The African Business Fortune volume 3

VOL 3 - JAN - FEB 2016

M A G A Z I N E EMPOWERING AFRICAN BUSINESSES

Ksh 350, Tsh 7,000 Ush 12,000 Rw franc 2,400 SA Rand 45

Sacco with a Ksh 10B Plan Uchumi admits manipulation in its books of accounts

David Mategwa, Kenya Police Sacco National Chairman Sectors to watch in 2016

www.theafricanbusinessfortune.com

Kenyan market excites Africa’s ‘Mr. Cashless’

Red Carpet Meetings? Check!

We boast of newly refurbished ultra-modern conference and meetings facilities available for ĂŽUPV DQG corporate groups wishing to deliberate for their performance and future in a serene environment. These facilities are equipped with exquisite furniture, Audio-visual equipment, air conditioning and adequate stationery.

SPORTS.(1<$ more than just sports

The conference rooms include: Â&#x2021; 3ULYDWH PHHWLQJ URRPV Â&#x2021; $QQXDO *HQHUDO 0HHWLQJ $*0 KDOOV Â&#x2021; :RUNVKRS YHQXH Â&#x2021; 9,3 ORXQJHV

5HVHUYDWLRQV DQG 6DOHV SOHDVH FDOO 0RL ,QWÂŞO 6SRUWV &RPSOH[ .DVDUDQL 7HO )D[ 1\D\R 1DWLRQDO 6WDGLXP 7HO

Amazingly big indoor arena. $ VWDWH RI WKH DUW ,QGRRU $UHQD DW .DVDUDQL ZLWK D FDSDFLW\ RI SD[ D YHU\ LGHDO YHQXH IRU $*06 FRUSRUDWH VSRUWLQJ DQG WHDP EXLOGLQJ DFWLYLWLHV 7KH ,QGRRU $UHQD DOVR KDV SUHVLGHQWLDO VXLWHV VQDFN bar, and a restaurant, a typical setting for exclusive corporate use for business presentations, product launches and other business meetings in idyllic and peaceful surroundings.

SPORTS.(1<$ more than just sports

Reservations Reservations and and Sales Sales please please call: call: Moi Moi Intâ&#x20AC;&#x2122;l Intâ&#x20AC;&#x2122;l Sports Sports Complex, Complex, Kasarani Kasarani 7HO 7HO )D[ Nyayo )D[ Nyayo National National Stadium 7HO Stadium 7HO

A SIGNATURE DEVELOPMENT IN RUAKA Swimming Pool 路 Club House 路 Elevated Playground Day Care Centre 路 Commercial Centre

1, 2 & 3 Bedroom Apartments For more information and bookings, please contact: Tel: +254 (0)20 440 0420, +254 714 830 744 Email: sales@cytonn.com Web: www.cytonn.com

THE AFRICAN BUSINESS FORTUNE - ENTREPRENEURSHIP

EDITORIAL

EDITORIAL

Could 2016 be a decent year for African Economies?

A

frican economies had a pretty rough 2015 following sluggish growth triggered by declining currency against world’s major currencies and as the New Year beckons a lot of hope and optimism is the air.

Oil prices and other commodities tanked, while terrorism and conflict concerns hurt key sectors like tourism while drought and floods threatened disrupted lives all across the continent.

As a result, sub-Saharan Africa saw its economic growth fall from 4.6percent in 2014 to 3.4percent last year. Now the World Bank in a new flagship report says this pain is not nearly over, with growth expected to recover only to 4.2percent this year, hobbling the drive to cut poverty rates across the region.

In its Global Economic Prospects, Spillovers amid Weak Growth report, the development lender forecasts a perfect storm as a slowdown in the largest emerging markets—the BRICS— meets with lower commodity prices, decreasing growth in international trade and financial market volatilities.

The report suggested of a disappointing growth again in the largest emerging markets, if combined with new financial stress, could sharply reduce global growth in 2016.

The report further says that concurrent slowing of four of the largest emerging markets like Brazil, Russia, China and South Africa that pose the risk of spillover effects for the rest of the world economy.

WB also points out on the ripple effects that we should expect to be the greatest from China’s continuing slowdown which roiled markets last year and has started off the year on the same note.

The bank forecasts that global growth will this year only recover to 2.9percent after falling short of expectations in 2015 to only come in 2.4percent.

With Africa increasingly integrated to world markets, we pick 10 highlights of the report linked to the continent’s prospects this year.

As Africa’s largest trading partner, Beijing was last year at the Forum on China-Africa Cooperation summit at pains to reassure the continent that it’s domestic rebalancing away towards consumption and servicesled economy did not mean it was abandoning a long-term partner. But for several African exporters, who have ridden on demand from China for their oil and metals, the resulting plunge in commodity prices was a much more telling reality as revenues fell and market uncertainty hit their financing plans.

The World Bank says the effects of the Chinese slowdown could be sizeable and will likely be contributed to the ongoing slowdown in sub-Saharan Africa.

The report recommends that the region would be less vulnerable to global winds if it builds investor confidence, including through policy reforms in tax and governance, strengthens its industrialization drive and increases intra-regional trade.

Tax revenues remain low, especially when resources are factored out, leaving a lot of space for the continent to diversify its purse and better control outcomes.

Editor Steve Umidha s.umidha@theafricanbusinessfortune.com info@theafricanbusinessfortune.com

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 5

CONTENTS COVER STORY

COVER STORY

the team Finance &Editor Admin Manager Managing Michael Wandey Steve Remie Managing Editor Admin & Finance Steve Umidha Otieno Wasonga Staff Writers Writers BrianMartins Tirok Paul Monicah Muema Emmanuel Aloo Contributors Contributors O. Benard Gladys Oduor Dan Mganda Raymond Mwangi Jacob Oginga Vincent Chege Maurice Momanyi Amos Njau Design & Layout Ann Wanjiru Walter Onditi Photography Marketing Executives AyubNyakundi Muiyoro Abel Abigael Shon DesignOkoth & Layout Priscah Walter Onditi Anthony Wesonga Business Development Paul Arithiand Distribution Circulation Abel Nyakundi The African Business Fortune Abigael Shon Media Circulation and Distribution The African Business Fortune Publishers The African Business Fortune Publishers Southern 3rd Floor, The AfricanHouse Business Fortune Muranga Road, Kenya Media P.O Box 2957 00200 Southern House- 3rd Floor, Nairobi Road, Kenya Muranga P.O Box 2957 - 00200 Nairobi Tel:0726 0726879 879488, 488, 0723 Tel: 0723 052052 000, 000, 0771 832 771 0771 832 771 Email: info@theafricanbusiEmail: businessfortunemaganessfortune.com zine@zoho.com

Copyright 2016 The African Copyright 2015 The African Business Business Fortune is a Monthly Fortune Media is a Monthly publication publication.

All reserved.

Africa Media Ltd. Allright right reserved.

No part of this publication may be repro-

duced No part of this publication may or reproduced transmitted in anyor means, electronic be transmitted or mechanical, including photocopy, inorany means, electronic or any storage and retrival systems, mechanical, including photowithout prior written permission from copy, or any storage and retrival the publishers.

African Business Fortune is entirely systems, without prior written independent from of all commercial interests permission in all sectors and regions of its coverage. the publishers.

Unsolicited manuscripts will not be accepted for publication.

COVER STORY

24. The young King of Out door advertising TRADE & FINANCE

29. New car sales hit record high on growing demand for Pg - 28 . Business ‘troubleshooter’ with a Midas Touch REGIONALS luxury cars Pg - 18 . Farmers in Rwanda embrace Solomon Angutsa Atsiaya, CEO Kenya Police Sacco

digital payment

EDITORIAL Pg - 5 . Business ‘troubleshooter’ with a Midas Touch

ENTREPRENEURS

Pg - 20 . Egypt’s new bank rules to boost business growth

31. Doctor with a Sh2 billion plan

ICT- 7 . Kenyan market excites Africa’s ‘Mr. Cashless’ Pg SPECIAL REPORT 8. CA sets June 2018 deadline for broadcasters to have 60 percent local content programming

Pg - 48 . Meet Winnie Kamuya, the woman entrepreneur beENERGY hind Personal Assistants (PA’s) impetus

Pg - 14 . Key sectors to watch in 2016

37.

Azuri Technologies’ quest to CORPORATES promote clean energy Pg - 13 . Uchumi admits manipulation in its books of accounts Pg - 26 . KTDA targets Sh5.5Bn loan facility with green energy schemes ICT

INDUSTRY WATCH

Are chat apps killing sms?

Pg - 42 . Sky wars hot up as Fastjet makes maiden flight on Nairobi Tanzania route CORPRATES

Pg - 43 . Car dealers brace for sluggish growth

Crown Paints targets to grow market share by 70 pc in 2015

The African Business Fortune is Pg - 52 . Equitel battles Safaricom, Airtel for new subscribers entirely independent of all commercial interests in all sectors and regions of its coverage.

Unsolicited manuscripts will not be for publication.

6 -accepted THE AFRICAN BUSINESS FORTUNE MAGAZINE AUG-OCT 2015

6 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

THE AFRICAN BUSINESS FORTUNE - ENTREPRENEURSHIP

Mitchelle Elegbe

Kenyan market excites Africa’s ‘Mr. Cashless’

By Steve Umidha & Brian Tirok

M

itchell Elegbe honed his entrepreneurial skills at an early age and all signs pointed towards him making it big in the future. He cut his teeth in business way back during his schooling days while pursuing an electrical engineering course at the University of Benin.

His entrepreneurship abilities first came to limelight as a student when he loaned money from a friend to begin a cassette recording business – where he’d buy high quality audio tapes and then go back to record on them at a recording studio and sell in school. This experience he concedes was an eye opener – one that would awaken other hidden concepts in him.

“It was one of my nascent ideas towards entrepreneurship voyage and with that

“This business is not a one-man show, it’s a collective effort from every individual who work with us,” he says.

stride I realized that the many ideas in me would also be actualized,” opens up Mitchell Elegbe who is the current Managing Director and Chief Executive Officer of Interswitch during a visit at his Nairobi office, Kenya, who goes on to explain that ideas are time bound.

“If I was to start something a fresh, Interswitch would be too small of an idea today. This company is not just a place I go to overnight; it is a series of idea which developed over time.

He is the brain behind the world class integrated payment and transaction processing company, INTERSWITCH, headquartered in Nigeria – but for him the company remains a flagship enterprise through which all its employees are entitled to own shares in the firm, and in which many have come to appreciate his entrepreneurial spirit and the uniqueness the corporation operates under.

Interswitch is an Africa-focused integrated digital payments and commerce company that facilitates the electronic circulation of money as well as the exchange of value between individuals and organizations on a timely and consistent basis, is the emblem that first grins a reader’s face when they log-into the company’s website.

But how did it all start? Not so much is known of how the company started, at least in the local setting.

The firm began operations in 2002 as a transaction switching and electronic payments processing company that builds and manages payment infrastructure as well as deliver innovative payment products and transactional services throughout the African continent.

Him together with a group of friends applied for scheme equity of about 200million (Naira) from the Central Bank of Nigeria and their personal

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

7

AFRICAN BUSINESS FORTUNE - ENTREPRENEURSHIP savings to begin operations.

Prior to that, Elegbe who was motivated to practically solve problems, rather than just make money and having a can do attitude are some of the virtues he says helped him set up Interswitch as a fledgling company, barely 5 years after NYSC who reveals he started his career with CSA (Computer Systems Associates in Lagos following his successful graduation from NYS camp, as part of a team that implemented software solutions that now sees Nigerian banks connected to the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

Months later, he joined TELNET in the late nineties and was appointed to head Business Development, Corporate Sales, Solution selling, Customer and Supplier Relationship Management as well as the conceptualization and implementation of new products – a position he says exposed him to begin innovative ways to grow his department who would a year later head the company’s Group Marketing and

Business Solutions.

It was at Telnet that he says; the idea of building a nationwide switching company of a world class was conceived. Having with Accenture and nine leading banks in Nigeria, Mitchell managed the project from design, providing the concept to the eventual set up of the company.

According to Mitchell, who believes in service-profit result, Interswitch was the idea at the time that made sense.

“10 years ago, I felt that the way transactions were being done, could be made better and also didn’t understand why people had to go to the bank to get money while they could do so conveniently without visiting the bank hall. You work so hard to get money, save it and when you want it you queue for it –I came to conclusion that this can be changed,” he says.

“My idea at the beginning of this journey was to come up with a solution that would ease most of the transactional hustles most people go through, Interswitch to a larger extent has helped resolve that problem, but we are not about to stop, we are innovating

everyday and plans to be a head of our competitors, we believe we are the best in this business,” says a man who generates his motivation from reading books.

Today, the company is valued at un-disclosed billions of shillings having started with just 200Million Naira in 2002 and 8 years later (in 2013) the company is estimated to have grown by 26billion naira and now has operations and office branches in several African countries, what’s more Elegbe says, him together with his team are not stopping just yet.

Back home the company made headline news last month after acquiring a majority stake in Paynet Kenya which owns the Pesa Point network of ATMs across the country, with the acquisition meaning that Paynet’s shareholders will now be allocated some seats on the Interswitch Group Board under the agreement while Bernard Mathewman, current CEO of Paynet will stay on as CEO in charge of the East African region.

The deal is expected to widen Interswitch footprint in Kenya and provide it with 70 financial institutions and over 2,000 com-

Divisional-CEO-Financial-Inclusions-Services-Interswitch-Mike-Ogbalu-CMO-Interswitch-Cherry-Eromosele-and-GMD-Interswitch-MitchellElegbe-copy

8 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

AFRICAN BUSINESS FORTUNE - ENTREPRENEURSHIP

Divisional-CEO-Financial-Inclusions-Services-Interswitch-Mike-Ogbalu-CMO-Interswitch-Cherry-Eromosele-and-GMD-Interswitch-Mitchell-Elegbe

panies that Paynet was serving before the acquisition.

The deal is however subject to regulatory approvals and will see Kenyan firm change its brand to that of the Nigerian headquartered company.

-The company works with financial service providers, merchants, billers, and other organizations that aim to increase their efficiency and outreach

through its network of human service interfaces for secure financial transactions nationwide.

The company said at the time that it will now target the public cashless payment solutions that the Kenyan government intends to rollout as a possible source of revenue growth for the company.

â&#x20AC;&#x153;More is yet to come, our consumers should expect more from us,â&#x20AC;? he concludes and urges young budding entrepreneurs to first be sensible to their driving force while starting out in life, for a man whose belief in life and entrepreneurship is success is not an overtime experience but it involves hard work and sweat and complete determination.

About Interswitch -Interswitch Financial Inclusion Services Limited is positioned to serve as the interconnect point and infrastructure for integrating and delivering electronic payment services to the unbanked, under-banked and banked.

Mitchell-Elegbe-and-Bernard-Matthewman-CEOs-of-Interswitch-and-Paynet-grouprespectively

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 9

AFRICAN BUSINESS FORTUNE - TELECOMMUNICATION

NETFLIX has ‘zero’ impact on our business, say pay TV firms

By Brian Tirok

T

he launch of video-streaming service Netflix took many by surprise last week with its expansion into 130 countries including Africa, but some pay TV service like DStv and StarTimes have said the arrival of a rival moviestreaming firm on the continent will have ‘zero’ impact on their revenues – as most of them remain highly competitive in terms of local content on domestic grounds.

MultiChoice which owns both DStv and GOtv said last week that it welcomes the competition in the pay television and

entertainment industry, adding that the competition is good for consumers as it gives them more options and ability to compare services.

Startimes Public Relations manager Alex Mwaura said in the interview with People Daily that increased competition, the battle between the players will be in the acquisition of exclusive content, both local and international and the biggest winners will be the consumers as they will have premium content as well as local content developers who will progressively have a ready market for their works.

