Bl magazine nov dec 2014 by BIASHARA LEO MAGAZINE

NOVEMBER / DECEMBER 2014 I KSHS 250 I USH 7,500 I TSH 5,000 | RWF 1,900

BUSINESS KIT

FEATURES

MANAGEMENT & OPINION

BL KILIMO

»THE CITI MICROENTREPRENEURSHIP AWARDS »PENSIONS

»MARKETING »HUMAN RESOURCE »PUBLIC RELATIONS

NOVEMBER / DECEMBER 2014

»EXECUTIVE PROFILE »YOUNG VOICE

»MODERN FARMING »ECO - AGRICULTURE

CELEBRATING YOUNG ENTREPRENEURS

BIASHARA LEO

HOW RESILIENT YOUNGSTERS HAVE MADE IT IN BUSINESS DESPITE ENCOUNTERING COUNTLESS CHALLENGES

IT ET CO MP

E RC U SO OF W LS A RA RI E T A M

LOANS

WWW.BIASHARALEO.CO.KE

OPPORTU

NITI

Contents

Welcome

NOVEMBER / DECEMBER 2014 NOVEMBER / DECEMBER 2014 I KSHS 250 I USH 7,500 I TSH 5,000 | RWF 1,900

FEATURES

»THE CITI MICROENTREPRENEURSHIP AWARDS »PENSIONS

»MARKETING »HUMAN RESOURCE »PUBLIC RELATIONS

MANAGEMENT & OPINION

NOVEMBER / DECEMBER 2014

»EXECUTIVE PROFILE »YOUNG VOICE

BL KILIMO

»MODERN FARMING »ECO - AGRICULTURE

72.

CELEBRATING YOUNG ENTREPRENEURS

Eco-Farming

BIASHARA LEO

HOW RESILIENT YOUNGSTERS HAVE MADE IT IN BUSINESS DESPITE ENCOUNTERING COUNTLESS CHALLENGES

BUSINESS KIT

OPPORTUNIT

IES

28. Marketing 30. Human Resource 32. 34.

ET IT IO

LOANS

CE UR SO OF W LS RA RIA E AT M

WWW.BIASHARALEO.CO.KE

Articulate

3 4 6

CORPORATE NEWS

Welcome More Than a Thousand Words

Equity Bank MTN Save The Children VAELL MKU

George Gichuki EDITOR

Biashara Leo BUSINESS KIT

MANAGING EDITOR

36.

MAIN STORY Celebrating Young Entreprenuers SKILLS & DEVELOPMENT 48. Zetech University

CAREER GROWTH

STANDING OUT

50. Otoms Entreprises

14. Liberty Life Kenya 16. Kenya Re 20. Kenya Women Holdings 22. Crown Paints

FEATURE

HATS OFF TO ALL ENTREPRENEURS

ntrepreneurship is intriguing. There are some people who venture into it with bags of cash, start big with seemingly solid enterprises, but after a while, they throw in the towel. Paradoxically, others start small with capital which is nothing to write home about, yet after a few years, they are able to establish profitable businesses . How they successfully swim in the turbulent waters of entrepreneurship which are infested with sharks and other lethal creatures though mesmerizing is often not easy to unravel. As they tell their stories, they sound like fiction and many questions go unanswered. How are they able to come up with unique and winning ideas for instance? Is it by luck or coincidence that they are able to surmount incredible obstacles? How are they able to penetrate markets which are giving the giant players nightmares? How are they able to successfully venture into an industry they have no formal training in and subsequently employ professionals who are more educated than them? Indeed, these are mind boggling questions which even celebrated scholars in entrepreneurship find hard to crack. Be it as it may, one thing which stands out is that those who venture into business out of choice often succeed. They are more passionate about achieving their dreams compared to their counterparts who are forced by circumstances ( for instance, retirement and inability to secure a job or loss of one) to try their hands in business. The latter group grudgingly runs its enterprises with little or no enthusiasm. As far as they are concerned, this is a punishment from a ruthless employer or a government which is not creating enough jobs. Amidst this endless whining, their fragile businesses often crumble like a house of cards within a short period of time. Another category of entrepreneurs which rarely succeed comprise those who are out to grow rich quickly. Lured by the lifestyles ( like expensive cars and luxurious houses) of the ones who have made it in business, they too start enterprises but they are not patient enough to grow them into profitable outfits. They often misuse the cash generated by their businesses instead of using it for further investment. By trying to have their cake and eating it, such characters run down their enterprises as fast as they set them up.

22. C4D Lab

52. The Citi Micro-entrepreneurship Awards 66. Pensions

Sadly, the formal education system has over the years contributed to the misinformed view that entrepreneurship is for those who fail to get good grades in their examinations. Nothing can be further from the truth! Indeed, the delicate management and leadership skills required to establish and run a successful enterprises require a very sharp brain.

MANAGEMENT AND OPINION

BL KILIMO

As we come to the end of the year, this publication celebrates those who have defied great odds to build solid businesses which have created wealth not only for their respective families, but also for our beloved country . These heroes and heroines ( whether young or old) are great pillars of our economy who deserve all the necessary support, especially from the government and its respective institutions.

The Techie

24. Executive Profile: Estelle Verdier 26. Young Voice

69. Modern Farming

76. Biashara Picture

george. gichuki@asantemedia.co.ke MERRY CHRISTMAS AND HAPPY NEW YEAR TO ALL OUR READERS, ADVERTISERS AND WELL WISHERS

Amos Wachira STAFF WRITER

Anthony Kiganda BUSINESS DEV. MANAGER

Jared Odwar MARKETING MANAGER

Emma Nuthu BUSINESS EXECUTIVES

Okumu Sylvester George Marenya

SUBSCRIPTION / CIRCULATION

Joe Mwangi MARKETING ( INTERNS)

Carolina Njeri Cynthia Chero DISTRIBUTION

NATION MARKETING AND PUBLISHING EDITORIAL CONTRIBUTORS

Ephraim Njega Jeniffer Kamau Fatuma Ali DESIGN AND LAYOUT

Felix Rurigi felixrurigi@gmail.com ILLUSTRATIONS

Stano

PUBLISHED BY: ASANTE MEDIA LTD.

P.O BOX 25239-00100 NAIROBI TEL: 020- 2095868/2508026 Cell: 0733-966 270 Email: info@asantemedia.co.ke Website: www.biasharaleo.co.ke BL is published monthly.

Views expressed in this publication are those of the authors and do not necessarily reflect the position of the publisher. ©2014 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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NOVEMBER / DECEMBER 2014 BIASHARA LEO

NOVEMBER / DECEMBER

2014 BIASHARA LEO

MORE THAN A THOUSAND WORDS

“

Sakina Hassanali, head of research and marketing, HassConsult House prices have began rising as the market feels the delayed side-effect of high interest rates three years ago which slowed down supply. It now seems that our market is moving into a renewed upswing which we also predicted based on the slowdown in new buildings that struck with the interest rates of 2011 and 2012.”

Don’t Just Save Your Money....Invest Now !

INVEST IN URITHI SHARES TODAY

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Ben Chumo managing director, Kenya Power The new design by Kenya Power known as Single Wire Earthing Return (SWER) will help us save in every aspect and this should bring down connection rates within the 600 meter radius to an average of Sh300, 000 from the current Sh105, 000.”

“

AKI chief executive Tom Gichuhi. Insurers of private cars recorded a collective loss of Sh746 million compared to negative Sh100 million in 2012, a trend linked to price undercutting in the sector. This can be attributed to the failure by underwriters to adhere to the prescribed motor underwriting guidelines issued by the Insurance Regulatory Authority. However, most companies have improved their claims management process which has helped in taming leakages.”

Shares Type

Value

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Ordinary Shares

7,000 x 5

KSHs 35,000

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Premium Shares

50,000 x 2

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Corporate Membership

Your Obligations

Our promises

1. To provide Accurate personal details during Membership Registration

1. To search genuine properties for you at reasonable cost

2. Participate by selecting and booking properties of your choice

3. To produce ownership documents e.g. Title deeds and ownership certificates in given reasonable time.

3. Pay through Mpesa or Bank and forward slips for timely accounting

4. To develop suitable development concepts and spearhead projects development.

4. Participate by attending our free investment education programme

5. To pay investors returns on time. 6. To employ prfessionalism that will supervise and monitor members’ projects so that quality is not compromised.

5. Participate by attending SGM and AGMs.

7. To serve you 6 days in a week even at the comfort of your desk

VALLEY DAM ESTATE

“

Bob Collymore,CEO, Safaricom. The venture fund is a much-needed catalyst that will help actualise our aspiration to nurture a vibrant ICT economy in Kenya. It will directly address the key start-up and developers’ pain points such as the cost and speed of accessing a platform where they can test their solutions.”

2. To provide receipt and other payment and other documents in good time.

CITY EDGE PROJECT

Members empowerment, training, equipments and inputs supply, farm management agro-insurance buyin back assurance 1. Rabbit Farming 2. Bee keeping 3. Greenhouse farming 4. Kuku kienyeji

For more information contacts on THIKA HEAD OFFICE URITHI CENTRE, SECTION 9 BEFORE CHANIA TOUTIST LODGE TEL : +254 714183001, +254 718442674 +254 722272539

Situated at North East of Thika town and overlooking Kilimambogo 1. Located along the proposed Great Eastern bypass and neighboring the aerotropolis. 2. Next to the Banda Resorts & Getaway. 3. Neighboring other proposed big metro cities. 4. Only 4.5km from Nyeri highway at Makuyu sub - station. 5. Well drained red soil and murrum ideal for any immediate developments. 6. 30 min drive from Thika town along Garissa highway. 7. Cool breeze with panoramic faunta & flora experience. 8. Title deeds in 3 months upon completion.

NAIROBI OFFICE RIVER ROAD & RONALD NGALA JUNCTION ABOVE FAMILY BANK

NAKURU OFFICE KENYATTA AVENUE, SHOPPERS PARADISE 3RD FLOOR ROOM 8, OPP EQUITY BANK

www.urithihousing .co.ke p.o. Box 6485 - 01000,Thika. Email: info@urithihousing.co.ke 4

NOVEMBER / DECEMBER 2014 BIASHARA LEO

Articulate MKU ONLINE LEARNING TIMELY congratulate MKU for its virtual campus. Indeed this is the right way to go especially considering that most Kenyans are employed and lack time to go back to school. I was surprised to learn of a Chinese student studying while in China via the online model. Thanks BL magazine for running the story. What an eye opener!

Joel Onyango, s t u d e n t , Mombasa

STORY ON CLAY HEATERS ENCOURAGING he story of a one Benedict Makau who uses clay heaters to keep his chicken warm was very encouraging. First this shows that the poultry keeper is innovative and cost conscious. Personally I have lost hundreds of chicks to the cold weather and I find his innovation timely. Young farmers in the country should emulate his efforts if they are to make profits out of their projects.

Antony Mwaura, farmer, Muranga

ORGANIC FARMING THE WAY TO GO t is encouraging to note that we can find organic products at supermarkets and retail markets. Indeed our eating habits especially the youth have contributed to many lifestyle diseases and efforts to help bring healthy foods in the Kenyan market must be appreciated.

Abel Mwasharo, businessman, Taita

WIN A FREE ANNUAL SUBSCRIPTION 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@asantemedia.co.ke 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.

NOVEMBER / DECEMBER 2014 BIASHARA LEO

8. Equity Bank

9. MTN

10. Save The Children 11. VAELL

12. MKU

Corporate News

MTN

MTN IS THE MOST VALUED BRAND IN AFRICA- BRAND AFRICA AWARDS

This year’s edition of the ranking, established in 2011, were held at the Nairobi Securities Exchange where Apple edged Samsung electronics as the most valuable non-African brand. Coca-Cola retained its position as the most admired non-African brand in Africa. Coca-Cola toppled Nokia as the overall most admired brand on the continent. The 2014 Brand Africa 100 is based on a survey among a representative sample of eight countries, covering the major subSaharan Africa regions to establish the best top 100 most admired brands. “While non-African brands understandably dominate African brands in value because of their sheer volumes that African brands remain competitive among the most admired brands bodes well for the future of African brands,” said Thebe Ikalafeng, founder and chairman of Brand Africa.

TN has been voted the most valued brand in this year’s edition of Brand Africa 100 ranking.

The top team of Equity Bank during the recent Extra-ordinary General Meeting.

EQUITY IN RACE TO AVOID CAPITAL GAINS ON TAX TRANSFERS

quity Bank is racing against time to complete the sale of its stake in mortgage firm Housing Finance (HF) and the transfer of its business to a holding company by the end of the year to avoid paying billions of shillings in capital gains tax. The tax which is set to become applicable beginning January 1, could scuttle the HF deal, the bank’s chairman has warned. The urgency to beat the tax date emerged recently when Equity Bank held an extraordinary general meeting (EGM) in Nairobi seeking shareholders’ nod to create a holding company to oversee all the subsidiary’s operations. Gains made on the transfer of property and shares will attract a tax of five per cent, making the two transactions by Equity Bank subject to a potentially huge tax liability. “We are not sure whether the holding company transaction will be subjected to capital gains tax since it is not a sale but an internal transfer of shares and assets,” Mary Wangari, Equity Bank’s company secretary told investors at the EGM.

“However, there is certainty when it comes to the Housing Finance deal. It is for this reason that we are keen on concluding the two deals by December 31st to avoid being subjected to the tax,” she added. Equity is awaiting Central Bank of Kenya and the Capital Markets Authority approvals to sell a 24.7 per cent stake that it holds in HF to Britam for an estimated Kshs. 2.2 billion, having already received the competition watchdog’s approval. The lender also wants to transfer 29.9 million shares of Equity Bank Kenya Limited (a new subsidiary) and assets valued at approximately Kshs. 38 billion to Equity Bank Limited to be managed under a new holding company, Equity Group Holdings Limited. The capital gains tax will be applied on the difference between the transfer price, less expenses associated with the transaction (like commissions and other fees), and the adjusted cost of acquisition. Equity is not certain whether the transfer of assets and shares to its new subsidiary is subject to the tax, exemplifying complaints by some stakeholders that there are many grey areas on how the law will be applied.

The lender says the sale of 57.27 million ordinary HF shares to Britam is however straightforward, adding that subject to regulatory approvals, the transaction will be completed within the set time frame. The HF share sale will see Equity Bank comply with Central Bank’s regulations discouraging banks from having strong control on other financial institutions which are not their subsidiaries. The lender says that if the formation of a holding company is not completed by December 31, it will apply for an exemption from Treasury Secretary Henry Rotich from paying the capital gains tax. “There is considerable uncertainty as to whether such a waiver can be obtained and how long such an approval may take,” said Peter Munga, Equity’s chairman, in a circular to investors. “In the absence of such a waiver, your Board may elect not to proceed with the transfer of the banking net assets to Equity Bank Kenya Limited as the incremental tax costs may exceed the potential benefits.” The Finance Act of 2012 provided that special entities created by banks could own over 25 per cent of their share capital, allowing the lenders to reorganise their shareholding structures and spread risks associated with subsidiaries and associated companies.

NOVEMBER / DECEMBER 2014 BIASHARA LEO

South Africa, with 11 of the 23 African brands, remains the most dominant branding nation, accounting for 91 per cent of the value of the brands.

The survey ranks the most admired and most valuable brands in sub-Saharan Africa.

Kenya and Nigeria at five and three per cent respectively round off the top three which make up 99 per cent of the value of African brands.

The ranking, which measures and ranks the brands that consumers admire and their corresponding value, valued the pan-African telcom giant at Ksh487 billion.

The most admired African countries mentioned spontaneously by Africans in the survey were Nigeria, Kenya, and South Africa.

OUR SERVICES We offer the following services: • Partitioning • Ceiling works • Tiling works • Masonry works • Painting & Decorations/Special effects • Plumbing • Electrical works • Joinery works • General maintenance services and renovations. • Home furniture and office furniture.

OTOMS ENTERPRISES LTD Physical address: Railway Godown shed 9 office No. 4 next to Kenya polytechnic university Postal Address: P.O Box 10210-00200, Nairobi, Kenya E-mail: otomsltd@gmail.com Cell: Tel:+2540720796200, +254722839199.

Save The Children

VAELL

Youth participate in the Postbank/Save The Children conference in Nairobi.

VAELL team celebrates after clinching the runners up position in the TOP100 SMEs awards.

FINANCIAL SERVICES PLAYERS SEEK WAYS OF BANKING KENYA’S ADOLESCENTS Multi-stakeholder conference follows successful project that identified a significant need for education and savings services within this largely untapped demographic

ave the Children, an independent charity for children in need, has hosted a one-day conference bringing together financial services stakeholders from the private and public sector to discuss the need and possibilities for bringing Kenya’s adolescent youth into the fold of the banked. Research shows that helping teens save money improves the way they feel about themselves and their future, as well as education – and health-related outcomes. The conference comes as the highlight to a four-year project that saw the international organization partner with Postbank and Kenya Institute of Public Policy Research and Analysis (KIPPRA) in developing, launching and gauging the uptake of a tailored savings product, as part of an initiative to empower youth worldwide to embrace smart savings and wealth creation. The project saw over 85,000 adolescent youth access formal banking services,

accumulating a total net savings of approximately KShs 17 million over one year. Market research shows that, contrary to popular belief, most teens – even low – income teens – receive most of this money from their parents and families. In addition to the structured savings product, an estimated 14,000 youth accessed training on finance. A total of 489 savings clubs were formed during this period and youth introduced to various avenues of wealth creation. With the government’s current focus on empowering youth on various fronts, and the Vision 2030 aspiration to raise national savings from 17% to 30%, the opportunity presented by the largely unbanked youth population in Kenya is perhaps the “latest frontier” that will give impetus to the concerted drive to deliver economically empowered youth. Save the Children Country Director, Duncan Harvey says today’s conference offers a platform for the different stakeholders

to synergize and determine a direction towards expanding access to financial education and products. “While the project undertaken by the YouthSave Kenya consortium was the first of its kind, we believe that the insights gathered give credence to a largely untapped opportunity that if explored, will change the lives of millions of young people”, he says. “By bringing more adolescent youth into the fold of the banked, we will be setting off on a journey that is bound to have positive repercussions on their future”, he says. Today’s conference also provides a platform for policy makers to critically assess the future of youth savings in Kenya. While recent advancements in technology have revolutionized banking and narrowed the gap between the unbanked and banked populations, there still exists a gap in the legislative framework and school curriculum that if addressed, would have a resounding impact in growing uptake of banking services. A recent study by Consumer Insight revealed that Kenyan youth between the ages of 12 and 25 spend up to KShs 250billion annually. While majority access the money from their parents, many are increasingly earning money through odd jobs and informal businesses. Savings is not considered a priority, a fact that could be attributed to lack of information, or limited access to banking services.

NOVEMBER / DECEMBER 2014 BIASHARA LEO

VAELL EMERGES SECOND IN TOP100 SMEs SURVEY

ehicle and Equipment Leasing firm (VAELL) emerged second during the Top100 SMEs Survey sponsored by Business Daily and consultancy firm KPMG, marking a successful journey that started almost a decade ago. Vaell started from the belief that you don’t have to own an asset, you can lease it. The company has now grown to become a powerhouse in the region targeting both corporate and government agencies that lease excavators, tippers, wheel loaders, breakers, graders, drills and compressors. Its clients include Haco, Telkom Kenya, Coca-Cola, ARM Cement, BAT, and Bamburi among others. “Vaell is an independent asset leasing, maintenance and consulting company. We have a comprehensive network with fullyledged subsidiaries in five countries; Kenya, Uganda, Tanzania, Rwanda and Zambia and plans are underway to venture into 30 African countries by 2018,” said Mike Mulili, the managing director of Vaell.

NOVEMBER / DECEMBER

He says the desire to enter into business was inspired by the need to shift from ownership of assets to acquiring equipment through leasing, a move that has since been widely adopted in developed countries. “We started off in Kenya. Then expanded our operations in four other African countries that include Uganda, Rwanda, Zambia and Tanzania to meet demands from both multinational and local clients venturing into new areas,” said the company without disclosing the initial capital. Vaell started with 10 employees and has since grown its workforce to 50. No company rides to the success path without facing challenges. Mr Mulili says lack of awareness about the benefits of leasing and competition from commercial banks are some of their challenges. “There is lack of awareness about the benefits of leasing, but the industry is now gaining traction. The recent move by the government to adopt leasing has opened more avenues for private investors,” the company said.

2014 BIASHARA LEO

The company leases equipment from three to 10 years. Companies need to show their audited accounts, a track record, profile, survey, business plan and projected growth before leasing the equipment. Leased vehicles and machines come with insurance and maintenance, but the customer buys the fuel. The company leases to countries through cross-border leasing. The ownership of the assets is assigned in those countries, but rentals come from their five regional offices. Vaell has started designing leasing solutions for the regional market. “We recently launched a sell and lease back solution early this year and so far we have an overwhelming demand from our clients that will allow availability of our product to more customers and help expand our growth,” it. The company is also targeting counties. It has organised leasing conferences to encourage counties to lease vehicles, machines and equipment instead of buying. In July this year, the firm won a Sh350 million deal to hire out machinery to a consortium of Tanzanian mining firms. Mr Mulili advises budding entrepreneurs to dream big and stay focused.

University

Mount Kenya

Regulatory body accredits MKU to train Nutritionists and Dieticians Kenya Nutritionists & Dieticians Institute gives full accreditation for certificate, Diploma and Degree programmes NEW UNIVERSITY APPOINTMENTS

Mount Kenya

JANUARY 2015 INTAKE Programme

Entry Requirements

Bachelors of Science in Nutrition and Dietetics

KCSE mean grade C+, and C+ in Mathematics/Physics/Biology and English/Kiswahili.Or Diploma in Nutrition and Dietetics, or Food Science and Nutrition from an institution recognized by the university senate and KNDI

Prof. Peter Wanderi

Director, Quality Assurance, Linkages and Partnerships

He was an Associate Professor and Director, University - Industry Partnership at Kenyatta University. He has over 22 years of teaching experience at the university in the areas of Sport Anthropology, Exercise Physiology, and Pedagogy of Physical Education and Sports.

Ms. Emily Wahome , Head of Department, Nutrition and Dietetics, displays the certificate confirming the university’s accreditation by the Kenya Nutritionists and Dieticians Institute.

ount Kenya University has received full accreditation by the Kenya Nutritionists and Dieticians Institute (KNDI) to train nutritionists and dieticians. The accreditation builds on the interim licence issued by KNDI in- 2011.

grammes in Nutrition and Dietetics. The training of Nutritionists and Dieticians is supported by the state of art infrastructural investment on facilities such as well-equipped specialised nutrition laboratories and technicians, lecturers and clinical instructors to facilitate learning in theory and practical based subjects.

Diploma in Nutrition and Dietetics

Nutrition and Dietetics John Murage,

Message from KNDI Chairperson

Dr, Julia Ojiambo, Chairperson, KNDI The university’s department of Nutrition and Dietetics scored highly in all areas of inspection, notably Educators, Facilities and equipment, Standards related to clinical practice, and

Standards related to the curriculum. KNDI is determined to ensure that all graduates are competitive and will address challenges relating to Nutrition and Dietetics.

Dr S. Chandrasekhar

Duration 8 semesters (Direct entry)

Fees Ksh.65,000 per semester

6 semesters Ksh.60,000 per (Diploma entry) semester)

KCSE mean grade C Plain and C in English/Kiswahili, Biology, Chemistry and Physics. Or Diploma in Nutrition and Dietetics, or Food Science and Nutrition from an institution recognized by the university senate and KNDI

9 trimesters

Ksh. 32,500 per trimester

KCSE mean grade C- (minus) and C- (minus) in English/ Kiswahili, Biology, Chemistry and Physics. Additional minimum grades shall be D+ (plus) in any of the following subjects: Physics, Mathematics, Homescience, Agriculture and General Science.

9 trimesters

Ksh. 32,500 per trimester

Application Procedure

Library Advisor The former senior assistant Commission Secretary at the Commission for University Education (CUE), Mr. Murage brings a wealth of experience, having worked at CUE for more than 20 years. He has also previously worked at Kenyatta University.

University

Apply to the Registrar, Academic Affairs enclosing copies of relevant academic/ Application fee of Ksh. 1,000 to be deposited at either:Equity Bank – 0090292435067 GT Bank – 2014200002 Family Bank – 005000019336 Standard Chartered -0102049817400 KCB – 1121032222 Co-operative Bank – 01129279981300 NIC Bank - 21200008796 NB: ■ Statutory fees of Kshs. 8,000 payable only once on registration for new students only. Application forms can be downloaded online by visiting our website www.mku.ac.ke. They are also available at any of our campuses or centres.

