StartUp Magazine November 2018

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NOVEMBER 2018 STARTUPMAGAZINE.CO.KE

KSHS. 400/ USHS. 9000 TSHS. 6000/ RWF. 2200

BIOGAS

Fuelling energy revolution in rural Kenya

EGM SECURITIES Redefining online forex trading in Kenya

TAX ADVISORY Interview with Philip Muema, managing partner, Andersen Tax in Kenya

TRAVEL Gems of Magical Machakos

HOW PHILIP NYAMWAYA FOUNDED A THRIVING ONLINE PAYMENTS FIRM November 2018 Startupmagazine.co.ke

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Call us in the month of October for a free Coaching Awareness Session in your organization

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Contents

18 For the first time, Kenyans will have the opportunity to participate in global forex markets in a strictly locally regulated environment and at lower transaction costs thanks to EGM Securities.

Kevin Ng’ang’a, CEO

20 Juliet talks about how her firm-Green Spoon, aims to deliver healthy foods to Kenyans online

32 Group investment among millennials as an easier way to become homeowners

36 Gems of Magical Machakos

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November

2018

Contents 24 12

iPAY

M-Transfer How the firm aims to accelerate financial inclusion through its disruptive technology.

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Interview Philip Muema, Managing Partner at Andersen Tax in Kenya talks about his rich experience in tax advisory and the firm’s new mandate in the region

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Cover Story

Phlip Nyamwaya talks about his thriving online payment firm and how it helps businesses to process payments digitally.

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Biogas Learn how biogas is fuelling energy revolution in rural Kenya

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ICT and Government Connecting Kenya: AI as a government tool to accelerate manufacturing sector growth

Forex Trading For the first time, Kenyans will have the opportunity to participate in global forex markets in a strictly locally regulated environment and at lower transaction costs thanks to EGM Securities.

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Woman of Power

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Real Estate Group investment among millennials, is an easier way to become homeowners Cyber Security Why identity verification matters for mobile operators in Africa

Juliet Kennedy talks about her passion for food and why her firm-Green Spoon aims to dliver healthy food to Kenyans online

Coffee Break 22

My Hustle Collins Wabianga explains his secret to entrepreneurial success

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Travel and Leisure Book Review Blog Review Song Review

November 2018 Startupmagazine.co.ke

6 Managing Editor Sylvester Habil Okumu sylvester@startupmagazine.co.ke Associate Editor Adisa Hudson Oroni Tendera Contributors Sherry Zameer Joseph Kanyua Katherine St. Asaph Reuben Kimani Business Development Manager Washingtone Terry Aluoch Murrel Marketing Executive Irene Okoth Operations Simpson Ayodi Photographer Decorus Click Photography Creative Designer Kreative Hub Media

Published by Kreative Hub Media 4th Floor, Bihi Towers, Moi Avenue next to Bazaar.

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Tel (+254) 20-2088776 Cell (+254) 724 113 683 / (+254) 773 659 940 Email: info@startupmagazine.co.ke Website: www.startupmagazine.co.ke

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StartUp Magazine is published monthly. Copyright 2018 Kreative Hub Media. All rights reserved. No part of this publication may be produced or transmitted in any form including photocopy, or any storage and retrieval system without publisher's permission in writing.

The views expressed in this publication are those of the authors and do not necessarily reflect the position of the publisher. Readers are advised to seek professional advice before acting on any information contained in this publication.

Important Information for Contributors to StartUp Magazine By submitting content before publication you confirm that: (a) You (and/or other named contributors) are the sole author(s) of the content submitted; (b) The content you submit is orginal and has not previously been published (unless you specifically advise us on the contrary); (c) You haven't previously licensed the use of the content you submit; (d) So far as you are aware, the content submitted will not infringe any third-party rights, be defamatory or in any way illegal.

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Editor’s Pen

The disruptive digital economy The digital economy is developing rapidly worldwide. It is the single most driver of innovation, competitiveness and growth and it holds huge potential for entrepreneurs, small and medium-sized businesses (SMEs) as well as large corporates.

Here in Kenya, new digital trends such as cloud computing, mobile web services, smart grids, and social media, are radically changing the business landscape, reshaping the nature of work, the boundaries of enterprises and the responsibilities of business leaders.

These trends enable more than just technological innovation. They spur innovation in business models, business networking and the transfer of knowl-

edge and access to international markets.

How businesses adopt digital technologies will be a key determinant of their future growth. Businesses that fail to get digitally connected will become excluded not only from the local market but the global one as well.

In this special edition, we have identified key players in Kenya’s digital disruption and how they are revolutionizing the business landscape. Read through to explore the full advantages of new digital opportunities.

Enjoy your read! sylvester@startupmagazine.co.ke

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StartUp Stories

Letters to the editor “Entrepreneurship has no template, so you just brace yourself and enjoy the ride as you learn as much as possible.”

Barclay Paul Okari, founder, Impact Africa Industries 24-year-old Okari is the founder of Impact Africa Industries, a company that manufactures affordable, reusable sanitary pads in Kenya. He started the firm to solve a particular problem affecting young girls in rural Kenya. He once volunteered as a teacher at a girls’ school and immediately noted that many of them were missing classes monthly periods as they could not afford sanitary pads.

He therefore set out to develop Safi Pads, an affordable, washable and reusable sanitary towel. Okari also runs Kopa Kredit-a financial technology company that seeks to disrupt lending in Kenya by innovating how access to finance is done and how inclusive finance can work for the bottom of the pyramid of population leveraging mobile technologies.

“Everyone is a leader in something and everyone has unique capabilities to drive the nation into greatness.”

Entrepreneurship lessons The entrepreneurship edition of StartUp Magazine was nothing but a gem. I managed to get a copy and read insightful business lessons from two of Ethiopia’s most formidable entrepreneurs. We should work towards creating a sustainable for local entrepreneurs to thrive because they are the key to unlocking our unexploited potential.

Aya Misri Ethiopia, via Email

The subtle art of not giving a f*ck I read your book review in the past edition and it influenced my life in a major way. In the book, Mark Manson is as pragmatic as ever. Finding something important and meaningful in your life is the most productive use of your time and energy.

Sarah Akoth Student, Nairobi

Eco friendly receipts

Olatorera Oniru, founder of Dressmeoutlet.com 29-year-old Oniru is fast becoming one of the prominent names in Nigeria’s and West Africa’s booming e-commerce sector. She is the founder of dresmeoutlet.com, Nigeria based online fashion retailer. She has worked for a number of leading multinationals including Ericsson and General Electric. She however decided to quit her thriving career and delve into the murky waters of entrepreneurship. She aims to establish her business to global success.

“Accept failure, and be ready to fail. Don’t think everything will go well all the time. Look at failure as an opportunity to do better.”

Paul Kihiko, founder of Wing It Nairobi 30-year-old Kihiko is the founder of Wing It Nairobi, a fast-food restaurant that largely sells chicken wings.

He started the business in 2012 with a seed capital of Kshs 5 million. His father invested Kshs 4 million in the business while the rest was from his savings. The business has been extremely successful raising 6-figures annually in revenue. Last year, he raised Kshs 7.5 million from two investors for a minority stake in KTN’s Lions Den. He plans to roll other outlets as the business grows.

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Environment is key for survival of human being and animals. So the best thing that human can do to appreciate Mother Nature is to conserve it. Engaging in eco friendly activities has been found to have a direct impact on our quality of life. So Payment Gate is doing a great thing in rolling out digital receipts to replace physical ones.

Andrew Motown Nanyuki

HAVE YOUR SAY ONLINE The editor welcomes reader’s opinions but deserves the right to edit them for publication. Please email to info@startupmagazine.co.ke More comments are published online about news stories published on startupmagazine.co.ke

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News Kenyans are connecting, inspiring and entertaining the world through YouTube

of monthly watch-time comes from mobile devices.

On average, 60% of a channel’s views come from outside the creator’s home country.

“Over the past year, we have seen impressive growth in Kenya with an 80% increase in mobile usage. This means more people are spending more time on mobile, watching YouTube videos,” says Dorothy Ooko, Africa PR Lead at Google Kenya.

Sarah Migwi of Protel Studios started her YouTube channel - The Real HouseHelps of Kawangware in 2014 and has received over 165,000 subscribers so far. Describing her journey on YouTube, Migwi says “We have been a premium YouTube partner for over 5 years. YouTube has made it possible for us to showcase our content as well as reach audiences in different parts of the world. The amazing thing is, it is free to upload your content and make money from it.”

YouTube Content Creators talking about their growth journey YouTube is helping Kenyan content creators make money on the video platform by training them on how to grow their fan base and use other online tools.

Content creators like Mark Angel Comedy from Nigeria, Maxine Wabosha and Chef Raphael were today part of an interactive YouTube content creator

training where they shared their experiences about YouTube as they learned how to utilize the platform to the maximum.

