Kshs. 300 / Ushs. 9000 Tshs. 6000 / RWF. 2200 ISSUE 20 / 2018
INSIDE GLORIA MICHELLE PASSIONATE ABOUT HUMAN RESOURCES AND SKILLS DEVELOPMENT VAELL, THE REGIONAL GIANT IN LEASING SOLUTIONS THE FUTURE OUTLOOK FOR HOSPITALITY IN KENYA
NABO CAPITAL TAKES THE INDUSTRY BY STORM
PIUS MUCHIRI, MD, NABO CAPITAL . www.destinafrica.co.ke
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Editor’s note
Is Kenya Biting More Than It Can Chew?
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reasury Cabinet Secretary Henry Rotich presented a whopping Ksh3.074 trillion budget for the fiscal year 2018/19. Out of this, the national government gets the lion’s share of Ksh. 1.6 trillion, consolidated fund service Ksh. 962 billion, while county allocation stands at Ksh. 372 billion. Over half of the national government’s allocation will go towards financing the recurrent expenditure (61.01%), while development will take 38.99%. This year’s budget is an increase by about 10.83 percent from the 2017/18 financial year which was Ksh2.77 Trillion. It is also the highest budget in Kenya’s history, and comes at a time when the public debt load hits Ksh. 5 trillion, and the cost of living is too high. What does it mean for Kenyans? What about revenue allocation? How does the CS plan to finance the budget? These are some of the questions that Kenyans need to ask themselves. There is no doubt that the CS is limited in terms of options to finance the budget considering that all revenue accounted for the budget still has a Ksh.562 billion deficit, meaning that it will require more borrowing to fund. According to Mr. Rotich however, the budget focuses on the Big 4 development agenda, whose key priority areas will be funded while keeping the already high debt sustainable. This is expected to propel growth to seven per cent in the next fiscal year.
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Contents 20.
INSPIRING WOMAN
5. EDITOR’S NOTE 10. GET INSPIRED 12. CORPORATE NEWS
24.
Safaricom Foundation USIU-Africa CBA Partners With AGF And ECAP 16. TECHNOLOGY Doctor 4 Africa Azure ExpressRoute
18. FUND MANAGEMENT Nabo Capital Takes The Industry By Storm
20. INSPIRING WOMAN Wandia Gichuru Gloria Michelle Muka
26. MAIN STORY Vaell, The Regional Giant in Leasing Solutions
26. YOUNGPRENUER How Trushar Khetia Built a Successful Outdoor Advertising Company
29. Quipbank
26.
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Africa 8
Editor-in-Chief : SUSAN ARMSTRONG
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EDITORIAL Features Editor JENNIFER NYAWIRA Features Editor SHABAN AHAB Assistant Editor ALEX NYAMU Digital News Journalist JOE
DESIGN & PRODUCTION Art Direction & Design CAITLIN SHARON Graphic Designer FELIX CONTRIBUTORS Nazil Khamisa Kasim Ahmed Mwaba Joseph Christine Njoroge MARKETING & DIGITAL Head of Digital and Marketing JACKSON THUITA Digital Content Producer AMANDA Digital Coordinator KATE ISSAH FINANCE & OFFICE MANAGEMENT Accounts – accounts@destinafrica.co.ke Head of Sales & Media STEVE – steve@destinafrica.co.ke
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Contents 28.
30. ENERGY MANAGEMENT Farmers Choice Bags Best Most Improved Energy Management Awards OPINION
32. HOSPITALITY 34. MOBILE TECHNOLOGY 36. HUMAN RESOURCE 34. CORPORATE FITNESS
Philosophy Concerning Global Health Problems and Solutions
34.
40.
40. MOTOR 2018 Toyota Landcruiser Prado Revealed 44. TRAVELWISE RwandAir Receives a Nod to Fly to the United States
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Africa
Get Inspired provoking quotes by African entrepreneurs
“Businesses that are spoilt with too much capital make the wrong decisions… Constraints are the most wonderful things in business, because constraints allow you to be innovative and come up with different solutions.” ~ Michael Jordaan, South African businessman and founder of MonteGray Capital “Prepare for eventualities since things can change in a second. You need to have back-up plans just in case.” – Muthoni Ndonga, founder of the Blankets & Wine event in Nairobi “Teams are crucial because they combine the differing talents of different individuals, and they make the whole better than the part” ~ Nigerian tycoon Hakeem Belo-Osagie “Focus on making [your product or service] awesome. I see a lot of guys go into business with a ‘how can I make money’ approach. But if you go in there saying ‘how can I make something awesome’, the money will follow” – Alex Fourie, founder of iFix in South Africa
“Work hard and be patient. The main problem I see with young African guys is they want to grow overnight. Yes, they have to be ambitious, they have to think big, but they have to be patient. Rome was not built overnight” – Francis Kibhisa, founder and managing director of Rex Energy in Tanzania “It’s not an easy road. You will get people who will disappoint you… but you need to stay focused on your dream. We all learn and become better through our mistakes and challenges” – Malawian fashion designer, Lilly Alfonso “I don’t think there is ever a right time. A lot of times an entrepreneur has to make a decision and make a move. If you keep waiting for the right time, which means the safest time, you might wait forever.” – Carole Mandi, founder of Carole Mandi Media Limited in Kenya “I have come to learn to be patient and not to give up too quickly. It takes patience and persistence to bring a new and innovative product and ways of doing things to a community. There are early adopters who immediately embrace the product and there are traditionalists who resist the change that the initiative represents.” – Bernice Dapaah, co-founder of Ghana Bamboo Bikes Initiative in Ghana
“The future of Africa depends on its young people. It is critically important for young people to study hard and get a good education in order for them to undertake whatever they want to do and to succeed on their own initiative. Courage and persistence are key characteristics needed for entrepreneurs in Africa today. .”
– Togolese Gervais Djondo, co-founder of Ecobank and Asky Airlines
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Africa 12 Corporate News
15 years Over the last 15 years, the Safaricom Foundation has reached more than four million Kenyans across the country.
Safaricom Foundation Launches New Strategy to Bolster Health, Education and Economic Empowerment
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afaricom Foundation has launched its three year strategic roadmap, which commits to focus on health, education and economic empowerment.
In the new strategy, the Foundation will also continue to provide immediate financial support to relief agencies and local organisations that are first responders to emergencies and disasters. “Our mission is to build communities and demonstrably transform lives through impactful investments and partnerships that are aligned with the Sustainable Development Goals. We made significant achievements in our last strategy and we now have an even stronger desire to deliver greater impact over the next three years,” said Joseph Ogutu, Chairman – Safaricom Foundation.
Under health, the Foundation will focus on addressing maternal mortality as well as Non-Communicable Diseases, paying special attention to children with diabetes.
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For education, the Foundation will address literacy and numeracy as well Technical and Vocational Education and Training (TVET). Under economic empowerment, the Foundation will focus its efforts on empowering the youth through entrepreneurship opportunities.
“We will work with a wide range of partners to co-create strategic and shared value programmes and also engage in advocacy activities that relate to deepening the impact of our work and our partnerships,” said Mr. Ogutu. Over the last 15 years, the Safaricom Foundation has reached more than four million Kenyans across the country through programmess aimed at alleviating poverty, extending quality education to nomadic communities, increasing access to maternal health care and improving access to clean water.
The extensive reach has been attained through partnerships with more than 1,000 organisations.
USIU-Africa Partners with Kenyan Conglomerate to Launch Graduate Training Program
avoid the frustration of hit-and-miss innovation endeavors, because it makes innovation more predictable, leading to high-growth enterprises,” said Prof. Amos Njuguna, Dean of the School of Graduate Studies, Research and Extension. He noted that is the program is geared towards generating more jobs through market creation rather than market disruption which causes displacement.
“We aim to provide an environment that will lead to innovative ideas and solutions that will solve our own problems and those of the continent,” he added. Speaking at the launch of the program, The Vice Chancellor Prof. Paul Zeleza underscored the university’s desire to prepare graduates who are ready for the workplace they are headed, “This commitment is necessary to ensure that Kenya continues being the economic powerhouse in the region, as it has extensive human skills, ideas and capacity to generate relevant solutions,” he noted.
DEVKI Group Chairman Narendra Raval, EBS, speaks during the launch of the Narendra RavalGuru Entreprenuership and Social Innovation Program. Looking on is his wife Neeta (Second right), Vice Chancellor Prof. Paul Zeleza (Center), Dr. Sunil Dhall (Second left) and University Advancement Director Mr. James Ogolla (Left). PHOTO CREDIT: DAN MUCHAI
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SIU-Africa in partnership with Devki Steel Mills Limited, has launched the Narendra Raval – Guru Entrepreneurship and Social Innovation (ESI) Program, targeting recent graduates from both public and private universities in Kenya. This is a first of its kind Outcome-Driven Entrepreneurship (ODE) program to be offered in an institution of higher learning, which seeks to equip participants with a 21st century mindset, skills, frameworks, tools and processes, that will help them transition from entrepreneurial intentions and aspirations, to reality through a more predictable Evidence-Based Innovation Process and Strategy (EBIPS).