Lecturer, School of Pharmacy

He holds a master of Pharmacy degree from Banaras Hindu University India and a Bachelor of Pharmacy from the same institution

- Prof. Stanley Waudo, PhD Vice-Chancellor, Mount Kenya University

www.mku.ac.ke

Mount Kenya University

Scaling the heights of Education PO Box 342-01000, THIKA Tel: + 254 020-2338143/2088310/ 0720-790796 Email : info@mku.ac.ke

@Mountkenyauni

14. Liberty Life Kenya

16. Kenya Re

20. Kenya Women Holding 22. Crown Paints

Standing Out

Own Your Asset For Business Growth Among the benefits are:

Fast loan processing Competitive interest rates Finance available for all vehicles Flexible repayment term tailored to suit your cash flow Low deposits for newer vehicles Available for non customers Full ownership of the asset throughout the loan term

Minimum requirements:

Bank statements for past six months Proforma Invoice from the dealer Open an account with Remu Microfinance Bank Evidence of business performance and projections LIBERTY LIFE KENYA LAUNCH : L-R; Liberty Group chief executive officer Thabo Dloti, Liberty Group chairman Saki Macozoma, Liberty Life managing director Abel Munda taking a toast during the colourful event.

LIBERTY LIFE: FRESH OUTLOOK, HIGHER GOALS CfC Life rebrands to Liberty Life Kenya as it embarks on an ambitious journey of becoming a top player in life insurance locally By George Gichuki

n the recent past, market trends in the insurance industry have been significantly characterized by mergers and acquisitions as well as high profile rebranding exercises as players in the competitive industry strive to increase their market shares and profitability. It is against that background that CfC Life has rebranded to Liberty Life Kenya. Underlying this key development is the organization’s ambitious goal to become one of the country’s top three life insurers in five years. This is a culmination of a journey which started in 2011 when the Pan-African financial services group – Liberty Holdingsgained entry into the Kenyan market by becoming a strategic investor in CfC Life and Heritage Insurance.

Brand strategy

“This is a landmark development for us. It not only aligns us with the branding strategy for the rest of the Liberty Group in Africa but also provides clarity in brand

communication and removes any extant confusion with legacy brands,” Abel Munda, the managing director of Liberty Life Kenya commented on the rebrand. “This transition positions Liberty Life Kenya as a unique insurance services brand with its own identity, thus allowing us to focus on serving our customers from a clearly differentiated position as we seek to be among the top three life insurers in Kenya by 2020,” he added. In the same regard, Stuart Wenman, the chief executive officer at Liberty Africa, South Africa lauded the strategic move, saying the market was integral to the firm’s ambitions on the continent. “This development marks the full integration of Liberty Life Kenya into our continental business. It creates a single platform for us across the continent for innovation and institutional support as we seek to deepen insurance penetration and a savings culture as a catalyst for overall socio-economic development,” he said.

We also have:

Insurance premium finance (IPF)

SAVING PRODUCTS

According to figures from the industry’s umbrella body, Association of Kenya Insurers (AKI), the company’s gross written premiums in 2013 were valued at Kshs.3.40 billion, representing a market share of eight per cent. In total, Kenya’s 22 life insurers underwrote business worth Kshs. 44 billion in premiums in the said year with the bulk of the business coming from the retail ( Kshs. 16.65 billion) and pension (Sh16.23 billion) segments. Premiums from group life policies stood at Kshs. 11.12 billion.

Taratibu Savings Account Remu Fixed Deposit Account Jipange - Budget Savings Account Kikundi Dhabiti - Group savings accounts Darubini - Student Account Lil’ Angel - Junior Savings Account

LOAN PRODUCTS

Liberty Holdings

Liberty Holdings is one of the largest wealth management groups in Africa with operations in 15 African countries. The group specializes in life insurance, asset management, retirement and investment planning, property management and development as well as health administration. Liberty is 54% owned by Standard Bank Group, the largest financial services group in Africa which also incorporates a bancassurance arrangement unique in value and access to customers. The group, through Liberty Kenya Holdings Limited, a company that is listed on the Nairobi Securities Exchange, owns Liberty Life Kenya, Heritage Insurance companies and STANLIB Kenya.

NOVEMBER / DECEMBER 2014 BIASHARA LEO

Kimathi House Branch, Nairobi Coming Soon Head Office / Nairobi Branch 14th floor, Finance House, Loita Street, P.o. Box 20833 00100 Nairobi Tel: +254 20 2214483, 2215387/8 Mobile: 0733 554 555 Email: info@remultd.co.ke businessdevelopment@remultd.co.ke

Biashara pamoja - Group Business Loans Workplace Group Personal Loans Remu LPO Solution Remu Working Capital Remu Asset Financing Boostika Personal Loans

Deposit using REMU Fast Pay through paybill No. 95 33 00

Meru Branch Tom Mboya Street P.O. Box 586 - 60200, Meru Tel: 064 - 32760/1/2/3 Mobile: 0737 - 553555 Email: Info.meru@remultd.co.ke

Maua Unit P.O. Box 239-60600 Maua Tel: 064 - 21000 Cell: 0737 554 557 Email: Info.maua@remultd.co.ke

www.remultd.co.ke NOVEMBER / DECEMBER

2014 BIASHARA LEO

Re-Insurance

period, Kenya Re recorded an investment portfolio of Kshs. 23. 9 billion, a 19 per cent increase. Net earned premiums also went up from Kshs. 7 billion in 2012 to Kshs. 8.5 billion in 2013, an improvement of 22 per cent.

insurance which targets small and medium enterprises (SMEs). In addition, with the continued growth of the oil and gas sector in the country ( as evidenced in the recent discovery of oil in Turkana) , the state reinsurer has launched the oil and gas re insurance product.

The revitalized Corporation has also expanded from a local state entity to a huge re insurer with a continental footprint, now present in over 62 countries and covering over 265 insurance companies in Africa, Middle East and Asia. Mr. Jadiah Mwarania, the Managing Director of Kenya Re attributes this transformation to the continuous review of the Corporation’s strategy in the recent past. This was preceded by a well executed rebranding exercise which gave the Corporation a new lease of life. “Rebranding has helped change people’s perception of the company and enhanced our corporate and business worthiness,” he says. Mr. Mwarania, a career underwriter with a wealth of experience spanning more than 20 years in the insurance industry has seen the giant firm become a vibrant commercial entity which can comfortably sustain itself. When he became the organization’s Chief Executive Officer four years ago, he realized the brand was out of touch with the stakeholders and clients, besides lacking the life and thrust of a commercial outfit.

Kenya Re Managing Director Jadiah Mwarania is assisted by two students to water a seedling during the Corporation’s annual tree planting day held at the Kibiku Secondary School on 5th August 2014 where one thousand tree seedlings were planted.

HOW KENYA RE TRANSFORMED INTO A CONTINENTAL BRAND With a footprint in 62 countries and already working with more than 265 insurance firms, state insurer is soaring to greater heights

ince rebranding in 2012, Kenya Re has seen its fortunes in the reinsurance industry rise within a relatively short period of time. The state reinsurer has posted soaring profits running into billions of shillings over the last few years. Couple this with a meteoric rise in shares, a growing asset base and high dividend payout to complete an impressive picture of a company on a roadmap to greatness.

According to the Corporation’s recently released 2013 financial report, it recorded an impressive 7 per cent growth in full year profits and 50 per cent dividend payout totaling Kshs. 420 million. The report indicates that the Corporation made Kshs.3 billion in net profit, up from the previous year’s Kshs. 2.8 billion. The company’s gross premiums grew by 21 per cent from Kshs. 7.9 billion in 2012 to Kshs. 9. 6 billion in 2013. In the same 16

“The first step was to re fresh the brand. We conducted a fact finding mission that incorporated all stakeholders including the management, clients and other business associates. From the survey, we realized that the Corporation was non vibrant. We had to change this perception and establish a footing by rebranding, a process that involved changing of internal systems to enhance efficiency, a change of the company logo, corporate colours as well as our culture,” explains Mr. Mwarania.

The firm also works in oil rich countries like South Sudan where it covers the risks involved in oil exploitation. It has also launched political and terrorism risk covers in the face of insecurity and political violence in the country and the continent at large.

The Kenya Re Niko Fiti Team is joined by some beneficiaries in delivering the Niko Fiti slogan after the distribution at Mikinduri District Hospital during the 2nd caravan that toured the central and Mt. Kenya region from 6th to 10th October 2014 where 677 devices were distributed. buildings bring the firm close to Kshs. 650 million a year.

shareholder of the Corporation with a 60 per cent stake.

“We work hard to ensure that the occupancy of our premises is close to 100 per cent,” says Mr. Mwarania.

And it is this business that forms the bulk of its operations. In Kenya, the organization works with all the 47 licensed insurance companies and is currently serving 19 of the 25 insurance firms in Uganda.

The other source of income is dividend interest. The firm has continued to perform well in the Nairobi Securities Exchange and its shares boast of handsome dividend payments. The reinsurance business is lucrative and rakes in billions in profits year after year. For instance, from the recent financial results, the National Treasury earned Kshs. 252 million as dividend payout, as the government remains the majority

Mr. Mwarania says that the Corporation is still expanding to other emerging markets in the continent and beyond.

New products

Mr. Mwarania attributes this growth to constant product innovation. Just recently, the firm rolled out innovative products that are currently setting the pace in the re insurance industry. Among them is micro re

It is through such innovations that the Corporation has remained a pace setter amid massive competition. Currently in Kenya, seven other re-insurers are also competing for a share of the market. For Mr. Mwarania, a corporate leader, the continued growth and thrift of the company can be traced back to its unique strategies. Kenya Re is on a steady path of growth which has seen it establish an international footprint. “It takes setting of clear growth plans that will enable us meet our financial targets, and the right set of people as well as efficient internal systems to achieve success,” says Mr. Mwarania.

Despite this transformation, Mr. Mwarania says that the Corporation’s challenge is to keep the brand alive and strong, a feat that requires constant strengthening of the internal operations to handle the growing business. Since rebranding, the company that was initially dealing with treaties and policies has changed tact to concentrate more on treaties.

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“We see this as a huge opportunity as the Retakaful business is worth Kshs.778 billion worldwide. It is projected to grow to Kshs.2 trillion by 2015. In Kenya, the Muslim population is substantial and growing.“The launch of this window will facilitate strengthening of Retakaful capacity in Kenya and other markets,” says Mr. Mwarania.

Growth plans

Growing business

Kenya Re has various sources of income that sustain its operations. One of them is real estate. The Corporation owns four commercial buildings that include Reinsurance Plaza, Kenya Re Towers, Anniversary towers and Kisumu’s Reinsurance Plaza. Collectively, the

Last year, the company launched the Retakaful window, a Shariah compliant product targeting the Muslim community. The Corporation boasts of a fully functional Shariah board made up of highly placed religious leaders. It is also fully compliant to offer the service considering that it has opened a separate bank account in a Sharia compliant bank, among other requirements.

Kenya Re Chairman Mrs. Nelius Kariuki (2nd R) is joined by her four ball team during the Corporation’s Corporate Golf Day that was held at the Karen Country Club on 3rd October 2014.

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Given its exemplary performance and massive transformation, the Corporation has received accolades from far and wide. International credit rating agencies including A.M Best and Global Credit Rating (GCR) have bestowed the Corporation B+ and AA for domestic claims paying ability, again attesting to the re-insurer’s financial strength.

Re-Insurance

In addition, the Corporation became a shareholder of the African Trade Insurance Agency (ATI), an Export Credit Agency in August this year where the reinsurer paid and subscribed to 10 shares valued at Ksh 87.5 million. By virtue of their respective continental presence and business networks Kenya Re will increase its geographical and business penetration in the insurance industry across the continent. The investment came in the wake of growing international interest in Africa with initiatives such as the recent US Africa summit that saw the US commit to $33 billion in investments in Africa. This is expected to result in greater demand for investment and trade insurance as the volumes of projects and transactions are likely to spike.

all actions, besides being visionary and strategic and remaining cautious of any legal requirement, “he says. At the moment, Mr. Mwarania is grooming three senior staff members for succession, in line with the Corporation’s wellstructured plans. The general managers, who at times become managing directors, are comprehensively vetted. As the serving managing director, Mr. Mwarania is expected to coach and mentor at least two people from within the Corporation.

Challenges

Competition is part of the Corporation’s main challenge, but thanks to its constant innovation and re-engineering, it has

awareness creation) and the Association for the Physically Disabled of Kenya (APDK). The association identifies , assesses and mobilizes the people to benefit from assistive devices nationally, besides fabricating them. Kenya Re on the other hand plays the critical role of financing and overseeing implementation of the campaign. This year, the campaign is focusing on high incidence areas countrywide. The first caravan covered Kisii, Kisumu and Busia counties and 485 devices were distributed. The second caravan covered Murang’a, Nyeri, Embu, Meru and Isiolo counties where 677 devices were distributed. This is a major improvement on last year’s caravans where700 devices were distributed in three caravans that traversed Mount Kenya, Meru, Embu, Upper Eastern, Nyanza, Western, Rift Valley, Lower Eastern and Coastal regions. “The campaign has rekindled hope and enhanced productivity of over 2000 Kenyans from different counties,” says Mr. Mwarania. Due to its positive impact on the lives of needy members of our society, ‘Niko Fiti’ won the best CSR award by the Public Relations Society of Kenya ( PRSK) in 2013 and the Corporate Leadership Award by the Annual Disability Advocacy Rights Awards (ADARA) organization in 2014.

Road ahead

In the next two to five years, Kenya Re is planning to become a key player in the market especially in the area of treaties, according to the Corporation’s chief executive. Guests and staff members mingle during the Kenya Re market cocktail that was held to thank the Insurance Industry for business support on 22nd October 2014 at the Serena Hotel.

Moreover, to keep the company’s vision in line with its goals, the Corporation reviews its strategic plans every year. Mr. Mwarania says that he holds regular meetings with his management team to set and review goals, a move that has borne fruits as the Corporation moves towards playing in the international league. “Even in my absence, the company’s shared vision will enable it to continue flawlessly. I always give people space to perform especially when targets are clear,” he shares, adding that his leadership style is democratic. “Gone are the authoritarian days when leaders imposed laws and policies without consultation. A modern leader has to be accountable and take responsibility for

managed to retain its leadership in the market. Global terrorism has also significantly increased the number of claims which the re-insurer has to process and this has eaten into its bottom line.

Making a difference

Kenya Re stands out in the execution of Corporate Social Responsibility (CSR) programmes. Its flagship campaign– ‘Niko Fiti’ Ability beyond Disability - has been running since 2011 and aims at promoting independence, ease of mobility and accessibility for persons with disabilities through the provision of assistive devices. It also aims at de-stigmatizing disability in the society. Kenya Re conducts the campaign in partnership with the Standard Media Group (media partner for communication and

“We also want to grow and sustain a 20 per cent growth every year as we set our sights on venturing into the emerging markets,” he adds. Plans are also underway to increase the organization’s footprint in Africa by setting up offices in either Zambia, Zimbabwe, Botswana or Mozambique to cater for the growing Southern Africa market. Moreover, plans to construct an ultra modern 22 storey building in Upper hill area of Nairobi are in the pipeline. He says the building will be set on a 1.6acre piece of land and will increase Kenya Re’s total area for letting to 568, 292 square feet. “We are firmly on course to make Kenya Re a truly pan African reinsurance brand. We want to remain the pacesetters in this industry and the ground has been set in line with our slogan STRENGTH & WISDOM BEYOND BORDERS.’’ ends a resolute Mr. Mwarania.

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JANUARY 2015 INTAKE

CORPORATE EVENT

KENYA WOMEN HOLDING FOURTH ANNUAL CHARITY DINNER Philanthropic organization touches the lives of bright but economically disadvantaged girls by supporting their high school education

KENYA WOMEN GROUP ASPIRATIONS

. Nurture young girls to achieve their dreams and empower them as future leaders. . Have a target of educating one million girls and create a yearly pool of mentors from all the forty seven counties in Kenya. . Leverage on the goodwill of individuals, organizations and development partners in support of the empowerment of young women as future leaders.

By George Gichuki

our years ago, Dr. Jennifer Riria, the group chief executive officer of Kenya Women Holding visited the Mai Mahiu camp for the internally displaced people. The deplorable conditions of the poor citizens who had fled their homesteads as a result of the 2007 – 08 post election violence and were now ¬-residing in tents and other make shift structures at the infamous camp caught the attention of the renowned microfinance guru. She almost shed tears as she watched young boys and girls, the youth as well as old men and women sharing hovels in total disregard of proper cultural and hygiene standards. Moreover, to her utter disappointment, she got wind of cases of a number of innocent women and young girls falling prey to sex pests in the heavily congested camp. Taking action True to her character, rather than sitting back and watching the terrible situation deteriorating further, Dr. Riria decided to take some firm action. A distinguished scholar in her own right, the value of education as a tool of socio-economic transformation was quite clear to her. In that regard, she got two girls from the camp enrolled in high school and paid their fees in full.

Dr. Jennifer Riria, group CEO Kenya Women Holding receiving a donation towards the establishment of KWFT Education Fund from Mwangi Githaiga, MD, Kenya Women Microfinance Bank.

Juliana Wanjiru,GM marketing, Kenya Women Microfinance Bank with Mwangi Githaiga and Dr. Jennifer Riria during the fourth Kenya Women Holding annual charity dinner.

(L) Sharon Atieno (Loresho Primary) and Brenda langat (Buruburu Girls)beneficiaries of Capture The Future programme.

A cross section of guests in the fourth Kenya Women Holding annual charity

That gesture of benevolence saw the birth of Kenya Women Holding’s celebrated ‘Capture the Future ‘ programme. The noble initiative aims at radically transforming the lives of bright young girls from economically disadvantaged backgrounds by financing their high school education. To that end, the organization has been holding annual charity dinners to raise funds from well wishers (individuals and corporates) for the noble cause. Its objective is to support one girl from each of the forty seven counties in Kenya every year. “This is part of our commitment to empower, position and advocate for women’s rights in Kenya by securing their future through education,” says Dr. Riria. “We shall not stop until we have successfully taken one million girls through their high school education,” she adds. To date, the staff of Kenya Women Group (which comprise Kenya Women Holding, Kenya Women Microfinance Bank (KWFT) and Kenya Women Microfinance Insurance Agency) together with likeminded partners from the private sector have contributed generously towards the programme.

2014 Event

This year’s event was a huge success. True to the adage that charity begins at home, staff members from KWFT set the pace by donating Kshs. 13,119,250 as the seed money for the establishment of KWFT Education Fund. The colourful occasion was also attended by other corporate partners of the programme like AAR Insurance and Atlas Copco who made commitments to continue supporting it. Clearly, the audacious seed which Dr. Riria memorably planted four years ago after germinating has now led to the formation of a huge forest whose canopy is benefiting bright girls and their respective families countrywide.

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dinner.

PUBLIC ANNOUNCEMENT

COYA Awards

Equity Bank Limited (Incorporated in Kenya on 21 December 2004 under the Companies Act (CAP.486)) Company Number C.4/2005 The Capital Markets Act. Chapter 485A of the Laws of Kenya. Regulation 19(2) of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002

Results of the Extra-ordinary General Meeting of Equity Bank Limited held on 24th November, 2014 Further to the public announcement issued on 30th October, 2014, Equity Bank Limited (the “Company”) is pleased to announce for information of its shareholders and the general public the results of the Extra-ordinary General Meeting held on 24th November, 2014 (the “EGM”). At the EGM, the shareholders of the Company passed the following resolutions:

ORDINARY RESOLUTIONS: Incorporation of a Subsidiary

THAT, the incorporation of Equity Bank (Kenya) Limited as a wholly-owned subsidiary of the Company, be ratified and the Company be authorised to acquire additional 29,999,900 shares in the share capital of Equity Bank (Kenya) Limited.

Mr. Rakesh Rao, Crown Paints Kenya chief executive officer.

CROWN PAINTS SCOOPS COVETED COYA AWARDS

rown Paints and Cube Movers are the new winners of this year’s Company of the Year Award (Coya) and Small and Medium Enterprise of the Year Award (Smoya), respectively. The two bagged three awards each during a ceremony held at Safari Park Hotel on Friday to underscore exemplary business practices. Crown Paints Kenya chief executive officer, Mr Rakesh Rao, was also named CEO of the year. The theme of the event was business excellence for global competitiveness. “In the modern world, you either aspire to face competition by establishing sound systems, or you sit back and are edged out by the competition, mainly global firms that are expanding,” Kenya Institute of Management boss David Muturi said. Kenya Institute of Management is the brainchild of Coya and Smoya, and uses an assessment tool – organisational performance index (OPI) – to rate the performance of businesses on a scale of 1 to 10, with 10 as the highest score.

The key objective is to assess the performance of companies in certain areas for purposes of benchmarking them against global business metrics so as to boost competitiveness and excellence. Crown Paints and Cube Movers were also winners in the leadership and management category, as well as in productivity and quality sections of their respective categories (Coya and Smoya). Jubilee Insurance bagged two awards in human resource management and financial management for maintaining a leadership role in the face of stiff competition. The insurer’s head of human resource department, Mrs Emily Kamunde, scoped the manager of the year award. The award was introduced in memory of Kirit Dave, a renowned entrepreneur and industrialist. Last year’s winner of Coya, Britam, took home the customer orientation and marketing award. This was the 15th edition of the annual awards ceremony that was launched

Transfer of banking business

in 2000 with a view of enhancing organisation’s management capabilities and performance excellence.

THAT, the Company be authorised to transfer the banking business, assets and liabilities (excluding the excluded assets and liabilities) to Equity Bank (Kenya) Limited subject to obtaining all required regulatory and tax approvals and/or exemptions in terms acceptable to the Directors.

There were a total of 11 awards in the Coya category and nine in Smoya.

SPECIAL RESOLUTIONS:

Speaking at the event, chief guest and Deputy President William Ruto said the survey should be introduced in the public sector to spur excellent business practices. “We actually need such a survey both at national and county government level,” Mr Ruto said in a speech read by Mr Joseph Tiampati, the Principal Secretary in the Ministry of Information, Communications and Technology. Kenyatta National Hospital and Northern Water Services Board received the judges’ awards under Coya. The award recognises organisations that have shown positive response to the assessment process. Other firm’s that were feted under Coya included County Provident Fund, Githunguri Dairies and Kenya Orient Insurance. Tropical Africa Brands, Pewin Cabs, Merubased Capital Sacco Ltd, and Metropolitan Hospital were also recognised under Smoya. The judges award under Smoya went to Imaarika Sacco, AAKI consultant architects and Mombasa-based Yehu microfinance trust.

Amendment to the Memorandum and Articles of Association

THAT, subject to completion of the transfer of the banking business, assets and liabilities (excluding the excluded assets and liabilities) occurring (“Completion”) the Memorandum of Association of the Company be amended with effect from Completion by deleting objects 4(1), 4(2), 4(3), 4(4), 4(5), 4(10) and 4(11); renumbering objects 4(47) and 4(48) as objects 4(2) and 4(3) respectively; inserting the following objects as objects 4(1) and 4(4) respectively; and renumbering the rest of the objects accordingly: – “To carry on the business of a non-operating holding company as defined under the Banking Act (Chapter 488, Laws of Kenya)” – “To co-ordinate the administration of and to provide advisory, administrative, management and other services in connection with the activities of any companies which are for the time being subsidiaries of the Company”

Change of Name

THAT, subject to Completion the change of the name of the Company from “Equity Bank Limited” to “Equity Group Holdings Limited” be approved and confirmed to take effect from the date of Completion. By order of the Board of Directors, Equity Bank Limited.

Mary Wangari Wamae Company Secretary

24th November, 2014 DISCLAIMER: This announcement is for information purposes only. It has been issued with the approval of the Capital Markets Authority pursuant to the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations 2002 as amended. As a matter of policy, the Capital Markets Authority and the Capital Markets Authority of Uganda assume no responsibility for the correctness of the statements appearing in this announcement.

Equity Centre, Hospital Road, Upper Hill, Tel: +254 763 026 000 Contact Centre +254 763 063 000, Email: info@equitybank.co.ke, www.ke.equitybankgroup.com @KeEquityBank KeEquityBank EQUITY BANK LIMITED is regulated by the Central Bank of Kenya.

