NOT FOR SALE TRAVEL GEMS TRAVEL | October - December, 2018 | October - December, PURSUITS Corporate Magazine Corporate KENYA COUNTRY

into success stories success into

entrepreneurs are taking taking are entrepreneurs

advantage of opportunities opportunities of advantage

scaling their small businesses businesses small their scaling

Thanks to the Internet and and Internet the to Thanks

E-COMMERCE phones, smart of power the

created by e-commerce and are are and e-commerce by created INDUSTRY CONCERTS INTEL HOUSING FUND TRENDS

E-COMMERCE REPORT E-COMMERCE

revolution

commerce Mobile Regulated2 by| the Central Bank of Kenya 37 KCB Bank’s Simba Points program Through the Simba Points program, the bank is rewarding its customers for transactions they make.

6 Housing pillar and the opportunities for investors The government has prioritised housing as one of the pillars that will drive growth in the next five years. 42 Hidden gems for tourists It is the holiday season again, a time when people are planning to go on holiday. To help you choose, we have curated some of Africa’s best hidden gems. 24 8 Making of a memorable concert From dukawallas to Jumia There are many factors Over the years, Kenya’s retail sector has that take place behind-the- experienced tremendous growth. Corner shops, scenes which determine if the which were the norm, are being replaced by audience get value for money. mega shopping malls and virtual stores.

Nairobi’s ‘kibanda’ traders make a big splash online Marketers are leveraging on the power 18 of social media to advertise and sell their products and services.

| 3 WORDFROM THEEDITOR Latching onto the digital platforms few of years ago one would have been quick to dismiss the suggestion that e-commerce would one day kill “brick and mortar” retail as lazy thinking. A It’s true that the digital age has E-commerce has completely upended the way we go tremendously reduced through our day-to-day lives. From the way we communicate, the transaction costs transact and even in buying and selling; the transformation associated with KCB Group Head of Corporate and purchase, sales, Regulatory Affairs has been deep and far reaching. Judith Sidi Odhiambo The developments within the retail sector especially have operating a business brought forth the heft and impact of online shopping in the and holding inventory. Director Marketing and Communications country. Manufacturers, traders and consumers can now Angela Mwirigi reach the market more quickly and get more information Brand Manager Marketing and than they could ever before. E-commerce has tremendously Communications reduced the transaction costs associated with purchase, Charity Wanjau sales, operating a business and holding inventory. KCB Group Corporate and Regulatory In terms of non-financial benefits, e-commerce has Affairs, Kencom House, Nairobi significantly helped improve human resources and Tel:0711087000 or 0732187000 / 0711012199 timeliness, quality of services and customers’ satisfaction. www.kcbgroup.com In this issue, we have cast the spotlight on e-commerce, Facebook: KCB Group with in-depth articles on e-commerce in the 21st century, Twitter: @KCBGroup An indicator that there is a huge potential and steady Instagram: @KCBGroup momentum for growth in e-commerce is seen in the Give us your feedback at: number of young people who are embracing online [email protected] businesses. Most youths find it much convenient KCB Venture is published for KCB to do business online instead of opening shops Group by Oxygène MCL where huge financial outlay is required to set [email protected] up the infrastructure. This is a classic example www.oxygene.co.ke of the potential ICT holds in unlocking youth Editor and KCB Bank Corporate unemployment. Communications Manager The housing fund is also another key issue Peter Mwaura featured in this edition. The Government Project Editor of Kenya, the National Housing and Anne Mathenge Development Fund will soon collect up to US $34m annually from employers and Production Editors: Mugumo Munene, Esther Karuru, Mutave Mutemi, John employees through a recently passed Ngirachu housing fund levy contained in the Finance Bill 2018. This is in line with the Contributing writers: Josephine Mosongo, Donald Kogai, Vanessa Big 4 Agenda where the provision of low- Wanyee, Ritah Nyawira, Peter Swaka cost housing is one of President Uhuru Kenyatta’s legacy projects. Art Director: Dennis Makori Of course, we have also retained your KCB Venture is available at all corporate favourite sections on Trends and Intel branches and at select hotels and as well as Pursuits, with focus on how to businesses in Nairobi.

organize a concert. ©2018 No part of the contents may be Enjoy the read. reproduced without prior permission from the publishers. All advertisements and non-commissioned texts are taken in good faith. While every care is taken to ensure accuracy in preparing the magazine, the publisher and KCB Editor-in-Chief Venture assume no responsibility for effects arising therefrom.

4 | OPINION

KCB Bank’s place at the In 2017, we enabled deals heart of global e-commerce worth over KES236 billion Peter Kathanga through mobile phones. The he world of e-commerce is uptake in terms of usage had a significance Bank now upending legacy commerce increase from 23% in 2016 to 63% in 2017. has over systems in ways that are The rise in mobile money is pushing up 13.6 million mind-boggling when e-commerce significantly. customers on T examined through the In 2017, we enabled transactions worth our mobile rear-view mirror. over KES236 billion through mobile platform. Words like mobile money and mobile loans phones. The Bank now has over 13.6 million and savings were literally unheard of two customers on our mobile platform. The decades ago. Today, electronic payments, number of transactions on digital channels powered by the internet, are driving was over 87% of total transactions. To enable multi-billion shilling business models and efficiency and convenience, we continue to economic juggernauts across the globe. invest in systems and people to drive this 87% E-commerce has brought about some of transformation while introducing modern the most dramatic business shifts witnessed touch points that offer customers simple Number of in recent memory. solutions while improving their experience. transactions on According to a McKinsey comparative Such include mobile USSD and the KCB digital channels analysis on the changing consumer App, cards, social media, chat boxes and as a percentage landscape, in 2000, Kmart was the third- smartphones. of total largest US retailer, with $36 billion in sales; Mobile money for us is not just a business transactions. by 2014, its annual revenues had declined by product but an economic enabler especially two-thirds. when you circle back to the power of The consulting firm also reports that e-commerce. Today, a craftsman working over the same period, Amazon’s annual out of a rural town in Kenya can sell sales grew to $89 billion from about $2.8 to a global marketplace thanks to billion. Alibaba, the market leader in China’s e-commerce. booming e-commerce business, was only a Big brands have also carved 15-year-old company when in 2014 it filed the a niche in the ever-growing largest IPO ever, valued at $25 billion. e-commerce platform by For a while, the developed world seemed evolving in order to survive this to “own” the disruptions brought about 21st century disruption that has by technological innovation. But right levels of kinesis that are moving here in Africa, we have witnessed our own commerce to a new normal every so disruptions, powered by mobile phones and often. We must embrace an extract their rising capabilities gliding on the wings the full benefits of the rise and rise of the Internet. of e-commerce. We at KCB Bank know this only too well thanks to the digital journey that we are The writer is walking with our customers. the Director, In 2017, card usage increased by 46% in Corporate line with the cashlite agenda that encourages Banking at electronic transactions such as shopping and KCB Bank paying for bills. In the same period, mobile Kenya

Number of customers on 13.6 million KCB’s mobile platform

| 5 TRENDS&INTEL

INVESTMENT Housing pillar and the opportunities for investors

overnment’s renewed focus 500,000 houses by 2022 under the government has put on the housing sector housing pillar in the Big Four Agenda. forth,” said Kwame Owino, offers opportunities IEA estimates that putting up the IEA’s chief executive. for investment in 500,000 houses will cost up to Ksh300 Investors can bet on G Public Private billion, meaning that investors looking increased demand for the materials Partnerships, for good returns can work with the that go into making the three making building materials or providing government on the Public-Private discrete parts of a housing unit – the finance for companies in that area. Partnerships framework. floor, roof and the walls. According to an analysis by the “This is a massive opportunity “This (housing) plan offers a lot Institute of Economic Affairs (IEA) on for housing developments and of business opportunities to building behalf of KCB Group, the three main financial institutions should be material solution providers like us,” areas should provide good returns keen to participate in the Public said Winnie Ngumi, the Managing as the government looks to put up Private Partnerships (PPPs) that the Director of Space and Style Limited. The company that is famous for Decra Roofing Tiles is planning to launch a factory in Kenya to 500,000 manufacture stone-coated rooting tiles, Houses government plans which Ms Ngumi says will offer cost to put up by 2022 savings to developers and increase the availability of the tiles. Ms Ngumi says the drive to increase KES5,000 housing also boosts job creation across the construction cycle - building Amount employees must consultants, contractors, financiers, contribute to the National suppliers and tradesmen (fundis). Housing Development Fund The third big opportunity is for financial institutions willing to fund the companies that look to cash in on the expected boom in the construction industry once the implementation of the plan gains steam. “Apart from the direct investments, the growth of the construction industry

6 | TRENDS&INTEL

Housing Fund Review of the regulations

For Government to make not qualify for affordable the housing pillar a reality, housing despite being the several legal reforms have highest contributors to been introduced, the latest the Housing Fund. These being the proposition of provisions will most likely the draft Housing Fund be clarified in the course Regulations, 2018 (“draft of the legislative review of Regulations”). these Regulations. The Regulations seek to implement the Registration and recent amendment to Contribution the Employment Act to The draft Regulations include section 31A which require all employers to introduces a mandatory register with the Housing contribution of 1.5% of Fund as a contributing an employee’s monthly employer while employees salary to the National register as contributing Housing Development employees. Failure to Fund (“Housing Fund”), by register and/or make both an employer and their contributions are offences means that For employees who are not employee. Employers will that will attract a term the firms eligible for the affordable housing, contribute a similar amount. of two years or a fine not that will the contributions will be held for a Section 31A of the Act exceeding KES10,000 upon participate in maximum of 15 years, after which provides the mode of conviction. the sector will require they will be given to them in cash, calculating the contributions The Housing Fund shall (1.5% of the monthly communicate to employees massive amounts of transferred to their pension fund or basic salary); the timeline and employers on the funds to undertake handed over to a beneficiary they for remittance of the requirement to register the projects,” says Mr have identified. contributions (monthly with the Housing Fund. Owino in his analysis. Forecasts show that about KES55 before the 9th day of the Registered employers will month); how the benefits also have to keep a record IEA also identified billion would be collected through will accrue to an employee; of the earnings of their six drivers for the the Fund in one year, meaning that and provides for payment employees and will keep affordable housing programme: there would be a guaranteed source of returns on an employee’s the record for a period not project structuring, financing of capital for the government to contributions to the fund. exceeding 10 years. strategy, construction technology, finance the programme. Contributing members Affordable Housing Tiers shall be eligible for a land strategy, supporting That affordable housing is The Regulations refund if: they are unable to infrastructure and legislation. necessary is not in doubt. introduce 3 housing tiers: contribute due to disability; But first things first: regulations According to an analysis of Social Housing - this is or have not obtained a to set up the National Housing status of housing by IEA, there is a the lowest tier designated housing loan or have not for people earning between been allocated a house Development Fund need to be cumulative housing deficit of two KES0 and 14,999 per month. within 15 years, or have approved. The plans were set in million units, and this increases Low Cost Housing - this is attained retirement age, motion by the enactment of the by 200,000 units annually as only the middle tier designated whichever is sooner. The Finance Act, 2018, which set out 50,000 units are put up every year. for those earning between refund shall include interest the monthly payments employers With 83 per cent of housing KES15,000 and 49,999 a and shall be paid after 3 month. months in the following and employees need to contribute. directed towards high-income and Mortgage Gap Housing manner: In the proposed changes to the upper-middle income segments - this is the top tier transfer their law, employees will contribute 1.5 of the population, the National designated for people contributions to a pension per cent of their salaries to the Housing Corporation, and the earning between KES50,000 scheme; and 100,000 per month. transfer of their Fund, with the employer remitting government at large, views the Notably, the draft contributions to any person a similar amount. The maximum growing crisis as a matter requiring Regulations do not provide registered and eligible for deduction is KES2,500, meaning urgent action. a qualifying criteria for the affordable housing under; that the maximum an employee The renewed focus on housing, affordable housing scheme. transfer of contributions and employee can contribute will therefore, heralds progress in that Based on the definitions to their dependants; or above, people earning to receive their be KES5,000. direction. above KES 100,000 do contributions in cash.

