APRIL/MAY 2017
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SECURE YOUR BUSINESS IN
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Inspirational Business Interview
Agribusiness Opportunities in Nakuru County
INVESTMENT NEWS 3
INSIDE THIS ISSUE
APRIL/ MAY 2017
SPECIAL REPORT
COVER STORIES REGULARS Publishers View ………. Page 4 The last word ………….Page 30 Quick News ……………..page 5 Books and Culture…..page 27 Technology…………….page 26
THE INSPIRATIONAL BUSINESS INTERVIEW! SEE PAGE 24
AGRIBUSINESS OPPORTUNITIES IN NAKURU COUNTY Nakuru County can rightly be called the home of modern farming in Kenya. In this issue we look at farming opportunities in the County. Start om page 11 How to get your SME listed at the NSE and easily raise funds for expansion Start from page 7 Secure your business against vandalism in the forthcoming elections Start from page 10
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PUBLISHERS VIEW
Editor Muli wa Kyendo
Associate Editor Emily Muli
Contributors Francis Ochieng Wilfred GachanJa Nguli Muli
Marketing Charles Kavuu Mary Mumbua David Macharia
Investment News is published every two months by Investment News Ltd, P.O. Box 20257 –00100 GPO Nairobi, Kenya Tel: 0773991820, 0721302418 Email editor@investmentnews.co,ke Web: www. Inveswmentnews.co.ke ISSN 1814—9966 All rights reserved Copyright: Investment News Ltd
SMEs Should Take the Opportunity to Raise Capital at the NSE Capital to start and run a small or medium business is one of the biggest headaches for any entrepreneur. Many Kenyans have good ideas which if implemented and nurtured can help create wealth and employment which this country desperately needs.
it the right way—giving an opportunity to people whose efforts decidedly show an interest in entrepreneurship to raise money to pursue their dreams. It is the only way to identify people through whose untiring efforts, this county can develop.
The common method has been for the government to give loans to college graduates to start businesses. So far, the government has nothing to show for these efforts except for an increase in opportunities to steal (OTSs) for greedy individuals. Now the Nairobi Securities Exchange is doing
But the NSE must guard against impostors who can write copied business plans in the hope of raising money for their pockets. These are people who often do not have any idea why they want to be in their line business or any passion for any business ideas.
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QuicK News
A ‘Tan’ for the Better for Leather Sector Few Kenyan companies in leather industry are taking up the opportunity to set up industrial sheds at the Leather Park at Kinanie in Athi River, despite generous offers made by the government to investors in the project. The park is a Vision 2030 project – investments that are deemed key to change the country’s economic fortunes and status. According to the Cabinet Secretary of trade Adan Mohamed, the leather sector has made notable strides. “It has for example moved away from exporting raw hides and skins to processed wet blue. Currently, the export value for raw hide and skins is at USD 6.7 Mn, wet blue and crust USD 131 Mn, finished leather at USD 3.5 Mn, and finished leather products at USD 5.6 Mn.
Kenya’s economy representing only 0.3% of GDP and 0.7% of formal employment, the goal is to leverage the current momentum and move into more valueadded products, further down the leather value chain.
Government incentives include substantial tax benefits and wide range of park services to allow a quick ramp up and international competitiveness. “In terms of financial benefits we give you a 10-year corporate tax holiday (25% tax rate after 10 years), 10 Wet blue is leather that is not years withholding tax holiday on completely tanned. remittances to non-residents Although the leather sector re- and many other benefits.” mains a small contributor to
CS Adan Mohamed (left) discusses leather issues
KBS News The Kenya Bureau of Standards has announced that you can now purchase Kenya standards from their Webstore which is accessible at https:// webstore.kebs.org or from the KEBS Website at https:// www.kebs.org by clicking the tab “search and buy standards online”. The Webstore is an ideal platform for you to find the standards you want & it offers several search possibilities i.e. Keyword e.g. Tea or standard number e.g. KS 65
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QuicK News
Fruit Processing Factory Opens Doors in Makueni Makueni County Government has announced that the Makueni Multipurpose Fruit Processing plant at Kalamba is now open to receive fruits for processing. The mega project will tap an annual production of 20,000 metric tonnes of mangoes, 20,000 metric tonnes of citrus, 1,500 metric tonnes of avocado and 5,000 metric tonnes of bananas all valued at 20 billion. Governor Kivutha Kibwana says, "This project will have massive incentives to a large number of Fruits in Makueni County people of Makueni entirely ity, pricing and living standards." through increased household incomes, job creation in both Sh.230m fruit processing factory farm and factory, improved qual- will be administered by a special
authority, the Makueni County Fruit Processing Plant Authority.
Kericho County Farmers Gain from Sweet Sugar Plant Kericho County farmers who have adopted stevia growing, a plant whose leaves produce a natural sweetener that has no calories or carbohydrates, are now excited with increased income. A farmer who abandoned growing cabbages and potatoes
for the sweet plant says the money she gets now exceeds by far the Shs10, 000 she was earning.
to give it a try since I felt I was not making good money from tomatoes and cabbage growing," she says.
