november 2016 Kshs. 300 / Ushs. 9000 Tshs. 6000 / RWF. 2200
INSIDE NABO CAPITAL: CREATING TANGIBLE WEALTH EENOVATORS: TAKING CHARGE OF ENERGY TRANSFORMATIONS GREEN BOND, A FINANCING ALTERNATIVE FOR ECO-FRIENDLY PROJECTS
Diamond Property Merchants Limited−a real estate company− is this year’s winner of the Kenya Top 100 mid-sized companies’ survey.
THE BUBBLY PROPERTY MERCHANTS
ESTHER MUCHEMI: STARTING SAMCHI GROUP? THE REST IS HISTORY DREAM DEBO: A LIBERIAN ACTOR WITH A PENCHANT FOR KENYA A DATE WITH NATURE AT THE NAIROBI SAFARI WALK
Edwin Khiranga, Sales and Marketing Director at Diamond Property Merchants. November I 2016 Edgemagazine.co.ke
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Edgemagazine.co.ke I November 2016
Nabo Africa Fund Nabo Africa Fund is an investment vehicle that allows you to pool funds with other investors sharing similar investment goals. We then invest this pool of funds in a broad selection of financial assets such as shares, bonds, money market instruments and other authorized securities across Sub Saharan Africa.
The fund is subdivided into four sub funds that you will choose from depending on your risk return preferences:
+254 20 228 6700
info@nabocapital.com
www.nabocapital.com November I 2016 Edgemagazine.co.ke
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Contents
22. DIAMOND PROPERTY MERCHANTS
EDGE FOCUS
16. NABO CAPITAL
12. NABO CAPITAL Creating Wealth Through Unique Investment Opportunities
14. EQUITY BANK Disrupts itself through a new banking capability driven by technology and innovative banking to support convenient lifestyle
18. THE TECHIE Advanta Africa-Top 100 SMEs ICT Winner- On the Power of SMS in Business Communication
20. WOMAN OF POWER
5. HEAD START 6. QUOTABLE QUOTES 7. MAIL 8. BRIEFS
Edgemagazine.co.ke I November 2016
Esther was the pioneer dealer with Safaricom to roll out M-Pesa services. Her company has been ranked twice as the M-Pesa agent dealer of the year. In 2014, she was named a finalist in the Ernst & Young (EY) Entrepreneur of the Year Award’s, Eastern Africa chapter.
Contents
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MAIN STORY 22. DIAMOND PROPERTY MERCHANTS Setting New Standards in Property Investment
OPINION 26. CUSTOMER SERVICE 28. HUMAN CAPITAL 30. CREATIVE INDUSTRY 32. INFRASTRUCTURE 34. FINANCE & INVESTMENTS
20.
WOMAN OF POWER
36. REAL ESTATE
FEATURES 38. TRANSPORTATION 40. MKU @ 20 Mount Kenya University Rwanda set for inauguration this November
42. EENOVATORS Taking Charge of Energy Transformations in Africa
44. FINANCIAL SERVICES Sanlam Kenya train its sight on better wealth creation after rebrand Sidian Bank: The bank for entrepreneurs by entrepreneurs
ARTS & INDUSTRY 50.Meet the Liberian actor with a
penchant for Kenya’s film industry
52.
TRAVEL & lEISURE
26.
CUSTOMER SERVICE
TRAVEL & LEISURE 52. A Date with Nature at the Nairobi Safari Walk
BOOK REVIEW 54. Making Your Point: Communicating Effectively With Audiences of One to One Million
SONG REVIEW
50.
BOOK REVIEW
56. Cranes in the Sky
ARTS & INDUSTRY
54.
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Managing Editor Sylvester Okumu sylvester@edgemagazine.co.ke Editorial Oroni Tendera ibrahim@edgemagzine.co.ke Jenny Nyawira jenny@edgemagzine.co.ke
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Head start
Bubbly Property Merchants
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Don’t Miss An Issue
ord on the street has it that Nairobi is a hot property market. Right now, real estate is a bubbly investment topic. The sight of high-rise buildings and the huge demand for housing are becoming a common phenomenon.
Nairobi’s population is growing day by day, thanks to rural-urban migration. A walk downtown Nairobi will slap you with this reality−hordes of humanity crisscrossing the streets on any given day, you would be forgiven to think it’s a market day. Where do they stay and lodge? Experts argue that the surge in urban population has increased the demand for housing. The juggernaut has impacted on the price of land and property in the city and its environment. Land now costs millions of shillings with some high-end market nearly crossing the billion mark, and its value continues to increase. Land is a fixed resource. Once acquired, how do you ensure that you make maximum returns out of it?
Diamond Property Merchants are now rewriting this whole experience for land and home owners. The firm has a range of innovative and affordable property solutions. And the fact that they are winners of this year’s edition of Top 100 SMEs survey in Kenya is no brainer. They know what they do best. Flip through the pages for their success story and many more. sylvester@edgemagazine.co.ke
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6
Quotable Quotes Janet Kanini-Ikua “I went through a difficult time when I got sick and only able to afford my treatment through the help of well-wishers, but not everyone is as privileged as I was. That’s how I got involved with Doctors Beyond Borders.” The 38 year old cancer survivor is the health ambassador-Doctors Beyond Borders (DBB) and CEO-Kanini For Africa Foundation. When she was diagnosed with cancer she felt that all was over. But now a cancer survivor, she has dedicated her time to changing the lives of cancer patients in Kenya. She is a graduate of Kenyatta University and got involved in poetry and drama before joining TV. She has been known as an anchor and show host with KBC, KTN and NTV. She’s widely known as a host for the ‘N-SOKO Property Show’. DBB enables patients ot receive medical consultation and treatment by linking them to doctors globally, while her foundation aims to increase cancer treatment facilities, end stigma and give hope to cancer patients and their caregivers. Prof. Paul Timbe Zeleza
“It is you, today’s youth, and your offspring, tomorrow’s youth, who will carry forward the historical and humanistic agendas of Pan-Africanism—to create integrated, inclusive, innovative and sustainable democratic developmental states, societies, and economies.” He is Vice Chancellor and Professor of the Humanities and Social Sciences at the United States International University-Africa, Nairobi, Kenya, a position he assumed on January 1, 2016.
Prior to joining USIU-Africa, he was Vice President of Academic Affairs and Professor of History at Quinnipiac University in Connecticut, USA. Previously he was Dean of the Bellarmine College of Liberal Arts and the President’s Professor of History and African American Studies at Loyola Marymount University. He also served as head of the Department of African American Studies and the Liberal Arts and Sciences Distinguished Professor at the University of Illinois at Chicago, taught at the Pennsylvania State University, and was Director of the Center for African Studies and Professor of History and African Studies at the University of Illinois at Urbana-Champaign. Before going to the US in 1995 he was College Principal and Professor of History and Development Studies at Trent University in Ontario, Canada. Earlier he worked at the University of Malawi, University of the West Indies, and Kenyatta University. In 2006 he was appointed Honorary Professor at the University of Cape Town, South Africa. In fall 2015, he was a fellow at Harvard University. Nuru Mugambi “Stewards of our economy to ensure the immediate and long-term wellbeing of our people and natural capital is genuinely interlinked with the pursuit of returns and prosperity.” Nuru is the director, public affairs and sustainable finance at the Kenya Bankers Association. She studied marketing communications at Kennesaw State and MBA at Georgia State University, Atlanta.
She started her career as an intern at Africa online in 1996 before moving to US for her undergraduate and master’s degree. She came back to Kenya and worked as the head of corporate affairs at Barclays before moving to Kenya Bankers Association (KBA).Her contributions towards policy formulation have led the banking industry towards adopting numerous progressive practices, particularly in the area Public Engagement, Sustainable Finance and Alternative Dispute Resolution. This work earned Eisenhower Fellowships Awards, Africa Sustainability Leadership Award (2013) and Top 40 under 40 women in Kenya 2016 by the Business Daily. Edgemagazine.co.ke I November 2016
Letters Raising standards in the hospitality industry The December holiday season is around the corner. While this period experiences an increase in the number of both international visitor arrivals and domestic tourists, how well are we prepared to offer visitors value for their money? Simba Corporation has set standards in the industry by establishing brands that meet international standards. I believe all investors should benchmark on this. Besides, the County governments should take advantage of devolution to grow local tourism.
Women in tech
Main story useful
There is no doubt that more and more women are taking technology related courses. Besides, various organizations are inspiring talented women to consider a future in the field of technology. Gatwiri Kirimi’s courage to quit her job and establish a technology related company evidences the real strength of a woman. One of her goals to provide training opportunities for young girls in IT should be emulated by many.
Kenya has been suffering from terrorist attacks for a few years now, which has been costing many lives. While the government has played a major role to solve the issue, it is apparent that the problem is far from over evidenced by recent attacks. While tight measures have been put in place, the government should work together with private security companies in a bid to tighten security and protect lives. I believe for Kenya to progress, terrorist issue should be
Keep up Gatwiri!
Irene Munya Student, Nakuru
solved permanently.
Paul Maranga Businessman, Mombasa
Beatrice Mbugua Freelance Researcher, Nairobi
November I 2016 Edgemagazine.co.ke
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8
Briefs
Safaricom calls for meaningful partnerships to spur economic growth
Safaricom Foundation has also recently partnered with Shining Hope for Communities in a project that aims to scale up the provision of clean and accessible water to 84,000 people in Kibera, which is expected to bring down the cost of a jerry can by 60 per cent.
“Whenever the word development is mentioned it conjures different images in the mind of the listener. And for the people who benefit thorough our partnerships, development means supporting them improve their lives at the micro level, where it matters most to them and the communities they live in,” said Collymore.
Kilimani Primary Student, Christopher Mangera shows Safaricom CEO Bob Collymore how to use a braille machine during the 2016 Safaricom Foundation and M-PESA Foundation partners forum held at the Intercontinental Hotel.
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afaricom-Mobile network operator has reached more than four million Kenyans through programs aimed at alleviating poverty, extending quality education to nomadic communities, increasing access to maternal health care and improving access to clean water. Speaking during the Safaricom Foundation and MPESA Foundation partners’ forum held yesterday in Nairobi, Safaricom CEO Bob Collymore says the extensive reach has been attained through partnerships with more than 1,000 organisations over a span of 13 years.
Unilever ranked Top Employer in Kenya
The partners include several county governments, and non-governmental organisations such as PharmAccess, Amref, Action Aid, the Aga Khan Foundation, Huru, Meru School for the Mentally Handicapped, Women Challenged to challenge among others. One of the projects is a distribution of water in Makueni which is to reach 18,000 people and the rehabilitation of Nyalani Dam to contribute to reduced vulnerability to drought for 2,500 direct and 10,000 indirect beneficiaries in Kwale.
U
nilever has been ranked as the number one employer in Kenya for the fourth year in a row by Top Employer Institute, the global employer certification organisation. The Top Employer Institute Regional Director Africa Samantha Crous said Unilever was part of a select group of employers that advanced employee conditions worldwide this year.
Justin Apsey, Unilever CEO for East Africa during a hand washing campaign.
Edgemagazine.co.ke I November 2016
The Institute also ranked the leading consumer goods manufacturer as best
Collymore urged partners to ensure they provide both financial and material support to ensure attainment of quality impact.
Safaricom Foundation chairman Joseph Ogutu said; “We believe that when Kenyans have both the ability to succeed and advance economically and the power to make and act on economic decisions that lift them out of poverty, their lives will be positively transformed.”
Collymore added that for the targeted communities, “it means giving them a means of regaining their dignity and in some instances their self-esteem. The Partners’ Forum brought together various organizations that collaborate with the Safaricom and M-PESA foundations to positively impact the lives of those in the community through various projects.
employer in Africa for the third year running. Unilever’s top employer status in Africa was solidified when company was certified in Zimbabwe for the first time and achieved No.1 status in Ghana and Nigeria as well. The annual international research and audit undertaken by the Top Employers Institute recognises leading employers around the world that provide excellent employee conditions, nurture and develop talent throughout all levels of the organisation, and which strive to continuously optimise employment practices.
Around Africa
KEPSA, Legislature teams up to improve country’s business environment.
Majority leader Aden Duale, Nick Nesbit director KEPSA with Speaker of the National Assembly Justin Muturi and during the speakers round-table.
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egular engagement betweenthe Kenya Private Sector Alliance (KEPSA) and Legislaturehas seen KEPSAprovide feedback and input on 105 Bills byhighlighting areas of proposed amendments with an aim of improving the country’s business environment in the last 7 years.
SMEs advised to embrace risk solutions for growth
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mall and medium enterprises (SMEs) seeking to grow have been advised to prioritize risk management to guarantee their business sustainability.
Speaking during a KPMG TOP 100 Mid Sized companies’ forum, Sanlam Kenya Group CEO, Mr. Mugo Kibati said the adoption of risk management solutions remains a critical factor for business growth. Kibati expressed fear that SMEs may have lost more than Ksh. 50 Billion in 2015 based on the volume of claims paid out under the general insurance class. “I feel the volume of claims paid out is a good indicator of the level of risk exposure given that only three out of ten SMEs tend to hold risk solutions.” He further said that the adoption of comprehensive risk solutions provided by
Speaking at the recently concluded Speakers Roundtable KEPSA CEO Carole Kariuki says the partnership established between Kenya’s Private Sector and the legislature through the Speakers Round Table has to date remained focused on bills that bear on the country’s business environment.
“Last year was significant following the enactment of four key business reform bills namely the Special Economic Zones Act; Companies Act; Business Registration Service Act; and, the Insolvency Act. On each of these bills, there was a healthy interaction and exchange with the National Assembly over a significant period of time. This would not have been so if we didn’t have unanimity of mind with the National Assembly on the need to secure and promote Kenya’s competitiveness,” she said Ms. Kariuki said KEPSA recognizes the important role that the National Assembly has played in passing key business reform legislation that has improved Kenya’s competitiveness as an investment destination.
local general insurers will help shield SMEs from unnecessary exposure to various liabilities including cybercrime.
As part of Sanlam Kenya’s business development plans, the firm has managed to rollout a full menu of SME focused financial business services including life assurance, general insurance, banking, credit, health, bancassurance and asset management products.
