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Investment News



September-October 2015

Special Reports WHAT IS THE SIZE OF AFRICA? - and how has that af-

REGULARS PUBLISHER’S VIEW .. 4 Discussing Prof. Kivutha Kibwana‘s traditional skills succession question LAST WORD ……… ..30 Just what is salary harmonization? Emma Muli discusses the issues involved and the use of school certificates. QUICK NEWS……………5 Are there human beings in the planet Mars? Now the American NASA releases startling findings. Find out this and many more in this column.

fected trade in the continent? A German who is leading the interesting project redraws Africa in a world map he says will shake people's perceptions a little.

HOW MUCH IS YOUR TONGUE WORTH? Find out in this excellent article

REPORT ON KITUI COUNTY INVESTOR MEETING In the exhibition tents, you could confirm the quality and taste of Kitui mangoes with well package, inexpensive and natural mango juice


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Investment News Editor Muli wa Kyendo Associate Editor Emma Muli Contributors Uncle Sandu Marketing Charles Kavuu Sylvia Njuguna Investment News is published bi-monthly by Investment News Ltd, P.O. Box 2025700100, GPO, Nairobi, Kenya, Tel: 0773991820 , 0721302418, Email: Editor @investmentnews.co.k e ISSN 1814 The Editor welcomes contributions but takes no responsibility for loss or damage. All rights reserved Copyright: Investment News Ltd


Preserving African Skills and Traditional Arts At the recently concluded Kitui Investor Conference, the Makueni County Governor, Prof. Kivutha Kibwana asked an important question: How is the Kitui County ensuring that traditional skills and knowledge are preserved and passed on from one generation to another. (see centre for more details). With the rise of colonialism, the African lost not only their land but also much else. Among these was respect the knowledge and skills that had, for years guided them. To colonize a person, you must dehumanize them. It is just common sense. You will not praise the achievements of your slave. This is what happened in African. Ancient Egypt was the first civilized nation on Earth. Much of what we call civilization today—including national budgeting - was developed in Egypt. The colonial Whites were faced with a dilemma—to claim Egyptians were Whites or to

ignore them and attribute their achievement to a nation that they could claim was white. Greece, lying off the African continent, provided what the colonial wanted. All Egyptian wisdom was attributed to the Greeks—even though we know all the Greeks came to Egypt to learn. African knowledge and skills were repackaged and brought back to Africa as European civilization. In Kenya, we border Ethiopia where coffee was discovered. But when it crossed the artificial border made by colonials, we were made to believe it was European beverage, not fit for the locals to grow. Similarly you can say the same of Christian religion and many other things. As we develop into counties, we need to develop systems and laws to protect and improve traditional knowledge and skills. Prof. Kivutha Kibwana is in a position to start.

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Quick News

in the future.‖

NASA Now Says There is Life On Planet Mars In a statement, the United States National Aeronautics and Space Administration (NASA) has said there is life in mars. ―It took multiple spacecraft over several years to solve this mystery, and now we know there is liquid water on the surface


of this cold, desert planet,‖ said Michael Meyer, lead scientist for NASA‘s Mars Exploration Program at the agency‘s headquarters in Washington. ―It seems that the more we study Mars, the more we learn how life could be supported and where there are resources to support life

Photo shows water flowing in Mars

But scientists say there is more than water in Mars. Artifacts found on the planet show that there have been other living creatures visiting Mars or living in the planet. ―I'll tell you what: There is life on Mars right now. Living, breathing, replicating and evolving. Mars is alive with "extremophile" microbes that live in the soil and the water flows. In fact, life is abundant across our cosmos, which means we are not alone,‖ one scientist said. While such possibility opens of human beings from earth colonizing Mars, it also raises ancient fears that human beings could at one time come under attack from other humans who may want to colonize planet Earth.

Tall Expectation for the Konza Techno City On completion of phase one of the Konza City by 2018, the mega city is expected contribute Sh90 billion or approximately two per cent to the country‘s gross domestic product (GDP). The city is also expected to provide jobs for nearly all the secondary school leavers. Fourteen large firms have expressed

interest in the first stage of the Konza Technology City project set to be carried out in four phases of five years each. Local firms setting up at the Sh26 billion project include Safaricom, Wananchi Online, Kemri, Kari, the University of Nairobi, the Jomo Kenyatta University of Agriculture and Technology and the Nairobi Hospital.


