Destin Africa
Kshs. 300 / Ushs. 9000 Tshs. 6000 / RWF. 2200 ISSUE 31 / 2020
SELF-TAUGHT INTERIOR DESIGNER WITH A MAGICAL TOUCH
HELLEN KAHENYA, FOUNDER, H. KAHENYA INTERIOR DESIGN. www.destinafrica.co.ke
Destin Africa
www.destinafrica.co.ke
Destin Africa
Find new tastes in a country full of avour. Start SomethingPriceless
Mas t erca rd
2
DISCOVER EXPLORE EXPERIENCE
Take off with the card that’s accepted across Africa and around the globe. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
www.destinafrica.co.ke
Destin Africa
www.destinafrica.co.ke
Destin Africa
www.destinafrica.co.ke
Destin Africa
0787 939 968
FURNISH YOUR LIFE. NAI R O B I
M O M B AS A
0787 939 968 www.taradesigns .co.ke www.destinafrica.co.ke
TARA D e s i g n s
L t d
Editor’s note
5 Destin Africa
Coronavirus Pandemic Impact on the Economy The coronavirus disease 2019 (COVID-19) is a world-shattering event that has far-ranging effects. The novel coronavirus outbreak, which began in Wuhan, China, has left tens of thousands sickened and others dead. The virus is now spreading like wild fire, and has expanded to touch nearly every corner of the globe. Although governments are adopting emergency measures to manage the crisis and contain the disease, the effect on the global economy is obvious. The disease is shattering lives, disrupting markets, leading to business closure and loss of jobs. The most affected sectors are the airline, hospitality, stock markets, manufacturing, petroleum and flower industries. The travel industry has been badly damaged, with airlines cutting flights and tourists cancelling business trips and holidays. Fear of the virus and government advice to stay at home is also having a devastating impact on hotels and restaurants. This has seen restaurant bookings in several countries almost completely collapsing. Flower farms have been partly shut down since the disease has impacted the international flower trade. This has led to loss of job and unpaid leaves among workers. Big shifts in stock markets, where shares in companies are bought and sold, have affected many investments in pensions or individual savings accounts. Investors fear the spread of the coronavirus will destroy economic growth and that government action may not be enough to stop the decline. It has also triggered extreme fear in financial markets as investors face up to an unsettling reality of a global recession. Actually, the consequences of COVID-19 are more than we can just imagine. According to scholars, the global economy is expected to contract in 2020. It is expected to grow at its slowest rate since 2009 this year due to the pandemic, according to the Organisation for Economic Cooperation and Development (OECD). The outbreak may also plunge the world’s economy into a global recession, according to S&P Global. The longer the pandemic lasts, and the more dramatic the efforts are to contain it, the more profound the effects will be for the global economy. In this regard, countries across the globe must take policy actions to protect the economy. They include protecting affected workers and businesses, and lowering the price of credit and ensuring abundant liquidity.
info@destinafrica.co.ke
www.destinafrica.co.ke
Destin Africa
WE ARE A STABLE, FINANCIALLY SOUND INSTITUTION, PROVIDING TAILOR-MADE PRODUCTS AND SERVICES TO ADD VALUE TO YOUR LIFE, TIME AND MONEY. JOIN US TODAY
Stima Sacco is a licensed deposit-taking Sacco established in 1974 with branches countrywide
You can get easy access to a variety of benefits and facilities that will help you maximize opportunities to secure your financial freedom. Visit us to know more about how to invest with us and accelerate your financial growth and stability.
www.destinafrica.co.ke
Call us on 0703 024501 or email info@stima-sacco.com for more information.
Contents
7 Destin Africa
18. Corporate News
5. EDITOR’S NOTE 10. GET INSPIRED
20 . Insurance
22. RETIREMENT
12. CORPORATE NEWS CFAO Group Mi vida Visa Knight Frank
18. TECHIE Internet Solutions Partners with icolo.io to enhance its Data Centre Services Offering
20. INSPIRING WOMAN Hellen Kahenya: Self-Taught Interior Designer with a Magical Touch
MOBIKEZA by Octagon Africa: A Timely Plan to Help Kenyans Save For Retirement
www.destinafrica.co.ke
Destin Africa
Editor-in-Chief : SUSAN ARMSTRONG
GET 25% OFF
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 Hasnain Noorani Dr. Rose Kamenwa David Bunei Maxim Nartov Flora Kange’the
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
One year's subscription to the digital edition of Destin Africa www.destinafrica.co.ke
www.destinafrica.co.ke
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
© 2020 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 24. FINANCE
26. Real Estate
Pioneer Credit: A New Kid on the Block
32.
OPINION
30. CLOUD COMPUTING 32. CLOUD TECHNOLOGY 34. PERSONALIZATION 36. CUSTOMER EXPERIENCE 38. MANAGEMENT 40. HEALTH & FITNESS Caesarian Section Delivery Increases the Risk of Allergies in Young Children
42. DESTIN MOTOR
42. DESTIN MOTOR 2020 BMW 2 Series Gran Coupe
44. TRAVELWISE Coronavirus Casts Shadow over Hospitality Industry
www.destinafrica.co.ke
Destin Africa 10
Get Inspired Provoking Quotes By Entrepreneurs And Executives
“ “
“ “
From personal experience, I would say just do it. Most people don’t ever start because they don’t want to be seen starting at the bottom. Don’t be most people.
Always be cognisant of the difference between quantity and quality. They are two different things. There is hard work and then there is smart work.
Neema Kinoti, founder, Ohana Family Wear Limited
“ “
The worst thing you can do is sit down and stop moving. Keep pushing forward and know that eventually the storm will clear up and you will reach the other end.
Jesse Moore, M-Kopa Solar
www.destinafrica.co.ke
Navalayo Osembo, Enda Athletic (Kenya)
“
Investors don’t look for a great idea or one which gives people goose bumps, they look for an execution plan.
“
Tumi Phake, Zenzele Fitness (South Africa)
Destin Africa
We Arrange The Best Solutions For You
� Travel Insurance � Motor Insurance � Health insurance � Fidelity Guarantee
� Fire Insurance � Group Life Insurance
Pan Africa Life House,4th Floor, Kenyatta Avenue | P.O. Box 40906 -00100 Nrb www.amana.co.ke | + 254 725 584 441 | +254 734 584 441
www.destinafrica.co.ke
Destin Africa 12
Corporate News
Ambassador Dennis Awori (left) the Country Delegate of CFAO Group congratulates Erwan Catto (right), the Managing Director of LOXEA Kenya during the launch of the Company’s corporate leasing and fleet management services.
CFAO Offers Mobility Solutions For Corporates Through LOXEA Operating Leasing And Fleet Management
O
perating in 21 West and Central African countries, LOXEA was created 11 years ago to offer short and long term rentals for corporates. This is now the name for Tsusho Capital Kenya and is the new CFAO mobility solution. Welcoming guests for the launch function, Ambassador Dennis Awori, the Country Delegate of the CFAO Group, stated, “The Group motto is ‘With Africa for Africa’ and is a commitment to the continent’s economic growth and industrialization
www.destinafrica.co.ke
together with creating jobs and offering products for the growing middle class and corporates, we are also offering solutions that are convenient and make the lives of our customers better.One of these solutions is provided by LOXEA. Erwan Catto, the Managing Director LOXEA Kenya said, “Our ambition is to become the preferred mobility partner for corporate customers, with key focus on safety, cost management and quality.” Our strength is to count on an existing Pan
African customer base enjoying the LOXEA customer experience and to be able to offer a large portfolio of brands and models from our exclusive CFAO dealers Toyota Kenya and DT Dobie.
He explained the benefits to the customers by pointing out that the customer only pays for what is used and has a mobility solution which is always available. This enables corporates to focus on their core business by outsourcing the management of fleets to experts with adequate capacities. As a result there is a saving from high quality services covering fuel efficiency and safety. For large fleet customers, LOXEA can also provide full fleet management services including driver supply, driver management, pool car management, car sharing and safety programs including training and in-plant support.
13 Destin Africa Corporate News
L-R Punit Bhudia, Director at Esteel Construction Ltd, Manu Bhudia Director at Esteel Construction Ltd, Chris Coulson, CEO Mi Vida and Krupa Chohan, Sales Director Mi Vida during the official awarding of the construction contract. This follows the recent approval of construction permits received from Nairobi County Government. Esteel Construction Limited are the official contractors of the Mi Vida Housing Project.
Mi Vida Gets Green Light for Garden City Project
N
ew home builder gets approval from Nairobi County Government. ● Project has sold 93 units off-plan in phase one since its launch in August 2019. ● Construction of the first phase of the middle-income housing project to kick off immediately. Mi Vida, a Ksh. 12 billion middle income housing project has now received the greenlight from the Nairobi County government to proceed with construction. The first project will be rolled out within the Actis’ Garden City mixed use development where a total of 628 residential units with the first phase of comprising 208 units commencing immediately.
Confirming the approval, Mi Vida CEO Chris Coulson said the contractor Esteel
Construction Ltd is onsite and ready to start construction of phase one at Garden City along Thika Road. The project is expected to be complete in 24 months.
“We finally got our approval from the county authorities last Friday and our contractor has been selected and is on ground ready to commence construction. Certainly, it has been a long wait, however we can assure our customers that we are now starting to build.”