The six month program, which will be hosted and administered by the School of Graduate Studies, Research and Extension, is mainly designed to solve the problems of business failure, by enabling participants to incubate their great ideas and receive guidance on how to manage and overcome business challenges. Participants will be taken through a human-centered interactive systematic process to create their own businesses, through which they will be offered practical, hands-on insight and battletested solutions to the failures by startups. “The ESI program is based on a methodology which helps participants
On his part, Devki Group Chairman Narendra Raval spoke of this partnership as a step in the right direction, noting that their experience was informed by the continuous disruption they had observed in the marketplace. “We knew we needed to change the direction in which the industry was headed,” he added.
He also added that Devki will donate a considerable amount towards tuition fees for the first batch of 50 students once the program commences in July at the Incubation and Innovation Center. Upon completion, Devki Group will place successful graduates from the program in their subsidiary companies: Devki Energy Company Limited; Devki Steel Mills Limited; Maisha Mabati Mills Limited; Maisha Packaging Company Limited; National Cement Company Limited; and Northwood Aviation.
“Our partnership with USIU-Africa is based on the fact that we want to socially invest our funds and expertise with an institution that is widely recognized as a center of academic excellence with state-of-the-art teaching facilities.” www.destinafrica.co.ke
Africa 14 Corporate News
Commercial Bank of Africa (CBA) Chief Executive Officer, Jeremy Ngunze (L) and African Guarantee Fund for Small and Medium-Sized Enterprises (AGF) Chief Executive Officer, Felix Bikpo.
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CBA PARTNERS WITH AGF AND ECAP TO AVAIL FASTER PAYMENTS FOR CORPORATE SUPPLIERS
ommercial Bank of Africa (CBA) has partnered with the African Guarantee Fund for Small and Medium-Sized Enterprises (AGF) and Nairobi-based fintech firmECap, to introduce a solution that will see suppliers of Corporate Institutions, receiving payment for goods and services offered, without having to wait for the stipulated credit period.
The solution, known as Reverse Factoring or Supply Chain Financing, borrows from the traditional invoice discounting facility given by banks. However, unlike the traditional product, which was offered to suppliers, Reverse Factoring is extended to Corporate Customers as long as they have a good credit standing with CBA. Their suppliers are the eventual beneficiaries. CBA becomes the first Kenyan bank to offer the solution through an Open platform, which gives participating buyers access to liquidity. “This is yet another innovative solution that we are introducing for our Corporate Banking segment. We have leveraged technology and teamed up with the leading provider of financial guarantees across the continent, to address some of the
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key concerns affecting business today. In particular, this solution will spur growth among Small and Medium Enterprises (SME) by availing working capital faster to enable them finance new projects,” said Jeremy Ngunze, Chief Executive Officer, CBA Kenya.
The solution works by having corporate buyers approve and submit their supplier invoices to CBA through an online platform, and the bank in turn facilitates immediate payments to suppliers with recourse to the corporate buyers. This ensures that suppliers are able to access their payments before the due date. The business model has been quite successful in the United States of America, Europe, South Africa, and some countries in Asia. “The quick pace at which technology is advancing has provided a tool that innovative financial sector players will use to revolutionize this industry. CBA has set a pace that will support the growth of SMEs, many of whom do not have huge capital reserves to allow them take on all the new projects that come their way. Together with CBA, we intend to track and document the economic impact arising from this development,” said Felix Bikpo, Chief Executive Officer, AGF.
In addition to improving SME operations, Reverse Factoring also reduces the administrative burden placed on procurement and finance teams, who ordinarily have to deal with each of the individual suppliers on a regular basis. This responsibility has now been extended to CBA, which will manage all the payments on behalf of the corporate institutions. The solution has been developed by Ennovative Capital (ECap), a Nairobi based Fintech. According to Chief Executive Officer, Kefa Nyakundi, the solution provides a marketplace for SMEs supplying goods and services to credit worthy buyers to trade their approved invoices without the need for the SME suppliers to undergo credit assessment. This structured financing model allows participating SMEs to incur debt only when borrowing for expansion, rather than on routine working capital. Nyakundi noted, “This facility is also applicable to overseas suppliers therefore making it a perfect solution for Boosting Intra Africa Trade (BIAT) and therefore facilitating the aspirations in the Africa Continental Free Trade Area agreement signed earlier in the year in Rwanda.”
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Benefits of Operating Lease • 100% financing • Access to the latest equipment and technology without the associated cost of ownership. • Hedge against equipment obsolescence • Hassle-free delivery and start up of equipment • No worries about disposing of equipment • Preserve customer credit lines • Enhanced return on assets and return on equity ratios as operating lease is not reflected on the balance sheet
Products • Trucks and trailers • Commercial Vehicles • Generators • Agriculture equipment • Communication Equipment
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Africa 16 Technology
Doctor 4 Africa Redefines Africa’s Health Care Access at The Touch of a Button
The online platform offers easy access to medical care via a mobile app and web portal By Jennifer Nyawira
that more than 50 percent of the African population has limited or no access to necessary healthcare facilities. “It is therefore not easy for them to find a doctor, hospital, ambulance or blood donor in an emergency nearby their location.”
I
n the recent time, information technology (IT) is affecting every part of our daily lives. It has led to many mind-blowing discoveries, in addition to changing how we communicate, transact business, study and access healthcare. There is no doubt that technology is the driving force behind the huge improvements in healthcare across the world. In addition to the implementation of modern technology in hospitals, the development of telemedicine platforms has changed how people access treatment. Today, people can get medical care at the touch of a button. One such platform is Doctor 4 Africa, an online health care web portal and mHealth app for all medical requirements in the 54 countries of Africa. “We would like to deliver convenient, affordable and reliable health care through a simplified delivery network,” says George V, Founder, Doctor 4 Africa. The app enables clinical consultations and provides medical information to help individuals take better control of their health. George shares that the healthcare web portal was introduced on the realization www.destinafrica.co.ke
He also offers that death of children and disability is also on the rise since families are uninformed or misinformed about when and why to bring their children for immunization.
Furthermore, Africa currently has 24 percent of the world’s burden of disease. Doctor 4 Africa offers a range of services including ambulance, Blood Bank, Diaspora Packages, doctors’ internships and jobs, home care hospitals, medical insurance, labs, pharmacy and vaccination. How it works Health care providers are required to register on the portal with all the necessary information. All doctors and medical services providers are verified to ensure that only authentic doctors are
We believe our selection to the international fairs was contributed by the fact that there is an urgent necessity for healthcare in Africa and we are providing the necessary platform for the same
registered on the platform. On the other hand, individuals in need of any health care requirement in any of the African countries are required to log in to the website or the mHealth app and find the necessary health care provider. Doctor 4 Africa targets all people seeking health care. It is affordable since it is free for all users.
Awards and recognition “Doctor 4 Africa was one of the start-ups selected to pitch at the 2018 Seedstars Summit in Switzerland,” says George. Seedstars selects startups from across the world that impact people’s lives in emerging markets through technology and entrepreneurship.
It also participated in the Salamanca start-up fair in Spain that took place in April this year. Dubbed as Startup Olé, it is now a benchmark event for the European and international tech entrepreneurial ecosystem. The fair is supported by the European Commission, Startup Europe, University of Salamanca and Marca España. This tech event is now one of the most important in Spain and Europe, thanks to the presence of 10.000 attendees, 500 startups, 150+ corporations and institutions, 70 accelerators, 30+ media outlets, 20 universities and 80+ investors with an Investment portfolio of over € 10 K million. “We believe our selection to the international fairs was contributed by the fact that there is an urgent necessity for healthcare in Africa and we are providing the necessary platform for the same,” notes George.
In addition, Doctor 4 Africa has created strategic partnerships with health departments in African countries. “We have also brought investors on board, and we are currently developing health records using block chain technology”. There is no doubt that e-health platforms are transforming Kenya’s health sector. “They are very important not just for Kenya, but for all African countries since health is the most important priority for a healthy society and development of the country,” he concludes.
Microsoft, SEACOM Launch Azure ExpressRoute
cloud resources of Azure will be seamless, similar to working within your office local network,” said Tonny Tugee, SEACOM General Manager, East Africa region.
