Page 1 ISSUE 14 : FEBRUARY - MARCH 2012

Manufacturing Focus on SMEs

The SME Handbook Sealing Nutrition Gaps Automating Africa Waste Plastic to Household Goods The Trader, The Builder & DĂŠcor Color

GS1 Gateway FEBRUARY - MARCH 2012 ISSUE 14

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Biochemist turned Marketer The new GS1 Kenya CEO, Dick Waswa

The SME Handbook

Information, Services and Products for Small Business Owners in Kenya

Sealing Nutrition Gaps

and the importance of Moringa Oliefera, the miracle tree

Automating Africa Street plastic to Household Goods The Trader, The Builder and Décor Color Barcodes in the Pharmaceuticals Industry New Members


: Dorothy Kwamboka : Ritah Munyivah :

Gateway is published by GS1 Kenya, it’s distributed through out East Africa. Contributions are highly welcome. The editor reserves the rights to edit, amend or alter material in anyway deemed necessary. Comments and/or suggestions to be emailed to © 2012 Gateway all rights reserved, and may not be reproduced in any manner, in whole or in part at all times. GS1 Kenya Allbid House, 2nd Flr, Wing C, Opp. ASL Packaging, Mombasa Road Tel: +254 20-231 9414/238 5270, 232 1927 Cell: + 254 71 012 2252, 73 596 5168 Fax : + 254- 20 - 2353520 email:

Message from Chairman



appy New Year and welcome to this first issue of GS1 Gateway for 2012. It is always a great pleasure reaching you members through the Gateway Magazine, whose primary aim is to appraise you of the developments in supply chain across all the sectors that we represent. Also, we endeavour to facilitate a fair appreciation of the GS1 Systems & Standards to our members and this includes all the related GS1 applications. This Issue focuses on the manufacturing sector in the category of the Small and Medium Enterprises (SME). The term SME covers a wide range of definitions and measures, varying from country to country and between the sources reporting SME statistics. It is important to note that although there is no universally agreed definition of SME, some of the commonly used criteria are the number of employees, value of assets, value of sales and size of capital as well as turnover. SMEs have continued to play an important economic role in many countries. In Kenya, for instance, the sector contributes to over 65 percent of the gross domestic product. The share of SMEs in employment is equally high and typically more focused on small-scale production. We at GS1 Kenya salute the SME community for their enormous contribution to the socioeconomic activities of our country in fact, in this issue, the GS1 Gateway has profiled some of these SMEs who are turning the tide in the vast manufacturing arena. As part our strategic agenda, this year we have outlined a number of key programmes & activities which will be sector focused but importantly will also embrace the different geographies under the new County arrangement. We count on your continued support and wish to assure that we will return commensurate value to you. Indeed, it is through your valued commitment to GS1 Kenya that we have been feted both locally and internationally. I wish to take this opportunity on behalf of the Board to welcome and introduce our new Chief Executive Officer, Mr. Dick Waswa who joined us at the beginning of January 2012. He brings in a wealth of experience from the Corporate world. Along with Dick, three new staff joined us; we also welcome them on board. I wish to thank the entire staff and my colleagues in the Board for a great performance in 2011. Your contribution is highly acknowledged and appreciated for making GS1 Kenya achieve the 2011 plan. Finally, GS1 Kenya will hold this year’s Annual General Meeting (AGM) on April 26th 2012. All our members will be invited; therefore you should expect official communication via the appropriate contacts. Have a prosperous 2012!

Ken Odire Chairman, GS1 Kenya

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Exclusi veDi stri butorsi n Kenya: MAVERI CK KENYA,Vi ki ngHous e,WAI YAKIWAY,wes tl ands ,Nai robi TEL:0203522283,0770010699,0724253196,0753000960 E:I NFOPT. CO. KE

New C.E.O

GS1 Kenya recently appointed Dick Waswa as its Chief Executive Officer. A Biochemist turned Marketer, Mr. Waswa talks to Gateway Magazine about his profession and way forward as he seeks to consolidate and grow the GS1 Kenya business further.

Give us a brief background of your career My passion has always been in marketing and after my undergraduate Biochemistry course at the University of Nairobi; my sights were set on making a difference in marketing .It is no surprise that after my first job, I quickly enrolled into a business class at USIU where I graduated with an MBA. Currently, I am also a council member of the Marketing Society of Kenya (MSK). I first started off in a multinational firm known as Eli Lilly, a global pharmaceutical company, in the sales department before rising to a Specialty position very much similar to a Products Manager where I was in charge of Diabetes and Central nervous system product line.

GS1 Gateway FEBRUARY - MARCH 2012

The firm helped me learn the ropes in sales, marketing while the international exposure catapulted me into what I eventually took on as a Brand & Corporate management at Sameer Africa Limited in charge of Yana tyres.


Moving into the technical tyre industry, was like crossing between two very contrasting professions but my commitment and passion to excel drove me to apply myself very well and grow the Yana brand to a leading one, competing head to head with multinationals and internationally recognized brands. I later moved to KeNIC, the .ke domain name space registry based at the Communications Commission of Kenya (CCK) Complex for a brief stint where my appetite for ICT was greatly boosted. Part of the success there was getting Kenyan businesses online through partnerships with Google, Safaricom and Equity Bank under the kbo initiative. Some of the results of the collaborative initiative were that more than 10,000 Kenyan businesses getting .ke domains and enhancing their

visibility online, growing their market share and market presence. This in effect meant that their products and services could easily be accessible to 12 million people via the internet. When a leadership role at GS1 Kenya a rose, I felt my skill sets and experience could make a difference of consolidating and growing the business while at the helm and the rest is history. What is your focus for GS1 Kenya? My focus is to consolidate the business and grow it according to the strategic plan which gives a broad outlook and specific on deliverables. GS1 cuts across functions such as manufacturing, supply chain visibility, marketing, healthcare as well as ICT which are rapidly changing in nature. My view is to critically look at the opportunities that present in the market and craft a strategy that connects market needs and the GS1 Products and services It is important to note the company has a rich pipeline of products in bar coding; eCOMM, RFID Technology, Asset tagging whose potential in the market is immense and can touch on daily lives in many ways. Ultimately, technology will be key in the future but as custodians, my responsibility is to demystify the application of innovation so that it answers basic human problems through being customer centric. We have put in place strategies and systems that will propel GS1 Kenya to higher levels and optimize on the existing opportunities The GS1 Teams passion comprising of technically experienced staff to drive the success is critical cog in our activities going forward

GS1 Kenya appeals to all manufacturers to support our initiatives by signing in as our members so that we can leverage on our capabilities for mutual beneÄt.