The units range from one bedroom, two bedroom and three bedroom sitting on a 4.5 -acre parcel of land, adjacent to the popular Garden City Mall, off Thika road. So far, 93 units have been sold off plan since August last year when Mi Vida launched into the market. The home builder targeting the middle income segment launched its operations in Kenya in July last year. The project is
a Kshs. 12 billion joint venture between Actis, a leading growth markets investor across Africa, Asia and Latin America, and Shapoorji Pallonji Real Estate (SPRE), the real estate arm of one of India’s largest conglomerates and aims to construct over 3000 residential homes in Nairobi. Mr. Coulson said there remains an underlying demand for quality homes in the middle income segment and there is a notable lack of institutional quality homebuilders with the expertise, capital and consumer trust to truly address the opportunity at scale. “This gap is what Mi Vida seeks to close in the market for quality middle income housing,” he adds.
Once complete, Mi Vida will boast of unique health and sports facilities such as an indoor gym with yoga and fitness studio, multi-purpose sports court, 300 meter outdoor jogging track and outdoor gym. Additionally, residents will also have access to special community and leisure amenities such as a barbeque deck, both an adult and children’s pool, social events hall, kids play area, crèche and over one (1) acre of landscaped gardens. www.destinafrica.co.ke
Destin Africa 14
Corporate News
Visa Makes KES 242 Million Grant to Economically Empower Kenyan Women Owned Micro Businesses
Visa is also investing in Hand in Hand’s IT infrastructure to support digital program data and collection, which will be scaled across all 23 of Hand in Hand Eastern Africa’s field offices.
This initiative is part of Visa’s broader commitment to support women’s economic empowerment, which is expanding to include additional access to education, tools, services and networks that empower women everywhere, from the smallest micro businesses to established small businesses around the globe. In 2020, Visa will continue to lead initiatives that unlock the socio-economic barriers women face in business and contribute towards inclusive economic development globally.
Hand In Hand International CEO Albert Wambugu (left) and Visa General Manager for East Africa Corine Mbiaketcha (right) receive hand crafted wooden utensils from Jack Nyawanga, Co-Founder and Secretary General of the Victor.
V
isa has announced a $2.4 million (KES 242 Million) grant to Hand in Hand Eastern Africa to support low-income business owners in Kenya. The program aims to help improve the livelihoods and resilience of 10,000 individuals in Kenya – 75% of which are women– by offering them business and financial skills training, mentorship and financial services. The three-year project will bring tailored skills to two distinct groups of micro business owners looking to grow their businesses.
Speaking during the announcement of the grant, Corine Mbiaketcha-Nana, the Vice President and General Manager East Africa at Visa said that women play a major role in the economic growth of any nation, hence Visa’s decision to support the Hand in Hand Eastern Africa initiative. “The women in our lives play a key part in not only in the growth of our homes, but also the growth of our country’s economy and it is with this in mind that Visa is partnering with Hand in Hand Eastern Africa to empower women business owners”. Albert Wambugu the Chief Executive Ofwww.destinafrica.co.ke
ficer of Hand in Hand Eastern Africa said, ”Hand in Hand works with women micro business owners because of the unique barriers they face, and because when those barriers are overcome, whole communities win. Together with Visa, we aim to help at least 10,000 individuals in greater Nairobi start or scale up their businesses through a combination of specialist training and mentorship”.
Members in the project’s first group, the Launchpad, will receive Hand in Hand Eastern Africa’s business and skills training, financial inclusion and links to bigger markets, developed and adapted for maximum impact over 15 years. Members of the second group, the Accelerator cohort, will have a full-time business, at least one employee and successful loan repayment history. It is also expected that they will have a clear vision for how to grow their businesses, and an entrepreneurial mind-set to match. This is a new segment for Hand in Hand which Visa is collaborating on to pilot the project. The program will also promote financial health by increasing access to group banking and access to formal financial services.
About Visa Inc. Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa,visa. com/blog and @VisaNews.
About Hand in Hand Hand in Hand Eastern Africa (HiH EA) is a registered NGO in Kenya with mandate to operate within the Eastern Africa Region. It is part of the Hand in Hand Global Network that comprises affiliated organizations that mutually pursue the shared goal of poverty alleviation while supporting poorer communities to create sustainable enterprises and jobs. The organization is currently operating in 21 Field offices within 26 Counties in Kenya. HiH EA has so far mobilized, trained and is training over 300,000 members (80% women, 40% youth) who have created over 296,000 enterprises (30% eco-enterprises) and over 400,000 jobs on the Kenyan programme.
15 Destin Africa Corporate News
2020 has delivered a renewed appetite for residential real estate investments, with 80% of the wealth managers reporting their clients had an increased interest in making commercial investments in residential properties
Left to right: Ben Woodhams, Managing Director Knight Frank Kenya, Mwihoti M’Mbijjewe Head of Marketing Knight Frank and Andrew Shirley, Editor the Wealth Report.
Kenya’s Wealthy Stay in Property, Target Health and Retirement Facilities as Rising Asset Classes
K
enya’s wealthy have identified healthcare and retirement property as the most interesting areas for commercial real estate investment in 2020, according to Knight Frank’s Wealth Report Attitudes Survey issued today. In a survey of wealth managers across Kenya, 27% reported that their clients were planning to invest in commercial property in 2020.
When asked which segments of the commercial property were becoming more interesting for wealthy investors, health and retirement property topped the league table, with 100% of managers saying the segments were becoming more interesting, as Kenya’s population over-55 now passes 3.5m people. Ben Woodhams, Managing Director Knight Frank Kenya, said: “The need for more care and retirement facilities in Kenya has
been largely overlooked until now, but as The Wealth Report 2020 Attitudes Survey shows, the country’s expanding elderly cohort, growing middle class, and ongoing rural-urban migration, is creating new needs for such facilities.” Commercial property in healthcare and retirement typically spans care homes and daycare centres, private hospitals, acute hospitals and surgeries, dentists’ surgeries, pharmacies, supported living and retirement villages.
Retirement villages, which have been a rising asset class globally, most often create clusters of residential properties in beautiful surroundings with on-site caretakers, medical facilities and medical staff. The villages also often provide servicing of the homes, across laundry, cleaning and, in some cases, catering. Andrew Shirley, Editor of The Wealth Report, said: “As elderly parents become
further removed from their adult children as a result of migration, and professional lives put families under more pressure when faced with taking care of the elderly, retirement villages can often provide an ideal solution for everyone, leaving the elderly in their own homes, but with ample support.” Conversely, the real estate segment drawing the slowest growth in High Net Worth Individual interest is now industrial property, which was recently the golden child of the sector. Industrial property typically spans factories, industrial parks, light industrial properties and warehousing and has drawn a series of large new investors in the last two to three years, which may account for the relatively subdued interest in the sector in 2020 as the current investments bring a stepchange in the volume of new industrial property coming to the market. Kenya’s rich are also showing relatively less interest in investing in property debt than in other areas of real estate.
However, 2020 has delivered a renewed appetite for residential real estate investments, with 80% of the wealth managers reporting their clients had an increased interest in making commercial investments in residential properties. They also reported surging interest in student housing, which has been a hotspot of new activity in recent months, recently establishing a funding precedent when Kenya’s first green bond was launched to fund student housing. www.destinafrica.co.ke
Destin Africa 16 Techie
Richard Hechle, Managing Director, Internet Solutions (IS).
Internet Solutions Partners with icolo. io to enhance its Data Centre Services Offering
C
onverged ICT Services Provider Internet Solutions has signed a partnership with IT Infrastructure Company, icolo.io, to boost its data centre and cloud services offering to their clients.
The partnership will see Internet Solutions provide colocation and cloud services within iColo’s Nairobi and Mombasa data centres in addition to its existing Nairobi Chancery facility. iColo.io designs, builds and operates state of the art carrier neutral data centers to serve a broad spectrum of clients. Speaking during the signing, Internet Solutions’ Executive Head of Cloud and Business Consulting Richard Muthua said in this era of a data driven economy, it is important that businesses keep their data
www.destinafrica.co.ke
safe, secure and readily available when needed.
“It is with this knowledge that Internet Solutions continues to provide, amongst other solutions, data management and colocation through our network of data centers across Africa and globally. With this agreement, our clients stand to benefit from a fully managed colocation service, in a vendor agnostic, Tier 3 / PCI DSS/ ISO 27001 certified data centre, leading to enhanced operational resiliency” he said.
Muthua noted that Internet Solutions will also provide the option of fortifying client’s environment with the firm’s world class monitoring as a service that include Security monitoring and incident response, managed security services, Voice, Cloud PBX, managed data backup solutions,
Business continuity and disaster recovery services, private, Hybrid and public cloud solutions.
Commenting on the partnership, iColo. io Chief Executive Officer Ranjith Cherickel said: “We are proud to be IS’s infrastructure partner in building world class connectivity products to serve enterprise consumers in Kenya. Our role is to provide services to a variety of new and existing customers. In addition, we help create an environment for IS to interact with content delivery networks, enterprise customers and global connectivity partners. This agreement between IS and iColo.io is a step further, in providing a world class client-centric enterprise experience.”
With Internet Solutions and iColo working together, clients can now benefit from lower costs and improved resilience by securely housing their information systems and networking equipment in the facilities which are operated to global best practices by the two organisations.
Destin Africa
www.destinafrica.co.ke
Destin Africa 18 Inspiring Woman
Hellen Kahenya: Self-Taught Interior Designer with a Magical Touch Talk about passion and Hellen Kahenya’s name will pop right up. She is a creative who is gifted and is confident in her talent. Kahenya believes there is absolutely nothing that’s stopping her www.destinafrica.co.ke
from pursuing her passion to its optimum. She left a well-paying job at VisionFund - a microfinance company of the World Vision Kenya in 2012 to start her own Communication Consultancy
(Communication Works) and later on H. Kahenya Interior Design in 2016. In her own words, “if you desire to start a business after employment, consider your skills set and your passion, then give it your best years- when you are young and energetic”. We recently visited Ms. Kahenya at her office at SK Offices, along Raphta Road Westlands and we had a brief chat with her regarding her career and entrepreneurship journey.
