Destin Africa
Kshs. 300 / Ushs. 9000 Tshs. 6000 / RWF. 2200 ISSUE 29 / 2019
INSIDE PAUL KINOTI: AIMING FOR THE SKY INCREASED INFRASTRUCTURAL GROWTH IN MACHAKOS COUNTY DRIVING UP DEMAND FOR REAL ESTATE JUMO: A FULL TECH STACK FOR BUILDING AND RUNNING FINANCIAL SERVICES
AA KENYA CELEBRATES 100 YEARS OF MOTORING EXCELLENCE
FRANCIS THEURI, CEO, AA KENYA www.destinafrica.co.ke
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Editor’s note
5 Destin Africa
Personal Budgeting: Why is it Important? Most people would agree that it is very important for a Fortune 500 company to have a working budget in place. Without this financial framework, a firm could easily outspend its revenue stream and quickly amass substantial amounts of debt. In addition, there would be no checks and balances in place to prevent over expenditure occurring at various levels. It would also be very unlikely that appropriate funds would be available should the company run into unexpected trouble. However, for whatever reason, many people do not realize that these principles should apply to our personal lives. There has never been a bigger need than there is today for families and individuals to establish personal budgets. In the long run, increased life expectancies have raised the average levels of retirement income that is now needed to survive. This translates into a need for increased retirement savings at a time when many people are living from one paycheck to another. In the short run, there is an increased temptation to become entangled in a trap of easily accessible credit card debt. The vicious cycle of mobile loan apps have also left many Kenyans, especially the youth, in deep debt traps. Some are also living beyond their means, at a period when there is more month than money. The best way to handle such problems is through the establishment of an effective personal budget. Preparing a spending plan helps people to spend money wisely, live within their income bracket, get out of debt, reach set financial goals, and prepare for financial emergencies among other factors. It means that a budget should have a purpose that should be achieved within a specific period of time. Knowing the source and amount of income, as well as the amount of cash allocated to expenses is very important.
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Contents
7 Destin Africa
20. Inspiring Woman
5. EDITOR’S NOTE 10. GET INSPIRED
22 . Entrepreneur Watch
24. MAIN STORY
12. CORPORATE NEWS Knight Frank’s Kenya Britam KCB Group Octagon Africa Group
16. TECHIE Internet Solutions Sets up a Cyber Threat Intelligence Centre
18. FINANCE Milhan Access Capital: Empowering People with Credit Facilities
20. INSPIRING WOMAN Entrepreneur Helping Clients Take The Stress Out of Organising Their Events
22. ENTREPRENEUR WATCH Paul kinoti: Aiming For The Sky
AA Kenya Celebrates 100 Years of Motoring Excellence www.destinafrica.co.ke
Destin Africa
8 Editor-in-Chief : SUSAN ARMSTRONG
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EDITORIAL Features Editor JENNIFER NYAWIRA Features Editor SHABAN AHAB Assistant Editor ALEX NYAMU Digital News Journalist JOE
DESIGN & PRODUCTION Art Direction & Design CAITLIN SHARON Graphic Designer FELIX CONTRIBUTORS Reuben Kimani John Muraya Ade Famoti Andrew Sordam Michael Armstrong Ayanda Kotode Dr. Charles Muteshi MARKETING & DIGITAL Head of Digital and Marketing JACKSON THUITA Digital Content Producer AMANDA Digital Coordinator KATE ISSAH FINANCE & OFFICE MANAGEMENT Accounts – accounts@destinafrica.co.ke Head of Sales & Media STEVE – steve@destinafrica.co.ke
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Published by Forafrica Media P. O. Box 74298-00200 Nairobi, Kenya. Cell: (+254) 774 680 871 / (+254) 739 553 074 E-mail: info@destinafrica.co.ke Website: www.destinafrica.co.ke Destin Africa @destinafrica
© 2019 Destin Africa published by FORAFRICA MEDIA. Copyright subsists in all work published in this magazine. Any reproduction or adaptation, in whole or in part, without written permission of the publishers is strictly prohibited and is an act of copyright infringement which may, in certain circumstances, constitute a criminal offence.
9 Destin Africa
Contents 18.
26. FINTECH JUMO: A Full Tech Stack for Building and Running Financial Services
28.
OPINION
28. CYBER SECURITY 30. REAL ESTATE 32. CLOUD COMPUTING 34. REAL ESTATE 36. ECONOMIC GROWTH 36. FIGHTING FRAUD 40. HEALTH & FITNESS
Couples Should Seek Professional Advice Regarding Fertility Issues
44.
42. TRAVELWISE Silverstone Air Starts Direct Flights to Homabay 44. DESTIN MOTOR Hyundai Grand L10Nios www.destinafrica.co.ke
Destin Africa 10
Get Inspired Provoking Quotes By Entrepreneurs And Executives
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Women looking to start-up must understand what business they are getting into in a very intricate way. Know WHY they want to do what they are doing. And thereafter start the process of getting into it. Knowledge, passion, interest, integrity.
Money is important, but if you’re passionate about something, you will work hard and success will follow. Once you set a goal, just make sure you put in 100 per cent effort to succeed.
“
POOJA BHATT, CO-FOUNDER AND HEAD ACTUARY OF QUANTARISK
SUZIE WOKABI, FOUNDER, SUZIEBEAUTY.
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If there are two things common to most self-made entrepreneurs, it’s hard work and resilience. If it was easy, everybody would have already done it. If it was easy, it wouldn’t have any value.
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NICOLAS POMPIGNE-MOGNARD, FOUNDER & CHAIRMAN, APO GROUP.
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“
He urges young people to let their passion manifest during tough times. Sometimes we do not realize that we are so close to the finishing line. Most people quit when they are just about to cross that line
“
TRUSHAR KHETIA ,CEO AND FOUNDER OF TRIA GROUP
We have a banking style that suits you, whatever style
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Find out more about our enhanced online and mobile banking services TAI SACCO SOCIETY LIMITED Head Office : Githunguri Town, Tai Plaza P.O Box 718 – 00216, Githunguri, Kenya Tel: 020 2010334 / 020 2014150 Website: www.taisacco.coop Email: info@taisacco.coop Twitter: @taisacco Facebook: Tai Sacco Society Limited
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Destin Africa 12
Corporate News
Oversupply, Tough Economy Exert Pressure on Prime Property Rents and Values
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rime residential rents and sale prices in Nairobi declined in the first half of 2019 amid continued oversupply of high-end developments in some locations and a credit crunch that has affected money circulation and spending power. Knight Frank’s Kenya Market Update - 1st Half 2019 shows prime residential prices fell by 1.8% over the period, increasing the annualised decline to 6.7% in the year to June. Prime residential rents reduced by 1.7%, taking the annualised decline to 3.3% in the year to June. “These factors have transformed the market in favour of buyers and tenants, which has been exacerbated by multinationals continuing to downsize whilst there are fewer expatriates relocating to Kenya, impacting negatively on the niche market,� the report notes. In the retail market, rents for prime spaces in shopping malls decreased by 5.9% in the period to US$4.8 per square foot per month. Landlords remained
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under considerable pressure to provide concessions to attract new tenants and retain existing occupiers. The pressure was compounded by tough economic conditions that have left most consumers with less disposable incomes, directly impacting on retailers.
Occupancy levels in established malls remained high at 90% in the first half while new retail developments (completed in the last 18 months) recorded occupancy levels of between 45% and 55%. A trend was noted in the period where current and new tenants are opting to take up space within extensions in established malls to tap into the existing clientele rather than open shop in new retail centres. Overall, footfall increased over the six months due to the presence of fully operational anchor tenants in most shopping malls. In the office market, prime rents in Nairobi remained unchanged in the first half of 2019 at US$1.3/sq ft/month, with the absorption of Grade A and B space declining by 8% compared to the second half of 2018.
The report states that some landlords are providing concessions such as longer fitout periods, partial contributions towards tenant fit-outs or giving discounted rentals so as to retain existing tenants and attract new ones. This appears to be a consistent theme across the market. Nonetheless, the office market has benefitted from shared workspace providers on the back of demand from small and medium enterprises, maturing start-ups and multinational firms entering the country. Serviced office space is growing in popularity owing to the flexibility it provides in comparison with traditional office accommodation. The niche market is expected to continue recording growth over the next few years as new entrants establish themselves whilst existing providers expand. In the period under review, several serviced office providers opened new facilities, with home-grown co-working space provider Workable opening a 12,000-sq ft shared workspace facility in January at Sanlam Towers, while Nairobi Garage opened its third 14,000-sq ft co-working facility at The Watermark Business Park, Karen, in February.
