kenya bear high quality taxi tops,” he avers.

The two entrepreneurs are highly inspirational. Their insights as enterprising young men with a vision in the advertising industry are captivating enough to challenge their age mates to give a try in business.

“I like challenges, and entrepreneurship is exactly that; you wake up every day to solve a problem, and in the long run it pays back, “says Robins. His advice to entrepreneurs is that they should venture where their interests are. “Do what what makes you happy, while aspiring to make life better.”

For Nyamare, success in business calls for taking risks and the younger one is, the better. “Individuals can mould the life they want and the only way to achieve this is to be comfortable with uncertainties, and keep on a progressive goal that does not shift with change of circumstances.” He also asserts that if one is spending his or her life doing what he or she does not like, then they are not working. “It is only by doing what one enjoys doing that he or she can make someone else’s life better and that is what success entails; adding value to other peoples’ lives.”

For the duo, family time is highly valuable and when they are not working, spending time with the loved ones and taking enough rest is the way to unwind.

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PASSION AND AMBITION ARE HER BUILDING BLOCKS Steered by passion and ambition, Beatrice Wababu has built a brand that transcends her

By Caroline Mwendwa

W

hen motive and opportunity converge, there is definitely going to be fulfillment.

Beatrice Wababu’s journey is one that spells out this scenario.

Passionate and goal driven, she quit her corporate communications job at the National Social Security Fund (NSSF), to found Wabcom Ventures, a firm that deals in training and business management consultancy.

“I always had a dream of starting my own consultation firm and when our family business needed someone to handle the human resource role, I knew it was time for me to quit the public sector and give this need the attention it deserved.” On resigning from NSSF, Wababu started serving at the family business as an executive director and immediately grabbed the opportunity to establish the consultancy firm she had long desired.

Wabcom Ventures has since grown from strength to strength under her tutelage given her solid background in both education and practice. Wababu is a masters degree holder in communication studies from Daystar University and is currently pursuing a PHD in leadership and management from the same institution.

Wabcom Technologies Wabcom Technologies is a family business, a partner with Safaricom in distributing products and services. Its rapid growth called for structures and systems to ensure that the right human resource was being hired and there was continuity in all its 200 branches located around the country. When Wababu left NSSF to occupy the position of a director at this firm,

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Beatrice Wababu, founder Wabcom Ventures.

her main role therefore became working with supervisors in various branches in coordinating the human resource function.

“I realised that I was already handling a lot of the firm’s work while still an employee as a civil servant, and for me to do this role in a more fulfilling way, I had to be present for closer monitoring.” Wababu admits that her personality differs highly with that of her husband and this difference is actually complementary. “I have more proclivity to listen to people and give guidance especially on human resource (HR) matters and settling disputes,” she points out.

However, just like all family businesses, there was need for a strategy to ensure that professionalism was maintained. “Having a husband for a partner can sometimes lead to unprofessionalism which can actually

be a major undoing for any business,” she advises. Therefore, Wababu and her husband had to set up rules by which to operate. “We would do a lot of research from the internet, read books on case studies of family businesses that have weathered the storms and this has gone a long way in ensuring that we don’t cross the lines of business.”

As Wababu explains, setting rules of operation is critical for any family business.

“You must agree on not bringing home to work and not taking work home,” she quips.

She also says that work relations should not be mingled with the familial bond, otherwise there will be no subordination and decision making is likely to be subjective. However, so far so good. Her presence at the company has been of great impact, even fulfilling. “I

EXECUTIVE PROFILE

Beatrice Wababu during a training session.

am glad I quit full time employment to do this because not only was I able to fill a gap in the company, I also had time to pursue my dream of establishing a consultancy firm (Wabcom Ventures) to help employees deliver efficiently.”

Wabcom Ventures At the time of founding Wabcom Ventures, Wababu did not have money set aside for establishing a business. Therefore, she hired an office at Westlands in Nairobi and started operations as a sole proprietor.

She was the only employee. However, after sometime, she hired an administrative assistant and eight months down the line, she secured business from the first client.

Since then, Wabcom Ventures has been acquiring both corporate and individual clients.

“We have been getting clients through referrals, tendering and partnerships.” From one employee, Wabcom Ventures has grown to seven employees among them marketers and administrators. In addition, it has employed 33 consultants who offer training to its clients.

Currently located in the busy Upper Hill district of Nairobi, the establishment has training rooms where sessions take place.

“We have modern facilities where we offer the training sessions, however, the venue of the training depends on the preference of the client,” says Wababu further adding that the environment of training can greatly influence the end result. “Clients need to be trained in an environment where they are not easily disrupted. It has to be conducive,” she asserts.

Accredited Wabcom Ventures is today a National Industrial Training Authority (NITA) accredited company with a highly impressive portfolio. “We have provided services to county governments, several corporate brands among them banks, supermarkets, telecommunication firms, insurance companies and other privately owned companies,” she observes.

Individuals also enroll for training. “We have professionals whose work requires proper communication skills such as lecturers and doctors coming for training.

Communication is highly essential in any line of career and that is why such sessions are slowly becoming a trend.” At Wabcom Ventures, training of trainers is also a mainstay. Very few people are born trainers and most of those who wish to be trainers require training. As Wababu points out, the most important element in training situation is the trainer. The firm focuses on producing the most effective trainers who are capable of evoking the greatest response from the trainees.

Having solidified the base, the next aspiration for Wabcom Ventures is to become an international centre for training professionals.

Juggling roles Apart from running the businesses, Wababu is a mother of five children four of whom are young adults between the age of nineteen and twenty four. “Juggling motherhood, education and business is no easy task, but somehow being in all

these worlds helps in exposing children to relevant skills of life.” Together with her husband, she mentors her children to be entrepreneurs all of whom have worked in an M-Pesa agency at some point during their education.

The first born (a lawyer by profession) is the legal consultant for the family business, while the second born runs an event management company as the CEO. “We try the best we can to make them responsible and open their minds to entrepreneurial opportunities.”

Succession planning While succession in family businesses can present a challenge, Wababu explains that it is important to expose her children to the business, so that they can learn its ropes. “Sometimes, we throw a challenge the business is facing at them so as to trigger their minds and make them problem solvers at an early age.” Wababu however warns that it is not wise to push the business down their guts if they don’t want future engagements. “They have already shown interest in other areas of business and we are offering them the support they require.”

The leadership role Wababu believes in transformative leadership. “I am driven by the desire to see people grow in their professions. I believe that by impacting positively on other people’s growth, I also grow in the process and there is nothing as rewarding as such an achievement.”

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By Carolyne Gathuru

THE CONSUMER PROTECTION ACT IN KENYA –

A CUSTOMER PERSPECTIVE

T

he Consumer Protection Act 2012 that was later assented into law on 14 March 2013, has been deemed as a turning point for customers country wide, considering that it is the first of its kind to formally document the rights of consumers, and to provide guidelines on various consumer-supplier interactions.

Contained in its statutes are two main objectives: to provide for the protection of consumers in the country, largely referred to in common speak as customers; and to prevent unfair trade practices in consumer transactions from suppliers.

Docile Although the act has been in place for four years now, consumers in the country seem unaware of it and of the rights enshrined in it to protect them.

The perception that the Kenyan customer is at the mercy of the supplier is rife and is only now slowly turning around, with the advent of the more technically savvy and informed citizen.

It also said that Kenyans by nature are not litigious, and when faced with unfair transactions would rather defer and exit, rather than take suppliers to task.

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This is attributed to a combination of two things - that the populace by nature is generally more docile than West Africans, as well as the general disenfranchisement of citizens by the judicial process that is deemed to be long, winding, arduous and terribly expensive with unknown outcomes.

These notions notwithstanding, consumers need to know that this act provides a powerful tool for lobbying for excellent service, as well as seeking redress for service failure.

The act indeed is a huge win for customers and the recognition of their rights has truly been captured. Albeit not with the intricacy required and with some sectors remaining unmentioned, it still advocates for the voice of the customer.

The act spells out the rights of consumers with regards to dissatisfaction from products and services, as well as an indication of the steps to take to seek redress.

This empowers customers not only to know what they are entitled to, but also to understand the action to take when faced with a genuine supplier originated problem.

The act also covers compensation for customers in event that there has been a liability by the provider.

Drivers It is crucial for customers to be aware of these three elements, and that they have a law behind them to protect their interface with suppliers.

It would be important for consumer education fora to be convened by the ministers in charge of trade and industrialization in each county, to ensure citizens are educated on their rights, and for civic education players to expand their jurisdiction from governance based awareness programmes, to include consumer rights.

Customers are the drivers of trade worldwide and for any country to flourish, it requires robust trade. This is entirely dependent on consumption of goods and services.

With the need to be competitive globally, a national re-orientation towards customer satisfaction is necessary from the commercial, not-for- profit, government and the informal sectors of our economy. The survival and growth of businesses today is pegged on a focus on meeting customers’ needs and designing customer oriented products and services.

Most importantly however, is delivering service excellence to further drive business

BUSINESS KIT: CUSTOMER SERVICE continuity. If both suppliers and customers are attuned to the Consumer Protection Act, the nature of business services will change for the better, ultimately culminating in economic success.

Customer experience Customer education forms a huge part of the drive for customer experience excellence. This is the bid to have fully knowledgeable customers, enabled to opt in from a space of complete awareness.

The Consumer Protection Act includes the right to full disclosure and information pre-agreement or contractual sign up, so that customers are empowered to make knowledgeable choices.

The so called ‘fine print’ needs to be brought to the customer’s attention for informed decision making.There is the need for discussion of exit clauses that are often not mentioned until something wrong occurs. The Act protects customers by defining their right to the provision of adequate notice ahead of the termination of a service.

Arbitrary decisions to cut customers off at will and without prior warning are prohibited.

Gone are the days when brands could solely determine the direction to take, besides dictating what was to be done to customers. With the enactment of this Act, businesses must consider how they will respond to customers’ needs, empathize with them and before applying any termination, determine if adequate and fair notice has been applied.

Related but with more specificity within the Act are the rights of customers to raise issues concerning the quality of goods or services provided, especially if contrary to the agreed specification.

The customer has the right to complain and take legal action where these do not meet his or her expectations.

With regards to service delivery, the right to raise the alarm on delays in delivery or to amendment or rectification as agreed is captured.

So not only must the goods or services be of good quality, but also delivered on time or rectified in a timely manner as agreed by both parties.

Timeliness is a key principle of customer experience excellence. As enshrined in this law, all businesses alike must strive to keep their promises and deliver goods and services as planned. The drive for this although achieving both, should more largely be based on the desire to provide delightful experiences for customers, rather than complying with the long arm of the law.

The Act also gives consumers the

Customers are the drivers of trade worldwide and for any country to flourish, it requires robust trade express right to swing into action should there be a breach in the provision of goods or services.

Country wide, across business channels and economic sectors, customers feel helpless in the event of service failure.

Organizations and enterprises, both in the formal and informal sector are often quick to dismiss customer complaints.

The Act however heralds a new dawn that addresses unfair trade practices in consumer transactions.

Customers have been bestowed with the right to commence legal action in relation to any disagreement relating to a contractual relationship for the provision of goods or services.

Whatever agreement is in place between the customer and supplier should not negate the customer’s right to take legal action.

Celebration Customers who often have numerous complaints that go unheard should celebrate this law.

It prohibits unfair practices by suppliers, and customer service activists have embraced the clause that indicates ‘Any ambiguities in a consumer agreement (including oral agreements) shall be interpreted in favour of the consumer’. No further evidence is needed that the Act has the best interests of customers at heart.

