BL MAGAZINE by Joe

JULY 2019 ISSUE 132 WWW.BIASHARALEO.CO.KE

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ADRIAN GROUP: MENTORING YOUNG ENGINEERING GRADUATES

Mr. Bernard Njoroge, CEO, Adrian Group.

INSIDE

BUSINESS KIT

● MARKETING ● MANAGEMENT ● ICT ● HUMAN RESOURCE

STANDING OUT

● MBELENABIZ: NATIONAL BUSINESS PLAN COMPETITION LAUNCHED ● THE 2019 NATIONAL MICROFINANCE CONFERENCE

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You can now contribute directly into your NSSF account through M-PESA. This is a fast, easy and convenient way to increase your contributions through your mobile phone. Simply follow the instructions listed below to do so: PROCEDURES ON HOW TO MAKE A CONTRIBUTION USING Step 1

Step 2

Step 3

Step 4

M-PESA

Payment

Enter Business

Enter Account

Send Money

Services

Number

Withdraw Cash

Pay Bill

333300

XXXXXXXXXX

Buy Airtime M-Shwari Payment Services My Account

Go to your M-PESA menu and select Payment Services

Step 5

Select Pay Bill in the M-PESA Menu

Step 6

Enter Business Number which is 333300

Enter NSSF Number you wish to pay for

Step 7

Enter Amount

Enter PIN

Pay Bill

3200

****

Pay Bill 333300 Account XXXXXXXXXX Kshs 3200

You will. Received a text message confirming that the amount has been sent to NSSF.

Enter the amount you wish to pay for (Between Kshs. 200 â€“ 70,000)

Enter your M-PESA PIN

Confirm details are correct and press OK

National Social Security Fund

P.O. Box 30599-00100, Nairobi, Kenya | Main Line 020 2729911, 2710552 | Toll Free Line 0800 2212744 Email info nssfkenya.co.ke | Website www.nssf.or.ke

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020-3580167 / 0739-745220 / 0704-066827 Mentor Sacco Society 0704 - 066 827 @MentorSaccoLtd www.mentorsacco.co.ke info@mentorsacco.co.ke JULY 2019

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Contents

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In this issue

Welcome More than a thousand words Articulate

CORPORATE BRIEFS 8 • Safaricom Boosts The Inaugural Afro-Asia Fintech Festival • Melvin Marsh International Awarded ISO 22000:2005 Certificate • Minet Kenya Launches Insurance Cover For Boda-Boda Operators • Majid Al Futtaim To Open Its First Carrefour Stores In Uganda • Nova Pioneer And Laptrust Launch Secondary Schools In Eldoret • VoLTE: Another First From Safaricom • Shelter Afrique Reaches Agreement With Lenders, Resumes Underwriting Of New Businesses • Women Enterprise Fund And Coca-Cola Renew Deal To Empower 285,000 More Women • ZEP-RE Records 17% Growth In Written Premium • Shelter Afrique And Everest Limited Unveil A New Project • Two Kenyan Teams Win $100,000 in Prize Money through the Annual Cisco Global Problem Solver Challenge • National Bank Issues Advisory Circular to Shareholders on KCB Bid • Coca-Cola Introduces New Range Of Beverage Portfolio

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STANDING OUT 24 • The 2019 National Microfinance Conference • MbeleNaBiz National Business Plan Competition launched BUSINESS KIT ● Marketing ● Human Resource ● ICT ● MANAGEMENT

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54. KILIMO

@biasharaleomag

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MAIN STORY 44 • Adrian Group: Mentoring Young Engineering Graduates

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Biashara Leo Magazine

A SHOT IN THE ARM FOR YOUNG ENTREPRENEURS

ut of the 850,000 jobs that were created in our country last year, 83 percent were from the micro, small and medium enterprises (MSMEs) segment. MSMEs are found in various fields of the economy including agriculture, information and communications technology (ICT), retail business, food and beverages as well as transport among others. Significantly, MSMEs offer employment opportunities to the youth graduating from universities and tertiary institutions, besides form four and standard eight leavers. Only a few of these youth are able to secure white collar jobs in the formal economy. Over the years, the number of unemployed youth in the country has been growing at a very fast rate, giving the government a lot of challenges. Rather than keep on applying for jobs in the formal sector that are not forthcoming, these young people have been encouraged to embrace entrepreneurship. To that end, a lot of programmes in both the public and private sectors on entrepreneurship have been rolled out.

Nevertheless, starting a business and nurturing it to success is not a walk in the park. Various studies have established that most businesses go under at the start-up stage. It is at that early stage that entrepreneurs grapple with challenges like shortage of capital, inability to access market and poor cash flow. A majority of them therefore throw in the towel. Whereas the government is keen on having many businesses being formalized upon attaining the necessary growth so that they can generate revenue to the exchequer through taxation, that can only happen if they are able to survive the gruelling start-up stage. It is against this background that we applaud the Government of Kenya and the World Bank for coming up with the ongoing ten week online competition – MbeleNaBiz. The winners of this competition will receive handsome grants that they shall inject in their start-ups in order to accelerate their growth (See this story on page 24). Given our close working relationship with young entrepreneurs over the years, we have no doubt that this is a step in the right direction. May the best young entrepreneurs emerge victorious. george.gichuki@biasharaleo.co.ke

MANAGING EDITOR: George Gichuki EDITORIAL ASSISTANTS : Brenda Wambui , Ruth Kang’iri, Milka Karuri MARKETING MANAGER: Emma Nuthu BUSINESS DEVELOPMENT MANAGER: George Marenya SUBSCRIPTION & CIRCULATION: Joe Mwangi EDITORIAL CONTRIBUTORS: Carolyne Gathuru, Dr. Kellen Kiambati, Eunice Macharia Miriam Maina, Peter Muya, Nelson Nyoro DESIGN AND LAYOUT: Felix Rurigi ILLUSTRATIONS: Stanislaus Olonde

PUBLISHED BY: ASANTE MEDIA LTD. P.O BOX 25239-00100 NAIROBI TEL: 020-2025755 Cell: 0733 966 270 Email: info@biasharaleo.co.ke Website: www.biasharaleo.co.ke

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Views expressed in this publication are those of the authors and do not necessarily reflect the position of the publisher. ©2019 Asante Media Ltd. All rights reserved. Material may be reproduced only by prior arrangement and with due acknowledgement to BL Magazine.

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More Than A Thousand Words Pam Mutembei, business and marketing head, Credit Bank : “Having in place systems and processes for EHub presents businesses with an opportunity to evolve into investor ready entities. Further, it helps each business to set itself on a controlled growth trajectory devoid of mishaps.”

Kwesi Quartey, deputy chair, African Union Commission : “If successfully implemented, AfCFTA could generate a combined consumer and business spending of $6.7 trillion by 2030, accelerate economic diversification and facilitate job creation for women and youth.”

Phyllis Wakiaga, CEO, Kenya Association of Manufacturers (KAM) : “It is possible to achieve a healthy balance that does not pit the workers’ cost to live against industry’s cost to survive.”

Willy Kimani, Naivas chief operations officer: “We keep growing because we are customer-centric and are great in terms of pricing. We are also strategic on how we open new branches and locations. This remains key since we open branches in places that will reach and serve as many customers as possible.”

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Articulate Unlocking potential

Prize Letter

Networking is essential to businesses and reading the article on the East Africa Social Enterprise Network (EASEN) was useful because the organization is promoting the growth of social enterprises. By helping social enterprise leaders and staff in recognizing business opportunities, EASEN is enabling them to become successful entrepreneurs.

Antony Kioko, businessman, Thika, Via email

Creative idea I learnt from the article that you carried in your June 2019 issue on the Sanergy Fresh Life Toilets that this is an innovative idea that caters for both human beings’ and plants’ life. The article is an eye opener for me and other likeminded entrepreneurs who are keen on creating jobs for people in the slums .Kudos for coming up with the beautiful piece.

Cecilia Ondiek, entrepreneur, Nairobi, via email

Saving lives Since polluted water is a major cause of infants’ deaths, people should adopt Aquatic Biological Integrated Systems ( ABIS) in order to provide healthy water treatment , while funding social entrepreneurs in order to save lives. I enjoyed reading the article on AIBS in your June 2019 issue.

Caleb Kipkorir, researcher, Kilifi

Biashara Leo will award a one year free subscription to the reader whose letter is chosen as the prize letter for a particular edition. (Existing subscribers will recieve a free annual renewal). Your view on entrepreneurship and management are of importance to this magazine. We encourage you to share them with thousands of our readers in Kenya and the entire East Africa. Please send your views and opinions to: The Editor, Biashara Leo, P.O Box 25239-00100 Nairobi, Kenya E-mail: info@biasharaleo.co.ke

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All letters must bear the writer’s name and address, although you may request your name to be withheld. Letter’s can be edited for clarity.

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CORPORATE BRIEFS

Central Bank of Kenya Governor, Dr. Patrick Njoroge (right) receives a cheque worth Kshs. 5 million from Safaricom chief financial services officer Sitoyo Lopokoiyit in respect to the sponsorship of the inaugural Afro-Asia FinTech Festival 2019.

SAFARICOM BOOSTS THE INAUGURAL AFRO-ASIA FINTECH FESTIVAL

afaricom has announced a Kshs.5 million sponsorship towards the inaugural Afro-Asia FinTech Festival 2019- ‘Fintech in the Savannah’. The two day festival will be co-hosted by the Central Bank of Kenya (CBK) and Monetary Authority of Singapore (MAS).It is themed: ‘Sustainable Finance; Inclusive and green.’

The festival will be held at the Kenya school of Monetary studies on 15th and 16th July 2019 for the first time in the region. It will provide a platform for connections, collaborations and exchange of ideas between Africa and Asia and also seek to explore sustainable financial services innovations from emerging Afro-Asian Markets. “The festival is a great platform for us as

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it presents opportunities to showcase the progress that Safaricom has made over the years towards financial technology and to interact with peers in fintech across the globe,” said Sitoyo Lopokoiyit, chief financial services officer, Safaricom. “Two years ago, we opened up our Daraja API portal giving over 16,000 developers an opportunity to integrate their businesses with M-Pesa seamlessly. This is in line with our strategy to deepen financial inclusion and give developers a chance to come up with new innovations,” said Sitoyo.

Delighted “We are indeed delighted to host such a unique event which shows where we are as an African country in the spectrum of Fintech, we are at the front,” said Dr. Patrick Njoroge, Governor, Central Bank of Kenya. “We are the pacesetters and we are not just

excited about technology but the difference it is making for millions of people in Africa and billions around the world,” he added. The event which seeks to bring together over 5,000 participants, policy makers, industry leaders, entrepreneurs, innovators and researchers across the world is modelled after the Singapore fintech festival. It will provide a platform for players to exchange ideas, forge partnerships and nurture thriving fintech ecosystems.

Some of the topics that will be discussed include: artificial intelligence, big data, cyber security, technology risks, social impacts (SME financing, financial literacy and inclusion, sustainable finance and spirit of innovation among other key areas in fintech. Kenya is one of the African countries that has grown significantly in technology and is seen as a lucrative market for fintechs. Last year, two Kenyan companies, Cellulant, and Tala emerged among the top 50 emerging fintech companies in the world in the KPMG FinTech100 report.

CORPORATE BRIEFS

MELVIN MARSH INTERNATIONAL AWARDED ISO 22000:2005 CERTIFICATE

Ms. Flora Mutahi, the founder and CEO of Melvin Marsh International receives the ISO 22000:2005 certificate from Mr. Charles Lang’at, manager, SGS.

elvin Marsh International, trading as Melvins Tea in Kenya, has been awarded the ISO 22000:2005 certificate. Mr. Charles Lang’at, manager, SGS (the certification body) graced the event together with Melvin’s partners - East African Trade Hub’s Dr. Fred Kong’ong’o and Ms. Margaret Ouma - who guided the company towards attaining this certification. “East Africa Trade Hub supported several companies through the process of certification and Melvins Tea is the first among them to be successfully recertified,” said Dr. Kong’ong’o, adding that the company achieved this milestone by working hard and being focused. Food safety The International Organization for Standardization (ISO) 22000:2005 is a food safety management system that can be

applied to any organization in the food chain – from farm to fork. It gives confidence to customers as it shows that a company has

a food safety management system in place. Having an ISO 22000 certification can help make customers feel more secure in the safety of a business’s product.

“Melvins is a high performance organization and we believe that this standard has helped us in the past ( and will continue to help us) unlock new markets while growing our market share in Kenya,” said Ms. Flora Mutahi, the founder and CEO of Melvin Marsh International. The company sees this as a step closer to achieving its vision.

Melvins Tea has been in the tea business for the last 25 years. It introduced flavoured teas into the Kenyan market. “Innovation is a key pillar for us and we continue to be at the forefront of developing products to make tea exciting and refreshing for all age groups and communities, “Ms. Mutahi concluded. JULY 2019

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CORPORATE BRIEFS

MINET KENYA LAUNCHES INSURANCE COVER FOR BODA-BODA OPERATORS

inet Kenya has launched a public service vehicle insurance solution targeting the boda-boda sector. The new product dubbed ‘RaidaSure’ seeks to offer a solution to boda-boda riders in compliance with the expected changes in the Boda-Boda transport system following the National Treasury and Ministry of Interior directives. It is now mandatory for boda-boda and tuk tuk riders to procure a third-party insurance cover. The Ministry of Interior, on the other hand, requires players in the boda-boda and tuk tuk business to comply with the traffic rules and regulations applicable to other motorists. “This is an innovative bundled product that has been developed in close collaboration with the players in the boda-boda sector, taking into account some of the feedback we received from the end users,” said Minet Kenya associate general manager in charge of business development Latif Wekesa. “We are upbeat that the new product will be useful for them in helping meet the requirements of the new regulations as well as exposing them to the real benefits of insurance to their businesses.” Mr. Wekesa was speaking at a meeting convened by the company to train and sensitize boda-boda operators on the need to have insurance cover for their businesses.

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It is estimated that there are over 1million boda-boda operators in the country.

Product bundles The new product offers motorcycle comprehensive cover, a motorcycle third party cover, and a hybrid motorcycle third party plus personal accident extension.

The comprehensive cover offers indemnity against loss or damage to motor cycles by accident means, theft, fire, malicious damage (including accessories), liability to third parties and passenger liabilities arising out of use of motor cycles owned or operated by the insured and attracts a premium of Kshs 6,576. With additional premiums of Kshs 1,000, personal accident cover for the rider can be extended. A Key feature on personal accident cover is enhancement of the last expense benefit to include both accidental death and natural death (but subject to three months waiting period.

Third party PSV cover which is mandatory as per the law offers indemnity against injuries or damage to third party’s property and passenger liabilities arising out of use of motor cycles owned or operated by the insured and attracts a premium of Kshs 3,560, The hybrid third party PSV cover on the other hand offers combine the mandatory cover and personal accident at a premium of Kshs 4,560

Boda-boda Safety Association national chairman Kevin Mubadi lauded Minet for unveiling this new product, adding that it resonates with the members’ insurance needs and the pricing is reasonable.

“Currently, most insurance companies offer covers with premiums ranging between Kshs. 12,000 and Kshs. 15, 000, which is not affordable to most of our members, but we believe that with Minet’s bundled covers members will be able to pick what suits them and still be able to meet the requirements of the new regulations,” said Mr. Mubadi.

Mr. Wekesa said Minet was in discussions with various microfinance institutions to provide financing for premiums payment to make it affordable to many. “Additionally, we want to improve accessibility through partnerships with underwriters, simplify procuring and claim process through the use of the association, and educate boda-boda members through training and road shows,” he added. The product is also available on digital platform in order to expand accessibility throughout the country. Some of the underwriters Minet is working in partnership with include Monach Insurance and Pioneer Assurance.

CORPORATE BRIEFS

MAJID AL FUTTAIM TO OPEN ITS FIRST CARREFOUR STORES IN UGANDA

ajid Al Futtaim, the leading shopping mall, communities, retail and leisure pioneer across Middle East, Africa and Asia, is set to open its first Carrefour stores in Uganda in the upcoming months, as the retailer seeks to cater to evolving customer needs and responds to the growing demand for modern retail in Kampala and its surroundings. Majid Al Futtaim will operate its first Carrefour store in Oasis Mall, with over 150 employees recruited for its maiden Ugandan outlet, which promises shoppers great value and choice, through a combination of offers and promotions. The store will enable customers to purchase quality products at unbeatable prices, within an excellent shopping experience. Hani Weiss, CEO of Majid Al Futtaim - Retail said: “Following Carrefour’s success in Kenya, we are proud to introduce our plan for the first ever Carrefour stores in Uganda,

which will further cement our position as a leading customer-centric retailer, bringing one of the largest retail chains in the world to the heart of the country.”

“This announcement brings us a step closer towards realizing our long-term expansion plan for East Africa.” He went on to say: “Uganda is considered one of the fastest growing economies in Africa, and we are delighted to partner with local stakeholders to offer a world-class retail experience to the Ugandan community, specifically tailored to their needs.”

As part of its expansion strategy, Majid Al Futtaim is planning to open its second Carrefour store in the country (Uganda) in early 2020 at Metroplex Kampala, creating up to 150 additional direct and indirect employment opportunities for local talents. The entry of the retailer into the market will boost the country’s economy as it will work with local suppliers, manufacturers,

producers and farmers across Uganda and contribute to local direct and indirect employment. Carrefour will also introduce customer service standards, a more sophisticated shopping experience, and best practice for in-store hygiene processes. In addition, the stores will stock a mix of international and local brands all certified by relevant government agencies, applying international hygiene standards in order to guarantee food safety to customers.

