StartUp Magazine August 2019 by StartUp Magazine East Africa

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AUGUST 2019 STARTUPMAGAZINE.CO.KE

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Inside

FEATURE Genghis Capital: Realising Africa’s Dream Through Wealth Creation

OPINION Recruitment Traps in Fast Growing Businesses

STAWIKA CAPITAL’S QUEST TO BECOME KENYA’S FIRST DIGITAL BANK

TRAVEL

The Mysterious Kyamwilu Hill Where Water Defies Gravity

Raphael Kimeu, Founder and CEO, Stawika Capital August 2019

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August 2019

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August 2019

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Contents

16 Genghis Capital: Realizing Africa’s Dream Through Wealth Creation

18 STAWIKA CAPITAL’S QUEST TO BECOME KENYA’S FIRST DIGITAL BANK

30 Five Big SUVs That Mean Business

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Oroni Tendera writes about the mysterious Kyamwilu Hills where water defies gravity

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August

2019

Contents 22 10

ICT Digital Transformation Vital to Secure New Customers

Leadership Should You Grieve as a Leader?

Interview Edward Wachira muses on Genghis Capital’s wealth management interventions.

Micro-Finance Star Rentals Banks on Innovation and Excellent Customer Service to Thrive

Eco Friendly Homes Made Easy-The Precast Panel Technology

Business Training Capital Strategies Kenya Ltd: Harnessing the Power of African SMEs for Economic Growth

Eco-Friendly Homes

Human Capital Recruitment Traps in Fast Growing Businesses

Cover Story Coffee Break

STAWIKA CAPITAL’S QUEST TO BECOME KENYA’S FIRST DIGITAL BANK Robert Kimeu talks about his inspiring startup journey and why he is set to form Kenya’s first digital bank.

32. 34. 36. 37. 38.

Motors Travel and Leisure Book Review Pictorial Song Review

August 2019

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StartUp Magazine is published monthly. Copyright 2019 Kreative Hub Media. All rights reserved. No part of this publication may be produced or transmitted in any form including photocopy, or any storage and retrieval system without publisher's permission in writing.

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INSIDE

>Innovation

A Sure Bet to Keep Africa Moving Forward

> Koto Housing

Build Your Dream House in Only 21 Days

> Interview; Andrey Yakunin Understanding the hospitality market in Russia

>Travel & Leisure What to Know about the Marine Parks at the Coastal Kenya

The Driving Force To a Successful Family Business Esther Muchemi, CEO and Founder, Samchi Group of Companies

January 2018 I startupmagazine.co.ke

Managing Editor Sylvester Habil Okumu sylvester@startupmagazine.co.ke

Photographer Versatile Photographers

Associate Editor Adisa Hudson Oroni Tendera

Creative Designer Kreative Hub Media

Contributors Njeri Muchunu Tamer Farouk Shalini Ghadia Martha Karimi

Published By

Business Development Washingtone Terry Nickson Juma Marketing Executive Irene Okoth Operations Simpson Ayodi

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Contacts 4th Floor, Bihi Towers, P.O Box 3875-30200, Nairobi Kenya. Cell (+254) 724 113 683 (+254) 776 061 644 Email: info@startupmagazine.co.ke Website: www.startupmagazine.co.ke StartUp Magazine EA @StartupMag_EA

The views expressed in this publication are those of the authors and do not necessarily reflect the position of the publisher. Readers are advised to seek professional advice before acting on any information contained in this publication. Important Information for Contributors to StartUp Magazine By submitting content before publication you confirm that: (a) You (and/or other named contributors) are the sole author(s) of the content submitted; (b) The content you submit is orginal and has not previously been published (unless you specifically advise us on the contrary); (c) You haven't previously licensed the use of the content you submit; (d) So far as you are aware, the content submitted will not infringe any third-party rights, be defamatory or in any way illegal.

Editor’s Pen

1.Reading - Reading relevant material often brings into perspective situations and solutions that we seek. As a leader it is always a good idea to keep up with the best practices of dealing with people and situations. It helps us expand our horizons and absorb nuance for different contexts. Some recommendations I would like to make are ‘Give and Take’ by Adam Grant, ‘Think Big’ by Ben Carson and ‘Screw it, Let’s do it’ by Richard Branson 2.Meditation - People often wonder what meditation is. There are different types of meditation - the broader categories are physical and mind related. Here I am specifically referring to the mind related one. Meditation is a simple technique that helps you to listen to your mind and feel calm. This is an essential attribute for a leader who is constantly faced with diversity in the workplace. If you are a beginner, consider practicing guided meditation (you can search

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Best Practices for a Leader – How do we Face Diversity? for audios on YouTube) and can consider practicing for 5-10 minutes a day. This will help you become mindful and focused through the day. With further practice, you can progress into advanced techniques that will not only help you to be mindful but you may get inspirations (these may be ideas / solutions) in the context of your work / personal life. 3.Physical exercise - daily exercise helps us to flex our muscles and improves the flow of blood in our bodies. This in turn improves energy levels and brain functioning that helps in boosting productivity. Any leader could use the extra energy levels looking at the amount of pressure we deal with on a daily basis. 4.Rest and reflection –‘I have a deadline to meet, ‘I have to submit a report to my boss’ - do those lines sound familiar? Every leader may at some point feel guilty for taking time off owing to these factors. Guess what, taking some rest and time for reflection may actually help you achieve your goals more effectively. We all feel we never have enough time to complete all our tasks. So how do we make time for rest and reflection? Well, the answer is that rest and reflection actually open up our mind and give us fresh perspective on

situations. Ideas and answers that we cannot find with a busy and stressed mind often come when the mind is still. Take time daily to think about absolutely nothing (this can be 15-30 minutes) and see how a sudden idea or solution just pops up. It is important to note that you cannot force the idea to pop up but have to make sure that you completely surrender to rest, so that you allow your mind to have space to generate these ideas. 5.Mentor - it is often a good idea to have an individual who has been in a similar position whom you can seek guidance from. Speaking to someone who has gone through what we are undergoing may help us have an advanced method of keeping up with things and avoiding situations and dealing with others in a desirable manner. Of course there is no perfect way of doing something but leaders who have had experience may be placed in a good position to provide us with the closest solution. A mentor can be anyone from a colleague at work, a friend / relative that has been in a similar position or an industry leader. Here’s to wishing you a leading month ahead! Shalini Gadhia gadhiashalini@gmail.com

August 2019

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StartUp Stories

Letters to the editor “I find satisfaction in changing the landscape of a place, changing how we build by using the right materials in the right areas. Architecture should complement its surroundings, as should interior design.”

Zameer Verjee CEO of Studio AZ KENYAN Verjee founded Studio AZ, an interior and exterior design firm based in Nairobi, in 2012 with the £400 he saved at the university. Five years later, he has turned the design firm into a $500,000 (Sh51.5 million) venture with more than 10 full-time staff and 75 subcontractors.

In 2017, he was named among 30 most promising entrepreneurs for 2017 by the Forbes Africa list. He has also made it as one of Kenya’s top 40 under 40 by Business Daily Africa.

Today, the company has 12 full-time employees and is worth about Sh 400 million ($4 million).

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August 2019

We need more copies in Lodwar Besides running impressive features you guys should also care about reaching your readers deep and wide across Kenya. I’m a resident of North Rift, in particular Lodwar and I have never seen your copies in these areas. Please work on that.

“I have had the passion to enter into entrepreneurship and particularly sell products that would help Kenyans improve hygiene,” he said.

He founded the company in 2013 and has grown in leaps and bounds to establish a footprint in the region. Its flagship products are dish washing liquid

I am an ardent reader of the magazine. In the past, you never used to publish any article on leadership. But this year, you seemed to be on a different pedestal. You introduced leadership pieces that even got me more hooked. Njeri Muchunu is penning articles on leadership aspects that are fundamentally ignored, yet so important in business and political leadership of today. We need more of her pieces.

robi that specializes in conducting tours and travel worldwide.

Jackline Cherop is the co-founder and the managing director of Densey Tours and Travel company, one of the leading African travel houses based in Nai-

Shah is a Kenyan of Asian heritage and the founder of Kronex Chemical Limited. His firm, a fast-growing startup, manufactures low-cost household cleaning products.