YouTube attracts a global generation that has grown up watching what they want, whenever they want, on whatever device is closest. Across the world, more than 400 hours of video are uploaded every single minute, with 1.8 billion viewing hours a day and 1.9 billion monthly logged in users. Globally, almost 40% of YouTube’s staggering 6 billion hours

Emirates Introduces New Menus for East African Travellers

Emirates has introduced new menus in all classes for passengers flying from its East African points to Dubai. Customers travelling from Nairobi, Dar Es Salaam and Addis Ababa can look forward to a new selection of their favourite local dishes on the Emirates onboard menu.

An in-house team of chefs go through a continuous process of research, listening to customer feedback and reviewing current menus, create new dishes that reflect the taste preferences of customers on a specific route.

The recently launched new menus in each cabin include at least one dish that is influenced by local cuisine. This is in addition to a selection of international cuisine that caters other taste preferences.

Customers travelling from East Africa will be pleased to find traditional African dishes such as Kuku Paka, a chicken dish with coconut-based curry, served with butter rice and seasonal vegetables from Dar Es Salam, Misirbesiga key wat, an Ethiopian spicy beef and lentil stew, served with steamed ricefrom Addis Ababa, Nyamanairio, a Kenyan beef stew and mashed peas with potatoesand corn, served with grilled carrotincorporated in their in-flight menu

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YouTube has also launched more than 300 product improvements to our search and discovery systems last year to help people find even more videos they love. This includes things like the localised YouTube Music charts which captures exactly what Kenyans are listening to every week. Last year the firm introduced YouTube Go - an app designed for places where connectivity is slower and more expensive.

With YouTube Go, one can see and control exactly how much data one uses, play videos without buffering and enjoy videos offline.

when flying Emirates to Dubai.

“We aim to deliver the best culinary experience in the sky and are conscious that our products reflect our cosmopolitan customers. From the entertainment content on ice, to our multinational cabin crew, our menus are also tailored to suit local and diverse taste profiles. For that reason we listen to feedback from our customers, keep a close watch on the latest food trends, and invest in creating inspired menus that will surprise and delight everyone that flies on Emirates,” Nasser Iskeirjah, Regional Catering Manager, Africa.

Emirates’ focus on local flavour means it has food available from every region it flies to. The airline serves more than 100 million meals a year with the same attention to quality and detail in First, Business and Economy class. From 2017 – 2018, Emirates has catered to over 1 million customers from Nairobi, Dar Es Salam and Addis Ababa, on both routes.

Last month, Emirates launched exclusive Food and Wine Channels to give customers a behind-thescenes look at how it creates on-board menus and works with regional and global partners. The Food Channel highlights the detail that goes into menu development by Emirates Chefs and ingredient sourcing for on-board meals.

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News Mastercard Reinforces Commitment to Drive Digital Transformation Agenda in Zimbabwe

PG. 14

M-TRANSFER How M-transfer is accelerating financial inclusion

PG. 16 Left to Right Professor Mthuli Ncube, Zimbabwe’s Minister of Finance and Economic Development, Ajay Banga, President and CEO, Mastercard and Dr John Mangudya, Governor of the Reserve Bank of Zimbabwe Mastercard President and CEO, Ajay Banga, this week visited Zimbabwe to show Mastercard’s strong support for the country’s drive to create a new wave of digital payments and inclusive growth.

He outlined how Mastercard will collaborate with local private and public sector partners to drive greater financial inclusion through the implementation of innovative payment technologies.

Banga met with key government and private sector stakeholders including Professor Mthuli Ncube, Zimbabwe’s Minister of Finance and Economic Development, and Dr John Mangudya, Governor of the Reserve Bank of Zimbabwe, to formalise Mastercard’s support for payments innovation in Zimbabwe.

Banga also disclosed Mastercard’s plans to establish an office in Harare, Zimbabwe to coordinate its efforts to address financial inclusion – a pressing challenge in Sub-Saharan Africa where only 42.6 percent of the adult population has access to an account.

He made the announcement in Harare today at the company’s CEO Conversations event, a gathering of senior leaders from top financial institutions, mobile network operators and retailers. The new office will allow Mastercard to provide more effective support to its customers in neighbouring Southern African countries.

“Too many people and businesses are still excluded from the financial mainstream. This leaves them without the things we take for granted – a way to save money for a rainy day, get loans, or insure themselves or their crops,” says Banga. “Harnessing our global technologies and expertise, our Zimba-

bwean team will closely collaborate with all stakeholders to solve local challenges and enable more inclusion in the formal financial system.”

Mastercard’s expertise and products will be relevant across Southern Africa and in Zimbabwe, as the country implements the National Financial Inclusion Strategy, which aims to increase access to formal financial services from 69 percent in 2014 to at least 90 percent by 2020.

Dr John Mangudya, Governor of the Reserve Bank of Zimbabwe, says: “We see Mastercard’s investment as a positive development that will help us achieve our long-standing vision and our strategic plan to accelerate the shift towards cashless payments, modernise payments systems and infrastructure, and build an inclusive financial sector that supports the socio-economic development of the country.”

To increase financial inclusion in Zimbabwe, Mastercard recently partnered with EcoCash to launch EcoCash Scan & Pay, offering a simple, secure and instant QR code-based mobile payments solution to merchants and consumers. Since it leverages lowcost QR code technology rather than physical point of sale devices, Masterpass QR makes it simple and affordable for small and informal traders to accept digital payments.

“We applaud the remarkable steps Zimbabwe has taken towards modernising its electronic payments sector and the significant strides it is taking towards a more inclusive society,” says Mark Elliott, Division President for Mastercard, Southern Africa. “We are excited about the opportunity to partner more closely with Zimbabwe’s financial institutions, businesses and public sector to bring greater interoperability and payments innovation to the benefit of consumers and merchants.”

INTERVIEW Philip is the managing partner of Andersen Tax in Kenya (formerly Nexus Business Advisory Limited), a member firm of Andersen Global.

He spoke to us about life in the corporate world, Andersen’s positioning and its plan for the region.

PG. 20

ONLINE FOREX TRADING For the first time, Kenyans will have the opportunity to participate in global forex markets in a strictly locally regulated environment and at lower transaction costs thanks to EGM Securities November 2018 Startupmagazine.co.ke

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FINTECH

How M-transfer is accelerating financial inclusion Due to this challenge, a fintech firm is accelerating financial inclusion in Kenya via mobile financial solutions provided across all mobile telecommunication networks.

M-Transfer M-Transfer, established in April this year, is offering products that are integrated on a block-chain with new distribution channels for the provision of financial services in Kenya.

“We are convinced that you no longer need to have multiple SIM or visit a bank branch in order to access financial services,” says Jeffrey Muiru, founding CEO of M-Transfer Limited during an interview with StartUp Magazine at his office.

He believes that his firm has the longterm commitment to offer individuals and businesses with a market place for solutions that has been traditionally overlooked by the industry.

Jeffrey Muiru, CEO, M-TRANSFER

m

obile money is a form of electronic money that allows one to conduct financial transactions on a mobile phone. It allows financial services to be extended to unbanked people at a significantly lower cost because physical infrastructure isn’t needed.

Across sub-Saharan Africa, mobile penetration is rising with almost 75 per cent Startupmagazine.co.ke November 2018

of the population having a mobile phone according to popular studies.

While mobile money has enjoyed widespread adoption in Kenya, it is still inherently difficult to access financial services across different networks on a mobile phone.

A recent study by the IMF and MIT found that reducing blockage in financial inclusion has significant and unambiguous direct impact on productivity, and in turn on GDP growth. Smarter allocation of resources and more efficient financial contracting will result in stronger entrepreneurial activities, the study further says.

“Our platform is the only service that offers a marketplace for loans, savings and investment products across different networks,” he notes.

There is no escaping the fact that the lower end of the retail market has been consequently overlooked by mainstream financial service providers, yet they form the bulk usage of mobile money services.

“That is why we target them through our USSD solutions.”

On the other hand, businesses need to focus on their key functions to achieve their mandates. However, to accomplish this they need to have a fully functional system in place. Mr. Muiru understands the challenges business go through in

13 processing their payments, both internally and externally. To help solve such payment processing challenges, he designed the platform to allow a business to send and receive bulk payments instantly across networks.

“You can pay staff salaries with our platform or even suppliers. The software allows one to send money directly to their bank account or mobile money wallets.

It also has the capabilities of adding and removing approvers of a transaction. Besides, one can schedule transactions for a given date and time and the system will intelligently execute it,” says the young executive. The platform is easy to use and allow a business to save money and time.

Admittedly, an e-commerce solution on the platform allows one to collect payments for the business instantly from various channels.

Every transaction that is executed on the platform is recorded. One can also use such analytics within the platform to fur-

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ther gain insight into his business, he says.

Compelling services In order to create the most compelling technology platform, the executive says that they monitor customer feedback and use the insights to improve the platform.

“People are at the heart of what we do, and we aspire to make exceptional finan¬cial products, bettering lives and growing productivity.”

