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CONTENTS Procurement & Logistics Management, January - February 2016 issue

Welcome... Boosting aviation sector can spur economic growth Africa is emerging as the next and last frontier in globalization in this regards developing the aviation industry will be vital if the continent wants to overcome its weak infrastructure. The continent is a huge land mass with more than a billion young population and of late it is attracting huge flow of foreign direct investment. Putting all things together, Africa is going to be the next and last frontier in globalization, so it's going to grow very fast in the 21st century.

African Airports in massive expansion

Majority of airports in Africa are undergoing expansion in a bid to cater for rapidly growing passenger and cargo traffic volumes.

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DEPARTMENTS .................................................. 3. EDITORIAL 6. BRIEFS 8. NEWS 22. FEATURES 28. TECHNOLOGY 30. REPORTS

Next issue .................................................. In our next issue, we are covering Warehousing and Packaging in logistics. If you would like to advertise or contribute on any of the supplements or features please contact us on 020 440 4488 or send us an email to: sales@ proclogistics.com

BOOKING DEADLINE Friday 26 February 2016

FEATURES ...................................................................................... 22.

24.

Is offsite construction the perfectly timed solution for Kenya?

The call for a quick and sustainable solution to the current housing shortage has created an opportunity for offsite construction to become a key building method to meet demand.

Trending roofing materials in Kenya We look at various roofing products in Kenya.

TECHNOLOGY ...................................................................................... 28.

Technology firms continue not to advance women Technology companies have disrupted other industries with apps that dispatch cars, housekeepers or pizzas in a matter of minutes. But tech firms lag behind those old-line businesses when it comes to advancing women.

REPORTS ...................................................................................... 30.

Kenya still attractive to incoming cruise tourists Kenya tops the list of Countries with attractive Ports and sceneries

for cruise tourists sailing along the Indian Ocean Rim, a Global

Conference on sea trade cruise was told recently.

However the aviation industry should move with speed to keep pace with this rapid growth, by boosting its infrastructure. But it is also important to note the recent infrastructure development taking place in Africa. There have been spirited efforts to construct more roads and development of rail transport network. Some countries however are still lagging behind in infrastructure construction and so air transport is a key essential public transport service. Kenya Airways for instance is the largest domestic African carrier by fleet fleet and by the number of international destinations that it serves. Through its hub in Nairobi, the airline connects major cities across the continent with Europe, Asia and the Middle East. But with a rising demand for affordable travel options and an increasing reliance on air transportation, the low-cost airline model is starting to lift off in Africa. FastJet, which operates out of Tanzania and is backed by the founder of EasyJet, is one of several budget carriers changing the current landscape, with no frills, one-way fares starting at around $20. However ,there is still a lot to be done, but key for the growth of Africa’s aviation industry is government support and more involvement of international aviation bodies in consulting authorities and highlighting the opportunities. Côte d’Ivoire just gave us a good example of that. The state invested 10.6 million euros to rehabilitate domestic airports, so the national carrier Air Côte d’Ivoire can now link with several inland cities. To realise much needed success in the aviation industry, safety-related standards and recommended practices should be put in place. This will not only boost the economy of Africa countries but enhance interconnectivity among the countries as well.

We once again welcome you to this edition.

MANAGING EDITOR Okumu S. Biko EDITOR Anthony Kiganda WRITER Sandra Dinga GRAPHIC DESIGN & LAYOUT Augustine Ombwa MARKETING EXECUTIVE Ken Okore CIRCULATION Proc & Logistix Consult

...................................................... Procurement & Logistics Magazine @ LogisticsProc

...................................................... The editor accepts letters and manuscripts for publication from readers all over the world. Include your name and address as a sign of good faith although you may request your name to be withheld from publication. We reserve the right to edit any material submitted . Send your letters to: editor@proclogistics.com Procurement & Logistics Management. is published six times a year and is circulated to members of relevant associations, governmental bodies and other personnel in the procurement, logistics and finance industries as well as suppliers in East and Eastern Africa. The editor welcomes articles and photographs for consideration. Material may not be reproduced without prior permission from the publisher. The publisher does not accept responsibility for the accuracy or authenticity of advertisements or contributions contained in the journal. Views expressed by contributors are not necessarily those of the publisher. © All rights reserved. Copyright - Procurement & Logistics Management. No part of this publication may be copied or reproduced without prior permission from the publisher


BRIEFS

BRIEFS

Qatar Airways launches new flights between Doha and Durban

Two days of celebrations marked the launch of Qatar Airways’ new four-times-weekly service between Doha and Durban in the South African beachfront city. Qatar Airways’ inaugural flight QR1367, operated with a Boeing 787 Dreamliner. Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker, sad at launch of the flight: “It is a great pleasure to further expand our worldwide network with the addition of Durban. We have connected the people of South Africa with our expanding global network for a decade and it is with much delight that we open a third gateway in this beautiful country. “Durban’s prestige as a tourism destination is attracting an increasing number of travellers who deserve the world-class service and best in class value that only Qatar Airways can deliver.” The Premier of the KwaZuluNatal Province, Mr. Senzo Mchunu, welcomed Qatar Airways and remarked, “Direct long haul air services from Durban will continue to be very important for our province as they serve as the lifeblood of our economy, by opening up new markets for our goods around the world

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and delivering tourists to our shores. In order to position this city internationally we have taken a route to position Durban as the events capital of Africa, this approach has brought us a tremendous amount of international attention and support from the business community, delegates, tourists and fans from around the world.” The launch of the new service between Doha and Durban complements the airline’s existing daily flights to Cape Town and double-daily flights to Johannesburg, and is an expansion of the airline’s operations in South Africa. Travellers can now choose from a total of 21 flights a week to South Africa from Qatar Airways’ hub, Hamad International Airport. Passengers to and from Durban will have the opportunity to enjoy award-winning Business and Economy Class service while travelling on a Qatar Airways Boeing 787, including up to 2,000 films, music titles and TV shows on Oryx One, the airline’s world-class inflight entertainment system. One of the newest aircraft in the Qatar Airways fleet, the Boeing 787, also known as the Dreamliner, accommodates 254 seats configured in two classes.

Joint scheme by Kenya, Uganda, Rwanda to increase cargo safety Kenya, Uganda and Rwanda are set to embark on a joint cargo monitoring scheme in June in a bid to increase goods security and safety. The Electronic Cargo Tracking System (ECTS) comprises satellites, a monitoring centre and special electronic seals fitted on cargo containers and trucks, which give the precise location of goods in real time. Uganda Revenue Authority (URA) reiterated that by June 2016, goods on transit along the northern corridor; Mombasa to Kigali will be monitored in real time with an aim to curb vices such as dumping and theft. The system will be configured in way that it triggers an alarm whenever there is diversion from the designated route, an unusually long stopover or when someone attempts to open a container. Kenya and Uganda will jointly attach electronic seals onto cargo at Mombasa once the scheme is implemented. This will make a huge impact as goods will no longer disappear in anyone’s territory since we will have response teams on stand-by for swift intervention, URA Customs Commissioner, Dicksons Kateshumbwa said. The system will also help in sealing loopholes that are believed to cause losses in revenue through suspected under-declaration of

the value of exports. Kenya and Uganda have successfully piloted the ECTS while Rwanda has begun trials and targets to fully adopt the system by mid this year. South Sudan is also expected to come on board soon following the wake of its recent admission as the sixth member of the East African Community (EAC). In a statement in January, Kenya Revenue Authority (KRA) commissioner-general, John Njiraini said the new system’s key strength is that unlike presently the three northern corridor countries, shall use one system and one platform, with seamless visibility from Mombasa to Kigali and eventually Juba. Kateshumbwa said the southern corridor; Dar-es-SalaamBujumbura will be monitored by a similar system. Kenya introduced ECTS in July 2009 as it intensified its move to curb purge dumping of transit goods in the local market. The system was particularly set to monitor movement of goods between Mombasa port, Busia and Malaba border points through which goods enter the landlocked Great Lakes Region. The country is a key gateway to the region in that the Mombasa port handles imports such as fuel and consumer goods for Burundi, Uganda, Rwanda, South Sudan, Somalia, the Democratic Republic