19 Destin Africa Inspiring Woman
Who is Hellen Kahenya? I am an Interior Designer out of passion and a communication strategist by training. Whatever I choose to do, I do it with passion, applying myself fully and give of myself wholly to the process. Above all, I’m a mother and a Christian. My faith has defined my journey a lot. I take each day as it comes; hoping that others could stick along and gain something in the process. Tell us about your educational/ professional background? After form four, I started drawing portraits of flowers and I would give them to my sister who would in turn sell them off to her colleagues in the office. But my sister was a hustler and she roped me into her embroidery business. That is where I learnt embroidery techniques and drawing repetitive patterns; I loved it! Especially because I got paid for assisting her. I managed to save some money which I used for registration and admission for
a Bachelor of Science Degree in Business Administration. I later pursued a Masters Degree in Strategic Management at the same University.
I joined the Tourism Trust Fund in 2003 as an intern. I was later absorbed as a fulltime employee to manage the affairs of the CEO office and the PR Agency. In 2006, I joined KADET (Now VisionFund) as an Executive Assistant to the Director and to set up the Communication function. While at VisionFund, I pursued a professional Diploma in Public Relations; an online course by the Chartered Institute of Public Relations (CIPR). It was an amazing experience and there was so much to learn. My boss was gracious with me as I set up systems at the pace of my studies. But as I neared the end of the course I was encouraged to consider agency experience at Tell-EM PR. This was the same firm that supported Tourism Trust Fund and as fate
would have it, I was part of an amazing and very experienced team that supported Nokia, Visa, CBK and Tourism Trust Fund, my first employer!
I got married in 2008 and I considered a break from work as I leaped into this new season. While on the break, my former boss at Vision Fund called me back to head the Communication department.
This is where I honed my communication skills; I learnt so much from stakeholder engagements, to internal communication, to brand strategy and all things brands! I was at a good place. But by 2011 I was a mother of 2 and I was already feeling the pressure: Pressure to nurture my children and be with them‌at home and pressure to take on more assignments at work. I was restless. In 2012, I decided to resign from my job and venture into consultancy. I set up Communication Works in 2012;
www.destinafrica.co.ke
Destin Africa 20 Inspiring Woman
communication agency that would later offer communication support to microfinance institutions.
How did you get started as an entrepreneur? I spent the first 4months looking up my networks, setting up the company profile and attending scheduled meetings to pitch for business. However, getting clients was not easy. I sat through many meetings and waited through very many promises before discussions converted into actual business. I had my first client in 2013. The business grew and I secured a few other accounts. Communication is my first love. I feel connected whenever I take on a communication assignments. It is a central function that easily reveals the strengths or struggles of an entity. Indeed Communication does work!
Tell us more about H. Kahenya Interior Design? I enjoy hosting people in my house, and each time, my visitors would be impressed with the setting in my house. Some would recommend that I pursue design as a business yet others would ask for ideas for their own homes. I was always intrigued to hear feedback about my house because my investment was always below the expected or imagined. I wanted regular change in my spaces so I frequently changed furniture around the house; and I loved the possibilities I saw each time I changed things around. But I also loved how I felt; I felt satisfied! I began to entertain the idea of setting up an Interior Design business. I did my research, I saw the need and I was ready to take the plunge. As I was thinking of how to start, I hosted a lady who later requested me to design select spaces in her house. I scheduled a site visit and I finally felt like IT! Before I could leave, she asked if my business was registered. I told her not yet and that I was still pursing it as a hobby. She looked at me straight and muttered, “I cannot leave my house in the hands of someone who is not confident enough to believe in their gift’.
I left her house and immediately begun the registration process for H. Kahenya Interiors Ltd. I lost the business but I found my passion in 2016. I would take pictures www.destinafrica.co.ke
of general sections of my house and post them on mainly Facebook. Because I wasn’t active on social media, it took sooo long before anyone could notice what I was about. It was agonizing to constantly check media and find no likes, no followers, and no views…I simply didn’t exist! I had to admit that I was gifted and no likes meant nothing in as far as my gift was concerned. So I continued to post and slowly the audience grew. I wanted organic growth so I did Facebook Live and Youtube videos to engage with the audience. It was overwhelming yet deeply satisfying. More and more people became aware of the brand and today we do more than interior décor; we interpret architectural drawings and guide clients on interior finishes, we design interiors to match client habits and patterns, we renovate to modernize houses; and we occasionally stock unique home merchandize that add life and character to spaces. We have partnered with Twakutukuza Trust to run a love makeover campaign for cancer patients every year. In this, we fundraise for the project and we work with a family member to execute it as a surprise to the beneficiary. It is our outpouring of love to these patients.
What motivates you in your business? My identity in Christ, has played a big role in my quest to run an ethical business. I learn something new each day as I strive to offer better service, better experiences for every opportunity. The understanding that I am a steward of this gift drives me to inspire others whenever I can. I do this through internship opportunities that we extend to Interior Design Students every 3 Months. Happy and Satisfied clients keep me going; each time a client states that the outcome is better than their wildest imagination, then I know that we not only delivered a beautiful space but also captured their hearts!
Have you faced any challenges? Yes! Many. Running a creative business is not easy. Sometimes clients downplay the designers time and effort and do not want to pay for it. This is not good for the designer and for the client’s project. Trust is an important element in this work; trust that the designer has the client’s best interest at heart and client commitment
that the payment will be made in full within the agreed timelines.
What are your future plans and aspirations for your company? A lot of money is wasted and lost whenever individuals set out to build their homes.
The process from the start to finish is often not clear to many. H.K interiors plans to create awareness to this group of people and help them to make better decisions during construction. This is a critical group that is offering more opportunities for the industry to thrive. I also plan to host our second Interior design Session on…Starting your Own Interior Design Business. Further, we are in talks to build capacity to interpret architectural drawings for residential properties for better space utilization and personalization.
Advice to aspiring interior designers? There is room for everyone. Package your skills set, find your courage and start! Keep off the temptation to pass off internet pictures as yours. Instead, invest in a camera or a smart phone with a good camera and use your own pictures to promote your business. Then be patient; the business will come. And when it does, will it find you ready? Invest in yourself; spend time reading design magazines, watching design channels and walking with a mentor/coach.
Advice to those who want to start up? Do not go into employment and wait until you are retired to pursue your passion and make money from it. If you do this, most likely it will not work. If you want to start a business, give it your best years when you are young and energetic. Think about the business you want to start. Do your research and learn from those that are already in it. Are you passionate about it? Is it getting you out of your comfort zone? If you don’t know what your passion is, listen to what your friends and people around you say of you. Young people should not be afraid to start and run businesses; some may fail but some might flourish; that’s an entrepreneur’s life. The only way to know is to start. The government will not create jobs for everyone.
Destin Africa
Grow as a Business Entity And Individually With Us Professional Services Offered: • Book Keeping and accounts • Business Advisory • Payroll Management Services • Tax Advisory and Consultancy
To power your business contact us today : 0722 335 472 / 0721 861 973 Email: info@clesmaconsultants.com www.destinafrica.co.ke
Destin Africa 22
Insurance
Collinson and Kenbright’s team during the launch.
Collinson Launches New International Healthcare Solution to Further Extend its International Insurance Reach Collinson SmartHealthTM International launches in Kenya, in partnership with Kenbright.
G
lobal customer benefits and loyalty company, Collinson, has launched an all new international healthcare plan, Collinson SmartHealth™ International, in Nairobi, Kenya. The solution is delivered in partnership with Kenbright, one of Kenya’s leading medical insurance providers. SmartHealth International will deliver a suite of new affordable health insurance
www.destinafrica.co.ke
products aimed at Kenyan companies, which want to protect and give peace of mind to employees and their families. Administered by Kenbright Healthcare Administrators Limited, Collinson will be harnessing its in-house insurance and assistance expertise to provide regional and international access to an extensive network of medical providers. Designed by healthcare experts, SmartHealth International enables
employees and their families to flexibly access international medical advice, treatment and support across the globe, whenever it is needed, through Collinson’s global network of health providers and in-house 24/7/365 medical assistance capability. Each case will be individually managed and assessed by Collinson’s expert medical team. The plans can include wellness, optical, dental and medical second opinion and traveller support services and can be tailored to individual company requirements and budgets. Collinson believes that there is a significant opportunity to enhance the way international healthcare propositions are delivered. By utilising the expertise across Collinson’s loyalty and benefits capability, companies in Kenya can now offer their employees access to the best medical treatment available at home and globally. This also includes additional benefits such as digital doctor services, international medical second opinion and traveller support services accessing the Collinson
23 Destin Africa Insurance
global lounge network and security and medical advice when travelling.
In fact, recent third-party research commissioned by Collinson revealed that the vast majority (88%) of consumers in Kenya found the proposition to be attractive, with preventative and wellbeing and digital doctor services being rated attractive by 82% of the respondents. Lawrence Watts, Head of Insurance at Collinson, said: “We are delighted to partner with Kenbright to launch this new health solution to the market. With healthcare infrastructure under pressure, especially within critical care, providing healthcare alternatives to consumers is vital. The research we carried out highlighted a strong consumer demand for international solutions; 41% surveyed stating that they would travel abroad for medical treatment, if required. “This launch, in partnership with Kenbright, means that companies in Kenya can give employees and their families access to the best possible overseas treatment through our in-house medical expertise and worldwide network of partners.”