Lydia Achieng’ Business Lady, Nakuru

Anthony Wangangi Business Leader, Nairobi

Jackline Cherop, CEO of Densey Tours & Travel KENYAN

Ronak Shah, CEO, Kronex Capital KENYAN-ASIAN

I read the last edition of StartUp Magazine and was impressed to see how Zenka Finance is championing financial inclusion. I use the app occasionally and I must confess it is the best ever among its peers in the region. Who gives you a first loan free without interest? Simply no one! But Zenka are pushing the boundaries.

Articles on leadership timely

“It is easier to start a business in an environment you understand and this will make it easier to cut unnecessary costs as you can do most of the work by yourself as opposed to employing lots of people when starting.”

Born on the foothills of Mt. Elgon in a humble home, growing up Jackline Cherop never imagined in her wildest dreams that one day she will be running a successful business and giving back to the society.

Disruption in Logistics

and a multi-purpose detergent. The products have been embraced widely among Kenya’s lower middle-class.

Eddie Atyang’ Via email, Lodwar

HAVE YOUR SAY ONLINE The editor welcomes reader’s opinions but deserves the right to edit them for publication. Please email to info@startupmagazine.co.ke More comments are published online about news stories published on startupmagazine.co.ke

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News F5 Networks Champions Kenya’s Digital Transformation capital. Given Kenya’s growing adoption for cloud computing, we believe that application capital is a key driver for differentiation, innovation and value creation,” said Alain Tshal, District Sales Manager – Sub-Saharan Africa, F5 Networks, speaking to an audience of customers, partners and industry experts. According to Tshal, true digital transformation can only occur if organisations understand and invest in the concept of application capital, particularly in the context of multi-cloud application services and associated infrastructures.

Alain Tshal, District Sales Manager – Sub-Saharan Africa, F5 Networks

F5 Networks hosted its inaugural East Africa Solution Day in Nairobi on July 23rd 2019 to highlight how application services in multi-cloud environments are enabling digital transformation and growth in Kenya. The company also shared insight on its latest solution offerings and news, including the recent acquisition of NGINX. “The true value of the modern enterprise resides in its applications and data. We call this application

“Today, application services are software-defined, loosely coupled, and easily consumed therefore enterprises and government organisations have an opportunity to deploy infrastructure, application development and management tools, as well as processes, that balance effective controls with the freedom to innovate,” Tshal explained “It is now possible to attach individual services to applications based on specific needs. It is also possible to achieve consistent quality and security across entire application portfolios. This is critical at a time when much of the user experience is digital, delivered via the cloud, and increasingly built by developer teams outside of the IT organization.”

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August 2019

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BUSINESS TRAINING

Capital Strategies Kenya Ltd: Harnessing the Power of African SMEs for Economic Growth for Africa’s teeming population,” says Pius Ng’ang’a, the founder and CEO of Capital Strategies Kenya Limited. It is clear that unlocking Kenya’s growth potential will require sustained investment into its SME sector. “Imagine the possible impact if training and developments of SMEs in Kenya were on par with countries like the United States where roughly 70 per cent of small businesses report being able to access business training and development services,” says Pius.

t is commonly accepted that the drivers of economic growth and long-term sustainability for emerging markets lie in the potential and effective development of the micro, small and medium enterprise sector. Africa has an estimated population of more than 1.3 billion people that’s growing at over 2 per cent annually in most countries. More than 50 per cent of the people in many African countries are aged below 25. This population has a growing need for the services, jobs and economic growth mostly provided by locally based SMEs, yet these enterprises face an array of challenges that far outstretch those of their counterparts Startupmagazine.co.ke

August 2019

in developed countries. One of the greater challenges however is lack of business training, mentoring and development, which remains a hurdle for SMEs and entrepreneurs in Africa. Addressing the issue has been a priority for governments and regional organizations for several years. A notable example is Capital Strategies Kenya Limited, which runs programmes designed to support the growth and development of micro, small and medium enterprises. “As a businessman, I fundamentally believe that small businesses are the lifeblood of the African economy. There is need for African business and policy leaders to rally to support SMEs, as only they can provide the jobs needed

“To support enterprises that last, our holistic programme has four core pillars-business training, mentoring, monitoring and evaluation services,” explains the executive whose real passion is to empower entrepreneurs to change livelihoods.“I feel fulfillment when I see entrepreneurs run sustainable and profitable enterprises.” The firm’s social impact solutions are varied and support entrepreneurs/startups through idea formulation, establishment, execution and growth of their businesses. Against this background, Capital Strategies has partnered with International Labour Organization (ILO) to run its programme Start and Improve Your

11 Business (SIYB) in the region. “We are a Partner Organization of the ILO/SIYB Programme. SIYB is currently the leading global business management training programme with a focus on starting and improving business as a strategy for creating more and better employment for young people with a global reach” says the CEO. The SIYB programme is currently structured into four separate training packages, which are designed to respond to the progressive stages of business development as noted by ILO. “Generate Your Business Idea (GYB) is intended for people who would like to start a business, and who, through the training, develop a concrete business idea ready for implementation. With studies indicating that close to 70 per cent startup die in their formative years, it is a clear indication that many people rush into business without really validating their business ideas. This programme aims to ensure start-ups thrive,” says Pius. Start Your Business (SYB) is for potential entrepreneurs who want to start a small business and already have a concrete business idea. The programme is a combination of training, field work and after-training support, and helps participants assess their readiness to start a business and to prepare a business plan and evaluate its viability. Improve Your Business (IYB) introduces already practicing entrepreneurs to good principles of business management. Its six modules (marketing, costing, buying and stock control, record keeping, planning for your business, and people and productivity) can be taught individually or all combined in a full course. Expand Your Business (EYB) enables

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growth-oriented small enterprises to develop a business growth strategy through training interventions. The SYB and IYB packages also include the SIYB Business Game, a practical simulation tool to help participants understand the realities of starting and running a business within the confines of a classroom. The EYB Business Game simulates an expanding business during training to help participants experience the impact of strategic decisions on their business operations.

PG. 12

LEASING Star Rentals Banks on Innovation and Excellent Customer Service to Thrive

“Training plays crucial role in skills and development of entrepreneurs and small businesses. However, creating effective support policies to ensure sustained growth is not limited to training alone but other measures such as mentorship, monitoring and evaluation,” offers Pius. The firm has robust training programmes that enable entrepreneurs to implement what they have learned in training. “We select a mentor based on the needs of a business. They then work together for a period of six months. A mentor guides a business to fix its business gaps and build on its strengths,” shares the executive adding that, “If a business has gaps in managing or access to finance and record keeping, we hook them up with a mentor with good financial management skills.They work with entrepreneurs to strengthen their record keeping and financial management system. They also guide them on key steps required to access finance to fund their growth.” The organization later links these businesses with potential financial institution to help them unlock financing. Pius comments that it has been very fulfilling to see entrepreneurs get access to finance to wheel their growth as a result of his firm’s mentorship interventions.

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INTERVIEW Dave van Niekerk on Building Africa’s Most Formidable Fintech

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DIGITAL CREDIT HOW ZENKA FINANCE IS CHANGING DIGITAL LENDING IN KENYA

August 2019

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MICRO-FINANCE

Michael Monari, CEO LONGITUDE FINANCE

Giving a Financial Lifeline to Micro Entrepreneurs Words Oroni Tendera

Longitude Finance focuses on making a positive impact in the society by providing micro loans.

ne of the persistent challenges facing small and medium sized enterprises (SMEs), micro entrepreneurs and organized groups is lack of access to credit to meet their varied needs. The statistics are scary. Data from the Kenya National Bureau of Statistics shows that 52 per cent of all loan applications made by SMEs were rejected by banks and other financial institutions. To change this narrative, Michael Monari set up a micro lending institution, Longitude Finance, which focuses on making a positive impact in the society by providing micro loans. Startupmagazine.co.ke August 2019

“Majority of SMEs and organized groups need two things to grow; access to affordable credit and structures. With this hindsight, we are partnering with like-minded companies and organizations to transform people’s livelihoods,” says Mr. Monari, adding that they don’t just provide finance to start-ups but also train them to manage their business circle and risks. “I have worked as a banker across over 10 countries in Africa and I have realized that many small to medium enterprises lack the very basic and simple financial management skills which is key for their growth and sustainability,” explains the CEO.

