SECOND QUARTER NEWSLETTER

TSUNAMI QUARTERLY NEWSLETTER SECOND QUARTER EDITION FY 2021/2022

KIWASCO BRAND AMBASSADOR ...With all these achievements to her name, Caro has put the Brand KIWASCO into the limelight. Caro set a record of being the first ever female to win the coveted Employee of the Year award during the 2021 end year party. Congratulations from all of us once again ……

Full story on page 4

COMPILED BY:

Emmy Muga



Harriet Ashoro

Editor :Eldah Odongo

Our commitment; Reliability, Quality & Accessibility 1

NEWSLETTER – 2ND QUARTER EDITION

VISION ‘To be the most admired service provider’ MISSION ‘To provide quality water and sanitation services for improved livelihood’ CORE VALUES Integrity Professionalism Creativity and Innovation Customer Focus Teamwork

SLOGAN

RefreshLife 2

NEWSLETTER – 2ND QUARTER EDITION

TABLE OF CONTENT Our Philosophy…………………………………………………...….i

Vision Mission Core Value Commitment Chairman’s Address………………………………………….....…...1 MD’S New Year Address………………………………………...…3

Consideration for 2020………………………………………………4 Quarter ONE performance……..……………………………..….…5 KIWASCO Brand Ambassador………………………...……….....6 The Power of Service…………..……………………...…………....10 French Ambassador visits Dunga Intake………………….. .…..13 WORLD AIDS DAY-2021………………………………………....16

MD launches Creativity & Innovation programme……….…...18 One on One with Gadaffi .……………………...………..…….....21 Tree planting at KISAT…………………………………………….25 Financial Literacy……………………………..……………..……...27

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NEWSLETTER – 2ND QUARTER EDITION

CHAIRMAN’S ADDRESS My Fellow Board of Directors, the MD and his management team and all staff in general Good afternoon, We have all gathered here to celebrate as

the year 2021 comes to an end. And as we close the year, we need to reflect on what we have achieved in the year despite difficult times we are going through. Did we move forward or backwards? This is the question each one of us should be asking

Vinod Patel

ourselves. I simply want to give you a

external audit, Nick and Simon will assert

small homework - to evaluate yourself.

to this.

Usually, your supervisors or Head of de-

When the Greek philosopher Heraclitus

partments do evaluate you, but this time I

(heh-ruh-klai-tuhs) of Ephesus said the on-

need all of you to individually evaluate

ly constant in life is change, he also assert-

yourselves. Ask yourself, have I spent the

ed that resisting change is what makes hu-

year better? what have I achieved? Is

mans suffer in life.

there something I have contributed to-

Provision of water is not a business to

wards making a difference in the compa-

make money but a necessity and service to

ny or the society? Life is a question, we

every citizen and this has been enshrined

are all seeking for answers, and as we

in the constitution of Kenya 2010.

seek for those answers, let us also make a list of what we have achieved and what

You simply don’t buy a car to fuel it, but

needs to be accomplished.

fuel is required for you to move from one place to another. Similarly, we don’t oper-

Each one of us needs to carry out a self-

ate to make money, but money is required

audit. Every year businesses have their

as a resource for us to move from where

internal audits done to see how they have

we are to where we want to be.

performed and the data is taken for

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NEWSLETTER – 2ND QUARTER EDITION

Water is life, and the Board is very much

and responsibilities, and life’s greatest re-

alive to this fact. Our role is to provide

wards are reserved for those who demon-

strategic direction to ensure that we

strate never-ending commitment

achieve our Vision and Mission.

to all until they achieve. This level of deter-

Let us work to make this Company

mination can move mountains, but it must be

among the topmost Water Service Pro-

constant and consistent. It’s what you prac-

viders in Kenya. Recently, KIWASCO

tice in private that will be rewarded in pub-

was selected by UNHABITAT as one of

lic.

the companies to mentor other WSPs’.