“ We have sufficient skilled experts with all the tools you will need to to scale your organization data convenient however big or small the size is, we will continuously keep working with Microsoft to make our cloud computing system much better,” said Tugge. “Because we can control the infrastructure from the last kilometre of the fibre to our many points of presence in the world’s largest Internet traffic exchange points, we can ensure our clients use Azure as naturally as if it was an extension of their own IT infrastructure,” he added
“This partnership is based on the strengths and capabilities of both parties to provide support not only to M-KOPA, but also to further customers. The move to the cloud and the increase in data management needs means that an offering like this could not come at a more perfect time. We are confident that Azure ExpressRoute will bring great benefits to our current and potential customers.” said Haileleul.
Tonny Tuggee SEACOM General Manager East North East Africa Region, Sebuh Haileleul, Microsoft East Africa Country Manager during the launch.
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icrosoft, in partnership with SEACOM, has launched a cloud service that will allow customers to extend their on-premises networks into the cloud without going over the public internet. The service, dubbed Azure ExpressRoute, enables customers to create private connections between datacenters and infrastructure on their premises or in a cloud environment. “We are excited about the added value that this will bring to our customers – particularly over a secured and reliable connection provided through SEACOM”, says Sebuh Haileleul, East Africa Country Manager at Microsoft. “We know that organisations are moving towards a space where they are dealing with a lot of data that requires secure movement. This
service addresses these issues by providing a private, secure and high bandwidth connection to the cloud.” The ExpressRoute partnership has previously found great success with M-KOPA – the world’s leading pay-as-yougo off-grid solar company, headquartered in Nairobi. With the help of Microsoft’s Azure cloud, M-KOPA is able to deploy its IT technologies in a seamless and reliable manner to bring power to over 600,000 homes across East Africa.
“Partnering with SEACOM made sense – especially where a guaranteed network experience for users going into the cloud was and is concerned,” says Haileleul. “SEACOM is giving a low latency connection with guaranteed throughput and uptime. Data movement between the user and the
“Microsoft is happy to see this come to reality, our target is to provide end to end proposition and chain experience in the most secure, reliable and cost effective way to our clients both in Kenya and Africa,” he added. Local organisations wanting to use Azure will have to connect to one or more of the company’s data centres in Europe or around the world since Azure, Microsoft’s cloud computing platform does not yet have Azure data centre in Africa.
Through these latest advancements, Microsoft continues to showcase rapid innovation on the Microsoft Azure cloud platform, while enabling choice and simplicity for a growing list of customers of all sizes and ensuring they are safe. Early this month, Microsoft corporation launched Africa’s first Software Testing Centre in Nairobi making it the fourth country in the world to host such a centre after China, Poland and India to host such a Centre.
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Africa 18 Fund Management
50 years I think what sets us apart is our rich heritage of over 50 years
PIUS MUCHIRI, MD, NABO CAPITAL .
NABO CAPITAL TAKES THE INDUSTRY by STORM The fund management firm bets on its rich experience, expertise and proven track record to create wealth for its clients
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he launch of Nabo Capital in 2013 was timely. According to the company’s Managing Director, Pius Muchiri, the idea to establish the firm was linked to the success of Centum’s QPE. “Many people came to Centum saying they liked our story, our track record, and the fact that
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By Jennifer Nyawira the company knows how to create wealth. They wanted to participate and imitate our track record without necessarily having to buy Centum shares.” Nabo is a wholly owned subsidiary of Centum Investment Company Limited. It was merely a department – the Quoted
Private Equity (QPE) Division within the group that spun off to become a fullyfledged entity with its own structures.
The company opened its doors to third party funds, who can now benefit from the expertise attained in the African markets over the years.
“Today, Nabo Capital’s assets under management stands at about $150 million and we plan to grow it further,” says Pius who notes that the firm manages some of the best and largest funds in the world, and draws clients from across the globe. Going down memory lane The leading fund manager has a rich history. It is a 3rd generation investment firm, dating back to 1954 when the Industrial and Commercial Development Corporation (ICDC) was formed to be the investment arm of the government. Then, investment activity was a preserve of only a few elite individuals and that triggered ICDC to form ICDC Investment in 1967 to become the investment vehicle for Kenyans access to different investment opportunities and boost economic growth. ICDC Investment was formed with a seed capital of USD 26,000. It was listed in the same year on the then Nairobi Stock Exchange. The investment firm was later rebranded to Centum.
Given that many African countries had just gotten independence and multinationals were coming to set up businesses in the continent, Centum was positioned as the preferred local partner as it was already established as the investment vehicle for Kenyans. Today, the company’s legacy portfolio is associated with multinationals such as General Motors and the CocaCola Company.
From 1967 to date, the firm has grown to become the largest private equity firm that is listed in East and Central Africa.
Unbundling the portfolio Pius reveals that Centum was worth Ksh. 6 billion in 2008 and the fund manager then embarked on a revolutionary strategy dubbed Centum 2.0 by looking at the available opportunities not only in Kenya, but across the continent. “We set very steep targets to grow the company five-fold to Ksh. 30 billion by 2014,” he observes. The portfolio was unbundled into three business lines- private equity, real estate and public markets now called the quoted private equity. The business lines were
In the last five years, we have been setting up the company for success. We have made a strong foundation, set up systems and processes and created a track record separated to generate unique track records that would be used to attract investors. Pius was tasked to grow the quoted private equity portfolio. The managing director points out that many companies trading in most African stock exchanges are regarded as illiquid and are under researched. As a result, very few investors are interested in them. “This is where we saw the opportunity and decided to use our private equity expertise in the public space,” he says.
“We bought our first company for Ksh. 418 million and after two years, sold it for Ksh.1.2 billion,” recalls Muchiri. That was proof of concept and within a few years, we had created a track record. With time, the division proved successful and the opportunities that were coming across were much bigger than could be accommodated at Centum. The need for a platform that could help to co-invest them with other investors was essential. Nabo Capital was therefore born. It received a license from the Capital Markets Authority (CMA) to manage third party funds. Target market Nabo targets institutions and high-net worth individuals. For institutions, the fund manager targets sovereign wealth funds, and today, it manages the largest fund in the world.
The company has diversified its products by offering access to investment opportunities across Sub-Saharan Africa. One such product is segregated accounts, which are tailored to suit client’s specific needs and ensure they meet their financial goals.
Another product offered by the company is unit trusts. Pius observes that it is probably the only unit trust that invests across the African region, specifically targeting highnet worth individuals. Competitive edge “I think what sets us apart is our rich heritage of over 50 years,” says Pius adding that “the heritage has given us experience, a brand and a reputation having worked with the best in the world over the years.” Pius notes that the company has a unique set of people who are on a transformative mission. “The Nabo DNA cascades from the Centum Group. The DNA is what determines the kind of individuals who are likely to succeed in Nabo and is really what sets us apart from the rest,” he reveals. Furthermore, Nabo has a distinctive private equity approach. The company is not satisfied with talk level alliances, but conducts detailed background checks on companies it invests in. The company also prides itself on its track record, which ranks among the best in Africa. “For every 1,000 dollars invested in 2009, we have grown it to an excess of 4,000 dollars,” reveals the managing director.
Most remarkably, Nabo does not view itself as a Kenyan fund manager, but as a pan African fund manager. It is among the few firms in the continent offering access to investment opportunities in any African market except South Africa. Road ahead “In the last five years, we have been setting up the company for success. We have made a strong foundation, set up systems and processes and created a track record,” observes Pius. Going forward, Nabo plans to scale up the business to make its brand more visible. “We also want to give our customers first class experience,” concludes Pius.
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Africa 20 Inspiring Woman
Wandia’s Love For Fitness And Dance Inspired Her to Start Vivo Activewear www.destinafrica.co.ke
Wandia Gichuru is one of the most successful women entrepreneurs in Kenya. She is the CEO and co-founder of Vivo Activewear, a retail clothing business that was founded in 2011. The company has since grown in leaps and bounds to become one of the leading ladies fashion brand in the country. Wandia, who is also a certified life coach and a mentor, talks to Destin Africa Magazine about her entrepreneurship journey and her desire to see Vivo products being worn by women not only in Africa, but also across the world. By Shaban Ahab
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Who is Wandia Gichuru? am a proud Kenyan woman - a mother, a daughter and a friend. Those are the things that are always constant and will never change. Other things are more fluid. Am also an entrepreneur, a coach and a mentor. How did you get started as an entrepreneur? I became an entrepreneur in my forties, so relatively late in life. I could say I am an accidental entrepreneur as it wasn’t something that I had always wanted to do, or that I necessarily thought I was suited for. I just knew that I wanted a change. I didn’t want to be employed any longer and I wanted more freedom and flexibility in my life. Tells us more about Vivo Activewear? Vivo is a made in Kenya ladies fashion brand that focuses on providing stylish clothing that is also comfortable, versatile and affordable.