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It is a profession that is accessible to most Kenyans but which is ha

Approximately one quarter of the population are considered ―Supertasters‖, but among those, few have a palate as refined as Sebastian MichaelisTetley‘s master tea blender- whose tongue is insured for $1.5 million. With more than twice the average number of taste buds, ―supertasters‖ experience flavors much more intensely than most. Sugar tastes sweeter and bitter flavors are sharper. Although the genetic trait is common, affecting about 1 in 4, only a few will join the ranks of professional tasters like Tetley‘s top tea blender, Sebastian Michaelis who can taste and grade any of 1500 different tea varieties in just 15 seconds with complete accuracy- a skill so valuable that his tongue has been insured for $1.5 million. What makes the tongue of a professional taster so unique? As it turns out, it takes a lot more than genetics. Top tea tasters undergo several years of intense training to develop the precise palate skills and expertise needed to discern minute differences in flavor. The ability to quickly identify the country, region, and even the estate from which a single batch of tea originated is essential, as well as the skill to artfully blend the leaves to achieve a consistent cup. Ironically, tasting talent is often found in people with little interest in food. Sebastian Michaelis did not start out to be a tea blender or taster. After graduating with a degree in philosophy, he answered an advertisement for a trainee tea tester- the initial requirements being a willingness to ―travel the world

and drink tea‖, which he thought sounded nice. He was not a ―foodie‖ by any means, and he had no special interest or knowledge of tea. Still, Tetley selected him from hundreds of heavily screened applicants to begin a five year intensive training program, learning every aspect of tea tasting, growing, manufacturing and marketing. Today he and nine others are part of an elite tasting team at Tetley, entrusted with the tea

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ardly known in which you can make millions


―He said, ‗Look at this ridiculous job‘. I read it, and it said, do you like tea, do you like to travel. And I thought – yes, that sounds great. So I applied.‖ Now, Sebastian is one of 10 tea blenders at Britain‘s largest tea manufacturer, and has a palate so refined that his employers have just decided to insure his taste buds for £1m. Considering that Heidi Klum's legs are only worth £1.4m, it's a pretty big compliment.

company‘s legacy and a top secret recipe so valuable the team members are not even permitted to fly on the same plane together. So how much is your tongue worth? If you‘re a supertaster by birth, with a willingness to train rigorously for several years and you have a bit of luck, the answer may be ―plenty‖!

The company considers its blenders so important that not only do they undergo intensive training for five years, but they aren‘t even allowed to all travel on the same plane, for fear that the

The Best Example Sebastian Michaelis never used to think much about tea. ―I was into tea in the sense I had lots of cups of tea when I was a student, but didn‘t know much about it,‖ he confesses. ―I wasn‘t into food at all, really - more of a pie and pizza man.‖ That all changed when, after graduating in philosophy, a friend sent him an advert for a trainee tea tester at Tetley.

secrets of Tetley‘s nearly two-century old blend could be lost. ―It‘s flattering,‖ says Sebastian, who, with his rather dapper moustache, looks like he could have been at Tetley when it started brewing cuppas in 1837. ―I love tea, and to be insured is quite something.‖


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Cover Story

Revisited: What is the Size of Africa and What Does it Mean for Trade in the African Countries? A German graphics designer Kai Krause is leading an interesting project –he has produced a map that he says will shake people's perceptions a little. The question he is trying to answer is: How large is Africa compared to the rest of the world? To United States, or

Western Europe, for example? The answer is important in todays world of power politics and exploitative world economies. It is even more important in the tourism industry—a top earner in most countries— and where a cough in Lagos is assumed to have the potential to send a heft man

reeling in Mombasa at the Kenyan coast. And the reason is that people don‘t know the size of Africa It may sound far fetched, but think of the Ebola scare. Trade in Africa slumped from the cape to Cairo, from Lagos to Mombasa.

Investment News Moreover, political question arise: Can Africa turned into one centrally governed country like the United States of America? Influenced by the USA, many Africans still dream of a United States of Africa. Ghana‘s founding President Kwame Nkrumah was so convinced of feasibility of the project that he spent much of his time promoting the concept. Most inhabitants of the latter places might guess it is a little larger, but few would

have any idea of the scale of the difference. Karl says the problem is that it is difficult to represent a sphere—which is what the world is—on a flat surface. ―The problem is that these maps exaggerate the size of the countries at high latitudes, and shrink places near the equator - leading to a perception that Europe is larger than South America, to pick just one example among many,‖ Karl says


Arno Peters, German map maker, historian, and journalist, developed an equal area map projection in the early 1970s in order to counter the commonly used ―Eurocentric‖ Mercator map projection. He stated, ―In our epoch, relatively young nations of the world have cast off the colonial dependencies and now fight for equal rights. It seems important to me that developed nations are no longer at the center of the world, but are plotted

This map, taken from the Economist magazine of London show many countries considered to be large can in fact, all fit in the African continent.


