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Investment News Business Opportunities Start Here INSIDE THIS ISSUE

August 2015



Nigerian billionaire Dangote


Publishers View……….. 4 Minerals are now pointing to the future of Kenya‘s economy The Last Word…… 30 What do the rest of the world think about Kenya. Is it reflecting the reality on the ground? Quick News…………5 Do not miss our current news coverage. Books and the Arts.24 We discuss the question of Indian contribution to Kenya‘s independence.

Now that Nigerian billionaire Dangote is a front runner in mineral exploitation in Kitui, it is important to estimate the influence he could have in Kitui, Ukambani and Kenya in General

Artist‘s impression of the Kenya-China Dubai city in Machakos

This is the question the world is asking everywhere the Chinese are investing. In Africa, the answer is even more urgently needed. And applied to Kenya where they are already investing in projects that say: We are here to stay! INVESTING IN MACHAKOS COUNTY

Machakos County has many advantages to become a key destination of investors. These include One of the castles in proximity to Nairobi, to major Machakos County. It communications facilities such as belonged to MacMil- the airport, Mombasa Road and lan. rail lines.


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Investment News Editor Muli wa Kyendo Contributors Uncle Sandu Marketing Charles Kavuu Sylvia Njuguna Investment News is published bimonthly by Investment News Ltd, P.O. Box 2025700100, GPO, Nairobi, Kenya, Tel: 0773991820 , 0721302418, Email: Editor @machakosoutlook.c o.ke ISSN 1814 The Editor welcomes contributions but takes no responsibility for loss or damage. All rights reserved Copyright: Investment News Ltd

Business opportunities start here! PUBLISHERS VIEW

The Future Can be Bright for Kenyans A few years ago, Kenya was thought of as one of the countries without minerals. In deed, the only minerals widely known was gold in Kakamega whose exploitation was poor. Today that image has changed. And as everyone knows, Kenya is teeming with mineral wealth. In Turkana, in Baringo, in Kitui— all originally marginalized by the colonial government after being classified as semi-desert, enormous wealth has been found deposited underground. Even up above, wealth has

been discovered in the form of wind. And the wind blows above the ground, sufficient to create enough electricity for Kenya. In this issue of Investment News, we look at one international investor Mr. Dangote and ask the question: How will his investment affect the politics of Kitui, Ukambani and Kenya, in general? So far, we have seen the negative impact made by Chinese investors— acerbating corruption, smuggling of wildlife products and an increase in racist investments. What will Nigerians bring along?

Killing African Traditional Industries Many Africans do not believe that the basis of ―modern‖ medicines is African. Most of the medicines that we buy in glittering packages have been ―stolen‖ from African traditional medicines. Many were taken to the USA by slaves from whom they were stolen by their ―masters‖ who were registered as the inventors. The effect has been to kill the

African medical industry. And worse, it has contributed to the general impression that the African has contributed nothing to human civilization. On page 14, we carry a story of the fight between the pharmaceuticals and the alternative medicine practitioners in the USA which throws some light on the unethical behaviors of companies. Now turn to page 14.

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Quick News International Coffee Day to Celebrate The International Coffee Organization (ICO), has announced that its 74 Member States and 27 coffee associations from around the world have joined forces to celebrate the first official International Coffee Day on 1 October 2015. International Coffee Day is a celebration of the coffee sector‘s diversity, quality and passion. It is an opportunity for coffee lovers to share their love of the beverage and support the millions of farmers whose livelihoods depend on the aromatic crop. An online campaign will be launched in August to spread the word about the October 1 date and encourage coffee lovers to participate in the celebrations. The campaign includes a website to feature events and other online campaigns dedicated to International Coffee Day.

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Coffee lovers around the world will have an opportunity to show solidarity with smallholder coffee farmers. Kenya is a major produce of quality coffee.

Looking Abroad for Kamba Language Teaching Jobs? Advertisement are out for Kamba language Teachers to “teach Kamba to motivated Kamba learning students in Nicaragua” in South America. You can contact Kamba learning students and meet for customized one to one Kamba lessons in Nicaragua. Alternatively start online Kamba lessons using SKYPE or Webcam. If you are a freelance Kamba language teacher, tutor or run your Kamba language school in Nicaragua, and looking for great students or Kamba teaching jobs, just create your professional profile and advertise yourself online.

Fighting NHIF: ‗The poor will pay only Sh300‘

President Uhuru Kenyatta and President Barack Obama

GES Ends with Great Promise

The much publicized Global Entrepreneurship Summit brought together an estimated 4,000 entrepreneurs. The summit, held at Gigiri in Nairobi, was opened by Kenya‘s President Uhuru Kenyatta and the American President Barack Obama. The two president underlined

the important role played by entrepreneurs in in changing communities and the world at large. Obama said he had brought along the best brains from the United States as well as US$1billion to assist entrepeneurs around the world. . Read a review of the summit and its implications for Kenya in the next issue of Investment News.

A group of MPs have told Nation Health Insurance Fund the highest amount that people should be charged if they don‘t have a steady monthly income is Sh300. ―The committee agrees that the rich must pay for the poor and the payment must be attractive to those who are paying to get more people into the scheme Kitui South MP Rachel Kaki Nyamai said on behalf of the MPs. The payment must be supported through actuarial studies so that we ensure it works,‖ she said ―We do not agree to charging volunteers Sh500; they will pay Sh300 and that is what we told NHIF,‖ Nyamai said.