“I had not heard about it and many of us were reluctant to start growing it, but I decided
The plant grows naturally in Paraguay and other parts of south and north America.
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Cover Story
THE NAIROBI SECURITIES EXCHANGE WOOS SMALL AND MEDIUM BUSINESSES SMEs in Kenya have now a rare and secure opportunity to raise money for start up or running businesses at the NSE. NGULI MULI reports
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mall and Medium Enterprises (SMEs) account for about 40% of the country’s GDP, and collectively provide 80% of the jobs in the country. Yet in 2013, loans given to SMEs by banks made up
only 23.4% of the total lending. This is part of what prompted the Nairobi Securities Exchange (NSE) to create a market specifically designed for SMEs to enable them to raise funds from the market. About three years ago, NSE introduced the Growth Enterprise Market Segment (GEMS) to allow small and medium enterprises a chance to get listed in the capital markets without going through the strenuous, rigorous procedure of large enterprises. And now, together with the Central Markets Authority
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(CMA), NSE is courting SMEs which meet the set conditions to get listed on the market. CMA has been hosting business training and advisory session for SMEs with a considerable capacity for growth. This is part of a joint effort to see the success of the 10-year Capital Market Master Plan, which was drafted in 2014. In this plan, NSE targets to list three to four new SMEs in the GEMS market every year. By 2023, CMA aims to have listed at least 40 companies in this market.
The GEMS market is particularly meant to benefit small and medium sized companies since it has lower entry requirements. For a company to get listed in the GEMS market, it only needs to have Ksh. 10 million in net assets. This is very low, especially considering the Ksh. 20 million and Ksh. 100 million required for the large enterprises. Kurwitu, a company that offers sharia compliant investment products to its clients, was the first to be listed under this new regulation and had to pay only Ksh. 32, 000. Companies can also get listed without neces-
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sarily having been in existence for over a year. It is also not a must for a company to have turned a profit so as to get a spot in the GEMS market. Home Africa was apparently listed even without having started its operations. According to its website, Home Afrika “will engage in property development of sustainable communities around Africa that will enhance the environment for long term positive societal impact.” CAPITAL The companies intending to get listed must however, have enough capital to run for the next 12 months after getting listed, and must have auditing accounts for the year prior to getting listed. The companies will have to issue at least 100,000 shares, and 15 percent of these must be held by at least 25 shareholders within the first three months of getting listed. In the main segment of the stock exchange, a company can only get listed with a minimum share capital of 50 million, which have to be held by 1,000 shareholders. Basically, the GEMS market allows any company with a
solid business idea to get listed on the market. Summary of the Main Requirements to get listed on Although the market has the GEMS Market been in existence for three years now, SMEs have not Companies must have a rushed to be listed. To date, minimum of Ksh. 10 there are only four compamillion in paid up capinies listed in the market. By tal the end of 2016, NSE and Companies must issue a CMA had reset their goals, minimum of 100, 000 and are now on a quest to list shares 19 companies by the end of 15% of the shares must 2017. By 2023, they hope to be held by 25 sharemake a total of 39 listings. holders within the first three months of getting The business training and adlisted visory sessions aim at All the directors of the attracting more SMEs to the companies must not market. Consultants, advihave been convicted of sors, lawyers, auditors and any form of financial investment firms will be enmisconduct or bankgaged to help SMEs identify ruptcy in the past 2 investment opportunities, years develop business plans and Must have adequate business strategies. The comcapital to run for the panies will also be advised on next 12 months after the GEMS market. getting listed Must have audited recThis market will play a crucial ords which do not necrole in providing more opessarily have to reflect a tions to SMEs when it comes profit to accessing funds. In the Companies’ boards and long term, it is hoped that senior management this market will lead to the positions must be occudevelopment of a more vipied by competent probrant economy as a whole. fessionals with at least one year of experience
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SECURE YOUR BUSINESS DURING ELECTIONS
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ith general elections coming in a few moths time – in August 2017 – it is useful for business owners to consider security for themselves and their businesses. Indications so far, show there could be a peaceful election, but it is important for the business community to protect themselves from any possible risks. The events of post-election violence of 2008 will generally be rekindled in TURN TO PAGE 23
Guide to Agribusiness Opportunities in
NAKURU COUNTY April/ May 2017
Early Trading and Civilization 3,500 years of Sirikwa culture that never dies Archaeologists now tell us that unlike what is commonly believed Nakuru town- and many parts of the Rift valley— may have been continuously inhabited since prehistoric times or at least for the last 3,500 years. Excavations at the nearby Hyrax Hill - so called because of the many hyraxes found in the area – have uncovered remains that show that human beings lived in villages on the hill thousands of years ago. And more that the hill has been for thousands of years continuously occupied. The hill lies only five kilometres away from the centre of Sirikwa civilization in Hyrax Hill in Nakuru todays town of Nakuru— a modern city that was ”re-established” by the colonial White settlers as a railway outpost in 1904. It lies on the Population Population density School going 18 years Literacy rate
16 million 214 per sq. km 75 per cent 83,2 per cent
Urban population Access to electricity Access to improved water Paved roads
45.8 per cent 34 per cent 66 per cent 8.3 per cent
12 INVESTMENT NEWS shows of Lake Nakuru which is world famous for its flamingos. The early inhabitants are thought to have been a group of pastoralists called Sirikwa, and are believed to have emigrated from Egypt or along the Nile River.
troduced domesticated plants and animals into he region. The name Sirikwa derives from the name that various groups of the Kalenjin community gave to the builders of Sirikwa holes. It is taken to mean “the people who were before us”.