Let me end by saying this:

Why do you think we were selected? Be-

“Every problem is a gift- without problems

cause we stand out.

we wouldn’t grow” I challenge you to make your life a masterpiece, I challenge you to join the ranks of

“I challenge you to make your

those people who lived what they teach, who

life a masterpiece, I challenge

walk their talk.

you to join the ranks of those

I wish you all happy holidays, Merry Christmas, and a Prosperous new year.

people who lived what they

ASANTENI SANA

teach, who walk their talk” Vinod Patel CHAIRMAN, BOARD OF DIRECTORS If any of you performs poorly, what kind of reward do you get? Some will say poor - there is no reward for poor performance. If you achieve an outstanding performance the rewards will equally be outstanding. I believe life is constantly testing us for our level of commitment

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NEWSLETTER – 2ND QUARTER EDITION

MANAGING DIRECTOR’S NEW YEAR ADDRESS The Financial year 2021/2022 is halfway and I am happy that month on month we have achieved most of the targets we set out. I am particularly thrilled with the steady decrease in our NRW of which a few Water Service Providers have been able to sustain. However, I will be happier if we get to below 20% which is the target for the very large utilities.

The leadership is ready to empower you to achieve your set targets So, what is the 2022 outlook?

I believe that by now, we all have set our personal goals for the year. For the Company at a glance, some of the main undertakings we look forward to in addition to your signed BSC objectives are;

Managing Director, Thomas Odongo

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Happy New Year!

Another year has gone, a new one has come. I would like to say thank you for being part of the winning team. We are a few days into the new year, its good to look ahead and think about what this year may bring to us. But first a quick look-back at the highlights of 2021.

Billing increased Decreased NRW We signed a new CBA with the unionisable staff We implemented the yearly salary increment Launched a state-of-the-art call Centre We emerged best in Customer Service following the WASREB Impact 13 report Introduced creativity and innovation programme.

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The QMS Re-certification audit that will begin on 11th January 2022 Implementation of the reviewed water tariff Development of a new strategic plan Hosting WASCO games in April Completion of our office building currently ongoing in Tom Mboya Estate.

Implementation of the LVWATSAN project Implementation of Water worx project in partnership with Dutch government.

Undertake UN habitat mentorship programme Improve collection efficiency

It is a promising year, let us do this again while upholding our core values and our promises to our customers.

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Cheers!

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NEWSLETTER – 2ND QUARTER EDITION

CONSIDERATIONS FOR 2022 1. ON EARNING: Never depend on single income. Make investment to create multiple income sources.

7. Past is a waste paper, present is a newspaper, and future is a question paper. Come out of your past, control the present, and secure the future.

2. ON SPENDING: If you buy things you do not need, soon you will have to sell things you need.

8. When bad things happen in your life, you have three choices. You can let it define you, let it destroy you or you can let it strengthen you.

3. ON SAVINGS: Do not save what is left after spending, but spend what is left after saving.

9. Our eyes are in the front because it is more important to look ahead than to look backwards.

4. ON TAKING RISK: Never test the depth of a river with both feet.

10. We use pencil when we were young, but now we use pens. Do you know why? Because mistakes in childhood can easily be erased, unlike now. Make wise decisions and choices.

5. ON INVESTMENT: Do not put all your eggs in one basket.

6. ON EXPECTATIONS: Honesty is a very expensive gift. Do not expect it from cheap people or those without proof of having succeeded.

Wish you a prosperous 2022.

You're a symbol of hope!!

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NEWSLETTER – 2ND QUARTER EDITION

SEP, OCT & NOV PERFORMANCE ZONAL AVERAGE PERFORMANCE ZONE

BILLING

COLLECTION

%

Milimani

10,084,754.67

9,382,122.01

93.03

CBD

23,736,235.67

21,602,481.12

91.01

Riat

3,969,790.33

3,790,006.01

95.47

15,125,819.67

14,034,785.79

92.79

KenyaRe

9,145,203.33

8,228,179.55

89.97

Manyatta

10,105,291.00

9,487,894.94

93.89

3,502,852.11

3,703,538.17

105.73

Middle East

DMM

94.55%

TOTAL

GLOBAL AVERAGE BILLING Vs COLLECTION 75,669,946.77 |70,229,007.59

GLOBAL AVERAGE NON-REVENUE 27.65% 5 8

NEWSLETTER – 2ND QUARTER EDITION

KIWASCO BRAND AMBASSADOR

Caroline at a panel discussion during East African Waters Conference . File/PHOTO

Having joined KIWASCO in the year 2015

February 2020, she submitted another

Carolyne started as a Meter reader in

concept proposal for the Afwa Innova-

Milimani where she was managing Books 4, 5

tive Awards in Uganda, and bagged an

and 6. While a meter reader, she graduated

award for being the most innovative

with a Bachelor of Arts Degree in Sociology

sanitation concept in Africa.

from Maseno University. Later on, Caro was

In between all this, Caro Implemented

then promoted to become the Water Kiosk

the SWESH clubs’ concept in schools

Supervisor where she worked for three years

connected

before becoming the Sanitation Development

work. Recently, she again developed a

Officer in the year 2019 when the Company

paper on the progress and implementa-

expanded its mandate to include sanitation as

tion of the SWESH clubs and this she

opposed to the traditional conventional sewer

submitted to the Waspa Conference

system.