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Take for example Beyoncé, every move she makes from a simple smile to the detailed choreography with her dancers is synchronized to the second - Chris Kirwa, events’ organiser

EVENT PLANNING The making of a memorable concert There are many factors that take place behind-the-scenes which determine if the audience get value for money

8 | TRENDS&INTEL

he year is coming to an end says sound, lighting checks and rehearsals a live band that he had not rehearsed and in typical Kenyan should be done days in advance. with and even that could not salvage the fashion, music concerts “The norm in Kenya is that artistes and situation. are the way to mark the entertainers do rehearsals on the day of “Just because people have sound T Christmas holidays and the event which means in case of a hitch, equipment does not necessarily mean they close the year in style. the organisers have little or no time to are knowledgeable in sound engineering. But going for that once-in-a-life time rectify. I also like it when artistes land This is a very crucial element and many event at your local venue can either be a three days in advance to mitigate things musicians are sensitive to the quality of memorable affair or a nightmare. like delayed flights,” he says. sound provided by the organisers,” Kirwa For the audience, how good or bad a Another aspect of risk assessment is says. show is boils down to one focal point - the gate management. “You cannot have one Organisers too have to cater to the needs main act. Most audience members don’t entrance and expect 2,000 people to access and whims of the artistes, some of whom remember the lighting, venue, timing, and exit the venue through one gate.” make outrageous demands. stage etc. Just to paint a picture of how Some may ask for an obscene amount But these and other special factors go other countries seriously take their of champagne or the finest whiskey, or into making these events a success. The performances, Kirwa recalls when years an absurd amount of sparkling water or factors, which happen behind-the-scenes, ago, Kayamba Africa travelled to Beijing imported Versace towels or specific brand are what makes or breaks concerts. for the Olympic cultural festivities one of vehicles. The list is endless. For a concert to be successful, month in advance and rehearsed eight These demands, which are referred to promoters, organisers and suppliers need hours a day in readiness for a five-minute as riders are usually part of a contract and to work together from the beginning. The performance. which the organizer commits to cater for. promoter is the investor; the supplier “Ideally artistes should have a week of Technically, a rider doesn’t only consist provides sound, security and lighting while rehearsals because everything has to be of the over-the-top requirements. It is basically a set of requests or demands by an artiste detailing sound and lighting requirements, specific instructions for the setup of the backstage, security needs and nutritional requests for his band and crew. “If an artiste specifies he wants to be paid in dollars but you pay him in shillings, why would you be surprised when he refuses to perform? That’s a breach of his contract,” Kirwa says. And this was seemingly what happened to Kwangwaru hit singer Harmonize. The Tanzanian star was in early November scheduled to perform in Eldoret for the inaugural Chaget Festival but that was never to be. the organiser oversees the logistics. synchronized. Take for example Beyonce. It was reported that one of the reasons According to popular events’ organizer, Every move she makes, from a simple the star did not perform even after hyping Chris Kirwa, lack of planning and smile to the detailed choreography with the event on his Instagram page was knowledge are one of the major reasons her dancers is synchronized to the second,” because he had requested to be paid in why concerts flop. he says. dollars only. Problem was, only half the With over two decades of experience, “But here we do not want to implement transaction was made in dollars. Kirwa says that, risk assessment is the all the knowledge we have. We prefer The Tanzanian heartthrob took to his number one priority in planning a concert. shortcuts.” Instagram page to set the record straight This covers everything from security, A few weeks ago Nigerian superstar and revealed that he was not paid in full crowd control and emergency response. Wizkid, was in Nakuru for the Katika and that the promoters duped him. As an organiser, Kirwa is the link Festival at Afraha Stadium. But instead So the next time you to attend a live between the client and the executive of an unforgettable experience, fans got a concert or any other event, take time to producer of an event. His job, he says, is to raw deal because the sound systems were appreciate the many different elements listen to the client and execute their needs. faulty. which went into making the show a Just like with risk assessment, Kirwa The A list musician switched to using success.

| 9 TRENDS&INTEL

opting for convenience over what was previously perceived as a routine and necessary evil. Brian Wathome is the Head of Business Development at E-Resident, a Kenyan online rent management platform. “I remember having to take the afternoon off from work just to pay rent. As a business man, the time would have been spent on more productive activities,” he says. E-Resident was born of a need to offer convenience to the housing sector and put the power back into tenants’ hands. For landlords, it was to offer efficiency in INNOVATION reconciliation and report generation away from the tedious process of door-to door- visits and manual compilation of payments. Led by E-Resident CEO, James Ayugi, the team has over the period of four years E-Resident: embarked on a software development journey that aims to shift the landscape of rental payments. Today, you can do almost everything on Rent your phone when it comes to payments; from school fees, shopping, transport, to A team of techies utility bills. The possibilities really are has crafted a simple, boundless. efficient, and secure For the team, it was a no-brainer to apply platform which not paying the same principles to rental payments. only makes rent paying “We did not need to re-invent the wheel hustle-free, it also because the mobile payments system works makes management so well in the country. E-payments provide and record-keeping of convenience, and what we bring to the rental income easier made for landlords table is that same convenience, says Mr. Wathome. “We wanted to give people the option of paying rent from the comfort of easier their homes, at work or in a taxi going about their daily routine; no disruptions whatsoever,” he adds. Although tenants can pay through the numerous mobile money platforms, most landlords prefer payment through the bank distinct wave of fatigue seems to sweep over the which generates a payment slip. masses at the beginning of each new month. With mobile payments, it is easy for Thousands of people begin to plan for a tenant who has fallen back on rent A either an afternoon off or a full day, payment to forge a payment message. depending on the distance they must This, Mr. Wathome says, is the loophole cover to pay their rent at their landlord’s preferred financial that E-Resident seeks to seal. institution. “Many people can pay via mobile money, Long queues, lost time and a lack of convenience have over but because the landlord does not have a the years brewed a frustrating reputation for landlords and system such as E-Resident, reconciliation the general experience of being a tenant. However, in a culture that has enthusiastically embraced technology, a new crop of tenants, landlords and agents are

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becomes impossible. Our system allows for channels that have already transparency and accountability,” he says. been put in place. In developing the software, E-Resident “Successful partnerships had one individual at the focus of their are all about identifying efforts - the end user. which organisations are also As such, they conducted rigorous market targeting your ideal customer research to narrow down the challenges in and finding a way to provide the sector to specific problems they could value back to the partner. solve and engaged various industry players Beyond this, the aspect of like property managers and landlords to credibility gained from buy- determine the relevance and effectiveness in through a partnership of the software they were developing. such as ours and KCB Bank “As techies, we sometimes forget the end is invaluable,” says Mr. user and tend to obsess over the software. Wathome. We had to engage our stakeholders at every “The sector involves a high point of development. The feedback on amount of cash flow and design, feature functionality and ease of use people want to know that helped us offer a better experience to our their money will be secure clients,” says Mr. Wathome. before they come on board. The bank’s stability and their their qualification criteria How it works willingness to innovate over generated from information Clients are either the landlords or time has been an asset to on the system,” says Mr. property managers who come on board and us as we work to gain our Many people Wathome. input their property into the system, the footing in the market,” he can still pay via “Our solutions are units in those properties and number of adds. mobile money, targeted at making the lives tenants in each unit. So far, the team has but because of Kenyans easier, if we can Each tenant is enrolled into the system invested KES200 million the landlord use tech to get rid of some of using their national identification card or from self-sourcing, does not have issues hindering this, that’s passport. partnerships, infrastructure a system such exactly what we’re going to The system then generates a message to integration and advertising as E-Resident, do,” he adds. each tenant with details of their individual and marketing services from reconciliation Looking to the future, account numbers and passwords. the bank. becomes the team is also keen on When rent is due, individuals log in In the pipeline is a project impossible. Our plugging into the country’s and pay either via mobile money or credit with the bank that seeks to system allows for Big 4 agenda with the card payments and all revenue collected close the gap on incidents of transparency and ultimate goal of affordable flows into the landlord’s bank account and delayed rental payments. accountability” - housing for all. This, they branch of choice. Dubbed OkoaRent, the Brian Wathome, believe, will be achieved Moreover, the payments reflect on partnership will offer a E-Resident’s through the use of Big the landlord’s side, enabling accurate credit rating system which head of business Data generated from the reconciliation which is a strength of the will enable access to credit development E-Resident system which will system. when individuals are give individuals the power For added security, E-Resident employs a unable to meet their rental to negotiate for mortgages at two-step verification process. obligations. This will be financial institutions. After a conclusive piloting phase, they structured such that, over 200m There are many reasons were ready to go to market and approached time, E-Resident will build a Amount of money to embrace technology; the KCB Bank to seek a partnership for the profile on customers based the company has convenience, the security, novel idea. on their paying behaviour invested and the general leisure of They found the right fit at the bank and ability and will regulate being in control. knowing they would gain an upper hand the amount accessed More so, in this case, it in the market by leveraging the bank’s vast through the facility based on this. just might be the permanent solution to branch network, existing customer base, as “Through OkoaRent, KCB Bank will your landlord knocking on your door, well as valuable resources and marketing loan tenants specific amounts based on every month.