10 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

“We do not foresee any significant impact on our business, as a brand, we are confident that the content available on our platform is diverse, informative and entertaining to cater for Kenyan households, coupled with the affordability of our offering will continue to give us an edge as the preferred pay television provider in the market,” he says.

He further says the ripple effects of the launch means consumers with means may enroll to more than one pay television provider in their quest to complement their entertainment, while the battle between the players will be in the acquisition of exclusive content, both local and international.

DStv has been on the spotlight recently for overpricing its packages especially in the local market compared with other

AFRICAN BUSINESS FORTUNE - TELECOMMUNICATION Equitel battles Safaricom, Airtel for new subscribers

By Dan Mganda

S

afaricom and Airtel lost 446,000 mobile subscribers to Orange Kenya and Equitel even as latest statistics showed they added new customers to their network between July and September 2015.

The battle has shifted to new subscribers, according to industry regulator Communications Authority of Kenya (CA), released in December.

Safaricom lost 425,000 subscribers to 25.1 million over the quarter, while Airtel lost 21,600 from 7.2 million users.

Consequently Safaricom shed 1.7 percent of its overall market share from 67 percent as Airtel lost o.3 percent to claim 19.1 percent in overall subscription numbers.

Equitel gained a huge number of subscribers to grow its base by 24.3 percent in three months, recording 1,085,869 in total subscriptions. markets like South Africa where prices are cheaper. In October last year the company adjusted upwards prices of its packages much to the disgust of Kenyan consumers.

Premium package for instance was increased from the previous Sh8, 200 to Sh 9,400 and Compact Plus package from Sh5, 550 to Sh6, 400 while Compact package was increased

by Sh 500 from the previous Sh3, 250 to Sh 3,750. Figures also show that DStv charge Sh 5,350 for its premium package in South Africa, a difference of Sh4, 050.

Netflix’s entry had been widely expected to shake- up the otherwise small yet on-demand video service market and was poised to open a whole new basket of international content to Kenyans. But that is doubtful to happen, according to some industry players.

John Ogilla, an independent industry expert says Netflix will be muscled out of some content agreements by market players with deeper pockets or head-start in license negotiations.

Further challenges like general accessibility may also play a critical role in its up take, especially among households that are not connected with internet and with low broadband penetration rate.

Ogilla predicts ZUKU and Safaricom’s BIGbox will the biggest threat to Netflix with the latter’s set top box connected with Wi-Fi hotspot with 3G/4G Internet browsing and is retailing at Sh4, 999.

Netflix on the other hand provides content to smart TVs, smartphones, tablets, PCs, PlayStations and other gadgets like Xbox with an active internet connection and accepts payments only through debit and credit cards and with time, he expects it to tie up with telecom firms and payment wallets to increase its target market.

Orange Kenya which is undergoing restructuring process after being sold to a private equity investor added 400,000 to its fold to record a total subscriber base of 4.4 million.

Orange and Equitel now control 11.9 percent and 2.9 percent of overall market share respectively.

The quarterly report however shows during the period under review, net mobile subscriptions grew by 32.9 percent to 1.7 million highlighting operators were battling for new subscribers.

Compared to last year new subscription numbers grew by 300-fold.

This saw Safaricom gain 3.8 percent new subscriptions as Airtel added 400,000 new subscribers.

CA showed the mobile market in the country maintained an upward trend to recording an increase of 4.7 percent in the number of mobile subscriptions to stand at 37.8 million up from 36.1 million subscriptions posted last quarter.

“Subsequently, mobile penetration grew from 83.9 percent recorded last quarter to 88.1 percent during the period under review,” said CA. Pre-paid subscriptions continued to dominate the mobile telephony sector with the quarter in review recording 36.8 million to account for 97.3 percent of the total subscriptions.

Local mobile traffic stood at 10.8 billion minutes up from 9.2 billion minutes posted during the previous quarter, representing growth of 18.2 percent.

“This was as a result of special offers and promotions carried out by the operators during the quarter under review,” said CA in its fourth quarter report released on 23rd December last year.

On net traffic contributed 88.9 percent of the total traffic to post 9.6 billion up from 7.9 billion minutes posted during the previous quarter, according to the report.

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 11

CONSULT A COLOUR EXPERT. YOURSELF. The Crown Colour App is a first of its kind in Kenya.

Navigate through more than 1000 colours Search for any colour by name or code Browse home interior images and retrieve colour details Take a picture with your phone and identify colours... the possibilities are endless

Download the CROWN COLOUR APP today from Play Store.

Snap. Tap. Bam... now youâ&#x20AC;&#x2122;re a colour expert.

www.crownpaints.co.ke

THE AFRICAN BUSINESS FORTUNE - RETAIL

Uchumi admits manipulation in its books of accounts

By Steve Umidha

T

he board of Uchumi Supermarkets has confirmed manipulation in the financial statements saying the company’s shareholders have been receiving falsified financial reporting in the last 3 years.

“I have never had the opportunity to say this but today I can confirm that in the last 2 to 3 years, you have been receiving fraudulent financial reporting including cash flow, balance sheet and other financial details at our AGMs and as flawed procurement processes,” said Polycarp Igathe – a board member and also chairs audit committee at Uchumi.

Igathe was appointed into the board in March last year to fill vacancies in the retailer’s board and was among four other directors that were confirmed in January at the AGM meeting in Nairobi.

His admission comes even as the company and the public awaits full forensic audit report from KPMG expected to reveal how proceeds raised from the Rights Issue were spent.

The revelation that the listed supermarket chain ‘cooked’ its books of

Julius Kipngetich- Uchumi CEO

accounts to the tune of Sh1.04billion first came to limelight last year in an expose’ that followed the sacking of its former senior managers and the immediate ex-chief executive Jonathan Ciano.

The book-cooking at Uchumi were first leaked through a research by Londonbased Exotix in June who charged that the company concealed losses in millions it made over the last two to three years.

Uchumi reported a false profit of Sh357million in 2013 against Sh123million loss the retail firm should have reported and a Sh336million loss in 2014 compared to the Sh 384million profit it declared.

Uchumi boss Julius Kipng’etich however, said a clear picture of the extent of accounting fraud orchestrated by former executives would be revealed once a forensic audit is complete, adding that the company has submitted all its report findings to Capital Markets Authority (CMA) and is waiting for a decision from the regulator.

“We believe there was criminal part in the process of the rights issue and pro-

ceeds were all wired to finance Tanzania and Uganda subsidiaries which had never made profits and were consuming 25 percent of the operation costs. Accounts have now been corrected and books of Uchumi are now sitting correctly,” said Kipng’etich.

He was responding to questions from unhappy shareholders who demanded for the prosecution of the company’s former bosses over the Sh3.4billion loss the retailer had accumulated prior to the revelations which saw the axing of Ciano and 5 procurement officers and their head.

The shareholders also questioned the intent by the Board to enter Nigeria and South Africa markets saying the move was pointless and that it should instead consolidate the Kenyan market as its top priority in the recovery strategy.

“We will never open new markets without your approval and property visibility study,” he sought to defend himself.

Meanwhile shareholders approved a plan to scout for a financial investor to inject up to Sh5billion into the company to help it in the recovery process which is subject to regulatory approval. Also approved was the move to increase its nominal share capital to Sh10billion from Sh5billion.

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 - 13

THE AFRICAN BUSINESS FORTUNE - FINANCE

SPECIAL REPORT

Key sectors to watch in 2016

By Steve Umidha & Brian Tirok

W

luxury cars pushed new and used motor-vehicle registrations to102,606 newly registered motor vehicles in 2014 alone, according to figures from Kenya National Bureau of Statistics – which was an increase of 9 percent from 94, 017 units the year earlier, with both totals including trailers.

hat’s the investment landscape going to look like in 2016?

Judging by the recent market trends, five key sectors including, Information Technology (IT), Tourism, Auto industry, Real Estate, Energy and transportation as well as banking sectors are likely to carry momentum into the New Year, 2016.

During that period the number of commercial panel vans and pickups shot up by 28 percent from 9,819 units registered in 2013 to 12, 568 units last year – while sales of new heavy trucks rose 11.6 percent from 9, 570 units in 2013 to 10,618 in 2014.

The year most business buffs and economic experts are already predicting would be ‘a prodigious one,’ following a rather sluggish 2015 in terms of growth that fell below most markets’ expectations.

Firstly, the stabling shilling as well as the decision by commercial banks (following a directive from the Central Bank of KenyaCBK) to lower lending rates have been poised as some of the key factors that will improve ease of doing business in the country.

Luxury car segment for instance (made up of Jaguar Land Rover and high-performance models), according to Kenya Motor Industry Association (KMI) will be a major catalyst for the surge in new vehicle registration in the auto industry, which recorded the highest jump in sales at 58.4percent to move 393 units last year alone – which made a new record of high-end auto sales, triggered by the entry of new vehicle brands such as Porsche and the return of Renault models.

Kenya like most African countries was hard hit after a decline in the value in the Kenyan shilling which weakened to a low 106 against the US Dollar and other major world currencies, but signs beginning October last year pointed towards it regaining strength.

Industry statistics show Porsche has 18 percent of the country’s luxurycar market largely through sales

Secondly, the bold move initiated by Kenya’s President Uhuru Kenyatta in the fight against corruption by issuing stern warnings on corrupt public servants and companies, was highly welcomed in particular by stakeholders in the Private sector – and is wildly expected the ‘tough talk,’ will equally trigger a change of mind set both in public and private sectors.

New-vehicle registrations to boost Auto Industry this year

Just like in 2015, new-vehicle registrations is likely to set another record next year as a result of ongoing robust construction activities, energy-sector development as well as growth in tourism particularly with the appointment of Najib Balala – who is expected to revitalize the sector due to his vast familiarity of the industry during his long stint in the docket.

Rising demand for commercial vehicles and

Auto Yard

14 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

of its Cayenne CUV, which is selling for $100,000 to $300,000. Nairobi Porsche Centre located on Mombasa road, owned by local transport company MultipleGroup, is the country’s third largest luxury-car dealer today.

Government’s mode of leasing vehicles other than outright buying of certain units such as Subaru models (presently being used by police departments and other state agencies) to trim heavy upfront acquisition costs and check runaway maintenance costs is also likely to boost the sector in 2016.

Despite the passing of the Excise Duty levy of Sh 200,000 on all vehicles more than three years old which paved way for the abolition of the previous 20 percent of the car’s price – Stephen Mbuthi, a motor expert says the new law which was passed into law in November will not deter most car buyers, even though it will hit hard on first buyers wanting to own a new car.

Data from KMI shows that presently Kenya’s auto industry is dominated by Toyota, which has a 37.83 percent market share, followed by US car dealer General Motors (GM) which has 23.47 percent, while Simba Colt commands a market share of 11.05 per cent as at October, 2015 on the current markets.

THE AFRICAN BUSINESS FORTUNE - FINANCE

ENERGY

Olkaria

Geothermal; catalyst to Kenya’s Energy sector growth Kenya will continue to open its doors for investors with more companies in the country expected to take part in the in the country’s ambitious expansion plans in the electricity generation with the target to generate over 5,000 Megawatts (MW) to boost its current installed power – these investors will aim to exploit the host of opportunities opening up in the energy sector.

Renewable energy including hydro power and more particularly geothermal will be the order of the day as the government seems to be highly concentrating on the geothermal power mix to boost power generation with in an effort to bring down the cost of electricity to consumers, especially the large power users like industries.

Power generator KenGen for example is targeting the installation of an additional 766 Megawatts (MW) by the year 2020, 676MW of which will come from geothermal sources.

The utility firm had in last year commissioned 268MW; 248MW from geothermal and 20.4MW from wind, boosting its total

installed capacity to 1,611MW as at June 2015.

KenGen currently accounts for 70percent of the national installed capacity.

The country presently has about 2,200 MW of installed electricity generating capacity according to figures from Kenya’s national energy and petroleum policy, which is ordinarily published by its energy ministry.

It is estimated that around two thirds of the current installed power into the national grid, comes from renewable energy such as hydro, geothermal and wind power, while the remaining electricity is generated by plants that run on fossil fuels such as diesel and petrol.

Electricity demand across the country has shown an upward trend over the last decade when peak demand hit 899MW, and has since risen to 1512MW as at December 2014, while the number of customers connected has equally more than doubled to close to 4-million.

Construction activities will persist in 2016 according to the latest projections and further demand will be driven by the growth of industrial parks, iron and steel industries, railway as well as the development of

Lamu (LAPSSET) corridor project.

Given these developments, peak demand is projected to grow coming into 2016 by 3,400MW and 5,359MW by 2018 according to the energy ministry.

KenGen had this month confirmed it had already delivered 375MW out of the 844MW contribution to the Government’s plan to add 5,000+MW to the grid – of these geothermal accounts for the largest share with 330.6MW, 24MW of hydro and wind 20.4MW.

Geothermal energy is currently the dominant source of electricity accounting for about 50 percent of the national energy consumption requirements while the commissioning of Olkaria 280MW recently has propelled Kenya to the eighth position in geothermal power production in the world and the top position in the continent.

Olkaria pipe work Kenya

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 15

THE AFRICAN BUSINESS FORTUNE - FINANCE

TOURISM

Tourism CS, Najib Balala (C) with KTB boss Ndegwa Murithi (R) during the launch of 30M SMS campaign to boost domestic numbers

Balala’s return, lift on travel advisories to boost Tourism industry

Several changes have taken place in the tourism ministry – initiated by both the government and the industry stakeholders in an effort aimed at improving the country’s battered tourism sector.

The return of Najib Balala to the tourism ministry from the mining portfolio was wildly celebrated by industry players who expressed joy on his nomination to head the docket which fell vacant following the cabinet reshuffle that saw former bearer CS Phyllis Kandie shifted to the labor ministry.

In his cabinet reshuffle, President Uhuru Kenyatta hived off the tourism ministry from the larger EAC and handed it over to Balala who will now head the critical docket as a stand-alone ministry – much to the delight of stakeholders in the industry.

In a telephone interview with this writer, Kenya Coast Tourism Association (KCTA) chairman who is also a hotelier Mohamed Hersi said Balala’s return to the ministry looks certain to boost the sector’s reputation especially during this time the coun-

try’s tourism decline continues to gather speed.

Kenya’s visitors’ numbers have dropped by 25 percent in the first five months of the year with British visitors – the biggest contingent of tourists who visits the country having fallen by an even steeper 35 percent coupled with other factors such as travel advisories and terrorism scares.

2016 could be a better year for the industry, according to most analysts if the additional allocation of 10Billion in the recurrent budget for the recovery progression of the sector, appointment of Balala, lifting of travel advisories by some western countries, visits

by US president Barack Obama, Pope Francis and the just concluded World Trade Organisation (WTO), enhanced security across the country are anything to go by.

Data from Kenya Tourism Board (KTB) shows there has been a downturn of arrivals in Nairobi for instance

16 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

for the first six months of the year which stood at 12.3percent translating to 358,977 compared to 409,130 the same period last year. June performance was the worst period, with an average decline of 51.6 percent.

Latest statistics further show that Balala is arguably the most successful tourism minister Kenya has ever had in comparison to his earlier predecessors, having served for five years between 2008 to 2012 – taking over the docket when tourism figures were dwindling at an all-time low of negative 80 percent compared to the previous period.

Other factors poised to improve the sector include the recent lift on travel advisories from some western and European nations paving way for tourists to visit the country.

The 2015 Festivities witnessed an increase in tourist both international and domestic with most hotels and beaches at the Kenya’s coastal region recording high numbers in bed occupancy.