2021. This submission was in the catego-

In the year 2018, Caro submitted a concept

ry of Vijanaa and Dada award's as an

proposal for the Iko Safi sanitation conference

innovative sanitation intervention and

in Nairobi and in 2019 she was invited to do a

here she was voted the best. In the

to

our

sewer

net-

presentation on the same in Nairobi. In

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NEWSLETTER – 2ND QUARTER EDITION

month of December 2021 Caro was invited to the East African Waters Conference as a speaker. There, she showcased how KIWASCO is implementing gender inclusivity in the workplace. So far KIWASCO is doing quite a lot in terms of involving women in the operations, something which was considered positive and worth an applaud.

Apparently, so far KIWASCO is the only Water Service Provider which clearly under-

stands the economic benefits of creating a gender inclusive work environment for its employees.

With all these achievements to her name, Caro has put the Brand KIWASCO into the limelight. Caro set a record of being the first ever female to win the coveted Employee of the Year award during the 2021 end year party. Congratulations from all of us once again.

Caroline displaying her awards during WASPA women conference– File/PHOTO

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NEWSLETTER – 2ND QUARTER EDITION

Caroline Odero during a panel discussion at AFWA conference– File/PHOTO

Caroline receiving an award during AFWA conference and WASPA women conference respectively– File/PHOTO

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NEWSLETTER – 2ND QUARTER EDITION

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NEWSLETTER – 2ND QUARTER EDITION

THE POWER OF SERVICE

MD, Thomas Odongo joined by customers for a cake cutting ceremony during customer service week– File/PHOTO

One of the core values of KIWASCO is cus-

dedicated to celebrate those who make a

tomer focus. Customer focus simply means

difference in the lives of their customers,

putting your customers’ needs first. Currently,

following the impact of Covid-19.

Kiwasco fights in the service space to give

The week started off with a virtual key-

customer experience.

note speech from the Managing Director

The customer service week is held globally

who emphasized on the need for staff to

on the first week of October with a view to

uphold and practice the customer focus

appreciate the importance of customer ser-

core value in their service delivery. He al-

vice and of the people who serve and sup-

so announced the good news that the

port customers on a daily basis. This year’s

company had reclaimed the coveted Best

celebration was held from 3rd to 7th October

in Customer Service award by WASREB

and KIWASCO had a number of activities

following the release of Impact 13 Awards.

lined up throughout the week including a

Mr. Odongo then led staff and customers

sports day, MD’s daily quiz to staff, cus-

in the cutting of a ceremonial cake at the

tomer’s trivia questions, customer visita-

customer care area. The cake was well

tion and drinking water competition. The

decorated with symbolism of tap water

theme for this year was ‘the power of ser-

flowing. The cake cutting was replicated

vice’,

across all the stations.

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NEWSLETTER – 2ND QUARTER EDITION

On the same day, the MD began his 5-day series of daily quizzes to staff. He would share a question via link to all staff and the first correct answer was awarded. The questions hinged on understanding customer service. The winners in the quizzes were Beryl Obedi, Geoffrey Opiyo, Francis Okulo, Rose Kahe and Irene Wanga

Geoffrey Opiyo

Beryl Obedi

Francis Okulo

Irine Wanga

Rose Kahe 11 14

NEWSLETTER – 2ND QUARTER EDITION

Likewise, we ran a trivia session for customers on our social media platforms. There we undertook to find out how much they understand our products and services. Their feedback was amazing as indeed they have knowledge of what we do. We also had giveaways for the winners.

