PENRESA FOCUS ON KENYA

NOVEMBER 2019 EDITION

in partnership with

H.E. Uhuru Kenyatta Gov. Patrick Njoroge Hon. Joseph Mucheru Mr Jeremy Awori

KENYA - Africa’s Cradle Of Innovation A Hub For Investments In Africa In 2008, Kenya debuted Vision 2030, a comprehensive plan to revolutionise and transform the country into a middle-class, highly industrialised and digital economy.

ision 2030 is aided by President Kenyatta’s greatly enhanced the country’s rating on Big Four Agenda, which focuses on four the ease of doing business index where major pillars of improvement: protecting Kenya soared ahead of the competition, food security, increasing manufacturing, leaping an astounding 56 positions in 2018 ensuring affordable housing and provid- and placing it at number 61. In light of this ing universal healthcare for all in order to huge achievement, Kenya aims to assume improve the lives of every Kenyan citizen. its place among the Top 50 countries most Eleven years since its introduction, Kenya conducive for business in 2020. V is now enjoying the positive results of an John M. Ohaga, Managing Partner economy that is highly innovative, diverse of Nairobi-based TripleOKLaw firm, and developed in terms of ICT, making it has directly witnessed the significant a hub of investment opportunities in the evolution of Kenya’s legal framework that African continent. allows this transition to be possible, and Among its first moves in implementing now he feels that all the necessary steps Vision 2030, Kenya liberalised its to foster even more economic growth have economic policy, recognising the legal been put into place. “Kenya is working very and political obstacles of the past and hard to improve its investment climate. working to make transitions easier so that Our legislative framework, our political investors and foreign companies could situation and our policies have been come to the country, invest and send their addressed. Kenya appears very good for profits overseas. This liberalisation has investors coming in,” Ohaga states.

NOVEMBER 2019 FORBES AFRICA | 3 brought great attention to the country’s wealth of untapped resources. Base Titanium, the first foreign direct investment in Kenya’s mining sector, accounts for 65% of all mineral production in the country. Simon Wall, Acting General Manager and External Affairs Executive of Base Titanium reinforces the reality of these opportunities in the sector: “The mining sector is both huge and small at the same time and Base Titanium has presented an opportunity to Kenya to be used as a marketing tool for advertising and investment in its mining sector as a demonstration that mining is a viable option. Kenya is traditionally an underexplored mining jurisdiction, which means there is a lot of opportunity.” Today, Base Titanium embraces the Big Four Agenda to push the government’s plans further by working to build schools, hospitals, dormitories and dispensaries for the communities in which they are present. Another main factor that secures Kenya as a hub for investment is its highly KENYA - Africa’s Cradle Of Innovation skilled workforce, which is considered As a result of these modifications, one of the most educated and innovative In partnership with Kenya has been chosen by many in the continent. This labour force is key to multinational companies including Google, sustaining continuous economic growth. Microsoft, General Electric and IBM as Sebastian Mikosz, CEO of Kenya Airways, www.penresa.com the main hub for their African operations. believes that the secret to the Big Four [email protected] Facilitating the presence of these Agenda and Vision 2030 lies in job worldwide brands is guaranteed to change creation. Mikosz states: “We will achieve the global image of Kenya into a country Vision 2030 by continuing to grow the This report is sponsored and produced by PENRESA that is optimal for nurturing business and GDP. If people have jobs, those jobs can and did not involve the reporting and editing staff of investment. make careers and people in Kenya will any third party. In addition to the improvements in legal invest in education. My support for the This report would not be possible without the regulation, the government’s vision seeks Big Four Agenda is to create more jobs assistance of Ms Kanze Dena. to improve the quality, quantity and cost- because once you do, all other things will effectiveness of public infrastructure come. More investors will come.” THIS REPORT WAS POSSIBLE THANKS TO: with the adoption of a public/private Furthermore, Kenya Airways is partnership framework. This framework working to accelerate the tourism sector will help to push forward the initiative by by expanding their networks and as a enabling growth in all sectors. Judith A.M. result, increase their capability to carry Nyakawa, Senior Deputy Director at the more passengers. To achieve this goal, Public Private Partnerships Unit (PPPU) all of the objectives of Kenya must come explains: “Our mission is to promote full circle. Mikosz explains, “In order to economic transformation for shared increase the number of passengers, we growth through the implementation of need to increase GDP per capita. This is prudent economic financial policies at the closely linked to travel. As long as the GDP national and continental level. We are able per capita is not there the market will not to mobilise private financing and leverage grow. It is also linked to the necessary on effectiveness, efficiency and innovation, investment in infrastructure.” As a which is very common in the private sector.” result, the continuous efforts of the legal, Entities such as PPPU aid the country in mining, transportation and infrastructure providing continuous support, improving sectors all come together to ensure that public infrastructure and aiding sectors Kenya has empowered all components of such as energy, education, healthcare and the foundation of success and prosperity construction, endeavours which promote for the years to come. existing and incoming businesses even With a newly liberalised economic policy, further toward success. improvement in public infrastructure, new In combination with the favourable discoveries of valuable and rare resources, investment climate, the mining sector in expanded transportation options and a Kenya has opened the doors for investment motivated workforce, Kenya has all the opportunity in its discovery of rare earth tools in place to become Africa’s capital of minerals only a few years ago, which has innovation, opportunity, and investment.

4 | FORBES AFRICA NOVEMBER 2019 His Excellency Uhuru Kenyatta Ensuring A Prosperous Future For The Cradle Of Innovation KENYA - Africa’s Cradle Of Innovation nder the leadership of His Excellency Uhuru Kenyatta, Kenya Agriculture is a major driver for economic growth and em- is realising the goals of Vision 2030 and the Big Four Agenda. ployment in Kenya. How can enhancing this sector reduce These blueprints will assist Kenya in reaching middle- poverty and create welfare gains? income status and improving livelihoods for all Kenyans, not Even with impressive advances across the economy, agri- to mention placing them on the map as a global competitive culture continues to be the bedrock of Kenya’s development player. Penresa had the pleasure to speak with His Excellency and the key to creating equitable and sustainable growth for U to discuss Kenya’s successes and where the country is our people. We cannot achieve significant growth without mod- headed in the near future. ernising its agricultural sector. We have made progress in modernising agriculture in Kenya improved its ease of doing business index by 56 Kenya but we have not yet reached our full potential. We positions last year and intends to reach the top 50 by are revolutionising the way we do agriculture, from how 2020. What government actions were responsible for this we develop policy at the national level, to how we allocate improvement? resources in our farming households. Through our 10-year The improvement was aided by reforms in establishing Agricultural Sector Growth and Transformation Strategy business, construction permits, acquiring electricity, access to (ASTGS), achieving our agricultural goals will ensure food credit, paying taxes and trading across borders. We have rev- and nutritional security, improve incomes, lower food olutionised government services and have increased invest- costs, and increase employment, particularly for women ment and development in the energy sector, embraced ICT and and youth. These are our absolute priorities. made legal reforms to help fight corruption and ensure a se- cure business environment. Kenya has a positive investment For the FORBES AFRICA reader and the discerning investor, climate where businesses can start, grow and thrive. why is now the best time to invest in Kenya? Kenya has the largest, most diverse economy in East and What other works are in motion to help realise Vision 2030? Central Africa, serving as the regional hub for logistics and air Vision 2030 was launched in 2008 as the development transportation, financial services, ICT innovations, and interna- blueprint to transform Kenya into a newly industrialised, tional media coverage. We have a clear vision for economic de- middle income country by the year 2030. To help achieve velopment. Our focus is on implementing more business-friend- this vision, my administration is focusing on the Big ly policies and reforms to reduce investment costs and enhance Four Agenda, which prioritises Food Security, Affordable the sector’s global competitiveness. Housing, Manufacturing and Universal Healthcare as the We are a signatory to the Africa Continental Free Trade Area four major pillars of economic growth and the wellbeing of (AfCFTA) which gives other continents opportunities to trade our people. The Big Four Agenda is a fast-tracking strategy with Africa as a trading bloc. For this reason, we invite foreign for Vision 2030 with priority reforms being implemented investors to seek opportunities with Kenya as an entry point to over the next five years. East and Central Africa and to the larger African market. The Big Four also functions as a development compass in I assure investors that we continue to pursue a free enter- our engagement with investors and partners. Private partners prise economy and aim to build the strongest industrial base add value in agri-industrial production to generate jobs for our in the sub-Saharan African region. With a sound economic base well-skilled workforce and deploy appropriate technologies and a well-trained workforce, Kenya is ripe for foreign invest- to provide modern, affordable housing for our population. We ment opportunities across various sectors including infrastruc- expect these private partnerships to turn the four priority areas ture development, agro-business, tourism, energy, manufac- into mighty engines of wealth and job creation. turing, ICT and financial services.

NOVEMBER 2019 FORBES AFRICA | 5 Ministers Round Table Working With The Private Sector To Innovate The Future

Providing Investment Opportunities Through Innovative Advancements Kenya is focused on innovation and partnerships with the private sector to continue expanding and improving its economy and investment opportunities.