They are credited with having built many of the historic stone ruins and irrigation systems found locally. They are also credited with having in-
Local Kalenjin folklore describes the Sirikwa as tall and beared agro-pastoralists who kept large herds of cattle mainly the long-horned Egyp-
tian variety. They dug irrigation furrows and lived in circular stone kraals. They are said to have disappeared—possibly been assimilated into local communities—around 16th Century. And as Kalenjin folklore ruefully says, “the Sirikwa build the furrows but they did not teach us how to build them. They only taught us how to keep them as they are!”
Natural Resources and Infrastructure character and economic activities within the greater part of the County.
Nakuru County is rich in natural resources. It is surrounded by large hills and forests which have led to the formation of highest number of lakes within its borders in Kenya Lake Naivasha is a fresh water
lake and supports a lot of farming activities and tourism. Lake Elmentainta is famous for being
Diatomite mining in Gilgil located near flouspar and diatomite minisng sites while lake nakuru is wolrd famous for is colourful flamingoes and a national park. Little known howver is Lake Solai which lies near the border with Baringo. These lakes have defined the
Nakuru County has also large tracts of flat land that is suitable for large urban centres , institutions and factories. Large towns include Nakuru, Naivasha, Molo, Gilgil, Njoro and Mai Mahiu The County is also home to hot springs that are being harnessed for production of geothermal energy. Nakuru has well-developed tarmacked roads connecting its key towns with the rest of Kenya.
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Farming Opportunities Nakuru County is where commercial farming starts Farming in Nakuru County has essentially retained its colonial characteristics with large scale farming being more common than it is in other counties. While in most other counties former European farms have been subdivided among thousands of cooperative members, in Nakuru County they have remained essentially intact, changing hands largely to wealthy Africans.
farmers to view themselves as people engaged in farming as sustainable businesses. “We are encouraging investors, both local and international to invest in the manufacture of
Foundations of Modern Agribusiness
Large scale farmers typically engage in dairy, wheat and dairy farming or horticultural farming such as flower farming. In deed, Nakuru County is awash with stories of people who abandoned well-paying jobs for dairy farming and whose heifers now will fetch up to Shs 600,000 each. But there are also crops and animals that are suited to the small and medium scale farmers either as individuals, in cooperatives or as groups. The Nakuru County government itself is encouraging small scale
farm inputs such as fertilizers, machinery and equipment to use in processing what the small scale farmers in the County produce,� the County Government says.
It is difficult to tell the story of agribusiness in Nakuru County without mentioning the transformative efforts of British setters such as Lord Egerton who bequeathed to the country Egerton University and Lord Delamere who has been credited with pioneering modern agriculture in Kenya. When Lord Delamere arrived in
Kenya in 1901 and settled as a farmer near the present day Naivasha, there was no large scale organized agriculture and there were no high yielding crops and livestock breeds. Delamere set out to introduce new high yielding breeds of animals and crops and organize agriculture on large scale. His knowledge has served as the basis of Kenya’s agricultural economy. He is credited with pioneering modern dairy industry and wheat farming. Both Lord Egerton and Lord Delamere believed in experimentation and science driven agriculture which laid the foundations of modern agribusiness in Kenya.
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town. This however does not mean that small scale farmers cannot take advantage of large scale farming. One way of doing so is suggested by the County Government which is encouraging the formation of farmer cooperatives. Farmer cooperatives can pull resources so they can add value to their farm produce. Being encouraged too are financial institutions such as cooperatives with affordable credit for the small scale formers. “We are actively encouraging farmer to join or start cooperatives.” Because of its well-developed
commercial farming system— thanks to the colonial farmers— markets even for the small scale farmers are not difficult to access. Also easily available are farm inputs as most manufacturing companies are either based in the County or have strong branches in Nakuru
Breakdown of costs for wheat farming To do a good crop of wheat, you need: Sh5,000 for leasing land, Sh3,000 for the fertilizer and Sh3,500 for seed. Sh2,000 for ploughing Sh3,000 for harrowing twice Sh2,000 for labor, Cost of herbicides varies depending on weather conditions An acre will produce upto 20 bags of 100 kilos each. Selling price is between Shs3,500 and Shs5,000.
