Kshs. 300 / Ushs. 9000 Tshs. 6000 / RWF. 2200 ISSUE 22 / 2018
INSIDE ECAP DISRUPTS THE WAY BANKS FINANCE SMES ENTREPRENEUR FINDS NICHE IN DRY STEAM TECHNOLOGY ANAYA POST-RETIREMENT HEALTH CARE FUND BY ENWEALTH FINANCIAL SERVICES
SPACE AND STYLE: QUALITY IS OUR VALUE PROPOSITION WINNIE NGUMI, CEO, SPACE AND STYLE
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Editor’s note
Kenyans to Brace for Hard Times Ahead
T
he long suspended value added tax (VAT) on petroleum products has taken effect. Through Treasury Cabinet Secretary Henry Rotich’s directive, the Kenya Revenue Authority (KRA) implemented the International Monetary Fund (IMF)-fronted tax .This comes to pass despite public uproar and suspension by the National Assembly through the amendment to Clause 18 of the Finance Bill 2018. The suspension by the Assembly is awaiting the president’s approval. The implementation of the 16 per cent VAT has a ripple effect and has far and wide consequences including high cost of living and rising inflation among other tough economic conditions. High fuel prices affect transport, trade and manufacturing. Many Kenyans, especially those at the lower end of the pyramid, are already suffering hard economic times, but are now forced to dig deeper in their pockets. The newly-introduced VAT has not only triggered bus fare increases, but will also result in high prices of maize and wheat flour following a recent statement from the chairman of Cereal Millers Association. In a statement, the Association said that the VAT will have an additional ripple effect on the cost of electricity, packaging and other costs of production that are fuel-related. This is a big blow to ordinary Kenyans considering maize is a national staple food.
Although the government needs money to fund its Sh. 3 trillion budget, it should come up with other ways of raising revenue, rather than condemning ordinary Kenyans to high living costs.
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Contents 18.
REAL ESTATE
5. EDITOR’S NOTE 10. GET INSPIRED 12. CORPORATE NEWS
16.
Liquid Telecom Visa
16. TECHNOLOGY Through Its Reverse Factoring Solution, ECap is Set to Disrupt The Way Banks Finance SMEs to Encourage The Flow of Liquidity 18. REAL ESTATE Mahiga Homes - Providing Affordable And Decent Homes For Kenyans
20. YOUNGPRENUER Enterprenuer Finds Niche in Dry Steam Technology
26. ACTUARIAL
23. YOUNGPRENEUR
RCL Named Fund Actuary of TheYear at The Pension Awards
Saeed Abdirahman Rose to Become The CEO of Sidoman Investments LTD
24. INSPIRING WOMAN Winnie Ngumi
28. FINANCING
20.
Watu Credit Finds a Niche in Asset Financing
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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 Reuben Kimani Dr. Sikolia Wanyonyi & Professor Marleen Temmerman Hasnain Noorani Michael Armstrong MARKETING & DIGITAL Head of Digital and Marketing JACKSON THUITA Digital Content Producer AMANDA Digital Coordinator KATE ISSAH FINANCE & OFFICE MANAGEMENT Accounts – accounts@destinafrica.co.ke Head of Sales & Media STEVE – steve@destinafrica.co.ke
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Published by Forafrica Media P. O. Box 74298-00200 Nairobi, Kenya. Cell: (+254) 774 680 871 / (+254) 739 553 074 E-mail: info@destinafrica.co.ke Website: www.destinafrica.co.ke Destin Africa
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© 2018 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. www.destinafrica.co.ke
Contents 30. POST RETIREMENT HEALTHCARE
32.
ANAYA post-retirement health care fund by Enwealth Financial Services
30.
OPINION
32. REAL ESTATE 34. HOSPITALITY 36. FINANCE MANAGEMENT 38. FITNESS Antenatal Care Critical in Detecting and Correcting Foetal Abnormalities During Pregnancy
40.
40. MOTOR 2018 HONDA HR-V
44. TRAVELWISE British Airways Celebrates Award for World-Class Family Travel as 150,000 Customers Use Airline’s Dedicated Family Zone
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Get Inspired Provoking Quotes by Leading African Women Entrepreneurs
“If success means living with joy, contentment, and doing great things with my talent, then failure is the opposite of success. It means not living with joy, contentment, or using my skills and gifts. Failure would also mean not pushing myself out of my comfort zone, and not daring to try new things and ideas.” ~ Oreoluwa Somolu Lesi is founder and Executive Director of the Women’s Technology Empowerment Centre “The best thing about female entrepreneurs is that they have an inborn responsibility toward society and aspire to help others and enjoy doing it.” – Lorna Rutto is a Kenyan eco-preneur and founder of EcoPost “True success is about a passion to create a better world, live a life that you can look back on and be truly proud of.” ~ Dr. Ola Orekunrin, founder of Flying Doctors Nigeria “To improve innovation in Africa, we need to invest more in education. You cannot innovate when you do not have a good education.” – Bilikiss Adebiyi-Abiola, founder and CEO of WeCyclers
“Start at the bottom. You need 100% passion, 100% guts and a total belief in your vision and your determination to succeed. Be prepared to put in crazy work hours and all kinds of sacrifices, but most important.. NEVER GIVE UP!” .” – Bev Missing is founder of RAIN “Taking an idea that’s on paper or in your head and moving it forward into real, tangible action is the true spirit of entrepreneurship” -Njeri Rionge, co-founder of internet service provider Wananchi Online “My advice to women all the time is: If you want a certain future, go out and create it. Conquer your fears as that is what enslaves most women” – Divine Ndhlukula is founder SECURICO Security Services “My greatest wish is to see a global community where our society is embracing internet technology to positively change lives and improve the efficiency of work done in our offices” - Dorcas Muthoni is founder of Openworld Ltd “Failure is necessary for any learning curve. Failure makes you stronger, bolder, and less scared of taking risks.” - Nkemdilim Begho is founder and Managing Di¬rector of Future Software Resources Limited
“Entrepreneurs in Africa could also take it upon themselves to serve as role models by taking time to talk to young people in school and in other programs so the students can understand what entrepreneurship is and begin to consider it as a career path.”
– Anne Amuzu is co-founder and lead product developer of Nandimobile Ltd www.destinafrica.co.ke
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Africa 12 Corporate News
Liquid Telecom to roll out Sigfox IoT network across Kenya - the first for East and Central Africa.
Liquid Telecom to Roll out Sigfox IoT Network Across Kenya - in First for East and Central Africa Building of infrastructure has begun and will be ready for commercial launch in September 2018
L
iquid Telecom Kenya, part of the leading pan-African telecoms group Liquid Telecom, has announced a partnership with Sigfox, the world’s leading Internet of Things (IoT) services provider, to build and deploy a nationwide IoT network covering up to 85% of the Kenyan population. The new base stations will be connected to Liquid Telecom’s fibre network, to deliver guaranteed reliability and speed.
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Sigfox is a global IoT service and network provider in 45 countries that has pioneered low cost, low energy consumption, long range IoT networks. The launch of the IoT network in Kenya will support the Big Four agenda and will be used to connect sensors across all sectors, including agriculture and fishing, transport and logistics, utilities and energy, heavy industries, retail, and banking and insurance. It will also be used for smart
cities projects and in wildlife conservation. The introduction of a Sigfox “Low Power Wide Area Network” (LPWAN) is the first in the region, allowing users to use IoT technology wherever they are and positioning the country to apply costeffective local solutions using IoT.
“We are building an LPWAN that will enable us to connect literally anything. Be it your car, dustbin, desk, soil, water, parking spot, water tank, street light, manhole, fridge or pet - just name it,” said Joel Muigai, Head of IoT Strategy at Liquid Telecom Kenya. “This network will allow Kenyans to develop our own homemade solutions for the many unique socioeconomic and business challenges we face.” “For instance, why do we have to wait until a cholera case is reported for us to know there is a cholera outbreak? Why did we
have to wait until 11 rhinos were dead for us to know the water was too salty?” asked Muigai. “With the new network we are building, we can connect our sewer lines and automatically predict when cholera is about to strike, with the exact location and time. We can connect rivers and water points in our parks and monitor the water quality to automatically raise the alarm if specified parameters are exceeded. These and many more solutions can now be a reality in Kenya using this network.” The new network runs on the free ISM band 868MHz and will cost Kenyans as little as Sh100 ($1) per year per device or sensor, depending on usage. Previously, communication with any internet enabled gadget depended on Wi-Fi or GSM networks that require data bundles, local network signal coverage and a power supply. “Connecting remote sensors over mobile data requires high battery consumption or connection to the mains power supply, which is often challenging or not possible in rural Kenya. However, with the new IoT network, the sensors will require no SIM card and last up to 15 years without recharging or changing the battery,” said Muigai.
