Hustle East Africa MAY 2018 by Hustle E.A

HUSTLE ISSUE 002

VOLUME 013

MAY/JUNE 2018

EAST AFRICA

Africa's business magazine for the entrepreneur

INSIDE Agsol Targets Off-grid Farmers With Solar-powered Posho Mills

Is Blockchain in Africa a Disruptor or a Fad? High School Dropout Buids a Successful Ranching Business

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From a Side Hustle to a Real Estate Giant KSH 250 USH 8800 TSH 5500 RF

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HUSTLE EAST AFRICA IN ENERGY: Pipe dream? The twists and turns of Kenyaâ&#x20AC;&#x2122;s oil sector boom

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CONTENTS

26 18

WELCOME..............................................................................7 QUOTES.................................................................................8 BRIEFS

•Safaricom Launches Twaweza Live......................................9 •Kenya Airways lowers costs on extra baggage on its IntraAfrica Flights...........................................................................9 •East Africa Hub: Voith’s new center for hydropower projects in East Africa.......................................................................10 •General Electric, Microsoft, Kids Comp Camp Collaborate to get more Kenyan Girls into Science and

Technology.........................................................................11 •Great debaters contest engages thousands of students on sustainable development goals............................................12 •How technology is improving financial inclusion..............13 TECHNOLOGY •Is Blockchain in Africa a Disruptor or a Fad?......................14 EXECUTIVE CORNER •High school dropout buids a successful ranching business...........................................................................15 •Agsol Targets Off-grid Farmers With Solar-powered Posho Mills..................................................................................18

ENERGY •Pipe dream? The twists and turns of Kenya’s oil sector boom.................................................................................22 MAIN STORY •Username Investments: From a Side Hustle to a Real Estate Giant...........................................................................26 FEATURE •Nairobi is East Africa’s Premier Meeting Hub.....................28 •Is Kenya’s Nairobi National Park under threat?..................30 FARMING •Strawberry Farmer Finds Joy in Training Others.................34 •RABAK Spearheads Rabbit Farming Across Kenya.............36

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Hello and welcome to the May edition of Hustle East Africa magazine. Dear Readers,

ur cover story this month is an exclusive interview with the CEO of Username Investment, who discusses how his company’s bold strategies are driving its success. In this issue, we go out and examine Kenya’s oil dream, six years after the country first announced it had struck oil in Turkana. Will the country soon move into the small clique of oil exporting nations or will this dream remain just that, a dream? Our oil sector experts are at hand to give a perspective. We also found out about the real threats facing the Nairobi National Park, the only national park in the world to be found within a metropolis. Latest infrastructure development around the park seem to create friction inside and out of the park. Is the current real estate development in the surrounding suburbs any cause for alarm? Read on to get the details. Finally, be sure to read our insightful features on entrepreneurship, financial inclusion, and conference tourism. As always, enjoy the issue!

editor@hustlemag.co.ke FB: hustle magazine

Twitter: @hustlemag1 www.hustlemag.co.ke

QUOTES

“The evidence we are seeing is that the effect of the interest rate caps has been muted. We have not seen any evidence that the 50 basis points reduction in CBR has translated into credit expansion in the private sector.” Kenya Bankers Association’s director for policy and research Jared Osoro

7 8

“We will engage SMEs in tackling challenges that hamper growth via a one-on-one interaction to help them scale up. The concept was developed a few years back and we are focusing on a topical area that will impart knowledge on scaling up business performance,” Bank of Africa Managing director Ronald Marambii

“Our customers can buy cement using Safaricom’s Bonga Points. This technological innovation brings the company closer to its stated goals of customer convenience and delighting its customers. It also helps to grow the cement manufacturing business.”

“As a Kenyan brand, Safaricom is committed to growing local talent and positively impacting the lives of Kenyans. The Safaricom Twaweza Live activities have been designed to provide close interactions between various user groups with aim of making a positive change to their wellbeing.”

EAPCC chief executive, Simon Peter ole Nkeri:

Sylvia Mulinge, Director of Consumer Business at Safaricom.

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hustle briefs Kenya Airways lowers costs on extra baggage on its Intra-Africa Flights

N Sylvia Mulinge, Safaricom’s director of consumer business (center) joins comedians and local artists to launch Twaweza Live.

Safaricom Launches Twaweza Live

afaricom has launched the Twaweza Live campaign in a bid to positively impact customers and communities around the country. The seven-month long campaign will see the company engage with communities across Kenya through free medical camps, campus take overs, device offers, talent search activities, youth mentorship programmes and music concerts. The Safaricom Twaweza Live will also feature a live music concert series that will take place in various parts of the country that will bring together various Kenyan artistes. The campaign will be similar to the Niko na Safaricom Live which has since been discontinued. Twaweza Live will take place between May and November 2018, and will consist of six concerts held in Eldoret, Meru, Machakos, Mombasa, Kisumu and Kisii. There will also be road shows across various towns, artistes’ boot camps and Corporate Social Investment (CSI) activi-

ties. It will also focus on growing and maturing local music talent by giving artistes a chance to perform in live concerts across the country. Speaking during the launch of the campaign Sylvia Mulinge, the company’s Director – Consumer Business said: “As a Kenyan brand, Safaricom is committed to growing local talent and positively impacting the lives of Kenyans. The Safaricom Twaweza Live activities have been designed to provide close interactions between various user groups with aim of making a positive change to their wellbeing.” Artistes who will be engaged in the Safaricom Twaweza Live campaign will also get a chance to increase their revenue through mobile downloads of their music on Songa and Skiza platforms. Previously Niko na Safaricom Live concert series showcased local talent from big name artistes like Camp Mullah, Kidum, Size 8, Octopizzo, Sauti Sol, Gloria Muliro, Wahu, Willy Paul and P-Unit.

ational Carrier, Kenya Airways will implement a new baggage policy that will entitle its guests to 20% discount on any extra bag purchases up to 24 hours to departure. The new baggage policy will take effect on May 15th 2018. In addition to reduced extra baggage fees within Intra-Africa flights, guests will be entitled to one free bag in the economy class cabin at a maximum weight of 23 kilograms per passenger within Africa. However, the intra-Africa one free bag allowance will not apply to passengers travelling to and from other continents. Business class passengers will maintain their allowance at two free bags at 32 Kilograms maximum weight per bag. Kenya Airways Group Managing Director and CEO Mr. Sebastian Mikosz said “The new baggage policy is part of Kenya Airways strategy to provide simplified and discounted competitive prices for passengers who book their extra baggage, any time before 24 hours to departure whilst enhancing customer service for our guests” Kenya Airways has also expanded its distribution channels by increasing the available points where passengers will be able to purchase extra baggage. This move is intended to provide more convenience for passengers.

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Hustle briefs

HYDROPOWER

Symbolic hand-over of the key for the new Voith Hydro East Africa Hub in Addis Ababa, Ethiopia.

East Africa Hub: Voith’s new center for hydropower projects in East Africa

echnology group Voith opened its new East Africa Hub in the Ethiopian capital Addis Ababa New facility in Ethiopia will coordinate hydropower projects in nine countries in the east of the continent Strategic position, customer proximity, strong economic growth and hydropower potential were significant factors in the choice of location For more than 70 years, Voith has been actively contributing to the development of infrastructure in the region On May 11, 2018 technology group Voith (www.Voith.com) opened its new East Africa Hub in the Ethiopian capital Addis Ababa. In doing so the company is highlighting its active contribution to the development of electricity generation from hydropower in East Africa. From now on, the technology group will be planning and coordinating projects in nine countries in the east of the continent from this new facility. The opening ceremony was attended by Ethiopia’s State Minister of Water, irrigation and Electricity Dr. Frehiwot Woldehanna, German ambassador to Ethiopia Brita Wagener, Uwe Wehnhardt, CEO of Voith Hydro and Member of the Corporate Management Board, and numerous guests from the business and political arenas.