Kilimall launches global shopping service in Kenya
K
ilimall-Online shopping mall has launched a new service that enables people to buy products from various markets across the world on the internet.
Through the Global Shopping service, Kilimall takes orders from shoppers for best-in- class products, sources them from
“We believe that Kenya’s upward economic trajectory in recent years, is a reflection of the pursuit of an enabling policy and regulatory framework which has continued to attract investment and support economic expansion,” she said Speaking while officially opening the forum, Speaker of the National Assembly Hon Justin Muturi noted that dialogue between the private sector and parliament promotes values of good business ethics and practices, innovation, hard work, goodwill and collective responsibility, promoting action-based best practices like corporate social responsibility, conservation and protection through prudent use of the country’s natural resources. The Speaker’s RoundTable served to emphasize the importance of dialogue between the National Assembly and KEPSA. The passage of key reform bills which has involved dialogue between the two Partners is an indication of the benefits arising from the engagement. It is important to continuously review and identify areas of future legislative review and intervention. pre-qualified merchants globally then delivers directly to customers in Kenya.
Speaking during the launch Kilimall International Operations Director Victor Ma said the global shopping service will provide more variety for Kenyan shoppers and save them the cost and inconvenience of travelling to those markets.
Through global shopping, Kilimall hopes to tap the growing demand for global products from Kenya’s burgeoning middle class both for home use and resale. “There is growing demand for various products from different markets worldwide. Kenyans can buy a variety of products from different markets from the comfort of their offices or living rooms,” Victor added.
It will take an average of 25 days to deliver products at a cost of only Ksh250-400. “Good things come to those who wait. Kenyans have been really looking for products in the global market but had no link for getting them cost-effectively,” said victor. November I 2016 Edgemagazine.co.ke
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10
Around The World
Lenovo Makes Interbrand’s Best Global Brands Report for 2nd Year Running
1
Use Your Logbook To Get A Loan In
Hr
For all your financial needs; Business or Personal • Pay School Fees • Medical Bills • Expanding Your Business
L
enovo (HKSE: 992) (ADR: LNVGY) announced that for the second year in a row, the company has been named as one of Interbrand’s Best Global Brands of the year. This recognition reflects the investment and commitment the company has made to continued product innovation and brand evolution. The highly influential list is published annually by Interbrand and features an elite group of the world’s most powerful and recognizable global brands.
The past year has marked a period of growth and brand transformation for Lenovo, as its recent investments in the acquisitions of Motorola Mobility and IBM’s System X server and storage businesses have significantly diversified the company’s product portfolio and customer reach. The company has maintained its position as the global leader in PCs with a market share of more than 20 percent; is the worldwide in the Android tablet space; is on the path to becoming a top three player in the datacenter market, and is a burgeoning challenger in the mobile space with the iconic Moto brand of smartphones. Harnessing all of this market growth and leadership across multiple product sectors has been a brand relaunch that looked beyond the product brands like ThinkPad, Yoga and Moto to a broader company brand point of view and belief that “Different is Better.” The Interbrand Best Global Brands report, now in its 17th year, identifies and ranks the top 100 international brands using a unique methodology that analyzes the many ways a brand touches and benefits an organization, from attracting top talent to delivering on customer expectations and driving economic value. The ranking is based on a combination of attributes that contribute to a brand’s cumulative value, including financial performance, the role a brand plays in influencing customer choice and the strength a brand has to command a premium price or secure earnings for the company.
Edgemagazine.co.ke I November 2016
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Ericsson Innovation Awards seek to address rising food scarcity
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ricsson (NASDAQ: ERIC) has opened up registration for the subSaharan edition of Ericsson Innovation Awards (EIA) competition where innovators and start-ups from across the region can contest to win upto USD 10,000.
The participants have opportunity to develop and showcase innovative ideas that would have great impact with the theme being “The Future of Food.”
Food scarcity is a rising global concern especially in sub-Saharan Africa. Africa’s agricultural production has decreased since the 1960s - despite most of the continent’s population being involved in the agricultural sector. Today, innovative ICT solutions are increasingly being used in farm management, food development, storage and distribution. With a growing population and untapped arable lands in sub-Saharan Africa, agriculture and food industries are ripe for disruptive innovation.
Hilton to open tallest Africa’s outlet in Upper Hill, Nairobi
G Nairobi.
lobal hotel chain Hilton Worldwide has announced plans to open its tallest Africa’s outlet in
Hilton said that it has entered into a franchise agreement with Jabavu Village Ltd and White Lotus Projects that will see the hotel expand its existing presence in Kenya to create Africa’s tallest building. Scheduled to open in 2020, the building will stand at 330m high with 255 guest-rooms. It will offer multiple food and beverage outlets, including a relaxing poolside bar, specialty smokehouse and grill restaurant, lobby dining area with landscaped deck and a boutique rooftop bar with unbeatable vista views of the Nairobi skyline on the 43rd level.
November I 2016 Edgemagazine.co.ke
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Wealth Management
In a span of three years, the company has grown in leaps and bounds to become one of the most preferred fund manager
Nabo Capital: Creating Wealth Through Unique Investment Opportunities By Jenny Nyawira
I
n recent times, the fund management scene has been busy. The launch of Nabo Capital in April 2013 took the industry by storm. A wholly owned subsidiary of Centum Investment Company Limited, Nabo, was merely a department – the quoted private equity (QPE) division within the groupthat spinned off to become a fully-fledged entity with its own structures. According to Nabo Capital’s managing director, Pius Muchiri, the need to establish the fund manager was linked to the success of Centum. “Many people came to Centum saying they liked our story, our track record, and the fact that the company knows how to create wealth. They wanted to participate and imitate our track record without necessarily having to buy Centum shares in the stock exchange.” Going down memory lane In 2009, the company embarked on a revolutionary five-year strategy dubbed Centum 2.0. “We were very deliberate. We separated the portfolio into three divisions – private equity, real estate and quoted private equity,” says Pius. These business lines were Edgemagazine.co.ke I November 2016
2013
In , Nabo Capital received a license from the Capital Markets Authority (CMA) to manage third party funds.
Nabo Capital managing director, Pius Muchiri.
separated in order to generate unique track records for each and use them to attract investors. Pius took leadership of the quoted private equity division that dealt with public markets under Centum, which later transformed to Nabo Capital. “In the same year, we were given a portfolio of about Ksh. 2.3 billion and within a period of six years, we were able to generate revenues equal to Ksh.7.2 billion,” recalls Pius.
The company was only one percent exposed outside Kenya. “We had made a thoughtful decision to have at least 50 percent of the portfolio extended outside Kenya,” he says. This was successful adding that“In 2014, we had a presence of about 63 percent outside Kenya. 80 percent of the revenues came from that market. We are literally importing gross domestic product (GDP) into the country.”
Without a doubt, the division proved successful and the opportunities that were coming across were much bigger than they could be accommodated at Centum. The need for a platform that could help them to co-invest with other investors was essential. Pius points out that he spent a lot of time trying to justify why the market needed another fund manager. The conclusion was that the market was desperate for a new and wider variety of assets. It therefore needed a player that could expand the investment. “For instance, in the last 10-15 years, the number of equity stocks in the stock
a document called an Investment Policy Statement.
Skilled Team Pius observes that the company has a unique set of people. “The Nabo DNA cascades from the Centum Group. The DNA is what determines the kind of individuals who are likely to succeed in Nabo and is really what sets us apart from the rest. We have an elaborate Graduate Trainee programme that allows the company to grow its talent from the bottom going up.” The managing director notes that this is the only way one can join the team,unless on very rare occasions when there is need to source experienced individuals.
we were given a portfolio of about Ksh. 2.3 billion and within a period of six years, we were able to generate revenues equal to
Ksh.7.2 billion,
exchange were around 55 – 60 stocks. In 2011, total pensions in the market were Ksh. 245 billion. In 2015, pension assets were close to Ksh. 900 billion. In 2008, foreign investor participation in daily turnover at the stock exchange was minimal.” However, the listing ofSafaricom provided more publicity allowing the local capital market to attract more prominent internationalinvestors. Today, foreigners command 60 to 80 percent daily turnover at the stock exchange. In 2013, Nabo Capital received a license from the Capital Markets Authority (CMA) to manage third party funds.
Role of Nabo Nabo is playing a major role in the industry by bringing new products into the market. The fund manager is one of the licensed Real Estate Investment Trust (REIT) managers. The unit trust investor is allowed to invest outside of Kenya. This means that any Kenyan today can access opportunities in any place across Africa. Furthermore, Nabo plays a key role connecting investors with lucrative projects. “We play an advisory role in helping foreign investors, especially those
who are looking for opportunities in the investment market to identify them,” observes Pius.
Investors understand that Africa is the next frontier and therefore they would like to have a piece of it. However, they do not have any means of accessing the continent. In this regard, Nabo plays a pivotal role of selling Africa to the rest of the world. “We educate foreign investors and help them identify local opportunities. They also use us as their avenue for channeling their funds into Africa,” says Pius. Currently, Nabo is the asset manager of some of the most coveted global funds in the world. Target Market Nabo targets institutions and high-net worth individuals.
“We are in the business of making people rich,” quips the executive. “However, people become rich differently because they have different risk appetites,” he adds.With reference to this, individuals are taken through a process in order to understand their financial goals and risk appetite. “We also consider other factors, such as, some people desire to grow their portfolio relatively fast while others are interested in a portfolio that generates income.” The process is normally formalized through
Moreover, the company has fourteen golden rules which act as guidelines that help the staff to build a culture of high performance.
Pius, a chartered financial analyst, has been with the Centum Group for almost 12 years. He says he is the typical Centum DNA that has grown through the business. “I have been involved in the transformation of Centum and that transformation continues within Nabo Capital.” He has gained broad and rich experience including setting up the business from scratch,developing processes, recruitment, product development, systems structuring and branding among others. Road ahead “In the last three years, we have learnt a lot and we have been able to set up systems, processes and teams and at the same time managed to remain profitable. Within that period, we were named top four in the industry in terms of revenues and profitability,” offers Pius. “We are in a strong position now in terms of clarity of products offered and relevance in the market,” he adds.
Kenya has become a preferred destination for capital. The diversified nature of the economies is our strength therefore attracting a lot of capital destined for public markets and private equity opportunities. “I am therefore very optimistic about the future,” he concludes. November I 2016 Edgemagazine.co.ke
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14
Eazzy Banking
Equity Bank Unveils a Customer Led Digital Bank Disrupts itself through a new banking capability driven by technology and innovative banking to support convenient lifestyle
• Maintains its’ historical and revolutionary culture of disrupting the banking industry through bold and innovative solutions
• Enlists high level partnerships and world leading experts in banking technology, security, big data aggregation and analytics ensuring a high availability, agile and secure operating environment
Equity-Bank CEO, Dr. James Mwangi.
Overview • Equity scales new heights in its digitization journey, unveils EazzyBanking, a range of digital products, which are channel agonistic, driven by a versatile technology and capability platform
• Embraces a customer led revolution where customers have demonstrated affinity for digital banking. More than 80% of all loans in the bank are now being accessed through the mobile phone showing an increasing desire for self service banking • Responds to customers’ evolving and sophisticated lifestyle; Customers value more free time and prefers to spend it with family and doing what they love. They prefer self-service digital banking. They also have a higher preference for convenience in payment platforms and access toloans. Edgemagazine.co.ke I November 2016
• Equity enters the third phase of its growth and evolution characterized by technology and digitization, making banking easy. First phase from 1994, the bank reached out to unbanked populations and gave them a safe and secure place to keep their money, away from the mattress. Second phase of ten years, the bank expanded to rural areas deepening financial inclusion and debunking the myth that rural areas were not bankable.
• Bank branches will transition to centers of excellence focusing on high value transactions banking for SME and corporate banking.
“Customers’ banking trends have declared the death of the bank branch as transaction channel, as they increasingly embrace self-service technology platforms that give them freedom, choice and control.” Dr. James Mwangi revealed this while launching a suite of digital products dubbed Eazzy Banking that promise to give an easy, comprehensiveand secure experience while supporting a convenient lifestyle for Kenyans transacting both in the country and abroad. He added, “Further, customers have demonstrated the extinction of cash preferring to transact with digital money which is safer for transactions and more
hygienic than bank notes. In response to these trends that we have been observing from our customers, we have reinvented ourselves into a digital bank to respond to their needs, in line with our promise as their listening caring partner. ” Dr. Mwangi said that this trend is in line with the Government’s vision of a cashlite economy as contained in the country’s vision 2030. The all-inclusiveEazzy suite of banking products will take care of all customer needs. The bank unveiled a banking app known as Eazzy App, an interoperable payment platform, EazzyPay; a mobile based loan product, EazzyLoan; a solution to help Chamas, investment clubs and groups manage their joint finances and investments, EazzyChama ;a retail internet portal where customers can manage their bank accounts, EazzyNet. This platform also enables PayPal account holders to withdraw their funds to their Equity Bank accounts within three business days. A cash and liquidity management solution for SMEs known as Eazzy Biz, and banking capabilities packaged as APIs exposed through Eazzy APIs platform.
“We have a banking solution for everyone, in line with our inclusive agenda which we have carried as part of our commitment throughout our history, said Dr. Mwangi and added; “The bank’sstrategy is to be the region’s leading digital bankdelivering a remarkable client experience in key digital touch points.“We have all witnessed how rapid adoption of mobile and other digital channels have transformed how people bank. We are thus delighted to unveil this platform that will drive growth in our business via new innovations and increased customer loyalty.” he said.
Dr. Mwangi added that the digital journey that the bank started a year ago is already showing impressive results with the number of the bank’s active digital customers rising steadily.In the period ending September 2016, growth in Equitel mobile loan disbursements accounted for 84% of all loan disbursements compared to 16% branch loan disbursements.
