The 25th Anniversary Special Awards nomination edition
Top 25 setting business agenda in 2020 #1 www.isuzu.co.ke
JAN-FEB 2020, Vol. 15 No 149 East Africa Edition
Awards celebrating 25 years of excellence in publishing Looking back, the fast-paced world of publishing that Dr. Gaya works in has not robbed him of time and perspective to reflect on his 25-year journey in publishing, which he says has been fruitful due to the support of loyal readers and subscribers, including some of the top names in medicine and law 6
NOMINEES 10 Jeremy Awori, Managing Director, Chief Executive officer and Executive Director - Barclays Bank Kenya NEWS FEATURE: Understanding the economic 12 Carole Kariuki, Chief Executive cost of corruption in Kenya Officer - KEPSA This poor showing shouldn’t come as a surprise. Kenya has been plagued by a long list of corruption 14 Margaret Ireri, Chief Executive scandals. One of the more infamous was the Goldenberg heist Officer - TIFA Research Limited which occurred in the 1990s during then President Daniel Moi’s tenure 18 Rita Kavashe Nairangai, MBS Managing Director - 74 Isuzu East Africa 20 Peter Ndegwa Incoming Chief Executive Officer, Safaricom Plc 22 Phyllis Wakiaga, Chief Executive - Kenya Association of Manufacturers (KAM) 24 Wachira Waruru, Group Managing 42 Esther Ngomeli, co-founder and Director of Royal Media director of Redhouse Group 26 Geoffrey Otieno Odundo, Chief 44 Andrew Mutuma, Managing Executive of the Nairobi Securities Director DHL Express Kenya Exchange PLC (NSE) 30 Joshua Oigara, Chief Executive Officer KCB Bank 32 Dr. James Mworia, Chief Executive Officer of Centum Investments 34 Lenny Nganga, Chief Executive Officer- Saracen Media Group NEWS FEATURE: 36 Serah Katusia, Managing Director, Nairobi’s slum residents pay a Mediacom and MEC East Africa high price for low quality services About 56% of Kenya’s urban population currently lives in 38 Rebecca Mbithi, Chief Executive slums. Nairobi even hosts one of the largest slums in Africa, Officer, MD- Family Bank Kibera. 76
2 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations INCHCAPE CERTIFIED
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48 Dr. Benson Wairegi, Group 74 Understanding the economic Managing Director, BRITAM cost of corruption in Kenya 52 Adil Popat, Executive Chairman, Simba Corporation 76 Nairobi’s slum residents pay a high price for low quality services 54 Amb. Dennis Awori, Chairman And Country Delegate SECTOR REVIEW of CFAO Kenya Ltd 80 Is it good for you to be good?
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*Ts and Cs apply. 4 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations Awards celebrating 25 years of excellence in magazine publishing
BY LENNOX YIEKE PUBLISHER: Dr. Hanningtone Gaya r. Hanningtone Gaya [email protected] remembers July 1, 1995 0722 742287 like yesterday. It is the date EDITOR: he launched his first maga- Martin O’Neil Dzine, the monthly MOTOR. CONTRIBUTORS: Cathy Mputhia The rest, as they say, is history. Mike Eldon Since then, Media Seven Group has Scott Bellows been publishing leading life style Lennox Yieke and specialized magazines, includ- Anzetse Were ing the monthly MOTOR, Business Jeff Aludo Monthly and Mum and Dad. PUBLISHED BY: According to Dr. Gaya, “When are reading libraries of Motor and The Knowledge Warehouse 020 26504 937 you are in magazine publishing, Business Monthly magazines, many 0722 742 287 every new issue must have fresh, of them being subscriptions dating DESIGN & LAYOUT: interesting and engaging content. all the way back to the mid-90s. Fontana Creations That means investing in quality, Dr. Gaya is most grateful for the MIS & ADMINISTRATION: informative, educative, entertaining, support enjoyed by thousands of Marilene Mercy topical, bold and relevant content readers, most of who are looking for 0722 420 493 every month.’ premium content in a market where BUSINESS DEVELOPMENT ‘’In this kind of work environ- magazines come to market but MANAGER: ment, time moves very fast. You hard- quickly disappear, due to inadequate Martin O’Neil ly notice that you have been in the advertising support from industry 0721 989 263 business for more than two decades,” and commerce. ADVERTISING: Dr. Hanningtone Gaya says the publisher, who this year, is In particular, Business Monthly, [email protected] celebrating 25 Years Silver Jubilee the flagship titles in the Media Seven 0722 742287 in Magazine Publishing, with seven stable, has cut out a niche for itself DISTRIBUTED BY: leading magazine titles under his as the go-to source for premium Nation Marketing & Publishing belt. business content. “We don’t tell you A Division of Nation Media Group Looking back, the fast-paced what happened in the world of busi- P.O. Box 49010-00100 Nairobi world of publishing that Dr. Gaya ness. Twitter can do that for you Tel: 020 3288588 / 8574 works in has not robbed him of nowadays. CONTENT: Produced under common licence time and perspective to reflect on Rather, we tell you why it hap- from The Conversation his 25-year journey in publishing, pened and what is likely to happen which he says has been fruitful due next from an industry or policy BusinessMonthly to the support of loyal readers and standpoint, bringing in experts from http://media7kenya.com subscribers, including some of the industry and academia to offer dif- top names in medicine and law. The ferent perspectives,” says Dr. Gaya. coffee tables of leading doctors and This rich and informed debate lawyers’ suites have been adorned on topical issues in the world of by the glossy covers of Media Seven business and economics makes our Magazines. From Nairobi Hospital to readers better managers, better deci- The Aga Khan University Hospital sion makers and better business peo- Doctors Plazas, these waiting rooms ple, since our core readership is
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largely drawn from the world gets this in media. People avoid ads. of management, business leadership Even on YouTube, most viewers skip The Top 25 are people and public service, including aca- ads,” notes the publisher. whose stars are shining demia, adds Dr. Gaya. To mark Media Seven Group’s “I realized that although mag- 25 Years of Excellence in magazine and continue to shine azine publishing was a passion, I publishing, Business Monthly, in on the industries and needed a professional approach to partnership with leading research commerce where their consolidate the progress I had made and PR firms, have been putting since the 90s. That is why I enrolled together a list of 25 top women and contributions leave for further studies in business,” men to be feted, each top leader rep- colossus footprints says Dr. Gaya, who holds a PhD in resenting each year of excellence in Commerce in Business Management magazine publishing. from Nelson Mandela University. Each of the top 25 has contrib- and gentlemen who continue to raise Throughout the years, Dr. Gaya uted in more than three criteria of the bar in the standards they set in has built a solid network of edito- qualification, including walking the their firms, industries and business rial and advertising partners who talk in business ethics including cor- associations they lead. have helped him defy the odds in porate governance and social respon- Business Monthly is glad to cel- an industry famed for its unforgiv- sibility, entrepreneurship, wealth and ebrate Media Seven Group’s Silver ing terrain, a dearth in magazine employment creation, industry lead- Jubilee by honoring them in this advertising being the daily menu ership, policy development, people 25th anniversary and inaugural that is served. Because of this, “We management and mentorship, small awards,” concludes Dr. Gaya. are grateful to our advertising part- holder and MSME financial inclu- In the same vein, Business ners because they understand the sion. Monthly recognizes efforts of recent power of spot-on niche marketing The Top 25 are people whose regular contributors and columnists that our magazines have afforded stars are shining and continue to who have contributed topical, inter- them. We are a great platform for shine on the industries and com- esting and deeply researched articles: premium marketing and the leading merce where their contributions Mike Eldon, Phyllis Wakiaga, Prof. brands we have helped position are leave colossus footprints as they Scott Bellows, Jeff Aludo, Anzetse testaments to the power of magazine delve their mark on a daily basis. Were, Cathy Mputhia, William editorials and advertising. One rarely The Top 25 are inspirational ladies Maema and I, Lennox Yieke.
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In banking industry leadership, Jeremy has been the chairman of Kenya Bankers Association between June 2013 and July 2014, the industry banking body responsible for managing the banking agenda #1 and liaising with key stakeholders including the Dr Jeremy Awori government and key consumer CITATION: Jeremy Awori has been the Managing Director, Chief Executive institutions Life Time Award: Transition officer and Executive Director at Barclays Bank Kenya since Leadership from Barclays Kenya to February 2013 Absa Bank Kenya PLC.
Industry Leadership- KEPSA e is the accountable exec- dexterity and intellectual precision the history of SCB. and KBA. utive for Barclays Bank intricate banking concerns; including In banking industry leadership, Kenya Subsidiaries which conducting high-level advocacy on Jeremy has been the chairman of Brand Equity- Maintaining include the Barclays cross-cutting laws and policy-related Kenya Bankers Association between Barclays Kenya as the premier bank for seven years. FinancialH Services, Barclays issues that help place Kenya a glob- June 2013 and July 2014, the Bank Insurance Agency, Barclays ally competitive financial destination industry banking body responsible Change Management- Microfinance, and Barclays Prior to this, Jeremy was the for managing the banking agenda Corporate Governance- Board Nominees. Chief Executive Officer of Standard and liaising with key stakeholders Composition and Diversity Jeremy has been central in the Chartered Bank (SCB) in Tanzania including the government and key bank’s adoption of internet banking. from December 2008 to January consumer institutions. He led the bank in the launching of 2013, having risen from December While at SCB, Jeremy won sev- leads Barclays Bank Kenya tran- the most advanced mobile lending 2008 to January 2013, from the eral accolades among them, The sition to Absa Bank Kenya PLC, app in Kenya dubbed ‘Timiza’. The position of Regional Sales Director, Banker Magazine – Bank of the Year after a presence of over 100 years app is allowing Kenyan consumers Middle East, South Asia and Africa in Tanzania 2010 and 2011, Euro as the premier bank in the coun- to apply and get instant loans based for Standard Chartered Bank, a posi- money – Best Bank in Tanzania try. Going by the 2018 Integrated on the strength of the M-Pesa trans- tion he held from 2006 to December 2011, EMEA Finance – Best for- Report, Jeremy is on course, having actions, and irrespective of whether 2008. eign bank in Tanzania 2012. led the bank in registering its fastest they are Barclays Bank customers or Jeremy has also been the Head Jeremy holds a BSc Degree growth in a decade at 12% year-on- not. Over the time he has been at the of Consumer Banking in United Arab in Pharmacy from the year, with a strong revenue growth helm of Barclays, the bank has been Emirates (U.A.E) and for East Africa University of Manchester buttressed by well-contained cost steadily growing in profitability. between the years 1999-2003 for in the UK and an MBA base, increased operating profit by In advocacy, Jeremy sits as a Standard Chartered Bank (SBC). degree in Finance and 8% year-on-year, the highest since Director of Kenya Private Sector During the same period, Jeremy was International Business 2010. Alliance (KEPSA), an umbrella Board Director of SCB Kenya, then from McGill University Such a success during a brand- business lobby group on economic the largest listed company in the in Canada. ing and shareholder transition peri- empowerment, from May 2013 to Nairobi Stock Exchange, where he In 2020, all eyes od is no mean a feat, the basis for date, where he has articulated with was the youngest Board Director in are on Jeremy as he this award and recognition.
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s CEO of the Kenya Private lic-private dialogue and influencing Sector Alliance (KEPSA), the economic and development agen- she is credited with trans- da of the country and Africa. forming the organisation Carole also serves on several Afrom a little-known business lobby boards, including: Chairperson, group to one of the most influential Special Economic Zones Authority, #2 institutions in Kenya and globally. Kenya, Board Member, East African Everyday, from diplomats to busi- Cables PLC, Board Member, ness leaders, global and local, all Internet Solutions Kenya, Board line up on the corridors of Shelter Member, Harvard University Carole Kariuki Afrique House on Mamlaka Road, Center for African Studies, Africa all eager to pay a courtesy call on Advisory Board, Board of Trustees probably the most influential, if not Member, United States International equally powerful woman in Kenya University–Africa (USIU-Africa), today. Kenya, Board Member, Business In 2012 she Meet the diminutive Carole Advocacy Fund, Danish Embassy was voted Kariuki, who holds a Bachelor of Arts Kenya; Ambassador, African ‘Extraordinary Degree in Economics and Sociology Women in Business Initiative of the Personality from the University of Nairobi Africa CEO Forum, Paris, Council to Inspire the and a Master’s Degree in Public Member, The National Council of Future’ by 80% Administration and International Administrative Justice (NCAJ), of the 20,000 Affairs from Bowling Green State Kenya, Advisor, Nailab 3.0 (Nairobi students of the University, Ohio, USA. Additionally, Innovation Lab) Board, Kenya. Caroline boasts of several profession- In 2012 she was voted Entrepreneurship al courses on Public-Private Sector ‘Extraordinary Personality to Inspire Clubs of Kenyan Dialogue, Global Leadership and the Future’ by 80% of the 20,000 Universities. Private Sector Development under CITATION: students of the Entrepreneurship her belt. Clubs of Kenyan Universities. Carole has a wealth of experi- Private-public dialogue In November 2019, Carole was champion ence in leadership, having worked appointed to the board of Global Carole has a wealth of experience in leadership, having worked for, among others, Barclays Bank of Sustainable business Compact Network Kenya (GCNK). for, among others, Barclays Bank of Kenya and the Sagamore Kenya and the Sagamore Institute for leadership The GCNK is designed as a Institute for Public Policy Research, Indianapolis – Indiana, Public Policy Research, Indianapolis multi-stakeholder body, whose board where she acted as a liaison between KEPSA and the institute – Indiana, where she acted as a liai- Economic environment provides ongoing strategic and pol- leadership before formally joining KEPSA son between KEPSA and the insti- icy advice for the initiative, which tute before formally joining KEPSA. acts as the flagship for responsible Business Policy Formulation She worked for several years before business action. being appointed CEO. Gender Empowerment Board members are considered KEPSA is the Apex body of champions who are willing and able business groups in Kenya, galvanis- MSMEs champion to advance the mission of the United ing the private sector through pub- Nations Global Compact.
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argaret (Maggie) Ireri is an award-winning ACCOLADES #3 market researcher pro- fessional, recognized for PAMRO conference – presented Margaret Ireri Mher contribution to the development of research methodologies for Africa, a paper on use of passive by respected regional research technologies for audience In a record six months of her stay, bodies such as Pan Africa Media research methodologies and won a new position opened up for the Research Organization (PAMRO) an award for best paper Chairperson of the Marketing research manager at the Uganda and Southern African Marketing Society of Kenya (2015/2018) office. She applied for the job Research Association (SAMRA). She is the Founder and CEO of Board Member of the Marketing and was initially sent there on a Society of Kenya (2013-2015) temporary contract to hold brief TIFA Research, a Kenyan research agency that leverages on technology Consecutive appearance on the as the company recruited a more to meet clients’ needs faster and highly acclaimed list of “Top40 experienced manager. efficiently. under 40 women” Maggie, as she is affectionate- ly known to her close friends, has Published and presented a Education: over 15 years multi-sectoral research paper on “The challenges of Bachelor of Education Degree experience and works closely with conducting research in Africa” from Kenyatta University client to transform the research data South African Market Research MBA from University Jomo to insights and then into action. Association (SAMRA) Convention Kenyatta University of Agriculture Research and insights are in her and was awarded the Eddie and Technology (JKUAT) DNA - she has traversed across Shultze award for contributing Currently pursuing a Doctorate in the continent interviewing, observ- to the development of research Business Administration Degree ing and understanding consum- methodologies in Africa at Edinburgh University, UK. ers, trips that have benefitted from her multi- sectorial experience in media, education, health, telecom- business divisions in various coun- sidered to have a dead-end in the job munications, manufacturing, and tries including Nigeria, Zambia and market then and as result was look- banking sectors in Kenya, Uganda, Rwanda. ing for a career break. Within three Tanzania, Rwanda, Ghana, Zambia, Maggie’s career journey started months, she realized that she needed Mozambique, Somalia and Nigeria. in market research in 1998, when to do something radical to propel her Maggie’s experience in inter- she joined a leading market research career forward. national business management has company as a trainee in their Kenya In a record six months of her involved with time and include set- branch office. She had just grad- stay, a new position opened up for the ting up full country offices and new uated with a degree that was con- research manager at the Uganda
14 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 15 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations THE ICONIC AWARD-WINNING BRITAM TOWER Work is easier when you have the best view in Africa.
The Tower has won international The 31 storey tower is located in the heart awards: of East Africa’s financial capital, Upper Hill, and also encapsulates the spirit of Africa Emporis Skyscraper Award: renaissance. The only skyscraper in Africa to win and feature among the Features In 2015, she top ten buildings in the world. • 11-storey parking silo for 1,000 cars set up TIFA Council of Tall Building and • State-of-the-art security system Research, her Urban Habitat Award: • High speed lifts C Recognized for Mechanical, own, with all • Advanced telecommunications M Electrical and Plumbing infrastructure the skills she Engineering. had acquired Y • Six story atrium with sky glass CM IFC Excellence in Design for Zen Gardens over the years Greater Efficiencies Award: and from MY Recognized for strategies put in place to save energy those many office. She applied for the job CITATION In 2011, she took up the role CY and was initially sent there on a of Managing Director of the Kenya and water use. countries. CMY temporary contract to hold brief as Market research leadership offices, which was one of the most In the last K the company recruited a more expe- extensive operations in Sub-Saharan four and rienced manager. Keen to get the Corporate culture Africa with a staff size of over 250. To Let Contact Britam Properties Limited transformation half years, best out of this temporary posting, This role exposed Maggie to 0703 094 889 / 0703 094 999 Maggie has she burned the midnight oil – work- Change management more complex operations, interna- built the TIFA ing long hours (from 5 am to 9 pm tional clientele, corporate affairs and [email protected] corporate daily). Within two months, she had Institutional rebranding media relations. Some of her achieve- [email protected] brand and achieved much more than the man- ments during her four-year tenure agement had expected. The company Marketing Society of Kenya included; business revenue growth an enviable Leadership. client base. held off the recruitment process, (of over 15% per annum), launch with Maggie being confirmed to the of innovative products, organization role in recognition of her hard work. culture transformation to a more The business revenue under her Pan-Africa. Her primary role was corporate entrepreneurial ethos and watch grew by over 100% in the first overseeing several country offices also corporate brand building. year, and over 30% for the subse- in Africa, working with the respec- In 2015, she set up TIFA quent three years. Three years later, tive country managers to ensure Research, her own, with all the skills she was appointed Country Manager sustainable revenue streams. she had acquired over the years and of the Uganda business at the young In this role, she set up coun- from those many countries. In the age of 29. try offices and additional business last four and half years, Maggie has Having worked in Uganda for divisions. The company was even- built the TIFA corporate brand and five years, outgrowing the role and tually acquired by a global com- an enviable client base. the Ugandan job market, Maggie pany, with Maggie as the lead inte- Informally, Maggie acts as an took up a new position as the gration manager, a process that adviser to a number of Cabinet Business Development Director for she completed within 12months. Secretaries (CSs) in Kenya.
