iGrand Business Radio: Recent Episodes
iGrand Business Radio
According to statistics, 93% of all online interactions start on such engines. 81% of customers research things online before they buy them. 84% of today's customers think a website makes one's business more credible than companies that only have social media profiles. These statistics reveal what was the main theme of this webinar as Hasnain Noorani the Founder and Managing Director of Pride Group, taught how Kenyan business owners could expand to the African market.
Tapping into the African market calls for growth in businesses. The secret to this growth lies in understanding the buyer problem; where purchasers are too busy to get to shops and hence end up relying on the same sellers due to lack of knowledge. CV is the solution to the buyer problem, the acronym stands for Communication and Visibility. These two, according to Hasnain, are key ingredients for growing any business. Communication calls for meeting as many people as possible and having one's business card(s) during those conversations - networking. Visibility involves rigorous activities in social media pages - branding. A dynamic and very active website is also key to visibility. Bill Gates says "If your business is not on the internet, then your business will be out of business."
The pandemic provided a wake-up call to digitizing business i.e. digital methods of delivering products and services. Digitization reduces cost, automates business processes and reduces the reliance on manpower. Having an impact requires an online presence. No business in this era can successfully achieve optimum success without online sales. After all, how else will other business people in the African market get to know what one does? The challenge when it comes to visibility is that business owners have websites that are static and not updated, others lack the technical knowledge to operate the website, others find it time-consuming and expensive to maintain others are simply not connected to updated technology.
Differentiating between online existence and online presence is key. Online presence is what all business owners should aim at as it is the silent salesperson that deeply explains what one does. A good online presence is what attracts a valuable audience, not followers. Performing Search Engine Optimization~~s~~ (SEOs) too is helpful.
Although there are limited platforms for the African market to showcase various businesses online, Amazon, Alibaba Group and Airduka.com are examples of platforms that have utilized the e-commerce business revolution.
Esther W. Njaramba
The writer is a passionate Counselling Psychologist who works with individuals and groups to see to it that they lead satisfying and happy lives.|njarambaesther3@gmail.com
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Many might know of his works, but little about the person. We know of a certain permanent secretary in late President Mwai Kibaki’s government whose brain and work placed Kenya on the global map as a FinTech giant. While in government, he initiated the development of undersea cables into East Africa and later began the Kenya Open Data initiative. The man is a professor of entrepreneurship and associate professor at the school of business, University of Nairobi. He is Professor Bitange Ndemo.
In the Bible, great kings like David were supported by valiant men who were brave at war and courageous on the battlefield. In Prof. Ndemo, President Kibaki found a man of valour who helped greatly in creating an Empire in Kenya that many nations admire. Prof. Bitange Ndemo, unlike King David’s men of valour, didn’t support the president through spear or javelin. He instead applied his high intellectual gifting, rich professional network and understanding of evolutionary trends in business and ICT to run his portfolio as a permanent secretary.
Professor Ndemo is a corporate titan aside from his accomplishments in academia. He sits on the board of Safaricom PLC and in many other boards as an advisor. Some of the organizations that bank on Prof. Bitange Ndemo’s wealth of knowledge and expertise in business and ICT include UNCDF’s better than Cash Alliance, OECPD panel of experts on Artificial Intelligence and Blockchain, World Economic Forum Blockchain Council, UNESCO NEXTEXPLO Forum, Global Learning Council, Research ICT Africa and UN Global Pulse. Prof. Ndemo needs no introduction in many other companies, forums, councils and research classes as he is widely quoted, used as a point of reference or sought to advise without exactly being admitted to those boards.
The great professor is a widely published author and speaker on many forums across the world. He is a PhD holder in Industrial Economics from Sheffield University in the United Kingdom and holds a series of degrees in business administration, accounting and finance. Prof Bitange Ndemo is also a columnist on Business Daily and The Nation Newspapers. His footprint in global conferences, digital conferencing platforms, TEDx Talks, Engage Talks and University Lectures have created a huge impact on governments and the private sector. Prof. Ndemo has inspired change and transformation in Urban Planning, Financial Access through FinTech and the captainship of large corporations. The man has widely influenced policy making through his disruptive thinking, research and contributions ~~in~~ tocorporate sector dialogues.
Rick Okinda | okinda.p@igrandbp.com
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs.
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Kenya is a country that has been hard hit by a history of post-election violence most notably in 1992, 1997, and post-2007. This trend has caused a lot of investors to shun investing in the country during the electioneering seasons. The message of peace is being spread all over but one question still stands, what next after August 9th? A study conducted on the country’s economic data shows a trend in hyperinflation during elections. During such times, economic growth dwindles affecting the livelihoods of millions. Evidence of this observation is the inflation rates in the following pre-election times; 2012 inflation was at 9.38%, 2016 at 6.32%, 2021 at 6.11%, and currently the inflation rate is at 7.21%.
The heated political season is typically accompanied by a rapid slowdown in economic activities. Sectors that have traditionally suffered the most damage are those that heavily rely on government patronage. Agriculture, infrastructure, and the manufacturing industry are top in this list. On the other hand, the sectors that benefit the most are the sectors that are not highly dependent on political goodwill such as the service sector with an exception of banking. Kenya’s current high voltage politics has disrupted commercial activities leading to a reduction in revenues for many businesses. Additionally, with politicians pushing for water-tight regulations and higher taxes, it becomes harder for companies to operate legally and effectively. In some cases, this can lead to widespread corruption and dishonesty within business circles and criminal activity such as money laundering.
Political campaigns in Kenya are run on heavy financial budgets leading to the circulation of money from politicians to fund political activities. For instance, in the financial year 2014-2015, The National Alliance (TNA) Party received USD$866,679, the Orange Democratic Movement (ODM) Party USD$848,239, and the United Republican Party (URP) USD$273,688 based on their numbers in parliament. The presidential candidates can use up to 5 billion Kenyan shillings in political campaigns and in addition, they are not restricted from holding fundraisers to get more cash for the campaigns. This usually comes in at a time when there is an increased level of inflation and in my opinion, some of this money could be re-invested in creating job opportunities for the youth and unemployed. Nonetheless, one way to mitigate the effects of a heated political season is to diversify investments into sectors that are less polarized by politics.
Bungei Obadiah | obadiahbungei69@gmail.com
The writer is a student of Karatina University pursuing a Bachelor of Science in Nursing degree, an enthusiastic graphic designer, and a photographer. Intrigued by community education on health and wellness, gradual social transformation to improve the quality of life.
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Over the last five years, many sectors in Kenya have been adapting to a recent shift that has seen many large, medium and small entities change how they do business. Policy changes have made more youth interested in being entrepreneurs and business owners and this has caused a rapid rise in the number of youth-led businesses. It is this growing market that is ripe for the picking as far as Cooperatives are concerned.
This tech-savvy crop of entrepreneurs and business owners are looking for solutions that are readily available within the Cooperatives movement. They are open to saving and securing financing through Saccos and are also more than willing to join collaborative spaces and unions that address their collective issues. Yet, very few of thesenew target markets are part of the Cooperatives movement. Instead, they opt to look for financial services in banks and collective representation in business hubs. Why is this?
Well, the reason is simple! This demographic is attracted by who is most visible and the attention they give to utilizing art, style, and creativity in their brands. This is what most banks and serious corporations have been utilizing recently to get these customers. Almost every major bank and corporate entity has rebranded in the last five years and some have gone the extra mile to set up youthful entities for their businesses that deviate from the primary serious corporate feel to a more appealing trendy side.
So, what can Cooperatives do to become more visible and attractive to the youthful target audiences that we are seeing today? They have to master the art of Trendiness. Youthful trends are colourful, suave, vibrant and energetic. They are unapologetically fashionable and free, creating an aura of complexity and fun. Any Cooperative that speaks this language is bound to attract its fair share of this new market.
The entire Cooperatives sector has to revamp its image. Any entity in this sector has to change its brand image and outlook to one that is trusted by a younger demographic. To do this, Cooperatives have to lose those old boring branding elements and embrace a vibrant and youthful look that tells young people, “We see you and we hear you!”
Therefore, Cooperatives have to ensure they are visible and attractive brands first since their branding is the first point of contact they have with customers.
Jackson Macharia | jackson@digicreative.co.ke
The writer is a brand strategist and digital content creatorwho helps individuals and businesses thrive in today's modern marketsby enhancing their branding and marketing. Writing for Co-optkam Company Limited
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An eating disorder (ED) is a mental disorder defined by abnormal eating behaviours that negatively affect a person's physical or mental health. There are three main types that include anorexia nervosa, bulimia nervosa and binge eating. Other EDs include pica, rumination, avoidant/restrictive food intake disorders, and night eating syndrome. Having an ED and being on a diet is not the same thing, but frequent dieting can be a curtain-raiser in developing an eating disorder. EDs are often associated with preoccupations with food, weight or shape, eating anxiety or consequences of eating certain foods. Behaviours associated with eating disorders include restrictive eating, avoidance of certain foods, binge eating, purging by vomiting or laxative misuse or compulsive exercise. These behaviours are often driven in ways that resemble an addiction. Common risk factors include gastrointestinal disorders, a history of sexual abuse, and being a dancer or gymnast.
EDs are highly prevalent globally. They affect several million people at any given time, most often women between the ages of 12 and 35. Anorexia and bulimia occur nearly ten times more often in females than males. Research published in May 2019 on PubMed showed an increase in prevalence rates of eating disorders escalating from 3.5 % between 200-2006 to 7.8% for the 2018-2018 period. Many factors can influence the development of an eating disorder. These factors can be biological, psychological, and social. Individuals who are struggling with their identity and self-image can be at risk, as can those who have experienced trauma. EDs and mental illness are stigmatized hence some people with EDs are secretive or ashamed and often conceal them.
Assessing for an ED is simple. If the way you eat and think about food interferes with your life and keeps you from enjoying life and moving forward, you may be experiencing disordered eating. EDs impose severe health complications such as anxiety, depression, acid reflux, low blood pressure, organ failure, amenorrhea and infertility, and stroke on. Individual.Both anorexia and bulimia increase the risk of death. Recovery from an ED is guaranteed when professional help is sought. Seeking help soonest is paramount, as prolonged suffering may delay recovery from treatment. EDs are mostly diagnosed by a physician and help sought from a therapist for counselling, a registered dietitian on healthy eating strategies and healthy weight management, and sometimes taking medications (e.g., antidepressants). Recovery from EDs may take time (about 5 years), and therefore requires patience and consistency.
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In May 2022, iGrand Business Plans Limited launched Dira La Biashara App 1.0 as part of its commitment to democratize access to business support services. The App has so far been rated as user-friendly, navigable and with real solutions for anyone in business, working or aspiring to be either. In this month’s column, I would like to use this space to give credit to EinsBrand Digital. The agency that supports website, Application and Systems development at iGrand Business Plans Limited. EinsBrand is the agency behind the beautiful brand that iGrand is becoming. It is Gideon, the Creative Lead of EinsBrand who thought through the whole process of designing and developing the Dira La Biashara App.
Whether you have already started the entrepreneurship journey or are planning to start, the first thing you will want to do is to be recognized by a brand and to be found on digital media platforms. This requires a combination of skills to achieve winning results. You will want intelligence to be communicated in art and ideas to be visualized. First, you need a brand architecture that will help you conceptualize the brand you are about to build, or the website, system or application. Concept building is a work of art and the artist must be creative enough to help your brand stand out. Second, you need a designer who can visualize the concept in a drawing before the developer picks up the work of making your website or App. At EinsBrand, these skills are present in one team and they have a proven record of handling clients professionally and with a great understanding of branding and website needs of different categories of businesses.
iGrand Business Plans Limited has an existing working relationship with EinsBrand Digital to help customers implement their Social Media, App and Web presence strategies. This relationship thrives on the need to have marketing plans, web, App and systems plans built by iGrand Business Plans and implemented by EinsBrand Digital. EinsBrand Digital has previous and current customers from different industries and has successfully helped brands to grow from scratch to wide recognition. Save the contacts for EinsBrand Digital in your phone or mailing list for business correspondence, referrals or related queries. Reach the Creative Lead via gideon@einsbrand.digital or connect via social media platforms. EinsBrand is also available on WhatsApp business via +254 732 338 840.
Rick Okinda | okinda.p@igrandbp.com
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs.
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Kenya is known for a good number of things on the global map. The country’s tourism sector has enjoyed prominence thanks to white and sandy beaches on Kenya’s coastline, annual wildebeest migration across the Mara River, Snowcapped Mt. Kenya, hot springs and lakes of the Rift Valley, a sizable share of the World’s second-largest freshwater lake and host to humanity’s cradle land in Turkana. Lately, Kenya’s main export has shifted from Agricultural produce and tourist services to Labour. Various reports by the World Bank project Kenya as a leading economy in Africa by 2030 not for oil or precious stones but for its highly sought-for labour in the global market.
According to a CBK Survey published in December 2021, Diaspora remittances to Kenya have increased tenfold in the last 15 years hitting an all-time record of USD 3,718 million. This is more than 3% of Kenya’s GDP. Remittances flow into the country to majorly meet needs in food, healthcare, education and housing.Most Kenyans who live abroad left in pursuit of jobs and higher education. Other reasons for leaving include marriage and diplomatic duties. Most Kenyans living in Asia take up jobs demanding fewer skills while those in Europe and Oceania have to work longer to save and send money to the country.
In sending remittances, most people use formal channels and over 60% of those who send money to transact monthly at higher transaction charges that would be avoided through the creation of a more favourable platform. Such a platform needs to be as convenient to use as banks, money transfer companies and mobile operators but affordable as Hawalas and secure as Credit Unions. This is the intelligence being used by Suleiman Shahbal, owner of Gulf African Bank, to set up and run a diaspora Bank. Suleiman Shahbal and his support team are working around the clock to register Kenya’s first diaspora bank within the 3rd Quarter of 2022. Having successfully disrupted Kenya’s banking landscape with Islamic banking products and procedures through Gulf African Bank, Mr Shahbal is convinced that opportunities in diaspora banking are his’ to grab. To register a bank in Kenya, one needs a number of licenses and approval from regulators among them the Central Bank of Kenya, Capital Markets Authority and Competition Authority. He also needs to deposit a cash reserve with the Central Bank of not less than 5.25% of total domestic and foreign currency liabilities.
Rick Okinda | okinda.p@igrandbp.com
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs.
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The Constitution of Kenya creates a decentralized system of governance and administration. In order to exercise the decentralized powers and duties, county governments are authorized to raise their own revenue. Whereas the national government still collects a significant part of revenue, the Constitution and other laws have outlined the taxes, levies and fees that county governments can collect. Broadly speaking, county governments may impose entertainment taxes, property taxes and any other taxes they are authorized to impose. The taxes, levies, fees and charges target local residents and their businesses.
In the business context, the national government is in charge of functions such as the registration of business entities. On the other hand, county governments can issue and levy charges for licenses such as business permits. The amount of fees charged for a permit depends on the nature of the business, the size of its office and the number of employees.
County governments issue trade licenses for diverse economic activities including distribution services. Manufacturers and distributors are required to pay for distribution licenses in each county where they distribute, offload or supply goods and services.
In addition, county governments are empowered to collect cess fees, also referred to as infrastructure maintenance fees. This is a form of tax charged on fishing and agricultural products as well as extractives such as quarry products as they move across county borders. It is levied by the county from which the goods are produced and is collected at the source or during transportation of the products at designated roads. A transporter is required to produce evidence of paying cues in the county of origin. However, the transporter or trader has to pay market fees to access or sell the goods in the destination market. This is referred to as a market levy.
County governments are also authorized to charge fees on outdoor advertising. For instance, a county government can levy fees for the external branding of motor vehicles. The fees are charged on branded vehicles belonging to a business based in the county or that drive-in or through the county.
In enacting laws, counties must follow the Constitution and ensure that the taxes, fees and levies charged will not impact national economic policies and economic activities negatively. Moreover, where a fee is to be charged on a service, the law requires that the fee should not exceed the cost of providing such service.
Debbie Kwamboka Oseko (Guest author)/kwambokaoseko7@gmail.com
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Over the past three months, Kenyans have felt the heat of ever-increasing fuel prices. The prices have shot up on the account of the growing demand for oil as economies shake off the impact of the COVID- 19 pandemic and the more recent Russian-Ukraine war. The Kenyan shilling has also weakened against the dollar implying that fuel importers will use more shillings to import the same volumes of oil. This led to oil vendors withholding products from the Kenyan market while diverting fuel to neighboring countries in a bid to compel the government to track their payments as well. The Kenyan government had partially withdrawn the fuel subsidy sending diesel and petrol prices to an all-time high since October last year.
With historic heights, the super petrol and diesel prices shot by sh. 5.50 signaling the increase in the cost of basic goods and services hence having a direct impact on the Kenyan economy. The energy and petroleum Regulatory Authority (APRA) set the new retail prices at sh.150.12 for a litre of super petrol and sh. 131 for diesel. This single-handedly shows that there will be tough times for households and motorists given that fuel is the key determinant of the basket of goods and services used to measure inflation. When the fuel prices increase a larger share of the household’s budget is likely to be spent which leaves less to spend on other goods and services. For businesses, whose goods must be shipped from place to place the shipping prices will be much more expensive therefore increasing the prices of goods. This price has also shifted the growth of the economy through its effect on supply and demand for goods and services brought about by the production costs increasing slightly higher than expected.
Despite the increase in fuel prices the government committed to pay marketers an estimated sh. 14.39 billion as a subsidy to prevent further price escalation. The subsidy has come under increased pressure as the state struggles to compensate for the high deltas amid the global rally in crude prices. Apart from straining the government finances, higher fuel prices drive up inflation which sees lots of economic policies not being implemented. The inflation rate is expected to rise by 50% in the coming months with prices of commodities’ becoming unsustainable.
Peter Kipkirui | Kipkiruironoh11@gmail.com
The writer is a Kenyan economist working in the cooperative movement space.
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We've reached a moment in history when self-esteem, which has always been an important psychological need, has also become a supremely important economic need. Identity, competence and worth are key, especially with the turbulence of our times as it is a dangerous time in history not to know who we are or not to trust ourselves. Self-esteem fully realized is the experience that we are appropriate to life and its requirements. It is the confidence in our ability to think and cope with the basic challenges of life and in our right to be successful and happy. Self-esteem has two interrelated components: A sense of basic confidence in the face of life's challenges (self-efficacy) and a sense of being worthy of happiness (self-respect). To have high self-esteem is to feel confident and appropriate to live. When self-esteem is low, we are often manipulated by fear.
The 6 pillars of self-esteem according to Nathaniel are: The practice of living consciously that is living responsibly toward reality. It entails an active mind, an intelligence that takes joy in its function, being in the moment without losing the wider context, reaching out (rather than withdrawing) to relevant facts, interpretations and emotions. The practice of self-acceptance.Self-acceptance simply means to be on my side or for me. Self-acceptance entails compassion; being a friend to self. Self-esteem suffers if we are in a rejecting relationship with our physical being. The practice of self-responsibility. Self-responsibility is not only essential but also a manifestation of self-esteem. What one needs to know is the difference between what is within their control and what is not.
The practice of self-assertiveness.Self-assertiveness is honouring my wants, needs and values and seeking their appropriate expression in reality. It is tested by what we stand for, not what we are against. The practice of living purposefully; to live without purpose is to live with the mercy of chance because we have no standard by which to judge what is and is not worth doing. The practice of personal integrity. When our behavior is congruent with our professed values when ideals and practice match, we have integrity.
Perseverance and courage are necessary for the road map to building good self-esteem. The energy for this commitment can only come from the love we have for our life. This love is the beginning of virtue. The seventh pillar of self-esteem!
Esther W. Njaramba
The writer is a passionate Counselling Psychologist who works with individuals and groups to see to it that they lead satisfying and happy lives.|njarambaesther3@gmail.com
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Mental health is a state of wellness of the mind, meaning the ability of one to cope with stress. According to WHO, a person who is mentally healthy can work productively and fruitfully and is able to contribute positively to the community. Mental well-being is characterized by autonomy in decision making on various life issues, good interpersonal relationships, the ability to exhibit a good perception of reality, and having problem-solving skills. On the flip side, mental illness encompasses abnormal thought, perception, emotions, behavior and relationship with others. Mental health disorders include depression, bipolar disorder, schizophrenia, dementia, and eating disorders such as anorexia.
In 2020 the Ministry of Health (MOH) Kenya estimated that one in every ten people suffer from a common mental illness. The number escalates to one in every four people among patients attending routine outpatient services. A task force put together by the ministry of health urged the government to declare mental health a national emergency in Nairobi. Their findings alluded that Kenya has a high burden of mental illness due to ill health, psychosocial disability and premature mortality with huge gaps in access to care.
Majority of Kenyans associate mental illness with negative narratives. People with mental illness have been portrayed as unpredictable, unsociable, dangerous or violent, thereby perpetuating misconceptions, misinformation and stigma. To change this narrative, communities need to be sensitized through training, and education in order to prevent the stigma and get more people to open up about their issues, and hospitals should have centers that incorporate a psychiatry unit.
The journey towards transforming mental health care systems in Kenya has notably gathered momentum following the launch of the Kenya Mental Health Action Plan (2021-2025). The document outlines a four-point broad plan to boost mental health structures as well as increase funding. It prioritizes strengthening of mental health leadership and governance, implementation of strategies for the promotion of mental health and prevention of mental, and substance use disorders, ensuring access to comprehensive, integrated and high-quality mental health services as well as strengthening mental health systems, including health information and research.
I believe that every one of us can make a difference, in impacting a positive attitude in people in regard to mental health and this can only be done if the society is empowered by knowledge. With increasing suicidal cases, it is paramount that every mind matters, and no one should be left isolated and/or stigmatized.
Lydia Nyakio | britneynyaks@gmail.com
The writer is an aspiring Nurse who is passionate about educating the public on various health issues and ensuring they all attain good health status.
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The Cooperative sector in Kenya has come a long way since it was established in 1908, and so has the corporate world in general. This sector has experienced tremendous growth in its product offerings and evolved from the provision of products only to that of services. However, one area that it is still lagging in is its branding.
The demographic of those interested in the services offered by Cooperatives has shifted to much younger customers. The allure of SACCOs, in particular, has rocked the Kenyan microfinance market, creating an influx of younger clientele. Youth are drawn by artistry, creativity, and free expression, aspects that are lacking in the advertising plans of many Cooperatives. On the other hand, older customers are more concerned about functionality. Therefore, marketing to this diverse audience poses some interesting dynamics for cooperatives.
Currently, the lack of appeal to youth audiences is the biggest challenge for Cooperatives when it comes to branding. Most of these institutions were set up in an era when their target customers were only concerned with the services they offered. Therefore, with the new interest that youth have in Cooperatives, many are out of their depth!
So, the million-dollar question is: how can Cooperatives brand themselves to appeal to a broader customer base?
First, the days of poorly done graphics and ad content are long gone. Many Cooperatives customers nowadays are not just looking for who has the best services. They are also looking for who is giving the best user experience. One of the biggest markers of this is a brand that has excellent brand appeal in its marketing materials. Therefore, Cooperatives must have flawless graphics and copy with a wow factor.
Second, brand presence is everything. Nowadays, it is not just the best brands that get the biggest customer base. It is also those that are visible and constantly on the customer’s face. As such, Cooperatives that want to generate user interest have to be intentional about being seen. They have to utilize avenues like social media, radio, television, billboards, and print media to catch attention.
Finally, a dismal brand identity is inexcusable. Having a logo, slogan and brand that looks archaic rebuffs many Cooperative customers today. Therefore, these institutions must get a modern look aligning with the current branding trends.
Ultimately, Cooperatives have to up their branding game to remain relevant in the current markets!
Jackson Macharia | jackson.macharia@digicreative.co.ke
He is a brand strategist and digital content creator who helps individuals and businesses thrive in today's modern markets by enhancing their branding and marketing.
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Kenya's financial space has always exhibited developments thanks to technology. Most significant developments have been in the fintech sector where numerous intermediaries, both local and international have sought a piece of Kenya’s multi-billion sector as soft loan providers, payment service providers, mobile-based insurance providers, not forgetting savings and fund management. As such, financial inclusion is progressively being achy. An aspect often overlooked is the issue of transaction fees and other costs associated with them.
Local Retail investors have always faced numerous challenges accessing Kenya’s capital markets. When people trade shares, they pay several levies and commissions to different market players who include, the stockbroker, the CMA, the CDSC and the taxman. Earlier in May 2022, the CDSC announced plan to introduce a monthly account management fee of Kes 100. This could see the corporation make 1.8bn in revenues. This comes at a time when investor wealth has shrunk owing to the poor stock performance. Foreign investors have also been disposing their holdings as they look for opportunities in developed markets. As such, local investors are keeping their holdings in the deep. Such maintenance fees should only be effected in case the service custodial role requires routine maintenance but in this case, there are little to no additional services that warrant its introduction. After an investor outcry, this levy was suspended pending further consultation.
Another aspect that often goes unnoticed is the tax regime. Previously, the gains from stock-trading were tax-exempt. Things changed in 2015 when capital gains tax was introduced. The tax charge for local investors is 5% of the net gain. Trading also attracts VAT meaning that the investor has to pay these fees together with the taxes mentioned. Such levies increase an investor's total cost calling for a higher price movement in order to realize a profit. This could be the reason behind huge investments in land and real estate.
As trading costs increase locally, international markets are seeing scrapping off of brokerage commissions with the advent of online trading apps such as Schwab and Robinhood. Owing to the fact that they are available online, they have attracted traders across the world in search of performing stocks unavailable in their countries. With these retrogressive fees being applied in a developing market, the market risks tapping into the tech-savvy youthful population.
Financial inclusion especially in the domestic market is key for wealth creation. The government and sector players should be at the forefront of making sure that they not only attract new listings but also local and foreign investors.
Brian Sikuku |bransikafrica@gmail.com
The writer is an investment professional interested in financial markets, alternative investments and financial education.
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I spend more time with my personal computer and phone than I spend with any other resource for work, entertainment or learning. These technological devices have formed a part of me and in many ways, I am incomplete without them. I have thus come to appreciate with time that I need to maintain my laptop and my phone to remain efficient at my work. I also need to continuously upgrade both software and hardware parts of my computer to derive maximum utility when using it. With these basic needs in one’s exposure to information technology equipment, you realize that having a reliable provider of maintenance services is just as critical as having a doctor.
Choosing a service provider for maintenance of your phone and computer is however not as easy as walking into a shop to buy candy. You need to first trust whoever you are giving your equipment to service. The technician should be well trained and experienced enough to handle your valuable assets. Remember a mistake during the repair of your computer can be so costly. There is thus no room for second-guessing. You also need to find a service provider who is rational, human and willing to engage you in a conversation. When you talk to your computer technician, you will be able to benefit from their knowledge of technological trends in the market, better ways of giving your computer a long life and getting software updates done on a timely basis. You want a guarantee of great service, assurance of the amount of time that it will take to get your computer or phone repaired and to feel safe that your technician is doing the right thing.
Konstra Engineering in Nairobi is one firm that offers quality engineering and technology solutions. The firm has specialized in customized computer building, repairs and maintenance, IT solutions, Electrical and Electronics solution and Mechanical Solutions. Konstra Engineering has invested in quality customer service that includes mobility of its Engineers and technicians and a quality guarantee commitment that is inherent in their business DNA. The most outstanding strengths of Konstra Engineering are that all its team members are highly trained and qualified experts and that each of its clients is assigned a relationship manager to follow up on user satisfaction after buying a computer from them or after consuming their maintenance service. Contact Konstra Engineering via (+254) 0705635097 or find them on Facebook and Twitter.
Rick Okinda | okinda.p@igrandbp.com
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs.
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We cannot talk about insurance without discussing the concept of risk as risk is the reality that calls for insurance. A risk is a situation/action that involves exposure to danger that can possibly result in loss or injury. In reference to a hazard, risk could also refer to the degree of likelihood that harm will be caused. Risk management is a planned approach to dealing with risks that can affect one’s business. It involves identifying all possible risks and calculating the cost of protecting oneself against them. Risks can be personal, involve family or involve a business. Personal risks for example if not taken care of may end up risking the business or the family hence insurance for all dimensions is key.
Some of the ways to minimize business risks include Installing Security systems for example alarms, CCTV, motion sensor lights, Training one’s team to ensure they are aware of health and safety procedures and rules for example during a fire, Appointing a health and safety officer who reports issues and conducts regular inspections.
Insurance is one form of risk management; it is a contract represented by a policy that provides financial protection or reimbursement against losses. In other words, it is the technique of transferring the risk of a person or organization to another by means of a contract. It not only provides payment of claims for the majors but also defense coverage in the form of investigation attorneys and occasionally expert witnesses. A risk matrix is an important tool that helps understand the likelihood of the risk happening versus the risk impact.In finding an insurance company, the first step is to find an insurance agent whom one can trust for their recommendation on issues such as the company’s financial rating and their personal experience with the company among others. Independent agents help to determine the best value for one’s money.