Part of Dunga Treatment Plant staff receiving their cake during customer service week 2021– File/PHOTO

Mr Ondingo and Mr. Ochola awarding a section of commercial customers during customer service week 2021– File/PHOTO

Customers during drinking water competition as we marked customer service week 2021– File/PHOTO

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NEWSLETTER – 2ND QUARTER EDITION

THE FRENCH AMBASSADOR VISITS DUNGA INTAKE For the second time this year, we were privileged to host a delegation from France at Dunga Intake plant. A team led by the French

Ambassador

to

Kenya and Somalia, Aline Kuster-Menager

visited

different

where

sites

LVWATSAN projects are being

implemented

for

MD, Thomas Odongo leads the French delegation in promoting drinking of tap water. File/photo

progress report update.

within the City of Kisumu

The project will also un-

Being the regional eco-

meant to significantly im-

dertake rehabilitation and

nomic, commercial and

prove water and sanitation

extension of water distri-

transport hub of the West-

services to residents.

bution networks and, ex-

ern Region, Kisumu is al-

The

ways faced with challeng-

LVWATSAN is to extend

tion,

es to cope with increased

water supply system within

treatment infrastructure.

demand for improved wa-

Kisumu City and other

One of the pillars of the

ter and sanitation ser-

satellite towns like Maseno,

LVWATSAN

vices. It is against this

Daraja-Mbili and Kiboswa.

is to reduce Non-Revenue

backdrop

Agence

Also, to expand sanitation

Water from 45% to 25%. At

Francais De Development

facilities to mitigate pollu-

the same time, it seeks to

(AFD), the Government of

tion of the environment.

prepare a master plan for

This will increase water

water resource and waste

supply and sewer coverage

water for future develop-

from 67% to 90% and 16%

ment and also increase ac-

to 45% respectively.

cess to water and

that

Kenya through Lake Victoria South Water Works Development Agency has implemented projects

main

objective

of

pansion of sewer collectransmission

and

programme

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NEWSLETTER – 2ND QUARTER EDITION

sanitation in low income areas of Manyatta, Obunga, and Nyalenda.

The LVWATSAN programme is in line with the Sustainable Development Goal 6, and is meant to address the emerging gaps in water and sanitation and is co-financed by the European Union (EU), European Investment Bank (EIB) and AFD.

Eng. Odede briefing delegates on LVWATSAN project progress. File/PHOTO

Eng. Jura leading the delegatation on Dunga Intake plant tour. File/PHOTO

Eng. Jura leading the delegatation on Dunga Intake plant tour. File/PHOTO

French Ambassodor Aline Kuster-Menager signing the visitors book. File/

MD, Thomas Odongo presenting a gift to one of the delegates signing the visitors book. File/PHOTO

French Ambassodor Aline Kuster-Menager serving her colleague KIWASCO tap water during the visit. File/PHOTO

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“A rule for healthier living; Less soda, more water.”

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NEWSLETTER – 2ND QUARTER EDITION

WORLD AIDS DAY, 2021 - End Inequalities. End AIDS. End Pandemic Each year, on 1 December, the world commemorates World AIDS Day and people around the world unite to show support for people living with HIV and to remember those who have died from AIDS-related illnesses. The company supports this course and equally takes part in the World AIDS Day - related initiatives.

As the norm, a team from the company joined in the Kisumu Chapter celebrations of the Day

and here is a snippet of what some of them learnt; .

“Everyone is a key player in the society in sensitization of youths against teen pregnancies who form the major category of new HIV infections” Sharmwey Wasumwa

“It is an opportunity for people worldwide to unite in the fight against HIV and to show support to those living with HIV” Brenda Olang’o

“There is need to increase awareness and fight prejudice to end teenage pregnancies, end GBV and end new HIV infections” Andrew Mukweyi

This years’ theme which was addressing the issue of inequalities sought to communicate about the importance of equitable access to health services and the importance of strengthening actions at the primary health care level, with special emphasis on HIV combination prevention treatment services.

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NEWSLETTER – 2ND QUARTER EDITION

At the height of Covid-19 pandemic, HIV prevention and treatment services were weakened in Countries. Through this, important lessons were witnessed such as dispensing several months’ medication at one time, implementing HIV self-testing and using telemedicine have proved to be effective strategies that can be incorporated into our normal routines.

