MAGAZINE
ISSUE 16
THEME:
Sustainable solutions
Life Cycle Assessment as a INSIDE: tool towards sustainable agribusiness firms, opportunities in the green economy and other articles.
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Table of Contents:
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Kenya Climate Innovation Center
Editorial
SMEs need a mentor in order to commercialize
Small and Medium Enterprises (SMEs) are the primary drivers of economic growth in most economies, especially in Africa. They create employment opportunities and contribute significantly towards the worldwide financial development. As per World Bank appraisals, 600 million jobs will be required by 2030 to retain the developing worldwide labor force, which makes SMEs advancement across the globe a key priority. The foregoing notwithstanding, development of SMEs has been bedeviled by a myriad of pitfalls and consequently, most of them do not live beyond three years. Besides the availability of factors of production at their disposal, these enterprises lack technical knowhow requisite for their survival. Unfair competition and at times unfavorable policies in their circles are also part of the challenges. SMEs therefore need a mentor to help them through the journey of scaling up. One such mentor is the KCIC Group, an incubator withing this space. KCIC Group has come up with a comprehensive methodology of supporting SMEs where it provides financing for SMEs in the agribusiness, renewable energy, commercical forestry and water and waste management sectors. The methodology also includes technical support and access to information and facilities for these SMEs to commericialise their ventures. The overall goal of the group is to assist the businesses and their customers to mitigate and/or adapt to the adverse effects
of climate change. The group is a one-stop center supporting innovative climate change solutions and accelerating the development of the clean-tech industry and sustainable development in Kenya. Happy reading!
Prabhakar Vanam, Chief Executive Officer, KCIC Consulting.
ABOUT LIVE GREEN On this issue, we shine a light on SMEs who are making tremendous efforts towards achieving commercialization. It also shares tips and opportunities that SMEs can exploit as they seek to grow further. The articles written herein have been submitted by writers and experts with experience in business development. Each quarter, Live Green magazine adopts a particular theme where writers and advertisers can submit content for publication consideration. To make such a submission or an inquiry, kindly send an email to info@kenyacic.org. THE TEAM Executive Editor: Dr. Edward Mungai Editorial Director: Ruth Ndegwa, Prabhakar Vanam Managing Editors: Ernest Chitechi, Solomon Irungu N. Writers: Vivian Kwame, Michelle Mung’ata, Grace Akinyi, Stephen Kihiko, Pamela Okutoyi, Chrispaul Muthaura, Wanjiku Kimani Contributors: Kennedy Berenju, Jabez Mutune, Benjamin Mwanza Layout: Solomon Irungu N., Moses Kimemia Photography: KCIC Consulting Other image sources: pexels.com, pixabay.com, unsplash.com 3
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How Jancota Limited is increasing potato production through apical cuttings technology
By Vivian Kwame
An image of mechanised harvesting of potatoes
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ccording to the International Potato Center (CIP), Potato is currently the second most important food crop after maize in Kenya, grown by 800,000 small scale farmers and generating employment 4
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for an estimated 2.5 million people along the value chain. The supply is however lower compared to the demand given the various challenges that most Kenyan potato farmers face such
as climate change, pest and diseases, lack of labour and land. Inspired by his love for farming and the need to increase the potato production supply across the country, Collins Wachira and his partner James Nderui started Jancota Limited, an agribusiness enterprise that specializes in the production of certified potato seeds. “NPCK has set up a platform for potato farmers where they offer them training and link them up with seedling providers like us. Through this, we are able to sell our products to the farmers,” he says. Apical cuttings technology is a rapid multiplication technique from tissue culture that ensures farmers get quality seeds in good time, unlike other conventional methods. Collins adds that the technique is also sustainable and the turnaround time for the production is faster in that, within a period of one to two weeks, the seedlings are usually ready for planting. Aside from supplying potato seedlings to potato farmers, the enterprise recently started offering training to farmers to help them improve on their production. The company is also looking at setting up a hub that can be used as a storage facility for fertilizers mainly for potato farming.