This new network puts startups and established operational businesses in a better position to develop devices and solutions that create new business opportunities and improve productivity
Sigfox has enabled its industry partners to develop wireless communication chipsets that IoT device manufacturers can use. In 2016, Sigfox industry partners introduced the first ultra-low-cost wireless chipsets for IoT devices for just Sh200 in the EMEA markets. In 2017, the company, in partnership with GCT LTE-M, announced another new chipset, which was the first ever to support both mobile connectivity (GSM) and the Sigfox IoT network. These chipsets will allow Kenyan companies to develop IoT devices for both Kenyan and global markets. “This new network puts startups and established operational businesses in a better position to develop devices and solutions that create new business opportunities and improve productivity.
The early adopter applications are likely to be smart cities, farming, logistics and transport, and utility metering,” said Adil El Youseffi, CEO at Liquid Telecom Kenya. To further promote development, Liquid Telecom Kenya will be working with incubator hubs and universities to enable students and startups to develop IoT solutions locally. “We are also looking to enable devices and solutions to be developed in Kenya as a way of stimulating
the local economy and creating more ICT job opportunities,” said Adil.
As part of its Go Cloud iniative, which is designed to raise awareness, adoption and usage of cloud-based services amongst startups in Africa, Liquid Telecom will also start a new initiative called Go Things that aims to accelerate IoT adoption in the region. This is a shared vision with Sigfox. “After an exhaustive selection process in Kenya, Sigfox selected Liquid Telecom as its exclusive partner because of the companies’ similar visions for the IoT sector in Kenya,” said Nicolas Andrieu, Vice President, Middle East & Africa. “Our company brings a technology that will revolutionalise the next generation of affordable IoT solutions and transform Kenya’s telecommunication infrastructure and reach,” he said.
In South Africa, Sigfox is working on projects in wild and farm animal monitoring, electricity and water metering, manhole monitoring, and driver behaviour. Globally, some of the live solutions include managing chocolate vending machines with Nestlé in Japan, rodent detection in Singapore with RatSense, security alarms with Securitas Direct in Spain, Portugal and France, and smart heating with Leanheat in Scandinavia. www.destinafrica.co.ke
Africa 14 Corporate News
payments in Tanzania. Maxcom Africa works with local merchants and banks to help local businesses accept online and mobile payments through built-in secure, encrypted protocols. Maxcom Africa also offers point of sale payments, online and agency services through a mobile app paired with a card-processing terminal.
From left: Charles Natai, Country Director Maxcom Africa, Jameson Kasati, Director General Maxcom Africa, Juma Rajabu, Founder and Executive Director Maxcom Africa and Sunny Walia, General Manager (East Africa) of Visa.
Visa on Mobile Sets up Shop in Tanzania as it Seeks to Expand Regional Footprint
V
isa Inc., the global leader in payments, has announced a strategic partnership with Maxcom Africa PLC - a merchant aggregator also known as Maxmalipo - that will enable more than 30,000 retailers in Tanzania to accept Visa on mobile payments, as well as 20,000 local agents to conduct cash deposits and withdrawals. This effort aims to connect more Tanzanian consumers to the global payment system. This comes as part of Visa’s strategic move to provide mobile payment services across East Africa.
This follows Visa’s success in Kenya where the solution was launched in partnership with partnerships with Barclays Bank, Cooperative Bank, Ecobank, Family Bank, KCB Bank, National Bank of Kenya, NIC Bank, Prime Bank, and Standard Chartered Bank. “Visa is committed to bringing more convenient, reliable and secure ways to pay everywhere around the world. Now, in www.destinafrica.co.ke
addition to plastic cards, consumers can use their mobile phones to pay with Visa. Visa on mobile will enable consumers to pay merchants or send money to friends and family, directly from their bank account via their bank’s mobile banking services.
It will also enable interoperable deposit and withdrawal services from appointed bank agents. Our partnership with Maxcom Africa will ensure that Tanzanians can pay using Visa on their mobiles at over 30,000 new retailers. This partnership reinforces Visa’s commitment to expand mobile payments acceptance worldwide. We are rolling out this strategic partnership as we lay the foundation in the Tanzanian market for an upcoming launch of Visa on mobile.” said Visa General Manager for East Africa, Sunny Walia. Maxcom Africa, a local Tanzanianowned company that is better known as Maxmalipo, aims to provide a simple, secure and reliable way for individuals and businesses to make and accept
“Our core aim is to help businesses provide their customers with a variety of payment options to transact seamlessly and securely on their mobile devices. Integrating Visa on Mobile enables us to offer more flexibility when our customers transact online, at physical point of sale or at bank agents. This partnership is timely as it fulfils the need for safe modes of cashless payments by our consumers and merchants,” said Maxcom Africa Director General, Jameson Kasati. Maxcom currently provides e-payment services on utility payments, transport sector, health and insurance, financial services and merchant payment services. Visa have approved Maxcom Africa as an innovative partner with secured platforms to fulfil the financial inclusion agenda in Tanzania.
Visa on mobile enables consumers to access their funds directly from their bank accounts via their mobile banking app to pay merchants, send money to individuals, as well as deposit, or withdraw cash at any Visa agent. Enrolled merchants will receive a unique QR code with a Till Number that customers can scan using a smartphone or key enter using a feature phone respectively to make the payments. The funds move directly from the consumer’s bank account into the merchant’s account and provides real-time notification to both parties. Enrolled bank agents will also receive a QR code with a Till Number that consumers can scan using a smartphone or key entered from a feature phone respectively to deposit or withdraw funds into or from enabled bank accounts. The partnership, powered by a local Bank, CRDB Bank, aims to rollout Visa on mobile to not only accelerate digital commerce in the country, but also ensure a good consumer experience.
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Africa 16 Technology
Revolutionizing the Financial Sector Through Innovative Solutions Through its Reverse Factoring solution, ECap is set to disrupt the way banks finance SMEs to encourage the flow of liquidity By Jennifer Nyawira
gone to borrow very expensively from money lenders.
Innovative products “Our flagship product is the supply chain finance or reverse factoring,” says Mr. Nyakundi. It involves using the credit worthiness of the buyer, who is the bigger party in the transaction, to enable SMEs access funding. “Reverse factoring is something we’ve been pushing the market to embrace because we believe it is going to disrupt the working capital finance for SMEs,” offers the managing director.
By its very nature, reverse factoring requires significance liquidity, and partnering with Commercial Bank of Africa (CBA) provided ECap with the best go-to market strategy. CBA is the leading innovator in the market, and it fully understood and grasped the opportunity. The African Guarantee Fund (AGF) on the other hand came on board as a financial guarantor. It means that if the buyer does not pay on maturity of the invoice, the financing entity does not lose 100 per cent. That allows money to flow and pricing to be maintained at a reasonable level.
Other solutions on offer include receivables finance, working capital analysis and asset based lending. ECap is also innovating to bring about LPO finance to enable suppliers to get funding before delivering goods or rendering services.
Kefa Nyakundi, Managing Director, ECap.
E
stablished in 2015, Ennovative Capital (ECap) is a financial technology (Fintech) company that leverages technology to solve working challenges for businesses in Kenya and Africa at large.
The company was started principally to address a specific need in the market. “A key challenge facing many Small and Medium Enterprises (SMEs) in the country is cash constraints as a result of delayed payments from goods supplied,” says Kefa Nyakundi, managing director at ECap. The SMEs supply large corporate buyers in the www.destinafrica.co.ke
market, but they are not able to get funding to facilitate the supplies.
In regards to this, ECap has introduced an innovative solution that will see suppliers of corporate institutions receiving payment for goods and services offered, without having to wait for the stipulated credit period. It means that suppliers can use receivables from the corporate clients to access funding as opposed to borrowing.
This creates a great impact in the economy for SMEs who would have ordinarily waited for 90 days to be paid, or who would have
Commercial lending space The recent time is characterized by the rise of Fintechs that are disrupting different areas including lending and access to information. Most of the Fintechs known in the market place are disrupting the consumer financing space, where they are lending between Ksh. 1,000 and Ksh. 30,000. ECap is however operating in the commercial lending space. “For the economy to feel the effect of Fintech, we need to go to commercial lending,” says Mr. Nyakundi, adding that, “Our idea is to disrupt the way banks finance SMEs to encourage the flow of liquidity.” According to the managing director, the company has a product that will enable
In spite of these challenges, the company has a young, vibrant and knowledgeable team. This coupled with extensive experience gained over the three years and a solid foundation, means that ECap is set to scale up. Road ahead Mr. Nyakundi says the future is bright and believes in the next two to three years, they will be at a level where they can get funding from the capital markets through securitization of the receivables. This is when the real game will begin! ECap also plans to expand to the East African region and it’s already in talks with parties in the region including Uganda and Rwanda.
From Left: Millicent Palo, Commercial Director, Kefa Nyakundi, Managing Director, ECap and Esther Nina Oloo, Executive Director, pose for a photo.
many SMEs to get liquidity to enable them trade and grow. He says that in finance, profit is never the real issue, the real issue is cash. You can be a very profitable business, but without cash to pay your overheads, the business can close down. “We are participating in a space that is adding value.” Statistics show that, in countries such as Mexico, large scale adoption of reverse factoring could result in the growth of gross domestic product (GDP) by three or more digits, since you are injecting liquidity into the economy.