Penresa sat down with: Hon. Joseph Mucheru, Ministry huge drive on tourism. Most of our wildlife is found of Information and Communications; Hon. Najib outside protected areas, so it is imperative to empower Balala, Ministry of Tourism & Wildlife; and Hon. John local communities through community-driven conser- Munyes, Ministry of Petroleum and Mining to discuss vancies. The National Wildlife Strategy (NWS) 2030 that KENYA - Africa’s Cradle Of Innovation how Kenya is facilitating its growth and investment aims to enhance the capacities of local communities opportunities. and promote participatory land-use planning so that we may conserve Kenya’s natural beauty. How is the government building partnerships with the private sector? Hon. Mucheru: We empower SMEs. The president Hon. Munyes: The government has established a has directed that 30% of procurement must go to Hon. Joseph legal framework that governs the oil and gas sector small businesses. We are also working to find ways Mucheru, and ensures that legislation will develop upstream. to provide unsecured loans for them. Interest rates Ministry of The private sector now has a framework where they have been fixed at about 14% but we are working Information and can work with the government to develop the sector with Central Bank to improve them. We have a project Communications together. This law is key in strengthening of the oil and where SMEs can borrow up to 250,000 shillings at gas sector. 9%, allowing affordable access to working capital. We believe SMEs are the engine for growth. Hon. Balala: Kenya has a conducive business environment created by the government and the Why is now the best time to invest in Kenya? people. Kenya has a diverse economy as the regional Hon. Munyes: We have proven that we have hub of East Africa. This is evident from the number of potential in hydrocarbons, minerals and energy. We multinationals and NGOs that have chosen Nairobi as have a legislation and an independent judiciary that will their regional hub, including Google, General Electric, protect investors. It’s a country that is geographically LG and Coca-Cola. positioned for business. If you invest here, we protect your investment and there is potential for results. Hon. Mucheru: We have forms in place to support Hon. Najib Balala, small businesses that seek assistance from the Hon. Balala: We have a very positive forecast, Ministry of government, such as WhiteBox. If you have an idea driven by a vibrant services sector, currency stability, Tourism & Wildlife that you think can work in government, submit it and low inflation, low fuel prices and a growing middle all state departments evaluate it to see where these class. The number of investors in the tourism sector innovations can fit. If there is a place for them, we keeps growing steadily. Confidence in Kenya as a support those companies. We try to help people sell destination has improved, with 20 major international their innovations. hotels scheduled to open in the next four years. There are opportunities to develop accomodations within How is your sector utilising innovation to expand? national parks within the park’s management plans Hon. Munyes: Kenya recently sought consultancy guidelines. for a gold refinery feasibility study. This refinery will create thousands of jobs within the region, positively Hon. Mucheru: Our economic growth is robust with impacting housing and food security. This follows the a stable exchange rate, some of the best skills and Big Four Agenda, which is committed to ensuring that an intelligent workforce with a good work ethic. We Hon. John Munyes, people have good health, food, and improved livelihoods. have a digital citizenry; I challenge other countries to Ministry of Petroleum compare with the way we use technology. We have and Mining Hon. Balala: The ministry seeks innovations in mod- implemented regulations and laws to protect citizens’ ernising wildlife conservation in Kenya, which has a data, their businesses, and the environment.

6 | FORBES AFRICA NOVEMBER 2019 Dr Patrick Njoroge Governor Of The Central Bank Of Kenya

The Stars Are Aligned For Kenya The Central Bank of Kenya has been working to keep improving the country’s impressive figures in investments and financial inclusion.

Founded in 1966, the Central Bank of Kenya has since, with the banks working on strengthening been mandated with managing the country’s their business models in order to become more monetary policy, as well as regulating the financial resilient. There will be shocks in the future, so they sector and its payment system. The CBK plays a need to get out of their comfort zone and be ready key role in the promotion of financial inclusion. for future shocks. A monitorable consequence KENYA - Africa’s Cradle Of Innovation We had the pleasure to sit with current Governor of this phenomenon is the acquisitions that took Dr Patrick Njoroge to hear his thoughts on the place, and continue to take place, since then. We achievements and the role of the Central Bank at are now working in the direction of strengthening this pivotal moment in Kenya. governance and customer-centricity. We are also pushing them to be more innovative, ensuring a lot Formal financial inclusion in Kenya has risen of growth around the sector. One thing is for sure: from 26.7% in 2006, to 82.9% in 2019. What were Kenyan banks are expanding into the region, and the main drivers of such an improvement? have already expanded (not just in Uganda and That change has come primarily because Tanzania) and they are going to expand even more. “People need to of the transformation in mobile banking. Moreover, Kenya is a very exciting and interesting Current penetration rates of mobile banking destination for external investors due to its macro- take a long-term are 105%, bringing unbanked people into the stability, economic potential, diversification and financial system. If you go anywhere now, the as a launch pad to the rest of Africa. I am thinking bet on Kenya first payment platform of choice is the mobile about AfCFTA, which is the second largest free trade device, cash comes in second. In that regard, the arrangement of all time (the first is WTO), Kenya is because Kenya is transformation of the payment and the diffusion a natural hub for that trade. There is presently a lot on the move. We of M-Pesa was pivotal. Another reason behind this of excitement from Europe (France, for example) change is agency banking; the strong presence of and FDI ensures strong, portfolio investments, due are marathon- agents has allowed financial inclusion to expand. to the fact that we have been pushing government From our perspective however, it is not only about securities. In early May, the government went on runners. We are inclusion, it is also about expanding the number a roadshow, i.e. the Eurobond roadshow. They put not going to slow of services offered on those platforms, as well out US$ 2.1 billion, and ended up getting US$ 9.5 as improving their quality. For instance, think billion: more than four times the amount. This down.” about the possibility of SMEs in getting financing shows that the Kenyan brand has a great pull and through these platforms. investors are keen.

A strong financial services sector is essential For the FORBES AFRICA reader and the discerning to enable and assist foreign investors. What is investor, why is now the best time to invest in the current financial situation within the country Kenya? and how is Kenya perceived in international Now the stars are aligned in Kenya: now the markets? opportunities are there and are being supported with In 2016, the Parliament decided to focus upon transparency. Besides, the world is more fractured. providing affordable credit, with improved services The only way to deal with this is to become linked to and equal opportunities for all. It passed a law to our resources and, in our case, to be very regional. set a cap on lending interest rates and this had So, this is the time to benefit from that mindset of the effect of waking the banks up from their ours. What was just a market of 25 million people, is Central Bank of Kenya lethargy. The banks needed to deal with a better now 250 million and more than one billion in AfCFTA. Haile Selassie Avenue P.O Box 60000-00200 liquidity management and a better governance. So, that is why the time to come to Kenya is now, and Nairobi, Kenya We have been on this transformative journey ever not in a few months’ time. www.centralbank.go.ke

NOVEMBER 2019 FORBES AFRICA | 7 National Bank of Kenya A Bank Committed To Empowering Kenyan People And Businesses

claiming a big space of our overall banking business.” It also partners with county gov- Helping Kenya Achieve ernments and organisations, such as the Kenya Ports Authority and Kenya Revenue Authority to allow SMEs to have easier ac- New Economic Heights cess to services and collaborations. The National Bank of Kenya has been a major contributor to important develop- By Boosting Financial mental government initiatives, such as Vision 2030 and the Big Four Agenda. With a focus on sustainability and financial in- Inclusion clusion, the bank has assisted in areas of the housing market, agriculture, and health infrastructure. NBK considers corporate The National Bank of Kenya first opened social responsibility as being very import- in 1968 as a bank owned and operated ant, as Musau stated, “Our bank is not just by the government of Kenya. about business, it is about sustainable busi- KENYA - Africa’s Cradle Of Innovation ness.” NBK banks with hospitals throughout Today, it exists as a commercial bank Kenya, which includes the largest hospital that works closely alongside the Kenyan in East Africa: Kenyatta National Hospital. government to foster the economic de- They partner with various hospitals to pro- velopment of the population and Kenyan vide healthcare and help with ways in which businesses. Speaking on the wide-rang- they carry out business. In terms of edu- ing functionality of the bank, the former cation, the bank has donated computers to Managing Director & CEO, Wilfred Musau, schools to ensure children have access has stated: “The bank today offers all to innovative tools to help them achieve major financial solutions tailored to a success. The bank is committed to helping broad spectrum of customers; it is a fully “Kenya has made great those with disabilities access business sup- operational commercial bank, offering strides in welcoming port services and lines of credit to create services from corporate banking, to retail equality for everyone in the banking sector. and business banking, diaspora banking, international business, The government of Kenya has been very sharia-compliant solutions for Muslims welcoming to foreign direct investments and SME banking.” investment and trade into by creating policies and reforms to foster In 2019, the National Bank of Kenya is the country while making these investments. The National Bank of focused on technology and new ways to as- Kenya has made it easier than ever for for- sist the bank to move forward, while simul- Kenya more prominent on eign investors to open bank accounts in taneously focusing on the empowerment of Kenya. The bank has a fully-fledged dias- Kenyans, making banking more accessible the international scene.” pora banking unit dedicated to providing to everyone and making banking process- seamless banking services while creating es easier. This has led to a drastic rise in Mr Wilfred Musau, a friendly investment environment. Overall, financial inclusion from 26.7% in 2006 up Former Managing Director Kenya has made great strides in bringing to 82.9% in 2019. With the shift in 2006 to- in international business, investment and wards more consumer focused initiatives, & CEO of National Bank trade into the country while making its the bank has developed their client services presence grander on an international scale. and advanced credit solutions to be better of Kenya Ltd. When is the best time to invest in than ever. “We are now reaching out to the Kenya? According to Musau, it is right now. customer to tell us what they need, and “The government has done a lot to develop that change was deliberate,” stated Musau. it provides many services and products the investment climate, which has made Through the advancement of telecommuni- to help them flourish. The bank provides it strategic in sub-Saharan Africa and the cations via digital banking and in particular modern solutions for this growing sector most dynamic, flexible and grown up mobile banking, the National Bank of Kenya through cash management, trade working economy in East Africa.” has seen great changes in not only how capital platforms, and bridge loaning to suit many people are able to access banking but their business needs. The bank has part- how they do their banking. nered with start-ups in order to innovate The National Bank of Kenya under- their solutions and platforms, investing in stands that SMEs are crucial to the growth support for SMEs. Musau states, “We have National Bank Building Harambee Avenue, of Kenya’s economy, and for that reason seen a growth trajectory, the SMEs are now P.O BOX 72866 - 00200 Nairobi - Kenya