In conclusion, it is important to note that the company provides the policy, bills one for the premium, and pays the covered losses. One has to consider the value of the coverage offered, not just the premium that they will pay. Having insurance helps to: indemnify one against losses, manage cash flow and certainty, comply with legal requirements, promote risk control activity and efficient use of the insured’s resources, decrease one’s social burden and create support for the insured’s credit. Every business needs insurance!
Esther W. Njaramba |njarambaesther3@gmail.com
The writer is a passionate Counselling Psychologist who works with individuals and groups to see to it that they lead satisfying and happy lives.
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Foreign used cars are cheaper and in good condition compared to locally used cars. Therefore, more people prefer importing foreign used cars. The relevant stakeholders such as KRA, KEBS and NTSA have produced various regulations and statutory requirements that govern the importation of foreign used cars by car dealers. The importation of such vehicles should comply with the KEBS requirements provided for under Legal Notice No. 78n of 15th July 2005 and Kenya Standard Code of Practice for Inspection of Road Vehicles.
The main cause of disagreement that saw the Car Importers Association of Kenya file a suit in the form of a petition in Court is the 8 years or less age limit from the year of registration. The car dealers argued that there is disharmony in the method used by KRA and KEBS to determine the 8 years. Due to the above disparity, car dealers have incurred huge economic losses when paying import duty. The other major loss resulting from the disparity is a rejection of certain vehicles hence preventing them from entering the Kenyan market.
The car dealers had filed a constitutional petition seeking to compel KRA and KEBS to harmonize their methods of computing the 8-years age limit for importation of cars. The court noted the disparity given that KRA starts counting the eight years at the beginning of the year when the car is registered. KRA’s computation criteria, therefore, disadvantages dealers who have registered their cars months after January. KEBS on other hand bases its computation on the month when the car was registered hence a bit reasonable.
Justice John Mativo, while dismissing the case, acknowledged the existence of the disparity but went ahead to state that the car importers were inviting the court to legislate which is a preserve of parliament. The KRA mode of computation means that a car seller will have to pay different import duties on two vehicles bearing the same year of manufacture. Consequently, the court threw the ball back at the petitioners to initiate legislative reforms of the car import regulatory regime. The reforms if initiated and implemented will ensure that the car dealers minimize losses incurred due to high import duties. As a result, the car import business will improve hence creating a source of employment and livelihood for more people.
Boaz Bwire Onyango|bwireboaz@gmail.com
The writer is a lawyer, an Advocate of the High Court of Kenya and an enthusiast in legal research and analysis of emerging legal issues affecting the business environment in Kenya and Globally.
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Little Kenyan unseen firms using technology have reached underserved markets and have emerged as the fastest growing business in Africa. The Idea of banking has existed for centuries and has continued to evolve with dynamic human needs. According to the Inaugural FT rankings, Nairobi Kenya has been ranked as the third-largest home for quickest expanding fintech companies in the African continent. The majority of financial services companies have integrated technology into their operations to improve their service delivery. These fintech companies are seeking to tap African unbanked populations or markets that have been previously underserved or ignored.
Fintech simply refers to the integration of technology into offerings by financial service companies to improve their use and delivery, think of digital lending, payments, and digital wealth management. In today’s digital age we have seen a major transformation in the financial service industry. What was for many decades an unchanging industry is now constantly evolving with banks battling to keep up the tech- integration. Kenyan financial markets have undergone major technological changes driven transformations:
Online banking- Have you ever transacted from your bank remotely? Electronic payments have enabled clients to conduct financial transactions through institutions, smartphones, or websites. In Kenya, the online banking revolution has caused a restructuring of the traditional banking model with mobile and internet banking being the most active transaction channel with over 54% of the total number of transactions conducted. Financial sectors view technological innovation as cans of improving efficiency and reducing costs.
Mobile Money: Thinking of Mpesa right? Mpesa platform is simply an electronic service that allows you to send and receive money using a mobile phone. In Kenya, the Mpesa platform was introduced in 2007 through Safaricom M-PESA platform which has been a game-changer since its inception. Communications Authority of Kenya (CAK) data shows that Kenya’s mobile penetration rate stood at 100% with active subscribers being 64.5% of the population.
Fintech regulation is however becoming complex and intrusive. Financial institutions have faced multiple regulatory jurisdictions and regulators requesting a large amount of data from firms. The purpose of these is to adopt compliance with strict financial regulations to the growth and pace of the most innovative companies, in a way that does not smother the fintech sector with rules but also does not diminish consumer protection
Peter Kipkirui |kipkiruironoh11@gmail.com
The writer is a Kenyan economist working in the cooperative movement space
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A life insurance policy is a contract between an insurance company and an individual where the policyholder pays a premium to the company, in case the person dies, the beneficiaries are paid a lump sum known as death benefit which caters for burial and funeral costs. With the emergent trends and increase in the rate of chronic illness, most people have developed diseases such as cancer, diabetes and hypertension. The treatment and lifelong management of these diseases have been a burden to many families. This policy can help reduce these costs.
There are several types of life insurance including; whole life insurance, Insurance for burial and funerals, credit life insurance, mortgage life insurance etcetera. My focal point is Whole life insurance that offers protection for the rest of your life. A portion of the premium one pays is utilized and generates cash over time. The premium rates are fixed and the rate of the payable amount is also fixed.
Why then should I take this policy? A whole life insurance policy has a constant premium rate that doesn’t change. An important living advantage of this policy is the cash value which accumulates as you contribute your monthly premiums and it grows slowly over the years. This money can be available to you at any point in your life and it is guaranteed to always increase and never go down. There is a provision in which a whole life insurance plan can pay dividends in addition to the assured cash value. A lot of individuals always opt to either use this to pay part of their premiums or even reinvest it in the policies. Finally, life insurance has an advantage when it comes to payment of tax, the death benefit is usually exempt from tax.
There are also some disadvantages in relation to this policy like it has a higher payment of premiums and as compared to term insurance, it has a lower death benefit. This insurance policy often invests the premium of the policyholder where it sees fit. A person with good investment ideas may opt to evaluate the market and invest his cash in a sector that earns the highest benefit. It goes without saying that the benefits related to taking this insurance policy outweigh the risks therefore it is necessary for one to get a life insurance cover and this is dependent on individuals’ abilities and needs.
Prayer Major | wapukhamajor@gmail.com
The writer is a student at Karatina University pursuing a Bachelor of Science degree in nursing. She is also passionate about leadership and media.
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This is a modern fable on real success in business and in life. The author delivers his work in a fictional story involving a hero, Blake Davis who is a student to his mentor, Tommy Flinn who then introduces him to four teachers, who teach him profound leadership insights in form of conversations summarized by acronyms. The main theme of the book is summarized by the letters LWT i.e. Lead Without a Title. While titles and structures help to maintain order, each one in any team ought to always assume personal responsibility, by becoming the CEO of their own roles and leaders within their current positions.
There are four natural powers and five rules that one needs in order to lead: The power to go to work each day and express their absolute best. The power to inspire, influence and elevate each person they meet by the gift of a great example. The power to passionately drive positive change in the face of negative conditions. The power to treat all stakeholders with respect, appreciation and kindness and in so doing raise organizations culture to best of breed. The five rules are summarized by the acronym IMAGE: Innovation, Mastery, Authenticity, Guts and Ethics.
Turbulent times build great leaders, an old saying goes, “when the going gets tough, the tough get going.” One cannot reach the place of breakthrough without breaking down. SPARK was the acronym for this conversation. Leading without a title has so much to do with being a light in a dark and turbulent world. S for speaking with candor, P for prioritize, A for adversity breeds opportunity, and finally K- always remember to offer Kudos.
The deeper your relationships, the stronger your leadership. The main business of business is to connect with and add value to people; money follows contribution. It is all about people! One cannot afford not to be spending time relating with the people they spend most of their working hours with. HUMAN acronym comes in handy to remember this concept: Helpfulness, Understanding, Mingle, Amuse and Nurture.
To be a great leader, first become a great person. You cannot energize anyone around if you have no energy yourself. Personal leadership has seven fundamentals: learning, affirmations, visualization, journaling, goal- setting, exercise and nutrition. The acronym for this conversation wasSHINE i.e. See clearly, Health is wealth, Inspiration matters, Neglect not your family and Elevate your lifestyle.
Esther W. Njaramba |njarambaesther3@gmail.com
The writer is a passionate Counselling Psychologist who works with individuals and groups to see to it that they lead satisfying and happy lives.
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Many Kenyans are currently caught in the grip of heightened food prices engendered by the currently market inflations that have steadily been escalating. Kenyans have protested on social media about the high cost of living using the #LowerFoodPrices in vain. They criticize the government for failing to stem the rise in the prices of everyday items. In March, the Kenya National Bureau of Statistics (KNBS) reported a 9.2% food inflation rate, which is predicted to increase further with the increase in fuel cost. This means a greater majority of Kenyans are and will be unable to put food on the table.
In 2021 Kenya was ranked 87/116 qualifying countries on the 2021 Global Hunger Index. In the same year, 2.6 million Kenyans were said to be in a food insecurity crisis. This is termed a ‘serious’ food and nutrition insecurity situation. Food and nutrition security means that all people, at all times, have physical, social, and economic access to sufficient, safe, and nutritious food that meets their food preferences and dietary needs for an active and healthy life. In the whole country, prices of basic food items like milk, bread, sugar, and maize flour have spiked sharply in recent months, making it difficult for Kenyans to afford the recommended three meals per day. While these frustrations on social media are collective, the financial squeeze is more painful on a personal level.
Those hit hardest by these increased costs are the vulnerable. The pressure to shift to cheaper, sugary, salty and fatty food alternatives in order to have enough to eat may be enormous. Those who need to manage their diets to control diabetes, heart conditions and so on may face the prospect of worsening health. If, as expected, these food price rises become the ‘new normal’, even fit, healthy people would risk developing chronic disease as a result. Moreover, there can be poor educational attainment, poor mental health and social isolation, or increased mortality rates.
Both short-term and long-term policies that have been enacted by the government should be implemented. Some households might require emergency food assistance by the government and donors, food subsidies, cash transfers, food for work and school feeding programs, adjustment of trade and tax measures, enhancement of agricultural production by providing agricultural input subsidies etcetera. At a household level, families need to budget, cut on junks, enrich foods and preserve the leftovers, and invest in kitchen gardening.
Argwings Chagwira Muliro | am.chagwira@gmail.com
The writer is a nutrition and wellness professional who is focused on conducting detailed nutrition consultations and creating personalized meal plans to meet the needs of his clients
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In the just ended decade, big names in digital media ownership included Mark Zuckerberg of Facebook, Larry Page of Alphabet, Bill Gates of Microsoft and Jeff Bezos of Amazon. These among others in big-tech companies have shaped how information is organized and consumed around the world.They have also added impetus to conversations around data privacy, freedom of speech and e-commerce from their innovative applications such as Facebook, YouTube, LinkedIn and Amazon that bring communities together. These companies have grown their shareholder’s equity majorly from advertisements and selling of data. Between 2011 and 2020, most of these companies were in their growth stages implementing subscription strategies and clearing barriers from governments to operate in different jurisdictions. From 2021, the oligopolistic big tech sector is witnessing change of strategies and business models from most of these companies. Facebook for instance rebranded to Meta in a bid to regain trust from the public on its commitment to uphold data protection laws and to offer better the experience of using its products.
Starting January 2022, a new kid has come to the block with a mission to democratize freedom of speech on social media and to make social media work for its users rather than for government policy makers and a few board members running the company. Elon Musk disclosed his 9% stake in twitter through a statutory filling with the US. Securities and Exchange Commission. This also implied that Elon Musk was the largest non-institutional shareholder of twitter and deserving a seat on twitters board. Musk however turned down an offer by twitter’s CEO Parag Agrawal to join the board. Since the start of April 2022, Elon Musk has publicly engaged twitter users on how they want twitter to function. He thinks twitter should not only depend on income from advertisement but also innovate to earn revenue.
Elon Musk’s strategy to take over twitter from public listing to private ownership is timed and fueled by his wealth and influence in corporate governance. With immense success in Tesla, SpaceX, The Boring Company, Starlink and OpenAI, Elon Musk who is currently the world’s wealthiest person has attracted trust from leading lenders like Morgan Stanley Bank in purchasing twitter shares at premiums as high as 38%. His negotiation skills and mastery of organization politics has earn him credits in convincing twitter board to lift “poison pill” defense strategies from his hostile takeover plan of twitter.
Rick Okinda | Okinda.p@igrandbp.com
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs.
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What questions do you ask yourself when buying chocolate or a favorite snack? Are you fascinated by the colour, packaging, taste and how it is displayed in the candy shop? At what point do you evaluate the prices? How do you feel when you try a new brand that is highly priced but delivers little or no satisfaction? Your answers are not different from mine. In my explanation, a rational person is a utility maximizer. This is why we sometimes find ourselves moving from one shop to the next to just get a pair of black leather shoes. When looking for a home to buy or rent, the work of moving from one property to another could be tedious and without sufficient advice, it may not help the buyer to make a decision. This is why you need an advisor you can trust. One that listens to your specifications, offers the best advice and helps you to meet your goals.
When choosing your next home, you need to have clear priorities on what you want in a house. You will first need to know what the market is offering in terms of available standards and prices. Market prices are often determined by forces of demand and supply. This means that prices will go up when there are few houses available and a high number of willing buyers. Secondly, scrutinize the property thoroughly to grasp a full understanding of it. This works best through an inspection that can be done physical or virtual on a video call. Get to know hidden expenses that may arise and how well it suits your taste for a home. The third box in the checklist is an appraisal of market price in comparison to the price given in a valuation report. Look at comparative sales in the area, affluence of the location, legal description, improvements made and land use. It is also key to investigate the title and transaction documents of the property and check for government regulations affecting the property. Government regulations maybe inform of zoning forest areas, flood zones, road reserves and compliance with construction regulations.
Fairview Realty is a Nairobi based firm that understands how real estate brokerage functions. It has brought creative property marketing through clarity of communication, building on a tradition of trust and putting the customer first. Reach Fairview Realty via +254736579665 or on social media platforms and their website; www.fairviewrealty.co.ke.
Rick Okinda | Okinda.p@igrandbp.com
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs.
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Kenyan artists now have a big relief after the Copyrights (Amendment) Bill 2021 was signed into law on 4th April 2022. Section 2 of the Act defines ring-back tunes to mean subscription music or a tone that is played by a telecommunication operator to the originator of a call. The Act also contains a new revenue sharing formula between the artists and other stakeholders in the industry. Pursuant to section 30C of the Act, the parties to a ring-back tune are to share the net revenue from the sales of the ring back tunes at different percentages with the artists getting the larger percentage. The premium rate service provider will get a share of 7% while the telecommunication operator is to get 16%. The artist or the copyright holder will get 52 % of the revenues earned.
The new law establishes the National Rights Registry as an office within the copyrights board to perform duties such as digital registration of rights holders and digital registration of copyrights works among others. The registry is in the form of an online portal that will allow any person to access the copyrighted works upon payment of the prescribed fees whereby such amount is channeled to the rights holder. According to the promoter of the Bill which has become a law, Hon Gladys Wanga, the main objective of the law is to amend the Copyright Act of 2001 to provide a fair formula for sharing revenue from ring back tunes between the artists who are the copyrights holders and the telecommunication companies such as Safaricom and Airtel. Pursuant to the new law, the artist is made the main beneficiary by getting a greater share of revenues collected. The Act also repeals provisions on takedown notice in case of copyright infringement incidences, removes the ambiguity in the role of internet service providers, provides for application for injunctions to cure copyright infringements and align the Copyrights Act with other existing legal remedies.
The changes introduced by this new law will stabilize the creative industry and increase income for the artists hence boosting the economy at large. Artists will utilize the improved income to set up various businesses and platforms such as established music records and labels that will sign in other upcoming artists on a contractual basis. The overall effect will be a source of employment for young and talented youths who are currently jobless.
Boaz Bwire Onyango | bwireboaz@gmail.com
The writer is a lawyer, an Advocate of the High Court of Kenya Trainee and an enthusiast in legal research and analysis of emerging legal issues affecting business environment in Kenya and Globally.
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Ms. Ojiambo comes from a family of achievers, but not just any kind; the trailblazing ones. Her late father, Dr. Hillary Ojiambo, was Kenya’s first cardiologist. Her mother, Prof. Julia Ojiambo, was Kenya’s second female elected Member of Parliament and the first female assistant minister. Sanda has three siblings consisting of a doctor, a lawyer, and a consultant management trainer. She speaks highly of her upbringing and attributes the support and inspiration she received to her success, now being the first African CEO of the UN Global Compact.
Sanda did her O levels in England and proceeded to pursue a BA in Economics and International Development at McGill University. After that came an MSc in Public Policy and Development Economics from the University of Minnesota. Her career decision was also majorly influenced by her experience growing up in Kenya, as she would get involved in various community development programs.
After her master’s degree, Sanda worked in Somalia for five years. She worked with CARE International and the UNDP office in Somalia as a Program Coordinator and Consultant respectively. She then joined the Planned Parenthood Federation of America in 2002 and two years later moved to the International Planned Parenthood Federation. She served as the Director of Programs in the Africa Regional Office, reaching over 40 countries in sub-Saharan Africa. In 2008 Sanda joined Safaricom and worked with the company for 11 years. Among her key moments during the period was the inauguration of the M-Pesa Foundation Academy. At Safaricom, she also got exposed to sustainability as the Head of Sustainable Business & Social Impact and worked together with the UN Global Compact when Safaricom became a member company.
As the CEO and Executive Director of the UN Global Compact, Sanda works with businesses the world over to bring to realization the Sustainable Development Goals. She proposes that businesses must embrace working together to achieve these goals. Specifically for African Businesses, she puts forth that it would be impossible to survive should they choose to act unilaterally. She also emphasizes the need to move from ambition to action and accountability. Through the UN Global Compact, she can provide businesses with a system that helps them in this transition by allowing them to set goals and provide feedback on the same. According to Sanda, having a purpose-driven profit mindset is what will help businesses contribute to the SDGs and the 2030 vision.
Purity Buyanzi | puritybuyanzi@gmail.com
The writer is an aspiring Financial Analyst, passionate about leadership and mentorship.
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Many Kenyans believe that Kenya’s economy was at its best during the reign of the late President Mwai Kibaki. Dr. Mwai Kibaki who was an economist from Makerere University in Uganda excelled in managing Kenya’s economy between 2002 and 2013 thanks to his academic and professional background and sufficient experience in national treasury prior to his presidency. During Kibaki’s reign, there was a global recession which began in the United States as a result of deregulation of the financial industry. There were also internal civil wars in the country which were fueled by tribalism in Kibaki’s government, unevenness in sharing national resources between regions and mistrust among politicians in the then ruling party. Despite all these challenges in Kibaki’s 10-year tenure as the country’s chief executive, the gentle Kenyan politician managed to place Kenya in the top 12 list of Africa’s largest economies with a moderately low appetite for foreign debt yet with fairly significant investment in infrastructure.
Just like John Myriad Keynes, a great classical economist whose ideologies are taught in business schools today, Kibaki believed in free markets and in liberalization of the economy through policy interventions. President Kibaki opened up commercial lending in the country by providing sound regulations of the money markets through the Central Bank of Kenya. Kibaki also grew revenue collections by expanding the tax collection base. He borrowed from the West and the East based on affordability of loans and reasonableness of terms and conditions. Kibaki’s success in public debt management went a long way in managing inflation levels and stabilizing the shilling against other currencies. Unemployment rate and poverty index of Kenya compared to other East African countries was slightly higher throughout Kibaki’s regime indicating that the gap between the rich and the poor existed at very wide margins. This could be attributed to the capitalistic nature of Kenya’s economy whose seeds had been sowed by Presidents Moi and Jomo Kenyatta in Kenya’s years of infancy.
In my qualitative analysis of Kibaki’s performance as briefly summarized in this column, I found a leader who understood economics of the country in theory and in practice. The consummate economist set the stage for Kenya to take off as an economic powerhouse in Africa and as a significant participant in global trade. His policies on management of the economy are widely admired across political divides, private sector leaders and the electorate of his time.
Rick Okinda | okinda.p@igrandbp.com
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs.
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Paulo Coehlo’s quote, “When you say ‘yes’ to others make sure you are not saying ‘no’ to yourself,” summarizes the theme of this webinar. Over and over again, ethics and self-care need to constantly be at the top of our to-do lists otherwise our productivity in any business will be compromised. We need to intentionally and deliberately pursue behaviours that not only match our moral codes but those that promote our well-being too. Burnout is associated with suboptimal care and reduced mental and physical health care. It was first spotted among those in the “helping profession” but it is now also reported among workers and other professionals who develop depression-like symptoms often due to stress-related to their vocational roles.
Some signs and symptoms include physical and emotional exhaustion, insomnia, impaired concentration or memory loss, physical symptoms e.g. hypertension,absence of positive emotions, substance use, cynicism, lack of resilience/patience and forgoing important personal activities. Consequently, this impacts one’s health, their interaction with customers, co-workers and family, their attitude and general life satisfaction. The causes of burnout maybe and are not limited to excessive workload, emotionally draining work, lack of support, resources, rewards or control, unclear or ever-changing requirements, pessimism and perfectionism, value conflict, reluctance to delegate, high achieving type A personality, work-life imbalance and unpleasant working environment. Malasch Burnout Inventory (MBI) is commonly used for self-assessment exploring three components: exhaustion, depersonalization and personal achievement.
There are individual and system strategies that may aid to curb burnout: periodic self-assessment, enforcing realistic boundaries, mindfulness and meditation, healthy breaks and exercises, journaling, planning and to-do lists, practicing deliberate gratitude, being aware of personal negative feelings towards certain clients, identifying what upsets you about them and appreciating that it may not mean you are bad- remember all behavior is a form of communication. Organizations and institutions need to: grant their employees paid time off, increase staff capacity and provide a reasonable workload for each, organize frequent retreats, improve communication, perform efficiency audits, ensure proper work-life boundaries are maintained, increase staff input on changes and decisions and have an efforts-reward balance.
It is good to note that burnout occurs through stages: honeymoon, onset of stress, chronic stress, burnout and habitual burnout. When one is self-aware, they can notice unusual changes in their body or environment and rectify them before burnout becomes habitual. Burnout work environments are a reality but burnout doesn't have to be.
Esther W. Njaramba|njarambaesther3@gmail.com
The writer is a passionate Counselling Psychologist who works with individuals and groups to see to it that they lead satisfying and happy lives.
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A strong saving culture and financial responsibility are key to a better tomorrow. Most people know these words by heart but have scanty knowledge on how to go about building their wealth and attaining the ultimate financial freedom. Wealth is defined not just as the riches that one has but the amount that can be able to sustain you after your job is lost or income stops flowing. As much as savings is a topic that is becoming a cliché, I would like to bring it into a new light. Research has shown that countries with a high savings rate can withstand financial shocks and channel more funds toward the critical sectors of the economy.
Georges Clason’s book, the richest man in Babylon, he states a law of wealth that I find very relevant today that he who does not spend all his money but keeps a certain amount of it gold comes more easily to him unlike he who spends all his income does gold avoid. Similarly, Warren Buffet says “always pay yourself first.” The percentage of savings is a variable but it should not be less than 10% of all your income. In my opinion, saving is an intentional discipline. Information on hidden rules about the social classes’ notes that the poor people think that money is to be spent, the middle class thinks money is to be managed and the rich think that money should be invested. Human wants are insatiable, we can discipline ourselves to utilize the 90% to meet our needs effectively once we have developed this culture it will no longer be a strain and we will not lack anything we used to have before we started saving.
Budgeting for your finances helps you find loopholes where your money is leaking. Budget for all your expenses and strictly stick to it as it will help you control your expenditures and be more financially responsible. Savings should not be buried underground rather they ought to be multiplied. You can choose to save in financial institutions such as banks and SACCOs. When saving, remember that you save where your principal amount is safe, reclaimable, and earning a good interest for you. Finally, only take advice from people who are experienced in handling money, do not experiment with your treasure. I believe a man’s wealth is not in the purse he carries think about that.
Prayer Major | wapukhamajor@gmail.com
The writer is a student at Karatina University pursuing a Bachelor of Science degree in nursing.
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In late December 2021, Kenyan banks reported record profits and dividends making them one of the best-performing companies on the bourse. To put it into context, the sector recorded Kes.197.6 bn net income with the total issued dividends topping 51.7bn. One might wonder how this is possible owing to the fact that the economic effects of Covid 19 are still being felt across every sector. This issue delves deeper into why this performance has been so impressive that many wonder whether they (banks that posted massive profit declines in the prior period) operate in an economy different from that of the other players.
Even before the pandemic, the world economy had shrunk with large economies experiencing an economic slowdown. With the pandemic, credit was frozen and most loans proved uncollectible. As per IFRS 9, banks had to foresee credit default thereby, passing huge provisions for loan losses.This saw the banks post a net cumulative profit of 107.3bn. As the restrictions eased, customers continued servicing their loans, allowing them to lower these provisions (by as much as 70%). The net effect was increased net income.
Another reason could be attributed to income diversification. Most banks have leveraged on technology to meet the ever-changing customer needs. As such, banks have strived to increase non-interest income. This has seen the income growth over time, becoming an element with a significant impact on their mandate. Also worth noting is that these banks have developed an insatiable appetite for government debt. This has guaranteed a constant stream of income at a time when our government has become a net borrower.
Cost reduction has also played a significant role in boosting profitability. In comparison to 2020, banks cut their operational costs by as much as Kes.42bn. This is seen in the transition to online platforms as well as soft mobile phone loans. Banks have been closing unprofitable branches in a move that has saved lease costs. With mobile and internet penetration growing daily, most branches are set for closure.
Over the years, the Kenyan market has been the major contributor to the sector's mandate. With the EAC now connecting the Indian Ocean to the Atlantic Ocean, local banks have been on an expansion spree. This has seen regional entities contributing more revenue and profit. For instance, Equity Bank's expansion into the DRC has seen to it that one third of the revenues came from one of Africa's most populous countries where they are ranked second in terms of assets. This growing trend will see the exposure of our locally owned banks reduce as regional entities' contributions increase
The banking sector has always played a crucial role in the success of any economy and its performance is a good indicator of economic success.Going forward, banks should increase lending to SMEs to guarantee a significant impact on the general economy.
Brian Sikuku |bransikafrica@gmail.com
The writer is an investment professional interested in financial markets, alternative investments and financial education.
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The war between Ukraine and Russia has yet again put the global economy at the verge of collapsing even before the world fully recovers from disruptions caused by the COVID19 pandemic. For the past two years, unexpected events have significantly changed the way we do our things. The International Monetary Fund has warned that the fight between Russia and Ukraine could pose a great economic threat that could hurt the anticipated post-covid 19 recoveries. Global economy profoundly remains affected by the negative impact of the pandemic. However, there is slight stability in the second half of 2021 amid Omicron that threw the global markets into a frenzy.
Countries that have economic links with Ukraine and Russia are at particular risk of scarcity and supply disruption and are most affected by the increasing commodity supply. Recently the US government promised to sanction Russia for potential retaliation and this has already seen a push down of stock markets and driven up gas and oil prices. This clash could cause dizzying spikes in energy and food prices, fuel inflation fears and spook investors, a combination that threatens investment and growth in economies around the world.
For Kenya’s economy alone Kenyans have been forced to dig deeper into their pockets because of the cost of fuel due to the strengthening of the dollar relative to Kenya shillings meaning that the country will spend more on imports. This has seen the cost of fuel rise by ksh.5 and a total jump in oil prices which has hit $100 per barrel.
The world’s major economies, from Russia to the US are experiencing a multi-year high in inflation levels due to shortages in the supply of commodities whose demand is growing because of lifting covid-19 restrictions. For Kenya, food prices are expected to rise while imports will suffer delay in delivery. Manufacturing Industries may experience imported inflation which could put further pressure on the shilling against the US dollar. To mitigate the ongoing war the European Union should speedily find a solution to the war to salvage the already suffering world economy caused by Covid -19 pandemic.
Peter Kipkirui |kipkiruironoh11@gmail.com
The writer is an Economist working with Maisha Bora Sacco Society Ltd.
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Availability and equality to access financial services is key for development of grass-root economies across the country. Access to timely, appropriate and affordable financial products and services promotes financial inclusion which is a key enabler for growth of businesses and for personal development of individuals. In Turkana County, Eruko SACCO Limited is on the frontline to register members, mobilize savings and pursue economic opportunities in the agribusiness sector to maximize returns for members. The SACCO which has its offices in Lodwar town has seen its membership growing overtime and is now present in all the seven sub-counties of Turkana.