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TRENDING NOW BEST SELLERS Mobile commerce revolution Thanks to the Internet and the power of smart phones, entrepreneurs are taking advantage of opportunities created by e-commerce and are scaling their small businesses into success stories

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Tracking your order Using your oder number you can log into the online store to track your shipment

Order is shipped Delivery Your order is processed After a couple of days and shipped out to you depending on where your order is coming from you ‘ll receive your order at your preferred location Payment Purchase Verification Proceed to include your delivery After payment, you’ll receive address and pay for your items via an email acknowledging card, mobile money or e-wallet. your order Payment may also include a shipping or delivery fee

Check out Click on the items and add them to the check out cart

Online store Sign in and log into the platform and search for the items you want to purchase. Online shopping

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Kenyan youth catch the internet start-up bug

an Arunga is a man who wears many hats. He describes himself as a writer, a creative director, a I blogger and also the founder of Dapper Monkey, an online clothing store. Dapper Monkey is the one stop shop for what he refers to as ‘the dapper man’, or to put it simply, the classic man. “We target the man who likes well-fitting clothes. The man who is unafraid of colours and likes good suits and good shoes,” he told Venture. “We target the man who wants to be different.” Since its formation, Dapper Monkey has seen some phenomenal growth both in sales and profits in the two My partner and years it has been in existence. I invested KES1 Dapper Monkey is just one of the companies jostling for online buyers million and in the country’s fast growing online three months retail space. after our launch, “My partner and I invested around the business KES1 million in the business and three broke even - months after our launch, the business Arunga, Dapper broke even,” he says. Monkey founder The Dapper Monkey story is not entirely different from others exploiting this online space. Purpink, an online gift store, is also following the same

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In many parts of the world, it is the government’s 20.5m duty to set up infrastructure that would lead to better Number of broadband exploitation of e-commerce. Now, many companies are subscriptions, which is a 3 dedicating resources to set up basic infrastructure such percent increase from last as GPS tagging and mapping - Dr Bitange Ndemo year’s 19.9 million.

trajectory, recording impressive sales A rookie mistake for many start- and client numbers since its entry ups, Ndemo says, is the lack of market into online business four years ago. research and keeping of unnecessarily “We started out with a capital of large inventory. KES500 while in university,” Ayrton “For instance, Alibaba ,which is one Bett, Purpink’s co-founder says. of the world’s biggest e-commerce “In a few weeks we’d grown this to platforms, has no inventory,” he says. KES4,000 in profits.” Admittedly though, some of the The internet market, which challenges start-ups in this space face forms the backbone of the success are as a result of what he terms as of these two companies, has been ‘institutional oversights.’ greatly transformed over the years “In many parts of the world, it by a combination of the roll out is the government’s duty to set up of Universal Service Fund (USF) infrastructure that would lead to projects, increased investment expansion of last mile fibre network better exploitation of e-commerce. in network upgrades by service coupled with increased demand for Now, many companies are dedicating providers such as Safaricom, Telkom broadband services. resources to come up with basic as well as Jamii Telecommunications “Subsequently, broadband infrastructure such as GPS tagging Limited. This, coupled with the penetration stood at 43.9 per 100 and mapping,” Ndemo says. increased availability, affordability inhabitants as the end of June, 2018,” And the setting up of this basic of smartphones and data bundles reads the report. infrastructure might just be the silver has helped shape the e-commerce But, although Dapper Monkey bullet that these growing enterprises narrative in the country. and Purpink are recording victories need to transition from being start- The Communication Authority in terms of revenue growth and ups to profitable SMEs. of Kenya, which regulates the profitability, observers say the “A key factor that will impact the communications sector, says e-commerce market and its potential growth of e-commerce in Kenya broadband subscriptions continue to remains generally unexploited, and and the region as a whole will be grow. that many of those who are in this transport (i.e. delivery ) logistics “The number of broadband space are going about it the wrong and retailers’ ability to gain the subscriptions rose by 3 percent to 20.5 way. trust of consumers that may still be million from 19.9 million recorded “Some businesses have been fairly hesitant to shop online,” Thomas in the third quarter of 2017. When successful but most of the pioneers Verryn, Euromonitor Senior Research compared to the same period in the had wrong business models,” Dr. Manager, told Venture. Euromonitor previous year, a growth of 33.1 per Bitange Ndemo, former Permanent is an international market research cent was witnessed,” the Authority Secretary in the ministry of provider. says in its 2017/2018 Sector Report. Information Communication and However, even with these The CA attributes this growth to Technology and the architect of the challenges, players continue to, in increased roll out of 4G network and internet revolution in Kenya says. their own way, disrupt the retail >>>

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Being online has helped me sell to customers I couldn’t otherwise get to. My products can be reduced to a hashtag that will reach millions of people as opposed to having a shop that will be limited to just a few eyeballs - Mweni

KSh8m Amount that the local internet retailing sector earned

>>> space. success for their individual products but do not have a At 24 years of age, Susan brands translates into success platform to sell them. We are Mweni says her company, Sued for other local businesses as trying to have as many local Watches, is ready to claim a well. A majority of products products on our website as stake in this rapidly growing, on their platforms are sourced possible,” Bett says. cut throat industry. locally. Over the last five years, “Being online has helped “In the beginning, we used online retail in Kenya has me sell to customers I couldn’t to get our stock from England, grown by more than 10 per otherwise get to. My products China, the US and some parts cent. Euromonitor estimates can now be reduced to a of Europe. Now most of our that there will be further hashtag that will reach millions stock is sourced locally,” Arunga growth over the coming years. of people as opposed to having says. “Euromonitor estimates that a shop that will be limited to Internet retailing earned KES8 just a few eyeballs,” Mweni says. Local businesses million in 2017 excluding VAT Her company sells Bett, of Purpink, too is on and will grow by about 12% customised Afrocentric watches. a journey to incorporate local until 2022 to reach KES10.941 She says she sells around 50 to creatives into his gifts platform. million in 2022, excluding 60 watches a month averaging “We realised that there are VAT,” Verryn says, adding that around two watches every day. many people and companies the Kenyan retail sector is For Mweni, Arunga and Bett, out there who make amazing the second most developed in

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We are yet to exploit the full potential of e-commerce. When we do, it will be a whole new world - Bett

Africa after South Africa. Even with these gains, the Kenyan retail scene, however, remains largely unpredictable. “We’ve seen many changes in the modern retailing sector with the closure of major players and the entrance of multinational players such as Carrefour, Shoprite and Choppies,” Verryn says. Data, both empirical such as that from Euromonitor and anecdotal, such as that from start-ups shows that opportunities abound. But for e-commerce to move to its next logical phase, a few things have to give.

The prospects “Studies show that it is the lower end of the market that needs this service the most. E-commerce should make sense to the mother in an informal settlement who wants to buy soap but can’t leave the house because she does not have a nanny,” Ndemo says. “For e-commerce, success is dependent on need.” As Dapper Monkey keeps moving its cool socks and exclusive cuff links, or as Purpink aims to get you that perfect gift for that special occasion and as Sued Watches strives to sell you that one of a kind time piece, one thing remains clear; there is some disruption within the retail space and this particular revolution will not be televised. It will be followed online, one check-out-now click at a time. When it happens, Kenya will be right in the middle of it and, according to Euromonitor, this East African economic powerhouse is likely to remain the regional leader. “We are yet to exploit the full potential of e-commerce,” Bett says. “When we do, it will be a whole new world.” Ayrton Bett, Purpink’s co-founder.

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ackson Kimani is an outstanding online J entrepreneur. The 38-year-old is the founder of Jackym Fashions, a clothing firm that uses social media platforms to buy, market and sell products in Nairobi and beyond. Jackym, which was founded in 2015, retails women and children wear. Jackym, as he is called by his clients owns two shops in Nairobi’s CBD and has three full time employees. He credits his curiosity to landing him in the online business space. After graduating from high school, Jackym got a job in the United Arab Emirates, a job he says paid his bills, but wasn’t enough to meet all his needs. It is while staying in the UAE that he interacted with Kenyan entrepreneurs who went there to purchase goods or who were on connecting flights to and from Turkey, Vietnam, China and Bangkok. “Some of these traders started requesting me to purchase goods for them in UAE. I would ship the products to Kenya by air or through shipping agencies and in the course of doing so, I developed an interest in the business,” Nairobi’s ‘kibanda’ he recalls. While in the UAE, he also developed the habit of shopping online. He says he traders make big would buy personal effects via platforms such as Alibaba and loved the ease and convenience that online shopping offered. “I decided to start saving so that I could set up my own business back at home. I saved KES2 million and in 2014, splash returned to Kenya with 1,000 kgs worth of assorted clothes and set up my first shop.” He says he travelled to China from UAE to purchase his first stock because China offered a variety of products at online affordable prices. Marketers are leveraging on the power Currently, he uses Facebook, of social media to advertise and sell their Instagram and WhatsApp to sell his products. He also uses WeChat to order products and services and pay for products especially from

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China and Imo app to order products from trader who is not selling online is missing Bangkok. out big time,” said Jackym, who plans on “I have a WeChat account that I use to expanding his business and even setting up buy goods. However, when it comes to shops outside Nairobi. making payments, I prefer transacting On a bad week, he says he makes a profit through a personal contact of KES30,000. On a good based in China, whom I pay one, this can go as high as a two percent commission KES100,000 and above. of the amount I am “I always make sure that sending,” said Jackym, my shops are well stocked while at one of his shops at so that when clients come Sasa Mall. to collect an online pre- Jackym is one of a ordered product or walk growing number of into they shop, they get the business people who urge to pick even more,” are taking advantage of said Jackym. increased internet access, Jackym believes that increased smartphone it is necessary to have a penetration and advances brick-and-motar store in a in technology to become central location. online merchants. “In this business, a >>> They hawk their products Online selling is an physical shop makes buyers online, advertising on interesting venture trust you more because established e-commerce because today we they believe that they won’t websites such as Jumia, have aggressive be sending their money to Kilimall, Masoko, Pigiame, young people who an impostor,” said Jackym. and Sky Garden. do not stock any Across the road along Majority of the online Kimathi Street, I also meet goods, have no merchants I interacted two other traders Emily with while sourcing this shops, but they have Wanjiru who sells human story advertise and take a consolidated strong hair wigs and Karanja orders for their products client bases - Jackym Minjire who deals in a and services via these variety of products. Wanjiru established platforms. travels to Dubai every two They also advertise via their own social months to buy her products while Karanja media pages especially on Facebook and just like Jackym, ships his products through Instagram. the Port of Mombasa. Current developments within the Kenyan Jackym, Karanja and Wanjiru all agree retail sector and the digital space show that that technology has contributed towards e-commerce has taken off, its momentum boosting their sells despite the fact that for growth is seemingly unstoppable while competition for the online shoppers is very its potential is huge. stiff. In Africa, Kenya is among the top “Online selling is an interesting venture three countries leading in internet because today we have very aggressive connectivity. According to data from the young people who do not stock any goods Communications Authority of Kenya (CAK), of their own, have no shops, but they have the country doubled Africa’s internet a consolidated strong client bases that trust penetration to stand at 89.4 percent in them hence they use this advantage to act as 2017 against an estimated population of 48 middle men. They come to our shops with million. their clients, their clients buy our products “The online platforms are growing and and we pay them a commission for every everyone has moved there. Right now, any item sold to their clients,” says Jackym.