Collinson envisages offering the plan in other countries in the region by partnering with local insurers, as well as building in its wider travel, assistance and insurance products and loyalty solutions to create a truly differentiated and holistic health plan within the comfort of a concierge travel experience.
Ezekiel Macharia, CEO at Kenbright, added: “We are thrilled to be launching this proposition in partnership with Collinson. Our team has worked hard to create an international healthcare solution that not only offers Collinson’s international insurance and assistance capabilities, but will also harness local technology in Kenya, allowing our customers access to a robust network solution.” For further information, please visit https://www.collinsongroup.com/enmeai/protect/international-healthcare Research: 252 professional mass affluent Kenyan residents were targeted in August 2019 using an online survey using third-party MSI-ACI marketing consultancy.
Hon Lord Mayor – City of London at Collinson Kenbright Launch.
About Collinson: Collinson is a global customer benefits and loyalty company. We deliver exceptional travel, assistance and insurance solutions to corporate organisations around the world to help protect, assist and care for their employees and customers.
With more than 35 years’ global assistance experience and our in-house qualified medical staff, our expertise in medical assistance underpins our unique insurance and assistance propositions. As one of the largest independent medical assistance companies, we answered more than 1 million requests for assistance, managed over 40,000 medical cases and conducted over 3,000 aero-medical evacuations last year alone.
Collinson is also chosen by the world’s leading payment networks, 1,400+ banks, 90+ airlines and 20+ hotel groups to craft customer experiences that win competitive edge. Our customer benefits products
include the world’s leading airport experiences programme, Priority PassTM, as well as travel insurance, identity assistance, flight delay and travel risk management solutions.
About Kenbright Healthcare Administrators Limited: Kenbright Healthcare Administrators Limited is a duly registered medical insurance provider (MIP) with over 20 years’ experience in the medical insurance field. We take pride in our highly qualified and specialized actuaries whose combined expertise ensures best service in the medical sector. Kenbright Healthcare Administrators Limited has attracted and sustained its global clientele through professional excellence and client trust. We walk a personal journey with our clients by providing customized solutions in both retail and corporate sectors.
www.destinafrica.co.ke
Destin Africa 24
Finance new businesses or expand existing ones. It also finances salaried staff.
One of the major products offered is bodaboda loans. “We did a quick desktop survey and realized that, the National Transport and Safety Authority (NTSA) registers at least 15,000 bodabodas every month,” observes Ogutu. Most of the riders however don’t own the bikes. To that end, PCL has partnered with dealers in Nairobi, Eldoret, Kisumu and Naivasha to empower riders to own motorbikes. The company finances up to 80 percent of the value and customers are required to pay between Sh 400 to Sh 500 every day.
PCL’s Executive Chairman, Mr. Evans NYAGAH (right) during the signing of the MOU with Little Ltd.
Pioneer Credit: A New Kid on the Block
The credit only microfinance aims to change the lives of people left out by the mainstream banks by empowering them with credit facilities
I
n Kenya, the microfinance sector has come of age. The industry has grown exponentially over the years with some microfinance institutions evolving into fully fledged banks. Demand for microfinance products remains strong especially among small and medium enterprises (SMEs) as well as majority of people at the base of the pyramid. While the country has 43 banks and a range of microfinance institutions that are expected to serve over 40 million people, majority remain locked out of financial access, a gap that calls for a depth of financial services to address. “There are many MSMEs and individuals in the country that are not able to access capital, especially after the introduction of interest rate capping by the Central Bank, says Joshua Ogutu, General Manager at Pioneer Credit Limited (PCL). With regard to that, Ogutu feels there is a great opportunity to lend, the reason why PCL was founded. www.destinafrica.co.ke
He further notes that for MFIs to address the issue of financial access, they might need to merge, as in the case with the banks, to have the muscle to contribute more positively. Headquartered in Nairobi, PCL is a credit only microfinance institution. It was founded in 2018 with a focus of providing financial support to individuals and businesses on flexible terms. The company’s vision is to offer a variety of financial services to different sectors of the economy. Product offering Nowadays, consumers have become more informed as far as financial products are concerned. Most of them are shopping around for the cheapest possible products, but which meets their financial needs.
In this regard, PCL has embraced product innovation, focusing on what satisfies their customers’ needs. The microfinance institution mainly offers loans to entrepreneurs who either want to set up
To mitigate risks, PCL has partnered with an insurance company to take up comprehensive insurance cover for the bikes before they are released to the customers. They also install a tracking device that shows where the bikes are at all times. Another product offered is check off loans where a loan is given against your salary and deductions done directly. The product targets salaried individuals, and in particular the civil servants. Ogutu observes that it is one of the safest portfolios and it has picked up very well. The loan has a repayment period of up to 60 months at very competitive rates. Moreover, the MFI offers Pioneer CASH, a mobile based loan that is accessed using the USSD code *454#. According to the general manager, access to mobile lending is going up by day, but at the same time, default rate is also rising to as high as 30 percent. To mitigate that risk, Pioneer CASH is not open to everyone but is only available to civil servants or entities where we have existing MOUs with the employer. The loan has a repayment period of up to 3 months, and customers can repay via Mpesa or allow their employers to deduct. PCL also offers loans against logbooks. The product is designed to enable clients derive maximum value from their motor vehicles. The logbook acts as the collateral. “The loan is disbursed within 24 hours,” observes Ogutu. The MFI advances up to 3 million based on the clients’ ability to repay. Recently, the company signed a Memorandum of Understanding (MOU)
Destin Africa
Slogan: Together we fly high
Vision: To be the Financial institution of choice in positively transforming livelihoods & enterprises. Mission: We exist to satisfy our customers need through offering innovative products in the most efficient and effective way.
Mr. Joshua OGUTU, General Manager-Pioneer Credit.
with Little Cab that allows taxi drivers to apply for a smartphone loan. Dubbed Pata Simu Lipa Mdogo Mdogo, the service will enable drivers’ access better quality mobile phones that will enable them to better carry out their businesses. The drivers are required to pay for their phones via a daily or weekly charge for a period of three months. This, according to Ogutu, is a revolutionary concept that will enable drivers to improve on their service delivery. Other products in the pipeline include invoice discounting, which is set to be rolled out in early 2020.
Why Pioneer Credit? What differentiates PCL from other financial institutions is that it offers innovative products that are aimed at allowing its customers to access affordable credit. It also believes in excellent customer service and quick turnaround time in the processing of its loans through the use of digital platforms. The MFI is founded on a social mission of uplifting people, as opposed to merely making huge profits for its shareholders. “We are more of a social enterprise with a small profit margin,” says Ogutu. It has also partnered with various stakeholders and launched innovative products to improve the lives of its customers. To continue with its noble course, PCL hopes to transform into a deposit taking microfinance in the next three to four years. It is worth noting that many people remain locked out of accessing financial services due to lack of awareness. In the financial sector, only a few Kenyans patronize their products. To this end, the MFI endeavors to create awareness to ensure increased uptake of its products.
Commenting on interest rate capping, Ogutu says the move is good for the country, but it has restricted financial access to some SMEs and individuals who are viewed as too risky. “While the intention of capping was to offer affordable credit to consumers, it has however locked out many as most banks prefer lending to the government and other institutions.” Despite this, the financial services industry has a lot of potential. It has had major disruptions in the last few years such as mobile phone-based lending that has helped grow access to credit.
Core Values: Visionary Integrity Customer Focus
Team work Innovativeness Professionalism
TAI SACCO SOCIETY LIMITED gives convenient range of products and services to suite the general public. They include; Loan Products: Account types: 1. Agri based Loans & Advances 1. Ordinary Account 2. Business Loans and Advances 2. Children Account 3. Salary and Pension Loans 3. Business Account 4. Chamaa / Group Loans 4. Special Account 5. Fixed Deposit 5. Holiday Account
You can also access a range of our products and services tailored conveniently to suite you Mobile Banking – Register, dial *645# and there you go! Mpesa Paybill – Mpesa paybill no. is 644700 (Deposit to your Account, anytime, anywhere) E- loan – Quick, convenient and timely soft loan on your Mpesa wallet. Personal Cheques – Personalized cheque book. Visa Branded ATM Card – Access your Account anywhere worldwide! Sacco Assurance – We have partnered with CIC insurance and gotten insurance cover just for you! Biogas Loan – We are ready to go ‘GREEN’ – Affordable domestic cooking solution for all households Inua Jamii – We have partnered with KCB to bring government fund for the aged close to you.
Our Branch Network Githunguri, Gatundu, Kamwangi, Kagwe, Kigumo, Ruiru, Thika, Githurai, Kimende and several mobile offices. 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 www.destinafrica.co.ke
Destin Africa 26
Real Estate
Denver Group: Taking Real Estate a Notch Higher Real Estate – A tricky yet lucrative investment. With the prevailing wave of fraud and scam in real estate investment, you might be left wondering‌ how can I maneuver in this industry and make returns instead of losses? Get plots with ready title deeds through Denver Group today!
D
enver group has a remarkable story behind its success. It is rather obvious that the journey of entrepreneurship is coupled with its own share of challenges. Not every entrepreneurial venture leads to fruition. Entrepreneurship is all about sticking to an idea relentlessly, under the guidance of the primary goals, while avoiding mistakes that may derail the growth process. An entrepreneur is not only able to identify opportunities but also implement strategies that will make the said opportunity a leeway to success.