Investment groups are also ideal for large scale farming opportunities that are available in Nakuru County. Like in cooperatives, individuals are coming together to form a large group of investors. They then hire a large farm after they decide on the crop they want to engage in. A good example is the Barina Self-Help Group who farm on 2,000 acres in Solai The group consists of some 500 former squatters on the farm. Among the crops they grow on their farm is wheat. Individuals or groups can lease land for Shs5,000 an acre (see our breakdown of costs for wheat farming in the sidebar). Leasing land for farming in Nakuru can, in fact be quite profitable. But TURN TO PAGE 22
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Soya Beans for Financial Health Change your situation in less than 3 months In some parts of Nakuru County soya beans are empowering small scale farmers. It is however important to remember that the length of time the crop takes to mature varies depending on climate even within Nakuru County. In general, maturity period of soya bean crop ranges from 50 to 145 days depending on the variety used in cultivation. It should be an indication of maturity when the leaves turn yellow and drop and the pods dry out. How much you get per acre: Seeds(25 kgs) Ploughing,& harrowing Planting
Shs 4,000 Shs6,000 Shs2,500
Weeding (twice) Shs6,000 Herbicides Shs3,500 Manure Shs 4,000 Total Shs 26,000 You expect to harvest between 800 kg and 1500 kgs. With selling price at between Shs50 and Shs 80 per kilo, you expect to make over Shs40,000 per acre. Generally soya beans thrive well in warm and moist climates. Lower temperatures cause a delay in flowering. Soya beans require well drained and fertile loamy soils. Water logging damages the crop so it is mandatory to have proper soil drainage during rainy seasons.
It is important to keep the crops away from each other when intercropping so as to get good yield. When intercropping with maize, the plant row spacing of maize should be 100 cm, keeping plant to plant spacing of 10 cm and three rows of soya in between maize rows. Be sure that the beans that you plant are from an authentic source. Genetic purity is an important factor in seed selection. Avoid shrunken, hard, diseased or damaged seeds. Make sure you add manure when planting. The beauty of it that there are NGOs ready to buy your beans when the crop is ready.
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Riches with Potato Farming Potato is one of the most consumed produce in Kenya, coming second to Maize. It acts as a staple food crop as well as cash crop for many rural and semi urban dwellers playing an important role in improving national food security and income generation for those involved in its value chain development. According to the Kenyan National Potato Policy, Molo In Nakuru County is the second largest producer of potatoes in Kenya. Other key areas in Nakuru are Njoro, Keringet and Kuresoi.
Although potato farming is carried out by small scale farmers, it is an easy crop to help you make clean money quickly. Experts say that with an investment of about Shs 60,000, you can make upto Shs120,000 per
acre in just three months. Here is how it works: Current market price Shs2,000 per 100kg bag Production cost Shs 60,000 Averages bags per acre: 90 (100 kg bag) Shs 2000x90 bags = Shs180,000 = 120,000 Net income. Remember, of course, that prices of potatoes can rise and fall suddenly, but in whichever case, you are guaranteed to make a health profit. Potatoes are also excellent for value addition. Easy products to make and to sell are chips and crisps. It is also easy to scale up
your business once you have started it. To plant you crops, dig furrows with 75 cm spacing. Mix your soil with fertilizer. Follow the recommendations of the manufacturer, Plant you seeds with a distance of 10 cm from each other, If there is no rain, water regularly—at least every week. Make sure you cover your crops with soil so that the roots are not exposed.
Experts recommend that you should certify the appropriate seeds for the area you intend to grow your potatoes in. For example, potatoes that do well in Bomet –another important potato growing area in Kenya— may not do so well in Molo.
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BORESHA: TRANSFORMING COMMUNITIES Growth Indicators
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By EMMA MULI
he Boresha Sacco Society, has always believed that cooperatives are the best way for members to create wealth and financial security and for our country to build strong, vibrant and prosperous communities. “Our experience of 40 years has only reinforced that belief,” says Mr Moses Chebor, the Chief ExMember savings and deposits increased to Shs2.8 ecutive Officer of the sacco. “Cooperatives are billion from Shs2.5 billion while share capital in- playing a major role in the national economy, escreased to Shs285.9 million up from Shs73.5 million. pecially in providing marketing and financial serTotal assets increased to Shs4.95 billion from Shs4.3 vices.” TURN TO PAGE 18 billion in the year 2015. Despite very difficult economic times in the country last year, Boresha sacco was able to exceed the performance targets in terms of membership, deposits and revenues among other key parameters.
Members’ loans and advances stood at Shs3.7 billion up from Shs3.1 billion while turnover increased to Shs778.4 million up from Shs681.2 million in 2015. I appreciate members continued patronage of the sacco, and on behalf of the Board pledge that we shall continue putting in place strategies to ensure that performance is consistently improved.
— Albert Chebiegon, Board Chairman.