Procurement & Logistics Management | Jan - Feb 2016

Joint scheme by Kenya, Uganda, Rwanda to increase cargo safety

of Congo and exports of tea and coffee from the region. The KRA later brought on board export goods and all others under customs control as it broadened the scope to fight tax evasion. All exporters, importers, clearing agents and transporters conveying goods under customs control are required to install the ECTS, phasing out tamper-prone seals. After the ECTS equipment installation, the once cumbersome practices of customs physical escort were phased out and a waiver introduced on annual transit goods license fees. In addition to customs, the system will also provide real time information on the location and status of the cargo to transporters and cargo owners or their agents as the goods are transported along the northern corridor. “The system provides real time information on the location and status of the cargo to transporters and cargo owners or their agents as the goods are transported along the 1,200km journey from Mombasa to Kampala. Until now, one can only know the location by calling the driver,” Mr Kateshumbwa said. Since the adoption of the Single Customs Territory (SCT) system, trade operations in East Africa have become smooth. SCT deal came into effect in 2014 and has enabled clearing agents within the EAC to get rights on relocation and also to carry out their duties in any of the partner states; a strategy that aims to improve flow of goods and curb dumping. Kenya, Uganda and Rwanda were the first to take up the SCT arrangement in April 2014. Tanzania joined the scheme two months later. Procurement & Logistics Management | Jan - Feb 2016

New maritime college to open in Kisumu

After decades of idleness and neglect, activities at the Kisumu port are set to come back to life with the opening of a new maritime training college. Lake Victoria Marine Training School, a World Bank funded institution will in April open doors for the first batch of trainees. The Kenya Railways-run College will supplement similar colleges in Bandari, Mombasa, and Tanzania’s Dar es Salaam Marine Institute and will boost efforts to improve transport safety on Lake Victoria. The school will be based at former storage facility at the Kisumu port that was recently refurbished through a Sh40 million financing by the World Bank. Kisumu port manager Mwalimu Disi said that on its opening, the institution would admit about 200 students from the Lake Victoria basin region. “We will admit the first batch of students from graduates of the recently released KCSE results,” Mr Disi said. He added that they are also plan to absorb lake users without basic training to be among their prospective students. Despite having some of the best port equipment in East and Central Africa, Kisumu has seen slow activity in lake transport which has left the town idle. Mr Disi said the equipment that was previously used for fabrication of ship parts would be utilized for practical training at the college. “The equipment here is the best so far in terms of their capability to

combine old and new technologies for training an all-rounded marine engineer,” he said. With most of the boat operators on Lake Victoria still lacking basic training and certifications, the school will host them together with ship builders, engineers and coxswains across East Africa. They will get quality and hands-on training with the institution looking at expanding its borders in subsequent phases of the project. The Kenya Maritime Authority and other regulators will now have a better ground for cracking down on non-compliant lake users. According to Mr. Disi, there will be no more excuses for lack of schools for such groups to get basic skills required for one to operate vessels at the lake. The lake city is deemed a critical hub for trade with Tanzania and Uganda as well as Rwanda and Burundi including other countries in the Great Lakes region. The port registered robust business activity for decades with the help of a reliable railway system and maritime vessels that ferried cargo to ports such as Mwanza and Bukoba in Tanzania as well as Jinja and Port Bell in Uganda. Lake Victoria’s economic activities have been eroded by a number of factors, including a dilapidated railway infrastructure. Plans to set up a modern port in Kisumu are however underway and this will be a major boost with Kenya keen on bigger shares of maritime trade in the region.

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BRIEFS

BRIEFS

Kenya seeks adviser to find Tanzania leads East Africa operator for Standard Gauge C orporation (EAC) peers in network new logistics survey

Kenya has invited bids for an adviser to help identify an operator for its new standard gauge railway network, a massive infrastructure project aimed at boosting trade and cutting transport costs across east Africa. The rail project, which began in December 2014, will eventually link Kenya's Indian Ocean port of Mombasa to the capital Nairobi, then on to Uganda. State-run Kenya Railways (KR) said in a newspaper advertisement on Tuesday the adviser would recommend the appropriate operating model for the railway that is currently under construction. The new Chinese-funded railway line is expected to ferry heavier and bigger containers much faster and reduce pressure on the region's roads, which have been damaged by heavy traffic and uneven maintenance. The 609 kilometre railway is expected to open up to commercial services in mid-2017. The existing metre gauge railway was built by the British at the turn of the last century and is in bad shape due to years of mismanagement and neglect. Already Kenya and China have signed a US$ 5.4bn agreement that will see the construction of the Naivasha-Malaba Standard Gauge Railway line under the Kenya SGR Developments complete. The signing of the agreement between Kenya and China Communications Construction Company (CCCC) reveals yet another important

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milestone regarding the Kenya – China cooperation for the mutual benefit of the two countries. This initiative comes just after the Cabinet Secretary signed four commercial contracts between Kenya Railways and China Communications Construction Company which include; Naivasha- Kisumu, Kisumu-Malaba, Kisumu Port Development and Modernization and expansion of the Inland Container Depot at Embakasi in Nairobi. At the moment, Kenya is constructing a Standard Gauge Railway between Mombasa and Malaba as part of the development for the East African Community protocol. The development will hence connect the port of Mombasa to Kampala, Kigali and Juba. The construction work is anticipated to be in operation by December 2018 and so far the first phase of the project from Mombasa to Nairobi is 75 percent complete and yet to be finalized in June 2017 while the second phase of the project from Nairobi to Naivasha is set to begin in June 2016. Phase 2 which is from Nairobi to Malaba has been divided into three sub-phases which are: Phase 2A Nairobi-Naivasha, Phase 2B Naivasha- Kisumu including the development of a new high capacity port at Kisumu and Phase 2C Kisumu-Malaba.

Tanzania has topped its EAC bloc peers in a new logistics index that uses economic and trade data, social indicators and transport development to rank 45 emerging markets in which China leads the pack. The company behind the index, Agility of Kuwait, says the rankings seeks to enable developing nations to establish efficient supply chains that power businesses and drive trade, creating access to new opportunities. According to the Agility Emerging Markets Logistics Index 2016 released recently, Tanzania is ranked 40th while Kenya and Uganda are in positions 43 and 45 respectively. Rwanda and Burundi are not included in the logistics chart. “The Index, in its 7th year, offers a snapshot of logistics industry sentiment and ranks the world’s 45 leading emerging markets based on their size, business conditions, infrastructure and other factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors,” Agility said in a statement. The survey involved 1,100 logistics and supply chain executives, who expressed optimism for this year saying they expect an uptick in emerging markets growth in 2016, despite concerns about further slowing in China, fluctuations in oil prices, and the possibility that the US economy could weaken. After a year of turbulence, 61 per cent of the logistics industry executives said they were unclear on the direction of the global

economy or expect more volatility in 2016. In spite of their wariness, roughly the same proportion (59.4 per cent) say the International Monetary Fund (IMF) forecast of 4.7 per cent growth in emerging markets is “about right”. Emerging markets grew an estimated 3.6 per cent to 4.2 per cent in 2015, down from 4.5 per cent in 2014. The EAC economies with the exception of politically turbulent Burundi are currently among the top growth performers in the world with Tanzania expected to record a GDP expansion of seven per cent this year. The country, whose growth averaged 5.5 per cent during 1997-2006 according to Harvard University, which forecast the 2014 and 2015 growth rates at seven and 6.9 per cent respectively, has an estimated GDP value of slightly over US$40 trillion. ““Macroeconomic performance in Tanzania remains strong and medium-term prospects are favourable,” IMF says in its latest assessment of the national economy, which was released on Friday. For the first time, supply chain professionals surveyed see India – rather than China – as the emerging market with the most growth potential. And in the overall Index rankings, India climbed two spots to No. 3, behind only China and United Arab Emirates (UAE), on strong economic performance and initial reforms launched by the government of Prime Minister Narendra Modi.