What inspired you to start the company? I co-founded the company with my close friend Anne-Marie Burugu. We were both inspired by our love for fitness & dance, and for living and loving life to the fullest. Was that the line of business you wished to engage in while growing up? I was never really clear about what I wanted to do when I was growing up. I just knew that I wanted to do something fulfilling, which could provide opportunities for growth and for adding value. What sets you apart from other players in the market? I believe the fact that we design and manufacture locally sets us apart, as most ready-to-wear fashion is imported and was invariably designed with a different
customer in mind. We are able to produce something, test it with the market, get feedback and modify accordingly.
What can you say you have achieved so far? As a business, we have achieved significant growth which has led to the creation of jobs, shareholder value, and hopefully to customer value as well. As a person, I measure success in terms of how much I am able to contribute, how much I am growing and how much joy I am feeling along the way. The three are very closely linked. I don’t really measure achievement in monetary terms as I see money just as a means to achieve the other three (contribution, growth & joy). And in that regard, I see every day as an opportunity to achieve. Could you tell us some of the fundamentals of starting a business? Starting a business requires identifying a need that isn’t being met, and offering a way to meet it that works for your target market. The two have to go hand in hand. Many times people get one right and not the other. For example, you could offer a great product or service, but it’s not addressing an unmet need, so no one really wants it. Or you have identified a need, but the solution you are offering isn’t one that works for the people you are offering it to. It might be too expensive, or too complicated, or too boring. So understanding both the need and the customer that needs it is critical. Once that is clear then, the rest should be easier to figure out. Have you faced any challenges, and how did you overcome them? I think everyone faces challenges all the time - whether it’s in business or in life! But the nature of the challenges keeps changing - depending on what stage you are in. When we first started Vivo, the
challenge was simply understanding the first thing about business. How to set up accounts and hire staff. Now that we are growing, the challenges are more complex. They include how to run multiple distribution channels and manage working capital when you are scaling up quickly. I think the important thing is to break your challenges down into steps and tackle them one at a time. Very few problems are insurmountable if you do that. What gives you the most satisfaction being an entrepreneur? As an entrepreneur, am most satisfied when I see our employees and our customers satisfied, when we come together as a team and work towards our targets and goals, when our clients are happy with our products & services, and when we can truly see that value we are adding to their lives. That is what makes me contented.
What are your future plans and aspirations for your company? Our plan is for Vivo to be 100% Made in Africa, for the World! We want to source the material and do the production on the continent, but see Vivo products being worn by women not only across Africa, but also internationally.
What’s the biggest piece of advice you can give to other women looking to startup? Don’t let the fact that you are a women discourage you in any way. We are just as capable of building amazing brands and amazing businesses, and the world is keen to help us. There are countless opportunities now for women entrepreneurs to get support - take advantage of them. Often our biggest obstacles are in our heads. Look for opportunities to invest in yourself, to grow your understanding and your ambitions. Surround yourself with people who believe in you and inspire you. www.destinafrica.co.ke
Africa 22 Inspiring Woman
Gloria Michelle is Passionate About Human Resources and Skills Development www.destinafrica.co.ke
Her desire to be part of social change and make a difference in the human sector as a whole inspired her to establish Recours Four Kenya Consultants Limited Gloria Michelle Muka is a highly motivated, all round and proven leader with a meticulous quality who can drive forward a business development and human resource consultancy function within any organization to realize its full human capital capability. She is also an “inspirer” seeking to get the best out of people and helping them succeed with their careers.
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loria is the chief executive officer of Recours Four Kenya Consultants Limited - an award winning professional services firm based in Nairobi, Kenya that assists Organizations in Recruitment, Training and HR Consultancy functions. Gloria was recently listed on Forbes Africa Top 30 ‘Most Promising Entrepreneurs in Africa 2017’. She is also Winner of a Business Excellence Award Certificate, issued by World Confederation of Businesses, USA 2017. Besides, she is the chairlady of an investment firm called Prosperity Investments Group in Kenya which has ventured solely into real estate investment.
How did you get started as an entreprenuer? I basically felt like I needed to be a part of the human resources industry because in Kenya, our unemployment rates were alarming. I wanted to be part of a social change and make a difference in the human sector as a whole. Initially, I started the business by doing CVs for people. I started with doing CVs for friends, family and workmates. I realized that many people were clueless on how to construct a professional CV and as I got to do many CVs, I realised that interview skills were also a big problem. This was my motivation. I wanted people to be able to acquire jobs easily by enabling them to construct a professional CV because let’s be honest, a CV is the point of first impression. A good first impression can get you through the door to a first interview. Later, I expanded the business to include other services and engaged industry specialists to push the services along thus, making us a fully expert driven company. Tells us more about Recours Four Kenya? Recours Four Kenya Consultants Limited is an award winning, youth focussed,
By Jennifer Nyawira fully registered limited liability company in Kenya. It is a full spectrum consulting services firm that has been assisting public-sector organizations, private, government, non-profit and for-profit organizations. We have an organized team of consultants who have extensive experience in recruitment, training, psychometric testing, salary survey and HR Consultancy services with a combined professional staff experience of 30 years in Human Resource Management. We recently won an award as Best Corporate partner 2016 and are nominees for the Star Quality in Leadership award – gold category that was held in France in May 2017 by the Bid Group.
What inspired you to start the company? I was motivated by passion for socio-economic impact in the country. The need to do more in order to build Africa, improve our economy and get more people employed and to get employed people to excel in their roles was another driving force. What sets your company apart from other players in the market? We have excellent customer service on all our platforms. Besides, we have a fast and efficient recruitment portal, a functioning payroll system and a large database of candidates. What can you say you have achieved so far? We are a professional services firm backed by professional accreditations in Kenya. We offer training which is accredited by the National industrial Authority in Kenya and our Consultants are members of the IHRM which makes us different from most of the Organizations in the same industry. We have a great customer referral system, high retention rate from our recruitment services and amazing reviews from our client base, which has grown tremendously over the years. Our clients include: The
World Bank, International Federation of The Red Cross, Imperial Group of Hotels, The Foschini Group - South Arica among others. Could you tell us some of the fundamentals of starting a business? It is important to create great channels of communication between you and your team. Furthermore, have an open door policy and allow your team to be innovative with ideas, avoid micromanaging. Also, be patient, Rome wasn’t built in a day. It takes some time to build a thriving business. Have you faced any challenges, and how did you overcome them? Well as the business grows, different problems and opportunities demand different solutions. You find yourself constantly in need of the right systems, right skills, market research and basically new innovative ways of reaching your market. All this needs constant cash flow, planning ahead and great financial management. Most of the time, funding can be a major problem for most businesses. What gives you the most satisfaction being an entrepreneur? Solving a social problem – youth unemployment
What are your future plans and aspirations for your company? We have opened a subsidiary in South Africa - Recours Four South Africa Consultants (Pty) Ltd which is currently operational in West tower, 2nd Floor Maude Street at Sandton, Johannesburg, South Africa. What’s the biggest piece of advice you can give to other women looking to start-up? Never let someone tell you that you cannot do something. If something isn’t out there, go create it. www.destinafrica.co.ke
Africa 24 Youngprenuer
2020 The young entrepreneur plans to start a radio station, and open up a disruptive online store by 2020
How Trushar Khetia Built a Successful Outdoor Advertising Company He has been recognized by Forbes as one of ‘Africa’s 30 most promising young entrepreneurs By Alex Nyamu
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E
very day, Kenyans, especially those living in Nairobi, spend a few hours in traffic jams. It is a nightmare that is not ending soon, despite the government’s effort to develop and expand roads to ease traffic.
While many view it as chaotic, for Trushar Khetia however, it was an opportunity in disguise. In 2013, the young executive founded Tria Group, an outdoor advertising company that uses public transport vehicles to market leading consumer goods. “The whole idea came about after I simply looked at the public transport sector and realized how people spend much of their time in traffic,” says Khetia. That is how he founded a niche in the transit media sector. Having studied and worked abroad, he realized that almost all buses had advertisements, unlike here in Kenya where the opportunity was barely utilized. Besides, being exposed to heavy public transport when he was a student inspired him to do creative things. Khetia says that it was the uniqueness of the transit media that made it easier to break into the Kenyan market. Today, the public transport industry has evolved in terms of media advertising and it has become increasingly accepted. “We have clients reaching us, unlike before when we had to persist to get business.” Tria Group has also diversified to what Khetia calls “out of home media”. This is a great opportunity for the company since people are spending more and more time out and about. “We are targeting bus shelters and so far we have put up seventeen bus stops at prime locations in Nairobi,” he says. The bus stops not only act as public shelter or a platform for advertisers to market their products; but they also act as a business spot as each of them has a kiosk.