THE AFRICAN BUSINESS FORTUNE - REAL ESTATE Real estate industry to surpass 2015 surge The demand for real estate across the country and especially in Nairobi is poised for a robust growth this year following an impressive 2015 which saw property prices soaring on the back of a rapid sprawl in the exciting industry.

Satellite counties near the capital –Nairobi, such as Kiambu, Nakuru and Kajiado among others are have seen an uptick in activity in 2015 as developers look to channel funds into satellite cities and commuter towns – the trend is expected to continue into the new year.

Property market will continue to thrive into the New Year judging by the current market projections and growth in urbanization will further create a demand for increased volumes of high-quality commercial and residential houses.

Available data shows that Kenya is ranked the 8th most expensive retail space offering at US48/m2 per month in Nairobi and the prices of advertised land in Nairobi’s nine fastest suburbs have equally increased five-fold over the last eight years, according to Hass Property Index, issued by local real estate firm HassConsult in collaboration with asset managers Stanlib – this trend will most likely remain the same into the first quarter of next year and will increase going into the year.

Areas such as Upperhill and Kileleshwa prices soared by 789 percent and 614 percent respectively in 2015, while land in Upperhill is now the most expensive in the city, averaging Sh470 per acre – this figure is likely to escalate in 2016.

Recent development raises the hope that Kenya is gradually returning to its status as an attractive retail space with a growing industrial property market coupled with the growing middle-class who have the money to own new homes as well as affordable mortgage plans by commercial banks.

Interest rates have also relaxed over the last few months, making it possible for loan takers to afford mortgage and bank loans.

Construction industry in Kenya posted impressive growth last year despite high interest rates

Modern shopping malls have been mushrooming across the country and are likely to boost the sector as well such Thika road mall, Garden City, Two rivers among others.

Multinational companies are also coming into the Kenyan market in the hope of setting up bases and offices for their operations and this will certainly trigger growth in 2016. These companies will be keen on setting up office space and accommodation in emerging busy cities while the rise of regional tech hubs and an expanding oil and gas sector will also create jobs.

In addition to the limited availability of land, high housing demand has also contributed to the rise in the cost of house and apartment sales and rentals. Residential property prices rose by 8.3percent year-on-year in 2014, with apartment prices increasing 13.2percent, according to HassConsult data.

The single-largest contributor to the rise has been the increased demand for middle-income and affordable housing in Nairobi, with official estimates putting the need at 200,000 units annually. Reducing the housing deficit is a priority for the government, which has recently pledged to construct 300,000 affordable housing units by 2017.

The jump in property prices has attracted significant interest from the banking sector, prompting the Kenya Bankers’ Association (KBA) − the industry’s umbrella body − to launch in February 2015 its own house price index (HPI) for measuring and monitoring the sector’s development.

Despite efforts to grow the mortgage market in the country, it remains severely undeveloped, with most estimates placing the total number of mortgages across the country at about 20,000. Analysts cite high interest rates and low wages as obstacles to the growth of the sector.

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 17

THE AFRICAN BUSINESS FORTUNE - REGIONALS

RWANDA

Farmers embrace digital payment

R

wanda farmers are set to conduct business transactions digitally this is after Clinton Development Initiative (CDI) announced a partnership to enable farmers

CDI is an initiative of the Clinton Foundation set up by former US President Bill Clinton and Visa, the card payment multinational.

CDI’s work in Rwanda focuses on helping farmers improve their livelihoods through better training, improved connection to markets and inputs, and stronger linkages between farmers, producers, and other stakeholders in the agricultural sector.

The CEO of the CDI, Walker Morris said that they are working to empower farmers in Rwanda – giving them the knowledge and resources to improve their yields, profitability and also their livelihoods “This involves connecting individual farmers and cooperatives with banks, agro-dealers, retailers, commodity processers, crop buyers, and other producers, creating a digital payments

A group of farmers consulting

ecosystem” he said

Morris added that the new offering with Visa will improve the financial stability and security of the farmers.

“Farmers will have the resources and training to take advantage of digital payments, connecting them to Rwanda’s growing economy” he said

Stephen Kehoe, Senior Vice President for Global Financial Inclusion at Visa said that the main barrier to increasing the yield of individual farmers is lack of access to working capital.

“A secondary concern is making sure they get paid more quickly for their harvests.

We think we can solve both sides of this equation if we both digitize the payment process and educate farmers, which is what this partnership with CDI is designed to achieve.” He said This effort takes advantage of Visa’s development of a broader payment landscape– for example merchants who accept payments and consumers who make payments, as well as its partnership with banks in country and beyond.

Through these connections, CDI’s small-

18 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

holder farmer training and market access program will help farmers adapt to digital payments to increase their money management and business skills while establishing a strong foundation for economic development.

Visa’s solution ensures a secure and efficient way of transacting by using digital payment, thus reducing the need for cash within the value chain. The partnership will consist of a two-phased program, starting with a pilot in Kayonza and Gatsibo districts, in the Eastern Province of Rwanda.

In the first phase, one farmers’ cooperative will receive financial literacy training and have access to and test a Visa product through which they will receive and make value-chain payments. This will enable CDI and Visa to learn how to best understand the deeply felt and unmet needs of the farmers, which will inform scale-up efforts in the second phase.

Coupled with in-depth impact analysis, the pilot will help lay the foundation on which CDI and Visa roll-out the most fitting financial services to CDI’s farmer network in Rwanda.

THE AFRICAN BUSINESS FORTUNE - REGIONALS Year ends on a bleak note for sluggish automotive industry South Africa motor industry has steadily dropped in Export sales which has recorded a fairly substantial decline last month at 17,391 units which reflects a fall of 4 439 (20.3 percent) compared to the 21 830 vehicles exported during December 2014 this according to National Association of Automobile Manufacturers of South Africa (NAAMSA) The drop in the domestic vehicle sales last year was offset by exports reaching record levels, NAAMSA figures shows.

The figures also showed that, with the exception of light commercial vehicle sales, industry sales ended last year on a weak note.

That was because aggregate industry new vehicle sales last month of 49 250 units recorded a decline of 2 171 vehicles, or 4.1percent, compared to the total new vehicle sales of 51 421 in December 2014.

For the second year in succession, new vehicle sales in South Africa recorded a year-on year-decline last year.

NAAMSA attributed this to a further slowdown in the domestic economy, increases in interest rates, pressure on consumers’ disposable income and new vehicle pricing pressures.

That resulted in aggregate sales last year declining by 4.1 percent in volume terms to 617 927 units compared to the sales total of 644 259 in 2014.

Preliminary estimates indicate that motor industry new vehicle related sales turnover had grown by only about 3.6 percent, based on sales volumes and a weighted average estimated increase of about 6.5 percent in new vehicle prices to reach about R235-billion for the year.

On top of that, NAAMSA said, industry new vehicle export sales were estimated to have added a further R80billion to total industry revenue.

South Africa

“Total vehicle exports of 333 748 units were well up on the 276 936 vehicles exported in 2014,” the association said.

Looking ahead, the report said this year it is expected to be a dull year for the industry, particularly in the case of domestic new vehicle sales.

But on the upside NAAMSA said,

“Industry production levels, on the back of expected further growth in vehicle exports, should, however, remain in an upward phase.”

On the economy, Naamsa said the situation remained constrained with expectations of sluggish economic growth of around 1percent at best.

“The sharply lower value of the rand will translate into upward pressure in inflation, particularly in the case of new vehicle prices in the coming year.” it adds.

Car display in South Africa THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 19

THE AFRICAN BUSINESS FORTUNE - REGIONALS

EGYPT

New bank rules to boost business growth Egypt’s central bank has cut the maximum amount that banks are allowed to lend to a single client to 15 percent of their Tier One capital, down from 20 percent previously.

It says that it has amended credit market rules to encourage banks to lend to a wider range of clients, as part of efforts to mitigate credit risk and boost growth.

In a circular published on its website it terms the move as a way to reduce the risks associated with lending to a small number of large clients.

In a separate circular, it said that banks were also relying too heavily on retail lending, including personal, car and housing loans, and placed new limits on consumer credit.

It also cut the total sum that banks can invest in money market funds to 2.5 percent of their total deposits in local currency from 5 percent previously, a move bankers say could reduce their holdings of Egypt’s high-yielding government debt.

The changes follow an announcement by the central bank on Sunday that it would push ahead with implementing President Abdel Fattah al-Sisi’s plan to increase bank lending to small and medium-sized companies (SMEs) as part of efforts to boost growth and create private sector jobs.

“This will be good for the economy because it will encourage lending to SMEs and start the ball rolling in the economy and result in creating more jobs rather than just buying government debts,” one banker said.

The Egyptian government has long been accused of crowding the private sector out of the credit market, with a huge chunk of bank funds

being invested in treasury bonds and bills at yields reaching more than 14 percent for seven-year debt.

The consumer credit market has also grown, but business loans to private sector companies have lagged as banks have little incentive to offer what they perceive to be riskier loans and businesses balk at what they consider the high costs.

Economists have long said that a lack of financing to the private sector, particularly SMEs, has held back investment, job creation and ultimately growth in Egypt, whose economy has struggled since a

20 JAN - FEB 2016 THE AFRICAN BUSINESS FORTUNE

The Egyptian Central Bank in Cairo, Egypt

popular uprising in 2011 drove away foreign investors and tourists.

It grew by about 4.2 percent in the last fiscal year and the government forecasts growth of around 5 percent in the 2015/16, although the World Bank has cut its projected growth rate to 3.8 percent due to weaker global growth.

The SME initiative will see banks lend 200 billion Egyptian pounds ($25 billion) to smaller businesses at interest rates not exceeding 5 percent. In return, participating banks will be permitted to reduce their level of required reserves held at the central bank.

THE AFRICAN BUSINESS FORTUNE - REGIONALS

Goldstar airlines set to launch in Ghana

G

oldstar Airlines, a private Ghanaian airline company, is to roll out a training programme for its cabin crew workers after a recruitment exercise, which would field mostly suitably qualified Ghanaians.

The Public Relations Officer, John AshongMettle said that company as part of efforts to indigenize its airline operations will engage and rely on Ghanaians to man the aircraft which will touch down in no time.

“Towards this end, the airline will roll out a scheme to invite applications from suitably qualified Ghanaians to apply for the position of cabin crew to take care of the passengers on the aircraft in flight.

The objective of the airline is to promote and protect the interests of Ghanaians, in view of this, Goldstar airlines, will roll out special programmes tailored to the needs

of the aviation and tourism sectors”. He said He added that the company would deliver promptly on its promise of getting Ghanaians and other nationals to the earmarked destinations-London-Gatwick, Baltimore-Washington and GuangzhouChina, and connecting them to some of the West African countries with the view to promoting and building national network.

He assured Ghanaians of the airline’s commitment to work actively to promote national network and unity of purpose, promising that as a local host, it would open up possibilities to get a feel of Ghanaian.

“The company’s pride and joy will be to empower and equip the Ghanaian to pursue economic ventures in the aviation and tourism sectors,” Mr Ashong-Mettle

GHANA

said.

He announced that the company is flying down a cream of experts to train those who would make the grade after the interviewing exercise to put them through their paces to learn the tricks of the trade.

He added that when the airline company gets off the ground it would rely on expatriates as the cockpit crew but would unfold a tailor-made course of study to be undertaken by some Ghanaians who would be sent abroad to train to in order to get or have a handle on piloting the Boeing 767 series, which Goldstar airlines would be using.

Mr Ashong-Mettle said the company is ready to respond to persistent call on individuals and corporate bodies to partner government in reducing and eliminating the unemployment scourge in the country.

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 21

THE AFRICAN BUSINESS FORTUNE - EDUCATION

Makerere University ranked best in East Africa The last two global ranking of universities by Quacquarelli Symonds (QS) show Uganda’s Makerere University is the best in East Africa.

By Jacob Oginga

T

he Quacquarelli Symonds (QS) World University Rankings report published on September 15th 2015 once again shows that Uganda’s Makerere University is the academic heavyweight of East Africa.

22 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

The 93 year old public university has twice in a row emerged top in East Africa, beating the other regional academic giants like the University of Nairobi (UoN), Kenya, and the University of Dar es Salaam, Tanzania.

Going by the recent QS rankings, Makerere University has maintained

number 704 in the global league table, followed closely by the University of Dar es Salaam at 706, a decline from position 705 it held last year, and the University of Nairobi (UoN) at 708, a decline from its last year’s position 707.

But what methodology is QS using to rank the institutions?

THE AFRICAN BUSINESS FORTUNE - EDUCATION

The universities are ranked based on six performance indicators. They look at academic reputation, employer reputation, student-to-faculty ratio, citations per faculty, international-faculty-ratio, and international-student-ratio.

To measure academic reputation, QS uses a global survey, in which academics are asked to identify the institutions where they believe the best work is taking place within their own field of

expertise.

“The aim is to give prospective students a sense of the consensus of opinion within the international academic community,” says Laura Tucker, QS’ research analyst.

The employer reputation indicator is also based on a global survey. In this case QS asks employers to identify the universities they perceive to be producing the best graduates.

“The purpose of the employer survey is to give students a better sense of how universities are viewed in the graduate jobs market,” says Tucker.

The indicator of student-to-faculty ratio is a measure of the number of academic staff employed relative to the number of students enrolled.

“In the absence of an international standard by which to measure teaching qual-

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 23

THE AFRICAN BUSINESS FORTUNE - EDUCATION ity, this indicator is used to identify the universities that are best equipped to provide small class sizes and a reasonable level of supervision per student,” says Tucker.

The QS crew also looks at citation-per-faculty, which aims to assess the universities’ research impact. A ‘citation’ is a piece of research being cited, or referred to, within another piece of research.

Generally, QS states, the more often a piece of research is cited, the more influential it is. So the more highly cited research papers a university publishes, the stronger its research output is considered.

“We use the latest five complete years of data, and the total citation count is assessed in relation to the number of academic faculty members at the university, so that larger institutions do not have an unfair advantage,” explains Tucker.

The last two indicators focus on how successful a university has been in attracting

students and academics from other na- student population of 27,054. tions. This is based on the proportion of international students and faculty mem- Global Overview bers at the institution.

Globally, the top universities are the usual suspects from the United States (US) and Based on the QS methodology, Makerere United Kingdom (UK). Massachusetts University scored higher across the six Institute of Technology (MIT) leads the indicators, that is, academic reputation, pack, followed by Harvard University, Uniemployer reputation, student-to-faculty versity of Cambridge, Stanford University, ratio, citations per faculty, international- and California Institute of Technology in faculty-ratio, and international-student- that order. ratio compared to the other top East African universities.

As you scroll down the list of over 500 world universities, the first African inGoing by the QS 2015/16 survey, Maker- stitution is South Africa’s University of ere University has 911 academic faculty Cape Town at position 171. Next is Stelstaff members, student population of lenbosch University and University of 38,697 and 716 international students.

Witwatersrand at positions 302 and 331, respectively, both from South Africa.

The University of Dar es Salaam has 951 faculty staff members, slightly above “The primary objective of QS World UniMakerere, a student population of 15,721, versity Rankings is to help students make and 149 international students. informed comparisons of leading universities around the world,” says Tucker.

The University of Nairobi has 1007 faculty staff members, the highest, and a

Kenya’s Prof. Ngugu Wa Thiong’o is one of Africa’s brains

working in the US MUBS-13-Billion-Library-structure

24 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

THE AFRICAN BUSINESS FORTUNE - ICT ENERGY

KTDA targets Sh5.5Bn loan facility with green energy schemes

By Monicah Muema

KTDA Chief Executive Officer Lerionka Tiampati

The Kenya Tea Development Authority (KTDA) is betting on the Sh5.5billion loan facility from International Finance Corporation (IFC) to construct seven small hydropower projects (SHPs) across tea growing regions.