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22. C4D Lab

The Techie

At C4D Lab we are involved in research, training on big data and analytics on cloud technology but most of all we have an incubation programme that has turned out to be a major achievement for us One of the most unique aspects of this programme is the ease of tapping into good talent within the university. Incubated startups are allowed to hire interns from the School of Computing and Informatics to help them with the technical bits of the startup. Once they are selected, participants get the opportunity to get trained by leading mentors who are entrepreneurs, venture capitalists, industry experts or scholars. The startups get necessary information from experts on how to manage a business. The lab also provides high quality training ranging from how to run a business to how to build scalable software and successfully roll it out into the market. The aspiring entrepreneurs also get skills in business.

which means frog. A frog usually leaps and for us the name was appropriate since we help mobile phone users’ move from one network to another,” said Stephanie Gaku the group’s fund and communication manager. The founders of Chura Ltd saw a need that they wanted to satisfy. They realized that many Kenyans used different networks for different purposes. “We decided to come up with ways to help mobile phone users to meet their needs from a single point in a fast and convenient way,” says the computer science graduate. “The airtime for cash service was created for users that had a lot of airtime and wanted to convert it to cash but had no avenue to

investors the company is yet to take any as they are at negotiation stage. Being in a group of five members Stephanie says that everyone has to put up with various opinions and personalities in the group. But the group counters this by discussion and voting. “We have had to put up with technological and logistical challenges. The culture of closing up technologies by network operators makes the situation worse but we have solved these problems through sacrifice and creativity,” the upcoming entrepreneur says. Stephanie discloses that growing up she did not know that she would one day become an entrepreneur. She faults the mentality among Kenyan youth that education is

“Participants undergo extensive training on their particular ideas that they present to us,” Omwansa says. Dr. Tonny Omwansa, a co-ordinator at C4D Lab.

HOW AN INCUBATION CENTRE IS MINTING YOUNG TECHPREPRENEURS Anthony Kiganda

recent government survey reveals that traffic jams are estimated to cost Nairobi $600,000 per day in lost productivity and wasted fuel. This translates to $219 million per year. While most cities which struggle with snarling traffic jams have effectively used technology to address this problem, Kenya still lags behind. But this is set to change. In Nairobi for instance, a technological innovation dubbed Twende Twende, which means “let’s go” in Kiswahili allows cell phone users to text the name of a street or intersection and receive an instant traffic report to enable them avoid congested streets. The upsurge of socio economic challenges has necessitated the need to

come up with creative ideas to counter such problems. One organization is helping fill the gap between innovation and reality. C4D Lab (Computing for Development) is an incubation centre housed at the University of Nairobi, Chiromo Campus. Dr Tonny Omwansa who has been the coordinator of the lab since its inception in late 2013, says the centre has been a success story in nurturing ideas. “This incubation centre was launched with the aim of supporting young people who have ideas but have no means to develop them into something viable,” explains Omwansa who is also a lecturer at the

University of Nairobi, School of Informatics and computing. “At C4D Lab we are involved in research, training on big data and analytics on cloud technology but most of all we have an incubation programme that has turned out to be a major achievement for us,” adds the computer expert. Not every idea is adopted at C4D Lab. Applicants who intend to be incubated undergo rigorous assessment before being offered a place in the centre. Early this year the programme only admitted 10 incubatees out of a total of 24 who had shown interest for the project. Those selected proved that their ideas were viable, had a computing element and were likely to solve real life problems. The prospective applicants could only be admitted if they developed and presented a preliminary business plan to the lab. “We accept ideas from everyone but students and alumni of University of Nairobi are given priority. Members must consist of two or three individuals and pay Ksh2,000 as a sign of commitment,” says Omwansa.

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The C4D Lab at the University of Nairobi is a conducive environment for learning. Additionally, fast internet is readily available at the institution. In November 2013, FarmDrive, one of the projects that are being incubated at the C4D Lab participated in the ICT4Ag Hackathon, a competition that had 20 projects. The incubation centre now has 10 startups namely: Throughpass, Chura LTD, Africa,Techxus Systems, RocKeSci, Creatix Systems, FarmDrive,Ideal Animations, NESBIT-COMP and Mobiworld ICT Solutions.

Nurturing Talent

One of the best ideas that are being supported by C4D Lab is Chura Ltd. This innovation helps mobile phone users to transfer mobile airtime across networks, buy airtime from any network using any mobile money transfer service and convert airtime to mobile money. Chura.com was an idea from a five-member group that graduated from the University of Nairobi. Stephanie Gaku,Samuel Njuguna, Njogu Kinyanjui, Jack Kinga and Byron Sitawa are the brains behind the innovation. “Our company is called Chura Ltd. The name is derived from a Kiswahili word

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Members of Chura Limited pose for a photo at the University of Nairobi. do this,” the 25 year old explains adding that at the time, users who bought airtime erroneously from their mobile money account could not have the transaction reversed.

How it works

To use their services a user needs to make the request online or through an SMS on the services they need. After receiving your request the client then sends mobile money or airtime to Chura Ltd which in turn sends it to your desired number depending on your request. A certain fee is charged for the services. Like any other starting business, Stephanie says that one of the major challenges they face is financial constraints considering that they fund the project from their pockets. Although they have positive interest from

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meant to help them secure white collar jobs. According to studies, thousands of university graduates in Kenya are jobless and most of them work in areas that are not linked to what they studied in their respective institutions of higher learning. Worse still, employers have raised concerns that most graduates have little practical skills necessary for the job market. The group projects enormous growth. Samuel Njuguna, a member of the group says that they are working on a number of avenues that will enhance their product’s accessibility and experience. Njuguna does not rule out plans of launching other products which he says are in the pipeline. The group urges the youth to stop waiting to be employed and instead be inventive and offer solutions to problems facing Kenyans.

24. Executive Profile

26. Young Voice

Executive Profile

Management & Opinion

successful and reliable online companies such as Jumia, Kaymu, Hellofood, EasyTaxi, Lamudi, Carmudi and Lendico. As the managing director for East and Southern Africa, Verdier’s job involves overseeing operations in 14 countries where she ensures that the company offers a strong hotel portfolio with the best rates, besides making the product adaptable to local tastes and preferences. For a lady who is passionate about what she does, it is not surprising to see her preside over her world with nothing less than zeal and an unending desire to achieve more in life. A vastly experienced executive, Verdier has lived in Kenya for the last five years, a place she calls her second home. In France where she hails from, she studied Political Sciences before pursuing two Masters degrees-in International Management and in Economics before landing a number of jobs at a very young age.

Estelle poses for a photo with one of her team members. “In the beginning our main challenge was that people had limited trust in online business, they always questioned if it was a real company or not fearing that it was a scam,” she says of her main challenge at inception, which she managed to overcome. By employing the best practices in online business, verdier and her team were able to put the required structures that made the firm a reputable business that could be trusted.

MEET ESTELLE, THE HIGH FLYING EXECUTIVE WHO LOVES TAEKWONDO Estelle Verdier has successfully demystified online business in Kenya. Originally from France, the youthful executive talked to Amos Wachira about building a reputable online company, her love for Taekwondo and her experience in Kenya.

t only 28 years, Estelle Verdier is on top of her game. She is the managing director of a fast growing online hotel booking company-Jovago.com, which has now signed over 11000 hotels in Africa. There is no denying that the youthful executive has achieved what many of her peers can only imagine.

In a span of one year, the company she heads has grown exponentially to expand to 14 countries, besides adding the number of hotels from just a few to over 11000 hotels in Africa. Besides, she is credited with launching Jovago.com in East Africa and growing the company from a staff population of one person to a team of 40. Her performance so far reads like a script from a success story.

Since the launch of Jovago in East Africa in June last year, she has seen the firm expand to Tanzania, Rwanda Uganda, Namibia, Botswana, Ethiopia, Rwanda and Zimbabwe. Besides, she has brokered partneships with a great number of hotels, transport companies, travel agents and other affiliates. Over the same period of time, Jovago has opened offices in Lagos, Nigeria, Dakar, Senegal, Abidjan in Ivory Coast and Pakistan. The company has also rolled out innovative products like the Corporate Loyalty Program while still redesigning and introducing a new customer interface. No one can deny that Verdier is a cut from unique linen. But behind the veil of her youthful charm is an ambitious, hands-on woman who is daring to diligently tackle every challenge on her way.

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She explains: “We developed our product in a way that our clients could easily trust us. Today, we are the website of choice for new bookings and have created a whole generation of satisfied customers who also bring us referrals.”

Soaring high

It is for this reason that the company she heads continues to soar form height to height. Verdier has seen her company add an average of 1000 hotels per month, a fete that further explains the company’s unbridled success.

Rising to the top

“I started my career as a junior analyst at Orange Headquarters in France,” she says of her humble beginnings. It is here that she acquired crucial skills in markets and analysis and development of new partnerships, skills that come in handy in her present post. As fate would have it, she was later posted to Kenya where she was promoted to a business product manager at Orange Telkom Kenya. A hardworking person, she would later join a startup company, Cellulant as a senior product manager where she was tasked with developing an innovative payment solution for the mobile payments company, a task that she managed to successfully execute. It is from Cellulant that she was recruited by Africa Internet Group to launch Jovago.com in East Africa.

Jovago.com is a web based platform that opens up thousands of hotels to millions of customers worldwide. It allows customers to book the hotels online.

Currently, she coordinates the four departments of the organization which are bent on hotel acquisitions, collection of information about hotels, revenue management and marketing, a task she describes as “a great experience”.

Jovago Africa is owned by Africa Internet Group, a leading internet group in Africa owned by Millicom, MTN and Rocket Internet which also operates a number of very

“I am learning a lot every day and I appreciate that the company and the employees are growing along the journey. It is a rewarding experience.”

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Africa focused platform

Jovago is currently the only online hotel booking platform which is focused on Africa. It offers a large choice of accommodation ranging from one star to five star hotels, from camping expeditions to serviced apartments, hotels and lodges in over 40 African countries. “We are making hotel bookings in Africa easier and cheaper. We also have a dedicated team whose main task is to negotiate rates for our clients.” Young and charged with ambition, she is now raring to make online hotel booking the next big thing in the country and beyond. “As a manager, always ask questions about your product. Always be aware of new developments in the market and recruit the best people to drive the company to the desired levels.”

Social life

Despite being technology savvy, the youthful executive has a trait that completely sets her apart from her peers. While at work, she toils hard and fast by avoiding social media platforms like Facebook, which she terms as a “distraction.” She treats her personal emails the same way. “I make use of every minute to ensure that in the evening I have some time with my husband, daughter and friends.” She advises young executives to always love what they do or change it. Asked about where she wants to be in future, she says that she hopes to be heading a successful and great team like Jovago. Verdier thus summarizes her life philosophy:”Life is short and we spend too much of our time at work. We should enjoy our work, enjoy life and be passionate about what we do.”

Verdier’s Diary

Arrives at the office at 8.00 a.m

Favorite sport: Taekwondo, which she has practiced for six years.

Favorite holiday destination: Countryside Current Car: Subaru Favorite book: La letter Perdue by Martin Hirsch

Best quote: “Stay hungry, stay foolish.”Steve Jobs.

Loves travelling.

Young Voice

INSIDE THE WORLD OF BUSINESS CONSULTANCY How consultancy helps businesses move forward

your business will be the sum total of the decisions made over the years. Granted, a wrong call is not a preserve of small enterprises - even big businesses make costly mistakes because it is never easy to interpret and predict the business environment. Consultants help businesses make better decisions by conducting research and drawing from experience learnt over the years. The term evidence based decision making should never become a cliché. It is a phrase with heavy implications. Consultants bring in an outside-inside look at the business and moderate extreme

By Ephraim Njega

A Little Understood World

hough business consultancy is much appreciated in developed countries, the same cannot be said for a country like Kenya. Many people (including business owners) do not understand the role business consultants play and how they can take advantage of them to move their businesses forward.

grave yard. Bright ideas are dimmed by incompetence and amount to nothing. Elaborate ambitions are reduced to mere statements laced with good intentions yet embroiled in perpetual barrenness.

time and does not have to necessarily train in it for from the onset. This is something that should always be borne in mind before engaging a consultant. Career business consultants are quacks.

Consultants provide a much needed reality check by offering independent, informed and objective input into decisions. They do not make decisions for entrepreneurs. On the contrary, they provide informed options from which the entrepreneur is to choose. Consultants provide sobriety amidst the hurry to decide. They offer a reasoned judgment and illumination in the heat of the moment.

A good business consultant will show serious effort in understanding a client’s business. In addition, he will insist on a participatory process whereby the client is fully engaged throughout the assignment. This ensures not just a deeper understanding of the outcome, but also enhances its ownership by the client. When clients feel a strong sense of ownership, they are more inclined to implement the consultant’s brief saving it from being consigned to dusty shelves , where it is likely to gather even more dust.

Based on my experience in this business, there are many occasions you snatch people from being consumed by the fire of misguided ambitions and unfettered passions.

The hefty cost of incompetence

Consultants do not come cheap. That is why many small enterprises avoid consulting in the name of cost cutting. Ultimately, they lose a lot of money. There is nothing more costly than an incompetent decision. A consultant may cost you a lot, but he may give you ideas that you will benefit from for many years to come. The outcome of consultancy thus can be likened to a gift that has long term benefits. It may be expensive to purchase but its value in the long run far outweighs that. Unfortunately, we are a country that likes shortcuts and short-circuiting the due process often with disastrous consequences.

Consultants provide a link between theory and practice. There are many things that are learnt in school but only fully manifested through practice. Having indulged in many years of study and research, consultants have a good grasp of the theory which is the fundamental upon which many business decisions and processes are anchored. Apart from that, consultants have dealt with many businesses and diverse situations providing them with a deep understanding of business not just as learnt but also as practised.

It is imperative that entrepreneurs appreciate the value of knowledge. A good education can never be fully valued and so is good consultancy. Its impact will continue to be felt long after the payment is forgotten.

Choosing the right consultant for your business

I can define business consultancy as provision of expert, objective, evidencebased advice to enterprises. Expertise is derived from training and practical experience. Ordinarily, the more advanced the training and the longer the experience, the better the expertise. Objectivity is largely tied to absence of conflict of interest. Evidence is all about research. No amount of training or experience can replace the need to conduct research on the subject upon which the advice is sought.

On the other hand, practice enriches theory because the world of business is dynamic and pervasive. There is no sense in spending years cracking a business challenge when an expansive body of research exists to provide actionable leads. It is often said that only a fool learns from his own mistake.

Theory versus Practice: Both are Important There are people who think that theory is superior to practice or vice versa but there is no truth in that. Theory is derived from research and also from practice. The power of theory in terms of informing practice can’t therefore be underestimated.

Business owners need to understand that as the scriptures say, there is nothing new under the sun. Your current challenges for instance have been faced before and overcome even though some may have succumbed to them. The outcome of those who faced the challenges before provides a

rich reservoir of wisdom from which to draw in tackling daily business challenges.

Role of consultants in business practice

The role of consultants is not to spoon-feed or babysit businesses but to empower them in making the best decisions that can place the business in a better position. I have deliberately avoided saying right decisions because people have come to accept that there are no right decisions (only the best apply) under the circumstances concerned. Decision making is the most critical job description for entrepreneurs. In the end,

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positions that an entrepreneur may take on the strength of uninformed, misguided passions and ambitions for the enterprise as opposed to sound information. Entrepreneurs are not always known for level headedness. An entrepreneur has a clear picture of the final product in terms of vision for the business but often a dim view of the intricate details. This lack of attention to details and the ensuing inability to connect the dots has resulted in fatal business moves. The upshot of it all is that businesses with high chances of succeeding end up in the corporate

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What appears to you like a mountain may be a mere anthill to an experienced person. When I first saw a guy typing without looking at the keyboard, I thought I was staring at a genius. How else could this marvel be explained? Many years later, it occurred to me that what appeared as the work of a genius was just the stuff of experience. This underlines how valuable experience is which is well captured in business consultancy. Consequently, consultants with many years of experience command substantial billing rates. Experience is therefore a key factor in evaluation of consultants. Consultancy is neither a career nor a profession. One develops in the field over

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When to engage a consultant

As pointed above, consultancy services aren’t cheap in the short run. Thus consultants need not be engaged for routine decision making. On the contrary, they should be brought on board for strategic high impact long term decision making processes and planning. All the same, an entrepreneur can find ways of working continually with a consultant as a business adviser. This is because in as much as a document may be prepared, its implementation will always have unique challenges. The entrepreneur on such occasions should be in a position to solicit quick advice from the consultant. Thus the relationship is not a one off and consultation is not an event but a process. It is a relationship, not a transaction.

Way forward

This could be a good time to assess your business. As the year ends and as you plan for the next one, it is good to look into aspects of your business where you may need help in processing your ideas and packaging them appropriately for the journey ahead. It could be the time to firm up your strategy and document it so that everyone in the business is reading from the same script. Entrepreneurs are usually people of strong resolve and sometimes they may think that asking for help is a demonstration of weakness. This is not the case. No man is self-sufficient and constant consultation is a good business practice. If you have been stuck for years without much progress or breakthrough, then it is about time you sought and took appropriate advice. The writer is an entrepreneurship, management and marketing consultant Email: emunje@yahoo.com or www. facebook.com/njega

28. Marketing 30.Human Resource

Business Kit

Marketing

An example of a service blueprint

Below is an example of a service blueprint derived from a working paper by Centre for Services Leadership, Arizona State University.

SERVICE BLUEPRINTING: A KEY STEP IN SERVICE DESIGN

By Ephraim Njega

Service design and the place of a blueprint

he concept of design is critical in most professions such as building and engineering. Before the actual building is put up, it begins with the drawing of plans. These plans guide the entire construction process. Building without a plan would be a nightmare. In service marketing, design is critical though it is often ignored owing to the intangibility of the service. Like a building plan, a service blueprint is a tool that visualizes on paper how the service will be delivered. It depicts the processes and the actors involved. The purpose of a blueprint is to ensure service delivery is up to the best standards possible. It is used to design new services and to improve existing ones. It can also be used to support implementation of a zero defect policy in service execution. By mapping out the actors and the activities involved in service delivery, close attention can be paid to details.

Components of a service blueprint

A service blueprint is broken into five key components as follows;

. Customer Actions

These are all the actions needed to be taken by the customer in the process of consuming the service. For instance, a hotel customer is required to undertake such actions as reservation, checking in and eating . The purpose of mapping out these actions is to ensure that nothing is left to chance. All actions and the service processes involved present an opportunity for service innovation. For instance, in a university service process, a student is supposed to apply for a course. The process of application can be tinkered with to improve satisfaction with the service. If the process is too lengthy, then it can be shortened. On the other hand, if it is too cumbersome, it can be eased.

. Onstage /visible contact employee actions

These are the activities which involve employees coming into face-to-face contact with the clients. These interactions represent a critical aspect of the service delivery since each represent a moment of truth in which both positive and negative encounters can be experienced with serious implications on service quality. For instance, when the student comes in to deliver his application or attend an admission interview a rude member of staff can ruin the service experience.

. Backstage/invisible employee actions

contact

These are behind the scenes actions undertaken by contact staff away from the visibility of the customer but still play a critical role in service delivery. While such activities are hidden from the customer, their outcome is not. For instance a student can’t see a lecturer when he is preparing for a lecture yet when delivering the same, it will be manifest whether the lecturer prepared well or not. The backstage activities may also present a point of possible critical failure in service delivery. For instance, when processing the applications, a reckless staff member may misplace a student’s application forms making the student miss out on admission. Thus these activities need to be properly controlled and possibilities of failure eliminated or reduced to bare minimum.

. Support processes

These are all the activities carried out by individuals and units within the company who do not come into contact with clients but which need to happen in order for the service to be delivered. For instance, in the case of the said university, the registra-

tion system is a support process which is involved in the application action. The difference between these support processes and the activities above is that they are not undertaken by employees who come into contact with the clients. These processes present internal interactions that should be executed in concert to avoid disappointments by the client. The fee payment system has to be properly linked with the registration and the concerned staff has to coordinate their operations. For instance, suppose a student pays his fees but when he goes to register he is told that he is yet to do so? This will be a service failure yet the student is not privy to the internal workings of the university departments.

. Physical evidence

These are the tangible things that customers are exposed to while consuming the service. For instance, in a university there is the lecture hall, the desks and the board used for illustration. All these affect how the service is perceived. If the lecture hall is dirty and stuffy, the desks are falling apart and the noise from the road next door is too much, then the service quality will be

Any business in service delivery needs to develop a blueprint this will help not only in standardizing the service but also eliminating oversights and subjectivity by individual staff

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perceived as poor resulting in reduced satisfaction.

in a lot of discomfort and dissatisfaction. I have never returned to that establishment.

Physical evidence represents many mistakes in service delivery. In Kenya, we have a poor maintenance culture. When you visit a newly built hotel you will be impressed, but a few years down the line everything may be falling apart. Keys will be struggling to open the door, bed linen will be faded, wall paint will be chipping off, taps will be leaking, some tiles will be missing and the toilet seats will be broken or missing altogether.

Developing a service blueprint

Clearly this laxity needs to be dealt with. With a service blueprint, each of these elements will be mapped and a checklist can be developed to ensure everything is in order. Without a service blueprint, staff members will be hard-pressed to understand how these seemingly small issues affect service delivery. I remember once visiting a hotel where there were no slippers yet it was not all that clean to warrant the serious omission. On questioning the anomaly, we were promptly informed that it was the hotel’s tradition and therefore nothing much could be done. What appeared like a minor issue resulted

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Any business in service delivery needs to develop a blueprint. This will help not only in standardizing the service but also eliminating oversights and subjectivity by individual staff. The first step is to identify the service to be blueprinted e.g. a customer stay at a hotel as in the example above. The other step is identification of customer segments. Various segments may require separate blueprint if there are key differences, otherwise one blueprint will be enough. The third step is mapping the service process from the customer’s point of view to identify the activities they consider as part of the service experience. This requires conducting research to ensure you do not omit aspects that are considered crucial by the customer. For instance, a student attending a lecture may need to drive and park in the university. That action (parking) should not be omitted in the blueprint. The fourth step is mapping the contact employee actions both onstage and backstage. These may include for example delivering a lecture (onstage) and preparing for the lec-

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ture (backstage). This will involve interviewing staff to understand which activities they perform in service delivery. The fifth step is linking the contact activities above with the support functions. For instance the lecturer may require the services of a research department to prepare for a lecture. The linkage helps each person to tie whatever they do with the customer who is at the centre of service delivery. Lastly is adding the service evidence to each customer action step. The lecturing activity for instance requires facilities such as lecture hall, equipment like public address system and teaching aids.

Implementation of the service blueprint

Once developed, the blueprint should be implemented to better the service. It wouldn’t make sense to spend time and money in the process if it does not lead to service improvement. In the end, increased customer satisfaction will reflect in the bottom-line and hence, a service blueprint is a critical tool in arriving at that end. The writer is an entrepreneurship, management and marketing consultant Email: emunje@yahoo.com or www. facebook.com/njega

Human Resource

TEAM BUILDING: HOW TO BUILD SUCCESSFUL WORK TEAMS

feedback. The organization should offer essential business information to the team on a regular basis and enable the team to understand the importance of its existence. Team members should also be able to communicate clearly and effectively with each other and be allowed to bring their viewpoints on the table.

Team building exercises

Team building exercises are a great way of uniting a group, developing its strengths, and addressing weaknesses. The exercises must be planned and fulfilled in a strategic manner. It means that there should be a genuine reason behind a leader’s decision to plan such exercises- for instance, enhancing a group’s communication, creativity and problem solving skills.

By Jeniffer Kamau

t takes great leadership to build great teams. Whether in the local community, professional sports, or in the workplace, team building calls for a clear understanding of people, their motivation to work with others, as well as their strengths. It also necessitates the management of egos and their regular demands for recognition and attention. While team building is both a science and an art, great leaders build high performance teams. As indicated by history, it requires an extraordinary leader with distinctive skills and competencies to build great teams in a successful manner. In the business world, various leaders have stand out in possession of unique leadership skills which have taken their companies to the next level. An example of such a leader is Jack Welsh, who was the chief executive officer (CEO) of General Electric from 1981 to 2001. During his tenure, the value of the company rose by 4000 percent. He established the Jack Welsh Management Institute at Strayer University in 2009 in order to boost leadership and management skills. Having the knowledge to build lasting teams is a pre-requisite for building companies. Without it, most managers fail to become leaders, while majority of leaders fail to attain the highest level of success. It necessitates the capability to master the “art of people”. Team building also implies understanding how every person thinks and utilizes his or her competence in the best way possible. Team building is considered an essential factor in every environment. It specializes at bringing out the best in a team. This guarantees positive communication, self development, leadership skills as well as the capability to work together as a team to solve difficult problems.