13 Destin Africa
Britam launches Cyber Insurance
Corporate News
During the launch of the product Britam Holdings Plc Group Managing Director, Dr Benson Wairegi said cybercrime will continue to become more advanced not just in the financial sector, but also in many industries across the region. [Photo/Courtesy]
B
ritam has collaborated with Chubb, a global leader in cyber insurance, to provide a cybersecurity cover for corporates.
The innovative cyber insurance cover will enable corporates to mitigate risks in the digital age as they face increased risk of cybercrimes.
The product is one of the first in the Kenyan Insurance market in line with the government’s data protection policy. In addition, the Central Bank of Kenya (CBK)
issued a directive that corporate financial services would be held responsible in case of breach of customer information. The product covers loss or damage to electronic data, reputational costs caused by cyberattack incidents. Moreover, Britam will protect businesses against a data breach or malicious cyber attacks that affect computer systems. Furthermore, firms will enjoy insurance against data losses caused by damage, theft, disruption, or corruption of electronic data.
Finally, the insurance provides comprehensive cyber risk cover such as property damage arising out of a network security breach, business interruption, and extra expense coverage arising out of system failure.
The venture is an opportunity for growth as it responds to the ever-changing cybersecurity environment. Cybersecurity experts have been urging firms to increase training on cybersecurity professionals to help deal with cybercrimes.
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Destin Africa 14
Corporate News
KCB Group takes great pride in being among the major Kenyan corporates who monitor and report the progress of their sustainability initiatives inequality, and access to water and sanitation.
KCB Group takes great pride in being among the major Kenyan corporates who monitor and report the progress of their sustainability initiatives. In period under review, the Bank recorded significant milestones in key areas among them a 23% reduction in its carbon footprint that is tracked and measured on a quarterly basis in all its operations. KCB Group Chief Operating Officer, Sam Makome, with Kenya Breweries Limited, Managing Director – Jane Karuku (R) and Elizabeth Katile, from Tunaweza Women with Disability during the 5th KCB Annual Supplier conference.
KCB Commits Billions of Shillings to Women in Diversity and Inclusivity Drive
K
CB Group is seeking to deepen its new women proposition, committing billions of shillings towards funding women owned and women run enterprises.
The Bank said the drive is meant to strengthen its diversity and inclusivity focus as part of its sustainability agenda by simplifying financial inclusion for women. The programme dubbed Women Value Proposition has seen the Bank disburse loans worth Kshs 7.1 billion to 1,400 women to date, KCB said in its current Sustainability Report for 2018. It is aimed at increasing credit facilities to women alongside, providing them with both technical and non-financial support. The initiative is in line with KCB Sustainability 10-point action plan on Diversity and inclusion. This pillar aims to incorporate gender diversity as part of its strategic initiative to ensure that we www.destinafrica.co.ke
encourage more women to take up key roles in business ventures.
“KCB is committed to making financial services more accessible and improving financial literacy. We are exploring possibilities that would reduce inequalities within the society and at the enable their economic development,” said Joshua Oigara, KCB Group CEO and MD.
Within the program, the women go through a financial literacy training and capacitybuilding program in order to sensitize them on financial empowerment before the disbursement of loans. The Bank attributes the 100% repayment rate success to the financial education foundation set during the empowerment program. The Bank’s Sustainability Agenda is aimed at further helping drive the Sustainable Development Goals, which are meant to eradicate an array of issues that include reducing poverty, hunger, disease, gender
According to the report, the value of facilities that have undergone Social and Environmental Due Diligence (SEDD) Assessments amount to KShs. 126.7Billion. This is part of the bank’s commitment to enhance responsible lending and green financing in the fight towards climate change, address governance issues as well as society considerations. Screening is done to avoid and manage loans with potential social and environmental risks by conducting social and environmental due diligence prior to loan disbursement as well as addressing remedial measures that have been documented in the process.
Under this pillar, KCB has continually committed to contribute to the green economy by deepening its focus on funding projects that have a positive environmental and social impact in the East African industry and beyond. The Bank is collaborating with other industry players to raise the first Green Bonds in the region for environmentally friendly projects by the year 2020. In addition, KCB Group has been at the forefront of driving Kenya’s banking sector to adopt and endorse the United Nations Environmental Programme Finance Initiative (UNEP-FI) Principles for Responsible Banking during the launch in September in New York at the UN General Assembly to be presided over by the UN Secretary General, Antonio Guterres.
15 Destin Africa Corporate News
Octagon Launches a Digital Pension Solution For the Informal Sector
Mutuku, Retirement Benefits Authority Chief Executive Officer. “Through such micro-pension innovations, key players such as Octagon are able to convert awareness into enrolment and widen pension coverage in the country. We also have Government support through the Treasury and with support of the World Bank to increase pension penetration,” he added. The Regulator lauded the need for innovation to accommodate the informal sector unlike the current pension plans that are mostly designed to cater to the formal sector in terms of access and contributions amount. Octagon has invested KShs 10 Million in the development of the solution.
Octagon Africa Group CEO Fred Waswa(right) explains to Retirement Benefits Authority CEO Nzomo Mutuku on how the newly launched pension solution for the informal sector- MOBIKEZA works. Looking on Octagon Pension Services MD Godwin Simba.
O
ctagon Pension Services Limited has launched a new innovative digital pension plan that gives workers in the informal sector with inconsistent income a flexible platform to save for their retirement. Dubbed MOBIKEZA, the product has an added unique advantage of allowing a contributor to make unlimited deposits and periodic withdrawals via USSD or an app. MOBIKEZA was developed with the youth, Jua Kali artisans and workers in MicroSmall and Medium-Sized Enterprises in mind and has unmatched capability of convenience in on-boarding, tracking and access of funds all through the mobile with access to three types of investment funds namely; Ustawi Fund (Conservative), Hakika Fund (Guaranteed) and Usawa Fund (Balanced).
“Pension coverage rate in Kenya is significantly low at 20 per cent compared to the 80 per cent coverage that is currently witnessed in the developed economies. To boost this coverage, there is a need to focus on the informal sector who constitute 3550 per cent of the economy in developing countries such as Kenya. We believe that
MOBIKEZA will be able to address the needs of the informal sector that require a flexible and affordable product that will be able to show daily, monthly and yearly yields, in turn, boost the saving culture and guarantee a comfortable life after retirement,” said Octagon Pension Services Limited CEO Godwin Simba. “Octagon is committed to growing the Pension Sector coverage by simplifying access and understanding of the pension industry through innovative technology platforms and educating the informal sector on the benefits of saving for retirement, the yields of such investments and how to track your funds,” he added. MOBIKEZA is powered by Octagon and is anchored under the Octagon Personal Pension Scheme, registered and regulated by the Retirement Benefits Authority. The solution’s platform is integrated with MPESA and the Bank’s platforms. “The launch of MOBIKEZA is extremely timely with a key focus of increasing penetration of pension. As RBA, we are honoured to see such great strides by Octagon in targeting a critical mass- the informal sector that comprises of 83 per cent of the total workforce,” said Nzomo
Customers can now register and activate MOBIKEZA without the need to visit any physical office or fill out forms. MOBIKEZA can be accessed by dialing USSD code *483*8000# or by downloading the MOBIKEZA app available on Google Play Store and Apple Store. About Octagon Pension Services Limited Octagon Pension Services Limited Octagon is one of the leading pension administrators in Kenya licensed by the Retirement Benefits Authority and a subsidiary of Octagon Africa Financial Services, a regional financial services provider offering pension and insurance brokerage services to individuals, nonprofit, public and private sector organizations. Octagon Pension Services Limited was started in a small office in Nairobi, Kenya and has since opened branches in Kisumu and Mombasa. In line with its Pan-African dream, Octagon has expanded its operations to Kampala, Uganda and Lusaka, Zambia. Over the last 12 years, Octagon has grown its client base tremendously from the 10 registered pension schemes in 2007 with a fund portfolio of Kenyan shillings 7 Billion to more than 200 corporate clients at the end of 2018 with a fund portfolio of over Kenyan Shillings 100 Billion. In 2016, Octagon Pension Services Limited was named the BEST PENSION provider by World Finance, a leading global authoritative finance magazine and was among the TOP 100 SME Companies in year 2018.
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Destin Africa 16 Techie
more, we have certified engineers with vast experience in identifying potential gaps in your security controls as well as identifying any unknown attackers on your network,” Mawudor added. Operating on 24/7 daily basis, the centre will provide a real-time cyber security service tailored to each company, based on Internet Solution’s cross-industry expertise. He noted that understanding the risks to your business, and knowing who might attack you, and why, play a key role in preventing financial or reputational damage from a cyber incident. Internet-Solutions Head of Cyber Security Dr. Bright Mawudor and the companys MD Richard Hechle during the launch of the Internet Solutions Threat Centre [Photo Courtesy].