Our 2012 business plan incorporates shared vision by all staff on activities that can add value in the short term and long term as per the GS1 Kenya strategic plan. A commercial acumen will be integrated in order to remain relevant both as a non profit making member organization and sustainable through commercially value added services to all our members. We are first understanding the market, market needs and looking at our overall strategic plan. The planning will take care of our strength to make sure we optimize on areas we are a force to reckon with such as barcodes. At the moment, we are yet to scratch the total barcode market hence the need to target supply chains in small medium enterprises that have little market access in formal retail outlets. The whole idea is to enhance uptake of GS1 Systems and increase both efficiency and competitiveness of every supplier to Retail outlets. GS1 responsiveness to market needs will drive this initiative. Secondly, Diversification of our revenue streams is key. Part of our mandate is to offer solutions from our rich innovation pipeline to members. A thorough understanding of the market is important so that we launch some new products in the market based on market needs. We shall leverage on existing barcode business to cross sell other products through our diversification strategy. To this end, eCOM and asset tagging projects are potentially critical line based on the current growth in the ICT sector. GS1 Kenya is in the process of forging linkages with donors to support capacity building of SMEs who have sustainability issues arising from poor market access, competitiveness and capacity to penetrate regional and international markets. We have also set our focus on projects such as asset tagging and other consultancy that have an immediate benefit tot the organizations through giving members and non members a value add to their internal Control systems. Lastly, we recognize that at every stage, capacity building of GS1 Kenya staff through international exposure and performance management is critical in order to spearhead the innovation process and competitiveness in market. Message to the members GS1 Kenya is changing the approach and shall be very responsive to members’ needs through meeting them at the points where it matters most. We shall have customized solutions since our members exhibit differences in their operations even if they belong to same business category.

As part of our member activities, we plan to be more customers centric and connect with our members to understand their challenges and pursue activities with them through long-term beneficial solutions that would ultimately grow their business through use of GS1 Systems. What new products are in the pipeline? Firstly, any new innovation will go through a strict new product development cycle to have a clear market need, research, a justification, and clear launch objective, feasibility study and measurable impact in order to be fast tracked on to the market. The financial viability is of utmost importance in order to be in tandem with GS1 mandate of being a member organization and creating real value to their membership. We are looking at eCOM as a new product with pilot case and eventually roll out before close of the year. How do you plan to engage retailers to achieve maximum use of barcodes? We have planned to have Regional Retail engagement forums with all retailers in selected regions as a way of capturing all our members. Secondly, all retailers will be an important clog of our business hence their support as far as making sure all their suppliers have a mandatory verification certificate from GS1 annually is done. We plan to collaborate at strategic level as partners in the supply chain efficiency and visibility. What message do you have for the manufacturers noting that products need to be bar-coded before they are displayed at the retail end? Manufacturers in Kenya and the region are battling with high costs of doing business arising from power costs, energy and electricity, labor costs, high distribution costs and poor infrastructure to markets. The situation is worsened every day by high risks occasioned by political activities, exchange rate fluctuations and rising competition from other global producers in the Far East that have low production cots and economies of scale. What GS1 Kenya would like to do is enhance their market access and grow their market share through globally accepted systems .GS1 Kenya hopes to forge partnerships through the Kenya Association of Members (KAM), Kenya Private sector Alliance (KEPSA) and standards bodies such as the Kenya Bureau of Standards (KEBS) and other regional bodies to make this a reality. Finally, GS1 Kenya appeals to all manufacturers to support our initiatives by signing in as our members so that we can leverage on our capabilities for mutual benefit. Thank you.

GS1 Gateway FEBRUARY - MARCH 2012

How do you plan to achieve the above?


SME Information

The SME Handbook Information, Services and Products for Small Business Owners in Kenya From Left, Richard Muteti, Director, SMES, East Africa, Hon. Amb. Chirau Ali Mwakwere, Minister for Trade, Eng. Patrick Obath, Chairman, KEPSA and Patrick Mwangi, Aquarius Media (Publisher) during the launch of The SME Handbook.

Information is power. Most small medium enterprises (SMEs) are said to have plunged and continue plunging into businesses without conducting any research. Statistics indicate that many are the entrepreneurs who go into business because they have seen their friends and relatives manage and succeed in business thus would also want to try their hand in the same.


GS1 Gateway FEBRUARY - MARCH 2012

ven though research on how to start a business, write an effective business plan, acquire financing as well as knowing the regulatory agencies that one’s business falls under can be easily found, some entrepreneurs blindly ignore conducting a thorough research and to equip themselves with information that can help them run successful enterprises. It is this lack of information that forms one of the reasons why a large chunk of SMEs never live past their fifth birthday.


To equip SMEs with the relevant information including that of products and services that a business may from time to time require, The SME Handbook comes in handy. “The SME Handbook makes it easier for an entrepreneur to refer to, it is more than a directory,” explains Lydiah Njoroge, Programmes Director, Small and Medium Enterprise Support, East Africa (SMES, East Africa). The SME Handbook, collaboration between the Government, the private sector and SMES, East Africa is a concept born out of the realization that SMEs experience enormous information gaps.

Organizations such as East African Business Council, Kenya Private Sector Alliance, Kenya National Chamber of Commerce and Industry, Micro and Small Enterprises Federation (MSEF), Kenya National Alliance of Street Vendors and Informal Traders (KENASVIT), Kamukunji Jua Kali Youth Initiative (KAJUYI)) GS1 Kenya and Metropol East Africa that have been featured in the Book, giving their profiles and how an entrepreneur can benefit from them. “The book is tailored to entrepreneurs in business in need of ‘business beacons’ such as, how to get into business or how to come up with a good business plan,” Ms. Njoroge adds. The SME Handbook has information on how businesses can patent their products, get barcodes for their products to access the retail market or how to improve on their products, re-investing in the business as well as training and many other issues. Contrary to various perceptions that link the Government to not doing much to help SMEs, the SME Handbook gives the various programs and services that businesses can

take advantage of. “The Book simplifies the various services offered by Government Ministries, Agencies and Parastatals, enabling SMEs to know where to get the services they need at whatever point,” she adds. Referral Agency Naturally, those in the informal sector have no idea where and how to acquire some services while at the same time, the main stream media might not give all the required details. SMES, East Africa has continued to stand out as a one stop shop for all the business information that entrepreneurs need. Ms. Njoroge notes that they bridge the information gap between service providers and those in the informal sector. SMES, East Africa acts as a catalyst between SMEs and service providers. The company works with SME Associations, Microfinance institutions as well as other business associations such as East Africa Business Association and Kenya Private Sector Alliance and has also established contact in the various Government agencies. “It is here that we help them get the right service provider,” she

Noting Kenya’s vision to become a middle income economy by 2030 with 84% of the new jobs coming from SMEs, Ms. Njoroge says there is need to turn more attention to this vibrant sector by ensuring that there are proper structures in place to catapult the SME sector to greater heights. This, she points notwithstanding that the Government through the Assistance to Micro-Enterprise Program(ASMEP), in the Ministry of Trade has opened more business information centers for use by SMEs. “The Government has fast realized that people know what they want to do but how to get things done is the problem thus the need for business centers,” she adds. Other ‘structures’ worth lauding include the introduction of Women and Youth Funds which have given various groups access to funds and in a way reducing hindrance to capital which remains a key challenge in businesses.

Other efforts from the Government include construction of business sheds countrywide, capacity building which can be offered free or subsidized by various agencies as well as incubation centers which help SMEs acquire ‘wings to fly’ and take their businesses to a higher level. “Most of this information is available in The SME Handbook,” she adds. Other than the ongoing and planned infrastructure developments which form part of the plan to transform the country into a middle income economy, Ms. Njoroge urges the Government to loosen some of the bureaucratic processes that SMEs are forced to undergo in acquiring the necessary business licenses. At the same time, there is need to fine tune the East African Community to make it easier for entrepreneurs to do business within the region. At the same time, the Government should give entrepreneurs a voice when it comes to policy formulation “It is high time entrepreneurship is made part of the national lingo,” she notes.