Majid Al Futtaim prides itself in upholding the highest international standards and best practices. This includes ensuring positive supplier relations through prioritising local partners, enhancing supplier efficiency and engaging them with continuous training and support.

Majid Al Futtaim holds the exclusive franchise rights to operate Carrefour in 37 countries and currently operates over 270 Carrefour stores in 15 countries. Uganda will be its 16th market. Carrefour started operations in East Africa with its entry into the Kenyan market in 2016 and operates seven stores to date, employing more than 1,400 staff members. JULY 2019

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CORPORATE BRIEFS

H.E Hon Jackson Mandago; UasinGishu County Governor (third right) at the Nova Pioneer Boys Secondary and Girls Secondary schools groundbreaking ceremony held in Eldoret. He was joined by Mr. Christopher Khaemba, a co-founder and director, Nova Pioneer (extreme right), Mr. Hosea Kili; Laptrust group managing director/CEO (second right), Bungoma deputy governor. Prof. Ngome Kibanani (fourth right), Dr. George Kwedho; Laptrust chairman (third from left), Mr. Peter Musa Kitesho; Laptrust trustee and Ms. K. Danae Pauli; Nova Pioneer’s managing director in East Africa (extreme left).

NOVA PIONEER AND LAPTRUST LAUNCH SECONDARY SCHOOLS IN ELDORET

ova Pioneer has broken ground for the construction of two new secondary schools located in Uasin Gishu County, in a joint partnership with the Local Authorities Pensions Trust (LAPTRUST) who have leased the land for the same. The institutions will respectively be a boys’ and girls’ school. They are set to be complete and ready for intake by January 2020. Each will offer the Kenya National Curriculum, delivered in world-class teaching methods that develop character, skills and connection, preparing students to lead and innovate in the 21st century.

Speaking at the event, Uasin Gishu Governor Hon. Jackson Mandago welcomed the investment in the county. He committed the support of the county government to the project. “As a nation and county, we have been lagging in terms of innovation, to the extent that we seem not to understand the resources we have. We believe Nova Pioneer Schools is going to be the catalyst that we need in this century to enable us to realize the enormous resources we have

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in our boundaries and how to utilize the same,” added Governor Mandago.

Nova Pioneer East Africa Managing Director, Ms. K. Danae Pauli noted that the move was informed by the rising need for world-class education to compete in today’s world, thanks to technology that has made it a global village. ‘‘We are a Pan-African network because we believe that change that will make a difference in the continent goes beyond a single school. By connecting our students across our network and the world beyond through our international standard education adopting the Kenyan curriculum, we will make the necessary difference in our students’ lives,” said Ms. Pauli. On his part, LAPTRUST chief executive officer, Hosea Kili noted that the institution is indeed a welcome move in Eldoret following the establishment of the first Nova Pioneer School in Tatu City. LAPTRUST, through the partnership, will enhance returns for its members and continue to ensure a healthy funding level for sustainability for the fund.

The organisation will own the land and the buildings accordingly.

Ideal location Located near Eldoret town, the full-boarding secondary schools will be developed separately across 20 acres of land. The facilities will include modern classrooms set-up with technology that enhances learning, boarding facilities as well as grounds for sports and clubs’ activities.

The partnership between Nova Pioneer and LAPTRUST ensures that the school focuses its resources on its core strength - delivering world class education to transform the lives of all students across its network. Nova Pioneer’s current schools have had a lot of positive impact. The high school students have won business competitions against university students and developed software applications launched on the Google App store. They have also featured strongly in innovation competitions such as Innovate Kenya organized by GMin where their students were some of the finalists in the country. In the months gearing up toward the start of the 2020 school year, Nova Pioneer will be conducting various open days in 2019 to give parents and students a chance to learn more about how to apply for enrolment.

CORPORATE BRIEFS

Charles Wanjohi, Safaricom director consumer business (second right) explaining to Wilson Mwangi (far left) Tecno Mobile operation manager, Mark Misumi business manager HMD Global Oy, Charles Kimari Samsung head of department internet and mobile and David Warui Huawei accounts manager how the VoLTE HD voice and video call operates.

VoLTE: ANOTHER FIRST FROM SAFARICOM

afaricom has launched voice and video calls over its 4G network, popularly known as Voicer over LTE (VoLTE) and Video over LTE (ViLTE). The services are immediately available countrywide to any Safaricom customer with a VoLTEsupporting 4G device and a 4G enabled SIM Card, and will be offered at no additional cost compared to standard calls.

VoLTE offers a richer calling experience and clearer calls achieving high definition voice quality. This is due to the ability of 4G networks to support a higher data capacity which in turn can carry up to three times more data per call compared to 3G networks and six times more compared to 2G networks. VoLTE also eliminates background noise, background jitter and other distortions that are characteristic of older calling technologies. “Today, we are proud to introduce the latest calling technology across the country which will enable Kenyans make voice and video calls over 4G. Beyond crystal clear voice calls, VoLTE further empowers our customers to better connect with families, friends and at work with high-quality video

calling at no extra cost. Any Kenyan now has the freedom to make crystal clear calls and to make and receive clear video calls wherever they may be, on our 4G network,” said Sylvia Mulinge, chief customer officer, Safaricom.

Customers on VoLTE will also enjoy the ability to simultaneously make calls and browse at 4G speeds. Previously, customers on 4G saw their data sessions slow down to 3G speeds when on calls. Due to its design, 3G technology typically results in slower speeds for the duration of a call as the older technology carries both voice and data traffic on the same channel, hence reducing the amount and speed of data that can be carried during a call. Calls on VoLTE can be distinguished by the “HD Calling” symbol which appears when a VoLTE call is in progress. Customers can also tell when they are on VoLTE through a symbol in their status bars. The technology also allows a customer to switch between voice and video calls during a VoLTE call, though video calls will only be possible if both the caller’s and receiver’s device support the technology.

Through the service, Safaricom is looking to meet rising demand for video calling which is being driven by increasing data and smartphone usage. The company also sees an opportunity in businesses that stand to benefit from the improved call clarity, especially when making calls on the move or conference and group calls over mobile phones. Safaricom also sees a demand for video calls among businesses (especially small and medium enterprises) which are increasingly relying on mobile video for marketing and trading.

Safaricom has also committed to have the service available to a majority of Kenyans by embarking on an ambitious expansion of its 4G network. The company will double the number of 4G base stations across the country to more than 5,000 by the end of the year. In addition to activating VoLTE and ViLTE on its network, Safaricom has also introduced a wide range of affordable VoLTE capable devices to the market, including the Neon Ray and the Neon Nova. All devices are immediately available at all Safaricom shops, Safaricom dealers, and Masoko. Besides the two devices, VoLTE is also available on select Samsung, Nokia, Tecno, Itel and Huawei devices. Customers using these devices may need to update their software in order to enjoy the service. JULY 2019

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CORPORATE BRIEFS Shelter Afrique is the only pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa the expected support from shareholders with regards to capital subscription calls of 2013 and 2017,” he said. New Capital He further said the shareholders have also given the company a nod to raise new capital through equity and debt options to fund its operations in the next five years of its strategic plan, through direct funding (line of credit), co-financing and bridge finance for working capital lines.

Shelter Afrique chairman Daniel Nghidinua (right) Andrew Chimphondah.

and the chief executive officer,

SHELTER AFRIQUE REACHES AGREEMENT WITH LENDERS, RESUMES UNDERWRITING OF NEW BUSINESSES

an-African housing financier Shelter Afrique at the 38th Annual General Meeting (AGM) held recently in Marrakech, Morocco announced that it had reached a new agreement with lenders that the company was ready to resume new business. Appraising shareholders at the AGM, Shelter Afrique managing director and chief executive officer Andrew Chimphondah said the company had successfully negotiated and concluded debt restructuring agreement with all the eight lenders, comprising two commercial banks and six development finance institutions. It had also effectively restructured the US108 million debt to be repaid over a five -year period from the existing loan book and not from members’ contributions.

“This has enabled us to regularize the servicing of principal debt obligations with our lenders post the Standstill Agreement period which expired in July 2018. The

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conclusion of debt restructuring exercise is particularly important in that it now opensn an avenue for us to explore new funding options,” Mr. Chimphondah said.

Shelter Afrique temporarily halted undertaking of new projects in 2016 to pave way for restructuring of the company’s operations and for the development of a new strategic direction. Mr. Chimphondah said the company had successfully completed its restructuring programme and was in the process of implementing its new 2019-2013 strategic plan which broadly focuses on financial stability, enhanced shareholders value and organizational sustainability.

He said the primary focus is turning around the company’s financial performance from loss making to financial viability by 2020 and overall financial sustainability by 2023. “A prerequisite in achieving this is the resumption of new business in 2019 and

“We have been given a green light by shareholders and we’ll soon kick-off road shows to that effect. Already, we have started off a process of identifying active member countries for local currency bonds starting 2021. We are also working on restoring equivalence of Moddy’s Ba1 credit rating, after which we’ll consider tapping into Eurobond market for modest ticket issues of upto US$300 million on committed project lines,” Mr. Chimphondah explained. Second term The shareholders also voted unanimously to re-elect Mr. Daniel Nghidinua as the chairman of board of directors for the next two years. Mr. Nghidinua first took over the chairmanship of the 11th Shelter Afrique Board in March 2017, at a time when the company was undertaking a major overhaul of its business and its structure. He has overseen the positioning of the company as an investment-grade organization , a capital drive and opening of membership to new Class C shareholders.

Accepting his re-election, Mr. Nghidinua said: “I’m overwhelmed by the confidence shareholders have in me and the entire Board and our promise to them is to continue steering the company in the recovery path to create shareholder value as it meets its mandate of financing affordable housing in member countries.” Shelter Afrique is the only pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa. The company is owned by 44 African governments, the African Development Bank (AfDB) and the Africa Reinsurance Company.

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CORPORATE BRIEFS Women Enterprise Fund is a government institution that empowers women socially and economically, by offering them subsidized credit for enterprise development training, financial services, as well as access to peer networks through a business club for mentoring and ideas sharing. In 2018, the initiative empowered 161,000 Kenyan women.

The Coca-Cola company’s Vice President for Global Public Policy, Environmental Sustainability and Social Impact, Michael Goltzman (left) shakes hands with the chief executive officer of Women Enterprise Fund, Engineer Charles Mwirigi after their meeting to renew their partnership at the Coca-Cola Headquarters in Upperhill, Nairobi.

WOMEN ENTERPRISE FUND AND COCA-COLA RENEW DEAL TO EMPOWER 285,000 MORE WOMEN

omen Enterprise Fund (WEF) and CocaCola Central, East and West Africa Limited (CEWA Ltd) have announced that a further 285,000 Kenyan women will be empowered in their joint economic empowerment programme. This partnership established in 2014, is rooted in their shared interest in creating a fair and equitable environment to help women overcome barriers and build sustainable businesses. From Coca-Cola’s perspective, women form a central pillar of its sustainability agenda which is linked to their global effort to economically empower five million women by 2020. With 557,000 Kenyan women already impacted through business skills training and access to loans to date, this recommitment will play a significant role in helping women entrepreneurs succeed. By and large, it will also support communities to thrive. To make this possible, WEF has renewed its cooperation with Coca-Cola who will be investing Kshs 12.6 million (US$125,000) to support the initiative.

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Globally 5by20 has enabled the economic empowerment of 3,278,866 women by year end 2018. “The micro, small and medium enterprises (MSMEs) owned by women are the engines through which the growth objectives of the developing countries such as Kenya can be realized. Despite their potential to create employment, create wealth and develop innovation, women owned MSMEs encounter various barriers and as a result , many perform dismally and ultimately fail. Such barriers include inability to access credit from financial institutions, lack of relevant business information and lack of inadequate entrepreneurship programmes hence investments in entrepreneurship training is critical,” said Eng. Charles Mwirigi, CEO – Women Enterprise Fund The public-private partnership aims to address and remove barriers that women may experience in creating economic opportunities by providing access to loans and grants to enable them start and grow their enterprises. Participants in the programme receive business skills

“Women are not only the backbone of communities across Kenya but they also play a crucial role in boosting local economies. The progress made by this partnership to date has been inspiring and encourages us to persist in ensuring that women across the country have access to the expertise, education and support that will allow them to prosper and succeed in business. As we renew our partnership with the Women Enterprise Fund, we intend to continue to address the needs of female entrepreneurs in Kenya as well as sustain our growth towards our 2020 target,” said Michael Goltzman, Vice President, Global Policy, and Environmental Sustainability & Social Impact.

Formed in 2007, the Women Enterprise Fund is a government institution that empowers women socially and economically, by offering them subsidized credit for enterprise development. They also carry out capacity building through business skills and value chain training. The Fund aims at empowering one million women in Kenya by end of the 2019 / 2020 financial year which is in line with The Coca-Cola Company’s 5by20 goals. Additional partners in the golden triangle initiative that brings together capabilities from across the private sector, public sector and civil society include Hand in Hand International, Export Promotion Council, UN Women and Jomo Kenyatta University. “When we started with WEF we only expected to get financial assistance but we have also benefited a lot from business skills training that have empowered us to better manage our businesses for profit and business sustainability and we very grateful to WEF and all their partners for the training initiatives,” said Mary Wakarindi, Member; Narindisoi SHG – Starehe Constituency, Nairobi.

CORPORATE BRIEFS Kenya is a founder signatory member state of ZEP-RE and currently hosts the headquarters of the company in Nairobi ZEP-RE Managing Director Ms. Hope Murera said the company recorded growth in its key markets of Kenya, Zimbabwe, India, Uganda, and Tanzania supported mainly by growth in motor and medical classes.

ZEP-RE managing director Ms. Hope Murera, ZEP-RE Chairman William Erio, COMESA Secretary General Ms. Chileshe Mpundu Kapwepwe, and Principal Secretary, State Department of Trade, Ministry of Industry Trade and Cooperatives Dr. Chris Kiptoo look through the company’s financial report at the 28th Annual General Meeting in Nairobi.

ZEP-RE RECORDS 17% GROWTH IN WRITTEN PREMIUM

EP-RE (PTA Reinsurance Company) recorded a marked growth in written premium in the financial year ending December 31, 2018 of USD178.5million up from USD152.1 million recorded in 2017, representing a 17% growth. The company however experienced a significant rise in claim, a region wide phenomenon that saw most of the regional markets make losses at both insurance and reinsurance level. Despite an increase in loss ratio, the company still realised a profit of USD 10 million.

Speaking at the company’s 28th Annual General Meeting, which was officially opened by the Dr. Chris Kiptoo, Principal Secretary, State Department of Trade representing Kenya’s Cabinet Secretary for Industry Trade and Cooperatives Peter Munya, ZEP-RE Chairman William Erio said unlike previous years, exchange rates for most local currencies were stable and resilient during the year save for a few currencies which depreciated. “The combination of these two factors – deterioration of loss experience and currencies depreciation - impacted on the

company’s profitability and reducing the realised profit to USD10.14 million in 2018. Additionally, the insurance industry has been facing pricing pressures and generally lower market penetration. These challenges have had a direct impact of increasing the cost of doing business and a reduction in margins. This is reflected in the industry performance in 2018 which was one of the few years with record high losses,” Mr. Erio told shareholders.

Total income (net earned premium, investment income, commission earned and other income) for the year 2018 went by 9.6% to USD148 million up from USD135 million recorded in 2017. Gross claim however increased from USD83 million in 2018 up from USD66 million in 2017. Total assets grew by 2.8% to reach USD383.9 million, total liabilities rose by 5.68% to USD154.2 million, with shareholders’ funds hitting USD USD300 million in 2018. “The strong balance sheet has been key in helping the company provide security to market players in the region and maintain its investment grade credit rating of B++ (AM Best) and a claim paying ability rating of AA+ (GCR Ratings),” Mr. Erio said.

“ZEP-Re also has a growing international reputation in underwriting infrastructure projects, property, casualty, life, and marine. These sectors continue to support and sustain our growth,” Ms. Murera said. Dr. Kiptoo lauded the role played by ZEP-RE in supporting and positively transforming the local and the region’s insurance industry. “We note with gratitude large claim payouts you have made to businesses in Kenya including payouts to small scale traders at Gikomba market, the JKIA fire claim, the Westgate terrorism claims, and the Dusit terror attack. As a government we are looking up to insurance and re-insurance companies like ZEP-RE to support our Big Four Agenda aimed at transforming Kenya into a newly industrialized country,” Dr. Kiptoo said.

Kenya is a founder signatory member state of ZEP-RE and currently hosts the headquarters of the company in Nairobi. Inclusivity Commending ZEP-RE for sustained performance over the years,Common Market for Eastern and Southern Africa (COMESA) Secretary General Ms. Chileshe Mpundu Kapwepwe said the company had remained true to its developmental role as outlined in its founding objectives. Ms. Kapwepwe said COMESA supports ZEPRE’s efforts to promote insurance inclusivity and financial deepening in the region.

“ZEP- RE has submitted recommendations on how we can grow insurance inclusiveness within the COMESA region and we are willing to support the initiatives to ease access to insurance especially by the lowmiddle income population,” Ms. Kapwepwe said. The board has recommended a dividend of USD2.5 million for 2018.