Strategic partnerships One of the key partnerships is with Copia, an American online store that targets women. “Before the partnership, women would organize themselves into groups to save and buy products. With our entry this has changed. Copia now delivers these products to their doorstep and they repay later via Longitude Finance,” he says. The partnerships has made it possible for these women to access farming and household items like water tanks, water pumps, chuff cutters, furniture, cooking stoves, wire mesh, iron sheets and other domestic items. The items have been instrumental in improving the quality of their lives, says Mr. Monari. The firm is also working with M-PAYG Solar, a Danish company that supplies Solar Home Systems to off-grid communities in rural Kenya and SMEs in peri-urban areas. The solar systems are given to households that make repayments in instalments while using the solar gadget. “We are also negotiating a new partnership with Water.org to support targeted communities across the country to access clean water and live in a clean environment,” explains Mr. Monari. Besides, the firm is further working with Monarch Insurance to help riders buy insurance products for their bodabodas, a facility which the CEO says has been widely embraced. “The law requires bodabodas to have insurance which many of them lack. With our intervention, they are able to acquire the insurance and pay a daily fee of Sh 50 to cover them against unforeseen risks,” he says. It recently partnered with Afya Poa a provider of affordable inpatient medical cover underwritten by Sanlam to provide the cover to their clients to ensure mini-

Mr. Monari presenting a training certificate to a client mal business disruption in case medical emergencies. The institution has also partnered with Mars Group, collaborating with the University of Oxford and providing microloans to distributors in Nairobi, Nyeri, Kisumu and Nakuru for the purchase of bicycles. Besides these, another partnership with UNHCR is in the pipeline. The project aims to support refugees living in urban areas and camps in Kenya to runs profitable small businesses. For the three years it has been operational, Longitude Finance has become as darling to the youth and women who are looking to service government’s contracts. Most of them allude to its quick processing of loans, personalized services, a flexible repayment model, low interest rates and a supportive customer care. “It is a simple process for you to get a loan from us. We only require the necessary papers,” says Mr. Monari who holds a master’s degree in global management from the University of Salford, in the UK, an executive diploma from the University of Oxford and an advance entrepreneurship certificate from Strath-

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Some of Longitude Finance clients pose with some of its staffers after a training session more Business School. The firm’s unique business model has seen it appeal to thousands of borrowers who are now processing their 11th loan. “The default rate is below 10 percent and we have some regions like Murang’a whose repayment method is 99 per cent,” says the CEO. He is leveraging on his extensive experience in the industry to help build sustainable enterprises and livelihoods. He says most micro and small businesses collapse under the burden of heavy loans because financial institutions have stiff structures for repaying credit. This informed the firm to develop unique credit models. “For instance if a client is unable to repay, they come to us and we restructure the repayment schedules.” Mr. Monari set up Longitude Finance after an illustrious career in the banking sector. “I used a savings of Shs 25 million to set up the microfinance. But that wasn’t enough as lending requires huge capital investments.” So he embarked on a difficult journey to convince investors to buy into his idea. “It was difficult at first but many investors joined us along the way due to our professionalism and service excellence,” he says. The firm now employs 18 staff and op-

erates branches in Koinange Street in Nairobi, in Mombasa, an agency office at Murang’a Catholic Teacher’s House, in Kitengela and its head office in Nairobi’s Kilimani. Longitude Finance raked in a turnover of more than Shs 100 million last year, with Mr. Monari attributing this impressive growth to its strategic partnerships spanning varied sectors of the economy. The firm plans to have a footprint in Rwanda, Uganda and South Sudan in the next two years. “You can only grow as an organization when there is energy,” says the executive who occasionally mentors his youthful staff members. He adds, “We are the only institution that has a robust internship programme that aims to teach students and young individuals key skills that they can use to navigate a complex business arena.” As an experienced CEO, Monari has interacted with many entrepreneurs to understand their plight. In order to establish sustainable enterprises, he advises them to be disciplined in keeping times and managing the little money they make, read a lot and consult widely before making any decision.

August 2019

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INTERVIEW

Edward Wachira, CCO GENGHIS CAPITAL

Genghis Capital: Realizing Africa’s Dream Through Wealth Creation

Words Sylvester Okumu

f you were to sift through the wealth management and investment advisory spacein the last two decades, it is easy to see how it has changed considerably. It continues to be one of the most dynamic and growing fields in finance. Many people are now yearning to achieve financial independence and create wealth for themselves and their family. While most people perceive wealth management process to be a smooth ride, it is very different in reality. Because markets do not move in a straight direction and unexpected factors usually get

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August 2019

in the way of savings. In a bid to demystify wealth management and understand why investors need to determine their monetary goals and develop actionable plans that could help them achieve financial success, StartUp Magazine sat down with Edward Wachira, Chief Commercial Officer at Genghis Capital and a founding managing partner at Pamoja Capital. He mused on the journey so far, the importance of wealth management and Genghis Capital’s plans for the future. What’s your background and how did

you get where you are now? I am a certified public accountant, financial analyst and investment banker. I had the good fortune of working for Kenya Airways both in Kenya and abroad, engaging partners and building networks in more than 20 African countries. I also worked in Netherlands between 2002 and 2003, managing strategic partnerships between Kenya Airways and KLM. In the strategic corporate planning assignments across Africa, I led negotiations and structured commercial agreements with partners resulting in the expansion of the airline into Angola, Mozambique, DRC in Africa, and Saudi Arabia in the Middle East and Australia in the Far East. I was still in aviation when I foresaw emerging opportunities in investment banking in the region. There was need to move away from traditional classes of investment and wealth management to alternative kind of investments that are more productive. At this point, I was doing financial advisory on the side together with a group of partners. Foreign investors were also flocking to Africa looking for viable investment opportunities. There was need for a disruptive investment manager that would make use of technological innovations to help investors determine their monetary goals and develop actionable plans that could help them realize their financial objectives. Against this background, together with a group of partners we startedPamoja Capital, first in Johannesburg, South Africa and later in Nairobi, Kenya. I quit my aviation job and joined the business as the Managing Director in 2011. Give us an insight into Genghis Capital and its mandates? Genghis Capital is a Capital Markets Authority (CMA)-licensed investment bank that started off as a brokerage firm at the Nairobi Securities Exchange (NSE) in 2008. Over time, we have grown

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tremendously expanding our services beyond stock brokerage to include provision of Unit Trust Funds, Fund Management, Institutional Trading, as well as Corporate Finance Services. In 2016, Pamoja Capital was in the process of making an application to the CMA to set up an investment bank to help investors navigate the sophisticated business arena in the region when an opportunity popped up. Genghis Capital had faced liquidity challenges when its principal banker, Chase Bank was placed under receivership. We acquired Genghis in August 2016 under a special purpose vehicle called Overtime Capital Limited that we had established at Pamoja Capital. What is your competitive edge? When we acquired Genghis, we resolved to be different and unique. We identified mechanisms on which we would upset the market while meeting investorsâ&#x20AC;&#x2122; expectations. At the time, technological innovation changing demographics, convergences of industries among other factors were starting to reshape the financial advisory and asset management industry. We invested on innovative technology and AI, which has fundamentally changed how we do business, relate with customers and stakeholders. The vast proliferation of data is changing the way that institutions ultimately make business decisions. It has helped us secure a niche market and do things differently, by being able to aggregate value in the society and redefine how people see money and investments. If you have great products in a niche, great people with a high performing culture and great processes, you can grow very fast and create an exceptional brand. That is what we have done. Tell us about your relationship with customers and how you guide them in achieving financial success?

â&#x20AC;&#x153;

The vast proliferation of data is changing the way that institutions ultimately make business decisions. It has helped us secure a niche market and do things differently, by being able to aggregate value in the society and redefine how people see money and investments.

â&#x20AC;?