An ADM of Boresha Sacco Society
The Strength and Focus of Boresha Sacco Society Boresha Sacco Society has just recently held its Annual Delegates Meeting (ADM) - the 26th since the sacco was established 40 years ago. The meeting emphasised the sacco’s most important aspect of its vision of empowering communities with financial stability. Since its formation in 1976, the sacco has focused on expanding
its membership and increasing affordable loan products to serve the membership. From a mere 10 members with
meagre deposits of Shs60,000/-, the sacco membership has soared over the years to more than 77,000 and its deposits have grown to Shs2.8 billion. We are especially proud of the growth of microcredit section because it is the key to community empowerment. — Moses Chebor, CEO
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Boresha Sacco: Transforming Communities FROM PAGE 17 Confined by law to the common bond, the sacco at first served only teachers in Baringo. “But we knew, out there were many more people – especially the entrepreneurs — whose lives could be transformed with access to credit and financial support. Selfhelp groups and small businesses are the engine for a community's economic growth,” says Mr Chebor. In deed, in Kenya statistics show that more than 89 per cent of jobs created annually are in the small business sector. The sacco’s vision, its mission and its motto emphasises this cherished desire to build up communities that could be empowered to come out of poverty. When the common bond restrictions were removed, the sacco embarked on its journey to empower communities with financial support. Today a large number of its members are from the group classified as non- salaried members. These are mostly people engaged in small businesses – men and women who desperately need assistance. In absolute figures, the sacco grew to a staggering 77,000 members – more than 16,000 recruited in the year 2016 alone. Of the total membership, 13,323 are salaried members while non-salaried members have increased to 63, 891 rising from 48,272 the previous year. Non-salaried members include business persons, corporate institutions, farmers and community based organisations. The sacco has also increased loan products aimed at encouraging and supporting entrepreneurship,
business development and growth. “We are supporting particularly dairy farmers and agribusiness, sectors in which most people are engaged,” says Mr Chebor
In addition to these low interest loan products, Boresha Sacco Society has expanded its Corporate Social Responsibility (CSR) to better champion the economic transformation of communities within its areas of operation and beyond. “The formation of the Boresha Community Foundation (BCF) as a non-profit organization was necessitated by commitment to the cooperative principle of concern for community in general,” Mr Chebor explains. Devoted purely to implementing the sacco’s CSR, the Foundation is designed to deliver high-impact social development programmes across several strategic pillars – education and leadership development, financial inclusion and literacy, innovation, entrepreneurship, agriculture, health and environment. “Delivering high impact is to change lives for the better,” says Mr Chebor. The foundation will leverage the saccos infrastructure and resources to mobilize funds and grants from partners and donors and be guided by its motto, “United we prosper.’
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BORESHA SACCO MICROCREDIT PRODUCTS Micro-credit was started in 2003 with the key objectives of mobilizing savings and resources to empower the communities to eradicate poverty by availing affordable credit for production and financial stability. Micro credit activity targets low and medium income earners in the community. It is focused on giving opportunity to small-scale business persons and farmers to access savings and credit facilities to:
Enhance business potential, growth and development.
Empower the community to be economically self-reliant.
Promote youth women to prosper
Promote crops and business value addition
and
Since inception, Micro-credit Activity has grown steadily in client base, savings and loan
portfolio. As at December, 2016, total loan balance outstanding was Kshs.908 Million.
UFUNGAJI BORA The loan targets farmers dealing with dairy cows or goats, poultry or bee farming either in a cooperative setup or individually. Requirements:
Farmer opens SASA Savings Account (FOSA Account) Farmer buys share capital (minimum Shs2000)
In addition to these requirements, for a famer to qualify for a loan, he or she must have the structures for an animal business venture, a memorandum of understanding (MOU) signed between the sacco and a marketing agency as well as an agreement to channel their farm proceeds or payments through Boresha Sacco. It is
also recommended that a farmer insures the animals. Repayment months.
period
is
36
BORESHA KILIMO This product targets farmers carrying out agribusiness. Loans can be taken for working capital, ploughing, purchase of fertilizers and other farm inputs. Requirements:
Open an individual account in FOSA
Be a member of a farmers group
Farmers to coguarantee themselves or by the marketing agency
Loan repayment period is per the crop season. Other loan products include: Boresha Biashara, development loan, school fees loan, refinance loan, emergency loan and sacco quick loan.
USE M–BORESHA PAYBILL 545500 TO MAKE DEPOSITS INTO YOUR ACCOUNT
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he Geothermal Development Company Limited (GDC) has increased its turnover by 24% for the year ended 30th June 2016 from KES 2.53 billion to KES 3.16 billion. GDC therefore made a profit of KES 287 million compared to KES 1.6 billion previous year—a drop attributed to increased operational expenses. “GDC continues to get revenue from the sale of the 320MW of steam in Olkaria to KenGen which is used to run the two
GDC Board Chair Mr. Gershom Otachi Bw’ Omanwa hands over a copy of the Company’s annual report to the Managing Director & CEO Eng. Johnson P. Ole Nchoe during the 5th AGM
24% Increase in GDC Turnover new power plants and several wellhead generation units,” noted the Chairman of the GDC Board, Mr. Gershom O. Bw’Omanwa during the Annual General Meeting.