KENYA l UGANDA l TANZAN IA | RWANDA Head Office: Britam Centre, Mara/Ragati Junction, Upper Hill SOUTH SUDAN l MOZAMB IQUE | MALAWI Tel: (254-20) 2833000, (254-703) 094000 | Email: [email protected] www.britam.com BritamEA BritamEA 16 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 17 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations
he received her bachelor’s degree in Education from Moi University in 1991 and a Master’s Degree in Business SAdministration (MBA)in Strategic Management from the University of Nairobi in 2005. Rita has also par- ticipated in General Motors spon- sored leadership programs includ- ing the Harvard Business School Leadership Program. Her career in GM began in 1995 in its East African operations where she has worked for the last 24 years. Prior to her current position, Rita held several key roles in Sales and Marketing organizations both in #4 Kenya and South Africa. In 2010 when she became the Managing Director, Rita put in place Rita Kavashe solid strategies that improved the company’s competitiveness and gained customers in a rapidly grow- Isuzu EA has Nairangai, MBS ing automotive industry. This result- remained ed in the company’s market share dominant in Described in an article by Business Daily in rising steadily from 24.3% (in 2011) the Kenyan 2014 as a bubbly spirit, light-hearted to 39.1% in 2018. In 2017, Rita led the company auto industry and full of laughter, Rita Kavashe maintaining is the Managing Director of through a successful transition from GM East Africa to Isuzu East Africa. its top Isuzu East Africa (formerly The process was conducted smooth- position 7 General Motors East Africa ly with key stakeholders appraised years in a row (GMEA). regularly on the change of share- holding, company name and overall business continuity. Isuzu EA has remained domi- Sector Alliance (KEPSA). business for the wellbeing of people nant in the Kenyan auto industry Rita has a record in Public and the planet. maintaining its top position 7 years Service as the current Chairperson On 12th December 2017, Rita in a row. The company continues of the Kenya Roads Board and a was awarded the Moran of the Order to provide thought leadership in Member of the Kenya Vision 2030 of the Burning Spear (MBS) by the industry by advocating for pro- Delivery Board. In March 2017, President Uhuru Kenyatta for exem- gressive government and supportive she was appointed to the board of plary service to the country in her policy for the growth of local motor Bamburi Cement, a listed firm on the capacity as a business leader. assembly in order to expand the Nairobi Securities Exchange. Rita has for a long time had a country’s manufacturing base. In October 2017, Rita was invit- passion for mentoring young girls Rita holds directorships with ed to join a select group of inspira- and women from diverse back- various business associations such tional and influential African CEOs grounds. as the Kenya Vehicle Manufacturers leading public, private, medium and In November 2018, she received Association (KVMA), the East large sized companies as a member her certification as an Executive African Business Council (EABC) of the B Team Africa. The B Team is Coach from the Academy of and chairs the Kenya Motor Industry a not-for-profit initiative formed by Executive Coaches (AOEC) UK to Association (KMIA). She is also the a global group of business leaders strengthen her capacity coaching Vice-Chair of the Kenya Private to catalyze a better way of doing corporate leaders and executives.
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n his current role, he oversees a Diageo subsidiary based in Nairobi, business operations in 50 coun- #5 as Strategy Director. In this role, he tries in Western and Eastern led the NSE-listed beer manufactur- Europe, as well as Russia, the er in shaping a five-year strategy. MiddleI East and North Africa Peter Ndegwa This included the development of an region. He was appointed to the affordable- beer strategy which saw role in July 2018, becoming the first Mr Peter Ndegwa joins Safaricom from Diageo, the creation of Senator Keg. African to run a large business for a global leader in the alcoholic beverages Senator keg has gone on to Diageo outside of Africa. business, where he is currently serving as become one of Kenya’s and Diageo’s In his time in Continental Managing Director of Continental Europe most iconic beer brands. It has led Europe, his energy to drive trans- to a strong partnership with the formational change has delivered Kenyan government and created a significant results. Prior to this Peter viable entry level beer which reduc- led two of Diageo’s biggest business- Instead of es the consumption of illicit brews, es on the continent, Guinness Ghana increases local raw material use and Breweries Plc and Guinness Nigeria just looking boosts job creation. As a result, it Plc. At Diageo Peter has developed at what was recently featured in the Harvard a reputation for cultivating a strong governments Business Review. inclusive culture which has been can do, we During that period, Peter also paramount in his leadership. need to led significant business development He began his eleven-year acknowledge agendas including the acquisition career with global consulting firm that large of Serengeti Breweries Limited, a PwC as a consultant, relocating major subsidiary in Tanzania, and to London, UK under the firm’s organisations unwound a complex shareholding Peter Ndegwa (left) during his reign as CEO of Guiness Nigeria talent development programme can improve structure with SAB Miller (now ABI) in 1996. In 1999, he transitioned society and in both Kenya and Tanzania. from the Accountancy practice to shift how He left EABL in October 2011, recovery in share price. He left water and environment programmes. the Consulting & Corporate Finance people think starting an eight-year sojourn away Nigeria for his current role in Europe Following the appointment as Unit at PwC. After completing his and feel. from home to Diageo subsidiaries in July 2018. CEO of Safaricom Plc, Peter once MBA, Peter took on key assignments For me, this Guinness Ghana Breweries plc and In his career spanning over 25 again returns home to Nairobi. Peter in corporate advisory and project is about Guinness Nigeria plc both of which years, Peter has demonstrated com- is married with one child. management at leading European he led as CEO. working mitment to simplification of business He holds an MBA from the and American banks and insurance His commitment to investing in process and on leadership and talent London Business School and a businesses. with others people, introducing new brands and development has helped create a sus- Bachelor’s degree in Economics from He returned to Nairobi in 2002, to build improving efficiency saw him grow tainable business for the future. the University of Nairobi. where he worked on several sig- sustainable both business despite the challenges This has not only resulted in He is also a Certified Public nificant corporate advisory assign- businesses they were facing. a career decorated by new brands, Accountant and a member of ments - providing strategic transac- that can In Ghana, he led talks with the but also winning accolades as an the Institute of Certified Public tion advice, due diligence, valuation, make a government leading to introduction employer, manufacturer, purchaser Accountants of Kenya (ICPAK). financial planning and modelling, difference of an affordable beer in the country. and investor. Peter draws his inspiration from In Nigeria, he helped transform his teachers in primary school, the and significant project leadership in people’s Peter has also demonstrated and management - mostly in the the business - at a time when the commitment to sustainable business legendary Dr Geoffrey Griffin - the financial services sector. lives.” country was facing economic chal- practices. Beyond championing tal- late founder of Starehe Boys Centre- Peter Ndegwa In 2004, Peter joined East lenges due to declining oil prices. ent development, he has also enabled his alma mater, and his parents, African Breweries (EABL), His efforts resulted in a 40% a range and depth of investment in especially his mother.
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#6 Research and Advocacy, becoming Chief Executive Officer in 2015, tak- ing over from the legendary Betty Phyllis Wakiaga Maina, who joined the public service as the Principal Secretary for Trade Phyllis Wakiaga is the Chief Executive of and Industry. the Kenya Association of Manufacturers Phyllis is an alumnus of the Swedish Institute Management (KAM), which is the credible voice of Program on Sustainable industry with over 1000 members. Business Leadership and Corporate Social he is an Advocate of the Responsibility and was High Court of Kenya part of the inaugural and holds a Masters in program for Africa in International Trade and 2014. She has also been SInvestment Law from the University trained in the Role of of Nairobi, Masters in Business the Private Sector in Administration from Jomo Kenyatta Government Policy by University of Agriculture and Strathmore Business Technology, Bachelor of Law Degree School and John from the University of Nairobi, Hopkins University; Diploma in Law from Kenya School Investment Treaty of Law, and a Higher Diploma in Law and Arbitration Human Resource Management from Born in 1982, - Africa International the Institute of Human Resources Phyllis has been Legal Awareness (AILA) Management Kenya. recognized as UK London and High- Phyllis began her career in among the Top Performance Boardrooms- 2005 as a Legal Assistant at Otieno Africa Economic Institute of Directors. Omunga and Ouma Advocates. She Phyllis represents KAM then joined Kenya Airways (KQ) in Leaders for on various state corporations 2007, as a customer relations exec- Tomorrow on boards and chairs the Kenya Water utive, serving in that capacity for the Choiseul Industrial Alliance. She is also the three years. She was then appointed 100 Africa list United Nations Global Compact a coordinator of government and 2018 and one Network Representative in Kenya. industry affairs at KQ. Later she of the 2019 Born in 1982, Phyllis has been became Government and Industry Most Influential recognized as among the Top Africa Affairs Division manager at the air- People of African Economic Leaders for Tomorrow on line. the Choiseul 100 Africa list 2018 Ms Phyllis Wakiaga In 2013, she joined the Kenya Descent, Global and one of the 2019 Most Influential shares insights on 100 Under 40 Association of Manufacturers energy efficiency at People of African Descent, Global (KAM), as the Head of Policy, CEO's Forum 100 Under 40.
22 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 23 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations
#7 s one of Kenya’s most turned around the fortunes of the respected media executives, KBC, where, over his three-year ten- he was the first chairman ure, he demonstrated that a national Wachira Waruru of the self-regulating media broadcaster could be both compet- Abody, the Media Council of Kenya, itive and viable, while being run Wachira Waruru is the Group Managing Director and has twice been chairman of the professionally. of Royal Media Services (RMS), Kenya’s leading steering committees that organised Though he studied education broadcaster. Royal Media Services portfolio the country’s presidential debates and trained to be a teacher, Wachira includes two television stations, 13 radio stations in 2013 and 2017. He is the cur- caught the journalism bug early, and digital platforms, making Wachira one of the rent Chairman of the Media Owners starting his career in journalism as most influential and powerful figures in the media Association (MOA) having taken an intern in 1983 with Kenya’s fore- over from Dr. Hanningtone Gaya on most political magazine, the Weekly landscape in Kenya. April 27th 2017. Review. By 1992, he had worked his Wachira joined Royal Media way up to become the magazine’s Services (RMS) in 2007, after being Managing Editor. head-hunted to replicate the success Wachira is credited He went on to work for the he had achieved in his previous with having turned European Commission Delegation to role, as the MD and CEO at Kenya’s Kenya, writing weekly and monthly national broadcaster, KBC. He led around the fortunes of reports on the country’s political and RMS from fifth place in the broad- the KBC, where, over economic environment. cast media market to first place in his three-year tenure, Wachira was then hired by the less than a year leveraging on local Standard Group to become its Group content to engage the broadcast he demonstrated that Editorial Director, a position he audiences. a national broadcaster held for six years, during which, he RMS has held on to its top mar- could be competitive increased circulation figures for the ket position for ten years, at times Standard Newspaper and viewership with over 50% of the market share. and viable audience for KTN, for a long time Wachira is credited with having Kenya’s leading news TV station.
24 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 25 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations
#8 Geoffrey Odundo Geoffrey Otieno Odundo is the Chief Executive of the Nairobi Securities Exchange PLC (NSE) the largest stock Exchange in East and Central Africa. Appointed CEO of NSE on March 3, 2015, Geoffrey is an accomplished Investment Banker and has been in the financial services sector for the last 26 years, 20 of which have been in the Capital Markets n his current role, Geoffrey has ed the development of the second spearheaded the development of To support Africa’s Derivatives Market in Africa, offering innovative financial solutions for economic growth and investors a new avenue for deploy- both investors and issuers mak- development, he has ment of capital in the wake of rising Iing the NSE the second most product asset price volatility in both regional diverse market in Africa. Thus, sup- spearheaded regional and international markets. porting Kenya’s aspiration to become integration among Geoffrey has democratized access Africa’s premium financial services African Securities to capital markets to Small and hub by the year 2030. Medium Scale (SMEs) enterprises Notable achievements include Exchanges as director through the development of Ibuka, fronting the roll out of the world’s first and head of the a unique incubation and acceleration mobile traded government infrastruc- African Securities program that provides an opportu- ture bond dubbed M-Akiba which nity for SME’s to access public mar- plays a significant role in informing Exchange Association kets within a regulatory environment the future of Capital Markets trans- secretariat designed specifically to meet their actions globally. He also spearhead- needs.
26 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 27 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations Milele Health Plan Health for Life Lifetime Cover Overseas Treatment Free Personal Accident & Critical illness cover Free professional consultation in stress management, nutrition & health Family Planning
Over the course of his Geoffrey has advised on a num- of Certified Investment Financial career, Geoffrey has contrib- ber of corporate finance mandates Analysts (ICIFA). uted immensely towards the growth in both the public and private sec- He is also a Director of the of the Capital Markets industry in tors; he has also managed key Association of the Stock Exchanges Kenya through current and former mandates in the asset management of Africa (ASEA) and is a Member roles as a Director/Board Secretary, industry through leading in various of the Thomson Reuters Africa Kenya Association of Stock Brokers senior roles in asset management, Customer Advisory Network. and Investment Banks, Chairman of corporate finance and securities Geoffrey Odundo holds a Master’s the Financial Standards Committee - trading. degree in Strategic Management Kenya Bureau of Standards as well He is currently a Director of the from the United States International as being a Board Director of NSE. Central Depository and Settlement University-Africa and an under- To support Africa’s economic Corporation, a Director of the graduate degree in Mathematics growth and development, he has NSE Clear, and a trustee of the and Economics from the Egerton spearheaded regional integration NSE Fidelity Funds. Geoffrey is University. among African Securities Exchanges a member of the Central Bank He is also an Advanced as director and head of the African Consolidative Forum for Domestic Management Program (AMP) grad- Regulated by Insurance Regulatory Authority *Terms and Conditon Apply Securities Exchange Association sec- Debt Market (CFDDM) and a uate from Strathmore Business retariat. Council Member of the Institute School.
28 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 [email protected] MONTHLY | JANUARY-FEBRUARYBritamEA BritamEA2020 29 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations
Bamburi Cement where he served as Prior to his Group Financial Director and Chief #9 Financial Officer for the East Africa appointment, Joshua region. In addition to this, he was served as Chief the Group Business Performance Joshua Oigara Financial Officer and Manager at Bidco Africa between 2002-2004. Joshua is described in LinkedIn Member of the Board Joshua is a Certified Public as a very passionate manager of Directors of the Accountant of Kenya, a title he boasting a broad managerial bank for one year. He obtained from the School of Accountancy, the Strathmore experience in providing leadership joined KCB Group University in 1997 and a member to teams and is great in strategy, in November 2011 of Certified Public Accountants of finance, business development, from Bamburi Cement Kenya. He obtained a Masters of innovation and Information Business Administration degree in Technology (IT) where he served as International Business Management Group Financial from Edith Cowan University in oshua Oigara was promot- Director and Chief Australia in 2011. He also com- ed to the coveted position of pleted the Advanced Management CEO Kenya Commercial Bank Financial Officer for Program from INSEAD France in (KCB) Group in January 2013, the East Africa region 2010. He completed the program aJ position he holds to date. for Management Development at Joshua is described in LinkedIn the Duke University Fuqua School as a very passionate manager boast- of Business in North California in ing a broad managerial experience 2006. Prior to this, he received a in providing leadership to teams Bachelor of Commerce degree from and is great in strategy, finance, the University of Nairobi. business development, innovation He won Africa investor (Ai) and Information Technology (IT). CEO of the year awards for 2017. According to LinkedIn, Joshua is a The award recognizes and rewards solid business executive with inspira- CEOs that have shown commitment tion and ability to lead and motivate vation that was quickly imitated in and sustainable development. This ordinary performing staff to achieve the industry. trait has been displayed in Joshua excellence and world class perfor- Currently, the KCB Bank boasts through his and the Central Bank mance. the largest brand network in the of Kenya timely actions when both The last seven years have wit- region with over 250 branches, 962 Imperial and Chase Banks collapsed nessed Joshua presiding over KCB ATMs and 10,102 Banking agents. due to corporate governance lapses a Bank Group, East Africa’s largest KCB has also been a catalyst in couple of years ago. bank and led the acquisition of the championing motor sports in East In public service, Joshua Chairs National Bank of Kenya towards the Africa, culminating in Rally Kenya’s the Energy Regulatory Authority end of 2019. return to the coveted WRC status and sits on the prestigious Vision Among the achievements of the after an 18 years spell. 2030 Delivery Board. In 2020, he KCB Bank under his watch is the Prior to his appointment, Joshua is keenly being watched to play a partnership with Safaricom to offer served as Chief Financial Officer and strategic role in the sponsorship for loans through the mobile phone that Member of the Board of Directors Rally Kenya, the successor of the is KCB MPesa, a game changer in of the bank for one year. He joined Safari Rally during its maiden run the financial services sector; an inno- KCB Group in November 2011 from return to the WRC calendar.
30 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 31 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations
#10
Dr. James Mworia r. Mworia joined Centum as He represents Centum as a an intern in 2001 and rose non-executive director on the Boards to the corner office in less of UAP Holdings, UAP Insurance, With over 11 years of experience in investment banking than seven years. At the UAP Insurance Sudan, UAP Life and management at Trans-century and Centum, Mworia is Dtime of his appointment as the CEO Assurance, UAP Properties, Nairobi a CFA Charter holder, Certified Public Accountant, holds a at the age of 30 years, he was the Bottlers, Mount Kenya Bottlers, Bachelor of Law Degree from the University of Nairobi and youngest CEO of a listed company Isuzu East Africa and NAS Airport an Advocate of the High Court of Keny in Kenya. Services and SIA (K) Holdings. With over 11 years of expe- Dr. Mworia has received the fol- rience in investment banking and lowing awards: Africa’s Rising Stars management at Trans-century and 2014, Africa CEO of the Year 2013, Centum, Mworia is a CFA Charter Africa Young Business Leader of holder, Certified Public Accountant, the Year 2011 and Archbishop Tutu holds a Bachelor of Law Degree Leadership Fellow 2012. from the University of Nairobi and He is also the Chancellor of the an Advocate of the High Court of Machakos University, one of the Kenya. He is a member of Law youngest public university that was Society of Kenya (LSK) and a mem- awarded a Charter on 7th October ber of the Chartered Institute of 2017. Management Accounting (CIMA).
Dr. Mworia has received the following awards: Africa’s Rising Stars 2014, Africa CEO of the Year 2013, Africa Young Business Leader of the Year 2011 and Archbishop Tutu Leadership Fellow 2012
32 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 33 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations
Omnicom Media Group is one of the #11 World’s largest advertising group. Lenny prides himself with the fact that the Saracen Media Group Lenny Nganga has the lowest if not negligible staff turnover in the advertising industry. He actively strives to create a learn- Lenny Nganga is the CEO at Saracen ing, fun, collegial working environ- Media Group. He has had a 25-year ment that endear the employees to career in Advertising, starting out the company. at Ogilvy and Mather as a Media Lenny believes in giving back He actively Executive, where he rose through the to the industry that has enabled strives to create ranks fast enough to be headhunted by him to make a living, and to this a learning, fun, end, he served as Vice chairman of collegial working McCann Erickson to manage a span of the Association of Practitioners in 39 countries. environment advertising (APA) for 3 years, before that endear the stepping up to Chairman for a 4-year employees to the term that expired in 2018. He still hilst at locally owned internation- company McCann, Lenny al advertising independent serves on the legislative committee of launched the agency. At Saracen Media, the APA to support the association’s first ever Media Lenny was elected CEO by lobbying agenda. IndependentW agency in East his fellow partners a “Primus Lenny also serves as the Africa, Universal McCann, Interpares” and in his 16 Chairman of the Oversight commit- earning him the HK McCann years at the helm, he has led tee of the Kenya Audience Research Global award, for passion the agency to increase turno- Foundation (KARF), the Industry Foundation, an organization dedi- ness leaders, designed and delivered and dedication to driving ver by 1,000%. body mandated to deliver gold stand- cated to the preservation and rejuve- by CEOs who are leaders in their media excellence in Africa. In addition, the adver- ard media consumption research, a nation of the Tsavo ecosystem which fields to impart practical, cutting This award is only given to tising agency has expanded role he has fulfilled since 2013, and is in peril. edge, and field-tested knowledge to 10 people in any one year into Uganda, and Tanzania, continues to do so to ensure that the “The Tsavo holds a special place the learners. The programme is in its across McCann’s global net- in addition to forming inter- research continues evolving to be in my heart, a magical trip in pri- second year. work. national strategic partner- even more accurate, in addition to mary school to the Mzima springs, Lenny holds a Bachelor of Arts In 2003, Lenny left ships that have propelled the using contemporary media research Shetani Lava flow and the park’s degree from the University of Nairobi McCann to join Saracen agency from last place at methodology. Both roles are Pro- wildlife captivated me then and still in Political Science and Philosophy, Media, an advertising agen- inception, to the 2nd largest bono. do now,” notes Lenny. plus numerous Executive education cy he co-founded with three agency group in East Africa, As he is also passionate about He is also a co-founder of the certifications. In his leisure time, he other partners. This was the with affiliation to the glob- the environment, Lenny serves on Amalgam leadership programme, a enjoys Golf, Computer gaming, and first, and currently the only al Omnicom Media Group. the board of the Tsavo Heritage unique training programme for busi- the wildlife.