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Voith has been a partner in the region for more than 70 years In his opening address, Uwe Wehnhardt emphasized the enormous potential of hydropower in the region. “Voith has been supporting the development of clean energy generation in Africa since the 1940s. We are reinforcing this commitment through the opening of our facility in Addis Ababa,” says Wehnhardt. Voith will work with customers and investors to continue to play an active role in developing a sustainable energy supply in Africa. In this context, training measures are an important element for Voith and will in future also be coordinated from Addis Ababa. The purpose of the training is to pass on the company’s extensive expertise in hydropower to local experts. Because Voith sees its role in the region not only as a supplier of cutting-edge hydropower technology but also as a full partner for developing energy infrastructure. Many reasons for Ethiopia as a location There were several reasons in favor of the new Voith location in Ethiopia. “Good market conditions and the proximity to our customers and partners, as well as the hydropower market potential and impressive economic development in recent years make Ethiopia an ideal

base for our new site,” explains Uwe Wehnhardt. With a hydropower potential of 45,000 MW, Ethiopia has one of the largest resources on the African continent. Since 2011, the country has been boosting the development of renewable energies and aims to be the energy hub for East Africa in the medium term. “Due to the longstanding history of hydropower projects in Ethiopia there are a large number of well-trained experts in the country. Some of these experts are now supporting us in our new East Africa Hub,” says Wehnhardt. The good logistics are also a point in favor of Ethiopia. For example, all the countries serviced – Egypt, Kenya, Sudan, South Sudan, Rwanda, Tanzania, Uganda and Zambia can be reached by direct flights in just a few hours. Numerous projects under construction Already, Ethiopian hydropower plants with Voith technology are supplying up to 900,000 households in the country with clean, sustainable electricity. One of these power stations is Gilgel Gibe I, which went onto the grid in 2004. Its three Francis turbines from Voith have a capacity of more than 180 MW – sufficient output to supply electricity to over 120,000 households in the rural Oromia region around 260 km to the south-west of Addis Ababa. For the Gilgel Gibe II power plant Voith also supplied four Pelton turbines and generators and the electrical and mechanical equipment. It also trained the power plant personnel. Before Gilgel Gibe II was operational, only 15 percent of Ethiopian villages had electricity. Nowadays half of all rural communities are connected to the grid. Numerous other hydropower projects are currently under construction in Ethiopia. In the coming years they will increase the installed capacity by a further 1,500 MW and also bring Voith’s share of electricity generation from hydropower to around nine percent of the country’s entire power generation. Voith is also playing a leading role in hydropower projects in other East African countries. For example, the company is currently upgrading the small power plant Wanjii in Kenya. Voith is replacing the turbines, generators, control technology and all electrical and mechanical equipment. This will increase the capacity of the power plant by around 20 percent. The comprehensive upgrade is set to be completed by mid-2019.

SCIENCE

General Electric, Microsoft, Kids Comp Camp Collaborate to get more Kenyan Girls into Science and Technology

he event dubbed She Can Code Challenge is part of GE’s Girls initiative designed to encourage girls to explore the world of science, technology, engineering and math and STEM-based careers GE, SHOFCO and Kids Comp Camp collaborate to bridge STEM Gap for Girls from underserved schools and communities The girls will also benefit from other opportunities such as shadowing GE employees on the job and visiting GE facilities such as the GE’s Healthcare training centre and other customer sites. General Electric (GE) (www.GE.com) and Shining Hope for Communities (SHOFCO) (www.SHOFCO.org) in collaboration with Kids Comp Camp (http://KidsCompCamp. com) in Kenya are working together to increase girls’ participation and uptake of careers in Science, Technology, Engineering and Mathematics (STEM). The initiative seeks to close the wide gap in terms of women’s participation in STEM related careers after UNESCO recently revealed that only 28% of women globally are currently working in science and technology related fields. In Kenya, only 9% of Kenyan women are registered engineers. Today’s event dubbed She Can Code Challenge is part of GE’s Girls initiative designed to encourage girls to explore the world of science, technology, engineering and math and STEM-based careers. The coding challenge saw some 46 girls in Grades 6 and 7 at the SHOFCO School for girls undergo an engaging session of

coding challenges facilitated by Kids Comp Camp and career guidance session with GE Women Network. “Since 2014, Kids Comp Camp has interacted with slightly over 7,000 students in rural and slums areas, of which 54% were girls. Exposure, interest and support system remains the biggest barriers to young girls taking up courses and careers in STEM. We’re most pleased that GE and SHOFCO are on board to help overcome these barriers and reach out to more underserved girls,” said Caleb Ndaka, Program Lead at Kids Comp Camp. The event aims at exposing the underserved students to opportunities in STEM for both employability and entrepreneurship. To sustain the initiative, the girls will also have other opportunities such as shadowing GE employees on the job and visiting GE facilities such as its Karen Healthcare training center and other customer sites. Speaking on this initiative, Brenda Mbathi, GE Women’s Network Leader for East Africa said, “We are pleased to have the opportunity to share our experiences that can help shape careers for young girls who are the next generation of leaders. At GE, we see diversity and inclusiveness as an essential part of our productivity, innovation and competitive advantage. GE Girls STEM initiatives with SHOFCO are at the core of this.” SHOFCO runs tuition-free leadership academies for Girls, located in Kibera and Mathare in Nairobi, where over 500

students are receiving a free high-quality education from pre-kindergarten through the 8th grade. Every student receives healthcare, meals, uniforms and school supplies so that they can stay focused on what matters most: their futures. With dreams of being doctors, activists, and journalists, these bright minds will lead transformative change in Kenya and throughout the world. Despite large efforts made over the past decades to narrow the gender gap in STEM, major inequalities persist, according to UNESCO’s 2017 report on cracking the code: girls’ and women’s education in STEM. (https://goo.gl/Lf3nq3) Socio-economic, cultural and other obstacles still prevent female learners from completing or benefiting fully from good quality education of their choice in many situations. In higher education, only 35% of all students enrolled in STEM-related fields are female. GE Girls, part of GE’s East Africa Women’s Network, comes at the back of the company’s ‘Balancing the Equation’ commitment that seeks to increase the number of women in engineering, digital, manufacturing and product management roles by 2020. GE believes it is necessary to inject urgency into addressing ongoing gender imbalance in technical fields and fully transform into a digital industrial company.

Hustle briefs

DEBATES

Great Debaters Contest Engages Thousands Of Students On Sustainable Development Goals …the competition has attracted over 700 schools from across the country and expanded its reach to North Eastern Kenya Teen debate show the Great Debaters Contest (GDC) has launched season 8 of debate competition among high school students. The debate will see students engage in critical thinking around the 17 Sustainable Development Goals (SDGs) under the theme #GDC4SDGs. The contest, which was launched this morning by the Cabinet Secretary for Education, Amb. (Dr.) Amina Mohamed at the M-PESA Foundation Academy, is a fun, thought-provoking programme produced by Arimus Media Limited. It encourages student growth in public speaking, research and discourse on matters leadership and global affairs. The students are also challenged to creatively develop solutions that will positively impact their communities and incorporate the SDGs. While thanking BLAZE by Safaricom, the official sponsors, Arimus Media Limited C.E.O. Julie Gichuru noted that challenging the students to walk the talk enables them to cultivate a spirit of leadership and ambition as they strive to make a difference in their communities. “Since its inception seven years ago, GDC has engaged students in constructive discussions over topical issues. For the first time, we have gone a step further to challenge the students to take up at least one of the 17 Sustainable Development Goals and implement it in the best way to benefit their communities. We believe

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Education CS Amina Mohamed signs good values board during the launch of the great debaters contest season 8 held at Mpesa Academy. Looking on (left) is Charles Wajohi Ag. Director Consumer Business, Thika town MP Patrick Wainaina and Peter Shimanyule Chair Brand Kenya. that this ripple effect will help us achieve the Goals in 2030,” said Julie. This year GDC has expanded its reach to Garissa and Marsabit regions, and will award the winner the coveted title of The Great Debater. In addition to that, the winning school will receive a fully equipped ICT chill-out zone, while students from the winning team will walk away with tablets, medals and gift hampers from BLAZE, as well as a KES 250,000 cash prize for the school Patron. The competition will also recognize and award the 13 regional winners with trophies, certificates and medals, plus cash prizes for the Debate Club patrons. “We know that we cannot be a truly prosperous generation if we do not do everything in our power to create a world in which nobody is left behind. It’s why Safaricom is a proud supporter of the

SDGs, why the SDGs are embedded in our purpose of transforming lives, and why we are pleased to be investing KES 10 million in this season of GDC,” said Charles Wanjohi, Acting Director of Consumer Business – Safaricom. The Great Debaters Contest was launched in September 2010 at Olympic High School in Nairobi. It has since grown from four participating schools to over 700 schools across the country. Last year the contest covered 10 regions and saw 21,000 students take part in the debates, with Nyeri High School emerging tops followed closely by Bahati Girls Nakuru. This year, Great Debaters Contest plans to reach 12 regions and engage 40,000 students countrywide. The riveting debates will air on the National Broadcaster, KBC, every day from 6:20 pm.

