Investment news july august 2018

July/August, 2018

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The gateway to Kenyan business community

Why you should not think of housing bond

FOCUS ON THE MACHAKOS COOPERATIVE UNION’S COFFEE MILLING PLANT

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Volume 1, Issue 1

Inside This Issue

July/August 2018

Cover Story

REGULAR COLUMNS AND COMMENTARY

Housing Bonds and why they fail to take off in Kenya despite some obvious advantages: An analysis of why housing bonds have repeated failed in Kenya taking the case of National Housing Corporation

Publishers view Since Uhuru Kenyatta and his deputy William Ruto came into power, there has been continuous theft of public funds.

Just what has gone wrong?

What the Central bank of Kenya will do in the fight against theft of public funds, Central Bank Governor outlines the tough measures the bank will take.

NEWS IN BRIEF A sampling of the important and enduring news

Best Practices About the many wrong myths held about women and management

Special story Focus on Machakos Cooperative Union’s LECOM - a coffee processing plant that is now the buzz word among coffee farmers in Machakos County and far afield.

Read about the history and the benefits farmers are getting

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PUBLISHER’S VIEW

Editor Muli wa Kyendo

Associate Editor Emily Muli

Contributors Francis Ochiend Wilfred Gachanja Nguli Muli

Marketing Charles Kavuu

Mary Mumbua David Macharia

Investment news is published every two months by Nairobi Editing and Publishing Services, P.O. Box 20257-00100 Nairobi, Tel: 0773991820, 0721302418 Email editor@investmentnews.co.ke Web Www.investmentnews.co.ke ISSN 1814-9966 All rights reserved; Copyright: Nairobi Editing and Publishing Services

Time for Uhuru and Ruto to act against theft of public funds It is difficult to understand what has gripped Kenyans with the administration of Uhuru Kenyatta and William Ruto. Much was said about youth taking over and putting a new life to the administration of the country when Kenyatta became president and Ruto became his deputy. Today, no one talks about it as we are all watching with amazement as the country wealth is plundered—very careless and very openly. It is not even an effort for people to steal—it is purely to waste, perhaps to frustrate.

Consider the woman hairdresser who in the Anne Waiguru saga siphoned off millions of shillings carrying some of it in sacks. People wondered how a hair dresser managed to penetrate the Nation Youth Service (NYS) and to be entrusted with loads of money by the thieves inside the organization.

But if that was amazing what about the woman designed who says she received Shs 15 million in her account without ever having supplied anything to the NYS. Several questions arise: How were the thieves to ever get back the money? If they weren’t expecting to get the money, what was the point of such senseless activity?

The one thing we can say is that Uhuru and Ruto must start to act.

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News in brief

Director of Public Prosecutions Noordin Haji: Will he save Kenyans or will he not?

The direction the Shs Sh9 billion dtolen from the National Youth Service now depends of the Director of Public Prosecutions (DPP) Noordin Haii after the files were taken to him for scrutiny and possible prosecutions.

Files No. 51 of 2018 to 60 of 2018 were forwarded to the DPP by the Director of Criminal Investigations George Kinoti.

The DPP said the files touch on 10 companies and more than 40 individuals who are under investigation over the possible loss of

taxpayer's funds at the NYS. According to reports, many of the thefts involved double payments of payment vouchers.

In one case, four payments were made to a company for one voucher.

Each of the payments was worth more than Sh46 million, with the difference in amounts varying by only a few hundreds of shillings.

Monkey skin returned to owner A Tugen traditional shawl owned by a 93-year-old Eldama Ravine elder was returned days after it went missing after it was used during the coronation of Deputy President William Ruto as an elder.

How the regalia belonging to Mzee kimitei Kiplangat ended in the DP’s ceremony still remains a mystery.

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News in brief

Cuban doctors are, at last, here The 100 Cuban doctors will arrive in

Counties are expected to cater for

the country on June 7, 2018.

their housing and transportation costs to and from the hospitals.

Health CS Sicily Kariuki (pictured)said the arrival date was arrived at after a

The plan to import the doctors has

MoU was signed last week between

received a lot of criticism from the

them and the council of governors.

doctors union who argue that the government should employ local

.Each county will get at least two specialists.

jobless doctors.