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according to their true size.‖ Peters initially wrote a controversial world history text and found that ―the quest for the causes of arrogance and xenophobia has led me repeatedly back to the global map as being primarily responsible for forming people‘s impression of the world.‖ It is important to note that the Mercator projection is rarely used today except for the purpose it was originally designed for—navigation. Of course, many Mercator maps can

still be found in use by graphic designers, in older classroom materials, and as inexpensive wall maps. Some have argued that since people associate size with importance this encourages the already strong tendency of the world's wealthiest nations to disregard those who live in the tropics. Even if you are skeptical of those theories, there are clearer examples. Krause initially released the map years ago, achieving a burst of

fame. The image has come back into the spotlight with a renewed relevance recently; the Ebola crisis has led to panic about visiting Africa. Any part of Africa. Tourism in Cape Town and solar installations in Tanzania have been affected because people are scared to fly to those places, despite the fact that Paris is actually closer to the countries with an Ebola outbreak than either of them.

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The Food Debate: Why Kenyans Should Reject Genetically Modified Foods

Years ago, the Editor of Investment News saved Kenya’s coffee industry from complete destruction by an American multinational Dupont which was anxious to offload huge quantities of its discredited coffee spray chemical, Benlate. Only the intervention of the Kenya

Parliament following the publication of my story saved the country’s coffee industry. And what’s bad, all the while, Dupont was using local agricultural scientists. Now we have another American multinational at our doors once again. And the issue is about


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GMOs an acronym for genetically modified organisms GMOs - a reference to foods whose genes have been altered. These controversial foods, particularly maize, were banned in Kenya, and in many other countries of the world, following a study by respected biologists which showed that GMOs cause serious


y November of this year, GMO crops will probably be legal in Kenya, if Deputy President William Ruto, will have his way. And Mr. Ruto is not alone. In Kenya, many public bodies, including the Kenya Agricultural and Livestock Research Organization, support GMOs as the

diseases. But the powerful American multinational behind the GMO technology, Monsanto, discredited for its corrupt operations in many countries, has pitched camp in Nairobi. What protection do we, as Kenyans, have against a giant multinational? Now read the story by Nguli Muli:

solution to the maize shortage in the country. GMOs have been around since the last century but have been met with resistance from governments and organizations all over the globe. Monsanto, the largest company associated with this kind of technology has actually been banned in a good number of countries:

Austria, Bulgaria, Greece, Germany, Hungary, Ireland, Japan, Madeira, New Zealand, Peru, South Australia, Russia, France and Switzerland. This mostly has to do with the health issues associated with their products. But is it just a fear of a new and unknown technology as some have claimed or are there serious negative

Investment News medical and economic issues that come along with the legalizing GMOs? Monsanto itself holds strong in its claim that the GMO engineered products are perfectly safe for human consumption. But then that‘s what everyone expects them to say of their own products. Monsanto has, over

the years, been demonized for its deceitful methods. Tobacco and alcohol companies make a lot of money killing people but then, they never claim to produce safe products. In the USA, Monsanto has been lobbying for the enactment of laws against labeling products as either GMO or organic (organic is the label for


natural foods free from alterations and chemicals). In other words, the Americans should consume their poison, if there is any, in complete ignorance. In the USA, it is not hard to see why GMO‘s are even legal in the first place. Being a key market for their products,


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the US government is full of former Monsanto employees or people sponsored by Monsanto to lobby for their interests. The Food Safety section of the Food and Drugs Administration is, for example, headed by a former Vice President and attorney of Monsanto. Unfortunately, the US is still viewed as the Big Brother that guides the rest of the world in making big decisions. Being a rather new form of technology, little research has been done by parties other than Monsanto but the few that exist as reputable sources are still worth considering.

Gilles-Eric Seralini Research Gilles-Eric Seralini, a molecular biologist, carried out a study that actually led to the ban of GMO crops in Kenya three years ago. The study which was published in Food and Chemical Toxiology reported that genetically modified corn caused serious diseases, including cancer, in rats. However, later, the findings were retracted by the journal. Seralini claims that this was done as a result of the appointment of Richard Goodman to the journal. Richard previously worked for Monsanto for about 7 years. The Oz Show Doctor Oz is one man

who has proven to be trustable as he is a master of controversy and rarely ever seems compelled to side with the medical elite. The American Health Association has actually threatened to kick him out of the association because of this. He has been on the spotlight for the labeling of GMO foods in the USA. In general, he does not believe that GMO foods are safe for human consumption and strongly advises his audience to consume organic foods. According to him, if GMOs have to be made legal, at least everyone should have a right to choose whether to consume organic or genetically engineered