TECHNOLOGY

How technology is improving financial inclusion By EY

ne-fifth of the world’s population are unbanked. Historically, it hasn’t been economically viable to provide financial services for these individuals, as they didn’t meet the minimum profitable threshold for most financial institutions. A number of reasons have combined to produce this situation, not just in developing economies but also in developed ones such as the US and UK. The introduction of new technologies has the potential to lower the cost of overcoming the hurdles that stop people entering the banking world – be they geographic or regulatory inaccessibility, product mismatch, or a lack of trust – transforming the formerly unbanked into valued members of the formal economy and supporting economic growth for all. Emerging markets are already embracing innovative technology and developing policy to increase financial inclusion. This is no surprise when you consider the estimated US$200 billion opportunity they represent (pdf). But the individuals classed as unbanked don’t all share the same situation. Some lack access to banking institutions, while others simply have needs that existing products don’t address. Even given a conducive environment, banks operating in these markets need to tailor their existing offerings to successfully achieve profitable financial inclusion. One problem is onboarding people who have never had access to banks or credit. How do you get them to trust banks with their money, and vice versa? Banks are now able to offer emerging markets innovative solutions, such as PNB MetLife

Insurance’s JKB Family Protection Savings Bank Account that bundles low-cost insurance protection with the benefits of a savings account. The bank expects this product to generate new business prospects of up to US$2 billion and foster trust among customers – many of whom will use credit products in the future. Channel innovation is also key. Digital channels can provide greater convenience for customers as well as lowering the cost for banks, and have been instrumental in helping providers overcome challenges related to infrastructure and geography. In Kenya, Musoni, a digital microfinance institution, uses a mobile platform to disburse loans within 72 hours and collect payments. In Bangladesh, the payment company bKash allows people to exchange hard currency for e-money through a network of community-based agents. This can then be used to transfer money to others, receive money, and buy mobile airtime. Effective financial inclusion will likely require a “bricks-and-clicks” distribution model, including physical branch presences to build trust and confidence, perhaps supplemented by agents (such as post offices and supermarkets). This may take a nontraditional form, such as Bank Rakyat’s floating bank branches allow inhabitants of Indonesia’s remote islands to access financial services. The bank has even gone so far as to launch its own satellite, BRIsat, to provide reliable connectivity and reduce operating costs. Technology is also allowing financial institutions to overcome the lack of credit histories in many of these emerging markets. Many financially excluded individuals don’t have the financial track record that banks traditionally rely on to support

lending decisions, nor do they necessarily have formal proof of identification. Pioneers in this space are developing new underwriting and credit scoring analytics for individuals and businesses to assess lending risk. In Mexico, the lending platform Konfio measures creditworthiness of potential business clients through a proprietary algorithm. By looking at cash flow and willingness to repay through analyzing the online application, social data, e-commerce platforms, and other data sources, they are able to create a credit rating for business that would be previously be turned away. In China, the agriculture fintech company Nongfenqi does the same through conversations with customers’ business partners, customers, and fellow villagers. These new ways to calculate risk save financial institutions money while allowing them to expand their customer base significantly. There has never been a better time for banks to seek revenue growth through financial inclusion, as the room for growth is broad. Banks that seize the opportunity opened up by new, cheaper, technology will be well positioned to capture market share and play a lucrative and transformative role in the growth of emerging markets. EY’s FinTech Adoption Index indicated that 69% and 52% of the digitally active in China and India respectively are FinTech users. These new entrants have already gained significant market traction in emerging markets from their ability to tap into tech-literate but financially underserved populations. Incumbent banks that don’t start targeting this customer segment will find the FinTechs and digital disruptors swiftly stepping up and owning the space. HUSTLE EAST AFRICA

TECHNOLOGY

A growing number of blockchain entrepreneurs are innovating to create unique solutions for African problems. With heightened crackdown on cryptcurrencies, is it too early to forecast the success of blockchain’s potentially impactful solutions?

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BLOCKCHAIN

Is Blockchain in Africa a Disruptor or a Fad? By Amoxers Wachira

n the world of technology, the best piece of technology wins because innovators find a noble way of applying it to solve a particular problem in a unique method. In Africa, Blockchain technology is gaining traction mainly because innovators are fast deploying it to solve some of Africa’s most stubborn problems. The newfangled technology, which

underlies cryptocurrencies, exploded last year when the value of major digital currencies reached record figures. Bitcoin, the first cryptocurrency project, recorded a mouth-watering price of up to $20 000 in December last year, minting the first batch of cryptocurrency millionaires. The blockchain technology is well developed in Europe and America, but in Africa, it’s in its nascent stages. While there are thousands of cryptocurren-

cies out there competing for the ever thinning cryptocurrency market share, only a handful of blockchain projects emanate from Africa. But this does not in any way mean that there is little blockchain activity in Africa. Indeed, the continent’s innovative entrepreneurs are leading the way in creating blockchain-based real world applications. From blockchain-based land registries to facial recognition technology powered by Artificial Intelligence, it’s easy to see how the technology is creating reliable and trustless systems that could forever change Africa’s technology landscape if they succeed. What is blockchain technology? Based on the concept of cryptography, Blockchain is a distributed ledger system that is autonomous and decentralized. This simply means that the distributed ledgers themselves are not controlled by any central government or financial authority. The ledgers record all transactions in a permanent way that cannot be altered in any way, and is considered to be immutable. Immutability is one of the values that make the blockchain a clear favourite in Africa, where everything is centralized. In centralized systems, human error or any other catastrophe can lead to total failure. Take the case of banks for instance. When a high magnitude error hits the banking systems, there’s the possibility of the bank going down with customers’ funds. With blockchain technology, however, every transaction is secured in a ledger system that is distributed to many computers, wiping out the threat of a total failure in case something catastrophic happens. In Kenya, the blockchain technology is disrupting the real estate sector, with positive results to show. Land in Kenya, like in most other African countries, is communally owned and few people have title deeds to prove ownership. Because the entire land registry dates back to the colonial era, land ownership is usually blurred. As such, it’s not hard to find a parcel of land in Nairobi, Kenya’s capital, bearing multiple title deeds. This creates the perfect breeding grounds for unscrupulous lands officials and cartels who sell one piece of land to different buyers. So widespread is the mess that buying a piece of land in Nairobi is a daunting and risk-laden exercise. A local real estate firm is looking into the blockchain technology for solutions.

Land Layby is creating a blockchain-based, parallel land registry to complement the official government land registry. Peter Tole, who heads the real estate firm says a blockchain-based online registry will put an end to fake title deeds. Land layby’s intervention comes at a time when the government is mulling a digitized land registry. In March, the Kenyan government announced a 13-member taskforce that is mandated to look into possible areas that could benefit from the Blockchain technology. On March 1, President Uhuru Kenyatta announced that Kenya intends to use blockchain technology and Artificial Intelligence to create a raft of solutions, including a facial recognition technology that seeks to enhance security in Nairobi, a city of three million inhabitants. On the same light, government agencies are stepping in to deploy blockchain technology to reap its benefits. Ac case in point is the public health sector which is building a connected web of 98 public hospitals. All hospitals will be interlinked by the decentralized technology, making it easy for any hospital to access and exchange data with peers. Elsewhere, a Kenyan entrepreneur is building the first cryptocurrency project. Isaac Muthui recently launched Nurucoin, an Ethereum based cryptocurrency which seeks to enhance intra Africa e-commerce trade. Nurucoin enables traders to use an integrated payment system with low fees and high transaction speeds. A few miles away from Nurucoin’s offices is BitPesa, a blockchain startup that provides forex services to cryptocurrency and fiat customers. It’s been in operation for four years. According to its CEO Elizabeth Rossiello, global payments promise a

bright future for Africa. “Blockchain payments are gaining traction as a favorite payments method between multinational companies and their African subsidiaries because of low fees,” said Rossiello. Cryptocurrency-based payment methods promise and deliver fast transactions speeds at lower fees compared to traditional payments methods. They are also transparent and reliable as opposed to centralized funds transfer companies. The versatile nature of the blockchain is perhaps what endears it most to entrepreneurs. “We cannot look at Blockchain Technology as a backup for cryptocurrencies. It’s also applicable in many sectors of our economy,” says Prof. Bitange Ndemo, a University of Nairobi lecturer. “Ignore this piece of technology at your own peril,” he advises. While it’s clear the new technology is slowly but surely disrupting African economies one sector at a time, it’s important to note the myriad challenges that could easily stifle the adoption of this technology. For instance, digital currencies continue to face widespread crackdown from financial regulators and governments across the globe. The Central Bank of Kenya has also raised its voice against cryptocurrencies by terming them risky, warning Kenyans to avoid using or trading in them. The only glimmer of hope, however, is the fact that the Kenyan government is looking at ways of integrating the new technology into the mainstream technology industry, a shot in the arm for the disruptive tech. It remains to be seen if other African governments will take a cue from Kenya to spearhead the adoption of the blockchain. If this technology succeeds, experts say it could be the defining factor that will reawaken the transformation of African economies. HUSTLE EAST AFRICA