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Cover story

Housing Bonds and why they fail to take off in Kenya despite some obvious advantages When he was Prime Minister, Raila Odinga launched an ambitious scheme known as Housing bonds. It was based on the understanding that demand for houses in Kenya stood at 150,000 units per year while supply was a meager 35,000 units. Because of this gap, the price of houses had shot through the roof. Buru Buru was cited as a good example. There the price had risen from Shs170,000 to Shs4million.

To increase urban housing and reduce prices, the government was launching a Housing Bond to raise money for construction of cheap urban houses.

There was a lot of hullabaloo, then silence.

What exactly happened to the Housing Bonds? What are Hosing Bonds and how would you have benefited from them?

According to Investopedia a bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.

When you invest in a bond, the bond you buy will show the amount of money you paid which is called the “face value�. The interest rate paid is called coupon rate or yield. The deadline for paying the money back is called

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“maturity rate.”

Following the collapse of the government housing bonds, other players, notably the National Hosing Corporation (NHC) came in.

Their story is has been described as an illustration of the twisted nature of dealing with bonds in financing real estate development in Kenya. The first example is the National Housing Corporation (NHC) housing bond that has experienced enormous setbacks since it was launched.

NHC is a state corporation. In January 2015, NHC announced that it would issue a housing bond in the second half of 2015. At the time of the announcement, the corporation was concluding the final processes of approval ahead of the issue of the KSh 5 billion housing bond. It had already acquired the approval of the ministry of finance.

The proceeds from the housing bond were to be used to finance new projects and increase the production of the EPS panels at NHC’s Mavoko factory. The three projects to be funded are in Stony Athi, Mombasa and Kisumu.

The period or tenor of the bond is expected to be between five and ten years. The bond will be exempted from tax.

NHC was started in 1967, but this was the first time that NHC was borrowing from the private market through the Capital Markets Authority.

The state corporation, which has performed below expectation because of “limited budget” wanted to achieve the following:

In most urban areas in Kenya, most families live is these type of houses because of inavailabilty and cost of houses.

What is EPS Building technology?

EPS building technology is an Italian technology that was expected to lower coast of houses by 30 per cent.

Its full name is expanded polystyrene and involves construct of houses by assembly ready made EPS foam, sandwiched between galvanized steel wire that is plastered on both sides with concrete.

A standard two bedroomed house measuring 100 square metres requires about 70 panels each weighing 15 kilograms. That means that the entire house can be carried in a single lorry load.

Despite the low weight, the technology is said to be robust enough to withstand all natural vagrancies and t o be able to build up to 2o storeys.

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Issue cheaper housing bond to raise more capital. NHC had been funding its past projects through debt and from the money obtained from the sale of the houses it develops.

It was felt that it would be easier for the corporation to raise funds from the public as opposed to borrowing.

The corporation also aimed to form partnerships with developers. The model was to create and sustain partnerships with developers who would fund the projects with NHC providing the land and technical resources required to design and put up the houses.

Although all the procedures were followed and the government approved the bond issue, it failed to take off as the government

Middle class modern estate in Nairobi; More of these is what is needed

could not guarantee the bond since, in NHC’s risk rating was unfavorable. Due to failure to back up the bond, it would have been an expensive option. Corporations such as NHC seeking to issue bonds are required to have a strong balance sheet in order to obtain acceptable credit ratings as well as to secure a guarantee from a third party.

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NYS Corruption suspect List In what seems to be a serious effort to curb corruption, the government arrested and arraigned in court, people suspected of being involve in the NYS where Shs9 billion was siphoned out.

The suspects were taken to Directorate of Criminal Investigations headquarters for questioning before being arraigned in court.

Here is a list of some of the suspects who were later arragned in court. It is drawn from senior management at NYS, National Treasury and suppliers.

1. Mr Richard Dubai, NYS Director-General 2. Mr Sam Michuki 3, Mr David Kirui 5. Mr Ferdinard Matavo 6. Ms Keziah Mwangi, NYS 7. Mr Duba Galgalo 8. Mr Isaiah Adalo Chopia 9. Mr Peter Muchui 10. Mr Matano Odoyo, NYS 11.Mr James Thuita Nderitu, supplier 12. Ms Yvonne Wanjiku Ngugi, supplier 13. Mr Sammy Mbugua 14. Mr Timothy Kiplangat Rotich 15. Mr Wellanalo Mulupi, NYS 15. Ann Wanjiku Ngirita (Arrested in Naivasha) 16. Lilian Mbugua Omollo, Youth Affairs Principal Secretary Director of Public Prosecutions

Governor Patrick Njoroge Noordin Haji had said he has enough evidence to nail the 54 suspects set over the Sh9 billion NYS scandal.