“The major challenge we experience is climate change. This interferes with the harvesting pattern. Another challenge is the availability of land, specifically land suitable for potato farming. Lack of specialised labour is also a big challenge. Most of the youth shy away from agriculture so there is not enough manpower in agribusiness. Finally there is the common challenge of lack of capital,” he concludes. On the bright side, the company has had achievements such as creating employment opportunities in their farms in Nyandarua, Kipkelion and Kiambu county. “Creating employment opportunities mainly for the youth is also an important aspect for us here at Jancota Limited,” Collins reports. Since Jancota Limited joined the AgriBiz program that is funded by the EU and Danida, it has received technical support and training on bookkeeping and setting up good internal systems. It has also been able to create a viable ten-year long business plan. Under this program, Collins hopes to continue receiving the technical support and training from KCIC as well as funding for scaling up the business.
Under their membership program in NPCK, Jancota Limited has reached a wide range of potato farmers whom they can sell their products to and link up with. “NPCK has set up a platform for potato farmers where they offer them training and through this platform; We are able to link up and sell our products to the farmers,” he says. “Aside from such platforms, farmers can also purchase our products and interact with us through our social media pages: Twitter, Instagram and our website. 5
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Kenyan innovator introduces Syntropic Farming to rebuild forests cover
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yntropic Farming is a farming revolution from Brazil originated by Ernst Götsch, a Swiss farmer and researcher. It seeks to cultivate resilient ecosystems by regenerating the soil without the need of long term external inputs. Through the biodiversity of the plants, the soil becomes rich and sequesters Carbon. There are no chemicals required as the balance is natural and the fruit and vegetables grown are packed with high levels of nutrition due to the life inside the soil. In Kenya, L.E.A.F. Africa, is working on making syntropic farming a staple in the region.
Sven Verwiel, the Technical Director at L.E.A.F says, “ This system offers a sustainable method in preserving and regenerating By Michelle Mung’ata our lost forest cover and solving the issue
Clients of Tamalu Farm in Timau displaying their produce
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of food insecurity on the continent. It also offers a viable source of income from the sale of produce.” L.E.A.F. Africa lives by their mission which aims to stimulate Africa’s transition towards positive impact agriculture at any scale; farming that encourages economic, environmental and social profitability at a landscape level. L.E.A.F. Africa has a demonstration site, Tamalu Farm in Timau, Kenya which is open to the locals and visitors to experience at first hand the outputs of Syntropic Farming and also teach local farmers some of the techniques. The farm has experienced over 500 visits since its inception in 2018, when it was acquired from a dormant flower farm. Some of the short term and long term benefits experienced by Syntropic Farming include: Crop yields are large; Income is steady over the growing season; Crops are chosen and planted to yield harvests in stages throughout the year and over years; Income increases over the years as the fruit and lumber trees start to mature; And land space is optimized. The production of vegetables is also done alongside fruit and lumber trees; Costs are minimized (pesticides, fertilizers and mechanized farm equipment are not needed); And soil quality improves. Soil tends to become more fertile, soft, aerated and workable. The farm is also less reliant on frequent rainfall because of improved water retention. The working environment is pleasant as the trees eventually provide partial shade. This model of farming
requires less weeding. The ground is covered with mulch, which suppresses grass and competitive plants. As the farm environment improves, finicky species can be cultivated. L.E.A.F. Africa joined the Kenya Climate Innovation Center (KCIC) in 2020 through the Commercial Forestry program in partnership with Gatsby Africa. Syntropic Farming is a way of farming that asks everyone as stewards of the land to live in harmony with nature. It asks that we learn from nature through imitating natural processes in order to produce food. It is a holistic approach working with nature’s processes and the dynamics of ecosystems. 7
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MSMES under green economy set to benefit from consulting firm
By Grace Akinyi
KBA and KCIC Group CEOs during the signing ceremony