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CORPORATE BRIEFS

TWO KENYAN TEAMS WIN $100,000 IN PRIZE MONEY THROUGH THE ANNUAL CISCO GLOBAL PROBLEM SOLVER CHALLENGE that have come out on top, who have demonstrated the use of technology to solve critical challenges that affect livelihoods and communities in the country,“ says Country General Manager (GM) for Cisco East Africa and Indian Ocean Islands, David Bunei.

This year, 335 teams from around the world competed for a total of US$300,000 in prizes. Teams put forth solutions addressing challenges across the environment, healthcare, critical human needs, and more. Every team showed a deep understanding of the magnitude of the problems facing our global community, and developed innovative solutions to address them.

Illuminium Green Houses, the Cisco Problem Solver Challenge Winner.

enya’s Solar Freeze and Illuminum Greenhouses have been named as winners in Cisco’s Problem Solver Challenge. Solar Freeze won the first runner up position, getting US$75,000, and Illuminum Greenhouses was the second runner up, getting US$25,000. Both are from Jomo Kenyatta University of Agriculture and Technology. Solar Freeze provides portable solar cooling units that allow farmers to move

and store smaller quantities of fresh produce more frequently. Illuminum Greenhouses provides smallholder farmers with affordable greenhouses and drip kits equipped with solar powered and IoT sensors that enable greater protection of crops from pests and diseases and increased water efficiency through automation. “We celebrate the young people who took part in this season of the Cisco Global Problem Solver challenge. I am particularly proud of the two Kenyan companies

“These two companies have illustrated that Kenyans have great ideas that are globally competitive and we are looking forward to seeing the positive impact these two companies will have for Kenyans,” says Bunei.

The entries for the Cisco Global Problem Solver Challenge are evaluated on four levels, namely, the innovative technology solution which accounts for 33% of the rating, feasibility of the solution (24%), impact and scale potential (33%) and finally on clarity – how well the solution is articulated at 10%.

The African continent had three winners, two from Kenya mentioned above and one from Nigeria known as TREP LABS. The Grand prize of $100,000 was awarded to Oorja from Imperial College London, United Kingdom of Great Britain and Northern Ireland. The Cisco Global Problem Solver Challenge was launched in 2017 to recognize postsecondary and recent graduates who have developed a technology solution that drives economic development and/ or solves a social or environmental problem. The 2019 Challenge attracted more than 300 submissions from around the world, all competing to get a share of the awards totalling $300,000 in prize money. The winners will gain visibility, funding, and encouragement through the challenge, enabling the social entrepreneurs to move their solutions to the next level.

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NATIONAL BANK ISSUES ADVISORY CIRCULAR TO SHAREHOLDERS ON KCB BID

he board of National Bank has issued an advisory circular to its shareholders to assist them to make an informed decision to either accept or reject the offer from KCB group PLC of acquiring the bank. The circular, which has been approved by the Capital Markets Authority (CMA), includes an independent advisors’ report and an acceptance form. According to a statutory notice from National Bank published in the local dailies, the circular will be sent to all shareholders via their latest registered addresses and a copy uploaded on the company’s website. The issuance of the circular follows the serving of a takeover document by KCB group in June. The document detailed material information from the offeror (KCB) on the bid to acquire a hundred percent (100%) of National Bank’s ordinary shares upon re-designation of the preference shares into ordinary shares.

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According to the circular, the board recommends the offer to the shareholders for consideration based on several factors. In a letter to shareholders contained in the circular, the chairman to the board Mr. Mohamed Hassan partly states; “Furthermore, as previously advised to the shareholders, although NBK remains a strong bank, it requires additional capital to meet regulatory capital requirements and to grow its business, which capital can be provided by KCB.”

The transaction is also subject to the procurement of regulatory approvals from, amongst others, CMA, the Central Bank of Kenya, and the Competition Authority of Kenya

Ultimately, shareholders are expected to make their own decision. The board has asked them to utilize the detailed information to make a decision or seek the advice of a stockbroker, investment advisor, accountant, banker, or other professional advisors. According to the circular, the take-over bid from KCB has outlined several predicating factors. Some of the key factors include the proposal that National Bank will continue to operate as a separate subsidiary of KCB (for two years) and therefore service delivery to its customers will remain uninterrupted. Equally, the combined balance sheets of the two banks will increase their capital capacity. The transaction is also subject to the procurement of regulatory approvals from, amongst others, CMA, the Central Bank of Kenya, and the Competition Authority of Kenya.

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CORPORATE BRIEFS

Chief Administrative Secretary, Ministry of Transport and Infrastructure Dr. Chris Obure and Cairan Daniel Nghidinua, Shelter Afrique watering a plant to mark the launch of Everest Apartment Phase II. With them is Shelter Afrique CEO Andrew Chimphondah (right) and Everest Limited Managing Director James Muriuki .

SHELTER AFRIQUE AND EVEREST LIMITED UNVEIL A NEW PROJECT

an-African housing development financier, Shelter Afrique and Everest Limited have completed the development of the second phase of Everest Park Apartments, a multi-million-shilling property jointly owned by the two companies.

The mixed-use complex located in Mavoko area along Mombasa road targets the growing low to middle-income population with units selling at Kshs.2.95m, Kshs. 4.95m and Kshs. 6.5m for one, two and three bedrooms respectively. It consists of 60 one-bedroom units, 100 two-bedroom units and 40 three-bedroom units. The project is developed by the Everest Park Development, a joint-venture between Shelter-Afrique and Everest Limited. The two companies own land upon which the project sits. Shelter Afrique further provided debt to the tune of Kshs. 398 million and a standby facility amounting to

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Kshs. 50 million.

“The completion of Everest Park Apartments Phase II is a continuation and reinforcement of our relationship and strong partnership with Everest Limited and a testimony of joint commitment to the development of affordable housing in Kenya,” said Shelter Afrique Managing Director and Chief Executive Officer, Andrew Chimphondah.

In 2011, Shelter Afrique entered into a partnership with Everest Limited and developed Everest Park Phase I. The 240 units were developed at a cost of Kshs. 755 million, marking the beginning of a long-term partnership between the two organizations. “We believe unit cost of between KSh2.9.5 million and KSh4.95 million is within reach of many Kenyans, especially those in the middle class,” Mr. Chimphondah said.

Everest Limited Managing Director James Muriuki said despite the challenges faced during Phase one of the project, the market was reacting positively to the second phase. “We have sold 96 of the 200 units with one and two bedroom units being on high demand. We are upbeat about the uptake of the remaining units,” Mr. Muriuki said.

Speaking when he officially launched the project, Chief Administrative Secretary, Ministry of Transport and Infrastructure Dr. Chris Obure, lauded Shelter Afrique and Everest Limited for complementing the government’s effort in providing affordable housing.

“We appreciate the initiative by Shelter Afrique which is a Pan-African company with the aim of facilitating the financing of affordable housing for member states. Kenya is a major shareholder in Shelter Afrique, we, therefore, expect that our investment will, in turn, benefit our citizens,” Dr. Obure said. The mixed-use complex boasts of a playground for children, parking space facilities and a commercial centre still under construction.

CORPORATE BRIEFS

Coca-Cola Operations director Kenya, Tanzania and Djibouti, Artur Miranda addressing the media during the official launch of a new range of beverage portfolio. the company commit to choice, offering consumers whichever variant suits their taste, lifestyle and diet hence the tagline: Taste the Feeling.

COCA-COLA INTRODUCES NEW RANGE OF BEVERAGE PORTFOLIO

apping into its global strategy, the Coca-Cola System in Kenya has launched an innovative portfolio of beverages to offer customers more choice and convenience. The organization, which is evolving to become a total beverage company, has been reshaping its growth strategy and operating model in line with changing consumer tastes and buying habits. Since 2017, it has broadened its product offerings in various category clusters including water, nectar juice, ready to drink coffee, tea bags and sports drinks. Amongst the products launched today was an addition to the Minute Maid portfolio; Minute Maid Nutridefenses – a nectar juice fortified with vitamin E and Zinc, a suitable addition to the breakfast occasion. Secondly is Coke plus Coffee - a fusion of Coca-Cola and coffee with a formulation of added coffee and fifty percent less sugar.

This drink targets the afternoon slump to help rejuvenate consumers and give them the afternoon kick. Thirdly is Powerade - a sports beverage that replenishes electrolytes, carbohydrates and vitamins during physical and sporting activities. The company also launched a portfolio without sugar namely: Coca-Cola, Fanta, Sprite and Stoney. This move is to provide choice for the consumers to take their sodas with or without sugar. Another significant move by the company is to provide smaller, more convenient packaging as well as various pricing hierarchies within their portfolios so that consumers can select their beverage of choice based on affordability.

With the consumers at the centre of its business, the company has been reshaping its growth strategy and operating model in line with changing consumer tastes and buying habits. In 2016, it adapted the one brand strategy, a move that saw

“With innovation at the core of our new business strategy, we will be able to create more opportunities for use of local ingredients and other inputs. We will also create more jobs for farmers, youth and women. We’re listening carefully and working to ensure that consumers are firmly at the centre of our business so that we can continue to grow responsibly,” said Nelly Wainaina, head of marketing Kenya and Tanzania, Coca-Cola Central, East and West Africa (CEWA) Limited. “We’ve been very clear that for us to drive sustainable, profitable growth of our brands, we also need to encourage and enable our consumers to control added sugar consumption. We are making a very conscious effort to not only expand our portfolio, but to also shape it in a very deliberate way,” she added. The Coca-Cola System in Kenya has a keen interest in advancing and creating variation of its drinks products in the local and regional market. Over the next few weeks, it will be adding more variations into their existing product portfolio. JULY 2019

BIASHARA LEO

The panelists (from left) Nekesa Were, CEO iHub, Myke Rabar, CEO, HomeBoyz Entertainment, Renee Ngamau, radio personality,Olivia Ouko, National Project Coordinator, KYEOP and Sam Gichuru, CEO, Nailab.

MBELENABIZ NATIONAL BUSINESS PLAN COMPETITION LAUNCHED Initiated by the Government of Kenya and supported by the World Bank, competition offers a rare opportunity to young entrepreneurs seeking capital for their businesses

By George Gichuki cores of youth in the country graduate from universities and tertiary colleges every year, while others do not proceed with their education after sitting for standard eight and form four national examinations. Consequently, they look for jobs in order to earn a living. With the number of employment opportunities in the formal sector being limited, most of these youth opt 24 BIASHARA LEO

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for entrepreneurship. Indeed, a big number of micro, small and medium enterprises ( MSMEs) in the country in fields like information and communications technology ( ICT), videography and photography, entertainment, graphics design , retail outlets of electronics and clothes as well as stationery and office equipment among others that are dotted throughout the country are owned and managed by young

entrepreneurs. Given its favourable returns, agribusiness is also attracting the youth.

Unfortunately, most of these businesses die at their start up stage because of encountering challenges like inability to access adequate capital and market for their goods and services. It is against this background that the Government of Kenya under the Kenya Youth Employment and Opportunities Project (KYEOP) has launched the MbeleNaBiz Business Plan Competition. The competition seeks to create jobs and increase income for the youth. This is by investing in young entrepreneurs whose ventures will generate jobs and income for their age mates. It is being implemented by the Micro and Small Enterprises Authority (MSEA) and the Ministry of Public Service, Youth and Gender Affairs

STANDING OUT :ENTREPRENEURSHIP with the support from the World Bank. In the same breath, KPMG has been contracted to manage the countrywide competition where 250 young entrepreneurs emerging as winners will each receive a grant of Kshs. 3.6 million. By the same token, 500 winners will each walk away with Kshs. 900,000. Applicants will be evaluated based on the potential impact, viability and sustainability of the proposed business idea - especially in respect to the potential of their business to create jobs among the youth. Investing Speaking during the launch of the competition, Hon. Peter Munya, Cabinet Secretary Ministry of Industry, Trade and Cooperatives observed: “By investing in young entrepreneurs whose ventures will generate employment opportunities and earning for other youth, the competition will contribute to the development of an inclusive economy that provides opportunities to as many Kenyans as possible.” Dr. Carlos Felipe Jaramillo, the World Bank Country Director for Kenya, Rwanda, Somalia and Uganda in the same vein emphasized that young people are a vital driver of Kenya’s economy. “In all our conversations with the youth, the government and the private sector, one thing has been clear: we have to support young entrepreneurs in their bid to create and grow their businesses,” said Dr. Felipe.

applications from new and existing youth led enterprises from all the 47 counties. Applications will also be received from young Kenyans living in the diaspora, provided that their proposed businesses shall operate in the country.

The youth applying for MbeleNaBiz should be aged between 18 and 35 years, and their level of education should be form four and above. “The government continues to dedicate resources to youth empowerment and seeks to put in place mechanisms that will create opportunities with an aim to boosting Kenya’s development, wealth and employment of the youth,” said Prof. Margaret Kobia, Cabinet Secretary, Ministry of Public Service, Youth and Gender Affairs, adding she is optimistic that many young entrepreneurs will participate in the competition. The application portal opened on 24th June 2019 and it shall continue receiving applicants until 2nd September 2019. The winners will be announced in February 2020.

The panelists A lively conversation took place during the official launch of the MbeleNaBiz Business Plan competition. The panelists comprised successful entrepreneurs : Myke Rabar, the founder and chief executive officer ( CEO) of HomeBoyz Entertainment, Sam Gichuru, the founder and CEO of Nairobi Incubation Lab ( Nailab) and Being a national competition, Kuhustle as well as Nekesa MbeleNaBiz will accept Were, CEO, iHub and Olivia

Ouko, national project manager, KYEOP. Both Rabar and Gichuru shared the view that every day is a struggle for businesses and entrepreneurs therefore cannot afford to rest on their laurels.

In the course of the conversation, it emerged that many young entrepreneurs in attendance did not have mentors. It is in that respect that Gichuru observed that mentorship is a critical tool in the quest to succeed in entrepreneurship. “Entrepreneurs make mistakes in their day to day journey,” he said adding that mentors help entrepreneurs to avoid making costly mistakes. Gichuru also emphasized that entrepreneurs must learn to balance between their talents and work ethics. Entrepreneurs were also cautioned against expanding their businesses unless there was a need to do so. “Building of a successful ecosystem should be the major focus of entrepreneurs before scaling up,” said Rabar. He added that expansion if not well managed may lead the entrepreneur to spend a lot of time on the operations of his or her business, at the expense of more critical issues like driving strategy. “Serve a small clientele successfully first before spreading your wings,” Nekesa advised the attentive young entrepreneurs attending the launch of MbeleNaBiz. Indeed, the competition offers a golden opportunity for young entrepreneurs to access capital for running their businesses which is often a nightmare to most of them. JULY 2019

BIASHARA LEO

THE 2019 NATIONAL MICROFINANCE CONFERENCE

THE HOSTS: Caroline Karanja, CEO, AMFI-K and Shadrack Mithika, the finance manager.

he inaugural 2019 National Microfinance Conference recently took place at the University of Nairobi Chandaria Auditorium. The three day event was organized by the Association of Microfinance Institutions – Kenya (AMFI-K). It drew participants from the local microfinance sector, international microfinance practitioners, national and county governments’ representatives as well as various players from the private sector.

In a speech delivered on his behalf by Nelson Gaichuhie, the Chief Administrative Officer, National Treasury and Planning, Henry Rotich, the Cabinet Secretary of the said ministry and who was the chief guest said that the government is in the process of coming up with regulations for the non-deposit taking microfinance institutions so that they can conduct themselves properly in the market. Currently, it is only microfinance banks that are regulated

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by the Central Bank of Kenya (CBK). In addition, he revealed that in order to eliminate an overlap in the roles of Uwezo Fund, Youth Enterprise Development Fund and the Women Enterprise Development Fund, the government is consolidating them to Biashara Kenya Fund.

On his part, CBK Governor, Dr. Patrick Njoroge appealed to microfinance banks and institutions to embrace effective business models and strong governance structures, besides listening to their customers and serving them with utmost attention, in order to be profitable and self sustaining. Topical issues on microfinance were discussed in the conference. Its theme was: ‘Promoting Sustainable Development through Microfinance.’ Various members of AMFI-K also showcased their innovative products and services.

STANDING OUT: MICROFINANCE

Caroline Mulwa, Chair, AMFI-K addressing the participants.

Delegates participating in the conference.

The exhibitors during the conference.

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BUSINESS KIT: OPINION

By George Gichuki

elebrated writer, Ngugi Wa Thiong’o in his novel, A Grain of Wheat gives an account of some people paying a visit to their Member of Parliament in newly independent Kenya. The haughty fellow makes them queue for hours on end in his office as if he were the only thing that mattered in their lives. Disappointed by this mistreatment from somebody they have voted into power, one visitor quips: “This is like trying to see God.” Well, this is a common trend among many people who perceive themselves as wielders of power, money and influence. It does not help if they were known to you before ‘arriving’ in their positions. I remember once calling a relative who thought his office was too big for me. In

By George Marenya

e was simply Bob and it helped that his name did not lend itself well to the affixing “Mr” right before it.