He said his office has sealed all the loopholes that have led to the collapse of previous corruption cases in which several individuals accused of stealing billions in taxpayers’ money get acquitted for lack of evidence.

President Uhuru Kenyatta has also vowed to deal ‘firmly and decisively’ with all unethical people caught in the web of corruption.The President, reiterating his anti-graft message, said all Kenyans entrusted with responsibility must be ethical and ready to serve with a high sense of morality. “We are not going to tolerate unethical people.

People with responsibility must

be ready to serve and not to be served”, said the Head of State.

The Central Bank of Kenya (CBK) Governor Patrick Njoroge has issued a stern warning to banks flouting guidelines on large cash transactions and abetting corruption. Reacting to the ongoing probe at the National Youth Service (NYS) where KSh 9 billion allegedly disappeared, Njoroge said CBK was working closely with the investigative agencies to ascertain which banks were involved in the scam.

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FOCUS ON MCU

Ukamba now producing top grades of coffee

The establishment of a Sh100 million coffee milling plant in Ukambani has put a smile on the faces of thousands of farmers in the region. Before it was established, coffee growers in Makueni and Machakos counties had to bear the burden of transporting their coffee parchments to millers in Kiambu and Nairobi counties for milling. It was a process that led to the high cost of transport, losses and discouragement to farmers.

Lower eastern Coffee mill (LECOM) is so far, the most ambitious project of the Machakos Cooperative Union. It was a response to farmers need for cheaper, near and fair mill where they would get the true kind of coffee grade that they supplied. In this issue of Investment News, we feature the Union and the project.

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The establishment of a Sh100 million coffee

top grade such as AA, AB and PB unlike in the

milling plant in Ukambani has put a smile on the faces of thousands of farmers in the region. Before it was established, coffee growers in Makueni and Machakos counties had to bear the burden of transporting their coffee parchments to millers in Kiambu and Nairobi counties for milling. It was a process that led to the high cost of transport, losses and discouragement to farmers.

past when coffee from the region used to be graded as low as grade C and TT.

The plant has a capacity of milling 1.2 tonnes per hour, which is about 600bags a day. It has reduced transport costs from Sh200 per bag to Sh70 per bag.

Machakos Co-operative Union(MCU) chairman Patrick Katingima says grading has also improved to

Happy coffee farmers in Machakos

Top coffee growing areas in Ukambani are Kangundo, Kathiani, Matungulu and Machakos in Machakos county and Mbooni and Kaiti in Makueni County. The peak period for delivering coffee is in the months of August and September.

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The story and Vision of the Machakos Cooperative Union Machakos Cooperative Union (MCU) is an umbrella

60,000 individual members. We assist the

organization for 81 primary organizations spread

cooperatives and groups to access markets – both

across 15 sub counties in Machakos and Makueni

local and international. In doing so, we work with

counties. The original purpose behind the

partners to build capacity, improve production

establishment of the Union in the 1960s was to assist

and ensure quality to meet international

primary coffee farmers’ societies to grow and market

standards.

their coffee. Over the years the Union has grown and expanded its membership to include primary

The supreme authority of the union is the annual

producers in handicrafts and dairy sectors.

general meeting (AGM) which comprises of delegates elected from affiliate member co-

These primary organizations which comprise of

operative organizations and groups. The AGM

cooperatives and women groups are serving over

periodically elects the management board which

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oversees the day to day activities of the union and

MCU offers the following services to its affiliates:

delegates the same to the employees under the leadership of the CEO.



Marketing,

The Union is trading internationally under WFTO



Bookkeeping and accountancy,

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Insurance consultancy and advisory services,



Cooperative education and training for capacity

in marketing of handicrafts and has its coffee products under the following certifications; FLO, UTZ and CAFÉ

Linkages Primary cooperative and groups benefit from the Union’s links to international networks such as:



World Fair Trade which enforces adherence to a code of practice that includes fair payment

building, 

Lobbying and advocacy,



ICT application and support services,



Linkages and networking of development partners to our affiliates,

for products, accountability and transparency, care for the environment and no use of child

labour

 

Kenya Federation for Alternative Trade Women in Informal Employment: Globalizing and Organizing (WIEGO)



We Effect: Through the MCU, We Effect

targets women groups attached to Machakos Cooperative Union. So far they have established pre-schools to assist vulnerable children and allow their mothers more time to devote themselves to their businesses and develop as entrepreneurs The SCC-Vi Agroforestry is a special cooperation programme that endeavors to contribute towards poverty reduction in Lower Eastern.