Procurement & Logistics Management | Jan - Feb 2016

KAA terminates Greenfield Kenya Reinsurance Corporation Limited (Kenya Terminal project at the Jomo Kenyatta International Airport Re) opens Zambia unit

Kenya Re has set up a subsidiary in Zambia as part of its strategy to cut its reliance on the local market, with the company announcing a 13 per cent net profit growth in the year ended December. The Nairobi Securities Exchangelisted firm said its net profit in the period stood at Sh3.5 billion compared to Sh3.1 billion a year earlier, benefiting from a growth in premiums and investment income. The company declared a dividend of Sh0.75 a share, up from Sh0.70 per share paid out for the full year 2014. The Lusaka unit began operations in December and will serve as Kenya Re’s regional hub to serve the southern Africa markets such as Botswana, Lesotho, Namibia, South Africa and Swaziland. The Zambian subsidiary becomes the second after the first one set in Abidjan, Ivory Coast in May 2014, which made a net profit of Sh120 million in its first full-year operations. “The Lusaka office will help us win new business in the Southern Africa markets,” said Managing Director Jadiah Mwarania. Kenya Re said it invested Sh20 million in the Lusaka unit where the minimum capital requirement to set up an insurance firm is ZK 1million ($192,000). The company, controlled 60 per cent by the National Treasury, could face increased competition in the local reinsurance business

after the entry of Togo-based CICA-RE last week. Other players are East Africa Re, Continental Re, Zep Re, Africa Re, Munich Re and Ghana Re. Kenya Re’s entitlement to a fifth of local reinsurance premiums, however, was renewed last year for a five-year period in a move that guarantees it a significant portion of local reinsurance premiums. The Ivorian subsidiary, started in 2010 as a representative office, saw Kenya Re report group results for the first time, giving investors insights into the financial performance of the wholly-owned Abidjan unit. Kenya Re’s total gross premium grew 13 per cent to Sh13.06 billion helped by the new re-insurance deals bagged in the African markets. Net claims surged 19 per cent to Sh7.3 billion in what Kenya Re blamed on “sizeable” payouts to cover the April 2015 Nepal earthquake where it was exposed to the tune of Sh300 million. The company’s investment income grew by nearly a fifth to Sh3.04 billion thanks to higher earnings from government securities which offered high returns in the second half of 2015. The re-insurer made a one-off gain of Sh112 million on disposal of a 60-acre piece of land in Eldoret. Kenya Re also made undisclosed capital gains from the sale of its shares held in BAT Kenya and EABL, Mr Mwarania said.

Procurement & Logistics Management | Jan - Feb 2016

The Kenya Airports Authority (KAA) has terminated the Greenfield Terminal project at the Jomo Kenyatta International Airport due to the operational, economic and financial dynamics that have been experienced; this is according to a statement from the authority. “The Kenya Airports Authority wishes to inform members of the public that the JKIA Greenfield Terminal project has been terminated with immediate effect by the authority,” acting managing director Yatich Kangugo said in a statement. Payments to Anhui Construction Company which was the company contracted to carry out the construction was also stopped. However, Anhui withdrew US$ 4m from KAA before the commencement of the project after it went to site in September 2013. The US$ 551m terminal was intended to be the largest in Africa increasing JKIA’s capacity to 20 million passengers annually with the closest airport terminal in the region, in terms of capacity being South Africa’s OR Tambo’s central terminal, with a capacity of 12 million passengers followed by Egypt’s Cairo airport terminal three with a capacity of 11 million and Sham-el Sheikh, also

in Egypt, with 7.5 million. The new terminal Phase 1 building was to be 178,000m² providing 50 international and ten domestic check-in positions, 32 contact gates and eight remote gates. The terminal apron was to provide 45 aircraft stands with flexible provision for narrow body and wide body aircraft and a taxiway system that will also connect with a future second runway. The terminated project had been designed to include construction of a four-level terminal building consisting of a central processing area, a transit hotel, landside retail centers, arrivals and departures plaza, also ancillary facilities which included an access road, car parking, access taxiways, Ground Service Equipment and bus parking areas. KAA however pointed out that it remains confident that the ongoing modernization and expansion of the JKIA hub is adequate to positioning the airport as the aviation gateway for the East African region.

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NEWS

NEWS

RwandAir partners with AFRAA to organise aviation convention in Rwanda

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viation stakeholders will meet in Kigali, Rwanda from 07-09 May 2016 at the 5th Aviation Stakeholders Convention. The conference is being organised by the African Airlines Association (AFRAA) in partnership with RwandAir with the view to fostering dialogue, building sustainable networks in supply chain management, creating a competitive environment for aviation business in the continent. Convened under the patronage of the Ministry of Transport and Infrastructure of the Republic of Rwanda, this important industry event in Africa has been endorsed by Rwanda Civil Aviation Authority and Rwanda Development Board and is expected to bring together about 400 participants consisting mainly of airlines, Civil Aviation Authorities, airports, Air Navigation Service Providers, ground handlers, regulators, aircraft/engine manufacturers, component suppliers, service providers in the aviation industry and other aviation stakeholders. According to IATA’s 20-year passenger forecast, Africa is set for strong expansion in air connectivity with passenger growth expected to average 4.4%. This growth in both passenger and cargo is spurred by huge economic growth and investments in many African countries. Aviation supports 6.9 million jobs and $80 billion in GDP in Africa and its important role in the continent cannot be understated. Building partnerships for the mutual benefit of the aviation industry is necessary in order to exploit the opportunities in Africa and overcome the huge challenges that

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abound in the continent. “AFRAA aims to bring together the suppliers of the whole range of aviation products and services and the potential customers of these products and services at one venue annually for purposes of networking, knowledge exchange, business negotiations and forging of win-win business relationships,” AFRAA Secretary General, Dr. Chingosho said. He added that the forum is a platform that facilitates the exploitation of opportunities in the continent by the various stakeholders with the view to ultimately improve the aviation support base in the continent. He paid tribute to RwandAir noting the airline’s important role in connecting the country to the African continent and indeed to the rest of the world. RwandAir Chief Executive Officer Mr. John Mirenge thanked the Association for choosing Remarkable Rwanda as the venue for the Convention. He said, “RwandAir is an important player in the aviation industry in the region. Staging the Convention at RwandAir’s home base and hub will be a great opportunity to further strengthen Rwanda’s place as an aviation country in the region.” He added that hosting the convention in Kigali is a great opportunity to showcase the country’s infrastructure and natural attractions for business, tourism, personal travel as well as a preferred destination for conference tourism. Convened under the theme “Winning Together through Innovation and Collaboration”, the conference is structured to incorporate presentations and panel

discussions on trendy subjects in aviation on one hand and on the other, the event shall allow for networking opportunities, one-to-one appointments and masterclasses facilitated by industry experts. There will also be an exhibition of products, solutions and services by aviation suppliers in different categories. Suppliers and/ or service providers will benefit from the outstanding visibility, networking and direct sales opportunities by displaying their products and interacting with delegates at the conference. The Convention will also provide an outstanding brand visibility and business opportunity for industry partners and suppliers of equipment, components, solutions and services. RwandAir is the official carrier of the event and is granting discounts on air travel for all delegates attending the Aviation Stakeholders Convention for all flights throughout its network. More information about the event and registration for participation is available on the dedicated event website: http://asc.afraa.org/. Among the proud event sponsors and exhibitors include: African Aerospace, Air Traffic and Navigation Services (ATNS), Bombardier, EgyptAir Training Center and MRO, Ethiopian Airlines MRO and Aviation Academy, Hahnair, Kenya Airways MRO and Training Center, Kenya Civil Aviation Authority, MTU Maintenance, Sabre Airline Solutions, SITA, South African Airways Technical and Training, Tunisair Technics, VIVO Energy Uganda and Wirecard Technologies GMBH.