By and large, it outlines what constitutes malpractice by a supplier including: misrepresenting goods or services as performing particular functions or services that are in reality inaccurate; presenting counterfeit materials as the original, or masking them to imply performance or quality where it isn’t achievable, taking advantage of ( or pressuring) customers who may be unable to comprehend the consumer transaction owing to disability, illness or illiteracy and over pricing where

the price grossly exceeds the price at which similar goods or services are readily available to like consumers.

The Act on the matter of price goes further to indicate that if a supplier of goods or services provides an estimate, he or she cannot charge the customer an amount that exceeds 10%.

Consumers have the right, embedded in this Act to terminate agreements and seek legal action where a breach has occurred.

Empowerment The customer environment is changing in Kenya. Customers have become more empowered over time and have very high service expectations from both the public and private sector.

They also have a heightened awareness of the opportunity for communication and feedback on goods purchased or services rendered.

The fact that a law that supports the consumer rights now exists is a step in the right direction. It is very encouraging to note as well that although the Consumer Protection Act is in place – and even with its inherent shortcomings – to safeguard the rights of customers as the main piece of legislature, it is very closely backed up by the work of the The Competition Authority of Kenya established under the Competition Act, No. 12 of 2010.

Its mandate is to enhance the welfare of the people of Kenya by promoting and protecting effective competition in markets, and preventing misleading market conduct throughout the country.

This body also receives complaints from legal or natural persons and consumer bodies in the country, and it is responsible for reviewing and advising on consumer protection provisions, advising and educating consumers on their rights and responsibilities and also resolving disputes between consumers and traders.

Having excellent legislation in place is one thing, but having an enlightened populace is another. It should be the duty of every consumer to seek to understand what is in place to protect their rights. Likewise, it is the responsibility of every supplier to know the consequences of breaching consumer engagements. The awareness all round will serve to protect the interest of those being served and streamline those who have chosen to serve.

Carolyne Gathuru is the founder and director of strategy at Lifeskills Consulting. She has over 17 years experience in customer service strategy development and training.

Email: cgathuru@life-skills.co.ke

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By Dr. Kellen Kiambati PhD. HRM(K) CBPO(A)

MANAGING AN ORGANIZATION IN A COMPETITIVE ENVIRONMENT

E

nvironment is a force or a factor within or outside an organization that influences its performance either positively or negatively. The organization is surrounded by two main environments - internal and external. The internal environment consists of the firm itself, the owners or shareholders, the employees, internal technology, internal suppliers and internal financiers. The internal environment is largely controllable and the organization can manipulate it to its advantage. On the other hand, the external environment mainly consists of the forces beyond the control of an organization such as the pestel factors.

Pestel is an acronym for political, economic, social-cultural, technological, ecological/ environmental and legal environments.

PESTEL a) Political factors This explains the level of government’s involvement in the national economy like Kenya in political, social and economic

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matters. Political factors include government policies, political ideologies, political affiliations and provision of public goods in the economy. Examples may include the tax policy, the labour law, environmental law, trade restrictions, tariffs and political stability. Political factors also include areas like goods and services bought or banned by the government. The government is a major buyer of goods and services in the economy to support sectors like health, education, agriculture and infrastructure among others. Political factors can either be a threat or an opportunity to an organization. b) Economic factors These factors include areas like economic growth, interest rates, exchange rates, inflation rate, the gross national product, income per capita, employment levels and so on. They significantly affect how organizations operate either positively or negatively. For example, interest rates affect a firm’s cost of capital and therefore to what extent a business grows and

expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy while inflation affects the cost of the factors of production. c) Social- cultural factors These include the cultural aspects of the population for example, health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety, religion, connotations, tastes and preferences. Changes in social factors affect the demand for a company’s products and how it operates. For example, changes in tastes and preferences of people may lead to a loss of a big chunk of the market. d) Technological factors The factors above include changes in processes and configurations due to innovation, automation, new inventions, research and development activities among others. Technological changes can determine barriers to entry, minimum efficient production level and influence

BUSINESS KIT: MANAGEMENT outsourcing decisions.

Furthermore, technological shifts can affect costs, quality, and lead to innovation. e) Environmental factors These include weather as well as climate and climate change, which mostly affect industries such as tourism, agriculture and insurance. This also covers issues like pollution and waste management.

Growing awareness to climate change and environmental issues is affecting how companies operate and the products they offer. f) Legal factors Legal factors include issues like consumer law, antitrust law, labour laws, copyrights, health and safety laws and bylaws. These factors can affect how a company operates, its costs and the demand for its products.

The bottom-line is that the company needs to operate within the laws.

To survive and win in a competitive environment, organizations have to gain competitive advantage over their competitors and earn a profit .Organizations gain a competitive advantage by continuously improving how they conduct business in order to thrive and be better than their competitors. To succeed in the environment, the managers must deliver the following fundamental success drivers: quality, cost effectiveness, speed, innovation, technology and globalization.

1. Quality Quality is the excellence of your products and services. Customers’ expectations have increased on the quality of goods and services they expect to buy from their suppliers. Customers now demand highquality goods and services, and often they will accept nothing below their expected quality. For a company to survive in a competitive environment, it has to produce and supply products of high quality. W. Edwards Deming, and J. M. Juran and other quality gurus popularised the need for organizations to embrace Total Quality Management (TQM) which encourages managers to ensure the following are achieved: 1.

Preventing defects before they occur; 2.

Designing products for quality; 3. Embracing the philosophy of continuous improvement; 4. Ensuring quality is the responsibility of all employees in the organization; 5. Top management should be committed to quality improvement; 6.

Managers should thrive to exceed their customers’ expectation in meeting their quality requirement.

Service quality is vital as well. Managers

should ensure their customers are given high quality goods and services to satisfy them and exceed their expectations.

Companies can achieve customer satisfaction by listening to the customers’ description of the quality of goods and services they would like to receive from them. Providing world class quality requires a thorough understanding of what quality really is through your customers’ expectations. Quality can be measured in terms of product performance, customer service, reliability, conforming to standards, durability and aesthetics.

2. Cost effectiveness Cost effectiveness means that a company’s products and services costs are kept low enough so that you can realize profits, while pricing your products (goods or services) at levels that are attractive to consumers.

3. Speed Speed is the fast and timely execution response, and delivery of results. Speed separates winners from losers. How fast can an organization develop and get a new product to market? How quickly can it respond to customer requests? An organization is far better off if it is faster than the competition and if it can respond quickly to your competitors’ actions. Speed is a competitive imperative these days.

4. Innovation Innovation is the introduction of new goods and services. A firm must adapt to changes in consumer demands and to competitors. Companies cannot survive in today’s business environment without continuously being innovative. Innovation adds to a company’s competitive advantage, so it should be a strategic goal and must be managed properly.

5. Knowledge management Today’s manager must create a work environment that attracts good people, makes them want to stay and inspires creative ideas from everyone. The goal is to turn the brain power of their employees into profitable products. These are practices aimed at discovering and harnessing the organization’s intellectual resources.

Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create value in the organization. Due to competition, organizations need to combine the employees’ talents to achieve unique and significant results. A knowledgeable worker is very valuable to organizations today. This is someone whose knowledge is a critical asset to the organization.

Knowledge management is about finding, unlocking, sharing, and altogether capitalising on the most precious resources of an organization which are people’s expertise, skills, wisdom and relationships.

Knowledgeable managers find human assets, help people collaborate and learn, help people generate new ideas, and harness those ideas into successful innovations. Due to the importance of knowledge management, a new career has been developed and companies are searching for knowledge managers.

6. Technology Organizations cannot survive in today’s business environment without the support of appropriate technology. For the purpose of speed, achieving quality standards and getting to be competitive in the market, technology should be embraced by all businesses. Managers therefore should be informed on the technological innovations so that they can adapt the new technology where necessary. Technology can be defined as the methods, processes, systems, and skills used to transform resources into products.

7. Globalization It is the worldwide interdependence of resource flows, product market and business competition. In a globalised world, countries and people are increasingly interconnected through the news, in travel and lifestyles, in labour markets and employment patterns, and in business dealings. Managers need to be enlightened to global realities. This is because globalisation affects all types of business. Companies are in great pressure to improve their products and services so as to face the intense competition from foreign companies.

Environment management Environment analysis may be approached from several ways: a) From an input – output analysis whereby the major environment aspects are human resources, capital, managerial and technical factors as inputs. On the other hand, products, services and profits are outputs. b) Social responsibility and ethics approach: Focuses on the claimants in the environment such as the employees, consumers, suppliers, trade unions, government and the general public. Each of them will have a claim in the organization. c) The external – internal approach to the analysis of environment. It gives the following as components: • Technological, economic, political - legal • Social-cultural, historical &

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BUSINESS KIT: MANAGEMENT

geographical The internal environment component includes mainly the firm’s internal resources, tools, equipment, plants, the financial resources, the human resources, the technological resources as well as the marketing resources. For internal environment, the analysis is SWOT (strengths, weaknesses, opportunities and threats).

The internal environment provides the organization with strengths (strong brand name, strong financial base, skilled workforce) and weaknesses (weak management, limited products, weak technology and processes) while the external environment provides opportunities (merger, new sources of raw materials, withdrawal of a strong competitor) and threats (entry of a strong competitor, political instability, changes in tastes and preferences among others).

The internal environment is easily controlled by the management while the external one is not easy. In the analysis of external environment consider the dynamism (how fast is it changing)?

Organizational context Organisational context refers to the organization with its interactions with the surrounding.

Context explains the circumstances surrounding the organization. It explains what comes before and what comes after. In systems approach we have: Since organizational context explains what surrounds the firm, whatever is within the environment of the organization influences the way it behaves.

There are FOUR contextual dimensions/ factors that influence the organization.

These are:

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1. Environment 2. Strategy 3. Size 4. Technology 1. Environment and design: There is a relationship between organizations • Mechanistic - Things are more stable and predictable • Organic - A dynamic environment with a lot of changes.

Mechanistic design which resembles the bureaucratic organization emphasizes on the rules, specialised jobs and centralised authority. In organic designs, rules and regulations are minimal, tasks are done more in groups rather than individual.

Authority is decentralised, members often

Input

gather information on their own and figure out what to do rather than rely on directives from superiors.

Two other British researchers suggested that organizations vary along two dimensions as a result of the environment.

These are differentiation and integration.

Differentiation describes the extent to which the organization is broken down into departments that differ by managers, orientations and structures e.g. Unilever Kenya, an organization which has many departments has a high level of differentiation while one with few departments has a low level of differentiation.

Integration is the degree of collaboration that exists among departments e.g. EABL. High integration occurs when managers must coordinate their activities with other departments. Low integration occurs when departments can operate autonomously and therefore coordination between departments is not required.

Generally, a complex and rapidly changing environment increases the need for differentiation and integration of an organization. A complex environment requires that managers create highly specialised departments to develop expertise and handle the demand of uncertainty due to environmental changes.

Increased integration is necessary as frequent changes require greater information processing and adjustments within and across departments.

Managers of an organization in a stable environment should develop structures that are mechanistic in order to be effective. If the environment is unstable, managers

System

Output

BUSINESS KIT: MANAGEMENT A closed system done for another person.

should adopt an organic design for their organization. Managers however need to recognise that the environment varies by complexity. When the environment is highly complex, an organization should be differentiated with each department developing structures that are best to suit it to the part of environment it deals with. Integration is necessary when the departments must work together and when the environment is unstable.

2. Strategy and design: A strategy is a general plan of action which shows how a company can mobilise resources and how it is to deploy them to achieve an objective.

Structure follows strategy. Structure is the means by which strategy is implemented.