Eng. Johnson P. Ole Nchoe said that construction of 105MW power plants in Menengai would soon start, which will bring to GDC additional earnings of Kshs 1.7 billion once the power plants are ready and electrici-
The Managing Director & CEO
The gigantic 30 megawatts well in Menengai Geothermal Project.
ty is connected to the grid. Drilling for the project started in 2011 and by 2018, a total of 105MW of electricity will be connected to the national grid which will be the shortest period for such a project. In the past, geothermal projects in Kenya have taken more 10 years from conceptualization to power generation. GDC uses a unique model that combines its resources as a state owned entity (SOE) with those of the private sector, with the aim of accelerating the geothermal development process. This enables the company to speed up implementation of its projects.
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FARMING OPPORTUNITIES FROM PAGE 14 you should be careful because prices vary from one area to another. For example, near Nakuru town, prices can be as high
as Shs9000 per acre per year while in Molo, it can be Shs 13,000 per acre per year. Crops that are recommended for individuals and groups include potatoes, cabbages,
maize, and varieties of beans that grow and are harvested within a short period. Such crops do not also need machinery for planting , weeding or harvesting so even small plots
Money from Green Maize Farming Maize has a ready market as it is the main stable in Kenya. And it does very well in some parts of Nakuru County. To plant green maize on a one acre piece of land, you will need about 17,750/=. Here is the breakdown:
Make Money with Cabbage
a. 5 bags of seeds (each bag being 2kgs) selling at Shs480 - 550
Nakuru County is a big producer of cabbages. And cabbages are easy to grow and to market particularly during December festive season because it is one of the most popular vegetables among Kenyans.
b. Ploughing will cost Shs3000
Cabbages mature in three months after transplanting into the field. The vegetables are grown under rain fed or irrigated conditions. Spaced at 45Ă—45cm, an acre of
cabbage will hold about 19,000 plants. 19,000 heads weighing minimum 1.5kg=28,500kg @Ksh 10/ kg=285,000 minus Ksh 85,000 cost of production/acre. Net income=ksh 200,000 per acre. Keep in mind however that cabbages are among the highly perishable vegetables and are easily damaged in transport.
c. Planting will cost Shs1500 (that's labor) d. Fertilizer (1 bag of 50kgs) will cost Shs3500 e. Weeding twice at Shs2000 each totaling 4000/Planting should be done one month before the rains. You should be harvesting at least 8000 pieces and be able to sell a piece between Shs7-10. With that you should make at least Shs40,000. net profit.
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means that if a thief enters your premises through unlocked doors or windows without force, the insurance will not cover the loses. Other conditions may exist which may limit payment for losses for items on shop window display or valuables that cannot be easily evaluated such as manuscripts. It is important to find out also in case addiance should cover not only tional insurance is needed to the cost of the glass and its cover such items. replacement but also the cost of decorations and orna- Robbery insurance differs from burglary in that it inments on it. volves face to face confrontaOther insurance that can help tion. The robber actually uses include crime insurance force or threat of violence to which covers you from busi- take property from the perness losses due to criminal son guarding it. Robbery inactivities from people who surance covers the money, aren’t associated with your property or securities taken business. The two categories as well as damage that occurs of crime insurance are bur- during the robbery glary insurance and robbery Personal insurance is also esinsurance. sential in order to protect Burglary insurance protects yourself and your employees your safes and inventory in case of attack. against theft in which there is evidence of forced entry. This
SECURE YOUR BUSINESS FROM PAGE 10 the minds of Kenyans when they hear of violent campaigns, abductions of candidates or even violent and abusive campaign speeches, The easiest thing is to take away your goods from your business premises if you live in violence prone areas. This is possible if you have potable goods such as computers, printers or any other such light items. Fortifying you premises with walls and grills is another method of ensuring safety of your business. Vandals will be deterred if they find your premises are difficult to assess. Experts suggest close knit grills if you need such protection. Glass can easily be protected with such fortification. But some experts suggest taking glass insurance. A glass insur-
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THE INSPIRATIONAL BUSINESS INTERVIEW
Passion to Solve Age-old Problem How water engineer Fred Mutava discovered his mission ….and a thriving business
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was the preserve of corporates. enthusiasm, Mutava was ready I wanted to bring the technology to set out into the field of business. He printed fliers which his down to the small scale farmer. wife Joyce, distributed. And he “With technology, you could was lucky as he soon landed a ensure food security for yourself job for three greenhouses that and the community. You need earned him Shs278,000. “That not be held hostage to rain.” was our starting capital,” says “I was sure that this is what Mutava who is a staunch ChrisMutava whose business he says Ukambani - my home area— tian says God commanded us to started “with only an idea and needed. It was to me, the solu- “take dominion” over all the credebts from my sacco.” And tion to the frequent drought and ations on earth. “That to me soon business was booming. crop failures.” translated to the care of plants. However, it wasn’t long before It was that realization that led to Plants need food and shelter for Mutava came face to face with the birth of Green Hortgardens, a protection from elements— the challenges of his business. firm that is based in Kitengela particularly the sun. That is ex“When we started in 2010, deand was one of the earliest in actly what greenhouses enable signs needed perfection because 2010 to enter into the construc- farmers to do,” says Mutava. they were all original and had to tion of greenhouses. “By then, With this in mind and youthful be customized for different cligreen house farming technology hen Fred Mutava started work as a water engineer at the Primarosa Flowers, he was quickly impressed by irrigation technology.