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Quick News Ancient „Pharaoh‟s Oil‟ Takes America by Storm The alternative health community in the USA is abuzz about Black Cumin Seed being a "miracle" herb. Although the herbs many health benefits have been known since ancient times, it is only now the world is beginning to appreciate it.

tion throughout the body, a process that naturally removes biological waste products.* Nigellone and Thymoquinone are two volatile oils known to help relax muscle spasms and support open bronchial tubes for comfortable breathing.*

The rich golden oil derived from black cumin seed is mentioned in The Bible, in the Book of Isaiah. Also known as "Pharoah's Oil,"it was used by Egyptian Pharoahs to nourish the skin and aid in digestion. Ir was so treasured that King Tut was buried with a bottle of it. Now the alternative medicine world in the USA are producing the oil (pictured) where it creating a lot of excitement. The specific benefits of the

Essential Fatty Acids aid in the regulation of normal metabolism, help eliminate toxins, and may help support normal blood circulation and healthy liver function.* oil are derived from 5 major ingredients: Nigellin and Melathin help support healthy intestinal elimination. Sterols may help enhance healthy elimina-

Prostaglandin produces E1, which helps support the body's normal regulation of blood flow balance and hormonal balance.* (See our story on page 14)

Mabati Rolling Mills Starts Prize for Kiswahili A major new award, the Mabati-Cornell Kiswahili Prize for African Literature, has been established. Supported by Mabati Rolling Mills in Athi River and administered by the Cornell University in the USA, the prize recognizes excellent writing in African languages and encourages translation from, between and into Afri-

can languages. Renowned author Ngugi Wa Thiong’o, a Board member, said that the Mabati-Cornell prize is a “major intervention in the struggle for writing in African languages, for their place and visibility in the global sun of literary imagination. Prizes have generally been

used to drown African Literature in African languages under a Europhone flood. I hope that this prize becomes an invitation for other African languages to do the same and much more.” Over 140 million people speak Kiswahili in Eastern and Southern Africa.

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Three Valuable Lessons on Investing from Bible Parable An entrepreneur‘s interpretation of the great scripture and how it applies to you. By FRED MWEU I fell upon an interesting parable in the Bible that I wish to share with you. What I intend to impart is related to entrepreneurship, and it came from the Master himself. The subjects in this parable,

which you will find in the Bible book of Matthew Chapter 25 from verses 14 to 30, capture just the kind of audience that Investment News targets only you just have to replace ―servants‖ with ―workers‖ or

―employees‖, because at the time (back in time), servants were more or less, the ―employees‖ of the day. Jesus told his disciples this parable—a tale about Man travelling into a far country, who called ―his own servants, and delivered unto them his goods.‖ (Verse 14). Jesus goes on to say, ―…unto one he gave five talents, to Turn to page 29


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Power The

of Mobile Phone in Business

Technology has changed our lives. And it has profoundly done so in industry where the mobile phone is quickly taking the central role. Its ease of use and portability has ensured an increasing umber of users. Fewer and fewer people are accessing the internet through computers mobile phones that make it possible to surf the net and transact business on the go. Recruitment sector has been the most impacted world wide. And it is being predicated that within a few short years, the mobile will constitute the most important recruitment strategy. By not having a mobilefriendly web presence, you are reducing your potential to connect with top candidates and reducing your reach significantly. Here, we look at what is happening in recruitment industry worldwide.

We live in an increasingly mobile-centric world, with people spending more and more time on their mobiles each day Not surprisingly, therefore , a 2014 survey found that 89% of the employees and job seekers surveyed use a mobile device during their job search. Despite this, a survey found that, “more than one -quarter of large businesses don’t have a single portion of their job sites optimized for mobile use. More importantly, 80 percent don’t have career sites that are mobile-friendly.” So why exactly is mobile recruiting the way forward for agencies and how can you make your business mobile friendly? Have you checked to see if your website can be displayed properly on a mobile phone? If not, it may be a good idea to optimise it for use on mobile, so that users are able to view and navigate around the site correctly, as well as being able to search & apply for jobs directly from their phone. By optimising your website for use on mobile, it will tailor the content so that it fits the display area of the mobile phone being used to access it and ensure that it can be viewed properly no matter what device is being used. If you’re unsure about whether it’s worth the time and effort to make your website mobile friendly, you can find out how many people access your site via mobile through analytics sites such as Google Analytics. You may be surprised to see how high the figure is! An alternative option to altering your website for mobile use, is to create a dedicated mobile recruiting application for use on smart phone and other mobile devices. These can be downloaded from App Stores such as iTunes and have been specially designed for use on mobile. Mobile apps may be better suited for larger businesses with lots of job openings at one time due to cost and upkeep. International firms such as Nestle and PepsiCo are among those who have introduced mobile apps to manage their recruitment. These apps make it quicker and easier to browse and apply for jobs within the companies and in addition to the improved access to job information, these apps can also send out alerts to users when a new vacancy has been added.


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MINING IN KITUI What if Dangote invests billions? Aliko Dangote is a businessman based in in Lagos. He is the owner of the Dangote Group, which has operations in Nigeria and several other countries in West Africa. A wealthy supporter of erstwhile President Olusegun Obasanjo and the ruling People's Democratic Party (PDP), Dangote controls much of Nigeria's commodities

trade through his corporate and political connections. With an estimated current net worth of around US$17.1 billion, he was ranked by Forbes as one of the richest men in the world and the richest black person in the world ahead of Mohammed Al Amoudi ($9.0 billion) and ahead of Oprah Winfrey ($2.5 billion), Mo Ibrahim ($2.5 billion) and Patrice Motsepe of South Afri-

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In whatever it trades in, Dangote in a near monopoly in Nigeria. Dangote Quarries Company (DQC) will explore limestone resources in Kanziko area. Dangote says investing in the sector the project will ease cement shortage in the country.

ca ($2.4 billion). Now Dangote wants to set up the largest cement factory in Kitui, where, last year he put up a party for the County residents. But only a few people are asking what kind of change he would bring to Kitui—and to Kenya in general— if he controlled such huge investment?

Aliko Dangote is reputed to be a nonpartisan, detribalized investor who offers employment opportunities to elite graduates from different ethnic backgrounds. His companies have reduced the level of crime by engaging youths who are school leavers in the area of transportation, product packaging, security and others.

