JANUARY - MARCH 2016
ECONOMY CREATIVE READINESS OF THE KENYAN WORKFORCE FOR CORPORATE GROWTH
CYBER-THREATS UNDERSTANDING THE EFFECTS OF CYBER-THREATS
Sustainable Entrepreneurship Kenya..........Kshs370 Uganda..Ushs 13,800
Tanzania......Tshs 8,300 Rwanda......RWF 2,800
South Africa........R 40 Angola ...........OA 520
Algeria.........DA 395 Egypt...EPounds 32
Tunisia....Dinar 8.50 Ethiopia...........R 90
Gambia........Da 165 Ghana....GH114,000
JANUARY - MARCH 2016 I PRIVATE SECTOR I 1
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CONTENTS TRADE 13 I Business Incubation Centers 16 I Economy Workforce TECHNOLOGY 21 I Cyber - Threats TOURISM 40 I Reasons why you should visit Kenya MAJOR ENGAGEMENTS 54 I KEPSA hosts WTO reception dinner 55 I 5th Presidential Round Table 56 I Northern Corridor Integrated Project Dinner 57 I Launch of Mkenya Daima Phase Four
MAKINGS OF SUCCESS
Sustainable Entrepreneurship The world today is a complex blend of excitements and shifts. To survive, there is need for individuals and organisations to transform ideas into tangible solutions.
We get to explore the perspective on what drives
Tabitha Karanja and her vision for the future of Keroche Breweries
FOREWORD Ushering in 2016
s we usher in 2016, it is time to capitalize on the gains made last year through various forums. Kenya has played host to leaders and dignitaries from various countries bring to the fore the immense potential for growth and investment by both local and foreign investors. At the same time we played host to various international conferences and conventions including the Global Entrepreneurship Summit (GES) and the 10th World Trade Organization Ministerial Conference. Through this fora Kenya’s entrepreneurial spirit was awakened with various funds set up to help capitalize on the innovative spirit of our youthful workforce. Funds such as Enterprise Kenya which is a joint partnership between the private sector and government were set up to help would be entrepreneurs and existing SMEs scale up their operations by adopting business maturity models. It is time to form the final linkages between entrepreneurs and the vast opportunities that have remained largely unexploited while at the same time empowering SMEs to expand their operations and play a greater role in wealth creation. We need to inspire the next generation of entrepreneurs to take up the challenge of wealth creation and integrate technology into our day today transactions. As witnessed through the adoption of mobile money transfer which has now morphed into one of the world’s premier cashless services, technology holds the key to overcoming most of the challenges we face today. As 2016 kicks off we must all gear up to capitalize on the opportunities in various sectors of our economy ranging from the tourism sector which is set to rebound this year to agribusiness and agro-processing, energy, IT, infrastructure, mining and the emerging oil and gas sector. It is time to capitalize on the gains made in the development of Public Private Partnership and forge new ties with both local and international investors. We must take up our share of the mega projects that are ongoing across the region while at the same time paving the way for participation in the implementation of new projects set to be launched this year. It is time to harness our entrepreneurial spirit and take up our place as both local and foreign investors.
Carole Kariuki, HSC, MBS Chief Executive Officer KENYA PRIVATE SECTOR ALLIANCE
MANAGING DIRECTOR Preston Muhando SENIOR EDITOR George Sewe COMMERCIAL & RETAIL TEAM Mike K. Sabari, Linet Eregwa, Rachel Bitutu ADVERTISING MANAGER Fredrick Odenyo PRODUCTION MANAGER Preston Muhando HEAD OF DESIGN Eliud Maumo PHOTOGRAPHY Ochieng’ Maumo ONLINE MANAGER Fredrick Oluoch DISTRIBUTED BY Jetsam Distributors
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While the publisher have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
The Kenya Private Sector Alliance (KEPSA) is the voice of the private sector in Kenya and is the umbrella body for private sector associations and corporate bodies in all sectors of the economy including trade associations. KEPSA speaks for multinationals, SMES and startups organized under different sector boards and working groups reflective of the 16 sectors of the economy. KEPSA has over 100,000 members through business member organizations and companies. It provides a platform for the private sector to engage in Public Private Dialogue at Local, National and International level. It also offers information, advisory and networking opportunities for members and is a key partner to government and other stakeholders in the formulation and implementation of policies and strategies geared towards spurring economic growth, wealth creation and national development.
Amb. Dennis Awori Chairman, Kenya Private Sector Alliance
KEPSA BOARD OF DIRECTORS
Kenya Private Sector Alliance (KEPSA)
Amb. Dennis Awori
Laila Macharia (Vice Chair)
Judicial and professional matters
Vimal Shah (Ex-officio)
Trade and Investment
Vision 2030 and Entrepreneurship
Social sectors and Development
Finance and Macro-economic Environment
Climate Change and Energy
Science, Technology and Information
Productivity and Social Services
Security and Tourism
To find out more about how you can became a member of KEPSA, Contact us today: Kenya Private Sector Alliance I 5th Flr, Shelter Afrique Bldg, Mamlaka Rd. P.O. Bix 3556 - 00100 Nairobi, Kenya office: +254 20 2730371 / 2 / 2727936 Fax: +254 20 2730374 Cell: +254 720 340940 Email: email@example.com Website: www.kepsa.or.ke
2015 Round-Ups SPORTS CULTURE AND ARTS
Kalasha International Film and TV Festival and Market The Kenya Film Commission, in partnership with the French Embassy hosted the Kalasha International Film and TV Festival and Market from 26-30 October 2015. The event marked a departure from the Kalasha Awards as held over the last five years by expanding the scope and events around the festival.
EDUCATION : Digital Literacy Program (School Laptop Project) 1.2million Tablets / 23,000 Schools FIRST PHASE: 2016 • 600,000 Laptops • 11,000 Primary Schools
• 23,596 Tablets for teachers • 11,798 Projectors SECOND PHASE: 2017 • 401,737 Laptops • 12,000 Primary Schools
The Digital Literacy Program, popularly known as the school laptop project is expected to kick off in January 2016. A total of 150 schools have been selected for a pilot run of the digital literacy programme to benefit lower primary pupils. The pilot schools have been selected based on urban, peri-urban and rural categories. The Government plans to distribute 1.2 million tablets to 23,000 schools, in two phases. In the first phase in January 2016, 600,000 digital learning devises will be distributed and installed in 11,000 selected schools. 23,596 tablets for teachers and 11,798 projectors will also be distributed in this phase. In the second phase starting January 2017, 401,737 tablets will be delivered and installed in 12,000 primary schools. Three schools from each county have been selected for piloting under the proof of concept (POC), ahead of the roll out of the project in January.
Ministry of Interior – Reshuffle and Reorganisation Following the recent cabinet reshuffle, Engineer Karanja Kibicho has been appointed Principal Secretary for Ministry of Interior. The position had previously been occupied by Amb Dr. Monica Juma, who has since moved to the Ministry of Foreign affairs in similar capacity. Other principal secretaries in the ministry of interior are Micah Powon (Correctional Services -) and (Special Programmes) -Josephta Mukobe.
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The event focused on film, generation of local content and the promotion of Kenya as a filming destination. The awards brought together East African
Producers, broadcasters, distributors and government bodies in a bid to form new linkages with their counterparts from the rest of the world. According to the Kenya Film Commission the awards will go along way in fostering the country’s move to digital broadcasting enabling the development of local content to fit the new broadcast requirement of 40 to 60 per cent for broadcasters.
ENVIRONMENT, WATER & NATURAL RESOURCES
COP21 The twenty-first session of the Conference of the Parties (COP21) and the eleventh session of the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP) took place from November 30, 2015 to December 11, 2015. The climate talks come at a time when the planet experienced the highest temperatures recorded in history, with unpredictable weather patterns, blamed on global warming. The meeting’s main agenda was to deliver a clear pathway with short and long term milestones, and a system to help governments measure and increase progress over time until they reach the goal of reducing carbon emissions. Kenya’s intended nationally determined contribution (INDC) set out a goal to lower greenhouse gas emissions by 30 per cent by 2030 despite the fact that Kenya contributes a mere 0.1 per cent to the total global emissions.
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2015 Round-Ups DEVOLUTION & WOMEN EMPOWERMENT
COUNTY REGIONAL ECONOMIC BLOCS TO FACILITATE TRADE ACROSS COUNTIES, THE FOLLOWING ECONOMIC BLOCS WERE PUT IN PLACE The economic blocs are geared towards the ease of doing business across counties by coming up with relevant policies and regulations to facilitate inter-county trade. LAKE BASIN ECONOMIC BLOC
13 Counties POPULATION OF
COMPRISES OF : Bungoma County, Busia County, Homabay County, Kakamega County, Kisii County, Kisumu County, Migori County, Nyamira County, Siaya County, Vihiga County, Bomet County, Trans-nzoia County, and Kericho County
NORTH RIFT REGIONAL ECONOMIC BLOCK
8 Counties POPULATION OF
COMPRISES OF : Uasin Gishu County, Baringo County, Trans-nzoia County, Nandi County, West Pokot County, Turkana County, Samburu County and Elgeyo Marakwet County
JUMUIYA YA KAUNTI ZA PWANI BLOC
6 Counties POPULATION OF
COMPRISES OF : Mombasa County, Lamu County, Kwale County, Kilifi County, Tana River County, Taita Taveta County
INSPIRATIONAL WOMEN AWARDS (COUNTY EDITION) The 2nd Edition of the Inspirational Women of the Year Awards (County Edition) was held in November 2015. This is an initiative under the Directorate of Gender that annually recognises the work of grass-root women from each of the 47 counties (one from each county) that have made impressive contributions towards empowerment of women, girls, families and county at large. One inspirational woman from each county was identified through a vetting process that saw 47 women crowned as inspiration woman of the year.
KEPSA-PARASTATAL HEADS ENGAGEMENT ON PREFERENTIAL GOVERNMENT PROCURMENT QUOTA RESERVED FOR WOMEN In line with KEPSA’s commitment to the Global Call to Action to deliver one million businesses to the global market by the year 2020, KEPSA held an engagement with heads of key parastatals on the preferential government procurement quota reserved for women. It was resolved that private sector will work closely with government parastatals to implement the preferential public procurement policy; recognising it as a national initiative that feeds into a global initiative to bring more women into business.
COUNTY EXECUTIVE (CEC’S) FORUM The County Executive retreat was held in November 2015 bringing together county executives from all the counties and across all the sectors. This was the inaugural meeting with the counties and an engagement mechanism was agreed to hold a similar retreat annually and have regular engagement at the sectoral level. The retreat also served as a preparatory meeting ahead of the next Annual Council of Governors Devolution Conference scheduled to take place in April 2016.
COUNTY SPATIAL PLANNING FRAMEWORK MT. KENYA, TRADE BLOC COMPRISES OF 9 COUNTIES: Nyeri County, Muranga County, Kiambu County, Nyandarua County, Kirinyaga County, Embu County, Meru County, Tharaka Nithi County and Laikipia County
County spatial planning framework programme was officially launched and will be implemented by the counties with the support of UNDP and development partners. County Spatial plans a requirement by the County Government Act 2012, provides a framework to guide socio economic development especially urban growth and development.
2015 Round-Ups LANDS, HOUSING AND URBAN DEVELOPMENT
“Project Mwangaza” In November 2015, the Ministry of Lands launched an automation process in the Lands ministry dubbed “Project Mwangaza”. This is a project that will see land records and processes being digitised. This project emphasizes a multi-agency cooperation bringing together the following institutions, The Lands Ministry, ICT authority, National Land Commission, KRA, The Attorney General’s Office, County Governments and the private sector. The project has a lifespan of 10 months with expected completion
date of August 2016. Once completed, it is expected to be one of the four master data sets that comprise the government’s comprehensive information system (the others being People, Establishment and Assets).
Project Mwangaza has five outlined work streams: 1. Land 2. Tax/revenue collection 3. Information Communication and Technology 4. Process review and re-engineering 5. Legal and regulatory framework
FOREIGN AFFAIRS AND INTERNATIONAL TRADE
EAST AFRICAN AFFAIRS There is a continuous bilateral engagement between Kenya and the East African Community Partner States in order to resolve some of the longstanding non-tariff barriers (NTBs) such as the ban on Kenyan beef to Uganda. KEPSA welcomes the continued engagement of the Private Sector in the Northern Corridor Integration Projects.
The Kenya-South Africa double taxation agreement will come into force from January 1, 2016 and this will help ease the tax burden on investments both in Kenya and South Africa. The Global Entrepreneurship Summit and the World Trade Organization 10th Ministerial Conference and other international Conferences continue to open up opportunities for Kenya as a tourism, trade and investment destination.
JANUARY - MARCH 2016 I PRIVATE SECTOR I 11
2015 Round-Ups ENERGY Kenya Power has signed 11 agreements in December 2015 with contractors to pave way for full implementation of the Last Mile Connectivity Project which is set to commence in January 2016. The project, whose implementation was supposed to begin in September 2015 but delayed due to operational challenges, will see 1.5 million Kenyans connected to electricity at a subsidized cost of Ksh 15,000. This project is in line with KEPSAâ€™s goal of achieving economic prosperity for all Kenyans as electricity will open up the connected households to better economic opportunities. This will also contribute to the global climate change mitigation goals as the households reduce their use of wood fuel which has in the past contributed to deforestation.
ICT The Northern Corridor Integration Projects (NCIP) presents a huge opportunity for local Private Sector players in the region. Following the 10th Summitâ€™s agreement to have the Private Sector participate in the NCIP, a Northern Corridor Technology Alliance was formed and later formalized during the 12th Summit.
The Alliance coordinates ICT Private Sector players in the region towards ensuring their participation and investment in the projects. Communication Authority of Kenya has developed draft regulations to The Kenya Information and Communications Act, which KEPSA shall be following keenly to ensure the business friendliness of the final regulations.
INDUSTRIALIZATION AND ENTERPRISE DEVELOPMENT Implementation of the Special Economic Zones Act commenced in December 2015 paving way for Private Sector investment in the SEZs. Some of the incentives that investors will gain from the SEZs include; lower corporate tax rate which shall be 10% for the first ten years and 15% for the next ten years, Value Added Tax (VAT) exemption for all the SEZ transactions, and withholding tax exemption for the distribution of dividends for SEZ developers and enterprises to the foreign shareholders. These incentives have already been included in the Finance Act Amendments 2015
12 I PRIVATE SECTOR I JANUARY - MARCH 2016
AGRICULTURE Kenya has been granted another one-year extension of sugar import limits from the Common Market for Eastern and Southern Africa (COMESA), safeguarding local millers from intense competition from cheaper products. The current sugar safeguard period was to expire in February 2016. At the same time, the government has invited bids from the private investors interested in acquiring a stake in the five sugar companies earmarked for privatisation including Nzoia, Chemelil, Muhoroni, Sony and Miwani. The privatization is expected to reform the five industries and turning around the fortunes of the ailing sector.