34 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 35 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations
#12 Serah Katusia Currently Managing Director, Mediacom and MEC East Africa, Serah Katusia leads a team of key connection and content experts to deliver strategy, execution and content planning that drive the best in market value across all media platforms in East Africa.
atusia is a highly driv- thinking, communication planning en and experienced top and business both locally and in advertising executive who the region. has vast knowledge in the As a leader, Serah thrives in traditionalK and new media adver- creating teams that deliver effi- tising and management skills. She ciently and is committed to the Serah enjoys has an extensive understanding common vision of the organization. giving back to on how to win in the advertis- She has perfected the art of being society through ing industry and driving growth human at work while still ensuring for brands in Kenya and beyond. high level delivery of work across mentorship at She was been in charge of some the system. the International of the most iconic brands local- Serah was the first Kenyan School of ly and globally. From Coca-Cola woman Jury President at Loeries Advertising (ISA), to Safaricom, KCB, P&G, Diageo, Awards in Durban this year, she where she is a Tigo Tanzania, USAID, Vodafone, holds a Post Grad Degree from board member PSK, Shell, KQ, Brand Kenya, University of Liverpool, CIM as well as being KTB, OPPO amongst others. Diploma from Oxford University a key mentor In her learning curve and expe- and she recently completed an rience, Serah remains passionate, executive leadership course with for women in is a high performer and has a deep Harvard Business School in advertising. love for content, connections, nur- December 2019. turing talent and delivering busi- Serah enjoys giving back to ness solutions. society through mentorship at the Previously, Serah held the posi- International School of Advertising tions of the Country Manager, JWT, (ISA), where she is a board mem- Scanad & Roundtrip Tanzania ber as well as being a key mentor (2015 and 2016), Media and for women in advertising. Client Service Director JWT and She is ardent supporter of Scanad Tanzania (2015 and 2014) Strathmore Marketing Club and and Regional Media Director East just launched Crucible, a market- Africa, Scan Group (2012-2013). ing competition enabling students These multi-discipline senior and get real life experience, in addition Africa positions have given her to being a HULT PRIZE judge for unmatchable experience in system Africa.
36 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 37 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations
ebecca began school with the dream of becoming a #13 pilot but found her passion slowly gaining roots in law andR finance. She is a highly experi- Rebecca Mbithi enced professional with an extensive background in leadership in vari- Rebecca Mbithi is the Chief Executive ous organizations at director level specializing in law, project finance, Officer and Managing Director corporate restructuring, equity/ debt at Family Bank, an indigentous raising and governance. commercial bank in Kenya and the A seasoned profession- fourth largest bank by branch network al, Rebecca holds a Master’s in Business Administration in Strategic Management from United States International University-Africa and an LL. B degree from the University of Nairobi. She is a Certified Public Accountant and a member of the Institute of Certified Public Accountants of Kenya (ICPAK), a Certified Secretary and a Member of the Institute of Certified Secretaries, Prior to taking over an advocate of the High Court of Kenya and a member of the Law the steering role at and debt raising, risk management, Society of Kenya. Family Bank, Rebecca compliance and controls, providing Prior to taking over the steer- was the Company legal services and strengthening the ing role at Family Bank, Rebecca bank’s governance structures. was the Company Secretary and Secretary and Director, “I have been part of the transfor- Director, Legal Services - a posi- Legal Services - a mation journey for the bank having tion she held for four years. That position she held for been part of the Family Bank’s senior put her in the steering role where management team for four years. she was instrumental in strategy four years. Taking over as the CEO has given me and business development, capital the opportunity to steer the ship
38 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 39 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations
Banking on the win for Africa at the African Banker Awards 2019
We go to extraordinary lengths to exceed expectations and get things done. We challenge limits, we close distances, we connect people to opportunities across borders, languages and cultures. African ingenuity knows no limits; neither do we.
That is why we are proud to announce that our Corporate and Investment Banking operations across the continent have been awarded Investment Bank of the Year. This award recognises the success of Absa Group’s efforts to contribute to the transformation of Africa’s fi nancial sector, as well as deepening the relationships
Thank you to all whose faith and trust in us has made this accolade a reality.
with formidable strategies that “I am very humbled to be recog- commerce in our country. At Family have put us back to profitability and nized by Business Monthly, one of Bank, we will continue to work hard we continue on an upward trajectory. the most respected monthly publica- to create value for our customers and I am privileged to be heading a team tions on business in Kenya, as one of together we can work towards grow- that comprises of focused staff whose the CEOs whose work has contrib- ing our economy,” added Rebecca. resolve is to put the customer first uted to the growth of industry and Away from work, Rebecca is pas- while providing innovative products sionate about impacting communi- and services that meet their needs,” ties through provision of clean and says Rebecca Mbithi. “I am very humbled safe water. On her nomination as one of the to be recognized by This is especially through Family Top 25 Business Leaders to watch in Bank’s sustainability projects such Business Monthly, one www.absa.africa Kenya in 2020, Rebecca says she is as Maji kwa Wanafunzi. humbled by the recognition and ded- of the most respected Rebecca is an avid marathoner icates it to the customers of Family monthly publications who has run in five of the world’s Absa Group, serving Kenya as Barclays. Bank whose support of the brand on business in Kenya” major marathons including New has been unmatched. York, Chicago, London and Berlin Marathons.
Absa Group Limited Reg No 1986/003934/06. 40 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 41 Absa Group Limited uses Barclays trademarks under license from Barclays Bank Plc. ANNIVESARY EDITION Special 25th Anniversary Awards Nominations
#14 Esther Ngomeli
Esther Ngomeli is co-founder tion, powered by a knack for creativ- and director of Redhouse ity and a passion for growing great Group, a leading multi- brands in sub-Saharan Africa. function, Integrated Marketing She also has been responsible Communications (IMC) agency for initiating and growing Media with an expansive and growing Edge Group and its subsidiary business units from infancy in footprint in East and Central the year 2000, into reputable Africa. Within the Group, she brands in various marketing serves as the Group Chief communication disciplines, led Operating Officer in addition by Media Edge Interactive now to her last assignment being BBDO Media Edge Interactive, the Managing Director of the which was rated one of the TOP 100 fastest growing Medium Sized anchor advertising agency – Companies in Kenya in the KPMG BBDO Media Edge Interactive, Business Daily TOP 100 Index. The a company she founded and firm also won coveted awards from served for the last 18 years. the Grand Prix - Kenya’s first and only at the Loeries Awards – Africa Chapter, Gold Loeries, APA awards just to name a few. Other com- sub-Saha- panies within the group included ran Africa to Media Edge Public Relations, Reel be bestowed with ship and marketing role in Edge Production and Outdoor Care the highest and prestigious Fellow the growth of key brands in Kenya Kenya, all now domiciled within the (FCIM) status by the Chartered and beyond. new investment vehicle Redhouse Institute of Marketing (CIM) United She has an MBA with merit Group founded in 2012. Kingdom, for her strategic leader- from University of Leicester (United Other positions held include; Kingdom) and serves on the board of ith over 20 years of Co-Founder & Director – Business Super Brand Council (East Africa), experience in senior Development & Marketing Services She also has been the world’s largest independent leadership positions, Economic Intelligence Limited, a responsible for arbiter of branding, which identi- Esther has been start-up venture which offers stra- initiating and growing fies and pays tribute to exception- instrumental in pro- tegic research and business infor- al brands by recognizing, reward- viding strategic business and commu- mation services, publishers of MI Media Edge Group and ing and reinforcing leading brands Wnications counsel that has resulted Market Intelligence and promot- from all over the world; and also its subsidiary business in the growth of key brands and ers of MI Banking Awards, a top units from infancy in a board member of Joyful Women businesses, both on local and regional rated platform for the banking sec- Organisation (JOYWO), an NGO platforms, and in all sectors of social/ tor performance; Public Relations the year 2000, into founded to empower Kenyan women economic activities. She has honed Manager - One Stop Media and reputable brands in economically to enhance household her competencies in leadership, stra- Head of Operations/Administration- various marketing food security among them through tegic planning, business and finan- Sharper Images Limited both supporting their involvement in sus- cial management, marketing, brand in the Intergrated Marketing communication tainable livelihood projects. She design and integrated communica- Communications category. disciplines is also a member of Kenya Private Esther is the second woman in Sector Alliance (KEPSA).
42 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 43 ANNIVESARY EDITION Special 25th Anniversary Awards Nominations
In the four and a half years that It is here that Mutuma cut his teeth #15 he has held the position, Mutuma in business and management rising has registered growth of cash flow through the ranks in the 9 years that In the four by 2,000% in 3 years, met and he worked there. and a half Andrew Mutuma surpassed Earnings Before Interests “I cannot pin point exactly what and Taxes (EBIT) four years in a drew me to Exxon Mobil but the years that row and is optimistic about what the technical experience I gained from he has held Persistent, tenacious, focused and future abounds. working with a host of engineers in the position, value driven are some of the words Under his leadership, DHL the company gave me a heads-up Mutuma has that can best describe Andrew Express has received Top Employer over other peers. It gave me a much registered Mutuma, the ‑. With a global Award in 2016, 2017, 2018 & deeper understanding of the oil and growth of network in over 220 countries and 2019 and recognitions such as Best gas industry as well as the business cash flow territories across the globe, DHL Company to Work for in 2015, 2016 product side and how it impacts the & 2017 as well as the 2019 KRA industry ecosystem. I wouldn’t be in by 2,000% is a leading logistics company Tax Compliance Award for Most the position I am today without this in 3 years, with a history of 50 years since its Facilitative Air Cargo Shed that was experience,” he explains. met and inception, and Mutuma sits at the presented to him by H.E President Mutuma’s vast expertise in the surpassed helm of the Kenya operations. Uhuru Kenyatta. corporate realm has been gained Earnings These successes have however through over 20 years’ experience Before not come without their challenges. in general management, strategy Interests and “Management of people, a constant- development and execution; sales Taxes (EBIT) ly changing market in terms of cus- and revenue management in vari- tomer preferences and regulatory viable relationships with various ous industries ranging international four years in s a global company, DHL policies, are big challenges but also stakeholders,” he says of his engage- logistics, oil and gas, telecommuni- a row and comprises three main divi- offer loads of learning opportunity,” ment with his business and industry cations and banking. is optimistic sions: DHL Express, DHL he says of the top challenges he stakeholders and partners. ‑On top of currently hold- about what Global Forwarding, Freight faces. Mutuma has always been tactical ing various board directorships, the future Aand DHL Supply Chain. In his In his capacity, he has pushed and resilient. In addition to working he is the former Chairman of the abounds. appointment to the position in 2015, through these rough patches with for DHL Express, his other major Chartered Institute of Marketing, former DHL’s Managing Director for optimism noting that leadership isn’t career milestone was working for Kenya Branch, and is a Fellow and Sub-Saharan Africa Charles Brewer a walk in the park. One has to Exxon Mobil, an American multina- Chartered Marketer, a professional had stated that Mutuma’s wealth of always be willing and ready to make tional oil and gas corporation which status awarded by the Chartered experience in general management, tough decisions. is the largest refiner in the world. Institute of Marketing, UK. sales and marketing would be a “There is not a single day I He joined Exxon Mobil in 1999 What drives him to be so suc- great asset to DHL Express and take for granted or work any less right after completing his Bachelor’s cessful in his career? The same trait that he was confident that Mutuma hard. I work full hours plus overtime degree in Commerce. What makes we see in a number of successful would move the DHL brand to and know all my customer base on this opportunity special to him is executives: passion. He concludes, new heights in the Kenyan market. an individual level and I’m always that, after two application rejec- “I am only successful when I’m Brewer’s words have indeed come willing to go the extra mile to build tions- his third attempt to work engaged in things that I’m passion- to fruition. with the company was successful. ate about.”
44 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 45 ANNIVESARY EDITION The Lifetime Achievement Award
Recognizing achievements and contributions by outstanding individuals busi- ness, in addition to heavy presence in real estate, insurance Spear (EBS) for outstanding leader- in all the elite private and public and manufacturing. ship and service to Kenya in business universities and hospitals. Others As we know, entrepreneurship leadership. A lifetime achievement represents, therefore, success over a become, like Vimal Shah, outstand- begins with a dream, a purpose, a For the 75 men and women very long time and the award is given to last a lifetime. ing leaders of all the institutions desire to meet a need. Though profit- who are deserving and not named they interact with. And in the pub- ability is usually a latent reason, it is this year for one reason or another, By DR. HANNINGTONE GAYA PHD. , FIMI (UK)., EBS lic space, these two and Benson never the main reason. Most people you are noted and recognized. Your Wairegi’s name have donned the strive for hard work, excel in net- day will come. So, continue striving ifetime achievement awards enable the business environment academia as chancellors or chairmen working, look for partnerships where towards the same goals like these 25, As we know, are given out by institutions, conducive, fair and competitive. of university councils. Any business a dearth of expertise is inherent: each one of you in your own, innova- to recognize achievements The Top 25 leaders honoured they have touched have recked in Enter Kiprono Kittony. To him, it is tive and unique way. entrepreneurship and contributions by out- here have worked and continue to billions in revenue. a desire to prove and improve. Kenya The bottom line, the equaliser, begins with a Lstanding individuals during the most work to improve the wider business Of course, there are others like National Chamber of Commerce and is that those who work hard, are dream, a purpose, time of their life or over the whole of landscape, each fired by entirely Prof. Olive Mugenda who are blessed Industry is a standing example of persistent, patience, focussed and dil- a desire to meet a career, rather than or in addition to different set of compulsions than is with the opportunity to change the what a transformational leader can igent, succeed. That’s where the role a need. Though single contributions. When given by the norm, and in most cases, pro nation’s destiny, by transforming a achieve. On the eve of compiling of media awards and public recogni- profitability is a media house, its objective is to note bono. They have been inspired by public university into an academ- this inaugural award, Kittony was tion comes in. The Media is the pub- usually a latent the successes that individuals have the desire for personal gain, success, ic centre of excellence, with fully honoured by the President, who lic watchdog and often the barom- reason, it is never and continue to achieve during their fame, honour or self-actualisation. equipped referral university hospi- bestowed on him the eter for all actions and omissions. life. That is when it has an inherent Hence, this recognition. tal. Or SK Macharia who, while award of Elder The media awards, like the inaugural the main reason meaning. It represents a challenge, Even where one has succeeded building his huge family empire, has of the Order of Business Monthly Top 25 Leaders to where the individual is alive. in their profession, work, employ- changed the face of Kenya media for- the Burning watch in 2020, should be seen in this A lifetime achievement rep- ment or entrepreneurship, rewards ever through investments in local light, bringing to the public domain resents, therefore, success over a very have differed in value, satisfaction content for his broadcast acknowledgements of these success- long time and the award is given to and recognition. This has been as es and above all, the pursuit and last a lifetime. clear as daylight. achievement of excellence. The next In this Extraordinary Issue of For instance, Manu Chandaria paragraph starts the Number the Business Monthly, published to is not only the owner of some of One Lifetime Achievement celebrate 25 years of excellence in the most capitalized enterprises. His Award recipient. magazine publishing in Kenya, the name dons all the walls, boards publisher, in collaboration with The and entrances of leading Knowledge Warehouse and a num- business schools ber of leading research houses and Public Relations (PR) practitioners, are celebrating 25 top women and men who continue to drive busi- ness, in addition to finding time to influence policies that
46 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 47 ANNIVESARY EDITION Top Lifetime Achiever
2012, Dr. Wairegi was appointed Chancellor of Kenyatta University #1 Dr. Benson Wairegi by His Excellency, President Uhuru Kenyatta in July 2013. GROUP MANAGING DIRECTOR, BRITAM In December 2011, Dr. Wairegi was conferred a Head of State Commendation, Elder of the Burning Dr. Wairegi started his career Spear (EBS) by His Excellency in 1977 as an auditor with President Mwai Kibaki in recogni- Pricewaterhouse, the forerunner tion of his contribution to nation of PricewaterhouseCoopers building within the financial services (PwC). Between 1979 and1982, sector. He has severed in various capac- he served as a part-time ities in the Association of Kenya tutorial fellow in Auditing in Insurers (AKI) and was Chairman of the Department of Accounting the Association between 2006 and pany, Britam within the Faculty of Commerce, 2008. He has also served as a board acquired a at the University of Nairobi. member of the Insurance Training strategic stake and Education Trust (ITET), of 10.64 per cent in Agricultural Finance Corporation, Equity Bank, Kenya’s fter completing his CPA exams in 1979, Federation of Kenya Employers and largest bank in custom- he left PwC and joined Britam in 1980 of various secondary schools across er deposits, and 48.82 per cent as the Chief Accountant, rising through Kenya. shareholding in Housing Finance, the ranks to his current position as the In Britam, he has presided over the largest mortgage finance provid- while AGroup Managing Director. the transformation of the company er in East Africa. Britam Dr. Wairegi is a transformational leader from a small home service insur- In 2010, under the leadership of Insurance Company (Rwanda) who is synonymous with the insurance and ance company employing about 40 Dr. Wairegi, Britam’s regional expan- Limited was incorporated and asset management sectors in Kenya. Under his employees, to a diversified finan- sion commenced with the group ven- licensed in 2013 by the National stewardship, many businesses like Britam and cial services group with a presence turing into Uganda with the incorpo- Bank of Rwanda. associated investments have experienced tre- in seven African countries current- ration of Britam Insurance Company The year 2011 marked an mendous growth and have won numerous local ly employing over 1,000 employees (Uganda) Limited. Britam Insurance important watershed in the histo- and international awards. and 3,000 financial advisors. Company (South Sudan) Limited ry of the company. The company In addition to successfully steering Britam The Britam today offers a was incorporated in February 2012 was listed at the Nairobi Securities for over three decades, Dr. Wairegi has played wide range of financial products and is licensed to underwrite all Exchange, in a move aimed at a pivotal role in the growth of the insurance and services in Insurance, Asset classes of life and non-life insurance, unlocking the shareholders’ value, and the inclusive financial services., through his Management, Banking and Property. attracting additional capital for the membership either as Chairman or board mem- The product range includes: life, Group’s expansion strategy, aiding ber of various boards not just in the insurance BIO health and general insurance, pen- in the penetration into the regional industry but also in banking, the public sector, sions, unit trusts, investment plan- The year 2011 market and the expansion of the education and other not for profit organizations. ning, wealth management, off-shore marked an important asset management business and real Since 2004, Dr. Wairegi has served as a Dr. Wairegi was born on investments, retirement planning, estate investments. Through listing, Jan 1 1953. He holds a watershed in the Director of the Board of Housing Finance discretionary portfolio management, Britam has given an opportunity Bachelor of Commerce Corporation Limited and is a former Vice property development and private history of the company. to about 25,000 Kenyans to own a (Hons) in Accounting from Chairman of the Board of Equity Bank. equity. The company was stake in the company. the University of Nairobi In January 2010, he was appointed and a Master of Business The companies within the group listed at the Nairobi In 2012, the group rebranded Chairman of Kenyatta University Council by Administration (MBA) in have been very successful in growing Securities Exchange, from Britak to Britam, creating a His Excellency, the Retired President, Hon. Strategic Management, their business and both the insur- new fresh identity that would aid Mwai Kibaki, for a term of three years. also from the University of ance company and the asset manage- in a move aimed in communicating brand uniformity Following the expiry of his term as Chairman Nairobi. He is a Certified ment company have become market at unlocking the and consistency across all opera- of the Council in January 2013 and the enact- Public Accountant of leaders and very strong brands. shareholders’ value tions of the group in the region. ment of the new Universities Act No. 42 of Kenya. In 2007, in a strategic move The rebranding created a reputa- aimed at further growing the com- ble strong brand, bringing
48 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 49 ANNIVESARY EDITION Top Lifetime Achiever
brand consistency and the “One BRITAM AWARDS & RECOGNITIONS GRANTING ORGANISATION YEAR Company One Brand mantra. The Company of the Year Award Association of Kenya Insurers 2007-2018 rebranding also helped the company to have a single customer view of Excellence in Education Award LOMA 2018 suppliers and service providers. Regional Superbrands Status - East Africa Superbrands East Africa 2016-2018 In accordance with the Groups Emporis Skyscraper Award - Britam Tower Emporis GmbH 2017 growth strategy hinged on becoming 15 awards including The Think Business Investment 2017 the market leader across business - Fund Manager of the Year: Overall winner Awards lines, Britam acquired a 99 per cent stake in Real Insurance Company in - Fund Manager of the Year: Pensions 2014, effectively expanding the com- - Unit Trust of the Year pany’s’ foot print into the Eastern Claim Settlement Award in Life Insurance Think Business Insurance Awards 2016 Africa region. Best Insurance Company In Kenya Award World Finance Global Insurance 2016 The acquisition resulted in Industrialist of the Year, East Africa – Dr. Benson Africa Business Leaders Awards 2015 the creation of one of the larg- Wairegi (AABLA) est insurance group in the region, with operations in seven countries Admission to Palladium Hall of Fame – Britam is Palladium Group 2014 the first company in Africa to be admitted namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Malawi and CEO of the Year – Dr. Benson Wairegi Kenya Institute of Management 2013 Mozambique. The acquisition will Company of the Year Kenya Institute of Management 2013 also see Britam increase its market Best Insurance Company in Kenya World Finance 2013 Global share to rank second in the market on gross premium basis. Best Insurance Company in Kenya Capital Finance International 2013 As a result of the successful trend experienced by the company, in September 2017, the International Finance Corporation finalized the acquisition of 10.37 per cent stake Dr. Wairegi in Britam, while in May 2018 is the man AfricInvest completed the acquisi- credited with rto coennect yoau to thec worldh tion of 14.3 per cent stake in the the vision, the company. In June 2018, Swiss Re, determination acquired 13.81 per cent stake in and the skills Britam Holdings. These investments that have are a demonstration of the confidence by these organizations in Britam turned Britam Holdings and these partnerships will into the Operating in 12 countries across the continent and raise Britam’s profile internationally, company it is while providing support in the areas today. internationally makes us a leading African banking group. of social impact, environmental stan- dards, world-class management and technical skills support. Dr. Wairegi is the man credit- Over the years, Britam has sup- ed with the vision, the determina- The company, which has been Visit absa.africa ported the economic and social tion and the skills that have turned in existence for close to five decades development of Kenya through pay- Britam into the company it is today. now boasts of an asset base in the ment of taxes and support of various Amidst the turbulence in the local excess of Kshs.112 billion and has corporate social responsibility initia- and global economy, he has been recorded exponential growth in busi- tives through its foundation. These able to build a super brand and a ness across all the sectors it operates. www.absa.africa include supporting improvement financial powerhouse, surmounting Over the years, Britam’s innova- of maternal healthcare, supporting myriad challenges along the way. tion, outstanding customer service empowerment of youth through The fact that Wairegi has steered and strategy has been recognized sports, performing arts and men- Britam in achieving key strategic both in Kenya and internationally. torship. objectives is indisputable. As at 31 December 2018
© Absa Group Limited Reg No 1986/003934/06. Absa Group Limited uses Barclays trademarks under license from Barclays Bank Plc. 50 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 51 ANNIVESARY EDITION Top Lifetime Achiever
#2 Adil Popat
EXECUTIVE CHAIRMAN: SIMBA CORP. LTD
Simba Corporation, a 51-year old 100% Kenyan company is a diversified business group with interests in Motor Vehicle Assembly and Distribution, Hospitality, Financial Services and Real Estate. Adil Popat is the driving force behind this successful business group.