Procurement & Logistics Management | Jan - Feb 2016

Procurement & Logistics Management | Jan - Feb 2016

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Kenya partners with China for SGR from Nairobi to Malaba

K

enya and the China Communications Construction Company (CCCC) have signed an agreement for the construction of the Naivasha-Malaba Standard Gauge Railway line under the Kenya SGR Developments Project valued at Sh549 billion. The Kenya Railways Managing Director Mr. Atanas Maina signed for Kenya while the Vice President for China Communications Construction Company Mr. Wen Gang signed for the Chinese Company. The contract will enable the two companies collaborate on the conducting of a feasibility study for the Nairobi to Malaba section of the project; facilitate transfer of technology; and creating of skills and capacity for construction, maintenance and operation of the railway upon completion. The commercial contract entails four elements namely Naivasha – Kisumu section, Kisumu Malaba section; Kisumu Port Development; and modernization and expansion of the Inland Container Depot (ICD) at Embakasi in Nairobi. Speaking at the signing ceremony,

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the Cabinet Secretary for Transport and Infrastructure Mr. James Macharia said that the signing of the contracts paved the way for the more progress to be made especially regarding the identification of the financing aspect of the project. “I am delighted to be part of this development this evening. The Cabinet, at its meeting held on 23rd March 2016, approved the signing of Commercial Contracts for the development of Naivasha/ Kisumu / Malaba Section between Kenya Railways and China Communications Construction Company Ltd (CCCC) to facilitate the process of identifying suitable financing for the project on a Government to Government platform. As you already know, the project itself is a very massive undertaking for the country hence why we had to construct the line in phases. We are happy with the progress and even as we sign the commercial contract for the second phase we are confident that we will be able to deliver the project” he said. Those present at the signing ceremony were

the Principal Secretary for Transport Mr. Irungu Nyakera, Kenya Railways Chairman Gen. (Rtd) J. Kianga, China Communications Construction Chairman Mr. Li Qitao, China Road and Bridge Corporation General Manager for the Mombasa-Nairobi SGR Mr. Sun Li Qiang along with other dignitaries from China Kenya, Uganda, Rwanda and South Sudan have signed and ratified a Protocol for the development of an SGR connecting the port of Mombasa to Kampala, Kigali and Juba. Kenya is therefore developing the Mombasa –Malaba section of the entire proposed network to Kigali through Uganda. Construction on the Mombasa to Nairobi section is at an advanced stage and the Government has secured a US$ 1.5 billion loan from the Government of the Peoples Republic of China to support the development of Phase 2A between Nairobi and Naivasha and construction will commence by the end of 2016.

Procurement & Logistics Management | Jan - Feb 2016

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Kenya Maritime Authority launches search and rescue boats

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he Kenya Maritime Authority (KMA) has acquired 3 search and rescue boats which will be dispatched in Lamu, Kisumu and Mombasa counties. One of the said rescue boats will be launched formally in Lamu on 24th February, 2016, at the new jetty in the presence of Lamu County officials, KMA Board of Directors and stakeholders. The boats will aid in search and rescue missions in the entire Lamu region and adjacent islands as well as boost the Authority’s collaborative efforts in maritime safety and security matters in the community. The acquisition of the said boats is timely for the Authority considering its crucial role as a regulator in the maritime industry and the need to set practical relevant examples on water safety issues. The boats will also play a vital role in enhancing the Authority’s collaborative efforts

The boats will aid in search and rescue missions in the entire Lamu region and adjacent islands as well as boost the Authority’s collaborative efforts in maritime safety and security matters in the community.

with other agencies like the Maritime Police and Kenya Wildlife Service’s in responding to distress calls at sea. In terms of enhancing maritime safety and security the boats will make a difference in the community by enhancing safety of life at sea. The boats will also aid in security patrols on water. The Authority will also have the chance to experience the challenges Kenyan boat operators face daily on the nation’s waters and thus enable it to address boat operators concerns more effectively. The Authority will also boost its experience and strategies in the operation of search and rescue boats and reinforce its maritime safety and security role, and improve the quality of its services to the public.

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Procurement & Logistics Management | Jan - Feb 2016


NEWS

DHL Sees Africa's Potential

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HL Express Sub-Saharan Africa managing Director Hennie Heymans says that DHL firmly believes that the African continent is still one of the last frontiers for growth. He said the region will continue to grow as it has over the past decade due to the vast number of unexploited opportunities available for local and foreign investors."The drop in GDP growth for the region over the past year shouldn't deter investors. Africa will continue to thrive, albeit, at a slightly slower pace as previously experienced. "Similar to the global environment, which reported growth of 2,4 percent in 2015 (down 0,2 percent year on year), it was a tough year economically for Africa. Over the past few years, Africa has been top of mind for foreign business investment, often referred to as one of the last frontiers for economic growth and development. However, given the recent economic downturn and headwinds that the continent is experiencing questions have risen

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whether the region is still offering opportunity to investors. The World Bank's January 2016 Global Economic Prospects(1) reported that SubSaharan Africa's real Gross Domestic Product (GDP) grew at its lowest rate since 2009 in 2015 with a growth of a 3,4 percent. This was down from the 4,6 percent and 4,9 percent growth that was reported in 2014 and 2013 respectively. "Compounded by a drop in the demand for the continent's commodities resulting in falling prices, declining currencies, political instability and El Nino causing widespread drought, have all contributed to the region's challenges. However, despite this, the region remains abound with untapped prospects and offers growth opportunities in 2016 for those willing to seek them out," said Mr Heymans. This is supported by the latest World Bank' Africa's Pulse(3). Author and Acting Chief Economist: World Bank Africa Region, Punam

Chuhan-Pole, said on the report's findings: "The good news is that domestic demand generated by consumption, investment, and government spending will nudge economic growth upwards to 4,4 percent in 2016, and to 4,8 percent in 20173". The report (2) also highlights that specific regions have higher growth prospects than others. Cote d'Ivoire, Ethiopia, Mozambique, Rwanda and Tanzania were listed as countries expected to sustain a growth of approximately 7 percent per year in 2015-17. This was largely attributed to largescale investment into energy and transport projects, consumer spending, and investment in the resources sector. Mr Heymans said that based on DHL's experience, each country offers unique growth opportunities. "For example, in Ethiopia, the telecommunications sector is a large contributor to GDP. It was reported that the country had 40 million mobile subscribers and 10 million internet connections in 2015. However with a population of over 90 million, the sector has capacity to double its contribution to GDP. In Mozambique, the retail sector is offering huge opportunities. With a growing middle class and shopping culture, coupled with a limited availability of common products, this sector offers opportunities for both small and large businesses." "With Rwanda's ambition to become a regional ICT (Information and Communications Technology) hub, there has also been a stronger demand for communication devices and ICT-related equipment. Similarly, we've seen an influx of medical supplies in the country with a booming healthcare sector." Mr Heymans added that more countries in the region could be thriving if not for underdeveloped infrastructure and bureaucracy. He points to the mining sector in Madagascar as one example. "This could be a potentially lucrative opportunity for investors due to the country's coal, nickel and ilmenite resources, however several legislative reforms are still needed. "The opportunities are clearly there, it's all about having a long-term, sustainable focus on the region. As we move into the second quarter of 2016, DHL Express will continue to invest in the SSA region, in our people and our network, with the ultimate goal of seeing Africa thriving," concluded Mr Heymans.

Procurement & Logistics Management | Jan - Feb 2016


NEWS

Maersk Oil to close Houston office

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anish oil company Maersk said it would manage its U.S. assets in the Gulf of Mexico from Copenhagen as it moves to shut down its offices in Houston. Directly employing about 60 people in Houston, Maersk said it was closing its offices in Houston in an effort to streamline corporate operations. Its holdings in the Gulf of Mexico would be managed from an office at the company's headquarters in Copenhagen. "We recognize that this is an unsettling time for our people, to whom we offer full support throughout this process," Chief Operating Officer Gretchen Watkins said in a statement. Many energy companies working in the United States have their headquarters in Texas. Oil field services company Halliburton, which is based in Houston, in February said it was cutting its workforce by about 5,000 because of "ongoing market conditions." The economy in Texas is diversified by a strong manufacturing sector, though a report from the Dallas Federal Reserve said the state is facing headwinds because of pressure from

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Maersk Drilling said it landed

time when businesses servicing the exploration and production side of the energy sector face

a dozen new contracts last

pressures from lowered industry spending

year, though the industry

collapsing in mid-2014.

that's developed since crude oil prices started

pressures were apparent. Day rates were revised sharply

Maersk Drilling said it landed a dozen new contracts last year, though the industry pressures were apparent. Day rates were revised sharply

lower given the weak oil

lower given the weak oil economy.

economy.

operations in Angola, leaving only a handful of

Elsewhere, Maersk Oil said it was trimming employees behind to manage its Chissonga

lower crude oil prices. Labor markets, the Dallas Fed said, continued to face pressure as 12 percent of the firms surveyed said they were hiring, against 22 percent reporting net layoffs. Maersk suffered a blow in early 2016 when Norwegian energy company Statoil canceled a contract with the Danish company's drilling unit. The cancellation from Statoil came at a

oil project in the West African country. Like many other deepwater projects, Watkins said restructuring options were necessary during the downturn. "This difficult decision does not diminish our keenness to pursue the Chissonga project sanction in due course, provided we can achieve an attractive return on our investment," she said.

Procurement & Logistics Management | Jan - Feb 2016

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NEWS

NEWS

Do you know how damaging leaking pipes can be!!!!!