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NEWSLETTER – 2ND QUARTER EDITION

THE LAUNCH OF CREATIVITY AND INNOVATION PROGRAM

MD, Thomas Odongo presenting ‘Best in Customer Service’ award to Lucy Agolla. File/PHOTO

The Managing Director launched a creativity

I have realized that the value of creativity

and innovation programme in the month of

and innovation is not utilized as it is

October 2021. This programme is expected to

mostly misunderstood but many times

act as an incubator of innovative ideas that

we have not given it much attention. Due

would be a game-changer to how the compa-

to these fore goings, I decided to kick-

ny operates by providing staff with the plat-

start a creativity and innovation pro-

form to share and discuss them.

gramme.”

Speaking during the launch, the MD said,

As the MD went around all the stations

“the company has instituted clear and inten-

having

tional core values that are our guide towards

launched the programme, he kept rein-

achieving our mission and vision. Our core

forcing the thought that a creative idea

values are thoroughly thought out and if we

does not have to be something out of this

uphold them, it will help us build great

world, but any idea is good. Any staff

teams, improve service delivery to our cus-

should not shy away from expressing

tomer and foster staff professionalism.

what they think could bring a difference.

breakfast

with

staff

as

he

During the launch, the staff at the station

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NEWSLETTER – 2ND QUARTER EDITION

elected champions who will act as their representatives. The champions were selected because they are respected and liked by peers, they possess good interpersonal skills and are committed to the success of the project. In addition, the MD added another team who will work together with the champions and provide mentorship.

The champions and their mentors are as listed below;

Ebell Tindi, Champion Dunga Plants Mentor : Timothy Wadenya

Sharmwey Wasumwa, Champion Head Office

Reuben Omany, Champion Head Office Mentor : George Odero

Penina Genga, Champion Kajulu Mentor : Elly Odhiambo

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NEWSLETTER – 2ND QUARTER EDITION

Felix Sadimba, Champion Kibuye Station Mentor : Faith Akinyi

Tony Okomo, Champion Kisat Station Mentor : Kevin Obat

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1.MD addressing staff at the head office. File/Photo 2.Faith during staff meeting at Kibuye Station. File/ Photo 3.Mr. Achar during staff meeting at KISAT Plant.File/Photo

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NEWSLETTER – 2ND QUARTER EDITION

ONE ON ONE WITH GADAFFI probation for only 3 months thereafter I was confirmed.

I enjoy working with the technical network team that I am mainly attached to because I

interact with different people with different knowledge. This makes me grow all round.

However, I am not restricted, I can always assist other teams in their duties.

What do you love most about your work?

Boma Gadaffi. File/PHOTO

Tell us about yourself My name is Boma Gadaffi born on 9th Nov 1979. I am married with 3 kids and expecting another child anytime soon.

What I love most is that I am attached to a unit that is core to the company operations and so by facilitating the team through taking them to sites where there are bursts/ leakages, ferrying materials like pipes, troubleshooting for customer complaints to provide solutions etc gives me unending

What do you do in KIWASCO?

satisfaction. If I fail to deliver on my duties

Am employed as a driver under the Hu-

even for one hour I usually feel sick. I

man Resources & Administration depart-

know very well that I am at the epicenter

ment but attached to the technical network

of network maintenance and hence the mo-

team.

tivation to carry out my duties diligently.

Tell us more about your work I joined KIWASCO in the year 2010 in No-

What value have you added to your life

vember and since then I have lived to ap-

since you joined KIWASCO?

preciate getting this chance. Nowadays it is

KIWASCO is a very good organization.

not easy getting a permanent and pension-

Since joining the company, I can boast of

able job. When I first joined, I was put on

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Lifestyle

NEWSLETTER – 2ND QUARTER EDITION

several things that I can count as my own.

work had to continue and my work is mo-

It is now 10 years down the line and I am

bile. In the process I have maintained a

proud of my achievements that even if I

good rapport with almost everyone.

retire today I will still be contented.

What are your future plans for growth?

First, I own 2 parcels of land that I bought

Being a driver is my line of profession. I

through loans that KIWASCO facilitate. I

would therefore like to maintain myself as

then built my home in Nyamasaria and

a driver but improve my skills through

another one in my rural village.

short courses; I intend to go for Job Grade

Secondly, by being in KIWASCO, I man-

2 then 1. Thereafter I will be called a Sen-

aged to take my wife back to college after

ior driver. I would also like to undertake

taking a loan from KIWASCO Sacco and

defensive driving for drivers and First Aid

she already graduated from the Kenya

test for drivers.

Medical Training College.