EXECUTIVE CORNER

ENTREPRENEURSHIP

High School Dropout Buids a Successful Ranching Business Timothy Simiyu has beaten great odds to get a footing in the world of entrepreneurship By Special Correspondent

estled in the leafy suburbs of Karen, Achis Ranch blends seamlessly with the lush green vegetation of the Karen landscape. The ranch offers horse and camel riding lessons, and visitors get a chance to ride quad bikes. Given its prime location, and the fact that it’s set up in a small forest, Achis is a polular picnic site and entertainment joint, especially for revellers who prefer to connect with nature. Most prefer the serene and quiet environment to the hustle and bustle of the city. Its not hard to see why it’s one of the most sought after wedding venues. Timothy Simiyu, 36, runs the expansive ranch. A secondary school drop out, Simiyu has built the expansive ranch, together with the nearby Achis stables, through sweat, perseverance and hard work. He first came to Nairobi 16 years ago soon after dropping out of school. “I moved from Kitale to Nairobi in search of a job,” he says. Although he regrets dropping out of

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school, moving to Nairobi set him up on an entrepreneurship path. After settling at his uncle’s place in Karen, Simiyu took up jobs as a gardener. Because he was hardworking and honest, it didn’t take him long before his exceptional gardening work got noticed by his next door neighbour, a ranch owner who operated a stable.

Timothy Simiyu.

“I was fascinated by horses and camels. In my free time, I could volunteer at the ranch where I learnt more about horses and camels.” Seeing his enthusiasm, the ranch owner could tag him along whenever he had outdoor jobs at the nearby Carnivore restaurant. Its here that he got some lessons in camel and horse riding. Other than benefitting from the free lessons, Simiyu says he also realized that he was earning more money from the part time job than what he earned from his full time job as a gardener and housekeeper. Seeing an opportunity, he jumped into it and became a full time horse rider. He says that learning a new skill is important because it opens up many doors. They say that the two hallmarks of entrepreneurs are the ability to spot opportunities and the ability to take up those opportunities to create a profitable business. For Simiyu, he had already spotted an opportunity to advance his life. As such, he couldn’t waste any opportunity to learn the ropes of the business. From dealing with customers to handling children, he soon became a master of this trade. Unknown to him, this job would be a stepping stone to suc-

cess later on. Before long, lady luck came smiling. Tony Achesa, the ranch owner, permanently moved to Australia, leaving the expansive ranch in the hands of Simiyu and six other farm hands. The whole team was given 20% of the business to share equally amongst themselves. “Predictably, conflicts erupted along the way as most of the new directors lacked business mien,” he says of the aftermath. When the new directors realized that it wasn’t easy to run such a business, they quit, leaving Simiyu in charge of the ranch. With the management of the whole ranch squarely resting on his shoulders, Simiyu learnt the ropes of the business the hard way. First, he realized that this was a seasonal business. It didn’t take long before the low season came calling. “I had depleted all the savings as I thought the business could sustain itself throughout the year. When the savings dried up, I almost starved. I could barely feed or groom the horses or the camels. So many times, while lying on the cold floor, I contemplated throwing in the towel.” However, looking at the big picture, he says that he had to persevere as the business was showing signs of recovering in the long run. To kickstart the business, he knew he had to reinvest the little money that he earned. He first had to adjust his lifestyle. With a modest lifestyle, his next step was to set targets. These included repair of stables, buying more horses, and employing part time workers. Months later, his plan gradually paid off. For the first time in his new business, he had the money to buy an additional horse. Unfortunately, he didn’t have the funds nor the means to transport the horse. “In entrepreneurship, I knew I couldn’t give up, that is why I rode the horse from Thika road to Karen. It seems impossible until it’s done.” He repeated the fete four times after he acquired four more horses. Luckily for him, the camel seller offered to deliver the animals from Garissa to Nairobi, sav-

ing the youthful entrepreneur the agony of transporting the huge mammals. It has taken Simiyu 20 years to painstakingly built a business. Here are the top lessons that he says he’s learnt over the years. 1. Take risks Simiyu says he took a great risk to soldier on with the ranch business after his co directors deserted him. His was a high risk venture that needed lots of money to sustain. Even without any money to his name, he managed to change the fortunes of the ranch. Today, its a successful venture that’s a source of livelihood for more than five staff members. 2. Perseverance is everything Simiyu had to make personal sacrifices run the business. In the formative years, he had to sleep on a thin matress in one of the stables. He also struggled to make ends meet. Despite the odds, he

Clients having a good time.

overcame the challenges through perseverance. 3. You have to be passionate about what you do As the old saying goes, “if you love what you do, you won’t have to work a single day in your life.” This rings true for Simiyu, whose business has become a lifestyle rather than a commercial venture. Simiyu loves to connect with nature. Interestingly, even after the business picked up, he still sleeps in a tent inside the ranch. Initially, he spent his nights at the stables, sharing space with the horses. It takes passion to do this. 4. Treat your staff well and it will treat your business well Any business is as good as its staff. Staff members are the brand ambassadors of a business. If they’re happy at work, they’ll spread the joy to the customers. When this happens, the business thrives. Looking at Simiyu interact with his staff, you’ll be forgiven to think that they are family members. “I treat everyone here like family. That way, all of us are able to deliver the best for the business, which in turn rewards us handsomely,” he says. 5. In business, education is important, but not the only requirement for success As a school drop out, Simiyu could have given business a wide berth, but he chose to learn the ropes of business even with his limited formal education. In the world of entrepreneurship, it’s not hard to come across successful entrepreneurs who barely went to school. Simiyu says that education expands your mind, enabling you to think big. While it’s an important aspect of success in business, it delivers nothing if it’s not combined with some business mien. To overcome the education deficit, Simiyu says he’s learnt to be street smart rather than being ‘book smart’ “With good leadership skills, you can get the best skills from professionals even as you remain in charge of the core business.” Having turned around the struggling business and set it up for success, Simiyu has set his sights on an expansion drive. First, he plans to partner with an investor to construct a big hotel on the ranch. As it stands, visitors at the ranch have to either carry their own food and drinks, or make do with the open grill on site. HUSTLE EAST AFRICA

HUSTLE PROFILES

SOLAR POSHO MILL

Agsol Targets Off-grid Farmers With Solar-powered Posho Mills The companyâ&#x20AC;&#x2122;s founder says that the new solar posho mills will also provide farmers with solar energy to unlock their economic potential

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Matt Carr, CEO & Cofounder, Agsol.

By Amos Wachira

s in most parts of Africa, small-scale farming in Kenya provides a livelihood to millions of farmers. Although agriculture is considered to be the backbone of Kenya’s economy, the sector remains hugely traditional. Small scale farmers lack access to basic farm inputs. Agsol, a social enterprise, aims to change the fortunes of millions of farmers by providing them with solar-powered agro-processing machines. Its aim is to change the livelihoods of some of the 1.1 billion people who lack access to the grid. Agsol founders Matt Carr and Greg Denn designed several mills for processing maize and rice. Founded in Papua New Guinea, Agsol is targeting maize and rice farmers in Kenya. The firm has also set its sights on expanding its range of products to include coconut and cassava scrapers. “The idea was to link a technological solution in form of a mill, with a renewable energy power source,” says Carr. Agsol’s machines are designed with efficiency in mind. They are bundled with a solar panel that provides the energy to power them. “Our machines open up opportunities for farmers because they give them access to energy. The solar power generated is far much that what the machine needs. As such, farmers can start other income generating activities like a small barber shop using the surplus energy,” he explains. Since inception two years ago, Agsol has sold over 600 machines in Papua New Guinea and the Pacific Islands. Having successfully launched the products in Rice farmer Rita Madu runs her solar powered rice huller as a business to process up to 250kg of rice per day.