8 | FORBES AFRICA NOVEMBER 2019

Afreximbank Focus On Kenya

Dedicated To Aid Kenya’s

KENYA - Africa’s Cradle Of Innovation Export Development

enya has proven that its dedication to the Vision 2030 and Big Four Agenda is getting successful results. Sectors such as tourism, ICT, ecommerce and finance have been revamped and are energised for a bright and prosperous future. The ICT sector’s establishment of SEACOM undersea fibre optic cables, which brought quality, reliable internet to the country in 2009, have created opportunities for startups, local businesses and SMEs to stand strongly as major players in the Kenyan economy. As sectors have consistently improved, the country is now poised to expand their reach as it looks toward exporting more goods. In conjunction with the government’s plan to convert Kenya into a middle class country K with a digital economy, the African Export-Import Bank (Afreximbank) has invested in Kenya and developed plans to support its companies. Afreximbank is the most prominent pan- African multinational financial institution committed to financing and advancing intra- and extra-African trade. The heart of their plan lies in the Fund for Export Development in Africa (FEDA) which will provide seed capital to African companies. FEDA is focused on key sectors, including agri-business; manufacturing; consumer and retail; financial services; technology; travel and tourism; transport and logistics; and industrial parks. As a part of the bank’s Equity Investment Programme, it will provide seed capital to companies in Kenya and across all market segments in Africa, but will Afreximbank has be especially focused on small and medium-sized enterprises to help them build a solid foundation in the economy. become a very A recent feasibility study conducted on behalf of Afreximbank identified an underfunded area that was not conducive to intra-African trade. In response, FEDA was established to offer important player in the a solution in providing equity and leveraging foreign direct investment to assist in closing development and support that gap. The ultimate objective of FEDA is to supply equity capital and related support services to SMEs and operators in sectors that work in international trade, with a special of Kenya’s economy. focus on activities that deal in intra-African trade and value-added exports. For example, Kenyan companies such as AfricaSokoni, an online retailer, is a prime example of the type of In support of business that will benefit from this initiative. The increase in ecommerce has been facilitated Vision 2030, Afreximbank by a push in financial inclusion, with many consumers making mobile money payments through M-Pesa, making FEDA and the exportation of goods a more successful venture. seeks to empower The fund has been established with an initial US$100 million commitment and will also expand Afreximbank’s offerings to include crucial equity investments to promote and Kenya’s economy support trade within Africa. Investment is set to begin this year and is targeted to further invest US$10 million, with the intention to raise an additional US$450 million in FDI. to promote national As the Kenyan government continues to strengthen its economy through the Big Four and international Agenda and Vision 2030, Afreximbank has aligned itself as an invaluable ally to help build small businesses and finance industries in order to enhance trade-related services that will export and trade. reformat the way in which the economy flows.

10 | FORBES AFRICA NOVEMBER 2019 Betty Korir CEO Of Credit Bank

By Focusing On Local Communities, Credit Bank Leads The Way

Founded as a financial institution in 1986, Credit Bank is considered one of the best commercial banks in Kenya.

What was the original vision of the group CSR plays a major role in most organisations and how did it assist in your success? these days, especially within the banking The bank was founded locally with over sector. How is Credit Bank empowering 50% local shareholders. The bank prides communities in Kenya? itself in providing local solutions to Kenyans. Many of our solutions have been through KENYA - Africa’s Cradle Of Innovation We focus on SMEs as the main drivers of the the implementation of financial inclusion. economy. We provide tailored Trade Finance Kenya is known for its innovative tech start- solutions that are specific to SMEs. ups, and we have utilised modern technology We are proud as a bank to have received with our improved mobile app. In terms of numerous awards, including the 2018 KBA fiscal economy, you can open accounts Survey, which ranked the company as the anywhere. If you look at penetration into the best in providing customer-focused financial economy, everybody banks and with us, you solutions. We also received an award for can bank through your mobile device. structured trade finance. Our structured Other CSR activities are through our “It is not trade solutions allow SMEs to do business work with impoverished populations. Our in a manner that is not typical of cultural CSR is engineered on mental coaching and about size, blending: risk assessments, shifting the risk economic empowerment. away allows us to better assist the clients. CSR is one thing, but it must be sustainable. the reason we For instance, we have connections with local What are the strengths of the bank that schools and we bring students here where accomplished make it so successful and set it apart from they can ask questions and learn. We go to our goals the competition? communities and give food and we support What distinguishes Credit Bank Plc from them in whatever way we can. was through the rest is our market positioning. We work The reason we got an award for CSR is with frontier commodities as part of the because we look for opportunities to integrate innovative effort to come up with a logical framework with the community. There is a programme solutions.” and sustainability. In fact, we received the employing youth to do hydroponic farming, Sustainability Award in the energy sector and we help finance this. Credit Bank earlier this year. As part of our Big Four has employed 1,000 people through this Agenda strategy, we are looking at the bigger programme. We are giving them a revenue to aspect of impact issues and renewable get employment and sustain themselves. energy space. We are very keen on ensuring that our For FORBES AFRICA and the discerning clients are supported and maintained investor, why is NOW the time to invest in for a deeper share of their wallets. Other Kenya? institutions go in different directions, but Kenya has an affordable labour market. We we stick to our SMEs. We want to give them don’t rely on mineral extractives and we are financial literacy to help them build business an attractive, diversified economy. Our laws models. We have an E-Hub that works on are relaxed for foreign investors to come and Credit Bank Plc incubation, fostering ideas and networking. invest directly and easily. As far as Credit Bank, Mercantile House, Koinange street In this way, we help SMEs and the E-Hub the banking sector is another gauge to see PO Box 61064 separates us from other institutions. It is not stability of a country’s economy. If you look at 00200 Nairobi, Kenya [email protected] about size, the reason we accomplished our the Nairobi stock exchange, we are doing quite www.creditbank.co.ke goals was through innovative solutions. well, and our regional location is a hub. Contact: +254 709072000

NOVEMBER 2019 FORBES AFRICA | 11 Barclays, Part Of The Absa Family Spearheading A Bold African Vision