Internet Solutions Sets up a Cyber Threat Intelligence Centre
I
nternet Solutions has invested Shs20 million in setting up a Cyber Threat Intelligence Centre that aims to help companies to monitor, analyze and respond to evolving cyber threats.
The move is meant to help companies operating in Kenya and in Africa to develop a risk-based, proactive cyber resiliency strategy that will help them prevent, detect and respond to cyber-attacks within their IT environments. The company will be looking to invest an additional Shs30 million in the next 12months in expanding the facilities and hiring more cyber security engineers. Cyberattacks are increasingly becoming coordinated and sophisticated, with cyber criminals targeting specific organisations, regions and customer profiles. To prevent potential financial, reputational and operational impairment occasioned by the increasing cyber threats and attacks, organisations in Kenya and worldwide are being compelled to implement early detection controls to safeguard their IT assets. According to the Communications Authority’s quarterly report released in April this year, Kenya’s cybersecurity threats increased by 167 percent to 10.2
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million from 3.8 million detected in the previous quarter. Within the same period, 12,197 cyber threat advisories were issued within the period to the affected organizations, marking a 91 per cent increase from the advisories sent out to affected institutions in the previous quarter.
Speaking during the launch, Internet Solutions Head of Cyber Security Services Dr. Bright Mawudor said cyber risk has become a major concern for businesses of all sizes, across all sectors and CIOs are under increasing pressure from boards to protect their organizations against evolving cyber threats albeit with strained budgets. “We understand how expensive and complicated monitoring, analysis and response capabilities needed to keep businesses safe can be, especially with most companies being under pressure to do more with less. Therefore, our threat intelligence centre has been set up to help our clients to be cyber resilient in a costeffective way,” he said.
“We offer a broad range of cyber and managed services that will help you tackle the ever-changing risk landscape. Whether it’s threat monitoring, threat intelligence, data protection, incident response and
According to Mawudor, there is no way to completely protect a business from a determined attacker, so it is critical to provide continuous monitoring to protect your organization.
“Our threat monitoring managed service works by leveraging the client’s existing security investments, consuming their output into our state-of-the-art analysis platforms, and correlating and combining them to identify risks beyond the capabilities of their individual technologies. Our unrivaled delivery capability operates 24x7, combining our specialist team’s experience and knowledge of your business to review and mitigate potential threats before they have an impact,” Mawudor emphasized. Cyber Threat Intelligence (CTI) services help to inform an organization of potential and current cyber-attacks to their applications and infrastructure. Internet Solutions’ Cyber Intelligence Centre offers a range of bespoke CTI services combining its well-trained engineers and a range of state-of-the-art technology to monitor online activity for active or potential threats.
About Internet Solutions Internet Solutions Kenya is the leading and most reliable converged Communication, IT infrastructure, Cyber Resiliency and Business Continuity Service Provider in East Africa. Internet Solutions is fully owned by Dimension Data Group (DD) which has a global asset base of over US$ 100 Billion. Dimension Data Group is owned by NTT Group.
Destin Africa Techie
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Destin Africa 18
Finance
Milhan Access Capital: Empowering People with Credit Facilities
The Credit-only microfinance institution banks on excellent customer service and short turnaround time for loan disbursement By Jennifer Nyawira
T
he microfinance industry in Kenya has been registering very fast growth in the recent past. Many new players have joined the highly competitive industry to the benefit of customers who now have a wide range of innovative products to choose from in their quest to achieve financial success.
Among them is Milhan Access Capital limited, a credit-only microfinance company that was established in 2015 by a group of like-minded brains.
“A gap was identified in the market where some people are not well served by the mainstream commercial banks,” says Michael Bitok, the company’s General Manager. These people, who include small medium enterprises, importers as well as those who deal with fast moving goods, require urgent cash to address their working capital immediate needs. Banks however tend to take too long to process loans and therefore are unable to address their customers’ urgent needs thus creating a funding gap in the market. “For Milhan Access Capital, the turnaround time for loan processing is 8 hours as long as the client has provided all the required documents.”
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Michael Bitok, General Manager, Milhan Access Capital limited.
As a credit-only MFI, the company does not mobilize deposits from its customers. It therefore relies on funding from shareholders, other financial institutions and investors for money to lend to its customers. Growth In just four years, Milhan Access Capital has grown by leaps and bounds to become one of the leading credit only MFI in the country. The company’s vision is to be the market leader in the provision of microfinance and related financial services in Kenya.
It started off as a small organization with a small office in Westlands with a team of three people. Today however, the organization prides itself on having created employment to over 25 people. “We have also seen our balance sheet
double every year, while our customer base has grown to over 250 clients,” reveals Mr Bitok.
Headquartered at Azure Tower along Lantana Road in Westlands, the company recently opened another branch in the central business district (CBD) of Nairobi as part of its expansion strategy. It also plans to open new branches in Meru, Nakuru and Mombasa in the near future. Given its commendable growth over the years, clearly, this is a milestone that Milhan Access Capital is set to achieve sooner than projected.
Product offering Milhan Access Capital has positioned itself as a customer centric and market led microfinance institution. It offers a wide range of products and services to its
19 Destin Africa Finance
Most remarkably, the company communicates openly to its customers to ensure that there are no hidden charges or information in relation to the loans, charges, repayment dates or repayment amounts. This is important considering the heightened competition in the industry and to avoid future disputes with the customers. The Company ensure that the customers make informed decisions at all the times and thus avoid unnecessary burden that may be caused by lack of all the information necessary to make a good credit decision.
Company employees during Team Building Activities.
customers in the most efficient way and according to their needs. To start with, log book loans make up to 90 percent of the loan book. “We finance 50 percent of the logbook value from a minimum of Ksh.100, 000 up to a maximum of Ksh.2, 000,000.” The loans are advanced on the same day after perfection and charging of the log book.
Second, is invoice discounting which entails providing instant cash that is tied up in outstanding invoices. The company finances up to 80 percent of the value of the invoice. Currently, it works with select suppliers such as supermarkets, but the General Manager discloses that lately, customers are required to provide additional security. Third, is cheque discounting whereby clients get quick cash against post- dated cheques from a reputable entity. The company finances up to 80 percent of the value of the cheque and the product has a repayment period of three months. In case a customer pays within the stipulated period of time, the remaining value of the cheque is given back to the customer.
Finally, is the import duty finance, a short term loan facility usually for a duration of 30 days or less extended to motor vehicle importers in order to facilitate faster settlement of duty charges at Kenya Revenue Authority (KRA) and other bodies
to avoid demurrage. Mr Bitok says that the product is risky since the log book is normally not yet issued by the time the loan is being advance. The company has nevertheless managed to control the risk by using their own agent to clear the goods. This facility may be converted to a Log book finance facility at the expiry of one month, if the customer so wishes.
Milhan Access Capital recently set up Milhan Insurance Agency in order to serve the insurance needs of its customers more effectively. The agency is regulated by the Insurance Regulatory Authority (IRA) and the company has partnered with leading insurance companies to deliver quality service and for claim settlement.
Why Milhan Access Capital? The company’s DNA is defined by its core values which aim to ensure excellent service is delivered to all customers. This has not only seen Milhan grow its customer base, but has also seen it retain its existing clients. In fact, majority of its customers come from referrals from existing ones. Besides, most of the customers who have borrowed the short term facilities offered by the Company have retained their security with the Company since the company was established. This way, their loan request get processed within a few hours.
‘’We have set up a Consultancy arm of the business that deals with personal financial planning that can be notoriously complicated. This is after realizing that some customer seeking for funding will need professional independent financial advice in order to avoid future financial distress. We give this advice in most case before we provide funding’’, Says the General Manager. The Company also provides specialist advice to individuals and SMEs seeking tailored analysis and recommendations on feasible business strategies and investment decisions. The right financial and business strategy can assist a business especially SMEs in ensuring they have sustainable growth and are protected from downside business risks. Current trends The Kenyan financial sector has experienced major boost in the past few years with the rise of a viable microfinance industry that plays a major role in economic growth. According to Mr Bitok, the sector contributes greatly to the needs of small and medium enterprises (SMEs) who require urgent working capital. The need is huge and that’s what companies like Milhan Access Capital seek to satisfy. Sharing his sentiments regarding the capping of interest rates, the General Manager says it has resulted in a general slowdown in the financial industry. Lending to small and medium enterprises has dwindled, resulting in business and cash flow slowdown. “We are however happy that there is a review of the capping rate law. SMEs will be able to access credit and there will be quick exchange of money and that’s what creates business,” he observes. www.destinafrica.co.ke
Destin Africa 20 Inspiring Woman
Entrepreneur Helping Clients Take The Stress Out of Organising Their Events The special events industry has grown tremendously over the years. In Kenya, it has attracted many players who are involved in planning various events ranging from social, corporate functions, private parties as well as grand openings. Event planning is however quite complex and dynamic in nature. For many companies and individuals, the thought of organising events can be a logistical nightmare, but for Nyasha Mukombe, founder of Sakile Events Management, it’s a pleasure. But what does it take to run a successful event management company? Ms Mukombe shares her views on this and her entrepreneurship journey.