There are different kinds of team building exercises that are designed to develop members as well as their capability to work together in an effective manner. These activities range from easy social exercises aimed at encouraging group members to spend time together and interact, to group development activities which are intended to assist persons learn how to address problems, work together to improve performance, and discover effective communication methods.

Four Cs for team building

Organizations employ managers, executives and staff members who are tasked with the responsibility of exploring ways of enhancing business results and profitability. Teambased improvement efforts aim at building the best teams in order to produce excellent results. Team-based horizontal organization structure is perceived as the best design for engaging all the staff in generating business success. Successful team-building should generate effective and focused work teams. Some of the factors which should be considered while building successful teams are outlined below.

Clear expectations

While building a team, executive leadership should communicate its expectations regarding the performance and the anticipated results in a clear way. One of the most important factors to consider is whether the team members recognize why the team was created. Secondly, the organization should show constancy of purpose in supporting the team with the required resources such as time and money. Lastly, executive leaders should give adequate emphasis concerning the work of the team. It should be a priority in terms of interest, attention, time and discussion.

Context

Team members should comprehend why they are taking part in its activities, and how the team strategy would assist the organization in attaining its communicated business goals. They should describe the importance of their team in accomplishing the organization’s corporate goals. The team should also recognize where its work fits in the entire context of the principles, goals, values, and vision of the organization.

Commitment

Commitment is very significant while undertaking any activity. It entails the desire of the team members to take part in its activities. They should acknowledge the importance of the team mission, and be committed in achieving its goals as well as the expected results. Team members should expect acknowledgement for their contributions, besides anticipating their skills to grow and develop.

Communication

Effective communication is a key prerequisite in building successful teams. Team members should be clear regarding the priority of their tasks. They should have an established technique of giving feedback and receiving candid performance

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While planning team building exercises, the most important step is figuring out the challenges faced by your team. Through this, a leader is able to choose effective exercises to help the members solve such challenges. Some team building exercises include the following.

Adaptability and planning exercises are aimed at assisting members plan and be adaptable to change which is apparent in any successful organization. These exercises prevent any kind of resistance. Planning exercises assist teams while undertaking complex tasks or making decisions. The goal of a team leader is to show the significance of planning prior to implementing a solution.

What to do

Sometimes, managers plan an event without having a clear goal in mind. This results in wastage of time. Besides, managers have a high likelihood of losing the team’s respect if the activity turns out to be unproductive. Team building is supposed to be a continuous activity. It can be likened to a marathon runner who is preparing for a race. The runner recognizes that for him to win, he has to train for several times prior to the race. Only through constant and regular training would he have the opportunity to win. Team building works in a similar principle. To ensure long-term success of the group, managers should plan for continuous events during the year and make regular follow-ups. It should be an essential part of the organization’s corporate culture. The aim of team leaders should be incorporating team building activities into

Decision making exercises

Decision making or problem solving exercises are aimed for team members who work together to make complex decisions or solve difficult problems. They are common because most leaders and managers want their teams to have the ability to make decisions and solve problems where they arise. A team leader can give his members a difficult problem that lacks an obvious solution. In that case, the team members have to work together to generate a creative solution. Communication exercises focus on enhancing communication skills within a group. They assist groups to solve problems in a successful manner through effective communication. A team leader should generate an activity highlighting the significance of effective communication in group performance to see how his members respond to it.

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2014 BIASHARA LEO

their monthly schedule. Through this, all members get a platform of addressing their diverse issues besides getting an opportunity to have fun. Team building activities should not be competitive. Competition divides a group as team members tend to work against each other. Additionally, it is not a favourable way of building team unity and spirit. Although sports are used by most organizations as team building activities, it is certain that they can do far more harm than good if they merely focus on winning. They contribute to de-motivating individuals who are poor at sports. Therefore, managers should avoid events which focus on competition and winning, and plan activities which make team members depend on each other to succeed. In a nutshell, effective team building requires leaders to first identify the problems faced by their groups. This should be followed by planning activities aimed at addressing these challenges directly. By doing so, the team leader ensures that the event is beneficial to the group. The main focus should be making team building an element of the daily corporate culture, rather than a yearly exercise. The writer works with the Kirinyaga county government. Email:jenifferkamau@gmail.com

Public Relations

WHAT MAKES YOUR BUSINESS NEWSWORTHY? By Fatuma Ali

ost of the times we imagine that being featured in the media is only reserved for the businesses that rule the economy or those that pay huge taxes. But often, when we watch the news, we see businesses that have started and gradually grown right before our eyes receiving huge publicity and we secretly wish we were in their positions. It is true that every business is a publisher. In other words, every company has the opportunity to produce content, such as blogs and podcasts and so on, to attract attention and prospects and increase its profile. In essence, every business these days is, increasingly in some form of media. But nonetheless, there is a certain prestige to getting a major news outlet to tell your story for you. And there are other benefits, too, of course such as wider reach, and instant authenticity, not mentioning the fact that you can brag about it. Every day, for example, media houses receive dozens of emailed press releases and idea pitches from business owners and the public relations people who work for them.

Featuring small businesses

Local papers and news stations happily feature small businesses all the time.

Take for instance the motivational success business stories in the newspapers each week. Most of us are great fans of business news especially when they feature a business that has thrived from nothing. Personally, I derive great motivation from one of the entrepreneurial programmes ‘Young Rich’, which interviews successful entrepreneurs and how they started. Some businesses may seem ordinary, but once their story is heard, you realize they are not. The path they have walked in and the struggles they have endured make their story extra ordinary. Being featured in the media is an inexpensive marketing tool. Moreover, finding newsworthy information about your business can be a huge boost for your business leading to increased sales and enhanced brand recognition. The idea is to get your business out there and to let the wider public know that you exist and what you are offering. You could use any form of media to your advantage. Social media for example is a great way to spread the news about your business because it reaches people quickly and it gives your followers the opportunity to share your news with their friends. Your news could easily start trending on Twitter or Facebook if you promote it well. The secret is to push the right stories.

What makes your business newsworthy?

Whenever there is a feature in the newspapers or television with a personal touch, my interest automatically sparks up. Human interest stories are more relevant because they put a face to your business. So if the story behind your business is motivating, and would attract interest, it makes you seem more real and approachable. Or you could have a client who has thrived through you, tell his story. Take the example of our banks. Many businesses have grown because of the loans

obtained through the banks and for a long time, most banks have piggybacked on the success of their clients to gain publicity and create awareness of their product offering.

Corporate social responsibility (CSR)

Today, corporate social responsibility has become the in thing in the business world. This is because besides the great publicity received, giving back to the society is fulfilling. Community outreach stories usually get picked up because once again, they generate a lot of interest from the members of the public. Giving back through volunteer work and charity organizations will spark a lot of interest in your community because it gives you the chance to explain why these organizations need help and what you are personally doing to help your community. Photo opportunities of worthy causes are usually great evidence of the great work you are doing to contribute to the society. Send them to the media for coverage in the pictorial section.

product or visiting your outlet, write captions and use them on your publicity wall. Getting these endorsements isn’t too difficult if you reach out to local celebrities.

they timely because they are tied to a popular current event, but they are also newsworthy because they show a change or development in a particular direction.

Is your story tapping into a social, political or economic trend? The media will not care about your restaurant’s new children’s menu, but they may be interested to hear about your innovative babysitting service, especially if you pitch your business as family friendly. It is important to note that it takes three or more to make a trend, so if you use this hook, be prepared to supply the names of two other businesses that are doing something similar. To avoid giving your competition publicity, look for businesses outside your field or geographic area. For instance, a furniture store with a play area or another restaurant that offers babysitting, but in a distant city, would fit your trend. Those stories will most likely be picked up by the media. Not only are

If your business is doing something significant in your community that is different from everything else, this is newsworthy. For instance, if you have started a programme for underprivileged youth, donating a portion of your profits to a nonprofit organization or you are working with activist groups to get a law in your area changed, then your story deserves to be in the public arena. Getting involved in unique life changing activities in your society is not only newsworthy, but it would also attract the media and even drive them to requesting an interview with you. So if you are looking for some positive, free press, find an interesting angle and pitch your story to your local news stations and

papers. Make sure your story is built for your audience and that is has news value. Real credibility is given to a business when the story is well-rounded, fits into a trend and encompasses other businesses that relate to a “bigger picture” or viewpoint. The most interesting thing about press outreach is that it isn’t ever just a one-time sprint. Press coverage can snowball into more press coverage, so instead of going after your industry’s leading publication, consider pitching smaller blogs or local news. People who work in media do read their competitors and may be looking for a source—if they see you featured in a story, they can assume you’re accessible and may try to reach you. The writer is a public relations consultant based in Nairobi. Give her feedback on info@asantemedia.co.ke

Department of Hospitality and Tourism Management 1. Diploma in Travel & Tour Guiding Management 2. Diploma in Hospitality Management 3. Diploma in Tourism Management 4. Diploma in Nutrition, Food Science and Health Department of Media, Arts and Design 1. Diploma in Communication and Media Studies – Broadcast, Print, Advertising and Public Relations Duration: All Diplomas shall be oﬀered in one and a half calendar years (18 months) CERTIFICATE PROGRAMMES

Celebrities

Does someone famous or important in your community frequent your business? If so, this is a great way to get some free publicity. You could take pictures of them using your

Real credibility is given to a business when the story is well-rounded, fits into a trend and encompasses other businesses that relate to a “bigger picture” or viewpoint

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d i s ta n c e l e a r n i n g & e - l e a r n i n g n o w ava i l a bl e UNDERGRADUATE PROGRAMMES Faculty of Information Communication & Technology 1. Bachelor of Science in Information Technology (BSc. IT) Faculty of Business 1. Bachelor of Business Information and Technology (BBIT) 2. Bachelor of Business Administration and Management (BBAM) Duration: Three year programme subdivided into tri-semesters OR 2 Years with exemptions approved by university senate. DIPLOMA PROGRAMMES Faculty of Business 1. Diploma in Business Management & Administration 2. Diploma in Human Resource Management 3. Diploma in Purchasing and Supplies Management

Intakes in January, May & September. ENROLL TODAY!

4. Diploma in Business & Oﬃce Management 5. Diploma in Marketing Faculty of Information Communication Technology (ICT) 1. Diploma in Information Technology 2. Diploma in Business Information Technology 3. Diploma in Computer Science Department of Education, Arts and Social Sciences 1. Diploma in Community Development 2. Diploma in Social Work 3. Diploma In Community Health 4. Diploma in Project Management 5. Diploma in Education (Primary Option) 6. Diploma in Early Childhood Education 7. Diploma in Counseling Psychology Department of Engineering 1. Diploma in Electronics Engineering 2. Diploma in Electrical Engineering (Power)

1. Certificate in Development Studies 2. Certificate in Early Childhood Development and Education 3. Certificate in Electrical and Electronic Engineering 4. Certificate in Food Science and Nutrition 5. Certificate in Hospitality and Tourism Management 6. Certificate in Information Technology (CIT) 7. Certficate in Business Management ENTRY REQUIREMENTS Undergraduate An aggregate grade of C+ (C Plus) in K.C.S.E OR Two principal passes in 'A' level/Kenya Advanced Certificate of Education (KACE) OR any othe relevant qualification approved by the university senate. Diploma KCSE with a minimum aggregate of C Plain, Certificate Pass or any other relevant qualification approved by the university senate. Certificate KCSE with a minimum aggregate of C- or any other equivalent qualification approved by the university senate. Zetech University Main Campus P.O.Box 2768 - 00200, Nairobi Mobile: 0720 554 205 / 0706 622 558 Facebook: Zetech University @ZetechUni E-mail: courses@zetech.ac.ke Website: www.zetech.ac.ke

Celebrating Young Entrepreneurs

36. Celebrating Young Entrepreneurs

Main Story kiosks for traders where they can conduct their businesses peacefully.

CELEBRATING YOUNG ENTREPRENEURS: How Entrepreneurship Can Transform Kenya’s Youth

Entrepreneurship is gradually becoming mainstream thanks to concerted efforts from the government and the private sector to create awareness on the importance of harnessing the entrepreneurial skills of the youth. Have they pounced on the resultant opportunities? By Amos Wachira

oung entrepreneurs and risk takers are the drivers of many of the emerging economies in Africa and other developing countries.

Recent reports show that several African countries are beginning to focus on opportunity entrepreneurship rather than necessity entrepreneurship – and that sub-Saharan Africa is the region with the highest number of people involved in earlystage entrepreneurial activity. A new World Bank report has identified entrepreneurship education and training as a catalyst that could stimulate innovation and generate jobs among university graduates, especially in Sub-Saharan Africa where graduate unemployment rates are high.

Reliance on white collar jobs

In Kenya for instance, the spirit of

entrepreneurship is at an all time high, as efforts by government organizations and private sector players seem to be gradually paying off.

Even more painful is the fact that most successful entrepreneurs were either school drop outs or did not attend school at all. Experience has shown that most of the under educated people end up succeeding in entrepreneurship.

Are hawkers entrepreneurs?

Take the case of hawkers and street vendors in Kenya for instance. The two hallmarks of entrepreneurship are identifying an opportunity and pouncing on it to fill the gap while still making money out of it. They have both. Over time, street traders have been known for their penchant with identifying a gap in the market and aptly filling it for a quick buck. For instance, when it rains and everyone is in need of an umbrella, street traders will move swiftly to get the much needed commodity and sell it to buyers. Sadly, this entrepreneurship spirit is not harnessed. Since time immemorial, street traders have been hounded out of the streets by local governments ( now county) askaris. While some people have welcomed their removal from the streets, some proponents detest this move, saying that the government needs to tap into this potential and help the street traders develop their skills to go on and establish thriving businesses. Walter Mong’are, the director of communications at Nairobi City County explains that the county is doing a lot to contain street traders, adding that there are designated market places and branded

“We refer to them as entrepreneurs. What we say is that they need to follow laid down procedures so as not to inconvenience other Kenyans. If you are an entrepreneur, get a permit and establish your business,” he says adding that the county askaris’ job is to enforce City County by laws and not to engage in running battles with the traders. He emphasizes that getting a permit should not be perceived as an expensive affair but as an investment in one’s business. Currently, aspiring and established traders can get certificates online. “People only need to access our website, either through their phones or computers and pay for the documents,” he advises.

According to him, the buyers also need to be safe and they should not be subjected to lawlessness when they are going about their business. What needs to be done to harness the entrepreneurial spirit? “Financial education should be part of the curriculum,” offers Njeng’ere of KICD. He says there is still a long way to go if the education sector is to equip children with the requisite financial education and entrepreneurial skills to change their mindset from believing that they can only study to get jobs and make them create jobs through entrepreneurship. KICD is making major strides on this front. “We are conceptualizing reforms in the curriculum to integrate financial education into the education system.”

David Njeng’ere, the acting director at the Kenya Institute of Curriculum Development ( KICD) attributes this turn of affairs to an apparent change of mindset and the rising focus on financial literacy in schools.

He says that business education as taught in schools is purely career oriented and that financial education will be beneficial to the youth in terms of letting them know how money influences their lives.

“Go to school, study hard and get a good job - that was the mindset that informed education for a long time. It has made education just a cognitive based entity that is only supposed to empower the child with some knowledge. After studying and getting the jobs, and the resultant earnings, what do the young people do with the money? He quips.

Professor Edwin Wamukoya, the Vice Chancellor of Zetech University concurs with him.

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The number of corporate chiefs who have taken up teaching jobs has more than doubled in the past two years, establishing a trend that human resource experts say

“At Zetech, we are concerned about this mismatch and we have developed policies to ensure that for every course there is internship.”

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major undoing for the youth is the current belief that they will be successful almost immediately after getting into business. Another problem, he says, is the widespread view among employers that most graduates lack requisite hands on skills to either succeed in business or in their careers. “We realized there is a mismatch of skills in the job market. What is being taught in schools does not tally with the requirements of the job market,” admits Gachugu. KYEP is a four year government of Kenya project with support from the World Bank which addresses issues of lack of skills and work experience for vulnerable youth in Kenya. KYEP falls under the Kenya Private Sector Alliance, the apex body of the private sector in Kenya.

“Unless these laws are followed, then there will be confrontations between the county askaris and the street traders because we cannot allow all and sundry to sell their wares in the streets.”

In the past, the youth have been known to be over reliant on white collar jobs, a notion that is changing tremendously.

Walter Mong’are,director of communications ,Nairobi City County.

Currently, private sector players have partnered with universities in a bid to impart skills to students that will make them fit in the work environment-by sending industry captains to the lecture halls.

David Njengere, acting director, Kenya Institute of Curriculumn Development. could inject practical knowledge in local universities-the kind that helped their European and American counterparts earn top rankings globally. Meanwhile, most young people who have decided to follow the uncharted paths of entrepreneurship have seen relative success. This underpins the fact that entrepreneurship can be a sure way of generating income and creating jobs.

Wave of entreprenuership

Currently, there is a class of enterprising youths in the country who have not only shunned white collar jobs, but have moved from being job seekers to job creators. Is the current wave of entrepreneurship sustainable? “The youth can rise up and reap from entrepreneurship. But they must know that it takes patience and sheer grit to succeed in this area,” advises Evans Wadongo, an award winning young entrepreneur who was feted by Forbes for his invention. He is the brains behind “Mwanga Bora” a solar powered lamp that is currently changing lives in rural Kenya. Ehud Gachugu of Kenya Youth Empowerment Project (KYEP) also reckons that patience in entrepreneurship is a virtue that is not taught in schools. He says that the

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Since its inception in 2010, KYEP has provided training and internship programmes to more than 11000 youth in the country, with over 50 per cent of the interns securing employment, starting their own businesses or acquiring new skills.

Taking advantage

Other interventions include the Youth Enterprise Development Fund, The Uwezo Fund and an array of solutions by private sector players all geared towards helping the youth improve their lives. Despite these efforts, claims abound that the youth do not take advantage of such interventions. Experts have been baffled by the young generation’s general lack of interest in such well meaning initiatives. A spot check in various incubation programmes that fund brilliant ideas developed by the youth depict a grim statistic-the number of young people with ideas that can be turned into money making businesses is declining sharply. On the other hand, venture capitalists are not getting enough brilliant start ups to fund. “There are many programmes that can help the youth get into entrepreneurship. They need to come out of their comfort zone and take charge of their destinies. We need to be the next generation of entrepreneurs who will set the record for the young generation,” advises Eric Kinoti, a millionaire entrepreneur who manufactures tents.

Celebrating Young Entrepreneurs

Celebrating Young Entrepreneurs Each cycle has 2 months of training with third party training providers, 2 months for placement interviews with employers and 4 months of work place experience.

establishing their enterprises. “Some young people have been advised by their parents that taking loans is a risky affair. Cultural and religious issues also hinder them from doing so,” she further says.

“We target unemployed youth aged between 15 to 29 years, not in school and with a minimum of class 8 certificate,” offers Gachugu.

SamueI Njoroge who sells second hand shoes in Ruiru observes that successive governments have not tackled the challenges facing the youth effectively. According to him, the youth have actually been marginalized, neglected and put on the periphery when key decisions regarding their well being are being made.

To reach to as many youths as possible, KEPSA places an advert in the local dailies for a period of two weeks during which interested individuals fill in application forms. Due to its low academic qualification requirements, the project embarks on strict criteria of selection to ensure that only those who meet all the requirements are enrolled. Despite this, there are oversubscriptions. “We always allocate the number we can accommodate per cycle then randomly select the applicants to ensure fairness,” says the youthful director.

Ehud Gachugu, project director of Kenya Youth Empowerment Project, at KEPSA.

AT KYEP, YOUTHS GET SKILLS TO BOOST THEIR EMPLOYMENT CHANCES Government backed interventions aimed at arming the youth with the much needed work experience are gradually paying off as Amos Wachira finds out.

n Kenya, youth unemployment is a ticking time bomb. With statistics showing unemployment rates hovering at anywhere between 65% and 80%, the need to look for more innovative solutions to this catastrophe is clear. Though youth unemployment estimates vary , between 1.8 million and 10 million people aged between 15 and 34 are without work, even as debate ranges on whether they are unemployed or underemployed. “Most young people in the country are underemployed not unemployed. This group of people is aggressive and they cannot afford to stay idle,” says Ehud Gachugu, the director of Kenya Youth Empowerment Project (KYEP). In Nairobi, there are thousands of young people – and probably even more flocking in from rural areas – looking for work. KYEP aims to address this problem by offering work experience and internships to the youth to boost their chances of getting employment. Currently, there is a perceived skills mismatch as employers continue to decry poor skills from fresh graduates who are

apparently out of touch with the vagaries of the job market. KYEP is a project under the Kenya Private Sector Alliance (KEPSA). It is a government of Kenya pilot project with support from the World Bank that is coordinated by the ministry of devolution and planning and has two components. These are capacity building and policy development and private sector internship and training. The private sector internship and training component aims at improving youth employability and integration into the work environment by providing training and internships within the private sector for over 11 000 youth. It aims at having at least 50 per cent of the interns secure employment, start their own business or further their education after completion of the six month internship.

How it works

The project is divided into cycles each lasting 8 months with six months dedicated training and workplace internship programmes.

Since the project‘s inception in 2010, it has seen massive success. It is currently in the sixth cycle. and it works with over 2000 employers in Kenya. To date, over 13 000 youth have successfully undergone training and internship programmes , with over 80 per cent of them getting absorbed into the job market, recommendation or further training to address the gaps which made them unemployable in the first place. Despite such efforts by the government, quasi government organizations and the private sector, why are most of the qualified youth not gainfully employed or self employed.? “There are disjointed efforts by different players in this area. Besides, most programmes targeting to empower youths are wrongly designed while their delivery is also a challenge,” opines Gachugu adding that entrepreneurship should be incorporated into the curriculum. Currently, the education system emphasizes more on white collar jobs than self employment.

Wrong perception

According to him, though most young people have an entrepreneurial spirit, they have the wrong perception about enterprise altogether. “They want to make it big very fast. They lack the patience even if they have brilliant ideas,” he offers. The solution to this, he says, is bringing in established entrepreneurs to mentor the youth who would like to start business. “Entering into business should be seen as a natural way and not an option for those who fail in the education system. The KYEP project is designed in a way that the youth can go into entrepreneurship.”

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Youth Enterprise Development Fund CEO, Catherine Namuye inspects cucumbers at a farm of the Fund’s beneficiary.

YOUTH UNEMPLOYMENT: ARE WE DOING ENOUGH? With youth unemployment getting out of control, the government has launched various interventions aimed at addressing the grave problem, key among them being the Youth Enterprise Development Fund. Are these interventions achieving their objectives? By Anthony Kiganda

frica has the highest concentration of young people in the world. Apparently, more than half of the people aged 18 to 35 years in the vast continent have no jobs. According to a report prepared by experts from the African Development Bank (AfDB), youth population in Africa is set to double by 2015. In Kenya, 70 percent of the young people who are ready to join the labour market remain unemployed. In Nairobi for example, it is normal to see a stream of young people walking daily from the densely populated slums and heading to the city’s Industrial Area where they scavenge for casual jobs. In most cases, only a handful of them are lucky while others are forced to make a tortuous journey back home, without anything to cater for their basic needs. Sadly, most of these are graduates who have been looking for elusive jobs in the corporate world, and after hitting headwinds, have resorted to menial jobs and handouts for survival. Although the government is not churning out new jobs to match the demand of the ever growing number of fresh graduates and school leavers, its efforts to empower the youth cannot be taken for granted. The Youth Enterprise Development Fund is one of the key initiatives aimed at addressing the time bomb that is youth unemployment. It enables enterprising youth to access low interest financing for establishing and scaling up businesses.

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Why the Fund?

The main reason for this fund was to tackle the menace of the large population of idle and unemployed youth. A World Bank report of 2011 indicates that majority of the youth who join rebel and terror groups worldwide are motivated by lack of meaningful ways of generating incomes. The Fund can be accessed by the youth either as groups or individuals. The organization’s chief executive, Catherine Namuye, says that since its inception, it has registered a 70-80 percent success rate in financing youth owned enterprises. “I would say to some extent there has been a kind of ignorance in the perception of the youth that anything that comes from the government is hard to get, but then they have not taken the initiative to try,” she says. “We have thousands of youth across the country whom we have financed. They have created wealth for themselves and their enterprises have expanded to create employment for others,” she adds. Our formal system of education has been blamed for not supporting entrepreneurship among the youth. Young people have long been encouraged to study hard to get white collar jobs, which are erroneously viewed as prestigious and well paying. Additionally, most youth are risk averse and they fear financing as a way of growing and

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“During campaigns, a lot of politicians pledge many good things to young people. After they are elected you do not see them anymore,” he laments. Namuye acknowledges that tackling unemployment needs concerted efforts and goodwill from every Kenyan. “The youth Fund cannot be the ultimate solution to problems facing the youth in this country. We are trying our level best, but the young people should change their mindset and embrace innovation and entrepreneurship,” she advises.