BUSINESS INCUBATION CENTER
CROSS-DISCIPLINARY Shared Interests
INNOVATIVE Entrepreneural Skills
Business Incubation Center By NAILAB
BUSINESS INCUBATION CENTER
The latent potential In Accelerators and Incubators Business incubation centers and accelerators play an integral role in bridging the gap between theory and practice of entrepreneurship and provide soft landing for would be entrepreneurs.
he concept is still quite alien to many Kenyans who try to understand, define and rationalize the existence of incubators and accelerators and in the process their role and purpose has been misunderstood. It is sometimes easier to grasp the differences between two adjacent paradigms by understanding the elements that they share. For example, both incubators and accelerators prepare companies for growth by providing guidance and mentorship, but in slightly different ways, and more importantly, at different stages in the business life cycle. Much as some of the roles cross bleed into each other, its prudent to note that a lot goes into the development of a startup to ensure its growth and sustainability. This has seen the two business support entities in the Kenyan context tweak the support elements offered through their programs to offer maximum support to startups, and according to recent findings published in the Huffington post, 92%
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of startups backed by an accelerator or incubator survive as compared to the survival rate of about 60% of startups that establish independently. SOCIO-ECONOMIC SHIFT Accelerators and incubators form the biggest pipeline of commercial solutions in different sectors in the larger socioeconomic shift of a country. This can clearly be seen though the growth of technology consumption; where mobile and internet penetration, key channels used by startups to disburse their solutions, rose from 57.1% of the population in 2010 to 80.5% by end of 2014, according to the State of the media in Kenya 2014 report. This is a potential yet to be extensively mined with additional possibilities pegged on the inclusion of the larger private sector enterprises who can collaborate and co-innovate with the startup entities to provide value add products and services to their customers.
BUSINESS INCUBATION CENTER
BUSINESS LIFE CYCLE: KENYAN LANDSCAPE ACCELERATOR
Prepares startups for expansion and growth
Help establish and build startups through an intense program
Growth and expansion
Idea/ Early stage
Specified need based sessions
Detailed all encompassing business training
6 months to 1 year
Guided by admission frequency and competitive
Guided by admission frequency and competitive
Admits in cohorts
Rent/ Investment/ Non Profit
Investment/ Non profit/ Equity
Tactical and intense
Expansion/ venture funding awarded on case basis
All startups receive seed funding SOURCE: NAILAB
GROWTH RATE Drawing from lessons learnt through the Nailab incubation program which has since its inception seen 2 startups acquired and 4 other startups cater to about 10% of the low end of the pyramid through education, housing, sanitation and development aid solutions, it is clear that there is a need for the private sector to support and work with incubators and accelerators to achieve a higher growth rate for startup companies. By so doing we can economically impact on the development of our country while at the same time offering complementary services to consumers.
JANUARY - MARCH 2016 I PRIVATE SECTOR I 15
Creative readiness of Kenyan workforce for corporate growth The industrial economy of the 20th century gives way to innovation economy of the 21st century, the economy that is focused on highly customised products and services. With the rise of consumer power, globalisation, and emphasis on sustainability and environment, innovation is key to economic growth . As Barack Obama said, ‘innovation is the currency of the 21st century’.
By Alla Tkachuk firstname.lastname@example.org
INNOVATION CULTURE he industrial economy of the 20th century gives way to innovation economy of the 21st century, the economy that is focused on highly customised products and services. With the rise of consumer power, globalisation, and emphasis on sustainability and environment, innovation is key to economic growth. As Barack Obama said, ‘innovation is the currency of the 21st century’.
To make innovation a success, companies require a creative workforce. Around 70% of US employers put creativity and innovation among the top five skills companies need, and name recruiting ‘creative thinkers’ over ‘technically skilled’ employees a primary concern. ‘We need people who think creatively, who know how to kick-start a new idea, and how to get a job done better.’ Annette Byrd, Manager, GlaxoSmithKline. However, organisations have great difficulties in recruiting creative employees. Surveying 155 US business executives, the ‘Ready to Innovate’ report says that almost 80% of the US employers have difficulty finding creative applicants: only 24% of US new workforce entrants with college degrees were ‘creative thinkers’. In Africa, according to Ernst & Young and PwC, 75% of CEOs say that the difficulty in finding ‘talent’ to fill jobs threatens their companies’ growth. This is while millions of young Africans aged 18-25 are unemployed, six million in Kenya alone. The question is: how to increase creative readiness of the workforce. Educators believe that creativity should be developed in schools. However,
‘We need people who think creatively, who know how to kick-start a new idea, and how to get a job done better.’ Annette Byrd, Manager, GlaxoSmithKline. 16 I PRIVATE SECTOR I JANUARY - MARCH 2016
businesses must share this responsibility. SCHOOL COURSE THAT DEVELOP CREATIVE SKILLS ‘Ready to Innovate’ reports that educators view arts (creative writing, music and visual arts) as the main courses that develop the creative skills. These findings are supported by a survey conducted by the Scottish Executive Tourism, Culture and Sports, Information and Analytical Services that found that young people who had studied music or graphic design are among the most employable. This is collaborated by a landmark report of the US President’s Committee on the Arts and the Humanities that shows that students who were educated in schools with meaningful art training became much more successful in adult lives than students who went to schools with no arts. HOW DO ART COURSES DEVELOP CREATIVE INTELLIGENCE? Our visual processing is key to our creativity. 85% of our thinking is mediated through vision in children. Most discoveries made by Nobel Prize scientists began as images. Albert Einstein wrote that images, not numbers and words, played a major part in his thinking. He called creativity a ‘true measure of intelligence’. According to the Centre for Mind and Brain, changes in visual processing significantly affects how effectively our brain works. Nobel Prize scientists, for example, are 25 times more likely than ‘average’ scientists to be actively involved in the arts as adults, and connect their scientific success to their art practices. Most successful innovators are artistically trained too, and believe that art must be part of education. YOUNG PEOPLE ARE NOT ADEQUATELY PREPARED FOR EMPLOYMENT Despite this evidence, schools offer art classes on an elective basis only. In the US, art was offered in only 10-17% of secondary schools, according to the ‘Ready to Innovate’ report. In Kenya, art
CREATIVE SKILLS WHAT DO WE MEAN WHEN WE SAY ‘CREATIVE SKILLS’? The ‘Ready to Innovate’ report shows that three of the most highly ranked creativity indicators by employers are: : • The ability to identify problems and generate new original solutions, • The ability to identify new patterns and combinations that no one else sees, • The ability to integrate knowledge across different disciplines. Other attributes include curiosity, divergent thinking, risk-taking, and the ability to communicate new ideas. To cultivate creativity, the US employers use such strategies as working across departments (86%), mentoring (78%), working with outside innovation/ creativity consultants (74%), and artists (57%).
education in schools is severely limited. Although ‘creative art’ subject is part of the Kenyan primary school curriculum, schools do not teach it because the subject is ‘non-examinable’. There is the lack of understanding on the part of policy-makers as to what creativity is, and that the risk of not fostering creative intelligence in young people is detrimental to their success and to the success of the economy as a whole. If creativity is not fostered, it declines. Researchers B. Jarman and G. Land tested a large group of 5 year-old children, and found that 98% of them displayed strong creativity, but by the age of 15 only 10% of the same group, and only 2% of adults aged 25 years and over, displayed the same degree of creativity. Uncreative people generate the same old ideas, stagnate and lose advantages. However, when fostered, creativity strengthens. For example, ‘only five
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hours of creativity workshops given to unemployed youth increases their employment rate five times’ says the leading authority on creativity, Edward De Bono. BUSINESS-SCHOOL PARTNERSHIPS The ‘Ready to Innovate’ report gives an example of how forward-thinking businesses encourage creativity of new workforce entrants. Ford Motor Company partnered with a school in New York, and sponsored a competition to design an environmentally friendly car. The Ford engineers were very impressed by the imagination and design skills of the students’ ideas. In Kenya, MASK School for Creativity and Innovation is a good example. Hundreds of young people in more than 20 school had been trained in creativity. ‘MASK developed my habit for innovating’ says one of the students, Hellen, 22. After being on MASK programme for four years, she was able to design a new drug that the college intends to patent. She is now successfully employed and in charge of all-male team that has been at a company for years. ‘MASK made me an entrepreneur’ said another MASK’s student, Joel, 21, who started several small businesses after he left schooling. Seeing his innovative ability, the village elders asked him, to join their meeting and ‘give them good ideas that can improve the community’. ‘Before MASK came I did not know I was creative’, says Joel. In fact, very few students aged 14-19 years know what innovation/creativity is, or even heard of it, when MASK begins working with them. To promote innovation on a national scale, MASK set up a creativity competition with prizes themed ‘Young People - the Creative Nation’. Promoted by its media partner, the Kenyan national newspaper, The Star, the contest has attracted thousands of participants. MASK is currently looking for Kenya-based corporate partners. As Kenyan businesses move into the 21st century, they face increased global competition. If they innovate successfully they will thrive. This strongly depends
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on creative and innovative ability of the Kenyan new workforce entrants. Schools must cultivate creativity in the young. Businesses must share this responsibility and support creativity training at school and university levels.
‘only five hours of creativity workshops given to unemployed youth increases their employment rate five times’ Edward De Bono.
Alla Tkachuk MSc FRSA is a creativity training consultant and advocate. She founded Creativity-Gym (UK) and MASK School for Innovation and Creativity (Kenya), email@example.com
National Bank Managing Director Munir Sheikh Ahmed, shows the First Lady Margaret Kenyatta around the Mandera Branch. With them is NBK Chairman Abdirahman Hassan Mohammed and Director Linnet Mirehane. PHOTO I COURTESY
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Cyber Threats By Silvanus Sewe The KEPSA Security Sector Board Chair
CYBER - THREATS
UNDERSTANDING CYBER THREATS Cyber-attacks in the recent years have continuously increased, despite a campaign that has been fuelled by different groups to end the emerging economic crime
ost corporate and investment schemes have come up with draft policies and procedures for prevention ,and in some cases recovery from a data compromise, but a vast majority have failed to consider a fundamental aspect to the cyber attacks post mortem; figuring out who is going to pay. The field of cyber normally will entail both cyber security which involves preventing the attacks and then cyber forensics which provides the in-depth analysis on the attack and propose changes which will deter future threats. In terms of policies some companies tend to have cyber insurance which is just but the beginning when it comes to good cyber liability planning. Most firms do periodic own auditing in terms of cyber risk, either from wide inventorying, cataloguing or mapping of their technology resources. This includes hardware, software, network resources and connections, logging capabilities and practices among other resources. This forms an important security step for cyber-attack preparedness and disaster recovery which enables firms to know what specifically was compromised in the breach or attack. Such information informs the organisations how to best proceed as well as what their legal duties
are, while potentially serving to mitigate liability. CYBER FRAUD In 2013 for example, a cyber attack that was described by KrebsOnSecurity Company (by then the biggest cyber attack), ,reported that breaches in customer data came about because hackers stole credentials from the target HVAC Company in USA (a refrigeration, heating and air conditioning subcontractor). This details show how severe the attacks tend to be. Several firms have been victimised by cyber attacks. Some experience these attacks directly and others through one or more of their vendors. Most of these attacks come in the form of malware and fraudulent emails. KrebsOnSecurity further says that, Fraudulent emails in particular costs thousands of dollars for many companies, with some even loosing more than USD 75,000. Considering the report released by Kaspersky sometimes this year, one of the biggest vendors in ant-virus software, revealed that more than100 banks and financial institutions all over the world with Europe, America, Asia and Australia being the highest hit by cyber attacks. Even though the report never mentioned to extend of the attacks in Africa countries it does not mean that we can ignore cyber
The field of cyber normally will entail both cyber security which involves preventing the attacks and then cyber forensics which provides the in-depth analysis of the attack and propose changes which will deter future threats.
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CYBER - THREATS
Organisations have to constantly look at risk and constantly accept residual risk. They need to understand what happens if that residual risk comes to fruition. threats. Since July 2013 the banks have jointly lost a combined loss of USD 1 BILLION. In Kenya for example, the Chinese group who were nabbed at rented private home in Runda last year (2014) running a syndicate of cyber crime activities is a good of the threat facing Kenya and Africa as a whole.. This was mainly through malware attacks and video surveillance which enabled hackers programs to run backdoor without being noticed and also recording everything that happened on staff’s screens. Through this technique the ‘carbanak group’ was able to acquire passwords of bank staff and transferred large amounts of cash into several accounts from which they can withdraw the cash including also instructing the machines to dispense cash at a predetermined time of the day. WHAT DOES THE BACK DOOR PROGRAM MEAN? Basically hackers will design their malicious program and conceal it in such manner that it is not easily detected upon running an intrusion detection scan, such as, firewalls which many companies rely upon for efficient protection will only scan the first packet of data when on transit/ transmission. (When data is transferred via internet it is basically divided into several packets for easier transmission). Firewall scans the first packet because it consist of the file extension of any given file (data) being transferred. Hackers will conceal the file extension in the other packets therefore by passing the detection part. This program will therefore either run as backdoor which is very difficult to be noticed without proper system auditing mechanisms or it may compromise the system such that, they appear to have jammed or work abnormally, with the hackers
taking advantage of time to do whatever damage they indented to. The backdoor programs causes a lot of destruction, as it may run for long hours without being detected, as was the case in Kaspersky’s report. FOCUS ON INCIDENT RESPONSE Organisation security strategies need to plan for the inevitable breach. A successful network attack is not a matter of how; it is a matter of when. This is the approach every company or organisation should take in their information security planning. The more the organisations are going online/mobile banking, the more risk they are being exposed to, but it is a matter of business and bringing competitive edge in the field of operation, more so in the banking industry, payment systems and insurance institutions which all involve taking of risks. Organisations have to constantly look at risk and constantly accept residual risk. They need to understand what happens if that residual risk comes to fruition. This idea of risk acceptance and risk management is important because of the sheer number of attacks firms/ organisations face, and the devastating consequences of successful attacks. According to 2014 penomon institution study on the cost of data breaches, an organisation has a 22% chance of experiencing a data breach impacting at least 10,000 customer records in the next two years. The chance of experiencing a breach impacting at least twice that many records in the next two years, nearly 17% is greater than the chance of rolling a given number on a six sided die. CYBER-ATTACK PREPAREDNESS Therefore companies need to be prepared when their number comes up, for these breaches are not limited to the lazy and the negligent. The big
JANUARY - MARCH 2016 I PRIVATE SECTOR I 23
CYBER - THREATS
question however will be, how do you deal with the fact that you are going to be breached? Even those companies with a comprehensive security information management system are at constant threat of being breached or attacked.