This led to the development of a chama/ table banking product. Groups can use the solution to manage their contribution and keep track of their savings.

Besides, the platform can also be used to fundraise for a meaningful course.

Various studies indicate that online payment platforms have been dogged by fraud globally. How then does M-Transfer ensure the platform is secure for its users?

“Our service is hosted by the globally reputable AWS Cloud by Amazon and built

on block chain which is very resilient. Besides, we conduct security audits and work with external cyber security consultants to ensure our solutions are secure.”

Other than that, the firm aims to accelerate the uptake of its products and introduce new ones based on the market needs. “We have a mandate to accelerate financial inclusion in Kenya by providing a broad range of financial services via the mobile phone and the internet,” he ends.

CEO’s Sneak Peak: He’s an Engineer by profession.

Has a background in technology and finance.

He worked in a finance role at the Coca-Cola Company (U.S.).

He has previously worked at Deloitte Consulting LLP (U.S.) on large technology implementations with Walmart, Kraft- Heinz and the Mitsubishi Aircraft Corporation.

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INTERVIEW

Interview with Philip Muema, managing partner, Andersen Tax in Kenya

If you were to sift through the past two decades of the tax and commercial strategy advisory industry in the region, it would be hard to find an executive with broader range of experience than Philip Muema.

Philip is the managing partner of Andersen Tax in Kenya (formerly Nexus Business Advisory Limited), a member firm of Andersen Global. Prior to founding Andersen Tax in Kenya he was the head of tax and partner at KPMG East Africa.

While at KPMG, Philip was the project director behind the successful Kenya Top 100 survey which he also rolled out in Tanzania, Uganda, and Rwanda. As an accomplished business leader, he has spearheaded various policy and tax initiatives and public finance in Kenya.

StartUp Magazine spoke to Philip about life in the corporate world. We discussed Andersen’s positioning and its plan for the region.

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b riefly tell us about your experience in professional tax and business advisory?

I have worked in the Tax advisory, commercial strategy and structuring environment for over 20 years. I began my career working at an Audit firm and by the time I made my exit, I was the Head of Tax and a Partner with an oversight mandate of their tax offering in 13 countries across the Eastern Africa region.

My passion for the entrepreneurship led me to establish the Top 100 Mid-Sized Companies’ Survey that we rolled out in Kenya, Tanzania, Uganda and Rwanda.

I have over the last decade engaged Treasury in discussions on tax matters aimed at bringing to the front the international best practices that Kenya can adopt to make its tax laws more efficient. My dedication and contributions in the tax profession led to my admission to ICPAK’s College of Fellows in 2016. I chair the Public Finance Committee of ICPAK and I am part of the steering Committee at ICPAK that is tasked with providing guidance on new tax laws.

Nexus Business Advisory recently became a full member firm of Andersen Global, how would you define this positioning?

Andersen Global is an international association of legally separate, independent member firms comprised of tax and legal professionals around the world. The firm made its entry into the Kenyan market through a collaboration agreement with Nexus Business Advisory Limited on October 1st 2017.

On 1st April 2018, Nexus Business Advisory Limited became a full member firm of Andersen Global and the second firm in Africa to officially adopt the name and brand of Andersen Tax. This is indeed a

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true testament of the confidence in the Kenyan market and the key role that our professionals play in the African market.

Joining Andersen global is the coming together of like-minded and similarly cultured firms that are committed to providing best-in-class service. The launch of the Andersen name in Kenya heralds a new dawn for tax practice in the East and Central African market. We look forward to the continued collaboration with the dedicated professionals in the global organisation as we continue to grow and expand into Africa’s key markets.

What are your new mandates/roles in view of the above?

Under the Andersen Tax brand, our firm will continue to provide tax and business solutions to individuals and corporations operating in East Africa and abroad, including services related to mergers & acquisitions, due diligence reviews, sell-side tax advice, transfer pricing, corporate tax, VAT, international tax, cross border tax planning, customs advisory, tax litigation, and employee compensation structuring.

We are now growing into Organisational Development as well as Public Policy development.

As the Managing Partner of Andersen Tax, Kenya, I now sit on the Global Advisory Board of Andersen Tax and have been instrumental in the growth and expansion of the firm into the rest of Africa.

Why do businesses need professional tax and legal advice? What’s the impact?

Pay unto Caesar that which belongs to Caesar.

The government is a silent shareholder in any business and therefore it is important to ensure that our clients’ businesses are structured to limit their exposure and have them pay the requisite amount to the Revenue Authority. Our focus is to proactively manage tax on behalf of our clients so that our clients can focus on their core business.

All over the globe, the attitudes of inves-

tors, governments and corporations towards taxes are shifting. Many organizations now find that their tax decisions are under close scrutiny, compared to years gone by. Information sharing on various technological platforms has enhanced the efficiency of tax authorities in assessment of personal and corporate taxes, thereby increasing the potential for unforeseen tax liabilities. In light of these developments, the need for an experienced tax consultant cannot, therefore, be overemphasized.

Given the complexity of business today, Andersen Tax commits to examining opportunities and challenges from every angle.

What are the predominant tax/legal challenges faced by businesses? Are there possible interventions?

I would say compliance and technical skills gap in the market. We do not have enough qualified tax professionals in the market and therefore businesses tend to rely on their accountants and auditors for tax advice. The administration of tax in businesses has over the recent years gained momentum since businesses recognize the need to be tax compliant. Tax is now a board room affair and not a back room matter anymore.

ICPAK is in the process of launching the Centre for Public Finance and Tax (CPFT). One of the key mandates of the CPFT will be to develop tax profession in Kenya and advance tax policy. This mandate is in line with one of our core values- Stewardship- Andersen Tax recognizes the need to invest in its people through continuous training and personal development. We shall work hand in hand with the CPFT to grow the tax profession in Kenya in the years to come.

Another challenge I would mention is the tax legal framework in Kenya. The government is keen on addressing this and we have seen that over the last five years, the government has been in the process of a tax modernization framework which has seen the country enact a new VAT Act, Excise Duty Act, Tax Procedures Act, Tax Appeals and Tribunal Act. In June November 2018 Startupmagazine.co.ke

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of this year, The National Treasury finally released the much anticipated Income Tax Bill, 2018 for public debate and submissions as required by the constitution.

The bill is set to overhaul the Income Tax Act, CAP 470 (ITA) which was enacted 44 years ago.

Transfer pricing has emerged as a challenge to companies which do business with their subsidiaries based outside the country. The simplification of transfer pricing regulations as well as the proposed changes contained in the Income Tax Bill 2018 and the ongoing exchange of information between jurisdictions have brought to closer scrutiny related party transactions.

Which emerging trends do you see in this space? How have they impacted in your operations?

Transfer pricing and Private Wealth and Startupmagazine.co.ke November 2018

Client Services.

We have setup a fully-fledged transfer pricing unit and we are closely working with our colleagues in the African market in this key area. We are in the process of setting up a private wealth and client services division. We assist our clients with all of their personal taxes and family wealth matters ranging from income tax planning and compliance to setting up structures designed to achieve both operational and tax efficiency. Our services are designed to help our clients increase after-tax returns on private wealth because our team understands that when you are accumulating wealth, it’s not just how much you make but how much you keep that matters Do you have future prospects we can look forward to?

In the next three years, we plan to have a well-entrenched brand in the industry, operate as the industry leader for tax advi-

sory services and have a strong client base.

The ultimate goal of Andersen Global is not to be the biggest tax and legal firm in the world but to provide best-in-class client services in seamless fashion across the globe. Each and every one of the professionals and member firms that are part of Andersen Global share this common objective and are continuously working towards its realization.

Other pertinent issue?

Andersen is not just focused on businesses. We are quickly growing our Private Clients and Family Wealth portfolio in a bid to ensure that the business owners also have their personal matters in check.

We assist our clients with all of their personal taxes and family wealth matters ranging from income tax planning and compliance to setting up structures designed to achieve both operational and tax efficiency.

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FOREX TRADING

Kevin Ng’ang’a, CEO, EGM Securities

Redefining online forex trading in Kenya For the first time, Kenyans will have the opportunity to participate in global forex markets in a Tell us a bit about your professional experience? strictly locally regulated environment and at lower transaction costs thanks to EGM Securities.

I started my career in the banking indus-

EGM Securities is Kenya’s first and only regulated non-dealing online forex broker. Earlier this try and have been in it for over 16 years. year, it launched the region’s first online forex trading offering in Kenya that enables trading I established myself in the National Treausing multiple payment channels including mobile payment channels such as M-Pesa. sury department as a forex and money StartUp Magazine spoke to the CEO of EGM Securities Kevin Ng’ang’a about the firm’s new strategy and products it has in the pipeline.

markets trader. Some of the duties included working with banks, fund managers and investment banks to fundraise both locally and internationally.