Capitalizing on partnerships

She hopes to see the Youth Fund become a household name in the country and increase its beneficiaries to 3 million from the current 2.1 million. In addition, she is looking forward to bringing on board strategic partners, like-minded institutions and stakeholders in order to pool resources for the Fund’s benefit. The Youth Fund is currently working with several county governments including Embu, Kericho, Uasin Gishu and Mombasa. In three years time, the it is hoping to roll out Its operations in all the 47 counties. In response to market demands, it has increased the unsecured loan limit to Ksh1 million from the previous Ksh500, 000. In Embu county to start with, the Youth Fund hopes to transform Embu Sports club and bring it under the management of the youth. Some businesses will also be introduced. In Nakuru on the other hand, it has secured land from the county government where it will set up modern shops and kiosks for the youth to carry out their trade. Namuye praises the government for putting the youth at the centre of its economic development agenda and urges them to take advantage of the opportunities at their disposal. She advises the youth to forget the notion that they can only start businesses when they have huge capital, noting that great businesses flourish on great ideas. “You cannot be a youth forever, take advantage of the opportunity while it lasts as time is known to fly fast,” she ends.

Celebrating Young Entrepreneurs

IN ENTREPRENEURSHIP, THERE IS NO GIVING UP- ERIC KINOTI By Amos Wachira

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Being a millionaire at an early age makes people think you are lucky. And yes, I was. Nevertheless, the truth is that you have to be nurtured and prepared well at the early stages of your life in order to amass a fortune,” says Eric Kinoti, a serial entrepreneur who owns a raft of businesses in Nairobi. At the tender age of 30 years, Kinoti is the brains behind Shade systems, a tents making company, Alma Tents, a tents hiring company, Bag Base Kenya, a company that manufactures leather and canvas school bags, laptop bags, corporate bags, travel bags, folders, wallets, diary covers and all types of covers and bags and SEN PR, a digital public relations company that offers digital PR, online activations, online monitoring and publicizing for brand, individuals and companies.

Getting started

The 30 year old’s journey to entrepreneurial success started at an early stage in his life. “I started assisting my mother in her business while still at lower primary school. At school, I was selling sweets to other kids which I got from my father’s wholesale shop. At the age of 10, I was the cashier at my father’s wholesale store which was busy. At high school, I approached the management and proposed to be selling cakes to the students. The management agreed and I started running the school canteen,” recalls the first born in a family of four. Kinoti grew up partly in Mombasa and Meru. When his parents relocated to Meru, he went to St. Martins boarding school before proceeding to Abothogochi academy. For his O Levels he attended Nkubu High School. After this, Kinoti went back to Mombasa and joined Tsavo Park Institute where he pursued a diploma in business management. His defining moment came after he completed college in 2004 when he fully got into business. “I started working as a cashier at a hotel in Malindi. My work was mostly at night shifts so I had a lot of free time when I would buy and distribute eggs around the town. In 2007, I took a leap of hope and quit the job to fully get into

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business. With a capital of Kshs20, 000, I started buying milk from Kinoo and Kiambu and supplying it to hotels in Nairobi and Mombasa. The milk business was very challenging because it had a lot of licensing and capital requirements.” The youthful entrepreneur says that he was frustrated by the business to a point when he gave up and went to work as an account opening officer at the Standard Chartered bank. It is at this point that the illustrious man realized that every job had its own set of challenges and vowed to fully concentrate on reviving his business.

Life as an Entrepreneur

In 2008, after the post election violence in Kenya, Kinoti moved to Nairobi and started supplying food stuff like rice, beans and maize and other merchandise to schools in the then Eastern province as well as Mombasa and Kisumu. It is in this business that he met a client who required a tent for a function. A true entrepreneur is known to identify opportunities and pouncing on them to establish a thriving business. Accordingly, Kinoti took up the challenge and sourced for one tent and made a tidy sum of money. After this, he never looked back. He went and withdrew all his savings and ventured into the new business. This was the genesis of a ring of enterprises that he was to establish. At 24 years, Kinoti started Shade Systems EA with only Kshs60, 000. Shades System East Africa manufactures military and relief tents, branded gazebos, restaurant canopies, car parking shades, marquees, luxury tents, wedding party tents, canvas seats and bouncing castles across the region.

Overcoming hurdles

Despite the fast paced growth of the tent company, capital was a major setback. The entrepreneur relives the anguish he underwent after he approached a shylock for a quick bail out, a move that turned counterproductive as he almost lost his business due to the high interests that the shylock slapped him with. It was in 2010 when lady luck came smiling. Kinoti sold a canopy tent to an Asian family and that is when everything started falling into place. After that, he got a big tender to supply tents to the armed forces and he has never looked back.

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A self made millionaire, Kinoti understands the rigours of starting a business from scratch and building a huge enterprise that employs hundreds of people and rakes in impressive profits. He has therefore set out on a mission to mentor young entrepreneurs. “Since I had no mentors while starting my entrepreneurial journey, I do not want other young entrepreneurs to go through the same. My dream is to mentor as many youth as possible and be an inspirational figure to everyone. I believe when you inspire young people, you are creating self-employment because this gives them the drive to make their dreams come true. Hope is important no matter the number of challenges.”

Entrepreneurship boot camp

To further achieve his new found mission of inspiring the youth, Kinoti is organizing an entrepreneurship boot camp at Masai Mara for three days from 19th to 22nd December. The boot camp will be graced by successful but youthful entrepreneurs and speakers from all over Africa who will talk to their budding counterparts, start up owners and employees who have a side hustle and want to make it in business. “I have a passion for mentoring, and I want to take this opportunity to do it in a major way. Africa’s future lies in the youth, and we cannot make meaningful economic strides if we keep shunning entrepreneurship,” says a confident Kinoti.

What it takes to earn the first million

Most of the time, when successful people are profiled in the media, they only give stories of the glamorous lifestyle they lead and how much money they make. They neither give stories on how hard it is to actually earn one million shillings nor how painful it is to lose three million in a deal gone sour. In the end, many young people think making money and building a successful company is something that can be done overnight. “Some people say I am lucky, but I was prepared when lady luck smiled on me. If I hadn’t been, no matter how lucky I am, I wouldn’t have succeeded in business,” shares Kinoti. “ Don’t wait until you have millions to step up a business because it might never happen, begin with what you have, if it is Ksh5,000 register your company and see things flow for as they say, where there is a will there is a way,” he adds.

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According to him, entrepreneurship is a journey, and not a one-off get rich scheme. It demands one to be innovative and creative.

Creating the voice of hope

An ambitious entrepreneur, Kinoti has set his eyes on making Shade Systems an African brand. Besides, he is working on reaching the youth in the continent and being their voice of hope. “I want to build an empire of solution providing companies. I just don’t want to get money; I want to provide solutions to my customers. “ He says that there is myriad of challenges in entrepreneurship but the youth need not to give up fast if they want to be successful. He recalls encountering problems while sourcing for business as a start-up as many potential customers could not trust him due to his young age. “The qualities that underline my success and set me apart from others in this field are hard work, honesty, consistency, focus, being prayerful and being outgoing. I do feel a responsibility to use my brand to tackle particular social issues,” Kinoti says. “ Most of the people you come across plot bad things on you because they view you as a cash cow and that is the reason why I choose to give back to the society by engaging in activities related to youth,” he adds. The globetrotting entrepreneur draws his inspiration from the fact that many young people in Africa have a will to prosper.

Greatest achievement

“I can’t really single out my biggest achievements so far. God has been so faithful to me and I have seen tremendous growth over the years. However being named Social Media Awards Kenya Most Influential SME Personality 2014, Top 30 under 30 most Promising Entrepreneur in Africa by Forbes, Business Daily 40 under 40 Kenyans made me feel appreciated as an entrepreneur. Other moments include being appointed a Kenya National Chamber of Commerce and Industry patron, and being nominated for CNCB Africa All Business Leaders Awards 2014,” the young entrepreneur observes. His goal is to have a continental footprint which though seemingly audacious is something he can achieve given his burning drive to excel. Time is set to prove him right.

Celebrating Young Entrepreneurs

We usually go out of our way to ensure that couples get experiences that are out of this world to spice up their marriages

he tourism industry in Kenya is mainly dominated by foreign visitors who arrive in big numbers to get a glimpse of our attractive flora and fauna. Rarely do the locals tour their country except during the traditional Christmas and New Year festive season. Spotting a business opportunity in the hugely untapped domestic tourism segment, an enterprising couple, Simon and Sarah Kabu decided to venture into it. It all started like a hobby. Little did they know that their love for social media would turn into a magnificent company called Bonfire Adventures that organizes safaris for both local and international tourists. The duo began their success story six years ago on Facebook; poking others, inviting friends and sharing pictures of the captivating and compelling places they had visited. The couple, being young had passion for travelling and so they began touring different places in the country and abroad. They then started inviting their friends for short trips which they planned and executed. “Every time we organized something, it would turn out so well that our friends decided to leave the planning to us whenever there was an event or getaway,” Simon says. Then in 2008, they began sharing their travel experiences in the Kazi Afrika blog where they received requests from lots of friends who wanted them to organize their trips at a fee. This was the period when the country was recovering from the turmoil of post election violence and tourism (both domestic and foreign) had declined significantly. The 38 year old then consulted his wife and they began promoting Kenyan tourism on the blog. That is how Bonfire Adventures was born.

Simon and Sarah Kabu, the brains behind Bonfire Adventures

HOW A TRAVEL COMPANY CAPITALISED ON SECURITY THREAT TO BOOST DOMESTIC TOURISM The humble beginnings of Bonfire adventures By Anthony Kiganda

The couple says that being strong believers of happy marriages, they are passionate about romantic getaways, honeymoon packages, wedding anniversaries, unique engagement proposals, and glamorous wedding destinations. “We usually go out of our way to ensure that couples get experiences that are out of this world to spice up their marriages,” says Simon. therefore was to reverse the belief that only foreign tourists could visit the country. “Most people were surprised to learn that they could visit many places in the country at an affordable rate,” says the Egerton University graduate. The company then started organizing for trips abroad. According to Sarah, Simon’s wife and the managing director at Bonfire, the expansion was not planned. It was as a result of rising demand from their clients. “After helping our clients visit nearly all tourist destinations in the country, they wanted more trips and that is when we began organizing the foreign tours,” she says.

High demand

When demand is high, the company hires more vehicles, especially during the August and December holidays and also when people are getting married and the number of couples seeking honeymoon services is high. The couple takes every challenge as it comes. Early this year, Kenya was slapped with travel advisories effectively damaging the tourism industry. Sarah says that Bonfire Adventure had done extensive marketing abroad when countries like the US, UK and France issued travel bans demanding that their citizens refrain from visiting the Kenya’s coastal region following a wave of insecurity that hit the nation.

Uphill task

But starting off for Simon and Sarah was no easy job. Like most first-time entrepreneurs, they struggled getting off the blocks. Their first savings were barely enough to sustain them leave alone pay the office rent. Secondly, they made the painful decision to quit their office jobs and take the risk of venturing into a new world. Simon graduated from Egerton University and was once employed as a tout before landing a job at Brookside Dairies as a marketer. Afterwards, he moved to Spin Knit as a salesman. Later, he would work at Unga Group limited as a sales representative, before calling it a day. He urges young people aspiring to be entrepreneurs to exercise patience in their businesses, honesty, hard work and proper planning. For couples wishing to start a business together, Sarah and Simon advises them to trust one another.

“We used the social media to market ourselves - mainly our pages on Facebook, Twitter, and Google+ - where we had our first (virtual) office before getting space at a friend’s premises. Our startup capital was less than $230,” says the former marketing executive.

The hallmark of their business is excellence in customer service. “We check on our clients even when they are on holiday to ensure that everything is working out fine. This way, we are able to offer them excellent services. There is no shortcut to success you must take the stairs,’ he concludes. Tel: +254 20 206 77 88 Mobile: +254 722 879 629 +254 735 120 929 Facebook: Bonfire Adventures And Events www.bonfireadventures.com

Bonfire Adventures took advantage of the little knowledge that most Kenyans had on domestic tourism. In fact, Simon says that most people used to think that organizing for local trip is expensive and his major task

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As part of their long term plan, the flourishing entrepreneurs hope to see Bonfire open offices across the globe. Simon is certain that his dream will come true.

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Celebrating Young Entrepreneurs

YOUNG ENTREPRENUER REVEALS HOW HE BUILT HIS WEALTH By Amos Wachira

uccessful entrepreneurs like Bill Gates and Steve Jobs share similar qualities. From tenacity to the ability to tolerate risks, this breed of entrepreneurs has walked the road less travelled in their quest for success. Joshua Mwita, a high flying young entrepreneur also bears these traits. Tellingly, Mwita is the epitome of entrepreneurial resilience. He has risen from humble beginnings to impressive heights within a short period, thanks to his tenacious and daring character.

Here is how he did it

A decade ago, Mwita was struggling to make ends meet just like most young people in the country. He went to high school, earned decent grades, and held a few low paying jobs. He lived an impoverished life in Gilgil, Nakuru, where he was born. “We used to go to the army barracks in Gilgil where we would feed on left overs and carry some home. Mum would sort out the little bits of food to prepare a fresh meal. All along I did not want my life to remain this way forever,” recalls Mwita with sadness. Later in life, he realized that he could come out of this endless pit of poverty. When studying at Utumishi Academy, he started to preach to fellow students. He describes his dedication to serving God as his saving grace.

Sad chapter

Just when he was beginning to see some light at the end of the tunnel, another sad chapter in his life was opened when his father, the sole bread winner for the family, was involved in an accident. Mwita was in his fourth form. He says that things turned from bad to worse as the accident led to his dad’s sacking, landing a heavy blow to the family. “I did not know what to do after finishing high school. I was however lucky to land a sponsorship from Africa Enterprise Evangelical ministries in 2002. I went to South Africa to study theology,” offers the 34 year old. Returning to the country, the young graduate would land a job in Nakuru where he taught in a Bible school. They say that the most successful of entrepreneurs have fire in their bellies that always nags them to set aside everything else and embark on their entrepreneurial journeys. Mwita was no different. “After teaching for a year, I felt that this was not my field. I was shopping for something

Joshua Mwita, a high flying young entrepreneur.

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to do that would add value to my life and unlock my potential.” His entrepreneurial journey kicked off in a rather unexpected way.

By the time he quit his job after four years; he had established a thriving enterprise and made a name in the entrepreneurial world. His flagship company, Zacs Construction was the most successful.

“I quit the teaching job and applied for another one at a property management firm where I was taken in as a real estate manager despite having no experience on the job.”

“I have no training in construction but I have a dedicated team behind me. It is made up of a quantity surveyor, an architect and two more employees,” he shares.

He was posted in Gilgil to manage a housing estate. His job involved managing all the contractors that supplied the estate.

At Zacs Construction, obsession with excellence and value addition are the two main pillars that have seen the company grow tremendously.

Filling a gap

An ambitious person, he devised a way of filling a gap that he identified in the business. “I realized that the firm was making huge payments to suppliers who were doing a shoddy job. I started registering companies which would deliver efficient services while still making an income out of it.” Mwita Says he never considered being an entrepreneur when e was growing up thanks to an education system designed to produce employees rather than employers; however the need for better and for more gave me the courage to step out to be counted. That gave way to the birth of a raft of companies that Mwita registered under his name. The first was Zacs Construction, a building and construction firm registered in 2012. Joe security services and Diva World Limited later came up and they were followed by a catering company, Jomwi Caterers. Unbeknown to his employers, Mwita was raking in more than Kshs100, 000 every month from his companies, though the firm was giving him a meagre salary.

In this business, you need to build trust with your clients for you to thrive, trust takes a long time to build, but when you succeed on this front, you can get just about any contract

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It is easy to realize this by looking at how the members of staff of this company relate with each other and also with their stakeholders.

Big contracts

Since the company was established barely two years ago, Mwita has landed big contracts from the Central Bank of Kenya , Kenya Police Sacco, Department of Defence, Kenya Airports Authority and the Constituency Development Fund among others. His secret, he says, lies in his keen attention to detail and his ability to build trust with his clients. “In this business, you need to build trust with your clients for you to thrive. Trust takes a long time to build, but when you succeed on this front, you can get just about any contract.” Mwita adds that being able to strike a rapport with his prospective clients gives him an edge over his competitors.

Cash flow

The biggest challenge in the construction business is cash flow. Mwita has been able to overcome this challenge by building lasting relationships with players in the construction value chain. “Construction work is capital intensive. You need to have a lot of money to commit to projects as payments are usually made after their completion. If you do not have deep pockets, you can find yourself in a fix,” he advises. He says that by establishing contacts, construction work stakeholders like the cement makers and other suppliers can easily trust somebody and extend credit services to him.

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He advises his peers to focus on their strengths and to work hard so as to transform their lives Like many other entrepreneurs, financial difficulties at some point had threatened the life of his enterprise just when things had started looking up. He was running deep in debt. One of his worst experiences was completing a CDF project only for the administration to decline to pay him, citing variations in the original budget. This altercation was finally settled in court. “Access to capital and credit are the most notable challenges facing young entrepreneurs today. This is because most business ideas need capital to be actualized. Red tape in business registration and the myriad of licenses and certificates required to register a business are also a hindrance.” Now an established entrepreneur, Mwita is partnering with multinational contractors to spruce up his portfolio.

Construction boom

The future of the company, he says, is very bright. He has positioned it well so that it can benefit from the construction boom in the country. “We are aiming at being the best local construction firm,” he says, adding that there are huge opportunities that the youth can exploit in the robust industry. Zacs construction is authorized by the regulator, the National Construction Authority to undertake projects of up to Kshs50 Million. He ensures that the highest levels of quality assurance are maintained in all his projects, especially at a time when the grip has been tightened by the regulator to stem out unscrupulous contractors. In the recent past, hundreds of people in Kenya have perished following the collapse of buildings under construction, a result of sketchy work from contractors. “Quality is our hallmark,” states the young entrepreneur. He advises his peers to focus on their strengths and to never give up, adding that persistence, zeal and passion eventually yields good results.

Celebrating Young Entrepreneurs

Locally manufactured solar powered lamps.

Evans Wadongo, a social entrepreneur.

EVANS WADONGO: WE CAN USE TECHNOLOGY TO SOLVE PROBLEMS IN OUR SOCIETY

Growing up, he strained to read by the dim light of a kerosene lantern. Now he’s making solar powered lanterns which he uses to spur economic development By Amos Wachira

vans Wadongo is a social entrepreneur, an adviser for social development programmes, a mentor and investor in new and innovative ideas. He is extremely passionate about youth, women and sustainable socioeconomic growth in developing countries. Social enterprises are businesses that achieve specific social objectives, and whose profits are principally reinvested in

the business for the social objectives that it pursues, rather than distribution to its shareholders. Wadongo’s innovation, -solar powered LED lamps, is spurring economic transformation across various villages in Kenya and Africa. As a child, Wadongo struggled to study by the dim, smoky light of a kerosene lantern that he shared with his four elder brothers. His eyes were irritated, and he was often unable to finish his homework.

“Many students fail to complete their education and remain poor partly because they don’t have good light,” says Wadongo.

Breaking big

As a student at the Jomo Kenyatta University of Agriculture and Technology (JKUAT), he happened to see holiday lights made from LEDs and thought about what it would take to bring LEDs to small villages for general lighting. Armed with a brilliant idea, he took up a leadership training course from a nonprofit group- Sustainable Development For All, where he designed a manufacturing system for portable LED lamps that could be recharged by sunlight. Christened “Mwanga Bora” Kiswahili for “Good Light”, the lanterns are founded on the patriotic sounding “Buy Kenya, Build Kenya,” slogan which he supports. The lamps are made in local workshops with scrap metal and off the shelf photovoltaic panels and LEDs. “I started the venture with my Higher Education loan before joining the NGO so as to reach as many people as possible.” Wadongo feared that the technology would be less successful if the lamps were simply given to people who had no financial stake

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in them. Each lantern normally costs Kshs 2000, which is out of many villagers’ reach. So he uses donations to provide initial batches of lamps to villages. Residents are generally quick to see the value in the LED lamps because of the money they save on kerosene. Wadongo then encourages them to put the resulting savings into local enterprises.

Target market

“We targeted youths and women’s groups who we trained on business skills and micro enterprises and they were able to start small businesses after selling the lamps,” says the soft spoken entrepreneur. Currently, many of these lamps are already on sale commercially and others are increasingly making their way into villages in poor countries. Looking back now, he is happy with the economic and social transformation that his enterprise has brought in various villages. “It is not the number of lamps we distribute that matters. What really inspires me is the change that they are making,” says the award winning entrepreneur.

I always insist that the youth should be patient with any endeavour they choose to undertake most of them want to be millionaires overnight

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the 27 year old entrepreneur has received numerous awards and honours including CNN Top Ten Hero, Outstanding Social Entrepreneur in Africa at the Africa Awards for Entrepreneurship, Man Who Changed the World by Mikhail Gorbachev, Pan Commonwealth Youth Award, Olympic Torch Bearer, Named among the 35 under 35 top innovators by MIT Technology Review, Finalist of Innovation Prize for Africa, Finalist for Humanitarian Hero Award, named among ‘30 under 30’-Africa’s best young entrepreneurs by Forbes, among many others

Wadongo is also changing lives with the jobs he is creating for manufacturers. In Nairobi’s Industrial Area, young men fabricate the lamp housings. Some of the lamps are then completed in the kitchen of a rented house in the city. “We are trying to create Pan African companies that can address the problems that our people face,” says Wadongo. Despite this positive impact, Wadongo says that heading a social enterprise has its own basket of challenges. One of them is accessing financing. As a social enterprise, getting funding from commercial banks is a big hurdle, but Wadongo has established a number of nonprofit organizations which help him raise funds. Some of these are GreenWize, Sustainable Development For All, Wadson Ventures, Brevlam Technologies Limited and Jawabu Kiota Limited. “There are policy issues that the government needs to address especially around local manufacturing,” he says. Over time, the government has been criticized for giving special preference to foreign investors while ignoring local investors and entrepreneurs, he says. The policies seem to favour foreign investors by giving them tax incentives. For local

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manufacturers who import components, like him, the imports are taxed and thus no incentives are given to encourage them. Wadongo also decries the current trend of politics of “poverty” where leaders request to be voted in so as to bring development to the people only for them to change tact later, making the locals survive solely on handouts. According to him, the government should highly encourage local production so as to create more jobs. Wadongo now heads Sustainable Development For All, the NGO that gave him his leadership training, and he is positioning it to expand the lamp production programme. The company has made and distributed 32,000 lamps and is poised to increase that number dramatically by opening 20 manufacturing centres in Kenya and Malawi. Wadongo says that teams in those centres will independently manufacture not only the lamps but also other creative products. Locally, he mentors the youth in major international conferences, schools and colleges around the world, tackling issues such as education, social development, energy, youth and women empowerment, business in Africa, innovation, sustainability and climate change. For his positive impact to society, the 27 year old entrepreneur has received numerous awards and honours including CNN Top Ten Hero, Outstanding Social Entrepreneur in Africa at the Africa Awards for Entrepreneurship, Man Who Changed the World by Mikhail Gorbachev, Pan Commonwealth Youth Award, Olympic Torch Bearer, Named among the 35 under 35 top innovators by MIT Technology Review, Finalist of Innovation Prize for Africa, Finalist for Humanitarian Hero Award, named among ‘30 under 30’-Africa’s best young entrepreneurs by Forbes, among many others. “I always insist that the youth should be patient with any endeavour they choose to undertake. Most of them want to be millionaires overnight,” he says, advising them to take advantage of rising opportunities in the education, health, energy and agriculture sectors. “They can use technology to come up with solutions to problems that affect many people,” he ends.

Skills Development

Prof. Wamukoya says that the mismatch between what is offered at the universities and what is required at the job market is a major challenge facing higher learning institutions in the country. “As for Zetech, we are concerned about this and we have put up policies to ensure that for every course there is internship.” “Our cutting edge lies in the way we teach, follow up our students and cultivate good working relationships among students, management and staff.” Besides, the institution has established linkages with other institutions whose faculty are invited to talk to students and staff.