Dangote: A man of Superlatives Dangote Cement is a fully integrated cement company and has projects and operations in Nigeria and 14 other African countries; Dangote Cement's current total production capacity in Nigeria from its three existing cement plants namely Obajana (10.25MMTPA), Ibese (6.0MMTPA) and Gboko

(4.0MMTPA) is 2 0 . 2 5 M M T P A . The Obajana Cement Plant (OCP) located in Kogi State is reputed to be one of the single largest cement plants in the world with a combined capacity of 10.25MMTPA.

A fourth line which add 3.0MMTPA to the existing capacity will bring the total capacity of Obajana to 13.25MMTPA by 2015. Dangote Cement is also the biggest quoted company in West Africa and the only Nigerian company on the Forbes Global 2000 Comp


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Supporting the Future Makueni Youth are now appreciating that ‘Wealth is in the soil’ Wycliffe Kyalo Waema (pictured) is a young man of 23 years. But he is also a very serious farmer. When he completed his secondary education in 2009, he decided to stay home and do farming. “All my brothers had gone to Nairobi, leaving behind a good piece of land,“ he says. Due to lack of funds, he started planting French beans on only a quarter of an acre using a generator. Then he became a member of Kimwango Horticultural Farmers Association which enabled him to get seeds and advice on farm-

ing and marketing. It also enabled him to access loans.

kueni County. Like Kyalo, Mbai, now 60, was interested in farming but he had no capital. Unlike Kyalo, when he completed school, he went to Nairobi and found work.

Kamwango, which is supported by MESPT, requires all members to become members of Universal Traders Sacco so as to access loans for farming.

He raised some money from his employment, bought a generator to pump water and returned home.

Titus Mbai is the chairman of the Association which covers a sizeable area of Ma-

“I wanted to be a farmer, and with water now I was ready.” When he started farming, however, he realized that generators were very expensive to run. “I needed Shs4,500 every week for diesel alone.”

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plants sukuma, French beans and maize.

That is when he learned that he could get a loan to lay pipes and construct storage to get free flow water to his farm. In his farm which was lush with tall healthy maize plants nearly ready for harvesting, Mbai plants French beans, water melon, green grams, tomatoes, cabbages and passion. The association is encouraging the youth like Kyalo to take up farming. So far, more than a quarter of its mem-


Titus Mbai shows his free flow water irrigation in his flourishing maize farm (above) while Kyalo Waema takes a visitor through his French beans farm (Facing page) bers are youth. Kyalo’s is a success story that has influenced other youth. Before he started get-

ting loans, his income was only Shs10,000 a month. Now his monthly income is S hs1 20,000. He

“Water is very important for horticulture crop farming. Some crops such as water melons have demand when it is hot and there is no rain,” says Kyalo. He plans to increase his farm size from the current five acres to 10 acres. And he is hoping to influence more youth to realize that “wealth is in the soil”.


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How Medicine Firms Make Big Money at your Risk Only recently, the Catholic Church in Kenya was up in arms against an ―unethical‖ tetanus vaccine. But now doctors in the USA say, ‗Much of what the drug industry does fulfills the criteria for organized crime in U.S. law.‘ This articles shows how far these multinationals are willing to go to protect their incomes. The American Medical Association (AMA) is upping the fight to gain total control over the medical industry.

doctors. Through the AMA, the pharceutical multinantions hope to stop the spread and adoption of traditional medicines.

The fight is between the AMA and doctors who support effective ways of treating diseases which do not necessarily use manufactured medicine– the type commonly known as alternative medicine but which Kenyans refer to as traditional medicine or herbs.

One way is by expelling member doctors who support traditional medicines such as Dr. Oz. To this end, the AMA has proposed new "ethical and professional guidelines" for physicians that threaten to censor doctors who deviate from what the AMA deems as medical g o s p e l .

In the USA, the supporters of traditional medicine are exemplified by a physician Dr. Mehmet Oz who runs a popular TV show called The Dr. Oz Show who openly traditional medicine. Such support of traditional medicine could lead to diminished profits for pharmaceuticals and also for regular

A group of medical students joined by residents and fellows from the AMA recently introduced a proposal before the AMA's House of Delegates that outlines how physicians are to conduct themselves when speaking through mass media. Because they have the power

to influence millions of people when speaking on television and radio, physicians like Dr. Oz "cannot function under the same guidelines as a physician counseling individual patients," the group contends. So in order to maintain control of the conversation, the AMA is developing a new set of guidelines to govern what it has dubbed "mass medicine," disparagingly referring to people like Dr. Oz as "quacks" who will "no longer ... be able to benefit from a lack of specific standards and professional codes." And doctors who fail to abide by the new guidelines, which are technically just recommendations, could face discipline for allegedly "violating medical ethics in the media." "The AMA will create a doc-

Business opportunities start here! ument clarifying what disciplinary actions may be taken against a physician who uses the media unethically," reports the site Doctors in Oz, which is an obvious play on words referencing Dr. Oz. "There are avenues for redress available through the legal system, licensing boards, and the medical societies to name a few." E v e n t h o u g h the AMA represents as little as 17 percent of all practicing MDs - and this number continues to decrease - the organization seems to think that it deserves full authority over what doctors say and how they advise the public on the latest food and medicine science. And it spends a pretty penny to maintain this medical monopoly, shelling out nearly $20 million annually to lobby Congress to do its bidding. "Keep in mind that the AMA is not the voice of the medical profession," warns the Alliance for Natural Health USA (ANH-USA), a health freedom advocacy group that is standing up in defense of medical free s p e e c h . "Its membership has slipped to the point where it represents only 17 percent of MDs, and many of those are free memberships given to medical students, yet it re-

mains the fifth most powerful special interest in USA. This gives it the clout to influence Medicare prices, make recommendations that shape national policy, and rake in about $218.8 million a year from its government-granted CPT medical code monopoly." What the AMA is attempting to do here represents nothing short of medical tyranny. One of the resolution's authors, a medical student from the University of Rochester, actually referred to the AMA in the media as "organized medicine," which ironically sounds a whole lot like organized crime. How can this membership-based organization, which holds no actual legal authority over the medical profession, get away with trying to assume c o n t r o l o v e r what doctors say and do in t h e m e d i a ? The answer to this question is that the AMA operates much like the mafia, backed by an extensive network of crony allies in the pharmaceutical and vaccine industries. AMA member doctors are notorious for accepting payouts from drug reps (sales staff) to push the latest pills and jabs on patients, even when safer, more natural, alternatives