Tim Lambai grows pigs for local sale and now produces his own animal feed and grain flour with his new solar powered hammer mill. Papua New Guinea, Agsol is now targeting African farmers with the generation two machines. “We looked at Kenya and realized that the ecosystem is more mature and developed for this kind of innovation.” The Agsol machines are competitively priced. The hammer mill, (poshomill) package, including a solar system goes for $1700. The machine itself costs $1000. Because the company is targeting rural farming communities, it’s innovating to make the machines accessible to the farmers who need it. For instance, through a Pay As You Go platform, farmers can pay for the machines gradually as they continue using them. “We are also targeting farmer groups and co-operatives. From experience, we know that when farmers come together, they can easily raise funds to buy the machines for communal use.” Carr says that the company’s goal is to design and manufacture the machines

only. The solar component, he adds, will be provided by solar energy partners. “Our machines are compatible with offthe-shelf solar equipment,” he says. Although the company is piloting the machines in the country, the demand for these machines could rise exponentially if the interest they are generating is anything to go by. At an entrepreneurship summit in March, Agsol’s stand was a bustling with activity. Do the machines provide value for money? Carr says that the machines have a payback time of between one and two years. “Because they are powered by solar, the machines are largely maintenance-free compared to diesel-powered mills which need routine maintenance.” Although the machines are manufactured in China, Carr says that the Company will soon shift the manufacturing function to Kenya to create jobs for locals. He’s optimistic that the machines will gain popularity in Kenya, as they have in Papua New Guinea. With over ten years’ experience in the African energy industry, Carr believes that linking farmers with energy access could reduce poverty. His company hopes to deploy 100 machines into the Kenyan market in the next 12 months. Going forward, the company intends to create domestic and industrial scale machines to be sold alongside the current ones which mainly target farming communities. “We are looking at impacting 15 million people in Kenya in the next five years.” In the meantime, the firm is gradually impacting farmers, one machine at a time.

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ENERGY

OIL

Pipe dream? The twists and turns of Kenyaâ&#x20AC;&#x2122;s oil sector boom Slump in global oil prices has slowed down exploration activities

Africa oil tests Sala 1 oil block in Turkana.

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Amoxers Wachira

n Lokichar, 550 kilometers north-east of Nairobi, a dusty village is basking in glory brought about by a recent oil boom. British oil prospecting firm Tullow Oil announced in 2012 that it had discovered oil in the larger Turkana region. This was just the beginning. In 2014, Tullow announced its seventh oil find in the region, estimating that the basin could have as much as one billion barrels of oil. Since then, the village as well as its residents is now alive with optimism as a better, brighter future beckons. Fortunes of the arid land, populated by nomadic pastoralists, have continued to rise over the years, with Kenya’s profile changing in an instant. Undoubtedly, the discovery unlocked vast business opportunities in the region as investors continue trooping into the country. For instance, Kenya recorded growth in Foreign Direct Investments (FDI) according to a 2016 report by United Nations Conference on Trade and Development (UNCTAD). In Lokichar, the opening of the South Sudan border which opened up the region to business opportunities as well as a small non commercial airport are evidence of the region’s transformation. Besides these, an oil pipeline connecting South Sudan and the port of Lamu in Kenyan coast will pass through Lokichar. In Kenya, oil is associated with riches and no one is more optimistic than the common man. It is easy to see why. Oil prices in the global market dictate the local cost of food and commodities and by extension, inflation. When the country announced plans to start commercial production of oil by end of 2016, the whole nation waited with baited breath. But that might be just a pipe dream. Plummeting crude oil prices in the global markets over the past few years have dealt a major blow to Kenya’s oil prospects. Here is how. In July 2016; a barrel of crude oil was trading at $29. This is the first time it dropped below $30 since 2003 and 72 per cent lower than it was in March 2012 when Kenya announced it had struck oil. At the current crude prices, Kenya will be unable to extract oil, according to a Chicago based research and investment management firm, Morningstar Inc, which puts the

Nearly all the oil companies have restructured their assets and operations to reduce costs and preserve balance sheets’ integrity George Wachira, Oil analyst

breakeven price for oil from Lokichar at about $50 per barrel. When the good news about Kenya’s discovery of the precious commodity was made, crude oil was going for $111 a barrel. Oil analyst George Wachira says that the effects of falling oil prices are being felt in the local oil exploration scene, where many upstream investments mainly in exploration and drilling have either been reduced or postponed. “Nearly all the oil companies have restructured their assets and operations to reduce costs and preserve balance sheets integrity,” he says. Major investments that had started gaining traction are now losing steam, exposing the twists and turns that have since rocked the Kenyan oil sector. Industry analysts predict that the situation could get worse, at least in the next two years, before the affected firms return to some measure of profitability. Some explorers are leaving. UK’s Tower Resources, Afren Oil, Australia’s Pan continental Oil and Marathon Oil of the US have all exited Kenya due to a poor environment that makes it difficult to raise funds for exploration. Patrick Obath, a consultant in the energy sector explains the recent developments in the sector: “The level of activity in the upstream sector at the moment is between 40 and 50 per cent. We expect to see a lot of negotiations between the government and exploration companies to extend commitments that had been made earlier due to lack of finances for their implementation.” Firms offering support services to the sector have also been hard hit. With the prevailing oil prices, there is no much appetite for investment in projects such as pipelines by oil companies and other investors because of uncertain returns, “says James Mbote, chairman of Oil and Gas Contractors Association of Kenya. While the slump in oil prices is good news for Kenyans, who have enjoyed reduced fuel prices ever since the slump kicked in, it is bad news for a country dreaming to become a top oil producer. “ This turn of events is jeopardizing Kenya’s plans for early production of oil. A case in point is the collapsed talks between Kenya and Uganda-also producing oil, regarding a joint USD 4 billion pipeline to transport oil to the port. As it stands, Kenya will now have to build its own

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ENERGY pipeline to transport some 600 million barrels of oil from the Turkana oilfields to Lamu for export. This comes after Uganda struck a deal with French firm Total, which will see the pipeline run through Tanzania. In the short term, however, the government has said that it will transport crude exports through rail and road to Mombasa but the full scale and long term exports will be transported to Mombasa via the Turkana-Lamu pipeline. Oil expert George Wachira says that the competition between the two oil producing east African countries, Kenya and uganda is taking shape. “The next psychological contest is which pipeline (Lamu in Kenya or Tanga in Tanzania) shall dispatch the first barrel of crude oil into the international markets, “he explains, adding that there is a way out for Kenya, despite the current gloom.

With the prevailing oil prices, there is not much appetite for investment in projects such as pipelines by oil companies and other investors because of uncertain returns James Mbote,

chairman of Oil and Gas Contractors Association of Kenya

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EDUCATION

He says that the critical challenge for Kenya is to implement a timely pipeline project that results in competitive tariffs. This, coupled with the resurgence of crude oil prices expected to stabilize by 2019 could revive the Kenyan oil dream. “As the global oil prices show signs of strengthening, the Kenya economic and fiscal planners should be alert to a more stringent era characterized by higher cost of energy imports with negative impacts on foreign currency availability and inflation,” says Wachira. The industry is expected to rebound, probably post 2016. Could this change the country’s narrative-from boom, to gloom to another boom? Another boom can happen if Turkana oilfield investors and the Kenyan government are focused on having the crude production facilities and the crude export pipeline ready by 2019/20, says Wachira.

Oil exploration in Turkana.

The level of activity in the upstream sector at the moment is between 40 and 50 per cent. We expect to see a lot of negotiations between the government and exploration companies to extend commitments that had been made earlier due to lack of finances for their implementation Patrick Obath,

consultant in the energy sector, explains the recent developments

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MAIN STORY

REAL ESTATE

Username Investments: From a Side Hustle to a Real Estate Giant Fast growing real estate firm provides affordable land to young investors By Amos Wachira

here’s no doubt that the Kenyan real estate sector has grown in leaps and bounds in the last decade. According to the Kenya National Bureau of Statistics, real estate in Nairobi and environs has appreciated by an average of 25 %, an impressive growth that has seen real estate investments eclipse popular investment vehicles like stocks. Unfortunately, fraud has been the bane of the lucrative sector. One company is emerging as a driving force in elimination of fraud in this sector. Established in 2013, Username Investments ‘bet on creating trust, professionalism and reliability in the real estate sector is paying off handsomely. The company is also emerging as a force to reckon with in the competitive sector. To lend credence to this, it was recently crowned the best Real Estate Stand at this year’s Homes Expo, held in Nairobi in April. “We dedicate this trophy to our staff, who are vastly talented and experienced,” says Reuben Kimani, the CEO of Username Investments. As the company celebrates five years of operations, its impressive journey tells of a company that has moved from strength to strength year on year, primarily driven by an illustrious staff and a passionate management team. From just a couple of projects in 2016, the company has grown its projects portfolio to the current 27, with its latest land projects , the Hamptons, selling out in a record one day. Additionally, its client base has