KTDA Power Company (KTPC), a subsidiary of KTDA Holdings will develop the projects across the country to power its tea factories with renewable energy as part of the agency’s long-term plan to generate 15 MW of electricity which is expected to reduce huge operational costs the factories sustain periodically.

Each of the power plants is expected to have an installed capacity ranging from 1.1megawatts (MW) to 6.5MW. Speaking while signing the agreement, KTDA chief executive Lerionka Tiampati said that each hydro power project will be fully operational in the next two to three years upon completion and will cut down by half the amount of power the agency pays to

Kenya Power in terms of tariffs.

“Construction of three hydropower projects in Gura, Chania and North Mathioya are at advanced stages, funded by an earlier credit line from AFD. With the funding that we have received today, construction works for Nyambunde, Kiringa, Kipsonoi and Nyamasege SHPs will commence in 2016 and upon completion we hope to reduce our power bills by half,” he said.

Individual tea factories spend on average Sh30 million to Sh65 million yearly on electricity, depending on factory size, crop level and the variable costs such as fuel cost adjustment and forex that are used by Kenya Power in the calculation of electricity bills – while KTDA spends up to Sh2billion on power bills.

KTDA (Holdings) Chairman, Peter Kanyago confirmed yesterday that the company has already entered into an agreement with Kenya Power- the country’s power distributor to sell excess electricity generated to the national grid at a cost of sh8 cents per unit through a feed-

26 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

in-tariff programme.

“We managed to negotiate with Kenya Power to sell some of the electricity to the national grid at a cost of Sh8 cents per unit,” he said, adding that the SHPs are intended to reduce the cost of energy for each tea factory, which currently forms their single biggest cost component – while in the long run will boost tea earnings for farmers.

The additional generation is further expected to boost the country’s current national installed capacity of 2,150MW to the grid with various companies like KenGen, GDC among other independent Power Producers (IPPs)having lined up a mix of other sustainable projects as part of government’s 5,000MW plus program.

The Sh5.5 billion credit facility was signed yesterday in partnership with the Global Agriculture and Food Security Program (GAFSP), French Development Institution (Proparco), and the Netherlands Development Finance Company (FMO) and has a repayment term of 10 years with a three year grace period.

KENYA FINAL RETIREMENT QUARTER PAGE.pdf

C

M

Y

CM

MY

CY

CMY

K

1

8/7/15

9:30 AM

THE AFRICAN BUSINESS FORTUNE - ENTREPRENEURSHIP

THE AFRICAN BUSINESS FORTUNE - CORPORATE

COVER STORY

Solomon Angutsa Atsiaya, CEO Kenya Police Sacco

Business ‘troubleshooter’ with a Midas Touch He is the CEO of Kenya Police Sacco. This is his journey to the top

By Steve Umidha

T

urnaround specialist, fortune changer, superhero – call him what you will. He’s a man who has used his smart skills and undeniably a bit of fluke to transform some of the organizations he’s worked in.

Solomon Angutsa Atsiaya didn’t set out to be a business troubleshooter but he has spent most of his professional life turning organizations around or reinventing them.

After his lengthy stint with Egerton University SACCO and Kenya Wildlife Service (KEWISCO) SACCO among other institutions, Angutsa moved to head Kenya Police Sacco as CEO tasked to turn around the organization’s fortunes, and within a short period of time he rehabilitated the Society 28 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

on its head by improving quality and services – factors he reckons were key elements in revitalizing the then‘sleeping giant.’

“I didn’t set out to be a fixer of companies,” he says. “I think it’s a function of being in the business long enough to understand what needs to be done to realize healthier outcomes.”

A Management Scientist and an accountant by profession as well as a ‘corporater’ by training and experience, Angutsa is today the Chief Executive Officer of Kenya Police Sacco – a savings and credit society that not only has a new business model of operation, but it is also one of the counted ISOCertified Sacco in the country and a much improved financial institution from when the 45-

year old – unassuming veteran tookover its reins close to a 7 years ago.

“When the Board appointed me into this position, it had a lot of expectations and I was motivated to take up the challenge having undertaken similar leadership roles in my previous places of work, it was never a hard tenacityfor me to make– I had a laid out strategyto steer back the Society to its potential,” he opens up during an interview.

Solomon Angutsa Atsiaya honed his managerial skills back in the days and is one of the most iconic, successful yet humble corporate individual credited for having restructured and turned around dwindling fortunes of many Societies – a status he blushingly says,“It is probably a calling to bring life into struggling companies – I’ve never joined a ‘stable’ organization,”he

THE AFRICAN BUSINESS FORTUNE - CORPORATE

admits.

This man took a distinctive approach, which has put him in an increasingly powerful position at the Society.

“Our intention was never to look for a quick fix in building the Kenya Police Sacco, rather a long-term tactic that has proved vital to the company’s status today,” he says, during an in-depth interview in his office. “Our intention was to build a stable corporate brand.”

The Sacco’s headquarters is in a sleek glass tower, yet when you emerge from the elevator on the Mezzanine Two(M2) , you feel as if you’ve entered an extravagant hunting lodge. The aroma of leather and mahogany is transporting. The walls are neatly-paneled; the chandeliers are brass, the couches overstuffed. You can hardly believe you’re in Nairobi.

He ushers our team into a streamlined office, boasting a wooden large desk, a black lacquer coffee table, and steel bookshelves peppered with corporate paraphernalia and treasures including trophies and awards.

But this isn’t who Solomon is. On this day before this interview, he and his team spend their afternoon in a different kind of space: simple, sparse, modern boardroom – where his staff had planned a surprise birthday celebration for him.

He’s dressed casually in a simple navyblue corporate T-shirt and a pair of meek pants and sneakers.

He begins the interview with letting us in on his appointment in 2008 which he confesses provided him with plenty of challenges and opportunities in equal measures.

The economic environment at the time he says, was changing fast with the currency relatively steadying, deregulation came and restrictions on banking were lifted and markets were beginning to open up for Saccos, albeit slowly.

The country had just been liberated from political upheavals with the penning of a new deal between warring political camps into forming a coalition government – following the eruption of tribal clashes which resulted from a fiercely contested general election a year before

Kenya Police Sacco Plaza

(in December 2007).

“It was a very interesting time –a period of a mixed bag of opportunities,” says the soft talker.

“I’m having a lot of fun where I am presently,” he says. “It’s great to be in a business that’s growing and so I am happy where I am and with what I am doing,” he says.

Eight years later, it’s a different story and the man behind Kenya Police Sacco success is not about to stop. “I am not done, I can’t say I have done enough in the Society from where I sit, it has been a team effort and I believe a lot more is in the offing.

Under his stewardship, Kenya Police Sacco has accumulated over Shs18billion in assets and the bloke behind that achieve-

Solomon reveals there was an enormous amount of growth going on with many companies settling back to business after the clashes and new floats were rising on the back of the relaxed economy, and there were not so many Saccos at the time as there are today.

‘Solo,’ as he is fondly referred to by some of his staff, Mr. Angutsa has transformed Kenya Police Sacco into a nationwide commercial enterprise – raising annual turnover from Shs500 Million (in 2008) when he took over the bridle and propelled it to over Shs2.5 Billion today in revenues, with a projected forecast of growing the Sacco to a Shs.10 Billion monetary power house in the next five years.

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 29

AFRICAN BUSINESS FORTUNE - CORPORATE

ment is confident that the company will achieve its asset target which he articulates will be stimulated from building on the Sacco’s reserves on an annual basis in its 5-year short term strategy – as well as increasing membership from the current 48,000 members to a minimum aim of growing the figure to 10,000 new members this year alone – 4,000 members more compared to 6,000 ones the Sacco registered last year (2015).

His observation for 2016 is that through the registration of the Kenya Police Investment Co-operative Society Limited last year, the Society will aim to empower its members to take up loans to advance their projects as well as take advantage of the growing co-operative muscle to pull down the cost for borrowing and accessibility to funds.

The Sacco further aims to invest and diversify into Real estate sector in abid to boost its business portfolio as well as advance its I.T systems.

Other key area, he says will be to grow the company into a virtual banking platform in an effort to increase membership and boost tranquil registration of new membership and expose them to financial services.

“We have big plans this year and one key factor will be to increase our membership as well as ride on the ISO certification to improve our service delivery, customer relations as well as service excellence which will in return address speed and convenience. Also the acquisition of Standard code of practice is also meant to conform into doing things differently in a better way.

“With the ISO certification we wanted to improve our services and particularly our Human resource management (HR),” he says.

Other changes Mr. Angutsa is attributed to have brought into the Society include the improvement of Document Management System (DMS) services and loan applications.

“Today a loan applicant of let’s say Shs.1million can take him a minimum of 2 hours to be processed while through mobile phone application it takes minutes,” he says, “ previously we had a lot

Solomon Angutsa Atsiaya

of challenges in documenting a lot of paperwork it’s not the case anymore.”

He believes the catalyst for growth is that the Industry is finding it hard to keep up with the demand for financial services, due in part to the tech-savvy population and the range of extended services now available.

“The demand for financial services is growing four times the rate of GDP yet the sector has just 25 percent penetration with slightly over 80 percent market share still untapped- so you end up with institutions really struggling to meet that demand,” he concludes.

About Solomon Angutsa Atsiaya: • Age: 45 years old • Position: Kenya Police Sacco CEO and serving his 6th year in office • Education: Holds a Bachelor Degree in B-Com in Management Science from Egerton University and MBA in Operations Management from School of Business University of Nairobi (UoN).

• Has a Diploma in Co-operative Management from the Co-operative College of Kenya (CCK)

30 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

• • •

• • • • • •

A CPA (K) holder and a member of the Institute of Certified Public Accountants Kenya (ICPAK) A Member of the Kenya Institute of Management (KIM) Recognized by WOCCU in 2015 as the International Credit Union Development Educator (I CUDE), Also a graduate African Development Educator (ADE) and Caribbean Development Educator (Carrib DE).

A Mentor to Corporate leaders and many upcoming SACCOs Marital Status: Married

Awards: 2nd Runners-Up Fire awards 2015 SACCO Category for best practice in financial reporting Kenya Police Sacco Chairman David Mategwa received 2nd Runners-Up Chairman of the Year at 2015 COG Award from ICPSK Kenya Police SACCO Winner Cooperative Sector 2015 COG Award from ICPSK ISO Certified; ISO 9001:2008 Quality Management Systems (QMS).

AFRICAN BUSINESS FORTUNE - CORPORATE

INTRODUCTION Kenya Police Sacco society was registered on 20th November 1972 under the Cooperative Societies Act Cap 490 of the laws of Kenya and started operating in June 1973.

Our mission is to facilitate the mobilization of savings & provision of cost effective financial and non-financial products and services to our members and customers in Kenya and beyond.

Our overall vision is to be a Sacco that empowers members for improved quality of life.”

Our motto “United for prosperity”

WHO CAN JOIN KENYA POLICE SACCO?

A person of either gender and is 18 years and above is eligible for membership if in satisfaction of the following requirements:1.

2.

3.

4.

5.

Is an active and regular administration or retired police officer.

Is a civilian in the employment of the Kenya Police SACCO Society Ltd All salaried employees working in any registered company in Kenya.

The Business community, where applicable.

Is a child or spouse of either 1, 2, 3 or 4 above

KENYA POLICE SACCO PRODUCTS AND SEVICES FOSA Credit Products 1.

2.

3.

4.

5.

6.

Emerency Loan  3 times members’ deposits.  12 months maximum repayment period.  Interest rate of 1.125% p.m on reducung balance.

School fees Loan  3 times members’ deposits.  12 months maximum repayment period.  Interest rates of 1.125% p.m on reducung balance.

Normal Loan  3 times members’ deposits.  48 months maximum repayment period.  Interest rate of 1.125% p.m on reducung balance.

Asset Financing Loan  3 times members’ deposits.  24 months maximum repayment period.  Interest rate of 1.125% p.m on reducung balance.

Super Loan  3 times members’ deposits.  60 months maximum repayment period.  Interest rates of 1.25% per month Muslim Loan  2 times members’ deposits.  12 to 48 months maximum repayment period  2.5% commission on the approved amount to be charged upfront.  Guarantors required  Has no Interest

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 31

THE AFRICAN BUSINESS FORTUNE - CORPORATE FOSA Credit Products 1.

2.

3.

Salary Advance  Maximum repayment period of 3 months.  Interest rate of 2% of p.m Fosa Flex  Maximum repayment period of 6 months.  Interest rate of 3% p.m on reducung balance.

Fosa Golden  Maximum repayment period of 9 months.  Interest rate of 4% p.m on reducung balance.  2 guarantors required.

FOSA Accounts 1.

2.

3.

4.

Junior Account.  Available to members children below 18 years.  Minimum balance KES 500  Free withdrawals with bankers cheque for school fees.  Interest earning threshhold is KES 2,000  Interest rate of 4% p.a Holiday Account  Available to all members.  Account holders make deposits into this account for a minimum period of 12 months before any withdrawal can be done.  Interest rate of 4% p.a Group/Corporate Account  The account does not attract a periodic ledger fee.  No issuance of ATM card and M-Sacco link.

Fixed Deposit Account  Available to all members.  Fixed savings with flexible terms for a minimum period of 3 months to 12 months.  Competitive Interest rates of upto a maximum of 12% p.a  Withdrawal upon maturity of contract.

BENEFITS OF PROCESSING YOUR SALARY THROUGH YOUR FOSA ACCOUNT   

You automatically can apply for all FOSA loans.

You qualify to place standing orders for monthly payments.

You automatically qualify for dividend advance.

KENYA POLICE SACCO VISA BRANDED ATM CARD   

The card is issued to all Fosa account holders.

Members can access their accounts at the SACCO from any visa branded Automated Teller Machine [ATM] links.

You can use the card to purchase goods and pay off bills at merchants point of sale terminals e.g Uchumi, Nakumatt, Bata shops, fuel stations, hospital bills etc.

OTHER VALUE ADDED SERVICES M-Sacco Mobile Banking M-pesa Loan Clearance on behalf of the members Deposit Boosting

Free registration

Pay Bill No. 169500 The SACCO clears outstanding loans on members payslips & bank loans to enable them to get a bigger loan.

Enables a member to boost their deposits inorder to qualify for a bigger loan

32 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

Ready money at your comfort Deposit using your M-pesa to any SACCO accoint anytime 10% commission is charged on the cleared amount.

10% commission is charged on the amount advanced

THE AFRICAN BUSINESS FORTUNE - CORPORATE

Kenya Police Investment Cooperative [KPIC] is a wholly owned subsidiary of Kenya Police Sacco Society Ltd. It was registered on 12th May-2014, the 1st Annual delegates meeting was held on 03rd June -2014 at the Sarova Panafric Hotel, Nairobi.

The objectives of this investment is to mobilize resources to members to enable them venture into real estate market i.e. buying land, house & home ownership etc.

The membership is limited to Kenya Police SACCO society Ltd members.

They can join by first filling the membership application form; the form can be found in our website www.policesacco.com

The registration fee is KES 2,000 and the share capital is KES 20,000. Members can pay cash or make monthly contributions through standing order from their bank or by deductions from the pay-slip.