Therefore, organization strategy is closely related to the company’s environment and this relationship influences the structure of the firm.

Organization Aim Operate in an environment Strategy Structure 3. Size and organization: The size of an organization influences the way it affects the environment. The more complex and the bigger the organization, the greater the influence will be on the environment. The size of an organization can be measured in a variety of ways for example market share, total revenue, number of employees, total capital investment and scope of operations.

4. Technology and design: Technology is a conversion process that transforms organizational inputs into finished output or products. Technology is not merely machinery but also includes knowledge, tools techniques and actions that are necessary to complete the transformation process. It has been found in practice that technology affects management practices and styles, manufacturing processes, size of the firm, economic performance and structure. The more complex the technology, the more complicated is the management style.

organization is based on the assumptions and ideas of an Australian Biologist Ludwig Von Bertalanffy (1951). In the theory of systems, there are two types of systems; closed and open.

A closed system Closed systems supply its own inputs and must consume its own output. It is difficult for such systems to exist in nature.

Monasteries in remote mountainous areas come close to these systems.

An open system Feedback loop All organizations are open systems i.e. they actively interact with their environment.

They receive both demand and inputs from the environment. They process the raw materials into finished goods/services and they export the same into the environment.

The external environment is composed of the government, labour organizations, consumers, suppliers and the general public. A system is composed of subsystems. These sub-systems can be the input systems, transformation systems and the output systems.The term product is a generic label for the product of a productive system. It can be a good or a service.

Goods are defined as movable personal property such as cars, computers, and desks. Capital goods are immovable personal property such as land, buildings, and factories and so on. A service is an activity required by a customer or work

Characteristics of an open system 1. They receive inputs from the environment in form of labour, capital, raw materials, water or even air.

2. All open systems have a transformation process called production function. This is the process by which the inputs are transformed into finished products and services. The transformation process is affected by the external environment. These include the weather conditions, government regulations, equipment breakdown or natural disasters as earthquakes, hurricanes and landslides.

3.

Interrelationships of subsystems.

All natural as well as man-made systems are inter related, otherwise they would not exist. Our universe, the galaxies, the solar system, the world, the country, the city, the organization and individuals are all part of a system.

Nothing is independent in nature. An organization (like a company) is composed of departments and divisions which are all interrelated. Von Bertalanffy emphasized that the survival or failure of the system is dependent on the interrelationships of the subsystems and their contribution to the overall purpose of the system. Therefore, activities in a production department of a company will be determined largely by the sales department which depends on budget allocation from accounts department which in turn depends on other departments.

Dr. Kellen Kiambati holds a PhD in business administration with a focus on strategic management from JKUAT and an MBA from KEMU. She is a certified business associate (CBPA) and a member of the Institute of Human Resource Management of Kenya. She is also the author of business Research Methods and can be reached on kellenkiambati@gmail.com

An open system

Systems approach to organizations Organizations are viewed as systems. A system is a group of things or parts working together in a regular relationship. This relationship can be regular interaction and interdependence. Systems approach to

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By Peter Muya

THE AVALANCHE OF PREFIXES ADDS COMPLEXITY

I

recently read a LinkedIn post titled : ‘ Why digital isn’t the economy’ by Alun Probert which resounded a long held conviction about where we should place digits and digital within the enterprise. For the risk of facing the brunt of digital enthusiasts (HR has actually created roles purely focused on digital and it is ok), I waited to see if someone would fire the first shot and Alun did exactly that.

Let me now add my voice to his.

Two decades ago, before I joined the university for my undergraduate degree programme, I was involved in running our family business. My dad has been an entrepreneur and he ably involved us as and when we were of age. So right after high school, I was thrust in the deep end of real business - not the one I had studied in high school. I faced real traders, real competition, real money, real stock and I had real sales targets to meet.

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Mobile service The business was primarily wholesale distribution of consumer commodities such as sugar, salt, flour, cooking oil and soft drinks among others. Due to the poor infrastructure and inability of remote small scale traders to come to our store and make orders in a timely fashion, my dad invested in trucks that would pack an assortment of these commodities and transport them right at the doorstep of these traders.

We called this line of service, “mobile”.

Literally, it was trade on wheels. I loved it due to the opportunity to travel away from home and interact with these traders at their doorstep. Back then, there was no IT or mobile phones at our disposal. The trucks provided the interface, the online store, the bandwidth to transport stock

and all the infrastructure of a modern day m-commerce. It was still trade and the focus was on getting stock in a timely fashion to our remote customers in order to ensure they didn’t run out. At the end of the day, we didn’t look at how many peeped in the back of the truck, but rather how many orders were processed and paid for.

My history classes in high school remind me of the Trans-Saharan trade. It was made possible by camels traversing the Sahel and pitching tent in some open air spaces in the West and North of Africa.

We may call it dromedary trade. The camel back then played the role of a fibre cable by carrying the order requested and the shipment information via an interface called an open air market.

Then we also had the Trans-Atlantic

BUSINESS KIT: ICT

trade. It was made possible by boats sailing on the coasts of the triangular regions of Africa, Europe and America. Sugar, tobacco and cotton were sold to Europeans, slaves were sold to the Americans and textile and manufactured goods were sold to Africans.

The boat replaced the camel in this case as the infrastructure to facilitate trade. But it was still trade. We didn’t call it boat trade.

Changing world Then we had planes for transport, telephone for communication, cheques and later on credit cards as modes of payment and then the World Wide Web. This further extended the trade value chain.

Buyers needed not board the plane or the ship to go and place an order while sellers needed not board the plane or the ship to accompany the goods they had on sale.

These two were connected by a web of value chain - the middle that connected demand and supply in a more efficient manner. We baptized this e-commerce but it is still trade.

Today, I think we are lost in carriers (camels, boats, planes and technology) and thinking they are the economy. The word e-this, i-that, digital have become commonplace. Adding a prefix “i” “e” or “digital” sounds cool and acceptable. But the bottom-line is that the activity has been deeply entrenched with a medium centric tag.

Those terms tend to get us carried away, potentially making us lose the meaning

behind the carriers or facilitators of economy and social activity. That in my view is what makes IT over rated because people misrepresent it for what it is not. Just as the camel was resilient in the desert crisscrossing the harsh landscape, our digital landscape is rich with robust infrastructure (not just the network but the technology stack that defines its architecture). But ultimately, the camel never produced or sold anything or paid for it. The participants in the trade did.

In his book Bank 2.0, Brett King says this of loans: “Customers don’t need a car loan, they need a car”. The loan is an important enabler in the customer’s journey to drive a car but the loan is not the car. Similarly, ‘Airbnb’ is a platform that makes it easier for us to find accommodation. It is not the accommodation. Someone must provide a house, that has a bed and all the items that are required for a peaceful sleep. Those are things outside ‘ Airbnb’. The same applies for taxi hiring services like Uber. The word here is ‘hiring’ , not ‘taxi service.’ A car must exist, bought and driven by someone (or driver-less) and in serviceable condition to provide the service the customer requires which is movement from point A to B. I am an IT practitioner. I have been one for close to 17 years. I have developed applications and managed some small and large scale automation projects in this region. I have also made presentations and written proposals for clients seeking to invest in technology. I know the immense

value IT plays in the value chain.

However, it must be a silent enabler and not a loud distractor of socio-economic interaction. We need some level digital detoxification.

Yes, it is true this note is typed using word processing software and submitted on a digital network to an audience that will read it in digital form. It is also true that were it written in the 17th century, the media available then that enabled communication would have been used. Communication still happened.

The enterprise must therefore focus on maximizing on the existing means of doing business to be more efficient and effective in a rapidly changing environment. These platforms should be fully utilized, and not merely adopted. Whereas adoption is important, getting value is paramount.

About the author Peter Muya, is an award enterprise transformation practitioner, possessing 15 years experience conducting mid and large-scale transformation projects in the telecommunications, financial services and public sector industries. He is the co-founder and a managing partner of PTI Consulting, a pan-African consulting practice providing ICT related business advisory services Web: www.pticonsulting.co.ke Email: peter.muya@pearltouchint.com

31

By John Kageche

FOR A FASTER CLOSE, MAKE IT EASY FOR BUYER TO UNDERSTAND AND DECIDE

H

e listened keenly to my responses then said: “Let me show you something.”

He opened his laptop made a few keystrokes and turned it towards me. “Is this the kind of website you’d like, or is the other one better?” I liked the first. He didn’t bother to explain to me how it was made. He just showed me what I wanted. He made it easy for me to understand and decide. This is what I’d like us to talk about today.

Observing these four aspects helps in doing so. Explore through questions.

Limit options while offering appropriate alternatives. Eliminate Jargon. Educate where necessary.

Explore through questions When selling a computer for instance, getting excited about Core 2 duo, 5 Series, 2GB RAM and all the gizmos is not of much use to the average buyer.

Exploring through simple questions is more productive. “Do you seek a laptop or a personal computer?” Laptop. “Which one do you currently have?” It is black and has Q written on the top. (Meaning he is lay to the bone) “You mean like this one here?”

(Make it easy for him to choose) His eyes light up, Yes. “It’s a good laptop. Why do you want to change?” It’s getting slow and I was told it has been overtaken by time.

Plus I keep getting this annoying pop up to upgrade to Windows 10. (He’s a technology laggard, hates change but wants a faster machine) “Okay; which programmes do you mostly use? As in Excel, Word, Corel Draw, iTunes?” No. Just Word, PowerPoint and sometimes Excel. During my free time, I dabble a little with Publisher though.

“Okay. Is yours a field job, like sales or it is a desk job? (To know whether to get him a heavy or light duty one) Desk job. “Are you particular about the colour?” Not really.

Show me what you’ve got... Chances are that this exchange will happen as he is moving about your showroom or his eyes are browsing the display window. Meaning it’s a conversation, not an interrogation. “I think you will like this one. Your laptop is a 2 Series and we are now in 5, which is why it is slow –educating. This one is a 5 Series and comes with Windows 10 fully installed

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- suitable alternatives. “You want to move to Windows 10 because lower versions will struggle with inevitable upgrades and you will have a much smoother end exciting experience (not interphase). Here try it out” (He does). It comes in two colours-this brown and green. The price is the same.

And to help you in your presentations, let me show you what a slide presenter can do…. “ Notice that a much more superior machine was sold, but the conversation centred on the buyer’s needs. Let him be pleasantly surprised when he discovers the other things his new laptop can do when he gets oohs and ahs from colleagues, friends and family. After all, he’ll trust their admiration more, than he would have done yours.

Limit options while offering appropriate alternatives

Too many choices can confuse customers so limit the options. “When you go to the market to buy two apples, why do you get disappointed when you find only two remaining? So an advert used to ask, and then would give us the answer. “It’s because you want variety” Indeed, variety is the spice of life. But just like spices can also get too hot to consume, likewise too much variety can be annoying and can get ignored-like we do the returns to a Google search-research says few people go past the first page of the thousands that appear.

When it’s too much, suddenly variety isn’t delightful anymore; it is irritating. What to do? Limit the options.

In a restaurant, few patrons are connoisseurs of what they seek and will be delighted (more relieved) by the waiter who recommends a meal for them after a brief interview which goes something like,

BUSINESS KIT: SALES me something different-knowing my love for movies, he explained that the average movie is 700MB in size. That I knew.

He went on to explain that 5mbps means that at that internet speed, I can download a movie in 140 (that’s 700 divided by 5 seconds), or about 2 and a half minutes.

A light bulb of revelation ignited in my head…Aha! So that’s what 5mbps means.