When it is CPVC Pipes You are 100% safe & sure. Major solar farm to be constructed in Garissa

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enya, this month unveiled plans to construct East Africa’s largest solar power plant in the North Eastern town of Garissa. The Rural Electrification Authority (REA), the agency that will build the solar farm, said the Sh12.8 billion plant will produce enough power to light up 625,000 homes. The construction of the 55-megawatt (MW) facility is expected to start July and will take 12 months to complete. Power from the plant will be injected into the national grid as part of the plan to wean the northern town off its reliance on expensive thermal electricity and boost economic activity. Electricity from the plant will retail at Sh12 ($0.12) per unit or about Sh6 lower than dieselgenerated power. “We are going heavy on renewable energy for faster electrification of off-grid areas and households,” REA chairman Simon Gicharu said at a press briefing in Nairobi. Solar experts reckon that Kenya, like most African nations, has a high potential to generate

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solar energy given high radiation levels from the sun throughout the year. The intensity of sunlight, not heat levels, determines solar electricity production. Kenya has more than 300 days of sunshine per year, double Germany’s — which is the global leader in solar energy production with an installed capacity of more than 40,000 megawatts. Kenya’s total power capacity stands at 2,294MW, with solar power accounting for less than one per cent. The solar farm, with 210,210 solar panels, is expected to be the largest in East and Central Africa and will be constructed by China Jiangxi using a Sh12.8 billion loan from China’s Exim Bank. It will be located 20km from Garissa town and is expected to create 1,000 jobs during the construction period. Mr Gicharu said that apart from generating cheap electricity, the solar farm is expected to cut Kenya’s carbon emissions by an estimated 43,000 tonnes per year for trading in the global carbon market. REA said

solar energy offers Kenya the shortest route to lighting off-grid towns that have for long relied on expensive diesel generators to produce electricity. The agency plans to set up 100 small solar plants in off-grid towns, with the aim of lighting up the majority of homes in the next financial year starting June. The target towns include Mandera, Garissa, Turkana, Wajir, Lamu and Tana River. Mr

P. O. BOX 18141-00500, Masai Road (behind Libra House) Tel: 020 2421994/ 0735 817075 Email: sales@astralcpvc.co.ke / Web: www.astralcpvc.co.ke

Gicharu said connecting off-grid towns by stretching the national grid would take longer and gulp enormous resources, making solar the most viable alternative. The Jubilee government in 2013 set an ambitious plan to install additional 5,000MW to the grid by end of next year from renewable sources like geothermal wells, solar and wind farms. Kenya targets to connect all homes to power by 2020.

Procurement & Logistics Management | Jan - Feb 2016

Procurement & Logistics Management | Jan - Feb 2016

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COVERSTORY

African Airports in massive expansion

agreed in a recent Modern Airports Africa Conference in Entebbe that there is need for Africa to invest in its infrastructure to cater for growth at her airports. In 2014, the Center for Aviation (CAPA), identified lack of passenger capacity volumes in Africa, high transportation costs, safety, constrained capacity and slow privatization as among issues affecting growth of the sector. But it is the high amount of expenditure required for the modernization of airports or completion of new projects that could spell a major setback for Africa ambitious plans. This coupled with fluctuations in oil prices is set to delay expansion plans. Projects Despite the challenges, African countries have embarked on aggressive airport expansion plans that are set to see the continent revolutionize its aviation industry. In 2014, Africa initiated 40 new airport projects in a bid to expand its airport infrastructure. The continent also expedited privatization of airlines. For instance, Angola spent US$2.1 billion on airport construction. Nigeria on the other hand, is planning to spend US$1.07 billion. Tripoli has set aside US$2.1 billion for airport construction projects while Algiers has set aside US$952 million. Kigali is set to spend US$650 million and Cairo USD18.5 billion. Meanwhile, Lusaka is planning to spend US$500 million in airport construction projects.

Majority of airports in Africa are undergoing expansion in a bid to cater for rapidly growing passenger and cargo traffic volumes. By Anthony Kiganda

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ooming tourism and renewed interest in investing in Africa by foreign companies has left many countries struggling to boost the capacity of their airports. For instance, between 2011 and 2012 business activities at African airports rose from 45% to 80%. This trajectory has largely been attributed to the growth of the continents GDP of 6.1% contrary to the global estimation of 5.8%. According to Nick Fadugba, the chief executive of African Aviation Services Limited, the African airports should restructure to facilitate commerce and tourism within and out of the continent. This he notes will foster sustainable development. However, there are a number of challenges facing governments and airport authorities as they seek to enhance airport facilities.

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Interconnectedness For example, they have to grapple with the issue of interconnectedness among African states in order to increase performance and efficiency. In recent years, the International Air Transport Association (IATA) has been at the forefront in urging African governments to open up their airspace, reduce levies and speed up airport expansion. Raphael Kuuchi, IATA’s Vice President for Africa says that increased intra-African air connectivity is essential if Africa is to seize the opportunities for development. “It is absurd that it is possible to travel 13 times a week from Nairobi to London yet impossible to travel directly from Nairobi to Dakar,” he quips Higher taxes and tariffs have been blamed for hampering interconnectedness among the various countries in Africa. The continent has been especially faulted for failure to heed the

Yamoussoukro Declaration an accord that calls for fewer restrictions on cross border travel. Financial support Mr Fadugba reckons that the African aviation industry is still struggling because government support including subsidies is rare leaving then with less capacity to finance their expansion plans. His thoughts are similar to those of Hemant Mistry, director of Airport and Fuel at IATA. Mistry is worried over how emerging airports are designed. “The way new airport capacity is being developed is of growing concern in many parts of the world. In Africa often the working arrangements between the airport authority, the government and airlines are fragmented and much of the investment does not fully deliver the necessary improvements,” he reveals

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“Many international airports are "full". Some airports are operating almost perpetually at full capacity, and others do have additional capacity, but not at the times when people want to fly.” In a 2014 African Aviation Summit held in June 9-13 last year in Ethiopia, Jean-Louis Ekra, President of AFREXIMBANK said there was need for African governments to increase funding of modern aviation infrastructure. And in a report released last year by the Brooks Market Intelligence – dubbed Airports in Africa: Capital Investment Programs 2014 observes that, investments in airport infrastructure in Africa has been hampered by decades of underfunding and regular change of leadership. Safety Another hurdle that the African aviation industry is grappling with is the issue of security of its airspace. This has been exacerbated by accidents recorded in Africa, with the continent recently recording accidents higher than the global average. Partly to blame is inconsistency and slow pace of adoption of international-level security and safety standards and related regulations. Experts

Ethiopia In Eastern Africa, Ethiopia has launched major infrastructure projects designed to expand the capacity for handling passengers passing through its capital’s airport. According to a recent report, the project will cost US$340m against the earlier anticipated cost of US$225m. The project is being undertaken by China Communications Construction Company (CCCC) and will see the airport handle 20 million travelers yearly. Ethiopia is also planning to spend US$ 64.5m for construction of airports in Hawassa, Robe Goba and Shire, with construction for terminals scheduled to take place this year. The country has already called for bidders to undertake the Hawassa airport project. The Ethiopian Airports Enterprise (EAE) also awarded a US$29m contract to Afro-Tsion Construction Plc for the construction of Jinka airport. Tanzania In Tanzania, plans are underway to expand and renovate Kilimanjaro International Airport at a the cost of US$40m, which will see the airport handle more passengers and airlines. The airport upgrading project will involve construction of new terminal

Procurement & Logistics Management2016

buildings, runways, aprons and taxiways, with completion expected by 2017. The project, which has already been awarded to BAM International of Netherlands, will also entail installing of floodlights and new airfield ground lighting. Kenya Kenya’s Jomo Kenyatta International Airport (JKIA), East Africa’s busiest airport is on an ambitious expansion drive. The African Development Bank has funded the construction of a new terminal at Jomo Kenyatta airport, a project expected to cost US$ 612m. Additionally, the country is planning for the construction of a US$14.8m airport complex at Mombasa’s Moi International Airport. Upgrade of Turkana’s Kapese airstrip for commercial ventures is also in the pipeline. In a move that is set to see East Africa boost its air connectivity, Uganda is planning to expand Entebbe airport at a cost of US$400m, while Rwanda seeks to spend US$1bn for the Busegera International airport and upgrading of Kamembe airport at a cost of US$5.9m. China Road and Bridge Corporation Company which was awarded the contract was targeting to complete the upgrading in six months from December 2014. Construction of Busegera airport would give rise to the largest International Airport in the country, having 4.2 kilometer-runways and a passenger terminal that would handle 1.8 million passengers annually. The project, set to be completed in 2017 would also have a cargo terminal. In the South of Africa, Namibia has kicked off with rehabilitation of Ondangwa Airport Runway, a project being undertaken by China State Construction Engineering Corporation. Chief executive officer of Namibian Airports Company (NAC) Tamar El-Kallawi said it was a great milestone for the country’s aviation industry. "We are strategically positioning ourselves by upgrading our airport infrastructure to meet this need. This will also create much needed employment for Namibians," he said. Zambia Zambia has also planned for construction of a passenger terminal building at the Kenneth Kaunda International Airport. The renovation building will cost US$385m and contractors were reported to already have gone on site in February. The country was also set to undertake construction of Simon Mwansa Kapwepwe Airport in Ndola at a cost of $522 million in order to handle 2 million passengers. Construction of Harry Mwaanga Nkumbula International airport had entered the final phase, a project that will see the country get an ultra modern facility at a cost of US$40m.