CALL OR VISIT US AT OUR OFFICES Head Office â&#x20AC;&#x201C; Nairobi

Mombasa Branch

Ngara Road, Off Muranga Road,

Nkuruma Road

Pilot Number: 0709 825 000

Email:info@policesacco.com

Eldoret Branch

Facebook: Kenya Police Sacco

Kirem Plaza, 3rd Floor

P.O Box 51042-00200, Nairobi

Website: www.policesacco.com

Twitter: @Police Sacco

Oriental Building, Ground Floor

Ronald Ngala Street

KENYA POLICE SACCO SOCIETY LTD: ISO 9001: 2008CERTIFIED

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 33

THE AFRICAN BUSINESS FORTUNE - CORPORATE

About Kenya Police Sacco Kenya Police Staff SACCO Society Limited was registered on 20th November 1972 and was issued with a registration certificate number CS/2092.

The Society has seen growth in its membership from a few hundredâ&#x20AC;&#x2122;s currently stands at 40,101.

It has 9 elected members who form the Board of Directors of the SACCO and 3 members of the Supervisory Committee.

Since its inception the Sacco has accumulated over Shs18billion in assets

It currently has 48,000 members and targets to grow its membership to a minimum 10,000 new members this year alone approximately 4,000 members more compared to 6,000 the Sacco registered last year (2015) About David Mategwa National Chairman Kenya police Sacco and Director at Kuscco Kenya Business Supplies and Equipment Current Kenya police Sacco, Kuscco, The Cooperative Bank Previous Kenya Police Sacco

Education Ambira High School

David Mategwa,National Chairman Kenya Police Sacco 34 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

THE AFRICAN BUSINESS FORTUNE - ECONOMY

EAC countries fall bottom in the new Consumer spending ranking

By Jacob Oginga

K

enya, Uganda and Tanzania ranked poorly in the new consumer spending ranking in the category of fastgrowing middle class economies, a new survey by Agility Emerging Markets Logistics Index has shown.

The survey released in January ranked Kenya in the 43 position behind Tanzania at position 40 while Uganda came third at position 45 among the countries that fell toward the bottom of the rankings, while South Africa and Nigeria toping the rankings in the Sub-Saharan region at 16 and 17 positions respectively.

The report however classified Kenya among some of the most promising markets in Sub-Saharan Africa, but cited poor infrastructure, sufficient power generation and corruption as some of the vices hindering its growth.

More than 1,100 executives took part in the survey with only 21.2 percent of logistics industry executives saying their companies had operations in these countries. Another 12.7percent said they are in the planning stages to enter African markets, while than 43percent said they have no plans to set up in the continent.

“The results show a serious disconnect between the perception of the market and actual opportunities. These are some of the

world’s fastest-growing economies. Africa’s requirement for logistics services and supply chain expertise is huge and growing every day.

“At the same time, many of the companies that need logistics to enter the market don’t know how to get started in Africa or aren’t willing to take the risk,” said Geoffrey White, CEO of Agility Africa, adding that despite recent growth and surging foreign investment the region remained a challenging frontier for many investors.

Available figures show that consumer spending in Kenya grew to 2660570 Ksh Million in 2012 from 2350130 Ksh Million in 2011 while government’s spending skyrocketed to 1587.47 Ksh Billion in Jun 2015 from 1.347.64 Ksh Billion in May of the same year.

The country’s consumer spending averaged 466264.63 KES Million from1964 until 2012.

Another research by KPMG titled Africa Consumer and Retail Sector Report predict the country’s consumer spending will carry momentum this year and will pick up pointing to the sharp and accelerated growth witnessed last year.

In a separate survey done by Nielsen last year in seven African countries including Ethiopia, DRC, Kenya, Nigeria, Tanzania, Uganda, and Zambia, the affordability of

brands was found to be the most important factor in influencing consumers’ decision to buy, picked by 37percent of respondents. Brand loyalty also plays a big role, according to the survey.

The rise in spending is expected to come from household goods, retail industry, hotels and restaurants. Kenya has the highest penetration of modern retail channels across the region. Almost 90percent of national grocery sales in Kenya are still generated in the traditional and informal sectors.

Nairobi for instance is home to most of the modern shopping malls in the country, though the cities of Mombasa and Kisumu have also witnessed an increase in retail developments over the past few years.

Mobile banking and mobile purchases will also increase consumer spending and have both led to a notable shift in shopping trends across the country, with Kenya seen as taking the lead in the continent in terms of the use of ‘mobile money’.

The 2016 Agility Emerging Markets Logistics Index uses three metrics to assess and rank 45 emerging markets countries while looking at size and growth. Attractiveness makes up 50percent of overall Index score, while compatibility and connectedness each account for 25percent of overall score.

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 35

WELCOME TO KENYA

$Q\ WLPH \RX Ã&#x20AC;\ LQWR .HQ\D UHOD[ DQG HQMR\ \RXU KROLGD\V DV .&$$ LV DW \RXU VHUYLFH LQ HQVXULQJ \RXU DYLDWLRQ VDIHW\ DQG VHFXULW\ URXQG WKH FORFN 2XU DLUVSDFH LV IXOO\ FRYHUHG E\ UDGDU DQG RXU 9+) V\VWHP LV IXOO\ FRQQHFWHG YLD D GHGLFDWHG VDWHOOLWH OLQN WR HQVXUH IDVW DQG SUHFLVH FRPPXQLFDWLRQV 2XU QDYLJDWLRQDO DLGV QHWZRUN LV LQWHUQDWLRQDOO\ FRPSOLDQW WR KDQGOH DLUFUDIW PRYHPHQW WKURXJKRXW WKH FRXQWU\ DQG D IXOO\ DXWRPDWHG DHURQDXWLFDO

LQIRUPDWLRQ V\VWHP FRQQHFWV WKH FRXQWU\ WR DOO SDUWV RI WKH ZRUOG :H DUH DW WKH IRUHIURQW RI IDFLOLWDWLQJ WKH JURZWK RI D PRGHUQ DQG YLEUDQW FLYLO DYLDWLRQ V\VWHP WKDW FRQWULEXWHV WR .HQ\D¶V GHYHORSPHQW :H FRQWLQXH WR HQFRXUDJH LQYHVWPHQWV IURP ERWK GRPHVWLF DQG LQWHUQDWLRQDO DLU RSHUDWRUV LQ RUGHU WR UHDOL]H .HQ\D¶V HFRQRPLF EOXHSULQW 9LVLRQ

Our Mandate: 7R SODQ GHYHORS PDQDJH UHJXODWH DQG RSHUDWH D VDIH HFRQRPLFDOO\ VXVWDLQDEOH DQG HI¿FLHQW FLYLO DYLDWLRQ V\VWHP LQ .HQ\D LQ DFFRUGDQFH ZLWK WKH SURYLVLRQV RI WKH &LYLO $YLDWLRQ $FW KAA Complex, Jomo Kenyatta, International Airport, Nairobi Tel. +254 020 827470-75, Mobile: +254 728 606 570, Email: info@kcaa.or.ke | Website: www.kcaa.or.ke

THE AFRICAN BUSINESS FORTUNE - TECHNOLOGY

Galaxy Note 5 the stylus-driven smartphone

By Brian Tirok

Samsung has released a new galaxy S5 phone in the Kenyan Market. Galaxy Note line has since been one of Samsung’s greatest assets in the mobile market.

You may be thinking of getting this gadget but as with buying any product, you may be unsure if buying this phone is worth paying the price.

Meet Samsung’s Galaxy Note 5, the newest addition to the market of extralarge smartphones, and the most elegant phablet-style device you’ve ever seen.

The device mainly targets the professional artist who loves jotting down points/ideas on the screen during meetings or whichever the situation as it offers a unique tool; The S stylus pen, but it’s not limited to just artists.

Unlike its previous generation of the Note family, galaxy note 5 is light and easy to carry around much like Samsung Galaxy edge+; a sleek phone which weighs a light 171g and measuring 153.2 by 76.1 cm by 7.6 mm, making it ultra-slim. The sim card supported is a nano-sim, it has the network technology which comes with three options; GSM, HSPA and LTE.

it super-fast in carrying out operations. It lacks a memory card slot but this is not an issue as the internal memory is large. Buyers can opt to get the 32GB or 64GB internal memory version, both versions having 4 GB of RAM.

The rear camera is of a good quality, with 16MP and LED flash, not to mention other added features like image stabilization and autofocus. The secondary camera is not too bad, having 5MP. Other features include sensors like accelerometer and proximity sensors and also new additions like fingerprint, heart rate, compass and barometer sensors. It also supports wireless charging and S voice natural language commands and dictation.

The battery used here is the Li-Po 3000 mAh battery, unlike the Li-Ion battery used in most phones. The battery life is good, with an endurance rating of 85h.

Generally, this phone is a great buy. It is especially good for gaming fans. The S stylus pen has been designed to make playing

games on this device easier. The feature of wireless charging is also a smart inclusion. The wireless charging is pretty fast, it takes nearly the same amount of time as normal charging does.

The design and materials used are also of good quality, as opposed to the Note 4 which had a plastic back. A lot of developments have been made.

On the flip side, however, the 32GB of storage space is little for users who store a lot of data on their phones, not to mention that you can a phone with better storage capability for a lesser price.

The 64GB version is difficult to come by as Samsung released it limitedly. The price is also a bit high for the average consumer, considering one can get a phone with similar specifications for a lesser price.

If you want a stylus-driven smartphone experience, I would encourage you to. It comes in four color options; Black Sapphire, Gold Platinum, Silver Titan and White Pearl.

On feature that stands out about this phone is the huge screen size, at 5.7 inches, giving the phone an approximate screen-to-body ratio of 75.9 percent, you therefore do not have to struggle while staring at your screen.

Another virtuous feature about the Galaxy Note 5 screen is the Super AMOLED capacitive touchscreen display, with a resolution of 1440 x 2560 pixels (a pixel density of approximately 518).

The display is also multitouch, with the option of using the S pen stylus to perform actions on the screen. The screen is protected by Corning Gorilla Glass 4; therefore the screen will not crack with minor falls.

The Android version here is the new Lollipop, version 5.1.1, with a Quadcore 1.5 GHz Cortex A-53 and Quadcore 2.1 GHz Cortex A-57 CPU, making

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 37

THE AFRICAN BUSINESS FORTUNE - ICT

SMEs most vulnerable to Cyber attacks

By Monicah Muema

C

yber attacks in the past year have put many small businesses on red alert. Due to their low budgets for security most SMEs IP’s, trusted customer information and original innovations easily accessible by hackers.

SMEs are a bigger target than they think. Most of them do not realize the extent of the cyber security threats they face. We hear it over and over again, and recent government research confirms it: asked if they agreed with a number of common cyber security misconceptions, 78percent of SME respondents to a Cyber Streetwise survey believed at least one. Two thirds of them (66percent) did not even think their business was vulnerable at all. Make no mistake: if you have got a website, you are vulnerable.

Estimates show that Kenya lost nearly Sh2 billion ($22.56 million) to cyber crime in 2014, with close to 1,000 Kenyans falling victim to internet fraud on a daily basis. Uganda’s 2012-2013 annual Police Crime and Traffic Report says the country recorded a 149 per cent increase in economic crimes.

Mobile money and automated teller machine (ATM) fraud took the blame for the loss of about Ush1.5 billion ($575,373 million). Tanzania lost about Tsh1.3 billion ($782,419) last year, according to statistics from the Bank of Tanzania.

Experts suggest that SMEs are particularly disadvantaged in the development of secure employee behavior as their information assets are least protected. SMEs in developing countries generally have a weak understanding of information security. Security technologies and control measures, and neglect to carry out risk assessments to develop security policies.

This may be because SMEs lack the funds, time and specialized knowledge to coordinate information security or offer adequate information security awareness, training and education.

Majority of those who run SMEs are ordinary lot whose educational back-

ground is lacking. They may not be well equipped to carry out managerial routines for their enterprises So what can you do about the growing threat of hackers? First, put in place the best tech barriers you can afford, like a cloud-based security app. Then patch your biggest vulnerability: your people. Employees should be taught not just to devise smarter passwords and spot sketchy emails but also to think critically about their online actions.

When the rate of return on investment is high and the risk is low, you are bound to find people willing to take advantage of the situation. This is exactly what happens in cyber crimes thus accessing sensitive information and data and using it means a rich harvest of returns and catching these cyber criminals becomes difficult. This has led to a rise in cyber crimes in Kenya and the rest of the world as well.

Here is the brief Rescue Mission path.

Take your site offline temporarily. Contact your hosting company and ensure the site is taken offline temporarily.

The next step is to clean up the pages or codes and the database. At this point the assumption is you had backed up website files and database. Time to try to figure out the damage done… What was the hacker after?

Sensitive Information or just being there for the sake of it. Look for the

39 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

modified files or newly added on the web server. How about the unknown user accounts? Complete reinstallation of the iOS would be the best way out here. Then use the saved backup to restore your site.

Cyber criminals tend to work together to improve their skills and even help out each other with new opportunities. Hence, the usual methods of fighting crime cannot be used against cyber criminals.

Efforts to arrest and prosecute suspects are being hampered by lack of effective laws and the methods used by cyber criminals and technology keeps changing too quickly. The Kenyan government and firms should therefore keep up with the current technologies and incorporate them in the fight against cyber crime.

In Kenya, Microsoft has already partnered with the Kenya Copyright Board to combat piracy, which according to the 2011 BSA Global Software Piracy Study, currently sits at 83% across the East and Southern Africa region.

Government institutions have also not been spared. Criminals have managed to hack government websites and Twitter accounts at will. In Kenya, for example, those that have fallen prey to hacking include the Ministry of Transport, the Central Bank, Kenya Police and the Kenya Defence Forces.

International companies like Sony and eBay show that even big companies, which invest millions on security, are prone to hacker attacks. Small businesses often assume they will not be a desirable target but is it a risk worth taking?

THE AFRICAN BUSINESS FORTUNE - ENTREPRENEURSHIP

SMEs bet on new handbook to boost the sector

By Maurice Momanyi

P

layers in the Micro and Small Enterprises (SMEs) sector in the country and the region at large are set to benefit more from an updated sector booklet on services and products offered by the small business owners.

The launch of the second edition of the Medium and Small Enterprises (MSMEs) Handbook is a project of the SME Support East Africa (SME S-EA) and the SME Handbook Secretariat, collaborating with a technical team from key public and private sector stakeholders.

The comprehensive information handbook is developed with the knowledge that SMEs, especially those in the rural areas experience major challenges accessing business services as a result of little awareness of what the market is offering.

Adan Mohamed (R), CS Ministry of Industrialization

In recent years, the SME sector has been cited as a key driver of the economy, providing the bulk of jobs for not only the country’s, but also the region’s youth population.

At the launch of the second edition of the MSME Handbook at a Nairobi hotel, the Cabinet Secretary for Industrialization and Enterprise Development Adan Mohamed said the government is sensitive to the important role SMEs and the private sector in general play in the country’s economic development.

“The government fully recognizes the critical role that the private sector, development partners and other stakeholders are playing in ensuring appropriate products and services are available to the SMEs. “This is why my ministry has collaborated with the SME Handbook (Secretariat) which is in line with the national goal of developing this sector as

government continues to support similar initiatives that help in reaching our objectives for the sector,” CS Mohamed said.

This second edition of the SME Handbook will be distributed through the national and counties information centers, various apex business member organizations in the MSMEs, women and youth entrepreneurs sector, national and county government information centers, among other outlets.

The first edition of the handbook, produced in 2011, was adopted by the then Ministry of Trade and other key institutions as a reference publication in the Business Information Centres (BICs) spread across the country.

Speaking during the SME Sector Handbook Project Team Leader Richard Muteti, expressed gratitude to the government’s recognition of the SMEs sector in the country’s development, adding that the launch was a concerted effort made to empower small

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 39

THE AFRICAN BUSINESS FORTUNE - ENTREPRENEUSHIP business owners with timely and relevant information.

“The SMEs sector is the largest employer and incubator for new business and budding entrepreneurs in Kenya. This sector covers all areas of the economy and is a key driver of the country’s industrialization agenda,” Muteti said.