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CIC Group through its consulting firm KCIC Consulting Ltd (KCL) is expected to provide advisory services to the MSMEs under the KBA Sustainable Finance Initiative (SFI) and Inuka Enterprise Program. This comes after recently signing a Memorandum of Understanding with Kenya Bankers Association towards achieving the common objective of advancing the green economy, the organizations aim to advance financial inclusion and technical assistance among the most vulnerable by building resilience and enabling mitigation. The consulting firm will oversee and advise both large enterprises and SMEs on how they can formalize their businesses and be
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investment ready. Globally, micro, small and medium enterprises have been identified as key drivers in climate change strategy, adaptation and mitigation particularly in developing countries. Their impact towards eradicating poverty, creation of new jobs and gross domestic product through tax revenues is evident and continues to be felt. Constituting about 90% in developing economies (The role of MSMEs in achieving SDGs) , there is an urgent need to provide technical assistance to MSMEs at different levels bearing in mind that investments in mitigation and adaptation measures are essential. KCIC Group in partnership with Kenya Bankers Association have made
strides by addressing these challenges head on. They are establishing new alliances, bold strategies, and innovative solutions that are enabling Kenya to adapt and thrive in the 21st century. Critically, the concept of green financing is not just “greening the economic sectors”, it is a means of achieving the Sustainable Development Goals, engaging a wide range of research, businesses and providing advisory services on ways in which specific countries can improve human well-being, increase social equity, reduce environmental risks and reduce ecological scarcities. This indicates the role investment firms play and are expected to play in accelerating the transition to an inclusive, low carbon green economy, providing appropriate information and advice on green technologies, generating growth and improving economic, social and environmental well-being along the Sustainable Development Goals (SDGs). With that in mind, KCL firmly believes that investments must be catalyzed by policy reforms and regulation changes. It proposes short to medium interventions, longer transformative interventions to support the sus-
tainable growth, entrepreneurial development and employment opportunities which are key in green economy sectors. ABOUT KCIC CONSULTING KCIC Consulting is leading a movement of government institutions, international organizations, Corporations, SMEs, national and international NGOs, among others to become leaders in their areas of operation by offering a wide range of consulting services (Research and capacity building, sustainability advisory, private sector development, monitoring & evaluation and impact evaluation, grant and fund management, development communication) and by providing top-performing, highest-quality, globally-competitive and effectively-convenient business solutions that are customised for you. We strive to make a difference in the world by providing sustainable solutions to some of the most pressing economic, social and environmental challenges across the region. Hundreds of international companies and NGOs who have interacted with KCIC Consulting say that they owe their long-term sustainable business solutions and topnotch communication innovativeness to us.
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Pictorial
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Captions
1. KCIC CEO Dr. Edward visits a clients exhibition stand during an exhibition 2. KCIC CEO Dr. Edward with officials from Kilifi County after AgriBiz MOU signing 3. KCIC and KEFRI take a group photo after the MOU Signing 4. Xynate Lab Limited CEO in his lab he’s inspecting his work equipment. 5. Justice Miller setting up the Sunken Solar water pump for demonstration of the pump to the farmers 6. Demonstration of an insect trap prototype by at Farm Track Consulting 7. Production Manager at Kamida Oil grinding sun flower to produce sunflower oil. 8. Christian Larsen, Founder of NutriEnto checking his crates of insect larvae 9. During an AgriBiz programme sensitisation forum in Isiolo County 10. An inspection of one of the farms being supported by Lentera Africa 11. Utake Coffee CEO explaining to HE Charles Michel about her product 12. Some of the products from Mace Foods, a KCV clients who processes dried foodstuff 13. EU Ambassador, Machakos Governor and KCIC officials visiting a client exhibition
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OPINION: Investment in commercial forestry is overdue
By Stephen Kihiko
Part of forest cover in Kenya.