Now, if only instead of using jargon (saying 5mbps) they’d tell me I can download a movie in 2 and a half minutes, even stretched it to “about 8” for good measure; then I’d appreciate what ‘fast’ means and more importantly, the sale would become easier as what’s in it for me would be clearer. Jargon is a gun many salespeople inadvertently shoot themselves in the foot with. And in case you’re wondering, variable resistor is jargon for volume knob.

“Would you like white or red meat?” White.

“Then you will love our fish; or, would you prefer the chicken, Sir?” Notice the options usually given are in twos. Warm or cold?

Red or white? With toppings or without?

Such choices make it easier for the buyer to respond to, and hasten the movement along the sales cycle. Making a choice from an option of two or three things is much more palatable than twenty two or twenty three things. This giving of two options also lends itself to closing. “Would you like to sign with the blue pen or the black?” or “Would you like to pay in cash or via card?” Notice that the questions asked in the examples are leading questions. Irrespective of how the prospect answers them, they move towards a close. The questions are also not entirely closed neither, nor are they too open. If the prospect can’t meet you tomorrow at 2.30pm, or the day after at 6pm, then he will not respond to your query for an appointment with a no. On the contrary, he will give other dates as an option; which still gives us what we wanted-an appointment.

But even limiting the options also needs to be limited. Otherwise when elongated, they can be irritating as in this illustration.

“Excuse me Sir, will the water be bottled or tap?” Bottled. “Carbonated or mineral?”

Mineral. “One litre or half a litre?” Half a litre.

“Warm or Cold?” Warm. “Still or sparking?”

Still. “Flavoured or unflavoured?” Flavoured.

“Mint, passion or garlic?” Mint. “Taking

it away or taking it here?” Arrgh! Taking it here…

Eliminate Jargon and educate where necessary.

I’ve written about jargon here before.

I can write about it again and again until my African face turns blue. I consider eliminating jargon that important in selling.

Using jargon erects walls instead of laying bridges. It runs the risk of making the client feel inferior or embarrassed. It confuses the client and wastes both yours and his time because the conversation is not flowingyou are talking but not communicating. And yes, if it’s one farm consultant (or engineer) talking to a farm manager (or another engineer) about the use of beneficial insects (or variable resistor) and they both use jargon, it is fine. They understand each other. And I’m guessing I’ve just lost you with the jargon I’ve used there, which is my point exactly.

When selling, actively avoid the use of your industry’s jargon. But, by all means, enthusiastically (and hopefully, knowledgably) use the buyer’s industry jargon. One of the ways of overcoming jargon is giving an illustration the buyer can understand.

For instance, I finally understood what internet speeds of 5mbps meant; this seller didn’t tell me 5mbps is “very fast” or means 5 mega bytes per second”, none which I understood. No. This seller told

Educate where necessary “Shaving your hair like that will make your scalp itch unbearably. Hair looks the same from outside but differs immensely within. Yours grows in a spiral fashion from the cuticle, base, thus favouring this other hairstyle which is what I recommend.” And so the man who had walked into my barber’s shop, now wiser, conceded to his advice. Educating the customer is a powerful way to communicate the purchase of a solution. Interestingly, customers do not buy because they have learnt something new. No. They buy because the seller who educates them inspires them with confidence because he comes out as an authority on the subject. Also, the buyer feels cared for, reassured by the depth of repository of the knowledge shared.

The essence of product knowledge isn’t for the salesperson to share it exhaustively with the prospect. No. It’s to be used as a doctor does with the patient. Despite the deep well of knowledge the doctor has, he will offer his patient a sip or two of the water from it based on the symptoms the patient has shared. Imagine what would happen if the doctor emptied the entire contents of the well flooding you with what he knows.

Dazed, confused and irritated, you’d leave sicker than when you arrived. Equally, make it easy for the customer to understand and decide.

Paint a picture sufficient enough to enlighten the buyer and assist him with making a decision.

Many times, this requires the seller to understand the buyer’s circumstances- seeing things from the buyer’s side.

Kageche is the lead facilitator, Lend Me Your Ears; Kageche@lendmeyourears. co.ke www.lendmeyourears.co.ke

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KENYA MARKS 10 YEARS OF M-PESA TRANSFORMING LIVES

A

s Safaricom marks 10years since M-PESA’s launch on 6th March, 2007, a new ‘True Earnings’ Report by KPMG, using KPMG’s ‘True Value’ methodology finds that customers have, by far, been the largest financial beneficiaries of the platform.

KPMG performed an evaluation of the social value created by M-Pesa using social return on investment principles (SROI).

SROI is an open-source, principles-based method used to account for social change created as a result of certain investments or activities. This is one of the methodologies which is central to understanding the ‘true earnings’ of a company or service.

The ten year study of M-Pesa’s impact finds that the social value generated by M-Pesa grew from Sh83 million in 2007, to Sh184 billion by the end of March 2016.

KPMG finds that M-Pesa customers were the biggest beneficiaries of this social value, receiving a return in value ofSh160 billion as a stakeholder group in the financial year ending 2016.

“Although Safaricom earns growing revenues from the M-Pesa product, the social value it has generated for customers continues to exceed the financial benefits to Safaricom in each of the years since its inception,” says Neil Morris, Climate Change & SustainabilityDirector, KPMG South Africa.

In the last decade, Kenyans have established M-Pesa as the world’s leading mobile money platform by leveraging the power of the mobile phone to achieve convenience in different aspects of their lives.

Customers have made savings in time, as well as experienced increased safety and wellbeing as a result of not having to carry cash. KPMG notes that the only negative impact, experienced by a very small number of stakeholders, was a reduction in wellbeing as a result of spending less time with family members, as they no longer need to receive financial contributions in person.

By 2016, each M-Pesa customer had seen social value linked to the use of M-Pesa of Sh9,679 in the course of the year, up from Sh3,202 when the product

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started in 2007.

Over the same period, customers grew from 20,000 in March 2007 to more than 16 million by March 2016, while the value of transactions grew from Sh10.3 million to Sh5.2 trillion over the same period.

“Year after year, the role played by M-Pesa in customers’ lives has widened as Kenyans embrace the platform for a greater number of services. Our sustained investment in innovation and technology has enabled our customers to accomplish their goals. Ultimately, we understand that M-Pesa’s success is underpinned by our customers’ success,” says Bob Collymore, CEO, Safaricom.

When looking at the magnitude of each of the impacts for stakeholders over the last ten years, the true earnings report showed that customers saw 63% of the social value experienced to be connected to the financial resilience that comes with receiving and having control over money. The second largest impact at 30% has been in the time and cost saved in using M-Pesa compared to the alternatives, while 7% of the impact comes from access to credit and ability to purchase goods that customers would not have ordinarily been able to afford.

The KPMG true earnings report complements recent findings by economists from MIT and Georgetown University, who found that M-Pesa has lifted 194,000 Kenyan households – or 2% of Kenyan households – out of extreme poverty .

As a stakeholder group, M-Pesa agents

experienced the second highest social value from M-Pesa at Sh20.1 billion in the year ending March 2016. However, when viewed individually, agents become the greatest beneficiaries of M-Pesa, experiencing an average social value of Sh13,489 each year in the last ten years.

The number of agents increased from 2,000 in 2007 to more than 101,000 at the end of March 2016, with many agents creating entire businesses out of M-Pesa.

Separate findings by Financial Sector Deepening credit M-Pesa with the growth of financial inclusion in the country, which was more than 50 percent in the last ten years to stand at 75.3% of Kenyans in 2016 . The mobile phone is also the preferred mode of savings in the country, with 60% of Kenyans having their savings in services such as M-Pesa, M-Shwari and KCB M-Pesa.

The number of active monthly M-Pesa customers in the country stands at more than 18 million customers. Globally, Vodafone now offers M-Pesa in 9 other countries: Albania, the Democratic Republic of Congo, Egypt, Ghana, India, Lesotho, Mozambique, Romania and Tanzania.

As at the end of December 2016, M-Pesa served almost 29.5 million active customers through a network of more than 287,400 agents in the ten countries.

During 2016, the service processed around 6 billion transactions, peaking in December 2016 at 529 transactions every second.

MAIN STORY

VODAFONE MARKS 10 YEARS OF WORLD’S LEADING MOBILE MONEY SERVICE, M-PESA

A

s Vodafone marks the tenth anniversary of M-Pesa, the world’s leading mobile money service, it was revealed that a record 614 million M-Pesa transactions were processed during December 2016.

Vodafone now offers M-Pesa services in ten countries: Albania, the Democratic Republic of Congo, Egypt, Ghana, India, Kenya, Lesotho, Mozambique, Romania and Tanzania. As of the end of December 2016, M-Pesa served almost 29.5 million active customers through a network of more than 287,400 agents. During 2016, the service processed around 6 billion transactions, peaking in December 2016 at 529 transactions every second.

Launch M-Pesa was launched by Vodafone’s Kenyan associate, Safaricom, on sixth March 2007. The service is designed to enable customers safely and securely send, receive and store money via a basic mobile

phone and, more recently in some markets, using a smart phone app. Customers visit an M-Pesa agent to top up their accounts.

They are then able to use their mobile phone to make purchases in shops and send money to other people who can then visit their nearest M-Pesa agent to withdraw their funds.

M-Pesa also reduces significantly the potential risks of street robbery, burglary and petty corruption within cash-based economies where only a small proportion of the population benefit from access to conventional financial services.

Vodafone group managing director of M-Pesa, Michael Joseph, said: “M-Pesa is a revolution that has empowered tens of millions of people in some of the poorest communities in the world to start and grow businesses and gain greater financial resilience. All of us at Vodafone are very proud of how M-Pesa has enhanced our customers’ daily lives and helped them plan for the future with confidence.”

Advanced banking services for all

Over the last decade, M-Pesa has evolved far beyond its roots in person-toperson transfers. The service now plays an important role in the broader economies of several countries and is used for a wide variety of essential transactions including the payment of household bills and salaries, the distribution of pension payments and the disbursement of agricultural subsidies and government grants. M-Pesa customers can pay for goods and services both at retail stores and online. Services such as M-Shwari, M-Pawa and KCB M-Pesa provide interest-bearing mobile savings and small micro-loans in partnership with banks like CBA and KCB. M-Tiba allows customers to send, save and spend funds on medical treatment at partner clinics and hospitals.

From 2009 onwards, Vodafone began to add international money transfer capabilities to the M-Pesa service. Customers in Kenya and Tanzania can now transmit and receive funds directly across the border, recognised by the World Bank as the most costeffective means of doing so. Vodafone has

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MAIN STORY partnered with Homesend, TransferTo, and MFS Africa to expand money transfer and continues to explore potential relationships with other international money transfer services.

Improving quality of life and saving lives In 2013, the Vodafone Foundation engaged M-Pesa to provide access to essential health services, known as ‘Text to Treatment’.In Tanzania, M-Pesa is used to distribute expenses and hospital transport costs enabling around 1,000 mothers a year to benefit from free surgery to correct the debilitating post-natal condition, obstetric fistula. An emergency maternal transport service utilising M-Pesa-funded taxis in northern Tanzania supports life-critical intervention for around 200 women and newborn babies every month. In Lesotho, mobile health clinics using M-Pesa to fund patient transport are bringing primary care and mother and child HIV services to 200 rural villages for the first time.

Andrew Dunnett, director of the Vodafone Foundation, added: “M-Pesa is a critical component of many of the Vodafone Foundation’s core health services, such as the Text to Treatment services we have

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launched in Lesotho and Tanzania. These services dramatically improve quality of life and in many cases, save lives – particularly in some of the remote and isolated areas that we serve.”