In the realization of the modern Nairobi, we cannot deny the fact that settlement has been dense over the past years. Any city
www.destinafrica.co.ke
in such a scenario compels its inhabitants to identify locations close-by that will offer them the opportunity to settle. This translates to urban growth. Fortunately, infrastructure within Nairobi have been expansive enough; hence, offering not only easy access to the outskirts, but also added settlement convenience. Denver Group has been keen on identifying the most ideal locations for those interested in settling within the outskirts of Nairobi. Since inception, Denver Group has been very active in seeking ways into the real estate industry, and this has already been achieved to the greater extent. Today, we are proud to confirm that we are an established real estate company, with
strong interest at heart to make settlement possible for you. ‘The company was established in 2015, with the sole objective of creating an investment in real estate that provides affordable real estate and empowers property investors through selling of value added plots within Nairobi and its environs, which are enhanced to suite immediate residential settlement, commercial investments, and capital gains. It all started with a few parcels that we managed to purchase. The initial magnitude that we had in the real estate market sired the idea of establishing a company that will open up larger wings for more benefits to a larger audience. So, what do you stand to gain in real estate investment? Did you know that chances of making losses in real estate investment are minimal and almost zero? Did you also know that real estate investment has a countering force to inflation? How about making immense returns in both short term and long term basis? All these attributes describe real estate investment. No one invests money to count losses. Rather, it is always an investment to make profits, and huge returns for that matter. Real estate never disappoints when it
27 Destin Africa Real Estate
comes to convenience, lucrativeness, and returns.
The Driving Force Ever fallen prey for real estate fraud? If yes, then you can confirm how disheartening and tormenting the experience can be. The founder of Denver Group was once a victim of fraud and this was definitely a cup of tea. A whooping Ksh 300,000 went in the blues just like that and there was little he could do. ‘Real estate industry is subject to a lot of cases of fraud. To set the path straight, I thought of coming up with a company that will restore trust among the land buyers by offering value for their money. With authentic title deeds, any land buyer will definitely have trust in the seller.
The experience of owning personal land also made significant motivation highlights
Denver Group has developed an eye of interest along Kangundo Road the director. “I was privileged to own a plot of land in Nyeri back in 2012. This time, my Ksh 550, 000 yielded fruits, and I was a proud landowner, He recalls. This also made me want to share the same experience with others by offering them a leeway to real estate investment.”
Projects Complete and Underway Our zeal for success has seen us maneuver through smoothly so far. We have managed to complete some major projects with
some taking place currently. We are happy to have successfully completed one at the Ruiru Kamaki’s.
Denver Group has developed an eye of interest along Kangundo Road. Apart from being a point of convenience, in terms of, access, Kangundo Road also offers an expansive environment, with a vast population of Nairobians opting to settle there. We are happy to announce that we have launched our two latest projects, which are underway along Kangundo Road, that is, Grace Gardens Estate in Malaa, which is just 800 meters from the tarmac for a price of 850,000 shs per plot and Brooklyn Ridge Estate in Joska, which is just 1.8 Kilometers off Kangundo Road for a price of 800,000 shs per plot. It makes it an ideal opportunity for you to settle in a strategic and prime location along Kangundo Road. www.destinafrica.co.ke
Destin Africa 28
Retirement
MOBIKEZA by Octagon Africa: A Timely Plan to Help Kenyans Save For Retirement
The unique pension plan allows Kenyans to save any amount they are comfortable with to secure their future By Jennifer Nyawira
L
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 many Kenyans.
Statistics from the pension industry regulator Retirement Benefits Authority (RBA) show that only 20 percent of Kenya’s labour force is under formal pension plans. The situation is grave in the informal sector, which constitutes of 80 percent of Kenya’s workforce. Just a negligible percentage has subscribed to pension plans. This makes poverty in the old age a reality and if the uptake does not go up, the working population in future will have the unenviable task of supporting both the retirees and the generation which has not attained employability age. Despite the scary statistics, Kenya’s pension industry has made major 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
www.destinafrica.co.ke
Godwin Simba, Managing Director, Octagon Pension Services Limited.
of the rising opportunities in the industry. In an effort to enhance the savings culture in the country, pension providers have been on an overdrive to roll out retirement plans that seek to tap into the unexplored market. One such product is MOBIKEZA, a flexible and effective micro-pension solution that was introduced into the market by Octagon Africa in August 2019. “It is the first of its kind, a fast and convenient way for Kenyans to save for retirement,” says Godwin Simba, Managing Director at Octagon Pension Services Limited. “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.”
“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,” he adds. Under the package, low income earners, especially those in the informal sector can now save as little as one shilling daily towards their retirement.
Mr Simba notes that this group of people has for a long time been neglected by the formal pension industry and is ultimately
condemned to poverty in old age. But with MOBIKEZA, an innovative individual pension plan, informal sector workers including craftsmen, mechanics, mama mbogas, farmers, entrepreneurs or even individuals seeking to increase their retirement savings among others can now save for their retirement with ease.
MOBIKEZA is a hassle free retirement savings plan that makes use of a mobile based platform. Customers can dial the USSD code *237# and save within two minutes. For those with smartphones, they can download the MOBIKEZA app from the Google store. The mobile phone penetration rate in Kenya stands at 84 percent meaning that Octagon’s innovation is strategically placed to meet the needs of a majority of economically active Kenyans both in the formal and informal sectors. In this age where technology is a key ingredient of business growth, solutions that are aligned to mobile technology are a driving force in bringing the services closer to the customers. With the launch of MOBIKEZA, Mr Simba believes that there is a possibility to increase pension coverage in the market and at least get to the standard of the global economies of about 80 percent. However, that can only happen if individuals in various sectors of the
29 Destin Africa Retirement
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.
economy can conveniently save for their sunset years with ease.
Game changer Since the plan was launched in August, it has been well received by many people who have hailed it as a game changer in the industry. “Within the first month, 5000 members had registered for the pension plan. We are seeing a rate of between 300 and 500 new savers every day, indicating a positive uptake,” says Mr Simba. The company targets to have close to one million customers in the next one year.
It is the flexibility that comes with the plan that makes it a clear favorite for individuals keen on saving for retirement. It is very easy to register and make contributions via a mobile phone. It takes approximately two minutes for a new saver to start saving. They are required to fill in their ID numbers, full names and their set target amounts. The ID numbers are aligned to the mobile numbers and this helps to protect the identity of the savers. Going forward, Octagon plans to introduce
MOBIKEZA in its subsidiaries in Uganda and Zambia in the near future.
Octagon Pension Services is a registered administrator and is regulated by the Retirement Benefits Authority. Its key business is pension administration. It also engages its members through education and awareness creation in a bid to increase pension uptake. Growth The pension industry is about 20 years old since the enactment of the Retirement Benefits Act. According to Mr Simba, it is still a growing industry that has not yet matured in terms of infrastructure and awareness. “We have increasingly seen the funds grow from Kshs 50 billion to Kshs 1.2 trillion as of 2018. It means there is substantial growth in fund size, which is ideally close to 20 percent of the gross domestic product (GDP).”
Kenya has only 3 million savers, and about 80 percent come from the formal sector. In 2016, Retirement Benefits Authority reported that the retirement savings rate in the country stood at 13 percent, against
the world’s average of 20 percent. Gross savings rate has also dropped by almost a half in 10 years according to statistics.
There is no doubt that the current unemployment rates of 43 percent signals the fact that people who are not employed do not have the disposable income to save. At the moment, old age poverty stands at around 55 percent. This data signals a scary scenario to look into the next 10 to 20 years.
In as much as we are in an economy that has no surplus income when it comes to saving, Mr Simba notes that there is need for people to understand the importance of saving for their tomorrow. That can only be achieved through education and awareness creation. In this regard, Octagon has been at the forefront and has trained close to 70,000 members since 2010 through the Institute of Pension Management. Mr Simba is optimistic that with the launch of MOBIKEZA, the company is able to cast its nets wider in a bid to close in on the pension coverage.
www.destinafrica.co.ke
Destin Africa 30 Cloud Computing
By Flora Kangethe
Customer Service to Backend: How Cloud-Based AI Enables Modernisation of Business
A
rtificial Intelligence (AI) is proving to be a key technology in delivering improved customer experience and exceeding customer expectations. It is also a highly effective way for countries to achieve their economic growth and sustainability objectives.
In Kenya, emerging digital technologies are considered a significant part of national development plans, and have enjoyed significant support from the country’s leaders. This has led to the introduction of a host of development initiatives that leverage the potential of the latest cloud technologies that are powered by machine learning.
Possibly the most notable early adopter of AI in Kenya is the Kenyan government itself, which is also one of the top performers in Africa as per the Government Artificial Intelligence Readiness Index 2019. According to the report, it’s estimated that AI will add US$15 trillion to the global economy by 2030. However, the report findings also reveal that governments in the Global North are still better positioned to reap the benefits of AI than their southern counterparts. This poses a risk to countries in the Global South as they may not be fully prepared to succeed in the Fourth Industrial Revolution. As noted in the Readiness Index 2019 report, “AI has the power to transform the way governments around the world deliver public services. In turn, this could greatly improve citizens’ experiences of government. Governments are already implementing AI in their operations and service delivery, to improve efficiency, save www.destinafrica.co.ke
31 Destin Africa Cloud Computing
time and money, and deliver better quality public services.”