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oday, the globe is faced by a myriad of challenges among them climate change and environmental degradation. In response to these challenges, environmental protection has received significant global attention. While environmental protection entails a wide range of actions, forest and forest cover forms a major front of action. The essence of forests cannot be overstated, they are among the world’s most productive land-based ecosystems and are essential to life on Earth. Besides, they act as Carbon sinks absorbing roughly 2 billion tonnes of Carbon Dioxide each year. Due to the essence of forests in environmental protection, the United Nations through the United Nations Strategic
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Plan for Forests 2030 provides a framework for action at all levels to halt forest degradation and manage all kinds of forests and trees outside forests sustainably. While calls to halt forest degradation are on top gear, human beings continue to depend on forests for timber, raw materials, energy, food among other uses. Reports indicate that over 1.6 billion people’s livelihoods around the globe depend on forests. Trade in forest products by 2004 was estimated at $327 billion with an annual value of wood of over $100 billion being sourced from forests. Beyond the direct benefits of forests to human beings, the Food and Agriculture Organization of the United Nations highlights that forests and trees support sustainable
agriculture by, for instance, stabilizing the climate and soils, regulating water flows, providing shade as well as providing a habitat for the natural predators of agricultural pests and pollinators. As such, forests can be seen to help ensure food security for hundreds of millions of people around the globe. These figures coupled with goals across different countries to increase forest cover has paved the way for commercial forestry. In Kenya for instance, the constitution through Article 69 (1) (b), emphasizes the need to increase and maintain a tree cover at a minimum of 10 percent of the total land area. Moreover, commercial forestry in Kenya is in tandem with the government’s Big Four Agenda. To be specific, the government’s housing goal depends on the forest sector to provide inputs in the form of timber, pulp and poles among other inputs. Similarly, the goal to achieve Universal Health Care will depend on the success of
the forest sector to provide raw materials for the pharmaceutical industry, absorption of pollutants and herbal medicine. The manufacturing sector will benefit from the forests through provision of raw materials, energy and water sources. Lastly, the goal to make Kenya a food secure country will depend on forests to conserve water, increase household incomes and employment among other contributions. Notably, partnering with small and medium-sized enterprises in commercial forestry will help close the wood supply gap in the country while at the same time increasing the forest cover. Besides, working with SMEs will improve returns for the commercial forest growers and consequently increased investment in forestry. Among the other benefits of partnering with SMEs in commercial forestry include increased employment opportunities for the Kenyan population, better productivity owing to the collaborative research opportunities and reversed forest degradation.
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KCIC gears up for a new project in commercial forestry
By Pamela Okutoyi
KCIC CEO Dr. Edward Mungai waters an inaugral tree during the signing ceremony between KCIC and KEFRI
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enya Climate Innovation Centre (KCIC) is set to begin the implementation of a new project in commercial forestry following a partnership with Kenya Forestry Research Institute (KEFRI). The agreement bound the two institutions to support innovative climate change solutions and sustainable forest management by conducting forestry research and development, environmental conservation and natural resources management, capacity building and knowledge management and technology development and transfer. KCIC CEO, Dr. Edward Mungai says that the project which is part of their new strategic plan developed in 2019 will support entrepreneurs and businesses around commercial forestry. “The only way that we can have sustainable forestry is by helping the government and the people of Kenya attain the 10 percent forest cover. Therefore, KCIC believes that, the moment you can show people how to make money from trees and forestry can be done in a commercial way, then it becomes a sustainable venture that will see the growth of our forest cover to 13 percent.
ideas around commercial forestry focused on tree planting, processing and seed propagation to come to us and share their ideas. Together with KEFRI, we will provide them with finances, an enabling environment and the technical assistance to scale their enterprises,” Dr. Mungai adds. “At KEFRI, we do research in forestry and over time, we will generate many technologies dealing with forests. We have gotten to a level where, to move forestry a notch higher, we need to think of forestry as a business and this is where the issue of commercial forestry comes in,” KEFRI Deputy Director, Dr. Joram Kagombe said. Dr. Kagombe further argues that the desired 10 percent forest cover will not be achieved on gazetted or public forests rather on people’s land and in arid and semi-arid areas. “Commercial forestry presents a competitive alternative land use option whereby people engaged can earn income to improve their livelihoods.
“The agreement bound the two institutions to support innovative climate change solutions...