This allows SMEs to have greater access to working capital, especially those supplying to local and national government as they take long to pay. Data driven lending For a long time, it has been a requirement for borrowers to walk into a bank for assessment prior to accessing credit. Currently however, most banks are going digital.
In the same vein, financiers are doing behavioral as opposed to transaction based lending. Mr. Nyakundi notes that when you use behavioral data, there are predictive
analytics that will reveal if a borrower has a high probability of defaulting.
Data driven lending is something that has been adopted in the developed world. The managing director therefore encourages lenders to use data to manage their credit assessment.
Hurdles Like any other business, especially startups, the main challenge is raising capital. ECap has however designed innovative products and gotten support from investors who see the value proposition. The company has teamed up with big parties in the market such as CBA, AGF and International Finance Corporation (IFC). “We have also been forced to use our own money to do public sector work, for instance, educating the market on the products, despite there being many development institutions mandated with such roles,” reveals Mr. Nyakundi.
ECap is also using expensive international technology, and they are required to pay a license fee even if they are not trading.
Furthermore, the company hopes to be a significant player in helping SMEs in the market place. “In the next five years, we believe we will be the market place for working capital,” says Mr. Nyakundi. It means any SME that has provided value or has such opportunity can actually walk in and get funding, provide the service and make some profits.
“One of the disruptions we are hoping to create in the market is bringing as much liquidity as possible to finance the opportunities presented in the supply chain.” Globally, some of the biggest players to finance that opportunity are funds. Therefore, we are trying to find an opportunity to work with the pension fund industry, which is controlling very large chunks of money that should be invested in opportunities available in the market. As a Fintech, ECap plans to create an opportunity for pension funds where they can invest in short term corporate debts, and have an asset class called a receivable. This will in turn open up the space for financing working capital to larger players such as banks, high net worth individuals, and the pension fund industry among others, and eventually bring down the cost of borrowing for SMEs. Mr. Nyakundi however appeals to policy makers and development finance institutions that have more patient money to partner with them to help the many SMEs who supply government both at the county and national level.
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Africa 18 Real Estate
The property development company focuses on building at least 5,000 house units in a year from 2019 in line with the President’s call of providing very affordable houses
Mahiga Homes: Providing Affordable and Decent Homes for Kenyans By Jennifer Nyawira
W
hen Mahiga Homes was established months ago, the directors had one thing in mind - providing affordable houses that also appreciate in value. “The company was born out of the desire to transform peoples’ lives by fulfilling one of the basic needs of a human being, which is shelter,”
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says Mr. Patrick Muchoki, managing director at Mahiga Homes.
The property development company has differentiated itself from other providers in the market in terms of pricing. “Our houses are highly discounted to allow house buyers’ to get value in the short term,” he says, adding that “The price has never gone above Ksh. 3.75 M.”
The company also plans to start doing affordable holiday homes that will cost Ksh. 5 M or less
Ksh. 5 M
“We walk the journey with the customer by way of them paying deposit and the balance within a stipulated period of time at 0% interest.” Currently, Mahiga Homes has six projects namely Conerstone I, II, III and IV Estates, Kamulu and RockVilla Gardens. Cornerstone is a designed gated community located along Kenyatta Road and 10 minutes’ drive off Thika superhighway. Launched on February this year, Cornerstone I comprises 13 units, and will be handed over on 25th August. The houses were sold at Ksh. 2.9 M.
“At Mahiga, we have simplified the home buying process. Home buyers are required to identify what they want, we then match that with what we have, and finally, we build what you need.”
Three-bedroom bungalows model There is no doubt that Mahiga Homes is a different kind of a real estate company. Unlike most property developers who are currently investing in apartments, the company’s focus is different. “Our brand is three-bedroom bungalows, master en suit, each sitting on a 40 by 80 parcel of land,” offers Mr. Muchoki.
According to managing director, the idea was inspired by the fact that for a long time, the family unit has been forgotten. In some cases, children of the opposite sex are forced to share a bedroom and this may result in decaying morals. That is why; Mahiga Homes came up with a model that allows opposite gender siblings to sleep separately. Furthermore, each house unit sits on its own compound, meaning that there is
some privacy, and parents can bring up their children in the way they desire.
So far, Mahiga Homes has housed over 100 families, and according to Mr. Muchoki, this is one of their greatest achievements. He believes that in the real estate sector, there are many opportunities but it all depends with the individual. It means driving your business towards fulfilling the basic needs of a human being. Infrastructural development Mr. Muchoki notes that there are many challenges facing property developers among them availability of land. “For us to offer houses at affordable prices, we must get fairly priced land in an area with good infrastructure such as roads, water and electricity.” This is however not possible, especially in Nairobi.
In most cases therefore, when developers decide to develop land in an area with no infrastructural development, they are forced to provide such amenities, something that drives construction costs higher.
Additionally, fuel prices have a direct impact on the cost of construction. “Transport accounts for 30 per cent of such costs,” reveals Mr. Muchoki. This is a major blow to developers considering that fuel prices are expected to rise come September with the impending introduction of value added tax (VAT) on petroleum products, an eventuality that has been on the cards over the last two years. In spite of the various hurdles, Mahiga Homes focuses on staying true to its vision of offering very affordable houses. “Our target is to build at least 5,000 of such units in a year from 2019, thus aligning ourselves with the president’s call of providing affordable houses,” says Mr. Muchoki, adding that “Our goal is to provide a three-bedroom bungalow at less than Ksh. 1.2 M.” The managing director believes that the world is dynamic and there are new ways of construction apart from brick and mortar. The company also plans to start doing affordable holiday homes that will cost Ksh. 5 M or less.
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Africa 20 Youngpreneur
Entrepreneur Finds Niche in Dry Steam Technology Imagine going to work every day knowing what you do makes a difference for your family, your community and the environment. Imagine building an independent, secure future for you and your family, while creating healthier homes for your customers and protecting the environment. This is what Sammy Mochama, the founder of One-Up Supplies, is doing. Mochama says they have a unique business that makes the world better and meets a growing demand for green services. By Shaban Ahab www.destinafrica.co.ke
O
Tell us more about One-Up Supplies?
ne-Up Supplies is a surface management service company. We have made it our mission to make every home a healthier place by offering homeowners a single source for all their eco-friendly, green cleaning needs. Our Eco-friendly cleaning systems respond to the demand of homeowners who want cleaner and healthier homes. One up supplies uses the latest, state-ofthe-art equipment and environmentally safe products, including unique technologies that clean without leaving harsh irritants or residues that can impact health conditions or enter the ecosystem.
How did you get started as an entrepreneur?
The true entrepreneur never decides to become one; you either are, or you are not. I often get asked why I became an entrepreneur. Why did I start my own company? I could answer, that the change agent in me did not like working for large corporations and instead, wanted to build my own business and make things happen. However, neither of these reflects the reality. My answer, much to the surprise of most, is that I became an entrepreneur out of necessity. Throughout my life, I found entrepreneurship to be the one constant that I could keep coming back to.
I first started working while still in high school as a way to make pocket money. My parents had a wet and dry vacuum cleaner which I would use to clean carpets and seats for my relatives and my mother’s friends and they would pay me for the service. I was also happy for leaving the place better than I found it.
During my campus life, I worked in a family business running a restaurant for nearly three years in the industry doing market research, financial analysis and marketing and sales. I brought these varied skills to entrepreneurs and started working in events for almost 10 years. After that, I kept doing the occasional business and projects.
Being the industrious type, I immediately began to seek out projects to work on to keep myself busy. I tried different types of business (blogging, Printing services, and advertising), but finances and funding was a problem.
I returned to work for an events company for a month, but I didn’t like it. After having worked for myself, I had a difficult time working for anyone else. Perhaps, it was the distaste of authority or as I like to call out the “inefficiency” of organizations, but I was not a happy camper during these times.
day I decided to wear multiple hats until I let the world build my own dream.
What I need to do is to be disciplined, keep daydreaming, thinking outside the box and reading between the lines. I’m not smarter than the rest of the world, but I put much effort every day to become a better version of who I was yesterday. But for every success, there is a price, you need to sacrifice something. I did.
What exactly does One-Up Supplies do?
What inspired you to start the company?
Steam Cleaning - clean, disinfect, sanitize, de-grease, deodorize any surface, and chemical freeze.
In the real world, you either become an entrepreneur, or you work for one. On that
Using a combination of heat and high pressure, steam penetrates deep into surface pores, eliminating dirt, grease, residue, mold bacteria, viruses and germs without relying on harsh chemicals. It even
When I was employed, I realized the only thing I was doing was actually building others’ dreams. I had a steady fixed income each month; that’s great when you start a career, but I’m a dreamer and visionary, and I always knew I was destined for something great. I halted for a second to understand how the world works, and it was time to reverse the equation.
Steam cleaning is your eco-friendly answer to all kinds of residential and commercial cleaning tasks. Turning simple tap water into a superior cleaning agent, steam cleaning sanitizes and disinfects a variety of surfaces as well as fabrics at the same time.