So whether you were calling or shooting an email, you simply shouted “Bob”. Bob did not have two sides to him. They talk of persona and personality. Bob loved people. He made sure you understood he loved you. Indeed you did not have to earn his love. You only had to be a human being. So there were many happy memorable afternoons when his unmistakable booming voice would go ‘Hi George”. There’s nothing better for the adrenaline like instant recognition. Inevitably, his handlers would take the cue. This way, one meeting easily fed into the next. His office would believe (thankfully) that you are his guy. The customer always came up early and frequently in any conversation with Bob. In fact, if truth be told, few companies respond as fast and as effectively to queries on service like Safaricom. I remember telling him about a connectivity

BOB COLLYMORE: THE GUY NEXT DOOR the background, I shamelessly overheard him exclaiming to his secretary: “Handle that call!” Humiliated, I hanged up never to call him again. For the ‘big man’ possibly thought I was seeking some favours ( nay a handout) from him and therefore his time was too valuable for me. Ironically, we had grown up together in the same village tending to cows and goats, and occasionally sharing food from the same plate. But there is the rare breed of achievers who even after lady luck smiles on them and they attain leadership positions, this never gets into their heads. Yes, that CEO, who will open his or her door to a writer eager to develop a big and compelling story. Bob was one of them. Catching up with him for a story was never tedious and unnecessarily bureaucratic. He had an open door policy.

When you finally caught up with him during the interview, his warmth, friendliness and down to earth nature made you feel as if this is a guy you had grown up with. He was not the typical Kenyan ‘Sonko’. Yes, those clueless fellows who behave as if they own the air that we breathe. Nay. Bob was amiable, charming and unsophisticated. Little wonder that he steadily guided the Safaricom ship to its destiny. For he understood the juggernaut’s DNA. Love attracts, unfriendliness repels. I learnt that while interviewing him … his warm smile easily made us connect. Possibly, that is the secret he employed in warming up Safaricom to millions of loyal customers. It is a lesson that should be of benefit to all people, their stations in life notwithstanding. Rest in Peace Bob.

TRIBUTE TO BOB COLLYMORE-1958-2019

(voice) issue near my rural village sometime last year. That very weekend, his engineer was on the ground to ensure that something would be done.

It may be something to do with the fact of his upbringing. His grandmother looms large in his early life while the mother picks up from somewhere when he was in high school. No wonder under him, women had pride of place at Safaricom. In fact on diversity, he would say these people were not just invited to the party; they were welcome to the dance floor. Having taken over from a fairly enigmatic personality in Michael Joseph, we wondered whether he would ever make himself synonymous with Safaricom. Well he did. An easy going, affable and suave gentleman, it helped that on the whole, you felt he was genuine. That he meant what he said. He believed on the Kenyan spirit. Our enterprising culture. The mural in his office of the Kayole matatu, yes Forward Travellers (FT) and the bicycle men told it all.

Maybe had he lived longer and got time to give full vent to his ever present artistic side, he would have sung lyrics to the Kenyan hustler. The Kenyan artist, photographer and painter were the better thanks to him. Just look at any Safaricom calendar.

He was quick to give us his wealth declaration. A testament to his belief in a less corrupt Kenya. When Bob’s history is finally written, it will be a bounty to would be and current CEOs. It will be very rich on how to manage a company and a people. How to inspire, guide, give hope and take a company to the next level. It is upon Safaricom to see what would be the best way to immortalize him. The rest of us can but only pick and choose what we can fit into.

There is a saying among the Luo that once the rain has stopped, next time we are tempted to compare it with mere drizzles. May that never happen in the case of Bob. For his energy, charm and easy smile, it was bounty that I knew him. Rest in Peace Bob Collymore. JULY 2019

BIASHARA LEO

CYBERSECURITY NO LONGER AN AFTER THOUGHT BUT A NECESSITY FOR BUSINESSES

needs and different budget levels and the solution was designed to cater for each customer’s needs so that they can get the best value and strategically select their solutions.

Through the managed security solutions, Safaricom targets small and medium enterprises (SMEs), large enterprises, government, multinationals and individuals.

The telco will also explore opportunities in security awareness training, financial services, e-commerce companies and the government amongst many customers who are looking to secure their key resources and yet want to comply to set regulations.

“Based on our own intelligence through our security operation centre, we see organizations being targeted and hence we have realized that there is an opportunity in bringing this service to our customers as well as the organizations that would need it,” said Mulila.

From (L), Safaricom chief financial services officer Sitoyo Lopokoiyit, Safaricom chief corporate security officer Nicholas Mulila, head of digital banking Stanbic bank Victor odada, chairman digital lenders Robert Masinde and head of IT Stanchart, Jaine Mwai during the launch of anti-fraud solution for the financial sector.

ybersecurity threats have increased in Kenya over the years and it is no longer just a threat. Some companies have suffered huge losses from cyber-attacks both locally and even globally. According to the Communications Authority of Kenya (CA) report for the first quarter of 2018/2019 financial year (JulySept 2018), the National Cyber Security Centre (NCC) detected over 3.8 million cyber threats, which was an increase from the last quarter where 3.4 million threats were detected. The increase was attributed to the increase in internet penetration and internet enabled devices.

The cost of cybersecurity is high and over 90% of the companies in Kenya operate below security poverty line thus exposing themselves to cyber security risks. In its 2017 Internet Security Report, Symantec, a software security company reported that malicious emails were the weapon of choice for a wide range of cyber-attacks in 2016. They were used by everyone from statesponsored cyber espionage groups to massmailing ransomware gangs.

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“Cybersecurity is a key concern for Safaricom especially because we are the largest telco in the region, supporting the biggest innovative financial services platform – M-Pesa, this has helped us over years to build a robust cyber security programme to help us with governance of our own processes, use of systems and more so, awareness of our own people,” said Nicholas Mulila, chief security officer, Safaricom.

Last year, Safaricom launched security solutions to help customers protect their information systems. Through the service, customers can access managed security solutions, security assurance and advisory services as well as managed security operations centre solutions. The services are expected to help companies, enterprises and individuals secure their emails, websites, manage vulnerabilities, test and audit information technology (I.T) systems and access real time monitoring among other services. The launch of the services was based on the realization that customers have unique

A new global cyber security report from Vodafone highlights that the more cyber ready a business becomes, the better its overall business outcomes. According to the Cyber Ready Barometer, 48% of cyber ready businesses are reporting more than 5% increases in annual revenue as well as high stakeholder trust levels. Despite this, the research also shows that only 24% of businesses globally could reasonably call themselves cyber ready. In its 2017 Internet Security Report, Symantec reported that malicious emails were the weapon of choice for a wide range of cyber-attacks in 2016, used by everyone from statesponsored cyber espionage groups to mass-mailing ransomware gangs.

Safaricom has been running the biggest cyber security operation centre in the region for over five years now. The company is at a level of maturity in managing cyber security operations coupled with over one hundred cyber security experts in various domains. It is also in the process of ensuring that customers who have their resources online and are looking to secure their investments on the go are able to do so. This is being done through a process of clustering solutions targeting specific verticals in the industry to offer customers solutions to address their needs.

A lot of emphasis has also been put to ensure that the people who are working with the customers build trust and confidence and also continuously train and build awareness among them.

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JULY 2019

BIASHARA LEO

By Carolyne Gathuru

CUSTOMER LOYALTY PROGRAMMES – DO THEY WORK?

here’s a big debate regarding whether customer loyalty programmes serve as a marketing venture with the key objective to rope in new customers by providing assured freebies for continued patronage, or if they serve best as customer experience initiatives seeking to keep loyal customers rewarded and to provide a ‘thank you’ for extended custom. That marketing and customer experience departments – that in general share numerous core activities - should be harmonized is a subject for a different day. Nevertheless, in context of this discussion, customer loyalty programmes irrespective of the originating brand’s agenda, serve to pique the interest of both existing and potential customers. Investopedia, the world's leading source of financial content, defines a loyalty

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programme as a reward offered by companies to customers who frequently make purchases. It goes further to say that loyalty programmes may give customers advanced access to new products, special sales coupons or free merchandise. Indeed, we have seen the burgeoning of innovative loyalty schemes in the country including: fuel stations offering reduction in fuel pricing per litre for loyal users with fuel loyalty cards, telecommunication companies offering accumulated points that subscribers may use to redeem airtime for texts, calls or data, loyalty cards at retail supermarket outlets that shoppers may redeem to make further purchases, clothing stores offering discounts for regular customers to enhance further visits, banks adopting loyalty programmes that reward customers through a point allocation system based on banking transactions done, flying miles accumulated from air frequent travel

on specific airlines, and finally, shoe stores offering points for a minimum amount spent in the shoe store redeemable through purchase of more shoes or other items within the facility.

Peculiar It is said that buying behaviour is as peculiar to culture as it is to race, and without doubt in this country, the love for free things is unparalleled. The lengths to which buyers go to ensure that free deals do not pass them, and they can cash in on offers while they last is not only fascinating, but it would make for an interesting research topic.

That this partiality for freebies cuts across the entire economic spectrum in equal measure, from the well to do in the green leafy suburbs of the major cities to both the rural and urban poor is of keen interest. It is for this reason that loyalty programmes

BUSINESS KIT: CUSTOMER EXPERIENCE have been well received from inception to date, and continue to attract interest with every initiative launched. Whether the programmes are first successful and secondly sustainable in that they meet their objectives and increase customer patronage, loyalty and retention, needs further discussion. All in all, Organizations need not jump aboard the customer loyalty programme bandwagon without first putting into consideration what it takes to ensure success.

Reward or customer loyalty programmes are only as good as the intention for which they are created. Before any corporate latches onto the wave because it seems like a good thing to do, or because of peer pressure from industry or customers, it is important go back to the corporate strategy and assess the viability. The application of any customer loyalty programme should be based on a specific pillar in the bigger organization blue print that covers customer acquisition, satisfaction and retention. Wherever this plan sits, that is where the loyalty programme needs to be embedded. It is of notable importance that the department charged with the responsibility of handling and managing the programme is well grounded and in sync with the strategic direction for this initiative, scenario analysis including the possible risks and mitigation factors, the minimum threshold for which the programme will be deemed successful or otherwise, and the cost benefit analysis to the brand. Most importantly though, is to have the customer at the centre of this decision making process, otherwise it will neither be sustainable nor rewarding for him or the company. Reciprocity Customer loyalty programmes when well designed serve to alter customer behaviour. The principle of reciprocity kicks in and as social psychologists have it, human beings live by this virtue. They as a rule feel warmer to, and are obligated to repay favours and gifts. Loyalty programmes by their very nature play in this space. Customers’ hard wiring is such that when something nice is done for them, then they naturally feel like doing something nice in return. That ‘something nice’ is continued patronage. The reciprocity concept allows for relationship building and nurturing for as long as the exchanges keep happening with a win-win outcome for both parties. What needs to be of lucid clarity is that the relationship continues only if the receiving party - in this case the customer – at no point feels taken advantage of, or in any way slighted by the programme model.

Reward or customer loyalty programmes are only as good as the intention for which they are created This therefore calls upon the designers of the loyalty programmes to ensure that the communication built around the programmes is crafted in such a way that it is offered to the customers as a gift for their patronage. Reciprocity works seamlessly where the good gesture is construed not to be manipulative, and the power of it is seen when the recipient deems the act to be one of kindness.

The most successful loyalty programmes witnessed in the country are those that allow customers to access products and services not proprietary to the loyalty programme owner. Brands have partnered on various occasions to run joint ventures that allow loyalty programme members to access their products and services at a discount or to redeem their loyalty offers at different outlets. This model significantly increases customer delight with strong positive feedback and emotional alignment towards the mother brand. Any brand that is seen to be taking care of the holistic needs of its customers cannot go wrong in terms of customer engagement. One very successful programme with massive customer mobilization has been a leading supermarket with an offer to redeem loyalty points for school fees cheques at any school of choice. The massive brand appeal in response to this ‘giveaway’ continues to date despite the programme being halted for about a year or so. Customers are influenced by emotion and brands that have an emotive appeal are more likely to see sustained customer involvement. Customer loyalty is a factor of positive emotion invoked. Any customer loyalty programme to be launched should therefore be built upon this premise. The customer must be at the core of the programme functionality. What is in it? Having covered what is -in-it for the customer, the same line of thought must be explored for the provider ahead of commencement. And as with all good business strategies, the planning process must begin with the end in mind. Sustainability requires that the programme does not eat too much into the product or service margins, and allow for a minimum threshold buffer. The bottom line

value linked to customer retention must be computed with inputs into: the value of the proposed pipeline of customers to be netted via novelty attraction, the value brought by retention and stemming of attrition of the existing customers as well as the value of the word of mouth referrals from existing customer communication to their networks on the advantageous offer on the cards. Equally important is the net effect of the customer loyalty programme on the marketing budget owing to the reduced likelihood of customers running off to the competition, thus reducing or eliminating the need for competitor based marketing campaigns. Loyalty programmes are likely to change consumer behaviour by providing the incentive for purchase of a wide range of products from one provider in place of a range of retailers, with a view to taking advantage of the loyalty offer. Where products or services may not be up to par with the competition, the customer will be inclined to provide feedback for improvement to enable their continued procurement to earn their reward. The icing on the cake for loyalty programme providers is the almost painless acquisition of customer data that enables brands know and understand their customers in order to then serve them better. Caution must be observed not to use customer information for unsolicited communication campaigns or have these accessed by third parties not enlisted in the partnership agreement with the customer. Any indication of breach would not only form the basis of legal redress, but also have the specific programme acquire an unpleasant reputation. Study of customer behaviour from data collected to decipher common trends, adjust responses appropriately and anticipate needs to adequately meet and exceed them, is valuable for business continuity. The golden rule of customer experience excellence Know Your Customer - is made much easier by the availability of such important information.

The most important factor to consider when starting up, rejuvenating, or planning for sustainability of a customer loyalty or reward programme, is to have customer welfare at the centre of the planning process as a critical element for success, and to ensure the programme is built around partnership for success rather than for company gain. Carolyne Gathuru is the founder and director of strategy at Lifeskills Consulting. She has over 17 years experience in customer service strategy development and training. Email: cgathuru@life-skills.co.ke JULY 2019

BIASHARA LEO

By Peter Muya

TECHNOLOGY THE THING VERSUS TECHNOLOGY THE TECHNIQUE

n September 2016, I attended the 11th iCMG architecture world summit in Bangalore. This sponsor free, vendor neutral event brought together an array of professionals from more than twenty countries from every continent to share about their experiences in applying the discipline of enterprise architecture within their respective enterprises or consultancies. Two case studies stood out during the event. In the breakout sessions, I listened to a presentation by Localiza Car Rental from Brazil that demonstrated how they used the concept of microservices to improve business agility in service delivery. I also listened to a presentation by AKBANK of Turkey on how digital and API banking

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supported by SOA vision using a concept of multi-channel architecture.

Top drawer There were tonnes of other breakout presentations which I wasn’t able to attend due to time constraints. However, each of the presenters shared a common theme thought. A lot of thought had gone into the design and implementation of whatever solution (suggested or realized) for the respective business problem. The diversity of approaches to solving the respective problems was balanced by the convergence of why the problems were being solved. Each of the presentations linked back the method and outputs to how different

the enterprise was or is expected to be as a result of application of the solution(s) developed. The thinking in each case was top drawer.

In his opening remarks, Sunil Dutt Jha CEO of iCMG, stressed the importance of having the right people to whom the CEO can explain his or her problems to. In his presentation, I recall the words, “technology is not changing, the implementation of technology is”. Those words stuck in my head. The words at face value then appeared to be rather confusing. However, after ruminating over them for months, I have attempted to piece a meaning out of them. In doing so, I read a piece about the

BUSINESS KIT: ICT

differences between SOA and Microservices from a couple of experts in the trade. This would somewhat mirror the case studies of Localiza and AKBANK in the summit I attended back in September. One such expert is Matt McLarty, a software architect who leads API Academy at CA Technologies. He is also a co-author of the book “Microservice Architecture” from O’Reilly Media. In his article, he describes what lessons can be learnt from the rise and fall of SOA in order to best use microservices. One of his bullet points talks about focusing on what is lasting rather than what is transient. He says, that patterns and principles last but technology doesn’t. In his assessment, when technology vendors of middleware convinced the industry that ESB was not a pattern but a product and the subsequent adoption, complexity increased and the original intent of SOA was compromised.

Going back to Sunil’s words, implemented technology is the result of thought and deed. SOA and Microservices begun as thoughts that later on have become realities. Each of the thought attempted to address the same problem using different perspectives albeit with some similar sub-parts. Wikipedia defines technology as “the collection of techniques, skills, methods and processes used in the production of goods or services or in the accomplishment of objectives, such as scientific investigation.” I suppose many have used the term as a noun to refer to the “thing”. This definition points to more of a verb. The latter may have been what Sunil was attempting to communicate in his presentation. If the “thing” is the technology, then what would we call the thinking and the doing that produces the “thing”? McLarty may have given us a clue by his reference to patterns and principles. In order to produce the “thing”, some pattern must

exist or must have been determined. Additionally, how pattern is realized must be guided by something else, that something is principles. It requires some skill to recognize patterns and discipline to follow through principles in applying the techniques, methods and processes required to produce the thing. These terms as defined, mean that the thinking behind the “thing” has an unchanging structure but the execution of thought may use different ways to address the problem, as illustrated by the case studies above. Solving similar problems Consider the manufacture of the first brand of a mobile phone compared to the production of a smart phone. These are different products with different features but having a similar problem to solve. The thinking behind the first brand of a mobile phone must have been inspired by the patterns and principles available at that time. The smart phone on the other hand is informed by patterns and principles available today. The difference is time, seasons and preferences. Technology as a verb didn’t change but the implementation of the means to mobile interactions has changed over time. Our modern day conversations may refer to change of the thing as well as imply changing of the framework within which production of such things is done. If this be the case, then we may be focusing on what is transient and forgetting to look at what is lasting. Given the high rate of technology (the “thing”) obsolescence it would be foolhardy to build a future on the “thing”. Surprisingly, it is not uncommon to see enterprises build their strategy on a technology (“the thing”) rather than technology (“the thinking and doing”). In conclusion, I will use McLarty words

: “Every Docker will have its day, but microservice adopters should embrace the patterns and principles, and prepare for technology obsolescence”. This is true not just for microservices but generally for any technology (“the thing”) movement. We need the “thing” in order to address the problem today, but once the “thing” is no longer able to meet our growing demands and another “thing” takes its place, we must have the ability to see through the pattern and principles implemented by the “thing” and use those as a basis for considering the next “thing”.