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FEATURE China, “you will notice an array of expensive houses targeting high end buyers” With low uptake of mortgage in Kenya, he foresees a situation where people at the bottom of the economic pyramid are unable to own a house. International Green Structures is a US based innovation company that leverages on technology to offer cheap houses and in a short period of time. The company began constructing several houses in the US but decided to venture into Africa after realizing a dire need of affordable housing in the continent.

Is offsite construction the perfectly timed solution for Kenya? The call for a quick and sustainable solution to the current housing shortage has created an opportunity for offsite construction to become a key building method to meet demand. By Sandra Dinga

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frican countries are facing an enormous challenge of housing their citizens. The situation has been worsened by increasing rural-urban migration in majority of these countries. A World Bank report of 2013, shows that Urbanization in Africa has largely been translated into rising slum establishments, increasing poverty and inequality. Closer home, Kenya has a deficit of 200, 000 housing units annually according to the Ministry of Land, Housing and Urban Development. In a bid to curb the ever mushrooming slums and informal sectors in Africa, governments and housing stakeholders have suggested the adoption of offsite construction to build more affordable houses. Richard China President and Chief

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Executive of International Green Structures (IGS) says that although the housing problem in Africa is acute, the situation is not doom and gloom.

IGS building material meet national and international building codes and are KEBS certified. Satisfied with the building technology the government gave IGS green light to venture into the Kenyan market.

Entry into the Kenyan market China who recently addressed a summit in Nairobi on affordable housing in East Africa, says that his company-IGS, seeks to offer affordable houses to people especially in rural areas. In 2014, the company announced its entrance into the Kenyan market with a KSh527 million investment. But why did IGS decided to venture in Africa particularly in Kenya? China shares that the statistics on affordable housing in Kenya is getting worse and there is need to urgently address the issue. “If you take a drive on several major highways in Nairobi,” says

Procurement & Logistics Management | Jan - Feb 2016

Agriculture residue Asked how IGS is able to construct cheap houses and in a very short period of time, China responds: “We convert agricultural residue into durable panels and pair it with our preengineered framing system,” “Our environmentally-sustainable structures can be easily transported from a manufacturing facility and assembled into a house in a matter of days using local labour.” China says that it is this ability to build a house using IGS materials in 30 days for instance that can enable production of houses enmass. For example, a 50sqm 2 bedroom house can be completed in 30 days at a cost of approximately Ksh1.3m. IGS building material meet national and international building codes and are KEBS certified. For instance in Kenya, IGS intends to work with wheat and rice farmers in Eldoret. IGS will buy wheat and rice wastes from farmers and use the same to construct affordable houses in the area. The straw from wheat and rice are up cycled into a Compressed Agricultural Fiber (CAF) Panel. The innovative manufacturing process creates rigid, thermo-set panels whose durability equal or even exceeds brick and mortar. CAF Panels are also incredibly energy efficient with natural thermal and sound attenuating properties. Additionally the material is also fire, water, mold and pest resistant. Boosting rural economies It is a green innovation that stands out. Apart from constructing affordable houses, the company prides in boosting the economies of rural areas. “We economically empower farmers in rural areas by buying agricultural residues from them,” reveals China. Keen to avoid repeating mistakes done by players in affordable housing sector, IGS is erecting a state of the art factory in Thika that will be used to process agricultural wastes to make building materials. The first phase of the manufacturing facility will cost US$6.2m. However, when complete, the factory will have cost US$14m to construct. IGS move to construct first factory in Kenya makes it the first company offering affordable building solutions using sustainable and renewable materials to do so. It is expected that IGS will create jobs to thousand of youths

especially when mass production of houses commences. China notes that part of the reason why Alternative Building Technology has not gained traction across Africa is because the material is imported. After the construction of the factory is complete, IGS hopes to begin mass production of affordable housing in the country a move that its CEO believes will help tackle the issue of inadequate housing in Kenya and East Africa in general. IGS housing innovation is quickly gaining momentum in Africa and beyond. Owing to its eco-friendly processes and economic impact it has for local people where the organization works, the organization can only grow in leaps and bounds. Vanuatu housing project In August this year, IGS started building 2000 affordable houses in Vanuatu after Cyclone Pam devastated the Pacific Island Chain in March 2015 leaving residents without adequate power, housing, food and water. The project received a nod from Vanuatu National Housing Corporation after IGS emerged as the only green oriented company that could produce several houses urgently required by residents and at affordable cost It is a housing model that can be adopted where there is need for rapid response shelters. For instance, areas that have been hit by hurricanes, earthquakes and other natural disasters can benefit greatly from IGS housing model. IGS is also involved in the construction of several houses in Guatemala, Rwanda, Nigeria, Uganda and Kenya. `

In Kenya IGS has already showcased what affordable housing can be like. The company constructed 46m², 2 bedroom house in Industrial area. Satisfied with the building technology the government gave IGS green light to venture into the Kenyan market. IGS solar plans China says IGS ultimate goal is to ensure that houses built the company are also power sufficient. In this regard, the company has come up with IGS Solar, a model that will connect house to power tapped from the sun. “No country can develop or industrialize without sufficient power supply,” notes China In Africa, China observes, solar power will never fail considering that most countries in the continent receive constant sunlight throughout the year. In a bid to keep up with the spirit of providing water to people, IGS plans to recycle water in their building plan that can be reused. IGS also intends to partner with sustainable agriculture stakeholders to enable farming in IGS building plan. “We may not be a complete solution to affordable housing in Africa, but we hope that our efforts will help tackle the issue and consequently receive the support it requires,” China concludes.

Delivery of construction materials to site.

Procurement & Logistics Management | Jan - Feb 2016

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FEATURE there is no need for ceiling material. The shingles are long lasting and widely used in Europe. Over the years, Italbuild began importing sand coated metal roofing products. Contrary to common metal roofing products available in the market, the sand coated metal roofing products imported by Italbuild protects against Ultra Violet lights since they are light reflective and water can be collected. Additionally they never fade. With several projects under its belt and with 19 years of trading behind it, Italbuild has grown to become a true leader in its field. Some of the projects that the firm has completed successfully include New Malindi Law Courts,Hilton Hotels, Sopa Lodges,Serena Hotels among others. Italbuild continuously offer training to contractors and its employees on current and emergingroofing products. Understanding the various roofing products, says Adatia, is paramount when deciding what type of roofing products to buy. His sentiments are echoed by Martin Munene who is marketing manager for Sai Raj one of the leading roofing firms in Kenya. Sai Raj stock a wide array of PVC roofing products which they say were introduced to counter the challenges experienced while using iron sheets. For example iron sheets are prone to rusting, heat and corrosion.

Trending roofing materials in Kenya Since time immemorial man has ensured that he has a roof over his head. Roofing products ranged from iron sheets to Makuti. But over the years, new roofing materials have emerged, tailor made to suite both style and purpose. We look at various roofing products in Kenya.