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Africa 22 Youngprenuer
it balances the scientific principles of airflow, vacuum lift, water temperature and water pressure. When this technology is combined with quality cleaning solutions we are able to clean your fabrics deeper and more thoroughly. Without boring you with the details, this combined technology enables us to give you the very best job money can buy…and it dries faster too!
Any challenges faced?
Cash, Borrowing, and Resource Management. Cash is King ! We’ve all heard this maxim and it is truer today than ever before. Getting the cash to buy the machines was not easy but with a lot of convincing friends and family, some helped me with a soft loan to source for the machines, and agreed to be paying every month.
Integrity in finding the right staff - Finding the right staff and personality, retaining them, and ensuring they buy into the vision of the business. takes care of the chemical films in your home left behind by other inferior cleaning products.
The cleaning power of steam yields endless possibilities. Completely natural, steam lifts heavy stains from fabric, dislodges incrusted dirt, melts away grease or grime, kills molds, mildew and even exterminates bedbugs. A steam cleaner is everything you’ll ever need to efficiently and effectively clean anything you can think of, turning time consuming chores into trivial cleaning tasks. Surface Preparation - Harnessing unique skills, we prep and cure every possible surface for optimum professional works. Nano Coating - Seamless application on every possible surface, for durability, germ, and water proofing. Nano coating or nano sealing is coating of an application where nano structures build a consistent network of molecules on a surface that make it super-hydrophobic or super-hydrophilic. This means that the surfaces are sealed and water-repellent.
Your target market?
Health Care - Saturated dry steam machines satisfy the new medical www.destinafrica.co.ke
program, of safeguarding people and the environment and preventing the spread of harmful diseases.
Hospitality - Hotel accommodations, residences, health resorts and all types of small and large tourism facilities have particular needs concerning sanitizing and hygiene. Spa & Gyms - Healthcare centers and spas are resorts with particular requirements, with a daily flow of customers and damp environments at high temperatures that favor the development and proliferation of bacteria and moulds. Others include education (child day care, kindergarten and nursery) and cars and transportation
Your competitive edge?
By providing environmentally friendly services and cleaning with drastic reduction of chemicals free environment and adopting steam vapour based cleaning processes that reduces water waste, and eliminate hazards.
Our Cleaning System balances Science and Physics - Our equipment is considered to be some of the best in the industry because
In the Cleaning business, I get visit many homes that have fantastic stuff and, if you have an employee who is a thief, you will get a bad reputation or you will not get return clients.
Increased selection and competition - It’s never been easier to start a business. Gone are the days when it took weeks, months, and a myriad of forms to get your business started. Now if you can buy a domain name and register your business online, you’re in business. However, staying in business is a much more complicated matter.
Road ahead for One-Up Supplies?
To perform cleaning services with skill, honesty, and integrity in order to provide the client with the highest degree of professional service possible. Excellence in cleaning service is our primary goal, achieved through education, experience and a willingness to go the extra mile to achieve 100% client satisfaction.
Our main focus is Green cleaning for the “health & maintenance” of your homes and business. To remove gritty soil, allergens, bacteria and contaminants, thus improving the indoor air quality of your home or business as well as adding years of longevity to your carpets and upholstered furniture.
Rising From The Ashes Starting off as a driver, Saeed Abdirahman rose to become the CEO of Sidoman Investments Ltd By Alex Nyamu
There’s no easy route to success. It takes vision, hard work, patience and determination tics services available for everyone, from small traders to large corporations. In the past, third party logistics companies only focused on large corporations with deep pockets. Sidoman however strives to be accessible to all.
“We are also largely driven by technology and ensure we stay ahead of the rest as far as trends in operations are concerned.”
Saeed Abdirahman, CEO, Sidoman Investments Ltd.
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hen Saeed Sheikh Abdirahman moved to Mombasa from his Mandera home immediately after finishing college, he had one thing in mind – starting a transport and logistics company. “I started off as a driver. I lived in a single room, not far from where I worked, and often walked to and from the office instead of using matatus in order to save,” he says. After working for several months as a driver, Mr Saeed quit his job and started working for a shipping and logistics firm at the Port of Mombasa. “My discipline in saving was the most vital stepping stone towards the success of my business.” “I saved consistently for three years. I denied myself the luxuries most of my age
mates enjoyed. I set aside Ksh 8,000 to Ksh10, 000 every month from 2007. By the end of 2009, I had saved Ksh300, 000 which I used to register my company,” he reveals. He started a shipping and logistics firm Sidoman Investments Limited - because that was the line of business he understood. “I was driven by my passion for logistics and the burning drive to earn a good living and not only survive, but live life and thrive.” Today, the 36 years’ old also owns the Mtwapa Coast Breeze Hotel and a water bottling company. The two-star hotel is based in Kilifi County.
Sidoman Investment The company prides itself in making logis-
The company offers a range of services including Freight (Road, air and sea), charter brokerage, packing and removal, warehousing and clearing and forwarding. Sidoman Investment currently operates mainly in the East African region. “We hope to grow to an international integrated logistics and shipping company in the magnitude of Maersk and China Global,” he says Running the business has however not been a walk in the park. Mr Saeed says that the major challenge they face in shipping and transportation is the adverse effects of stringent and unfair government policies and high taxation. Furthermore, there is stiff competition in the industry.
Advice for entrepreneurs There’s no easy route to success. It takes vision, hard work, patience and determination. It’s easy to give up the path of an entrepreneur and opt for employment, but sticking to it and overcoming the challenges as they come eventually bears fruit. “I am enjoying those fruits right now, believe me, it is worth the difficult journey.”
The Mombasa based businessman is happily married and a proud father of four. Apart from being a businessman and a family man, he is also passionate about charity and bettering the community around him. www.destinafrica.co.ke
Africa 24 Inspiring Woman
Space And Style: Quality is Our Value Proposition
Winnie Ngumi, CEO, Space and Style Ltd.
The all-round building products firm is shifting from just focusing on distribution to manufacturing while maintaining consistency and product quality
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here are many building products solution providers in Kenya, and then there is Space and Style Ltd. Established 16 years ago, the company has grown by leaps and bounds over the years to become a one-stop shop specialized in building materials.
The story of this company offers the inspiration that women can be successful in male dominated industries; with the right mindset, being consistent and giving your business time to grow. “I am a firm believer that we should all fight for our space and be given jobs on merit. I do not position my business as a woman owned business rather, a business that can compete in the market place fairly and succeed based on the value we give our customers,” says Winnie Ngumi, CEO, Space and Style Ltd.
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By Jennifer Nyawira Space and Style’s history dates back to 2002, when Ms. Ngumi decided to start the company, with a business partner after completing her Bachelor’s degree in Architecture. She knew she wanted to run a business while still in school. “I never worked as an architect. I did my six years of university study and after completing, I did the usual odd jobs for a while,” she says.
“Later on, I came across the Decra roofing product. It was a unique solution unknown in the Kenyan market. After talking to a few architects, it sounded like a good product that would fill a gap in roofing requirements in Kenya. People started drawing interest; I found the suppliers, engaged them and they were also interested in coming to our market. It was a good partnership,” Ms. Ngumi reveals.
Over time, the enterprising entrepreneur has evolved into a building products specialist, providing solutions to the builders or architects to assist them achieve what they design.
For her, growing the business to what it is today is a combination of many things. She was lucky to get good and reliable suppliers from the beginning, as well as support from her peers. Furthermore, maintaining consistency, self-development and reinvesting proceeds in the business played a major role.
Pacesetters Space and Style started off as the exclusive supplier of Decra roofing systems. According to the Managing Director, the Company was the first to introduce this roofing solution into the market. “Prior to us coming
into the market, roofs covers were mainly made from concrete and clay tiles. We therefore came in as an alternative roofing solution.” “We try to keep ahead in order to become leaders. We are always the ones introducing the new products solutions.”
The company imports Decra roofing products from New Zealand, something that Ms. Ngumi says was not easy at first given the importing logistics involved and supply chain demands. Diversification After growing the Decra roofing products for eight years, the company decided to diversify. “We brought other products on board that complement the roof such as Frametech steel structures and frames, a pre-engineered structural steel solution that we developed and manufacture locally,” she offers.
Today, the now fully fledged building products solutions firm offers a range of products including Flowplumb drainage systems, Rainwater gutter systems, Fortiza roofing systems, unique floor laminates, Fiber cement ceilings, eaves and fascia boards, APP flat roof waterproofing membranes and Roofcolor bituminous roofing shingles among others.
And it is still aiming higher. Plans are underway to start manufacturing locally in line with the current Big 4 Agenda. “We are setting up and we will be commissioning the factory in a month’s time.” The idea is to do most of the processes locally in order to pass on to the customers a competitive price, while maintaining product quality. Manufacturing of the roofing tiles is actually the biggest project the company has done so far and she believes in more transformation going forward. “As Space and Style, we endeavor to offer high quality and unique solutions – quality is our value proposition – and we don’t take short-cuts on costs or specifications,” says Ms. Ngumi. “That is to ensure clients derive the right quality from the product they get from us’ she adds.