That was my deduction of the two presentations I picked for consideration in this post. Nokia 3310 would be the point in time implementation of means to mobile interactions in the late 90s and early 2000s while the smart phone would be the point in time implementation (not means) to mobile interactions in the period after that. The patterns of a keypad, a lens, a speaker and a battery slot among others still define both sets. However, added features (for instance data and storage) increases the principle’s instant messaging. Therefore in my understanding of Sunil’s words, technology is the verb (thoughts, methods, skills and techniques) while its implementation is the noun (the thing).

About the author Peter Muya, is an award enterprise transformation practitioner, possessing 15 years experience conducting mid and large-scale transformation projects in the telecommunications, financial services and public sector industries. He is the co-founder and a managing partner of PTI Consulting, a pan-African consulting practice providing ICT related business advisory services Web: www.pticonsulting.co.ke Email: peter.muya@pearltouchint.com

JULY 2019

BIASHARA LEO

By Dr. Kellen Kiambati PhD. HRM(K) CBPO(A)

HUMAN RESOURCE ACCOUNTABILITY

everal developments, positive and negative, in recent years have influenced the need for additional human resource (HR) accountability. All point towards a need to know more about the connection between investing in HR and the payoff of the investment. The triple bottom line Much attention has focused recently on the concept of the triple bottom line. Not only must an organization be successful financially as demonstrated by traditional bottom-line measures, but it must also be successful with its employees and the external environment. The employee “bottom line” is not readily defined, but it typically translates into the organization having favourable work conditions, treating employees fairly and equitably, and compensating them adequately, while fully recognizing the potential and capabilities of employees in a diverse environment.

This measure has stimulated many organizations to search for ways in which

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to monitor, measure, and even value the employee’s contribution.

Consequently, there is sometimes pressure to address this bottom line, yet there is no clear direction of what it means. The external environment refers to the impact on and interaction with the community, the country, and the environment. Being a good corporate citizen and protecting the environment are two key issues.

Human capital management focus The concept of human capital is perhaps overused these days because so much has been written about how to monitor, measure, and value the human aspects of organizations.

Nevertheless, a lot of work still needs to be done with this important topic. In its early movement, much attention regarding human capital focused in the area of HR accounting—an attempt to account for the value of employees through traditional financial reporting methods. The difficulty lies in the methods for assigning a monetary

value on the contribution or capability of human “assets.”Although some progress was made, to date, very few results and examples have been offered. The human capital management trend also grew out of early benchmarking work of the 1980s as HR firms began to benchmark data and compare key indicators. A variety of measures on compliance, compensation, benefits, safety, retention, and absenteeism were developed.

Today’s human capital measurement mix contains those measures plus others, such as leadership, innovation, employee engagement, and learning. These new measures are critical to organizational growth and success. The challenge is to identify the appropriate blend of measures that reflect the status of human capital and enables decisions to be made about what to do with them. Top executive demands Senior executives are asking the HR

BUSINESS KIT: HR function to show value. In some cases, HR is asked to show value or have its budget cut. Sometimes, value must be shown before budgets are approved. In a few situations, this concern has led to outsourcing of major parts or even all of the HR function. For years, HR escaped this level of scrutiny as employers invested in human capital on faith. They inherently believed that the more they invested in people, the more people would respond to the nature of their work. Today, executives are asking for data.

HR Disasters Few organizations have the courage to admit to an HR disaster. The consequences of a flawed, ill-advised, or ineffective HR practice, programme, or strategy can make excellent reading, particularly in the popular press. Unfortunately, a growing number of these stories are making their way into the HR professional press. An intriguing example is an exposé of the cost of an ill-advised HR strategy developed by Rent-A-Centre. A decision to eliminate HR contributed to a $47 million payment required to settle litigation. The story is a classic example in which ill-advised practices and strategies went astray, not only costing a tremendous amount in direct payment but ultimately destroying the morale of the organization (Grossman,2002). Although these types of disasters are reported more frequently in the press now, hundreds of others go unreported but probably represent tremendous mismanagement of human resources. From an accountability perspective, HR staff has opportunities to add value. If, however, HR programmes are mismanaged, the consequences can be negative. Appropriate data are needed to show how well programmes are working and demonstrate their contribution to the organization. A comprehensive measurement system can help prevent some HR disasters, thus minimizing losses and changing the image of the HR function from one of a niceto-have auxiliary department to one of a critical business function that contributes in a positive way to the organization’s bottom line. HR Technology Perhaps no development has influenced the HR function as much as the advent of technology. Most HR transactions are now automated, including compensation administration, benefits administration, payroll, employee record keeping,

recruiting, training, and orientation. Technology has eliminated the need for some HR staff. In certain cases, HR has been shifted to other areas (for example, finance or information technology), leaving some HR staff disconnected from where the work is often done. On a positive note, technology has enabled collection of tremendous amounts of data that were previously unavailable. Employee and performance data can be organized, integrated, and reported in meaningful formats, thereby providing HR staff with the tools to measure the impact of the HR function and major HR initiatives. HR outsourcing Outsourcing of HR services is an important trend among organizations during the last decade. Outsourcing means good and bad news. The good news is that many routine HR functions—not central to HR’s primary mission or values—can be outsourced. This trend was initiated primarily in the payroll and employee-processing areas but has now expanded to include almost every part of the HR function.

In some cases, the entire HR staff and processes have been outsourced to external providers who offer the same services. The bad news is that outsourcing is sometimes pursued for the wrong reasons. HR personnel fail to provide appropriate data and results to demonstrate the function’s contribution to the organization. Sometimes, outsourcing brings a shortterm fix of immediate cost savings because fewer people earning lower salaries are doing the work. On a long-term basis, however, the result can be detrimental because satisfaction with the outsourced services can deteriorate. The accountability trend of all functions It is somehow comforting to know that HR is not the only function being asked to show accountability. Many other functions are undergoing the same level of scrutiny, paradigm shifts, and changes. To be sure, they areall more accountable for expenditure. Consider, for example, the information technology (IT) function. A few years ago, technology and IT groups had a blank cheque. They could implement almost any type of new technology, and it would be accepted because of the prevailing notion that technology was a competitive weapon that no firm could afford to be without. Unfortunately, many technology

implementation processes were dismal failures that added tremendous costs but did not improve—or sometimes made worse— the very situations they were supposed to improve. In recent years, IT has been asked to show value even before investments are made and then carefully track the value to make sure that the projections are realized. This scrutiny has caused those responsible for implementing technology to measure not only the return on investment (ROI) but also a variety of other qualitative and quantitative measures thereby producing a balanced profile of success. A paradigm shift for HR accountability The factors described in the foregoing sections have had a tremendous effect on HR functions and their attempt to improve the effectiveness, impact, and the overall accountability of the HR function. Because of these influences, three important shifts have taken place in HR functions.

Shift to a results-based approach The approach to organizing, managing, and implementing the HR function has shifted from a traditional activity-based approach to a more results-based approach. The following are a few indicators of result based approach: a) New programmes are initiated only after a legitimate need is established. b) The emphasis is on having fewer programmes that offer great opportunity to make an impact. c) Existing programmes are regularly reviewed, revised, or eliminated when necessary d) HR impact is measured by determining the bottom-line impact of programmes on the organization. e) Management is extensively involved and collaborates in the HR process. f) HR is viewed as an investment in employees. g) The HR staff is very knowledgeable about operations. h) The HR staff is well versed in basic finance and business concepts.

Dr. Kellen Kiambati holds a PhD in business administration with a focus on strategic management from JKUAT and an MBA from KEMU. She is a certified business associate (CBPA) and a member of the Institute of Human Resource Management of Kenya. She is also the author of business Research Methods and can be reached on kellenkiambati@gmail.com JULY 2019

BIASHARA LEO

By Dr. Kellen Kiambati PhD. HRM(K) CBPO(A)

STRATEGIC CHANGE INTERVENTIONS

any organizations are unlikely to undertake drastic transformational change. Power, emotion and expertise are vested in the existing organizational arrangements, and when faced with problems, organizations are more likely to fine-tune those structures than to alter them drastically. Thus, in most cases, organizations must experience or anticipate a severe threat to survival before they are motivated to undertake transformational change. Such threats arise when environmental and internal changes render existing organizational strategies and designs obsolete. The changes threaten the very existence of the organization as it presently is constituted. Disruption Transformational change occurs in response to at least three kinds of disruption: •Industry discontinuities—sharp changes in legal, political, economic, and

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technological conditions that shift the basis for competition within an industry;

• Product life cycle shifts—changes in product life cycle that require different business strategies; • Internal company dynamics—changes in size, corporate portfolio strategy, or executive turnover.

These disruptions severely jolt organizations and push them to question their business strategy and, in turn, their mission, values, structure, systems and procedures. Transformational change is concerned with choices organizations make to improve their competitive performance. To establish a competitive advantage, organizations must achieve a favoured position vis-à-vis their competitors or perform internally in ways that are unique, valuable, and difficult to imitate. Although typically associated

with for-profit firms, these competitive criteria can also apply to non profit and governmental organizations. Activities that are unique, valuable, and difficult to imitate enhance the organization’s performance by establishing a competitive advantage over its rivals.

Unique All organizations possess a unique bundle of resources and processes which, individually or in combination, represent the source of competitive advantage.An important task in transformational change is to understand these unique organizational features. For example, resources can be financial, such as access to low-cost capital; reputational, such as brand image or a history of product quality; technological,such as patents, know-how, or a strong research and development department; andhuman, such as excellent labour–management relationships or employees with scarce and valuable skills. An organization’s processes regular patterns of organizational activity

BUSINESS KIT: MANAGEMENT involving a sequence of tasks performed by individuals. It also uses resources to produce goods and services. For example, a software development process combines computer resources, programming languages, typing skills, knowledge of computer languages, and customer requirements to produce a new software application. Other organizational processes include new product development, strategic planning, appraising member performance, making sales calls and fulfilling customer orders. When resources and processes are formed into capabilities that allow the organization to perform complex activities better than others, a distinctive competence is identified. Competitive advantage Organizations achieve competitive advantage when their unique resources and processes are arranged in such a way that products or services either warrant a higher-than-average price or are exceptionally low in cost. Both advantages are valuable according to a performance/ price criterion. Products and services with highly desirable features or capabilities, although expensive, are valuable because of their ability to satisfy customer demands for high quality or some other performance dimension. Finally, competitive advantage is sustainable when unique and valuable resources and processes are difficult to mimic or duplicate by other organizations. Organizations have devised a number of methods for making imitation difficult .For example, they can protect their competitive advantage by making it difficult for other firms to identify their distinctive competence. Disclosing

unimportant information at trade shows or forgoing superior profits can make it difficult for competitors to identify an organization’s strengths. Organizations also can aggressively pursue a range of opportunities, thus raising the cost for competitors who try to replicate their success.Finally, organizations can seek to retain key human resources through attractive compensation and reward practices thereby making it more difficult and costly for competitors to attract such talent.The success of a competitive strategy depends on the organization’s responses that result in unique, valuable, and difficultto-imitate advantages. Transformational change Transformational change assists organizations in developing these advantages and managing strategic change. It involves reshaping the organization’s design elements and culture. These changes can be characterized as systemic and revolutionary because the entire nature of the organization is altered fundamentally. Typically driven by senior executives, change may occur rapidly so that it does not get mired in politics, individual resistance and other forms of organizational inertia. This is particularly pertinent to changing the different features of the organization, such as structure, information systems, human resources practices and work design. These features tend to reinforce one another, thus making it difficult to change them in a piecemeal manner. They need to be changed together and in a coordinated fashion so that they can mutually support each other as well as the new cultural values and assumptions. Ultimately, these

changes should motivate and direct people’s behaviour in a new strategic direction.They are considered transformational when a majority of individuals in an organization change their behaviour.

Three key roles for executive leadership of such change are: • Envisioning: Executives must articulate a clear and credible vision of the new strategic orientation. They also must set new and difficult standards for performance and generate pride in past accomplishments and enthusiasm for the new strategy.

• Energizing: Executives must demonstrate personal excitement for the changes and model the behaviours that are expected of others. Behavioural integrity, credibility and “walking the talk” are important ingredients. They must communicate examples of early success to mobilize energy for change. • Enabling. Executives must provide the resources necessary for undertaking significant change and use rewards to reinforce new behaviour. Leaders also must build an effective top-management team to manage the new organization and develop management practices to support the change process.

JULY 2019

BIASHARA LEO

By John Kageche

FOR A FASTER CLOSE, MAKE IT EASY FOR BUYER TO UNDERSTAND AND DECIDE

e listened keenly to my responses then said: “Let me show you something.” He opened his laptop made a few keystrokes and turned it towards me. “Is this the kind of website you’d like, or is the other one better?” I liked the first. He didn’t bother to explain to me how it was made. He just showed me what I wanted. He made it easy for me to understand and decide. This is what I’d like us to talk about today.

Observing these four aspects helps in doing so. Explore through questions. Limit options

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while offering appropriate alternatives. Eliminate Jargon. Educate where necessary.

Explore through questions When selling a computer for instance, getting excited about Core 2 duo, 5 Series, 2GB RAM and all the gizmos is not of much use to the average buyer. Exploring through simple questions is more productive. “Do you seek a laptop or a personal computer?” Laptop. “Which one do you currently have?” It is black and has Q written on the top. (Meaning he is lay to the bone) “You mean like this one here?” (Make it easy for him to

choose) His eyes light up, Yes. “It’s a good laptop. Why do you want to change?” It’s getting slow and I was told it has been overtaken by time. Plus I keep getting this annoying pop up to upgrade to Windows 10. (He’s a technology laggard, hates change but wants a faster machine) “Okay; which programmes do you mostly use? As in Excel, Word, Corel Draw, iTunes?” No. Just Word, PowerPoint and sometimes Excel. During my free time, I dabble a little with Publisher though. “Okay. Is yours a field job, like sales or it is a desk job? (To know whether to get him a heavy or light duty one) Desk job. “Are you particular about the colour?” Not

BUSINESS KIT: SALES really. Show me what you’ve got... Chances are that this exchange will happen as he is moving about your showroom or his eyes are browsing the display window. Meaning it’s a conversation, not an interrogation. “I think you will like this one. Your laptop is a 2 Series and we are now in 5, which is why it is slow –educating. This one is a 5 Series and comes with Windows 10 fully installed - suitable alternatives. “You want to move to Windows 10 because lower versions will struggle with inevitable upgrades and you will have a much smoother end exciting experience (not interphase). Here try it out” (He does). It comes in two colours-this brown and green. The price is the same. And to help you in your presentations, let me show you what a slide presenter can do…. “ Notice that a much more superior machine was sold, but the conversation centred on the buyer’s needs. Let him be pleasantly surprised when he discovers the other things his new laptop can do when he gets oohs and ahs from colleagues, friends and family. After all, he’ll trust their admiration more, than he would have done yours.

Limit options while offering appropriate alternatives Too many choices can confuse customers so limit the options. “When you go to the market to buy two apples, why do you get disappointed when you find only two remaining? So an advert used to ask, and then would give us the answer. “It’s because you want variety” Indeed, variety is the spice of life. But just like spices can also get too hot to consume, likewise too much variety can be annoying and can get ignored-like we do the returns to a Google search-research says few people go past the first page of the thousands that appear. When it’s too much, suddenly variety isn’t delightful anymore; it is irritating. What to do? Limit the options. In a restaurant, few patrons are connoisseurs of what they seek and will be delighted (more relieved) by the waiter who recommends a meal for them after a brief interview which goes something like, “Would you like white or red meat?” White. “Then you will love our fish; or, would you prefer the chicken, Sir?” Notice the options usually given are in twos. Warm or cold? Red or white? With toppings or without? Such choices make it easier for the buyer to respond to, and hasten the movement along the sales cycle. Making a choice from an option of two or three things is much more palatable than twenty two or twenty three things. This giving of two options also lends itself to closing. “Would you like to sign with

the blue pen or the black?” or “Would you like to pay in cash or via card?” Notice that the questions asked in the examples are leading questions. Irrespective of how the prospect answers them, they move towards a close. The questions are also not entirely closed neither, nor are they too open. If the prospect can’t meet you tomorrow at 2.30pm, or the day after at 6pm, then he will not respond to your query for an appointment with a no. On the contrary, he will give other dates as an option; which still gives us what we wanted-an appointment. But even limiting the options also needs to be limited. Otherwise when elongated, they can be irritating as in this illustration. “Excuse me Sir, will the water be bottled or tap?” Bottled. “Carbonated or mineral?” Mineral. “One litre or half a litre?” Half a litre. “Warm or Cold?” Warm. “Still or sparking?” Still. “Flavoured or unflavoured?” Flavoured. “Mint, passion or garlic?” Mint. “Taking it away or taking it here?” Arrgh! Taking it here…

Eliminate Jargon and educate where necessary. I’ve written about jargon here before. I can write about it again and again until my African face turns blue. I consider eliminating jargon that important in selling. Using jargon erects walls instead of laying bridges. It runs the risk of making the client feel inferior or embarrassed. It confuses the client and wastes both yours and his time because the conversation is not flowingyou are talking but not communicating. And yes, if it’s one farm consultant (or engineer) talking to a farm manager (or another engineer) about the use of beneficial insects (or variable resistor) and they both use jargon, it is fine. They understand each other. And I’m guessing I’ve just lost you with the jargon I’ve used there, which is my point exactly. When selling, actively avoid the use of your industry’s jargon. But, by all means, enthusiastically (and hopefully, knowledgably) use the buyer’s industry jargon. One of the ways of overcoming jargon is giving an illustration the buyer can understand.