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Fred Kirui, the proprietor of Selling a ‘piece AfrikaSokoni, saw an opportunity to sell handicrafts and other of Africa’ pieces of memorabilia to Kenyans living online abroad

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he secret to being A month into their new venture, a successful the two were invited to China for a entrepreneur discussion on sourcing for coconut T involves oil-based products. Thereafter, they spotting an entered into a partnership that unexploited opportunity and making saw them win a tender to ship a the most of it. consignment worth KES500,000. That is what Fred Kirui, a “Our suppliers have had to learn Strathmore University graduate did. and apply the quality standards His friends and relatives living expected by the Chinese market and abroad kept asking him to send we will export the first consignment them tea leaves, coffee, spices and of coconut oil-based products to other goodies from home. Instead of China in December,” Kirui says. seeing this as a nuisance, Kirui saw a They also inked a deal with a retail business opportunity and decided to chain in China for supply of Kenyan cash in on the interest. handmade leather products as well as “Kenyans living abroad look forward wood and stone carvings. to receiving simple products that Kirui and Fatt got a second tranche can make their stay enjoyable, even of funding from the same Dubai firm bearable. I realised that all Africans in June to expand their local source share this trait so it was a no brainer markets. With the funding, they when I partnered with my Gambian opened an office where they run all friend Ebrima Fatt to create an online aspects of their business. venture,” says the MBA graduate. To ensure quality and consistency Together they created AfrikaSokoni of products, the duo prefers to source in August 2017. their wares directly from craftsmen At his Pili Trade Centre office along and women from around the country. Mombasa Road, Kirui recalls how “We cut out the middleman to they first posted photos of handicrafts giving local craftsmen and small and which Kenyans bought at a premium. medium enterprises access to the When Kirui and Fatt created the global market,” Kirui says. e-platform, they lacked one essential Some of the popular products they component — money — to procure the sell include leather bags, beaded products. Kenyan flag themed bracelets and But lady luck must have been smiling leather jackets. on them when they won a Dubai IT A year after its launch, startups venture capital competition in AfrikaSokoni has opened an inward October 1, 2017. They used the funds to bound market for home appliances expand their business. where Kenyans can buy original products imported directly from manufacturers. High mobile penetration, fast connectivity and a digital savvy population have turned their business We have a deal with DHL venture into a success. Express for worldwide KES500,000 Since they launched, they have sold deliveries in a record Value of coconut oil based 350 hand-made products to Kenyans three days. This has in the US. products the firms plans to helped us to grow “We have a deal with DHL Express export to China our customer base for worldwide deliveries in a record especially in the US three days. This has helped us to grow our customer base especially in the US,” he says.

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Over the years, Kenya’s retail sector has experienced tremendous growth. Corner shops, which were the norm, are being replaced by mega shopping malls and virtual stores From dukawallas to Jumia

story is told of a 32-year-old banker who left Lahore in 1899 upon orders from his A superiors at the Bank of India. Like everyone else, Gurdit Singh Nayer sailed using a dhow across the Indian Ocean to Mombasa. The bank was expanding, so someone was needed to lay the operational structures in East Africa. From the coast, and together with guides, they traveled on foot into the interior of Kenya to Mile 326 (Nairobi). Here, Gurdit found ample business opportunities waiting to be exploited. He bought his way out of his contract with the bank and used the rest of his savings to travel back to Lahore. He went on a mass recruiting drive of artisans. With 50 men, he returned to Kenya and set up base in what was later to be the capital. The workers from India and Pakistan were used as cheap labour to build the Uganda Railway commonly referred to as ‘The Lunatic Express’. From banker to shrewd businessman, Gurdit started his own furniture store, becoming among the first proprietors in the local retail sector. (He later built the Nayer Building in 1913, the modern-day Kipande House) Following his success, many more Indians were willing to follow his footsteps. Instead

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of going back home after they finished building the railway in Port Florence (Kisumu), they decided to start their own shops in Nairobi. Referred to as ‘dukawallas’ (shopkeepers), they dealt in fast moving consumer Just like most goods, textiles, furniture and even agricultural produce. established business And although it had been met with fierce criticism by empires in Kenya, some in the colonial government, the railway opened up other areas of the colony. Key among these regions was these supermarkets Nakuru. The area was later to become the birthplace of are family brands that some of the most famous names in the retail sector. were started by their These include Tuskys, Naivas and Nakumatt. Although respective patriarchs Nakumatt has been in financial doldrums of late, it still and handed down to has a rich history that is intertwined with that of the their offspring aforementioned Tuskys and Naivas. “Just like most established business empires in Kenya, these supermarkets are family brands that were started by their respective patriarchs and handed down to their offspring and in one case, a sibling. The beneficiaries KES1.8tn expanded the enterprises to what they are today,” Value of Kenya’s retail says Wambui Mbarire, the CEO of the Retail Trade spending according Association of Kenya (RETRAK). to a 2017 survey by Mrs. Mbarire is referring to Naivas, a supermarket Procter & Gamble chain that was started when the late Joram Kamau gifted his younger brother, Mukuha, with Rongai General Stores, a retail shop in Nakuru. Under the mentorship of Atul Shah, Joram had established Tusker Mattresses (now Tuskys) in 1990. Mr. Shah was close to Joram because he had helped the senior Shah (Mangalal) when he was in trouble. Joram had bought a building in Nakuru Town on behalf of Mangalal after independence. Mangalal was afraid that if the structure was in his name, it would be appropriated and sold for less than it was worth by the Jomo Kenyatta Government which was nationalizing foreign-owned businesses as a way of empowering locals. After establishment, the three stores saw exponential growth in the 1990s and 2000s. This is until Nakumatt stagnated due to massive debt. Before stagnation, the retail chain had expanded to Uganda and Rwanda. Its 65 stores have now been reduced to a paltry four. Tuskys currently has 64 stores. According to the Tuskys Group CEO, Dan Githua, there are plans to open 100 more in the next three years. “Our growth strategy will be anchored on partnerships, technology and innovation. It will cost us at least Sh3 billion,” he added. Naivas, on the other hand, recently opened its 47th store in Mombasa County in September 2018. Another retail giant that has followed the same trend is Chandarana. Founded by Shantilal Mulji Thakkar, a dukawallah, he opened his first grocery store at >>>

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>>> the Highridge Shopping Centre in in Nigeria in 2012, the company set see something on OLX, there’s no way Parklands in 1964. up base in Kenya a year later. “When of telling if it’s a real or fake advert. “In the last 50 years, Chandarana has Jumia launched, it became the industry They should have invested in quality grown from one branch to eight; from standard for the sale of goods and control like they did for the vehicle 12 employees to 500; from 500 products services online. Although there are category.” to more than 20,000,” said Hanif Rajan, other platforms like Sky Garden and For cars, the site has the OLX the group operations manager. Kilimall, Safaricom’s Masoko is turning Champ, a service one pays for. “You A 2017 survey by Procter & Gamble out to be Jumia’s main competitor,” just have to quote how much you want (P&G) revealed that Kenya’s retail Steve Mbiu, a Nairobi-based website for your car, and then pay. They do the spending is KES1.8 trillion. “The developer explains. rest for you. People trust this service spending can be allocated across According to Steven, Masoko has a because of con artists and carjackers different channels; 30% supermarkets, strong financial backing from its parent who used to take advantage of car 67% traditional retail, and 3% special company. Moreover, the website isn’t sellers. However, this service cannot be channels. Overall, retail spending cluttered. “Masoko’s layout is different economically viable for all products.” accounts for 30% of Kenya’s GDP,” said from Jumia’s. The latter’s site is busy Steven says that OLX should also the survey. because they have all the product change their business model. “OLX The rapid expansion of the retail categories on the homepage. But, when ranks their ads according to which sector is driven by several shopping you log into Masoko, the only items you one has been posted first. People take dynamics including a tendency by Kenyan consumers to shop for goods in bulk. Besides, Kenya was reclassified as a middle-income economy in 2015. This is being evidenced by the shopping habits and rising consumerism. The potential of The sector’s potential has now seen e-commerce caught the foreign players such as Carrefour, Game public’s attention as a result and Choppies enter the market. of successful ventures like A new entrant in the retail scene is the electronic bookshop, internet ordering and home delivery, amazon.com which is changing the way people shop. A 2016 survey by Communications Authority of Kenya established that 39% of private enterprises are engaged see, are those on offer.” advantage of this by posting an ad now, in e-commerce. So, how does e-commerce work? and then re-posting it after a while. “E-commerce is any form of “E-commerce sites do not make their Although they have control measures, economic activity conducted over own products. What they do is to sellers still bypass them.” internet-mediated networks,” says Dr provide an online platform for people OLX maintain their site because it Njeri Kinyajui, an economics lecturer at to sell their products and services. They has value. “The site has a lot of traffic, the University of Nairobi. also deliver the product to the buyer.” hence they sell advertising space. “The potential of e-commerce caught Steven says that one can still have a They also introduced sponsored ads the public’s attention as a result of physical store, but still sell the same where one pays for their product to get successful ventures like the electronic products on an online platform. maximum exposure.” bookshop, amazon.com, and the Moreover, anyone can own an Figures from the Communications growing number of other internet- e-commerce platform. “All you need is a Authority of Kenya (CAK) indicate based retailers in the business-to- website or a social media platform for that the e-commerce market in Kenya consumer (B2C) e-commerce area. displaying your products. You can opt is worth more than KES4.3 billion However, business-to-business (B2B) to promote the site using online ads.” compared to South Africa’s KES54 e-commerce is growing more quickly Where others have succeeded, others billion. But, with the high internet than B2C forms of electronic trading,” have failed. A good example is Naspers- penetration, Kenya is best placed for a she adds. owned OLX. “They couldn’t guarantee digital commerce explosion. Currently, Locally, Jumia is the most popular credibility. If you see something on say Kenya is leading the continent e-commerce platform. Established Jumia, you know you’ll get it, but if you alongside South Africa and Nigeria.