Formation of village savings and loan associations

Cooperation for Fair Trade in Africa (Cofta) (KeFAT)







internal audit services,



merchandise stores,



agronomy services,



transport services,



value addition to affiliate products.

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Working together to break the chains of poverty

By Anthea Vigni

poor due to unfavourable climate and soil condition.

Statement from World Fair Trade Organization Poverty eradication in Kenya has always been a challenge. With 42% of the population living in extreme poverty, the size seems overwhelming to imagine. But there is one place in the country that continue to inspire the rest of the nation, and it is also the home of one of Kenya’s active Fair Trade organizations. It is the Machakos Cooperative Union (MCU).

It was established in 1964 as an umbrella organisation of producers in Machakos County involved in production of coffee, soap stone carvings, wood carvings, sisal weaving and jewellery accessories.

The co-operative is a source of inspiration.

Located 50 kilometers southeast of Nairobi, their most successful operation is coffee. On their website, the organisation published that their coffee production saw significant increase from 12 million tons in 2009 to 14 million in 2011 [2]. This increase is due largely to the co-op’s aggressive support to coffee farmers through trainings and subsidised prices of farm inputs.

Although the district is challenged with erratic climate pattern, these types of support enabled them to grow more coffee seedlings. At present, they work with 34 groups of coffee farmers.

Facing high rate of population growth and unemployment, the Machakos co-op expanded operation to include handicrafts. In addition to working with coffee farmers, they are also working with handicraft producers, especially women self-help groups. The handicrafts section grew when they began to export artisanal products, along with coffee, in 1987. Most of the members in this division come from municipalities where agricultural production is

Utilising local resources, the co-op encouraged handicrafts production as an alternative source of income for the communities. They also capitalised on traditional artisanal techniques to produce high-quality sisal and soapstones products. Today, the handicrafts section has grown and is currently working with mostly women groups, which comprise 4000 out of 6000 individual member artisans.

Machakos Co-operative Union seeks to improve the quality of life of their members, employees and costumers by supporting production, processing and marketing high quality products from their members. While taking care that their member got the necessary support to ensure good production outputs. They also have efficient marketing division that handles the trading of their products. Presently, the co-op exports their products to Europe and North America, as well in countries like Japan and Australia.

Fighting poverty may not be easy, but Machakos Co-operative Union had shown us it is possible and with success. Despite the unfavourable environmental condition in the county, they efficiently managed to maximise local and natural resources. Coupled with training and subsidies given to their members, production outputs increased, and thus sales.

It is notable that the organisation has strong Fair Trade values and principles that guided their practices. Their vision is clear and simple, and yet it guided them effectively to help communities in their district for more than 50 years.

We wish Machakos Co-operative Union more

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Coffee Milling: Strict Quality Control Sets Lecom Apart from Other Coffee Millers Although coffee milling is an unfamiliar process to most coffee farmers it is the key to whether they will become poor or rich from their labor. That is why the Machakos Cooperative Union The weigh bridge where coffee parchments arriving from coffee (MCU) organized its factories are weighed and issued with a weighbridge ticket. large number of member cooperatives to start the Lower Eastern Coffee Mill (Lecom) so that the farmers could reap maximum benefit from the crop. And today Lecom – which was launched in 2013 – is among the top millers in the country handling nearly 30,000 bags of coffee from its member cooperatives every year.

“We started low with about 5000 bags in 2013 but the growth has been phenomenal,” says the operations manager Josephat Ngyengya. “In 2014, we milled about

Pre-cleaner machine where all foreign particles are removed.

15,000 bags rising to 23,000 in 2015 and 28,000 in 2016. Our target is 30,000 tons per year."

It has been a long process, but the benefits from the mill have made coffee farmers in

Machakos and Makueni a happy lot in deed. Before the establishment of the mill, says Ngyengya,

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most of the coffee from farmers in Ukambani was classed in the C grade by dishonest millers. That meant that farmers were getting only a fraction of what they were supposed to get. And that is not the only problem that was draining farmers’ income. Ngyengya counts many others including inflated transport costs and coffee loss during the husking process where unscrupulous processors undervalued the amount of coffee delivered by the farmer, providing for coffee loss of even up to 30 per cent.