According to a recent study conducted by the Massachusetts Institute of Technology ( MIT) and published in the journal Science, M-Pesa has had a dramatic impact on the overall economy in Kenya – lifting some households above the poverty line and particularly benefiting families headed by women. In one notable example, poverty fell by 22% within a kilometre of where six M-Pesa agents opened between 2008 and 2010. In Tanzania, financial exclusion was lowered by 50% as a result of mobile money services (source: Finscope 2013).

The M-Pesa Foundation, established in 2010, is an independent charitable trust investing in projects that improve the social and economic status of Kenyans. Funded

by M-Pesa, it has supported a number of large-scale health, environmental conservation, education and water projects - including the M-Pesa Foundation Academy, a boarding high school serving talented but disadvantaged Kenyan students with demonstrable leadership potential.

Key milestones in the development of M-Pesa include: • March 2007: M-Pesa launches in Kenya • Nov 2007: M-Pesa reaches 1 million active users • April 2008: M-Pesa launches in Tanzania • Sept 2008: M-Pesa reaches 4 million active users • Aug 2009: M-Pesa partners with Western Union to allow customers to receive money from the UK • June 2010: M-Pesa reaches 10 million active users • Sept 2010: M-Pesa launches in South Africa • March 2011: Safaricom and Western Union reach global agreement to allow M-Pesa customers to receive international money transfers from 45 countries, including the US, Canada, Italy and the UK. • Jan 2011: LipaKaro allows learning institutions to receive school fees via M-PESA. • Nov 2012: M-Pesa launches in Democratic Republic of Congo.

• Nov 2012: Savings and loans service M-Shwari launches in Kenya, reaching 2.3m subscribers in 4 months.

• 2013: Vodafone Foundation engages M-Pesa to provide access to essential health services through ‘text-to-treatment’ • April 2013: Vodafone and ICICI Bank launch M-Pesa in India where hundreds of millions are unbanked • May 2013: M-Pesa launches in Mozambique • June 2013: M-Pesa launches in Lesotho • June 2013: Vodafone Cash launches in Egypt.

• June 2013: Lipana M-Pesa launches, allowing consumers to pay merchants and retailers for goods and services using M-Pesa • March 2014: Vodafone M-Pesa launched in Romania, marking the first time the service is available in Europe.

• May 2014: M-Pawa launches in Tanzania • March 2015: Ma-Pesa launches its first international money transfer corridor between Tanzania and Kenya •May 2015: Vodafone M-Pesa launches in Albania • Dec 2015: Vodafone M-Pesa launches in Ghana.

• 2015: Vodafone establishes a global framework agreement for M-Pesa to deliver interoperability, enabling M-Pesa customers to transact with other services and across borders • 2016: The World Food Programme uses M-Pesa to help deliver their food aid programme in Kenyan refugee camps.

• April 2016: M-Pesa reaches 25 million active users.

• June 2016: Safaricom opens M-Tiba health payment platform in Kenya.

BUSINESS BY CHANCE TURNED

GIANT Julius Kiragu’s journey as a partner with Safaricom attests to the significance milestones of M-Pesa

Julius Kiragu, director, Wabcom Technologies.

By Caroline Mwendwa

B

ig enterprises aren’t always a result of long term planning.

Sometimes they happen by chance. Julius Kiragu’s journey to establishment as a Safaricom dealer is a case in point. Just a glance at a T-shirt donned by an M-pesa agent somewhere in Nakuru was enough to intrigue his business appetite. And to his relief, all he required was Kshs30, 000 and he was good to go.

The Kenyatta University bachelor of education graduate was running a bureau for printing and photocopying services on Government Road in Nakuru, when this chance happened and turned his life around for good.

“I was operating my bureau of photocopiers and printers when a young man wearing a Safaricom T-shirt visited. He informed me about M-Pesa, a new product in the market and asked me to register considering our prime location.There was no turning back. I was instantly hooked and wanted to start immediately. Several years into mobile money business, Mr Kiragu quit his earlier business to concentrate on M-Pesa. “For starters I began as a sub agent but later established my own

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business as an agent operating directly with Safaricom.”

At the time, M-Pesa was still a new concept and Safaricom was facilitating agents to campaign and popularise it.

“Agents would set up publicity desks where willing customers would come for registration which was a requirement for anyone to transact via M-Pesa,” says Kiragu.

“Even though the cost of entertainment and setting up the sales team was catered for by the agent, Safaricom was taking care of the giveaways with which we wooed the customers and to motivate us, there was commission for every customer registered.

We went as far as approaching people at the bus station just to bring on board as many of them as possible,” he adds.

However, at first, people did not grasp the convenience that came along with M-Pesa.

Prior to M-Pesa, people did money transfers especially to the rural areas through the public service vehicles operators. When M-pesa was introduced, there were doubts about the safety of these transactions and more people had to experience it and testify of its credibility before it was fully accepted.

It is important to note that the tremendous growth that followed after this phase was solely due to customer demand. When people got a clear understanding of how

M-Pesa works, the demand was so high, it outdid the resources I had at the time,” Kiragu happily recalls. Even Safaricom had projected only a quarter of what was achieved.”He recalls the post-election violence period as the time of awakening when people got to appreciate the need for M-Pesa in a crisis because money required to be sent in the fastest way possible.

Expanding the business Kiragu realised that there were so many people in need of M-Pesa services. He had to expand to cater for the overwhelming customer demands. “The more float one had, the more business he would do.

In this business, the float is like goods in a kiosk, with little float, there will be less transactions. And so I invested more capital and would later add more employees to tap the opportunity.” However as Kiragu clarifies, Safaricom has now mitigated the challenge of running out of float by partnering with banks who offer the same to agents with Safaricom as the guarantor. He also acknowledges that M-Pesa operators need to distinguish between deposit and withdrawal times. “In the rural for example, there are more withdrawals than deposits, while the urban has more people depositing than withdrawing,” Kiragu observes. He

MAIN STORY first opened branches in Nakuru, Embu and Meru and registered his business as Wabcom Technologies dealing not only as the M-Pesa business, but also as an outlet for selling phone accessories, air time and data.

Today Wabcom technologies operates from 200 outlets located in different counties across the country.

Apart from adding the number of branches, Kiragu realized the need to structure his business. “At first I used to hire people without any criteria. Today we do due diligence such as asking for a certificate of good conduct and filling a guarantor form.”

Kiragu heads the business with his wife as a co-director. “For people to perform well at their stations they require training. “My wife quit full time employment to take care of human resource at Wabcom Technologies and this has positively impacted the output.” The business is now headed by two directors, national administrators and at the county level, there is a supervisor.

The company has employed about 100 employees to assist in sales of airtime and data.

Technology “M-Pesa has evolved greatly since its launch. At first, it was basically transfer of money from one person to another.

Currently, it is about transfer of money from business to business or customer to business.”

One major phase that was of great significance in this evolution is when customers slowly started to use M-Pesa as a bank. “Small scale entrepreneurs would come daily to deposit money after a day’s sales. This assured them that their money was secure and this trend has grown over time.”

Wabcom Technologies has for instance partnered with Tuskys Supermarket for seven years. “We have been doing money transfer in over 48 branches across the country.”

Lessons learnt “If you concentrate in a business, there is a high likelihood of success,” advises Kiragu pointing out that business is a process and one has to structure it right, besides tapping the right talent.

His advice to young entrepreneurs is that they should empower themselves (especially through reading business books) and seize opportunities created by

networking to build solid businesses.

Milestones Having established himself in the business and made satisfying milestones, Kiragu now intends to mentor other aspiring business people especially through online writing. He acknowledges Safaricom’s input in his business acumen and wishes to give back in the same way. “Safaricom has been highly instrumental in this business through training sessions as well as mentoring.They trained us on using courier services for security, how to structure our business and taxes,” says Kiragu.”Having gotten much of what he would have loved, he has settled on aggregator module — a sub agency system that authorises small operators to use his name and incentives and then share the commission earned.

“We realised we cannot grow and manage shops in the interior as well. And for us to grow and remain effective we entered an agreement with small shops where they get the capital and location but we manage the business. Here they enjoy our strength in case of shortage of float since most of their outlets are withdrawal centres compared to those in urban centres where there is more depositing.”

Over the years, Wabcom Technologies has won several awards because of its exemplary performance in conducting the M-Pesa business.

Meet the boss • Currently reading: Good to Great by Jim Collins • Hobbies: Travelling and sight seeing • Father of five

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AN OUTLOOK OF THE LOCAL MANUFACTURING INDUSTRY The slogan ‘Buy Kenyan, Build Kenya’ is a common one, but barely in action. The local manufacturing sector has a pivotal position in the country’s development, but consumers have to make a deliberate choice to support it. Biashara Leo magazine engages the local manufacturers’ lobby, Kenya Association of Manufacturers to shed some light on the dynamics of this industry. Excerpts herewith:

By Caroline Mwendwa BL: Tell me about the role of KAM as a lobby of local manufacturers?

KAM: KAM is the voice for the manufacturing sector in Kenya. We use fact-based policy advocacy to champion for an industrial transformation for our country in order to create a sustainable economy for future generations.

Competitive manufacturing is all about creating an enabling business environment and that is what KAM strives to achieve.

An enabling business environment has trickle effects on the economy such as job creation and prosperity in the long run.

Each year, we develop a Manufacturing Priority Agenda highlighting the most burdensome challenges facing our local industries which need to be addressed to make Kenya more competitive. The agenda is developed from engagements with our members and observations of emerging public policy as well as other regulations

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and review of the business environment.

In 2017, we organized the Agenda under the broad theme of ‘Driving Industrial Transformation for Job Creation and inclusive Economic Growth’. This is informed by our deep conviction that manufacturing is critical to the transformation of Kenya and creation of new jobs in addition to assisting the government deliver on its promise to the Kenyan people.

We have further collated the agenda into five pillars which, if strengthened will lead to a more competitive environment for the whole industrial sector resulting in economic gains for the country.

Top on our agenda is the need for a regulatory policy framework that addresses the concerns of the manufacturing sector.

We would like to see both the national and county governments address the issues raised so far with regard to national policies, county revenue laws, levies and charges.

The other four pillars include level playing field for manufacturing in Kenya,

Competitive local manufacturing sector, making Kenya a manufacturing hub for exports and securing the future of industry.

BL: What role is the government and other stakeholders playing in promoting local industries?

KAM: Through the industrialization programme, KITP, the government has demonstrated high level commitment towards revitalization of the manufacturing sector. We take this time to acknowledge and appreciate the commitment by the government to support the manufacturing sector. Through the KITP the government is focusing on increasing the revenue from the manufacturing sector to over 15% of the GDP, create one million jobs in the process, increase FDI by 5 times and improve Kenya’s ranking in the ease of doing business to top 50 by 2020.

There is improvement of the regulatory environment in the wake of a devolved system of Government in Kenya.

The expansion as well as improvement of

FEATURE infrastructure include: projects to improve on the transport infrastructure such as the construction of the Standard Gauge Railway (SRG) which will efficiently link the coast and the interior and the generation of an additional 5000 MW of electricity to drive down cost of electricity. The port of Mombasa has also been expanded, the LAPPSET (Lamu Port/South Sudan/ Ethiopia Transport Corridor Programme) is on course and the government is creating lucrative incentives for local and foreign investors such as the industrial park in Naivasha.

BL: Tell us about some of the interventions KAM has made for the local manufacturers?

KAM: A lot of gains can be highlighted which point to the success of our advocacy work over the years.

The reduction in the number of licenses, introduction of Single Business Permit, our engagements in expanding our markets is evident through EPAs and extension of facilities such as AGOA which ultimately lead to massive job creation.