The new Zetech Campus in Ruiru. Since inception, the university has been strong in information technology and business related courses though it has opened doors to other programs as it seeks to create more access to education.

GOOD TO GREAT: Professor Edwin Wamukoya observes as students display their skills in information technology.

ZETECH GOES FROM GOOD TO GREAT

By Amos Wachira n Ruiru, an iconic building overlooking the newly built Thika Superhighway houses one of the fastest growing learning institutions in the country.

Zetech University’s main campus building which was put up at a cost of Kshs500 million is not only a marvelous sight but also an epitome of the institution’s runaway success. Miles away from the magnificent campus is a small room at the University of Nairobi’s halls of residence, where the idea of establishing the institution was first mooted in 1997. Back then when computers were fairly new in Kenya and few people knew how to operate them, Ken Mbiuki, then an engineering student at the university, was fascinated by them. Unlike most of his classmates, he knew how to operate computers. After witnessing the challenges that fellow students were grappling with when typing

and printing their assignments, he bought a computer and rented a small room at Summit house near the university to extend printing and basic computer skills to fellow students. Due to the high demand for computer courses, Mbiuki would later add the number of computers, and consequently rent more rooms as his “classrooms” expanded at a high rate. Within months, the classrooms had turned into a school as more students trickled in to seek his services. This was the birth of Zenith Technologies; a private college that initially offered purely I.T. based courses and has gradually grown over the years. In 1999, Ken Mbiuki leased office space in Summit House and registered an academic institution under the name Zetech College - a fusion of the words ‘Zenith and Technology’. Five years down the line and the institution was growing in leaps and bounds. In 2005, Zetech opened another campus in Nairobi’s

Some of the international examining bodies that Zetech collaborates with include Institute of Commercial Management (ICM), City and Guilds, Association of Business Executives (ABE), Chartered Institute of Marketing (CIM) among others. central business district. Church house campus and Agriculture house campus opened doors to students as demand for space, especially as a result of the expansion of other private institutions, outstripped supply. In 2011, the institution opened the Westlands and Pioneer house branches.

Fast growing university

Fast forward to 2014, and what started as a single classroom with a solitary computer has morphed into a fast growing university. Headquartered in the imposing Ruiru campus, the learning institution is now raring to fight with the giants. In August this year, Zetech University was accredited by the Commission for University Education to offer degree courses after making the transition into a fully fledged university. What has necessitated Zetech’s meteoric rise? Professor Edwin Wamukoya, the Vice Chancellor of the university attributes this growth to the institution’s penchant for quality education. “As the college expanded, it opened doors to international examining bodies as the directors looked into ways of helping students scale the academic ladder,” offers the vastly experienced educationist.

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Locally, Zetech is the examining center for Kenya National Examinations Council (KNEC) and KASNEB.

This offering has undoubtedly made the institution soar from strength to strength. Since inception, more than 50 000 students have passed through Zetech while at least 25 000 have since graduated with certificates, Diplomas and degrees from the institution. Currently, over 7000 students are undertaking different courses in the institution which now boasts of four campuses in and around Nairobi.

The university, says Prof. Wamukoya, has invested heavily in information technology. This explains why the institution continues to attract thousands of students in the areas of business and I.T.

Despite the efforts by private institutions like Zetech University to bridge the gap in the education sector in the country, tertiary education remains out of reach for many students, mainly due to the high costs of degree courses in the universities. Zetech University has found a novel way of addressing this problem.

Variety of courses

Lowest priced programs

Today, the university offers a wide variety of courses ranging from certificates and diplomas in engineering, mass communication, community development and early childhood development among other courses. To further strengthen its core mandate of offering affordable education to Kenyans, Zetech entered into a partnership with Jomo Kenyatta University of Agriculture and Technology (JKUAT) to offer degree courses to its growing student population. Since getting the letter of interim authority from the Commission of University Education, Zetech has now been given a green light to offer three degree courses namely Bachelor of Business Administration and Management, (BBAM), Bachelor of Business Information Technology (BBIT) and Bachelor of Science in Information Technology (BSc. I.T).

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By offering high quality programs at affordable rates, the institution has undoubtedly complemented government’s efforts to improve uptake of tertiary education in the country. “We have made higher education affordable to many as our programs are the lowest priced in the market,” shares Prof. Wamukoya. This has primarily been necessitated by the fact that the institution does not tie admission to availability of bed space, in sharp contrast to the current trends especially in public universities. The institution provides accommodation to some of the students. To effectively accommodate all, Zetech helps the students get accommodation near the campuses and organizes the local community to provide the same.

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“We are also keen on extra curriculum activities as we want our students to be all round educated. We are strong in rugby, soccer, music and drama, basketball and many of our students get scholarships to pursue this.” The university has produced top notch talents in the areas of sports. Currently, a number of rugby players in the national 7’s aside team are Zetech students. At Zetech, entrepreneurship programs are also in the offing. Under this program, students come up with ideas whereas the institution helps their enhancement through incubation. The university, which has just entered the big league, seeks to implement a ten year strategic plan which will see it establish more campuses in the counties as well as increase the number of courses as it eyes a market leader position in the near future. To this end, the university is already developing a new campus in Kajiado County and plans to built a billion shilling fifteen storey campus in Ruiru are at a developed stage. Besides, new courses are set to be introduced in the near future. These include Bachelor of procurement and supplies, Tourism management, and bachelor of hospitality management. At the moment, the newest university is bracing itself for bigger success as demand for quality education escalates.

Prof. wamukoya’s Bio:

Professor with over 35 years experience Has taught at a primary teachers college Has taught in a diploma teachers colleges including Mosoriot and Moi Science Has lectured at Kenyatta University for 25 years. Has published works including journals and books.

Career Growth

Career Growth Desperate on what to do, he got a job as a house boy in Nairobi, through the help of his uncle. “I worked as a house boy for a year. I had saved some few coins hoping to secure my secondary education.” His unrelenting character saw him join form 1 at an advanced age to pursue his dreams. Unfortunately, he could not continue with his studies as he had saved just enough fees for a one term.

AMBITIOUS: Gidion Muthini at his office in Nairobi.

OTOMS ENTERPRISES: HOW A FORMER HERDSBOY BUILT A THRIVING INTERIOR DESIGN COMPANY He once worked as a herdsboy and a house boy, but Gidion Muthini did not let this dampen his spirit. Today, he heads Otoms enterprises, an interior design company that he founded By Amos Wachira

ucked inside a row of sheds along Workshops Road in Nairobi is a small workshop that is hard to spot. In an area that is densely populated by students from The Technical University of Kenya, Otoms Enterprises can pass for a shop or a printing hub like any other that dot the area. Yet the small establishment is known in a big way by most corporate organizations. Inside, Gidion Muthini, who owns the firm, is busy taking orders and preferences

from his clients. He is an interior designer who has created a niche in the corporate sector by giving exceptional interior design services to his clients. Having worked with big clients like Safaricom, Direct Line Insurance, I & M Bank, Text Book Center and Clinton Foundation among others, Muthini knows very well that it takes sheer grit to make a name in the industry. It is for this reason that he works hard to ensure that his clients are happy.

Herding goats

Though a big firm now, Muthini says that it has taken resilience and hard work to get to the top. Having come from a poor background, he has worked relentlessly to establish himself in the highly competitive field. Early in his life, he could not study as his parents wanted him to herd their goats in Ndauni village, Machakos, where he was born. It was only after the intervention of the area assistant chief that he was allowed to join school at class one, having missed nursery school. Muthini knew from an early age that education was the key to success. He therefore worked very hard in school in a bid to have a successful life, despite the challenges that almost dimmed his determination. “After sitting for my CPE exams, I could not continue to secondary school though I had attained good grades to join a national school. My parents had no fees and they had given up on me,” he narrates.

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“I dropped out and joined Kithaayoni Polytechnic where I trained as a carpenter. I had to work hard to catch up with other students since I was late by one term,” he recalls.

MAGNIFICENT: One of the ceilings made by Otoms Enterprises.

After working hard in school, Muthini finally graduated as a carpenter grade 3. However, due to lack of fees, he could not continue with his studies.

That was the birth of Otoms Enterprises, a company that offered interior design and painting services targeting a wide range of sectors in the market.

“My dad summoned me to go back home where he blessed me after promising me that he had no more to offer to me. I went back to Nairobi to live with my uncle who encouraged me to look for a job despite the fact that my elder brothers argued that I should go back and take care of my father’s cattle.”

Otoms Enterprises Ltd was incorporated in 2008.

“Due to our hard work, high profile companies started giving us interior works.” This put the company on a growth path where it introduced more services like partitioning, tiling, electrical works and plumbing jobs into its portfolio.

Muthini says that getting qualified artisan s is also a problem as many people shy away from making a career out of interior design despite the huge benefits.

Now dejected and almost giving up on life, Muthini’s defining moment came when a friend secured him a job with a Tanzanian contractor where he honed his skills in interior decorations.

“Our works have made us evolve to a fully fledged interior specialist. Our commitment to excellence is exemplified by the pride we take in our finished product. We know that each project affects our reputation and prospects of future work and this explains our success in the interior design industry,” says a confident Muthini.

Quality of work is what sets us apart, he says, adding that as a company they ensure that the customer is happy.

He would later join Alvik Joinex, an established construction and interiors company where his star would rise tremendously. “I started as senior fundi before being promoted to a site supervisor due to my hard work,” he says adding that the skills he got from this company helped him set up his own firm years later. Fortunately for him, his employer wound up in 2003 after struggling with financial difficulties. Though he had requested for an early retirement, he pounced on the resultant opportunity and vowed to fill a gap that the company had left.

First job

This marked the start of his entrepreneurial journey that kicked off in 2003. Muthini says that he started his enterprise with no capital. “I partnered with a friend and we used our contacts to land our first job.”

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Today, his company offers a wide range of services besides interior design. The services include partitioning, ceiling works, tiling works, masonry works, painting jobs, decorations, special effects, plumbing, electrical works, Joinery works, general maintenance services and renovations and home and office furniture making.

Chinese imports

Muthini cites the infiltration of cheap Chinese products like furniture as the biggest challenge that he grapples with daily. “We should all aspire to buy Kenyan made materials and build our country. The cheap products are eating into our business.” Competition from quacks and briefcase entrepreneurs is another challenge facing the industry.

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He says the quacks always do a shoddy job at low prices. “Some clients do not pay at all. We have to wait for a long time to get paid and this gives us problems with cash flow.”

What it takes to be a successful interior designer

Exceptional service

“At Otoms Enterprises, we believe that our job is not complete until we have a satisfied client. We look forward to establishing long lasting working relationships through exceptional service and fulfilling the commitments we make to you, our valued customer,” offers Muthini. So far, his company has worked with clients in the corporate sector who have helped him build confidence in the area. They include Safaricom Limited, Direct Line Insurance, I & M Bank, Clinton Foundation, Dyer and Blair Investment Bank, Carrer Connections, Text Book Centre (all branches), African Banking Corporation Bank, Manix Limited, Igeria & Ngungi Advocates, Home Africa and the Sarit centre management. To ensure that he gives the best to his clients, he trains newly hired Fundis. Muthini is bullish about the future of interior design industry and opines that despite the challenges there is a great potential in light of a construction boom that the country is enjoying.

THE 2014 CITI MICRO-ENTREPRENEURSHIP AWARDS

Annual event to award outstanding micro entrepreneurs held as competition gets stiff with more entries and brilliant business ideas By George Gichuki

Moreover, the judges looked at the impact of the businesses on the communities they operate in. “ In that respect, the members assessed whether the business had introduced new products and created markets, injected money in the community as a buyer of locally available raw materials or whether its operations are friendly to the environment,” observes Karanja. Of critical importance, the enterprise’s financial discipline was also put under serious scrutiny by the judges. “Under this criterion, they assessed whether the business services its loans on time and keeps its accounts records professionally, or if it can demonstrate cash flow, revenues, expenditure, profit and loss as well as growth in earnings and retained capital for re-investment into its expansion,” she further says. The final criterion was the sustainability of the business under which the judges assessed whether it is registered and structured to last and outlive its owner. In the same vein, they evaluated if the said business can be run by other people in the proprietor’s absence.

Overall winners (Extreme left) Kenya Women Microfinance Bank MD, Mwangi Githaiga and other staff members celebrate the victory of their customer, Hellen Awino (dressed in a red trouser suit) a gold winner in the 2014 CMA.

or the third year running, the Citi Foundation in partnership with the Association of Microfinance Institutions (AMFI) successfully organized the Citi Micro-entrepreneurship Awards (CMA) in the country. The inaugural event was held in 2012. This is a global programme which is funded by the Citi Foundation and this year, it was held in thirty three countries. It was launched in 2005 with the objective of raising awareness about the importance of micro entrepreneurship and microfinance in supporting the financial inclusion and economic empowerment of low income individuals. “The Citi- AMFI partnership is a commendable approach that recognizes innovative micro-entrepreneurs who utilize microfinance facilities to grow their businesses, besides impacting positively on their families and communities by creating employment opportunities and generating incomes,” says Lydia Kibaara, the general manager, Remu Microfinance Bank and a board member of AMFI. “Moreover, the awards boost the self esteem of these enterprising and innovative individuals who are rarely celebrated by the society despite the invaluable role they play in its transformation,” she adds. The judging criteria “The Citi Micro-entrepreneurship Awards categories are split to accommodate

micro- entrepreneurs in manufacturing, agriculture, trade and services sectors,” says Carol Karanja, the programme manager, membership and capacity building, AMFI. This year, nominees were among other areas judged on whether their businesses were innovative. In this regard, the panel took into consideration whether their businesses had devised new means of achieving business goals by for instance reducing the time it takes to carry out a task or a process, wastage and inefficiency , besides saving energy , employing better customer service practices, automating their operations and efficiently making use of information communication technology ( ICT). The other criterion of judging was business growth. “ In that respect, the team assessed whether the business had registered any growth in sales , assets and turnover or expanded into untapped territories and production facilities since its inception,” adds the programme manager. Thirdly , the nominated businesses were evaluated in relation to the number of jobs they had created over time, their source of labour and its level of skills, the gender ratio and whether they had grown from sole proprietorships to well structured organizations employing nonfamily members with diverse professional skills.

The micro-entrepreneur who clinched the overall award (platinum) was Moses Gitonga Ntiritu of 3D Animation Company- a client of Letshego Kenya Limited. On the other hand, the microfinance of the year was Jubilant Kenya which is based in Mombasa. It won because of its outstanding services to people with disabilities, funding talents and forming virtual groups.

Mentorship Programme

This year, a mentorship programme to support past awardees was launched. “Its purpose is to appreciate the dynamics of micro, small and medium enterprises in terms of definition, classification and ambitions to grow,” says Karanja. “Besides, it examines the soundness of the entrepreneur’s business idea (the offer and market focus) in relation to his or her peer who has already walked the path,” she adds.

Major achievements

Since its inception in Kenya in 2012, the Citi Micro entrepreneurship Awards (CMA) programme has raised awareness about microfinance, particularly among micro entrepreneurs and regulators who have influence over the expansion of the industry. This has gone a long way in spurring the formulation of policies which are aimed at building a more inclusive financial sector and laying the foundation for a flourishing microfinance industry. In addition, the programme has raised awareness regarding the important role that micro entrepreneurs play in their local economies by highlighting to the world their contributions and talents.

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50. Letshego Kenya Limited 60. Remu Microfinance Bank

The Citi Micro-Entrepreneurship Awards

Feature

The CEO who began his career as an intern at Kenya Women Finance Trust in the mid 90s is confident that if entrepreneurs countrywide are recognized, it will help ignite the spirit of entrepreneurship, competition and success. This in turn will be the foundation of industrial and agricultural success.

LETSHEGO KENYA LIMITED (MICRO AFRICA): RE-

“As a case in point ,the Chinese government is massively engaged in supporting micro entrepreneurs who successfully launch large companies that create many jobs and as a country, there is a lot we can learn from this model,” he advises.

DEFINING THE ROLE OF MICRO FINANCE INSTITUTIONS

Road ahead CBK Governor Njuguna Ndungu (L) gives an award to Moses Gitonga of Bluesplyne studios(3rd right) during the 2014 CMA as Letshego Kenya Limited CEO Charles Njoroge looks on.

A microfinance institution that humbly reengineered itself in the year 2009 has grown in leaps and bounds and has taken the industry by storm after producing top performers in the 2014 Citi- MicroEntrepreneurship Awards (CMA)

He encourages clients who were recognized in the CMA to act as mentors for emerging and potential entrepreneurs who sometimes remain unrecognized despite being innovative and working hard in their daily business activities.

By Anthony Kiganda

Secret to success

ecently, Citibank and the Association of Micro finance Institutions (AMFI) partnered to fete outstanding entrepreneurs drawn from the membership of the latter. Letshego Kenya Limited, a leading credit only microfinance institution in Kenya participated in the event and produced many awardees. Letshego Kenya Limited is an active member of AMFI. The institution offers a diversity of innovative financial solutions to Kenyans that among others include construction loans, plots acquisition, business loans, water tank loans, clean energy loans (such as biogas and solar ) to both groups or individuals who are self employed or employed in either the public or the private sector in Kenya. The institution had participated in the previous events and according to chief executive Charles Njoroge, the lessons learnt enabled them to map out a winning strategy by ensuring only those customers who had passion for what they do, were unique in their own right and were yearning for success participated. Letshego Kenya Limited is now a wholly owned subsidiary of the Botswana-based Letshego Holdings Limited Group. Letshego Holdings Limited is listed on the Botswana Stock Exchange with a market capitalisation in excess of US$650 million (KES59 billion),

Before lending to its clients, Letshego assesses the ability of the business to pay, character of the individual, potential for growth and the enthusiasm to succeed. By and large, this has contributed to the fast growth of the organization and the excellent performance in the 2014 CMA clearly attests to that. MAN AT THE HELM: Charles Njoroge CEO, Letshego Kenya Limited. with operations in 10 African countries. The Group has spurred growth in Letshego Kenya operations through strategic and operational support, and is focused on building a leading African financial services group, whose promise is to act as a preferred partner in financial solutions, remaining committed to improving lives.

Improving lives

“The awards were open to all members of AMFI and we thought it was important to encourage as many clients as possible to come out and tell the world and specifically Kenyans what they do and how they do it,” says Njoroge. “Over the years, we have been engaged in transforming lives by providing financial solutions as a micro lender innovatively and working with our customers to meet

their aspirations and vision. The awards therefore fit in very well with what we do as an institution all the time and that is recognizing success and working with the clients to mutually succeed further,” he adds.

Motivation

According to the chief executive, the winners will act as a reference group to many clients and have a role and an obligation not only to succeed in what they do today, but further motivate their peers in urban and rural Kenya to work hard so as to gain recognition in the highly competitive business sector in Kenya. “They have set the bar very high and hopefully, others will follow suit,” says the CEO who is also referred by his team as ‘captain’ following his ability to lead the micro lender to success.

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“Our success is a function of our passion to succeed, transform lives of those we offer financial solutions to and work and walk with them to success. Success is a team effort and frankly it is a sum total of our engagement: staff and customers coupled with the mutual desire to succeed and especially pulling in the same direction. It’s a daily engagement and struggle, but one where failure is not an option. Our options are only two – succeed or succeed. No one succeeds alone in microfinance, ” Njoroge explains. He says that the brilliant performance has provided mutual motivation and recognition among the staff and clients. As an institution, Letshego Kenya has been able to demonstrate that it finances champions and works hard to develop them. It is against that background that the leading microfinance institution incorporates credit with education in its lending process. “Our success as an institution is anchored on how we juggle our strategic initiatives

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of customer experience, stakeholder engagement, innovation, risk management and people development. These go hand in hand. The awards confirm that these pillars have worked to transform our lending in Kenya,” says the CEO who also sits in the board of AMFI and chairs the membership committee.

Celebrating our achievers

However Njoroge is not satisfied with the way Kenyans celebrate their successful sons and daughters. “As Kenyans we have been able to produce award winning innovations like M-Pesa, great sportsmen like Paul Tergat and even scholars like the late Prof. Wangari Maathai who won the Nobel Prize,” he says. “Nevertheless, we have not accorded them the recognition they rightly deserve,” he adds. All the same, these awards take a long term view of the winners. The sponsors and the lender will work with them to develop their potential further by supporting them succeed through business mentorship.

Our success as an institution is anchored on how we juggle our strategic initiatives of customer experience, stakeholder engagement, innovation, risk management and people development. 2014 BIASHARA LEO

“This rebrand is a major boost to us as we will have more capital to operate with as we strive to offer more innovative financial products to our existing and potential clients. The move will also help us acquire diversified skills beyond our borders which is in line with our goal of creating a panAfrican lending institution,” he adds. The Kenyan entrepreneur will ultimately be the winner. Letshego has also embraced information technology in a bid to enhance its services. The lender is using money transfer services like M-Pesa to serve its clients. This in turn has enabled it to be more efficient in its service delivery. Njoroge observes that the financial industry in Kenya is one of the most competitive in the region. One therefore needs to understand his niche market, embrace healthy competition and always think outside the box. “As a company we aim at remaining a market leader and a partner of choice in the provision of innovative, profitable and customer focused services. Ours is provision of financial inclusion while striving for a double bottom-line. We must pursue impact as we endeavour to build shareholders value. Our commitment to pursue this goal remains very clear.” He says that at Letshego they are clear on their values and the institution culture is shared across the team. Success is a choice for them. “We have defined our journey and we are working hard to deliver on our promises,” says Njoroge who is also a board member of the micro lender. “In that regard, we are planning to transform to a microfinance bank in 2015 so as to expand our product offering which will include mobilizing deposits from our customers,” he ends.

The Citi Micro-Entrepreneurship Awards

Ours is not only about lending, but going an extra mile to know if the credit is making any meaningful impact on our clients From left: CEO Letshego Kenya Charles Njoroge, chairman Kungu Gatabaki and board member Dr. Edward Sambili. awards. According to Gatabaki, this achievement displays the organization’s commitment to include its clients in most of its undertakings. “We focus on financial inclusion and establishing a partnership with our clients thereby creating mutual relationship,” he says.

Kungu Gatabaki, the chairman of Letshego Kenya Limited board of directors.

Going an extra mile

HOW LETSHEGO KENYA LIMITED (FORMERLY MICRO AFRICA LIMITED) SEEKS TO DEEPEN FINANCIAL INCLUSION

Chairman of Letshego Kenya Limited seeks to lead the micro lender into a pan African institution with clients’ needs at the centre of product development Anthony Kiganda

ood governance especially in financial institutions is about achieving corporate goals. It involves effecting guidance to the board of directors with an ultimate goal of promoting growth and profitability. Kungu Gatabaki who is the chairman of Letshego Kenya Limited’s board of directors says quality leadership cannot be overemphasized. He notes that

successful companies are a product of good leadership. He has been the chairman of the leading microfinance institution for eight years where he says transparency and integrity are the order of the day. Letshego is a giant micro lender based in Botswana and operates in several African countries. The micro lending titan has acquired majority shares of Micro Africa Limited. The latter intends to stage a major event next year to announce the rebrand.

According to Gatabaki they will work to ensure that their clients understand the mission and goals of Letshego. This critical development means that Letshego Kenya will now have access to a huge capital base to finance its activities.

Financial inclusion

Most microfinance institutions often borrow from local commercial banks and wholesale lenders hence making their credit expensive. It has been argued that high lending rates by financial institutions in Kenya is hindering the youth from starting businesses, but Gatabaki seeks to differ. “Those who succeed have a certain discipline on how they invest the money they receive from us,” he expounds, adding that Letshego Kenya intends to revolutionize the microfinance industry by putting its clients at the centre of every product it provides. As the chair of the organization, he has witnessed the micro lender rise from a humble beginning to its current glory. In the recent Citi Micro Entrepreneurship Awards, it many of its clients clinched

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The former Actis executive says that contrary to other lenders, Letshego Kenya issues credit and makes a follow-up to check on the development of its clients. “Ours is not only about lending, but going an extra mile to know if the credit is making any meaningful impact on our clients,” he adds. When need arises, the micro lender offers basic training to its clients on how to prepare simple financial statements. They even advise on alternative ventures in the event that one business project fails to succeed. The lender seeks to change the trend common with other financial institutions where the youth are financed as groups to establish businesses.

We focus on financial inclusion and establishing a partnership with our clients thereby creating mutual relationship

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“Sometimes, group dynamics do not work and when businesses fail to pick, banks auction their hard earned property to recover their money. This move make them even poorer,” explains Gatabaki The chairman observes that Letshego Kenya might consider listing in the near future at the Nairobi Securities Exchange but that will be considered in the wider context of the lender’s African strategic goals.