Other Services SMES, East Africa is working on availing The SME Handbook online. The Book is also be available in the County offices of various government ministries dealing with SMEs; the Ministry of Trade, Ministry of Labour, Ministry of Industrialization, Ministry of State for Planning, National Development and Vision 2030 and SMES, East Africa seek to increase its usage. SMES, East Africa is currently negotiating with financial institutions for LPO financing for small business owners. We are also introducing a SMEs Partnership Card; the card will enable small business owners access subsidized fees on various products and services Service providers will also be able to inform and update small business owners on their services and products through Platforms organized by SMES, East Africa

GS1 Gateway FEBRUARY - MARCH 2012

explains. Though The SME Handbook can be used by anyone who is already in business, Ms. Njoroge is quick to point out that SMES, East Africa focuses on growth oriented SMEs; these are SMEs looking to expand and grow.


Quality Control

Verification QUALITY CONTROL FOR BAR CODES Verification measures the printed quality of the bar code to international standards. It is the standard used by retailers worldwide. Verification is mandatory for all companies either designing or printing their own bar codes, ensuring that an acceptable image is created. GS1 Kenya offers verification as a value addition service to members with an aim of bringing the quality of printed barcodes in Kenya to world class standards.

A poorly printed barcode is worse than no bar code at all. Bar code quality is vital. Every time a bar code fails to scan, costs are incurred. At best the data is required to be input manually whilst at worst deliveries are rejected. An ever increasing number of major retailers are now taking a very different approach of ensuring the integrity of data by having quality barcodes. Goods are returned and fines imposed for non scanning codes. For repeat offenders the ultimate sanction can be, and has been, delisting the supplier.

As part of an effective QA system it can help you win business. Are your competitors using verification? Are they questioning the quality of your bar codes with your customers? Is it affecting your business? Additional benefits accrue to the symbol producer, who is able to make use of the measurement information on the symbols he is producing to monitor his production process and adjust his equipment or procedures in order to correct any deviations from his optimum quality. Package designers can use feedback from verification to make sure that symbol size, position and color will not result in point-of-use difficulties. The receiver of bar coded products will also gain from verification of incoming bar codes; in assessing the likelihood of them causing scanning problems, handling and inventory control systems, or at the point of use. In summary, the process of verification provides: • More efficient supply chain • Better quality bar codes improving scan rates • Correct bar codes and therefore correct data in systems • One test and bar code solution for all manufacturers giving confidence to retailers and other Users

• Faster product to market • Errors corrected at art work stage, prevents printing of wrong bar code • No penalties, blacklists or product delisting from retailers • Improved customer relationships • No need to reprint the barcode that would lead to product recall, loss of packaging material, re-printing costs, poor speed to market • Reassurance and confidence that the bar code will perform as intended at all stages of the product passage down the supply chain • Reassurance that the bar code will scan in almost all scanning environments independently of the scanner type • One barcode testing standard accepted globally • Scannable bar codes facilitate accurate, real time stock management • No loss of sales due to poor scanning and consequent loss of sales data • Correct information for eCom processes resulting in more accurate orders, deliveries and invoices • As bar code scan rates improve, data does not have to be manually entered which could lead to delays, errors, customer queue build-ups, man hours lost and money wasted • Fast and accurate data capture at every point of the supply chain, including goods receiving, warehousing, picking, dispatch and point-of-sale information

GS1 Gateway FEBRUARY - MARCH 2012



At its most basic level, verification is an insurance policy which assures you that your bar code will scan first time at all levels in the supply chain, thus enhancing supplier/ customer relationship. The biggest benefit for verification is, simply, reassurance and confidence that the bar code will perform the intended at all stages of the product's passage down the supply chain, leading to untroubled supplier-customer relationships and excellent operational efficiency.

At all times, manufacturers and retailers should insist on verification. Members M / manufacturers who verify their barcodes b will be reassured that their barcodes will w scan first time, all the time , ensuring c customers’ satisfaction. C Contact GS1 Kenya to have your barcodes vverified or

SME Manufacturing

Sealing nutrition gaps

and the importance of Moringa Oliefera, the miracle tree


ifestyle related diseases are said to be among the highest cause of human death today. According to various reports, globally, 60 percent of deaths are caused by the lifestyle diseases, translating to about 36 million deaths. Out of these, a whopping 80 percent are in Africa. The advent of lifestyle diseases is blamed on four main issues including economic transition, rapid urbanization, unhealthy diets, lack of physical exercise and modern lifestyle associated with excess use of tobacco and alcohol.

GS1 Gateway FEBRUARY - MARCH 2012

As more people the world over realize the raging effects of these lifestyle diseases, the need to be keen on what one eats and drinks while at the same time engaging in healthier habits such as physical exercise and turning into organic foods have continued to gain popularity.


This aside, thanks to the modern lifestyle that most people have subjected themselves into, knowledge gaps in nutrition matters continue emerging. According to Christine Mwangi, Director, Fotren Africa Limited, people are releasing what is of value to get what is of less value. “We are seeing situations where people convert harvested nutritional foods from their farms into money only to purchase less nutritional foods instead of utilizing the food they harvested commercially and nutritionally for double benefits,” she laments. Other than the wider food security issues that Kenya grapples with, Ms. Mwangi notes that most Kenyans are misinformed about nutritional issues; catapulting lifestyle diseases and even lack of enough food in the granaries. “It is for the above reasons that Fotren Africa Limited was formed three years ago,” explains Ms. Mwangi, a food scientist

cum researcher who co-owns the company with two other directors, all of whom are in a related profession. Fotren Africa interacts with local communities to bridge the nutrition gaps existing among the communities. The company is concerned with nutritional consultancy services, food technology and food- based clinical trials. It generates and dispenses nutrition information to empower the communities based on research conducted. The company also acts as a link for communities to market their produce. Fotren Africa also trains on food production and technology, trains trainers of trainers as it seeks to promote good health and nutrition. Here issues such as food preservation among various communities are advised and trained on. Apart from the training, the company has incorporated a processing arm for the production of Moringa Oleifera. “At the same time, our consultancy arm helps with nutrition issues among people; it is here that some of these lifestyle diseases such as obesity can be worked on,” Ms. Mwangi explains. The Miracle Tree From India, Australia, South America to Africa, the edible Moringa Oliefera tree continues to gain foothold as a healthy food source. Various medical studies have revealed that Moringa Oleifera, which grows in tropical areas, has nutritional, therapeutic and prophylactic benefits to a human being. According to Trees for Life Journal published by John Hopkins School of Medicine, every part of this tree is edible thereby giving medicinal and health values. It is against this background that Fotren Africa Limited is into the production of Moringa Oleifera Health powder. The company processes and packs the product from