Many people want to or are doing investments hands on. They depend on their own knowledge and understanding not knowing that they are susceptible to their own biases and misconceptions. Markets are complex, they do not move in a straight direction and unexpected factors usually get in the way of savings. You need a professional fund manager or investment advisor to navigate the investment landscape. Professionals have more insights on the market, more experience and have the right networks to do the job right. They would definitely give you a peace of mind because your portfolios are in the right hands. This will also protect you from fads investments that are characterized by a temporary excessive enthusiasm for a certain investing style, which is usually unsustainable in the long term. The quail bubble is a great example of an investing fad, which eventually burst here in Kenya. In terms of delivering what your customers want, is there anything specific that you like to focus on? In many respects, employing technology has helped us identify a market niche, understand it better, channel the right products and drive investment returns. With the help of AI and data analytics, we are able to understand the behaviors of customers, their lifestyles and what they want and give them high quality advice. Simply put, we manage funds for re->> August 2019 Startupmagazine.co.ke

16 on the economy? The use of data and AI has aided automated advisory. Quality data helps us not only to better understand our clients but also to position the best product for them.

INTERVIEW

Technology has also made it possible to distribute investment products to a wider market in an efficient and cost effective way. Initially we would need to have multiple physical offices spread across the country to increase our touch points. Today, that is not necessary, because with tech our products can be accessed widely.

tail customers, high net-worth individuals and institutions or corporations. We make well-timed investment decisions decision for these clients to grow their finances and portfolio. We are able to diversify our clients portfolio based on their varied financial objectives. Based on our experience in the industry, we are able to give them access to higher value options with better capital appreciation prospects, as well as mitigating the associated risk. On a practical level, why is wealth management important? A client will benefit from a holistic approach that brings together several services to meet their specific financial goals and objectives. Wealth managers enableone to participatein the economy from whichever point they. With our revolutionary G-Kuze App, you can invest from as low as Kshs 500. Itâ&#x20AC;&#x2122;s all-inclusive and allows any kind of investor to participate in building the economy. Startupmagazine.co.ke

August 2019

Many investors would wish to invest into various markets but they lack the knowledge, information, time and skills to do so. As experienced managers and advisors, we help individuals and organizations to enter into certain markets while keeping in mind their investment goals and risk averseness. We enable one to plan for their future. With retirement planning, you are able to plan and understand your expenses in old age and cushion yourself against any financial uncertainty. As we plan to have a family and educate our children, it is very critical to prepare for their future wellbeing. We also help investors keep track of their assets, whether liquid or fixed. Investors will know where their assets are, how they are being put to use and any changes made to them. Consequently, recovery or transitioning of assets can be done more efficiently, thus, leading to higher returns. Which emerging trends do you see in wealth management and their impacts

Africaâ&#x20AC;&#x2122;s population grew at an average annual rate of 2.6 percent between 1950 and 2014, much faster than the global average of 1.7 percent as estimated from UN population projection data. Africa will also account for 80 percent of the projected 4 billion increases in the global population by 2100. The accompanying increase in its working age population creates a window of opportunity, which if properly harnessed, can translate into higher growth and yield a demographic dividend.The impact of demographic change could be even greater when combined with investments in areas like food production and nutrition among others. What is your opinion about foreign investments coming to Africa? How should Africa prepare itself? Local investors are missing out on huge opportunities that are being taken out by foreign agile investors. How do you see your business evolving? Whatâ&#x20AC;&#x2122;s next for Genghis Capital? We will aggregate more funds, deploy them prudently and generate more returns for our clients. We also want to make use of robust investment tools and technological innovation to redefine how business is done, expose our investors to emerging opportunities in the region and create a better quality of life for the people.

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COVER STORY

Raphael Kimeu, CEO STAWIKA CAPITAL

STAWIKA CAPITAL’S QUEST TO BECOME KENYA’S FIRST DIGITAL BANK

Words Sylvester Okumu

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August 2019

enya has been at the cusp of rapid growth in the last decade supported by strong government, private sector and foreign investment. Key drivers of this development include the ICT sector expanding from 10 per cent to 22 per cent in the same period; with

mobile adoption and internet connectivity at 91 per cent and 84 per cent respectively. In the midst of this revolution, Raphael Kimeu was working as a credit manager with an illustrious career in the banking sector. Around the same time, Kenya’s

“

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banking sector was undergoing a metamorphosis - On 14th September 2016, the interest rate cap law aimed at making credit affordable to the ‘mwananchi’ came into effect. The law put a ceiling on lending rate by banks and other financial institutions to at most 4% above the Central Bank of Kenya (CBK) base rate, known as the Central Bank Rate (CBR) which was as a result of high costs of borrowing which deterred access to credit by a large section of Kenyans. As expected, the demand for credit shot up immediately, before taking a downward trend by February 2017 given the now stringent measures put in place by lenders to manage risk. This saw Kenyans seek alternative avenues of access to credit and this is when Stawika was mooted. “As a credit manager, you interact with customer data, are part of the credit decisioning process and most of all, As Kenyans we share our frustrations and also seek counsel from our friends. The rumblings and insights from these opened my thought process on how I could alleviate the hurdle that was quick access to credit – especially for businesses; micro and small entrepreneurs who could not access credit from formal banking institutions inspite of the fact that they were running profitable businesses. The predicament was also not restricted to businesses but spilt over individual borrowers, an emergency to deal here, purchase decisions that arose before pay day or better yet? Running out of cash at the counter and having your goods returned to the shelves. “Imagine if you had quick access to credit on demand and handle your transaction discreetly?“ says the founder and CEO of Stawika Capital during an interview with StartUp Magazine. “I started to think of how I could give access to emergency credit and timely financial solutions to fund the growth of small businesses” he adds. It is these experiences and the ubiquity of the mobile phone that drove Mr.Kimeu to set up a digital Micro-credit firm, Stawika Capital, whose focus is on access to credit

especially by Small and Micro Enterprises, by analyzing data that has not been considered by conventional lenders to expand the financial market. “Stawika is a Swahili word that means prosper. Our business in the business of ensuring and driving prosperity among Kenyans through the provision of credit, digitally” he says. Statistics from the Central Bank of Kenya indicate that there are more than 48 million active mobile money accounts with a transaction value of USD 3.6 billion in 2018 alone. This highlights the impact of mobile money pioneered by M-pesa in driving financial inclusion and the race to turn mobile phones into banks for the financially excluded popularly known as the ‘unbanked’. The continued growth of mobile money has fueled the adoption of mobile payments across major sectors of the economy such as financial services, retail and wholesale trade. There is no denying that this growth has enabled startups to set up revolutionary business models and disrupt the status quo, avers the CEO. “M-pesa and Facebook have pioneered massive disruptions in their specific industries, opening up adjunct sectors of the economy to a realm of opportunities.” With hindsight in banking and foresight in the place of technology in the future of banking, Mr. Kimeu started formulating a disruptive business model that would not only take advantage of the convergence of these two, but equally boost the utilization of data for financial inclusivity. “Our business was founded on mobile money, we are now morphing into commoditizing data as a means of guiding financial decisions. When you look at Credit Reference Bureaus, you realise the immense data in their custody which help analyze credit patterns of our customers, their risks and score them accordingly. However, is there more complementary data that can boost what is already existing to bring in more Kenyans to the financial fold? Even then, what more can we do to boost the finan-

Stawika is a Swahili word that means prosper. Our business in the business of ensuring and driving prosperity among Kenyans through the provision of credit, digitally.