W
hat inspired you to start the company? While the saying goes ‘leaders are not made they are born’ that is how l feel about being entrepreneurial. As long as l can remember, I have always had an idea to sell something. My eye has always been able to identify a gap and an opportunity. For instance, if we were at youth camp and the leader said write in your note book, l would look up to see how many were actually writing and at the next meeting, l would rock up with extra pens and notebooks for sale. Whenever www.destinafrica.co.ke
21 Destin Africa Inspiring Woman
we went to a tournament, l would be the one with extra candy and treats for sale. If l was at work, I would be the one with the catalogues selling perfumes, handbags, and whatever else I felt people just might need. While other people perhaps felt selfconscious about selling, l loved it – so much so that when l went to Varsity l majored in marketing.
What sets your company apart? Organizing an event can be highly stressful, which is why we encourage our clients to allow us to deal with that stress so they can focus on enjoying their function. We specialize in Venue Finding, Conferences, Team Building, Facilitation, Private Functions and Logistical Support. We offer a wide range of Corporate Gifts which can be branded with company logos, as well as Favors in line with any chosen event theme. No event is too big or too small for us. Share a little about your entrepreneurial journey I have learnt a few valuable lessons along the way. Entrepreneurship is not for the fainthearted. When l decided to register my business, l made the mistake most entrepreneurs make. I splashed out on furnishing big offices in an expensive area, and incurred a lot of other overheads which were really not necessary in the
beginning because the business did not have the capacity to meet all those costs.
So we were spending much more before we started making anything. It wasn’t long before it became too much. Most entrepreneurs understand the emotional roller coaster that is involved in starting a business. I folded, but the dream was still there and a few years later and becoming a lot wiser, l got up and started again. When we know better we do better. In these days of Google, there is no need to go through what I did. My advice is to do your research in your area of expertise, know your competitors, and figure out what your niche is. Don’t be easily intimidated, be bold and step out, you will surprise yourself. As a Christian, my faith also plays a huge role, l believe when you trust in the Lord and commit your ways to him, he will direct your path.
What are your future plans and aspirations for your company? To be able to operate a well-oiled business. At the moment, I personally handle most of our work and it leaves little room for much else. While I’m a business person, I have many other facets – I’m also a mother, a sister, a daughter, a woman! I would love to be in position where even if I’m away, l
know our standards remain constant in the business. What gives you the most satisfaction being an entrepreneur? The ability to make a difference. Each project is unique especially in my industry. Every event/function/conference is unique and to be able to sit down with a client, listening to what and how they want their event to unfold and being able to deliver, is priceless. Events management is also a relational business, so it’s gratifying to be able to walk away from a function knowing you have left your footprint.
What’s the biggest piece of advice you can give to other women looking to start-up? As women, we have it in us to be tenacious in so many areas of our lives, why not business? If not now, then when? If not you, then who? Awaken the lioness within you. www.destinafrica.co.ke
Destin Africa 22 Entrepreneur Watch
Paul Kinoti:
Aiming For The Sky He started off with a village kiosk after high school, but the young entrepreneur did not let his entrepreneurship spirit dampen. Today, he heads Avanti Corp, an investment vehicle based in Mombasa that he founded
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By Jennifer Nyawira
oung entrepreneurs are the drivers of many of the emerging economies in Africa and other developing countries. In Kenya, they are changing the face of the country. They are focusing on opportunity entrepreneurship by identifying an opportunity and pouncing on it to fill the gap. They have become innovators and trailblazers in different sectors of the economy, and their efforts are paying off.
In the past, the youth have been known to be over reliant on white collar jobs, a notion that is changing tremendously. This is the story of Paul Kinoti, a young entrepreneur based in Mombasa. His entrepreneurship journey started at very young age- just after finishing his high school education. “As I was still in the village waiting to join the University, I started a small village kiosk that I later sold to someone else,� he says. Today, Kinoti is the founder and managing director of Avanti Corp, an investment vehicle that is home to three brands; Real estate (Avanti Consult), energy- LPG for
www.destinafrica.co.ke
23 Destin Africa Entrepreneur Watch
now (Avantigas), and optical supplies (Avanti Optica).
“We are very young but full of energy and fun to do business with.”
Commenting about the real estate industry, he appreciates the diversity in terms of investment options. “The industry is really growing, but I also believe it is about time it was regulated.” Inspiration Kinoti says that the motivation behind stating the company was to offer themselves as well as those around them sustainable solutions. Furthermore, the desire to start and grow something that would change lives now and in the future was also a driving force.
While competition is a key issue that divides the market share among the incumbent firms, the young entrepreneur has a different perspective on the matter.
“At Avanti Corp Limited, we focus more on building ourselves rather than competing
with other players,” adding that, “We strive to build our brands on honesty and integrity… two things you can’t buy.”
There is no doubt that companies with brand integrity not only show that they care about the same things that their customers’ value, but they also deliver on promises. Brand integrity creates loyalty and trust … two things that are at the heart of every successful business. Achievements “By God’s grace, we are growing, and we are happy with that. There is a lot of room up that ladder; that’s what I’m learning.” Setting up was not easy, but the three brands have the framework in place now. Like most first time entrepreneurs, he struggled getting off the blocks. However, that did not hinder him from realizing his dreams. “As a matter of fact, we are where we are partly because there are challenges (within and without) to overcome. Each challenge is unique, which means that the solutions have also been distinct. Bottom
line though, I have always reminded myself of my journey, prayed, and got my hands busy.” Gaining knowledge has also helped a lot. By this I mean, learning new things. A new challenge is an opportunity to learn something new. His satisfaction as an entrepreneur lies on conceiving an idea, working on it, and achieving the desired goals… That’s process! “My desire is to grow beyond myself in terms of space and time.”
He urges young people aspiring to be entrepreneurs to do it out of passion rather than necessity. “You can do it. Word of caution though; it is not something you do because ‘there is nothing else to do’, rather, it is something you do ‘because you have something to do and a burning desire to do it’.” As a parting shot, Kinoti urges anyone interested in real estate along the Kenyan coast to invest with them and they will make the investing journey fun.
www.destinafrica.co.ke
Destin Africa 24 Main Story
AA Kenya Celebrates 100 Years of Motoring Excellence
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he Automobile Association of Kenya (AA Kenya) is the largest Members’ motoring Association in Kenya with branch network in all major towns countrywide. It was founded in 1919 by Lionel Douglas Galton Fenzi as the Royal East Africa Automobile Association. AA Kenya is internationally affiliated to the Fédération Internationale de L’Automobile (FIA) which represents over 100 million motorists worldwide. At AA Kenya, we offer a wide array of services all geared towards making the motoring experience safe and comfortable for motorists. We also inculcate safe road practices to protect all road users against road crashes. Among our wide array of services are: Driver Instruction (both learner and advanced); Vehicle Assessment and Inspection; Road Rescue and Recovery Services, Technical Training; Carnet de Passage and International Driving Permit along with Driver Recruitment.
AA Kenya services are more customer centric and put each customer’s unique needs in mind. Our services are tailored to address the progressing times where we anticipate each of our members’ needs and pre-empt them in good time. Our name is also defined by the high standards of professionalism and quality employed in meeting the needs of our customers. We are also more inclined towards providing not just comfort but also the overall safety for our members, their passengers and other road users. We have a strong branch network across the country allowing our members excellent service at all times regardless of location. www.destinafrica.co.ke
Francis Theuri, CEO, AA Kenya.
25 Destin Africa Main Story
*650# By simply dialling *650# on your mobile phone, you can sign up for membership easily activities aimed at equipping motorists and other road users with essential skills that would on occasion draw the difference between life and death. As we speak, we have trained more than 1 million students in learner and advanced driving instruction for all categories of driving. We also are leading others in training first responders in event of an accident to preserve lives as much as possible. As AA Kenya, all our services are geared towards making the whole motoring experience safe and we therefore begin from training and retraining motor vehicle operators to be safe drivers as this is the beginning of maintaining safe roads.
AA Kenya also carries out constant advocacy to the public on all possible platforms to support messaging on importance of good road safety practices. We employ channels in mainstream media i.e. television, radio and print, along with alternative media, i.e. social media. We also have our own inhouse tool, the Autonews Magazine on which we publish information on safe road use and vehicle maintenance to uphold the safety of road users from individual level.