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This is part of what got Dr. Oz in so much trouble with the medical cartels - he openly talks about natural remedies on his show and during media interviews, and isn't afraid to call out industry kingpins like Monsanto for poisoning the planet and the food supply with deadly chemicals like Roundup (glyphosate). So, to silence him and any others who might try to follow in his footsteps, the AMA is now playing hardball. "Much of what the drug industry does fulfills the criteria for organized crime in U.S. law," says Dr. Peter Gotzsche, director of the Nordic Cochrane Center in Copenhagen, and author of the book Deadly Medicines and Organized Crime: How Big Pharma has Corrupted Healthcare. "And they behave in many ways like the mafia does, they corrupt everyone they can corrupt, they have bought every type of person, even including ministers of health in some countries ... The drug industry buys the professors first, then chiefs of departments, then other chief physicians a n d s o o n . . . "


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The debate still rages on about the Chinese investing i

Is China empowering or exploiting Africa? In Machakos, China has planned a Shs65 billion mega city styled as a Chinese-controlled economic zone to compete with Dubai to provide over 200,000 jobs. Going by their practice of bringing along even the sweepers, Kenyans have a good reason to wonder whether Athi River will not become another Chinese colony and what the future will eventually be like. Many are already asking: How will it sit in relation to other proposed cities—Machakos for infrastrucCity and Konza City? ture projects – This analysis gives you to Africa and the world view of Chinese $107 billion-ainvesting in Africa. year bilateral China is today Africa‘s third largest trading partner and second-largest export destination. And while some argue that it is using a neocolonial approach, others see it as an alternative to several Western condition overloaded aid. But the question is still in the air: Is China empowering or exploiting without concern, opportunities in Africa? In the years 2002 to 2007, China offered over $33 billion of go v e r nme n t sponsored aid – over half

Top: Arti impressi Chinese Left: Art impressi Machako

Right: Ar impressi Konza C

trade, quadrupled between 2000 and 2008. The three main areas of trade are: primary resources from Africa to China, cheap manufactured goods and foreign Domestic Investments ( FDI) from China to Africa. In FDIs, China has ventured into new investment opportunities such as land acquisition and outsourcing of farm production. By 2009 almost one million Chinese farmers were working in Africa. Led by its two largest econo-

mies, South Africa and Nigeria, Africa is probably one of the last major regions on earth that remain unexplored, as shown in The Plundered Planet by Paul Collier. It is supposed that what is actually under the soil in the average square kilometre of Africa is at least twice as valuable as what is known to be still available in the western countries.

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in Africa even as it remains a key partner economies are in constant need for commodities, not only for new channels of oil and mineral resources, but also to mitigate their foodsecurity concerns, and gain a strategic position in the continent. Moreover, Africa will be soon among the last remaining low-wage regions. The effect of this will be to move good production activities to the continent where the returns on investments will remain higher than anywhere.

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Clearly, there will be a big wave of resource discoveries and Africa and the continent‘s commodity exports will be five times their present level, ending up in a phase of rapid growth. Since 2004 economic growth across Africa has increased by an average of 6% annually, while poverty has substantially decreased. This is contrasted with the fact that Asian

Three main reasons have let China succeed in Africa. Firstly, its credibility, gained since it shares with the latter a common experience as a developing country. Africans see in China a people who have overcome oppression to become one of the richest countries within a few decades. Second China‘s businesslike approach to development and focus on infrastructure projects means hope for the Africans. Thirdly, Chinese aid generally focuses on development projects, aimed at satisfy immediate needs, rather

than long-term investments typically taken into more consideration by Western countries. The fourth reason is China‘s broad-based interests: China is involved in almost every sector, with engagement growing not only in sectors and geographies but also in a broader strategic commitment. The flip-side of Chinese investment in African is its apparent over concern with its own needs. In many African countries, China is seen as supporter of dictatorial and oppressive governments and corruption and illegal trade. An example is Libya where it continued to support the regime of Muamar Khadafi even when it was obvious that the regime had lost touch with the ordinary Libyan. In Uganda, Rwanda and Ethiopia the Chinese have invested heavily although these are ―hesitant democracies.‖ Secondly, Chinese often rely on their own labor, hiring Chinese workers rather than local ones, and using Chinese materials, thus making their projects of little benefit to African communities and industries. .


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Business opportunities start It is a major supplier of the product to the manufacturers of Coca Cola, Pepsi Cola and Seven-Up in Nigeria.

In Migeria, the Dangote Group has nationwide staff strength of 22,000, which clearly puts him among the most significant employers. One analyst says, ―It may possibly not be a wild assumption to say that all Nigerians have heard of his name due to the impact of his businesses. His goods are practically in most homes across the country. People who may not use his products might have passed a few of his trailers by the way.‖ Some statistics here will underline this impact: The Dangote Group imports 400,000 metric tonnes of sugar annually which makes up about 70 % of the total requirements of the nation.