You talked about retirement, what advice

While still in this company, I have been

can you give fellow staff?

diligently paying school fees to some of

When you are still working, kindly plan

my siblings and other needy children in the community.

ahead. Do not forget that one day you will go home. Do not wait for pension funds so

This may sound strange but because of

that you build your home, instead use that

working here I am now famous in Kisu-

pension to boost your business after retire-

mu. I am always moving around in the es-

ment. If you plan to use funds from pen-

tates so people get to know me more espe-

sion schemes for primary needs like build-

cially our customers. I like the fact that I

ing your home, you will realize that mon-

am now famed because this helped me

ey will not be enough to complete the con-

during the post-election violence when

struction and for your survival.

chaos erupted in Kondele. I was among

the few people allowed to pass the road blocks without being scolded or being hurt in any way. As an essential service,

I would also like to advice anyone who wants to grow to start by taking a loan and buy a piece of land. Growth is an individual decision, the company cannot .

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NEWSLETTER – 2ND QUARTER EDITION

decide for you that it’s time to take a loan for

neat. Coming to KIWASCO I main-

yourself or engage in other personal develop-

tained the same trend. I get irritated

ments. Its upto every one of us to know when

with a dirty environment. I wash KBS

to make the right decisions that will eventually

531D every day after performing my

shape your life. You see KIWASCO is only

duties and park it so that the following

found in Kisumu County so there’s no way

morning I just start my assignments

you can be transferred to another town so you

with a clean vehicle. A clean start is a

can go ahead and invest in this City comforta-

boost to my day.

bly

Do you think you have inspired fel-

Previously, you used to win awards on best

low drivers?

dressed, tell us the secret.

People have different thoughts on how

I won the awards as best dressed four times in

they carry out their plans, some of my

a row. I enjoy dressing up well. Even without

colleagues don’t wash the vehicles

the awards, I still dress up well. I was born to

they are assigned to daily. But I know

be smart, and smartness is part of me. When I

most of them have been inspired by

was growing up, I used to see my neighbors at

me to maintain a clean vehicle You see

home dress well while going to work so I pur-

my vehicle is the one which does the

posed in my heart that when I grow up I will

dirtiest jobs in the company i.e carry

do the same.

pipes, ballast, sand, murram, chemicals etc so if I wasn’t keen on cleaning it, by

You are not only smart always, but you also maintain the vehicle you are assigned to very

now it would be something else. Since being given the vehicle in 2012, I have maintained it by washing daily and al-

neat.

I can remember while working in Equator Bottlers (my previous employer), staff used to call me ‘smart guy’ since I was still dressing up well and the lorry that I was assigned to was ever

so taking it for repairs immediately I notice a problem. I thank the SCM, HOF, HHR&A and the MD for their quick facilitation whenever there is a problem.

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NEWSLETTER – 2ND QUARTER EDITION

Mr. Boma while on duty. File/PHOTO

Have

you

ever

been

involved

in

an

accident

with

this

vehicle?

No, I haven’t been involved in an accident with this vehicle but the one I was attached before - KAU 576A. It was a minor accident along Nyamasaria involving my vehicle and a motorbike rider who was overtaking. There were no casualties though.

Your last words?

My parting shot is that we should love one another. In this world we require one another, you can’t succeed in isolation. Embrace teamwork for the company to grow and succeed.

“I won the awards as best dressed four times in a row” .

Boma Gadaffi 24 27

NEWSLETTER – 2ND QUARTER EDITION

TREE PLANTING AT KISAT Trees have the capacity to act as carbon sinks and also provide key environmental services, which are important in climate change mitigation and adaptation. Therefore, they will be able to absorb excess emissions from the plant in form of carbon monoxide reducing air pollution thus allowing flow of fresh to the environStaff taking part in the tree planting activity. File/PHOTO

ment.

“The true meaning of life is to plant trees, un-

"It is important to understand that trees

der whose shade you do not expect to sit."

play an integral part in addressing issues

― Nelson Henderson

of climate change which affect the Company. Some of the recent occurrences that we have witnessed include the rise in

The tree planting drive in the company con-

Lake water levels, decreased volume of

tinued, with the latest exercise taking place at

water at River Kibos and the rise of the

KISAT station. Staff members, on 19th No-

stubborn lake weed (water hyacinth)

vember, 2021 took the lead in the tree plant-

among others.

ing activity where over 300 tree seedlings and Kay Apple were planted in the spirit of combating the effects of climate change as was the rallying call in the recently concluded COP 26 UN Conference on climate change.