“Creation of a platform that can help the SME sector share information and attract business is one of the means that can be used to achieve growth and expansion in the sector.”

Muteti added that the SME Handbook is specially developed by industry players with support from various government institutions to close up on the information gap. He went on to say that information sharing on innovation, technology, finance and a budget is essential, terming it “an idea whose popularity has been felt in the sector and beyond.”

Speaking to the media on the sidelines of the launch event Mr. Muteti explained that emergence of new products; services and advances in technology in-

troduced into the sector necessitated the development of the updated SMEs Handbook.

He said the handbook will provide a roadmap to sector players in Kenya on what is available for them in the public and private sectors to assist them in growing their businesses, adding that it also provides a wealth of information on how to run their businesses and empower them to become better business people.

Muteti, who is also the Chief Executive of the Kenya National Federation of Jua Kali Associations (KNFJKA) and the chairman of COMESA Business Council SMEs Work Group, said the SMEs Handbook’s countrywide distribution network will ensure that the book reaches all small businesspeople throughout the country hence effectively mitigating to a large extent the the problem of access to important sector information.

Deputy Patron Keli Kiilu, a lead player in East Africa Confederation of Informal Sector Organizations said the

handbook will go a long way in creating awareness of the potential inherent in the sector, adding that the presence of leaders from different institutions involved in policy formulation, regulation and diverse support to the sector is clear manifestation of its key role in social and economic development of our nation.

“Suffice to sate that this handbook encompasses various subsectors in Kenya which has about 15 million players, with the ultimate goal targeting the entire East Africa region with over 45 million operators,” Kiilu said.

“This launch is yet another milestone propelling the SMEs as a key driver of the regional integration process as well as a major base for industrialization and entrepreneurship.”

Some of the sponsors of the Handbook Projest are Kenya Power, Kenya Bureau of Standards, MSE Authority, Mount Kenya University, Commission for University Education and Association of Microfinance Institutions among others.

Kenyan Ministry of Industry realized it needed to improve the success and growth rates of micro, small, and medium enterprises (MSMEs)

40 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

Business dinning etiquette

THE AFRICAN BUSINESS FORTUNE - LIFESTYLE

…where eating is also corporate

By Monicah Muema

Y

our image matters, especially when you are in a business environment. Whether you are going to a business lunch with your peers, recruiters, clients or partners, you need to make sure you behave appropriately. Yet many business folks do not adhere to apt dining etiquette.

In this edition we take a look at some of the eating habits in selected countries across the world.

For most of us, food is a large and much looked forward to aspect of the travelling experience. But when you are in a new country where you are not familiar with the dining practices, sharing a meal with the locals can be an intimidating affair. Each country has its own unique rules and methods

of eating and it is always helpful to familiarize yourself with these before you sit down for a meal.

In Thailand for instance, it is considered

rude to put food in your mouth using a fork.

Thai food is traditionally eaten with a spoon and a fork, though the fork is used to push food onto the spoon which is then eaten. If you are eating at a restaurant, never ask your server for chopsticks, because Thai’s take pride in looking after their guests’ every need and if the meal required chopsticks they would have been provided.

While dining in Mexico, remember to place your wrists on the edge of the table, as keeping your hands visible is deemed good dining etiquette. It is also considered rude to leave the table immediately after you have eaten and is advised to wait until a certain amount of time has passed. If you wish to leave the table to use the washroom, or take a phone call, it will be polite to wait till later.

When dining in China, you are expected to leave a bit of food on your plate at the end of your meal. Leaving an empty plate signifies that you were not fed enough and you are still hungry.

Also, never stick your chopsticks upright into a bowl of rice as that is only done during ceremonial meal offerings to departed souls. Also, when eating at a restaurant do not tip, as restaurants in China have a no tipping policy.

Contrary to the West, where belching after a meal is considered rude, in Egypt burping loudly after a meal is considered good dining etiquette and signifies your appreciation of the

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 41

THE AFRICAN BUSINESS FORTUNE - LIFESTYLE food you have just eaten. In fact burping is often considered the highest compliment a guest can pay the host on the food prepared by them! Make sure not to add extra salt to your food, as Egyptians consider that unnecessary. Taking second helpings is also considered a sincere compliment and will make your host very happy.

In Chile, touching food with your hands is considered bad manners. All food items are eaten using cutlery- even food like pizza, fries and burgers.

Also, make sure you finish all the food on your plate as this is considered polite. Once you have finished your meal, make sure you place your knife and fork to the right side of the plate. Another thing to keep in mind is that water is not automatically served at the table; you will need to ask for water if you want some. It is also considered polite to taste everything you are served and compliment the host on the food.

When dining in South Korea, make sure you begin eating only when the eldest at the table has began eating. Respect for elders runs very deep in Korean culture. Remember never to rush through your meal and eat at the same pace as everyone else at the table, especially the elders, as this is considered polite and respectful.

In the Middle East, guests are honored with the prime choice of meat, head, and eyes of an animal.

You are only allowed to use your right hand to eat.

When you are finished eating, leave some food on your plate, otherwise it will be refilled immediately. It will be considered rude when you prevent the host from feeding you more. While in Turkey, do not ask the price of items when you are ordering.

Strange as it may sound, in Japan, it is perfectly acceptable to loudly slurp your noodles while you are eating. The Japanese believe that slurping when eating noodles and soup, is the best way of displaying your appreciation of the food and the person who has cooked it. It is believed that slurping improves the flavor of the dish. You may also drink directly from the soup bowl, as spoons are practically unheard of in Japanese restaurants.

Something to remember for interviewees, employers may want to see you in a more social situation to see how you conduct yourself, particularly if the job for which you are interviewing requires a certain standard of conduct with clients and superiors. You could be critically scrutinized on your table manners and conduct.

Proper dinning etiquette is an important business tool, and when you are trained in the art of fine dining, you will exude confidence and class. Now as you venture into the different cultures around the world, consider yourself armed with some dinning etiquette. Bon Appétit!

42 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

Sky wars hot up as Fastjet makes maiden flight on Nairobi Tanzania route

By Steve Umidha

L

ow-cost airline fastjet finally made its much awaited maiden flight from Nairobi to Dar es Salaam and Kilimanjaro route Monday, in a move set to upset other carriers plying the same route.

A319 jet aircraft with a seating capacity of 156 passengers.

The airline which has pan-African network already operates internationally between Dar es Salaam and Johannesburg in, Lusaka in Zambia, Entebbe in fastjet Tanzania began operating a Uganda, Harare in Zimbabwe and Lilondaily flight yesterday between Dar gwe in Malawi as well as Kilimanjaro to es Salaam and Nairobi and between Entebbe route and domestic flights.

Kilimanjaro and Nairobi, with further flights between Zanzibar and Nairobi The maiden flight comes in the wake of and Dar es Salaam and Mombasa also the anticipated approval of fastjet Kenya, expected to be added to the network a separate company within the fastjet group to set up in the country. later this year.

The carrier’s airfares and affordable The company announced in October last tickets are expected to give fastjet a year that it had been granted an air sercompetitive edge over its rivals. vice licence (ASL) by the Kenya Civil Aviation Authority (KCAA), with the granting One way fares ranges from between of the ASL clearing the way for fastjet Ke$50 (Sh5, 100) to $80 (Sh8, 160) on nya to begin the application process for the two new routes, cheaper com- an Air Operator Certificate (AOC) which, pared to what other airlines like Ke- upon completed will allow the airline to nya Airways price on the same route. operate domestic flights locally.

Fares exclude government taxes.

As has been the case with other routes A fare comparison shows Kenya Air- that fastjet has launched, we expect ways prices today (departure on many of our passengers on our new January12) are about Sh 16,244 on Kenya flights to be first time flyers who Nairobi- Dar route while Precision would otherwise not have been able to Air which is 41 percent owned by KQ afford to travel by air,” noted Kibati. is charging Sh 18,427 non-stop one way on the similar route.

“Affordable air travel is critical to the growth of economies across Africa beFastjet’s relatively low-priced tickets cause of the positive impact that loware expected trigger fierce compe- cost air travel can have on the lives of tition in the industry which will in their citizens and the general economy,” the long run force other airlines like he says.

Rwandair, KQ and Precision among others operating direct flights be- “We are very grateful to the transportween the two cities to review their tation ministries and the civil aviation prices for fear of losing its customers authorities in both Kenya and Tanzania to the rival airline. for working together to make it possible for fastjet to realize our vision of grow“The travelling public pay prohibi- ing the number of consumers who can tively high fares for regional air trav- access the convenience of affordable air el, as the lack of competition on many travel,” concluded Kibati. routes keeps prices artificially high, Available for purchase on these new making air travel beyond the reach of routes will be fastjet’s luggage upgrade most,” said Jimmy Kibati, fastjet Gen- option, ‘Freighty’, that allows passengers eral Manager for East Africa during to transport up to 80kg of checked-in the launch. bags for US$80.

Return flights from Nairobi’s Jomo Kenyatta International Airport to Dar The Freighty luggage option in particular es Salaam’s Julius Nyerere Interna- is expected to be popular with traders tional Airport and Kilimanjaro Inter- flying with fastjet to purchase wholesale national Airport will initially operate produce to transport back to their home daily using fastjet’s modern Airbus markets to sell.

THE AFRICAN BUSINESS FORTUNE - MOTOR

Car dealers brace for sluggish growth Industry players also predict the two factors among others may hamper the industry’s growth which may see a slow growth in unit sales.

The market grew by 15 percent with total unit sales of 19, 966 vehicles sold last year.

GMEA which accounts for the largest share in trucks and pick-ups business grew by 33 percent, Japanese car maker Toyota Kenya led in saloon car segment while Simba Colt Motors registered a growth of 15.4 percent and targets to grow by 10 percent this year.

December auto sales soar to15pc in record year

By Steve Umidha

A

utomakers in the country are bracing for a year of single-digit growth, weighed down by the rollout of a new tax regime and high lending rates – painting a gloomy outlook in the auto industry that grew by15 percent last year.

Under the new taxation arrangement, imported used cars or mitumba vehicles will be charged import duty, excise duty and value added tax payable cumulatively in that order with the import duty charged at 25 percent, VAT at 16 percent while excise duty will be based on the age of the car – which has been capped at eight years in the new excise duty law.

Executives of domestic and foreign-based carmakers now say the high taxation is largely prohibitive to the sector’s growth since all vehicles under the Act has not spared locally assembled cars whose prices are bound to rise.

“Ultimately local vehicle assemblers will begin to feel the pressure from the new tax system, coupled with high interest rates especially in our EAC markets where the situation is even dire where we have witnessed a dip in our revenues,” said General Motors East Africa managing director Rita Kavashe – who projects the industry will grow at a flat-rate figure.

Ms Kavashe said yesterday in an exclu-

Rita Kavashe, GMEA Boss

sive interview that the new regime goes against the spirit of industrialization given that its effects will see an increase in prices of locally assembled vehicles, revealing that the assembler in partnership with other stakeholders have begun conversation with the ministry of Industrialization and the National Treasury to seek clarification of the tax law with the outcomes of the talks expected to ease tension and panic in the industry.

Dinesh Kotecha, the executive director of Simba Colt Motors in a separate interview however expressed a positive growth in the sector this year but is skeptical about 2017 – the electioneering year he says will affect vehicle sales.

“We were very positive and expected the industry to grow before the excise duty; we however still expect the industry to grow but its enactment into law means the prices of cars is going to be much more expensive and the recent we believe is going to affect the local SME-class making new cars more expensive,” he said, adding that despite the excise duty, the growth will be realized in the industry even though it will be moderate.

Mr. Dinesh says the ongoing infrastructural projects across the country will likely carry the momentum.

Automakers posted a solid 15 percent sales growth in December, sealing 2015 as one of the biggest sales year for the industry.

Sales of light commercial trucks and pickups helped push new car sales to 19,966 units for the whole year, Chairman of Kenya Motor Industry Association (KMI) Rita Kavashe said last week.

“The industry grew by 15 percent last year, a good performance in the industry for most car makers. Looking forward this year, the auto industry especially for local vehicle assemblers will begin to feel the pressure from the new tax system,” said Ms. Kavashe predicting a flat-rate figure

General Motors East Africa (GMEA) recorded the highest growth of 33percent with total sales of 6,479 units against Toyota’s 3,553 units sold during the period under review. GMEA’s Isuzu brands once again outshone Toyota’s Hino brands for the third straight year.

Mitsubishi sold 3,153 units against Tata brands with1,210 total number of vehicle sold in that class.

The luxury car segment which is largely dominated by second-hand imports, accounted for 906 of the units sold during the period, consisting of Mercedes (598 units), Jaguar (2units), Jaguaunits), Land Rover (67units) and Land Rover-RMA which sold 217 vehicles.

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 43

THE AFRICAN BUSINESS FORTUNE - HEALTH

Dr. Cathy Mwangi the Chief executive of M-Health Kenya

Mobile App opens new dawn for medical sector

By Brian Tirok

T

he emergence mobile applications is fast opening up doors of opportunities for corporates, businesses and now medics are the nascent group of professionals that is swiftly joining the craze in the uptake and adoption of mobile apps in a bid to improve service delivery.

If you are unable to physically visit your doctor or a clinic, make use of your mobile handset, is the message medical practitioners are sending out to their customer- patients.

Companies and app developers are to-

day coming up with new technologies to help achieve that dream and health care is now accessible at your finger-tips through mobile health services.

Available figures from International Telecommunication Union (ITU), there are now over 5 billion wireless subscribers; over 70 per cent of them reside in low- and middle income countries.

The GSM Association reports commercial wireless signals cover over 85 per cent of the world’s population, extending far beyond the reach of the electrical grid.

44 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

Lack of communication among health-care providers in Kenya tends to be extremely frustrating especially to patients and caregivers, that’s a gap Mhealth Technologies seeks to breach.

Mhealth therefore seeking to bridge the gap in communication among other doctor to patient and is set to provide health services to the reach of the public in new opportunities for the integration of mobile technologies for health into existing eHealth services.

Mobile health specialists should adopt a “learning ecosystem” approach that would involve constantly evaluating outcomes and incorporating discoveries into mHealth proj-

THE AFRICAN BUSINESS FORTUNE - EDUCATION created new mobile innovations in an effort to improve patient care efforts, cut costs and streamline communication, mhealth have worked closely with them to initiate such projects,” said Ms. Mwangi in an interview.

By working closely with the government and private organizations Mhealth Kenya is developing mobile applications for the health sector to help improve quality of care in health service provision, some of those initiatives and tools that have been adopted by Mhealth include text for life, Mpep system, KEMSA E-Mobile and .

Dr. Cathy sees significant potential from such efforts, pointing to the fact that over 50 per cent of the Kenyan population is now connected to a mobile phone, suggesting that the population is ready to go mobile with health care, as well.

“Mhealth cut the costs of providing healthcare, it maintains and improve the quality of care, reaches patients in even the most remote locations, and also unburdens the healthcare systems by relegating part of the care to mobile communications. Some of the apps are still under development and are yet to be launched.

ects.

Cathy Mwangi the chief executive of MHealth Kenya has been championing for mHealth in the country to work with mobile solution companies for quality healthcare service delivery in Kenya.

Through the help of Centers for Disease Control and Prevention (CDC) foundation which fast-tracked and initiated the project that saw MHealth Kenya becomes an independent organization right from CDC Mhealth Kenya to a fully-fledged Mhealth, with the main core function to oversee and manage mobile technology projects in the health sector.