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Local retailers Most Kenyan supermarkets are family-owned, employing a model of establishing stores near bus stops, targeting the large number of working-class shoppers using public transport. However, three foreign retailers have opened shop in the country.

UCHUMI Founded in 1975, Uchumi grew in prominence and stature. At 6 its peak, it operated about 40 stores in Kenya, Uganda and Number of outlets that Tanzania. Uchumi was placed under receivership in 2006, Uchumi has consequently losing regional footprint to only 6 outlets.

NAIVAS Formerly Naivasha Self Service Stores Ltd before rebranding 47 in 2007. . As of July 2018, Naivas Limited had 47 stores. They Number of Naivas stores have 4,600 staff. around the country

TUSKYS Tuksys traces its roots to a small grocery shop in Rongai, 6,500 2012 Nakuru started in 1970’s. Tuskys has over 6,500 employees. Number of Tuskys Its head office are located in Gami Properties Complex along Year when employees Mombasa road in Nairobi, Kenya. To date, Tuskys has 64 Jumia, an online supermarket, was established CHOPPIES in Nigeria. Choppies, a Botswana retailer entered the Kenyan market in 2016 March 2016 by acquiring seven of Ukwala stores. Presently, Year when they set up the retail store has 11 outlets in Kenya and 217 across the base in Kenya region. However, Africa still lags behind compared to Europe where e-commerce CARREFOUR accounts for 75% of all purchases. The French supermarket operates in 30 countries in Europe, 6 The lag is driven by lack of trust in online America, Asia and Africa. It opened its first store in Kenya – Number of Carrefour transactions. This has resulted in cash-on- Two Rivers Mall – in 2016. Carrefour has since opened five branches in the country delivery as the preferred payment option for more stores to date. online shoppers. Globally, e-commerce sales amounted to USD2.3 trillion. E-retail revenues are projected to grow to USD4.88 trillion by Shantilal Mulji Thakkar, the founder, opened his first grocery 1,200 2021. store at the Highridge Shopping Centre in Parklands in 1964. Number of employees With such promising prospects, should Today, almost 50 years later, Chandarana has 14 outlets and physical stores be worried? “Firstly, retail more than 1,000 employees. can only be rivaled by agriculture in Kenya. Secondly, nowhere in the world are online NAKUMATT shops in direct competition with physical stores. Even Amazon opened a brick and As of December 2015, Nakumatt was hailed as the largest 500 mortar store in the US. What they do, is store in East Africa with 65 stores in Kenya, Uganda, Rwanda Number of employees complement each other,” elucidates Mrs. and Tanzania, and over 5,500 employees. Today, Nakumatt Mbarire. has 6 stores and less than 500 employees.

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The steady growth of internet transactions has led to increased debate on whether, and how, Giving online retailers should be taxed

f you live in any are delivered via the Internet. of the cities in In today’s digital economy, East Africa, these types of services have unto I chances are become increasingly important that you’ve and common especially among hailed a taxi online. Ride-hailing the youth. business has transformed the The million-dollar question taxi business globally, offering is how do we tax these convenience and more money in organizations that render vital Caesar drivers’ pockets. services across online and across Odds are that you probably jurisdictions, yet, do not have subscribe to Netflix too. If not, physical offices locally? then you definitely must have There is a disconnect between used one of the many Google where value is created and where products. And if you taxes are paid. have teenagers, you Analysis of FANG, an acronym may have heard them of the four high-performing talk about streaming tech stock— Facebook, Amazon, music online either on Netflix and Google — shows solid ITunes or Spotify. earnings for shareholders. Either way, you or However, the current someone you know international corporate tax rules has subscribed to one have failed to keep up with the of these services that complexities of the modern global economy as they do not capture business models that make profit from digital services in a country without being physically present. Across the globe, economies have become increasingly service- based, and taxation has become considerably more complicated—especially when those services are delivered via the Internet. As a result, taxation of enterprises that use digital technology has been high on the political agenda of international fora. During the recent Kenya Revenue Authority Annual Tax Summit, academicians and policy makers explored taxation in a digital economy; casting

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the spotlight on the emerging digital The package includes both interim frontiers and their implications on tax measures, in the form of a 3% Digital administration. Services Tax on revenues, and a long-term Digitization has enhanced efficiency solution, introducing the concept of a in revenue administration through data There is a disconnect digital permanent establishment. driven decision making, this has in turn between where value is Speaking on the sidelines of the led to enhanced revenue mobilization and 4th Annual Tax Summit Ms. Corine created and where taxes more efficient customer service informed Mbiakectha, urged the government to by better data utilisation. However, this is are paid. focus on providing local solutions that just one side of the coin. answers the social local requirements According to Corine Mbiakectha, Oracle before, focusing on taxing the Kenya Managing Director, technology is Globally, a host of other countries, multinationals offering vital services an enabler of an efficient tax system as including Brazil, Colombia, India, and online. they help to reduce fraud and tax evasion. Vietnam are also planning or proposed The EOCD Interim Report also looks “For sustainable economic growth, new taxes on the digital economy. at how digitalisation is affecting other the tax base has to increase to enable Regionally, Uganda recently imposed areas of the tax system, including the tax administrators to collect more Social Media Tax on mobile Apps opportunities that new technologies revenue while lowering the tax rates,” Ms. including WhatsApp, Twitter, Facebook, offer for enhancing taxpayer services and Mbiakectha said. and Instagram. Tanzania also recently improving compliance, as well as the “For a tax authority to be efficient and passed a law charging bloggers an annual tax risks and evasion, including those be world class tax collectors, taxation fee for publishing online. relating to the blockchain technology that has to be information driven and data- A recent report from the Organisation underlies crypto-currencies. centric.” for Economic Cooperation and Overall, imposing taxes on transactions In March, the European Commission Development (OECD) noted that more conducted over the internet is a complex released two legislative proposals for than 110 countries will work to build a area. We should remain conscious of taxing of digital firms to ensure a fair and consensus on digital tax by 2020 within finding a long term solution for taxation efficient taxation of digital businesses the OECD/G20 Inclusive Framework on of the digital economy without stifling operating within EU. base erosion and profit-shifting (BEPS). innovation.

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ith globalization and in this era of commercialism, people are always finding an excuse to celebrate and shop. W Online retailers are capitalizing on this trend which has given rise to shopping extravaganzas with catchy phrases to boot. The shopping calendar now has Black Friday, Cyber Monday, Singles’ Day (which all fall in the month of November), Valentine’s Day, Christmas Day and such like days which have become an excuse to shop. Since we all love a good deal, online merchants have been capitalizing RETAIL on shopper’s hunger for knock-out deals. For example, this year’s Singles’ Day which is celebrated on November 11, helped e-commerce giant Alibaba net a record $30.7 billion in sales during the 24-hour online Bargain retail frenzy. hunting on the web Every year, shoppers look forward to online shopping extravaganzas such as Black Friday, Singles’ Day and Christmas Day to snap up goods at knock-off prices

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The apps help the retailers in collecting personal data which they use to customize their marketing messages for their clients. $30bn Amount of sales that Alibaba made in 24-hours on Singles’ Day, which is celebrated on November 11

Singles’ Day, which was started by students in China in 2009 to counter Valentine’s Day, has since grown into a month-long online shopping bonanza that peaks with a 24-hour sale on November 11. In November 2018, Jumia Kenya launched its annual Black Friday sale to six times more traffic on the site than last year. The sale has become so popular that collecting personal data which they use As such, the report says they consumers log onto the site in the to customize their marketing messages (retailers and brands) should make middle of the night waiting to scoop for their clients. it personal and stimulate consumers’ up mouthwatering deals and take part Each year, these annual online wants and needs. in flash sales where products go for as shopping sales dominate the news “Consumers are more open than ever little as one shilling. and social media pages and break new to receiving personalized messages “We went live on Thursday midnight records sales. But who really benefits? that stimulate them to consider (November 2) with great improvement Every year consumers come back potential product options. Retailers and on traffic to the site compared to last expecting bigger and better discounts brands that are able to leverage their year. We had six times more traffic while retailers continue to face customer data to stimulate demand compared to last year’s Black Friday,” logistical challenges of delivering the with personalized campaigns ahead of said Jumia Kenya CEO Sam Chappatte orders. This then begs the question, is the event will win a greater share of in a Business Daily interview. it worth it for retailers? Do they get as consumer hearts and minds,” the report “On the day of the launch we much sales the rest of the season? says. witnessed two times more sales than Retailers benefit from volume sales: Unlike loyal shoppers who will buy a in 2017 with strong performances in They cut prices which reduces their brand’s product all year long regardless appliances, televisions, smartphones profit margin and then capitalizing on of the discount, consumers only go for and grocery.” the number of sales. the best/deeply discounted product. To participate in these sales, the According to research from Periscope There is really no guarantee that they online retailers may require you by McKinsey titled The Black Friday will shop the brand again when there is to download their app on their 2018 Shopping Re-port: Consumers no discount available. smartphones, which ensures that a Are Eager, More Digital, And Willing As Christmas season beckons, shopper will get to interact and spend To Spend, retailers and brands should shoppers can only look forward to more more time poring through their sites prepare the right promotions for the great offers while retailers can focus on and end up making an impulsive right customers to ensure they attract making customer experience great so purchase. high number of shoppers and secure that they can keep coming back even The apps help the retailers in big basket orders. after the sale season is over.