It imports 200,000 metric tonnes of rice annually just as the company imports tonnes of cement and fertilizer and building materials. Dangote Group also imports fish and owns three big fishing trawlers chartered for fishing with a 5,000 MT capacity. The group exports cotton, cocoa, cashew nuts, sesame seed, ginger and gum Arabic to several countries globally. A vehicle leasing unit with over 100 fully airconditioned commuter buses, is also part of the Dangote Group. It is also into real estate with luxury flats and high rise complexes in Ikoyi, Victoria Island, Abuja and Kano. Dan-

gote Foundation is the philanthropic arm of the group where yearly he spends millions for worthy causes such as contributions to educational and healthcare institutions, sinking of boreholes and giving of scholarships. In all, Dangote is into exporting, importing, manufacturing, real-estate and philanthropy. All of these are combined together to form what is known as the Dangote Group. At the helm of its affairs as president and CEO is the ―humble person called Aliko Dangote.‖ Born in Kano, his grand father, the late Alhaji Sanusi Dantata provided him with a small capital to start his own business, as was the practice then. He thus started business in Kano in 1977 trading in commodities and also building supplies. Alhaji Aliko Dangote moved to Lagos in June 1977 and persisted in trading cement and commodities. Encouraged by tremendous success and increase in business activities, he incorporated

Business opportunities start here! two companies in 1981. These as well as others that followed now make up the conglomerate known as The Dangote Group. Aliko Dangote is alo reputed to be one of the few Africans who had not looted their countries and stashed billions of dollars in foreign bank accounts. Of this, Dangote says, ――If you give me today $5 billion, I will not invest any abroad, I will invest everything here in Nigeria. Let

us put heads together and work.‖ His stories evoke a lot of positive response in Nigeria . So what do the ordinary Nigerians say of him? Here is a sampling: Aliko Dangote is a man of inspiration, a man who has risen above scholars, politicians fake pastors and thieves, he is my mentor. I pray that God‘s continues to bless and guide him. Kudos to Alh. Aliko Dangote, an icon in Ni-

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geria economy. Your story always gives hope that with hard work and perseverance, anybody who dream of becoming great can make it. Longlife and more grease to your elbow with little effort and much result its good to invest in our country rather than outside because there is unemployment in the here. Please graduates don't wait for the government to give you work. Learn from Dangote. Employ yourselves.


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Cooperatives on the Move

Taifa Sacco Expands to Nairobi ‗It has always been our dream‘ Taifa sacco wasn‘t confortable without a presence in Nairobi. ―We have to be at the centre of financial powerhouse of East Africa,‖ its General Manager, Mr Samuel Ngugi says. ―The sacco has gained value, it has improved its image by moving to Nairobi.‖

To take on Nairobi, the sacco has established an elaborate ICT management sys-

tem, rolled out M-Taifa mobile banking and interlinked its branches. It also

The Nyeri-based sacco started off as Murata Sacco Society and was registered in 1997 as a farmers cooperative. But it wasn‘t happy to operate in an enclave. It had a big ambition—to improve the lives of its members ―in Kenya and other parts of the world.‖ But conditions of cooperatives were such that it confined itself to its registered area of operation. Now, with the change of laws of cooperative, the sacco is ready to take on the world. ―We are strategically ready (to open a branch in Nairobi). It‘s a dream come true.,‖

General Manager Mr. Samuel Ngugi: “We have what it takes to achieve that dream.”

Business opportunities start here! specially trained its staff to serve the new branch in the capital city. Recently the sacco celebrated its 40th anniversary and rebranded as Taifa Sacco to give it a national image that allows it to operate all over the country. Why does the sacco want so desperately to be in Nairobi? Apart from the fact that Nairobi is the business hub of Eastern Africa, Taifa Sacco has many customers in Nairobi, according to the General Manager. ―We have many customers in Nairobi who operate ac-

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counts in various Taifa Sacco branches. ―They are happy that they will no longer be visiting branches for financial services that require them to travel to the branches. We are now taking the services right to their door steps. We shall engage in intensive customer recruitment exercises to win many more customers.‖ The sacco has branches in Nyeri, Nyandarua and Laikipia counties. Following closely after the Nairobi branch, the sacco will open a branch in Nakuru. The




Mr. G.M. Riitho says, ― As we move on, we urge all players to embrace the bigger picture and come together to take to the highest levels of performance and service delivery. ―We are thinking big, and focusing on the future with confidence.‖ And Mr. Ngugi says ―We shall continue sharing our dreams and aspirations of our members. It is our dream to become one of the largest most successful and well run saccos in Kenya and possibly in Africa. We have what it takes to achieve that dream.‖

Wecome to MCU Brand of Coffee Machakos Cooperative Union - the umbrella organization for coffee farmers in Machakos and Makueni counties - is pleased to announce that it will launch is brand of coffee soon. Coffee is a major cash crop in Machakos and Makueni counties, and therefore the Union is working hard to add value to what farmers produce. Plans are already at an advanced stage for roasting, packaging and selling our own branded coffee, both locally and globally. As the CEO Mr. Martin Malila says, ―The cooperative mood in this region is full of excitement following the installation of the mill.‖ With the help of the Union, the Lower Eastern

Coffee Mill, which is owned by members of the Union, individuals and corporates, has installed a coffee milling plant in Machakos town in order to help coffee farmers add more value to their coffee. One of the important things the mill has done is to reduce the distance farmers‘ travel to have their coffee milled. Shorter distance reduces costs and wastage that occurs in travel. Secondly, farmers are milling their coffee at rates lower than those charged by any other miller in Kenya while at the same time eliminating wastage and thefts that occur in milling. In their own milling plant, farmers are sure to get the same amount of coffee as they brought for milling.


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Review of Investment Opportunities

In Machakos County Unveiling its programs and investment opportunities recently was the Machakos County. The opportunities were contained in the Machakos Vision 2020 Strategic Plan for 2015 – 2020. The County outlines seven strategic goals that the County will pursue in the plan-period. There are improved health, Food security and nutrition, Water and sanitation, Enhancement of security, Promotion of Education, Development of youth, sports and recreation facilities, and Identification and support of vulnerable groups.

And electricity access is only 17 per cent. These are some of the areas that spell great investment opportunities. Emphasis in the Kenya is being laid on alternative sources of energy because of the unreliability of water as a source of power. Solar power and wind are some alternatives that investors can explore, with high returns if successful.