INVESTMENT NEWS 25
matic conditions – some hot and others windy. In windy places such as Kamulu near Nairobi, Isiolo and Marsabit, our greenhouses were often blown away by the turbulent winds even before we left the site. “In addition to the loses I made, such problems tested our customers faith and patience in me especially because of my short track record in business.” But the worst challenge was caused by clients that either did not pay or paid in small amounts over a long period. Today he is cautious of projects from Counties and the national government. “At one time, we lost one of our trucks to auctioneers because we had been contracted for major projects necessitating us to take loans. By the time we were paid, the loans had accrued interest many times over and eaten into all our profits. “It has been a long and tough
A greenhouse built by Green Hortgardens Ltd journey,” says Mutava who today has several employees and engages many more casual workers and has spread his business not only around Kenya but
ADVANTAGES OF GREEN HOUSE FARMING 1.
The crops are of high quality giving you an edge in the market.
2.
The crops are protected from wind, sun and pests.
3.
You can grow your crops through out the year with irrigation.
4.
Green house farming is precision farming meaning that what you plant is what you get because plants are not interfered with by elements.
also to Tanzania where his clients include the former Vice President Dr. Mohammed Bulahari. “We need faith and belief in ourselves to succeed as business people.” After a pause, he adds, “We need to have conviction in what we are doing – a drive from the inside.” It is these qualities that have kept Mutava going, facing challenges with courage and faith. Mutava’s advice to starting business people is to have persistence if you belief in your idea. “You should also remain relevant by sharpening your skills and knowledge otherwise you'll be affected by competition, Your expertise is your strength,” He also advises business people to take care of their clients because they are their most important marketing agents. “I am greatly indebted to my clients because most of the work I get is through their referrals.”
26 INVESTMENT NEWS
TECHNOLOGY
Why Your Small Business Needs a Website Harnessing the web as a business tool is important, even for businesses that may consider themselves as primarily needing physical presence. Beauty businesses, food kiosks and any number of other service businesses ultimately all measure success by their ability to build offline relationships – and the web can play a huge part in that. So no matter how established your businesses is offline, it's crucial to get an effective online presence. And the advantages are many: 1. You are always accessible The key to making the most of the web is making your business as accessible as possible, letting people interact with you in a way that suits them, whenever they want to. Your customers are online 24/7, and as such they expect to be able to interact with you whenever and wherever they are online. 2. You keep your customers informed. You are able to keep your customers informed about your products and services. You have the privilege
to take full advantage of this by updating and keeping your content on the website fresh. You also keep them informed about new products at no cost. 3. Most people search the internet to lead them to your products or services In one study, it was revealed that today, many people search for goods and services on the internet first. More specifically, a majority of your potential customers search for your products and services on Google first. This means that if you are not there, they will opt for your competitor. 4. It is easier to trust a business with an online presence
Having a website makes a company credible. As a small business, people need to feel like they can trust you, and this is a simple trick to achieve that. In your website, you should also include testimonials by previous customers to make your business even more credible. 5. It is a way of advertising A website is the cheapest way to advertise your business. It is also the most flexible advertising option available right now. All you need to do is make your website pleasant to look at, and make it shout what you think is your edge over competitors. 6. Customer Analysis With a website, you can always gather information on the demographics of your customers and what they feel about your services. Their feedback helps you to improve your products to the satisfaction of your customers.
INVESTMENT NEWS 27
EXECUTIVE HEALTH
HOW THESE SIMPLE FOODS KEEP YOU HEALTHY Magnesium-rich foods are essential for cellular health stored in your blood, and the and over 300 biochemical functions in the body. Unfortunately, around 80 percent of people may have magnesium majority of it is stored in your deficiency, and the majority of them don’t even know it! bones. Some of the main health chalA study published in a medical
lenges that have been linked to a
journal, found that your body has
magnesium deficiency include:
3,751
magnesium
binding
sites. This indicates that magne-
Hormone PMS
sium benefits are far greater than
Fibromyalgia
previously imagined. Because
Heart attack
your body requires and uses
Type 2 diabetes
magnesium for so many different
Osteoporosis Constipation
functions, you can quickly become low in magnesium especially if you are not consuming enough high magnesium foods.
Neurotransmitter release
Blood pressure regulation
Energy metabolism
Tension or migraine headaches
Production of antioxidants
Anxiety and depression
Chronic fatigue
Some of the major functions Magnesium deficiency is dramatically under-diagnosed be-
Protein synthesis
Nerve function
Blood sugar control
and
Are You Getting Enough Magnesium? that require magnesium are:
imbalance
cause it doesn’t show up on a blood test! Only 1 percent of the magnesium in your body is
As you can see, increasing your intake of high magnesium foods
is essential to your health.