The company has also expanded to mall advertisement and is already in Thika Road Mall and Sarit Center. Here, customers get a chance to interact with the brands in a more relaxing environment. Furthermore,
Sometimes we do not realize that we are so close to the finishing line. Most people quit when they are just about to cross that line the company has ventured into airline advertisement.
Tria Group has presence in Kenya and Tanzania and has been able to serve some of the major corporate among them CocaCola, Dell, Google, HP and Unilever. Society Stores About one and half years on from the launch of the Tria Group, Khetia decided to diversify his business with the launch of Society Stores. The retail venture has become one of the most popular supermarkets. “In business, you have to keep on diversifying,” he says.
His passion for owning a chain of retail stores started during childhood, having been brought up in a business environment. Besides, most of his previous employments were within the retail sector, while in Tria, most of his clients deal with Fast-moving consumer goods (FMCG). “Our business strategy is acquisition,” he reveals. Khetia opened his first Society Stores shop in November 2014, after acquiring an established supermarket in Thika. The business has grown exponentially in a span of two years from one to five stores spread in Thika, Meru, Maua, Kayole and Naivasha. He is set to launch another store in Limuru. Out of these, four have been acquisitions of existing businesses, while the rest have been built from ground.
Khetia chose to locate his stores upcountry and in busy agricultural towns as he feels that is where the opportunity lies.
By putting up the retail chain, the young entrepreneur is happy that he has changed the lives of many people. Starting with only 60 employees, today, Society Stores has raised the number to 380. He has also developed some of his staff from junior positions to managerial levels.
“Seeing other people grow is what gives an entrepreneur the feeling of satisfaction,” offers Khetia. Experience The experience of starting and running your own business appears easy from the outside, but it comes with a lot of responsibilities and sacrifices.
Khetia observes that there is no tougher examination of one’s abilities than running a business. However, with passion and determination, he has built two successful ventures in a span of three years. For him, that has been a learning experience that has stretched his capacity and he believes he has become a better business person. As the CEO and founder of Tria Group and Society Stores, Khetia is responsible for managing the day to day running of the businesses, selling and maintaining client relationships. He has transformed his company from a start-up to a corporate.
He was also recognized by Forbes for the 2nd year running as one of ‘Africa’s 30 most promising young entrepreneurs in 2016. The young entrepreneur plans to start a radio station, and open up a disruptive online store by 2020.
He urges young people to let their passion manifest during tough times. “Sometimes we do not realize that we are so close to the finishing line. Most people quit when they are just about to cross that line.”
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Africa 26 Main Story
Vaell, The Regional Giant in Leasing Solutions The company provides innovative solutions to help customers grow their businesses By Jennifer Nyawira
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hen it comes to asset leasing, no one does it better than Vehicle and Equipment Leasing Limited (VAELL), an independent leasing and consulting company in the country as well as leasing market leader in east and central Africa. Founded in 2006, the company has established itself as the leading expert in asset and plant lease acquisition and maintenance.
“We basically deal with operational leases,” says Mr. John Mogire, commercial manager at VAELL. Besides, the company deals with only long-term leases of between three to four years. To lease with VAELL, a business must be in operation for at least three years.
The firm prides itself as a leader in the leasing market, offering services to corporates and small and medium enterprises (SMEs) ranging from health, IT and telecommunications, banking, manufacturing, agriculture, construction, Government and regulatory bodies. This has positioned VAELL as a one stop shop where you can get any equipment you need at any given time. In 2013, VAELL formed its subsidiary, Quipbank, a separate entity offering short –term tailor-made leases and rentals of agricultural equipment and machinery to farmers in different parts of the country. Mr. Mogire says that the agricultural sector www.destinafrica.co.ke
Agricultural equipment.
in Kenya is on a growth path. Quipbank was therefore launched to tap in that sector. The availability of machine rentals enables farmers, who lease out their land and do not have their own machines, to farm more productively. Head office Recently, VAELL moved its head office to Naivasha. “We felt the location is central, and with the emergence of Quipbank, it
Cherry picker.
is easier to supply equipment on shortterm basis.” Besides, most of the country’s farming and development is taking place in the rural areas. Mr. Mogire also reveals that they are expecting over 480 vehicles back from lease this year, and storing them in Naivasha is quite cheap compared to Nairobi.
Headquartered in Kenya, VAELL’S presence felt in in six other African countries: Uganda, Tanzania, Rwanda, Burundi, Zambia, and Malawi. In addition, the company has ability to offer leasing services in over 20 other countries in the continent through off-shore structures. With about twelve years of experience, VAELL has built a reputation of trading www.destinafrica.co.ke
Africa 28 Main Story
with integrity across the various markets where it operates.
Leasing solutions The company offers a full suite of solutions in operational leases. “We lease all types of assets as long as they are movable,” offers the commercial manager. The wide range of solutions include vehicle, industrial equipment and machinery, computer and IT equipment, office furniture, medical, dental and veterinary and gym and fitness equipment. VAELL was also the first company to lease vehicles to the government. “Our latest solutions have seen us become a leading provider of asset leasing acquisition solutions to governments in the region with a fully-fledged Government leasing Consulting Division.”
Clients have the freedom to choose from dry, partial or wet operating lease. In dry operating lease, the client rents the asset and bears all maintenance and service costs. In terms of partial lease, VAELL sources, procures and delivers the vehicles or equipment and bears all the insurance costs of the asset. The wet lease, according to Mr. Mogire, is preferred by most corporate clients, since the leaser bears all ownership risk and maintenance costs. The firm has differentiated itself from other providers in the market by offering customized solutions to its clients. “We understand that each client has different needs. We therefore listen to our customers’ requirements and tailor make solutions for them to accommodate their needs,” notes Mr. Mogire.
Leasing benefits When structured properly, a lease agreement may allow clients to receive tax benefits. The operating leases have tax incentives and do not result in assets or liabilities being recorded on the lessee’s books of accounts. Companies get 30 percent corporate tax benefits. Leasing also allows companies to concentrate on their core business. “Corporates, SMEs and the government www.destinafrica.co.ke
Low bed trucks.
have ventured into leasing arrangements, which enables them to concentrate on their core business, cut business operational costs and increase efficiency in their daily operations.” Furthermore, operating lease gives businesses an opportunity to improve their cash flow. Outright purchase ties up capital that could be used for other investment opportunities. Leasing is therefore considered beneficial since it
frees company’s cash flows by doing away with the need to spend money by buying the required asset.
Strategic partnerships VAELL has developed successful strategic partnerships with major auto dealers, financial institutions and suppliers both locally and internationally to help it meet the unlimited market demand. It has for instance partnered with PTA Bank, and in 2017, it received financing to the tune of $9
million worth of equipment in Tanzania. The firm has been an Oikocredit partner since 2016. The worldwide cooperative and social investor is financing VAELL to support farmers with agricultural machinery and support services.
“We are currently working with other financial institutions to finance agriculture, since there is a lot of development in the sector,” notes Mr. Mogire. Most farmers have been trained and can now use equipment in their farms, which increases efficiency and reliability. Mr. Mogire also says: “We have managed to change peoples’ mindsets from buying of assets to leasing.” Unlike multinational companies, most firms in Africa previously preferred buying of assets, and ended up tying most of their capital. Leasing has therefore started gaining popularity not only in Kenya, but across Africa. There is a huge demand for construction equipment in 2018, which has for the first time surpassed that of motor vehicles. It is based on the fact that there is a boom in the construction sector in the country and most contractors have resulted to leasing, which they deem economical. The current development is a growth from the downsizing experienced in 2016 after the capping of interest rates and the 2017 general elections. Considering most financial partners are risk averse, SMEs have little or no access to credit, which affects the leasing industry negatively.
QUIPBANK
The EABC awarded VAELL as the best East African company in the service sector
As Quipbank we sell and rent top quality branded agricultural machinery across east Africa. We have no brand affiliation but we work with popular brands among them Volvo, John Deere so our clients can have up to date machinery at a competitive price. Due to the rising demand for construction equipment with some of the equipment not available in the country, we import the equipment and lease them to local contractors.
Telescopic handler.
Quipbank understands that new agricultural and construction equipment are very costly and opt to work with farmers and contractors to provide leasing options. Our leasing options include making partial monthly payments for a specified time frame while having the tools to get your job done. We have working plan that suits your budget and needs we evaluate factors such as monthly or annual budget and your business needs. Some of the many benefits of renting equipment’s with Quipbank is that you are able to be deducted business expenses on your tax return. Rent-to-own product Plans are underway to launch the rent-toown product. Mr. Mogire says that it will give customers a chance to lease an asset for a specific period of time and eventually own it. The monthly pre-payments will build up to the purchase consideration.