Data back ups and machine imaging as well as back-up power generators and redundant IT infrastructure is central to a good incident response plan.
Incident response plan recognises that â€˜even if you do everything right, there is still a pretty good chance that you will get hit. In simple terms, it means that whatever you drill for will not happen, but you will learn a whole lot in the process, how people work together, how different people interact and that can be useful in itself i.e. new loopholes will always arise with every advent of new technology, the basic requirement here will be in case of attack how are you prepared to handle it? , Does the company have the capacity and willing to invest in the Forensic aspect of cyber crime? Data back ups and machine imaging as well as back-up power generators and redundant IT infrastructure is central to a good incident response plan. These redundancies and back-ups are important not only in terms of disaster recovery, but also in terms of compliance and public relations. If a device goes missing or a data breach occurs and it is not clear what specific data was compromised, it is basically simple to disclose such breach because you cannot solve anything unless you know what data has been affected. CYBER THREATS MANAGEMENT, HOW TO CURB THREATS A lot of emphasizes have been placed on both technology professionals and attorneys charged with balancing the expectations of their clients and business units, with the hard reality of the current financial and regulatory climate. Sometimes organisations assume high levels of risk as a result of their inability to meet the costs involved in data protection. In some instances, time is of the essence as with a data breach. Through proper management of Emails and passwords in any organisation, plus use of encryption and combination of information/.data security techniques such as biometrics, fingerprints,
GLOBAL FORENSIC SERVICES LIMITED P.O BOX 34758-00100, NAIROBI Tel: Cell phone0722 361413/ 0722496441 Email: firstname.lastname@example.org and email@example.com www.globalforensics.co.ke; E-mail: firstname.lastname@example.org NACICO Plaza Next to Machakos Country Bus 5th Floor Room 508 A
Why Choose Global Forensic Services? OUR EXPERIENCE & REPUTATION
ALL OUR COURSES ARE NITA APPROVED
We are the regional leader in Forensic and Security Risk management, Cyber security, Information Security, Governance and Forensic fraud Investigation training, with over 5 years experience.
• Plan for training workshops of 2016 as early as possible. • All courses are available at the GFS website and you can also apply from the office or via an online mode of application whereby early applicant’s gets discounts and late applicants pay full amount of the workshop. • All courses will be shorthand, 3 days only to accommodate busy clients. • First workshop is set for January with the last one early December. • We also have full course trainings which run for a month at our offices
We have trained several Institutions and over 2,000 professionals including some of the most prestigious companies and institution in the country and Africa region. We continue to be the choice for companies and professionals who want to ensure their employees gain the skills to make real improvements to their organization. OUR COURSES We have over 12 training courses to choose from the most comprehension portfolio of events of any training provider. This means that whatever level you are at in your career you will be able to find a course that suits your needs and interests. All our courses have a practical focus. They contain real life Hands on Use various of Forensic Tools, case studies, exercises and knowledge based learning that has an emphasis on real life situations. All courses are updated regularly to meet the latest legislative and market challenges. You will leave a training course with both current and emerging best practice. Upon completion of your training course you will be awarded with a certificate which will contain details of the course you have attended.
BENEFITS OF INVESTING ON CYBER SECURITY AND FORENSICS • To minimize corporate loss through information security and specialist resources in examining different IT systems. • Services supplied by cyber Security and forensics do have significant return on investment on cyber crime investigations. • Rapid completion of investigations which reduces overall costs. • Detailed independent and confidential report of findings on computer and cyber forensics investigations. • Immediate response service improving the likelihood of finding evidence.
OUR SERVICES • Forensic investigation Services • Computer Forensic Examination • Phone, Ipad and Iphone Forensic Examination • Email Investigation Services • Fraud Investigation Services • Cyber Security Services • Data Recovery services • Consultancy services • ISO Auditing & Risk Assessment • Designing Security policies • Training Services
Developing and Implementing Effective Ethics
Conducting Fraud Risk Assessment
Security Risk Management in 21st Century
Fraud and Forensic Auditing training
Corporate Governance and Risk management
Audit and Security of Networks, OS and Databases
Electronic evidence Management
Network and Information Forensics
Managing strategic and Reputational Risk
Mobile Phones Forensics’
Digital and Cyber Forensic training
Information Security Management system ( ISO)
Information and Cyber Security Conference
Our belief is to link our lab of problem solving to the floor of your company We provide tailor made training programmes
CYBER - THREATS
passwords will be a major boost in winning the war against cyber attacks. There should a well outlined mechanism on how to dispose passwords. Mechanisms to be followed is of great importance that data back up plans should be a key priority. All logs also should be backed up for specified period of time and periodically analysed to establish the cyber threats being experienced by the particular organisation. Another important aspect that most of the organisations have never realised is the importance of computer and cyber forensic experts on their ranks and the role they play. Although they are hardly considered, Forensics experts in this field will play a major role in analysing all possible threats and provide the solutions on how to curb future similar or related attacks apart from drafting an expert report for court cases if need be. INFORMATION GOVERNANCE However, we must do better at information governance, the fact is hard drives fail all the time and modern technologies provide opportunities to balance the cost-time-risk equation.
26 I PRIVATE SECTOR I JANUARY - MARCH 2016
Draft prevention cybercrime bill by the Kenya Private Sector Alliance Security Sector Board, cybercrime and computer crime related offences are among the draft bill which have been lately drafted to fight the last cybercrimes in Kenya. Finally, efficiently meeting E-discovery and freedom of information act challenges takes more than dependable storage, you need governance. Itâ€™s highly regrettable that most of the institutions especially banks have got no security and investigations department with several have under supported such department with no capacity to tackle such cases. They therefore rely on reporting such cases to the Police who in most cases will not have the capacity to investigate the matter fully. Basically, a murder case and cyber case will be dealt differently as the latter carries more weight hence whenever such cases are reported they will take several years to be resolved in courts. Organizations must conduct training and awareness on information security training and carry out information risk audits, then
design and implement information security policy to protect valuable asset which in information age, is of course information. All automated system should adhere to this advice to have proactive systems to protect its asset. Information Security is one the element of National security, which must be managed to keep a Nation safe and secure. Because of the threats faced in this area; the constitution, several legislations and bills have been developed to create management structures in order to protect and control use of information. Draft prevention cybercrime bill by the Kenya Private Sector Alliance Security Sector Board, cybercrime and computer crime related offences are among the draft bill which have been lately drafted to fight the last cybercrimes in Kenya.
Dr. John Akoten PhD Acting Executive Director ANTI-COUNTERFEIT AGENCY
educate, enforce, eliminate
Anti- Counterfeit Act 2008 Effective enforcement mechanism against COUNTERFEITERS. THE ANTICOUNTERFEIT AGENCY The Agency started its work in year 2010, it had taken some time for the law enforcement community that were tackling intellectual property crime to give IP crime the attention it required. But with clear government backing and full operational engagement, the Agency is now fully operational. The criminal networks behind IP and counterfeiting are now firmly in our sights. We have now strengthened our engagement with other government Agencies both within our borders as well as at the crossborder level. We have as well initiated a publicprivate sector collaboration that has added impetus to our law enforcement efforts, with the Agency acting as the platform for the overall coordination of the fight against counterfeits. The cooperation drives our engagement with regulatory bodies, private sector and policymakers in law enforcement operations, capacity building, training, legal assistance, and raising awareness. One of our main operational strengths is the wide range of stakeholders, from the private and public sectors and as well as the diplomatic community. With as many relevant stakeholders as these, the potential of leveraging on such a network to enhance the Agencyâ€™s effectiveness makes the war against counterfeits very effective. We particularly appreciate the participation of the Kenya Private Sector Association (KEPSA) members and Kenya Association of Manufacturers (KAM) in this engagement. The participation of KEPSA definitely increases our outreach into policymaking processes affecting the private sector.
Effects of Counterfeits 1
Risking your HEALTH AND SAFETY
Causing LOSS OF JOBS
Denting KENYAN ECONOMY
Promoting CRIMINAL ACTIVITIES
Contact us: Executive Director, Anti-Counterfeit Agency, Kenyatta Avenue, Telposta Towers, 4th Floor, P.O. Box, 47771-00100, Nairobi, Kenya. Hotline: +254 020 228 0000 Cell: 0733 951375, 0717 430640, SMS: 21210 Website: www.aca.go.ke; Email: email@example.com
WHAT ARE THE OFFENCES UNDER THE ANTI-COUNTERFEIT ACT 2008? It is important for intellectual property owners to be aware of the offences created by this Act, which offences are as follows: 1. The possession of infringing goods in the course of trade; 2. The manufacture, making or production of infringing goods for use which is not of a private or domestic nature; 3. The selling, hiring or exchanging of infringing goods; 4. The exhibition of infringing goods for the purposes of trade. 5. The distribution of infringing goods for the purposes of trade, or any other activity or action which could cause prejudice to the rights of an intellectual property owner; 6. The importation of infringing goods into or through the Kenya. WHAT ARE THE ENFORCEMENT REMEDIES AVAILABLE? The Act has various far reaching remedies. The Act provides for two courses of action in this regard: A) ACTION TAKEN BY THE ANTI-COUNTERFEIT INSPECTORS APPOINTED UNDER THE ACT. The intellectual property owner, his licensee, exporter or distributor of the goods, including the intellectual property owner's attorneys, may lay a complaint to the effect that an offence of dealing in counterfeit goods has been committed. The complaint is lodged with the Anti-Counterfeit Agency or with an Inspector who has been appointed as such in terms of the Act. If satisfied that such an offence has indeed been committed, the ACA Inspectors or the designated inspector can search and seize any goods, as well as the taking of all steps that are reasonably necessary to terminate the act of dealing with or in counterfeit goods. The subject goods are then removed from the premises to a designated "counterfeit goods depot" thereafter criminal and / or civil prosecution may commence. B) ACTION TAKEN BY CUSTOMS Customs officials are recognized designated Inspectors under this Act. In fulfilling their duties to secure our borders, they have a mandate under this Act to prevent the importation of counterfeit goods into the country. In terms of the Act, an intellectual property owner may make application to the Commissioner of Customs and Excise for the seizure and detention of certain counterfeit goods that are being imported into the country. Once again following the completion of the seizure criminal and / or civil prosecution may commence. WHAT ARE THE PENALTIES? The Act also introduces strict penalties which may be imposed upon counterfeiters in the event of their conviction. Any person convicted of an offence in terms of the Act will, A). FIRST OFFENDERS: in the case of a first conviction, punishment by a fine in respect of each article or item, a minimum of three times the value of goods seized, or imprisonment for a period not exceeding five (5) years, or both. B). SECOND/ SUBSEQUENT OFFENDERS: In the case of a second or subsequent conviction, the fine in respect of each article or item have a minimum of five times the value, while the imprisonment term not exceeding fifteen (15) years, or both. It is important to note that that: Court rulings declaring goods in question to be counterfeit makes the said goods to be forfeited to the Agency for destruction. The same applies to the goods, packaging and tools used in the manufacture of counterfeits.
BEWARE OF COUNTERFEITS ! BUY GENUINE GOODS
Re-Launch The Voice of Information Technology influencing policy, Direction and Development in the Industry
of this exchange point was applauded worldwide as it was the first exchange to be established in Africa outside of South Africa and since 2007 has been recognized as one of the fastest growing IXPs on the continent.
TESPOK CEO Fiona Asonga with KENIC CEO Abdalla Omari during TESPOK re-launch. PHOTO: TESPOK
echnology Service Providers of Kenya (TESPOK) rebranded in the last quarter of 2015 from Telecommunications Service Providers of Kenya. The decision to drop the Telecommunications and take up Technology is driven by the vision of widening its scope so as to advocate for businesses in the entire ICT industry.
ACHIEVEMENTS . Since inception in 1999, TESPOK has been involved in a number of initiatives in its efforts to influence government policy formulation and implementation, and in its position to provide industry guidance and reference in technology matters. Today, TESPOK has actively participated in initiatives both at the local, regional and international levels.
In its new role as Technology Service Providers of Kenya, TESPOK is keen on addressing the interests of software, hardware and content developers, network integrators, contractors ICT sub sectors in addition to its traditional membership. The change now puts the lobby group at par with the government that not so long ago consolidated its ICT implementation functions under ICTA. In a fast changing industry such as ICT the ability to focus on all issues that ensure business continuity in a conducive environment is important.