he group is the exclusive viding a platform to hundreds of distributor of a number of underprivileged youth by equipping well known global brands in them with technical and business motors such as Fuso Trucks skills and creating job opportunities andT Buses, Mitsubishi, Mahindra, for them, upon graduation. SAME Tractors and AVIS. In hos- He has been a member of the pitality the group owns Kempinski Wharton’s Executive Board for Hotel in Nairobi and another in Europe, Middle East and Africa for the sprawling Masai Mara National several years. He served as Chairman Park. of the Kenya Motor Industry Simba’s home-grown brand in Association (KMI) for 3 years and is hospitality includes Acacia Premier, the current Chairman of the Kenya Barista and UVA Wines. The group Vehicle Manufacturers Association is expanding hospitality, to soon (KVMA). He also served as the Chair launch a first-to-market unique of the YPO Gold Nairobi for 2 terms. restaurant concept in Nairobi. In his down time, he In his down time, he enjoys a As part of giving back to the enjoys a round of golf round of golf with peers. He is an community, Adil is passionate about with peers. He is an avid traveller with keen interest in serving the less fortunate people destinations that inspire his love for in the society. He is the found- avid traveller with keen hospitality. Adil Popat has an MBA er of Simba Foundation which cre- interest in destinations from the Wharton Business School ates sustainable opportunities for that inspire his love for (1984) and a bachelor’s degree in the empowerment of targeted mem- Business from the University of bers of indigenous local community. hospitality. Washington, Seattle (1980). Currently, the foundation is pro-
52 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 53 ANNIVESARY EDITION Top Lifetime Achiever
He currently serves as chairman and country delegate of CFAO Kenya Limited. Amb. Awori sits on the board of directors of CFAO Group, a French conglomerate wholly owned #3 by Toyota Tsusho Corporation with subsidiaries across the African con- tinent. Amb. Dennis Awori Amb. Dennis Awori joined Toyota Tsusho Corporation in 2009 and six years later was appoint- CHAIRMAN AND COUNTRY DELEGATE OF CFAO KENYA LIMITED ed Chairman of Toyota Tsusho East Africa. In public service, Amb. Awori also served as Board Member of Amb. Dennis Awori is a Kenya Vision 2030 Delivery Board, a Kenyan diplomat and captain governmental organization in charge of industry and commerce, of the long-term development plan involved among others, in and vision of the country. promoting the private sector in From 2003 to 2009, Amb. Awori Kenya. He holds a BSc degree was appointed as the Ambassador of Committee of the Board for the Vision the Republic of Kenya to Japan and 2030 Delivery Board, which was in Aeronautical Engineering Korea. During his tenure, he assisted responsible for providing technical from the University of in opening a new Embassy in Korea support to the overall board. Manchester in the UK. Other and built strong relations between In 2010, he was appointed to academic achievements Kenya and the two countries, espe- the New Partnerships for Africa include a Business Leadership cially through their private sectors, Development National Steering Program at Ashridge in keeping with Kenya’s new focus Committee. Prior to these, Amb on economic diplomacy. Awori served on the Board of the Management College, and a Upon his return from Japan, he Communications Commission of Management Development re-joined the private sector in 2009. Kenya (2001-2004) and participated program from the Emory Amb. Dennis Awori currently also in the establishing of the regulatory Business School of Atlanta serves as a director in Boards of Amb. Awori is a framework for the telecommunica- University in the US. several companies including Bank tions, mobile telephony and courier of Africa, Carbacid Investments and keen sportsman and industries. East Africa Cables. represented Kenya and Amb. Awori is a keen sports- In 2015 to 2016, Amb. Awori man and represented Kenya and East mb. Awori has spent most served as Chairman of Kenya East Africa at Rugby Africa at Rugby events in the 1980s, of his working life in mul- Airways, the national carrier. He events in the 1980s, as as well as chaired both the Kenya tinationals in the Motor has also served as the Chairman of well as chaired both the Rugby Football Union and the Uganda Industry across East Africa, the Kenya Private Sector Alliance Kenya Rugby Football Rugby Football Union in consecutive Ain which he has held various posi- (KEPSA). KEPSA is umbrella body terms. He has also been a member of tions of increasing responsibility. for Kenya’s private sector and; as Union and the Uganda the Rotary and is a past president of These include Sales and Marketing a Trustee of the Kenya National Rugby Football Union the Rotary Club of Nairobi. Manager, Branch Manager, General Chamber of Commerce and Industry. Personal Mantra: “Work Hard, Manager, Managing Director and From 2015 to 2018, Amb. Awori in consecutive terms. Stay Focused and Whatever You Do, Chairman. chaired the Economics and Macro Keep It Simple’’
54 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 55 ANNIVESARY EDITION Top Lifetime Achiever
#4 Zarak J. Khan
EXECUTIVE CHAIRMAN AT DT DOBIE & COMPANY KENYA LTD
Zarak Khan started at DT Dobie in 1981 as an apprentice. He has demonstrated that hard work and further the Mercedes-Benz com- Zarak added that and clear determination are mercial line with an all new gen- the Company is on pre-requisites to realizing one’s eration Actros Prime Mover and a stable footing and well prepared for the ambitions. locally assembled and built buses. future of the Kenyan Zarak’s encountered a her- automotive Industry culean challenge when Nissan and he is confident rom humble beginnings he the top of the sales charts for over 8 announced they would be pull- that with the managed to travel to the UK years is one that Zarak will always ing out of all CFAO countries support of the CFAO Group the company where he studied automobile look back on with pride. “We have including DT Dobie in the year Zarak’s will grow to greater engineering. Upon his return, a special relationship with our truck 2013 after a buyout of CFAO by encountered heights. Fhe secured a job at DT Dobie start- customers, some of them are 3 gen- Japan’s TTC. The decision placed His strategy was to find the a herculean ing off as a workshop trainee, then as erations old and have been with a huge burden on Zarak and the challenge right VW models to fit our market Mechanic, then Service Supervisor, DT Dobie long before I even joined” company as DT Dobie had grown when Nissan and to kick start local assembly of then Assistant Field Service Sales Zarak says. and established the Nissan brand VW passenger cars, a first in Kenya Manager and then in 1992 he Zarak Khan has also been at the as a household name in the Kenyan announced after over 40 years. moved up to become the Sales and helm of ensuring that Mercedes-Benz automotive landscape for 50 years they would Zarak added that the Company Marketing Director and subsequent- passenger cars have been the leaders at the point. be pulling out is on a stable footing and well pre- ly Managing Director in 1997 a posi- of premier passenger cars on the “It wasn’t easy, Nissan was of all CFAO pared for the future of the Kenyan tion he held until 2017 before being Kenyan roads. DT Dobie proudly part of our DNA but we had to countries automotive Industry and he is con- appointed the Executive Chairman sells the entire Mercedes Benz pas- quickly shift gear and look for a including DT fident that with the support of the of DT Dobie. senger stable from the A- class to the replacement volume brand and Dobie in the CFAO Group the company will grow Zarak recalls, in 1997 DT Dobie G-Wagon. Volkswagen was it. I’m extremely year 2013 to greater heights. introduced the Mercedes-Benz He introduced the latest glad we took up the Volkswagen Zarak concluded by saying, “It Actros into the Kenyan market and Mercedes-Benz SUVs in addition to franchise as we were able to re-in- after a buyout hasn’t been an easy road, but resil- the rest as they say is history. While more traditional saloons, providing vent ourselves as a fresh brand of CFAO by ience and belief in what we sell, what it was not a walk in the park, getting solid and reliable mid-sized trucks with a new and interesting product Japan’s TTC we stand for and our heritage has the Mercedes-Benz prime mover to with the Hyundai light duty trucks portfolio” Zarak said. seen us survive.
56 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 57 ANNIVESARY EDITION Top Lifetime Achiever
#5 s a young man, I wanted to capacity as a businessman, I have study law, but as fate would travelled to around 75 countries. have it, I was enrolled for In the course of my travels, I have Kiprono Kittony Commerce at the University built a database of 10,000+ contacts Aof Nairobi. Dad told me, don’t worry, consisting of professionals, busi- you have always had the potential nesspersons, investors and govern- VICE CHAIR OF THE WORLD CHAMBERS FEDERATION to be a good businessman,” narrates ment officials. Networks help if you Kittony, who is the immediate past want to progress in any meaningful If you ask Kip how he became a leading figure in Kenyan National Chairman of the Kenya endeavour” he says. business circles, he will tell you it was by mistake. Kiprono National Chamber of Commerce and So, with all this on his plate, Kittony, the Vice Chair of the World Chambers Federation, always Industry (KNCCI), where he is cred- did he manage to study Law? Yes. wanted to study Law, despite his long and distinguished career ited with modernizing and restoring Kittony holds two degrees from the L-R: Mr. Kittony, the late Kofi Annan and Royal Media Services MD, Wachira Waruru, in talks in business today. the organization to its glory during University of Nairobi. Bachelor of involving media owners during the 2007-2008 Crisis his two terms as Chair (2012-2019). Commerce and Bachelor of Law. He “In my early days in business, also holds a Global Executive MBA luxury hotels his family operates in Highlights in Kittony’s life when the pull to study Law was very from USIU-A in conjunction with the area, live up to their reputation include: strong, I realized my dad was right; I Columbia University. for excellence. • Marketing Director East had the potential to be a good busi- He loves to spend his free time Kiprono Kittony was awarded Africa 1994 -1998 nessman. But I also learnt something with his family, both in Nairobi the Elder of the Order of the Burning • Founding Chairman of Radio else in those early days, something and at the farm in Kitale, where he Spear (EBS) by the President on Dec Africa Group, a leading media valuable that has served me to this grows and processes coffee, keeps 12 2019 for distinguished services house day. You can’t bank potential, you dairy cattle, a few horses and ensures to Kenya, in the field of business • Vice Chairman World have to work hard,” he says, adding Sirwo Resort and Cranes Haven, two leadership. Chambers Federation in Paris, that “hard work has played a huge where he represents Africa role in my journey, a bigger role than • Chairman of My Jobs in my knack for business.” Kiprono Kittony was awarded the Elder of the Order of Kenya, a leading jobs portal But what does hard work look the Burning Spear (EBS) by the President on Dec 12 2019 • CEO of Capital Realtime, one like for Kittony, whose friends fondly of the top 10 Safaricom deal- refer to as Kip? for distinguished services to Kenya, in the field of business erships It means being constantly curi- leadership. • Chairman of Mtech ous, putting in the effort to learn Communications, a leading and partnering with others where CITATION pan-African tech firm there is a knowledge or skills gap, • Chairman CreditInfo CRB he explains. To illustrate this, he Change management Kenya Limited points to his diverse business inter- • Chairman of Betway in ests, which have expanded over the Transformational Kenya leadership past three decades to cover media, • Director and Board Member technology, telecommunications, Business Process at Nairobi Securities Exchange agriculture and hospitality. Re-engineering (NSE) “I wear many hats, and this • Member of advisory coun- requires a real commitment in terms Corporate cil of IFHA (International of time and networks. You need to restructuring Fund for Health in Africa), an put time into building teams and Amsterdam based private equi- Industry leadership networks. You can’t do everything ty fund alone. Even Bill Gates has 24 hours Negotiation skills • Immediate Former a day and needs a team,” he quips. Chairman of the Media Owners Kittony loves to network. “As Entrepreneurship Association and the AAR Chair of the Chamber and in my Insurance.
58 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 59 ANNIVESARY EDITION Top Lifetime Achiever
ith media mogul SK Macharia, then media own- #6 ers association chairman Dr. Hanningtone Gaya, former AGW Prof. Githu Muigai and Senior Linus W. Gitahi Counsel SC Paul Muite, provided a con- ducive engagement environment that When he joined the media led to the enactment of the Media Act as the group CEO, OF Nation 2007, a most progressive Act that ush- Media Group (NMG), from ered in statutory media regulation, as the pharmaceuticals industry, opposed to media control. The Act facil- nobody expected Linus to blend itated a professionally constituted and in easily. This he did in record run Media Council, including the first Complaints Commission. Linus took time and would soon be striding over the chairmanship of the MOA in the corridors of power like a 2008 from Dr. Hanningtone Gaya and colossus, leading media CEOs built it to a phenomenon and powerful in numerous engagements industry lobby organization in Kenya As part of his personal social NMG, not one to involve in conflict ties exchange and operates in with the government then. His serving for two terms, before relinquish- responsibility, Linus started Baraka of interest. 4 countries, Kenya, Uganda, entry coincided with the era of ing the mantle to SK Macharia. Foundation that has to date educat- Linus was born in 1962. He holds Tanzania and Rwanda, with a Linus joined NMG after a success- ed over two hundred kids from poor a Diploma in Management from the Turnover of Usd 150 million infighting with the media when ful stint as the CEO of GSK in West families from form 1 to 4. For this, Kenya Institute of Management and profit of Usd 40 million. Parliament was desirous to enact Africa, a public liability company quot- Linus was feted with the Order of the (KIM), a BCom (Hons) degree in During his tenure here, grew the various acts to regulate the ed in the Lagos Stock Exchange. Before Moran of the Burning Spear (MBS) Accounting from the University of profits 3.5 times and the turn- media. then, Linus was commercial director in by President Mwai Kibaki in 2010. Nairobi, and an MBA degree from over slightly more than doubled. Near East looking after Cyprus, Jordan, Passionate about generating the USIU-A. He is a Fellow of KIM. Linus experience, skills and net- Lebanon and Syria. wealth and creating employment, Linus started his career at works have enabled him to serve in At NMG, Linus grew the profit Linus invested in Manufacturing GlaxoSmithKline (GSK) as a Brand the following capacities: 4 times during his two terms, having through Tropikal Brands Afrika, in Management trainee in 1989, rising • Chairman, Tropikal Brands taken over from the long serving Dr. communication through Oxygene through the ranks to group CEO of (Afrika) Wilfred Kiboro, the current chairman Marketing and in farming through West Africa. Other positions held at • Chairman, Diamond Trust and an Aga Khan Network and Service Sangare Gardens after leaving the GSK include: Bank insider. • Marketing Director East • Chairman, Oxygene Africa 1994 -1998 Marketing Communications • Marketing Director Africa- • Chairman, Msingi Foundation, As part of his personal London 1998-2000 an Organization dedicated to social responsibility, • Commercial Director Near catalyzing industrialization in Linus started Baraka East –Cyprus 2001-2001 East Africa • General Manager East Africa • Chairman, Zenufa Foundation that has and Indian Ocean Islands – Pharmaceuticals in TANZANIA. to date educated over Nairobi 2001-2003 • Board Member, Brand Kenya two hundred kids from • CEO West Africa 2003 -2006. • Board Member, Simba Corp • Nation Media Group 2006 • Board Member Allianz poor families from -2015 - Group CEO - 9 years. Insurance form 1 to 4 NMG is a public company • Board Member Kenya quoted in the Nairobi securi- Association of Manufacturers
60 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 61 ANNIVESARY EDITION Top Lifetime Achiever
#7 Dr S K Macharia MEDIA MOGUL He applied for the Kennedy Airlifts and was accepted in the 1962 group. His family could not however raise the 4,000 shillings required for the plane ticket to the United States. ‑He could only raise 1,200 shil- lings and had to travel for nearly 2 months by road from Kenya to Benghazi, Libya, where he took a ship to England and then a flight to the USA. On arrival, he enrolled in Seattle Technical College and complet- ed his high school education two According to years later. Macharia would later recent Kenya earn a Bachelor of Arts degree in Audience Political Science from Seattle Pacific University and a Bachelor of Science Research degree in Accounting from the Foundation University of Washington. (KARF), Citizen He would then complete a Master TV had a of Science in Accounting/Finance, a saved and worked on turning around ket in 2016. Royal Media Services 62.5% share Master of Arts in Accounting and the corporation. radio stations have a combined audi- of the Kenyan is certified as a Certified Public In 1979, Macharia left the ence of 80% of Kenya’s population television market Accountant (CPA) in Kenya. Public Service to run Madhupaper with the main radio station Radio in 2016. Royal Macharia returned to Kenya International, a tissue production Citizen has a 43% market share. in 1969 and was employed as a company he had started three years Other brands in the Royal Media Samuel Kamau Macharia, also known as SK, is the founder Media Services Provincial Local Government earlier. Services stable include Inooro TV, and chairman of Royal Media Services (RMS), the largest radio stations Finance Officer (Supernumerary) in By 1985, Madhupaper had 300 Ramogi FM, Inooro FM, Musyi FM, private radio and television network in Eastern Africa. RMS have a combined the Ministry of Local Government. employees and its main product Chamgei FM, Muuga FM, Egesa FM, flagship outlets are Citizen TV and Radio Citizen audience of He later worked with Industrial Rosy remains a household brand. Bahari FM, Mulembe FM, Wimwaro 80% of Kenya’s and Commercial Development Madhupaper was the only tissue FM, Sulwe FM, Hot 96 and Vuuka population with Corporation (ICDC) and Kenya manufacturer in Kenya at the time, FM. K was born in 1942 in Ndakaini, Muranga County. the main radio Industrial Estates (KIE). before being placed under receiver- In addition to the media indus- In 2012, he was listed among the top 10 to watch station Radio In 1973, he was appointed as ship, an action that remains in the try, Macharia business interests by Forbes magazine of African millionaires to watch. head of a taskforce that was charged courts to date. include investments in agriculture, Macharia was on the 2013 Africa Report of the 50 most Citizen has a with auditing and eventually liqui- According to recent Kenya transport, real estate, insurance and Sinfluential Africans and was honoured with the 2015 Eastern 43% market dating the Agricultural Development Audience Research Foundation banking, among others. Macharia Africa Ernst and Young Entrepreneur Lifetime Achievement share Corporation. He however convinced (KARF), Citizen TV had a 62.5% hold an honorary Doctorate degree Award. the authorities that ADC could be share of the Kenyan television mar- from the University of Nairobi.