KAM has played a lead role in the war on counterfeits and other forms of illicit trade in Kenya and the EAC region. Initially, KAM advocated for the successful enactment of the Anti-Counterfeit Act 2008 and its Regulations, which provided for the establishment of the current Anti Counterfeit Agency (ACA) in June 2010.

In 2014, the NCAJ was tasked to work hand in hand with KAM in order to develop an enforcement manual to deal with the vice. By the end of 2014, this committee (NCAJ and KAM) had come up with a well constituted point of reference now known as theEnforcement Manual to Combat Illicit Trade in Kenya (and popularly known as Illicit trade manual). About 2000 copies of the manual have so far been printed and widely distributed to various key stakeholders within and without Kenya.

BL: To what extent are consumers supportive of local manufacturers?

KAM: Preference of imported products has for some time eroded local manufacturers’ market share.

The ‘Buy Kenyan Build Kenya’ policy is yet to be fully actualized as steps are currently being taken to implement it starting from the 40% preference for local product purchases by ministries, departments and agencies.

There is need for a change of mindset by consumers that imported goods have better quality.

BL: What are the trends in the local manufacturing industry?

KAM: To start with, manufacturers have listed the forthcoming general elections as the top most issue of concern that

will hamper growth this year due to uncertainties. Investors are most likely delaying to start new projects or put more money on the existing ones until after the elections.

Peaceful elections will indeed play a critical role in the growth of the sector particularly in the county governments.

The second is the Banking Act 2016 that capped the interest rates. Since it came into effect, the relationship between private sector credit and economic growth is not clear.

So far, the interest cap has locked out some small and medium enterprises (SMEs) since some commercial banks are reluctant to lend to borrowers perceived as high risk. This was definitely not the intended consequence of the interest cap but that it is happening means we need intervention on this matter in order to allow SMEs and the manufacturing sector as a whole to thrive.

BL: What would you say about the growth of local industries?

KAM: The growth in the Kenyan manufacturing sector in the last one year has been on a downward trajectory (the rate was 1.9 percent in the last quarter of 2016). Indeed, our economic growth has slowed down in three out of five past election years, with an exception of 2013.

Our value addition is fairly low, meaning the manufacturing sector has a lot of opportunities for growth. The sector is stagnant because we have open markets – and goods are moving freely across the world. Therefore, we have to be more competitive as a country.

Reliable power supply will also boost productivity and production. We acknowledge and appreciate the work that the Government of Kenya has done so far in supplying reliable and cheap energy. With a major component of the energy mix being from renewable sources, the cost of energy in Kenya has since dropped from US¢ 18.7/ kWh to the current US¢ 15/KWh. Kenya now sits in the league of the top 10 world’s largest producers of geothermal energy.

However, a lot still needs to be done.

Partnerships have been formed with institutions such as the judiciary which has led to the development of the Illicit Trade Manual for combating illicit trade. There is increased momentum in rooting out counterfeit goods.

KAM is also engaging with the Commission on Revenue Allocation (CRA) in addressing trade related challenges within and across counties. Through the KAM/CRA partnership, draft revenue laws and policy guidelines have been developed to guide in the drafting of county revenue laws to ensure that business is facilitated to

be more competitive by the counties. The uptake of the legal and policy guidelines by the counties is very encouraging.

BL: What gaps are there in the local manufacturing industry?

KAM: There is an increasing demand for skilled workers in industries in Kenya with demand for improved quality of goods and services that meet international investor standards.

We launched a TVET (Technical and Vocational Education and Training) Project in partnership with GIZ in January, 2017 to address this gap. The project will improve access to technical and vocational jobs and economic opportunities for the youth in Kenya.

We will work with manufacturing industries, TVET Institutions, the government and government agencies in charge of technical and vocational training.

The project will place over 500 technical and vocational graduates on internships in various industries and consequently create jobs, besides providing refresher training to industry employees based on identified skills gap.

BL: What are the challenges facing local manufacturers?

KAM: The value of Kenya’s manufacturing sector has stagnated at 10 per cent of the country’s GDP for at least 10 years and we are looking to growing it to about 15%.

IMF highlighted that though the drought and slow credit growth may have been affecting this growth, the economy is likely to remain within the 5-6 per cent range of the past five years.

Kenya is losing her competitive edge due to high cost of energy, influx of cheap goods and counterfeit goods among others.

In addition, local companies have to deal with increased taxation, multiple levies and charges and other non-tariff barriers, basically an inconsistent regulatory environment, that in the end impacts their pricing.

However, we are hopeful that the sector will pick up pace and create more jobs, increase productivity and consequently, increase our country’s GDP. BL: What should we expect from the local manufacturing industry in the future?

KAM: Innovation through more research and development in the sector will be imperative so as to create unique products and create a unique selling point for locally manufactured goods. There will also be the need to expand external markets through the diversification of products.

With the push to ensure that our learning institutions produce graduates fit for industry in years to come, we will have the right skill set for industry.

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FEATURE

KENYANS LIKE TO CHEER THE BAKERS ON, BUT WON’T VOUCH FOR THEIR CAKE Players in local manufacturing industry speak out on why they are hard-pressed in operating their business former averaged Kshs. 5 billion.

In 2016, China supplied Kenya with railway construction materials, including steel, worth more than Kshs. 13 billion.

Meanwhile, local steel manufacturers face tough times as cheap steel from China keeps them out of business, forcing massive layoffs.

Kenyan women weaving baskets.

By Caroline Mwendwa

I

t is saddening to walk in a government office feeling so Kenyan and proudly so, only to be served tea alongside imported serviettes. The buy Kenyan build Kenya slogan has so often been scorned by such experiences and it is up to the Kenyan consumers and policy makers to cleanse and actualize it.

While manufacturers and intermediaries in the supply chain would like to take up this clarion call, their unrewarding efforts to do so have eventually been turned them off.

James Waeni sells shoes in one of the many stalls along Price Road. He thrives on narrow margins, the reason why he makes journeys to China to get his products at a fraction of the local price. It does not help that shoes can be easily manufactured locally.

In fact, a spot check in Nairobi’s Industrial Area reveals that a local shoemaker has slowed down production due to slow sales as wholesalers and retailers continue with their exodus. Waeni knows very well that going for cheap imports kills local manufacturing, but for now, he says it

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makes business sense.

“China-made goods are fast moving compared to the locally made ones. They fly off the shelves simply because of the cheaper price tags,” says the youthful entrepreneur. He is just one of the many business owners who are travelling to China to buy manufactured goods at a cheaper price, despite rising concerns about the quality of the products.

“It has become expensive to do business in Kenya because of costly inputs. Power is expensive compared with our competing countries like Egypt,” explains Dr XN Iraki, a University of Nairobi lecturer.

Due to the high cost of doing business in Kenya, he adds, multinational firms have no other option but to shut down their manufacturing units as they look at importing their products from their affiliated firms in other countries, a less costly alternative. It does not help that Kenya’s bilateral trade with China is tilted in favour of the latter.

According to data from the Kenya National Bureau of Statistics, the value of imports from China was Kshs. 320bn ($3bn) in 2016, while Kenya’s exports to the

Way forward Analysts say that Kenya should reevaluate her taxation decisions with regard to value-added tax, industrial development fees and the railway development fund, as they stifle local production, making locally made goods more expensive than imports.

Kotni Rao, head of the steel sector at the Kenya Association of Manufacturers (KAM), proposes a dumping duty on cheap imports to avert the trend.

KAM recently launched its Manufacturing Agenda 2017 programme, which seeks to increase the sector’s contribution to the economy by 1.6% every year for the next three years. It calls for investment in technical skills, creating a nurturing environment for SMEs with a special emphasis on women and youth enterprises, and making Kenya an export hub thereby increasing the competitiveness for local business.”

Local e-commerce giant, Jumia Kenya, recently rolled out an online store dedicated to selling locally made products. But a lot more needs to be done to revive the sector.

For policies to have an impact on this trend, they have to be properly implemented.

For example, the government campaign that aimed to ensure increased production and consumption of locally manufactured goods and services from June 2015 has fared poorly because its implementation was not well undertaken. The policy stated that 40% of all goods and services procured by the government at all levels should be locally produced. Two years down the line, there is barely any achievement to that end.

Kenya is a rapidly growing country and if the local manufacturing industry was revitalized to its full potential, this would be a stellar economy due to the added benefits of job creation and an increase in GDP.

INTRODUCING

BIASHARA LEO DIGITAL http://biasharaleo.co.ke

BUSINESS NEWS 24/7

Ben Ndegwa, MD, Geminia Insurance.

GEMINIA INSURANCE: KEEN TO TOP THE TIER Find out why Geminia Insurance is buoyant in its vision to be the preferred service provider for Life and General Insurance

By Caroline Mwendwa

S

ince 1982, when it started operations, Geminia Insurance has proved to be a dependable provider of quality insurance services in the region. It currently operates through seven branches based in Nairobi, Mombasa, Eldoret, Kisumu, Kisii, Nyeri and Meru and plans to open other branches in

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major towns and the East African region.

“We began with the general insurance and later diversified to include life insurance,” says Ben Ndegwa, the CEO of Geminia Insurance. Its growth is evident in the increase of premiums over the years. “From very little premiums, the wholly Kenyan owned insurer has grown to a total of 2.3 billion in General Insurance and about Kshs 100 million in Life. This depicts a steady growth as in the previous year 2015, the

premium turnover stood at 1.7 billion.

One of its first class of covers is marine cover. “Our marine cover is fully developed as this was one of the first products that we offered,” asserts Ndegwa. With the recent enactment of the Insurance Act requiring all importers to buy local covers for the imported goods, Geminia looks forward to an increased uptake of marine cover.

As Mr Ndegwa elaborates, Geminia Insurance has proved competent enough

FEATURE: MARINE INSURANCE to attract a high number of customers seeking marine cover. Last year, the company recorded a total of Kshs 64 million from marine cover only. This was however a decline from the previous year’s Kshs 78 million. “In 2017, we are targeting an increase to Kshs 200 million,” says Mr Ndegwa.

While various opinions have been expressed about the capability of local insurers to handle marine cover, both for cargo and hull, Mr Ndegwa says there is sufficient capacity to cover all consignments regardless of their value. “The nature of the insurance industry allows for transfer of risk, whereby an insurer through reinsurance treaties/programs with re-insurance companies is able to purchase any amount of cover,” he says explaining why local insurers should not be underestimated in terms of their capacity to handle marine cargo insurance.

For a company to be well equipped for marine cargo insurance, it has to have a good reinsurance programme and a functioning underwriting department.

Geminia is backed by internationally rated re-insurers and programmes are designed by leading international reinsurance brokers. The reinsurance companies that Geminia has partnered with include: Africa Re, Kenya Re, PTA Re, East Africa Re, Lloyd Underwriters and Swiss Re. What makes Geminia stand out?

Throughout the years, Geminia has exhibited strengths in its financial base as well as asset base. A year ago its asset base was over Kshs4 billion. Financial strength aside, the products at the disposal of Geminia Insurance customers are in varieties. Its products come in five classes. They include: property, accident, liability, motor and life. Under property classes, Geminia insurance covers the following risks: fire and perils, engineering, industrial, machinery breakdown, erection, contractors, marine hull, domestic package, electronic equipment, political violence, terrorism and sabotage.

Accident classes include: burglary, money, fidelity guarantee, p e r s o n a l / g ro u p personal accident,

goods in transit, marine cargo and plate glass.

Liability classes include: public liability, professional indemnity, Work Injury Benefit Act (WIBA), Employers liability, Directors and Officers liability and Trustee liability.

Motor classes include: private car, commercial, school buses, general cartage and tankers, car hire (chauffeur driven), motor cycle, pedal cycle, agricultural and forestry vehicles.