”

cial value of those already included but without access to mainstream banking?” This is Stawika’s new frontier. At the time of set up, other digital lenders had just set up shop in the country. “So, we ran a three-month pilot and the reception was overwhelming, proof that the market was for a purpose-driven digital lender. The Stawika App is available on Android and iOS platforms and a USSD platform which will include those on feature phones, that continue suffering the misfortune of inaccess. Stawika is equally piloting their SME credit solution, launched in June this year; integratingconventional credit scoring mechanisms and social capital factors such as the value of the business, volume of transactions per day, personal spend and endorsement from existing chammas or informal/formal groups. “As a requirement for every business, the place of R&D and product development is the most critical one. This comes from the basic knowledge that at any given point; you’re dealing with 3 customer segments – one that knows you exist and is content; another who discovered your products and is on the trial window and the completely clueless one. The second segment elicit excitement at acquisition given that they move in their droves and could give you a false sense of comfort. They also have the potential to undo your business in the shortest time possible, and you must therefore spend a significant amount of time and resources, following their habits, matching trends, listening and engaging with them” Armed with this knowledge, we carried August 2019

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20 out a survey on our platform and arrived at the fact that many people borrow to finance a business. There was a sequence of customers who borrow regularly in the morning and repay in the evening or within a certain period or time of the month, which went to show the type of borrowers we were dealing with” says the executive. But Stawika’s products are not only a darling to entrepreneurs. Many other people borrow to attend to domestic and personal needs; pay school fees, buy household items, offset hospital bills and even other emergencies. This has seen the lender develop a long list of borrowers from across section of sectors thanks mainly to the flexible interest rates, simplicity of their products and flexible repayment plan. “Lending is a mutual relationship and our greatest task is that of engaging our customers, analyzing their behavior to understand and better yet pre-empt their needs. Conducting business in this space needs a human face and this is our key driver” he says. “Such successes and the impact of our financial intervention fulfils me as the visionary and my team as the radar to this ship. It is also a testament to the future of banking which is the marriage between legacy banks as we know them and the new bank which is technology and digital financial intermediation” Stawika was voted as the best instant mobi loan platform at the Digital Inclusion Awards in 2018 and is now on a growth pedestal something which Mr. Kimeu attributes to three things summed up in the firm’s core values; Building with Commitment. Service with Resolve and Living for Growth.

Mr. Kimeu at his office to Micro-Enterprises in Kenya before expanding toTanzania, Rwanda and Uganda. Mr. Kimeu is confident of the export that is Stawika to other continents in the long term. Lessons learned •If you want to establish a business, start where you are with what you have. You just need the right idea and everything else will fall into place. •Find a pain point and offer a viable solution. Investors always look at the value proposition. •An idea remains just that without an

As much as the digital space is morphing by the minute, and very competitive, it doesn’t scare him. “We are committed to our customers and clear on our transformation journey into a digital bank. We are about people, and People do not need banks but banking services” As Stawika aims to demystify lending, moreso data backed financial solutions Startupmagazine.co.ke August 2019

A micro business in Kenya

execution plan. Understand your market as the foremost factor in driving your strategy. •Do not limit yourself to a unique idea; you can look at an existing idea and offer improvements to an existing solution. •Work with the right people. Business is always about the people you work with and the people you serve. Great Employees and Investors. •Mentorship; Nobody was ever said to know too much, you just never learn enough! •You Must Think. But don’t just Think, Think BIG!

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August 2019

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ECO-FRIENDLY HOMES

Eco FriendlyHomes Made EasyThe Precast Panel Technology

A house made from precast panel technology

wning a home remains a faint dream for most low and middle-income Kenyans. A look at the cost of houses on sale across Kenyan media leaves the average Kenyan discouraged. The cost of owning a three-bedroomed house across many suburbs in Nairobi is in excess of Kshs 11 million. However, a locally owned real estate agency aims to change this narrative and make it possible for Kenyans to own affordable homes.

Alex Kariuki, CEO ANKAR PREFAB-SOLUTIONS Startupmagazine.co.ke

August 2019

Ankar Prefab Solutions is a pioneer of prefab modern modular homes in Ken-

ya. Based in Ruiru in Kiambu County, the company experience and knowledge in both residential and commercial property markets in Kenya has seen it provide a memorable experience to homeowners for the last 5 years. A prefabricated house is a technology that has been widely embraced around the world over, says Alex Kariuki, the founder and CEO of Ankar Prefab Solutions during an interview with StartUp Magazine at his office. â&#x20AC;&#x153;The technology has been widely used in the construction of social housing, housing estates, vil-

23 las, cottages, bungalows and residential houses among others. We set up shop locally with a promise to offer clients a diverse range of prefabricated housing solutions.” The firm’s objectives are in line with the government’s affordable housing programme, one of the pillars of the ‘Big Four’ agenda-which aims to ensure at least 1 million Kenyan families become homeowners. The government has further embraced the use of prefab panels for construction of public houses as seen in Kenya Railways staffer quarters as well as county government houses in Nairobi’s Maringo and Majengo, says Kariuki. Prefab panels are a quick built and cost effective housing solutions for homeowners, “A house construction projects starts like a traditional building where we excavate and put up a foundation.

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modern structures and designs, long life, high quality materials, energy-efficiency, and cost-effectively. Ankar Prefab Solutions has enough expertise and capacity to deliver the technology to Kenyans across the country. “We have the technology locally with a well trained team that is better placed to execute any kind of housing project.” The firm is able to deliver a home based on any kind of architectural plan. Going forward, Ankar aims to set up a training centre to train technicians about prefab panels technology and establish a household name in the industry.

Why Ankar Realtors •We are competitively placed in the industry since we handle the whole project from architectural planning to actual project delivery. •We are professionals with good project management skills. •We are cost effective and deliver projects in record time. Entrepreneurship Lessons •Patience is key when you want to achieve success. You can’t start a business today and expect immediate returns. •You have to be resilient because entrepreneurship is a game of hard knocks. •You should be open to accept new ideas.

“We use precast concrete panels reinforced with steel to come up with a robust wall solution. The panels are then interlocked without the use of sands or plastering for the walls. A three bedroomed house can be done in less than three months at a cost of less than Kshs 3 million,” Fully done, tiled and with fittings. He says. To underscore that the prefab panels have been revolutionizing the housing sector in Kenya, Kariuki shares that the panels reduce the construction cost by a over 30 per cent compared to conventional stones and structures.“With the panels you will also have more space for the house since the panels are four inches in thickness. A stone is usually six inches in thickness; plastering gives you an additional inch. They are also eco-friendly.” The main advantages of prefabricated houses are custom manufacturing, August 2019

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Digital Transformation Vital to Secure New Customers

ICT

TAMER FAROUK

Farouk is a Regional Senior Director – East and West Africa Applications Sales Leader at Oracle

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August 2019

owadays, customers can easily access product and service details through their devices at any time and compare competitors’ offers. Mobile devices, applications, machine learning, automation, and other technologies allow customers to get exactly what they want when they want it. Furthermore, these new digital technologies have led to a change in customer expec-

tations, creating a new kind of modern buyer – always connected and aware of what technology can enable. With the new types and levels of engagement that new technologies provide, customers generally rate organisations according to their digital customer experience. They make their impressions known publicly on various social and digital media, and they consider the

25 comments of others when making a purchasing decision. This type of consumer-to-consumer interaction is forcing companies to rethink their approach to customer interaction and customer experience. In Kenya, Longhorn Publishers experienced connectivity issues with its onsite applications that had a negative impact

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Customers expect highly targeted messages, which organisations can only deliver with a data-driven marketing strategy. Advances in machine learning, artificial intelligence (AI), and big data and analytics (including predictive analytics) will allow organisations to create new customer experiences and new sales models.

Organisations can create more demand with personalised marketing campaigns, as competition in the new digital marketplace will require speed and agility. Companies should also leverage structured and unstructured data for determining customer profiles, as well as predictive analytics to anticipate potential customer experience scenarios.

In a recent survey conducted by the International Data Corporation (IDC) among businesses in East Africa, 34% of respondents indicated that their organisation is considering marketing innovation with the aim of improving customer experience. The leading sec-

Organisations are now including customer experience roadmaps in their business strategy. Customer experience transformation can be a pre-designed process, and marketing teams can collaborate with IT, finance, and operations teams to help prevent unnecessary investments to establish realistic and aligned strategies.

Customers expect highly targeted messages, which organisations can only deliver with a data-driven marketing strategy.

Kenyan IT solutions provider Smart Applications International had to find a way to ensure the accuracy of the data on its biometrics identification and medical insurance automation application platform. This was vital to provide customers with a more reliable way of accessing their data. By transitioning into a cloud environment, it could digitally transform its processes and boost customer engagement thanks to an always available and accessible database. This resulted in its medical insurance provider clients and healthcare facilities clients being able to verify claims and process disputes 70% faster.