Investment News foods. GMO Myths and Truths Michael Antoniou, PhD and John Fagan, PhD are two of the scientists who took part in this highly critical and in-depth scientific research. The research came up with the following facts regarding genetically engineered foods: 

They are made using methods totally different from the natural breeding process and therefore come with a different set of risks from organic crops They are not regulated adequately to ensure safety They don‘t increase yield potential

 

They increase need for pesticides They harm soil quality and reduce bio diversity while disrupting eco systems They cannot solve the hunger problem but will distract us from its real cause

Dr. Shiva Vandana, in a research, originally published in The Atlantic, tells us a frightening story. During the Second World War, genetically modified crops and pesticides were used to destroy rice farms in Japan. According to him, GMO crops are modified to resist the chemical used on them and in this way, everything but the GMO crops are destroyed by the


chemicals. The GMO Myth and Truths research indicates three potential sources of health risks in GMOs. First is the modified gene which may be toxic. Continous use may result in a situation similar to that of the polio vaccines which are now actually causing the disease they should prevent. Genetic transformation process of the organism may result in mutagenic effects or other effects that result in new toxins and allergens. This may also affect the nutritional value of the crop. Third, the farming practices that come along with cultivation of GMO‘s


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may result in toxic residues. Already an example of this exists in the herbicide Roundup.

offspring resulting from the consumption of GMO foods by Japanese soldiers.

Studies show that use of the herbicide can lead to birth defects, cancer, neurological imbalances, embryonic deaths, DNA damage and fetal deaths. Recently, a report from Japan showed a practical case of mentally incapacitated

GMO’s and Kenya’s Economy Another aspect of the GMO issue often ignored is the economic implication of the technology. By now, most of us know that Monsanto and other similar

companies are planning to stay in business by making sure that seeds cannot be replanted. In other words, they will prevent the growing of seeds which have not been purchased directly from them. A ‗suicide‘ gene that destroys the reproductive capability of the crop will accomplish this. It is also important to

Investment News acknowledge the fact that farmers who choose to stick to their traditional seeds will have to suffer if and when cross-pollination takes place as the gene will be carried to the offspring. That will leave Kenyan farmers with no option but to keep purchasing seeds from the GMO companies. Monsanto will end up controlling our seed and agriculture. Of course, if the seeds eventually fail, as they occasionally do in India, the only economic losers will be the farmers and the Kenyan government. And that‘s not the only way farmers lose. The fact that GMO agriculture depends heavily on chemicals supplied only by the GMO companies means that soil fertility deteriorates consistently creating a circle of dependency on

the companies. One research estimates that 75% of soils have been degraded as a result of GMO fertilizers. Then the farmers have to deal with the health problems resulting from exposure to these chemicals. Cancer is possibly one of the diseases caused by exposure to the fertilizers. In India, reports say there is a train that constantly carries cancer patients from Punjab to Rajistran. Usually, these are farmers that are exposed to the


agricultural chemicals. Almost everyone pays in some way for all these damages, except, of course, the companies producing the seeds and chemicals. These are enough reasons for Kenyans to support anti-GMO campaigns. We will all suffer if we do not. We have already begun to see the effects of antipolio vaccines. Let us not introduce complications by adding GMOs.


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Report on Kitui County Investor Conference Kitui is generally a quiet County. Few things may be going on there, but those few contribute significantly to the development of the County. And it wasn‘t different with the Investor conference that ran from September 25 -26 at the Kitui Show Grounds. The large hall was packed with serious local and international investors and businessmen and women. Even on the final day, serious discussion and displays were going on. Businessmen and women doing business in

Kitui were given a chance to tell investors what doing business in Kitui was like. And I watched with excitement as both old and young businessmen and women candidly told their stories. One man explained the investors what working in horticulture was like. A grafted tree of mangoes could bring you Shs60,000/- a season and you could rely on that tree for over 30 years (a traditional plant could stay for longer than 50 years).