Customers’ banking trends have declared the death of the bank branch as transaction channel, as they increasingly embrace self-service technology platforms that give them freedom, choice and control
84% In the period ending September 2016, growth in Equitel mobile loan disbursements accounted for 84% of all loan disbursements compared to 16% branch loan disbursements
Thesuccess of this strategy has been underscored by forging strategic partnerships with global leading experts in data security, big data capture and analytics ensuring an operating environment that is highly available, secure, scalable and interoperable. Some of the partners include Oracle who have provided the software and hardware technology (engineered platform and cloud service), Apigee who have provided the API platform to support the self-service developers’ portal for innovations, Airtel who support the Equitel MVNO capability, OpenWay who have provided the card management platform and Infosys who have provided the core banking platform.Experian MicroAnalytics have provided the bank with a robust credit scoring platform that aggregates all our data sources to analyze the customers Other partners include Paladion for security operations monitoring, CISCO for Network infrastructure, and IBM for core banking infrastructure.
Equity Bank has obtained the prestigious global Payment Card Industry Data Security Standard 3.1(PCI DSS 3.1)certification effective 28thAugust 2016, becoming the first Kenyan bank and one of the first banks in East Africa to do so. The certification affirms Equity’s adherence to international security standards related to the protection of customer information. In addition,
Equity Bank has recently partnered with a Global Security Operation Centre (GSOC) in line with the Bank’s strategic vision of providing secure Banking services to our customers. The GSOC is the central nerve center that offers real-time internal and external threats detection and cyber defense 247. The GSOC is equipped with specialized technology, processes and expertise to monitor, assess and proactively defend the Bank from any potential threats both internally and externally. “The rapid growth of the financial technology industry in Kenya is a testament to the role advancing technology is playing in the evolution of financial services on the continent. Technology is fueling innovation and growth in the financial services sector, creating new opportunities and disrupting the way business has traditionally been conducted.” he concluded.
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Eazzy Banking
About Eazzy Banking Products EazzyPay You can now pay for bills, goods and services straight from your phone using; Your Equitel Line, Equity Bank App (EazzyApp) or Mobile money (Mpesa Airtel Money and Orange Money) Look out for outlets with an EazzyPay Accepted Here signage; at shops, supermarkets, airlines, petrol stations, hotels, canteens as well as online.
EazzyApp EazzyApp is your Bank anywhere, anytime. Everything you do at the bank is now on EazzyApp. From sending money to paying for goods and services, accessing Eazzy loans, paying bills, checking the status of your account or saving for your future goals, it is all in your hands. Download the EazzyApp from Google Play Store or the App Store today EazzyLoan Get an Eazzy loan of up to Kshs. 3million instantly on your phone. You don’t have to fill in any forms and no need for guarantors. What’s more, you can monitor your loan balance and make repayments through your Equitel line or use the EazzyApp. You can access Eazzy Loan from Equitel, EazzyApp or EazzyNet Eazzy bank account Opening an Equity Bank account is easy. Simply dial *247# from your current local mobile network and open one instantly, hapo hapo. Download the EazzyApp and start doing your banking anywhere, anytime through your phone; pay bills, buy goods and services for free, send money for free, apply and get a loan, check your account balance, withdraw money from an agent or ATM and much more. EazzyChama This is an online solution that allows Joint, Investment, Group or Chama account holders to manage their group activities like record keeping and banking transactions, while maintaining transparency and accessibility among all group members. This solution allows group members to monitor group transactions, track personal transactions therefore saving time and work efficiently Edgemagazine.co.ke I November 2016
About Eazzy Banking Products
>EazzyPay > EazzyApp > EazzyLoan > Eazzy bank account > EazzyChama > EazzyNet > EazzyBiz > EazzyAPI
Multiple approvals Good news to holders of Joint, Group and Chama accounts. You can operate your joint account straight from your phone. No matter where you are, you can now use your Equitel line to approve group account transactions using your PIN. Multiple approvals allows signatories to transact wherever they are eliminating the need to physically meet in order to sign a cheque or to authorize transactions. It is safe, secure and convenient.
EazzyNet EazzyNet, offers our retail customers better online experience. Our new look and improved features enhances your online banking experience, making it easier to navigate through the platform. Bank anywhere, any time. The platform also enables PayPal account holders to withdraw their funds direct to their Equity Bank accounts within three business days. EazzyBiz This is a robust, secure and comprehensive Cash and Liquidity Management solution that incorporates Payments, Collections & Receivables, Liquidity Management and Host to Host (H2H) modules to cater for Cash Management requirements of Corporate and SME clients. Seamlessly integrated, it gives you a global view of your cash position, enables you to make payments, manage your cash flow and balances across multiple currencies and locations. EazzyBiz offers a great user experience, unified view of accounts and has information rendering capability through analytics and management dashboards.
EazzyAPI With Eazzy API, application developers, businesses, institutions and payment providers can now leverage the full capabilities of a digital bank. We have exposed the bank’s capabilities in the form of APIs for direct integrations to your systems or customers with bank grade security at the heart of such implementations. These APIs include: Funds transfer (within and outside Equity), Airtime top up from any telco at a discount, Pay bills, goods and services, Instant Equity account opening and much more.
Holiday time is Family Time
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@ After40 hotel
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Another one from November I 2016 Edgemagazine.co.ke
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The Techie
The mobile medium offers unique moments of consumer engagement due to the close and personal relationships people have with their phones, moments that other platforms are unable to deliver
Advanta AfricaTop 100 SMEs ICT Winner- On the Power of SMS in Business Communication
T
he mobile channel is fast becoming an important component of business communications strategies worldwide. SMS or text messaging is an effective tool for business communications because of its simplicity, ease of use and reach. SMS is available on virtually all mobile phones and over all mobile networks, making it the world’s most pervasive communications technology.
Mr. Lawrence Muriuki, Managing Director at Advanta Africa Limited explains why the text message has stood the test of time and continues to play an important role in business communication, despite recent debates suggesting that SMS is dead in the face of instant messaging applications. Though consumers are ditching texting for overthe-top (OTT) mobile applications like Viber, Snapchat and WhatsApp, small businesses and large enterprises are turning to application -toperson (A2P) SMS messaging as a powerful tool to connect with their customers. A2P messaging describes the service used to send an SMS from an application to a mobile phone. A well-known example of A2P messaging is when
Edgemagazine.co.ke I November 2016
Mr. Lawrence Muriuki, Managing Director at Advanta Africa Limited.
your bank sends an SMS message to notify you of any transactions occurring on your account as they happen. According to Communications Authority of Kenya (CA), SMS messages are set to increase from KSh 33.3 Billion in 2014/2015 to 46 Billion by 2018/2019.
Recent research also suggests that SMS will remain for at KShs 4 billion plus business for Telecommunications Companies for at least the next three years considering the continued growth in A2P messaging. Admittedly, it is hard to separate man from mobile phones. Studies indicate that mobile has evolved to be the 7th mass media channel with more cell phones in the world than all TVs and PCs combined.
The executive acknowledges that businesses worldwide are actively pursuing text messaging to enhance engagement and loyalty. With a properly executed SMS program, enterprises can engage their audiences in a non-intrusive way. SMS are used in business to build brand awareness, build purchase intent, promote timely offers, build customer loyalty, and improve customer service and decrease call center volume and costs.
The mobile medium offers unique moments of consumer engagement due to the close and personal relationships people have with their phones, moments that other platforms are unable to deliver. “I don’t think there is a more personal way to contact someone than on their mobile phone. Consider that when people give you their number, that is an indication that they trust you. So any communication via SMS is more private and it has better chances of getting opened and read,� observes Mr. Muriuki.
SMS marketing is not only easy to set-up and use but also relatively cheap. Small business owners with limited resources can benefit particularly because it is so affordable. Considering the high delivery and open rate, SMS marketing is a great opportunity for small business on a budget to up their marketing game .
Advanta Africa
emerged victorious in the Top-100 Mid-sized companies survey run by the Business Daily and KPMG. The firmed was named the winner in ICT category
2016.
SMS marketing allows you to send bulk messages with the click of a single button. The text is sent and received almost instantaneously and unlike other types of communication, text messages tend to be opened pretty much straight away. You can spot the benefit here, since whatever you send will be read within few minutes.
The mobile medium offers unique moments of consumer engagement due to the close and personal relationships people have with their phones, moments that other platforms are unable to deliver.
The team at Advanta Africa SMS remains confident that A2P messaging solutions will continue to become integrated into communication solutions across the globe, improving and aiding customer service and interception, client satisfaction, marketing campaigns and business processes. In this regard Advanta Africa Limited will strive to always offer innovative products in the field of SMS marketing and their large clientele is a testament to their commitment to unmatched customer focused products. About Advanta Africa Advanta Africa is a leader of multi-channel solutions provider of value added services and interactive mobile communication services. Formed in 2008, it is licensed by Communication Authority of Kenya and has grown from strength to strength building a dynamic network coverage in East Africa and beyond.
With direct connectivity with leading mobile phone and network operators in the region, the firm enables businesses to communication with their audiences through a raft of its innovative solutions. This has seen it emerged victorious in the Top-100 Mid-sized companies survey run by the Business Daily and KPMG. The firmed was named the winner in ICT category 2016.
SMS messages are set to increase from KSh 33.3 Billion in 2014/2015 to 46 Billion by 2018/2019.
November I 2016 Edgemagazine.co.ke
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Woman Of Power
Esther Muchemi: When a New Challenge Sends Chills Down My Spine I Embrace It Esther was the pioneer dealer with Safaricom to roll out M-Pesa services. Her company has been ranked twice as the M-Pesa agent dealer of the year. In 2014, she was named a finalist in the Ernst & Young (EY) Entrepreneur of the Year Award’s, Eastern Africa chapter
I
am the CEO of Samchi Group of Companies. My journey into entrepreneurship began two decades ago as a practising accountant and auditor. Thereafter I took a first leap in to the telecoms and I have never looked back ever since. My company won an agency dealership with Safaricom almost the same time they were starting up in Kenya. Looking back I always believe that I took the right steps at the right time. The mobile network operator trusted us to take up the challenge and push the brand into unknown and untested markets.
Esther Muchemi, CEO, Samchi Group of Companies.
My agency dealership has been a fairy tale, one that starts small and having to deal with a raft of challenges along the way before ultimately coming out victoriously. I never regret why I ended up in this field, perhaps I credit my late husband-such a great partner, who gave me a head start.
I took a simple step of faith and invested my little resources in it− myopic to the distance ahead but constantly believing that a journey of a thousand miles starts with a single step. Since then, my entirely bootstrapped company has organically grown to straddle the retail and corporate arenain Kenya. We now have a range of companies under the Samchi Group namely Samchi Credit-a microfinance entity, Samchi Heights-real estate and property development company, Samchi Telecom-a Safaricom agent dealership firm and After 40 Hotel. We have over 500 employees. I wanted to play part in the credit sub sector in Kenya which informed the establishment of Samchi Credit. The demand for credit is huge. Since setting up, we have witnessed the
Edgemagazine.co.ke I November 2016
ability of credit to transform individuals, entrepreneurs and businesses. Although timely, the huge demand for credit for the very first time bombarded me with challenges of scaling up. It requires huge capital investment. I am however excited for the little role I play in deepening financial inclusion. I have two children, Sammy and Stella. Stella heads the credit firm.
Samchi Heights was recently registered. We haven’t gone big yet but are optimistic it will pick up. Besides, I have been running Space International-a virtual office firm, for close to 3 years now. It is located at the 4th and 5th floor of Eloi Plaza along Tom Mboya Street in Nairobi. It has offices, meeting rooms and boardrooms with full secretariat services and office functions. Although its growth has been slow, it is one of the investments that excites me. You may wonder why? I love young entrepreneurs and I felt that I am obliged to help them grow. Space International offers them a place where they can operate and formalise their enterprises at affordable rates. I like the energy in young people and I believe they should be empowered to succeed. My staff comprises of the youth. I also brought in my daughter because I want to instil a culture of entrepreneurship in my children when they are still young. Perhaps it may also simplify succession issues.
Women need to believe in themselves. No one can stop your ambitions. The youth have so much energy and it is about time to direct their energy in constructive activities.
Youths should take responsibility early enough in their life, make mistakes and learn from them.
For us to grow from a tiny office to having a group of companies, I had to embrace a very dynamic approach to management. I value honesty, trust and integrity besides believing in God. I’d rather lose a deal than compromise my trust. My efforts to set up one of the country’s most successful group saw me named a finalist in 2014 Ernst & Young (EY) Entrepreneur of the Year Awards (EOYA), Eastern Africa chapter.
Finalist in 2014 Ernst & Young (EY) Entrepreneur of the Year Awards (EOYA), Eastern Africa chapter.
Under my litany of personal and professional accomplishments lies unwavering focus of succeeding at one thing before taking up the next challenge. I don’t have a plan B. if something fails I’d be happy that I gave it my best. Sometimes failure is a step toward success. My penchant for new challenges saw the establishment of After 40 Hotel.
A ten storey building located at the heart of Nairobi’s CBD along Koinange Street. It houses 63 furnished rooms, a lounge and a restaurant. For a long time Kenya has been a key tourism and safari destination and I wanted to be part of this exciting industry.
I am motivated by new challenges. My greatest inspiration springs from within. You haven’t seen the best of us yet. We will launch new ventures and introduce new products. We want to go big on property development and do a lot more on hospitality, but without losing focus on our core mandates. I am also envisioning to do a little bit of farming as a hobby.
Women need to believe in themselves. No one can stop your ambitions. The youth have so much energy and it is about time to direct their energy in constructive activities. November I 2016 Edgemagazine.co.ke
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Main Story
Edwin Khiranga, Sales and Marketing Director at Diamond Property Merchants.
Edgemagazine.co.ke I November 2016
Diamond Property Merchants: Setting New Standards in Property Investment Diamond Property MerchantLimited - a real estate company - is this year’s winner of the Kenya Top 100 mid-sized companies’ awards. By Jenny Nyawira
“
The Top 100 SME recognition comes as a wakeup call that the market has acknowledged our unique investments solutions,” opens up Edwin Khiranga, Sales and Marketing Director at Diamond Property Merchants. He attributes this success to hard work, dedication and commitment to gratify clients’ needs.
The Top 100 mid-sized companies’ survey takes place in Kenya, Tanzania, Uganda, and
Rwanda. The annual awards, an initiative of the Nation Media Group’s Business Daily and financial consultancy firm KPMG, is currently in its ninth year. Home ownership Established in 2000, Diamond Property Merchants has straddled the real estate sector racking up success year after year: “Our key focus is providing Kenyans with strategic property investment solutions,” offers Mr. Khiranga.