â&#x20AC;&#x153; â&#x20AC;?

tors for adopting technology or seeking innovation in the service of customer experience in East Africa are government and transportation.

on customer experience. As a leading provider of learning solutions on the continent, it had to resolve these challenges as quickly as possible. It migrated to a cloud environment that not only shortened the procurement cycle, but enabled the publisher to launch its ebook store, elearning platform, and apps in the market resulting in a more engaging environment for its customers.

For example, the Kenya Revenue Authority, invested in a cloud-based CX solution for improving the process of filing tax forms and stand out as another successful example of a customer experience project in terms of customer service transformation. Position data as an enabler of transformation Digital transformation initiatives are accelerating disruptions in customer experience. Agility is another key factor in the new marketing approach, which can be supported by machine learning and AI.

By keeping in mind that every department plays a vital role, companies can take a more holistic approach to customer experience. A positive customer experience has the potential to increase revenue through greater competitiveness and positive brand perception. Good brand perception, in turn, motivates employees, who feel proud to work for a well-known and successful company. August 2019

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Should You Grieve as a Leader?

LEADERSHIP

NJERI MUCHUNU

Njeri Muchunu is a Leadership Curator and Advocate of the High Court of Kenya. She has extensive experience in the legal profession spanning over 17 years. She has worked in private legal practice, as an executive in the Corporate sector as well as the Public sector.

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August 2019

rief is a natural response to death or loss. I perceive the grieving process as an opportunity to appropriately mourn a loss and then heal. The process is helped when you acknowledge grief, find support, and allow time for grief to work. We do not only experience grief on the death of someone. People can be grieved when: 1. They become separated from a loved one; 2. They lose a job, position, or income; 3. A child leaves home; 4. They have a major change in life such as getting a divorce, moving, retiring,

significant change in lifestyle; etc. I felt compelled to write this article because there are a number of Leaders experiencing grief and loss and there is not much information out there speaking to how we should deal with it as leaders. I will share my own story of how I have handled grief and loss. Remember, this is my story and I hope it will add value to you on how you can deal with grief and or loss. Many of us get angry at God during such times and many lose their faith in Him. We say to ourselves, if He is such a good God, why does He allow so much pain? If He is such a good God, why

27 would He let this happen to me/my dad, my brother, my mother – my loved one? Why did she/he have to experience so much pain only for me to lose her/him in the end? And guess what, God can take your anger and He does feel your pain, and perhaps this is a good a time as any to direct all those questions to Him instead of ignoring Him. You know as well as I do that He does exist and your ignoring His existence will not change the fact that He is there. However, this newsletter is not about that. There was a time I used to feel this way “If I admit my thoughts to someone, they’ll think I’m crazy. Am I going crazy?” And I said conclusively, No. I’m not. And I say this to you with certainty, No, you’re not! I was tired. Really tired. I was edgy and emotional and anxious. I began noticing that I felt exactly like it looked outside – gray and miserable. Numb. I questioned God….why? I sank further and further and I found myself breaking down often. I just couldn’t go through the motions anymore when I felt like I was dying inside. I was privileged to have been able to literally leave the country and be alone….i needed time to cry and cry and cry and try and understand what was happening. Yes, I cried and the more I cried, the worse it felt and I cried even more. There is a common misconception, especially among Christians, that one should always be happy. God has got this so I should be strong and courageous. Well, in my view, no one can be happy all the time – even the Godly one’s. The world is filled with a lot of sadness; there is a lot of pain in this planet and at times the only response is grief. The appropriate response is not to fake it, it is to face it. Mourn your losses, disappointments, sins, the suffering in the world and do

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not be blase about it. I spoke to God often and asked Him “Why won’t you lift me out of this pit? I’d cry. “Aren’t you a deliverer? Why do the voices of despair sound so much louder than yours?” I could not read about God’s promises and I know that when you are in the pit of it, you too I can’t read about God’s promises. It hurts too much. I went to the book of Psalms and prayed and cried to God like David did. “Why are you downcast oh my soul”? I learnt a number of lessons along the way and I want to share these lessons with you. Before I get into this, I want to remind you that grief is essential to your health: emotional, spiritual, physical and mental health. If you are never sad, you are either out of touch with reality, with your own emotions or you simply don’t love. When you love and see sad things that makes you grieve. There is no loss without pain. This will not happen. It is important to grieve the losses of life. If you don’t grieve these losses, you will get stuck emotionally at that stage and take it out on others/ or on your own body. When you swallow negative emotions, your body gets sick. David mourned all day long. You can either moan or mourn. If you are silent, your distress will only get worse. You must talk about it. Choose to allow yourself to feel the sad emotion. Not everything that is healthy feels good. Remember this, deep love cares and is strong.

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BOOK REVIEW Zero To One Notes on startups or how to build the future

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SONG REVIEW Khalid – “Talk” (Prod. by Disclosure)

You may be asking yourself right now. How do you get over it? Njeri, how did you get over it? Well, the truth is, you will never get over it, you get through it. You can’t go over, under or around grief, you MUST go through it. You must express your emotion otherwise you get stuck. Here are a few things to remember as August 2019

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you work your way through the pain: Admit it If you don’t recognize your emotional condition, because you don’t want to appear weak, unspiritual or whatever, you can’t deal with it. Allow yourself to feel the pain be it of abandonment, rejection, whatever the feeling and confess your feelings of confusion. Feelings of guilt and rejection are common symptoms when one is grieving a past life, death, sinfulness, loss etc. There is often fatigue, a loss of motivation to do anything, difficulty in concentrating, sleep disturbances (either insomnia or excessive sleep) etc. Admit them all. It may take you a few cycles of ups and downs before you get through it. What is crucial is that you are aggressively dealing with it and not just drifting with the circumstances. You need to get in touch with and accept your feelings. Your inner man God has given you the resources to be an overwhelming conqueror in even the most desperate situation. You are confused and it feels as if everyone has rejected you. Feel free to confess those feelings. I want you to think about this. Most of your unhappiness is due to the fact that you are listening to yourself instead of talking to yourself? Take those thoughts that come to you the moment you wake up in the morning; you have not originated them, but they start talking to you, they bring back the problems of yesterday, etc. Somebody is talking. Who is talking to you? Your self is talking to you. So change the narrative and start speaking positively to yourself and saying to yourself that you will get through it…. You have to take yourself in hand, you have to address yourself, preach to Startupmagazine.co.ke

August 2019

yourself, question yourself. You must say to your soul: ‘Why art thou cast down’what business have you to be disquieted? You must turn on yourself, upbraid yourself, exhort yourself, and say to yourself: ‘Hope thou in God’ -instead of muttering in this sad/low/feeling empty, unhappy way. And then you must go on to remind yourself of God, Who God is, and what God is and what God has done, and what God has pledged Himself to do – to prosper you and not to destroy you. To give you a hope and a future. I don’t believe there is another way to get through grief expect speaking to the Manufacturer Himself. The One who created you knows why you have to go

“

Choose to allow yourself to feel the sad emotion. Not everything that is healthy feels good. Remember this, deep love cares and is strong.

”

through so much pain. Afterall, we are created in His image and likeness and this then tells me that He also feels your pain. Animals, birds, fish don’t grieve, but you, as a man, grieve. The only reason you have emotion is because God is emotional. God grieves when humanity is in pain, his planet being destroyed, He grieves. I want to remind you that though you may not see it, it does not mean that it is not there. Trust the process of what is happening inside of you. Purpose to the pain There is a purpose to this pain that you are going through. God does not want you to waste a hurt. He wants us to use this pain to help others. Who can better help a person who has lost a sibling than a person who has lost one? Who

can better help someone who is going through a divorce better than a divorcee? We need to comfort others with the same comfort we receive. Your greatest ministry will come from your deepest hurt. This is because you can relate… been there, done that. The world is not impressed at how our successes but rather how we conquer adversity. It is our suffering that gives us credibility. We live in a broken world and therefore hurt will always happen. However, remember to use this experience to help others. Be a wounded healer. I need you to grieve and expose the pain you are feeling. I need you to face it and confess it. The bible tells us that “happy are those who mourn/are in pain/grieve because they shall be comforted”. God knows you are in pain and though you may not feel Him, He is right there with you. What we see is not as powerful as what we don’t see. Though it may not feel, look or seem like it, there is a lot happening inside of you that will make you a better person. God is more interested in your character than in anything else and through the pain, you have to look for Him. Finally, do not lose heart. Though your outer self is wasting away, your inner self is being renewed day by day. For this light momentary affliction is preparing you an eternal weight of glory beyond all comparison, as we look not to the things that are seen but to the things that are unseen. For the things that are seen are transient, but the things that are unseen are eternal. If you are a leader and have been feeling stuck reach out to us and we will be glad to walk with you. We are here to serve you and ensure that you understand who you are, your potential and get to the place where you can maximize it.