EABC (EAST AFRICAN BUISNESS COUNCIL) AWARDS
The EABC awarded VAELL as the best East African company in the service sector. We were up against Cv People Tanzania that was the first runners up and E.A tea traders that took the second place. We thank all our esteemed clients. www.destinafrica.co.ke
Africa 30 Energy Management
Farmers Choice Limited team receive the Best Most Improved Award, during the 14th Energy Management Awards 2018.
Farmers Choice Bags Best Most Improved Energy Management Awards
The company is currently investing in renewable energy including biogas and solar to reduce its dependence on the national grid By Felix
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armer’s Choice Limited won the Best Most Improved Award at the 2018 Energy Management Awards.
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The awards, themed ‘setting the pace in resource efficiency towards competitive local manufacturing’, awarded over twenty companies that have achieved substantial reductions in their energy consumption through implementation of energy efficient measures and technologies.
The awards are organized by the Kenya Association of Manufactures, an industry lobby group that brings together the manufacturing sector in Kenya, and supported by various local and international stakeholders.
This was the second time for Farmers Choice to participate in the awards. According to S.N Mbugua, the company’s operations director, Farmers Choice is an energy intensive manufacturing unit. Saving on energy would therefore cut the cost of production.
The awards also act as a benchmarking platform. “We believe they give us an opportunity to see how other companies conduct their business,” says Mr. Mbugua.
The operations director attributes the awards to enhanced energy consumption and staff awareness. “We have made great strides in improving our water and energy consumption and enhanced staff awareness on such matters in the past few years.”
Renewables is always a good bet and other manufactures in Kenya should emulate the same. They should also invest in people, if they are looking into low cost savings The company has invested in solar energy for heating water before it goes to the boilers. It is also using biogas generated from effluent to do some of the cooking. “We have changed from the normal lighting to LEDs and they use as little as 10 percent of power to achieve similar results, says Mr. Mbugua. Many of these investments and activities show Farmers Choice’s concern to save energy, something that also attributed to winning the award. So you are using more of renewable energy? “No. we are an energy intensive company, currently operating on 1.5 megawatts. There is no way we can replace our power supply from the national grid with renewable sources,” Mr. Mbugua further notes. Much of the energy is based on the refrigeration system. The company however understands the benefits of effective energy management, because it provides an opportunity to optimize energy costs by understanding energy flow as well as procurement and economics of energy, and reduce its harmful impact on our environment.
“Our effort to use renewable energy helps in saving the environment,” says Mr. Mbugua, adding that “We try to strike a balance between profitability for the company and environmental sustainability.” By doing this, they deviate
from compromising the future ability in their efforts to curb climate change.
Companies, especially those in manufacturing, must focus on two objectives: minimizing cost of production and saving the environment.
What it means for the company Having won the award meant a lot for the company. It is an inspiration and Farmers Choice feel motivated to do even more. According to the operations director, the firm is investing in green production, a business strategy that focuses on profitability through environmentally friendly operating processes. Going forward, Farmers Choice plans to continue taking advantage of available opportunities. It’s looking at ways to generate more biogas and make it more efficient.
It also plans to expand its solar energy collection, minimize steam losses, enhance heat transfer in the cooking processes, and advise staff on such matters. Mr. Mbugua says that achieving energy efficiency involves a whole spectrum of activities as well as funding. ERC compliance Farmers Choice complies with energy and
regulation commission (ERC) rules on installing solar water heating. The idea is to reduce the cost of fossil fuels. It is also adheres to the Energy Management Regulation.
“Renewables is always a good bet and other manufactures in Kenya should emulate the same. They should also invest in people, if they are looking into low cost savings.” Businesses should also focus on providing products and services that people value while using fewer resources and respecting the environment. This is in line with the energy management awards that are geared at encouraging a culture of energy efficiency and conservation, and recognize enterprises that have made major and sustainable gains in energy efficiency through the application of modern energy management principles and practices, and in the process made significant energy and cost reductions. Energy is a significant enabler in achieving the Big 4 Agenda. The Government is committed to the provision of affordable, reliable, quality and sustainable power. This is evident in the various projects that different government agencies have embarked on. www.destinafrica.co.ke
Africa 32 Hospitality
By Nazir Khamisa
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ourism has always been looked at as a vehicle for economic growth and job creation all over the world. The tourism sector is directly or indirectly responsible for about 8.8% of the worlds jobs. The world travel council estimates that 3.8 million jobs could be created by the tourism industry in Sub Saharan Africa over the next 10 years. Kenya’s economy grew by 5.8 percent in 2016 the highest in five years supported by a significant increase in tourism earnings and the ever-growing construction sector which also has an indirect contribution to the economy since there are in the region of 20-30 projects in just hospitality in Nairobi alone that are under development. Data from the Economic Survey 2017 showed a turnaround in the tourism sector, which grew 13.3 % after contracting 1.3% the previous year.
The hospitality industry is on a trajectory in Kenya. You only have to look around you and see the massive development of Hotels and Serviced apartment hotels, restaurants, coffee shops and other eateries have taken
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The Future Outlook For Hospitality in Kenya
The Tourism board under the leadership of Hon Nagib Balala is doing a tremendous job of promoting Kenya as a destination for Golf tourism, sandy beaches, MICE location and of course the famous Wildlife experience in the Masai Mara
our capital city and changed the dynamics of how we are positioned in the market place. Nairobi today for both, the hotel scene and the food scene can hold its own as a world class city. New investments keep coming up and being established by both local and foreign investors in and out of the city. More than 10 Hotel chains have already opened in Nairobi during the last year. These new properties, will add 2400 guest rooms while expanding Kenya’s hotel capacity by 13% and exceeding last year’s expectations. The Tourism board under the leadership of Hon Nagib Balala is doing a tremendous job of promoting Kenya as a destination for Golf tourism, sandy beaches, MICE location and of course the famous Wildlife experience in the Masai Mara. We are definitely on the map as a preferred destination. Although PWC forecasted increased investment activity in the country, it also predicted that occupancy will drop over the next two years before rising again in 2019 from guestroom oversupply. In 2021, Kenya hotels are forecasted to gain a total of 4.4 million guest nights, a 4.1% compound annual increase from 3.6 million in 2016. It is refreshing to see the efforts that all stakeholders are putting to promoting domestic tourism in the past few years. We have a growing middle class and we also have some amazing tourist sites all over the country that are a must visit. The
If all stake holders are included and all focussed on the agenda, tourism and hospitality is set to become a key income generator for Kenya
landscape and the scenery are breathtaking. Kenyans are increasingly travelling local and the Devolution has opened counties for investment and local travel. Counties are also aggressively marketing their sites and wooing local travellers to their region.
There are amazing facilities in the county, I am not being biased but look at the Acacia Premier in Kisumu, the facility has set standards and raised the bar in the whole of the Western Region. There are also other players in the region. I come from Kisumu and I can confidently say that Kisumu is on the map now as one of the best destinations in Kenya. Recently the devolution conference was held in Kakamega and we know that the preferred choice for stay for most of the attendees was The Acacia Premier in Kisumu. The message here is that the counties are ready for nice and professionally run Hotels. There are a number of factors that have played a key role in improving the hospitality and tourism industry; the road network in the country has opened different areas, the SGR which has made our trips to the coast shorter and stress free, an increase in flights to Kenya and lower park fees . With all these and a stabilizing economy and political climate the hospitality sector is set for a boom.
Efforts by the Ministry of Tourism and the Kenya Tourism Board cannot go unnoticed, the ministry recently set up a task force that is reviewing Kenya Tourism Strategy and to develop a marketing strategy for convention tourism in Kenya. I think this is a huge opportunity for the country and a world class convention centre would certainly help. Recently we have read about the increase in poaching of our wildlife. This makes me very sad and this problem must be taken seriously and addressed. If all stake holders are included and all focussed on the agenda, tourism and hospitality is set to become a key income generator for Kenya.
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Africa 34 Mobile Technology
By CHRISTINE NJOROGE
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Growth in Mobile Technology and its Socioeconomic Impacts
he speedy growth in mobile technology in the current time has a range of socioeconomic effects. It has helped to attract funding from the global community, which plays a major role in funding the Sustainable Development Goals (SDGs). The Organization for Economic Cooperation and Development (OECD) says that approximately $135 billion is contributed by the global community every year for development assistance. The mobile infrastructure, mobile payments, mobile services and machine-to-machine connectivity is expected to help achieve the SDGs by 2030. Socioeconomic impacts One of the socioeconomic impacts of mobile technology is enhancing access to water and sanitation. Greater access to mobile technology has led to increased access to such utilities, especially among the rural populations. Mobile technology has bridged the gap and is playing a major role in eradicating extreme poverty. The widespread availability of mobile phones has enabled the development of lowcost solutions aimed at improving water security and reducing poverty. Some countries are using mobile strategies
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It is projected to generate over $4.3 trillion or 4.9 percent of the growth domestic product by 2020
such as supply mapping, smart-card tap system, and water management by SMS to help people get better access to water and sanitation. Secondly, mobile technology allows inclusion, by guaranteeing universal internet access. The GSMA Connected Society is working to ensure greater connectivity and internet adoption by focusing on four enables: infrastructure, affordability, consumer readiness and content.