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TRENDING NOW BEST SELLERS ‘Alexa, call my banker’ Voice search is revolutionalising To put it simply, it is having a advisory firm providing the retail landscape. Is this the next conversation with someone who is really insights, advice, and tools frontier for financial services? not there. A century ago, this might have for leaders in IT, Finance, been the definition of madness, but in the HR, and Customer or a certain generation of current world, this is a necessary passage Service estimated that Kenyans, a visit to the into the future. by end of 2018, 30% of banking hall had to be Recently, tech news platform The our interactions with F impeccably timed. Verge reported that Microsoft and technology will be through Get your timings Amazon formed a partnership to “conversations” with smart wrong and you were bound to spend integrate Cortana and Alexa to better machines. a better part of the day queuing and serve their customers and enhance “Product leaders at waiting for your turn in front of a tired their productivity. Amazon already has technology and service and irritable teller. a current partnership with Logitech, providers need to invest Now though, innovations within the which allows Alexa to be used in various now to improve currently banking sector have ensured that one vehicles on the market. limited voice interface,” the really doesn’t need to physically get into As most other things in technology, firm said. a bank to transact. And in December, the integration of voice technology in Locally, it seems firms the world will once again congregate in banking was predicted some years back. heeded that advice and London’s Marriott Hotel for the Banking In 2015, Gartner, a global research and there seems to be a rush Technology Awards. towards incorporating This year, industry experts say, that as many aspects of Voice Interface Technology with be all technology, including the the rave and the sooner big corporations incorporation of voice, make the shift, the better. into day to day business “Imagine a time when your bank can transactions. accurately predict your needs and go “Technology is moving ahead and recommend the most efficient very fast and a lot of the ways to make payments through the technology that is being simple command of your voice,” Agnes developed is customer-led,” Gathaiya, the Chief Executive Officer of Gaithaiya said, adding that Integrated Payments Services Limited the adaptation of voice and told Venture. “This is the next frontier.” other Artificial Intelligence Integrated Payments Services is technologies within the a subsidiary of the Kenya Bankers banking sector has come a Association. long way. IPSL launched PesaLink to provide “Initially we used to a secure, fast and efficient money depend on machine transfer system by tapping into the latest learning but we moved technological advances, such as the voice on to more sophisticated user interfaces. forms of technology,” she Voice user interfaces allow the user says. Machine learning to interact with a system through voice is a field of artificial or speech commands. Virtual assistants, Technology is moving very fast intelligence that uses such as Siri, Google Assistant, and Alexa, and a lot of the technology that statistical techniques to are examples of VUIs. The primary is being developed is customer- give computer systems the advantage of a VUI is that it allows for led” - Agnes Gaithaiya, the CEO ability to “learn” from data, without a hands-free, eyes-free way in which of Integrated Payments Services being explicitly programmed. users can interact with a product while Limited But as the appetite for newer, faster focusing their attention elsewhere. and more efficient technologies grows,

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30% Research my Gartner, says that by end of 2018, 30% of our interactions with technology will be through conversation’s with smart machines.

The best technologies may be built for us but if the customers are not willing to get on board then all this will be of no use - Bitange Ndemo, former Information PS

what solutions will these technologies with matching payment solutions,” she of the future solve apart from providing says. “It is imperative that we come up a better customer experience? with tech solutions that take care of the “The biggest conversation we are clients’ basic needs.” having right now is around security. With this forecasted growth comes How do we leverage on things such as opportunity. voice user interface and other forms “The biggest opportunity is around of biometrics to make transactions, something as rudimentary as getting customers and institutions safer,” cash of the streets and onto virtual Gathaiya says. spaces,” She says. Research from The Global Cyber But with the technology built, why Alliance reveals that one in three people are some of these AI solutions still believe biometric identification is either taking too much time catch on? just as secure, or more secure, than the “We still have to address cultural traditional system of passwords. orientation as well. The best “For the banks who use biometrics, technologies may be built for us but they will be able to offer layered if the customers are not willing to authentication in a consumer friendly get on board then all this will be fashion as well as different interactions of no use,” Bitange Ndemo, former such as account creation, payments, Permanent Secretary in the Ministry and withdrawals through voice of Information Communication and prompts,” The Global Cyber Alliance Technology says. “We have to ask says. ourselves how fast people will embrace And more importantly, Gathaiya some of the solutions we are providing.” believes this just the tip of the iceberg. Like all things tech, the future holds “The financial world needs to know so much more, with the possibilities where tech is heading and come up almost always impossible to imagine.

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TRENDING NOW BEST SELLERS The clash of giants Alibaba vs

Amazon

he world of business loves crowned the king of e-commerce? between the two is that Alibaba drama. Much like any good drama, there only provides an online shopping It’s what keeps are protagonists and antagonists to marketplace where other retailers sell T the markets alive, this story with critics of the impending and does not sell directly to customers, investors on the edge showdown having their fair share of while Amazon on the other hand, sells of their seats and economies buzzing. perspective on the matter. merchandise that it owns to customers In the current cycle of things, the They seem to be enjoying this the and also operates a marketplace and business world has its eyes set on an most as they anticipate an anti-climax distribution system. East vs West showdown with the advent in the horizon citing different playing However, the rise of Alibaba and of Alibaba and Amazon’s rivalry in the fields as a key differentiator between the Amazon into some of the world’s largest e-commerce sector. two business models. companies is a fete that cannot be The real question is, who will be For example, one basic difference ignored. Jack Ma and Jeff Bezos both

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have incredible stories to tell, strategies has built an empire worth $105 billion wholly embraced the unique experience to teach, economies to build and legacies and is undisputedly, the richest man in Alexa offers and are using the voice- to leave. the world. activated capabilities more to shop, to Currently, Amazon rests on three listen to music and to stream video on Early beginnings major pillars (though more are in the Amazon’s Fire TV. Jeffrey Preston Bezos, better known pipeline. There is Amazon Prime, which Bezos believes the success of his as Jeff Bezos, had established a path offers membership e-commerce bundled business strategy stems from his to success straight from high school as with elite digital media products, willingness to think long-term and take a straight A student, the valedictorian Amazon Web Services, which leads risks. of his class and early admission into the tech pack in cloud computing and In addition to investing in drone Princeton. He was set to become a Marketplace, Amazon’s third-party seller technology and self-checkout shopping theoretical physicist. business. infrastructure, he now has his eyes set However, he made his way to New on making it possible for more people York city to start a career in finance. to travel to space. It was during his time there that he Across the globe is Alibaba, got the Eureka moment to start Amazon another e-commerce giant in China after reading an article that stated that commanding the largest market share web usage was growing at 2,300 percent in the retail e-commerce space of 58.2% per year. The numbers were mind of all retail sales this year. boggling! Bezos believes the success of China is the world’s biggest His idea was to create something his business strategy stems e-commerce market with a significant that was impossible in the physical from his willingness to think lead on other markets including the – a bookstore with millions of titles, long-term and take risks. US, UK and Japan. This has enabled accessible by anyone beyond the physical foreign brands to enter the market proximity of the real store in the United with no need of establishing a physical States and beyond. presence. It sounded magical, hence the initial Launched in 1999, Alibaba was idea to name the company Cadabra. originally established to connect Following multiple rounds of $245,573 Chinese manufacturers with overseas brainstorming and consultations with The amount of money Bezos buyers. This was after a trip to the US a his lawyer, he finally settled on Amazon. borrowed from his parents to couple of years back when its founder, com which came in first place ahead of start Amazon Jack Ma, realised that Chinese goods Awake.com, Bowse.com and Bookmall. were lacking on the internet. com. The name Alibaba came to him while His rationale was simple, web listings Beyond that, the other strategy in a San Francisco coffee shop when were alphabetised at the time and employed by Bezos is growing Amazon he thought about the tale of a poor Amazon Amazon, being the name of the largest has been acquisitions. During the last woodcutter who discovers the secret river on earth, he believed the stars few years, Amazon made multiple door to a cave full of treasures by aligned here as he would go on to build acquisitions to strengthen its core uttering he words ‘Open Sesame’. the largest bookstore on earth. e-commerce operations. Some of these His analogy was that Alibaba would With the financial help acquisitions were strategic buys to open doors for SME’s to find their own of $245,573 from his parents, Bezos seal the deal in specific categories of treasure and with the support and started Amazon in his garage. When the market such as groceries with the investment of 17 friends crammed into a Amazon launched in 1994, it only sold acquisition of Wholefoods and getting tiny apartment, Alibaba was born. books which would be packaged and its share of the growing e-commerce The site let exporters post product delivered to the post office by Bezos sector in Middle East through the listings that buyers could browse, and himself. Next came music and videos. acquisition of Souq.com. it started to attract members from all It was during his interactions with One of the most exciting innovations around the world. By October 1999, customers that he got the sense that they from Amazon has been developed in the company had raised $5 million wanted more at the click of a button its foray into Artificial Intelligence (AI) from Goldman Sachs and $20 million and from that point, he ventured into and Machine Learning through Alexa from SoftBank, a Japanese telecom everything from diapers to data storage. – a handy personal assistant activated company that also invests in technology Fast forward, two decades later, Bezos through voice command. People have companies.

| 33 E-COMMERCE REPORT Search for products, brands and categories

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Major Shareholders History 16.92% 1994 Jeff Bezos is the major shareholder with 16.92% of shares. Other major Year Amazon was founded as Cadabra by Jeff shareholders include the Vanguard Group, Blackrock Inc., Price T.Rowe Bezos. It was renamed in 1995 as Amazon, Associates, FMR LLC and Capital World Investors. the online bookstore.

IPO Services and products Besides the range of services and products with the Amazon tag, Amazon has also $18 ventured into physical products (Alexa and Amazon’s first IPO was held on May 15 in 1997. The Kindle being the notable ones), partner shares debuted at $18 and raised $54 million. eCommerce business like Junglee.com, and even retail chains like Whole Foods.

Market Cap Operating Countries Employee Count Amazon has corporate offices, logistics and distribution centers all over the Americas, Asia, 427bn and Europe. 341,000 They have a market cap of 427 Billion, far beyond Number of employees. the market cap of Alibaba, which is 264.9 billion.

Percentage of main markets controlled Direct traffic 53% 2.2 bn Amazon alone accounted for 53% of online sales Amazon.com has a growth in the US in 2016. Apart from this, Amazon traffic of 2.2 billion accounted for 3% of the total retail volume in the US. per month.

Active buyers Brand Trust metric Growth Rate 310m 98.99 bn $136 bn Amazon has a total of 310 million customer Forbes estimates the Brand Value Over the past 4 years, from 2012 to 2016, Amazon’s accounts and about 44% of them start of Amazon as 98.99 billion USD, Gross Merchandise Volume growth (GMV) figures product searches on Amazon itself. figures have grown from USD 61 billion to 136 billion.

Innovations Payment platforms 65m 33m Amazon’s subscription service for expedited shipping Pay With Amazon, Amazon’s and freebies, Amazon Prime, has 65 million paying new digital payment service members who spend about 4.6-times more money on has 33 million users Amazon than non-Prime members.

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History Major Shareholders 1999 7.8% Year that Jack Ma founded Alibaba The majority shareholder is Softbank with 32.4% of in his apartment as a global the stock, followed by Yahoo with 16.3%, and then wholesale marketplace. Jack Ma with 7.8%.