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August 2019

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Recruitment Traps in Fast Growing Businesses

HUMAN CAPITA;

“I think we hired wrongly”. Over the last 2 years working with fast growing businesses I lost count of how often I have heard this statement. t

HUMAN CAPITAL

Karimi is a co-founder and partner at edge which supports innovative entrepreneurs across East Africa in building high-performing teams for business growth through recruitment and designing great workplaces.

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August 2019

edge we view the recruitment process as a core business process, because the ability for any business to succeed lies heavily on having the right human capacity to drive the vision. Yet our experience is that it is often sidelined, due to lack of time, budget and capacity. A survey by Robert Half International showed 39% of hiring managers surveyed said bad hires cost them productivity. Even more shocking is that supervisors spend 17% of their time (approximately 1 day per week) in managing poorly performing employees. So how can you avoid such high costs? We have compiled a few of the traps our clients have previously fallen into, why you should evade them and how to navigate them The proactive vs passive sourcing trap “We posted on the local job sites, they shared a number of CVs, we met each of those candidates but none was aligned to what we were looking for.” Often occurs when you rely on traditional channels to get talent, e.g post a job description and wait for applications. We have found this often results in candidates who are completely misaligned to what your business needs in terms of skills, mindset and cultural fit.

To reach the right target you need to put extra effort into the sourcing process. In most emerging markets there are millions of jobseekers with varied skills levels who are looking for any kind of work. They will apply for almost all jobs posted. Social networking either through targeted headhunting or referrals and working closely with a recruiter who fully understands your business needs is recommended to navigate this trap. It may cost a little bit more money, but it will earn you ROI by hiring more productive talent and avoiding costs of extensive training and recruiting. Still in line with sourcing we hear “There is no talent here”. Which prompts me to ask: “Where have you been looking? There is plenty of talent. The important question is if you are positioning your company in the places where this talent would be looking for you! Also are you designing roles that are as agile as your business is? (In more traditional structured organizations JDs fixed to one person might work perfectly. However in fast changing environments there is need to take a different approach, begin with defining roles that are needed to drive your business and then assigning those to the best fit talent

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at the moment, allowing flexibility to add more roles as business grows and reassign roles when needed. An individual could have more than one roles making them feel more connected to contributing to business in a variety of ways). The cultural fit trap “Soandso is a great person. But she just doesn’t fit here. She is used to a different system. We feel she would fit in a more structured, hierarchical environment. We are not like that.” When it comes to culture the person could be greatly skilled, however the pain is on a different level: How they interact with the team, challenges blending into unstructured environments, showing behaviors contradicting your company values. You need people who will be your brand ambassadors. They will plug and play to the behaviors of your organization as culture is the glue that keeps your organization together. Design your selection process to include cultural fit assessments, get referees to talk about the candidate’s behaviors relating to the culture of your organization. We recommend that you hire for culture first, this does not mean you choose people who are less skilled just because they fit your culture as sometimes misunderstood. It simply means that you put culture fit as a minimum must-have requirement in the selection process. “If you work with people who we have no respect for, or we don’t like them it creates a lot of obstacles in the workplace, including increased turnover“ says Alon Zouaretz, founder of Talsona, a job placement platform that places emphasis on culture fit.

Skipping onboarding due to limited resources yet expecting performance from new hires trap “We actually don’t have a standard onboarding process. Time is limited and yet so much to do, so we find ourselves sidelining onboarding. We don’t have anyone assigned to do it. But actually we think that the right people can figure things out themselves!’’ In a study by analyst firm Aberdeen Group 86% of respondents said that a new hire’s decision to stay with a company long-term is made within the first six months of employment. That requires a great first impression! After talent planning, onboarding is probably the second key aspect of the recruitment process that is often overlooked. A proper onboarding process spread out with engagements before Day 1 all through to about a year in rapidly engages and connects your new hires to the life of the organization. Investing time and allocating a responsible to ensure the process is implemented to set up your new hires for success and ensure higher opportunities for retention. Having a high turnover is expensive hence better to support your new hires in setting themselves up for success.

son with other candidates you are setting yourself up for tough emotional situations (as you will have to let go someone who may have become a friend or is still within your close network) and you are jeopardizing your business goals (by creating a wrong person on the wrong job or right person on the wrong job scenario). This can be overcome by similar approaches to the passive trap vs proactive. In addition it is key to take time as you are working on modelling your business and creating your strategies to also plan ahead on talent. Learn more about the talent trends, expectations and challenges in your market. This will be very helpful in deciding overall how you approach recruitment from planning to on boarding. What traps have you fallen into that cost you time and money? Happy to hear your experience. At edge we can help you navigate these traps and many more saving you time and effort in hiring. Talk to us today to learn more!

Friends trust/market unfamiliarity trap. I always ask, “How did you get the current team members?” The most common response has been “Well most have been from friends and our network. They were referred to us and seemed like good people, so we hired them!” This could be mistaken for social recruiting. It is not! When you like someone from a single conversation and offer them a job the next day, without much background check on their experience, achievements, capabilities or compariAugust 2019

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At the back

Motors

Five Big SUV’s That Mean Business Words MHH International-A Prestige Car Importer We are fully aware of the continuing popularity of the Sport Utility Vehicle (SUV) which shows no sign of abating. They are popular both with families on the school run and with outdoors types who like to venture out into the wild blue yonder. Not all SUV’s are the same though; some are two-wheel drive only and can be categorised as soft-roaders rather than off-roaders. If the intention is to drive on rougher terrain or on challenging road conditions then that is when four-wheel drive comes into its own. Buyers can always opt for hard-core pickup trucks and the like but most will prefer the perhaps more comfortable and luxurious ride found in prestige cars today. Off-road Specialists The old days of locking differentials manually and the like are long gone. 21st Century four-wheel drive SUV’s can cope with nature’s bad temper and tough terrain automatically. Some, inevitably, are better than others when the going does gets tough. So here’s our selection of five rugged motors that mean business in bad conditions.

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August 2019

Jeep Wrangler The name Jeep is synonymous with driving off the beaten tracks. The brand offer various types of two and four-wheel drive vehicles but when heavy duty is called for then it is to the Wrangler that buyers turn. Recently updated and with superb off-road ability, the Wrangler is the mo-

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tor to cope with terrain that would have other contenders running for the safety of solid highways. These days the vehicle is available in two or four-door guise with many of the dashboard extras drivers have come to expect. That off-thebeaten-track ruggedness comes with a catch though. On the road the Wrangler has rather vague steering thanks to the combination of the four-wheel drive system and heavy duty tyres but for mixed conditions this legendary tough 4×4 is hard to beat. Volvo XC90 Volvo continues to deserve the brand’s reputation for making premium, sensible, practical cars and it came as no surprise when it entered the SUV market with the first Volvo XC90. This quickly became one of the most popular big cars in the UK and remained on sale for a remarkable 12 years. That meant that subsequent XC90 models had big boots to fill. Fortunately, the latest incarnation is little short of brilliant. It delivers the passenger comfort and tranquillity on the inside that Volvo is known for. The XC90 is fully equipped with all the latest technology, including a large infotainment screen that’s as intuitive to use as any tablet. It is currently the safest car money can buy. Diesel engines are perhaps the best choice but petrol and hybrid variants are available. This car is a winner. Range Rover Huge inside and out the Range Rover always has exemplified prestige motoring. It just oozes real luxury, albeit at a really luxurious price. More to the point, with four-wheel drive, like an SAS soldier in a sharp city suit, this vehicle is hard to outclass on rough terrain and has virtually no peers. Supremely comfortable on the road it’s good to know that this big SUV also has the capability to take to the hills. Land Rover’s Terrain Response 2 system allows the driver to select what type of terrain the car is on and it tunes all the various systems accordingly. Better still this magnificent car can set itself up automatically. Remarkable motoring.