Listing at the NSE

Companies find it an uphill task to get listed at the NSE due to strict regulations put in place. A company must first get approval from regulatory bodies like Capital markets Authority, Competition Authority of Kenya and Central Bank of Kenya. Some companies also find it difficult to disclose their financial statements. Additionally, failure by many companies to keep a good track record on governance has proved to be a major hindrance. It is against this backdrop that the NSE launched Growth and Enterprise Market Segment (GEMS) in January 2013 to enable small and medium firms raise their profile and capital to upscale their operations. But those SMEs that succeed to list at the NSE, gain enormously in terms of capital as they are able to float shares. While the issue of transparency and accountability may be elusive to many companies, listed ones must maintain the highest degree of integrity.

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Upholding ethics

Gatabaki describes Letshego Kenya as being founded on immense ethics and responsibility. While working as chairman of the CMA, he was vocal against the corrupt nature of some corporate organizations who would swindle money meant for shareholders under the guise of undertaking corporate social responsibility initiatives. As a credit only micro finance institution, the lender has been able to contend with many obstacles. In 2008 the then Micro Africa bore a fare share of the effects of post election violence. Many of the clients, who were greatly affected by the skirmishes, were unable to pay and their loans were written off. However, the lender dared to dream big.

Deposit taking route

The chairman notes that even as Letshego Kenya intends to become a deposit taking micro finance institution in the near future, it seeks to create a clear difference from other banks by ensuring that the savings ultimately benefit its clients. The acquisition of Micro Africa by Letshego has enabled the micro lender to attract other local and international lenders as they now consider it stable. In the recent past, the lender has been borrowing from local banks that often issue loans with conditions that are unfavourable to microfinance institutions. “We have a clear goal of where we are going, our intention is to change the status quo in regards to lending and create opportunities to our clients, especially young entrepreneurs,” he ends.

The Citi Micro-Entrepreneurship Awards

Gitonga reckons that 3D animation pays but Kenyans still do not appreciate the technology. He wants various agencies and stakeholders to carry out awareness campaign on the benefits of embracing the technology. He says that many jobs could be created if Kenyans support the industry. Bluespyne now seeks to exploit the opportunies available in three dimension animations in the country to become the market leader.

3D animated images animation job and like many upcoming businessmen, he needed a loan. He says that he visited many banks that refused to finance him unless he provided collateral. Central Bank Governor Njuguna Ndung’u (left) is joined by Joyce Anne Wainaina, CEO, Citi bank in presenting the platinum award to Moses Gitonga (centre) during the 2014 CMA.

MOSES GITONGA: HOW RESILIENCE AND PASSION PAID OFF FOR 3D ANIMATOR A passionate animator who started off as a banker scoops The most coveted prize in the Citi Micro –entrepreneurship Awards ( CMA) and says more are on the way By Anthony Kiganda

oses Gitonga could not believe his ears after he was announced the best entrepreneur in 2014 CMA. The three dimension (3D) animation strategist additionally won two other awards; gold for the services and urban youth categories respectively.

was doing well and contributing to the development of our country, but the award came as a surprise to me,” says Gitonga. “I was nominated alongside more successful entrepreneurs than me. I was satisfied to win two gold awards but winning the platinum which is the top most prize was unbelievable,” says the young entrepreneur.

Gitonga is a business strategist at Bluesplyne Studios a company that is involved in 3D animation. The technology involves creating 3D moving images using computer software. These images are made with the use of digital models. After the models have been created, details like hair, clothing, skin, grass, trees, and other items are added to complete a scene.

The director at Bluesplyne Studios, Gitonga was a banker with K-Rep Bank before developing an interest in 3D animation and later enrolled for an animation course with a leading institution in Nairobi to equip himself with requisite knowledge. Little did he know that this was the turning point in his life.

‘I was nominated by Letshego to the award being one of their clients after sending my profile to them. I knew that my company

He says he was ready and willing too trade off his job with his passion for developing content. Although the three dimension

Entrepreneur par excellence

industry was largely unexploited in Kenya, the benefits outweighed the various challenges that inhibited its adoption. His job at Bluesplyne involves searching for business opportunities which he later present to his technical director for execution. Gitonga is also the brains behind two other companies –Digital works and world online orbituaries.com which operate under Digital Oasis, another company he co-owns. Online obituaries .com is a unique platform that allows people to post obituaries and send condolence messages online, a service that has sparked massive interest from Kenyans.

“I later met a loan officer of Letshego, Kawangware branch and shared my business plans with him. My loan application was approved without demand for collateral and I received Kshs. 300, 000 that I used to service my old machines and buy new ones,” says the animator. Gitonga now plans to take his 3D animation company regional and he hopes that Letshego will support his course. He says that his company would need Kshs. 100m to open branches across East Africa. The first project carried out by the Bluesplyne Studios was designing an artist’s impression of the Thika superhighway spearheaded by Kenya at 50 Secretariat which was received well. Gitonga thanks the then Information

and Communication permanent secretary Dr. Bitange Ndemo for encouraging him to engage in the business. “He urged me to steer the process, noting that the IT industry had enormous opportunities which Kenyan youths were yet to explore. He encouraged me to use the infrastructure laid by the Communication Authority of Kenya,” he says.

3D animation in Kenya

According to him, the expensive nature of the equipments used in 3D animation has discouraged many people from venturing in the technology. For example, the cost of basic software is Kshs. 0.5 million while a render box goes for Kshs. 1.5 million. The process of rendering is also timeconsuming as a 30 second clip would take 30 minutes to render. Rendering is a process of generating an image from a 3D or 2D model by means of a computer programme.

The company has been able to attract numerous clients among them financial institutions and local television stations. Among their monumental projects is an anti poaching feature they developed for the Kenya Wildlife Society that put them on the spotlight. Recently, the company developed the first feature film in Kenya. The story of Jonah is a film adopted from the Bible which was commissioned by Theo Vision International, a church organization. The film will be aired before the end of the year. His company now wants to exploit the opportunities available in three dimension animations in the country in a bid to establish itself as a top notch animator locally and in the East African market . This in turn will create jobs for the youth. Besides being awarded in the CMA, the successful entrepreneur has also been feted in the Rising Star award where he was among the five finalists.

Digital Works Limited on the other hand specializes in downloading love and inspirational messages for subscribers, and mobile dating services.

Giving back to society

Apart from his normal job, Gitonga also volunteers with Victorious Teens Bridge an organization that provides sanitary towels for school girls as well as offering his technical advice to Cheshire Disability Services a not-for-profit group that empowers people with disabilities.

A helping hand

“I thank Letshego for supporting my projects. I do not consider the microfinance institution as a mere lender but a partner,” says the 33 year old entrepreneur. “The award has given me media attention that has put me on the spotlight,” he adds.

The accomplished animator urges the youth to follow their hearts and dare to dream big. He calls on them to develop entrepreneurship skills and seek mentorship on what they are interested in.

Gitonga learnt about Letshego in the hard way. He wanted to buy a new machine that would enhance the services of his 3D

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“The other reason why the industry is not growing locally is due to lack of general information about animation on the part of Kenyans. Most people do not know how it works,” he says Due to this, most local animators end up being sub contracted by large Indian firms, a move that negatively affects the local industry

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The Citi Micro-Entrepreneurship Awards

put in place stringent measures to curb the unfortunate trend. “ It is emerging that some seed companies have increased penetration of counterfeit farm inputs such as seeds. The grains supplied to farmers result in poor yields or seeds that do not germinate at all,” he laments. The Kenya Agricultural Research Institute (KARI) has also ascertained through studies that roughly four out of ten seed packets in the country contain counterfeit seed, and three quarters of Kenyan farmers have planted fake seeds at some point.

Njiriri in his farm in Ndeiya, Limuru. Njiriri used some of the loan to buy a poultry incubator. He decided to invest in an incubator after experiencing losses since chances of eggs spoilage were high in a broody hen. Letshego Kenya CEO Charles Njoroge (2nd from left) presents a certificate to Moses Njiriri,a CMA gold winner.

MOSES NJIRIRI: REAPING HANDSOMELY FROM FARMING

The advantage of diversified farming is that it has enabled him to maintain steady and increased revenue, besides providing him with the opportunity to horn his skills and expand business contacts.

With financial support from Letshego Kenya Limited (formerly Micro Africa Limited), aggressive farmer is now an icon in Limuru sub county

Njiriri not only uses his farm as a business project but also as a training ground where farmers from neighbouring villages flock to get a glimpse of his farming prowess and borrow a leaf from him. It is from these field events that he received a visit from Letshego officers who toured his farm in June 2014.

By Anthony Kiganda

or quite a long time, farming in Kenya has been largely subsistence and a practice of rural areas, associated with the old and illiterate. But in recent years, this trend is changing. It has attracted highly educated and professional individuals. Moses Njiriri is a good example. When you visit him at his farm in Ndeiya, Kiambu county, one can easily see that he is going places. The accomplished farmer gives an amazing story on how he slowly changed his subsistence farming to an award winning agribusiness venture. Njiriri is not looking for a job now but even if he were to be hired, he says, he can only accept to be a mixed farming consultant. Today, he has no doubts that he will remain a farmer for life. According to him, the

returns in this occupation range between 30 to 45 per cent of the capital invested. Mostly, the money starts flowing in after investing for a period of only six months.

“I informed Letshego loan officers that I needed to expand my farming business but I had financial constraints,” adds Njiriri.

The owner of Kamigumo farm, Njiriri has built a business that has become a case study for aspiring farmers.

After a fact finding mission on his farm, Letshego decided to offer the farmer a loan of KSh200,000 without collateral.

“I ventured into agribusiness after carefully studying and experimenting on various crops and fruits in this farm before I finally discovered the ones that could do well in this soil,” says the diversified farmer.

“Most banks and lending financial institutions would normally ask you for a guarantor or collateral before you get a loan,” says the former Kenya Airforce officer. Josephine Wainaina, who is the acting manager of Letshego’s Limuru branch, says that they were moved by the activities at Kamigumo farm and wanted to boost it.

Diversified farmer

The farmer owns a 3-acre farm where he breeds all sorts of birds ranging from chicken, geese, ducks and doves. He also has livestock which includes dairy cattle, sheep and goats. He also engages in bee keeping.

“There are no chances of the hen damaging eggs through pecking, a common occurrence with natural incubation” he says. “The incubator has helped me plan for my clients who buy chicks from me. I am able to tell when the chicks will get hatched unlike natural incubation.” Kamigumo farm is also full of crops of every kind ranging from cabbages to kales and fruits including avocados, tomatoes and oranges. Njiriri proudly talks about two awards he recently won in the Citi Micro entrepreneurship Award. “Josephine Wainaina from Letshego asked me to try the competition. I did not know

I would win,” says the jovial farmer adding that the award has put him in the public domain.

Award winner

He won the rural farmer category and overall agriculture category in a colourful event that was held in Sarova Stanley in Nairobi. CMA is hosted jointly by CitiBank Kenya and the Association of Micro Finance Institutions. It recognises upcoming micro entrepreneurs in Kenya especially those who have put to good use the money they have borrowed from micro-finance institutions. Njiriri now urges the youth to embrace agribusiness saying that it is the best way to create employment and boost food security in the country. Like other business ventures, agriculture has challenges. For example, he has had to contend with counterfeit seeds, farm chemicals and fertilizers. The award winning farmer therefore calls on the government to

Way forward

Njiriri is confident that his future is bright. He considers Letshego as a partner of choice and recommends the lender to other farmers. He intends to launch a training centre in his farm where the youth and interested parties would gain invaluable knowledge on best farming practices. Additionally, he is negotiating for a one million Shillings loan from Letshego to finance his expansion plans. Mid this year he identified a farm in rural Kiambu that he intends to lease with the help of Letshego. He intends to take his farming a notch higher. “We urge the government to support small scale farmers in order to encourage other people to engage in farming,” he urges. Although Kenya’s economy largely relies on agriculture, the number of people practising farming is dwindling each year according to government surveys. Most people consider it outdated and unprofitable. Njiriri was once a Kenya Airforce officer but his career was cut short when he was jailed for 6 years following the abortive 1982 coup. But this did not deter him from achieving his dream of living a successful life. He later tried several small ventures before making up his mind and settling on farming. He urges entrepreneurs to remain focused and enjoy what they do.

“We were encouraged by his farming business and the professionalism involved,” says Josephine.

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Unpredictable weather has also been affecting farming in Kenya. To counter this, Njiriri relies on cassava and sweet potatoes in dry seasons because of their legendary resilience.

“Don’t let anything or any situation pin you down, you can rise above any challenge by sheer determination,” advises the successful farmer.

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The Citi Micro-Entrepreneurship Awards

scrap metals from gear boxes, rims, and cylinder heads. The Jua Kali industry usually depends on turning scrap into usable items. Reaping from such cheap but profitable raw material has not come without its challenges. In an attempt to curb destruction of public infrastructure, the Ministry of Trade banned the export of scrap metals from Kenya in 2010. Scrap metal dealers were accused of profiting from the vandalism of public infrastructure including fibre optic cables, roadside lamp posts and guard rails. The ban adversely affected Okengo’s business which shrunk in size and operation.

Breakthrough

Okengo was recently won in CMA in recognition of his prowess in entrepreneurship.

Okeng’o at work in his workshop.

Protas Okeng’o receives a gold award at the 2014 CMA.

PROTAS OKENG’O: TRANSFORMING SCRAP METALS INTO WEIGHING SCALES

An exemplary entrepreneur who has created employment for young artisans and with the support of Letshego Kenya Limited (formerly Micro Africa Limited), he is now set to go places

Anthony Kiganda ua Kali is a Kiswahili word which means ‘hot sun’. It is used to refer to informal manufacturing areas in Kenyan towns where mechanics, welders, carpenters and other tradesmen work under hot sun without the benefit of big workshops or heavy machinery. The industry was originally set up in the 1960s based on advice from the International Labour Organisation (ILO). It was considered a low cost way of creating employment and growing the Gross Domestic Product ( GDP). In the early ’90s, the Jua Kali sector was characterised by bare-chested men hammering away hard steel to create perfect shapes for home equipment

“I was encouraged by Letshego to compete in the awards. Little did I know that I would emerge top in the manufacturing category,” he discloses.

and utensils. The enterprise may be physically demanding but it has produced entrepreneurs who are running successful businesses. Protas Okeng’o Onywere is one such person. The artisan who hails from Kariobangi, has built a huge enterprise where he makes and sells weighing scales.

Humble beginning

It all started in 1999 while working at his brother’s workshop, where Okeng’o was helping him assemble scrap metals that were used to make the scales. A quick learner, he soon became a master of the job. “I had finished form four and was looking for employment. My brother invited me to

Nairobi where I joined him in his workshop,” says the Jupiter Scales and Engineers Services proprietor. His brother later had him train in repairing scales and metal services, to become a full time employee in his company. Soon, demand for the products rose exponentially, a move that prompted Okeng’o to start his own foundry. This was meant to help his brother with the raw materials required to have a complete manufacturing process. “It was a humble beginning, I never thought I would reach this far,” discloses the entrepreneur. Making the leap into starting businesses has become a major challenge for many entrepreneurs. They always have a reason not to get started but Okeng’o decided to make a bold and uncertain move. With Kshs. 10,000, he was set to start off. He built a small foundry where he was able to cast metals into shapes.

How it works

In order to make a desired shape, the liquid metal is poured into a mold. It is then cast after the metal cools and solidifies. The most common metals processed are aluminium and cast iron. However,

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other metals, such as bronze, brass, steel, magnesium, and zinc, are also used to produce castings in foundries. In this process, parts of desired shapes and sizes can be formed. In order to produce the desired shapes, casting should be carefully done. The process involves pouring liquid metal into a mold, which contains a hollow cavity of the desired shape, and then allowing it to cool and solidify. The solidified part is ejected or broken out of the mold to complete the process. Casting is most often used for making complex shapes that would be difficult to achieve by other methods. Okeng’o says that he has been lucky to have a key mentor in his family who is his brother. With his guidance, he has been able to steadily grow his enterprise. “I invited my cousin to help me with some of the job as our clientele had now increased and I was not able to meet their demand,” he adds.

Most banks shy away from startups because of their perceived risk. Determined to fund his business, Okengo approached one of his friends who introduced him to Letshego Kenya Limited (formerly Micro Africa Limited). Loan officers from the lender visited his workshop and after seeing the activities in his factory, they decided to give him a loan of Kshs. 200, 000. “I was not asked for security in order to get credit from Letshego. They approved my loan after visiting my workshop,” says the fast rising artisan. He used the money to buy new equipment and employ more workers. This enabled him to produce enough scales for his clients. But he was not yet done. To have a complete foundry he needed a machine that could make check weights. After paying the first loan, he approached Letshego for another one. A partner indeed, they gave him a loan of Ksh 680,000 that he used to expand his business.

He worked with his cousin for 5 years. His job was expanding and so he needed additional capital. In 2009, he began approaching several financial institutions for support.

Okeng’o urges financial institutions to help the young entrepreneurs by providing easy mechanism to access credit services for their businesses.

Working with Letshego Kenya Limited

Tough times

Okeng’o describes his efforts to get a loan as disappointing because many commercial banks refused to approve his request.

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Looking at a finished weighing scale it would be hard to tell exactly which raw material was used. Okeng’o says they use

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Since then, he has been receiving a lot of publicity and many clients visit him to get a glimpse of his innovation. He employs a total of 17 workers in his workshop. “Majority of my employees have families who depend on them,” he adds. In a bid to cut a niche in this market, the ambitious man has established an elaborate network of suppliers of raw materials who have enabled him to sell his products regionally. Moreover, in order to become a one stop shop for weighing scales, the industrious entrepreneur imports electronic weighing scales systems to cater for some of his customers. As a way of luring masses into buying his products, Okeng’o has opened a website where he showcases his products. He says he receives over 200 visitors on his website on a daily basis. In the near future he plans to open an enormous modern factory in industrial area. He hopes to supply weighing scales across Africa. He urges those wishing to establish this kind of trade and create an enterprise to get mentorship and training. Okeng’o also urges the government to support the informal sector as a way of creating jobs for the youth.

Microfinance

Microfinance three years. This will be characterized by opening of more branches and rolling out innovative products.” In this regard, Remu is using a scientific tool which it has developed in partnership with USAid to identify the most ideal locations of opening new branches. “We are expanding as per the needs of the clients and not to outcompete others,” he offers. In the recent past, most microfinance institutions have come up with innovative products as they seek to deepen the financial sector especially in the bottom of the economic pyramid segment , which is more often than not overlooked by mainstream commercial banks. Against this background, Remu has been in the forefront when it comes to fronting innovative products. With a wide array of solutions to the SME sector, the microfinance bank has cut its own niche in the market.

Consistently won awards

It is for this reason that the microfinance bank has been a regular award winner in the Citi Micro-entrepreneurship Awards which recognize outstanding entrepreneurs in the microfinance industry.

Peter Mugendi, CEO, Remu Microfinance Bank.

REMU MICROFINANCE BANK TO OPEN MORE BRANCHES AS IT AIMS FOR THE SKY Fast growing microfinance bank now seeks to implement its strategic plan that will see it embark on constant innovation and expansion By Amos Wachira

n the recent past, Remu microfinance bank has trained its eyes on an expansion blitz that is expected to shake up the local microfinance industry.

expansion programme earlier in the year, it set up the previously conservative microfinance on a roadmap to greatness. It is easy to see that the micro lender is raring to fight with the giants.

When Fusion Capital, a private equity fund injected Kshs. 60 million into the microfinance bank to kick start an

According to the bank’s chief executive officer Peter Mugendi , the organization will use both technology and conventional

distribution channels in its elaborate expansion drive which will start with the opening of an ultra modern branch on Kimathi street in Nairobi’s central business district before the end of this year. Currently, the micro-lender has three branches located in Nairobi, Meru and Maua. It is planning to grow the network to 30 within the next five years.

“The awards help shape and drive innovation. They recognize entrepreneurs and microfinance institutions in areas that are not necessarily central but integral in the overall development of their businesses including agriculture, nurturing women and youth enterprises as well as the ones operated by people with special needs,’ he says. Remu has twice clinched the special category awards (specifically in 2012 and 2013).

Expansion drive

Mugendi says that the awards help micro finance institutions not to recycle products but to respond to specific needs of the customers. In addition, they are a good profiling opportunity for industry players, as they seek to build their brands amidst the stiff competition from commercial banks and saccos. “ CMA has helped us to gain the confidence of the market by positioning us as credible financial institutions.”

“The current expansion drive is the first phase of our strategic plan which will take

Despite these gains, Mugendi says there is need for organizers to involve members of the industry in selecting the event’s panel of judges. “ A major trend in the industry currently is more transparency

“We are looking at unsettling competition by focusing on our specific segment which is growth oriented small and medium enterprises (SMEs). We will be responding to their needs through an innovation driven expansion.” Mugendi says that the microfinance bank has undergone massive reorganization as is seeks to implement its strategic plan.

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We have developed a product targeting the youth which is aimed at helping them build savings so that they can establish solid enterprises which can easily attract potential investors in our operations, given the regulated regime and sharing of information.”

Constant innovation

Entrepreneurial wave (especially among the youth) is today sweeping across the country. Consequently, most financial institutions have positioned themselves to help fund the numerous ventures that have been started by the youth albeit in an environment characterized by a myriad of challenges. Remu has not been left behind. “We have developed a product targeting the youth which is aimed at helping them build savings so that they can establish solid enterprises which can easily attract potential investors,” says the chief executive officer. To further meet the growing needs of the youth segment, Remu is banking on partnerships with likeminded organizations with a good track record in business . Generally, most lenders do not finance start ups because they categorize them as risky. Unfortunately, a good number of enterprises owned by the youth are in that stage and scaling them up is therefore a herculean task. “ The solution to this predicament is developing innovative products for the youth bearing in mind the unique challenges of their businesses,” says Mugendi. “ Our dilemma as financiers is that a young customer may request us to finance an idea which on paper looks very powerful but becomes a cropper at the implementation stage, while another maybe having what looks like a weak idea on paper, but which against great odds ends up succeeding,” he adds. Consequently, as a way of mitigating the risks associated with start –ups, financiers opt for established businesses with a record which they can easily track.

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“It is a delicate balance. Do you go for people with good ideas and lock out those who have the experience?” he quips, adding that to fix such a problem requires financiers to look at the entire value chain of the business in question.

Growing microfinance banks

The microfinance industry has recorded massive growth in the recent past. With most players already controlling huge loan books and a growing number of savings accounts, there is no denying that time has come for the micro lenders to stamp their authority in the industry. And matters can only get better with the introduction of Kenya Banks’ reference rates (KBBR). A notable development in the banking industry, KBRR developed as an outcome of discussions between lenders, the Central Bank of Kenya and the National Treasury. Its key objective was to enhance the supply of private sector credit and mortgage finance in Kenya by facilitating a transparent credit pricing framework. It is the base rate for all commercial bank’s lending. Mugendi hails KBRR as the right avenue to create a level playing ground as clients can now verify the lending rates offered by various banks. One of the challenges that face most financial institutions in Kenya is the high default rates that push the cost of credit even higher. Nevertheless, the situation is different in most of the developed economies. “In developed nations like the USA, when you default, your credit rating goes haywireyour utility bills and mortgage go up. It is an internal incentive to make people pay up.” Due to this, financial institutions are confident of the market and the general interest rates come down. “ The moment the cost of credit becomes low, entrepreneurship just shoots up and the economy grows ,” observes Mugendi. Locally, he says, credit information sharing is a stitch in time. The new rules seek to bring all lenders into the credit informationsharing system as well as reduce reliance on collateral-based lending and arrest rising default rates. “Though the government has worked tirelessly in bringing interest rates down, the rates can come down inevitably if it intervenes to tighten credit sharing,” he ends.

Pensions

Feature

to County Pension Fund (CPF) due to diversification of its services. Mwaniki says that under the new name, the company is now able to target county government members and the general public which reflects an expansion of its mandate.

ike in many African countries, pension coverage is low in Kenya mainly due to a relatively small size of the formal economy, general lack of awareness about pensions, lack of flexible pension arrangements and the low disposable income of most Kenyans.

CPF now has branch offices in Kisumu, Eldoret, Mombasa, Nyeri and Garissa. “This move is set to make service delivery more personalized and easier for members to access services at their doorstep,” he adds.