Tourism The plan says, ―The beautiful hilly scenery of the County of Machakos is perfect for tourism related activities such as camping, hiking safaris, ecotourism and cultural tourism, dance and music festivals among many more.‖ Machakos County has a wealth of creative tradi-

With a population of nearly 1.2 million, Machakos County has a literacy rate of 88 per cent. Some 76 per cent aged below 18 years attend school. Energy supply When it comes to infrastructure, paved roads cover only 7 per cent while roads classified as good cover 27 per cent of the County‘s road network.

Lord Macmillan building at the foot of scenic Kilimambogo (Kyanzavi) Hill was the expansive home of a flamboyant American in the colonial period. It is among the things upon which tourism can be built.

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tions and cultural industries. World famous wood carvers have their home in Wamunyu in Machakos County where the industry was started by Mutisya wa Munge. Syondo traditional baskets and a myriad other traditional crafts trace their home to Ukambani, of which Machakos is a part. Dances like kilumi are dramatic and are famed for their therapeutic qualities. In deed, kilumi is like meditation which has created enormous wealth for Asian countries including India. Ndanu Musau is one of the many researchers on Kumi. In her research The religious significance of kilumi rituals,songs and dances among the Akamba of Kitui district (Kenyatta University library) she says, ―... kilumi rituals and dances fall into four main groups, namely: ( 1) Worship -k-i l.-u-mi (2 ) Therapeutic kilumi ( 3 ) Cleansing kilumi (4) Initiation kilumi.‖ Yoga falls into similar categories, but it is the therapeutic aspects that are empahised for the international community. Similarly, kilumi should be organized to serve a similar purpose.

Kilumi can bring wealth to Machakos County just as Yoga has done for India, but we need investors to modern-

larized for national entertainment during the era of President Mzee Jomo Kenyatta and are well-known for the rhythmic drumming. All these can form a basis for a modernized entertainment, therapy and keep fit exercises which can attract both local and international tourist. They can

also be exported abroad to earn investors greater incomes. The Machakos government has achieved great success in creating an environment in which these industries can flourish to being great returns for investors.

The Machakos People‘s Park, located at the foot of the internationally famous Kapiti plains, is one of these enabling government investments. Heavy promotion by the government and sheer fun and freedom offered by the park has made it a leading choice for many entertainKilumi is one of the tradi- Wide famous wood carving: They offer ment events around tional Kamba dances popu- excellent investment opportunities for exporters

Turn to page 26


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Books and Culture

The Indian Question in Kenya’s Independence Struggle Answered Review of the book: Brown Man, Black Country. Author: J.M. Nazareth

Pages: 540 Publisher: Tidings Publications, India

If you want a good example of a book which has made no impact because of poor editing, then you should look up J.M. Nazareth's Brown Man Black Country. The title starts the series of inept editorial mistakes. Surely the title Brown Man, Black Country is hardly creative at all. Were there no women among the brown men? And which country is black? I am not being flippant, but underlining the fact that the editors of this otherwise very informative book didn't try at all. The book is one of the few that detail Asian contribution to Kenya's freedom struggle. The author Jon Maximian Nazareth (better known as J.M. Nazareth)

came a Puisine Judge.


A man imbued with great political ambition, Nazareth became the president of the East African Indian National Congress in 1950. He also headed the Law Society of Kenya in 1954, was elected member of the Legislative Council (better known as Legco) for Western Electoral Area in 1956 and became the president of the Gandhi Memorial Academy at the University of Nairobi. ..... :

lots of information with excerpts of the Hanzard, his own letters and even newspaper cuttings as proof for the audacity of his narrative.

In these capacities, Mr. Nazareth was able to witness or even take part in some of major political issues that today we are still struggling to resolve. And he gives

was born in Kenya—in fact NaiJomo Kenyatta (left) and Tom robi—in 1908. After studying Mboya; They refused to honor law in India, Nazareth returned an agreement to nominate JM to Kenya in 1934 where he be- Nazareth an MP in exchange for Indian support against White

He interacted very closely with the political stalwarts of the independence era such as Mzee Jomo Kenyatta, Tom Mboya and Julius Cikonyo Kiano with whom he was, as he says, on first-name terms. Indian Congress and African Aspirations At independence in 1963, his Indian Congress had identified itself with the aspiration of the Africans. In one resolution, the Congress said, "That a drive be launched immediately to encourage large scale enrolment into the ranks of Kanu and active support of Kanu and active par-

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ticipation in its work by the Indian community so as to make Kanu a strong and f u 11 y representative organization." Indians were also to help fund Kanu. When Tom Mboya learned of this he wrote a letter to Nazareth to express his gratitude which started with, "Dear J.M" and ended with "Yours sincerely, Tom." And Nazareth wrote back to Tom Mboya with a letter that started with. "Dear Tom." and went ahead to request for Kanu receipt books to "hasten the recruitment of Indians." Then things started to happen. While waiting for the letter, prominent members of the Congress were deported, starting a campaign to reverse the deportation and scattering Indian support tor the Kenyatta Government. White Highlands and Indian Land Question Mr. Nazareth. starts chronicling the Indian role in Kenya politics almost from the start. As early as 1902. Whites in Kenya had formed what they called the Colonialists Association "to save the Highlands for White settlement." The Highlands, latter known as White Highlands, according to the Whites lay between Kiu (beyond Machakos Town on the way to Mombasa) and Fort Ternan in Kericho. Land in these areas was reserved for Whites only. Indians were

barred from owning any land in any part of the country. "The Land Board in 1907 resolved against allowing Indians to take any government land." These two decisions—to reserve the White Highlands tor Whites and exclude Indians from land ownerships started the land campaigns that we arc still involved in. The Indians stood with the Africans against the Whites. This land problems is now baptized "land clashes/' and involves local communities facing off each other with some taking the role of the Whites and others the role of the Africans. What Churchill Said of 1906 Kenya The famous British Prime Minister, Winston Churchill visited Kenya as the British Undersecretary of State in I906 and reported that. "Every Whiteman in Nairobi is a politician, and most of them are leading parties." That's exactly the situation as it is today. Some people say that we have more than 100 registered and unregistered parties some are "pocket parties" which although they have been registered have only the man or woman who registered them as the members. That's the best part of it- that you keep your party in the pocket to scare politicians and negotiate Government jobs. The worst is when these parties become tribal like happened in the last General elections. This