The Vision of the SACCO is to be a leading community empowering organization through initiatives that promote sustainable and diversified livelihoods. Eruko SACCO is regulated by the Sacco Societies Regulatory Authority and is governed by a board of nine directors who are elected in an AGM. To execute its mandate of economically empowering its members, Eruko SACCO engages in bee-keeping and production of honey for sale, manufacturing of soap and detergents from natural aloe-turkanensis plants that grow in Turkana County and advancing loans to its members.
The SACCO is on a continuous membership recruitment exercise. For one to become a member, an application form must be completed and submitted to the secretary of the society. Ordinary members are required to pay Kes.500 to join while membership by prescription can be attained by paying an entrance fee of Kes.10, 000. Upon admission of an ordinary member, a monthly savings of at least Kes.500 shall be required from members. Members can access loans twice their Savings after a six months period of consistent saving. Loans attract an interest rate of 12% per annum and must be guaranteed by a member of the SACCO.
Eruko SACCO is a true vehicle for development in North Western Kenya and its impact is being felt right from the grass-root level. The SACCO has strategic partners supporting its development and has enjoyed stability thanks to good leadership. Start your journey of saving and unlocking economic opportunities together with likeminded people by joining Eruko SACCO. Contact the SACCO via erukoinvestco.ltd@gmail.com or call +254 718 250 315 for enquiries at Eruko SACCO.
Rick Okinda | Okinda.p@igrandbp.com
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs
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Digital migration of businesses into the online space is now a survival tactic that must be embraced by every entrepreneur who wants to keep going. You need to market, display goods, order or showcase services and get paid via digital platforms. Online presence does not necessarily imply that one closes their shop, but that you tap into the traffic users on the streets of digital media to get new customers and business partners. With Online, entrepreneurs. With online, entrepreneurs have been able to reach a larger audience and get more customers and with effective digital marketing strategies, most of them have seen the sales of their products go high.
As an entrepreneur, having social media pages for your business is not enough. It is necessary to set the priorities and objectives of your business right so that you can be aware of what you want to achieve. The advantages that come with having your business online include; selling your products, finding new customers and retainingng the existing ones. How then can you create an online presence?
List your business on a local directory. It is possible to list your business for free on Facebook, Bing or Google my business. This will help your business in a way that when people search for your business it will show up. Building a website can also be beneficial as it can have more information on the business such as opening hours, the products sold, the location of the business. The website can also include a call to action like “buy now” to encourage the customers to purchase your products. It’s also necessary to know how your customers feel about the products they bought from you so getting a review page where they can rate on the website can help you market your business. Setting up social media pages such as Facebook, Twitter and Instagram. These platforms are usually effective in connecting to customers. Social media platforms can also be very good in offering customers special deals. Finally, always use analytics to track down what you are doing and ensure if it is a marketing strategy then it is an effective one. The disadvantage that may result from having your business online is that in case your site crashes no one can access your products and sometimes customers can be impatient when the shipping of the product is delayed.
In conclusion, I believe it is the responsibility of every business to use online tools to serve the existing customers and connect to new ones while remaining relevant in the online space.
Prayer Major W. | wapukhamajor@gmail.com
The writer is an author, a creative content writer, a scriptwriter who is passionate about media and leadership.
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We live in an interconnected world thanks to international trade. This interconnectedness has always guaranteed free movement of capital and resources thereby meeting the different needs of the world’s population. International trade heavily relies on the concept of free trade and stability. As such, any instance of political instability as well as unfavourable regulations usually results in capital flight. Previously, markets have always reacted to geopolitical events and this is set to continue since political stability and free markets lay the backbone of international trade. We therefore, focus on what happens when there is uncertainty in the financial markets.
In 2017, after the nullification of Kenya’s presidential polls, the stock exchange shed more than 10% of its previous trading, prompting a halt in trading. This was majorly driven by sell-off in the listed blue-chips. Bearing in mind that our market is dominated by foreign investors, any uncertainty would result in a sell-off. This was replicated in the 2020-2021 period when most investors sought for safeguards against the coronavirus pandemic. Data from the said period indicated that foreigners were net sellers which ended up boosting local investor’s holdings in certain companies such as KCB.
Another negative effect of uncertainty in any country would result in their currency depreciating against the dollar. Since international trade is settled in dollars, any uncertainty forces sell-offs. With this huge sell-off by foreign investors, there is increased demand for foreign currency which puts pressure on our local currency. As such, it will cost you more to buy the dollar due to increased demand. This is the same effect the Russian Ruble is going through as investors and companies dump their securities.
Any country suffering from internal issues is normally isolated from the global system with ramifications such as sanctions and being shut from the global payment system. Trade sanctions might impede free flow of capital and goods as foreign companies are not allowed to trade with the sanctioned country. A case example is Zimbabwe who have borne sanctions for the longest time after the government’s infringement on property rights. Another case example is Russia who have been locked out of the global payment and settlement system (SWIFT) for invading a sovereign state.
Any uncertainty be it global or local, shall automatically result in negative effects towards the local economy. These effects often lead to isolation as capital always goes where there exists security and attractive returns.
Brian Sikuku | bransikafrica@gmail.com
The writer is an investment professional interested in financial markets, alternative investments and financial education.
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Jeremy Awori was born in Kenya in 1971 to a Kenyan father and a British mother. Whilst his father was an engineer, his mother practised law. He has two siblings; a sister and a mentally handicapped brother, whose condition he says has highly contributed to how he (Jeremy) views life and people. In his early years, Jeremy was extremely shy and started swimming to hide it. At the age of 9 he was already a professional swimmer and competed for Kenya while boosting his confidence.
After his secondary school education, Jeremy flew out to the University of Manchester and pursued a Bachelor’s degree in Pharmacy. He attributes his choice of course to the tutelage he got from his father, which moulded him into who he is today. He then worked as a Pharmacist while saving up for his master’s degree. When the time came, he decided to try something new to broaden his career options, so he relocated to Canada and pursued an MBA in Finance and International Business at McGill University.
Jeremy got an opportunity to work at Standard Chartered Bank (SCB) Canada after his MBA. The then CEO was trying his best to keep the branch operational and Jeremy performed outstandingly in his role. This led to a promotion as the head of retail banking, SCB Kenya, at only 28 years old. Soon after, he was transferred to SCB UAE, the fourth largest StanChart market then, as the head of consumer banking. Three years later he was promoted to Regional Sales Director, Middle East, South Asia & Africa. This was followed by yet another promotion to CEO and MD, SCB Tanzania, which was his last role with the bank.
At the peak of his career, Jeremy was offered two options, one at SCB Dubai and the other at Barclays Bank Kenya. His pick was based on two reasons. The first was he wanted his children to experience life at home, as they had mostly lived abroad. The second was that he was passionate about contributing to Kenya and Africa, and that is where he wanted his story to lie.And so Mr. Awori became the next CEO and MD of Barclays Bank Kenya in 2013. He confesses that the bank needed more work than he expected, but is glad that it gave him a far more challenging job. Seven years later, the bank rebranded to ABSA Bank with Jeremy still at its head.
Purity Buyanzi | puritybuyanzi@gmail.com
The writer is an aspiring Financial Analyst, passionate about leadership and mentorship
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A long time ago, Hippocrates, the father of modern medicine said, “Let thy food be thy medicine, and thy medicine be thy food.” This sentiment still rings true in our modern day. Every year in March, the Academy of Nutrition and Dietetics observe a “Nutrition Month” that stresses the importance of a balanced diet and exercise. It promotes the transformative powers of healthy food choices, by encouraging using a registered dietitian (RD) to develop and stick with a healthy eating plan.
Between what you hear on TV and read in the news, eating well can seem like a real challenge that doesn't have to be. A RD will partner with you to develop a safe and realistic eating plan that you can stick with for the long haul. To guide and motivate you, dietitians use creative and out-of-the-box strategies to help with meal planning, grocery shopping and mindful eating.
What an ophthalmologist does for your eyes, a dietitian does to keep your digestive system and body running smoothly, making sure you're getting the proper nutrients and helping you tailor an eating plan that works best for you. Whether your goal is weight loss, healthy eating, or boosting iron intake. Dietitians work in a range of fields including patient care; mostly in hospitals to offer disease-specific therapeutic interventions, community and public health, and national level to influence policy making, private sector to offer consultancy to groups and individuals, food industry, sports, and research and teaching.
Anyone can call themselves a nutritionist. However, only an RD has completed multiple layers of education and training established by the Kenya Nutritionist and Dietitians Institute. All RDs must have gotten a four-year degree; a specially designed, accredited nutrition curriculum, completed an extensive supervised program of practice at a health care facility, foodservice organization or community agency, passed a rigorous licensure exam, and maintained continued education credits throughout their career. In addition, some RDs may have certifications in specialized fields, such as sports, pediatric, renal, oncology or gerontological nutrition.
Do you want to lose or gain weight? Are you pregnant, looking to become pregnant or just had a child? Are you looking for ways to maintain your health in your older years? Are you an athlete looking to boost performance? Do you have a health condition such as diabetes, high blood pressure, stroke, any allergies etcetera? Then you need to seek the expert, science-based advice of an RD.
Argwings Chagwira | am.chagwira@gmail.com
The writer is a Registered Dietetian Nutritionist who offers consultation services in nutrition and wellness.
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According to the Population and Census survey carried out in 2019, the data from the exercise revealed that individuals under the age of 35 comprised of 75 percent of the 47.6 million total population. The survey also indicated that the labor force aged 15 to 64 years, made up for 57 percent of the total population in Kenya, of which 29 percent comprised of the youth. This shows that youths have potential capabilities of shaking up the cooperative sector and leaving a footprint in the sand of the industry for other youths to follow.
A worker co-op is a form of co-operative where the members are employees, as the management is concentrated on the commercial aspect of the business, they focus on the social-economic aspect of the workers. Worker cooperatives can provide ways for organizing new forms of work with less dependence on the employer and increased flexibility and collaboration among workers (ILO). Members contribute funds to the cooperative and share ownership costs and liabilities that include but are not limited to risks of ownership. Worker cooperatives are similar to service cooperatives in the sense that, worker co-ops are a type of service co-op offering services to other businesses.
Through the lens of the unemployment rate among the youth in Kenya that was 7.17% as of 2019, worker cooperatives which are becoming embraced globally as an opportunity to take on the service based entrepreneurial journey becomes ideal for youths with start-ups.
In addition to the benefits that a worker co-op offers to a youth in Kenya is the creation of a workspace for them to combine their talents, ideas, and perspectives to achieve common goals such as creating jobs for other youths, performing community service, or promoting workplace democracy.
What makes it successful? Yet the key components that determine the success of worker cooperatives are trust, communication, and cooperation because members form the policies that dictate the cooperative’s daily and long-term operations. Therefore, the question that should really be lingering in the mind of the youth to answer for himself or herself is not whether to join a worker cooperative or not but rather, when he or she will join one.
Natasha Kahihia | kahihianjoki@gmail.com
The writer is a young co-operator at Co-optkam Consulting and an ardent researcher in matters concerning the youth and their influence in the Kenyan society
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The repealed Sectional Property Act of 1987 was unpopular to developers because of its harsh provisions favouring the property's purchaser.Before the enactment of the Sectional Properties Act of 2020, developers of off-plan townhouses and sectional units used to register the specific units under long term leases which amounted to ownership. The current law is appealing and attractive to the developers due to modification of harsh provisions such as the one that required the property buyers to deposit the initial amount with a trustee instead of paying it directly to the developer.
The Sectional Properties Act, 2020 applies in respect of land held on freehold title or on leasehold title where the unexpired residue of the term is not less than twenty-one (21) years, and there is an intention to confer ownership. The law requires registration of sectional plans, which ought to describe two or more units and be presented to the Land Registrar.
The new law protects the purchaser by establishing a corporation that allows the unit owners to manage the apartment, flat or townhouses. The Act provides that a sectional plan should be accompanied by an application for registration of a corporation and a list of the owners of the units, which can be updated from time to time. Once a sectional plan is registered, the registrar is required to close the register of the mother title of the land where the sectional property sits and open a separate register for each unit described in the sectional plan.
The registrar will then issue a certificate of title if the property is freehold or a certificate of lease if the property is leasehold in respect of each unit of the sectional plan. The owners will then acquire shares in the formed corporation to own the common spaces as tenants in common in shares proportional to the unit ownership. The above law streamlines owning sectional properties in Kenya. Consequently, more investors will venture into the real estate business as developers of sectional units, improving the economy and making it easy to own homes in Kenya. The unit owners will also be able to take a loan using the certificate of ownership as security, hence boosting financial inclusion in the country.
Onyango Bwire Boaz | bwireboaz@gmail.com
The author is an enthusiast in research and analysis of emerging legal issues that affect business
Environment both in Kenya and globally.
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The webinar presenters were: Renu Hunjan a real-estate marketing strategist, Austin Waga head of mortgagees Stanbic bank and Adeel Madhani a legal expert practicing with Mohamed Madhani & Co Advocates. Together, these panelists equipped attendees with critical information on matters property investment. An investment possession is a real estate property, purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property, or both. The property may be held by an individual investor, a group of investors, or a corporation. For third parties, a license allows access to a property at a fee. It could also be a long-term endeavor or a short-term investment. Investment property is also a term that may be used to describe other assets purchased for the sake of future appreciation such as art, securities, land, or other collectibles.
Robert Kiyosaki says, “Real estate investing, even on a very small scale remains a tried and true means of building an individual’s cash flow and wealth”. People, especially Kenyan investors have always had faith in real estate. Anyone interested in property investment of whatever kind, ought to establish at full length, the when, why, what and how of what they desire. The legal requirements for anyone interested in the ownership of any investment are an identifying document (ID or Passport) and a Kenya Revenue Authority (KRA) pin. It is important for any prospective buyer to do their due diligence before any commitment; this involves a thorough background search, finding someone locally to physically check things on the ground as photos can be deceptive at times, hiring an independent advocate, personally checking on the property developer, pegging payment on construction milestones and if possible having the bank do it's due diligence too.
It is safer and easier to purchase properties that are fully managed. It is also critical to consider whether one’s goals can still be achieved, especially putting into consideration a country’s tax obligations. For land purchase, it is important for one to have a physical title deed and also ensure a search is done to verify that they are the rightful owner. For other properties, it’s better to have a sublease than a share certificate.
Finally, those interested in mortgages ought to understand the bank requirements and be aware that the lending bank has to consider their residential status and whether their income is sustainable and verifiable.
Esther W. Njaramba |njarambaesther3@gmail.com
The writer is a passionate Counselling Psychologist who works with individuals and groups to see to it that they lead satisfying and happy lives
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Sinek describes his book as one ‘about a naturally occurring pattern, a way of thinking, acting and communicating that gives some leaders the ability to inspire those around them’. He depicts different situations where one person or group got ahead of another just because they started with the end in mind. Martin Luther King, the Wright brothers, and Apple are such examples. He later goes on to explain why inspiration, as opposed to manipulation, is a long-term strategy in any endeavour. Unlike inspiration, manipulation of employees and consumers can only last so long and needs to be repeated over and over. This, therefore, leads to the core of inspiration: Why.
To help readers understand, he uses The Golden Circle, which is in essence three circles, each inside another. The outer circle shows what, which everyone has figured out. These are the products, services, and functions of a company or person. The middle circle indicates the How, which is the process or strategy through which said services are offered. The most crucial aspect however is the innermost circle, indicating why…Why do you do what you do? It alludes to purpose more than anything else, and once discovered and defined allows one to think and act from the inside out. Biologically speaking, it is also the ‘Why’ (feeling) part of a human brain that informs decisions and behaviour, not the ‘What’ (thought) part. Having understood the various elements of the Golden Circle, the key now lies in implementing them in the right order: 1. why do it? 2. How to do it? 3. What (Result of the Why)?
According to Sinek, clearly defining the Why of a business or idea attracts people of the same mindset and differentiates believers from passers-by. After this, what follows is defining the ‘how’ of the idea, which basically means having a practical and realistic person or mindset to give guidance. The how puts the why to the ground and produces results. Once these two are established, the next and greatest challenge begins: staying true to the Why.The ability to remain consistently committed to the why is what makes successful leaders. It is what inspires others to follow. The Why becomes the metric by which decisions are analysed? The result of this is that we start assessing ourselves from an internal perspective, seeking to be better, anticipating to outdo ourselves every day!
Purity Buyanzi | puritybuyanzi@gmail.com
The writer is an aspiring Financial Analyst, passionate about leadership and mentorship
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Hosted by Bemerc Consults on 13th January, 2022
This was a master class webinar to help any sales person increase their sales from what they’ve previously sold. The presenter was Mercy Maina Kimani, the Performance Coach and Team Leader at Bemerc Consults. In the Webinar, Mercy shared essential pillars necessary for the realization of any business vision, the first one being a consideration of where one is coming from and where they intend to go hence sales goal setting. The goals have to be SMART in that they are Specific in terms of the processes and resources , Measurable by objective data, Attainable in that they can be achieved, Relevant to the vision and Time bound by a deadline.
Once goals are set, a goal road map for each objective ought to be established. In the road map for each goal, one should consider the obstacles that are likely to hinder the achievement of that goal. It is healthy to view the obstacles as hindrances within one’s capacity, not some external locus of control. That perspective of analyzing obstacles will pave the way to the solution step of how to overcome the obstacles so as to realize the goal(s). If coming up with a solution proves difficult, then consultation with a coach, mentor or counsellor then comes in handy.
Another thing to consider is feedback parameters for one’s business. Reviews, whether done daily, weekly or monthly help a great deal in providing feedback. They provide a platform to analyze one’s plan(s) versus the reality of what they have been able to execute in that plan hence prepare better for tomorrow’s goals. Maximizing repeat sales is also a winning strategy for any serious salesperson. These are things customers buy in order to replace the same services or products they had bought and consumed previously. Customer loyalty, that is trust plus quality customer relationship spearheads repeat sales. If one’s business model does not allow repeat sales due to its nature, then strategies such as leads and referrals would help to keep the business going.
In conclusion, the webinar attendees were also taught the proven ways to position themselves as trusted advisors (focus on mutual benefit) rather than as product pushers (focus on price) . A trusted advisor is characterized by their communication skills, optimistic attitude, self-control, professional competence, confidence, customer-focused service provision and value addition. These attributes need to be seen at all levels of interactions; personally, relationally and professionally.
Esther W. Njaramba | njarambaesther3@gmail.com
The writer is a passionate Counselling Psychologist whose work is to help individuals and groups lead satisfying happy lives.
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The economic viability of the COVID-19 vaccination program
The emergence of COVID-19 has posed an unprecedented challenge to the world’s economy and the healthcare delivery system. There has been an emphasis on the use of non-pharmaceutical measures such as physical distancing, hand washing, and wearing of masks to reduce the spread, but efforts have been made to produce vaccines that will play a role in reducing transmission.
At the peak of the pandemic, most countries worldwide resolved to a suspension of their economic activities, popularly known as “lockdown” with the aim of stopping the spread of Covid19. This led to severe economic losses as governments in sub-Saharan Africa were cut off from revenue due to freezes in economic activities and tax relief measures to enable businesses to survive. IMF data available up to December 2020 revealed that the pandemic caused a median 15% drop in the monthly tax revenues compared to the previous years.
What is the economic viability of the COVID-19 vaccination program? Currently, the statistics of the reported COVID-19 cases in Kenya are at 385000, with a death toll of 5621 since the onset of the pandemic. There has been an unequal distribution of COVID-19 vaccines worldwide. Wealthier countries have paid trillions in stimulus to prop up faltering economies. Now is the time to ensure vaccine doses are quickly distributed, all barriers to increasing vaccine manufacturing removed, and financial support is secured so that vaccines can be distributed equitably and a truly global economic recovery can occur. The government of Kenya has set up a strategy that aims at vaccinating the entire adult population by mid-2022. One of the drawbacks of this initiative is that the vaccines available are multi-dose vaccines that require a cold chain storage system to be viable by the time they get to the individuals. We are faced with the challenge of inadequate storage facilities.
Nevertheless, the government of Kenya has made efforts to ensure that vaccines are available to all. It is a good move as it will reduce the overall number of people who succumb to the infection. The economic benefit it will have is that there will be no lockdown because we have noted a decrease in the reported number of new cases since the start of the vaccination program. One fact remains: when we get the vaccine, we will still have to use non-pharmaceutical measures to protect ourselves until we all acquire herd immunity. A healthy nation is a wealthy nation.
Prayer Major | wapukhamajor@gmail.com
The writer is a student at Karatina University pursuing a Bachelor of Science degree in nursing.
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Brief Overview and Impact on Businesses in Kenya
The Statute Law (Miscellaneous Amendment Act) 2019 amended the Companies Act 2015 to require all companies to introduce a register of beneficial owners. To effect the amendment, the Government enacted the Companies (Beneficial Ownership Information) Regulations, 2020 as subsidiary legislation to the Companies Act on 18 February 2020. The Business Registration Service (BRS) issued a public notice notifying all officers of companies and authorized persons that the beneficial ownership E-Register had been operationalized with effect from 13 October 2020.
Every company in Kenya must now lodge a register of beneficial owners with the Registrar of Companies. A beneficial owner is defined in the Regulations as any natural person who ultimately owns or controls a legal person or whose behalf transactions are made. A beneficial owner can also be a person who directly or indirectly holds at least 10% of the issued shares in a company. It could also be a person who possesses the direct or indirect power to appoint or remove a director of the company or indirectly or directly exercises significant influence or control; and directly or indirectly exercises a minimum of 10% of the voting rights in a company. The register of beneficial owners should contain particulars of each beneficial owner, including the date when a natural person became a beneficial owner, the date on which a person ceased to be a beneficial owner, and any other relevant details the registrar may require.
The implications of the Regulations on the business environment in Kenya are that Companies in Kenya will now have more significant administrative burdens and costs associated with keeping a register of members and creating and maintaining a record of beneficial owners. The drafting of legal documents relating to ownership, such as shareholder agreements and, in particular, reserved matters, will need to consider concentrated shareholding structures and the definition of control. The operationalization of the E-Register is likely to impact a significant amount of ongoing transactions by tying other services offered on the BRS to beneficial ownership compliance. The positive impact of these regulations is that the established E-Register of beneficial owners will help create transparency in ownership of companies in Kenya hence reducing corruption through proxies, money laundering, and other syndicates committed behind the corporate veil. The regulation is still new; hence more time is needed to assess the implications of the disclosure obligation on companies.
Onyango Bwire Boaz | bwireboaz@gmail.com
The author is an enthusiast in research and analysis of emerging legal issues that affect business
Environment both in Kenya and globally.
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Over the years the International Cooperative Alliance (ICA) has acted as the voice of cooperatives worldwide. Established in 1895, ICA represents an estimate of three million cooperatives. It’s a platform for cooperatives to collaborate more effectively through networking and exchange of ideas. ICA has its presence in Africa and the continental headquarters are in Nairobi, Kenya.
A cooperative is a people-centered enterprise jointly owned and democratically controlled by and for its members (with a common bond) to realize their common economic, social, and cultural needs as well as aspirations. Even then, it is important to note that with changing times we have cooperative societies with an open bond (they might not be having same background) but they have a common goal.
The bloodline of cooperatives is collaboration managed by its stakeholders who may include members, workers and associations. According to the world cooperative monitor, at least 12% of the world’s population are members of cooperatives. Labour statistics also indicate that cooperatives employ approximately 10% of the working population. The three hundred largest cooperatives mutual collectively generate $2.146 billion in revenue while providing the services and infrastructure that society requires to survive.
Poverty and food insecurity problems are better solved through cooperatives due to the strength in unity that comes with these movements. International Labour Organization (ILO) estimates that about half of the world’s rural agricultural produce is sold through cooperative societies. This increases revenues and local expertise by creating and passing on business experience because they are run by and for local people. Profits are reinvested in the cooperative, the local community, or distributed to the cooperative’s members. Strong cooperative networks allow practitioners from all over the world to share their knowledge and best practices. Cooperatives are also pivotal in creating decent jobs. They employ about 100 million people worldwide, and 3 billion rely on them for their livelihood.
Providing low-cost financing credit unions and other financial cooperatives provide long-term financing to persons who are unable to access traditional banks. Credit unions offer a safe approach to savings and loans because they are run by and for people in the community, and they lend cautiously. Cooperative businesses are based on the philosophy of mutual help. They aren’t just about uplifting the members economically, but also morally and socially. Membership instills a spirit of independence, cooperation and tolerance.
Livingstone Otieno | malivinto@gmail.com
The writer works with cooperative societies as a provider of solutions that help in stabilizing management and operations of SACCOs.
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Have you been sipping green tea, lemon tea, been on fad diets, skipped some meals, or been practicing intermediate fasting in an attempt to cut down your weight? As mentioned previously, the basic premises to healthy living is eating a balanced diet while remaining physically active, and burning more calories than those consumed. The seemingly “simple” and healthy road to weight loss is actually an arduous and long-term process. Therefore, it becomes enticing to substitute sensible diets and exercise regimens with unhelpful ideologies such as fad, Paleo, Atkins, etcetera, that promise quick results, but have deleterious outcomes.
A popular myth on weight loss is taking hot or warm water mixed with lemon. Some believe that the water temperature will help burn body fats. This is not biologically possible. Water is important for our Hydration, and Healthy Kidneys, but no matter its temperature, it cannot burn body fats. Skipping meals and taking less than the recommended 3 meals a day can actually result to an increase in weight rather than the expected weight loss. The body needs energy for daily use. When denied, it switches to a coping mechanism. Taking the regular 3 meals a day ensures enough supply of energy from the carbohydrates we take, while skipping meals makes the body to preserve as much as it can from what we take in order to use it through gluconeogenesis as a source of energy. This facilitates weight gain.
Fad diets are clearly extreme and often irrational plans that lack valid evidence and scientific research. Aside from being unhealthy, they are ineffective. High-fat diets promote short term weight-loss, but most of the loss is caused by dehydration. As the kidneys try to destroy the excess waste products of fats and proteins, water is lost. High fat diets are low in calories, causing the depletion of lean body mass with little fat loss. Drastic reduction in carbohydrates causes the body to believe that it is being starved. Continued practice of these extreme diets risks one to CVDs and may cause irrevocable damage to the liver and kidneys.
Seeking hotkey weight loss aids is ineffective however long you’ll persist. A proper diet should place long-term health before immediate results.Reducing caloric intake enables one to maintain the body weight, whilst physical activity enables one to burn the excess body fat and therefore, weight loss. This is a long-term journey that requires discipline. Don’t buy deceits!
Argwings Chagwira Muliro | am.chagwira@gmail.com
The writer is a nutrition and wellness professional who is focused on conducting detailed nutrition consultations and creating personalized meal plans to meet the needs of his clients
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The Nairobi Securities Exchange is one of the fastest developing bourses on the African continent attracting foreign investors looking to tap into emerging economies. The last decade saw several listings as well as roll-out of new products such as derivatives and the commissioning of a new trading system. In 2021, the bourse received authorization for launching day-trading. Simply put, Day-trading is the phenomenon whereby an investor/trader buys and sells their shares within the same day. Before, one had to wait for three working days for settlement of any trade. Day-trading is therefore poised to boost trading activity as well as attracting the youth into stock trading.
Despite the funfair on its launch and the 5% discount offered on the second leg of trading, day-trading transactions only accounted for 3.4% of the trades through January. In a market that trades about Kes.22bn worth of shares monthly, day-trading only saw Kes.784 million worth of shares traded. This investor apathy could be attributed to the following:
High transaction costs: When trading on the NSE, there are several fees levied by the broker, the regulators as well as the exchange. This translates to about 2% of the value transacted. With the NSE only offering a 5% discount on a day-trading transaction, the fees are seen to erode any little gains realized. To put this into perspective, the price of a stock has to gain by more than 5% within the day to incentive a trader to sell it within the day. This is a rare occurrence bearing in mind that only a handful of blue-chip stocks change hands daily thus a 5% gain hardly attainable.
Inactivity on some counters: in some of the listed companies, major shareholders control as much as 70% of the share leaving only 30% available to the public. Of the free float say half of it is held by institutional investors (funds) leaving a very small portion of the shares available to the public. As such, counters like WTK, Kapchorua, Kakuzi and Limuru Tea can go for days without their shares changing hands. The floor is therefore left with very few market movers such as Safaricom, Equity and KCB.
To ensure that day-trading takes off, the NSE has to lower the transaction costs by say 50% as it is in developed markets. Also, the bourse ought to ensure adequate free float as well as attracting new listings. This will see investors diversify their holdings and take up day trading which will boost the bourse’s revenues.