Moringa’s leaves. “Our product is purely organic; it is grown with no conventional fertilizer with an aim of achieving medicinal and nutritional benefits,” Ms. Mwangi explains. During the dry seasons, the trees can be irrigated. At the same time, as the burden of disease continues to drive people to down whatever it takes for them to stay healthy, organic farming has taken root to avoid further chemical residue transfer into people’s bodies. Fotren Africa has sub-contracted farmers who grow Moringa Oliefera on their behalf. The company works with 40 farmers, some who are into large scale farming of Moringa, within the Mount Kenya region and Upper Meru; Chogoria, Chuka and Mbeere. “The farmers are trained on the specific instructions of germination and crop husbandry. We supply them with seeds, train them on harvesting and post harvest handling.” she further explains. The farmers are expected to hand over their produce to Fotren Africa for processing to achieve the desired fine Moringa Oliefera powder which is packed and sold in the leading retail outlets. “Above all, Fotren Africa’s intention is to change the economical status of local farmers,” Ms. Mwangi adds

From India, Australia, South America to Africa, the edible Moringa Oliefera continues to gain foothold as a healthy food source

Even though the harvesting of Moringa Oliefera leaves is seasonal, demand for the product surpasses supply. Various food manufacturers have continued to realize the need to produce food with natural ingredients such as Moringa Oleifera. This again is because consumers are going for fortified foods which boost immunity while at the same time preventing diseases. The benefits of Moringa Oliefera are plenty. The tree is said to be a detoxifier, a water purifier while at the same time providing a rich array of necessary Vitamins, proteins and minerals that deliver nutrients without unhealthy fats or high calorie carbohydrates, according to the John Hopkins School of Medicine publication. Ms. Mwangi advises that the Moringa Oliefera powder that Fotren Africa produces should not be cooked but sprinkled on food. “Cooking will suppress the nutrients. The product is a perfect addition to porridge, soup or even cereals,” she explains. The company which started processing and packaging Moringa Oliefera from her house has now invested in a middle sized factory located in Nairobi’s Kahawa Sukari zone. A total of 2,000 bottles each of 100 grams are produced every month. Even with the small scale production, Ms. Mwangi notes that the demand for the product remains enormous. “We are able to sell almost 100 percent of our produce through informal networks,” she adds. Generally, the demand for the use of Moringa is mostly satisfied through this channel as Ms. Mwangi notes that proper awareness and acceptance of the benefits of Moringa Oliefera are yet to be known formally. It is this reason that Fotren Africa recently diversified its market and hit the retail shelves of some of the larger supermarkets. “To further achieve this, we saw the need to get a barcode for our product,” Ms. Mwangi says. The product can be found at Health ‘U’ shops as well as Naivas Supermarkets. Soon, consumers will be able to access the same products at Uchumi and Tuskys Supermarkets. However the constant supply of Moringa Oliefera is challenged by the fact that there are fewer farmers able to supply the raw material. Lack of awareness on the benefits of Moringa Oliefera has led to the low penetration in the formal market. At the same time, capital remains a challenge. “We want to recruit more farmers to address demand issues however our ambition of producing 10,000 tonnes of the product as well as changing our packaging need to be highly supported by investing in a larger warehouse,” she explains. Business challenges aside, Fotren Africa is looking beyond Kenya from a retail perspective. The company has set its eyes on South Sudan, Mauritius, Zambia, United Kingdom, the US and Canada. “Our informal channels are driving this; our friends based in these countries are helping us market the product to reach out to more clients,” she reveals.

“Fotren Africa is also hoping to partner with Cancer institutions to increase awareness and consumption of Moringa Oleifera,” Studies have shown the tree has anti-tumor properties. A chemical and its compound known as benzyl isothiocyanate derived thereof have anti-cancer and chemo protective capabilities critical for those battling cancer as it helps strengthen cells so that they can tolerate chemotherapy. Extensive medical studies have also revealed Moringa Oliefera properties that prevent cancer. “In a nut shell, Moringa Oliefera health powder, when consumed on a regular basis achieves excellent therapeutic milestones in the management of chronic illnesses including diabetes and hypertension”, she adds.

GS1 Gateway FEBRUARY - MARCH 2012

The company is looking at changing the packaging to suit both local and international markets. The pharmaceutical market is also another opportunity which Ms. Mwangi says the company is eyeing through product diversification.



Automating Africa


one are the days when businesses operated what can now be termed as ‘traditional’. This included hand-written receipts coupled with a variety of manual processes in areas such as balancing of books at the end of each business day and stock-taking, thereby reducing the chances of making profits. Thanks to automation of business processes, large and small companies are able to realize results effectively and efficiently.

GS1 Gateway FEBRUARY - MARCH 2012

One of the ways that businesses have been able to manage their day to day operations is by investing in the required systems. Other than the Electronic Tax Registers (ETRs) machines which are a requirement for businesses by the Kenya Revenue Authority (KRA), entrepreneurs have also seen the need of embracing and investing in automated point of sale (POS) solutions. Today, POS solutions can be found in restaurants, retail businesses such as supermarkets, pharmacies, cosmetic shops as well as in hospitals as entrepreneurs endeavour to keep track of inventories, manage and view sales reports, purchases and customers.


One of the companies approved by KRA to provide fiscal solutions as well as POS solutions in Kenya is Pergamon Group Limited. Comprised of a young and energetic team, the company was established with the main aim of providing affordable solutions to modern-day businesses through high quality hardware for office automation and concretes of for the micromanagement of small and large enterprises. Pergamon Tanzania is approved by the Tanzania Revenue Authority as well as the Rwanda Revenue Authority (RRA) as the supplier of fiscal machines in the two countries. “We are a complete IT solutions company with presence in Kenya, Tanzania,

Uganda, Rwanda and Malawi,” explains Caren Chepkemoi, the Operations Manager, Pergamon Group Limited. In the Kenyan market, Pergamon Limited has continued to pride itself as one of the top ranking companies with the highest number of devices licensed by KRA. In Tanzania, the company’s main aim is to enhance the use of fiscal tax machines as well as assist the Government in deploying and educating the public on their importance. “Our Tanzanian market share stands at 41 percent. We are seeking to reinforce our presence in Rwanda having been one of the two companies that was approved RRA,” Ms. Chepkemoi says. She notes that the company’s growth in Kenya lies in the fact that businesses have fast realized the need to automate their business processes to seal loopholes likely to cause losses. “We experience a balance between retail and restaurant solutions; especially in the POS,” she adds. Customer focus Ms. Chepkemoi notes that as the competitive landscape continues to evolve, more and more businesses require ready to use cost-effective software solutions that enhance their business processes while at the same time reducing their operational costs. “The solutions may also be customized for the special needs of a particular business enterprise,” she adds. To meet the demands of its clients, Pergamon has a wide range of quality products mainly sourced from Europe as well as services. The company holds the exclusive rights from Bulgaria's leading Manufacturer of electronic devices–Incotex Group, as its sole distributor in Africa. Other key partners that the company associates itself with include Ingenico – France (payment terminals) and Microinvest – Bulgaria (POS software). Pergamon’s services are structured to support its client base and enhance their satisfaction.