For instance, I finally understood what internet speeds of 5mbps meant; this seller didn’t tell me 5mbps is “very fast” or means 5 mega bytes per second”, none which I understood. No. This seller told me something different-knowing my love for movies, he explained that the average movie is 700MB in size. That I knew. He went on to explain that 5mbps means

that at that internet speed, I can download a movie in 140 (that’s 700 divided by 5 seconds), or about 2 and a half minutes. A light bulb of revelation ignited in my head… Aha! So that’s what 5mbps means. Now, if only instead of using jargon (saying 5mbps) they’d tell me I can download a movie in 2 and a half minutes, even stretched it to “about 8” for good measure; then I’d appreciate what ‘fast’ means and more importantly, the sale would become easier as what’s in it for me would be clearer. Jargon is a gun many salespeople inadvertently shoot themselves in the foot with. And in case you’re wondering, variable resistor is jargon for volume knob. Educate where necessary “Shaving your hair like that will make your scalp itch unbearably. Hair looks the same from outside but differs immensely within. Yours grows in a spiral fashion from the cuticle, base, thus favouring this other hairstyle which is what I recommend.” And so the man who had walked into my barber’s shop, now wiser, conceded to his advice. Educating the customer is a powerful way to communicate the purchase of a solution. Interestingly, customers do not buy because they have learnt something new. No. They buy because the seller who educates them inspires them with confidence because he comes out as an authority on the subject. Also, the buyer feels cared for, reassured by the depth of repository of the knowledge shared. The essence of product knowledge isn’t for the salesperson to share it exhaustively with the prospect. No. It’s to be used as a doctor does with the patient. Despite the deep well of knowledge the doctor has, he will offer his patient a sip or two of the water from it based on the symptoms the patient has shared. Imagine what would happen if the doctor emptied the entire contents of the well flooding you with what he knows. Dazed, confused and irritated, you’d leave sicker than when you arrived. Equally, make it easy for the customer to understand and decide. Paint a picture sufficient enough to enlighten the buyer and assist him with making a decision.

Many times, this requires the seller to understand the buyer’s circumstancesseeing things from the buyer’s side. Kageche is the lead facilitator, Lend Me Your Ears; Kageche@lendmeyourears.co.ke www.lendmeyourears.co.ke JULY 2019

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MANAGING AN ORGANIZATION IN A COMPETITIVE ENVIRONMENT

nvironment is a force or a factor within or outside an organization that influences its performance either positively or negatively. The organization is surrounded by two main environments - internal and external. The internal environment consists of the firm itself, the owners or shareholders, the employees, internal technology, internal suppliers and internal financiers. The internal environment is largely controllable and the organization can manipulate it to its advantage. On the other hand, the external environment mainly consists of the forces beyond the control of an organization such as the pestel factors. Pestel is an acronym for political, economic, social-cultural, technological, ecological/environmental and legal environments.

PESTEL a) Political factors This explains the level of government’s involvement in the national economy like Kenya in political, social and economic matters. Political factors include government policies, political ideologies, political affiliations and provision of public goods in the economy. Examples

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may include the tax policy, the labour law, environmental law, trade restrictions, tariffs and political stability. Political factors also include areas like goods and services bought or banned by the government. The government is a major buyer of goods and services in the economy to support sectors like health, education, agriculture and infrastructure among others. Political factors can either be a threat or an opportunity to an organization.

b) Economic factors These factors include areas like economic growth, interest rates, exchange rates, inflation rate, the gross national product, income per capita, employment levels and so on. They significantly affect how organizations operate either positively or negatively. For example, interest rates affect a firm’s cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy while inflation affects the cost of the factors of production. c) Social- cultural factors These include the cultural aspects of

the population for example, health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety, religion, connotations, tastes and preferences. Changes in social factors affect the demand for a company’s products and how it operates. For example, changes in tastes and preferences of people may lead to a loss of a big chunk of the market.

d) Technological factors The factors above include changes in processes and configurations due to innovation, automation, new inventions, research and development activities among others. Technological changes can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. e) Environmental factors These include weather as well as climate and climate change, which mostly affect industries such as tourism, agriculture and insurance. This also covers issues like pollution and waste management. Growing awareness to climate change

BUSINESS KIT: MANAGEMENT

and environmental issues is affecting how companies operate and the products they offer.

f) Legal factors Legal factors include issues like consumer law, antitrust law, labour laws, copyrights, health and safety laws and bylaws. These factors can affect how a company operates, its costs and the demand for its products. The bottom-line is that the company needs to operate within the laws. To survive and win in a competitive environment, organizations have to gain competitive advantage over their competitors and earn a profit .Organizations gain a competitive advantage by continuously improving how they conduct business in order to thrive and be better than their competitors. To succeed in the environment, the managers must deliver the following fundamental success drivers: quality, cost effectiveness, speed, innovation, technology and globalization. 1. Quality Quality is the excellence of your products and services. Customers’ expectations have increased on the quality of goods and services they expect to buy from their suppliers. Customers now demand highquality goods and services, and often they will accept nothing below their expected quality. For a company to survive in a competitive environment, it has to produce and supply products of high quality. W. Edwards Deming, and J. M. Juran and other quality gurus popularised the need for organizations to embrace Total Quality Management (TQM) which encourages managers to ensure the following are achieved: 1. Preventing defects before they occur; 2. Designing products for quality; 3. Embracing the philosophy of continuous improvement; 4. Ensuring quality is the responsibility of all employees in the organization; 5. Top management should be committed to quality improvement; 6. Managers should thrive to exceed their customers’ expectation in meeting their quality requirement. Service quality is vital as well. Managers should ensure their customers are given high quality goods and services to satisfy them and exceed their expectations. Companies can achieve customer satisfaction by listening to the customers’ description of the quality of goods and

services they would like to receive from them. Providing world class quality requires a thorough understanding of what quality really is through your customers’ expectations. Quality can be measured in terms of product performance, customer service, reliability, conforming to standards, durability and aesthetics. 2. Cost effectiveness Cost effectiveness means that a company’s products and services costs are kept low enough so that you can realize profits, while pricing your products (goods or services) at levels that are attractive to consumers.

3. Speed Speed is the fast and timely execution response, and delivery of results. Speed separates winners from losers. How fast can an organization develop and get a new product to market? How quickly can it respond to customer requests? An organization is far better off if it is faster than the competition and if it can respond quickly to your competitors’ actions. Speed is a competitive imperative these days. 4. Innovation Innovation is the introduction of new goods and services. A firm must adapt to changes in consumer demands and to competitors. Companies cannot survive in today’s business environment without continuously being innovative. Innovation adds to a company’s competitive advantage, so it should be a strategic goal and must be managed properly.

5. Knowledge management Today’s manager must create a work environment that attracts good people, makes them want to stay and inspires creative ideas from everyone. The goal is to turn the brain power of their employees into profitable products. These are practices aimed at discovering and harnessing the organization’s intellectual resources. Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create value in the organization. Due to competition, organizations need to combine the employees’ talents to achieve unique and significant results. A knowledgeable worker is very valuable to organizations today. This is someone whose knowledge is a critical asset to the organization. Knowledge management is about finding, unlocking, sharing, and altogether capitalising on the most precious resources

of an organization which are people’s expertise, skills, wisdom and relationships. Knowledgeable managers find human assets, help people collaborate and learn, help people generate new ideas, and harness those ideas into successful innovations. Due to the importance of knowledge management, a new career has been developed and companies are searching for knowledge managers. 6. Technology Organizations cannot survive in today’s business environment without the support of appropriate technology. For the purpose of speed, achieving quality standards and getting to be competitive in the market, technology should be embraced by all businesses. Managers therefore should be informed on the technological innovations so that they can adapt the new technology where necessary. Technology can be defined as the methods, processes, systems, and skills used to transform resources into products.

7. Globalization It is the worldwide interdependence of resource flows, product market and business competition. In a globalised world, countries and people are increasingly interconnected through the news, in travel and lifestyles, in labour markets and employment patterns, and in business dealings. Managers need to be enlightened to global realities. This is because globalisation affects all types of business. Companies are in great pressure to improve their products and services so as to face the intense competition from foreign companies. Environment management Environment analysis may be approached from several ways: a) From an input – output analysis whereby the major environment aspects are human resources, capital, managerial and technical factors as inputs. On the other hand, products, services and profits are outputs. b) Social responsibility and ethics approach: Focuses on the claimants in the environment such as the employees, consumers, suppliers, trade unions, government and the general public. Each of them will have a claim in the organization. c) The external – internal approach to the analysis of environment. It gives the following as components: • Technological, economic, political - legal • Social-cultural, historical & JULY 2019

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Mr. Bernard Njoroge, CEO, Adrian Group.

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MAIN STORY: ADRIAN

ADRIAN GROUP: MENTORING YOUNG ENGINEERING GRADUATES Led by its chief executive officer, technology firm rolls out a programme that is aimed at providing young female engineering graduates with training and employment opportunities so that they can succeed in their careers

even years ago, Mr. Bernard Njoroge decided to embark on a mission of transforming lives through entrepreneurship. He therefore started an engineering company and named it Adrian. Playing in the space of information and communications technology (ICT), telecommunication and generation of power, Adrian has grown tremendously within a short span of time. It is a household name in Kenya and regionally. The company integrates systems that are sourced from the international market and it makes them suitable locally and regionally. “We represent international technology brands in the regional market,” says Mr. Njoroge adding that the company has positioned itself as the gateway of cutting edge technology in East and Central Africa with resounding success. “Technology changes the world and that is what informed my decision to venture in that field,” he observes. Paradigm shift From the onset, the entrepreneur took cognizance of the fact that the local technology industry was dominated by multinational players who mainly engaged female employees. It was a major challenge. “I was therefore determined to set up a local technology company that could create room for female employees and check the dominance of multinationals,” he says.

By 2018, the company had managed to bring on board a significant number of female employees. Out of a hundred employees, nineteen were female, while seventy one were male. Nevertheless, that did not satisfy Mr. Njoroge. On a closer look though, he noticed that more men were applying for the jobs the firm would advertise as opposed to ladies. That awkward position put him in a dilemma but after some research, he found out that many ladies graduating as engineers would end up in other careers. As a way forward, his company advertised for engineering positions that were restricted to female applicants aged between eighteen to twenty four years. Out of one hundred and forty applicants, twenty were selected in January, this year to join the company.

By George Gichuki To start with, the new team underwent a mentorship programme in February. The month long in-house programme took place at the Kenya School of Government and it was fully financed by the Adrian Group. The mentors were lady professionals who had successfully pursued careers different from the degree courses they had pursued. The objective of this programme was to enable the young engineering graduates appreciate the fact that they would also succeed in other fields by being open minded. “It was a process of changing their mindset and enabling them to appreciate the fact that they could grow their careers by learning on the job ,” says Mr. Njoroge. Indeed, whereas one of the mentors had undertaken a degree course in medical engineering , she had ended up in business leadership, while another one was a food scientist who had become a successful marketer.

Technology ambassadors From the team of twenty, twelve have been employed by the firm. This team has been branded Adrian’s technology ambassadors. According to Mr. Njoroge, this is a continuous exercise and he is hoping that by next year (2020), the ratio of female to male employees in his firm shall be forty to sixty. In its top management, Adrian has three ladies and four gentlemen, while its board comprises three gentlemen and two ladies. This is unlike many businesses in the

The leader should be able to share his vision with the team members, while giving them space to generate ideas that are beneficial to the organization

country whose boards and top management teams are dominated by men.

Leadership As the team leader Mr. Njoroge is keen on staying connected with his employees and offering them warm treatment. “I endeavour to honour all the promises I make to my team members and once I do so, they also honour the ones they make to me,” he says. Also, he updates himself on both the local and international trends in the telecommunications industry in order to offer his company effective leadership. In addition, he ensures that all his customers are given the necessary attention and treatment in order to cultivate their loyalty. “As a homegrown technology company, we face very stiff competition from the multinationals and hence the need to have loyal customers,” he observes. By next year, the company is optimistic of gaining leadership in the regional market.

Further, he says that an organization cannot be grown by the vision bearer alone. “The leader should be able to share his vision with the team members, while giving them space to generate ideas that are beneficial to the organization,” says Mr. Njoroge. “If you micromanage your team members, they cannot blossom,” he adds. Finally, he observes that leaders should have well grounded strategies that can withstand the test of time. “You cannot build a solid organization by taking short cuts and following the trodden paths,” he ends. Mr. Njoroge at a glance . Marital status: married with four children . Favourite cuisine: beef stew and chapatti . Hobbies: mentorship and football

. Diary: Wakes up at 5.00 am and reports to work at 7.00 am. By noon, he is through with the office work and he goes to the field. JULY 2019

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SHALOM CHEMASE: DRIVEN BY THE DESIRE TO CREATE SOLUTIONS A young and ambitious engineer with a big heart strikes the right chord with her team members and employer

he walks with a firm stride and her head held high. Her eyes and the smile she flashes radiate certain warmth in the room. She carries herself with a feminine aura; it’s hard not to notice her presence. Don’t get me wrong, she isn’t loud at all but she has this magnetic pull to her. She commands attention through her actions, even I had to turn and see the powerhouse who has just graced us with her presence. Don’t get me started on how passionately she talks, every word she utters is clearly well thought of. I don’t know your views,

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but I love a calm collected lady with a fountain of knowledge oozing out of her. I’m sure you are all wondering who I’m talking about. I won’t keep you waiting but first I must admit, getting to have a chat with her was truly inspiring.

Meet Shalom Chemase, a graduate from Moi University. She graduated in December last year with a degree in electrical and telecommunications engineering. While scrolling through her social media feed, a certain advert caught her eye. Adrian Group was calling out for applications from young women who were inspired by technology.

Chemase couldn’t help but thank her lucky stars because this was the perfect fit for her. She immediately dropped her application leaving the rest to fate. After two weeks of anxiously waiting, she received a message informing her that her name had been shortlisted. Chemase went for the interview feeling confident and armed with her best tool; knowledge. Her lucky stars did not let her down as she received a call informing her that she had passed the interview.

The Training She says: “By virtue of the course I had undertaken, it was a perfect fit for me and I was glad that I had secured a position in the company.” After the interview, those who had passed were called for the orientation. They were asked to spare a month because they were to undergo an intensive training programme. This programme was conducted at the Kenya School of Government located in Lower Kabete.

MAIN STORY : ADRIAN During the training, we were taught to create solutions for ourselves and to be self starters who are inspired from within It came at a perfect time for Chemase because she was transitioning from the university into the job market. In as much as the programme was to prepare the young graduates for their jobs, they also got personal development. Adrian Group brought in speakers from Rebranding Minds Africa and Ungwana as well as leading ICT professionals.

“I like creating solutions rather than waiting for someone else to provide them to me,” Chemase says. After completing her high school examination, she applied to study engineering and thanks to her good performance, she joined the school of engineering at Moi University. She had a special interest in engineering because it helps people to be innovative and to create solutions. “Engineering has helped improve the way of life - talk about fibre optic for instance; without good connectivity a lot of businesses would not perform well,” the young graduate observes. Women and STEM subjects It is common knowledge that women shy away from science subjects and mathematics. It’s not as if boys were gifted more than girls in that area. So why is it that there are fewer females compared to males in professions such as engineering? Shalom says that it all comes down to culture. “Where I come from, we are not exposed to the jobs that are traditionally meant for men,” she expresses.

Moreover, she goes on to say that she would like all young girls to appreciate that engineering is a beautiful and prestigious career. Women can equally excel in it as men do because it is not as difficult as people paint it to be. The managing director at Adrian Kenya, Mr. Bernard Njoroge facilitated the

one-month training programme. He did not know any of the successful applicants before hand, yet he took it upon himself to nurture the potential he saw in them.

He kept telling them that by doing something continuously, it becomes a habit. The training sessions inspired and opened up their minds. Additionally, she notes: “During the training, we were taught to create solutions for ourselves and to be self starters who are inspired from within.”

After the training ended, a graduation ceremony was held. Ms. Sylvia Mulinge, Safaricom’s chief customer officer graced the event. The participants were issued with certificates and then officially commenced their work at Adrian Kenya.

Transition from training to employment The work began by splitting the graduates into groups of four. Shalom was placed in the fibre division because as she puts it; she loves everything to do with fibre. The mandate of her group is to make Adrian known especially in the non-traditional markets. With a background in engineering, she is able to articulate the fibre story well. Fibre has revolutionized the ICT sector and those who use it can attest to that. As the team leader, she coordinates the group’s activities, creates various solutions and assists in branding the company as a whole. She ensures that the team is on time when it comes to submitting its projects and proposals. Most importantly, she motivates the team so that it can meet its objectives. “I regard myself a proactive person and a self-starter. I think the other members saw that in me and that is why they chose me as their leader,” she says. She emphasizes that she is a team player who coordinates people in a good manner after taking time to understand their personalities.