At the National level, TESPOK has taken a leading role in spearheading the development of Information and Communications Technologies in the country, and also making access to quality and affordable communications services available to all Kenyans, through;
VISION : “To be the driver of ICT growth and excellence in African” MISSION: “To be the voice of technology influencing policy, direction and development in the industry”
1. Formation of the Kenya Internet Exchange Point where currently 29 network operators are peering their local traffic thus improving their interconnect speeds and reducing bandwidth costs. Through the KIXP, Kenyans now enjoy faster transmission of electronic mail within the country, and speedy browsing of websites hosted by connected local Internet Service Providers (ISPs). Routing of local traffic within Kenya has ultimately resulted in cheaper faster Internet access as more service providers get connected to the Exchange. The establishment
2. The successful and groundbreaking initiative to bring the registration of Kenyan Internet Domain name under the auspices of KENIC, the national registry for .ke cCTLD ( Country Code Top Level domain). The development, transformation and support of KENIC the national cCTLD has been of interest to TESPOK from the onset with the stability of KENIC being a key aspect of internet penetration and access within the country as more Kenyans identify themselves with the .ke domain. The multistakeholder approach adopted has seen other countries encouraged to adopt the Kenya’s model. KENIC makes it easier to maintain existing and obtain new Kenyan Domains. 3. Market Liberalization Efforts have seen TESPOK lobby to ensure : i. Deregulation of VSAT Services as well as VOIP Consultations. ii. Fair competition amongst Data Operators iii. Opening up of the International Data Gateway market. 4. An appropriate policy and regulatory business environment for TESPOK Members and the industry as a whole has been involved in the National ICT Policy draft review and has contributed recommendations and comments for adoption in the ICT Draft Policy. It has participated in policy discussions and made various presentations to policy makers in a number of important legislative processes and forums. Most recently TESPOK was at the fore front of negotiations with Policy makers to make the necessary amendments to the Kenya Communications Act 2009. TESPOK has further interacted with other key stakeholders e.g. Communications Authority , Ministry of Information Communications and Technology, The Law Society of Kenya, the Constitutional Review Commission and various Civil Society groups such as Article 19, and
Technology Service Providers of Kenya
Tespok Brand Relaunch 1st Oct 2015 Sarova Panafric. PHOTO: COURTESY
further facilitated networking through luncheons, workshops and conferences. 5. In 2011, TESPOK was recognized as having the first active Computer Security Incident Response Team (CSIRT) in the country. This has contributed towards facilitating online security for end users. The process was automated in 2012 and the industry body is able to provide both proactive and reactive support to members. MEMBERSHIP AND BENEFITS: TESPOK has gained recognition locally in the Kenyan business community and globally as an active technology industry body, playing an important role in the development of Kenya’s technology and Internet policy. Membership is open to all Technology Service Providers and we encourage them all to join TESPOK so as to get their voices heard by key decisions makers in the sector. On the way forward, all these players are brought together to address key cross cutting issues that TESPOK keenly follows up on; IP Address Management, Domain Name Management, Cyber Security and Capacity Building. In its new strategy TESPOK has emphasized its focus in facilitating a suitable ICT business environment through: i. Participation in IP Address Policy and it’s management through active participation in AFRINIC the regional organization responsible for IP Addresses
TODAY TESPOK REPRESENTS THE FOLLOWING CATEGORIES OF ICT FIRMS: • TELECOMMUNICATIONS OPERATORS Mobile, Infrastructure and Internet Service Operators • CONTENT OPERATORS Data centers, Web and application developers, content development networks, digital media operators and domain registrars. • NETWORK CONTRACTORS system integrators, hardware vendors, software vendors and ICT consultants. • BUSINESS PROCESS OUTSOURCING Back office support service Providers and call center operators
on the continent, encouraging local participation at the meeting and supporting IP Address management standards. ii. Domain Name Management through involvement in the issues affecting the local CcTLD and working with other Top Level Domain Managers to ensure ease of TLD resolution for customers through the
KIXP. iii. Cyber Security is placing lots of responsibilities on network operators and anyone wanting to engage in online activities. This implies that companies wishing to connect online with their customers must pay close attention to the data handled on the various platforms. Cyber space has become the new frontier. iv. Capacity Building is key in ensuring that the right skills are available to perform required tasks efficiently. TESPOK not only offers a robust 6 month internship program but offers additional training to the industry. Over the last 16 years, TESPOK has grown in leaps and bounds enabling it clearly understand what it takes to have the right environment for ICT businesses to thrive in Kenya and the greater East African region. The re-branding efforts undertaking in 2015 couldn’t have come at a better time when Kenya is working to position itself as the region’s ICT hub. This is an effort TESPOK strongly supported and sought for grant assistance from the African Union to enable the Kenya Internet Exchange Point grow into a Regional Internet Exchange Point. We look forward to welcoming membership from other countries in the region as well as all the local ICT players who are yet to join.
Nairobi OUTCOME A VERY PLEASANT SURPRISE
By Keith M. Rockwell
30 I PRIVATE SECTOR I JANUARY - MARCH 2016
If truth be told, it was an outcome that few predicted.
n the run up to the WTOâ€™s 10th Ministerial Conference held in Nairobi last month, the pundits and prognosticators were united in predicting that this meeting would end in failure and disunity. The story line was that WTO and the multilateral trading system would be cast aside and all future efforts at trade reform would take place regionally or bilaterally. Yet, when Cabinet Secretary Amina Mohammed gaveled MC10 to a close after a grueling week of negotiations, the 162 members of the WTO had made history. In the space of those few days, Ministers had agreed to the most significant agriculture trade reform in decades, had created important new trading opportunities for entrepreneurs in the worldâ€™s poorest countries and had added two Least Developed Countries -- Liberia and Afghanistan -- to the swelling ranks of WTO Members. Beyond this, cotton producers in the LDCs will no longer face either quotas or tariffs on their exports cotton and certain cotton products to advanced countries and some emerging countries, including China. Separately, 53 WTO members concluded an agreement that would remove barriers to trade for 201 information technology products including GPS units, medical devices, latest generation semiconductors and video games. The annual value of trade in these products comes to $1.3 trillion, or about 10% of total trade each year. SOME FAILURE, SOME DISUNITY. True WTO Members could not agree on the future of the 14 year Doha round of negotiations. But they did commit to continuing negotiations on the crucial Doha issues -- agriculture, industrial goods, services, fisheries subsidies --
and on the key development principles that have been so central in the Doha talks. It remains unclear, how these negotiations will proceed. But the importance of these issues and the desperate need to jump start sluggish global trade, provide a powerful incentive to negotiators who, after all, are united in their belief that the global trading system is in need of further reform. The pre-Nairobi pessimism of the cynics was understandable. WTO Ambassadors had set a tall order for their Ministers, leaving Geneva for Nairobi with so many issues still to be decided. The lionâ€™s share of issues were bundled up and dispatched to their Ministers for resolution at the Conference. There was general acceptance of some elements of the draft Ministerial Declaration dealing with the basic work of the organization and the current state of the global economy. But issues pertaining to agriculture, the Least Developed countries and the vitally important question of how the WTO would manage its future negotiations were still on the table.
Beyond this, cotton producers in the LDCs will no longer face either quotas or tariffs on their exports cotton and certain cotton products to advanced countries and some emerging countries, including China.
JANUARY - MARCH 2016 I PRIVATE SECTOR I 31
WTO officials are fond of saying that if a Ministerial Conferences is to succeed it is vital that virtually all matters be resolved in Geneva ahead of time leaving Ministers with a manageable handful of questions to settle at the meeting itself. This remains wise counsel. Negotiations at a Ministerial Conference are not for the faint of heart. Brokering consensus among more than 160 Ministers on a large array of complex and politically sensitive issues in only three or four days under the glare of global media spotlight is an extraordinary test of skill and stamina. YET IN NAIROBI, AS IN BALI AT MC9 TWO YEARS EARLIER, MINISTERS PASSED THIS TEST. It was not easy. The level of negotiating intensity in Nairobi was such that the Conference needed to be extended an extra day. Even then, the final agreements were not struck until night had fallen. But key players showed the necessary flexibility and political will at the critical junctures, CS Amina and DirectorGeneral Roberto Azevedo displayed great leadership in conducting the negotiations and the entire membership demonstrated patience and determination in crafting a compromise acceptable to all.
32 I PRIVATE SECTOR I JANUARY - MARCH 2016
This WTO Ministerial Conference was the first to be held on African soil. The government and people of Kenya wanted us to be there. The effort expended on our behalf was monumental. To let down the people of Africa, of Kenya and of Nairobi was, for most delegates, an unthinkable proposition. This explains why all delegations were steadfast in their view that whatever the outcome at MC10, it had to bring benefit to Africa. Did we succeed? Consider the achievements:
Brokering consensus among more than 160 Ministers on a large array of complex and politically sensitive issues in only three or four days under the glare of global media spotlight is an extraordinary test of skill and stamina.
FROM JANUARY 1 OF THIS YEAR, DIRECT EXPORT SUBSIDIES PAID BY ADVANCED COUNTRIES TO THEIR FARMERS HAVE BEEN ELIMINATED; Developing countries providing such support will phase it out by 2018. Disciplines have also been agreed which would bring the extension of government credit for farm exports more in line with market practices. Rules were also agreed that will require governments to take steps to ensure that their food aid programmes do not displace local farmers in countries receiving this aid. Reining in export subsidies was among the highest priorities set by developing countries when the Doha round was launched in 2001. To gain immediate elimination of
the most trade distorting form of subsidy, while curbing other practices which extend unfair advantage to rich country farmers constitutes the most far-reaching farm trade reform in the WTO’s history. EXPORTS OF RAW COTTON AND CERTAIN COTTON PRODUCTS FROM LDC FARMERS HAVE BEEN GRANTED DUTY; free quota free market access in advanced countries and in certain emerging countries, including China. NEW RULES OF ORIGIN GUIDELINES HAVE BEEN AGREED WHICH REDUCE THE ADMINISTRATIVE BURDEN ON THE POOREST COUNTRIES (THE LDCS) AND WHICH MAKE MORE TRANSPARENT WHAT CONSTITUTES A PRODUCT OF LDC ORIGIN. This is important because many advanced and emerging economies extend preferential treatment to exports from LDCs. But taking advantage of these preferences has been difficult because the burden of proving that such products are indeed from LDCs has been onerous. The decision taken in Nairobi states plainly that products where 25% of the value has been added in the LDC warrant this status and removes much of the paperwork required to prove it. This will reduce costs and create new opportunities for LDC exporters. TRADE IN SERVICES IS THE FASTEST GROWING SEGMENT OF WORLD TRADE BUT SERVICES PROVIDERS FROM LEAST-developed countries have yet to benefit as fully from this expansion as they would like. But the agreement reached in Nairobi to extend preferential treatment to LDC services providers should help address this. To date, 21 developed and emerging WTO Members (this includes the 28 countries of the European Union) have notified the WTO of preferential offers which will make it easier for LDC-based lawyers, teachers, accountants, maritime and tourism professionals, truckers and journalists to compete more effectively in these markets. Of the world’s 48 Leastdeveloped Countries, 34 are in Africa and these include all of Kenya’s immediate
neighbours. Greater prosperity on Kenya’s frontiers will bring significant benefit to Kenyans as well as their neighbours. Taken together this represents quite an impressive package for Africa. Is it everything that African negotiators sought? Certainly not. But the measures agreed in Nairobi will doubtless create more opportunities for African entrepreneurs and bring greater equity to the global trading system. Moreover, WTO Ministers committed themselves to continue negotiating on the crucial issues that remain to be concluded. And this brings us to our future work programme. One area where divisions were not overcome in Nairobi was on the future of the Doha round, the possibility of negotiating agreements on new issues and on potential new directions for the negotiations. The debate on this matter was heated in Geneva prior to MC10, and the quarrelling among Members continued in Nairobi. DG Azevedo faces a great challenge in finding common ground here, but he rose to the challenges set for him in Bali and Nairobi and emerged from
these meetings with enhanced support from across the membership. What we must remember though is that all Members agree that negotiations must continue on the critical Doha issues and that development must be central to any outcome. With these principles agreed, surely a way can be found to narrow differences and reach consensus on a package of measures that would inject much needed stimulus to the global economy, create jobs, address the pressing concerns of businesses, generate greater opportunity for developing country entrepreneurs and promote greater equity in the trading system. This may seem a tall order. Some may doubt that we can succeed with what is clearly a major undertaking. But that’s what the naysayers said before Nairobi too. -- Keith Rockwell is Director of the Information and External Relations at the World Trade Organization.
JANUARY - MARCH 2016 I PRIVATE SECTOR I 33
Sustainable Entrepreneurship Social, Economic and Ecological Nexus
Sustainable Entrepreneurship The Social, Economic and Ecological Nexus
The world today is a complex blend of excitements and shifts. To survive, there is need for individuals and organisations to transform ideas into tangible solutions, ByHamilton Omollo
n empowered individual holds change and revolution in his hands, thus can transform destiny. With determination, right tools and good ideas, an individual is poised to tackle head-on any challenge in development and growth. These are people who use entrepreneurial values and approaches to solve major sustainability problems, and have been phrased sustainability entrepreneurs, otherwise called Sustainopreneurs.
purpose and process. Sustainable entrepreneurship is thus, the continued ethical commitment by businesses to contribute to economic development while improving the quality of life in the world and of the future generations. WHY SUSTAINABLE ENTREPRENEURSHIP? The traditional norm towards conservation activities have been that, “let the destroyers rectify it”. Environmental conservation has been left to those industries and corporations who are perceived to cause major destruction. This has not worked well in the world where “common tragedy” is a culture. This is further complicated by realisation that major environmental destructors are consumers.
Preceding this conceptual formation were two traces of social entrepreneurship and eco-preneurship, dealing primarily with the social and ecological dimensions of sustainability. Today, more than any other time in history, greed, industrialisation, globalisation and entire development process have mutilated the very nature, social fabrics and economic values it claims to develop. Sustainable entrepreneurs respond to these problems to make the world a better place through innovative, imaginative and creative solutions. These solutions to the market are creatively organized. Sustainopreneurs look at issues through the lens of sustainability to improve our natural environment, people’s quality of life and at the same time creating non-destructive economic values. They use change-management approaches associated with process adjustment with increased respect to the environment. In essence, sustainopreneurship is a holistic undertaking that meets both ecological and social challenges simultaneously with regard to both
36 I PRIVATE SECTOR I JANUARY - MARCH 2016
Most consumers have four goals in mind when shopping: functionality, price, comfort, and “intangible value. They care less about neither tomorrow nor nature, after all, “we don’t make money, let those earning profits care take care of factors of production.
Sustainopreneurs look at issues through the lens of sustainability to improve our natural environment, people’s quality of life and at the same time creating nondestructive economic values.
Despite large corporations and industries efforts to reduce the vulnerability, there is still eminent lack of flexibility and lack of innovative solutions. This is why individual sustainable entrepreneurs continue to emerge to create the innovative technologies and business models for today and tomorrow. Sustainable entrepreneurship is the solution to necessary transformations for current products, processes and behavioural patterns.