The bank has launched several initiatives to keep improving financial inclusion, an Investing In Innovation area for which Kenya is internationally regarded as a model. Barclays Bank of Kenya’s efforts include financial literacy And Digitalisation programmes and plans to assist young people and students in their first steps in the job market. Furthermore, the bank has To Serve The People put digitalisation among its top priorities: “We partner with local IT companies,” says Awori, “We have created an app called Timiza And Businesses Of Kenya which allows you to open and transact an account and send money for free. You can also save, borrow and buy micro insurance Barclays Bank of Kenya is on the verge on the app. With that functionality, we of completing its transition to Absa reached three million customers in one Group and wants to ensure Africa’s year, one million of which in the first two KENYA - Africa’s Cradle Of Innovation voice is heard. months. Digital is the way to go.” Besides, in a country renowned as Barclays Bank of Kenya is part of Absa Group, a pioneer of tech innovation, modern an African brand with global reach, and is a technology is a key asset for any company key player in the financial markets of twelve looking to expand its business, and African countries that employs nearly 40,000 Barclays Bank of Kenya doesn’t shy away people across the continent. “We come with a from the challenge: “Technology allows heritage of understanding of the economies you to meet customer needs and improve and the communities in which we live and customer experience more efficiently and operate,” says Jeremy Awori, Managing cost-effectively. It enhances your control Director and CEO of Barclays Bank of Kenya. and provides you with data that enables “That gives us a competitive advantage,” “With a stable you to take more efficient decisions,” says says Awori. “Being a pan-African bank is Awori. “We set up a Chief Data Office, which quite different than being a multinational, or macro-economic uses high-level analytics to develop new a subregional group. We are a top three bank environment, and products or target new needs.” In the past, in all our key markets,” he says. “We have the Awori adds, opening an account required products and the capabilities needed in each significant investment two or three days. Today it’s all done in the market, and as we manage the separation span of one minute. from Barclays we will continue to invest and in infrastructure, we “Kenya,” Awori adds, “has a good reputation. bring in new systems and capabilities.” There are opportunities for investors, and Absa Group, which registered a KSh 58 have the recipe for future the financial system is strong and stable.” billion (R8.3 billion) in headline earnings in business and economic With good GDP growth, a young and English- the first half of 2019, was the main African speaking population, a strategic geographical banking voice during the World Economic growth.” position and growing infrastructure, Kenya Forum in Davos. “We had to make sure we has all it takes to be a hub for East Africa and had a voice coming straight from the African Jeremy Awori, beyond. “We are very excited about Kenya’s continent,” says Awori, “Often, when it is left to prospects,” adds Awori. “As one of the oldest others, the message about Africa is negative. Managing Director and and most entrenched banks in the country, Absa, in its capacity as significant player in CEO of Barclays Bank we want to partner with anyone interested many markets across the continent, wanted in investing here. We have the perfect mix of to change the narrative and present the reality of Kenya people, understanding of the community and of doing business and sustainable banking in global good governance standards.” Africa. “After all,” he says, “many of the world’s fastest-growing economies are in Africa.” range of SMEs,” explains Awori, “From micro Barclays Bank of Kenya’s extensive to medium to large enterprises, with a knowledge of the local market led it to wide range of products including lending, develop a wide range of services to support financing and trade solutions, transactional and leverage SMEs, which represent 90% banking, risk-management solutions, of Kenya’s private sector and employ 50% hedging and investment instruments. We Tel: +254 (20) 3900000 Cell: +254 (732) 130120 of Kenya’s workforce. “We serve the whole offer holistic solutions.” Cell: +254 (722) 130120 [email protected]

12 | FORBES AFRICA NOVEMBER 2019

Ecobank Enabling Safe And Secure Money Transfers Among 33 African Countries

Rapidtransfer: The Quickest Way To Send Money Across Africa The first pan-African money transfer and payment service owned by an African bank.

Used daily by hundreds of thousands of people across Africa, affordable and transparent pricing (0-3% charge) means Ecobank’s Rapidtransfer service is the fastest, safest and most better value for you and your beneficiaries at the best reliable way to send and receive money through 33 African exchange rate. countries. Transfers can be made in several ways, maximising user convenience. 2. Rapidtransfer in-branch Transfers can be made at any Ecobank branch or Rapidtransfer 1. Rapidtransfer app agent. You don’t need an Ecobank account, anyone can use it. The Rapidtransfer app, available for Android and iOS devices, You’ll just need an ID and the details of the beneficiary. Fill in enables you to easily and instantly remit money with just a few the remit form available in all branches, give it to the teller and taps to anyone living in any of the 33 African countries where you’re done! Ecobank operates. Recipients can collect the money at any Ecobank branch or You’ll just need to download the app from Google Play or App Xpress point by presenting their ID as indicated by the sender KENYA - Africa’s Cradle Of Innovation Store. To activate the app, you’ll need your physical passport, a and answering the security question indicated by the sender. selfie and a valid VISA/MasterCard card issued by any bank in the world. 3. Rapidtransfer online The app delivers funds directly to any M-Pesa account, Rapidtransfer is the only pan-African money transfer that Ecobank account or local bank account in countries where enables you to easily send and receive money online. You’ll just Ecobank operates. Funds can also be withdrawn in cash need to register on the website and enter your personal info through any Ecobank Agent location (Xpress points). The and a valid ID.

14 | FORBES AFRICA NOVEMBER 2019 K.C. LI Group Chairman Of SBM Holdings Ltd

Gearing Up As A Regional Bank Across The Asia–Africa Corridor

After two years of operations and an inorganic growth path, SBM Bank Kenya is consolidating and emerging as a strong player serving some 200,000 clients.

SBM Bank (Kenya) Limited reaches out to How does SBM use modern technology to expand ever increasing numbers with its 53 branches its business? across the country. What is the group’s vision Innovation and digitalisation is one of SBM’s for Kenya? strategic pillars, whilst SBM Bank Kenya is SBM Kenya has a strong retail and SME base, which uniquely placed as a regional bank with a local KENYA - Africa’s Cradle Of Innovation it will continue to grow through convenient digital touch. We are considering the exportation of channels and excellent customer service. Backed by Kenyan expertise to our other entities and even the strength of the group, it will also increasingly tap leap-frog in certain geographies. into the corporate and high net worth segments. The bank is currently very liquid and has the potential to What is the role of companies such as SBM when grow the high yield asset book whilst building a sound it comes to the Big Four Agenda? fee base. The synergy with the other group entities The Big Four project offers an opportunity for should also help generate fee income. We shall focus SBM Bank Kenya to play a vital role from a financial on adapted solutions that fit in this booming and inclusion aspect. Through our presence in the Kenyan “As an African vibrant market and are positioning SBM to become a market, we are already supporting some 200,000 strong top tier bank in Kenya. persons – be it for housing projects or job creation in and as one of SMEs including initiatives around food security. As What is SBM doing to empower SMEs in Kenya? for housing, affordable healthcare, and food security, the directors of SBM Bank Kenya has been intentional in playing we have had several engagements with county Afreximbank, a critical role in impacting the gender economy governors and the various projects they are working especially in the SME sector. SBM has an active on that are aligned with the Big Four Agenda. I can see the women markets programme with a dedicated changing team designed to drive empowerment, education East Africa has become the biggest regional and protection of the overall financial status for attractor of FDI, with Kenya leading the way. For the dynamics and women. The programme is run in collaboration with FORBES AFRICA reader and the discerning investor, knowledge partners such as the Global Banking why is NOW the best time to invest in Kenya? firmly believe Alliance & Goldman Sachs, financial access partners Unlike in the past, East Africa and Africa as a in the strong such as IFC & Heva Fund and market access whole are not wholly dependent on foreign direct partners such as She Trades under the International investment from Europe and the West, whereby potential of Trade Centre & AWEP, a platform launched off AGOA tariffs and trade inequalities lessened the ability legislation.SBM is also a signatory of the UN Women. of local producers to compete in international and Africa and downstream in local markets. Kenya.” How does the Bank empower communities in As an African and as one of the directors of Kenya? Afreximbank, I can see the changing dynamics and SBM Bank Kenya is entrenched in the Kenyan firmly believe in the strong potential of Africa and Kenya. community through its considerably sizeable Today, Africa is witnessing an emerging urban branch network. We are financially supporting middle class which shall be a catalyst for growth, sustainable initiatives within the country. For establishing Kenya as a strong and large regional SBM Bank (Kenya) Limited instance, SBM Bank Kenya is contributing to the player while contributing to around 50% of the region’s Riverside Mews Building, Riverside Drive maintenance of water catchment areas after the GDP. Moreover, it has a growing consumer market, P.O. Box 34886 - 00100 recent drought that has affected far-flung areas with a population of more than 40 million. Strategically Naiobi, Kenya such as Marsabit. This is in line with SBM Group’s well positioned in Africa with good connectivity, wide Telephone: +254 709 800 000 +254 730 175 000 positioning as the leading CSR organisation in market access, skilled and educated population, Email: [email protected] Mauritius which we intend to inspire from. Kenya is ideal as a strategic partner. Web: www.sbmbank.co.ke

NOVEMBER 2019 FORBES AFRICA | 15 Public Private Partnerships Unit (PPPU) Bridging The Gap Between Public And Private Sectors