AA Kenya driving school.
Last year, even as we approached the 100-year mark, we made the decision to address the unique needs of our members. In light of this, we repackaged our product offering to provide a choice array to allow everyone to be a part of us. We therefore have a choice 3 packages for individual membership: Classic; Prestige and Premier. We also have Corporate membership and Access Membership (for those who would like to make use of AA Kenya services for a short period of time. Lately, we have also launched AA Kenya Junior Membership which is introduced as a Road Safety Club in schools to encourage children to embrace good road safety practices from a tender age. That way, we churn out well cultured adults in matters road safety at the end of the programme.
To join AA Kenya is now as easy as a tap of a button. By simply dialling *650# on your mobile phone, you can sign up for membership easily. Our website www. aakenya.co.ke also provides a platform for joining the Association with complete steps at the end of which one will be a member. Should you wish to do it personally, you
can easily walk into any of our many branches countrywide and get instant assistance in order to begin enjoying our wide array of services.
AA Kenya remains head and shoulders above the rest as a provider of quality services to motorists. We are also champions of road safety and have, many times, partnered with stakeholders in the industry to push the road safety message even further. We also sponsor several
We also take the message to the grassroots by practically training road users in observing safe road practices. This includes the bodaboda users along with public service vehicle operators. AA Kenya membership currently stands at slightly above 100,000 members. In the near future we hope all the country’s motorists will be represented under the AA Kenya arm. Our plan is also to influence the entire country to embrace good road safety practices. As such, we are doing our best to influence Kenyans from all quarters, race and tribe, age and all walks of life to start embracing the notion so as to reduce road fatalities by 100 per cent.
www.destinafrica.co.ke
Destin Africa 26 Fintech
JUMO: A Full Tech Stack for Building and Running Financial Services
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By Dinko Svetic, Country Manager, JUMO Zambia riefly tell us about JUMO and its mandate?
JUMO is a full technology stack for building and running financial services. We use advanced data science and machine learning to create the fastest and leanest financial services infrastructure. What products are in your stable now and what can customers look forward to?
To date, we have launched mobile credit products in all of our active markets. Our products are accessible, easy to use and understand. This is important since many of our customers have had minimal or no contact with financial services before. We have two types of credit products: a shortterm, single repayment loan and a longerterm installment product payable monthly. We recently launched a savings product in two markets giving customers the ability to save regardless of their location or the type of phone they have. Using mobile money infrastructure we’ve removed the time-consuming task of going to a branch to deposit or withdraw money.
which incentivises positive financial behaviour and serves as a financial education tool.
JUMO is also building a points programme
Our biggest differentiator is the way we use behavioural data, such as mobile money activity, to develop alternative credit scoring methods. We don’t require access
We are in the process of adding more financing options for merchants who stand to benefit most from access to working capital to grow their small businesses or for cash flow. www.destinafrica.co.ke
A customer accessing JUMO through his mobile phone. [Photo/Courtesy JUMO]
What sets JUMO apart from other providers in the industry?
to a customer’s social media information, or that they use a smartphone or mobile data to access our products and services. This helps keep the cost of accessing finance low for customers. How is JUMO leveraging new technologies to promote financial inclusion?
JUMO analyses alternative data sets to
27 Destin Africa Fintech
enable access to financial services to the most un(der)served people.
Consider, for example, a female merchant who is a mother working in a local market in Lusaka. She sells a crate of bananas a day and after settling her expenses, has to be able to put food on the table. At the end of the day, she may not have enough money to buy another crate of bananas to sell the next day. But, if she has access to a small loan, she can buy two crates of bananas and sell more to boost her income. The additional income could pay for school fees and other family essentials. All smiles. [Photo/Courtesy JUMO]
gain insight into new ways of creating opportunities that can address shortfalls in the financial system. For instance, we are able to use data to identify excluded groups that don’t have appropriate access to finance, such as women. Women in emerging markets remain financially underserved for cultural, social and geographical reasons. Our data science teams are able to use machine learning to identify certain behaviours in these groups so that we can customise products and services for them. What are some of your key milestones since establishment?
Since it was founded in 2015, JUMO has served over 14 million customers across six markets in Africa and Asia. We’ve disbursed over USD 1 billion to entrepreneurs and small business. While we are proud of that, we are not blind to the fact that there are still hundreds of millions of people in Africa and Asia who remain financially underserved. We are working on ways to reach them and serve their needs. Can you comment on the role of financial technology in the social and economic transformations of emerging markets? Financial technology has the potential to
With proper, responsible lending practices and sufficient customer education, financial technology can transform lives. If scaled sustainably this affords us the opportunity to have a positive social impact on entrepreneurs and their communities. Any emerging trends in line of your business and how you intend to take advantage?
There are two trends relevant to our business – the increase in smartphone adoption across Africa and an increase in mobile money use by individuals, businesses and governments. For example, Nigeria has historically experienced slow growth in the mobile money space, but since the government fast tracked the operation of mobile money services, the country is positioning itself for steady growth. This creates opportunities for financial technology companies, especially JUMO who partners with MNOs to deliver greater value for customers. These two trends will enable us to grow our financial services products and reach a greater volume of customers. Where do you see JUMO in the near future? Any other pertinent issue?
[Photo/Courtesy JUMO]
JUMO currently operates mobile financial services in five African countries, but this is set to grow exponentially as we expand our suite of existing products and develop new ones. We’re operational in Pakistan, India, Bangladesh and South-East Asia identified as future growth opportunities for advancing financial inclusion. www.destinafrica.co.ke
Destin Africa 28 Cyber Security
By john muraya
Cyber Security is no Longer an IT Problem But a Business Problem
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he Chief Information Security Officer now has a seat at the decision makers table and the message to the rest of the board is that security is a shared responsibility. If policies and awareness measures are not spread across all departments, then there is little the IT team can do to ensure safety of the entire organization.
Gartner (2018) predicted that global spending for Information security would exceed 124 Billion dollars in 2019. Risk management and privacy issues within the Digital Transformation initiatives were cited among the reasons that will drive additional spending on security solutions through to 2020 in more than 40 percent of the organisations. Detection, response and privacy would be the main drivers for the need of cybersecurity solutions.
According to the National Kenya Computer Incident Response Team (2019), 11.2 Million Cyber threats were detected in the first quarter (Jan- March 2019), an increase of 10.1 percent compared to the previous quarter. Malware cases detected stood at 8.8 Million followed by Web application attacks at 1.2 Million. Botnet and DDoS attacks stood at 1.1 Million among others. For the above reasons, it is important to know that an ISP like MTN Internet comes ready with DDoS protection so that you can enjoy your peace of mind. In 2017, Kenya lost about Ksh. 21.1 Billion to cyber crime which was an increase from 15.1 Billion in 2015 according to a 2017 Kenya Cybersecurity report. This gives us a rough idea of how much a cyber security breach can cost a business.
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29 Destin Africa Cyber Security
Cyber security experts are few in Kenya, and it is also very costly to constantly train and equip your available teams. Managed Security Services Provides (MSSPs) can take this burden off your company
In this era where different technology platforms are being used to drive business competitiveness, is your defense team well prepared to secure your platforms and safe guard you from losses?
Increased Cloud usage and moving devices on the network are like a double-edged sword. They favour businesses and employees by creating efficiencies and cost savings while at the same time exposing company networks to a lot of security risks. They increase attack surfaces that enable cybercriminals to accomplish smarter attacks.
Is your defense team smarter? Cyber criminals are always willing to collaborate and share information freely compared to defense teams. This increases the sophistication of cyber criminals. For your defense team to protect your company effectively, they have to outsmart the hackers. A hacker aims to win once but organisations must always win. Given the above challenges, it is time for security and business management teams to shift to agile cloud delivered security solutions. Such solutions will simplify and increase intelligence of security architectures away from the rigid traditional appliance based-point solutions that can no longer cope with the rising sophistication of cyber-attacks. It is time to implement solutions that provide prevention, detection, investigation, and response to safeguard businesses from losses.
Cyber security experts are few in Kenya, and it is also very costly to constantly train and equip your available teams. Managed Security Services Provides (MSSPs) can take this burden off your company. MTN is a Managed Security Service Provider with certified security experts and has partnered with top cyber security providers who continuously and heavily invest on Research and Development to ensure clients are always covered affordably. John Muraya, is a Senior Manager: Solutions Architect at MTN Business. For any enquiries call 020 7600600 or email: yello.ke@mtn.com
www.destinafrica.co.ke
Destin Africa 30 Real Estate
By Reuben Kimani
Increased Infrastructural Growth in Machakos County Driving Up Demand for Real Estate
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nvestment in infrastructure by the government had a positive effect on different sectors of the economy. This is according to a Monetary Policy Committee Markets Perceptions Survey by Central Bank of Kenya that sought to field responses on the impact of infrastructural projects in various counties. An increase in real estate investment was reported alongside increased economic activity by business people on account of proximity to upcoming roads, railways and other key amenities. In Summary • Investing are shifting from investing in the Capital City to fast developing counties such as Machakos due to availability of key amenities. • Real estate investors are more keen to invest in areas with infrastructural developments.