Life products are in two categories: ordinary life and group life products. Under ordinary life products there is: protection policies, investment policies, and education policies. Under group life products there is: group life policies, group creditor, mortgage protection and funeral cover. They have come up with a brand new life product that ensures a guaranteed return of 8% per annum on any amount invested under the plan.

Another distinctive factor about Geminia Insurance is its accessibility across the country. “We have service providers and networks across the country; broker and agency networks as well as garages, loss adjusters and investigators,” explains Mr Ndegwa.

Its uniqueness is also reflected in the additional benefits its customers are entitled to. For instance, motor vehicle insurance, domestic package and personal accident products have a life cover embedded in them. This cover pays for death of the insured from any cause including illness “Even with such double benefits, our policies are still reasonably priced.”

Hurdles As more and more insurance companies join the arena, competition for the unchanging market is being felt. However Mr Ndegwa appreciates that competition takes care of the customers’ needs as it is an impetus for companies to improve their standards and serve customers better.

Secondly, the contemporary market is one that is overtly aware of their rights and may at times have expectations beyond applicability and such can result to losses especially in motor insurance.

Another hurdle that insurers are endlessly battling with is the issue of fraud. Just like any other business involving massive transactions at a go, insurance is not immune to fraud. “This is why due diligence is necessary to ensure that a client gives complete information before engaging in business,” puts Mr Ndegwa further adding that technology can also help to detect and eradicate fraud.

Outstanding premiums have also become a hitch in insurance. Customers’ failure to pay premiums up front is a derailing factor. To solve this problem, Geminia has partnered with banks where customers can go to the bank, and pay easier installments at reasonable interest rates.

Aspirations Despite the many strides the insurer has made over the years, there is still so much underway. “We have an ambitious strategic plan envisaging a growth of about 55%,” he says.The target figure is Kshs 3.4 billion premium in 2017.

“We are also planning to open more branches locally and regionally and while at it, we are improving our services,” adds Mr Ndegwa.

As would be expected, the directive obliging importers to buy local covers for the imports is more than welcome by Geminia. “We appreciate the CS’s directive since most people didn’t know much about local insurance especially importers.

This move will increase local consumption of insurance policies and therefore contribute towards growth of companies in this industry and the country at large.”

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A PENCHANT FOR THE PEN Ng’ang’a Mbugua may have crossed the ocean on a thin, feeble line, but he surely made it to the other side and occupied the throne

By Caroline Mwendwa

S

pending childhood with grandparents would turn Ng’ang’a Mbugua’s interest to a career. The well told folklores and tales never left his mind even when his wit grew into adulthood. He would later become an award winning author of fiction and a harbinger in children literature.

His love for stories made his parents buy him storybook after storybook and when for the first time he heard of Ngugi wa Thiong’o, a renowned Kenyan writer he wanted to follow his steps. “I kept this dream alive all through the years, and would script stories that would never see the light of day but still remain clear in my mind.”

When in form two, Mbugua won a poetry competition with Maisha Bora and took home a note of Kshs. 50. This fueled him to showcase his written pieces and in 1991, he wrote the first letter to the editor of 'Now' magazine, a publication of The Standard at the time. In 1994, he wrote his first article that was published and from it, he earned kshs. 4, 000.

With the realization that he needed to type his work, Mbugua trained in typewriting, a course that was rarely done by students then. “Thanks to that decision, today I can type as fast as I can think.”

Discipline It was not until his third year in high school that he completed his first novel and after form four, he started writing a series of readers. “Back in high school I was a scout and that helped a great deal in instilling in me discipline and focus,” adds Mbugua.

For the undergraduate studies, Mbugua was admitted at Egerton University to pursue English, Literature and Philosophy.

Down the road, he dropped English to major in Literature and Philosophy. “My

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Ngang’a Mbugua, writer cum journalist.

studies in Philosophy have come in handy in helping me develop plots for my stories,” he quips.

Mbugua has held the dream to become a renowned writer all through. Indeed, the many fiction works he has worked on can attest to his passion for writing. He however says that despite his talent and passion in writing, he realized that he could not make a decent living purely from writing books. He had to have a backup plan, and that is how his degree landed him a job as an editor at the Nation Media Group while still being a writer on the side of journalism. “I write my books during my free time, especially at night.

Journalist cum writer “While being a journalist is not tantamount to being a literary writer, the two roles are

complementary,” explains Mbugua. For example, my Wahome Mutahi’s literary prize winner, ‘Terrorists of Aberdare, is a product of a story I was editing about a young man who was attacked and killed by bandits.

The news created many other texts within it and that is how I developed the story.”

Mbugua explains how a brief narration of real events at his editorial desk, can spur an entire storyline that would constitute a novel. “In a nutshell, journalism exposes me to so many issues and that way, I can write stories that people can relate to and even while reflecting the society, show possible solutions.”

Mbugua points out that the nerve of a story is how well it is written and its ability to anchor the reader through in a make believe power that makes them wait with bated breath for the next occurrence.

CAREER GROWTH

“Journalism is literature in a hurry. You create so many stories from happenings and while at it, perfect the skill of writing.”

According to Malcom Gladwell, the author of 'Outliers', for one to become a world class writer, he or she has to do ten thousand hours of practice. Mbugua uses his profession as a journalist to achieve that.

On challenges It takes a positive mind to see opportunities in challenges. It is common knowledge that publishing a book especially as a beginner can be an uphill task of back and forth with publishers before a manuscript is accepted and actually edited for publication. Mbugua is no greenhorn to these difficulties. In fact, his journey would have been quite different were it not for rejection by publishers.

“I took these hurdles in stride and did not allow them to put off my flame,” he says.

When ‘The Terrorrists of Aberdare’ could not be published, he did not just ditch it and change his dream, he had it published.

Being an editor, he had done the best to

stories

My studies in Philosophy have come in handy in helping me develop plots for my

cross the t‘s and dot the i’s , but he still hired a third eye to clean any shade, and later printed the book. “Marketing may have been a tall order, but it’s a tall order for everyone, even the traditional publishers."

The book could well be an icon of the biblical rejected stone that later became the corner stone when it scooped the Wahome Mutahi Literary Prize. Since then, Ng’ang’a Mbugua became a hallmark in self –publishing. His idea would later grow into a publishing firm that is still in the offing;

Big Books Limited.

One of the major lessons Mbugua learned from lacking capital is that even if he had to seek financing from a bank for the first publication, this need not be the routine every time he is publishing. He has learned that from the sales of the first book, he should be able to cover the costs of the next one and says this is worth noting if someone aspires to be a successful writer especially in self-publishing.

He has published fourteen other books, two of which have been nominated for literary prizes before. He has more in the pipeline and hopes to have them published by end of the year. His book, 'Different Colours', is being used by Daystar University and the University of Nairobi to teach literature.

“I say challenges are opportunities in disguise because were it not for the rejection I faced while starting up, I would not be recognized as a writer. It was only after I went out to self-publish and submit my book for competitions that I gained recognition as a writer and even got invitations to speak to university students. And since then, publishers have been requesting me to give them my work.”

Today, through the Big Books company, Mbugua also writes biographies and provides editorial services for writers. He however admits that running a publishing firm requires structures that can outgrow the owner. Putting them in place requires capital and other resources that he has not yet acquired.

His advice to young entrepreneurs is that wealth is what you make when you add value in other people’s lives. To budding writers, Mbugua insists that writing is rewriting. To become a good writer, one has to have persistence, and ensure that the writing is of good quality. In order to achieve that, one needs to read works from the best writers.

Meet the boss: • 43 years old • Married for seventeen years • Father of two sons • Uses Friday evenings to unwind • Spends Saturdays with family

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GEA apprentices pose for a photo with MKU staff.

MKU’S GRADUATE ENTERPRISE ACADEMY: EQUIPPING STUDENTS BEYOND ACADEMIC FRONTIERS

By Caroline Mwendwa

“

The public sector is not creating enough jobs to match the numbers of youths completing university education and entering the job market every year. In the past, the government was the biggest employer. But with the freeze on employment in the public sector, except for a few critical areas, young people are graduating into unemployment. Even the private sector is not creating jobs at the desired rate.” These are the words of Prof.

Simon Gicharu, the founder and chairman of Mount Kenya University.

To help solve this problem, Graduate Enterprise Academy (GEA) was launched in 2013 as a vehicle to inculcate an entrepreneurial culture in young graduates in order to prepare them for self-employment.

GEA focuses on graduates who have startups. These are creative young people with the potential to have an impact in their areas of interest.

In 2014, nine graduates who were the first cohort of the programme joined a residential entrepreneurship training programme between February and May which they successfully completed. They were given seed capital and are currently

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in the world of business creating jobs and growing our economy.

Two years later, in April 2016, some 15 others enrolled in the programme.

They have undergone practical training and mentorship in business through a well-planned mix of three weekend bootcamps as well as digital incubation through mentoring and networking spread over six months. They recently graduated in a pomp and colour event graced by Family Bank’s CEO David Thuku as the chief guest. Among those present at the event were the board of directors’ representative, Mr. John Ruigu, the vice-chairman, MKU’s university council, Dr. Vincent Gaitho, the vice chancellor, Prof. Stanley W. Waudo as well as members the university’s Senate.

This group was the second cohort of the academy since its launch in 2013.

“Mount Kenya University has prepared you beyond academic fronts to be competitive graduates,” said Mr. Thuku while congratulating them for having made the choice to join the university. The fifteen graduates of the academy are MKU’s alumni.

Partners of GEA Graduates Enterprise Academy is a culmination of many hands. Various

organisations have been sending professionals to mentor the trainees during the boot camps. Some of these organisations include: Family Bank, Stima Sacco, Wadhwani Foundation and Equip Africa. Some of the alumni of the academy also played a great role in influencing and inspiring the recently graduated cohort.

Expansion Speaking during the event, Prof.

Peter Wanderi, MKU’s director of quality assurance, linkages and partnerships said that there are plans to expand the academy. “There is capacity to hold up to a hundred trainees but we have had a challenge of bringing them on board,” he observed. “We shall commit about 50% of the space to the MKU graduates and the other 50% can go to graduates from other institutions,” he added.

With the realisation that not all entrepreneurs are university graduates, the academy is also opening doors to other institutions and plans are underway to have them enrolled.

Among the partners who have come on board include the Makerere University, an institution that is already studying what MKU is doing so that it can follow suit in expanding its entrepreneurship programme.

SKILLS DEVELOPMENT

Apprentices showcasing their businesses to the chief guest.

Makerere has already established an entrepreneurship incubator that with serve not only the people of Uganda, but the entire East African region.

Apprentice exhibitions The apprentices had the opportunity to exhibit their businesses during the event which ranged from: real estate, pastry, medical services and information communication technology (ICT).

They begun these businesses as early as their university days and with the insights from the academy, they have nothing but appreciation and anticipation to grow to the next level.

THE 2017 COHORT The 2017 cohort consisted of fifteen apprentices all of whom are running different kinds of business. The group symbolises the unifying power of the initiative as the apprentices hail from various parts of the country: Rift Valley, Central, Eastern and Western regions.

Joseph Musembi who hails from Kitui, runs a water bottling firm alongside biodiesel production. He is alumni of MKU and a graduate of medical laboratory services.

His undergraduate course comes in handy in his water bottling business, as it touches deeply on water analysis.

His business venture BenPlast investment

is a solution to the water crisis experienced in some parts of Ukambani and Embu. “I started this business in 2015 and registered it in 2016,” says Musembi. “The main reason why I ventured in this business was because during the dry season, people don’t get fresh water and they have to fetch the same from boreholes,” he adds.