Statistics from the pension industry regulator Retirement Benefits Authority (RBA) show that only 15 per cent of Kenya’s 12 million labour force is under formal pension plans. The situation is grave in the informal sector which constitutes of 80 per cent of Kenya’s workforce, where a negligible one per cent has subscribed to pension plans. This makes poverty in old age a reality and if the uptake does not go up, the working population in future will have the unenviable task of supporting two groups of dependants - the retirees and the generation which has not attained the age of entering the labour market. Despite the scary statistics, Kenya’s pension industry has made wide strides in automating processes hence the observable efficiency in service delivery. This has primarily been necessitated by the innovative pension products that have been designed by pension solution providers as they seek to take advantage of the rising opportunities in the industry.

Peter Mwaniki, CPF head of business development.

M PENSION BY CPF: A TIMELY PLAN TO HELP KENYANS SAVE FOR RETIREMENT The unique pension plan by CPF Financial Services allows Kenyans to save as little as Kshs50 to secure their future By Amos Wachira

National Bank Custody Service Manager George Irungu, shares a toast with CPF Director Rosemary Nderitu, CPF Managing Director Hosea Kili and Kenya National Chambers of Commerce & Industry chairman Kiprono Kitonny during the unveil of M-Pension retirement plan. farmers, fishermen, craftsmen and mechanics can now plan for their sunset years and a comfortable retirement.

it has been well received by many people who have hailed it as a game changer in the industry.

The CPF M- Pension is a hassle free retirement savings plan that makes use of a mobile based platform. M-Pension allows one to put aside money for retirement daily, weekly or monthly by saving as little as Ksh50 daily with an option of making lump sum contributions.

However, it is the value added services that come with the plan that make it a clear favourite for individuals keen on saving for retirement.

M- Pension is segmented into three plans depending on the individual member’s needs. Firstly, the Mwananchi Pension Plan targets low income earners who make daily contributions of Ksh50 towards their retirement.

One such product is the M Pension Plan, a flexible and easy to understand pension solution that was introduced into the market a month ago.

Starehe Pension Plan on the other hand is aimed at middle income earners who earn between Kshs10 000 and Kshs70 000 per month. Their minimum daily contribution is Ksh100.

“We designed the plan to provide our members with a retirement savings solution that is easy to understand and flexible as we seek to improve the uptake level of pension among Kenyans,” says Peter Mwaniki, CPF head of business development.

The third segment is the executive Pension Plan which is designed for individuals with a monthly income of over Kshs70 000. Members are required to make a minimum daily contribution of Ksh300 only.

“We place great value in providing unique solutions to our clients and this is the reason why we have invested time and resources to develop an approach that delivers to our clients’ distinctive needs.”

Mwaniki says that members of this retirement plan can secure their future today by contributing to the high yielding retirement fund which will provide a regular income in retirement for those who opt for pensions or a lump sum amount.

Under this package, Kenyans earning less than Ksh10000 per month can now save as little as Ksh50 daily towards their retirement. Low income earners especially those in the informal sector have largely been neglected by the formal pensions industry and are ultimately condemned to poverty in old age. But now with M-Pension, an innovative Individual Pension Plan by CPF Financial Services, informal sector workers including

NOVEMBER / DECEMBER 2014 BIASHARA LEO

CPF Financial Services chief executive officer, Hosea Kili says the M-Pension was developed in response to a growing need for a pension package targeting low income earners especially with social security now being recognized as a constitutional right under Article 43. The need to reach many members has led to the development of a mobile platform to drive the product.

Game changer

Since the plan was launched in October,

NOVEMBER / DECEMBER

Currently, individuals in the three segments of the product get added benefits like Eneza Kilimo, a plan that enables them to save for the planting season, last respect benefita free funeral expense cover, school fees saving plan, animal or crop insurance, personal accident cover, life insurance, wedding and mortgage plans. This is in line with the provisions of the particular segment. “Our competitive edge lies in the simplicity of the product. It is very easy to register and make contributions via a mobile phone. We are assisting most of our members to subscribe and this is mainly via our wide branch network and a dedicated call centre which handles the challenges that may arise,” offers Mwaniki. The product’s convenience is further underpinned by the easy modes of payment available to members. These include cash, cheques, electronic fund transfers, standing orders and employers check off system. “We are licensed and regulated by RBA and we work with licensed fund managers to diversify our portfolio so as to guarantee our members a good return on investment.” Diversification of services CPF Financial services, which was established in 1929 to offer retirement solutions to county council workers, banks on its wealth of experience to ensure that more Kenyans can secure their future. The retirement benefits scheme recently changed its name from Laptrust Administration Services Ltd (LASER)

2014 BIASHARA LEO

Currently, CPF Financial Services is involved in management of the Local Authorities Pension Trust (a Defined Benefit Scheme), Laptrust (Umbrella) Retirement Fund (a Defined Contribution Scheme) and the CPF (Individual) Pension Scheme. The company also has two subsidiaries dealing in ICT and Property Services namely Laser Infrastructure and Technology Solutions (LITES) and Laser Property Services. The firm also offers document management, training, consultancy and ICT solutions as it seeks to address the varying needs of its clients in line with its mantra of fulfilling lives. It is not hard to see that this growth has put the scheme administrator on an upward trajectory of financial success. The ISO certified financial services firm has over the years received accolades for its efficient service delivery model; key among them being the coveted Champions of Governance award and the prestigious Company of the Year Award (COYA).

Pension business growing

The fact that the law makes it mandatory for all employers to register their employees under the NSSF Act and there is a provision for opting out of NSSF scheme means that pension business is now set to grow exponentially in the next few years. Data from the institute of Economic Affairs shows that over 77 per cent of workers in Kenya are in the informal sector, 60 per cent of whom are youth. This constitutes a large pool of untapped savings beyond the reach of most pension schemes. With a mobile phone penetration rate of over 60 percent in the country, CPF’s innovation is strategically placed to meet the needs of a majority of economically active Kenyans from city dwellers to farmers. The CPF’s head of business development observes that the pension industry is moving towards creation of innovative products and use of digital platforms to the benefit of the customers. “We also want to make retirement benefits user friendly to members. Currently, members can use their contributions as a guarantee for a mortgage which is a move towards the right direction in the pivotal industry,”

Modern Farming

BL KILIMO

Samuel Munguti, marketing manager ,Farm Shop Trust.

HOW ONE ORGANISATION IS CHANGING THE LIVES OF KENYANS, ONE FARMER AT A TIME Farm Shop is giving farmers technical expertise to manage their farms By Anthony Kiganda griculture is the major contributor of the Kenyan economy. It is the leading economic sector, accounting for 25% of the gross domestic product (GDP). The sector also accounts for 65 per cent of Kenya’s total exports and provides more than 18 per cent of formal employment. Growth of the national economy is therefore highly correlated to growth and development in agriculture.

affect farm output. It is for this reason that two US based entrepreneurs-Madison Ayer and Farouk Jiwa hatched an idea and set up a one stop shop for all farm inputs.

Majority of farmers however, lack technical expertise to manage their farms. Most of them lack skills that can help them learn how to use proper inputs in order to boost their profits. To make matters worse, farmers often buy counterfeit seeds, fertilizers or pesticides that consequently

“We partnered with London School of Economics and MCkinsey Consulting Group and did a major survey on agriculture in Kenya with small scale farming in mind and we came up with challenges facing them as well as recommendation,” he adds.

NOVEMBER / DECEMBER

How Farm Shop began

“We formed Farm Shop after discovering that most farmers in Kenya had little access to modern farming inputs,” begins Samuel Munguti, the marketing manager of Farm Shop Trust.

2014 BIASHARA LEO

The survey came up with three major challenges facing farming in Kenya. Researchers identified lack of access to farm input eqipment, sketchy information on farming and lack of proper farm services as major hurdles affecting successful agriculture. The founders of Farm Shop then came up with the idea of forming an organization that would help tackle challenges faced by farmers. “This is an organization with a difference. Farmers visit our modernized shops that resemble supermarkets and it’s a nice shopping experience to our farmers,” says Munguti. “We not only sell certified farm inputs to farmers but also offer information on how to use them and how to increase production,” says the smiling marketing manager who also doubles up as a farmer. Farm Shop carries out vigorous marketing of the services they offer through forums that eventually turn out to be beneficial to farmers. For example, they organize and sponsor promotional days where suppliers meet farmers and discuss problems facing them in their farming activities.

Modern Farming

Your Complete Solution to ECDE

When I benefit, all the farmers around me will also benefit, and together, we will build our community’s future

PRE-SCHOOL BOOKS & CHARTS

Farm Shop is currently in Kiambu, Bungoma, Makueni, Machakos and Bungoma though it seeks to set up branches across the country before spreading its wings to Uganda and Tanzania. “Farm Shop has partnered with Ford Foundation, MasterCard Foundation and Kenya Market Trust as well as Comic Relieve in bid to expand in the region,” Munguti says. “The donors got interested in what we do and are offering a helping hand in order to help us achieve our target of opening 120 shops from the current 25 for us to achieve sustainability,” he explains.

Making the difference

One of the farmers that Farm Shop has nurtured to engage in commercial farming is Paul Mbugua, a small scale farmer in Kiambu County. He had been farming for a long time but his breakthrough came when the organization was launched in 2010.

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The Kenya Agricultural Research Institute (Kari) has ascertained through studies that roughly four out of ten seed packets in the country contain counterfeit seed, and three quarters of Kenyan farmers have planted fake seeds at some point.

As an organization that is championing modern farming, Farm Shop also organizes an event called clinic days where crop and livestock experts are invited to offer consultation services to farmers for free. Farm Shop also identifies a farm that specializes in particular activities like dairy farming where they plan a demonstration. In this event, farmers are taken through various stages of crop production.

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NAIROBI, KENYA

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Farmers also get quality information on proper farming methods on these promo days. They are informed on how to identify original pesticides, seeds and fungicides.

It is due to this escalating problem that Bill and Melinda Gates Foundation and the Directorate-General for International Cooperation (DGIS) is set to issue a grant of Ksh17.8 billion to farmers in Kenya, Uganda and Tanzania, which will specifically target to rid the region of counterfeit farm inputs.

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Joyce Nyakio, a poultry farmer from Kiambu county.

“After high school, I realized I didn’t want to be reliant on the government for handouts. I had always loved to plant trees and crops as a child, so I decided to take this up as my full-time job,” says Mbugua. “I plant all sort of greens; spinach, kale, lettuce, herbs, and many other kinds of produce. I also have dairy cattle, rabbits and poultry – all of which I have started in the past few years,” he adds. Mbugua was the first farmer to go for a meeting at the first Farm Shop in early 2012. He took 10 farmers with him, and they turned out to be success stories. The form four leaver says he earns about Ksh22, 000 a month from the sale of the green vegetables and farm manure. “This has allowed me to send my two boys to school and the volume of my produce is becoming much bigger. Farm Shop has been solely responsible for all the extra profits I make now. I buy all the seeds from Farm Shop, as well as the pesticides and other necessary inputs,” says the smiling farmer. “When I benefit, all the farmers around me will also benefit, and together, we will build our community’s future,” the proud farmer says.

Self reliance

Joyce Nyakio is another farmer whose fortunes have been turned around by Farm Shop. She is a mixed farmer from Ndenderu area of Kiambu County. A year ago, she used to work with a high profile 5-star hotel in Nairobi as a supervisor.

“I resigned and came back home to start my own farm. I used to have broilers chicken before, but I decided to try out Layers chicken. So I bought 700 chicks, of which 650 survived,” says Nyakio.

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“They have a good variety of medicines for animals. Farm Shop has really helped me. There used to be a time when I would come home and find my chicken sick, and the only proper facility was almost 40 minutes away.”

“All of a sudden, the production went down to only 15 trays. I sought help from Farm Shop and they recommended a new feed, which has boosted my returns. My birds are currently producing 18 trays of eggs daily, and it looks like the 20 tray target is not far away. I sell each tray for Ksh280 to the grocery store and to other suppliers, so in a day I make a good profit,” concludes the jovial farmer.

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It was during this process that he heard about this new shop called Farm Shop when she was walking around town. “I used to buy medicine for poultry from far, and this new venture provided me with a convenient place for all my farm produce. The other shops in town were sub-standard, and often would not have what I needed. I became a fan of the franchise,” says the former hotel supervisor.

Nyakio says that Farm Shop also gives them advice and ideas. She has seen a huge difference in her farm’s output. Initially, she used to get 20 trays of eggs from her farm but the output levels dwindled on the backdrop of poor supplies from the available providers.

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Eco - Agriculture

environment, restore forests and empower livelihood of people living around forest areas,” shares Joan Gichuki, the local empowerment manager at Nature Kenya. “Our aim was to conserve forests and as a result protect birds and insects from extinction, but we had to provide the alternative for communities who depended on forests for their survival,” she adds. In order to meet challenges of protecting sites of critical biodiversity value, Nature Kenya strives to promote sustainable benefits and incentives through nature-based enterprises such as beekeeping, butterfly farming, mushroom and aloe farming, ecotourism, bird guiding, tree seedlings for business and forest restoration, and energy saving technologies such as solar cookers and food warmers.

Joan Gichuki, local empowerment manager at Nature Kenya.

FORGET CASH CROPS, TREES ARE THE NEW MONEY SPINNERS As most farmers in Rift Valley and Central Kenya uproot their tea and coffee bushes to make way for trees, one organization is at hand to help them rake in a steady income from eco-agriculture, a farming activity that involves tree planting and forest conservation. By Anthony Kiganda

n recent years, farmers in tea growing areas have been uprooting their tea bushes to make way for trees and real estate development, ventures which they claim are the new money minters. This departure from the past when cash crops like tea and coffee were huge export earners has been prompted by the falling prices of the traditional cash crops. Large chunks of land have been converted to thick forests as tree planting takes center stage, majorly due to the impressive returns that farmers make out of trees and the rising demand for timber. Take for instance this group of farmers from Sireet Tea Company in Nandi County which slashed their tea bushes claiming that they were unable to pay school fees for their children in secondary school and university because of low earnings. It is a trend that has been replicated in various parts of the country, especially in the Rift Valley and Central Kenya, areas which have been known as the “Crown

Highlands,” for producing the country’s main cash crops.

Nature Kenya

In a bid to help farmers appreciate the science of tree planting, Nature Kenya, a society that began as a conservation group of key species, sites, and habitats is promoting the environment by introducing commercial tree planting programs, an exercise referred to as eco agriculture. Nature Kenya works with communities across Kenya to enhance the growth of commercial eco-agriculture. Nature Kenya was the first members of the East Africa Natural History Society that collected and identified specimens of indigenous trees and other artifacts. They founded a museum to house the collections and educate the public. This museum was later transferred to the government of Kenya, eventually becoming the famous National Museums of Kenya. “We partnered with USAID to work with communities in Kenya to conserve the

In order to succeed in various projects, the organization has formed groups on the ground to work as volunteers. The volunteers are involved in environmental conservation work, birds and sites monitoring. Nature Kenya together with Birdlife, an international organization, identified some forests in Kenya such as the one in Nandi south as home to unique birds that are not found anywhere else in the world- also known as Important Bird Areas. “We launched an ambitious plan in partnership with Kenya Forest Services to ensure that communities around forest areas in Nandi South do not destroy the forest so we empowered them to plant trees for commercial and domestic use,” says Gichuki. The local empowerment manager says that Nature Kenya also worked with United Nations Development Programme and World Land Trust to ensure the tree planting project was successful. They had to contend with the culture from Kenyans who only planted trees but did little to ensure their growth was guaranteed. The organization is therefore engaged in training locals on tree planting and forest conservation.

establishment and management; woodlots establishment and management; beekeeping and honey processing; product value addition, enterprise management; business planning and marketing; leadership and group management; the Participatory Forest Management process and how to engage; and exchange tours to learn from their fellow community implementers.

A farmer poses next to his one acre eucalyptus woodlot in Nandi County. The environmental organization is also involved in training locals to embrace beekeeping as well. But what was the motivation behind the need to engage locals in capacity building in areas like Nandi South and Arabuko Sokoke? Nature Kenya wanted to check forest destruction. It was difficult for the society to caution communities from destroying forests without giving them another means of living. “We wanted to stop overdependence on natural resources as well as reduce poverty among locals living near forest areas and reduce the threat against endangered species of birds, insects, and other wild animals,” Gichuki comments.

Success story

In 2009 Nature Kenya together with USAID introduced the forest adjacent communities to eco-agriculture and nature based enterprise tools and technologies for conservation. Nandi South and Western

Kenya communities were singled out in this project dubbed “improving livelihood through sustainable government, NGO, private partnership in South Nandi Forest and Western Kenya.” A number of groups and individuals greatly benefitted from this initiative.

Supporting farming groups

One of the groups that adopted the project is Tebeswet Ogilgei Youth Group that hails from Nandi South. Nature Kenya and international partners supported the Tebeswet Ogilgei Youth Group with tree seeds and tree nursery. Through co-financing by Community Environment Facility (CEF) project of the Community Development Trust Fund (CDTF), which is funded by the European Union (EU) and Government of Kenya, the group got 25 langstroth beehives and harvesting kits. Over and above these inputs the Nature Kenya project capacity built the group through trainings on tree nursery

“The market for trees is readily available. Upon maturity a single tree can go for Ksh10,000 or Ksh15, 000. Kenya Power is one such market,” Gichuki says.

NOVEMBER / DECEMBER 2014 BIASHARA LEO

Under the beekeeping enterprise the group produced 600kgs of honey which they sold to African Beekeepers Limited for Kshs120, 000 in 2009. In the following years they experienced a decline in honey production with 220 kilos in 2010 of which they consumed 20kilos and sold out 200kgs locally and in Nairobi for Kshs. 60,000. In 2011 they produced 460 kilos consumed 10kgs and sold out the rest to the same market and generated KShs135, 000. Jonah Kiptanui Koech, the secretary of the group, trains local communities on environmental conservation, supports them to establish woodlots besides offering loans to tea farmers as a revolving fund and coordinating the bursaries scheme from the company to children in the surrounding community. In 2009, Jonah through the project support established a woodlot of Eucalyptus trees (1,000 trees) on 1 acre of his land. These will be ready for sales as poles in 2016 at an estimated cost not less than Kshs2, 500 per tree. He expects to earn Kshs2, 500,000 at that time. Even as Nature Kenya engages communities in eco-agriculture, an international report places Kenya as one of the countries with forest cover of less than two per cent which is declining fast. However similar efforts by both the government and nongovernmental organizations to popularize tree planting are starting to bear fruits.

Nature Kenya estimates that if a farmer plants one thousand trees and takes care of them, 70 per cent of them will survive and the benefits are huge.

But tree planting is not for the faint hearted. Trees like Eucalyptus for example take 1015 years to mature.

The group received annual cash income benefits from the sales of seedlings and planting material for the individual member woodlots. In 2009 the group sold 20,000 seedlings for Kshs. 200,000. In 2010 they sold 15,000 seedlings for Kshs. 150,000; in 2011 they sold 6,000 seedlings for Kshs. 60,000; and in the first half 2012 they have so far sold 2,500 seedlings for Kshs. 25,000.

Gichuki advices communities in Kenya to embrace tree planting saying that the benefits are enormous. She particularly urges the youth to engage in commercial tree planting and bee keeping to earn maximum returns from their farms.

A bee farmer in his routine inspection of hives.

NOVEMBER / DECEMBER

2014 BIASHARA LEO

Eco - Agriculture

COMMUNITY ORGANIZATION FINDS TREASURE IN ‘USELESS’ WATER HYACINTH

By Amos wachira or a long time, fishermen living around Lake Victoria have struggled to contain a ravaging weed that has occupied the fresh water lake.

Water hyacinth has not only depleted the surface area of the lake but has also spelt doom to the fish in the lake and by extension, to thousands of people who eke out a living out of fishing. The weed that has eaten up large swathes of the lake is both harmful to the fish and to the social economic life of Lake Victoria region. In the recent past, governments in the East African region have been spending huge amounts of money in their futile mission to tame the aquatic weed which continues to choke Africa’s largest fresh water lake and the world’s second largest lake. Takawiri initiative is a community based organization that is located in Migosi near Kisumu. The group has set out to solve the water hyacinth problem and their efforts are not only saving the fish in the lake but also putting money into the pockets of the youth in and around the area.

The group came up with a novel idea of turning the harmful weed into cash. Michael Otieno, the director explains. ”We develop a range of rare products that are sold commercially. This eliminates the weed and also creates wealth to the youth.” Takawiri initiative was founded in 2010 and registered as a community based organization (CBO) in 2011. The group harvests water hyacinth from the lake and turns it to beautiful hand crafted stationery like folders, envelops greetings cards, gift bags, gift boxes, letterheads, business cards, scrap books, name tags, and bookmarks. The products are sold to hotels, learning institutions, stationery shops, and private individuals. Recently, the products have been segmented into domestic and export markets. For Michael Otieno, water hyacinth has provided him with a full time employment. Each day when his neighbours go to work in the morning, he rides his bicycle to the lake where he collects the weed. He says that water hyacinth alone cannot make high quality paper products but has

to be mixed with waste paper products for excellent results.

How it is done

“We harvest hyacinth from Lake Victoria by involving community members along the lake. We hire their boats and services hence create alternative employment,” explains Otieno. The water hyacinth is then transported to a workshop where they are cut into smaller pieces then cooked. After cooking, hyacinth is then mixed with soaked waste paper then pulped using locally fabricated machines. The pulp is then suspended in a trough half filled with water. Using wooden frame with net attached to it, artisans sieve the pulp and a thin layer of paper forms on the net. The wet paper is then dried out under the sun. Depending on the weather the paper should dry between six to eight hours. The dry paper is then pressed to finer quality using calendaring machine and converted to desired products.

Michael Otieno in his workshop. RIGHT: Some of the finished products. “We empower women and youth with finance so they can involve themselves in other income generating activities.” It is through the group’s initiative that the almost crippled fishing industry in Lake Victoria has been revived, consequently creating more jobs to the locals who were losing the lake to water hyacinth.

Worst aquatic weed

Water hyacinth is one of the world’s worst aquatic weeds. It infests rivers, dams, lakes and irrigation channels on every continent except Antarctica. It devastates aquatic environments and costs billions of dollars every year in control costs and economic losses.

The water hyacinth has become a major invasive plant in Lake Victoria. Experts believe that this is a result of the release of large amounts of untreated wastewater, agricultural and industrial runoff directly into Lake Victoria over the past 30 years which has greatly increased the nutrient levels of nitrogen and phosphorus in the lake “triggering massive growth of exotic water hyacinth,” which colonized the lake in the late 1990’s. This invasive weed creates anoxic (total depletion of oxygen levels) conditions in the lake inhibiting decomposing plant material, raising toxicity and disease levels to both fish and people. At the same time

A graduate of the Africa Innovation Center in Kisumu, Otieno has received accolades for his innovation which is making a big difference in the region. He was named as the winner of the Enablis business plan competition in 2013, where winners walked home with Kshs3 million to fund their ideas or an existing project.

It is after this tedious process that Otieno and his artisans churn out a variety of beautiful products for sale in the local market and in as far as Nairobi, with some of the products being earmarked for export. “With our ideas, we have now engaged in continuous product development thereby managing to come up with a wide range of product line. We are introducing new products every few months.”

Besides, Takawiri’s stand at the recently held Nairobi International Trade Fair attracted hundreds of Kenyans, including government luminaries and policy makers who lauded the organization’s efforts in finding a solution to the water hyacinth menace.

By turning trash into treasure, the group has managed to create alternative employment to the fisher folk and women community groups. So far, more than 24 youth in the group have benefited from direct employment while 150 others are indirectly employed at the lake shores.

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the plant’s “web” creates a barrier for boats and ferries to maneuver, impedes access to the shoreline, interferes with hydroelectric power generation, and blocks the intake of water for industries. However, the aquatic weed has a few benefits. Water hyacinth mats can potentially have a positive effect on fish life in that they create a barrier to overfishing and allow for fish growth, there has even been the reappearance of some fish species thought to have been extinct in recent years. The benefits of the invasive plant are however negligent compared to the mess that this plant brings forth.

Takawiri Initiative has also been shortlisted for the National Environmental Trust Fund (NETFUND) awards. Otieno advises the youth to come up with innovations that will provide jobs to the youth.

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2014 BIASHARA LEO

Biashara Picture

Gulu University, Vice Chancellor ,Prof .Nyeko Pen-Mogi { left} awards Mount Kenya University Chairman and founder Dr. Simon Gicharu with an honorary degree of Doctor of Science for his promotion of higher education in East Africa.

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