As one example of their efforts to improve the local socio-economic direction of the country, the Kenyan government has committed to using AI to help assess citizens’ eligibility for affordable housing. The AI technology will assist in allocating 500,000 new affordable homes by checking applicants’ credit histories and smartphone wallet transaction history sourced through the Credit Reference Bureau (CRB). The government is also making use of AI technology to verify and authenticate voters during election campaigns. Biometric technology was used by the Kenya Integrated Elections Management System (KIEMS) to ensure that votes
were cast only after fingerprint and photo authentication.
Oracle is the first organisation to take AI even further by embedding this technology in its cloud applications. By leveraging AI organisations can unlock significant value not only for their customers but for themselves in the form of greater operational efficiencies and cost savings. AI in customer service A best practise AI use case is in customer service. When used in this area of the business, chatbots can reduce the cost to serve customers, while improving the response time, consistency and quality of customer interactions. Similar benefits arise when the chatbot is customer-facing or when used by agents themselves to augment their knowledge.
Oracle recently announced the extended and evolved availability of its AI-trained Oracle Digital Assistant. Now users can use voice commands to communicate with their Oracle enterprise applications to drive desired actions and outcomes. The technology enriches the user experience with conversational AI, simplifying interactions and improving productivity.
This feature has already been of exceptional importance to the international organisation, Industries for the Blind and Visually Impaired (IBVI), who employ blind people for a wide range of jobs – from assembly to various customer service and office roles. Switching to Oracle Cloud Applications, the organisation aims to improve product quality and accuracy around factors such as shipment status and inventory. Since implementing the new Oracle Cloud Applications with Oracle Digital Assistant, IBVI has been able to create new independent roles (no sighted assistance required, where one sighted person for every four blind employees was required previously) in customer service, human resources, and financial management. It’s not just about chatbots: Automation across both sales and marketing processes can improve quote-to-cash turnaround times and reduce administrative workloads while allowing for a level of personalised messaging to customers that were previously unachievable. As
these examples attest, AI-embedded cloud systems have the power to deliver value whether as the mechanism for customer interaction (as in the case of chatbots) or in support of those responsible for it. AI in HR For Kenya – the highest-ranked African nation on the Government Artificial Intelligence Readiness Index 2019 – to stay ahead of the AI curb, the focus needs to be shifted to the adoption of cloudbased business systems that embed the technology in the application itself, unlocking automation capabilities by default.
HR is one such example, where the use of AI to understand and automate processes, can lead to significant efficiency gains. It can be used to identify staff who may be thinking about leaving or to recommend learning paths, thereby reducing employee attrition.
In the world of procurement, the use of AI within Enterprise Resource Planning (ERP) systems can identify deviations from compliance requirements in contracting, enforce approval processes, and automate requisition through invoice matching and payment. The automation of these processes allows organisations to reliably produce outcomes while enabling their employees to focus on tasks that deliver more strategic value to the organisation.
Much has been made of the abilities of AI to bring significant value to the customer – and rightly so. AI can produce repeatable, scalable, and reliable outcomes for customers, improving their overall experience. However, AI can also deliver enormous efficiency through various lines of business and across roles, creating a more streamlined organisation that is more able to focus on creating client value. To help connect more Kenyan companies to such benefits, on 1 November, Oracle is hosting Oracle Modern Cloud Day in Nairobi. This event is an opportunity for attendees to immerse themselves in cloud and gain insights into how cloud’s greater integration with AI in Cloud Generation 2 will further revolutionise business operations and the customer experience. By Flora Kangethe, Applications Sales Director, Oracle Kenya
www.destinafrica.co.ke
Destin Africa 32 Cloud Technology
By David Bunei
I
Next-Generation Cloud Eliminates Pain Points for Kenyan Business
n addition to experiencing our new brand look in person, business leaders who attended the recent Oracle Modern Cloud Day in Nairobi had the opportunity to experience the full potential unlocked by cloud-embedded technology. On a greater societal level, cloud technologies are at the heart of concepts like smart or green cities where available resources are optimized and systems integrated for the benefit of all citizens. Businesses too can achieve unprecedented all-round efficiency enabled by cloud services. The recent Cloud Day event in Kenya was an opportunity for us to showcase Oracle’s latest innovation across cloud applications and cloud infrastructure.
With a 30-year presence in, and commitment to, Africa, Oracle is bringing these, Artificial Intelligence (AI) and Machine Learning (ML) enriched innovations to Kenya as part of their global rollout. Companies that have already invested in previous generations of the technology will automatically receive the upgrades through patches. For all Kenyan organisations, though – whether already Oracle customers or not – Oracle’s Generation 2 Cloud infrastructure and the new features that use it as their foundation, will help prepare an agile, secure and cost effective infrastructure that will allow the business to consistently innovate and grow in the digital economy. www.destinafrica.co.ke
33 Destin Africa Cloud Technology
Cloud can help reduce costs One of the key challenges facing Kenyan businesses is the cost of doing business.
Although cloud adoption is considered an IT strategy to reduce expenses, it has overarching repercussions for any business, especially in the digital age. A shift to cloud liberates companies from tech refresh cycles and CAPEX investment to support their on-premise systems. Whether transitioning critical or nonessential applications to the cloud, Oracle
customers pay only for resources that are consumed.
More importantly, cloud-based systems are especially beneficial for companies operating in, or expanding beyond, Kenyan borders. In the case of Oracle, customers enjoy consistent pricing in all regions, so cross-border expansion does not lead to any cost increases. This way, customers can access world-class cloud services and their own fully integrated enterprise management systems no matter where their market aspirations take them. The
expansion of the Oracle Universal Cloud Credits system announced at OpenWorld 2019, also enables businesses to further optimise their operational expenditure. Organisations are often hesitant to shift to cloud given their use of business systems and technologies from various providers. Apart from the complication of wholesale data transfer, there is the cost associated with such an undertaking. Strategic partnerships are becoming more common as cloud enters its next stage, helping to streamline the process. Having already announced a cloud interoperability partnership with Microsoft in June, three months later, Oracle OpenWorld revealed a partnership with VMware, where customers can now more easily move and run VMware environments on Oracle Cloud. Creating data-driven customer centricity As elsewhere, data security remains a key concern for Kenyan businesses, along with the use of data to enhance the customer experience. Embedded in next-generation cloud services, automation, AI and ML can be leveraged to mine insights that will improve time to market and provide greater predictability in delivering the right customer services at the right time. Already, Oracle has partnered with the Kenya Revenue Authority to provide a more responsive and relevant service to their customers, translating into better brand reputation.
One final point to make is that cloud migration is an ongoing journey, for our customers and Oracle itself. One of the major announcements at OpenWorld was Oracle’s plans to build a cloud region in South Africa. New Oracle Cloud regions are continually being launched – one every 23 days over the next 15 months or so – and our relationship with Microsoft opens the door to interconnecting with Azure data centres in more areas too. Change takes time. While Oracle and other global players increase their investment in Africa, business decision-makers – who have expressed their enthusiasm about cloud’s potential – should seize every refresh opportunity at their organisation to explore what cloud solutions can do to introduce immediate business value.
David Bunei is the Managing Director at Oracle Kenya and Cloud Sales Director. www.destinafrica.co.ke
Destin Africa 34 Personalization
Hasnain Noorani
I
When it Comes to Guest Personalization, Price is Only One Piece of The Puzzle
f there’s one lesson that hoteliers can take is that personalization truly pays off – both figuratively and in a more tangible, financial way.
Hospitality is now more diverse than ever, due to a large offering in terms of accommodation, outside catering services and, more recently, even pricing. Personalization methods have evolved over the years, and it seems that we are now approaching a new type: the one of hotel pricing.
A number of hotels, are currently testing an algorithmic pricing system based on customer profiles, history, spending habits and even social media following and habits. PrideInn Hotels for instant are quick to acknowledge that not all guests are equal, and their profiles can differ significantly, meaning that a “one-size-fits-them-all” approach might prove to be ineffective. It’s true that we are already used to personalized experiences and services, and clients are increasingly expecting perks and promotions based on their personal profiles. However, this does raise a few questions: Should personalization be extended to pricing? And how would this innovative approach affect rate parity? Also, is it ethical to use a guest’s social media following as an incentive to promote a hotel, in exchange for lower rates? From a personal point of view, I would associate the act of establishing pricing based on past spending with the guests’ www.destinafrica.co.ke
35 Destin Africa Personalization
loyalty, which is not a new concept, but one that is known to draw quite a few benefits, both for hotels and for travelers.
The large majority of loyalty programs (if not all of them) are based on rewarding recurring guests with points or perks. This new approach focuses on rewarding customers with hard dollars, which enables more freedom in regard to their spending. This could prove to be a beneficial strategy in the long run, since guests get the feeling of actually saving money when booking this hotel and purchasing its services,
At the end of the day, it’s important to always remember that any new strategy, whether it’s service or pricing related, is ultimately directed towards the guests
instead of only receiving extra perks that might sometimes go unused.