Empowering Kenya’s Economic Transformation through PPPs

By carefully screening incoming projects, the PPPU works to ensure that public/ “Our mission is to promote private partnerships are prepared to economic transformation at succeed. the national and continental level.” With the development of its PPP regulato- ry framework, Kenya has worked with the Judith Nyakawa, World Bank to lay the foundation for the Director of Public Private successful establishment of public/private KENYA - Africa’s Cradle Of Innovation partnership projects. The Director of Public Partnerships Unit (PPPU) Private Partnerships Unit (PPPU) says, “Our mission is to promote economic transfor- “PPPs will turn Kenya into mation for shared growth and development through the formulation and implementa- a middle-income country in line tion of prudent financial and economic PPP with Vision 2030.” policies at both the national and county lev- els of government.” Through these efforts, Eng. Stanley Kamau, the PPPU works to ensure that Kenya’s Ag. DG – Public Investments & Vision 2030 plan becomes a reality. The government of Kenya has adopted Portfolio Management PPPs to enhance the quality, quantity and cost-effectiveness of public infrastruc- plementation of healthcare PPP projects “We are enablers in the President’s Big Four ture delivery and services by leveraging while the city of Nakuru is looking towards Agenda. We contribute to improvements private sector financing and expertise. As the development of an integrated solid in the road, health, and infrastructure sec- the technical arm of public private part- waste management system to improve tors. As a unit, we are continuously looking nerships, the PPPU procures resources for water and sanitation. Nanyuki is also in the for alternative ways to raise funds so that future projects, mobilises private financing process of implementing a Water Supply government development budget can be and implements projects appropriately. Project. used to meet other needs. We are helping “We want to support the delivery of the Big Eng. Stanley Kamau, Ag. Director to close the infrastructure gap. We want to Four Agenda,” says Nyakawa. “We always General of Public Investments & Portfolio bring in more resources.” conduct upfront due diligence on potential Management, explains the importance In previous years, government pol- projects in order to determine whether it is of PPPs for the future of Kenya and its icy has shifted toward a development affordable and delivers value for money to people: “By adopting global best practice, approach that is more focused upon its the government if undertaken. This is why assembling well-capacitated institutions citizens. Under the Big Four Plan, which we are very thorough in the process of to drive the PPP agenda, putting in place is focused on Healthcare and Nutrition, evaluating projects.” The Unit’s attention to a consistent legal framework, building a Manufacturing, Affordable Housing and detail is an important asset to help inves- robust catchment of promising projects Food Security, the administration is de- tors succeed. and having an array of interested investors voted to the well-being of every Kenyan The PPPU has multiple projects in the en- in local and international capital markets, citizen. Public Private Partnerships will be ergy, education, healthcare, transport and PPPs appear poised to send Kenya into a crucial players in aiding the government to infrastructure sectors. One important PPP middle-income country in line with Vision achieve both Kenya’s Vision 2030 and Big project that is currently under construc- 2030.” According to Kamau, partnerships Four Agenda. tion is Lot 33 of the Roads Annuity project with private investors tackle the problem of which spans 91km between the Ngong- infrastructure development. Public Private Partnerships Unit Kiserian, Isinyaand Kajiado, Mashuru, and Ultimately, the role of the PPPU is to Reinsurance Plaza, 6th Floor, Isara Roads. At the county level, projects provide support to Contracting Authorities Taifa Road, Nairobi span various sectors and are at different looking to implement PPP projects and to P.O.Box 30007 - 00100 Tel.: 0774400866 levels of implementation. Nairobi, Kisii and facilitate the structuring and implementa- www.pppunit.go.ke Nyamira counties are considering the im- tion of PPP transactions. Nyakawa says: [email protected]

16 | FORBES AFRICA NOVEMBER 2019 KENYA - Africa’s Cradle Of Innovation

NOVEMBER 2019 FORBES AFRICA | 17 Resolution Insurance Increasing Digitalisation And Inclusion In A Changing Society

Leading An Insurance Revolution Resolution’s offer is carefully designed to meet the needs of private and business clients.

Established in 2002 as a medical insurance provider, the “Mental illness is a key issue in today’s world and former Resolution Health underwent a 360-degree revo- we are providing psychological and psychiatric support lution in 2013 and became Resolution Insurance, diver- to help organisations deal with that.” Resolution is sifying and restructuring its offer of insurance products. investing to update, digitise and automate its systems, Today, Resolution is working to increase the allowing customers to have a greater deal of control on penetration of insurance services in Kenya and its their products of choice: “In Kenya, we traditionally had surrounding region. According to Managing Director annual plans, but now we are moving towards monthly Alice Mwai, the first challenge is building customer or even daily plans,” says Mwai. trust: “Typically, insurance companies are not trusted “Kenya is very advanced in terms of internet and mo- in the market, because they do not design products bile penetration, so we are taking advantage of that to that necessarily respond to the client’s needs,” she Alice Mwai, increase customer engagement.” According to Mwai, the says. “We are positioning ourselves to be the exception Managing Director of government’s Big Four Agenda will open up new and inter- KENYA - Africa’s Cradle Of Innovation by talking to customers, simplifying the language that Resolution Insurance esting opportunities for companies such as Resolution. we use in our material and providing 24-hour support “Increasing manufacturing and housing would be a great with our call centre.” insurance opportunity. Moreover, a lot of awareness is being created The company has also developed a number of products that cater to around the need for the middle class to buy health insurance products: the needs of investors and companies, enabling them to provide their that creates a market for us.” This wave of change, she adds, makes employees with high quality healthcare services. “You need to make Kenya the right place to invest in East Africa: “When you look at the sure that your workforce comes to work at 100%,” explains Mwai. growth and the plans that are underway, you see a good economy.”

18 | FORBES AFRICA NOVEMBER 2019 Dr Sanjay Advani Director And CEO Of Beta Healthcare

Creating A Healthier Tomorrow Through technology and medical advancements, Beta Healthcare’s core vision of caring for all has taken them across the African continent.

Beta Healthcare is a pioneer in Kenya, developing Rwanda, Burundi, DRC, Zambia, Nigeria, Tanzania, lifestyle brands that are serving crucial needs Ethiopia, Mozambique, Malawi, Ghana, French West of the sub-Saharan Africa population. Penresa African countries, Qatar and many others. We are in spoke with Dr Sanjay Advani, Director and CEO of a very advantageous position to touch many lives. Beta Healthcare about the company’s role in the Kenyan economy and how they embody their How does your Research & Development KENYA - Africa’s Cradle Of Innovation motto: “Caring for all.” Centre demonstrate commitment to expanding business with innovative products? What was the original vision of the group and Opened in 2012, Beta Healthcare’s R&D Centre how did that assist in your success? is a state of the art manufacturing facility in As our motto states, caring for all people, line with WHO GMP guidelines. We focus on new not just those in the most populated areas. product development to meet our customers’ We believe in integrity, innovation, excellence, requirements. We analyse products internally to commitment and teamwork. These values have ensure they are the highest quality and safest “Kenya’s always been the foundation of our company and products for our customers. Technology transfers have supported our growth year after year. Our have helped Beta Healthcare to expand its product geographical objective is to deliver high quality, safe and cost portfolio with new medicines. The Research and effective medicines. We have maintained this core Development Centre facilitates that growth. position as vision to reach customers, patients and hospitals a port for in most remote parts of the country. Could you describe some of your CSR activities that empower communities in Kenya? landlocked What is the importance of partners and investors Our CSR activity adheres to our message when it comes to providing an affordable, high- of caring for all, even the environment. Beta countries quality brand in different countries in Africa? Healthcare has supported children’s homes, creates Our joint ventures and tie-ups allow us to hospitals and clinics. We also participate in Dr supply essential medicines to the population Nelson Mandela Day, World Environment Day and many export to fight against infectious diseases. The recent World Water Day. Aside from these special events, acquisition of global brands has strengthened every day we ensure compliance to environmental opportunities.” our place in the market by widening our product regulation and we promote healthcare education. portfolio in terms of therapeutic range. We have an efficient sales and marketing team that For the FORBES AFRICA reader and the discerning complements our market growth in the region. investor, why is now the best time to invest in Kenya? All of these elements combine to allow us to Kenya has a prime geographical location. It is reach more remote communities, even beyond the hub of business. We have improved economic Kenya, that would otherwise not have easy stability, GDP, infrastructure and logistics. Our local access to these medicines. air, rail, sea and road connectivity has improved tre- Beta Healthcare mendously, which facilitates trade with neighbour- International Limited How are you working to expand your products ing countries. Our local and national public organ- Mogadishu Rd Off Lunga Lunga Rd internationally and increase exports? isations embrace technological advancements to Industrial Area Kenya’s geographical position as a port for land- better serve the citizens. Our air service has opened P.O. Box 42569 - 00100, Nairobi locked countries creates many export opportuni- doors to new destinations worldwide, which creates Tel: +254 (0)20 265 2042 / 89 +254 (0)735 99 2699 / 2599 ties. We are situated in Nairobi, the regional hub more opportunities for foreign investors in Kenya. + 254 (0)724 25 7072 / 73 for distribution of products in the SSA region. For The country’s government policies have improved. www.betacare.co.ke this reason, Beta Healthcare products are easily From every direction, I see improvement. There is exported to our neighbouring countries, as well as really no better time to invest in Kenya.

NOVEMBER 2019 FORBES AFRICA | 19 GA Insurance Quality Services For An Evolving Market

Innovative Insurance Products, Made In Kenya GA keeps expanding, tailoring its services for the dynamic Kenyan environment.

One of the oldest and leading insurance companies With 90% of Kenya’s private sector being made up of in Kenya, GA Insurance Limited has undergone an small and medium businesses, the empowerment of extreme but rewarding makeover in the past decade, SMEs is a key step to unlock economic growth, and GA completely reshaping its identity and strategy to be has tailored its services to provide small organisations better equipped to offer quality services in a changing with the support they need: “SMEs suit us very well market. “We went from being a small entity to being because their size is in line with our philosophy,” one of the biggest underwriters”, says Vijay Srivastava, explains Srivastava. “Going forward we will be focusing GA’s CEO. “We have grown elevenfold compared to more on retail and microinsurance. We are working with 2006. We’ve quadruplicated our employees. We also aggregators in retail and micro insurance agencies.” started expanding: we entered the Tanzanian market GA, Srivastava adds, welcomes the focus put by the five years ago, and soon enough we’ll be in Uganda, Vijay Srivastava, Big Four Agenda of the government on key areas such and in other countries after that.” CEO of GA as manufacturing and healthcare: “These are two areas KENYA - Africa’s Cradle Of Innovation “This kind of impressive growth would not have Insurance Limited of growth for GA. Manufacturing is connected with the been possible without technology and IT systems”, property business, in which we’re leaders in Kenya and Srivastava adds. “We have dedicated software for our health East Africa, and medical insurance has been the driving force of the insurance offer, so that people on the field can connect to our insurance sector for most of the past decade. We’re also looking into system and access all patient data and records. Risk management microinsurance to create packages for the agriculture sector. Kenya and internal audits are connected as well. Furthermore, we have provides excellent platforms for any kind of business: it is the hub been among the first ones to sell travel insurance online.” for any activity in Eastern, Central and Southern Africa.”