But what is coffee milling and how does it work to enrich or impoverish coffee farmers?

Before being exported, parchment coffee is processed in the following manner: Hulling machinery removes the

Catador machine for blowing dust from pre-cleaner. parchment layer from wet processed coffee. Hulling dry processed coffee refers to removing the entire dried husk of the dried cherries.

The mill is actually where coffee is processed. And this “process” is how, one way or another, Coffee the Fruit becomes Coffee the

Bean. At the Lecom factory, located in the industrial area of Machakos town, we were taken through the milling process by the

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Production Manager, Josephat Nzeki.

Here’s a rundown on the basic processes.

The process starts when lorries off load sacks of parchment coffee from the factories located around the coffee growing areas.

Parchment is coffee whose red skin has been removed. This is done at the coffee factory level. The parchment is weighed at the weigh bridge before it is taken to the parchment store. It is at this point where the expected milling loss is determined through a sample taken from each consignment to check for moisture content, diseased beans and other impurities. A farmer therefore knows in advance what they expect to get out of the milling process.

The milling process begins with the parchment being put into the feeding hopper where the pre-cleaner removes impurities such as

The weigh bridge where loaded vehicles arrive at the milling factory

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stones, metallic objects and papers. Only the coffee and husks go to the huller.

Hulling machinery removes the parchment layer from the coffee. During the hulling, a fan sucks the husks to the husk chamber and the beans go to oscillating screen to separate and return the unhusked coffee back to the huller. Bad beans are also removed.

Polishing is the next step where any silver skin that remains on the beans after hulling is removed by a machine.

The coffee is then graded according to size. Beans are sized by being passed through a series of screens. The larger the bean, the better the quality. This gives the six grades; AA, AB, PB, C, T and E. They are then sorted according to weight by using a gravity separator to separate heavy from light beans. The lighter coffee is removed because it affects the taste, ensuring that only the finest quality coffee beans are exported. The lighter coffee of grades AA, AB, PB and C are put together into a new grade called TT. Finally, beans are put into standard bags of 60 kilograms and labeled ready for the market.

Machine for polishing.

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Coffee roasting and tasting procedures

Josephat Ngyengya is the manager of the Lower Eastern coffee Mill (LECOM) and is a specialist in coffee quality control. In fact he is one of the few Kenyans who are Certified Q graders, a unique qualification for purchasing coffee, selecting roast profiles, production and processing methods, understanding coffee origins, and more. “It allows us to communicate objectively about quality throughout the entire coffee supply chain, enabling me to taste and grade coffee for specialist markets,� Ngyengya explains as he takes us through the strict quality control that coffee coming to Lecom goes through.

QUALITY CONTROL Quality control starts when parchment coffee arrives at the weigh bridge where it is given a weighbridge ticket which identifies it throughout the processing and marketing process. The parchment area is next stop from the weigh bridge where Ngyengya will take a sample of some 300 grams from each consignment for mini milling and coffee tasting. The process of mini milling and coffee

Lecom Operations Manager Mr. Josephat Ngyengya explains the quality control process.

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tasting will reveal all the details that a buyer needs to make sound purchase decisions. The details also help farmers to know how much care they are giving to their crop and what needs to be done to improve their incomes.

“During low seasons, we go out to advice farmers on how to get more from their coffee using this information”, Ngyengya says.

The sample taken will reveal among other things, the moisture content and the expected loss – or coffee recovery percentage. Ngyengya tells us that the ideal moisture content is 11% and is probably a good target for most coffee. At any rate, coffee with moisture content of above 12.5 percent is classified as poor quality, has poor taste and is likely to develop ungi and molds.

GRADING

Coffee from various societies being prepared for roasting According to Ngyengya, the average managed farm should produce approximately the following grades of coffee when passed through coffee grading screens: Coffee grade AA --- 20 percent Coffee grade AB ……60 per cent Coffee grade C…… 15 per cent. When mini milling is complete, a roasting sample is taken from the 300 grams and is roasted, ground and brewed for tasting. Roasting must be at 150 degrees centigrade. “If the temperatures are too cool the coffee spoils”.

Tasting will establish acidity, bitterness, sweetness, saltiness and sourness. It also establishes body and off-flavors. Acidity comes from the soil while the others come from the processing methods.

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Ngyengya emphasizes the importance of proper records in coffee processing. When a new consignment arrives at Lecom, it is weighed and given a weigh bridge ticket indicating the type of coffee, number of bags, weight and an outturn number all of which are necessary to identify the coffee.