Kitui County is known as one of the leading producers of mangoes in Kenya. And even in neighbouring counties such Machakos were , mangoes also grow, consumers eagerly await mangoes from Kitui County because they have more sugar and better quality. In the exhibition tents, you could confirm the quality and taste of Kitui mangoes with well package, inexpensive and natural mango juice. The framer told that us that among other fruits that grow in his farm were also watermelons which were easily sold in Nairobi. A woman investor narrated the beauty investing in a bakery in Kitui. She had always loved baking, she said. And she had always wanted to invest in Kitui. For that reason, she returned to Kitui after some 15 years in the United States where she had established a school business. Now her bakery was thriving, selling some 9,000 pieces of bread daily. There were vegetable businessmen, traders in construction industry and

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ensuring that traditional skills and trades were preserved with lasting succession system. many more. They all were doing good business in Kitui County. No visitor to the investor conference would not have been thrilled by the freedom, excitement and enthusiasm of the local investors during the question time. They told the county officials what they believe should be done to make the county a leading investment destination in Kenya. A man told of te waste of vegetables that goes on in Tzombe area because of lack of markets. It was surprising to hear that there were areas were food was thrown away in a county generally regarded as dry. One enthusiast official told me that contrary to what many people think, high potential agricultural areas if

put together formed larger areas that than the whole of former Central Province. Traditional food crops such as millet and cassava do very well in Kitui County. And millet was now a cash crop, with a large market among beer brewers such as Kenya Breweries who are ready to support farmers to increase acreage under the crop. The atmosphere was so free and friendly that even when Makueni County Governor, Prof. Kivutha Kibwana, stood to ask his question, few people were aware that he was actually the Governor of Makueni County. His question had apparently been provoked by the narratives of the local investors. He wanted to know whether the County of Kitui had developed a system of

Although the answers seemed to me to answer a different question, many people of te local investors were able to examine their inheritance and continuity plans. That is important because we need to encourage business people to think and plan ahead of themselves. It is a known fact that many businesses in Kenya die with the owner. Because of that most business people do not strive to grow their businesses beyond subsistence level even when they have the ability and the potential. Encouraging such people to think and plan beyond themselves would create more enthusiasm for business among parents and children.


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Cooperatives on the Move




ver the years, 2NK Sacco has striven to improve business for its members. Key in this effort has been measures to reduce road accidents. Road accidents are not only a problem to the Sacco, they are a problem nationwide. They eat into the profits of transport operators. And they kill people— innocent people.

Statistics graphically demonstrate the seriousness of the problem. According to the National Transport and Safety Authority (NTSA), every year, about 3,000 people die on Kenyan roads. Regionally, Nairobi comes first in that list; accounting for about 20% of the total fatalities. By 2013, accidents had reached an alarming 3,318 deaths. The larger fraction of the

fatalities is made up of pedestrians. Passengers follow closely, then motorists. The lowest number of deaths is that of drivers. The segment of the population most affected by these accidents is the 24-44 year-olds bracket. While at that age people are more mobile, the NTSA says they are also more reckless. For example, they are unwilling to use foot bridges, leading to many

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Enlarging 2NK Sacco Base


ne of the most important achievements for our Sacco, as we celebrate our accomplishments in the past two years, is that 2NK Sacco now has its own front office savings activity, popularly known as FOSA. The FOSA opened up to the public in February 2014. This followed the licensing of the Sacco by SASRA, the regulator for deposit taking Saccos. The licensing itself was a major achievement for the Sacco, as we are the first transport Sacco to be registered as such. And members of the public have also continued supporting the

pedestrian deaths. NTSA also notes that the same age bracket won‘t pause their mobile phone activities to either cross roads carefully or drive with full concentration. It was also established that more accidents occur on Saturdays than on any other day of the week. Wednesdays are the safest days to travel or use road in any way, according to statistics. This finding points to drunkenness as being a major cause of road accidents. Further, most

all levels of the community, including development loans and insurance premium financing among a host of other products.

Sacco, a gesture that the Sacco wholeheartedly appreciates. We pledge to continue offering them excellent services. We are in deed, happy that we are already offering a wide range of products which target

accidents are recorded between 6pm and 10pm. Reduced enforcement of traffic rules in these hours could contribute to these findings. These numbers, unfortunately, have far reaching effects on the individuals, affected families, economy and the investors in the transport sector. One fact is that the bulk of road accident fatalities is made up of young and productive citizens; many of whom are breadwinners to their families and highly

The Sacco, in its growth plan, hopes to embrace branch network, as entrenched in its 5 year strategic plan. This will enable us to serve our customers better, while also enlarging our customer base. God bless you all! - James Kahiro Chairman

productive citizens. The estimates of the economic losses in annual road accidents are at about Shs45 billion, excluding the actual loss of life. The sad fact is that most of these accidents result from very easily preventable drivercentered causes. The two leading causes are drunk driving and over speeding among drivers. It is why 2NK Sacco is in the forefront in taking measures to fight road carnage. We take pride in