Brian Sikuku |bransikafrica@gmail.com
The writer is an investment professional interested in financial markets, alternative investments and financial education.
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From being a young ambitious immigrant to rising to the World’s Most Powerful Women lists, Indra has seen it all. Yet despite the challenges she faced under the different labels she wears, she has somehow managed to rise graciously and leave her mark in the corporate world and beyond. But what exactly has her journey been like?
Sixty-six-year-old Indra Nooyi was born in Madras State in India. After her secondary school education, she attended the Madras Christian College and graduated with a Bachelor’s degree in Physics, Chemistry, and Mathematics in 1974. Two years later she got her Post Graduate Diploma from the Indian Institute of Management, Calcutta. Nooyi then moved to the United States in 1978 to pursue a Master’s degree in Public and Private Management from Yale School of Management.
Nooyi’s career started in India where she held product manager positions with two companies. While in the States, she worked with companies like Boston Consulting Group, Motorola, and Asea Brown Boveri before joining PepsiCo in 1994. She was the Senior Vice President, Strategic Planning at first, and then became the company’s President and CFO in 2001. Twelve years after joining Pepsi, she was named CEO, allowing her to shape a company she had come to personalize as her own. With Indra in charge, PepsiCo’s revenue moved from $35 billion to $63.5 billion, an 80% increase. In her own words, market capitalization rose by $57 billion whilst shareholders received about $79 billion in cash returns. Indra afterward resigned as CEO in 2018 and as Chairman in 2019, fulfilled and ready to venture into different fields.
Despite her various achievements as CEO, what is most notable about Indra’s leadership is the ‘Performance with Purpose’ strategy she used. She decided to not only think about the long-term growth of the company but also achieve it in a way that is friendly to society and the environment. Thus she began projects like using recyclable material and producing healthy snacks for consumers. She has also advocated for executives that are involved in a company head, heart, and hands. In modeling the heart aspect, she got to know employees’ families and built an environment that allowed young family builders to also be important contributors to work, without having to sacrifice either. This is well captured in her recently published memoir: My Life in Full: Work, Family, and Our Future, a must-read for executives and laymen alike!
Purity Buyanzi | puritybuyanzi@gmail.com
The writer is an aspiring Financial Analyst, passionate about leadership and mentorship
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Create far from home win everywhere
Reverse innovation is the main subject to this exquisite book as the authors strongly believe it is the pathway to success, especially for emerging economies. History has it that multinationals would innovate in wealthy countries like the USA and then sell their products to poor countries like India; reverse innovation according to the two authors is working against that historical grain by doing the exact opposite. They believe it is time that innovation begins in developing economies as it trickles up to developed countries.Therefore, instead of exporting, why not innovate in emerging economies? In other terms, reverse innovation involves meeting the needs of developing nations by producing goods as inexpensive models and then repackaging the same as low cost innovative goods for developed nations to buy.
Dominant logic is a concept quite discouraged in this book as dated thinking inhibits reverse innovation. It challenges leaders and institutions to challenge their status quo and only work with past strategies with clear revision and critical analysis. This is in tandem with George Santayana’s quote that goes “those who do not remember the past are condemned to repeat it”. Reverse innovation begins by identifying need gaps in any space that one desires to see transformation. There are five need gaps discussed in the book: the performance gap, the infrastructure gap, the sustainability gap, the regulatory gap and the preferences gap. These gaps between emerging economies and the rich world are so substantial that emerging economy needs can only rarely be addressed simply by making adaptations to rich world products. This therefore calls for capturing opportunities in the poor world by starting from scratch (clean-slate innovation) in order to maximize trends that will close the gaps.
It is critical to remember that reverse innovations flow uphill in two ways: marginalized market which happens immediately and mainstream market which takes time. All innovation is about assessing needs and developing solutions hence the crucial integration of sales and marketing. Strategy, global organization and project organization too are good markers to always look at when innovating in reverse.
In conclusion, reverse innovation efforts test the commitment, resilience and passion of the Innovators. Equally they test the gumption and long term vision of whom the innovators report to and of the organization as a whole. The goal should always be “value for money to value for many” reverse innovation is not optional it is the oxygen!
Esther W. Njaramba | njarambaesther3@gmail.com
The writer is a passionate Counselling Psychologist whose work is to help individuals and groups lead satisfying happy lives.
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Bigger companies set up accounting departments which are fully supported to execute book keeping, recording of transactions, reconciliation of books and preparation of financial statements consistently and continuously. They also set up control mechanisms through policies that govern the management of resources, procedures for resource utilization and a calendar for performing functions such as budgeting, large scale purchasing, stock taking and reconciliation of bank statements. Internal audit teams are also key in helping the accounting department and other personnel involved in operations to adhere to policies of your business regarding financial management.
Regardless of size, the accountant for your business should be competent enough to understand the Generally Accepted Accounting Principles (GAAPs), International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and for public institutions and bodies; your accountant should have the full knowledge of International Public Sector Accounting Standards (IPSAS). These set of policies will help in creating a business whose financial reporting is of good quality and reliable for use in decision making by owners, managers, the tax man and the strategy team.
While it is desirable to all entrepreneurs that they organize their books of accountants professionally, it is also important to note that hiring an accountant may not be affordable to many small and medium sized entities. These implies that alternative routes to the Promised Land should be employed. The first route is installing accounting software in the computer of a staff member in charge of operations or administration where an accountant is absent. Accounting software such as QuickBooks, Sage, Tally and SAP are easy to use given proper training to your staff members. Second, train your staff to accurately capture data and to conduct librarianship for your accounting files for easy retrieval. You also need to train your staff on how to navigate the KRA itax portal, how to prepare budgets, how to do bank reconciliations and how to run ETR receipts. Training works well for a fairly big staff of at least five people. For smaller companies, the best option could be outsourcing a firm that can perform tax advisory, bookkeeping and financial management at a fee. iGrand Business Plans Limited is one such firm and your accountant is reachable via okinda.p@igrandbp.com.
Rick Okinda | okinda.p@igrandbp.com
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs.
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Lodwar is the administrative capital of Turkana County in North-Western Kenya which is characterized by moderate to high temperatures throughout the year. When driving in the roads of this vast county, you’ll meet epic scenes of hills, semi-desert vegetation, cluster settlements and goats enduring the heat and sun that falls in this semi-arid region. The lands of this sunny countryside are split by great rivers and boarders the shores of the world’s largest desert lake. When touching down at Lodwar Airport, you’ll see the magic Turkwel River flowing across the town. This is a scene to behold for a lover of nature. By the time you land in the town and begin your stay there, you’ll be feeling the heat and your body will be in need of constant hydration. This experience inspired the establishment of Kanan Mineral Water Limited that harvest, purifies and bottles water for human consumption.
The factory sits on a big aquifer known as the Turkwel Gorge. Waters from its ever running wells are mineral-rich and highly recommended for human consumption. Purification of water is done in the Lodwar plant right from harvesting through the processes of sedimentation, filtration, reverse osmosis, ultra-violet treatment, ozonation, bottling and branding. Packing of water bottles for distribution is also done at the factory and each bottle is sealed to protect consumers from counterfeit products. Kanan Mineral Water is distributed widely across Turkana County. Its waters have a pleasant refreshing taste that keeps one alive throughout their stay in Lodwar.
Choosing to consume Kanan Mineral Water is not only a choice for quality water but also an endorsement of Made in Turkana products. The community at Kanan area where the factory’s acreage lies benefits from free mineral water by the factory through a tap installed at the gate. This has transformed lives of the factory’s immediate neighbours and has made Kanan Mineral Water a strong brand among both locals of Turkana County and visitors. Entrepreneurs behind this business are committed to ensure the water is natural, safe, quality and affordable by all measures and standards in the land. For me, it is the imagination that an aquifer exists in the semi-arid Turkana County and the reality of actually drinking purified water from it. I have many reasons why I love visiting Turkana and drinking Kanan Mineral Water is one of them.
Rick Okinda | Okinda.p@igrandbp.com
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs.
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Happy New Year! Yes, another year full of hope, ambition and determination…not forgetting New Year Resolutions. Some structured and well written down, others as vague ideas in our minds of dreams we hope to realize. The underlying factor to their success or failure is our habits and Duhigg helps us unravel this aspect in a captivating and unforgettable manner.
First off is understanding what habits really are. To explain this, he summarizes every habit into a ‘Habit Loop’. These are the 3 stages that are critical in forming a habit, good or bad: A cue, a routine and a reward. A simple example is feeling stressed (cue), smoking (routine) and feeling relaxed (reward). Understanding these 3 aspects is key to understanding why we do what we do and changing or enforcing them. Which leads me to my next point: The Golden Rule of Habit Change: You cannot extinguish a bad habit, you can only change it. Duhigg put forth that in order to change a habit, only the routine needs to change. To do this however, we first need to understand our cues, which means asking questions like ‘why do I feel bored?’, ‘why do I crave this?’ and ‘how else can I satisfy this?’. From the previous smoking example, one can decide to go swimming or hang out with friends to get the same reward (relaxation/stress relief).
Another element in the habit making process is realizing that we have what Duhigg calls Keystone Habits, which when focused on affect other areas of our lives. To be fit for example, exercising alone ends up affecting our eating habits, sleeping patterns and so on. Concentrating on such a habit therefore gives better results, both individually and corporately. Cultivating such habits however requires immense willpower, but once tamed, it becomes automatic and increases one’s productivity. One key to strengthening willpower is undertaking difficult tasks that cause us to experience delayed gratification, like hitting the gym. The second is mentally preparing for worst-case scenarios and planning a routine to get around them in order to achieve our goals.
Finally, belief that something can truly change is the wheel that keeps the habit going. Having people that believe in and with you is even better. So why not join a book club this year…or go hiking with friends! Remember: The difference between who you are and who you want to be is what you do!
Purity Buyanzi |puritybuyanzi@gmail.com
The writer is an aspiring Financial Analyst, passionate about leadership and mentorship
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The guest speaker in this webinar was Mary Kimonye the Principal Secretary State Department of Public Service and also the CEO of Brand Kenya.
Branding is the purposeful and deliberate process of distilling, defining, creating and packaging one's self-identity and image which are the two key pillars of branding. Branding allows one to tell their story as they'd want it to be told as well as establish oneself as an expert and leader while connecting with others in the industry. It is critical to mention that branding equals identity plus image. Identity is internal, it is about one's personal definition; their true self and appreciation of who they are. Image on the other hand is external; what others see, think and perceive you to be, based on your projection to the world. It comes about with the choices, words actions and courses of one in life. It answers questions such as: Who is feeling your story? When your name is mentioned what associations come to you?
Once the identity and image is established, it is necessary to clothe one's brand with a brand identity. The packaging of a brand is what is left speaking after close of business. It is the silent salesperson. A brand identity can be in form of a logo, colour, anthem, tag line among others. Another important concept when it comes to branding is the brand essence also known as a sweet spot. What best thing are you known for? Once a brand has established its sweet spot, it begins to attract attention, people, resources and networks hence soft power.
The building blocks of a brand include: the ability to know one's place in the world that is unique; the ability to know when to and not to speak who to speak to and who not to; the discernment to take on assignments one has skills to handle; having competencies that are well packaged and consistent; the ability to say no and mean it and being true to self.
The steps towards a successful brand are: clarify your identity; define the market you want to operate in and the target audience; understand the competition; communicate your goals and do so consistently. In conclusion, a good brand lives in the hearts and minds of the people; have a brand proposition that speaks for the mother brand any other time you have more than one product.
Esther W. Njaramba |njarambaesther3@gmail.com
The writer is a passionate Counselling Psychologist who works with individuals and groups to see to it that they lead satisfying and happy lives.
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In 2021, news of the GameSpot's short squeeze and the collapse of Bill Hwang's Archegos Capital hit headlines of financial papers as top and remarkable stories. This got me curious on what to anticipate in 2022 for African Capital and Money markets. Here are some of the trends to watch out this year;
Foreign Direct Investments in African Start-Ups: The year closed on a high with Nigeria and Kenya attracting huge funding from global venture capital firms. In 2022, we expect to see more fundraising as these start-ups scale-up their operations. In January alone, Kenyan start-ups; Zanifu Capital, Poa Internet & Copia have secured funding to a tune of $79 million. With this expected to go on in the year, the countries to watch out for are Nigeria, South Africa and Kenya.
Digital Currency Uptake: With crypto and digital currencies becoming a common phenomenon globally, countries are looking at ways of rolling out their digital currencies. El-Salvado led the race by being the first country to adopt bitcoin as a medium of exchange. Everywhere, central banks are invested in research and drafting regulations as they prepare to launch their digital currencies.
Banking Sector Performance: With normalcy returning after a two-year Covid-19 pandemic, business performance is poised to record significant gains. One Sector worth reporting shall be Banking. The pandemic forced these institutions to conservatively write-down their loan books as they restructured most of them to ease their clients' burden. This saw a dividend freeze and abnormal profit declines. With the pandemic behind, banks have begun recording profits every quarter and by the time they publish their books, this previous year's performance is expected to be one of the best. More focus will be on central banks' guidelines on the capital requirements and dividend issues.
Mobile money: One of the most significant innovations to hit our continent is mobile money. The pandemic saw the amount of cash transacted via mobile money hit new highs. With resumption of transaction fees, the bottom-line of telcos and other licenced players is expected to increase. This will also spur competition as other financial institutions especially banks scramble for a share of these monies. A good example is Equity Bank's till that allows for business payments across different
networks. It will be of great interest to see how it takes on Mpesa's dominance as it offers a
one-stop shop for business and customers to transact directly from their bank accounts.
Credit to SMEs
Brian Sikuku |bransikafrica@gmail.com
The writer is an investment professional interested in financial markets, alternative investments and financial education.
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Cotton was once referred to as white gold in Western parts of Kenya where it was grown by many farmers. In the year 1985, national cotton production hit an all-time peak of 14,000 MT. This was however not to Kenya’s full production potential which is now estimated at 50,000 MT when some 350,000 ha of the country’s land is put under cotton growing. Production of cotton in Kenya has continued to fall for reasons such as liberalization of the sector and withdrawal of government from the provision of credit facilities, farm and industrial inputs. Collapse of cotton prices both locally and in global markets has also led to thousands of cotton growers abandoning the crop.
Cotton ginneries play a key role in the value chain of cotton production. In Kenya, many farmers are far away from ginning companies resulting into the use of middlemen to collect cotton from farms for sale at the ginnery. Other ginning companies that had been established in the 60s and 70s collapsed due to political interference in the cotton sector and fall in cotton production. Cotton farming in this decade and coming ones need to be re-organized through union of farmers in cooperative movements and there cooperation with county governments to fix weaknesses in the value chain.
While a good number of counties in Western, Nyanza, Rift Valley, Eastern and Coast regions form the cotton growing districts of Kenya, it is imperative to note that prices across all these zones are not good for the farmer. According to a study by Kenya Agricultural Research Institute (rebranded to KALRO); profit margins per hectare of cotton range from Kes.1,614 to Kes.12,520 with a buying price of Kes.20 to Kes.25 per Kg of cotton. This to a farmer with other options such as growing maize as a food crop appears to be a zero-sum game thus growing of cotton becoming unattractive. The Ministry of Agriculture and the Cotton Development Authority (CODA) have a role to play in de-risking cotton production through extension services such as offering technical packages for pest control, mobilizing markets locally and abroad, mobilizing funding and implementation integrated crop management strategies that have been crafted through research and previous practice of cotton production. Kenya can bank on cotton as a major cash crop that has potential to revive the textile sector as well as other service sectors that fall in its value chain.
Rick Okinda | Okinda.p@igrandbp.com
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs.
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Kenya will be going into polls in 7 months’ time hence there is a feeling of anxiety on who will be the next head of state and government. The uncertainties that come with the campaign period and the aftermath of the voting day impact negatively on the country’s economy. The country is already experiencing economic growth slow down since most investors are not assured of the peace and political stability.The worry is as a result of repeated violence occurring after each general electioneering period.
Electoral laws and the electoral justice system of a country plays a crucial role in having free, fair, transparent and credible elections. The constitution and the same laws ensure a peaceful transition of leadership from one regime to another. Among the key electoral laws that we have in Kenya are the Constitution of Kenya 2010, Elections Act, Elections Offences Act, IEBC Act, Political Parties Act, Elections Campaign Financing Act, Leadership and Integrity Act, and others.
The system of governance in Kenya is the Presidential system while the electoral system is a majoritarian system where the winner takes it all. The above electoral system is said to be the major cause of violence after each election cycle because the losers feel left out in the new government formation. The violence and fracas that crown the end of the electioneering period is considered the main cause of economic slow-down. In addition, the other consequent reasons are reduced taxes, increased short-term cash oriented expenditure to popularize the incumbent candidates and postponed crucial decisions that affect the economy.
Reduced borrowing from financial institutions resulting to slow credit growth is another reason. Reduced borrowing and lending is attributed to massive economic projects slow down by industrialists and businessmen. The project developers usually pause the initiation of new megaprojects to wait for political temperatures to cool down and return to normalcy after voting and taking over of leadership by the new regime. The financiers remain adamant to issue long-term loans since any unforeseen destruction may happen to the immoveable properties charged to them as securities for the loans. The last reason for economic slowdown during electioneering period is increased inflation due to allot of cash in circulation chasing over limited stock of goods. The above mentioned laws are meant to facilitate expedient and smooth transition of governance and avert more harm to the economy.
Onyango Bwire Boaz| LLB, KSL Dip.|bwireboaz@gmail.com
The writer is a Constitutional, Family, Conveyancing, Labour, Commercial and Corporate law practitioner at Oundo Muriuki & Company Advocates, Westlands – Nairobi.
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What makes a country great? Is it the authority of its government, size of its economy, power of its military, unity of its people, riches of its national culture or there’s something else? In the East African Region, Kenya is envied for its fast growing economy characterized by vibrant towns and busy ports of call for road, rail, sea and air travelers.On the flip side, 35.5% of Kenyans live below a dollar each day thus falling into the category of poor humans. Kenya’s poverty index is worsening by day and food insecurity has become a threat to lives of many Kenyan people and livestock.
Poverty for lack of food, water, clothing and healthcare is poverty of dignity. This is what Kenyans are facing in a regime that is busy constructing long kilometers of roads, a railway line to the wilderness and health facilities with no doctor’s and drugs. President Uhuru Kenyatta is on record claiming success in economic growth by GDP indicators showing a rise from a 4.4trillion shillings economy in 2013 to 11trilion in 2021 as per his reports in the state of the nation address (SON2021). While the president’s report maybe skewed to win him legacy, there’s more to ask about this legacy when poverty index in Kenya increased from 38.9% to 53% simultaneously with the reported GDP growth rate. My submissions in this column do not seek to make readers forget the importance of infrastructural development in a country. I am however vouching for protection of economic and social rights of all citizens by the government as a top priority over roads, railway lines, ports and building of great cities. It is the protection of these rights that will result into freedom from hunger and the development of an effective universal healthcare program that knows no discrimination between the haves and the have nots.
According to the Oxford Poverty and Human Development Initiative (OPHI), people in Kenya are significantly deprived in the living standard dimension. In a nutshell; economic growth is an important means to development rather than an end in itself. Governments should thus focus not only on investment in transport, manufacturing and housing infrastructure but also invest in food production, healthcare and areas of direct impact to the dignity of its people. Mahatma Gandhi would summarize this column by his famous quote, “The greatness of a nation can be judged by how it treats its weakest member.”
Peter Kipkirui |kipkiruironoh11@gmail.com
The writer is a Kenyan economist working in the cooperative movement space.
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Businessperson, entrepreneur, international public speaker and author Vusi Thembekwayo was born in 1985 in South Africa. He comes from a poor Christian family and was raised by his mother after his father was killed in front of him when he was only 13. Barely managing to get through his preliminary years in school, his dire financial situation caused him to drop out of his first year in university. His first company, Global Professionals South Africa, was then birthed, allowing him to get through his Management Advanced Program at the University of Witwatersrand. Immediately after that, in 2010, he enrolled for a PDBA at Gordon Institute Business School and a Corporate Finance course with INSEAD. Later on he got his MBA from Hult International Business School.
Vusi has exponentially grown in his career, believing that what anyone else has achieved can be achieved. His career first began in public speaking, when at 17 he was ranked number 1 and received third place in the world at the English-Speaking Union International Competition. He then learnt how to make his talent work for him and has reaped immensely from it. While learning about business, he ended up learning entrepreneurship instead and has founded several companies, the most famous one being MyGrowthFund Venture Partners where he is the CEO. Out of this is his well –known mentorship program dubbed #Top40, aimed at identifying, funding and mentoring promising African entrepreneurs. There is also an entrepreneurship masterclass he runs with the aim of passing on the knowledge and skills he has amassed for success.
Along the lines of mentorship, Vusi has been able to author 2 books: The Magna Carta of Exponentiality and Vusi: Business & Life Lessons from a Black Dragon. The latter has been a best-seller the world over and has opened him up to platforms and opportunities that enable him to pass on his golden nuggets. One of the most repeated ideologies he holds is getting rid of the ‘small business’ mindset we seem to hold dear in Africa. Albeit the fact that beginnings might be small, the thinking and strategy for it cannot afford to be anything less than global. His challenge to entrepreneurs and specifically African ones is to have ideas that are beyond personal interests and current generations. They therefore must be willing to go beyond every excuse and obstacle, despite their validity, and thus conquer themselves. Then conquer the world!
Purity Buyanzi | puritybuyanzi@gmail.com
The writer is an aspiring Financial Analyst, passionate about leadership and mentorship
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The principle of weight gain is simple, Energy intake exceeds energy expenditure. Energy intake is measured by the amount one takes in food, whereas expenditure is determined by the amount the body utilizes and physical activity levels.
The majority of the Kenyan urban population is obese. Studies relate 60.3% of urban residents and about 19.5 % of rural to be obese. Overweight and obesity are a result of complex set of interactions among genetic, behavioral, and environmental factors. Hundreds and thousands of weight-loss strategies, diets, portions and devices being offered to the overweight public, prove ineffective. The percentage of individuals who lose weight and successfully maintain the loss is 1-3%.
Physical Activity, Dieting and Weight management: Some eating habits such as eating few meals at home, increased intake of high fats, skipping breakfast and snacking junk promote weight gain. Following a diet can help lose weight and maintain a healthy weight overtime. However, not all diets are equal, and many fad diets and extreme calorie restriction plans can have a negative impact on your health, and lead to more weight gain in the future. Making healthy food choices, like eating more fruits and vegetables, food portioning by adhering to serving sizes for meals and adding activity to your daily are behavior modifications that can help in weight control. Any diet plans should build on these habits, and it’s key to choose a lifelong plan.
One of the best predictors of comprehensive long-term weight reduction strategy is physical activity.How one develops and sustain an exercise program determine their weight management outcome. For any given individual, the intensity, duration, frequency and type of physical activity is determined by their health condition. Among other benefits, it ensures maintenance of lost weight, preserves the lean body mass, improves cardiovascular, respiratory and musculoskeletal fitness, and improves psychological profile and self-esteem.
People become or remain overweight as the result of modifiable habits. By changing those habits, weight can be lost and the loss can be maintained. Behavior change in weight control primarily focuses on increasing physical activity level and reducing caloric intake by altering eating habits. I encourage that anyone on weight loss management program to keep a food diary which records what and how much you have eaten, and a record of your daily physical activity. Self-monitoring is a sense of accountability and it’s associated with immediate reduction of food intake and consequent weight loss.
Argwings Chagwira Muliro | am.chagwira@gmail.com
The writer is a nutrition and wellness professional who is focused on conducting detailed nutrition consultations and creating personalized meal plans to meet the needs of his clients
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During the 8th state of the nation address H.E Uhuru Kenyatta presented his speech based on Economy, social structure, and democracy. President Kenyatta stated that amid Covid 19 pandemic there were interventions set in place to reinforce the resilience in the economy while cushioning millions of households against harsh effects. He further stated that economically Kenya had become 6th wealthiest nation in Africa in terms of GDP of 11 billion Kenya shillings.
The Kenyans GDP currently stands at Ksh 11 billion shillings up from 4.74 billion shillings. On the 2nd quarter this year the economy grew by 10.1 % being the highest growth in the history of our economy. ICT sector grew by 21.15%, transport sector grew by 16% and manufacturing grew by 9.6%.
However, the claim that Kenya is 6th is the wealthiest country in Africa is true, but the approach and framework could be wrong. Kenya is only the 6th wealthiest in terms of GDP (total production of all goods and services and not evenly distributed through the economy).
A more accurate figure of economic situation is GDP per Capita or nominal GDP, Kenya is one of the bottoms 20 in Africa with per capita GDP of US$ 2,000 compared of with Seychelles with $26,120 per capita GDP.
Another indicator that reflects the wealth of a country is Purchasing Power Parity which takes into account actual income plus inflation and the prices of local goods and services. The current Kenyans inflation rate is at 5.4%. In 2020 the Kenyans Purchasing Power Parity was 44lcu from 21.3lcu from 2001 which shows there is only 3.95% growth rate annually.
Other than Gov’t expenditure which has been growing in terms of pushing the GDP is the growth of elite economy like banking, Tourism and hospitality and cooperate services Agriculture productivity has been stagnant and deteriorating.
In simple terms the economic outlook is positive. The economy is projected to grow by 5.9% in 2022. The rebound assumes that economic recovery strategy is being successfully implemented and Kenya is capitalizing on external liquidity and benefitting from initiatives to meet its external financing needs. Inflation is expected to remain within CBK target range of 2.5% to 7.5%. Downside risks could emanate from delay in fully re opening of the economy, failure to secure financing to execute the budget and bad social conditions during 2022 elections.
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Have you ever been told “you look thin” or “you look fat?” how did you feel about it? What is a healthy weight and why is it important to maintain it?
What does a healthy weight mean?
Research has attempted to define healthy weight based of parameters that measure body fat composition. In this article, we will use two parameters: the Basal Metabolic index (BMI) and the Waist Circumference (WC).
BMI is determined by your weight and height. It doesn’t measure body fat but correlates with direct measures of body fat. A higher BMI tends to indicate higher body fat, and a lower BMI indicates lower body fat. BMI is calculated by taking your weight in (kgs) divided by height in M2 and interpreted based on standard values. BMI <18.5Kg/m2 indicates Underweight, 18.5- 24.9Kg/m2 is a healthy weight, 25- 29.9 Kg/m2 shows one is overweight and obesity correlates a BMI>30kg/m2.
BMI is however a screening method rather than a definitive measure of a person’s body fat. Moreover, it doesn’t work in isolation nor replace guidance from a medical professional. It gives a general idea of a person’s body fat, but it is not a diagnostic tool for disease risk. Being within a healthy weight range doesn’t necessarily mean that you’re healthy. Being underweight or overweight doesn’t necessarily mean that you’re unhealthy either.
Waist circumference (WC) screens for health risks associated with carrying excess body weight. Fat tends to settle around the waist rather than the hips. This indicates an elevated risk of developing heart disease and type 2 diabetes. The risk level increases for women with WC >35 inches, and for men with WC >40 inches.
Why it’s important to maintain a healthy weight.
It’s not safe to be underweight or overweight. Underweight is associated with mineral and vitamin deficiencies, immunodeficiency, vitamin D deficiency, osteoporosis, and anemia. On the flip side, being overweight or obese is linked to most lifestyle diseases such as sleep apnea, cardiovascular diseases, stroke, hypertension, type 2 diabetes, osteoarthritis, lower quality of life etcetera.
Many weight management experts have over the years focused on the outward goal of measurable weight gain or weight loss. Whereas this has been quite beneficial, research proves it unsustainable. Focusing on individual behavior change proves beneficial and sustainable, then just losing kilo over a period of months. Whatever size you are, you need to appreciate you can be healthy at that. You need to modify your health behavior(s) to achieve good metabolic fitness i.e., blood pressure control, increase physical activity levels and have a better psychological status in pursuit of maintaining weight.
Argwings Chagwira | am.chagwira@gmail.comThe writer is a food, nutrition and dietetics
expert. He provides professional guidance on
health and nutrition
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Foreign remittances to Africa have increased over the years as more Africans are absorbed into the world’s job markets. To illustrate this growth, more than $540bn crossed borders to low and middle-income countries in 2020, surpassing development aid and FDI. The amount remitted to Sub-Saharan Africa (SSA) was a paltry $42bn with $17.2bn remitted to Nigeria alone. These amounts have been resilient despite the pandemic that left many jobless in the host countries.