THE NEED FOR SUSTAINABLE ENTREPRENEURSHIP IS HINGED ON THREE MAIN FACTORS: Limited availability of natural resources; Exponential human population growth, and; Current and future generations who have the right to fulfil their needs. These three fundamental reasons bring us to the relationship between sustainable development and sustainopreneurship. Sustainable entrepreneurship nuances sustainable development that is the balance between environmental, social, and economic development. Sustainable development is described as “development that meets the needs of the present generations without compromising the ability of future generations to meet their own needs”. Development requires entrepreneurs as a panacea and sustainability as lifeline or oil that drives the process. These concepts, emery to create business values at the same time developing solutions to sustainability issues. Sustainable entrepreneurship applies business principles to solve social and environmental problems through sustainable business solutions characterized as: Solutions for one specific social and/or environmental problem; clearly defined business models; scalability and inspiration of others to develop their own solutions. DIMENSIONS OF SUSTAINABILITY Sustainability is three-fold; the 3Ps: People, Planet and Profit. This does not only measure ecological, economic and societal values but also capture the same spirit and rive implementation of the same. The process of sustainability is not self-contained in itself. It requires incremental and continuous improvement. Entrepreneurs cannot always achieve everything and to be successful, sacrifices must be made. This is why entrepreneurs are risk takers. It takes process, time, energy, knowledge and dedication to fix a problem. These are character traits and key lessons that sustainable entrepreneurs must observe. In essence,
the “Holy Grail” of sustainability does not exist. Sustainopreneurs should seek to develop smaller scale solutions that can be effective in the long run. SUSTAINABLE ENTREPRENEURSHIP PHILOSOPHY: BALANCING ENVIRONMENTAL, SOCIAL AND ECONOMIC CONCEPTS. There are distinct features or manifestos that distinguish an ordinary business from sustainable entrepreneurship. The latter creates social impact, solves societal problems and enhances social wealth. Sustainable entrepreneurs formulate new ways to create and capture environmental, social, and financial value. They are individuals and corporates with sustainable innovation techniques
DIMENSIONS OF SUSTAINABILITY
PEOPLE, PLANET & PROFIT
JANUARY - MARCH 2016 I PRIVATE SECTOR I 37
that captures unforeseen opportunities by delivering solutions to sustainability issues. Sustainable entrepreneurship is not a goal, but a systematic, dynamic and continuous journey. It aims at constantly improving over the past and over competitions. For example the revolution of M-PESA technology that continues to spiral with multi functionalities including banking services, payment, withdrawals and others. Sustainable entrepreneurs must be well informed with facts. Science only sets the boundaries while people are the greatest source of opportunities. The power of information is unquestionable; a sustainable entrepreneur should use it, share it, filter it, mix it and reflect upon it. For instance, despite numerous advantages of Genetically Modified Organisms (GMOs) this invention is yet to gain ground in Kenya due to inadequate factual information to the people. The context has not been fully understood. SOCIALIZATION The world is flat, a sustainable entrepreneur must capitalize on this fact and create value for people around them. For example, due to globalisation and technology, the internet has proven to be a key tool for sustainable business. Marketing, promotional and even selling applications such OLX are good examples of how one can capitalise on opportunity to create solutions. However, this cannot be efficient without a hub of personal network. Sustainable entrepreneurs should leverage others by giving a voice, connecting and empowering through various media platforms e.g. Facebook, Twitter, WhatsApp. Such platforms create a niche of network and socialisation. Sustainable development and sustainopreneurship nexus is ingrained in sustainability-related problems documented in major international conventions such as the Agenda 21, Millennium Development Goals and World Summit on Sustainable Development amongst others. Areas mentioned with problems to solve, goals to reach and values to create: poverty, health, water and sanitation, education, Climate
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Sustainable entrepreneurship is not a goal, but a systematic, dynamic and continuous journey. It aims at constantly improving over the past and over competitions.
change, rural-urban migration and urbanization, trade justice, food and agriculture, peace and security, social and cultural stability, sustainable production amongst others. Sustainopreneurs need to view these problems as possibilities, obstacles as opportunities, and resistance as a resource, for example tapping on Sun energy to provide alternative source of power. KONEKSIE is an example of successful sustainopreneurship. It is a company that focuses on solutions for social problems in emerging countries. They have developed new and better products that are always part of comprehensive solutions. In addition, Koneksie offers packages that entails training, a maintenance program and insurance for people in the bottom of the pyramid. Their mobility solution, KIBO, produces durable motorcycles at an affordable price. This way, an entrepreneurial spirit is built among the motorists, since they gain a source of income, thus improving their social lives. A research in Indians SMEs revealed benefits of Sustainable Entrepreneurship
as: efficiency in production and services, Enhanced Competitive Advantages, Higher Firm Growth, Higher motivation of Employees, Contribution towards Corporate Social Responsibility, Higher Risk Control and Global Business Opportunities. THE PROCESS OF SUSTAINABLE ENTREPRENEURSHIP For effective sustainable entrepreneurship, sustainable entrepreneurs need to understand and grasp the process that involves a series of activities: identification of opportunities; products that represent an opportunity are efficient, empowering, and nontoxic. Opportunities attached to services involve the provision of goods or services that meet basic needs, empowerment, convenience, and the efficient use of idle functionality. Another process is eco-innovation. Opportunities arise by analysing the products, their lifecycles and value creation. Typically, a product lifecycle includes extraction of materials, processing, manufacturing, distribution, use and end of life. Once an idea has been conceived it leads to solution. Sustainable entrepreneurs should possess design thinking ability for example human centred approaches that develop solutions that meet user needs and create business opportunities. They promote user participation such as observation, visualisation, prototyping of ideas, and iterative development of solutions through user testing with the goal of maturing potential solutions. Design thinking processes are knowing the user, ideas development, prototyping and iterating. Ways to add adopt design thinking includes: partners involvement, asking questions, being user friendly, looking at analogous environments, thinking stories, iterate amongst others.
Once as a sustainable entrepreneur you have played around with your idea, defined its scope and boundaries, and clearly defined how value is created, and for whom, the next process involves testing the idea by getting the opinion of others. Ask friends, experts and industries to react to your idea. FINANCING THE SOLUTION Great sustainable entrepreneurship ideas cost lots of money in many instances. If the solution is truly sustainable, then, it should be financially and economically stable, it will generate revenues. However, many costs have to be paid before seeing the revenue light. There are numerous sources of sustainable entrepreneurial capital. They include: Business angels, people who invest personally in new businesses bringing in combination of wealth and experiences for example private bankers. Other financial sources include venture capital and crowd funding not to mention the traditional forms of business financing. Another crucial process is the development of the business plan. A business plan is a blueprint of the steps sustainable entrepreneur needs to take. It depicts what you want to achieve and how you plan to go for it. It helps and guides the entire exercise enabling focus, Identify potential pitfalls before
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SUSTAINOPRENEURSHIP AT A GLANCE Sustainopreneurship process adds sustainability value into life support systems. It makes bare and explicit the understanding that economic sub-systems such as the market structures are embedded in the social sphere. This in turn, is intertwined in biosphere. It synchronises, harmonises and blends the sustainopreneurial process with life support systems. The result is epitomised in sustainable development in business ventures that respects the present needs and that of future generations guiding everyday interactions.
they happen, Set realistic targets, track growth through monitoring, and sell the idea or business to important external stakeholders. SUSTAINABLE INCLUSIVE BUSINESS (SIB KENYA) SIB Kenya is a Knowledge centre hosted by KEPSA Foundation supported by the MVO Nederland, the centre will be providing hands on information on Sustainable Inclusive Business. SIB Kenya encourages companies to become Future proof Business with positive impact on people, planet and profit. Through its website www.sibkenya. com, SIB Kenya supports businesses on all aspects of Corporate Social Responsibility and sustainability, by providing knowledge, publications, events and practical tools in the field of SIB risk management, starting with SIB, an integrated SIB approach, stakeholder dialogues and transparency. MVO Nederland is involved by bringing its experience and overall sustainable and inclusive knowledge. KEPSA Foundation supports SIB with knowledge, network, guidance and hosting.
Hamilton Omollo is the SIB Kenya, Knowledge and Networks Officer. Other contributors to the stories include: Kaarin, Joshua, Llyord and Nick
SIB will inspire, connect and support companies and sectors in their efforts to make great strides in sustainable inclusive business practice.
REQUEST FOR EXPRESSIONS OF INTEREST(EOI) EOI/KoTDA/020/2015-2016 Investment Opportunities at Konza Techno City The Konza Technopolis Development Authority (KoTDA), the implementing agency under the Ministry of Information Communications and Technology (MoICT) is seeking competent and capable investors that demonstrate the appropriate expertise and experience to invest in the first round of phase 1 of Konza Techno City. Attractive proposals will be selected and allocated parcels of land to develop and operate their facilities through a qualifications-based selection process on the EOIs submitted in response to this invitation. The parcels have been delineated as follows; A. Mixed Use- These are parcels designated for Shopping malls, hotels, retail, mixed commercial and residential use. B. Office Tech- These are parcels designated for commercial space and technology facilities. C. Residential- These are parcels designated for housing including temporary worker housing. D. Community Centre- A parcel designated for churches and other community services. E. Investor driven investmentâ€“ Investors are invited to make proposal on any investment of their choice in the following areas: ICT/ITES, Life Sciences, Engineering, city support services (hotels, schools, hospitals, etc.) or any other Science, Technology and Innovation related facilities. SUBMISSION CONTACT INFORMATION: Chief Executive Officer Konza Technopolis Development Authority 5th Floor Capital West Business Centre Rhapta/Lantana Road, Westlands P.O. BOX 30519-00100 NAIROBI A pre-submittal conference is not scheduled at this time. All questions regarding the project or offer submission to be addressed to via email to: firstname.lastname@example.org and copied to email@example.com by 14th December 2015 at 1700 hours local Kenyan time. SUBMISSION REQUIREMENTS: The organization, content, and cost of preparing each proposal is the sole responsibility of the proposer. The proposal is limited to maximum page limits per section detailed in the REOI, exclusive of the cover page and section dividers. Submissions are encouraged to be brief, concise, to the point, and a minimum of 11 point font shall be used for the text that is specifically created for this proposal. Pre-printed material can be at whatever font that was used to prepare that material. The submission should be one single PDF file, in English, and should not exceed a total of 20MB (zip files are not to be used). Page size can be no larger than 28 centimeters by 43 centimeters. Completed EOIs can be electronically submitted to: firstname.lastname@example.org and copied to email@example.com by 30th January 2016 at 1700 hours local Kenyan time. Mailed or hand delivered submittals sent to KoTDA will not be accepted. KoTDA reserves the right to accept or reject any and all EOIs. Late submittals will not be considered. Complete project information and submission requirements can be obtained by downloading the files at the following web link: http://www.konzacity.go.ke Bidders are strongly encouraged to read the entire Project information and submission requirements.
KONZA TECHNO CITY KONZA TECHNO CITY POISED TO BECOME A SCIENCE, TECHNOLOGY AND INNOVATION HUB
enya is the gateway to East and Central Africa and has the largest and most advanced economy in the region, contributing about 46% of its GDP. In the same view, a report by the African Development Bank recently ranked the country at position six in Africa in terms of attracting direct foreign investment. However, it is noteworthy that most of the countries in the top 10 list have realised the importance of Research and Development (R&D) in accelerating economic development in the world.
markets, enhancing social infrastructure and building national institutions. KTC is the physical embodiment of this Vision – a beacon of excellence for Kenya, Africa, and the world.
Therefore, by embracing innovation, Kenya has the potential to be a leader in foreign direct investment, deriving strength from its national assets, universities and a wide knowledge base, which is amongst the most productive in Africa.
The KTC therefore presents excellent opportunities for local and international investment in: education and innovation centres focusing on Initiative of Technology Enhanced Learning (ITEL); Life Sciences, Engineering and Real Estate including housing estates; recreation and entertainment venues which will be made up of malls and commercial centres; infrastructure (roads, railway, energy and water); city amenities including schools and hospitals; and smart city solutions.
According to the Kenya National Bureau of Statistics, the country’s economy grew by an estimated 4.9% in the first quarter of 2015, compared to 4.7% in the same period in 2014. World Bank reports also indicate that ICT, Agriculture, infrastructure and financial sectors were key contributors to this growth. The ICT sector’s contribution to the GDP can be attributed to the robust telecommunications infrastructure, rise of ICT Hubs, and high capacity international gateways. KONZA TECHNO CITY WAS CONCEIVED TO BOLSTER KENYA’S KNOWLEDGE ECONOMY The Vision 2030 development blueprint envisions transforming Kenya into a prosperous, globally competitive middle-income country by the year 2030. Vision 2030 strategies aim to kick-start this process by transforming employment
Eng. John Tanui Konza CEO
KTC aims to foster R&D by creating an environment that stimulates creative research and technology transfer, facilitates synergies of colocation between innovation and commercialization and foster global partnerships in the export of knowledge, goods and services within the city.
The approach to implementing the project is that the Government of Kenya will put in place the physical infrastructure to pave way for the vertical and other developments by investors. So far, work is going on in earnest which has resulted in the achievement of key milestones, which span water supply, power supply (a substation is being constructed at the site), completion of access roads to individual parcels of land, and completion design guidelines. In addition, the Government is anchoring the project by setting in motion various initiatives: Konza Katumani Road); Construction of new Mlolongo Weighbridge; and Dualizing of Mombasa Road to Machakos turn-off. These will
www.konzacity.go.ke Aerial impression of Phase 1 zeroing in on Phase 1A
significantly enhance access to the KTC. Of particular interest is that negotiations are at advanced stage to set up an international Advanced Institute of Science and Technology at the site. This venture alone will create a near instant on site vitality and resultant spending potential for about 6,500 students. This population will require goods and services in form of shops, malls, housing, social amenities, etc. As well, the University will produce talent, provide research services and establish an innovation brand. CHALLENGES FACING KENYA IN SCIENCE, TECHNOLOGY AND INNOVATION Kenya, as elsewhere on the continent, faces challenges in innovation. Kenya’s Science, Technology and Innovation (ST&I) sector operates in a fragmented way resulting in losing out on benefits of synergy and networking. Apart from an ineffective institutional framework, the national research agenda requires more emphasis. Other challenges include poor linkages between the researchers and industry; inadequate funding, with great over-reliance on external resources; lack of advocacy for ST&I at high political and policy levels; low science culture among the population; relatively low global competitiveness ranking; and weak performance management framework.
Kenya must therefore strengthen its ability to accelerate the commercialisation of emerging technologies, and to capture the value chains linked to them.
Paulo. Some universities in Asia, such as the Hong Kong University of Science and Technology, are emerging as leading research institutions.
Although the private sector will always be central to innovation, the Government can play a key role in ensuring researchers, inventors, entrepreneurs, financiers and other innovators have the best possible environment in which to operate. This can be achieved by improving the interface between higher education institutions (HEIs) and business; and delivering a better environment for commercialising research and innovation.