The firm started off as a real estate agency. It has grown in leaps and bounds to become a large scale property company, and top of its game according to the executive. In 2010 it took a strategic focus to add value to land investment by responding to the needs of Kenyans. “Our land are affordable and have the best value add,” shares Khiranga. That strategic approach has seen Diamond Property develop affordable housing
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Main Story
Edwin Khiranga, Sales and Marketing Director at Diamond Property Merchants.
units much to the excitement of clients. It involves a three dimensional (3D) approach, catering for the needs of all segments of the market, from middle income earners, upper middle to high income earners. Other organized groups such as Chamas have not been left out as they can access a raft of affordable properties through their unique savings module.
Word on the street has it that Nairobi is a hot property market. Mr. Khiranga acknowledges this saying that there is extreme demand for home ownership in Nairobi due to the influx of people coming to Nairobi from the country side for higher education, job opportunities and more. “If you look at a place, say Eastlands, you find that most properties are fully booked even before completion. The same applies to our properties which informed our strategic direction of launching them in phases, so that everyone has a chance to enjoy our offers. Overly, we have a goal of converting tenants into home owners, especially the youthful generation.�
Some of its ongoing and completed projects include Eden Park along Kangundo road, Edgemagazine.co.ke I November 2016
Part of Green house projects by Diamond Property Merchants.
there is need to start earning from their investment. “In this breathe, earlier this year, we conducted a survey among our previous buyers in matters such as – what they have been doing with the land bought and its value. Most of them were happier with the rate of appreciation. Something more needed to be done though,” says Khiranga. The firm felt the need of actualizing the real value of land. These ideals prompted it to transform into a strategic land investment hub. That is how the agribusiness idea was born.
“The agri is part of value addition to our clients who would wish to reap extra grains from their investments,” says Mr. Khiranga. The executive affirms that the agribusiness value add has been a success since its launch a few months ago. “Most investors are now happier that their land is actively in use which also guarantees a high rate of turnover. We also envision the agribusiness ventures to have a bridging role in the commodity market. Since we are using greenhouse for the projects, these urban farmers can farm around the year, irrespective of the rains or seasons. With constant supply of the produce to the market, we will have prices of vegetables and the likes stabilizing-a larger economic gain to the society.”
Ebenezer Gardens, Ruiru East properties located in Juja farm and Bethany City.
“Our housing concept is affordable and our properties are strategically located in high growth and productive areas,” avers Khiranga. Guided by the values of professionalism, uniqueness, teamwork, reliability, equity and customer focus, the company has been on a growth trajectory to deliver its
promises. “We are not looking back,” he quips.
Agribusiness concept “Our agribusiness programme has transformed the property market, creating urban farmers by availing proper infrastructure and farm management services,”
Mr. Khirangafurther observes that as investors wait for their land to appreciate,
Timely issuance of title deeds Land is a very tetchy issue, which always influences the buying decisions of many people. As such, timely delivering of promises to clients is key, admits the manager. He adds that Diamond Property Merchants is known for efficiency, flexibility and timely delivery of genuine title deeds. “We usually give our customers a minimum period of two to three months at the time of purchase to obtain their title deeds. We’ve issued an average of 5000 titles annually.” Moreover, the company does due diligence on any piece of land before purchasing to ensure it is genuine. Towards this end, Mr.Khiranga observes that the move by the government to cap interest rates on bank loans means Kenyans will be able to access affordable financing and mortgage options.The industry needs to make this possible.
November I 2016 Edgemagazine.co.ke
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Customer Service
lucy kiruthu
T
Five Ways To Keep Your Customers For Life
oday’s business environment is highly competitive. Customers have a wide range of service providers to choose from. Switching from one to the other does not cost much. In an instant, one can open a new bank account, get a car insurance cover or switch the internet services provider.
The selection continues to grow; restaurants, supermarkets, furniture stores, fruit vendors, petrol stations, electrical shops, boutiques, saloons, car washes and many other businesses are all lined up next to each other. In fact, some customers hold multiple loyalty cards for supermarkets, for airlines and for other businesses. Their loyalty is questionable; they accumulate reward points but this does not mean they are loyal to one service provider It is expensive to look for new customers to replace customers that come and go. What makes customers stay and possibly stay for life is a combination of factors.I share with you the top five that I believe can help us keep our customers. Retaining customers is a big win for any kind of business. Know your Customers It is important to know your customers. Not necessary by name but who they are;their general profile, what they like and what they do not like. Knowing our customers takes effort and it requires listening to them constantly at every opportunity.
By listening to our customers, we get to know more about them, we understand them better. In some businesses where the service is more personalized and the customers are more regular, knowing a little more details about the customers is crucial. Know their names, know what they do, get to know about their family, their background and anything else that would help build a relationship. My philosophy is that customers are people first and they like it when we see them as humanand when we aim for friendly interactions. Edgemagazine.co.ke I November 2016
Every forwardlooking business therefore needs to be fully committed to making the end-to-end customer experience painless
Make Customers feel wanted Customers as people are creations of emotions; they have feelings. How customers feel is at the centre of customer loyalty. My simple thinking on customer service excellence is that it is about making customers feel great about being your customers so great that they tell others about you. How customers feel is a culmination of many facets of the interactions they have with our business. Most important is whether these interactions make them feel wanted or unwanted, important or a bother, appreciated or unwelcome. Every time a customer interacts with an organization is an opportunity to make them feel wanted, feel valued, fell appreciated. It is for this simple reason that words such as Karibu sana (you are welcome), thank you, hope to see you again add value to customer interactions. Therefore, businesses planning to hold on to their customers for life should be more deliberate in making customers feel wanted and aim to make their experience special and painless.
Keep Promises In a business, many promises are made. Some of the promises are unspoken while others are made during daily customer interactions. A company’s brand in itself is a promise. A main source of customer dissatisfaction are promises made but not kept. Therefore, every person hoping to survive long enough in business needs to keep promises made. Keeping promises builds trust, which in turn strengthens relationships. Simple promises such as calling back, responding to an email, delivering as per the promise are crucial. Other promises include quality of the product, uptime for a service, turnaround time for a service etc. When promises are consistently kept, a trusting relationship flourishes and the customer is more forgiving when things go wrong.
Keep Customers informed Customers want to know what is happening directly from you. They like it when you share with them information about what is going on in your business, new products, new services, major changes, new staff etc.In addition, customers do not like it when rules are changed on them and no one alerts them or when they have to dig out for information they should have. I was very impressed the other day as I was getting into a mall through a second floor entrance and the guard was kind enough to alert me that the particular entrance I had used would close at
8pm and directed me. This was a simple but useful piece of information. The same evening while at the store downstairs, the cashier kept us waiting without informing us that he needed more time to sort out a credit card that had failed to go through.
Customers like to be kept informed even on matters that may seem trivial. You may have noticed that some large stores use overhead announcements to share information with their customers. Other businesses send emails or SMS or call the customer with updates. How informed is your customer?
Be Accessible Finally, it is important for a business to be accessible. Accessibility goes beyond location to calls that are picked up, staff that are available and ready to help, managers that can easily reached for assistance, parking spaces that are available or reserved, web enquiries that are responded to, social media interactions that are attended to and to a business that is easy to do business with. Being accessible means that the customer finds it easy and convenient to use our services. With the above insights in mind, it is important to point out that customer retention will not just happen automatically and none of these tips individually will make customers stay. Every forward-looking business therefore needs to be fully committed to making the end-to-end customer experience painless. The leadership team must lead the effort to make a focus on the customer a top priority and service excellence a way of life. Everyone must be involved and this must be seen in his or her attitude and behaviour towards customer. Collectively an organization can purpose to hold on to its customers from one generation to the next. Unfortunately, many businesses especially the small ones do not hold on to their customers long enough. Let us consider emulating a top barbershop in town that is today serving the three generation – father, son and grandson. Lucy Kiruthu is the Lead Management Consultant at Evolve Business Consultants a Nairobi Based Management Consultancy firm on a mission to Inspire Positive Change in Business and Society. The firm focuses on Strategy, Leadership and Service Excellence. Please connect via twitter @EvolveConsults of Facebook @ EvolveBusinessConsultants
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Human Capital
By Perminus Wainaina
7 Key Hiring Traits that can Make or Break your SME In order to survive and grow, small companies operate in fast paced and often challenging environment. This means your employees should be able to comfortably wear many different hats and perform a variety of tasks in order to succeed
A
ny business, whether small or big, is defined by the employees it hires and those that it fires. This means your employees are the face of your brand and the hands working behind the scenes to help make your business what it is. A hiring decision can either make or break your business. For small business owners, every employee count as limited resources call for no chances of duplication of roles. For instance, you can only have one person doing administration duties and not two. Finding good employees is still difficult, despite the high rate of unemployment in Kenya according to a talent report survey by Corporate Staffing Services in 2014. 71.8 per cent of the respondents receive too many job applications that require extra time and cost to screen or filter down to find those qualified for the position. According to the survey, “a poor hiring decision cost 2-5 times the person’s annual salary.� Mistakes are not only expensive in terms of effort and money that is paid and lost, but also the time wasted that could have been invested with a better candidate, as well as the demoralization that occurs in a company with high employee turnover. Your own success therefore rides on every employment decision. So how do you hire the right people to help your company flourish?
Here are key characteristics to look for when hiring for your small business. Believe in and connect with your vision Vision carriers will be great ambassadors of your company in the community. As you recruit sell your vision to candidates not only in the job description but also during the interview. For
1.
Edgemagazine.co.ke I November 2016
example, ask questions about “Why do you want to work here?” It will help you ascertain candidates’ enthusiasm. More so, take note of what the candidate ask about your business beyond the job description. Although not every new hire has to be ecstatic about your product or service, this will help you identify candidates who are passionate about the way you do business.
2.
Keen to learn and responsible Small businesses are growing and this comes with many challenges from both internal and external environment interferences, which calls for flexibility and adaptability. The ability to learn new things is therefore very essential in a small business employee. Fresh graduates are an obvious choice if you want flexible minds that can acquire new skills with ease, but also keep a special eye out for people who never lost their love of learning even after years on the job. Additionally, ask candidates what keeps them motivated on the job. If learning plays a role in what fuels their professional fire, then you know you’ve identified some real gems.
3.
Hires who are Go-getters Go- getters employees know what they want and are always willing to take on new tasks and projects. They will be proactive and looking for ways to grow within your company - especially helpful if you need to add a second-in-command who can take over some of your daily management decisions. You can gauge a potential hire’s ambition during screening of CVs and at interviews. Look for CVs that show a track record of advancement within the same
company – these shows s/he has been ambitious in the past. Secondly, ask the candidate “Where do you see yourself in five years?” to not only identify ambition but also their career plan and goals and if they align with your business. As the business grows, such employees are assets to your team and not a threat to challenge you as a business owner.
4.
Proficient in multi-tasking In order to survive and grow, small companies operate in fast paced and often challenging environment. This means your employees should be able to comfortably wear many different hats and perform a variety of tasks in order to succeed in this environment. Scan CVs of people who have worked in small organizations before if you need capable multi-taskers. Also, during your interview process, ask potential hires for examples of successfully managing multiple projects simultaneously.
5.
Employees who is Easily Likeable and able to Work in a Team A team work culture is a key to success of your company. Working in a small company means employees can’t avoid each other. It is important to hire employee who easily relate and work with co- workers. As a business owner, aim to hire a mix of individuals; including those with bubbly personalities and those with calm, quiet and laid-back attitudes. You can also try people out before you bring them in through short term contract. This will allow you both to assess that this is a mutual fit, as you can be able to evaluate the person’s level of commitment, attitude, work ethic and overall fit in your company.
When you hire candidates who respond well to positive reinforcement, be sure you can give them what they need to stay motivated
6.
Employees who Bring Different skills other than those that you have Having employees who are exactly like you can be disastrous. As a business owner, realize that your own blind spot can be your worst enemy. Have you ever narrowly escape with a business disaster because you missed something important? It could be a decision on product, marketing or strategic direction among others. To make your business more robust, hire employees who can bring something to the table that you don’t have. It could be a different personality, experience in a related industry or simply a novel approach to solving problems.
7.
Employees who are Happy to be recognized People who prefer to operate within set structures of time are not the best hires for small companies. They rarely go an extra mile beyond what is in their contract, and in most cases work from 8am -5pm. Look for CVs for candidates who have earned awards at work or at school, and ask how the acknowledgements impacted their work. When you hire candidates who respond well to positive reinforcement, be sure you can give them what they need to stay motivated. These will be your most loyal employees.
You many not find all these traits in a single employee, but you need to build a team that includes majority of these qualities. Additionally, before making a hiring decision consider taking an extra effort in reference checks. This could save you from having to rehire for the position in a few months when you learn that the employee lied on the job as well as on the CV. Also, listening to your intuition, especially if you can’t put your finger on what’s bothering you about a potential candidate, who seem perfect but for some reason, you hesitate to hire him, don’t make the hire. Perminus Wainaina is the Managing Partner & Head of Recruitment at Corporate Staffing Services Ltd. Email. Perminus@corporatestaffing.co.ke.
November I 2016 Edgemagazine.co.ke
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Creative Industry
By demas kiprono
Unlocking The Full Potential Of The Creative Industry Through Legislation
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dispute has arisen between the Kenya Films Classifications Board and the creative industry over the introduction of proposed amendments to the 1963 Films and Stage Plays Act. On the face of it, the proposals threaten to reverse freedom of expression gains guaranteed under the Constitution. Interestingly, the amendments go beyond classification of films and playsto include regulation of internet service providers, online users, bloggers and publishers.
In the last two years, KFCB has been accused of overstepping its mandate by going beyond classification of films and plays and moonlighting in other areas such as advertisements, event planning, You Tube videos and NETFLIX and news coverage of protests.
Stakeholders thus view the bill as an attempt by the Board to legitimize its past actions especially since the KFCB has admitted that the document was not based on any policy document. Amidst all this, the crux of the matter is, what should a good film and plays policy in the contemporary audiovisual environment include?