Also, worth noting from the world bank report were the remittance costs. Africa had the highest remittance costs with a $200 transfer costing about 8.21%. This is way above the world’s average of 4.9% recorded in Asia. Intra-continent transfers were also among the highest in the world. For instance, the cost of sending money from South Africa to Botswana, Zambia and Malawi stood at 19.6%, 17% and 16% respectively. Other expensive corridors included Kenya-Tanzania, Tanzania-Uganda, and Angola-Namibia. Bearing in mind that these remittances go directly into the pockets of family and relatives, their impact is huge as most of the money is used to finance education and other daily needs.
These remittances are poised to increase as more Africans are employed as expatriates. Another avenue that will significantly contribute to the remittances is the uptake of remote jobs. As such, nations should create a conducive environment that will lower these remittance costs. Some of the ways to lower these costs is through actualizing the African Continental Free Trade Area (AFCTA). This will see free movement of capital, labor and goods resulting in lower transaction costs.
Another initiative is leveraging Africa's FinTech prowess to facilitate global transfers. Africa has one of the most developed money transfer services such as M-Pesa. Through partnerships with international remittance services such as PayPal, Western Union and MoneyGram many obstacles shall be eliminated thus reducing the time and costs involved in transferring money globally.
The most innovative and upcoming solution is the adoption of cryptocurrency and blockchain. Since most of the population has access to a smartphone and internet, receiving money shouldn't be a challenge. This decentralized platform allows for speedy and low-cost peer-to-peer transfers thereby, providing the much-needed funds for development.
As global remittances increasingly contribute to the GDP of African countries, lowering these costs will increase funds available for spending thereby contributing significantly to improved wellbeing since the funds are less susceptible to misappropriation when compared to development aid.
Brian Shikuku| The writer is investment professional interested in financial markets, alternative investments and financial education. |bransikafrica@gmail.com
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There is a great need for funds now more than ever before, resources are shrinking while needs are growing by day. Unfortunately, international donors are now investing in their own economy in the bid to realize the SDGs rather than the developing world, especially as we approach 2030. This therefore calls for a paradigm shift from money to the targets. Is it possible to meet the target with the available resources without necessarily looking for money? Coalition building, networking and leveraging on other organization resources are therefore important alternative strategies to achieve organizational goals.
This webinar was more of a follow-up engagement following a similar forum that had been hosted back in June 2021. In that forum, an overview of how to raise funds and the lessons resource mobilization experts have learned over time were discussed. Some of the ideas were still emphasized in this recent webinar as discussed but greater chunk of time was spent to train on the different elements of proposal writing as this is the means to ensuring successful fundraising for NGOs.
In the continuous process of identifying and obtaining resources for any organization, it is important to consider the following: timing, skill acquisition such as proposal writing, innovation and creativity, having a variety of funding sources, appreciating the fact that the donor is always right and being up to date with current affairs. The organization seeking funds needs to promise performance and credibility to the donors by optimally utilizing and accounting for all the funds received. This helps to boost trust and maintain a trustworthy relationship. The element of community ownership is very important to some donor agencies- it is easier to receive organizational funding than it is to receive individual funds for personal business; the former promotes accountability and shared responsibility. When it is all said and done, follow up and gratitude goes a long way in cementing the relationship; thank the donors within 72 hours.
When it comes to the proposal writing, one needs to understand the different concepts used, the key proposal components in their logical sequence, a clear understanding of the environment and the steps in project planning and design.
Finally, the reason some projects never get funded is mainly because of ignorance. This may be due to insufficient donor knowledge, failing to introduce one’s organization before applying for funds or failing to follow the donor’s instructions and directions.
Esther W. Njaramba
The writer is a Counselling Psychology graduand from Kenyatta University who works with individuals and groups to see to it that they lead satisfying and happy lives.|njarambaesther3@gmail.com
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The National Health Insurance Fund (NHIF) is a scheme that was established under the NHIF Act of 1998 to provide health insurance to Kenyans. The eligibility criteria for enrolment are any ordinary citizen in Kenya who has attained the age of 18 and is either in active employment or self-employment. Members of Parliament passed the NHIF bill on September 29th, 2021, stating that every adult in Kenya over the age of 18 is required to purchase NHIF coverage. There is a provision for the informal household to sign up for the NHIF and pay 6,000 Kenyan shillings annually. It is helpful as it will help in achieving universal health coverage.
Recently, a proposal was brought up in parliament to review the monthly contributions that the members of NHIF pay every two years. This amendment bill has been set for debate this month. The choice is attributed to the increased cases of chronic illnesses in the country, which make the pool of funds gathered by NHIF unable to meet the health needs of all Kenyans. According to the statistics compiled by Ampath, in western Kenya alone, 60,000 people are living with diabetes. This does not include other citizens with chronic illnesses like hypertension and cancer that require regular medical attention.
For this case, it's a two-way situation because, on the side of NHIF, the disease burden is on the rise, and the only way to keep the services functional is to increase the financial flow to the pooled funds so that they can assist in achieving the sustainable development goal of health for all.
In 2015, the World Bank reported 36.1% of Kenyans were living below the poverty line, and to date, nothing has changed much. Recently, there has been a remarkable increase in the prices of basic commodities such as cooking oil and sugar. This has affected many Kenyans because of the little income they get per day. This situation has caused trouble among Kenyans because most of the citizens live from hand to mouth. With the rise in the economy, will Kenyans be able to pay for the doubled contribution of the NHIF? It's a good initiative on the part of NHIF, but there is more than meets the eye. Through research should be conducted prior to passing the bill so that local Kenyans are not inconvenienced and the NHIF's pool of funds is not taxed.
Prayer Major
A nursing student at Karatina University | wapukhamajor@gmail.com
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Digital lenders have been on the spot since their inception into the banking and finance industry due to indulgence in unscrupulous business practices. Some of the unfair trade practices the Digital lenders are accused of engaging in are predatory lending tactics, exorbitant interest rates, sharing and misuse of customer data in the name of ‘debt shaming’ among others. The above-mentioned misdeeds violate the constitutional rights of the consumers especially the rights under Article 46 on consumer protection and right to privacy under Article 31 of the Constitution of Kenya 2010. Digital lenders have also constantly violated the provisions of the Competition Act, Data Protection Act, and the Consumer protection Act hence a need to tame their practices and bring sanity into the digital lending space.
The Central Bank of Kenya (Amendment) Act of 2021 assented to on 7th December 2021 is a game changing legislation that will bring the digital lending space under the ambit of Central Bank of Kenya (CBK). Initially, the CBK was only licensing Banks through the Banking Act, Regulations and CBK prudential guidelines. The other Deposit taking financial institutions such as Microfinance Institutions are regulated by CBK through the Microfinance Act while Deposit taking Saccos are regulated by Sacco Societies Regulatory Authority (SASRA) through the Sacco Societies Act. Digital lenders are non-deposit taking financial institutions lending money to clients without taking deposits. Aside from their ugly side, they have the good side which is helping SMEs operate their businesses with easy through expedient and instant loans.
The operational freedom that Digital lenders have enjoyed previously is the cause of major concerns raised necessitating legislation of this new Act. Perhaps the CBK had granted them a test and learn period to wait for the loopholes to manifest themselves before sealing them immediately as they have done. The CBK Amendment Act provides a sound regulatory framework to digital credit providers. The Act gives the CBK powers to make regulations to operationalize the Act, issue licenses to digital lenders, supervise, suspend, and revoke licenses of digital credit providers who do not conform to the operational standards. Among the key operational standards that Act sets are registration requirements, management requirements, credit information sharing, and reporting requirements. With the above new changes, SMEs will operate better with more trust in the sector and protection of their rights hence boosting trade in the country due to increased financial inclusion
Onyango Bwire Boaz, | LLB, KSL Dip. Constitutional, Family, Conveyancing, Commercial and Corporate law practitioner at, Oundo Muriuki & Company Advocates, Krishna Center, 4th Floor, Suite F15, Woodvale Grove, Westlands, P.O Box 13693-00800 Nairobi, Kenya Email: bwireboaz@gmail.comTel: 0707514195
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Security is one of the most critical components of our socio-political and economic environments. Security is however not a product, but a process of continued reduction of the likelihood to lose your valuable items. While social and business goals maybe distinct in many respects, safety and security remains a common concern to both an estate owner and a commercial institution such as a construction site, school, hospital and administrative office of an organization. While at home, try simple measures to enhance your security such as getting a security system, posting security signs, and lighting up your home exterior, testing your windows and installing security cameras.
At times you may have limited knowledge about the right security measures that you should take. This is common in the initial stages of identifying safety and security risks. Anytime you are in such a situation, it is advisable that you seek advice from a credible consultant on security issues and develop a plan to implement mitigation strategies. Idar Group Security Services is one such partner that is fully capable take care of your safety and security needs. The firm has a wide range of services that include car tracking and private investigations, perimeter and intrusions detention, electric fencing, security lighting, alarms and CCTV installation, security installation, security gates and signage, entry and exit security logbooks and a 24-hour operations center. Other services offered by Idar Group Security Services are mobile patrols inside and outside of your premises and transit security when you are shipping personal items.
When finding a firm to provide you with security guard services, you need to be particular about the training of those guards and their professional conduct. Go for a firm that meets international standards of security service delivery to take care of your life, community, and business. The right service provider in security terms will also build a relationship with you.They will value your safety and take the job of securing you with the seriousness that is required. To get in touch with Idar Group Security Services, visit the firm’s website, idargroupsecurity.co.ke or search them on Facebook. For more queries about security and safety, talk to these experts directly via +254 721 630 462. You have enough reasons to make security a part of your everyday lifestyle with Idar Group Security Services Limited.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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Jeremy outlines nuggets in his book meant to help managers take their businesses forward by helping them learn strategies for effective decision making. The book is divided into two parts with the first addressing the forces at work and the other expounding on the concepts and tools for strategic decision making.
The forces any business faces are likely to fall under the social, cultural or commercial category. Knowledge (intellectual capital which includes experience and expertise) and leadership matter a great deal in trying to address these forces. It is important that an organization’s knowledge remains as unique as possible as this provides profitability because of scarcity. Value innovation, globalization and management of informationare key strategies to ensure uniqueness.
Among the very many ideas one may have for their business, they need to remember three things Jeremy outlines: to employ effective strategic leadership and decision making at every level of the organization; to forecast and manage uncertainty; and to manage adversity. There are three principal financial issues that influence strategic decisions: cash management, risk management and budgeting. The most powerful and natural of forces shaping strategic thinking is the human mind; as a result, there are three types of failure any organization leader needs to watch out against: thinking flaws, leading flaws, and cultural flaws. It is said that “bad decisions can often be traced back to the way they were made” adaptive organizational learning and scenario thinking are mechanisms Jeremy outlines that can help any business avoid some common pitfalls and traps.
For the realization of growth in any business, five strategies need to be highly considered: organic growth, mergers and acquisitions, integration/partnership, diversification, and specialization. In addition to that any team needs to employ competitive strategies that encourage competitiveness with the customer being the focus.
As the book ends, Jeremy mentions the need to manage finance and also manage risk. The latter can be made possible by creating a positive climate for controlling risk depending on its potential impact and the need to overcome the fear of risk. He also points out the importance of brand management; deciding the brand's purpose, emphasizing the brand's values, deciding where to position a product and how to build customer loyalty. This is a book to grab for any individual or organization that desires growth and progress either in business or any other sphere of life.
Esther W. Njaramba
The writer is a Counselling Psychology graduand from Kenyatta University who works with individuals and groups to see to it that they lead satisfying and happy lives.|njarambaesther3@gmail.com
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A frustrated artist and a haunted entrepreneur find themselves at a motivational talk by The Spellbinder that leaves them alive and hungering for more. Each finds hope when he says that the place of one’s greatest discomfort is also where one’s largest opportunity lives. When a seemingly homeless yet vibrant and knowledgeable man invites them for a get-away to re-discover themselves, they hesitate only for a minute. Armed with the curiosity and willingness to join the 5 AM Club as he called it, the journey to Mauritius where their previously ‘homeless’ billionaire mentor awaited.
Every 5 AM for the next few days they would learn the kind of mindset and lifestyle that makes the top 5%. One of them is The Four Focuses of History-Makers: Capitalization IQ. Be committed to improving the talents that you have, freedom from Distractions. Prioritize your life and thin out the areas that are less important. A few successes are better than many mediocre achievements. personal Mastery Practice. Create a positive, creative and healthy mindset, heart set, health set, and soul set, day Stacking. Having the bigger picture in mind, focus on having a day oriented towards it and making progress every day.
An important protocol that the billionaire shares with our explorers is The Habit Installation Protocol. This is the process it takes for one to incorporate a new habit into their normal routine. The first 22 days are termed as the destruction phase, obviously so, since old habits are being destroyed. The second 22 are the installation stage, the hardest stage, often characterized by frustration. The last 22 days are the integration phase, where the habit becomes automatic. In summary, every change is hard at the beginning, messy in the middle and glorious at the end.
Just in case you are wondering what you actually do at 5 AM, fear not, that is not left out. It would be quite a shame for you to be convinced to wake up so early and waste the entire time! The idea brought forth here is defined as The 20/20/20 Formula. Each 20 minutes is used on Exercise, Meditation, and Learning respectively. After this, the next 90 minutes are advisably used on the most important activity of the day.
Rest, determination and many more aspects are tackled in this world-class book that I believe can catapult anyone from ordinary to extraordinary. Remember, Triumph Loves the Relentless!
Purity Buyanzi | The writer is an aspiring Financial Analyst, passionate about leadership and mentorship | puritybuyanzi@gmail.com
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A worldwide household name, Wilmot Reed Hastings Jr. was born in Massachusetts in 1960. He graduated from college in 1983 with a BA in Mathematics, after which he joined the Marine Corps. He however did not finish his training and instead joined the Peace Corps. Drawn by the thrill and adventure, he spent two years in Swaziland, teaching Mathematics. He then proceeded to earn a Master’s Degree in Computer Science from Stanford University in 1988.
Hastings worked at Adaptive Technology up-to 1991, when he founded his first company, Pure Software. Up to this point, Hastings had been involved in product development and its technicalities and had no idea how to maneuver through the intricacies of management. For this reason, his company started failing and he asked to be replaced as CEO. The board refused. Pure Software then merged with Atria Software to form Pure Atria, which was sold to Rational Software in 1997.
Following his experience with Pure Software, Hastings took a two-year break to strategize on the way forward. In 1997, he at one time was late in returning a movie cassette and was fined highly. And thus his next venture was birthed. Together with a former employee of his, he founded Netflix, which was then a movie-rental service. People would order their movies on a website and the DVDs would be delivered by mail. A subscription service was later launched, where customers would pay a specific fee for access to an unlimited number of DVDs. This idea was carried on when internet streaming services were launched in 2007. Today Netflix is also involved in content production and its subscriptions are at over 200 million households.
Based on Netflix’s culture, Hastings co-authored a book: No Rules Rules: Netflix and the Culture of Reinvention. In an interview on the same he explains why he thinks the best CEO is the not-busy one. “You want to be able to know what’s going on in all kinds of places, but not making decisions,” he goes on. For a CEO, it means having the bigger picture in mind and planning long-term. For an employee, it means taking everything into consideration in decision making, knowing full well that the buck stops at you.
One of the many things Hastings has learned over the years is portrayed quite loudly, especially through Netflix: It is better to do one product well than two products in a mediocre way.
Purity Buyanzi | The writer is an aspiring Financial Analyst, passionate about leadership and mentorship | puritybuyanzi@gmail.com
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Climate change poses an existential threat to mankind with developing countries set to face the toughest impacts that comes with it. To put this into perspective, in the current year, the prolonged drought situation in Kenya has predisposed close to 2.1 million people (from the ASAL regions) to food insecurity. Other than prolonged droughts, the rainfall patterns have also changed resulting to low rains in the food producing counties. Also, torrential rainfalls and floods experienced across East Africa in 2019 and 2020 could be attributed to climate change. The threat to our people’s livelihoods is real despite Africa having contributed only 3% of historical carbon dioxide emissions. This calls for urgent solutions which can finance can provide since all interventions call for funding.
The role of finance in averting the impending climate catastrophe has been discussed by many scholars in different forums. In 2020, President Kenyatta presided over the cross-listing of Kenya’s first green bond at the London Stock Exchange with Acorn realizing an 85% uptake. Issuing instruments linked to sustainable investments will play a key role in mitigating climate change. Therefore, Kenya’s capital market has provided a framework for green finance.
As an incentive, the capital market, in partnership with the government have exempted these green finance instruments from tax thus attracting both local and international investors. With the cross-listing option, Kenyan companies are set to access adequate funding from developed markets given the premium ratings these instruments have received in the past.
The capital market has also offers guidelines in sustainable reporting by listed firms. This has seen more and more firms report their ESG (ENVIRONMENT, SOCIAL, AND GOVERNANCE) as part of their annual reports providing both qualitative and quantitative measures with regards to their climate change mitigation initiatives. To this end, most listed firms are incorporating their sustainability efforts. Therefore, the markets ought to offer guidance in ESG reporting and even make it compulsory for new listings to promote the net-zero goal as enshrined in the Paris agreement.
The effects of climate change are massive and a lot has to be done to avert the worst outcome. As players in the world order, African exchanges and capital markets have to play their roles as investment gateways even as governments seek for more funding in international forums. With collaborative efforts, climate change provides new and innovative investment avenues that are not only profitable but also sustainable.
Brian Shikuku| The writer is investment professional interested in financial markets, alternative investments and financial education. |bransikafrica@gmail.com
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There has been a remarkable increase in the number of Kenyans utilizing the Safaricom overdraft facility service of fuliza. It was introduced in the year 2019 to aid the customers who required urgent cash that is below 2000 and it has gained popularity among the Kenyans as they can complete their transaction and buy what they need as much as they may be having less cash in their account.
The rate of borrowing from this facility has increased greatly by 1.34 billion daily in the last six months. The number of Kenyans signing up daily for fuliza is 700,000 making the total number of active fuliza users be 1.7million. Fuliza has brought stiff competition to other mobile loan lending facilities such as the KCB M-PESA of the Kenya Commercial Bank and M Shwari of the NCBA bank. They have had a decline in the number of customers utilizing their loan facilities as opposed to when fuliza had not been introduced yet. I think it is a win-win situation for them as these two loan lending facilities have a share in the Safaricom fuliza overdraft service. It is also an advantage to them as fulizaalways has a 99% rate of repayment because immediately the debtor receives cash in their mpesa account the loan they had of fuliza is immediately repaid.
Is this Fuliza helping us? I think that it is only providing short-term aid to us but in the long run, we are training ourselves to be a country and citizens that live in debt. Fulizaloan is very addictive. We have been carried away by this easy way of acquiring cash such that some people have gone to the extent of getting several sim cards which are signed up for fuliza and are actively using the services in all these sim cards, at the end, when they work and get paid, all the money goes back to the credit lending facility.
The culture of saving and investing is slowly being chocked by fuliza. A high number of Fulizausers are Kenyans who live below the poverty line. He who feeds you controls you and no doubt Kenyans are being controlled by fuliza. It’s a wake-up call to Kenyans that we need to find something extra to do so that our cash flow may be increased if we keep on borrowing in this overdraft facility we are getting ourselves into a rat race that we may never be able to exit.
Prayer Major
A nursing student at Karatina University | wapukhamajor@gmail.com
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Government set to initiate reforms in labour laws and policies to protect migrant workers
Saudi Arabia, United Arab Emirates, and Qatar are among the largest importers of labour globally. A thousand migrant workers leave the country annually to seek opportunities as domestic service workers in Saudi Arabia due to the Kafala system which makes the process affordable. The female migrant workers do not incur migration costs since they migrate on a sponsored visa and air ticket funded by the employer. The kafala system is however disadvantageous on the employees since upon arrival they are held in slavery-like conditions.
In 2020, the diaspora remittances surpassed the income obtained from the traditional sources such export of agricultural products. Therefore the government saw the opportunity in exporting labour to the gulf countries and more so Saudi Arabia which has bilateral agreement with Kenya on labour matters. The government through the ministry of labour has introduced several reforms through policy frameworks while other reforms are underway in bills of parliament and draft policies that are yet to be concluded. Among the key reforms introduced to reduce distress from ladies traveling to Saudi Arabia, is compulsory pre-departure training conducted by licensed home care training institutions in Conjunction with National Industrial Training Institute (NITA). The changes were introduced amid the increased mistreatment and death rate of domestic service workers.
To ensure that ladies can always be saved from distressed conditions and be airlifted back to the country through the assistance of the embassy, the Ministry of labour through the National Employment Authority (NEA) requires all migrant workers going to Saudi Arabia and other GCC member states to pass through registered and licensed Employment Agencies which are listed on NEA website. The CS for labour, Simon Chelugui has asserted that migrant workers stuck in Saudi Arabia and other Gulf Countries were sneaked out of the country by unscrupulous employment agents. Among the key reforms to come in the future is the establishment of a safe house for distressed migrant workers, provision of social welfare packages such as medical cover, overtime pay and leave days for the migrant workers. Philippines is the largest exporter of Domestic service labour in the Middle East due to its improved labour laws and policies that protect its migrant workers. Kenya is reviewing its labour laws and policies progressively towards achieve such as status.
Onyango Bwire Boaz, | LLB, KSL Dip. Constitutional, Family, Conveyancing, Commercial and Corporate law practitioner at, Oundo Muriuki & Company Advocates, Krishna Center, 4th Floor, Suite F15, Woodvale Grove, Westlands, P.O Box 13693-00800 Nairobi, Kenya Email: bwireboaz@gmail.com Tel: 0707514195
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“If everyone, including political leaders, is given the opportunity to learn the essential principles to smart money management, it will enable them to better plan ahead and keep their financial house in order and help others to do the same” Michael Ochieng Nyawino (2019). What the Executive Director at Christian Community Healthcare Foundation says was the heart of the webinar that was presented by Industrial Bank in collaboration with EVERFI.
According to the Global index report; women in the developing nations, such as Kenya, have a 20% less likelihood of owning a bank account in a formal financial institution and 17% less likely to formally borrow money; deficiency in their financial literacy is one of the causes. Financial literacy is basically an individual’s comprehension of concepts such as debt, investing and saving which then contributes to their general definition of financial well-being; it begins with the awareness of matters concerning money.
For Industrial Bank, the aim is always to make a difference in the lives of their customers and employees even as they impact economic development in communities. Over time, they have achieved this by creating unique products and services that meet customers where they are and also supplementing the teachings of financial empowerment while still making money for the bank and mitigating risks. This is worth emulating in attempting to transform communities.
Information and a person’s ability to make sound decisions go hand in hand. Any business owner should therefore ensure that their customers can visualize and understand the elements of financial literacy. The simplest form of education to offer is how customers can save, invest and/or spend their income by clearly distinguishing their needs from wants. It is important to note that financial education should not be limited to schools and churches but other uncommon avenues such as jails and shelters. This is because financial literacy crosses all spectrumsof age, sex, income, social status among others. Above all, in this COVID-19 era, the most can be attained by adopting digital approaches to financial education.
Finally, there is a very strong association between financial literacy and social issues. It is said that financial literacy is a great equalizer in the battle against social justice. It contributes to the general decrease of stress levels in individuals and reduces chances of family discord. There is therefore an increased urgent demand for financial literacy in communities.
Esther W. Njaramba
The writer is a Counselling Psychology graduand from Kenyatta University who works with individuals and groups to see to it that they lead satisfying and happy lives.|njarambaesther3@gmail.com
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The MADE IN KENYA narrative that aims at producing goods locally is not possible without building industries to process and manufacture what we consume. This year in the devolution conference 2021, various counties had exhibition booths where they showcased produce from local industries with the aim of mobilizing support from partners and expanding markets for their locally made goods. For counties with something to showcase, the conference is a huge platform to let their local industries known. Kitui County is one of the counties that has a variety of locally made goods gaining market acceptance thanks to the devolution conference.
Kitui County through partnerships with private investors and other government agencies is shaping up to be Kenya’s next industrial hub outside of Nairobi metropolitan area and traditional white highland regions as mapped by the British colonial government. Two of the most prominent companies in the Kitui’s industrialization story are Kitui County Textile Centre (Kicotec) and the Kitui Pharma Industry. Musyi Development and Tecnofin Limited have also formed a joint venture to construct 2,000 housing units in Kitui County. There are other investors who are developing interest in Kitui County thanks to a demonstrated commitment by the county’s leadership to promote industrialization in its rural and urban centers.
Industrialization in Kitui county cuts across from food and leather processing to construction and tourism. The county government is building a 30.9-acre Kalundu Eco Park in Kitui whose amenities will include a dry-land beach, a floating restaurant, kayaking and jet skiing. Some of the produce of Kitui County include locally brewed wines, honey, yogurt, fumigants, hand sanitizers, hand wash, methylated spirits, sporting balls and livestock products.
The making of an industrial hub requires huge investment into energy supply, capital goods such as machinery for processing raw materials, moving equipment such as trucks and conveyer belts, mobilization of skilled labour, availing raw materials for processing into consumable goods, infrastructural investment in factory buildings, internet and roads, a vibrant service sector to help in branding, banking and research and a sound policy environment to regulate production of goods. In devolving industrialization to counties, there is need for county governments to create enabling environments for factories to be set up through various policy, infrastructural and leadership interventions. Kitui County seems to have gotten this right but there is a huge room for improvement.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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As a little boy growing up, I remember looking forward to holidays away from school. There was so much to be eager about when the festive season of Christmas began. I knew it was the time to meet my cousins on safaris that had been planned for a long time. Other days my grandfather would slaughter one of his turkeys and invite his large family to feast. We also recited Christmas carols and made presentations in church during a Sunday school service. Such are the memories of December holidays from my days in primary school. It’s a time for refreshment to both young and old. Savings of the year would be spent by adding new pieces of clothe to the wardrobe and attending events of the season. In one of my favorite travel destinations, Turkana County, Tubong’ulore cultural celebrations are opening the chapter of a December holiday in North Western Kenya. A lot more will be happening and each of these celebrations call for different tastes of fashion.
In Lodwar town, one of the best boutiques I have ever visited is run by an entrepreneur who stands out through her ability to bring to the market products that are current and relevant to buyers. Jemmy has been in the fashion industry for more than a decade and her Lodwar shop is well stocked with pieces of clothes for all age groups. Her shop, Jemmy’s and Young Selection, is a gallery of everything fashionable. She also sells cosmetics, bags and shoes. Her customers get an opportunity to walk through aisles in her shop choosing for themselves from a variety of products that are on display.
Decency and dignity can be earned from how we groom. This is why you need to always dress for your next occasion. If you are going to work, dress for the job. When your children are reporting to school ensure they have school shoes that befit them. At Jemmy’s and Young Selection you have an opportunity to do your window shopping before making your purchase. Visit Jemmy’s shop along KCB road from Lodwar prisons roundabout in Lodwar town for endless varieties of elegant fashions. Jemmy’s and Young Selection is also on Facebook, Twitter, and Instagram and on WhatsApp via 0727309111.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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We are living at a time when speed matters a lot in our daily business activities. When it comes to the internet, they say slow WIFI is worse than no WIFI. COVID has taught us that companies can still work remotely and deliver 100% service to their clients. This is only possible with good connectivity of the internet. The 5G future is here. Years in the making, the long-buzzed-about fifth generation of wireless connectivity has become a reality, ushering in an era of radical new possibilities in many industries.
Innovative use cases such as autonomous drones and smart city ecosystems promise increased efficiency and productivity for governments and businesses in a post-pandemic world, and pervasive benefits across the globe. Faster internet also opens up fresh opportunities for businesses by enabling them to leverage online marketplaces and tap into new customers and operating morals to grow their revenues.
Why 5G? The promise of 5G has been echoed throughout the business world for years.5G’s faster speed, lower latency, and ability to connect vastly higher numbers of devices than previous generations of mobile technology offered executives a glimpse of a more efficient and productive future. By providing the basis for ubiquitous ultra-fast broadband, 5G opens up possibilities far beyond the reach of 4G or Wi-Fi 6. This promise has only grown more critical today, as managers consider how best to repair, rethink and reconfigure their business for the post–COVID-19 world.
Kenya’s leading mobile network provider Safaricom in March 2021 launched 5G network powered partly by Huawei, a move seen as a show of confidence in the Chinese multinational technology company. With the launch, Safaricom became the first in Kenya and East Africa to offer the new service. It also makes Kenya just the second country in Sub-Saharan Africa to roll out 5G after South Africa. 5G will also enable the deployment of advanced digital technologies such as virtual reality, crowd gaming, autonomous drones, industrial automation, and a wide range of IoT devices. 5G technology will usher increased internet speeds and capabilities for millions across the country, laying a strong foundation for a new generation of innovators and entrepreneurs.
As leaders contemplate the decade ahead, 5G demands strategic attention—both to where and how it can create competitive advantages and to the implementation and integration imperatives that must be met for it to generate value.