With specific and targeted expertise, the Group service team has the capability of bringing specific expertise to a client’s implementation plans. Other than training and the simplified manuals to help customers feel at ease with the various solutions, the company offers free demos and installations of ETRs and POS Software, repair of machines within the warranty period, free registration of PIN for new companies and 24-hour online/ phone support. Apart from the fiscal solutions for businesses as well as retail and restaurant systems, the company offers installation, integration and maintenance of computers, networking products and their related products, bank system study and design and customer loyalty programs. Others are POS software development and integration, microfinance systems, leasing of all ICT equipment and consulting for bank on any payment solutions strategy, EMV certification, security- Visa and MasterCard standards. Diversify The company is in the process of introducing a new line of products as Ms. Chepkemoi reveals. Top on its list is diversifying into light-emitting diode (LED) lighting. LED is a semi-conductor light source mainly used as indicator lamps in many devices and are increasingly used for other lighting. “Europe is phasing out the normal lighting and turning into LED which is considered green-energy,” she adds. Though costly, LED can be used in décor, industrial, street and domestic lighting. On the flip side, a user is able to save up to 80 percent of the cost of power and is assured of a five year warranty of the bulbs. Pergamon Group Limited is eyeing to have business presence in South Sudan, Zambia and Angola in the near future. “We are also looking into West Africa,” Ms. Chepkemoi adds.

SME - Manufacturing

Left: Sunil Dodhia, Founder, Halar Industries Limited and Sagar Shah, one of the company's Directors.

Street plastic waste to household goods


he demand for plastic household goods is one that cannot be underestimated. Even in the absence of specific figures on the usage of plastic household goods and contribution to the economy, it is evident that most homes, schools and offices cannot live without these goods. Plastic items are used in packaging, storage, holding, washing and laundry…the list is endless.

GS1 Gateway FEBRUARY - MARCH 2012

Apart from kitchen utensils which are likely to be among the top most used item under plastics, the manufacturing of these items has evolved with industry players churning baby, industrial, furniture and specialty plastic goods.


One of the areas that demand continues to soar is in the area of plastic furniture; mainly chairs and tables. Hardly a day passes without the use of the plastic furniture. Social gatherings such as weddings, funeral and wedding meetings, office meetings and any other events will most likely require such furniture. Event organizers term them as safe, easy to carry out and affordable to buy or even hire out. Halar Industries Limited is one such company that continues to quench the demand for plastic products not only among Kenyans but also in the region. Even though the company is among the top plastic items manufacturing company

in Kenya, its uniqueness lies in the fact that their raw material is street plastic waste. “Unlike our competitors who rely on imported raw material, Halar Industries is able to manufacture a range of 170 quality and affordable products from plastic waste,” explains Sunil Dodhia, the founder of Halar Industries Limited. Each day the company recycles 50 tonnes of plastic waste collected from Nairobi and its environs. Mr. Dodhia says the company has contracted collectors who deliver the plastic waste which is later sorted, graded and cleaned before embarking on the more comprehensive processes of moulding into finished goods. “We have invested in machinery able to shred the plastic into pieces and clean them completely before further use,” he adds. Halar Industries boasts of having the largest range of washing basins. The company has also diversified into multicolored products which have for long been imported mostly from China. These goods are mainly characterized by a mix of colors unlike the ordinary singlecolor plastic items that most people are accustomed to. The family business was founded in 2004 with a view to help environment by doing such activity. The company currently

produces up to 400 tonnes of finished goods every month destined for Kenya, Uganda, Tanzania, Burundi, Rwanda, Sudan and Congo. A further range of domestic ware that Halar Industries manufactures includes various sizes and shapes of buckets, mugs, water jugs, plates, cups, vacuum flasks, chairs, tables and feeding bottles. Halar Industries is also home to various sizes and shapes of plastic containers which can be used for ice cream, dairy products, cooking fat, and cooking oils as well as bottle crates, bread crates, milk crates, various types of crates for agriculture and horticulture industry. Others are storage buckets, storage bins, waste bins and waste paper baskets, plastic furniture mainly chairs. –chairs and stools.

Mr. Dodhia says the company has contracted collectors who deliver the plastic waste which is later sorted, graded and cleaned before embarking on the more comprehensive processes of moulding into Änished goods.

Eco-friendly Selling its wares through wholesalers as well the medium and large retail shops, Halar Industries has been able to capture the market locally and regionally selling up to 70 percent of its products in Kenya which translates to 35 percent market share. The remaining is sold in the neighboring countries. The multi-colored products have been picking up as they also considered durable compared to the imported ones. “Apart from recycling, Halar Industries has invested in the latest technology that is required to manufacture these multicolored products,” he explains. As one of the largest recycler of plastic waste in the region, Mr. Dodhia is proud that Halar Industries provides employment for up to 250 and 1,000 people directly and indirectly respectively. “We buy the waste per kilo but based on demand,” he says. The plastic waste collectors are also trained on the required plastic by the factory as well as how to grade and grind. “If only the Government policies on recycled plastic waste were spelt out better, then more people could benefit from the company,” he laments. According to him, the Government ought to implement policies aimed at encourage recycling which in turn will ensure that such manufacturers source for their materials wholly locally as opposed to importing. While calling on larger factories and individuals dealing with collection of recycled plastics to work with the company, Mr. Dodhia notes that the demand for such waste remains enormous at Halar Industries. The company has the capacity to receive more than 300 tonnes every month compared to the 50 tonnes currently. With the kind of machinery that it has invested in, Mr. Dodhia adds that Halar Industries has a maximum capacity of producing 1000 tonnes of finished products compared to the 400 tonnes is does every month. The informal process of collecting the raw material remains a hindrance to its full production. Even though such plastic is regarded as waste, the collectors report of being harassed by the related authorities. On the other hand, the process of sorting waste can be extremely strenuous. The company has trained thousands of people by teaching the process of recycling to its employees and collectors. “This is again the reason why Government policy is vital which would guide everyone on how to sort their waste thereby giving collectors an ‘easier’ time,” Mr. Dodhia says.

Nevertheless, Mr. Dodhia notes that thanks to the company’s sophisticated technology, Halar Industries has been increasing its annual capacity by up to 50 tonnes. Only recently, the business has witnessed a slump in its production further forcing it to cut down on its workforce who normally operates for 24 hours in shifts. Even though business is not all so rosy, Halar Industries Limited continues to pride itself as the manufacturer of quality and affordable products while at the same time contributing significantly to saving the world from some the environmental dangers.

GS1 Gateway FEBRUARY - MARCH 2012

That aside, the company continues to grapple with the high cost of production as well as the never ending uncertainty of the foreign exchange currency.



1. Charles Thuku and Jeremiah Muriuki, GS1 Kenya Directors with some GS1 Kenya staff during the end year party 2. GS1 Kenya staff pose for a photo during the end year cocktail party 3. Members enjoy their drinks and bites during the end year cocktail party


4. The Minister for Trade Hon. Amb. Chirau A. Mwakwere launches the SME Handbook, accompanied by Richard Muteti, Director SMES, East Africa 5. Munene Nyaga of EASY FM shares a word with members during the end cocktail party 6. GS1 Kenya Staff posing for a photo during the end year cocktail party 7. Chris Bichage and Prof. Michael Okoth GS1 Kenya directors share a word with Charles Kalomba of Jua Kali Association


8. Elijah Kirui and Dorothy Kwamboka awarded for 10 years of service. Looking on John Sawers Director, Titus Korir Finance & Admin. and Ken Odire Chairman GS1 Kenya 9. Chris Bichage, GS1 Kenya Director and Nancy Mbiyu of UAP Insurance during the end year cocktail party







About Us Kenya Association of Manufacturers was constituted in 1959 as a non-profit making, apolitical private sector organisation that is registered in Kenya as a company limited by guarantee. We aim at creating and sustaining a conducive environment in which manufacturers and indeed the business community as a whole can conduct their operations competitively IRUWKHEHQHĂ&#x20AC;WRIDOO:HGRWKLVE\ promoting and protecting the interest of manufacturers as well as encouraging discussions among members on all issues that have a direct impact on them.