More recently, I was the Regional Treasurer at UBA Bank overseeing six countries in Africa where I was responsible to grow the bank’s balance sheet.

Startupmagazine.co.ke November 2018

I joined EGM Securities in May 2018.

19 What does the board expect from you?

Kenya was the obvious point of entry into the region to introduce online forex trading using mobile payment channels given that the country is the most advanced economy in Central and East Africa, and it is globally renowned as the leading financial innovation hub in Africa, supported by its strong entrepreneurial culture, and importantly, Kenya has the most proactive and innovative regulator in the region.

The company expects me to grow its market share in Kenya and spearhead it into East Africa.

How is EGM Securities relationship with its global group?

EGM Securities Limited is part of a global group of companies that are among the most progressive FX and CFD brands and prime brokerage providers in the industry.

Companies within the group include Divisa UK whose trading name is Divisa Capital, regulated by the UK’s Financial Conduct Authority (FCA) with Equiti US (formerly Divisa US), Bloom Capital (formerly Divisa NZ) and Divisa Armenia as its subsidiaries.

Equiti Jordan is authorised and regulated by the Jordan Securities Commission ( JSC) and in Dubai, EGM Futures DMCC is regulated and licensed by the UAE’s Securities and Commodities Authority (SCA).

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and invest in asset classes such as precious metals. Prior to this regulation it was very expensive to get access to assets such as precious metals and transactionally difficult. But now with our product offering you are able to invest in Gold directly from your M-pesa account.

We are also giving investors in Kenya opportunities to do global Indices. That means if Kenya is struggling on the equity side, local investors have an opportunity to trade on global assets.

It also presents us with an opportunity to offer world class customer service from a localized approach. We also want to deliver innovative and tailor-made solutions for the more elite and professional investors who will be able to engage in multiple-asset classes such as Oil. What differentiates you from other players?

We have done a lot of investments into giving people localized transaction solutions at almost zero entry costs. For example if you want to use a global broker you will have to do a swift transfer and pay a brokerage fee. But we are absorbing all those costs. We have invested in a lot of technologies that have been integrated into local payment channels such as M-pesa and Airtel Money among others.

What does good regulation play for the sector?

Being licensed by the Capital Markets Authority of Kenya, investors are afforded the provision of legitimate online forex services.

Historically there was lack of transparency where investors wouldn’t know where money is held, the strength of the holding bank or even the broker. There is a very clear dispute handling channel that is managed by the CMA. Regulation also dictates that we uphold money with bank accounts that are under the Banking Act of Kenya. This ensures that the safety of funds remains in Kenya and investors have visibility and access to their funds at any point in time.

What future prospects can we look forward to?

Our innovative financial offering bolsters Kenya’s positioning as a leader in financial innovation in Africa. We are going to introduce broader and more liquid diversified investment portfolio offerings that include Forex and Contracts for Differences (CFDs) and invest in Single Stocks.

We are also in the process of introducing asset classes that would be targeted to agribusiness consumers such as coffee and wheat among others.

We are very excited at the prospect that lies ahead for the financial markets in Kenya.

EGM Securities Ltd is Kenya’s first Non-Dealing Online Forex Broker licensed and regulated by Kenya’s Capital Markets Authority (CMA). What does this mean to you and the market?

The investment community in the region has always been exposed to traditional class of investments like bonds, equity, cash and property. As non-dealing online forex broker, investors in Kenya now have access to new asset classes and global macro opportunities. This new asset class allows investors to diversify their portfolio November 2018 Startupmagazine.co.ke

20

WOMAN OF POWER

ONLINE SHOP-Green Spoon aims to deliver healthy foods to Kenyans

Juliet Kennedy, Founder, GREEN SPOON

w

hen Juliet Kennedy gave birth to her daughter four years ago, she was more concerned about giving her a good start in life. She wanted her to live healthy lifestyle.

She once asked around and researched over the internet and social media where Startupmagazine.co.ke November 2018

she could get nut butter without additives for her child but she couldn’t find one.

her that is what she should do – sell quality artisan food online.

She became frustrated and imagined there might be many people facing the similar problems.

She went straight into research and talked to people for almost a year to test the waters. There was very positive response, indicating an immense need for natural health food and products.

“I was concerned about living a healthy lifestyle, wanted to be part of the development agenda in Kenya and nourish my entrepreneurship bug,” recalls Juliet.

Her Eureka moment came in form of encouragement from her husband who told

The juggle between motherhood and executing her idea was quite a challenge.

“The early years of motherhood are really intense and I was doing a lot of research

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which was equally overwhelming.”

Six months after the birth of her son, she started Green Spoon, an online shopping platform for people who care about what they eat.

She first started in a small container in garden, moved to a shopping center and then relocated to their current premises at Ngong House in Karen.

Browns Buttery Brie

“Our journey in two years has been amazing because we help farmers/artisans grow in terms of accessing markets for their products. We also deliver quality food products to people,” says the entrepreneur who studied Social Anthropology at the University of Edinburgh in the UK. She came back to Kenya in 2010 to settle after studies.

“Our prices are competitive and we are committed to ensure quality deliverables amongst our customers, who we value above all else.”

Juliet has built her business from strength to strength on the wheels of good organization and competent team.

Green Spoon Jars of Goodness

“We take orders on a given day and deliver the following day. Our product line ranges from dairy products (cheese, yoghurt, ice cream), meat (beef, pork, mutton, chicken among others), to seafood which is seasonal, pantry items and high quality wines.”

All their meat comes frozen and they advise clients on storage measures upon delivery to ensure that the food lasts longer.

Customers make orders via their online shop at www.greenspoon.co.ke and pay online or via mobile money.

“

We take orders on a given day and deliver the following day. Our product line ranges from dairy products (cheese, yoghurt, ice cream), meat (beef, pork, mutton, chicken among others), to seafood which is seasonal, pantry items and high quality wines.

”

Her family always encouraged her.

“Green Spoon wasn’t my first stab at entrepreneurship,” she notes.

After studies, she first worked in the tourism and hospitality sector marketing high end luxury lodges and hotels around Africa.

She then quit employment to start a tours and travel marketing firm with her cousin and left after two years.

“When you are born an entrepreneur you can’t help but think of ideas and how you can help solve a problem,” says Juliet who is also fascinated about the behavior of humans and how their spirits, beliefs and cultures develop and thrive.

She also once ran a boutique digital marketing agency that helped firms to improve their online reputation and seek better ways to engage with their customers.

Juliet has high ambitions for Green Spoon to become a household name.

Juliet, who is passionate about what she does says she really loved food from an early age.

Green Spoon Safari Lounge Christmas

At University she was fond of cooking and loved trying new recipes and unusual food flavours which haven’t been done before.

November 2018 Startupmagazine.co.ke

22

MY HUSTLE

Quit or try harder, my ENTREPRENEURIAL vibe

a

frica and Kenya in particular faces a pressing youth unemployment problem.

Glaring statistics from the World Bank shows that over seven million Kenyans are unemployed with the youth accounting for over 80 per cent. Out of this, about 1 million are desperately looking for work while the rest have given up on job hunting.

Collins Wabianga was faced with a similar predicament after graduating in 2014 from JKUAT with a degree in Actuarial Science.

His heart sank after a year of desperately looking for a job with no luck.

Collins Wabianga talks about quitting up on job searching, founding Netcore Electronics and how the firm aims to disruptive ICT products sales in Kenya.

He, however, started picking up the pieces, went to his hometown in Webuye to try a stub at entrepreneurship.

He first tried farming sugar cane. His setback came in the form of loses. He immediately gave up on farming but changed tact.

When StartUp Magazine team met him at his office at Avenue House along Kenyatta Avenue, he was upbeat about succeeding as an entrepreneur. “One of the hardest decisions you’ll ever

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face in life is choosing whether to walk away or try harder,” he says in reference to a common quote on working hard.

“I came back in Nairobi in 2016 and embarked on a new strategy,” he explains.

He started Netcore Electronics with a savings of Kshs 700,000 selling fast moving consumer electronic products like TV sets and mobile phone.

His initial shop was at Nairobi’s river road. After awhile, he teamed up with a colleague and relocated to their current location along Kenyatta Avenue.

“

“At the outset, the backbone of the business was ICT. But we undertook market research and realized there was more room for growth dealing with computers, laptops and other household electronics,” says the entrepreneur.

There is increasing demands for laptops especially from students and ICT products for corporates.

The corporate is a key market for us as they provide a wide range of business opportunitiesas opposed to retail which is majorly one off engagements.

Today, the company sells home and office electronics which presents an expansive avenue for growth. It stocks both retail and wholesale products.

“There is increasing demands for laptops especially from students and ICT products for corporates.The corporate is a key market for us as they provide a wide range of business opportunitiesas opposed to retail which is majorly one off engagements.”

In order to capitalize on the increased appetite for laptops by students, Mr. Wabianga says the firm is working on a strategy to bring investors on board. “We are looking at a case where investors would finance students to acquire laptops and pay in installments. As much as it makes a business sense for us, it is also another way of empowering students to achieve their dreams.”