“That way, we will have helped the government as far as the international obligations are concerned and also supported sustainable development. In addition, communities will get disposable income from commercial forestry,” Dr. Mungai explains. He further says that the agreement with KEFRI will help KCIC establish an innovation centre on forestry that will leverage on the facilities at KEFRI and financial assistance from KCIC. “We are calling upon people with innovative
Therefore, we are working with KCIC to create synergies that will see the development of an institution that can support commercial forestry in the country,” Dr. Kagombe says. When asked about the future of commercial forestry, Dr. Mungai is optimistic that bringing the private sector to invest in commercial forestry will make it self-sustaining. This, he says, is unlike before when it was done as a Corporate Social Responsibility practice. “Trees are resources that we need to go back to growing instead of just planting them. This means taking care of trees because they increase our disposable income, help us have a safe environment and deal with issues of climate change. 15
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Life Cycle Assessment as a tool towards sustainable agribusiness firms
By Chrispaul Muthaura
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saac Newton’s third Law of motion, states that; To every action there is an equal and opposite reaction. It is important to consider all actions involved in the establishment of an agribusiness enterprise. Think of an entrepreneur who wishes to invest in large scale farming. They then choose to engage in tea as the crop of interest. This decision will lead to a series of actions needed to actualise the project. First, they need to secure funds to lease or buy land. This is where Life Cycle Assessment (LCA) comes in. The action to invest in large scale tea production will release the enthalpy of potential hidden in the restive land. The reaction to this step will be directly equal and opposite and will trigger massive changes in the ecosystem. To understand LCA, it is important to scrutinise the various steps the entrepreneur takes to bring this tea plantation to fruition. In this case, tea production is the agribusiness of choice. To realise this dream, the entrepreneur will clear their land, therefore interfering with a host of diverse flora and fauna.
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initiated processes are both in situ and ex situ. The process of production will be long and winding. Before the owner can earn a profit, they will have used numerous inputs, destroyed vegetation and utilised human labour. It will take between two to five years before the tea produces optimally. The crop will be in production for a long time. To make sure the plantation is sustainable, the owner will need to address all the aspects of tea production from cradle to grave. It is crucial to ensure the processes of harvesting and packaging of tea are environmentally and socially sustainable. In the end, the packaging itself needs to be biodegradable or recyclable and the costs involved should be considered. Life Cycle Costing (LCC) which means capturing all the costs from the onset of project, or product up to the end user, putting monetary value to every de tail helps the firm embrace a circular way of addressing production.Such . kind of in-depth costing techniques will showcase points where the company is suffering cash pilferage due to an outdated process or systemic maladjustment. This will catapult the company to innovation and adoption of more sustainable processes.
The process of production will be long and winding ...
Maybe, felling of trees will disrupt birdlife, interfere with migratory routes, or destroy breeding zones for animals. At this point in the life cycle analysis, the owner needs to be privy to this and put ample mitigation measures that will address these changes. These are the impacts, pre-production. Indeed, the impacts for the 16
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Ultimately, firms that embrace LCA innovate
more, become more profitable and survive external shocks. LCA enables robust response to external turbulence and business storms. Another great benefit of LCA is provision of social safeguards, environmental protection and development of a people centred culture. LCA helps firms interrogate important fundamentals in the production cycle and gives insights to help compute costs incurred when setting up the business. There are environmental costs that are very subtle and can be lost in the process of establishing businesses. How can one minimise use of energy resources, water resources, chemicals, fertilizers, labour etc? Is there a way to make the underlying processes more efficient and sustainable? What is the cost of the new innovations and what are the savings in the long term for the firm? If LCA is incorporated in agribusinesses and
other production systems, there would be less incidences of aflatoxin laced products in the market, exports would not be banned because of exceeding Minimum Residual Levels (MRLs). The principles of LCA will help entrepreneurs adopt sustainable practices that will ward off a lot of issues pervading through the sector today. Since there is no fit-all solution to the challenges faced by agribusiness firms, to become sustainable, the businesses of today need to think and invest for tomorrow. Think in a cyclic way. Think and innovate from cradle to grave for products and from cradle to rational utopia for firms. Products have a life cycle, but businesses should last a lifetime. Only sustainable business will transcend generations. 17
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How farmers can use cover crops to tackle weeds
By Wanjiku Kimani
Mulching in the growth of maize to preserve water loss 18
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eeds are a constant pest, resulting in low yields that can cost farmers across Africa millions each season. Because farmers usually leave their ground fallow after harvesting, weeds sprout then negatively affect the next season’s crop. Even with tilling, seeds can remain underground and germinate once new crops are planted and watered. The cost of labour and herbicides can often eat into profits, leaving farmers unable to fund the next planting season. For organic farmers, the problem is more dire as they cannot use chemicals to tame the weeds and instead have to rely on manual labour. Most of their labour goes towards weeding, and the tropical environment means there are weeds growing year-round. The ongoing process of thwarting weeds presents challenges and farmers may feel they have few options. There is however a solution which comes in the form of other plants. By simply planting crops that work as ground cover, farmers can reduce the growth of harmful weeds. Instead of leaving the ground fallow, farmers can use cover plants that are then allowed to turn into mulch. Research into the most effective types of ground cover has helped farmers worldwide in combating weeds, and these methods are easy to implement. The ideal cover plants are robust and fast-growing, they provide a closed canopy and have allelopathic properties. Cover plants can repress weeds in two ways, mainly; When planted between rows of crops, where they minimize the amount of sunlight and water that weeds have access to, and as mulch which acts as a herbicide during the decomposition process. Mulch deprives weeds of light and space needed to grow, while at the same time keeping the soil moist enough for seedlings
to germinate, and increasing the nitrogen content of soil. These two methods are best used consecutively, meaning a farm will never be without some type of crop. Choose a crop that is usable either as animal feed like oats, or can be eaten such as beans and peas. Once one has harvested the cash crop, they need to allow the cover plant to continue growing then harvest the seeds upon maturity. The residue of the plant should then be mixed into mulch and spread over the farm, to create a layer that will deter future weed growth.