62 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 63 ANNIVESARY EDITION Top Lifetime Achiever
Vimal Shah is the Chairman idco was founded in 1985 Association of Manufacturers #8 of Bidco Africa, East Africa’s by Vimal Shah, his father (KAM), East African Business leading manufacturer of Bhimji Depar Shah and his Council (EABC) and the Mkenya brother Tarun Shah. Under Daima Initiative which fosters peace- edible oils and hygiene and Bhis leadership, Bidco has received ful coexistence for economic growth Dr. Vimal Shah personal care products, and numerous awards and accolades in and prosperity in Kenya. most recently set foot in the the energy management, business For these and many other CHAIRMAN - BIDCO AFRICA food and beverages sector – leadership, ICT, manufacturing and efforts and contributions, Vimal has launching its noodles, juices sustainability categories. He led received numerous awards including and carbonated soft drinks Bidco’s strategic growth and expan- the First-Class Chief of the Order of sion which saw entry into Uganda, the Burning Spear (CBS) in 2011 brands into the market, all Tanzania and Madagascar with by former president Mwai Kibaki, set in a world-class industrial manufacturing units to serve the which is the highest national honour park officially commissioned markets. for a civilian outside government. in 2019. Currently, Bidco has Vimal holds a BSc. Degree in Dr. Vimal has, most recent- over 55 brands and a footprint international business administra- ly, been presented with the Fastest in 18 African countries. tion from United States International Growing Business of the Year award University – Africa. during the Jain Diaspora Business Currently, Dr. Vimal Shah is a Achievement Awards in association much sought-after speaker and men- with KPMG held in London. He tor, both locally and globally, on won this for his sustained com- Entrepreneurship, Leadership and mitment to fostering a rapid cul- Manufacturing. ture of development in agriculture, In his years of Leadership, Vimal floriculture, ICT and outsourcing has held many offices. He has sat that helped Bidco see and explore in the 3 GF (Global Green Growth the connection between Success and Fund) Advisory Board. Vimal is Performance. a past chairman of a number of In 2016, Vimal Shah was business lobby groups and asso- installed as the Chancellor for ciations, including Kenya Private Jaramogi Oginga Odinga University Sector Alliance (KEPSA), Kenya of Science and Technology. Vimal is a firm believer of the huge economic potential and future Dr. Vimal has been of Africa. He is passionate about presented with the Entrepreneurship and the conviction Fastest Growing that it is the pillar to move an eco- nomic Africa forward. He believes in Business of the Year inspiring the start-ups that makes award during the Jain him a mentor and supporter of mul- Diaspora Business tiple Founders’ initiatives. He is one of the strongest drivers Achievement Awards in of the Vision of Bidco Africa: To grab, association with KPMG grow and sustain the number one held in London market share in African markets by 2030.
64 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 65 ANNIVESARY EDITION Top Lifetime Achiever
r. James Njuguna Mwangi Bank has a branch. the banking industry and a player was born in Kangema, in Business Africa Editor Anver in the global business leadership Muranga County of Kenya Versi profiles Dr. Mwangi in 2012, as arena. in 1962. Dr. Mwangi is a one of world’s business leaders, who Dr Mwangi holds five honorary Dcareer accountant, banking and real has won the most coveted awards doctorate degrees in recognition of #9 estate mogul, businessman and phi- for business leaders, including the his contributions to the banking lanthropist extra ordinary. He is the Ernst & Young World Entrepreneur industry and being a champion of current Group managing director of the Year Award. Anver depicts Dr. financial inclusion for the initially Dr James Mwangi and Group chief executive officer Mwangi’s journey’s as a story that unbanked millions in Africa. He of the Equity Group Holdings PLC, is both fascinating and inspiring on holds a Bachelor of Commerce the banking conglomerate with the account of triumph against severe degree and is a Certified Public Dr. Mwangi was included among largest customer base on the African odds. Accountant. The Financial Times’ 2009 list of continent, in excess of 12.4 million Kenya Citizen TV adds that Dr. Dr. Mwangi has been feted on the top 50 thought leaders of as of June 2018. Mwangi is a man who from very three occasions with Presidential emerging markets, and among the Dr. Mwangi was included among humble and very difficult childhood awards: The First-Class Chief of top 20 most influential people in The Financial Times’ 2009 list of the rose to become a respected name in the Order of the Burning Spear Africa. Not new to being fetted, Dr. top 50 thought leaders of emerging (CBS), the Moran of the Burning markets, and among the top 20 most Spear (MBS) and Head of State Mwangi was awarded the 2012 influential people in Africa. Not new Commendation (HSC). Ernst &Young World Entrepreneur to being fetted, Dr. Mwangi was He has been named the Forbes of the Year award awarded the 2012 Ernst &Young Africa Person of the Year in 2012 World Entrepreneur of the Year and is a holder of the 2007 Global award. Vision Award. He was also recog- According to diverse media nized as the 2015 Ai40 CEO of reports, Dr. Mwangi is an astute the year at the 8th Annual Africa businessman best known for his Investor (Ai) CEO Investment efforts in shepherding the Equity Summit held in New York. He Bank Group from a technically was named the Banker of the Year insolvent building society in 2004, during the 4th Banker Africa - East to one of the largest and most profit- Africa Awards 2017. able companies in Kenya. Dr. James Mwangi serves on sev- Dr. Mwangi also serves as eral international bodies as an advi- Chairman of the Equity Group sor and has recently been appointed Foundation, the social impact Dr. Mwangi is a man to the Nairobi Advisory Board of investment arm of the Equity Bank who from very humble Columbia Global Centres. He is a Holdings Group PLC which is the Board member of the Economic CSR arm of the Equity Group, and very difficult Advisory Board of the International best known for awarding schol- childhood rose to Finance Corporation (IFC), the arships to top students from all become a respected Africa Leadership Academy in over Kenya. The most notable is South Africa, the Global Alliance the Wings to Fly scholarships that name in the banking for Food Security and Nutrition are given to top performing pupils industry and a player among others and is the Chancellor in the Kenya Certificate of Primary in the global business of Meru University of Science and Education(KCPE) and who are eco- Technology. He was for more than nomically and socially marginalized, leadership arena two terms the Chairman of Kenya’s from every district where Equity Vision 2030 Delivery Board.
66 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 67 ANNIVESARY EDITION Top Lifetime Achiever
Darshan Chandaria is the Group CEO and a Director of #10 Chandaria Group. He holds an undergraduate Business Darshan Management degree from Cardiff University and is a Fellow of the 2017 Senior Chandaria Executive Program from Harvard Business School. In 2018, he was the youngest ever East African recipient of an Honorary Doctorate from United Graduate College & Seminary International, USA
ver the past 10 years, mentor for many entrepreneurs, Darshan has built both start-ups and upscale, Chandaria Group into including businesses owned by one of the largest and indigenous Kenyans. Omost diversified business groups He particularly supports the in Africa. Today, the group’s oper- scaling up of MSMEs, including ations include Tissue Paper & facilitating their access to capi- Hygiene Products Manufacturing, tal and credit. This interest led Real Estate, Venture Capital, to the formation in 2017 of the Insurance, Banking, Automobile Chandaria Capital, the profession- Manufacturing, Mining, Flexible al early stage investment arm of Packaging and Solar Energy Chandaria Group. Generation, with over 3,000 In Kenya, Chandaria Group employees in Kenya, Tanzania, portfolio of companies includes Uganda, India, UAE and the Mobius Motors, Sokowatch, United Kingdom. Kobo360, Koko Networks, Ilara Darshan is an accomplished Health, and Safi Analytics.
68 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 69 ANNIVESARY EDITION Top Lifetime Achiever
CITATION
Leveraging of technology
To this end, Darshan towards winning the Oshwal Mentorship has an impressive list of Kenyan, Business of the Year Award 2018 ECONOMY BUSINESS MSMES up-scaling African and International awards – Large size company category, and recognitions. These include: for the second time in a row at the Local Manufacturing • Darshan has been invited by Oshwal Awards 2018. 2 x 23kgs 2 x 32kgs Sony Entertainment International • Under his leadership Financial inclusion and KCB Bank for 4 consecutive Chandaria Industries successfully years (2016, 2017, 2018 & 2019), secured 1st Runner-Up, Best East to be a Lion in the Lions’ Den African Company of the Year 2018 at the Mandela Gandhi Youth business show in Kenya, which – Manufacturing Sector and 2nd Summit in Pietermaritzburg, is Kenya’s equivalent of Dragons’ Runner-Up, EABC Chairman’s South Africa. Den/Shark Tank. Award for Overall Best Regional • Awarded Young Business • Overall winner in the list of Company of the Year 2018 at Leader of the Year 2016 for EAST the 100 Most Influential Young the EABC Business Excellence AFRICA & ALL OF AFRICA Kenyans 2018 by Avance Media. Awards 2018. Business Leaders Awards by • Asian Weekly’s award for • Nominated for Young CEO CNBC & Forbes Africa, the most the Best Business Icon (Male) in of the Year for 2 consecutive years prestigious recognition in Africa. 2014, 2016 & 2019. 2017 & 2018 at the Africa CEO Country Winner (Kenya) and • Board Member of the World Forum Awards in Geneva. Regional Winner (East Africa) in Wide Fund for Nature, Kenya • In 2017, appointed to the the Manufacturing & Engineering (WWF – Kenya) in 2019. United Nations Youth Association sector at the CEO Global Titans • In recognition of his busi- Advisory Board for business lead- 2017 Awards for the Most ness and brand building leader- ership and youth development Influential Leaders in Africa. ship excellence, he was invited excellence. • Listed in the Business to join the Superbrands Kenya • Received a special invite Daily’s Top 40 Under 40 Men’s Council in 2018. from the government of India in list for 3 consecutive years (2014, • Led Chandaria Industries the year 2018 to be a panelist 2015 & 2016).
70 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020
SAA0119_6240_KenyaMonthlySpecials_270x210_Amend1.indd 1 2019/01/23 14:40 ANNIVESARY EDITION CEO of the Month
Andrew Mutuma MANAGING DIRECTOR, DHL EXPRESS KENYA
72 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 73 GOVERNANCE News Feature Understanding the economic cost of corruption in Kenya This poor BY ODONGO KODONGO paying a company called Goldenberg the use of that money for national showing International 35% more in Kenyan stand, Kenya is already struggling to development. Associate professor, University of the shillings than their foreign currency pay its debts. The Global Financial Integrity shouldn’t come Witwatersrand earnings. report estimates that from 2005 to as a surprise. More recently, in 2014 millions The economic cost of corruption 2014 Africa lost between USD$36 Kenya has enya is perceived as one of of dollars were misappropriated The role of human capital on eco- billion and USD$69 billion in illic- been plagued the world’s most corrupt from funds that were secured by the nomic growth has long been estab- it financial flows. This represents by a long list countries. It ranked 143 government through a Eurobond, lished. So, when human capital takes about 74% of all financing required of corruption out of 180 countries on which is an international loan that a hit the impact is also felt on eco- (approximately USD$93 billion per TransparencyK International’s 2017 was secured from foreign investors. nomic development and growth. year) to develop infrastructure to scandals corruption perception index. The A second Eurobond was secured in Let’s take Kenya’s National service Africa’s growth needs. One of the more only African countries that scored 2018 and questions have been raised Youth Service as an example of a In Kenya’s case, the Eurobond infamous was the worse – among them Somalia, South here as well. public organisation where corrup- swindle was more than just a missed Goldenberg heist Sudan, Libya, Eritrea, Burundi, and Yet, the looting of public coffers tion is believed to be rife. In 2015, opportunity to expand the country’s which occurred in Zimbabwe – were either politically is more commonly reported in recent approximately USD$17 million was inadequate and dilapidated infra- the 1990s during unstable or in conflict. times and the amounts involved are stolen from its coffers by a network structure. It also led to a sovereign This poor showing shouldn’t growing. During May and June 2018, of companies that supplied goods rating downgrade on the basis of then President come as a surprise. Kenya has reports about grand corruption have and service at inflated prices. its increasing inability to service Daniel Moi’s been plagued by a long list of cor- dominated Kenyan news. This hae- And this year billions of shil- ballooning public debt. tenure ruption scandals. One of the more morrhaging of public funds will do lings earmarked for the service were A sovereign rating is a mea- infamous was the Goldenberg heist enormous damage to the country’s embezzled by a shadowy network of sure of a country’s creditworthiness. which occurred in the 1990s during already struggling economy. dubious service providers. And a downgrade signals that the then President Daniel Moi’s ten- The scourge of corruption in This money was all earmarked country has not optimally invested ure. The government was found to Kenya must be urgently addressed for youth vocational training. The money borrowed on capital proj- have subsidised exports of gold far otherwise it could be bringing the theft not only jeopardises the coun- ects, such as infrastructure. Capital beyond standard arrangements by economy to its knees. As things try’s short-term skills provision projects typically increase national objectives: it also portends irredeem- income and better a country’s ability able long-term opportunity costs. to repay its debts. commission prosecutorial powers. would then be barred from holding Corruption compromises peo- Third, the law could be reviewed public office or doing business for ple’s futures and their development. Finding solutions to ensure that those convicted of eco- several years after their release. It also costs a fortune. Rampant Given these observations, what nomic crimes suffer lasting embar- Fourth, strict standards of ethical corruption will drain any economy measures can Kenya take to stem rassment and the greatest possible conduct could be imposed for any- of the resources needed for projects the debilitating theft of public financial loss. To achieve this, all the one seeking public office. This would like infrastructure development. resources?First, a national ethos proceeds from corruption must be entail full disclosure on the sources To illustrate, let’s take a look at that inculcates the value of work as repossessed by the state and chan- of campaign funds, public declara- the misuse of funds from the Kenya the only means to wealth accumula- nelled back to public use. Convicts tions of wealth and lifestyle audits, government’s 2014 Eurobond, which tion must be built. A possible way of and enforcement of voter bribery was believed to be Africa’s largest achieving this is for education policy legislation. such issuance at the time. makers to emphasise social ethics Fifth, the national fight against Reports indicate that some of the as a compulsory subject right from Kenya’s legal poverty, ignorance and disease must money may not have been deposited primary school all the way up to the system must make be intensified to improve quality of into the national Treasury. In eco- university. corruption expensive life, and empower citizens to perform nomic parlance, this would qualify Second, Kenya’s legal system their civic duties, such as the choice as an illicit financial “outflow”: an must make corruption expensive and unattractive for of legislative representatives, in a illegal cross-border movement of and unattractive for perpetrators perpetrators by the more meaningful way. money or capital. The illegal transfer by the imposition of stiff fines, and imposition of stiff fines, Finally, it would be worthwhile of funds out of African countries mandatory jail sentences. Another for the national public prosecutor is a recognised constraint on the step in the right direction would be and mandatory jail to sign treaties with “tax haven” continent’s economic development to grant both the auditor general sentences countries to block or repatriate illicit because it denies local populations and the ethics and anti-corruption financial outflows from Kenya.
74 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 75 GOVERNANCE News Feature
Nairobi’s slum residents pay a access to amenities. For instance, compared to 84% in the formal settlements, only 36% of households high price for low quality services in informal settlements have access to in-house or in-compound piped About 56% of Kenya’s urban population currently lives in policies are including all groups in the drinking water. slums. Nairobi even hosts one of the largest slums in Africa, development of the city. It’s vital that The study also revealed that Kibera. policymakers try to close these living households in the slums are getting quality gaps as much as possible. a bad “price deal” for the “product the living conditions experienced quality” of their rental housing. DEBABRATA TALUKDAR by Nairobi’s slum residents and Low quality I also found that slum area ten- Professor, University at Buffalo, The compared them to those in formal For my study, I used World Bank data ants are paying on average about State University of New York settlements. Specifically, it was to from a survey of over 1,000 urban 16% in higher rent than their for- understand how worse-off they are households across Nairobi’s formal I analysed a dozen mal area counterparts. This means n Kenya, settlements are classi- when it comes to basic amenities and informal settlements. indicators for tenants in Nairobi’s informal set- fied into two types: informal (or, and whether the rent and costs that I analysed a dozen indicators for housing-related tlements aren’t just experiencing a slum) and formal (or, regular) slum dwellers face are at least com- housing-related living conditions. living conditions. significant lower quality of housing These related to the settlements. Informal settlements mensurate with the poor quality of These related to the physical structure physical structure of and related basic amenities relative areI areas with insecure residential amenities. of houses (for example the number of houses (for example to their counterparts in formal set- status and those in Nairobi are quite I found that tenants in Nairobi’s rooms), in-house basic amenities (like the number of tlements, but they are also paying dismal. They’re very overcrowded, slums are getting a very bad price water), neighbourhood basic ameni- rooms), in-house a higher price or rent premium for housing is made of poor-quality deal for the quality of living. This is ties (such as garbage collection), and basic amenities such quality. (like water), building materials – like mud or because there’s a huge demand for whether they have formal rental con- neighbourhood basic metal sheets – and they often lack low-cost housing, and not enough tracts. amenities (such as Premium prices outstrips the supply for affordable What can be done? basic amenities like drinking water, to meet it. Not surprisingly, I found signif- garbage collection), To understand the rental disparity, I housing units. Kenya currently has While none of these are a magic bul- electricity and sewage disposal. These findings are important icant disparities between the formal and whether they used a technique designed to study an overall housing deficit of over two let, they offer steps towards address- My recent study examined when it comes to evaluating whether and informal settlements in terms of have formal rental mean outcome differences between million units. ing the quality of life of Nairobi’s contracts. groups, such as analysing wage gaps As more households move into residents. by sex or race. I used it to deter- Nairobi’s slum areas, they wrangle First, policy initiatives must be mine what rents would be paid for to get cheaper houses, even if the put into place that incentivise slum the same quality housing unit if it supply is stagnant, because of their tenants and landlords to improve the was situated in Nairobi’s formal proximity to workplaces. quality of the existing housing stock. settlements versus its informal set- It doesn’t help that there is little This includes formalising property tlements. competition among a few political- ownership – so the landlord feels The method enabled me to esti- ly well-connected slum landlords, more secure that they won’t lose the mate whether the rent paid for the which means there’s less incentive property once they’ve worked on same quality housing unit was more to reduce prices, and normal com- it – and tenancy rights which would or less in informal settlements than petitive market forces are less likely compel landlords to provide a cer- in formal settlements. I was therefore to play out. tain standard of living. able to estimate whether the rent My study’s finding of slum-pre- Second, policy initiatives must paid for the same quality housing mium in Nairobi’s rental housing be rolled out that expand existing unit was more or less in informal set- market is akin to the evidence that housing stock with better quality, tlements than in formal settlements. poor people pay more for basic and also provide affordable, new So, what causes the difference? services in many situations. For housing units. The Kenyan govern- I believe it isn’t just a reflection instance, studies suggest that resi- ment is already taking steps towards of extortion by slum-landlords, but dents of poor neighbourhoods in US this, and this will unleash competi- rather distortions in market out- cities often experience higher market tive market forces that bring down comes. prices for lower, or same quality rents, or at least improve the quality There’s a huge demand for cheap products – like groceries – because in the existing rental housing mar- accommodation in Nairobi which far they have to travel further for them. kets.