When the sample is taken at the parchment area and is mini milled, the consignment is issued with a milling card which contains all the earlier information about the consignment and the findings of the quality control process. “The consignment should always be identifiable showing the date it arrived at the mill, from which factory, the results of milling process and the coffee tasting process. It is important for farmers to

Coffee roasting machine

be able to confirm that what they brought in is what they get at the end of the process.

The control process ends with the miller making what is called a milling statement that shows details such as the milling loss and recovery for the marketer. He also makes a catalogue with details of the coffee consignment for the buyer. “It is also important for the buyers to know what they are buying and from where,� says Ngyengya.

Delicious cup of coffee

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Business clinic Planning to start a business?

Here are the skills identified as the most important for you

If you have wanted to start a business, you will have asked yourself the following question: “How do I know if I have what it takes?” Here as some of the skills that wil tell you if you are ready for your own business.

get frustrated and upset by setbacks, you’ll struggle as an entrepreneur. Learning how to use stress to your benefit is essential.

1. The ability to manage money.

This is a big topic, because there’s no one right way to be productive that works for everyone. Learn about your peak energy times, your routines, and the productivity tools that work for you in order to create your own plan for success.

Very simply, if you can’t manage money, you can’t manage a business. Do you know where your money goes each month? Do you live off less than you earn? If the answer to these questions is no, you’ll struggle to manage a business budget as well.

2: The ability to relieve stress.

Stress is no laughing matter. If you allow yourself to

3. The ability to be productive.

4. The ability to make entrepreneur friends.

According to entrepreneur Jim Rohn, “You are the average of the five people you spend the most time with.” So who do you want to be? Improve your

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odds of success by finding entrepreneur friends who will be able to understand your struggles and give you much needed insight.

5 The ability to identify strengths and weaknesses.

As a business owner, you don’t need to be perfect at everything. You do, however, have to understand where you’re strong and where you’re weak.

Assessing this will inform everything from the business decisions you make, to the partners you bring on, and to the employees you hire.

6. The ability to hire effective people.

To be clear, without customers, you have no business. Make sure all of your pitches, products, and services are focused on actual customer needs.

If you don’t know what these are, research and ask questions so that you’re able to give great customer service.

10. The ability to close a sale.

Letting customers know you understand their pain is important, but asking for the sale is where many entrepreneurs get stuck. If you’re nervous about this step, try enrolling in a sales workshop to learn these much-needed skills.

11. The ability to spot new trends.

Speaking of hiring, this is easily one of the most important skills any entrepreneur could have.

Having great people on your team will give you access to new strengths, while also building a company culture that people want to be a part of. Hiring the right people is essential to get where you want to go.

Business moves fast, so you’ve got to have the ability to see changes coming in your industry.

Make it a point to keep up to date on new startups and the advances in technology that could be poised to disrupt your field.

7. The ability to train new staff.

12. The ability to deal with failure.

When you bring on someone new, a robust onboarding process will ensure that they know what to do and not do. Not only will this help keep your company moving the correct direction, it will increase the commitment level of good employees and give you grounds to follow up on misconduct.

No business venture is a straight line to success; knowing how to deal with ups and downs is essential. Remember that every successful person out there failed dozens of times before getting a win. Failure isn’t the end - it’s just a data point on the way to success.

8. The ability to manage staff.

13. The desire to improve your world.

Once you have the right people, you need to manage them well. Early on in your business’s growth, you’ll be everyone’s manager, so it pays to be effective. If you don’t already know how to manage, take the time to learn how to motivate, encourage, and develop your staff.

In the end, the best and most enduring motivation is to make a positive change in the world. When you focus your business and your success on that top priority, you’ll find yourself ready to weather any storm to meet the goal.

9. The ability to focus on your customers.

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Technology & Business Why Is Technology Important in Business?

Technology helps businesses in a number of ways that generally center on doing things bigger, better or faster than you could without technology. Different industries and companies rely on technology in different ways, but widespread uses include business communication, optimized production, inventory management and financial recordkeeping.

Business Communication Technology expands the reach and efficiency of many forms of internal and external business communication. Field sales representatives and technicians, for instance, no longer have to return to an office to receive assignments. Instead, they take calls or mobile messages while in the field, alerting them to

the next scheduled appointment. Business reps traveling for work can stay connected to the office and colleagues. E-mail enables mass distribution of messages to people across geographical boundaries.