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the fact that we have contributed to the restoration of sanity that is now on our roads. Through vigorous campaigns, road users are becoming more aware of the dangers posed by careless use of roads. We, of course, are a part of a group involved in campaigns to reduce road accidents. The Government has

collaborated with the players in the transport sector in these road safety campaigns. It is also necessary to acknowledge other players that have stretched their arms to educate the Kenyan public on matters relating to safety on the roads. Matatu Owners Association, East African Breweries, Global Road

Safety Partnership, World Health Organization, John Hopkins International School of Public Health, World Bank Global Road Safety Facility, Association of Safe International Road Travel and The World Resources Institute are some of them. In April this year, the campaign Save 1000 lives

‘ We Remain Preferred Choice’ It has been close to 2 years since the last edition of our magazine. And it has not been an easy walk. But we can truly say God has been faithful this far. What with all the new regulatory requirements, in April 2014, when all vehicles were required to be fitted with new, much more expensive speed governor, amid the confusion of just a few accredited fitters and a scarce supply. This caused a lot of inconveniences to investors, who were subjected to long periods of waiting, losing a lot of business as the vehicles were not allowed on the road in spite of having functioning, previously fitted speed governors. A ban on night travel did not help the situation, with the effects being felt again by the investors. In as much as 2NK

Sacco is always at the forefront when it comes to compliance matters, coupled with our determination to reduce road carnage, which was the main reason why the government banned night travel, there was need to also address the issue of heavy commercial vehicles doing night travel as well as they also were a contributor to these accidents. A ban on importation of low capacity vehicles was also a major drawback particularly for the better part of the year 2014, but we thank the president for having come to our aid at the

end of 2014, lifting the ban on importation. On a positive note, the Sacco has continued making positive strides in line with its vision, “To be the leading transport and financial services provider in Kenya." After the lifting of the ban on importation of the low capacity vehicles, the Sacco has supported members tremendously in acquiring the new model of matatus, popularly known in the matatu quarters as ‘choppers’. This has not only provided the customers’ preference but further given the Sacco a competitive edge while remaining relevant in the transport business. Anne Kinyua Chief Executive officer

Investment News was launched jointly by the NTSA and National Road Safety Trust. The campaign listed its key goal as reducing the number of road accidents on our roads by a third in the next 24 months. It intends to mobilize the private sector to effectively actualize and manage its programs. The result of all these activities has been a decrease in road accidents—and therefore, hopefully an increase in the profitability of transport operators. Last year, for example, 2,907 deaths on the road were recorded; which was an improvement from those recorded in the previous years. This year, the numbers should be much lower, going by current trends and predictions. It is estimated that within the first seven months of this year, about 1,085 people have died in road accidents. 2NK Sacco has

played a key role in this effort to make Kenyan roads safe. Its new regulations ensure employment of drivers with good conduct. Towards this end, it has intensified education of drivers on road safety. And above all, we have installed motoring gadgets that have made our vehicles the safest on the roads and reduced losses incurred through bad road usage and driver misconduct. 2NK Sacco has embraced modern technology to help not only reduce road accidents but also to


manage its fleet. The technology provided by Frotcom Limited enables 2NK Sacco to monitor the behavior of drivers and other road users on the road. That way, we can know and demonstrate who was at fault in the unlikely case of an accident. Combined with internet access, 2NK members as investors can literally watch over the movement of their vehicles as well as communicate with the driver for fresh instructions and updates.


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Barley crop affected by drought


It Reduces Farming Risks BY


Crop insurance is a vital part of the world‘s agricultural industry and a key risk management tool for the modern farmer. Despite their best efforts, farmers will often suffer because of drought or even excessive rainfall or hail and frost in some parts especially during harvesting. We cannot

control weather patterns and therefore extreme weather conditions can hit a crop at any stage of development. A farmer can only be at peace when the whole crop is harvested and safely in the store. Till then the farmer isn‘t sure of the harvest. It is due to such uncertainties that farmers take insurance as a risk mitigation tool. Insurance gives a farmer some peace of

mind that if extreme weathers prevails then he/she will be able to come back next season. Insured Events The insurance offered is mainly a multi-peril cover. The crop is covered for Yield Losses, arising out of any or a combination of the following weather perils:



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Don‘t Let Your Brain Slip into from Memory Loss If you expect to live into your 80s and beyond, which I dare say most of us do, there's an important statistic you need to be aware of... BY JOSHUA CORN According to the American National Institute on Aging, by the time you reach your 80s, you have a 50% chance of suffering from significant cognitive decline. That's right, the odds that you'll literally lose your mind by the time you're in your 80s are no better than the toss of a coin! It's sad but true — there is no cure for age-related cognitive decline, and experts say that the problem is becoming increasingly widespread. But that doesn't mean you have to be a "sitting duck," just waiting to become another victim. While the cause of this sharp rise in age-related cognitive decline is not fully understood, one thing is for sure — if you want to keep your mind and memory

intact as you age, you can't risk a passive "it won't be me" mentality. Just a few simple steps can help stack the odds in your favor for an active brain and healthy memory throughout your life

leading to sluggish thinking and memory impairment. Yet, far too many people are deficient in CoQ10, especially seniors. That's because as you get older, your body produces less and less CoQ10.