• An area such as Matuu in Machakos County is already standing out due to good roads and proximity to key amenities.
Investors rate the quality of infrastructure as a top consideration when determining where to invest according to a survey done by Urban Land Institute. Notably, Machakos County has made itself attractive to both local and international investors. In June, the county unveiled a Ksh12B budget for the 2019/2020 Financial Year, with healthcare and infrastructure receiving a lion’s share. The County is also set to build an airport with a proposal already tabled in the County Assembly allocating Ksh100 million for the facility’s initial set-up. Real estate in Machakos County has seen land prices go up due to available www.destinafrica.co.ke
31 Destin Africa Real Estate
Investing are shifting from investing in the Capital City to fast developing counties such as Machakos due to availability of key amenities amenities and its proximity to Nairobi which is approximately 66 kilometres.
People working in Nairobi can now consider investing in this area which is gearing up to be a real estate giant alongside Kangundo Road, Kiambu and Kajiado. An example of an area in Machakos is Matuu, which is standing out due to good roads and proximity to key amenities.
In a recent report, Nairobi emerged as the most expensive city to build in Africa, after South Africa’s Johannesburg according to a report by Design and Consultancy Firm Arcadis. This among factors such as the cost of land in the area, the desire to live in areas with less congestion and with sufficient amenities is gradually witnessing investors shift from investing in the Capital City to fast developing counties.
Machakos County has witnessed increased demand for land and housing as people move in to do business here leading to high level of construction activities influencing the overall growth of the county’s economy due to its attractiveness to potential investors who value road network as a key element in commerce and industry.
In conclusion, the county continues to make massive investment on infrastructure and when trusted real estate companies offer genuine real estate investment opportunities and deliver title deeds, investors will be able to develop their properties and engage in activities that will positively influence the growth of a county. The writer is the Chief Executive Officer, Username Investment Ltd. www.destinafrica.co.ke
Destin Africa 32
Cloud Computing
5 Key Considerations for Your Journey to Cloud By Andrew Sordam
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ccording to the IDC’s Kenya Enterprise ICT Market 2019 Outlook, 1,9 million USD is predicted to be spent on ICT in Kenya this year alone. The Kenyan government is prioritising it’s Big Four Agenda; which spans investment and development in manufacturing, food security, healthcare and housing. In order to achieve these objectives, the Government will focus on emerging technologies such as blockchain, IoT, cloud and data analytics.
CEOs and CIOs on the continent have cloud at the centre of their digital transformation strategies, knowing fully well that without automation they will either be out of business, or be steering an organisation towards undesired directions. The ability to harvest, store and sort big data is a critical element of business competitiveness. The higher the use of autonomous technologies, the more the competitive edge! In the process of devising a cloud adoption strategy, most companies realise that they can’t transition all workloads or business processes at once; considerations span Service Level Agreements, Data sensitivity and security, business continuity, cost and legislations/regulations. The challenge, then, is to carve out a transition plan that supports co-existence of on-premise and cloud based applications – hence ensuring minimal disruption when migrating pieces of software to the cloud in a chronological fashion. There are 5 key considerations to take into account when carving out this transition plan; we explore these below. Mapping your cloud-ready journey Understanding how to achieve results www.destinafrica.co.ke
33 Destin Africa Cloud Computing that impact, not only the organisation, but the greater economy is crucial. Building a pathway to becoming cloud-ready should be an integrated approach, one driven by cloud strategy, policy and an innovative culture. Planning and preparation with the right cloud strategy are imperative to achieve the desired success The path forward will vary, depending on where the organisation is starting. Each organisation will take a unique journey, following its own timeline. That said, most organisations could follow one or more of five use cases that describe the requirements they face on their journey:
Streamline and modernise If your enterprise does not have immediate
CEOs and CIOs on the continent have cloud at the centre of their digital transformation strategies, knowing fully well that without automation they will either be out of business, or be steering an organisation towards undesired directions
plans to move to the cloud in a big way but does want to streamline its infrastructure. This kind of enterprise should work towards reducing technological complexity by replacing older servers, storage and backup systems with modern systems that are architecturally compatible with systems powering private and public cloud services.
Accelerate time to value With the aim of maintaining and growing its competitive edge, most innovative organisations need to do more with less, and faster - a necessary ingredient to live up to the rising expectations of both, the shareholders and customers, alike. In such a situation, an appliance strategy can provide great benefit. Today’s modern appliances come preconfigured to serve different purposes, such as to support a database, a private cloud environment, UNIX, or big-data applications. Because appliances are easy to deploy and operate, requiring less time and fewer specialised skills, IT departments are able to implement and manage them quickly, with a reduced learning curve, avoiding the hassles of testing and integration.
Optimise and extend private cloud Many organisations first implement private cloud to achieve lower costs and greater agility for generic, non-critical workloads. Most self-assembled generic private clouds take months to build out, resulting in decreased agility and expensive personnel to build, tune and manage. They typically require expensive licenses and support contract to run generic workloads. The recommended way forward therefore, is to adopt platforms that are optimised for cost and/or performance. Generic workloads can run on the Oracle Private Cloud Appliance, optimised to deliver low-cost computing for Linux, Solaris, and Windows applications while more-demanding applications operate better on purposebuilt engineered systems. This provides an easy path to public or hybrid cloud, with unified management across environments.
Optimise and secure critical applications Business-critical applications require peak performance and security. However, in many organisations, the infrastructure supporting these applications has
been built over time and is lagging in modernisation, and is now inconsistent with currently available mix of platforms.
The result is an overly complex environment that does not always deliver the required performance or security. Enterprises, here, would be better off identifying applications that manage data of low sensitivity to move them to the cloud. Back-ups, learning and test & dev environments would easily fit into Oracle’s IaaS offerings with a reduction in cost (eradicating cost of hardware, cooling, data centre space, labour). For the residual applications, high-end SPARCbased servers will optimise performance while improving efficiency with the highest security, whether implemented on-premises or on the cloud. Moving to a single platform will also bring cost savings and unified and simplified infrastructure management. Consolidate and protect data with advanced storage solutions Every company is facing data storage and protection challenges. With the everincreasing explosion of data volumes, simply adding to an existing storage infrastructure is no longer affordable nor effective. The better approach is to implement modern storage solutions that are built to eliminate data loss and cut recovery times. Voluminous data can be off-loaded to the cloud which offers ample security and ease of access management. Same data can be accessed from any authentic IP source, rendering the data loading and access process more streamlined and less costly.
Take control of your future For each of the considerations, Oracle delivers cloud-ready systems that have precise equivalents in Oracle’s own public cloud. In this way, the public cloud appears as a compatible extension of what already runs in your data centre, making it easier to move when you are ready. Even if you have no immediate plans to move to the cloud, it is a nice option to have. In the meantime, you are able to bring many benefits of the public cloud into your on-premises infrastructure and accelerate the process of innovation. By Avinash Ramtohul, Managing Director, Mauritius and Cloud Architect Leader, Sub-Saharan Africa, Oracle. www.destinafrica.co.ke
Destin Africa 34 Real Estate
By RE/MAX Kenya
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Are You Cut Out for a Career as a Real Estate Agent?
t is never too late to become a Real Estate Agent. Just so that you know early enough, you can become a successful one.
Are you ready for that? Do you have the passion for it? Maybe you have been in the industry but you have stagnated and desire to grow. Or, maybe, you are switching from another career such as banking or insurance. You now would love to dip your toes in Kenya’s real estate ocean – and then dive headlong into it for the swim of the rest of your life.
Are you prepared for this? What do you need to do to launch a successful Real Estate agency career? To help you launch a successful real estate agency, we have prepared some brief notes and tips to set you off. Read on and decide when you want to join one of the most lucrative businesses around – and enjoy the ride of your life.
Passion This is really the first thing you need to have. Are you passionate about helping people buy or sell properties? Remember, you will become the bridge between buyers and sellers of property. Both of them could be quite demanding and picky. You will deal with both parties and provide them with useful information and expert advice. And so, you will need to be dedicated and willing to invest your time in doing this. Would you love to do that? Training
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35 Destin Africa Real Estate
Let’s agree: You need relevant training to become a successful estate agent.
Don’t you think so? Fine, we know that almost anyone with the passion and right attitude can sell property. But, to get that edge and offer your customers real value, you absolutely need the right training. In addition to deep knowledge about the industry and the market, you need negotiation, customer service, marketing, communication and goal-setting skills, among others.