76 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 77 SOCIETY Feature
While most punishment in these Teresa. In a land of Mother Teresas, at the best co-operators. studies is directed at unco-operative a normal person seems like Scrooge. Our experimental condition was Why we sometimes hate the good guy group members, approximately 20 When faced with a Mother the same as the control condition, per cent of all punishment is directed Teresa, how can a normal person except that an additional participant at the most co-operative group mem- compete? One option is to step up was an observer who could see how Why would anyone punish or bers. Furthermore, while the rates of one’s game and actively compete much everyone donated to the public criticize someone for being antisocial punishment vary, it has to be more generous (“competitive good. The observer could choose one good? This seems puzzling, been found in every society where it altruism”). A second option is to person as a partner for a subsequent because it brings down group has been investigated. Researchers bring the best co-operators down, co-operative task, which prompted co-operation. However, it is no are at a loss to explain why antiso- Scrooge-like, via do-gooder deroga- everyone in the group to appear anomaly. cial punishment exists. tion and antisocial punishment. more co-operative than others. We hypothesized that when there “You’re making me look bad!” Or are you a Scrooge? was this competition to be chosen Our research suggests a simple rea- This manifests as suppressing as a partner, there would be more BY PAT BARCLAY son why we sometimes hate the someone’s co-operation or work punishment of the top co-operators, Associate Professor of Psychology, good guy: They make us look bad by ethic, inferring ulterior motives for because that’s when social compari- University of Guelph comparison. Many of us have heard altruistic actions, implying real or sons are more important. of people saying: “Stop working so imagined hypocrisy (“He’s a vege- Our results unambiguously sup- veryone is supposed to cheer hard, you’re making the rest of us tarian, but wears leather shoes!”), ported our hypothesis: There was for good guys. We’re sup- look bad.” attacking them on unrelated dimen- five times as much punishment of posed to honour heroes, Are you a Mother Teresa? This sions or outright punishing them. the good co-operators when people saints and anyone who helps is the same phenomenon: When one We recently ran an experiment competed to be chosen compared to others,E and we should only punish person looks really good, others look to test whether competition to look the absence of such a competition. the bad guys. And that’s what we bad by comparison. They then have good is what drives antisocial pun- Furthermore, this antisocial pun- actually do, right? an incentive in stopping that person ishment. Our participants were ishment was effective at suppressing Well, sometimes. from looking good, especially if they assigned to either a control condi- the good co-operators, thus prevent- Most of the time, we do indeed can’t (or won’t) compete. tion or to an experimental condi- ing the good co-operators from mak- reward co-operators. We also often Just like every other trait, gen- tion where they had an incentive to ing the bad co-operators look bad. In punish unco-operative people who erosity is relative. Someone is only appear more generous than others. other words, antisocial punishment harm others, who aren’t good team deemed good or generous based on worked. players or who freeload on the hard how they compare to others. In a Suppressing the good work of others. But sometimes the land of Scrooges, a normal person In our control condition, par- Why does it matter? good guys also get punished or crit- seems like ticipants played an economic game Critics often attack the motives of icized, specifically because they are Mother known as a “public goods game,” people who protect the environment, so good. where they could donate money to a seek social justice, donate money Why would anyone punish or “public good” which benefited every- or work too hard in organizations. criticize someone for being good? one, or keep the money for them- Such good deeds are dismissed as This seems puzzling, because it selves. We then let participants pay naïve, hypocritical (“champagne lib- brings down group co-operation. to punish others, and we calculated erals”) or as mere “virtue signalling” However, it is no anomaly. how much punishment was targeted by those who do not perform those This punishment of good co-op- deeds. If left unchecked, this crit- erators has been discovered in mul- icism may ultimately reduce how tiple fields, including experimental Critics often attack often people do good deeds. economics, social psychology and Our research helps us recognize anthropology, where it is various- the motives of these attacks for what they are: A ly called “antisocial punishment” or people who protect competitive social strategy, used by “do-gooder derogation.” the environment, seek low co-operators, to bring others Co-operation and punishment down and stop them from looking are often studied using economic social justice, donate better than they do. games with real money, where people money or work too By identifying this strategy and can either co-operate or be selfish, hard in organizations calling it out, we can make it less and can pay to “punish” others for effective, and thus allow good deeds their actions. to truly go unpunished.
78 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 79 GOVERNANCE Sector Review
A horse named Virtue Paradox of Generosity: Giving We will not perform properly if one of In music, virtue might be described Receive, Grasping We Lose, argue: the tires is running low on air or is like it is in Beethoven’s “Ode to Joy” “Generosity is paradoxical. By giv- flat. You can probably still drive the Is it good for you to be good? as heavenly, and could be general- ing ourselves away, we ourselves car, but it doesn’t work very well. ized as excellence. Physically, a horse move toward flourishing.” When a vehicle is in good con- that is healthy and flawless might be They also note: “By grasping dition and has integrity, it performs considered an excellent (virtuous) onto what we currently have, we lose effectively. Jensen argues, similarly, specimen of a horse. out on better goods that we might that when people within an organiza- The ancient Chinese also held have gained.” tion act with integrity, the organiza- a similar expansive view of virtue. With respect to gratitude, tion will perform much better. They believed that the more virtuous U.S. psychology professor Robert Ethics, not greed, boost profits. a person was, the more physically Emmons has studied its impact He provides the example of imple- healthy they were. It could be seen on happiness and well-being and menting integrity in his firm the in the quality of their eyes and skin, discovered that there is a positive Social Science Research Network and there were other positive con- relationship between gratitude and and experiencing increased output sequences. A virtuous person would happiness. The more grateful we of 300 per cent with no increase in live a healthy long life, the Chinese are, the happier we are. costs. Jensen argues that the believed. These are matters of interpersonal interactions If we think of human virtue as interpersonal affairs, of business people is a not limited to moral matters but also but even in busi- factor of productivity, to physical, emotional and mental ness there is an just as effective uti- matters, then it’s possible to under- argument that lization of capital stand how being virtuous might be integrity pro- and labour are good for you. duces positive necessary for the payback for success of any Physical health as virtue individuals company. Take physically. We all know what and firms. Jensen it takes to be physically healthy: Michael argues that integ- Good diet, exercise, adequate sleep, Jensen of rity is not just an etc. One could say that when we do Harvard Business option — it’s a nec- these things, we are being physically School defines essary condition for virtuous, and we attain the virtue of integrity as: “A state performance. These are good health. or condition of being not unusual or unfamiliar The ancient Greeks had BY THOMAS CULHAM good for others, right? Similarly, from an emotional per- whole, complete, unbroken, ideas. We all have experiences the view that virtue Well, yes … and maybe no. spective, we know that having a pos- unimpaired, sound, in perfect con- with companies that we know we Visiting Lecturer, Beedie School of Maybe it’s good not just for others, itive social network, avoiding toxic dition.” It’s essential to ensure opti- can trust, and those we don’t. It’s not was broader than our Business, Simon Fraser University, but for me too. It’s easy to see how people and having a positive state mal performance. There are clear difficult to imagine that trustworthy current understanding of Simon Fraser University following the rules of the road is of mind by avoiding ruminating on parallels between Jensen’s notion companies will enjoy customer loyal- morality. They believed good for you. But what about other anxious negative thoughts are ways of integrity and the ancient Greek ty, repeat business and likely better virtue could be seen hen I was very young, subtler virtues, like being polite, in which we can practise being emo- notion of virtue as a kind of excel- Jensen financial performance. five or six, my parents empathetic, generous, grateful, hon Is it good for Tommy to be good? in any object, or in the - tionally virtuous. lence. argues, behaviour of people, always told me: “Tommy, est and even altruistic? These examples illustrate that From a human perspective, As a child, I thought being good was be good.” But all I want- The ancient Greeks had the view engaging in virtuous physical and Jensen also defines integrity as similarly, that for the benefit of others and it really as the expression of Wed to do was run in the woods, play that virtue was broader than our emotional activities is good for you. “keeping one’s word,” meaning, in when people wasn’t all that necessary. But I am excellence or perfection in puddles, eat fast, swim and have current understanding of morality. OK, so what about higher-level simple terms, doing what we say within an learning at many levels that the vir- fun. I didn’t have time for manners. They believed virtue could be seen virtues such as generosity, gratitude we’ll do and if unable to follow organization tues that contribute to good physical, Being good seemed always to benefit in any object, or in the behaviour of and integrity? While there may not through as promised, then taking act with emotional, mental and interpersonal someone else, not me. Why do I have people, as the expression of excel- be a sculpture dedicated to you and action to repair the damage or prob- integrity, the health, defined as morals, are good to follow rules, not cut in line, say lence or perfection. For example, your good deeds, being good is, in lems caused. organization for me too. pleasant things to others when all I they felt one could hear virtue in fact, good for you. But one aside: If I am generous to will perform feel like doing is telling them off. It’s music or see it in a horse. Considering generosi- Integrity leads to better you and expect something in return, ty, Christian Smith and Hilary performance much better. this is not virtue. It’s a business Davidson, authors of the book The We understand that an automobile exchange.
80 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 81 STRATEGY Feature
icant shift in companies’ tolerance which have in turn reduced the need for failure in the quest for better for tellers or for banks to manage That CEOs are now more focused products and services in a culture their own ATMs and deposit-taking. CEOs must face uncertainty on building resilience in their orga- that traditionally emphasized getting This is also happening against nizations, rather than looking for it right the first time. Like Einstein, the backdrop of shortening tenures and tackle it head-on new ways to grow profits, sends a who once observed that he learnt for CEOs. According to the report, strong message about the state of the over a thousand ways in which a the average tenure of a CEO now economy considering that as a club, light bulb does not work, CEOs is five years. This has the effect By NG’ANG’A MBUGUA That CEOs are now more focused CEOs are generally more optimistic are willing to allow experimenta- of reducing incentives for CEOs to on building resilience in their in their outlook compared to other tion. But, for this to succeed, top adopt long-term strategies since they segments of the economy, say the executives ought to loosen the purse are more often than not judged by organizations, rather than looking EOs, when they speak as working class and the self-employed. strings and strengthen their research the results they achieve in the short- for new ways to grow profits, a club, hold up a mirror Slow growth, however, is not the and development (R&D) depart- and medium terms as companies sends a strong message about the through which a country only challenge that the CEOs have to ments where they already exist. And worry more about whether 10 years state of the economy considering can closely examine its eco- grapple with. In his foreword to the where they do not, the question hence, they will be doing the same that as a club, CEOs are generally Cnomic outlook. So, when they say, latest report, Josphat Mwaura, CEO should be about when they will be things they are now. It also means more optimistic in their outlook as they did in the KPMG report and Senior Partner of KPMG East set up, not whether. that top executives have a shorter released last week, that they expect Africa, observes that 62 per cent The second step that they need time to achieve their legacies and compared to other segments of their companies to grow by only two of CEOs now consider it critically to take is to equip their core teams, groom their successors. the economy, say the working class per cent over the next three years, important to improve their innova- as well as their staff generally, with The report, for which 1,300 and the self-employed this should make policy makers and tion processes, a steep jump from the skills that will position them to CEOs were interviewed globally, also the government sit up and take only 20 per cent the previous year. face disruption head-on and find observes that chief executives now notice. This underlies the disruption new ways to survive the turbulence. have to be involved in areas that that traditional businesses are expe- Although this is a reality that a were not their province only a few riencing, making it all the harder significant numbers of the CEOs years ago for the chief executives to steer their are already alive to, in East Africa, Of those interviewed in East organizations in the face of the head- there are not many enough who see Africa, 66 per cent said they were winds. the need to respond with speed to responsible for connecting the front, “In this year’s findings, we see emerging challenges. middle and back offices in a way that that to be a CEO today is not According to the KPMG report, their predecessors were not. This is a what it was yesterday,” Mr. Mwaura only 46 per cent of those inter- significant proportion and points to observes. “There have been signifi- viewed in East Africa said that act- the ever-changing role of CEOs in the cant changes in the breadth of their ing with agility “is the new currency dynamic work environment. responsibilities (and) the skills they of business” compared to 67 per What do all these trends mean therefore need.” cent globally. Worse, only eight per for the future of the corner offices? Despite these daunting challeng- cent of executives in the region are First, the CEOs have to achieve more es, there is a silver lining in the dark already using Artificial Intelligence not see the need to train workers with less. Secondly, they must con- clouds, with CEOs in East Africa (AI) in the automation of their pro- that they might not be needing in a stantly redefine their role. And third, saying that they view disruption cesses, yet global experience has few years. This is especially stark in they must be constantly alive to the as an opportunity rather than a demonstrated the capabilities of AI Kenya’s banking sector where banks changing market dynamics and the challenge and a significant num- to cut costs, improve processes and have invested heavily in automation fact that customers are increasingly ber saying that they are seeking to deploy targeted responses to cus- and business process outsourcing, looking to patronize the businesses disrupt their own industries rather tomer needs. whose outlook mirrors their own. than sit on their hands and wait to It is also worrying that only That is why, issues like sustainability be disrupted. four per cent of regional CEOs have The report, for which 1,300 and shared values are important for According to the KPMG report any plans to ensure that more than CEOs were interviewed globally, CEOs. titled “Agile or Irrelevant: Redefining half of their employees are trained also observes that chief executives As the report says: “CEOs must Resilience”, 58 per cent of the chief to enhance their digital capabilities face uncertainty and tackle it head- executives surveyed in the region against a global average of 44 per now have to be involved in areas on.” said they were willing to allow mis- cent. that were not their province only takes to be made in the pursuit of This could be a pointer that a few years ago Mbugua is the Managing Editor innovation. This represents a signif- CEOs are already hedging their risks, of the Business Daily. jmbugua@ ke.nationmedia.com. This article was but it could also mean that they do first published in the Business Daily.
82 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 83 STRATEGY Feature
dent state. Emphasis was on subjects and services to a “consumer”: the tenure, are poorly paid, teach exces- The power of the purse threatens academic that enhanced national development. fee-paying student. sively large classes, and do not take This included agriculture, engineer- Academic staff have less power part in university governance. This ing, medicine, and government. when it comes to making decisions makes them more compliant with freedom in Kenya’s universities Subjects that encourage critical lib- on curricula and teaching. These university and student demands on eral thought – like literature, history, decisions are now driven by stu- teaching and grading practices than sociology – were considered less cru- dents want, rather than teaching academics with tenure. In universities, academic freedom is desirable because their cial for development. needs and university requirements. Many also teach in multiple uni- work is to search for truth, transmit knowledge and, often, Academic freedom was threat- For instance, universities now offer versities which can compromise their speak truth to power. Constraints on this freedom threaten the ened further by politics more broad- more diplomas and certificates (rath- institutional loyalty and the quality very essence of the university’s purpose ly. During this time the country er than degrees) in response to stu- of teaching. Academic freedom is was an authoritarian one-party dent demand. best protected when academics are state. Academic community activism A new importance has also been united in the defence of their pro- against this resulted in the arrest, attached to student evaluation of fession. imprisonment and exile of academ- teaching. When these evaluations ics and campus closures. Academics are used to determine promotions, What is taught also censored themselves in their tenure and pay increase, they can be Trying to fill funding gaps also affects teaching and writing. used to penalise academics critical of what is taught. From mid-1990 to the present, university administrations. Universities now prioritise threats to academic freedom have applied sciences, technological and arisen from the rapid expansion of Academic routine business programs due to high stu- the higher education sector, which Now, academic staff are evaluated dent demand and perceived mar- now operates as a market. on their ability to teach and pass ket needs. The basic sciences, the students, generate revenue for the foundation of applied sciences, and universities through contract grants, liberal studies have less commercial Market forces and undertake community outreach. value. About 20 years ago, the government Their work is a routine of teaching, Academics in applied disciplines cut university budgets as part of grading and paperwork completion. also have more access to research cost-saving measures. It also liber- This gives them little time for schol- grants. This means they are able to or control by any outside agent. international donors, the focus is on alised the higher education sector arship and critical thought. generate more research revenues for ISHMAEL MUNENE Generally, this means that academic applied scientific research and mul- by allowing private sector actors to The rise of part-time teaching universities than their counterparts Professor of Research, Foundations & freedom cannot be divorced from its tidisciplinary studies. Basic sciences finance and develop universities. staff as a cost-saving measure is also in basic sciences and humanities. The Higher Education, Northern Arizona financial base. and humanities – the building blocks It also meant that public univer- a threat to academic freedom. result is that academics are divided University There are 37 state universities in for critical thought and action – are sities had to generate revenue from These academics lack security of into two camps: those seen as cru- Kenya and 23 private ones. The state neglected. the market place. The universities cial for the university’s survival and cademic freedom is the subsidy to public universities has are expected to employ business those that are dispensable. right enjoyed by university fallen dramatically. Evolution of academic freedom operating models, observe a corpo- Disciplinary divisions run count- teachers to teach, research For about 20 years, since the Kenya’s public universities have rate governance ethos, compete, and er to solidarity needed to defend and write in their areas of state cut its budgets, Kenya’s univer- gone through two eras which have sell goods and services. academic freedom. Aexpertise without fear of retribution sities have been shaped by a drive both placed constraints on academic There are now state universities Academic freedom must be a by institutional powers or political for profit to cover operating costs. In freedom. with an enrolment of about 539 749 shared responsibility between aca- authorities. 2011 private revenue – from streams From 1963 to mid-1990 the state students. demics and university administra- In universities, academic freedom like tuition fees, programme fees and was the sole financier of the univer- This commercialisation of the tors. While student representation in is desirable because their work is to contract research – actually exceed- sities. It was also dominant in the university poses a serious threat governance is encouraged, academics search for truth, transmit knowledge ed state subsidies in Kenya’s top five management of university affairs. to academic freedom in public and should have most power and author- and, often, speak truth to power. public universities. Academic freedom took a back seat. private universities. The rise of part-time ity on matters related to teaching, Constraints on this freedom threaten This commercialisation of learn- In this post-independence era, Universities are no longer pri- research and student assessment. the very essence of the university’s ing means the role of university university enrolment stood at 452 marily centres of knowledge dis- teaching staff as a cost- Administrators must oversee finance purpose. authorities is that of fundraisers and undergraduates in 1963. It eventual- covery and transmission. They have saving measure is also and general administration. Fundamental to academic free- managers, rather than leaders and ly rose to 5 454 undergraduates and turned knowledge into a commodity. a threat to academic dom is autonomy: the ability of defenders of academic freedom. 1 383 postgraduates in 1983. Their focus is less on the knowl- This article is part of a global series on universities to make internal deci- In addition to this, since the The institutions had a narrow edge, growth and development of the freedom academic freedom featuring academic authors from around the world. sions independent of state control, bulk of research funding is from focus: train people for the indepen- student but more on selling goods
84 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 85 AGRICULTURE Feature
would likely depress producer prices in the middle of the main season for harvesting. Farmers usually sell immediately after harvest. But government’s response is that there’s a need to import given the expected shortfall. It is my position that a key stick- ing point is contested data, with dif- ferent stakeholders providing differ- ent numbers that support their argu- ments. The Ministry of Agriculture is the institution mandated to generate data on food security. But it has capacity gaps and doesn’t do this well. Tegemeo Institute, where I work as a research fellow, is recognised 40m as a credible source of data in agri- This year’s culture. However, the Ministry of projected Agriculture can decide whether or not to use the data, which it does on production is and off. unlikely to hit The current debate is stirred by the 40 million interests among the political class, target. Given elite business people. The use of evi- this, there is dence is not in their interest. an on-going debate on The production landscapes whether Policies on maize have always been contested in a market characterised to import by lobbying from farmers, millers, maize from and consumers. outside the Ideally, farmers and millers will East African Understanding the political make a reasonable profit and con- Community sumers will get affordable prices. But region to plug economy of maize in Kenya the Kenyan case is far from ideal. the gap Farmers have perennially agitated for higher prices due to high production The import debate has TIMOTHY NJAGI NJERU Kenya’s annual production tar- costs. In response, government has get has been 40 million bags or The gap between demand and external tariff designed to protect intervened by setting maize prices, increasingly taken a political Research Fellow, Tegemeo Institute, approximately 3.6 million tons. domestic production has placed local producers. However, countries usually above market rates, for the Egerton University tone with politicians from However, over the past decade, the maize at the centre of the food secu- can seek exemption and import duty strategic food reserve. The strategic maize producing regions in average production has been well rity debate. free from elsewhere when a pressing food reserve was set up to stabilise Kenya totally against any aize is the cheapest below 40 million bags, with the This year’s projected production need arises. Kenya also has a total food supply and food prices. imports. They argue that source of calories among exception of 2012, 2013, 2015 and is unlikely to hit the 40 million ban on GMO products meaning that On the other hand, consum- imports would likely depress the cereal grains, mak- 2018. Last year saw the highest pro- target. Given this, there is an on-go- it can only import from GMO free ers want to buy cheap maize flour, producer prices in the ing up about 65% of duction of 46 million bags. ing debate on whether to import countries. squeezing the government between Mtotal food calories consumed by At the same time, demand is maize from outside the East African The import debate has increas- producer and consumer demands. middle of the main season households in Kenya. To meet this growing driven by population growth Community region to plug the gap. ingly taken a political tone with for harvesting. Farmers demand, maize is produced on 40% and stands at above 50 million bags Importing from within East politicians from maize producing Challenges galore usually sell immediately of the total crop area – mainly by in 2019. It has been projected to African Community is the first log- regions in Kenya totally against any Despite the importance of maize, after harvest smallholders. reach 60 million bags by 2025. ical step in view of a 50% common imports. They argue that imports productivity has stagnated and
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Institute show that the country has enough stocks to get to the start of the harvest period in 2019, even under the most pessimistic scenario. The harvest is now expected to be in August rather than July because of delayed rains. The outlook suggests a deficit for the full season. Government recently estimated the deficit at 12.5 million bags while clarifying that it has not authorised any importation. The ministry is doing the right thing in terms of preparedness based on recent history. However, this pro- nouncement was met with scepti- cism especially by political leaders from the maize producing regions is now about only 1.6 tons/ha, information on how to improve pro- who have insisted the data is inac- leaving Kenya trailing behind ductivity. curate. other maize producers on the conti- There are also market failures, The size of the deficit matters nent. Ethiopia, for example, is twice exemplified by the poor distribution because it determines whether maize as productive, with a productivity between deficit and surplus regions. can be imported from outside the of 3.7 tons/ha. Ethiopia managed This means that the market is unable East African Community. Like to attain high productivity through to signal or provide incentives for Kenya, other East Africa Community improving access to extension ser- traders to address supply issues. countries also experienced bad vices, use of modern inputs and This implies that the government weather. Their production is expect- improving rural infrastructure. must intervene to correct the market ed to be below normal production. The productivity of Kenyan failure. However, early indications are that maize farmers has stagnated because Yet there is little to show for gov- Tanzania has sufficient stocks to farm sizes have declined to uneco- ernment attempts at resolving these fill the deficit that Kenya faces. The size of nomical sizes. This has mainly been issues over the years. Key interven- Moreover, additional stocks could the deficit caused by population increase and tions in the past included a fertiliser come from Uganda. matters urbanisation, which have led to subsidy, food subsidy, and producer because it increased land subdivisions in rural price support. A task force appointed When to import determines areas. In addition, Kenya’s soil qual- last year to find solutions to the chal- It is only after factoring in the inflows whether ity is declining while smallholder lenges has yet to present its report. from the region that a decision can maize can farmers often plant unsuitable vari- be made whether imports from out- eties, have low use of complementary Is there a deficit? side the region are needed. And such be imported inputs, and sub-optimal use of inor- In the latest controversy, millers have a decision should be guided by three from outside ganic fertilizers. accused farmers of hoarding maize principles. First is verifiable data on the East Added to all these are the effects to drive prices higher, a claim which the deficit, second is the timing of African of unpredictable and unfavourable farmers reject. Farmers and millers the importation which should not Community. weather patterns compounded by disagree on what is the level of maize coincide with the harvesting season Like Kenya, limited access to water for irriga- held in storage. in Kenya and, third, is to ensure other East tion, and increased pest and dis- More alarming are the differ- decisions to import should not be Africa eases prevalence such as the Maize ent positions taken over the avail- delayed until the stock in the coun- Lethal Necrotic Disease and Fall able maize stocks by the Ministry of try is depleted. Community Army Worm. Agriculture and the Strategic Food Finally, all these decisions and countries also Most farmers rely on public Reserves board, two institutions key processes should be transparent. experienced sector extension systems. Without to maintaining food security in the This would include making public bad weather. access to proper extension services, country. the importers and volumes permit- Kenyan farmers have no access to Recent projections by Tegemeo ted for importation.