By mentoring young ladies before exposing them to the job market, Adrian Group is doing a very commendable job

Her message Chemase advises young ladies that engineering is not a men only profession and they should kill that notion completely in their minds. She encourages them to go for it because she has seen women who have and are excelling in the profession. Moreover, she stresses that they should remain focused and read a lot because the profession requires one to be very knowledgeable and at par with the ever changing world of technology.

“They should work on being part of the solution rather than waiting for solutions to be provided for them. They should also give a deaf ear to people who tell them that it’s a hard course,” she adds. She goes on to say that when young girls are mentored, they’ll make better choices. Mentorship is something she is planning to do back home. In the next five to ten years, she is hoping to become a consultant. Being at Adrian - a fast growing company - has given her an opportunity to grow professionally.

A day in her life Chemase loves writing about travel, business and technology. Her favourite cuisine is fermented milk (mursik) peas, vegetables and rice. She hilariously says that if she is given that, any day and time, she would enjoy it very much. Her day starts at 6 o’clock in the morning. She is a Christian and the first thing she does in the morning is to pray. She then proceeds to take a shower and get dressed. She has sticky notes on her dressing mirror which she reads loudly while preparing for the day. Each day she has something to read on the mirror, either a quote or a memory verse. She then takes breakfast which usually comprises tea and two bananas. On her way to work, she listens to music or at times, reads a digital book.

Currently she is reading ‘Born a Crime’ by Trevor Noah. It’s an autobiography which is very interesting. When she gets to the office, as a team leader, she ensures that the agenda of the previous day has been achieved before setting a new one. At close of business, the team members review what they have accomplished for the day and set new targets for the next one. “By mentoring young ladies before exposing them to the job market, Adrian Group is doing a very commendable job,” says Chemase. It is her wish that other organizations in the country can follow suit. JULY 2019

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MERCY ATEKA: GOING BEYOND THE CALL OF DUTY Young graduate gets a golden opportunity to grow her career

e all know those women — the ones who stride with an air of grace into a room. They are not always the thinnest, prettiest or smartest. Moreover, they are not necessarily arrogant. There is a certain freshness, charm and aura about confident women who are outgoing. They carry themselves with an air of success, grace and determination. The energy changes when they enter a room. Such women are memorable. Mercy Ateka exemplifies such women. Ateka is a graduate of urban and regional planning from the Jaramogi Oginga Odinga University of Science and Technology. She is eloquent and warm. In addition, she has certificates in Cisco networking level one and Kenya sign language level two. “I love mingling with people from different backgrounds and social classes,” says Ateka. She decided to pursue a career in urban and regional planning because she is a trendy person by nature. She is always up to date with the recent trends in the market and loves the technological solutions that are being developed each and every day. “The world is advancing to more complex technological solutions like block chains, artificial intelligence and big data,” she says.

The programme Ateka learnt about the Women Information Technology programme through the social media. A close friend sent her an advert via WhatsApp and she went to Instagram to verify its authenticity. A few days later after dropping her application, she was called for an interview. “Surprisingly I was the first one on the queue because I was excited about it,” she recalls. About a month later, her name was shortlisted and she was requested to go for orientation. Early this year in February, a group of ladies whose names had been shortlisted were taken in for a one-month training dubbed ‘Women Information Technology Programme’. Ateka was one of those fortunate ladies. Through the programme, she was able to mingle with various high profile speakers. The participants were taught about the values of self discipline and self management. “We were nurtured on how to venture into the business world and identify mentors who would support us to grow,” she says. Initially, the main purpose of the programme was to give the participants a more intensive and diverse mental mindset of advancing in the information and technology (IT) field.

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MAIN STORY : ADRIAN As a group, we are able to address a challenge and come up with solutions. We then sell these solutions on behalf of Adrian hence advancing ourselves in the technological market Ateka, as an urban and regional planner is keen on gaining more skills and knowledge in the IT field.

Team leader Due to her outgoing nature and unshakable confidence, Ateka was appointed the team leader of her group. She says: “I sensitize and mobilize my group to achieve the marketing targets that have been set for us.” She adds that all the group members always encourage each other whenever they encounter difficulties in pitching ideas and proposals to clients.

According to her, the reason why she was appointed to become the leader of her group is because of her social nature. She is an inclusive person who mingles with people freely. However, she is not a people pleaser. If something does not sit right with her, she always voices it. Leadership comes along with a lot of responsibilities. She has therefore learnt to be a good time manager and complete all the tasks allocated to her meticulously in order to meet the expectations of her employer. She describes herself as the glue that keeps her team together. “I try as much as possible to accommodate the views of all my team members and that way, we work together every step of the way,” she says. In regard to pitching business proposals to clients, Ateka and her group mostly focus on the construction of roads and buildings. Recently, they secured business from a church located along Ng’ong Road whereby they shall be involved in developing a terrazzo floor. “We are a few months old in the company and we are currently running three projects,” she notes. One of the projects that they are working on is at Adams Arcade along Ng’ong Road. They are

conducting a visibility study with one of the company’s technicians. The other project is just right next to Adrian’s compound; it’s a hospital where they are making follow ups with the client. During their daily meetings, the team comes up with strategies on how to close deals with clients and bring more business to the company. Ateka says that she loves the working arrangement in the company. Tasks are divided in groups and there is division of labour which leads to specialization. After the team members are done and satisfied with their work, they forward it to the next group for quantifying. This is done by quantity surveyors who are able to make the right quotations depending on the costs of labour and building material in the market.

Lessons picked For the short period that she has been part of the company, Ateka has acquired a few skills. For instance, she has learnt the importance of team work and the value of good leadership. She has also acquired public relations skills that she puts into practice when engaging clients. In addition, she has acquired new knowledge regarding artificial intelligence and robotics. “As a group, we are able to address a challenge and come up with solutions. We then sell these solutions on behalf of Adrian hence advancing ourselves in the technological market,” she says. In the near future, Ateka is confident that she will be a big shot in the market. She stresses on the need to work hard in order to excel. “I believe in myself, I’m confident that I have something good to bring to the table,” she says.

Her advice to young ladies (especially those who are still in school) is that they should aspire to be leaders. She further encourages

Ladies need to know that they matter, their opinions matter and that they are the change they crave for

them to be confident in themselves, be selfdriven and most importantly, be masters of their destinies. “They need to understand that they are the only ones who can cultivate the path that they want to follow professionally,” she observes. Moreover, they should be more outspoken and air their opinions on various matters that affect the society. “Ladies need to know that they matter, their opinions matter and that they are the change they crave for,” she says. Adrian Group has given young ladies a platform to kick-start their careers in this tough and competitive market. Ateka is filled with nothing but praise and gratitude to the company. “A lot of our peers are still at home with no hope of ever securing employment and here we are with all these privileges,” she notes. “I do not take this for granted and therefore I am going to work towards the growth of this great company,” she adds.

Ateka at a glance Ateka’s favourite dish is pilau and chicken. She claims that African dishes appeal to her since they are good for her taste buds. She enjoys preparing them whenever an opportunity presents itself. Additionally, she is an usher in her local church and a peer mobilizer. She belongs to the parish development committee where she mobilizes parishioners to come on board on several development projects in the parish.

Her hobbies include socializing, storytelling and travelling. One of her missions in life is to foster humanity through her career. She strives to make the universe a better place. On a typical day, she wakes up at 4:30 am and then proceeds to do her morning prayers, before getting ready for work. She gets to work at around 8.00 am. In the evening after work, she sells books online ranging from novels to text books. She has connections with other international alphas that enable her to purchase international books at an affordable price. Ateka markets her books on WhatsApp mostly. When she gets home, she prepares dinner for her family and also does some cleaning. When she gets to bed, she reflects on how her day went and then plans for the next day.

Oprah Winfrey once said: “Everybody has a calling. And your real job in life is to figure out as soon as possible what that is, who you were meant to be, and to begin to honour that in the best way possible for yourself.” Ateka has figured out what her calling is and is honouring that; you should too. JULY 2019

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MAIN STORY : ADRIAN

NYAGUTHII MAINA: ENGINEERING MY CAREER GROWTH Down to earth but very brilliant, young engineer reflects on her experience at her first work station

yaguthii Maina is a mechatronics engineering graduate from Jomo Kenyatta University of Agriculture and Technology (JKUAT).

She is passionate about the development of design solutions in engineering. Her childhood dream was to become a pilot but her parents were not keen about that. She therefore decided to pursue aeronautical engineering. Nevertheless, since the course was not being offered locally, she opted for mechatronics engineering.

She was not disappointed. “I really enjoyed studying mechatronics engineering since it gave me an opportunity to sharpen my creativity,” she says. Opportunity She learnt about the job opportunity at Adrian through one of her WhatsApp groups. “The advert was eye catching and I therefore decided to try my luck,” she says. Before long, she was invited for an interview and she was successful. To start with, she underwent an intensive training programme for one month. One of the sessions was in personal development and she learnt how to develop her personal goals, vision and core values.

She also learnt how to work with various types of personality including: driver, expressive, amiable and expressive.

According to her, the driver walks ahead of the park and shows people the path that they should take. The analytical person on the other hand is meticulous and looks critically at the nitty-gritty of the situation at hand. An amiable person is a very good team player, easy going and kind hearted. Lastly, expressive people are very energetic and they foster friendships easily. The other

training sessions were on the importance of product knowledge and understanding the target market. Team leader “In my team, two members are analytical, the third one is a driver and the fourth is amiable,” says Nyaguthii. “I have therefore taken time to learn the dynamics of this group so that none of the members may feel unappreciated,” she adds.

She is the team leader of the managed services division technology ambassadors at Adrian Group. Her role is to ensure that the team meets its target and to facilitate bonding sessions among the members so that they can be focused. She also ensures

Nyaguthii’s personal vision is to be a source of inspiration to her colleagues by making their lives easy and comfortable. Her core values on the hand are ambition, adaptability and responsibility

that her team interacts closely with the other two. They work closely with both the construction and fibre division teams so as to enhance an exemplary experience for the customers. Leadership within this team is on a rotational basis. “We want everyone to experience what leading a team entails,” Nyaguthii says. Nyaguthii’s personal vision is to be a source of inspiration to her colleagues by making their lives easy and comfortable.

Her core values on the hand are ambition, adaptability and responsibility. She is planning to enrol in a masters degree in mechatronics engineering in order to grow her career. In the same breath, she is looking forward to mentoring young ladies pursuing the course as a way of giving back to the society.

The young graduate acknowledges the effort of the Adrian Group’s management to train her ( together with her twelve colleagues) as an entry point to the ever competitive labour market. “This is an invaluable springboard for young female graduates keen on growing their careers and playing a key role in the socio-economic development of our country,” she happily ends. Nyaguthii at a glance Diary: She wakes up at 4.30 am, meditates, prepares herself and takes breakfast. At 8.00 am, she reports to work, holds a meeting with her team and sets the tasks for the day; Hobbies: Baking and reading. She is currently reading ‘All Creatures Great and Small’ by James Herriot; Favourite dish: Coconut rice with minced meat or chicken.

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DRILLING MONEY FROM TYRES Beryl Munyui discovers her artistic talent and reaps big on creativity

assion is one of the most effective motivators when it comes to launching a business. Finding your passion is sometimes about finding your place. Such is the case for a veterinary doctor who quit her job to pursue the business of interior and exterior décor.

“Despite having trained as a veterinary doctor, I always knew that I am gifted in the arts. The confirmation for this gut feeling came two years ago when a close friend consulted me for advice on how to design her office in a unique way,” explains Beryl Munyui.

This request intrigued her and had her imaginations go wild. Her artistic spirit was at work and what resulted from this pursuit was an idea, too unique yet aesthetic enough to become a disruption in the interior and exterior décor industry. She had landed at the idea of recycling tyres to make furniture. This idea worked out so well and appealed to her customer who had love for recycled material. Her new idea became an instant hit. “The different colours and the extraordinary shape of the resultant furniture drew more and more people.” After producing her first batch of office furniture made of purely recycled tyres, many people started calling her as they sought to customize their homes and offices. Before she knew it, her simple idea had turned into a business.

With the recycled furniture business, she has never looked back. This is the reason she founded Nigida interior and exterior design limited to serve more people who appreciate use of the recycled furniture. “Operating an interior and exterior décor business requires more than just furniture.

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Beryl Munyui showcases her tyre seats.

Customers will come requesting for an entire makeover of their spaces and so an entrepreneur, I had to think outside the box and bring in more products,” she explains. Nigida interior and exterior design today sells the tyre furniture, curtains, curtain holders and tiebacks for curtains. For interior décor, she also designs and sells furniture for homes, offices and schools.

In outdoor décor, her firm does landscaping as well as design and sale of outdoors furniture, with tyre seats being a hot favourite for many people. Target market Munyui targets mostly people with small homes who in most cases have back yards and would like furniture for these spaces.

CAREER GROWTH

Tyre seats in the making. Apart from these are offices, and anyone who appreciates the use of recycled materials as well as those who like blending art with nature. Due to the many customers that she has since acquired through word of mouth marketing and social media, she has turned her Edenville estate home along Kiambu road into a workshop. To make the business fit into her compound, she only makes the recycled furniture on order.

“The tyre furniture can be quite voluminous and therefore require sufficient space for storage. That is why we don’t make the furniture without order,” she explains. Munyui says that she is happy that most Kenyans are slowly accepting to use items made from recycled materials, a big boost for her business. Turning an old tyre into an adorable piece of furniture can be a tedious exercise. The process The process of making the tyre seats starts with collecting the tyres. “We collect tyres

or buy from people who have tyres that can no longer be used. However, they have to be neat, and without any wires hanging out.” Once they have been acquired, they are then cleaned of all the dust and any other dirt and then left to dry. The next step is to fix them together. For tyre seats, a mesh is then woven on top of tyres. Some tyres are fashioned into high end tables. This however, depends on the shape of the piece of furniture being made. The wire mesh is meant to make the seat comfortable and springy. The tyre are then painted in different colours depending on the taste of the client. There are health hazards involved in this process.

“The paint as expected has a strong smell and therefore, while painting it is absolutely necessary to put on protective gas mask to avoid inhaling the paint,” she explains. It takes her up to two hours to make one tyre chair as long as she has all the materials ready.

The process ends when she makes cushions for the seats. She points out that some customers prefer the tyre seats without the cushions. Munyui’s love for abstract art inspires her designs.

Munyui works with various craftsmen to paint the tyres according to the clients’ specifications. “I get the craftsmen depending on the complexity of the furniture on order,” she adds. The tyre seats range from 10 500 shillings to 13 000 shillings depending on the size. She says that this business can be slow but it is a well-paying business.

To reach as many people she can, she uses face book and word of mouth as a marketing tool. Advice to aspiring entrepreneurs Munyui’s experience in business has taught her that the best kind of business to venture in is one that involves passion. “By doing a business that one enjoys doing, one is most likely to do well in it, because every step of it is fun,” she says.

Aspirations Her next goal is to scale up her business and reach as many people as possible. “I am planning to get the business to other parts of the country and beyond. There is so much potential especially in the corporate and I hope to get companies advertise their brands on tyre furniture, she concludes. JULY 2019

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HANDPICKED FROM THE FARM

Lucy Karingithi in partnership with her son Jeremy, offer a solution to the worries of clean consumption n Nairobi and many urban areas, a population explosion is driving the demand for fresh vegetables and fruits.

Satellite towns like Syokimau, Kiambu, Ongata Rongai, Ruaka and Thika have been growing at a fast rate due to urbanisation, according to research by Hass consult. Other than this, the healthy eating campaigns that persuade the middle class population to live healthy lifestyles have also fuelled the rising demand for fresh vegetables and fruits.

For many urban residents, getting the best quality vegetables and fruits is always a challenge. This is despite the fact that there are numerous markets selling fresh farm produce around the city.

The problem is that little is known about the conditions the vegetables have been grown in. In fact, most Nairobi residents suspect that some of the fresh vegetables and fruits making their way into their kitchens are grown along dirty rivers and burst sewers. Convenience is another factor. Most people especially in the middle class segment lack time to visit informal markets.

Meeting the need Lucy karingithi, a Syokimau resident, had always found it hard to get quality vegetables for her family.

In 2014, she started Mboga Masters, a groceries supermarket in Syokimau. “I

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Lucy Karingithi at her green grocery shop. struggled to get clean vegetables for my family and that is one of the reasons I had to come up with the idea.” Lucy partners with local farmers to provide fresh vegetables and fruits to residents. “It takes time to get the right kind of farmers growing healthy vegetables but when we get, it is always worth it,” she quips. Located inside Soham filling station in Syokimau, Mboga Masters strives to be the citadel of quality farm produce. Since introducing the noble idea into the local market, it has been well received, with demand for more commodities rising each day. “People liked the idea so much. I started receiving customers from day one and to keep them coming, I have to be consistent about the quality I give them.”

At some point, she had to stock related items like cereals and flour among other food items to supplement the income. Among the consumption items Lucy stocks are: sea salt, herbs and water; critical components for healthy consumption.

Watching her attend to customers, it is clear the former school teacher is passionate about healthy eating which has always been her biggest inspiration in this business.