Externally, technology enhances opportunities for marketing communication. Social media, email and mobile phones allow companies swifter and more interactive communication platforms relative to traditional, one-way media options.

Optimized Production No matter what your industry, business size or primary activities, technology allows opportunities to optimize production beyond what you could produce without it. Small companies can often compete with larger firms

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in operational efficiency, thanks to access to high-tech equipment and tools. Manufacturers constantly look to upgrade equipment to compete with industry leaders on production efficiency.

In a retail business, technology makes the process of selling to and servicing customers much more efficient as well. Scanning barcodes at a checkout is faster than finger-punching numbers in a cash register. Also, as items get scanned, companies capture important data for precise marketing.

Inventory Management Raw materials suppliers, manufacturers, wholesalers, retails and B2B providers all have inventory management processes. Technology is used to organize items systematically in a warehouse or storage room. Matching computer information to inventory storage spaces helps associates pull stock as quickly as possible. Companies can quickly compare inventory when it comes in the door to order sizes on the computer screen. Many inventory

processes are automated. Retailers, for instance, often use vendor managed inventory approaches where suppliers automatically send replenishment when alerted that stock is low at a store. Organized, efficient inventory control helps minimize inventory costs while meeting customer demand.

Financial Record-Keeping Companies small and large use advanced software programs to manage accounting and finance tasks, according to the U.S. Small Business Administration. In fact, companies often use programs that sync accounting with point-of-sale terminals and bookkeeping programs, such that each purchase or sale transaction is automatically captured in an accounting platform. Using technology to manage financial record-keeping minimizes manual processes, reduces costs and helps protect against human error

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Book Review Melinda Emerson’s Book “Fix Your Business” Offers a 90Day Plan to Remove Chaos Back in 2010, Melinda Emerson launched her book How to Become Your Own Boss. Since that time, Emerson has energized small business owners everywhere with her workshops, webinars and SmallBizChat format on Twitter.

Emerson is back with her second book, Fix Your Business: A 90 Day Plan to Get Back Your Life and Remove Chaos from Your Business. The book is a fitting followup to her first book, offering insights for businesses of every size and industry.

What Is Fix Your Business About?

Fix Your Business builds upon Emerson’s 12 Ps — the principles for running a successful business.

Each chapter is dedicated to a specific “P”, with suggestions planned for 90 day turn around.

At the end of each chapter is a set of action steps and expert interviews to reinforce the chapter topics. The ideas are meant to quickly guide the reader through typical upgrades needed in each aspect of your business.

The quick turn around is meant to address a sophomore slump many businesses face. After a good start, many business owners find themselves struggling to be time efficient, cash flow efficient and rested to make good decisions.

The book helps business owners reach those goals by establishing the processes to start producing money within the business. As Emerson mentions in the opening pages, you can’t stand still. “It’s really hard to stay where you are for much time without any change or growth. The world will change around you fast.”

What I Liked About Fix Your Business

One aspect I like about the book is how Emerson presents her perspective so readers can easily get to essential ideas and leverage them to reach the “next level” in their businesses. Part of this comes from Emerson’s experience as a business owner for 20 years, but it also comes from her having interviewed small business owners in her regular SmallBizChat events on Twitter.

Take Emerson’s comments on Perseverance in Chapter 12 where she provides straightforward advice on dealing with investors.

“If this is your first business then you don’t have a financial track record, which puts you in a beggar’s position. The investor you seek funding from has the power and may deploy an agreement that puts you at a disadvantage.”

Tip 6 of the chapter suggests options like growing your network and increasing sales when seeking to build investor interest.

Many authors add comments from a few experts to bolster their arguments, but Emerson’s choice of experts is what sets her apart. For example, Emerson draws from Stephanie Chandler, founder and CEO of the Nonfiction Author Association, for thoughts about creating the right business model. She also adds comments from such experts as Palo Alto Software founder and chairman Tim Berry, marketing luminary Jay Baer and productivity expert Laura Stack.

Action steps at the end of each chapter allow you to practically apply the book’s suggestions to your business.

28 Investment News

Health Dangers of common cold and remedies In Kenya, the common cold and other respiratory diseases like influenza, flu and coughs top insurance claims. .

These are the statistics insurance companies: In 2016, the top 11 firms paid out more than $36.1 million in claims for such diseases, up from $23.5 million the previous year.