28 INVESTMENT NEWS
How to Increase Your Magnesium Intake If you think you might be low in magnesium, your best way
to address this issue is to start consuming foods that are high in magnesium. Buying foods from your local farmers market and foods that are grown organically may have higher levels of magnesium. The soil from conventional farms is depleted of magnesium because they don’t rotate their crops or let the land rest. Also, they typically only put nitrogen, phosphorus and potassium back in the soil, but
One major difference between
(Men RDA 400 milligrams and
human blood and chlorophyll is
Women RDA 310 milligrams a
that human blood has iron at the
day)
center of the cell, but plants have magnesium at the center of
the cell.
Top Magnesium Rich Foods
that are highest in magnesium
Green leafy vegetables aren’t
are
vegeta-
the only foods rich in magnesi-
bles, which are packed with
um and chlorophyll. Here are
chlorophyll.
is
some of the top foods high in
known as the “life blood” of a
magnesium that you will want to
plant and has the ability to ab-
add into your diet.
Chlorophyll
sorb the sun’s light and turn it into energy.
2. Pumpkin seeds — 1/8 cup: 3. Yogurt — 1 cup: 50 milli-
Typically, the foods you’ll find leafy
grams 92 milligrams
leave out magnesium.
green
1. Spinach — 1 cup: 157 milli-
grams
4. Almonds — 25gms: 80 milligrams
5. Black Beans — ½ cup: 60 milligrams
6. Avocado — 1 medium: 58 milligrams
7. Banana — 1 medium: 32 milligrams .
INVESTMENT NEWS 29
TRAVEL, CULTURE AND BOOKS
Strategies for Peace Title: Strategies for Peace Editors: Bruce L. Cook and Maria Cristina Azcona Published: 2016; pages 236 Publisher: Cook Communication, USA Reviewed by: Francis Ochieng
A
s Daniel Erdmann, himself a wellknown peace activist on the international scene says in the preface, Strategies for Peace presents “a unique conglomerate of articles created by a diverse team of international peer peace activists focusing on the current grievances and discrepancies to be found in our social environment…. The content of this book underlines that peace is not a gift that is granted for free but more likely the result of hard work.”
The book looks at peace from a variety of angles including language and literature, sociocultural issues, family relations, the role of women, the arts and conflict resolution.
It may be right to say that humanity was born into a world of conflict. Adam and Eve had conflict with God himself and their children Cain and Abel lived in conflict. Looking through history, peaceful coexistence may be classed among the greatest changes facing humanity. Natural tendency has been for each group of people to arm themselves to the teeth so that peace is “achieved” by subduing or even exterminating the adversary. That is not the kind of peace that peace activists such as those featured in this book, including the Founder and Executive Director of the Kenyan Syokimau Cultural Centre, Muli wa Kyendo advocate. What they are searching for is a method to
“produce peace without killing people,” as Bruce Cook observes. Any methods that can bring such peace “must be tried and tested immediately,” writes Cook. In Kenya, as we approach general elections with its high potential for deadly chaos, this book become a must read. In his contribution Muli underlines the role of folk stories in creating conflict or peace among communities. And we in Kenya know what it is that he is discussing and why we should pay attention to his views.
30 INVESTMENT NEWS
The Benefits of Farming as Groups Investment News recently witnessed the good work being done by farmer groups in Makueni County. Formerly dry pieces of land have been turned into lush agricultural areas with French beans , fruits and maize growing, healthy and tall. One farmer told Investment News, “Makueni County can produce much more than any other area in the country, See what we have done!” And best of all, there was a sizable number of youth who had abandoned the glitter of lights in Nairobi to return to the rural areas to take up serious farming. One happy youth told Investment News, “I am very happy that I returned home and now I can call myself a farmer.” On his farm which is under crop the year round, he grows French beans. From looking for employment, the young man is now giving out employment to other youth in the area. What has happened to Makueni
farmers? Two things have happened. The farmers in groups have access to efficient marketing and two, the farmers have access to credit. How is that possible? The farmers realised that they needed each other in order to access markets. So they formed famer groups. As a group, they can attract markets and credit. During harvest time, tracks of buyers go to Makueni and take the farmers produce straight from their shambas. That saves the farmers not only marketing headaches but also transport costs. As groups also they have attracted other facilities. NGO have come in to finance the groups, give them training assistance and even help them to construct storage facilities.
One of such facilities was a large house where farmers weigh their produce and store communal farm implements, medicines and other chemicals that would be dangerous if stored at home.
“This facility has been of real help to us,” one farmer told Investment News. Through the Universal Traders Sacco (UTS) which has a branch in Makueni, the farmers are getting low interest loans to improve their faming. Some have dug boreholes and piped water into their shambas. Everywhere that Investment News visited in the company of staff from the UTS, we where surprised by the rapport that the sacco staff have established with the farmers. Seeing the success of farming in Makueni, we got thinking about how much this country would benefit if farmers united into groups and started farming in similar groups. As in the case of Makueni, the markets would come to them. And the same would be the case with business finance. We believe the Government, NGOs and saccos can benefit by starting educational programmes to encourage famers to farm in groups.