Services and products IPO Apart from its ecommerce platform, Alibaba has venture in digital payment services $25b (Alipay), and cloud computing Alibaba’s IPO was held on September 19, 2014. The services. shares debuted at a cost of $92.70. The IPO raised $25 billion for Alibaba.

Employee Count Operating Countries Percentage of main markets controlled Alibaba have centers in China, Taiwan, US, UK, Italy, France, India, and Australia. However, their logistics wing ships to almost 50,092 everywhere- US, Canada, Belgium, Denmark, France, Germany, 11.18% Number of employees Alibaba, however, is a much larger player in their Italy, Netherlands, Norway, Spain, and the UK. home turf- China. The Alibaba group accounts for 11.18% of the total retail volume in China.

Direct traffic Active buyers 1.5bn 493 mn Alibaba’s traffic is split into its many online stores that include Taobao.com with a monthly volume Alibaba’s marketplaces had 493 million of 497.60M, Tmall.com with 261.50M per month, Alibaba.com with 108.60M per month, and the well- monthly users as of December 2016, with known Aliexpress.com with 633.90M per month. Alibaba Group’s traffic volume stands at 1.5bn per month. 443 million active buyers.

Brand Trust metric Growth Rate Innovations Alibaba’s most important and famous innovation 49.3 bn $547 bn is Singles’ Day, an annual shopping holiday in Alibaba’s growth rates have been higher- China that they created. By several figures, it is and that of the Alibaba Group the biggest shopping event in the world, even as 49.3 billion USD. they’ve grown from USD 171 billion in 2012 to about 547 billion in 2016. bigger than Black Friday

Payment platforms 400m Alipay, Alibaba’s payment platform is the world’s largest mobile and online payment platform with 400 million users.

| 35 KCBNEWS

BUSINESS Winning in the age of the consumer Today’s customer is more empowered because they can access information about products and services over the Internet. This means

eeping customers loyal to meeting their needs. Although this is crucial their brands is one of the to keeping a customer, it is only a fraction of Customer things keeping today’s customer experience. Customer experience experience is K chief executive officers encompasses their perception of a brand, the holy grail awake. a customer’s interactions with a company, for many a Given that products and services may be from start to finish. companies similar, companies are going out of their As such, customer experience is the holy today. way to give their customers an unparalleled grail for many a companies today. experience. There are many methods that companies Attentive CEOs are aware that modern are employing to attract and keep customers technologies have empowered customers. loyal to their brands. If a customer is not happy with a product One way is through loyalty programs, or service, they will communicate their which offers a combination of free gifts, dissatisfaction with their followers on social exclusive discounts, information on early media which allows competitors to pick product releases, and points-for-product them off with a better offer. redemptions. In years gone by, companies invested According to Steve Burnstone, CEO at heavily in offering great customer service Eighty20, a research and analytics company which is limited to assisting customers and in South Africa, retailers benefit most when

36 | KCBNEWS their loyalty programs partner with other industries such as banks, insurance firms or fuel stations. “These loyalty program are a proven way to not just How we reward our sustain market share, but to grow it. In most mature brands, over 85 percent of loyal customers growth comes from their Charles Arunda, KCB Bank Senior Manager, Partnerships most loyal customers,” says explains the bank’s Simba Points program a KPMG report on Customer Loyalty. Q: What are KCB Simba Points and how do stations like Shell, bookshops, In Kenya, supermarkets they benefit your customers airlines, beauty outlets and hotels. like Naivas, and Tusky’s A: KCB Simba Points is customer have loyalty cards that earn loyalty program designed to reward What are some of the key milestones of the customers points each time existing customers for various programme? they shop. Airline companies transactions they undertake This year marked the third year like Kenya Airways, who is including payments using KCB cards, since the program was started, with a member of the Flying Blue deposits, loans, internet banking, a growing number of customers loyalty program, have some mobile banking, KCB insurance, joining the programme. Today, the of the most advanced loyalty agency banking among others. program prides itself for onboarding programs. over one million customers What are the objectives of KCB Simba Points? translating to about 20% of the KCB Redeem miles Each program the bank invests Bank customer base. For example, KQ customers in is driven by three core values; Another key milestone is the earn points (miles) every time Inspiration; Simplicity; and introduction of more touch points they use the airline. Customers Friendliness. With KCB Simba to redeem Simba points for payment can redeem their miles for Points, KCB Bank was looking of utility bills (electricity, water, extra baggage allowance, beyond the traditional banking DSTv) and cash back to customers upgrade their class, pay for relationship between our customers accounts. The process is seamless hotel accommodation or rent a and the bank. and convenient. car with one of the Flying Blue The aim was to encourage partners. customers to opt for the best How effective are loyalty programs in Financial institutions such banking solutions and services. ensuring customer-retention? How effective as KCB Bank are also taking Likewise, the program helps is KCB Simba Points in this regard? the game to the next level. drive KCB Bank brand affinity and With a record-customer base Three years ago, the bank improve customer satisfaction. already enrolled in the program, launched the KCB Simba KCB Simba Points is proving very Points program to rewards How does KCB Simba Points work to increase effective on all fronts. Our customers existing customers for all the value for the bank’s customers? who are benefiting from program transactions they undertake. Customers get real value when have remained loyal to the bank and KCB customers accrue points they redeem points they have in many occasions referred family or for using internet banking, accrued over time. The programme friends to join. using the KCB mobile banking has entered into partnerships App or debit and credit cards. with service providers and utility What is KCB Bank doing to grow the In a research done by companies to increase the number program? Nielsen on Global Retail of avenues for point redemption. The bank will continue to build Loyalty-Sentiment, more than Customers can redeem points for on the strengths of the program. eight in 10 global loyalty- cash, utility bill payments and In this regard, we will prioritise program participants say it’s airtime. investments in innovation and very appealing to be able to technology to keep up with earn rewards regardless of Who are some of the partners? emerging trends and opportunities. whether a purchase was made Our key partners include in store, on a website or on a Safaricom and Airtel for customers Do you have a dream? mobile device. to redeem points for airtime, fuel Contact : +254 71108700 or +254 73218700 or +254 0711012199 [email protected]

| 37 KCBNEWS CUSTODY LOCKERS Safe custody for your valuables and documents

For an annual fee of between KES4,000 and KES8,000, a KCB Bank customer can rent a safe deposit locker to store jewelery, family heirlooms and legal documents

he KCB banking hall at branch manager. Delta Riverside does “Our typical client wants to keep not look and feel like their jewelery safe or to have their T what customers important documents, like title deeds are used to at the and certificates, in one place that they bank’s branches around the country. can easily access when they want,” he There are no tellers behind adds. bulletproof glass scrutinising forms, Having a safe custody box means ticking them, talking to customers and that valuables are stored in a place stamping forms. where they are secured from damage, The whir of currency counters is whether accidental or intentional, as replaced here by soft music and the well as theft or robbery. teller occupies not a counter behind a Safety lockers are not a service plate of thick glass but a room where reserved for the wealthy. Anybody, customers are served as they have a including institutions can rent out the cup of tea. boxes so long as they meet the terms and conditions. To get a safe custody box at KCB Notice that a KCB Bank customer Bank, and there are a number of them gives anytime they want to in branches around the country, you 24 hours access their deposit box must first be a KCB Bank customer. The boxes are also offered on a need basis, and that is why you are unlikely to find an advertisement or brochure Behind a deceptively simple door, in about them. a small room at the back that would There are three box sizes and easily pass for an ordinary storeroom, a different annual rate for each: is one of the unique services this KES4,000 for the smallest, KES6,000 branch offers – safe custody boxes. for the medium size and KES8,000 The boxes are basically a series of for the largest box. To get started, small lockers, each accessible via a a customer is required to deposit door with two keyholes on the front KES5,000, which is refundable at the and all within a strong, heavy and end of the service. immovable safe that looks like it can The customer then fills in a form withstand anything. with details such as names, account The offering for the boxes is rather number, branch, addresses – and the simple and straightforward: all the alternative withdrawal mandate. customer’s valuables are kept in a The alternative withdrawal mandate safe place, where they can be accessed is important as it details the only other conveniently and their safety is person that the customer trusts to guaranteed. access their custody box. “Our biggest selling point is the There are 31 custody rules and convenience and the fact that there is because these are many, it is important no tampering,” says Kevin Bwaley, the that the customer reads them keenly

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and understands what each means. At the branch, two bank employees The terms and conditions cover every aspect accompany the customer to the room where the and any possible issue that can arise over the use boxes are. The employee with the bank’s key Our typical of the custody box. opens the lock, the customer then opens their client wants The matters addressed range from the nature part of the lock and the door of the locker swings to keep their of the materials that may be kept in the locker, open. jewelery safe what happens should the customer die to how The customer is then left alone to store or or to have their the agreement between the customer and the remove their valuables. Before they leave, the important bank can be terminated in case of a breach of employee turns the key on their side of the lock. documents, like the rules. Once the customer has finished, they can then title deeds and The contents in the box are kept at the risk of lock the box and leave. certificates, in the depositor, meaning customers need to insure The terms also provide for what happens if a one place that their documents and valuables. A bank official customer disappears, or fails to communicate they can easily inspects contents to ensure they do not contain with the bank for two years. access when anything explosive, inflammable, harmful or They state: “The Bank may deliver the package they want. illegal in nature before sealing and signing by or pay the proceeds of disposal of the package to the customer. the Unclaimed Financial Assets Authority if fees To access the custody box, a customer is on the Safe Deposit Box remain outstanding for required to give 24 hours’ notice and on the two years and/or upon the depositor’s failure to material day, produce identification documents communicate with the Bank for two years.” and a Safe Custody receipt. They also have to However, the bank can open a customer’s box adhere to the banking hours. following a court order.

| 39 KCBNEWS

Q: What are Digital Financial Services? A: Digital Financial Services, or DFS, is an organization set up to drive the fintech strategy for the bank. It was established bearing in mind that technology in continuously evolving and transforming the financial landscape of the regions, especially when it comes to digital financial services such as payments.

Take us through the bank’s journey in terms of digital financial services The history of the bank has grown from building channels that customers can use to access banking services from ATM cards, to partnerships with digital payment platforms. The essence of any bank is to facilitate payments which is what the bank has been doing successfully for over 100 years. Technology is fueling our growth, creating new opportunities and disrupting the way business has

87% 87 per cent of our transactions occur on digital channels because customers are drawn to convenience Alex Siboe, KCB Bank Head of Digital Financial Services.