While the business has grown organically since inception, it has its own fair share of challenges.

“As a startup, we don’t have a customer base. It is very challenging to source for customers,” he says, adding that, “Initially we used to buy electronics locally from

”

distributors who charged us high prices.

We carried those costs to clients watering up our competitive edge. However, with time, we were able to identify authentic distributors who sell to us at competitive prices.”

Despite these setbacks, Netcore Electronics has adopted ways to enhance their customer experience and generate more sales.

For instance, after sales, they can free installations and setup of ICT products for clients.

“We have also been conned twice. We now know whom to deal with and whom not to deal,” says Mr. Wabianga expressing concerns over frauds in this line of business.

They also market the business on digital platforms and via billboards across the city to create awareness.

Has the journey been easy?

No. “Startups in Kenya struggle a lot. Government should give young entrepreneurs incentives instead of stifling their growth.

Access to finance to fund business growth is also severely strained, and what is available is expensive.”

To this end, Mr. Wabianga aims to expand his venture and have a nationwide reach.

Advise to young entrepreneurs?

“There is no perfect timing to start a business. Start where you are with what you have and learn on the job. You cannot anticipate everything the business will throw at you.”

November 2018 Startupmagazine.co.ke

Cover Story

HOW PHILIP NYAMWAYA FOUNDED A THRIVING ONLINE PAYMENTS FIRM Startupmagazine.co.ke November 2018

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Philip Nyamwaya talks about founding iPay, succeeding as an entrepreneur and the importance of online payments in a digitally transforming world

P Philip Nyamwaya, the founder and CEO of iPay Limited, never thought he could be an entrepreneur. Like most other university students, his dream was to work hard in school, get good grades, and get a well-paying job. As a third year university student, he got a chance to work on a software project, an experience that would later set him up for entrepreneurship.

Philip worked extra ordinarily hard to deliver a quality project. The client was impressed with his work and offered him a job shortly thereafter. He could juggle between studying and working, as the job gave him an opportunity to earn a salary, while still in university.

“When I went to the university, I had the mindset of most every other student. Get a job, maybe as a management trainee, and rise through the ranks. But after I got that employment opportunity, I figured out that I can actually survive as an entrepreneur,” says Philip.

In 2004, he graduated with a degree in computer science from Jomo Kenyatta University of Agriculture and Technology.

“I graduated at about the same time president Kibaki was sworn in for his first term. The air of optimism in the country was palpable.”

After graduation, Philip teamed up with a friend, Steve Ogola, to start Intrepid Data Systems- a systems integration firm. Four years later, M-Pesa was launched by Safaricom.

FRESH.INSPIRING.ANALYTICAL

“I figured that we could actually create a community of e-commerce clients around this platform,” he says.

“Back then, we were thinking about M-Pesa 2.0. We pondered on developing a solution that would enable people to make payments for goods and services using mobile money at the point-of-sale as well as on the internet.”

Grabbing the opportunity head on, he spearheaded the development of a system that would allow one to use mobile money to make digital payments.

Coincidentally, this happened at a time when he was doing his Masters thesis on mobile commerce development in a third world context. “It was exciting because I was studying what I was doing practically with our system development,” says Philip, who holds a Masters Degree in Software Engineering from the University of Liverpool.

Developing such a system was not easy, he says. Despite this, they still managed to have a good test run with clients. Afterwards, the board of directors decided to separate the software development and payments solution entities and create iPay as an independent company.”

Eventually, iPay was incorporated in 2010 and the product went live. iPay is an innovative payments processing solution and payment gateway built for Africa.

The firm packages popular bank debit and credit cards and money transfer systems into an online/point of sale transaction processing gateway that allows one to receive payments off a website.

These modes of payment integration include M-Pesa, Airtel Money, e-Lipa, VISA, Mastercard, Kenswitch, Pesalink and EazzyPay. sWe have made it easier for clients to make secure payments for products and services both online and at the point of

sale using mobile money, mobile-banking and credit cards. Payment notification is instantly done to both the merchant and to the customer, “adds the executive.

The technology also allows businesses to make payments to their suppliers or to their members of staff. Under this, business owners can pay out funds to suppliers. They can also pay staff salaries directly to their bank accounts or mobile wallet.

He further explains that they refined the technology to enable businesses to pay other businesses through the platform.

“It is fast, seamless and attracts no extra costs.”

Noting that a modern customer is highly fluid, seeks special treatment and is always shopping for creative services that define how they transact their business on-thego using mobile gadgets, the firm introduced a billing solution.

Their billing solution enables users to buy airtime, pay for bills and services like TV and internet subscriptions, water and electricity bills using paybill number 510800.

“We also offer event owners ticketing solutions under www.tickets4u.co.ke, which allows businesses to run events and vend tickets digitally.”

Contrary to popular belief about cyber fraud, online bill payments are safe, when you choose the right bill payment service, he says.

Typically, an online bill pay service that is backed by a bank or a company that provides online banking services will be safe and reliable. This is because online bill pay services encrypt your data to keep it secure and use multi-step identity verification processes and password protection.

How does iPay ensures integrity on its platform?

“We have invested a lot of resources in the past decade to build a robust platform.

The confidence entrusted on us by some of the largest online retailers and corporaNovember 2018 Startupmagazine.co.ke

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Cover Story tions in Africa speaks for itself,” explains the CEO. “Besides, we have a trustee who oversees merchant funds. We value the security of information and data within our systems, as well as people who access the system, whether internally or externally.”

Client confidence iPay serves more than 3500 clients in private, public and non-profit sectors.

These include leading brands like Jumia, National and County Governments, National Museums of Kenya, Ramtons Electronics, My Dawa, Urban Coffee, Banks, Churches, the Africa Legal Network among others.

Besides just targeting big players, the firm also tailor makes its solutions to address the needs of small businesses.

“Our product is secure, easy to understand and easy to use. We make it easier for firms to focus on their core business by handling their payment challenges effortlessly for them,” he explains adding that, “firms can also make use of the data generated from using our platforms to make important business decisions.”

“An audit trail is generated for every query executed. Such data can be fed into an accounting system for further analytics,” says Philip. For instance, the data can give insights on which channels are mainly used by clients or which products are moving faster.

“We are also taking away the inherent risks that come with handling cash. If a customer is not happy with your products or services you can refund money directly via our system.”

Recently, iPay partnered with King Kaka Foundation under the Bank on Me initiative. The firm offered the foundation a payment platform. The initiative aims to keep 100,000 girls in school and focus on their education through sanitary towel Startupmagazine.co.ke November 2018

donations.

Business lessons

Future “We are keen on working with county governments to meet their revenue collection goals. We are also interested in meaningful partnerships in micro lending to allow our merchants access working capital which they may not be able to access due to financial constraints.”

Philip says he has learned important lessons that are key to entrepreneurial success.

•Integrity, honesty, diligence and discipline are important principles in life and in business.

•Don’t ever make promises that you can’t deliver.

•If you are not able to do something now, it doesn’t mean that you won’t be able to do it in future.

•An entrepreneur has moral accountability to his employees, clients, the government and the public.

•Don’t take shortcuts. Work ethically. Start small but dream big.

•Build solutions that solve real world problems, such will stand the test of time.

•Create value in life. Good value attracts capital.

•My faith in God informs my value system

The firm is also launching e-Lipa, an app that allows customers to pay for utilities online.

Besides Kenya, iPay also operates in Uganda and Tanzania.

Using its success in the region as a reference point, the firm is pondering entry into Togo and the rest of Africa.

“We have the ambition of increasing our footprint in Africa and East Africa was the entry point,” says Philip.

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November 2018 Startupmagazine.co.ke

28

ECO-FUEL

Biogas fuelling energy revolution in rural Kenya

1

g lobally, it is estimated that more than two and a half billion people lack access to clean and safe cooking fuel. Africa’s population alone accounts for almost half of that figure according to data from Hivos East Africa.

Many households in Kenya rely on traditional sources of cooking fuel such as wood, charcoal and dried manure among others. Sadly, the use of traditional biomass as fuel for cooking present health hazards to many African families. FurStartupmagazine.co.ke November 2018

2

1. Mr. Frankinson Maina at his home.

2. Biogas feeding point.

3. Gas control meter 4. Biogas powered burner

ther statistics indicate that these fuels kill many people and make many more sick.

Such unsustainable collection of tradition fuels is further exhausting natural resources, damaging the environment and contributing to climate change.

To help address the energy access challenges in Kenya, Hivos East Africa is working with partners under the Africa Biogas Partnership Programme (ABPP) to provide alternative sources of energy especial for rural dwellers.

The programme aims to provide ac-

3

4

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cess-to-energy services through the installation of biogas digesters in partnership with local artisans and enterprises.