On another note, when discussing the importance of price parity, it’s important to keep in mind that price is only one of the key factors in a booking decision. Experience has shown that travelers are willing to spend more on a hotel with better reviews. I would however ,personally not advise on adopting the influencer approach of rewarding influencers with discounted rates in order to access their followers and influence the booking decision of future travelers through the influencer’s positive feedback, I would suggest taking a more organic path towards the same outcome. Investing extra finances in improving the actual accommodation and services leads to better guest reviews and overall feedback. This comes naturally, a quality product will receive more positive reviews from a larger number of travelers instead of just a few influencers who were financially motivated to express a certain opinion. The very concept of social proof shows that consumers are more likely to relate to people similar to themselves, so organic feedback might prove to have a higher impact on a traveler’s booking decision. At the end of the day, it’s important to always remember that any new strategy, whether it’s service or pricing related, is ultimately directed towards the guests. Keeping their needs and feedback in mind is crucial in order to determine the best and most efficient action plans. The writer is the Managing Director of PrideInn Group of Hotels
www.destinafrica.co.ke
Destin Africa 36 Customer Experience
By Maxim Nartov
‘Best of Suite’ Approach Key to Personalized Digital Customer Experience
A
s regional mobile subscribers increasingly come to expect near real-time, personalised products, services and customer support, telecom operators will require a transformative digital Business Support System (BSS) that enables them to control the full breadth of their operations. Using a ‘best of suite’ approach will allow them to quickly, successfully and cost-effectively meet these demands. “Previously, BSS was perceived as just billing software, but today there is a demand from CSPs for us to provide an end-to-end system that allows them to realise the expected benefits from day one – faster time to market for new products and managing customer experience in a holistic manner,” says Maxim Nartov, Customer Solutions Director at Nexign.
According to Nartov, there has been a steady shift in the industry around what a BSS is and should do. The trend was to have ‘best of breed’ solutions by using different vendors for different functions such as customer relationship management (CRM), product management, ordering, and maybe even multiple billing solutions for the different lines of business – corporate, mobile and fixed-line residential, for example. “While these may give the company many capabilities, the complexities become www.destinafrica.co.ke
37 Destin Africa Customer Experience
apparent when it comes to convergence – if we try to sell a single package to someone who is a mobile and fixed line user, we need to ensure that the service is accurately provisioned, and that the customer gets a consolidated bill. This needs complex integration during the delivery project or afterwards, and affects the way in which you introduce new products, as you have to make changes to downstream systems,” explains Nartov.
By shifting from primarily legacy environments to a ‘best of suite’ approach with built-it convergence, all the components are provided pre-integrated
Customers are increasingly interacting with their service providers over digital channels, and intelligent chatbots can help analyse and respond to queries, and escalate the matter to a human consultant only where required from a single vendor, African telecom operators can reduce IT complexities and operating costs of their business systems. A digital BSS enables control of everything from billing to campaign management, CRM and analytical tools.
More than minutes and megabytes “Historically, operators were just in the business of selling minutes and megabytes; what customers expect today is not only traditional services, but final experience, like video streaming, online gaming and entertainment, and access to a multitude of other services – all personalised to suit their requirements. To do this, operators need to transform into digital service providers, or your customer will get it somewhere else reducing their relationship with you,” says Nartov.
By absorbing previously stand-alone functions such as campaign management, experience management and market segmentation into the BSS, operators can now get a holistic view of the customer, and use big data and advanced analytics to get a better understanding of their behaviour and preferences. In addition, these developments enable an operator to more actively use artificial intelligence (AI) and machine learning (ML) to improve CRM by moving away from a traditional call centre and towards using an opti-channel approach. “Customers are increasingly interacting with their service providers over digital
channels, and intelligent chatbots can help analyse and respond to queries, and escalate the matter to a human consultant only where required,” says Nartov. The partner ecosystem is vital We have seen that operators can’t just sell connectivity anymore, and this is quite apparent in some parts of Africa, where access to education, banking and other financial services has been improved in conjunction with increased access to mobile services. The launch of new mobile services like mobile money or mobile healthcare require in most cases an integration with external partners being part of the service offering (finance or healthcare institutions, libraries or education facilities).
A digital BSS with a robust partner relationship solution will give operators the ability to identify potential partners and their products, integrate these new offerings into their systems, package them together with the basic connectivity service that they sell, and share revenue with the partners. Moving into the cloud The other major shift for network operators is steadily moving their operations to the cloud, though this can become complex as the conversation moves beyond just being about technology, and into data and privacy regulation. This is especially the case for many African markets that lack the presence of cloud data centres. Nartov adds that Nexign has been moving away from a more traditional stack toward being cloud-native, and is able to address issues around data sovereignty and residency by having products that can be deployed on-premise, in a private cloud, or in the public cloud. “We have been able to offer an end-to-end products from day one, with the suite being fully built by the company. We are optimistic about the future and see a lot of opportunities. It is about opening up, getting more digital, and flexible, and this is where we are looking to help our customers in their transformation,” concludes Nartov.
www.destinafrica.co.ke
Destin Africa 38 Management
Retaining Talent: A Key to a Healthy and Successful Organization
T
he benefit of retaining top talent in organizations is an issue that every effective manager should be concerned with. In most cases, organizations experience high turnover rates resulting in additional expenses for hiring new employees. The productivity and growth of such organizations are also affected profoundly. The question here is why have some organizations become more favorable to work at while others are not? Why do employees leave a certain organization for another? By understanding this, managers can be able to turn their organizations to be among the best places of work.
A critical concern faced by organizations in the current time is how to retain their staff. Retaining talent is deemed significant especially in the present knowledge economy. While most executives are aware that retaining talent is a key priority, a number of organizations are still struggling with the issue. It is important for management to know the most effective ways of retaining talent as by doing so they are able to create healthy and successful organizations. The most effective way is creating an environment in which talented staff can develop. Talented individuals look for opportunities to grow and improve their skills; therefore they will seek for organizations offering abundant opportunities to do so. Organizations which develop their staff more rapidly experience low turnover rates as employees have a low likelihood of leaving. Besides, organizations which are
www.destinafrica.co.ke
serious about developing and retaining high-quality talent perceive themselves as growth platforms whereby individuals can develop themselves more rapidly. This, in turn, generates a self-reinforcing cycle considering that talent produces more growth opportunities.
Research has indicated that retaining talent is linked with various benefits including consistent sales growth, high customer satisfaction rates, positive morale, as well as institutional knowledge. In fact, talent retention is a key analytical gauge of the general health of the organization. It is worth noting that better benefits, higher salaries or bonuses are not the major factors which make employees leave their jobs. The majority leave in search for
a better manager or a conducive working environment. With regard to this, creating a better and positive work environment, seeking employee opinion, and developing management skills for the managers are amongst the major factors to retaining the top talent in organizations. In short, understanding staff who have many gifts could save companies unnecessary loss of talents. Why Employees Leave Most of the research that has been carried out on talent retention has focused on understanding the various reasons why employees make decisions to leave organizations. Having a clear understanding of why people leave is important as organizations are able to obtain a better idea of why people stay
39 Destin Africa Management
thus, can discover ways of influencing such decisions. Some of the most essential determinants for staying or leaving an organization include:
Work-life balance The relationship between employee and his or her manager Degree of cooperation with coworkers Amount of meaningful work being offered Level of trust in the place of work Opportunities for growth Ways of Retaining Talent Show Great Leadership It is true to say that people do not leave organizations, but they leave their managers or supervisors. Most people may stay at a job that is not convenient enough or has low pay if they have a manager or a supervisor who motivates them and leads the way. Organizations with a culture of strong leadership and management are termed as the most excellent and fantastic to work at.
Offer Opportunities to Learn Management teams in many organizations consider structured education as the only way of helping talented employees grow. While it is effective, managers should consider other memorable and effective ways. For instance, team building activities not only help employees grow but they also extend their world of exposure. Providing a memorable experience turns out to be more exciting, motivating and promising as compared to other rewards.
Know the Rates Salary is considered as one of the motivators of good performance. However, as compared to other factors such as favorable working environment, employee engagement, and good management among others, it ranks low. Some organizations pay their employees high salaries but poor working environment make them to leave. Nevertheless, too low salary packages are not only a poor motivator of working performance, but they may make employees to look elsewhere where salaries are fairly better. Although employers do not need to offer excessive salary packages, they should not be at the lowest end of the scale unless they are
When you create a culture where people are recognized, engaged and they believe in what they are doing, they not only stay with the organization but attract others there as well offering rewarding career pathways.
Understand and Embrace Real Diversity Real diversity entails embracing individuals who both look different and think differently. Most organizations search for people with corporate or industry experience. While this is so, the fit to be considered is whether an individual believes in organizational values. Build Career Entrepreneurship Providing career entrepreneurship means moving from a loyalty to a commitment mindset. While individuals are rewarded for merely being there for long hours in a loyalty mindset, a commitment mindset involves defining what people are being offered in return for their services and offering internal career training. It empowers them to be better managers of their own careers. The question of how organizations can build career entrepreneurship is very significant. There are various ways to do so. These include allowing individuals to set their own career goals, offering them with appropriate instruments to reach such goals, and allowing them to gauge their achievements. Assisting individuals set their own roadmap makes certain that they are engaged.