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Reuben Kimani, CEO, Username Investments.

grown tremendously to reach 5000. It has also issued over 4000 title deeds so far. But behind the sparkle is a company that has come from humble beginnings. Founded by three entrepreneurs in 2013, Username Investments was initially a side hustle. The three founders teamed up to create a company they could invest in even as they continued with their day jobs. An engineer by profession, Kimani says that the founders settled on real estate out of passion. “We had a passion for the real estate industry. First, we realized that not many youthful Kenyans of working age could afford property and we knew there was a way that could make it possible for them to own land. That’s how we came up with the idea of providing affordable, but valuable land to them under Username,” he says. Being a side hustle, Username Investments failed to kick off as all of its directors were still in employment. That explains why for three years, the firm had managed to execute three projects only. The firm started to gain some traction after the founders left their day jobs to build the firm. However, like most other startups, Username faced a myriad of challenges before finally finding a footing in the industry. One of these challenges was fraud. In their third project, the directors found themselves staring at massive losses as they brushed with the ugly face of fraud. “We bought land only to realize that it had two title deeds. It was a massive loss but we had to forge ahead.” Smarting from the loss, the directors set up a small office in Nairobi where they launched their operations. Luckily, the business thrived. In line with their vision of evolving into one of the largest, most trusted and reliable real estate firms in the region, the three directors kick started its activities by hiring more staff and investing in bigger projects. They also moved to bigger offices in Westlands to enable the serve more customers. From

Reuben Kimani, CEO, Username Investments, with staff members after winning an award. 2016 to date, the firm has moved from a small company to a behemoth in the industry. “In 2016, we resolved to start projects worth over 100 million each. Our fourth project, Ngong Bliss was one of our biggest projects. We sold 500 plots of land within three months.” Looking at the cocktail of land selling companies in the market place today, it’s easy to see that Username property’s offering is among the most affordable. “We deliberately make land affordable as we desire to see more youths owning land. We saw a serious gap in the industry because most people could not afford to buy land. That’s why we brought a unique and different offering.” Indeed, some of its pieces of land on sale go for between Kes54,000 and Kes400 , 000, and are located in strategic locations near roads and the railway line. One of these are the plots of land dubbed Tinga Surburbs in Ngong’ which cost as low as 120, 000 for an eighth of an acre. The Hamptons in Nakuru is the company’s latest project. As has become the norm for the firm, the project recently sold out in record time. So, what makes their projects so irresistible? One may ask. “We build roads; install water and all the amenities without raising the price of land. This has become a good value proposition for our customers who prefer value added land.” The firm continues to shine primarily because of sticking to its core values of first class customer experience, trust and after sale services. The firm also offers free site visits for prospective land buyers, every Wednesday and Saturday. To keep the investments growing, the firm ploughs back most of its profits

to establish more projects. Username Investments growth has not come without challenges. First, getting capital to grow was a great obstacle. “Getting funds from financial institutions is not easy.” The firm has found a way of investing in one big project and reinvesting back the profits to create more value. Fraud, rampant in the industry, is also a major setback. Having been a victim of fraud, the company has put up strict measures to check fraud. “We do due diligence before buying any land and this has really cushioned us from fraud,” adds Kimani. One other important thing that sets the land selling company apart from competitors is that the company refunds land buyers when needed. A case in point where a refund is necessary is when a client opts out of a project due to financial constraints. Username is among the few real estate companies that have specialized in land selling as opposed to property development. With the growing demand for housing, it remains to be seen whether the company will soon venture into housing projects. “We first want to be the best in land selling before we think of venturing into the housing sector. We feel that housing is our next frontier of growth.” At the company’s head office at the Mirage, Westlands, Kimani leads an energetic team of real-tors. Looking at the team, it’s not hard to see that almost everyone is young and talented. The youthful CEO advises young people to start investing in property now.” Join a Sacco and start saving for your investment. At 30, you should be having a portfolio of real estate investments.” HUSTLE EAST AFRICA

FEATURE Nairobi is East Africaâ&#x20AC;&#x2122;s Premier Meeting Hub

Jimi Kariuki, Chairman, Kenya Tourism Board (KTB).

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TOURISM

Kenya is offering conference tourists a rare opportunity of experiencing a mix of world class hospitality and unique tourist attraction sites

By Amoxers Wachira

onference tourism is emerging as a top foreign exchange earner for Kenya, a shot in the arm for a country smarting from a sharp decline in tourist numbers. For the last two years, an economic downturn as well as a surge in insecurity has occasioned the fall of fortunes for regular tourism, the country’s top income earner. However, conference tourism, commonly known as the MICE (Meetings, conferences, Incentives and Events) industry is plugging the deep hole that resulted from dwindling revenues of regular tourism. Conference tourism is already bearing fruits. According to Jimi Kariuki, the chairman of Kenya Tourism Board (KTB), Kenya has the capacity to successfully host high level events as it has done in the past few years. He explains why this niche market is on the rise: The Kenya Tourism Board (KTB), the national marketing agency, and the Kenyatta International Convention Centre (KICC), the largest convention centre in East and Central Africa have recognized the importance of and the contributions made by conference tourism to Kenya’s economic growth and in enhancing the country’s brand equity. Marketing of Kenya as a top destination for business tourists is therefore a top priority in our strategic plans. The marketing plans seem to work. KTB data shows that international tourist numbers grew by an average of 13% in the last two years. The subsector is expected to perform well in 2018. The precedent has already been set. Recently, Kenya has played host to thousands of delegates from different corners of the world. In the last two years, Nairobi has hosted the World Trade Organization (WTO) 10th Ministerial Conference and the 14th United Nations Conference on Trade and Development (UNCTAD 14). Additionally, Nairobi welcomed the world during the Global Entrepreneurship Summit in July 2015, presided over by US president Barrack Obama. There is no doubt that the meetings business is lucrative. Singapore leads the way in conference tourism. It hosted 3.5 million business visitors in 2013, and earned $5.5 billion in revenue according to statistics. This realization has prompted

most African countries to pitch for international conferences, and there is a huge potential. Globally, conference tourism is one of the fastest growing subsectors of regular tourism. The International Congress and Convention Association (ICCA) values the MICE industry globally at USD30 billion, with hotels accounting for 60 per cent of the total value. According to ICCA official ranking report for 2015, Kenya is currently rated as the third most preferred conference and business tourism destination in Africa behind South Africa and Morocco. Here is the reason: Kenya remains an exotic tourist destination with great weather all-yearround and expansive accommodation facilities. It is also East Africa’s biggest economy, doubling up as a transit hub for eastern and Central Africa. With a national park situated a few miles from the capital Nairobi, an international airport minutes away from the city and a string of world class hotel chains setting up every month, Nairobi is riding on its rich offering to attract tourists. It is easy to see why this mix of diverse tourist attractions, rich flora and fauna, and a booming hospitality industry are making conference tourism to thrive. The unquestionable success of the high profile meetings and conferences held in Kenya in the last one year or so is testament to the fact that Kenya has the ability and the capacity to host more and more future events of the same magnitude, says Kariuki. While regular tourists fund their travel expenses, conference tourists are usually sponsored by their companies, and thus have a bigger disposable income. This comes in handy for Kenya, out to redeem its tourism industry. Kariuki says that conference tourism has a multiplier effect in destinations in which both large and regular meetings and conferences are held. The beneficiaries from these meetings are numerous; from hotels and lodgings that enjoy high occupancies, restaurants and entertainment spots that receive large numbers of guests, tour operators and travel agencies who sell excursions, packages and domestic flight tickets, curio vendors selling their curios and memorabilia, to taxi drivers who ferry guests to various locations. While many sectors of the economy reap huge benefits from these conferences, there is a teething problem. Whenever key conferences are held in Nairobi, business grounds to a halt. For instance,

major traffic snarl ups are a common occurrence when most of these conferences come to Nairobi. As Walter Ongeri, a Nairobi based Strategy and Governance Consultant says, ordinary citizens do not understand the intricacies of such conferences unless the results impact positively on their lives. Is Kenya well prepared to seamlessly host major conference without majorly affecting local businesses? Jimi Kariuki, who dabbles as the managing director of Sarova group of hotels, says that while there are short term inconveniences experienced by Kenyans when such conferences kick off in Nairobi, the benefits gained by the local economy far outweigh the inconvenience. He adds that numerous trade agreements are signed between governments and between private sector players that support investment, skills development and capacity building. These agreements strengthen the relationships and partnerships between nations and also support in reducing Kenya’s dependency on aid and loans. KICC is Kenya’s biggest convention center. It therefore follows that the convention center hosts most of these high level conferences, raising questions as to whether one center is enough to meet the growing demand in the MICE industry. KICC operations general manager Joel Terer refutes such claims, saying that he is confident that the centre is well placed and ready to offer a unique MICE package, combining business with pleasure. So prospective is MICE tourism in Kenya that the government is planning to build another major convention center in the coastal city of Mombasa, as it contemplates devolving conference tourism to the counties. The growth in conference tourism shows clear indications of the huge potential this segment has in its overall contribution to our tourism. We need to fully maximize its full potential, said tourism CS Najib Balala. With Rwanda, Ethiopia, Tunisia and Tanzania among the leading regional competitors in the industry, the battle lines have already been drawn. But with such bright prospects, Nairobi is angling for a bigger market share of international meetings. “There is no doubt that this positive momentum in conference tourism in Kenya will continue to be maintained through 2018 and beyond, says Kariuki. HUSTLE EAST AFRICA