First, a film policymust adhere to the dictates of the constitution and international conventions that Kenya is party to regarding freedom of expression. Article 33 (1) (b) of the Constitution enshrines freedom Edgemagazine.co.ke I November 2016
A good film policy framework must be realistic, clear and concise
of artistic creativity and part 2 of the same lists provides situations that free speech does not extend such as incitement to violence, hate speech, vilification of others and advocacy for hatred. Limitations as per Article 19 of the International Covenant on Civil and Political rights, which Kenya is party to includes limitations for purposes of protecting the rights and reputations of others, national security, public order, public health and morals.
For KFCB to rely on the need to protect ‘national values’ and ‘public morals’, laws must explicitly define what the two phrases mean in the application of the law. Luckily, Chapter 10 of the Constitution lists down Kenya’s national values. Public morals are not defined and thus rely on individual interpretation. Second, a good film and plays policy should adopt best practices that encourage film and theatre production. The policy should lay ground for timely issuance of permits, reasonable permit fees, and realistic penalties for well described offences.
KFCB’s proposed law ostensibly espouses best practices for the censor, not the creator. In Clause 26(1) for instance, the power of the police to enter a film set, stop filming, confiscate and destroy film material without a warrant has a chilling effect on the freedom of artistic creativity. The shift from regulation by classification of films and plays to regulation of creation demonstrates that the state does not appreciate great economical advantage and potential of a thriving creative industry.
In fact, the state should borrow a leaf from Nigeria whose film industry has grown exponentially and employed millions because of minimal interference by way of regulation.!n the USA for instance, the creative industrygeneratesabout $294 billion (29.4 trillion Kenya shillings) to California’s economy. This is enough money to cater for our Kenya’s budget for about 15 years. Third, an effective film policy in the contemporary creative and technological landscape is mindful of the fact that regulation, where necessary, in the areas where it is attainable, should not be dispensed in an arbitrary manner. Regarding regulation of Internet Service Providers, if it is at all necessary, The Ministry ICT isbest placed to engage on how to constitutionally take down illegal content. Clause 39 of the proposed law provides that if an ISP does not take ‘reasonable steps’ to prevent the use of their services for hosting or distributing pornography, radicalization materials…it is liable of conviction to a fine of two million shillings or to a term of imprisonment not exceeding two years or both’. This indicates that KFCB desires or sees it fit to monitor every Kenyan’s online presence.
Fourth, a good film policy framework must be realistic, clear and concise. However, as it stands, neither KFCB nor the Kenya Film Commission has a policy framework that clarifies issues and objectives.It is this policy frame-
work lacuna that has made it possible for KFCB to propose a repugnant draft that would requiresindustry players to tailor-make their works to the board’spreconditionsand notions of morality for any script to be approved for production. In May 2014, actors and film makers celebrated when the Communication Authority of Kenya made it mandatory for all TV stations to air 40 per centlocal content. This trend was furthered when, in Novemberof the same year, the president issued a directive that relaxed bans on artwork and graffiti on PSVs. This signaled that the state was cognizant of the potential of the creative industry, a welcome move meant to placate many years of state neglect. KFCB’s proposed law is thus a complete roll back meant to stifle progress and free expression by attempting to regulate creativity. Despite publicly agreeing to shred the draft bill at a stakeholders meeting in Nairobi on 11th October, 2016, KFCB has indicated that it would nonetheless engage other stakeholders, especially, religious leaders who have in the past praised KFCB’s interventions and were in the forefront of the crusade to reject the Constitution of Kenya 2010.
Like Mutua, some religious leaders believe that they have a monopoly on morality, and like him, they are likely to endorse a law that would deny Kenyans from films, plays and other forms of expression that cover divergent views. Religious leadersare in fact bona fide stakeholders in all issues affecting Kenyans. However, they are not the core stakeholders with regard to films and stage plays and the creative industry at large. Consequently, the views of producers, script writers, actors and crew are most important because any resultant law will have far reaching consequences on their trade. In the same breadth, I highly doubt that the Attorney General consulted script writers, producers and actors when he was developing the Religious Societies Rules following widespread scandals in our churches. Going forward, the Cabinet Secretary for Sports Culture and Arts should take charge to ensure that the process is guided by prevailing realities, stakeholder consultation and international best practice in the endeavour of realising a law that will unlock the full potential of the creative industry.
The author is an Advocate of the High Court of Kenya and Senior Programmes Officer at ARTICLE 19-Eastern Africa. demaslaw@gmail.com
November I 2016 Edgemagazine.co.ke
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Infrastructure
From A Great Past To A Greater Future By martin dias
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ravelling from Mombasa to Nairobi is soon going to be something to look up to. Thejourney that took us close to twenty four hours will be reduced to four hours, what a relief and a cause for excitement. I can visualise Kenyans queing to take their first ride on this train the moment the doors open. After waiting for close to a centuary, the Standard Gauge Railway’s first phase is expected to be completed by June 2017. What makes this railway line more enchanting is the tremendous opportunities that will open up to the business community. We expect to see a sharp drop to cost of transportation and similarly an incease in travel numbers.
Standard Gauge Railway is so far one of the country’s long-term economic agenda and the biggest infrastructure project to ever be initiated in the country since independence. This mega projectis estimated to consumeKsh327 billion by the end of its completion in June 2017 and in return create immense opportunities to this country and beyond. This projectis not an ordinary infrastructural project but a vital means which is meantto simplify transport operations across the borders besides benefiting the economy of Kenya and the neighbouring countries.
Fundamentally, this project is a significant turnaround to the entire transportation sector and a key enabler of this region’s growth through the advancement of our ability to efficiently move goods and services across East Africa Community,as well as eliminating most of the logistical challenges that hinders the expansion of the regional trade and investment. Edgemagazine.co.ke I November 2016
The SGR will no doubt unleash the potential of our country and thiscalls for positivity and readiness to invest among the business community. Whatwe need to realise is the possible opportunities that will come with the completion of the SGR and strive for an enabling environment that will attract potential investors from all over the world.
Most of the developed countries can testify of the impact of infrastructure as a key vehicle that drives development apart from being a significant economic enhancer,and I am optimistic that the SGR will likely lead to a remarkable contribution to this sector and be handy in overcoming the effects of many delayed businesses by the local business community. In China for instance, development of infrastructure forms the key focus for the government as a significant economic development initiative. This development has given China mileage as a country leading to great progress that has continued to present great opportunities to the country’s citizens.
Even with this kind of development and economic progress, the country is set to add in major inflow of infrastructure projects. All in all Kenya is not far from attaining this significant mileage, the country is on a positive growth path, according to a report by Think Tank published on secondJune 2016 on the Daily Nation,‘Kenya is one of the prosperous countries in East Africa.
This report further notes that the country has maintained a lead in personal freedom, entrepreneurship and opportunity. What more drives a country than freedom to transact business and readily available opportunities? The ground is already laid out for immense growth that is ahead of us. Will the standard gauge railway become a nerve system to the economy? Infrastructure investment go a long way to solving several pressing challenges, and I will admit that the SGR has come at a time when we needed it the most and I believe it will be of great importance in sprucing economic growth in our country.
The impact of transport goes well beyond its share of economy as it serves as an intermediary service to all sectors and is therefore critical to economic growth and poverty alleviation. And we are anticipating that this project will spearhead overall productivity growth and stabilize sectors that have been lagging behind as a result of poor infrastructure. I am positive that the same will translate to raising the living standards of Kenyans.
One expectation of many Kenyans and especially those in the business is to access adequate, effective and efficient services at the least cost. And it’s no doubt this has already been sorted with the government’s plan of purchasing 56 trains with a capacity of 1,096 people and moving at a speed of 80 kilometres per hour. Kenya has come from far in terms of infrastructural development and it is encouraging and especially to my fellow entrepreneurs to see the country making tremendous steps towards becoming an infrastructure powerhouse.
Our transport sector is showing up good signs of growth and if taken further fast, the contributions from this sector will be eons ahead of park.
Statistics from Kenya National Bureau of statistics indicates that the contribution GDP from the sector has been increasing incredibly, In the third quarter of last year, transport sector contributed 71,686 Kes million to the Gross Domestic Product, this figure had a notable increase from 65,399 Kes in the second quarter of the same year.
The geostrategic significance of the standard gauge railwaywill likely push this figures further, as other vital sectors in the country such as manufacturing, trade, tourism, agriculture ,industrialisation among other key sectors will benefit bigtime. Opportunies created by the Standard Gauge Railway Transport is one of the main pillars of the economic recovery effort. This sector has immense contribution in various areas. In this regard the Standard Gauge Railway will be paramount in ;
One is national cohesion, people from various parts of the country will be able to come into conduct more easily.Kenyans from different parts of the country are expected to utilise this project and I am positive this will be one uniting factor that will eliminate tribalism and instead embrace diversity in our esteemed country.
Secondly,the high magnitude of the impact has so far yielded notable increase in the sourcing of local material including cement, steel and cables with local subcontracted companies taking the centre stage in drainage and security services in the on-going construction of the SGR,and we are anticipating all the factories build as a result of the SGR will with time develop to mega factories that will manufacture enough goods for us and the neighbouring countries. Thirdly,we are expecting the areas along the railway to grow fast to bigger counties and cosmopolitan cities.
Further,it is undeniable that the economic viability of the project is being projected early as we have a good number of Kenyans working on the site,however we are anticipating for more job opportunities. On his side the president assured Kenyans of more jobs creation, this the president said will be accomplished through creation of industrial zones along the entire railway corridor. Fourthly,the SGR will create room for free flow of goods,for some time now, the port of Mombasa has been experiencing congestion leading to delay of goods and services, however I want to believe the
It is crystal clear that this flagship project has come at a critical time when the country needs it the most, and we are eargerly waiting to see more opportunities openening after the completion of all the phases. completion of the SGR will bring in a new dawn.
Moreover, more individuals and companies will as well benefit big time in as far as the management and operation of the locomotives is concerned.
As we are speaking, we have road construction engineers in the making,some of our students are already training in China, this is encouraging and at the same time paramount. The skills and tech-know how acquired by these great minds will be of great assistance in management, maintenance and operation of the Standard Gauge railway and other projects in the future. This is a dynamic world and as time elapses, people’s needs and requirements change too. This dynamism makes us believe the paradigm shift of the SGR is a new transformation that will give Kenya a mileage.
It is crystal clear that this flagship project has come at a critical time when the country needs it the most, and we are eargerly waiting to see more opportunities openening after the completion of all the phases. After reading this article you will agree with me that this project is fundamental to the local and the international communityand has come at a critical moment when the country is working hard and looking forward to increase the percentage growth rate of the country. The writer is the Group CEO-FAPCL Group. Email: md@fapcl.com
November I 2016 Edgemagazine.co.ke
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Finance and investments
By Michael Obuya
Green Bond: A Financing Alternative for Environmental Friendly Projects
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nvironmental change has become a critical issue globally with world’s superpowers led by the United States of America and mediated by United Nations Environmental Programmes (UNEP) weighting on possible solutions to mitigating or adapting to climate change. Kenya like other environmentally conscious countries identify financing alternatives to support actions aimed at mitigating and adapting to climate change. Green bond is one of the financing alternatives that has proved useful world over and needs to be embraced by Kenya in financing sustainable development projects.
What is Green Bond? A Green bond is a class of debt instruments like conventional bonds that promise fixed or variable returns to investors over the life of the bond and whose proceeds are solely used to finance or refinance green projects. The funds received from green bond holders are earmarked for investing in sustainable development projects. The green bond is a debt instrument of which investors lend funds to an entity that in turn uses the money for specified period of time at fixed or variable interest rate to finance green projects.
Green Bonds Types Currently, four green bonds types are being offered on the global market. The first one is the Green Project Bond where an investor faces credit risk from the inherent risk of the project (s). The proceeds are invested with or without potential ‘recourse to the issuer’ (if the principal is not returned to an investor in full, the investor can recover unreturned principal from the issuer), recourse is to the project’s balance sheet. The Edgemagazine.co.ke I November 2016
1.8 trillion KES
When the green bond is finally issued, it will add to the Kenya’s outstanding corporate and sovereign bond of about 1.8 trillion KES including EURO bond
Entreprenuring individuals should identify qualifying viable business ideas and projects to take advantage of the cheap green financing to be introduced in Kenya
second is the Green ‘Securitized’ Bond which is secured against one or more specific projects grouped together. The third is the Green ‘Use of Proceeds Revenue’ Bond which is without recourse to the issuer. Bond is backed by the pledged revenue stream of projects. The use of green bond sale proceeds is channeled to related or unrelated green project(s). The fourth bond is the Green ‘Use of Proceeds’ Bond whose sale proceeds are exclusively for green projects and are secured against issuer’s entire balance sheet. The bond has a standard recourse to the issuer.
Operation of Green Bonds Like conventional treasury and corporate bonds, green bonds are issued by governments, municipalities, multi-national banks and multinational companies’ .The issuer of the green bond guarantees to refund the bond price at maturity of bond plus either a variable or a fixed rate of interest on the bond (Coupons) . The returns from the bond are usually tax exempt in a number of countries. The bonds are risk-weighted and credit rated based on the credit worthiness of the issuing entity. A green bond holder can trade the bond in the bond market segment of stock exchange market for instance NSE when the green bond is finally issued making the debt instrument liquid. The Place of Green Bond at NSE Global issuance of green bonds stood at 46 billion USD in 2015 according to Bloomberg New Energy finance. It is expected to rise to about 55 USD in 2016.Though there has been tremendous growth in green bonds, it still commands small proportion of the global overall bonds market which stood at 93 trillion UDS at the end of 2015.Hence there is still a great potential for the green bond market to grow and expand. Kenya should also partake in this endeavor by issuing the green bond at the NSE as early as it is practically possible. South Africa is leading in Africa in terms of Green Bonds issue at the stock exchange. South Africa’s city of Johannesburg raised a 142 million USD municipal Green Bond that targeted clean development projects. The World Bank’s International Fiancé
Corporation (IFC) also issued a 9 year 1 billion Rand green bond via the Johannesburg stock exchange. Currently, Kenya is in talks with international investors to make arrangements for the sale of the country’s first ever Green bond at the Nairobi Securities exchange. The stakeholders, including CBK, CMA, KBA, National treasury and NSE, are currently working on regulations needed to trade the security at the NSE. When the green bond is finally issued, it will add to the Kenya’s outstanding corporate and sovereign bond of about 1.8 trillion KES including EURO bond as at October 2016.