Our team visited Mr. Frankinson Maina at his model farm in Kilimabogo near Thika (Kenya) to learn the story of a farmer who has benefitted by using biogas digesters with the help of ABPP. Mr. Maina learned about biogas from a colleague in 2014.

He was often bothered by frequent power shortages at his home and the unsustainable electricity supply.

“My colleague had endless supply of cooking gas from his digester and was saving a lot of money in fuel consumption,” says Mr. Maina.

him to set a biogas digester at his home.

“It was very affordable to set it up as I used readily available resources together with help from an ABPP artisan,” he recalls.

Since Mr. Maina started using biogas digester, he has never looked back. “It has helped me in a number of ways I couldn’t envision before. It is very reliable and I have never run out of gas for three years now.”

He adds, “It has also helped me cut down cost on expensive electricity. My wife no longer wastes time sourcing for firewood or charcoal since the biogas is readily available.”

He felt in love with the idea and couldn’t wait to acquire a biogas digester.

He also uses the bio-slurry (an organic fertilizer) in his farm which has improved soil fertility and boosted agricultural production.

He was referred to ABPP which helped

According to Mr. Timothy Mwangi of

Kenya Biogas Program attached to ABPP, the use of traditional biomass as fuel for cooking and reliance on expensive diesel powered machines has been the norm in Africa. But this is set to change with the help of ABPP as it empowers Kenyans with alternative sources of energy.

“The use of biogas alone can meet several SDGs like eradicating poverty, hunger, achieve gender equality, affordable and clean energy ,” he says adding that, “It will tremendously improve the living conditions of many African households. In particular, women and children will improve their health as cooking on biogas is clean and smokeless.The collection and use of biomass fuel, mostly firewood, will be eliminated hence reducing environmental destruction and creating time for other economic activities. Women and young girls will also avoid unnecessary risks associated with sourcing for firewood especially in rural areas.”

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November 2018 Startupmagazine.co.ke

30

ICT & GOVERNMENT

Connecting Kenya: AI as a government tool to accelerate manufacturing sector growth

Joseph Kanyua

Kanyua is the Head of Innovation & Customer Experience Solutions at SAP East Africa

a

s exciting as the emergence of accessible and powerful artificial intelligence may be. There’s no single other exponential technology causing as much uncertainty among governments, businesses, and citizens. While many advanced economies have embraced AI as an integral part of their industrial and manufacturing sectors. Emerging economies are understandably nervous about the effect AI will have on job security, income levels, and Startupmagazine.co.ke November 2018

economic growth. Analyst firms predict that 30 to 40 per cent of current jobs are at risk of full automation. Pointing all these to a future where millions of workers will be redeployed to new, possibly not even yet invented jobs.

However, the economic potential is immense: PwC expects global GDP to be 14 per cent higher in 2030 as a result of AI, contributing USD 15.7-trillion to the global economy. Half of this is due to labour productivity improvements; the other half due to increased consumer demand resulting from product innovation supported by AI. The question for governments in emerg-

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ing economies is this: how can AI support – not undermine – efforts to boost economic growth and job creation while still ensuring global competitiveness? In Kenya, AI is perfectly positioned to support some – if not all – of the government’s top priorities.

cording to the country and various counties therein, showing productivity levels, output, investment volume, growth, and more. Based on the investor’s area of interest, the portal then provides machine learning-powered suggestions of where they could invest.

Kenya aims high with Big Four At the end of 2017, Kenyan President Uhuru Kenyatta announced his Big Four Agenda, a shortlist of key priorities his government will drive over the next five years, namely:

An impressed investor registers, an embedded AI-powered chatbot guides and answers their questions. The lead created via this process is handed to a dedicated resource within the Ministry of Foreign Affairs and International Trade or the Ministry of Industrialisation and Enterprise Development, who reach out to the investor and closes the loop.

1. Improve food security to ensure 100 per cent of Kenya’s food and nutrition requirements are met; 2. Ensure access to affordable housing by constructing 500 000 affordable homes; 3. Enhance manufacturing to grow its contribution to GDP from 9.2 to 20 per cent; and 4. Drive affordable healthcare by achieving 100 per cent universal healthcare for all its citizens.

There is a strong case to make for the application of AI in achieving each of these four grand goals. Food security can be improved through AI’s unmatched ability to analyse vast amounts of economic and other data to develop accurate predictions and models for the expected output of certain staple foods, for example. Technology also has a role to play in minimising food waste: if an algorithm detects a potential oversupply of certain products, the government could introduce incentives for farmers to plant alternative crops. In both healthcare and housing, AI could supplement government efforts for improved tracking of access to both healthcare and housing in order to produce accurate insights that feed directly into government policy.

In the manufacturing sector, opportunities for stimulating economic growth and attracting foreign direct investment deserve a closer look. According to latest World Bank report on Kenya’s economic outlook, the country’s GDP is expected to grow by 5.8 per cent in 2019 despite a sluggish recovery for the manufacturing sector, which is coming off the weak

5.8 % According to latest World Bank report on Kenya’s economic outlook, the country’s GDP is expected to grow by 5.8 per cent in 2019 despite a sluggish recovery for the manufacturing sector, which is coming off the weak growth of 0.5 per cent in 2017.

growth of 0.5 per cent in 2017.

If the government takes an innovative look at the possibilities of AI in Kenya’s manufacturing sector and introduces the correct policies and interventions, it could both improve productivity (and by the effect the sector’s contribution to GDP) as well as attract much-needed foreign investment. Let’s look at how.

Creating an AI-powered investment super-portal Imagine for a moment an investor in the UK is seeking opportunities to expand their manufacturing portfolio to a highgrowth emerging market. Following a web search, they land on a Kenyan government web portal for potential investors that is supported by embedded AI. The first thing they see is deep analytics ac-

This process may seem simple, but it is built upon a system that is governed by an open data policy similar to the ones so successfully used by Japan, the UK or US, as well as a suite of the latest exponential technologies including AI. Any investor with the means and desire to enter the Kenyan manufacturing sector would find it hard to resist this level of efficiency and transparency. And as more investors enter, manufacturing sector growth accelerates, job creation flourishes, and the country takes one more step toward the bright future envisioned by President Kenyatta and his cabinet.

AI is an inevitable outcome of humankind’s accelerating technological progress.

It raises many questions about the future of work, life and government. And while some reservations over its potential consequences are well deserved, its potential for accelerating Africa’s – and Kenya’s – economic advancement is impossible to ignore.

Smart government policies guiding and facilitating the use of AI in key industries now will create an environment where countries can enjoy the benefits for decades to come. It’s time our leaders took a pragmatic view of the role of AI in improving the lives of all citizens.

November 2018 Startupmagazine.co.ke

32

REAL ESTATE

Group investment among millennials, is an easier way to become homeowners

“

It was not raining when Noah built the Ark”, this is a popular saying coined by Howard Ruff.

Reuben Kimani

Kimani is the CEO, Username Investment Limited.

It is a call to prepare yourself for a future occurrence by ensuring that you are well equipped to handle it better and get through it more easily. Majority of Kenyans begin looking for housing and investment opportunities when they are over 30 years. This is the time they begin to look for properties near their businesses and places of work.

In summary; • 74.4% of persons employed in the formal sector in Kenya earn Kshs 50,000 and below per month.

• Chama investments is an easier way for young people to pool resources.

• Youth groups can target agricultural rich areas such as Nakuru, purchase land and venture into agriculture to create a constant food supply and ultimately gather enough profits to build their own homes.

• Group contributions should not lie idle in a bank account rather they should be invested in an asset such as land that appreciates by the day.

This pressure results to the need of massive housing especially to the young population aged between 25-35 years; they begin looking for affordable land they can turn into homes. However, at this age

Startupmagazine.co.ke November 2018

the available properties in the market are expensive and unaffordable to them. This crisis has been experienced in Kenya and it resulted to the launch of the Affordable Housing agenda late last year. To solve this crisis 500,000 housing units are set to be built by the government. It is time we encourage young people to embrace Group/Chama investments early in life because it is an easier way to pool resources for land investment before the age of 30 years.

Investment groups are formed by individuals who pool their funds to invest together on a consistent basis. They come up with strategies of ensuring that each member benefits from the investment they agree to undertake. This is an excellent way for young people to begin investing, they may agree on the amount of money to contribute to achieving a common goal. In Kenya, for example, young people may agree to purchase a piece of land in an area such as Nakuru and venture into agriculture for a beginning and later engage in the construction of their own homes and settle their families.

74.4% of persons employed in the formal sector in Kenya earn Kshs 50,000 and below according to The Kenya Bureau of Statistics. Some of those who earn this amount are able to invest as an individual.

However, it is easier to invest as a group because of lower investment risk. A group provides multiple shoulders to lean on and help carry the burden of investment. For example, a group of 10 young people may agree to share different roles when implementing a project such as agriculture

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PG. 34

CYBER SECURITY Why identity verification matters for mobile operators in Africa

where some can work on the farm while the rest go out to market their products.