FEATURE

TOURISM

Is Kenya’s Nairobi National Park under threat? Nairobi’s iconic park which is only four miles from the capital city has seen infrastructural intrusion pose a threat to its existence By Amos Wachira

hough a small animal sanctuary by African standards, Kenya’s Nairobi National Park-unique for being part of a metropolis- is a top safari destination, but the park has recently come under pressure from infrastructural developments around it. Approximately four miles south of the park, which sits on 28, 963 acres of land, is a cloud of dust as earth-moving equipment and lorries turn vast dry grasslands into a winding rail road. A new standard gauge (SGR)railway is being built right through the park, mirroring the image of a metropolis that is undergoing rapid urbanization. Besides the railway line is a road bypass that is meant to ease congestion in the city center. Combined, the two developments have hived off more than 300 acres of the animal sanctuary. On another side of the park, high rise residential buildings are coming up. These projects will alter the natural habitat of the animals, conservationists have warned. Predictably, the Nairobi National Park, East Africa’s oldest, is at crossroads, with development and conservation weighing

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in. Established by British settlers in 1946, the Nairobi National Park is has etched its name as the world’s only national park which is in close proximity to a capital city. Since then, the park has remained free from encroachment, retaining its original acreage over time. It comes as no surprise that these infrastructural intrusionsthough an important part of a country’s growth-has worsened a lingering human wildlife conflict; characterized by scares as wild animals escape the park and venture into residential areas. For a long time, wild animals have been moving out of the park into nearby fields and homesteads, leaving death and destruction in their wake. In February 2016 for instance, a lioness and her two cubs, as well as two other lions were reported to have escaped the park but Kenya Wildlife Service (KWS) officials said they had recaptured the two lions. The remaining lions are said to have returned to the park ‘ on their own volition.’ “Every case of a lion escaping the park is unique,” said Paul Gathitu, a spokesperson for KWS, charged with management of parks. He adds that a section of the park is yet to be fenced as it allows for easy movement of animals into and away

from the park in search of grazing land. Fenced on three sides, (the southern part that pours into the nearby Athi Kapiti grasslands is unfenced) this park has provided a lifeline for flora and fauna in it for a long time. The entire Park boasts of housing the big four; lions, buffaloes, rhinos and leopards, which are among the 80 species of mammals, 450 bird species, 40 different amphibians and reptiles and 500 tree species that call the park home. It is also shelters 39 lions and 90 rhinos according to KWS. In terms of income generation, Nairobi National Park is one of the reasons behind the city’s growing economic fortunes. The park is part of the tourism juggernaut that earns Kenya millions of dollars in foreign exchange. Data from the Kenya Bureau of Statistics shows that the tourism industry contributes 10 per cent of Kenya’s Gross Domestic Product, coming third after agriculture and manufacturing. A big chunk of the money comes from the national parks and game reserves, now over 50 countrywide. As the institution managing all these parks, KWS accounts for about 90 per cent of Safari tourism in Kenya, translating to 75 per cent of total tourism earnings. But this is set to change if the park budges under constant

threats from different quarters, including continued real estate development in the neighbouring estates, seen to be interfering with the natural routes of the animals. Will the iconic park survive? “Nairobi National Park is here to stay,” avers Mr. Gathitu of the KWS, dissipating any idea of park relocation as untenable. But continued rise in human population around the park is detrimental to its growth, according to Dr. Philip Muruthi, spokesperson and chief scientist for conservation group African Wildlife Foundation. He says that most wild animals ‘like quiet areas.’ “If the natural processes leading to smooth migration of wild animals are interfered with, then we may lose animals like lions to starvation,” adds Paul Gathitu of KWS. To this end, KWS says that it has asked industries around the park to minimize water pollution. Communities living around the park

have also been told to stop interfering with the fence around some sections of the park. To strike a balance between development and conservation, KWS also requested that the SGR be raised within the park to ensure that when construction activities are over, wild animals can freely move without interference. “Wildlife is our heritage. Conserving wildlife is of great benefit to us than even to the wild animals,” said Dr. Philip Muruthi. It is clear that a solution must be found sooner than later, if this park, and others like it, will remain commercially viable. But before this is done, says, Dr. Muruthi, non compatible development like construction of roads in the area should be avoided and encroachment banned. As Paul Gathitu notes, the solution must involve working with communities around the park to ensure that there is mutual coexistence between people and wild animals.

This is already playing out 150 kilometers away from the bustling city and its national park, where locals are profiting from a world acclaimed model of private conservation called eco-conservation. Moses Lemein, a livestock trader in Narok county-not far from the capital Nairobi- and his neighbours own part of the Naboisho Mara Conservancy. They are members of the local community who have donated their land, and efforts, to a consortium of investors who have gone ahead to introduce one of the best managed private conservancies in Kenya, and perhaps, a possible solution to the recurring human wildlife conflicts.” Naboisho was recognized as a conservancy that remarkably brings together community and wildlife conservation to make better places to live in and great places to visit,” says Jeremiah Mutisya, the CEO of Basecamp Explorer, which runs Naboisho Conservancy on behalf of locals. With more than 70 identified lions, Naboisho is now believed to have one of the highest lion densities in Africa and is home to over 220 recorded bird species. Established in 2010 by BaseCamp Explorer, local community and other partners, Mara Naboisho Conservancy aims to conserve the biological resources and the socio-cultural heritage of the area, including land, wildlife, people, through a community conservation approach and responsible tourism practices. Spanning a total of 50,000 acres of pristine wildlife territory and spectacular scenery on the northeast part of the Masai Mara National Reserve, the conservancy’s land was contributed by over 500 Masai landowners who earn a direct income from it. Mutisya adds that eco-conservancy is a way of enhancing wildlife conservation outside protected areas.This involves the creation of conservancies where areas with known lion populations are transformed into semi- protected areas where the number of human settlements and livestock herds are managed in a way that maintains a sustainable balance. To cement the eco-conservancy models practicability, the Naboisho Conservancy was in April 7, 2015 awarded the overall winner in the recent Africa Responsible Tourism Awards held in South Africa. “This is the future of conservation in Africa,” notes Mutisya.

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FARMING

ORGANIC FRUITS

Strawberry Farmer Finds Joy in Training Others By Special Correspondent

o many Kenyans, strawberries are just fruits, but to Njoroge Kibe, they are his bread and butter. A Kiambu resident, Njoroge started farming strawberries five years ago. Today, he is a major producer of the fruits. Unlike many other farmers who grow conventional strawberries, Njoroge takes pride in being among the few farmers producing organic strawberries. When he ventured into strawberry farming, he realized that most strawberry farmers were using chemicals to propagate the plants, leading to low quality fruits. As a young farmer, he chose the unbeaten path of organic farming. And he has never looked back. In his quarter of an an acre piece of land in Uthiru, rows and rows of green strawberry plants line up his small shamba. While strawberry farming helps him earn his daily bread, training farmers on the best practice for growing strawberries gives him joy and satisfaction. “I like seeing others succeed. I love sharing my knowledge with others,” he says. By opening his doors to many other farmers, he unknowingly expanded his farming business. It was a blessing because after the trainings, the new farmers

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help him meet the high demand for the fruit. “Together with the new farmers, we can meet any demand for the fruits. When I’m doing it alone, I cannot satisfy the market, which keeps growing.” Strawberries are mostly sold in punnets and eaten as fruits. Most companies are now adding value to the fruits by creating fruit jam. His small shamba produces over 40 kilos of strawberries every week. While he occasionally gets orders of up to 150 kilos of fruits per week, he never worries about the produce, as the new farmers easily help him meet the deficit. Other than this, he makes some money through trainings. “Every Saturday, I train up to 15 people on a good day. I charge Kes1500 for the three-hour sessions, after which the new farmers are ready to go and start strawberries farming.” Looking at Njoroge explain a few farming concepts to his trainees, one wonders how the youthful man found himself in the agribusiness sector. Is it passion or does he do it out of curiosity. “My entry into farming was motivated by a TV program on farming. After watching the show, I partnered my brother and together we started the farming venture.” Njoroge’s journey started when they visited the KARI offices to learn more about strawberry farming. After the training, which was nothing more than an introduction, he was ready to start commercial farming. “We bought our first seedlings for Kes20,000d after a few months, they dried up. Little did we know that we had bought substandard seedlings, “he says of the ordeal that left him counting losses.