Simiyu Nalianya | The writer is a Creative Designer with a primary Degree in Food Science and Nutrition | evansimiyu13@gmail.com
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Health seeking behaviour (HSB) is a sequence of remedial actions that individuals undertake to
rectify perceived ill-health. It refers to action(s) by individuals who perceive themselves to have a
health problem or to be ill for finding an appropriate remedy. Health behaviours (HBs) are direct
factors helpful in maintaining a healthy lifestyle and do not occur in isolation. Social, cultural, and
economic factors influence them. Individual
choices and/or external constraints shape
HBs in most cases.Positive HSB promotes health, prevent
diseases, and ensures good health outcome
while the opposite increases, morbidity,
and mortality.
An individual does not have to be ill, to seek
healthcare. Everyone is at risk of contracting
a disease condition. Take for example the
case of COVID 19. The entire population has
an exposure, in many ways, to this disease
acquisition. However, the bigger population
(including those who have experienced
symptoms), may not have taken the initiative
to be tested. Medical Check-ups and preventive care are
essential. Over the years, there has been
an exponential rise in the number of noncommunicable
diseases (NCD’s) such as
Cancers, diabetes, hypertension, obesity
etcetera. Such require early screening to
arrive at an early diagnosis, which helps
to prevent life-threatening ailments. Some
of the NCD’s such as hypertension have a
genetic inclination and addressing preventive
measures early enough is immensely
important. Hypertension attributes to about
7% of deaths globally. By 2025, the number of
adults with hypertension is likely to increase
by about 60% to 1.56 billion worldwide
and most of the cases will occur in low
and middle-income countries (LMIC).
Unfortunately, most cases of hypertension
are asymptomatic. As a result, hypertensive
patients often seek healthcare late orwhen they have complicated Strokes, heart
attacks, heart failure, and kidney failure. WHO
projects that, over the next ten years, Africa will
experience the largest increase in death rates
from CVDs like hypertension. Consequently, the
negative economic impact of CVDs will be more
on the African continent, and the cost of handling
chronic illness will render many household’s poor.
Early Nutrition and medical screening have been
shown to help in the early detection of various
deficiencies and physiological changes that would
prompt a life-threatening illness. If we perceive
that we are susceptible to acquiring a disease,
then we would invest our time and resources in
preventive healthcare-seeking behaviour like
frequent medical Screening, whether or not we
are unwell. It is paramount to invest in health
insurance covers, take our healthy babies to wellbaby
clinics, attend regular medical checks, and
ensure we get our shots on time.
Argwings Chagwira | am.chagwira@gmail.com
The writer is a food, nutrition and dietetics
expert. He provides professional guidance on
health and nutrition
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Media has traditionally been a communication
platform in diverse dimensions including
advocacy, news sharing, entertainment,
education, and awareness creation. Media
Coverage in Kenya has grown with the
increase in vernacular radio stations and
the rise of social media since 2009. Today,
social media has replaced radio as the first
channel of information sharing and as the
most widely used platform thanks to a mobile
phone penetration rate of more than 70% and
a high broadband subscription. Television
broadcasting was hit by the digital migration
of 2014 where content producers were allowed
the latitude to air their production without
necessarily owning a television station
provided an agreement is reached between
producers and broadcasters. A decrease in the
circulation of newspapers since 2013 is also a
trend that threatens print media despite being
a stable revenue earner from the advertising
business. While social media uptake continues to spike
in a country where the population mean
is 20 years, the topography is not without
obstacles. Among the obstacles that need to
be addressed in social media are skills gaps
among content producers, resource shortage
in acquiring the right infrastructure and
a policy gap to regulate the social media
space which is highly infested by fake
news, plagiarism, and incompetence.
Other obstacles are little or no evidencebased
research, forensic analysis, data-driven
journalism, and excess attention on politics
at the expense of other subjects like health,
economy, culture and the environment.
Ownership of media in Kenya has
continuously grown especially in seeing over
17,000 bloggers rise with prominent sites. Among these bloggers, at least a third of them
are dependent on the enterprise for a living.
Mainstream media ownership however is
in the hands of few where HH Prince Karim
Agha Khan, Moi’s family, S.K Macharia,
Kenyatta’s family, Patrick Quarcoo, Late Chris
Kirubi’s family, Raila Odinga and Dr. William
Ruto are some of the leading shareholders in
Kenya’s most prominent media houses. Kenya
also hosts international media entities and is
a regional bureau of top international news
organizations.
The big media houses are employing adaptive
mechanisms to industry changes by integrating
hybrid content production models for
online audience advertisers. Media houses
are pursuing newsroom convergence where
journalists are required to be multi-skilled with
thorough research competencies that meet
multimedia needs. Technology is on constant
upgrade across the media industry in Kenya as
it is the greatest force shaping media execution
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Kenya’s corporate scene was transformed significantly in 2015 following the amendment of the company’s act. This saw many listed public companies change their names with most now ending with the term ‘Plc’. Another newly introduced amendment, the first in East Africa was share buybacks. This clause gave leeway for companies to buy their shares in the open market. What followed was several companies amending their articles allowing them to buy their shares as early as 2017.
In the recent past, two closely related entities announced their intentions of buying up to 10% of their issued shares in the next 18 months. This brings us to the question, are Kenyan companies ready for stock buybacks? In my opinion, NO! Kindly follow my way of thinking to fully understand the basis of my assertion.
Firstly, we are a developing economy which means that the government and companies are competing for funds in the capital market. This provides the necessary funds for investment in infrastructure and growth. As such funds are hard to come by for some firms forcing them to rely heavily on retained earnings. Should a firm dig into its retained earnings to buy out its shareholders, they expose themselves to liquidity risk in an environment where the cost of borrowing is high. Therefore, stock buybacks are not ideal.
Another reason is that investors like gees that lay golden eggs. They will therefore invest in stocks of innovative firms that plough back some of their profits into research and development, guaranteeing future income in form of dividends and capital gains. Buying out your shareholders simply means that you are not innovative enough to leverage future opportunities that come with technology. Of the two firms buying its stocks, one has for long relied on an old business model. This has seen its revenues and profits decline in recent years as social media went for their primary source of revenue.
Since stock buybacks are a form of financial engineering, a firm’s investment ratios significantly increase after exercising this operation. As such, holdings of remaining shareholders increase as well. The earnings may remain flat, while their price multiples increase with little or no value-added in the form of advanced technology, increased market share, better earnings, and new investments.
Also, share buybacks will at one point give rise to agency problems. Since most managers’ performance is pegged on aspects such as the stock price, most will implement buybacks to access their bonuses. They may also use leverage to finance these buybacks thus exposing investors to financial risks.
To sum up my opinion, our operating environment is very fragile and any major shocks expose most firms to uncertainties that may cause liquidity challenges. Share buybacks are therefore not sustainable for most of our listed firms. A Story is told of the US aviation industry. As everyone knows, airlines are susceptible to liquidity challenges and lower profit margins. On the contrary, these major airlines have spent their free cash flows, (to a tune of $45bn) on stock buybacks since 2014. When the coronavirus pandemic hit, they sought bailouts to the tune of $50bn in taxpayers’ money. They got away with it. Is our government ready to bailout such firms should things go south because of using their cash to buy out their investors? Your guess is as good as mine.
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Savings and Credit Cooperative Organizations (SACCOs) are arguably the oldest form of banking in Kenya. Most of these organizations began as traditional table-banking groups with little or no formal organization but with structures of leadership, unwritten policies and a circuit of meetings in which deposits were received from members. Today, many such groups have formalized and are registered with Sacco Societies Regulatory Authority (SASRA). This development in the financial service sector has transformed Kenya’s economy through the convenience of savings and access to credit that is in SACCOs. In rural areas where agriculture creates the most number of jobs, the cooperative movement has been recognized by the government as a vital institution for mobilization of material resources for development. At a minimum, SACCOs offer savings accounts and loans. Deposit-based loans are usually sized at three to four times the amount of the member’s savings held at the SACCO. What makes the model unique is that loans are secured by the members’ deposits, and oftentimes by guarantees who also have deposits in the SACCO. The loans are fairer in their pricing and easier to access when compared to bank loans. Moreover, SACCOs pay higher interests on deposits than Banks, and members with SACCO shareholding enjoy guaranteed dividend payment annually. SASRA’s 2019 report highlighted resilience in SACCOs despite COVID-19 related constraints in the economy. For instance, total deposits held by Deposit Taking (DT) SACCOs stood at Kes.545 billion in 2020, a 13.4 % improvement on Kes.380 billion recorded in 2019. The growth reflects resilience in Saccos despite a difficult year that saw economic activates crippled by the global pandemic. Gross loans stood at Kes. 474.8 billion in 2020 from Kes.429.6 billion in 2019 being a record growth of 13.2%. The government of Kenya has been driving reforms to enhance governance, financial soundness, and sustainability of SACCOs consistent with policy developments articulated in cooperatives development policies (CDP) of 2019. Some of policy reforms that were initiated include: creation of a central liquidity facility and a shared technology platform, operationalization of deposit guarantee fund for SACCOs, establishment of SACCO Fraud Investigation Unit, and prudential supervision of non-deposit taking SACCO commodity referred to as Back Office Services Activities (BOSA SACCOs). These legal amendments have been drafted and submitted to National Treasury which has been included in Financial Bill for 2021. This is a milestone in ensuring that the capital investment in Saccos is protected.
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The webinar focused on addressing the place of effective business leadership, it aimed at equipping entrepreneurs with essential leadership skills necessary for any successful Micro, Small and Medium Enterprises (MSMEs). Statistics as of July 2021 show that there are 7.41 million MSMEs that have employed 14 million workers in Kenya. This means that 80% of businesses in Kenya are MSMEs granting the need for essential leadership skills for business.
According to Max De Pree, a leader’s first responsibility is to define reality and their last is to say thank you; in between the leader is a servant. This, therefore, means that leadership is a proactive journey that requires action which involves directing workers with the strategy that meet the business needs. Proper leadership provides room for uniqueness since every individual is varied in how they see opportunities and gaps in the market. This calls for a business leader to be first self-aware since how they show up determines their influence. Leadership is therefore very key as it is the major factor that makes everything work together seamlessly.
The presenter shared 5 levels of leadership according to John Maxwell. The levels have to do with position, permission, production, people development and the pinnacle of respect. Any business begins with a rightful vision bearer/leader (position) who then proceeds to create relationships with appropriate people (permission) to share the vision and values they have for the business with them. Once the vision is understood, the people can follow the leader to begin working based on what they see the leader do (production) to produce the leader’s desired results. From there, the leader can now train (people development) for reproduction to delegate and be able to concentrate on other things. Finally, the vision bearer leaves behind a legacy (the pinnacle of respect) because of their achievement.
Finally, the presenter shared 9 key traits of an effective business leader: Effective business leaders plan, Ability to steer the team towards the Vision, Effective Communication skills necessary for articulating ideas and goals, Ability to offer support to employees by getting involved in their lives through interacting with them, Decisiveness, Ability to delegate roles since employees have seen and learned how to carry the vision, Adaptability and learning agility, Ability to build a support network of advisors/ mentors and Self-care to promote healthy wellbeing.
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In a Constitutional Petition filed early this year, The High Court in Machakos declared section 12D of the Income Tax Act unconstitutional and hence null and void. Section 12D had introduced Minimum Tax as a blanket target on all taxpaying business entities at a rate of 1% on net sales regardless of whether they made losses or profits. Justice George V. Odunga while delivering the judgement on 20th September 2021 noted that the Minimum tax provision was in contravention of Article 201 (b) (i) of the Constitution of Kenya 2010 for subjecting taxpayers to double taxation hence punitive in nature. The Kenya Revenue Authority (KRA) had banked on the introduced new tax to widen its tax base. The court however noted that when the tax collector chose to widen its net for a bigger catch did not care about the effect its decision will have on Small Scale Businesses which are currently in perennial losses due to the abysmal economy caused by the covid-19 pandemic. Justice Odunga stated that;
“The minimum tax has the potential of not only subjecting the people to double taxation but also unfairly targeting people whose businesses for whatever reason are in a loss-making position to pay taxes from their capital rather than profits.”
The KRA wanted to utilize the Minimum tax to capture treacherous business entities that were avoiding taxes through the declaration of constant losses. The above tax system is however discriminatory especially on entities making losses since they will have to tax their capital as opposed to profits. The court further noted that a tax system that reduces the capital base falls short of the values of an optimal tax system.
Economists, financial experts and associations such as Retail Trade Association of Kenya (RETRAK), Kenya Association of Manufacturers (KAM), Kenya Private Sector Alliance (KEPSA), Deloitte, Price Waterhouse Coopers (PWC) and Kenya Bankers Association (KBA) had earlier on opposed the 2020 amendments to the Income Tax Act introducing Minimum tax due to its punitive nature on businesses with low-profit margins and high capital turnover. Firms in the category of fast-moving consumer goods (FMCG) have a reason to smile since they were the worst hit businesses by the new changes in the Income Tax regime due to their low-profit margins and high capital. Business entities can now operate without fear of reducing their capital to pay tax.
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From being awarded Nigeria’s second-highest honour to being the richest man in Africa 10 years standing, Aliko Dangote seems to be an ever-expanding brand; an empire all by himself. Industrious (quite literally), innovative and entrepreneurial are a few words to describe him, especially since we keep discovering greater depths to his abilities and vision.
Born in 1957 in Nigeria, Dangote rose from a wealthy Muslim family. His father passed when he was 8 years old, after which he was raised by his maternal grandfather, the son of West Africa’s richest man then. Despite his wealthy background, what Dangote reaped most from his upbringing was a wealthy man’s mindset, as opposed to his money. As a primary school child, he would buy and sell sweets to other children just to make money. Driven by this passion, he went on to pursue a degree in business studies and administration from Al-Azhar University in Egypt.
At 21 years old he went back to Lagos, Nigeria, and was able to convince his uncle to loan him capital that he used to start a trading business. And thus began the Dangote empire. Over the years, he would import in wholesale and sell a variety of products, including cement, sugar, rice, flour and iron. He then studied manufacturing in 1996 and towards the beginning of a century started putting together his manufacturing plants. He bought a government cement factory that he has established to become Sub-Saharan Africa’s largest of its kind, now part of Dangote Cement. His other businesses include Dangote Sugar and Nascon Allied Industries, all a part of the Dangote Group, the largest conglomerate in West Africa.
Unlike many businessmen, Dangote has made it his purpose to invest, re-invest and build in Africa. His businesses are the number one single source of employment in Nigeria and this will be the case as he expands through the Sub-Saharan territory. He has also stood out as a philanthropist, partnering with the Bill and Melinda Gates Foundation to eradicate polio in Africa. An interesting fact to also note is the kind of diversification he is willing to undertake to facilitate growth. Armed with the skill and resources, he targets the industry and takes it by its horns. ‘Go big or go home’ might even be a mantra he keeps reciting to himself. And to young ambitious entrepreneurs, he might say ‘Just Start’.
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A story is told of a horse once stuck in a pond filled with mud and could not get out. When a few herdsmen inspected the place, they saw the mud would not allow the horse to come out; it was only the strength that the horse could gain mentally and not give up that would bring him back to his feet. They then invented a plan to get their herd of horses to run around the pond to mentally inspire the stuck horse. As the horse saw his friends gallop around the pond, he mentally decided to give his last try- with all the strength he rose and finally was back to feet.
The secret is not in the mechanics of money but one’s level of thinking. Siebold expounds on 100 mindset shifts that have helped rich people accumulate wealth and shows the contrast to how the middle class thinks. Every chapter compares the “middle class” and “world-class.” These terms reference the average person versus the world-class thinker. The idea is to compare the way most people think about money in contrast to the rich. Some of his ideas are as discussed below:
The middle class focuses on saving…world-class focuses on earning; instead offocusing onhow to protect and hoard their money, world-class thinkers direct their mental energy toward accumulating wealth through serving people and solving problems. Secondly, while the wealthy direct their efforts on the most profitable areas of their business as they leverage their contacts, credibility, and resources to maximize the results of every action, middle-class thinkers believe that only hard work creates wealth. He also asserts that the masses believe making money is mysterious while world class-thinkers know that money flows from ideas.
Steve interestingly addresses the issue of formal education and specific knowledge. While the masses are convinced that master’s degrees and doctorates are the way to wealth, the rich have learnt to amass their wealth through the acquisition and subsequent sale of specific knowledge. As the masses spend a substantial amount of time entertaining themselves in a variety of activities, the rich spend time in activities they enjoy. Finally, the masses spend while the rich invest.
From the few examples above, there is nothing wrong with how the average person thinks, they only need to widen their perspectives and think like rich a rich person.
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Kakuma is a fast-growing town in North-Western Kenya hosting refugees, humanitarian workers
and native Turkana people. It is approximately 120km from Lodwar airport linked by a tarmac road
that has been newly constructed. There are
also other groups of people living in Kakuma
for work and business-related pursuits. The
town is mostly hot with temperatures ranging
from 280 C to as high as 360 C and the land is
arid with little vegetation. In such a climatic
zone, one would first presume pastoralism is
the only agricultural venture with sustainable
returns. However, my recent visit has taught
me that there are as many possibilities in
Kakuma as people are living there. I spent
one of my afternoons in a poultry farm that
feeds hundreds of Kakuma residents and
noted some key lessons from my conversation
with the farm owner, Mr Raphael Ewoi.Raphael is capitalizing on his educational
background in nutrition and dietetics,
training in poultry production, hydroponics,
and agribusiness management to run a
2,200-capacity chicken farm. His farm sits
adjacent to his home in a fenced plot where
he has constructed two shelters that make
a home to his birds. In his words, “chicks
require moderation of heat, lighting and
water to survive.” A chicken farm must
therefore be well balanced to provide the
right quantity of each of these three needs
at different stages of a chicken’s life. “There
should as well be proper feeding and a
vaccination program for your chicks,” notes
Raphael in emphasis to how capital-intensive
chicken raring can become.
Right from hatching, through brooding to
maturity, the birds need dedicated care as that
given to a pet. One may choose to specialize in hatching, brooding or raring based on their
gifting in handling chicks. Raphael’s Poultry farm
has a ready market in Kakuma where he supplies
to the neighbourhood, hotels, refugee camp and
to members of NGOs who often order already
slaughtered chicken. Other than chicken sales,
Raphael also sells guano manure whenever he is
clearing his farm. On his bucket list, Raphael is
on a mission to expand his farm to accommodate
5,000 more chickens and create more jobs in his
poultry farm. He believes white meat is the way to
go and he is charting the way from Kakuma to the
world.
Rick Okinda | rickokinda@gmail.com
The writer is a Certified Accountant
working with small business owners to deliver
business plans that serve their management
and financial needs
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Export trade begins when a country has produced
more goods and services than its domestic
demand. It is penetration into new markets
away from home. This does not come without
challenges as many trade agreements need to be
entered before goods and money is allowed to flow
from source to a foreign market. It is therefore a
game of industrial development, building of trade
relationships with other countries and creation of
sound policies to regulate cross – border trade.
The starting point is production of goods and
services at surplus amounts. At the production
stage, a country needs to tap into areas of strength
in order to maximize output. Since international
trade is competitive, focus in producing goods
for exports should be on industries that give
the country a competitive advantage over its
competitors. In this column, I hold the view that
Kenya is performing below average in producing
goods for export.
Kenya’s prominence in the community of nations
is ever rising with outstanding performances in
sports and regional influence. The country also
boosts of rich cultures, phenomenal wildlife,
epic scenes of the rift valley, great lakes and
sandy beaches along the Indian Ocean which
attract tourists in significantly large numbers.
This prominence can be utilized in promoting
“Made in Kenya” brands if they existed. Sadly
enough, so little in supermarket and retail shop
shelves is made in Kenya. Today Kenya imports
almost everything including sugar, maize,
chicken, eggs, fish and pineapples. For decades,
Kenya has enjoyed balance of trade surplus with
its leading trading partners in the region except
for the recent increase in imports from Uganda
and Tanzania without reciprocating the same in exports.
According to world integrated trade solution
(WITS) website, Kenya’s imports are majorly
consumer goods at 63.43% of total imports
whereas capital goods and raw materials only
account for 5.47% and 19.60% of total imports
respectively. Kenya holds potential in exporting
already processed agricultural produce, refined
minerals and services including education,
health and financial services. With the ongoing
efforts to set-up a manufacturing factory for
Covid-19 vaccines, Kenya opens another chapter
of producing pharmaceutical drugs for local and
export markets. The country’s strategic location
in the Eastern Africa region can be tapped in increasing export sales. This will be facilitated by
the ongoing infrastructural developments such as
LAPSSET linking Kenya with its neighbors. Kenya
needs to draw lessons from Dubai which has
successfully diversified its export revenue and has
now mobilized the world to trade with her.
Rick Okinda | rickokinda@gmail.com
The writer is a Certified Accountant
working with small business owners to deliver
business plans that serve their
management and financial needs
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My best days in organizations that I have worked with before are those when we went out to play. Playing together as a team does magic in how we relate with one another, how we perceive work and the potential we realize in ourselves. Whether it is in a room somewhere or out in the natural environment, well-organized team building delivers many positive returns in uniting colleagues into one family. It is a sure approach in promoting working relationships that are needed in getting things done. Team building events can be coupled with training sessions where other disciplines like planning, time management, effective communication and resilience are taught. These sessions can also be utilized to promote the desired organizational culture or simply to break the ice between senior staff members and their juniors.
In a world where people want more leisure and less work, organizations need to find a way of making work interesting. Making work interesting is a journey. First is forming interested teams, then creating a winning atmosphere in the team. This will take a well-thought plan to execute. A professional team-building trainer will help you identify the right venue, relevant activities to be done, share key-note motivational talks during the team building event and play the master of ceremonies role throughout the sessions. In most cases, a team-building trainer with sufficient experience in the profession tends to meet diverse goals of team building when involved from planning stage. Surprisingly, a trainer may end up helping to cut costs by playing a liaison role in securing venues, public address systems and related logistics that may apply in different forms of team building.
One of the best team building trainers of our days is Mr Vincent Ochembo who is known as Vincent The Trainer (VTT) in the industry. Vincent is a multi-talented team-building trainer based in the Coastal City of Mombasa. According to Vincent, a team that plays together wins together. He has previously hosted teams from different organizations including Government, NGOs, Parastatals, Corporations and Small groups as an MC and as a team-building expert. On his Facebook timeline, Vincent Ochembo posts some of the activities that he gets the teams to do and the venues where he has hosted team-building activities. He is reachable via ochembovincent2014@gmail.com. Vincent is the founder and lead trainer at PLC LTD.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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Is there a diet for a particular blood group? Do blood types; A, B, or O, chemically interact with particular nutrients in food? And do specific foods for particular blood types get easily digested, aid in weight loss, and help prevent diseases? These are the inquiries made over the years concerning this diet.
A blood type diet is a plan that assumes specific dietary recommendations based on one’s blood group and limits consumers to eating foods that are harmonious with their blood type. These diets have been in existence for more than two decades now. This idea was created by naturopath physician, Dr Peter J.D A’demo in the year 1996. In his book ‘’eat right for your type’’ he claims that there are diets and exercise regimens based on blood group systems. These diets are endorsed as programs to ensure adequate digestion, facilitate weight loss, and improve health.
Blood type diet Plate Dr Peter claims that each blood type represents genetic traits of our ancestors, including which diet they evolved to flourish. He outlines that each blood group should eat as below;
Type A: ''Agrarian or cultivator diet''. Eat a meat-free diet rich in plants closely resembling a vegetarian diet.
Type B: Nomad diet. Eat plants, dairy and most meats except chicken and pork. Avoid wheat, corn, lentils, tomatoes, and a few other foods.
Type AB: Enigma diet. Made of types A and B. Includes; seafood, tofu, dairy, beans, and grains. Avoid kidney beans, corn, beef, and chicken.
Type O: Hunter Diet. A high-protein diet encompassing meat, fish, poultry, certain fruits, and vegetable. Limited in grains, legumes, and dairy.
Dr Peter also claims that Yoga and Ti Chi are good exercises for Type A and aerobics like jogging and biking are good for type Os.
The scientific evidence behind Blood type diets is negligible. Research shows the increased vulnerability of certain blood types to particular diseases e.g the ABO association with Pancreatic Ca, venous thromboembolism and myocardial infarction. However, there is also no evidence that adherence to blood type diets will provide health benefits. Advertised health benefits are therefore theoretical and not supported by scientific evidence.
Despite blood type diets prompting some level of efficiency by omitting the majority of unhealthy processed foods from people's diet, they do not address particular health conditions and following a particular pattern may also risk the consumer to nutrient deficiencies.
Argwings Chagwira Muliro
The writer is a nutrition and wellness professional who is focused on conducting detailed nutrition consultations and creating personalized meal plans to meet the needs of his clients | am.chagwira@gmail.com
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The Small Claims court is a game-changer to the commercial sector in Kenya. With the introduction of this court, individuals being owed ksh 1 million and below have a reason to smile since they can quickly recover the sum through judgement and execution of orders from the Small Claims Court. This Court was established under the Small Claims Court Act of 2016 which has recently undergone several amendments. The court became operationalized early this year after being launched by the then Ag. Chief Justice Philomena Mbete Mwilu. This is a subordinate court in the structure of the court system under Article 169 (1) of the Constitution of Kenya. This court has a monetary jurisdiction of matters not exceeding Kshs 1 million. The judiciary has established the court as part of an initiative of creating the ease of doing business environment in Kenya. The move is set to attract small and medium scale investors into the Kenyan economy due to the assurance of a simple, inexpensive and expeditious commercial dispute resolution mechanism.
The structure and the dispute resolution process is created in such a way that it enhances access to justice to all. The pleadings used to approach the court and response to claims filed before the court by the claimants are provided for under prescribed forms in the Rules of the Court hence no hustle of drafting complex documents as required in the other subordinate and superior courts. The settlement of disputes takes only 60 days hence expeditious enough to allow the litigants to proceed with their business without incurring unnecessary legal costs arising from lengthy litigation. It is therefore important for all business communities composing both local and foreign investors seeking to start up businesses in Kenya through any specials purpose vehicles for commercial transactions to be fully aware of the operations of the Small Claims Court.
The main objective of this court is to guarantee the right of access to justice as envisioned under Article 48 of the Constitution of Kenya. The underlying values and objects of this court to the business community is the simplicity of procedure to the extent of making it easy for the litigants to represent themselves, timely disposal of suits, impartiality and fairness of the process. Litigants are not required to pay any court fees hence the court allows those who cannot afford legal costs to have equal access to justice. It, therefore, behoves everyone to be fully aware of the running and operations of the court for improved business transactions in the country.
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On 15thof September 2021, the Central Bank of Kenya Governor Dr. Patrick Njoroge presented to the senate committee on finance and budget status of Kenya’s public debt. He began by discussing the evolution of Kenya’s public debt. He highlighted that Kenya’s public debt to GDP ratio declined from 64.1% in June 2003 to 38.1% in June 2012, but increased thereafter driven largely by spending on infrastructure and more recently, Covid-19 related spending. Total debt service to revenues on the other hand increased to 57% in 2019 from 17% in 2012 due to increased debt stock and changing terms of new loans including one-off repayment of syndicated loans and Eurobond in 2019. The trend is expected to reverse in the medium term due to improving terms of new loans and the restructuring of external commercial loans that have heavy maturities and high interest costs.
The structure of Kenya’s external public and publicly guaranteed debt changed significantly between 2010 and 2020, with increased uptake of commercial debt to improve Kenya’s presence in the international financial markets and thereby sources of external financing. Recent efforts to increase Kenya’s concessional public debt to a 10.1% increase in proportion to multilateral debt from 30.2% in June 2019 to 41.3% in June 2021. The leading bilateral lender to Kenya shifted from Japan to China between 2011 and 2020. In 2020, major bilateral lenders to Kenya included China, Japan and France at 67%, 14% and 7% respectively.
The leading causes of increased indebtedness as noted by the central bank governor are three. First is increased fiscal deficit largely due to development expenditure such as infrastructure, second is recurrent expenditure like education and health, and third is increased guaranteed debt. Other causes of indebtedness are exogenous economic shocks like drought and Covid-19 and the worsening terms on new loans such as lower concessionally and increased commercial loans. In Dr. Njoroge’s submissions, he noted that limited capture of the returns on expenditures by government (capital investments) through increased exports, taxes and faster economic growth is a matter of overarching concern. He summarized his presentation by underscoring five remedial actions in reducing the debt burden. The five include staying the course on the fiscal consolidation path, exploring non-debt financing options for public investments, increasing efficiency of public spending, frequent reporting and monitoring and lastly refinancing operations by refinancing expensive debt with debt on more valuable terms.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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At Fifty-Nine years old, it is curious to find that Mary Barra, CEO of General Motors (GM), has only ever worked at one company. Hers is a very unique career path, meandering through functions like Operations, Human Resource and Management at various levels. She has earned her spot in several leadership classes as a reference point for young upcoming global leaders and is an encouragement to current industry leaders. The big question at this point is, what exactly makes her stand out and why does she keep going?