There is a shift in eating habits, particularly in urban centers and among high-income consumers. A few years ago, for instance, traditional foods were considered to be a preserve of the poor but as Lucy explains, this is slowly changing. “We are seeing some changes in buying habits. Many of our consumers now want to eat these foods

BL KILIMO the right quality.” To keep up, therefore, she has to be selective of what she stocks and that’s what makes their business stand out. With competitive prices, Lucy is upbeat that her groceries store will continue providing customers with quality foods. “Our prices might seem higher than those of the open market, but when customers realise what we are telling them is true they keep on coming back.”

With her deep knowledge of various kinds of vegetables and herbs, Lucy has always found it rewarding to explain to her customers the different health benefits of various items on display at her shop. Jeremy Kinyua explains the diet value of the food offered. because they are becoming more health conscious. We are seeing the trend even among our young consumers going for more agricultural produce and shunning processed alternatives,” she says.

This she says is the reason the idea of formal fresh produce retail is doing well because these customers don’t want to hassle to source produce such as stem tubers and traditional African vegetables. She notes that a key selling point for Mboga Masters is its wide variety of fresh produce. Sourcing the fresh vegetables and fruits directly from farmers gives her a competitive edge.

Most of the produce at Mboga Masters is sourced from Lucy’s own farm, located within Syokimau. “I have a very productive farm at Syokimau which is operated by my husband.” She however adds that to stock variety she has to source from other farmers. “We cannot grow everything we sell so we contract farmers to supply us with food items. However, we visit the farmer to see where they grow the food items before we can contract them.” As the enterprise grows, another challenge that the firm will face is ensuring consistent supply of produce especially now that some consumers are demanding organic produce. “Customers want to know that the produce they are buying is healthy and without toxins. Some consumers have ailments, such as diabetes and lupus, and have even more strict eating patterns. So we really have to go out of our way to ensure we have what they need every day, and that it is of

“I feel good and they feel good to learn so many new things about the same vegetables they have known all their lives. I even print posters which I stick on walls,” she says pointing at a poster on the wall of her shop. Other than the vegetables business, Lucy being environment conscious, also stocks biodegradable shopping bags.

She says she looks forward to the day when the government will make good its ban on plastic bags, which are a menace to the environment. The duo Lucy runs the thriving enterprise with the help of her son Jeremy, a graduate of a British University with experience in business management.

“My previous work experience was with multinationals where there is a lot of order, structures and investment in top quality. So when I joined the business, the biggest challenge was just ensuring we are attracting good talent, training people, and getting them to think about career growth not just doing the same thing every day,” he explains. Jeremy says demand for formal retail services is on the rise and has injected fresh ideas into the business. He introduced an in house kitchen that serves meals. He also introduced a butchery section after analysing the demand for meat in the area. The mother and son duo says they have managed to build an amicable working relationship. They have leveraged Lucy’s experience in agribusiness and Jeremy’s business school training and international exposure. “She is very quick at trying things while I take a longer time to turn around because I

first want to see facts and numbers. We have reached a good balance because I know even though I bring science, she brings gut feeling and valuable experience,” he says. Mboga Masters also runs an online store that seeks to deliver fresh produce and ready food to customers within and around the area.

The firm also delivers its goods to the capital city, where demand for fresh produce is always high. It has contracted a logistics company that makes deliveries on its behalf.

“We want to build a new concept that we can replicate in other satellite towns, but also within Nairobi, and be able to exist in the same environment with supermarkets. Syokimau is a good testing ground for us because it is not a unique place. There are many other places across the country that has similar characteristics and customer profiles.”

The restaurant became an instant hit due to the rich menu on offer. Jeremy has grand ideas to take the restaurant business to the next level. “We introduced an open plan kitchen and it has become a hit with local workers who come to dine here. We are also experimenting with meetings and we are marketing the restaurant as a meeting venue,” he offers. The enterprising duo looks forward to making their small enterprise a household name in and around Syokimau.

Hurdles Like any other business, Mboga Masters has had its challenges. As Lucy explains, the sourcing process is lengthy. “Sometimes the weather affects produce, other times commodities run out of stock which means travelling long distances to get produce, but we still have to be true to our standards,” she explains. What it takes Commitment is key, if this business has to succeed. “This is because, it may take so much more than just buying and selling, it takes going out of the way to source quality produce.”

Secondly, one has to have financial discipline. “Business requires a lot of integrity, hard work and accountability.” While she handles the sourcing and quality assurance, Jeremy is in charge of operations and finances. JULY 2019

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Improved kienyeji chicken at Homerange Poultry Kenya.

LAWYER BANKS ON KIENYEJI CHICKEN TO GENERATE WEALTH Ian Mutwiri quit his job and ventured into poultry farming which he now says is the best decision he has ever made

“

If you are not enjoying your job, then you are in the wrong profession,” opens Ian Mutwiri, chief executive officer at Homerange Poultry Kenya.

Mutwiri, who is a lawyer by profession, has never practised law. After graduating, he secured a job in the banking sector but later realized that he was not happy. He therefore decided to quit in 2010. “Although the job was economically fulfilling, I was not emotionally satisfied. I wanted to invest in something that I like.” By then, he was just 25 years.

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After trying his hand in a few business enterprises including branding and real estate companies, Mutwiri eventually decided to venture into farming. He did intensive research on rabbit and pig farming, but the issues of space, where he could buy piglets, market as well as profitability were major challenges. Ultimately, he settled on poultry farming where he considered rearing layers and broilers. However, he was put off by the costs and risks involved. Besides, he did not want to rear exotic chicken.

Luckily, while he was still doing his research, he came across the just launched improved kienyeji chicken by Kenya Agricultural Research Institute (KARI). “The product was new in the market thus there was little information on the internet. “I therefore decided to go to KARI offices to learn more about the breed,” recalls Mutwiri. That same day he ordered 200 chicks (which were to be delivered a month later), bearing in mind that he had no space or chicken coops where he could keep them. “I leased a small piece of land in Ruaka and started to construct structures. The lease cost me Kshs. 5,000 per month,” he explains. Today, Mutwiri owns Homerange Poultry Kenya that purely specializes in the sale of KARI improved kienyeji chicken. He has over 5,000 kienyenji chicken. He says he earns a tidy sum from the sale of the birds. His Ruaka farm has over 2,000 chicken, while another farm in Syokimau has over 3,000. Homerange was established in 2013 and has continued to provide farmers with quality chicks besides building their capacities through training and support

BL KILIMO However, the introduction of improved kienyeji chicken by KARI in 2012 has given a new face to poultry farming in the country. “It is a cross breed of the best indigenous kienyeji chicken,” avers Mutwiri. They have not been cross bred with any exotic breed. The benefits of the breed are many. To start with, it has a higher resistance to common poultry diseases. However, proper disease management by maintaining appropriate hygiene standards and vaccination are required. Secondly, improved kienyeji chicken are able to make use of locally available feeds including waste from kitchen, local plants, insects and worms.

Ian Mutwiri, chief executive officer, Homerange Poultry Kenya. to enable them achieve success in their poultry farming ventures.

Even though the kienyeji chicken take longer to mature, Mutwiri chose this breed since it is cheaper to feed compared with other exotric breeds. The chicks are also resistant to diseases unlike other breeds such as layers, broilers and the ordinary kienyeji chicken. “I sell a one day old chick at Kshs. 120, a month old at Kshs. 300, while a mature chicken costs Kshs. 800.” When you do your maths well, you realize that the Kienyeji chicken is more lucrative,” he quips. Quite techno-savvy, Mutwiri has exploited digital platforms to learn tips on poultry farming. In fact, he has written a comprehensive rearing guide on kienyeji chicken farming that sells at Kshs. 850. “The market is there. In fact, you cannot satisfy demand for Kienyeji chicken in Kenya. “As a matter of fact, the orders I have for day- and month –old KARI improved kienyeji chicken is overwhelming.” Besides, the practices applied on this breed makes it healthier and of high quality. Currently, people who are more health conscious have resulted to consuming kienyeji chicken meat. What is KARI improved kienyeji chicken? Rearing of kienyeji chicken in Kenya is a widespread type of poultry farming that is mainly practiced in rural and semi rural areas. It is mostly free-range where farmers keep as few as two birds receiving minimal input and are left to scavenge for their own food.

“The cost of producing a kienyeji chicken from day old to five months is about Kshs. 350.”

Furthermore, hens start laying eggs at 4.5 months, produce more eggs compared to ordinary kienyeji (24 to 26 eggs every month), grow relatively fast and weigh more in terms of kilos on maturity. Generally, through the application of various best practices such as proper housing, feeding, disease management and incubation, hatching and breeding, farmers are guaranteed of high returns. Training Homerange provides training to individuals, organizations and groups among other social gatherings on best practices which should be applied in poultry farming in order to maximize production. “In the past three years, our training has benefited more than 5,000 individuals who have engaged in poultry farming or are planning to venture into it.”

The training is offered at least once a month and covers both theory and practical. Practical in the sense that participants get an opportunity to visit one of the Homerange’s poultry farms in order to conceptualize and learn the application of the various best practices. Participants are drawn from the members of the public who are interested in poultry farming. Furthermore, Homerange conducts off-site training. It involves training a group of at least 30 people at their locality rather than travelling into Homerange farms. This cuts down on costs.

Mutwiri says that through mutually beneficial partnerships with both private and public institutions, the company ensures that poultry farmers access vital information on chicken rearing. “In

September 2015, we partnered with the Nation Media Group, Egerton University and Wambugu Farm Agricultural Training Center which took to Nyeri the first ever seeds of gold poultry farmers’ clinic. Over 2,700 farmers attended the event.” During such forums, participants are encouraged to interact with experts on poultry matters while making enquiries on areas they are facing challenges. Maintaining records Keeping complete and accurate records of daily egg production, feed intake and hatching is paramount. Vaccination and medication records are also important in case of a disease situation as it guides to know the probable source of the problem and the best management protocol. Through this, famers are able to determine the level of profit or loss made by the venture therefore are able to make informed decisions.

M-kuku Recently, Homerange launched M-kuku. It is an SMS based platform that provides essential poultry farming information. They include kienyeji farming tips, incubation and hatching, agrovets shops nearby, feeding, diseases and market among others. “The essence is to reach as many farmers as possible especially those in rural areas who have no access to internet,” observes Mutwiri. Farmers can use their normal phones to get the information at low cost. To make the service free, Mutwiri is in contact with various companies that are going to advertise on the platform. Farmers will only pay normal SMS rates. “The aim is to revolutionize poultry farming in the country.” Mutwiri is looking forward to set up a support center that will employ trained officers who will be responsible for offering free services to farmers. These will include responding to queries concerning poultry farming.

According to the CEO, his poultry firm has achieved major milestones. The youthful entrepreneur has been able to avail over 250,000 kienyeji chicks to farmers, created employment, has 50 distribution networks across the country, besides growing the number of chicken from 200 to over 5,000.

“In five years time, there is nothing else that will be consumed in this country except kienyeji chicken. It will be affordable and accessible. To achieve that we will introduce more farmers to chicken rearing and create a market for them.” JULY 2019

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HE COULD HAVE JUMPED THE HURDLE; BUT HE CHOSE TO GO ROUND IT Samuel Mbugua set out to do pig farming, but hurdles along the way turned him into a hydroponics specialist

hen challenges strike, they can either be pitfalls or turn around opportunities. When Samuel Mbugua a biochemistry graduate quit employment from a packaging firm, he did not foresee the change of stance that would follow. He teamed up with a group of friends and delved into pig farming eying the rising demand for pork. However, just as their business was gaining traction, the government imposed a value added tax on all animal feeds and this meant a sudden rise in the costs of their new found venture. They had to find an alternative to expensive feeds. Changing tide The ebb of the tide would come in as the commonly known hydroponics technology. Well, there they were experimenting on this concept and trying to make it practical enough to solve the scarcity of animal

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feeds they were facing. “This idea has since morphed into a registered company called Grandeur Africa which specialises in installation of hydroponic units.“We also help farmers understand this concept and how they can use it to solve the animal feed crisis especially in dry areas,” says Mbugua. Using their website, social media pages as well as referrals, the firm has managed to reach most people in various counties in Kenya and beyond. “We have a presence in Uganda, Nigeria and Tanzania. It is our core service now…though we still rear pigs to pad our income, this has been our mainstay,” he points out.

Looking at the number of visitors who frequent their website every month, it is clear that the farming technology is gradually gaining popularity. How hydroponics work Hydroponics is a subset of hydro culture.

This is where plants are grown in water without soil. Mineral nutrients solutions are used as a substitute for soil. Terrestrial plants are grown with the roots inside the mineral nutrient solution. They can also be grown in inert media such as perlite, gravel, wool with minerals, clay pebbles as well as coconut shells. It is a relatively new art of farming in Kenya.

It’s already being used to increase farming outputs and grow plants in habitats that wouldn’t normally sustain them. The thinking behind this is simple. Plant growth is often limited by environmental factors. By applying a nutrient solution directly to a plant’s roots in a controlled environment, a farmer can ensure that the plant always has an optimal supply of water and nutrients. This nutritional efficiency makes the plant more productive. In conventional agriculture, soil supports a plant’s roots – helping it to remain upright

BL KILIMO “It was tough to get any form of financing. We had to bank on friends and relatives,” he recalls.

Other than inadequate funds to grow the business, Mbugua says that his team has to follow up with the customers to see their progress, which is a costly affair.

“This concept is still not mainstream; we have to keep on educating farmers especially those in far flung counties.” In recent days, debate has been raging about genetically modified foods (GMOs). Due to the low awareness of the hydroponics concept, some farmers confuse it with GMOs. Seeds from which fodder grows.

– and provides it with the nutrients it needs to grow. In hydroponics, plants are artificially supported, and a solution of ionic compounds provides nutrients instead.

To set up a hydroponic fodder unit, a farmer needs to construct a shelter as crops will not grow in the open.As Samuel explains, one needs a shade net and good quality seeds as well as aluminum trays.The hydroponic fodder takes up to seven days to mature.

“The maturity of the fodder required depends on the animal being fed. For example, cows require seven day old fodder, rabbits require four day old fodder,” says Mbugua. “It must be served while it is still fresh so that it doesn’t lose its protein content,” he adds. Most parts of the country recently experienced drought. As a result, animal feed became scarce and expensive. Indeed, hydroponics fodder plugged that gap, giving farmers a lifeline. Although hydroponics relies essentially on water, the system is efficient in managing the re-source. Studies have indicated that hydroponics systems are at least ten times more efficient in water usage in comparison to field farming.

According to proponents of the technology, hydroponics is the fastest growing sector of agriculture, and itcould well dominate food production in the future. As population increases and arable land declines due to poor land management, people will turn to new technologies like hydroponics

and vertical farming to create additional channels of crop production.

Advantages of hydroponic farming The advantages of this technology include elimination of soil pests and soil-borne diseases. Crops grown this way are said to produce higher yields. For example, the yield of the tomato plants grown hydroponically tends to be 30 to 50 percent higher than the one of conventionally grown plants. Hydroponics also can be carried out by small-scale farmers due to low land use. In addition, this method minimizes human labour as it takes only one or two people to maintain a hydroponic shed. In growing fodder, the process starts by rinsing the seeds and soaking the same in water for thirty minutes. The seeds are then transferred to germination trays and stacked into a module. A typical module has seven compartments, each for every day of the week. The module produces 500 kilograms of fresh fodder per day in a seven day cycle. In addition, it can feed 35 dairy cows or 125 sheep or 125 goats or 50 horses or 100 pigs daily. The stock feeding procedure involves the removal of fodder ‘bricks’ or ‘biscuits’ from the module. These are then transported to the desired feeding destination and are placed in feeders on the ground for animals to eat. Hurdles Access to finance is one of the main challenges facing young farmers in Kenya. While starting the venture, Mbugua and his team struggled to raise funds.

“We have to keep on spreading the word about hydroponics and its advantages. We meet people who claim that this is GMO because of the fast growth. It is not true,” asserts Mbugua. The fodder is produced without the use of any hormones, chemicals, fertilizers or synthetic growth stimulants. There are no fungicides or pesticides used that could contaminate the meat or milk. Other crops grown in hydroponic conditions include tomatoes, lettuce, strawberries, potatoes, melons, beans, snow peas, carrots, pumpkins, beets, sweet corn, mushrooms and artichokes.

Conclusion Most young graduates like Mbugua are leaving their white colour jobs to venture into agribusiness. This trend has seen technology being integrated to agribusiness because the youth are tech savvy. According to Mbugua, farming pays off and to be successful, one needs to be diligent and patient. Mbugua, now an experienced farmer, advises the youth to master their field even as they venture into farming. “When you know your trade, getting a market is easy,” he says. “One of the reasons why farmers do not turn a profit is that they have not been able to master the law of supply and demand – when the supply is low, prices go up and vice versa,” he observes. Currently, Mbugua is setting up an agribusiness complex in Kajiado county where he will host demonstrations, a fish and livestock farm and fodder units.

“We have a calling of making agribusiness an awesome economic activity in the country, and to that end, we are looking forward to reaching as many farmers as we can in the next five years,” he ends. JULY 2019

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BIASHARA PICTURE

Equity Group MD and CEO, Dr. James Mwangi and Equity Group Foundation MD, Zainab Jaffer (extreme right), with 35 top professors from Harvard Business School, one of the most prestigious universities globally, when they paid a courtesy call to Equity Bank. The team led by Professor of History of African and African American Studies, Caroline Elkins (on his left) and Professor of Business Administration, Srikant Datar (on his right), sought to understand the bank’s business strategy that has led to its success regionally.

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