This creates a shared responsibility rather than having a single investor managing the whole investment. A group also provides an opportunity to brainstorm the different ideas that may be implemented as compared to individuals where you have no one to challenge the viability of your idea.

Investment groups also cultivate a culture of saving among the millennials. The small contributions made by individuals in a group will gradually create a culture of saving among them and if they decide to invest in land they can easily be turned into homes or for commercial purposes that will generate income for the group members. This will prevent the last minute rush to acquire properties when old age has already knocked in.

Financial planning is also well cultivated in groups due to existence of rules that ensure the members adhere to their contributions either on a weekly or monthly basis. This inculcates a culture of financial discipline that ensures the continuity of financial planning even in old age. In real estate, for example, the returns are assured in short and long term.

strengths that lie in groups and you find some giving an attractive offer for groups who purchase a certain number of plots, for example, buy 10 plots and get 1 free.

This is a clear indication that the contributions made by these group members are millions but they have not been put to productive use. It is therefore important to join a group that you share a common vision such as a group that aims at purchasing land or construction. This will ensure that your contributions are not in a bank account, rather, the money is invested in an asset such as land that appreciates by the day.

In conclusion, if young people target an area such as Nakuru and invest in land as a group, it is easier for them to venture into agriculture and create self-employment. This could be in poultry keeping, potatoes, vegetables, peas etc. and create supply to Nakuru Town which is massively growing due to infrastructure and population growth. Gradually they will have pooled enough resources to widen their investments and venture into the construction of their individual houses.

This will ensure that they are well able to settle in their own homes without having to rent for longer periods of time.

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TRAVEL & LEISURE Gems of Magical Machakos

PG. 38

BOOK REVIEW The 50th Law

Real estate companies have identified the November 2018 Startupmagazine.co.ke

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CYBER SECURITY

Why identity verification matters for mobile operators in Africa

Sherry Zameer

Africa is rightly called the mobile continent, and mobility increasingly defines how Africa enters the Digital Age. Zameer is Senior Vice President, Internet Of Things for CISMEA at Gemalto

Startupmagazine.co.ke November 2018

a ccording to the 2017 Mobile Economy Report of the GSM Association, Africa currently has 420 million unique mobile subscribers representing a 43 percent penetration. By 2020, the Report predicts that 500 million Africans will be mobile subscribers, making it the fastest-growing mobile market. Perhaps more important,

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smartphone connections have doubled in Sub-Saharan Africa to nearly 200 million over the past two years1.

existing customers decide to buy a new service, or extend the functionality they already have, it can be done seamlessly and without any additional inconvenience by using their digital identity.

Ovum, meanwhile estimates that mobile broadband connections in Africa will rise from 419 million at the end of 2017 to over one billion by the end of 2022 2.

While the figures may differ, the message is the same: Africa’s digital economy will be built on mobile platforms, creating exciting opportunities for farsighted mobile operators to play a key role in the continent’s digital revolution. As in many other developing markets in which mobile is outstripping fixed-line networks, mobile operators are becoming an important provider of, and platform for, a growing range of services. Kenya’s M-Pesa money transfer service was developed partly by Vodafone, for example, and mobile operators are partnering with insurers, retailers, banks and other companies to provide a growing range of innovative services to Africans.

Air time is even being used to replace cash for small payments.

In this growing ecosystem, payment solutions that are both secure and customer-friendly are of paramount importance.

In particular, as mobile operators offer more and more services, identity fraud is becoming an issue. As a result, the ability to verify customer identity is becoming a business imperative for mobile operators.

However, traditional identity verification methods are subject to manual error and provide a frustrating customer experience. In contrast, a digital and automated identity verification solution can have an immediate impact on fraud reduction and even improve customer enrolment.

A powerful digital identity verification solution that is automated and integrated into the business process brings a new dimension to customer identity management. While there are a number of associated benefits, here we highlight the four key ones for mobile operators:

Providing better customer support

Deploying identity verification services can help to reduce fraud. In fact, according to the Technology Research Institute, “real-time point-of-sale identity verification services are an invaluable aid to stopping fraudsters from exploiting identity theft”.

Reducing fraud Deploying identity verification services can help to reduce fraud. In fact, according to the Technology Research Institute, “real-time point-of-sale identity verification services are an invaluable aid to stopping fraudsters from exploiting identity theft”. For example, since Orange introduced Gemalto’s identity verification tool, fraud in some stores was reduced by 100 per cent. Additionally, performing identity verification in front of customers was found to discourage criminals from even attempting fraud.

Streamlining customer acquisition Mobile operators offer customers a growing range of value-added services such as payments, Internet of Things services and peer-to-peer payment solutions, and this list is growing all the time. By deploying an identity verification solution, mobile operators could benefit from a consistent and unique digital identity that covers all services at the same time. Therefore, when

Deploying a solution that is user-friendly right from the start offers a real advantage because it can be improved over time by gathering feedback from sales staff. In Orange’s case, it allowed staff to focus on consumer care rather than on administrative tasks, helping to build stronger relationships. The reliability of the system was also of great benefit. Mobile operators often experience a huge volume of daily verification requests, but real-time identify verification in stores saves, literally, hundreds of hours.

Creating new opportunities through digital services A multi-channel solution for identity verification, which also works remotely, provides a great opportunity for mobile operators to take the first step towards the creation of a trusted digital identity.

Mobile operators have the opportunity to position themselves as trusted digital identity aggregators by validating the subscriber’s identity. This could then lead to further opportunities in complementary markets that require identity verification, from online gaming and banking to car rental. The opportunities in the public and private sector are legion.

Looking ahead Solutions that streamline identity verification, and protect customers’ identities, are hugely valued by both customers and businesses. Finding the right balance between accuracy and tolerance for user convenience is critical in this field. Mobile operators in Africa that adopt the technology now will see immediate benefits in terms of efficiency and customer service-but, in the long term, they will position themselves as pivots within the digital ecosystems built on mobile platforms.

November 2018 Startupmagazine.co.ke

36

At the back

Travel & Leisure

Machakos People’s Park

Gems of Magical Machakos Peacefully nestled in Eastern Kenya, Machakos is a fast growing county crowned by orderliness, hospitality, hilltops, labyrinthine caves and a fairly remarkable urban space. Conveniently located 56 kilometres from Nairobi, Machakos remains the perfect place to begin and end any safari to eastern Kenya.

By Oroni Tendera

Startupmagazine.co.ke November 2018

Here below are 6 gems of Machakos county: 1.Machakos People’s Park Machakos people’s park is the icon of Machakos county. Only 15 minutes drive from Machakos town, the park offers a wide array of fun-filled activities for adults and children.

Concrete paths snake through the park, offering visitors a breath-taking view of a man-made lake overlooking the park. There is an amphitheatre, dancing fountain, two restaurants and a bar at the park.

Adventurous adults may engage in

37 zip-lining and boat riding at the artificial lake, as children swing in a merry-go-round, ride on horses, have their faces painted and make merry on jumping castles.

The park washrooms are sufficient and spotlessly clean. On top of that, there is a police post right inside the park. Entry into Machakos People’s park is free for individuals and groups of less than ten people.

2. Masinga Dam Reservoir Masinga dam reservoir is a man-made lake located approximately 160 kilometres from Nairobi city. The dam covers about 120 km2 and has a capacity of holding 1.56 cubic metres of water. Commissioned in 1981, it is a great asset in generating electricity and storing water for irrigation.

Masinga dam reservoir is beautifully sandwiched between Mwea game reserve and blue rolling hills.

FRESH.INSPIRING.ANALYTICAL

dian of Mukaa Mukuu farmers’ cooperative.

conducted to explain this rather bizarre phenomenon.

4. Kituluni Hill Kituluni hill, located 12 kilometres East of Machakos town, is the only place on earth where water flows uphill for twenty minutes before changing its course at the peak of the hill. The same mysterious result has been reported on stationery vehicles whose engines have been switched off and parked at the side of the road, next to the hill. The vehicle moves up the hill at a speed of 5kph unaided for a distance of approximately 1 km.

5. Ol Donyo Sabuk National Park Located approximately 70 kilometres from Nairobi in Machakos county, the park is home to buffaloes, Columbus monkeys, bushbucks, baboons and over 40 bird species. Ol Donyo Sabuk mountain, a magnanimous tower in the middle of Athi plains, is covered by a dense forest. Lord Northrop Macmillan was the first white man to settle at the park and his grave is located near the peak of the mountain.

The tarmac road that leads to Kituluni is punctuated with sharp turns and bends.

Midway round the hill, irrespective of the driving speed, cars are usually jerked forward and suddenly accelerate without any visible change on the speedometer.

So far, no scientific study has been

Visitors can enjoy hiking at the mountain.

6. Lukenya Caves It is impossible to talk about the Akamba freedom fighters without mentioning Lukenya caves. Only 5 minutes drive from Mombasa road, the caves were hideouts for Maumau freedom fighters during the pre-colonial period.