Mary joined General Motors as a co-operative education student in 1980 at Eighteen years old. Five years after finishing her degree in electrical engineering, she received her MBA from Stanford University in 1990. She then went on to hold positions such as: Vice President of Global Manufacturing Engineering; Executive Vice President of Global Product Development and Vice President of Global Human Resources. It may seem that she kept gaining skills that would be helpful, even critical in her current position, but that is only in hindsight.
In every position Barra found herself in, her drive was being thoroughly accountable for what she was entrusted with. Healthy work environments were fostered wherever she went and her ability to easily adapt enabled her to make necessary adjustments when it came to it. As the head of HR, she reduced the long dress code to two words: ‘Dress Appropriately’! She would also allow junior managers and co-workers to make independent decisions as pertaining their responsibilities. In this way, she believed that she was empowering and allowing them to be responsible.
One might say that Barra’s leadership abilities have been tested in crisis. In 1998, there was a GM strike, and Barra was appointed the Internal Communications Director. With her leadership style, there was a forum where information could flow up and down the hierarchy and situations could be dealt with up-front. After her appointment as CEO, disaster struck again. A faulty ignition switch led to deaths and recalls of over 30 million cars. She faced the situation head-on, admitting errors made, laying off workers, appearing before the senate and adjusting policies to enable early reporting of problems. Instead of drowning in chaos, she was able to rise by putting lives first and by her own motto, being accountable enough.
We, alongside millions of people, will continue watching and learning as Mary Barra revolutionizes leadership globally.
Purity Buyanzi | The writer is an aspiring Financial Analyst, passionate about leadership and mentorship | puritybuyanzi@gmail.com
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Jimnah Mbaru, a renowned investment banker working with Dyer and Blair provoked a discussion this month on twitter when he tweeted, “The Central Bank of Kenya should reduce the current cash ratio from 4.5% to 0%.” He argued that this measure will result into increased liquidity within banks with a reduced cost of credit. In Jimnah Mbaru’s view, banks would increase lending to private sector at lower interest rates. The investment banker is of the opinion that the existent threat of inflation with such a fiscal policy is not a concern at the moment.
I find Jimnah Mbaru’s opinion to be good for a country that is grappling with a high rate of unemployment. When the mission is to fix unemployment of both people and resources, inflation becomes of less concern. The Philips Curve in economics proves this by displaying inflation and unemployment as indirectly proportional variables when placed on the Cartesian plane. However, the educated opinion of Jimnah Mbaru received sufficient criticism from other scholars and public intellectuals in Kenya. Of top concern is whether commercial banks will utilize available cash to lend to the private sector. This question is raised in the backdrop of a trend where commercial banks in Kenya lend largely to the government of Kenya. To lend to the national government would not be inappropriate if government utilized the funds in capital resources other than repayment of external debts that have fallen due.
Dr. David Ndii in response to Jimnah Mbaru’s opinion posed a rhetoric, “a monetary stimulus over and above an 8% of GDP budget deficit or a stimulus running for close to a decade?” While Jimnah Mbaru applies theory of the Philip’s Curve in economics to solve the unemployment question, it remains a paradox how structural productivity problems, external shocks related to Covid-19, crowding out, debt overhang and political uncertainty will be solved by increasing supply of money in the economy through lowering central bank’s current ratio from 4.5% to 0%. A balance between inflation and unemployment needs to be sought where measures taken to reduce unemployment do not adversely affect inflation. The buck stops with the Central Bank Governor, Dr. Patrick Njoroge who also chairs the Monetary Policy Committee.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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Art is a rich sector with potential to create employment to many youths and women across all cultures. In this column I will highlight some of the prominent sub-sectors in art, possible returns at an average scale and rate at which opportunities for selling artwork come. The eight most prominent industries in the sector of art include; craft industry, performing arts, designer fashions, photography, music industry, interior design, visual art and film. Some of these sub-sectors are complex while others are simple and less sophisticated yet each has its unique dynamics.
In the music industry, an average musician in Kenya is likely to record music every six months, get a gig at least once a month and earn averagely Kes.50,000 per gig. The average musician is likely to use live performances and side hustles to make ends meet as recording alone may not generate sufficient revenues to sustain them. On the other hand, an interior designer takes about two assignments a month and charge a fee ranging from Kes.80,000 to Kes.300,000 per assignment. Most interior designers work freelance or get hired by real estate companies.
Visual artists work in small teams, they open studios and sell paintings at a fee ranging from Kes.500 to Kes.150,000. They participate in competitions and market their art work online. Similarly, film makers work in larger teams of about 30 to 300 people but take longer to release a production. Film making requires large investments and involves complex work. A project is likely to cost an average of Kes.1,500,000 and take seven to eighteen months producing. Photographers work freelance and get gigs almost weekly. They are prominent on instagram and earn between Kes.40,000 to Kes.80,000 per month. They show up in events, photo shoots and adventure safaris. Some own studios.
The craft industry is largely associated with women from rich cultural backgrounds in rural parts of the country. They work cooperatively in groups, they make objects of craft such as baskets and sell them at very low prices. Youths are prominent in fashion design where they run labels with a network of tailors for their designs. Their sales are highly dependent on seasons and rely heavily on social media to advertise. Product pricing depends on their brands and they like participating in competitions. Art is a large sector but not without challenges especially in mobilizing capital, remaining competitive and appropriately pricing products of art.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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The financial brand is an online publication that focuses on marketing and strategy which aims at delivering ideas and insights on a white range of issues involving the retail banking industry today.
The Webinar presenters were Kris Frantzen (VP Product Strategy Temenos), Joseph Pellissery (CIO Wescom Credit Union) and Jim Marous (Owner Digital Banking Report). Together they took turns to describe the paradigm shift that is being experienced in the digital market where it is no longer all about technology alone but investment in the consumers’ emotions too. While COVID-19 pandemic increased the technological demand of business transactions it also increased the expectations of the experience. The three presenters agreed that the best digital experience happens when it is humanized; that calls for communication and involvement. Forums need to evolve and become more interactive than ever before.
Although the webinar majorly focused on transforming the banking business, the ideas discussed can be applied in any other kind of business that desires to bring human experience to the digital realm. Some of Key elements of digital transformations were highlighted as follows:
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Use data and advanced analytics to drive decisions and engagement.
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Simplify all engagements. “Satisfaction is now determined by simplicity, speed and empathy as opposed to a friendly face” Jay Baer, founder of convincing and converting.
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Foster an innovative mindset- it distinguishes a leader from a follower
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Invest in modern technologies, create new back-office processes, re-skill and retrain the workforce; hire for skill, not just academic qualification and provide digital leadership
The three presenters particularly emphasized the element of simplicity when it comes to the transaction of business. This is important as consumers want “everywhere anytime” engagement; hence speed simplicity and empathy is the new convenience. Simplicity helps a consumer to enjoy one stop complete experience since services have been summarized and integrated to fit their needs as customers.
Finally, Humanized Digital Experience involves being interested in establishing a relationship with your customer as this helps to reap a harvest of loyalty irrespective of any challenges that may come along the way. In other words, what each customer is saying is “show me you know me.” This calls for shifting technology from being product-centric to being member-centric. This can be achieved by pursuing to make each experience personable and memorable. Business should never be a matter of what you sell but whom you serve- Bob Farrrel.
Esther W. Njaramba
The writer is a Counselling Psychology graduand from Kenyatta University who works with individuals and groups to see to it that they lead satisfying and happy lives׀njarambaesther3@gmail.com
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Myths and Realities of Teamwork is a library of insights from a man who has spent thirty years building teams in organizations. Mr. David Wright focuses on Key milestones that mark a team’s journey to high performance without failing to not that there are myriad pitfalls and challenges on the way. He underscores that even in a very strong team environment, an individual’s needs cannot be ignored. Myths and realities of teamwork are explained objectively and in a realistic approach. For mature teams, the book gives bearing of what needs to be done in recapturing that early enthusiasm and respect that may have been witnessed when the team was new.
The most prominent myths about teamwork in David Wright’s book are six. The first myth is that teams are harmonious people. The reality is, teams are made of diverse people with specific needs to be met. Second is that team conflict is unhealthy, the reality is that conflict should be harnessed for common good rather than be suppressed. Third myth is that people like teamwork, Wright observes that some people like working solo while others are indifferent. Fourth Myth is that teamwork is essential for business success, in real sense some simple tasks need no teams and that teamwork only thrives in complexities. The fifth myth is that teams are easy to influence and manage, Wright notes that in reality teams require courage and high levels of personal awareness from its leaders. Lastly, it is a myth that senior managers encourage teamwork, the reality is that most senior managers are anxious about teamwork and the potential loss of power or control.
The Irish writer and alumnus of Trinity College in Dublin suggests twelve milestones that must be achieved in a fruitful journey of a team. The twelve include; burying myths and raising realities, understanding organization culture and team’s potential starting point, establishing team goals and vision, establishing ground rules for effectiveness, meeting skills and positive contributions, recognizing the team processes, developing team skills that will aid success, defining the team roles beyond pure functional roles and predicting future success or failure, understanding empowerment and its place, having level of openness and trust, embracing high performance and understanding the practice of leadership for all. David Wright acknowledges that building an effective team is akin to taking a journey and members of the team must experience the journey together.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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Alvin Mbugua
In August 2021, Diageo PLC, a British multinational alcoholic beverage company with operations across the globe, appointed Alvin Mbugua to the position of General Manager in the Caribbean and Central American region. Mr. Mbugua, a Kenyan with experience of over seventeen years in the oil and gas, logistics, and FMCG sectors is rising to the apex of his career with this appointment. Alvin Mbugua has been the Managing Director of Uganda Breweries Limited which is a subsidiary of East African Breweries Limited, EABL. Other key positions held by this corporate titan at Uganda Breweries Limited include Head of Sales and the post of Finance and Strategy Director. He also served as the Group Financial Controller for EABL, Chief Finance Officer for East and Horn of Africa at Damco, and a Chief Finance Officer at Shell Tanzania where he started as a Systems Financial Consultant.
The successful career of Mr. Alvin Mbugua is built on a backdrop of key academic qualifications. He went to some of Africa’s best business schools and ventured into disciplines that sharpened his acumen for enterprise development and leadership. Alvin Mbugua graduated from the University of Nairobi with a bachelor's degree in Geospatial Engineering and later pursued ACCA, Accounting, and Finance at Strathmore Business School in Nairobi. He is also a holder of Masters in Commerce in Development Finance from the University of Cape Town, a qualification that has given him sufficient capacity to work as a top business executive in leading companies.
In the words of Alvin’s former colleague at Damco, Mr. Mehul Bhatt, "Alvin is a leader, and a fantastic one at that. He is focused, extremely positive, and a fantastic change agent. His understanding of the business coupled with his strategic mindset and his ability to inspire his team is extraordinary.” It is rare to come across someone with such a unique combination of intellect, drive and influence that Alvin Mbugua possesses. Alvin Mbugua’s appointment to the position of General Manager in the Caribbean and Central American region at Diego PLC places him on the global league of business executives of our times. He is not only a portrait of intellect in business leadership but also an inspiration to young African professionals who dream to participate in international business.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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World breastfeeding week has been monumentalized every 1st week of August since 1990. This year’s theme was; Protect breastfeeding; a shared responsibility. This advocacy is an initiative by WHO and UNICEF to create a consensus that supports, promotes, and protects breastfeeding because it is the best nutrition tool for the growing baby. The World Alliance Breastfeeding Action (WABA) stated that this year's objective was geared towards informing people about the importance of protecting breastfeeding, anchoring breastfeeding support, engaging with individuals and organizations for greater impact, and galvanizing action on protecting breastfeeding to improve public health.
Benefits.
Breastfeeding is beneficial for both the infant and the mother. Breast milk protects newborns from infections, improves immunity, facilitates optimal growth and development, and cushions babies against chronic diseases like diabetes later in life. On the other hand, breastfeeding mothers are less likely to develop ovarian and breast cancer, easily lose their postpartum weight, and regain their normal shape. After birth, it is recommended to exclusively breastfeed a baby during the first six months and then continue with complementary feeding, until 24 months or longer, if it suits both mother and baby.
Support.
Partners can help mothers with the domestic workload as well as with the caring of the baby. Doing hands-on with activities such as baby bathing, changing diapers, burping, shopping, and meal preparations, and helping out on house chores is a great form of support. At the workplace, it's important to create an enabling environment such as implementing the maternity and paternity leave policy, providing lactating and/or milk expression rooms, and being breastfeeding cheerleaders etcetera. International Labour Organization (ILO) has passed three maternity conventions including paid maternity leave (which recommends 18 weeks) which undoubtedly allows mothers to exclusively breastfeed. Fewer countries have ratified it so far and it remains a challenge for women working in the informal sector because of the high risk of losing their jobs.
Protection.
To protect breastfeeding, the regulatory measures regarding maternal leave policies, workplace support, ban of formula milk marketing, and implementation of baby Friendly hospital initiatives (BFHIs) must be fully adopted and implemented. The implementation of leave policies by Sweden, the ban of formula milk marketing by Bangladesh, and the implementation of BFHIs by some countries are a few milestones to realizing this agenda. In Kenya, the milk breast milk bank in Pumwani hospital is a way to protecting and enabling breastfeeding to some degree.
Argwings Chagwira Muliro
The writer is a nutrition and wellness professional who is focused on conducting detailed nutrition consultations and creating personalized meal plans to meet the needs of his clients | am.chagwira@gmail.com
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Why Aid to the Poor Should Aim At Freeing Them from Poverty
What does it mean to be a Kenyan? And not just any other Kenyan but a poor Kenyan. What chance does a poor person have in life? Born into poverty, hungry from birth, angry and confused. About 35.5% of Kenyan citizens live below the poverty line. If you are constantly struggling financially, you are not middle class, you are poor. The middle class is not a living condition, not a profession, it is the amount of disposable income, not the income you had before you paid your rent, mortgage, and other utility bills.
Poverty makes one gullible, it robs one of the free wills to make independent choices. It prompts one to make irrational and extreme decisions which may have not been the case if the circumstances were different. Because of this gullibility, the poor are often used as scapegoats by greedy politicians and corporates to foster their sinister agenda. What if we abandon the habits of reducing the poor into scapegoats and we take our time to find out, which kind of help they need. What if we try to understand their lives, complexity and richness? Is there not an alternative way to approaching poverty without necessarily creating class differences?
The rich play to win, the poor play to survive. The rich amass more wealth by investing more, the poor on the other hand sees surplus as an opportunity for consumption rather than investing. It is not enough to mobilize funds for the poor, we need an economic mindset that emancipates the poor from the mindset that surplus is all about consumption.
We need to find better approaches to solving poverty. Taxing the rich isn’t a solution either, we cannot afford to penalize parts of the society for their efforts in the economic playfield. A tax system cannot be structured around the concept of wealth redistribution alone.
We ought to move from an end in itself to a means to an end. If you want to help a poor person, give him the means to be able to help himself next time without necessarily running to you. 'Those who come with wheat, millet, corn are not helping us. Those who want to help us should give us plows, tractors, fertilizers, insecticides, watering cans, drills, and dams' that is how Thomas Sankara defines food aid. He who feeds you controls you, let’s give the poor their freedom by offering true aid.
Daisy Tum
Writer is an economics student at Kenyatta University | daisytum7991@gmail.com
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Hosted By KCB Biashara Club On 7th January 2021.
The webinar aimed at equipping entrepreneurs with tactics needed to acquire customers, manage and retain them within the organization. It identified customers as critical people in generating sales that earn the business revenue. To ensure customers are well served, a business needs to adopt processes that help one to serve customers, optimize costs and manage cash flows. These processes need to be executed through people who have the appropriate skills to serve the customer.
The journey of customer acquisition begins with employing the right sales tactics, then recruiting customers. Recruitment of customers helps you to populate the customer database. You will need to develop skills and capabilities to handle customer databases and customer relationships. To have an efficient team, you will need to reward and remunerate them so that they can deliver great customer service. This team should be organized and given effective management and coaching for performance. A sales team that is motivated and focused on productivity should also be constituted and supported with well-outlined forecasts and plans.
In conclusion, the presenter emphasized that in building a customer-focused organization one needs to appreciate their customers and the people employed to serve the customer. The summarized lifecycle of customer relationships starts with the acquisition and retention of profitable customers. Winning back customers who are in the database but have not made purchases for a certain period and engaging them so that they can be active consumers of your goods or services. For customers who have turned out to be non-profitable, you need to up-sell additional products in a solution offered to them, cross-sell other products to the customer and ensure they are satisfied at consumption. Ask for referrals from your satisfied customers and reduce service and operation costs to widen profit margins.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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The universality of this book makes it a must-read. It explains the essential point and tactics in a war that can be utilized to face our day-to-day challenges. Although it was written 2500 years ago it remains to be the most influential book in military strategy and its application is way beyond the military field. It teaches both strategic and leadership qualities to look out for no matter what you do.
The business environment being a modern war fair, some of the insights in this book can be applied by a business leader. Art of war teaches us to lay down plans and rely not on the likelihood of the enemies not coming but on our readiness. This entails knowing yourself and your enemies; who are you dealing with, their strength and weakness. The more knowledge you have about something or someone the better you get.
Money and lives are finite so they are not to be used recklessly don't burn resources or kill soldiers that may give you information, use whatever resource you have wisely. Attack him when he is unprepared and appears where you are not expected. Avoid what is strong and attack what is weak. Always wait for the opportune moment when you can fight. You can win wars without having to battle.
To win in business, it's all about strategy and planning. A good general seeks victory and not a battle, attack their enemies’ point of weakness, the plan remains secret, your army obeys, you communicate effectively, find a weakness of your men and strengthen them and know where to follow and when to fight. If your victory is a clear fight, don't seek fame and fear blame, if your defeat is certain do not fight.
Knowing yourself and understanding war can make you conquer any business niche and win. I conclude my review by quoting Sun Tzu, the author of Art of War when he said, “To win hundred victories in one hundred battles is not the acme of skill. To subdue the enemy without fighting is the acme of skill.”
Effie Odhiambo
The writer is a finance professional with passion in reading books that make difference in an entrepreneurs career. | odhiambo1270@gmail.com
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We all love to feel good about the sweet scent, the warmth of family, and the marvel of architecture that makes our homes. Whenever we arrive, we are greeted by a first impression that is often a blend of buildings and vegetation. The impression goes a long way in determining the quality of life we lead in our homes. In this feature, we have observed that best impressions are inspired by clean walkways, pavements, roofs, walls, and lawns. Without shouting, a clean home promotes relaxation of the mind and adds happiness to life. In Nairobi, a cleaning firm led by Mr. Brian Ogutu has realized the role that cleanliness plays in making a home. The Nairobi-based firm, Clean Roof Masters, offers cleaning services for exterior surfaces of buildings using a simple pressure-pump technology fused with a skilled workforce. This has helped Brian and his team to avail quality roof, wall, and pavement cleaning services to their growing list of customers at affordable rates.
If the clay tiles or iron sheets covering your house have become less attractive over time or if the gutters that help you harvest rainwater are clogged, Clean Roof Masters has invented a solution for you. You need not replace the roof. A thorough cleaning is sufficient to restore the brightness that sparkled on your roof as when it was new. Clean Roof Masters also deals in the cleaning of water tanks, chimneys, pavements, walkways, walls, and drainage systems. The firm has employed the use of social media to connect with its customers. Its YouTube and Facebook platforms showcase its previously undertaken cleaning exercises through short illustrative videos.
What can be more attractive in a home than a clean roof over your head? Don’t we all want chimneys with no cobwebs, neat walkways and driveways, functioning drainage systems, and gutters with no blockages? Perhaps it costs a big chunk of money to build or buy that house, but to maintain its exterior beauty only needs a phone call to Clean Roof Masters. Email via cleanroofmasters@gmail.com or call +254 7 12 637 697 / +254 778 704 379. The business of clean roof masters is making yours shine and that doesn’t have to cost you more than a bar of chocolate for every square foot that you need to be cleaned.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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When news came in that Africa's second most populated country was liberalizing its telecommunication market, everyone seemed interested. This liberalization, as termed by MTN Group, seemed to be the world's last and largest telco liberalizations in world history. The privatization involved issuing two private telecommunication licenses as well as selling a minority stake in the state-controlled Ethio Telecoms. True to this, Africa's largest telecoms teamed up with financiers with deep pockets to snap up one of the two licenses. Then came the shocker, the operating license did not include mobile money service. The license's attraction diminished, leaving two major contenders, a consortium led by MTN and that led by Safaricom.
As things stand, Safaricom was issued with the first license after parting with $850 million. MTN’s bid was turned down, having bid $500million. The state monopoly embarked on its mobile money segment, Telebirr netting in more than one million subscribers in its first week. To sweeten the bid for the remaining license, Ethiopia has incorporated the mobile money service. This as communicated by the communication ministry, will also be included in Safaricom’s initial bid. As we await more competitive and possibly higher bids, the country has also invited bids for minority interests in its state-owned telecom, Ethio Telecom. The interested bidders in this line have been Orange and Etisalat.
To evaluate how lucrative mobile money is to African telecoms, we shall look at key developments in the continent. Kenya prides itself as the pioneer of mobile money business on the continent and the world. In 2019, Vodacom and its associate, Safaricom, bought the M-PESA brand, product development, and support services from Vodafone. The Mpesa brand's value is estimated at $15.6bn when compared to multiples at which Airtel sold.
In 2021, Airtel Africa embarked on selling minority stakes in its Mpesa division attracting investors (Mastercard & TPG) bringing in a total of $300million. This has valued the enterprise at $2.65bn as it looks to sell a total of 25% stake.
Therefore, mobile money is an essential component for any telecommunication company in Africa going forward. With this in mind, the value of mobile money for telcos such as Vodacom has not been fully reflected in its shares when compared to Safaricom whose share has been on an upward trend since its listing. Something worth noting is that telcos eye improving their mobile money market shares since investment costs are low compared to other segments such as home internet and communication towers.
Brian Shikuku| The writer is an investment professional interested in financial markets, alternative investments and financial education. |bransikafrica@gmail.com
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The agricultural sector is the least funded sector in Kenya despite being the largest in terms of GDP contribution (at over 50% GDP contribution, directly and indirectly,). With an estimated 8.5 million people in Kenya engaged in some form of agriculture, the choice of capital to finance agricultural activities has been solely left to credit institutions, thus limiting a farmer's choices, forcing him to put up with the sale of assets, alternative incomes and social networks. Inadequacy of financing tools in aspects such as inputs, working capital, and mechanization leads to inefficiency in the value chain and thus resulting into chronic food shortages.
Take the example of maize farming in Kenya. This is mainly done by small-scale farmers across the nation without any profound distinction, a second example is a livestock in the Northern parts of the country. Sales occur through local markets with only a small percentage going through cooperatives. Financing agriculture subsectors would cause a boost in the reorganization of the agricultural field, with quality and quantity yields being a bargaining chip for higher sales and more money for farmers.
Kenya is ripe for fresh modeling of agricultural financing to incentivize both financiers and farmers to take on investment risks. For starters, there's a need to establish a framework to assist vulnerable and rural smallholder farmers to reduce risk and increase investment in their farms. Through strong partnerships and innovative insurance products, farmers can manage controllable risks and are supported through insurance when disaster strikes. There's a need for a stronger public sector presence in the agricultural sector through rural finance in avenues such as agribusiness and providing utilities while also offering loans and related services at competitive prices to farmers.
Farmers will adopt diverse agricultural practices, stagger planting over time, plant resilient crops, and have multiple sources of income to mitigate the risks associated with losses to their livelihoods. While these methods may offer some sort of resilience, factors such as climate change, natural disasters, and pest infestations can leave farmers with no hope for financial recovery, driving them deeper into poverty.
With the agricultural sector being among the first to be devolved to county governments, food security has once again been put at the forefront of the nation's agenda. Agriculture would be an important sector in the alleviation of poverty therefore stringent measures on financing the sector would go a long way in achieving recovery and growth in Kenya after recent years of drought and slow development.
Paul Oreje
The writer is a final year commerce student at Kenyatta University | pauloreje1996@gmail.com
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Written in the year 2000, Malcom Gladwell’s book brings out things that are current, relevant and relatable. He brilliantly explores the tipping point phenomenon which is a magic moment when an idea, trend or social behavior crosses a threshold and spreads like wildfire. He highlights the three rules that causes something to reach a tipping point. The three are the law of few, the stickiness factor and the power of context. In this review, I’ll highlight important points that Gladwell made in each of the three defining factors for an idea to grow to the tipping point.
The law of few states that any kind of social epidemic is heavily dependent on the involvement of people with a particular rare set of social gifts. These social gifts include connectors, mavens and salespersons. Connectors they are people who know everyone and connect people to the world. Mavens are people that we rely upon to connect us with new information and salespersons are people who influence us to buy and change our perception. These personalities for only 20% of the society but tend to influence 80% of the outcome.
The stickiness factoris the quality that compels people to pay close sustained attention to a product, concept or idea. If you want an idea to spread you must make sure it sticks, make it stand out from the crowd. Sometimes changing the small details makes a big difference.
The power of context suggests that behavior is sensitive to and is strongly influenced by its environment. Malcolm Gladwell gives an analogy of the broken window theory which argues that a crime is an inevitable result of disorder. If a window was broken and left unrepaired people will think that no one cares and more windows will be broken. Minor problems are recipe to bigger ones.
Ideas always spread like epidemic, epidemic starts after crossing the tipping point threshold, few people start the epidemic, an idea must stick before it can spread and the smallest change in context will determine whether an epidemic takes off or not and this can currently be relatable to our business.
Effie Odhiambo
The writer is a finance professional with passion in reading books that make difference in an entrepreneur’s career.| odhiambo1270@gmail.com
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The webinar dissected into the subject of money which has been perceived to be a course of discord among couples. Sylvia Watford who was the presenter in the webinar suggested practical ways of building financial harmony in among couples. Silvia is a Senior Financial Education Specialist and her thoughts in the webinar were as follows:
Foremost, Sylvia Watford recommends partners to understand each other’s relationship with money, how they view it, their biggest financial concerns and their decisions regarding money that they are likely to agree with.
Secondly is value. What are your values and your partner's values? Identifying your values helps you to identify your unconscious beliefs that control how you spend, this will enable you to align your money with values so as to accomplish your goals and dreams.
Brainstorm your goals with your partner, you can do this individually then jointly this gives room for negotiations and realizing what are your "SMART" goals as a couple. Sylvia Watford made this approach her fourth suggestion in the webinar that sought to educate couples on fundamentals of financial harmony.
Fifth is to constantly communicate and discuss your finances to eliminate distractions and hold each other accountable.
How will you manage your money? There is no right way or wrong way, couples should have a conversation of whether they would love to combine everything , completely separate everything or have an hybrid plan where there is ours, mine and yours.
The webinar advised couples to assign roles on who will handle what in their common financial plan. Harmony as a couple is attainable if you keep the end and the beginning in mind ,visualize success ,stay organized, be realistic ,monitor your progress, manage setbacks and reward yourself along the way.
Effie Odhiambo
The writer is a finance professional with passion in reading books that make a difference in an entrepreneur’s career.| odhiambo1270@gmail.com
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In a financial world that is increasingly open and subject to technological advancements, modern-day lending has been taken a notch higher with the creation of digital platforms that have made loan acquisition convenient in terms of speed. Mobile money services such as M-Pesa allow customers to deposit, borrow and transfer money. Digital lenders such as Tala and Okash have not been left behind, as they have set up shops in Kenya, offering quick loans usually processed within 24hrs or even less through mobile phone applications. They understand that time is money for individuals and small businesses and that with quick decision making and a slick customer experience they can win the business. With the Covid pandemic cutting down the availability of cash for individuals and capital for small businesses, borrowers are willing to risk higher debt for a quick turnaround to offset cash flow deficits.
The infiltration of the market by digital lenders has swarmed borrowers with higher interest rates, leading to mounting defaults and an increased number of defaulters listed with the Credit Reference Bureau (CRB). Many consumers do not understand loan computation, only realizing the financial burden when the loan is due. In extreme circumstances, digital lenders have gone ahead to publicly shame debtors by calling friends, colleagues, and family, creating additional pressure to repay loans. Digital lenders have taken advantage of the absence of proper regulation to run businesses as they deem fit to the detriment of consumers.