Training In 2010, Space and Style started a fully self-
funded ‘Fundi Maalum’ training program focusing on training in installation techniques and product knowledge. “So far, we have trained thousands of ‘Fundi Maalums’ to enable them install our products properly to alleviate installation complaints from our customers and raise the standards of construction,” she says. Over time, the programme has grown to include training on safety standards and financial literacy.
“Any time we launch a new product; we carry out a year of training in different towns across the country. These are however not our employees, but people who grow their own businesses from the benefits they derive from the training.” This has really made the company stand out from the rest.” Recognition Space and Style has received a lot of recognition, especially from its stakeholders. It has also been the lead distributer of roofing solutions for a couple of years. The company achieved Authorized Economic Operator (AEO) status a while back, meaning that it has been recognized by the Kenyan Government as working above board in its processes and practices.
Furthermore, it has been a long-time member of Kenya National Chamber of Commerce and Industry, Kenya Association of Manufacturers (KAM), and Kenya Private Sector Alliance (KEPSA), besides being ISO certified.
According to the Managing Director, the firm has mainly been recognized for its distribution, processes and belief in quality. It has therefore been investing in order to improve. “As the company grows, you find you have challenges related to the growth; so you have to really work on your processes and develop strategic partnerships.” In spite of these milestones, Ms. Ngumi says growing the business to what it is today has not been easy. It takes a lot of time and perseverance to grow a business. Besides, lack of capital is a major challenge for many businesses, especially start-ups. She however explains that if you have a good business model, capital is not necessarily a challenge.
A difficult business environment such as unfavorable policies, counterfeit products, challenges in forecasting the sometimes volatile market and an uneven playing field, are other hurdles affecting the building and construction space.
The growth of the industry is also hindered by the archaic by-laws. These, according to Winnie, should be amended since they do not allow for the rapid adoption of affordable housing construction using alternative technologies. Nonetheless, what gives Ms. Ngumi the most satisfaction is the impact they are creating - especially on the roofs.
On starting a business The Managing Director says that although there are no two businesses that start up in the same manner, there are some basic principles which every entrepreneur should put in into consideration. Having a good product, creating strategic partnerships, keeping quality and consistency, giving your business time to grow and attracting and keeping customers are some of the key principles. She advises entrepreneurs not to give up despite extreme challenges. “Whatever line of business you start, hang in there and make it work” is her advice. “We are in a growing economy; so any business you start today should essentially work if you give it time, remain consistent and avoid taking shortcuts. Businesses grow organically, and this takes time.” Finally, she closes by saying, “Entrepreneurs should not copycat other people’s businesses. All businesses are unique and very challenging. Do a business that you understand and are passionate about so that you won’t give up along the way.”
Winnie Ngumi at a glance
A trained architect/ building products specialist Chairs the Alumni Network for Centre for Corporate Governance (CCG) Vice-chair Building, Mining and Construction sector, KAM Does entrepreneurship and mentorship engagements Student, Stanford SEED Business Transformation Program www.destinafrica.co.ke
Africa 26 Actuarial
Darshan Ruparelia, Founder, Ruparelia Consultants Limited (RCL).
RCL Named Fund Actuary of the Year at the Pension Awards Exceptional client service was the major contribution to this achievement By RCL
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ounded in 2014 by Darshan Ruparelia, Ruparelia Consultants Limited (RCL) was the recipient of the 2017 fund actuary of the year award. The awards, which draws participants from the service providers, individual schemes, umbrella schemes, occupational schemes, trustees and approved issuers, seeks to recognize stakeholder’s excellence in innovation and service provision to improve the outcomes of both pension funds and members. Destin Africa had a chat with one of the directors about the company, what contributed to the win and expectations going forward.
Tell us more about RCL? RCL was established following the relocation of Darshan from the United Kingdom (UK) to Kenya. Darshan started the consultancy with support from fellow actuary Mark Stephenson who is based in the UK. Darshan practiced as a consulting actuary in the UK for 9 years primarily advising public sector and private sector occupational pension schemes. Both Darshan and Mark are Fellows of the Institute & Faculty of Actuaries (of the UK). Darshan is also a Fellow of the Actuarial Society of Kenya. What are some of your service offering? We provide actuarial, financial modelling and risk management advice to governments and governmental organizations, public and private pension scheme trustees and sponsors, (re) insurance companies, not-for-profit organizations, and SMEs and large-scale corporations.
Why RCL? Our team provides personalized service to each of our clients and can handle complex assignments under tight timelines set by clients and tailored specifically to their needs. We are friendly and professional, committed to meeting each client’s needs by performing quality work at an affordable fee.
What do you think led RCL to win the Fund Actuary of the Year in 2017? Exceptional client service. In our field there is a serious challenge in communicating complex solutions that need to be understood and appreciated by the
The key issue that we face on a regular basis is to educate and encourage stakeholders on the benefits of seeking independent and reliable professional advice decision-makers or end-users. At RCL, we pride ourselves in communicating effectively, both in writing and verbally.
Our clients often remark on the clarity and attention to detail of our written reports, and the informative nature of our live presentations. We tailor each project to the needs of the client and approach each analysis without bias toward a particular result. How was the experience? It was a humbling experience to win the award as we are still a relatively new consultancy in the market. It has also motivated our team to continue providing excellent service to our clients.
What are some of your other achievements? Our other major achievements include being considered by the Rwanda Social Security Board for whom, as part of a joint venture, RCL carried out an actuarial valuation of their pension and occupational hazards scheme, which has around one million members. We are also working with The Ministry of Social Security, National Solidarity and Environment and Sustainable Development (Social Security Division) under the Mauritius government for whom, as part of a joint venture, RCL is carrying out an actuarial valuation of their National Pensions Fund, National Saving Funds & Basic Pensions which has around a quarter of a million members.
Can you tell us more about your Corporate Social Responsibility activities? At RCL, we believe that our motivation comes from providing for others. We organise and take part in a range of charities. For example, the RCL team was involved in distributing food and water supplies to drought affected regions of Marafa and LangoBaya in December 2016. We also regularly serve food and distribute gifts to Tumaini Children’s Home, the Port Reitz School and Mombasa Children’s Home. Our main aim is to inspire these children to have the same motivation and determination to succeed as we expect from our own consultants.
Can you comment about the current trends in the industry you operate in? There are various changes or consultations that are happening in the pensions’ market in Kenya – such as the need for more flexible benefits that better meet the needs of members, more diversified investment opportunities including investments in infrastructure projects through PublicPrivate Partnerships and the need for more powers to Trustees or Managers of pension schemes to help them protect the interests of members. The biggest challenge, though, is how to increase pension savings in the Kenyan (and East African) market and to encourage the informal sector to save for their future. Insurance penetration in the insurance industry is also a “hot-topic” as it the use of data analytics to design insurance products that meets the specific needs of policyholders and which helps with efficiencies in claims management.
Road ahead for the company? Our aim is to build on the strong foundation that we already have in the East-African region as well as explore how we can grow our business in other SubSaharan territories. The key issue that we face on a regular basis is to educate and encourage stakeholders on the benefits of seeking independent and reliable professional advice. From seeking such advice stakeholders would be expected to be better placed and informed before making appropriate decisions.
www.destinafrica.co.ke
Africa 28 Financing
collections and that allows us managing our human resources wisely.
Watu Credit Finds Niche in Asset Financing The non-bank finance company is currently financing motorbikes and three wheelers, thus empowering the riders to become owners of their work asset By Andris Kaneps
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atu Credit Limited is a fast growing non-bank finance company. Headquartered in Mombasa, Kenya, Watu Credit aims to become the leading East African provider of a broad set of inclusive financial products, delivered in a fast, efficient and professional manner. The Company commenced its operations in October 2015, with the clear vision to be the best in class provider of short and medium-term loan products. The company prides itself in offering fully cash-less services for loan disbursement and collection, as well as 24-hour access for clients to their account balances. We are currently a team of more than 100 highly motivated staff members.
Product offering Watu Credit offers a range of products like asset financing (motorcycles and threewheelers) and group lending products (short-term and business loans). The latter mainly targets women groups in coastal Kenya region. However, our business focus is on asset financing market. We are actively engaging in financing motorbikes and three
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wheelers, thus empowering the riders to become owners of their work asset. This is a large market for us and we have already expanded geographically beyond coastal Kenya and are present both in Central and Western Kenya. We see this is a market with a huge potential that we are yet to cover completely. So far, the company has presence in Nairobi, Malindi, Nakuru, and Mombasa (Town) with Eldoret coming soon.