Viable projects for green financing The issuers of green bonds are expected to direct the proceeds to finance clean and sustainable development projects. Kenya Bankers Association plans to issue the first Green bond to be marketed abroad to mobilize cheap funds. The sale proceeds are to be loaned to individual commercial which are members of the association who are in turn expected to loan the funds to individuals or businesses involved in green projects in such sectors as energy, transport, agriculture, infrastructure and building, water and waste management and urban planning.
The viable projects to benefit from green bonds financing are those that are carbon neutral that project that cuts on the production of carbon into the atmosphere. The projects may include geothermal plants, wind power plants, biogas plants, solar energy, energy efficient building, mass and rapid transport, clean transport like electric cars, waste and water recycling plants, organic agriculture, protection of water catchment areas est. Parting note Entreprenuring individuals should identify qualifying viable business ideas and projects to take advantage of the cheap green financing to be introduced in Kenya. The Author is a Lecturer of Finance and Economics at Mount Kenya University School of Business. Email: Obuyamike@gmail.com
November I 2016 Edgemagazine.co.ke
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Real Estate
Interest Cap Law Calls for Innovation From Housing Developers By Ian Henderson
Superior Homes has recently introduced a novel payment scheme called Buy Over the Long Term (BOLT). The buyer pays an agreed sum of money as a deposit and then regular payments to secure a house at Greenpark Estate.
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n the face of it, the recent rates cap legislation is good news for borrowers because reduced interest rates will result in lower repayment instalments for loans. The good news is dependent on loans being granted in the first place and, as banks come to terms with the new laws and begin to figure out their impact on business, there is no doubt about one of the key outcomes – for most of us loans will be harder to secure. The reasons are clear. Banks will focus on protecting profits and to achieve this objective with a reduced income and margin it is clear that costs must be reduced. I predict that there will be a wide ranging efficiency drive within the banking industry during the next year or two where staff will be expected to be more productive, salary growth will be slowed down and administrative and financial costs will be analysed and reduced.
One key financial cost is incurred from non-performing loans where the borrower is unable to meet loan repayments and banks spend time and money following up on debts, appointing lawyers, and, as a last resort, trying to recover and resell assets. Since 2011 non-performing loans (loans more than 3 months in default) have been on the increase and they now account for more than Kshs 80 billion of borrowings or 6 per cent of all loans. As it is no longer possible to increase the spread rate between the cost of money to the banks and the cost of the loan to the borrower to offset the costs of non-performing loans, there will be a drive by the banks to reduce the incidence of default. This will be achieved by reducing loan to value ratios and through the introduction of stricter lending criteria for successful applicants.
Edgemagazine.co.ke I November 2016
Buying a house usually involves taking a loan and often the loan will be from a bank or a similar financial institution. The budget and therefore the house location, size and amenity will be determined by the sum of available funds plus the loan, which will be an amount of money that can be repaid comfortably from income. While the recent introduction of the loan interest cap may be good news for borrowers who meet amore stringent loan qualification criteria, it is bad news for those who do not because they are effectively blocked off from obtaining a mortgage. This process reduces the pool of potential buyers which in turn lowers the number of houses sold.Developers must therefore bring innovative financing schemes to the market in an effort to keep house sales moving. Superior Homes has recently introduced a novel payment scheme called Buy Over the Long Term(BOLT). The buyer pays an agreed sum of money as a deposit and
then regular payments to secure a house at Greenpark Estate with a date of entry some two or three years into the future. The total cost of the house is fixed at the start of the agreement using a formula based on the amount of deposit and the payments. BOLT is very flexible and each purchase can be tailored to the buyer’s own circumstances. Some buyers have no deposit while they can afford substantial monthly payments, others have seasonal incomes and some may be planning to sell a property in the next year or two.
BOLT effectively by-passes the bank and all of the attendant costs which reduces costs to borrowers. Such a product is also suitable for buyers who may not normally qualify for a loan. Introduction of such packages could help developers maintain a stream of customers despite the expected drop in mortgage buyers.
Ian Henderson is the Managing Director at Superior Homes Ltd
November I 2016 Edgemagazine.co.ke
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Transportation
Online Cab Hailing Service-Uber Woo Drivers With Juicy Deals Uber is committed to offering the people of Kenya a new way to work, on their terms, and in doing so boosting the incomes of thousands of Kenyan families who need it most. By Special correspondent
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ince its launch in 2009 to help people get a ride at the touch of a button, Uber has grown over the years to make over two billion trip, empowering individuals and businesses and soling even greater challenges such as reducing congestion and pollution in cities globally. The Uber network is now available in over 475 cities in over 75 countries spanning 6 continents. To request a ride, users must download the free application for Android, iPhone, Blackberry 7, or register for Uber at www.uber.com/go.
In Kenya Uber connects tens of thousands of people to safe, reliable and affordable transport. It has travelled approximately 9 million kilometres since its launch in Kenya, opening up economic opportunities to individuals and businesses.By May 2016, Uber had made its millionth trip in Kenya and enabled over 1,000 economic opportunities. Uber has allowed people who have never considered driving for a living to use the platform to become their own boss, to work flexibly and make money to achieve their goals and support their families. As a driver-partner, one can look forward to the following:
Be your own boss Driver-partners have the freedom and flexibility to drive whenever the feel like. The app gives one an opportunity to set their own schedule with no minimum operating Edgemagazine.co.ke I November 2016
Uber Communications Associate - East Africa, Janet C. Kemboi reviews the Uber app on her phone during a press briefing where the company announced a price cut to benefit Uber riders and driverpartners in Mombasa . Looking on is Kagure Wamunyu Operations Lead - Uber Kenya. The move is set to see residents and visitors enjoy more affordable rides in Mombasa.
time. It further allows individual who own their own transportation companies to connect with their driver via the app, thus growing their own small businesses. With drivers on the move, they will spend less time sitting idle which means they are able to make maximum returns-more money.
Nate Anderson, General Manager for Uber East Africa explains, “With a significant portion of partners being previously unemployed, we’re proud that the Uber platform enables driver-partners to not only be their own bosses, work at their own hours and set their own targets, but also to make a good living for themselves and their families.�
Uber is committed to offering the people of Kenya a new way to work, on their terms, and in doing so boosting the incomes of thousands of Kenyan families who need it most. Increasing capacity Driver-partners are equally important as any other partner. As such Uber is committed to equip drivers with skills they need to run their own businesses. Such skills include but not limited to operating the platform, guidance for efficiently using a smartphone, GPS and navigation controls, best health and safety practices, email systems and tips on how to improve service to riders.
Helping grow your business Uber makes it easy for riders to enjoy affordable and safe transport. In this spirit the firm has further partnered leading corporates to provide driver-partners with a credit facilities helping them get started with their businesses. Such involves a partnership with Sidian Bank for a 100 per cent financing deals on vehicles priced between Kshs 1-1.5 million to qualifying driverpartners. The loan can be repaid for up to 36 months at an interest rate of 8 per cent. The drivers also receive 3.50 KES off every litre of petrol every time they fuel their cars at Total petrol stations, discounted servicing of vehicles at Auto Express and affordable car washes at 24HR Car Wash limited. All inclusive Uber platform is open to all who want to use the app to increase their chances for profit. Uber is committed to work with them in making decent income and building their businesses.
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Competitive pricing to the benefits of drivers and riders alike Uber has embraced price-cuts globally with statistics showing drivers are getting more trip as they spend less time waiting for the next customer. So far, the pricing has doubled the number of first-time users, showing that the low-prices are attractive to even more people. November I 2016 Edgemagazine.co.ke
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MKU @ 20
Varsity to move into own building in Kagarama, consolidating its three campuses
Mount Kenya University Rwanda Set for Inauguration This November
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ovember 2016 will see the inauguration of Mount Kenya University Rwanda in Kagarama, Kicukiro District. The ceremony will be held at the university’s brand-new complex in Kagarama, a landmark edifice with stateof-the-art lecture facilities, laboratories, offices and equipments worth billions of Rwandan Francs.
The inauguration is a key step towards the establishment of a locally chartered varsity with independent governance structures from its parent, Mount Kenya University (MKU) in Kenya. The MKU Board of Directors has tapped Distinguished Professor John J. Struthers from the University of the West of Scotland (UWS) to be the Chancellor of Mount Kenya University Rwanda (MKUR). He is currently the Director of the Centre for African Research on Enterprise and Economic Development (CAREED) at UWS. An accomplished researcher and scholar, Prof Struthers boasts of numerous publications, among them a book titled, “Money: Institutions, Theory and Policy.” In addition, he has attracted over $100,000 in grants and funded projects.
Edgemagazine.co.ke I November 2016
Prof Struthers will be instrumental in navigating MKUR to greater heights in academics, governance and international collaborations.
Dr Prudence Ngarambe, a Doctor of Philosophy in Political Science and Security Studies graduate of Salve Regina University, Newport, Rhode Island, USA, has been tapped by the MKU Board of Directors as the Mount Kenya University Rwanda Chairman of Council designate. Once in place, the University Council will engage stakeholders in creating opportunities for resource mobilisation and synergies for global collaborations to implement experiential learning and teaching. To enhance the international quality of education, the university will maintain strategic affiliations through Memoranda of Understanding (MoUs) and strategic partnerships.
The quality offered by the university will be guided by International Quality Standards. Tremendous growth Mount Kenya University (MKU) has been operating an
The infrastructure that will be ready after the first phase of construction will give the university the capacity to train
7,000 students over and above the current population
Both Greif teams and PFC with Mount Kenya University students and lecturers on MKU main campus.
off-shore campus in Rwanda since 2010. Since then, the institution has undergone tremendous growth. The MKU Board of Directors has been following global higher education developments in general, and specifically those in the Eastern Africa, and is now convinced more than before that operating a full-fledged institution of higher learning accredited in the system it is serving is more relevant than running a campus operating on cross-border basis.
It is against this background that the proposed Mount Kenya University in Kigali is dedicated to bringing quality, relevance and affordability to the population of Rwanda and beyond. MKUR opens its doors to support national development and reconstruction with the philosophy that rapid advances in health sciences, science and technology across a wide range of disciplines provide great potential for countries to accelerate and strengthen their economic development. MKUR is the outcome of sustained investments in infrastructure and other
learning resources. It is also a response to Rwanda’s unmet demand for human resources to help drive the nation to its desired destination: a bright future for its people. Ultra-modern facility The MKU Board of Directors invested nearly 4 billion Rwandan Francs in constructing an ultra-modern facility in Kagarama, Kicukiro District. The facility will accommodate at least 5,000 students by the end of this year. The last six years have marked a huge milestone for the university. In 2011, student enrolment stood at only around 1,000. To date, the university has over 3,000 students in three locations, namely Kicukiro, Camp Kigali and Town campus.
From its humble beginnings, the institution has, in less than a decade, attracted and trained thousands of students. Some have graduated and are making their mark in society. Others are still undertaking their studies in various faculties.
MKU is making deliberate efforts to improve access to higher education in Rwanda. It is committed to investing in the country, especially in the areas of science and technology. The university has also invested heavily in IT and modern science laboratories at the Kicukiro centre.
Furthermore, plans are underway to construct additional infrastructure in preparation for the transformation of MKU’s Rwanda campus into a university. The construction will be in phases, with the first phase scheduled for completion by the end of this year. The infrastructure that will be ready after the first phase of construction will give the university the capacity to train 7,000 students over and above the current population. Phase Two will expand the university’s capacity by a further 3,000.
The legal process for the granting of government permission to establish the university is ongoing. The Government of Rwanda has been highly supportive of the idea, just like it has supported the MKU Kigali Campus. November I 2016 Edgemagazine.co.ke
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Energy Conservation
Chris Mbori won the Young Professional Energy Engineer 2016 at the World Energy Engineering Congress in Washington DC. He was feted for his innovative energy initiatives and projects spearheaded by his company Eenovators. The 30 year old engineer graduate from Moi University had a one-on-one session with Caroline Gathuru on what account for his successes and why energy transformation excites him. The following is an excerpt of the conversation, edited for length and clarity.
Taking Charge of Energy Transformations in Africa
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hat does winning this award mean to you? It means a lot to me that our efforts to promote professionalism, innovation and integrity in the energy business are being recognized. This award is a testament of the efforts that my team members at Eenovators are making, towards energizing the world through innovative solutions.
You are a CEO at 30; tell us how you’ve been able to achieve this? I cut a niche for myself. Over the years,right from when I was still Moi University studying engineering, I had been observing the energy industry and I realized that there was great untapped potential here in Kenya and in the region at large. Energy management in this country holds great potential for interventions for change. I have surrounded myself with powerful mentors and I have also been a mentor to many others. It is by having a great support system and an incredible team that I have been able to come this far.
Edgemagazine.co.ke I November 2016
Engineer Mbori posing with the award.
The key driver of the Kenyan energy industry has been the regulations by the Energy Regulatory Commission.
Tell us more about that. The key driver of the Kenyan energy industry has been the regulations by the Energy Regulatory Commission. As a result of these regulations, Kenya has made great strides in energy management and renewable energy with organizations being required to implement energy efficiency initiatives after conducting an energy audit.
What has the role of the Association of Energy Engineers, who facilitated the awards, been in shaping the energy industry in Kenya? The Association of Energy Engineers has an affiliate known as the Association of Energy Professionals in East Africa (AEPEA). AEPEA was established to strengthen the capacity of energy engineers in the country so as to meet the growing demand as informed by the recent dynamics in the energy sector. Seeing as the industry is growing and the power demand increasing, bringing together energy engineers for professional development is very crucial and that is the mandate of AEPEA.
Kenya shone brightly at the World Energy Engineering Congress ahead of all other countries in Africa. Why is that? Yes indeed we did. The strides that Kenya has made over the years in the energy sector are drawn from the country’s implementation of very stringent energy regulations. These regulations have compelled both the public and private sectors to innovatively pursue and implement energy sustainability initiatives. Kenyans are also naturally wired for excellence and pursue positive involvement in developmental initiatives.