Whilst it’s impossible to go back to the old bank-driven system which is time-consuming and excludes a given portion of the population, it is unfair for the citizenry to continuously pay for the financial experimentation of tech startups. There’s a need for a sound regulatory system that makes digital credit responsible. Enactment of laws that require digital lenders to submit product pricing to the Central Bank for approval before launching to lower interest rates and a further capping of non-performing loans to avoid an increase in the amount payable due to late payment would go a long way into creating relief for consumers. Additionally, having all digital lenders under one regulator who exercises oversight on the sector, licenses players will bring about order in a rather chaotic industry.
Paul Oreje
Paul Oreje is a final year commerce student at Kenyatta University | pauloreje1996@gmail.com
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Private equity (PE) is a developing feature in many African markets whose growth is facing many lips and bumps in a public that grapples to understand it. Coined from their private nature of raising and investing funds, PE firms, instead of approaching banks and the capital markets to raise funds, approaches sophisticated investors. They promise a return slightly higher than that offered by traditional assets which include government securities among others. Centum, is an example of a private equity firm in Kenya and has historically invested in private companies such as Isuzu East Africa, Almasi Beverages and Nairobi Bottlers.
Currently, one of the PE firms, Cytonn, is in the spotlight for failing to meet its obligations to investors. Founded in 2014, the firm has experienced its highs and lows. I credit Cytonn for raising billions of shillings in a record short time. For instance, as of June 2021, two of its unregulated products (CHYS & CPN) had an asset-base of Kes.15.9bn vis-a-vis liabilities amounting to Kes.14.3bn. So is all the heat and condemnation on Cytonn warranted?
Most Private Equity funds invest in long term projects with characteristic challenges arising from their long life. In Cytonn’s case; there is value, only that the Cytonn promise was over ambitious with time. Cytonn recruited clients with short term views to finance its long term portfolio, exposing itself to liquidity risk and a tarnished reputation. Coupled with a slumping market for real estate, they have to attract new strategic investors to boost liquidity. Its short-term minded investors remain with few options, such as converting their debt into residential units, extending the maturity periods or taking legal action.
I opinion that we blame the Capital Markets Authority (CMA) for being the proverbial dog that barks without biting. In cases such as the Atlas Africa Industries where CMA failed to enforce proper financial reporting. CMA watched Imperial bank’s floatation of bonds worth Kes. 2bn only for the bank to go under a month later. Commercial Banks on the other hand have brainwashed fixed deposit investors by offering them peanut returns on their “safe” investments. Investors are also to be blamed for not reading investment proposals carefully, underestimating potential risks involved and how the Force Majeure clause can be exercised. I conclude in the words of Peter Lynch, "Never invest in any idea you can't illustrate with a crayon."
Brian Sikuku
The writer is an investment professional interested in financial markets, alternative investments and financial education. | bransikafrika@gmail.com
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Take some time and reflect on your latest food choices. That plate of food that you last ordered in the restaurant or the stock of food resting on the shelves of your home kitchen. Would you love to change mind about what you are eating? I think you should free yourself from malnutrition by making good food choices.
Food choices are good investment. They yield positive returns in the form of good health and progressive economic outcomes. On the flip side, poor food choices may contribute to incidences such as cardiovascular diseases, diabetes, growth retardation in early life and chronic neurological disorders such as Alzheimer’s disease. Diabetes, for example, with a burden of 347 million people worldwide having it has been linked to unhealthy diets that are high in Carbohydrates, fats and sugars; and low in vegetables and physical activity. The global economic burden of treating diabetes has been increasing exponentially from US$1.3 trillion in 2015 and it’s projected to rise to an estimated US$2.1 to US$2.5 trillion by 2030. Poor nutrition causes morbidity and mortality which attracts a financial burden. Bethany Frankel notes that your diet is a bank account and good food choices are good investments.
The increase in number of eateries selling fast foods and processed foods, known to be high in sugar and saturated fats which have a negative effect to the body has contributed to unhealthy choices. Poor maternal nutrition, which plays a key role in determining infant outcomes, has also scaled up malnutrition. While malnutrition is an unprecedented pandemic in Africa, few people seek nutrition intervention and there’s limited interest from the population to learn about it. We are duty bound to understand what we eat and what it does to our bodies. Taking a personal initiative to read about food, consult with a nutritionist and making radical changes to our recipes and menu should be our starting point. The same way we plan with our time and money, let us also plan our diet. I recommend the Mediterranean diet for starters in this journey of investing through good food choices.
Argwings Chagwira
The writer is a food, nutrition and dietetics expert. His provides professional guidance on health and nutrition. | achagwira@gmail.com
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He was everything that a 20th Century parent wanted in their child. The late Hillary Boniface Ng’weno became the first Kenyan to join Harvard University and the first Kenyan to hold a degree in nuclear physics. Contrary to the norms of his times, the Harvard graduate returned to Kenya and found passion in storytelling as a newspaper scribe. He rose in ranks at Daily Nation to become an editor and later founded his own publishing company, Stellescope. Mr. Ng’weno diversified his media empire through publication of the famous Weekly Review and other periodicals including Financial Review, Industrial Review and Rainbow. After 24 years of publishing, he wound up Stellescope in 1999 to launch Kenya’s first independent television news station, STV. He sold STV in 2,000 and reinvested himself as a historian through his award winning documentaries such as The Making of a Nation.
Mr. Hillary Ng’weno had myriad opportunities to live and work abroad but chose to invest his intellectual capital into Kenya and its people. He dared entrepreneurship in an industry he knew nothing about except a passion for writing and shaping opinions. When every media company that had set footprint in Kenya was a “too-big to compete multinational”, the young Mang’u High School alumnus made his moves brilliantly to become a coveted “made in Kenya” media owner. As an editor, he understood the value of coffee in conversations with writers and how a formal outfit world limit the depth of connection between a leader and his teammates.
The industrial journey of Hillary Boniface Ng’weno is one that took paths not travelled before. He made new mistakes and like a caterpillar, he evolved from his enterprise failures as many times as he could. Anytime he sold his business, he never asked how much a seller was willing to pay, but why they wanted to buy. He understood that he was the most important asset in his businesses except for being a mortal being. Hillary wielded power through his work and used it to pioneer journalism that constructs government and governance. Mr. Ng’weno lived to his aspirations. When he died in July 2021, his legacy challenged many journalists to think beyond the newsroom and scientists to reimagine art. His portrait remains an icon on Kenya’s wall of fame and his name a household brand in Africa’s journalism.
Rick Okinda
The writer is a Certified Accountant working with small business owners to deliver business plans that serve their management and financial needs. | rickokinda@gmail.com
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AREA OF FOCUS
- UNDERSTAND PRIVATE EQUITY.
- GOOD FOOD CHOICES ARE GOOD INVESTMENT
- THE MAN THAT MADE KENYAN JOURNALISM | Hillary Boniface Ng’weno
- REGULATE DIGITAL LENDERS TO CLEAN CHAOS
- FINANCIAL CONVERSATIONS FOR COUPLES
- THE TIPPING POINT
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The passing of Dr. Christopher Joseph. Kirubi in June, 2021 ceased a moment for all industrialists to reflect on the habits that made a corporate bigwig. I have taken some time to analyze the demeanor and person in the late Chris Kirubi with the particular objective of highlighting what made him different and successful in building a business empire of his size. Through testimonies shared by some of his family members, friends and employees in memory of their time with him, I have learnt that Chris was truly larger than life. He was a man of style, class and influence. Dr. Christopher Kirubi never compromised his standards especially in grooming, driving and dinning. The polo and golf enthusiast also loved to brag about his businesses. He did all these with one single objective, to attract value.
Chris invested in value creation and value attraction. These he did perfectly by risking his money while banking on his reputation. He knew the boardroom language and negotiated skillfully with other multinationals, governments and high-net-worth individuals who possessed the value that he wanted to attract. He also attracted people to work for him, by creating employment opportunities and by leading them appropriately. Dr. Christopher J. Kirubi invested in almost all sectors, travelled to leading cities, associated with men of caliber and pulled his own sit on the national dinner table where power is designed and negotiated. He groomed his two children, Robert and Maryanne, to take after him the control, management and ownership of his businesses, a strategy to make his empire last for more than a lifetime.
He had enough controversies, but from his success we can borrow a thing or two in creating stronger businesses. Foremost is negotiation. In business one must learn to negotiate, this is the power that gives you way to networks and value. Second is the law of attraction which works well when you coordinate your strengths to your favour. Finally, Appreciate. Dr. Kirubi wanted to be appreciated just as he appreciated others. This final law could have made him a contradiction in many ways; a capitalist who truly created jobs, donated generously and paid huge taxes. The legacy of Chris Kirubi shall live on.
Rick Okinda | IGBR Editor
rickokinda@gmail.com
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Why the Rich Are Getting Richer by Robert T. Kiyosaki. The book review was scripted by Effie Odhiambo.
- This book is definitely a graduate school book, the world is evolving, and yesterday is not like today. We are seeing major clashes in the economy, countries are printing money, globalization happening and technology is dynamic, there is a continuous growth of economy and wealth. Financial Education is currently more important but the question is, what kind of Financial Education? Everyone is talking about money, if it doesn't control the world maybe it runs it.
- "Money is a language, learning to be rich is much like learning a foreign language, and it takes time practice and dedication."
- What is financial education really? This books tells us what it is and what it is not, the two sides of the coin. All coins has 3 sides, the head, tail and the edge, Intelligence is found on the edge of the coin in the ability to see both sides.
- Therefore, how do rich people keep getting richer? That's the million dollar question, everyone want to know. People are aspiring financial freedom and the exit to attain this, is financial education. When we talk about financial education we have to talk about financial literacy which is the ability to read and understand the language of money and Financial IQ which is the ability to solve financial problems.
- To become richer one does not need to be a tax cheat, defaulter in loans or commit other financial crimes. When we have better financial education our risks goes down and our results increases. Some people believe tax is unfair and it's intended to punish people, others think debt is a liability yet what's really unfair is the lack of real financial education that would help people better understand how to manage their cash flows. If you have real financial education you can pay less in tax legally, tax is intended to reward people not to punish. Debt is also like a loaded gun, can save your life or kill you. It all depends on which side of the coin you are viewing from.
- In so much as getting the required financial education is important, the rich also learn from their mistakes ,mistakes makes them smarter not stupid. Experiential learning is the cone of learning and most effective way to retain what we learn. If a baby is punished each time it falls, it will never leave home.
- Robert Kiyosaki amazingly, simplifies what financial education should be in his book "Why rich get richer". It has detailed information on how to manage our cash flow, taxation, debt, how we can save and invest to become richer and also take advantage of the major world crashes.
- Henry Ford said: "If you think you can, you can, if you think you can't. Either way you are right."
- If you want to get richer you must know what you are doing, how can a person know what they are doing if they know so little or has no financial education? If you are not interested in your money someone else is.
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Authored by; David R. Caruso and Peter Salovey. The Review was scripted by Effie Odhiambo for the iGrand Business Review magazine November 2020 issue.
This book outlines a prescription for effective management and leadership, it is based on integral role of intelligent use of emotions and its impact on thinking, decision making, being motivated and behaving. Emotional intelligence refers to a person's capacity to effectively reason about emotions and to use emotions to enhance thoughts and solve problems. We are taught that emotions shouldn't be felt and should be expressed carefully and only in a certain environment and certain time, although an emotionally intelligent manager replaces the convectional view of emotions with an intelligent view, they combine passion with logic and emotions with intelligence.
The fundamental emotional skills of an emotionally intelligent manager are;
- Identifying emotions: we have to read people, by becoming aware of emotions and expressing them accurately in order to communicate effectively.
- Using emotions: emotions influence our thinking and we should match emotions to the tasks.
- Understanding emotions; emotions are not random events there are underlying causes, we should predict the emotion future and find out what emotions mean.
- Managing emotions: this requires us to stay open to emotions and integrate emotions into thinking.
Emotionally intelligent people are not necessarily great managers and not all great managers are emotionally intelligent, effective management is therefore essential. Emotions do matter at all times and to ignore it is to deny the wisdom of our emotions and those of others. Integration of rational and emotional style is key to making good decisions because emotions are always at work and they work with and for us.
Managers may build effective teams, plan and decide effectively, motivate people, communicate a vision, promote change and create effective interpersonal relationships as they affect and influence people.
The major principles of emotional intelligence include:
- Emotions is information: it contains data about you and the world, it is events that interfere with thinking and helps motive and guide success. We must be able to differentiate between the experience of an emotion and influence of being in a certain mood.
- We try to ignore emotions but it doesn't work: emotions will always influence performance in all areas of our lives.
- We can try to hide emotions but we are not as good at it as we think: your emotions will be read by some of the people, most of the time.
- Decisions must incorporate emotions to be effective: emotions has an impact on our decisions, on us and others whether we want them or not.
- Emotions follow a logical pattern: emotions are not random occurring events, each emotions has its own move.
- Emotions universal exist but so do specifics: customs and culture do vary but in case of emotions it can be universally recognized and there are emotional specific which have to do with display rules, secondary emotions and gender.
Emotional blueprint offers an approach to emotions that is intelligent, it does not threaten the importance of logic or reason, an emotionally intelligent manager has to describe the situation, identify the emotion, use the emotions, predict emotional future, understand the emotions and manage the emotions so as to motivate and inspire them. Emotional skills can be measured in an objective way through the use of performance or knowledge test.
"Emotion system is an intelligent system, that's why it evolved in animals including human, our emotions points us in the right direction and motivate us to do what needs to be done."
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This Podcast was scripted by Rick Okinda. It tells where business activity is picking up in Kenya and why the creation of more major towns is key for intra-country trade. The script was published as a column in the iGrand Business Review August 2020 issue.
Nairobi has for a long time been Kenya’s epic city due to its role as the administrative capital of the country and indeed the East African region. It has attracted a large population of Kenyans for hosting administrative offices, academic institutions, industries and for being a key transport hub. This has made the town grow to an economic hub accounting for at least 21.7% of the country’s GDP.
In the dispensation of a new constitution that was promulgated in August 2010, new cities are expected to rise in the spirit of devolution. Each county headquarter town is expected to be regarded as a city. Therefore, county governments are supposed to take a front-row seat in actualizing the creation of 47 cities countrywide.
This means that fiscal decentralization must be a major focus on devolution. Resources in each county need to be optimally utilized to promote even economic growth and to
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This podcast was scripted by Rick Okinda and published as a column in the iGrand Business Review magazine November 2020 issue.
The ongoing industrial revolution swings on the hinges of tech-powered innovation. The rise of big tech companies in California’s Silicon Valley has greatly impacted how business is done and will be done going forward. Google, Microsoft, Facebook, Cisco, Adobe, Oracle, Intel, Apple and Hewlett Packard are some of the companies whose contribution in the fast-growing digital economy is largely significant. These companies, among other non-silicon valley big tech players have set up regional headquarters in Kenya purposely to fill the market gap.
In his state of the nation address, delivered on the 12th of November, President Uhuru Kenyatta reported that an average of 300 companies are registered in Kenya every day. Looking at these figures in the light of job losses during the covid-19 pandemic, it is clear that many employees are now considering to venture into ‘side-hustles’ and those who have lost their jobs to the pandemic are starting their new companies. If we try to connect the dots, we will realize that the cost of starting a company and running one has reduced thanks to the digital migration to e-commerce.
Inasmuch as millions of websites and social media accounts for business have already been established, it is critical for the investor to learn that the digital economy is still largely unexplored. There are market gaps all over from production, to storage, distribution and selling in every industry. There is also a large space for intellectual enterprise for consultants who wish to meet their customers on their handsets and personal computers.
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This podcast asks the question, where should one invest in a crumbled economy? It was scripted by Rick Okinda and first published in the iGrand Business Review Magazine in July 2020.
While economic depression is real, many businesses have shut down and industries are recording losses. The growth rate of economies the world over is decelerating and those with savings are hoarding money from investment. This review identifies with the common cliché that says, “Industries close for new ones to rise.” Safaricom began by selling air talk time then it diversified to short message service and later to M-PESA and internet data bundles. This has kept the company up float for over a decade now. Today Safaricom is positioning itself as an internet data seller and as a gateway payment platform provider because the world has changed. This is just but an example, not mentioning the new market opportunities in healthcare service delivery, media content creation, online learning, online working, online shopping, flood control, railway construction, property management and waste management. Our review points the investor to industries that will not collapse any time soon. These industries include food production, taxi services, healthcare and construction. We conducted a recovery journey survey of companies from effects of COVID-19 pandemic and noted the following.
- Re-opening of companies will happen in phases.
- The first step for most companies will be to change the business model, which requires new considerations into already existing business plans and drafting of fresh business plans.
- Re-calling of employees is not definite and there is a likelihood that many laid-off workers will seek new jobs elsewhere.
- Workers who will be fortunate enough to be called back to work are likely to be given new job descriptions that fit in the framework of post COVID-19 business plans.
- Just like traditionally a company could not survive without a messenger, new business models demand that a company must higher or subcontract a social-media manager, digital marketer, IT experts and establish a call center to manage customer relationships.
- It will be very important for companies to create Lipa Na M-PESA accounts as their payment platforms as many payments will be done online.
- This review indicates that a time is coming when the definition for factors of production (FOPs) will change to include internet as the fifth factor thanks to COVID-19 for catapulting the digital migration.
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This Report was forwarded by Dr. Mukhisa Kituyi, Secretary General of UNCTAD and Reviewed by Rick Okinda for the October 2020 issue of iGrand Business Review magazine.
Flows of foreign direct investments (FDIs) are falling sharply under severe pressure as a result of COVID-19 pandemic. Export-Oriented and commodity-linked investments are among the most seriously affected. The global financial crisis of 2020 has catalyzed a process of structural transformation of international production and an industrial revolution to scale sustainability.
On the downside, there are likely chances that post – COVID there shall be a record growth in economic nationalism. The remedy against growing economic nationalism is development of a healthy policy environment for global trade.
The overall directional trend in international production points towards shorter value chains, higher concentration of value added and declining investment in physical productive assets. Export-oriented investment geared towards exploiting factors of production, resources and low-cost labour will remain important.
The 2020 report also details that a new set of global actions to facilitate a “big push” in private sector investment in Sustainable Development Goals (SDGs) is highly needed. Progress on investing in the SDGs is not just about mobilizing funds and channeling them to priority sectors in developing countries, especially the LDCs. It is also about integrating good environmental, social and governance (ESG) practices in business operations to ensure positive investment impact. Stock exchanges provide a platform for sustainable finance and guidance for corporate governance. Companies and institutional investors acknowledge the need to align investment and business decisions with positive SDG outcomes. The SDGs are increasingly becoming a focus of investor interest and company reporting for impact, including with respect to gender equality. A key challenge is the quality of disclosure and harmonization of reporting standards.
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Hosted by Vasili Africa and Presented by: Daniel Mainye - Brand manager Cytton Investment. The review was scripted by Effie Odhiambo for the November issue of iGrand Business Review magazine.
How can we borrow wisely? Can debt create more wealth? Is debt good or bad? How can we really manage financial distress? Some of the webinar insights include:
Debt can be good or bad. A good debt is a debt taken for investment and should grow in value in long-term, the income earned should be able to repay the loan. A bad debt is loan taken for consumption purposes, they quickly lose their value and do not generate a long term income.
Causes of bad debt may result from; wrong financial planning, over-ambition in financial matters, irregular income, multiple borrowing, unstable lifestyle and lack of financial literacy.
Recommended remedial actions that can be taken to manage bad debt include; saving, investing, purchase in cash, postponed gratification, debt consolidation, counselling and restructuring.
When acquiring debt one should assess their loan repayment ability, sustainability of the repayment plan, the tenure of the loan and available alternatives to fund raise.
Proper investment decisions should be taken into account by considering the risk, expected returns, liquidity of the investment, time horizon, objective of the investment, investment goals and different investment choices available.
The words of Robert Kiyosaki will best summarize the webinar, “It is not how much money you make but how much money you keep and how hard it works for you and how many generations you keep it for."
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The Webinar was hosted by KCB Biashara Club on the 6th of July 2020 and reviewed by Rick Okinda for the October 2020 issue of iGrand Business Review magazine.
The journey to financial management starts with determining current financial situation. This will give you a platform to develop your financial goals, identify alternative courses of action, evaluate alternatives; consider life situation, personal values and economic factors, assess risks and time value of money (opportunity cost). Once this is done, you will be in the right position to create and implement your financial action plan. To attain precision, it is recommended that you review and revise the financial plan to attain an equilibrium.
In financial management, creativity when making decisions is vital for effective choices. The common courses of action from which to draw alternatives are: continuing the same course of action, expanding the current situation, changing the current situation or taking a new course of action.
These recommendations are suitable for both personal finance and management of finances for SMEs
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This Making Cent Conversation by Centonomy that was reviewed by Effie Odhiambo for iGrand Business Magazine September issue.
- Drawing lessons from the Biblical parable of talents, we are all endowed with abilities in different capacities. It is therefore upon us to put to use what we have to earn profits. Centonomy’s webinar hosted by Douglas and Waceke brings us to light about the wealth creation journey. The two in the September 10th webinar advise that we should look at our resources in a holistic way to be able to diversify our revenue streams.
- In the real world today, especially in the wake of a pandemic that has resulted into massive job losses, it is time to realize that diversification of income streams is a key principle in wealth creation. But to diversify streams of income, we must also work on our character. It is a resilient character that makes one willing to endure humble beginnings and cultivate patience when making an investment.
- Currently, companies are looking for a workforce that can multitask. This is to say, if you can do many things you become a collateral in an organization. Stop defining yourself with your qualifications and redefine yourself with what you can do. Majority of people seldom create time for a side hustle yet in most cases a lot of their busy time is spent unproductively.
- “You have 48 hours a day, you can use other people's time on top of yours"
- What do you really want? That’s always an easy question but until you verbalize it and write it then would you be able to see unlimited opportunities. People should change what they see or information they take in, if you complain about the economy, government and engage in unproductive social media content you can never see results. We often follow rules and routines but not results. Time and chance happens to all. If you can't manage time there is nothing you can manage.
- The big question to single income earners is this; how much of what you work so hard for is actually yours? Is that income sustainable? We all have to look back at our finances, budget and track our expenses then we can close the loopholes and channel the money to investments.
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Authored by Mark McCormack and Reviewed by Effie Odhiambo for the October issue of iGrand Business Review magazine.
This book basically talks about the resourceful skills needed to succeed in a business and ultimately grow. It is a "street smart" book that emphasizes on the human aspect of running a business. "Business schools are not meant to teach you everything about succeeding in the real world, personal interactions and self-disciplines are more important than theories, raw data and Excel sheets" Mark McCormack emphasizes on the importance of reading people, creating impressions, taking the edge, getting ahead, making sales, negotiating, problem solving and general business growth.
McCormack believes that everything in a business revolves around people. You are either selling, managing or working with people. Therefore, giving insight into people by observing how they carry themselves will tell you more about the person. When watching people it's important to listen and observe aggressively, talk less and listen more, take a second to look on someone's first impression, take time to use what you've learnt, be discrete and detached. Always be aware of your strengths and weaknesses and how these are likely to slant your reaction to others, nothing blocks insight into other people more than your own ego.
The Best salesmen possess a sixth sense. They can tell by the tone of someone's voice, atmosphere and mood. They understand that rejection can be the greatest motivation overtime. Salespersons should not be discouraged by failure. In sales, rejections are never personal, you have to understand that timing is critical. Timing is everything in business that even a good idea could fail at bad timing. Know when to follow up and look at the right moment. Perfective selling is tied to timing, patience, persistence and adapting to your clients. It is critical to know when to talk and when to keep silent. Market your product with enthusiasm and understand when someone won't buy from you. Learn to take initiative and do not be greedy, pushy or impatient but keep looking for the edge. If you don't know find someone who knows and learn. Admit you need help by simply asking and expanding your knowledge. Acknowledge that sometimes you could be wrong.
Mark McCormack extends the argument to the quality of entrepreneur’s life. Big performance in business require nurturing of passion .It is very important to understand what you are good at and grow at your own pace. Schedule out your entire day, this helps in time management and trusting your system. In building a business always do what you're passionate in, start small, have realistic goals, grow slowly, diversify expertise and keep learning. If you focus on excellence and efficiency you are assured to make your way to success much clear.
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Scripted by Rick Okinda, first published in the iGrand Business Review on August 27th 2020. This podcast tells the entrepreneur in the SME category why his/her contribution is key in the business ecosystem.
The traditional approaches that established corporations pursued to build a big clientele included opening of branches in different regions, hiring regional agents and sales representatives, forming an internal distribution department and visiting particular places on market days to sell directly to customers. This has been the organized structure of many corporations in the past decades.
With the onset of e-commerce, these structures are collapsing. Instead, distribution channels are becoming relational by-day. For instance, about eight out of ten people are more likely to purchase shoes from a friend who sells them through social media platforms than from an established shoe vendor. The same applies to every other product and services including purchase of used cars, insurance products, land, renting an apartment and choosing a holiday destination.
In this review, we highlight that Companies will stop opening branches and invest more in building wider relationship networks by marrying smaller companies into their business model. One of the reasons why M-Pesa is a successful product is because Safaricom chose to get closer to its customers by working with M-Pesa agents who are small retailers running retail businesses in the estates, villages and small towns that we live and work in. Coca-Cola employed this approach by installing refrigerators all over the world.
The onset of agency banking and huduma centers across the country are indicators that even banks and governments are re-thinking customer relationship management. In the reviewer’s opinion, small businesses have the relationship advantage given that most of them are family owned businesses with closer ties to people within the circles of family and friends. This is an advantage that Large Corporations lack. Therefore, most corporations will align themselves in the production line while small companies will compete to control distribution lines.
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This Podcast outlines Why Kenya’s wealth relies on a dense railway network. It was scripted by Rick Okinda and published in the iGrand Business Review magazine on July 27th 2020.
The largest cities in Kenya today have a thing in common, all the three have been important railway terminals for a long time. Nairobi became Kenya’s capital city in early 1900’s when the swampy town became connected to Mombasa port through a railway line. Kisumu on the other hand has expanded in size since 1901 when the railway line was connected to the lake port. The difference in size between Kisumu and Port Victoria is largely attributable to the fact that Kisumu is a key railway terminal for goods arriving from Mombasa for Shipment to Jinja and Port Bell in Uganda. Port Victoria, which had been initially considered by British Colonialists to host the Lake Port connecting Mombasa to Uganda has remained a small town incomparable to Kisumu for the obvious reason.
President Kenyatta has invested billions of Kenya Shillings to the construction of the Mombasa – Suswa Standard Gauge Railway with a further rehabilitation of the Thika – Nanyuki Meter Gauge Railway. This efforts will see opening up of trade in the country. Naivasha and Nanyuki are some of the Key terminals which are expected to grow into cities by Kenya’s centenary. Malaba border in Western Kenya is also expected to grow into a large town should the initial plan to extend the SGR to Uganda be implemented.
Construction of a good road network is also very key in urbanizing the country’s trade centers, this is why Kenol, Mau Summit and Makutano Junctions are upcoming towns.
In his book, The Wealth of Nations, Adam Smith states that the wealth of any nation is not so much dependent on the amount of money circulating as it is dependent on the amount of goods and services changing hands. For goods and services to change hands, the economy of a country should be opened up through road, railway, and air and sea infrastructure. Movement of passengers and commodities expands markets for trade and wealth creation. Therefore as the country endeavors to eradicate poverty through industrialization by 2030, more roads are supposed to be upgraded to bitumen standards, more towns must be connected to the railway line, more air and sea ports should be constructed and internet speed needs to be further upgraded. This will create an enabling environment for new businesses to start and create millions of jobs for Kenya.
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Rick Okinda scripted a review of the Book of Ecclesiastes highlighting Biblical insights on investment.
- Cast your bread upon the waters, for you will find it after many days. This verse reminds us of the concept of time that is needed for any investment to mature.
- Give a portion to seven or even to eight for you know not what disaster may happen on earth. The preacher brings the concept of risk and diversification of investment as its remedy.
- He who observes the wind will not sow, and he who regards the clouds will not reap. Solomon addressed the concept of profit implying that profit can only be realized where investment was made. This is to tell the investor to invest anyway as risks will always be there. The investor is required to be a trained observer who interprets the wind and clouds rather than complain about them.
- In the morning sow your seed, and at evening withhold not your hand, for you do not know which will prosper, this or that or whether both alike will be good. The author emphasized on the need to be consistent in all seasons. He introduces uncertainty as a characteristic in every type of investment.
The book of Ecclesiastes is one of the shortest and oldest books that have been written to investors. It is in the reviewer’s opinion the most read investment book of all times. It ends by pointing the investor to God as the assurance to better things than investment profit.
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