“CDC foundation has been of a greater boost in initializing the project, we received a grant from them back in 2013, and this has greatly helped penetrate Mhealth in the country, last year alone several mobile service providers and individuals have

“Mhealth cuts the cost of providing healthcare, it maintains and improve the quality of care, reaches patients in even the most remote locations, and also unburdens the healthcare systems by relegating part of the care to mobile communications.”

M-health Kenya’s main core function is to oversee and manage mobile technology projects in the health sector, the organization has evolved from CDC foundation Mhealth Kenya to a now a fullfledged organization.

“Mhealth Kenya came about as a beneficiary of CDC foundation after it won a grant back in 2013 to implement mobile technology, mHealth basically develop mobile apps and also work hand in hand with partners who develop mobile applications so as to synergies technology to be used within the

ministry of public health system.

“Several mobile service providers and individuals who have created new mobile innovations in an effort to improve patient and health care efforts we have worked closely with them to initiate such projects. Mhealth in this regard helps to improve access and quality while at the same time provides dramatic innovation and cost reduction opportunities.”

The firm has partnered with government and the private institutions such as Safaricom, KEMSA and other organizations. The pacts have further streamlined the sector leading to reduced medical bills as well as improved quality care in health service. Some of those initiatives and tools that have been adopted

by Mhealth include MPEP system, Text for Life and KEMSA E-Mobile. mPEP

mPEP (mobile Post Exposure Prophylaxis) system is an initiative launched in Kenya in 2013 whose goal is to reduce risks for health workers of contracting infectious diseases such as HIV through an occupational exposure to the virus.

Using the mPEP system, follow-up is carried out largely through an automated phone system which sends text messages to potentially infected caregivers, alerting them to upcoming appointments and reminding them to take their medications.

“The mPEP initiative is just one in a series of technology-based efforts mHealth is using to reshape public health in Kenya, it’s an interactive system that tracks when you should go for your tests, and when you should pick up a kit unlike the previous process of recording in manual.” adds Mwangi.

mPEP on its 1st phase roll out it has covered around 204 health facilities in the country.

Text for life

Another application initiated by Mhealth is the text for life system an sms based platform that allows blood donors to communicate and also recruit themselves within the system, Ms. Mwangi expounds on the initiative behind it and how it has filled the gap in health sector. Launched in 2012, the Text for Life initiative is helping to tap into a blood donor base in Kenya, a country where donating blood is not a common practice.

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 45

THE AFRICAN BUSINESS FORTUNE - HEALTH “While all donated blood is screened for infectious diseases like HIV, syphilis, and hepatitis A and B, For years blood donors wouldn’t know where to collect their blood sample and also those donating blood are typically not notified if their blood does test positive. This is a gap that we identified in the current blood donation system.

“Addressing that need, text for Life uses text messages to notify all blood donors, where to see a health professional for their results, counseling and also medication, the system also alerts blood donors to needs that arise, either through repeated shortages or when a severe emergency crisis occurs.”

Ms Mwangi says that the service has so far recruited 100,000 people on the system, and they oversee the number growing.

The system allows you to text your county to a short code and you immediately self-recruit yourself, for blood donation, you will then get messages to come and donate at a strategic lo-

cation thereafter you will receive results after donation.

Kemsa E-mobile Kemsa e-mobile is a service that tracks medical commodities like medicine right from the time of order to delivery, the technology behind KEMSA E-Mobile enables public health facilities to order medical supplies directly from Kenya Medical Supplies Authority (KEMSA) through mobile phones, simplifying the ordering process and enabling a more efficient and effective distribution of essential medical supplies across the country.

Barriers

“Having worked with the various partners priorities are not always aligned, scope and project timeline usually contradict, plus the need to develop applications that needs to be integrated with other applications is not easy and also getting technical individuals to integrate poses yet another challenge” says

46 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

Mwangi

She indicated that other applications are still under development and they are yet to be launched soon, Mhealth has been interacting with health care workers in various medical institutions to get more recommendations on how to further Mhealth technology by establishing the challenges and constantly evaluating outcomes and incorporating discoveries.

“We hope to grow Mhealth Kenya to where we don’t necessarily have to depend too much on donor money, we want to connect more and farm up partners to increase our capacity, the beauty about Mhealth is that the resources is within the country, we want to be good and credible and be a big part on what happens on e-health in Kenya.”

Dr. Cathy Mwangi scooped the 2014 ICT Woman of the Year Award for embracing and supporting ICT in Mobile Health initiatives besides that mHealth Kenya also received an Award for the best use of ICT in the Health sector, during the 2014 ICT Value Awards by Information Communication Technology Association of Kenya (ICTAK).

THE AFRICAN BUSINESS FORTUNE - LIFESTYLE

You want to live longer? Go Nuts!

A fresh study has found that easting nuts daily can significantly reduce risk of dying from chronic diseases.

By Jacob Oginga

W

hen you hear the word ‘nuts’ mentioned, two things quickly come to mind: One is an informal or slang term meaning insane, strange, eccentric or stupid, and the other being a hard-shelled seed consisting of an edible kernel. Just to make things clear, going nuts in this case does not imply becoming insane.

It is about eating the hard-shelled seed; every day. But why are nuts so special, all of a sudden?

A new study has found that eating nuts every day can reduce the risk of dying from chronic diseases, significantly.

These include not only a reduced risk of mortality from heart disease, which has been the most-studied benefit of nuts, but also cancer, stroke, respiratory disease, and brain diseases. For ‘nut eaters’, it must be great news, though even those who do not ordinarily love nuts could soon develop more appetite for nuts after reading this article.

However, too much of it will be counterproductive, the researchers warn.

There is an upper limit in the study, above which there is no further benefit from eating nuts. While peanut butter didn’t offer any benefit, sadly, peanuts did, which suggests that although they’re not technically nuts - they’re le-

gumes; they do have a right to continue masquerading as nuts.

The researchers looked at data from over 120,000 people who have been taking part in the Cohort Study since 1986. They tracked the participants’ dietary habits and health outcomes over a period of 10 years. Included in the analysis were tree nuts, peanuts, and peanut butter. Though peanuts are legumes, they share many nutritional properties of nuts, including monounsaturated and polyunsaturated fatty acids, vitamins, antioxidants, and fiber, so are often included in studies like this one.

It turned out that people who regularly ate nuts had a reduced risk of death from all of the causes included in the analysis – about 23% reduce risk, compared to people who didn’t eat nuts.

Though most studies in the past have been interested in the links between nuts and cardiovascular disease, the current study found the benefit also applied to death from other diseases including cancer, stroke, diabetes, respiratory, and neurodegenerative diseases.

The reduction in risk of developing neurodegenerative disease like Alzheimer’s

was robust.

“It was remarkable that substantially lower mortality was already observed at consumption levels of 15 grams of nuts or peanuts on average per day (half a handful),” says Professor Piet van den Brandt, author of the study.

Unfortunately, peanut butter didn’t have the same protective effects as nuts proper, possibly because it sometimes includes added oils, including trans fats, salts, and sugars. But the good news is that peanuts did.

It’s also not the first study to suggest impressive health benefits linked not only to nuts, but to peanuts. In March, a JAMA Internal Medicine study found that people who ate nuts, including just peanuts, had a lower risk of death from heart disease and overall mortality. This, together with the current study, suggests that it’s not necessarily the most expensive varieties of nuts that confer the benefits. In the current study, peanut butter didn’t seem to offer a benefit.

According to study author, about half a handful of nuts was the effective dose; more than that didn’t seem to reduce mortality any further. That’s bad news for those who may have a hard time stopping at half a handful. As for those with normal levels of self-restraint, the study results should be received with two arms.

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 47

THE AFRICAN BUSINESS FORTUNE - WOMEN IN BUSINESS

Meet Winnie Kamuya, the woman entrepreneur behind Personal Assistants (PA’s) impetus

By Steve Umidha

Winnie Kamuya

W

ininie Kamuya is the wellrespected and thoughtful founder and Executive Director of International Renaissance Centre (IRC), a leading management development institution involved in training and convening of conferences with the aim of bringing together managerial professionals to learn from each other.

She blushes when she talks about herself during our conversation, and speaks softly as she introduces her company.

She is a graceful and quiet woman whose appearance is understated as her personality.

“My leadership style is inspirational, close and loving. I enjoy spending time with people, and I care deeply about them and their efforts. At IRC we are a big family, passionate for what we do,” she says.

Since its inception, Winnie says, IRC has trained and awarded a number of Personal Assistants (PA’s) otherwise known today as Office Managers and the firm has helped transform lives of these individuals by instilling confidence and self-belief in realizing the incredible contribution they make in an organisation.

“These are the most motivated individuals who are overworked, underpaid, untrained- people who previously had only typing skills and office practice schooling while some lack those basics and I felt this group of people were being ignored yet they are doing a lot of work behind the scene, I thought someone needed to appreciate their input and that’s why we formed the company to train them and came up with PAYA Award,” says Winnie who spent most of her adult-

48 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

life in the Kingdom of Swaziland where the idea was first pioneered.

Personal Assistants of the Year

Awards (PAYA) is an extraordinary honour, one that seeks to inspire and inculcate talents of executive assistants that are nominated by their bosses who upon their recommendation look at among other things in-born gifts such as communication skills, leadership qualities and other talents.

“As time went by, I realized that this ancestral tradition had to become formally acknowledged, we therefore embarked on demystifying myths and perception that PA’s were less informed individuals. These people are the most knowledgeable folks in the office who actually do everything in the absence of CEO’s and company managers,” she says.

In 2007, with a few resources on hand, she made the most momentum decision, to start

THE AFRICAN BUSINESS FORTUNE - WOMEN IN BUSINESS IRC - a family business she co-owns with her husband. They took a leap of faith that their then- two-person team could bring a very successful training business based on the combination of passion and business acumen, a step she says gave a new leaf of life to her own entrepreneurial instinct.

International Renaissance Centre is a business enterprise which offers short term training courses and seminars targeting both private and public sectors including Finance and Banking, Agriculture,

IT and Health sectors among others which Ms Kamuya reckons has motivated and transformed lives of PA’s across the continent where the company has operations.

The Award ceremony is rotationally held in different nations including South Arica, Tanzania, Lesotho, Mozambique and Uganda among other counties, upon which the awardees are issued with certificates, $1,500 and an award that circulates in the members’ countries.

Winnie Kamuya

She admits to having been brought up from ‘a very humble family,’ one she believes played a great role in shaping up her destiny which prompted the desire to make individuals comprehend their hidden talents.

“I was brought up in a relatively modest family and my father was an accountant and my mother was a housewife. My experience was out of the ordinary for any conventional aspiring woman entrepreneur in a traditional environment, but I was determined to go on.

“Growing up I never used to believe in myself, I think I was the weakest of all my siblings and my dad knew about my potential few years before he passed on- I miss him,” says the trained secondary teacher, who confesses to having had no interest in the profession.

Winnie pursued Bachelors in Education just to please her dad, and reveals she was too scared of failing in it, “I didn’t see myself as a teacher but somehow my dad managed to

convince me that with the course

I was guaranteed a job,” she says.

She has rose to prominence as a stirring business icon in IRC by sheer dint of her commitment, her goals and the craving to inspire women business enthusiasts and her effective management style that drove her organisation towards great success.

“My job has exposed me and has seen me travel the world and the motivation I get is when my trained candidates come back years later to say, thank you for changing my life, not knowing that all I did was to expose their hidden talents

“

My leadership style is inspirational, close and loving.

I enjoy spending time with people, and I care deeply about them and their efforts.

At IRC we are a big family, passionate for what we do

”

Winnie Kamuya

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 49

THE AFRICAN BUSINESS FORTUNE - LEISURE

Discover the Pearl of Tr

By Monicah Muema

Magnificently perched on a breathtaking coral reef overlooking the Indian Ocean and the Travellers Beach Resort is paradise found.

Featuring sugar-sand beaches, glistening waters and world-class attractions Travellers Beach Hotel is nestled in Kenya’s most colorful destinations. The Travellers Beach Hotel and Club is a large value resort right in the heart of Bamburi Beach, on Mombasa’s popular north coast.

The hotel is only 14 miles from Moi International Airport, and it is not far from Bamburi to nearby beaches including Nyali and Shanzu. For your beach vacation to Mombasa, you may choose between staying on an all-inclusive or half board (breakfast and dinner) meal plan option.

There are 288 rooms at the hotel with three room types – Standard Garden View, Superior Sea View and Suite. Amenities in all rooms include a mini-bar, en-suite bathroom with a bathtub and showerhead, hairdryer, air-conditioning LCD TV, tea and coffee-making facilities and a balcony or patio.

There are also safety deposit boxes where you may store valuables.

Suites also have a separate living room area. Hotel services include everything you would expect of a large resort with minimal personalization.

During your seaside stay at Travellers, you may make use of a 24-hour room service, business secretarial services, Wi-Fi, laundry, coffee shop and salon. Facilities include tennis courts, squash courts, outdoor pools and smaller kids’ pool.

Travellers Beach Hotel and Club offers numerous activities and accessible island trips to enjoy during your beach tour in Kenya. If you love to be on the water then jet-skiing, speed boating and deep sea fishing are all available.

The hotel can arrange day trips to sightseeing attractions, including the 16th century Fort Jesus and the

old town on Mombasa Island. Sealife enthusiasts will enjoy snorkeling or scuba diving excursions to Mombasa Marine Park, where you can appreciate seeing the coral gardens amidst a myriad of other under-life.

Located just few steps away from your room is the Travellers Beach Hotel’s full-service, on-site spa.

Here you get pampered with a signature Citrus-C manicure and pedicure. You can also rejuvenate your skin with a Mango Papaya Salt Glow; or indulge yourself with a four-hour body renewal package.

Combining a full-service spa with the laid-back coastal lifestyle, you will find yourself returning home fully relaxed in mind, body and spirit.

To complement their spa, Travellers Beach Hotel offers an on-site fitness center. Designed to help you stay in shape while you indulge the senses, our fitness center features free weights and exercise equipment, such as bicycles, treadmills and elliptical machines. More rigorous activities are also offered that is on-island exercise like bike riding, mountain biking, horseback riding or ocean activities such as parasailing, snorkeling and scuba diving.

You may choose between several dining options when you stay at Travellers. Shibe and Safina restaurants are more than adequate and serve authentic Swahili cuisine (a must-try during coastal trips in East Africa).

Both restaurants provide vegetarian options. Apart from a la carte and themed buffet options at the Shibe and Safina, there are three bars. The Kisima Bar and Lounge is an atmospheric venue with wooden beams and low-hanging lanterns, while the Pwani Coffee Bar is a wooden deck overlooking the beach. In the middle of the hotel’s largest pool stands the Bahari Bar,

50 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

offering cool refreshments.

If you need non-frill accommodation for your Kenya beach holiday, Travellers Beach Hotel and Club provides comfortable lodging with excellent value for money. Whether dining indoors or out, you will see the twinkling lights of the slow-moving cruise ships and the sailboats and yachts as they enter and leave Kenyan coastline.

THE AFRICAN BUSINESS FORTUNE - LEISURE

ravellers Beach Resort

class museums and trendy boutiques and salons, and when evening falls, indulge in the sizzling restaurants and the nightclub.

Restore your body and spirit in the quiet shade of Kenya’s coastline. Overlooking a pristine ribbon of powdery sand, Travellers showcases an exclusive location among coastal hotels. Begin your day in glorious fashion by watching the sun glide above the Indian Ocean. Indulge in soothing naps on the beach while waves gently lap the sand.

Or enjoy an early morning stroll along the coastline then retire to your restful guest room or suite. Moments like these are what draw visitors to the stunning Travellers beachfront.

Stay at this stunning hotel for sophisticated features and superb service designed to take your event to the next level. With property-wide high-speed Internet access and a full-service business center, this expansive conference center acts as your coastal-flavored satellite office. Allow our expert meeting planners and caterers to provide peace of mind stemming from optimum productivity.