About 40 per cent of the payouts was for antibiotics. A total of $74.01 million was paid out in medical claims in 2016, up from $63.25 million the previous year.

According to doctors the highest number of visits to hospitals is always for upper respiratory infections, which include throat infections like tonsillitis, and common colds.

Contrary to what many people have been told as children, wet hair can’t cause a cold. Neither can stepping into cold temperatures without a hat or earmuffs.

Colds are actually caused by cold viruses.

More than 200 viruses can cause the common cold.

Certain risk factors can increase your chances of contracting the cold virus and getting sick. These include: 

season



age



lack of sleep



stress



Smoking

While some risk factors are hard to control, others can be managed. Learn how to lower your chances of catching a cold and passing it onto others.

Seasons play a role

Investment News

The cold virus is more common in coldweather months, such as fall and winter, and rainy seasons. During these seasons, you’re more likely to spend a lot of time indoors. This puts you in closer proximity with other people, raising your risk of catching the cold virus and passing it onto others. To lower your risk of getting sick or making others sick, practice good hygiene. Wash your hands regularly. Cover over your mouth and nose when you cough or sneeze, using a tissue or the crook of your elbow.

Certain climates and seasonal conditions can also make cold symptoms worse. For example, dry air can dry out the mucous membranes of your nose and throat. This can exacerbate a stuffy nose and sore throat. Use a humidifier to add moisture in the air of your home or office.

Change the water daily and clean the machine regularly to avoid spreading bacteria, fungi, and irritants.

Children under the age of 6 are more likely to catch a common cold. That’s because their immune systems haven’t matured yet or developed resistance to many viruses. Young children tend to come into close contact with other kids who might be carrying viruses. They’re also less likely to wash their hands regularly, or cover their mouths and noses

when they cough or sneeze. As a result, cold viruses tend to spread more easily among young children.

To lower your child’s chances of getting sick or spreading the cold virus, teach them to: wash their hands regularly with soap and water

avoid sharing food, beverages, eating utensils, and lip balm with other people cover their mouths and noses when they cough or sneeze, using a tissue or the crook of their elbow.

Psychological stress Psychological stress also appears to raise your risk of developing a cold, according to researchers from Carnegie Mellon University. They suggest it affects how the stress hormone cortisol works. The hormone regulates inflammation in your body. When you’re under stress, cortisol may be less effective at tempering your body’s inflammatory response to the cold virus. This may cause you to develop symptoms.

Next issue: Cures for common cold

30 Investment News

Myths about women deflected One of the widely held myths is that women are better managers because they are honest. The gender equalization efforts are based heavily on this assumption.

Best Practices with Emma Muli

And there are good examples— British Margret Thatcher and former Liberian President Ellen Johnson Sirleaf. But by and large, we have seen extremely callous, extremely corrupt women. Grace Mugambe of Zimbabwe perhaps leads the pack from further afield.

In Kenya we are amazed by the amount of corruption that women heading government organizations have been involved in. Look at the National Youth Service. Millions of shillings are carted away and packed in lorries in broad day light. Can even a child in nursery school have no shame if they were given the responsibility to watch over such money? Yet the women walked out and go to look for other government jobs with straight faces.

Similar things are happening at the Youth Fund, the Kenyatta National Hospital and you could almost generalize for everywhere where there is woman. What is the problem?

My own view is that there is a lot of ignorance among women. Even when we get educated, our thinking remains rooted at the salon level.

Look at the associates of the women involved in corruption. Education has not raised their standard of thinking and human compassion.

Many women are proud to say there are poor

in mathematics. It is a myth that has held women behind and is contributing to the mass in the organizations they lead.

Think of a manager who doesn’t know how the organization makes money, what income it gets, what it spends and so on. Such a woman is likely to be awed by the billions of shillings that comes into their control and even to assume that taking away several millions will hardly be noticed.

A good manager must love dealing with mathematics and be able to spend time, not combing her hair at the salon, but studying the organizations accounts. How much money came into today? How ,much was spent? What for?

There used to be a myth that women managers are overwhelmed by family relations. But recently you have not heard a woman who was stealing with her relatives where real brothers, sisters, mothers or father. And neither they inlaws of any kind.

In the end, it comes to the appointing authorities. Are they competent to do their job?

Ignorant people will associate with more ignorant people.

Finally, the ball rests with us as Kenyans. What are the values we are using to guide our choice of leaders? The circle starts there.