For instance, the Energy Management Regulations 2012 requires all designated facilities to carry out an energy audit every three years, and to submit audit reports and implementation plans to ERC for approval. This has significantly raised awareness on the need for organizations to be conscious to their energy usage and to implement energy saving measures to lower costs and increase profitability. What strides is Kenya taking in renewable energy sector? Kenya has for a long time relied on hydropower and other non-renewable sources of energy. However, the past 10 years have seen the focus on the renewable sources such as wind, geothermal and solar energy generation effort amplified. These efforts were recognized during the World Energy Engineering Congress with the 280 MW Olkaria Geothermal Power Plant awarded as the Innovative Energy Project of the Year in Sub Saharan Africa.
The Energy Regulatory Commission has played a major role in ensuring Kenya stays ahead of the pack in Africa.
What contribution is your company Eenovators making in the energy industry? Eenovators was established three years ago with a view to offer innovative and reliable energy efficiency solutions across Africa. We focus on offering reliable opportunities to resolve energy challenges, through energy conservation strategies that ensure sustainable outcomes for our clients. We are taking charge of energy transformation in Africa, and I am deeply honored to be part of this revolution.
We focus on offering reliable opportunities to resolve energy challenges, through energy conservation strategies that ensure sustainable outcomes for our clients
As a family man, how are you able to balance running a company and being a husband and father? My family is what inspires me to do what I do. My wife has been my greatest support and we work together at Eenovators. Our daughter is the star in our lives. She inspires us to want to do more for the world. I am also able to balance my work and life because of the great support from my team at Eenovators. Your parting shot? Energy is fundamental part of human existence. We have all been mandated to conserve the future of mankind through energy conservation. Let’s all play our part in ensuring that energy is available for future generations. I believe that this award is just but a milestone in our continuing journey to foster great partnerships that will benefit the energy industry and foster sustainable development. Caroline Gathuru is an accomplished brand specialist, marketing strategist and founder of LifeSkills Consulting. She is an ardent customer service practitioner with over 15 years experience. Email: cgathuru@life-skills.co.ke
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Financial Services
Sanlam Kenya Train Its Sight On Better Wealth Creation After Rebrand We have a deep understanding that wealth does not come easy – it comes from hard work and dedication and we take our role in this process extremely seriously financial planning, retirement, trusts, wills, short-term insurance, asset management, risk management and capital market activities, investment and wealth.
Rebrand to Sanlam The Board of Pan Africa Insurance Holdings Ltd, has took this conscious decision to rebrand to Sanlam Kenya as part of its long-term business growth strategy. Over the last few months, PAIHL has formulated and adopted a robust business strategy aimed at providing enhanced shareholder and customer value. This strategy is aimed at positioning the PAIHL Group, as a leading comprehensive financial services company in Kenya by the year 2020. This will be achieved by aligning its growth to the most promising segments in the economy, and diversifying our offering to wider customer solutions, delivered in the most efficient way and underpinned by excellent service.
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Overview of Sanlam anlam is a leading financial services group listed on the Johannesburg and Namibian Stock Exchanges. Established in 1918 as a life insurance company, the South Africa-based Sanlam Group has transformed into a diversified financial services business. The Group now operates in East Africa through Kenya, Tanzania, Rwanda and Uganda; Southern Africa through Botswana, Malawi, Mozambique, Namibia, Swaziland, Zimbabwe and Zambia; West
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Africa via Nigeria and Ghana and in India and Malaysia. It has an indirect presence via associate companies in Burundi, The Gambia and Lesotho. The recently announced acquisition of a 30 per cent interest in Morocco-based Saham Group will further extend the Group’s footprint into an additional 20 countries mostly in Francophone Africa. The Group also has business interests in the United Kingdom, the USA, Australia and the Philippines. It has a stake in leading global microinsurance specialists, UK-based MicroEnsure Holdings Limited. The Group’s areas of expertise include insurance,
The group will therefore make significant investments in re-designing the organization structure and moving towards an integrated target-operating model. The main objective of the plan will be attainment of operational efficiency by integrating core support functions at the group level and disseminating associated costs and benefits in a manner that exploits the full potential of opportunities across the group, delivers seamless service, reduced costs and improved profitability. For this reason, the rebrand to Sanlam Kenya is but a culmination of efforts to accelerate the implementation of a fiveyear business strategy. The rebrand to Sanlam Kenya provides the organization with a step change platform to revitalize
component. Ultimately, this will also be beneficial to Kenyan importers who under the current practice have limited recourse if anything happens to their imports before they arrive in the country.
Sanlam Kenya Group CEO, Mugo Kibati.
and adopt a new corporate culture aimed at delivering a differentiated customer experience.
As an organization, priorities have not changed. However, the corporate strategy has been fine tuned to meet prevailing market conditions while enhancing shareholder value.The rebranding exercise is also aimed at giving the group and all the business units a single identity and renewed focus on what matters most to all stakeholders. This rebrand, also affords PAIHL an opportunity to deliver a wider range of products and services through the support of Sanlam Group which is Africa’s largest financial services provider.
Strategic direction Under the Sanlam brand, PAIHL will enjoy access to World Class Standards (Customer experience, Products, Processes, Systems) and will operate under the ambit of a bigger, better, and stronger parent company. This will also enable PAIHL to enjoy greater expertise and technical resources with the added credibility and reputation that comes with such brand association. In this market, Sanlam Kenya is a composite insurer with a diversified financial services delivery capability.
Essentially, a non-bank financial services supermarket, providing life assurance, general insurance, health, bancassurance and asset management services.
PAIHL hopes to rollout a full menu of new and enhanced Sanlam financial business services including life assurance, general insurance, banking, credit, health, bancassurance and asset management products. It shall also be tapping heavily into the Sanlam Group capacity to provide specialist solutions including maritime, cargo handling and related asset management solutions; locally and seamlessly beyond our borders. Indeed, Sanlam Kenya supports the proposals earlier raised by National Treasury Cabinet Secretary Henry Rotich. During his budget speech, Rotich confirmed that efforts are underway to facilitate the review of Section 20 of the Insurance Act to expressly prohibit placement of “Kenyan Business” with non-Kenyan or foreign insurance markets except under certain circumstances. This move will help benefit the local insurance industry that has been losing heavily as, imports into Kenya continue to be on a Cost, Insurance and Freight basis instead of Cost and Freight basis which will allow local insurers to pick the insurance
Customer centric At the centre of the rebrand exercise is a commitment to remain customer focused. By fostering long- term relationships with customers, Sanlam will proactively understand their needs and tailor make relevant solutions while consistently delivering on its promises. That’s a very key brand promise that is underpinned in the Sanlam Group pay-off line - Wealthsmiths™. The pay-off line, Wealthsmiths™, is a simple description of what we do and what we believe in. “It represents our roll-up-your-sleeves, pragmatic approach to doing things, our ethos, and our appreciation for the raw materials with which we work – our clients’ money. We have a deep understanding that wealth does not come easy – it comes from hard work and dedication and we take our role in this process extremely seriously.”
Emerging trends In Kenya, like in other Sanlam Group markets, a key focus to raise insurance penetration will be centred on raising financial literacy. Poor financial literacy serves to limit insurance penetration. “At Sanlam Kenya, we strongly believe that as a good corporate citizen, the Group must continuously contribute towards Kenya’s progress. A key challenge is how more people can sustainably be lifted out of poverty by engaging them in gainful economic activity and facilitating financial literacy programmes.”
Sanlam’s own history as a group across the continent and beyond has been one of commitment to empowerment, economic advancement, wealth creation and protection. Suffice it to say that Sanlam Kenya will be borrowing heavily from its group best practices. To enable people to live their best possible lives we acknowledge that there’s need to go beyond the way we talk about money to the way financial products are structured, and how and when we educate individuals November I 2016 Edgemagazine.co.ke
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Financial Services
about savings and investing. Making sure products talk to younger, tech-savvy generations are critical. Products that keep them engaged and interested, not just in the finances but also the economy in general, and how local and offshore macroeconomic events impact on their savings and investments. “At the same time we shall be at hand to ride the wave brought about by emerging trends such as technology application for Insurance products distribution. We are also actively expanding our product lines to cover a range of innovative specialist products including Marine Cargo Insurance and enhanced product delivery through Bancassurance options.” As explained above, the Group shall work to expand the base of insurance market. This will involve focusing on demand creating marketing initiatives such as consumer education. Poor awareness of financial products including savings vehicles such as Unit trusts limits the performance of local market players. “We must therefore work on the demand creation front, to enable consumers make an informed choice when considering Sanlam Kenya. We shall also strive to deliver a differentiated quality of service. That will cut across the lead generation process to claims settlement and value added client counsel.”
The road ahead for Sanlam? The Sanlam Group across all its 34 markets in Africa continues to attach a lot of importance to information technology. For this reason, the group has capacity to deploy and rollout almost all of its products and services on digital platforms including mobile phones. Sanlam Kenya aims to adopt some of the existing mobile-based solutions at its disposal from the Sanlam Group stables. Many of these will be products that are already in use in South Africa among other markets. “In some instances, our Research and development team will also seek to customize some of these solutions to local needs. Some of these needs may include using local mobile money options to settle premiums and even claims.”
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At Sanlam Kenya, we are implementing an ambitious 5-year strategic plan that is aimed at positioning the group as a leading comprehensive financial services company in Kenya by the year 2020 That said, as a matter of strategy will also not shy away from the micro insurance market. This will also mean that we have to deploy relevant distribution tools, which invariably will end up being mobile, based due to the ubiquity of the cell phone today.
Pretty exciting times ahead. At Sanlam Kenya, we are implementing an ambitious 5-year strategic plan that is aimed at positioning the group as a leading comprehensive financial services company in Kenya by the year 2020. Aligning our growth to the most promising segments in the economy, and diversifying our offering to wider customer solutions that will be delivered to them in the most efficient way backed by excellent service will achieve this. The group will therefore make significant investments in re-designing the organisation structure and moving towards an integrated target-operating model. The main objective of the plan will be attainment of operational efficiency through integrating core support functions at the group level and disseminating associated costs and benefits in a manner that exploits the full potential of opportunities across the group, delivers seamless service, reduced costs and improved profitability. At the centre of this integration journey will be our people and distribution partners that we work closely with to attain the ambitious goals. Any other pertinent issue? Within the next five years, you can expect Sanlam Kenya to be one of the leading
non-bank financial services businesses providing value filled solutions, services and products. We hope to achieve this ambition by aligning our growth to the most promising segments in the economy, and diversifying our offering to wider customer solutions that will be delivered to them in the most efficient way backed by excellent service. We remain committed to creating and protecting the wealth of our clients and other stakeholders through innovative product offerings and employing the most efficient processes. We will also continue to adapt to the evolving needs of our client base.
The adoption of the new Risk Based Supervisory (RBS) regulatory framework is a step in the right direction. This regulatory regime provides the framework for risk based capitalization which will play a key role in enhancing existing reputational challenges that ultimately affect the wider insurance sector. There’s no doubt that the adoption of RBS by IRA in Kenya fits in well with the global benchmarks and will positively impact the local insurance sector. Facilitating the promotion of an Inclusive, Competitive and Stable Insurance Industry through the RBS has been long overdue. Already, I am aware that commendable progress has already been made on the strategic efforts to adopt RBS frameworks. Additional amendments to the Insurance Act to accelerate the transition to a risk based solvency framework and a more principle based investment framework will also be undertaken this financial year. These amendments will focus on the expansion of allowable forms of capital while reflecting the new gross premium valuation methodology across different classes of business. Sanlam Kenya has already undertaken the necessary reforms to ensure compliance with the RBS, which is also practiced in South Africa and the UK among other markets where Sanlam operates. For example, in compliance with RBS requirements, we have significantly increased provisions for outstanding claims at Sanlam General Insurance, upon adoption of a more conservative claims reserving methodology.
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Financial Services
The bank is on a transformational journey anchored on rebrand, tech, partnerships and people to be a Tier II bank by 2019
Sidian Bank: The Bank For Entrepreneurs By Entrepreneurs
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idian Bank-a full-service commercial bank providing an array of financial services to individuals and enterprises recently announced its strategic realignment, which began with a re-brand in April 2016, is on track and has started to yield positive results.
The bank, formerly known as K-rep Bank has been a leading player in Kenya’s enterprise banking sector. Sidian has a goal of creating wealth through provision of transformational financial solutions that meet entrepreneurs’ needs and facilitate growth through convenience and choice.
The strategy, which seeks to turn Sidian into a Tier II bank by 2019, is anchored on rebranding, technology, partnerships and people. It aims at moving the bank from its previous brand positioning based on segment (micro-finance) to one hinged on behaviourthe bank for entrepreneurs by entrepreneurs. Strategic direction Since the rebrand, Sidian Bank has made massive investment in technology as a driver of excellent service delivery. Thus far, is has
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Sidian Bank, CEO Titus Karanja.
Agency banking which has already been implemented with over 70 agents and continues to be rolled out throughout the country by a target of 3,000 by July 2017
introduced the SidianVibe framework that includes-an app which enables customer to transact seamlessly through mobile banking; Agency banking which has already been implemented with over 70 agents and continues to be rolled out throughout the country by a target of 3,000 by July 2017.The bank’s customers are also enjoying Visa services and an accessible 24-hour call centre. Chief executive officer Titus Karanja says the bank will lay off 108 staff out of the total workforce of 500 through a voluntary scheme. “We are employing technology to improve efficiency in place of the retrenched employees and the layoff will cost about Kshs 70 million.”
Despite announcing the layoff, the bank has invested in recruitment of top talent in the industry which
has seen a 13 per cent increase in the total workforce since January 2016. “We are further training our employees as a way of re-tooling them to be able to implement the bank’s strategy,” said the CEO. The bank, majority owned by Centum Investment has a network of 37 branches and plans to open new outlets at The Hub, Two Rivers Mall, Sameer Business Park and Nairobi’s downtown River Road.
Sidian Bank has signed up a number of strategic partnerships. This includes a Kshs 10 billion first time entrepreneur promotion program with online cab hailing service Uber. “This will see up to 10,000 Uber driver partners acquire their own vehicles through 100 per cent asset financing over a three year period,” said Mr. Karanja. It has also partnered with European Investment Bank as part of a value proposition to SMEs and will provide technical assistance for financial empowerment to customers.