Whether traveling for business or pleasure, these accommodations exude all of the comforts of home with thoughtful features. Take pleasure in our well-appointed environment and enjoy abundant space amid tastefully decorated surroundings. The height of convenience can be found in this alluring hotel You will be pampered perfectly with ocean views, white sand beach and amenities galore. You will find adventure, serenity, and your life’s dreams come true at this exotic, tropical island resort.

Enjoy hanging out at Bamburi Beach on chairs and under umbrellas supplied free by the Resort. Here is the coastal dream of breathtaking shades of ocean blue and turquoise. With beachside drinks and meal services from Beau Beau’s at your beck and call, you will have no reason to ever leave.

Drift to sleep under the warm sunshine poolside or on the beach. If you can bear to leave our oceanfront, spend a day exploring world-

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 51

THE AFRICAN BUSINESS FORTUNE - TELECOMMUNICATION

Equitel battles Safaricom, Airtel for new subscribers

By Dan Mganda

S

afaricom and Airtel lost 446,000 mobile subscribers to Orange Kenya and Equitel even as latest statistics showed they added new customers to their network between July and September 2015.

The battle has shifted to new subscribers, according to industry regulator Communications Authority of Kenya (CA), released last month.

Safaricom lost 425,000 subscribers to 25.1 million over the quarter, while Airtel lost 21,600 from 7.2 million users.

Consequently Safaricom shed 1.7 percent of its overall market share from 67 percent as Airtel lost o.3 percent to claim 19.1 percent in overall subscription numbers.

Equitel gained a huge number of subscribers to grow its base by 24.3 percent in three months, recording 1,085,869 in total subscriptions.

Orange Kenya which is undergoing re-

structuring process after being sold to a private equity investor added 400,000 to its fold to record a total subscriber base of 4.4 million.

Orange and Equitel now control 11.9 percent and 2.9 percent of overall market share respectively.

The quarterly report however shows during the period under review, net mobile subscriptions grew by 32.9 percent to 1.7 million highlighting operators were battling for new subscribers.

Compared to last year new subscription numbers grew by 300-fold.

This saw Safaricom gain 3.8 percent new subscriptions as Airtel added 400,000 new subscribers.

CA showed the mobile market in the country maintained an upward trend to recording an increase of 4.7 percent in the number of mobile subscriptions to stand at 37.8 mil-

52 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

Equitel Launch in Nairobi

lion up from 36.1 million subscriptions posted last quarter.

“Subsequently, mobile penetration grew from 83.9 percent recorded last quarter to 88.1 percent during the period under review,” said CA. Pre-paid subscriptions continued to dominate the mobile telephony sector with the quarter in review recording 36.8 million to account for 97.3 percent of the total subscriptions.

Local mobile traffic stood at 10.8 billion minutes up from 9.2 billion minutes posted during the previous quarter, representing growth of 18.2 percent.

“This was as a result of special offers and promotions carried out by the operators during the quarter under review,” said CA in its fourth quarter report released on 23rd December last year.

On net traffic contributed 88.9 percent of the total traffic to post 9.6 billion up from 7.9 billion minutes posted during the previous quarter, according to the report.

Benefits of being our member Outpatient 1. General Consultation 2. Diagnostics and treatment of common ailments 3. Prescribed laboratory and X-ray investigation services 4. Prescribed drugs administration and dispensing 5. Management of chronic ailments (HIV/AIDS, Diabetes, Asthma, hypertension, Cancer) 6. Treatment of sexually transmitted diseases 7. Minor surgical services 8. Family planning/midwifery/ante/post-natal services 9. Referral for specialized services 10. Renal dialysis

Unique features of N.H.I.F Inpatient Cover 1. Family based cover 2. No upper age limit 3. No medical examinations required /pre-existing conditions 4. Affordable, Accessible, Reliable and Sustainable cover 5. No exclusions apart from cosmetic procedures 6. Over 650 accredited health facilities 7. Widespread branch network for your convenience 8. No deposits required on admission Our comprehensive Inpatient package covers bed , medication, doctorâ&#x20AC;&#x2122;s fee, surgical and other medical procedures in general.

THE AFRICAN BUSINESS FORTUNE - EDUCATION

Kenya’s Prof. Ngugu Wa Thiong’o is one of Africa’s brains working in the US

How Africa is eliminating brain drain Stakeholders strategizes to reverse brain drain to brain gain

By O. Bernard

B

rain drain - a situation in which educated or professional people leave a particular place or profession and move to another offering better pay or living conditions - has been a challenge to the economies of many developing countries and a perennial concern for their governments.

A report by the International Organisation for Migration (IOM) says Africa has been losing 20,000 professionals annually to brain drain since 1990 and that over 300,000 professionals live outside the continent.

“Between 1980 and 1991, Ethiopia lost 75 per cent of its skilled workforce and it now costs US$40,000 to train a doctor in Kenya and at least US$15,000 for a university student,” it reads.

This is a trend that calls for financial, institutional and societal costs. African countries get little return from their investment in higher education since too many graduates leave or fail to return home at the end of their studies.

Consequently, African institutions are increasingly dependent on foreign expertise.

“To fill the human resource gap created by brain drain, Africa employs up to 150,000 expatriate professionals at a cost of US$4 billion a year,’’ the report further says.

Moreover, the continuous outflow of skilled labour since 1990s has contributed to a widening gap in science and technology between Africa and other continents. There are now more African scientists and engineers in the US than in the entire continent.

54 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

On the other hand, The United Nations Development Programme (UNDP) confirms that the loss of medical doctors has been the most shocking. At least 60 per cent of doctors trained in Ghana during the 1980s have left the country.

There is no doubt about the rising competition by countries seeking to own the best minds and talents. Nigeria, for instance, accounts for at least 20 world class soccer players in foreign teams.

In light of these statistics, stakeholders are engaging strategies aimed at reversing the continent’s brain drain to brain gain.

Restoration moves In November 2004, the Association for Higher Education and Development (AHEAD) - a Diaspora group based in Canada, collaborated with its financier, the International Development Research Centre (IDRC), to organize an international stakeholder roundtable aimed at mobilizing the African Diaspora towards development ef-

THE AFRICAN BUSINESS FORTUNE - EDUCATION forts in Africa.

The roundtable, held in Canada, brought together key stakeholders including the International Organisation for Migration (IOM), Canadian government agencies, African missions, non-governmental organisations and Diaspora groups to come up with a solution to brain drain in Africa by mobilizing the African Diaspora.

Among other issues, the conference resolved that there was need to engage the African Diaspora through policy and resource commitments by key stakeholders such as international organisations, African governments and countries hosting them.

According to an official of AHEAD, one of the potential areas where the talents of the Diaspora could be channeled is through virtual linkages. These are independent, non-political, and non-profit networks promoting skill transfer and capacity-building.

“These networks mobilise skilled Diaspora members’ expertise for the development process in their countries of origin. The experts also contribute through these networks as visiting scholars by investing in companies and assisting in joint ventures between the hosts and sending countries,” he says.

The virtual networks are already yielding fruit in most African countries.

For instance, due to the inability by the South African government to lure back highly qualified citizens who have emigrated, the government and universities are attempting to stem the brain drain by using the skills of South Africans abroad through attracting replacement researchers and professionals from elsewhere.

gerians in the Diaspora. From this tour, the government sought to find a way through which expatriate skills could be tapped without physically relocating them.

The experts are tasked with, among other contributions, helping local graduates to study abroad, participating in training or research with South Africans, transferring technology, transmitting information and results, facilitating business contacts and initiating research and commercial projects.

So far, the two groups have contributed immensely to key sectors of the economy.

In 2014, the NNVS, in collaboration with IOM, and with funding from the European Union designed a programme to provide remuneration for education and health emigrant professionals willing to return to Nigeria on a short term basis.

To facilitate this, the South African government and key universities have set up a South African Network of Skills Abroad (SANSA) which calls on experts to make their skills available.

SANSA coordinator Henda Van Berg says: “There were some 3,000 people abroad now on the database. We are gaining on average 10 new members a day. Most are from Britain, Australia and the US.” And in Nigeria, then President Olusegun Obasanjo undertook a round-the-world tour and met millions of professional Ni-

Two organizations were formed - Nigerians in the Diaspora Organisation (NIDO), which incorporates the Nigerian government and Nigerian Diaspora in North America and Europe and whose aim has been to “ignite conscious participation by the Diaspora in Nigeria’s development” and the Nigerian National Volunteer Service (NNVS) established to “harness the services of Nigerian experts, both retirees and active agents at home and abroad for the development of the nation”.

To date, Diaspora remittances are recognized as a key contributor to the Nigerian economy. Last year, they amounted to US$21 billion, according to the Central Bank of Nigeria and the World Bank.

The African Diaspora involvement as key stakeholders in Africa’s development has since been operationalized by many African states.

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 55

THE AFRICAN BUSINESS FORTUNE - ADVERTORIAL

Community transparency key agenda for lobby group

By Amos Njau

R

aul Nassir has achieved more than his peers will ever dream of achieving in their entire being. At a tender age of 18 years Raul is today the Chief executive officer of a community based organization that seeks to empower the less fortunate.

Based in Buru Buru (Kenya), Young flame is barely one year old, and their mission is help street children and orphans by paying for their school fees while also accommodating the homeless.

Driven by desire to better the community welfare, Raul says nothing will stop him from achieving his dream. He is optimistic that through his foundation “Young Flames light,” will be impacted to the needy in the community especially street urchins and orphans.

“My desire to interact with everyone in the society started when I was a young boy, I was in class seven when I started volunteering in charity works and this prepared me future responsibilities. After knowing my future calling, I honed my skills with a great determination,” he opens up during an interview with this writer.

Raul is perturbed by the situation living conditions of Kenyans how many are living in abject poverty – a rotten society where majority have given up hope no longer care about their own future and those of their neighbors.

His form of approach to empowering the society is targeting peers particularly high school students to start sharing whatever little they have with their loved ones, without consideration their tribal backgrounds.

Having been born and raised in a Muslim based community, Raul says his upbringing taught him to accommodate everyone in the society, regardless of where they come from.

He is however worried that a lot of politics has become norm of the day and is derailing growth in most communities that still lag behind in terms of the development.

He questions the manner in which Kenyans are being divided through tribal lines and he believes local leaders are to blame for the vice, and wants the government to create agencies to monitor and track how community based organizations are spending funds entrusted to them 56 THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016

by donors.

“Government should create agencies to be looking on the manner by which NGO’s use money given to them by donors, most of these community based organizations don’t take the welfare of the less fortunate, they are there to enrich themselves,” he says.

He says youths across the country should take the lead and deliver the it from the jaws of selfish individuals, adding that a new dawn has come for

youths to shape their destiny without waiting to be fed by their relatives and parents.

“You can’t teach old dog new tricks, thus youths should make use of their youthful age rather than waiting to implement their dreams when they grow old,” he adds.

He says that everyone in the Society should ensure that, the level of transparency and integrity is enhanced to avoid loosening the morals that

THE AFRICAN BUSINESS FORTUNE - ADVERTORIAL guides Kenyans to their destiny.

“As the head of young flame organization am determined to ensure that, the society around where I live is healthy, children go to school, the estate is clean and the number of street children has reduced to zero as, we have started the process of rehabilitating street children while also accommodating them in children homes across the region,” said Raul.

Raul draws his greatest motivation and inspiration from his Father, the man he says played a huge role in in spotting the potential in him and inspired him in his quest to sharpen his dream.

In high school he reveals, his dad

helped him to fund various projects like school holiday workshops where he mentored most of his colleagues.

He adds that, his religion has also taught him virtue that holds his behaviors and enables him to accommodate everyone in the society.

“As a young Flame we are determined to extend our wings in every corner of the Country so that we can reach everyone who can need our help,” he adds.

He has further said that donors should also observe keenly on the manner by which their money is being used as some NGO’s operate for the purpose of making money and benefiting officials.

Raul is very optimistic that this year (2016), the lobby group will have benefited more than 2000 needy children in the country.

He has therefore urged members of the society to join hands in ensuring that the society that they live is well secure and by helping those in need instead of neglecting them.

“I never thought at one point I can lead a huge group, I was a shy boy but through mentorship from my dad and close friends, I am now the CEO of Young flames and am ready to mentor those that are in need,” Raul says.

He says government should forge a partnership with well-wishers’ to ensure that the country’s economy is growing.

Asked about commodities and services they offer to the community, Raul says that they provide Food stuffs, Textbooks’, Clothes and facilitate medical treatments to those street children that they accommodate in the children home.

He says that, children are also taught various skills like dancing and acrobat they use to entertain community a round instead of being idle.

Nassir adds that, Young Flames is looking for well wishers with common goals of transforming the society in various means like impacting knowledge to less fortunate in the Country.

“We are trying to transform the society by sensitizing the youths the dangers posed by taking hard drugs, we are also targeting street children in our core agenda and we are optimistic that through various workshops we will achieve our goals,” he said, further urging parents to be cautious when dealing with their children; he further requested them to be best friends to their children as this can help to reduce family fallout.

He adds that, children should not be given absolute freedom as this may later hurt them as they end up engaging to various exercises that are prohibited by the society.

“Parents should guide their children on the best way to spend their holidays and on how they can engage to various exercises that can generate income in future instead of letting them to be idle,” he concludes.

THE AFRICAN BUSINESS FORTUNE JAN - FEB 2016 57

AFFORDABLE! FREE #.2'-*#+1 FREE 20 %# * 1, * FREE

02--,/1 FREE ' '

From KSHs

15speed Mbps

9,999 30 GB traffic

(Vat incl) per month

+

KSHs. 25,000

Customer Service Provider 2013

, 1/2)5 $##) 1&# $/##",* ,$ ' 560 $ 01 /#)' )# /, " +" - !( %#0 4# /# %'3'+% 5,2 FREE equipment 4'1& FREE WiFi +" FREE unlimited broadband #14##+ * +" * #3#/5 " 5 -" 1# 5,2/ 0,!' ) *#"' ",4+), " +1' 3'/20 0,$14 /# 4 1!& *,3'#0 +" *2!& *2!& *,/# &#1&#/ 5,2 /# 1 4,/( ,/ -) 5 %, ' 5

Customer Service Provider 2012

,/ *,/# '+$,/* 1',+ !,+1 !1 20 '4 5 $/'! #+5 '*'1#" 1& ),,/ &# &'*12)) ,4#/ --#/ ')) , " --#/ ')) #)

* ') 0 )#0 (# '4 5 $/'! +#1 #/*0 +" !,+"'1',+0 --)5

! " ! 5)36)0&)4

Kenya Police

SACCO

United for Prosperity

ONLINE

New Member Registration

You can now register as a member of Kenya Police Sacco Ltd online by using your Safaricom Mobile Number TO REGISTER Send your ID. Number to 21333 You will receive a confirmation message showing the following:1. Your membership number 2. Pofosa account number 3. M-sacco pin

Eldoret Branch Kirem Plaza, 3 rd Floor Ronald Ngara Street Mombasa Branch Oriental Building Ground Floor Nkrumah Road

Sacco HeadKenya Office -Police Nairobi Kenya@Police Police Sacco SaccoPlaza, Ngara Road off Murangâ&#x20AC;&#x2122;a Road P.O. Box 51042 - 00200, Nairobi Pilot No.: 0709 825 000 Email: info@policesacco.com Website: www.policesacco.com

enya Police Sacco K Kenya Police Sacco @Police Sacco @Police Sacco

KENYA POLICE SACCO SOCIETY LTD: ISO 9001: 2008 CERTIFIED