Furthermore, it is enhancing financial inclusion. Mobile technology has helped in banking people who lack access to formal financial institutions. The growth of mobile money agents, which reached 4.3 million in 2016, is good evidence. The agricultural sector has also benefited greatly through mobile money payments. International transfers of money have also lowered thanks to mobile money. It is also worth noting that mobile technology has led to tremendous increase in messaging platforms. Most of them are messaging apps such as WhatsApp and Facebook Messenger, which have attracted a large number of users. In 2016 for instance, approximately 3.6 billion people were using various platforms compared to 2.8 billion in 2015. Other innovative services include Airbnb, Uber and cloud computing. Investors have taken advantage of the digital revolution to benefit from the available opportunities. Telecom companies are working together with tech startups. Mobile operators are also increasingly investing in developing markets to tap the ready market. The investment in 2015 was $3.2 billion, compared to $1.4 in 2014. This was a great increase from the $0.1 in 2010 and 0.4 in 2013. There is no doubt that investment in the telecom industry is growing at a high rate. Regulations There is no doubt that the growth of mobile technology will affect regulations in different areas. The digital economy
Governments are also revamping their regulatory frameworks to ensure they reflect the industry growth and offer a firm foundation for future growth, competition, innovation and investment
is complex and dynamic and as a result, regulation must be flexible. It also requires policy reforms where necessary. As a result, policymakers in various regions have initiated a revamp on how the industry administered. The European Commission is a good example which is revamping its telecom’s regulatory framework. The objective is to attain universal and high-speed connectivity in the European Union. Governments are also revamping their regulatory frameworks to ensure they reflect the industry growth and offer a firm foundation for future growth, competition, innovation and investment. The digital economy has grown tremendously and is expected to accelerate going forward. The mobile ecosystem is expected to grow both in absolute and relative terms. It is projected to generate over $4.3 trillion or 4.9 percent of the growth domestic product by 2020. The growth is linked to productivity, especially in developed nations and it will be a result of mobile internet connectivity and adoption.
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Africa 36 Human Resource
By MWABA JOSEPH
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urrently, almost all organizations recognize that employees are perhaps the most important asset. In regard to this, they endeavor to provide a motivating workplace in order to remain successful in the present-day extremely competitive business environment. Organizations regardless of their size are striving to motivate their employees through various monetary and non-monetary incentives to retain the best. Organizations have recognized the contributions and influence of their staff in their effectiveness and productivity. Highly motivated people are more productive since they identify well with the goals and objectives of the organization. They are more creative, innovative, do high quality work and perform optimally. On the other hand, people who are not motivated to carry out their roles and attain their personal as well as organizational goals make it hard for the company to compete effectively. Such people have a high probability of quitting their jobs, performing low quality job and even avoiding the workplace. Therefore, motivation in workplace is an essential aspect for managers and corporate leaders. They are increasingly looking for ways to motivate their employees by first understanding their needs since they vary from one person to the other. Different people are motivated
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Motivation in Workplace: Why is it Important?
by different things and acknowledging that is the only way to make them happier. Motivation is the force affecting the intensity, persistence and direction of voluntary behavior. It is a key factor influencing individual performance and behavior. Research shows that motivated employees are willing to exert a particular level of effort (intensity) for a certain amount of time (persistence) toward a particular goal (direction).
Why motivation is challenging Research has shown that motivation in the workplace is not an easy task. In fact, 92 percent of employers deem it a challenging task. It is based on various reasons. To start
with, the current wave of globalization; speedy growth in information technology as well as corporate restructuring have radically changed employment relationship. Such alterations have reduced the levels of commitment among organizations towards motivating employees.
Secondly, in their move to cut costs, many corporations have currently compressed their organizational structure. It means employing a few supervisors who are tasked with monitoring the performance of many employees. While reducing costs is a great strategy, supervisors are however burdened making it difficult for them to perform their job optimally. It is hard for them to effectively monitor all their followers especially the slackers who must be watched closely. It is however worth noting that, closely monitoring employees is a command-and-control approach that may not work well with the current breed of educated workforce. Organizations should therefore implement modern strategies that fulfill the needs of all of their members to make everybody delight in the feeling of motivation. Thirdly, the generation- X and Y employees have altered workplace expectations by bringing new ones on the table. Although these employees were previously deemed as laggards, the truth is most organizations have not implemented effective strategies of motivate them. Compared to their older colleagues aged 35 and above, a large percentage of the younger staff aged between 25 and 34 feel demotivated.
It means that motivation varies from one age group to another and employers must find motivation factors for each to build successful organizations. It is so especially in the current time where the new generation is replacing the older generation, and increasing their motivation potential could create a more productive and successful workplace going forward. Intrinsic and Extrinsic Motivation Some motivation drivers are intrinsic,
meaning they come from within. It is fueled by an internal desire to achieve something, and involves performing a job since one enjoys doing it. It is important for employers to identify intrinsic motivators among their staff since offering external rewards in such cases may reduce intrinsic motivation. It means that some employees are passionate about what they do and could complete a task without being pushed. On the contrary, extrinsic motivation comes from the outside. It is driven by external factors. Employees perform a task to get something in return for instance, a reward. Others perform their tasks to avoid punishments like being fired or given job warnings. It is therefore important for organizations to understand their employees’ needs to know which motivations tactics best suits them. That is only possible if corporate leaders recognize and envisage employee behavior as that could help them understand what really motivates their staff. Abraham Maslow has explained this in the hierarchy of need theory. The psychologist has identified and arranged in a hierarchical manner five needs that motivate individuals. They include psychological, safety, belongingness, esteem and self-actualization. The implication of the Hierarchy of Needs Theory in the workplace is that different employees are motivated by different needs and such needs change with time.
Employers should therefore implement appropriate motivation strategies including positive reinforcement, restructuring jobs, treating employees fairly, setting goals, recognition, promotion, providing growth opportunities and giving monetary and non-monetary rewards based on job performance. This in turn helps the organization meet its goal, raise employee efficiency, generate workforce stability and create team harmony.
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Africa 38 Corporate Fitness
By Jennifer Nyawira
Philosophy Concerning Global Health Problems and Solutions
G
lobal health is a growing area of concern that has attracted the attention of not only scholars, but also international leaders and organizations. This is based on the fact that there are a range of challenges affecting global health. Additionally, a country cannot promise the health of it population without addressing problems affecting other nations across the world. The undesirable disparity in health between and within nations and advancement in technology are other problems.
Countries the world over are suffering from chronic and infectious diseases such as cancers, cardiovascular illnesses, diabetes, malaria, Zika, HIV/AIDS, tuberculosis and chronic lung diseases among others. These diseases are draining household resources. The poor are mostly affected since they lack resources to access healthcare. In regards to this, global health problems necessitate global initiatives. The best approach to spending global health funding is by allocating it to the most cost effective interventions and to the most stubborn problems, those causing most deaths and
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Ensuring universal health coverage should also be put into consideration, since it could help the world attain health objectives outlined in the Sustainable development Goals (SDGs)
affecting most people. The United Nations agencies, the private sector and developing countries are major recipients of global funds and they should ensure that they foster innovative interventions to address immediate problems and focus on longterm prevention. Health priorities A major health priority is achieving an Aids-free generation. Global health intervention could help in ending HIV/ AIDS by the year 2030 according to the United Nations. The Centers for Disease Control and Prevention (CDC) plays a major role in leading international effort towards achieving the goal. Interventions such as the use of antiretroviral drug therapy (ART), medical male circumcision, HIV counseling and treatment and lifesaving treatment is playing a major role in the prevention and treatment of HIV.