88 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 MARITIME Review
including the United States, United Somalia. a Norwegian citizen, and that Kenya Kingdom, France, Italy, and Norway. Two, Britain has a longer rela- expelled Norwegian oil giant Statoil. Countries like Kenya and tionship with Somalia in terms of The US is siding with Kenya Somalia are increasing importance onshore and offshore oil explora- because the two countries are part- given that some of the largest and tions. For instance, British Petroleum ners in the “war on terror”, and most recent oil finds have been in (BP) had oil exploration conces- the fact that American companies Africa. This could very well continue. sions in Somalia from the 1980s stand to benefit from the oil and until 1991 when Somalia plunged gas exploration if the disputed ter- Global interests into violence after the ousting of ritory is found to be within Kenya’s The maritime dispute between President Siad Barre. maritime zone. The two countries Somalia and Kenya has attracted A decade later in 2012, as vio- have already signed other trade deals the interests of global powers like the lent conflict raged on in Somalia, it worth $100 million. And France is on US, UK, France, Italy, and Norway, emerged that Britain was involved Kenya’s side given that Total Oil was all of whom are keen to share in “in a secret high-stakes dash for oil contracted by Kenya in the disputed the exploitation of the resource-rich in Somalia”, with the government maritime zone. maritime blocks. offering humanitarian aid and secu- As the dispute has escalated rity assistance in the hope of a stake Way forward these powers have taken different in the beleaguered country’s future The ICJ ruling notwithstanding, sides. energy industry. Kenya and Somalia need to cooper- The UK, for example, has shown Norway is also backing Somalia. ate. They should focus on enhancing support for Somalia. This is for two It has been reported that the country their historical ties, and economic reasons. One, UK-Kenya relations was one of the main bidders at the and security interests for their mutual have not been the best since the Somalia Oil and Gas conference in benefit. Both countries must remain election of Uhuru Kenyatta who London. This could have something vigilant against external interests became president while a suspect to do with the fact that Somalia’s that divide the continent and lay its at the International Criminal Court. Prime Minister Hassan Ali Khayre is resources bare for exploitation. This diplomatic row between He faced charges for crimes against On its part, Kenya needs to Kenya and Somalia is only the Western countries take humanity for his alleged role in demonstrate to Somalia, and other tip of the iceberg. Beneath Kenya’s 2007 post-election vio- Norway is also backing states in the region, that it views the surface are positions sides in Kenya’s maritime lence. The charges have since been them as partners. dropped. Somalia. It has been Kenya is home to a vibrant and interests that are being Under President Kenyatta, reported that the Kenyan-Somali community, hosts a pushed by players far afield row with Somalia the Kenya government has grav- large number of Somali refugees, including the United States, itated towards American, Chinese country was one of the and an increasing population of United Kingdom, France, Italy, The disputed territory is 100 ambassador in Kenya to “depart for and other interests as compared to main bidders at the Somali students in Kenyan univer- and Norway. 000 square kilometres with pros- consultations.” British interests. As a result, the UK Somalia Oil and Gas sities. Somalis have also made mas- pects of vast oil and gas deposits. Meanwhile, Somalia has a case has moved to consolidate its eco- sive business investments in Kenya. Diplomatic relations between against Kenya at the International nomic interests in the region through conference in London These are factors that the country the two countries have been on a Court of Justice (ICJ). In 2014, can leverage to restore diplomatic PATRICK MUTHENGI MALUKI steep decline since early 2019, when Somalia sued Kenya at the ICJ and relations. Kenya accused Somalia of putting asked the court to order a redrawing Finally, Somalia needs Kenya Senior Lecturer, Institute of Diplomacy Kenya’s blocks up for auction during of the sea boundary in Somalia’s and other African countries to attain and International Studies, University the February Somalia Oil and Gas favour. sustainable peace and security. So of Nairobi conference in London. The hearings were scheduled to it would be unwise for Somalia to Somalia refuted Kenya’s claims. start on September 3, 2019 but abandon intra-Africa relations in the dispute over maritime ter- But during the oil and gas confer- Kenya successfully petitioned the quest for resource-greedy Western ritory in the Indian Ocean ence, it had submitted bidding rules court to adjourn the case until June allies. The destiny and future of between Kenya and Somalia and procedures and also displayed a 2020. the people of the two countries are has resulted in major west- map of oil and gas blocks which it But this diplomatic row between “indissolubly interconnected”. This Aern countries lining up on either intended to auction in future. Kenya and Somalia is only the tip should be the guiding principle as side, depending on which of the two Following the London oil confer- of the iceberg. Beneath the surface Somalia and Kenya seek to resolve African nations best serves their oil ence, Kenya recalled its ambassador are positions and interests that are their maritime dispute through interests. to Somalia and asked the Somali being pushed by players far afield peaceful mechanisms.
90 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 91 SOCIETY Review Lift for maritime sector in Kenya and Djibouti after fall in piracy
Kenya and Djibouti have been pay- eign military facility. “Singapore of Africa”. It’s trading on ing more attention to policies around This is a clear example of Beijing the fact that it has a similar strategic Kenya and maritime governance and “blue” eco- prioritising its growing economic position along one of the world’s Djibouti, two nomic development. This relates to and security interests in Africa. And busiest shipping lanes. states directly sustainable use of ocean resources advancing its “massive and geopo- All of these approaches require affected by for economic growth, job creation litically ambitious” Belt and Road robust laws and regulations gov- and ocean ecosystem health. The Initiative. erning human activities at sea. They piracy, achieved refocus marks a shift from tradition- Kenya, too, has received inter- also call for a capable and flexible widespread al investments related to land-based national assistance and invest- coastguard and navy to enforce these reform of their conflict and land borders. ment. This includes support to set regulations and secure coastal waters domestic maritime In a recent article, I examine how up the Regional Maritime Rescue against threats such as piracy, fisher- sectors through Kenya and Djibouti reformed their Coordination Centre in Mombasa. ies crime and the illicit smuggling of new national domestic maritime sectors following Organisations like the International drugs, weapons and people. a decline in acts of piracy. The study Maritime Organisation have led initiatives and sheds new light on the limitations training for staff from the centre and assistance from and challenges facing domestic mari- for the Kenyan Navy. external partners time sectors in Africa as well as some The United Nations Office on Kenya has received international of the innovative approaches taken. Drugs and Crime has provided law assistance and investment A key point is that blue eco- enforcement training for the Kenyan including support to set up nomic growth is not possible with- Maritime Police Unit. It also opened out addressing security threats at a new high-security courtroom in the Regional Maritime Rescue ROBERT MCCABE sea. This includes building a robust Shimo La Tewa, Mombasa, for cases Coordination Centre in Mombasa number of causes. It grew from poverty and maritime security sector, improving of maritime piracy and other serious Assistant Professor, Coventry University lawlessness in Somalia alongside opportunity ocean health and regulating human criminal offences. he upsurge of Somali piracy after 2005 and a low risk of getting caught. By 2013 activity at sea in a more sustainable led to significant international activity the threat had been reduced. This was due way. National refocus The way forward in the Horn of Africa. Naval missions, to a combination of naval patrols, pri- At a national level, there is evi- There are lessons in the Horn of training programmes, capital invest- vate armed guards, self-defence mea- International partnerships dence of a fundamental shift towards Africa experience for other regions Tment and capacity building projects were sures on board ships and capacity Many of the new developments in building a more secure and sustain- of Africa facing similar maritime among the responses to the threat. States in building efforts ashore. the region have been supported by able domestic maritime sector. insecurities. One example is the Gulf the region also started to focus on the dangers Historically, most states international partners. The Djibouti For example, Kenya has created of Guinea. The first lesson is that and opportunities associated with the sea. in the Horn of Africa have Navy and Coastguard work close- a new coastguard service. Its job is to there’s a need to convince coastal Kenya and Djibouti, two states directly struggled with limited ly with the US Navy. Together, for police the country’s ocean territory states with weak maritime capacities affected by piracy, achieved widespread reform capacity to address mar- example, they are developing capac- and to ensure that Kenya benefits of the untapped potential of the blue of their domestic maritime sectors through itime insecurity. Their ity for stopping and searching sus- from its water resources. The country economy. Even reputational damage new national initiatives and assistance from naval assets, train- picious vessels. This is important in has new naval training partnerships, can harm tourism, development and external partners. Djibouti’s President Ismail ing, human resourc- countering the illicit trafficking in maritime capacity building projects investment in coastal regions. Guelleh recently commented during talks with es, institutional and people and smuggling of migrants and an implementation committee This was clearly illustrated in the Kenya on security and trade links that judicial structures, through Djiboutian waters. to coordinate “blue economic” activ- case of Kenya.Blue economic growth What happens in Somalia has an immedi- monitoring and sur- Djibouti has also benefited from ities. These include fisheries, ship- needs a safe and secure maritime ate impact on all of us. veillance have all been Chinese direct investment, which ping, port infrastructure, tourism environment for merchant shipping At its height, between 2008 and 2012, it is critically underfunded. accounts for nearly 40% of the fund- and environmental protection. in particular. It can also help allevi- estimated that Somali piracy cost the Kenyan But the internation- ing for its major investment projects. For its part, Djibouti has rap- ate poverty in coastal regions, pro- shipping industry between US$300 million al response to piracy – Chinese state-owned firms have built idly developed its maritime sector vide alternatives to criminawl liveli- and $400 million every year. This was as a and the investments and some of Djibouti’s largest maritime and recognised the financial benefits hoods, and allow local communities result of increased costs (including insurance) partnerships that emerged related infrastructure projects. These of leasing coastal real estate. The more ownership of issues that affect and a decline in coastal tourism. It also dam- – have helped some states to include the Doraleh Multipurpose country has an ambitious devel- them.Ultimately, maritime security aged Djibouti’s maritime industry, financial improve in these areas. Port, a new railway connection opment plan titled “Djibouti Vision and blue economic growth need to sector and international trade. More importantly perhaps, between Djibouti and Addis Ababa, 2035”. This sets out its aspiration be considered as a unified policy The upsurge of piracy after 2005 had a since the decline in piracy attacks, and the opening of China’s first for- to become a maritime hub and the issue.
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tax on gross revenues derived from Kenya’s tax on digital taxation. The OECD has tried to activities in which users are deemed get states to agree on a harmonised to play a major role in value cre- form of tax and processes in the ation. trade and services: the case of cross border transactions. Its convention addresses double tax- Jurisdiction challenges ation – but not conclusively. And The United States exercises personal known and unknowns when e-commerce took root, new and territorial jurisdiction which can challenges arose, including jurisdic- be termed as the legal power and It’s not clear yet who will be affected – or how the tax will tion issues, conflict of laws among authority by a state to impose a tax. be imposed. The treasury still has to issue new guidelines on nations and double taxation. The US relies on the OECD how the tax will be implemented. But it appears that potential On top of this, easy loopholes model law requirements to exercise targets include online taxi-hailing platforms developed that helped in tax evasion jurisdiction on a tax subject that has especially by companies dealing with physical offices within a region. If intangible goods and services. the company is not incorporated – or The OECD agreement proposed has no physical office – the govern- MERCY MUENDO Taking on giants the concept of significant economic ment gains territorial jurisdiction Lecturer, Information Technology and Like France and India before it, presence. This states that a non-res- by establishing substantial minimum the Law, Daystar University Kenya is trying to get its cut of every ident is liable to tax in the country contracts with the state. Minimum digital transaction within its territo- of sales even if the taxpayer has no contacts include systematic and con- enya will start levying new ry. The argument is that it is only fair fixed place of business within the tinuous action within the state. Such tax on digital markets to tap into the revenue accrued from geographic boundary of the country action results in a large volume of under a new law signed the digital economy taking place of sales. interstate business, in the course of by the president early in within their territory. Companies In the case of the European which subject received benefits and November.K The Finance Act seeks to registered elsewhere and operating Union tax kicks in if: protection of the laws of the state. broaden the Income Tax Act net to in their territory earn income from The non-resident exceeds €7 India’s rules on jurisdiction are include income accruing through a the same but do not pay taxes, the million in annual revenues from dig- similar. It claims to acquire authority digital market place. The law defines argument goes. ital services in a European Union over a subject through territorial and the digital marketplace as a plat- But this is easier said than done. tax big tech companies but scrap member state, and it has more than personal jurisdiction. It introduced a form that enables direct interac- In 2016 India imposed digital taxes the tax as soon as the Organisation 100,000 users who access its digital digital tax known as an equalisation tions between buyers and sellers of on technology companies involved for Economic Cooperation and services in a member state in a tax levy in 2016. goods and services through electron- in digital advertising. In 2018 the Development comes up with a way to year, or it enters into more than This imposed a levy on any busi- ic means country introduced a provision properly tax tech companies. And it 3,000 business contracts for digital ness to business transactions, includ- In addition, a similar change has requiring companies to pay tax on agreed to refund any over-payments services in a member state in a tax ing the digital advertising transac- been made to the VAT Act making domestic income accrued from a dig- that might occur in the meantime. year. tions famously known as the Google digital market services subject to ital platform. The provision requires The other proposal is described tax. It has also introduced another value-added tax. non-resident big tech companies to OECD’s proposed model as an “interim” 3% digital services digital tax similar to the OECD It’s not clear yet who will be pay direct taxes on domestically The OECD is an intergovernmental proposed model. And it has released affected – or how the tax will be earned income. economic organisation, founded in guidelines on what constitutes a sig- imposed. The treasury still has to In retaliation, the US conducted 1961 to stimulate economic prog- The other proposal nificant economic presence similar issue new guidelines on how the tax an inquiry and capped the number ress and world trade. Countries use to the OECD’s proposals. It used this will be implemented. But it appears of Indian foreign workers. The move its model convention on taxation as is described as an law to sue Uber for failure to comply that potential targets include online was detrimental to India. a template for allocating taxation “interim” 3% digital with the taxation law. taxi-hailing platforms. If experiences Earlier this year France imposed rights between them. services tax on gross Kenya might trigger a trade war elsewhere are anything to go by, a digital tax on big tech multina- The model allocates the primary with the US if it goes ahead and Kenya’s move to tax online com- tional companies. It required them right to tax to the country from revenues derived from imposes a digital tax. But it would merce could put it on a collision to pay a 3% tax on total annual rev- which capital originates (the home, activities in which be complying with the international path with Western governments and enue generated. This sparked a trade or resident country) rather than the users are deemed to guidelines proposed by the OECD. multinationals. One of the market war with the US which saw this as country in which the investment is In my view it should come up leaders – Uber – has already warned double taxation of its companies made (the host, or source country). play a major role in with guidelines that bring about the government that such a move and their partners. But two months Challenges arise when two or value creation clarity on exactly who and what is could result in trade wars and retal- later, the two countries agreed on a more countries claim rights to tax been targeted. iatory tax actions by the US. compromise. France said it would a party – what’s known as double
94 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 95 TRADE Review
for MSME policy development by of this instrument is an indication Kenya’s MSME Policy Environment Ranks at 3 identifying strategic priorities for of the focus we have to leverage div- improving the business environment idends of small businesses to unlock out of 5, needs to be reviewed towards global best to stimulate the growth of MSMEs our economy.” and the entire economy. In the baseline survey that was The index is drawn from a total conducted for one year from 2018, The tool, developed in 2018, is part of the developed and presented to H.E. producers, SMEs and small trad- of 75 indicators that are relied upon in partnership with Management KEPSA SME agenda and builds on the Kenya President Uhuru Kenyatta for ers to facilitate trade linkages and in measuring the extent to which University of Africa (MUA), Kenya’s endorsement during the 6th reduce importation of illicit goods. each policy dimension is either sup- MSME Policy Index ranks at 3.0/5, Rising Star and Scale-Up programme (KRISP) Presidential Roundtable (PRT) in The MSME policy Index is portive or not supportive of the with half of the eight policy dimen- for SME and Entrepreneurship Development- May 2016. The main objective of the first of its kind in Africa and MSMEs. The eight policy dimensions sions ranking below the neutral the KRISP programme was to foster borrows from the best practices in include: index of 3/5. development of a resilient Kenyan ASEAN countries. It was motivated Enabling governance and busi- “The study concludes that he Kenya Private Sector economy by supporting SME devel- by KEPSA desire to ensure inclusion ness regulatory environment; Kenya’s MSME policy environment Alliance (KEPSA), the apex opment, nurturing entrepreneurial of SME policy issues in the busi- • Reliable infrastructure and is currently largely not supportive body of the private sector, culture and expanding opportunities ness environment reform agenda and access to inputs; to MSME development and needs recently launched the Micro, for wealth and employment creation. that the year on year improvement • Human capital and entrepre- to be reviewed and strengthened SmallT and Medium Enterprises KEPSA has previously been in Kenya’s ranking on the World neurial skills development; towards world benchmarks such as (MSME) Policy Index to provide involved in efforts to organize the Bank’s Ease of Doing Business is • Access to MSMEs financing; ASEAN mean index of 3.7/5,” Ogalo policymakers and market players SME sector through formation being felt by businesses of all sizes Effectiveness of MSME repre- Ogalo, said that the Index will highlighted. with a tool to monitor and evaluate of Micro and Small Enterprises across the country. sentation; provide a basis for engaging the Reliability of infrastructure and According to the progress achieved in implementing Federation, and enhancing the reg- The Index is based on eight-pol- • Supportiveness of framework government in policy dialogue and access to inputs (3.38); governance 2017 Kenya Bureau policies meant to support MSMEs. ulatory environment through enact- icy dimensions and outlines recom- for business development; exchange of best practices. and business regulatory environ- of Statistic (KNBS) The tool, developed in 2018, is ment of the MSE Act 2012 – which mendations that are highly neces- • Market linkages and expan- “The index will enable stake- ment (3.30); policy reforms seeking data, approximately part of the KEPSA SME agenda also set the framework for estab- sary for MSME development across sion initiatives; holders to systematically and ana- to improve access to SME financing 1.6 million licensed MSMEs have been and builds on the Kenya Rising Star lishment of the MSE Authority and the policy space, legislation, regula- • Innovation, ICT adoption and lytically assess the MSME policy (3.17); and, innovation, ICT adop- established in Kenya and Scale-Up programme (KRISP) MSE Fund. On 29th May 2019, tions, programs, and MSME support technology transfer. space while identifying gaps in both tion, and technology transfer with- providing up to 85% for SME and Entrepreneurship KEPSA also hosted a Presidential systems and is intended to support Speaking during the launch policy development and implemen- in SMEs (3.06), are some of the of employment Development in Kenya that was Roundtable bringing together large the government in setting targets of the Kenya MSME Policy Index tation,” Ogalo, said while presenting dimensions where Kenya has fared cum KEPSA Member’s gala dinner, the inaugural findings of the MSMEs favourably. KEPSA Chief Executive Officer, Ms. Policy Index. On the other hand, half of the ABOUT KEPSA Carole Kariuki, said the tool had Given the critical contributions dimensions including human capital been used for the first time in Kenya of the MSMEs in the economy, the and entrepreneurial skills develop- KEPSA is the apex body of the and Africa as a whole to assess, tool will provide credible and scien- ment (2.98); frameworks for busi- private sector in Kenya to drive gauge and rank the MSME policy tific ways of tracking and facilitating ness development (2.87); market economic development through environment and to determine how policy dialogue, program coordina- linkages and expansion (2.80); and year on year improvements the MSME policies influence eco- tion and to promote good practices MSME representation (2.50) ranked in the business environment nomic growth and development. in the country. below the neutral index. by addressing cross-cutting “The tool will help in identifying According to the 2017 Kenya The study targeted registered business issues, driving local and international best practices Bureau of Statistic (KNBS) data, and licensed MSMEs with 2018 investments and addressing in facilitating MSMEs growth,” Ms. approximately 1.6 million licensed Single Business Permits (SBPs) in socio-economic issues with Kariuki said. MSMEs have been established in The tool Kiambu, Machakos and Nairobi partners. It brings together Dr. Chris Kiptoo, the Principal Kenya providing up to 85% of will help in Counties. The three counties were business associations, corporate Secretary, State Department of employment. These enterprises are a identifying chosen due to their high concen- bodies, SMES and start-ups to Trade, Ministry of Industry, Trade key driver towards the achievement local and tration of MSMEs and their close speak in one voice, working and Cooperatives applauded KEPSA of Kenya’s Vision 2030. However, international proximity to each other. closely with Government and for launching the tool. “The Index MSMEs only contribute about 20% best practices A total of 1,152 MSME owners other stakeholders through must be applauded as a purposeful of the total GDP which signals the out of the 118,726 formally regis- structured public – private in facilitating tool for interrogating and monitor- lack of correct policy for MSME MSMEs.’” tered and licensed MSMEs across dialogue platforms and other ing progress in policy implementa- development in Kenya. the three counties and from diverse engagement mechanisms. KEPSA Chief Executive tion,” he said. “MSMEs are the bedrock of Officer, Ms. Carole sectors of the economy were sam- On his part, KEPSA Head of our economy,” KEPSA Chairman, Kariuki pled at county and business category Policy Research Analysis, Victor Nicholas Nesbitt, said. “The launch level.