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problem too, we bequeathed from the White colonialists. Tom Mboya ‘Lies’ Dim Indian Support In addition to these, Mr Nazareth has personal stories which may explain the Asian attitudes towards indigenous Kenyans. For example, he tells the story of how he was persuaded to stay away from active politics so that he could be nominated as an MP or to any other equivalent position by the then powerful cabinet minister. Tom Mboya. However when the time came for the nomination, nothing was forthcoming. He was naturally deeply hurt and begun considering leaving Kenya tor good. "Such hopes as I had of finding African leaders prepared to work towards such ends (of including Indians in the government) and whom I could assist perished in the second half of 1975, in particular the government reaction to the report of the parliamentary select committee on the murder of J.M. Kariuki and the detention of Deputy Speaker J.M. Seroney and a member of parliament Martin Shikuku, events considered by some quarters to be in connection with proceeding in parliament." Finally, he resolved to stay. "And so, born in Kenya, 1 hope to continue to live in Kenya and to die in Kenya." Eventually, of course, Nazareth, left Kenya for India.


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Investing in Machakos From page 23 the country.

a few years, the entire Kapiti According to government plains formerly occupied by statistics, more than 5,000 European farms will be covpeople visit the park every ered with giant estates to serve the needs of expanding weekend. Nairobi population. The Machakos Stadium, which was renovated to in- The plains also offer opporternational standards, has tunities for investments that hosted many local and in- require large flat spaces such as hospitals and educaternational events. tional institutions. Already The net effect of these stra- there are a number of unitegic investments has been versities and secondary the pulling into Machakos schools located in the Counof other events such as the ty which target the middle motor and cycling rallies as class population of Nairobi well as flurry of media at- City. tention Its nearness to Nairobi couReal Estate and Industry pled with security, has in Perhaps this is the most ob- deed helped in this regard. vious opportunity for inves- The Machakos County Govtors. Machakos County of- ernment is working hard to fers large flat and empty maintain and improve the spaces for real estate and investment environment for industrial investments. In real estate investors. deed many real estate developers are already taking Among the top priorities outadvantage of this and giant lined in its Strategic Plan is estates are coming up in fast tracking issuance of title Athi River all the way to deeds, increasing coverage of street lights in towns and beyond Kangundo road. trade centres and installaPredictions are that within tion of CCTV surveillance

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

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

camera and policing Other Investment Opportunities. Other investment opportunities include water and sanitation, agriculture and health. The County Government has been active in providing health services especially targeting women, but there is still a wide room for investors. In deed, several private hospitals have invested heavily in the County. Investors interested in farming will join a growing number of large scale farmers, especially flower farmers. Perishable farm products that need to take advantage of quick, and low cost transport to national and international markets will find the County most appropriate investment destination because of its proximity to the Jomo Kenyattta International Airport. They can also take advantage of the Mombasa Road and the railway line which traverse the County to reach markets in outlying cities and town such as Mombasa, Kisumu and Nakuru.

duction among others. SASOLis headquartered in Kitui town.

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Keep Your Hands on Your Wallet Even as You Cheer Up in these Crowds After losing a couple of items to conmen at the Masaku 7s rugby tournament, I think I am qualified to join other journalists in saying that the tournament is anything else but a sports event. At the end of the day, no one knew – or was even interested to know – which team won or lost. The Masaku 7‘s rugby tournament means different things to different people. While one man could easily have spent more than Ksh. 100,000 in hard-earned money just to have the time of his life, another man easily made the same Ksh.100, 000 during the same event through thieving. Conmen exist everywhere on the planet. In such big events, they will always show up in large numbers, regardless of the location or type of event. Though times change and technology revo-

lutionizes the scams and ripoff games, the rules and tricks of handling such people will more or less stay the same. Being cautions and always considerably suspicious of the next man will usually be of help; but does not guarantee the safety of your money and property.

your wallet and phone are in his pocket. He is obviously more focused on meeting his daily robbery goals. Most people know of the New Year festivals where phones and wallets are snatched just when the year is seconds old and the crowd is madly jubilated.

The crowd Here are some popular ways thieves have been making big The thief knows that your bankrolls out of the unsus- primary concern when you‘re in a crowd is getting pecting public. through. Your hands are The hype moment rarely anywhere close to The well-trained conman has your pockets and your a good idea of how the human mind is much further. mind works. He knows that That‘s the moment you the best time to make his won‘t even feel his hands in move is when your mind is your pockets as everyone is distracted by the hype of the also trying to push party. In a match, this could through. You will only realbe when the teams score and ize you got robbed minutes you‘re all up celebrating. He‘ll after you‘re out of the be celebrating with you all crowd. but at the same time, his The street hustlers hand is in your pocket. By the time you are done clapping, These have considerably


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faded off the scene but few cases still get reported. These ones lack tact and will simply rob you in broad daylight or in the dark night. Especially when you‘re all alone, they will bank on your fear. They‘ll usually start off by demanding for some money to buy marijuana or cigarettes and once you show them how rich you are, they can even get violent. They‘ll usually move around the town as a group and can be identified by their dressing mode. They could have a black or brown trench coat with lots of pockets to store the ―fruits of their labor‖, or just a hooded jumper to conceal their identity. Usually, they don‘t have much worry as they‘ll take some hard drugs before reporting to their hustling stations. The fake officer Known more commonly in the city as ‗kanju‘, these will come and attack young boys in public places. Normally, there are two uniformed men without uniform and will show up in the park at odd hours or in the streets when you break simple rules. They will threaten to have you arrested and, just to make their game stronger, could even hand cuff you