Secondly is alleviating illnesses and deaths from malaria. Malaria killed 429,000 people in 2015 and led to 212 million illnesses. It has a global projected financial burden of US$ 12 billion yearly. Globally, about 3.2 billion people have a high likelihood of contracting malaria. Through global health interventions, CDC, World Health Organization (WHO) among other world partners have helped in saving 6.8 million people worldwide between 2000 and 2015. The agencies are offering important information and effective interventions such as developing evidenced based guidelines, rapid diagnostic tests, indoor spraying and protecting pregnant women and their unborn babies. Furthermore, responding to global health emergencies is another priority area. Global health intervention helps in responding to major outbreaks including Ebola, Zika, cholera, yellow fever and natural disasters among others. The Global Rapid Response Team (GRRT) was formed in 2015 and has so far responded to emergencies in 27 countries. According to Global Health Council, the outbreak of Ebola in the West African nations in 2014 was the worst global health problem of the time that attracted both personnel and financial assistance.
There is no doubt that global health problems are threatening the world, especially the vulnerable and those in developing countries who lack health insurance and access to proper health care Ensuring universal health coverage should also be put into consideration, since it could help the world attain health objectives outlined in the Sustainable development Goals (SDGs). Approximately half of the globe’s population lacks health insurance, and out-of-pocket health expenses made approximately 100 million people extremely poor in 2010.
Most importantly, nations around the world should invest in training health workers, since they play a major role in guaranteeing global health. Training health professionals to boost their skills would help in prevention, proper diagnosis, treatment and management of chronic non-communicable illnesses, especially in developing countries.
There is no doubt that global health problems are threatening the world, especially the vulnerable and those in developing countries who lack health insurance and access to proper health care. Against this background, stakeholders should work towards strengthening existing health facilities and systems, capacity building by training health workers, allocating resources on the basis of need and disease burden, and empowering the community on the importance of health insurance.
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Africa
GREAT DRIVE
motor
2018 TOYOTA LANDCRUISER PRADO REVEALED www.destinafrica.co.ke
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Africa 42 GREAT DRIVE
W
hat’s interesting about Toyota’s proper off-road models is how they are not only practical, they are desirable. The brand’s big SUVs are an aspirational purchase for many. Anything that wears a LandCruiser badge comes with a certain set of expectations; it simply needs to be robust, reliable and capable.
Despite the smallest LandCrusier being officially called the LandCruiser Prado, most owners and fans refer to the car as the Prado. The LandCruiser name remains the preferred identifier for the larger 200 Series wagon. Now the Prado doesn’t really need to be spruiked, it’s currently the best-selling large SUV. Instead of just leaving it at that and adopting an ‘if it ain’t broke don’t fix it’ approach, the 2018 Toyota LandCruiser Prado has been bolstered with additional equipment at a lower cost. Toyota provided us with the entry-level GX and the mid-spec GXL for evaluation. The seven-seat GXL is generally the model with the feature list that appeals to family buyers.
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The GXL trim level adds Bi-LED headlamps, daytime running lamps, LED fog lamps, privacy glass, roof rails, side steps, seven-seats, an upgraded steering wheel and three-zone climate control. Regardless of the extra kit in the GXL, the GX is now generously appointed and presents a very compelling value proposition. The base model automatic Prado is very hard to ignore, with the GX getting 17-inch alloy wheels, from the outside it doesn’t look like a range opener, it’s only the nonbody coloured mirrors and door handles that give the game away.
All LandCruiser Prado automatic models now include the pre-collision safety system (PCS) with autonomous emergency braking and pedestrian detection, active cruise control (ACC), lane departure alert and auto high beam as standard. Previously, the best safety kit was reserved for the considerably more expensive VX and Kakadu variants – well played Toyota.
Selecting the six-speed automatic transmission also brings with it 450Nm of torque and a braked towing capacity of 3000kg which is a handy 30Nm and 500kg more
fort lends itself to being a good choice for a daily hauler to bus the family around.
than the manual. Automatic GXL models also get a rear differential lock.
Whether in town or on a highway run, it’s a supple ride, the Prado settles quickly and provides a well-insulated drive. The high level of refinement is comparable to any passenger car.
For 2018, the exterior design changes focus on improving the Prado’s drivability. The new bonnet is sculptured in the centre to enhance downward visibility while the fenders have been updated to allow drivers to better identify the vehicle extremities. There’s also a revised grille with broad vertical bars and cooling openings.
Some thought has also been given to off-road performance, the lower corners of the front and rear bumpers have been reworked and now kick upwards to enhance maneuverability in the rough stuff. The headlamps have been restyled with the main beams positioned inboard to avoid damage from obstacles when off-road driving.
It’s the inside where the updated Prado has undergone the most changes, the command centre layout remains with the built-up centre stack, but the polish is significantly better. The Prado’s interior was an area we criticised when we drove the car last year. Things are now much improved. The infotainment screen is now larger and incorporates satellite navigation. The instrument cluster has also been updated to include a driver information display that’s in colour and far easier to read. The velour trim on the seats is very soft and nice to touch, however, it does look out of place in 2018 in a 60K car. Surely, it’s plausible to switch to a high-quality cloth trim such as the one found in the RAV4. It’s easy to see why the Prado is a popular family car, the second-row is incredibly spacious offering a high level of comfort.
Pleasingly the third-row seats fold flat into the boot floor. There is still something of a compromise, to keep the ancillary fuel tank, the spare wheel remains mounted on the tailgate meaning it opens out instead of lifting up. While examining the back of the Prado, we encountered the rear cargo blind; it’s a very clumsy apparatus that it is far too fiddly to be considered family friendly.
Handling is where the Prado’s heft can’t be concealed; the body roll is really what should be expected from an SUV with a centre of gravity this high up. In all seriousness, it’s a small price to pay for the Prado’s overall usability. The Prado is now exclusively driven by diesel. The slow-selling V6 petrol has been dropped, leaving the familiar 2.8-litre turbo-diesel engine as the sole powerplant. In this tune, it’s good for 130kW and 450Nm, peak torque can be accessed from a lowly 1600rpm.
For this test, we uncovered a new off-road loop in order to make the Prado work a little bit harder to demonstrate its capabilities.
Simply put, the Prado is an excellent offroad wagon. The permanent four-wheel drive, hill descent control and ground clearance make the Prado perfect for attacking an off-road track. We know the LandCruiser will always be the king of all things off-road, yet the Prado has its advantages on account of its smaller proportions. The slimmer Prado makes navigating narrow off-road trails considerably easier. Any corrugated surface is easily ironed out, a few runs down uneven dirt roads demonstrates how cosseting the suspension is. Country folks flock to Toyota for reasons such as this. It feels invulnerable when hammering down a bush track.
Forward vision out of the Prado is excellent, those up front enjoy a great view of the road, combined with the large windows, all-around visibility is impressive.
There will generally always be on-road compromises with an off-road SUV of this size, yet Toyota engineers have done a remarkable job to deliver a proper dualpurpose wagon. The level of interior com-
After a combined 1569 kilometres of on and off-road testing in the GX and GXL, we returned a fuel consumption figure of 9.9L/100km. This is about 20 per cent more than the claimed figure, but considering the mix of driving situations we subjected the cars too, anything around the 10-litre mark is a very strong result. Regardless of which Prado variant you choose, it’s very unlikely you’ll be disappointed. It will handle anything a busy family can throw at it.
The 2018 version of the Prado is its best yet, the significant safety improvements, functional styling changes, greater towing ability and refreshed interior only serve to increase its value, especially in the entry variants.
2018 Toyota Prado Specifications
Engine 2.8L In-line four-cylinder, turbo-diesel Power 130kW @ 3400rpm Torque 450Nm @ 1600rpm Transmission six-speed automatic Combined Fuel Consumption 8.0L/100km Tank Capacity 87L Sub fuel tank 63L Length 4995mm Width 1885mm Height 1845mm (GX) 1890mm (GXL) Wheelbase 2790mm Kerb Weight 2240kg (GX) 2325kg (GXL) Ground Clearance 219mm Turning circle 11.6m Wading depth 700mm Service Intervals 6-months/10,000km
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Africa 44 TRAVELWISE
RwandAir Receives a Nod to Fly to the United States
R
wandAir has been given a goahead to have its passengers fly to the United States through a code- share agreement or wetlease arrangement with a duly authorised and properly supervised U.S or foreign air carrier.
This is a major milestone as the Rwanda national carrier awaits confirmation for direct flights between Kigali and the U. S. later in the year. The latest development therefore brings it a step closer to realizing that dream. An order issued by the U.S. Department of Transportation indicated that the permit
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became effective on 29 May this year. The airline applied for the permit in March 2017.
The U.S. Federal Aviation Administration is expected to conduct an audit in September for direct flights before Washington can give a green light. The FAA’s audit is a mandatory procedure for airlines seeking a permit to operate direct flights to the United States. This development comes at a time when Kenya Airways’ first direct flight to the U.S. is scheduled for October 2018. There is no doubt that the stakes in the regional aviation space are getting higher.
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Africa
EABC 2018
V
ll
L e a s i n g
Connect to East AFrica`s Largest Fleet
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