20 | FORBES AFRICA NOVEMBER 2019

Hu Bo Chairman Of CRJE East Africa

Building Kenya’s Infrastructure To Foster Sustainable Future Development The major investor and accredited Best Foreign Contractor, CRJE East Africa, is continuously looking for investment opportunities in Kenya.

You have been active in East Africa since The title of our report is “Africa’s Cradle of 2000, working on several important projects Innovation” for Kenya’s brilliant usage of ICT through the region, Kenya included. What are to leapfrog development and set the path for your current expansion plans for the country? African development. How is CRJE making KENYA - Africa’s Cradle Of Innovation We set up our Kenya office in 2014, and the most of modern technology to expand its undertook our first project here in August 31, business in the region? 2015 to build a modern shopping centre of more We always utilise the most modern meth- than 40,000 square metres at Karen, which is ods, technology and equipment in the con- now famously known as Karen Waterfront. Since struction sector to maintain our competitive- then, we have settled nicely in Kenya, currently ness. For example, we have applied the most working on about twenty projects. Kenya is sophisticated high performance marine con- now our second home and we have decided to crete C72 and the biggest cable for the longest build our own office and supporting facilities cable-stayed bridge – the Nyerere Bridge - in “We are looking to serve our clients more efficiently. We’re also Tanzania. These are the leading technologies looking for the investment opportunities in the in the world. at Kenya not only dynamic market to increase local employment and generate more revenue for the country. You have operations in Rwanda, Kenya, as a country for Uganda and Tanzania as well as satellite Bilateral relationships between China and offices settled in Malaysia and Zimbabwe. the construction East Africa have been rapidly increasing What role does Kenya play in your company’s sector but also in recent years. How does your operation total operations? in Kenya and other East African countries Kenya is our key market for investment and as a destination contribute to enhance this relationship and construction. It’s East Africa’s largest economy foreign investments further? and the leading financial sector in the region, to invest in We’re enhancing the relationship by rein- possessing a legal system that works well with hence, we have forcing our friendship with Kenyan people, and the private sector. We are looking at Kenya not we are keen on fulfilling our social duties. In only as a country for the construction sector a long term addition to building excellent and high-qual- but also as a destination to invest in hence, ity projects, we have been actively engaged we have a long term development plan in the development plan in promoting local employment by creating country. in the country.” thousands of local jobs, which will benefit the overall industry development. Most important- East Africa has become the biggest regional ly, we are dedicated to training talent to build attractor of FDI, with Kenya leading way. For capacity for the local community. To coincide the FORBES AFRICA reader and the discerning with our CSR mandate, we have been actively investor, why is now the best time to invest involved in various charitable activities includ- in Kenya? ing making positive efforts to environmental First of all, it’s a fast growing, stable economy, protection and supporting sustainable devel- which generates good business. Secondly, opment. With regard to investments, we just Kenya is a business friendly country with a opened our thirty-story twin tower in Dar es strong and prosperous private sector. Thirdly, Salaam, which is the first international five- with the completion of Standard Gauge Railway Plot Nº 55, Muthangari Drive star hotel project that China has invested in (SGR), the country’s infrastructure has been Westlands PO Box 51476-00100 Africa. Our vision remains the same: to be the improved significantly, which improves the Nairobi, Kenya leading company that invests in Africa. environment to conduct further business.

22 | FORBES AFRICA NOVEMBER 2019

TripleOKLaw New Policies To Fully Realise Kenya’s Infinite Potential

Updating The Legal Framework To Ensure Growth The government’s reforms are creating an ever-improving climate for potential investors.

An expert law practitioner with three decades of activity offer a lot to potential investors. For instance, the under his belt, Managing Partner of Nairobi-based firm Nairobi Centre for International Arbitration has been TripleOKLaw John Ohaga feels that all the necessary working to let investors know that all possible disputes steps to foster economic growth have been put in place: resulting from their activity will be handled swiftly “Our PPP framework, for instance, aims at obtaining and competently. We have established a partnership the best partnerships for infrastructure-building in with CAJAC (China-Africa Joint Arbitration Centre), to different areas of Kenya at optimal costs. When the recognise the fair amount of investment coming from framework is put into place, it will bring Kenya forward China as well as the unique needs of Chinese investors at a much faster pace. This new pace will enable us to in terms of dispute resolution.” draw the expertise of global conglomerates.” This year, Kenya improved its Ease of Doing Business Furthermore, concerning the recent Energy John Ohaga, Index ranking by 56 positions and aims to make it Bill that consolidates energy regulation under a Managing Partner into the Top 50 in 2020. According to John Ohaga, KENYA - Africa’s Cradle Of Innovation single framework, Ohaga has no doubt about its of TripleOKLaw this improvement has its roots in a number of factors: effectiveness: “Petroleum, energy, water used to “Kenya has reformed its civil procedure law, introducing have all different legislations. Now, everything has come under mediation as a form of dispute resolution. Land registration has one unifying body, which allows proper planning and resource been reformed as well.” It is clear, then, that the right time to invest optimisation. It is a very forward-looking bill.” in Kenya is now: “There has been talk about Kenya’s potential in Kenya, adds Ohaga, is working hard to improve its investment the last decade, but something needed to be done to realise that climate: “We have addressed what used to hold us back, and we potential. Now you have got the wind with you.”

24 | FORBES AFRICA NOVEMBER 2019 Kenya Wildlife Service (KWS) Managing National Parks And Preventing Poaching And Human-Wildlife Conflict

Gatekeepers of the Dreamland Promoting Kenya’s Exceptional Wildlife

KWS is sparing no efforts to ensure the experience to travellers visiting country’s natural heritage contributes Kenya’s National Parks and Reserves. to Kenya’s growing tourism sector. Tourism, according to Waweru, is a great opportunity for Kenya to further Established in 1989, Kenya Wildlife diversify its economy and create more Service (KWS), the organisation employment: “Tourism in Kenya is entrusted by the Kenyan government primarily driven by wildlife, and includes with the conservation and security many areas of employment: there will be of wildlife and National Parks, is a need for customer relation employees, celebrating its 30th year of activity. and there will be a need for guides for KENYA - Africa’s Cradle Of Innovation “We are proud of our achievements,” us and for the Wildlife Clubs of Kenya, says John Waweru, KWS’ Director which are making efforts to train young General. “A lot has been done in the way people. In my opinion, employment will of wildlife conservation. Our National automatically grow with the sector.” Parks and Reserves are our national Improving access to national parks and heritage, and KWS follows its mandate reserves is a necessary step in unlocking for and on behalf of the citizens of our “Kenya is peaceful, Kenya’s tourism potential and attracting great nation. We are the gatekeepers more visitors, and the combined efforts and facilitators that ensure that wildlife politically stable and of Kenya Roads Board and KWS, enabled is conserved and protected.” with a growing economy. by President Kenyatta’s Big Four Agenda, Improved and proactive security are leading to the development of management of Kenya’s National Parks It is a fertile place to be roads that will allow better and quicker has helped a great deal in boosting the for an investor.” transportation within the parks, without country’s tourism and travel sector, impacting their delicate environmental which in 2018 grew 5.6%, significantly John M. Waweru, balance: “One of our plans is creating a above other sub-Saharan countries. KWS, bituminous surface for the 56 km road however, takes good care not to rest on EBS Director General of that cuts across Nairobi National Park, its laurels: “We are focused on securing Kenya Wildlife Service using a waterproof material that looks like various areas,” explains Waweru. “In soil,” says Waweru. Kenya, 65% of wildlife exists outside With Kenya enjoying political stability the National Parks and Reserves, so and engaging in key economic and the issue of human-wildlife conflict is has been instrumental: there’s a close social reforms to attain durable and especially relevant. For us the primary link between the president, the minister prosperous growth, KWS’ Director focus is to minimise human-wildlife and the current conservation efforts.” General Waweru is positive that the conflict, so security management needs With Kenya aiming to become country will cement its position as to be increased and enhanced. We the leading tourist destination in the leading FDI attractor in East Africa: attended several important international the continent by 2025, there is an “Kenya’s economy is growing. There will conferences on the issue of wildlife imperative need to attract foreign be more and more investments driven conservation: the discussions we had investment to improve infrastructure by the Big Four Agenda. It is a good and the partnerships we formed enabled and facilities in the most beautiful sites environment to come and invest in.” us to identify the issues we need to of the country. “KWS is focusing on deal with in regard to the kind of growth rebranding ten among our top parks to Kenya Wildlife Service we are experiencing. Our enhanced bring out their uniqueness and attract Headquarters, Langata Rd. security management has enabled us to investors,” says Waweru. “We will be P.O Box 40241 00100 Nairobi, Kenya tackle both traditional poaching, which encouraging those who are willing to Tel: + 254 (20) 2379407-9 has reduced significantly since 2015, invest in improving hotels and lodges Email: [email protected] and bushmeat hunting. Our people are under our supervision so that we can Facebook: Kenya Wildlife Service Twitter: @kwskenya versatile, so we know where the threats increase tourist arrivals.” KWS aims Instagram: kenyawildlifeservice are. Additionally, the leadership of Kenya to offer a brand new, 360-degree Toll free: 0800597000