By Anthony Kiganda

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enyan roofing industry has been dominated by four types of roofing products namely clay tiles, Iron sheets, makuti and stone coated tiles. In rural areas, iron sheets are preferred because of their cheap prices. But in urban areas more advanced roofing materials like shingles are now being used. Against this backdrop, firms dealing in roofing products have restructured to keep up with the changing times. As companies jostle for the lucrative market of roofing products in Kenya, some firms have taken competition a notch higher by importing high quality products from Europe that are quickly gaining traction in the country. One such firm is Itabuild a leading roofing solution firm in Kenya. Karim Adatia has been the sales manager since the inception of the firm in 1997. Mr Adatia says that Italbuild seeks to redefine roofing solutions in Kenya by providing tailor

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As companies jostle for the lucrative market of roofing products in Kenya, some firms have taken competition a notch higher by importing high quality products from Europe that are quickly gaining traction in the country. made products that stands the test of time. “We have introduced into the Kenyan market cutting edge roofing solutions that have transformed roofing in the country,” says Mr Adatia.

Shingles An interior designer, Adatia says that it all began in 1991, when he was a contractor for another company. He was given a task of roofing a building in Malindi. His directors imported from Italy bituminous stone coated shingles called Tegola Canadese which they then used to roof the building. It was the first time Tegola Canadese was being used in East Africa. Amazed by the outcome, most people wanted to know how they could get the products. To satisfy the need, Adatia teamed up with his directors and co-founded Italbuild specializing in roofing products. Later on, the firm diversified to offering waterproofing solutions and interior design services. Although roofing is an important aspect of a building, most people are ignorant of qualities of a good roofing product. Shingles for instance, are flexible and can be designed in whatever shape as a client may desire. With shingles a house owner is guaranteed of more space as

Procurement & Logistics Management | Jan - Feb 2016

PVC roofing materials The PVC roofing materials are used in commercial buildings and factories’ go-downs. PVC roofing materials have especially gained traction in companies that deal with chemicals. Metal sheets can react with some chemicals causing harm to workers. PVC are plastic-like products that come in different shapes and non-reactive to any substance. Clear polycarbonate sheets on the other hand are designed to allow light inside a building especially when natural light is required. The sheets can withstand force and are virtually unbreakable. The UV blockage is another huge advantage of these panels, making them the perfect material choice for constructing awnings in commercial buildings. As the panels are extremely light in weight, they can be easily transported and installed wherever they are required. These panels are resistant to heat, sunlight, snow, and rain, which enable them to last for many years without fading or discoloring. Sai Raj also stocks PVC ceiling boards which initially were being imported from China. But the need to provide tailor made quality products inspired the firm to start manufacturing its own PVC ceiling boards. PVC ceilings are durable and sturdy. While they are not the most attractive ceiling options ever, they will last for a very long time and require very little maintenance as well. But PVC ceiling boards are a bit expensive due to production processes. However Sai Raj gives clients a warranty once they buy their products. “We manufacture PVC sheets and PVC ceiling boards locally but we continue to import polycarbonate sheets from top notch manufacturers in Thailand and China,” says Munene. But ignorance among Kenyan consumers have hindered major uptake of PVC sheets. For instance, some people have the notion that the sheets are plastic and could compromise on their security. For this group of people, iron sheets are their preferred choice of roofing products. “For those constructing residential houses security comes first and so they still believe on iron sheets to serve that purpose. But we have taken time to organize for seminars to educate our clients on the advantages of PVC sheets over the normal metal sheets.” Before venturing into roofing products Sai Raj was involved in fibre glass products, furniture and flower pots. The firm then diversified into car accessories and later into roofing products. Formed in 1975, the firm has grown over the years perfecting their product offering. Their clients range from contractors, architects, hardwares and several end users. Their products have distinct labels of déco roof to differentiate them from other products in the market. This, Mr Munene believes, will help clients make informed choices when buying Sai Raj products and further counter counterfeit challenges. Procurement & Logistics Management | Jan - Feb 2016

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FEATURE specification on how a lubricant should be used for a particular equipment or machine. However, frequency of use can also be a major determinant. A machine that is frequently used would require more lubricant compared to the one that is rarely used. The load capacity of a vehicle or equipment is also another factor to consider while using a lubricant. However, the quality of a lubricant plays a major role in determining its performance. For SepYana, a high quality lubricant is the one that can be used worldwide regardless of environmental differences. The American Petroleum Institute which oversees the quality of oil has certified SepYana lubricants as fit to be used around the globe. “You have to prove that the product conforms to international standards for it to be certified reveals Muinamia.” SepYana has a laboratory where their products are tested for quality before being released to the market. A Lubricant is a mixture of base oil and additives .Base oil takes a huge chunk of it and is mostly imported. But a point to note is that all lubricants can generally look similar but the difference emerges on performance. Muinamia cautions especially a case where lubricants are recycled. When a lubricant is recycled, he says, its performance significantly drops to the detriment of

SepYana: The essence of oil and lubricants In recent years, East Africa has emerged as a major export destination for lubricant products from the United Arab Emirates. The growing demand of the products has attracted several firms that want a piece of the lucrative venture. SepYana is one such firm. By Veronica Muthoni

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he firm which began its operation in 2009 manufactures a wide range of tailor made products for their clients. The company mainly makes lubricants for automotives and for industrial use. The company rides on its ability to manufacture top-end lubricants to assert its presence in Kenya and beyond. But ignorance among users has continued to be a hindrance in advocating for high quality lubricants. Timothy Muinamia a sales and marketing manager at

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For SepYana, a high quality lubricant is the one that can be used worldwide regardless of environmental differences. SepYana has a laboratory where their products are tested for quality before being released to the market.

equipment. Viscosity When purchasing a lubricant, several factors should be considered. Moses Macharia a Quality Assurance supervisor at SepYana says that viscosity is a major parameter in determining the quality of a lubricant. The viscosity of a lubricant is a measure of its resistance to gradual deformation by friction. The viscosity of lubricant is determined by the Society of Automotive Engineers (SAE). And it is for this reason that the abbreviation SAE is used to denote viscosity grades. “Oils can be separated into multi-grade oils and mono-grade oils. Multi-grade oils must fulfill two viscosity specifications, their viscosity grade consists of two numbers, for example 10W-40: 10W refers to the low-temperature viscosity ("Winter") while 40 refers to the hightemperature viscosity,” says Macharia. Currently, most automotive engine oils are multigrade oils, while oils for restricted usage, e.g. for seasonally used engines like lawn mowers, are often monograde oils. Macharia says that a good lubricant is the one that can be used in a variety of temperatures. SepYana trains users how to use their products. The company also advises clients to wear protective devices if handling oil for a long time.

Volvo Certification In 2015, their product RadiX CT 500 SAE 15W40 API CI4/SL received VOLVO certification that was a major boost for their growth. “It is a key milestone for us, the Volvo approval has led to a significant increase in our sales,” says Macharia. The Volvo certification came in the back of an ISO 9001:2008 certification that was accorded to SepYana in 2008. Receiving the certification is not a walk in the park. The International organization for Standardization looks into a whole chain of management, administration and production in a firm before issuing its certification. Despite the gains, sepYana has several hurdles that it says it counters heads on. The flooding of cheap lubricants into the country is key challenge. The problems emanates from importers who declare the imports as raw material for manufacturing lubricant. However, they turn out to be finished products. “What this means is that the products declared as raw materials get a tax relief and hence their cheap prices in the market,” says Macharia.

Telephones : (+254-20) 3749327 / 3740590 / 3748889 / 2680055 / 66 Mobile : (+254) 729 406 400 / 736 216 338 Fax : (+254-20) 37444890 Postal Address : P. O. Box 48364 - 00100 Nairobi, Kenya. E-mail : orientalnairobi@yahoo.com / oriental@orientalconstructionkenya.com Website : www.orientalconstructionkenya.com

SepYana says that understanding different dynamics about lubricants is a major step forward towards ensuring that users get full benefits from a lubricant. Original Equipment Manufacturer “The type of lubricant and its application mode largely depends on the equipment manufacturer and the frequency of its use,” discloses Muinamia. This is what he calls; Original Equipment Manufacturer (OEM). In most cases, the equipment manufacturer has

Procurement & Logistics Management | Jan - Feb 2016

Procurement & Logistics Management | Jan - Feb 2016

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TECHNOLOGY

Technology firms continue not to advance women, study shows TECHNOLOGY companies have disrupted other industries with apps that dispatch cars, housekeepers or pizzas in a matter of minutes. But tech firms lag behind those old-line businesses when it comes to advancing women.