Our Services

Representation to government Regulators Research Policy advocacy Information

KAM exists with the aim of uniting industrialists and offering a common voice to manufacturers and any other Ă&#x20AC;UPVWKDWDUHHQJDJHGLQYDOXHDGdition. We do so by providing a link for cooperation, dialogue and understanding between our members and the Government, promotion of trade and investment, upholding standards, and developing industrial potential in Kenya.

Fee based services Energy Services Work permits processing AGOA Visa processing TREO Processing Seminars and workshops

NB: Some of our fee based services exculsively accessible to our members while others are more expensive for non-members.

GS1 Gateway NOV 2011 - JAN 2012

Contact us P.O. Box 30225 - 00100 GPO, Nairobi +254 20 3744886 | 3741634 | 3746005/7 | 3746021/22 +254 20 3746028/30 | +254 0722_ 2IĂ&#x20AC;FH

@; Location: Opposite Nakumatt Westgate, along Mwanzi Road, Westlands


Want to become a member? industrytoday


Congratulations to all Workshops/ Trainings Attendants!


ver wondered why some barcodes do not scan while others scan right the first time at the point of sale? Have you ever wondered the right size of the barcode and what to consider when printing it? Ever wanted to extend your creativity on the colour of the barcode and ended up choosing wrong colours that do not scan? Do you know the right places to position your barcodes and how to manage the codes within your company?

GS1 Kenya would like to CONGRATULATE the following members who took part during the Workshop/training held during the months of January / February 2012. We are very proud of you because we know that you will effect the much needed change in the entire retail market because of the knowledge that you now possess. KUDOS!! Name of Attendant Highport Merchants Caretex Kenya Trenz (K) Ltd Mimi Beauty Care Trenz (K) Ltd Bethany's Shower

February Abdikarim Dahir Aidah W. Rutui Bernadette Ndungu Beth Njoroge Boniface Mburu Mwaura Boniface Ngumbau Caroline Njeri Carolyne Edagwa Chris Ngaruiya Christiano Oduol Christine Wangui Clement Mwangi David Kimathi Dominic G. Kiarie Dorothy Kanorio Mugane Eunice Wangui Frankline Makokha Geoffrey Watho George Kungu George Muya Grace Kariuki J. O Ambogo Jayne Mutahi John Ndegwa

Marinda Industries Ltd Afya Delight Foods Zeline Enterprises Brayor Suppliers Freshsprings Enterprises Abadin Limited Crystal Cool Jabali Ventures Limited Yellow Rork Farm St. Pauls Children Care Centre Shanco Health Products Sensations Limited Martin Wax Joy Fresh Produce Fotren Africa Limited Aggies Distributors Mc Zak Consultants Gimel Investments Sensations Limited Aggies Distributors 360 Enterprises Ltd Lorena Enterprises St. Pauls Children Care Centre The Massive Group

Johnsannic Kariuki Jonathan K. Koskei Jones Muchiri Joseph Kimeu Josephine Githinji Josphat Kiprono Kenneth Mutuma Maina W. Karani Maulik Vyas Michael Mwangi Namuel Kariuki Noel Gichure Patrick Kinyua Patrick Rotich Pauline Wambui Peter Ngugi Peter Ochieng Philips Ochieng Prashit Shah Prisca Wanja Rakhee Chandaria Robert Amira Ruth Kinyua S.A.M.A. Shallo Samuel Ikiara Simon Ndungu Teddy Nyale Thomas Nzuku Victor Mukele Weston Githaiga Zachary Mundia

Kilimanjaro Steelwool Chesoton Dairy Jones Meal Licks Lyntech Chemicals Jowagi Enterprises Mesero Premuim Limited Crystal Cool June Springs Co. Rocom Enterprises Crystal Cool Capeec Poultry Nozak General Agency Beullah Agipat Kaso Neema Pamco Foods Distributions Kilifi Flour Millers South South Limited Dikuj Agencies Paperbags Limited Kilimanjaro Steelwool Paperbags Limited Morven Kester (EA) Ltd Beullah Agipat Marinda Industries Ltd Martin Wax Heena Promotions Phil Edwards Lyntech Chemicals McZak Consulting 360 Enterprises Ltd Brak Associates (E.A.) Ltd

GS1 S1 G Ga Gateway atew teway ay y XXX XXXX - XXXXX XX XXXX XX 20 2 2012 1 12

Company's Name January Alex Ndung'u Kamau Ann Mwangi Charles Ondeko Leon Seal Nimmy Raphi Yvonne Wanjiru



Peter Otieno, Group Chairman and Chief Executive, Walls & Floors Holdings Limited

The Trader, The Builder and Décor Color


t is projected that Kenya will have a population of over 60 million people by the year 2030 and more than 50 percent of them will be living in urban areas, creating a huge demand for new housing.

GS1 Gateway FEBRUARY - MARCH 2012

Kenya's capital, Nairobi, has the country's biggest share of real estate developments. Even though real estate analysts have started predicting a slump in property prices, the last couple of years have been a boom time for developers in the city. From the exclusive neighborhoods in areas such as Karen, Lavington, Kileleshwa, Kitisuru, Runda, Thigiri Ridge, and Ridgeways to the more populated areas in Nairobi’s Eastlands, modern houses, high rise buildings and apartments are being developed and occupied even though the demand for better housing supported by good infrastructure is far from being a dream.


The deepening of the sector has continued to economically boost and also give birth to new entrepreneurs such as real estate consultants, contractors and developers as well as hardware shops and other distributors of building and construction materials. One such entrepreneur is Peter Otieno, the Group Chairman and Chief Executive of Walls & Floors Holdings Limited, a family business which has grown significantly from a minor ceramic tiles’ repairs company to a renowned entity currently operating three different subsidiaries; The Trader, the flagship subsidiary dealing with importing and supply of various house finishings, The Builder, a relatively new company which deals with the rather new prefabrication technology and Décor Colors which deals

with importing and supplying of special protective coats.

our clients with the best and unique house finishings,” he explains.

Mr. Otieno, a food engineer by profession quit his career after working with various multinational companies in the food production and cosmetics’ sub-sector to set up Walls & Floors in 2004. “Entrepreneurship is not for the faint hearted, after quitting formal employment, I tried my hand in running a cosmetics business but later turned into the building and construction sub-sector,” he reveals. Walls & Floors was among the first indigenous businesses to import ceramic tiles, an arena that was for sometime a preserve of the Asian businessmen and mainly those from India.

Prefabricated Houses Less than a year ago, Walls & Floors’The Builder entered into the building and construction sub-sector by targeting potential home owners interested in the pre-fabricated technology. “Prefabricated (Prefabs) houses are specialist dwelling types of prefabricated building, which are manufactured off-site in advance, usually in standard sections that can be easily shipped and assembled,” Mr. Otieno explains. Materials used in these houses include steel structural insulated panels, wooden panels, cement fibre panels or reinforced concrete panel.