Arm yourself with the right skills and you can confidently join the field. The more you learn, the more you earn. Values Operating without clear values is akin to wandering in a massive forest without a compass. You need a strong moral compass to fairly deal with buyers and sellers of properties. You must always be ethical in your dealings with your customers. Do not misrepresent, exaggerate or engage in acts of deception. The law prohibits unethical behaviour in all aspects of real estate practice, including advertising, property disclosure, listing agreements and contract facilitation. That is fraud.
Know that integrity and honesty will take you far in the real estate business. You can be sure that your customers will spread the good word about you – for free. Referrals will stream in, earning you more commissions. Won’t you be happy that your customers are helping to market you? You must also exhibit the highest standards of professionalism. This will be seen in your commitment to offer excellent real estate services to your customers. Paint the correct picture of situations so that your customers make truly informed decisions. Don’t you think so? Learn More To become an outstanding Real Estate Agent, you need to choose a reputable Real Estate firm that offers you an opportunity to learn and grow your career through continuous training. RE/MAX Kenya
www.destinafrica.co.ke
Destin Africa 36 Economic Growth
By PricewaterhouseCoopers LLP
Africa’s CEOs Continue to Look for Growth Opportunities Amid Economic and Socio-Political Uncertainties The Agenda compiles results from a survey of 83 CEOs across 19 African countries
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frican business leaders are less optimistic about the strength of the global economy and their organisations’ ability to grow revenues in both the short and medium term than they were a year ago. A quarter of African CEOs (25%) believe that the global economy will decline over the next 12 months. These are some of the key findings from the 7th edition of PwC’s Africa Business Agenda 2019 report, launched at the biannual World Economic Forum on Africa in Cape Town.
The unease about global economic growth is also dampening CEOs’ confidence about their own companies’ outlook in the short term, with 27% of CEOs stating they are ‘very confident’ in their own companies’ prospects for revenue growth over the next 12 months. Furthermore, only 39% are ‘very confident’ about their organisations’ growth prospects over the next three years. Commenting on the survey findings, Dion Shango, CEO for PwC Africa, says: “As they look forward to the year ahead, African CEOs are less confident about the prospects for the global economy than they were a year ago. The same is true when they consider the prospects for their own organisation’s growth. “In Africa, economic and policy uncertainty, among other issues, have cast some doubt upon business leaders’ hopes for immediate and future growth. Although there is a drop in optimism, www.destinafrica.co.ke
Business has an essential role to play in building and fostering trust in society and CEOs should embrace the responsibilities and trust this brings
37 Destin Africa Economic Growth
African business leaders do see some opportunities on the continent – but overall, they are playing it safe.”
The Agenda compiles results from a survey of 83 CEOs across 19 African countries. The results are benchmarked against the findings of PwC’s 22nd Annual Global CEO survey of more than 1 300 CEOs, conducted during the 4th quarter of 2018. The Agenda provides an in-depth analysis and insights into how businesses are adapting to meet the challenges of operating in Africa. Notwithstanding the current economic climate and other challenges, there is notable optimism among business leaders about the potential to unlock more growth on the continent. While the US, China and the UK continue to be the most dominant traditional markets for growth opportunities, it is notable that 20% of African CEOs ‘don’t know’ where else to look for growth and 5% say there is ‘no other country’ they would look to. The report suggests this may reflect the current economic and political climate. Main risks to doing business in Africa Ongoing economic, social and political uncertainty is a perennial worry for CEOs globally, not least for those in Africa.
Concerns over policy uncertainty, skills shortage, over-regulation and exchange rate volatility lead the long list of risks causing anxiety for CEOs in all regions. What stands out in these findings is that a consistently higher proportion of African CEOs say they are ‘extremely concerned’ about these issues compared to their global peers. While this is troubling both for businesses and the countries in which they operate, it is noteworthy that the proportion of CEOs who are concerned has in many cases declined since our previous survey. For instance, 39% of African CEOs were concerned about social instability in 2019 (Global: 18%) – this was a significant improvement on the previous year’s results (50%), suggesting that in many countries conditions are ‘less bad’ than they were before. Africa’s CEOs’ are mostly concerned about sociopolitical and economic threats, with 41% ‘extremely concerned’ about
uncertain economic growth (Global 24%), unemployment (Africa 33%; Global 13%); populism (Africa 33%; Global 28%), exchange rate volatility (Africa 42%; Global 26%) and inadequate basic infrastructure (Africa 35%; Global 17%). Of business threats, 43% of African CEOs (compared to 35% globally) said they were ‘extremely concerned’ about over regulation, 35% (compared to 30% globally) cited cyber threats, and 45% (compared to 34% globally) were ‘extremely concerned’ about the availability of key skills.
Trade conflicts and trade arrangements It is notable that trade conflicts and protectionism do not make the top ten list of concerns in Africa. In fact, there are a few countries in Africa that stand to benefit from trade tensions elsewhere. While some of these issues present barriers to business and trade, there are also fresh prospects for revenue growth because of new trade arrangements. As the rest of the world is embroiled in trade conflicts, African countries are looking at opening their markets to trade. The African Continental Free Trade Agreement (AfCTA) is at the centre of this activity. The agreement establishes the Continent Free Trade Area – the largest in the world in terms of participating countries since the formation of the World Trade Organisation in 1992. In general, African countries don’t trade much with each other. Currently, trade in Africa forms less than 3% of global trade. The low trade figure is due to several issues, namely poor infrastructure on the continent, high tariff rates on imports, bureaucracy and red tape, and problems at border posts.
“To boost economic growth on the continent, it is vital that African countries improve trading with each other and invest in infrastructure to drive trade,” Shango comments.
Plans for growth and expansion A large proportion of African CEOs (93%) are ‘somewhat confident or ‘very confident’ about their organisation’s prospects for revenue growth over the next three years – higher than the global average of 85%.
Faced with uncertainty around current markets, CEOs are turning inward to drive revenue growth.
African CEOs identified operational efficiencies (Africa 80%; Global 77%), organic growth (Africa 76%; Global 71%) and the launch of a new product and service (Africa 58%; Global 62%) as their primary drivers of revenue growth. Only 36% of African CEOs (Global 37%) said they would look enter a new market in pursuit of revenue growth. Technological advances and data The forces of globalisation and technology are transforming the workplace. A high percentage of African CEOs (83%) ranked technological advances among the top three trends to have transformed the workplace most in the past five years.
Despite massive investments in technology, CEOs identified a vast gap between the data they need to inform decision-making and the adequacy of the data they receive. African CEOs say the primary reasons for this is due to data siloing and a lack of sharing of information (Africa 59%; Global 51%), as well as poor data reliability (Africa 57%; Global 50%).
Most CEOs in Africa are taking a waitand-see approach to the use of artificial intelligence (AI) in the workplace – currently 35% (Global 23%) of CEOS have no plans in place to pursue AI initiatives right now, but 46% (global 35%) have plans to launch AI projects in the next three years. African business leaders are looking to governments to assist with the management of AI. Most CEOs (Africa 76%; Global 65%) believe that governments should incentivise organisations to retrain workers whose jobs are automated by AI. Shango concludes: “As social, political and economic events shift the boardroom, African CEOs need to step forward to make a meaningful contribution and rebuild confidence for the long term. Business has an essential role to play in building and fostering trust in society and CEOs should embrace the responsibilities and trust this brings.” PricewaterhouseCoopers LLP (PwC) Africa Business Agenda Report
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Destin Africa 38 Fighting Fraud
Fighting Fraud From The Top By Ayanda Kotobe
Fraud is at its essence the result of mirroring
W
hy do we stop at traffic lights? It’s not because we are naturally attuned to seeing red as the order to stop. If that were the case, red dresses and apples wouldn’t be as popular as they are! Red catches our attention, but we stop at a red light because everyone else does. Humans copy each other. It’s often said that if you want someone to be more comfortable with you, mimic how they sit or stand. Psychologists call this ‘mirroring’, but it doesn’t just happen during social gatherings. Seeing someone drop a bit of trash or cutting a traffic light gives us a slight nudge into thinking it’s okay. If they are doing it, maybe I can too.