NOVEMBER 2019 FORBES AFRICA | 25 SEACOM Securing Reliable High-Speed Broadband For Corporates And Businesses Across Africa

Quality Connectivity Underpins Kenya’s Transformative Digital Journey

In its first decade, SEACOM has con- that there’s sufficient capacity based on tributed to expanding Internet pene- demand. So, when consumption hits a tration in East Africa, and its plans for certain threshold, we quickly upgrade the future are even more ambitious. and avail more. Secondly, one of the biggest challenges is bringing capacity Launched in 2009 to provide Africa with inland, beyond the major metros, where reliable and economically-viable fibre the deployment of fibre infrastructure is broadband, SEACOM operates the first more expensive. So we’re collaborating undersea cable to supply Kenya and with different players in that regard.” KENYA - Africa’s Cradle Of Innovation East Africa, with four landing points in the Kenya’s future, according to Tugee, is region: Mombasa (Kenya), Dar Es Salaam bright. “Everything is going right. We have (Tanzania), Maputo (Mozambique) and quality access to information and world- South Africa. class infrastructure. Plus, the political “Before the SEACOM cable went live, environment is calm and stable, and the we were using satellite to connect to the government is encouraging the private Internet,” recalls Tonny Tugee, Managing sector to invest and take advantage of Director ENEA at SEACOM. “It was expensive “Investors can come new opportunities. We still have our share and resulted in slow connection speed. The here and take advantage of challenges, but that’s part of business.” arrival of the undersea cable transformed Despite challenges, enabling SMEs connectivity in Africa, bringing quality, of our readily available and tech start-ups to innovate has long reliable and affordable Internet access skills. You don’t need to been a key strategy for Kenya, Africa’s for the first time. As a result, Internet very own Silicon Savannah. SEACOM penetration has soared in the past ten years. go anywhere else: is aware of the capital role innovation In Kenya, for instance, the penetration rate plays as a driver for economic growth. today hovers around 85-90%.” this is it.” As such, the provider gives free capacity Access to better, faster and more stable to innovation hubs, so that developers Internet has been a game-changer for Tonny Tugee, can come together, refine their ideas and Kenyan and East African businesses. Managing Director create different homegrown applications “Our ambition was always to better equip and business solutions. African companies with high-performance ENEA at SEACOM Says Tugee, “The landscape is contin- Internet so that they can harness its uously changing and will continue to do potential for growth, with positive effects so. M-Pesa, for instance, gave access to for local economies,” says Tugee. “We’re financial services to almost everybody proud of what we’ve achieved in SEACOM’s in Kenya. There’s still a lot of potential in first ten years. Now, our business model sectors such as healthcare, agribusiness, has shifted from being an undersea cable technology solutions for companies. We tourism, and other industries.” operator, offering wholesale Internet work with them to connect businesses to Tugee concludes, “There are many connectivity, to one where we sell directly their innovative services for the benefit interesting schools that are developing to businesses. We feel we need to extend of both parties. That’s not limited to new Kenyan talent. The ICT sector is the same quality enjoyed by mobile and Microsoft. We’re also working with other continually creating employment and new Internet service operators to enable local large cloud providers and hyperscalers.” opportunities essential for this country businesses to innovate and scale.” While the improved performances and East Africa as a whole. Moving forward, Tugee adds, “Microsoft recently ensured by undersea fibre optic cables I don’t see a stop to this vital function, opened data centres in South Africa, has greatly increased Internet usage which utilises broadband connectivity as which increased the accessibility of and availability in the region, there’s its foundation.” cloud resources on the continent for still much that can be done. SEACOM is African businesses. SEACOM is an enabler working to further expand bandwidth SEACOM Kenya Limited of this process. We identify partners access in East Africa and beyond. Tugee Tel +254 20 5133000 that have different cloud and emerging explains, “First of all, we’re ensuring www.seacom.co.ke

26 | FORBES AFRICA NOVEMBER 2019

Amb. Dennis Awori Chairman Of CFAO Kenya Limited

Distributing Positive Change Across The African Continent

CFAO is aligned with the Big Four Agenda to assemble and distribute the key elements of Kenya’s success.

What was the original vision of the group and an app, when you want to move something from how did it assist you in your success? industrial area to an urban area, you can forward CFAO was established in 1852 as a small a request through the app. They will send you the consumer products and foods company and appropriate truck for transporting what you need. KENYA - Africa’s Cradle Of Innovation evolved into a diversified multi-billion dollar We ourselves have used Sendy for distribution of corporation. The original vision for CFAO was to spare parts. In this way, garages can order spare be a company that grows with Africa and does parts on a platform and pay through M-Pesa. not just trade goods. We are vertically integrated, Another example is Seven Seas Technology. beginning with production (we operate 18 This is a healthcare digital company. They were production and assembly plants) and distribution, subcontractors of medical equipment. Now they for the B to B markets and individual consumers. are working to build a platform to link medical

Photo credit: ©Corinne Jamet We are focused on the growing middle class and service data: number of doctor visits, prescriptions, have grown at twice the pace of Africa’s GDP. imaging. It will be very useful to help with the “Our motto is provision of universal healthcare. How is CFAO expanding its footprint and ‘With Africa, supporting business diversification in Africa? In what other ways is CFAO contributing to the Our motto is “With Africa, For Africa.” We want long- Big Four Agenda? For Africa.’ term commitments to facilitate change. We have a We have used the Big Four Agenda to guide physical presence in 36 African countries. Taking our investments. In manufacturing, we have We want into consideration our independent distributors, invested in the substantial expansion of vehicle we access 49 of the continent’s 54 markets. Our local assembly. We also work closely with content long-term businesses are split into four domains: automotive manufacturers. In healthcare, we will be introducing commitments being the largest, followed by healthcare; consumer mobile affordable sickle cell disease test kits. As for goods with an activity in agriculture; technology affordable housing, we are introducing the supply to facilitate and energy, with a focus on renewable energy. of cooking gas through reticulation in partnership with the National Housing Corporation. For food change.” What were the competitive advantages of the security, we are blending fertilisers and providing country that made CFAO choose Nairobi as its mechanisation. hub for the region? From Nairobi, you can get to most of Africa in Kenya is leading the way as the biggest less than five hours with direct flights. Even the regional attractor of FDI. For the Forbes reader port of Mombasa is well placed for our activities. and the discerning investor, why is now the The telecommunication and financial services in best time to invest in Kenya? Nairobi are good. Kenya is the most digital country The conditions could not be better. We have in the region. The political stability and speed of a government that is reforming laws and reforms are also conducive for business. regulations in order to make doing business easier. It now protects investors and products Kenya’s brilliant usage of ICT has set the path from counterfeit goods and bad practices on for African development. How is CFAO making importation through the ports. We have a young the most of modern technology to expand its and eager workforce. As a country, we are now CFAO Group business? thinking bigger and bigger. Even companies here 18, Rue Troyon We invest in innovative companies. For example, have stopped thinking about Kenya as small 92310 Sevres - FRANCE [email protected] we invested in a company called Sendy, which does and only Nairobi as a viable market. They have Phone: +33 (01) 46 23 56 56 for logistics what Uber does for people. You have started looking at the entire region.

28 | FORBES AFRICA NOVEMBER 2019

Stergios Gkaliamoutsas Managing Director Of Del Monte Kenya Limited

Ensuring Job Creation And Community Empowerment Through Fresh Produce

Well renowned in Africa for the quality of its products, Del Monte Kenya’s model of sustainable growth is an example for the sector.