On the regional front, Ghana is building ‘Hope City’, and Nigeria also embarked on building a smart city. Egypt’s smart village is already thriving and Rwanda is fast emerging as a critical IT destination. South Africa ranks highest in smart technology – Cape Town is world class exemplar smart city.
KONZA TECHNO CITY HAS DRAWN LESSONS FROM OTHER CITIES AND ECONOMIES Fast growing economies like China, Brazil or India are constantly improving their technological space. China, for instance, is set to become the second largest recipient of investment in the world and is already the second largest investor in R&D after the USA.
BE A PART OF A GREAT FUTURE Implementation of Konza is on-going, with the singular objective to “live and work in Konza by April 2017” to start the journey to transform Kenya and Africa.
In the BRICS countries (Brazil, the Russian Federation, India, China, South Africa) high-technology manufacturing trade now represents 30% of their total manufacturing trade. New scientific hubs have been created over the last decade, for instance in Seoul, Shanghai and Sao
These cities, as KTC soon will, have contributed immensely to the growth of their economies by commercializing ICT.
A Request for Expressions of Interest (REOI) has been floated, inviting potential investors to come on board in the first step towards participation in this unique project. Kindly visit our website www. konzacity.go.ke for further details, and be a part of it!
We at Konza Techno City wish all our stakeholders a fruitful and prosperous 2016!
IT’S VALUE In mid-2013, £1 bought you 125 Kenyan shillings; today, you’ll get 152. That means, budgeting on 10,000 Kenyan shillings a day, which will allow you to travel fairly luxuriously, you’re looking at £66 a day, rather than a £77 a day as it would have been two years ago. Over the course of a 10-day holiday, it equates to a saving of £100 per person. VISA MADE SIMPLER Kenyan authorities introduced an e-visa system in September, meaning that British travellers no longer need apply for entry documents before travelling, or queue at the airport for all the right stamps. A single entry visa costs $51 per person (£34) and the e-visa. THE BIG FIVE Kenya is easily one of Africa’s – and the worlds – greatest wildlife watching destinations. The African lion, African elephant, Cape buffalo, African leopard, and white/black rhinos can all be spotted in its reserves, and although the term “Big Five” was originally coined by big game hunters, today the focus has shifted to conserving the species.
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GREATEST MIGRATION OF ANIMALS ON EARTH From mid-August to October, more than a million of wildebeest migrate from the Serengeti in neighbouring Tanzania to Kenya’s Maasai Mara park, accompanied by hundreds of thousands of Thomson’s gazelle, zebra and eland. Despite the plethora of videos and photography of the migration available online, nothing comes close to seeing in person the mass movement of animals, lumbering, strutting and swaying in one of the great wonders (the 8th) of the natural world. OH YEAH! SAFARI FIRST-TIMER’S PARADISE Kenya is definitely one of the best countries in Africa for those on their first time wildlife safari If you take overnight flight to Nairobi from European or other cities, you can be in any park in time for lunch and afternoon game drive… because Kenya’s safari industry is backed up by an efficient tourist infrastructure with a dazzling choice of camps and lodges to suit all budgets.
By Source Market
Reasons why you should visit!
THE BIG CATS All safari experts agree and recommends the Masai Mara as one of the best places in Africa to encounter big cats…Cheetahs and lions roam the plains, waiting for the migrating wildebeest, and leopards pose in its riverside fig trees. In fact, the animals are so associated with this region that the BBC chose the Mara for their Big Cat Diary TV series. THE SAND INDIAN OCEAN BEACHES Kenya’s geography means that it offers the perfect combination of fauna-andflora spotting adventures in its dozens of mighty national parks, and opportunities for lying prostrate on white sand Indian Ocean beaches. After wonderful safari its recommended you move onto a beach hotel for a couple of days of watersports and relaxation. THE BIRD LIFE Kenya has more than 1,000 recorded bird species, including flamboyant crowds of pink flamingos whose massing makes for surreal photographs. They are now in Lake Nakuru Lake Bogoria, Also visit Lake Naivasha, home to Golden-winged Sunbirds, Superb Starlings and African Fish Eagles
SLEEP UNDER STARS Many of private lodges in conservancies offer experience the wilderness by night in private huts open to the skies a 20-minute drive from the main building. Beds – which can be wheeled out into the open or taken inside if the weather turns. EVER CHALLENGING MT KENYA Considered a more challenging climb among mountaineers, Mount Kenya sits in its own national park, amid endemic fauna and flora. The highest of three peaks rises to 5,199m, although this requires a technical climb. Even the lowest of its three summits, though, offers astounding panoramas over the plains and savannah below, and as you ascend through the foothills you may spot elephant, Black Rhino, Cape buffalo, Colobus monkey, antelope and Giant Forest hog. ANCIENT SITES Even for those who sigh at the prospect of poking around old ruins, the former town of Gedi near Kenya’s coast will not fail to captivate. With origins in the 12th century, this Swahili town reached its zenith in the 15th century, and its wealth is indicated by the clusters of mosques, a magnificent palace and houses, all in 45 acres of primeval forest. QUEEN’S FAVOURITE HOTELS Founded in 1932, Treetops is Kenya’s oldest safari lodge, and Princess Elizabeth was in residence here when she was told of the death of her father, King George VI, prompting her ascendency to the throne. ”For the first time in the history of the world,” wrote big-game hunter Jim Corbett in the Treetops logbook, “a young girl climbed into the tree as a princess and climbed down as a queen.’” . YOU CAN EAT BREAKFAST ACCOMPANIED BY GIRAFFES The famous Giraffe Manor in 12 acres of private land in a Nairobi suburb allows guests to participate in sunset feeding sessions, and the herd of Rothschild giraffes that live here will often poke their
heads through the manor house windows for extra treats. GREAT RIFT VALLEY Maasai herders, herds of elephant, wide plains and dramatic escarpments all define the Great Rift Valley, which reaches through Kenya as part of a 6,000-km long scar that stretches from Jordan in the Middle East across Africa to Mozambique.
KAREN BLIXEN’S HOME The author’s former home in Nairobi is now a museum – the farmhouse contains rooms decorated with props from the 1985 film. The grounds have original equipment from the coffee farm, as well as peaceful gardens and lush forest, with views to Karen’s Ngong Hills.
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SOUTH COAST: WASINI ISLAND DHOW Sail to Kisite marine national park where you will snorkel and swim. Kisite Marine national park is the second most famous marine park in the world after the Australian Marine Park. It covers an area of 30km2. Animals seen here include turtles, marine tortoise, bear reefs, coral reefs and different types of marine fishes. After lunch which is mainly sea food and Swahili dishes, you will sail along the mangrove swamps and then visit the Wasini Island where you will learn more about the Swahili people and the Arabs history.
THE AMAZING JADE SEA - LAKE TURKANA Lake Turkana is an outstanding laboratory for the study of plant and animal communities. The three National Parks serve as a stopover for migrant waterfowl and are major breeding grounds for the Nile crocodile, hippopotamus and a variety of venomous snakes. The Koobi Fora deposits, rich in mammalian, molluscan and other fossil remains, have contributed more to the understanding of paleo-environments than any other site on the continent.
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KENYA PROPERTY DEVELOPERS ASSOCIATION
THE KENYA PROPERTY DEVELOPERS ASSOCIATION VALUE CHAIN Let KPDA become your partner in advocacy, education, information, research and helping develop your business.
The Kenya Property Developers Association was established in Nairobi in 2006 as the representative body of the residential, commercial and industrial property development sector in Kenya. It is an emerging Business Member Organisation which works in proactive partnership with policy-makers, financiers and citizens to ensure that the property development industry grows rapidly but in an organized, efficient, economical and ethical manner. Our current membership stands at 85 members. THE ASSOCIATION’S STRATEGIC OBJECTIVES INCLUDE • working with the Government and other stakeholders to promote policies that stimulate the property sector
WHY JOIN KPDA FAMILY? Working Closely with government institutions
• contributing to excellence in building through promotion of world-class ethical standards and educational programs • compiling focused research and analysis to inform investment decisions, policy analysis and public education • developing new financing mechanisms to help low and middle income Kenyan families own homes • providing a forum where property investors can share expertise and build business contacts • harmonising development activities with citizen concerns, like neighbourhood associations and environmental preservation groups.
Working Closely with regulatory Authorities
Access to potential investors
Increasse your business profit Strategic partnership to ease land processes
Opportunities for forming joint ventures with National and International industry players
Our members enjoy the following: 1. Advocacy that champions the interests of the industry to both the public sector and the wider private sector to ensure a better business environment for the property industry; 2. Information on the latest issues affecting the industry, via regular publications, newsletters, media reports and research; 3. Networking events, putting members in touch with industry leaders and potential clients; 4. Professional development courses which reflect the changing
nature of the property industry; 5. Marketing opportunities for member companies with discounts offered to various advertising platforms; 6. Discounted rate at both KPDA events and events organized by international and regional organizations in the building and construction industry; 7. Access to emerging markets and exposure to joint venture opportunities.
While KPDA membership is open only to companies, the benefits of membership extend to all staff in member companies.
Development brings development! Become a part of this formidable family! For more information, Kindly contact our KPDA secretariat Fatima Flats, Suite B4 ,Marcus Garvey Road Off Argwings Kodhek, Kilimani Area P. O. Box 76154 – 00508 Nairobi, Kenya. Tel: +254 737 530 290 / +254 705 277 787 E-mail: firstname.lastname@example.org
BRIGHTEN UP YOUR IDEAS LET THEM FLY HIGH Corporate branding that creates unique identities that foster recognition and inspire loyalty
email: email@example.com web: www.brandeffectsea.com tel: +254 020 211 0780 / +254 020 211 3096 cell: +254 722 352 350
Makings of Success Tabitha Karanja
Henry Githaiga gets to explore the perspective on what drives her and her vision for the future
MAKINGS OF SUCCESS
She has been touted as one of the iron ladies of Kenyan business for her strong determination and resolve to succeed in one of the toughest industries. At 51 years, Tabitha Karanja is one of Africa’s leading female entrepreneurs with globally recognized awards for her pioneering spirit. Her brainchild Keroche industries which she co-founded with her husband Joseph Karanja in 1997, is today one of Kenya’s leading brewers with 11 brands ranging from beers to wines and spirits.
HUMBLE BEGINNINGS abitha Karanja was born and brought up in Kenton Kijabe and was the first born child in a family of ten. Her father was a driver cum mechanic with the ministry of forestry while her mother was a small scale farmer. Times were tough for the family and as the first born Tabitha had to step up and help out to make ends meet.
‘I started taking up responsibility at an early age, it is what drives me to date. I was determined to make a better life for myself and my family. Because of the poverty I had seen I had to get good grades in school and excel to ensure I get a good job. I believed that if I failed in school things would get worse.’ Mrs. Karanja says. ‘I knew that the way we were living was not right, that someone had to step up, work hard and pull us out of poverty.’ The straggles of the village seem to invoke better sweet memories for Mrs. Karanja who is now determined to make a difference in her rural home starting with scholarships for children in her rural primary school, Kiambogo. According to Mrs. Karanja technology has changed everything enabling young people to access information and build up role models to inspire them. ‘Back then there wasn’t much to look forward to, we had no real role models to look up to. Everything was material, we saw how well the teachers and the police were living but I did not want to take up either of those careers. In those days we did not have television like you do today, there was just maybe a radio at home that only your father turned on to listen to the news and then turned it off. We did not have the same kind of access to information, in those days you had to be self-driven and motivated. I knew then that my circumstances can change with hard work. Even if you are born into hardship, it’s not the end of your being, that’s not why God made you. I wish everybody knew that it’s not where you are from that matters but what you do to change it.’
MAKINGS OF SUCCESS
would not have finished school.’ It was during her employment, that she met her husband Joseph Karanja who was at the time running a hardware shop in Naivasha. There after Tabitha quit her job to help manage the hardware shop. ‘I saw potential in the hardware shop and I thought we could grow it into something bigger. While I was there, I realized that everything in that shop was manufactured, from the paint, brushes, cement, iron sheets… so we began a discussion with Mr. Karanja. We wanted to become manufacturers though we did not know what we could manufacture. We did some research and found a gap in the liquor market. The lower end consumers were really neglected and had little choice. The multinationals had left the lower end without quality products and as a result people were drinking whatever was available regardless of its effects on them.’ It was then that is Keroche Industries was born offering their premier brand which was a fortified wine.
When we got into the market we found an established monopoly by multinationals who had gone unchallenged for over 80 years, it was not easy to break in despite the fact that we were servicing a market segment that was neglected.
BEYOND ADVERSITY Despite her determination to succeed her economic reality held her back from pursing her dream to seek higher education. ‘I was one of those students who topped the class, but in the middle of my A levels I had to drop out and missed a whole term of school. We had to try and fund raise to get me back into school, but by the time I got back into school the damage had been done and my grades slipped, I was now an average student. I was not able to continue my with my education so I worked for the ministry of tourism as a librarian. That’s why you hear people say from librarian to entrepreneur.’ She laughs. ‘But I loved that job because I love reading. Being a librarian enabled me to work and study and I got my diploma shortly after from a polytechnic. Without that library I
TURBULENT TIMES Having identified a niche for their business the Karanjas’ gave up their home to enable them put up a small brewery with their first distillery producing 200,000 litres per year. They then consolidated their savings to capitalize the Startup. But if they thought the journey would be easy their resolve would soon put through what is perhaps the longest battle for survival that any company has had to face in Kenya’s corporate history. ‘When we got into the market we found an established monopoly by multinationals who had gone unchallenged for over 80 years, it was not easy to break in despite the fact that we were servicing a market segment that was neglected.’ The array of assault on the young industry took on various forms with a smear campaign on Keroche classifying the company’s products as harmful and dangerous to consumers. The assaults went as far as directly seeking to discredit Mrs. Karanja and her gender by
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MAKINGS OF SUCCESS
Tabitha Karanja won the Business Woman of the year award for the East African round of CNBC Africa All Africa Business Leaders Award (AABLA) in Nairobi, recognizing her as a game-changer in the region.
comparing her to village brewers popularly referred to as ‘Mama pima’. But if her rivals thought she would give in without a fight they had grossly underestimated her resolve. ‘It started with a smear campaign that went all the way to the floor of parliament, after winning that it was punitive taxation and demand for unexplainable taxes, then came the unethical trade practices; we would put up billboards and they would be vandalized and bring them down, bar owners would be victimized for selling our stock… I sought help from government and parliament but I realized no one was going to help out, so I went to the market and let the market be my judge. I won over the consumers and got public support for my brands.’ The newly found public support soon paid dividends and Keroche Breweries had to expand its plant to meet growing public demand. But even then the rivalry would not let Keroche continue to gain a larger market share, new legislation was introduced under which all alcoholic beverages were to only be packaged in glass bottles. This posed a challenge for Keroche which at the time was packaging its wines and spirits in plastic bottles. The legislation threatened to cripple the business as the only one of its products
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was bottled in glass. The in one sweeping policy 80% of the company’s net income would be whipped out.