A Sh 2 billion partnership with Medical Credit Fund (MCF) announced on July 2016 targets 3500 private medical services providers in Kenya. Under this, medical services providers will enjoy a loan of between KShs 100,000-Kshs 250 million to purchase or maintain their medical equipment as well as technical know-how from MCF. “Partnership for growth is one of our key focus area and we shall continue to work with various organizations on this front,” added Mr. Karanja.
The bank, majority owned by Centum Investment has a network of 37 branches and plans to open new outlets at The Hub, Two Rivers Mall, Sameer Business Park and Nairobi’s downtown River Road
“When we started on this transformative journey, it was clear that the achievement of our strategic objectives would hinge greatly on our ability to achieve an optimal fit between our staff and our business strategy. Transforming our people into the new generation of ‘bankers of the future’ is as important as transforming our products and processes,” affirmed the CEO. The bank has further embarked on a voluntary early retirement (VER) scheme, which is part of its strategic journey to
transform Sidian’s staff into bankers of the future-with superior tech skill-set, an entrepreneurial mind-set, enhanced professional knowledge and a culture that supports diversity of thought. “The scheme offers an opportunity for staff who wish to transition to other career directions to do so at this juncture,” said Mr. Karanja.
Sidian aims to remain sustainable by making changes to its business model and increasing the channels business. “Our key strength as a nimble player is ability to pivot fast and thus continue to serve our target customers.” New financial environment Mr. Karanja admitted that the new changes in the financial environment capping interest rates at no more than 14.5 per cent has completely changed the playing field for financial providers. One needs to be innovative to stay afloat. As such, Sidian will continue lending to customers who have active transactions and good track record, and that innovative customer relationships will drive access to credit. “We shall also continue lending to start-ups where there’s access to data that enables effective credit scoring and secured businesses as a basis for funding.” New reality • Existing Sidian Bank customers will enjoy products as assigned for until contractual maturity of the product. • New products for new environment are being rolled out.
• Sidian aims to seek multiple relations per customer as opposed to maximising profit from every single product. • Selected businesses are now more viable due to lower cost of credit. • There’s no distinction between large and small banks. The new differentiator is efficiency, customer experience and capitalisation.
• Products attracting new provisions and high operating expense are no longer viable
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» Arts & Culture nity to thrive in the entertainment industry. We are now a first-rated entertainment company that gives rise to stardom. What brings you to Kenya? The Kenyan film industry is quite slow but has great potential. I want to collaborate with producers and directors for capacity and professional development. I have metboth private and government practitioners and the narrative is on how to raise the creative talent in Kenya.
An exchange programme is underway between Kenya, Liberia and the WestAfrica in general.
Meet The Liberian Actor With A Penchant For Kenya’s Film Industry
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ream Debo, 37 is a renowned Liberian actor. In 2009, he made his debut film appearance in ‘Risk’- and became an instant star. He says the movie was a block-buster and received major reviews. That same year, he bagged a Liberian movie award. He recently jetted in the country. The following is an exclusive one-on-one conversation that he had with Edge Magazine. After discovering your talent, which steps did you take to up your game? I went to Ghana and then Nigeria to gain more skills since their film industry is more developed compared to Liberia. That
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was the greatest opportunity to make my name in the industry.
When did you setup Platinum Entertainment? With a wealth of experience gained, I returned home after that to manage our then small industry in Liberia. I then started Platinum Entertainment which focuses on film production and event management. I immediately secured a contract to host the same film awards that thrust me into the limelight.
Starting small, the firm has immensely grown to give young Liberians an opportu-
You featured on the Gentleman’s show, met and create networks. How was it? I would like to thank Amadou Chico, the brain behind the Gentleman’s Show for his networks and connections and how he helped me further my ideals here in Kenya. We had an interesting conversation and he linked me up to many projects here-the Kenya Film Classification Board, Nanyuki and Karura film platforms, just to mention a few.
The way forward I want to make the greatest impact in the film industry in Liberia, Kenya and beyond. Film is the next big economic frontier for Africa. Kenya is a hub of talent and creatives. But for the industry to grow, Kenyans have to support their own industry-morally and financially. In my interactions with Ezekiel Mutua, the CEO of KFCB, I have realised that a lot can be achieved if all stakeholders consolidate their efforts to promote the sub sector. What is the best movie you have ever directed? Freedom, a 2015 film thatdepicted the Liberian war.
The biggest challenge yet? Being able to create a platform that has launched a career for many people in the film industry.In 2009, movie making was sublime in Liberia to the extent that people thought it was for idlers.
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» Travel & Leisure
A Date with Nature at the Nairobi Safari Walk “A traveler without observation is a bird without wings”MoslihEddinSaadi. Words Oroni Tendera
animal orphanage and the national park, very little has been written about Nairobi Safari Walk.
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fter a 20-minute- ride in a matatu from Nairobi’s bus station, I am finally here at the entrance of Nairobi Safari walk. It is 1pm but the sun’s big eye is shut. Thick grey clouds are hanging dangerously above my head. On my left, stands Nairobi National Park’s gate, almost shadowing the view of Nairobi animal orphanage. A group of 3 foreigners, speaking animatedly in Australian accent are taking too long at the reception. One of them, aloud man with heavy make-up and feminine moves is raising eyebrows from onlookers. My patience is on trial.I am tempted to change my mind.Unlike Nairobi Edgemagazine.co.ke I November 2016
“I came here on a mission to ‘discover,’’’ I reassure myself as I force my way past the Australians, Kenyan style. The ticketing officer, lifts his face to meet my gaze. I am expecting a growl or a bark from his nononsense face. “Hallo,’’ I attempt to break the tension. “Hallo, welcome to Nairobi Safari walk. Are you a Kenyan citizen?’’ he asks ina calm voice. I nod. “You will payKsh 210,’’ he says. I display my national identity card and part with Ksh 500. Impressed by his professionalism, I ask him to keep change but he politely declines the offer. Distant lion roars and birds chirping and swooping in the air, welcome me in style. I am almost breathless and quite scared of walking on the raised wooden boardwalk. However,the further I walk, the less tense I become. I hear sharp cracking noise ahead of me. I stop, listen intently,look left and right but there is nothing. I walk cautiously, conscious of the danger of the wild.
Eureka! There are pigmy hippos grazing a few metres from me.They look healthy and undisturbed by my presence. The ecosystem around here is wetland with large masses of water lilies. Not far from the hippos, lies an adult Nile crocodile, eyes closed and mouthwide open. I guess he must have had a very heavy lunch. The adventurous spirit in me urges me to move ahead. I grab my camera and
Growls rent the air accompanied by purrs. I follow into the footsteps of my host without uttering a word. We enter a medium-sized shelter with walls made of glass.Outside, a restless big cat, I guess it is a cheetah, is purring. “Is that a cheetah or a leopard?’’ I break the silence. “It is a cheetah. The main difference between the two is that cheetahs have a tear line running from the inside of their eye to the mouth while leopards lack that feature.’’
Beaming with satisfaction, I hand my camera to the guide and request him to take photos of me. I pose like Usain Bolt in front of the fastest animal on earth, smiling sheepishly. Bang! A loud noise on the glass wall awakens all the demons in my head. I yell and jump in the air. My host is busy laughing like a hyena and capturing that awkward moment on camera. I gasp and look behind me. The cheetah is hitting the wall with its head. ‘’That glass wall is stronger that what you imagine. Not even an elephant can break it.’’ I force a short laughter. “Time to leave,’’ I mumble. “Not before viewing the river,’’ my host cuts me short. ‘’As you say,’’ I respond leading the way, unaware of the exact location of the river. The clouds have scattered and the sun is partially exposed. I hum to myself Reuben James, hoping that the clouds will scatter further. photograph them. From the corner of my right eye, I see a rungu wielding Masaai man approaching me. Startled, I freeze on the ground. We exchange formal greetings and he offers to show me around. “Why is that crocodile asleep?’’ I ask him in Kiswahili. He laughs and dares me to jump into its enclosure to find out whether its asleep or alert. “Is the whole habitat of Nairobi Safari walk a wetland?’’ I ask my host. ‘‘No. We are transiting onto Savannah environment,” he says pointing at a rock hyrax. A white signpost stands at the edge of the trail. It bears pictures of three rock hyrax and an elephant. “Hyrax and elephants are cousins,’’ reads the signpost in part, “The
2kg rock hyrax is a distant cousin to the 1200kg elephant. Forty million years ago, there was a beast called moeritherium. The hyrax and the elephant can both be traced back to this ancient ancestor.’’
“This is just the beginning of pleasure,’’ the tourguide accelerates my adrenaline. “What next!’’ I exclaim. ‘’Be calm and follow me.’’ I trail behind the Maasai warrior, passing a number ofcolourfulsignposts and diverse indigenous tree species. From a distance, I can spot an endangeredrhinoceros grazing. Not far from the rhino are herds of zebra, antelopes and a proud ostrich−a lone bird amid grazers.
We are at the end of the boardwalk. Below us, the river flows silently. I whistle. A scared dik-dik hops to the bush. A buffalo materializes from the forest and drinks water. Next to the buffalo, are mating Oryxgazelles? ‘’There is love in the wild,’’ my guide comments. ‘’And I am in love withthe wild,’’ I reply. “That’s lovely,’’ someone shouts from behind. I turn back. The three Australians are right behind us. The sissy loud dude is dancing− gyrating his hips and pointing at the mating gazelles with his lips. The burly man is holding his slim girlfriend in a tight embrace, taking selfies and chanting ‘that’s lovely’after every 3 seconds. Thank you Nairobi Safari Walk for showing me love. November I 2016 Edgemagazine.co.ke
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» Book Review TITLE: Making Your Point: Communicating Effectively With Audiences of One to One Million AUTHORS: David Bartlett REVIEWER: Oroni Tendera
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To effectively communicate, we must realize that we are all different in the way we perceive the world and use this understanding as a guide to our communication with others,”Tony Robbins.This quote emphasizes the often underrated power of communication. Corporate relationships have been built and maintained, in the same vein, organizations have fallen from glory to grass-thanks tothe curse and blessing of communication. Even though effective communication skills should be an integral part of a good corporate culture, they are often neglected or terribly misunderstood.Making Your Point: Communicating Effectively with Audiences of One to One Million by David Bartlett, a renowned communication strategist, highlights the relevance of effective communication. He writes:“We often fail to appreciate the single most important aspect of all successful communication, whether it is across the breakfast table or in front of an audience of thousands. We forget that effective communication is always a two-way street and that the people with whom we are trying to communicate probably have expectations very different from our own and come to the situation with an entirely different perspective.” The book is further divided intoeasy-to-read thematic sub-sections.
Look, Listen, Then Talk The author asserts that effective communication is not limited to the use of pompous words or sticking to facts but rather clearly understanding the needs and expectations of your audience. Moreover, effective communication not only entails anticipating what needs to be discussed but also defining the parameters that the conversation will occur. Bartlett argues that effective communication “is a proactive exercise. It is about playing to win, not just playing to lose. Effective communication is about telling your story, making your point and scoring points with your message. It is not defending yourself against someone else’s allegations.” Tools of the Trade In this sub-section, Barletfocuses on a number of effective communication tactics,ranging from preparing first-rate presentations to effectively interacting with theappropriate medium. The author’s advice to communicators is to remain straightforward and relevant to a wide range of situations. In this context, one’s message should be true (true to oneself as well as to one’s audience).
Making Your Point is filled with practical examples, such as the communications triumph that emerged out of the 1980s Tylenol scare and how Richard Nixon dealt a blow on his personality with his statement “I am not a crook.” These anecdotes magnify Bartlett’s arguments. Moreover, Bartlett does not engage in boring telltales. He actually makes an effort to practically demonstrate ideas to his readers. For example, when distinguishing between a message to be spoken to an audience and a message specifically written to be read on page, he designs two versions of the same message.
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» Song Review
TITLE: Cranes in the Sky ARTISTE: Solange Knowles REVIEWER: Oroni Tendera
C
ranes in the Sky is a song recorded by American songbird, Solange Knowles. It was co-written by Raphael Saadiq and Knowles and produced by Sir Dylan along with Saadiq and Knowles. The song serves as the lead single from her third studio album,A Seat at the Table, releasedon 6th October, 2016.
Cranes in the Sky is an upbeat track that speaks about attempts to alleviate the pain in alcohol, sex, music or even running away. The single’s accompanying music video was directed by Knowles and her husband Alan Ferguson. In the song’s video, Solangeis depicted alone and with fellow black women in grand, gorgeous spaces. In the clip, Solange poses in an assortment of outfits. One shot showsher in a mini-dress made of large green leaves. And in another, she models in a dress made of pink plastic. The background’s scenic beauty is a vital component of the song’s perseverant message.
With Raphael Saadiq on bass, the beat is spacious, giving Solange sufficient room to detail her truth. A truth rooted in real struggle and exasperation, of which she finally shakes free.
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Solange wrote Cranes in the Sky eight years prior to the album’s release. In 2008, producer and singer Raphael Saadiq handed Solange a CD with few instrumentals on it. One consisted of just drums, strings and bass. That night Solange returned to her hotel and wrote Cranes in the Sky. Eight years later when Solange had finished writing and creating A Seat at the Table, she revisited “Cranes in the Sky”.
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Ebenezer This project is located 5 kilometers off Kangundo road, within the Joska locality. Ebenezer Gardens is serene, tranquil and very affordable. The project is in close proximity to the Nairobi CBD and is adjacent to the upcoming Greater Eastern Bypass; which starts on Thika/Garissa Highway, through the Lukenya hills and terminates on Mombasa/Nairobi Highway. Access to these region is via Kangundo road. The road from Kangundo road in a graded all weather road.
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The project's land parcels are an eighth of an acre. Ebenezer Gardens is in near the new Children's Welfare Association headquarters. There is a private water supply line running adjacent the property The project is a buy and build ( the plans are pre-approved and development is controlled and in a gated community). The plans are for bungalows and maisonettes. The project has a perimeter fence and a gate. The land parcels are well demarcated with visible, numbered surveyor's beacons. The close proximity to the city of Nairobi has made the area a focus of many developers. There are numerous projects ongoing and upcoming adjacent.
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