Adjacent to the reservoir, is Masinga dam resort that offers its patrons a variety of African and western cuisines as well as boat rides, nature walks, swimming and cycling.

3. Macmillan Castle Visiting the historical Macmillan Castle, 65 kilometres from Nairobi city, means stepping back in time.

Approximately covering a ground as large as three basketball courts, the castle was home to lord William Northrop Macmillan born in 1872 in the US. At the castle, Macmillan rubbed shoulders with mighty and great visitors such as former American president Theodore Roosevelt, British prime minister Sir Winston Churchill, the colonial British governor Sir Evelyn, the governor of Italian East Africa among many others.

The plan to arrest the late Jomo Kenyatta was also formulated in Macmillan castle.

Currently, the castle is under the custoNovember 2018 Startupmagazine.co.ke

38

Coffee Break

Book Review THE 50TH LAW Author: Robert Greene and rapper 50 Cent Reviewer: Oroni Tendera 50 Cent’s past life as a street hustler in the Southside queens portrays hardship, the pursuit of a better life, and what a strong mindset could do for you; he was particularly good at seeking out opportunities even in the darkest times and using it to his advantage.

What this book inspired me with:

What this book is about is being able to conquer the primitive emotion that controls our life: fear.

Greene uses prime examples of historical and present day figures, and explains how even the greatest of writers, architects, and war generals faced failures, roadblocks and constant tribulations.

Startupmagazine.co.ke November 2018

•Fear and how to overcome it. Fear is a primitive emotion and force that drives, and at many times, controls our thoughts, emotions and decisions. Fear is something we must overcome, face, and admit to. Most of the time we ignore fear, and that only leads to a doomed future.

•We all have dreams of being successful, powerful and rich.

Who wouldn’t? Robert Greene does a fantastic job of bringing out the history of historical and inspirational figures from writers, artists, generals, architects, and musicians. He shows their trials and tribulations, and explains that no one got to where they are without facing roadblocks, failures, malignant forces, and time.

•Reading this is like a manuscript of life and how to conquer it little by little. It’s similar to hearing the right tips and advice being whispered over your shoulder; it turns confusion and mystery to methodology and facts.

•Reading this book will not only boost your confidence in pursuing your dreams and finishing goals: it would feel criminal to not put this wisdom into action.

•How to control aggression and when to be forceful and not seductive.

•Learning to master your craft and to do what you love — not do what others expect you to do.

•Learning when to move on and not be stuck in the past. Conquering your fear of change, of how others portray and look at you, and the outcomes of being able to successfully do so.

•The book also teaches you on self-reliance, being independent and not relying on others to do the work for you, being strategic, not greedy or desperate.

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1 DARLING KENYA PRODUCT RELAUNCH

4

2

5

3 1.Media personalities-Maqbull Mohamed and Amina Abdi with Darling Kenya CEO (Center)- Gaurav Kaushai.

2.Elani Band Member-Wambui Ngugi with Hair Hub founder and trichologist- Muli Musyoka during the event.

3.A model showcasing darling hair on a run-

way.

4.ALL SMILEs: A guest at the event.

5.TV Personalities Sharon and Kate Ng’ang’a graced the launch at Radisson Blue in Nairobi.

Darling, with operations in 21 countries across Africa, is a market leader in hair extension products; a category it has pioneered in the continent catering for over 150 million women across the continent.

November 2018 Startupmagazine.co.ke

Talk to the Best Healthcare Providers with Ease and Convenience

•Daktari Africa is Kenyan Telemedicine platform approved by the Medical Practitioners and Dentists Board and by the Pharmacy and Poisons Board (2016) •Enables affordable video consultations and prescriptions •Currently with over 400 doctors (including Specialists) and 600 clients signed up, the site receives over 100,000 hits monthly •Also available at a Goodlife Pharmacy near you

For more information please contacts us: KMA CENTRE, 7th floor, Mara Road, Nairobi Phone : 0204 931 184 E: admin@daktariafrica.com Startupmagazine.co.ke November 2018

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Coffee Break

Blog Review Blog name: therelationshipmirror.com Founder: Alison Reviewer: Adisa Hudson Relationships are very crucial in our day to day endeavors. Sometimes it is family, colleagues, friends and most importantly relationship with God for those who believe.

The blog relationships mirror- a Christian blog - was inspired by the fact that relationships we hold go into a big extent to define our perception and how we look at ourselves. Relationships may build us or destroy us depending with the reflection it gives us. According to Alison, our relationships are a reflection of our true selves.

Every time you find that something is going wrong in one of your relationships,

there’sneed to take a look at yourself !

In the relationship mirror, Allison explores relationships from all angles and finally mirrors them against God’s word.

There is no better mirror than his statutes and commands!

She strongly believes that everything around us is dependent on one thing – the quality of our relationships. Our relationships reflect the conditions of our heart.

In her writing, she constantly reminds the readers that she is not perfect and for sure all the writings will not be from her personal experiences.However she says, “I am human and bound to err from time to

time. My relationship with Christ, however, gives me hope. As He continues to change my heart and make me more like Him, He gives me the wisdom I need to improve my relationships.”

The journey through this spiritual blog will encourage anyone to know that we are all work in progress and God is willing to work in us to improve our relationship with others.

About the Founder– Alison is a wife, mother, daughter, and sister. She loves to encourage people and to help them achieve their full potential in Christ.

Paying your Electricity Bill Paying your Electricity Bill with M-Pesa (Safaricom) 1. Select “Pay Bill” from the M-Pesa menu.

2. Enter the Kenya Power business number 888 888 / 501200 / 800904.

3. Enter your full Kenya Power account number e.g. 123456-01.

4. Enter the amount you wish to pay which should be between KShs.100 and KShs.35,000.00 5. Enter your M-Pesa PIN. 6. Confirm that all details are correct.

7. You will receive a confirmation of the transaction via SMS.

Debit Card / Credit Card

How to Buy Kenya Power Prepaid Tokens via M-PESA Paybill Number 888880/501200/800904 • Go to Safaricom SIM Tool Kit, select M-PESA menu, select “Lipa na M-PESA” • Select “Pay Bill” • Select “Enter Business no.”, Enter Kenya Power Lipa na M-PESA PayBill Number 888880/501200/800904 and press “OK” • Select “Enter Account no.”, Enter your Kenya Power Prepaid Meter Number (e.g. 0100 xxxx xxxx x) and press “OK” • “Enter Amount”, between KShs.100 and KShs.35,000.00 and press “OK” • Enter your M-PESA PIN and press “OK” • Confirm all the details are correct and press “OK” • M-PESA HAKIKISHA. You will get a notification with the intended recipient’s name e.g. “Pay Kenya Power KShs.1,000.00 for Account 0100 xxxx xxxx x Press 1 within 20 seconds to STOP this transaction.”

• Kenya Power will then generate prepaid token valid for your meter and send via SMS.

Paying your Electricity Bill with Airtel Money (Airtel) 1.

2.

3.

4.

Select “Airtel Money’’ from the menu.

Click on “Make Payments”.

Select “Paybill”.

Choose Kenya Power Bill for postpaid bill OR Kenya Power Prepaid for purchase of tokens.

5. Enter the amount you wish to pay.

6. Enter your Airtel Money PIN. 7. Under the reference option, type your full Kenya Power account number e.g. 12345601.

8. Confirm that all details are correct.

9. You will receive a confirmation of the transaction via SMS.

You can check your Kenya Power bill by sending the first part of your account number e.g. 123456 by SMS to 95551.

Powering people for better lives

November 2018 Startupmagazine.co.ke

At the back

Song Review

Title: Level Up Ciara Review by Katherine St. Asaph

Startupmagazine.co.ke November 2018

Ciara’s first single since 2015’s Jackie, “Level Up” is custom-engineered for virality. The track’s named for a micro-feud she started over an Instagram hashtag on a post with her new husband Russell Wilson, and it’s built on the turbo-shaking bones of DJ Telly Tellz’ “Fuck It Up” a Jersey club workout to which hundreds of people heeded the spoken intro: “No matter where you at, no matter where you from, no matter what dance you’re doing, just make sure you fuck it up to this song right here.” Ciara does, reproducing the countdown intro and hook (“fuck it up” becomes “level up”); it’s as instantly effective a sample as “My Boo” in “Body Party,” and producer J. R. Rotem mostly stays out of its way besides inserting a couple of plush bridges for a break.

Not that Ciara needs a break, judging by how she near-effortlessly keeps up with the track’s frenetic pace and with Parris

Goebel and her ReQuest Dance Crew’s relentless choreography in the video. It’s also a defiant statement along the lines of “I’m Out,” with nonchalant delivery and a not-super-subtle dig at the somewhat generic, Dr. Luke-led production on Jackie: “Thank God I never settle/This beat is so much better.” Hard to argue with that.

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November 2018 Startupmagazine.co.ke

Startupmagazine.co.ke November 2018