I sought help from government and parliament but I realized no one was going to help out, so I went to the market and let the market be my judge. I won over the consumers and got public support for my brands.’ ‘In one budget our product cost was tripled putting out of reach for our target market. I had to go back and rethink, I had been in the market for 10 years and there was no way I was going to give up my market share. The policy cracked down on PT bottles, but looking across the markets the products in other markets were still accepted in that form of bottling. Unfortunately I was alone in that battle and we had to seek credit to put up two new bottling lines.
EXPANSION PLANS I had to borrow over Sh. 1 billion though we were already in the process of expanding our brewery causing a one year delay in our expansion plans. The cost on our business was also great because we lost a quarter of our market because we could not meet the demand for our products.’ According to Mrs. Karanja the good will from the public coupled with sound financial management and business planning enabled Keroche to obtain credit to overcome the challenges facing the business and pave the way for its expansion. ‘As an entrepreneur you should not be afraid to take credit because you will never have enough capital to get to the next level on your own. However before taking up credit you must have a sustainable plan that will prove to your creditors that you can repay. This is also good for you as a person because with a sound plan you will not put undue pressure on yourself and your finances. Your money has to work for you. What kept me going is the fact that I knew that it has not been easy for local manufacturers to compete with multinationals. We had been relegated to suppliers and distributors. I realized
MAKINGS OF SUCCESS
that the fight was not just about me, if I gave in; local manufacturers looking to compete with multinationals would be afraid to take them on, I had come too far to give in. I also needed to show other entrepreneurs and women in particular that we could do it. I also had to think of my employees who were looking up to me to ensure they maintained their jobs. It was not easy back then but now, nothing can stop me.’ Having started off with 5 employees and a small distillery Keroche has grown into one of Kenya’s leading brands with a production capacity of 1 million hectoliters’ employing over 320 employees and creating thousands of indirect jobs across the country. THE GENDER BIAS From the beginning the odds were stacked against Mrs. Karanja as the liquor market was a male dominated world, from the main consumers to distributors and bar owners. Though the market may not have been ideal or ready for her, she was ready for it and that was all that mattered to her. ‘People keep on saying it is a male dominated world, but as a person I do not believe that business has a gender. There is no business meant for men or for women. If you want to do something just get into it and you will be surprised to see that you can do it better than everyone else.’ She smiles rather reflectively. ‘Funny enough for me as a woman it has been easy, being a woman actually helped me. I believe that if a man faced the same challenges he would not have made it. Everybody listens to me they say ‘what is Tabitha saying, what is this woman trying to show us’ when they listen to you, you set the record straight. But if it were a man making claims that there are smear campaigns against his brand no one would listen they would expect him to just fight back and not complain.’ SHE HAS A FEW WORDS OF INSPIRATION FOR WOMEN. ‘The most important thing is to identify that gap that you are looking to fill and exploit the opportunity to the best of your ability. However you must believe in yourself,
because after you get in people will talk, in my case they said ‘this is alcohol a woman has no business being here this is a man’s business’ people will tell you that you are doing the wrong thing, you cannot make it. But when you believe in yourself, people will come around. You need to be focused and have a vision to build your company to the next level through hard work and determination. As a woman do not get into a comfort zone because society expects you to just believe in yourself. As an entrepreneur you must not easily be satisfied, I see some young people make their first million and think they are fine and they can go home now.’
The awards motivate and inspire me, they have made me humble so that I can appreciate what others have done for me. Because of those awards I feel I have to help others and give a hand up, let them know they can make it. AT THIS POINT I AM CURIOUS TO FIND OUT WHAT HER MAGIC NUMBER IS ‘Funny enough it’s not about money anyone who wants to go anywhere or be someone knows that money will limit you. It is about the opportunity that is present, for us it’s about Kenya all 47 counties then the region and Africa as a whole. Why can’t I sell summit in America and Europe? Go for the full potential. Forget about your account and how much money is there, even if you tell me I have Sh. 20 billion in my account and summit is not all over Africa then the money cannot motivate me. How much market share can I get in Kenya, Nigeria, South Africa, Europe…’
SO WHAT IS SUCCESS TO HER? ‘To me success in business is when I can walk into a bank and borrow money to expand, when I have a globally competitive brand. The investment you make should be able attract international investors. As a person you have to set targets, go for them and beat them. How far can we go? That is my measure.’ Her enduring spirit has propelled her to great heights winning her both local and global accolades including; The Forbes Africa Business Woman of the Year 2014 and the much coveted Transformational Business Award 2015 by the Africa Leadership Network. ‘The awards motivate and inspire me, they have made me humble so that I can appreciate what others have done for me. Because of those awards I feel I have to help others and give a hand up, let them know they can make it. As local companies we can compete and build international brands that is why I started Keroche Foundation. As Africans we should see the opportunity to invest in ourselves and our continent instead of leaving investment to foreigners. Keroche Foundation will take 10 entrepreneurs every year through a mentorship and training program to challenge them to aim higher and even be more successful than we have been. We shall walk them through the entrepreneurship journey.’ WORK LIFE BALANCE All through her 19 year tenure as the Chief Executive and Founder of Keroche Breweries Tabitha Karanja’s marriage has remained a puzzle to on lookers with many queries on her role as a wife and a mother of four. For Tabitha who prefers to be addressed as Mrs. Karanja it has been an easy balance due to her ability to shield her family life from the glare of the public eye. ‘I always find that to be a very interesting question, people say that they do not see my husband. Because of our culture, women are expected to get married settle down have kids and care for the family. When we get married we tend to settle down and I hear many women say they do not get the support of their husbands,
JANUARY - MARCH 2016 I PRIVATE SECTOR I 53
MAKINGS OF SUCCESS
Do not be afraid of external forces and pressure, never give up, immediately you win the first round you move to the next level and each battle in your journey prepartes you for the next challenge. Every year I have a fight, so even in 2016 am not sure of what they will throw at me”
but as for Mr. Karanja he supported me. When he saw what I wanted to do he gave me all the drive I needed. I call him my boss because he is the chairman and as the chairman he supports me because every worker needs a supportive hand and advice to do their job effectively. I try to accord the same level of support to my employees.’ For many women the work-life balance remains a modern day challenge that Mrs. Karanja says should not deter them from playing their social roles while at the same time maintaining their positions as entrepreneurs or top level executives. ‘Family is what is most important for anyone, for a woman it is also the strongest social measure. You must be able to balance your life. I am a mother and a wife, I do not shy away from those roles because even as my kids grow up they want to feel my love and support. I am happy that my family has supported me to the extent that I am where I am today and I have also inspired my children to follow their dreams.’ Having undergone great challenges in her bid to realize her dream Mrs. Karanja feels that entrepreneurs should be prepared to face the challenges that come with competition as the road to success it riddle with many obstacles ‘Do not be afraid of external forces and pressure, never give up, immediately you win the first round you move to the next level and each battle in your journey prepares you for the next challenge. Every year I have a fight, so even in 2016 am not sure of what they will throw at me’ She laughs out loud with a sense of passion and pride of place ‘every year I fight and it prepares me to fight and keep going, I become stronger with every challenge. As an entrepreneur you must be ready to defend your dreams and to do that you need to have a passion for your business. It is that simple.’ We at the Private Sector Celebrate Mrs. Tabitha Karanja for her pioneering spirit and determination to succeed, paving the way for Women in business.
54 I PRIVATE SECTOR I JANUARY - MARCH 2016
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Major Engagements >>>
KEPSA hosts WTO reception dinner
KEPSA HOSTS A SPECIAL DINNER WITH EALA AS PART OF ITS REGULAR ENGAGEMENTS WITH REGIONAL STAKEHOLDERS The Kenya Private Sector Alliance (KEPSA) hosted a special dinner with the East African Legislative Assembly (EALA) at the Serena Hotel on 13th October, 2015. During the dinner, discussions revolved around legislations that are before the Assembly along with other upcoming Bills that are of interest to the Private Sector.
Right-L: Tourism CS Najib Balala, KEPSA Chairman Amb. Dennis Awori, Foreign Affairs and International trade CS Amb. Amina Mohamed, KEPSA CEO Ms. Carole Kariuki and WTO Director General Roberto Azevedo during the 10th WTO reception dinner hosted by KEPSA.
KEPSA hosted a reception dinner for delegates attending the 10th WTO Ministerial Conference on 15th December, 2015 at the Kenyatta International Convention Center (KICC). The dinner offered the delegates a chance to interact with the local business community and sample Kenya’s world renowned hospitality. Emphasizing the spirit of public private dialogue, KEPSA CEO highlighted the efforts KEPSA, the Government of Kenya and Trademark East Africa (TMEA) have made to provide an enabling business environment and in particular the progress made in the area of trade facilitation both in Kenya and across the East African Community. IN PARTICULAR, INCREASED TRANSPARENCY
Trade facilitation has helped in increasing transparency in respect to regulations and helping to coordinate and harmonize trade procedures within the EAC Partners States. CUSTOMS CONSOLIDATION
EAC is consolidating its Customs Union through the operationalization of a Single Customs Territory launched on 1st January 2014 with
the objective of easing the flow of goods and services as well as reducing the cost of doing business across the region. INCREASED EXPOERTS
Intra-EAC trade has increased and is now close to 20% of total exports of EAC Partner States. The delegates were urged to give their best to the MC10 talks. Coming on the heels of the recently concluded and highly successful climate change talks in Paris, delegates were urged to ride this momentum and purpose to reach a deal on the implementation of the WTO Trade Facilitation Agreement. They were also asked to apply both their social and political will towards the resolution and conclusion of trade negotiations with the view of increasing access to markets across the board. The delegates were encouraged to visit the tourism facilities around Nairobi to experience Kenya’s recreation and entertainment scene; singling out the Nairobi National park which offers a one of a kind experience as the only National park within a major city.
58 I PRIVATE SECTOR I JANUARY - MARCH 2016
The Private Sector is keen on ensuring that laws and policies are in place in order to facilitate and promote business within the East African Community (EAC). KEPSA’s engagement with EALA reflects the understanding between the Private Sector and legislative arms in ensuring that regional integration aids the growth of regional economies. EALA has played a critical role in intervening negotiations and deliberations on regional integration. During the meeting, it was pointed out that the elimination of NonTariff Barriers (NTBs) is critical in facilitating trade. In this case, EALA was urged to work towards operationalizing the existing dispute resolution framework in order to sanction members who are not complying. In order to deepen regional integration, there is need for EALA to fast track pending Bills such as; the EAC Anti-Counterfeit Bill; EAC Trade Negotiations Bill among others. The Private Sector pointed out the need to review the Common External Tariff (CET) so as to help respond to current needs of integration and the common market. As is the CET is not considered fully responsive to the needs of business operating in the region. EALA has already passed the Non-Tariff Barrier (NTB) Act which is now due for presentation to the Council of Ministers and ultimately to the heads of state for ratification. In addition to these EALA has already enacted other key laws geared towards enabling the free movement of goods and services including; laws on vehicle load control, one-stop border posts among others.
KEPSA CEO Ms. Carole Kariuki makes a presentation during the 5th Presidential Round Table
The 5th Presidential Round Table H.E President Uhuru Kenyatta hosted the 5th Presidential Round Table on Friday 13th November, 2015 at State House Nairobi.
The meeting also reviewed progress on key commitments made at the last Presidential Roundtable held on April 2, 2015.
The meeting brought together the Executive, Legislature, Judiciary, County governments and the Private Sector under the umbrella of KEPSA to discuss issues affecting the local business environment.
The meeting was held in two sessions. The first session was attended by the KEPSA leadership team together with Government while the second session was a luncheon with all KEPSA members, Government, development partners,
media and other stakeholders and partners. THE MORNING SESSION FOCUSED ON:
Enhancing Kenya’s Competitiveness and the Development of Small and Medium Enterprises.
KEPSA MEETS WITH COUNTY EXECUTIVES TO REFLECT ON COMPETITIVENESS IN THE COUNTIES The Kenya Private Sector Alliance convened a two-day retreat with County Executives – the equivalent of Cabinet Secretaries in the Counties from 26th – 30th November, 2015, at Leisure Lodge Beach Resort- Diani, in Kwale County. The retreat sought to review the opportunities and challenges facing the Private Sector in doing business in the Counties. The central theme was on improving competitiveness in the Counties through deepening engagement with the Private Sector.
Counties have great potential to create thriving economies. Enhancing competitiveness will attract increased investment and assist Counties create wealth and employment opportunities. The need for effective cooperation between the Private Sector, national and county governments is key in addressing all the critical elements necessary in creating a competitive environment for business. County governments were encouraged to play their part in supporting the war against corruption by taking specific
measures to enhance accountability in the management of public resources. Public tenders were identified as a good source of projects and funding for SMEs, which could help SMEs build up a good track record, brand, and certification of quality and standards. On the development of SMEs, KEPSA will partner with Counties that express interest to support and promote the roll-out of the proposed SME maturity model working through the existing and established structures in the Counties.
JANUARY - MARCH 2016 I PRIVATE SECTOR I 59
The 11th Northern Corridor Integrated Projects Dinner On 16th October, 2015, KEPSA hosted a dinner for the regional private sector delegates, high-level government representatives from the Northern Corridor Integrated Projects Partner states and development partners. The Northern Corridor Integration Project (NCIP) is the transport corridor linking the landlocked countries of Uganda, Rwanda, South Sudan and Burundi to Kenya's Maritime Port of Mombasa. The transport corridor also serves the Democratic Republic of Congo and Northern Tanzania. The Northern Corridor Integration Projects initiative is designed to generate sustainable political will necessary to fast track the implementation of the projects identified. KEPSA welcomed the decision by the heads of state to actively incorporate the private sector in the implementation of key infrastructure projects. The inclusion of the private sector in regional projects will safeguard local industries and foster the development of value chains resulting in wealth creation and employment for member states. The dinner was a unique forum for private sector players drawn from NCIP member states to discuss the available investment opportunities and forge partnerships across the region. The key areas of concern for the private sector include land acquisition and community expectations for various projects within the Northern Corridor. The private sector called on the governments to ensure adequate and timely compensation while at the same time managing community expectations to avoid delays arising from disputes with communities and land owners.