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Cover plants can repress weeds in two ways, mainly...
The soil should be covered until the next rains as this reduces the chances of weeds germinating. Farmers need to be careful to keep the mulch only around five centimetres thick to avoid suffocating cash crop seedlings. Farmers may also want to consider planting a variety of cover plants at the same time - such as mixing legumes and grasses. A combination of broad beans and oats has been shown to repress weeds better than any other combination of cover plants. The use of cover plants has been proven to be useful for farmers, especially small scale farmers who do not have the capital to pay for labour-intensive manual weeding. In addition, the ‘secondary’ plants can become a source of income, and provide your farm with much-needed nutrients, as well as reducing soil erosion. Cover crops could just be the best solutions to unwanted and potentially harmful weeds. 19
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Classifieds We support Micro and Small Medium Enterprises (MSMEs) through technical support and financing as well as consulting services. We are a one-stop center supporting innovative climate change solutions and accelerating the development of the clean-tech industry and sustainable development in Kenya.
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Horizon Business Ventures is keen on promoting biodiversity and mitigating climate change
By Vivian Kwame
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ocial enterprise Horizon Business Ventures (HBV) has taken a keen interest in promoting environmental conservation, biodiversity and climate change mitigation through their products and projects with the help of the local community.
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production. All our oils are ethically sourced and sustainably produced in Kenya,” says Naftali Mutahi from HBV.
The enterprise majorly deals with essential oils sourced from plants such as leleshwa, eucalyptus, cedar wood, frankincense, baobab, marula and cape chestnut.
Through their edino-botanical survey, the company has engaged the local community in the identification of trees and herbs that are valuable and can be used as a source for many products like oils, animal feeds and seed cakes. The company has also formed partnerships with forest workers, youth and women in agribusiness.
“We have farmers growing basil, helichrysum and geranium for our essential oils
This partnership provides them with an alternative source of income and contrib-
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utes to the preservation of the forest and its ecosystem. Although there is a ready market for the enterprise given the current demand from both local and international consumers, HBV has a few challenges in trying to satisfy the market needs. There is a need to maximize on their production, research and innovation advancement for better production. Naftali strongly believes that through their partnership with Kenya Climate Innovation Centre (KCIC), they will create a great impact since their goals are well aligned. “With support from KCIC, I know we can create a positive impact by promoting biodiversity, conservation and mitigating climate change given that this is what KCIC aims to achieve,” he says. Naftali also notes that counties like Laikipia and Nyeri are full of resources such as
eucalyptus and croton trees which are popularly known for their medicinal values and can be used for other purposes. This creates an opportunity for organisations like KCIC who are keen on commercial forestry to invest and partner with HBV to engage with local communities and promote biodiversity as well. Through the KCIC partnership, HBV also hopes to receive funds and opportunities to expand their enterprise and continue fighting climate change and promote biodiversity through their projects. “With KCIC by our side, we feel that we are better placed and that we have a great chance to expand our projects in order to create a sustainable world by fighting climate change, conserving the environment and promoting biodiversity,” Naftali concludes.
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