Based on my research, the following three nutrients are the "best of the best" and what I believe to be the overlooked "secrets" to preventing cognitive decline

However, when you do have adequate levels, your mind and memory thrive!

SECRET No1: This Antioxidant Is the Brain's Fountain of Youth Your brain depends on the powerful antioxidant CoQ10 to keep it healthy. This makes sense since CoQ10 is a primary player in your body's energy production processes, and your brain has incredibly high demands for cellular energy. Research shows that deficits of CoQ10 severely compromises brain function,

SECRET No2: The Omega-3 That Your Brain Craves One particular omega-3 called DHA (docosahexaenoic acid) is absolutely critical to optimal brain function. As you age, your brain's ability to absorb DHA declines and your levels can drop significantly. This literally starves your mind, compromising both brain function and memory retention The results of scientific studies on the TURN TO NEXT PAGE

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Crop Insurance Lowers Risks

5 Fire

enough to avoid the farmer or the insurer reading the season. Farmer should factor insurance as a cost of production and budget for it early. More and more farmers are insuring their crops and especially so, for the large farmers.

6. Uncontrollable pests and diseases

Crop Insurance and Credit Access:

To get insured

One way of protecting agricultural credit is through crop insurance. Banks will normally recover agricultural loans from farmers by asset recoveries (tractors, combines). Surely, a humane way of recovering these loans would be through crop insurance. The insurance company pays the bank directly after a bad season. The farmer maintains his creditworthiness and is able to access finances for the next season. Crop insurance makes farming a less risky venture and therefore attractive.

FROM PAGE 25 1.Excess Rains 2.Drought 3.Hail Damage 4. Frost Damage

To get covered, a farmer will need to provide the insurance company with historical yield data, say for the 5- 10 years. This will establish the longterm average over the years. For example, most largescale farmers in Moiben have produced on average 15bags/acre of wheat. Insurance will cover up to 65% of this average. This is referred to as the Yield Guarantee. Thus, if a farmer chooses a 65% Yield Guarantee, he will be covered up to 10 bags/acre. The price per bag is preagreed at the point of insurance and will not be altered at the point of harvest. This price should not be speculative. Crop insurance is taken early

Sahelian Solutions (SASOL) Foundation has over 20 years experience in Food Security interventions in Kitui Kenya

* Fredrick Kinoti, Agricultural Underwriter, CIC General Insurance Ltd

and selected countries in Africa, reaching over 400,000. SASOL leads in development of water structures for food


Memory Decline FROM PAGE 26

brain protecting effects of DHA are incredibly compelling. For example one study showed a 60% decrease in cognitive decline in those who had a regular intake of DHA. Additionally, research has shown that those suffering from cognitive decline have dramatically lower levels of DHA in their brains SECRET No3: One of the Most Powerful Brain Protectors Ever Here are 2 factoids about the nation of India. Fact 1: The nation of India has the highest consumption rate of the spice turmeric in the word. Turmeric is the primary spice used in curries. Fact 2: India has one of the lowest rates of cognitive decline in the world, with a death rate that is 8 times lower than that of the U.S.

production among others. SASOLis headquartered in Kitui town.


Investment News


Follow-Up Marketing

How to Win More Sales with Less Effort If you‘re only doing one or two follow-ups imagine all the business you‘re losing. Not following up with your prospects and customers is the same as filling up your bathtub without first putting the stopper in the drain A study done by the US Association of Sales Executives revealed that 81% of all sales happens on or after the fifth contact. If you’re a small business owner and you’re only doing one or two follow-ups imagine all the business you’re losing. Not following up with your prospects and customers is the same as filling up your bathtub without first putting the stopper in the drain! But don’t be disheartened if you’re among the 90% of business owners I talk to that don’t do any follow up. The good news is you have ample room for profitable

improvement. Consistent follow -up creates a predictable and profitable stream of prospects and customers that buy. Small businesses that capture leads and follow-up with them enjoy higher conversion rates and a higher percentage of referrals than those that don’t. What Does a Good Follow Up System Look Like? A good follow up marketing

system should have three attributes. • It should be systematic, meaning that the follow up process is done the same way every time. • It should generate consistent, predictable results.  It should require minimal physical interaction to make it run, meaning it should be able to run on autopilot.