Why Watu Credit? Watu Credit main advantage is speed and quality of service. We have tailored our business model on what the market in general was lacking. We offer clients unparalleled service for asset financing segment – from time of walk in to getting your asset it can be as little as a couple of hours. Obviously this would not be possible without effective processes and modern technologies. We have completely eliminated any cash transactions and only rely on electronic money transfers, almost exclusively, Mpesa. This alone eliminates layers of inefficient operations, improves service speed, quality and accuracy. But more than that we have developed a number of our own systems that contribute to process automation both for disbursals and
Industry trends When we started offering asset financing product, there were no many players in the industry that were actively involved in this line of business. In many ways that can be explained that the asset financing is a very labour intensive product to manage and one that has multiple additional components that have to be taken into account (asset insurance, for example). We see that there is competition springing up in the market by companies that has followed more or less our business model. And there is nothing secretive in the model and as it works, it is more how you implement it. At the end of the day it is not only interest rate that counts but the whole package like client experience and speed. We are not complacent however, and do understand that this is ever evolving sector and to stay competitive, we always have to be one step ahead of our competitors. This is why we are developing new products exclusively for our existing customers and offering loyalty benefits for our long term clients. We can only expect this segment – almost personalized financial services - to further augment.
Future plans We are certainly a company that is still developing and as any business to be on top of the game, you have to constantly re-invent yourself. We are working to strengthen our current market position but looking even further to develop new and interesting product lines, new locations and target the underserved market needs. Likewise we are continuing to maintain relationships with our existing clients and carefully listening to their needs and preferences which very often lead to new and innovative services that we can offer. Andris Kaneps is a director at Watu Credit
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Africa 30 Post Retirement Healthcare
Leading From the Front with Innovative Products The development of ANAYA post-retirement health care fund by Enwealth Financial Services shows the firm’s commitment to innovation to fill existing gaps in the market By Jennifer Nyawira summing up retirees’ plight of enjoy dignified life in retirement as they tend to erode their financial bedrock.
Alex Malele Ndalila, Assistant Manager Business Development, Enwealth Financial Services Ltd.
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s per 2013 Kenya Household Health Expenditure and Utilization survey by the Ministry of Health, out of 100 hospitalizations, about 35 of them are of retirees. In the same perspective, for every penny spent on hospitalization, Kshs. 35 is spent by retirees. This is as a result of retirees’ susceptibility to various chronic health risks such as hypertension, arthritis and many more that requires constant care and costly to manage. Due to these inherent health challenges, the elderlies haven’t been getting much needed attention from the traditional mainstream insurance companies, as they are termed as high-risk individuals. Consequently, this has often made them relying on out-of-pocket spending to fund for their healthcare need eventually www.destinafrica.co.ke
This also has a social-economic impact on the nation capacity to mobilize internal financial resources that can be channeled towards infrastructural development as retirees with no financial means are left to rely on their social networks to help them pay for their cost of seeking healthcare exacerbating the financial dependency crisis in the country.
In tandem with our vision of ensuring all Kenyans have a dignified retirement, these challenges have necessitated Enwealth Financial Services Ltd (Enwealth) a leading and innovative provider of social security financial services to fill the gap through pioneering innovation of Anaya postRetirement health care fund, a product that enables retirees to access quality healthcare in retirement.
Further, the innovation is supported by the shift in the social security landscape most evidently changes in the legislative framework through amendment of Retirement Benefits Authority Act by providing guidelines to allow members of retirement savings schemes to pre-fund their healthcare insurance benefits that can be enjoyed at Retirement. Why Anaya? According to recently conducted research by Enwealth Financial Services Ltd in conjunction with Strathmore University dubbed Retirement Well-Being: A Kenyan Perspective, access to quality healthcare is of massive financial concern to many retirees due to it impact on their financial soundness as it constitutes majority
of old-age expenditure. Further, its of outmost importance as its an enabler of their retirement well-being resulting to longevity.
This is further emphasized by government effort to integrate access to affordable and quality healthcare to all Kenyans in its core deliverables to the nation through universal healthcare initiative under the Big Four Agenda. Therefore, Anaya seeks to address issues around the healthcare access by retirees through unlocking of the bottlenecks that haven’t allowing them to realize medical care before.
This is a first of its kind initiative made possible through a partnership between Enwealth, APA Insurance and Apollo Asset Managers that allow members to make goal-based savings while working into the pooled fund purposely for their healthcare needs. The funds are then invested according to the investment guideline of retirement benefits. Upon retirement, member seizes from making further contributions and
Age 60 The need for this infrastructural development is underlined by the fact that by 2030, it is projected over 10% of our population shall be above age 60.
enrolled to a selected and funded for health insurance plan. The accumulated fund is then drawn annually to gather for members medical insurance premium for life subsequently, enabling savers to access affordable premium financed medical care through accumulated savings and investment income earned over time.
Being a long-term savings plan, Anaya members are able to enjoy tax incentives on their contributions and investment income as stipulated in the retirement benefit regulation framework. This plays a fundamental role in financial wellness of the savers as efficient tax management is among the key tenets of maximizing wealth creation and building of a secure financial future. We also offer members flexible and tailormade bouquet of benefits options ranging from inpatient cover of Kshs 5 Million to Kshs 500,000 that one can choose from and save depending on individual financial capability. Outpatient cover benefits are also imbedded within the inpatient benefits modules. As a result of our innovation for as little as Kshs 2,000 one is able to save for his/ her healthcare freedom in retirement.
We further allow agility that facilitate savers to transition from one plan to another as well as make contribution to the fund on various payment plans such as monthly, quarterly, semi-annually and annually as well one-off lumpsum deposit. On death of the saver, the accumulated savings are availed to the nominated beneficiaries. The beneficiaries may opt to retain the savings in the pooled fund until retirement and realize the benefits promised to the contributor. In the event the contributor was already enjoying the medical benefits prior to death, the beneficiary can choose to continue enjoying the same or recall the money in demise kitty.
Similarly, retirees who may have missed the opportunity to pre-fund are also allow to enjoy care as premium-payers. Through the infrastructure, retirees together with their families are able to purchase medical insurance renewable annually based on the range of available cover options ultimately
helping them to enjoy quality healthcare services from over 400 healthcare providers locally and abroad.
Saving culture in Kenya The savings culture in Kenya is generally low. This is highlighted by recent report by the Capital Markets Authority (CMA). CMA survey alludes that countries Gross Savings Rate has dropped by almost a half in 10 years from 11.7 per cent in 2007 to 6.2 per cent in 2018. This is as a result of behavioral penchant for short-term as opposed to appreciation of long term saving vehicles.
Most remarkably, this has had a knock-on impact on the country to realize potential and benefits of long-term saving. This has been attributed to the inadequacy of necessary financial literacy that should be meant to inculcate saving culture in the country.
To bridge the gap, Enwealth is providing financial literacy to Kenyans in partnership with RBA and other stakeholders. Our financial literacy training focuses on change of mindset to encourage savings, investment and build skills and capacity in practical application areas such as entrepreneurship and agribusiness.
We believe this deliberate effort to enhance financial literacy reinforced by saving enabling infrastructural development and innovation such as Anaya and our other products i.e. Enwealth Personal Plan that allows both formal and informal sectors to save for their financial freedom in retirement seeks to provide a sustainable remedy that will facilitate a secure financial future for the country. The need for this infrastructural development is underlined by the fact that by 2030, it is projected over 10% of our population shall be above age 60. As libertarian thinkers have it, in order to support the government initiative of providing social-economic services to the nation, it is fundamental for the citizens to take an active participatory role of saving with a foresighted objective of building a better and a secure financial future that ultimately leading to creation of the reliable social security financial services system in the country.
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Africa 32 Real Estate
By Reuben Kimani
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t is the desire of every Kenyan to own land or any long-term asset, however, there is always the inner fear of beginning the process. The real estate sector has been characterized by fraudulent sellers who purport to sell land and they never issue title deeds as proof of ownership, worse still they do not present legally binding documents to investors to seal any transaction made. Therefore, when a buyer notices they were conned they have no legal document to claim for damages caused. The buyers to an extent lack information of the legal documents involved in the land transfer and this has caused many investors to suffer loss. There are various documents involved in land transfer and each has its unique role in the purchase process especially land.
1. Letter of Offer A letter of offer is a single paged document that expresses intention by the buyer who wants to purchase a property and spells out the binding terms and conditions for both the seller and the buyer. www.destinafrica.co.ke
Documents Involved in Land Transfer and Their Importance
Ensure you request for these documents in your next land purchase, they will be availed to you by a Relationship Manager
Details contained include the name of the seller, buyer, lawyer overseeing the transaction, property identification number, the payment terms either cash or installment and a slot to fill in next of kin details. The buyer is required to sign this document in duplicate. One copy is retained by the seller and the other one belongs to the buyer. This is the first document a buyer signs after selecting a plot and paying the booking fee. Importance: A letter of offer eliminates the possibility of two parties buying the same piece of land.
2. Sale agreement A sale agreement is a legal contract that obligates a buyer to buy and a seller to sell a product and in this case land. Contents of a sale agreement i. Identity of the parties- The name as it appears on the identity card, ID/ Passport number and email address
ii. Identity and description of the property under sale- this includes the legal description of the land, the plot number, physical location and the condition of the property either vacant or occupied iii. The purchase price of the property and payment of the purchase price
iv. General and special conditions- these are the conditions that surround the property on sale including who is supposed to pay stamp duty, legal fees and the completion period. Importance of a sale agreement: The sales agreement fully protects the rights and interests of the buyer and the seller because if one party fails to adhere to the contract the other party can take legal action to recover the damages caused. The sales agreement is filled in triplicate one for the vendor, one for the purchaser, one for the lawyer/ legal advisor overseeing the transaction.