Musembi started this business from his small savings and a loan of Kshs. 300, 000 from Stima Sacco. He used the said money to purchase the requisite machine worth Kshs350, 000. From this capital, he has been able to maximise profits to the tune of Kshs1 million in terms of income and assets.

“In a day we produce 300 crates of water depending on demand which we supply to parts of Mbeere, Kitui and Machakos.”

Musembi has expanded his venture and employed seven employees four of whom serve inside the facility. He has one driver and a marketer. Whenever need arises, he employees casual workers.

Apart from water bottling, Musembi also runs a bio-diesel production business. “I have a farm where I grow sunflower from which I produce oil that we process further to produce bio-diesel.” This bio-diesel goes a long way in cutting costs as it is used in transport and distribution of the bottled water.

Despite the fact that his business is a

Joseph Musembi demonstrates how a hand held machine works.

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SKILLS DEVELOPMENT

Winnie Wanja.

Dismus Kiplagat.

Jeremiah Chirchir.

start up, Musembi uses technology to cap the bottles. “I went searching the internet for a machine that can save me the time and labour of capping the bottles, and I found this,” he says demonstrating a hand held capping machine that can cap 900 bottles in a minute with minimum effort. Thanks to this technology which he imported from China, Musembi has cut on the cost of engaging five employees and he can now finish up the process much faster.

while still a student. His business idea has expanded since and is now registered as a limited company dealing in: outside catering, events management, cakes and cocktails, all thanks to Graduate Enterprise Academy from where he has gained highly enriching ideas on how to grow it. Gibson’s Africa Ltd is based at Mwiki, Kasarini in Nairobi.

Dismus Kiplagat, the entrepreneur behind ShambaPro app that helps farmers understand profits and losses while providing an analysis that allows for informed budgeting, says GEA has been highly educative in helping him expand his market base. As a result of the insights he gained from the academy, Kiplagat plans

to create more applications to serve his customers.

Jeremiah Chirchir from Nandi County has been running his car wash business since 2013. “I have paid for my university education from this business and GEA has been an eye opener,” says a grateful Chirchir citing the marketing skills he has learned from the academy that he hopes will help boost his business. He plans to expand his working space and establish technological systems to do the washing which will help cut the cost of employees.

He currently works with twelve employees.

Kandells is the founder and director of Cruise International which offers home building solutions using interlocks. “I realised that there is inadequate housing solutions in Kenya and thought I could fill this gap using hydroform technologies which is cost effective and ecofriendly because it uses soil and cement to make building blocks,” he explains. He however laments of Kenyans’ poor adaptability to new technologies and hopes this situation will improve with time. He attests that the Graduate Entreprise Academy is a spinner and with the skills gained during the boot camps, he is now better prepared to face the challenges that come in his way.

Esther Nthige from Kirinyaga county is counting her blessings after going through the GEA training. Her rabbit keeping business is set for greater heights. “I have learnt so much from GEA right from how to manage my business, to record keeping and financial management.”

Naomi Mwendwa from Meru county runs a grocery distribution business. “I buy and distribute cereals to companies, NGOs and millers. I also import some cereals such as black beans from Tanzania and sell them to local markets.” Mwendwa has partnered with millers such as Unga

Hurdles This kind of business requires heavy investment for it to give ample returns. “We do the filling of water bottles manually which is expensive given the labour required.” To sort this out, Musembi requires a lot of money to purchase machines that facilitate lively filling.

Another challenge facing this business is the need for more trucks to distribute the products. “We are currently using one truck to distribute to all our customers.”

Future plans Having made the first steps in water bottling, Musembi now aspires to start processing honey and packaging it.

“Honey is in plenty but in most cases, it is not purely processed and so to fill this gap, our processing will be pure.” He also plans to run an awareness programme which will sensitize people to use honey in place of sugar for a healthy lifestyle.

“In addition, we are planning to start producing fresh juice without additives and sugar and we have already procured juice processing machines to that end,” he concludes.

Other apprentices Gibson the proprietor of Gibson’s Africa Ltd started by hawking chapati in Campus

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Esther Ndiga

SKILLS DEVELOPMENT

Huron Mobegi.

Limited and Capwell. Her advice to aspiring entrepreneurs is that they should pursue their passion and the returns will be rewarding.

Winnie Wanja’s business is purely handiwork. She specializes in jewellery.

“When I visited Uganda on a school trip, I saw these beads which my friends said are used to make beautiful necklaces,” she recalls. That simple discovery has turned out to be the best thing she learnt during the trip as from it grew an enterprise that earns her a living up to date. From GEA, Wanja has learnt a lot about marketing and

Gibson Mwangi.

Mount Kenya University has prepared you beyond academic fronts to be competitive graduates

Naomi Mwendwa.

hopes to expand her business even further.

Other benefits During the launch, Family Bank’s CEO David Thuku, promised the apprentices a one year membership of the bank’s business club which serves to help young entrepreneurial minds by critiquing their business ideas and helping them develop well thought enterprises. “Plans are underway to start an exchange programme of the business club members with a US based company starting next year,” he promised.

Jane Nyuttu, MKU co-founder cuts a cake during the graduation as other guests cheer on.

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HE COULD HAVE JUMPED THE HURDLE; BUT HE CHOSE TO GO ROUND IT Samuel Mbugua set out to do pig farming, but hurdles along the way turned him into a hydroponics specialist

By Caroline Mwendwa

W

hen challenges strike, they can either be pitfalls or turn around opportunities.

When Samuel Mbugua a biochemistry graduate quit employment from a packaging firm, he did not foresee the change of stance that would follow.

He teamed up with a group of friends and delved into pig farming eying the rising demand for pork. However, just as their business was gaining traction, the government imposed a value added tax on all animal feeds and this meant a sudden rise in the costs of their new found venture.

They had to find an alternative to expensive feeds.

Changing tide The ebb of the tide would come in as the commonly known hydroponics technology.

Well, there they were experimenting on this concept and trying to make it practical enough to solve the scarcity of animal feeds they were facing. “This idea has since morphed into a registered company

Samuel Mbugua showing a tray of hydroponic fodder.

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called Grandeur Africa which specialises in installation of hydroponic units.“We also help farmers understand this concept and how they can use it to solve the animal feed crisis especially in dry areas,” says Mbugua.

Using their website, social media pages as well as referrals, the firm has managed to reach most people in various counties in Kenya and beyond.

“We have a presence in Uganda, Nigeria and Tanzania. It is our core service now…

though we still rear pigs to pad our income, this has been our mainstay,” he points out.

Looking at the number of visitors who frequent their website every month, it is clear that the farming technology is gradually gaining popularity.

How hydroponics work Hydroponics is a subset of hydro culture.

This is where plants are grown in water without soil. Mineral nutrients solutions are used as a substitute for soil. Terrestrial plants are grown with the roots inside the mineral nutrient solution. They can also be grown in inert media such as perlite, gravel, wool with minerals, clay pebbles as well as coconut shells. It is a relatively new art of farming in Kenya.

It’s already being used to increase farming outputs and grow plants in habitats that wouldn’t normally sustain them. The thinking behind this is simple. Plant growth is often limited by environmental factors.

By applying a nutrient solution directly to

BL KILIMO destination and are placed in feeders on the ground for animals to eat.

Seeds from which fodder grows.

a plant’s roots in a controlled environment, a farmer can ensure that the plant always has an optimal supply of water and nutrients.

This nutritional efficiency makes the plant more productive.

In conventional agriculture, soil supports a plant’s roots – helping it to remain upright – and provides it with the nutrients it needs to grow. In hydroponics, plants are artificially supported, and a solution of ionic compounds provides nutrients instead.

To set up a hydroponic fodder unit, a farmer needs to construct a shelter as crops will not grow in the open.As Samuel explains, one needs a shade net and good quality seeds as well as aluminum trays.The hydroponic fodder takes up to seven days to mature.

“The maturity of the fodder required depends on the animal being fed. For example, cows require seven day old fodder, rabbits require four day old fodder,” says Mbugua. “It must be served while it is still fresh so that it doesn’t lose its protein content,” he adds.

Most parts of the country recently experienced drought. As a result, animal feed became scarce and expensive.

Indeed, hydroponics fodder plugged that gap, giving farmers a lifeline.

Although hydroponics relies essentially on water, the system is efficient in managing the re-source. Studies have indicated that hydroponics systems are at least ten times more efficient in water usage in comparison to field farming.

According to proponents of the

technology, hydroponics is the fastest growing sector of agriculture, and itcould well dominate food production in the future.

As population increases and arable land declines due to poor land management, people will turn to new technologies like hydroponics and vertical farming to create additional channels of crop production.

Advantages of hydroponic farming The advantages of this technology include elimination of soil pests and soilborne diseases. Crops grown this way are said to produce higher yields. For example, the yield of the tomato plants grown hydroponically tends to be 30 to 50 percent higher than the one of conventionally grown plants. Hydroponics also can be carried out by small-scale farmers due to low land use. In addition, this method minimizes human labour as it takes only one or two people to maintain a hydroponic shed.

In growing fodder, the process starts by rinsing the seeds and soaking the same in water for thirty minutes. The seeds are then transferred to germination trays and stacked into a module. A typical module has seven compartments, each for every day of the week.

The module produces 500 kilograms of fresh fodder per day in a seven day cycle.

In addition, it can feed 35 dairy cows or 125 sheep or 125 goats or 50 horses or 100 pigs daily. The stock feeding procedure involves the removal of fodder ‘bricks’ or ‘biscuits’ from the module. These are then transported to the desired feeding

Hurdles Access to finance is one of the main challenges facing young farmers in Kenya.

While starting the venture, Mbugua and his team struggled to raise funds.

“It was tough to get any form of financing.

We had to bank on friends and relatives,” he recalls.

Other than inadequate funds to grow the business, Mbugua says that his team has to follow up with the customers to see their progress, which is a costly affair.

“This concept is still not mainstream; we have to keep on educating farmers especially those in far flung counties.”

In recent days, debate has been raging about genetically modified foods (GMOs). Due to the low awareness of the hydroponics concept, some farmers confuse it with GMOs. “We have to keep on spreading the word about hydroponics and its advantages.

We meet people who claim that this is GMO because of the fast growth. It is not true,” asserts Mbugua. The fodder is produced without the use of any hormones, chemicals, fertilizers or synthetic growth stimulants. There are no fungicides or pesticides used that could contaminate the meat or milk. Other crops grown in hydroponic conditions include tomatoes, lettuce, strawberries, potatoes, melons, beans, snow peas, carrots, pumpkins, beets, sweet corn, mushrooms and artichokes.

Conclusion Most young graduates like Mbugua are leaving their white colour jobs to venture into agribusiness. This trend has seen technology being integrated to agribusiness because the youth are tech savvy.

According to Mbugua, farming pays off and to be successful, one needs to be diligent and patient. Mbugua, now an experienced farmer, advises the youth to master their field even as they venture into farming.

“When you know your trade, getting a market is easy,” he says. “One of the reasons why farmers do not turn a profit is that they have not been able to master the law of supply and demand – when the supply is low, prices go up and vice versa,” he observes.

Currently, Mbugua is setting up an agribusiness complex in Kajiado county where he will host demonstrations, a fish and livestock farm and fodder units.

“We have a calling of making agribusiness an awesome economic activity in the country, and to that end, we are looking forward to reaching as many farmers as we can in the next five years,” he ends.

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Biashara Picture

(L) Emma Nuthu and Angela Waeni marketing Biashara Leo Magazine during the International Conference on Peace, Security and Social Enterprise at the Safari Park Hotel.

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