Role of Managers and Supervisors Leaving a job is a difficult decision made by
employees. In most cases, it is contributed by dissatisfaction with the managers rather than dissatisfaction with the organization. The leadership capability and management styles of the supervisory staff play a vital responsibility in retaining top talent. For many employees, working experience is shaped by their direct relationship with management. The presence of appropriate communicative and supportive relationships between employees and their managers has been reported to result to high job satisfaction, thus high retention rates. However, pleasant relationships are not always a guarantee to retain employees. Some of the factors that supervisors and managers should consider in order to actively retain top talents include:
Setting clear and achievable expectations for every employee Communicating frequently with all employees Identifying the distinctive attributes of every employee- it includes strengths and weaknesses- and acting accordingly. Seeking employee ideas and input Providing regular performance feedback While it is valuable for managers to possess expertise in a certain operational area, effective managers should also have strong leadership skills. These enable them to motivate, encourage, coach and mentor their employees. Organizations that have a commitment to attracting and retaining talented employees recognize that constant leadership training for management is paramount. In a nutshell, talented employees are the basis of any healthy and successful organization. Establishing the right environment, developing leadership skills amongst management team members, as well as gathering feedback from employees are the keys to retaining the existing talent in your organization. When you create a culture where people are recognized, engaged and they believe in what they are doing, they not only stay with the organization but attract others there as well.
www.destinafrica.co.ke
Destin Africa 40 Health & Fitness
Dr. Rose Kamenwa
Caesarian Section Delivery Increases the Risk of Allergies in Young Children
D
elivery by caesarian section seems to be the new trend and fashionable delivery method as most first and second time mothers prefer it as a less painful option compared to natural birth. However, C-section births raise the risk for allergies to infants because the delivery process eliminates the friendly protective bacteria from getting into contact with the baby during birth. This is a factor which should be taken into consideration because protective bacteria contained in the birth canal play a key role in stimulating appropriate immune responses and suppressing unfriendly bacteria in the baby. The global prevalence of allergic diseases is skyrocketing, affecting between 30 to 40 percent the world’s population. The prevalence of cesarean section deliveries mirror a similar trend with mounting evidence suggesting that cesarean section birth may be a risk factor for childhood allergic diseases. Allergic conditions include food allergies, anaphylaxis, asthma, eczema and other skin diseases, allergic rhinitis, allergic conjunctivitis and reactions to drugs and insects. Often, these burdensome conditions start early in life with the highest incidence in children below two years of life.
Allergic diseases usually overlap and have the potential to be severe, or fatal. Cesarean section babies have different microorganisms in the digestive tract, www.destinafrica.co.ke
41 Destin Africa Health & Fitness
which have been identified to prolong immaturity of the immune system and thereby increase the risk for the development of allergic diseases. Beneficial gut flora, or microorganisms are acquired from the maternal vaginal tract and thus are more likely to be transferred to the baby during vaginal births than during Caesarean sections.
The relationship between allergic diseases and mode of delivery has been actively investigated as the proportion of cesarean sections has increased. Researchers in Norway reported that children delivered by C-section have a 52 percent increased risk
of asthma compared with those of vaginal delivery’s 19 percent risk.
The World Health Organization (WHO) recommends cesarean delivery as an indicated choice of delivery in less than 15 percent of births. However, many countries have a much higher prevalence, due to less strict medical indication for the procedure. WHO further states that “There is no justification for any region to have caesarean section rates higher than 10-15 per cent”, since increased rates of C-section do not give additional health benefits but may increase maternal risks, have complications for both mother and infant
as well as future pregnancies and put more strain on the available health resources.
However, many expectant mothers are now opting and requesting for elective C-section delivery even without medical reason. In Kenya, the increase in elective cesarean births mirrors a trend in the West, and is happening despite warnings from medical experts who say it should remain a last resort. Until recently, caesarean section rates were at a maximum of 25 per cent in public referral hospitals, but these rates have increased by more than 100 per cent and now stand at 50-60 per cent and are even higher in some private facilities. In 2018, official records showed that C-section accounted for 58.2 per cent of National Hospital Insurance Fund’s maternity costs as a third of the women covered by the fund opted for C-section delivery.
Doctors who have undergone extensive training to understand allergies particularly their association with gastrointestinal problems, can create awareness of risk factors for allergic diseases and helping mothers differentiate symptoms of allergic diseases from those of other conditions. Most distraught mothers visit the children’s unit with babies suffering from various digestive system problems including colic, vomiting, constipation, diarrhea, poor weight gain, food refusal and food intolerance in the infant. All these problems can emanate from food allergies whose diagnosis involves detailed history-taking followed by individualized food allergy tests. We currently have no cure for food allergies, eczema, or asthma and our evolving understanding of the factors involved in the development of these conditions may help in prevention strategies. While C-section remains a life-saving procedure for the mother and the baby where the reason is clear, every mother contemplating to undergo the procedure should be fully aware of the risks. It is therefore important to educate women in their reproductive ages together with their families about the link between C-section and allergies, and the importance of avoiding unnecessary cesarean section. Dr Rose Kamenwa, Consultant Paediatric Gastroenterologist at Aga Khan University Hospital
www.destinafrica.co.ke
Destin Africa 42
GREAT DRIVE
Motor
2020 BMW 2 Series Gran Coupe www.destinafrica.co.ke
43 Destin Africa
T
he 2020 BMW 2 Series Gran Coupe, despite the name, is a four-door sedan that will compete against other entry-level luxury sedans from Germany. When it goes on sale in March 2020, there will be two models available that are primarily distinguished by engines. The 2020 BMW 228i xDrive features a turbocharged 2.0-liter four-cylinder that produces 228 horsepower and 258 lb-ft of torque. As BMW’s xDrive moniker indicates, all-wheel drive is standard here. Also standard is an eight-speed automatic transmission. The M235i xDrive has a more powerful version of that engine (301 hp and 332 lb-ft of torque) plus some additional performance upgrades.
In regard to size, the Gran Coupe is 6.8 inches longer than the two-door 2 Series and 4.2 inches shorter than the 3 Series. As we’ve come to expect from BMW Gran Coupe models, the 2 Series Gran Coupe has an unmistakable fastback-like sloping rear roofline. Standard features, even on the base 228i, are impressive. BMW includes modern safety tech items such as lane departure warning, adaptive cruise control, forward collision warning and mitigation, blindspot monitoring, and pedestrian detection with automatic braking. The M235i will get a bit more in the sporty-equipment department, including upgraded brakes, an M Sport steering wheel and added aerodynamic bodywork. The M235i also receives a unique differential, additional subframe and strut bracing, and a sport suspension that rides 10 mm lower.
www.destinafrica.co.ke
Destin Africa 44
TRAVELWISE
Coronavirus Casts Shadow over Hospitality Industry By Hasnain Noorani
T
he spread of infectious Coronavirus is invariably linked to travel and hospitality. Today, hospitality is a huge global business that accounts for 10.4 per cent of global Gross Domestic Product (GDP) and 10 per cent of global employment.
As global health officials rush to get ahead of the virus, business leaders are preparing contingency plans. Hospitality and travel operators have been particularly hit hard in the areas where the virus has taken hold. Hotels, and restaurants assets are bearing the brunt of the impact, but other asset classes are suffering tertiary effects. This outbreak has already disrupted economies across Asia, Europe and even African market, and it is likely going to bite out the earnings of the travel and hospitality industry players. We’re seeing business slow down unlike other seasons, international conferences and events being cancelled and that has a bigger impact on premium traffic which is a critical source of revenue for many network airlines, local and global hotel chains.
The impact of the coronavirus is shifting daily, as the number of confirmed cases and deaths continues to rise and governments and companies around the globe take steps to address the epidemic. As an impact, it is affecting travel brands across every sector from hospitality, to air travel, to cruise, to tour operators. The latest news was from Saudi Arabia saying Saudi Arabia temporarily suspended entry for individuals seeking to perform Umrah pilgrimage in Mecca or visiting the Prophet’s Mosque in Madina, as well as tourists traveling from countries where the coronavirus poses a risk as determined by the Kingdom’s health authorities. www.destinafrica.co.ke
While the ultimate outcome is unknown, it is clear the economic impact will be significant as China’s travel market to Africa and Kenya in particular is one of the fastest-growing, so the losses are expected to be much bigger than those from the 2003 SARS outbreak, moreover, the spread of the illness, and the fear that has come with it, has caused companies doing business in China to close offices and factories, and restrict travel to and from the country. Airlines and cruise ships have canceled flights and tours in the country. Amid a flurry of deep cleaning at their headquarters, hundreds of businesses, including multinationals such as British Petroleum, BMW, Orange and Estée Lauder, have suspended travel to countries with outbreaks of the virus and imposed quarantines on any returning from those regions. Others such as Nestlé, which has 352,000 employees, and L’Oréal, which has 86,000 employees, have gone further cancelling all international travel for at least a month. In 2018 alone, the Chinese spent USD 277 billion in international tourism, and in 2019, China predicted around 166 million outbound travelers. Therefore, when the Chinese are not traveling or restricted to travel, just assume during the first quarter of 2020, that means a loss of USD69 billion and might be increased more than we can imagine, hence the global tourism industry will suffer. As far as global tourism, the industry is concerned, when the Chinese do not travel.
Hotels worldwide are already feeling the pinch. The Mobile World Congress held in Barcelona each year since 2006, had been scheduled for Feb. 24-27 but was canceled earlier last week after several big-name vendors withdrew over coronavirus concerns. As a result, bookings in Barcelona hotels dropped an estimated 25 percent. ITB Berlin 2020 where Kenya was to exhibit has been cancelled due to the rapid spread of the virus. It is estimated that the global airline industry would lose USD30 billion due to the coronavirus outbreak; Comparing to what happened during the SARS outbreak in 2003, the airline industry lost USD6 billion.
Destin Africa
Partners in better health Aetna International and Executive Healthcare Solutions (EHS) bring together local expertise and global strength to deliver health plans perfectly positioned to meet the needs of the Africa market. Members can choose to be covered in Africa plus the Indian sub-continent; Worldwide excluding USA or Worldwide. They can also choose from a range of plan options all aimed at keeping them healthy and well-protected.
Learn more about our global health solutions for groups and individuals
Executive Healthcare Solutions
E: info@executive-healthcare.com W: www.executive-healthcare.com T: +254 20 291 0000 www.destinafrica.co.ke
Destin Africa
www.destinafrica.co.ke