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and seemingly lead you to a police station. This can‘t follow through so they‘ll ask for a bribe and if you become too smart for them, they‘ll quit playing around and simply rob you honestly. The list is virtually endless. In events, this is a simple rule to go by: Leave your expensive property at home. A flashy watch could get your wrist cut off and a pure gold chain could easily put you on your deathbed the following day. The more expensive you look, the easier it is to be targeted by robbers. Why would they go for less when they could get more anyway? Carry just sufficient money well separated in different pockets just in case pick pockets

catch up with you. Also, going out with reliable friends is helpful. When confronted by the street gangs or single hustlers, don‘t be quick to show fear. A little fear makes their work easier and they wouldn‘t mind letting you go safely if you give them everything you have. With that said, know when to give in. Some of these people are already high on hard drugs when they‘re on the streets and will easily murder a man who makes their job harder. With strangers, trust your instincts. Generally, a thief would rarely ever grow fat or have a smooth-looking face. They will often have a rough expression that‘s never relaxed as they expect to meet someone who might

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Lessons of Parable

in the same area, field, occupation etc (the fingers are not equal things).

We are then told that, ―…he another two, and to another that had received the five From page 7 talents went and traded with the same and made one;‖ (verse 15). them other five talLike those servants in that ents.‖ (Verse 16). So did the part of scripture, we all one to whom two talents come endowed with one or were given, for he made another ―talent‖ but whether other two. But the one who we discover that is another was given one talent, ―… matter entirely. Another is went and dug in the earth, to know that one may have and hid his master‘s monthe talent and not put it to ey.‖ (Verse 18). And this is good use Many times we the crux of the matter. stray from our talent to do other things for many rea- Money works very little in sons, ranging from what our storage. Even in the modern parents want, peer pres- economy, if you keep your sure, available space for an- money in the bank, you will other course of study after not profit much. You should failing to meet the cut-off trade with your money. Conmark for a desired course of sider the entrepreneurs who study, or the profitability of multiply their money. As an adventuring into a career employee, you cannot multiply your money. This is the associated with the talent. great lesson Jesus is teachSome find their way back, ing. Trade with your money. like many doctors I know who are doing everything Again he is teaching that else but that which they there is no amount too small spent an average of six t invest. The money with years studying in medical one talent could have made money, but he chose not to. school for. He chose to complain. So Boss gave the talents to the servants, ―…to every See how the servants with man according to his sever- five and two ―talents‖ made al ability; and straightway something off the bit they took his journey.‖ (Verse were allocated, while the 15). Some people refer to one allocated a talent, probtalent as gifts and need I ably felt the little he had stress anymore that we all couldn‘t be invested. aren‘t equally gifted, even The master soon returned

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and was full of praises for the servants who had ―traded‖ with the talents they had been given saying to both of them- ―… Well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy master.‖ (Verse 21 and 23). To the servant whom he gave a talent to, he had nothing but harsh words, describing him as, ―… wicked and slothful servant, …thou oughtest therefore to have put my money to the exchangers, and then at my coming I should have received mine own with usury.‖ (Verses 26 to 27). In his fury, the master ordered that the talent with the erring servant be collected and given to the one who had ten talents., ―for those that are given he shall have abundance but from him that hath not it shall be taken away even that which he hath.‖ (Verse 29) The secret Jesus is stating is that the rich will continue getting richer, and the poor getting poorer unless we learn to recognize opportunities and invest in our talents.


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What others are saying about Kenya and Kenyans This time I'll take a break and listen to what others are saying online about visiting and trading in Kenya. I want you to ask yourself if these are genuine answers (or even genuine portrayal of Kenyans) Is the picture being painted of Kenyans flattering? QUESTION: I am traveling to Kenya in September. Several years ago, I read somewhere that the native Africans really like to receive new T -shirts with American type logos printed on them as "gifts". Is this still the case? Also, I understand that one can sometimes "trade" for handmade objects such as spears or crafts etc. Are there specific western things that the locals particularly like that would be good for trading? Is it better to refrain from spoiling the culture with such things as logo shirts, etc.? Thanks for your advice and opinions. REPLY 1: Children will ask you for pens and bonbons (candy). They are also very glad with the soaps, shampoos etc. that your hotel provides you with. Trading for handmade objects is indeed very

common. You pay partly in money, partly in western objects like T-shirts, baseball caps, sports shoes, branded socks, etc. These things do not have to be new (though clean of course). You will get lots of addresses everywhere you come and people will ask you to send them things from your country. I however doubt that these things will ever reach the people they are meant for. Kenya is great, were there last September and we left a piece of heart there. REPLY 2: I think it really depends on where you're going. We were in Kenya and Tanzania last month - people in the outlying areas were more amiable to exchanging gifts, but in the city - Mombasa, Nairobi they want the cold hard cash. Those that would exchange for something in the city generally wanted money as well. Check prices in your hotel gift shop first and bargain accordingly. While we did bring some pens -Bic ballpoints for the kids, there is also the theory that Westerners shouldn't constantly give stuff away because it promotes a begging mentality among the chil-

dren. Too late in most cases... You can e-mail me if you want some more info. REPLY 3: We were in Kenya and Tanzania January 2009. I too had heard about trading US objects, so brought lots of pens, pencils, baseball caps, ribbon, etc. I was severely scolded by our driver for giving pens & pencils to the children. He tells that they sharpen the ends and use them as weapons against each other and he also scolded the children for begging. I was told that the only acceptable way to donate such items was through a school or mission. Donations to schools are gratefully appreciated. As far as trading for gift items, you will find that the prices are the same with or without the trade. Several times the "do you have something to trade" routine was used as a ploy to hook us into buying and thinking it was a great deal. It wasn't. The one thing that is acceptable is giving US shirts or hats to your driver as a gift (along with the usual tip). All the drivers seemed to be proud of their US hats.

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Investment News Magazine - AUG 2015  

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Investment News Magazine - AUG 2015  

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