Njoroge Kibe, strawberry farmer. For Njoroge, a former poultry farmer, any loss was a bad loss, the reason he decided to search for a practical trainer with an aim of perfecting the rigors of his new venture. Together with his brother, Njoroge visited a strawberry farmer in Limuru, where they learnt all it takes to be successful in strawberry farming. “The training was practical and impactful. After the training, we felt we were now ready to do serious strawberry farming,” he adds. The venture kicked off earnestly. Before long, he realized that the demand for the fruits was huge, prompting him to look for other farmers to help him meet the demand. “I realized that training farmers to do organic farming was way impactful than contracting existing farmers to supply

use this method. “Farmers are only experimenting with seeds. Not many want to try seed because there’s a lot of work involved.”

Trainees at the farm. what they produced. First, I had the assurance that a newly trained farmer could only provide organic produce.” How do organic strawberries differ from conventional ones? According to him, organically farmed strawberries are big in size, are fresh and juicer than chemically farmed strawberries. They also fetch good prices in the market. He didn’t want to compromise on the quality of his produce. This led him to train as many farmers as he could. Together, the farmers marshal their energy to produce organic strawberries. It has since paid off. “I have expanded and I have another small piece of land in Kitengela where I farm strawberries.” Why are trainings necessary? “You can easily know which farmer has been trained by looking at their producel.” Njoroge says that there are many chal-

lenges facing strawberry farmers, some of which can only be solved when farmers come into contact with experienced farmers, Pests and diseases is one of these. When a farmers hasn’t been trained, detecting pests or diseases and eliminating them becomes an arduous task. “If you already know everything about strawberries, farming becomes easy and rewarding>’ Another challenge that farmers grapple with is poor quality seedlings. According to Njoroge, some framers use splits and others use runners. Splits are clones from old plants and are not usually of high quality while runners are the first generation plants from the mother plants. While splits can do well for one year, their quality deteriorates after one year. Runners can yield good results for up to three years. Strawberries can be propagated using seeds, but few farmers

What does one need to start? Njoroge says that all that is required is a small piece of land, lots of water, quality strawberry seedlings and some courage to start a business. “People should never say that they don’t have land. A small piece, say a quarter of an acre, can hold up to two hundred strawberry plants if the best methods of farming are deployed.” Like many other crops, strawberry farming has its own share of challenges. First, the plants need lots of water as a huge percentage of the fruits is made up of water. The other key challenge is erratic weather, Strawberries do well in places with warm climate. Given the recent heavy rains in the country, strawberry farmers are counting losses. However, strawberry farming is easy and straightforward. After planting, the plants only need periodic watering, mostly in the morning and evening. After the first one month, the watering frequency goes down, freeing up the farmer’s time. I “It’s not practical to stay in the farm from morning to evening. Strawberries don’t need lots of attention. The best thing about them is they give you fruits every week for up to three years.” In the next five years, Njoroge says he would be exporting the fruits to different markets across the globe. Given the rising demand for organic strawberries, his dream is valid.

A strawberry farm. HUSTLE EAST AFRICA

FARMING

Entrepreneurship

RABAK Spearheads Rabbit Farming Across Kenya Thika-based farmers lobby disseminates knowledge to rabbit farmers to turn around their fortunes

Mr. Peter Waiganjo, RABAK Chairman (Centre) poses with Rabbit farmers at the Thika HQ.

By Amos Wachira

he rabbit farming industry in Kenya has grown tremendously over the last few years. Having been in the industry for the last 20 years, Peter Waiganjo, a Kiambu resident and the current chairman of Rabbit Breeders association of Kenya has witnessed this growth. Rabbit farming, like any other trendy venture, gained momentum after a new breed of farmers joined the industry and popularized it as a lucrative commercial venture. “The growth of the industry is a good thing. Unfortunately, there are people who joined the industry and promised great things, like an export market for rabbits, but failed to deliver,” he says.

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When the rabbit farming boom failed to translate into millions for most farmers, there was a lull in the industry as many farmers exited. As a result, most farmers kept off the industry leading to a low supply of rabbit meat. As if that was not enough, most farmers likened the rabbit farming to the infamous quail farming scandal of 2014. “There is an information gap in the market about rabbit farming,” says Waiganjo. “We realized that if we came together to give people the right information, then, rabbit farming could become a real money spinner.” His organization was created to solve some of the main challenges that farmers were facing, including inadequate farming knowledge.

RABAK came into an industry that advocated for consumption of rabbit meat, yet, lacked a proper slaughter house. “There was also a challenge with rabbit breeding as we have only one government-owned breeding station in Ngong.” RABAK came on board with the main aim of streamlining this sector. It aimed to help the rabbit farmer make some money from rabbits. “When we came, we decide to also venture into rabbit value addition. As it stands, the industry lacks a proper value addition model, meaning that all the other by products of rabbit go to waste, including the skin. “We partnered with the government to make this industry a success. So far, we have a slaughterhouse in Thika that slaughters over 300 rabbits every Wednesday, thanks to the partnership.” Other than this, RABAK, in partnership with the government, is working on modalities to add value to rabbits. “We are in talks with Kenya Leather Board to see if we can tan rabbit skins. As it stands, the board doesn’t tan small skins.” Additionally, RABAK processes rabbit meat to make sausages. However, with the low supply of rabbits, this value addition endeavor seems unsustainable. With over 600 members, RABAK is a robust organization. Its members are located in different parts of the country, from Mombasa, Nairobi, Muranga to Kitale. The organization also partners with supermarkets and hotels to enable farmers to sell their rabbits to the mainstream market. “The demand for rabbits is high and we struggle to meet it,” says Waiganjo. One of the biggest challenges facing rabbit farmers is logistics. Transporting live rabbits is not easy, as Waiganjo reckons. RABAK, working closely with the government wants to set up small slaughter slabs in all counties to make it easy for farmers to deliver ready meat. Furthermore, RABAK buys rabbits from the farmers and sells them to consumers. One good thing about their buying model is that they pay farmers instantly. “Farmers also have the benefit of knowing they get the best out of their rabbits. We are certified by Kenya Bureau of Standards and other certification organizations to slaughter, sell and supply rabbits countrywide.” However, one of the challenges that

Healthy low cholesterol grilled rabbit meat.

A young rabbit farmer.

RABAK grapples with is the size of rabbits being delivered by farmers. “We slaughter rabbits which are three kilos and above. As you might be aware, rabbits lose half their weight after slaughter.” He says there’s need for farmers to get quality breeds that mature fast if they need to make rabbit farming a profitable venture. With the ongoing healthy eating trend, rabbit meat is also becoming a popular item on the menu as it’s categorized as white meat. Despite the demand, rabbit farmers suffer from a few prejudices,

Furthermore, RABAK buys rabbits from the farmers and sells them to consumers. One good thing about their buying model is that they pay farmers instantly

including being seen engaging in a hobby that’s meant for small boys. Fortunately, most farmers are making good profits from rabbit farming and this goes a long way to dispel the myths. RABAK is also involved with training of farmers. By organizing them in groups, the organization holds seminars and workshops across the country to train farmers on the best farming practices, The organization is motivated by the increasing demand for rabbit meat, the reason it wants to recruit more farmers. “We get many orders from different organizations. Unfortunately, we cannot meet this demand,” Waiganjo says the future looks bright for rabbit farmers. First, the export market is big, and could soon need over six metric tons of rabbit meat every month. “Export market is on our sights,” says Waiganjo, who has reared rabbits for two decades. In the next five years, RABAK wants to help local rabbit farmers get a share of the international rabbit market. In the meantime, the organization is trying to meet the demand for rabbit meat at the local level.

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