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hat is the main finding of a McKinsey and LeanIn.Org report on the status of women in tech. Not only are women underrepresented at all levels of technology firms, particularly in key engineering, product and finance roles, researchers found, but plenty of those women also believe that their gender is holding them back at work. Big companies including Cisco Systems and Microsoft are tackling the talent pipeline, investing in programmes to encourage and mentor girls and young women studying science, technology, engineering and math fields that typically launch tech careers. Researchers found that women make up 36.8% of entry-level workers in tech; in other

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For SepYana, a high quality lubricant is the one that can be used worldwide regardless of environmental differences. SepYana has a laboratory where their products are tested for quality before being released to the market.

industries, women account for nearly half of entry-level workers. Yet the data, gathered from 26 tech companies and a survey of about 9,000 male and female employees, suggest that women currently in tech feel pessimistic about the climate in their companies. Some 29.9% of female tech employees polled said they felt gender played a role in their missing a promotion or raise, and 37.1% of female tech employees said they felt their gender would disadvantage them in the future. In nontech fields, a smaller share of women — 21.6% and 22.8% respectively — felt that way. Some female executives say that stems from a paucity of women leading tech companies. "If you can’t see an example of what you could

Procurement & Logistics Management | Jan - Feb 2016

be, you really aren’t going to have that extra incentive to break through any types of barriers," said Julia Hartz, co-founder and president of online ticketing platform Eventbrite. At a Wall Street Journal event in San Francisco on Monday, several prominent tech executives said the most effective way to create a more diverse workforce was for the heads of technology firms to lead by example. Padmasree Warrior, US CEO of electric vehicle startup NextEV, said she would ask her recruiting team daily for a list of diverse candidates. Now her team tells her who the candidates are without her needing to ask, she said. Facebook and Pinterest have tried an approach known as the Rooney Rule, which requires that at least one woman or underrepresented minority be interviewed for open jobs. The Rooney rule was born in the National Football League as a way to ensure that teams interviewed minority candidates for headcoaching jobs. Cisco is ensuring that job candidates encounter at least one interviewer of their same gender or ethnicity, a practice that has resulted in a roughly 50% increase in the odds a woman will be hired for a given position, said Ruba Borno, a Cisco vice-president and chief of staff to CEO Chuck Robbins. About 36% of female tech employees hold product-development or engineering roles, according to the data, versus about 57% of men. Hearsay Social, a maker of predictive-analytics software for companies, wants to equip more staff, including women, to take on such roles, said Clara Shih, its co-founder and CEO. Hearsay has begun holding an in-house coding academy for employees; two customer-support representatives, both women, have switched to software-engineering roles as a result, Ms Shih said. The data builds on Women in the Workplace, a 2015 McKinsey and LeanIn study that tracked the progress of women in 118 firms across industries and polled tens of thousands of men and women about the issues surrounding women in corporate life. Both men and women in the tech industry face challenges balancing work and family. Among tech employees, roughly 40% of men and women said their jobs made it harder for them to do things for their families. Netflix and Amazon.com, among others, have introduced new parental-leave benefits, in part to allay those worries. Still, despite the generous new benefits, many women believe they will face setbacks at work for taking time off. Elisa Steele, Jive Software’s CEO, said she makes a point to meet with women who are pregnant at her company to emphasize that their jobs will be waiting for them when they return. Carl Bass, CEO of Autodesk, the maker of 3-D design software, agreed. "As a leader, it’s not about what you say, it’s about what you do, and employees sense it immediately. If you say it is fine to take maternity leave, but then don’t promote the person who took maternity leave, employees get the message," he said. The predominantly male cultures at many tech companies can make them lonely places for women, said Caroline Simard, senior director of research at Stanford University’s Clayman Institute for Gender Research, which works with companies to identify and root out gender bias. "When you’re the only woman in the room, such as in a top leadership position in a tech company, that feeling of isolation on a day-to-day basis can be difficult," Ms Simard said. The problem is compounded when women don’t find mentors among their company’s predominantly male leadership. Autodesk’s Mr Bass said men need to play a bigger role in mentoring women. "In too many companies, the role of mentoring women is left to other women," he said. Some men worry that; company efforts to help women get ahead will hurt men. "I have heard men say, ‘What about the boys? Are we putting them at a disadvantage?’" said Cisco’s Ms Borno, who acknowledges these concerns, but doesn’t feel they should carry the day. "Look, change is hard. We’re going to be facing that as an industry." Source: Wall Street Journal Procurement & Logistics Management | Jan - Feb 2016

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REPORT By Anthony Kiganda

A

Ms. Crystal Morgan noted that Kenya had an

Kenya still attractive to incoming cruise tourists, global conference told Kenya tops the list of Countries with attractive Ports and sceneries for cruise tourists sailing along the Indian Ocean Rim, a Global Conference on sea trade cruise was told recently.

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Procurement & Logistics Management | Jan - Feb 2016

unmatched product through the Port of Mombasa. She said Princes lines had done cruises to Mombasa in the past and there was an overwhelming demand from passengers who wished to make repeat visits.

ccording to key speakers during the just concluded four day Exhibition and Conference in Fort Lauderdale, USA, Kenya was on the right track by promoting cruise tourism under the umbrella of the Cruise Indian Ocean Association (CIOA). The four day Exhibition and Conference ran from 14th to 17th March 2016. The President of Inter-cruises shore side and port services, Mr. Mark Robisnson, Kenya has made notable comeback after piracy setbacks that discouraged cruise lines to the port of Mombasa for about five years. Mr. Robison, whose company deals in provision of comprehensive services for Ocean and River Cruise Lines, said Kenya needs to work more closely with other major countries in the popular itineraries in the region to be able to attract more cruise tourists. Speaking in the same venue, Mr. Chris Hayman, the President of the Seatrade Cruise Global, observed that having organized the first Africa sea trade Conference in Durban in 2012, there was a need for other CIOA members to volunteer hosting the event as one way of attracting key industry players especially the Itinerary planners for key cruise lines. The association which was represented during the conference and Exhibition by Kenya and South Africa, has other members drawn from Tanzania, Zanzibar, Mauritius, Seychelles, Sudan and Mozambique thus forming a perfect itinerary for cruise lines plying in the Indian Ocean region. The Director of deployment planning, Princes Cruises, Ms. Crystal Morgan noted that Kenya had an unmatched product through the Port of Mombasa. She said Princes lines had done cruises to Mombasa in the past and there was an overwhelming demand from passengers who wished to make repeat visits. She said deployment planning ensures that the itinerary is commercially attractive and competitive. Other key drivers of deployment, she observed, include the destination’s commercial appeal, competitive bed supply by hotels in the region, ship size and nautical limitations. Geography and weather considerations, existence of homeports and proximity to popular destinations also play critical roles in choice of an itinerary. Others are flight availability and costs, security, port congestion and availability of berths, port costs, and shore side activities and infrastructure and passenger sourcing, Other speakers observed that collaboration between Port Authorities and key stakeholders like the Counties, Tourism boards, and regulatory bodies were crucial in effective management of the cruise industry. There was also the need to ensure that the tourism sector including ports grow together with the cruise industry.

Procurement & Logistics Management | Jan - Feb 2016

Equally destinations must offer unique experiences both in the day and in the nights. There was a need to have waterfront facilities like restaurants to serve local dishes, casinos and duty free shops. The more the ships stayed the more they discovered shore excursions and nights are less crowded Kenya also participated in the exhibition under the Cruise Indian Ocean Association and was represented by the Kenya Ports Authority delegation led by the Chairman Major (RTD) Marsden Madoka. Major Madoka observed that there was a need for KPA to build a presentable cruise terminal now that the region has started regaining its lost glory in cruise tourism. The chairman also said KPA was upbeat and looking forward to working closely with key government agents in the sector and other stakeholders within East and South Africa region and the Islands to promote cruise tourism to this Part of Africa. Major lines that have deployed cruise vessels to Mombasa in the past include; • Crystal Cruises • Regent Seven Sea Cruises • Oceania Cruises • Cunard Line • Princess Cruises • Holland America Line • Norwegian Cruise Line The number of cruise lines and passengers had reduced drastically between 2000 and 2010 only to start rising again from 2014. In 2000, a total of 43 cruise ships with 19,675 passengers onboard called Mombasa Port. In 2005, this number reduced to 35 passenger ships carrying 12, 881 travellers. In 2010 the numbers were at their lowest, with only three ships calling with 1, 126 passengers onboard in 2015 the numbers rose to 5 cruise ships and 2, 905 passengers.

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