To complement our efforts as a Company, Equity Bank donated up to 3,000 tree seedlings to support the tree planting drive.

Staff taking part in the tree planting activity. File/PHOTO

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NEWSLETTER – FIRST QUARTER EDITION

Water is the driving force Of all nature.

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NEWSLETTER – 2ND QUARTER EDITION

DIVERSIFICATION STRATEGIES

financial assets, optimising risk exposure,

TO GROW YOUR INVESTMENTS

and having the right discipline to keep

IN THE NEW YEAR COVID-19’s

impact

reinvesting into the portfolio.

This works best if you are a young person

on

individuals, who can invest savings for several years or

communities, and organizations is rapidly decades and benefit from stock growth and evolving. the year 2022 is poised to be a year reinvested dividends. of recovery with Covid-19 vaccine access One of the ways you can reap as an investor emerging as a critical determinant to is through a well-crafted diversification investment

recovery.

strategy.

Diversification

is

In Kenya, the economy is projected to defined as the technique that reduces risk by stabilise at 5.8 percent in 2022 as the allocating

investments

across

various

government’s efforts to stimulate economic financial instruments, industries, and other activity through the Big Four agenda go a categories. It aims to maximise returns by notch higher through the actualisation of investing in different areas that would each policies

and

programmes

meant

to react differently to the same event.

accelerate and sustain inclusive growth, But why diversify? How and when should create jobs, reduce poverty and income you diversify? inequality, ensure food security and access As an investor, one of the most important

to affordable and decent housing.

reasons for diversification is spreading one’s

For the discerning investor, 2022 is the year risk to maximise returns in assets classes of recovery. It is the year to take a vantage similar to your risk tolerance. This means position and reap from your investments as spreading your investment portfolio mix in the economy moves out of recession, line with your risk appetite but performing recovers and stabilises.

better than your current position.

To achieve your investment goals faster, Historically, investors who diversify their

you need to invest your savings in portfolios have had a better chance of portfolios that yield above-market returns. ending up with higher returns because This implies selecting the top growth

diversification reduces portfolio volatility

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and mitigates losses from any one security

Secondly, it is important to determine what

or asset class.

percentage of your investment you want to

When

deciding

to

diversify

your

expose to other asset classes according to

investments, certain imperatives need to be

your risk appetite. For example, in the stocks

considered, among them capital allocation,

portfolio, you may choose to invest in the

asset allocation, and security selection.

financial counters, which pay good dividends

The first consideration is assessing your

year on year. Hence you can peg a return

current holdings and portfolio mix.

from this in the top four performing banks

Many clients have invested in assets classes

listed at the NSE.

that give them fixed income through unit

Another important consideration is whether

trusts like the money market fund. Few

you are chasing capital gains or cash flow, or

individuals have a share and stock mix. A

both. Capital gain is realised when you sell

lesser number has exposure to REITs (Real

your investment. For example, you can buy a

Estate Investment Trusts).

stock at Sh 20 and sell it at Sh 30. Your profit

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of Sh10 is the capital gain. You can buy a house at Sh1 million and sell it at Sh 2 million and you have a capital gain of Sh 1million.

Cash flow is when you buy a stock that pays a dividend every half year, and it can come from rental income and business income, among others. You buy and hold the investment to continue earning distribution income over time.At most, pick a minimum of four asset classes to diversify into according to your age and risk profile.

For example, you can benefit from investment in both shares and REITs. In shares you buy a share at a certain price and hold for the long-term while still earning dividends and waiting for the price to go up then you can choose to sell or not.

In REITs, you buy the units at a price and you earn dividends from the distribution done by the REITs manager. You can also sell the REITs when the unit price goes up if you wish.

Choosing the right portfolio mix and making sure it is well diversified to mitigate against

risks will ensure that if a certain sector is negatively affected, the gains from the other sectors will compensate for the losses in one.

Remember, your personal time horizon risk tolerance, investment goals, financial means, and level of investment experience all play a huge role in dictating your investment mix.

It is therefore wise to consult experienced investment professionals so that you can shorten your learning curve and increase your chances of reaching your goals at the desired time.

By Njeri Ndirangu General Manager, Retail Investment at Acorn Investment Management Limited.

Published on the Business Daily 7th December 2021

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