96 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 97 TRADE Review
Computer language such as computers and smart phones Coding is just another language, and – are key tools for learning how to Why all children must learn code children are known to learn new lan- code. Access and affordability of guages faster than older people. So, these is essential. Governments must starting young is a good idea. invest in broadband so that high Several countries – including quantities of data can be transmitted Australia, Finland, Italy and England at high speeds. – have developed coding curriculum They should also provide subsidies, for children between the ages of five or at least not tax information and and 16 years. communications technology (ICT) Coding language works with tools, so that more children can learn zeros (0s) and ones (1s) and strings coding at home or at school. of these numbers represent an alpha- Many African countries, bet. These then translate into words like Kenya, Ethiopia, Ghana and and sentences which triggers the Rwanda, have taken steps to reform computer or processor to initiate the ICT sector and expand broad- specific tasks. For example, print an band capacity. image on a screen, open a document In Kenya the government is that is saved in a computer or play aware of the need for ICT education some music. and has started to integrate ICT There are various coding lan- in the curriculum. The government guages. Some are so easy to under- also rolled out an ambitious Digital stand and work with that even chil- Literacy Program which would dren can learn them. bring broadband to schools and try -Visual programming languages to integrate technology into learning. – like Scratch – have been developed But it may take some time to to help children learn code using cover the entire country until there’s images, signs and diagrams. Other enough resources to integrate it into programming languages that chil- all schools. In many African coun- dren can use include Python, Ruby tries, even the more developed ones and Go. like Kenya, there are still basic chal- Most of these languages can be lenges to address. Nobody can used to write a series of commands For instance, a lack of infrastruc- BITANGE NDEMO piece of software. fields as diverse as hospital equip- or to develop web applications. ture – like electricity – resources, escape the Early coding languages emerged ment, remote education delivery, computers and teachers who know Professor, University of Nairobi touch of digital in the 1940s. These were basic in marketing creative art pieces or Benefits of coding how to use the technology. technologies. It’s what they could do but complex improving agricultural productivi- Aside from giving them a head start Fortunately, there are informal used in fields as cross the world, the con- to learn and needed an advanced ty. Coding language develops the for the future of work, compared ways in which children can learn diverse as hospital version of information understanding of maths. By the software that can effectively deal to other forms of numeric sciences, logical thinking as it requires a focus to code. These include boot camps, into a digital format – also 1990s – when universities, busi- with problems and challenges – for learning code can enhance children’s on solving a specific challenge. This codelabs, holiday coding camps equipment, called “digitalisation” – has nesses and people started to con- instance, because of coding, people creativity. teaches children to evaluate situa- and after school coding groups. In remote education Aincreased productivity in the public nect over the internet – computing who couldn’t get a bank account can For instance, much of teaching tions from different angles and come Kenya, independent modular cod- delivery, marketing and private sectors. As a result, vir- speed and memory improved to use now keep, send and borrow money math in Africa is still done through up with creative solutions. ing programmes exist for children. creative art pieces tually every country in the world is high-level coding languages. These using mobile phones. It’s an import- rote learning, a pedagogical method Fortunately, They also get to test these ideas There are also many free online or improving working towards a digital economy. became widely available on open ant skill to have as countries develop. that is outdated and discourages there are and, if they don’t work, figure out learning tools that children can use agricultural As this new economy evolves, source platforms and online tutori- In the past four decades, several creativity in children. Rote learning informal what went wrong. such as Massachusetts Institute of special skills like computer program- als made it possible for many people studies have assessed the effect of is based on memorisation of infor- Some studies have further sug- Technology’s OpenCourseWare and productivity ming are needed. This is like a lan- to learn and continue advancing the learning code on primary school chil- mation and repetition, “parroting” so ways in gested that coding enhances collabo- Codecademy. guage of numbers, known as code, languages so that they became sim- dren – usually between the ages of to speak. Research shows that rote which ration and communication, essential Coding is no longer the preserve which allows people to write instruc- pler. Today languages like Javascript six and 13. In each case, the findings learning isn’t effective because the children skills for future jobs. of computer scientists. Every pro- tions that are executed by comput- can easily be learnt by children. show that it is beneficial to children, learner rarely gets to understand the can learn fession in some way needs it. Like ers. The goal is to create something: Nobody can escape the touch irrespective of their career path later application of what they have learnt. to code Access to coding other subjects, it is always better from a web page, to an image, to a of digital technologies. It’s used in on in life. By comparison, coding builds Broadband and digital devices – introduced at an early age.
98 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 99 MANUFACTURING Opinion Driving manufacturing excellence through skills development Human capital development is central to employability continued to drop in high-income econ- that is entering the job market, both and sustainable enterprise omies such as Spain and Portugal over at rural and urban areas. the last decade, industrial employment According to the report, 9 mil- development within Sustainable continues to rise in East Asia. The lion individuals are expected to enter Development Goal (SDG) 8 on overall share of industrial employment the labour force between 2015 and Decent Work and Economic in Vietnam, for example, rose from 9% 2025. This means that we have to Growth in 1991 to 25% in 2017 whereas Lao create an average of 900,000 per People’s Democratic Republic share year. In 2018, our economy creat- rose from 3% to 10% over the same peri- ed 840, 600 new jobs - the formal BY PHYLLIS WAKIAGA od. To realize the above, these countries sector only accounted for 16.4%, brought together new technology and The second according to the Kenya Economic s more industries shift to auto- highly skilled young workers into the phase of the Survey 2019. mation and artificial intelli- labour market and in turn, increased programme, Through the Big 4 Agenda, the gence, the demand for the right their manufacturing production. which kicked manufacturing sector is expected to mix of skill, technical know-how Employment remains a daunting create 1 million jobs and increase the off at the Aand soft skills continues to rise. challenge in Kenya. According to the contribution of the sector to GDP Human capital development is Trading Economics, unemployment in beginning to 15% by 2022. Of the Big Four central to employability and sustain- the country stood at 9.3% in 2018. of this year, Agenda pillars, manufacturing is the able enterprise development within Whilst this rate has decreased by 2.2% supports CBET only one that is guaranteed to create Sustainable Development Goal (SDG) 8 compared to 2017, the World Bank and pioneer jobs and enhance its contribution to on Decent Work and Economic Growth. report on Kenya Social Protection and placement GDP in the short to medium term. This is more so crucial in an era where Job Programmes Public Expenditure of CBET However, formal employment in the automation is expected to reduce man- Review Report states that we are not graduates in sector increased by 1.4% to 307,592 ual labour. producing sufficient jobs as a country persons in 2018 (KNBS, 2019). Whilst industrial employment has to keep up with the growing population the industry. Whilst there is an increasing Vocational Education and Training technical institutions produce a and significant demand for skilled (TVET) sector and implementation globally competitive workforce that workers in Kenya, there is a mis- of Competency-Based Education and adapts to new work practices and match between the skills needed by Training (CBET) curriculum in the technologies for the 21st century. industry and skills taught in higher desire to establish an intentionally Technological advancements institutions of learning. Labour pro- competitive workforce. have the potential to create new and ductivity is essential formanufactur- Industry too is keen on promot- high-quality jobs, improve the job ing competitiveness. Lack of relevant ing youth employment in the coun- quality and productivity of the exist- skills and competencies can be det- try. In 2017, the Kenya Association ing work of the employees. Hence, rimental to the industry in terms of of Manufacturers launched its TVET we must invest in our human capital production and wastage. programme geared towards improv- and support the existing workforce, Investing in human capital ing access to jobs and economic by training and equipping them with should be a priority if we are to make opportunities for the youth through new skills to match with the current the most of technological advance- practical training of TVET gradu- industry demands. ments and the economic opportuni- ates. This will not only result in excel- ties it presents. Skills development The second phase of the pro- lence in manufacturing production not only stimulates the creation of gramme, which kicked off at the but will also help industries move up a sustainable development process beginning of this year, supports the value chain. but it also contributes to the transi- CBET and pioneer placement of tion from the informal to the formal CBET graduates in the industry. economy. Through this phase, manufactur- The writer is the CEO of Kenya Kenya has invigorated efforts ers provide trainees with on-the- Association of Manufacturers and the UN Global Compact Network towards bridging the skills gap job training during their industrial Representative for Kenya. She can be through various initiatives such as attachment period. reached at [email protected]. the reforms in the Technical and This experience ensures that
100 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 101 ANNIVESARYGOVERNANCE EDITION Opinion
How did they survive? Initially, both state corporations sur- railway service and electricity gener- (ISCOR) to produce cheap steel rails vived through close partnerships with ation for the mines. for the South African Railways and their private competitors. In the case South Africa’s state-owned companies: Kruger’s aim of fostering eco- Harbour and to create some inde- of Eskom, the power supplier agreed to nomic independence through local pendence from the profit-seeking provide electricity to the private Victoria a complex history that’s seldom told industries was utterly defeated with European steel makers. Fall Power Company at cost while the the British victory in the South Although both Eskom and Iscor company passed it on to their mining African War in 1902. But the con- were established under state auspic- customers at a hefty profit. NANCY L CLARK State owned enterprises in South Africa date back to the nection between economy and es, they enjoyed only tepid govern- Iscor reached similar agreements 19th century when Paul Kruger’s Zuid Afrikaansche Republiek Dean and Professor Emeritus, state lived on through the railway ment support and faced stiff com- with local engineering firms, providing Louisiana State University tried to promote local industries to stave off British control. and electricity concessions. By the petition. They were established at a them with raw steel to be fashioned into Kruger’s government erected high tariffs against imports of 1920s, the expanding railway enter- time when nearly all industrial goods finished products. In addition, Iscor many consumer goods as well as industrial goods used by the prise – the South African Railways and many consumer goods were reached a compromise agreement with he problems of South Africa’s mining industr and Harbours, now Transnet – imported at great cost. In the case European steel producers in 1936. This state owned enterprises are in needed more and cheaper electric- of electricity, the major market – the essentially divided the local market, the headlines every day. Yet ity, and steel for rails. In 1923, Rand gold mines – was with Iscor providing approximately many have existed for over State owned enterprises in of many consumer goods as well as the Smuts government estab- already under contract to one-third of steel goods. 80T years. South Africa date back to the 19th industrial goods used by the mining lished the Electricity Supply the private Victoria Fall Even more contentious were the Why were they established in century when Paul Kruger’s Zuid industry. At the same time, it handed Commission (now Eskom) Power Company. And in the corporations’ labour policies. In the the first place and how have they Afrikaansche Republiek tried to pro- out monopoly concessions for local in part to serve the rail- case of steel, a European 1920s and 1930s, the white South survived this long? Their histories mote local industries to stave off manufacture. In most cases, foreign ways and also the grow- cartel of steel makers was African government pursued a policy provide clues for their successes and British control. Kruger’s government capital still managed to control these ing mining industry. ready to dump cheap steel on of favouring white people in industrial failures. erected high tariffs against imports enterprises – the most important for In 1928, Prime the South African market in jobs as a means of alleviating pover- Minister Barry order to kill off local produc- ty in largely Afrikaans-speaking rural Hertzog estab- tion. Some foreign firms estab- communities. State entities were under lished the Iron lished small operations inside the most pressure to hire whites, many and Steel the country, but with profits still unskilled, into their operations. Corporation flowing back to overseas inves- But, facing heavy competition, Iscor tors. could not raise its costs and employed almost as many black people as white people on its factory floor in Pretoria. In fact, most white employees were for- eign skilled workers. And the associated coal and iron ore mines (both Iscor and Eskom used vast amounts of coal) had predominantly black workers. Both of the first state corporations were dependent on close business rela- tions with private firms, often to their own detriment, and reliance on low labour costs to survive. But they could hardly profit or flourish under such conditions. During the Second World War, they were able to establish more successful operations under near monopoly conditions.
Building monopolies During World War Two, South Africa’s position changed from an importer to an exporter of many industrial and consumer goods. Its normal trad-
102 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 BUSINESS MONTHLY | JANUARY-FEBRUARY 2020 103 GOVERNANCE Opinion
ing partners –England and Germany – were obviously preoccupied with supporting their own wartime needs. In fact, England called on South Africa to provide goods from bullets to blankets to help the Allied effort. The intensified local manufacture of so many goods placed pressure on Eskom and Iscor, but also provided great opportuni- ties for expansion. In Eskom’s case, the greediness of the private Victoria Fall Power Company throughout the war per- suaded private capitalists that a partnership with the state would be beneficial. Electricity demand from the mines and also the wartime fac- tories on the Witwatersrand (Rand) skyrocketed during the war. The cost of electricity to the mines rose by 10%. By the end of the war, Eskom posted a loss for the first time in its history while the Victoria Fall Power through steel manufacture. A Rooikat tank rations could only survive by relying Company earned handsome profits. manufactured heavily on support from private cap- By 1948, Eskom had succeeded An Apartheid model by Denel gives a ital in the form of partnerships and in expropriating the private company The change of government in 1948 demonstration at outright financial support, and the the Africa Aerospace with assistance from the largest min- led to a brief change in policies extensive use of disenfranchised and and Defence Expo ing company in the country – Anglo- toward the state corporations. The last year. thus lower cost labour to insure low American Corporation – which pro- Nationalist government, wary of charges to its customers. vided money for the buy-out. Eskom foreign and even local capital and Yet this structure could not sur- then linked all power stations in the suspicious of the state corporations’ vive the flight of capital and the country into a national grid allowing ties to Anglo American, initially enfranchisement of the workforce for cheaper production of electricity refused to provide the funds for that followed the democratic transi- and lower prices to its customers. further expansion of either Iscor’s tion of the 1990s. Similarly, Iscor was able to or Eskom’s facilities. Partnerships Iscor’s former partners fled to eliminate competition through part- with the local engineering firms were more lucrative parts of the world nerships with the Anglo American likewise ditched. and the steel corporation was sold to Corporation. Iscor needed to find But by the early 1950s, realis- private interests; and Eskom faced local engineering firms that would ing the advantages to such arrange- an expanding demand for residential process its raw steel into war mate- ments, the government relented and electricity without the financial and riel. Many were either foreign or the old ties were renewed, leading to marketing support of the mining were owned by the Lewis and Marks massive increases in production by houses. investment company that also oper- both firms. The change of Their survival now depends on ated a competing steel company, In addition, the government government adapting to the dramatic changes in Union Steel. looked the other way as it became in 1948 led to South Africa’s post-apartheid econo- In 1945, Anglo American – apparent that black workers were a brief change my rather than relying on their old which became Iscor’s partner in being used extensively at both firms in policies strategies. all of the major engineering firms – and even as semi-skilled workers – bought out the company. Since at Iscor – yielding a wage bill that toward This article is based on a book – Anglo was principally a customer was less than a quarter what it was the state Manufacturing Apartheid: State Corporations in South Africa – written for their goods, it was interested in for whites. corporations. by Nancy L Clark. Published in 1994, it low prices and not in reaping profits Ultimately, the early state corpo- is now out of print.
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