BUSINESS traditionally been conducted. KCB Bank has been adept to responding to the expectations of Driving the customers, especially since they want things to happen instantly, and I think that also informs the success of mobile digital payments payments. We’ve responded well and now, the bank has about 14 million customers; 10 million having come in revolution through technology. Alex Siboe, Head of Digital Financial Services at KCB Key milestones Bank is set on taking the digital payments success story We’ve cracked what the bank has been trying to achieve in terms of beyond Kenya to the other regions the bank serves. customer acquisition in record time. This, he says, will be achieved through development of Today we have almost 90% of our payments ecosystem, policy and regulation, and building customers through mobile phone, partnerships necessary for a successful Digital Financial we process around 100,000 loan Services implementation. He looks back at the journey the bank has taken and forecasts the future.

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applications daily and have Your Customer) in that we’re blockchain technology to see seen our customer engagements able to attach the identity of a which verticals can be supported increase. customer’s phone to guard against and how we can prepare attempts in reverse or social ourselves for the future. Vooma is the What have been some of the challenges in engineering. engine that this journey? We’ve also introduced a call What’s new on KCB M-PESA? we are using Competition increases daily back feature and a security SMS Since the new platform to drive this with the entrance of more agile that is able to read and identify went live, the uptime has agenda into players and advanced technology the customer. been delivering a six sigma the future and and systems. performance of the variability that’s why There are also regulations that Who are some of the payment integration perspective as proof point of we’re investing are becoming more and more partners the bank has collaborated with streamlined processes in order to in people and stringent in terms of control, the and why? ensure that the desired output of getting the right changing customer dynamics and The success of the payments our processes is achieved every technology. security concerns as well. space lies in partnerships. time. However, we’re on our toes Partners such as Western With loan processing, the and that’s why we’re investing Union, Moneygram, digital IMT’s value has doubled since we went in advanced technology and in such as Transfer to or Send Wave, live, the platform is faster and training of our teams in order to Mastercard, VISA, UnionPay, and customer experience has been change the way we work so as to players in the telecoms sector have enhanced. serve our customers better. all contributed to our success. Customer experience is We are also working more enhanced and processing is closely with the regulator and What are some of the trends the bank is faster. are studying our customers investing in? more intently to be able to Digitization is here to stay and Give us some insights on Vooma. cater to their specific needs and it will definitely cause further KCB Bank has a rich history preferences; operating in the age disruption. of innovation and we want to of customization necessitates this. As a bank, 87 per cent of our lead this transformation from the transactions occur on digital front. How does the bank handle the security channels because customers are Vooma is the engine that we risks that come with payments drawn to convenience. are using to drive this agenda into integration? Beyond that, big data analytics the future and that’s why we’re Security concerns will continue will help us understand our investing in people and getting to challenge the industry because customers in more in depth the right technology. people are investing more manner. As it is right now, we It’s the future of our banking brainpower into navigating already have a view of where, technology as a bank that is systems to gain access to funds when and how they use their building platforms, products and illegally. money. experiences that will advance our In that regard, we’ve bolstered The next step for us is to service delivery efforts in ways our cyber-security measures to convert these statistics into that positively impact the lives of ensure that we protect ourselves behavioural information that we our customers. and our customers. can leverage on when coming up From the network perspective, with new products and services. What will it take to exceed customers’ we invest in firewalls which guard As a bank, we’re interested in expectations in a digital world? anyone against entering our integrating with social media, so We’ll achieve this by focusing network. as to have a full view of customer on the customer journey that From a database perspective, trends and lifestyles to help us we offer when they are in the we use logins whereby we control serve them better. process of accessing our financial and have a view on who is We also want to integrate services. Focusing on the user’s conducting what activity at any the use of biometrics for face story will help us in matching given time. recognition and fingerprints to their expectations to our output From a customer perspective, boost security. and in delivering new, simpler and we’ve enhanced our KYC (Know We’re also researching on friendlier processes.

| 41 ES TO V C I A S I L T PURSUITS P Africa’s best-kept secrets for travelers t is the holiday season again, a time when most people will go Kenya for holidays to relax and unwind with family and friends. To help you narrow down your travel options, we have curated Wileli House some of Africa’s best hidden gems. This year, strive to take the For those who love to ‘indulge in nature’, Wileli House and Wildlife road less travelled for an unforgettable experience. Conservancy is just the place I for you. This hideaway offers an unforgettable escape to one of the most tranquil places in Naivasha. The conservancy also teems with wildlife such as buffaloes, giraffes, hippos, monkeys and zebras and has been described as a bird watcher’s paradise. Wileli House prides itself in offering exclusive and luxurious hospitality. There are six African inspired chalets all spaced out from each other, which means it will never be crowded. Each of the chalets has a private balcony with a heated jacuzzi which allows you to soak under the African skies. The rooms are spacious and artistically decorated to blend in with the outdoors. Guests can enjoy their meals on the beautiful manicured lawn outside the main house or at the restaurant. Guests can also enjoy guided nature walks with accredited Kenya Wildlife Service guides and boat rides at Lake Oloiden (smaller adjacent lake) or Lake Naivasha.

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Kenya Samatian Island Samatian Island is a private island which sits on Lake Baringo, which is known for its breathtaking sunsets, spectacular array of bird life, and is home to the Njemps fishermen. Despite its magnificence, little of the tourist traffic from Naivasha and Nakuru makes it as far as Baringo, which makes Samatian the ultimate relaxation destination. The island is home to the Samatian Island Lodge, a small and exclusive Kenya establishment. There are many activities to indulge in while at the island. Maiyan Villas You can take a boat trip in traditional Sesse canoes to view the prolific birdlife. Lake Baringo is one of the two fresh water lakes in the Rift Valley, the other Maiyan Villas, whose name is and conferencing. being Lake Naivasha. The lake is home borrowed from the Maasai language For those who enjoy the outdoors, to numerous fish species which means meaning blessing. there is cycling, fishing, horse riding visitors can try a hand in fishing. You can Located about 20 kilometres north and other water sports available. In also throw fish for fish eagles, offering of Nanyuki, the Maiyan Resort offers a addition, guests of Maiyan enjoy the spectacular photographic opportunities. five star experience with the backdrop spectacular outdoor dining with a wide Nature lovers can enjoy walks the top of of Mt Kenya, the Aberdares and range of African cuisine. Samatian to see the birds and plant-life. Lolldaiga hills. Maiyan provides a range of The owners of the island also organise The resort is spread across 146 accommodation options from shared sundowners on the beach where you can sit acres of land which is said to be villas, to private ones. Maiyan was and have a drink, light a fire as you watch shaped like a piano. Maiyan offers a feted as Africa’s top Luxury New the sun sink over the horizon. wide range of amenities such as the Hotel in the 2018 World Luxury Hotel spa, a sports centre, a jogging trail Awards.

| 43 PURSUITS

Zanzibar Pemba Island-

Pemba Island is a hidden gem, and part of the Zanzibar archipelago off the East African coast. Often referred as the ‘Green Island’ due to its lush green hills and fertile land, Pemba Island is the perfect destination for travelers seeking less crowds, great dive sites, untouched coral and abundant marine life. A trip to Pemba Island would not be complete without a visit to the Mantra Tunisia Resort which has a floating unit in the Indian Ocean, with three levels including an underwater room offering a spectacular Matmata underground houses view of the marine world. The floating unit is located in the middle of a living coral reef making it perfect for In the heart of the Sahara Desert, and further artificial caves are dug to be people interested in diving and snorkeling. bordering the Mediterranean Sea lies used as rooms. The two means of getting to Pemba Tunisia, a country known for its ancient Matmata is famous in a way that are by air from Arusha and Zanzibar in archaeological sites. fans of Star Wars may be familiar with. Tanzania or on a two-hour ferry ride from On the southern side of the country, It is the home to Hotel Sidi Driss - the Zanzibar. there is a small town called Matmata actual set for one of the shows Star’s – with a population of slightly over Luke Skywalker’s family house. 2,000 people. Here residents live in The underground caves are a major traditional underground structures tourist attraction. Anyone wishing to which are constructed by digging travel to Matmata would need to catch one large pit in the ground, and then an 8 hour flight from Tripoli.

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Sao Tome Principe Bom Bom Island Resort

São Tomé and Príncipe is a Central Africa nation that lies close to the equator, and has a population of slightly over 200,000. Near the northern coast of the Island of Principe - one of the main islands of Sao Tome Principe - lies Bom Bom Resort. ‘Bom Bom’ means good in Portuguese, and this is all and more than what this island is about. On one side of the Island is the restaurant, bar and marina which are connected to the bungalows and pool area by a beautiful wooden walkway. While in this little paradise, you get to enjoy beautiful rock pools and an array of tropical fish. Libya Gaberoun Lake

At The Gaberoun Lake is an inspiring natural old village on the other side. art formed deep in the Libyan Desert, which On the one side of the lake sits a tourist managed to survive the Great Sahara’s harsh camp with a souvenir shop run by the dessert conditions and sand effects throughout the age community. Gaberoun is approximately seven metres For people looking to enjoy the Libyan deep and lies majestically amidst sand dunes- dessert, October-May is considered the best with palm trees on one side and the ruins of an time to visit since the temperatures are milder.

| 45 PURSUITS

Lesotho Sani Top Chalet

The Kingdom of Lesotho is a beautiful The paths lead to the Drakensberg landlocked country surrounded by rivers and escarpment and at the border of Lesotho mountain ranges. With a population of about and South Africa lies Sani Top Chalet, a 2.3 million, and encircled by South Africa, the small rustic establishment, and home to the country is truly a beauty to behold. highest pub in Africa which stands at 2,874 Lesotho is great for adventure and metres above sea level; a very well-kept outdoors lovers. Hiking, mountain biking and secret. drives while enjoying the graceful views of Access to this pub is only through off-road the Drakensberg mountains and snaky paths trucks and travelers are required to carry through the Drakensberg Park is a lifetime their passports; and travel between 8am- experience. 4pm when the border post operates.

South Africa Kagga Kamma The Kagga Kamma Nature Reserve is located in the southernberg mountains in the Western Cape, in South Africa, which is a three-hour drive from Cape Town. In the reserve lies a gem - The Star Suite, a newly constructed haven best suited for outdoor lovers. This is a room like no other- an open air room set between rock formations. The suite, which accommodates two people at a time, offers a spectacular view of the wilderness and open skies for constellation enthusiasts. In addition, the residents of the Star Suite get to enjoy an amazing outdoor shower, toilet and a rock pool. For a relaxing time, the suite also has a lounge and a fireplace which make the stay all the cozier and romantic. While staying here, guests can enjoy various activities such as cycling, quad biking.

Tell us about an exotic destination you have visited in Africa. Contact: [email protected] 46 | Perfectly in tune with your lifestyle

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