As more Kenyans got eager to own and live in their dream houses as some investors put up apartments and other commercial houses for rental, the huge demand for ceramic tiles became an unrivalled business as Mr. Otieno recalls. Walls & Floors started off by importing and supplying various types of ceramic tiles to hardware shops as well as more established shops such the popular Tiles and Carpets Centre. The company’s association with renowned international sourcing agents where the materials can easily be accessed and purchased has leveraged the company to stay afloat giving it a unique business edge. Walls & Floors boasts of its business associations with MATRADE, a Malaysian Trade Promotion Agency, Hong Kong Trade Development Council (HKTDC) and the Chinese Canton Fair. The Canton Fair is the largest biannual China trade fair held in Guangzhou, China. “These associations enable us to access information on the various products and where to source them as we seek to supply

Prefabricated homes have become popular in Europe, Canada and United States as they are relatively cheap compared to the many existing homes in the market however, the technology taunted as the solution to the housing crisis is yet to gain popularity in Kenya. Mr. Otieno notes that the construction of such a house whose life span is between 30 to 50 years takes half the time that an ordinary stone house takes to complete. Secondly, the cost of construction is said to be half that of the stone house. Kenyans’ lack of appreciation for and understanding the technology is one of the hindrances to the development of the technology. There is a general perception that stone walls give people security unlike the prefabs whose walls are made of fibre glass and steel. “Then there is the By-Laws which could pass prefabrication houses as semi-permanent,” he adds.

All is not lost as the technology’s popularity is set to gain as the Government through the National Housing Corporation in the process of constructing a factory dealing with the manufacturing of prefabricated materials. This will allow for affordable sourcing of materials. There are three types of prefabricated house designs. A potential home owner can decide to go for the Container type, Standard panel structure or light steel Villa. according to one’s taste. Standard prefabs are the best designs for schools and hospitals. The Builder is already working with a client from Europe based in South Sudan to come up with a prefab house. Locally, the company is working with the County Council of Olekajuado, one of the richest Counties in Kenya on a prefabricated residential estate which Mr. Otieno notes will be a big breakthrough to the company as well as the wide use of the technology. “We are likely to see the penetration of the technology via Counties in the next five or so years once the project is up and running,” he says.

Mr. Otieno notes that such are the business challenges that have led to the opening of Walls & Floors, Décor Colors, which is still at its inception stages. The subsidiary deals with the importation and supply of special high end protective coats sourced from Turkey. He notes that even though the products have their target market, the company is hoping to invest in its own manufacturing plant as it seeks to drastically reduce the costs of acquiring such products whose raw materials are locally available.

Lastly, Walls & Floors has also gone into the importation of a special cleaning rug targeting the food industry. Through its association with an American company known as Dupont, Walls & Floors is the appointed regional distributor of the special rug which is also being used in the airline industry for wiping engines and plane windows, as well as in printing; wiping printing plates. Some of the companies enjoying the benefit of this special rug include Tetra Pak Eastern Africa and De La Rue.

The special protective coats are in paste form and easily mix with water. The application process is also easy as they take between 2

Some of the companies enjoying the benefit of this special rug includes Tetra Pak Eastern Africa, De La Rue and recently Kenya Airways and Kentucky Fried Chicken (KFC) which set up shop in Kenya last year became newest users of this rug. KFC’s health standards insist on the use of bacteria free rugs able to reduce recontamination. “This multi-purpose cloth is handy giving better health coverage, less gross bacterial contamination while absorbing and picking a lot,” Mr. Otieno explains.

"Entrepreneurship is not for the faint hearted..."

Diversification Even though the demand for ceramic tiles remains huge, local entrepreneurs such as Walls & Floors are crying foul as to why the Government has for the last three years given leeway to more than 10 Chinese manufacturers to trade in ceramics tiles driving the locals out of business. “The foreign businessmen are importing a combined total of more than 800 containers in a month of assorted ceramic tiles,” he laments. Importation of ceramic tiles is unlikely to end as the two local manufacturing companies are far from meeting the enormous demand. Apart from the high cost of production, the companies are faced with the challenge of having to import some of the ingredients used in tiles’ manufacturing. “This makes locally manufactured ceramic tiles cost up to 50% more than the imported ones,” Mr. Otieno reveals.

to 3 hours before drying and can be applied on any type of wall except glass and metal. “Being a protective and décor coat, the paint or stone based products carry a 25 years life span meaning that one can stay for long without changing the shade,” Mr. Otieno explains. To further counter direct competition and survive in the market, Walls & Floors has also gone into the importation of specific, special high end decorative ceramic tiles. Though costly, the demand for such products is present especially among the new range of upper-high income residential estates. “These are people looking for decorative tiles that add value to their properties,” Mr. Otieno explains. While the ordinary ceramic tiles costs between KShs. 550 and KShs. 750 per square meter, the price of a similar measurement of decorative tiles stands at between KShs. 1,400 and KShs. 2,000 per square meter. The company’s business associations have given it an edge in this market as they are able to source for quality, durable and attractive products.

The rugs will soon be available at leading Supermarkets costing KShs. 5 cheaper than the competitors. Consumers will be able to purchase the rugs packed in five and ten packs available in different colours. The company envisions being the leading one stop sourcing agent in the region. It is eyeing business in Tanzania, Uganda, South Sudan and Rwanda. “At all times, it is cheaper to contract a sourcing agent for home finishings as sourcing them individually can be quite a task,” Mr. Otieno advises. Walls & Floors is in the process of opening an outlet in Siaya County to serve clients coming from the Great Lake region.


2012 Barcoding Workshop I rush into one of our local supermarkets darting to the pastry section, in my rush all I am interested in is the expiry date on whatever bread I lay my hand on, having made my pick I make a dash for the till. There are no queues - what a relief! but upon reaching the till the bar code won’t scan; after two or so attempts the lady at the till goes ahead to key in the number on the bar code, the ‘cost’ of my loaf of bread appears, I pay for it, take my receipt and leave. The whole family loves the bread so we agree to buy it more often. My next visit to the supermarket for the same loaf takes me through the same bar-code-will-not-scan fiasco it further reveals that I paid more for the bread than I should have – an additional 23 shillings – and in these hard economic times!!! Why? you would ask… GS1 Kenya trainings, workshops and seminars give both members and non-members the opportunity to learn from each other’s experiences not to mention the best practice when it comes to managing your bar codes, how your bar code quality affects you as a manufacturer / supplier, bar code colours and placement, and generally why one bar code will scan and another not scan. Join us! The schedule is as follows: MARCH

Wednesday 14TH



Wednesday 18TH



Wednesday 16TH



Wednesday 13TH



Wednesday 18TH



Wednesday 15TH



Wednesday 12TH



Wednesday 17TH



Wednesday 14TH


GS1 Gateway FEBRUARY - MARCH 2012

Who Should Attend? 1. All new members 2. Bar code Co-ordinators 3. Packaging Supervisors 4. Product & marketing managers 5. Supply chain and Operations managers and staff 6. Exporters and Importers 7. I.T. Personnel involved in logistics 8. Logistics Suppliers


Workshop Fees: • Ksh. 3,000 (exclusive VAT) per member delegate. • Ksh. 4,000 (exclusive VAT) per non member delegate. The workshop can also be organized in house with the bonus of all barcodes verified. For in house contact our office for arrangements. For more information please contact us on +254 (20) 2319414/2385270 or 0710-122252/0735-965168 E-mail: Be sure to book early, seats are limited


Traceablity The GS1 traceability standard makes it possible to automate traceability with a set of complementary technologies.


n the manufacturing sector, managers constantly need to know the answers to a variety of questions; does the shipment contain what the company ordered for? Is the physical flow of my goods optimized? Would I have the information I needed, if there were a recall or withdrawal?