3. Title transfer document This is a document that is involved in transfer of a title deed from the name of the seller to the buyer’s name. This document is filled in when payment of a property is completed. A title transfer is attached with the below details before submission to the Lands Registry for the actual transfer. i. Approved consent for sale from the Lands Control Board. ii. Stamp duty slip as a proof of paying government levies.
iii. Copies of ID number of the buyer and of two directors of the investment company iv. KRA Pin Certificate of the buyer and of the investment company
v. Passport photos of the buyer and of two directors of the investment company vi. Certificate of Incorporation of the investment company
The title transfer document is filled in 3 copies; one copy is filed at the Land Registry, the second at the investment company and the third belongs to the buyer.
Importance of a title transfer form- this document is the legal proof of transfer of the title and can be used when tracing the history of a property in the Lands Registry.
In conclusion, every investor should have these three documents at the back of their minds to ensure the property they have purchased belongs to them legally. Ensure you request for these documents in your next land purchase, they will be availed to you by a Relationship Manager. If you are in diaspora an offer letter is sent to you via email address while a sales agreement and a title transfer form will be sent to you via your preferred courier service. www.destinafrica.co.ke
Africa 34 Hospitality
By Hasnain Noorani
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ach new technological innovation is making the world we live in increasingly smaller and smaller. It has indeed revolutionized the way we plan our vacations. There can only be a few areas that have been transformed by technology quite the same way as travel. In the last two decades, we have seen technology impacting the travel industry more than it has in the former 40 years. No one can imagine travelling without access to Google Maps for instance. Technology made it much more affordable and comfortable, can access virtually anything at our fingertips. Catalyzed by the gigantic power of the internet of things, customer expectations are growing. This is true within every industry and in none more so than the hospitality industry. A sector where clients’ expectations for a fantastic experience run particularly high, technology may just provide the means for overcoming this challenge. Technology for consumers means an easy life and our appetite for this lifestyle is insatiable. With every new app or connected device, we shift the goal posts for the-art-of-thepossible and, in turn, we raise customer expectations.
Rapid advancement in technology is twisting the way in which the hospitality industry conducts its business. Some of the trends in industry are leading to great improvements and savings for the industry while some are changing how hotel owners plan their facilities, management structure and staffing requirements. www.destinafrica.co.ke
Hospitality Industry is Not Exempt From the Need to Innovate
A massive 76 per cent of travellers refer to these reviews to gain better insights into the state of different hotels
76 %
The way we communicate and find information has rapidly changed. In earlier days, traditional media was used as the only platform to reach an audience. Technology has the power to target consumers on an individual scale and process requests in very little time. As a result, it has been reshaping the marketing and customer experience landscape in which hotels operate.
Improvement in technology has opened customers to a much wider range of options when it comes to finding accommodation, and thus have significantly increased competition within the hotel industry. Comparison sites, such as JumiaTravel.com, are allowing consumers to quickly find the best accommodation to suit their needs - whether that means it’s more affordable, in an ideal location, or has certain amenities. The inclusion of independent reviews on comparison websites such as Trip Advisor allows users globally to book with greater confidence, according to research by Deloitte and Facebook. A massive 76 per cent of travellers refer to these reviews to gain better insights into the state of different hotels. In order to be considered relevant by consumers, hotels need to develop an active online presence. This involves having a digital marketing department that aggressively markets online on the different social media platforms.
Digital disruption is creating a more competitive market for those offering accommodation. So how can technology be used to improve customer experience in hotels to help them compete with the rise of home sharing?
Local hotel chains like PrideInn Hotels are opting to start the development of a technological solution for their own venues and hotels. This will be an app that is to be integrated with their hotel systems, and allows guests to book accommodation, check in / check out, order room service, communicate with fellow guests or even the hotel staff. The integration of smart technology with hotel rooms and services offers guests a more interactive and luxurious experience as they enjoy their stay. The writer is the Managing Director and Founder of PrideInn Group of Hotels
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Africa 36 Finance Management
By Michael Armstrong
E
Why a Culture of Trust is Needed for Effective Public Finance Management
ffective public financial management is essential for economic success, and at its core is the need to build and maintain trust. Trust grows out of a culture of rigorous independent scrutiny which enables citizens to see that the decisions their leaders take are in the public interest. According to ICAEW’s recent report on building trust in public finances, a culture of trust is pegged to a number of factors and elements.
Trust culture Strong public financial management requires transparency in how resources are raised, managed and used, together with accountability, to instil confidence and promote continuous improvement. For example, in Uganda, the budget information is usually uploaded on a website. This promotes transparency and accountability by showing detailed information on how resources are allocated and used, plus performance indicators from national down to parish level. Citizens and other stakeholders can provide feedback on service delivery in their local areas and report suspected corruption. An SMS and telephone service is also available to improve access for marginalized communities.
Strong governance and controls will ensure public officials are held accountable for the stewardship of public money, with feedback and sanctions when behaviour falls short of expectations. These also provide assurance that the system is operating as intended. www.destinafrica.co.ke
Equally, professional accountancy bodies have a valuable role to play in providing the frameworks and expertise to help government develop effective public financial management
A wide range of professional skills are needed to ensure government has the capability to undertake the financial management of large public bodies in a complex stakeholder environment. Clear guidance on ethics will help public servants in situations of conflict. It is vital that robust systems and processes are underpinned by core accounting disciplines to ensure financial information is relevant, reliable, comprehensive, complete, understandable and produced on a timely basis.
A key example of how strong systems and processes can be implemented, lies in the ‘four-eyes’ method used by the European Commission. The concept entails separating the initiation and verification of transactions so that an action must be approved by at least two people. Good financial management practices will include clearly defined responsibilities, segregation of duties, adherence to documented procedures and controls, regular management review, and reconciliation of account balances.
Independent audits give citizens confidence that the numbers presented by government are accurate. Internal audits should have a high degree of operational independence, while external audits should have constitutional safeguards that ensure their independence from the executive. Social dimension It is also vital to uphold the ‘social contract’. Citizens must be confident that they are protected by the law and that public institutions and servants will act in accordance with it. Public institutions with operational independence from political control are more likely to be trusted to act in the public interest. A well informed population is far more likely to be confident about investing for the future. This means both providing appropriate information in ways that are
accessible and easy to understand, and educating citizens as well as inviting them to participate in decision making.
Effective public financial management requires that decision makers, citizens and other stakeholders, are all able to ‘follow the money’ to see how taxes were raised, why decisions to spend it were made, how the money was actually spent and what was bought. Where government plans and activities are measured against expected outputs and outcomes, citizens and other stakeholders will be able to judge the performance of government. This in turn provides the basis for feedback and continuous improvement mechanisms. For the public to believe that public officials will do the right thing, a range of controls to promote integrity and ethical behaviour and to tackle fraud and corruption are required. Most importantly, the public must believe that individuals will be held responsible for their actions, no matter who they are. A climate for investment is created when investors believe a state is stable, well run and that political and fiscal risks will be managed effectively. A world of strong economies depends on trust in the public finances. Public servants spend other people’s money and citizens and investors need to have confidence that those funds will be properly and effectively used. Governments have a duty to demonstrate that they deserve that trust.
Equally, professional accountancy bodies have a valuable role to play in providing the frameworks and expertise to help government develop effective public financial management. This includes both technical accounting and management know-how and the strong ethical standards expected of professional accountants. Michael Armstrong is the FCA and ICAEW Regional Director for Middle East, Africa and South Asia
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Africa 38 Fitness
By Dr. Sikolia Wanyonyi & Professor Marleen Temmerman
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Antenatal Care Critical in Detecting and Correcting Foetal Abnormalities During Pregnancy
oetal abnormalities can negatively affect the physical or mental development of the child. In some cases, death may occur either in the womb, immediately after birth, or later on in life. Interestingly, up to 90% of foetal anomalies can be detected - even early in pregnancy through use of ultrasound scans, blood tests and amniotic fluid screening where necessary. Once pregnancy is confirmed, a woman should seek antenatal care within the first two to three months of pregnancy. Several prenatal tests are then carried out to determine the presence of infection, or other conditions that may be harmful to the fetus, or the woman.