Investment News Three Types of Follow Ups There are three types of people you should be following up with, suspects (people in your target marketplace), prospects (people who have responded to your marketing but have not purchased, and customers (people who have purchased something from you.) Each follow up message and offer will be different for each type of person. With suspects, you’ll want to entice them to call you or visit your store / office. With prospects, you need to persuade them to make their first purchase. And with customers, you want to convince them to come back and do more business with you and give your referrals. Your Follow Up Marketing Tools Your principal follow up marketing tools are the telephone, direct mail, and email. Many pool and hot tub business owners make the mistake of jumping right on the telephone to follow up; however, most prospects don’t want a pushy sales message right away and most prospects have been trained to consider anyone who calls up to be a pushy salesperson. Instead, you should try to develop a relationship of trust with your prospect by quickly sending informational items such as special reports, audio CDs, or videos before you make a phone call.


reminds your prospect that you care enough to continue the conversation.

Remember to always include a "next-step-offer" to accompany your educational materials. If the next step is to visit the store, then entice them with an appropriate offer or if the next step is to call you, entice your prospect to call you immediately. People move through the buying process in baby steps, especially when considering buying high-ticket items such as hot tubs or pools. Your offer should always help them take the next step.

Usually, when doing direct mail you should include three to five mailings spaced out about seven days apart. When using a sequential auto-responder you can have as many follow ups as you want because using email is basically free (that’s why you always want to get a prospects email address). One of my clients has over 20 follow-ups in his auto-responder sequence that go out over a six month period. Each sequence should follow a logical argument and you might consider bolstering the offer with each communication using a deadline as a motivator to act now.

Your Follow Up Sequence The power of your follow up will lie in your follow up sequence. Your follow up sequence is a series of communications with your prospect that are "linked" together, with each communication building on the previous message. For instance, you might start your second letter by saying, "10 days ago I sent you a letter..." You might also consider stamping the message, "2nd Notice" on the envelope to let people know this is the second time you’ve contacted them. Referencing the previous communication links what you’re saying with what you’ve already said and

As an example, in the third communication you could say, "I’m surprised you haven’t taken me up on my generous offer. What’s holding you back?" Or consider saying, "I’ve written you three times and you still haven’t taken me up on my offer so I’m going to pull out all the stops and make you an offer you simply can’t refuse." Notice how the language always links the previous communication and increases the boldness of the offer. It’s the same type of conversation you might have in a regular sales conversation.


Investment News

Teachers Deserve Much Better Treatment—and Salaries No Kenyan denies the fact that teachers in public schools deserve better pay and treatment. Even those who have voiced contrary opinions are saying they should wait until the economy improves. The question is when will the economy improve. May be next month. May be next year, May be 10 years from now. I guess teachers who have been in one of the longest strikes ever in Kenya, would not mind that if we were all swimming in the same boat. But they are seeing others rising fast. Among these are parliamentarians and the so-called parastatal workers. It has now become regular thing to expect that when the Government wants to increase salaries of particular category of workers, they create a parastatal for them. Never mind that we

have the Sarah Serem Salary and remuneration commission. As the teachers have pointed out, employees of the Teachers Service Commission (TSC) are paid many times more than they are paid. A clerk with a D Grade in the school certificate examination is paid Shs 35,000/per month with other luxurious benefits. A secondary school teacher with an excellent grade in Form Four (and you must have a minimum of B+ if you are going to be admitted at the a public university as a regular student) starts at Shs 31,000/-. Is there any justification? Of course not. Only the Commission of Serah Serem can find a justification for that and comes out to openly announce it without shame. Again, what justification is

there for rubbishing education certificates and successes into which parents have sunk thousands of shillings and the certificate holders have spent sleepless nights to achieve? No one knows except the UhuRuto Government and the Serah Serem Commission. Teachers are not the only ones complaining. Indeed the entire civil service needs salary improvements—and very urgently. Those who invented certificate system knew it was the only justifiable way of selection and determining remuneration. To abandon the system is to consign ourselves to the whims of human mind and emotion such as we are seeing with Serah Serem‘s Commission. Let sense return to the country. Let us use sensible ways of determining proper compensation for work.

Profile for Investment News

Investment News Magazine - SEP 2015  

Investment News September 2015

Investment News Magazine - SEP 2015  

Investment News September 2015


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