Traceability can provide the answers to such questions– and many others. At the same time, traceability can only be achieved successfully if it is built upon global standards that can act as the foundation for clear, understandable exchanges for everyone involved. This is where GS1 comes in.

Advantages of GS1 – 128 barcode are: 1. It is widely used 2. Flexibly configurable data content 3. Encoded alpha-numerically 4. Worldwide symbology protection (IS0/IEC 15417) 5. Symbology more compressed than other linear symbologies such as code 39 6. Linear symbology 7. The use of a system internal check digit algorithm makes the standard extremely reliable 8. Can be read with commercially available laser scanners.

The GS1 standards make traceability systems possible on a global scale, for both small and large organizations, all along the supply chain, no matter how many companies are involved, no matter what enabling technologies - Bar codes, RFID, EDI are chosen. Manufacturers, Logistics’ providers and retailers are facing a multitude of new challenges including the volatile oil prices, the need to work with reduced inventories while maintaining high service levels, an increasingly ‘tense’ extended supply chain requiring tighter production planning, closer production monitoring and more efficient logistics scheduling from upstream materials to consumer homes. In short, they need constant access to business-critical product information in their supply chain operations, need global track and trace capabilities that can provide realtime visibility over goods while at the same time minimize the production and distribution of unsafe or poor quality goods which is a key enabler of services that provide supply chain visibility, from reception to distribution. Traceability programmes can also help track and trace items from huge shipping containers to small packages and letters. This way they could contribute to enhancing the security of logistics and customs traffic. GS1 128, the gold standard

Together they allow for the use of unique identification schemes such as the Serial Shipping Container Code (SSCC) and the Global Trade Item Number (GTIN), as well as for adding other information in a standardized manner to the packaging or product barcode. The GS1-128 Standard plays a pivotal role in today’s product logistics. The application identifier System allows information to be added to the SSCC; which serves as a unique package identifier on the GS1-128 transport label, which forms the centerpiece of any tracking and tracing system and at the same time allows for efficient product recall processes. GS1-128 barcode was adopted as a universal standard at an early stage, particularly in the food industry.

Earn and Redeem Points anytime throughout the year GS1 Gateway DEC 2011 - FEB 2012 GS1 Gateway FEBRUARY - MARCH 2012

The GS1-128 barcode was launched in the 1990s primarily as a logistics’ process automation tool, for which the Application Identifier System was also originally developed. When used in combination with the Application Identifier System, the GS1-128 standard provides greatest flexibility to this day.

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Barcode Colours: Dos and Donâ&#x20AC;&#x2122;ts The Ideal Colour Combination is Black Bars on White Background Other Suitable Colour Combinations: Dark Bars :

Blue / Green / Purple

Light Bars :

Red / Orange / Yellow

Acceptable Colours


GS1 Gateway FEBRUARY - MARCH 2012

Wrong Colours



Barcodes in the pharmaceuticals industry he use of barcodes on medicine and other medical devices will be an important step to improve patient safety and allow the tracking of medicinal products before, during and after any medical procedure.


Already, in 40 countries worldwide, mandates for automatic product identification exist today while others are in the phase of developing regulations for barcoding of healthcare products, acknowledging the advantages for patient safety.

Hospitals and care facilities are extremely complex environments in which careful attention must be paid all the time however; doctors and nurses are only human, thus chances of unintentional errors may occur. Sometimes the wrong medicine or device may be administered or used respectively to a patient or the right dose of the right medicine with the right device used on the wrong patient.

While studies conducted in Veteran Affairs hospitals (USA) in the 1990s showed that the use of barcodes reduced medication adminis¬tration error rates by up to 86%, only a small number of hospitals have recently started to use this technology to improve patient safety. Current estimates indicate that only 2–6% of hospitals in the USA are using barcodes to reduce medication administration errors.

Reports indicate that on a daily basis, numerous patients loose their lives or are rendered disabled owing to medication errors even though the health sector strives to prevent such cases from becoming rampant.

It is expected that the number of hospitals will increase significantly in the near future, with more products carrying a barcode and more publications reporting the benefits of barcodes

One of the efforts that the sector has continued to embrace is the establishment of a traceability system to enhance patient safety and improve the quality of care. GS1 Traceability systems enables verification and authentication of medical products throughout the global healthcare supply chain, making implementation faster and more effective, while improving the supply chain’s safety and integrity.

References: Technology/update Barcoding by Ulrike Kryesa – Group Manager GS1 Global..

In a hospital, barcodes can be used to improve processes in the following areas:

• Patient safety, clinical care delivery and patient tracking by using barcodes for: – Pharmaceuticals down to unit dose level – Medical devices down to unit of use level – Identification of hospital staff and patients – Order requisitions test/results and patient charts/medical records. • Product, supply and material management for: – Inventory control/tracking – Materials tracking and logistics – Tracking of reusable/refurbished equipment and supplies – Reverse supply chain (e.g. product recalls and warnings).

GS1 Gateway FEBRUARY - MARCH 2012

• Patient registration and admission for: – Patient forms – Patient labels and wristbands – Patient records – Patient accounting and billing.


GS1 Kenya

in Pictures GS1 Kenya staff bonding over fun, games and team building during a staff retreat at Lukenya Getaway.

Events Membership

GS1 Gateway FEBRUARY - MARCH 2012

GS1 Gateway NOV 2011 - JAN 2012

GS1 welcomes these Organisations who have attained Membership as from January to February 2012.


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The GS1 Gateway is a complimentary magazine showcasing various issues within the supply chain. We are currently expanding distribution beyond our more than 3,000 GS1 member Companies. With our wide distribution overage, through aggressive direct marketing campaign, the GS1 Exhibitions, Seminars, Training and Conferences, we are now reaching thousands not only in Kenya but within the East African Region and beyond! We invite you to advertise in our next issue of this dynamic magazine at our subsidized rates below in order to enjoy this great marketing tool.

Advertising rates for the Gateway Magazine 2010/11 Advertising Space

Rate for GS1 Members

Rate for Non- Members

Eighth Page Quarter Page

Ksh 30,000 Ksh 55,000

40,000 65,000

Half Page Full Page

Ksh 70,000 Ksh 120,000

80,000 130,000

Inner Cover Page

Ksh 150,000


â&#x20AC;˘ All costs Exclusive of 16% VAT â&#x20AC;˘ The above rates are for full colour advertisements. All adverts should be saved in Adobe Illustrator, Adobe Photophop or Hi-Res PDF

GS1 Gateway FEBRUARY - MARCH 2012

For further information, please contact the us on +254 (20) 231 9414 or 238 5270 or email:


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GS1 Gateway | Issue 14

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Gateway Issue 14  
Gateway Issue 14