Range Rover in more remote parts of the world for years. It has an almost legendary go-anywhere reputation. With an off-road heritage spanning more than 65 years, the Toyota Land Cruiser retains its ability to combine outstanding quality, durability and reliability with amazing off-road performance and even greater levels of luxury, prestige and on-road comfort than on any previous models. The favourite of film crews for TV car shows, on tough terrain it is a hugely impressive vehicle, helped by sophisticated and genuinely useful off-road systems, allowing it to tackle seemingly impassable ground. In some ways, it is getting a little dated but that hasn’t dampened buyers’ opinions. The 4×4 legend goes on. Mitsubishi Shogun This big motor is one of the last of its

kind. An off-roader that has served with distinction many motorists and country dwellers who needed a true four-wheel drive automotive leviathan. It is big yet surprisingly easy to park. The Mitsubishi Shogun eschews trends and shrugs off swooping modern design; remaining at heart a workhorse. It has all the aerodynamics of 1½ house bricks with a no nonsense approach to what a 4×4 should be. This means a real centre differential lock and a low range transfer box for extreme conditions. It might not be the last word in refinement but it’s ideal for towing caravans and horseboxes literally anywhere in the world. There you have it: Five of the best true off-road vehicles money can buy. If there are any such vehicles that appeal that are not on this list then why not get in touch with MHH International?

Toyota Land Cruiser

Toyota Land Cruiser This is a vehicle that has been a mainstay August 2019

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Travel & Leisure

The Mysterious Kyamwilu Hill by Oroni Tendera

“Travelling leaves you speechless, then turns you into a storyteller.” Ibn Battuta

The Mitaboni-bound matatu gets jerked forward abruptly, accelerating uphill. “What is the matter?”I yell at the driver. He chuckles, perhaps to ridicule my tension, then lowers the volume of the stereo that has been replaying Alex Kasau’s song ‘Wana Kisinga’. Startupmagazine.co.ke

August 2019

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“We are currently climbing the mysterious Kyamwilu hill,” he says as he drives to the edge of the road. He stops the car. I alight. Another mystery embraces me. A Subaru Crosstrek at the other side of the road, windows rolled down, is moving uphill unmanned. A group of young men and women chanting “Wamlambez!….wamnyonyez!” are following the car. It suddenly stops after moving approximately 50 metres uphill. Men holding 1-litre plastic bottles are scattered at the sides of the road. They wave at me. I wave back. Unlike Nairobi, Machakos steams with warm humanity. Genuine smiles and well-meaning conversations are common here. I cross the road to meet my prospective new friends. “Are you fine?” I greet them in Kikamba. They all laugh at my accent before responding in the affirmative. One of the men, gently grabs my right hand and leads me to the centre of the road. He unseals the water bottle on his left hand and pours its content on the road. To my amazement, water flows uphill. “Is witchcraft real?” I exclaim peering at my new friend. He meets my gaze with a neutral expression. “By the way I am Munyao John and welcome to Kyamwilu hill. The only place on earth where the force of gravity is defied,” he says. An oncoming lorry interrupts our conversation. We rush back to the side of the road. A long silence ensues. I take a keen look of my environment. Undulating blue hills dot our background. No hotel. No loud business people selling artifacts and curios. The place looks sleepy but serene. “Why is this hill called Kyamwilu?” I break the silence. “Not long ago,’’ says Munyao, “A set of twin brothers, Kyalo and Mwilu did the most unforgivable abomination in Kamba tradition. They married one woman. She was called Mwende. She conceived a boy child called Kamau before passing on. Mwende was buried somewhere on this hill. However, it was not made clear who fathered Kamau between the twins. For that reason Kyalo and Mwilu were

Kyamwilu Hills where water goes uphill defying gravity constantly engaging in fights over Kamau. When the two brothers later died, Mwilu was buried at the upper side of the hill while Kyalo at the lower part. Death did not stop their scuffle. Right now they are still fighting.” “How?” I butt in. “Mwilu was the eldest twin. Stronger than Kyalo. He is constantly overpowering his brother. Due to Mwilu’s unusual strength, water moves uphill towards his grave. I can take you there,” says Munyao. I nod, following him. At the edge of the hill, stands alone dwarf green guava tree amidst drying vegetation. “Beneath that guava tree, lies the late but great Mwilu. The tree germinated a few days after he was buried. It has withstood the test of time,” says Munyao. “Where is Kamau’s grave?” I ask. “Kamau is alive. He sold their ancestral land and relocated to a secret place in

Lukenya.” “So the two dead old men are ever fighting over a living old man?” “There is life after death. You must be a writer. Right? Write about that,” says Munyao. “One day I will write about you, Kyalo, Mwilu and I,” I say as we walk back to the roadside. “That hill in front of us is full of mysteries too. Can we go there for a hike?” suggests Munyao. “No, thank you. I want to go home and write about Kyamwilu and us,” I say tipping John. He mumbles innumerable “thank yous.” A matatu stops besides us to drop a passenger. I bid Munyao farewell and promise to revisit Kyamwilu.. “May you meet Kamau in Machakos town,” he screams as I board the matatu. August 2019

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Coffee Break

Rich Dad Poor Dad

Book Review

What the rich teach their kids about money that the poor and middle class don’t Author: Robert T. Kiyosaki Reviewer: Oroni Tendera In Rich Dad Poor Dad, the #1 Personal Finance book of all time, Robert Kiyosaki shares the story of his two dad: his real father, whom he calls his ?poor dad,’ and the father of his best friend, the man who became his mentor and his ?rich dad.’ One man was well educated and an employee all his life, the other’s education was ?street smarts” over traditional classroom education and he took the path of entrepreneurship?a road that led him to become one of the wealthiest men in Hawaii. Robert’s poor dad struggled financially all his life, and these two dads?these

very different points of view of money, investing, and employment?shaped Robert’s thinking about money. Robert has challenged and changed the way tens of millions of people, around the world, think about money and investing and he has become a global advocate for financial education and the path to financial freedom. Rich Dad Poor Dad (and the Rich Dad series it spawned) has sold over 36 million copies in English and translated editions around the world.

Blog Review Founder: Susan Gunelius Reviewer: Adisa Hudson

Link https://www.womenonbusiness.com About the Blog

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August 2019

Established in 2007, Women on Business, is an award-winning online destination for the news and information women need to be successful in the business

world from an international team of contributors. Business women can be a powerful network online. The goal of Women on Business is to see that power grow and to broaden the online discussion between today’s male and female business thought leaders.

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Godrej Chief Executive Officer Mr. Rohit Vengurlekar (left) with Pauline Kamau (right) Personal Care Category Manager Godrej review one of the new Valon Body Lotion following its launch into the market.

Savannah Cement Staff led by Managing Director Ronald Ndegwa (third right) cutting the firms 7th anniversary celebration cake

itel Debuts its Latest Selfie Series Smartphone S15 with Google Gallery Go

August 2019

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Song Review

Megatron Nicki Minaj Review by Mr.T at Reggae Vibes

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August 2019

“Megatron”, released on June 21, 2019 along with its accompanying music video, is Nicki Minaj’s first solo single in 2019, following some guest appearances in other artists’ songs. “Megatron”, contains a sample of the Danny Browne produced “Filthy Riddim” from 1998, probably best known from Mr. Vegas’ huge international breakthrough hit, the highly infectious “Heads High”. Since she entered the music business in 2007 with here mixtape “Playtime is Over”, the Trinidad and Tobago-born rapper, singer, songwriter, actress, and model has become one of the world’s best-selling music artists. Growing up in Queens

NY, she was heavily influenced by Jamaican music and culture. Hitting dancehall spots like the Q Club, it’s not really surprising that she collaborated with Jamaican artists like Beenie Man, Mavado, Vybz Kartel and Gyptian.

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August 2019

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Mysterious Kyamwilu Hill

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