In Africa, Del Monte is one of the leading vertically all of which not only teach valuable skills to children, integrated producers, marketers and distributors but also provide employment and housing for the of high-quality fresh fruit and vegetables, as well teachers. Over 1,600 students attend learning as snacks, juices and desserts. What was the sessions in these schools. As for what concerns the KENYA - Africa’s Cradle Of Innovation original vision of the group in Kenya? ecosystem, environment protection, efficient use of Del Monte embarked on our relationship with natural resources, conservation practices and proper Kenya back in 1965, just after the country’s waste management are our top priorities. Rainfall independence. Our vision was to be a leader in the in Kenya requires supplementation by irrigation, so production, marketing and distribution of a wide over the years the company has invested billions of range of premium healthy foods and processed shillings in water storage infrastructures that allow fruits to export mainly to the European markets. rainwater harvesting and storage in thirteen dams Over the past several decades, we have proudly with over six million cubic metres capacity to support invested in the people and prosperity of Kenya the plantation, factory and domestic water needs of “Our vision is to turn vacant, unoccupied and unused land into our communities. In average 100 million shillings are thriving plantations with efficient irrigation as well invested every year in efficient drip and centre pivot to continue as water infrastructure, roads, medical clinics and irrigation systems that use 40% less water per irrigation schools that benefit the entire community. round. “Reuse, Reduce, Recycle” is our motto when it inspiring healthy comes to other production inputs. The water used in Del Monte has been recognised as the most the production process is being treated and recycled lifestyles admired food brand in Kenya. What sets you apart for irrigation. Packaging material waste is also recycled through from the competition? or disposed of in an environmentally friendly manner Our operation is fully fledged and vertically to ensure that it does not pollute the environment. As a wholesome integrated with 100% of the value addition done in result, Del Monte Kenya is the only company in Kenya, Kenya. This integration coupled with a high level of and probably in Africa, to be audited and certified and convenient mechanisation and operational efficiency results in to be compliant with the internationally acclaimed products.” excellent product quality. Our production processes Sustainably Grown Certificate. and finished products are constantly audited and certified against local and international quality, Del Monte recently invested KSH 580 million social, environmental, and legal standards. in a new fresh fruit packing facility. How is this investment going to support your expansion in How are you working to expand your business the region? while preserving the ecosystem and empowering Our new state-of-the-art fresh fruit packing facility communities in Kenya? will provide outgrower technical assistance, direct Currently, Del Monte Kenya directly employs more access to East Africa and global markets and higher than 6,500 locals, provides company housing for profits for over 2,000 farmers producing avocados, more than 2,000 employees and their families and mangos and other premium fresh products. By 2020, supports approximately 28,000 other jobs through the facility will process approximately 70 thousand other local companies associated with our activities. metric tonnes of produce per year, becoming one of Del Monte Kenya Limited All Del Monte Kenya employees receive free medical the largest packing/shipping facilities in Kenya. It is Oloitiptip Road, P.O. Box 147-01000, services through six company clinics. In addition to estimated that Del Monte Kenya’s purchases of fruit Thika, Kenya the housing units we provide to our employees within from local farmers will exceed KSh2 billion annually. Tel: +254 (0) 20 2141600 our plantations, Del Monte Kenya runs, in conjunction The annual locally sourced services and materials are (0) 709 713 000 [email protected] with the government, eight nursery schools, three estimated to be in the region of KSh 1 billion for goods www.freshdelmonte.com primary schools and two secondary schools, and services.

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Base Titanium Dominating The Market And Improving Livelihoods

The Undiscovered Potential Of Kenya’s Mining Sector

After breaking ground in Kenya’s mining dormitories and community water sector in 2010, Base Titanium knows points. In health programmes, there is a world of opportunity just Base works closely with Kwale below the surface. County to support 250 commu- nity health volunteers who are Base Titanium has the honour of being Kenya’s trained in sanitation, anti-malaria first large-scale modern mining project prevention and health service ac- in its mining sector. Today, it accounts for cess. In education, the company 65% of all mineral production value in the is focused on scholarships and KENYA - Africa’s Cradle Of Innovation country. Base Titanium entered Kenya in supports over 2,000 students 2010 and now dominates the mining sector through all four years of second- while setting world class standards in safety, ary education. Their largest focus, environmental management and communi- however, is the livelihood enhancement ty engagement. Simon Wall, General Manager There is absolutely programme. Being an agriculture-based of External Affairs states, “The reason why no reason why there county, cotton growing has been reintro- we dominate the sector is two fold. Firstly, duced in Kwale. About 2,000 farmers have the resources that we have may be small aren’t more large-scale gathered into a cooperative called PAVI, and by international standards, but the mineral Base Titanium has linked them directly assemblage makes it an exceptionally good deposits waiting to be with an Australian based apparel company, resource. Secondly, Base Titanium focuses discovered in Kenya. Cotton On, providing a sustainable market heavily on building a culture of safety in all linkage. “What we are aiming for and ulti- we do which extends beyond the gates of Kenya has a lot of mately want to get is the cotton grown by the mine and into our relationships with local PAVI in Kwale, beingspun and treated all in communities and through our environmen- opportunity. Kenya, with garments being produced in tal programmes.” The Kwale project was the Kenya for export,” says Wall. This objective company’s first major endeavour in Kenya is in line with the government’s Big Four and consolidated its place in the mining sec- Agenda development programme aimed at tor in the country. The project is considered and diversified economy. This ensures boosting the manufacturing sector. to be an incubator for building the company, a significant multiplier effect is felt in its Kenya is a largely under-explored systems, personnel, and the management mining projects through high levels of mining jurisdiction, which means there is structures for wider growth. local content, including a dynamic and potentially a lot of opportunity for investors. In July 2017, it was recognised under the well-trained labour force.” Wall states, “For junior explorers, this is Kenya Vision 2030 national development Base Titanium has presented Kenya with a great opportunity. There is absolutely blueprint, an acknowledgement which the opportunity to be used as a marketing no reason why there aren’t more large established Base Titanium as a major tool for advertising to facilitate more scale deposits waiting to be discovered partner in the country’s development. Wall investment in its mining sector. Base is in Kenya.” Geographically and historically says: “Being recognised as a Vision 2030 an example for international and domestic speaking, this appears to be true. Kenya flagship project formalised the strong investors alike, showing that mining is a is surrounded by nearby Tanzania, the relationship the company enjoys with the viable option and Kenya has the resources DRC and South Sudan where resources are government and contribution it is making that permit successful large-scale projects. proven to be available. “There is no reason towards Kenya’s development. Together, Base Titanium is motivated by empow- to think that Kenya is just a blank spot. Base Titanium and the government of ering communities in Kenya, having spent Kenya has a lot of opportunities.” Kenya have worked closely to promote the over US$20 million on development pro- mining sector to new investors.” grammes focusing on key areas that fall Kenya is well positioned to benefit in line with the Big Four Agenda: commu- from a growing mining sector and further nity infrastructure, health programmes, investment from companies like Base education and livelihood enhancement. Telephone: +254 (0)20 513 0100 Titanium. “The advantage it enjoys,” says Community infrastructure includes building Email: [email protected] Wall “is that Kenya has a well developed hospitals, dispensaries, school classrooms, P.O. Box: 1214 Ukunda 80400

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Closing Article

The African Capital Of Innovation KENYA - Africa’s Cradle Of Innovation

enya is considered one of the most innovative countries in the continent, leading the way with one of the best internet connections in the world through its establishment of the undersea fibre cables that extend to three countries: Mozambique, Tanzania and Djibouti. Kenya’s strong ICT sector and strategic location have caught the eye of some of the world’s largest multinationals to host research and development facilities, such as IBM, Cisco and Microsoft, which is scheduled to open its Development Centre in Nairobi. Tony Tugee, CEO of SEACOM says that, “Thanks to the ICT sector, we’ve seen a lot of interest coming in with global data centres opening in Nairobi and moving towards the rest of the region. This comes with foreign K direct investment; it opens up opportunities for innovation.” Reliable internet is an invaluable tool that has allowed the financial sector to dominate financial inclusion. Kenya has deeply penetrated mobile financial services through mobile money apps such as M-Pesa from Safaricom. Betty Korir, CEO of Credit Bank states, “Our solutions have been focused on financial inclusion. If you look at penetration into the economy, everyone banks, and you can bank through your mobile device.” The partnership between ICT and finance is revolutionising the economy in Kenya by focusing on its citizens, as well as small and local businesses. Innovation in the country, however, is not solely related to its impressive technology. The country is focused on creating services that will improve the way the economy flows, especially when it comes to solutions for small and medium-sized enterprises. Some of the most innovative startups are in Kenya, like Twiga Foods, which bridges the gaps in food and market security by providing farmers with a ready and guaranteed market. Cellulant, another startup, provides convenient digital payment experiences for customers who are making purchases online. Such startups are valuable for Celeste Liyai, COO of AfricaSokoni, an online retailer who has tapped into the ecommerce market by connecting merchants with Innovation in the country, consumers across the country. Liyai and her company seek to empower SMEs and provide “educational sessions to explain how our company works.” however, is not solely In addition, Kenya’s renewable energy sector is generating a promising market. Kenya’s dedication to renewable energy sets it apart as the country works toward the goal of 100% related to its impressive green energy by 2020. By launching the Lake Turkana Wind Power farm, the country is technology. The country expected to produce enough electricity to power 330,000 local homes. President Uhuru Kenyatta says, “Kenya is without doubt on course to be a global leader in renewable energy.” is focused on creating Today, the nation generates about 70% of its electricity from renewable energy sources, most notably through hydropower and geothermal. services that will improve All of these efforts are, of course, in line with President Kenyatta’s Big Four Agenda to aid Vision 2030, which focus on expanding manufacturing, affordable healthcare, housing and food the way the economy security. The agriculture sector is developing solutions to modernise its processes, offering flows, especially when it tech-based practices that will allow farmers to withstand extreme weather conditions and reduce overhead cost, while banking and retail seek to empower and educate local businesses. comes to SME solutions. Innovation is taking hold all over Africa, but seems to originate from its capital: Kenya.

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