Besides these tests, the gestational age can be accurately determined in the first trimester. The scan also offers the opportunity to determine if there is more than one baby and if this is the case, whether they share a placenta, or not. Most abnormalities of the brain, spinal cord, abdomen and kidneys can be seen at this stage. In good hands a handful of heart problems could also be picked up. The anomaly scan done at around 20 weeks
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Some of the risk factors for having a baby with either genetic, or structural anomalies include advanced maternal age usually over 40 years, genetic disorders within the family, excessive alcohol consumption, smoking, or drug abuse during pregnancy. thereafter identifies most of the major structural abnormalities. However, it must be remembered that even in the most experienced and good hands, not all anomalies can be seen and this may be picked up either at birth or on autopsy in the event of death. Genetic anomalies if not associated with obvious defects can only be diagnosed through foetal testing and not ultrasound. Birth defects are classified as structural and developmental. Structural defects can affect any part of the body and can either be lethal, or compatible with life. They include but not limited to, heart defect, cleft lip, or excessive fluid in the brain, clubfoot and spinal bifida which is the abnormal development of the spinal cord. Advancements in medicine have made it possible to treat and correct these deformities through medications, surgeries and proper home care. Functional, or developmental birth defects may not exhibit any obvious anomaly but the baby can as some may be genetic. Examples include; Down syndrome which causes delay in physical and mental development, sickle cell disease where the red blood cells become mis-shapen (crescent shaped) and cystic fibrosis, a condition that damages the lungs and digestive system. These often cause limited intelligence, or development of various body systems.
Once an abnormality is identified, parents should be counselled regarding the nature of the deformity and the treatment options available either in pregnancy, or after birth. They should also be informed of the special needs, or requirement the child may have
40 years in future. The parents may choose to carry on with the pregnancy despite the abnormality, or opt to terminate it.
Some of the risk factors for having a baby with either genetic, or structural anomalies include advanced maternal age usually over 40 years, genetic disorders within the family, excessive alcohol consumption, smoking, or drug abuse during pregnancy. Other factors include use of some medications prior to conception, or during early pregnancy that are harmful to the developing baby, lack of folic acid supplementation prior to conception, exposure to chemicals, toxins and radiations, viral infections, pre-existing medical conditions such as diabetes or epilepsy among others. Most abnormalities, especially those of the heart can benefit from immediate correction post delivery that could prevent death and result in normal healthy individuals.
Some such as spinal bifida and can be prevented with use of folic acid prior to conception. While others can be corrected either in the womb or after birth. It is therefore important that women should seek early prenatal screening and testing to detect these abnormalities if any and receive expert opinion on their pregnancies to avoid unnecessary unpleasant surprises at birth. Dr. Wanyonyi is a Consultant Obstetrician Gynaecologist and Foetal Medicine Specialist, while Professor Marleen Temmerman is the Chair Department Obstetrics and Gynaecology at Aga Khan University Hospital in Nairobi
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Africa
GREAT DRIVE
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motor
2018 HONDA HR-V
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Africa 42 GREAT DRIVE
S
mall crossovers like the 2018 Honda HR-V are the new economyclass commuters—and we’re fine with that. The HR-V prioritizes people over performance, frugality before fun. Carried over with only paint and wheel changes, the 2018 HR-V comes in LX, EX, and EX-L editions. Honda sells some HR-Vs with a 6-speed manual, but most go out the door with a continuously variable transmission (CVT). All-wheel drive costs extra, and only is offered on CVT-equipped models. Honda sets the HR-V apart from rivals like the Jeep Renegade with a curvy hatchback silhouette. It’s a playful shape with some swole fenders and tucked-away door handles that don’t entirely add up. The interior’s better: it’s a simple economy-car cabin, with better trim than the related Honda Fit. The HR-V’s performance is best seen through a ride-quality lens. Its 141-horsepower 4-cylinder doles out fair acceleration on city streets with only a driver aboard. Anything more and it feels taxed, despite paddle shift controls
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that give the driver access to pre-selected “gears.” Handling is benign, but moderately sized wheels and good tuning give the HR-V a smoother ride than its short wheelbase might indicate. Gas mileage, at up to 31 mpg combined, is excellent. The HR-V reigns over its class with a flip-folding rear seat that kicks up its bottom cushion. It’s not magic, it’s good engineering, and it gives the HR-V a tall load space right behind the front passengers. The rear seats fold the other way, too, and expose a big cargo bin of up to 58.8 cubic feet.
Styling Honda HR-V has a simple and effective interior. The HR-V gets a point above average for its spare and clean cabin. Honda would rather you think of the HR-V like some interesting mix of coupe and crossover. It stamps a big swoop into the HR-V’s side panels, tucks the rear door handles into the door frames, and drops the nose low like that on the Civic. At the same time, its fenders swell and its roof arches. Inside the HR-V has a tidy cabin devoid of the twin-screen clutter now on the way out of other Hondas. The dash has its
foibles, like the slim vents sliced across the dash in front of the passenger, a clear compromise for a low and open cockpit. The fit and finish are better than in the related Honda Fit, the layout is clean, and a big touchscreen glows at the center of the dash in most models; base versions have a less impressive 5.0-inch screen. The HR-V still has touchscreen controls and lacks a volume knob, so it can be tough to operate safely at speed.
Performance The Honda HR-V doesn’t offer much in the way of power, but it has a smooth ride. While the related Fit gets a 1.5-liter inline-4, the HR-V adds muscle in the form of a 1.8-liter inline-4. The no steroidal upgrade gives the crossover 141 horsepower and 127 pound-feet of torque. It’s still saddled with a taller and heavier body than the Fit, so both are in the 10-second 0-60 mph ballpark—feel free to drag-race them and report back with results.
Features The Honda HR-V has the usual economycar goods, but not much more.
Honda sells the HR-V as an LX, an EX, and as an EX-L. Each have a good selection of standard equipment and its infotainment system is fine, but the HR-V doesn’t offer much beyond those in the way of exceptional touches.
The HR-V’s absorbent ride feels much like the Fit, which is to say it’s better than a Chevy Trax or Jeep Renegade. Honda gets credit for the standard 17-inch wheels, while rivals’ bigger 18-inch wheels don’t really help ride quality on such short wheelbases.
The HR-V has a front strut and rear torsionbeam suspension that acquit themselves well in ride motion control. With relaxed steering, the HR-V doesn’t lack confidence on interesting roads, but if it’s top-drawer handling you want here, shop a Mazda CX-3. The HR-V’s trade-off is biased toward a calm ride, and it’s an agreeable choice for everyday driving. The HR-V’s steering is relaxed, the body motions are well-controlled and it doesn’t feel a bit brittle, even on terrible roads. Leave the track tuning and off-roading to others: this tall hatchback is intended for everyday driving.
Comfort & Quality Packaging rules: the Honda HR-V outpoints its rivals with its gymnastic rear seat. The HR-V may be the smallest crossover SUV in Honda’s lineup, but it’s jumbo-sized compared with trucklets like the Jeep Renegade and Fiat 500X.
It’s bigger and more useful, and also gets the flexibility idea better than rivals. The HR-V rides on a 102.8-inch wheelbase, and sits 169.1 inches long and 69.8 inches wide. Most models have 100.1 cubic feet of interior space; it’s 96.1 cubes on EX and EX-L models, which have a space-trimming sunroof.
Honda gets extra credit for fitting the HR-V with a nice grade of materials and ample storage. Though it’s related to the Fit hatchback, the HR-V feels a bit better in terms of cabin sound and trim quality, better too than the Jeep and Fiat and other small hatchback SUVs. The HR-V also makes do with a single touchscreen, not the dual-screen clutter of some other Hondas. We wish the USB ports were a little easier to access, but the HR-V’s steering-wheel audio controls keep smartphones at fingertip control.
Front-wheel drive LXs and EXs can be fitted with either a 6-speed manual transmission or a CVT, while the all-wheel-drive model is CVT-only. The EX-L is also available with front- or all-wheel drive, but it comes only with a CVT. All HR-V crossovers have power features, 17-inch wheels, a rearview camera, cruise control, and a 5.0-inch touchscreen audio system with Bluetooth audio streaming and a USB port.
HR-V EX SUVs add a right-side rearview camera, smartphone connectivity, keyless ignition, heated front seats, a second USB port, a sunroof, automatic climate control, paddle shift controls, and a 7.0-inch touchscreen. Fuel Economy The top-rated Honda HR-V earns up to 31 mpg combined. Among small crossover SUVs, the Honda HR-V rates among the best for fuel economy.
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Africa 44 TRAVELWISE
British Airways Celebrates Award for WorldClass Family Travel as 150,000 Customers Use Airline’s Dedicated Family Zone
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ritish Airways is celebrating being named Best Family Friendly Airline by toy company Play Like Mum. It compared 20 international airlines, looking at how easy they make the travel experience for families.
As well as sitting families together for free, British Airways was praised for offering families pre-boarding, giving children their own free checked luggage allowance, plus a free allowance for a pushchair and car seat, complimentary special kids meals on
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longer flights, special children’s in-flight entertainment and free carrycots and baby seats on board flights. To help further ease the stress of family travel, this summer British Airways introduced a permanent family check-in zone and security lane at the its hub at Heathrow Terminal 5, which has so far been enjoyed by 150,000 customers.
Tom Stevens, British Airways’ Head of Customer at Heathrow, said: “We know how daunting the experience of flying with
children can be, and all the extra stress that comes with it. We’re delighted with the great feedback we’ve been hearing from families who are really pleased with the changes we’ve made to make their journeys more exciting and less stressful from start to finish.”
British Airways has been handing out water and ice-creams, storybooks and cartoon boarding passes to children in the family zone to get their holiday off to an extra special start.
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Africa
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