Fraud is at its essence the result of mirroring. It would be convenient to consider all fraudsters as hardened criminals who’d sell their granny if the price were right. But fraud investigators often point out that such activities have simple beginnings. The Enron scandal, so devastating that it destroyed an American energy giant, had its roots in some minor manipulations to meet earnings expectations. Yet when the people involved got away with that, they scaled up and even justified their actions as legitimate - at least to themselves. This is why fraud prevention starts at the top. There has to be no tolerance among an organisation’s leaders for fraud. When accountability and consequences are lacking, fraud will thrive. The culture of an environment, as well as its treatment of ethics and governance, will reflect
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39 Destin Africa Fighting Fraud
management’s attitude towards fraud. Leadership attitudes are fundamental, reinforced by internal controls to spot fraud. Illegal activities usually involve acts that siphon amounts from a business’ coffers. These can include payroll fraud, writing double cheques for payments, skimming tax money or over-ordering 1. A common fraud in South Africa and elsewhere is to overvalue a purchase and split the difference with the supplier. More recent activities include credit card fraud and bank scams. The Bankers Association of Botswana warned last year that fraudsters are becoming increasingly savvy about loopholes, especially technology
ones, that organisations are not fixing fast enough.
In all these examples, it only takes a few people to abuse the trust they earned. Sadly, it’s the company that suffers when their wrongdoing is uncovered, usually because it became cataclysmic... These can be prevented by internal checks and structures to monitor governance and compliance. Companies should also create pipelines for concerned parties and whistle-blowers to relay their suspicions. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) sets out the following
five components for an effective fraud prevention system 2: control environment, risk assessment, control activities, information & communication, and monitoring. These work together to establish sound internal controls through directed leadership, shared values and a culture that supports accountability.
Increasingly, more of these controls can be automated in modern companies, particularly where high transaction volumes take place. It’s additionally effective to consolidate suppliers to a few that you know can be trusted and are serious about their integrity. Creating reliable procurement channels with those suppliers will help employees stick to legitimate activities.
There is also no reason any more to be ignorant of a company’s finances: even if you have accountants and other fiscal gatekeepers, it is possible with modern software services to generate ad hoc reports and scrutinise patterns using visualisation dashboards. At Kenya’s major banks, employee fraud is often a greater risk than third-party fraud 3. Headline-grabbing South African frauds such as seen at Fidentia and Steinhoff were perpetrated by the very accountants meant to have policed such activities.
It might sound as if the fight against fraud means reducing trust in employees. This isn’t the case. Instead, it is about narrowing those gaps where fraud might take place, so as not to normalise such activities. The tone should start at the top, from leadership and management who embrace sound controls and good governance. Consequences must be enforced and felt. Everyone will eventually ignore a traffic light if they see enough people do this. In some countries, you can see traffic officers haplessly direct vehicles that ignore them. Are all those drivers criminals? In terms of traffic laws, yes. But did they start as criminals? No. And do they see their behaviour as bad? It’s unlikely. Not until they are caught - and if it were business fraud, by then it might be too late for their employers. Finance Director at RS Components
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Destin Africa 40 Health & Fitness
Dr. Charles Muteshi
I
Couples Should Seek Professional Advice Regarding Fertility Issues
n the majority of cultures, having children is seen as fulfilment of a social contract and the obligation of the couple is to meet this expectation.
No definition for how long the wait should be is socially enacted, and often ignores personal circumstances such as career aspirations and financial stability. Couples will often make the assumption that insofar as they are sexually intimate, fertility is guaranteed except where a conscious decision to use contraception is made. Fertility is dependent on four important parameters namely, regular ovulation with patent (open) fallopian tubes in the female partner and normal sperm parameters in the male partner. In addition, there must be regular intercourse to allow the egg and sperm to meet and fertilise. What is often not understood is the chance of conception in one fertile ovulatory cycle, medically known as fecundity. This is the probability that a female partner will conceive in every month of being fertile when they try to. Generally, fecundity stands at about five percent, in other words, for every one hundred fertile females only about five will conceive during each month of trying. It therefore implies that couples ought to consistently and regularly attempt conception over a period of time to be successful. The secular duration of trying is taken as 12 months in which time nearly 85% of couples become successful. Often, there is a tendency that to enhance conception, the attempt is made at specific www.destinafrica.co.ke
41 Destin Africa Health & Fitness
times of the month, typically at around ovulation.
This is however an erroneous assumption because the outward signs of ovulation become apparent after the egg has been released. The female egg, has a very short lifespan typically about 24 hours and quickly becomes dehydrated and desiccates but the sperm cell remains viable for several days in the female genital tract. In essence, couples are advised that trying for two to three times a week gives them the highest chance of conception. When a couple feel concerned that there may be a problem preventing conception, sometimes it is obvious what the issue could be. In most instances however, this is unbeknown to them. It requires an explanation from a health worker going over pertinent issues and tests. Attending a medical consultation together provides the opportunity to dispel myths around fertility, remove blame and enhance engagement with treatment. This also offers the chance to signpost the couple to other essential support services such as counselling.
A comprehensive assessment of fertility includes examination of a semen sample to check for correct sperm parameters, testing ovulation and lastly checking the patency of fallopian tubes. The sequence of testing should be logical enough to allow prompt arrival at the right diagnosis and avoid unnecessary testing. Overall, half of fertility issues may be related to sperm and the other half to female factors including ovulation and tubal blockage. The medical approach therefore would be to start investigation by the least invasive tests, that is semen analysis and ovulation check. This means that if the sperm parameters are normal then assessing to check that the fallopian tubes are open is the next logical step as this helps to determine whether a chance of natural conception exists.
Generally, a couple feel more reassured and ready to engage with treatment when their experience is enhanced by an empathetic team who are ready to give as much information and allow shared decision making respecting values and opinions. It may be exasperating going through fertility
investigations and may be a roller-coaster experience.
Whereas knowing the factors contributing to subfertility is important, particular diagnoses can be devastating, such as blocked fallopian tubes, severe sperm abnormalities and ovarian failure. Couples may feel frustrated, angry and could tend to want to blame certain situations in their own life experiences. Relationship strain may also occur. This is the moment where the health care team should be very supportive and also engage counselling services. Options for fertility treatment should then be discussed sensitively paying attention to the individual couple circumstances and offering information based on current best evidence. A greater majority of couples may require assisted reproductive treatment such as in vitro fertilisation (IVF). This is usually a major decision for a couple to make as it involves financial commitment, uncertainty about success and risks that come with this. It is important that a couple have factual and up-to-date information in an easy to understand rubric. They should never feel rushed to undertake this treatment and counselling support is crucial to making this decision. It helps a great deal when both partners attend clinic for these discussions. Sometimes effective treatment is faced by certain barriers or constraints. It should never feel the end of the road for the couple as other options must be explored.
These include discussing use of donor gametes or alternation parenthood options such as adoption, foster parenthood or use of surrogacy arrangements. It calls for a sensitive and empathetic fertility specialist to navigate around these issues. Whereas individuals may have various coping strategies, important for the couple is family support and also support groups such as Waiting Wombs Trust. Legal opinion may need to be sought in some circumstances.
Dr. Charles Muteshi, Fertility Specialist at Aga Khan University Hospital, Nairobi www.destinafrica.co.ke
Destin Africa 42
TRAVELWISE
Silverstone Air starts direct flights to Homa Bay
K
enya’s fastest growing low cost carrier, Silverstone Air has added Homa Bay town to its growing list of destinations it connects.
Effective September 2019, the carrier will start direct flights from its Wilson Airport hub, Nairobi to the upgraded Kabunde Airstrip.
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Speaking to the media, Silverstone Air Sales and Marketing Manager, Mr Patrick
Oketch said that buoyed by their general acceptance and the desire to connect the whole country, the airline has completed all the paperwork including carrying out test flights to Kabunde Airstrip.
‘’We are delighted to include Homa Bay town in our growing list of destinations that we serve. This new service which will be a daily one is expected to help the people in and around the great county access affordable and reliable air service,’’ Oketch said.
43 Destin Africa TRAVELWISE
Fencing around the facility was also reinforced and an all-weather road between Homa Bay and Rongo which is used to access the facility fully tarmacked.
Oketch said that the journey from Wilson Airport to Kabunde airstrip is estimated to take 35 minutes flight. He said that the introductory fare is Sh6,500 for a one-way trip.
The Kabunde airstrip was modernised in 2015 by the Kenya Airports Authority (KAA) and received its first commercial flight in January 2016.
Sh200 million was used to upgrade the facility into a modern usable airfield with Glanack Investments Company hired to undertake the upgrade works that included the expansion of the runway to 1.2 kilomtres length and a new apron constructed.
He said that on the particular route, Silverstone Air shall be deploying a Dash 8-100 type of aircraft that has a capacity of 37 passengers. ‘’If demand dictates, we shall also introduce late afternoon flights to Homa Bay,’’ the manager said.
Already, Silverstone operates daily flights from Wilson to the serene Kenyan Coast into Mombasa, Diani, Malindi and Lamu. It also flies to the Maasai Mara, Eldoret, Wajir and Lodwar. Its recent services include charter operations for cargo in and within the region.
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Destin Africa 44
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