KEPSA Chairman Ambassador Dennis Awori during the Northern Corridor Integration Projects dinner hosted by KEPSA..
60 I PRIVATE SECTOR I JANUARY - MARCH 2016
The Dinner was attended by Senior Government officials from Kenya, Uganda, Rwanda and South Sudan; private sector players from NCIP implementing Countries and Development Partners.
Top Chief Executives and Business leaders listen in to proceedings during the launch of the fourth phase of the Mkenya Daima Campaign.
Launch of Mkenya Daima phase four On 10th November, 2015, The Kenya Private Sector Alliance Foundation unveiled the fourth phase of the Mkenya Daima Campaign, aimed at addressing the National values and responsibility for prosperity
The Mkenya Daima Campaign was born out of the need for private sector intervention in social and political matters after the 2007/8 post poll violence. It seeks to offer a platform for national unity and peace building among Kenyans. THE FIRST THREE PHASES OF THE MKENYA DAIMA CAMPAIGN WERE: PHASE I:
Mwenye-nchi sio Mwananchi - whose aim was citizenship awareness and commitment to peaceful elections….. MY KENYA IS (March-June 2012) PHASE II:
Celebrating Kenya and handling the negatives that divide us as Kenyans…MY KENYA IS NOT- (July-November 2012) PHASE III:
Rights with Responsibilities…Our rights call for our responsibility and each Kenyan
is responsible for Kenya. MY KENYA WILL BE (November – May 2013) The campaign will continue to play a role in national cohesion and peace building. The fourth phase of Mkenya Daima is aimed at addressing the challenges facing the country and its social-economic impact by encouraging the adoption of national values, instilling a sense of responsibility and fostering character change at individual, institutional and national level. The fourth phase will also be built around the social pillar of the Vision 2030 whose main aim is to build a just and cohesive society with social equity in a clean and secure environment. The Campaign will seek to bring together other stakeholders including Civil Society, Media, Religious groups, Development Partners, Youth and the political class.
JANUARY - MARCH 2016 I PRIVATE SECTOR I 61
KEPSA MEMBERS 2015
BUSINESS MEMBERSHIP ORGANIZATIONS (BMOs) 1
African Women in Agribusiness Network - Kenya Chapter
Kenya Motor Repairers Association
Agricultural Employers' Association
Kenya National Chamber of Commerce & Industry
Agricultural Industry Networks Limited
Kenya National Farmers' Federation
Agrochemicals Association of Kenya
Kenya Oil & Gas Association
American Chamber of Commerce of Kenya
Kenya Private Schools Association
Aquacultural Association of Kenya
Kenya Property Developers Association
Architectural Association of Kenya
Kenya Renewable Energy Association
Association of Chartered Certified Accountants
Kenya Security Industry Association
Association of Consulting Engineers of Kenya
Kenya Ships Agents Association
Association of Gaming Operators-Kenya
Kenya Tea Growers Association
Association of Insurance Brokers of Kenya
Kenya Tourism Federation
Association of Kenya Insurers
Kenya Water Industry Association
Association of Practitioners in Advertising
Marketing & Social Research Association
Association of Small and Medium Energy Contractors
Marketing Society of Kenya
British Chambers of Commerce Kenya
Matatu Owners Association
Clean Cookstoves Association of Kenya
Media Owners Association
Delegation of German Industry and Commerce of Kenya
Micro& Small Enterprises Federation
East Africa Venture Capital Association
National Association of Private Universities of Kenya
East African Tea Trade Association
National Potato Council of Kenya
Eastern Africa Grain Council
Oil & Gas Contractors Association of Kenya
Federation of Kenya Employers
Federation of Women entrepreneur Associations
Organization of Women in International Trade (Nairobi Chapter)
Outdoor Advertising Association (K)
Institute of Certified Public Accountants of Kenya
Petroleum Institute of East Africa
Institute of Certified Public Secretaries of Kenya
Producers' Guild of Kenya
Institution of Engineers of Kenya
Protective Security Industry Association
Kenya Agribusiness and Agroindustry Alliance
Pyrethrum Growers Association
Kenya Association of Air Operators
Retail Trade Association of Kenya
Kenya Association of Independent International Schools
Roads & Civil Engineering Contractors Association
Kenya Association of Manufacturers
Safaricom Dealers Association
Kenya Association of Tour Operators
Seed Trade Association of Kenya
Kenya Association of Travel Agents
Shippers Council of Eastern Africa
Kenya Association of Women Business Owners
Kenya Association of Women in Tourism
Telecommunications Service Providers Association of Kenya
Kenya Auto Bazaar Association
The Chartered Institute of Arbitrators
Kenya Bankers Association
The Kenya Chamber of Mines Company
Kenya Forex and Remittance Association
The Kenya Flower Council
Kenya Healthcare Federation
United Business Association
Kenya Institute of Supplies Management
Wide Vision Investors and Business
Kenya IT & Outsourcing Services
Kenya Miners Marketing Cooperative Society
Kenya Motor Industry Association
62 I PRIVATE SECTOR I JANUARY - MARCH 2016
KENYA PRIVATE SECTOR ALLIANCE
Influencing PUBLIC POLICY through POLICY FORMULATION and IMPLEMENTATION
THE KENYA PRIVATE SECTOR ALLIANCE (KEPSA) IS THE VOICE OF THE PRIVATE SECTOR IN KENYA AND IS THE UMBRELLA BODY FOR PRIVATE SECTOR ASSOCIATIONS AND CORPORATE BODIES IN ALL SECTORS OF THE ECONOMY INCLUDING TRADE ASSOCIATIONS. KEPSA speaks for multinationals, SMES and startups organized under different sector boards and working groups reflective of the 16 sectors of the economy. KEPSA HAS OVER 100,000 MEMBERS THROUGH BUSINESS MEMBER ORGANIZATIONS AND COMPANIES. • It provides a platform for the private sector to engage in Public Private Dialogue at Local, National and International level. • It also offers information, advisory and networking opportunities for members. • it is a key partner to government and other stakeholders in the formulation and implementation of policies and strategies geared towards spurring economic growth, wealth creation and national development.
Timothy Odongo, firstname.lastname@example.org I tel: +254 20 273 0371 Contact us: Pascalina Kagunda, email@example.com I mob: 0720 340 949371 Visit www.kepsa.or.ke to find out more
KENYA PRIVATE SECTOR ALLIANCE Membership Application Form
MEMBERSHIP APPLICATION FORM Name of Organization Physical Address
Email (s) Contact person Telephone
Nature of Business
Sector Please check the field applicable Corporate Membership
Categories of Membership
MEMBERSHIP RULES 1. New Members will be required to pay a one-time joining fee of Ksh.10,000/= 2. Membership runs from January to December of every year. 3. Subscriptions received by 31st January attract a discount of 5%. 4. Normal rates apply from February to December 5. Members who will have not paid up by 31st march (at least a deposit) will miss out on being active members 6. Subscriptions can be prorated for members who join within the year 7. Installment payments are acceptable
Code of Ethics for Business in Kenya Letter of Commitment & Engagement
As a company doing business in Kenya, and in my capacity as the CEO/Chairman of ------------------------------------------------------------------------------------------------------- (please write name of company), I hereby express my companyâ€™s voluntary will and commitment to: (Please tick applicable box): Support and implement the Code of Ethics for Business in Kenya as per category 1 Support and implement the Code of Ethics for Business in Kenya as per category 2 In order to demonstrate our commitment to this Code in the Category chosen, we shall endeavour to do the following: 1)
Our company and its entire staff will aspire to live up to the Code and adhere to the requirements as set out in the applicable category of engagement;
We shall demonstrate visible and active commitment to the implementation of this Code;
We shall base our Company policies on the Code and provide leadership, resources and active support for implementation of the Code;
We shall dedicate resources towards achieving the aspirations of the Code; Further, we shall ensure that the company Code of Ethics and ethical internal control and operation mechanisms serve to strengthen this Code;
Our enterprise shall ensure that subsidiaries, joint ventures, and branches over which we maintain effective control subscribe to ethical business. Where we do not have effective control we shall make known our ethical policy and use our best efforts to monitor that the conduct of such subsidiaries, joint ventures and branches is consistent with the Code;
Our business enterprise shall make known its ethics and anti-bribery policies to contractors and suppliers;
We shall make it mandatory that all known instances of corruption are reported to the relevant authorities.
This letter of commitment will be renewed annually with communication to the GCNK secretariat :
Name of company/organization Witnessed By (KAM/KEPSA): Name: Signature:
Adherence to the Code Of Ethics
A company commits to the Code of Ethics by signing this Letter of Commitment and Engagement.
Levels of Engagement: Category 1: ADHERE: In the first year following their commitment to the Code of Ethics, companies are not expected to report on their adherence to the Code, but they have to: Aspire to adhere to the Code; Make it public that they have committed to the Code of Ethics (on website, in annual report or through the annual Communication on Progress report); Participate in seminars and workshops organised by the Global Compact Network Kenya (GCNK),Kenya Association of Manufacturers (KAM), Kenya Private Sector Alliance (KEPSA) and Federation of Kenya Employers (FKE). Category 2: INTEGRATE and REPORT: From the second year after committing to the Code of Ethics, a company will publicly report on its progress with regard to the implementation of the Code. The company will also make its report available to the GCNK Secretariat. In this report, the company will indicate: How it has applied and integrated the Code within the company; Progress it has made with implementing an internal ethics and anti-corruption management programme (e.g. ethics and corruption risk assessment, top level commitment, policies and procedures, effective implementation, training, awareness, monitoring and review); Whether its report has been externally audited (which is optional). In addition, a company will: Visibly promote responsible business conduct and convince other companies to also commit to the Code of Ethics; and Participate in seminars and workshops organised by Global Compact Network Kenya. A company may immediately start adhering to the criteria under â€˜INTEGRATE and REPORTâ€™ from year 1, but will only have to start reporting from year 2.
KEPSA MEMBERS 2015
AAR Insurance Kenya Limited
Express Communications Company Limited
Actis Africa Limited
Advantage Financial S.A
AEA Limited (Avery)
Freight Forwarders Kenya Limited
Africa Practice East Africa Limited
Frontier Investment Management Limited
African Banking Corporation
Fusion Capital Limited
G4S Kenya Limited
AIG Kenya Insurance Company Limited
Gapco Kenya Limited
Airtel Kenya Networks Limited
GE East Africa Services Limited
Akiiraone One Geothermal
General Motors East Africa Limited
Aldwych Africa Development Limited
Generics Africa Limited
Apec Consortium Limited
Gertrude's Children's Hospital
Ascent Capital Advisory Services
Good Testimony Junior School Limited
Ashleys Kenya Limited
Google Kenya Limited
Avenue Healthcare Limited
Grant Thornton Consulting Limited
Bamburi Cement Limited
Haco Tiger Brands Limited
BAT Kenya Limited
Heva Fund Limited
Bidco Africa Limited
Bio Food Products Limited
Hospitality Systems Consultants
Biogas Holdings E.A. Limited,
Bollore Africa Logistics (K) Limited
Human Capital Synergies Africa Limited
Bright Vision Media Limited
IBM East Africa Limited
Brookside Dairy Limited
ikapamedia East Africa Limited
Centum Investment Company Limited
Infinity Industrial Park Limited
CFC Stanbic Bank
Interconsult Engineers Limited
Interconsumer Products Limited
International School of Advertising Limited
Coca Cola East & Central Africa
Control Risks East Africa Limited
iWay Africa Kenya Limited
Cooper-K Brands Limited
Jamii Telecommunications Limited
CPF Financial Services Limited
Jungle Group Holdings Limited
Davis & Shirtliff Limited
Deacons Kenya Limited
Kenergy Renewables Limited
Kengas Link Limited
Dow Chemical East Africa
Kenwest Cables Limited
Eagle Africa Insurance Brokers Limited
Kenya Bus Service Management Limited
East African Breweries Limited
Kenya Kazi Services Limited
East African Cables Limited
Kenya Markets Trust
Eastern Produce Kenya Limited
Kenya Power & Lighting Company Limited
Engen Kenya Limited
Kenya Tea Development Agency
English Press Limited
Kenya Toner & Ink Suppliers Limited
Eveready East Africa Limited
Kenyatta International Convention Centre
JANUARY - MARCH 2016 I PRIVATE SECTOR I 67
KEPSA MEMBERS 2015
CORPORATES CONTDâ€™ 85
Keroche Breweries Limited
Savannah Cement Limited
Kinangop Wind Park Limited
Scania East Africa Limited
Scion Real Estate Limited
Senaca East Africa Limited
Kwale International Sugar Company Limited
SGS Kenya Limited
Lantech (Africa) Limited
Simba Corporation Limited
Lee Consruction Limited
Sodexo Pass International
Liaison Group (I.B) Limited
Liquid Telecommunications Kenya Limited
Steam Plant Limited
Mabati Rolling Mills Limited
Stima Sacco Society Limited
Maersk Kenya Limited
Suraya Property Goup
Mckinsey & Company
Tata chemicals Magadi
MTN Business (Kenya) Limited
The Cooper Motor Corporation
Mwongozo East Africa Limited
The Copy Cat Limited
Nairobi Bottlers Limited
The Riara Group of Schools Limited
NIC Bank Limited
The Standard Group Limited
Oakar Services Limited
The Wrigley Company (E.A.) Limited
Octagon Pension Services Limited
Toyota Kenya Limited
Oil and Energy Services Limited
Transcend Media Group Limited
Ol Pejeta Ranching Limited
Tusker Mattresses Limited
Osho Chemical IndustriesLimited
Twiga chemical Industries Limited
Oxford University Press East Africa Limited
UAP Insurance Company Limited
Pamoja Capital Limited
Ultravetis E.A. Limited
PDM Kenya Limited
Verve K.O. Limited
Pewin Cabs Limited
Vestas Deutschland GmbH
Vivo Energy Kenya Limited
Prime Bank Limited
WildlifeDirect Kenya Limited
Procter & Gamble
Rescom Development Group Limited
Resolution Health Limited
ResponsAbility Africa Limited
Riverside Place Limited
RSM Eastern Africa
Sameer Africa Limited
SAP Africa Region (Pty) Limited
68 I PRIVATE SECTOR I JANUARY - MARCH 2016
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